The World Bank Report No: ISR14200 Implementation Status & Results Philippines LAND ADMINISTRATION AND MANAGEMENT II PROJECT (P073206) Public Disclosure Copy Operation Name: LAND ADMINISTRATION AND MANAGEMENT II PROJECT Project Stage: Implementation Seq.No: 18 Status: ARCHIVED Archive Date: 31-Mar-2014 (P073206) Country: Philippines Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Department of Finance Key Dates Board Approval Date 31-May-2005 Original Closing Date 31-Mar-2011 Planned Mid Term Review Date Last Archived ISR Date 21-Oct-2013 Effectiveness Date 11-Oct-2005 Revised Closing Date 31-Mar-2014 Actual Mid Term Review Date 11-Apr-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are to increase land tenure security and improve land administration services through the implementation of institutional and legal reform, the realization of an accelerated land titling program, and the establishment of a fair and uniform property valuation system. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. Development of Land Policy and Regulatory Framework 2.30 Component 2. Institutional Development and Capacity Building. 3.89 Component 3. Security of Land Tenure 21.51 Component 4. Property Valuation 5.02 Component 5. Project Management 5.84 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Implementation Status Overview The Project Development Objective (PDO) has been satisfactorily achieved and most of the revised project targets have been full attained. Page 1 of 11 The World Bank Report No: ISR14200 The two project implementing agencies, the Department of Environment and Natural resources (DENR) and the Department of Finance (DoF) have successfully put in place the requisite legal and technical requirements to proceed with the mainstreaming of critical reforms to land administration, valuation and real property taxation. The project has successfully partnered with 49 LGUs in the Provinces of Leyte, Bohol and Bukidnon (including 11 for LGU-assisted titling) and three cities for valuation and real property taxation Public Disclosure Copy (RPT). All project targets for land registration and land valuation/taxation have been met. Significantly, the project prepared the Land Sector Development Framework (LSDF), which sets out the land sector strategy until 2030, and this was endorsed by government. The LSDF also incorporates the Road-ap for Valuation and RPT reform, which was also approved by government. The project's social agenda is also enabling significant success in resolving long-standing family disputes over land inheritance. The Project was restructured, which involved revising the Results Framework and Monitoring, including: (a) several PDO indicators were revised; and (b) some PDO indicators which either could not be measured within the life of the project or were not fully attributable to the impacts of the project were dropped. The project restructuring was approved in October 2010 with a loan fund cancellation of US$3.63 million due to the decrease in titling activities as a result of delays in the passage of the Residential Free Patent Act (Republic Act No. 10023), as well as the decision not to construct one-stop-shops for land administration services delivery in Bohol and Bukidnon Provinces. The project will close on March 31, 2014. Although Additional Financial for the project had been prepared, it will now not proceed as the government was unable to meet its internal authorization requirements in order to be approved by the World Bank. Of particular note the achievements of the project for public land records management and also land valuation and RPT collection by local government is ready for mainstreaming, which was to have occurred under Additional Financing. Further, local government unit led land titling is proceeding on a national basis under the government's own resourcing. DENR has now advised that those activities that were to be funded under Additional Financing, will now be fully covered under their own government funds. In fact, activities at the National Capital Region (Metro Manila) have been started early this year to serve as pilot for the Land Administration Management System roll out nationwide. DENR will request the full local funding in the 2015 Government's Appropriations Act and will aim to complete the whole country for the next 3 years, as had been planned under Additional Financing. It is expected that a further request may be submitted to the Bank later in 2014 to support a new project, the third phase of LAMP. DENR has advised that a third phase would focus on the "land management" part of the Land Sector Development Framework. The aim is to have an integrated land management approach. On the DOF side, it is expected that the valuation reforms in a pilot province and some additional cities will be the focus. DENR and DOF would like to discuss proposals with the Bank team during the April-May LAMP2 mplementation Completion and Results (ICR) mission. Locations Country First Administrative Division Location Planned Actual Philippines Not Entered Naga City Philippines Eastern Visayas Province of Leyte Public Disclosure Copy Philippines Not Entered Iloilo City Philippines Ilocos Province of Ilocos Norte Philippines Northern Mindanao Province of Bukidnon Philippines Central Visayas Province of Bohol Philippines Eastern Visayas