Public Disclosure Authorized ETHIOPIA Public Disclosure Authorized Review of the Legal Cadastre of the Government of Ethiopia Public Disclosure Authorized ISSUES & POLICY RECOMMENDATIONS REPORT November 2016 Public Disclosure Authorized Issues and Policy Recommendations Report Review of the Urban Legal Cadastre of the Government of Ethiopia Issues and Policy Recommendations Report DOCUMENT CONTROL Date Version # Author Checked by Details 18 July 2016 1 Tony Burns Kate Fairlie Draft report provided to World Bank for review 9 September 2 Tony Burns Kate Fairlie Revised draft report provided to Ministry and World 2016 Bank for circulation prior to stakeholder workshop 9 October 3 Tony Burns Kate Fairlie First version of report revised in response to 2016 stakeholder feedback and information gathered in mission 26 September to 7 October 2016 and discussions with MoUDH. 10 November 4 Tony Burns Kate Fairlie Report revised upon receipt of comments from World 2016 Bank i Review of the Urban Legal Cadastre of the Government of Ethiopia Issues and Policy Recommendations Report TABLE OF CONTENTS ANNEXES ....................................................................................................................................... III TABLE OF ACRONYMS................................................................................................................. IV EXECUTIVE SUMMARY................................................................................................................ VII 1 INTRODUCTION ..................................................................................................................... 1 2 STRATEGIC CONTEXT: THE GTP II ..................................................................................... 2 2.1 URBAN MAP PRODUCTION, SURVEYING AND LAND USE RIGHT REGISTRATION PROGRAM ................. 3 2.2 PROGRAM BUDGET ........................................................................................................................ 4 2.3 ANALYSIS OF CADASTRAL AIMS UNDER REVISED GTP II ................................................................... 5 3 LAND ADMINISTRATION REFORM AND THE CURRENT SITUATION IN ETHIOPIA ........ 6 4 LEGAL CADASTRE: DESCRIPTION AND RATIONALE..................................................... 10 4.1 LESSONS FROM PAST ATTEMPTS AT LAND REGISTRATION AND LAND INFORMATION SYSTEMS ........... 10 4.2 THE URBAN LAND DEVELOPMENT AND MANAGEMENT POLICY AND STRATEGY ............................... 10 4.3 THE SYSTEMATIC ADJUDICATION AND REGISTRATION PROCESS ...................................................... 11 4.4 KEY FEATURES OF THE SYSTEMATIC ADJUDICATION AND REGISTRATION PROCESS .......................... 13 4.5 OBSERVATIONS ABOUT THE LEGAL CADASTRE ............................................................................... 13 5 ASSESSMENT OF CURRENT PILOTS UNDERWAY .......................................................... 17 5.1 MOUDH SUPPORT FOR PILOTS ..................................................................................................... 17 5.2 PROGRESS, ACHIEVEMENTS AND CHALLENGES IN THE ADDIS ABABA PILOT ..................................... 17 5.3 PROGRESS, ACHIEVEMENTS AND CHALLENGES IN THE 23 CITIES PILOTS ......................................... 19 5.4 KEY OBSERVATIONS FROM THE SITE VISITS ................................................................................... 20 5.5 GOOD PRACTICES FROM INTERNATIONAL EXPERIENCE .................................................................. 25 6 LEGAL REVIEW ................................................................................................................... 30 6.1 LEGAL FRAMEWORK ..................................................................................................................... 30 6.2 CHALLENGES IN IMPLEMENTING THE EXISTING LEGAL FRAMEWORK. ............................................... 31 6.3 MAIN LEGAL/PROCEDURAL CONSTRAINTS TO IMPLEMENT CADASTRES ............................................ 33 6.4 ISSUES OR GAPS IN THE LEGAL FRAMEWORK ................................................................................. 35 7 INSTITUTIONAL ASSESSMENT .......................................................................................... 37 7.1 AGENCIES ROLES AND RESPONSIBILITIES FOR CREATING OR MAINTAINING LAND REGISTRIES ........... 37 7.2 ROLE AND RESPONSIBILITIES OF THE MINISTRY OF URBAN DEVELOPMENT AND HOUSING ............... 38 7.3 ROLE AND RESPONSIBILITIES OF REGIONAL GOVERNMENTS .......................................................... 38 7.4 ROLES AND RESPONSIBILITIES OF CITIES ...................................................................................... 38 7.5 FUNDAMENTAL DECISIONS RELATING TO RESOURCING ................................................................... 