the world bankdocuments.worldbank.org/curated/en/...jacqueline beatriz veloz lockward team member...

Document of

The World Bank

FOR OFFICIAL USE ONLY Report No: PAD2598

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT US$50 MILLION

TO THE

REPUBLIC OF NICARAGUA

FOR THE

NICARAGUA PROPERTY RIGHTS STRENGTHENING PROJECT (P163531)

February 22, 2018

Social, Urban, Rural And Resilience Global Practice

Latin America And Caribbean Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective February 1, 2018)

Currency Unit = Cordoba

C 31.12 = US$1

US$1.45 = SDR 1

FISCAL YEAR

January 1 - December 31

Regional Vice President: Jorge Familiar

Country Director: Yaye Seynabou Sakho

Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez

Practice Manager: Jorge A. Munoz

Task Team Leader(s): Stamatis Kotouzas, Enrique Pantoja

ABBREVIATIONS AND ACRONYMS

CER CERC CIP

Contingent Emergency Response Contingent Emergency Response Component Comité Interinstitucional del Proyecto (Project Inter-Institutional Committee)

CPF CPS

Country Partnership Framework Country Partnership Strategy

CORS CTO

Continuously Operating Reference Stations Comité Técnico Operativo (Project Operational Technical Committee)

CSJ Corte Suprema de Justicia (Nicaraguan Supreme Court of Justice) DFIL DIRAC DNR EA EIRR EMP ESSAF FAO GDP GPS

Disbursement and Financial Information Letter Dirección de Resolución Alternativa de Conflictos (Nicaraguan Directorate for Alternative Conflict Resolution under CSJ) Direccion Nacional de Registros (National Directorate of Registries) Environmental Assessment Economic Internal Rate of Return Environmental Management Plan Environmental and Social Screening and Assessment Framework Food and Agriculture Organization Gross Domestic Product Global Positioning System

GRM GRS IDA IEG IFR

Grievance Redress Mechanism Grievance Redress Service International Development Association Independent Evaluation Group Interim Financial Report

INIFOM Instituto Nicaragüense de Fomento Municipal (Nicaraguan Institute of Municipal Development)

INETER INIDE

Instituto Nicaragüense de Estudios Territoriales (Nicaraguan Institute for Territorial Studies) Instituto Nacional de Información de Desarrollo (National Institute for Development Information)

IP Intendencia de la Propiedad (Nicaraguan Property Intendancy under PGR) IPF IRM

Investment Project Financing Immediate Response Mechanism

IRR MARENA

Internal Rate of Return Ministerio del Ambiente y Recursos Naturales (Nicaraguan Ministry of Environment and Natural Resources)

M&E Monitoring and Evaluation MHCP

Ministerio de Hacienda y Crédito Público (Nicaraguan Ministry of Finance and Public Credit)

PA PCU

Protected Area Project Coordination Unit

PDO Project Development Objective PGR Procuraduría General de la República (Nicaraguan Attorney General’s Office) PNDH PPSD POM

Plan Nacional de Desarrollo Humano (National Plan for Human Development) Project Procurement Strategy for Development Project Operations Manual

PRODEP SA SCD

Proyecto de Ordenamiento de la Propiedad (Land Administration Project) Social Assessment Systematic Country Diagnostic

SDI SIAFI

Spatial Data Infrastructure Sistema Integrado de Administración y Finanzas (Integrated Administrative and Financial System)

SIC Sistema de Información Catastral (Cadastre Information System) SIGFA Sistema Integrado de Gestión Financiera y Auditoría (Nicaraguan Integrated Financial

Management and Auditing System) SIICAR Sistema Integrado de Información de Catastro y Registro (Integrated Cadastre-

Registry Information System) SIIPRO Sistema Integrado de Información de la Propiedad (Property Information System) SILEC SISCAT

Sistema de Información Legal y Catastral (Legal and Cadastral Information System) Sistema de Registro Catastral (Municipal Cadastre System)

SIT Sistema de Información Territorial (Territorial Information System) SMEI Sistema de Monitoreo y Evaluación de Impacto (Monitoring and Impact Evaluation

System) SOE STEP

Environmental and Social Screening and Assessment Framework World Bank’s Systematic Tracking and Exchanges in Procurement System

The World Bank Nicaragua Property Rights Strengthening Project (P163531)

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BASIC INFORMATION

Is this a regionally tagged project? Country(ies) Financing Instrument

No

Investment Project Financing

[ ] Situations of Urgent Need of Assistance or Capacity Constraints

[ ] Financial Intermediaries

[ ] Series of Projects

Approval Date Closing Date Environmental Assessment Category

15-Mar-2018 15-Mar-2024 B - Partial Assessment

Bank/IFC Collaboration

No

Proposed Development Objective(s) The Project Development Objective (PDO) is to provide beneficiaries in selected municipalities with: (a) updated and integrated cadastral and property registry information; and (b) improved land administration services.

Components

Component Name Cost (US$, millions)

Institutional and Policy Framework and System Integration 18.75

Cadastre, Regularization and Titling Services 25.67

Municipal Land Administration Services 2.64

Project Management, Monitoring and Evaluation 2.94

Contingent Emergency Response Component (CERC) 0.00


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Organizations Borrower :

Republic of Nicaragua

Implementing Agency : Nicaragua Attorney General's Office

PROJECT FINANCING DATA (US$, Millions)

[ ] Counterpart Funding

[ ] IBRD [ ✔ ] IDA Credit

[ ] IDA Grant

[ ] Trust Funds

[ ] Parallel Financing

FIN_COST_OLD

Total Project Cost: Total Financing: Financing Gap:

50.00 50.00 0.00

Of Which Bank Financing (IBRD/IDA):

50.00

Financing (in US$, millions)

FIN_SUMM_OLD

Financing Source Amount

IDA-61980 50.00

Total 50.00

Expected Disbursements (in US$, millions)

Fiscal Year 2018 2019 2020 2021 2022 2023 2024

Annual 0.11 2.82 4.53 7.81 10.91 12.33 11.49

Cumulative 0.11 2.93 7.46 15.27 26.18 38.51 50.00


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INSTITUTIONAL DATA

Practice Area (Lead)

Social, Urban, Rural and Resilience Global Practice

Contributing Practice Areas

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance Moderate

2. Macroeconomic Moderate

3. Sector Strategies and Policies Moderate

4. Technical Design of Project or Program Low

5. Institutional Capacity for Implementation and Sustainability Moderate

6. Fiduciary Moderate

7. Environment and Social Moderate

8. Stakeholders Moderate


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9. Other

10. Overall Moderate

COMPLIANCE

Policy

Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✔] No

Does the project require any waivers of Bank policies?

[ ] Yes [✔] No

Safeguard Policies Triggered by the Project Yes No

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 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants

Sections and Description Schedule 2, Section I.A.1. Establishment of the Project Coordination Unit (PCU) - The Recipient shall operate and

maintain, at all times during Project implementation, the PCU, the Inter-institutional Committee (CIP) and the

Operational Technical Committee (CTO) with a structure, functions, responsibilities and adequate resources, all

satisfactory to the Association. The Recipient shall ensure that the PCU shall include, as its core staff, a general

coordinator and a technical coordinator, a procurement specialist, a financial management specialist, a monitoring

and evaluation (M&E) specialist, a social/gender specialist, an environmental specialist and a communication

specialist, all with terms of reference, qualifications and experience acceptable to the Association.


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Sections and Description Schedule 2, Section I.B.2. Prior to the carrying out of any Project activity under Parts 2 and 3 of the Project in any

given Selected Municipality, the Recipient, through PGR, shall enter into an agreement (“Participation

Agreement”) with each such municipality, in coordination with the Nicaraguan Institute of Municipal Development

(INIFOM), under terms and conditions satisfactory to the Association, to address the roles of the Selected

Municipalities within the Recipient’s land administration system, as further described in the Project's Operations

Manual (POM).

