The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) @#&OPS~Doctype~OPS^blank@pidaprpfrcoverpage#doctemplate Program Information Document (PID) Appraisal Stage | Date Prepared/Updated: 26-Apr-2024 | Report No: PIDPA00099 Apr 26, 2024 Page 1 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) @#&OPS~Doctype~OPS^dynamics@pidaprpfrbasicinformation#doctemplate BASIC INFORMATION A. Basic Program Data Project Beneficiary(ies) Region Operation ID Operation Name Program for Results to LATIN AMERICA AND Scale up Multipurpose Colombia P181163 CARIBBEAN Cadaster implementation in Colombia Financing Instrument Estimated Appraisal Date Estimated Approval Date Practice Area (Lead) Program-for-Results 16-Apr-2024 24-Oct-2024 Urban, Resilience and Land Financing (PforR) Borrower(s) Implementing Agency Ministry of Finance and Instituto Geográfico Public Credit Agustín Codazzi, IGAC Proposed Program Development Objective(s) The PDO is: (a) to improve the effectiveness of the National Cadaster System and (b) to increase the geographic coverage of the Multipurpose Cadaster. @#&OPS~Doctype~OPS^dynamics@pidpfrprojectfinancing#doctemplate COST & FINANCING (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? No SUMMARY Government program Cost 500.00 Total Operation Cost 451.40 Total Program Cost 450.27 Other Costs (Front-end fee,IBRD) 1.13 Total Financing 451.40 Financing Gap 0.00 FINANCING Apr 26, 2024 Page 2 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) Total World Bank Group Financing 100.00 World Bank Lending 100.00 Total Government Contribution 351.40 @#&OPS~Doctype~OPS^dynamics@pidaprdecision#doctemplate Decision The review did authorize the team to appraise and negotiate B. Introduction and Context 1. Colombia is among the top five most unequal countries in the world in terms of land concentration and remains one of the most unequal countries in terms of income. The Income inequality in the country is the highest among all OECD countries and the second highest among 18 LAC countries, even more so after the COVID-19 crisis.1 The Gini coefficient of household income reached 0.54 in 2020, and the pandemic economic shock increased inequality further, pushing the coefficient up and pulling 3.6 million more people into poverty. In terms of land distribution, Colombia is even more inequitable; with a Gini reaching levels of 0.88,2 about 81 percent of private land is concentrated in the top 1 percent of farms and occupies about 70% of the productive land.3 Territorial inequalities are also high, leaving many people disconnected from critical services and opportunities. 2. Land concentration is a historical structural problem that gave rise to internal armed conflict more than half a century ago. The conflict has caused the largest internal population displacement in the world, with almost 7 million people—mainly from peasant, indigenous, and Afro-descendant communities—forcibly displaced from their homes and dispossessed of at least 6 million hectares of land. After nearly fifty years of conflict and six years of negotiations, in 2016, the Government of Colombia and the FARC guerilla movement signed a Peace Agreement. This agreement included commitments to address the social and economic issues that fueled the conflict, including land tenure through a Comprehensive Rural Reform. 3. Land distribution and the implementation of a Comprehensive Rural Reform were the first issues addressed, discussed, and approved in the Peace Agreement. The Comprehensive Rural Reform lays the foundation for the structural transformation of the countryside: greater inclusion at a regional level, eradication of poverty, greater equality, and, as a result, the end of the conflict and eradication of violence. The unresolved issue of land ownership, as the historical cause of the conflict, is essential to fulfilling the commitments of the Comprehensive Rural Reform and requires the adoption of measures to promote the appropriate land use, value, and development in accordance with its suitable purposes and to stimulate the titling, restitution, and equitable distribution. By guaranteeing progressive access to rural property, rural women, and the most vulnerable communities, legalizing and 1Building an Equitable Society in Colombia, World Bank, 2021. 2 International Land Coalition, 2011. 