Eastern Visayas ✔ Philippines Bicol Bicol ✔ Page 2 of 11 The World Bank Report No: ISR14200 Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Strengthened perception of land tenure security Percentage Value 50.00 82.00 80.00 Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments Low confidence on the Proxy measure is Proxy target is 80%. system. Experience from participation: 80% Proxy measure is participation. LAMP LIL was To date 82% community 50% community participation . participation. This was was Low public awareness confirmed during the finalization of the Project Paper for Additional Financing. Only 10% titles generated remain unclaimed.and baselinesfor Bohol and Bukidnon are at draft stage. Reduced incidence of conflicting claims in the Percentage Value 25.00 project areas Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments Up to 1/4 of the respondents Dropped under AF and also Target has no specific % to have conflicts under project restructuring be achieved. agreed at MTR. Increase in diversification of incomes Percentage Value Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments EMPLOYMENT (On-farm Dropped under AF and also Increase has no specific % employment; off-farm under project restructuring target to be achieved. employment; non-farm agreed at MTR. employment); # It is not attributable FARM BUSINESS; to this project. There are too Public Disclosure Copy NON-FARM BUSINESS many variable factors to (wholesale/retail business; attributeincreased investment manufacturing; community, inland property development social, recreational & personal to LAMP2. services; transportation & communication; forestry, mining & quarrying); OTHERS (remittances from abroad; local remittances; pension, retirement, benefits; rental income; interest Page 3 of 11 The World Bank Report No: ISR14200 earnings, dividends, capital gains; inheritance; winnings from games of chance); # OTHERS Public Disclosure Copy Increased investment in land property Percentage Value development Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments About 30% of the total Dropped under AF and under Increase has no specific % respondents have investment project restructuring agreed target to be achieved. in land property development MTR. # Investment may vary It may not attributable to this but mostly it is amounting project. There are too many toless than P50,000 variable factors to attributeincreased investment in land property development to LAMP2. Increase in land values Percentage Value 6.00 Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments It is recognized that titled This indicator cannot be Increase has no specific % lands command higher land reliably measured. Dropped target to be achieved. values, are easier to sell and under AF and under project can be offered as collateral in restructuring agreed MTR. securing loans from formal sources . Comparative values between titled and untitled lands also show that among owners, titled lands are valued three times more than untitled lands. P29,744 to P4,950,000 . Prices of titled parcel is perceived by majority to be higher than the untitled Public Disclosure Copy parcel. Price difference between titled and untitled ranges from 6% to 41%. Land values range from Php135,000-Php210,000 perha . Increased satisfaction in land registration Percentage Value 33.00 90.00 Date 31-May-2005 22-Mar-2014 30-Sep-2013 Page 4 of 11 The World Bank Report No: ISR14200 Comments Thirty three percent of the Preliminary DIS results Increase has no specific % respondents have a positive indicated around 90%. target to be achieved. perception of the registration system, 51 percent has a Public Disclosure Copy negative opinion ofthe system while 21 percent opted not to answer the query. Increase in subsequent transactions registered Percentage Value 14.00 in OSS Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments Fourteen percent or 86 out of The OSS operations were Increase has no specific % the 612 titles have registered replaced by the government's target to be achieved. subsequent transactions after LARES project and the work the issuance of the OCT under LAMS. Thus no longer part of LAMP2. Decrease in informal and formal transaction Percentage Value costs in land registration process Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments An average cost of 7,118.5 This indicator was dropped Increase has no specific % was spent per application due to the extreme difficulty target to be achieved. of realistically being able to measure such an indicator - agreed at MTR. Increase in collectible revenue from property Percentage Value 120.00 and other land-related taxes Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments # Revenues from land Overall increases in all project Increase has no specific % transactions at the LGU level locations ranging from target to be achieved. (RPT) is deemed low largely 120-360% over the life of the due to incomplete cadastral project. survey and mapping, the non- declaration of property via tax declaration, high percentage of absentee land owners and lackluster support for tax Public Disclosure Copy mapping and information drive Reduced processing time in the land Percentage Value 400.00 registration process Date 31-May-2005 22-Mar-2014 30-Sep-2013 Comments range 6 months to 27 years Now 1.5 to 4 months. Increase has no specific % across the project areas. target to be achieved. Target popln with use or ownership rights Number Value 96560.00 102000.00 recorded as a result of the project Date 31-May-2005 22-Mar-2014 30-Sep-2013 Page 5 of 11 The World Bank Report No: ISR14200 Comments No baseline. 95% of target achieved. Balance cannot be achieved due to absent owners. However, this is a very good Public Disclosure Copy achievement. Land parcels with use or ownership rights Number Value 34519.00 recorded as a result of the project Date 31-May-2005 22-Mar-2014 31-Dec-2013 Comments No baseline as gender This was was confirmed No end target. disaggregated data not during the finalization of the collected until start-up of Project Paper for additional project. Financing. Land parcels with use/ownership rights Number Value 26516.00 recorded as a result of project-female Sub Type Date 31-May-2005 22-Mar-2014 Breakdown Comments No baseline as gender This was was confirmed No end target set. Core disaggregated data not during the finalization of the indicator only introduced in collected until start-up of Project Paper for additional 2013 project. Core indicator only Financing. introduced in 2013 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target DENR Departmental Administrative Oder Text Value Out of date survey manual DENR AO 98-12 (Survey (DAO) 98-12 (Survey Manual) revised and Manual) revised/updated adopted by Dec 31, 2006. 12/31/2006 Date 11-Oct-2005 22-Mar-2014 31-Dec-2006 Comments Old manual at start of project. Achieved. Revised manual , issued July 31, 2007 under implementation HRMD Strategy, together with appropriate Text Value No existing departmental Human Resource training, developed, adopted & implemented by strategy Management and June 30, 2006 Development (HRMD) Public Disclosure Copy Strategy, together with appropriate training, developed, adopted & implemented by June 30, 2006. Date 11-Oct-2005 22-Mar-2014 30-Jun-2006 Comments Achieved. Completed as part of the DENR Annual Planning Page 6 of 11 The World Bank Report No: ISR14200 process in May 2006. Under implementation Records Management Strategy prepared & Text Value Strategy was developed Records Management adopted by June 30, 2006 under LAMP 1 (LIL), but not Strategy prepared & adopted Public Disclosure Copy implemented Date 11-Oct-2005 22-Mar-2014 30-Jun-2006 Comments Achieved. Strategy was completed by end of LAMP1 and has been adopted since start of project. Community Participation Strategy prepared & Text Value Strategy drafted under Community Participation adopted by June 30, 2006 LAMP1 (LIL) but not Strategy prepared & adopted implemented Date 11-Oct-2005 22-Mar-2014 30-Jun-2006 Comments Achieved. Under implementation since completion Nov 3, 2007. Community participation rate of 80% in Text Value Baseline study to advise. Community participation rate systematic titling of 80% in systematic titling Date 11-Oct-2005 22-Mar-2014 31-Dec-2010 Comments Achieved. Minimum OSS service standards developed Text Value Basic standards developed Minimum OSS service and agreed, and monitoring system in place by under LAMP 1 (LIL). No standards developed, and June 30, 2006 monitoring system existed. agreed, and monitoring system in place Date 11-Oct-2005 22-Mar-2014 30-Jun-2006 Comments Achieved. OSS standards adopted Nov 30 2006. Internal monitoring system in place since same date. An effective M&E System is established by Mar Text Value Basic M&E system developed An effective M&E system is Public Disclosure Copy ch 31, 2006 for LAMP 1 (LIL) but not fully established implemented. Date 11-Oct-2005 22-Mar-2014 31-Mar-2006 Comments Achieved. LAMP2 M&E framework developed in June 2006. It is being implemented and continuously updated Page 7 of 11 The World Bank Report No: ISR14200 A public relations strategy is adopted by June Text Value No public relations strategy in A public relations strategy is 30, 2006. place. adopted Date 11-Oct-2005 22-Mar-2014 30-Jun-2006 Public Disclosure Copy Comments Achieved. Under implementation. 1. Strategy submitted in Nov 3, 2006. 2. Social Mobilization Strategy developed and finalized inJune 2007; approved with Bank recommendations in Aug 2007. Information materials developed & disseminated. Department Administrative Order on the Text Value No DAO in place DAO developed and adopted. management of government land developed Date 11-Oct-2005 22-Mar-2014 31-Dec-2010 and adopted by December 31, 2010 (covering Comments Achieved. Completed Sep one or two priority types of government land under DENR administration 2013. Department Administrative Order on Text Value Existing DAO in place DAO developed and adopted. Miscellaneous Sales Applications (MSA) Date 11-Oct-2005 22-Mar-2014 30-Jun-2009 revised by March 2009 and issued by June Comments Achieved. DAO 2009-05 2009 issued April 21, 2009. Under implementation Strategic Framework Plan outlining long-term Text Value No Strategy in place for land LSDF endorsed priorities for the Land Administration and Date 11-Oct-2005 22-Mar-2014 30-Jun-2010 Management Sector completed by March 2010 Comments Achieved. Land Sector and endorsed by NSC by June 2010. Development Framework (LSDF) approved by NSC Resolution No. 2010-01 Draft Land Administrative Code endorsed by Text Value No Land Administration Code Draft Code submitted to Public Disclosure