AFRICAN DEVELOPMENT FUND Language: English

Original: French

APPRAISAL REPORT

CADASTRAL SURVEY MODERNIZATION SUPPORT PROJECT

REPUBLIC OF SENEGAL

COUNTRY OPERATIONS DEPARTMENT OCCW WEST REGION February 2005

TABLE OF CONTENTS

PROJECT INFORMATION SHEET, MONETARY EQUIVALENTS, WEIGHTS AND MEASURES, FINANCIAL YEAR, LIST OF ANNEXES, LIST OF ABBREVIATIONS, SOCIO-ECONOMIC INDICATORS, PROJECT MATRIX, EXECUTIVE SUMMARY I. ORIGIN AND HISTORY OF THE PROJECT 1 II. AREAS OF INTERVENTION 2 2.1 Land Tenure System 2 2.2 Procedure for Establishing a Title Deed at the Cadastral Survey Office 4 2.3 Procedure for Establishing a State Property Title Deed 5 2.4 Cadastral Survey, State Property and Real Estate Operators 5 2.5 Major Constraints Identified 11 2.6 Lessons from Bank’s Past Experiences 12 III. POVERTY REDUCTION STRATEGY AND THE NATIONAL GOOD GOVERNANCE STRATEGY 13 3.1 Poverty Reduction Strategy 14 3.2 National Good Governance Program (NGGP) 14 3.3 NGGP Financing 15 IV. THE PROJECT 16 4.1 Project Design and Rationale 16 4.2 Project Zones and Beneficiaries 16 4.3 Strategic Context 17 4.4 Project Goal and Objective 17 4.5 Project Description 17 4.6 Project Cost 21 4.7 Sources of Financing and Expenditure Schedule 22 V. IMPLEMENTATION 23 5.1 Executing Agency 23 5.2 Institutional Arrangements 23 5.3 Implementation and Supervision Schedule 24 5.4 Procurement Arrangements 24 5.5 Disbursement Arrangements 26 5.6 Monitoring and Evaluation 27 5.7 Financial and Audit Reports 28 5.8 Donor Coordination 29 VI. PROJECT SUSTAINABILITY AND RISKS 30 6.1 Recurrent Expenditure 30 6.2 Sustainability of Project Impact 30 6.3 Major Risks and Mitigating Measures 31 VII. PROJECT BENEFITS 31 7.1 Economic and Social Benefits 31 7.2 Impact on Cross-cutting Issues 32 VIII. CONCLUSIONS AND RECOMMENDATIONS 33 8.1 Conclusions 33 8.2 Recommendations 33 Messrs. G. GALIBAKA, Country Economist, OCCW (Head of Mission) and F. BAUDIN, Principal Legal Advisor, GECL.1, prepared this report with the assistance of Mr. A. MAIGA, Systems Analyst, CIMM.1 and a Consulting Economic Statistician, following their appraisal mission to Senegal from 22 November to 4 December 2004. Further information may be obtained from Messrs. A. ZEJLY, Division Manager, OCCW.2 and J.M. GHARBI, Director, OCCW.

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AFRICAN DEVELOPMENT FUND

100602, TUNIS BELVEDERE

Tel.: (216) 71 10 20 33: Fax: 216 71 33 28 06

PROJECT INFORMATION SHEET

Date: December 2004 The following information aims to provide some general guidelines to all suppliers, contractors and any other persons interested in the procurement of goods and services for projects approved by the Board of Directors of the Bank Group. More detailed information may be obtained from the Executing Agency of the Borrower. 1. Country : Republic of Senegal 2. Project Name : Cadastral Survey Modernization Support Project 3. Location : Forty urban localities in Senegal 4. Donee : Ministry of Economy and Finance 5. Executing Agency : Project Implementation Unit within the General Directorate of Tax and State Property 6. Project Description : The key project components include:

i) Cadastral survey capacity building; ii) Capacity building with regard to State property, tax system verification,

administration and coordination; and iii) Project management.

7. Project Cost : UA 2.91 million 8. Bank Group Grant ADF Grant : UA 2.50 million (86%) 9. Other Sources Government : UA 0.41 (14%) 10. Probable Date of Approval : April 2005 11. Project Start-up Date and Duration : July 2005 for 30 months 12. Procurement of Goods and Services

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Technical Assistance The project will finance technical assistance comprising: Three (3) surveyors and six (6) senior surveying technicians for the duration of the project (30 months), procured on the basis of a short list; an international consultant to prepare the DGID computerization master plan, three international consultants to conduct three (3) studies on the reform of DGID structures, the contribution of sectors to fiscal revenue and a fiscal simulation model, an international consulting firm to conduct a cadastral survey computerization study and compile a database, and a consultant to prepare the administrative, financial and accounting procedures manual for the project will also be procured on the basis of a short list. Lastly, the preparation of a cadastral map and a monographic study on the reference sites will be procured on the basis of a short list.

Training and Sensitization Campaign The project will finance: The training of 6 staff from the Computerization and Services Modernization Department of the General Directorate of Tax and State Property (Direction générale des Impôts et des Domaines, DGID), including three (3) in network administration and three (3) others in the Microsoft Exchange messaging system. The training centers will be selected through shopping on the basis of a short list. Two (2) annual sensitization campaigns throughout the project duration on cadastral survey modernization and women’s property rights will be organized by the DGID and the Senegal Women Lawyers Association through direct negotiation (both are the only structures with appropriate expertise in their respective lines of activity).

Equipment, Supplies and Miscellaneous Goods financed under the project include various computer hardware, topographic and reprographic equipment, data processing software, servers, office furniture and equipment. In accordance with ADF rules, the International Competitive Bidding (ICB) procedure will be used in the procurement of computer hardware and topographic equipment. For the procurement of reprographic equipment, the Limited International Bidding (LIB) procedure will be used. The national shopping (NS) procedure will be used in the procurement of office equipment, electric materials, servers, software and computer hardware during the first year of the project.

Operation The operating expenditure covered by the project includes the purchase of office supplies and consumables (through national shopping). Other operating expenditure headings comprise computer maintenance charges, allowances and per diem, other maintenance, communications and general expenses.

Audit

The project’s three auditing operations will be subject to competitive bidding on the basis of a short list of auditing firms.

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MONETARY EQUIVALENTS

(December 2004)

Currency unit = CFA Franc UA 1 = USD 1.53590 UA 1 = Euro 1.115525 UA 1 = CFAF 757.794

WEIGHTS AND MEASURES

Metric System

Financial Year

1 January – 31 December

LIST OF TABLES Tables 4.1 Cost Estimate by Component 4.2 Cost Estimate by Expenditure Category 4.3 Sources of Financing 4.4 Expenditure Schedule by Component 4.5 Expenditure Schedule by Source of Financing 5.1 Estimated Project Implementation Schedule 5.2 Procurement Arrangements LIST OF ANNEXES Annex 1 Map of Senegal and of the Project Zones Annex 2 Portfolio of Ongoing Projects as at 31 December 2004 Annex 3 Detailed Project Outputs Annex 4 PACOMA Organization Chart Annex 5 List of Goods and Services Annex 6 Detailed Cost by Component Annex 7 TOR for a Study on the Reform of Senegal’s Fiscal Administration Annex 8 TOR for the Preparation of a Computerization Master Plan Annex 9 TOR of the Study on the Contribution of Sectors and Sub-sectors to Fiscal

Revenue Annex 10 TOR of Technical Assistance Staff Annex 11 TOR of the Manager of the Project Implementation Unit Annex 12 List of Localities with Aerial Pictures Covered by the Project

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ACRONYMS AND ABBREVIATIONS AFDS Social Development Fund Agency APIX Agency for the Promotion of Investments and Large Scale Works BCEAO Central Bank of West African States CIB Consolidated Investment Budget WB World Bank CCOD State Property Operations Control Commission ECOWAS Economic Community of West African States CFCE Employer’s Flat Rate Tax (Contribution forfaitaire à la charge de l’employeur) CFPB Developed Property Tax (Contribution foncière sur les propriétés bâties) CFPNB Undeveloped Property Tax (Contribution foncière sur les propriétés non bâties) PIU Project Implementation Unit CFAA Country Financial Accountability Assessment CGI General Tax Code (Code général des impots) CGU General Single Tax (Contribution globale unique) CNP National Employers Council (Conseil National du Patronat) CPAR Country Procurement Assessment Review CSF Tax Services Center (Centre de services fiscaux) CSFR Regional Tax Services Center (Centre de services fiscaux régionaux) CSPLP Poverty Reduction Program Monitoring Unit DC Cadastral Survey Office DCEF Directorate of Economic and Financial Cooperation DDI Directorate of Debt and Investment DEDT Directorate of Registration, State Property and Stamp Duty DGCPT General Directorate of Public Accounting and Treasury DGID General Directorate of Taxation and State Property DIE Directorate of Government Computerization DMP Public Management Delegation (Délégation au Management Public) DPS Directorate of Projection and Statistics DSF Statistics and Fiscal Declaration PRSP Poverty Reduction Strategy Paper DTAI Directorate of Automatized Information Processing DVET Directorate of Verification and Tax Investigation (Direction des vérifications et des enquêtes fiscals) ESP Higher Polytechnic Institute (Ecole supérieure polytechnique) ADF African Development Fund IMF International Monetary Fund EDMS Electronic Document Management System INSEE National Institute of Statistics and Economic Studies (France) IR Individual Income Tax (Impôt sur le revenu des personnes physiques) IRC Tax on Loans Income, Deposits and Guarantees (Impôt sur les revenues de créances, dépôts et cautionnement) IRVM Tax on Securities Income (Impôts sur les revenus des valeurs Mobilières) IS Company and Corporate Tax (Impôts sur les sociétés et autres personnes morales) MEF Ministry of Economy and Finance

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MUAT Ministry of Urban Development and Physical Planning NEPAD New Partnership for Africa’s Development NINEA National Identification Number for Companies and Associations (Numéro d’Identification National des Entreprises et Associations) NICT New Information and Communication Technology NGO Non-Governmental Organization GDP Gross Domestic Product PRP Poverty Reduction Plan LDC Least Developed Country SME Small and Medium-Scale Enterprise SMI Small and Medium-Scale Industry NGGP National Good Governance Program UNDP United Nations Development Program PIPP Private Investment Promotion Project HIPC Heavily Indebted Poor Countries PTIP Three-Year Public Investment Program RAS Deduction at Source on Emoluments, Salaries and Pensions (Retenue à la source sur les traitements, salaires et pensions) ROSC Report on the Observance of Standards and Codes NAS National Accounting System DFS Decentralized Financial Systems SGDD Data Management and Distribution System (Système de Gestion et de Diffusion des Données) SIGTAS Standard Integrated Government Tax Administration System TOR Terms of Reference EMTR Effective Marginal Tax Rate TGFO Table of Government Financial Operations PPT Petroleum Products Tax VAT Value Added Tax UA Unit of Account EU European Union WAEMU West African Economic and Monetary Union USAID United States Agency for International Development WBS Work Breakdown Structure ZAC Concerted Development Zone (Zone d’aménagement concerté)

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SENEGAL: MATRIX OF THE CADASTRAL SURVEY MODERNIZATION SUPPORT PROJECT Design Team: Gilbert GALIBAKA, Economist, OCCW.2

Hierarchy of Objectives Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Assumptions/Risks

Overall Project Goal Contribute to good governance by improving the mobilization of internally-generated resources and the business environment, with a view to sustainable growth with significant impact on poverty reduction

1.1 The share of internally-generated resources in the budget increases from 42% in 2004 to 43% in 2006 and 45% in 2008 1.2 The contribution of the private sector to the GDP increases from 70% in 2003 to 72% in 2006 and 74% in 2008 1.3 The growth rate in real terms remains above 6% between 2005 and 2008 1.4 The proportion of the population living below the poverty level drops from 48.5% in 2003 to 46.5% in 2006 and 45% in 2008

Reports of the DPS, the DGID, the PCRBF, the Poverty Control Unit and the Ministry of Economy and Finance

Specific Project Objective Contribute to the digitization of cadastral survey so as to ensure more effective land control, improve access to ownership and fiscal revenue.

2.1 Property tax output increases from 1.4% in 2003 to 2% in 2006 and 3% in 2008 2.2 The number of land parceling dossiers processed by the Cadastral Survey Office increases from 3000 in 2003 to 6000 in 2006 and 12000 in 2008 2.3 The timeframe for acquiring the title deed is reduced from 4 years in 2003 to 1 year in 2006 and 4 months in 2008 2.4 The number of title deeds increases from 40 000 in 2003 to 60 000 in 2006 and 80 000 in 2008

Reports of the DGID, the PCRBF, the DPS, the DTAI and the Ministry of Economy and Finance.

The DGID takes ownership of the reforms Technical assistance staff are replaced with Senegalese counterparts Equipment maintenance is guaranteed

Project Output 1. Strengthen the cadastral survey capacity 2. Strengthen the capacity of the State Property Department and the Cadastral Survey Office

3.1 The database on cadastral survey and fiscal information is put in place; the cadastral map and the database are exploited via the geographic information system 3.2 The new property ownership bill is passed by the end of December 2006 3.3 The reform of the DGID administrative structure is completed by the end of 2006 3.4 The DGID computerization master plan is updated by mid-2006 3.4 Provision of the DC with computer hardware, topographic and reprographic equipment 3.5 Existence of 40 cadastral plans and a national cadastral plan exploited via the GIS 3.6 Three engineers and six technicians take over from the technical assistance staff 3.7 Existence of a new property ownership system 3.8 Three studies are available and their recommendations implemented 3.9 Six staff of the DGID Computerization and Services Modernization Department are trained 3.10 Fiscal revenue projections are more realistic 3.11 Three sensitization campaigns are conducted at end 2005, end 2006 and 2007 3.12 The image of the Cadastral Survey Office and the Public Lands Department is rehabilitated among users

Reports of the DGID, the PCRBF, the DPS, the DTAI and the Ministry of Economy and Finance

Unflinching political will and strong involvement of the DGID

Key Activities 1. Technical assistance 2. Training and sensitization campaign 3. Equipment, supplies and miscellaneous 4. Operation, including audit

Resources (in UA million) Grant/ADF Govt. Total Cost 2.50 0.41 2.91 Goods 1.19 0.31 1.51 Services 1.07 0.00 1.07 Operation 0.03 0.09 0.12 Contingencies 0.21 0.21 TOTAL: 2.50 0.41 2.91

Contracts of technical assistance staff and consultants Training evaluation report and reports of the PIU Supplies contracts for computer hardware, topographic/reprographic equipment, consumables and furniture.

ADF grant and counterpart resources put at project disposal Technical assistance staff and consultants are recruited within the specified timeframe

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EXECUTIVE SUMMARY 1. Donee : Republic of Senegal 2. Executing Agency : PIU within the DGID 3. Sector : Multisector

4. Project Background

In the mid-nineties, Senegal undertook a series of reforms supported by the Bretton Woods Institutions and other development partners, including the Bank. Those reforms contributed to maintaining the GDP growth at an average 5.4% in real terms, thus marking the first period of steady growth ever recorded since independence. In connection with public finance, the Government pursued its revenue improvement policy without increasing the fiscal pressure, even as it controlled public expenditure through enhanced allocation and quality. Furthermore, the Government, the World Bank and the ADB jointly evaluated the CFAA/CPAR in 2002/2003, and an action plan was adopted in June 2003. At the fiscal level, two edicts were promulgated on 6 February 2004 – one modifying some provisions of the general tax code, the other instituting a special fiscal regularization assistance procedure. Specifically with regard to the Cadastral Survey Office and the State Property Department, the CFAA action plan includes provision to conduct an exhaustive diagnosis of both departments with a view to their restructuring and modernization. Apart from the need to secure ownership, the Cadastral Survey Office and the State Property Department offer considerable public finance resources mobilization possibilities. Indeed, the nine (9) fees and taxes in force in the sub-sector generate ludicrous returns, with receipts representing about 0.25% of the GDP.

In order to implement this component of the action plan on the modernization of cadastral survey and within the context of the World Bank-funded Private Investment Promotion Project (PIPP), the Government commissioned an international consulting firm to conduct a feasibility study on the issue. The report of the study first highlighted Senegal’s specificity, namely the fact that cadastral and State property operations are exclusively conducted by a general directorate within the Ministry of Economy and Finance, whereas in other countries such activities are handled either by the Ministry of Urban Development or the Ministry of Construction and Housing. Furthermore, it demonstrated that the image of the Cadastral Survey Office, the State Property Department and the Land Registration Department is tarnished by persisting constraints (principally the obsolete land legislation, the manual operating procedures and shortage of human, material and financial resources of Government departments in the three areas). Consequently, the study recommended the modernization of the Cadastral Survey Office, the State Property Department and the Land Registration Department with a view to restoring confidence between them, economic operators and development partners. As one of the pillars of the poverty reduction strategy, the National Good Governance Program (prepared in June 2002) took up the challenge. The NGGP comprises six (6) components, namely: public service quality improvement, economic governance, local governance, judicial governance, improvement of the quality of parliamentary deliberations; and the development of New Information and Communication Technologies.

