The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 02/24/2020 | Report No: ESRSA00476 Feb 24, 2020 Page 1 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Philippines EAST ASIA AND PACIFIC P172399 Project Name Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Urban, Resilience and Investment Project 2/5/2020 5/25/2020 Land Financing Borrower(s) Implementing Agency(ies) Republic of Philippines Department of Agrarian Reform Proposed Development Objective(s) To improve land tenure security and strengthen property rights of agrarian reform beneficiaries (ARBs). Public Disclosure Financing (in USD Million) Amount Total Project Cost 470.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] To address and reverse land tenure inequalities from the country’s colonial heritage, the Department of Agrarian Reform (DAR) and the Department of Environment and Natural Resources (DENR) are implementing a comprehensive agrarian reform program (CARP). Introduced in 1988 this program aims to address equity and social justice, improve farming efficiency and reduce poverty through: i) acquiring and distributing public and private agricultural land holdings to tenants, landless farmers, or tillers who qualify to become agrarian reform beneficiaries (ARBs); and ii) providing integrated support services to these small land holders including agriculture related infrastructure, technical assistance and credit. CARP aims to cover an estimated 70 percent of total alienable and disposable (A&D) lands in the Philippines, benefiting about 54 percent of agriculture households in the country. Feb 24, 2020 Page 2 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) As of December 2018, DAR has distributed more than 4.9 million hectares of land to small-scale farmers resulting in over 3 million ARBs receiving land. Of the distributed land, approximately 55% were issued as individual titles, and an estimated 45% received tenure in the form of a collective Certificate of Land Ownership Award (CLOA). Collective CLOAs were largely issued in the 1990s to expedite land redistribution, with the intention of later subdivision and individual titling. Over the past three decades, DAR has been incrementally working on subdividing collective CLOAs and issuing individual titles. The Support to Parcelization of Land for Individual Titling (SPLIT) project aims to sub-divide (‘parcelize’) 1,368,900 hectares in 78 provinces covering 15 regions nationwide providing individual titles to an estimated 750,000 ARBs. This scope covers roughly 4.5 percent of the land area of the Philippines and is the estimated balance of remaining collective CLOAs in land classified as alienable and disposable. The project will initially determine the status of collective CLOAs including the existing ARBs through desktop verification and field validation of the collective CLOAs. Through the issuance of individual titles, farmers will gain clarity and legal proof of the land they own and occupy. This security will encourage investment in agriculture productivity, and once they have paid the land amortization (i.e repayment to the government for the land), they have the freedom to sell, lease out or otherwise transfer the land they have invested in. Gaining an individual title will also provide them with a personal account at Land Bank (and a form of collateral), thereby facilitating access to credit and support financing from the government and other financing institutions. Lastly, resolving and solidifying land borders will reduce community conflict. While the DAR remains dedicated to their mandate of CLOA parcelization, the current process of converting collective CLOAs to Public Disclosure individual titles is cumbersome. The PDO will be achieved through three components: 1) Parcelization of Collective CLOAs; 2) Capacity Building and Technical Assistance; and 3) Project Management and Monitoring and Evaluation. These components will support the ongoing government program for parcelization while seeking to gain efficiency in the process through technology, rationalizing workflows and streamlining stakeholder engagement. More specifically the project will focus on supporting the processes (community consultation, preparing and approving master lists of ARBs, reaching agreement on lot allocation, completing boundary demarcation and survey and preparing and signing deeds of parcelization) necessary for the preparation of applications to cancel collective CLOA and register titles for individual CLOA. Component 1 will accelerate the generation and issuance of individual titles by conducting the following activities: (a) coordination of technical working groups, improvement of the regulatory framework, preparation of a targeted communication program and policy review; (b) development and implementation of a CLOA Document Management System and a Digital Archive for the issued individual titles; (c) completion of an inventory of collective CLOAs for parcelization; (d) field testing improved procedures in three regions, including modern survey techniques, inclusion of female names on titles and improved communications; and (e) rolling out the improved procedures to complete collective CLOA parcelization in the 15 regions. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] Feb 24, 2020 Page 3 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) The project is nationwide and will be implemented in rural, agricultural areas of the country which could include remote, lowland and hilly areas used as agricultural lands, declared ancestral domain lands of indigenous peoples, and lands at the edge or within forest land and protected areas. There are several areas of concentration, notably Eastern Visayas with 38% of the total land needing parcelization, of which 78% reside in Leyte and Western Samar. The Autonomous Region in Muslim Mindanao (ARMM) is not included. CARP and project beneficiaries are among the poorest farmers in the Philippines. About 9.6% of the CARP beneficiary households (44,410 households) belong to Indigenous Cultural Communities/Indigenous Peoples (ICC/IPs) as defined under the Philippine Indigenous Peoples Rights Act (IPRA). Close to 20 percent of the ARBs are Tagalog, 16 percent Ilocano and 30% Visayans. The project would take place in some conflict areas, including in Mindanao (but not in ARMM). A wide range of ownership options and tenure instruments issued by the DENR, including ancestral domains and group rights for on-site forest management, are recognized in the Philippines. Programs to incrementally gain tenure security in both rural and urban areas exist. Nevertheless, land policy and land administration in the Philippines also face substantial challenges. Weak