3 Unearth, Land Power and inequality in Latin America, Oxfam 2016. Apr 26, 2024 Page 3 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) democratizing property, and promoting broader ownership of land, the Comprehensive Rural Reform creates the conditions for building a stable and long-lasting peace. Country Context 4. The Multipurpose Cadaster implementation across the country is key to fulfilling the commitments of the Peace Agreement - Comprehensive Rural Reform, but also a critical component of the National Development Plan 2022 – 2026 "Colombia World Power of Life". In Colombia, a high percentage of outdated cadaster information has impacted land administration negatively. As of 2019, only 6% of the entire country's territory had updated cadastral data. In 2024, due to the GoC cadaster policy and the Multipurpose Cadaster Project (P162594), cadaster data is updated in 12.6% of the country. Despite this progress, there is still a need to increase scalability.4 Outdated cadasters have negative fiscal impacts on municipalities and worsen regional inequality through underperforming property taxes. Municipalities rely heavily on financial transfers from the national government with limited scope for decision-making on spending. Poor land administration creates the conditions to perpetuate the armed conflict but also poses significant obstacles, including legal land tenure insecurity, weak territorial planning, low property tax mobilization, unproductive land use, and poor prioritization and implementation of strategic public investments. The implementation of a Multipurpose Cadaster across Colombian territory is key for the current national government to accomplish the commitments of the Peace Agreement and strengthen subnational capacity for territorial planning and fiscal collection. 5. Land administration, particularly the Multipurpose Cadaster implementation across the territory, is an issue of strategic and utmost importance in the national policy agenda in Colombia, given its comprehensive benefits: a. To enhance Land Tenure security: Multipurpose Cadaster is the first condition to establish a formal land market, which is essential to avoid conflict, enabling the business environment and promoting investment. b. To optimize Land Use and Development: Multipurpose Cadaster enhances territorial planning by connecting land ownership, value, use, and development and articulating land use with its vocation and economic potential. c. To capture Land Value: Multipurpose Cadaster promotes regional development and strengthens subnational governments by increasing fiscal revenues from property tax collection. Its implementation also allows the adoption of Land Value Capture instruments to optimize revenues, reducing the territorial entities' dependency on national transfers. d. To adapt to climate risks: Multipurpose Cadaster allows for the creation of an updated inventory of natural protected areas. It contributes to tackling deforestation by monitoring and curbing land change use and promoting sustainable land use. Updated land information can also inform disaster risks national systems. Sectoral and Institutional Context 6. Over the past few years, the institutional capacity for Multipurpose Cadaster implementation in Colombia has been substantially strengthened, contributing to synchronizing the interventions of IGAC and relevant government agencies. The Multipurpose Cadaster Project (P162594) prioritized (i) institutional strengthening and capacity building through standardization of cadastral and land tenure formalization procedures and technical 4 National Strategy for the Cadaster implementation Public Policy – CONPES 3958, DNP 2019 https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/3958.pdf Apr 26, 2024 Page 4 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) requirements; (ii) implementation of the Multipurpose Cadaster in predominately early-development and peace agreement prioritized municipalities. (iii) development of a participatory approach sensitive to women and ethnic communities, (iv) standardization of land administration under the ISO LADM Col model that provides a modern and interoperable governance framework for all institutions with competencies, (v) strengthening of cadastral decentralization, (vi) modernization of the regulatory framework in line with the updated technical requirements, standards and procedures, (vii) introduction of improvements in the governance framework of the Colombian Spatial Data Infrastructure - ICDE to integrate all official sectoral information layers under Multipurpose Cadaster standards, as well as the densification of the geodetic network, and, (viii) the conclusion of the Free, Prior and Informed Consent process with indigenous and afro-descendant communities in line with the International Labor Organization (Convention 169/1989) for protecting collective land tenure rights (approx. 30% of the Colombia area). 