Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2867 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 25.1 MILLION (US$35.0 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR A Land Administration Project Phase 2 Additional Financing October 25, 2018 Social, Urban, Rural And Resilience Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2018) Currency Unit = SDR SDR = US$ 1 US$ 0.7167 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Henry G. R. Kerali Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager: Jorge A. Munoz Task Team Leader(s): Victoria Stanley ABBREVIATIONS AND ACRONYMS AF Additional Financing AMA Accra Metropolitan Assembly CICOL Civil Society Coalition on Land CIDA Canadian International Development Agency CLS Customary Land Secretariat CORS Continuously Operating Reference Stations CPS Country Partnership Strategy CSAU Client Service Access Unit CSO Civil Society Organizations ESMP Environmental and Social Mitigation Plans ESIA Environmental and Social Impact Assessment FM Financial Management FMS Financial Management Specialist GELIS Ghana Enterprise Land Information System GIS Geographic Information Systems GNSS Global Navigation Satellite System GoG Government of Ghana/Recipient GRM Grievance Redress Mechanism IA Implementing Agencies ICR Implementation Completion and Results Report JS Judicial Service LAP2 Land Administration Project Phase 2 LC Lands Commission LUPMIS Land Use Planning Management Information System LUSPA Land Use and Spatial Planning Authority MOF Ministry of Finance MLNR Ministry of Lands and Natural Resources M&E Monitoring and Evaluation NGO Non-Governmental Organization NPSC National Project Steering Committee NPOC National Project Oversight Committee OASL Office of the Administrator of Stool Lands PCU Project Coordination Unit PDO Project Development Objective PIM Project Implementation Manual PIU Project Implementation Unit PPA Project Preparatory Advance PPP Public-Private Partnership PP Procurement Plan PPSD Project Procurement Strategy for Development RPSC Regional Project Steering Committees RPOC Regional Project Oversight Committees SCD Systematic Country Diagnostic STEP Systematic Tracking of Exchanges in Procurement ToR Terms of Reference TWG Technical Working Group WB World Bank The World Bank Land Administration Phase 2 Additional Financing (P166907) BASIC INFORMATION – PARENT (Land Administration Project - 2 - P120636) Country Product Line Team Leader(s) Ghana IBRD/IDA Victoria Stanley Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P120636 Investment Project GSULN (9355) AFCW1 (6547) Social, Urban, Rural and Financing Resilience Global Practice Implementing Agency: Ministry of Lands and Natural Resources, Land Commission ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Original Environmental Approval Date Closing Date Current EA Category Assessment Category 31-Mar-2011 31-Jan-2019 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) Mar 28, 2018 Page 1 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Development Objective(s) To consolidate and strengthen land administration and management systems for efficient and transparent land services delivery Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 16-May-2016 22-Jun-2016 19-Dec-2016 21-Jun-2017 06-Feb-2018 11-Jun-2018 Progress towards achievement of MS MS MS S MS MS PDO Overall Implementation MU MU MS S MS MS Progress (IP) Overall Safeguards S S S S S S Rating Overall Risk M M M M M S BASIC INFORMATION – ADDITIONAL FINANCING (Land Administration Phase 2 Additional Financing - P166907) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P166907 Land Administration Phase Cost Overrun, Scale Up No 2 Additional Financing Financing instrument Product line Approval Date Investment Project IBRD/IDA 15-Nov-2018 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30-Apr-2022 No Is this a regionally tagged project? Mar 28, 2018 Page 2 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 50.00 46.80 100 % Grants 2.50 2.50 100 % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Land Administration Phase 2 Additional Financing - P166907) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 55.00 35.00 90.00 Total Financing 55.00 35.00 90.00 of which IBRD/IDA 50.00 35.00 85.00 Financing Gap 0.00 0.00 0.00 Mar 28, 2018 Page 3 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 35.00 IDA Credit 35.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Total Amount National PBA 35.00 0.00 35.00 Total 35.00 0.00 35.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Social, Urban, Rural and Resilience Global Practice Contributing Practice Areas Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Mar 28, 2018 Page 4 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Victoria Stanley GSULN Responsible) Procurement Specialist (ADM Sunday Esene Osoba procurement GGOPA Responsible) Robert Wallace DeGraft- Financial Management FM GGOAS Hanson Specialist (ADM Responsible) Anita Bimunka Takura Environmental Specialist (ADM environment safeguards GEN01 Tingbani Responsible) Social Specialist (ADM Charles Ankisiba Social Safeguards GSU20 Responsible) Charlotte Hayfron Team Member AFCW1 Gabriela Itzel Nunez Team Member GSULN Gavin P. Adlington Team Member land admin specialist GMTIC Jorge Luis Alva-Luperdi Counsel LEGAM Linus Benedikt Pott Team Member GSULN Lydia Sam Team Member AFCW1 Mar 28, 2018 Page 5 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Extended Team Name Title Organization Location Geodesy, Cadastre and ICT Mike Cheremshynskyi consultant- FAO Specialist Rex Ahene Land Administration Specialist consultant - FAO Mar 28, 2018 Page 6 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) GHANA LAND ADMINISTRATION PHASE 2 ADDITIONAL FINANCING TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 8 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 12 III. KEY RISKS ..................................................................................................................... 17 IV. APPRAISAL SUMMARY .................................................................................................. 18 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 24 VI. SUMMARY TABLE OF CHANGES .................................................................................... 25 VII. DETAILED CHANGE(S).................................................................................................... 25 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 30 ANNEX 1: DETAILED COMPONENT DESCRIPTION .................................................................. 50 ANNEX 2: SUPPLEMENTAL ECONOMIC AND FINANCIAL ANALYSIS ........................................ 56 ANNEX 3: IMPLEMENTATION COMPLETION AND RESULTS REPORT (ICR) MAIN FINDINGS AND LESSONS LEARNED............................................................................................................... 64 Mar 28, 2018 Page 7 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING 1. This Project Paper seeks the approval of the Executive Directors to provide an additional credit in the amount of SDR 25.1 million (US$35.0 million equivalent) to the Republic of Ghana for the Land Administration Project Phase 2 (P120636, Credit 4870-GH). The proposed Additional Financing (AF) will include an extension of the Project’s closing date to December 31, 2021. The AF was formally requested by the Government of Ghana (GoG) in a letter dated February 13, 2018. 2. The proposed AF would finance additional activities under all four Components. The AF will i) support scaling up of project activities in the customary land sector; and ii) respond to a financing gap to support completion of the activities of the Lands Commission (LC) to achieve the current Project Development Objective (PDO). The proposed investments do not go beyond the original objectives of the Project but would allow more people to benefit from project activities. The proposed AF would also finance a feasibility analysis for potential public-private partnerships (PPP) in land administration that would support the Government of Ghana’s interest in more private sector engagement in the land sector. 3. The proposed refinement of the Results Framework (RF) would better align it with the existing PDO and expected results of Project activities. The RF has been revised to better measure the achievement of the PDO for both land management and land administration, and for both the statutory and customary land sectors. The RF also includes new indicators to measure new activities and revisions to existing indicators to better reflect what is being achieved. The extension of the Project’s closing date is required to allow the Borrower to implement the on-going and additional activities. Therefore, the original IDA credit will be extended until December 31, 2021. 4. All additional activities will be financed entirely from the proposed AF credit with no funding from the GoG. No multilateral or bilateral agencies will provide further co-financing for the Project. 5. Background. At the time of preparation of the Land Administration Project Phase 2 (LAP2) in 2010 to 2011, the GoG had recognized the importance of land issues in its economic development, beginning with the approval of its National Land Policy in 1999 and a first phase Land Administration Project (2003- 2011). Despite the rich natural resource base, land sector issues – especially difficulties in accessing land and insecurity of land tenure – hampered investment, thereby imposing a constraint on economic growth and development. Access to, and the efficient use of, arable land was constrained by weak and contradictory institutional and legal arrangements, lack of information and transparency in the land sector, and unclear tenure arrangements that inhibited transactions and created uncertainty and insecurity on the part of both those who held land and those who sought to acquire it. 6. The original LAP2 was specifically referred to in the World Bank Group’s 2008-11 Country Assistance Strategy (CAS) (Report No. 39822) as a necessary follow-up to the First Land Administration Project (LAP1). Land issues are referred to in-depth under Pillar 1—Private Sector Competitiveness— because access to land and security of property rights were considered key to improving the business environment, addressing gender disparities in land ownership, improving access to credit and promoting fairer and more efficient use of land in rural areas, where the agriculture and mining sectors operate. Page 8 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 7. The activities under the AF are consistent with the current World Bank Group’s Country Partnership Strategy (CPS) for FY2013-161 (extended through FY18) and are directly relevant to Pillar 1 (Improving Economic Institutions) and Outcome 3 (Strengthen Land Administration). The draft Systematic Country Diagnostic (SCD) prepared in FY2018 recognizes land issues as a continuing constraint on growth and development in Ghana and the need for further strengthening of the land administration and land management systems both for statutory and customary land. Access to land and efficient land administration remain binding constraints across all three pillars of the SCD – quality growth, efficient public service provision, and spatial equality. The Project will also help address disaster risks by supporting both climate change adaptation and mitigation. 8. The Project Development Objective (PDO) of the LAP2 is to support Ghana’s efforts to consolidate and strengthen land administration and management systems for efficient and transparent land service delivery. To achieve the PDO, the project was designed to concentrate on removing the business process bottlenecks, promote transparency and address the various challenges with the aim of improving efficiency in the delivery of land services and increasing tenure security. The project design was comprehensive in addressing both land administration and land management issues with four components focused on the various aspects of land administration and management: Component 1: Strengthening the Policy, Legal and Regulatory Framework for Land Administration, with subcomponents - 1.1 Completion of the Land and Land Use and Planning Bills and their Legislative Instruments; 1.2 Partnership with the Judiciary; 1.3 Specific Supporting Studies. Component 2: Decentralizing and Improving Business and Service Delivery Processes, with subcomponents - 2.1 Decentralization of Service Delivery (including support to the customary land sector); 2.2 Streamlining Business Procedures. Component 3: Improved Maps and Spatial Data for Land Administration, with subcomponents - 3.1 Developing policies for surveying and mapping and other spatial activities; 3.2 Preparation of base maps; 3.3 Establishment of Geodetic Reference Network; 3.4 Boundary demarcation; 3.5 Preparation of land use plans; 3.6 Revaluation of properties; 3.7 Street addressing and property identification. Component 4: Human Resource Development and Project Management, with sub-components - 4.1 Human Resource Development; 4.2 Gender Equality; Mainstreaming; 4.3 Communication and Public Outreach; 4.4 Project Management. 9. Project Performance. The performance of the Project has been mixed and has been rated Moderately Satisfactory on both Implementation Progress and Progress towards Achievement of the PDO. While certain components and activities have performed well – those related to strengthening the policy and regulatory framework, support to the customary land sector, land use and spatial planning, street addressing – other activities have struggled – particularly regarding the Lands Commission. 10. Fiduciary and safeguards have been consistently rated moderately satisfactory or satisfactory. Loan covenants have been substantially complied with. Regarding the submission of periodic financial reports, LAP2 has complied fully in their submissions of acceptable IFRs, in meeting the exact deadline date. Throughout implementation, the quality (content, format and depth of information) of the IFRs have 1 Report No. 76369. Page 9 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) always been satisfactory. Also, Procurement Post Reviews assessed procurement implementation under LAP2 generally to have been in accordance with the procedures agreed in the Financing Agreement. 11. With regards to the submission of audit reports, the Project has satisfactorily complied with the submission of acceptable audit reports and management letters. Presently there are no outstanding audits or any overdue reports. The most recent audit and management letter for calendar year 2017 noted that there were no significant internal control lapses which could adversely have affected the quality and reliability of the financial statements. 12. Progress towards the PDO. A number of activities have contributed to the achievement of the PDO of efficiency and transparency of the land administration and management systems, including: a) As a first step to achieve important improvements in efficient and decentralized land administration service, the LC implemented a one-stop-shop for customers in need of land services - the Client Service Access Units (CSAUs). The CSAU is the one-stop-shop computerized front office with the goal to improve land administration services, streamline the process of land transactions, and reduce the time for transactions. The seven CSAUs are operational in five regions (offices in Upper East, Northern, Eastern, Greater Accra and Western). b) LAP2 supported the establishment of 51 Customary Land Secretariats (CLSs)2 and ascertainment3 of customary law for 8 areas which has been validated by those communities. As a result of the CLSs more than 70,000 rights have been recorded providing tenure security for those rights holders and better information for the customary authorities. There have been some 434 disputes resolved among rights holders contributing to community harmony. c) Support from LAP2 has led to: i) the development of the national and regional (Greater Accra and Ashanti) spatial development frameworks and legal instruments creating the Land Use and Spatial Planning Authority (formerly Town and Country Planning Department); and ii) the creation of Land Use Planning Management Information System (LUPMIS) which provides significant functionality for planning and issuance of planning permission, among other functionalities. d) With support from LAP2, the Accra Metropolitan Assembly (AMA) has completed the digital mapping of all ten sub-metropolitan areas included in the program, assigned and installed 3,782 new street names and mounted 6,780 poles and 12,952 nameplates. Also, 125,000 parcels have been identified and numbered in the digital database. This is a significant achievement with many valuable uses (emergency response for example) and has resulted in the identification of 100,000 more properties to be included in the next re-valuation for taxation. e) Support to the Judiciary has led to six more dedicated Land Courts in Accra, three more regional Land Courts in Sekondi, Kumasi and Tamale, and one sub-regional Land Court to serve the port city of Tema. To improve efficiency, the High Court (Civil Procedure) Rules, 2004 (C.I. 47) was amended by the High Court (Civil Procedure) (Amendment) Rules, 2014 (C.I. 87) to allow Written Witness Statements, which came into force on 4 March 2015. The experience with the Written Witness Statement has helped to reduce the time for resolving land cases from an average of 24 months to about 10 months. A total of 645 Judges and key staff of the Judiciary received training 2 37 were established under LAP1, 51 under LAP2, bringing the total in the country to 88. 