Taking the NGGP objectives into account (see 3.3 and 3.4) and the constraints highlighted in Chapter II, the development partners opted to extend their support within the NGGP context, under the coordination of the Public Management Delegation (DMP). Thus, the UNDP is in charge of political/local governance, in addition to the cross-cutting capacity building

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component. The World Bank, the European Union and CIDA already participate in the economic governance component and have undertaken to support the Judiciary Sector Program under the judicial governance component. Other bilateral donors (French Cooperation, Belgium and Japan) have also undertaken to contribute to the NGGP financing. For its part, the Bank in April 2004 received Government’s request to offer financial support for the modernization of cadastral survey in urban localities. The project conforms with the Bank’s governance policy and the priorities outlined in the results oriented strategy paper now being finalized. Following that request and during the preparatory mission on Senegal’s governance profile in mid-October 2004, the Bank tapped from information contained in that report and collected additional data which provided the background for project preparation. Based on the conclusions of the preparation mission, an appraisal mission was conducted from 22 November to 4 December 2004. During the preparation and appraisal, the mission worked in close collaboration with all the departments of the General Directorate of Tax and State Property, other operators involved in cadastral, State property and LAND REGISTRATION activities (notaries public, surveyors, the Office of the Mayor of Dakar and the Department of Topography), the Ministry of Urban Development and Physical Planning, the civil society, the Budgetary and Financial Reforms Coordination Project, the Automatic Information Processing Department, the Delegation of Public Management and the development partners. 5. Purpose of the Grant The ADF contribution/grant in an amount not exceeding UA 2.5 million, net of customs duty and taxes, will finance 100% of the foreign exchange cost of UA 2.43 million and the local currency difference amounting to UA 0.07 million, i.e. 86% of the total project cost. 6. Sector Objective and Specific Objective of the Project The project’s sector objective is to contribute to good governance by improving the mobilization of internally-generated resources and the business environment with a view to sustainable growth that would have a significant impact on poverty reduction. Specifically, the project aims at contributing to the digitization of cadastral survey to ensure more effective control with a view to improving access to ownership and fiscal revenue. 7. Project Description The three project components include:

(i) Strengthening the capacity of the Cadastral Survey Office; (ii) Capacity building with regard to State property, tax system verification,

administration and coordination; and (iii) Project management.

8. Project Cost The cost of the project, net of taxes and customs duty, is estimated at UA 2.91 million, including UA 2.43 million in foreign exchange (83.50%) and UA 0.48 million in local currency (16.50%).

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9. Sources of Financing The project will be financed with a UA 2.50 million ADF grant sourced from ADF-IX balances (i.e. 86% of the total cost, excluding taxes and customs duty). The Government will contribute 14% of the project cost, i.e. UA 0.41 million. 10. Implementation 10.1 The PIU within the DGID will implement the project. Project activities are scheduled to span thirty (30) months, starting with entry into force (circa June 2005). 10.2 Furthermore, a Steering Committee headed by the Director-General of Tax and State Property will supervise the activities of the Unit and serve as its secretariat. The Committee will comprise a representative drawn from each of the two key beneficiary departments (Cadastral Survey Office, State Property), a representative of the Chamber of Notaries Public, a representative of the Order of Surveyors, a representative of locally elected officials, a representative of the Ministry of Urban Development and Physical Planning, a representative of the DTAI, a representative of the Employers Association, a representative of the DCEF and a representative of the Department of Local Governments. Under the authority of the Committee, the Project Implementation Unit will prepare and forward quarterly reports and other documents on the project to the Fund. 11. Conclusions and Recommendations 11.1 Conclusions 11.1.1 The project as discussed was prepared and appraised using the participatory process that associated all stakeholders involved in cadastral survey, State property and land registration activities, and all the development partners. It focuses solely on urban localities and its formulation took into account lessons drawn from past or ongoing operations, especially those of the Bank, the World Bank, the European Union and CIDA – all participants in the economic governance component of the NGGP. 11.1.2 The project is in line with Government’s action plan on budgetary and financial reforms as contained in the economic governance component of the NGGP. Moreover, it is in keeping with the Government’s poverty reduction strategy, of which the NGGP is a pillar. In terms of output, it will permit the adoption of a new land tenure law, the implementation of a new DGID organization chart, a new DGID computerization master plan, the digitization of cadastral survey, State property and land registration activities, the production of a national cadastral plan based on regional cadastral plans and the setting up of a GIS-based database. By enabling the modernization of cadastral survey, State property and land registration activities, these outputs will contribute to improving internally-generated resources mobilization and the business environment, with a view to poverty reduction. 11.2 Recommendations It is recommended that the Government of Senegal be awarded an ADF grant in an amount not exceeding UA 2.5 million to finance the project described in this report.

I. ORIGIN AND HISTORY OF THE PROJECT 1.1 In the mid-nineties, Senegal undertook a series of reforms supported by the Bretton Woods Institutions and other development partners, including the Bank. Thanks to these reforms, the GDP growth averaged 5.4% in real terms, thus marking the first period of sustained growth since independence. With regard to public finance, the Government pursued its revenue improvement policy without increasing the fiscal pressure, even as it sought to control public expenditure by improving its allocation and quality. Moreover, the Government, the World Bank and the ADB jointly conducted a CFAA/CPAR evaluation in 2002/2003, and an action plan was launched in June 2003. At the fiscal level, two bills (one modifying certain provisions of the general tax code, the other instituting a special fiscal regularization assistance procedure) were passed on 6 February 2004. Specifically in connection with the Cadastral Survey Office and the State Property Department, the CFAA action plan includes provision to conduct a comprehensive diagnosis of both services with a view to their restructuring and modernization. Apart from the need to secure ownership, cadastral survey, State property and land registration activities offer possibilities for considerable public finance resources mobilization. Indeed, the nine (9) fees and taxes in force in the sub-sector generate ludicrous returns with receipts representing about 0.25% of the GDP. 1.2 In order to implement the cadastral survey modernization component of the action plan and within the context of the World Bank-funded Private Investment Promotion Project (PIPP), the Government commissioned an international consulting firm to conduct a feasibility study on such modernization. The report of the study first highlighted Senegal’s specificity, namely the fact that land registration, State property and land registration activities are exclusively handled by a general directorate within the Ministry of Economy and Finance, whereas in other countries such activities are assigned to either the Ministry of Urban Development or the Ministry of Construction and Housing. Furthermore, it demonstrated that the image of the Cadastral Survey Office and the Land Registration Department is tarnished by the persisting constraints, especially the obsolete land legislation, the manual operating procedures and shortage of human, material and financial resources of Government departments in the three areas. Consequently, the study recommended the modernization of these activities as a means of restoring confidence between the Government departments in charge, economic operators and development partners. As one of the pillars of the poverty reduction strategy, the National Good Governance Program (prepared in June 2002) took up the challenge. The NGGP comprises six (6) components, namely: public service quality improvement, economic governance, local governance, judicial governance, improvement of the quality of parliamentary deliberations; and development of New Information and Communication Technologies. 1.3 Taking the NGGP objectives into account (see 3.3 and 3.4) and the number of constraints highlighted in Chapter II, the development partners opted to extend their support within that program context, under the coordination of the Public Management Delegation (DMP). Thus, the UNDP is in charge of political/local governance, in addition to the cross-cutting capacity building component. The World Bank, the European Union and CIDA already participate in the economic governance component and have undertaken to support the Judiciary Sector Support Program under the judicial governance component. Other bilateral donors (French Cooperation, Belgium and Japan) have also undertaken to contribute to the NGGP financing.

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1.4 For its part, the Bank in April 2004 received Government’s request to provide financial support alongside other partners to the modernization of cadastral survey in urban localities. The project conforms with the Bank’s governance policy and the priorities outlined in the results oriented strategy paper now being finalized. Following that request and during the preparatory mission on Senegal’s governance profile in mid-October 2004, the Bank tapped from information contained in that report and gathered additional data which provided the background for project preparation. Based on the conclusions of the preparation mission, an appraisal mission was conducted from 22 November to 4 December 2004. During preparation and appraisal, the mission worked in close collaboration with all the departments of the General Directorate of Tax and State Property, other operators involved in cadastral survey, State property and land registration activities (notaries public, surveyors, the Office of the Mayor of Dakar and the Department of Topography), the Ministry of Urban Development and Physical Planning, the civil society, the Budgetary and Financial Reforms Coordination Project, the Directorate of Automated Information Processing, the Public Management Delegation and the development partners especially the UNDP, the World Bank, the European Union, CIDA and the French Development Agency (AFD). II. AREAS OF INTERVENTION 2.1 The project will concentrate on cadastral survey, State property and land registration activities, all three characterized by the obsolescence of texts and ignorance over the actual land situation, the scarcity of resources in various government departments and the unsuitable organization chart of the General Directorate of Tax and State Property (Direction générale des Impôts et des Domaines, DGID). Therefore, this chapter will discuss four issues, namely: (i) review of the organic texts and the status of the land tenure system; (ii) exhaustive description of the title deed establishment process; (iii) assessment of the institutional and organizational capacities of stakeholders; and (vi) review of the performance of similar Bank operations. The Land Tenure System 2.2 Apart from the constitution which recognizes the right to ownership in general and the right to land ownership in particular (Article 15), land tenure in Senegal is governed by two (2) basic texts. The first of such texts is the decree dated 26 July 1932 concerning the organization of land tenure in French West Africa. The text which dates back to the colonial era, sought to guarantee landed property owners security over the rights that they have on such property through the institution of the title deed which conferred permanent and inalienable ownership right, and put at the public disposal all information on landed property. Its ultimate objective was to facilitate real estate transactions, while guaranteeing credit security. Although the text has been modified in line with the legal changes in the wake of the country’s accession to independence, it has not been adapted sufficiently to Senegal’s recent socio-economic trends and the international context characterized by globalization. Hence, its content which dated back to more than half a century had been in want of a complete revision - which the Government undertook by forwarding a draft new property law to the National Assembly in October 2004 (see § 2.5). The second text is Edict No. 64-46 of 17 June 1964 on State property, completed with its implementation order (Edict 64-573 of 30 July 1964). This law governs nearly 95% of land in Senegal classified as State-owned. The remaining 5% comprises “all land not classified as State-owned, unregistered or whose ownership is not recorded at the mortgage registry.”

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2.3 State-owned lands are held by the Government to ensure rational use and development in accordance with development plans and programs. They are alienable and the related rights are imprescriptible. Therefore, the State can only transfer such lands on condition that it first registers its ownership over them. These lands are divided into four zones, namely: (i) the country-side, regularly exploited for rural housing, farming and stock raising; (ii) the urban zones, located in communal territory; (iii) the reserves, for forestry or protection purposes; and (iv) the pioneer zones. It is worth noting that the second text (Edict No. 64-573) introduced a key innovation which abolished the customary land ownership system. Indeed, the land decree of 26 July 1932 maintained customary management with a view to protecting indigenes from the harmful and abusive impact of the notion of vacant and ownerless lands, under which lands in the colonies were classified at the time. The Legislator had ruled that lands not classified as public-owned, unregistered lands or lands whose ownership was not recorded at the mortgage registry should be declared as national property. Such lands located on the territory of rural communities are managed by such communities, subject to State control. It should also be pointed out that from such land typology emanates land tenure characterized by two systems: the land register system, also called the registration system, and the State property system that takes into account public lands, private lands and national lands. The land register is a ledger on which changes on real estate ownership and other property rights are recorded, one page per property. For its part, the State property system involves the administration and alienation of the totality of landed property belonging to public bodies. 2.4 Other texts complete this institutional mechanism: Edict 76-66 of 2 July 1976 concerning the State property code which distinguishes public property from private property. Public property comprises such property which, due to its nature or location, is not subject to private appropriation. For its part, is considered private such property whose legal statutes come under the province of private law. Lastly, the 22 March 1996 decentralization edicts and the related implementation orders specifically permit the transfer of authority and resources to local governments, including over land. 2.5 Government’s new draft land tenure bill: Government’s new draft land tenure bill (presented in October 2004 before the National Assembly) proposes major innovations in terms of the operating procedures, particularly: (i) display advertising [posting], reduced from 90 days to 55 days; (ii) the boundary marking timeframe which, in the old text, was at the discretion of the Cadastral Survey Office, is now fixed at 10 days following the receipt of the request; and (iii) publication in any journal instead of the exclusive monopoly of the official journal. Furthermore, the new text harmonizes with Senegalese laws in areas where some aspects of the land legislation continue to refer to French Law. Lastly, the new text lays the groundwork for the computerization of the sector by stating (Article 15) that all land ledgers and corresponding dossiers (i.e. all land registration media) may henceforth be kept in magnetic form. This innovation fills a legal vacuum by giving a legal basis to the generalized computerization of land registration and the latter’s use of certain computerized procedures. 2.6 Therefore, based on the analysis of various texts, it is obvious that Senegal’s land legislation is obsolete and inadequate. Cadastral survey, State property and land registration activities face problems among which the long display advertising timeframe, the boundary marking timeframe which is left at the discretion of surveyors, the total monopoly over land announcements granted exclusively to the official journal as well as the legal vacuum over using computerization in land registration procedures. Therefore, this legislation is one of the causes of long delays in the production and establishment of title deeds. Women are the

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principal victims of these weak points since they find it harder to access property ownership, worsened by persisting negative sociological factors. To overcome such constraints and as stated in § 2.4, the Government forwarded to the National Assembly a draft bill which reduces these timeframes and automatizes the operating procedures with a view to limiting discriminatory practices, improving fiscal resources mobilization and the business climate. This Government approach will be accompanied with information and sensitization activities especially on the modernization of cadastral survey and women’s right to access property. These actions will be jointly conducted by the General Directorate of Tax and State Property, and the Senegal Women Lawyers Association. 2.7 Furthermore, it should be pointed out that this land legislation distributes activities between the Cadastral Survey Office, the State Property Department and the Land Registration Department. Thus, cadastral survey activities involve the physical description of the landed property with the aid of topographic techniques, leading to such operations as demarcation, boundary marking, registration and parceling, pursuant to the provisions of Edict No. 007679/MEF/DGID of 15 September 2004 of the Ministry of Economy and Finance. Other cadastral activities include: monitoring the occupation of administrative allotments, centralization of topographic work executed by public departments and private agencies, reproduction of plans and delivery of plan abstracts, assessment and monitoring of the lease value of developed and undeveloped property. For their part, State property is defined as a set of property belonging to public bodies or over which such bodies only exercise management. Their administration and alienation are subject to special regulations under the State property system as described at the end of § 2.3. Thus Article 45 of the Edict of 15 September 2004 confers to the State Property Bureau authority to inventorize the management of State property, charge fees for occupation of such property, procure and alienate moveable and fixed assets belonging to the State, other public bodies or establishments, monitor State property, monitor investigations into such property, control related operations conducted by the State, local government and particularly the communes. Lastly, land registration offers owners guarantee on rights over property that they own and that fall under the registration system. Such guarantee is secured through the publication in the land ledger (§ 2.3) of the related property rights and modifications of such rights. Thus, pursuant to Article 10 of the 1932 land decree, land registrars are charged with: (i) replying to registration requests and formalities for registration on the land ledgers; (ii) registering, following the issuance of title deeds and copies thereof, property rights on registered property which, for that reason, are billed for publication; (iii) recording deeds and plans on registered property and communicating to the public such information as contained in the archives of registered property. In carrying out his/her mission, the registrar uses a number of documents, particularly the land ledger (a register containing title deeds), the register of formalities precedent to registration, the register of opposition, the register of deposit of deeds and documents to register, and the repertory of holders of property rights.

Procedure for Establishing a Title Deed at the Cadastral Survey Office 2.8 The procedure for establishing a title deed is based on the provisions of the two substantive texts regulating land tenure in Senegal (§ 2.2). Hence, manual operating procedures are used, and the equipment is inadequate and obsolete. The property concerned is either registered for the first time in the land ledger system or is put under parceling if it involves the separation of part of the title deed. In either case, the dossier circulation procedure is the same; the only difference lies in the boundary marking timeframe which

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ranges from three to six months in the case of dossier registration, including insertion in the official journal, and from one to three months for the parceling dossier. 2.9 In terms of registration, the request (comprising the property plan and a copy of the official journal mentioning the registration order) is forwarded from the Land Registration Department to the Cadastral Survey Office. At this level, the surveyor conducting the boundary marking takes charge of activities spread over in three phases. The first phase which takes three to four months (the new draft land law reduces the timeframe to ten days) consists in running a conformity check on the plan attached to the dossier, preparing the technical dossier especially the table of coordinates, the calculation of bearing and distance, the calculation of capacity, tracing and printing, the viewing angle charts, topographic sketches and miscellaneous calculations. The second stage involves boundary marking and preparation of the boundary marking report. Subsequently, the dossier is forwarded for control with a view to the provisional update of the land map, preparation of plans for the technical dossier and production of a copy of the title deed. The final stage involves registration in the dossiers logbook and assigning of a dossier number; the dossier containing copies of both the title deed and the official journal is forwarded to the Land Registration Department. Due to the inadequate material and human resources highlighted in § 2.16 to 2.21, this procedure takes a longer period than indicated. The Land Registration Department treats 3 000 to 4 000 parceling dossiers yearly, against a target of 12 000 dossiers.

Procedure for Establishing a State Property Title Deed 2.10 The procedure for establishing a State property title deed differs, depending on whether it involves a new creation or the parceling of an existing deed. For establishing a new deed, similarities exist between the State-related phase, the actual land acquisition phase (§ 2.8 & 2.10) and the dossier preparation phase. The last phase basically includes preliminary inquiry, the preparation of the decree(s) ordering the registration, the retirement and the possible payment of compensation (which should be estimated beforehand), all of which stretches the duration for acquiring a title deed to between three to five years. For the parceling of an existing deed, the procedure basically involves dividing the deed in question into two or several title deeds. In either case, the Land Registration Department intervenes at the start and end of the process. Indeed, it is responsible for reviewing the registration request dossiers and forwarding them to the Cadastral Survey Office which, in turns, returns the dossiers to the former after processing. Subsequently, the Land Registration Department also handles the registration formality in the Land Ledger, the registration of the property rights to be published, the archiving of deeds and plans on property registered, and communication of all such information to the public. The Land Registration Department also updates the repertory of property rights owners, the register of registration follow-up and the register of opposition. In the view of notaries public and economic operators, this procedure is unusually long due to the absence of dematerialization (i.e. computerized entry of ownership) and the low level of computerization of the service. Cadastral Survey, State Property and Real Estate Operators 2.11 Several operators intervene in cadastral survey, State property and land registration activities, especially the DGID through the Cadastral Survey Office, the Directorate of Registration, State Property and Stamps (DEDT), the Directorate of Verification and Tax Investigations (DEVF), as well as the Order of Surveyors, the Chamber of Notaries Public and the Ministry of Urban Development and Physical Planning (MUAT).

