OFFICIAL USE ONLY IDA/R2012-0089/1 April 6, 2012 Streamlined Procedure For meeting of Board: Thursday, April 26, 2012 FROM: Vice President and Corporate Secretary West Bank and Gaza - Second Land Administration Project Project Appraisal Document Attached is the Project Appraisal Document regarding a proposed grant from the Trust Fund for Gaza and the West Bank to the Palestine Liberation Organization (for the Benefit of the Palestinian Authority) for the Second Land Administration Project in West Bank and Gaza (IDA/R2012-0089). This project will be taken up at a meeting of the Executive Directors on Thursday, April 26, 2012 under the Streamlined Procedure. Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Directors and Department Heads, Bank, IFC and MIGA This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. Document of The World Bank FOR OFFICIAL USE ONLY Report No: 66671-GZ PROJECT APPRAISAL DOCUMENT ON A PROPOSED TRUST FUND GRANT IN THE AMOUNT OF US$3 MILLION TO THE PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE PALESTINIAN AUTHORITY) FOR THE SECOND LAND ADMINISTRATION PROJECT (LAP-II) IN WEST BANK AND GAZA March 23, 2012 Sustainable Development Department Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 6, 2012) Currency Unit = ILS (New Israeli Sheqalim) ILS 1 = US$ 0.264 US$ 1 = ILS 3.795 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CLRS Computerized Land Registration System CORS Continuous Operation Reference System CQS Consultants Qualification Selection DA Designated Account HJC Higher Judicial Council IBRD International Bank for Reconstruction and Development HRD Human Resource Development IC Individual Consultant ICB International Competitive Bidding ICRR Implementation Completion and Results Report IDA International Development Association IPA Irrevocable Power of Attorney IFR Interim Unaudited Financial Report IT Information Technology LAP-I First Land Administration Project LAP-II Second Land Administration Project LIL Learning and Innovation Loan/Grant M&E Monitoring and Evaluation MFA Ministry of Foreign Affairs, Finland MOF Ministry of Finance MOPAD Ministry of Planning and Administrative Development NCB National Competitive Bidding NGO Non-Government Organization PA Palestinian Authority PLA Palestinian Land Authority PIM Project Implementation Manual PM Manual of Procurement Procedures PMU Project Management Unit PNDP Palestinian National Development Plan PP Procurement Plan QCBS Quality and Cost Based Selection SA Special Account SBD Standard Bidding Documents SFT Social Facilitation Team SIL Specific Investment Loan SLR Systematic Land Registration SOE Statement of Expenditure SSS Single Source Selection TAT Technical Assistance Team TF Trust Fund TFGWB Trust Fund for Gaza and West Bank TOR Terms of Reference WBG West Bank and Gaza VAT Value Added Tax Regional Vice President: Inger Andersen Country Director: Mariam J. Sherman Sector Director Junaid K. Ahmad Sector Manager: Franck Bousquet Task Team Leader: Soraya Goga Table of Contents I. Strategic Context .................................................................................................................. 1 A. Country Context ............................................................................................................... 1 B. Sectoral and Institutional Context .................................................................................... 1 C. Higher Level Objectives to which the Project Contributes .............................................. 3 II. Project Development Objectives.......................................................................................... 3 A. Project Development Objective (PDO) ............................................................................ 3 B. Project Beneficiaries ........................................................................................................ 3 C. PDO Level Results Indicators .......................................................................................... 3 III. Project Description............................................................................................................... 4 A. Project Components ......................................................................................................... 4 B. Project Financing.............................................................................................................. 5 C. Lessons Learned and Reflected in the Project Design ..................................................... 6 IV. Implementation .................................................................................................................... 7 A. Institutional and Implementation Arrangements .............................................................. 7 B. Results Monitoring and Evaluation .................................................................................. 8 C. Sustainability .................................................................................................................... 8 V. Key Risks and Mitigation Measures .................................................................................... 9 A. Risk Rating Summary ...................................................................................................... 9 B. Overall Risk Rating Explanation...................................................................................... 9 VI. Appraisal Summary ........................................................................................................... 10 A. Economic and Financial Analysis .................................................................................. 10 B. Technical ........................................................................................................................ 11 C. Financial Management ................................................................................................... 11 D. Procurement ................................................................................................................... 12 E. Social .............................................................................................................................. 13 F. Environment ................................................................................................................... 15 Annex 1: Results Framework....................................................................................................... 15 Annex 2: Project Description ....................................................................................................... 20 Annex 3: Implementation Arrangements ..................................................................................... 35 Annex 4: Operational Risk Assessment Framework (ORAF) ..................................................... 51 Annex 5: Implementation Support Plan....................................................................................... 55 Annex 6: Team Composition ....................................................................................................... 59 Annex 7: Social Issues and Safeguards ....................................................................................... 60 PAD DATA SHEET West Bank and Gaza Second Land Administration Project (LAP-II) (P105403) PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA MNSSD Basic Information Date: 23 March 2012 Sectors: Central government administration (68%), Law and justice (18%), Sub-national Country Director: Mariam J. Sherman government administration (14%) Themes: Land administration and management (33%), Sector Manager/Director: Franck Bousquet / Personal and property rights (33%), Legal Junaid K. Ahmad institutions for a market economy (17%), Administrative and civil service reform (17%) Project ID: P105403 EA Category: C - Not Required Lending Instrument: Specific Investment Loan Team Leader: Soraya Goga Joint IFC: No Borrower: Palestine Liberation Organization Responsible Agency: Palestinian Land Authority Contact: Nadim Barahmeh Title: Chairman Telephone No.: 2415572 Email: nbarahmeh@pla.org.ps Project Implementation Period: Start Date: 30-May-2012 End Date: 30-May-2017 Expected Effectiveness Date: 30-May-2012 Expected Closing Date: 30-May-2017 Project Financing Data(US$M) [ ] Loan [ ] Grant [X] Other [ ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 8.74 Total Bank Financing (US$M): 3.00 -i- Financing Source Amount (US$M) Borrower 0.00 Special Financing 3.00 Co-financing from Government of Finland 5.74 Total 8.74 Expected Disbursements for TFGWB (in US$ Million) Fiscal Year 2011 (PPA) 2012 2013 2014 2015 2016 2017 Annual 0.24 0.01 0.20 0.80 1.00 0.40 0.35 Cumulative 0.24 0.25 0.45 1.25 2.25 2.65 3.00 Project Development Objective The project development objective is to improve the design and implementation of the land registration system in the Project Area. Components Component Name Total Cost (USD Millions)1 Component 1: Systematic Land Registration in the Project Area 6.920 Component 2: Institutional Strengthening of the PLA 0.630 Component 3: Project Management, Monitoring and Evaluation 0.956 Compliance Policy Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X 1 The above allocation includes co-financing costs but excludes expenditures under the Project Preparation Advance (PPA) which were US$ 0.238 million. -ii- Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Subsidiary Agreement No Effectiveness Once Description of Covenant: The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement between the Recipient and the Palestinian Authority, under terms and conditions approved by the World Bank. Team Composition Bank Staff Name Title Specialization Unit Soraya Goga Senior Urban Development Specialist Team Leader MNSUR Nikolai Soubbotin Senior Counsel Legal LEGEM Tracy Hart Senior Environmental Specialist Environmental Issues MNSEN Nina Bhatt Senior Social Development Specialist Social Issues MNSSO Khalida Seif El-Din Al- Program Assistant Program Assistance MNC04 Qutob Gavin P. Adlington Lead Land Administration Specialist Land Administration ECSS3 Hana Salah Consultant Social Issues MNSSO Aissatou Diallo Senior Finance Officer Finance and Loans CTRLA Lina Abdallah Operations Officer Monitoring & Evaluation MNSUR Lina Fathallah Rajoub Procurement Specialist Procurement MNAPR Nadi Yosef Mashni Financial Management Specialist Financial Management MNAFM -iii- I. Strategic Context A. Country Context 1. Supported by international assistance, the Palestinian Authority (PA) has made remarkable efforts in building the institutions of a future Palestinian state. The Palestinian Reform and Development Plan (PRDP) 2008-2010, the programmatic plan of the PA titled “Ending the Occupation, Establishing the State� and the more recent Palestinian National Development Plan, 2011-2013 (PNDP), have provided the framework for an ambitious reform effort to build an institutional basis for statehood. The reforms have been successful on many fronts, and macroeconomic policy has shown some improvements. 2. Recent growth reflects an economy recovering from a low base, but heavily reliant on inflows of donor aid, and fiscally vulnerable. The relative stability in the West Bank since the Second Intifada, coupled with sound economic and fiscal policy, has facilitated high growth in recent years. However, growth is dependent on foreign financial support and on tax and customs clearance revenues from Israel (60-70 percent of its total revenue). This has led to fiscal vulnerability and unsustainable deficit levels. Growth prospects are also threatened by restrictions on the movement of people and goods. 3. Development is severely impacted by restrictions on access to land and natural resources. Land is scarce. The Oslo Accords of 1993-1995 partitioned the West Bank into areas A, B and C. In Area A, the PA has full civil and security control. In Area B, the PA has full civil control, while security is jointly controlled with Israel. In Area C, Israel has civil and military control. Area C surrounds areas A and B and areas A and B have increasing population densities with little space to expand. Therefore, in areas that the PA does control, land management practices require improvement to enable the scarce land to be utilized in a way that facilitates economic growth, and to allow for security of land ownership. B. Sectoral and Institutional Context 4. The PA has prioritized land management as part of its vision for the establishment of a State. The 2009 program stated its commitment to land registration and called for: (i) effective public service delivery of the Palestinian Land Authority (PLA) by computerizing land records, building up modern land offices and human resource capacity; (ii) protection and maximum utilization of public land by inventorying and registering it; (iii) developing clear policies on the use of public land; and (iv) protection of citizens‟ properties. The Palestinian National Development Plan (PNDP) builds on the PRDP by explicitly identifying completion of land registration and the upgrading of land management capacity as a priority policy. 5. As an outcome of the first Land Administration Project (LAP-I), the demand for improved governance in registration is gaining momentum. The project, implemented between 2005 and 2008 and co-financed by the Bank and the Government of Finland, aimed at strengthening the capacity of the PA in land management, channelling inputs via the PLA and the Ministry of Planning, and assessing the feasibility of reforms within an emerging government structure. LAP-I developed procedures for the issuance of land titles and registration of property transactions, and piloted systematic registration and modernized land offices. It also generated policies for the management of West Bank and Gaza‟s scarce land resources. -1- 6. Effort has been dedicated to developing a new legal framework for land, but old frameworks remain. Systematic Land Registration (SLR) is carried out under the Land and Water Settlement Law (No. 40 of 1952) which became applicable to the West Bank under the Jordanian Administration rule (1950-1967)2. Under LAP-I, land policies and draft laws for land administration and management were prepared. Only the PLA Law has been passed as the Palestinian Legislative Council has not been in session since June 2007 and laws are signed only as a matter of priority. While reforms of the Land Laws are needed, the current framework is sufficient for the proposed project. Through restricting the use of the Irrevocable Power of Attorney (IPA), in June, 2009, the PA took a key step in reducing informal land transactions. 7. Significant institutional challenges remain. The PLA was established in 2002 and is governed by the PLA Law 6 of 2010. The law also created the National Land Council, headed by the President, to approve PLA land policies and programs. Thus far, the Council has not convened. Furthermore, the PLA has limited staff capacity, and a limited budget to invest in essential surveying and information technology equipment, as well as capacity development. Nevertheless, since the pilot experiences of LAP-I, the PLA has taken steps to expand systematic registration, notably in Bethlehem, Beit Jala, Beit Sahour and Doha since 2009, and in Salfeet since 2010, and has modernized two regional offices. 8. The PLA has struggled to develop feasible operational strategies and methods to register all area A and B land of the West Bank within a pre-stipulated timeframe and budget. The PLA has translated operational lessons through revisions to its “Settlement Manual� (SM). However, there is opportunity to enhance operational efficiencies. There are about 3.5 million dunums3, (3,500 square kilometers) to be systematically surveyed and registered in the West Bank. Under the PLA‟s current operations, systematic registration is costly, ranging between US$150 to US$200 per parcel, and at the current rate of progress, completion will take extremely long. By contrast, systematic registration with simple survey methods has worked well in other emerging countries4 leading to complete national coverage in less than ten years and a reduction in costs to less than US$10 per parcel in some cases, but rarely more than US$40 per parcel. 9. The main challenges for the PLA are: (i) management capacities and work methods restrict efficient operations; (ii) the role and usefulness of the private sector has not yet been demonstrated; (iii) cost efficiency of surveying could be improved; (iv) disincentives to registering land include lengthy delays, underdeveloped property valuation methods and negative perceptions surrounding fairness of valuation; and (v) the high number of absentee owners, due to displacement, delays the process of SLR. 10. Despite these challenges, improving and strengthening land administration is imperative. The project will assist the PA in strengthening a land administration authority that 2 Sporadic first registration, at the initiative of the owner, is provided for in another law, the Registration of Unregistered Immovable Property (Law No. 6 of 1964). Subsequent registrations are provided for by the Law on Transfer of Immoveable Property (No. 49 of 1953). The Amended Law on Immoveable Property (No. 51 of 1958, as amended by Law No. 98 of 1966), which attempts to remove or minimize some of the clouds on titles created by priorities, preemptive rights, inheritance laws, and powers of attorney is also relevant. There are provisions for registration of condominium titles in the Law on Ownership of Apartments, Shops and Floors (Law No. 1 of 1996). 3 3.5 million dunums is about 1.5 million parcels, based on experience under LAPI. Ten dunum equals one hectare 4 Eg., in Georgia, Armenia, Kyrgyzstan, and Estonia. -2- has the strategic and operational tools to ensure efficient and transparent land registration operations. A functioning formal registry will strengthen the PA‟s state building efforts, strengthen the private sector, and provide the basis for revenue collection. 11. The involvement of the Bank and the Government of Finland derives from the long- standing engagement with the PA to improve land administration. LAP-I, which was a Learning and Innovation grant (LIL), highlighted the role of the financing partners to generate improvements in the process of land administration. The Bank brings worldwide experience through its land administration project portfolio which currently stands at over US$1 billion. The Government of Finland has supported Palestinian land capacities since 1997, starting with a bilateral project in Gaza, and remains the main bilateral donor in the Palestinian land sector. C. Higher Level Objectives to which the Project Contributes 12. The project supports the goals of the PNDP. Under its governance strategy, the PNDP sets as a goal to “Complete the process of land registration and upgrade land management capacity�. The project is instrumental in reaching this goal. 13. The project is aligned with the Bank‟s Interim Strategy Note (2012-2014) for West Bank and Gaza which seeks to strengthen institutions through reinforced public administration. The project also articulates with Finland's bilateral development cooperation goal in the Palestinian territory, which is to support the peace process by building the capacity and institutions. II. Project Development Objectives A. Project Development Objective (PDO) 14. The PDO is to improve the design and implementation of the land registration system in the Project Area. The Project Area is defined as municipalities, villages and project committees in the Dura district and in an adjacent area of not less than 180,000 dunums. B. Project Beneficiaries 15. Project beneficiaries would include: (i) owners, including women, in the Project Area targeted for systematic land registration (Dura and an adjacent area, representing an estimated 80,000 owners5); (ii) the public using the services of the regional offices targeted for improved service delivery (Nablus, Jenin and two other PLA regional offices); (iii) businesses, lawyers and other private sector interests requiring access to land registration information in the Project Area targeted for systematic land registration and in regional offices targeted for improved service delivery areas; and (iv) PA institutions, including municipalities and the Ministry of Finance, who would benefit from the fiscal impacts of registration. C. PDO Level Results Indicators 16. The achievement of the PDO will be measured using the following indicators: (i) increase in customer satisfaction with the services provided by the PLA in the Project Area6; (ii) decrease in time required for land transaction processing in at least four PLA offices; and (iii) at least 60% reduction in the costs of SLR activities in the Project Area by end of Project. 5 This is an estimate from LAPI figures. Conditions may be different in the Dura area. 6 Social satisfaction surveys in SLR areas and customer satisfaction surveys in up to four PLA offices. -3- III. Project Description A. Project Components 17. The proposed project would have three components: (i) Component 1: Systematic Land Registration in the Project Area; (ii) Component 2: Institutional Strengthening of the PLA; and (iii) Component 3: Project Management, Monitoring and Evaluation. 18. A Project Preparation Advance of US$0.35 million was made available to the PA of which US$0.238 million was utilized and the remainder was cancelled. The project is financed by the Trust Fund for Gaza and West Bank (TFGWB), and co-financed by the Government of Finland through a World Bank administered Trust Fund (co-financed TF). The Government of Finland will also provide parallel financing primarily for the services of an international technical assistance team for the PLA. 19. Component 1: Systematic Land Registration in the Project Area (US$6.920 million, of which US$2.405 million financed by TFGWB, and US$4.515 million is co-financed): This component will provide resources to the PLA to complete Systematic Land Registration (SLR) of at least 180,000 dunums of land in the West Bank to be implemented in two phases, and to develop their capacity to further implement SLR in the rest of the West Bank. Phase 1 would register 90,000 dunums of land in the Dura district over 24 months. Phase 2 would extend the systematic land registration process to at least an additional 90,000 dunums of land in an area most likely in the southern West Bank. The possibility of including an area greater than 90,000 dunums will be reviewed towards the end of Phase 1, depending on the work progress of the SLR process. The procedures refined through the implementation of this component could then be institutionalized within the PLA for implementation across the West Bank7. 20. The TFGWB will finance non-consulting services, software and equipment for land demarcation, adjudication, surveying and registration, provision of materials and consultants‟ services for the related public awareness campaign and financing of PLA Operating Costs for systematic land registration. The TFGWB will also finance furniture and office equipment for the PLA field office in Dura. 21. The co-financing TF will finance non-consulting services, software and equipment for land demarcation, adjudication, surveying and registration, provision of materials and consultants‟ services for the related public awareness campaign and financing of PLA Operating Costs for systematic land registration. The technical assistance team financed in parallel by the Government of Finland will also provide technical assistance for this component. 