3 In this case the customary law or practice is generally un-written so the process of ascertainment was to document the customary law/practice and then validate with the community, customary authorities, etc. so as to have a written record of the customary law/practice. Page 10 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) and capacity building under the Project. This includes most of the Judges, Staff Lawyers and Mediators currently working in the specialized land courts. Rationale for Additional Financing. 13. The complexity of the Project design with multiple Implementing Agencies (IAs) – Ministry of Lands and Natural Resources (MLNR), the Lands Commission (LC), Office of the Administrator of Stool Lands (OASL), Land Use and Spatial Planning Authority (LUSPA), the Accra Metropolitan Assembly (AMA), and a Project Coordination Unit (PCU), as well as beneficiary agencies such as the Judiciary – has resulted in a varied implementation and a lack of focus on the land administration system, in particular. But the land administration activities were also the most impacted by the financing gap (see below), meaning that funds were not available to fully complete these activities. 14. The Project was originally costed at US$72 million with the funding sources expected indicated in the table below. However, not all constituents were able to fulfill their obligations due to various reasons. Consequently, the actual Project financing was reduced by 30 percent. Original LAP2 Financing Source Expected Amount Actual Amount (US$ (US$ million) million) IDA 50.0 46.794 Recipient 5.0 1.20 Users 2.0 0.00 Canadian International Development Agency (CIDA) 15.0 2.505 TOTAL 72.0 50.49 15. All this required significant reductions in planned activities particularly those managed by the LC, including a reduction in the scope of Ghana Enterprise Land Information System (GELIS); reduced coverage of the base map from four regions to two; and cancellation of the geodetic network installation. 16. The AF will help to achieve the PDO in full through scaling up of project activities in the customary land sector and responding to the financing gap to support completion of the activities of the LC. The scaling-up of activities in the customary land sector would further improve service delivery and transparency for the estimated 80 percent of land holders who are under customary law. Further streamlining of business processes and further development of GELIS will further improve land administration services provided by the LC through decentralization and digitization. Completing the base mapping for Ghana (orthophotos) and establishing the link between GELIS and LUPMIS will support improved land use planning and land management activities. Finally, the planned integration of land records for all types of land in GELIS will benefit the whole of Ghana as more clarity and transparency in land holdings is available for planning, development projects, environmental management and other uses. 4 As of March 31, 2018; changes in the amount are due to exchange rate differences. 5 As of closing of the TF account on April 30, 2015 Page 11 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 17. The AF will also continue to support capacity building and institutional strengthening in the land sector, continue and scale up the focus on encouraging women’s land rights, continue public education and awareness raising, and continue project management activities. Finally, the AF will finance a feasibility analysis for potential PPPs in the land sector as a continuation and scaling up of the Supporting Studies activity under Component 1. II. DESCRIPTION OF ADDITIONAL FINANCING 18. While the PDO remains the same, to consolidate and strengthen land administration and management systems for efficient and transparent land service delivery, some changes have been made to the PDO indicators. The original PDO indicators did not do justice to the complexity and breadth of the project design, focusing instead only on the land administration activities and primarily on efficiency. 19. The revised PDO indicators for the AF take a broader view of land administration and management and are as follows: a. To measure more efficient land administration: Reduced turn-around time for transactions for title registration; Reduced turn-around time for transactions for deeds registration in the CSAU areas b. To measure more efficient and transparent customary land services: Increased revenue collected in consolidated CLS areas c. To measure more efficient and transparent land management system: Increased number of users of land data (government, private and public) 20. Transparency in land administration and land management is difficult to capture in an indicator however the AF includes a number of activities aimed at improving the transparency of land data and services. Plans for a public portal for GELIS will provide information about fees and charges, standards and procedures as well as access to publicly available property data (according to the law). Customer satisfaction will also be tracked as an intermediate results indicator. 21. Certain activities that were defunded due to the financing gap will be completed now (Component 3) and others will be scaled up (Component 2). Component 2 focuses on truly strengthening land administration in the LC and customary land management, while Component 3 activities complete the needed spatial data for both land administration and land management. Components 1 and 4 continue to provide support activities. The following table provides an overview of the Components and Sub- components of the AF (further details can be found in Annex 1). 6 Component 1: Strengthening the Policy, Legal and Regulatory Framework for Land Administration (US$0.19 million of the AF amount) Subcomponent 1.1 Completion of the Land and Continue with focus on further simplification 6 For further data on the total proposed costs by component, please see the Datasheet. Please note that the ‘current costs’ are based on the original costing done for LAP2 which totaled $ 71 million, although only $50 million was provided in IDA financing. Page 12 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Land Use and Planning Bills and their Legislative and process improvement of the regulatory Instruments framework for land administration; implement the new Land Bill if approved Subcomponent 1.2 Partnership with the Completed Judiciary Subcomponent 1.3 Specific Supporting Studies Continue with focus on a market analysis and feasibility studies for a possible Public Private Partnership (PPP) arrangement for land administration services Component 2: Decentralizing and Improving Business Service Delivery (US$16.0 million of the AF amount) Subcomponent 2.1 Decentralization of Service Scale up the CSAU front office to the remaining Delivery five regions in Ghana, and continued support to establish 20 new CLSs and to consolidate the CLS model in 10 areas including deployment of a CLS application for recording land rights and other functions and preparation of local plans. Support to the CLS will include technical assistance, training, manuals, records management and archiving strategy and processes, process improvements and ongoing public awareness. Subcomponent 2.2 Streamlining Business Focused on the LC and continuous reengineering Procedures of business processes, upscaling the GELIS with the de-scoped functionality (Public and Corporate Portals with relevant functionalities; Stool Land Administration Module; Land Valuation module and functionality), linking with LUPMIS, as well as on-going improvements as needed. This sub-component also includes the scanning of paper records and conversion from manual to digital data into GELIS. This subcomponent will also include support for clearing the backlog in Land Registration and support the development of a proper records management and archiving strategy, manuals, protocols and training for the staff of the Lands Commission. Component 3: Improved Maps and Spatial Data for Land Administration (US$13.73 million of the AF amount) Subcomponent 3.1 Developing policies for Scale up and implement spatial data policy surveying and mapping and other spatial activities Page 13 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Subcomponent 3.2 Preparation of base maps Financing gap - prepare digital orthophotos and core vector data set for the entire country. Sub component 3.3 Establishment of Geodetic Financing gap - support the feasibility study for Reference Network private sector to establish the geodetic reference network (Continuously Operating Reference Station (CORs) Network). Subcomponent 3.4 Boundary Demarcation Piloted but no further activity planned National and regional development frameworks Subcomponent 3.5 Preparation of land use plans completed, no further financing planned Subcomponent 3.6 Revaluation of Properties On-going activity but no further financing planned Subcomponent 3.7 Street addressing and Concept piloted and will be rolled out by property identification government in other LGAs Component 4: Human Resource Development and Project Management (US$4.25 million of the AF amount) Subcomponent 4.1 Human Resource Continue HR development to support scale up Development and other activities. Subcomponent 4.2 Gender Equality Continue and scale up with more focus on Mainstreaming encouraging women to document their land rights. Subcomponent 4.3 Communication and Public Continue and scale-up with more focus on public Outreach education on land administration and managements systems. Subcomponent 4.4 Project Management On-going 22. Implementation Arrangements: Project implementation arrangements have functioned well, however, to ensure successful implementation of the AF, some adjustments are needed. The GoG feels strongly that project implementation should be mainstreamed to the extent possible to build capacity of government. In addition, as the bulk of the activities are planned to be implemented by, and for, the Lands Commission, the LC will take over as the lead implementing entity. The standalone PCU will be disbanded and a Project Implementation Unit (PIU) will be established within the LC with the key functionalities of project coordination, procurement, financial management, safeguards supervision, and monitoring and evaluation (all with terms of reference satisfactory to the Bank). The existing specialists in the PCU (Project Coordinator, FM specialist, procurement specialist, technical specialist) will be recruited on a sole source basis for key functions in the new PIU, to make use of the existing capacity and experience. The recruited specialists in the PIU will be supplemented by staff from the LC and potentially other government agencies. Monitoring and evaluation will be managed by the existing M&E staff in the LC, where LAP2 has built capacity. A qualified safeguards specialist consultant will be recruited by effectiveness and will be supported by LC staff to build internal capacity. The assigned LC staff will both support project implementation and bolster the small number of consultants. This arrangement will also allow for government capacity to be built through the AF implementation. Page 14 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 23. To facilitate implementation, a Project Leader will be appointed by government from the Director level of the LC to coordinate the project activities. He/she will be supported by a full time Project Coordinator hired under the AF, and by the PIU. Technical Working Groups (TWGs) would also be set up for the key activities (base mapping, CLS consolidation, etc.), and the heads of the TWGs will be existing government staff who will be assigned this role. The management of LC, OASL and LUSPA will appoint the heads of the TWGs. For coordination with the other institutions involved in implementation – OASL, LUSPA – a Project Management Committee (PMC) will be set up with representation of those IAs as well as LC and MLNR. This PMC has essentially been functioning throughout LAP2 (and the preparation of this AF) as an ad-hoc structure and will simply be formalized. The Project Implementation Manual (PIM) is being updated to reflect these new arrangements and detail roles and responsibilities and the work processes. 24. The project governance structure will be simplified. The National Project Oversight Committee (NPOC) will be streamlined in terms of representation and will continue to be chaired by the Minister of MLNR. Membership will include all implementing agencies (LC, OASL, LUSPA) as well as representatives from the Vice President’s Office, Senior Minister, Ministry of Finance and others as specified in the Operational Manual. The NPSC will continue to be responsible for policy guidance and review, approval of the annual workplan and budget, annual performance reviews, and resolving major implementation issues. The original project envisaged Regional Project Steering Committees (RPSC) which were never set up as functioning structures but ad-hoc and called upon when needed (for instance in Kumasi for the Regional Land Sector office). The RPSC will not continue as part of the Project governance structure, however, regional and local consultations and working groups will continue, on an ad-hoc basis, as needed according to project design. 25. The above changes in implementation arrangements and simplification of project governance will result in some changes to loan covenants to reflect the following: a) Discontinuation of the RPSC; and b) The establishment of a PIU under the LC. 26. The AF will be implemented over three years beginning in 2019 through December 31, 2021. As the AF will take the overall project implementation period beyond 10 years (from March 2011), an Implementation Completion and Results Report (ICR) has been prepared for the Project results up to March 2018 and found the Project to be Moderately Satisfactory, consistent with the latest Implementation Status and Results Report (ISR). The ICR was submitted to the World Bank Board of Directors in October 2018 and disclosed. The key findings and lessons learned from the ICR have been incorporated into the AF, including revisions to the PDO indictors to better track overall achievement of the PDO, a narrowed focus on the LC and back office functions, ensuring that ICT development is properly supported, and not relying on external funding sources. More details on the findings of the ICR and the AF’s approach are included in Annex 3. 27. Sustainability. The recently completed ICR for LAP2 has outlined several areas where more work is needed to attain sustainability of both the institutions and the reforms of the land sector. These include further support to OASL and consolidation of the CLS model and further support to the LC to build capacity for managing and sustaining the base maps and land administration services and support to LUSPA for the financial sustainability model for the preparation of local plans. While the CSAUs have improved services Page 15 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) for customers through a streamlined front office, the AF will support streamlining the back-office functions including the rollout of GELIS. But more will be needed, including further business process re- engineering, training and additional efforts to eliminate the backlog in title registration, including changing the culture of work in the LC. The AF will support these activities as well as building public awareness and customer feedback mechanisms to ensure that citizens are engaged and hold the LC and CLSs accountable. The Government’s interest in engaging the private sector in land administration and management will also be supported under the AF. This will include building the financial sustainability models for both land administration and land management. Cross-cutting issues. 28. Gender. The LAP2 Gender Mainstreaming Strategy was developed in 2009/10 to respond to national and international commitments of the GoG on gender equality. The objective of the Strategy is to mainstream gender into the Land Administration Project and its associated processes. It also seeks to promote a coherent and sustained approach to addressing women and men’s concerns for equitable development in relation to land administration through gender-sensitive data-gathering, participation and in the design, implementation and monitoring processes of the Project. 