Indonesia - Reconstruction of Aceh Land Administration System Project

Document of The World Bank Report No: ICR 00001306 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF-055353) ON A MULTI DONOR TRUST FUND FOR ACEH AND NORTH SUMATRA GRANT IN THE AMOUNT OF US$28.50 MILLION TO THE REPUBLIC OF INDONESIA FOR A RECONSTRUCTION OF ACEH LAND ADMINISTRATION SYSTEM PROJECT May 24, 2010 Social Environment and Rural Development Unit Sustainable Development Department East Asia and Pacific Region  CURRENCY EQUIVALENTS (Exchange Rate Effective 24 November 2009) Currency Unit = Indonesian Rupiah IDR 1,000 = US$ 0.106 US$1 = IDR 9,434 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ANRI Archives National Republic of Indonesia (National Archives) AWP Annual Work Program (for the respective year) Bappenas National Development Planning Agency (Badan Perencanaan Pembangunan Nasional) BPKP Financial and Development Supervisory Board (Badan Pengawasan Keuangan dan Pembangunan) BPN National Land Agency (Badan Pertanahan Nasional) BPN-kantah BPN's district land office BPN-kanwil BPN's provincial office BPN-pusat BPN's national/central office (in Jakarta) BRR Agency for Rehabilitation and Reconstruction (Badan Rehabilitasi dan Rekonstruksi) CAS Country Assistance Strategy CDA Community-Driven Adjudication CLM Community Land Mapping (or community land maps) CSO Civil Society Organization DIPA Approval for Release of Budget Funds (under National Budget System, Daftar Isian Pelaksanaan Anggaran) FIG International Federation of Surveyors GAM Free Aceh Movement (Gerakan Aceh Merdeka) GoI Government of Indonesia IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report IDLO International Development Law Organization IDR Indonesian Rupiah ISR Implementation Status Report JICA Japan International Cooperation Agency KDP Kecamatan Development Project LMPDP Land Management and Policy Development Project M&E Monitoring and Evaluation MDF Multi-Donor Trust Fund for Aceh and North Sumatra MoF Ministry of Finance MOU Memorandum of Understanding MTR Mid Term Review NOL No-Objection Letter NGO Non-Government Organization PDO Project Development Objective PIBA Project Implementation and Beneficiary Assessment PIU Project Implementation Unit PMU Project Management Unit PRS Project Results Summary QAE Quality at Entry RALAS Reconstruction of Aceh Land Administration System Project SPADA Support for Poor and Disadvantaged Areas Project TA Technical Assistance TTL Task Team Leader UN United Nations UNDP United Nations Development Program UPP Urban Poverty Program Vice President: James W. Adams, EAPVP Country Director: Joachim von Amsberg, EACIF Sector Manager: Sonia Hammam, EASIS Project Team Leader: Keith Clifford Bell, EASER ICR Team Leader: Keith Clifford Bell, EASER  REPUBLIC OF INDONESIA RECONSTRUCTION OF ACEH LAND ADMINISTRATION SYSTEM PROJECT CONTENTS Data Sheet A. Basic Information .................................................................................................................... i B. Key Dates ................................................................................................................................ i C. Ratings Summary .................................................................................................................... i D. Sector and Theme Codes ........................................................................................................ii E. Bank Staff ...............................................................................................................................ii F. Results Framework Analysis...................................................................................................ii G. Ratings of Project Performance in ISRs ...............................................................................vii H. Restructuring .......................................................................................................................viii I. Disbursement Profile............................................................................................................viii 1. Project Context, Development Objectives and Design ........................................................... 1 2. Key Factors Affecting Implementation and Outcomes ........................................................... 4 3. Assessment of Outcomes....................................................................................................... 14 4. Assessment of Risk to Development Outcome ..................................................................... 23 5. Assessment of Bank and Borrower Performance.................................................................. 25 6. Lessons Learned.................................................................................................................... 28 7. Comments on Issues Raised by Grantee/Implementing Agencies/Donors ........................... 29 Annex 1. Project Costs and Financing ...................................................................................... 35 Annex 2. Project Outputs .......................................................................................................... 36 Annex 3. Economic and Financial Analysis.............................................................................. 42 Annex 4. Grant Preparation and Implementation Support/Supervision Processes.................... 43 Annex 5. Beneficiary Survey Results........................................................................................ 45 Annex 6. Stakeholder Workshop Report and Results ............................................................... 46 Annex 7. Summary of Grantee's Report and Comments on Draft ICR Report......................... 47 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders .................................. 56 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders .................................. 57 Annex 9. List of Supporting Documents................................................................................... 