22. Component 2: Institutional Strengthening of the PLA (US$0.630 million of which US$0.280 million financed by TFGWB and US$0.350 million co-financed): This component will assist the PLA in implementing its mandate and, in particular, managing systematic land registration through institutional strengthening including provision of enabling technology and office modernization. 7 Procedures for systematic land registration were developed under LAPI and are documented in the Settlement Manual. However, work organization and methodology in implementing the procedures would be improved. -4- 23. Sub-Component 2.1: Institutional Strengthening of the PLA will assist the PLA in: (i) conducting an institutional needs assessment; (ii) formulating a corporate strategy and subsequent annual business plans; (iii) establishing a monitoring system at the PLA (PLA Monitoring System); (iv) improving service standards through reorganization of work processes and training; (v) improving its public relations and outreach; (vi) formulating a Human Resources Development (HRD) strategy; and (vii) provision of subsequent required training. 24. It will also assist the PLA in implementation of enabling technologies including assisting the PLA in the (i) preparation of an IT Strategy; (ii) development of software to extend the Computerized Land Registration System (CLRS); (iii) extension of the CLRS to four regional offices (Nablus, Jenin, and two other PLA regional offices); (iv) improvement of the land registration process; (v) a feasibility study for a Continuous Operation Reference System (CORS); and (vi) upgrading survey equipment for the PLA Surveying Department. The TFGWB will finance IT equipment, servers, software and office equipment for this component. Technical assistance for this sub-component will be provided by the technical assistance financed in parallel. 25. Sub-Component 2.2: The modernization of PLA Offices would support the design, works, equipment, installation of systems, and improvement of the work process in two PLA regional offices. The TFGWB would finance civil works, furniture and equipment for this sub- component. The co-financing TF will finance interior design, civil works for the modernization of two regional offices and record storage cabinets for the two regional offices. 26. Component 3: Project Management, Monitoring and Evaluation (US$ 0.9568million of which US$ 0.077 million from TFGWB and US$ 0.879 million co-financed) supports: (i) consultants for the Project Management Unit (PMU); (ii) incremental operating costs for the PMU; (iii) project monitoring and evaluation. The TFGWB will finance consultants‟ services, including audit and training, and financing of PMU Operating Costs. The co-financing TF will finance consultants services, including training, and the financing of the PMU Operating Costs. B. Project Financing 27. Lending Instrument: A Specific Investment Loan (SIL) is to be used as it is better suited to building effective land administration systems, as shown in similar Bank-financed projects. 28. Sources of Financing: The SIL will be co-financed by the Government of Finland through a World Bank administered trust fund. The co-financing amount is Euro 4.1 million (estimated at US$ 5.744 million). In addition, the Government of Finland will also provide parallel financing of up to Euro 4.2 million (estimated US$ 5.8 million) through the hiring, by its Ministry of Foreign Affairs, of a consulting firm to provide technical assistance to the PLA. Consequently, the total Finnish contribution amounts to Euro 8.3 million, of which Euro 4.1 million is co-financed through the World Bank administrated Trust Fund and of which a maximum of Euro 4.2 million is available for the hiring of the Technical Assistance Consulting Firm. 8 This represents 8% of total amount of financing available for the project including the TFGWB, co-financing and parallel financing amounts. (See Table 1). -5- Table 1: Project Cost and Financing (US$ million)9 CO- CO- COMPONENT COST TFGWB TFGWB % FINANCE FINANCE % Component 1: SLR in the Project Area 6.920 2.405 35 4.515 65 Component 2: Institutional 0.630 0.280 45 0.350 55 Strengthening of PLA Component 3: Project Management, 0.956 0.077 7 0.879 93 Monitoring and Evaluation PPA Expenditures 0.238 0.238 100 0 0 Total project costs financed by the 8.744 3.00 35 5.744 65 TFGWB & co-financing Parallel Financing from Finland 5.800 C. Lessons Learned and Reflected in the Project Design 29. The project design builds on lessons learned from the Implementation Completion and Results Report (ICRR) of LAP-I. These include: (i) the project focuses only on those activities within PLA control, thus simplifying the design; (ii) the project avoids components requiring substantial legislative change, and excludes activities that are outside of the PLA mandate; (iii) the performance indicators include the amount of land registered and not the number of titles issued, thus reflecting the ICRR lesson that owners regard registration as sufficient security of tenure. Also, the request for a title (i.e., the legal document) by owners appears to occur primarily where there is a transaction (e.g., the sale or mortgage of a property); (iv) this legal document also emphasizes the development of a sound dispute resolution and adjudication system; and (v) it ensures the integration of village, neighborhood and municipal councils into the dispute resolution process. 30. Project Management and PLA Capacity: To mitigate the risk of inadequate human resource capacities as outlined in the ICRR, the PLA will hire consultants for the PMU (apart from the Project Director and the Finance Officer who will be PLA staff), approximately 52 individuals to undertake demarcation, surveying and adjudication10, as well as additional private sector surveying firms to undertake the systematic land registration process. The PMU will also be assisted by the parallel-financed international technical assistance team. (see Annex 2 for details). Key PMU positions, including the Project Director and the Finance Officer who are PLA staff, have been filled (see Annex 3 for details). 31. Commitment of the PLA and PA to the Land Registration Process. The PA, through the PLA, is undertaking systematic land registration, based on the procedures piloted under LAP-I, in Bethlehem, Beit Sahour, Beit Jala and Doha, within the Bethlehem Governorate in the West Bank, through their own funds and thus demonstrating their commitment. 32. Commitment of the PLA to apply IT to the land registration process. The IT Assessment established that: (i) an IT department has been established; (ii) a Computerized Land 9 Indicative project budget based on the euro-dollar exchange rate for the co-financing of approximately 1.3 on November 30, 2011. 10 Note that they are required for carrying out the „one off‟ process of SLR in the area. Best practice determines that they should not be hired by the PLA as permanent staff members. -6- Registration System (CLRS) has been developed and introduced in the Ramallah Registration Department with no external assistance; (iii) a number of other software applications, e.g., a simple HR software application and a revenue (recording) software application, have been developed; and (iv) Jenin and Nablus Regional Offices are connected to the Ramallah PLA office. The Project, through parallel-financed international technical assistance, will further develop the application of IT to the land registration process. 33. Ensuring the Adequacy of the Framework for SLR. The ICRR recommended a follow-up project, provided that regulations and instructions are in place and only if there is sufficient capacity within the PLA to monitor and evaluate surveying activities. The current legal framework is adequate to undertake the project. A Settlement Manual (SM), which was developed under LAP-I and officially approved in June 2009, provides guidance when the law is unclear and is supplemented by procedures outlined in the Project Implementation (PIM) procedures11. The parallel-financed technical assistance will support the PLA in developing an organization-wide Monitoring and Evaluation System for the PLA. 34. Bank Team Skills. The Bank‟s team includes experienced land administration professionals with a strong background in surveying and land registration, public sector administration and international development, as recommended by the ICRR. This team will be further strengthened by relevant professionals supported by the Government of Finland. IV. Implementation A. Institutional and Implementation Arrangements 35. Institutions for Implementation: The project will be implemented in its entirety by the PLA, through a Project Management Unit, headed by a Project Director. The PMU12 would include staff of the PLA (including the Project Director and the Finance Officer) and individual consultants (including a Procurement Officer, IT Specialists, and Public Awareness/Social Specialists) and would be assisted by a parallel-financed International Technical Assistance Team (TAT). The PMU would act as the main coordinating and executive body of the project responsible for the fulfillment of all technical, fiduciary, procurement, project monitoring and evaluation, and safeguards activities. In addition, the PMU will be supported by a Technical Support Team consisting of PLA staff to provide support and guidance in managing project implementation. These arrangements will mitigate the capacity risk of the PLA in managing the work to meet project targets and will also address risks associated with the PLA‟s management of financial and procurement processes during project implementation. 36. A Project Steering Committee, consisting of the PLA, the Ministry of Finance, and the Ministry of Planning and Administrative Development, will be established as a monitoring and strategic decision-making body for the project (including the TFGWB, co-financing TF and parallel financing activities) and will convene at the conclusion of each supervision mission. However, the Government of Finland will have monitoring and decision-making powers over parallel financing, in coordination with the Project Steering Committee. 11 Note that the Settlement Manual has been included as an Annex to the Project Implementation Manual (PIM). 12 The PMU was established in 2009. -7- 37. At the local level, a Land Advisory Group consisting of community and local government officials, will be created within each identified area (e.g., Dura area for Phase 1) to monitor the implementation of the SLR process at the local level. Within an identified area (e.g., Dura area for Phase 1) a Settlement Office, headed by a PLA Settlement Officer, will be established. For each designated work area, a Systematic Registration Team, responsible for demarcation, adjudication and surveying, will be created. During demarcation, two local block representatives (preferably one male and one female) will be identified to assist in the demarcation process. In each village/neighborhood, a Land Committee will be formed (including a 50% women‟s representation) in conjunction with the Municipality/Village Council to assist in the resolution of disputes unresolved during demarcation. To assist with public awareness at the local level, a Social Facilitation Team will be contracted through parallel financing, and will be responsible for public awareness activities and legal assistance to vulnerable persons, including residents of state land. These arrangements will help integrate social consultations into the demarcation and dispute resolution process. 38. Procurement and Financial Management. The PLA, through its PMU, will be responsible for project procurement and will act as the Bank‟s main counterpart for all procurement aspects. The project financial management and disbursement activities will be executed by the PLA through its Finance Department, in close coordination with the PMU. B. Results Monitoring and Evaluation 39. Project monitoring and evaluation responsibilities are delegated to the PMU. The PMU Project Director, supported by the parallel-financed international technical assistance team, will manage data collection from within the PLA, including the field offices. The Project Director will oversee data aggregation and periodic reporting on project implementation progress, and ensure that the Development Objective and Key Performance Indicators are met. The PMU, supported by the international technical assistance team, will maintain a simple project monitoring and evaluation arrangement, including auxiliary data storage tools for data collection, output dashboards and outcome monitoring, reporting, and evaluation of project performance. Gender sensitive monitoring will be ensured through disaggregation of data, where relevant. C. Sustainability 40. SLR systems and processes, piloted under LAP-I, have proved sustainable as they continue to be implemented through the PLA‟s self-financed work in Bethlehem, Beit Jala, Beit Sahour and Doha within Bethlehem Governorate in the West Bank. Key threats to sustainability are: (i) limited capacity of PLA Staff; and (ii) disincentives for the ongoing use of the registration system subsequent to SLR. 41. The project is designed so that the assistance of the technical assistance team for the SLR will be provided mainly during the first two years of the project. Subsequently, the SLR process will be managed by the Settlement Officer and the Deputy Settlement Officer, both of whom are PLA Staff Members. Quality control for surveying will be provided by PLA Staff. 42. Two key disincentives for the ongoing use of the registration system are: (i) the perception of a sporadic registration process seen as bureaucratic and fraught with corruption; and (ii) the required registration fee for a property transfer. The perception of a bureaucratic and corrupt system would be addressed through Component 2, and with the support of the parallel- -8- financed technical assistance. The current restriction of the Irrevocable Power of Attorney13 to a one-time use only could limit the impact of the required registration fee on project sustainability. V. Key Risks and Mitigation Measures A. Risk Rating Summary Table 2: Risk Rating Summary Type of Risk Rating Stakeholder Risk Low Implementing Agency Risk Substantial - Capacity Substantial - Governance Substantial Project Risk - Design Substantial - Social and Environmental Moderate - Program and Donor Low - Delivery Monitoring & Sustainability Substantial - FM & Procurement Substantial Overall Implementation Risk Substantial B. Overall Risk Rating Explanation 43. Implementing Agency Capacity. The PLA does not have sufficient staff capacity to manage the project. PLA staff is familiar with the technical procedures for systematic land registration (though LAP-I and its own financed work in Bethlehem). To mitigate the capacity risk, the PLA will hire consultants for the PMU, contractors for the demarcation and surveying process, and will be assisted by an international technical assistance team. 44. Governance, Fraud and Corruption Risks. The slow process of completing sporadic land registration, public access to “back office� decision-makers and a lack of public understanding of the registration process can encourage corrupt practices14. This will be mitigated through the development of a transparent land registration process, a robust grievance remediation system, a vision statement, performance standards, a business plan, a public awareness campaign and a training plan for PLA staff. 45. Project Design and Targets. The targets for SLR activities under the project assume a rapid registration timeframe which has not been achieved by the PLA in their self-financed work. Targets remain below international standards. To mitigate this risk: (i) senior international advisors, including a systematic registration advisor, will be financed by the parallel- financed Finnish Technical Assistance; (ii) three to four supervision missions have been proposed during the first year of implementation; and (iii) an 18-month review focusing on operations, primarily for Component 1, will take place prior to the Mid-Term Review (MTR). The MTR is expected 24 months after the start of implementation. 13 The Irrevocable Power of Attorney (IPA) is used to transfer property without registering the transfer and therefore contributes to land informality in the West Bank. In June of 2009 its use was limited to a „one off‟ transfer of land. 14 Examples are requests for payments to process registration quickly and payments for fraudulent registration. -9- 46. Social Risks and Mitigation Measures. The risk of insufficient support from the local community will be mitigated through consultations with the Dura “clans� and a public awareness campaign; (ii) inadequate attention to women‟s rights will be mitigated through a gender- sensitive public awareness campaign and implementation arrangements15; and (iii) the safeguards-related risk (which is low) – which would be the potential eviction of encroachers on state lands [an estimated one percent of Second Land Administration Project (LAP-II) sites] – will be mitigated by clear procedures for identifying occupants of state lands and compensation of non-land assets to individuals; a social facilitation team to provide advice and guidance on all issues; local land committees to mediate disputes; a specialized settlement team of experts; a 30- day public viewing period; and a court hearing by a settlement judge appointed by the Supreme Court. 47. Fiduciary Risks in Procurement are rated as “substantial� and are linked primarily to the PLA‟s limited procurement and contract management capacity, and to challenges associated with the implementation of multiple interrelated tasks, as well as the potential for collusive practices among private sector firms. Risk mitigation measures will include: (i) the recruitment of a qualified Procurement Officer; (ii) the inclusion of a Manual of Procurement Procedures (PM) as part of the PIM; (iii) procurement training for the project team at the start of implementation; (iv) procurement packaging which would allow for wider competition; and (iv) procurement orientation sessions for surveying firms. The Bank‟s prior review thresholds were set based on existing procurement capacities and identified procurement risks. 48. Fiduciary Risks in Financial Management. The financial management risk of the proposed project is considered substantial due to the limited capacity of the PLA to manage World Bank financial management and reporting activities, as well as risks of overlapping funds. Mitigation measures will include: a qualified financial officer from PLA to manage FM function has been appointed, training of PLA FM officer, maintaining separate designated accounts for each financier, verification of co-financing implementation arrangements in the audit‟s terms of reference, applicable disbursement procedures and the inclusion of a Financial Management Policies and Procedures Manual as an Annex to the PIM, acceptable to the Bank. VI. Appraisal Summary A. Economic and Financial Analysis 49. An indicative economic analysis, based on a partial approach using the benefit stream from incremental new affordable housing activities, yielded an Economic Rate of Return (ERR) of 55 percent for the cost of systematic registration only. When the full cost of the investment is considered (including the TFGWB financing of US$ 3 million, the Finnish co-financing of US$ 5.7 million and the Finnish parallel financing of US$ 5.8 million), the resulting ERR is 29 percent. Estimated Net Present Values (NPVs; US$28 million for Component 1 and US$22 million for the project as a whole) and cost benefit ratios (6.39 for Component 1, and 3.0 for the project as a whole16), confirm these results17. 15 Including block representatives (one woman and one man), and a social facilitation team to protect the rights of vulnerable persons, including women. 16 This is derived by dividing the discounted costs by the discounted benefits. A value greater than 1 would indicate a useful project. -10- B. Technical 50. The legal basis for the project is considered satisfactory. The project will operate under the same legal framework used for LAP-I. The Land and Water Settlement Law no. 40 of 1952 and its amendments regulate the process of recording unregistered land (including water resources), and sets out a settlement mechanism to resolve disputes arising from competing claims on these unregistered lands in order to complete the registration process. 51. A Settlement Manual (SM), approved in June 2009, which is also included as an Annex to the PIM, was prepared to provide guidance where the law is unclear. Systematic registration processes and procedures were clearly developed and documented in the SM and land survey guidelines. Procedures in the SM are also elaborated in the PIM‟s main text and annexes and will provide adequate public information through official public notices and less formal public meetings and workshops. This will also take into account the needs of the vulnerable population, including women, who might otherwise have difficulty protecting their rights. Demarcation of property boundaries, reviews of legal documentation and mediation procedures in case of disputes are sufficiently elaborated in the SM and supplemented by the main text of the PIM and related Annexes. Survey work will be completed using the most up-to-date technology and the final cadastral maps and records will be publicly displayed for 30 days. Objections can be raised and heard by a formally appointed settlement judge and appeals can be presented to the court. The procedures outlined are technically sound and provide sufficient public protection. 52. The main risk to project success are organizational and managerial, rather than technical, as the PLA will be required to complete the systematic registration more efficiently than under LAP-I or under their own financed work in Bethlehem, Beit Sahour, Beit Jala and Doha. Resources to achieve project targets have been included in the project design. During the course of the project, the technology used by the PLA will be updated and improved according to an Information Technology (IT) strategy to be developed within the first year of the project. Technical capacities within the PLA are good, but will be further strengthened through additional support during the course of the project. Technical assistance will assist the PLA in addressing public services by improving service standards and developing a corporate strategy. C. Financial Management 53. A financial management capacity assessment for the PLA, in the context of the FM requirements for the proposed project, was carried out in June 2011 and updated in January 2012. The assessment evaluated the institutional capacity of the PLA to carry out financial management according to World Bank Guidelines. The assessment concluded that the implementation of the agreed-upon actions that are described in Annex 3 would satisfy the minimum requirements under OP/BP10.02. The detailed financial management capacity assessment and arrangements are documented in the Project files. 54. Financial Management and disbursement aspects for the Project will be carried out by the PLA through its Finance Department in coordination with the PLA‟s Project Management Unit (PMU). The PMU will be responsible for the overall implementation of the proposed project activities in accordance with the Grant Agreement, Project Implementation Manual, and 17 Satana, S. 2011. LAP-II: Economic and Financial Analysis. September 12, 2011. -11- applicable laws and practices. The PLA in coordination with the PMU will be responsible for preparing and issuing Project budgets (disbursement plans), all financial reports, including the Interim Financial Reports (IFRs), and following up with external auditors for the Annual Audited Financial Reports. A qualified Finance Officer from the PLA‟s Finance Department has been identified and will be assigned to handle the project‟s financial management and disbursement. 