Papua New Guinea - Land Mobilization Project

Document of The World Bank FOR OFFICIAL USE ONLY Z Al 30z'7S- PA1V' Report No. 7592-PNG STAFF APPRAISAL REPORT PAPUA NEW m CA T&I;j4A LAND MOBILIZATION PROJECT APRIL 12, 1989 Asia Regional Office Country Department V This document has a resticted distribon and may be used by recipients only in the performaoce of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of October 1988) Currency Unit - Kina (K) US$1.00 - Kina 0.90 GOVERNMENT OF PAPUA NEW GUINEA FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 kilometer - 0.62 miles (mi) 1 square kilometer (sq km) - 1,000 ha = 0.39 sq mil 1 hectare (ha) = 2.47 acres (ac) 1 kilogram (kg) = 2.2 pounds (lb) 1 metric ton (ton) - 2,206 pounds ABBREVIATIONS ABPNG - Agriculture Bank of Papua New Guinea AIDAB - Australian International Development Assistance Bureau CILM - Commission of Inquiry into Land Matters CPC - Computer Policy Committee DAL - Department of Agriculture and Livestock DEC - Department of Environment and Conservation DFP - Department of Finance and Planning DLPP - Department of Lands and Physical Planning DME - Department of Minerals and Energy DoF - Department of Forests DoJ - Department of Justice DoW - Department of Works DPA - Department of Provincial Affairs GOPNG - Government of Papua New Guinea LAIP - Land Administration Improvement Program LEAD - Land Evaluation and Demarcation Project LMC - Land Management Committee LMP - Land Mobilization Program MOU - Memorandum of Understanding NLMC - National Land Management Committee NCC - National Computer Center NEC - National Executive Council NMB - National Mapping Bureau PMU - Program Management Unit (Department of the Prime Minister) PLMC - Provincial Land Management Committee PNG - Papua New Guinea PNGLIS - Papua New Guinea Land Information System PNGRIS - Papua New Guinea Resource Information System RMC - Resource Management Committee UNDP/SNAPEM - United Nations Development Program/Strengthening National and Provincial Economic Management Project UNITECH - University of Technology UPNG - University of Papua New Guinea  - 'IAL ONLY PAPUA NEW GUINEA LAND MOBILIZATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. LOAN AND PROJECT SUMMARY ...... .. iv I. BACKGROUND .................................................. 1 A. Land Resources and Land Use . . . 1 B. Land Tenure and Law . . . 1 C. The Land Sector ...... 4 D. Bank Lending Strategy ........ 7 II. THE PROJECT .............................................. ... 8 A. Project Origin and Concept .............................. 8 B. Objectives .. . 9 C. Main Features ........................................... 10 D. Detailed Project Description .... 11 Program Management .. .. 11 General Institution Building . ... 13 Mobilizing Alienated Land ............................ . 16 Mobilizing Customary Land .... 17 Decentralization of Alienated Land Administration ..... 18 Land and Resource Information .... 18 III. PROJECT COST AND FINANCING .............................. .... 22 A. Project Cost .......................................... . . 22 B. Financing ..... 23 C. Procurement ............................................ . 25 D. Disbursements ......................................... . . 26 E. Special Account ..... 27 F. Accounts and Audits . . ... 27 This project is based on the findings of an appraisal mission which visited Papua New Guinea in October 1988. The mission comprised Messrs. E. Zimmer-Vorhaus, D.R. Subasinghe (Bank), W. Kennedy, K. Nettle and J. Edgerton (Consultants). This document has a restricted distribution and may be used by recipients only in the performamce of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Page No. IV. PROJECT MANAGEMENT AND IMPLEMENTATION ....................... 27 A. Project Management ...... . . . 27 Department of Lands and Physical Plannig . .27 Program Management Conmittee ...27 Policy and Programming Division ...28 Personnel Services Division . . . 28 National Mapping Bureau ...28 Program Budgeting/Management . . .28 The Role of PNGLIS ...29 National Land Management Comttee ...29 Other Central Departments . . .30 Memorandum of Understanding . . .30 Department of Justice . ..30 Provincial Governments . . .31 Private Sector . ............ 31 B. Management of Technical Assistance . . .32 C. Monitoring ...32 D. Evaluation ...33 E. Staffing Requirements . . .33 F. Staff Development and Training . . .35 V. BENEFITS AND RISKS ..36 A. Benefits and Beneficiaries . . 36 B. Impact on Government Expenditure and Revenue .37 C. Environmental Impact ................ i ................... 37 D. Impact on Women and Tribal Groups .38 E. Riss........................... 39 VI. AGREEMENTS REACHED AND RECOMNDATIONM . . 39 ANNEXES 1. Staff Development and Training Table A DLPP Actual Staffing Levels, 1988 Table B DLPP Proposed Staffing Levels, 1993 Table C Increase/Decrease in Total DLPP Staff Table D Projected Wastage of Senior DLPP National Staff Table E DLPP Senior Staff Requirements in 5 Years Table F Incremental Senior Staff Required by Provinces in 5 Years Table G Total Number of Senior Staff Required in 5 Years Table H Projected Output and DLPP Recruitment of Diplomates and Graduates Table I Likely Supply and Demand of Incremental Senior Staff Over Five Years  - iii - 2. Mobilizing Alienated Land Page 1 List of Proposed Short-Term Legal Changes Page 2 List of Proposed Legal Consolidation Page 3 Delegation of Powers Under the Land Act to East Sepik and East New Britain Provinces Page 4 Alienated Land (ha) Page 5 Estimates of Total Alienated Land 3. Customary Land Issues Attachment A: East Sepik Legislative Scheme 4. Land and Resource Information Component: Training, Private Sector Involvement and Cost Recovery Table 1 Geodetic Adjustment and Topographic Mapping Schedule Table 2 Major NMB Equipment 5. Logical Framework Table 1 Work Unit Personnel Services Division Outputs, Work Unit Inputs Table 2 Work Unit Personnel Services Division Staff Projections Table 3 Work Unit Personnel Services Division Project Costs 6. Project Costs and Cofinancing-Government of Australia 7. Disbursement Schedule 8. Technical Assistance 9. DLPP Revenue Forecast 10. DLPP Budget 1988 and 1989 11. Implementation Schedule 12. Documents in the Project File CHARTS 1. Policy Formulation and Resource Managemek. Mechanisms 2. Department of Lands and Physical Planning Organization --1986-1988 3. Department of Lands and Physical Planning Organization--1989 4. DLPP Policy and Programming Division 5. DLPP Personnel Services Division 6. DLPP Regional Structure 7. Proposed Provincial Lands Divisions MAPS IBRD - 20745 IBRD - 13732R  - iv - PAPUA NEW GUINEA LAND MOBILIZATION PROJECT Loan and Project Summary Borrowers The Independent State of Papua New Guinea Amount: US$19.6 million equivalent Terms: Twenty years, including five-year grace period, at the Bank's standard variable interest rate. Proiect Description: The five-year project would support the Government's Land Mobilization Program which aims at: (a) creating a clear policy and legislative environment to promote investment in land; (b) enabling customary land owners to increasingly participate in the development of their own land; (c) pro- viding effective land services to all land users (surveying, land transfer and disposal, title registration, valuation, land acquisition, dispute settlement, mapping, and physical planning); (d) transferring land administration responsibilities from the national Government to the provincial governments in line with the Organic Law on Provincial Government; and (e) optimizing the use of the stock of alienated land. Specifically, it would, within the framework of the Land Mobilization Program, have the following components: (1) Program Management, (2) General Institution Building, including strengthening the policy and institutional infrastructure, and improving personnel services, (3) Mobilizing Alienated Land, (4) Mobilizing Customary Land, (5) Decentralization of Alienated Land Administration, and (6) Land and Resource Information. Benefits: Benefits under the project are expected from starting a process of improving the efficiency of land management, which has been recognized as a key systemic constraint on development of the economy. The main benefits derive from more efficient land administration leading to lower transaction costs, minimized delays in undertaking investments in productive sectors, greater revenue collection, and incentives for land-users to invest in land-based activities. Clarification of clan authority in land distribution and registration of customary land would ultimately reduce land disputes.  Risks: The main risks include ineffective management of the Land Mobilization Program, inability to coordinate and absorb 520 staff-months of technical assistance, quality of staff that can be retained or recruited into key positions, inadequate budget allocations, unwillingness or inability of national government agencies and provinces to cooperate and use coordinating mechanisms, and the failure of parlia- ment to approve amendments to land laws. To minimize these risks, the project design includes: a management componeLt and technical assistance for management and information systems; a Memorandum of Understanding on project implemen- tation between DLPP and other key departments and joint (Government and Bank) annual reviews to facilitate effective management and implementation; provision of consultancy services to administer the technical assistance and the responsibility for managing the work and absorbing the output of technical assistance assigned to individual work-units of the Department, staff training and development activities, and establishes the National Land Management Committee. The advanced state of project preparation and the Government decision to begin implementation of the Land Mobil:.zation Program on January 1, 1989 demonstrates Government's commItment to the project. Estimated Costs: /a Local Foreign Total