Document of The World Bank FOR OFFICIAL USE ONLY Z Al 30z'7S- PA1V' ReportNo. 7592-PNG STAFF APPRAISAL REPORT PAPUA NEW m CA T&I;j4A LAND MOBILIZATION PROJECT APRIL 12, 1989 Asia RegionalOffice CountryDepartment V This document hasa 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. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
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 OfficeCountry Department V
This document has a resticted distribon and may be used by recipients only in the performaoce oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS(As of October 1988)
Currency Unit - Kina (K)US$1.00 - Kina 0.90
GOVERNMENT OF PAPUA NEW GUINEAFISCAL 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 mil1 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 GuineaAIDAB - Australian International Development Assistance BureauCILM - Commission of Inquiry into Land MattersCPC - Computer Policy CommitteeDAL - Department of Agriculture and LivestockDEC - Department of Environment and ConservationDFP - Department of Finance and PlanningDLPP - Department of Lands and Physical PlanningDME - Department of Minerals and EnergyDoF - Department of ForestsDoJ - Department of JusticeDoW - Department of WorksDPA - Department of Provincial AffairsGOPNG - Government of Papua New GuineaLAIP - Land Administration Improvement ProgramLEAD - Land Evaluation and Demarcation ProjectLMC - Land Management CommitteeLMP - Land Mobilization ProgramMOU - Memorandum of UnderstandingNLMC - National Land Management CommitteeNCC - National Computer CenterNEC - National Executive CouncilNMB - National Mapping BureauPMU - Program Management Unit (Department of the Prime Minister)PLMC - Provincial Land Management CommitteePNG - Papua New GuineaPNGLIS - Papua New Guinea Land Information SystemPNGRIS - Papua New Guinea Resource Information SystemRMC - Resource Management CommitteeUNDP/SNAPEM - United Nations Development Program/Strengthening National
and Provincial Economic Management ProjectUNITECH - University of TechnologyUPNG - University of Papua New Guinea
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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 . . . 1B. Land Tenure and Law . . . 1C. The Land Sector ...... 4D. Bank Lending Strategy ........ 7
II. THE PROJECT .............................................. ... 8
A. Project Origin and Concept .............................. 8B. Objectives .. . 9C. Main Features ........................................... 10D. Detailed Project Description .... 11
Program Management .. .. 11General Institution Building . ... 13Mobilizing Alienated Land ............................ . 16Mobilizing Customary Land .... 17Decentralization of Alienated Land Administration ..... 18Land and Resource Information .... 18
III. PROJECT COST AND FINANCING .............................. .... 22
A. Project Cost .......................................... . . 22B. Financing ..... 23C. Procurement ............................................ . 25D. Disbursements ......................................... . . 26E. Special Account ..... 27F. Accounts and Audits . . ... 27
This project is based on the findings of an appraisal mission which visitedPapua New Guinea in October 1988. The mission comprised Messrs.E. Zimmer-Vorhaus, D.R. Subasinghe (Bank), W. Kennedy, K. Nettle andJ. Edgerton (Consultants).
This document has a restricted distribution and may be used by recipients only in the performamceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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Page No.
IV. PROJECT MANAGEMENT AND IMPLEMENTATION ....................... 27
A. Project Management ...... . . . 27Department of Lands and Physical Plannig . .27Program Management Conmittee ... 27Policy and Programming Division ... 28Personnel Services Division . . . 28National Mapping Bureau ... 28Program Budgeting/Management . . .28The Role of PNGLIS ... 29National Land Management Comttee ... 29Other Central Departments . . .30Memorandum of Understanding . . .30Department of Justice . .. 30Provincial Governments . . .31Private Sector . ............ 31
B. Management of Technical Assistance . . .32C. Monitoring ... 32D. Evaluation ... 33E. Staffing Requirements . . .33F. Staff Development and Training . . .35
V. BENEFITS AND RISKS .. 36
A. Benefits and Beneficiaries . . 36B. Impact on Government Expenditure and Revenue .37C. Environmental Impact ................ i ................... 37D. Impact on Women and Tribal Groups .38E. Riss........................... 39
VI. AGREEMENTS REACHED AND RECOMNDATIONM . . 39
ANNEXES
1. Staff Development and TrainingTable A DLPP Actual Staffing Levels, 1988Table B DLPP Proposed Staffing Levels, 1993Table C Increase/Decrease in Total DLPP StaffTable D Projected Wastage of Senior DLPP National StaffTable E DLPP Senior Staff Requirements in 5 YearsTable F Incremental Senior Staff Required by Provinces in 5 YearsTable G Total Number of Senior Staff Required in 5 YearsTable H Projected Output and DLPP Recruitment of Diplomates and
GraduatesTable I Likely Supply and Demand of Incremental Senior Staff
Over Five Years
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2. Mobilizing Alienated LandPage 1 List of Proposed Short-Term Legal ChangesPage 2 List of Proposed Legal ConsolidationPage 3 Delegation of Powers Under the Land Act to East Sepik and
East New Britain ProvincesPage 4 Alienated Land (ha)Page 5 Estimates of Total Alienated Land
3. Customary Land IssuesAttachment A: East Sepik Legislative Scheme
4. Land and Resource Information Component: Training, Private SectorInvolvement and Cost RecoveryTable 1 Geodetic Adjustment and Topographic Mapping ScheduleTable 2 Major NMB Equipment
5. Logical FrameworkTable 1 Work Unit Personnel Services Division Outputs, Work Unit
InputsTable 2 Work Unit Personnel Services Division Staff ProjectionsTable 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. Mechanisms2. Department of Lands and Physical Planning Organization --1986-19883. Department of Lands and Physical Planning Organization--19894. DLPP Policy and Programming Division5. DLPP Personnel Services Division6. DLPP Regional Structure7. Proposed Provincial Lands Divisions
MAPS
IBRD - 20745IBRD - 13732R
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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 theBank's standard variable interest rate.
ProiectDescription: The five-year project would support the Government's Land
Mobilization Program which aims at: (a) creating a clearpolicy and legislative environment to promote investment inland; (b) enabling customary land owners to increasinglyparticipate 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 landadministration responsibilities from the nationalGovernment to the provincial governments in line with theOrganic Law on Provincial Government; and (e) optimizingthe use of the stock of alienated land. Specifically, itwould, within the framework of the Land MobilizationProgram, have the following components: (1) ProgramManagement, (2) General Institution Building, includingstrengthening the policy and institutional infrastructure,and improving personnel services, (3) Mobilizing AlienatedLand, (4) Mobilizing Customary Land, (5) Decentralizationof Alienated Land Administration, and (6) Land and ResourceInformation.
Benefits: Benefits under the project are expected from starting aprocess of improving the efficiency of land management,which has been recognized as a key systemic constraint ondevelopment of the economy. The main benefits derive frommore efficient land administration leading to lowertransaction costs, minimized delays in undertakinginvestments in productive sectors, greater revenuecollection, and incentives for land-users to invest inland-based activities. Clarification of clan authority inland distribution and registration of customary land wouldultimately reduce land disputes.
Risks: The main risks include ineffective management of the LandMobilization Program, inability to coordinate and absorb520 staff-months of technical assistance, quality of staffthat can be retained or recruited into key positions,inadequate budget allocations, unwillingness or inabilityof national government agencies and provinces to cooperateand use coordinating mechanisms, and the failure of parlia-ment to approve amendments to land laws. To minimize theserisks, the project design includes: a management componeLtand technical assistance for management and informationsystems; a Memorandum of Understanding on project implemen-tation between DLPP and other key departments and joint(Government and Bank) annual reviews to facilitateeffective management and implementation; provision ofconsultancy services to administer the technical assistanceand the responsibility for managing the work and absorbingthe output of technical assistance assigned to individualwork-units of the Department, staff training anddevelopment activities, and establishes the National LandManagement Committee. The advanced state of projectpreparation and the Government decision to beginimplementation of the Land Mobil:.zation Program onJanuary 1, 1989 demonstrates Government's commItment to theproject.
Estimated Costs: /a Local Foreign Total…US$ million -------
Program Management 5.7 4.1 s 8General Institution Building 2.1 1.1 3.2Mobilizing Alienated Land 4.7 0.9 5.6Mobilizing Customary Land 0.7 0.1 0.8Decentralization of AlienatedLand Administration 1.3 0.0 1.3
1.1 Papua New Guinea (PNG) is extremely diverse in topographicalfeatures, and is endowed with reliable and well distributed rainfall. Much ofthe land area is not suitable for cultivation because of excessive slope,altitude, or drainage problems. Areas at different altitudes provide compara-tive advantages for a variety of cash crops. A subsistence economy based ontuber crops, which provide high caloric off-take and balanced labor demands,has prevented famine or wide spread malnutrition. Of a population of3.5 million, some 852 of households are supported by subsistence farming andfishing.
1.2 Of PNG's land area of 46 million ha, only 14 million ha (30X) areconsidered suitable for agricultural production. About 3.2 million ha (7Z)are estimated to be in regular agricultural use and 3.7 million ha (8Z) in lowintensity use or rotational fallow. Thus, only about half of the land withagricultural potential is in regular use, although some of the rest might beused in long term rotational fallow cycles (shifting cultivation). The landin regular use represents 0.91 ha per head of population and 1.07 ha per headof rural population. Forests cover about 78? of the land area, of which somehas agricultural potential and about half seems to have an exploitable poten-tial of timber (15 million ha). Between 50,000 and 60,000 ha are being loggedannually. Significant mineral resources exist, but mining tends to operate inan enclave, with limited distribution of benefits except in the form ofgovernment revenue. Former customary owners of land used for mines are nowforcefully demanding a share of the mines' profits. Urban development isconstrained by the difficulties of obtaining land. Towns are expanding beyondthe areas of Government-owned (alienated) land, and many informal arrangementsare reported under which land owning groups lease land for 30 years to partiesbuilding individual houses. Because of the long and complex administrativeprocesses in issuing new leases, many transactions of land use rights takeplace illegally.
B. Land Tenure and Law
1.3 Two forms of land tenure exist in Papua New Guinea: land which hasbeen alienated by Government (a term which denotes the substitution of westernforms of tenure for customary ownership) and customary land.
Alienated Land
1.4 Prior to independence in 1975, the colonial administration acquiredor confiscated land which was required for public purposes or was consideredvacant and suitable for plantations. This alienated land is administered by
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the Department of Lands and Physical Planning (DLPP) under a Torrens-basedsystem of registered and guaranteed titles. Government leases th3 land outfor development purposes, normally for 99 year periods. The process ofallocation is set out in the Land Act and depends on the type of lease. Thereare r.ine separate lease types allocated in the categories of urban(residential and business), rural (residential, business, agricultural andpastoral), special purpose, and mission leases.
1.5 The stock of alienated land is estimated at 600,000 ha, of whichabout 30,000 ha are freehold, and 60,000 ha are used for public purposes(Annex 2). Only about 200,000 ha are leased to the private sector, comprisingmost of the country's export-oriented tree crop plantations and cattle ranchesand most of the urban areas. For the rest, about 310,000 ha, little informa-tion is available on current occupancy, potential and claims by former custo-mary owners. Growth of the pool of alienated land has been severelyrestricted since Independence. Government has been experiencing increasingdifficulty In purchasing land from customary land owners as their perceptionof the importance and value of land increases. Government has the legal powerto expropriate land for public purposes, but is understandably hesitant to useit. Therefore, negotiations are typically prolonged by the poor definition ofboundaries and land rights, and further complicated by the involvement ofdifferent national and provincial departments.
1.6 The present law governing alienated land in Papua New Guinea iscomplex and confusing (about 31 major Acts deal with land matters). Much ofthe legislation has been carried over from pre-Independence days, and theenactment of various laws at different times is based on inconsistentdevelopment goals. Development of alienated land is seriously inhibited bythis legislation requiring difficult administrative processes which weredesigned to protect customary land owners from excessive alienation of land.These procedures do not foster development and resulted (even during thepresence of highly trained administrative cadres) in considerable backlogs anddelays. The process of land allocation and setting of land lease rent leavesthe Minister for Lands with considerable discretionary powers for thetendering process applied to urban and business leases. The GovernmentRegulation Advisory Commission (1985) in analyzing the incentives forinvestment and their access to land concluded that it could "not see anysignificant wider public purpose in relation to leasehold land that wouldwarrant such high level of Government involvement,.
1.7 The collection of land lease rent from tenants involves differentnational and provincial agencies. DLPP has the overall responsibility forrent collection, but not the necessary authority over these agencies. Onlyabout 73Z of all rents due are being collected and credited to DLPP. It isnot known whether a higher percentage is being collected but not credited toDLPP. Considerable backlogs exist (Annex 9).
Customary Land
1.8 Customary land accounts for approximately 96 percent of the totalland mass and its ownership is vested in about 700 clans and lesser groups(kinship and family), title being based on historic occupation. The system ofcustomary ownership is an egalitarian one, which has prevented the emergence
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of a class of landless people or rural poor. Land use rights (cultivation,hunting, use of trees) are distributed by the clans to families and individualmembers according to their needs and can overlap. The people develop theircustomary land within the customary tenure regime. Government at both thenational and provincial levels facilitates this process through agriculturalextension and assistance and the piovision of appropriate infrastructure. Theimpact on the economy of this land development approach is significant. Landadministration costs are minimal and relate mainly to land dispute settlementactivity.
1.9 The customary system with its land allocation by clans to individualmembers has so far provided sufficient security of tenure to encourage clanmembers to produce 702 of PNG's coffee and 601 of its cocoa. This system,which was designed to provide each member with enough subsistence land, iscoming under increasing pressure from a growing population and a mountingdesire to plant more cash crops which give access to goods, prestige, andpower. There are signs that the egalitarian structure is weakening and thatindividual clan members manage by different means to receive larger land allo-cations than others. Land disputes between clans and among clan members arebecoming more acute.
1.10 To facilitate the mobilization of customary land for development, twolegal mechanisms exist: Land Tenure Conversion and Lease-Leaseback. UnderLand Tenure Conversion, if all clan members are in agreement, individual clanmembers or groups of up to six can apply to have a section of clan land regis-tered in their name and converted to freehold. The motive for such conver-sions is normally to enable applicants to qualify for a bank loan and increas-ingly to obtain security of title, although custom often prevails even afterconversion. In the absence of any provision for general registration ofcustomary land, a pragmatic approach has been adopted to enable traditionallandowners to get access to credit without creating freehold land. This isthe Lease-Leaseback system under which Government will lease land from custo-mary owners and then lease it back for a specified period to a legal entityformed from all or some of the members of the same group. The Lease-Leasebackis a registered interest which can be formally mortgaged by the customaryowners. On default, that clan can lose the land as the bank could sell thelease to a non-clan party. However, most of the mortgages are currently unre-gistered as there is a backlog of unregistered leases. Much of the lending ofthe Agriculture Development Bank of PNG (ABPNG) for tree crop development goesto land held under the Lease-Leaseback facility.
1.11 The national and some provincial Governments have contemplatedschemes involving the registration of customary land. In 1983 the task forceon Customary Land Issues recommended voluntary registration. In the absenceof a national law, East Sepik Province has passed two acts aimed at clarifyingthe authority of clans in land matters and at facilitating the participationof clans in development of their land (in rural and urban areas) in coopera-tion with outside investors (thus avoiding the process of Government acquiringthe land). Under these acts, land can be registered in the name of clansafter establishment of boundaries. Other provinces have indicated theirinterest in developing similar legislation. The national government is in theprocess of drafting framework legislation to delineate provincial authority inthis matter and to give general policy directions.
C. The Land Sector
Department of Lands and Physical Planning (DLPPF
1.12 DLPP is the lead land sector agency, with the main responsibility foradministering most land-related statutes including title registration,transfer and disposal of all alienated land, land acquisition, valuation ofall land subject to taxation, purchase, lease, etc., physical planningespecially in urban areas, and the geodetic network, topographic mapping,cadastral surveys and mapping.
1.13 Delays in land administration have become increasingly common. It isevident that DLPP has not been able to cope satisfactorily with the increasingdemands made by the developing economy. Several factors have affected itsperformance. Before Independence, DLPP was concerned mainly with alienatedland, but subsequently it took on responsibility for the control and adminis-tration of customary and alienated lands, coupled with the need to encouragedevelopment. Despite the change in goals, there was no increase in theDepartment's capacity or any alterations to its structure. The Departmentcontinued to be a highly centralized organization, whilst at the same time itlost many experienced officers to retirement or delegation to the provinces.Performance indicators for the Department's main functions are low. Forexample, in 1987 the department processed 2,120 leases (a quarter of whichwere Bougainville Copper Limited (BCL) leases and outstanding for over tenyears). 1,781 conveyances were approved and at the beginning of 1988 therewas over K 10 million (roughly one year's rents) in outstanding lease rentalfor some 18,000 leases. This compares with the total inventory of alienatedland which approximates 100,000 parcels of which approximately 33,000 areleased and 9,000 used for public purposes.
1.14 The services prorided by the different operational divisions of DLPPat the provincial level are not well coordinated. DLPP officers working inthe provinces are responsible to separate regional and headquarters units ofeach individual functional division. The extremely high level of interest inland matters has encouraged managers to become involved in individual landtransactions which their subordinates should handle. This tendency hasincreased as the number of experienced officers has been reduced and the tasksand pressures from all sectors have grown. The manual filing system andprocedural inefficiencies also contributed to major delays in almost all areasof land administration.
Land Administration Improvements
1.15 In recognition of these problems, DLPP developed and implemented aLand Administration Improvement Programme (LAIP) beginning in 1984. The basicobjectives were to: (a) improve the availability of information on land;(b) improve the efficiency of the Department by providing a systematic frame-work to maintain, update and retrieve information on land in both rural andurban areas; (c) to improve the land administration procedures and; (d) reor-ganize the Department to improve land administration in headquarters and theprovinces. The impact of the LAIP on the Department was significant, with abacklog of more than 8,000 pieces of correspondence cleared, a full fileinventory taken, and file management improved. The Department was reorganized
in December 1986 (Chart 2). Apart from the incorporation of the PhysicalPlanning Division (from the Department of Housing) and the Registrar of TitlesOffice (from the Department of Justice), the old division responsible for landadministration was abolished and a new regional hierarchy (although stationedat headquarters) introduced to give more emphasis to land development in theprovinces.
1.16 Further improvements to the Department's information base were begunin January 1987, with the introduction of the computer-based PNG LandInformation System (PNGLIS). This system, which is still being installed, isappropriate for the purpose, particularly in its transaction processing capa-bilities. Its objectives are ambitious, but the risks and costs associatedwith its introduction were judged to be necessary to elevate tiie Department'scapacity from the inherent limitations of a manual filing system. Onlythrough a computerized system would decentralization of land administration toRegional or Provincial Offices be possible. A team under contract with theAustralian International Development Assistance Bureau (AIDAB) is currentlyassisting in the installation of PNGLIS for data verification and storage.When fully operational in May 1989, the system will provides (a) easieraccess to land administration data for all Departmental staff, provincialoffices, other government departments, private organizations and the public;(b) better control over the processing of land transactions: all procedureswill be monitored, and the opportunities for malpractice will be reduced; (c)faster processing of land transactions; (d) effective monitoring of progresson applications, enabling the Department to respond to customer inquiries andto work within given time frames; (e) direct access for the provinces to thecentral land administration data base, thus allowing provincial processing ofapplications for land; and (f) capacity to hold on PNGLIS all textual informa-tion related to land: land zoning informatiorn, valuation data, survey data,and current land use.
1.17 DLPP's National Mapping Bureau (NMB) has complete but partly outdatedtopographic map coverage of the country (1:100,000) and in recent years hasfocused on large scale topographic mapping of urban areas (1:2000 and 1:2500).It has a cadastral mapping series (150,000) which is of low but acceptableaccuracy. The coverage of the main areas of PNG is incomplete (151 sheets)and the annual output of 41 sheets per year too small to reach the needed 392sheets. The NMB is also responsible for the geodetic control network, whichwhile extensive, needs adjustment and integration of its several separatesubsystems. Survey staff undertake cadastral surveys at a level of outputwhich involves delays of up to 6 months. DLPP's low fees discourage privatesurveyors from expanding their activities. The efficiency of DLPP surveyorscould be improved with better management and training. But the increasingdemand cannot be met without additional staff.
1.18 DLPP's topographic and cadastral maps are used extensively as basemaps by other agencies and the private sector, which then add thematic infor-mation of their own (location of utilities, road construction plans, naturalresource development plans, etc.). There is, however, little coordination ofmapping standards which would permit inexpensive overlays of maps from variousagencies needed for development planning. Such coordination would facilitatethe transition to computer-assisted mapping and multi-purpose analysis ofnatural resources, infrastructure, etc. While NMB's maps are indexed, those
of other agencies are usually not. The requirement of the Survey CoordinationAct that certain maps must be lodged with NMB is often not met. It should beenforced, and amended to require all maps and aerial photography to be lodgedwith NMB.
1.19 At the time of appraisal (October 1988). DLPP was comprised of thefollowing units and divisions (Chart 2): (1) Policy and Programming Division,(2) Finance and Administration Division, (3) Land Administration Division,(4) Surveys Division (including the National Mapping Bureau, the draftingoffice, and the cadastral surveys office), (5) Valuation Division,(6) Physical Planning Division, and (7) Land Information System Unit.
Land Mobilization Program
1.20 During the 1988 preparation of the long-term Land MobilizationProgram (para. 2.2). DLPP identified the need for stronger organizationalfocus of the Department to facilitate the adoption of program budgeting andprovide a basis for the gradual decentnalization of land administration func-tions to provincial governments. Under the reorganization, approved inDecember 1988 and beginning in January 1989, the Department is being organizedinto two major groupings, each supervised by a Deputy Secretary: Operations,and Technical Services (Chart 3). The Operations Division, working mainlythrough its regional and provincial staff consolidates the services of theformer Land Administration. Surveys, Physical Planning and ValuationDivisions. This represents a radical departure from the formerly functionalorganization, which hindered coordination of activities of staff withdifferent technical disciplines. It would be structured internally alongregional and provincial lines, with DLPP's regional and provincial managersbeing responsible for the activities of their respective units (Chart 3).Regional (Chart 6) and provincial managers would be able to develop coordi-nated work programs in response to the needs and priorities of provincialgovernments. The regional and provincial offices would be transitional struc-tures. Over time, their functions would be progressively taken over byprovincial governments. This process would occur following the delegation ofland administration functions to eligible provincial governments, and wouldinvolve first the secondment, and ultimately the transfer, of DLPP nationalstaff to the consolidated lands offices formed in those provinces. Thisprocess is already well under way in the case of East Sepik province.
1.21 The Technical Services grouping is comprised of the Offices of theRegistrar of Titles, Surveyor-General, Valuer-General and Chief PhysicalPlanner; the National Mapping Bureau; the Personnel Services Division; and thePolicy and Programming Division. This structure would remain intact evenafter full decentralization of land administration functions to the provinces.It would formulate policy and provide technical assistance and quality controlservices to the Operations Division and provincial land offices. The Officeof the Registrar of Titles would administer the national land title register.The Offices of the Surveyor-General, Valuer General, and Chief PhysicalPlanner would be responsible for upgrading and/or monitoring the professionalstandards of related technical staff.
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Sectoral Issues and Government Policy
1.22 While land is a reletively abundant resource, the inability toidentify, mobilize and transfer lands with productive potential hasconstrained investments and thereby, economic development. The landadministration system in Papua New Guinea has suffered in comparison withinvestments in other government services and as a result it has been unable tocope with the demands placed on it. The emergence of a modern economy, withrising demands on land administration threatens to overwhelm the presentsystem.
1.23 The Government has leased out less than half alienated land andlittle is known of the potential or occupancy of the remainder. Complex legaland administrative processes for allocating leases and institutionalweaknesses including shortage of management and professional skills, poorlydeveloped interagency coordination and the absence of a clear policyenvironment have created backlogs and delays in lease allocation to investors,and delays in the development of all sectors where land transfer is critical.In addition, the traditional systems of land distribution by clans is underpressure from a growing and more mobile population. Land disputes exceed thecapacity of the mediation mechanisms. There is a growing concern about theneed for national and provincial institutions and legislation to keep pacewith developments in land ownership. The lack of adequate land and resourceinformation further delays land mobilization.
1.24 In the past, Government has studied different land issues withcommissions and task forces which brought about some limited improvements. Insetting up the Land Mobilization Program, which DLPP has worked out in greatdetail in 1988 in consultation with the Bank, Government has recognized theurgent need for comprehensive action to address the multitude of issues in theland sector. The Land Mobilization Program has been approved by the Govern-ment's National Executive Council and the Resource Management Committee.
D. Bank Lending Strategy
1.25 The proposed project would be the first Bank project to focusentirely on the land sector. It is an integral part of the Bank's strategy tostrengthen Papua New Guinea's institutional and human resource capabilitiesand to support the critical sectors of agriculture, transport, mining andurban development. As land is critical to the continued development of allthese sectors, Bank support for strengthening the management of land adminis-tration would assist in the process of removing a constraint to investmentsand economic growth. Government has formulated the long-term (10-15 year)Land Mobilization Program to address land sector issues. This would requirelong-term Bank involvement and support in addressing multi-sectoral policy andinstitutional issues. The project would support the first five years of theLand Mobilization Program, which is part of the Government's Medium-TermDevelopment Strategy.
1.26 The experience of previous Bank projects has been evaluated in parti-cular in the Project Performance Audit Report (PPAR No. 7001) on thePopondetta Smallholder Oil Palm Development Project (Ln. 1333-PNG), the SecondAgricultural Credit Project (Cr. 1149-PNG) and the Southern Highlands Rural
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Development Project (Cr. 841-PNG). The lessons on project design relateespecially to complexity, implementation capacity, and technical assistance:(a) projects should have a clear focus and operate within existinginstitutions, even if this results in slower progress than could be achievedwith special project units; (b) project goals should be limited to realisticprojections of local implementation capacity (shortage of trained staff); (c)projects should be viewed as one stage in a sustainable long-term programapproach; (d) projects should emphasize institution building with upgrading ofstaff capabilities; (e) in cases where local staff have insufficientmanagement skills, one possible way of implementing certain activities may bethrough service contracts as done now with independent institutes for cashcrop research and with coffee extension service (Coffee Development Agency);and (f) technical assistance should be carefully monitored and managed toachieve the results planned in the limited available period. Past experiencehas also revealed that problems in land identification and mobilization aremajor constraints to agricultural and urban investments. Overcoming theseconstraints is a precondition to successful identification, preparation, andimplementation of investment activities, not only in the agricultural sector,but in other sectors such as urban development and transport. Furthermore,general economic management requires a better knowledge of the country's landresources. These lessons have been incorporated in the design of the project,especially in project management and irrilementation arrangements.
II. THE PROJECT
A. Project Origin and Concept
2.1 The Land Mobilization Program evolved from two previous initiativeswithin DLPP. The first, DLPP's Land Administration Improvement Program (LAIP)commenced in 1984 (para. 1.15) and involved improvement of land administrationthrough a reorganization of the Department and improvement of existingpractices. The second initiative was the development of the Land Evaluationand Demarcation Project (LEAD) which was first conceived in 1985 as a follow-on project to LAIP.
2.2 The Government of Australia financed the feasibility study for theLEAD project. This was undertaken by a consortium of Australian-basedconsultants,l/ which submitted a report in September 1987 (Project File,Documents 2.1 and 2.2). The major objective of the LEAD project was tofacilitate the implementation of agriculture and forestry projects throughimproved land administration, land resources evaluation and mappingactivities. Following a joint Bank/DLPP review of the LEAD project proposalsin March 1988, DLPP engaged a locally-based consultant financed under theUNDP/SNAPEM2/ Bank-executed technical assistance project to assist in furtherpreparation. The result of this work was the formulation by DLPP of an actionprogram of December 1988, "The Land Mobilization Program (LMP)".
1/ Pacific Agribusiness PTY Ltd.
2/ Strengthening of National and Provincial Economic Management.
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2.3 The LHP supports major institutional strengthening to enhance thecapacity of DLPP to deliver land services to the country as part ofGovernment' Medium Term Development Strategy. It represents the first fiveyears of a longer term program of development of the lands sector.
2.4 The proposed project has been designed as an institutional develop-ment project in support of the LMP. The project has several programmaticfeatures, as follows:
(a) the project scope, like LMP, encompasses the entire program of DLPPfor five years, i.i,iuding support (channeled through DLPP) to provin-cial governments wishing to progressively assume responsibilit7 forland administration functions;
(b) the organizational structures, processes and management of theproject are synonymous with those of the LMP;
(c) the Bank and the Government of Australia as cofinanciers would beinvolved in annual reviews of LMP (DLPP's work program and budgetfurmulation);
(d) the project costs are defined as the incremental costs of the LMPover the five-year project period, using the 1988 DLPP budget as abaseline, and include incremental costs of contract (non-citizen) andlocal staff, and operating costs and the total costs of civil works,technical assistance, and major equipment; and
(f) the project cost structure has been designed to reflect Government'sstandard budget procedures and cost categories, and to facilitate theintroduction of a program budgeting/management approach.
B. Objectives
2.5 The overall goal of the Land Mobilization Program is to contribute toeconomic growth through more productive use of land resources throughout thecountry, whilst promoting equity, employment, participation and socialstability. It is intended to encourage land-users (clan groups, jointventures, companies, individuals and Government agencies) to invest in appro-priate land-based activities by achieving the following objectives over 15-20years:
(a) create a clear policy and legislative environment to promote invest-ment in land;
(b) enable customary land owners to increasingly participate in thedevelopment of their own land;
(c) provide effective land services to all land users (surveying, valua-tion, land transfer and disposal, mapping, title registration, landacquisition, dispute settlement, physical planning and landinformation);
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(d) transfer land administration responsibilities from the nationalGovernment to the provincial governments in line with the country'sOrganic Law on Provincial Government; and
(e) optimize the use of the stock of alienated land.
2.6 Inherent in these objectives is the promotion of the mobilization(registration and development) of land and its suitable usage. Traditionally,DLPP has been a passive supplier of land services to clients requesting thoseservices. Through the Land Mobilization Program, DLPP would be strengthenedthrough better organizational focus, simplified procedures and staff trainingto more actively promote land-based activities together with the provinces.
C. Main Features
2.7 The project would support all six components of the Land MobilizationProgram with technical assistance, additional contract and local staff,equipment and buildings. These components with their specific objectives tobe achieved within 5-7 years, are!
(1) Program Management: improve land use planning by establishing theinterdepartmental National Land Management Committee; improve themanagement of land administration by procedural, organizational andlegislative measures; improve and maintain professional standards andthe quality of land services by staff training and sharper organiza-tional focus; provide the necessary physical facilities for the LMPand staff housing in the provinces.
(2) General Institution Building: establish improved land policies,legislation and procedures; improve the capacity of DLPP to developpolicy, promote land registration for development, deliver services,and generate land-based revenues; improve the land dispute settlementcapacity; and improve DLPP's staff capacity by increasing staffnumbers and intensive staff training.
(3) Mobilizing Alienated Land: develop an improved and cost-effectivesystem for administration of alienated land by simplifying proce-dures; rationalize and mobilize the stock of about 300,000 ha ofunallocated alienated land; address a backlog of about 7,000incomplete land administration transactions; and improve the systemof land rent setting and collection.
(4) Mobilizing Customary Land: develop an acceptable and cost-effectiveapproach to customary land registration and mobilization for economicdevelopment; and expedite the mobilization of custcmary land byestablishing national framework legislation and assistance toProvinces to pass their own legislation and to develop provincialprocedures.
(5) Decentralization of Alienated Land Administration: develop an accep-table and cost-effective system for, and expedite, the decen-tralization of land administration functions by assisting five
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Provinces to set up their system of land policy development and landadministration.
(6) Land and Resource Information: develop an up-to-date informationbase for customary and alienated land (co-taining title, land-use,geodetic, cadastral and topographic information) by implementingPNGLIS and by updating topographical maps; develop new maps requiredfor project planning; and adjust the geodetic network.
D. Detailed Project Description
2.8 The principal activities to be undertaken during the five years ofthe project are described below. Each component or subcomponent correspondsto a particular DLPP work unit (and unit number), for which detailed perfor-mance indicators (outputs) have been developed (Annex 5 and Project FileDocument 1.1). The project would support these activities by providing forthe incremental budget costs covering technical assistance, contract and localstaff, operating costs, and equipment and buildings.
Component 1: Program Management
2.9 The Program Management component would improve the overall managementof the lands sector, through the establishment of suitable management struc-tures and procedures, and the strengthening of professional standards andquality control procedures within DLPP. The component consists of five sub-components as follows:
Management Subcomponent (1.1)
2.10 This subcomponent would be primarily carried out by the ProgramManagement Branch of the Policy and Programming Division (Chart 4). TheFinance and Publicity Branches of that Division would play a subsidiary role.Key activities to be conducted includet
(a) overall management and coordination of the LMP, including the intro-duction of program budgeting, management, accounting and monitoringprocedures; assisted by a Management Consultant (36 staff-months) anda Management Information System Consultant (10 staff-months) (Annex8, positions 1.1.2 and 1.1.3); assurances were obtained that thereorganization of DLPP would be completed by December 31, 1989(para. 6.1(a)).
(b) reinstitution of regularly scheduled meetings of the ProgramManagement Committee (PMC) and provision of secretariat support forit; assurances were obtained on reinstitution of PMC meetings byDecember 31, 1989, (para. 6.1(c));
(c) establishment and servicing of a National Land Management Committee(NLMC) with representation of different departments; assurances wereobtained on the establishment of NLMC by December 31, 1989 (para.6.1(b));
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(d) oversight of a capital works program to construct three regionaloffices (at Ht. Hagen, Lae, and Rabaul) and eight provincial offices,about 90 staff houses in the provinces, extension of the building ofthe National Happing Bureau, and construction of the building for theLand Information Center;
(e) design and conduct of publicity programs to encourage land mobiliza-tion by the Publicity Branch; supported by a Human CommunicationConsultant (8 staff-months) (Annex 8, position 1.1.4); and,
(f) coordination and management of technical assistance inputs; supportedby an accounting/management firm (15 staff-months) (para. 3.23 andAnnex 8, position 1.1.1).
Office of Registrar of Titles Subcomponent (1.2)
2.11 Whilst these functions have been transferred from the Department ofJustice to DLPP, a Registrar of Titles, still to be appointed, would besupported by:
(a) a Land Registration Specialist under the UNDP/SNAPEM project whowould undertake a study of the nature and extent of about 7,000incomplete land administration transactions as identified by PNGLIS;supporteed by a land registration consultant (2 staff-months, Annex8, position 1.2.2); DLPP would thereafter prepare and implement anaction plan, if necessary with possible constr,,ction assistance.Assurances were obtained that the study would be completed byDecember 31, 1990 and an action plan implemented (para. 6.1d).
(b) securing of title documentation by microfiche; supported by contractservices (12 staff-months) (Annex 8, position 1.2.1); and
(c) provision of technical support to regional and provincial titleoffices, which would gradually be set up during the decentralizationprocess and be involved in registration of customary land.
Office of Surveyor General Subcomponent (1.3)
2.12 Cadastral surveys are required for the allocation of alienated land,for subdivision of town plots, and for tenure conversion and land acquisition.They are undertaken by DLPP staff against a fee which does not cover DLPPtotal costs. The Surveyor General would no longer be in charge of all surveystaff who would now work under the new Operations Division. In a stafffunction this office would undertake:
(a) definition and maintenance of professional standards for all cada-stral surveys undertaken by the Operation Division in Regional andProvincial Offices and by private surveyors;
(b) provision of technical support to regional and provincial surveyors;
(c) determination of an appropriate means of survey and demarcation tosupport customary land registration, supported by a survey consultant(3 staff-months, Annex 8, position 1.3.1);
-13.
(d) study the role of private surveyors in undertaking surveys requiredfor land allocation and review of DLPP survey fees by December 31.190, to encourage private surveyor participation and carry out anaction plan; assurances to this effect were obtained duringnegotiations (para. 6.1(e)).
Office of Valuer-General Subcomponent (1.4)
2.13 Valuation is required to determine values of alienated land whichform the basis of allotment fees and annual rents. With rapidly changingeconomic conditions, this task is becoming more difficult. This office wouldperform a staff function as valuation staff would work under the newOperations Division in DLPP's Regional and Provincial Offices. It wouldundertake:
(a) maintenance of a quality control role for all valuations;
(b) provision of technical support for regional and provincial valuers ofDLPP's Operations Division:
(c) review of land lease rent determination policies in cooperation withthe Policy and Programming Division (para. 2.16);
(d) investigation of the appropriateness of computer-assisted valuationtechniques; supported by a Valuation Consultant working also on rentdetermination (para. 2.16, Annex 8, position 2.1.2).
Office of Chief Physical Planner Subcomponent (1.5)
2.14 The previous Physical Planning Division undertook town planning incooperation with the Settlement Division of the Department of Housing. Thiswould be done under LMP by the physical planning staff of the Regional andProvincial offices of DLPP's Operations Division. The Physical Planning Actwhich clarifies town planning rules and responsibilities is in advanced stagesof the legislative process. This office would undertake:
(a) monitoring the work output of physical planning staff working in theOperation Division and the provinces to ensure professional standardsand adherence to procedures; and providing of technical support;
(b) preparation of physical planning manuals; supported by a PhysicalPlanning Consultant (8 staff-months, Annex 8, position 1.5.1.); and
(c) extending the professional capacity of physical planners to includeperi-urban and rural planning skills and to prepare rural physicalplanning exercises; supported by a consultant (6 staff-months, Annex8, position 1.5.2).
Component 2: General Institution BuildinR
2.15 This component seeks to improve the capacity of the Department todevelop land related policies, promote the utilization of land registrationfor development purposes, deliver effective and responsive land services to
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clients and to generate revenue from the delivery of those services. ThePolicy and Programming Division would be strengthened for this task by anOrganization and Management Specialist (36 staff-months, Annex 8, position2.1.8). The component consists of two subcomponents as follows:
Policy and Institutional Infrastructure Subcomponent (2.1)
2.16 This subcomponent would strengthen the policy-making capacity of theDepartment, and introduce simplified and consolidated land legislation andprocedures to enable a more efficient delivery of land services. It would beimplemented by the Policy and Research Branch of the Policy and ProgrammingDivision. Its key activities would include:
(a) completion of the restructuring of DLPP in association with theDepartment of Personnel Management;
(b) preparation of procedures manuals for the Department in associationwith relevant technical specialists; supported by technicalassistance (Annex 8, position 2.1.6);
'c) review of the (alienated) land lease rent determination policies ofDLPP in relation to leasehold properties in cooperation with theValuer General (para. 2.13); supported by a consultant (2 staff-months, Annex 8, position 2.1.1); assurances were obtained that thereview would be completed by December 31, 1989 and that a system,taking into account the comments of the Bank on the results of thereview, would be established by January 1, 1991; review the existingrent collection systems in operation in DLPP and Department ofFinance and Planning; supported by the management informationconsultant (para 2.10(a) and Annex 8, position 1.1.3); assuranceswere obtained that the review would be completed by June 30, 1990 anda system, taking into account the comments of the Bank on the resultsof the review, be established by December 31, 1991 (para. 6.2(f));
(d) preparation of draft legislative and procedural amendments to supportimprovements in administration procedures for alienated land(Annex 2, Page 1) supported by a consultant Lawyer (7 staff-months,Annex 8, position 2.1.4); assurances were obtained that this would becompleted by June 30, 1990 (para. 6.2(g));
(e) study of alternative land allocation and transfer systems foralienated land comparing the present system of multilayeredGovernment controls and interventions with other systems allowingmarket forces to play a larger role in determining land allocationtransfers and values; supported by a Land Tenure Consultant (3 staff-months) (Annex 8, position 2.1.7); assurances were obtained that thestudy would be completed by December 31, 1992 (para. 6.2(h));
(f) review of the national land legislation for consolidation and simpli-fication including a review of the role of the Land Board; anddrafting of such legislation. Its is envisaged that about 31 Acts
and sections of Acts would be consolidated to 4 or 5 major Land Actsby the end of the project; supported by a Lawyer Consultant (7 staff-months, Annex 8, position 2.1.4; extension of contract of (d) above);
(g) review the development of a national framework legislation forcustomary land dealing and registration and the relationship of suchlegislation to provincial governments to establish policy options forthe mobilization and management of customary land; supported by aLawyer/Anthropological Consultant (7 staff-months, Annex 8, position2.1.3); assurances were obtained that the consultant would beappointed no later than December 31, 1990 (para. 6.2(i));
(h) review of existing land dispute settlement mechanisms and investiga-tion of options for resolution of existing difficulties together withthe Department of Justice and the Chief Magistrate; supported by aLand Dispute Settlement Consultant (4 staff-months, Annex 8, position2.1.5). Assurances were obtained on completion of the review byDecember 31, 1990 and the furnishing to the Bank of an action planfor improvement of such mechanisms by December 31, 1991 and thecarrying out of such action plan, taking into account the Bankcomments, thereon (para. 6.2(j));
(i) support the Surveyor General in reviewing DLPP's fees for cadastralsurveys and their influence on participation of private surveyors;and
(j) drafting of amendments to the Survey Coordination Act to require allorganizations producing maps and aerial photography to deposit copieswith the National Mapping Bureau (NMB); assurances were obtained thatthe amendments would be drafted by December 31, 1990 (para. 6.2(k)).
Personnel Services Subcomponent (2.2)
2.17 This subcomponent would strengthen the capacity of the Department andthe provinces through the development of the technical, managerial, andadministrative skills of DLPP and provincial lands staff (detailed inAnnex 1). The subcomponent would be implemented by the new Personnel ServicesDivision, performing the following key activitiess
(a) recruitment of suitable staff to DLPP and filling of key positions(para. 4.22). DLPP's staff strength would increase from 424 to 570by the end of the project. Assurances were obtained on the fillingof these key positions by December 31, 1989 (para. 6.2(1));
(b) development of appropriate staff training policies and programs,including management training (especially for staff in the OperationsDivision), training in administrative procedures, and training forprovincial government staff to support the introduction of customaryland registration; supported by a Training Consultant (40 staff-months, Annex 8, position 2.2.1); 75 training modules would bedeveloped and about 1,000 DLPP and Provincial staff would attendtraining functions on different subjects (para. 4.25, Annex 1 andAnnex 5, Table 1);
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(c) coordination of technical training requirements for DLPP, includingoverseas training and work attachments;
td) development of career path structures and regular staff appraisalmechanisms for all DLPP staff; and
(e) conduct of ongoing personnel administration functions.
Component 3: Mobilizing Alienated Land
2.18 This component would comprise the first five years of a longer termprogram to develop an improved and cost effective system of administration ofalienated land. The existing stock of alienated land would be rationalized,underutilized land mobilized, and the use of that land optimized. TheOperations Division would administer the component, supported by the followingactivities undertaken by other work unitss (I) Policy and Research Branch ofPolicy and Programming Division (Subcomponent 2.1): (a) short term legalchanges in land administration procedures, (b) development of proceduresmanuals, tc) consolidation of land legislation, (d) study on different systemsof land allocation and transfer involving market forces; (II) Land InformationUnit (Subcomponent 6.1): (a) Implementation of PNGLIS and training of staffin its operation; (III) Office of Registrar of Titles (Subcomponent 1.2):(a) review of organization and procedures of the Titles Registry,(b) addressing a backlog of about 7,000 incomplete land administrationtransactions, (c) securing land titles records; (IV) Personnel ServicesDivision (subcomponent (2.2): training of staff in management andadministration procedures.
2.19 This component comprises four subcomponents, corresponding to thefour regional offices of the Operations Division: Southern Region (3.1);Northern Region (3.2); Islands Region (3.3); and Highlands Region (3.4).Each of these regional offices would undertake the following key a:tivities intheir respective regions:
(a) the appointment of Regional Managers by December 31, 1989: qualifiedand experienced Managers should be appointed to these positions andit is envisaged that these positions will be advertised both overseasand locally;
(b) the appointment of Provincial Managers: most of these positionswould be filled from within the department; however, the positionswill be advertised locally;
(c) establish coordinated work programs for the provincial offices andfor the regional offices, ensuring the efforts of staff from the fourformer divisions (land administration, surveying, valuation, physicalplanning) are coordinated;
(d) promote the use of the Lease-Leaseback and Tenure Conversionmechanisms to customary landowners and their incorporation into landor business groups to support the mobilization of customary land;
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(e) take stock of alienated land which has not been leased (about 300,000ha) involving a survey of all parcels to determine current land useand occupancy; land use potential; evaluation of all underutilizedparcels; and undertaking appropriate allocation, forfeiture orrelease action on those parcels in response to the evaluation;
(f) undertake land acquisitions as required for public purposes;
(g) provide land services (land administration, surveys, valuation andphysical planning) to existing and potential land users;
(h) ensure the collection of monies owed to Government for lease rentalsand other land-related service charges; and
(i) reduce arrears in land administration processing.
Component 4: Mobilizing Customary Land
2.20 This component aims at facilitating the participation of customarylandowners in the development of their own land. It is the exploratory phaseof a longer term program aiming at the development of acceptable and cost-effective methods for mobilizing customary land. Recent procedural and legalchanges which improved the Lease-Leaseback process were a first step in thisdirection. The componDent would be administered by the Customary Land Unit inthe Provincial Services Branch of the Policy and Programming Division. Theiractivities would be supported by the following activities undertaken by otherwork units: i. Office of Surveyor-General (Subcomponent 1.3): (a) study ondemarcation of customary land; II. Policy and Research Branch of Policy andProgramming Division (Subcomponent 2.1): (a) preparation of national frame-work legislation on customary land, supported by technical assistance (Annex8, position 2.1.3), (b) study of the land dispute settlement system;III. Operations Division (Component 3), (a) promotion of Lease/Leaseback andTenure Conversion as short-term customary land registration measures.
2.21 Key activities for the implementation of this component would be asfollows:
(a) liaison with and assistance to the provincial Land ManagementCommittees in the formulation of a policy framework for customaryland mobilization and registration for each province; such policiesare expected to exist in three provinces by the end of the project;
(b) assistance to the provinces to draft customary land registrationlegislation by a Sociel/Anthropologist and a Lawyer (3 staff-monthseach, Annex 8, positions 4.01 and 4.02); resulting in enactment ofprovincial customary land legislation in two provinces during theproject;
(c) assistance to the provinces to develop the necessary administrativeprocedures to support the legislation and associated proceduresmanuals assisted by a Manual Writing Consultant (6 staff-months,Annex 8, position 2.1.6); and
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(d) coordination of the establishment of suitable organization structuresto administer the legislation.
The Provincial Services Branch of the Policy and Programming Division willliaise with provincial government through newly established provincial LandXanagement Comittees (LHCs) to introduce customary land registration in theprovinces. DLPP's role is envisaged as a facilitator, coordinator and aprovider of technical assistance to the provinces in the establishment andmaintenance of a customary land registration capacity.
Component 5: Decentralization of Alienated Land Administration
2.22 In support of the national Government's decentralization policy, theobjective of this component would be to manage and coordinate the decentrali-zation of the administration of alienated land from the national to provincialgovernments through the delegation of powers to the provinces. The eventualoutcome of the Government decentralization policy in some 10-15 years would bethe transfer of all land administration activities to the provincial govern-ments, with the role of DLPP contracting to policy formulation, technicalsupport and quality control in the lands sectcr. The component would beadministered by the Provincial Service Branch of the Policy and ProgrammingDivision.
2.23 Key activities to be undertaken under this component include:
(a) the appointment of staff to the Provincial Services Branch of thePolicy and Programming Division;
(b) liaison with the provincial Land Xanagement Committees to ensure thatsuitable land management policies are developed;
(c) liaison with the provinces and with the Department of PersonnelManagement to establish consolidated Lands Divisions within thedepartments of each province;
(d) provision of assistance to the province with the establishment ofprocedures and the development of a procedures manual;
(e) coordination of the transfer of DLPP staff to the province.
Component 6: Land and Resource Information
2.24 DLPP would develop an up-to-date information base for both alienatedand customary land through this component. This information base wouldconsist of title, land use, cadastral, geodetic and topographical informationand would be readily available to all land users and service agencies. Thiswill be achieved through two subcomponents:
- implementation and development of a transaction processing and infor-mation system, the Papua New Guinea Land Information System (PNGLIS);and
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- the enhancement of the mapping capacity of the National MappingBureau (NMB).
PNGLIS Subcomponent (6.1)
2.25 The PNGLIS subcomponent is designed to support the implementation ofPNGLIS into the operational units of the Department, to oversee the develop-ment of PNGLIS into a major corporate data system for agencies with landrelated activities, to support the monitoring of LMP activities, and toprovide the transaction processing facility to support the mobilization ofalienated and customary land and the decentralization components of the LMP.The subcomponent would be administered by the Land Information Unit, function-ing as a branch of the Policy and Programming Division. It would be supportedby a Management Specialist and a Computer Operation Specialist (36 staff-months each, Annex 8, position 6.1.1 and 6.1.2). It would undertake thefollowing key activities:
(a) installation of the system into the regional offices of theOperations Division, to support the land administration, survey,valuation and physical planning work programs and the collection ofrevenue;
(b) installation of the system in each of the DLPP provincial offices toprovide enquiry-only access to the database;
(c) provision of initial training to staff on implementation of thesystem;
gd) completion of the land administration data verification exercisecurrently underway with a team of Survey Draftsmen financed by theGovernment of Australia (66 staff-months, Annex 8, Position 6.1.3);
(e) coordination of the data capture for surveys, valuation and physicalplanning to support their administrative processes;
(f) capture of the spatial references of the centroids of land parcels toenable spatial searches of the database to be conducted;
(g) investigation of the linkage of the PNGLIS with NHB computer systemsand strengthening the spatial referencing of both systems; supportedby a consultant (2 staff-months, Annex 8, position 6.1.5); and
(h) investigation of the linkage of PNGLIS with Papua New Guinea ResourceInformation System (PNGRIS) maintained by the Department of Agricul-ture and Livestock (DAL) to strengthen the land use planning capabi-lities of the system; supported by a consultant (1 staff-month, Annex8, position 6.1.4).
National Mapping 3ureau Subcomponent (6.2)
2.26 This subcomponent would over five years strengthen NMB's capacity toproduce more detailed maps and other land information required for landadministration and land use planning. The key activities would be grouped
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into: (i) policy development and coordination; (ii) geodetic network;(iii) topographic maps; (iv) cadastral mapping; (v) IGOS mapping system; and(vi) establishment of a computing section in NMB.
2.27 (i) Policy Development and Coordination. Key activities wouldinclude:
(a) Establishment of a Mapping Advisory Committee as a subcommittee tothe National Land Management Committee (NLHC). Chaired by theDirector of NMB it would include representatives of the Departmentsof Agriculture and Livestock, Environment and Conservation, Mineralsand Energy, Forestry, Works, the Association of Surveyors, theprivate sector and the Surveyor General. Its role would be to:(i) develop specifications for standard mapping; (ii) decide ontechnologies for standard mapping; (iii) liaise and coordinate withacademic institutions on teaching surveying and mapping; andcoordinate mapping activities of other Government agencies whichwould continue to produce their own specialized maps; assurances wereobtained on the establishment of the Mapping Advisory Committee byDecember 31, 1989 (para. 6.2(b));
(b) assist the Policy and Programming Division in amending the SurveyCoordination Act, to require all organizations producing maps oraerial photography to deposit copies with NMB (para. 2.16);
(c) assist the Land Information Unit with their investigation into thelinkage of PNGLIS and NMB computer facilities (para. 2.25); and
(d) establish work programs for the NMB's activities in liaison with theNational Mapping Advisory Committee.
2.28 (ii) Geodetic Network. The geodetic network provides the frameworkfor mapping, a reference system for national coordinates, and a base forscientific observations such as isostatic adjustments (tectonic plate move-ments). Zstablished in the 1950s and 1960s, it requires comprehensive adjust-ments in six phases over five years: data extraction and compilation ofexisting records; densification of network with more geodetic stations;leveling and sea level determination to improve vertical control; determina-tion of geoid (earth shape) appropriate to PNG; preliminary adjustment; finaladjustment. To support this adjustment the key project activities would bethe provision of (a) technical assistance financed by the Government ofAustralia: Geodetic Surveyors (48 staff-months); Geodetic Datum Specialists(27 staff-months); and Data Processing Systems Specialist (3 staff-months)(Annex 8, positions 6.2.2, 6.2.3, and 6.2.5); (b) contract services fordensification of the existing network, leveling and sea level determinations(70 staff-months, Annex 8, position 6.2.4); (c) computing equipment; (d) threeglobal positioning systems (GPS) for densification; and (e) a geodetic networkadjustment software package such as GANET (list of equipment in Annex 4,Table 2).
2.29 (iii) Topographic Maps. The main topographic maps covering all ofPNG at 1:100,000 scale (280 sheets) were produced between 1969 and 1980 and
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most now require updating to depict subsequent changes (roads. urban expan-sion, villages etc.) for which satellite imagery provides the most effectivemeans. The other topographic maps cover at arge scales (1:2000 and 1:2500)the main urban centres. The lack of extensiv topographic mapping at a mediumscale (ls25,000) seriously impedes planning, development and administration.Satellite imagery would be the most cost-effective means to produce these mapswhen such technology for 1:25,000 scale topographic mapping becomes available,which is expected in about four years. The topographic mapping program would,therefore, include the following activities:
(a) a pilot study to investigate and define the use of remote sensingtechnology for topographic mapping; supported by a Remote SensingConsultant financed by the Government of Australia (18 staff-months,Annex 8, positicn 6.2.1);
(b) installation of remote sensing image processing systems in NMB andtraining of NMB staff (two NMB staff are currently being trained inFrance);
(c) updating 280 sheets of 1:100,000 topographic maps;
(d) production of 8 sheets of 1:25,000 topographic maps (about 20 sheetsper year thereafter); and
(e) continuation of urban large-scale mapping.
2.30 (iv) Cadastral Mapping. The main cadastral map series is(1:50,000, Milinch series) produced by enlarging 1:100,000 scale topographicmaps. Land parcels are charted on these maps using coordinates derived fromthe cadastral survey or connections to topographic features, thus exaggeratingthe inaccuracies of the 1:100,000 topographic maps. These cadastral maps,however, depict clear enough the position of individual land parcels in rela-tion to other parcels and topographic features. But the output of four sheetsper year does not meet requirements and only 151 sheets of the requiredcoverage of 392 sheets have been completed. Priorities are decided by NMB inconsultation with the Operations Division. The key activity would be toincrease the output to allow completion of the series in about 15 years byincreasing staff.
2.31 (v) IGOS Mapping System. NMB purchased an IGOS digital mappingsystem in 1986 - a major investment in technology. The system automatesproduction of large scale town maps and medium scale, e.g. 1:25,000 topo-graphic maps. Technical problems prolonged commissioning the system, whichseem to have been resolved by the suppliers' (M&S International) formalundertakings to make the system operational by early 1989. The key activ,tywould be to make the IGOS Mapping System fully operational.
2.32 (vi) Computing Section of NMB. NMB's computing requirements willincrease drastically with the adjustment of the geodetic network, the aerotri-angulation for additional mapping, and the increasing data processing needs ofthe surveyors of the Operations Division. This would exceed the capacity ofthe National Computing Center (NCC) now used through terminals at NMB. Theadjustment of the geodetic network will require ready access to scientific
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computing facilities. Such a facility is also needed to link IGOS's workstations and to store IGOS's and other NMB data files. The key activitieswould, therefore, be:
(a) establishment of a Computing Section in NMB;
(b) construction of a Land Information Processing Center to house NMB andPNGLIS computing systems under subcomponent 1.1;
(c) acquisition and installation of a scientific (32 bit) computer;
(d) extension of NMB office facilities to house additional staff andequipment under subcomponent 1.1.
III. PROJECT COST AND FINANCING
A. Project Cost
3.1 Project cost has been defined as the incremental costs resulting fromthe first five years of the Government's Land Mobilization Program, using the1988 DLPP budget as a baseline. The project cost structure has been designedto reflect the Government's standard budget procedures and budget categories,and to facilitate the program budgeting/management system introduced in DLPPbeginning in 1989.
3.2 Total Land Mobilization Program costs over five years are expected tobe K 74.4 million (US$82.7 million).
3.3 Total project costs are estimated at about K 38.5 million(US$42.8 million), of which K 3.9 million (US$4.3 million) would be in dutiesand taxes, and K 16.5 million (US$18.3 million) in foreign exchange(Table 3.1). Consultants' base costs (professional fees, overheads, traveland allowances) have been estimated on the basis of recent consultingcontracts in Papua New Guinea. Capital works (civil works) costs are based onstandard cost estimates from the Department of Works (DoW). Capital assets(equipment and furniture) costs are based on recent price quotations fromsuppliers, cross-checked with prices of comparable units recently procured.Unit prices for salaries are based on the current schedule of public servicesalary rates for citizen and non-citizen (contract staff) employees issued bythe Department of Personnel Management (DPM). All other operating costs arebased on standard costs used by the Department of Finance and Planning (DFP)for preparing budgets. Base costs calculated in October 1988 prices, includesphysical contingencies of 52 and price contingencies based on estimated annuallocal inflation of 5Z for 1989-93, and estimated annual foreign inflation of32 for 1989-90 and 4X thereafter. Table 3.1 presents a summary of costestimates and details are given in Annex 6, Tables 1-5.
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Trble S 1 PiN0JT Ct#T UII6IIY L
S Totalnar 'Orn nsA low) a Porajmn ease
tocal Foreign Total LoUCl Foreign Totel Exchange Coats
Land Administration 1,195.1 45.0 1,240.1 1,327.9 S0.0 1,377.9 4 4
F. Land and Reource InformationLand Infor_tion Unit 1,224.1 8,320.4 4,S44.5 1,860.1 8,689.8 5,049.4 73 14National Mapping Bureau 4,190.1 5,689.3 9,879.4 4,655.6 6,321.5 10,977.1 ss 30
Sub-total Land and RsourceInformation 5414.2 9,0Z 097 14l4 8 01508 1SA 1-0266 12 44
Total Baseline Coats 1Lh493.L 14-590-8 33ss89 20,547.9 16.212.0 I 9E 44 1Physical Contingencies 924.7 7S9.5 1,654.2 1,027.4 810.6 1,638.0 44 5
Total Project Costa 220S6.2 1L477L2 38 SlS S 24.484.e 18Q30 70 a 1
LI Including taxe" and duties *mounting to US64.S million equivalent.
B. Financing
3.4 The proposed IBRD loan of US$19.6 million would finance 50.9Z oftotal project cost, net of duties and taxes (US$4.3 million), equivalent to60.6? of foreign exchange cost and 42.0? of local cost, and will be at thestandard variable interest rate for 20 years with a 5-year grace period. TheGovernment of Australia would cofinance (parallel finance) some of thetechnical assistance, capital works (civil works), and capital assets
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(equipment) with a grant of US$6.4 million, bringing total external financingto US$26.0 million or 67X of project cost net of duties and taxes, covering90? of foreign cost and 461 of local cost. The Government of Papua New Guinea(GOPNG) would provide US$16.8 million (of which US$4.3 million is taxes andduties), about 33? of project cost net of taxes and duties. The Bank wouldfinance part of incremental staff salaries on a declining basis (other thancontract staff financed at 100?). Over the project implementation period,Government would meet a progressively larger share of incremental staff sala-ries, increasing from 20Z in 1989 to 60? in 1993. This gradual increase inGovernment's share over a five-year period is considered reasonable since theproject is the first phase of a longer-term program covering about 10-15years. Moreover, given the 30? increase in total expenditures for staff sala-ries, by the end of the five-year project implementation period, compared withthe Government's budget allocation in 1988, and the importance of staffing tomeet the institutional development objectives of the project, it would beappropriate to gradually increase the Government's expected contribution inthe context of constraints on budgetary resources. Anticipated increases inGovernment revenues from mineral exploitation are not expected until after thefive-year project period. The financing plan is summarized in Table 3.2.Assurances were obtained, that prior to effectiveness, the Australian GrantAgreement would be effective (para. 6.2(a)).