55. The project will be co-financed by the World Bank Trust Fund for West Bank and Gaza, and the Government of Finland, which will make its funds available through a Trust Fund to be administered by the World Bank. Each source of funds will be disbursed through a segregated Designated Account (DA); one in U.S. Dollar and the other one in Euro, to be opened by the MoF under the Central Treasury Account at the Bank of Palestine and will be managed by the PLA. There will be no commingling of funds in the segregated designated accounts which will receive proceeds from the Trust Funds to finance expenditures eligible under the Grant Agreement. Each DA will have a ceiling equivalent four months of forecasted project expenditures. There will be no subaccounts under these designated accounts and reimbursements to PLA for payments made from its own resources will not be permitted under this project until adequate safeguards have been put in place to monitor accounts to which reimbursements would be made. Each source of financing will finance 100% of expenditures allocated under the respective Grant Agreements and the procurement plan will indicate the source of financing for each contract. Separate accounting records will be maintained for each but quarterly IFRs and annual audited financial reports will be comprehensive covering the whole Project activities and funding sources. The Project Implementation manual of policies and procedures (Annex 16) includes financial management procedures for managing both funding and having separate bank account for each financier, keeping separate accounting records, and regularly reconcile accounts with Project records. D. Procurement 56. A procurement assessment for the PLA was carried out in June 2011 and updated at appraisal. Mitigation measures were designed accordingly. Procurement of goods, works and non-consulting services will be carried out in accordance with the World Bank‟s “Guidelines on Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� published by the World Bank in January 2011. For the selection of consultants, the World Bank‟s “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� published by the World Bank in January 2011 shall be used. Guidelines on “Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants�, dated October 15, 2006 and updated January 2011, will be applicable to the project. 57. The PLA will have responsibility for project procurement activities through the PMU, acting as the Bank‟s main counterpart for all procurement aspects of the project. A qualified Procurement Officer with adequate knowledge of Bank Procurement policies will be recruited and will be responsible for all project procurement. The PMU‟s contract management capacity will be further strengthened through the parallel-financed international technical assistance team. The PLA settlement officer, located in the local field office, will be in charge of daily monitoring of land surveying contracts by private sector service-providers, as well as supervision of PLA- contracted staff. These institutional responsibilities are further outlined in the PIM. In addition -12- to the institutional arrangements, a Manual of Procurement Procedures (PM) which details the procedural requirements for procurement and contract management has been prepared as an Annex to the PIM. To ensure that full capacity, the PMU and other concerned staff from the PLA departments will receive training on the use of the PM immediately following Effectiveness. 58. Procurement packaging, particularly for land surveying services, has been determined to allow for the widest possible competition based on private sector structures and capacities, and will be revisited as necessary throughout project implementation. The PMU will organize orientation sessions for land surveying firms on bidding documents, procedures and requirements, as well as the scope of work and performance specifications required. A procurement plan (PP) for the first 18 months of project implementation was prepared and agreed with the Bank during appraisal. The PP was developed based on unit costs agreed during the appraisal mission. The plan specifies the procurement packages, estimated costs, methods and schedule and takes into consideration the project implementation schedule, the capacity of the local service providers, and the PLA procurement and contract management capacity. The PP will be updated at least annually, or as needed to reflect actual project implementation needs. 59. The Bank‟s prior review thresholds were determined based on the existing procurement capacity and identified procurement risks. In addition to prior reviews, the Bank will carry out at least two supervision missions per year during which close follow-up and quality control of procurement management matters will be maintained. The overall procurement risk rating for the project is “substantial� (see Annex 3 for further details). E. Social 60. Opportunities and impacts. The social development impacts of this project are expected to be positive and will include: (i) increased tenure security, including for women; (ii) strengthening of women‟s land rights and social status; (iii) increased access to mortgage credit; (iv) generation of economic opportunities for investments on formally registered land; (v) development of a formal land market; and (vi) enhanced citizen satisfaction with PLA services. 61. Public awareness, dispute resolution and protection of the vulnerable population. A Social Facilitation Team, comprising a lawyer, a social scientist and a trainer, will provide public awareness, community training, information activities and advice throughout the project, in parallel to the demarcation team. During the course of systematic registration, block representatives will provide advice to the demarcation team, to ensure that owners or their representatives are advising honestly on ownership and boundary information. If disputes arise, the demarcation team will refer the case back to the settlement officer for mediation, initially by a local village or neighborhood land committee. If mediation fails, the case will go to the settlement officer for resolution according to the established procedure outlined in the law, the Settlement Manual (SM) and in the related sections of the main text and annexes to the PIM. If required, appeals can be presented to the settlement judge and the high court, as provided by law. 62. Social Safeguards: The Bank‟s Operational Policy 4.12 on Involuntary Land Acquisition and Resettlement is not triggered. The main safeguard-related risk would be the potential eviction of encroachers on state lands. State lands represent only an estimated one percent18 of 18 This figure is based on the known locations of the state lands for Phase I of LAP-II. -13- LAP-II sites, thus the encroachment risk has been assessed as negligible. The Bank‟s substantial due diligence measures (outlined below), confirms that the overall risk is low. 63. Assessment of Laws and Procedures Governing Encroachment on State Lands. Findings of the January 2012 Legal Memorandum on Palestinian State Laws for Dealing with Occupants on State Lands reveal significant differences between the management of registered and unregistered state lands. The LAP-II covers unregistered lands which are governed by Law No. 40 of 1952. This places the onus on the Palestinian Authority, rather than the occupant, to prove ownership. The implication is that evictions of encroachers and squatters on public land are unlikely under the project. The memorandum further shows that squatters on unregistered state lands have relatively strong protection against eviction since proof of continued land use is usually sufficient evidence of ownership for the courts. Oral testimony of neighbors and other community members can be as binding as written legal documents when trying to prove continuous use. Such measures provide additional support to vulnerable claimants and those who have lost paperwork through circumstances beyond their control. 64. Social Assessment Exercise: Extent of Illegal Occupancy on State Lands, Including Field Investigations. The findings of the Social Assessment dated February 23, 2012 support the conclusions of the 2012 Legal Memorandum and show that encroachers on unregistered state lands are rarely evicted. The PLA confirmed that there have been no known instances of illegal occupant relocation from unregistered state lands, in part because of the PA‟s principle of avoiding the forced displacement of populations. Findings from the Social Assessment indicated for LAP-II Phase 1 sites, there are only 13 known cases of potential illegal occupation. For these cases, initially Law No. 40 of 1952 will be applied, which places the onus on the Palestinian Government (rather than the occupant) to prove ownership. The PLA reported that in 2010, there were 137 confirmed instances of possible encroachment on state lands in the West Bank. 19 Of these cases only 30 were taken to court by the PLA20. Of the remaining 107, seventy one cases are under review by a PLA committee and these will likely result in the registration of lands in the names of the encroachers,21 twenty six (of the 137) occupants had supporting documents of ownership and have been registered as owners by the PLA, and ten encroachers have moved voluntarily. The PLA‟s experience with land resettlement and systematic pilot land registration in Betunia, Bir Nabala and Qarawt Bani Zeid village within Ramallah, and Al-Bireh Governorate in the West Bank (financed under LAP-I), and based on an ongoing PA-financed land registration in Bethlehem Governorate, shows no evident instances of illegal occupant dislocation.22 65. In addition to evidence of a low-risk based on case studies, the Social Assessment and interviews conducted by the Bank with established Palestinian land scholars show there is a high 19 Information provided by the PLA in December 2010.The 137 cases were in the following areas: Jericho City (59 cases), the Jenin area (32 cases), the Tubas area (14 cases), the Hebron area (12 cases of which 9 are in the project area); and Tulkarem, Qalqiliah & Nablus (20 cases). 20 These involved registered lands. In the majority of these cases, the occupiers will likely be found guilty. According to the PLA, in reviewing a sample of 14 of the 30 cases, it appears that enforcement of this law No. 14 is rare: 6 cases will likely be regularized, 5 encroachers left willingly. 21 According to the PLA, 71 cases are under the review by a PLA Committee and will likely result in registering the land in the name of the owner. Most of these cases are in Jericho. 22 Rassem Khamaisi and Team. Draft Enquiry into a Resettlement Policy Framework. Pg. 45, June 14, 2011. -14- degree of local knowledge regarding land rights and regimes, and that an array of informal mechanisms to address land disputes does exist. Such informal but accepted practices, combined with the comprehensive formal systems already in place, have reportedly resulted in rare instances of trespassing and infringement, both by the government and individuals. 66. A Robust Grievance Redressal Mechanism. The project‟s grievance mechanism allows for disputes to be resolved amicably, thus limiting the possibility of relocation. Additional protections built into the project design include: (i) a social facilitation team, including a lawyer, to provide advice and guidance on all project issues and whose mandate includes representing vulnerable individuals; (ii) local land committees to mediate disputes; (iii) a specialized settlement team of experts to help resolve cases with the land committee; (iv) a 30-day public viewing period for people to review the decisions and object if need be; and (v) a settlement judge appointed by the Supreme Court to hear the objections raised. 67. Procedures for Resolving Disputes on State Lands: In the unlikely event that disputes regarding state lands arise, the PIM outlines clear procedures for identifying occupants of those lands and providing compensation for lost assets, resettlement allowances and assistance to reestablish incomes and standard of living. F. Environment 68. The project is classified as Category C and will not support land conversion, resource extraction, industrial production or any activity that could potentially damage the environment. The project will register land for which people demonstrate pre-existing ownership rights. Registration of these lands is neutral with respect to land use designation or management. The implementation of systematic land registration procedures will provide public benefits through the provision of an improved capacity to manage land resources through the upgrading of survey equipment and improved monitoring systems. Additionally, land registration will create security in land tenancy, thus increasing land owners' interest in more sustainable asset management. The project will indirectly increase the capacity for improved land and resource management through strengthening the capacity of the PLA. Annex 1: Results Framework Table A: Results Framework Indicators Project Development Objectives Project Outcome Indicators 1. Increase in customer satisfaction with services The project development objective is to improve the design provided by the PLA in the Project Area. and implementation of the land registration system in the Project Area. The Project Area is defined as municipalities, 2. Decrease in time required for land transaction villages and project committees in the Dura district and in an processing in at least four PLA offices23. adjacent area of not less than 180,000 dunums. 3. Reduction in costs of Systematic Land Registration Activities in the Project Area by at least 60% by end of project. 23 Social satisfaction surveys in areas covered by SLR activities and customer satisfaction surveys in up to four PLA offices. -15- Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Indicators Component 1:Systematic Land Registration in Project Area Completion of systematic Number of dunums surveyed and Assess whether a viable methodology registration in the Project Area cadastral maps available in digital suitable for a national rollout is being form. established through assessment of the number of dunums surveyed and the average time taken to register. Number of objections lodged during Assessment of the effectiveness of the public display period decreased. the public display period, procedures, and the methodology for resolving disputes. Strengthening and Handbook for dispute resolution Will allow for sustainability of the institutionalizing of land dispute mechanisms prepared and adopted by program for roll out to the rest of the resolution mechanisms. PLA. West Bank.  Component 2: Institutional Strengthening of the PLA Corporate strategy and corporate Corporate Strategy and Business Reports feeding into and/or as part of business plan, including human plan, including the staffing plan the Corporate Strategy and Business resource strategy, implemented. completed. Plan, including the institutional assessment of the PLA, and training needs assessment will be utilized to assess whether the PLA is meeting its mandate and what corrective action may need to be taken. Computerized Land Records Cadastral mapping system Computerization of the cadastral Management System upgraded and incorporated into the PLA‟s maps will simplify the land rolled out. computerized Land Records registration and transaction process. Management System. IT strategy adopted. Implementation will be monitored as IT system development is often problematic and action will be required if adoption is delayed. Component 3. Project Management, Monitoring and Evaluation Effective project management Project management assessed as Project Management would be system satisfactory by supervision teams. monitored to ensure timely implementation progress and Semi-annual Progress Reports achievement of the project‟s intended delivered on time. outcomes. -16- Annex 1.1: Results Framework and Monitoring Country: West Bank and Gaza Project Name: Second Land Administration Project (LAP-II) (P105403) Results Framework Project Development Objectives Project Development Objectives: The project development objective is to improve the design and implementation of the land registration system in the Project Area. Project Development Objective Indicators Cumulative Target Values Data Source/ Responsibility for Indicator Name Core Unit of Measure Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection Social satisfaction/ Impact surveys in Increase in customer Years 1, 3, and 5 satisfaction with services Percentage 0.00 - - 15.00 - 30.00 Years 1, 3, & 5 PMU provided by PLA in the Periodic customer Project Area. satisfaction surveys PMU monitoring Decrease in time required for land transaction Days 42.00 - - 20.00 - 15.00 Years 3 & 5 Doing Business PMU processing in at least four Surveys (for PLA offices. verification only) Weekly Field Data Reduction in costs of sheets Systematic Land PMU Registration Activities in US$86 (rural) US$ 40 per US$35 per US$ 35 per Semi-annual Amount (US$) - - Weekly the Project Area by at US$138 (urban) dunum dunum dunum Progress Reports Financing Partners least 60% by end of project. 18-month Assessment Intermediate Results Indicators Cumulative Target Values Data Source/ Responsibility for Indicator Name Core Unit of Measure Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection At least At least Number of Dunums Number 0 10,000 90,000 160,000 Weekly Weekly Field Data PMU 180,000 180,000 surveyed and cadastral sheets -17- maps available in Digital Semi-annual form Progress Reports Status Report of Quarterly IFR Handbook for dispute Semi-annual resolution mechanisms Handbook Handbook in Hand book in Progress Reports Text None - Draft ready Not Applicable PMU prepared and adopted by approved use use PLA. IFRs Tables of Rights No Objections lodged Not Semi-annual during the public display Percentage 25 20 15 10 Below 5 Quarterly PMU Applicable Progress Reports period decreased IFRs PLA Annual Corporate Strategy and Report to the Annual Annual Annual PLA Business plan, including Approved Cabinet Text None - Business Plan Business Plan Business Plan Annually the staffing plan and plan updated updated updated PMU training plan completed Semi-annual Progress Reports Assessments by TAT and system Cadastral mapping reviews system incorporated in TAT Consultant the PLA‟s computerized Yes/No No - - - - Yes Annually Semi-annual Land Records PMU Progress Reports Management System IFRs IT Assessment Report TAT IT experts Strategy Strategy Strategy IT strategy adopted Text None Draft Draft Not Applicable Semi-annual approved operational operational Progress Reports PMU IFRs Project management FP Semiannual assessed as satisfactory Text Not Applicable Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Continuous review mission Financing Partners by supervision teams aide-mémoires Semi-annual Progress FP Semiannual Reports delivered on Yes/No Not Applicable Yes Yes Yes Yes Yes Quarterly review mission Financing Partners time. aide-mémoires -18- Annex 1.2: Results Framework and Monitoring Country: West Bank and Gaza Project Name: Second Land Administration Project (LAP-II) (P105403) Results Framework Project Development Objective Indicators Indicator Name Description (indicator definition etc.) Increase in customer satisfaction with services provided by PLA in the Project Social/Impact surveys will also pay close attention to the number and percentage of women who are Area. direct project beneficiaries. Customer satisfaction surveys will assess satisfaction with transparency, efficiency and service standards in the Project Area and in up to four PLA offices and could be done frequently. The project will pay particular attention to women beneficiary responses. Decrease in time required for land transaction processing in at least four PLA Baseline is from Doing Business Survey (2011). There is a 10 working day legally mandated period for offices. objections Reduction in costs of Systematic Land Registration Activities in the Project Indicator measures cost-effectiveness of Systematic Land Registration Area by at least 60% by end of project. Intermediate Results Indicators Indicator Name Description (indicator definition etc.) Number of Dunums surveyed and cadastral maps available in Digital form Expectation is that Year 4 and end targets will be higher than 180,000 dunums Handbook for dispute resolution mechanisms prepared and adopted by PLA. No description provided No Objections lodged during the public display period decreased Based on baseline from PLA's work in Bethlehem Corporate Strategy and Business plan, including the staffing plan and training No description provided plan completed Cadastral mapping system incorporated in the PLA‟s computerized Land No description provided Records Management System IT strategy adopted PLA Formal Approval Project management assessed as satisfactory by supervision teams Assessment will be on a 5-point scale from Unsatisfactory to Highly Satisfactory Semi-annual Progress Reports delivered on time PMU is responsible for submitting quality Semi-annual progress reports in a timely manner -19- Annex 2: Project Description Annex 2.1: Description of Project Components 1. The project development objective is to improve the design and implementation of the land registration system in the Project Area. The Project Area is defined as municipalities, villages and project committees in the Dura district (Phase 1, see Table 3) and in an adjacent area of not less than 180,000 dunums (Phase 2) and the area serviced by the 4 targeted PLA offices (see Table 1). The exact location and area to be covered under Phase 2 will be agreed following a progress review to be conducted 18 months after the projects start. The project aims at completing systematic registration and providing improved registration services in these locations, thus providing a model of efficient land registration that can later be replicated. 2. The project is composed of three components. The first component would provide resources to the PLA to complete systematic registration in the selected project sites. The second component would assist the PLA in effectively implementing its mandate, and in particular, managing SLR activities. The third component would support project management and technical assistance activities. Component 1: Systematic Land Registration in the Project Area 3. Summary: This component will provide resources to the PLA to complete systematic land registration for at least 180,000 dunums of land in the West Bank to be implemented in two phases, and to develop their capacity to further implement SLR in the rest of the West Bank. 4. Phase 1 would register 90,000 dunums of land in the Dura district over 24 months from the start of the SLR activities. Phase 2 would extend the systematic land registration process to at least an additional 90,000 dunums of land in an area most likely in the southern West Bank. The possibility of including an area greater than 90,000 dunums will be reviewed towards the end of Phase 1, depending on the work progress of the SLR process. 