$ Report No: RES00632 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Land Tenure Improvement Project APPROVED ON 21-Dec-2021 TO United Republic of Tanzania Urban, Resilience and Land Eastern And Southern Africa Regional Vice President: Victoria Kwakwa Regional Director: Wendy E. Hughes Country Director: Nathan M. Belete Practice Manager: Catalina Marulanda Task Team Leader(s): Victoria Stanley, David Mason, Camille Bourguignon-Roger The World Bank Land Tenure Improvement Project (P164906) ABBREVIATIONS AND ACRONYMS CCRO Certificate of Customary Right of Occupancy CORS Continuously Operating Reference Stations CRO Certificate of Right of Occupancy CSO Civil Society Organization ESF Environmental and Social Framework ESMT PIT’s Environmental and Social Management Team ESMP Environmental and Social Management Plan GoT Government of Tanzania GRM Grievance Redress Mechanism IDA International Development Association ILMIS Integrated Land Management System (now E-Ardhi) LDI Project Land Data Infrastructure Project LTIP Land Tenure Improvement Project M&E Monitoring and Evaluation MLHHSD Ministry of Lands, Housing and Human Settlement Development MS Moderately Satisfactory MTR Mid-Term Review MU Moderately Unsatisfactory PDO Project Development Objective PIT Project Implementation Team RF Results Framework ToC Theory of Change VLUP Village Land Use Plans The World Bank Land Tenure Improvement Project (P164906) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P164906 Land Tenure Improvement Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Tanzania Approval Date Current Closing Date 21-Dec-2021 30-Jun-2025 Environmental and Social Risk Classification (ESRC) High Organizations Borrower Responsible Agency Ministry of Lands, Housing and Human Settlements United Republic of Tanzania Development @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective To strengthen the national land administration system and increase tenure security in selected areas for both men and women. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 i The World Bank Land Tenure Improvement Project (P164906) IDA 43.95 42.67 0.00 100.00 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Land Tenure Improvement Project (P164906) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................4 III. PROPOSED CHANGES ................................................................................................................................................5 IV. DETAILED CHANGE(S) ...............................................................................................................................................5 The World Bank Land Tenure Improvement Project (P164906) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This paper seeks approval from the Country Director (CD) for a Level II restructuring of the Land Tenure Improvement Project (LTIP) (P164906), International Development Association (IDA) Credit No. 7022-TZ, which will: (a) cancel sub-component 2.2 Production of Base Maps as formally requested by Government of Tanzania (GoT); (b) restructure the Project Results Framework as agreed during the Mid-term Review (MTR); and (c) adjust the end targets in light of the cancelation and early closure of the Project. Project Overview. 2. The LTIP (P164906) was approved by the World Bank’ Board of Directors on December 21, 2021. It is financed by IDA Credit No. 7022-TZ amounting to XDR106.5 million (US$150 million equivalent at the time of approval). LTIP became effective on May 18, 2022, and was scheduled to close on January 31, 2027 (approximately 5.1 years implementation). The Project is implemented by the Ministry of Lands, Housing and Human Settlement Development (MLHHSD) through a Project Implementation Team (PIT). 3. The Project Development Objective (PDO) is to strengthen the national land administration system and increase tenure security in selected areas for both men and women. The original Project included the following four Components: • Component 1: Increased Tenure Security (US$71.99 million) supports the mass issuance of Certificate of Customary Right of Occupancy (CCROs), Certificate of Right of Occupancy (CROs), Residential Licenses, and other related activities. Activities under this Component are implemented in an inclusive and participatory way to ensure gender equity, and protection of the rights of all groups including women, youth, hunter-gatherers, pastoralists, farmers, and urban poor as detailed in the CRO and CCRO manuals. • Component 2: Land Information Management (US$33.14 million) finances activities related to spatial data infrastructure and Information and Communications Technology. This component finances the rollout of MLHHSD’s Integrated Land Management System (ILMIS) across the country; the production of base maps in the project areas to support mass land certification and land use planning and management; the establishment of Continuously Operating Reference Stations (CORS); and the mapping of land