7. The proposed Program for Results (PforR) will build on a robust country agenda and a strong collaboration between the World Bank and the Government around Land Administration and Urban and Rural Development. The PforR complements several lending and advisory WB-supported ongoing engagements such as: (i) the ongoing "Multipurpose Cadaster Project" (P162594) IPF, (ii) the Additional Financing MPC operation financed by the United Kingdom to strengthen the capacity of environmental authorities to implement the MPC in environmentally protected areas, (iii) CiuDATA, an analytical engagement financed by the Swiss government (SECO) that seeks to enhance the capacities of six prioritized municipalities for the management and maintenance of cadastral data, land- based instruments, and tax administration, (iv) Fondo Biocarbono and GEF-Corazon Amazonía, that aims to reduce deforestation, using updated land information to achieve sustainable land management, (v) the Intercultural School of Geography for Life, to strengthen the capacity of communities and their organizations to participate in the cadastral operation, with the support of the GIZ. Additional projects currently being prepared by the Agriculture, Urban, Water, Infrastructure, and Governance Global Practices will also be potentially complemented and informed by this PforR Cadaster operation. 8. The proposed PforR contributes to scaling up the implementation of the Multipurpose Cadaster to fulfill the National Development Plan 2022 – 2026 goal, which contemplates going from 9.63% to 70% of the area with cadaster conformation. Building on the institutional capacities and lessons learned acquired by the national Government and aiming to scale up the Multipurpose Cadaster implementation across the country, the PforR targets the identified obstacles to scaling up the Multipurpose Cadaster policy implementation across the territory, thus fostering the achievement of lagged key development indicator results. Updated cadastral information will provide legal and social security, as well as guaranteed access, use, and regularization of property, reducing conflict and violence related to land and protecting the rights of men and women in poverty. 9. The Multipurpose Cadaster implementation shows aspects in which the Government still needs to improve efficiency and effectiveness at national and subnational levels to achieve a comprehensive and fully functional National Cadaster System. The PforR will leverage the results achieved by the Multipurpose Cadaster implementation relying on the Institutional Strengthening Capacities acquired by the national government, the robust regulatory framework developed, and the enhanced infrastructure and systems for capturing cadaster data implemented to address: (i) better use of ICT systems in local governments to conform and maintain the cadaster efficiently, (ii) scaling up cadaster implementation, especially in lagging regions, such as Amazonia, Orinoquía, and the Pacific, and (ii) improving participatory execution and decentralization. Apr 26, 2024 Page 5 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) PforR Program Scope Table 1. PforR and Government program boundaries Government program PforR Details Objective National Development Plan To improve the effectiveness WB financing will prioritize expanding the "Colombia World Power of of the National Cadaster cadaster data coverage, access to cadaster Life" and Peace Agreement. System and (b) to increase conformation, and uses of cadastral data the geographic coverage of for urban and territorial planning, land the Multipurpose Cadaster. taxation, and disaster risk management, and will not be used to support the establishment of the Land Fund, land expropriation, land recovered in favor of the Nation, and land purchasing. Duration 2017-2031 2025-2028 Geographic Nationwide Targeted municipalities Priority engagement for the WB in conflict- coverage (79.800.000) (about 20'000.000 hectares) affected areas, economically lagging regions, and areas that have traditionally been objects of natural capital loss. Results Cadaster conformation and PDO1. To improve the Partial alignment: World Bank support will areas improvement property effectiveness and not be provided for improved property taxation. sustainability of the National taxation. WB will support systematic Cadaster System cadaster surveys, on-demand cadaster conformation and maintenance; land PDO2. To increase valuation; capacity strengthening of geographic coverage of rural subnational governments; and and urban Multipurpose participatory processes with attention to Cadaster the protection of women's and ethnic groups' land tenure rights. Establishment of the Land -- Non-alignment: High social risk activities Fund. that might increase social tensions or result in involuntary resettlement: land expropriation, land recovered in favor of the Nation, and mechanisms for promoting access to land (Comprehensive purchase subsidy/land purchases) Large-scale titling of small and -- Non-alignment: Complex institutional and medium-sized rural property. regulatory framework currently under political discussion and high sensitivity. Overall PforR: US$ 451,4 M US$ 100 M WB will finance 22% of the Government Financing program during the proposed period. Multipurpose Cadaster