Tot l 19.561.6 45.7 60400.0 16.0 16.831.1 89.8 42.792.6 100.0
3.5 Retroactive Financing. Provision has been made for retroactivefinancing of eligible expenditures incurred after January 1, 1989. These
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expenditures would consist of technical assistance, capital works (civilworks), capital assets (equipment and furniture) and staff salaries and areestimated at about US$1 million. All items financed retroactively would beprocured in accordance with Bank guidelines.
C. Procurement
3.6 The proposed procurement arrangements are sun-arized in Table 3.3.
Capital Works (Civil Works) 5.7 2.7/b 8.4(5.7) (0.0) (5.7)
Capital Assets (Equipment and 5.4 3.0/b 8.4Furniture) (5.4) (0.0) (5.4)
Incremental Staff Salaries 9.0 9.0(5.9) (5.9)
Travel 1.1 1.1(0.0) (0.0)
Utilities 2.4 2.4(0.0) (0.0)
Materials and Supplies 2.1 2.1(0.0) (0.0)
Plant and Transport 0.6 0.6(0.0) (0.0)
Special Services 3.2 3.2(0.0) (0.0)
Other 0.9 0.9(0.0) (0.0)
Other Emoluments 1.2 1.2(0.0) (0.0)
Total 5.4 5.7 2.6 29.1 42.8(5.4) (5.7) (2.6) (5.9) (19.6)
/a Costs are inclusive of contingencies, duties and taxes. Figures inparentheses are to be financed by IBRD.
/b Procurement would follow the Government of Australia procedures.
3.7 Technical Assistance (US$2.6 million). Consultancy services for279 staff-months of specialized technical assistance financed by the Bankwould be procured in accordance with Bank guidelines.
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3.8 Capital Works (Civil Works) (US$5.7 million) financed under the loanconsist of 11, small, geographically dispersed, office buildings and about 90staff houses in the provinces, would be unsuitable for InternationalCompetitive Bidding (ICB). Individual contracts for specific locations wouldrange from about US$100,000 to US$1 million. Local contractors are available,and they would be used in accordance with Local Competitive Bidding (LCB)procedures acceptable to the Bank.
3.9 Capital Assets (Equipment and Furniture) (US$5.4 million) financedunder the loan would be procured following International Competitive Bidding(ICB) procedures, while expenditures below US$100,000 would be subject toprudent shopping procedures acceptable to the Bank.
3.10 Review of Procurement. Procurement of capital works (civil works)and capital assets (equipment) above US$200,000 equivalent and all technicalassistance contracts would be subject to prior review by the Bank, exceptthose financed by the Government of Australia.
D. Disbursements
3.11 Disbursement of the loan would be made for:
(a) 100Z of expenditure for technical assistance and contract staffsalaries;
(b) 10O of expenditures incurred on or before December 31, 1989 and 902thereafter for capital works (civil works);
(c) 1002 of foreign expenditures, 100Z of local expenditures ex-factorycost and 852 of local expenditures for other items procured locallyfor capital assets (equipment and furniture); and
(d) 802 in 1989; 702 in 1990; 602 in 1991; 502 in 1992; and 402 in 1993of incremental salaries of local staff.
Disbursements for capital works (civil works) and capital assets (equipmentand furniture) costing less than US$200,000 equivalent and all incrementalstaff salaries would be made against statements of expenditure (SOEs).Documentation supporting these SOEs would be retained by DLPP and madeavailable for review by Bank missions. All other expenditures would be fullydocumented. DLPP would be responsible for preparing reimbursementapplications which, following review and processing by DFP would be submittedto the Bank for reimbursement. To facilitate disbursement administration,withdrawal applications would be aggregated to the extent possible, in amountsof US$50,000 or more prior to submission to the Bank. To allow sufficienttime for submission of final withdrawal applications, following the scheduledcompletion date of December 31, 1993, the closing date would be June 30, 1994.The profile of technical assistance (institutional development) projects inthe Asia Region shows a seven year disbursement period and the profile of thePapua New Guinea projects, eight years. The recently completed SouthernHighlands Project (Cr.841-PNG) disbursed in seven years. However, given theJanuary 1, 1989 start-up of the Land Mobilization Program and therefore,selected project components, combined with the high level of financing of
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capital works (civil works), capital assets (equipment and furniture),technical assistance and staff salaries, disbursements under the project areexpected to be completed in five years. An estimated Schedule of Disbursementis given in Annex 7.
E. Special Account
3.12 In order to expedite disbursements, Government will establish aSpecial Account at the Bank of Papua New Guinea. The Account would be main-tained in Kina with an authorized allocation of Kina equivalent of US$1.3million, representing an estimated average of four months expenditures andwould cover all categories financed by the Bank. Except for largeexpenditures that would greatly deplete the Special Account, all projectexpenditures would be channelled through this Account and withdrawn inproportion to the percentage being financed.
F. Accounts and Audits
3.13 Project expenditures would be processed in accordance with regularGovernment accounting procedures which are sound and consistently applied.Implementing agency would keep separate project accounts, which would beconsolidated on a quarterly basis by DLPP. Assurances were obtained that:(a) the implementing agency would prepare and maintain identifiable projectaccounts within their own budgeting system, and prepare and maintainconsolidated project accounts and a separate asset register for the project;(b) project accounts including those for the Special Account would be auditedannually by an independent auditor satisfactory to the Bank; (c) copies ofunaudited annual project accounts would be sent for review to the Bank nolater than six months after the end of each fiscal year, and copies of theaudit report not later than nine months after the end of each fiscal year; andtd) the auditor's report would include, inter alia, a statement that fundsdisbursed against SOEs were used for the purpose for which they were provided(para. 6.2(m)).
IV. PROJECT MANAGEMENT AND IMPLEMENTATION
A. Project Management
4.1 The management of the Land Mobilization Program and therefore, theproject would be the responsibility of the Department of Lands and PhysicalPlanning (DLPP) and its Secretary. The program/project design, especiallymanagement and implementation, fits within the reorganized Department(para. 1.20).
4.2 A revitalized Program Management Committee (PMC) would be the primaryvehicle for overall program/project coordination, including oversight andsupervision of the activities of each DLPP division and work unit. Chaired bythe Secretary of DLPP, its members would include the DLPP Deputy Secretaries,all divisional heads and the regional managers. Representatives from DPM, DFPand PMU would be invited to attend PMC meetings on an ad hoc basis when theneed for coordination with these Departments is identified. The role of the
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PHC will include: (a) consideration of policy submissions for forwarding tothe National Land Management Conmittee (NLMC) (para. 4.8); (b) strategicplanning for the Department; (c) coordination of the preparation of annualwork programs and priorities; (d) allocation of resources within the Depart-ment; and (e) the monitoring and review of the program/project'simplementation.
4.3 The Policy and Programming Division and its branches and sectionswould have a key role for program/project coordination and monitoring:
(a) the Program Management Branch, responsible for coordination ofplanning, budgeting, and monitoring the LMP. It would also overseethe construction of new regional and provincial offices, staffhousing, and the recruitment and administration of technicalassistance;
(b) the Policy and Research Branch, responsible for conducting researchand developing the policies required for the efficient management ofthe land sector. It would also be responsible for the amendment ofthe various procedures utilized within the Department and thedevelopment of appropriate manuals;
(c) the Provincial Services Branch, responsible for technical support tothe provinces. This would comprise coordination of the mobilizationof customary land, and the decentralization of alienated landadministration to the provinces;
(d) the Publicity Branch, responsible for the establishment of a publi-city program to support implementation of the LMP;
(e) the Finance Branch, responsible for administering the Department'sfinances; and
(f) the Land Information Unit, responsible for the implementation andongoing maintenance and development of PNGLIS.
4.4 The newly created Personnel Services Division would be responsiblefor all personnel administration, recruitment, staff development and stafftraining requirements of the department (paras. 4.21 and 4.25).
4.5 The National Mapping Bureau would operate as a separate divisionwithin the Department and continue to expand its present functions in produc-tion of topographic and cadastral maps, and maintaining the geodetic controlnetwork (para. 1.17).
4.6 Program Budgeting/Management. The introduction of program budgeting/management to DLPP in 1989 will result in a change from budgeting andaccounting on a functional basis to one based upon the achievement of plannedphysical targets. Inherent in the implementation of program budgeting andmanagement is the concept of accountability for physical achievements andrevenue/expenditure performance. The implementation of program management inDLPP has the following features:
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(a) a Departmental reorganization supporting program implementation andaccountability;
(b) an hierarchical set of clearly defined Departmental objectives,together with specification of achievement indicators and key assump-tions. These are set out in a logical framework format in Annex 5;
tc) under the new DLPP structure, each of its 15 work u-nits is respon-sible for a particular component or subcomponent of the project/program. The LMP program design was developed as an aggregate of thework programs of these 15 work units. An "input/output* worksheetwas developed for each of these work units (see example in Annex 5,Tables 1, 2, 3 and Project File, Document 1.1), specifying resourcerequirements (inputs) and performance indicators (outputs). Theseworksheets clearly outline the role of each work unit in contributingto overall LMP objectives, and the performance outputs for which theywill be held responsible. They would be updated annually as a partof the budget preparation process;
(d) The Department of Finance and Planning, the Department of the PrimeMinister, and the Department of Personnel Management are responsiblefor ensuring that all necessary resources are made available to DLPPunder the terms of the Memorandum of Understanding;
se) the annual DLPP budget allocation will be provided against a revisedchart of accounts, corresponding to the components and subcomponentsof the program; and
(f) the annual budget will be provided entirely as a Public InvestmentProgram allocation, to enable more flexible management of budgetaryresources by the department.
4.7 The Role of PNGLIS. The successful introduction and implementationof the PNGLIS system is a key element in the overall program/project manage-ment strategy. In addition to the more obvious benefits of rapid and accuratedata retrieval, the innovative transaction processing features of the PNGLISsystem will provide the possibility of enhancing and monitoring the perfor-mance of all staff involved in the complex land administration processes.Extension of the PNGLIS system to the provinces is the only way to allow thegradual decentralization of land administration functions to provincialgovernments.
4.8 A National Land Management Committee (NMLC) would be established byDecember 31, 1989 to resolve policy and programming matters involving inter-agency coordination at senior management levels. It would advise the ResourceManagement Committee, which in turn reports to the National ExecutiveCommittee (cabinet) (Chart 1). Its responsibilities would include:(a) formulation of Government's land use policy; (b) monitoring theimplementation of Government's priorities; (c) determination of nationalmapping policy; (d) facilitation of resource allocation for planning landdevelopment activities; (e) assessment of environmental and conservationimplications of investment proposals; and (f) provision of a collaborative andconsultative mechanism with all departments concerned with land development.
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4.9 NLMC would comprise senior representatives of the Departments ofAgriculture and Livestock, Forests, Transport, Environment and Conservation,Minerals and Energy, Works, Provincial Affairs, and Finance and Planning. Itwould coopt, whenever necessary, representatives from individual provinces,the private sector (including surveyors and lawyers), and public utilities.Chaired by the Secretary of DLPP, it would meet twice a year to coincide withthe budget preparation process. Technical work requirements relating tomapping (and surveying) would be delegated to a Happing Advisory Subcommittee(para. 2.27).
4.10 DLPP's Policy and Research Branch of the Policy and ProgrammingDivision would act as secretariat in minute taking, word processing, agendapreparation, meeting arrangements, and multi-sector activity coordination forthe NLMC.
4.11 Other Central Departments. The Prime Minister's Department,Department of Finance and Planning, and Department of Personnel Managementwere actively involved in the design and preparation of LMP. Thiscoordination took place informally at the working level through DLPP's activeliaison efforts. These were assisted greatly by the Program Management Unit(PMU) of the Prime Minister's Department. This assistance in coordinationwould continue during implementation of the LMP. In addition, quarterly LMPreview meetings would be conducted, chaired by the Department of Finance andPlanning and attended by DLPP, PHU, and Department of Personnel Management.In addition to reviewing progress in implementation of the LMP, the reviewmeetings would facilitate and coordinate central department support for theLMP, and monitor each Department's compliance with the Memorandum ofUnderstanding.
4.12 Memorandum of Understanding (MOU). DLPP has undertaken an importantinitiative to manage its institutional environment by signing a Memorandum ofUnderstanding between DLPP and the other central Departments: PrimeMinister's, Finance and Planning, and Personnel Management. The MOU sets outagreements reached on both policy and procedural matters that will vitallyeffect DLPPs ability to implement the LMP. While the MOU is not legallybinding, it establishes clear agreements and expectations of each departmentwith respect to funding, personnel recruitment and management, and programmonitoring procedures.
4.13 Department of Justice (DoJ). The Department of Justice would not beinvolved directly in the project, although it is expected that DoJ willconcurrently initiate a training program for land magistrates, and assist insome of the proposed legislative reform. The Justice Department is respon-sible for administration of the Land Titles Commission and the National LandCommission. The Land Titles Commission is primarily involved in consideringapplications for tenure conversion of customary land, usually from customarystatus to alienated land with title. The National Land Commission isconcerned with clarifying government's title to state lands and resolvingcompensation claims. DLPP undertakes any necessary cadastral surveying andupdates its land records of parcels affected by the Commissions' decisions.The Justice Department also has two lawyers who provide legal advise to DLPP.The National and Supreme Court act as appellate tribunals for decisions oflower courts involving alienated land issues. Local and District Land Courts
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under the Justice Department handle alienated and customary land disputes.Magistrates in the provinces act as Land Court Magistrates. The University ofPapua New Guinea (UPNG) conducts a training program for magistrates.
4.14 The dispute resolution process in an integral part of the landadministration process, but shortcomings in the current settlement procedureshave led to a backlog of unresolved disputes. These problems are likely to beexacerbated in the short term by the raising of currently dormant issues byapplications for customary land registration. For many years, there have beencalls for the appointment of a special cadre of Land Magistrates possessingupgraded training in land-related subjects. In addition, consideration hasbeen given in recent times to rationalization of the various bodies respon-sible for determining land disputes. A consultant lawyer would review theexisting mechanisms and organizations responsible for the resolution of landdisputes and make recommendations on their rationalization, reinforcement andtraining requirements (Subcomponent 2.1, para. 2.16).
4.15 Provincial Governments. Five provincial governments are expected toparticipate in the program of decentralization of alienated land administra-tion during the project. Each of these participating provincial governmentswould create a consolidated Lands Division under a Senior Provincial LandsOfficer, with responsibility for land administration (land allocation,valuation, acquisition, and revenue generation); surveys, titling, physicalplanning; and (where appropriate) customary land mobilization (Chart 7). Theinternal structure and staffing of these provincial lands offices would varyfrom province to province. In particular, the size and role of the customaryland mobilization section would vary according to the needs and priorities ofindividual provinces.
4.16 Under the LMP, DLPP will encourage provinces to set up LandManagement Committees (LMC) to establish provincial government policies andcross-sectoral links for the mobilization of both alienated and customaryland. The membership of these committees will include: Provincial Secretary(Chairman); Provincial Planner; District Officer (Lands); Division of PrimaryIndustry; Division of Forests; Division of Transport; DLPP Provincial Manager;DLPP Physical Planner; representatives of customary landowners; and otherrepresentatives of the private sector as required. It will be the role ofeach LMC to establish land mobilization policies and priorities. These willbe accommodated initially within DLPP's work program in the province. Once aprovince has an established land administration capacity, the LMC will deter-mine the work program of the province's Lands Division. The LMC will alsoprovide the linkage between the provincial District Officer (Lands) staff andnational DLPP staff in the province to ensure a coordination of their efforts.
4.17 Private Sector. The private sector would have an important role inthe project as participant and beneficiary. Professionals involved in landmatters include private surveyors, lawyers, commercial bankers, and individuallandholders. The role of private surveyors in undertaking cadastral surveys,currently undertaken by DLPP staff, would be reviewed, together with DLPP'sfee structure. There is also scope for the use of private valuers. The studycomparing the present leasehold system requiring a multitude of Governmentapprovals with other systems of land tenure in which market forces are allowed
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to play a larger role (para. 2.16, Annex 8, position 2.1.7) would also analyzethe incentives for the private investor.
B. Management of Technical Assistance
4.18 A comprehensive series of technical assistance inputs (520 staff-months of consultancies costing US$5.5 million) has been identified for theproject (Annex 8; Terms of Reference in Project File, Document 1.2). Theserange from short-term special studies, to the recruitment of long-termconsultants to assist in the institutional strengthening activities. Themanagement burden would be distributed as follows. Of the total technicalassistance of 520 staff-months, 241, with relatively less direct linkages toother project components, would be administered by the AustralianInternational Development Assistance Bureau (AIDAB). This includes one teamtotalling 66 staff-months for land data verification of which is already inplace; and 166 staff-months for remote sensing and geodetic networkadjustments. The remaining 279 staff-months would be financed by the Bank andadministered by DLPP. Of this, 148 would be four long-term consultants; 104staff-months for 12 different consultants or studies related to DLPP'sdifferent work units; and 12 for contractual services. DLPP would be assistedin administering the 279 staff-months of consultancies by a local accounting/management firm which would assist in recruitment and administration ofconsultants (15 staff-months, Annex 8, position 1.1.1.). Technicalsupervision of consultants thus recruited would remain the responsibility ofthe relevant work units within DLPP. Assurances were obtained that Governmentwould enter into consultant contracts prior to loan effectiveness (para.6.2(b)) for the followings (a) Head Program Management Branch (para. 2.10(a);Annex 8, position 1.1.2); (b) Technical Assistance Administration (para.2.10(f); Annex 8, position 1.1.1); (c) Organization and Management Specialist(para. 2.15; Annex 8, position 2.1.8); and (d) Staff Development and TrainingSpecialist (para. 2.17b; Annex 8, position 2.2.1).
C. Monitoring
4.19 As a part of the overall program budgeting/management approach, abasic management information system has been designed. This consists of anhierarchical set of indicators, ranging from performance indicators for eachDLPP work unit to achievement indicators for each component and LMP objective(Annex 5 and Project File Document 1.1). Monitoring of the program/projectwill take place at a number of levelst
(a) work unit managers will monitor work unit inputs and outputs as a dayto day management task, and report monthly to the Policy andProgramming Division in the form of a summary work unit report;
(b) the Program Management Branch of the Policy and Programming andPolicy Division will collate and summarize the work unit reports fora quarterly internal review by the PMC, highlighting deviations fromexpected outcomes that should be responded to by the PMC;
(c) the Program Management Branch will also be responsible for compilingthe results of PMC's internal review in the form of a Quarterly
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Secretary's Report. This report will form the basis of an externalquarterly review with DFP, DPM, and the Prime Minister's department;and
(d) joint Government/Bank implementation reviews will be conducted atapproximately six monthly intervals, with one major annual reviewscheduled for March/April of each year, to coincide with the forma-tive stage of the annual budgetary process. The Government ofAustralia would participate in the reviews. The outputs and inputsof each work unit during the past year would be reviewed, the workprogram for the current year would be adjusted to the budgetallocations and the work program and staff and budget requirementswould be formulated for the following year. The input/outputworksheets prepared for each DLPP work unit (Annex 5, Tables 1, 2, 3)would facilitate this process and function in aggregate as a*rolling" five-year plan for DLPP, allowing flexibility for LMP re-design over time as circumstances dictate. Assurances were obtainedthat a joint annual review would be in conducted by April 30 in eachyear and that Government would carry out such changes to the Programas agreed with the Bank (para. 6.2(n)).