Sections and Description Schedule 2, Section I.C.1. Safeguards Instruments. The Recipient, through PGR, shall carry out the Project in

accordance with the provisions of the Environmental Assessment (EA), the Environmental Management Plan

(EMP), and the Process Framework, as applicable. The Recipient, through the PGR, shall not assign, amend,

abrogate, or waive the EA, the EMP, the Process Framework, or any provision thereof, without prior approval of

the Association.

Sections and Description Schedule 2, Section I.C.2. The Recipient shall refrain from granting or considering any claims for lands within or

adjacent to Protected Areas, unless said Protected Areas have been physically demarcated in a manner

satisfactory to the Association.

Sections and Description Schedule 2, Section IV.1. The Recipient, through PGR, shall: (a) have all the procurement records and

documentation of the Project audited each calendar year during Project implementation, in accordance with

appropriate procurement audit principles, by independent auditors acceptable to the Association; (b) furnish to

the Association as soon as available, but no later than six months after the end of each calendar year, the

procurement audit report of such audit by said auditors of such scope and in such detail as the Association shall

reasonably request; and (c) furnish to the Association such other information concerning said procurement

records and documentation and the procurement review thereof as the Association shall from time to time

reasonably request.

Conditions

Type Description Effectiveness The Additional Conditions of Effectiveness consists of, namely, that the Co-

execution Agreements have been executed by PGR on behalf of the Recipient and: (i) the Supreme Court [for the National Directorate of Registries (DNR) and the Directorate for Alternative Conflict Resolution (DIRAC)]; (ii) Institute for Territorial Studies (INETER); (iii) Institute of Municipal Development (INIFOM); and (iv)


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Ministry of Environment and Natural Resources (MARENA).The Additional Legal Matter consists of, namely, that each Co-execution Agreement has been duly authorized or ratified by the PGR on behalf of the Recipient and the respective Co-executing Agency and is legally binding upon the Recipient and the respective Co-executing Agency in accordance with its terms.

Type Description Disbursement No withdrawal shall be made under Category (2), for Emergency Expenditures,

unless and until the Association is satisfied, and notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Emergency has occurred, has furnished to the Association a request to include said activities in the Contingent Emergency Response (CER) Part in order to respond to said Eligible Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has prepared and disclosed all safeguards instruments required for said activities, and the Recipient has implemented any actions which are required to be taken under said instruments (iii) the Recipient's Coordinating Authority has adequate staff and resources for the purposes of said activities; and (iv) the Recipient has adopted the CER Operations Manual in form, substance and manner acceptable to the Association and the provisions of the CER Operations Manual remain - so as to be appropriate for the inclusion and implementation of said activities under the CER Part.

PROJECT TEAM

Bank Staff

Name Role Specialization Unit

Stamatis Kotouzas Team Leader(ADM Responsible)

Land Administration GSULN

Enrique Pantoja Team Leader Land Administration OPSIL

Carlos Lago Bouza Procurement Specialist(ADM Responsible)

Procurement GGOPL

Enrique Antonio Roman Financial Management Specialist

Financial Management GGOLF

Alain Adalberto Paz Quesada

Team Member Cadstral Surveying and Regularization

GSULN

Caleb Travis Johnson Team Member Operations GSULN

Clement Margarita Arguello Vega

Team Member Inter-Institutional Coordination/Strenghtening

GSULN


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Dianna M. Pizarro Social Safeguards Specialist Social Safeguards GSU04

Jacqueline Beatriz Veloz Lockward

Team Member Counsel LEGLE

Juan Jose Valencia Mineros Team Member Integrated Cadstre-Registry Information Systems

GSULN

Marc-Anton Wilhelm Pruefer

Team Member Public Sector OPSFO

Marco Antonio Zambrano Chavez

Environmental Safeguards Specialist

Environmental Safeguards OPSES

Maria Virginia Hormazabal Team Member Finance WFACS

Pilar Elisa Gonzalez Rodriguez

Team Member Counsel LEGLE

Ramiro Ignacio Jauregui-Zabalaga

Team Member Counsel LEGAM

Reina Altagracia Zavala Castillo

Team Member Municipal Strenghtening GSULN

Extended Team

Name Title Organization Location

Fabrice Edouard Monitoring and Evaluation FAO Rome,Italy

Mario Castejon Agr. Economist FAO Panama City,Panama

Yerania Sanchez Economist FAO Panama City,Panama


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NICARAGUA

NICARAGUA PROPERTY RIGHTS STRENGTHENING PROJECT

TABLE OF CONTENTS

I. STRATEGIC CONTEXT .................................................................................................... 10

A. Country Context ................................................................................................................ 10

B. Sectoral and Institutional Context .................................................................................... 11

C. Higher Level Objectives to which the Project Contributes ............................................... 13

II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 13

A. PDO .................................................................................................................................... 13

B. Project Beneficiaries .......................................................................................................... 14

C. PDO-Level Results Indicators ............................................................................................. 14

III. PROJECT DESCRIPTION .................................................................................................. 15

A. Project Components .......................................................................................................... 15

B. Project Cost and Financing…………………………………………………………………………………………………………19

C. Lessons Learned and Reflected in the Project Design ...................................................... 20

IV. IMPLEMENTATION ........................................................................................................ 22

A. Institutional and Implementation Arrangements ............................................................. 22

B. Results Monitoring and Evaluation ................................................................................... 23

C. Sustainability ..................................................................................................................... 23

D. Role of Partners................................................................................................................. 23

V. KEY RISKS ..................................................................................................................... 23

A. Overall Risk Rating and Explanation of Key Risks .............................................................. 23

VI. APPRAISAL SUMMARY .................................................................................................. 25

A. Economic and Financial (if applicable) Analysis ................................................................ 25

B. Technical ............................................................................................................................ 26

C. Financial Management ...................................................................................................... 26

D. Procurement ..................................................................................................................... 26

E. Social (including Safeguards) ............................................................................................. 27

F. Environment (including Safeguards) ................................................................................. 27

G. Other Safeguard Policies (if applicable) ............................................................................ 28


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H. World Bank Grievance Redress ......................................................................................... 28

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 30

ANNEX 1: DETAILED PROJECT DESCRIPTION ......................................................................... 39

ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 48

ANNEX 3: IMPLEMENTATION SUPPORT PLAN ...................................................................... 63

ANNEX 4: INSTITUTIONAL AND LEGAL CONTEXT .................................................................. 66


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I. STRATEGIC CONTEXT

A. Country Context 1. Nicaragua has made impressive gains in recent years on poverty reduction and economic growth. Between 1994 and 2016, real Gross Domestic Product (GDP) growth averaged four percent. Having reached 4.7 percent growth in 2016 the Nicaraguan economy is forecast to continue expanding. This growth has been driven by robust domestic demand and a strong performance of exports. Consumption spending and gross fixed capital formation, as well as net external demand also contributed positively to the development of real GDP. Moreover, extreme poverty decreased from about 17 percent in 2005 to about 8 percent in 2014. Similarly, the overall official poverty rate decreased from about 48 percent in 2005 to about 30 percent in 2014.1 This reduction has been driven mainly by growth through higher labor incomes in the agricultural sector in rural areas. Remittances from abroad and a demographic transition towards a more prominent working age population also had a direct impact on poverty reduction. 2. Despite the progress made, Nicaragua remains the second poorest country in Latin America in terms of average per capita income and the fourth poorest in terms of poverty rates. Not only is the proportion of Nicaraguans living in poverty still high, but there is also a large group who are not poor but who are highly vulnerable to the risk of falling into poverty if exposed to external shocks. Poverty also remains highly concentrated: in 2014, 70 percent of the total poor population of 1.7 million were living in rural areas. The poor in rural areas are more likely to work in agriculture, which remains a key sector in the country’s economy, even if its relative weight has decreased overtime. On the other hand, most of the population (close to 60 percent) is now urban. Surging urbanization and limited opportunities have led to the proliferation of poor settlements with informal occupation of land, often in precarious locations. 3. Strengthening property rights continues to be critical for Nicaragua's development and poverty reduction efforts. Recent government efforts have transformed the land sector with the enactment of new laws, modernization of institutions and systematic land regularization. This has not been an easy task, given the conflict experienced by the country and its impact on land records and tenure security. Many challenges remained after years of inconsistent legal and administrative decisions affecting land that contributed to tenure insecurity and undermined the population's confidence in state institutions, whose capacity was simultaneously weakened. It is estimated that in rural areas about one third of parcels are still held without a clear title, affecting poor agricultural producers’ tenure security and access to credit, among other things. Overall, land tenure insecurity has hindered potential investments and land market transactions, and generated land disputes. 4. At the same time, the country is highly vulnerable to natural disasters and climatic variability, such as hurricanes, extreme rainfall and earthquakes. Nicaragua’s geographic location makes it vulnerable to climate-related phenomena such as droughts, hurricanes, floods, landslides and geological events (e.g., earthquakes and volcanic eruptions). It is prone to flooding on its Pacific coast and has experienced hurricanes on its eastern coast. These climatic events are expected to continue, particularly in the country’s coastal zones. Although estimates are uncertain, tropical cyclones are on the increase and heavy rainfalls, combined with unsustainable land use

1 World Bank estimates based on 2005 and 2014 Living Standards Measurement Studies (Encuesta Nacional de Hogares sobre Medición de Nivel de Vida).


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management, make communities more vulnerable to landslides. Over the last decades, agricultural productivity levels in the country have been adversely affected by weather conditions marked by droughts, which are also likely to occur with higher frequency in the future. Given that the poor are more likely to be employed in the agricultural sector in rural areas, they tend to be more exposed to climatic shocks and natural disasters. The urban and peri-urban poor are also exposed to these risks often due to the hazardous location of their settlements.

B. Sectoral and Institutional Context 5. Recognizing the importance of addressing land tenure challenges, the Government of Nicaragua, with World Bank support, has been implementing a medium-term strategy through a programmatic approach. The strategy’s goal is to strengthen property rights and promote sustainable land governance, underpinned by an understanding that institutional development, legal and policy changes, and clarifying and recognizing property rights requires continued commitment and investments for a substantial period. This understanding has also been reflected spatially, with the program, officially named Programa de Ordenamiento de la Propiedad (PRODEP), rolled out selectively throughout the national territory based on criteria such as economic potential, land tenure issues, level of land conflicts, and poverty levels (Annex 1 details the Government’s vision and targets to 2030). The strategy and PRODEP are consistent with the National Plan for Human Development (PNDH)2, which recognizes the contribution of land tenure security to economic development by improving productivity through expanded access to credit and facilitating land regularization services at the local level. 6. PRODEP’s implementation formally started in mid-2002, with the first Bank-financed Land Administration Project (P056018). Given the substantial issues faced by the country, including a post-conflict transition, this project was designed as a pilot operation focusing initially in selected municipalities in three departments. When the project closed in 2013, it had helped Nicaragua to put in place a more effective and clearer institutional, legal and policy framework for land administration, and to develop and test a methodology for systematic land regularization for beneficiaries of several agrarian reforms (known as the reformed sector). As part of its institutional strengthening, this first project also helped develop a pilot Integrated Cadastre – Registry Information System (SIICAR 1.0) in Chinandega. Importantly, the project supported the recognition of territorial land rights of Indigenous Peoples in the country’s Caribbean region3. 7. Building on the experience and results from the pilot phase, the Second Land Administration Project (P121152) was launched in 2013. This second operation has helped to consolidate the land administration framework, including for instance, integration of the land regularization agency into the Attorney General’s office (PGR) to improve coordination, and establishment of the National Commission of Property Registries to manage better standards and procedures. An updated SIICAR (2.0) aligned with the new legal and policy framework established under the pilot phase is being developed, and will be implemented in Managua and Estelí, which are departments with high volumes of property transactions and economic dynamism. Moreover, the systematic land regularization has been scaled up to additional departments, and pilot activities are being supported to legalize property of small agricultural producers outside the reformed sector.

2 The PNDH, which covered initially the period from 2012 to 2016, is currently being updated by the government. 3 For further details on Project performance and results see Implementation Completion and Results Report for the Nicaragua Land Administration Project, Report no. ICR2858, October 23, 2013.


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8. Implementation of this programmatic approach has contributed to a substantial transformation of the land sector in Nicaragua. The country's policy and legal framework has been strengthened, and key land agencies' capacity improved. Specifically, the government enacted laws critical for cadastre and property registry modernization, as well as for the recognition of Indigenous Peoples’ land rights in the Caribbean region. In parallel, the institutional framework was consolidated with the PGR taking the lead on land issues, including as the implementing agency for the Bank-financed and other land operations. The technical capacity of the main land agencies has progressively increased, including the Nicaraguan Institute for Territorial Studies (INETER), which is responsible for the national cadastre system; the Property Intendancy (IP) under PGR, which oversees land regularization, and the property registries under the Supreme Court of Justice (CSJ), which under the Judicial branch of government, manages legal records and information. Moreover, improvements in the cadastre and regularization methodology have been mainstreamed. By the end of the ongoing second land operation, over 42 percent of the country's territory will have benefited from systematic cadastral activities. In addition, representing a historical achievement, Indigenous Peoples in the Caribbean had received collective titles to their ancestral territories covering about 30 percent of the country. Through these efforts, Nicaragua has also developed a good practice model for alternative conflict resolution and promoted gender equity in land rights.

9. Considering the progress achieved, and the importance of ensuring sustainability, Nicaragua needs to focus its efforts on several key remaining challenges. First, scaling up the integration of cadastre and registry information and processes is critical. The progress made on the policy and institutional framework provides a favorable enabling environment to advance the integration of cadastral and property registry information under clearly defined inter-institutional collaboration. However, SIICAR needs to be made fully operational and expanded to key property registries so that the government can learn and ensure revenues to continue its expansion to the rest of registries. Second, it is important to strengthen municipal capacity in order to support the integration of local governments into the national cadastre system and to foster the system’s accuracy and sustainability. Nicaragua’s advantage in this respect is that municipalities have the same system for their municipal cadastres, which makes it relatively easier than in other countries to link them to the national cadastre. On the other hand, because of the use of different methods and approaches, information from municipal cadastres is not always compatible with the national database and needs to be standardized. This represents a challenge, not only for the validity of the information of the national cadastre, but also for the final interrelationship that is expected between cadastre and registry information. Critically, investments in municipal capacities have the potential to promote better territorial planning and disaster risk management, and to ensure the continuous updating of cadastral information. Third, Nicaragua should expand the land regularization efforts beyond the reformed sector. Significant efforts have been made to improve the tenure security of rural households with land distributed as part of previous agrarian reforms. While further regularization is still needed in the reformed sector, other segments of the population such as small farmers outside that sector also face tenure security challenges and a growing need of property legalization. Finally, continuing to advance gender equity related to property rights by ensuring the implementation of current legislation allowing for joint titling for couples and promoting women’s land rights remains a priority. Beyond the land program’s objectives, the country faces the challenge of supporting the sustainable and culturally pertinent development of the indigenous territories of the Caribbean region following their demarcation and titling.

10. Given the country’s vulnerability, natural disasters and climate change pose challenges for sustaining recent social gains and preventing people from falling into poverty. Increasing disaster risk knowledge is essential for Nicaragua’s development process at the national and subnational levels, and to identify investments in risk mitigation. To inform this knowledge, it is necessary to have more and up-to-date geospatial information.


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For municipalities, this information coupled with increased technical capacity, could help in developing local vulnerability and hazard profiles to underpin land use plans and overall territorial development.

C. Higher Level Objectives to which the Project Contributes 11. The Project is aligned with the proposed Nicaragua Country Partnership Framework (CPF) 4 for FY2018-2022, particularly with the Pillar “Improving Institutions for Resilience and Sustainability.” The CPF will support the government’s efforts to reduce poverty by accelerating economic growth and generating employment for a large share of Nicaraguans. This support will be provided through three mutually reinforcing pillars: Investing in human capital, in particular for disadvantaged groups; accelerating inclusive growth for job creation; and improving institutions for resilience and sustainability. Under the third pillar, the Project will contribute directly to the objective of improving government transparency and capacity, which focuses on improving availability of data, public sector capacity to facilitate the effective allocation of public and private resources, and the provision of an appropriate legal and institutional framework. Given the expected results, the Project will also contribute to the objective of improving natural resource management and reducing vulnerability to natural hazards. Importantly, the Systematic Country Diagnostic (SCD)5 underpinning the CPF recognizes that the strengthening of property rights through land administration investments is pivotal to lift constraints in Nicaragua’s key sectors and industries. The SCD calls for continued efforts to secure land property rights and strengthen Nicaragua’s land administration institutions, which are critical to increase productivity, especially in the agricultural sector. 12. The Bank is currently Nicaragua’s main partner for PRODEP’s implementation. Considering its long engagement in the country and its regional and global experience, the Bank is uniquely positioned to help the country move closer to achieving its vision for the land administration sector, ensuring sustainability while helping to expand cadastral and regularization activities into new areas including municipalities within the Dry Corridor6 – an area of focus under the proposed CPF. In this respect, project design also reflects opportunities for enhancing overall impact of the Bank program in Nicaragua by coordinating with other Bank-financed operations and technical assistance. Specifically, the Project will be coordinated with a new project under preparation to strengthen agricultural productivity and climate resilience in the country’s Dry Corridor (P162982). Furthermore, it will be coordinated with the new Resilient Landscapes Management Project (P160688) to be financed by the Global Environmental Facility. This Project will seek to strengthen the National Protected Areas (PA) System and support sustainable land use and restoration practices in selected areas of the Dry Corridor.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO 13. The PDO is to provide beneficiaries in selected municipalities with: (a) updated and integrated cadastral and property registry information; and (b) improved land administration services. In the medium to long term, these outcomes will contribute to the strengthening of property rights, including better tenure security for the

4 The previous Country Partnership Strategy (Report No. 69231-NI) covered FY2013 to 2017. The Strategy recognized that although progress had been made on land tenure security, more remained to be done. It thus aligned the programmatic support to land administration and regularization with several of its objectives. 5 Report no. 116484-NI 6 The Dry Corridor is a strip of land of approximately 10,000 square kilometers with roughly one million inhabitants. The corridor is prone to droughts that pose significant risks for water and food security.


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poor and vulnerable groups, and more broadly, to the Government’s efforts to improve the investment climate and expand economic opportunities for Nicaragua’s population. This dynamic is illustrated in Graph 1 on page 15 -- the Project’s underlying theory of change. B. Project Beneficiaries 14. Project Beneficiaries. The Project’s direct beneficiaries include, through systematic cadastral and surveying activities, households in selected municipalities; and on a demand basis, households requesting land regularization that are prioritized by national programs7. Attention will be paid to ensure that women benefit from titling and regularization services by promoting issuance of titles jointly to couples and to female-headed households. Implementation of SIICAR will not only benefit people within the jurisdictions of the selected property registries, but also specialized users (such as notaries, lawyers, financial institutions) and municipalities. In addition, authorities and technical staff in selected municipalities will directly benefit from technical assistance, cadastral information, and improved coordination with land administration agencies. More generally, the Project is expected to benefit the country’s population through mainstreaming of the methodologies and increased capacity for cadastre and regularization, as well as through the increased capacity to respond to emergencies through the Contingent Emergency Response Component (CERC). C. PDO-Level Results Indicators 15. The following are the key results indicators of the Project:

(i) Parcel-based data identified and linked in the cadastral and property registry modules of SIICAR;

(ii) Satisfactory independent evaluation of SIICAR in terms of operation, data, and security;

(iii) Reduction in number of days to complete recording of purchase/sale of property in the Property

Registers with SIICAR;

(iv) Legal documents issued to Project beneficiaries (of which, (i) number of new titles and deeds

registered in the Property Registry, and (ii) percentage that benefit women or couples jointly); and

(v) Municipalities that manage cadastral information with SISCAT linked to the national cadastre.

7 The number of direct beneficiaries from cadastre and regularization activities is estimated at 520,000 (based on 2015 population projections).


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Graph 1

III. PROJECT DESCRIPTION

A. Project Components

16. Project design reflects the progress achieved by Nicaragua over two phases of PRODEP implementation, emphasizing the need to ensure that the Project will help establish a functioning and sustainable land administration system, and sufficient capacity among the country’s land agencies and municipalities to deal with remaining issues. Accordingly, Project design centers around three strategic themes: (i) finetuning the institutional and policy framework and integrating systems; (ii) expanding cadastral, regularization and titling services to the central region of the country; and (iii) strengthening of municipal capacities for land administration and territorial planning. In addition, it is underpinned by work in two cross-cutting areas: (i) promoting social and environmental sustainability through, inter alia, facilitating use of information generated by the Project beyond cadastre and land regularization, promoting social inclusion and gender equity, and raising environmental


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protection awareness and education; and (ii) ensuring sustainability of key investment as it is relevant to several important activities, including institutional capacity and inter-institutional collaboration for the continuous and effective operation of SIICAR and the national cadastre database, municipal capacities for cadastral information, as well as the development of a culture of registry for maintaining the formal status of titles generated by PRODEP and the accuracy of the cadastral and legal information in the long term.

17. The above approach is also reflected in the geographical expansion of the program under the Project. The Project will focus on: (i) selected municipalities in the departments of Matagalpa, Boaco, Chontales, and Rio San Juan located in the north and central regions of the country; in these municipalities, the Project will support systematic cadastral surveying and regularization, as well as related activities such as the demarcation of Protected Areas (PAs) and the strengthening of municipal capacities; and (ii) selected municipalities and property registries in departments supported by the previous Bank-financed projects, and where the systematic cadastral surveying and regularization is well advanced, making conditions for expanding the SIICAR more feasible. In these areas, the Project will support technical activities related to the implementation of SIICAR, data migration, and integration of municipalities into the national cadastre system. The initial list of municipalities, and the specific criteria for selection of municipalities and property registries is summarized in Annex 1, and detailed in the Project Operations Manual (POM). 18. The Project includes five Components. The first four Components are directly related to outcomes (a) and (b), while Component 5, consistent with the strategic approach taken for Nicaragua, corresponds to potential support for immediate emergency recovery. These Components and the Project’s Sub-components and activities are summarized below. 19. Component 1 - Institutional and Policy Framework and System Integration (US$18.75 million). This Component will strengthen Nicaragua’s land administration system by supporting key policy consolidation and inter-institutional coordination and collaboration, and furthering the integration of the cadastre and property registry information and streamlining of processes. As such, it will help expand SIICAR strategically to key property registries, while promoting the use of information beyond cadastre and regularization and the taking of basic steps towards an inter-operable national land information system that different entities at the national and local level would access as users and producers of information. Technical co-executing agencies for this Component include IP-PGR, INETER, and CSJ. Component 1 will include the following Subcomponents and activities: 20. Subcomponent 1.1 (US$1.23 million) – Improving land administration policies and interinstitutional collaboration through: (i) the development and revision of land administration policies, standards, procedures, and technical manuals; (ii) capacity building and training for the institutionalization of policies and procedures and improved understanding of the inter-relationship between the cadastre and the property registry; and (iii) conducting relevant institutional, policy, environmental studies to help inform the government’s future land policy and strategy. 21. Subcomponent 1.2 (US$12.75 million) – Strengthening the integration of cadastre and registry information through: (i) the implementation of SIICAR and the integrated cadastre-registry management model in selected property registries; (ii) the migration and linking of cadastral and registry data in the Departments of Estelí and Managua; and (iii) the preparation of a Change Management and Sustainability Strategy for SIICAR.