5. The procedures developed through the implementation of this Component could be institutionalized within the PLA for implementation across the West Bank. 6. The TFGWB will finance non-consulting services, software and equipment for land demarcation, adjudication, surveying and registration, provision of materials and consultants‟ services for the related public awareness campaign and financing of PLA Operating Costs for systematic land registration. The TFGWB will also finance furniture and office equipment for the PLA field office in Dura. 7. The co-financing TF will finance non-consulting services, software and equipment for land demarcation, adjudication, surveying and registration, provision of materials and consultants‟ services for the related public awareness campaign and financing of PLA Operating Costs for systematic land registration. The technical assistance team financed in parallel by the Government of Finland will also provide technical assistance for this component. -20- 8. PLA Operating costs are: (i) salaries and other expenditures (including field transportation) an estimated 52 temporary PLA temporary staff (non civil servants), including demarcation and surveying field crew and crew leaders, incurred on the account of component 1, (ii) local travel expenditures, including per-diem, for PLA regular staff, and (iii) reasonable and necessary incremental expenditures related to PLA field offices rental, field offices maintenance and utility charges, communication costs, vehicle rental, vehicle insurance and maintenance, and vehicle petrol, incurred on the account of component 1. 9. Project Areas: The town and surrounding areas of Dura have been selected as the initial project site (See Table 3). The site was selected by the PA based on the criteria endorsed by the 12th government on July 7, 2008, namely: (a) a site with potential for construction and economic improvement; (b) a site with potential or actual disputes; (c) a site where systematic registration had not previously been attempted and, therefore, requiring clarity. 10. SLR Methodology and Work Plan: Systematic Land Registration will be implemented using the methodology piloted, and subsequently revised, based on lessons learnt in the Land Administration Project (LAP-I) and also in the PLA‟s own financed work in Bethlehem, Beit Sahour, Beit Jala and Doha within the Bethlehem Governorate in the West Bank. This is documented in a comprehensive Settlement Manual (SM), supplemented by the relevant sections in the Main Text of the PIM and other related Annexes. However, the project will pay particular attention to: (a) Organizing the work in such a way that it can be completed rapidly at minimal cost. This focus arises from a need to ensure cost efficiency of the SLR process so that it can then be rolled out by the PLA across the West Bank. This will require the development of clear plans and time schedules for each phase of the work, establishing work norms and targets for the staff and contractors, and ensuring that the time schedules and targets are met24. (b) Protection of the rights of the vulnerable, particularly women, in the SLR process. This would address findings of the Social Assessment (2011) which identified key contentious issues as relating primarily to the need to protect women‟s rights during the process of inheritance and adjudicating of property rights. 11. Stage One: Preparatory Phase. The targeted project area (e.g. Dura in Phase 1) will be further divided into sub-areas and an approximate target date for the start of the process will be allocated to each sub-area. For example, the Dura Project Area covers approximately 90,000 24 Work under LAP-I successfully identified many of the benefits to systematic registration and piloted methods for completing this work in three sites. However, a methodology that would enable the full country to be covered within a reasonable time and cost frame was not achieved. The average cost per dunum for urban and peri-urban areas was US$86 and for rural areas varied between US$59 and US$138. Nearly 14,000 dunums were covered in the 3.5 years that the project was implemented. Recent work on systematic registration funded by the PLA in Bethlehem is being completed only marginally faster. When it is considered that there are over 230 million dunums in areas A and B in the West Bank, it is clear that a much more rapid and cost effective method for systematic registration are required. There is ample experience in other countries that the work can be completed for less than one tenth of the costs experienced in the West Bank. It is estimated that within LAPSLR could be completed for approximately US$ 40 per dunum, possibly cheaper. -21- dunums25. This will be divided into one urban area of 20,000 dunums, and two rural areas of approximately 35,000 dunums. . These sub-areas will then be further divided into sections (between 3 and 5 per area) and then into blocks covering about 300 to 400 dunums each. All official stakeholders that have land interests (including the municipalities, the Joint Services Councils, the Village Councils, the Project Committees, and the Ministries of Agriculture, Public Works and Housing, Waqf and Religious Affairs, Tourism, etc.) will be informed of the start of the project. Concurrently, the Clans of Dura, and other stakeholders will also be approached for their support and assistance. A Land Advisory Group will be established and will start meeting. 12. The systematic registration team will be appointed or recruited as needed. The PLA will appoint the Settlement Officer, a Deputy Settlement Officer and four surveyors responsible for quality control. Approximately fifty two others will be contracted using project funds. These will comprise registration officers, surveyors, legal assistants, cartographers and support staff. They will form approximately 10 demarcation teams for demarcation of properties and assessing property rights. 13. Preparatory phase maps and records from the PLA, municipalities and tax authorities will be collected and the PLA will put in place a geodetic network to be used as the basis for survey work during the SLR procedure. The new demarcation teams will undergo training during this preparatory phase, which is expected to last about three months. 14. Stage Two: Systematic Registration Announcement: The SLR process will be officially announced through the issuing of a Systematic Registration Order at least thirty days before the start of the demarcation process. This announcement also allows the PLA to request the Higher Judicial Council (HJC) to appoint a Settlement Judge. The announcement would be closely followed by an intensive public awareness campaign outlining the systematic land registration process. 15. Stage Three: Demarcation, Adjudication and Surveying: Demarcation teams will have clear daily targets for their work and will schedule meetings with owners at specified dates and times. They will be supported by block representatives (preferably one man and one woman per block) who will provide local information and context during the time that owners are showing the teams their boundaries, and providing documents and claim forms. For each block (or group of blocks) a village or neighborhood Land Committee will be established. The Land Committee will comprise both male and female representatives of the community and will assist with solving disputes. The demarcation teams will have specified quotas to meet each day. If disagreements between owners cannot be quickly resolved, the team will defer solving the issue to another day and proceed to their next appointment. An experienced team (with senior specialists) will follow up, returning with the village or community land committee to attempt to resolve the dispute. 16. The survey of boundaries and production of cadastral maps will be contracted to the private sector for some of the work, partly to increase productivity and partly to see if contracting results in faster, less expensive completion of surveying. 25 Ten dunums equal one hectare. -22- 17. Once the maps and legal records are completed, the table of rights is prepared and put on public display for a period of 30 days. Objections to the accuracy of the records are heard by the Settlement Judge. There is also a possibility to appeal to the High Court if the petitioner is not satisfied with the conclusion of the settlement judge. 18. State Land: During the preparatory phase, the State Land Department of the PLA will identify all state land and transfer the required files to the Settlement Field Office. The Municipality will identify its property and, if not registered, provide a justification for its ownership (e.g. public use as school based on possession). 19. During the demarcation process, the demarcation team will check that the land is not encroached upon by private individuals prior to recording the land as State Land. In the event that any part of state land is used or occupied without documentation supporting such use or occupation, and without approval from the agencies responsible for management of that land, the facts about the use or occupation will be recorded in a report by the Settlement Officer to accompany the table of claims26. This information will be provided also to the PMU Project Director, the Social Facilitation Team and to the World Bank and the Government of Finland. 20. In the event that an affected person is not in agreement with the table of rights prepared by the Settlement Officer and approved by the PLA, they have the right to appeal this decision before the Settlement Court Judge. The Social Facilitation Team may assist them in this regard. In the case that state land is used or occupied by persons without the necessary approval, the table of rights will record that an objection by the occupier has been lodged and that no transactions with the property, including registration, of the property will be permitted until such time as the case is resolved. The occupant will be allowed to continue use of the property. If the applicant is satisfied with the decision of the Settlement Judge this restriction against registration of the property can be removed. If the applicant appeals to the Appellate Court the restriction will remain until the Court final decision. 21. If the court decision is in favor of the PA and there is a construction on the state land that had been established by the occupier and if the land occupied is not restricted for use because of environmental or historical cultural reasons, the PLA will try to regularize occupation of State land either through offering the land for sale at market rate solely to the occupant (such rate would be assessed as if the land were vacant), issuing a long term lease or some other form of occupation permit. In the event that the occupier of premises has (i) pursued all legal means outlined above, but that the land in question is to be registered as State land; and (ii) the occupier is required to remove any structure or economic asset from that land; and (iii) the occupation occurred prior to February 23, 201227, the occupants will be relocated to an equivalent structure at government expense. If relocation is not feasible because either (i) only part of a structure is on State land; or (ii) no equivalent structure is available or (iii) the relocation is not acceptable to 26 These facts will include the extent of encroachment, the use of the land and any structures built on that land, the duration of the encroachment and whether the land is being used for residential or commercial purposes. The condition of the property and reference to the vulnerability of the occupiers (whether unemployed, disabled, low income, children or elderly in residence, etc.). 27 This date is the date of submission of the final Social Assessment to the Bank. -23- the occupiers, the government will provide full compensation for the replacement cost of the structure or other economic assets, including any related transactional costs and other, appropriate development assistance that is informed by and linked to the occupant‟s social assessment. 22. The PMU Project Director will inform the World Bank and the Government of Finland if the occupied land is restricted for environmental or historical cultural reasons, as determined by the PLA. The World Bank Social and Environment Specialist will do due diligence in verifying this. The Project Director will keep the Bank informed at each stage of the process involving the occupation of State lands. The Social Facilitation Team will also play a role in the independent verification of restricted use of land. 23. 18 Month Review: Eighteen months into the start of the SLR activities, an assessment of the progress and lessons learnt in the Phase 1 area will occur and preparation will commence for continuing work in the other locations to be covered under the project. The total area to be covered by the project is estimated to be at least 180,000 dunums. Table 3: Potential Targeted Municipalities, Villages and Project Committee for Phase 1 Name Locality Type Local Authority Type Total Area (D) Dura/ Urban Urban Dura Municipality 91,294 Alyasrieh( Alkom, Der Samt , Beit awa) Urban Alyasrieh Municipality 7,000 Kharsa Rural Project Committee 5,000 Ifqeqis Urban Dura Municipality 4,700 Wadi Ibied Rural Project Committee 9,900 Kherbit Salameh Rural Project Committee 9,900 Sket Watas Rural Project Committee 4,700 Almajed Rural Village Council 5,000 Deir Alasal Athta Rural Village Council 5,000 Deir Alasal Alfuqa Rural Village Council 2,000 Beit Arous Athta Rural Village Council 000 Beit Aroush Alfoqa Rural Village Council 3,500 Beit Marsam Rural Village Council 9,500 Al Burj Rural Village Council 5,000 Taramah Rural Project Committee 4,000 Alsara Rural Project Committee 5,500 Khalet Aloqad Rural Project Committee 9,400 Elalqa Rural Project Committee 9,900 Qarma Rural Project Committee 4,000 Karza Rural Project Committee 9,500 Abo alazja Rural - 4,300 Raboud Rural - 4,400 Imraish Rural Project Committee 4,000 Deir Razh Rural - 2,500 Hadab Alfour - 3,500 -24- Component 2: Institutional Strengthening of the PLA 24. This component will assist the PLA in effectively implementing its mandate and, in particular, managing systematic land registration through institutional strengthening including implementation of enabling technology and modernization of PLA Offices. 25. Sub-Component 2.1: Institutional strengthening PLA. This sub-component aims at improving PLA‟s management capacities including rationalizing PLA‟s management structure, leadership, planning and monitoring functions. It will do so through assisting the PLA in: (i) conducting an Institutional Needs Assessment (INA), (ii) formulating a corporate strategy and preparing the annual business plans, (iii) establishing a monitoring and evaluation system, (iv) improving service delivery and standards, (vi) improving of public relations and outreach, (vii) formulating of Human Resources Development Strategy, including conducting the training needs assessment and training strategy and; (viii) providing training. 26. The INA will review the PLA‟s institutional structure, with an emphasis on changes subsequent to a transition to digital data, and due to scaling up systematic registration. The assessment will provide a basis for the Corporate Strategy, and, from the second year of the project onwards, for Annual Business Plans and subsequent implementation plans for all departments and regional offices. The planning exercise will be complemented by the establishment of the PLA monitoring and evaluation system. 27. Improvement in service delivery of PLA, and especially in the systematic land registration and property transactions services, will occur through improving skills, improving data quality, and introduction of a code of conduct. The PLA will also be supported in improving its public awareness and outreach activities as these are also closely linked to improving services to its customers. Public awareness activities will be central to ensuring transparency and improving the image of the PLA among its clients. 28. As the PLA has a relatively high inflow of new staff, a human resources development strategy and an extensive training program will be developed. The training plan will address technical and institutional training. Technical training will consist of surveying, registration, land administration, tenure rights and support functions. Other training will consist of management and leadership, financial management and reporting, social issues, customer service and other relevant areas. 29. The sub-component will also assist in the implementation of enabling technology. This sub-component will strengthen the PLA capacities in land registration and improve the standard of service delivery. It includes extending and improving the PLA‟s technology infrastructure and the streamlining and improving the transparency of administrative procedures to better support the systematic registration process. 30. The project will finance the following activities: (i) the roll-out of the Computerized Land Registration System (CLRS) to four other PLA offices (Jenin, Nablus, and two other PLA regional offices), (ii) the preparation of an IT strategy for the PLA, (iii) the development of further enterprise software applications to extend the CLRS, (iv) a concentrated emphasis on -25- process improvement in land registration, (v) conducting a feasibility study for a Continuous Operation Reference System (CORS) in the West Bank, and (vi) upgrading of survey equipment for the Survey Department. 31. These measures, in conjunction with the broader institutional development, will maximize the benefits of systematic registration and facilitate the updating of the land registers thereby preserving the investment that has been made in systematic registration under Component 1. 32. This sub-component is also related to the other sub-components under Component 2 (Institutional Development of PLA). As a result of the PLA business plan, service delivery standards will be established covering the expected timeliness of services related to registration and the quality of information provided in registration services. To meet and ideally surpass these service delivery standards will require improvements to the way that registration is performed. These improvements will involve the introduction of technology, the streamlining of procedures to make registration services more transparent and efficient. 33. The TFGWB will finance IT equipment, servers, software and office equipment for this component. Technical assistance for this subcomponent will be provided by the international technical assistance financed in parallel. 34. Sub-Component 2.2: Modernization of the PLA‟s offices. This sub-component will support the modernization of two PLA regional offices based on the model developed under LAP-II. The offices will be redesigned, as necessary, taking into account the space and functional requirements of land administration and customer services. The equipment will be allocated and IT system installed after staff have been recruited and trained. 35. The project will finance the following activities: (i) setting up of the criteria for the potential additional target offices (e.g. number of transactions in the area, demand for land transactions, PLA‟s priorities, availability of suitable buildings and funding etc), (ii) finalizing the architecture and layout design of the offices, (iii) defining of the specifications for office furniture and equipment, (iv) design and installation of the security, fire alarm, intrusion, and customer service systems, (v) providing offices with record storage cabinets for reorganized or established of digital document archives, and (vi) designing of an archive system in the selected offices. 36. The TFGWB would finance civil works, furniture and equipment for this sub-component. The co-financing Trust Fund will finance interior design, civil works for the modernization of two regional offices and record storage cabinets for the two regional offices. Technical assistance will be provided by the international Technical Assistance Team. Component 3: Project Management, Monitoring and Evaluation 37. This component will support the establishment of a Project Management Unit, Incremental Operating Costs and project Monitoring and Evaluation activities. -26- 38. Project Management Unit (PMU): The PMU would be established to assist the PLA in managing project implementation. The PMU would include a Project Director and a Finance Officer (appointed from the PLA Finance Department), who are both PLA staff. The PMU will also include the following full time and part time individual consultants (financed through the WBGTF) including a Procurement Officer, an Information Technology Specialist, a Social/Public Awareness and Community Participation Officer, and a Translator/Administrator as full time staff. A second Technical Translator will be hired as needed and a Human Resource Development/Training Specialist and two software development specialists will be hired for part of the project period. 39. The PMU is responsible for: (i) project administration, implementation and management; (ii) planning and budgeting; (iii) procurement; (iv) financial management in coordination with PLA finance department; (v) monitoring and evaluation; (vi) community outreach and social development regarding the SLR activities; (vii) reporting; (viii) coordinating with field offices with regards to field activities; (ix) coordinating periodic missions with the financing partners and arranging for high level meetings related to Project administration. 40. The PMU will be supported by the parallel financed international Technical Assistance Team (TAT) in implementing the project. The TAT is tasked with providing expert services in support of project implementation to the PMU and relevant PLA staff. The TAT also consists of experts in systematic registration and adjudication, business planning, human resources development, social aspects and public awareness, M&E, information technology, a geodetic expert, and a junior expert. In addition, the technical support will include a locally hired social facilitation team. The TA team will work in close cooperation with all project stakeholders. The TAT will report to the TA Team Leader, who has the overall responsibility for the performance and deliverables of the TA team and the use the Finnish parallel financing funds. The TA Team Leader will report to the PLA Project Director. 41. PMU Incremental operating costs to be financed are allocated and described as follows: Reasonable and necessary incremental expenditures related to the PMU on the account of component 3 for office maintenance and utility charges, insurance costs, communication costs, office supplies and consumables, banking charges, printing and advertising, vehicle rental, insurance and maintenance, vehicle fuel, project related local travel, including per-diem, and other miscellaneous expenditures directly associated with the implementation of the project. 42. Monitoring and Evaluation activities at the Project implementation level. The PMU would be responsible for monitoring and evaluation activities at the project level and will also manage the social satisfaction/impact and customer satisfaction survey studies also to be financed under this component. 43. The TFGWB will finance consultants‟ services, including audit and training, and financing of PMU operating costs. The co-financing TF will finance consultants‟ services, including training, and the financing of the PMU Operating Costs. -27- Annex 2.2: Scope of Work of Parallel Financed Technical Assistance 44. The TAT will most likely include a Team Leader, a Systematic Registration and Adjudication Advisor, a Junior Systematic Registration Expert, a Human Resource Development and Training Advisor, an Information Technology Advisor, a Social and Public Awareness Advisor, a Business Plan Advisor, a Geodetic Advisor and a Social Facilitation Team (including a Lawyer, and a Social Specialist). 45. Team Leader/Land Administration and Institutional Development Advisor. Under the general supervision of the Ministry for Foreign Affairs of Finland (MFA), in close cooperation with the PMU Project Director, the PMU and all project stakeholders, the Team Leader will lead technical advisory and support activities of the TA, and support as needed the review and/or promotion of regulatory changes in strategies, institutional and organizational reform. 46. Scope of Work: In particular, the Team Leader is expected to (i) lead the technical assistance team and take overall responsibility for TA support to the project; (ii) manage all contracts using the MFA contribution, in both Component 1 and 2; (iii) take the overall responsibility for all institutional development related activities (Component 2); (iv) prepare the ToR for the TA consultancy inputs, studies and surveys to be conducted under Component 2; (v) prepare the ToR for and conduct the Institutional Assessment in consultation with the Project Director; (vi) on the basis of the Institutional Assessment and other surveys and studies, assist the PMU Project Director in updating the Results Monitoring Indicators; (vii) in cooperation with the Project Director and the PLA Corporate Strategy working group, develop the first version of the PLA Corporate Strategy, review further drafts and finalize the strategy; (viii) together with the Business Plan Advisor, support the development of annual departmental Business Plans; (ix) assist the PLA in designing and setting up a qualitative and quantitative monitoring and evaluation (M&E) system for the PLA; (x) train PMU staff on the use and updating of the M&E system, and support the Human Resource Development &Training Advisor in training of PLA staff on data collection, use and updating of the M&E system; (xi) liaise with LAP-II partners, including financing partners, PA agencies, local authorities, and non- governmental actors in the matters relevant to the TA; (xii) liaise with the MFA and the Representative office in Ramallah in matters relevant to MFA funding; Liaise with the PA in the matters relevant to MFA funding; (xiii) take responsibility for the regular progress reporting, financial management and reporting, and reviews when required by the MFA regarding the use of the Finnish contribution. 47. Deliverables: She/he will be responsible for the following deliverables: (i) ToR for the Institutional Assessment; (ii) institutional assessment study; (iii) first version and the final review of the PLA Corporate Strategy; (iv) PLA Code of Conduct; (v) design for the PLA Monitoring and Evaluation system; (vi) regular update of the Results Monitoring Indicators; (vii) ToR for the TA consultancy inputs, studies and surveys to be conducted under the Component 2; (viii) financial and progress reports as required by the MFA; (ix) other deliverables as agreed with the PMU Project Director and MFA. 48. Systematic Registration and Adjudication Advisor. Under the direct supervision of the TA Team Leader and in cooperation with the PMU Project Director, the PMU and with all other -28- project stakeholders, the Advisor will focus on the systematic Land Registration (SLRA) activities in Dura with the primary task of ensuring that systematic registration is completed within the set time frame, and in a way that establishes a replicable methodology for completing such work in a cost effective and rapid manner nationwide. 49. Scope of Work: In particular, the Advisor is expected to: (i) supervise the SLR activities during the first 24 months of LAP-II (phase 1, Dura); (ii) provide technical and legal assistance for the implementation of the SLR activities; (iii) develop, review and refine a replicable, efficient, and sustainable systematic registration methodology to be used across the West Bank; (iv) support the Project Director in surveying contract management; (v) prepare, together with the PLA Directors of surveying and settlement, work plans for the contractors, temporary project staff and related PLA staff; (vi) check the quality of the ToR and bidding documents of the contracted survey work and carefully monitor the cost-effectiveness and quality of this work; (vii) support the preparation and updating of detailed plans and manuals for systematic registration (the Settlement Manual), in particular based on the best practices in Dura pilot; (viii) develop a replicable dispute resolution procedures manual/handbook; (ix) assist the Business Plan Advisor and TA Team Leader in development of the annual business plans, (x) provide guidance on establishment of quality control systems and practices; (xi) liaise with IT Department and IT Advisor to review and optimize systematic registration work processes to take advantage of new software applications and the availability of digital information, and on the transition from paper records to digital information; (xii) propose measures to ensure continued updating of the Computerized Land Registration System (CLRS) and proposed Computerized Cadastral Mapping System after the systematic registration; (xiii) as part of the Human Resources Development plan, review and refine job descriptions for registration and surveying personnel associated with systematic registration; (xiv) supervise the work of the Social Facilitator, and support the systematic registration public awareness campaign; (xv) propose systematic registration measures to ensure fair process for specially disadvantaged groups, women in particular, and ensure that they are implemented; (xvi) identify training needs, in cooperation with the Human Resources Development &Training Advisor, and prepare training material and implement in-service training for systematic registration staff; (xvii) in all aspects mentor and work closely with the counterpart systematic registration staff. 50. Deliverables: She/he will be responsible for the following deliverables: (i) review of the settlement work plans and implementation schedules for the contractors; (ii) replicable systematic registration methodology; (iii) updates of detailed plans and manuals for systematic registration (the Settlement Manual); (iv) replicable dispute resolution procedures manual/handbook; (v) review of the job descriptions for registration and surveying personnel associated with systematic registration; (vi) training material for systematic registration and adjudication; (vii) any other deliverables as agreed with the PMU Project Director and TA Team Leader; (viii) guide and tutor the Junior Systematic Registration Expert. 51. Junior Professional Expert (Systematic Registration Expert). Scope of Work: Under the supervision of the TA Team Leader and the day-to-day guidance of the Systematic Registration and Adjudication Advisor, and in cooperation with PLA Director of Surveying, Project Director and PMU, the Expert will: (i) assist the Systematic Registration Advisor and the PLA Director of Surveying in implementation of all aspects of the systematic registration processes and -29- supporting adherence to deadlines, targets and other deliveries; (ii) monitor the systematic registration field work, in particular the daily work of the demarcation and surveying teams; (iii) assist the field teams in work planning and efficiently following the agreed implementation schedules; (iv) support the implementation and use of software and technology in the field office, including the digital archiving of records collected from claimants, demarcation teams and surveyors during the systematic registration; (v) assisting in the production of tables of claims, tables of rights and the related mapping; (vi) support the PLA staff in all demarcation and surveying related activities in order to ensure that targets are met; (vii) conduct other tasks as agreed by the Project Director, TA Team Leader, the Systematic Registration Advisor and the PLA Director of Surveying. 52. Deliverables: She/he will be responsible for the following deliverables: (i) systematic registration field monitoring reports; (ii) any other deliverables as agreed with the Systematic Registration Advisor, TA Team Leader, and Projector Director. 53. Human Resources Development and Training (HRD&T) Advisor. Scope of Work: Under the direct supervision of the TA Team Leader and in cooperation with the PMU Project Director, the PMU and with all other project stakeholders, the Advisor will: (i) design and document a PLA HRD Strategy and staffing plan for a five year period, outlining continuous HRD and training practices that should be followed within the PLA in support of the professional development of all staff; (ii) prepare the ToR for and conduct a training needs assessment of PLA staff; (iii) on the basis of the needs assessment, prepare a comprehensive training plan with an implementation schedule; (iv) prepare the training plan for the training of the trainers; (v) prepare the ToR and tendering documents for the external training providers, and support the contract management of the training providers; (vi) support the PLA in the preparation of the training material for and implementation of in-house training initiatives; (vii) organize and supervise the implementation of training and ensure follow-up; (viii) elaborate and facilitate internships for students of the universities; (ix) support the Social Facilitator in training activities; (x) assist the TA Team Leader in the preparation of the Institutional Assessment, PLA Corporate Strategy and the Business Plan Advisor in PLA annual departmental Business Plans; (xi) in all aspects mentor and work closely with the counterpart staff and regional consultants. 54. Deliverables: She/he will will be responsible for the following deliverables: (i) PLA HRD Strategy and Staffing Plan; (ii) ToR for the Training Needs Assessment; (iii) training Needs Assessment; (iv) comprehensive training plan and detailed training programs; (v) preparation of training materials; (vi) ToR for the external training providers; (vii) review of the training materials prepared by the training providers; (viii) a plan for the training of the trainers; (ix) any other deliverables as agreed with the PMU Project Director and TA Team Leader. 55. Information Technology (IT) Advisor. Scope of Work: Under the direct supervision of the TA Team Leader and in cooperation with the PMU Project Director, entire PMU and with all other project stakeholders, the IT Advisor will: (i) provide technical assistance for the implementation of the LAP-II IT Systems Development and database and applications development; (ii) in coordination with the heads of the IT Department and the PLA General Directorates (Survey, Registration, State Land, Settlement and Corporate Services) prepare the PLA IT strategy and revise it on an annual basis; (iii) document functional and non-functional -30- requirements for all critical software applications identified in the PLA IT strategy including the Computerized Cadastral Mapping System; (iv) support the IT Department to plan, implement and support the roll-out of the Computerized Land Registration System (CLRS) in other West Bank PLA offices, including any IT training required by PLA staff in these offices, and the planning and design of appropriate user training programs; (v) lead the preparation of the TOR, technical specifications and bidding documents for server office network strengthening in the offices where CLRS implementation will occur, including appropriate UPS and generator arrangements; (vi) lead the preparation of the TOR, technical specifications and bidding documents for the strengthening of the central computing facilities in the Ramallah PLA office, including data storage facilities to hold copies of databases from other PLA offices; (vii) lead the preparation of the TOR, technical specifications and bidding documents for out-sourced IT related activities such as CLRS data entry of the land and apartment register and cadastral map digitizing; (viii) prepare a PLA disaster recovery plan for the PLA computer facilities in all PLA offices, identifying risks to business continuity, mitigating actions to minimize these risks and procedures to be followed should these risks eventuate; (ix) mentor and support the work of the PLA IT Department including software development, system maintenance, data management and network management; (xi) liaise with the FAO Free/Libre Open Source Software Solutions for Open Land Administration project and the planned customization of the FLOSS SOLA software within the PLA; (xii) work closely with PLA and Project technical and managerial staff in order to optimize work processes; (xiii) assist in the strengthening of IT infrastructure in the main PLA office in Ramallah and the establishment of office networks in other PLA offices including the installation of backup and UPS systems; (xiv) support staff involved in systematic registration and document the process to upload of digital data from systematic registration into the CLRS and proposed Computerized Cadastral Mapping System; (xv) identify training needs for PLA users of PLA enterprise software applications (such as CLRS) and IT specialists who will provide IT support to these software applications; (xvi) prepare training material and implement in-house training; (xvii) oversee the LAP-II studies in MIS and other computerized PLA systems; (xviii) provide guidance on establishment of quality control systems and practices within PLA enterprise software applications and within the PLA IT Department. 56. Deliverables: She/he will be responsible for the following deliverables: (i) first draft of the PLA IT strategy; (ii) a plan for the roll-out of the Computerized Land Registration System (CLRS); (iii) ToR, technical specifications and bidding documents for server office network strengthening; (iv) ToR, technical specifications and bidding documents for the strengthening of the central computing facilities in the Ramallah PLA office; (v) ToR, technical specifications and bidding documents for out-sourced IT related activities; (vi) PLA IT Disaster Recovery Plan; (vii) IT related training materials and a draft IT training program; (viii) review of the LAP-II studies in MIS and other computerized PLA systems; (ix) all other deliverables agreed with the Project Director and TA Team Leader. 57. Social and Public Awareness Advisor. Scope of Work: Under the direct supervision of the TA Team Leader and in cooperation with the PMU Project Director, the entire PMU and with all other project stakeholders, the Advisor will: (i) review and refine the ToR for and support the implementation of the combined customer surveys and social studies; (ii) assist in engendering the monitoring and evaluation system, particularly to ensure engendered baseline data; (iii) review and refine the TOR and the Social Facilitator NGO; (iv) Lead the selection of -31- the Social Facilitator NGO, and support the PMU social and public awareness specialist in mobilizing the NGO; (v) support the preparation of a comprehensive work plan for the Social Facilitator synchronized with the work of the demarcation teams and the whole systematic registration process; (vi) assist in identifying possible local CBOs/NGOs and other relevant service providers that can provide added value in cooperation with the Social Facilitator; (vii) review the ToR of the public awareness campaign; (viii) support finalizing the strategy for the public awareness campaign, including the preparation and testing of the messages to be relayed and materials to be prepared as part of the general public awareness campaign (together with the Social Facilitator and the company preparing the media and print products); (ix) support the planning and implementation of the community-based public awareness raising campaign specifically focusing on women (and other vulnerable groups) with the Social Facilitator Review the reports and guidelines on social and public awareness, and advise the PMU on further steps; (x) support the PMU in developing a training module on social aspects to be integrated in the technical training of all the project staff (TA, other PMU, demarcation team) prior to start up of the field work (in collaboration with other PMU staff and the Social Facilitator; (xi) ensure, in cooperation with the TA Team Leader, that relevant social, particularly gender related considerations, are integrated in the corporate and business planning process and in human resource development; (xii) participate in PLA staff training on social aspects; (xiii) prepare a report on the social aspects in the systematic registration process, including lessons learned and concrete recommendations for improvement (at end of assignment, with PMU); (xiv) conduct other tasks given by the Project Director; (xv) state land: Ensure that procedures are followed, as identified in the PIM, in relationship to state land. 58. Deliverables: She/he will be responsible for the following deliverables: (i) review of the ToR for the customer surveys and social studies; (ii) gender review of M&E system; (iii) review of the ToR of the Social Facilitator; (iv) work plan of the Social Facilitator; (v) review of the ToR of the public awareness campaign; (vi) strategy for the general public awareness raising campaign; (vii) review of corporate strategy and business plans from social/gender perspective, (viii) a report on inclusion of the social aspects in the systematic registration process; (ix) any other deliverables as agreed with the TA Team leader and Project Director. 59. Business Plan Advisor. Scope of Work: Under the direct supervision of the TA Team Leader and in cooperation with the PMU Project Director, entire PMU and with all other project stakeholders, the Advisor will: (i) prepare the ToR for preparation of PLA departmental business plans; (ii) prepare the first drafts and final reviews of the business plans; (iii) analyze the PLA‟s mandate and services provided, development strategy, work processes, documents and data available; (iv) review the PLA budget, including the subventions provided by government, fees collected for work implemented, salaries, operational costs and any other incoming and outgoing revenues; (v) based on the analysis above and the PLA‟s Institutional Assessment carried out during the first year of the Project, prepare together with the PLA management and the TA Team Leaders‟ draft Business Plan (BP) and the ToR for PLA annual departmental business plans; (vi) identify and recommend appropriate project management arrangements within PLA for elaborating the plans; (vii) review and assess the quality of the final draft of the BP; (viii) give recommendations and advise in implementation of the BPs. -32- 60. Deliverables: She/he will be responsible for the following deliverables: (i) ToR for the PLA annual departmental business plans; (ii) first drafts and final reviews of the Business Plans (BP); (iii) any other deliverables as agreed with the Project Director and TA Team Leader. 61. Geodetic Advisor.Scope of Work: Under the direct supervision of the TA Team Leader in Jerusalem and in cooperation with the PMU Project Director, entire PMU and with all other project stakeholders, the Advisor will: (i) provide the PLA with technical assistance to assess, develop and implement a geodetic network based on Global Navigation Satellite System (GNSS) technology and conduct the feasibility study for a Continuously Operating Reference System (CORS); (ii) develop and adopt geodetic control standards to provide a minimum set of requirements, which need to be met when establishing improved or updated geodetic control networks and CORS; (iii) assist the Survey Department in the design of a CORS system and prepare the technical specifications for establishment of three stations of the CORS in the West Bank; (iv) supervise the contractor selected for installing the CORS and provide quality control of the implementation. (The establishment of the CORS system is subject to funds available); (v) prepare a plan for an improved/updated geodetic control network (with a particular focus on the survey control needs for future systematic registration work) and assist with implementation of this plan; (vi) design a training program for PLA survey staff and other users of the CORS; (vii) provision of guidance on establishment of quality control systems and practices for geodetic survey work; (viii) assist in the development of a business plan for the use of the CORS to ensure that the ongoing maintenance and use of the system is fully funded. This will include the preparation of a schedule of proposed user fees and plans for future extension of the CORS system, assessing the feasibility of integrating the PLA CORS system with similar systems utilized in other countries, the identification of staff and resources required for operating the PLA CORS system, training requirements and the budget for the first 5 years operation. 62. Deliverables: She/he will be responsible for the following deliverables: (i) design of a CORS system and the technical specifications for establishment of base stations; (ii) review of the geodetic control standards; (iii) a plan for an improved/updated geodetic control network; (iv) draft Business plan for the use of the CORS; (v) all other deliverables agreed with the Project Director and TA Team Leader. 63. Social Facilitation Team. Scope of Work: Under the direct supervision of the TA Team Leader and the Systematic Registration Advisor and in cooperation with the PMU and its Project Director and with all project stakeholders, the Social Facilitation Team will: (i) assist in developing and testing the feasibility of messages of the general public awareness campaign together with the PMU and the company selected to prepare the campaign materials. The main emphasis of the campaign will be on the systematic registration process and mechanisms available for complaints and dispute resolution, the importance of systematic land registration in general and particularly as an opportunity for women and other vulnerable groups to claim their rights. Messages will be channeled through TV, radio spots, posters, leaflets etc; (ii) develop and carry out a community-based awareness campaign synchronized with the work of the technical teams. This includes: a) holding informative workshops in the area prior to start up of the technical work on systematic registration process (purpose; timing; process; claim procedures etc.), including social aspects (encouragement for women and other vulnerable groups to claim their rights); b) disseminating the materials/messages developed as part of the public awareness -33- campaign; c) holding separate workshops (or meetings, focus group discussions) targeting women (and other vulnerable groups) to encourage them to claim their right to land ownership (e.g. by using local NGOs/CBOs as channels to reach women); (iii) ensure that in the unlikely event occupants are found on state lands, they are made aware of Palestinian state laws for dealing with occupants on state lands; (iv) provide expertise on legal aspects and social facilitation during the technical field work and further in the process as required. This will include the provision of independent legal aid to socially or economically vulnerable individuals, who require assistance in filing claims or complaints, using locally accepted mediation procedures when possible, in order to ensure a fair and equal legal process; (v) prepare periodic progress reports and work plans; prepare annual progress reports on the inclusion of the social aspects identifying best practices and lessons learned; and prepare annual work plans; (vi) prepare a final report on inclusion of the social aspects in the systematic registration process including lessons learned and concrete recommendations for improvement (at end of assignment). 