Copy NSC by June 2010 and submitted to Congress exists Congress July 2010 Date 11-Oct-2005 22-Mar-2014 31-Jul-2010 Comments Achieved. Submitted Sep 2013. Education programs (academic and/or Text Value No course in place except for Two programs operational professional development) in at least 2 land surveying. academic institutions for land administration Date 11-Oct-2005 22-Mar-2014 30-Jun-2010 and management accredited and operational Comments Achieved. VSU commenced by June 30, 2010 Diploma in LAM July 2010. Page 8 of 11 The World Bank Report No: ISR14200 USURP upgraded existing Diploma and Masters in Urban and Regional Planning with inclusion of LAM , started Public Disclosure Copy July 2010 Valuation standards for taxation purposes Text Value No standards in place Standards adopted by DOF. prepared by June 2009 and adopted by DOF Date 11-Oct-2005 22-Mar-2014 31-Dec-2009 by Dec 31 2009 (DAO issued), and associated Comments Achieved. DOF AO signed by Associated guidelines issued valuation guideliens developed and issued by June 30, 2010. DOF Secretary Oct 2009 by June 30, 2010 Adopted by BSP and SEC One LGU adopts uniform valuation/appraisal Text Value No uniform standards in Two LGUs have adopted processes and completes LGU-wide property place. uniform valuation/appraisal appraisal by MTR and at least one more LGU processes. is ready to adopt LGU wide property appraisal Date 11-Oct-2005 22-Mar-2014 30-Jun-2010 by June 30, 2010. Comments Achieved. Completed in all Standards and procedures three pilot cities Naga (2008), adopted. Iloilo (2008) and Mandaue (2011). Education programs (academic and/or Text Value No valuation education One valuation education professional development) in at least a programs in place. program fully operational. academic institution for property valuation fully Date 11-Oct-2005 22-Mar-2014 30-Jun-2010 operational by June 30, 2010 Comments Achieved. Continuing Professional Education Program on Land Valuation instituted in May 2010 and offered since June 2010 by UPOU. Diploma andMaster#s Program on Land Valuation and Management instituted in UPOU in June 2011 and for offering starting in November Public Disclosure Copy 2011. First independent OSS monitor appointed by Text Value No monitors in place. First independent OSS September 30, 2008. Subsequent independent Monitor appointed. monitors to be appointed by no later than six Date 11-Oct-2005 22-Mar-2014 30-Sep-2008 (6) months after establishment of OSS in other Comments OSS Independent Monitor for sites. Leyte mobilized in September 2008; Final Report submitted in June 2009. Final Report for the 2nd roundof OSS Independent Page 9 of 11 The World Bank Report No: ISR14200 Monitor for Leyte was submitted on April 4, 2011. (Note: Final Report under review) Public Disclosure Copy 102,262 titles /tenure instruments to be issued Number Value 2000.00 96560.00 102262.00 under the project: PY1 (2006) 2,446; PY2 Date 11-Oct-2005 22-Mar-2014 30-Sep-2013 (2007) 7,854; PY3 (2008) 9,962; PY4 (2009) Comments Leyte: 0 PY1 2,446 If project is extended this may 38,000; PY5 (2010) 60,000 Bohol: 0 PY2 7,854 need to be revised. Bukidnon: 0 PY3 9,962 PCO will provide the data PY4 27,752 based on the Land Tenure PY5 15,126 Study PY6 13,794 PY3 9,962 Estimated titled: PY4 13,649 Leyte = 255,402 PY5 to date 8,625 Bohol = 299,538 Approximately 54% of the Bukidnon = 123,564 revised project target has been met. Estimated untitled: Leyte = 525,073 Bohol = 935,768 Bukidnon = 166, 542 (Land Tenure Study for LAMP, May 25, 2004) OSS established in each seelcted Province, Text Value Leyte only Three Provincial OSS City, or Municipality no later than 12 months Date 11-Oct-2005 22-Mar-2014 30-Sep-2013 after said Province, City or Municipality has Comments Completed in Leyte. For will change if number of been selected as per para 4 of Schedule 4 of the Loan Agreement Bohol and Bukidnon, project provinces further temporary OSS utilized. amended DENR-LRA Harmonization is pursuing co-location. Initial Socio-economic and environmental Text Value No baseline Impact assessment baseline by Sep 30, 2006 and second study, completed Public Disclosure Copy impact assessment by Dec 31, 2010 Date 11-Oct-2005 22-Mar-2014 30-Sep-2013 Comments Baseline completed. Impact assessment completed. Data on Financial Performance (as of 30-Jan-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P073206 IBRD-72980 Effective 31-May-2005 30-Jun-2005 11-Oct-2005 31-Mar-2011 31-Mar-2014 Page 10 of 11 The World Bank Report No: ISR14200 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P073206 IBRD-72980 Effective USD 19.00 15.36 3.63 15.36 0.00 100.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The project will close as scheduled on March 31, 2014, having made good progress in achieving its development objectives and targets. It is likely that the Bank will be requested to support a new project which would be expected to cover the key elements of what was to have been included under the now dropped Additional Financing. Restructuring History Level two Approved on 11-Nov-2010, Level two Approved on 22-Mar-2011, Level two Approved on 15-Mar-2012, Level two Approved on 11-Dec-2012, Level 2 RVP Decision on 27- Public Disclosure Copy Sep-2013 Related Projects P127962-Second Land Administration & Management Project (Additional Financing) Page 11 of 11