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2.12 The Cadastral Survey Office: pursuant to the land legislation regulation and Edict No. 007679/MEF/DGID of 15 September 2004 of the Ministry of Economy and Finance, most of the activities described in § 2.8 and 2.9 are undertaken by the Cadastral Survey Office with the assistance of six departments (the department of studies, the department in charge of parceling and land matters, the photogrammetry and computerization department, the evaluation department, the documentation and land registration department and the department of logistics and budget). The department of studies is charged with all basic topographic and cadastral work as well as general work on cadastral triangulation, polygonation, leveling, stereo preparations, preparation of technical documents necessary for the drawing of new land maps, re-parceling and property appraisal, preparation of technical documents necessary for property appraisal in connection with expropriations, acquisition of private property, State-owned and national lands, control and centralization of topographic work conducted by public departments and private agencies. 2.13 The department of parceling and land matters is responsible for all activities connected with the preparation of administrative allotments, in liaison with the Directorate of Urban Development and Architecture (§ 2.31), control of approved allotments, control of allotments conducted by chartered surveyors, control of occupation of parcels of State property and file management in concert with the Directorate of Registration, State Property and Stamps; control of the technical application of physical development plans, delivery of conformity certificates and reception of private allotments; control and delimitation of appurtenances on State property. Furthermore, the department participates in preparing dossiers on the transfer or allocation of State property. The photogrammetry and computerization department is responsible for preparing and registering cadastral plans, delivering plans or plan abstracts; designing, controlling and monitoring large-scale map production projects (aerial photography, reproduction, printing and harmonization of cartographic norms); archiving and registration of cadastral maps and photographic missions; and geographic information systems management. The evaluation department is responsible for property evaluation and counter-valuation, monitoring rent, fixing the updating and revaluation coefficients applicable to ratable value based on the weighted construction price index, designing and preparing cadastral survey documents. Lastly, the land archiving department is charged with the centralization of land documentation, control of technical dossiers, archiving and preservation of technical dossiers, as well as delivery of cadastral certificates (see § 2.7). 2.14 Furthermore, it is worth noting that the Director of the Cadastral Survey Office also plays the role of Government Commissioner vis-à-vis the Order of Surveyors. He ensures compliance with the Body’s standing orders and is the legally-recognized expert on issues pertaining to the physical boundary of plots since the structure over which he presides oversees cadastral registration. Documents filed at the Cadastral Survey Office are valid and constitute proof of plot delimitation and boundary marking. 2.15 Nationwide, the Cadastral Survey Office has 18 Cadastral Agencies, including seven (7) in the Dakar Region (Dakar Plateau I Agency, Dakar Plateau II Agency, Greater Dakar Agency, Sanitized Plots Agency, Pikine Agency, Guediawaye Agency, Rufisque Agency), two in the Thies Region (Mbour and Thies City) and one in each of the following regions: Diourbel, Fatick, Kaolack, Kolda, Louga, Matam, Saint Louis, Tambacounda , Thies and Zinguinchor.

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2.16 Human resources: the Cadastral Survey Office and its agencies had 152 staff in 2004. This is far from the level required (300 staff), more so given their advanced age (more than half above 50) and the heavy concentration in Dakar. Indeed, taking the staffing needs into account, the Office has only 25 Category A staff against a need of 70; Category B staff number 48 compared to a need of 156, while support staff account for 79, including 34 awaiting posting. The 25 Category A staff are distributed as follows: 16 cadastral inspectors (of which 10 assigned to Dakar), 5 surveyors (2 in Dakar), 3 photogrammetry and cartographic engineers (all in Dakar) and one (1) inspector of physical development (Dakar) – representing a 66% concentration of management level staff in Dakar. The 48 Category B (mid-management) staff include 31 senior surveying technicians (17 in Dakar), 2 inspectors of physical development, 13 senior photogrammetry and cartography technicians (11 in Dakar) and two archivists. The Fatick and Matam Cadastral Survey Agencies are headed by Category B officers even though they should come under the direction of a cadastral inspector. 2.17 To overcome the human resources difficulties and within the framework of its economic and financial program, the Government made provision for 15 000 recruitments over three years, including 150 to be assigned to the DGID. That quota would enable the DGID to overcome some of the constraints facing the cadastral survey, State property and land registration services, as well as the DVEF. In 2004, fifty (50) vacancies were created in the DGID and about thirty staff recruited. In addition to pursuing the Government’s recruitment plan, the DGID should resume the continuing education program if it is to successfully conduct the modernization of cadastral services. Furthermore, it should undertake to assign Category A staff to head regional cadastral survey agencies and take positive discrimination measures to enable the recruitment of more women into the DGID. 2.18 With regard to topographic equipment, the Cadastral Survey Office has only nine (9) electronic total stations for the eleven regions (practically amortized) and no GPS dish. The electronic total stations are essential cadastral hardware for parceling and plot boundary marking, and each comprises an optical unit, a tripod, a set of reflectors and support stands. The stations measure angles and distances to determine the coordinates of survey points. They are equipped with magnetic recording system which allow for direct data transfer to the computer with a view to automated design production. With regard to plan reproduction, the Cadastral Survey Office has only one plan tracer (HP 500) with which it produces computer-generated plans and prints the digitized plans on paper, and a computer-aided digitizing table that permits the transfer of the paper plan to the computer monitor using a system of coordinates. 2.19 In terms of computerization and digitization, the Cadastral Survey Office does not have a server, nor are the three software used (Arc View, MS 95 and AD Topo) part of the DGID’s computerization master plan, itself obsolete since it dates back to 1994. The Arc View software permits the graphic and literal database management of a GIS, at the same time ensuring their interface. MS 95 and AD Topo allow the use of the topographic data collected in the field (transfer of points, drawing of contour lines, calculation of cubature and calculation of areas). With regard to work stations, the Office has 47 PCs (half or which are amortized) and 47 UPS (37 in Dakar and 10 in the regions), 20 printers, including 3 at the Office and 17 in the regions (one printer per agency, except Mbour), and seven PC desks, all of which are in Dakar.

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2.20 Regarding financial resources, budgetary allocations (excluding salaries) to the Cadastral Survey Office have been low in the past three years (CFAF 16.7 million in 2002 to CFAF 19.7 million in 2003 and 2004, i.e. 6.5% of the DGID budget in 2002 and 5.6% in 2003 and 2004). As for vehicles for field work, the Office has seven (7) double-cabin 4 x 4 vehicles, all practically amortized, three of which service Dakar and the other four are assigned to the Thies, Diourbel, Kaolack and Tambacounda regions. Thus, six (6) regions currently have no vehicle with which to conduct field operations. 2.21 Given the above constraints, the DGID has made considerable efforts to strengthen the capacity of the Cadastral Survey Office especially by: (i) procuring photographs of Senegal’s 40 leading localities; (ii) putting the architecture of the Geographic Information System (GIS) in place; and (iii) providing local training for 12 cadastral staff on the preparation of cadastral plans, data entry into the GIS, information gathering and technical assistance. Thanks to the training, the transcription of aerial photographs into the database (commencement of the digitized map of the forty localities) was initiated. Moreover, the Office entered into partnership with the Dakar Municipality which put the equipment for conducting cadastral surveys in some areas of Dakar at its disposal. 2.22 The Directorate of Registration, State Property and Stamps (DEDT): this Directorate comprises the revenue recovery and centralization department, the department of State property, the department of computerization, documentation and archiving, and the department of management and general matters. The department of State property oversees State and national property-related issues. It processes the inventory and manages State property and lands, charges State property occupation fees, acquires and alienates moveable and immovable assets belonging to the State, other public bodies or establishments, monitors property operations conducted by the State and local governments, especially the communes. 2.23 Furthermore, the State property department serves as the Secretariat of the State Property Operations Control Commission (CCOD) and handles public utility expropriation procedures expropriation before the competent jurisdiction. The Commission used to meet once every nine months – a factor that contributed to the congestion of services and the increase in the number of pending dossiers. Since early 2004, the CCOD has been meeting monthly, at times even more frequently. For its part, the computerization, documentation and archiving department is responsible for preparing and maintaining the general State property table, the documentation, archiving and immovable assets files. The department is the correspondent of the DGID’s Computerization and Services Modernization Department. The registration and stamp revenue department, the State property department and the cadastral registration department at the fiscal services centers all make up the external departments of the DEDT. 2.24 Human and financial resources: as at December 2004, DEDT staffing stood at 147, below the expressed need of nearly 200. More than 60% of the staff are concentrated in Dakar (Dakar accounts for 25% of the country’s population and more than half of the State property and land dossiers). Financial resources are also limited and amounted to CFAF 18.8 million in 2002 and CFAF 22.8 million in 2003 and 2004 (i.e. 7.4% of the DGID budget in 2002 and 6.5% in 2003 and 2004. 2.25 The Directorate of Verification and Investigations (DVEF): among other activities, the DVEF checks the accounts of businesses and the fiscal status of taxable persons with regard to one or several tax categories, including property tax and land fees.

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2.26 The DVEF’s organization chart comprises central and external departments each under the authority of an inspector of tax and lands. The central departments include the account and personal fiscal status verification brigade, the studies and tax investigations brigade, the revenue recovery and centralization bureau, the computerization unit (set up recently and not yet operational), and the administration and finance unit. In terms of human resources and not counting the Director, the Directorate’s staffing is inadequate: 34, including 4 brigade managers all with the rank of principal inspector, 13 audit inspectors, 2 inquiry brigade controllers, 1 revenue controller, 2 tax officers at the investigations unit, 3 tax officers at the revenue unit, 1 tax officer at the litigations unit, 1 manager and 5 secretaries. At the financial level, the Directorate’s budgetary allocation is limited and practically similar to that of the Cadastral Survey Office from 2002 to 2004 (§ 2.20). The DVEF is also under-equipped, especially lacking PCs which are indispensable for undertaking its principal activity. Given its complementarity with the other structures, it was considered necessary to strengthen the Directorate within the context of modernization of the Cadastral Survey Office, State property and land registration departments. 2.27 The General Directorate of Tax and State Property (DGID): in order to administer and coordinate the tax system, the DGID relies on the General Tax Code (CGI) which is regulated by Edict 92-40 of 9 July 1992 (modified several times, the last modification being Edict 2004-12 of 06/02/2004). Senegal currently counts forty (40) taxes, nine (9) of which are directly linked with land and related activities especially land fees, land advert fees, tax on developed and undeveloped property, property value added tax and household waste collection tax. All the taxes combined accounted for only 1.4% of the total fiscal revenue in 2002, compared to the 3% goal set by the Government. According to the Senegalese authorities, the modernization of these activities should enable them to attain that objective in the near future. 2.28 Organization: apart from the three central directorates described in § 2.14, 2.25 and 2.28, the DGID has eighteen (18) regional tax services centers (centres de services fiscaux régionaux, CSFR) which also serve as cadastral agencies, seven (70 of which are located in the Dakar region and surrounding areas, two (2) in the Thies region and ten (10) in other regions (see the full list in § 2.15). Not counting the center in charge of major corporate bodies and the center for the liberal professions, the CSFRs generally comprise a cadastral survey inspectorate, one or several tax revenue offices including property tax, land fees, domestic waste collection tax, a formalities office, a private tax office and a vocational tax office. 2.29 The current tasks performed by various DGID departments stem from an obsolete land legislation based on manual operating procedures. The relationships between cadastral survey, State property and land registration activities are not clearly specified and are no longer in tune with modern fiscal administration. With a view to the complete digitization of cadastral survey activities and the dematerialization of property and land-related information, on the one hand, and the introduction and implementation of an Integrated Tax Management System (§ 2.30), on the other hand, there is need to set up a modern organizational structure that would make the best of the innovations resulting from this major modernization operation. For that to happen, a requisite fiscal administration study should be conducted, with an undertaking from the Senegalese authorities to implement the study conclusions and recommendations.

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2.30 Computer and financial resources: DGID’s current computerization plan dates back to 1994 and is therefore obsolete. Furthermore, the applications used are either lodged at the General Directorate or the Directorate of Automated Information Processing (DTAI) which is responsible for defining and implementing the IT policy of the Ministry of Economy and Finance. In that regard, the DTAI will be a member of this Project’s steering committee. In addition, the DGID Computerization and Services Modernization Department is under-equipped and faces computer hardware, network administration and messaging problems. Given these triple constraints and in view of Government’s plans to procure Standard Integrated Government Tax Administration System (SIGTAS) software with CIDA financing, there is need to conduct the DGID IT master plan study, the recommendations of which the Government should also undertake to implement. For their part, budgetary allocations increased from CFAF 255.8 million in 2002 to CFAF 350 million in 2003 and CFAF 352.5 million in 2004. The share of the central department in the said budget stood at 35.7% in 2002, 46.2% in 2003 and 45.8% in 2004. 2.31 The Directorate of Urban Development and Architecture is one of the four directorates of the Ministry of Urban Development and Physical Planning. Its activities concern the preparation and introduction of urban management tools, especially physical development plans; urban development plans; the compilation and management of urban databases; the implementation and monitoring of the property restructuring and regularization policy; and the promotion of Senegalese architecture and urban esthetics. As stated in § 2.13, it maintains functional relations with the Cadastral Survey Office. Provisions should be made under the new DGID IT master plan to systematize relations especially during the cadastral, State property and land registration modernization phase. In a subsequent phase, plans should also be made for an integrated information exchange system on cadastral survey, State property and land registration activities between the DGID, the Ministry of Urban Development and Physical Planning, other operators and users. 2.32 The Order of Surveyors: the Order was set up by Edict No. 2000-04 of 10 January 2004. Membership is open exclusively to chartered surveyors (about 60 nationwide, all men). The surveyor’s cadastral and land-related missions principally concern the parceling and delimitation of private property and well as property appraisal. As stated in § 2.14, the Director of the Cadastral Survey Office is the Government Commissioner to the Order of Surveyors and oversees compliance with the standing orders. He is also the legally recognized expert in matters pertaining to the physical delimitation of plots, since cadastral registration falls under his Department. Documents lodged with the Office are valid and constitute proof of plot delimitation and boundary marking. In that capacity, the State may request the chartered surveyor to treat a land-related issue subject to a posteriori control by the Cadastral Survey Office. Despite the promulgation of the Edict of 10 January 2000, the legal mechanism has still not been finalized (the publication of decrees and implementing orders, especially the standing orders and the code of professional responsibilities, is still pending). Steps should be taken to remedy the situation. With regard to training, the Government should apply a positive discrimination policy by orientating girls into surveying-related training courses with a view to their future integration into the profession. 2.33 Notaries public: these are public officers (about thirty, half of which are women, and two thirds operating in Dakar). They are organized into a Chamber of Notaries Public and are empowered to: receive deeds and contracts on which the parties seek or are required to authenticate such deeds by establishing the actual date; file such deeds; deliver the engrossments, authentic copies and abstracts thereof. Notaries provide the public service of

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proof and authenticity. They currently manage 40 000 dossiers and their activities are adversely affected by the delays in the title deed establishment procedure which can take four to five years. These delays not only jeopardize the security of deeds taken from their clients but also affect the volume of transaction by notaries, particularly with regard to access to housing loans since banks require the title deed to grant such loans. Indeed, before processing the bank loan dossier, the notary and the parties must be informed about the statement of mortgage on the deed concerned. Any loan backed by a title deed cannot be formalized without that information. Due to the delay in procedures, the land registration department is not always in a position to provide the required information.

Main Constraints Identified

2.34 Based on the analysis of texts governing the sectors reviewed, the process of establishing a title deed, various actors in the sector and a few actions initiated by Government, it would appear that the Cadastral Survey Office, the State property and land registration departments services face three major constraints, namely: (i) the obsolete texts; (ii) unfamiliarity with the actual status of lands; (iii) the acute lack of material, human and financial resources by Government agencies; and (iv) the unsuitability of the organization chart of the only State structure operating in the two sectors. 2.35 Obsolete texts: the obsolescence of the texts emanates from their origins (colonial and post-independence period) and the legal vacuum over the use of computerization as one of the operating procedures, especially in State property and land registration activities. That obsolescence is further demonstrated in the persistence of manual operating procedures which, in turn, stoke the legal insecurity. The Government has submitted a draft bill to the National Assembly to modernize land legislation and the operating procedures, as well as fill the legal vacuum on the use of IT resources in the State property and land registration departments. 2.36 Unfamiliarity with the actual status of lands: this is attributable to the complexity of the legal framework (national lands, unclassified lands, public land and private land) and, above all, the inadequate resources available to Government agencies operating in the cadastral survey and land registration sectors. Apart from the rare plots of land with title deed (a marginal percentage of the total) especially in urban areas, the Government is unable to determine the actual status of lands especially in the rural area, on account of insufficient material, human and financial resources. Consequently, since dossiers are not processed as they are opened, they pile up, opening the way to multiple allocations and unregulated occupation by persons who, in the face of bureaucracy, opt to put the services involved before a fait accompli. Due to these constraints, contributions from developed and undeveloped property represents only 1% of the fiscal revenue (for a taxpayer population of nearly 40 000). Furthermore, at the social plane, these constraints further exacerbate women’s vulnerability with regard to access to property due to persisting negative sociological factors. In that regard, there is a wide gap between women’s constitutionally recognized rights and discriminatory practices exercised in the name of custom, religion and marital authority. Information and sensitization actions should be conducted jointly by the DGID and the Senegal Women Lawyers Association for the just application of the relevant constitutional texts.