64. The Social Facilitation Team should select a team of 3-4 experts: legal (lawyer), social (preferably sociologist), community-based public awareness (degree in media studies). The experts should preferably be natives/residents of the project area, i.e. Dura in the first phase and other areas in the next phases. This may imply changes in team composition after the first two years of the project, when the project moves to the subsequent geographical area(s). -34- Annex 3: Implementation Arrangements Project Administration Mechanisms Overall Project Management 1. The project will be implemented in its entirety by the PLA, through a Project Management Unit (PMU). The PMU will consist of the Project Director, a Finance officer (who is a staff member of the PLA‟s Finance Department), and Individual Consultants including a Procurement Officer, a Social/Public Awareness/Community Participation Specialist, a Translator/Administrator and an IT Specialist on a full-time basis as well as 2 Software Developers, a Human Resource Development and Training Specialist, and a Technical Translator as required by the needs of the project. 2. The Project Director is appointed by the PLA and reports to the Chairman of the PLA. The Project Director is responsible for leading and organizing the overall work activities and teams, guiding and monitoring project implementation, procurement, financial management, annual plans, and overall coordination with the World Bank and the Government of Finland. 3. The PMU would act as the main coordinating and executive body of the Project responsible for the fulfillment of the following activities: (i) project administration, implementation and management; (ii) planning and budgeting; (iii) procurement; (iv) financial management in coordination with PLA finance department; (v) project monitoring and evaluation; (vi) community outreach and social development regarding the SLR activities; (vii) reporting; (viii) coordinating with field offices with regard to field activities; (ix) coordinating periodic missions with the World Bank and the Government of Finland. The PMU would be supported by a Technical Assistance Team (TAT), financed through parallel financing provided by the Government of Finland (see Diagram 2). The TAT will be headed by the TA Team Leader, who will report to the PLA Project Director. 4. A Technical Support Team consisting of the Head of the Surveying Department, the Director of the Settlement Department, Director of the State Land Department and a Legal Advisor from the PLA will provide technical support and guidance to the PMU in managing all aspects of the project implementation. 5. A Project Steering Committee, consisting of the PLA, the Ministry of Finance, and the Ministry of Planning and Administrative Development will be established as a monitoring and strategic decision making body for the project (including the TFGWB, co-financed and parallel financed activities) to meet at the conclusion of each supervision mission. However, the Government of Finland will have monitoring and decision making powers over the parallel financed, in co-ordination with the Project Steering Committee activities. Local Level Project Management 6. Land Advisory Group: Within each identified area (eg. Dura area for Phase 1) one Land Advisory Group will be established. This group will consist of representatives from the Joint Services Council (as the administrative coordinator for villages and project committees targeted -35- by the project), municipalities in the targeted area, the law society (nominated by the lawyers‟ syndicate), a minimum of two civil society NGOs with one representing women, the property tax department of the Ministry of Finance and others by invitation. The PLA will chair the Group and act as its Secretariat. The Local Advisory Group will meet quarterly to provide feedback and advice for project activities. 7. Settlement Team: Within an identified area (eg. Dura area for Phase 1) a Settlement Team will be established. It will be headed by a Settlement Officer, appointed by the PLA, and will also consist of PLA officials seconded to the work of the project, contracted individuals hired by the PMU including legal assistants, registration and adjudication officers, surveyors, draughtsmen and administrative assistants, (public sector team), a Settlement Court Judge and assistants (settlement court team) and multiple firms to assist mainly with the surveying work (Private Sector Team). The Settlement Team will be responsible for demarcation, collecting and reviewing documents, adjudication, surveying and cadastral maps and conducting the public displays of tables of rights and claims. 8. Social Facilitation Team (SFT): A social facilitation team will be established through the parallel financing from the Government of Finland. The social facilitation team will consist of at least three persons, including a lawyer, a training specialist and a social scientist. The team will be responsible for public awareness activities and legal support to vulnerable groups including women and also occupants found on state lands. Their work will be closely linked to that of the settlement teams as their activities will need to focus on the sites where systematic registration is taking place or planned. However, they will operate in parallel with the settlement teams so that they can provide independent advice and support, including legal assistance to those that feel aggrieved with the process or feel that their rights have not been taken into account. They will operate throughout the period of the project. However, the composition of the team may change to ensure sufficient local knowledge once the project moves to the next geographic areas. 9. Block Representatives: During demarcation, up to two (per block) local block representatives (preferably one male and one female) will be identified, with the assistance of the SFT, to assist in the demarcation process. 10. Land Committee: With the assistance of the SFT, a Village/Neighborhood Land Committee will be formed in conjunction with the Municipality/Village Council and will include the block representatives as members and should include 50% women representatives. The role of the Land Committee is primarily to assist in the resolution of disputes that could not be resolved during the demarcation. Financial Management, Disbursement and Procurement Financial Management 11. Project financial management and disbursement functions will be managed by the PLA through its Finance Department in close coordination with the Project Management Unit (PMU). The PMU will be responsible for the overall implementation of the proposed project activities in accordance with the Grant Agreement, Project Implementation Manual (PIM), and applicable -36- laws and practices. As such, the PMU will be responsible for contract management including the review and approval of consultants‟ deliverables, the receipt/inspection and acceptance of goods and for advising PLA on the release of their respective payments in accordance with the signed contracts. The PLA has limited experience with the World Bank FM and disbursement guidelines and procedures during the implementation of LAP-I in coordination with Ministry of Planning, which was closed in the year 2008. The PLA FM performance was satisfactory. A qualified Financial Officer from PLA own staff has been identified and will be working on a full time basis on the Project. Due to the limited knowledge of the Financial Officer on the World Bank FM and disbursement guidelines, adequate training will provided. 12. FM Related Risks: The following measures are to be taken to mitigate FM-related risks and are set forth in the PIM; (a) A qualified Financial Officer, from the PLA‟s own staff, will manage the project‟s FM and disbursement functions. (b) Adequate training will be provided to the Financial Officer on the World Bank FM and disbursement guidelines and procedures. (c) The project will be closely supervised during project implementation (see Annex 5 for details). (d) The PLA will maintain separate accounting records for each financier based on the co- financing arrangements. (e) An acceptable external auditor will be appointed and financed from TFGWB within six months of Project effectiveness as per Terms of Reference (ToR) acceptable to the Bank to audit the Project financial statements. The auditor will assess the effectiveness of Project‟s internal controls and verify whether the co-financing arrangements are implemented in accordance with the Grant Agreements. (f) MOF Financial Controller will review, and validate the accuracy of payments and their compliance with applicable laws and with Bank procurement and FM procedures as well as Grant terms and conditions. (g) All project FM procedures and internal controls are included in the FM manual prepared by the project as part of the PIM. 13. Budgeting and Funds Flow: The PLA‟s PMU will maintain project budget and detailed disbursement plans. The budget will be developed based on an initial procurement plan and revised as needed and will be analyzed by year and by quarter as part of the quarterly Interim Un-audited Financial Reports (IFRs). Project budget and detailed disbursement plans, acceptable to the Bank, have been prepared. To ensure that funds are readily available, two Designated Accounts (DAs) will be opened at the MoF under the central treasury system and will be operated and managed by the PLA; a U.S Dollar account for the World Bank funds and a Euro account for the Government of Finland funds. Deposits into the DA will be made in accordance -37- with the provisions stated in the Grant Agreement and as outlined in the Disbursement Letter and the World Bank “Disbursements Guidelines for Projects�. Disbursement methods will include: advances, direct payments, and special commitments. The sole responsibility to disburse on behalf of the project to suppliers, contractors, consultants will vest in the PLA. On a monthly basis, the PLA Finance Officer will reconcile the project bank accounts statement with client connection and with the PLA books of records to ensure that all receipts and payments are properly monitored. Reconciliations will be reviewed by the MoF‟s Financial Controller. All reconciling items (if any) should be listed, explained and followed up on. Copies of the reconciliation together with the account bank statement should be kept in the project files. 14. Accounting & Reporting: The PA‟s accounting system (Bisan) will be used to account for, record, report and monitor the project accounts. Separate financial records will be maintained for each financier by configuring the system and opening a separate cost center for each financier. Project IFRs will not be generated automatically from the Bisan system but will be compiled manually using Excel spreadsheets. Transaction statements from the accounting system will be retained with the IFRs to provide an audit trail to the underlying documentation. The PLA Finance Department, in coordination with the PMU, will prepare the IFRs which consist of (i) statement of cash receipts and expenditures for the period, and cumulatively, by donor, along with explanations of significant variances between budgeted and actual amounts, and cash balances of the project; (ii) Statement of Designated Account reconciling period- opening and end balances; and (iii) Statement of project commitments, i.e., the unpaid balances under the project‟s signed contracts. The IFRs shall be submitted to the Bank not later than 25 days after the end of the reporting quarter. The IFRs format and content have been agreed on with the PLA. 15. Internal Control: The financial control function is provided by the MoF‟s Financial Controller based at the PLA. The proposed project related transactions will follow the PLA‟s financial procedures and internal controls complemented by the Bank‟s financial management and disbursement guidelines with respect to financial reporting requirements and disbursement procedures. The controls procedures include: (i) technical approval by the PMU (Procurement Officer, Project Director and the Head of local office, who is the Settlement Officer appointed by the PLA); (ii) PLA Finance Officer review and approval; (iii) MoF Financial Controller review and clearance to validate the accuracy of payments and their compliance with applicable laws and with Bank procurement and FM procedures as well as Grant terms and conditions; and (iv) each payment is signed by two authorized signatories. All project FM procedures and internal controls are included in the FM manual prepared by the project as part of the PIM. 16. External Audit: Project financial statements will be annually audited by a qualified independent auditor acceptable to the Bank, in accordance with internationally accepted auditing standards, and terms of reference (ToR) acceptable to the Bank. The audit will be comprehensive and cover all aspects of the project including all sources of financing and not only the portion related to the World Bank, and a review of Designated Accounts. The auditor will be requested to verify whether the co-financing arrangements were in accordance with the Grant Agreement and to assess the effectiveness of Project‟s internal controls. Deficiencies will be reported through a management letter. The audit report should be sent to the Bank not later than 6 months following the end of the project‟s fiscal year. The cost of the audit will be financed from the -38- Trust Fund. The project preparation advance (PPA) amount of US$238,000 was audited by a qualified auditor acceptable to the Bank. The auditor has issued an unqualified "clean" opinion on the audited financial statements and the Management Letter did not include any significant issues. The scope of the first year audit will include examining the PPA amount. 17. According to the World Bank Policy on access to Information issued on July 1, 2010, the audit report with audited financial statements of the Project will be made available to the Public. 18. Training and Implementation Support: The Bank will provide training to the PLA‟s PMU staff on Bank FM and disbursement guidelines and procedures. During the first year of implementation the bank will provide a close FM implementation support during project supervision which will take place 3-4 times a year. Disbursement Arrangements 19. The table below indicates the allocation of categories of eligible expenditures that may be financed out of the proceeds of the TFGWB Grant: Amount of the Grant Percentage of Expenditures Category Allocated (expressed to be Financed in US$) (inclusive of Taxes) (1) Goods, works, non-consulting services, and consultants‟ services, 1,715,000 100% audit and training under the Project (2) PLA Operating Costs 1,000,000 100% (3) PMU Operating Costs 47,000 100% Amount payable pursuant to (4) Refund of Advance 238,000 Advance Agreement TOTAL AMOUNT 3,000,000 20. Incremental Operating costs (IOCs) comprise: PLA IOCs: (i) Salaries and other expenditures (including field transportation) for up to 52 temporary PLA staff (non civil servants), including demarcation and surveying field crew and crew leaders, incurred on the account of component 1, (ii) local travel expenditures, including per-diem, for PLA regular staff , and (iii) Reasonable and necessary incremental expenditures related to PLA field offices rental, field offices maintenance and utility charges, communication costs, vehicle rental, vehicle insurance and maintenance, and vehicle petrol, incurred on the account of component 1. PMU IOCs: Reasonable and necessary incremental expenditures related to the PMU on the account of component 3 for office maintenance and utility charges, insurance costs, communication costs, office supplies and consumables, banking charges, printing and advertising, vehicle rental, insurance and maintenance, vehicle fuel, project related local travel, including per-diem, and other miscellaneous expenditures directly associated with the implementation of the project. Project implementation 21. Two Designated Accounts (DAs) will be opened at the MoF under the central treasury system and will be operated and managed by the PLA; a U.S Dollar account for the World Bank -39- funds with a ceiling US$ 250,000 and a Euro account for the Government of Finland funds with a ceiling of Euro 190,000. There will be no subaccounts under these designated accounts and reimbursements to PLA for payments made from its own resources will not be permitted under this project until adequate safeguards have been put in place to monitor accounts to which reimbursements would be made. 22. The disbursement methods will be: advance, direct payments, and special commitments. Withdrawal Applications submitted to the Bank will be prepared by PLA and signed by the authorized signatories at the MoF, prior to submission to the Bank for processing. The proceeds of the Grant will be disbursed in accordance with the Disbursement letter and in accordance with the Bank Disbursement Guidelines for projects. Transaction based disbursement will be used under this project. Authorized signatories, names and corresponding specimens of their signatures will be submitted to the Bank prior to the receipt of the first withdrawal application. For direct payments and special commitments above the “Minimum Application Size� as specified in the Disbursement Letter, Withdrawal Applications (WAs) will be submitted to the Bank for payments to suppliers and consultants directly. 23. Necessary supporting documents will be sent to the Bank in connection with contract that are above the prior review threshold, except for expenditures under contracts with an estimated value of (a) US$ 100,000 or less for Works (b) US$ 150,000 for Goods; (c) US$ 100,000 or less for consulting firms; (d) US$ 50,000 or less for individual consultants, as well as training and operating costs, which will be claimed on the basis of SOEs. The documentation supporting expenditures will be retained at the Project Management Unit and will be readily accessible for review by the external auditors and periods Bank supervision missions. All disbursements will be subject to the conditions of the Loan Agreement and disbursement procedures as defined in the Disbursement Letter. 24. Project Financing: The project will be co-financed by the World Bank and the Government of Finland. The World Bank contribution is US $3 million (estimated Euro 2.1 million) including a Project Preparation Advance of US$ 0.35 million, of which US$ 0.238 was utilized and the remainder cancelled, which was made available to the PA. The Government of Finland is contributing Euro 4.1 million (estimated US$ 5.744 million equivalent) towards the co-financing arrangements through a Trust Fund that will be administered by the World Bank and parallel financing of Euro 4.2 million (estimated US$ 5.8 million equivalent) for the International Technical Assistance services. During appraisal, co-financing arrangements were finalized between the World Bank and the Government of Finland. Procurement 25. Procurement of goods, works and non-consulting services shall be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works and Non- Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� published by the World Bank in January 2011. For the selection of consultants, the World Bank “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� published by the World Bank in January 2011 shall be used. Guidelines on “Preventing and Combating Fraud and Corruption in Projects Financed by IBRD -40- Loans and IDA Credits and Grants�, dated October 15, 2006 and updated January 2011, will also be applicable to the project. 26. The overall responsibility for the implementation of project procurement will rest with PLA, through the PMU, which would act as the main counterpart to the Bank for all procurement aspects of the project. In particular, all procurement notices and advertisements and all contracts with suppliers, service providers and consultants will be issued by PMU and signed by PLA Chairman. The PMU will also be responsible for contract management including the review and approval of consultants‟ deliverables and the receipt/inspection and acceptance of goods, and for the release of payments to the consultant/supplier/service provider in accordance with the signed contract. 27. The PLA Settlement Officer, located in the local field office, will be responsible for the daily monitoring of land surveying contracts by private sector service-providers as well as for supervising PLA contracted staff and for advising the PMU on the release of their respective payments in accordance with the signed contracts. 28. A Procurement Capacity Assessment for the PMU was carried out as part of project preparation and finalized during appraisal. The assessment evaluated the institutional capacity of PMU to implement procurement under World Bank Procurement Guidelines and reviewed the organizational structure for implementing the project. Furthermore, the assessment evaluated procurement risks and made recommendations on mitigation measures for efficient procurement under the project. 29. The assessment has concluded that PMU procurement and contract management capacity is limited and needs to be strengthened through support in terms of staffing, training and supervision in order to meet procurement implementation requirements for the project. The PMU Project Director does have previous experience implementing Bank Procurement. However, the PMU does not currently have procurement staff with appropriate knowledge of Bank Procurement and Consultants‟ Guidelines. Because of the nature of the project which entails the implementation of multiple interrelated tasks, and the interaction of various entities/teams at different organizational levels and geographic locations (central vs. field), PMU may be further challenged by coordination and decision-making which may delay project implementation. Procurement packaging and scheduling, particularly of the land surveying services, may encourage potential collusive practices among private sector firms. Such practices, coupled with a lack of proper understanding of the scope of services by private sector firms, and an over- estimation of the associated risks may all result in inflated bid prices. 