values across the country. • Component 3: Physical Development of the Land Administration System (US$24.66 million) supports the construction of Regional Land Offices for 25 regions and renovation/reconstruction of District Land Offices. This component also finances the operationalization of Land and Housing Tribunals; improvements to the policy, legal and regulatory framework; public awareness activities; as well as the implementation of capacity building activities to improve the performance of all relevant actors in the land sector. • Component 4: Project Management (US$12.69 million) supports effective project management, financial management, procurement, establishment of a Monitoring and Evaluation (M&E) framework, and compliance with Environmental and Social Framework (ESF) policies and processes. Under this Component a Grievance Redress Mechanism for the Project has been established and managed to ensure that all grievances, complaints, and concerns are responded to. Page 1 The World Bank Land Tenure Improvement Project (P164906) 4. The MTR for the Project was held from April 22 to May 3, 2024, and resulted in an agreement to restructure the Project to reduce targets, cancel Sub-Component 2.2 on base mapping1, and build up capacity for procurement and ESF implementation. However, before this restructuring could take place, the GoT requested2 cancelation of the undisbursed balance to respond to newly emerging priorities and reallocate the funds. On October 15, 2024, the Bank restructured LTIP to cancel the uncommitted and undisbursed amount of XDR 74,358,927.05 (US$100,089,346.58 as of August 16, 2024) and advance the closing date to June 30, 2025, as agreed with MLHHSD and the Ministry of Finance. The original PDO remained unchanged. 5. In order to process the cancellation quickly, only the cancellation and change in closing date were processed under the first Restructuring. This second Restructuring will adjust the agreed scope of the Components and the Results Framework (RF) as agreed at MTR. 6. Project performance to date: Progress towards achieving the PDO is rated Moderately Satisfactory (MS), and Implementation Progress was downgraded to Moderately Unsatisfactory (MU) in the Implementation Status and Results Report (ISR) of October 30, 2023, and remains MU. Procurement and Financial Management are currently both rated MS. Compliance with both social and environment safeguards is rated MU. A new ISR will be filed following this restructuring and all Project ratings will be revised to capture actual progress relative to reduced targets across all components. There are no pending audits. 7. Current status of implementation: Disbursements stand at US$42.67 million, of which US$27 million have been paid and the remaining US$15 million are committed to contracts that will be completed by the June 2025 closing date. See the table below for details by Component. Project Costs at Revised Project Costs Component Name Appraisal Dec 2024 (US$ millions) (US$ millions)3 Component 1: Increased Tenure Security 71.99 21.23 Component 2: Land Information 33.14 6.95 Management Component 3: Physical Development of 24.66 10.20 Land Administration System Component 4: Project Management 12.69 4.30 (including ESF management) Contingency (5 percent) 7.50 n/a Sub-total Components 150.00 42.67 Cancelled as of October 2024 n/a 100.10 Total 150.00 142.774 1 Requested formally by Government on December 18, 2023. 2 Letter dated August 9, 2024 (Ref. No CDA.414/624/10), received by IDA on August 16, 2024. 3 Please note that this is projected costs until Project closing. 4 The discrepancy in final figures is due to exchange rate differences for XDR between appraisal in 2021 and today. Page 2 The World Bank Land Tenure Improvement Project (P164906) 8. The current status of implementation is summarized below: • Component 1: Increased Tenure Security. Despite the early cancelation, key processes and systems have been created for land administration and tenure security in Tanzania. A streamlined process for CROs was piloted in urban areas and has been documented in the CRO manual. At the same time the CCRO process has also been improved and documented in a revised CCRO manual. These manuals provide standardized and clear processes that can be implemented by a variety of implementers – local government, MLHHSD, civil society, private surveyors, etc. when funds are available. o For rural land certification - 166 villages (of the original 250 planned) CCRO activities have been completed, while this activity is ongoing in 21 villages, and has not been initiated in the remaining villages. A total of 381,900 parcels have been adjudicated to date (survey completed and registration information collected), and 63,406 CCROs have been registered. An additional 85,309 CCROs have been drafted for registration. o Urban land certification has been innated through direct implementation in 8 District Councils, with the objective to register 110,600 CROs. To date, 107,666 