29. The Gender Strategy recognized that women’s access to land was limited by male-centered kinship institutions and authority structures, unclear, plural legal systems of land tenure, male dominated inheritance systems, and social norms. In addition, formal legal procedures were too complex, costly and time-consuming. High levels of illiteracy, and lack of knowledge and awareness of land law and processes also contributed to women’s lack of access and documentation. To implement the Gender Strategy, LAP2 put in place methodologies for disaggregated data for men and women, and resources and training programs to support the goals of gender equity. Five gender equality desks were established, and disaggregated data is reported regularly. Twenty civil society organizations (CSO) have been involved in training on gender equity issues for land. Awareness has been raised among both land administration staff and customary authorities, however not among the larger public. In addition, most activities have been passive (gender desks) rather than active in changing attitudes and perceptions, as well as practice. Consequently, the overall impact on the percentage of women being registered has stalled at about 30 percent of transactions. For the AF, to better address the gaps recognized by the Gender Strategy, the sensitization and training of women, communities, traditional authorities and government officials will be increased, and greater emphasis placed on actively registering women as co-owners (this is also supported by changes in the Property Rights of Spouses Bill). The Project will continue to closely monitor rights recorded by CLS and by the CSAUs disaggregated by gender. The Project will also assess public awareness and knowledge for both men and women. 30. Citizens Engagement. Citizens and stakeholder engagement are key to a successful land administration system. If property owners recognize the value of registration and registration is affordable and efficient, their participation in the system will ensure that the data is maintained every time there is a sale or other transaction; and the fees they pay will contribute to the sustainability of the system. LAP2 has engaged citizens in the areas where CLSs have been established to educate and inform citizens about the CLS concept and involve citizens in the CLS process. Under the AF this engagement with citizens will continue and be strengthened with a focus on women’s land rights and full participation of the community. A stakeholder engagement strategy will be designed as part of the public awareness and Page 16 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) communications strategy to be financed under Component 4. The AF will support setting up mechanisms for regular feedback provision from customers and citizens and an indicator on customer satisfaction with the services of the CSAUs and CLSs has been included in the Results Framework. The Civil Society Coalition on Land (CICOL) has grown to 70 non-governmental organizations and is a key partner in implementation and represented on the NPOC. CICOL will continue to be represented on the NPOC and collaborate actively with the Project. Funds have been set aside for further engagement with CICOL and to grow the number of NGOs and civil society organizations that are trained and sensitized on land issues, with a focus on women’s land rights. 31. Climate Change. Climate change is having a detrimental impact on Ghana’s agriculture, food security and poverty reduction. Ghana is susceptible to floods, drought (particularly in the north) and sea level rise given the high percentage of the population (25 percent) along the coast. Sustainable urban planning and land use management require good spatial data which the AF will directly contribute to with digital orthophotos (base map) for the entire country (Component 3) and inter-operating the GELIS and LUPMIS to be able to share spatial and other data for planning purposes (Component 2). Improving registration services for both statutory and customary land rights (Component 2) will improve climate disaster recovery in cases of temporary displacement as it allows people to relocate without fear of losing their property. It will also provide official information about the property location, size and ownership that might be needed as evidence in cases of complete loss of property or property boundaries after climate related disasters and in related disaster insurance claims. In addition, land rights and improved tenure security generally lead to greater investment in the land and better stewardship of land resources (including water and forest). 32. Maximizing Finance for Development (MFD). The Government of Ghana (GoG) is actively promoting private sector participation in all sectors of the economy, including the land administration sector. The GoG is interested in pursuing a Public-Private Partnership (PPP) or other private sector financing arrangement for the land sector. Therefore, the AF will finance the preparation of the market analysis and feasibility studies for a possible PPP arrangement for land service delivery. The PPP law is currently pending approval, and therefore there are inherent risks with PPPs however, the Government has put in place mechanisms to reduce this risk. The rationale for this activity with private sector participation is reasonable. This is a function that is successfully performed by the private sector in other countries and costing and implementation models are available. Furthermore, the AF will not support any surveying for systematic registration, for which the CORS would be needed. Therefore, the risk that this PPP might not be successful is minimized and impact on the overall project outcomes is limited. However, if successful this private sector financing arrangement could act as an example for other private sector/PPP initiatives in the land sector. III. KEY RISKS 33. The overall risk rating remains Substantial. The main risks are Political and Governance, Technical Design, and Institutional Capacity. 34. Political and Governance risk is moderate. While this risk is rated moderate, governance in the land sector remains complex. Customary and statutory land rights are often overlapping in Ghana. The land sector reforms are a high priority of the Government and their attention to the sector and related Page 17 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) issues has meant increased scrutiny of all activities and high expectations. This is a positive development and has been supported by key management changes in the LC and government commitment to monitor the Project at a high level. The additional attention from multiple high-level officials including the Vice President’s Office, the Senior Minister and the Minister of Lands and Natural Resources (MLNR) brought commitment and consensus and is expected to lead to smoother implementation and improved results. The NPOC chaired by the Minister (of MLNR) will offer an opportunity for regular communication and discussion among the many interested parties and this format worked successfully during the implementation of LAP2. 35. Technical design and Institutional Capacity risks are Substantial and interlinked. The technical design remains complex and the institutional capacity limited. However, the AF will implement a more limited set of activities with a focus on those implemented by the LC. The support to the customary sector will be implemented by OASL and some activities related to planning and spatial data policy by LUSPA. The capacity built under LAP2 remains and capacity building activities will continue according to the human resource assessments developed during the original Project. The main technical staff remain in their positions and the few changes made by the government have installed better qualified staff in key management positions in the LC. Contract management skills are particularly needed, and the Procurement Strategy for Development includes specific recommendations for training and Technical Assistance (TA) support for quality control and supervision of major contracts – base mapping, GELIS, etc. This supervision support is costed as part of the AF procurement plan. In addition, the AF will also target staff training to accompany the rollout of GELIS that will focus not only on the ICT but also on the revised business processes and new way of working in the back office. IV. APPRAISAL SUMMARY A. Economic and Financial Analysis 36. The original EFA for LAP2 outlined the expected benefits of the Project as: (i) improved land tenure security; (ii) improved efficiency in registration systems and service delivery; and (iii) provision of better quality and cheaper land information. Empirical studies undertaken internationally indicate, while not uniformly, that land tenure security and efficiency in land transactions can contribute positively to: (i) increased incentives for investment and productivity; (ii) increased access to more and cheaper credit which would lead to increased investment and productivity; and (iii) an overall increase in productivity as land moves from less efficient to more efficient producers through rental and sales markets. This EFA for the AF builds on that original model. 37. As with the original Project, the economic impact of the AF is wide, varied and very difficult to quantify largely as a result of complexities in attribution. The components of the AF suggest that two main types of benefits could be obtained from the investment: benefits from the provision of spatial land information (related to component 3) and benefits from efficiency in land administration (related more to component 1, 2 and 4). 38. This economic analysis as with the original Project does not estimate the benefit from the Efficiency in land administration. Although some data is now available, the methodologies for the quantifications of these benefits have not been fully developed and data collected is still limited. The Page 18 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) analysis is restricted to the quantification of the benefits from the provision of spatial land information. It must be noted that there is a causal relation between the provision of spatial land information and efficiency in land administration and therefore providing estimates for the former invariably gives us some minimum estimates of the economic benefits of the AF. 39. The economic and financial analysis of the LAP2 AF indicates that investment in the project is economically and financially efficient. In terms of economic viability, the Economic Rate of Return (ERR) of 15 percent for the base year scenarios is quite acceptable while the cost-benefit ratio of 1.49 indicates that for every dollar invested, a benefit of $1.49 will be obtained. The NPV of US$ 14.54 million indicates that over the 20 years period, the discounted cost of the Project is more than the discounted benefits by US$ 14.54 million. All the efficiency parameters considered improve for the other scenarios. 40. With regards to the financial analysis which is based on increased revenue to the LC, the base scenario resulted in an FRR of 27.9 percent, a cost- benefit ratio of 1.28 and an NPV of US$ 118.62 million. Sensitivity analysis using cost escalation suggested that it is only when cost escalates by about 97 percent that the project will reach switching value, where the Financial Rate of Return (FRR) is equal to 10 percent and declines thereafter. Further details can be found in Annex 2. B. Technical 41. The activities to be supported under the AF build directly from the original LAP2 project design and scope, begun under the Land Administration Project Phase I, in some cases scaling up successful activities and in other cases filling in where the financing gap left the original objectives un-met. The AF activities continue to be relevant to the GoG’s needs and priorities as outlined in the 1999 National Land Policy. The AF supports the overarching policy direction of the GoG on land administration as contained in the Coordinated Program of Economic and Social Development Policies 2017-2024: An Agenda for Jobs: Creating Prosperity and Equal Opportunities for All, which seeks to ‘Fully decentralize the Lands Commission, and digitize its operations to speed up services, enhance the accuracy of land certificates and ensure high standards of land data security’ (pp. 92). 42. Land administration is a key public infrastructure supporting property rights around the world. While the private sector has an important role to play in supporting land administration, the core business remains a public service for which public financing is appropriate. Nonetheless, the AF will explore options for private sector financing through the market analysis and feasibility study for the CORS network and other land service delivery. 43. The Bank has been a partner throughout the implementation of LAP1 and LAP2 and brings a wide range of experience from around the world on land administration and management activities. The GoG has requested that the Bank continue its support and collaboration to bring LAP2 to a successful close. C. Financial Management 44. As part of the requirement for processing the Project Preparation Advance (PPA) and the Additional Financing (AF), the Bank conducted an FM Assessment of LAP2. The last detailed FM review was done in October 2017 and overall the FM performance was rated Satisfactory, whilst the risk rating Page 19 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) is moderate. The financial management review concluded that there are financial management systems for the LAP2 and that these systems are adequate and meet the minimum requirements as per Bank Policy Investment Project Financing. Consistently throughout implementation of LAP2, financial management performance has been satisfactory, and this is attributed to the competence and skills of the Financial Management Specialist (FMS) (Project Accountant) who heads the Account Unit and the oversight and supervisory roles performed by the Project Coordinator and the Financial Controller (FC) of MLNR. This is evident by the project complying fully with the financial covenants of submission of quarterly reports and audit reports. 45. Under the AF, there will be no significant changes in the existing FM arrangements and as such the focus is to provide an overview of the existing systems and the extent of compliance with IDA financial covenants. To help support implementation and mitigate any risk it is proposed that the existing arrangement continue, and a competitively recruited FMS/Consultant is maintained. Under this arrangement the FMS shall work with the GoG staff and ensure that there is transfer of skill and knowledge. The recruited FMS shall be an integral part of the Project Implementation Unit (PIU) to ensure that there are no fiduciary risks associated with incurring expenditure and also reporting adequately on the uses of project funds. 46. Even though the implementation arrangements have been slightly modified with the core functions and most of the proposed activities to be implemented by the LC, this arrangement will not pose any new fiduciary risk to the FM arrangements. As part of the original credit facility, in line with the use of some aspects of the country systems, the overall financial management responsibility of the project has been under the direct supervision of the Financial Controller of MLNR. The Financial Controller of MLNR will have overall fiduciary responsibility for all financial management aspects of the Project, nevertheless the routine daily transactional processing and reporting will be assigned to a fully dedicated Financial Management Specialist (Project Accountant). 47. Disbursement Arrangements. The Disbursement arrangements will follow the original arrangements established under the original LAP2. The proposed disbursement arrangement for the AF is to use a single Designated Account (DA) (denominated in US dollars) and specifically opened at the Central Bank (Bank of Ghana), under the direct responsibility of the Chief Director, MLNR but managed and operated by Financial Controller of MLNR. The Designated Account will initially be used for the PPA and subsequently when the follow-on credit is declared effective this same designated account will be transitioned as the main project designated account. Disbursement arrangements have been designed in consultation with the Borrower after considering the assessments of the Implementing Agency’s FM capacities and anticipated cash flow needs of the operation. Proceeds of the financing both for the PPA and the follow-on credit will follow the standard Bank procedures for Investment Project Financing, for use by the Borrower for eligible expenditures as defined in Financing Agreement. 