FOR OFFICIAL USE ONLY No. 30406-(22 - World Bankdocuments.worldbank.org/curated/en/... · Lena1 Counsel MNC04 v Stephen Karam Sr. Urban Economist Ayman Abu-Haija Financial Management

Document of

FOR OFFICIAL USE ONLY The World Bank

Report No. 30406-(22

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LEARNING AND INNOVATION LENDING (GRANT)

P4 THE AMOUNT OF US$3 .OO MILLION

TO

WEST BANK AND GAZA

FOR A

LAND ADMINISTRATION PROJECT

January 26,2005

Private and Financial Sector Development Department Middle East and North Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without IBRD authorization.

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LIST OF ABBREVIATIONS AND ACRONYMS

~ M O L G

Irrevocable Power o f Attome Socio-Economic Stabilization

- - International Development

VAT Value Added Tax

Vice President: Country Director: Sector Manager Task Team Leader:

Christiaan Poortman Nigel Roberts Hedi Larbi Ibrahim Daj ani

.. 11

PQR OFFICIAL USE ONLY

TABLE OF CONTENTS

A.

B.

C.

D.

E.

F.

G.

LIL JUSTIFICATION ......................................................................................................... 1

STRUCTURE OF THE PILOT .......................................................................................... 4

PROJECT COMPONENTS AND IMPLEMENTATION ............................................... 7 RISKS.. ................................................................................................................................... 8

MAIN GRANT CONDITIONS ......................................................................................... 11

READINESS FOR IMPLEMENTATION ....................................................................... 11

COMPLIANCE WITH BANK POLICIES ..................................................................... 11

ANNEXES ................................................................................................................................... 12

ANNEX 1: PROJECT DESIGN SUMMARY 12 ANNEX 2: PROJECT DESCRIPTION 20 ANNEX 3: ESTIMATED PROJECT COSTS 33 ANNEX 4: PROJECT IMPLEMENTATION 35 ANNEX 5: FINANCIAL MANAGEMENT 3s ANNEX 6: PROCUREMENT ARRANGEMENTS 40 ANNEX 7: PROJECT IMPLEMENTATION PLAN 47 ANNEX 8: PROJECT PROCESSING SCHEDULE 55 ANNEX 9: DOCUMENTS IN PROJECT FILE 56 ANNEX 10: STATEMENT ON LAND POLICY 57 ANNEX 11: MEMORANDUM OF UNDERSTANDING BETWEEN MOP AND PLA 59

This document has a restr icted d is t r ibut ion and may be used by recipients on ly in the performance o f the i r of f ic ia l duties. I t s contents may n o t be otherwise disclosed w i thout W o r l d Bank authorization.

WEST BANK AND GAZA LAND ADMINISTRATION PROJECT

Source BORROWER FINLAND: MINISTRY OF FOREIGN AFFAIRS US: AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) SPECIAL FINANCING Total:

PROJECT APPRAISAL DOCUMENT

Local Foreign Tota l 0.00 0.00 0.00 1.05 1.05 2.10

0.345 0.555 0.90

1.785 1.215 3 .OO 3.18 2.82 6.00

MIDDLE EAST AND NORTH AFRICA REGION

[ ] 50% [ 3 75%

MNSIF

[ ] 100% [XI 125% [ ] 150% [ ] < 50% or > 150%

Date: January 24,2005 Country Director: Nigel Roberts Acting Sector Director: David Steel Sector Manager: Hedi Larbi Project ID: PO80892 Lending Instrument: Learning and Innovation Lending (Grant)

Team Leader: Ibraliim Khalil Dajani Sector: General public administration (30%); Central government administration (3 0%); Law and justice (30%); Sub-national government administration (1 0%) Theme: Law and Policy making (P); Property rights (P); Participation and civic engagement (S)

Prqject Financing Data [ ] Loan [ ] Credit [XI Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others: Total Project Cost (US$m.): 6.00 Cofinancing: 3 .OO Total Bank Financing (US$m.) 3 .OO

Responsible Agencies: Ministry o f Planning (MOP) and Palestinian Land Authority (PLA)

Project Implementation Period: Start: Januarv 2005 End: December 2007

Sector Unit Estimate o f Resources Required fo r Preparation and Approval Identif ication and Preparation

Expenses to Date (US$) Estimate o f Resource Requirements (US$) Source o f Funds

Bank Budget 113,000.00 120,000.00 Trust Funds 0.00 0.00

iv

Name Ibrahim K. Dajani Wael Zakout Sameh N. Wahba John W. Bruce Paul Prettitore

Title Unit Operations Officer (Task Team Leader) MNSIF Lead Land Management Specialist EASRD Urban Management Specialist MNSIF Sr. Counsel LEGEN Lena1 Counsel M N C 0 4 v

Stephen Karam Sr. Urban Economist Ayman Abu-Haija Financial Management Specialist

V

MNSIF LOAG 1

_ _ _ ~

Ali Awais Hiroko Imamura Thao Nguyeii

Legal Counsel LEGMS Sr. Counsel LEGMS Finance Officer L O A G l

WEST BANK AND GAZA

GZ-LAND ADMINISTRATION LIL (Grant) PROPOSAL

A. LIL JUSTIFICATION

1. What i s to be learned (why the piloting)? Land and property in West Bank and Gaza (WBG), as in many parts o f the developing world, i s a common means o f storing wealth. Over the years, secure land tenure and property rights have taken on greater historical and cultural significance for Palestinians. Nevertheless, i t i s estimated that nearly 25 percent o f the court disputes in the West Bank today are land related. All o f these factors have made land titling, registration and efficient administration a matter o f paramount importance to Palestinians. Consequently, in the Palestine Development Plan (PDP), the Palestinian Authority (PA) emphasized that strengthening land management and surveying capacity i s one o f i ts top priorities. Similarly, the Socio- Economic Stabilization Plan (SESP) sought donors’ support for building the capacity o f P A agencies in the areas o f land policy and land planning and development.

The objective o f this project i s to assess the feasibility o f introducing reforms in land administration within an emerging government structure by enabling the formulation o f policy, legal and institutional changes to achieve efficient procedures for the issuance o f land titles and registration o f property transactions, and transparent processes for the management and disposal o f public land. The idea i s that this project would be the f i rst phase o f a long-term Land Administration Program, which aims at enhancing economic growth by improving land tenure security and facilitating the development of efficient land and property markets in rural and urban areas through the development o f an efficient system o f land titling and registration based on clear, transparent and coherent policies and laws and supported by an appropriate institutional structure.

Much s t i l l needs to be done in terms o f land property rights registration in WBG. Although close to 90 percent o f land in Gaza has been registered, only about 28 percent o f the land in the West Bank i s registered. While this would imply that a systematic land titling effort i s needed in the West Bank, this would be impractical given that 60 percent o f the West Bank land i s under Israeli administrative control (Areas C) and physical movement o f Palestinians in the remaining areas (Areas A and B) i s constrained by movement restrictions. For this reason, the recommended approach would rely on building registration capacity through pilot efforts in carefully selected areas. These pilot efforts are expected to clarify simultaneously the capacity requirements in the Palestinian Land Authority (PLA), the judicial system, other formal and informal mediation and dispute resolution mechanisms that could be relied upon in the process, local authorities, and the private sector serving the sector including in surveying.

The proposed LIL will address three interlinked knowledge gaps. In the context o f an emerging government structure: (i) how to develop a policy framework for land administration and elaborate the corresponding regulatory framework; (ii) how to provide land-related services through the public and private sector in such a way that i t will lead to an increased volume o f land titling and transaction registration; and (iii) how to put in place transparent public land management processes. The LIL will test these three areas in parallel.

On the policy and regulatory framework knowledge gap, the LIL will test whether, in a context o f emerging government structure, a coherent policy framework and an effective set o f laws and institutions to address land administration and management issues, including land property rights and transaction

registration and transparent public land disposition and valuation methods can be developed through a participatory process. One o f the key problems i s that the overall legal framework governing land administration and management in the WBG i s fragmented (some 26 laws) and comprises many dated laws which are in duplicate sets for West Bank and Gaza (e.g. laws on land registration and expropriation for public purpose comprise one set o f laws for the West Bank usually deriving from Jordanian laws and the other for Gaza based on a mix o f laws from the British mandate and Egyptian administration times). As such, registered lands in the WBG today stem from many legal regimes-Settled (gone through the Jordanian Taswieh or settlement process in the West Bank or the ground survey-based registration system during the British mandate in Gaza), Ottoman (based on Turlush Metes and Bounds Descriptions, which lack accuracy and suffer from the modification o f landmarks over time), Sporadic Land Registration (Tasjeel Jedid), and Condominium (since the enactment o f Law No.1 in 1996). Overall, the settlement o f property rights to land has stopped in Gaza since 1948 and in the West Bank since the 1967 war.

Another problem i s that the PLA, unti l June 2002, used to be housed in two different executive cabinet level agencies: the Ministry o f Justice (MOJ) dealing with land registration, and the Ministry o f Public Works and Housing (MOPWH) dealing with land surveys. Today, i t i s an independent government agency reporting directly to the President’s Office but without the necessary resources and capacity to undertake i t s expanded mandate. Similarly, the Ministry o f Planning (MOP), which i s responsible for policy formulation including for land, has not yet effectively exercised i ts mandate in the land sector, with the result that there are no established efforts or procedures for policymalung in this area. The LIL proposes a process for managing the task in a participatory manner and expects that such a process will lead to the desired response o f collaboration among the various entities within the Government.

On the demand-for-registration knowledge gap, the LIL will test whether the improvement o f services provided by the P L A along with those o f the private sector (in surveying) within pilot settings can lead to an increased level o f registration o f land property rights and transactions. Currently, i t i s estimated that a mere 10 percent o f al l transactions are registered with the PLA. The rest use the Kateb-el-Adel, which functions effectively as an expanded Notary Public (NP) consistent with a historical role performed in a large number o f Middle Eastern and Western European counties (such as France, Netherlands and Spain). The appointment and certification o f the NP i s under the jurisdiction o f the Higher Judicial Council. The current reference law (decree) for the certification o f the NP does not require any legal qualifications. There are approximately 15 N P s for the whole o f Palestine. The jurisdictional area o f the NP i s geographically determined. Therefore, al l land transactions from a given district can only be recorded by the assigned NP. The public appears to be using their services because o f immediate convenience and because registration used to be a cumbersome and costly process (about 6.5 percent o f property value, not including the cost o f surveying), especially when functions used to be split between the MOJ and MOPWH. The formal registration system s t i l l remains largely unutilized by the public despite the consolidation o f surveying and registration functions in the P L A and the significant reduction of registration fees to 1 percent. This i s due to many factors including lengthy and complex registration procedures especially when an Irrevocable Power o f Attorney (PA) i s used in the process, the fact that property t i t le settlement has not yet resumed in the West Bank since 1967, a manual and inefficient titlehegistration search process, limited number o f (qualified) staff especially in surveying, etc. The LIL proposes a process that will lead to improving P L A services, establishing procedures and building capacity for the systematic settlement o f land property rights, lowering o f registration fees (if necessary) and other recommended initiatives that are consistent with the learning from the preparatory land policy studies that, within pilot areas, are expected to lead to the desired response o f higher registration o f landproperty titles and transactions.

On the improvement of public land management knowledge gap, the LIL tests whether building upon the participatory process for the formulation o f a national land policy framework and through institutional development o f the PLA, i t i s possible to develop an improved knowledge base o f public land holdings

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(especially State land), to formulate a sound strategy for sustainable management o f public land that i s coordinated with municipalities, and to implement transparent procedures for public land disposition. In addition to the participatory policy formulation process, the institutional development and capacity building o f the P L A and the pilots to modernize i t s offices, the LIL proposes to work with the PLA's State Lands department, to inventory public lands (mainly State land, but also municipal land where feasible) within pilot areas and develop an overall strategy for the sustainable management o f public land that i s coordinated with municipalities' development strategies and that leverages public land towards achieving the national development objectives o f enhancing economic growth and contributing to poverty reduction. This task will be conducted in close collaboration with municipalities and with technical guidance f iom the MOP'S General Directorate o f Geographic Center and Technical Support (the entity in charge o f Geographic Information Systems at the national level) and the General Directorate o f Spatial Planning (responsible for spatial planning at the national level and workmg in close coordination with municipal planning). A key component o f such a strategy i s to tesuimplement transparent procedures and methods for the disposition by sale or lease and valuation o f public land as proposed in the policy framework for land administration. The process i s expected to lead to the desired response o f an improved knowledge base o f public land holdings. a coordinated strategy for the management o f public land. and enhanced procedures to dispose. value and strategically leverage such assets.

2. How are the results going to be used? The World Bank's current assistance strategy for the West Bank and Gaza, which was presented to the Board on December 2nd, 2003', focuses on achieving a balance between providing emergency assistance to mitigate the effects o f poverty, while at the same time maintaining a medium-term institutional development agenda. The proposed project would contribute towards strengthening good governance and building state institutions in preparation for the eventual assumption o f sovereign responsibilities associated with future Palestinian statehood. The project would support the development o f a coherent land policy and regulatory framework and efficient institutions for land administration, which are vital to a market economy in that they lay the foundations for clarifying and securing property rights and thus contribute to the improvement o f the investment climate and the provision o f an essential means for accessing credit.

The idea i s that this project would constitute the first phase o f a long-term Land Administration Program, which aims at alleviating poverty and enhancing economic growth by improving land tenure security and facilitating the development o f efficient land and property markets in rural and urban areas through the development o f an efficient system o f land titling and registration based on clear, transparent and coherent policies and laws and supported by an appropriate institutional structure. If P A commitment to reforming land administration i s sustained throughout the project, then the processes and methods developed, tested and validatedrevised through the LIL and the lessons leamt wil l form the foundations for the long-term program. I t i s important to note that a number o f multilateral and bilateral donors and agencies, including the Govemment o f Finland, USAID, EC, CIDA, and UN-Habitat, have al l expressed interest in extending downstream financial and technical support to the land sector associated to and based upon the LIL, which will be co-financed by the Govemment o f Finland and USAID. These donors and agencies have all highlighted the need for a clear framework to ensure efficient and effective use o f resources and activities.

' This project was envisaged to be a component o f a Municipal Finance and Land Tit l ing Project. However, the PCN review meeting held on February 19,2004 recommended that these topics should be addressed separately under two operations. In addition to the Land Administration Project, a follow-on operation is being identified for Emergency Municipal Services Rehabilitation Project (EMSRP) that w i l l be a municipal development project planned to be delivered in FY06.

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. 3. Other countries or situations where similar efforts have shown promise.

Various cross-country studies and other literature report that the security o f property rights does have a significant impact on overall growth, and that inadequate institutions and unclear, undocumented property rights create an environment that i s not conducive to economic growth (See Gala1 and Razzaz, 2001, pp. 4-9, for a review of the literature). T h i s LIL proposes to use participatory processes to introduce changes to reform the policy, regulatory and institutional environment for land administration, which are expected to contribute to economic growth in the long-run. Perhaps the most substantial support for such a process comes from Thailand where the Government’s 20-year land titling and registration program, initiated in 1984, i s recognized for having contributed to p o v e m alleviation through improved land tenure security and for laving; a solid and sustainable foundation for economic g-rowth in the long-term based on the “efficiency gains in the operation o f land markets, landowners’ improved access to formal credit and the continuing stream o f fiscal revenues generated by an active land market”. (see Thailand Land Titling 111 project ICR and OED Performance Audit for Thailand Land Titling II).

B. STRUCTURE OF THE PILOT 1. H o w will the learning take place? Policy and Regulatory Framework Development: The success o f the proposed participatory process would be indicated both by the behavioral responsehesponsiveness o f various public entities as well as the resulting progress in law and policymaking. The very fact that certain steps o f the process are being undertaken will indicate progress in attaining the desired objectives. The f i rst such step i s the formation o f the Land Policv Task Force (LPTF), which i s to be chaired by a senior official from the MOP and comprise senior officials from the Ministries o f Finance (MOF), Agriculture (MOA), MOJ, MOPWH, Local Government (MOLG) and National Economy (MNE), the PLA, and representatives from the private sector and c iv i l society. Thus far, the various ministries and entities that have a stake in the smooth functioning o f the land sector-MOF, Office o f the Prime Minister, MOP, MOJ, Higher Judicial Council, MOPWH, MOLG, and the PLA-have al l confirmed their commitment to the proposed project, and government’s commitment to the formation o f the LPTF was publicly announced in the July 2004 stakeholder workshop. The section on “outcome-level tests” below details the progress in terms o f drafting o f laws and policies whereas the section on “steps in conducting the LIL” details the milestones for achieving the desired response o f collaboration among the various entities within the Government.

Demand-for-Registration Development: The success o f various measures in this area would be demonstrated by the behavioral responsehesponsiveness o f the P L A in terms o f enacting and effectively implementing streamlined procedures for land titling and registration and the progress in terms o f increased land and real estate property rights and transactions registration with the PLA. Essentially, as the quality o f service from the P L A improves according to the service standards that will be established through the project and as the identified factors that limit the utilization o f the land registry are addressed (the fees charged for registration, the public’s perception o f the value o f P L A service vis-a-vis that from the NP, and/or any other factors that will be identified in the land policy studies and addressed through the study recommendations and the policymalung process), the result i s expected to be a higher volume o f registration. The learning wil l take place by testing the effectiveness o f the proposed processes and procedures, capacity building, institutional development and public awareness initiatives in the titling settlement and registration pilots and monitoring the behavioral response o f the PLA in terms o f attaining the objective o f settling and registering titles to some 40% or so o f the land parcels within the pilot areas and contributing to increased demand for registration with the PLA.

Improvement of Public Land Management: The success in this area would be demonstrated by the development o f an inventory o f public lands in the pi lot areas (mainly o f State land, but also o f municipal

4

land holdings where feasible2) with a classification o f their status, type, permissible use (where up-to-date land use plans exist) and development potential, the formulation by the P L A o f a public land management strategy that i s coordinated with municipalities towards the achievement o f their development objectives and with MOP in the scope o f the national land policy framework, and the implementation o f transparent and effective procedures for the disposition and valuation o f public lands as per the recommendations o f the public land management study. The learning wil l take place by monitoring the behavioral response o f and degree o f cooperation between PLA, MOP and the municipalities where the proposed pilots wil l take place in the process o f formulating a public land management strategy, their disposition to put in place and implement transparent procedures for disposing o f public lands, and by assessing the effectiveness o f the inventorying process.

2.Outcome-level test to be conducted. Policy and Regulatory Framework Development: The introduction o f a participatory policymalung process among the diverse interests in land administration i s expected to result in a high level o f collaboration among the various entities within the Government, which would be demonstrated by: (a) the formation o f the LPTF, with an established clear mandate over the land policy formulation process; (b) stages o f action related to the policymalung process and review o f the regulatory framework following a pre-planned schedule. These stages wil l include (but will not be limited to) setting the objectives for the policymalung process, carrying out the different priority land policy studies with a consultation process on their findings and recommendations with the different stakeholders to identify their priorities, needs and concerns, endorsement by LPTF and enactment by Cabinet o f recommendations o f immediate actions in these priority policy areas that are needed for the pilots (e.g. establishment o f land settlement courts, capacity building o f designated judges, “formalization” o f mediation and informal dispute resolution channels, etc.), developing a draft consolidated land policy framework, an action plan for implementation and draft improvements to the regulatory framework relying on broad-based consultations, endorsement by LPTF then by Cabinet o f the land policy document, implementation action plan and the revised laws, and upon enactment by the Palestinian Legislative Council (PLC) follow up implementation. Proposed triggers to proceed to the next phase (i.e. long-term land administration program) would include endorsement o f the land policy document and implementation action plan, as well as the proposals for the improvement o f the regulatory framework goveming land administration by both the Cabinet and the PLC and subsequent implementation by government ministr ies and agencies.

Demand-for-Registration Development: The development o f P L A services within pi lot areas i s expected to result in higher demand for registration o f properties and transactions. These will be measured by both PLA’s performance against the service standards developed through the project, as well as the increase in the number o f registered properties and transactions as measured against a control area where systematic land titling and registration was not implemented. Proposed triggers to proceed to the next phase (i.e. long-term land administration program) would include development o f systematic land titling capacity (both in surveying and settlement o f property rights), the PLA’s successful implementation o f established service standards and the corresponding increase the number o f property and transaction registration, as well as the endorsement by both the Cabinet and the PLC o f the proposed policy, regulatory and institutional/technical recommendations aiming at reforming the land registration system.

Improvement of Public Land Management: Within the context o f the participatory policymalung process and harmonization o f the regulatory framework, the capacity building o f the PLA and the modernization of i t s offices and functions within pilot areas i s expected to result in improved public land management processes and procedures. These wil l be measured by the development o f an inventory o f public lands in

* This wil l depend on several factors including whether an (up-to-date) municipal land use plan i s available, the local capacity level, degree o f cooperation, etc.

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the pilot areas, the coordinated formulation o f a public land management strategy with municipalities and MOP, and the enactment o f transparent and effective procedures for disposing o f and pricing public lands. Proposed triggers to proceed to the next phase (i.e. long-term land administration program) would include the endorsement by both the Cabinet and the PLC o f proposed policy, regulatory and institutional/technical recommendations aiming at reforming the public land management system.

3. Steps Involved in Conducting the LIL. Policy and Regulatory Framework Development:

0 Establish the LPTF, including high-level, influential champions for the process within government, the PLC, the private sector and civi l society (this step represents a key foundation for the process); Make the case for the urgency o f the task and the critical importance o f broad-based participation in the policymaking process by clearly outlining the benefits to be gained and the r i sks entailed by either delaying or ignoring the process; Expand commitment beyond the decision-makers; Develop a shared vision and a commonly agreed framework for proceeding; Put in place a clear timeline for drafting policies and laws and other activities; Emphasize throughout the process the gains and tangible results achieved on the ground from the implementation o f the pilots; Anticipate and prepare for inevitable attacks and attempts to derail the process, especially from special interest groups who stand to lose from the development o f a consensual and coherent policy and regulatory framework, and for the possibility o f leadership change(s); Constantly aim for building and institutionalizing a platform for sustained sectoral dialogue.

0

0

0

0

0

0

0

Demand-for-Registration Development: Identify stakeholders, resource people, champions o f change within P L A and internal and extemal forces opposing change; Identify the demand and supply-side factors l imiting registration, put on the table the facts o f PLA service vis-&vis the service standards that can both enhance demand for services and be reasonably achieved within existing constraints; Concentrate resources (including training) on addressing critical demand and supply-side impediments to registration (based on data-driven analysis) and achieving quick results; Minimize instances o f conflict through, among other measures, careful selection o f pilot areas in coordination with the authorities and different stakeholders, the integration o f formal and informal local conflict/dispute resolution channels in the title settlement process, and by deferring contested cases that were not resolved throughout the process to the next stages o f the process; Motivate key influence-yielding actors and stakeholders at various levels; Ensure the development o f a solid communication strategy and awareness campaign for local communities within the pilot areas.

Improvement of Public Land Management: 0

0

0

Identify stakeholders, resource people and champions o f change within PLA; Identify internal and external forces and interest groups opposing change o f current public land management practices; Build the case for the urgency o f the task and the critical importance o f transparent processes for management o f public lands by clearly outlining the benefits to be gained and the risks entailed by either delaying or ignoring the process;

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0

0

Identify high-level influential champion(s) for the process within the LPTF, the PLA, municipalities, the private sector and civil society; Concentrate resources on building the knowledge base o f public land holdings in the pi lot areas and on ensuring at minimum that the strategic public lands are taken into account in the management strategy for leveraging them to achieve the desired objectives and that they are subjected to the transparent disposition and valuation procedures.

C. PROJECT COMPONENTS AND IMPLEMENTATION The LIL components considered are:

Component 1: Land Policy Formulation and Development of Regulatory Framework (US$1.3 million) This component would support consensus building, though consultations and public hearings, for the formulation o f a national land policy document and an action-plan for implementation, and the revision o f the regulatory framework governing land administration. Priority land policy areas under study include: (1) land registration to identify the registry’s current degree o f accuracy and the factors limiting i ts use, (ii) the functioning o f the land markets to identify land market distortions and policy options, (iii) land disputes and resolution mechanisms, (iv) management and disposal o f public land to identify reforms in priorities, standards and processes o f public land management, (v) property valuation, and (vi) the legal and institutional framework for land administration to identify areas o f legal and jurisdictional ambiguity and/or overlap and recommend policy options and improvements to the legal framework.

Component 2: Piloting of Systematic Land Registration and Modern Land Office (US$I.9 million) This will include: (1) piloting land surveying, systematic titling and registration in areas A or B under PA jurisdiction in and around Ramallah, the West Bank, using several pilot locations selected respectively in urbadresidential, peri-urban and rural areas and covering in total some 10,000 dunums (1,000 hectares); (ii) pilot establishment of modem land offices in two locations in Ramallah, the West Bank, and Gaza with the goal o f establishing clear, monitorable service standards through re-engineering office functions, staff training, and introduction o f technologies to improve efficiency and transparency.

Component 3: Piloting of Public Land Inventory and Management Strategy (US$O. 7 million) This component would support the establishment o f an inventory o f public land in areas A and B in two municipalities, one in the West Bank and the other in Gaza, and the development o f a public land management strategy and instruments. The public land inventory would primarily focus on State land, but also on municipal land holdings where feasible. This component would complement the ongoing work financed by the International Development Research Center o f Canada (IDRC) and undertaken by the Ministry o f Planning’s Geographic Center and Technical Support Directorate involving the digitization o f Jordanian cadastral maps (until 1967) and development o f a Geographic Information Systems (GIS) database o f State land, along with procurement o f some computer equipment and staff training.

Component 4: Institutional Development (US$l. 7 million) Th is component would support: (i) institutional development to the P L A to be able to undertake i t s mandate efficiently and effectively; (ii) strengthening education programs in land administratiodmanagement and surveying; (iii) strengthening private sector capacity in surveying; (iv) public awareness and community participation campaigns; and (v) project management support for both the MOP and the PLA, including performance monitoring and evaluation and distillation o f the lessons learnt.

Finally, unallocated funds to the amount o f US$0.4 mil l ion would support: (i) any additional technical assistance that may arise through the project; and (ii) any increase in the cost o f the project components.

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Bank financing i s expected to be US$3.0 mill ion with the Government o f Finland and United States Agency for International Development (USAID) financing the remaining US$3 .O million. The Government o f Finland has pledged approximately US$2.1 mil l ion primarily towards the costs o f Component 2, while USAID will provide US$0.90 mil l ion towards the cost o f Component 4 (sub- components i, ii, and iii), as well as the two studies on the land registry accuracy and factors limiting i t s use, and property valuation in Component 1.

D. R I S K S 1. Social and Environmental Risks

Safeguard policies: None With i t s focus on policy, legal, and institutional reforms to land administration in the West Bank and Gaza, the proposed project does not trigger any safeguards policies. Specifically, the project focuses on land policy formulation, development o f a regulatory fkamework for land and property rights, institutional strengthening and capacity building o f the PLA, conducting an inventory o f public land, and piloting o f systematic land titling and registration and the re-engineering o f office functions in the P L A to enhance efficiency and customer service according to established service standards.

Environmental aspects: Environmental Category (C) Most land administration projects financed by the Bank are rated C or B (i.e. no environmental impact assessment i s required), with the rating depending on the size o f land titling activities, whether the project covers areas close to protected areas or forests, and whether the construction o f land office buildings i s envisaged .

This project i s rated C for the following reasons: (i) there wil l be no new construction; c iv i l works will be limited to minor internal office set-ups; (ii) the land titling pilots will only cover a small area, totaling 1,000 hectares in several locations representing urban, peri-urban and rural areas in and around Ramallah; and (iii) the selection o f these pilot locations wil l be done such as not to trigger other environmental safeguard policies such as on forestry (non-existent in the project area), natural resources or habitats.

Other social risks: None Even though the general experience with systematic land titling and registration projects suggests that they may cause or result in conflicts (contested rights to land between heirs in un-subdivided parcels or between owners and tenants, conflicting ownership claims, multiple layers o f rights, etc.), the current proposed project i s designed in such a way to avoid potential social conflicts. First, the scale o f the pi lot projects for systematic land registration i s purposefully small, covering a total o f 1,000 hectares (about 5,000-10,000 parcels) in several locations selected to represent different conditions: urban/ residential, peri-urban, and rural areas. The pilot locations will be selected in and around Ramallah, in areas A and B that are under the P A control. The selection o f the specific locations will be undertaken in coordination with the key government stakeholders (MOP, PLA, local authorities, etc.). The idea i s to identify areas that are representative o f the different territorial conditions (urban, peri-urban and rural) and that allow for different learning conditions (starting in the early stages with the relatively simple cases as with the areas in which the settlement process was initiated prior to 1967 but was never completed3 to more challenging cases that allow to test the effectiveness o f the adjudication/ settlement and dispute resolution procedures

These areas include locations that were surveyed but where the schedule o f claims was not prepared, other areas where the schedule o f claims was prepared but where the process was no t undertaken, and other areas where a n in i t ia l schedule o f rights was prepared but has no t undergone the appeals process.

8

in resolving different types o f unclear or contested property rights), yet where the sheer number o f contested parcels i s l imi ted in each case due to the selection o f small-scale pi lot areas. Potential conflicts would thus be o f a contained scale and more manageable through the different forms of dispute resolution mechanisms, especially with the inclusion o f community-based mechanisms.

Risk

From outputs to objective

actions may derail progress towards prevalence o f rule of law and building state institutions

Exogenous political changeslunfavorable Israeli

Rather than seeking to undertake the most challenging situations such as large areas where the sheer volume o f contested lands i s high or where the nature o f conflict i s expected to lead to violence, the idea i s to progressively test more complex cases in the systematic titling and registration pilots whi le ensuring that any potential confl ict would be l imi ted and containable. Indeed, the inherent aims o f the p i lo t projects are to: (i) stress the benefits o f land titling and registration and thus activate demand for the use o f the land registry; (ii) achieve tangible results so as to build stakeholders’ momentum towards the project and limit the potential for opposition (especially by those special interest groups with a vested interest in blocking the reform agenda); and (iii) develop the manuals, tools and capacity for surveying and title settlement. In addition, the pi lot projects will provide an opportunity to analyze the nature o f land disputes, test the dispute resolution and tit le settlement mechanisms that will be put in place (this includes identifying and capitalizing upon the existing semi-formal and informal dispute resolution mechanisms found in Palestinian society today, e.g. the conciliation role played by a head o f clan- Mokhtur), and understand the nature o f contested rights to land (both the cases that get settled throughout the process and those that are not settled) in order to explore possibilities for settling these in a subsequent large-scale program.

Risk Risk Mitigation Measure Rating

S

To further reduce the potential for conflict, the project will not issue titles to contested lands that have no t been settled successfully through the formal and informal dispute resolution mechanisms (land settlement courts, community-based mechanisms, etc.) that will be put in place. Given the uncertainty o f the exact number o f contested parcels until the pi lot locations are selected and the pilots launched, and in the a im to contain any opportunity that might escalate into conflict, i t was decided to use a conservative target for the number o f titles expected to be settledissued through the p i lo t projects (about 40% or so o f a l l land parcels). Pending cases depending o n their circumstances wil l be appealed in courts or will be referred to the subsequent phase o f the land titling program, which will be launched in the future at a larger scale on the basis o f the structure developed and tested in the pilots. The usefulness o f the contested lands that will be uncovered during the pilots (whether resolved or pending) i s in testing the effectiveness o f the settlement process and the different dispute resolution channels and proposing strategies for more effective adjudication o f rights based o n lessons learnt f rom the process.

Other R i s k s

From components to outputs Lack of political commitment for reform within the Considerable upstream planninglanalysis

PA commitment explicitly stated in their Reform Plan which incorporates specific project elements (PLA capacity building, registry consolidation, development o f legislation for land administration)

9

Risk

Implementation o f reforms jeopardized by:

(i) political-institutional turf battles among the many key government stakeholders (PLA, MOP, MOF, MOJ, MOLG, MPWH, municipalities) wi th unclear jurisdiction and/or overlapping mandates

(ii) Other interest groups that block the reform agenda

Despite the set up o f a well hnctioning system, lack o f demand for: (i) title registration (ii) transaction registration

As a result o f the long timeframe needed for participatory land pol icy formulation process:

(i) Potential loss o f available public lands as a result o f chaotic distribution

(ii) loss o f stakeholder interest

Inadequate donor coordination and/or poor leveraging o f donor resources in project

Diff iculty in hiring international consultants may affect progress o f project implementation

Risk Rating: H (High), S (Substantial), M (Modest), K

Risk Rating

M S

S

S

M

S

S Vegligil -

Risk Mitigation Measure

Cabinet issues land sector strategy statement wi th commitment to reform land administration (see draft in Annex 10) Land policy formulation will be done through participatory process

0 Quick tangible results o f pi lot projects are expected to mobilize stakeholders Donor engagement at the highest level Finally, project would b e scaled down if commitment wavers

Init ial consultations confirmed key government stakeholders’ commitment (July 22,2004 workshop minutes) Formation o f high level LPTF including al l key stakeholders Cabinet formally endorses land sector strategy letter assigning responsibility for project to M O P (mandate includes land policy formulation and it would b e viewed as an independent arbiter as it does not stand to gaidlose from reform) Donor engagement at the highest level to ensure reform agenda i s not derailed

New system aligned w i th revealed

Fol low up to ensure implementation o f

Public awareness campaign promoting

preferencesllikely incentives

policy studies recommendations

importancehenefits o f registration

Development o f immediate action plan to preserve public land during process (e.g. temporary moratorium on public land transfer, master plan update, etc.)

shortly after pol icy process i s launched aimed at showing stakeholders tangible results.

0 Continuous coordination through formal and informal roundtables, briefings, etc.

Launch o f pi lot registration projects

Coordination wi th other donors, donor engagement and direct liaison with Government o f Israel through Task Force for Project Implementation

I or Low)

10

E. MAIN GRANT CONDITIONS 1. Effectiveness Conditions

A. Negotiations 1. Statement on Land Policy was endorsed by the Cabinet on December 4,2004. 2. Formal decision to establish the Land Policy Task Force was made on December 4,2004. 3. Formal decision to establish the overall Project Management Team (PMT) which encompasses

the MOP and PLA-based PMTs (PMT-MOP and PMT-PLA) was issued and key personnel was nominated by negotiations.

4. Formal Memorandum o f Understanding on Coordination between MOP and P L A was signed on December 18,2004, and arrangements for the Project Management and Coordination Committee were finalized during appraisal.

B. Effectiveness The following has been agreed upon as condition o f effectiveness:

1. Subsidiary Agreement between PLO and P A i s executed.

F. READINESS FOR IMPLEMENTATION 1. At appraisal, the project team reviewed the proposed Project Implementation Plan and confirmed

i ts satisfactory quality.

G. COMPLIANCE WITH BANK POLICIES The project complies with a l l applicable Bank policies.

\

Nigel Roberts David Steel *.am Leader Acting Sector Director Country Director

11

ANNEXES ANNEX 1 : PROJECT DESIGN SUMMARY


Hierarchy of objectives

Sector-related CAS Goal

Enhanced state o f rule o f law

Strengthened State institutions

Follow-on Development Objective

For the long-term Land Administration Program: To enhance economic growth by improving land tenure security and facilitating the development o f efficient land and property markets in rural and urban areas, through the development of an efficient system o f land titling and registration, which i s based on clear, transparent and coherent policies and supported by an appropriate institutional structure

Key Performance Indicators

Sector Indicators

Increased investment flows in landreal estate development and investment sectors

Improved perception o f State institutions’ capacity to deliver services

Increase in confidence o f both landholders and banks in the security o f titles

Increase in number o f formal land transactions

Increase o f collateralized lending to the property sector

Increase o f collateralized lending for businesses (number and size o f loans)

Increase o f central and local government revenues from property taxes, land titling and registration fees, and public land disposal proceeds

Monitoring & 1 Critical Assumptions Evaluation

SectortCountry (from Goal to Bank Reports Mission) Government statistics

Business surveys

Donor assessment reDorts Business & citizen opinion surveys

Donor assessment renorts - -r - - --

Socio-economic studies and surveys

PLA statistics

Banking sector reports

Banking sector reports

Government budget

12

Hierarchy of objectives Key Performance Indicators

Project Development Objective 1 Outcomellmpact Indicators ;or the proposed pi lot project: To assess the feasibility of ntroducing reforms in land dmhst ra t ion within an emerging time-bound action plan) P v e m e n t structure by enabling endorsed f i rs t by LPTF, then he formulation of Policy, lega1 by Cabinet and forwarded for mnd institutional changes to PLC consideration mchieve efficient procedures for ssuance o f land titles and Recommendations to improve egistration o f property regulatory framework for land ransactions, and transparent administration endorsed f i r s t )recesses for the management and by LPTC, then by Cabinet and lisposal o f State land forwarded for PLC

consideration

Key government stakeholders start implementing action plan policy recommendations re (i) improved titlingiregistration procedures (simplified steps, revised fee structure, etc.); (ii) transparent methods for public land disposaVvaluation

Consensus on general directions o f long-term land administration program by LPTF.

Land policy recommendations (and subsequently consolidated land policy document and

Monitoring & Evaluation ~

Project reports jovernment/LPTF ifficial records

jovernment/LPTF jfficial records

;overnment/LPTF )fficial records

;overnment/LPTF If f icial records

Critical Assumptions

(from Objective to Goal) Jo exogenous political hanges I unfavorable Israeli ctions derail progress to chieve ru le o f law and build itate institutions

13


Output from each Component

1. N e w established land policy and regulatory framework for efficient land administration

Key Performance Monitoring & Indica tors Evaluation

Output Indicators Project reports

1.1 Priority land policy I Reports on: studies completed and their recommendations endorsed by LPTF

1.2 Participatory policymaking channels established

Registry accuracy Landmarkets Factors limiting registration Land disputes I&II Public land

Property valuation Land administration legal I institutional framework review Land administration proposed institutional structure

management

I

Consolidated land policy document and

and operational; consolidated implementation action

policy document and action LPTF official records plan for implementation

developed, and endorsed by Supervision mission LPTF reports

plan

1.3 LPTF effective as inter- Assessment by PMT, agenc ylministrylstakeholder missions coordination mechanism for land pol icy

1.4 Recommendations for revised land regulatory framework endorsed by LPTF and Cabinet and forwarded for consideration by P L C

'* Land administration proposed legal reforms report LPTFIgovemment official records Supervision mission reports


(from 0,utput.s to . I Objective)

Continued political support for the program

LPTF i s able to operate effectively and exercise i t s leadership role

Political buy-in and donor engagement manage to curb interest groups from derailing the process

Min is t r ies and agencies are wi l l ing to accept and implement agreed recommendations

N o opposition f rom main stakeholders, including NGOs and CBOs

Government stakeholders w i l l pass interim measures to preserve State land during pol icy formulation process

14

~~


Output from each Component

2a. Streamlined, efficient and cost effective land t i t l ing and registration procedures tested and put in place, and systematic land titling and registration pi lot projects completed

2b. Office reengineering system and service standards for P L A offices tested and put in place, PLA capacity developed, and pilot P L A offices improved and functional

3. Improved documentation of Public land and management strategy developed

Key Performance Indicators ~ . . .

Output Indicators

2a. Manuals and guidelines completed and streamlined titlingiregistration procedures put in place for testing; surveying, settlement and dispute resolution teamsi channels set up, trained and operational; about 40-50% o f parcels in pilot areas titled and registered.

2b. PLA needs assessment completed; recommendations implemented; streamlined proceduresfservice standards implemented (e.g. processing time o f title issuance and registration) and M&E system in place. Public land inventory in pi lot areas completed; strategic public lands identified; public land management strategy developed (desirable use, leveraging potential, disposal and valuation methods, etc.)

Monitoring, &

*Final reports on titlingregistration pilots

progress reports

reports

P M T quarterly

Supervision mission

Final reports on P L A modernization pilots P M T quarterly progress reports Supervision mission reports

Final reports on public land inventory and management strategy pilots P M T quarterly progress reports Supervision mission reports


(from Outputs to Obj eetive)

Government is wi l l ing to implement proposed pol icy recommendations to activate demand for registration

Effective public awareness campaign on titling/ registration benefits i s put in place

Political buy-in and donor engagement manage to curb interest groups from derailing the adoption o f transparent public land management procedures

15

1 Hierarchy of objectives

Output from each Component = I 4. Enhanced institutional capacity in land administration through: (i) improved PLA capacity to perform its mandate; (ii) improved educational training in surveying and land administration; (iii) increased number and enhanced capacity o f private surveyors; (iv) improved public awareness of titling and registration benefits and community participation in policymaking process; and (v) effective project management.

I


Output Indicators

4.1 Institutional assessment completed; strategic/ human resources development plans completed; training implemented

4.2 Assessment completed; program(s) developed and operational

4.3 Assessment completed; Training developed and operational; streamlined surveyor certification process developed and forwarded to the competent authorities for consideration

4.4 Participatiodawareness campaigns for policymaking process and for titling and registration pilots developed and operational.

4.5 PMT-MOP and PMT-PLA staffed and operational; M&E system developed and operational

Monitoring &

institutional assessment P M T quarterly progress reports Supervision mission reports

Final report on land administration and surveying education enhancement P M T progress reports Supervision mission reports

Final report on surveying capacity building P M T progress reports Supervision mission reports

Final report on participation and awareness campaigns P M T progress reports Supervision mission reports

M&E system P M T progress reports


MOP i s assigned a formal mandate to coordinate the project and i s capable to h l ly exercise i t s role

16


Project Components/Sub- Components

1. Land policy formulation and development o f regulatory frame work

2. Piloting o f systematic land titling and registration and modern P L A offices

3. Piloting o f public land inventory and management strategy

4. Institutional development


Inputs (budget for each component)

USs1.3 mi l l ion

US$l.9 mi l l ion

US$0.7 mi l l ion

USs1.7 mi l l ion

Monitoring & Evaluation

Project reports

t 1.

2. 3.

4.

5 .

6.

7.

- 8.

9.

Report on registry accuracy and factors limiting registration Land markets report Land disputes reports I&II Public land management report Property valuation report Land administration legal / institutional reports I&II (I: review; 11: proposed legal improvements) Consolidated land policy document and action plan Final report on titling and registration pilots Final report on P L A modernization pilots

10. Final report on public land inventory and management strategy pilots

1 1. Final report on P L A institutional assessment

12. Final report o n land administration and surveying education enhancement

13. Final report o n surveying capacity building

14. Final report on participation and awareness campaigns

15. M&E reports (PMT) 16. P M T periodic progress

17. Mid-term review report 18. Implementation

comdetion reDort

reports

Critical AssumDtions

(from Components to Outputs)

Government commitment and donor engagement throughout the policymaking process

Awareness campaign ensures broad-based participation in the policymaking process

Most land owners in pi lot areas have legal evidence o f title

17

Annex l a . Project Monitoring Baseline and Targets


COMPONENT 1: OUTCOME / IMPACT INDICATORS Recommendations o f priority land policy studies, consolidated policy document and action plan endorsed by LPTF and by Cabinet and forwarded to PLC for consideration Recommendations for revised regulatory framework endorsed by LPTF and Cabinet and forwarded to PLC for consideration Consensus on general directions o f the long-term land administration established by LPTF OUTPUT INDICATORS Priority land pol icy studies (registration, land markets, land disputes, property valuation, public land management, legal and institutional framework review/proposed legal improvements) completed and their recommendations endorsed by LPTF Formulation o f land policy through participatory process and implementation action plan completed Recommendations for revised land regulatory framework completed and endorsed by LPTF COMPONENT 2: OUTCOME / IMPACT INDICATORS Unclear land titles in pilot areas settled and registered by beneficiaries Improved P L A service delivery efficiency in pi lot offices as measured against established service standards:

(i) Resumption o f land title settlement activities (ii) New registration activities automated (iii) Reduced average processing time o f transactions in settled titled land (without IPA I with IPA) (iv) Increased demand for registration

OUTPUT INDICATORS Titlingiregistration procedures revised per pol icy recommendations Detailed manuals, guidelines and forms developed Settlement and dispute resolutions teams set up and trained Projects implemented according to established timetable Revised P L A service standards established P L A office reengineering system (automation, training, etc.) designed and implemented according to plan COMPONENT 3: OUTCOME /IMPACT INDICATORS Improved public land management in pilot areas as measured against established standards:

(i) State land inventoried and surveyed (ii) Transparent public land allocation mechanisms applied

I . , I

Baseline Mid-Term I Project Endof

Target Target 01/2005 06l2006 1212007

I 50% I loo% None

None I None 1 100%

None I None 1 Completed

67% 100% (4 of6) (6 o f 6) None

50% 100%

50% 100%

0% 1 20% 1 40%

None since 67 Yes Yes Manual TBE 100%

TBE

+20%

Min 7-8 day I Avg 2-3 month

1.709 (GZ)*

TBE

Same 2,573 (WB)

0% 75% 100% 0% 100% 100% 0% I 100% I 100% ~. ~.

0% 75% 100% 0% I 7% I 100%

75% 100%

~

TBD-Imp Same TBE

18

End of

01/2005 Target Target 06f2006 12/2007

I 0-4% 1 10% I 30% 1 2 lands directorates Led in workdace

3usrdincu participauuii iii p u i i ~ y i i m ~ ~ i i g i i i c a s u ~ u agaiiist :stablished target I Yes I I None I Half-way

0% 50% 100%

0% 75% 100%

5 U G L I V G I G U abbording to plan and lures endorsed

Yaigns for policymaking ding to nlan

I 0% I 100% I 100% I .V I u l ~ L l l l l l l ~

Notes: TBE To be established in the design studies according to the characteristics o f the selected pi lot areas. TBD-Imp To be determined during implementation. Baseline data for the land titlingiregistration and the public

land management pilots w i l l be collected during implementation after selecting the pi lot areas. The date for the completion o f the fol low up survey on the surveying and land administration educational program depends on the length o f the program, which w i l l be decided during implementation based o n the recommendations o f the educational needs assessment report.

registered between 1/1/2004 and 30/5/2004. These encompass 38 transaction types including land sale, inheritance, condominium sale, subdivision, etc. In the Ramallah office, the total number o f registered transactions increased by 112% between 2002 and 2003 largely due to the reduction in registration fees to 1% (even if the overall number o f transactions i s s t i l l very limited). The effect o f lowered registration fees seems to have leveled with the number o f transactions registered between 2003 and 2004 (based on data from the f i rs t 5 months o f 2004) decreasing by 6%. Note that the use o f “increased P L A revenues” as an indicator o f performance w i l l be determined during implementation depending on whether a further reduction in registration fees would be recommended through the policy studies. Overall, a total o f N IS (New Israeli Shekel) 3,529,207 was collected in the period between 1/1/2004 and 3 1/3/2004 in al l 9 P L A offices

* In the P L A offices o f Ramallah and Gaza, a total o f 1,072 and 712 transactions, respectively, have been

19

ANNEX 2: PROJECT DESCRIPTION


The proposed project aims at introducing reforms in land administration and management by way o f building consensus, through a broad-based public consultation process, on land issues leading to the formulation o f a national land policy framework accompanied by an action-plan for implementation, and the review and consolidation o f the regulatory framework goveming land administration and enactment o f a new land law. In parallel, pi lot projects for systematic land registration are intended to test proposed policy and regulatory recommendations and inform the policymalung process, activate the demand for land registration, build existing surveying capacity, test the land t i t le settlement process, understand the nature o f contested land rights (both those that get resolved through the land settlement process and those that remain unsettled) and develop a strategy for dispute resolution. Pilot projects for the modernization of the PLA’s functioning are intended to establish and test service standards and clarify capacity requirements for the PLA.

Overall, the project i s intended to assess the different stakeholders’ commitment to reforming land administration and the capacity requirements o f the PLA, court system, local authorities, and the private sector serving the sector, in addition to testing proposed recommendations for strengthening the land administration policy, regulatory and institutional framework and capacity building strategies.

The project will include the following components:

Component 1 - US$1.3 million: Land Policy Formulation and Development of Regulatory Framework

This component will provide support to the P A in formulating key land policies and elaborating a corresponding regulatory framework. I t will also support the development o f the policies aimed at increasing the rate o f land titling settlement and transaction registration, land dispute resolution, development o f efficient land and property markets, and effective, transparent processes for the management and disposal o f public lands.

The policy formulation process starts with the study o f key policy areas to be undertaken by intemational and national experts with inputlfeedback from various public, private and civi l society stakeholders. For each o f the policy studies, the diagnostic, the different alternatives for improvement and recommended alternative will be subject to consultation workshops attended by key stakeholders from the public, private and civi l society sectors and will be presented in the form o f policy notes to the LPTF (MOP, MOF, MLG, MOA, MOPWH, MOJ, MNE, PLA, HJC and one representative from each o f the private sector and civi l society organizations) for review and endorsement. Recommendations endorsed by the LPTF that require immediate interventions (e.g. temporary moratorium on the distribution o f State land in Gaza until the enactment o f public land management policies, appointment o f judges to land settlement courts for the pilot projects, adjustments to the validity period or allowable uses o f the PA, etc.) will be promptly forwarded to Cabinet (and to the PLC where relevant) for talung the appropriate actions.

After validation through consultations and by the LPTF, the outcomes o f the different policy studies and other relevant and interlinked aspects o f land policy and administration (such as land use and national/ local spatial planning, which i s currently being developed through a MOP-based project financed by the Norwegian bilateral donor agency, NORAD) will be consolidated and synthesized into a draft policy

20

document that will also be the subject o f broad-based public consultations including professional associations, communities and NGOs. The revised draft policy wil l then be submitted with a summary o f consultations and an implementation action plan to the LPTF for review and endorsement. Once endorsed by the LPTF, the policy document and action plan will be forwarded for Cabinet’s approval and then sent to the PLC for consideration and enactment. The enacted policy document and action plan will then be forwarded to the various government institutions responsible for the adoption or implementation o f these policies.

This component will support a number o f studies, assessments and sub-components including:

1. i s to assess the register accuracy and to examine the factors limiting registry utilization.

Study o f Register Accuracy and Factors Limiting Registry Utilization: The aim o f this study

In light o f the overall inadequate level o f registration o f land property rights and transactions including transfers and inheritances, i t i s essential to assess the extent to which the existing registers reflect the reality on the ground. The study would therefore “ground-truth” a sample o f registers in West Bank and Gaza to determine the scope o f this problem and i t s different manifestations in the West Bank and Gaza in light o f the widely different ratios o f systematic land t i t le settlement. The study would cross-examine the land titles and transactions recorded in these registers against the records o f the N P s to determine the percentage o f conforming cases (said to be around 10-20%), the incidence o f registered lands that were subject to subsequent unregstered transfers and the number o f cases that have never been settled or registered but which are the basis o f transactions recorded at the N P s . The study would also assess the socio-economic, legal and other factors that may account for the l ow levels o f use o f the land registry system to record transfers o f settled and unsettled lands, inheritances and other forms o f transactions/changes to the properties’ legal or physical status. I t will examine the impact on demand f o r h e o f registration o f such factors as (i) registry fees, (ii) taxes collected through the registry, (iii) widespread failure to partition estates among heirs, (iv) legally prescribed minimum parcel sizes, (v) insecurity o f land tenure, contested property boundaries, etc. and their impact such as on surveying, (vi) lack o f understanding o f the legal significance o f and benefits arising from titling, (vii) absence o f many right holders abroad, and (viii) any other factors that may negatively affect demand for registration.

Objective: The overall aim o f the study i s to improve the registry accuracy, coverage and the quality o f services provided by the PLA and N p s (where applicable). This requires measuring the extent to which the existing registers no longer provide reliable information concerning property rights in land and assessing the consequences, formulating options for efficiently updating registers, proposing the most cost effective solution and describing in detail the resources needed for this purpose, as well as proposing practical and detailed recommendations to activate demand for registration and the necessary resources for this purpose. The study will also propose recommendations on how to improve N P s ’ services related to land and property transactions and how to best clarify their mandate and integrate their functions with those o f the land registry.

The study findings and recommendations on how to activate demand for registration and improve service quality will serve to inform the design phase o f the systematic land titling and registration pilots as well as the modem land offices’ pilots. This study-which provides a technical perspective on the strengths and weaknesses o f the regulatory and institutional framework for land registration-will be closely coordinated with the study on the “Legal/Institutional Framework for Land Administration: Review and Recommendations for Improvement” (described later), which introduces the legal perspective. The latter study i s particularly important in addressing the legal framework goveming land administration in an

21

integrated manner (as opposed to a piecemeal approach o f recommending improvements to each piece o f legislation in isolation o f other related issues).

Outputs: A report describing the extent to which the registers are out o f date and proposing recommendations on how they might be efficiently updated and the resources needed for this purpose, The report will also analyze the factors limiting the use o f the land registers and propose recommendations for reforms in the legal, technical and practical aspects o f the land and property registration system and integrating the functions o f NF’s, and for public education conceming the land registry system.

Inputs: Costs o f study design, fieldwork, data analysis and write-up, local and internationally qualified expertise required (individuals). US$O. 1 million.

2. Land Markets Study: This study would assess the current performance o f land markets, formal and informal, to provide baseline information and to identify market distortions and policy options. The activation o f land markets i s one o f the objectives o f land titling, and this study would provide the necessary information to make initial estimates o f market activation, and a baseline for later measuring the project impact.

Objective: To measure market activity disaggregated by property type (residential, agricultural, etc.) and classification (formal/informal, public/private/waqf) in selected municipalities in the West Bank and Gaza in Areas A & B, to document values o f properties being bought and sold and infer residual land values, to analyze the characteristics of buyers and sellers, and to examine efficiency aspects o f the land market, including transaction costs, market information and transparency, and impact o f titling and other relevant factors on land values and land market activity.

This study-which among other things provides the technical/economic perspective on the distortions of land markets caused by inadequate laws and regulations-will also be closely coordinated with the study on the “Legal/Institutional Framework for Land Administration: Review and Recommendations for Improvement” for the same abovementioned reasons.

Outputs: A report with a body o f land market data and analysis, with recommendations for (i) reforms to improve the performance o f the land market, (ii) recording o f future land transactions, and (iii) dissemination o f land market information.

Inputs: Costs o f study design, fieldwork, data analysis and wri te up, local/regional and intemationally qualified expertise required (individuals). US$O. 15 mill ion.

3. Land Disputes Study: The study comprises two parts. The f irst will examine the causes and numbers o f land disputes based on records and surveys from the courts and other mediation and dispute resolution mechanisms and analyze their geographic incidence in relation to earlier property rights’ settlement and other factors, processes for their resolution (formal, semi-formal or informal), the extent to which these channels are effective, and population perceptions o f such channels. Particular attention will be given to how to best handle land that has not been partitioned for successions for some time in the course o f settlements. The study wil l propose recommendations to improve the existing land dispute resolution system, to develop an efficient system for the settlement o f property rights, and to capitalize on semi-formal/informal processes that contribute to mediation and dispute resolution outside o f the courts system. The study w i l l also critically examine the implications o f the widespread reliance on the P A in the West Bank as a source of land disputes and recommend how to best tackle this issue.

22

Findings f rom the f i rst component o f the study and recommendations o n h o w to activate demand for registration and improve service quality wil l serve to inform the design phase o f the systematic land titling and registration pilots.

The second part o f the study will be undertaken in parallel with the implementation of the systematic land titling pilots to dist i l l lessons f rom the experience. The study will examine a l l land parcels with contested rights (over ownershiphse, boundaries, etc.) encountered during the course o f the pilots, whether or not these cases have been resolved through the dispute resolution and titling settlement mechanisms that will be put in place. The idea i s to understand the nature, frequency and characteristics o f these disputednon- settled cases in general and disaggregated by their outcome (whether or not the cases got resolved) and assess the effectiveness o f the titling settlement and dispute resolution mechanisms (adjudication process, land settlement courts, and alternative land dispute resolution channels). One o f the key outcomes i s t o propose approaches to deal in the future with the cases that did not get resolved.

This study-which among other things provides a legalhechnical perspective o n the effectiveness o f courts and other mechanisms to settle landproperty disputes-will also be closely coordinated with the study o n the “Legal/Institutional Framework for Land Administration: Review and Recommendations for Improvement” for the same abovementioned reasons.

Objective: The first part o f the study will provide early guidance o n the nature and frequency o f disputes that will arise during settlements, which will in form the selection o f p i lo t areas, the design o f the pi lot projects, and the work o f the settlement officers and settlement courts. The second part will distill the lessons f rom the pilots’ titling settlement experience and propose measures to improve the dispute resolution and titling settlement mechanisms so as to better deal in the future with the diff icult cases of contested lands.

Outputs: For both parts of the study, dispute and dispute resolution statistics and analysis, with recommendations for approaches to dispute resolution, enhancement o f their performance, and where appropriate, legal reforms, as wel l as suggestions to improve the design and implementation o f systematic titling procedures to reduce the occurrence o f disputes.

Inputs: Localh-egional and internationally qualified expertise required (individuals). US$O. 15 mi l l ion.

4. Public Land Management Study: This study would examine the Palestinian experience with public land management to date, including the processes in place (and the extent t o which these are efficient, effective, transparent and equitable) for the documentation, preservation from encroachment and land grabs, utilization and strategic allocation and disposal o f such assets, as w e l l as the procedures o f land acquisition through condemnatiodexpropriation o f private land for public use. The study will also assess competing needs for public land in reference to existing land use plans, ident i fy critical decisions that need to be made, examine the processes for making those decisions, and assess the adequacy o f the legal framework and institutions for managing public land. In particular, I t would assess the circumstances in which and extent to which public land should be placed in private use and/or alienated. In addition to informing the policymaking process, this study would also provide useful recommendations to assist in the preparation o f Project Component 3 concerning the development o f an inventory and management strategy for public land in two municipalities and would subsequently integrate the findings and results o f these testing and learning activities.

Objective: The study wil l provide information and input to the Land Pol icy process and the public land inventory pilots, and recommendations to the PLA for reforms in priorities, standards and processes o f

23

public land management, which will thereby increase the efficiency and transparency o f decisions made in this matter.

The study findings and recommendations on how to develop transparent and equitable processes for the management o f public lands or expropriation o f private lands will serve to inform the design phase o f the public land management inventory and strategy pilots. This study-which among other things provides the technical perspective on the dysfunctions o f public land disposition and land expropriation caused by inadequate laws and regulations and/or absent enforcement-will also be closely coordinated with the study on the “Legal/Institutional Framework for Land Administration: Review and Recommendations for Improvement” for the same abovementioned reasons.

Output: Report with recommendations.

Input: Localhegional and internationally qualified expertise required (individuals). US$O. 15 mill ion.

5. Property Valuation Study: This study would examine potentials for more adequate valuation in the context o f land registration, public land disposition and other contexts, assessing existing capabilities and needs for capacity building and institutional strengthening, identifying opportunities for the private sector, examining existing practices and recommending improvements in standards and processes.

Objective: Improvement of valuation accuracy and increased valorization o f the land resource.

The study findings and recommendations on how to improve land valuation processes will inform the pilot work taking place in the project for systematic land titlinghegistration, development o f public land managementhahation strategy, and modernization o f public land offices (indeed, one o f the main causes o f delay in the land registration process-both on the PLA side and subsequently due to appeals-is said to be the dearth o f valuation experts and an unclear/contested process to determine value). As with the other studies, this work will be closely coordinated with the study on the “Legal/Institutional Framework for Land Administration: Review and Recommendations for Improvement”.

Outputs: Report and recommendations.

Inputs: Local and internationally qualified expertise required (individuals): US$0.05 million.

6. LegaUInstitutional Framework for Land Administration: Review and Recommendations for Improvement: This study consists o f two components: Part I presents a diagnostic o f the regulatory and institutional framework while Part I1 presents recommendations for improvement o f the regulatory framework.

Part I. The study would support the review o f existing land laws and regulations dealing with land and related issues (including but not limited to land registration, eminent domain, land and property taxation, property rights settlement, land survey, notary public, etc., as well as the civil code). Currently, there i s an abundance o f laws governing land administration (estimated at 26), which have been introduced over a long period o f time following different legal regimes, and which have not been updated or consolidated (some laws date as far back as the 1920s and some laws come in two different sets for the West Bank and G a ~ a ) . ~ The result i s a fragmented, incomplete and sometimes conflictinghncoherent legal framework,

Examples o f the existing land and related legislation include the laws on eminent domain (Law No. 24 o f 1943 for Gaza, Law No. 2 o f 1953 for the West Bank, and Decree No. 73 o f 1996), state land management (law reference),

24

which makes i t difficult to operate an efficient and equitable land administration system. As such, the study would identify gaps, weaknesses and instances o f conflict and inconsistency in the regulatory framework for land administration and recommend improvements to the existing framework through the identification o f laws and regulations in need o f development, revision, rationalization andor consolidation so as to avoid overlap and inconsistency in their effects and implementation.

The study would also review the existing institutional framework for land administration with a view o f identifying the key government stakeholders involved in the process (including PLA, MOP, MOF, MOJ, MOLG, MPWH, Higher Judicial Council and municipalities), examining their de ju re mandate in land administration and management relative to their de facto practice, highlighting areas o f unclear/ overlapping jurisdiction and the actiodsituations that cause confusion in the mind o f the community concerning agency jurisdiction, and identifying gaps, weaknesses, strengths and opportunities in the existing institutional framework for land administration. Particular attention wil l be paid to clarifying the mandate o f the PLA, which was partially defined in the Presidential decree that established it.

Objective: Identification o f gaps, weaknesses and instances o f conflict in the existing regulatory framework for and institutions involved in land administration, the strengths and opportunities in the existing land administration system, and recommendations for the improvement o f the existing regulatory framework.

Outputs: Report(s) with diagnostic, analysis and recommendations.

Part II: The study would support the development, revision, rationalization and/or consolidation o f laws and regulations governing land administration, as identified by the review study.

Objective: The overall objective i s to provide the P A and the PLC with sound advice to lay the legal foundation in land policy, management and administration consistent with the principles o f good governance, efficiency and equity.

Output: Draft revised laws and regulations, with supporting rationale and options as needed, developed with appropriate consultations with relevant members o f the PLC (in the committees on land, legislation, and the economy).

This study will be closely coordinated with all six abovementioned policy studies, which provide the technical perspective on the strengths and weaknesses o f the regulatory and institutional framework for each aspect o f land administration and management (registration, valuation, management o f public lands, etc.). As mentioned earlier, this study i s o f paramount importance for it provides the opportunity o f addressing the legal framework governing land administration in an integrated manner (as opposed to a piecemeal approach o f recommending improvements to each piece o f legislation in isolation o f other related issues).

Input: Localh-egional and internationally qualified expertise (individuals or firms), US$0.40 million.

7. Land Policy Formulation Process: This sub-component supports the process for consolidating and synchronizing (i) the outcomes and recommendations o f the different land policy studies (after consultations and validation by the LPTF), (ii) other relevant and interlinked aspects o f land policy and administration (such as land use and national/ local spatial planning, which i s currently being developed

condominium ownership (Law No.1 o f 1996), property rights settlement (Law No. 9 of 1928 for Gaza), land and buildings tax (under PLC review), notary public (under PLC review), land survey (under PLC review).

25

through a MOP-based project financed by the Norwegian bilateral donor agency, NORAD), and (iii) the recommendations to the legal framework into a single draft policy document that i s discussed and reviewed in broad-based public consultations involving inter alia professional associations, communities, NGOs and c iv i l society organizations. The revised draft policy will then be submitted with a summary o f consultations and an implementation action plan to the LPTF for review and endorsement. Once endorsed by the LPTF, the policy document and action plan will be forwarded for Cabinet’s approval and then sent to the PLC for consideration. Once enacted, the policy document and action plan will then be forwarded to the various government institutions responsible for the adoption or implementation o f these policies. A time-bound action plan for implementation o f the different recommendations i s also developed under this sub-component. This sub-component will also cover the cost o f developing a Monitoring and Evaluation (M&E) system for the policymalung process, focusing on such issues o f participation, inclusiveness, achievements and the lessons learnt throughout the process.

The necessary awareness and community participation campaigns including a strategy for the dissemination o f the policy document and action plan are covered under component 4. These campaigns will be undertaken under the guidance o f and in close collaboration with the PMT-MOP and i t s team in charge o f the policymaking process.

Objective: The land policy formulation process aims at consolidating the outcomes o f the different abovementioned land policy studies into a single coherent land policy document and developing a time- bound action plan for implementation, through a broad-based consultative process involving public, private and civil society stakeholders.

Output: Land policy document and action plan, with consultation summary reports. Brief policymalung M&E periodic reports with a mid-term and final report on the lessons learnt throughout the process and recommendations for improvement.

Input: LocaVregional and internationally qualified expertise (individuals or institutions) for coordinating the process and moderating the different consultation workshops/meetings, consolidating the land policy document and developing the action plan, preparing the periodic M&E reports and the mid-term and final reports with lessons learnt and suggested improvements: US$0.30 million.

Component 2 - US$1.9 million: Piloting of Systematic Land Registration and Modern Land Office

This component will support a series o f pilot projects to initiate the process o f systematic land titling and registration in urban, peri-urban and rural areas. The component will also support the development o f two modern land offices in the West Bank and Gaza.

Sub-component 1. Piloting of Systematic Land Titling and Registration: (Estimated Cost: US$l. 1 million)

This sub-component will include the design and implementation o f a series o f pilot projects o f systematic land titling (settlement o f property rights to land) with the goal o f covering around 10,000 dunums (1,000 hectares) in urban, peri-urban and rural areas. The objectives o f these pilots are to test the legal and regulatory framework, institutional coordination and the technical capacity o f the PLA and the private sector before embarking on an accelerated program of land titling. The output o f these pilots will include: (i) detailed manuals for cadastral surveying, adjudication and registration including all necessary forms, consistent with the existing laws and regulations; (ii) model technical specifications for the procurement

26

of private surveyors to undertake the cadastral surveys; (iii) three systematic adjudication teams fully trained for operation in urban, peri-urban and rural areas (each team consisting o f around 25 people); and (iv) issue and registration o f some 4,000 titles (about 40% or so o f all land parcels in the pilot areas according to the final design o f the pilot projects).

The pilots will cover around 10,000 dunums in three locations in and around Ramallah in areas A & B under PA jurisdiction. The several locations will be selected to represent urbadresidential, peri-urban and rural areas. The exact location o f these pilots including which villages to be covered wil l be decided at the early stages of implementation. The selection process will be undertaken in coordination with key government stakeholders (MOP, PLA, local authorities, etc.). The idea i s to identify areas that are representative o f the different territorial conditions (urban, peri-urban and rural) and that allow for different learning conditions (starting in the early stages o f the pilots with the relatively simple cases as with the areas in which the settlement process was initiated prior to 1967 but was never completed5 to more challenging cases that allow to test the effectiveness o f the adjudication/ settlement and dispute resolution procedures in resolving different forms o f contestation), yet where the sheer number of contested parcels i s limited in each case by virtue o f the selection o f small-scale p i lo t areas. Potential conflicts would thus be o f a contained scale and more manageable through the different forms of dispute resolution mechanisms, especially with the inclusion o f community-based mechanisms.

Rather than seeking to undertake the most challenging situations such as large areas where the sheer volume o f contested lands i s high or where the nature o f conflict i s expected to lead to violence, the idea i s to progressively test more complex cases in the systematic titling and registration pilots while ensuring that any potential conflict would be limited and containable. Indeed, the inherent aims o f the pilot projects are to: (i) stress the benefits o f land titling and registration and thus activating demand for the use of the land registry; (ii) achieve tangible results so as to build stakeholders’ momentum towards the project and limit the potential for opposition (especially by special interest groups with a vested interest in blocking the reform agenda); and (iii) develop the manuals, tools and capacity for surveying, t i t le settlement and registration.

In addition, the pi lot projects will provide an opportunity to: (iv) analyze the nature o f land disputes; (v) test the t i t le settlement and dispute resolution mechanisms that will be put in place (this includes examining the feasibility of setting specialized land courts or training designated judges, as well as identifying and capitalizing upon the existing formal and informal land dispute resolution mechanisms in operation in Palestinian society today), and; (vi) understand the nature o f contested rights to land (both the cases that get settled and those that are not settled) in order to explore possibilities for settling these in a subsequent large-scale program.

To further reduce the potential for conflict, the project will not issue t i t les to contested lands that have not been settled successfully through the formal and informal dispute resolution mechanisms (land settlement courts, community-based mechanisms, etc.) that will be put in place. Given the uncertainty of the exact number o f contested parcels until the pilot locations are selected and the pilots launched, and in the aim to contain any opportunity that might escalate into conflict, i t was decided to use a conservative target for the number o f titles expected to be settledissued through the pilot projects (about 40% or so o f al l land parcels). Pending cases depending on their circumstances will be appealed in courts or will be referred to the subsequent phase of the land titling program, which will be launched in the future at a larger scale on the basis o f the structure developed and tested in the pilots. The usefulness o f the contested lands that wil l be uncovered during the pilots (whether resolved or pending) i s in testing the effectiveness o f the

* These areas include locations that were surveyed but where the schedule o f claims was not prepared, other areas where the schedule o f claims was prepared but where the process was not undertaken, and other areas where an initial schedule o f rights was prepared but has not undergone the appeals process.

27

settlement process and the different dispute resolution channels and proposing strategies for more effective adjudication o f rights based on lessons learnt fi-om the process.

A social development specialist will be recruited as a member o f the PLA-PMT and will play a key advisory and assistance role in the dispute resolution and conflict mitigation process. In addition she/he will undertake a small social assessment during the f i rst year o f project implementation, after the definition o f the pi lot project areas and prior to the launch o f the pilots. The social assessment will draw on the findings o f the land disputes study on the nature o f land disputes and conflict resolution mechanisms, the analysis of the socio-economic factors and other obstacles limiting people’s utilization o f the land registry, the feedback obtained by then from civil society and community organizations into the land policymaking process, in addition to undertaking focus group meetings in the selected pilot areas. The purpose o f the social assessment i s to inform the pilot projects’ design and the awareness and community participation campaigns on how to strengthen, respectively, the settlemeddispute resolution mechanisms and demand for registry utilization.

The component will finance the purchase o f high resolution aerial photography or satellite images, their processing and development o f base maps, lower order triangulation points as needed, field surveys and development o f cadastral maps, training and field allowances for adjudication teams, cost o f contract staff, equipment for adjudications teams such as laptop computers and printers, and al l other supplies needed for the teams. The component will also finance one vehicle for each o f the three teams. Furthermore, the component will finance international technical assistance. The associated public awareness campaigns and community participation in support o f the pilots will be financed under Project Component 4 (iv). Finally, given the uncertainty o f the extent o f contested parcels until the pi lot locations are selected and the pilots launched, and in the aim to contain conflict, i t was decided to use a conservative target for the number of t i t les expected to be settledissued through the pi lot projects (about 40-50% o f all land parcels).

The estimated cost breakdown i s as follows: (i) international and regional technical assistance for the final design o f the pilot projects and development o f manuals, procedures, etc.: US$0.2 million; (ii) acquisition and processing o f high resolution satellite imagerylaerial photography for 10,000 dunums and base map production: US$0.05 million; (iii) local/regional internationally qualified technical assistance and contract staff for lower order triangulation points, field surveying and preparation o f cadastral maps: US$0.6 million; (iv) training, equipment and field allowances for adjudication and settlement teamdstaff (a total o f about 75 persons in 3 teams worlung for an estimated total duration o f 9 months): US$0.22 million; and (v) a small social assessment study: US$0.03 million.

Sub-component 2. Piloting of establishment of modern land offices (Estimated Cost: US$O. 8 million)

This sub-component will support the development and implementation o f two model land (PLA) offices, one in Ramallah (the regional headquarters for West Bank provinces and serving also Ramallah province) and the other in Gaza (the national headquarters and also serving Gaza str ip provinces). This wil l include re-engineering o f office b c t i o n s and the layout o f office space, introduction o f automation to enhance efficiency, and undertaking extensive training o f office staff and managers with a goal to focus on client service, improve efficiency and increase transparency. This will also include the establishment o f minimum service standards with the goal to complete the registration of all land and property transactions with a clear t i t le in one day. The sub-component will also support internal and external monitoring to ensure compliance with service standards.

The sub-component will finance the (re)furbishing/(re)partitioning o f the offices (US$0.2 million); the cost o f furniture, office equipment, surveying equipment, computer systems with software and vehicles for the survey departments (USS0.3 million), the cost o f automation, digitization and data (records and

28

maps) conversion and associated training (US$0.2 million), and local and internationally qualified technical assistance (US$O.l million).

Project Component 3 - US$0.7 million

Piloting of Public Land Inventory and Management Strategy

The project will support the development o f an inventory o f public land (primarily State-owned, but also municipal land holdings where feasible) in areas A and B in two municipalities, one in the West Bank and the other in Gaza, the formulation o f a public land management strategy and the adoption o f the necessary instruments for i t s implementation in l ine with the recommendations o f the policy study on public land management. The municipalities selected for piloting and the scale o f the pilot areas covered wil l be determined during implementation in consultation with the LPTF. The inventorying process will include the purchase o f aerial photography or satellite images and their processing for the pilot areas, data collection and verification o f records, digitization and computerization,6 and the issue o f systematic titles for non-contested public lands and transfer deeds for lands controlled by local governments, public agencies and other entities. The component will also provide support to the PLA’s general directorate of state land in the shape o f refurbishing their offices, furniture and office equipment, and training as needed. In addition, this component will support technical assistance for the design o f the inventorying process and a strategy for the management o f public lands in the two municipalities, including inventorying vacant parcels and their potential, permissible uses and mechanisms for their preservation from encroachment, identification o f strategic parcels and development potential/objectives, and the development o f transparent land disposition and valuation methods. The technical assistance will also provide support for implementation. The public land management strategy formulation process wil l be closely coordinated with municipalities to take into account their local development objectives, priorities and needs and with MOP’S Policy Research Unit to align with the national land policymaking and the nationalAoca1 spatial planning processes underway. The inclusion o f municipal land holdings in the public land inventorying process will depend on the capacity o f the selected municipalities, the extent to which their spatial land use plans are developed, and the degree o f coordination.

The project wil l finance national and international technical assistance for the design and support in the implementation o f the inventorying process and the public land management strategy (US$O. 15 million), in addition to the cost o f purchase and processing o f satellite imagery or aerial photography and development o f mapping (US$O. 1 million), furniture and equipment, computer software and hardware, and incremental operating cost including for travel, and costs associated with surveying (US$0.45 million). Detailed cost breakdown for the latter will be finalized during implementation after selection of the pilot municipalities as it depends on whether the selected West Bank branch i s covered under the modern land offices pilots (which encompass the Gaza and Ramallah offices) and the extent o f public lands in each municipality (which determines the costs associated with surveying).

I t i s important to note that, through a US$lOO,OOO IDRC-funded grant, MOP’S General Directorate for Geographic Center and Technical Support (part o f the Policy Research Unit) has digitized cadastral maps (available until 1967) in the West Bank and developed a GIS database o f public lands (as per the 1967 maps, but these have not been cross-checked against the reality on the ground). The remainder o f the funds are expected to cover some computer equipment and training to the PLA’s General Directorate o f State Lands in the Ramallah branch.

29

Project Component 4 - US$1.7 million Institutional Development

This component will include five sub-components: (i) institutional development to the PLA; (ii) strengthening education program in land administration and management; (iii) strengthening private sector capacity in surveying; (iv) public awareness and community participation; and (v) project management support for both the MOP and the PLA, including monitoring and evaluation.

Sub-component (i): Institutional Development to the Palestinian Land Authority: (Estimated Cost: US$0.25 million) This sub-component will support undertaking an institutional analysis and developing a comprehensive strategic plan and human resources development plan to prepare the PLA to undertake i t s expanded mandate more efficiently and effectively. The strategc plan study will assess among others the need for centralization versus decentralization o f services, and will develop clear mandates and job descriptions for the different directorates. Once the strategic plan i s prepared and implemented, strategic leadership and technical training needs will be identified and implemented. This sub-component will be coordinated with the pilots on modem land offices and development public land inventoqdmanagement strategy to coordinate the capacity building and training efforts and eliminate any duplication.

The sub-component will finance technical assistance to prepare the development o f a strategic plan and the human resources development plan, and the necessary training and capacity building, as well as some fumiture, computers and software.

Sub-component (ii): Strengthening the Education Program in Land Administration and Surveying. (Estimated Cost: US$0.20 million) Currently, there i s no education degree that i s provided in land administratiodmanagement, and surveying. The UN-financed technical school provides training in surveying, and some o f the engineering schools provide 1-2 courses on ground surveying. Given the critical need for professional surveyors and land administrators, one option i s to include an additional track in surveying and land administratiodmanagement in the undergraduate program. Another option i s to establish a high level diploma or masters program in land management and administration, which could be coordinated with international programs such as the Land Management Program at the University o f Munich, Germany.

The sub-component will include technical assistance to undertake the education needs assessment and assist one o f the universities in establishing an education program in land management and administration, including curriculum development and partnership arrangements with other academic and professional institutions. The project would also finance exchange o f professors and acquisition o f text books, computers and software, and some surveying equipment. Finally, the component will finance a small follow up survey o f the f i rs t graduating class to assess the effectiveness o f the educational program as measured by the ratio o f employed graduates, the types o f positions they occupy, the responsibilities assigned to them and their achievements, etc. If the f i rs t enrolled class has not graduated yet, the survey will assess their satisfaction with the ongoing education program.

Sub-component (iii): Development of Private Surveyors: (Estimated Cost: US$0.20 million) The limited number o f private surveyors i s the West Bank and Gaza means that the cost o f surveying i s high (some US$lOO-200 per dunum depending on the parcel size and location and whether it i s urban or rural) and the wait time i s long. The project will provide training and capacity building to potential surveyors and streamline the process o f certif icatiodregisttion, which i s administered by the PLA surveying directorate. The goal i s to increase the number o f private surveyors in the West Bank and Gaza

30

to about 150 registered surveyors within 2-3 years from today's estimated 60-70 surveyors. Increased competition i s anticipated to enhance the quality and efficiency o f the service and make i ts cost more competitive.

The component will finance training to potential private surveyors, technical assistance to design and deliver the training and streamline the certification requirements.

Sub-component (iv): Public Awareness and Community Participation: (Estimated Cost: US$0.20 million) There i s a need for extensive public awareness in order to achieve the intended goals o f the program. The public needs to understand the goals and objectives o f the program and i t s different components in order to collaborate with the activities. Community participation i s one o f the key success factors of such projects. The awareness campaign would include TV and radio programs, newspaper articles, as well as posters, leaflets and publications. A careful design o f the awareness campaign will be tailored to support the various activities o f the project. For example, the awareness campaign for participation in the land policy formulation process and for the dissemination o f i t s outcome (the land policy document and i ts key provisions) will be done through mass media since land policy affects the entire country. A focused awareness campaign o f the benefits o f titling and registration will be developed for the pilot project areas.

The sub-component will finance the technical assistance to design the community awareness and participation campaigns related to the policymaking process and pilot projects, equipment, cost of production o f awareness material, TV and radio airtime and cost o f publication and dissemination o f the policy document and action plan and widespread dissemination o f the executive strategy. The design and implementation o f this sub-component will be undertaken in close coordination and with guidance from the PMT-MOP and PMT-PLA in their respective mandate over project components.

Subcomponent (v): Project Management: (Estimated Cost: US$O. 88 million) A P M T will be established within the MOP, referred to as PMT-MOP. The PMT-MOP will be headed by a Team Leader, who i s also the Project Manager, and who works closely with and reports directly to a senior MOP official designated by the MOP. The PMT-MOP, which will placed as part o f the Policy Research Unit, will be responsible for the implementation o f Project Component 1 and associated activities such as the public awareness campaign and for providing guidance and coordination with the PLA team in charge o f sub-components (i), (ii), (iii), and (iv) o f Component 4.

The PLA will establish a PMT, referred to as PMT-PLA, to implement Project Components 2 and 3 and associated activities such as the public awareness campaigns, as well as sub-components (i), (ii), (iii) and (iv) o f Component 4. The PMT-PLA will be headed by a Team Leader who works closely with and reports directly to a senior P L A official designated by the PLA Chairman. Both the PMT-MOP and the PMT-PLA are part o f the overall m, which i s headed by the PMT-MOP Team Leaderproject Manager. The senior officials at M O P and P L A overseeing project implementation and the Team Leaders of PMT-MOP and PMT-PLA s i t on the PMCC, which i s chaired by M O P and which i s in charge of ensuring project coordination between the two implementing agenciedteams and resolving obstacles to implementation, providing overall guidance, and liaising with the Donor Coordination Forum.

The PMT-MOP will be supported by international and local team members and technical assistance oriented towards supporting the Team LeaderProject Manager in: (i) project management and monitoring; (ii) technical aspects o f project implementation; and (iii) the learning and innovation aspects o f the project. The PMT-MOP team composition i s shown in Annex 7.1. Similarly, international and local team members and technical assistance will also be provided to support the PMT-PLA Team Leader in: (i) pilot project management and monitoring; (ii) technical aspects o f project implementation;

31

(iii) dispute resolution aspects and (iv) the learning and innovation aspects o f the pilot projects. The PMT-PLA team composition i s shown in Annex 7.2.

The sub-component will also support the design and implementation o f a M&E system to carefully monitor the project’s development impact, testing and learning aspects and the implementation progress.

The sub-component will finance the incremental operating and management costs including contractual staff and consultants, allowances and other operational costs, including the cost o f leasing suitable premises for the PLA in Ramallah to consolidate the functions o f the former Registration, Surveying and State Land Management departments. This sub-component will also finance local and international knowledge exchange f study tours as needed.

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ANNEX 3: ESTIMATED PROJECT COSTS


BY COMPONENT

Project Cost By Component

Component 1: Land Policy Formulation and Development of Regulatory Framework

1) Study o f Register Accuracy and Factors Limiting Registry Util ization

2) Land Markets Study

3) Land Disputes Study

4) Public Land Management Study

5) Property Valuation Study

6 ) Review o f Legal and Institutional Framework for Land Admin

7) Land Policy Formulation Process

Incremental Cost (Land policy workshopsiconsultations)

Sub-Total Component 1 Component 2: Piloting o f Systematic Land Registration and Modern Land Office

I) Piloting of Systematic Land Titl ing and Registration

Project design study/development o f manuals/procedures

Settlement team training

Settlement team equipment

Settlement team field allowances

Aerial photography/satellite imagery and base map processing

Triangulation, surveying and cadastral map preparation

2) Piloting of establishment of modern land oflces

Office re-engineering/automation study Automation, digitization, data conversion, and training on

Office partitioning

Goods and equipment (fumiture, computers, vehicles, etc.)

software

Sub-Total Component 2 Component 3: Piloting of Public Land Inventory and Management Strategy

1) Refurbishing State Land Management offices

2) Furniture, equipment, computer softwarehardware and training

3 ) Purchase and processing o f satellite imageryiaerial photography

4) Surveying, demarcation 5) Technical assistance for the development o f a strategy for the management o f public lands in the two municipalities 6) Incremental operating cost including travel cost (PLA)

Sub-Total Component 3

Component 4: Institutional Development

Local US$ million

0.025

0.075

0.075

0.075

0.025

0.10

0.15

0.05

0.575

0.585 0.05

0.01

0.01

0.09 0.025

0.4

0.35 0.025

0.075

0.15

0.1

0.935

0.075

0.05

0.025

0.15

0.025

0.04

0.365

Foreign US$ million

0.075

0.075

0.075

0.075

0.025

0.30 0.10

0.00

0.725

0.485 0.15

0.03

0.08

0

0.025

0.2

0.45 0.075

0. 125

0.05

0.2

0.935

0.025

0.10 0.075

0.00

0.125

0.01

0.335

Total US$ million

0.10

0.15

0.15

0.15

0.05

0.40

0.25

0.05

1.30

1.07

0.2

0.04

0.09 0.09

0.05

0.6 0.8 0.1

0.2

0.2

0.3

1.87

0.10

0.15

0.10

0.15

0.15

0.05

0.70

33

Project Cost By Component

Project Cost By Category

Works

I) Institutional Development to the PLA

Strategic planninghuman resources development study

Goods and equipment (computers, fumiture, vehicles)

Training 2) Strengthening the Education Program in Land Administration and Management

Needs assessmenticurriculum design

Training / education

Goods and equipment (text books, surveying equipment)

3) Development of Private Surveyors

Needs assessment studyDevelopment o f training program

Training

4) Public Awareness and Community Participation

Design and implementation o f campaign (MOPPLA)

5) Project Management

Consultantistaff salaries PMT-MOP / PMT-PLA

Incremental cost (lease, operating cost, etc.) (MOPPLA)

Goods and equipment (computers, vehicles, etc.)

Sub-Total Component 4

Local Foreign Total

US$ million US$ million US$ million 0.23 0.07 0.3

Total Project Cost (excluding unallocated)

Unallocated

Estimated Total Project Cost

BY CATEGORY

Local US$ million

0.07

0.025

0.025

0.02

0.08

0.02

0.05

0.01

0.07

0.02

0.05

0.15 0.15

0.735 0.46

0.25

0.025

1.105

2.98

0.2

3.18

Foreign US$ million

0.18

0.075

0.075

0.03

0.12

0.03

0.05

0.04

0.13 0.03

0.1

0.05 0.05

0.145

0.07

0

0.075

0.625

2.62

0.2

2.82

Total US$ million

0.25

0.1 0.1

0.05

0.2

0.05

0.1

0.05

0.2

0.05

0.15

0.2 0.2

0.88

0.53

0.25

0.1

1.73

5.6

0.4

6

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ANNEX 4: PROJECT IMPLEMENTATION

GZ-LAND ADMINISTRATION LIL (Grant)

The implementation o f this project will be through an overall PMT, which comprises two PMTs based respectively at the MOP and the PLA, referred to respectively as PMT-MOP and PMT-PLA. Project coordination will take place through the PMCC, which includes senior MOP and PLA officials designated respectively by the MOP and the PLA Chairman to oversee the implementation o f their entities’ assigned project components and the Team Leaders o f PMT-MOP and PMT-PLA. The PMCC i s chaired by MOP.

The PMT-MOP i s headed by a Team Leader, who i s also the Project Manager heading the overall PMT, and who works closely with and reports directly to a senior MOP official designated by the MOP. The PMT-MOP, which will be placed as part o f the MOP’S Policy Research Unit (in the aim o f strengthening i ts capacity), will be responsible for the implementation o f Project Component 1-the policy formulation process-and associated activities such as the public awareness campaign, and ensure coordination with the P L A on Component 3 (given the established capacity within the General Directorate o f the Geographic Center and Technical Support) and subcomponents (i), (ii), (iii) and (iv) o f Component 4 as needed. The PMT-MOP will also liaise with and report (directly or through the PMCC) on the progress o f the policymalung process to the Cabinet and the PLC (namely the Land, Economic and Legal subcommittees).

The policy formulation process will be overseen by a high-level Land Policy Task Force (LPTF), which will be chaired by the senior MOP official and which will comprise senior officials from key stakeholder ministries and agencies (including the Ministries o f Local Government, Finance, Justice, Agriculture, Public Works and Housing, National Economy, Transport, and the PLA), in addition to one or more representatives from each o f the civil society and the private sector (e.% the Higher Coordination Council for the Private Sector). The mandate o f the LPTF i s to review and endorse land policy recommendations to be forwarded to Cabinet for approval and oversee the policymaking process and the adoption o f i t s recommendations within their ministries.

The PMT-MOP Team Leaderproject Manager will be supported by a team o f highly qualified and experienced international and national specialists and consultants supporting the Team Leader in: (i) project management and monitoring; (ii) technical aspects o f project implementation; and (iii) the learning and innovation aspects o f the project. The PMT-MOP includes on a full-time basis a national consultant specializing in the areas o f policy and strategic planning, a national policy coordinator for Gaza, an administrative assistant, two specialists for Procurement and Financial Management who will be placed in the MOP Financial and Administration department (to further strengthen i t s capacity) and Geographic Information Systems Specialist (GISS) who will be placed at the Geographic Center and Technical Support Directorate. The PMT-MOP will also be supported on a short-term basis by highly qualified and experienced national and international specialists in land policyh-ategic planning (supporting the policy formulation process), land markets, public land management, land disputes, land registration, property valuation, and the legalhnstitutional framework governing land administration. These consultants and specialists would be recruited competitively and as per the World Bank procurement guidelines.

The PMT-PLA will be established within the P L A to implement Project Components 2 and 3, and sub- components (i), (ii), (iii) and (iv) o f component 4, as well as associated activities such as the public awareness campaigns. It will be headed by a Team Leader who works closely with and reports directly to a senior P L A official designated by the PLA Chairman. The PMT-PLA will also develop an action plan

35

and a procurement plan for the implementation o f the different subcomponents, prepare Terms o f Reference (TORS) and bidding documents for the various tasks, oversee the contractual and implementation processes, and coordinate with MOP on Component 3 and where needed on Component 4. The PMT-PLA i s also expected to coordinate with the various stakeholders including MOJ and the Higher Judicial Council (HJC) on the establishment o f land settlement courts, and M O L G and the selected municipalities in which the systematic land titlinghegistration and public land inventorying/management pilots would be implemented. The PMT-PLA would liaise with the local universities to carry out the land management and surveying education subcomponent o f the project. The PMT-PLA would also liaise with the NGOs and specialized private f i r m s to design and carry out the awareness subcomponent o f the project.

The PMT-PLA will be supported by a team o f highly qualified and experienced national and intemational consultant team to support the PMT-PLA Team Leader in: (i) pilot project management and monitoring; (ii) technical aspects o f project implementation; (iii) dispute resolution aspects and (iv) the learning and innovation aspects o f the pilot projects. The team will include, on a full-time basis, an intemational consultant specializing in systematic land titling and land administration (who will be responsible for designing and supporting the implementation o f the systematic titlinghegistration and modem land offices pilots as well as the design o f the programs to strengthen the P L A and private surveying), a project policy coordinator for Gaza, an Administrative Assistant (AA), a Social Development Specialist (SDS) who will play an advisory and assistance role in the dispute resolution and conflict mitigation process. She/he would also conduct the social assessment study and be part o f the team to operationalize i t s findings, and two specialists for Procurement (PS) and Financial Management (FMS) who will be placed with the Accounting and Purchases departments (to build i t s capacity). The PMT-PLA wil l also be supported on a short-term basis by highly qualified and experienced national and intemational specialists in public land management and land administration education. These consultants and specialists would be recruited competitively and as per the World Bank procurement guidelines.

The PMT-MOP Team Leader/Project Manager should have an advanced degree in public policy, public administration, planning, or related fields; at least 15 years o f related project management and policy formulation experience; be proficient in report writing in both English and Arabic; possess excellent managerial and communication slulls; and demonstrate in-depth knowledge o f the land sector issues, challenges and complexities. The Policy Coordinator in Gaza should have advanced degrees in public administration, engineering, law, or related fields; at least 7 years o f related experience; possess excellent communication sk i l ls in English and Arabic; and demonstrate knowledge o f the land sector.

The PMT-PLA Team Leader should have an advanced degree in land administration, engineering, planning, or related fields; at least 10 years o f related project management experience including in land administration projects; be proficient in report writing in both English and Arabic; possess excellent managerial and communication skil ls; and demonstrate in-depth knowledge o f the land sector issues, challenges and complexities. The PMT-PLA Gaza Coordinator should have advanced degrees in public administration, engineering, law, or related fields; at least 7 years o f related experience; possess excellent communication sk i l ls in English and Arabic; and demonstrate knowledge o f the land sector issues.

For each o f the PMT-MOP and PMT-PLA, the FMS should have an advanced degree in accounting, financial management or related fields and a minimum o f 7 years o f related work experience (experience in World Bank projects, financial safeguards and reporting will be a plus). The SDS should have a minimum o f 10 years o f experience in social development with an emphasis on community participation, community-based development, mediation and alternative disputekonflict resolution, preferably in land disputes, and familiarity with land-related issues. The PS should have an advanced degree in engineering or other relevant fields and a minimum o f 7 years o f related work experience (experience in World Bank projects, procurement safeguards and reporting will be a plus). The GISS who will be coordinating

36

between MOP and P L A in the area o f geographic information and in particular to national triangulation points, should have an advanced degree in engineering, geography or information technology and a minimum o f 7 years o f practical experience. Finally, the AA should have a minimum o f BA degree, strong proficiency in English, minimum o f 5 years o f experience in office administration, experience in correspondence and report preparation; knowledge o f Microsoft Word, Excel and Power Point and possess excellent communication ski l ls.

Both the PMT-MOP and PMT-PLA will be responsible for preparing progress reports. The Project Manager in hisher capacity as head o f the overall PMT will consolidate these reports and submit them to the World Bank on quarterly basis. The PMT-MOP and PMT-PLA will cany out regular meetings with the Bank’s team as well as the donor coordination group to review the progress reports and address the challenges facing implementation.

37

ANNEX 5: FINANCIAL MANAGEMENT


Summary: The implementation o f this project will be through an overall PMT, which comprises two PMTs (each headed by a Team Leader) based respectively at the MOP and the P L A and referred to respectively as PMT-MOP and PMT-PLA. The PMT-MOP Team Leader i s also the Project Manager, chairing the overall PMT. Each PMT will be responsible for separate components and will have a separate Special Account and maintains i t s own financial records. However, consolidation o f the project accounts remains the responsibility o f the PMT-MOP Team Leader in hisher capacity as Project Manager.

The financial management system (FMS) at MOP follows the general government systems and was assessed under the on-going Emergency Services Support Projects (ESSP) and al l weaknesses identified in that assessment were properly addressed through detailed capacity building program. Accordingly, the MOP has in place an adequate FMS including accounting, reporting, internal control, record management system, internal auditing. However, there are no acceptable external audit arrangements. Accordingly, the overall financial management responsibilities will be vested in the finance department o f the MOP to which an FMWaccountant i s appointed by the Project, and an independent qualified auditor acceptable to IDA will be appointed for the project. On the other hand, the FMS at P L A requires significant improvement to reach a satisfactory level and meet IDA’S minimum requirements. Therefore, the PMT- P L A will be staffed with qualified financial manager financed by the project (to be hired within one month fkom project signing) and supported by computerized accounting and reporting system that meets the project’s FM requirements. The FM manager will have considerable experience in dealing with IDA- financed projects and would transmit experience to the permanent PLA finance department. At M O P the payment process will follow the respective internal control procedures o f the MOP, while at PLA payments are processed at the PMT-PLA.

Risk Assessment: The inherent risk i s considered moderate as the recent CFAA had recognized the recent developments in the government financial management system incorporated in the on-going government reform program. The CFAA explicitly identified the adequacy o f the government financial management framework, and had rated the overall financial management risk as significant, which supports adjustment lending and budgetary support to the PA. The control risk i s considered high hence to the PMT-PLA are yet to be established. However, MOP has in place an adequate control system and the PMT-PLA wil l be supported with adequate control policies and procedures prior to effectiveness. The detection risk i s considered high as the PMT-PLA will be established newly, however it will supported wi th qualified FM manager and provided with adequate FM policies and procedures and accounting system.

Project Accounting and Records Management: Project accounts will be maintained on accrual basis following intemational accounting standards by the PMT-PLA. M O P wil l maintain project accounts following the government cash basis system with provisions for accrued payments. Quarter-end reports wil l be prepared on accrual basis and project accounts will be consolidated at the MOP. Each agency will maintain i t s own financial records. Upon project completion al l records will be kept at for at least one year after the submission o f the latest audit report to IDA.

Auditing: The project financial statements including it balance sheet and cash f low statement will be annually audited by qualified independent auditor acceptable to IDA under terms o f reference acceptable to IDA. The audit w i l l be conducted in accordance with intemational standards on auditing and will cover

38

financing provided by all sources. The audit report would be submitted to IDA within four months o f year end.

Financial Monitoring Reports (FMR): The MOP and the PMT-PLA wil l prepare quarterly FMR which consist o f (i) statement o f cash receipt and expenditures for the period and cumulatively along with explanations o f significant variances between budgeted and actual amounts, and cash balances o f the project, (ii) statement on procurement o f goods and works below the stated prior review threshold, (iii) physical progress containing actual progress on project implementation. The formant and contents o f the FMR will be agreed during negotiation. The MOP and i t s PMT will be responsible for the consolidation o f the FMR.

Flow of Funds: IDA funds will be channeled to each implementing agency through the agency’s own Special Account (SA) to be established under the Central Treasury Account (CTA) in the name o f the agency for project. The amount o f the authorized allocation for SA-1 managed by MOP i s equivalent to US$1,850,000 and SA-2 managed by P L A i s equivalent o f US$1,150,000. To simplify the disbursement process, the M O F will allow the MOP and the PMT-PLA to withdraw funds directly from their respective Special Account without a need to transfer the funds to either MOP or P L A expenditure account. Thus, each o f the MOP and the PMT-PLA will be the sole signatory on the payments made from their respective Special Account. Each o f the MOP and PMT-PLA wil l be responsible for preparing and signing i t s Withdrawal Applications and have them co-signed by the Ministry o f Finance within five business days. The M O F will review supporting documents o f Withdrawal Applications on ex-post basis except for the last Withdrawal Application which would be made on ex-anti basis.

Disbursement: Disbursement will be based on transactional disbursement methods including replenishments to the Special Accounts and reimbursements with full documentation andor statements o f expenditure (SOE), direct payments, and special commitments issued against letters o f credit. The limits of expenditures amounts that can be claimed under SOE are (i) goods US$lOO,OOO, (ii) works US$ 100,000, (iii) consulting f i r m s US$lOO,OOO and individual consultants US$50,000 and operating expenses.

VAT Control: The WB&G draft on Country Financing Parameters (CFP) call for financing o f VAT and other reasonable taxes in W&G. If the CFP are approved prior to project negotiations, then it will be possible to finance the VAT. In the unlikely situation that CFP are not approved, VAT will be paid as in regular business practices; however, funds are not to be withdrawn from the two SAs to pay for VAT.

Supervision: Financial management supervision wil l be conducted in accordance with the IDA guidelines and procedures by financial management specialist, financial management analyst and disbursement staff. The project will be visited at least twice a year. Financial management supervision mission reports will be made, through the project team leader, available to other financiers.

39

ANNEX 6: PROCUREMENT ARRANGEMENTS


A. General

Procurement for the proposed project would be carried out in accordance with the World Bank’s “Guidelines: Procurement Under IBRD Loans and IDA Credits” dated May 2004; and “Guidelines: Selection and Employment o f Consultants by World Bank Borrowers” dated May 2004, and the provisions stipulated in the Grant Agreement. The general description o f various items under different expenditure category i s provided below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame will be agreed between the Client and the Bank project team and summarized in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

Procurement of Works (US$O. 3million): Works procured under this project, would include partitioning o f the two or more offices (in the West Bank and in Gaza). For estimated contract values o f US$lOO,OOO or more, National Competitive Bidding procedures would be used. For contracts below US$lOO,OOO Shopping procedures would be used in accordance with para. 3.5 o f Bank Guidelines.

Procurement of Goods (US$O. 74 million): Goods procured under this project would include office furniture, hardware and software, vehicles and surveying related tools and equipment. Similar goods will be procured as packages. For estimated contract values o f US$lOO,OOO or more National Competitive Bidding (NCB) would be used, using the Bank’s Standard Bidding Documents (SBD) modified for NCB. Shopping procedures would be used for estimated contract values o f less than US$lOO,OOO in accordance with para. 3.5 o f Bank Guidelines. Goods costing less than US$5,000 would be procured through Direct Contracting, in accordance with para. 3.6 o f Bank Guidelines.

Procurement of non-consulting services (US$l. 49 million): Non-consulting services such as pilot land surveying, training, community awareness campaigns and automatioddigitization services with estimated contract values above US$50,00Q would be procured through NCB non-consulting services costing less than US$50,000 would be procured through Shopping procedures, in accordance with para. 3.5 o f Bank Guidelines.

Selection of Consultants (US2.43 million): Consultant services procured under this project would include about 12 consulting services contracts, including studies related to land policy formulation, technical assistance for institutional restructuring o f the PLA, education and public awareness programs. Qualified NGOs operating in the WBG as well as legally and financially autonomous local universities would be eligible to participate in the selection processes for these contracts, and project contracted staff comprising the PMT. The selection for consulting contracts estimated to cost more than US$200,000 would be carried out using the Quality-and-Cost-Based Selection Method (QCBS). The selection o f f i rms for consulting services estimated to cost less than US$200,000 would be carried out using the Consultants’ Qualifications Selection Method (CQS), in accordance with para. 3.7 o f Bank Consultant Guidelines. The selection o f individuals for consulting services estimated to cost less than US$200,000 would be carried out in accordance with Section V (Selection o f Individual Consultants) o f Bank Consultant Guidelines. Invitations for Expressions o f Interest would be advertised in United Nations Development Business (UNDB) and DgMarket for al l consulting contracts with an estimated contract value above US$200,000.

40

Incremental Operating Expenditure (US$O. 44 million): The grant will finance expenditures directly related to the management o f the project such as: the te rm “Incremental Operating Costs” means costs incurred by MOP and PLA under the Project on account of: (i) maintenance o f office equipment; (ii) transportation and travel, including per diem allowances for Project staff in local and/or international travel status; (iii) rental o f office space; (iv) office supplies, ut i l i t ies and office administration, including translation, printing and advertising costs; (v) vehicles maintenance and insurance, including fuel costs; (vi) communication costs; (vii) costs for production o f bidding documents; and (viii) commercial bank charges. Incremental operating expenditures which would be eligible for financing would be procured using the administrative procedures o f the P A which have been examined and found to be satisfactory to the Bank.

B.

Procurement activities related to Component 1 o f the project will be carried out by MOP through i t s PMT. Procurement activities related to Components 2, 3 and 4 will be carried out by the P L A through i t s PMT. The PMT-MOP and PMT-PLA consist of the overall PMT, which i s headed by the PMT-MOP Team Leader designated Project Manager and includes the PMT-PLA Team Leader. The P M T would include, in addition to other staff, one procurement officer at PMT-MOP and one procurement officer at PMT-PLA. The PMT-PLA wi l l be working closely with staff o f the Registration, Surveying and State Land Management Departments.

Assessment of the agency’s capacity to implement procurement

For M O P and PLA’s respective components, each will prepare bidding documents, conduct public bid openings evaluate bids, and award contracts as well as supervise the implementation o f the signed contracts .

The P L A has the headquarter office in Gaza and other branch offices in the West Bank. The PLA has been established recently, and i t s staff came fi-om the MOHPW as well as from the MOJ. The headquarter office in Gaza has 139 employees and 9 departments while there are 140 employees in the West Bank offices and 14 departments. The Procurement Department has 3 staff in Gaza office and 3 staff in the West Bank in Ramallah. The PLA staff has no previous experience in implementing Bank-financed procurement or in international procurement. Very little procurement work i s conducted by the PLA. For recurrent items such as stationary, office supplies, furniture etc., the P L A uses the Government catalogue which i s prepared by MOF. The total annual procurement activities at P L A do not exceed US$lO,OOO and are mainly for purchasing spare parts for office equipment and instruments,. For amounts above US$lO,OOO, the Central Tender Committee at the MOF conducts the procurement process on behalf o f PLA. The Director o f the procurement department has good general knowledge o f the Governmental procurement procedures but has no knowledge o f Bank procedures and guidelines.

The Ministry of Planning and International Cooperation was split recently into two ministries, the MOP and the Ministry o f Foreign Affairs. The MOP has its headquarters office in the West Bank and an office in Gaza. The MOP has no procurement department but rather a purchase officer reporting to the Financial Department. Very l i t t le procurement work i s conducted by MOP. For recurrent items such as stationary, office supplies, furniture etc., the MOP, l ike other P A ministr ies and institutions, uses the Government catalogue prepared by MOF. Only shopping with an annual amount o f about US$50,000 i s carried-out by MOP staff. The Director o f the Finance and Administration Department has good general knowledge o f the Governmental procurement procedures but has no knowledge o f Bank procedures and guidelines. He has some experience in the selection o f individual consultants since the M O P hires a number o f individual consultants to support their daily activities. Although the M O P has no procurement department, procurement i s generally taken seriously and i s followed fi-om preparation to evaluation by committees formed for each procurement. The committee involves the heads o f the Financial and Administration units. The unit in need o f the procurement prepares the request and technical specifications, and the

41

purchase officer coordinates the operations and requests quotations from suppliers, h is role i s more o f a coordinating nature. A Manual i s being prepared by the Finance and Administration Department and i s in i t s final stage. The Manual describes exact steps and responsibilities in the procurement process starting from the requesting o f items by the ordering unit and ending in the delivery o f the supplies in the unit passing through the store.

Most of the procurement for this project are consultancy services which are not addressed in the two main procurement laws (the supply law and the works law, see the CPAR) and regulations and neither M O P nor has experience in working with the World Bank Consultant Guidelines. Most o f the issues and risks concerning the procurement component for implementation o f the project have been identified in the assessment of PLA and MOP and include: (i) weak procurement knowledge staff at P L A and M O P in use of Bank procurement guidelines; (ii) international consultants may not show interest in working in Gaza or in the West Bank under present security conditions; and (iii) delays in implementing the procurement plan due to lack o f experience in procurement planning and the volatile security conditions in the West Bank and Gaza. The corrective measures which have been agreed upon are: (i) an externally recruited procurement specialist/ consultant to work with and provide on-the-job training for two procurement officers (one for the P L A and one for MOP) who would be hired to be part o f each PMT; (ii) a general procurement training workshop i s planned in June/July 2005 for the P A staff (including MOP and PLA procurement staff) as part o f a recently approved IDF grant to follow up on the key recommendations o f the CPAR; (iii) on the job training in using Bank guidelines, preparation o f bidding document, request for proposals and bid evaluation and proposal evaluation would be provided by the externally recruited procurement specialist/ consultant and initiated at the Project Launch Workshop soon after effectiveness; The overall project r i sk for procurement i s considered high. Once P L A and MOP gain experience in implementing procurement, this risk may be mitigated and revised during supervision missions. However, in the f i rst few months o f implementation the procurement specialist/ consultant would be expected to lead the procurement activities at MOP and PLA, in order to assure progress and capacity building in procurement. The f i rs t country procurement assessment review (CPAR) for the WBG has been completed and it i s planned to be submitted to the government in December 2004.

C. Procurement Plan

A draft Procurement Plan covering the f irst 18 months i s included in Annex 6B. The Procurement Plan for project implementation provides the basis for the application o f the required procurement methods, as agreed between the Recipient and the Bank. This plan would be finalized during appraisal and made available to the MOP and PLA. I t will be available in the project’s database and on the Bank’s external website once the grant agreement i s signed. The Procurement Plan will be updated in agreement with the Project Team as required but at least, prior to every supervision mission to reflect the actual project implementation needs and improvements in institutional capacity.

D. Frequency of Procurement Supervision

For the first year, the PMTs (PMT-MOP and PMT-PLA) would be monitored by Bank supervision missions every three months. Furthermore, since most o f the procurement during the f irst year will be subject to prior review and since Bank procurement staff are located in the f ield there would be frequent interactions between the PMTs and the Bank to verify progress.

42

ANNEX 6A

1.

2.

Procurement Plan

Procurement M e t h o d P r i o r Review Threshold Comments Shopping (Goods, Works)

N C B (Goods, Works, Non- >=US$lOO,OOO All NCB contracts subject consulting: services) to mior review

First three purchase orderslcontracts

I GENERAL

1. Pro ject In format ion: Country: West Bank and Gaza Recipient:

Project No.: PO80892 Grant Amount: US$3,000,000 Project Implementing Agency (PIA):

The PLO for the benefit o f the Palestinian Authority Project Name: GZ-LAND A D M I N I S T R A T I O N LIL

The Ministry o f Planning and the Palestinian Land Authority

2. 3. 4.

Bank’s Approva l Da te o f t he Procurement Plan: December 2004 Da te o f General Procurement Notice: to be published within 30 days after Grant approval Pe r iod covered by this procurement plan: f i rst 18 months

11. G O O D S AND WORKS AND N O N - C O N S U L T I N G SERVICES.

1. P r i o r Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement:

2. Reference to (if any) Pro ject OperationaUProcurement Manual

The P M T would prepare a simple Project Operation Manual within 30 days after Grant approval.

3. Any Other Special Procurement Arrangements

In view o f procurement capacity deficiencies in both PMTs, outside expertise through a procurement specialist/ consultant, to be financed by the Grant, would be required to assure that the activities shown in the Procurement Plan can commence and be carried out successfully in the first year.

43

4. Procurement Packages with Methods and Time Schedule

1.

2.

3.

4.

See first in i t ia l draft procurement plan

Selection Method Prior Review Threshold Comments QCBS All Including advertisements

CQ >US$IOO,OOO and first three Including short l i s t s contracts

Individual Consultants, Section >US$50,000 and f i rst three Including short l is ts V o f Bank Guidelines contracts Single Source (individual) All Justification required

and short lists

111. SELECTION OF CONSULTANTS

Estimated cost

1. Appendix 1 to the Guidelines Selection and Employment o f Consultants:

Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in

Estimated Start. Duration Date

Training on procurement

2. Short l i s t comprising entirely o f national consultants:

June/ separate IDF grant addressing week July 2005 key recommendation o f the 75,000

CPAR

A short l i s t o f consultants for services, estimated to cost less than US$50,000 equivalent per contract, may be comprised entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.

3. Any Other Special Selection Arrangements:

In v iew o f procurement capacity deficiencies in bo th PMTs, outside expertise through a procurement specialist/ consultant, to b e financed by the Grant, wou ld b e required to assure that the activities shown in the Procurement Plan can commence and be carried out successfully in the f i rs t year.

4. See first init ial draft procurement plan.

Consultancy Assignments with Selection Methods and T ime Schedule

IV. SCHEDULE

IMPLEMENTING AGENCY CAPACITY BUILDING ACTIVITIES WITH TIME

The agreed Capacity Building Activit ies are listed with t ime schedule I I I I I I

Expected outcome I Activity Description

Comments

I I I I

I I t will be conducted under a I

44

m m ? Q 2 2

s . m

m 3 00 .

-I* N

8

--t----

3;/s 5

ANNEX 7: PROJECT IMPLEMENTATION PLAN

Donor Coordination

Forum


t - Minister o f Planning

Annex 7.1 Proposed Management Structure

Implementation of Component 1

. -...... I I Landdispute sp. ;

.................................................................. . . : . . . ........................................................................ i i :

Procurement sp. - - ; I_.

,!