30. The following is a summary of the agreed actions/ mitigation measures during Project preparation: (a) Procurement Staffing: A qualified Procurement Officer with adequate knowledge of Bank Procurement will be hired at PMU. The Procurement Officer will be responsible for processing all aspects of project procurement. PMU contract management capacity will be further strengthened through the International Technical Assistance Team on Systematic Land Registration, to be hired through the Finnish parallel financing. -41- (b) Procurement Procedures Manual (PM): As part of the Project Implementation Manual (PIM), the project implementation structure was established and the responsibilities of the various entities were defined. In addition, the PMU prepared a Manual of Procurement Procedures (PM) (as an Annex to the PIM) which details the procedural requirements that PMU would follow to manage procurement and contract management under the project. A final PM will be approved by the Bank before Negotiations. (c) Procurement Training: Procurement training will be provided to PMU staff and concerned staff from the PLA departments, on the use of the PM in order to ensure that full capacity is in place. The training, which will take place immediately after effectiveness, will focus on the project procurement arrangements and will provide detailed explanations on the critical steps of the procurement process. (d) Draft Bidding Documents and ToRs: To ensure project readiness for implementation immediately after effectiveness, the PMU has prepared draft bidding documents for the main contracts for Goods and Non-consultants services to be implemented during the first 18 months of project implementation. Draft ToRs for the main consultancy assignments were prepared and are annexed to the PIM. It is expected that the bidding documents will be revised to incorporate the Bank‟s comments, prior to Negotiations. (e) Procurement Packaging: Procurement packaging, particularly of the land surveying services, has been determined to allow for wide competition based on private sector structure and capacity and shall be revisited as necessary throughout project implementation. (f) Orientation sessions to private sector service providers: The PMU will undertake orientation sessions in order to better familiarize land surveying firms with the bidding documents, procedures and requirements, as well as the scope of work and performance specifications. This orientation could take place as part of pre-bidding conferences or in separate sessions to be organized with relevant associations after effectiveness. 31. The procurement risk rating for the project is Substantial. Land surveying services by private sector firms constitute the main contracts to be financed under the project. Other envisaged procurement include: office furniture, IT and office equipment and total stations and GPS‟s under Goods, office rehabilitation under Works and PMU consultants, a public awareness campaign, interior design and audits under Consultants‟ Services. A procurement plan (PP) for the first 18 months of project implementation (including the co-financing from the Government of Finland) was prepared and agreed with the Bank during appraisal and summarized below. The PP was developed based on unit costs agreed during the mission. It specifies the procurement packages, estimated cost, methods and schedule, taking into consideration the project implementation schedule, the capacity of the local service providers and the PLA procurement and contract management capacity. The PP will be updated at least annually or as needed to reflect actual project implementation needs and will specify the source of financing for each contract. -42- Summarized Procurement Plan I. General 1. Project Name: GZ Second Land Administration Project 2. Period covered by this procurement plan: first 18 months II. Goods, Works and Non-consulting services A. Procurement Methods and Prior Review Thresholds: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement: Category Method of Threshold Prior Review Threshold Procurement (US$ Equivalent) (US$ Equivalent) Goods ICB No threshold First two contracts and thereafter all contracts above US$1,000,000 NCB <500,000 First two contracts Shopping <100,000 First contract Direct Contracting No threshold All contracts Non-consulting ICB No threshold First two contracts and thereafter all Services contracts above US$1,000,000 NCB <500,000 First two contracts Shopping <100,000 First contract Direct Contracting No threshold All contracts Works NCB <2,000,000 First two contracts Shopping <200,000 First contract Direct Contracting No threshold All contracts B. Summary of the Procurement Packages planned during the first 18 months after project effectiveness Goods: 1 2 3 4 5 Ref. Description Procurement Domestic Review No. Method Preference by Bank (yes/no) (Prior / Post) 1. Supply Total Stations, GPS Units NCB No Prior and Ancillary Equipments and Supply Mapping Software 2. Supply IT Equipments, Servers, NCB No Prior Software and Office Equipments 3. Supply Record Storage Cabinets NCB No Post 4. Supply Stationary for Field Office NCB No Post 5. Supply Furniture for Field Offices Shopping No Prior -43- Works: 1 2 3 4 5 Ref. Description Procurement Domestic Review No. Method Preference by Bank (yes/no) (Prior / Post) 1. Modernization of the first PLA S No Prior Regional Office 2. Modernization of the second PLA S No Post Regional Office Non-consulting Services: 1 2 3 4 5 Ref. Description Procurement Domestic Review No. Method Preference by Bank (yes/no) (Prior / Post) 1. Land Surveying of 20,000 urban NCB (5 lots) No Prior dunums 2. Land Surveying of 36,000 rural NCB (5 lots) No Prior dunums 3 Land Surveying of 34,000 rural NCB (5 lots) No Post dunums III. Selection of Consultants A. Selection Methods and Prior Review Thresholds: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants: Category Selection Method Threshold Prior Review Threshold (US$ Equivalent) (US$ Equivalent) Consulting QCBS/QBS No threshold First two contracts selected under each of the two Services Firms methods and thereafter all contracts above U$500,000 FBS/CQS/LCS <200,000 First contract selected under each of the three methods Sole Source No threshold All contracts Individuals IC No threshold First two contracts and thereafter all contracts above U$200,000 Sole Source No threshold All contracts B. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than U$300,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. -44- Consultancy Assignments with Selection Methods and Time Schedule Ref. No. Description of Assignment Selection Review Method by Bank (Prior / Post) 1. Public Awareness Campaign FBS Prior 2. Interior design for one PLA Regional Office CQS Prior 3. Social baseline/Customer Satisfaction Survey per contract QCBS Prior 4. Financial Audit LCS Prior 5. Procurement Officer IC Prior 6. Other PMU Officers (multiple) IC Post 32. The Bank‟s prior review thresholds were set based on the existing procurement capacity and the identified procurement risks. In addition to prior review, the Bank will carry out at least two supervision missions per year during which a close follow up and quality control of procurement /contract management matters will be maintained. A post procurement review of contracts which are not subject to the above prior review requirements shall be conducted once a year. The procurement post reviews should cover at least 20 percent of contracts subject to post review. Complete procurement documentation for each contract, including bidding documents, advertisements, bids received, bid evaluations, letters of acceptance, contract agreements, securities, related correspondence etc., will be maintained by PMU in an orderly manner, readily available for audit. 33. For National Competitive Bidding, the following additional procedures shall apply: (a) public enterprises in parts of the West Bank and Gaza under the jurisdiction of the Palestinian Authority shall be eligible to participate in bidding only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the Palestinian Authority; (b) foreign bidders shall be eligible to participate under the same conditions as local bidders. In particular, no preference over foreign bidders shall be granted to local bidders in bid evaluation; (c) invitations to bid shall be advertised on at least two (2) consecutive days in a local newspaper of wide circulation, and prospective bidders shall be allowed a minimum of thirty (30) days between the date on which the notification appears for the first time and the deadline for bid submission. With the specific approval of the World Bank, this minimum period of 30 days may be reduced to a minimum period of 10 days in the case of emergency operations; (d) until standard bidding documents acceptable to the World Bank have been introduced by the PA, the standard bidding documents of the World Bank shall be used; (e) qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and only criteria so specified, shall be used to determine whether a bidder is qualified. Bids of bidders not meeting such criteria shall be rejected as non-qualified. -45- The fact that a bidder meets or surpasses the specified qualification criteria shall not be taken into account in the evaluation of such bidder‟s bid; (f) evaluation criteria shall be clearly specified in the bidding documents, and all evaluation criteria other than price shall be quantified in monetary terms. All evaluation criteria so specified, and only criteria so specified, shall be used in bid evaluation. Merit points shall not be used in bid evaluation; (g) if classification of contractors is required, contractors that have not yet been classified but meet the required qualifications shall be enabled to obtain the necessary classification during the bidding procedure. Any contractor that has been classified in a class higher than the lowest class shall not be restricted to bidding in his own class but shall be eligible also to bid in any lower class; (h) bids shall be submitted in sealed envelopes and shall be accepted whether mailed or hand-carried; (i) bids shall be opened in the presence of bidders who wish to attend, and immediately after the deadline for bid submission. Said deadline, and the place of bid opening, shall be announced in the invitation to bid. The name of each bidder, and the amount of his bid, shall be read aloud and recorded when opened in the minutes of bid opening. The minutes of bid opening shall be signed by the members of the bid opening committee immediately after bid opening; (j) bids received after the deadline for bid submission shall be returned to the bidders unopened; (k) a bid containing material deviations from or reservations to the terms, conditions and specifications of the bidding documents shall be rejected as not substantially responsive. A bidder shall not be permitted to withdraw material deviations or reservations once bids have been opened; (l) the bid evaluation shall be carried out in strict adherence to the criteria specified in the bidding documents, and the contract shall be awarded to the qualified bidder offering the lowest evaluated and substantially responsive bid; (m) a bidder shall not be required, as a condition for award, to undertake obligations not specified in the bidding documents or otherwise to modify his bid as originally submitted; and (n) there shall be no post-bidding negotiations with the lowest or any other bidder. Environmental and Social Issues: 34. Arrangements for mitigating social concerns are the responsibility of the PMU, with the assistance of the Social Specialist of the PMU and of the Technical Assistance Team. -46- Arrangements for social mitigation are integrated into the design of the project administrative arrangements. They include (i) the establishment of a Land Advisory Group; (ii) the integration of block representatives into the settlement team; (iii) the establishment of a social facilitation team. Monitoring and Evaluation 35. The responsibility for project M&E will be delegated to the PMU. The PMU Project Director, with assistance from the Technical Assistance Team, will have the overall responsibility for data collection from within the PLA and at the field levels, aggregation, and periodic reporting on project implementation progress and in meeting the project‟s overall Development Objective as measured through the Key Performance Indicators. 36. For the purpose of project monitoring, the PMU, supported by the Technical Assistance Team, will maintain a simple M&E system, including auxiliary data storage tools (based on MS Office software), for data collection, output dashboards and outcome monitoring, in order to ensure proper monitoring, reporting, and evaluation of project performance. The PMU Director will organize the tasks of data collection and aggregation by the relevant parties at the field implementation levels. 37. Progress reporting at the PMU level: The PMU will report, as follows: (a) Semi-annual Progress Reports outlining project progress in achieving the PDO and implementation progress will be submitted to the World Bank and the Government of Finland within 45 days of the end of 6-month intervals of each calendar year. The Semi- annual Progress Reports would include an update on the Results Framework indicators (Annex 1). Each second Semi-annual Progress Report in a calendar year would present progress on a cumulative basis. The reports would be input to the joint supervision missions. (b) IFRs will include a status update as part of the Interim Unaudited Financial Reports (IFRs), which are submitted within 45 days from the end of each calendar quarter. The status update will include an update on the Component/Intermediate Indicators in the Results Framework (RF). (c) 18-month Project Review Report will document the results of the 18-month evaluation of the project activities from the start of the SLR process with a focus on Component 1 of the Project. The results of this Review will inform the Mid Term Review of the Project. (d) Mid-Term Evaluation report would be due immediately before the MTR mission (about 30 months after project effectiveness). The outline and contents of the MTR will be agreed with the financing partners in advance. The MTR will serve as a basis to evaluate component and management performance of the project at its mid-term life and inform any necessary changes going forward. -47- (e) An ICRR will be prepared by the PMU within 6 months after the closing of the project, to be submitted to the World Bank and the Government of Finland. 38. Progress and financial reporting of the parallel financed Technical Assistance: The technical assistance component will adhere to the Government of Finland‟s MFA reporting requirements and guidelines. Parallel reporting requirements will however be kept to a minimum, and the quarterly reports of the PMU shall cover as far as possible also the inputs of the TA team. ROLE OF PARTNERS 39. The Project is co-financed by the Government of Finland. The Government of Finland will also provide parallel financing for the International Technical Assistance Team. 40. The World Bank and the Ministry of Foreign Affairs, Finland, will carry out joint supervision missions every 4-6 months, as outlined in Annex 5: Implementation Support Plan. The joint supervision missions will monitor the progress on the project. The Statement of Mission Objectives (SMO) and the timing of the missions will be agreed with all parties (PLA, WB and MFA) preferably 2 months prior to the planned missions. At the end of each mission a draft Aide Memoire will be presented at the wrap-up meeting where all competent authorities, including the Project Steering Committee will be invited. The final joint Aide Memoire including recommendations for a way forward, list of agreed actions, changes and amendments to the work program etc will be agreed by all parties. 41. A diagrammatic representation of Project Administrative Arrangements and its relationship to the Joint Supervisions is below. -48- Diagram 1: LAP-II: Organizational Structure Palestinian Authority (PA) Palestinian Land Authority Project Steering Committee Joint WB – MFA Supervision - MOPAD Representative Missions - PLA Representative - MoF representative - Gov. Finland representative (observer for WBGTF/co-financing TF, decision maker for parallel financed activities) - World Bank (observer) Technical Support Team (TST) Project Management Unit (PMU) headed by - Director: PLA the Project Director (PD) Surveying Dept - Director: PLA (See diagram 2 for details) Settlement Dept - Director: State Land \ Department -Legal Advisor Land Advisory Group Social Facilitation Team - PLA (Chair – Secretariat) - Lawyer - Chairpersons of JSCs - Social Scientist - Mayors of beneficiary - Trainer municipalities Local Level Settlement Team - Rep. Law Society - PLA Settlement Officer - Min 2 NGOs, including 1 for - TAT Systematic Registration Advisor women - TAT JPO - Others, by invitation - PLA Assistant Settlement Officer Block Representative - 4 PLA Quality Control officials (surveyors). - 1 to 2 for each block - PMU contracted staff (legal assistants, registration, demarcation officers, surveyors, cartographers, etc..) - Including Private Sector Surveyors Village/Neighborhood Land Committee - Neighborhood/village representatives (50% women) - 1 to 2 block representatives - Settlement court (Judge and assistants appointed by the Higher Judicial Council.) -49- Diagram 2: LAP-II: Project Management Unit (PMU) Structure and the Technical Assistance Team (TAT) PMU Project Director (PLA) PMU Staff contracted through the World Technical assistance team/staff contracted Bank TF through the parallel financing - Procurement Officer - Social/Public Awareness and Community -Team Leader/Institutional Development Advisor Participation Specialist - Systematic Land Registration Advisor - IT Specialist - HRD and Training Advisor - Software Developer (2) - IT Advisor - HRD & Training Specialist - Social Advisor - Translator/Project Assistant - Business Plan Advisor - Technical Translator - Geodetic Advisor - Junior Professional Experts (Systematic Registration, TBD during MTR) - Social Facilitation Team (public awareness expert, training expert, lawyer) -50- Annex 4: Operational Risk Assessment Framework (ORAF) West Bank and Gaza: Second Land Administration Project (LAP-II) (P105403) Stage: Board Project Stakeholder Risks Stakeholder Risk Rating Low Description: Risk Management: Changes in Government lead to changes in priorities and affects strategic choices Land registration is included in the Palestinian National Development Plan (2011-2013). The Team will undertake continuous dialogue with the PA to ensure that the issue remains on the policy agenda. Resp: Bank Stage: Implementation Due Date: Ongoing Status: In Progress Implementing Agency Risks (including Fiduciary) Capacity Rating Substantial Description: Risk Management: The PLA does have systems in place to carry out SLR work (PLA have been implementing SLR in the Bethlehem area). However, work and cost efficiency is The PLA will hire consultants for the PMU, and temporary staff to carry out the SLR process and will also be assisted by poor. Furthermore, the PLA does not have all the required human resources to the Finnish Bi-Lateral TA team. manage the project. A Procurement Officer with adequate knowledge of Bank procurement will be hired. PLA has limited procurement and contract management capacity. Procurement A Procurement Officer with adequate knowledge of Bank procurement will be hired. packaging and scheduling may encourage collusive practices PLA settlement officer will be designated to monitor land surveying contracts by all service providers. Procurement packaging will provide for competition. Manual of Procurement Procedures (as part of the PIM) prepared and procurement training will be provided to the project team PLA has limited capacity in managing World Bank FM requirements. PLA will assign a Finance Officer to work with the PMU Furthermore, there is a risk of overlapping funding support Staff will be trained in bank FM procedures PLA will retain separate accounts for each financier and financing is to be disbursed in accordance with an agreed set of activities for each financier. Audit TORs will include verification of implementation of co-financing arrangements Strict disbursement procedures are in place. Governance Rating Substantial Description: Risk Management: Facilitation payments can occur when registering sporadic transactions due to: (i) Risks will be addressed (with the assistance of the parallel financed TA) as follows: (i) the development of a vision slow process of completing registration and undertaking valuation; (ii) public statement, performance standards and business plan; (ii) public awareness campaign; (iii) provision of complaints access to „back office‟ decision makers; and (iii) lack of public understanding of mechanisms; (iv) computerization and improvements to office practice will help to reduce the time taken for registration. the registration process & standards. It also places a distance between the customer and the „back office‟ decision makers; (v) training plan will include instruction on improvements and addressing public expectations. -51- Facilitation payments may also be requested during systematic registration. The process of systematic registration is well protected from facilitation payments through (i) open public meetings during demarcation; (ii) public viewing period ; (iii) a grievance redressal system where objections and complaints can be heard both by the settlement officer and the settlement judge; (iv) presence of a SFT which will ensure all parties are aware of their rights and will monitor the process of systematic registration on behalf of the more vulnerable members of society and take up their cases if needed. There are risks of making payments for fictitious employees, paying inflated The project transactions will be subject to pre-verification from the MoFs Financial controller; rates, and/or making payments for false travel claims Project annual FS will be audited by an external auditor appointed on a competitive basis and according to TOR acceptable to the Bank; TOR will include verifying whether the co-financing arrangements are done according to the Agreements and will assess internal controls; A FM policies and procedures Manual was prepared as part of the PIM and includes all applied procedures and internal controls. Resp: Client Stage: Implementation Due Date: Ongoing Status: In Progress Project Risks Design Rating Substantial Description: Risk Management: The targets assume a speed of registration that the PLA have not accomplished Parallel financed TA will finance two international advisors to assist in meeting targets previously in their own financed SLR work. However, the proposed targets are 3-4 supervision missions have been proposed during the first year of implementation. below usual international standards. An 18 month project review is proposed prior to the MTR to undertake an in-depth review and analysis of the implementation of the SLR process Resp: Client Stage: Implementation Due Date: Implementation Status: Not Yet Due Social and Environmental Rating Moderate Description: Risk Management: Key social risks include : While the LAP-II does not trigger the Bank‟s Operational Policy 4.12 on Involuntary Land Acquisition and Resettlement, The main safeguards related risk would be potential eviction of encroachers an array of due diligence measures to mitigate risk was carried out including through the preparation of a legal found on state lands (which is only an estimated one percent of LAP-II sites) memorandum, a Social Assessment Exercise, and field based investigations on existing cases of encroachments and how during the land registration process. these are dealt with. This panoply of measures combined with the LAP-I experience all point to a low-risk scenario. Encroachments on unregistered state lands is rare, and if found, the PA favors providing recourse to the illegal occupants (proof of continued use of land is most often sufficient evidence of ownership for the courts and oral testimony or the approval of neighbors/community members can be equally as valid as written legal documents provides an additional degree of support to claimants who might be vulnerable-elderly, widows, illiterate- or who may have lost paperwork through circumstances beyond their control. In the unlikely event that disputes arise in state lands, the Project Implementation Manual (PIM) outlines clear procedures for identifying occupants on state lands and compensating non land assets for persons evicted from project state lands. Additional protections built into the project design include (a) a full time three person social facilitation group, which