Policy: US$ 2 billion Apr 26, 2024 Page 6 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) C. Proposed Program Development Objective(s) Table 2. PDO and DLI indicators PforR Results Framework Unit of Objective-Outcome Indicator DLI # measurement PDO Level indicators Objective 1/Outcome. To Percentage of cadastral maintenance procedures improve the effectiveness % timely addressed according to regulation of the National Cadaster Objective 2/Outcome. To Area with updated cadaster - % increase the geographic Percentage of land rights tenure holders with gender coverage of the % data captured according to regulation multipurpose cadaster Intermediate results indicators Area of Result 2: Hectares with updated cadastral cartography DLI 1 Hectares Increasing the geographic Hectares with Land Capability Classification data DLI 2 Hectares coverage of the multipurpose cadaster CORS stations in operation DLI 3 # Stations Area of Result 1: Certified people from local entities, communities, Improving the and social organizations trained around DLI 4 # People effectiveness of the multipurpose cadaster and intercultural geography National Cadaster System for life *The PDO level indicator for Objective 1 is a WB task team proposal to be verified by IGAC Program Development Objective(s) The PDO is: (a) to improve the effectiveness of the National Cadaster System and (b) to increase the geographic coverage of the Multipurpose Cadaster. D. Environmental and Social Effects Apr 26, 2024 Page 7 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) 10. ESSA concludes that the Program presents a moderate environmental risk and a moderate social risk. The institutional setup has the potential to develop the capacity required to address potential environmental risks and challenges. The environmental risks of the Program are reasonably covered by the regulations and institutional capacities of Colombia but will require attention to address other environmental challenges that arise from (i) the generation of WEEE in the sphere of the Multipurpose Cadastre motivated by the obsolescence of devices and equipment increasingly used in cadastral activities; (ii) The Occupational Health and Safety of operators who carry out outdoor work. (iii) Energy consumption. 11. The ESSA results confirm that the Government of Colombia's current systems to manage the environmental and social aspects of the Program have solid foundations in a robust legal framework. Additionally, the ESSA findings identified an acceptable general level of regulation and implementation for WAEE management, although it is not possible to verify homogeneity in RAEE management at the Departmental levels, especially in those with unfavorable socioeconomic indicators. IGAC has a procedure for the integrated management of conventional waste or waste with usable potential and a matrix for identifying environmental aspects and impacts, as well as instructions on "Hazardous and Special Waste Management and Environmental Emergency Plan. 12. The Program has a low probability of any negative social impact. No land acquisition is anticipated, as the Program is not compatible with any construction. The main environmental recommendations are focused on establishing and strengthening mechanisms to address energy efficiency, based on purchases with energy savings certification, evaluation of long-term obsolescence, facility planning, etc. Additionally, advance programming, coordinated and consulted with other Government of Colombia areas outside the IGAC, is recommended given that special permits may be required (for example, in PNNC), weather alerts, or incidents that could limit operations. Likewise, planning must consider the social aspects of using drones to avoid conflicts over the privacy of people and institutions, as well as carrying out surveys in conflict zones. E. Financing Program Financing (Template) Source Amount (US$, Millions) % of Total International Bank for Reconstruction and Development 100.00 22.15% (IBRD) Counterpart Funding 351.40 77.85% Borrower/Recipient 351.40 77.85% Total Program Financing 451.40 Apr 26, 2024 Page 8 of 9 The World Bank Program for Results to Scale up Multipurpose Cadaster implementation in Colombia (P181163) @#&OPS~Doctype~OPS^dynamics@contactpoint#doctemplate CONTACT POINT World Bank Ivonne Astrid Moreno Horta Senior Land Administration Specialist Borrower/Client/Recipient Ministry of Finance and Public Credit Implementing Agencies Instituto Geográfico Agustín Codazzi, IGAC Gustavo Marulanda Director contactenos@igac.gov.co FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects @#&OPS~Doctype~OPS^dynamics@approval#doctemplate APPROVAL Task Team Leader(s): Ivonne Astrid Moreno Horta Approved By Practice Manager/Manager: David N. Sislen 20-Aug-2023 Country Director: Mark Roland Thomas 26-Apr-2024 Apr 26, 2024 Page 9 of 9