48. Based on the assessment of financial management systems, the proceeds for AF will be disbursed to the project using report-based disbursement procedures. Interim Unaudited Financial Reports (IFRs). The IFRs (including the ‘procurements subject to prior reviews’ and ‘designated account reconciliation statement’) will also serve as the basis for withdrawals from the Bank. The initial disbursement will be based on the consolidated expenditure forecast for six months, subject to the Bank’s approval of the estimates. Subsequent replenishments of the DA would be done quarterly based on the forecast of the Page 20 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) net expenditures for the subsequent half-year period. Additional details will be provided in the Disbursement Letter. Disbursement Categories Category Amount of the Percentage of Financing Expenditures to be Allocated Financed (inclusive of Taxes) (1) Goods, works, consulting 33,170,000 100% services, non-consulting services, training and operating costs under the project. (2) Refinancing of PPA 1,830,000 Total 35,000,000 49. Audit Arrangements. The audit arrangements will follow the original arrangements established under the LAP2. In line with its mandate and the Audit Service Act, 2000 (Act 584) the Auditor General is solely responsible for the auditing of all funds under the Consolidated Fund and all public funds as received by government ministries, agencies and departments and generally the capacity of the Audit Service of Ghana is assessed as satisfactory. In this regard, and consistent with the use of country FM systems, the Audit Service of Ghana will conduct the audit of the Project’s financial statements. However, if for any reason they are unable to do so, the Project, in consultation with the Audit Service, will follow the IDA procurement process to competitively select an audit firm. D. Procurement 50. Procurement will be carried out in LC, LUSPA and OASL (implementing agencies -IAs). The procurement arrangement has been assessed as Moderately Satisfactory and the procurement risk is rated as Moderate. Some of the mitigations agreed with the implementing agencies include the engagement of a Procurement Specialist in the PIU to support the LC and to provide quality assurance on procurement implementation in LUSPA and OASL and adoption of a contract management strategy for each procurement activity to ensure that they are delivered in an efficient and effective manner. 51. Procurement under the AF will be carried out in accordance with the following World Bank procedures: (a) the World Bank Procurement Regulations for IPF Borrowers (July 2016, revised in November 2017 and August 2018), and (b) “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011, and other provisions stipulated in the Financing Agreements. Page 21 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 52. The procurement function under the AF will be mainstreamed in LC, LUSPA and OASL, however, MLNR and LC will have overall responsibility for coordination of the project. The IAs will initiate procurement processes and be responsible for preparation of TORs and specifications, while the PIU in the LC will facilitate the procurement processes. The assessment revealed that the implementing agencies participated in the implementation of LAP1 & 2 but that the Procurement Officers are not conversant with the new Procurement Framework. 53. The main procurement risks and weaknesses identified include (a) lack of adequate procurement capacity in each of the agencies, (b) delays in taking procurement decisions and making payments due to extended approval thresholds and (c) lack of knowledge of World Bank Procurement Framework for which all implementing agencies are not acquainted. To mitigate these risks, all the major procurement activities will be processed by LC, which will be supported by a Procurement Consultant. The Procurement Consultant will strengthen LC’s capacity to implement the project using the Procurement Framework and will provide handholding support to LUSPA and OASL. The World Bank will provide hand-holding and procurement capacity building support during implementation support missions, which will take place at least once a year. The World Bank will also provide training on the use of Systematic Tracking of Exchanges in Procurement (STEP). It is expected that at the end of the AF, procurement capacity in the implementing agencies will have improved. Based on the assessment, the procurement risk is rated Moderate. It is expected that after implementation of the mitigation measures, the procurement risk is expected to reduce to Low. 54. The following mitigation measures have been discussed and agreed during the assessment: Procurement Mitigation Measures Tasks Responsibility Due Date 1 Engage a Procurement Consultant to LC Process support LC and to provide quality underway assurance on procurement implementation in LUSPA and OASL 2 Train the procurement staff of LC, LUSPA WB Immediately and OASL on the World Bank’s after AF Procurement Framework effectiveness 3 Train IAs’ staff on the use of Systematic WB Immediately Tracking of Exchanges in Procurement after AF (STEP) tools, which is required to effectiveness manage procurement transactions and related documentation under Bank- financed IPF projects. 5 Update procurement manual of the LC Prior to AF project to take cognizance of the new effectiveness implementation arrangement 6 Develop contract management strategy All IAs Continuously for each procurement activity to ensure that each contract is efficiently and Page 22 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) effectively managed. 7 Provide capacity building for the LC & PPA Continuously procurement staff 55. A draft Project Procurement Strategy for Development (PPSD) for the Additional Financing has been prepared. The Bank has reviewed the PPSD and it was cleared by the Bank on October 28, 2018. The PPSD has benefited from the market analysis recently conducted as well as lessons learned in the implementation of ICT systems, such as GELIS, LUPMIS and Ghana Integrated Financial Management Information System (GIFMIS), and the contracting of Orthophotos under the original project. These lessons will ensure that the project is not exposed to the same procurement risks in similar activities under the Additional Financing. The final version of the PPSD agreed during negotiations will be disclosed on the Bank’s external website. 56. Consistent with the PPSD, an initial Procurement Plan has been developed and agreed to during negotiations and dated October 19, 2018, covering the activities under the AF. The Procurement Plan will be updated as necessary in agreement with the Bank to reflect the project’s actual implementation needs and improvements in institutional capacity. E. Social (including Safeguards) 57. Stakeholder Participation: Under LAP2 a stakeholder analysis was conducted to facilitate engagement and participation of key stakeholders on the project. This engagement will be continued under the AF. A stakeholder engagement strategy will be designed as part of the measures to improve public awareness and communication. 58. Social safeguards implementation and capacity: The activities under the AF includes the construction of two new office spaces in two regions (Central and Volta) to facilitate the establishment of CSAUs. The sites were clearly identified by the GoG for the new buildings. The World Bank Operational Policy (OP) 4.12 Involuntary Resettlement remains triggered under the AF7 and the GoG has prepared an Environmental and Social Impact Assessments (ESIA) and Abbreviated Resettlement Action Plans (ARAP), disclosed on September 26, 2018 and October 3, 2018 respectively, which assessed the social risks and impacts associated with the relocation of current users/occupiers of the land at the selected sites. The ARAP for the Cape Coast CSAU office site has identified four (4) Project Affected Persons (PAPs) who are using the land for farming for supplemental food. The four PAPs have been consulted and will be compensated appropriately for their losses and the LC will assist them to find new land and provide land rent for three years. The LC and PIU will monitor the situation of the PAPs over three years to ensure that it is consistent with the terms of the ARAP. An ARAP implementation completion report will be prepared and disclosed before the works for the office buildings commence. A Grievance Redress Mechanism (GRM) and plan for monitoring and evaluation throughout the project has been prepared. 7 While no new safeguards policies were triggered by the AF, new documents needed to be disclosed for both the OP 4.12 Involuntary Resettlement and OP4.01 on Environmental Assessment. In order to disclose these new safeguards related documents through the World Bank Operations Portal, it was necessary to check “yes” for “change in safeguards policies” in the Project Paper datasheet. Page 23 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 59. Recipient capacity to implement safeguards: During LAP 1 and LAP 2 implementation of safeguards was done by specialists at the PCU under the MLNR (who have since left the Project). A new Specialist will be hired by the LC to continue to supervise safeguards related issues. The Safeguards Specialist will be hired by effectiveness of the AF. In addition, the LC will provide at least one staff member to be seconded to the PIU and support the Safeguards Specialist and build capacity within the LC. F. Environment (including Safeguards) 60. The environmental assessment category for the additional finance has been maintained as Category B (Partial assessment). The activities under the AF include the refurbishment of existing offices for the establishment of CSAUs in three selected regions. It also includes the construction of new buildings in the Central and Volta regions also for CSAUs. Since the investment locations are known, the team has prepared the relevant safeguards instruments (Environmental and Social Impact Assessments (ESIAs) and Environmental and Social Management Plans (ESMPs) and they have been disclosed prior to appraisal in fulfillment of the environmental assessment requirements of OP4.01. The areas where the refurbishment and construction will take place have been assessed and there are no critical habitats or natural resources which might be affected because of this development. The ESIAs are accompanied by ESMPs to be incorporated into the bidding documents for contractors during the works. 61. The environmental policies triggered for the AF are OP4.01 on Environmental Assessment. During LAP 1 and LAP 2 implementation of safeguards was done by specialists at the PCU under the MLNR (who has since left the Project). A new Specialist will be hired by the LC to continue to supervise safeguards related issues. The Safeguards Specialist will be hired by effectiveness of the AF. In addition, the LC will provide at least one staff member to be seconded to the PIU and support the Safeguards Specialist and build capacity within the LC. The Specialist will ensure that contractors incorporate relevant aspects of ESMP with adequate budgeting into the bidding documents and ensure the ESMPs are implemented. The Bank safeguards team will continue to provide support and guidance to the team during the implementation of the AF. G. Other Safeguard Policies (if applicable) Not applicable V. WORLD BANK GRIEVANCE REDRESS 62. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit Page 24 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org VI. SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Safeguard Policies Triggered ✔ Legal Covenants ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ EA category ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ VII. DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Strengthening the Policy, 5.00 Revised Strengthening the 3.67 legal and regulatory Policy, legal and Page 25 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Framework for Land regulatory Framework Administration for Land Administration Decentralization and 23.51 Revised Decentralization and 32.16 Improving Business and Improving Business and service Delivery Processes service Delivery Processes Improved maps and Spatial 31.51 Revised Improved maps and 35.61 data for land Administration Spatial data for land Administration Human Resource 10.78 Revised Human Resource 12.74 Development and Project Development and management Project management 0.00 New Unallocated 0.82 TOTAL 70.80 85.00 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-48700 Effective 31-Mar-2016 31-Jan-2019 31-Dec-2021 30-Apr-2022 TF-14256 Closed 30-Apr-2014 30-Apr-2015 30-Apr-2015 30-Aug-2015 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 0000 0.00 0.00 2011 0.00 0.00 2012 5,000,000.00 5,000,000.00 2013 4,241,736.19 9,241,736.19 2014 10,527,642.48 19,769,378.67 2015 8,699,336.44 28,468,715.11 2016 9,627,134.93 38,095,850.04 2017 4,496,053.09 42,591,903.13 2018 2,315,912.80 44,907,815.93 Page 26 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 2019 3,150,000.00 48,057,815.93 2020 7,500,000.00 55,557,815.93 2021 10,650,000.00 66,207,815.93 2022 13,700,000.00 79,907,815.93 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Substantial  Moderate Macroeconomic  Moderate  Moderate Sector Strategies and Policies  Moderate  Moderate Technical Design of Project or Program  Substantial  Substantial Institutional Capacity for Implementation and  Substantial  Substantial Sustainability Fiduciary  Moderate  Moderate Environment and Social  Moderate  Moderate Stakeholders  Moderate  Moderate Other Overall  Substantial  Substantial Safguard_Table COMPLIANCE Change in Safeguard Policies Triggered Yes Safeguard Policies Triggered Current Proposed Environmental Assessment OP/BP Yes Yes 4.01 Performance Standards for Private No No Sector Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 No No Forests OP/BP 4.36 No No Page 27 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Pest Management OP 4.09 No No Physical Cultural Resources OP/BP No No 4.11 Indigenous Peoples OP/BP 4.10 No No Involuntary Resettlement OP/BP 4.12 Yes Yes Safety of Dams OP/BP 4.37 No No Projects on International Waterways No No OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No No LEGAL COVENANTS1 LEGAL COVENANTS – Land Administration Project - 2 (P120636) Loan/Credit/TF LEGAL TBL1 Description Status Action IDA-48700 Recipient shall establish and maintain Complied with New National Project Steering Committee IDA-48700 Recipient shall establish and maintain a Complied with New Project Coordination Unit IDA-48700 Recipient shall ensure that the Project is Complied with New carried out in compliance with the safeguards instruments LEGAL COVENANTS2 LEGAL COVENANTS – Land Administration Phase 2 Additional Financing (P166907) Sections and Description the Recipient through its Land Commission shall maintain the Project Implementation Unit at all times during the implementation of the Project, with staffing and resources satisfactory to the Association, for the purpose of ensuring prompt and efficient implementation of Project activities no later than one (1) month after the Effective Date, the Recipient shall establish and thereafter maintain at all times during the implementation of the Project, the Project Management Committee, with a composition, staffing and resources satisfactory to the Association Conditions Type Description Effectiveness the Recipient has updated the Project Implementation Manual in a manner satisfactory to the Association Page 28 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Type Description Effectiveness the Recipient: (i) has officially established the Project Implementation Unit within the Lands Commission, with qualified and experienced staff in adequate numbers and with qualifications and under terms of reference satisfactory to the Association; and (ii) has appointed a Project lead and has recruited a safeguard specialist to the Project Implementation Unit, both with qualifications, experience and terms of reference satisfactory to the Association. Page 29 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Ghana Land Administration Phase 2 Additional Financing Project Development Objective(s) To consolidate and strengthen land administration and management systems for efficient and transparent land services delivery Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Strengthen land administration (Action: This Objective is New) Turn-around time for registering subsequent land deeds reduced in CSAU areas (Text) 42 days 30 days Rationale: Action: This indicator has been Revised Revised wording to focus on subsequent transactions Turn-around time for registering subsequent land titles transactions reduced (Greater Accra and Kumasi) (Text) 10% of transactions registered within 30 days 60% of transactions registered within 30 days Rationale: Revised wording to focus on subsequent transactions and to be measured based on % of transactions registered within the 30 days. Action: This indicator has been Revised The baseline represents number of land titles registered (part and whole transfers) in Greater Accra from December 2015 to August 2018 Turn-around time for first registration for land titles (Greater 3% of land titles registered within 90 working days 60% of land titles registered within 90 working days Accra and Kumasi) (Text) Page 30 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Rationale: Split of first registration from subsequent transactions as they are two different processes. Action: This indicator is New Focus on first registration which is a more complex process, and for which limited data is available. Unit of measure is percentage of land titles registered within 90 working days. Basic information on standard statutory fees, land values and 0.00 10.00 charges on land transactions made publicly available (Text) Rationale: Action: This indicator has been Marked for Deletion This indicator is now an intermediate indicator Registered land transactions (Number) 0.00 30,000.00 Rationale: Action: This indicator has been Marked for Deletion This indicator is now an intermediate indicator Registered land transactions -- female (Number) 0.00 0.00 Action: This indicator has been Marked for Deletion Strengthen land management (Action: This Objective is New) Increase in annual revenue generated in Consolidated CLS areas US$300,000 20% increase (Text) Rationale: As a proxy for the impact of CLS. The baseline figure represents an average of the annual revenue for the last three years Action: This indicator is New (2015, 2016, 2017) Number of Public and Private organizations with online access to GELIS data. (Text) 0.00 5.00 Page 31 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Rationale: Increased access to data online will help to improve efficiency and transparency in the land administration and Action: This indicator is New management systems. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Strengthening the Policy, legal and regulatory Framework for Land Administration (Action: This Component is New) Legislative instruments completed (Number) 0.00 4.00 Action: This indicator has been Revised Land Bill prepared (Number) 0.00 1.00 Land Use and Spatial Planning Act prepared (Number) 0.00 1.00 Decentralization and Improving Business and service Delivery Processes (Action: This Component is New) Customary land practices ascertained (Text) 0.00 8.00 Rationale: Action: This indicator has been Revised This activity has been completed. Customary law or practice is generally un-written so the process of ascertainment was to document the customary practice regarding land and then validate with the community, customary authorities, etc. so as to have a written record of the customary practice. A total of eight customary areas were completed. This activity is Page 32 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target completed with no further funding the AF. Number of Customary Land Secretariats (CLSs) established (Number) 88.00 108.00 Action: This indicator has been Revised Number of land rights recorded at consolidated CLS (Text) 25,000 40% Increase Action: This indicator has been Revised Number of customary land rights recorded for women (Text) n/a 40% increase Rationale: Action: This indicator is New Baseline will be available within 6 months of effectiveness Number of Client Service Access Units (CSAUs) offices established 5.00 12.00 (Number) Rationale: Action: This indicator has been Revised Baseline will be available within 6 months of effectiveness date. Customer satisfaction with services of the CSAUs and CLS (Text) n/a Continued improvement Rationale: Action: This indicator is New Baseline will be available within 6 months of effectiveness Number of land title applications cleared (Backlog) (Text) 35,152 Reduced by 20% Page 33 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Rationale: Action: This indicator has been Revised The baseline is a cumulative figure from 2012 to August 2018 Number of titles registered in Accra and Kumasi (Text) 25,057 Increase by 30% Rationale: Action: This indicator has been Revised The baseline is the cumulative figure for LAP2 – since 2011. Number of titles registered -- female (Text) 5,207 Increase by 50% Action: This indicator has been Revised Increased Percentage of of mortgage transactions registered 3% 50% within 14 days in Accra (Text) Rationale: The baseline derived from analysis of mortgages and discharges processed in Greater Accra from October 2015 to August Action: This indicator is New 2018 Number of land disputes/cases resolved by CLS (Text) n/a Increase by 50% Rationale: This indicator was originally focused only on ADR which was not popular with customary land holders. Only 307 cases were brought throughout LAP2. However the CLSs are engaged in resolving conflicts over land every day and the Project will Action: This indicator has been Revised attempt to collect this information. This maybe through ADR, or maybe through other means of conflict resolution. Baseline will be available within 6 months of effectiveness date. No of land disputes/cases resolved by CLS for women (Text) n/a no target Page 34 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Rationale: Action: This indicator is New Baseline will be available within 6 months of effectiveness date. Amount of content made publicly available (including fees and charges, data, procedures, etc.) (Text) 0.00 No target Rationale: Actual represents work done to date by LAP2 to make information about fees and charges more publicly available through Action: This indicator is New 10 methods of dissemination. Going forward this indicator will focus on a wider range of methods (digital, paper, etc.) as well as making more content available and increasing transparency of the land administration system. Improved maps and Spatial data for land Administration (Action: This Component is New) Area for which orthophoto maps are completed (Square 29,000.00 239,460.00 kilometer(km2)) Action: This indicator is New Policies for national spatial data infrastructure, survey and 0.00 5.00 mapping and geodetic reference network completed (Number) Design of the GRN Architecture for the country completed (Number) 0.00 1.00 CORS stations operational and maintained (Text) 5.00 Nationwide coverage Rationale: The exact number of stations for the end target is still to be determined based on the feasibility study to be financed under Action: This indicator is New the AF. Local Plans prepared (Text) 0.00 4.00 Page 35 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Action: This indicator is New Spatial development frameworks and regional frameworks 0.00 3.00 prepared (Number) Number of customary boundaries demarcated (Number) 0.00 1.00 Number of streets named by Sub-metro with corresponding 0.00 2,850.00 digital database (map and text) (Number) Number of property parcels addressed by Sub-metro with corresponding digital database (map and text) (Number) 0.00 120,000.00 Human Resource Development and Project management (Action: This Component is New) Number of staff trained in new technology/concepts (Text) 0.00 375.00 Rationale: This indicator will measure staff trained in GELIS, LUPMIS and CLS consolidation. Data will be collected separately and Action: This indicator is New aggregated for this reporting Number of Stakeholders trained (Judges, Lawyers, Chiefs, Land Sector Staff, Civil Society Organizations) (Number) 0.00 120.00 Number of Gender Equality Desks established (Regional LSAs and 0.00 4.00 LC) (Number) Public outreach and awareness activities undertaken (Number) 111.00 145.00 Action: This indicator has been Revised Number of Project related advocacy engagements with CSOs (Text) 0.00 4.00 Page 36 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Action: This indicator is New HRD plan completed, Implementation of prioritized Human resource development plan completed (Text) Not completed programs completed. Number of Civil Society Organizations trained in Gender Equality, 76.00 100.00 land rights and M&E (Number) Action: This indicator has been Revised IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Lands Commission, No. of Working Days for (transactions Turn-around time for registering LC, PIU monitoring registering land deeds Quarterly from all Lands Commission subsequent land deeds reduced in CSAU reports reduced in CSAU areas Regional areas Lands Commissions) Lands Commission, Turn-around time for registering Percentage of land titles LC, PIU monitoring Quarterly (transactions Lands Commission subsequent land titles transactions registered within 30 reports from all reduced (Greater Accra and Kumasi) working days Regional Lands Page 37 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Commissions) Percentage of land titles Lands LC, PIU monitoring Turn-around time for first registration for Annually Lands Commission registered within 90 Commission reports land titles (Greater Accra and Kumasi) working days Basic information on standard statutory fees, land values and charges on land transactions made publicly available Registered land transactions Registered land transactions -- female Increase in annual revenue generated in Number based on annual Annually OASL OASL OASL Consolidated CLS areas revenue collected Number of Public and Private Lands Annually Lands Commission Lands Commission organizations with online access to GELIS Number of organizations Commission data. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Number of legislative Annually MLNR/MESTI MLNR/ MESTI LUSPA/OASL/LC PIU Legislative instruments completed instruments completed Land Bill prepared Land Use and Spatial Planning Act prepared Number of customary land Annual OASL OASL OASL Customary land practices ascertained practices ascertained Number of Customary Land Secretariats Number of CLS established Quarterly OASL OASL OASL/LC PIU Page 38 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) (CLSs) established Number of land rights Number of land rights recorded at Quarterly OASL OASL OASL/LC PIU recorded at consolidated consolidated CLS CLS Number of customary land rights Number of customary land Quarterly OASL OASL OASL/LC PIU recorded for women rights recorded for women Number of Client Service Access Units Number of CSAUs Quarterly LC LC Monitoring Reports (CSAUs) offices established established Customer satisfaction with services of the Percentage of customer Annually LC, OASL,PIU LC, OASL, PIU TBD CSAUs and CLS satisfaction with services Number of land title applications cleared Number of land title Quarterly MLNR/LC PIU MLNR/LC PIU Monitoring Reports (Backlog) applications cleared Number of titles registered in Accra and Number of titles registered Quarterly MLNR/LC PIU MLNR/LC PIU Monitoring Reports Kumasi in Accra and Kumasi Number of titles registered Quarterly MLNR/LC PIU MLNR/LC PIU Monitoring Reports Number of titles registered -- female -- female Lands Commission, (transactions Increased Percentage of of mortgage LC, PIU monitoring Percentage increase of Quarterly from all Lands Commission transactions registered within 14 days in reports transactions registered Regional Accra Lands Commissions) M&E Number of land Number of land disputes/cases resolved Quarterly monitoring M&E monitoring reports OASL disputes/cases resolved by by CLS reports CLS Number of land M&E M&E Monitoring No of land disputes/cases resolved by Quarterly OASL disputes/cases resolved by Monitoring Reports CLS for women CLS for women Reports Page 39 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) M&E Amount of content made publicly Quarterly Monitoring LC available (including fees and charges, Reports data, procedures, etc.) Area for which orthophoto maps are Area for which orthophoto Annual MLNR/LC MLNR/LC LC/SMD/PIU completed maps are completed Policies for national spatial data infrastructure, survey and mapping and geodetic reference network completed Design of the GRN Architecture for the country completed Number of CORS stations Quarterly LC LC LC/SMD/PIU CORS stations operational and maintained operational and maintained LUSPA LUSPA Monitoring Number of local plans Quarterly Monitoring LUSPA/LC PIU Local Plans prepared reports prepared reports Spatial development frameworks and regional frameworks prepared Number of customary boundaries demarcated Number of streets named by Sub-metro with corresponding digital database (map and text) Number of property parcels addressed by Sub-metro with corresponding digital database (map and text) Number of staff trained in new Quarterly LC PIU Data will be collected for LC/PIO/LUSPA/OASL Number of staff trained technology/concepts each category - LUPMIS Reports Page 40 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) training, GELIS training, etc. and reported in aggregate Number of Stakeholders trained (Judges, Lawyers, Chiefs, Land Sector Staff, Civil Society Organizations) Number of Gender Equality Desks established (Regional LSAs and LC) Public outreach and awareness activities Quarterly LC PIU LC, PCU, OASL undertaken Number of Project related Number of Project related advocacy Quarterly LC PIU/IAs LC PIU/IAs Reports advocacy engagements engagements with CSOs with CSOs Human resource development plan completed Number of Civil Society Number of Civil Society Organizations Organizations trained in Quarterly LC PIU/IAs LC PIU/IAs Reports trained in Gender Equality, land rights and Gender Equality, land M&E rights and M&E ME IO Table SPACE Page 41 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Complete Results Framework End Target Data Source Responsibility Baseline – Indicator Name Unit of Measure Actual 2018 December Frequency / for Data Comments August 2018 31, 2021 Methodology Collection PDO level indicators Turn-around time for 42 days 42 days 30 days Quarterly Lands LC, PIU Revised wording to registering land deeds No. of Working Commission, monitoring focus on subsequent reduced in CSAU areas Days reports transactions Turn-around time for Percentage of land titles 10% 10% 60% Quarterly Lands LC, PIU Revised wording to registering subsequent registered within 30 Commission monitoring focus on subsequent land titles transactions working days reports transactions reduced (Greater Accra and Kumasi) Turn-around time for Percentage of land titles 3% 3% 60% Annually Lands LC, PIU Split of first first registration for registered within 90 Commission monitoring registration from land titles (Greater working days reports subsequent Accra and Kumasi)8 transactions as they are two different processes Increase in annual Number based on annual US$300,0009 n/a 20% Increase revenue in Annually OASL OASL New indicator revenue collected Consolidated CLS areas Number of Public and Private organizations 0 0 5 Lands Lands Number Annually New indicator with online access to Commission Commission GELIS data 8 Focus on first registration which is a more complex process, and for which limited data is available Page 42 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Unit of Baseline – End Target – Data Source / Responsibility for Indicator Name Actual 2018 Frequency Comments Measure August 2018 December 31, 2021 Methodology Data Collection INTERMEDIATE INDICATORS Component 1: Strengthening the Policy, legal and regulatory Framework for Land Administration Legislative 0.00 2.00 4.00 LUSPA/OASL/LC instruments Number Annual MLNR/ MESTI On-going PIU completed 0.00 1.00 1.00 Land Act prepared Number Annual MLNR completed Land Use and Spatial 1.00 1.00 1.00 Planning Act Annual LUSPA completed Number prepared Component 2: Decentralization and Improving Business and Service Delivery Process Customary land 0 8 8 practices Number Annual OASL Completed ascertained10 Number of Customary Land 88.00 88.00 108.00 Number Quaterly OASL OASL/LC PIU On-going Secretariats (CLS) established Number of land New indicator; 25,000 25,000 40% increase rights recorded at Number Quartely OASL OASL/LC PIU Consolidation consolidated CLS should 9 This baseline figure represents an average of the annual revenue for the last three years (2015, 2016, 2017) 10 Customary law or practice is generally un-written, so the process of ascertainment was to document the customary practice regarding land and then validate with the community, customary authorities, etc. so as to have a written record of the customary practice. A total of eight customary areas were completed. This activity is completed with no further funding the AF. Page 43 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Unit of Baseline – End Target – Data Source / Responsibility for Indicator Name Actual 2018 Frequency Comments Measure August 2018 December 31, 2021 Methodology Data Collection Number of significantly customary land Not available n/a 40% increase improve Number rights recorded for recorded land women reights 5.00 7.00 12.00 Monitoring CSAUs established Number Quarterly LC On-going Reports Customer satisfaction with Continued Percentage Not available n/a Annually LC, OASL, PIU TBD services of the improvement CSAUs and CLS Land title 35,15211 35,152 Reduced by 20% Monitoring applications cleared Number quarterly MLNR/LC PIU On-going Reports (backlog) Titles registered in 25,05712 25,057 Increase by 30% Number Accra and Kumasi Monitoring quarterly MLNR/LC PIU On-going Number of titles 5,207 5,207 Increase by 50% Reports Number registered - female 11 This is a cumulative figure from 2012 to August 2018 12 This is the cumulative figure for LAP2 – since 2011. Page 44 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Unit of Baseline – End Target – Data Source / Responsibility for Indicator Name Actual 2018 Frequency Comments Measure August 2018 December 31, 2021 Methodology Data Collection Lands Commission, Increased Percentage Quarterly (transactions LC, PIU of mortgage Percentage 3 %13 3% 50% from all monitoring new transactions registered Regional reports under 14 days in Accra Lands Commissions Number of land Not available Not availalbe Increase by 50% disputes/cases Number resolved by CLS14 Revised to M&E focus on No. of land Quarterly Monitoring OASL conflict disputes/cases Not available Not availalbe No target Reports resolution, not Number ADR resolved by CLS for women Amount of content made publicly M&E 0.00 available (including Text 1015 No target Monitoring LC Revised fees and charges, data, Reports procedures, etc.) 13 This baseline derived from analysis of mortgages and discharges processed in Greater Accra from October 2015 to August 2018 14 This indicator was originally focused only on ADR which was not popular with customary land holders. Only 307 cases were brought throughout LAP2. However the CLSs are engaged in resolving conflicts over land every day and the Project will attempt to collect this information. This maybe through ADR, or maybe through other means of conflict resolution. 