governance exists in a wide range of areas, from property rights recognition and public provision of land information to land use planning and management. The lingering CARP program has resulted in land tenure limbo for many ARBs for more than three decades. Thus, the government now seeks to expedite the completion of the agricultural reform process with a focus on completing the remaining subdivision of the collective CLOAs and issuing individual titles. Project implementation in the first year will focus on parcelization of collective CLOAs with no significant environmental and social (E&S) risks and impacts (e.g. no overlap with forest and protected areas and ancestral Public Disclosure domains) in three pilot regions. In parallel with the inventory that will be prepared during early implementation, DAR will undertake a more detailed assessment, including consultations with key stakeholders and experts, of E&S risks and potential impacts and propose additional mitigation measures to be incorporated into the E&S documents. Staffing, technical assistance, training and budgetary resources will be re-assessed. The revised E&S documents will be submitted, together with an assessment report, for World Bank review and approval. D. 2. Borrower’s Institutional Capacity DAR has experience with implementing the Bank's safeguards policies under previous projects, but has no experience with the more integrated and broader approach of the new ESF. It does not currently have a dedicated unit that handles environmental and social risks for its projects, but experienced staff have been assigned on a project-per- project basis. For SPLIT, a dedicated team of experienced DAR staff has been established to assess the environmental and social risks for the project and prepare the ESF risk management frameworks for project implementation in consultation with relevant departments and managers of DAR and other government agencies. The ESMF includes capacity building and staffing plans. The project's PMU will include an Environmental and Social Unit with DAR staff and two hired specialists on environmental and social risk management and stakeholder engagement to provide advisory and oversight assistance. In addition, regional and provincial offices will include E&S specialists and focal persons with responsibility to implement the ESMF and associated instruments. DAR will work closely with key government agencies, including the Department of Environment and Natural Resources (DENR) and its various offices (the Land Management Bureau, Forest Management Bureau, Biodivesity Management Bureau and the Regional offices starting with the Community and Environment and Natural Resources office (CENRO), Provincial Environment and Natural Resources office (PENRO) and Regional Director), the Land Registration Authority (LRA), the Registry of Deeds (ROD), local government units (LGUs) and the Land Bank of the Feb 24, 2020 Page 4 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) Philippines (LBP). In areas with indigenous peoples, the National Commission on Indigenous Peoples (NCIP) will also be involved. There is already a track record of working across the agencies and a Joint Administrative Order is in place between DAR, DENR, LRA and NCIP to address jurisdictional and operational issues between the agencies, including potential overlaps of land classifications. In addition, Memorandum of Agreements with the respective partner agencies will be established to facilitate cooperation during project implementation. The local government units (LGUs) will also play a key role in this project since they are mandated to issue Comprehensive Land Use Plans (CLUP) and certificates of stewardship to manage portions of forest lands and other natural resources. Capacity building and training on the implementation of environmental and social risk management measures will be conducted. The detailed inventory and further assessment of E&S risks and impacts undertaken in early implementation will re-assess staffing, technical assistance, training and budgetary resources needed to address E&S issues for the Project. A Project Steering Committee will be established at the national level, and respective Project Coordinating Committees (PCC) will be created at the regional and provincial levels, all of which will be chaired by DAR with the representatives from partner agencies including DENR, LRA/ROD, LBP, NCIP and DILG; and oversight agencies such as the Department of Finance (DOF), National Economic and Development Authority (NEDA) and Department of Budget and Management (DBM). The National PSC will provide policy direction and overall guidance to the project. The Regional PCC will review the work and financial plan, provide guidance in the implementation and management of component activities at the provincial level and monitor project accomplishments. The Provincial PCC will be responsible for preparing annual work plans and budget, monitoring of project implementation progress and maintaining good coordination among implementing agencies at the provincial and municipal level. Public Disclosure II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) High Environmental Risk Rating Substantial The project will support the subdivision and individual titling of collective CLOAs; it will not finance civil works or other activities that may physically impact the environment. The initial screening of collective CLOAs by DENR will help reduce the risk of negative environmental impacts that may result from forest conversion at the margins or inside forest lands, protected areas and national parks to permanent agricultural use. It is possible that enhanced or continued cultivation in these lands could lead to fragmentation and denudation of forest lands, national parks and other protected areas designated for landscape/seascape conservation and biodiversity preservation, as well as endanger the lives of farmers while tilling in disaster-prone areas such as on steeply sloping lands and riparian zones. The coverage of the collective CLOAs will need to be screened and an Investigation, Verification, Approval of Surveys (IVAS) process by the Land Management Bureau will be conducted before parcelization to identify any contradiction or overlap of the current agricultural land use with the legislated land classification for forest lands or protected areas. Such collective CLOAs will be cancelled and for the Agrarian Reform Communities to continue to occupy these lands, they need to be supported to secure tenurial instruments applicable to forest lands or protected areas and implement an approved Forest Management Plan or Protected Area Management Plan, as the case may