parcels have been planned and surveyed, about half of which have been recorded in the e-Ardhi (formerly known as ILMIS). Since August 11, 2024, beneficiaries can use a newly deployed Land Portal to file their CRO registration application, and as of September 17, 2024, 954 had done so. In Dar es Salaam, the number of CROs registered though the MLHHSH Ardhi-clinics has reached 37,204. • Component 2: Land Information Management. ILMIS has been upscaled and renamed e-Ardhi. The development of the third version of the software has been completed and includes modules for mass registration, online lodging of transactions and other key features. The plan is to complete the roll-out if e-Ardhi in all project districts (14) by the early closing date. Data conversion is also progressing, with around 450,000 remaining files. The CORS network contract has been issued and the winning firm – Trimble – has completed the detailed design and field reconnaissance phase. The contract has been renegotiated so that the main installation will be completed by the revised closing date of June 30, 2025. • Component 3: Physical Development of the Land Administration System. The bulk of this financing was for completion of 25 regional offices which will not be built given the early project closure. The contracts for office design have been completed and these designs will be ready should other funding become available. Significant equipment has been purchased. MLHHSD is working on the dissemination of the revised Land Policy, Post transaction regulations, Real Estate Act, Land Surveying legislation, Ardhi Institutes Act, NSDI policy formulation and review of the Valuation and Valuers Registration Act Cap 138. The other key activities – support for land and housing tribunals, public awareness campaigns and capacity building have been substantial as evidenced by the current figures in the RF. • Component 4: Project Management. The PIT remains active and is managing the Project effectively. ESF management has improved significantly. Page 3 The World Bank Land Tenure Improvement Project (P164906) II. DESCRIPTION OF PROPOSED CHANGES 9. As requested by the GoT in December 2023, the proposed restructuring will formally cancel sub-component 2.2 on base mapping. The funds have already been reallocated to scale up Village Land Use Planning5. This has already been agreed to by both the Bank and the GoT. Base mapping activities will be financed under the Korean funded Land Data Infrastructure (LDI) Project. This proposal addresses a request from the Parliament to scale up the preparation of VLUPs to “mitigate the escalation of land conflicts prevalent in rural areas across Tanzania”. 10. No change to the PDO is required, but the scope of the Project has been reduced by the cancelation of funds (approximately 70 percent cancelled) and the reduction in time for implementation (from 5.1 years to 3.5). The original scope of activities focused on tenure security (primarily Component 1) are reduced from 40 districts to 14 districts. The scope of activities focused on strengthening the land administration system (Components 2 and 3) are also reduced to the 14 districts and will no longer support base mapping nor the physical construction of regional offices. However, the improvements to ILMIS (now E-Ardhi) and roll out to district level offices will continue, on a reduced geographical scope. 11. Several changes to the RF PDO level indicators were agreed during the MTR and these include: a. Delete the indicator – “Reduction in average time for issuance of a CRO, first registration.” This indicator has proven difficult to measure and track due to the fact that the ILMIS (now E-Ardhi) digital land information system has not been fully rolled out around the country. b. A new indicator that is more in line with project activities will be added: “MLHHSD's E-Ardhi system is operational in all offices where Component 1 is implemented.” There is an agreed detailed monitoring methodology, including both functional improvements to E-Ardhi and rollout to the 14 districts. E-Ardhi is key for MLHHSD to be able to monitor average time for issuance of a CRO, and is contributing to the initial PDO indicator to reduce registration processing time c. Updated targets for both CROs and CCROs that can be achieved by the advanced project closing date of June 30, 2025. d. A new indicator– “Number of parcels recorded in ILMIS cadastre.” Once the parcel is surveyed and processed it can be uploaded into the digital cadaster (in ILMIS/E-Ardhi). After that citizens need to pay fees and take other steps to receive their certificates (CROs and CCROs) that are beyond the control of the Project. This indicator will support better measurement of progress towards the PDO. e. The indicator on ‘beneficiary satisfaction with systematic registration process’ is moved to intermediate level. While an important indicator of the quality of the systematic registration process, it is not directly linked to the achievement of the PDO. 12. At the intermediate level, some indicators are dropped due to changes in activities; new indicators are added to better capture the results of the Project; and targets have been revised. The highlights are listed below: a. The indicator for ’village land registries renovated’ is dropped as this was determined to be unrealistic and not efficient to manage registration of CCRO transactions (sub-divisions, inheritance, sale that take place after first registration). Instead, a new indicator is added to measure the system for post-registration transactions is established and rolled out to the relevant districts. b. The indicator for base mapping is dropped given the cancellation of sub-component 2.2. 