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22. Subcomponent 1.3 (US$4.77 million) – Modernizing the national cadastre system and related services through: (i) the implementation of a Cadastre Modernization Strategy8 set out in the POM; (ii) the establishment of six new Continuously Operating Reference Stations (CORS) in accordance with prioritization and location criteria set forth in the POM; (iii) the establishment of Cadastre Regional Offices in the departments of Boaco, Chontales and Rio San Juan; (iv) the carrying out of a spatial data infrastructure (SDI) pilot, including: (a) the integration of INETER’s geo-spatial databases (disaster risk management, territorial planning, geodesy, and cadastre), and (b) the preparation of a national-level strategy for SDI’s interoperability with other governmental databases (including databases of ministries and other public entities generating and using geospatial information); and (v) the implementation of a registry, monitoring and quality control system for private cadastral surveyors. 23. Component 2 - Cadastre, Regularization and Titling Services (US$25.67 million). This Component will support the production of cadastral information and the recording and clarifying of land rights through systematic and on-demand land regularization, including issuance of legal documents as well as new titles and their registration. The systematic process will continue to focus on beneficiaries belonging to the "reformed sector9.” On-demand activities will focus on beneficiaries prioritized by government programs, including small producers not belonging to the reformed sector. The Component will also support the legal processes related to project activities and production of information on state land that pertains to the PGR. To meet the Component’s objective, the Project will also support the demarcation of PAs located within the municipalities selected for the systematic cadastral surveying. Under this Component, technical co-execution will involve INETER, IP-PGR, CSJ and MARENA. Specific Subcomponents and activities for this Component include: 24. Subcomponent 2.1 (US$12.19 million) - Expanding cadastral coverage through: (i) systematic and on-demand cadastral surveying including, inter alia, acquisition of aerial photography, and carrying out of field activities; and (ii) incorporating cadastral information into the national database10. 25. Subcomponent 2.2 (US$10.38 million) – Expanding land regularization, titling and registration through: (i) systematic land regularization, titling and registration in selected municipalities; (ii) demand-based land regularization, titling and registration for selected beneficiaries11; and (iii) implementation of the Project’s Communication Strategy, as set out in the POM. 26. Subcomponent 2.3 (US$2.29 million) - Demarcating PAs in selected municipalities through: (i) the carrying out of preparatory work, data collection, consultation of beneficiaries, geo-referencing and physical demarcation of PAs in Selected Municipalities, and their registration in the National System for Environmental Information; and (ii) the carrying out of communication and outreach campaigns in PAs and neighboring communities. 27. Subcomponent 2.4 (US$0.81 million) – Implementing mediation and conflict resolution through: (i) the provision of mediation services during cadastral and regularization processes; and (ii) the provision of conflict resolution training for mediators and staff of co-executing agencies.

8 The Strategy focuses on the multiple uses of cadastral information, including at the municipal level, and on its integration with registry information and overall sustainability. 9 Rural households who live in land allocated during the previous agrarian reforms, but lack clear property rights. 10 In addition to regularization, cadastral surveying activities will generate information for SIICAR implementation and for selected municipalities. 11 Beneficiaries prioritized by GoN’s pertinent national programs described in the POM.


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28. Component 3 - Municipal Land Administration Services (US$2.64 million). This Component will strengthen land administration capacities at the municipal level to promote their effective performance in the national cadastral system, as well as the better use of information for local planning and fiscal purposes, disaster risk management and overall development. In the medium term, this Component will contribute to enhancing the impact of cadastral information and the sustainability of cadastral investments. Main technical co-executing agencies for this Component include INIFOM and INETER, which will work in close collaboration with participating municipalities. The Subcomponents and activities under this Component include: 29. Subcomponent 3.1 (US$1.70 million) – Integration of municipalities into the national cadastral system through: (i) the installation of the updated municipal cadastral system (SISCAT) in selected municipalities and its integration with the national cadastral information system, and where applicable, into SIICAR; (ii) the provision of technical assistance and training to selected municipalities on: (a) the incorporation of cadastral information into SISCAT; (b) the integration of SISCAT into the national cadastral information system, and (c) the selected municipalities’ role in the maintenance of the national cadastral information system; (iii) the preparation of procedures and guidelines on, inter alia, the role of municipalities in the national cadastral information system and the management of the municipal cadastre; and (iv) the preparation of a strategy for the maintenance of cadastral information in municipal cadastral databases linked to SIICAR, including roles, procedures and standard processes. 30. Subcomponent 3.2 (US$0.94 million) – Strengthening municipal capacities for the use of cadastral information for multiple purposes through: (i) the provision of technical assistance and training on, inter alia, the use of geospatial information for disaster risk assessments, investment planning, and territorial development; and (ii) the carrying out of analyses of shared land (ejidos) and municipal lands. 31. Component 4: Project Management, Monitoring and Evaluation (US$2.94 million), will support PGR, and its PCU, to manage the Project and to monitor its progress and evaluate it. Specific Subcomponents and activities for this Component are: 32. Subcomponent 4.1 (US$2.52 million) – Supporting Project Management through: (i) the provision of training and carrying out of workshops; (ii) the carrying out of the coordination, administrative and fiduciary aspects of the Project, including audits; and (iii) carrying out the oversight of the Project communication strategy and gender strategy. 33. Subcomponent 4.2 (US$0.42 million) – Supporting the Monitoring and Evaluation of the Project through: (i) the collection of base line data to assess the Project’s social, environmental and economic impacts; and (ii) the preparation of the Project’s semi-annual progress reports, midterm review report and final evaluation report, including any necessary surveys and data collection activities. 34. Component 5 - Contingent Emergency Response Component (CERC) (US$0.0 million). Reflecting the strategic approach taken in Nicaragua across the Bank’s portfolio, this Component will provide immediate response to an eligible emergency. As such, in the event of such eligible emergency (as defined in the CERC Operational Manual already prepared and adopted by the government), and at the request of the government, the Component would finance emergency activities and expenditures through the reallocation of funds from the Project.


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Table 1 – Summary of Project Costs

Project Components Project cost IBRD or IDA

Financing

1. Institutional and Policy Framework and System Integration

18.75 18.75

2. Cadastre, Regularization and Titling Services

25.67 25.67

3. Municipal Land Administration Services 2.64 2.64

4. Project Management, M&E 2.94 2.94

5. Contingent Emergency Response Component

0 0

Total Costs 50 50

Total Project Costs 50 50

Front End Fees

Total Financing Required 50 50

Cross-Cutting Activities 35. The Project will continue supporting government efforts to promote gender equity in property rights. Based on the experience of the previous land operations, project design is gender-informed, and has a Gender Strategy based on an updated gender assessment12. Reflecting the country’s gender-sensitive legislation, the Strategy seeks to benefit women by promoting issuance of titles jointly to couples as well as to female-headed households, and by financing specific communication activities designed to raise women’s awareness of their property rights. Moreover, the Project will finance technical capacity-building activities at the central and local level that include gender equity modules, and produce technical manuals that are informed by gender considerations. The results framework includes gender-differentiated indicators to measure progress. Implementation of the Project’s Communications Strategy further complements the implementation of the Gender Strategy. Please refer to “Social Assessment” and “Gender Analysis and Strategy” in Annex 2 for a summary of the analysis of the gender gaps and related actions.

36. The Project will also further enhance citizen engagement mechanisms. A grievance redress mechanism (GRM) has been operational under the ongoing land project using existing institutional channels and processes for feedback and case resolutions. This mechanism will be supported and enhanced under the Project based on the ongoing experience to provide a two-way communication channel and processes that allow beneficiaries to seek additional information about the Project, and present and resolve grievances and queries adequately. The Communications Strategy will inform stakeholders of the existence of the GRM, its various entry points, and how

12 The Gender Strategy and the related assessment are available in the project files.


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complaints received will be handled by the relevant agencies. The results framework includes an indicator to track performance of the GRM. 37. The Project will help address climate change and disaster risks through both mitigation and adaptation. With regard to climate change mitigation, the Project will contribute to the conservation of critical habitats by helping identify these zones, and facilitate management of PAs. The demarcation process will allow for community and inter-institutional participation while increasing peoples' awareness and education about the importance of PAs and natural resource protection in general. Project activities will support the updating of land information, such as cadastre and survey maps, with which the government will be able to map the needs of municipalities and strategically plan the provision of services and infrastructure considering climate change vulnerability and disaster risk management. To inform all of the above, the World Bank’s Climate and Disaster Risk Screening Tool has been used in the analysis of the Project’s activities and potential contributions. 38. More specifically, the following Subcomponents and activities have direct climate change and disaster risk planning co-benefits: (i) Subcomponent 1.3 through the implementation of a spatial data infrastructure that integrates territorial planning, disaster risk, and geographical databases; (ii) Subcomponent 2.1 though the creation of base cadastre maps; (iii) Subcomponent 2.3 through the demarcation of PAs and the educational campaigns for natural resource conservation awareness; and (iv) Subcomponent 3.2 by strengthening municipal capacities in the use of the cadastral data for disaster risk planning purposes. Based on the projected investments required for these activities, the climate co-benefits under the Project were estimated at appraisal to be 41.7 percent of the IDA financing.

C. Lessons Learned and Reflected in the Project Design

39. Project design reflects lessons learned from the Bank’s programmatic support to land administration in Nicaragua, as well as Bank’s regional and global experience and relevant Independent Evaluation Group (IEG) reviews and reports.13 The 2016 mid-term review of the ongoing land operation also provided an excellent opportunity to take a retrospective analysis of the experience accumulated by the country, and the lessons identified then have also been taken into consideration. Specifically, the main lessons are:

• As IEG and various Implementation Completion Report reviews corroborate, land administration reforms require long term and programmatic support. The Project is fully aligned with the programmatic approach’s goal and phasing of activities, and reflects the continued government commitment to modernizing land administration, and in the medium term, strengthening land tenure. The use of a programmatic approach helps to manage risks and the level of complexity of a specific operation, as the experience of Nicaragua demonstrates.

• At the same time, as the land program matures, global experience shows that it is critical to focus on sustainability and mainstreaming of results. Nicaragua has made substantial progress regarding its institutional, legal and policy framework, technical capacity, and systems. The Project builds on this progress, and emphasizes sustainability through key elements consistent with the country’s context, such as enhancing the role and capacities of municipalities, and ensuring that SIICAR is implemented

13 Some of the relevant IEG reports include “Lessons Learned from Land Administration Projects: A Review of Project Performance Assessments” (March 2016); and “World Bank Support to Land Administration and Land Redistribution in Central America (June 2010).


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in key property registries so that there is sufficient learning and revenues for future expansion and maintenance.

• Ownership of, and commitment to land administration modernization efforts and results can be strengthened by effectively engaging key land agencies under clear leadership. A key element of the progress made through the ongoing land program in Nicaragua has been the increasingly stronger inter-institutional collaboration of land agencies. This has been promoted by giving land agencies direct technical responsibilities according to their mandates, while clarifying each agency’s role and responsibilities under the leadership of a main institution (i.e. PGR). The Project builds on this approach by maintaining a decentralized technical co-execution arrangement with specific responsibilities assigned to the key land agencies under PGR as lead implementing agency. These arrangements are strengthened at the operational level by Project coordination and technical committees as well as inter-institutional co-execution agreements prepared and signed by component rather than by each co-execution agency.

• Building national technical capacity for land administration is important for both overall sustainability and adequate implementation. Incremental interventions, including piloting of innovations, tailored to the local context, have proven to be very useful to build technical capacity and sustain results. The Project builds on this lesson by helping expand and continue improving the cadastre and land regularization methodology developed and tested through the previous operations to new sectors of the population and areas of the country. Importantly, the Project will also help scale up the new SIICAR, which has been designed mainly with local expertise and based on the experience of a pilot effort. By building a system that responds to local capacities and conditions, improvements and changes are more likely to be institutionalized.

• The impact of land administration and land regularization efforts can be enhanced through strong coordination with interventions in other sectors. Recognizing that land issues are relevant across various sectors the Project has been designed keeping in mind ongoing and new operations that would enhance development impacts in the project area or at the policy and institutional level. Opportunities for enhancing regional and country-level impacts will continue to be sought during project implementation.

• Cadastre and land regularization activities should pay attention to social aspects, in addition to technical issues. The experience of Nicaragua and other countries with similar contexts has shown that ensuring beneficiaries’ support is as important as having adequate technical specifications and expertise for surveying and regularization. The Project, based on lessons learned from the previous land operations in the country, includes a communication strategy and a citizen engagement mechanism to promote strong socialization and awareness, and active involvement of beneficiaries, taking into consideration gender and cultural issues.

• Alternative conflict resolution mechanisms can facilitate cadastral and regularization processes, as corroborated by Nicaragua’s experience. Over time, the country has established a good practice model for alternative conflict resolution and has institutionalized it within the CSJ. The Project builds on this experience, and includes key elements such as capacity development for conflict mediation, community outreach, and close inter-institutional coordination.


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IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements 40. The Project will replicate the implementation arrangements of the ongoing Second Land Administration Project (P121152). The PGR will continue to be the lead agency and implement the Project through its PCU, known as the Project Executive Secretariat (SE PRODEP). The PCU will continue to oversee financial management, procurement, and the management of all credit funds. The PCU will also be responsible for safeguard compliance, supervision of the implementation of the communication and gender strategies, and M&E. 41. The PCU will be under the leadership of a General Coordinator (Executive Secretary), and will also include as its core staff a technical coordinator and specialists in the areas of procurement, financial management, M&E, social development and gender, environment, and communication. The General Coordinator will have the overall responsibility to supervise the PCU staff in their planning, organizing, and executing of all day-to-day administrative, technical, and legal activities of the Project. The Operations Manual includes the PCU's organizational structure and describes the duties and responsibilities of PCU staff along with the Project's technical, administrative, financial, procurement, safeguards, and M&E procedures. 42. The Project’s CIP, chaired by the PGR and composed of senior management of the co-executing institutions will continue to provide policy and strategic guidance; and the CTO, composed of the Technical Secretariat and coordinators of the Components, will continue to coordinate Project activities at the technical level and support the CIP, as required. 43. The technical implementation of the Project will remain decentralized through the co-executing agencies: (i) the CSJ, which through the National Directorate of Registries (DNR) and the Directorate of Alternative Dispute Resolution (DIRAC) is responsible for the registration of ownership, mediation of conflicts and the development and implementation of SIICAR – the latter in close collaboration with INETER; (ii) INETER, responsible for the national cadastre and the carrying out of cadastre activities, in addition to monitoring and generating information on natural hazards and spatial planning; (iii) the Nicaraguan Municipal Development Institute (INFOM), responsible for the development of municipal capacity, including the development of the capacity of cadastral services and the integration with INETER's national cadastre; and (iv) the Nicaraguan Ministry of Natural Resources and Environment (MARENA), in charge of activities related to PAs and raising awareness of environmental sustainability. In addition, (v) the Property Intendancy (IP) under the PGR is responsible for the processes of regularization and titling of the properties of both the reformed sector and of the properties of small holders outside the reformed sector. As done in the previous land operations, these agencies will sign co-execution agreements by Component with PGR specifying their respective roles and responsibilities under the Project. 44. Before starting activities at the local level, the PGR will sign participation agreements with the municipalities benefiting from the Project. These agreements will describe the roles and responsibilities of the municipalities within the scope of their local competencies.


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B. Results Monitoring and Evaluation 45. PGR, through the PCU, will be responsible for Monitoring and Evaluation (M&E). Accordingly, the PCU will (i) collect, consolidate and report on project performance data (including physical and financial progress); and (ii) provide periodic information on intermediate project results and progress toward outcomes. Co-executing agencies will provide the necessary inputs to ensure adequate M&E. The PCU will prepare semi-annual progress reports throughout project implementation. The credit will finance gathering of baseline data to assess the Project's social, environmental and economic impacts, including gender-differentiated impacts. Project indicators and results will be assessed in depth during the Mid-term Review and final evaluation, both of which will be carried out by independent consultants.

C. Sustainability 46. The Project builds on the experience and satisfactory results of a major pilot effort supported through the first operation of the ongoing programmatic approach. Successive governments have maintained a consistent land policy and strategy, and have moved forward reforms that have resulted in a clearer legal and institutional framework. Under the Project, inter-institutional coordination will be further emphasized, while also focusing on making municipalities active partners in land administration. Municipalities’ more active involvement will help increase the sustainability of project results by ensuring that cadastral information is kept updated and eventually used for multiple purposes, including for territorial planning and disaster risk management. Moreover, current achievements will be consolidated by continuing to support institutional capacity building, the modernization of property registries, and the scaling up and institutionalization of SIICAR. Indeed, sustainability of SIICAR is a major focus of the Project. This is reflected in the selection criteria for the property registries included under the Project for SIICAR implementation, which emphasizes volume of property transactions and socio-economic impacts, thus ensuring further enhancement of CSJ revenues. The criteria for selection of property registries has also been framed within a Strategy for SIICAR expansion, while the Project will support the preparation of a Change Management and Sustainability Strategy, including a multi-year business plan beyond the Project’s closing date. Finally, as noted above, SIICAR is a locally developed system aligned with local capacities and the country’s context. Property registries are generally self-sufficient financially (with key registries, as in other countries, bringing in more revenues), and it is expected that Project support for SIICAR expansion will have a positive financial impact. In the medium term, through improvement in registry and cadastral services, helped by outreach and social communication, a culture of registry should take hold in the country.

D. Role of Partners 47. There is no co-financing or parallel financing for the Project. At present, the Bank is the main partner of Nicaragua in modernizing land administration. Preparation of the Project has been advanced with technical assistance from the Food and Agriculture Organization (FAO). Collaboration will continue throughout project implementation.

V. KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks


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48. Overall risk is considered Moderate. The Project is part of a programmatic approach, and its design reflects accumulated experience and lessons learned. Government commitment is evident by the support given to the legal, policy, and institutional changes achieved under the previous operation and to the implementation of the ongoing land operation. Strengthening of property rights remains a government priority. PGR has a strong commitment to the land administration agenda, and there is broad consensus on land regularization in Nicaragua. As with previous operations, project implementation is likely to unfold in a stable policy environment. The legal framework has been strengthened, with some work still needed for the integration of cadastral and property registry data and processes (see Annex 4 for details on the institutional and legal context). Institutional capacity for implementation and sustainability has increased throughout the programmatic Bank support, posing a moderate risk to PDO achievement. PGR has proven to be a diligent implementing agency, methodologies for land regularization have been developed and tested, while national capacity has increased and institutionalized in key land agencies. 49. Most specific risks are also considered moderate. Nevertheless, there are some issues that require attention during implementation, including:

• Ensuring continuous inter-institutional collaboration can be periodically challenging, even if it has improved over time. Land administration functions – similarly to other countries – are shared between the judiciary (property registry) and the executive branch (cadastre and regularization). PGR has a strong mandate to lead the land policy agenda and coordinate the land administration system in the country, but contrasting views and priority issues between the two branches may sometimes emerge. A mitigating factor is that SIICAR development and implementation has been identified as a common priority, and further integration of the property registry and cadastral information platforms under the Project will foster closer and more permanent collaboration. This collaboration will be further strengthened by the development and institutionalization of the integrated cadastre-registry management model required for SIICAR, and agreed between INETER and CSJ. At an operational level, this issue will be managed by ensuring an active role of the CIP and the signing of co-execution agreements by project components that allow each agency a better understanding of their interrelated roles and responsibilities.

• Maintaining the focus on municipalities to promote their integration into the national cadastre system. There is consensus on the important role that municipalities will play in the sustainability of the national land administration system. However, the level of the partnership to be established between the central government and the municipalities may not always be fully clear to the agencies involved. The focus on municipalities has been enhanced in Project design, starting from the PDO to the inclusion of a specific component and concrete activities to strengthen the role of municipalities and the interaction between the municipal cadastre systems and the national system through technology, capacity development, and accreditation.

• Considering Nicaragua's vulnerability, it is possible that a major disaster would occur during the Project's implementation period. To mitigate this country risk, the Project includes a CERC as part of DRM support for Nicaragua.


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VI. APPRAISAL SUMMARY

A. Economic and Financial (if applicable) Analysis

Net Present Value of Flows

Expected Benefits US$52.45million Total Project Costs US$38.32 million

Net Benefits US$14.13 million Internal Rate of Return (IRR) 19.33 percent

50. As shown in the table above, results of the economic and financial analyses indicate that the Project represents a sound investment from the cost/benefit and fiscal impact point of view. The cost benefit analysis aims to establish a rationale for a particular investment if it provides sufficient returns/benefits to account for, and justify, its costs and the opportunity cost of capital from society's perspective. The economic benefits quantified for the Project's cost/benefit analysis are those expected to accrue through higher property values as a result of increased land tenure security after titling. The likely impact of titling on property values was estimated through econometric and other statistical methods that allowed for isolating, with a reasonable degree of statistical confidence (95 percent), the effect of property titling on perceived market values from the effect of other variables contributing to the determination of property prices. Based on the estimated effect of property titling on perceived market values, and the physical targets established for the Project, it was possible to calculate the stream of discounted economic benefit resulting from the Project (at a discount rate of 10 percent).14 The discounted economic benefit stream contrasted to the stream of discounted project costs (including all project costs) allowed for the estimation of the Economic Net Benefits and Economic Internal Rate of Return (EIRR). 51. The fiscal impact analysis aims at quantifying the net impact that the implementation of the project would have on both central and municipal government finances. In this case, this impact was primarily estimated on the basis of incremental operating costs and projected fiscal revenues captured by institutions providing services as part of the land administration system.15 Final results show that the net present value of incremental fiscal revenues is sufficient to cover the incremental costs associated with project activities while resulting in net fiscal gains. The incremental fiscal revenues, even when the projection only considers property tax (impuesto sobre bienes inmuebles) revenues from 2018 until 2030, have a net present value of US$2.6 million (at a 10 percent discount rate). A full economic and fiscal analysis is available in project files and the project's website.

14 The social discount rate generally estimated by the country is 8 percent, based on a revision from 2011 (Finance Ministry guidelines for public investment projects available at http://www.snip.gob.ni/). In recent years, there have been no further revisions or academic papers on likely changes to the main assumptions used in the estimation of the social discount rate of return. Therefore, in agreement with the government and considering the specific land sector dynamics, a more conservative rate of 10 percent was applied to the economic and financial analysis of the Project. A 10 percent rate is also applied to the financial analysis based on the increasing interest rates of Central Government Bonds at terms longer than 5 years. 15 Fiscal revenues refer solely to the estimated increase in the property tax revenue generated through the Project (10 percent increase starting from an estimated 40 percent of potential property tax). The incremental operating costs represent 20 percent of incremental revenues.