be. These occurrences are expected to be up to ten percent of collective CLOAs with partial or complete overlaps. These collective CLOAs may fall within forest land or protected areas which were originally declared as public domain or Feb 24, 2020 Page 5 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) government owned lands and would not have been eligible under the CARP. In cases where the titling programs could result in an expansion of agricultural lands at the expense of forest lands or protected areas or those that may qualify as natural habitats, a significant loss of ecosystem services may lead to reduced land productivity unless mitigated by widespread adoption of natural farming systems that promote biodiversity and sustainable land management. Indirect environmental impacts may generally be positive as land ownership normally promotes good environmental stewardship. The security of tenure that results from the issuance of individual titles is expected to encourage beneficiaries to engage in sustainable land management practices including the landscape conservation and biodiversity areas preservation, invest in environmentally sustainable permanent structures and plant permanent crops. There is a risk, however, that greater investments in agriculture may drive increases in the use of fertilizer and pesticides, and place greater demands on water for irrigation. Another positive impact may include the return of portions of lands mistakenly issued as collective CLOAs to their original forest or protected areas land classification status which are not eligible for titling as declared by national law. Social Risk Rating High The project aims to support poor farmers by enhancing tenure security, including for indigenous peoples. However, there may be situations where individual households and indigenous communities may be adversely affected. For instance, the validation and rectification of collective CLOAs with respect to official government Alienable and Disposable (A&D) land classification may result in the return of some parcels of land back to forest land and protected area status under alternative tenurial instruments which in turn result in the attenuation of property rights of the affected ARBs, or in extreme cases result in their displacement if they are denied issuance of alternative tenurial Public Disclosure instruments under DENR's regulation. The issuance of individual titles may also result in disqualification, and potential eviction, of current occupants of parcels within the collective CLOAs, who were not the original ARBs and may have been occupying and tilling the land for quite some time and in instances where acceptable alternatives cannot be found. The prevalence of these cases cannot be ascertained until the inventory of collective CLOAs is completed during the first phase of project implementation. It is assessed that up to ten percent of collective CLOAs may overlap with forest land and protected areas and about five percent with ancestral domains. It is not possible to determine the scope of current occupants that may be disqualified until site-specific validations are undertaken as the parcelization process is rolled out. The ESF instruments include screening and consultation tools to verify the legal status of occupants and land parcels and any impacts that cannot be avoided in terms of economic and physical displacement will either be excluded to avoid these impacts or if not possible mitigated and compensated following national legislation and the ESF. The project aims to benefit indigenous peoples, who are subject to strong rights, including to land, under the Indigenous Peoples Rights Act (IPRA). Some collective CLOAs may overlap with areas covered by ancestral domains under the IPRA and may not be eligible for participation (leaving the land subject to existing tenure security under the IPRA). Some indigenous communities outside of ancestral domains may also wish to continue collective land tenure arrangements within the collective CLOA which will be verified following a participatory planning process. The project would aim to enhance benefits to, and avoid adverse impacts on, indigenous peoples through the application of national legislation and ESS7 and the Project’s IPPF includes provisions for obtaining free, prior and informed consent Feb 24, 2020 Page 6 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) from indigenous peoples. However, inherent risks remain, including from vested interests, disagreements within communities and the potential for local mismanagement and differential recognition of land rights. The project will operate in some conflict areas and some sites may have conflicts over land. Surveyors may therefore be accompanied by government security forces, usually the local police but in conflict areas potentially also military forces. The Project will not involve the use of private security forces. Policy related activities are not anticipated to have adverse impacts on the environment or people. They will be informed by the ESF and when needed policy reforms will be assessed for their potential and social impacts and risks. Public consultations will be undertaken when needed, including with representatives of indigenous peoples. Given these potential adverse social impacts on individuals households, involvement of indigenous peoples, the size of the project and its complex implementation arrangements, the client’s lack of experience with the ESF, contextual risks outside the control of the project, and inherent risks in land titling the social risks are assessed to be High. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The project will involve the subdivision of about 1.4 million hectars of land under collective CLOAs issued under CARP Public Disclosure into individual land titles. Ground activities under the project are limited to geodetic surveys, walk-throughs, consultative meetings, house-to-house visits and information campaigns. As such, the project is not covered under the Philippine EIS system and therefore is not required to undergo the government Environmental Impact Assessment (EIA) process. Nevertheless, the issuance of individual land titles is expected to have impacts on current as well as future land use, including positive impacts on the overall agricultural production and soil conservation due to improved security of tenure, and the socioeconomic conditions of the recipient of land titles. It may also have impacts on the overall management of the collective CLOA lands as well as community dynamics, agricultural production, and social and economic relations among the current land occupants, including risks of boundary and ownership disputes between claimants. There is also potential attenuation or loss of property rights of some of the current land users. Currently there are several land, forest and natural resources tenurial instruments and Comprehensive Land Use Plans (CLUP) that need to be reviewed for consistency with the coverage of the collective CLOAs. Examples of these instruments are certificates of stewardship that include: (1) Protected Area Community-based Resource Management Agreement, (2) Community-Based Forest Management Agreements (CBFMAs), (3) Special Land Use Permits (SLUPs), (4) Industrial Forest Management Agreement (IFMA) and (5) Socialized Industrial Forest Management Agreement (SIFMA). The Borrower has conducted an Environmental and Social Assessment (ESA) as part of preparation of the ESF instruments to identify the project's impacts and risks and to help formulate environmental and social impact mitigation and risk management measures to be applied during project implementation). The ESA includes an assessment of environmental, social, legal, and institutional issues, risks and potential impacts of the land titling process, especially on poor and vulnerable groups (as per ESS1 and ESS5), which has informed the development of Feb 24, 2020 Page 7 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) mitigation measures and the grievance redress mechanism. The assessment has identified a number of risks, including potential changes to tenurial arrangements and some cases where current occupants may need to vacate land determined to be forest land or protected areas owned by the state or because they would be disqualified as title holder under CARP. In addition, the ESA assessed potential impacts on individual farmers who may owe taxes that have not been collected for a number of years. Individual farmers may also be tempted to sell all or part of their land with the new titles for investments or to pay off debt. Information and education materials will be prepared to inform beneficiaries of such risks, their rights and obligations and technical support services available from DAR, DENR, DA and other organizations and development partners to enhance their livelihoods and income. DAR is also consulting with relevant government agencies to explore options to support vulnerable households and manage these risks; for instance, staggered payment, lower fees, etc. The ESCP includes the establishment of a working group led by DAR and with collaboration from DOF, DILG and especially the LGUs to facilitate the determination of measures and drafting of guidelines to support vulnerable households concerning payment of real property taxes (e.g. staggered payments, lower fees). Impact and risk management measures are included in the project's Environmental and Social Management Framework (ESMF), including an environmental and social screening tools (including an Environment and Social Performance Checklist and Environment and Social Performance Plans), Resettlement Policy Framework (RPF) and Indigenous Peoples Planning Framework (IPPF). A Stakeholder Engagement Plan (SEP) and Labor Management Procedures, both with a Grievance Redress Mechanism (GRM), have also been prepared. Subdivisions of CLOAs during project implementation will be undertaken in a phased manner to screen out potential sites with overlapping claims and social impacts requiring mitigation plans (e.g. RAP or IPP) during the first year of implementation. As Public Disclosure noted supplemental assessment of E&S risks and potential impacts that will be prepared during early implementation in parallel with the inventory will propose additional mitigation measures to be incorporated into the E&S documents. Staffing, technical assistance, training and budgetary resources will be re-assessed. The revised E&S documents will be submitted, together with an assessment report, for World Bank review and approval. This is reflected in the ESCP. Policy related activities will be informed by the relevant standards of the Bank’s ESF. They will be assessed for their potential environmental and social implications, risks and impacts. Public consultations will be undertaken when needed to inform policy related activities. ESS10 Stakeholder Engagement and Information Disclosure Stakeholder engagement is critical for the Project as the CARP is one of the most-awaited priority programs of the government that will benefit poor smallholder farmers. Agrarian communities generally favor the CARP, however, there may be some communities that do not wish to participate in the program as they may want to continue managing their land under customary boundaries and arrangements. There may also be some collective CLOAs that are managed by cooperatives or ARB associations, whose members may not want to resort to individual titling. The CARP is also subject to ongoing discussions among civil society organizations in terms of its relevance, scope and design. Some of these organizations have been engaged during project preparation to ensure that the goals of the project, its benefits to farmers and to agricultural productivity, and its environmental and social issues are communicated accurately and feedback is sought from key stakeholders. Feb 24, 2020 Page 8 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) The draft SEP and other ESF instruments were disclosed locally on January 20, 2020 and will be disclosed at the Bank’s website prior to World Bank appraisal. The instruments were revised to reflect input from the Bank’s internal review and due diligence process and feedback received during the conduct of the ESA and public consultations. Public consultations were held in the Cordilleras on January 23, 2020 targeting indigenous peoples and Manila on January 28 and February 19 2020, the latter targeting NGOs. After the supplemental assessment of E&S risks and potential impacts during early implementation in parallel with the inventory, revised E&S documents will be publicly disclosed and consulted with stakeholders before final approval by the Borrower and the Bank. DAR will continue to engage key stakeholders during project implementation, including on the implementation of the ESMF and related instruments. A Stakeholder Engagement Plan (SEP) has been developed to guide stakeholder engagement during project implementation, including consultations and dialogues with partner agencies, civil society, Agrarian Reform Beneficiary communities and the holders of collective CLOAs, including indigenous peoples. The SEP includes a project-wide, multi-tiered Grievance Redress Mechanism which is accessible to all stakeholders. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions Issues and risks involving labor and working conditions are deemed manageable for this project. The project will not Public Disclosure finance construction of infrastructure and civil works that would bring about influx of workers. The project will mobilize project workers to validate technical data on the collective CLOA for each site during implementation, however, only nominal occupational health and safety issues are anticipated. DAR may hire up to 5,000 workers, mostly surveyors, geodetic engineers and support field staff who will participate in the field survey and validation of the CLOAs, but less than a dozen workers are expected to be present in a particular project site and most of them would be skilled and professional workers. When needed, they would travel by road to remote areas, and would be required to follow the Project’s security procedures. Survey contractors will be required to provide their workers with necessary personal protective equipment (PPEs) such as boots, hardhats and harnesses when working on cliffs and rough or unstable slopes. DAR staff (both organic and contractual) and private contractors are subject to national occupational health and safety (OHS) and labor laws which are aligned with international labor standards. Community workers may be used to support survey teams. The project will not engage primary supply workers. The project will operate in conflict areas and in sites with potential land disputes. DAR is authorized by law to call upon other government agencies such as the Department of National Defense and the Philippine National Police for assistance to ensure security, peace and order for DAR staff and project workers during the conduct of the surveys and the distribution of the individual titles. A security protocol is included in the ESMF and LMP in compliance with regulation and procedures of government agencies who will assist in providing security measures in the field and the Bank’s ESS2 (and ESS4). DAR or contractors will not hire private security forces. Feb 24, 2020 Page 9 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) Though occupational and health safety issue are anticipated to be low risk, they will require attention of the Borrower. Labor Management Procedures, including measures for grievance redress and security protocol, have been prepared. ESS3 Resource Efficiency and Pollution Prevention and Management The project will have no significant impact on water and energy consumption as well as on air and water pollution. The project does not include nor support activities or processes that require the use of fertilizers or pesticides, as well as water for irrigation. However, the project’s outcome of secure land tenure resulting from stabilization of the ARBs’ property rights is expected to encourage investments in intensified and diversified crop production, which may increase the use of chemical fertilizers and pesticides, as well as higher demand of water resources for irrigation. On the other hand, erosion and sedimentation is likely to be reduced in the long term as farmers are expected to switch to perennial crops which does not need frequent tillage and/or invest more on permanent soil conservation structures. DAR, with the support of the Department of Agriculure (DA), DENR and other government agencies, already provides adequate technological support, with regular government funding to promote Good Agricultural Practice (GAP) to farmers receiving individual titles. The ESMF includes an awareness raising and facilitation of access to Capacity Development Programs for project ARBs to be provided with free training programs funded by DAR’s regular Technical Support Services – a long list of regular courses conducted offered to farmers since the CARP started in 1988. The courses are conducted in the field by agricultural experts and professionals covering a wide Public Disclosure range of topics on: 1) Agri-extension such as Integrated Pest Management (IPM), Organic and Natural Farming practices, Slope stabilization/Soil erosion control, Climate Change Mitigation and Adaptation, 2) Governance - Organizational Management, Operational Management, Microfinance, Business Policies and Procedures, 3) Livelihoods, Marketing and Social Enterprise development such as Agro Enterprise Development, Sustainable Livelihoods, Food processing and packaging of agricultural products and other trainings to help them increase the agricultural productivity of their farm lands. The ESMF includes a Participatory Rapid Rural Assessment and E&S Screening tool, including a Collective CLOA Environmental and Social Performance Checklist (CC-ESPC) and an Individual CLOA Environmental and Social Performance Plan to prepared before parcelization to identify and address potential risks and impacts, including concerning pollution prevention and sustainable land and natural resource use. ESS4 Community Health and Safety While the community health and safety risks for this project are expected to be small in magnitude, site specific and have low probability of serious adverse effects to human health, they will require attention of the Borrower. Ground activities will be limited to the conduct of land survey, consultation meetings, house-to-house visits and walk- throughs. Workers would include organic and contractual staff of DAR from the municipal and provincial offices and staff of the private survey contractors. The DAR teams and private survey contractors will be required to observe a code of conduct for workers which addresses community health and safety risks, including risks of gender-based violence and child labor. The code of conduct and protocol is included in the ESMF. Feb 24, 2020 Page 10 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) The project will operate in conflict areas and in sites with potential land disputes. Risk associated with operating in conflict areas will be assessed on an ongoing basis by DAR regional offices and risks associated with land disputes will be assessed through the site-specific screening and assessment process included in the ESMF. DAR or contractors will not hire private security forces, but DAR is authorized by law to call upon other government agencies such as the Department of National Defense (DND) and the Philippine National Police (PNP) for assistance to ensure security, peace and order for DAR staff and project workers during the conduct of the surveys and the distribution of the individual titles. DAR has a Memorandum of Agreement with PNP and DND through which DAR can request to be accompanied by government security forces when needed. This agreement and regulations and procedures of the PNP and DND are integrated into a project specific security protocol prepared in accordance with the Bank’s ESS4 (and ESS2). This includes measures to inform and protect community members. The Project’s GRM also covers any incidents concerning the use of government security forces. The protocol is reflected in the ESCP. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project does not finance civil works and aims to minimize economic and physical displacement. The ESA and legal analysis undertaken have identified a number of risks concerning potential economic and physical displacement in relation to the parcelization process in instances where collective CLOAs overlap with areas classified as forest or protected areas and in instances where land occupants are found not to be the right holders to the individual title. It is determined that ESS5 apply to instances where collective CLOAs were erroneously awarded in areas classified as Public Disclosure forest or protected areas while ESS5 or ESS1 apply to instances where people are found not to the eligible land occupant depending on the circumstances. Mitigation and compensation measures for addressing impacts under all instances are included in the Project’s RPF. During validation of collective CLOAs, landholdings that fall within areas classified as forest land or protected areas may be excluded from titling under CARP and instead be subject to tenure arrangements under DENR. The substitution of collective CLOA and individual titles with alternative tenurial rights constitute an attenuation of the land rights of the ARBs. In such cases, the Project will support communities in securing alternative tenurial arrangements and the RPF prepared for the Project includes measures to address potential economic and physical displacement impacts and provisions to prepare site-specific Resettlement Plans (RPs) during implementation. Options include continued cultivation of existing plots, accommodation of alternative land plots, compensation and assistance measures. Current regulations allow awarding of limited tenurial rights (25-year lease or stewardship grants) on portions of forest lands for qualified occupants. In the case of protected areas, the National Protected Areas System (NIPAS) law generally allows restricted access by traditional forest occupants and forest dependent communities to some zones of the protected area. Specifically, it allows economic activities within areas considered as buffer zones. ARBs of parcels falling within officially declared protected areas therefore are expected to retain possession of their parcels subject to existing regulations by the protected area authorities. However, it is possible that some ARBs may be disqualified and lose access to land under the DENR regulations. Such instances are expected to be minimal and alternative land options may be sought to avoid impacts. However, in cases where this cannot be avoided, the RPF includes entitlement and mitigation measures. Feb 24, 2020 Page 11 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) The prevalence of these cases cannot be ascertained until the inventory of collective CLOAs is completed during the first phase of project implementation. The ESA indicates that it could be up to ten percent. Year one activities will be screened to exclude sites involving displacement to allow sufficient time to train local staff to identify risks and prepare RPs when needed. The supplemental assessment of E&S risks and potential impacts that will be prepared during early implementation will propose additional mitigation measures to be incorporated into the E&S documents, including the RPF as needed. Since the collective CLOAs were issued many years back, some of the land parcels within the CLOAs are now occupied by persons who were not the original beneficiary but who may have been tilling, building structures and making improvements on the land. The current occupant could be a buyer of land rights from the original awardee, a tenant/caretaker of the original awardee, an heir, an informal settler with permission from the owner, or an opportunistic encroacher. Because of these potential situations, DAR will undertake a thorough site-specific review of the circumstances of the occupancy and the validity of the transfer from the original awardees to the current occupants before titling. In most cases this would result in a transfer of award from the original ARB to the current occupant. Alternative land plots may also be identified to accommodate occupants and original awardees. However, there is a possibility that the current occupant would be deemed ineligible under the law and hence would be displaced or lose their rights on the parcels they currently occupy. The RPF includes mitigation and compensation measures to address physical and economic displacement in these instances. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Public Disclosure The potential impacts on biodiversity and living natural resources is assessed to be minor to moderate. SPLIT will be implemented mainly in the rural agricultural areas of the country. Due to difficulty in delineating agricultural lands from public forest, some collective CLOAs have been issued within or have overlaps with lands that are officially classified as forest lands or declared protected areas or natural parks. Although these land parcels may have already been occupied during the issuance of collective CLOAs, they will be carved out of the collective CLOA based on the Investigation, Verification and Approval of Surveys (IVAS) of DENR before parcelization to ensure that the succeeding agricultural land use is in accordance with the official land classification. The occupants will be provided with alternative tenurial instruments to ensure continued protection and conservation of the forest land and protected areas. The tenurial instruments issued by DENR, which also provides technical support, include a Community-based Forest Management Agreement (CBFMA) or a Protected Area Community-based Resource Management Agreement (PACBRMA), and will involve the implementation of a Forest Management Plan or a Protected Area Management Plan as the case may be. These cases will be prioritized for DAR and DENR assistance to ensure that the ARBs are not economically displaced (as noted under ESS5, the RPF includes measures to address potential impacts). DENR is embarking on the restoration of degraded ecosystems and has involved interested ARBs in their agro-forestry livelihood and reforestation projects. For the first year, the project will prioritize the so-called "compensable" collective CLOAs over "non-compensable" collective CLOAs. Compensable CLOAs are those that were purchased from private landowners while