5As there is only one withdrawal category in the Financing Agreement, this reallocation was done by agreement between MoF, MLHHSD and the Bank. Page 4 The World Bank Land Tenure Improvement Project (P164906) c. A new indicator is added to record the number of VLUPs prepared under the project that do not include continuation to the CCRO stage as this is well beyond the original target of 250. d. A new indicator is added to record the number of people reached through other means – radio, digital, social media – to raise awareness on the project and land rights issues. e. A new indicator is added to record the extensive training provided to other land sector actors/stakeholders (for example CSO). @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Closing Date Extension No Components Yes Loan Cancellations No Development Objective No Reallocations No Summary Description No Financial Management No (Operation Abstract) Legal Operational Policies No Procurement No MFD/PCE No Institutional Arrangement No Risks No Implementation Schedule No Legal Covenants No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COMPONENTS Current Current Proposed Proposed Cost Action Component Name Cost (USD) Component Name (USD) Page 5 The World Bank Land Tenure Improvement Project (P164906) Component 1: Increased Component 1: Increased 71,990,000.00 Revised 21,227,752.00 Tenure Security Tenure Security Component 2: Land Component 2: Land 33,140,000.00 Revised 6,947,109.00 Information Management Information Management Component 3: Physical Component 3: Physical Development of Land 24,660,000.00 Revised Development of Land 10,195,128.00 Administration System Administration System Component 4: Project Component 4: Project 12,690,000.00 Revised 4,295,298.00 management management Marked for Contingency 7,500,000.00 Deletion TOTAL 149,980,000.00 42,665,287.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 6 The World Bank Land Tenure Improvement Project (P164906) RESULTS COUNTRY: Tanzania Land Tenure Improvement Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Strengthened Land Administration System Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 5,523 Sep/2021 TBC 16-Oct-2023 8,465 30-Oct-2024 8,465 Jun/2025 Revise Increased number of CRO Comments on achieving targets The original baseline has been revised to recognize that this data is only available in ILMIS areas - Dar es Salaam transactions (Text) and Dodoma New E-Ardhi system is operational in 0 Oct/2024 77% 30-Oct-2024 100% Jun/2025 all offices where Comp 1 is implemented (Text) Increased Tenure Security Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year NewNumber of parcels (for 0 Oct/2024 457,655 30-Oct-2024 662000 (500000 Jun/2025 CROs/CCROs) recorded in ILMIS CCROs/ 162000 cadaster (Text) CROs) Revise 0 Sep/2021 8,105 30-Sep-2023 106,369 30-Oct-2024 239,000 (54000 Jun/2025 Number of certificates (CROs, CROs; 185000 CCROs) registered (Text) CCROs) Reviseof which female 0 Sep/2021 31% 30-Sep-2023 32% 30-Oct-2024 40% Jun/2025 (including individual and joint tenure) (Text) Page 7 The World Bank Land Tenure Improvement Project (P164906) Revise Increased perception of tenure 0 Sep/2021 81% 01-Sep-2023 82% 01-Sep-2023 75% Jan/2027 security (Text) Revise Female (Text) 0 Sep/2021 83% 01-Sep-2023 83% 01-Sep-2023 75% Jun/2025 Intermediate Results Indicators by Components Component 1: Increased Tenure Security Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Sep/2021 0.00 19-Oct-2023 most parcels have 30-Oct-2024 1,441 Jun/2025 Revise received CROs, Number of residential licenses CCROs issued (Number) Comments on achieving targets target reduced Revise Female (Text) 0 Sep/2021 0 19-Oct-2023 0 30-Oct-2024 304 Jun/2025 0.00 Sep/2021 0.00 19-Oct-2023 471 30-Oct-2024 846 Jun/2025 Number of villages with land certificates (Number) Comments on achieving targets 250 villages are targeted. This is a pre-condition for CCROs and needs to be completed before final year of the project 0 Sep/2021 80 19-Oct-2023 277 30-Oct-2024 250 Jun/2025 Number of VLUPs completed (Text) Comments on achieving targets An additional 569 VLUPs were completed and a new indicator will be added new Oct/2024 569 30-Oct-2024 569 Jun/2025 Number of VLUPs completed without CCROs (Text) Comments on achieving targets