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PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.: AB6784
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Project Name Second Land Administration and Management Project - Additional
Financing (LAMP2-AF)
EAST ASIA AND PACIFIC Region
Country
Sector(s)
Philippines
Central government administration (65%);Sub-national government administration (30%);Tertiary education (5%)
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Lending Instrument
Project ID
Parent Project ID
Borrower(s)
Implementing Agency
Environmental Category
Specific Investment Loan
P127962
P073206
Republic of the Philippines
Department of Environment and Natural Resources (DENR)
B-Partial Assessment
Date PID Prepared/Updated 28-Mar-2013
18-Dec-2012 Estimated Date of Appraisal
Completion
Estimated Date of Board
Approval
Decision
May 16, 2013
Project authorized to proceed to negotiations upon receipt of
Government-required negotiations documents.
I. Project Context
Country Context
Land is the most fundamental of all natural resources, and in the Philippines, land availability especially for development, agriculture and urban settlement is scarce. Although the
Philippines has a significant land mass of around 30 million hectares, it actually has less than
15% of this land mass suitable for development and habitation. Slightly less than half of the land mass, at 47% (14 million hectares), are considered to be alienable and disposable (A&D) lands
1
, but due to a range of factors, much of this land is disaster prone (due to floods, landslides, earthquakes and excessive slope among others), thereby reducing this to less than
15%, which can be considered used for habitation, agriculture and development. By 2020, the
1 The Philippines’ 1987 Constitution and Commonwealth Act 141 stipulate that lands of the public domain are classified into: (a) agricultural; (b) forest or timber; (c) mineral; and (d) national parks. All lands of the public domain are owned by the state. Only lands classified as agricultural are alienable and disposable (A&D), or those that can be owned privately by Filipino citizens.
A&D lands refer to those lands of the public domain which have been declared as not needed for public purposes. A&D lands are further classified according to their use and purpose as: (a) agricultural; (b) residential, commercial, industrial or for similar productive purposes; (c) educational, charitable or other similar purposes; and (d) reservations for town site and for public or quasi-public purposes.

Philippines population is expected to exceed 200 million, increasing pressure on scarce land.
More than half of the land mass, at 52% (15.9 million hectares), is classified as forestlands.
These lands are not A&D. Some 2.7 million hectares of total classified forestlands have been either established or considered as protected areas making up a total of 238 protected areas. Of the 15.9 million hectares of forestland, only 6.343 million hectares (41%) were still forested in
2003, a significant decline from the 17 million hectares recorded in the 1930s. Recent analysis using 2007 satellite imagery indicates that only around 19% of the country’s total land mass remains as forested.
In order for the Philippines to address the broader challenges for land and natural resources management, three fundamental elements must be addressed:
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Who owns what land parcel?
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Where is each land parcel and where are the boundaries?
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How is each land parcel currently being used versus what is the designated (approved) use of the land parcel?
Furthermore, the condition and cover of the land may also be important.
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II. Sectoral and institutional Context
The Bank’s land sector activities will continue to support the Country Assistance Strategy
(CAS) Strategic Objective 2 on improving the Philippines investment climate. The key lending activities under LAMP2 and its Additional Financing are also identified as priority activities under the Philippine Development Plan (PDP) 2011-16 and would contribute to the strategic goal of improved conservation, protection and rehabilitation of environment and natural resources, through the strengthening of the management of land resources information and cadastral information for improved land administration services and revenue collection. Key challenges identified under the CAS include:
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Private sector development is impeded by the constrictive policy and regulatory environment for land administration and management.
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Land and natural resources are often the subject of conflict, especially in conflict-affected areas.
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Disaster risk reduction concerning most vulnerable groups who are informally occupying marginal lands.
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Governance issues and corruption related to land.
There is currently limited support from other donors to the Philippines land sector.
The institutional context for the land sector in the Philippines is complex:
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The Land Management Bureau (LMB) under the DENR is responsible for public lands and the regulation of land surveying.
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The National Mapping and Resource Information Authority (NAMRIA), under
DENR, surveys and maps the land and water resources of the Philippines and is the lead agency for the National Spatial Data Infrastructure (NSDI) and leads national mapping.

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The Land Registration Authority (LRA) under the Department of Justice (DOJ) is responsible for all land registration of freehold (private) land, including land that is first alienated from the state (patents) and land allocated under Comprehensive Agrarian
Reform Program (CARP).
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The Bureau of Local Government Finance (BLGF), under the Department of Finance
(DOF) is responsible for valuation and real property tax.
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The Department of Agrarian Reform (DAR) is responsible for CARP.
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The Forest Management Bureau, under DENR, is responsible for the management of forestry lands
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The Mines and Geosciences Bureau, under DENR, is responsible for the regulation of mining including the administration and registration of mining tenements.
The country’s land records are held by DENR under LMB and the regional DENR Land
Management Services (LMS) offices. These land records pertain to documents for state lands as well as A&D lands up until the time of first registration. Once alienated, the responsibility for administration of land parcels is with LRA. The LRA maintains a land titles records management system for registered lands from the time of first registration and all subsequent transfers of lands, including inheritance, leases and mortgages. As such, the DENR’s and
LRA’s records management systems complement and do not duplicate each other. Over the past several years, the LRA has almost fully completed its computerization of land records to
“disaster-proof” the title records and to modernize land titling service delivery. DENR’s computerized system for managing the public land records was developed and tested under the ongoing Bank-funded LAMP2 and is called the Land Administration and Management System
(LAMS). The records include cadastral surveying plans, subdivision surveys and maps as well as information for land administration and management.
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III. Project Development Objectives
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The project development objective is to improve the land administration, valuation and real property taxation systems.
IV. Project Description
The original project (LAMP2) has five components. The proposed Additional Financing focuses on three of the five components and would include the following activities: a. Component 3: Tenure Security (Land Information and Administration) . This component will: (a) modernize the management of land records; (b) provide cost effective access to land information; (c) improve the delivery of land related services; and (d) provide support to Local Government Units for revenue generation and land use and development planning. This component will also support new land administration and management related policy and capacity-building activities. b. Component 4: Property Valuation and Taxation . This component will: (a) mainstream the improved systems and methodologies for property valuation and taxation; (b) sustain the reforms through policy and legislative action and institutional strengthening; and (c) broaden the foundations for valuation education and professional development.

c. Component 5: Project Management . This component will: (a) continue the effective project management and coordination between implementing agencies under the LAMP2; (b) provide overall planning, monitoring and evaluation; (c) continue supporting the project’s
National Steering Committee; and (d) support the operationalization of the Land Sector
Development Framework and the development of the government’s future investment direction on the land sector.
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V. Financing (in USD Million)
For Loans/Credits/Others
Borrower
International Bank for Reconstruction and Development
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Total
VI. Implementation
Amount (US$m)
63.84
2.37
61.47
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There are no changes to project implementation arrangements. The Project Operations
Manual has been updated to cover the activities that are to be scaled-up under LAMP2-AF.
The Manual has also been updated to enhance supervision and oversight arrangements and to include more systematic and efficient monitoring and evaluation and reporting practices.
VII. Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project
Environmental Assessment OP/BP 4.01
Natural Habitats OP/BP 4.04
Forests OP/BP 4.36
Pest Management OP 4.09
Physical Cultural Resources OP/BP 4.11
Indigenous Peoples OP/BP 4.10
Involuntary Resettlement OP/BP 4.12
Safety of Dams OP/BP 4.37
Yes
X
X
X
No
X
X
X
X
X
Projects on International Waterways OP/BP 7.50
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Projects in Disputed Areas OP/BP 7.60
X
X

VIII. Contact point
World Bank
Contact: Keith Clifford Bell
Title: Senior Land Policy Specialist
Tel: (202) 458-1889
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Email: kbell@worldbank.org
Borrower/Client/Recipient
Name: Department of Finance
Contact: Hon. Cesar V. Purisima
Title: Secretary
Tel: (63-2) 523-9215
Email: cpurisima@dof.gov.ph
Implementing Agencies
Name: Department of Environment and Natural Resources (DENR)
Contact: Atty. Analiza Rebuelta-Teh
Title:
Tel:
Undersecretary and Chief of Staff
(63-2) 925-8277
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Email: Tehanna17@yahoo.com
IX. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop