PUBLIC-PRIVATE PARTNERSHIPS IN LAND ADMINISTRATION Analytical and Operational Frameworks Urban, Disaster Risk Management, Resilience Land © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. 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ACKNOWLEDGEMENTS This report was led by Aanchal Anand (Task Team Leader and Land Administration Specialist, SURLN) with the core team of Charis Lypiridis (Co-Task Team Leader and Infrastructure Specialist, GSUOA), Gabriela Nunez (Operations Consultant, SURLN), and Kirti Devi (Operations Officer, IFC) under the strategic guidance of Wael Zakout (Senior Technical Advisor and Global Lead for Land), Jorge Muñoz (Practice Manager, SURLN), and Sameh Wahba (Global Director, Global Practice for Urban, Resilience, and Land (GPURL). The report was peer reviewed by Klaus Deininger (Lead Economist, DECSI), Jonathan Mills Lindsay (Lead Counsel, LEGEN), Roland White (Lead Urban Specialist, SURDR), Enrique Pantoja (Operations Adviser, OPSIL), and Lorena Meco (Infrastructure Consultant, PPIAF). The report benefited from the participation and input of the following Bank team members: Anna Wellenstein (Regional Director, SLCDR), Maitreyi B. Das (Practice Manager, SURGP), Jemima T. Sy (Program Manager, IPGPF), Firas Raad (Country Manager, Malaysia), Yasser El-Gammal (Country Manager, Rwanda), Mika Torhonen (Lead Land Administration Specialist, SURLN), Victoria Stanley (Senior Land Administration Specialist, SURLN), Anna Corsi (Senior Land Administration Specialist, SURLN), Olivera Jordanovic (Senior Land Administration Specialist, SURLN), Keith Bell (Senior Land Administration Specialist, SURLN), Juliet Pumpuni (Senior Infrastructure Specialist, GSUOA), Jukka- Pekka Strand (Senior Infrastructure Specialist, IPGFS), Goran Tinjic (Senior Operations Officer, ECCWB), Alvaro Federico Barra (Land Administration Specialist, SURLN), Sarah Antos (Data Scientist), Ana Maria Arenas (Graphic Design Consultant), Luciana Drummond (Consultant, IPGPF), Shahrul Natasha Binti Halid Lnu (Consultant, EEAG1), Caleb Johnson (Consultant, SURLN), Rodica Tomescu (Consultant, SURGP), Minisha Deepu (Program Assistant, EACMA), Helena Nejedla (Team Assistant, ECCWB), and Alice Umuhoza (Team Assistant, AFMRW). The work received feedback from 100+ participations during three Global Consultations in Dubai, Kuala Lumpur, and Vienna. These consultations were organized with the support of the Dubai Land Department, WBG Global Knowledge and Research Hub in Malaysia, and the World Bank Country Office in Vienna respectively. The report was also reviewed by the Millennium Challenge Corporation and the team is grateful to Jill Pike, Stephan Gaull, Stevan Dibrilovic and others for their comments. The work for the report was generously funded by two Trust Funds. • The Global Partnership for Results-Based Approaches (GPRBA), a multi-donor trust fund that provides innovative financing solutions that link funding to achieved results. GPRBA’s results-based financing (RBF) approaches provide access to basic services like water and sanitation, energy, health and education for low-income families and communities that might otherwise go unserved. GPRBA funding was provided through International Finance’s Corporation funding allocation to GPRBA. For more information, visit www.gprba.org • The Public-Private Infrastructure Advisory Facility (PPIAF), a multi-donor trust fund housed in the World Bank, which provides technical assistance to governments in developing countries. Its main goal is to create enabling environments through high-impact partnerships that facilitate private investment in infrastructure. For more information, visit www.ppiaf.org An earlier version of this report was prepared by Planet Partnerships, LLC and Land Equity International. ABBREVIATIONS BOO Build-Own-Operate BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer BTO Build-Transfer-Operate CAPEX Capital Expenditure CBA Cost Benefit Analysis CoFLAS Costing and Financing Land Administration Services CVA Concept Viability Analysis DBFO Design-Build-Finance-Operate DBFOM Design-Build-Finance-Operate-Maintain DBFOT Design-Build-Finance-Operate-Transfer (Construction) DCMF Design-Construct-Manage-Finance EBRD European Bank for Reconstruction and Development ESCAP United Nations Economic and Social Commission for Asia and the Pacific IDB Inter-American Development Bank LA Land Administration LAS Land Administration System LDO Lease-Develop-Operate LGAF Land Governance Assessment Framework LIC Low-Income Country LIS Land Information System MCC Millennium Challenge Corporation MFD Maximizing Finance for Development MIC Middle-Income Country NPV Net Present Value NSW New South Wales O&M Operations and Maintenance OPEX Operational Expenditure PFI Private Finance Initiative PPP Public-Private Partnerships PSC Public Sector Comparator PSP Private Sector Participation RA Readiness Assessment RBA Results-Based Aid RBF Results-Based Financing ROI Return on Investment ROT Rehabilitate-Operate-Transfer SDG Sustainable Development Goals SPV Special Purpose Vehicle USP Unsolicited Proposal VfM Value-for-Money WBG World Bank Group All dollar amounts are U.S. dollars unless otherwise indicated. TABLE OF CONTENTS Executive Summary 6 Part I. Analytical Framework 18 Part II. Operational Framework 63 Part III. Risk Reference Matrix 145 Part IV. Governance Guidance Matrix 157 EXECUTIVE SUMMARY of PPPs in and Adinistration 7 EXECUTIVE SUMMARY Introduction Land administration1 is critical to economic growth and sustainable development. Secure property rights and effective land administration systems are the cornerstone of any modern economy. They give confidence to individuals and businesses to: (a) invest in land, (b) allow private companies to borrow, using land as collateral, and (c) enable governments to collect land-based taxes and fees, which are necessary to finance the provision of infrastructure and services to citizens. An effective and efficient land administration system also supports the development of infrastructure projects, by clarifying land ownership, supporting project planning, and mitigating delays and disputes, among other benefits. Investing in land administration, therefore, can improve the delivery of land-related services and unlock land both as a factor of production and as an input in infrastructure value chains. The centrality of land administration is further heightened when considering that a majority of the world’s population does not have legally registered rights to their land and homes, making affordable and accessible land administration services instrumental to ending poverty, fostering inclusive growth, and enabling broader socioeconomic stability. Despite the importance of land administration in the economy, traditional public sector procurement has generally been weak and takes longer to implement than planned, particularly in projects encompassing first registration and/or the development of land information systems. Given that some EXECUTIVE SUMMARY land administration services, such as registration, have certain public goods aspects,2 they may be better suited to public sector provisioning. However, other land administration services, such as field surveys, land information system development, e-services, and others, can benefit from private sector of PPPs in and Adinistration participation to introduce efficiencies and reduce costs of service delivery. As a result, public-private partnerships3 (PPPs) have generated significant interest as a way of modernizing land administration systems while avoiding some of the pitfalls of traditional procurement methods and supporting the ultimate goal of improving land administration systems and services. The PPP modality has been implemented in several high-income countries, though previous examples of PPPs in land administration in low- and middle-income countries have been limited. This growing interest in land administration PPPs in these countries is a result of both government-led scoping initiatives and unsolicited proposals made by the private sector. In this context, the World Bank found that there was neither a common understanding of what constitutes successful land PPPs nor a systematic approach to help scope and consider this option. This report Public-Private