this was requested by govt in Dec 2023 121 TZS (BLN) Sep/2021 58 TZS (BLN) 19-Oct-2023 237.6 Bln TZS 30-Oct-2024 322 Bln TZS Jun/2025 Increased collection of land rent (Text) Comments on achieving targets The amount is for the whole country. However this current figure represents only the first half of the year. 0 Sep/2021 68% 31-Aug-2023 68% CROs; 98% 31-Aug-2023 70% Jun/2025 CCROs Page 8 The World Bank Land Tenure Improvement Project (P164906) Degree of satisfaction of beneficiaries Comments on achieving targets Will measure the degree of satisfaction of those benefiting from the systematic registration process for CROs with the process for systematic and CCROs issuance for CROs, CCROs (Text) 0 Sep/2021 65% 31-Aug-2023 65% CROs; 98% 31-Aug-2023 70% of female Jun/2025 of which female (Text) CCROs beneficiaries 10,622 Sep/2021 11,371 19-Oct-2023 7,847 30-Oct-2024 30% decrease over Jun/2025 Reduced number of land conflicts the baseline (Text) Comments on achieving targets The number is for project areas only (districts). This represents the fact that backlogs are still being cleared. System established to ensure that 45% Oct/2024 45% 30-Oct-2024 100% Jun/2025 CCRO transactions are registered in Comments on achieving targets to capture the system to be put in place for rural transactions eArdhi (Text) Component 2: Land Information Management Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Number of offices with E-Ardhi 6.00 Sep/2021 8.00 19-Oct-2023 13 30-Oct-2024 20 Jun/2025 operational (Number) 0 Sep/2021 tender has been 19-Oct-2023 contract signed and 30-Oct-2024 22 Jun/2025 launched in August implementation Number of districts with CORS 2023 underway coverage (Text) Comments on achieving targets Baseline data is for the whole country Component 3: Physical Development of Land Administration System Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 55.00 Sep/2021 93.00 19-Oct-2023 111 30-Oct-2024 115 Jun/2025 Number of District Land and Housing Tribunals operational (Number) Comments on achieving targets The number is for the whole country. Equipment, working tools are available; premises are renovated. Number of people informed on the 0 Sep/2021 14,436 19-Oct-2023 709,955 30-Oct-2024 850,000 Jun/2025 project including land administration, Comments on achieving targets number of people informed of the project and process, including through community consultations, public certification process (Text) awareness campaigns, etc. Page 9 The World Bank Land Tenure Improvement Project (P164906) 91,945 Oct/2024 91,945 30-Oct-2024 150,000 Jun/2025 Number of people reached through other platforms (Text) Comments on achieving targets to capture awareness raised via social media, and other platforms 0.00 Sep/2021 368.00 19-Oct-2023 1,125 30-Oct-2024 1,400 Jun/2025 Number of staff trained (Number) Comments on achieving targets Baseline data is for Ministry staff at HQ and regional offices. Target number includes staff at district level. An additional 33,777 have been trained outside of the Ministry 0 Sep/2021 114 19-Oct-2023 330 30-Oct-2024 440 Jun/2025 Female (Text) Comments on achieving targets Baseline data is for Ministry staff at HQ and regional offices. Target number includes staff at district level. 35,777 Oct/2024 35,777 30-Oct-2024 37,000 Jun/2025 Number of other project stakeholders trained (Text) Comments on achieving targets To capture other project results 14,873 Oct/2024 14,873 30-Oct-2024 15,000 Jun/2025 of which female (Text) Comments on achieving targets to capture other project results Component 4: Project management Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Sep/2021 2.00 19-Oct-2023 2.00 30-Oct-2024 4.00 Jun/2025 Number of surveys completed (Number) Comments on achieving targets Baseline, MTR, final surveys 0 Sep/2021 3 19-Oct-2023 8 30-Oct-2024 11 Jun/2025 Semi-annual and annual progress reports prepared (Text) Comments on achieving targets count of reports prepared Page 10 The World Bank Land Tenure Improvement Project (P164906) Annex 1: Revised Theory of Change Activities Outputs Outcomes PDO Certification of rural land Increased number of land and CCROs, CROs, residential property registered Component 1 licenses issued Certification of urban land Increased Tenure Security Reduced number of land conflicts Upgrading and upscaling of ILMIS Land information system rolled out and improved Component 2 Produce base maps Improved accessibility and efficiency of land administration system Enhance geodetic framework Land institutions strengthened Build capacity for the land sector Improved Land Administration Increased public understanding of Component 3 Develop legal and regulatory reforms land related issues Land related information disseminated Raise public awareness Critical assumptions: A1: that the GoT has sufficient technical and institutional capacity to manage the range of tasks and stakeholders. A2: that the public interest in and/or ability to formalize land tenure or maintain through transactions. Page 11