15 This figure represents work done to date by LAP2 to make information about fees and charges more publicly available through 10 methods of dissemination. Going forward this indicator will focus on a wider range of methods (digital, paper, etc.) as well as making more content available and increasing transparency of the land administration system. Page 45 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Baseline – End Target – Responsibility Unit of Data Source / Indicator Name August Actual 2018 December 31, Frequency for Data Comments Measure Methodology 2018 2021 Collection Component 3: Improved Maps and Spatial Data for Land Administration Change to square Area for which 29,000 29,000 239,460 kilometers as orthophoto maps are Sq km Annually MLNR/LC LC/SMD/PIU a better completed measure of amount Policy framework for national spatial data infrastructure, survey 5 5 5 Number Annually LUSPA Completed and mapping and geodetic reference network completed Design of the GRN 0 1 1 Architecture for the Number Annually LC completed country completed Will be CORS stations Nationwide 5 5 implemented operational and Number coverage16 Quarterly LC LC/SMD/PIU by private maintained sector LUSPA 0 0 4 Local Plans prepared Number quarterly monitoring LUSPA/LC PIU new Reports Spatial development 0.00 3.00 3.00 frameworks and Number Annually LUSPA completed regional frameworks 16 The exact number of stations is still to be determined based on the feasibility study to be financed under the AF. Page 46 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Baseline – End Target – Responsibility Unit of Data Source / Indicator Name August Actual 2018 December 31, Frequency for Data Comments Measure Methodology 2018 2021 Collection prepared Number of customary 0 1 1 Number Annually OASL completed boundaries demarcated Number of streets named by Sub-metro 0.00 3,782 3,782 with corresponding Number Annually AMA completed digital database (map and text) Number of property parcels addressed by sub-metro with 0.00 125,000 125,000 Number Annually AMA completed corresponding digital database (map and text) Component 4: Human Resource Development and Project Management Number of staff 0.00 0.00 375.00 On-going – trained in new Number Quarterly LC PIU new training technology/concepts Number of stakeholders trained (judges, lawyers, 0.00 5,792.00 120.00 Completed Number Quarterly LC PIU chiefs, land sector training staff, civil societe organizations) Number of gender 0.00 5.00 4.00 On-going, to Number Quarterly LC PIU equality desks monitor Page 47 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Baseline – End Target – Responsibility Unit of Data Source / Indicator Name August Actual 2018 December 31, Frequency for Data Comments Measure Methodology 2018 2021 Collection established (regional implemenatio LSAs and LC) n Public outreach and 111.00 111.00 145.00 awareness activities Number Quarterly LC PIU On going undertaken New indictor; Number of Project Number of related advocacy 0.00 0.00 4.00 Number Quarterly LC PIU/IAs Reports project related engagements with engagements CSOs with CSOs on HRD plan HRD plan completed, completed, On-going, to Human resource none implementation implementation monitor development plan Text Quarterly LC PIU of prioritized of prioritized implementatio completed programs programs n completed completed Number of Civil Society Organizations 76 76 100 trained in Gender Number Quarterly LC PIU/IAs Reports On-going Equality, land rights and M&E Page 48 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Ghana LAP2: Theory of Change Problem statement: lack of access to land and information about land ownership and use are inhibiting business development and economic growth. PDO: to consolidate and strengthen land administration and management systems for efficient and transparent land service delivery. Activities Outputs Outcomes Complete Land Bill and Land Use Bills submitted to parliament, legal and Spatial Planning Bill and instruments prepared, training New Land Use and Spatial Specific investment associated legal instruments conducted. Planning Authority opportunities identified and established and functioning commenced through National Land Use Planning policy efficiently private sector Improve land management developed; National and regional efficiency and capacity strategic development plans developed and approved. Court cases resolved more quickly improved efficiency of, Court renovations, procedures amended, automation, training for and greater trust in, land Improve court performance in land cases. courts. administration institutions CLS established; Customary CLS supporting customary Private and public boundary and Rural parcel rights land rights sector feel more demarcation pilots completed. secure and invest Customary land law assessments Improve land administration concluded. Increase in numbers of more in their land efficiency and capacity transactions, from both and businesses Procedures modified and CSAUs CSAU’s providing faster established; software functioning and more transparent genders services Maps produced, NSDI and geodetic policies agreed Government has better Develop geodetic network, new spatial information for mapping and address systems planning and other uses Street addressing and house numbering program completed in Accra. Government agencies and Develop human resources, civil Revenue from transactions, engagement and gender equity in Accra city authorities have ground rent and property the sector Strategies developed, training detailed information about concluded and staff recruited taxes increase land for taxation Page 49 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) ANNEX 1: DETAILED COMPONENT DESCRIPTION Component 1: Strengthening the Policy, Legal and Regulatory Framework for Land Administration 1.1 Completion of the Land Bill and other regulatory framework 1. The objective of this Component remains the same: to provide a platform for continued work on the legal framework governing land administration and land use, building upon the accomplishments achieved under LAP1 and LAP2. The main activities will continue under the Sub-component 1.1 but will be broadened to look at the complete legal framework governing land administration and land management. 2. This Component will include amendments to the legal and administrative acts, regulations, etc. to support the re-engineered business processes (to be completed under Component 2) and other needed legal changes. The Land Bill is expected to pass before Parliament by the end of first quarter of 2019 and at that time the Legislative Instrument to operationalize the Land Bill will be prepared. In addition, LIs for LUSPA, LC and OASL will be passed by parliament. Consultations and other activities will also be needed to sensitize lawyers, judges, government officials and the general public of the new legal framework. 1.3 Specific Supporting Studies 3. The GoG is actively promoting private sector participation in all sectors of the economy, including the land administration sector. The GoG is interested in pursuing a Public-Private Partnership (PPP) or other private sector financing arrangement for the land sector. Therefore, the AF will finance the preparation of the market analysis and feasibility studies for a possible PPP arrangement for land service delivery. 4. Sub-component 1.2 Partnership with the Judiciary will not continue. Component 2: Decentralizing and Improving Business Service Delivery 5. The objective of this Component remains the same: to improve the deeds and title registration systems by accelerating and making their transactions more transparent and secure, and by making the registry offices more client-focused. The support for Customary Land Secretariats will also continue. 2.1: Decentralization of Service Delivery 6. This Sub-component will continue to focus on improvements for service delivery to all citizens of Ghana whether in statutory or customary areas and will facilitate linking the data of the Lands Commission to that of the CLSs thereby creating a single database for all land in Ghana. 7. Client Service Access Units (CSAUs). Five additional regional offices will be upgraded to include CSAUs and to be GELIS compliant. This activity will support office construction and renovations and installation and configuration of the necessary ICT infrastructure and back-up power supply. Training will Page 50 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) also be supported for these new CSAUs and office staff under Component 4, with a focus on new business processes, ICT and customer service. The CSAUs software includes fields for ‘gender’ in the registration process, creating gender-disaggregated data. More work will be done to sensitize, educate and advocate for women’s land rights in the registration process (see Sub-component 4.2). 8. Customary Land Secretariats (CLS). The concept of the CLS has been developed and promoted under LAP2 to improve effectiveness in customary land administration, accountability, participation of community members in land management activities and decision-making, transparency and access to information, including for women. These are essential to good governance in customary land administration and management. 9. The Office of the Administrator of Stool Lands (OASL) will continue to be the implementing agency for the consolidation and streamlining of the process for establishing and operating CLSs. It is anticipated that 20 new CLSs will be established during the AF period. This will include the establishment of at least two centralized CLSs in areas where families and clans are the allodial landowners. But more importantly, OASL will streamline operations and consolidate 10 of the most economically viable CLSs. 10. One major achievement of the CLSs has been the recording of data on customary land transactions in an organized and digital manner, with the ability to gender disaggregate the data. This Sub-component will pilot a model support package that will link customary land use rights management, proper local land use planning and custom designed CLS Operating Software Package. This will assist the government in developing standardized documentation of customary land transactions that will allow for mass first registration of customary land rights directly into GELIS. 11. More specifically, this consolidation will include: a) reviewing and streamlining business plans previously developed for CLSs; b) setting business objectives and assessing on-going performance of the CLS; c) short and long-term resource planning; d) developing training manuals and modules required to make CLSs functional and self-financing; e) staff training and competency standards for CLSs staff in reading and interpreting financial data, and effective and efficient running of the CLSs; and f) other activities as necessary. 12. Under the new land use and spatial planning Act, 2016 (Act 925), a Local Plan is at the base level of Ghana’s new three-tier planning system, and replaces the previous ‘Sector Plan’ system. The Local Plan defines land use rights and development regulation for parcels of land in each local planning area. In the CLS areas targeted for consolidation, the AF will support the preparation of basic Local Plans. The AF will also support TA for the CLS software development and deployment; hardware and software; Training and capacity for CLS staff for operating the new office management software; Support for application of consolidation package for streamlining CLS operations including the use of land transaction templates designed to support first registration; Coordination with LUPSA on local plans (layouts); Coordination with GELIS for streamlining document requirement and procedures for first registration. 13. Finally, the AF will enable OASL to intensify the public education, information and sensitization around the benefits of the consolidated CLS concept in stool or family areas. This will include all key Page 51 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) stakeholders - chiefs, principal/elders of families and clans, local land professionals, and citizens themselves - to promote good governance in customary land administration and management. This will also include an increased emphasis on women’s land rights and sensitizing traditional authorities and community members on this topic. 2.2: Streamlining Business Processes 14. Modern and efficient land administration requires streamlined procedures and processes for the land registration and cadastre. The pilot stage of GELIS resulted in the development of the land administration, cadastre and land registration modules that are deployed and rolled out in the pilot areas. The pilot stage also included conversion of paper land records to digital for about 10 percent of the total number of the records for the pilot areas. 15. The AF will support a further development, update and upgrade of the GELIS and the necessary hardware and other equipment to achieve a complete functionality of the system. The AF will support consultancy services required for a review, assessment and preparation of necessary technical requirement and specifications for the GELIS update and upgrade and the supervision of this software development. Specifically, this will include: a) review and assess the pilot version of the system and its functionality, further review and reengineering of the business process for entire land administration functionality, and upgrade of existing modules of the system based on the results of further business process reengineering; b) development of modules dropped due to funding limitations - the Land Valuation module and functionality, Stool Land Administration Module, c) development of the necessary functionalities to ensure the interoperability of the GELIS with the Land Use Planning Management Information System (LUPMIS); d) development of a Corporate Portal and connections with relevant government agencies, such as the Ghana Revenue Authority (GRA), National Identification Authority (NIA) and others, and development of functionality for online access by banks and other relevant private sector entities; e) development of the Public Portal; f) upgrade of the land survey data exchange mechanism and module for the private land survey companies to increase the transparency, productivity and reliability of the land surveys and data update in the system; g) update of the data security, including completion of all required security controls; and h) other activities as needed. 16. LUPMIS will also require an update and upgrade to a web-based solution to ensure interoperability with GELIS. The AF will support the consultancy services for the review of LUPMIS, preparation of relevant technical requirements and specifications, as well as the development of the upgrade and update of LUPMIS. Inter-operating the GELIS and LUPMIS to be able to share spatial and other data for planning purposes will provide official information about the property location, size and ownership, as well as land use that might be needed as evidence in cases of complete loss of property or property boundaries after climate related disasters and in related disaster insurance claims. Page 52 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 17. The AF will also support the conversion to digital format of the existing land records to be used as the legacy data in GELIS to increase the reliability of the land registration procedures and the security of land transactions. The Sub-component will support the development of a proper records management and archiving system, manuals, protocols and training for the Lands Commission as well as any necessary equipment and furniture. In addition, the AF will also target staff training to accompany the rollout of GELIS that will focus not only on the ICT but also on the revised business processes and new way of working in the back office. 18. Finally, this Sub-component will support improvements in land registration. This will include training, engaging temporary staff, improved organization of work and procedure to clear the backlog and improve services. 19. Improving registration services for both statutory and customary land rights under this Component will improve climate related disaster recovery in cases of temporary displacement as it allows people to relocate without fear of losing their property. It will also provide official information about the property location, size and ownership that might be needed as evidence in cases of complete loss of property or property boundaries after climate related disasters and in related disaster insurance claims. Component 3: Improved Maps and Spatial Data for Land Administration 20. The objective of this Component remains the same: to develop a sustainable spatial information service by producing up-to-date base maps and other spatial products to be used as inputs directly or indirectly in all components of the project and for users within and outside the government. 3.1: Developing Policies for surveying and mapping and other Spatial Data Development 21. The draft of the National Geospatial Policy (NGP) is completed and the policy document is submitted to the Cabinet for review and approval. The NGP is a top-level policy document that provides the vision and guidelines from which more detailed implementation plans can be developed to facilitate a National Spatial Data Infrastructure (NSDI). NSDI will increase the efficiency of the production and use of spatial data across the public and private sectors. The AF will support the LC and others to operationalize the NGP. 3.2: Preparation of Base Maps 22. Efficient land administration and land management require accurate and up-to-date spatial data. LAP2 supported Base Mapping that covered only about 12% of the territory but demonstrated the crucial importance of up-to-date digital orthorectified imagery to support the land survey, land use and physical planning, establishment of addressing system, etc. The lessons learned from this process demonstrated the importance of proper technical specifications and bidding documents for base mapping projects, as well as the need for expert supervision and appropriate technical support. 23. The AF will continue to support the LC’s Survey and Mapping Division to prepare the proper technical specifications and bidding documents and the contracting of the base mapping of the entire Page 53 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) country. This will include digital color aerial photography, preparation of relevant digital orthorectified imagery, and core vector data sets for the same. This sub-component will also support the consultancy services for the base map Data Modeling, support the supervision and establishment of Quality Assurance and Quality Control (QAQC) System for proper acceptance of the deliverables. 24. Completion of the base maps under this Sub-Component will also help the government to develop monitoring and planning mechanisms for climate change vulnerabilities and impacts as this information is essential for determining who are the potential and actual victims of climate disasters. 3.3: Establishment of Geodetic Reference Network (GRN) 25. The Government of Ghana (GoG) is actively promoting private sector participation in all sectors of the economy, including in the land administration sector. This Sub-component will support the preparation of the market analysis and feasibility studies for establishment and operation of Global Navigation Satellite System (GNSS) Continuously Operating Reference Stations (CORS) Network for Ghana. The rationale for private sector participation in this activity is that this is a function that is successfully performed by the private sector in other countries and costing and implementation models are available. Furthermore, the AF will not support any surveying for systematic registration, for which the CORS would be needed. Therefore, the risk that this private sector model might not be successful is minimized and impact on the overall project outcomes is limited. The participation of the private sector in the establishment of the CORS Network will contribute to the maintenance and sustainability of the Network by providing positioning services for land survey and other sectors of the economy for which fees are paid. This sustainable model is used in most countries with such a CORS Network. 26. The following Sub-components will not continue under the AF: Subcomponent 3.4 Boundary Demarcation; Subcomponent 3.5 Preparation of land use plans; Subcomponent 3.6 Revaluation of Properties; and Subcomponent 3.7 Street addressing and property identification Component 4: Human Resource Development and Project Management 27. The objective of this Component remains the same: to build capacity in support of the main land sector agencies, the private sector, landowner/traditional authorities, judiciary, NGOs and other stakeholders. This Component will continue with training and capacity building, public awareness and communications, and activities to increase gender equality. This Component will also finance project management, procurement and FM functions, safeguards supervision and monitoring and evaluation. 4.1: Human Resource Development 28. A comprehensive assessment of capacity needs of the land sector agencies, Customary Land Secretariats (CLSs), and Civil Society Coalition on Land (CICOL) has been undertaken. Based on the outcome of the needs assessment, Human Resource Development Plans and Capacity Building Strategy were developed. Strategic Business Plans were also prepared for Implementing Agencies under LAP 2 (LC, OASL, LUSPA, AMA and JS). This Sub-component will continue to implement these training and capacity building programs with a particular focus on service delivery and ICT. For the LC, the rollout of GELIS will require focused training programs not only on the ICT itself but also on the revised, streamlined business Page 54 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) processes. 4.2: Gender Equality Mainstreaming 29. The focus will be on improving women’s land rights in Ghana through continued education and awareness creation, sensitization activities, and other outreach to encourage women to document their land rights. This Sub-component will build on the capacities of the Non-Governmental Organization (NGO) sector, government institutions and customary authorities and continue the advocacy work already begun under LAP2. CICOL and the Network for Women’s Rights (NETRIGHT) initiated community, regional and national actions to advocate for the inclusion of women in discussion on land at the national and local level to achieve strategic transformation and expand visibility and opportunities for women alongside men in land administration. CSOs participation in the preparation and review of the Land Bill and the Land Use and Spatial Planning Act, 2016 (Act 925) and associated LI resulted in the inclusion of gender issues in these important bills. This work will continue with the preparation of the LI for the Land Bill. 30. Advocacy for socio-cultural change particularly in land governance at the customary level was another key advocacy area the Project focused on in collaboration with CSOs. Through the advocacy interventions, inclusion of women in decision making processes at the customary level, in Land Management Committees at the CLS and in discussion on land at the regional houses of chiefs have improved. There is now general acceptance of discussions on gender issues in customary land governance and the AF will build on this and continue this advocacy with a greater focus on tangible results for women. 4.3: Communication and Public Outreach 31. Public awareness and outreach are part of several components including improving service delivery, establishment of the CSAUs, and establishment of the CLSs. However more targeted and coordinated outreach efforts are needed to support rollout of GELIS, the new Land Bill and other improvements. This Sub-component will finance first, the engagement of a consultant to develop a national public information, education and communication strategy, and second, the implementation of the plan in a timely, strategic and sustained manner. 4.4: Project Management 32. This Sub-component will support the PIU responsible for procurement, financial management, monitoring and evaluation and safeguards supervision, and associated project management costs. The PIU will be located within the Lands Commission. Page 55 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) ANNEX 2: SUPPLEMENTAL ECONOMIC AND FINANCIAL ANALYSIS 1. In 2011, the Government of Ghana (GoG) began the implementation of LAP 2 that aimed at consolidating and strengthening land administration and management systems for efficient and transparent land services delivery. As a first step to achieve important improvements in efficient and decentralized land administration service, the Lands Commission (LC) implemented a one-stop-shop for customers in need of land services - the Client Service Access Units (CSAUs). The recent completion of the Ghana Enterprise Land Information System (GELIS) will also support improving land registration services in the LC. But the improvements to land administration and management systems under LAP2 have been much wider than just service improvements in the LC. LAP2 has supported the establishment of 51 Customary Land Secretariats (CLSs)17 as customary lands make up about 80 percent of land holding in the country. As a result of the CLS more than 40,000 rights have been recorded providing tenure security for those rights holders and better information for the customary authorities. Support from LAP2 has also led to: i) the establishment of the national spatial planning framework and legal instruments creating the Land Use and Spatial Planning Authority (formerly Town and Country Planning Department); and ii) the creation of Land Use Planning Management Information System (LUPMIS) which provides significant functionality for planning and issuance of planning permission, among other functionalities. 2. With support from LAP2, the Accra Metropolitan Assembly (AMA) has completed the digital mapping of all ten sub-metropolitan areas and assigned and installed 3,782 new street names and mounted 6,780 poles and 12,952 nameplates. Also, 125,000 parcels have been identified and numbered in the digital database and has resulted in the identification of 100,000 more properties to be included in the next re-valuation for taxation. Support to the Judiciary has led to an increase in the number of dedicated Land Courts and the High Court (Civil Procedure) Rules, 2004 (C.I.47) was amended to allow Written Witness Statements, which has helped to reduce the time for resolving land cases from an average of 24 months to about 10 months. 3. Given the achievements to date but also the gaps, the GoG has requested an Additional Financing (AF) credit from the World Bank in the amount of US$35.0 million that will support scaling up of project activities in the customary land sector and respond to a financing gap to support completion of the activities of the LC. The scaling-up of activities in the customary land sector would further improve service delivery and transparency. Further, streamlining of business processes and development of GELIS will improve land administration services provided by the LC. Completing the base mapping for Ghana (orthophotos) and establishing the link between GELIS and LUPMIS will support improved land use planning and land management activities. Finally, the planned integration of land records for all types of land in GELIS will benefit Ghana as more clarity and transparency in land holdings will be available for planning, development projects, environmental management and other uses. 4. In order to accurately assess the economic and financial impact of the Project, it became necessary to undertake a preliminary EFA of the AF with the view to justify the economic and financial feasibility of the AF. This EFA builds on the original EFA for LAP2 and its associated PDO. 17 37 were established under LAP1, 51 under LAP2, bringing the total in the country to 88. Page 56 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Methodology 5. The original EFA for LAP2 outlined the expected benefits of the Project as: (i) improved land tenure security; (ii) improved efficiency in registration systems and service delivery; and (iii) provision of better quality and cheaper land information. Empirical studies undertaken internationally indicate, while not uniformly, that land tenure security and efficiency in land transactions can contribute positively to: (i) increased incentives for investment and productivity; (ii) increased access to more and cheaper credit which would lead to increased investment and productivity; and (iii) an overall increase in productivity as land moves from less efficient to more efficient producers through rental and sales markets. This EFA for the AF builds on that original model. Economic Analysis 6. As with the original project, the economic impact of the AF is wide, varied and very difficult to quantify largely as a result of complexities in attribution. The components of the AF suggest that two main types of benefits could be obtained from the investment: benefits from the provision of spatial land information (related to component 3) and benefits from efficiency in land administration (related more to component 1, 2 and 4). Table 1 provides some information on the specific benefits that may be obtained from each benefit. Table 2.1: General and specific economic benefits of the AF General Result Benefit Provision of More up to date data on -Increase in the collection of property spatial land properties available for MMDA’s rates by MMDAs information and Customary Authorities -Improvement in the collection of grounds rent by OASL Base maps available for more up -Reduction in delivery cost of emergency to date and accurate planning and and postal services service delivery -More up to date land use plans used for development control Efficiency in Faster and less complex to -Increase in revenue from registration land register; reduction in turnaround -Reduction in cost of registering property administration times for registration; more by citizens transactions registered -Reduction in survey cost for citizens -Increased access to credit through the use of land as collateral -Increase in the value of land 7. This economic analysis as with the original Project does not estimate the benefit from the Efficiency in land administration. Although some data is now available, the methodologies for the quantifications of these benefits have not been fully developed and data collected is still limited. 8. The analysis is restricted to the quantification of the benefits from the provision of spatial land information. It must be noted that there is a causal relation between the provision of spatial land information and efficiency in land administration and therefore providing estimates for the former invariably gives us some minimum estimates of the economic benefits of the AF. Page 57 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Assumptions Underlying the Economic Analysis 9. Project life and planning horizon. The Project investment is expected to be US$ 35 million. Table 2.2: Annual Additional Financing Inflows (in US$) Year Amount 2019 3,150,000.00 2020 7,500,000.00 2021 10,650,000.00 2022 13,700,000.00 10. The Project implementation period for the investment is expected to be three years (2019-2021), with a grace period of four months until April 2022. Disbursements will therefore be made over the period (2019-2022) as indicated in Table 2. The total planning horizon over which the economic analysis is being conducted is 20 years (2019-2038); of which 3 (2019-2022) will be used for implementation and remaining 17 (2022-2038) for the operational period. 11. Recurrent cost and base year. We assume that the investment will be made over a three-year period (2019-2021). However, the Government will incur a recurrent cost of US$ 0.5 million annually till the end of the project in 2038. The Gross Domestic Product (GDP) for the base year 2019 is also estimated to be about US$ 52,699.1 million. 