D. Evaluation
4.20 Within six months of project completion, DLPP would prepare a finalevaluation report. This report would include an evaluation of the institu-tional, financial, and socio-economic impact of the project and would be usedfor the Project Completion Report (PCR)
E. Staffing Requirements
4.21 As of April 1, 1988, the staff on strength in DLPP totalled 424, ofwhom 372 were graduate staff. Under the LMP reorganization, the staff onstrength in the Department would be increased by 342 over five years, i.e. by146 staff to a total of 570. This staffing level would still be below thelevel of 632 established positions. The seniority and calibre of the staffwould also be increased, so that in five years, 432 of total staff would begraduates. The incremental staff requirements would be distributed amongstLMP components as follows:
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Component Incremental Staff over 5 yearsNational Contract Total
1. Program Management 25 0 252. General Institution Building 12 6 183. Mobilizing Alienated Land 79 2 814. Mobilizing Customary Land 2 0 25. Decentralization Alienated Land
Administration 3 0 36. Land and Resource Information 10 7 17
Total 131 15 146
Detailed projections by year for the whole Department are presented inAnnex 1.
4.22 Thirty nine graduate position would be filled in the first year ofthe program. Of these, the key positions to be filled are as follows:
Component Sub-Component Key Position
1. Program Management 1.1 Management 1.1.1 Deputy Secretary.Technical Services
1.1.2 Asst. Secretary,ProgrammeManagement
2. General Institution 2.1 Policy and Institutional 2.1 Head, Policy andBuilding Infrastructure Research Branch
3. Mobilizing Alienated 3.1 Southern Region 3.1 Regional ManagerLand (Southern)
3.2 Northern Region 3.2 Regional Manager(Northern)
3.3 Island Region 3.3 Regional Manager(Island)
3.4 Highlands Region 3.4 Regional Manager(Highlands)
4.23 Staff requirement projections for the LMP were adjusted to match asfar as possible realistic projections of the likely supply of senior nationalor contract (non-citizen) staff in each professional discipline. Annex 1presents the detailed staff demand and supply projections. These were arrivedat as follows: DLPP incremental staff requirements over five years were firstestimated; allowances were made for "wastage", i.e. recruitment to replacestaff lost through attrition; senior staff requirements for expanded provin-cial offices as a result of decentralization were then added to arrive at theestimated total demand for senior staff, by discipline. The likely supply ofnational graduates and diplomats from various tertiary training institutionswas then estimated, together with the likely proportion of fresh graduatesfrom each stream that could be recruited by DLPP. The likely surplus or
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deficit over 5 years for each professional stream (assuming 5 provinces takeover decentralized land functions in 5 years, and 2Z wastage of DLPP staff) isas follows:
Profession Total Demand Likely Supply Likely Surplus/Deficit
Physical Planners 12 6 -6Surveyors 44 25 -19Valuers and Land
4.24 Under the prevailing assumptions, the likely supply and demand ofsenior staff over five years in most of the relevant professions is inbalance. The exception is the surveying profession, in which projected demandexceeds supply by a total of 19 graduate surveyors. This is not expected tocreate a bottleneck, however, because the Surveyor-General has identified apool of 20-25 graduate surveyors in the country available for recruitment toDLPP in 1989. Thus, the overall projected LMP requirements for senior staffrecruitments are likely to be met from future tertiary graduates and/orexisting staff on the labour market.
F. Staff Development and Training
4.25 DLPP's staff development and training functions would be signifi-cantly strengthened under the LMP, in order to enhance DLPP's capacity todeliver lands services to its clients (Annex 1). Under the reorganization, anew Personnel Services Division has been created (para 4.4), and the staffassigned to these functions would be increased from three to eight. The StaffDevelopment Branch would undertake staff recruitment; establish and maintain astaff evaluation and development system; develop career path structures forthe various professional and administrative streams in the department; andassist managers of other DLPP work units to take greater responsibility forthe performance, development and counselling of their subordinate staff.
4.26 The Staff Training Branch would be responsible for the development ofan in-house training capacity, in addition to coordinating staff attendancesat external courses. One senior officer would take responsibility for thedesign and delivery of management training; one senior officer would beresponsible for coordinating attendance at external technical courses; and afurther two senior officers will be responsible for conducting training inadministrative procedures for both DLPP and provincial lands staff. A consul-tant staff development and training specialist would engaged for a total of 40months to assist the Personnel Services Division develop its capacity in theseareas (Annex 8 position 2.2.1).
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4.27 The overall program costs for the Personnel Services Division areestimated at K 1.7 million (Annex 5, Table 1). In addition, the costs ofoverseas training courses which would be met separately by bilateral donors ona case-by-case basis, is estimated to be K 760,000 over five years. Theincremental costs of staff development and training initiatives under the LMPare in broad terms equivalent to the Personnel Services Division's incrementalcosts. Thus, project staff development and training costs under LMP would beK 1.2 million (Annex 5 Table 3). By end 1991, the Division is expected toprovide modular in-house training in management and administration procedurestotalling 300 attendances per year, with a typical attendance being for athree-day course, and with many staff attending more than one course per year(Annex 5, Table 1). The Transitional Training Unit of the PMH will assist inthe design and delivery of five management training modules, training DLPPrecruitment staff and operations division managers as priority target groups.Over the five year program some 90 DLPP staff would benefit from overseascourses or work attachments, averaging six months in duration.
V. BENEFITS AND RISKS
A. Benefits and Beneficiaries
5.1 The project would help to provide the infrastructure, policies andlegal framework essential for the orderly management and use of landresources. The benefits are difficult to quantify with an acceptable marginof error, and, therefore, no economic rate of return has been calculated. Theproject would revitalize DLPP and would enable it through reorganization,staff training and introduction of rationalized procedures to service theland-related sectors of the economy more efficiently. Speedier allocation andtransfer of alienated land would encourage investors. Stocktaking of about300,000 ha of alienated land that has not been leased would lead to better useof some of this land. If about 50,000 ha of this land could be brought byable developers into cash crop production, for example, it could yield annualexport earnings from cocoa or oil palm of about US$40 million. The registra-tion of all leasehold titles would lead to earlier availability of mortgageloans for development. The customary land sector, from which about 75Z of thevalue of rural production comes, has hitherto developed without makingsubstantial claims on land administration services. However, the presentegalitarian system of land allocation by clans is coming under increasingpressure from population growth and the cash economy with related technologiesweakening the security of tenure. Such security is required to encourageinvestments in new crops and technologies and in measures to maintain soilfertility. There is no proper intervention mechanism for customary land mobi-lization. The project provides for the development and monitoring of legaland administrative systems under existing legislation (Lease-Leaseback andTenure Conversion) and under the new East Sepik Land Registration legislationand the eventual introduction of similar legislation in other provinces. Suchregistration of customary land already facilitates urban development byenabling land groups to lease land for housing development (Vewak). Further-more, the coordination procedures established under the project would improveland use planning and reduce duplication of efforts by different agencies.The gradual decentralization of land administration would also strengthen theprovincial administrations.
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B. Impact on Government Expenditure and Revenue
5.2 With its emphasis on cost-effectiveness, the project should promote ahigher level of governihent services per unit cost. The monitoring would bebased on specific indicators of changes in efficiency (Annex 5, Table 1). Themanagement information system (MIS) to be developed by the MIS Specialist(Annex 8, position 1.1.3) should assist DLPP to manage its expenditures andbudget more efficiently. Overall, the project will result in some increase inrecurrent government spending. However, the productivity of theseexpenditures would be substantially increased.
5.3 DLPP's major revenue source is land lease rentals (84.82 of totalland revenues). Other significant sources are sale of allotments (102),sundry receipts (1.72), license fees and royalty payments (1.22), valuationfees (12) and survey fees (0.62). Surplus earnings from sale of maps,surveyor's registration, valuers registration and other fees each contribute0.22 on less of revenues. A detailed DLPP revenue forecast for 1989-1993 isin Annex 9.
5.4 The Government currently collects land revenues through cash officesthroughout the provinces which forward the funds to the DFP. However, inade-quate record keeping and failure in crediting funds to DLPP revenue accountsdoes not allow clear identification of defaulters. A study under the projectwould identify an improved system (para. 2.16(c)).
5.5 The land lease rent due roughly equals DLPP's 1988 budget (K 9-10million). Rent collection, however, is only 732 of rents due. About half theleases are in arrears and cumulative rent arrears seem to remain at a level ofabout K 9 million. The rent review under the project might result in thelowering of rents on some types of leases but the review of the rent collec-tion system is expected to more than compensate for this.
5.6 It can be estimated that about half of DLPP's budget is spent inactivities which are not generating land lease rent (mapping, administeringcustomary land, land acquisition for public purposes). This means that DLPPspends about 502 of the land rent it receives on administering alienated land.This is not cost-effective, even after taking into account the fact that rentsare sometimes set to achieve the highest economic or social but not financialbenefits. Therefore, the project includes procedural amendments and a studyon alternative systems of land allocation and transfer relying to a greaterextent on market forces with much reduced Government intervention.
C. Environmental Impact
5.7 The Government has already adopted an excellent policy and regulatoryframework for the evaluation and assessment of the environmental impact ofinvestment proposals. This assessment is undertaken by the Department ofEnvironment and Conservation (DEC). No investment proposals can beimplemented without the sanction of this Department. The project wouldstrengthen the selection and implementation of environmentally beneficial landuse proposals through the participation by the Department in the National LandManagement Committee (NLMC) which would be constituted under the project. The
- 3s -
responsibilities of the NLHC include land use policy formulation and theassessment of the environmental and conservation implications of investmentproposals (paras. 4.8, 4.9). In addition, the development of the Land UseInformation System (PNGLIS) under the project and its linkage with theResource Information System (PNGRIS) would provide technically sound databases to influence both the formulation of policy and direct investment alongenvironmentally sound programs.
D. Impact on Women and Tribal Groups
5.8 Women play an important role in agriculture as subsistence farmersand their rights to use land are, therefore, essential to family health andnutrition. They farm mainly on customary lands. With the exception of a fewclans which are matrilineal, women do not generally play an active role indecision-making within the clans. As legal and procedural changes are under-taken to facilitate the mobilization of customary land, their impact onwomen's land use rights and ensuring that existing rights are not underminedwould be analyzed during reviews of draft legislation. However, these changesare likely to affect not so much the production of foodcrops, which is tradi-tionally women's work as the production of cashcrops in which men are morepredominant.
5.9 The vast majority of the population of Papua New Guinea derive theiraccess to and rights in land through their affiliation to clans and lessergroups (kinship and family). There are an estimated 700 clans in PNG whichvary both in their control of land use and in their economic and financialsophistication. With the increasing penetration of cash crops and involvementin market transactions, and the consequent rise in land values, group controlsover land transactions and use are weakening. Informal adaptations tochanging situations are tending to reduce individual access to land and allowfor greater inequalities in land holding. The security of tenure formerlyprovided under the customary system is being jeopardized by these more recentdevelopments. In the result, formal recognition of land rights and thecontrol of transactions is necessary to provide greater security of tenure andto avoid the potential for land accumulation by some individuals at theexpense of other group members. The project aims to provide this security andto foster development. The project aims to achieve these goals through theformulation of a national framework law relating to customary lands. Theprovinces would then be free to legislate subsidiary legislative frameworkstaking into account the systems of land tenure and the levels of developmentwithin each province. In this process spontaneous, but controlled, develop-ment would be fostered and the clans and other groups would be free to choosethe method by which the rights to land are recognized (whether it be, for thetime being, through the recognition of clan or group ownership and distribu-tion of subsidiary rights, or individual ownership). There would, in conse-quence, be a legislative recognition of the gradual evolution of rights inland under a framework which reduces the potential for uncontrolled transac-tions and permits each group to use land in accordance with its perceivedneeds and economic opportunities.
- 39 -
E. Risks
5.10 The main risks include ineffective management of the LandMobilization Program, inability to coordinate and absorb 520 staff-months oftechnical assistance, quality of staff that can be retained or recruited intokey positions, inadequate budget allocations, unvillingness or inability ofnational government agencies and provinces to cooperate and use coordinatingmechanisms, and the failure of parliament to approve amendments to land laws.To minimize these risks, the project design includes: a management componentand technical assistance for management and information systems; a Memorandumof Understanding on project implementation between the Department and otherkey departments and joint (Government and Bank) annual reviews of the programto facilitate effective management and implementation; provision ofconsultancy services to administer the technical assistance and theresponsibility for managing the work and absorbing the output of technicalassistance assigned to individual work-units of the Department; staff trainingand development activities; and establishes the National Land ManagementCommittee. The advanced state of project preparation and the Governmentdecision to begin implementation of the Land Mobilization Program on January1, 1989 demonstrates Government's commitment to the project.
VI. AGREEMENTS REACHED AND RECOMMENDATION
6.1 Assurances were obtained from the Government that:
(a) the reorganization of DLPP is completed by December 31, 1989(pare. 2.10);
(b) the National Land Management Committee and the Mapping AdvisoryCommittee are established by December 31, 1989 (para. 2.10 and 2.27);
(c) regularlf scheduled meetings of the Program Management Committee arereinstituted by December 31, 1989 according to agreed terms ofreference (para. 2.10);
(d) a study on nature and extent of incomplete land administrationtransactions would be carried out by December 31, 1990 and DLPP wouldthereafter, promptly prepare and carry out an action program (para.2.11);
(e) the role of private surveyors in undertaking surveys required forland allocation is reviewed, including review of DLPP survey fees byDecember 31, 1990 (para. 2.12);
(f) the reviews of the land lease rent determination policies of DLPP inrelation to leasehold properties would be completed by December 31,1989 and a system, taking into account the comments of the Bank onthe review, be established by January 1, 1990; and the review of theexisting rent collection systems is completed by June 30, 1990 and asystem, taking into account the comment of the Bank on the review, isestablished by December 31, 1991 (para. 2.16);
- 40 -
(g) legislative and procedural amendments are drafted to supportimprovements in administration procedures for alienated land by June30, 1990 (para. 2.16);
(h) study of alternative land allocation and transfer systems foralienated land, allowing market forces to determine land allocation,transfers and values, is completed by December 31, 1992 (para. 2.16);
(i) appoint a consultant to review the development of a nationalframework legislation for registration of customary land not laterthan December 31, 1990 (para. 2.16);
(j) review of the existing land dispute settlement mechanisms and inves-tigation of options for resolution of existing difficulties iscompleted by December 31, 1990, and furnish to the Bank an actionplan by December 31, 1991 and thereafter carry out such action plan,taking into account the comments of the Bank (para. 2.16);
(k) amendment to the Survey Coordination Act is drafted by December 31,1990 requiring deposition of all maps and aerial photography with NMB(para. 2.16);
(1) key DLPF positions are filled by December 31, 1989 (para. 2.17,4.22);
(m) audit of project accounts and Specdl Account (para. 3.13); and
(n) annual reviews (Government/Bank) re conducted by April 30 of eachyear and Government to carry out such changes to the Program asagreed with the Bank (para. 4.19).
6.2 As conditions of loan effectiveness Government would:
(a) fullfil the conditions of effectiveness of the Australian GrantAgreement (para. 3.4); and
(b) enter into contracts with key consultants (para. 4.18).
6.3 With the above agreements and assurances, the project would besuitable for a Bank loan of US$19.6 million with 20 year maturity at thestandard variable rate, including a grace period of five years. The Borrowerwould be the Independent State of Papua New Guinea.
- 41 - AM= 1
Page 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Staff Development and TraininR
A. Training Needs
1. A major constraint to the effective operation of DLPP is the lack oftraining of its staff in both technical work skills and managerial skills.The Department currently suffers from a low level of productivity and staffmorale, reflecting lack of knowledge and skills, and perceived promotionalconstraints within the Department. Lack of management and supervisory skillsis a recurring complaint throughout the provincial offices as well asheadquarters, and is a major constraint to Departmental efficiency. Althoughland administration is a complex and legal field, it has low status as acareer and most land administration staff have had limited pre-service and on-the-job training.
2. DLPP has prepared a Staff Development and Training Issue Paper(Project File, Document No: 3.4), which discusses in detail weaknesses inDLPPs staff, administrative, managerial and technical skills. In summary, thekey weaknesses observed are as follows:
Managerial
- shortages of staff trained and experienced in complex legalprocedures;
- inadequate supervision and management of subordinate staff;
- inadequate delegation of functions to subordinate staff;
- lack of accountability for attendance and performance;
- weak staff recruitment capabilities;
- poor programming and time management;
- poor program coordination and monitoring; and
- poor budget preparation and financial control.
Technical
- inadequate valuation techniques;
- shortage of registered surveyors;
- limited mathematics skills for draftsmen;
- 42 -ANNEX 1Page 2
_ weak computer technology skills;
- inadequate rural planning skills for physical planners.
Administrative
- poor records management
- inadequate job rotation
- inadequate basic office procedures
- limited English comprehension
- inadequate filing skills
- poor report writing skills
- inadequate grasp of basic land administration procedures.
B. Organi-%ation and Staffing
3. Under the Land Mobilization Program, personnel administration, andstaff development and training will be the responsibility of a new division--the Personnel Services Division. This division will be headed by anAssistant Secretary who will be responsible to the Deputy Secretary--TechnicalServices for its operation.
4. The Personnel Services Division will consist of three branches (Chart5):
(a) Personnel Branch headed by the Administrative Officer. This branchwill be responsible for day to day administration of the existingpersonnel functions within the Department, including theadministration of the payroll. This unit will also be responsiblefor maintaining the establishment and staffing records of theDepartment and liaising with the Administration Clerks established ineach of the regions to process recurrent personnel administrationmatters;
(b) Staff Development Branch headed by the Principal Staff DevelopmentOfficer. The Staff Development Branch will be responsible for therecruitment of staff to the Department, and for establishing andmaintaining a staff evaluation and development system fordepartmental staff. The branch will also be responsible for thedevelopment of career path structures for the various professionaland administrative streams within the Department. It will supportthe introduction of program management techniques by assistingmanagers of the various organizational units within the Department totake a greater responsibility for the performance, development andcounselling of their subordinate staff. This role will be supportedby the management training to be provided by the Staff TrainingBranch; and
- 43 -
ANNEX 1Page 3
(c) Staff Training Branch headed by the Principal Training Officer. Thisbranch will be responsible for the development of an in-housetraining capacity for the Department, in addition to the coordinationof staff attendance at external courses both withn PNG and overseas.
5. The existing staff complement of 3 responsible for training and staffdevelopment will be increased to 8. Further, the levels of the positionssignificantly elevated to attract the calibre of personnel necessary todeliver the quality of training and staff development necessary for theDepartment. The division will thus be enabled to give increased emphasis toin-house management and land administration training, on-the-job andcounterpart training, recruitment, manpower planning and career path planning.
6. There are two key positions in the new Personnel Services Divisionstructure for which technical assistance (as Contract Officers) will probablybe necessary and for which it has been budgeteds the Principal TrainingOfficer and the Management Trainer. Other positions will be staffed bynationals, but it is anticipated that they will require technical assistancein order to perform at the level required. For the Land Administrationtrainers, the technical assistance will be particularly important in thedevelopment of training manuals.
7. The form of technical assistance proposed is a Staff Development andTraining Specialist for a total of 40 man-months: 30 of these would be duringthe first 3 years of the program, and 10 as short-term consultation over theremaining years (Annex 8, position 2.2.1) The terms of reference for thetechnical assistance appear in Project File Document 1.2.
C. Staff Recruitment and Development Initiatives
8. Recruitment of sufficiently skilled staff in a timely and efficientmanner and their retention within the Department, is of central importance tothe implementation of the Land Mobilization Program. Recruitment of anadditional 146 staff over the five years of the program is required to bringthe Department up to strength (Annex 1 Table C).
9. In an effort to overcome some of the difficulties currentlyexperienced in the recruitment of staff, DLPP has agreed upon a Memorandum ofUnderstanding with the central agencies (consisting of the Departments ofFinance and Planning, Personnel Management and the Department of the PrimeMinister). The MOU provides for certain delegations to DLPP in relation tostaff recruitment and provides a framework for coordination of DLPP andcentral agency activities.
10. Within DLPP there has been little or no career path planning, jobrotation or equipping of professionals to move into management positions. Oneof the duties of the Principal Staff Development and Training Specialist willbe to develop a series of career path models for each career stream in thedepartment. Each model would outline the recruitment entry point, salarylevels, number of years experience and the appropriateinecessary trainingrequired for each incremental level. The same officer would introduce and
-44 - MONIX 1Page 4
monitor a system of staff performance appraisals. He/she would advisesupervisors on the use of the system, and appropriate responses to emergingproblems.