non-compensable CLOAs are those that were originally public domain lands that were distributed to their occupants under CARP. In connection with the detailed assessment in the first year of implementation mentioned under ESS1, DAR will establish a working group with partners (DENR, NCIP, DA) to review options for forest and protected areas Feb 24, 2020 Page 12 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) management. The working group will lead the preparation of a report of scope of overlaps between CLOAs and forest and protected areas, legal technical review, institutional review, socio-economic review, with recommended measures to address risks and impacts, including cooperation between DENR, DAR and other relevant agencies. The ESMF will be updated to reflect the outcome of these activities. The issuance of individual land titles is expected to encourage owners to invest on integrated pest management, permanent slope protection, water and soil conservation and organic and natural cropping systems which should be guided by sustainable land management and climate-smart agriculture. This will be further supported through the provision of DAR’s training on sustainable agriculture practices and vegetable and fruit processing and marketing approaches, including Farmer Field School and Farm Business School approaches. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is relevant as some of the collective CLOAs may include indigenous peoples. Approximately ten percent of the population in the Philippines is considered as indigenous peoples. They live in several regions but are particularly concentrated in the mountains of Northern and Central Luzon as well as the in island of Mindanao. The land management practices and social make-up of indigenous communities varies significantly. Some collective CLOAs may only have co-owners from the same indigenous group while others may have co-owners from different social groups, including some in mixed communities where some co-owners are non-indigenous. Some groups tend to manage their land on a household basis, e.g. many areas in the Cordilleras, while other groups manage land in Public Disclosure more communal fashions, e.g. in some areas in Mindanao. The project, in partnership with the National Commission for Indigenous Peoples (NCIP), will ensure that indigenous peoples living in the project covered agrarian reform areas will be properly informed, consulted and mobilized to participate in the planning, implementation and monitoring of component activities in accordance with the Indigenous Peoples Rights Act and ESS7. The inclusion and active participation of indigenous peoples in this process will provide them with enhanced tenure security and access to potential economic opportunities. Some CLOAs may include indigenous peoples within Ancestral Domains (ADs). CLOAs in ADs are eligible for titling under CARP if they were issued before the ancestral domain claim was declared. It should be noted that the CARP law was enacted in 1998 while the Indigenous Peoples Rights Act (IPRA) was implemented only starting 2001 when NCIP started delineating and approving ancestral domain claims. CLOAs that are issued after the Ancestral Domain was declared would either remain under tenurial arrangements of the IPRA or if ARBs wish to maintain their collective CLOA or receive individual titles would undergo a free, prior and informed consultation process and NCIP validation. Some indigenous communities outside of ADs may also wish to continue collective land tenure arrangements within the collective CLOA which needs to be verified following a participatory planning and free, prior and informed consent process. Since the project will operate within existing collective CLOAs, it is not anticipated that historical disputes within/between indigenous peoples and settler farmers/agribusiness, miners, over areas of land will be a risk. The collective CLOA is already a secure form of land tenure for the community and its demarcation would have excluded mining and large-scale plantations as the CARP targeted small farmers for agricultural production. Sub-groups within Feb 24, 2020 Page 13 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) a collective CLOA who do not wish to participate would be able to excuse themselves from parcelization and groups, including indigenous peoples, who wish to continue managing the collective CLOAs jointly would be able to continue doing so by excluding themselves from parcelization of the collective CLOA. Nevertheless, conflicts around land is always possible, particularly for indigenous peoples given the commonly strong relationship to land among indigenous communities. The participatory planning process and the provisions of the IPPF have been designed to identify and address such risks. The ESA has assessed potential benefits, impacts and risks concerning indigenous peoples, including legal and institutional aspects. National legislation provides strong protection for indigenous peoples. However, there are a few differences between the national framework and ESS7 concerning the requirements for FPIC, the scope of SA and IPP, disclosure and monitoring. For instance, FPIC is only required under IPRA for indigenous communities within ADs. The IPPF is prepared to include the highest requirements, whether under IPRA or ESS7, in the different circumstances that may be encountered during implementation. FPIC is deemed required under ESS7 as the Project will change the land tenure arrangements for indigenous peoples. For the first year, the project will prioritize the so-called "compensable" collective CLOAs over "non-compensable" collective CLOAs. This will not include areas that overlap with ADs. The supplemental assessment in the first year of implementation will include risks pertaining to indigenous peoples and the IPPF will be updated accordingly. NCIP will be included in the working group undertaken this assessment and related consultations. Public consultations with representatives of indigenous peoples have been undertaken during project preparation Public Disclosure and will continue during implementation as provided for in both the IPPF and SEP. ESS8 Cultural Heritage This standard is relevant, although the risks and impacts can be avoided. The project does not finance civil works and collective CLOAs would normally have identified tangible cultural resources, including areas of cultural or spiritual value to the community, and that subdivision of the collective CLOAs is not expected to impact such resources. Nevertheless, the ESMF includes screening of cultural heritage to ensure that such resources are not affected. ESS9 Financial Intermediaries The project will not involve financial intermediaries. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No Feb 24, 2020 Page 14 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) III. BORROWER’S ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) DELIVERABLES against MEASURES AND ACTIONs IDENTIFIED TIMELINE ESS 1 Assessment and Management of Environmental and Social Risks and Impacts Establish before effectiveness and maintain an organizational structure with qualified staff and 10/2020 resources to support management of E&S risks and the implementation of the E&S documents. Establish and maintain cooperation with partner agencies – DENR, LRA, NCIP, DILG and LGUs – through 10/2020 formal institutional arrangements (e.g. JAO, MOU, MOA). Early implementation limited to three pilot areas with no significant E&S risks. Undertake detailed assessment and consultations of E&S risks and propose additional mitigation measures to be 03/2021 incorporated into E&S documents. Submit assessment report and revised E&S documents for Bank approval. Screen and assess E&S risks and impacts for site-specific Collective CLOAs in accordance with the ESMF and related E&S documents, and, thereafter, provide orientation to beneficiaries (e.g. on their rights and obligations), link beneficiaries to support services, and draft, adopt, and implement plans, when 01/2021 required (see under respective ESSs), in a manner acceptable to the Bank. On a rolling basis during parcelization estimated to start in early 2021. Public Disclosure DAR, in collaboration with DOF, DILG and LGUs, will facilitate the determination of measures and prepare guidelines to support vulnerable households concerning payment of real property taxes (e.g. 12/2020 staggered payments, lower fees). ESS 10 Stakeholder Engagement and Information Disclosure Update (as needed), adopt, and implement the Stakeholder Engagement Plan (SEP), with GRM from 10/2020 project effectiveness. Prepare detailed communication plan for parcelization process, including orientation and awareness 12/2020 raising for beneficiaries. Update (as needed), adopt, maintain and operate a grievance mechanism, as described in the SEP. On 01/2021 a rolling basis during parcelization estimated to start in early 2021. ESS 2 Labor and Working Conditions Update (when needed), adopt, and implement the Labor Management Procedures (LMP) that have been developed for the Project, including occupational, health and safety measures. Apply to DAR 10/2020 staff from effectiveness and contractors during implementation Feb 24, 2020 Page 15 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) Establish, maintain, and operate a grievance mechanism for Project workers, as described in the LMP and consistent with ESS2. Maintain grievance log, include in monitoring reports, which shall be shared 10/2020 with the Bank ESS 3 Resource Efficiency and Pollution Prevention and Management Apply ESMF, prepare CCLOA E&S Performance Checklist and individual CLOA E&S Performance Plans, and facilitate awareness raising and access to training for ARBs on resource efficiency and pollution 01/2021 prevention and control. During impl. starting 2021. Apply the ESMF, prepare individual CLOA E&Social Performance Plans, and facilitate awareness raising and linkage of ARBs to existing IPM programs of DA and DENR. On a rolling basis during parcelization 01/2021 estimated to start early 2021. ESS 4 Community Health and Safety Implement ESMF measures to manage risks and impacts to the community, including code of conduct for Project workers and response to emergency situations, in a manner acceptable to the Bank. During 01/2021 parcelization expected to start early 2021. Adopt and implement security protocol for use of government law enforcement personnel, when required, consistent with ESS4, in a manner acceptable to the Bank. On a rolling basis during 01/2021 parcelization estimated to start in early 2021. Public Disclosure ESS 5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Prepare, adopt, and implement Resettlement Plans in accordance with ESS5 and consistent with the requirements of the RPF, in a manner acceptable to the Bank. On a rolling basis during parcelization 01/2021 estimated to start in early 2021. ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources DAR, DENR, NCIP, DA working group to review options for forest and protected areas management. Prepare report by 03/21 with recommendations to address risks and impacts, incl. appropriate tenurial 03/2021 instruments and cooperation with relevant agencies. Apply ESMF, and above working group recommendations, to screen for CLOAs within PAs, carved out and issued DENR tenure instruments (PACBRMA). Assist community prepare / update PA Management 08/2021 Plans. Starting after first year pilots excl. such areas. Apply ESMF, and above working group recommendations, to screen for CLOAs within forests, carved out and issued DENR tenure instruments (CBFMA). Assist community prepare / update PA 08/2021 Management Plans. Starting after first year pilots excl. such areas. ESS 7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Feb 24, 2020 Page 16 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) Apply IPPF and prepare, adopt, and implement IPPs consistent with ESS7 and the IPPF, including provisions for FPIC, in a manner acceptable to the Bank. On a rolling basis after first year pilots 08/2021 excluding such areas. ESS 8 Cultural Heritage Screen Collective CLOAs in accordance with the ESMF, to ensure the identification and avoidance of impacts on cultural heritage (sites will be excluded from titling). On a rolling basis during 01/2021 implementation estimated to start in early 2021. ESS 9 Financial Intermediaries B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: Not applicable IV. CONTACT POINTS Public Disclosure World Bank Contact: Kathrine M. Kelm Title: Sr Land Administration Specialist Telephone No: 5736+7064 / Email: kkelm@worldbank.org Contact: Maria Theresa G. Quinones Title: Senior Rural Development Specialist Telephone No: 5776+2644 Email: tquinones@worldbank.org Borrower/Client/Recipient Borrower: Republic of Philippines Implementing Agency(ies) Implementing Agency: Department of Agrarian Reform V. FOR MORE INFORMATION CONTACT Feb 24, 2020 Page 17 of 18 The World Bank Support to Parcelization of Lands for Individual Titling (SPLIT) Project (P172399) (P172399) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Kathrine M. Kelm, Maria Theresa G. Quinones Practice Manager (ENR/Social) Susan S. Shen Cleared on 22-Feb-2020 at 19:24:46 EST Safeguards Advisor ESSA Peter Leonard (SAESSA) Concurred on 24-Feb-2020 at 15:22:31 EST Public Disclosure Feb 24, 2020 Page 18 of 18