12. Benefits from the provision of spatial land information. The impact of the provision of spatial land information on the economy at the macro level is based on two main factors. The growth of GDP over the life time of the Project and the impact of the Project on GDP. Table 2.3: Estimation scenarios Scenario Assumption on impact Assumption of GDP growth Base Impact is 0.004% of GDP between GDP growth for the period is based on 2023 and 2027, increasing to 0.008% trends observed between 2000 and 2018 between 2028 and 3032 and to 0.10% between 2033 and 2038. Optimistic Impact is 0.004% of GDP between GDP growth for the period 2019 to 2024 is 2023 and 2027, increasing to 0.008% based on an average annual growth of between 2028 and 3032 and to 7.2% growth proposed by the Medium- 0.10% between 2033 and 2038. Term Development Plan, 2017-2024 but increases at an average annual rate of 11.8% after 2024 Highly Impact is 0.004% of GDP between GDP growth for the whole period is based optimistic 2023 and 2027, increasing to 0.008% on an average annual growth rate of 11.8 between 2028 and 3032 and to % proposed by the Energy Infrastructure 0.10% between 2033 and 2038. Framework of the Ghana Infrastructure Plan (2018-2047). Page 58 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 13. We estimate the impact of the project on the macroeconomy using a study in Australia that concluded that in 2006-07 the accumulated impact of the supply of spatial land data on the economy was between 0.6 and 1.2 percent of the country’s GDP. Considering that the level of development of Ghana is low compared to that of Australia18 and the fact that investment costs have some link with improvement in land administration, we expect the impact on GDP in Ghana should be lower than that of Australia. 14. The next step is to estimate the growth of GDP over the life cycle of the project. Various national documents have provided estimates of growth in the country. The National Medium-Term Development Framework 2018-2024 (NDPC, 2018) estimates that Ghana’s long-term target is to raise per capita GDP from US$1,515.6 in 2016 to at least US$3,500 by 2024. This will entail achieving average annual GDP growth rate of at least 7.2 percent between 2018 and 2024. The Energy Infrastructural Framework (NDPC, 2017) also estimates that annual average GDP growth will hover around 11.8 percent between 2018 and 2047. Based on these two factors: impact of spatial data on the macroeconomy and assumption on GDP growth. We consider three scenarios in our estimation. 15. Opportunity Costs of Capital (OCC): The opportunity cost of capital of 10 percent was maintained since this rate is assumed for many international projects. 16. Once we have obtained estimates of GDP with and without the project we find the net impact and discount it to the present. Based on this information we calculate three efficiency parameters: Internal Rate of Return (IRR), Cost Benefit Ratio (CBR) and Net Present Value (NPV). Internal Rate of Return is the interest rate at which the NPV of all the cash flows from an investment is equal to zero and used to evaluate the attractiveness of an investment. In general, if the IRR of an Investment exceeds a company’s required rate of return, that project is taken as desirable. On the other hand, if the IRR is below the required rate of return, the investment should be rejected. In our example the required rate of return could be about 10 percent since this is the discount rate we used. The Net Present Value is the present value of the cash flows at the required rate of return of an investment compared to the initial investment or a method for calculating the return on investment. Calculating the NPV requires discounting all the net benefits from the investment over the lifetime of the project and subtracting that amount from the initial investment Financial Analysis 17. The methodology used to undertake the financial analysis revolves around the difference in difference method. Specifically, we estimate the difference in net revenue of the Lands Commission (LC) with and without the program over the life cycle of the Project. The Lands Commission collects revenue in the form of the stamp duty (a transfer tax based on the value of the property involved) and fees (non- tax revenue) collected for services provided by the LC – registration of deeds or titles, production of a certified copy, etc. 18. For the period without the program, we used trend analysis based on actual data on both tax and 18 The Value of Spatial Information - The impact of modern spatial information technologies on the Australian economy, March 2008, ACIL Tasman, http://www.crcsi.com.au/uploads/publications/PUBLICATION_323.pdf Page 59 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) non-tax revenue for 2003 to 2018 to estimate revenue that will accrue to LC for the period 2019-2038. Similar approach was used to estimate the expenditure of LC for the period 2019-2038. For the period with the program, we assume that revenue will increase at 5 percent per annum from 2018 to 2028 and thereafter stabilize at about 55 percent per annum till the end of the project in 2038. Expenditure for the period with the project will increase by 10 percent of the previous year’s expenditure. We also include the cost of AF as expenditure element in the period with the project. Results Economic analysis 19. As indicated in Table 4 for the base years scenarios, the ERR is 15 percent, a Cost- benefit ratio is 1.50 and an NPV is US$ 14.54 million. The ERR of 15 percent is quite acceptable while the Cost- benefit ratio of 1.50 indicates that for every dollar invested, a benefit of US$1.50 will be obtained. Table 2.4: Economic Analysis of AF (Base Case) Costs Calculation of Benefits Year LAP II Assumed % Estimated Cash Flow Ghana's Investments and Impact of LAP II Impact of LAP II GDP Recurrent Cost on GDP on GDP Ci Bi = Bi-Ci US$ M US$ M % US$ M US$ M 2019 3.15 52,699.1 0.00% 0.00 -3.15 2020 7.50 56,493.4 0.00% 0.00 -7.50 2021 10.65 60,561.0 0.00% 0.00 -10.65 2022 13.70 64,921.3 0.000% 0.00 -13.70 2023 0.50 69,595.7 0.004% 2.78 2.28 2024 0.50 74,606.6 0.004% 2.98 2.48 2025 0.50 79,978.2 0.004% 3.20 2.70 2026 0.50 85,736.7 0.004% 3.43 2.93 2027 0.50 91,909.7 0.004% 3.68 3.18 2028 0.50 98,527.2 0.008% 7.88 7.38 2029 0.50 113,225.9 0.008% 9.06 8.56 2030 0.50 121,378.2 0.008% 9.71 9.21 2031 0.50 130,117.4 0.008% 10.41 9.91 2032 0.50 139,485.8 0.008% 11.16 10.66 2033 0.50 149,528.8 0.010% 14.95 14.45 2034 0.50 160,294.9 0.010% 16.03 15.53 2035 0.50 171,836.1 0.010% 17.18 16.68 2036 0.50 184,208.3 0.010% 18.42 17.92 2037 0.50 197,471.3 0.010% 19.75 19.25 Page 60 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 2038 0.5 211,689.26 0.01% 21.17 20.67 IRR 15% C&B Ratio 1.50 NPV 14.54 20. The NPV of US$ 14.54 million indicates that over the 20 years period, the discounted cost of the Project is more than the discounted benefits by US$ 14.54 million. It must be noted that many of the economic benefits mentioned above have not been considered and as the Project progresses, efforts should be made to collect data and assess those benefits. Table 2.5: Simulation of Efficiency Parameter at Different Economic growth Base Optimistic Highly optimistic IRR 14.71 18.41 20.85 C&B Ratio 1.50 2.11 2.56 NPV 14.54 30.30 41.18 21. Simulation of the efficiency parameters based on the different economic growth path (scenarios) as presented in Table 2.5 indicate that for all the scenarios, the cost benefit ratio is greater than 1, the ERR is higher than the discount factor of 10 percent, and the NPV is positive. This means that under all economic growth scenarios, the project can be justified on economic grounds. Financial analysis 22. The results of the financial analysis are presented in Table 2.6. The FRR of 33 percent is quite high while the cost- benefit ratio of 1.15 indicates that for every dollar invested, a benefit of $1.15 will be obtained. Table 2.6: Financial Analysis of AF (GHS Million) Without Project With Project LAP2 Cash Reven. Expd. Surplus Reven. Expd. Costs Surplus Flow S2=R2-E2- Years R1 E1 S1=R1-E1 R2 E2 C C S2-S1 2003 5.56 2004 8.42 2005 6.15 2006 10.29 4.57 5.72 2007 18.13 7.73 10.40 2008 24.02 8.00 16.02 2009 18.37 13.46 4.91 2010 26.58 10.20 16.38 2011 35.17 18.18 16.99 2012 55.36 22.6 32.72 2013 57.00 33.2 23.79 Page 61 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) 2014 78.96 41.7 37.27 2015 114.66 62.7 51.99 2016 104.47 57.8 46.68 2017 167.39 58.9 108.53 2018 126.49 65.6 60.85 2019 136.21 71.4 64.82 143.02 71.39 15.75 55.88 -8.94 2020 145.94 77.1 68.79 160.53 78.53 32.50 49.50 -19.29 2021 155.66 82.9 72.76 179.01 86.39 53.25 39.37 -33.39 2022 165.38 88.7 76.73 198.46 95.02 61.92 41.51 -35.22 2023 175.11 94.4 80.70 218.88 104.53 114.35 33.65 2024 184.83 100.2 84.67 240.28 114.98 125.30 40.62 2025 194.55 105.9 88.65 262.65 126.48 136.17 47.52 2026 204.28 111.7 92.62 285.99 139.12 146.86 54.24 2027 214.00 117.4 96.59 310.30 153.04 157.26 60.67 2028 223.72 123.2 100.56 335.58 168.34 167.24 66.68 2029 233.45 128.9 104.53 361.84 185.18 176.66 72.14 2030 243.17 134.7 108.50 376.91 203.69 173.22 64.72 2031 252.89 140.4 112.47 391.98 224.06 167.92 55.45 2032 262.62 146.2 116.44 407.05 246.47 160.58 44.14 2033 272.34 151.9 120.41 422.12 271.12 151.01 30.60 2034 282.06 157.7 124.38 437.20 298.23 138.97 14.58 2035 291.78 163.4 128.36 452.27 328.05 124.22 -4.14 2036 301.51 169.2 132.33 467.34 360.85 106.48 -25.84 2037 311.23 174.9 136.30 482.41 396.94 85.47 -50.83 2038 320.95 180.7 140.27 497.48 436.63 60.85 -79.42 NPV 1698.39 877.55 771.86 2323.65 1298.06 123.48 902.11 130.25 C/B= 1.15 IRR= 33.1% NPV= 130.25 23. The NPV of US$130.25 million indicate that over the 20 years period the discounted cost of the project is more than the discounted benefits by US$130.25. Table 2.7: Sensitivity analysis based on cost escalation Costs Base Costs Up Costs Parameter Up Case 10% Up 20% 106% FRR 33% 29% 22% 10% C&B Ratio 1.15 1.12 1.10 1 NPV 130.2 117.9 105.6 0 24. We simulate the results of the financial analysis based on cost escalation which is a very important Page 62 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) variable in a developing country like Ghana. We assume a cost escalation of 10 percent, 20 percent and 108 percent. The results as indicated in Table 2.7 show that under all the cost escalation, the FRR is greater than 10, the cost benefit ratio is greater than one and the NPV is positive, indicating that the project is financially feasible. It is only when cost escalates by about 108 percent that the project reaches switching value, where the FRR is equal to 10 percent, and declines thereafter. Conclusions 25. The economic and financial analysis of the LAP2 AF indicates that investment in the project is economically and financially efficient. In terms of economic viability, the ERR of 15 percent for the base year scenarios is quite acceptable while the cost-benefit ratio of 1.49 indicates that for every dollar invested, a benefit of US$1.49 will be obtained. The NPV of US$13.18 million indicates that over the 20 years period the discounted cost of the project is more than the discounted benefits by US$ 13.16 million. All the efficiency parameter considered improves for the other scenarios. 26. With regards to the financial analysis, the base scenario resulted in an FRR of 27.9 percent, a cost- benefit ratio of 1.28 and an NPV of US$ 118.62 million. Sensitivity analysis using cost escalation suggested that it is only when cost escalates by about 97 percent that the project will reach switching value, where the FRR is equal to 10 percent, and declines thereafter. Page 63 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) Annex 3: Implementation Completion and Results Report (ICR) Main Findings and Lessons Learned 1. The Additional Financing (AF) for LAP2 will be implemented over three years beginning in 2019 through December 31, 2021. As the AF will take the overall project implementation period beyond 10 years (from March 2011), an ICR has been prepared for the Project results up to March 2018 and found the Project to be Moderately Satisfactory, consistent with the latest Implementation Status and Results Report (ISR). The ICR was submitted to the World Bank Board of Directors in October 2018. Key Findings of the ICR 2. The Project was well designed with all the key land administration and land management factors included, but there was little practical recognition of what could be achieved. The wide range of beneficiaries and implementing entities – MLNR, OASL, LC, JS, LUSPA, and AMA – meant that there was limited focus during project implementation and too many activities with too many institutions. 3. It is difficult to understand how the serious problematic issues with the title registration system were not identified during project preparation and that sufficient resources were not allocated for dealing with this problem. In fact, the LC did not see itself as fully part of the Project and the lack of focus allowed the LC to do the minimum to achieve results – including the establishment of the CSAUs and the GELIS. But little was done to focus on back-office dysfunction. 4. The proposed PDO outcome indicators related primarily to the performance of the deeds and title registries. The success in meeting these targets was heavily dependent on the completion and rollout of an Information Technology (IT) system developed under LAP1. It turned out that it could not be used, and a new system would have to be developed. Given the wealth of experience with trying to develop IT systems within the Bank, the assumptions made during preparation were extremely risky and a much better assessment of the proposals for IT should have been carried out during project appraisal. Key Lessons Learned 5. It is necessary to prepare and take into account lessons from previous projects prior to finalizing the preparation of the next phase. The ICR for LAP1 should have at least been drafted before the LAP 2 Project was appraised hence it ended up repeating the same mistakes as LAP1, especially regarding complexity and overstating what can be achieved. 6. Land projects are complex, expensive and time consuming but highly beneficial if they are successfully completed. Teams need to seriously consider projects from a practical implementation perspective and include experienced land administration and land management specialists in the process. Bank management has a responsibility to ensure that adequate professional expertise at the team leader level and at the professional level is included in the team. If there is a funding issue, then the Project needs to be simplified accordingly. 7. Major IT systems are notorious for not being completed within a 5-year project cycle. Projects in Uganda, South Africa, Romania, Croatia, Serbia, and Ukraine, to name only a few, suffered the same fate; as did LAP1. The design and feasibility for such systems should be concluded prior to appraisal and it needs Page 64 of 65 The World Bank Land Administration Phase 2 Additional Financing (P166907) to be realized that system implementation and roll out for such a major system will take at least three years. This needs to be a standard rule for any land project. If the contract is not awarded within the first year of the Project, it is advisable to rethink, take action quickly to simplify or downsize expectations and move on. Response in AF Design 8. The AF is focusing the activities and expected results on the LC and scaling up the CLS concept. This is building on both the strengths of LAP2 but also filling in the gaps. The AF will not rely on any external funding and includes in the Bank preparation team a full complement of land administration professionals, with skills in ICT, surveying and mapping, land economy, public management and title registration. 9. While the CSAUs have improved services for customers of the LC through a streamlined front office, the AF will focus on streamlining the back-office functions including finalizing the rollout of GELIS. But more will be needed - further business process re-engineering, training and additional efforts to eliminate the backlog in the title registry, including changing the culture of work in the LC. The AF will support these activities as well as building public awareness and customer feedback mechanisms to ensure that citizens are engaged and hold the LC and CLSs accountable. 10. The lessons learned on ICT are well known and while the AF will include some further development of the system, the technical specifications for the additional modules have been prepared and the LC will move quickly to contract this additional development. The experience gained in managing the GELIS contract will be valuable for this next phase of development. 11. The revisions to the PDO indicators have attempted to broaden the way progress towards the PDO is measured beyond efficiency while at the same time maintaining key indicators that will help to track improvements in the LC’s core business of registering titles and deeds. Page 65 of 65