D. Training Initiatives
11. Training initiatives under the LMP have been categorized into threestreams, with senior staff trainers allocated to each streams
(a) Management Training. The Department is currently suffering from alack of trained managers. Promotion within the Department sinceindependence has been rapid and has not been matched with training ofthe staff to equip them in their new positions. Further underliningthe necessity of this training is the introduction of programbudgeting/management, which seeks to strengthen the accountability ofmanagers for the output of their units. These managers must beequipped to effectively manage their staff. The advantages ofsending staff on management courses are seriously eroded by theabsence of the officer from his/her duties and the use ofinappropriate case studies from other Departments or overseasorganizations. In order to avoid these disadvantages it is proposedto provide on-the-job type training at executive level. Modulesdeveloped for senior managers would be of two types:
(i) functional courses: intensive short residential courses in keymanagement areas tailored to meet individual needs in thedepartments; where appropriate, external agencies such as theAdministrative College would be contracted to design and deliversuch modules. The Transitional Training Unit of PMU willorganize five such modules during 1989 as an interim measure;and
(ii) contextual seminars/workshps: short consultative workshopsand/or field tours for senior managers, focussing on majorissues and problems facing the department.
(b) Technical Training. The provision of in-house detailed technicaltraining for the discipline of surveying, valuation and physicalplanning by the department is regarded as being non-feasible. TheDepartment has been well served in the past by external technicalcourses both in country and overseas and by overseas workattachments. These will be continued, but an officer within theBranch will be responsible for the coordination of this trainingthrough liaison with the Surveyor General, Valuer General and ChiefPhysical Planner, and the Regional Managers of the OperationsDivision. Current overseas technical training arrangements forsurveyors, valuers and physical planning staff are adequate, and willbe continued with donor assistance. Training for land administratorswill be extended from the current diploma or degree in landmanagement at the University of Technology (UNITECH), Lae to includeadvanced management techniques in land registration andadministration at overseas institutions. Over 5 years, approximately
- 45 - ANEX 1
page 5
90 DLPP staff would benefit from an overseas course or workattachment for an average of six months. Short courses on technicaland computer operating matters will be arranged in Port Moresby inconjunction with external agencies such as UNITECH and the NationalComputer Center.
(c) Administrative Training. The bulk of the Department's trainingrequirements relate to the training of staff in administrativeprocedures for land administration, surveying, valuation and physicalplanning. The most arduous of these requirements is that relating toland administration. The existing legislation governing land isextremely complex and no manuals exist to guide staff on thesupporting administrative procedures. In an effort to improve theland administration procedures the department has acquired acomputerized transaction processing and database system--PNGLIS.Once implemented (mid 1989) all land administration transactions andall the administration of surveys, valuations and physical planningwill be processed on the system. Responsibility for the initialtraining and implemtentation of the system will rest with the LandInformation Unit (LIU). Responsibility for subsequent training willbecome the responsibility of the Staff Training Branch. In additionto training Head Office and Regional Office staff, this branch willalso be responsible for training provincial office staff: initiallyin their field related functions, and subsequently to support thedecentralization process initiated under the LMP. To support thetraining of the Department's staff, the Land Information Unit isintroducing a development database in the PNGLIS computer system.This database is a copy of the live database and will enable DLPPstaff to be trained on administrative procedures and to practicetheir computer skills without effecting the live PNGLIS data. Thiswill provide a very effective training tool to the department.Access to this database will be provided to Unitech in Lae to enablethe use of PNGLIS to be included in their courses.
E. Performance Indicators and Resource Requirements
12. Key performance indicators and overall LMP resource requirements forthe Personnel Services Division are shown in Annex 5 Table 1. This table,which is an example of the basic input/output worksheet developed for eachDLPP work units (para. 3.20(c)), projects a total budget allocation over 5years of K 1.7 million. The costs of overseas courses and work attachmentshave not been included in these budgets, as they would be met separately frombilateral sources on a case by case basis. Over five years, the costs of suchbilateral programs are estimated to total K 760,000. The total resourceallocation projected for staff development and training is therefore K 2.5million. Annex 5 Table 1 is supported by Annex 5 Table 2 showing detailedassumptions of incremental and total staff numbers for the Personnel ServicesDivision by year.
13. Annex 5 Table 3 presents incremental LMP costs for the PersonnelServices Division (i.e. project costs). Because almost all of the incrementalresources programmed for this work unit will be devoted to enhanced staff
- 46 - AMhI
Page 6
development and training activity, this table also represents the project'sresource allocation to staff development and training. Baseline project costsover the five years of the program are estimated at K 1.16 million, of whichK 529,000 would be for incremental staff salaries, and K 280,000 forconsultant technical assistance.
14. Improvements resulting from the revitalization of the staffdevelopment and training functions will include:
(a) the establishment of an active dialogue with the heads oforganizational structures within DLPP to identify training needs andcoordinate their satisfaction;
(b) the provision of in-house management and land administration trainingwill enable the Department's managers and land administrators toreceive training that is tailored to their particular needs, asopposed to generic, off-the-shelf training that is less closelyrelated to specific requirements.
(c) a renewed emphasis on on-the-job-training (by supervisors) andcounterpart training. Training guidelines will be developed andsimple training-of-trainers will be provided to supervisors andexxpatriates who have these training responsibilities. The PNGAdministrative College course on Training Skills for Supervisors willbe drawn upon, both in terms of sending key staff to that course andin terms of making use of that course's materials.
(d) the development of an emotional bond between employees and DLPP;employees, especially new ones, must be made to feel that theymatter. As a first step in this process, a complete inductionorientation will be developed, using material already available fromDLPP and DPM, and adding other material relevant to new employeeorientation.
II6 N UAIJMUT I CU LAN I ISICAL ?IfLUM UII IOILIS1A?IOI NDOWN
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401mu I I is is I 9 45 45
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bhbee a5 35 I 11 UI 2S-il grnaUtA 1ne,r1 11 Ul ale ar ineI_UtUt1
Led laupr aailable for mrutat ts ha" et ba e-1............................................................ - ------------ ------------ lokigh is te * Ib su|ili.
011-tao l U 38 13 li S...... ...... ............... ...................... ........ .......... . .... .. .......... ...................
2. IIFSAT
T ec fflicer, I1 s Is Is -IIraf tame. If I I IS SLhi.WIis It 21 31 SI -I.............................. ... .. I.. .......................................................................
Seobbt#l f 25 15 a 3............................................ ......................................................
tOt 126 45 I It s III............................................. ......................................................
54 - ANNEX 2Page 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Mobilizing Alienated Land
List of Proposed Short-Term Legal Changes
Land Act
1. Amend 8.69 to remove the need for Ministerial approval of short-term(three years or less) subleases, except in cases where the terms of thesublease provide for automatic renewal beyond a three-year period.
2. Amend 8.69 to remove the need for Ministerial approval of mortgages givenby *approved lenders" (approved lenders being all registered banks andfinancial institutions).
3. Provide for the allocation of leases by auction.
(This will allow any vacant parcel of unallocated State land to beoffered to the highest bidder at a public auction, speeding up theallocation process and recovering market value of the land.)
4. Amend ss.40, 46 so that approval to alter the purpose for which a leaseis granted does not have to be obtained if the proposed use is in accord-ance with Town Planning Legislation.
(This minimizes the procedures necessary where the land use ischanged.)
5. Amend s.40 to allow the Minister to vary the purpose of all leases uponrecommendation of the Land Board.
(This would enable the purpose of any lease to be varied withoutsurrender and execution of a new lease.)
6. Include provisions for the compulsory acquisition by lease of both alien-ated and customary land for public purposes.
(This would clarify the right to compulsorily lease, a measure whichmight in some instances be more acceptable and appropriate.)
7. Give the Land Board power to allocate leases rather than merely makingrecommendations to the Minister and abolish appeals to the NEC againstdecisions of the Land Board and provide for appeal to the National Court.
(This would reduce the number of appeals and take them out of thepolitical context.)
- 55 ANNEX 2Page 2
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Mobilizing Alienated Land
List of Proposed Legal Consolidation
1. Amend and consolidate trespass to land and eviction provisions in theLand Act, Land Trespass Act, Summary Ejectment Act, Land SettlementSchemes (Prevention of Disruption) Act, Enclosed Land Protection Act,Criminal Code Act and Lands Acquisition (Development Purposes) Act.These provisions are, in the main, duplicative and it is unclear who hasresponsibility for taking action to evict trespassers.
2. Provide for a comprehensive law dealing with acquisition of title byadverse possession/prescription. At present, a defective law on thismatter (the Distress, Replevin and Ejectment Act) applies only in respectof land in the former Territory of Papua. This law will allow for secur-ity of ownership and enable the land to be used as collateral for loans.
3. Consolidate (with appropriate amendments) several laws regulating privateleases including the Bodies Corporate (Joint Tenancy) Act, Landlord andTenant (Miscellaneous Provisions) Act and parts of the Summary EjectmentAct with other general property statutes such as the Land (Estates Tail)Act, Fencing Act, parts of Statute of Frauds and of Limitations Act,parts of Laws Adoption and Adaptation Act, Aliens (Property) Act andSettled Land (Papua) Act into a general property statute.
4. Incorporate into the Land Act, with amendments, the provisions of theseveral separate statutes which deal with areas covered by the Land Act.These include the Lands Acquisition (Development Purposes) Act, ArawaTownship Development Act, Land (Interest on Arbitrated Compensation) Actand the Property Dealings (Validation) Act.
56 - ANNX 2
Page 3
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Mobilizing Alienated Land
Delegation of Powers Under the Land Actto E. Sepik and E. New Britain Provinces
Section Power
8(i) To refer matters to Land Board12(2)(a) To refer matters back to Land Board
15 To acquire customary land by agreement with customary owners15A To lease and grant leases back to customary owners
29(1) To grant leases31(2) To exempt land from advertisement
To grant specific leases
49 - Agricultural leases51 - Pastoral leases54 - Business and residential leases59 - Mission leases63 - Special purpose leases
40 To relax conditions and vary purposes of leases45 To accept surrender of lease46(l),(2) To forfeit a lease57(5) To exempt land from requirement for offer by tender66(7) To grant lease without offer by tender66B To approve subdivision of town land66C To grant and accept surrender of town subdivision leases71 To approve subdivision of lease72 To approve a consolidation of lease79 To inspect leased land for compliance with conditions
67(1) To grant licenses for specified purposes67(2) To fix conditions on licenses67(5) To revoke licenses
80 To inspect land to determine suitability for a public purpose81.82 To authorize temporary occupation of non-government land and
perform certain actions114,(3) To authorize a person to carry out an arrest for certain
offenses
- 57 - ANNEX 2
Page 4
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Mobilizing Alienated Land
Alienated Land /a(ha)
Rural land Urban land TotalType of tenure Parceis area earceis Area P'arce.ls Area
Customary Land /b 1,446 35,540 437 1,040 1,883 36,580
Lesser Interests, Land Usedror FUDic rurposesset asiae 3,373 28,005Certificates of occupancy 5,070 16,553Licenses 79 2,332Reserved land 203 6,739Airport land 5 785
Total 8,730 55,414
GRAND TOTAL 75,360 462,395
/a Parcels held on PNGLIS on September 6, 1988. This represents about 75X ofall parcels of alienated land.
/b Customary land enclosed by alienated land and, therefore, not availablefor leasing.
/c Freehold before Independence.Converted from customary land to freehold land since Independence.
- 58 -
Page 5
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Mobilizing Alienated Land
Estimates of Total Alienated Land /a
ha
Freehold Land
Freehold before Independence 15,000
Land tenure conversion 15,000
Subtotal 30,000
Land leased to private parties 200,000
Land used for public purposes 60,000
Land not under leases (vacant or unverified) 310,000
Estimated Total 600,000
La Based on area of parcels held in PNGLIS on September 6, 1988, whichrepresent about 752 of all parcels (see Annex 2, Attachment A).
-59 ANNEX 3Page 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Customary Land Issues
Limits to Acquisition
1. The recognized method for mobilization of customary land has involvedpurchase by the State, thereby alienating the resource from the people. Landpurchases by the Government now require a high level of skill in developingand negotiating arrangements which satisfy the aspirations of landowners. Inmany parts of the country, especially those of high population density andwhere large areas of land have already been alienated, customary owners areunwilling to accept permanent alienation of their land by the State for publicpurposes, let alone for development purposes.
Land Development by Owners
2. Various official procedures have evolved to encourage development ofcustomary land by the people by providing security of tenure and access tocredit. These are:
(a) Clan Land Usage Agreements--which are only used for loans belowK 10,000 in respect of parcels of 5 ha or less, as no formal title isconferred;
(b) Tenure Conversion--involving the conversion of the customary landinto freehold title; and
(c) Lease/Leaseback--involving a lease to the State and a sublease backto the customary owners and mainly used to meet the security require-ments of the Agriculture Bank in respect of 20-ha parcels.
3. The two latter measures, although leading to a formal title, haveproved to be slow, cumbersome processes and have not gained universal accep-tance. Measures have recently been taken to make land the subject of tenureconversion more valuable as security of loans by facilitating the removal ofthe restrictions on mortgagees' powers imposed by the Land (Tenure Conversion)Act. DLPP has also recently taken a number of steps to streamline theprocesses involved in lease-leaseback. However, neither of these forms oftenure are seen as providing suitable long-term solutions to customary landmobilization.
Land Demarcation and Registration
4. Traditional land tenure is being modified under the influence of thecash economy, greater mobility, population growth and education. For manyyears, there has been agitation for the facility to register or record titles,giving legal recognition to customary tenure. Partly this has been for the
- 60 -AM=X 3Page 2
purposes of quieting land disputes, but in more recent times, the emphasis haschanged in that registration is seen as a means of facilitating the economicdevelopment of the land. Two abortive attempts have been made to introduce aregistration system, first under the Native Land Registration Act of 1952 and,second, under the Land Titles Commission Act of 1962. The first attemptconcentrated on individual applications, of which 176 were decided, but only afew plots were surveyed and none were registered. The register establishedunder the 1962 legislation was suspended in 1970 at a time when no titles hadso far been registered.
5. In 1970, further bills for the registration of interests in customaryland were tabled in Parliament but were withdrawn in the face of widespreadobjections. Following the withdrawal of these bills, the Government set upthe Commission of Inquiry into Land Matters, vhich reported in 1973 on a widerange of topics, including registration of interests in customary land. Theissue continued to be the subject of discussion and investigation, e.g., in1981 the paper on Land Policy and Economic Development in PNG 1/ and theReport of the Task Force on Customary Land Issues in 1983. Further work tookplace in DLPP on customary land registration, leading to NEC approval in 1984to the drafting of a bill which has not as yet been introduced intoParliament, largely because of criticism of various aspects of the legislationby the consultant, Raymond Noronha.
6. East Sepik Initiative. The inability at the national level toprovide the requisite legislative framework has resulted in East SepikProvince enacting its own legislation for the mobilization of customary land(Attachment A) and various other provinces are considering following suit.
7. Bearing in mind that alienated land is a dwindling resource andunlikely to be augmented to such an extent that it could figure increasinglyin development and that the future for land development in PNG lies with cus-tomary land, the East Sepik initiative becomes extremely important and will besupported by the project. The East Sepik Government has taken into accountmany problems encountered and issued raised previously and has produced thatdoes not merely provide for registration of customary land in the name ofkinship groups (class), but includes provisions enabling direct dealings inland by the customary owners without dependence on the apparatus of the Stateto release land for development. It provides the legal basis for land groupsleasing land for housing development in Wewak. Thus it provides analternative to the many illegal arrangements being concluded around othertowns. Furthermore, not only is it a pilot project for customary landdevelopment, but also for decentralization of land administration generally.
8. Outstanding issues with the East Sepik approach to land registrationares (a) constitutionality of East Sepik legislation; (b) should registrationbe systematic or sporadic (on request); (c) titles issued would be indefea-sible (under the prevailing Torrens system) i.e. that the Govermnent of EastSepik would have to compensate those whom a court will determine subsequentlyas the original owners. This could happen in particular as the legal concept
1/ S. Knetach, M. Treblicock, Land Policy and Economic Development inPapua New Guinea, 1981, Institute of National Affairs, Port Moresby.
- 61 - ANNJX 3Page 3
of 'adverse possession' does not exist (guaranteeing land use rights aftercertain periods of unchallenged occupancy); and (e) administrative capacitiesrequired for ascertaining land use rights, registration and demarcation.
9. National Frame Work Legislation. However, other provinces are nowpreparing to proceed separately with legislatior to enable provincial landadministration and customary land registration without waiting to observe theEast Sepik system ir. operation. It would be clearly undesirable from the viewof uniformity of land laws for the provinces to proceed separately on thisissue, each with its own legislation. Furthermore, there is also apossibility that the existing 1984 draft national legislation could beintroduced.
10. Instruction for the drafting of legislation for the enactment of anational code setting out principles of land policies binding on all provinceshave been prepared and are being commented on by a consultant. This codewould be in the form of a uniform national framework which leaves theprovinces with the scope to add subsidiary or supplementary legislation inrespect of matters peculiar to a particular province or region. This would befurther pursued during the project.
Land Dispute Settlement
11. One source of continuing problems has been disputes concerning landrights, particularly in respect of customary land. These problems are likelyto be exacerbated in the short term by the demarcation and registration pro-cess which will bring to the surface disputes among the various claimants.The Land Disputes Settlement Act set up a system of decentralized disputeresolution, involving informal mediation, and in the event that mediationfails, binding determination by local Land Courts, with appeals therefrom toprovincial Land Courts. This disptte resolution process has proved to be bothlimited in its effectiveness and prone to delays. At present, Land Courtmagistrates act as such in addition to a wide range of other magisterialduties. For many years, there have been recommendations for an upgrading ofthe quality and training of local Land Court magistrates, with full-time spe-cialist Land Court magistrates being appointed.
12. The Department of Justice is now considering the amalgamation of theNational Land Commission (responsible for clarifying the title to Governmentland held for public purposes), the Land Title; Commission (responsible foradjudicating land rights and converting customary land to freehold) and theLand Courts in an effort to rationalize and improve the land dispute settle-ment process. For many years, there have been calls for the appointment of aspecial cadre of Land Magistrates possessing upgraded training in land-relatedsubjects. In addition, consideration has been given in recent times torationalization of the various bodies responsible for determining landdisputes. The project would provide for a consultancy to provide improvements(Annex 8, position 2.1.6).
- 62- ANNEX3
Attachment APage 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Customary Land Component
East Sepik Legislative Scheme
1. In March 1987, the East Sepik Provincial Assembly passed two laws:the Provincial Land Act; and the Provincial Customary Land Registration Act.
Provincial Land Act
2. This Act has been drafted so as to be generally consistent with theNational Land Act. It contains provisions dealing with:
(a) the application of the Act. It is to be the main land law of theProvince and to apply to all land in the Province except NationalGovernment land in certain cases;
(b) the general law applying to land in the Province, i.e., that land iseither held for a title under the State or is owned by customarygroups under customary tenure;
(c) administration, i.e., the Executive, the Land Board and Land Manage-ment Committees;
(d) the acquisition of land by the Provincial Government;
(e) state leases of Government land. It covers the granting of leases,the different kinds of leases, conditions of leases, rent, forfeitureof leases and appeals;
(f) licenses of Government land; and
(g) dealings with both customary land and State leases.
3. The major difference between the Provincial Land Act and the NationalLand Act lies in the more extensive powers granted under the Provincial Actfor customary owners to deal with their land.
Customary Land Registration Act
4. (a) Under the Act, there is to be a new Office of Registrar of CustomaryLand who will be responsible for establishing and maintaining theCustomary Land Register.
(b) The law provides for registering customary land at two levels:(i) registration of full ownership by a group; and (ii) registrationof interests less than full ownership.
- 63 - ANNEX 3Attachaet APage 2
(c) The other basic distinction the Act dravs is between: (i) registra-tion in declared Customary Land Registration Areas (CLR Areas); and(ii) registration outside such areas.
(d) The effect of the law is that: (i) within CLR Areas a registration--either of full ownership by a group, or of an interest granted by agroup, or of an interest granted by a group in a dealing (approved,if necessary, under the Land Act)--is conclusive evidence of title;and (ii) outside CLR Areas, such registrations are only prima facieevidence of title.
(e) CLR Areas will be declared in those parts of the Province where pri-ority needs to be given to strengthen the ownership of land and whereadministrative capacity exists to undertake registration. Withinthese areas, systematic investigation and registration will becarried out.
(f) Outside of CLR Areas, people will also be able to apply for registra-tion of their rights in land, but the law will not give as much pro-tection to these rights.
- 64 -AEX APage 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Land and Resource Information Component
Training, Private Sector Involvement and Cost Recovery
A. TraininR
Education and Training
1. The Department of Surveying and Land Studies of the PNG University ofTechnology (UNITECH) offers the following coursess
- degree in land management (3 years);
- degree in surveying (3 years plus 1 year practical training);
- degree in cartography (3 years plus 1 year practical training);
- diploma in surveying (2 years plus 1 year practical training);
- diploma in cartography (2 years plus 1 year practical training);
- diploma in land administration (1 year);
- post graduate diplomas in land studies;
- higher degrees.
It is intended that UNITECH will have access to the PNGLIS database toinclude its use in their courses.
2. After graduation, surveyors are required to obtain certain practicalexperience and to pass examinations in theory and practice of cadastralsurveys. On completion, they are registered by the PNG Surveyors Board andare authorised to carry out cadastral surveys.
3. The Royal Australian Survey Corps (RA Svy) is providing technicalassistance in training NMB field and cartographic staff. Currently two NMBofficers are in France studying the use of satellite imagery in mapping.
4. NMB is very reliant on contract staff at senior levels for managementand training. As is commonly encountered in this situation, the day todaypressures of management reduce the attention given to training and technologytransfer.
- 65 -
Page 2
Staff Training and Development
5. The present tertiary education in PNG provides courses which areadequate for DLPP's requirements in land administration, surveying andmapping. Post graduate training of surveyors for registration under theSurveyors Act and of surveyors and draftsmen in specialist areas, e.g. remotesensing, digital mapping etc., needs to be given close attention. Training ofmanagement staff should be incorporated in the DLPP staff developmentprogramme for adequate management of surveying and mapping functions and toprovide a source for the wider needs of DLPP management.
6. Training in specialist areas can be done by arranging for shortcourses to be run by UNITECH, overseas training where necessary and specialattention by contract officers to training and technology transfer. The lastaspect is critical if the objective of reliance on overseas staff is to beeliminated in the foreseeable future.
7. The delays by DLPP graduate surveyors in obtaining registration underthe Surveyors Act reduces the Department's ability to efficiently meet thedemand for cadastral surveys. This requirement, normally completed in abouttwo years, sometimes takes ten years or longer. There is a need for thisaspect to be included in the DLPP training and staff development programmes.
8. Under the project, the Surveyor-General, the Director of Mapping andthe Manager (LIU) in consultation with the Personnel Services Division andsenior contract officers, would design and implement training and developmentprogrammes for surveying, cartographic and computing staff to address theissues raised above.
B. Private Sector Surveying and Mapping
9. Large mining and development companies provide their surveying andmapping needs in house or use the services of mapping and surveying firms inPNG or overseas. The local surveying and mapping private sector (with a fewexceptions) is virtually a cottage industry i.e. mostly small firmsspecialising in cadastral surveys.
10. Currently, it consists of one mapping firm (producing maps and aerialphotography) and twelve firms (including two large ones) with a total capacityof about 23 field parties. The smaller firms are based in Port Horesby (3), MtHagen (2), Mendi (1), Goroka (1), Manus (1), Kieta (1) and Rabaul (1). Thetwo larger survey firms have branches in Port Moresby, Lae, Kainantu, Kimbe,Rabaul and Kieta.
C. Cost Recovery
11. There is a need for a policy on cost recovery for surveys to ensureconsistency. Charges shuld reflect the cost of the work done or the goingrates charged by the private sector. The Survey Priorities Committee (whichno longer operates) recommended that surveys done for Departments (other thanDLPP), authorities and the public should be charged at private sector rates.Survey instructions issued in DLPP were to be charged in accordance with theLand Act Schedule. The present practices appear to differ from theserecommendations. There is therefore a need to review them to ensure thatadequate cost recovery takes place.
- 66- ANNEX 4
Page 3
12. In order to relieve the strain on Departmental staffing, increaseduse of private surveyors needs to be considered. At present, the privatefirms are thought to be operating at about their capacity. Any significantuse of their services should therefore be phased in over some years to enablethen to increase their capacity and to avoid wholesale migration of surveystaff from DLPP to the private sector.
- 67 -
ANNE 4Tal 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Geodetic Adiustment and Tonpographic Mapping Schedule IA
PY1 PF2 PF3 PF4 PF5
Geodetic AdiustmentData collection and editing by consultants --xx xxxx Xx--Design of observation and adjustment programby consultants x--- -XX- -xx- xxxx
Contract surveys for astro leveling and sealevel xxxx XXXX XXXX
Preparation of NMB ---xComputer specifications by consultantTenders and contract xx--Delivery of computer --xxInstallation and acceptance testing x---
1:100.000 UpdateStudy and specifications for remote-sensingequipment by consultant -- -x
Tenders and contract for remote-sensingequipment xx--
Delivery of equipment --xxAcceptance testing and tralning by consultant x---Updating of 1:100,000 maps -xxx xxxx xxxx
1:25.000 MappingDesign and specifications for upgrade ofremote-sensing equipment by consultant -- -x
Tenders and contract for equipment xx--Delivery of equipment --xxAcceptance testing and training by consultant x---Production of 1:25,000 -xxx
Cagital WorksNMB extensionDesign, tender and contract xxxxConstruction xxxx
IF4 - r " , 4 , j r n fl 'Vi , 4s s s i ' .w -
- 68 -
MME 4Taible 2
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Maior NMB Eauipment Requirements
EstimatedYear/item Activity cost (K'OO)
PlRl3 global positioning systems Geodetic adjustment 375(Magnavox or similar)
Equipment for astronomic Geodetic adjustment 40(La Place) observations
PY2Integrated remote-sensing system Topographical mapping 1,200including software and 3 work program (1:100,000)stations with digital encodingcapacity
.PY332-bit scientific computer with Geodetic adjustment plus 42532 MB CPU; 1 GB on-line disc ongoing geodetic anddisc storage; 200 MB removable photogrammetic computa-disc storage; dual magnetic tionstape transport and controller;communication interface;master operating console;high-speed line printer.Remote equipment consists of6 communication controllers,8 terminals, 1 three-dimen-sional color graphics terminaland universal asynchronousinterface
PY4Upgrade of remote-sensing system 1,125consisting of additional pro-cessor and disc storage; filmplotter; color ink-jet plot-ter; 2 work stations; digital-ly encoded film/opaque scanner
- 69 -ANNEX tPage 1 of 4
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Logical Framwork Analysls
Narrative Suarv Indieators and Assumptions
Overall Goal Overall Goal Indicators
TO CONTPI1UTE TO ECONOMIC GROWTH THROUGH THE - X of alienated land parcels uoed productively (i.e.,MORE PRODUCTIVE USE OF LAND THROUGFOUT PNG In occordance with leao conditions)(WITH EQUITY, EMPLOYMENT GENERATION, LAND-OWNER X X of cuotoary land with developmnt potentiol usedPARTICIPATION, AND SOCIAL STABILITY) productively.
Process Linkina Assumptions
- Land-users (clan groupe, Joint ventures, - a clear policy and legislative environmnt combinedcopnies, individusl, Governmnt with effective delivery of land services will encour-agencies) are encouraged and enabled to age land users to Invest in lond-based activities.invost In appropriate land-basod - registration of tenure ia a prorequisite for Invest-activitios. ment by external (i.e., non-cusotmary owner) parties
In land based activities.- the equitable rights of Individuals are preserved upon
registration of tenure.- appropriate land based activities In PNO will involvecustomary landowners as equity participants and willenable their participation in the doelgn and lmploen-tation of those activities.
- appropriate land based activities (such as agricul-ture, forestry, mining and Industry) will result Inemployment genoration.
- tenure rogistration must support the dynamTc naturo ofcustomary ownership and honce *oaTit In the presrva-tion of social stability.
- appropriate land-based activities will be predomi-nantly productive In nature.
- productive land use results in economic growth throughthe use of land resources.
- financial resources, sanagement and technical assis-tance are provided to land users by other agencies.
- planning and land dispute sottloemnt m*chani m are Inplace and effective.
- decentralization of land administration will result Ina more officient and responsive delivery of landservices.
Propram h7 dit,o b ectlves (Impact) Impact Indicators(to be aCh*ve n I- yrs time* ram)
a. To crete a clear policy and legislative - Effect 2aenvironment to promote invoetmnt in land.
b. To enable customary land owners to - Effect 4cincreasingly participate in the developmntof Sheir land.
c. To provide effective land services to all - Effect 2aland users (surveying, title registration,valuation, land transfer and disposal,mapping, land acquisition, disputes*ttl ement and physical planning).
d. To transfer land administration - Effects Sa A Sbresponsibilitios from tho nationalgovernment to the provincial governments.
* To optimiz the uso of the stock of - Effect 3balienated land. - X of parcels with usage complying with lease
conditions.
NOTE: This chart should be read from the bottom (Page 4) to the top, to follow logically the processwhereby Individual program activities contribute to overall program objectives. Descriptions ofkey processes are inserted between the tiers In the 'hierarchy of objectives', to indicate how theachievement of *ub-objectives Is expected to load to the achiovement of higher-level objectives.Key assumptions are also shown, that must hold true if those procosseo are to result in theachievement of higher-level objectives.
- 70 -ANNEX 6Page 2 of 4
Narrative Summary Indicators and Assumptions
Processes Linkina Assumptions
- Legislative and statutory bodles endors - DLPP has a sound ollcy making capacity, and can mobi-and asslt DLPP Initiatives for develop- lize the support At legislative and statutory bodies.sent of the lands asetor. - Titl Is acceptable to financial Institutions or
- DLPP und provincial governments promote Investors to support economic activity.tho use of titl. registration mechanism - Awareness of those mechanios will result In theIrby customary landowners. us.
- Customary landowners form corporate bodies - Customary landowners are willing to Incorporate(clan land/businoss group. or companies) - Individual rights are oquitably repreonted uponto seure title registration. incorporation
- An efficient and coot effective Incorporation processcxl ta.s
- Customary landowners s*ok funding for tho - Title Is acceptable to financial institutions ordevelopment of their land, Investors to support economic activity
- Finncial resources are available for land devt.- Land services *re progrossively dec-ntra- - Provincial mnagement of these services will result inlized and mde more efficient a mere responsive and efficient delivery thereot
- Provincial Land Monageomnt Committee - Thoso committees interpret provincial government landIdentify, prioritize and coordinate land policies and are representative of various interestInitiatives In the provincoe groups
- Government sectoral policies assist to provide condu-cive investment environment.
-Simplified legislation and procedures will (acilitateland mobilization.
Component Obi ecties (Effects) E?fects Indicators(to be achi*ved In 5-7 years)
:. Pr2sram Monan nta. To emprov m m enog snt of land administration - Outputs 1.1 *-a -
In PNO.b. To Improve and maintain professional - Published -tandards and quality measures In place
standards and the quality of land services. - Outputs 1.2 - 1.5c. To provide the necessary physical - Outputs 1.1/2.8a
facilities.
2. General Institutional Strongtheninga. To *stablish Improved land policl-, legis- Enactment of revised legislation by PNG parliament
lation, and procedures.b. To Improv- DLPP's capacity to:
- develop policy; - Outputs 2.1- promote land registration for developmnt; - Outputs 4.0- deliver land services; - Outputs 2.2; lease issuance period reduced- generate revonue from these services. - X of all land parcels generating revenue
c. To Improve PNO's land dispute *ttlement - Number of unsettlod disputes.capacity.
3. MobilizIng Alienated Land - Consolidated national land legislation enacteda. To introduce an improved and cost-effective - Direct unit cost for ease issuance
system for administration and mobilization - Number of leases issued per yearof alienated land. - Allocation of alianoted land parcele mI ete dmand.
b. To rationalize and mobilize the stock of - X of mobilized (ie, allocated and revenue-alienated land. generating) land parcels is increased from 23x to -X
by PY()- X of land parcels used for appropriate uses (i.e., In
accordance with lease conditions).
4. Mobilizing Customary Land - Number of provinces with established policleo.a. To develop an acceptable and cost-tffective - National framework legislation for customary land
method of customary land registration and dealing and registration Is enacted.mobilization.
b. To expedite tho mobilization of customary - No. of applications unprocessed/processedland. - No. of prove. with effective land mobilization
capacity.
- 71-Page * of 4
Narrative Summry Indicators and Assumotlonc
C=nent Ob]ctiv- (Eff ct (cont'd) Effect. Indicators (cont'd)(to b chieved in s-i y ro)e
5. Decentralization of Alienated LandAdministration
a. To develop *n *cceptable and coat-effective - Outputs Sb and d.system for decentralizing al*Inated landadminiatration.
b. To expedite the decontralization of land - Output 5 C.administration functions to the province.
6. Land and Rosource Informatlona. To provide an up to date information base - Outputs 6.1 a, d A *, 6.2 *-e.
for customary and allonted land (withtitle, land-use, geodetic and topographiclnformation).
Processes Linking Assumptions
1. Proarom Monagement-DLPP 5-year program Is implemented as a Central agencies will provide necessary supportpilot exercise in program budgeting/ - National Land Management Comittee (NLMC) A Resourcemanagement. Managemont systom 1s functioning.
- Program Management Committee and quarterlyReview meetings provide a context for - Appropriate technical assistance to provided In aaccountability and problem solving, timely fashion with a private firm providing support
In recruitment and administration of consultants- Technical assistance rsult. In the transfer of skillscapacity to DLPP staff.
2. General Institutional Strengthening- Consultants, study recommendations are D DLP'o draft legislation Is enacted.
considered, and appropriate actions are - Strengthened Pol. A Prog. Division able to developInitiated by DLPP. policloe.
- Draft legislation Is Introduced and - DLPP-initiated proposals to Improve land disputeexpedited. settlment mechanims are accepted, funded, and lmplo-
- Policies conducive to lnvestment In land- mented.based activities are developed - Effective staff development, training and recruitment
- Land dispute settlement mechanism are will load to enhanced DLPP capacity to develop policystrengthened and deliver *ervices.
- Adequate and suitable personnel aresecured.
S. Mobilizing Alienated Land- Establish work progrms In liaison with - Provincial government. are supportive.provincial Land Monagemnt Committee - Land-revenue generation mechanims arm Improved.
- Undertake appropriste mobilization actionIn support of evaluated potential.
4. Mobilizing Customary Land- Landownors' participation in tho dovelop- - Provincial govornments support LMC formation.mont of their land reources (through - LMC membership includes reprosentatives of customaryincorporation into land,business groups or owners and other interested parties.companies) Is encouraged. - Publicity program in In place and effective.
- Suitable titleo are provided to meet the - Administration of land/business group registration Isdemand of customary land owners wishing to Improved.have equity participation In the develop- - DLPP's draft legislation Is enacted.ment of their land. - Land dispute settlement mechanism in place.
- Rosources are provided to the provinces to establishthoir land administration capacity.
5. Decentralization of Alienated LandAdministretion- Provision of resources to support delega- - Mechanism for delogation is improved.
tion of land administration functions. - Provinces met dolegation qualification criteria.- Provision of technical support to maintain - DLPP supported by central agencies per MOU.standards of land administration. - Provision of PNGLIS processing systmes.
- DLPP strengthened through LMP to provide support.
- 72 -Pag 4 of 4
Narrative Summary Indicators and Asaumotions
6. Land and Resource Information- Intrdu*en a Prsponsive mpping pollcy. - Croes-soctoral priorittio are etabllshd.
- NLMC and Mapping Council are *etablished.
COWPONENT OUTPUTS ) Refer to detailed Input/output workeheeta which were prepared for eech ofD LUP'o 15 work unite. They are In Project file, Docuent 1.1.
PROCESSE ) An exaple of the three worksheet. for Work unit Personnel Services Divielon
COMPONENT INPUTS } (Component 2: Gneral Institution Building, Subcomponont 2.2) are in Annex 1,Table 1, 2, 3).
on Mt iut {tWof muisi - s nuntCOW: 2. C41* JI MI? OI MILOlIt SIICUPOt 2.2 nP U= 11 StICS M BI0T: K60611U SMIICK 1 4151
IIIbICATOIST u OtM ?rs lninwoi no FYI 1,2 n3 nP ns
::::::::::::::::::::: Btwiuiii ui II to II 12 13
Ierit staff to deh prtelt *acaicie -S6ippate ratio: 135 20 1in In lot lot(Feaded pnoe.. -1scs)
Folded posts I -1 of planed recrlitmts 10 tiO 1l0 III IItfilled by year-esd
-program #tUlf deweleput -t of aremr paths flslised too tIo I01 III top
-Stitt perforucet appraisal -r stff iacladed is 25 iS Iff lItfall stff appraisal systn
mun tlUiIIiIu-boaa afsamut modl" deigd, TO -lo rodcle S
PS Din. -lo. odeles S S lo-em ablistrntios dodl" desited -lo. modules 10 IS IS 15
1-oem mamtamest truiusi coadcktd m -lo. atteuiases 51PS Din. -lo. attedsce St Itl Itl IN
iu-hlse adalistratiom traisi4s cosdcted -lo. tteNadaces St 201 2to 2N
I mule day coune (tick sa cower sore tkoa I topicl htteudaces: lo. of modles I haer p h. of staff petr m lelaagent traitor aaud to cordlct 2 odoln, per moatb (lam staff sill otwed more tkas I modblelUdeltratloe trainrs assued to coudct 4 sodules per soti eact
"I t lem7 Qeatitles gait et. COOK)6.it no "I 1`2 Pt3 P74 Fs Cost. "I "I P12 m3 nt M Ttal
is 19 90 91 92 93 'I" I1 UU t 1l9 It" 1 1111 52 15 ("I1-I)11.Sarp etc. (Total staff)
-trmtn Staffpears 3 4 1 6 6 14 41 41 U U4 64 I4 36-liplemates Staffitan 2 1 1 1 1 10D 16 12 6 I I I t4-clerical Staffeara 4 S 7 7 T tIC 6 24 2? 42 42 42 42 ItS-OtLtns Sbtafears 0 0 e 0 0 00 4 I 4 I I I p I-Cootract Stalffesrs 0 2 2 2 2 2 CO 35 I 31 76 7t is To 315
ti2 tmel ste. trip 110 to1 65 is 65 065 11 12 4 41 17 4 262U.ltilitine Staff 9 12 16 is 16 16 0.5I 2 1 1 1 I J 43ft.gsts. a sppl 1.5m 1 I 5 5 S 5 25WSPlast lTrap. hs I I I I I 6.172?? I I I I I JII.Special Sericas Attedim I I 9 I I 1.1 2 I to 1o 1 16 aItCapital 1et L. Cn t 21 1 11 If 11 a111.rossatmllu . L.mm In Otter L.Sn I 6 3616.Otr loilntn Staff 12 6 16 t i 16 1.4 1 5 I t 6 I I iI
Itm 2-16 Sdhtotal 2-11 Sltot 32 In 11 U 11 a fN
Um 1-1 101111. 1-11 tetatll 253 114 2U3 262 3 I4
Coital hb9k Cfb 1w apori Lows) I I I I I I I
tscmcal Insituce Cuts (sm tmort tabl I 42 114 U a 11
TA 1.3.1 Cutomary Lend DOmrcation and S Inter- we S 12,000 56,000 600
Desrcation tehnique Survey Speial it national
Ia Steff-M0mth..Ak PI is 1969
TA 1.5.1 Prpuration ot Physical Physical Planner 10 Sole Source/ WO 10 12.000 151.000 0O110.000Planing N.wala Internatinal
TA 1.8.2 Ibral Physical Planning Rural Planmnr 6 UN we 2 2 2 .1SO 8*000 C2000 $m 9.000Erci see Vol unter
Comint 2: GeneralInstitution Building
TA 2.1.1 Allocation Pricieng a Financial PolicY/ 2 Auetr,1ia AMAS 2 12.000 24.00 54.000rat determination Lan_ Sconomiet
TA 2.1.2 Allocation pricing, rent Valuer with Cav 2 Australni AIDS 2 12.000 24.000 24.000detrmination and experiencecomputer-seeistedvaluation (CW)
TA 2.1.8 Legl/Socioloeical Lawyer/Soceal S Sole Source/ W 1 1 1 1 1 12.000 12.000 12U000 12O000 U3*5 OOO U0.40.
Rewvi of plannd lAd' anthropologiet InternatioallegIslation
TA 2.1.4 Legal a*s_tence to Lawyr-Al Insted Land 7 International W 2 2 1 12,000 24,000 24.000 U2,000 U212.0110 eo 114.00formulate n_w alienated (FM Experience)lnd legislation (shorttera and "eus term)
TA 2.1.5 ievies af Diepute Land Diepute Settlement 4 International WI 4 12.000 40.000 4eooSettlement bcbhniem Special let
TA 2.1.6 Prwearation of Proceduree Nmaial Writing Spc;i lIet 6 Intern atioal Wi 2 2 2 12.000 24.000 24.000 4.000 72.0001nu-le Specialist
TA 2.1.7 Study of different land Laar/Land Tentre a International VI a 12,000 SO.00 000allocation and tranefer specialistsystems
TA 2.1.8 Organiation and ftnagement GUI Specialist Iternational WI 12 12 3 S 7.000 42,000 i4.000 24,000 21,000 21,000 SM.0@Oadvice (developing country
experi nce)
TA 2.2.1 Staff Development and SDLT SpecialIit 40 International W 0 12 12 6 4 7.000 42.000 84,000 ".000 42,000 2 COO m10000Training
fr1)
. a. ** _. se..u _
Commnnt 4: MobilizingCustorj Land
TA 4.01 Customary Land Tanure Social Anthropologlit 3 International W I 1 1 12.000 12,000 12.000 12,000 U.0001
Invowtisatblon
TA 4.02 Legl Assistance - Laaer/Cusemry Land 3 International W1 1 1 1 12.000 12,000 12.000 1#.00 o.000
cua_omry land Specialalot
Cmengnjt: La andPesource Inforetion
TA 6.1.1 Mlangement of Lend EP Project Monnger 36 International U 6 12 12 6 7'000 42.000 4,000, 64,000 42,000 2 f,eoo
Info,etien Unit
TA *.1.2 Operations Hnager (LIU) PNO.LI superi ence 36 Sal. Source/ We 12 12 12 7,000 64.000 34.000 64.000 =.ao
Internatio nal
TA 6.1.* Date Vertificetion Survey Draft (6) 6a AutralIa AM" 66 7,000 442,000 442.000
TA 6.1.4 Investigate Linkage P1N1S Specialist 1 Sole Source/ A 1 12,000 12.00 12,000
"1a a P"is Tchnici an Australia
TA 6.1.5 Investigate linkae. O Date Ca nicatina 2 Anetrelia A11 2 12.000 24.00 24.000 0D
hetean Me and Pl4LS Specialist
TA 6.2.1 ODfintion of Rnatb Reest Sensing Syata 18 AustralIl AMAD4 J 6 a 6 12.000 D 6.000 72,000 36.000 72,000 216.000
Sensing System riresnts Specialistand ais-tance withacquisition, installation
and iaplementation
TA 6.2.2 Geodetic date collection Geodetic Surveyors/2 46 Australi AMd 12 24 12 6.000 6,000 19m.000 6.000 364.000
and editing
TA 6.2.8 Geodetic adjustment and Geodetic Dotu" 27 Sole Source/ AMd 0 6 6 12 12.000 W60OD 72.000 72.000 144.000 S4.000
TA 5.2.5 Date Proessing Syatem Date Processing a Australias AMAD a 12,000 3.000 3.O
Consultnt
TOTAL i2O zJ.m0 au.1n M 1
- 87 - A
Page 1
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
DEPARTMENT OF LANDS AND PHYSICAL PLANNING
Revenue Forecast 1/1989-1993
Prior Year's Collections
1. The bulk of revenue collections of the Department of Lands and PhysicalPlanning is from land lease rentals (LLR) which represented a collectionof 94.52, 90.32, 92.62 and 84.82 of the annual collections in 1984, 1985,1986 and 1987, respectively. (Sourcet Public Accounts Books 1984 to1987).
2. The total collections for the years 1984, 1985, 1986 and 1987 wereK 5,308,000, K 5,416,000, K 6,417,700 and K 7,535,900, respectively,which had shown gradual upward growth.
The forecast of revenue for the year 1989 to 1993 follows a review of thecollections in 1987-8.
Revenue Collections in 1987
3. A total of K 7,535,900 has been collected in 1987 as followst
Amount PercentageRevenue Head and Subhead K '000 2
131-1 Land lease rentals 6,391.93 84.82131-3 Sale of allotments 769.46 10.21131-8 Sundry Receipts 130.68 1.73131-2 License fees and royalty payments 90.25 1.20131-6 Valuation fees 72.0 .96131-4 Survey fees 46.37 .61131-11 Estate surplus earnings 20.56 .27131-10 Sale of maps 12.42 .16131-5 Surveyor's registration 1.3 .02131-7 Valuer's registration .5 .01131-9 Objection fees .5 .01
Total 7,535.9 100.02
1/ Received from the Government/DLPP, based on the most recent informationavailable to DLPP.
Page 2
Anticioated Collections - 1988
4. At the 3rd quarter review ending September 30, 1988, it was reported thata total of K 8,944,100 has already been collected. This collection hasprompted the Department to adjust its revenue target to K 11,634,000 byDecember 31, 1988.
5. The collection for land lease rentals (annual rents, arrears, and rentsfor new leases) amounts to K 7,324,340 as at September 30, 1988 and isbroken down as follows:
Kina
Annual rent 4,783,949LLR arrears 2,149,500Rents on new leases 390.900
7 324 340
A further collection of K 2,475,660 to December 31, 1988 is projected forland lease rentals (LLR).
6. The overall anticipated revenue collections to December 31, 1988 areshown below:
Revised Actualto to
Revenue head Original 31.12.88 Z of 30.9.86& subhead Description K'000 K'000 revised K'000
* Includes collection of K 2,149,480 in LLR arears.
- 89 - AVNE 9
Page 3
Assumptions
7. The following figures are presented to come up with a realistic a&sump-tions of annual rent collections, LLR arrears collections and rentals fornew leases.
8. Annual rents due in 1988 2
K 8,735,700Annual rents collected as at 30.9.08 4.783.940
Remaining to be collected 3.951.760
Collection as at 30.9.88 4,783,940Anticipated rents collected by 31.12.88 1.594.646
Anticipated collection to 31.12.88 6.378.586
X collection of annual rent projected for 1988 6.378.5868,735,700
- 732
9. LLR arrears outstanding as at 30.9.88 8,086,100Plus LLR arrears collected in 1988 up 50 30.9 88 2.149.500
Total LLR Arrears 10.235.600
A further collection of K 716,500 to 31.12.88 is anticipated which willbring the arrears collection to K 2,866,000.
2 LLR arrears collection to 31.12.88 - 2.866.000
10,235,600
- 282
10. Annual rent collected as at 30.9.88 9,126,620Annual rent due in l9M estimated on 27.1.88 8.735.700
390.929
New leases collection as at 30.9.88 3 390,929Further collection to 31.12.88 - + 130.300
521.229
11. Annual rent collection to 31.1.2.88 6,378,586LLR arrears collection to 31.12.88 2,866,000Annual rent new leases to 31.12.88 521.229
9.765.845
21 As estimated oy DLPP on January 27, 1988.
- 90 - ANNEX 9
Page 4
12. Assumptions for land lease rentals for 1989-1-93. From 8 above, it canbe safely assumed that 752 of annual rents cat. be collectod annually.
13. The collection of LLR arrears can also be assumed at 302 per year asshown in 9.
14. It is estimated that new leases commands an annual leases rental of K 600per parcel.
Forecast of Revenue Collections 1989 to 1993
15. The land lease rental collections (annual rent, arrears and new leasesrents) are as shown in Table 1.
16. The overall revenue collections inclusive of subheads 1 to 12 are asshown in Table 2.
17. The details of the revenue revised estimates ̂or 1989 is as shown inTable 3.
Current Leases. Sale of Allotment & Other Administrative Fees
18. Parcels leased, annual rents and arrears print out as at 11.10.88 hasbeen used in the assumptions of land lease rentals collection and areshown as Tables 4 and 5.
19. The proposed amendment to Section 57 of the Land Act,3/ which imposes6OZof the unimproved value of the land once passed upon by legislatiovwill have a dramatic reduction in the collection of sale of allotmentfees under subhead 131.3. Other administrative fees may graduallyincrease because more allotments are likely to be mobilized with theimplementation of the land mobilization programme.
3/ Please note no amendments have been approved by NEC or Parliament todate.
PAUPA NEW GUINEA
LAND MOBILIZATION PROJECT
Ferecast of Land Lease Rental CollectionsPYl TO PYS
Notet Sale of allotments on sub-head 131-3 has been reduced as at PY2 or1990 onwards on the assumption that Sec. 57 of the Land Act getsamended through legislation.
- 93 -ANNX -9Table 3
PAPUA NEW GUINEA
LAND MOBILIZATION PROJECT
Summary of Revenue Estimates :989
Head No. 131 Southern Northern Islands Highlands Total
SubheadLand lease rentals la 4,738 1,496 2,864 689 9,787.0
License fees and royalty payments 10 5 5 100 120.0
Sale of allotments 125 66 300 400 891
Survey fees 25 15.3 15.3 25 80.6
Surveyors registrations 1.4 - - - 1.4
Valuation fees 45 - - - 45
Valuers registrations 1 - - - 1
Sundry receipts 100 303 50 50 230.3
Objection fees 9 - - - 9
Sales of maps 1.5 1.i 1.5 4.0 8.5
Surplus earnings and rentals - 30.0 - 30.0
Lodgement fees 50 24.,. 24.0 6 104.0
TOTAL 5,106.0 1.638 3.290 1.274 11.308
la Comprised of 131-1-1 Annual rents)1-2 Arrears ) Please refer to Table 1.1-3 New rents )
1. Salary and other employee payments 5,274.000 5,630,300 4,228,3002. Travel end subsistence 646,000 413,700 347,4003. Utilities 689,000 551,800 571,6004. Materials and supply 572,000 425,900 451,9005. Plant and transport hire 753,000 503,600 532,0006. Special services 701,600 461,600 424,2007. Purchase of capital assets 1,173,000 2,113,000 1,340,1009. Other 511,600 458,200 342,70010. Emoluments (wages, overtime, others) 794,900 754,500
Gross Total 11.115,100 10,567,100 8,992,700
99. Appropriation-in-Aid 105,000 100,000 121.A
Net Total 11,315,100 10,467,100 8,870,800
"uater commencing A 8 4 h 19490 15M 9149% IIB /2Z 92 M .W /G O
b. Program budgeting structure In place Pep Steh d 1 * Pregr g_tor: t" ieun place PYO implr_nt or)
d. Lean Negotiati jEff ecttv.m n_) Mf)*. Doner Review (A-Annual Secondmry) (-A-) (-S-) (-A-) (-6-) (-A-) (-S-) (-A-) (-)* Eff ettve publciety progrea operating by PYI (…-...cru.t.---) ------------- ------- O rtion - ------------------- )
1.2 Profeional Standarda DOfinition A Rual. Controla. Rgiatrtio t; of titles,
stion of Registrar of title, created (Created) (---------- -------------- Stndarda Setting weIlIty Contr.l ------4evew of title regibtration preeduree PY. (v) (---Iplement--)
b. Survq- (--------------- ---- - ---- Standard Setting & Quality Control------ -- )Rvi cuetomary nd sorvey and dearcation mathod (Rerch) (Dir)
ce Yalustiona --------------------------- tStnderd- Setting A Reality Control---------. Physical planning ------------------------- Stndrds Setting A goality C oi-trol------ -
erdination of land umn urvey A evaluation (Deign) -Survey-----)ef land pot ntal(------Evluton --- )
-IUIC funtitoning by Pm2. --- Prep -- ) ---- Convn
13(aitel Works %Oa. Rgional office buildinga (6) completed by PY4. (-- 4 4mgn & RabauI--) --- me------)
Dow;ion A-4ge Raebal)(--Ls---Construction
b. Provinciel office buildings (6) compl-ted by PY4.Deign A tender (------- offices-- -- 2 off e-- offConstruct (--4 fice-- ---- 2 offt--- (---2 offtce.--)
c. NO office building complted by P2. (-Desgn Tender--) ---- onetruct---d Computer center completed by m. (--e9sign Teer--) __-Cotrut----*. Steff homue (90) completed by PS. -gn & Iabaul--- -) (------- roeines--)
2. Xn-r 1r040tte Idine
a.I FDP rnt ntured by PY1. (.b. Relocation of Rtgioal Offices io Mn . (Rabaul A PS) (-- -- )c Clearly defined land develo t and
administtive pollci are In place by Pm2. (----Policy Formulation--)d. Land Reform Studies completed
- rent detertinatien PYn. t rceh-- PD- rent coll etion ystem PYI. Reh--- P1)- btioal fr_emmork legislation for customery
land de ling and r gistration P. (Coneultant) (--Policy-)- lhtioal land legIsltion Icnotion Pm. _ ro (P.1)- review of role nd tructure f Land bard Pm.
*. Draft interim land legislation ie pr pered in PYn. -- craft--)*. Str _Itn d *dloIntrtien pree durnn *r
Introduced by PY1 (Iesign-)Iconsolidated land legislation is prepared bt Pm (-Design-)
hRevisd administrative procedures are introduced inepport of consolidated land legislation in PO, -- .gn--) pnpl_nt) l !e
t lprowd rent collection mechanim are introducedby PU. (>lnt)
J Improved land dieute settlent infrastructure . ,blhbed by P2. twcea tent) (Impl_nt)
Piirom Year _E .1/89 4/29 7/i11 1/90 4/4 M WM l/91 4/L1 2 19W 1/92 * 1/ */W 4/93 WMQuarter comencing 17870/ 81 WU1 W 1WW 11~711711rl8~i
2.2 Personnel Servicesa. Key DLPP staff positions fIled by PYI. -- cntmnt-)b St aff trIng initiative. implemented to support:
-ftpartment reorganization tTlt - tran-:-PiS i pl_nXftten on- A tr In---Interi, land leg-ilation tD) r)Deemtralization of alienated lend nadm. (- . -) S) ring * Dowel) (46) (56 (4) " SW R
-Custoamy land registration (Ongoi4ngr Devl) -Dep ((- ann-*-cnolidated land l.oislation (--Tratn-)
-Oenoing managnt training (*O , lv-)9i-Degoing technical training -Delop-) (--------------- rni
rll cteff qunlificationc end motivationIncreased by Ps. (-----------aStff d velopaant program esabished and impl_nted------ )
S-W 1.1xn. All d L nda.1 n, era. .8 Islands, 8.4 Highlanda. The us f sech percel of alienated land is
scertained through a land us survey by PY. (-------Survay------b. Thc potential of each parcel of vacant or under-
utilid al ;nated is detrmined (---E luation-----)c. Apprepriate allocation. forfeiture or release
action taken an these parceli. C-…--44obiliation---- … -)d. Land adainistration proeses_ on all provinces
are meeting the demand (---------Transaection proc ing------ --a. All balogW in aministration are cleared by PY3S ( ------- Adr bakloge------------------------)
a Dra namonia fraors l .eialtion for custoarlend dealig and regition io prepae d in PYO. (Cnoultent) (--Policy-) (Or) (- oulttn---) (Lea)
b. Customary lend legOlatin t nd in provincesby PVS(46.(6
C. Customary land mobi l iation program are supportedIn 2 provinces by PYS. t5)
d. Clan lnd group registration masts demando ev ) ------ ------------ ---Zmpem neton-_
iS D c ntr lia Impleentatiorn irat r ain^developed In PYO. (-Develop-)
b LanAd mnaemnt comittees operating in allprovinc by m. - --------------------------- Al Provlncee-- ---------
C. o rovincs n ard dntralied lienatedland aministration posers by PFY. (-EK) (4) () ()
d. Retructured land administration servicew *reoperating in 5 provinces by Pm. (-) (E6 ) (8 N 9 (-1)
6 i^dnd Rranurce Infeiena. Temporary computer room contructed. (Ten) (C-n)b Dant Verification Proj act is complted by PYI. (- t verification-)C. ONOU5S ie fully inst.l led and operational in HQ and
the province for allinted land by PYI. (----Inst ll d----) (- -------------------- Operstion-- ----- --d. Coputer hardars upgrade in PYI. (--Acquire---) (---Implent--)a. Land Informtion Policy Comittes established in PYI. --p---)(- - - --------- _Conve--- - -)-f Capture of Land u_s dat comlsted by Pm2. (-sign-) (----------ptur --------- )
PNM.IS supports customary lend registration ir.2 prvince by PYS. (------------)
h Torr Title Register Is Ietal led on PNOLI5by PmX. - this I conditional upon as*tudy). (Con) (-Develop) (-Ot ------- )i. Sptial ererncingoef parcels is introduced in mf. ) (lt-
J. Amended procedures to support consolidated landlegislatioJn devlopd on P92.5 by PYS. (------Ovlop------) (-------I- porational-------------)
k. LUIS te d led thre c eferencingof P948.15 and P928118 in PY4. ~~~~~~~~~~~~~~~~~~(Consul ten)(---mIe pt-
1. Linkag to I systems complet by PYS. (Conalten) (I.i_nt)
6.2 National Napping Sureeua Godetic neteork dJustment is comee_ncd In fY1. (---' extraction-----=
ge Compilation of 1:2-D,WO topgrphic mpa islnitiated by FYS (Systom Acquisition A Instal) (--Production-)
- 99 -ANNEX 12
PAPUA NWi GUINEA
LAND MOBILIZATION PROJECT
Documents in the Protect File
1. Appraisal Documents
1.1 Input-Output and Cost Tables for each DLPP Work Units1.2 Terms of Referen_;e for Technical Assistance1.3 Terms of Reference for Contract Staff for LIU and NMB1.4 Consultants file on Alienated Land Component1.5 Consultants file on Customary Land Component1.6 Consultants fiel on Land Information Component
3.1 Program Description3.2 Technical Assistance Requirements3.3 Decentralization Issues Paper3.4 Staff Development and Training Issues Paper3.5 PNG Land Information System, Issues Paper3.6 Land Dispute Settlement Issues Paper3.7 National Mapping Bureau Initiatives3.8 Physical Planning Issue Paper3.9 Memorandum of Understanding
4. Customary Land Issues
4.1 R. Noronha, A Report on a Proposal to Register Customary Land andOther Related Matters, January 31, 1985
4.2 J. Fingelton: Proposed National Frame Work and Legislation, 19884.3 R. Noronha: Back to Office Report, October 14, 19884.4 GOPNGs Chapter 45, Land Disputes Settlement Act
5. East Sepik (ES) Customary Land Registration
5.1 The Provincial Land ActThe Provincial Land Registration Act, Manual of Laws and Procedures
5.2 ES Provincial Land Regulation, 19875.3 ES Customary Land Registration Regulation, 19875.4 ES Draft Provincial Legislation, January 1987
6. Issues of Land Administration
6.1 Knetsch, Treblicock, Land Policy and Economic Development in PNG1981 Institute of National Affairs Discussion Paper No. 6, 1981
6.2 INA Public Seminar, Land Policy and Economic Development in PNG,June 10, 1981
GOVERNMENT OF PAPUA NEW GUINEAPolicy Formulation and Resource Management Mechanisms
