World Bank Conference on Land & Poverty, 22 March 2017 Establishing a Legal Cadastre for Good Governance in Ethiopia Identifying bottlenecks and steps toward scale-up Kate Fairlie Authors: Tony Burns, Kate Fairlie, Andrew McDowell Land Equity International Yan Zhang, Gavin Adlington World Bank Imeru Tamrat, Gebeyehu Belay Independent. Solomon Kebede, Abebe Zelul Ministry of Urban Development & Housing Ethiopia: World Bank Conference on Land & Poverty, 22 March 2017

Overview Context Issues & Recommendations Overview Reform Potential Case Study: Service Provision Key take-aways: Overview of key limitations to scaling up systematic adjudication and registration (SAR) in urban Ethiopia Application of CoFLAS to determining staffing/office needs

Context WB Ethiopia Urbanization Review completed in 2015: Cities failing to meet demand for urban land and housing access Called for robust institutional framework > efficient/sustainable land management Urban growth of 5.4% pa > unprecedented demand MoUDH requested assistance > WB Non-Lending TA Project Being implemented in phases over 2 years Initial focus on the pillars of urban land and housing LEI contracted to review the legal cadastres May 2016 – March 2017 Evaluate current legal cadastre pilot projects Help prepare a plan for nationwide roll-out

Context: GTPII Ethiopia’s Second Growth and Transformation Plan (GTPII) Main planning instrument for 2015/16-2019/20 Strategic context for the urban legal cadastre Requires land to achieve, undermined by ltd legal cadastre. Ethiopian Cities Sustainable Prosperity Goals (ECSPG) Includes projects to adjudicate 200,000 land parcels and register 150,000 parcels across 23 cities (Year 1 only!) Establish new land offices, extensive training, implement ICT system.

Context: MoUDH evaluation in most municipalities property records were kept mostly in a paper format (sometims supported by a textual database and GIS or CAD software no consistent format for manual records and/or database or GIS/CAD lack of trained staff able to use the systems processes to update the manual and computer records inconsistent and staff had significant discretion in creating, altering or even removing files. Doing Business: 141 out of 189 countries (paper-based)

Issues & Recommendations Overview Issues and recommendations identified across 4 core themes: Addis Ababa: Strengthening and expanding the legal cadastre 23 Cities: Implementing SAR in an efficient and participatory manner Strengthening the quality of services from the urban legal cadastre Project management, policy formulation and M&E

Eg. 1 & 2: Addis Ababa and the 23 cities Key Issue: Support for Addis Ababa + a scaleable process Addis Ababa progressing but has a serious backlog File management an issue in all cities Problems with infrastructure to support LIS Currently no scaleable, efficient process for SAR No comprehensive standard operating procedures Separation of rights creation and registration activities causes delays. Complicated legal framework Unclear how many landholdings remain unregularised Delays in collecting application, data input >> public awareness It is important to design and implement a small number of pilots and capture lessons, to develop a robust and scaleable process.

2. Implementing SAR in the 23 Cities

Reform Potential

Reform Potential

Case study: Service Provision Prime responsibility for implementation lies with Cities Populations are not large: Addis Ababa ~ 935,000 properties 6 cities ~ < 50,000 properties 17 cities ~<20,000 properties 47 cities ~<10,000 properties This has implications for number of offices, typology of offices, staffing and training. CoFLAS was developed to support the estimation of staffing and office needs and costs.

Case study: Service Provision Staff needed to both create and maintain the legal cadastre. To create: Estimate 50 properties/person-month based on other country experiences. 4.3 mil. Properties total =~ 86,000 person-months Most staff can be contracted, so over 5-10 years, 800-1,600 full time staff

Case study: Service Provision To maintain the legal cadastre: Number of staff in the office High Level of Staffing/Office Medium Level of Staffing per Office Low level of staffing per office Number of management/ administration/other non-technical staff relative to total registration and survey/ cadastre staff About the same as the number of registration and survey/cadastre staff About half the number of registration and survey/cadastre staff About 10% of the number of registration and survey/cadastre staff Registration staff per 100,000 properties covered by the office Manual records, complicated registration process, limited role for private sector Efficient registration process, possibly computerised, limited role for private sector Computerised records, efficient registration process, substantial role for private sector 10 5 3 Survey/cadastre per 100,000 properties covered by the office Survey/cadastre not automated, limited role for private sector Survey/cadastre automated, limited role for private sector Survey/cadastre automated, limited role by government LAS services provided without cadastre

Case study: Service Provision To maintain the legal cadastre:

Case Study: Service Provision Paper additionally goes through: Office typologies for offices covering 100k, 50k, 20k, 10k and 5k properties Determining self-financing arrangements Conclusion: Annual office operating costs for 100,000 properties: 5-10 million birr Projected annual revenue for the same office: 2-200 million birr (wide range reflects assumptions on annual property value, annual turnover rate, charges) Hence legal cadastre should be self-financing with transfer fees 0.5-1% of property value.

Conclusion A review of the Ethiopia legal cadastre pilots/context to date was undertaken 2016-2017 Existing plans (GTPII) very ambitious, significant work needed to successfully scale, but foundations in place. Strong political will and many actions being taken. Review shows staffing/training/office needs significantly overestimated. Significant opportunity for offices to be self-financing. Next steps: we have designed a project for Ethiopian government to review and implement (as a whole, or components.) Management contract success will greatly assist.