............................................................................................................. ...............................................................................................................

(PMT-MOP)

Center and Planning Technical

Project Manager

! ” ....................................................................... : : : . . . . I I Prop valuation sp. 1 j i : : ........................................................................

..................................................................................... I International/national j Gaza Coordinator

Admin assistant

consultants I Policy / Strategic / Planning specialist GIS Specialist

i I : ” ....................................................................... . . . . 1 . . j : .i Land registration sp. !+I ....................................................................... : : I I

--, ....................................................................... FM sp. . . . . . . . * : : . ! I Landmarket sp. j j i : ........................................................................ :

...................................................................... I I

i : .................................................... ................ i i .................................................................................... 47 i :

LPTF MOP, PLA,

MOF, MOLG, MOJ, MOA,

MOPW, MNE, MOT, private sector, c iv i l

society

Financial & Administration

Dept.

Donor Coordination

Forum

- - - - - - - - - - I 1 L _ _ _ _ _ _ _ _ - _ _

Geographic Center & TS ' 1 Directorate

Procurement Spec.

FM Spec.

Annex 7.2 Proposed Management Structure

Implementation of Components 2,3 and 4

I Cabinet I I

PLA Chairman (Gaza based) 11 LPTF

I I

................................................................................................ ..................................................................................................... 1 I

Senior PLA Official (designated by PLA chairman)

I Land Registration Dept I f , -1 (PMT-PLA)

I

Accounting & ~ PLA Team Leader I PurchasesDepts I , I

Admin assistant

t Systematic Land Registration Spec.

Social Development Specialist

MOLG, MOJ, MOA, MOPW, MNE, MOT, private sector, c iv i l society

48

Annex 7.3 Proposed Project Management and Coordination Committee (PMCC)

I 1 I 1 I 1 II II I 1 I1 I1 I1 II II 11 I 1 11

II II I 1 I 1 I 1 I 1 11 I 1 I 1

II+----)

I1 I1 I 1 I 1 I 1 I 1

JI

r , = = = = = = = - = = = = = = = = = = = - - - - - ' - - - 1 - 1 1 1 - - 1 - 1 - = = = = = = = = = =

ii Project Management & Coordination Committee I 1

11 I 1 (PMCC)

MOP (chair)

Senior MOP Official Minister / Chairman /

Senior PLA Official Coordination

............................................................................................................................................................................................. Forum . . .

Land Policy Task Force

(LPTF) MOP (Chair), PLA, MOF,

MOLG, MOJ, MPWH, MNE, private sector, civi l society

I I .. :

I 1 11 j j Project Management Team (PMT) I1 i

II i Project Manager II ; I1 i ............................................................................................................................................................................................ .. l l - - - - - - - - - - - - - - - - - - - - - - - - , - - - - - - - - - - - - _ _ - - - - - - - - - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49

Annex 7.4 Project Implementation Responsibility Matrix

COMPONENT

Land Policv Formulation & Developmen of Regulatoty Framework

(i) Preparation o f Letter o f Land Policy Strategy

(ii) Preparation o f TORiRFP and selection of consultants/consulting firms for the proposed studies

(iii) Carrying out participatory workshops to review policy recommendations

(iv) Submission o f draft policies to Cabinet for review and consideration

(v) Ratification proposed policy and action plan

Piloting of Systematic Land Registration andModern Land Office

(i) Selection o f p i lot areas for land survey, systematic titling and registration

(ii) Selection o f P L A offices to be modemized

(iii) Leasing new premises to consolidate the 3 key P L A departments

(iv) Preparation o f tender documents for office partitioning works and goods (hardware and software, surveyng tools and equipment, etc.), bids evaluation and contract award

(v) Carrying out a social assessment by PLA-PMT member

(vi) Contract Implementation (vii) Preparation o f tender documents for

p i lot land survey, bid evaluation and contract award

(viii) Implementation o f land survey in pi lot areas

(ix) Establishment o f land settlement courts and appointment o f judges

(x) Overseeing contracts implementation Piloting of Public Land Znventoty and Management Strategy (i) Preparation o f tender documents for

goods (Hardware/software, satellite images, aerial photos, maps, etc.), bids evaluation and contracts award

(ii) Contracts Implementation (iii) Establishment o f inventory o f public

land in areas A&B, two municipalities Znstitutional Development (i) Preparation o f T O W P and selection

o f consultants/consulting firms for institutional assessment

(ii) Contract implementation

RESPONSIBILITY

CABINET

A

E

A

TASK FORCE

R

R

S

MOF

A

MOP (PMT)

E

E

E

E

S

PLA (PMT)

E

E

E

E

E

E

E

E

E

E

MOJI HJC

E

PRIVATE SECTOR

E

E

E

E

NGOs

50

COMPONENT

(iii) Preparation o f TOR/RFP and selection o f consultantdconsulting f i r m s for strengthening land administration and surveying education programs

(iv) Contract Implementation (v) Preparation of TOIURFP and selection

o f consultantskonsulting f i rms for strengthening private sector capacity in surveying

(vi) Contract Implementation (vii) Preparation o f TOR/RFP and

selection o f consultants/consulting f i r m s for desigdimplementation of awareness/community participation campaigns

(viii) Contract Implementation (ix) Oversee Contracts Implementation (x) project management support:

1. Performance monitoring 2. Evaluation 3. Distillation of the lessons leamt 4. Accounting & Fin. Admin. 5 . Opening of Special Accounts 6 . Management o f Special Accounts 7. Preparation o f Withdrawal

Applications 8. Preparation o f FMR 9. Consolidation of FMRs and submittal

of Project Quarterly Reports Key: Approve (A), Execute (E), Supporl * Implementation by Universities or Inst

RESPONSIBILITY

NGOs

E

51

N v,

ANNEX 8: PROJECT PROCESSING SCHEDULE


Project Schedule: ~

Activity Planned Date Actual Date Identification Mission April - May, 2004 April - May, 2004

PCN Review

Project Pre-Appraisal

June 25,2004 June 25,2004

July 7, 2004 July 15,2004

I Project Decision Meeting I November7,2004 I November 18,2004 I Project Appraisal

Project Negotiations

November 15,2004 November 20,2004

December 15,2004 December 22,2004

~o RVP

Planned date o f mid-term review

I January 26,2005

February 28,2006

I Planned date o f effectiveness I

Planned closing date

February 15,2005

December 3 1,2007

55

ANNEX 9: DOCUMENTS IN PROJECT FILE


1. Land Policy For Growth & Poverty Reduction: A Preliminary Identification o f Issues (In Land Registration and Land Management) - Executive Summary

2. Assistance Strategy for the West Bank and Gaza presented to the World Bank Board on December 2nd, 2003

3. Aide Memoire from the pre-appraisal mission (July 15 - 30, 2004) a. Draft Project’s components b. Draft Project’s implementation arrangement c. L i s t o f Proposed Studies which will be financed by the LIL d. Minutes o f Stakeholder Workshop held in Ramallah on July 22,2004 e. Finnish Experience: Strengthening the Land Management System in the Palestinian

Authority territories with a view to Facilitating Access to Housing (1998-2000) f. Draft Statement on Land Policy

4. Report on Palestinian Land Authority by Atef Khudari, Director General o f P L A (Un-Official Translation)

5. PLA’s official request for Bank’s assistance from Freih Abu Middien, Chairman o f P L A 6. Official correspondence from the Finnish Govemment to co-finance the Land Administration LIL 7. Terms o f Reference for the proposed long te rm advisor on Systematic Land Registration financed

by the Government o f Finland 8. IDRC’s financed Building a Comprehensive GIS for Land Ownership Classification in the West

Bank 9. Consultants’ Scope o f Work related to the Land Administration Project financed by USAID 10. P A Cabinet decision endorsing the proposed Statement on Land Policy and establishing the Land

Policy Task Force, December 4,2004 1 1. Statement on Land Policy (in Arabic) 12. Memorandum of Understanding between the Ministry o f Planning and the Palestinian Land

Authority (in Arabic)

56

ANNEX 10: STATEMENT ON LAND POLICY'


As part o f i t s efforts aimed at achieving the national goals o f economic development, poverty reduction and good governance as described in the Socioeconomic Development Plan and Medium Term Development Plan, the Palestinian National Authority i s endeavoring to put in place an efficient and transparent system o f land administration, based on and supported by a policy framework developed through participatory processes, a consolidated and coherent legal framework and appropriate institutional arrangements, and accompanied by a series o f programs and projects. The objectives o f these interlinked initiatives are:

a To improve land tenure security, facilitate the development o f efficient land and property markets in rural and urban areas and prevent or resolve land disputes through the development of an efficient system o f land titling and registration; To manage land and natural resources in an equitable, sustainable and efficient manner; and To promote transparent management o f public land.

a

a

To achieve these objectives, the government will endeavor to accomplish the following tasks:'

1. I n the area of land administration: a The land policy formulation process will be overseen by a high-level Land Policy Task Force

(LPTF) that will be chaired by a senior official from the Ministry o f Planning and which will comprise senior officials from key stakeholder ministries and agencies (including the Ministries of Local Government, Finance, National Economy, Public Works and Housing, Apcul ture, Justice, and the Palestinian Land Authority), as well as representatives from the c iv i l society organizations and the private sector. The mandate o f the LPTF i s to oversee the land policy formulation process, review policy recommendations, ensure the adoption and implementations of policies and recommendations, and take decisions to be forwarded to Cabinet for approval. Members o f the LPTF will be nominated by the task force chair. Revision and consolidation o f the legal framework goveming land administration in the West Bank and Gaza, and the enactment o f the Land Law, complementary laws, regulations and other related legislation; Reduce the backlog o f land dispute cases in the courts by 50% by instituting new alternative dispute resolution mechanisms, and providing training to judges and court personnel dealing with land cases. Decrease the cost o f surveying land by expanding the pool o f private surveyors to 150 in two years through training and support services;

a

a

a

A letter f rom the acting Minister of Planning, dated December 18, 2004, confirming the Cabinet's adoption o f the statement on land policy and the establishment o f the land pol icy task force i s available in the project files.

' Other associated initiatives include: (i) Development o f land use plans for priority areas including tourism, investment zones, urban areas, major road corridors and other infrastructure; (ii) Coordination o f land use planning with natural resource management objectives in a harmonized legal framework; (iii) Strengthening o f local land management and planning authorities, and o f national supervisory structures; (iv) Development o f procedures for urban land management and involuntary resettlement. These initiatives are critical complements to land pol icy and w i l l be closely coordinated in parallel wi th the land administration and public land management initiatives.

57

0 Reduce the average registration time o f sale transactions in previously registered lands by 50% (from 7-8 to 2-3 days, if no Irrevocable Power o f Attomey was used); Activation o f a nationwide integrated land registration system using both sporadic and systematic registration procedures, including all property, public, private and Waqf.

0

2. In the area of public land management:

0

0

Creation and updating o f a nation-wide public land inventories and classification system; Establishment o f consolidated, transparent, and rules-based methods for allocating public land including sound criteria and procedures for its valuation; Development o f a strategy for leveraging public land to enable the achievement o f the development objectives o f economic growth promotion and poverty reduction.

0

Among the priorities for these two areas are institutional strengthening and capacity building in land policy formulation and implementation and in land dispute resolution as well as the improvement o f public awareness o f revised land legislation and o f the benefits o f registration.

In order to achieve these tasks, and based on the guidance which will be presented by the Cabinet committee, the Cabinet i s committed to embarking on a long-term program o f land administration reform that will begin with an initial phase to test approaches, put in place the policy framework and consolidate the legal framework for land administration, carry out pilot land registration, clarify institutional roles and identify financial and other requirements needed for the long-term program.

The task o f coordinating the government’s efforts in establishing coherent policy and legal frameworks for land administration and introducing changes to achieve efficient procedures for the issuance o f land t i t les and registration of property transactions, and transparent processes for the management and disposal o f public land has been delegated to the Ministry o f Planning. The Ministry o f Planning shall have the full backing and support of the Cabinet in undertaking this mandate, which will be undertaken in collaboration and coordination with all concemed ministries and authorities.

Finally, the land policy formulation process will be overseen by a high-level Land Policy Task Force that wil l be chaired by a senior official from the Ministry o f Planning and which will comprise senior officials from key stakeholder ministries and agencies (including the Ministries o f Local Government, Finance, National Economy, Public Works and Housing, Agriculture, and Justice, and the Palestinian Land Authority), as well as representatives from the civi l society organizations and the private sector. The mandate o f the Task Force i s to oversee the land policy formulation process, review policy recommendations, ensure the adoption and implementations o f policies and recommendations, and take decisions to be forwarded to Cabinet for approval. Members o f the Task Force will be nominated by the Task Force chair.

58

ANNEX 11 : MEMORANDUM OF UNDERSTANDING BETWEEN MOP AND PLA


9 Memorandum of Understanding

between the

Ministrv of Planning and The Palestinian Land Authoritv

In furtherance o f the proposed Land Administration Project, funded by the World Bank, the United States Agency for International Development and the Government o f Finland, the Ministry o f Planning (MOP) and the Palestinian Land Authority (PLA) hereby agree to the following:

1. Support the implementation o f this project through the Project Management Team (PMT). Both MOP and PLA agree to establish and support PMTs within their respective offices. These PMTs will be h o w n as the PMT-MOP and the PMT-PLA, and together will comprise the PMT.

2. The MOP will designate a Team Leader to head the PMT-MOP and to serve as Project Manager, chairing the overall PMT, and reports directly to a senior MOP official designated by the Minister o f Planning. The PMT-MOP, which will be placed as part o f the MOP’S Policy Research Unit, will be responsible for the implementation o f Project Component 1-the policy formulation process-and associated activities such as the public awareness campaign, and ensure coordination with the P L A on Component 3 (given the established capacity within the General Directorate o f the Geographic Center and Technical Support). The PMT-MOP will also liaise with and report on the progress o f the policymaking process to the Cabinet and the Palestinian Legislative Council (namely the Land, Economic and Legal subcommittees).

3. The PMT-PLA will be established within the PLA to implement Project Components 2 and 3, and sub-components (i), (ii), (iii) and (iv) o f Component 4. It will be headed by a Team Leader who works closely with and reports directly to a senior PLA official designated by the PLA Chairman. The PMT-PLA wil l also develop an action plan and a procurement plan for the implementation o f the different subcomponents, prepare Terms o f Reference (TORS) and bidding documents for the various tasks, oversee the contractual and implementation processes, and coordinate with MOP on Component 3 and where needed on Component 4. The PMT-PLA i s also expected to coordinate with the various stakeholders including the MOJ, Higher Judicial Council (HJC), MLG and relevant municipalities, local universities, NGOs and specialized private f i rms.

~~

A signed Memorandum of Understanding is available in Arabic version in the project file.

59

4. The MOP and P L A will provide coordination through the Project Management and Coordination Committee (PMCC), which will be comprised o f senior MOP and PLA officials designated respectively by the MOP and the PLA Chairman to oversee the implementation o f their entities’ assigned project components and the Team Leaders o f PMT-MOP and PMT-PLA. The PMCC will be chaired by MOP.

5. The establishment o f a high-level Land Policy Task Force (LPTF), which will be chaired by the senior M O P official and wil l comprise senior officials from key stakeholder ministries and agencies (including the Ministries of Local Government, Finance, Agriculture, Justice, Public Works and Housing, National Economy, and the Palestinian Land Authority), and one representative f iom each of the c iv i l society and private sector. The mandate o f the LPTF will be to review and endorse land policy recommendations to be forwarded to Cabinet for approval and oversee the policymaking process and the adoption o f i t s recommendations within their ministries.

6. Both the PMT-MOP and PMT-PLA will be responsible for preparing progress reports. The Project Manager in h i she r capacity as head o f the overall P M T will consolidate these reports and submit them to the Bank on quarterly basis. The PMT-MOP and PMT-PLA will carry out regular meetings with the World Bank’s team as well as the donor coordination group to review the progress reports and address the challenges facing implementation.

Signed on:

Ministry o f Planning Palestinian Land Authority

60