60 Annex 10. Meetings Conducted during the ICR Mission ........................................................ 61 MAP #35289 ............................................................................................................................. 62 A. Basic Information Reconstruction of Aceh Country: Indonesia Project Name: Land Administration System Project Project ID: P095883 L/C/TF Number(s): TF-55353 ICR Date: 05/25/2010 ICR Type: Core ICR MINISTRY OF Lending Instrument: ERL Grantee: FINANCE Original Total USD 28.5M Disbursed Amount: USD 14.8M Commitment: Revised Amount: USD 14.8M Environmental Category: B Implementing Agencies: Badan Pertanahan Nasional Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: Effectiveness: 08/22/2005 08/22/2005 Appraisal: 05/12/2005 Restructuring(s): Approval: 06/24/2005 Mid-term Review: 06/29/2007 05/11/2007 Closing: 12/31/2008 06/30/2009 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Grantee Performance: Moderately Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Satisfactory Government: Unsatisfactory Implementing Moderately Quality of Supervision: Satisfactory Agency/Agencies: Unsatisfactory Overall Bank Overall Borrower Moderately Satisfactory Performance: Performance: Unsatisfactory i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 100 100 Theme Code (as % of total Bank financing) Land administration and management 100 100 E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din Kassum Country Director: Joachim von Amsberg Andrew D. Steer Sector Manager: Sonia Hammam Rahul Raturi Project Team Leader: Keith Clifford Bell Keith Clifford Bell ICR Team Leader: Keith Clifford Bell ICR Primary Author: Maria Cecilia Zanetta F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The specific objectives of the project are: (i) to recover and protect land ownership rights of people in the affected and surrounding areas; (ii) to rebuild the land administration system. Revised Project Development Objectives (as approved by original approving authority) ii (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : A.1 Document recovery and imagery completed. All land records reconstructed and held in digital Value All land records damaged records quantitative or or destroyed managment Qualitative) system. Original target date 03/31/2006 Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) Indicator 2 : A.2 Community-Driven Adjudication, Community Awareness and Participation CDA completed in all areas, as follows: - Priority 1 (100,000 parcels) Value Nil. These activities have by 12/31/06 quantitative or never been undertaken - Priority 2 Qualitative) before in Aceh. (200,000 parcels) by 12/31/06 - Priority 3 (300,000) by 12/31/07 Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) A.3 Surveying and Mapping, Registration of Rights and issuance of Title Indicator 3 : Certificates CDA completed in all areas, as follows: - Priority 1 Estimated that up to Value (100,000 parcels) 60,000 land titles (40,000 quantitative or by 12/31/06 urban and 20,000 rural) Qualitative) - Priority 2 prior to tsunami. (200,000 parcels) by 12/31/06 - Priority 3 (300, 000 parcels) by iii  12/31/07 Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) Newly constructed land offices fully operational by December 31, 2006. Indicator 4 : Renovated and structurally strengthened land offices fully operational by March 31, 2006 All civil works (renovations and constructions) completed. Original covenant Value dates were quantitative or nil newly constructed. renovations Qualitative) completed Mar 31 2006 and newly constructed offices operational by Dec 31 2006. Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) Indicator 5 : Policies/regulations implemented. Issuance of Presidential Value Decree (Perpu) Required decrees not in quantitative or and MOF decree place. Qualitative) on waiver of fees and charges (due Oct 2005). Date achieved 06/22/2005 09/30/2009 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : No. of land parcels provided for public notification 50,000 (out of Value 100,000 for (quantitative Nil Priority 1 Areas) or Qualitative) 200,000 by Dec 31, 2006 iv  300,000 by Dec 31, 2007 Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) Indicator 2 : No. of adjudication teams operational. Value 30 original target (quantitative nil operational 11/25/2005 or Qualitative) Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) Computerization & Development of System for Records Management & Back- Indicator 3 : up System Value Manual system only. operational. (quantitative Records lost & damaged Original target or Qualitative) by tsunami date 06/30/2006 Date achieved 06/22/2006 12/31/2008 Comments (incl. % achievement) Indicator 4 : Project Management support - M&E System Procedures established. Original M&E Value target date (quantitative No M&E system in place. 06/30/2006 or Qualitative) Audits carried out. (No target date set in KPIs) Date achieved 06/22/2005 12/31/2008 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 12/21/2005 Moderately Satisfactory Moderately Satisfactory 3.00 2 06/26/2007 Unsatisfactory Unsatisfactory 11.70 Moderately Moderately 3 05/14/2008 11.70 Unsatisfactory Unsatisfactory 4 06/05/2008 Moderately Satisfactory Moderately Satisfactory 11.70 v  5 06/29/2008 Moderately Satisfactory Moderately Satisfactory 11.70 Moderately Moderately 6 12/25/2008 11.70 Unsatisfactory Unsatisfactory Moderately Moderately 7 06/22/2009 12.40 Unsatisfactory Unsatisfactory H. Restructuring (if any) Not Applicable I. Disbursement Profile vi 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal The tsunami that struck Indonesia and several other countries in the Indian Ocean region on "Boxing Day," December 26, 2004, resulted in one of the worst natural disasters in recorded human history. Indonesia bore the major brunt of the disaster. It had devastating consequences for more than 1,000 communities along more than 800 kilometers of the northern coastal areas of the major island of Sumatra and smaller offshore islands in the provinces of Aceh and North Sumatra.: