Chapter 3. Access to and Development of Public Land for Tourism Investment
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Document of THE WORLD BANK Public Disclosure Authorized Report No. 36520 ARAB REPUBLIC OF EGYPT EGYPT PUBLIC LAND MANAGEMENT STRATEGY Public Disclosure Authorized VOLUME II: BACKGROUND NOTES ON ACCESS TO PUBLIC LAND BY INVESTMENT SECTOR: INDUSTRY, TOURISM, AGRICULTURE, AND REAL ESTATE DEVELOPMENT DRAFT Public Disclosure Authorized June 15, 2006 Public Disclosure Authorized Finance, Private Sector and Infrastructure Group Middle East and North Africa Currency Equivalents (Exchange Rate Effective April 26, 2006) Currency Unit = LE (Egyptian Pound) LE 1 = US$ 0.17 US$ 1 = LE 5.751 Abbreviations and Acronyms ARA Agrarian Reform Authority EEAA Egyptian Environmental Affairs Agency ESA Egyptian Survey Authority GOE Government of Egypt GAFI General Authority for Free Zones and Investment GAID General Authority for Industrial Development GARPAD General Authority for Reconstruction Projects and Agricultural Development GOPP General Organization for Physical Planning HCSLM Higher Committee for State Land Management HCSLV Higher Committee for State Land Valuation ICA Investment Climate Assessment ITDP Integrated Tourism Development Project LTDP Limited Tourism Development Project MALR Ministry of Agriculture and Land Reclamation MHUUD Ministry of Housing, Utilities and Urban Development MIWR Ministry of Irrigation and Water Resources MODMP Ministry of Defense and Military Production MOT Ministry of Tourism NCPSLU National Center for Planning State Land Uses PDG Policy Development Group REDA Regional Economic Development Authority REPD Real Estate Publicity Department RETD Real Estate Tax Department SEZ Special Economic Zone SEZA Special Economic Zone Authority SLA State Land Authority SLM State Land Management TDA Tourism Development Authority WDSVDHC West Delta and South Valley Development Holding Company Vice President: Christiaan Poortman Country Director: Emmanuel Mbi Sector Director: Hossein Razavi Sector Manager: Hedi Larbi Task Team Leader: Stephen Karam Task Manager: Sameh Wahba Arabic Terms Amlak Amiriya/al Dawla Literally State Assets, means land in State or public-ownership Arady Bour Neglected or abandoned/uncultivated agricultural lands Arady Gheir Mokhassassa State land that has not (yet) been designated a land use and thus was not assigned to a controlling authority (i.e. within the State’s public domain) Arady Mokhassassa State land which has been designated a specific land use and assigned a controlling authority (i.e. could be State’s public or private domain) Ash’waiyat Literally haphazard or disorganized, refers to slums and informal and/or squatter settlements Cordon French word, refers in Arabic to the boundary of local government’s administrative jurisdiction El-Defaa El-Madani Civil Defense Department, under the Ministry of Interior, responsible for firefighting Feddan Unit of measurement of agricultural land, equal 4,200square meters Haiet El-Aamaliat Operations department, Ministry of Defense and Military Production Haiez Urban planning and development boundary Haq Intifaa Right of use/usufruct Hiyaza Adverse possession Jihaz Himayat Amlak Al Dawla State Asset Protection Agency, under the Governorates Kashf al mokalafat Real Estate Tax Department’s agricultural and urban land and property tax registry Mujama’ah Ashriya Consortium of large insurance companies that issues building insurance policy upon review by consultants of the construction drawings, within the building permit process Mulk horr Land in private ownership Naql Ossoul Transfer of assets Saha Tawqi’e Procedure undertaken in court to authenticate land/property transfer deeds, often used to confer some form of legality on informal transactions of land and property and perceived by some as a proxy to registration Saha wa Nafaz Low-cost procedure undertaken in court as a proxy to registration, in which the claimant upon purchasing land/property uses the transfer deed to dispute the right of the seller to the property in question, and which leads the court to examine the chain of ownership (lasts several years) Sejel ainee Parcel-based deed registration (system) or parcel-based deed register Shahr akary Real Estate Publicity (i.e. Land and Property) Registry Sejel shakhsee Person-based deed registration (system) or person-based deed register Takhssiss Literally allocation of land; refers to conditional transfer of land ownership subject to certain conditions (retaining the land use unchanged, paying price installments) Tanzim Building line Waqf (plural Awqaf) Trust/endowment, land held in trust for religious or charitable purposes, and administered by the Ministry of Awqaf Zimam Boundaries of cultivated and uncultivated agricultural lands that have been historically surveyed by the Egyptian Survey Authority and included in the Real Estate Tax Department’s land and property tax registry and which are subject to the agricultural land or property tax Table of Contents TABLE OF CONTENTS ......................................................................................................................................I LIST OF TABLES............................................................................................................................................. III LIST OF FIGURES........................................................................................................................................... III LIST OF BOXES ............................................................................................................................................... III CHAPTER 1. INTRODUCTION ........................................................................................................................ 1 CHAPTER 2. ACCESS TO AND DEVELOPMENT OF PUBLIC LAND FOR INDUSTRIAL INVESTMENT...................................................................................................................................................... 2 2.1 Access to public land for industrial development................................................................... 2 Options for Location, Incentives and Restrictions.................................................................. 2 Problems of Access to Land for New Investments or Expansion........................................... 6 Procedures of Access, Terms and Conditions......................................................................... 9 Ownership/Access Restrictions:............................................................................................ 15 The Establishment of General Authority for Industrial Development (GAID) .................... 23 2.2 Land Development Process .................................................................................................. 26 Obtaining a Building Permit ................................................................................................. 26 Obtaining Utility Connections .............................................................................................. 29 2.3 Conclusions and Recommendations..................................................................................... 30 Conclusions........................................................................................................................... 30 Recommendations................................................................................................................. 32 CHAPTER 3. ACCESS TO AND DEVELOPMENT OF PUBLIC LAND FOR TOURISM INVESTMENT.................................................................................................................................................... 34 3.1 Access to public land for tourism development ................................................................... 34 Institutional and Regulatory Framework Responsible for Tourism Development on Public Land outside Zimam ............................................................................................................. 34 Procedures, terms and conditions for Access to Public Land for Tourism Development outside of the Zimam ............................................................................................................ 43 Institutional and Regulatory Framework Responsible for Tourism Development on Public Land inside Zimam ............................................................................................................... 47 3.2 Land Development Process .................................................................................................. 49 Obtaining Building Permits .................................................................................................. 51 Obtaining Adequate Infrastructure Services ......................................................................... 51 3.3 Conclusions .......................................................................................................................... 51 CHAPTER 4. ACCESS TO AND DEVELOPMENT OF PUBLIC LAND FOR REAL ESTATE INVESTMENT.................................................................................................................................................... 53 4.1 Access to Public Land for Real Estate Development in Egypt ............................................ 53 Institutional and Regulatory Framework governing Access to Public Land for Real Estate Development outside Zimam/in New Urban Communities.................................................. 53 Procedures for Access to Public Land for Real Estate Development outside of the Zimam in New Urban Communities.....................................................................................................