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2.37 Acute lack of resources by Government services operating in the cadastral survey, State property and land registration sectors: at the cadastral survey and State property level, there is practically no topographic and reprographic equipment, and very few computer equipment. This explains why such services resort to using manual operating procedures, and is partly the reason for the delay in producing title deeds, the legal insecurity, the difficult access to ownership and the wait-and-see attitude on the part of investors. In addition, the cadastral department suffers acute shortage of core staff (surveyors and senior surveying technicians) which should be offset through technical assistance and a voluntary policy to train people in these trades. The DVEF and the DGID also face constraints pertaining to IT hardware and training in new information technologies (network administration and messaging). It is necessary to strengthen the capacity of these structures and modernize their operating procedures. 2.38 The unsuitability of the DGID organization chart: the current tasks of DGID’s various departments were defined based on obsolete land legislation and manual operating procedures. With the prospect of full digitization of cadastral activities and dematerialization of land and related information, there is need to conduct a study on reforming Senegal’s fiscal administration (the authorities should sign a commitment to implement the conclusions and recommendations of the study). Furthermore, the IT master plan is obsolete. Two studies are planned: one on fiscal reform, the other on the IT master plan. The Government shall undertake to implement the recommendations from both studies. 2.39 The above constraints have several consequences, the most obvious being the paltry budgetary revenue from property and land taxes. In 2002, property and land receipts collected through nine (9) different fees and taxes1 accounted for only 1.4% of the total fiscal revenue, i.e. about 0.25% of the GDP. Contributions from developed and undeveloped property represented a mere 1% of the fiscal revenue for a taxpayer population of nearly 40 000. The extremely low level of contributions is revelatory of the fiscal distortions that are counterproductive to effective resources allocation to economic agents. Lessons from Bank’s Past Experience 2.40 This project is the Bank Group’s first ever to focus on cadastral, State land and related activities in Senegal’s urban area. Nonetheless, the Bank already has solid experience in institution building and budgetary support. With regard to institution building, the Bank financed two operations in the past, one of which has been completed while the other is ongoing. Indeed, the Bank in 1990 approved an institution building operation in the Ministry of Economy and Finance for UA 4.39 million. During the implementation phase, the project encountered a number of difficulties, especially: the frequent sanctions imposed on the country due to arrears, the non-compliance with Bank rules and procedures during the first three years of the project, the delay in replacing the technical assistance staff who left the project, the transformation of the offices modification component into a new building construction. For these reasons, the implementation timeframe was extended seven times and the project finally completed in 1999. These difficulties notwithstanding, the project output was satisfactory overall. Extensive training was dispensed on planning and public finances, even as working conditions in the Ministry of Economy and Planning improved. These

1 Property tax on developed and undeveloped property, land revenue, household waste collection tax, property fees and advertisements, property value added tax, other property fees and surcharges on undeveloped or under-developed property.

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results would have been more outstanding had the executing agency been more proactive in ensuring a more efficient use of technical assistance. 2.41 The second institutional support (ongoing) for which a UA 1.55 million grant was awarded, is complementary to the project under consideration and concerns capacity building in the Directorate of Projections and Statistics and the PRSP Implementation Monitoring Unit. It was approved in December 2002 and entered into force in February 2003. The launching mission was conducted in August 2003; activities started up in June 2004 and implementation is going smoothly. 2.42 In terms of budgetary support, the Tariff Reform and Competitiveness Promotion Support Program for UA 20 million was approved in December 2000. A second reform support program on private sector adjustment in the amount of UA 24 million was approved in December 2003. The first tranche was disbursed in August 2004 and the implementation is running smoothly. Two lessons were drawn from the Tariff Reform Program: firstly, when a program is well designed and is based on realistic measures and a country’s actual installed capacity, and when such measures are backed by real political will, positive results are obtained. The second lesson concerns the difficulty of implementing measures of regional import (e.g. the community investment code) due to national self-interests, worsened by poor communication between community authorities and governments, on the one hand, and between governments and economic operators, on the other. 2.43 Drawing from the experience from the institution building and budgetary support operations, this project incorporated the following elements into its design: (i) with regard to project implementation, the preparation of concise TOR of the project unit manager and reconfirmation in the performance contract of the fact that financing the technical assistance is subject to the Government’s formal undertaking to appoint counterparts on the dates jointly agreed to; (ii) in terms of monitoring, the involvement of the Senegal Regional Office and the need to take into account the indicators contained in Table 5.4 in evaluating the performance of the project manager. 2.44 In the light of the constraints diagnosed and lessons from similar experiences, there is an urgent need to modernize cadastral survey, State property and land registration activities which are an integral part of the reform mechanisms that the Government is striving to implement to ensure public finance viability and promote good governance, with a view to creating an enabling environment for a modern and competitive private sector. The overriding challenge is that as reflected in the PRSP, private initiative is one of Government priorities in its desire to promote wealth creation, without which it would be difficult to significantly reduce poverty in the country. III. POVERTY REDUCTION STRATEGY AND THE NATIONAL GOOD

GOVERNANCE STRATEGY 3.1 The purpose of this chapter is first to briefly present the country’s poverty reduction strategy, itself based on a national good governance program to which the cadastral survey modernization project is anchored. Thereafter, it highlights the commitments of other development partners to the program in terms of financing.

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Poverty Reduction Strategy 3.3 The poverty reduction strategy adopted by the Senegalese authorities in March 2002 in the wake of a broad-based consultation within the administration, with the civil society, the private sector and the development partners aimed principally to reduce poverty by 50% by 2015 by doubling per capita income through strong, balance and equitably shared growth, sustained by a sanitized and transparent environment. The intermediate objective is to reduce poverty by 15% towards 2005. To attain these objectives, it is necessary to put in place mechanisms allowing for the improvement of public finances, the promotion of transparency in public affairs management, the modernization of government, corruption control and the rehabilitation of the judiciary. That mechanism is contained in the National Good Governance Program which complements the implementation of the PRSP as described in paragraphs 3.3 and 3.4. National Good Governance Program (NGGP) 3.3 The poverty reduction strategy was guided by a number of themes identified within the framework of preparatory work on the Tenth Economic and Social Development Plan (2002-2007), including the promotion of good governance and the strengthening of the rule of law. This thrust resulted in the preparation and adoption in June 2002 of the National Good Governance Program (NGGP) which aimed at building efficient institutions capable of rising to the challenges of development. The NGGP complements the implementation of the PRSP by redefining the roles of various institutions, restructuring them and exploring ways and means of meeting the expectations of the population with regard to public services and well being. To attain these objectives, six (6) components were prepared, namely: public service quality improvement; economic governance; local governance; judicial governance; improving the quality of parliamentary deliberations; and developing New Information and Communication Technologies. 3.4 Regarding economic governance, emphasis was put, among other things, on effective public resources management and capacity building of public departments, especially the financial authorities, including the General Directorate of Tax and State Property. To that end and following the CFAA/CPAR diagnosis conducted in 2002/2003 by the World Bank, the ADB and the Government, the restructuring of DGID departments and modernization of cadastral survey were included in the CFAA action plan. This process is an integral part of the implementation of the NGGP and contributes to poverty reduction in Senegal. Indeed, by modernizing cadastral, State property and land registration activities, securing and guaranteeing access to property, more investors are attracted who, in turn, create jobs - thanks to which the people’s living standard improves. Furthermore, fiscal revenue increases and more resources are channeled to poverty reduction program at the central and local government level. The cadastral survey modernization project seeks to attain that objective. Hence, the development partners have shown their readiness to offer their support within the framework of the said program (see paragraphs 3.5 to 3.9 below).

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NGGP Financing 3.5 Pending the organization of a round table on NGGP financing scheduled for the first semester of 2005 under the auspices of the UNDP, the Government has already forwarded requests for financing to the major development partners. Hence, the UNDP will fund the political and local governance component as well as the cross-cutting capacity building component. 3.6 The World Bank will participate in the economic governance component by financing the Private Investment Promotion Project (PIPP) to the tune of USD 45 million, and the feasibility study on the DGID modernization for USD 38 000. It is ready to support Government’s Judiciary Sector Program (under the judicial governance component). 3.7 The European Union will also back Government’s economic governance component for nearly EUR 33.5 million, the components of which include judicial governance, non-governmental actors, the NGGP technical coordination committee and modernization of cadastral survey. With regard to the latter activity, the European Union plans to allocate EUR 7.33 million (UA 4.79 million) for operations to complement those financed by the ADB, particularly part of technical assistance, preparation of cartography on the rest of the national territory, conducting of a national cadastral survey especially in rural areas, and procurement of the rest of computer hardware, topographic and reprographic equipment. 3.8 CIDA will also provide assistance for the modernization of cadastral survey within the framework of targeted budgetary resources to the tune of CAD 5.2 million. These resources will be used in setting up the Standard Integrated Government Tax Administration System (SIGTAS) at the DGID. The USAID is currently supporting the promotion of national and local private initiative, as well as political governance. It should be mentioned that other donors (e.g. French Cooperation, Belgium and Japan) have already undertaken to contribute to the financing of the NGGP. 3.9 With specific reference to the budgetary and financial reforms incorporated into the economic governance component, a project to coordinate the implementation of the reforms was set up with France, Canadian and World Bank financing. In spite of such support, the needs identified in the six NGGP components are far from covered, especially in economic governance. For that reason, the ADF opted to support the economic governance component whose points of application concern the modernization of cadastral survey in the urban area (see Chapter IV).

3.10 Indeed, the project lies within the framework of a global approach associating the development partners especially the IMF, the World Bank, the European Union and Canada which, together with the Bank, agreed on the need to support Government structures involved in cadastral survey, State property and land registration activities so as to improve internally-generated resources mobilization and the business climate, with a view to sustainable growth that would have a considerable impact on poverty reduction.

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IV. THE PROJECT

4.1 Project Design and Rationale

4.1.1 This project was designed to support Government efforts to modernize cadastral survey, State property and land registration activities with a view to improving internally-generated resources mobilization and the business climate. It was prepared on the basis of conclusions of the study conducted in July 2004 by an international consulting firm at ADB’s request on the modernization of cadastral survey, and drew considerably from the lessons of similar operations implemented in Senegal. It was appraised using the participatory approach, thanks to which working sessions were held with the authorities, especially the Ministry of Economy and Finance, the Ministry of Justice, the Ministry of Urban Development and Physical Planning, governmental and non-governmental players (Order of Surveyors, notaries public and the Office of Topographic Studies) involved in cadastral survey, State property and land registration activities. Meetings were also held with the employers association, the association of professionals in banking and financial establishments, the Dakar Municipality, civil society and other development partners. The project management structure was discussed with the authorities and other partners particularly with regard to its institutional linkages, structure, organization chart and the composition of the steering committee. Lastly, provision has been made to conduct a mid-term review which will provide the opportunity for taking stock of the project as implemented in the first twenty localities.

4.1.2 The project is in keeping with a global approach associating the development

partners especially the IMF, the World Bank, the European Union and Canada which, together with the Bank, agreed on the need to support Government structures involved in cadastral survey, State property and land registration activities so as to improve internally-generated resources mobilization and the business climate, with a view to sustainable growth that would have a considerable impact on poverty reduction.

4.2 Project Zones and Beneficiaries

4.2.1 The project will cover forty (40) urban areas out of Senegal’s one hundred and fifty five (155) localities, organized into eleven (11) regions (see Annex 1 of this report). The forty urban areas concerned will be provided with local cadastral survey plans based on the geographic information system. Four reasons justify the selection of these urban areas: firstly, their population, and by extension the importance of their cadastral survey, land and tax potential. Indeed, out of the 800 000 plots inventorized in these localities, only 40 000 property possess title deeds. The second reason is the existence of forty (40) aerial pictures which will facilitate preparation by the ADF of maps by adapting the aerial pictures to the actual situation on the ground and conducting a monographic study on the reference sites covering these zones. The third reason is related to the fact that other localities, especially rural, should be covered by the Government and the European Union, within the framework of preparation of the land law. Lastly, as the fourth reason, the cadastral survey modernization is one of the key budgetary reform measures emanating from the CFAA/CPAR diagnosis. 4.2.2 The project’s direct beneficiaries will be 70% of Senegal’s population who live in the forty urban localities (see Annex 12), the local governments in the forty urban localities, the local departments, the regional cadastral survey offices, the Central Cadastral Survey Office, the Directorate of Registration, State Property and Stamps (DEDT) and the Project

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Implementation Unit. Moreover, the Directorate of Verification and Tax Investigations (DVEF) and the DGID computing center will also benefit from the Bank’s support.

4.3 Strategic Context

4.3.1 The project is in keeping with the National Good Governance Program (NGGP) which is a pillar of the poverty reduction strategy. One of the objectives of the strategy is to create wealth by establishing an enabling environment for private sector development and improvement of internally-generated resources mobilization. The measures contained in the NGGP’s economic governance component are meant to attain that objective by strengthening the capacity of cadastral survey, State property and land registration structures, among other things. Indeed, by contributing to modernizing cadastral survey, State property and land registration activities, the Cadastral Survey Office could clear the 10 000 dossiers pending and treat 12 000 dossiers yearly, compared to the current 3000. This would shorten the timeframe for acquiring title deeds and secure access to property, especially for women. Private investors will find Senegal even more attractive, with the attendant generation of new employment opportunities and improvement of the private sector’s contribution to the GDP. Moreover, this modernization will share in raising the contribution of property tax to fiscal revenue (property tax output). Lastly, the central and local governments will have more resources at their disposal to implement poverty reduction programs and improve the population’s well being.

4.3.2 The project is in accordance with the Bank Group’s good governance promotion and public resources management improvement policy. The components retained align perfectly with the Bank’s public sector operating strategy aimed notably at acting on the general conditions necessary for reducing poverty by improving internally-generated resources mobilization and the business environment.

4.4 Project Goal and Objectives

4.4.1 The sector aim of the project is to contribute to good governance by improving internally-generated resources mobilization and the business environment, with a view to producing sustainable growth that would have a significant impact on poverty reduction. 4.4.2 Specifically, the project aims at contributing to the digitization of cadastral survey in order to better control land use and improve access to property and enhance fiscal revenue. 4.5 Project Description 4.5.1 The project comprises the following three components:

i) Strengthening of cadastral survey; ii) Strengthening of State property, verification and tax investigations, fiscal

system administration and coordination; ii) Project management.

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4.5.2 The project is expected to produce the following outputs :

i) Adoption of the new property law;

ii) Implementation of the study on fiscal administration in Senegal which will lead to a new organization chart based on digitized cadastral survey, State property and land registration activities;

iii) Update of the DGID computerization master plan, better understanding of

the contribution of the said sectors to fiscal revenue, better revenue projection through a simulation model;

iv) Implementation of a monographic study for the selection of reference

points and production of maps for the adaptation of the 40 aerial pictures to the reality on the ground;

v) Implementation of the study on the computerization of Dakar land

registration and surrounding areas, making possible its digitization and the digitization of the archiving system;

vi) Set up a national cadastral survey plan based on the cadastral survey plans

of the 40 project localities, obtained from the monographic and cartographic studies following the adaptation of the aerial pictures to the reality on the ground;

vii) Compile a property and fiscal database for each of the 40 project localities,

linked to the geographic information system; viii) Provide computer hardware, topographic and reprographic equipment to

the Cadastral Survey Office, and computer hardware to the State property and land registration departments, the Directorate of Tax Investigations and the DGID.

4.5.3 The project description by component is as follows:

Component I: Strengthening of Cadastral Survey

4.5.3.1 The aim of the project is to contribute to modernizing cadastral survey nationwide in view of the latter’s strong technical contribution to the State property system and local property tax management. In coordination with other partners, the project will strengthen the cadastral survey capacity by supplying equipment necessary for the extensive use of information technology and technical assistance. 4.5.3.2 Equipment: in order to overcome the constraint relating to the obsolescence and shortage of computer hardware, topographic and reprographic equipment (the underlying causes behind the delay in establishing title deeds), plans have been made to provide the Cadastral Survey Office with computer hardware, topographic and reprographic equipment. Moreover, to overcome the transport difficulties that prevent the conduct of cadastral survey operations in the field, the Government has undertaken to finance the procurement of twelve (12) vehicles for the Cadastral Survey Office within the context of this project.

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4.5.3.3 Technical assistance: to overcome the current shortage of surveyors and senior surveying technicians, the project will provide the Cadastral Survey Office with three (3) surveyors and six (6) senior surveying technicians for thirty months in the form of technical assistance. The technical assistance staff will be replaced by national counterparts (the Government has undertaken to show proof of designating the counterparts not later than 31 July 2007). 4.5.3.4 Consultants: to permit the implementation of the monographic study to select reference points and prepare maps through the adaptation of aerial photographs of the forty (40) localities to the reality on the ground, the services of two consulting firms will be used. The purpose of the monographic study will be to identify through well-defined characteristics various types of sites existing in the 40 localities, establish a clear identification under a given category and the related reference values to be assigned. For their part, the registration maps will involve the update and registration of digitized maps obtained from aerial pictures, through geodesic and topographic work (especially network densification, completion, plot formation, compilation of land documents and field-related works). Component II: Strengthening of State Property Activities, Verification and Tax Investigations, Fiscal System Administration and Coordination 4.5.3.5 The project will support capacity building in: (i) the Directorate of Registration, State Property and Stamps; (ii) the Directorate of Verification and Tax Investigations; and (iii) the General Directorate of Tax and State Property. In that regard, the following activities are planned: 4.5.3.6 Computer hardware: in order to overcome the computer hardware shortage, provision has been made to provide the Directorate of Registration, State Property and Stamps (DEDT), the Directorate of Verification and Tax Investigations (DVEF), the General Directorate of Tax and State Property and the Computerization and Services Modernization Bureau with computer hardware, reprographic equipment and computer consumables. 4.5.3.7 Consultants: to protect existing title deeds, simplify procedures, clear the dossiers pending, update registers and reorganize existing files, the project will, on behalf of the DEDT, finance the services of a consulting firm to conduct studies on the computerization of cadastral survey and land registration activities as well as compile a database. Furthermore, the following services will be procured: (i) a consultant to conduct a study on the reform of Senegalese fiscal administration, the conclusions and recommendations of which the Government has undertaken to implement; (ii) a consultant to prepare a new DGID computerization master plan, the conclusions and recommendations of which the Government has undertaken to implement; and (iii) a consultant to conduct a study on the contribution of the sectors under review to fiscal revenue, and preparation of a fiscal simulation model. 4.5.3.8 Training: to solve the network administration and messaging problem, the project will, on behalf of the Computerization and Services Modernization Bureau, finance training for three persons on network administration and for another three on the MS Exchange messaging system.