includes a lawyer, to provide advice and guidance on all issues relating to the project activities and whose mandate includes taking up the cases of vulnerable persons; (b) local land committees to mediate in disputes; (c) a specialized settlement team of experts that helps to resolve cases with the land committee involvement; (d) a 30 day public viewing period that allows people to review the decisions and object if they consider them wrong; and (e) a Settlement Judge appointed by the Supreme Court to hear the objections raised. -52- There will be initial consultations with the clans prior to the start of implementation. This would be followed by targeted interaction with the clans, as required, throughout the duration of the project. The projects detailed dispute resolution mechanisms would also assist in mitigation the risk of non-acceptance by communities. This will be mitigated through a gender-sensitive public awareness campaign and implementation arrangement, e.g. block representatives, comprising one woman and one man, who will work with the demarcation team for transparent and Lack of implementation support by the local community especially if the project accountable land ownership and boundary information, and though their targeted participation in the registration of their is not accepted by the strong clan structure in the Dura area. lands. Inadequate attention to women‟s rights in a culture that has traditionally been male dominated. Resp: Client Stage: Implementation Due Date: Ongoing Status: Not Yet Due Program and Donor Rating Low Description: Risk Management: The Technical Assistance for the project will be provided by Finnish Parallel TORs have been discussed with the PLA and the Bank during missions and are included in Annex 2 financed TA. There is a risk that the TA teams do not meet the required There will be Joint Supervision Missions between Finland and the World Bank standards. There is a risk of overlapping of funding support Separate financial records will be maintained for each financier Resp: Client Stage: Both Due Date: Implementation Status: In Progress Delivery Monitoring and Sustainability Rating Substantial Description: Risk Management: There is a risk that the PLA will not be able to meet cost efficiency requirements Parallel financed TA will finance two international advisors to assist the PLA in managing the SLR process. that would allow the SLR process to be implemented across all of the West Bank. There is a risk that owners would not register subsequent transactions. The PLA have already significantly reduce this risk as, in June 2009, the Irrevocable Power of Attorney which is a key mechanism used in unregistered land transactions was made valid for one-time use only, if it relates to land already registered with the PLA, and for which a title exists. The Bank will request the PA to restrict any use of the IPA in the Project Area. Resp: Client Stage: Both Due Date: Ongoing Status: In Progress Resp: Client Stage: Implementation Due Date: Implementation Status: In Progress Other Rating Moderate Description: Risk Management: Fees for court petitions are perceived as an obstacle to registration. Legal assistance is provided to vulnerable people, Public awareness campaign will ensure that all community members are aware of their rights. Speculation by powerful persons is possible There will be community input into boundary designation. Resp: Client Stage: Implementation Due Date: Implementation Status: In Progress Overall Risk -53- Implementation Risk Rating: Substantial Description: The PLA is familiar with SLR. However, increased cost efficiency and work efficiency is required in ensuring targets are met. -54- Annex 5: Implementation Support Plan 1. Joint Supervision Missions: The World Bank and the Ministry of Foreign Affairs (MFA), Finland will carry out joint supervision missions every 4-6 months (with a proposal to hold these missions in 3-4 month intervals during the first year of LAP-II implementation). The joint supervision missions will monitor the progress on the World Bank financing, the co-financing from the Government of Finland and the parallel financing provided by the Government of Finland. The Statement of Mission Objectives (SMO) and the timing of the missions will be agreed with all parties (PLA, WB and MFA) preferably 2 months prior to the planned missions. At the end of each mission a draft Aide Memoire will be presented at the wrap-up meeting where all competent authorities, including the Project Steering Committee, will be invited. The final joint Aide Memoire including recommendations for a way forward, list of agreed actions, changes and amendments to the work program etc will be agreed by all parties. The joint supervision missions will assist in mitigating the project risk related to the fact that the International Technical Assistance, which is crucial to the project, is entirely financed in parallel, albeit by the Government of Finland, who are also providing a substantial project co-financing. 2. The joint supervisions missions would also allow for required policy dialogue with the PA, in the event of changes to PA policy or changes in the PLA (identified as risks in the ORAF) to be conducted jointly by both partners. This would strengthen the dialogue. 3. Skills for Supervision: The following skills are required for the adequate supervision of the project: (a) Task Team Leader (TTL): In addition to ensuring adequate supervision, the TTL would be required to ensure a sound relationship with the financing partner and would also be required to ensure continuous dialogue with the PLA. This would mitigate the impact of possible changes in leadership or policy direction from the PA and PLA, and also ensure co-ordination with the parallel financed TA. During preparation, the presence of a West Bank and Gaza based TTL positively influenced the preparation process. (b) Land Specialist is required for the duration of the project. Tasks relate primarily to Component 1. The Specialist will also input into the further design on the SLR program to be rolled out in West Bank and Gaza, improvements in service standards, assessment of the extension of the CLRS, feasibility study for the CORS, and project monitoring. A qualified Specialist will assist in the mitigation of the risks related to targets, and the performance of the parallel financed TA team. (c) Land Information Technology Specialist is required primarily for the update of the IT Strategy, design and extension of the CLRS, and for input into the CORS feasibility study. (d) Land Institutional Development Specialist is required primarily to examine tasks relating to Component 2. Component 2 is financed largely by the Finnish parallel financing and it is expected that this specialist will be financed through the MFA as part of the supervision of the parallel financed activities. The presence of this specialist will assist in the meeting of the PDO indicator as it relates to improved customer satisfaction. -55- (e) Procurement Specialist will ensure compliance of World Bank procurement guidelines. (f) Financial Management Specialist will ensure compliance of World Bank FM guidelines. (g) Social Specialist will be required for short missions for the duration of the project. Tasks relate primarily to the monitoring of the social mitigation measures that will be put in place in Component 1. The Social Specialists will also comment on the design of the Customer/Social Survey in year 1 and year 5. (h) M & E Specialist will be required primarily at the start of the project to comment on the project M & E systems setup and to comment on the design and implementation of the Social Satisfaction/Customer Surveys in years 1, 3, and year 5. Other: The Government of Finland will provide additional experts for project supervision and monitoring as the need arises. I. Supervision Plan Time Focus Skills Needed Resource Estimate Partner Role (MFA) First twelve Project Launch TTL fifteen weeks/WB & Timely Hiring of TA months G based Systematic Land Land Specialist four weeks, 3-4 Comments on SLRP Registration Missions Baseline Survey M & E Specialist 2 weeks, desk Comments on survey review and overall M&E arrangements at the Project level Social Facilitation and Social Specialist three weeks, 3-4 Assessment of the Public Awareness missions qualifications of the Social Facilitation Team Institutional four weeks, 3-4 Land Institutional Assessment missions Development Training Specialist Procurement Procurement three weeks, 3-4 Specialist missions Financial Management FM Specialist three weeks, 4 missions 12-48 months Project Overall TTL twelve weeks in year Supervision of Supervision two for 18 month bilateral TA review and MTR. Ten weeks per year subsequently Systematic Land Land Specialist four weeks, 3-4 Comments/input into -56- Registration missions in year two. 18 month review and Two missions per MTR year subsequently Monitoring of Social Social Specialist three weeks in year Assessment of the Facilitation 2, 2 weeks performance of the subsequently Social Facilitation Team Second M & E Specialist two weeks; One Comments on survey Social/Customer week desk review, and overall M&E Satisfaction Survey one mission in systems setup Year 3 IT Strategy Land IT Specialist three weeks per year, Land Institutional Design of CLRS 2-3 missions per year Development Expansion of CLRS Specialist CORS Feasibility Corporate Strategy, three to four Land Institutional Annual Business Plans, missions per year Development Public Relations and (Joint) Specialist HRD Improved Service Land Specialist as part of supervision Land Institutional Standards, Regional Land IT Specialist missions Development office renovations Specialist Procurement Procurement 2.5 staff weeks, 2 Specialist missions Financial Management FM Specialist 2.5 staff weeks, 2 missions Project End Customer M & E Specialist one mission, two Service/Social Survey weeks of staff time -57- II. Skills Mix Required Skills Needed Number of Staff Weeks Number of Trips Comments TTL 50 weeks 14 trips TTL should be WB & G based for the first 2-3 years Land Administration 17 weeks 14 trips More SW and trips may be Specialist required in the first 24 months Land IT Specialist 12 weeks 10 trips Social Specialist 14 weeks 14 trips More SW and trips may be required in the first 24 months M & E Specialist 6 weeks 2 trips Procurement 5 weeks Financial Management 5 weeks III. Partners Name Institution/Country Role Land Institutional Finland Management of Development Specialist Technical Assistance Consultants and the Social facilitation M&E Specialist Team. Focus on Component 2. Social Specialist -58- Annex 6: Team Composition Table 1: World Bank staff and consultants who worked on the project: Name Title Unit Soraya Goga Senior Urban Specialist (Task Team MNSUR Leader) Lina Abdallah Operations Officer MNSUR Lina Tutunji Procurement Specialist MNAPR Majd Laisoon Financial Analyst STC Nadi Mashni FM Specialist MNAFM Khalida Al Qutob Program Assistant MNC04 Gavin Adlington Lead Land Admin Specialist ECSS3 Pirkko Poutiainen Gender Specialist ARD Sabine Beddies Sr. Social Scientist MNSSO Nina Bhatt Sr. Social Development Specialist MNSSO Hana Salah Social Development Consultant MNSSO Deepali Tewari Sr. Municipal Development Specialist MNSUR Keith Bell Sr. Land Policy Specialist EASER Tracy Hart Sr. Environmental Specialist MNSEN Nikolai Soubbotin Sr. Counsel LEGEM Aissatou Diallo Sr. Finance Officer CTRLA Sylvie Pittman Consultant MNSSD -59- Annex 7: Social Issues and Safeguards 1. Background: Land is a key natural resource with fundamental importance to economic activity and development. In the West Bank, land has particular significance. Following a long history of Israeli occupation and movement and access restrictions, the West Bank territory is fragmented with substantial parts of its land inaccessible to Palestinians, particularly Area C which is about 60% of the West Bank. These combined factors have severely hampered Palestinian economic activity. Many Palestinians came to rely heavily on informal, key local structures, i.e. family networks, religious organizations and party political organizations, to conduct economic transactions. These informal social institutions complement or often replace the formal state entities in performing important economic functions, such as formal land registration. 2. Findings of the Social Assessment (2011): The findings of a Social Assessment conducted in 2011 as part of project preparation informed the projects approach to participation and outreach, dispute resolution and to several risks mitigation measures. These are outlined below. 3. Systematic beneficiary participation and outreach: Dura‟s clans, project beneficiaries and civil society organizations need to be actively engaged from the project start and throughout all project stages, through social reference committees which represent communities and also include trusted and respected individuals. Public awareness activities need to be systematic and comprehensive. They should include legal processes/procedures, written notification of land owners, especially women, poor, disabled, and absentees. Key actors to be included in the activities are municipalities, village councils, farmer committees, agricultural societies, and women committees/ societies. Absentee landowners were an obstacle for registration in Bethlehem, and outreach campaigns need to also address these landowners. 4. Dispute resolution: The Dura area has a history of resolving disputes informally through a tribal justice system – over 90% of cases involving disputes over land are resolved informally. Disputes mainly arise regarding land borders, inherited land among male family members, and absentees and focus on land shares not ownership rights. Community dispute resolution committees should be formed that consist of respected persons, elders, clan members to benefit from experience in dispute resolution and assist with claim formulation to reduce the number of false claim. 5. Additional areas of concern: Marginalization of women in Dura‟s male dominant culture, which puts high pressure on women to sign over their land to their male family members during registration, may limit women‟s land rights. If this is addressed through a women targeted, well- designed and implemented public awareness campaign, the project can provide an opportunity for women to actively participate in the registration of their land. Land speculation by powerful and informed people could address the project. This can, however, be mitigated through a well- designed public awareness campaign. 6. Project Design and Social Concerns: Project design has attempted to take into account each of these concerns, as elaborated below. -60- 7. Gender Issues. The projects public awareness campaign will specifically address women‟s participation in the systematic land registration process. This would include targeting public meetings and focus groups at women. Gender equality and rights of vulnerable groups will also be a cross-cutting theme in the institutional strengthening of the PLA and taken into account the formulation of different strategies and plans. 8. Dispute resolution and protection of the vulnerable. A Social Facilitation team will be recruited using Finnish TA funding in order to provide training and support to the local community in the Project Areas. The team will operate throughout the period of the project and will work in parallel to the demarcation teams. They will be responsible for holding local training and information activities for the public. They will hold separate meetings for men and women, distribute leaflets and posters and provide advice to people whenever requested. The team will include a lawyer, a social scientist and a trainer – thus enabling authoritative advice to be given and support to be provided when the rights of vulnerable people are not being protected. 9. During the course of systematic registration, block representatives, (preferably one woman and one man), will provide advice to the demarcation team, helping to ensure that owners or their representatives are honestly advising on ownership and boundary information. If disputes arise, the demarcation team will refer the case back to the Settlement Officer, who will provide a senior team, including a senior lawyer and a senior surveyor, to work with the local land committee to solve the dispute by mediation. The land committee will be comprised of representatives from the clan, local government and the local community as appropriate for the location. If mediation does not work, the case will go to the Settlement Officer for resolution according to the established procedure outlined in the law and the Settlement Manual (SM). If necessary appeals can be made to the Settlement Judge and then the high court as provided for in the law. 10. Opportunities and impacts. Overall, the social development impacts of this project are expected to be positive. The project funds systematic registration of land in areas with currently no updated land records, and high levels of land ownership informality. It also comprises public awareness, communication, and community participation activities. The project will contribute to the generation of significant social development outcomes, including (i) increased tenure security, including for women; (ii) strengthening of women‟s land right and social status; (iii) increase households access to mortgage finance; (iii) generation of economic opportunities to invest and construct in formally registered land; (iv) developing of formal land market with opportunities to develop pro-poor housing options; (v) communication, outreach and citizen participation for increased public awareness of rights and responsibilities, services to be provided by the PLA (vi) enhanced citizen satisfaction with the services provided by PLA in the Project Area, measured through a Social/Customer satisfaction baseline survey during year 1, a repeat in year 3 of the project and a final one during year 5 of the project, and (viii) building of public trust in the system and alignment of informal social institutions -on which many Palestinians rely on - with the formal state entities designated with formal land registration. 11. Social Safeguards: The LAP-II does not trigger the Bank‟s Operational Policy 4.12 on Involuntary Land Acquisition and Resettlement. The main safeguards related risk would be the potential eviction of encroachers if found on state lands. State lands constitute only an estimated -61- one percent28 of phase 1 LAP-II sites thus the risk of encountering encroachers has been assessed as negligible. The Bank carried out an array of due diligence measures during preparation leading to the conclusions that the overall risk vis a vis social safeguards issues is low. This assessment was based on a series of reports and interviews and is outlined below. 12. An Evaluation of laws and procedures governing encroachment on state land. Findings of the January 2012 Legal Memorandum on Palestinian State Laws for Dealing with Occupants on State Lands includes significant differences between how encroachers on registered and unregistered state lands are addressed. For unregistered lands (which is what concerns the LAP- II), the State applies Law No. 40 of 1952, which places the onus on the PA (rather than the occupant) to prove their ownership rights. This will make potential evictions of encroachers/ squatters on publics land for the LAP-II project unlikely. If found on unregistered lands, the memorandum shows that squatters have fairly strong protection. For unregistered land, proof of continued use of land is most often sufficient evidence of ownership for the courts. Oral testimony, approval of neighbors and the community can be as equally valid as written legal documents under this law. Such measures provides an additional degree of support to claimants who might be vulnerable (elderly, widows, illiterate) or who may have lost paperwork through circumstances beyond their control. 13. A social assessment exercise, including field investigations reviewing the extent of illegal occupancies on state lands. A Social Assessment (2011) was carried out as part of the due diligence and risk mitigation measures. The Social Assessment findings support the 2012 Legal Memorandum by showing through field data that encroachers, if found on unregistered state lands, are rarely evicted. It was also confirmed with the Chairman of the PLA that there are no known instances of relocating illegal occupants from unregistered state lands because in part of the Palestinian principal of avoiding the forced displacement of populations. For LAP-II in Phase 1, there are only a few cases of potential illegal occupation. In fact, only 8 case numbers have been identified, one of which is one family (including cousins, brothers, etc.) with 6 cases, for a total of 13 cases. For these cases, initially Law No. 40 of 1952 will be applied, which, as described above, places the onus on the Palestinian Government (rather than the occupant) to prove ownership. It should also be noted that the PLA‟s experience in land resettlement in the pilot systematic land registration executed in Betunia, Bir Nabala and Qarawt Bani Zeid villages as part of LAP-I and an on-going cadastral survey and land registration in Bethlehem area shows that no instances of dislocating illegal occupants was evident.29 14. In addition to evidence pointing to a low-risk scenario based on case study materials, the Social Assessment and interviews conducted by the Bank with established Palestinian land scholars shows there are high degrees of local knowledge regarding land rights and regimes and there are an array of informal mechanisms to address land disputes exists should they arise. Such informal but accepted practices, combined with the comprehensive formal systems in place have reportedly resulted in rare instances of land trespass and infringement both by the PA and by individuals. As mentioned above, the exact locations of the state lands for Phase I of the LAP-II is known and it is estimated that only around 1% of the phase 1 Project Area is state land 28 This figure is based on the known locations of the state lands for Phase I of LAP-II. 29 Rassem Khamaisi and Team. Draft Resettlement Policy Framework. Pg. 45, June 14, 2011. -62- and consists of mainly barren and uninhabited public lands. This was confirmed in discussions with the Chairman of the PLA. 15. A robust project level grievance redress mechanism. As detailed elsewhere in the PAD, the LAP-II has a strong project level grievance mechanism in place which allows for disputes to be resolved in a mutual amicable way, limiting the possibility of relocation. Additional protections built into the project design include (a) a full time three person Social Facilitation Team, which includes a lawyer, to provide advice and guidance on all issues relating to the project activities and whose mandate includes taking up the cases of vulnerable persons; (b) local land committees to mediate in disputes; (c) a specialized settlement team of experts that helps to resolve cases with the land committee involvement; (d) a 30 day public viewing period that allows people to review the decisions and object if they consider them wrong; and (e) a settlement judge appointed by the Supreme Court to hear the objections raised. 16. Procedure to address State Land Occupation: In the unlikely event that disputes arise in state lands, the PIM outlines clear procedures for identifying occupants on state lands and providing compensation for lost assets, resettlement allowances and assistance to reestablish incomes and standard of living. -63-