39 7.6 STRUCTURE ................................................................................................................................ 39 ii Review of the Urban Legal Cadastre of the Government of Ethiopia Issues and Policy Recommendations Report 7.7 STAFFING .................................................................................................................................... 41 7.8 FACILITIES ................................................................................................................................... 44 7.9 OPERATING THE LEGAL CADASTRE UNDER A SELF-FINANCING ARRANGEMENT ................................ 45 7.10 EXPECTED REVENUE .................................................................................................................... 45 7.11 EXPECTED ANNUAL OPERATING COSTS ......................................................................................... 48 7.12 IDENTIFYING AND MEASURING THE CAPACITY BUILDING NEEDS AND OUTPUTS ................................. 49 7.13 REVIEW OF THE MANAGEMENT CONTRACT ................................................................................... 50 8 MAINTENANCE AND UPDATE OF THE LEGAL CADASTRE ............................................ 52 9 ICT REVIEW .......................................................................................................................... 53 9.1 ICT SYSTEMS REVIEWED IN JUNE 2016 ......................................................................................... 53 9.2 CADASTRE AND REAL PROPERTY REGISTRATION SYSTEM (CRPRS) ............................................. 54 9.3 ADDIS ABABA CADASTRE INFORMATION SYSTEM (AA-CADIS) ...................................................... 56 9.4 SOFTWARE FOR SYSTEMATIC ADJUDICATION ................................................................................. 57 10 TENURE IN URBAN ETHIOPIA............................................................................................ 58 11 KEY ISSUES AND POLICY RECOMMENDATIONS ............................................................ 62 11.1 STRENGTHENING AND EXPANDING THE LEGAL CADASTRE IN ADDIS ABABA ..................................... 62 11.2 IMPLEMENTING SAR IN AN EFFICIENT AND PARTICIPATORY MANNER IN THE 23 CITIES ..................... 65 11.3 STRENGTHENING THE QUALITY OF SERVICES FROM THE LEGAL CADASTRE ..................................... 70 11.4 PROJECT MANAGEMENT, POLICY FORMULATION AND MONITORING AND EVALUATION ....................... 75 12 NEXT STEPS ........................................................................................................................ 80 13 REFERENCES ...................................................................................................................... 81 ANNEXES Annex 1 GTP II details for activities related to the legal cadastre Annex 2 Overview of past attempts at land registration and LIS Annex 3 Site visits to Oromia, Amhara, Tigray and SNNPR Annex 4 Organisational structures of MoUDH, Regional Administrations and Cities Annex 5 Estimated number of properties in Addis Ababa and the 23 Cities based on the 2007 Census Annex 6 Estimated number of properties per urban centre based on the 2007 Census (excl. Addis Ababa and the 23 Cities) Annex 7 Organisational Standards under TVET Annex 8 Doing Business – Registering Property in Ethiopia iii Review of the Urban Legal Cadastre of the Government of Ethiopia Issues and Policy Recommendations Report TABLE OF ACRONYMS 3D Three dimensions AALHRIA Addis Ababa Landholding Registration and Information Agency AA-CADIS Addis Ababa Cadastre Information System ADR Alternative dispute resolution ArcGIS ArcGIS is a geographic information system (GIS) supplied by ESRI (www.esri.com) AutoCAD AutoCAD is a commercial software application for 2D and 3D computer-aided design (CAD) and drafting BPR Business Process Re-engineering BSC Balanced Score Card CAD Computer-aided design CAMA Computer Assisted Mass Appraisal CoFLAS Costing and Financing Land Administration Services (GLTN tool) COFOPRI Commission for the Formalisation of Informal Property (Peru) CORS Continuously operating GNSS reference station CPTA Computerized Property Tax Administration CRPRS Cadastre and Real Property Registration System a.k.a. National Urban Cadastre System DC Domain Controller DFID Department for International Development (United Kingdom) DGPS Differential GNSS positioning system EC Ethiopian Calendar ECSPG Ethiopian Cities Sustainable Prosperity Goals EFY Ethiopian Financial Year ELADM Ethiopian Land Administration Domain Model EMA Ethiopian Mapping Agency FIULIPO Federal Integrated Land Information System Project Office FURPRIA Federal Urban Real