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4.5.3.9 Information Campaigns on Cadastral Survey: each year, the project will finance the organization and hosting of two (2) doors open days by the DGID and the Senegal Women Lawyers Association to better inform users on the mission, activities and working procedures of cadastral survey, as well as women’s rights in terms of access to property. These information campaigns are all the more important in the cadastral survey modernization process since the current image of the cadastral sector is far from glittering among users, especially private sector actors who consider the procedures for obtaining title deeds as nebulous and non-transparent.

Component III: Project Management 4.5.3.10 The project will be implemented by the Project Implementation Unit (PIU) set up within the DGID of the Ministry of Economy and Finance. It will comprise: (i) a full-time project manager whose profile, qualifications and experience, especially with regard to knowledge of cadastral, State property, land and fiscal administration, the ADF would have considered acceptable. The project manager will be recruited for a one-year renewable term, depending on the results of the performance contract signed between the consultant and the Donee, the terms of reference of which will be submitted to the ADF for prior approval; (ii) an accountant recruited by the Donee, whose profile and qualifications (especially in accounting, financial and procurement procedures) the ADF would have considered acceptable; and (iii) a secretary, a driver and a messenger, recruited by the Donee. 4.5.3.11 Specifically, the PIU will be charged with preparing bidding documents, issuing bid invitations, awarding contracts for the procurement of goods and the use of consultants within the project framework, supervising the installation of computer hardware in liaison with the DTAI, the DGID Computerization and Services Modernization Bureau and other specialized units of the beneficiary departments, and coordinating training programs. Furthermore, the PIU will keep the project accounts, prepare the draft agenda for and summary records on the Steering Committee meetings, draft project annual and quarterly budgets validated by the Steering Committee, quarterly and annual reports on the project status, as well as the completion reports that it will subsequently forward to the ADF. It will serve as the link between the ADF and the Government. 4.5.3.12 Furthermore, in order to provide effective guidance to and coordination of project activities, a Steering Committee will be set up by a decree of the Ministry of Economy and Finance. Members of the Committee will be proposed by their departments of origin. The Committee will be headed by the General Director of Tax and State Property, and will comprise a representative of each of the two key beneficiary directorates (cadastral survey, lands), a representative of the Chamber of Notaries Public, a representative of the Order of Surveyors, a representative of locally elected officials, a representative of the Ministry of Urban Development and Physical Planning, a representative of the employers association, a representative of the DTAI, a representative of the DCEF and a representative of the Directorate of Local Governments. The Committee will meet once every quarter and the PIU will serve as its secretariat. 4.5.3.13 Equipment: the project will provide the PIU with three PCs, three printers, one photocopier, office furniture and equipment. Provision has also been made to procure a liaison vehicle with government counterpart financing.

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4.5.3.14 Consultants: to enable the successful implementation of activities, the project will finance the preparation of administrative, accounting and financial procedures manual by using the services of a short-term consultant (1 man/month). The manual will be submitted to the Bank for information not later than six months following entry into force of the grant memorandum of understanding. Furthermore, the project will finance the implementation of three annual project account audits, using the services of an auditing firm. 4.5.3.15 The project will cover the cost of allowances to five staff (one quarter of government contribution per staff), the running of the Unit (i.e. fuel and vehicle maintenance, insurance fees, supplies, various management charges and auditing). 4.6 Project Cost 4.6.1 The project is estimated to cost UA 2.91 million, excluding customs duty. The foreign exchange portion represents 83.5% of the total cost (UA 2.43 million), while the local currency cost represents 16.5% of the total package (i.e. UA 0.48 million). 4.6.2 The costing is based on recent unit prices on similar projects and Senegalese market cost surveys. Costs include a 5% and 3% provision for physical contingencies and price escalation, respectively. Tables 4.1 and 4.2 below present the cost summary:

Table 4.1: COST ESTIMATE BY COMPONENT

In CFAF Million In UA Million % COMPONENT For. Exc. LC Total For. Exc. LC Total Component

Component 1 : CADASTRAL SURVEY 1 484.4 216.00 1 700.4 1.96 0.29 2.24 83 Component 2 : STATE PROPERTY 162.70 0.00 162.70 0.21 0.00 0.21 8 Component 3 : Project Management 37.35 153.66 191.01 0.05 0.20 0.25 9 …including Audit 14.70 6.30 21.00 0.02 0.01 0.03 Total base cost 1 684.45 369.66 2 054.11 2.22 0.41 2.63 Physical contingencies 107.03 49.91 156.93 0.21 0.07 0.18 Total project cost 1 791.47 419.57 2 211.04 2.43 0.48 2.91

Table 4.2 : COST ESTIMATE BY EXPENDITURE CATEGORY

Expenditure Category In CFAF Million In UA Million

For. Exc. LC Total For. Exc. LC Total ADF Govt.

A. Goods 877.71 275.65 1 153.36 1.16 0.36 1.52 1.19 0.32

B. Services 805.00 6.90 811.90 1.06 0.01 1.07 1.07 0.00

C. Operation 1.74 87.11 88.85 0.00 0.11 0.12 0.03 0.09

Total base cost 1 684.45 369.66 2 054.111 2.22 0.41 2.63 2.22 0.41

Physical contingencies 107.03 49.91 156.93 0.21 0.07 0.28 0.28

Total project cost 1 791.47 419.57 2 211.04 2.43 0.48 2.91 2.50 0.41

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4.7 Sources of Financing and Expenditure Schedule 4.7.1 The ADF grant and the Government of Senegal will jointly finance the project as indicated in Table 4.3 below. The ADF contribution amounts to UA 2.5 million, that is to say nearly 86% of total project cost. The financing will cover the whole (100%) of the foreign exchange cost and part of the local currency cost as shown in the table below:

Table 4.3 Sources of Financing (in UA million) Source Foreign

Exchange LC TOTAL %

ADF Grant 2.43 0.07 2.50 86.00

Government 0.0 0.41 0.41 14.00

TOTAL 2.43 0.48 2.91 100.00

4.7.2 ADF participation in the local currency cost will fund part payment (one quarter) of the allowance of members of the PIU, in particular the Project Manager, the head of administration and finance, the secretary, the driver and the messenger. It will also finance the campaigns to sensitize the public and cadastral survey/land users, local training of six (6) experts of the DGID center, procurement of consumables, fuel and insurance for the liaison vehicle, and basic office furniture for the project. The local currency contribution is justified by the type of goods and services slated for procurement, the socio-economic context and efforts made by the Donee to participate in funding the project. 4.7.3 The Government contribution of UA 0.41 million will fund the procurement of vehicles, three quarters of the PIU expenditure and miscellaneous expenses. 4.7.4 Tables 4.4 and 4.5 show the expenditure schedule by component and source of financing.

Table 4.4: EXPENDITURE SCHEDULE BY COMPONENT

CFAF Million UA Million COMPONENT 2005 2006 2007 Total 2005 2006 2007 Total

Component 1:Cadastral Survey 204.05 697.16 799.19 1700.40 0.27 0.92 1.05 2.24

Component 2 : State Property 19.52 66.71 76.47 162.70 0.03 0.09 0.10 0.22

Component 3 : Project Management 22.92 78.31 89.78 191.01 0.03 0.10 0.12 0.22

…including Audit 2.52 8.61 9.87 21.00 0.00 0.01 0.01 0.03

Total base cost 246.49 842.19 965.43 2054.11 0.33 1.11 1.27 2.71

Physical contingencies (5%) 12.32 42.11 48.27 102.71 0.01 0.06 0.06 0.13

Price escalation (3%) 25.27 28.96 54.23 0.00 0.03 0.04 0.07

Total project cost 258.82 909.56 1042.67 2211.05 0.34 1.20 1.37 2.91

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Table 4.5: EXPENDITURE SCHEDULE BY SOURCE OF FINANCING

In UA Million

Source 2005 2006 2007 TOTAL %

ADF Grant 0.29 1.03 1.18 2.50 86

Government 0.05 0.17 0.19 0.41 14

TOTAL 0.34 1.20 1.37 2.91 100

V. IMPLEMENTATION 5.1 Executing Agency The Republic of Senegal is the Donee. A Project Implementation Unit will be set up within the DGID of the Ministry of Economy and Finance, and its capacity strengthened through the procurement of diverse equipment. 5.2 Institutional Arrangements 5.2.1 The PIU will comprise a Project Manager, an accountant, a secretary, a driver and a messenger. Over the project duration, a quarter of their allowances will be covered by the ADF and three quarters by the Government. The curriculum vitae of the Project Manager and the accountant shall be submitted to the ADF for lapse-of-time approval. The Project Manager should be highly experienced and shall sign a performance contract with the Donee. The terms and conditions of the contract will be submitted to the ADF for prior approval. S/he will exercise oversight over the procurement of computer hardware in liaison with the DTAI, the Computerization and Services Improvement Bureau and the specialized services of the beneficiary departments. S/he will coordinate the project implementation and, among other things, ensure appropriate coordination with the actions of other donors within the framework of the NGGP and the Budgetary and Financial Reforms Coordination Project. Under the oversight of the Project Manager, the accountant will ensure compliance with the administrative, financial and accounting procedures in connection with the preparation of TOR, bidding documents and contracts for the procurement of goods and services. S/he will keep the project accounts. The Government shall allocate appropriate premises to the PIU. 5.2.2 Specifically, the PIU will be charged with preparing the bidding documents, inviting bids, awarding contracts for the procurement of goods and the use of consultants for the project, supervising the installation of computer hardware in liaison with the DTAI, the DGID Computerization and Services Modernization Bureau and other specialized services of the beneficiary departments, and coordinating training. The PIU will also ensure the preparation and transmission of quarterly reports, the completion report and other project documents to the ADF. It will serve as a link between the ADF and the Government. 5.2.3 Furthermore, a Steering Committee will supervise the activities of the PIU (which will serve as the SC’s secretariat). The Committee will be headed by the DGID Managing Director and comprise a representative of each of the two main beneficiary directorates (cadastral survey, State property), a representative of the Chamber of Notaries Public, a representative of the Order of Surveyors, a representative of locally elected officials, a

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representative of the Ministry of Urban Development and Physical Planning, a representative of the DTAI, a representative of the employers association, a representative of the DCEF and a representative of the Directorate of Local Governments. The Committee will coordinate the project and meet once every quarter. In that regard, it will review and adopt the annual budgets and activity plans as well as approve the TOR of studies and training, the work program of consultants, bid analysis reports and quarterly progress reports prior to their forwarding to the ADF. 5.3 Implementation Schedule Entry into force of the grant memorandum of understanding is scheduled for June 2005. The implementation phase will span 30 months with effect from the date of Board approval as summarized in Table 5.1 below. For implementation monitoring purposes, the Bank will conduct regular supervision missions and a mid-term review mission in line with existing provisions. The latter mission scheduled for December 2006 (see Table 5.1) will provide an opportunity to take stock of project implementation on the first twenty (out of the forty) localities covered by the project. Lessons from the review will be taken into account during project implementation in the remaining twenty localities. Furthermore, monitoring will be facilitated by the existence the Bank’s regional office in Senegal.

Table 5.1: Estimated Project Implementation Schedule

Activities Responsibility Date Board approval ADF 04/2005 Signing of the grant memorandum of understanding

ADF/GVT 06/2005

Establishment of the PIU ADF/GVT/DGID 07/2005 Start-up of activities ADF/GVT/DGID 08/2005 Preparation of the procedures manual GVT/ADF 09/2005 Start of procurement of goods and services ADF/DGID 10/2005 DGID organizational studies ADF/DGID 10/2005 DGID master plan ADF/DGID 10/2005 First audit GVT/DGID 01/2006 Implementation supervision ADF/GVT/DGID 02/2006 Mid-term review ADF/GVT/DGID 12/2006 Second audit GVT/DGID 01/2007 Implementation supervision ADF/GVT/DGID 06/2007 Last audit GVT/DGID 01/2008 Project completion/GVT PCR ADF/DGID 03/2008 ADF PCR mission ADF 06/2008

5.4 Procurement Arrangements 5.4.1 The procurement arrangements are summarized in Table 5.2 below. All goods and services procured with ADF financing shall comply with the ADF rules of procedure for the procurement of goods and services or the rules of procedure for the use of consultants, using the appropriate standard Bank documents.

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Table 5.2: Procurement Arrangements

Procurement Method ICB LCB SL OTHERS

TOTAL

Amount in UA thousand Goods Computer hardware

545.31[545.31] 21.8[(21.80] 567.11[567.11]

Reprographic equipment

193.07[193.07] 193.07[193.07]

Topographic equipment

394.17[394.17] 394.17[394.17]

Vehicles 335.78[0.00] 335.78[0.00] Services Technical assistance

413.3[413.3] 413.3[413.3]

Studies 623.3[623.3] 623.3[623.3] Procedures manual 2.64[2.64] 2.64[2.64] Audit 27.71[27.7]) 27.71[27.71] Training 3.58[3.58] 3.58[3.58] Sensitization campaign

11.88[11.88] 11.88[11.88]

Operations 79.21[59.81] 79.21[59.81] Allowances 87.07[28.34] 87.07[28.34] Physical contingencies

180.0[180.0]

TOTAL 939.43[939.43] 1070[1070] 728.77[314.87] 2918.0[2504.0] Legend: International Competitive Bidding (ICB); Local Competitive Bidding (LCB); Short List (SL) “SL” applies solely to the use of consultants. “Others” concerns Limited International Bidding (LIB), international or local shopping, direct negotiation or works on force account. [ ] Amounts in parenthesis denote ADF contribution Goods 5.4.2 Goods financed by the project include various computer hardware, topographic and reprographic equipment, data processing software, servers, office equipment, office furniture and electrical equipment. In accordance with ADF rules, International Competitive Bidding (ICB) procedure will be used in the procurement of computer hardware, topographic and reprographic equipment. The National Shopping (NS) procedure will be used in the procurement of office equipment, electrical equipment, servers, software and computer hardware purchased during the project’s first year. The same procedure will be used for the procurement of small quantities of materials (fuel, office consumables, etc.) valued below UA 20 000.

Services

5.4.3 Three (3) surveyors and six (6) surveying technicians throughout the project duration (30 months) will be procured on the basis of a short list. The short listing procedure will also be used in procuring the services of: an international consultant to prepare the DGID computerization master plan, three international consultants to conduct three (3) studies on the reform of the DGID structures, the contribution of the sectors concerned to fiscal revenue and a fiscal simulation model, an international consulting firm to digitize land registration and compile a database, and a consultant to prepare the administrative, financial and

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accounting procedures manual for project management. The preparation of registration maps and the monographic study on reference points will equally be procured on the basis of a short list. The TOR of these studies are annexed to this report. 5.4.4 In addition, the project will finance the training of six (6) staff from the DGID Computing Center (3 in network administration and 3 in the MS Exchange messaging system). The training centers will be selected on the basis of a short list. Two sensitization campaigns will be organized and hosted yearly throughout the project duration. Given the specificity of that activity (linked directly with the DGID), it will be implemented on force account. Operation 5.4.5 The expenditure covered by the project includes the procurement of office supplies and consumables (through the national shopping procedure). Other operating expenditure chapters comprise computer maintenance expenses, other maintenance expenses and general charges, all of which will be subject to the national shopping procedure. Allowances and per diem, for their part, will be directly paid by the PIU to those concerned and the related justifying documents presented to the ADF when filing the request for the replenishment of the project imprest account. Audit 5.4.6 Services for the three project audit activities will be procured on the basis of a short list of auditing firms. In accordance with the project implementation schedule, these audits will be conducted in January 2006, January 2007 and January 2008, respectively. On each occasion, a copy of the audit will be forwarded to the ADF and the General Inspectorate of Finance. Review Procedures 5.4.7 The following documents will be submitted to the Bank for review and approval prior to publication: (i) Specific Procurement Notices; (ii) bidding documents or letters of invitation to consultants; (iii) bid analysis reports from firms or suppliers or proposals from consultants, including contract award recommendations; (iv) draft contracts if those contained in the bidding documents had been modified; (v) the TOR, professional and academic reference of consultants, and contracting conditions should be submitted to the ADF for approval prior to negotiations. 5.5 Disbursement Arrangements 5.5.1 The grant is scheduled for disbursement over a period not exceeding thirty (30) months, counting from the first disbursement. The operating expenses will be disbursed through the special account method. In that regard, the project will open a special account in a commercial bank acceptable to the Fund into which the grant resources will be paid. The opening of the special account shall be a condition precedent to the disbursement of the grant. The special account will receive an initial payment based on a quarterly activity program approved beforehand by the Fund. The account will be replenished from time to time by request and after justification for the use of at least 50% of the previous transfer. The request

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for replenishment will be accompanied by the activity program for the subsequent quarter and justifying documents on expenditure committed.

5.5.2 Disbursements on equipment and supply contracts will be paid directly to the suppliers on the basis of the contracts signed. However, payment below UA 20 000 could be made from the special account, with the Fund’s prior consent. After verification of the conformity of the project suppliers and service providers with their respective terms of reference, the PIU will prepare disbursement requests and submit them to the Steering Committee for onward transmission to the Fund. For its part, the national counterpart will represent the procurement of 13 vehicles, including 12 for cadastral survey and one for the PIU, salaries of the PIU staff and provision of the Unit with suitable premises. 5.6 Monitoring and Evaluation 5.6.1 The PIU will be responsible for project monitoring and evaluation. The beneficiaries and the Fund will be kept informed through the regular submission (thirty days following the end of each quarter) of quarterly reports prepared by the PIU in the format outlined by the Fund. Such reports should take stock of the progress made vis-à-vis the project matrix indicators. The reports (including minutes of various meetings of the Steering Committee) will, for the quarter concerned, cover aspects related to project implementation, including the status, expenditure, working program, analysis of gaps recorded, likely problems and solutions proposed. They will also provide insight into the activities for the subsequent quarter. Furthermore, the PIU will prepare a Project Completion Report (PCR) in March 2008, i.e. three months following the completion of the project. For its part, the Fund will monitor the project through the start-up mission scheduled for July 2005, the annual supervision missions (February 2006 and June 2007) and a mid-term review (December 2006). 5.6.2 Monitoring and evaluation will also be conducted through the implementation of the activities below, based on frequencies and dates agreed with the Donee. These factors will be taken into account during the annual review of the performance contract signed between the Project Manager and the Donee.

Table 5.3: Types of Activities to be Conducted

Activities Frequency Responsibility Procedures manual September 2005 Consultant/PIU Recruitment of technical assistance November 2005 PIU DGID organizational studies November 2005 Consultant/PIU DGID computerization master plan November 2005 Consultant/PIU Sensitization workshop on cadastral survey Annual PIU/DGID Project audit and performance of the Project Manager

Annual Consultant/ADF/Govt.

Project status report Quarterly/annual PIU First project audit January 2006 Consultant/PIU Implementation of three studies February 2006 Consultants/PIU Supervision Half-yearly ADF Equipment procurement April 2006 PIU/Beneficiaries Mid-term review December 2006 ADF/Govt. Government project completion report March 2008 PIU/Govt.

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5.6.3 Furthermore, the evaluation of the Project Manager’s performance will provide the opportunity to monitor the status of implementation of indicators set forth in the logical framework matrix.

Table 5.4: Key Project Performance Indicators

Key Performance Indicators Indicators 2003 2006 2008 1. Timeframe for establishing title deed 4 to 5 years 1 year 4 months 2. Stock of dossiers pending 10 000 5000 - 3. Volume of cadastral survey activities 3000 6000 12000 4. Sensitization campaign 2 2 2 (2007) 5. **Property tax output* 1.4% 2% 3% 6. Share of internally-generated resources in the budget

42% 43% 45

7. Poverty reduction 48.5% 46.5% 45% *Here property tax in the broad sense denotes tax on developed and undeveloped property, revenue from real estate, tax on domestic waste collection, fees on property adverts, taxes on property value added, other property fees and surcharges on undeveloped/under-developed land. ** Output denotes the share of property tax on fiscal revenue 5.6.4 Furthermore, the ADF will get the Bank’s regional office in Senegal (SNRO) involved in monitoring the project. Thus, SNRO will: (i) ensure the respect of the format of quarterly reports, the regular production and transmission of such reports to the ADF, the regular preparation of audit reports and their transmission to the ADF; (ii) offer reasoned opinion on the quarterly progress reports; (iii) process working capital requests and their replenishment in consultation with the country economist responsible for the project; (iv) authorize direct payments in consultation with the country economist responsible for the project and within the limit of the thresholds authorized for external offices; (v) participate in the annual evaluation of the Project Manager’s performance in accordance with the provisions of the employment contract; and (vi) participate in start-up, supervision and mid-term review contracts and preparation of completion reports. 5.7 Financial and Audit Reports

Accounting 5.7.1 For effective execution of expenditure, a chartered accountant will be recruited through the shortlisting procedure to put in place a private-type administrative, accounting and financial procedures manual compatible with project activities. The manual will be submitted to the Fund for prior approval. The system should take into account the project components, expenditure categories and sources of financing. Project accounting will keep full records showing expenditure by component, expenditure category and source of financing, as well as separate books for all operations financed by the Bank. The PIU accountant will ensure compliance with and implementation of the said procedures.

Audit

5.7.2 The project accounts will be audited yearly at the end of the financial year, by external auditors approved by the Fund. The audit reports which should meet Bank requirements in that regard will be forwarded yearly to the Fund within six months following the end of each financial year, subject to the suspension of disbursements.

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5.8 Donor Coordination 5.8.1 Under the coordination of the Directorate of Economic and Financial Cooperation (DCEF) in the Ministry of Economy and Finance, views were exchanged during the project appraisal with the development partners participating in the implementation of the poverty reduction strategy, the NGGP and the budgetary and financial reform action plan, especially the European Union, the World Bank, the IMF, CIDA, the AFD, the USAID and the UNDP. Actions retained by the ADF complement those of the World Bank, the European Union and CIDA. 5.8.2 The World Bank contributed to the National Good Governance Program by financing the Private Investment Promotion Project (PIPP) in the amount of USD 45 million and the DGID modernization feasibility study with a loan of USD 38 000. The implementation of the study was the World Bank’s condition to the Government of Senegal for its (i.e. WB’s) participation in the said program. Lastly, it is ready to support the Government’s Judiciary Sector Program under the judicial governance component. 5.8.3 Within the framework of the economic governance component of the NGGP, the European Union plans to provide assistance to the tune of EUR 7.33 million for the modernization of cadastral survey. Its activities will concern the procurement of remaining equipment for EUR 3 million, additional technical assistance for EUR 570 000, additional cartography for EUR 1.5 million, cadastral survey on the rest of the territory for EUR 2 million, and other sundry operations. Its operations were discussed with the Bank within the framework of the budgetary and financial reforms coordination project, and will complement those agreed to by the ADF and the Government of Senegal. Taking into account the needs in technical assistance, topographic, reprographic and computer equipment, the European Union will provide assistance on these components. Furthermore, the EU will fund cadastral surveys and cartography on the part of the national territory not covered by the ADF operation, especially in the rural area. For its part, the Bank will finance the implementation of the monographic study for preparing the reference points and map conservation through the adaptation of aerial pictures of the forty (40) localities to the reality on the ground (see 4.5.3.4). With regard to land, the Bank will cover the digitization study on land registration in Dakar and surrounding areas, while the EU will digitize other land-related services. Lastly, the Bank will fund the preparation of the DGID master plan, the study on the DGID administrative structures, the study on the contribution of these sectors to fiscal revenue, the income simulation study as well as computer hardware for the Directorate of Verification and Tax Investigations, the Directorate of State Property and the DGID itself. 5.8.4 CIDA will also support the modernization of the cadastral survey to the tune of CAD 5.2 million within the framework of its targeted budgetary resources. These resources will be used in setting up the Standard Integrated Government Tax Administration System (SIGTAS). Currently, these fiscal programs are spread between the DTAI and the General Tax Directorate. Since the SIGTAS software does not for the moment contain cadastral survey applications, its activities are covered by the Bank and will, for that reason, be complementary to those funded by CIDA. 5.8.5 In sum, all actors during the implementation phase will be coordinated within the general framework of the NGGP and the PCRBF, under the respective oversight of the Public Management Delegation and the Ministry of Economy and Finance. Specifically, the

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Project Steering Committee presided by the DGID will serve as an interface between the development partners, the NGGP and the PCRBF of the Ministry of Economy and Finance. Furthermore, coordination by the Steering Committee presided by the DGID will be facilitated by the fact that the project provides for six (6) seminars to sensitize and inform public opinion and various users of cadastral survey and State property services about project activities. Lastly, in addition to its regular supervision activities, the Bank will, through its Senegal Regional Office, remain in direct contact with various actors, within the framework of the joint budgetary and financial procedures harmonization group. VI. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Expenditure The recurrent charges accruing by the end of the project amount to UA 42 000 yearly, i.e. 1.4% of the project cost. The charges concern the maintenance of equipment (computer, topographic and reprographic) and thirteen (13) vehicles. The Government undertook to include enough resources in the consolidated capital budget starting 2008 to maintain equipment procured under the project. 6.2 Sustainability of Project Impact 6.2.1 Project sustainability (i.e. pursuit of activities and benefits beyond 2007) would be judged through Government’s capacity to finance the post-project recurrent expenditure, the generation of additional revenue and the existence of an appropriate legal and institutional framework to continue activities, motivate and win the adherence of the beneficiaries and stakeholders. The Government’s capacity to maintain and replace equipment after the project is guaranteed since Senegal reached the HIPCI completion point in April 2004, thanks to which its debt became sustainable. The country is - to a certain degree - financially at ease and is able to channel most of its available resources to development issues, poverty reduction and to meet its commitments under this project, particularly with regard to training more surveyors, maintaining and replacing computer/topographic/reprographic equipment and vehicles, all of which will contribute to sustaining the project achievements. Furthermore, the modernization of cadastral survey will enable the structure concerned to establish more title deeds, thus generating additional revenue for the pursuit of its activities. 6.2.2 Pertaining to the legal and institutional environment, the project will contribute to setting up an appropriate legal framework through the promulgation of a new law on property ownership that would secure and improve access to property, rehabilitate the image of cadastral survey, the State property and land registration departments, as well as energize the business environment. At the institutional plane, the PIU and the Steering Committee set up according to a results-based approach and tied to the Project Manager’s performance contract will leave the DGID with a heritage and a new culture. For its part, the DGID will function henceforth with a new organization chart that would contribute to the project’s sustainability. 6.2.3 Both private and institutional stakeholders will be fully motivated to participate since the working conditions of cadastral survey, State property and land registration staff will improve thanks, notably, to the computerization of their operating procedures and the rehabilitated image of the departments concerned. For economic operators, the timeframe

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for establishing and delivering title deeds would be substantially reduced, access to property secured and the business environment improved. The volume of transactions for private surveyors and notaries public would also improve. The fact that the title deed would no longer be a serious constraint to accessing housing loans would contribute to the project’s sustainability and social peace. 6.3 Major Risks and Mitigating Measures 6.3.1 The major risks facing the project includes: (i) the deterioration of the socio-political environment (with the pre-electoral campaign by the end of 2005 leading to the 2006 legislative elections and the 2007 presidential elections); (ii) the population’s reticence to cooperate during cadastral survey operations; (iii) late start-up of the project, rendering obsolete the cartography in the project zones following a rapidly evolving housing situation; (iv) non-compliance with the criteria of competence and integrity in selecting the project directors (project manager and project accountant); and (v) Donee’s failure to honor its commitments. 6.3.2 The project incorporates measures to mitigate these risks, among which: (i) the regular organization of annual awareness campaigns on cadastral survey and the organization of a major public awareness and sensitization campaign through the media (newspapers, radio and television), and various mass advertisement supports during the cadastral survey preparatory phase; (ii) the project implementation schedule which puts effective start-up for August 2005; (iii) prior approval by the Fund of the qualifications and experience of persons selected to occupy the position of project manager and project accountant, as well as the introduction of a performance contract for the project manager; (iv) submission to the Fund of an administrative, accounting and financial procedures manual for the project not later than six months following entry into force of the grant memorandum of understanding; and (v) other conditions precedent to entry into force of the grant. VII. PROJECT BENEFITS 7.1 Economic and Social Benefits 7.1.1 At the economic front, the project will have a direct positive impact on internally-generated resources mobilization at the central and local level. Pertaining to public finances, the reliability of data will help to widen the fiscal base, increasing property and related receipts to nearly CFAF 30 billion (i.e. 3% output) in line with Government objectives. The modernization of the land title establishment and distribution process will help to shorten the acquisition of such titles and access to property. It will attract more economic promoters willing to invest in Senegal as well as increase transactions between notaries public and mortgage banks. With the cadastral survey plans and GIS-based databases in place, local governments will be able to make reliable fiscal revenue projections. Lastly, the implementation of the recommendations of the study on the contribution of cadastral and related sectors to fiscal revenue will allow for better fiscal revenue projections. 7.1.2 At the social level, the strengthening of local governments following the production of the property-based tax register should make such governments financially viable, enabling them to effectively fund areas transferred to them by the central government (health, education, state property, environment, etc.) and further facilitating the

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access of more people to better basic services. Furthermore, thanks to the expected positive impact from the modernization of cadastral survey and domanial services on land procurement procedures and access to cadastral survey information, the number of land conflicts (double allocation, illegal sale of land belonging to other persons and encroachment on other people’s plots) should drop drastically. With land titles secured, the specter of poor land-owners losing their plots to the rich would recede. Poor people without land would have more possibility of becoming owners under simpler and more secure conditions. Lastly, with transparency in the land title attribution process, access to housing and living standards should logically improve. 7.2 Impact on Cross-cutting Issues 7.2.1 Impact on women: despite provisions in the new 2001 constitution promoting women’s access to land, women (especially those from the poorest social groups) continue to encounter difficulties in accessing property on account of social constraints. By restoring the rule of law in the cadastral survey and State property sectors, securing title deeds and access to ownership, the project will give women the opportunity to claim their right to property ownership. Indeed, six (6) sensitization and awareness days will be jointly organized by the DGID and the Senegal Women Lawyers Association on women’s rights to property ownership. Furthermore, the project will support positive discrimination in recruitments into the DGID and induction into the Order of Surveyors. 7.2.2 Impact on the environment: none of the project activities will have any negative impact on the environment. Based on the Bank’s criteria, the project has been classified under Category III. Better still, by providing reliable and regular information on the actual status of land, the project will help to anticipate the development of slums and contribute to the implementation of a proactive development policy through the Concerted Development Zones (CDZ) mechanism corresponding to one of the objectives of the PRSP, namely the improvement of the people’s living standard and living environment. Furthermore, the availability of basic cadastral survey and land plans on the 40 localities will also lead to the rapid improvement of their living environment, channel equipment and various road networks. 7.2.3 Impact on private sector development: since it will modernize the title deed production and attribution process, the project will ward off the specter of legal insecurity, guarantee access to property and thus contribute to improving the business climate. Transactions will increase between private consulting firms, private surveyors, notaries public and banks. Foreign investors will be further attracted to Senegal. The private sector will pour additional resources into the national economic to generate more wealth and contribute to poverty reduction. By securing access to property, thanks to the existence of cadastral plans in the 40 localities, new urban development prospects will open and the private sector offered a number of opportunities (e.g. development of tourism in Casamance).

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VIII. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusions

8.1.1 The project as outlined was prepared and appraised using the participatory process and associating all stakeholders involved in cadastral survey, State property and land registration activities, and all the development partners. It focuses solely on urban localities and its formulation took into account lessons drawn from past or ongoing operations, especially those of the Bank the World Bank, the European Union and CIDA – all participants in the economic governance component of the NGGP. 8.1.2 The project is in line with the Government’s action plan on budgetary and financial reforms as contained in the economic governance component of the NGGP. Moreover, it is in keeping with the Government’s poverty reduction strategy, of which the NGGP is a pillar. In terms of output, the project will permit the adoption of a new land ownership law, the implementation of a new DGID organization chart, a new DGID computerization master plan, the digitization of cadastral survey, State property and land registration activities, the production of a national cadastral plan based on regional cadastral plans and the setting up of a GIS-based database. By allowing for the modernization of cadastral survey, State property and land registration activities, these outputs will contribute to improving internally-generated resources mobilization and the business environment, with a view to poverty reduction. 8.2 Recommendations 8.2.1 It is recommended that a UA 2.5 million ADF grant be awarded to the Republic of Senegal for the implementation of the project described in this report, subject to the following conditions:

8.2.2 Government commitment: the Government shall undertake to:

i) Implement the conclusions and recommendations of the study on

administrative reforms and the DGID computerization master plan study (§. 2.29; 2.30 & 4.5.3.7);

8.2.3 Conditions precedent to Grant entry into force:

Entry into force of the Grant Memorandum of Understanding shall be subject to its signature by the Donee and the Fund. 8.2.4 Conditions precedent to first disbursement:

Apart from the above undertaking and conditions for entry into force, the first

disbursement of the Grant shall be subject to the Donee fulfilling the following conditions to the ADF’s satisfaction:

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i) Show to the ADF proof of setting up the Steering Committee (§. 4.5.12 & 5.2.3);

ii) Show to the ADF proof of opening with a commercial bank acceptable to the

ADF a special account bearing the project name and into which the ADF resources for use as the working capital will be paid (§. 5.5.1);

iii) Show to the ADF proof of allocating appropriate premises to the Project

Implementation Unit (§.5.2.1);

iv) Show to the ADF proof of appointing a project manager and a project accountant for the PIU, whose qualifications and experience shall be approved beforehand by the ADF (§. 4.5.3.10 & 5.2.1), as well as proof of transferring a secretary, a messenger and a driver to the Unit; and

v) Forward to the ADF the performance contract signed between the Donee

and the PIU manager, the terms and conditions of which the ADF shall have given prior approval (§4.5.3.10);

8.2.5 Other Conditions: Furthermore, the Donee shall:

i) Show to the ADF not later than 31 December 2006 proof of initiating the

surveyor recruitment process for the Cadastral Survey Office (§. 2.17 & 4.5.3.3);

ii) Show to the ADF not later than 31 July 2007 proof of appointing national

counterparts for the technical assistance staff (§ 4.5.3.3); iii) Show to the ADF not later than 31 August 2005 proof of publishing the decree

and the ministerial edict on the standing orders and the code of professional responsibilities of chartered surveyors (§ 2.32) ;

iv) Forward to the ADF not later than 30 June 2007 the new law on the land

ownership system as passed by Parliament (§. 2.5 & 2.35); and v) Show to the ADF not later than 31 December 2007 proof of making sufficient

budgetary allocations to cover the recurrent expenditure with effect from 2008 (§ 6.1).

ANNEX 1

PROJECT ZONES REGIONS VILLES

1. DAKAR 1. Dakar 2. Pikine 3. Rufisque 4. Guediawaye 5. Bargny 2. DIOURBEL 1. Diourbel 2. Bambey 3. Mbacke 4. Touba 3. FATICK 1. Fatick 2. Gossas 3. Foundiougne 4. KAOLACK 1. Kaolack 2. Kaffrine 3. Nioro 5. KOLDA 1. Kolda 2. Velingara 3. Sedhiou 6. LOUGA 1. Louga 2. Kebemer 3. Linguere 4. Dahra 7. MATAM 1. Matam 2. Ourossogui 8. SAINT LOUIS 1. Saint Louis 2. Dagana 3. Richard Toll 4. Podor 9. TAMBACOUNDA 1. Tambacounda 2. Bakel 3. Kedougou 10. THIES 1. Thies 2. Mbour 3. Tivaouane 4. Petite Cote (Joalsindiou) 5. Diass Airport Site 11. ZIGUINCHOR 1. Ziguinchor 2. Bignona 3. Oussouye This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgment concerning the legal status of a territory nor any approval or acceptance of these borders.

ANNEX 2

ANNEX 3: DETAILED PROJECT OUTPUTS

Structure Output Computer hardware: 3 servers, 40 work stations, 40 printers, 40 UPS, 50 computer desks, 7 laptops, 25 graphic printers, 3 Series I tracing tables, 8 Series II tracing tables, 5 digitizing tables, 2 digitizers, 1 AO scanner, 15 A3 scanners, 20 topo program calculators, 1 topo software, 1 GIS software, 1 photo/carto software, 1 evaluation software, 1 data base software and 1 management software. Topographic and reprographic equipment: 22 total stations, 2 GPS dishes, 2 plan copiers, 15 plan printers, 30 photocopiers, 2 sheet cutters and 2 document binders. Technical assistance: 3 surveyors, 6 senior surveying technicians.

1. Support to cadastral survey

Consultants: Map conservation and monographic study. Computer hardware: 20 PCs, 10 printers, 20 UPS, 20 computer desks, 17 scanners and 5 photocopiers. Consultants: study on computerization of land registration; archiving system study. Computer hardware: 10 laptops Computer hardware: 10 PCs, 1 back-up server for the computer center. Training: 3 persons on network administration and 3 persons on MS Exchange

2. Support to State property, verification and tax investigations, fiscal system administration and coordination

Consultants: study on the reform of the DGID structure, study on the computerization master plan, study on contribution of the sectors to fiscal revenue, study on fiscal revenue simulation. Computer hardware: 3 PCs, 1 laptop, 1 scanner, 3 printers, 3 computer desks, 3 UPS, 1 photocopier, 1 fax machine, 3 office furniture. Consultants: 1 operations manual, 3 audits.

3- Support to the PIU

Seminars: 6 sensitization campaigns on good governance in connection with cadastral survey and State property.

ANNEX 4: PACOMA IMPLEMENTATION ORGANIZATION CHART

NATIONAL GOOD GOVERNANCE PROGRAM

MINISTRY OF ECONOMY AND FINANCE

GENERAL DIRECT. OF TAX AND STATE PROPERTY

CADASTRAL SURVEY MODERNIZATION SUPPORT PROJECT (PAMOCA)

STEERING COMMITTEE

Chamber of Notaries

Order of Surveyors

Employers

Cadastral Survey Office

Directorate of State Property

Ministry of Urban Development

DTAI

Directorate of Local Government DCEF

Locally Elected Officials

CADASTRAL SURVEY

STATE PROPERTY

DVEF, DGID

Project Manager

Accountant

Secretary

Structures supported by the Project

Project Implementation Agency

Annex 5: Senegal: Cadastral Survey Modernization Project

List of Goods and Services Amount in UA ’000

01. GOODS 1238.37 1.1 Computer, topographic and reprographic equipment 1 132.54 1.2 Software and databases 62.35 1.3 Documentation 0.00 1.4 Vehicles 0.00 1.5 Consumables 33.65 1.6 Miscellaneous equipment 9.83 02. SERVICE 1079.67 2.1 Consultants 623.30 2.2 Technical assistance 413.30 2.3 Training 3.56 2.4 Seminars, study missions 11.80 2.5 Audit 27.71 03. OPERATION 60.52 3.1 Maintenance 32.18 3.2 Allowances and per diem 28.34 Sub-total 2378.56 Physical contingencies 75.00 Price escalation 51.00 GRAND TOTAL 2504.56

Annex 6: Detailed Cost by Component

Qty UP CFAF Total CFAF Incl. LC ADF CFAF GVT CFAF ADF UA GVT UA COMPONENT 1: SUPPORT TO CADASTRAL SURVEY Computer Hardware Intel RAID5 Bi-Processor server 3 4,000 12,000 12,000 0 15.84 0 PC Pentium 4, 21" monitor 40 1,500 60,000 60,000 0 79.18 0 Office printer (laser) 40 330 13,200 13,200 0 17.42 0 UPS 700 VA minimum 40 200 8,000 8,000 0 10.56 0 Laptop Pentium 4 7 1,500 10,500 10,500 0 13.86 0 PC desk 40 100 4,000 4,000 0 5.28 0 Graphic printer 20 1,500 30,000 30,000 0 39.59 0 Series I tracing table 3 10,000 30,000 30,000 0 39.59 0 Series II tracing table 8 5,000 40,000 40,000 0 52.78 0 Digitizing table 5 5,000 25,000 25,000 0 32.99 0 Digitizer 2 5,000 10,000 10,000 0 13.20 0 A0 scanner 1 12,000 12,000 12,000 0 15.84 0 A3 scanner 15 1,500 22,500 22,500 0 29.69 0 Topo program calculator 20 200 4,000 4,000 0 5.28 0 Topo software 1 6,000 6,000 6,000 0 7.92 0 GIS software 1 6,000 6,000 6,000 0 7.92 0 Photo/carto software 1 7,000 7,000 7,000 0 9.24 0 Evaluation software 1 6,000 6,000 6,000 0 7.92 0 Data management software 1 14,000 14,000 14,000 0 18.47 0 Management software 1 6,000 6,000 6,000 0 7.92 0

Topographic Equipment Total stations and accessories 31 7,700 238,700 238,700 0 314.99 0 GPS dishes 2 30,000 60,000 60,000 0 79.18 0

Reprographic Equipment Plan copier 2 5,000 10,000 10,000 0 13.20 0 Plan printer 15 5,000 75,000 75,000 0 98.97 0 Photocopier 30 2,000 60,000 60,000 0 79.18 0

Annex 6: Detailed Cost by Component Qty UP CFAF Total CFAF Incl. LC ADF CFAF GVT CFAF ADF UA GVT UA

Sheet cutter 2 325 650 650 0 0.86 0 Document binder 2 325 650 650 0 0.86 0 Technical Assistance Surveyor 3 46,800 140,400 140,400 0 185.27 0 Senior surveying technician 6 28,800 172,800 172,800 0 228.03 0 Consultants Map conservation 1 200,000 200,000 200,000 0 263.92 0 Monographic study on 40 towns 1 200,000 200,000 200,000 0 263.92 0 Vehicles 4x4 double cabin vehicles 12 18,000 216,000 216,000 216,000 0.00 285.0379

TOTAL COMPONENT 1 1,700,400 216,000 1,484,400 216,000 1,958.84 285.04

COMPONENT 2: SUPPORT TO STATE PROPERTYS Computer Hardware PC Pentium 4, 15" monitor 20 1,000 20,000 20,000 26.39 Office printer 20 300 6,000 6,000 7.92 UPS 700 VA minimum 20 200 4,000 4,000 5.28 Computer table 20 150 3,000 3,000 3.96 A3 scanner 10 1,500 15,000 15,000 19.79 Photocopier 5 2,000 10,000 10,000 13.20

Backup Server for the Computer Center RAID5 Intel bi-processor server 1 4,000 4,000 4,000 5.28

PC of the Tax Directorate PC Pentium 4, 15" screen 10 1,000 10,000 10,000 13.20

Laptops for the Directorate of Verification and Tax Investigations

Laptop Pentium 4 10 1,500 15,000 15,000 19.79

Annex 6: Detailed Cost by Component Qty UP CFAF Total CFAF Incl. LC ADF CFAF GVT CFAF ADF UA GVT UA

Training Training of 3 persons in network administration 1 1,500 1,500 1,500 1.98 Training of 3 persons in MS Exchange 1 1,200 1,200 1,200 1.58

Consultants DGID Computerization master plan 1 16,500 16,500 16,500 21.77 International consulting firm for the study on computerization of land registration

1 16,500 16,500 16,500 21.77

Study on the contribution of sectors to fiscal revenue 1 10,000 10,000 10,000 13.20 Study on the reform of DGID structures 1 10,000 10,000 10,000 13.20 Study on the fiscal simulation model 1 10,000 10,000 10,000 13.20 Study on the documents archiving system 1 10,000 10,000 10,000 13.20

TOTAL COMPONENT 2 162,700 0 162,700 0 214.70 0.00

TOTAL COMPONENT 1 1,700,400 216,000 1,484,400 0 1,958.84 0.00 TOTAL COMPONENT 2 162,700 0 162,700 0 214.70 0.00

TOTAL COMPONENTS 1 & 2 1,863,100 216,000 1,647,100 0 2,173.55 0.00

COMPONENT 3: Project Management

PC Pentium 4, 15" monitor 3 1,000 3,000 0 3,000 0 3.96 0 Laptop Pentium 4 1 1,500 1,500 0 1,500 0 1.98 0 Scanner 1 1,500 1,500 0 1,500 0 1.98 0 Office printer 3 570 1,710 0 1,710 0 2.26 0 UPS 700 VA minimum 3 350 1,050 0 1,050 0 1.39 0 Photocopier 1 2,000 2,000 0 2,000 0 2.64 0 Fax machine 1 500 500 0 500 0 0.66 0

Annex 6: Detailed Cost by Component Qty UP CFAF Total CFAF Incl. LC ADF CFAF GVT CFAF ADF UA GVT UA

MS Office 2000 SME 3 750 2,250 0 2,250 0 2.97 0 Consumables for 3 years 3 1,000 3,000 1,200 3,000 0 3.96 0 Equipment maintenance for 3 years 3 742 2,226 890 2,226 0 2.94 0 Operating software maintenance for 3 years 3 225 675 270 675 0 0.89 0 PC desk 3 150 450 450 450 0 0.59 0

Sub-total 1 19,861 2,810 19,861 0 26.21 0.00

Human Resources PIU Manager 30 1,250 37,500 37,500 9,375 28,125 12.37 37.11 Administrative and financial manager 30 750 22,500 22,500 5,625 16,875 7.42 22.27 Secretary 30 450 13,500 13,500 3,375 10,125 4.45 13.36 Messenger 30 165 4,950 4,950 1,238 3,713 1.63 4.90 Driver 30 250 7,500 7,500 1,875 5,625 2.47 7.42

Sub-total 2 85,950 85,950 21,488 64,463 28.36 85.07

Furniture and Equipment Office furniture and equipment 1 7,000 7,000 2,800 7,000 0 9.24 0.00 Liaison vehicle 1 18,000 18,000 18,000 18,000 0.00 23.75

Sub-total 3 25,000 20,800 7,000 18,000 9.24 23.75 Operating Expenses Fuel and vehicle maintenance 3 2,500 7,500 7,500 7,500 0 9.90 0.00 Insurance 3 2,000 6,000 6,000 6,000 0 7.92 0.00 Water & electricity 3 2,500 7,500 7,500 0 7,500 0.00 9.90 Telephone and communications 3 2,400 7,200 7,200 0 7,200 0.00 9.50 Sub-total 4 28,200 28,200 13,500 14,700 17.81 19.40 Studies Operations manual 1 2,000 2,000 600 2,000 0 2.64 0.00 Sub-total 5 2,000 600 2,000 0 2.64 0.00 Audit Audit 3 7,000 21,000 6,300 21,000 0 27.71 0.00

Annex 6: Detailed Cost by Component Qty UP CFAF Total CFAF Incl. LC ADF CFAF GVT CFAF ADF UA GVT UA

Information campaign on good governance practices 3 3,000 9,000 2,700 9,000 0 11.88 0.00 Sub-total 30,000 9,000 30,000 0 39.59 0.00 TOTAL COMPONENT 3 191,011 147,360 93,849 97,163 123.84 128.22

COMPONENT 1 1,700,400 216,000 1,484,400 216,000 1,958.84 285.04 COMPONENT 2 162,700 0 162,700 0 214.70 0.00

TOTAL COMPONENTS 1 & 2 1,863,100 216,000 1,647,100 216,000 2,173.55 285.04

COMPONENT 3 191,011 147,360 93,849 97,163 123.84 128.22

TOTAL BASE COST 2,054,111 363,360 1,740,949 313,163 2,297.39 413.26

ANNEX 7 Page 1/3

TOR FOR A STUDY ON THE REFORM OF SENEGAL’S FISCAL ADMINISTRATION

I. CONTEXT 1.1 Encouraged by the political will manifested by the Government of Senegal and the support of the key multilateral (the World Bank, the ADB, the European Union) and bilateral partners (specifically Canada), the Senegalese fiscal authorities initiated a vast business function modernization program by setting up and implementing a Standard Integrated Government Tax Administration System (SIGTAS), on the one hand, and embarking on the total digitization and dematerialization of cadastral survey, land and State property information, on the other.

1.2 Within that purview, an optional organizational structure is necessary in order to best support the innovations brought about by this important program. Moreover, the organizational structure currently in place is not only no more in consonance with modern fiscal management standards but also fraught with operational weaknesses. II. PURPOSE OF THE STUDY 2.1 The main aim of the study is to identify the best organizational structure to put in place within regard to general fiscal management whose strategic concern is not only effective revenue mobilization (spontaneous recovery) but also the provision of better service to users (reception, external communication, simplification, single interlocutor, visual identity, graphic card, etc.) with a view to promoting voluntary tax acceptance and an enabling environment for business. 2.2 Therefore, the study will help determine the organizational structure to put in place, the identification, relevance and type of central and grassroots units, the skills, the territorial coverage, the level of responsibilities, the external services attached to the directorates, the critical mass, the operational links, etc. III. SPECIFIC OBJECTIVES

Specifically, depending on the local context, the study should produce an optimal organizational set-up that harmoniously integrates homogeneous and operational structures to cover the following fiscal administration processes from the base to the apex:

• The fiscal base; • Recovery; • Fiscal control; • Legislation and litigation; • Integrated cadastral and land information management around the following support

processes: • Computerization and rational IT use (constant progress towards innovation,

technology watch, opening up of information systems, dematerialization, transparency and security of systems and data); management control (responsibility, effectiveness, efficiency, programming, anticipation and performance);

ANNEX 7 Page 2/3

• A new human resources management philosophy (internal communication, professional training, management-capitalization, knowledge upgrade, support search).

IV. EXPECTED OUTPUTS

Within the framework of the study objectives, fiscal administration intends to put in place a modern structural organization consistent and adapted to the country’s context. It should not only respond to the intrinsic needs related to the specific activities of each structure within the administration but also integrate common or cross-cutting activities and their respective interactions. The study guideline is based on the operational processes of fiscal administration. These support processes constitute the modernization levers and tools. Nonetheless, the main challenge remains the functionality and operationality of the organizational model proposed. The consulting firm will be responsible for:

• Diagnosing the existing situation; • Identifying and prioritizing the new structures; • Preparing the organization chart scenarios; • Assessing the human, material and procedural resources necessary; • Prioritizing the model solutions advanced by specifying the order of preference with

regard to functionality and the operational arguments; • Implementation recommendations: Big Bang (advantages-disadvantages) or gradual

(advantages-disadvantages). • Financial assessment.

V. ORIENTATIONS

In making his/her proposal, the consultant will take the following orientations into consideration:

• The diagnosis of the current situation should be conducted in the form of

interviews. Technical and operational resources will be mobilized with the fiscal administration. Interviews will be organized and conducted by consulting teams. A report will be issued for validation after each meeting;

• Needs assessment should permit the definition of all activities to be formalized.

VI. DETAILED CONTENT OF THE STUDY

6.1 Study of the current situation: Analysis of the current information management system by studying the management and information processing methods first at the level of each structure, then globally.

6.2 Identification of new units: in correlation with the study of the existing situation which should highlight the benefits and disadvantages of the existing model, the needs assessment first at the level of each structure, then globally.

6.3 Assessment of the model scenarios: outcome of the needs assessment on the basis of which a full provisional document on the model scenarios incorporating items 1 to 7 above would be produced.

ANNEX 7 Page 3/3

6.4 Financial Assessment: 6.5 Validation workshop: a validation workshop will be organized during which the provisional report will be presented and discussed.

VII. EXPERTISE Within the study framework, the consultant will present resources for:

• Organizing and conducting the study on the existing situation, and sounding out needs from all administrative units;

• Setting out the functional diagrams of these structures, highlighting the cross-cutting activities and deducing therefrom the resulting organic relation diagrams;

• Identifying the necessary resources; • Defining the implementation plan; • Costing.

VIII. MISSION DURATION

The final report will be turned in within 4 months. IX. DELIVERABLES

• 20 copies of the provisional report in paper format and a copy in electronic format. The provisional report will be turned in within 8 weeks of study inception.

• 20 copies of the final report in paper format and a copy in electronic format. The final report will be turned in one (1) month following the validation workshop on the provisional report.

X. CONSULTANT’S PROFILE

The consultant shall be a firm with solid experience in auditing. The consulting team shall comprise:

• A public finance expert and confirmed auditor with a minimum of 10 years of audit experience and solid knowledge of fiscal administration and tax management rules; and;

• An organization specialist with a minimum of 10 years of field experience and considerable knowledge of fiscal administration.

ANNEX 8 Page 1/4

TOR FOR THE PREPARATION OF A COMPUTERIZATION MASTER PLAN

1. Context The General Directorate of Tax and State Property conducted an assessment to procure computer hardware for its modernization, with a view to contributing to the national good governance program and the poverty reduction strategy. It settled on the SIGTAS software for the management of duties and taxes, a cadastral and geographic information system and a system to automatize State property and dematerialize land registration documents. The exercise is conducted with the assistance of the major development partners including the World Bank, the ADB, the EU and the UNDP (under multilateral cooperation), and France, the Netherlands and Canada (under bilateral cooperation). 2. Objectives The main objective of the mission consists in presenting to the DGID the full description of various systems, their reliability level and the cross-platform interconnections possible. It also involves preparing the plan, the schedule and the material and human resources, as well as promoting organizational and functional changes which should pave the way for the establishment of an effective and reliable system. 3 Expected Outputs Within the context of the project set objectives, the DGID plans to set up a modern information system by tapping into possibilities offered by Information and Communication Technologies (ICT). This set of information systems will be consistent and adapted to the DGID’s integration and data processing needs, with a view to enhanced management and efficiency of public finances. It should not only meet each department’s intrinsic needs but also integrate cross-cutting activities and their respective interactions. Although advanced and modern methods linked to NICTs constitute the levers and tools of modernization, the principal challenge remains, i.e. how best to respond to the needs of the authorities and users. Hence, the consulting firm will be charged with:

• Conducting the study on the existing situation with regard to network, software, material and human resources;

• Identifying and prioritizing needs; • Preparing development scenarios, taking into account the project needs at the directorates

level; • Making proposals for reorganizing the computer function of the directorates; • Identifying hardware (networks, telecommunications, servers, work stations, etc.) and

applications to put in place; • Preparing the technical specifications of hardware and software to be procured; • Planning applications installation; • Preparing a training program for DGID staff; and • Costing.

ANNEX 8 Page 2/4

4. Orientations The study covers all the DGID directorates and departments at the central and decentralized level. The strategy consists principally in pooling together the needs of various directorates, while incorporating cross-cutting issues. In that regard and in addressing the proposal, the consultant will take the following actions:

• Study the existing situation and needs by way of interviews and documentary summaries.

• Such interviews will be organized and conducted by teams of consultants in each directorate.

• From an organizational view point, expertise especially in project management is required.

This involves defining all aspects related to future implementation plans: working and development schedule, meeting and implementation planning, material, human and financial resources necessary, etc.

• The DGID Technical Committee on Computerization (which will play the role of the

Steering Committee) will organize meetings to synergize various studies whenever necessary, with a view to validating the provisional results produced by the consultant following each of its meetings with a directorate.

• The consultant will organize and host the validation workshops during which various

provisional reports will be presented (one report per directorate and the consolidated report).

5. Content of the Study 5.1 The Study on the Existing Situation

Analysis of the current information management system by studying the information management and processing systems, describing the network, software, material and human resources available in each directorate and the department as a whole. Ongoing projects will be taken into consideration.

5.2 Needs Identification

Correlatively with the study on the current situation which should highlight the positive aspects of and difficulties facing the exiting system, the study should identify the needs of each directorate, in particular, and those of the DGID in general. A documentary summary of cross-sector and inter-departmental relationships (i.e. with other departments of the Ministry of Economy and Finance) will be indispensable.

ANNEX 8 Page 3/4

5.3 Assessment of the Development Scenarios

The objectives and needs assessment at the central (global architecture) and decentralized level (sub-systems) will be pursued, with a view to a complete document on the development scenarios, especially in the light of ongoing projects. Identification of computer hardware and applications, and preparation of the technical specifications of hardware and software to be procured; software solutions in particular should be based on the key IT market standards in line with the guidelines. They should not be proprietary but should be recognized and guaranteed by a key IT publisher.

5.4 Preparation of the Training Program: Program to recruit and train computer engineers depending on the software, hardware and technology chosen. Training program on bureautics and ICT to all DGID staff.

5.5 Costing: Define the budgetary envelope necessary for all elements of the development plan.

6. Expertise

Within the study framework, the consultant present resources for:

• Organizing and conducting interviews assessing the needs of all structures of the General Directorate under the existing situation;

• Setting out the functional diagrams of these structures, highlighting the cross-cutting activities and deducing therefrom the resulting organic diagram ;

• Identifying the technical architecture applicable to the needs identified; • Determining the hardware and software infrastructure needed; • Costing.

7. Mission Duration The final report that would have taken into account comments and observations, shall be turned in within one (1) month. 8. Deliverables:

• Twenty (20) copies of the provisional report in paper format and one copy in electronic format. The provisional report shall be turned in within three (3) weeks following the inception of the study. The report will be reviewed by the Technical Committee on Computerization within one (1) month of its receipt from the consultant.

• Twenty (20) copies in paper format and one copy in electronic format. The final report will be turned in one (1) month following the validation workshop on the provisional report.

ANNEX 8 Page 4/4

9. Consultant’s Profile:

• The consulting staff should be well qualified (at least Bac+5), with confirmed experience (backing reference) in: (i) preparing IT master plans; and (ii) public finance administration;

• The profile and number of such human resources is left at the consultant’s discretion

(should be included in his service offering);

• The human resources should also demonstrate professionalism and discretion. They should respect the confidentiality of information put at their disposal.

ANNEX 9 Page 1/2

TOR OF STUDIES

I. STUDY ON THE CONTRIBUTION OF SECTORS AND SUB-SECTORS TO FISCAL REVENUE

1.1 Study Context: Senegal undertook a vast program to modernize its administration in order to address the increasingly complex and difficult economic context. In terms of fiscal administration, it is impossible with current technical tools to precisely determine the contribution of any given economic sector, except oil. Statistics at the disposal of the tax departments are not prepared on the basis of sector classification which could orientate the decision-maker on the level of participation of a given sector or sub-sector to fiscal resources. Consequently, the decision-maker lacks the lever with which to direct fiscal policy towards guaranteeing optimal revenue for achieving budgetary targets. 1.2 Given the need to control the fiscal receipts generated by certain sectors or sub-sectors and improve the tax department’s alert system with regard to fiscal policy, it is necessary to conduct a study on the contribution of sectors and sub-sectors to fiscal resources. 1.3. Study Objectives: the study will aim at attaining two objectives, namely: (i) put at DGID’s disposal a database with which to determine the contribution of sectors and sub-sectors to fiscal resources; (ii) put at DGID’s disposal monographs of activities in sectors and sub-sectors of the economy. 1.4. Expected Outputs: the exercise should generate a database on sectors and sub-sectors of the economy, and their contribution to fiscal resources by targeting:

• Production and convenience goods trade activity sectors: dairy products, flour, water, plastic, metallic products, building and public works, sugar and confectionery, fishing, mining, textile, cement and construction materials, electricity, drinks and tobacco, catering, telecommunications, transit, transport, real estate, household appliances, furniture and computer hardware;

• The peanut, cotton, rice, meat and agricultural input sub-sectors (fertilizers, pesticides, seeds, agricultural materials, feeds) to assess the impact of derogations on agriculture;

• The contribution of the non-structural sector (informal sector) to fiscal resources. The surveys will help to produce a set of monographic information on the above sectors.

1.5 Deliverables: the consultant shall produce:

• A matrix of annual fiscal data (tax base and recovery) over the 2000-2004 period on various sectors, depending on the type of duties and taxes at the disposal of the tax department;

• The potential tax base of the above sectors and sub-sectors, and the corresponding revenue by type of tax;

• Current loss of income for each sector or sub-sector; • Monographic information on which basis to determine the socio-economic interrelations

within and between the sectors and sub-sectors. A provisional report on the study on the contribution of sectors and sub-sectors to fiscal resources shall be submitted to the DGID four months from its inception. The report will be presented to the Steering Committee of the Cadastral Survey Modernization Project for consideration ten days following

ANNEX 9 Page 2/2

submission. Two months following the review of the provisional report, a final report shall be submitted to the DGID with a view to its approval by the project Steering Committee.

1.6. Consultant’s Profile: the consultant should have the required qualifications in statistical survey and database processing. S/he should be an economic statistician and will be assisted by a tax specialist. II. CREATION OF A SIMULATION MODEL 2.1 Context: the modernization and development of the Senegalese economy have rendered the information system more complex and difficult to control. In terms of fiscal administration, the technical tools currently used to project and simulate revenue have become empirical, in view of the complex relations underpinning economic, financial and accounting operations. Simple statistical instruments have begun to show their limit since they do not take into account cross-cutting relations between the economic sectors. 2.2 Given the need to incorporate macro-economic consistency into fiscal projections and simulations, it is necessary to prepare a model to reflect fiscal projections and simulation, and the impact of fiscal reforms. Consequently, the shortfalls noted in the past will either be minimized or cancelled. 2.3 Study Objectives: the purpose of the study is to improve the quality of fiscal projections and simulations. 2.4 Expected Outputs: the exercise should produce a model allowing for:

• Revenue projections that take into account the general economic context; • Fiscal simulations to measure the impact of legislative and regulatory decisions, where a

fiscal reform is in the works. 2.5 Deliverables: the consultant shall put at the DGID’s disposal a model capable of establishing fiscal simulations on which to make impact projections and calculations on types of taxes, including:

• Income tax with details on tax on private salaries, tax on civil service salaries, corporate tax and other forms of income tax;

• Turnover tax, comprising domestic VAT, customs VAT, deductible VAT, tax on banking operations and equalization tax;

• Domestic consumption tax; and • Registration fees and stamp duty.

2.6 A provisional report shall be submitted to the DGID four months following the inception of the study. The report will be presented to the Cadastral Survey Modernization Project Steering Committee ten days following its submission. Two months following the review of the provisional report, a first fiscal simulation model shall be submitted to the DGID with a view to its approval by the project Steering Committee. 2.7 Consultant’s Profile: the consultant shall have the required qualifications in economics, modelization and statistics, and will be assisted by a public finance expert.

ANNEX 10 Page 1/2

TOR FOR TECHNICAL ASSISTANCE STAFF I- CONTEXT AND NEEDS

1.1 In the June 2003 diagnostic report on the Country Financial Accountability Assessment (CFAA), the World Bank and the African Development Bank (ADB) strongly recommended the full digitization of the Cadastral Survey Office as well as the strengthening of the Directorate of State Property and the Land Registration Department. In that regard, the Government of Senegal requested various donors, including the ADB, to finance its cadastral survey digitization project. The ADB undertook to finance the first phase of the project.

1.2 The aim of the project is to permit land use control, with a view to facilitating investment guarantees and mobilizing the resources of local governments within the context of a vast good governance program.

1.3 Lack of control over the land situation, especially in Dakar, is due principally to not updating the land maps of the Cadastral Survey Office and an inefficient title deed registration system. This situation is reflected in:

- The extremely long procedures to access title deeds which neither favor the speed with which investors set up business nor bank financing conditions;

- The difficulties that State Property, Cadastral Survey and Land Registration face in meeting requests for the establishment of title deed due to shortage of technical staff.

1.4 This situation has led to a considerable pile-up of pending land dossiers. To show its faith in the project, the General Directorate of Tax and State Property (DGID) is at an advanced stage of procuring with its own resources the digital maps of the 40 leading localities in Senegal, including Dakar. The procurement will mark a first step towards achieving the national ambitions of the Cadastral Survey Office, namely:

- The existence of a National Cadastral Plan comprising thousands of sheets of cadastral plans and land maps of all localities in Senegal;

- The existence of a fiscal and land database for each of the country’s localities;

- Their exploitation by a geographic information system (GIS) which will sanction the digitization of the Cadastral Survey Office.

1.5 These outputs require that Senegal’s partners support the implementation of some of the components, including the strengthening of the operating capacity of the Cadastral Survey Office to conduct technical operations. The technical assistance idea (which involves the international recruitment of surveyors and senior surveying technicians) falls within that context.

ANNEX 10 Page 2/2

II- PURPOSE OF THE TECHNICAL ASSISTANCE The aim of the technical assistance is to strengthen the Cadastral Survey Office with quality technical human resources to ensure the continuity of the Office’s routine tasks and oversee the smooth implementation of project activities. III- MISSION OF TECHNICAL ASSISTANCE STAFF – SPECIFIC TASKS

The technical assistance staff recruited will be put at the disposal of the Cadastral Survey Office.

They will work under the supervision and direction of the Office’s managers. They will principally

be assigned the following tasks:

► Conduct basic geodesic and general topographic work;

► Reduce the stock of land parceling dossiers currently pending; and

► Update the orthophoto maps and vector plans to be procured.

IV- PROFILE OF THE TECHNICAL ASSISTANCE STAFF

The technical assistance staff should be qualified in topography and land works, and have

considerable experience. They will fall under two categories:

- Category A: three (03) surveyors (Bac + 4 or + 5) ;

- Category B: six (6) senior surveying technicians (Bac +2) ;

V – RECRUITMENT MODALITIES

The candidates will be recruited through international call for applications published wherever necessary. The recruitment will be conducted by the manager of the project implementation unit under the supervision of the steering committee and the donor.

VI- DURATION 30 months

ANNEX 11 Page 1/2

TOR OF THE MANAGER OF THE PROJECT IMPLEMENTATION UNIT

I. Objectives

1.1 Under the supervision of the Steering Committee, the Project Manager will be responsible for monitoring project-related activities. He will also prepare quarterly and annual status reports for submission to the ADF and the national authorities. 1.2 Before assuming duty, s/he will sign a performance contract with the Donee, the terms of reference of which will be submitted to the ADF for prior approval. II. Mission

The Manager of the Project Implementation Unit will perform the following key tasks:

Coordinate routine project implementation in line with the administrative, accounting and financial procedures manual; Prepare the annual and quarterly activity program, as well as supervise the preparation of the annual and quarterly budgets; Prepare quarterly reports rendering account over the project trend and status, for transmission to the ADF and the Government; Ensure that all documents required under the project are regularly forwarded to the Bank and the Government; Ensure that audit reports are prepared and duly forwarded to the ADF and the Government; Supervise the activities of the accountant, the secretary, the messenger and the driver; Maintain permanent contact with the Bank’s Regional Office in Senegal; Supervise the procurement of computer hardware in liaison with the DTAI, the DGID Computerization and Services Modernization Bureau and other specialized services of the beneficiary departments; supervise the procurement of topographic and reprographic equipment in liaison with surveyors’ representatives, the Ministry of Urban Development and Physical Planning, and the specialized cadastral survey services; Oversee better coordination with other donors’ activities within the context of the NGGP as well as the Budgetary and Financial Reforms Coordination Project; Participate in working sessions organized by the Government or other donors, during which fresh ideas for improving Senegal’s economic and social management capacity could emerge; Coordinate the general training program and prepare a schedule of activities (local training, seminars) to be implemented within the project framework;

ANNEX 11 Page 2/2

Submit to the Steering Committee all problems encountered as the implementation progresses, and propose concrete solutions to them; and Check conformity with the Bank’s rules of procedure and the process for procuring goods/services on Government’s behalf within the project framework.

III. Qualifications Required

The candidate to this position should hold a university degree in economics and have extensive experience in cadastral, State property, land and fiscal administration. Considerable knowledge of procurement procedures and a minimum of 10 years of experience in managing development projects or in international organizations will be additional assets. Good understanding of English (the Bank’s other working language) is desirable. IV. Contract Duration:

One (1) year, renewable during the project life, based on the results of the performance contract, the follow-up indicators of which are given in the table below:

Follow-up Indicators Frequency Responsibility

Procedures manual September 2005 Consultant/PIU Recruitment of technical assistance staff November 2005 PIU DGID organizational study November 2005 Consultant/PIU DGID computerization master plan November 2005 Consultant/PIU Cadastral survey sensitization workshop Annual PIU/DGID Project audit and project manager’s performance audit

Annual Consultant/ADF/Govt.

Project status report Quarterly/Annual PIU First project audit report January 2006 Consultant/PIU Implementation of three studies February 2006 Consultants/PIU Supervision Half-yearly ADF Equipment procurement April 2006 PIU/Beneficiaries Mid-term review December 2006 ADF/Govt. Government completion report March 2008 PIU/Govt.

ANNEX 12

LIST OF LOCALITIES WITH AERIAL PICTURES COVERED BY THE PROJECT

REGIONS Number/Urban

Localities Covered by the

Project

Urban Localities Covered by the Project

Total Population in Millions of Inhabitants

Population Covered by the

Project in Millions of Inhabitants

1. DAKAR 6 1-DAKAR 2-DAKAR PERIPHERIE 3- PIKINE 4- RUFISQUE 5-GUEDIAWAYE 6- BARGNY

2.4 2.4

2. DIOURBEL 4 1-DIOURBEL 2-BAMBEY 3-MBACKE 4-TOUBA

1.14 0.8

3. FATICK 3 1-FATICK 2-GOSSA 3-FOUNDIOUGNE

0.64 0.56

4. KAOLACK 3 1-KAOLACK 2-KAFFRINE 3-NIORI

1.14 0.8

5. KOLDA 3 1-KOLDA 2-VELINGARA 3-SEDHIOU

0.89 0.5

6. LOUGA 4 1-LOUGA 2-KEBEMER 3-LINGUERE 4-DAHRA

0.71 0.5

7. MATAM 2 1-MATAM 2-OUROSSOGUI

0.46 0.2

8. SAINT LOUIS 4 1-SAINT LOUIS 2-DAGANA 3-RICHARD TOLL 4-PODOR

0.78 0.5

9. TAMBACOUNDA 3 1-TAMBACOUNDA 2-BAKEL 3-KEDOUGOU

0.65 0.40

10. THIES 5 1-THIES 2-MBOUR 3-TIVAOUANE 4-PETIE COTE (JOAL SINDIOU) 5-SITE AEROPORT, DE DIAS

1.35 0.80

11. ZINGUICHOR 3 1-ZINGUICHOR 2-BIGNONA 3-OUSSOUYE

0.44 0.20

TOTAL 40 10.6 7.16