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B. Technical 52. The Project builds on the experience, proven methodologies, and national and local capacities developed over the years with the support of the Bank and other development partners. At the same time, these methodologies reflect current international good practices adapted to Nicaragua's legal, historic and institutional context. The cadastral surveying and regularization methodology has resulted in improved processing and costs, as reflected for instance in a substantial reduction in the time required for regularization from over two years down to three months. Unit costs are comparable with those in countries in the region with similar historic and legal challenges, even if they are relatively higher in relation to global averages. Under the country’s context, social aspects – which are always critical – tend to have even more weight, thus demanding intensive attention to beneficiaries’ awareness raising, outreach and participation. On the technical side, Nicaragua’s methodology is underpinned by a standardized parcel cadastral surveying process using modern technologies such as orthophotos, Global Positioning Systems (GPS), and total stations that are cost and time efficient. The experience gained so far has also yielded a more precise estimation of costs and a better understanding of the technical and capacity demands of cadastral and regularization activities. The Project will continue to support capacity building and techniques to further achieve cost reductions while ensuring quality of cadastre products and legal documents. Finally, the automated integration of the cadastral and property registry information platforms will be furthered by ensuring consistency among processes, program development and inter-institutional coordination.

C. Financial Management 53. A Financial Management Assessment of the PGR was carried out in accordance with the World Bank’s Investment Project Financing (IPF) policy. PGR, through its PCU, will be directly in charge of financial management tasks, which include: (i) budget formulation and monitoring; (ii) cash flow management (including processing of payments and submitting withdrawals applications to the Bank); (iii) maintenance of accounting records (including the administration and maintenance of an inventory of Project assets); (iv) preparation of in-year and year-end financial reports; (v) administration of underlying information systems; and (vi) arranging for execution of external audits. Furthermore, the PCU will oversee the Project's administrative aspects and will ensure coordination with co-executing agencies. Based on the recent capacity assessment (November 2017), overall financial management risk is considered Moderate. Some of the main conclusions of the Assessment highlighted that PGR-PCU has in place adequate FM arrangements that meet the Bank's minimum fiduciary requirements to manage the financial activities of the proposed Project and identified project-specific actions to enable the PCU to carry out the financial activities of the Project.

D. Procurement 54. The Project will be executed in accordance with the World Bank Procurement Regulations for Borrowers under IPF, dated July 1, 2016 (“Procurement Regulations”), and the provisions stipulated in the Procurement Plan and the POM. The recent capacity assessment (November 2017) confirmed that PGR-PCU has the necessary procurement capacity. The procurement team of the PCU has gained relevant experience in executing the ongoing second land operation, and has already received training on the Procurement Regulations. A Project Procurement Strategy for Development (PPSD) was finalized, describing how procurement in this operation will support the PDO and deliver value for money under a risk-based approach. Based on the PPSD, which identified the appropriate selection methods, market approach, and type of review to be conducted by the World Bank,


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most Project activities will be carried out through national or international competition. Mandatory Procurement Prior Review Thresholds detailed in Annex I of the World Bank’s Procurement Procedure are reflected in the PPSD. All procurement procedures, including roles and responsibilities of different participating entities and units are defined in the POM. The Procurement Plan for the first 18 months of Project implementation has been completed in accordance with the PPSD. The overall procurement risk rating is Moderate (see mitigation measures in Annex 2).

E. Social (including Safeguards) 55. A Social Assessment (SA) was carried out to analyze the social risks and opportunities related to land administration and tenure within the new four departments where the Project will intervene. The SA’s methodology included a stakeholder mapping and consultations in November 2017 with the stakeholders in these departments. As the SA corroborated, the Project does not trigger OP/BO 4.10 on Indigenous Peoples. The SA also made specific recommendations for the Project to continue to strengthen actions to proactively include women as project beneficiaries and support strong citizen engagement during project implementation. These actions are reflected in the Project’s Gender Strategy and citizen engagement activities. The results of the SA are summarized in Annex 2. 56. The Project triggers social safeguards for Involuntary Resettlement (OP/BP 4.12) as support for demarcating the external boundaries of PAs could potentially contribute to restrictions in access. No involuntary land taking or physical displacement will be caused by the Project. The Project will not include the preparation or updating of management plans of the selected PAs nor will it result in changes to their existing zoning. Nevertheless, given that demarcation could pose a potential risk of restricting access to natural resources, as required by the Resettlement Policy (OP/BP 4.12), a Process Framework was prepared to ensure that (i) the population living adjacent to or within a PA, or using the area's resources, is consulted during the demarcation process, and if necessary, that (ii) adequate measures are taken, in a participatory manner, to minimize and/or mitigate any potential adverse impacts. The Process Framework was prepared and is included as an annex to the POM. The Process Framework was made available to the public on January 23, 2018, on the World Bank's external website and in-country on the PGR’s website, as well as in PGR's offices in Managua and in the regional offices of PGR and INETER).

F. Environment (including Safeguards) 57. The Project is classified as Category B. The Project triggers environmental safeguard policies for Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Physical Cultural Resources (OP/BP 4.11), and Forests (OP/BP 4.36). An Environmental Assessment (EA), which includes the Environmental Management Plan (EMP), was prepared in consultation with relevant stakeholders. In accordance with the Bank's Information Disclosure Policy (BP 17.50), the EA-EMP was made available to the public on January 23, 2018, on the World Bank's external website, and in-country in the PGR’s website, as well as in PGR's offices in Managua and in the regional offices of PGR and INETER). 58. The Project is expected to have positive overall environmental impacts. Secure tenure and secure access to natural resources are widely recognized as essential foundations for achieving sustainable environmental


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management and economic development goals.16 Increased tenure security, and secure access of local communities to forest tenure and natural resources can contribute to reduce illegal deforestation and degradation of rural landscapes, maintain vital ecosystems services, reduce greenhouse emissions, and improve agricultural productivity—leading to income benefits—as landholders are incentivized to adopt long-term land use practices that foster sustainable landscape management. The Project will contribute to the conservation of critical habitats by helping identify these zones and facilitating the management of PAs. As corroborated by the previous Project, the demarcation process allows for community and inter-institutional participation while increasing peoples' awareness and education about the importance of PAs and natural resource protection in general. 59. It will be important to monitor potential adverse environmental impacts related to regularization processes stemming from essentially unpredictable and diversely motivated behaviors. These may include: (i) legitimizing claims to property in protected and/or critical areas for biodiversity by landholders accelerating land clearance before the arrival of the Project field teams to display the largest possible area under productive use; (ii) newly-titled landowners deciding to clear forested areas in their properties to expand pasture or cropland as they enjoy easier access to credit; and/or (iii) land use disturbance. 60. The EA-EMP includes activities, financial resources, and specific responsibilities to ensure that the above risks are appropriately monitored and mitigated. Mitigation measures, most of which have been included in the project components and activities, include: (i) synchronized sequencing of land regularization activities and related social communication; (ii) outreach activities to avoid premature unconditional titling of lands within PAs; and (iii) environmental educational and awareness raising activities. Moreover, the EMP provides contractually-binding guidance on environmentally-friendly and worker health and safety practices to be observed during the laying out of physical markers for the boundaries of the PAs, and the carrying out of small rehabilitation works for some offices of co-executing agencies. The EMP also provides guidance on any permits that may be necessary for these activities. Importantly, during the demarcation activities, MARENA will implement the Guidelines for Good Environmental Practices developed and implemented during previous Projects. 61. In regards of the environmental management responsibility, the PGR through the Environmental Attorney (Procurador Ambiental), will be responsible for the environmental management during project implementation. The Environmental Attorney, with the support of specific environmental and social specialists, will oversee the cross cutting environmental management and will coordinate with MARENA’s team the demarcation activities of the PAs.

G. Other Safeguard Policies (if applicable) N/A

H. World Bank Grievance Redress

62. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported Project may submit complaints to existing Project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to

16 See: Southgate and Runge 1990; Brown and Pearce 1994; Kaimowitz and Angelsen 1998.


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address Project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/Projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

.

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY : Nicaragua Nicaragua Property Rights Strengthening Project

Project Development Objectives

The Project Development Objective (PDO) is to provide beneficiaries in selected municipalities with: (a) updated and integrated cadastral and property registry information; and (b) improved land administration services.

Project Development Objective Indicators

Indicator Name Core Unit of Measure

Baseline End Target Frequency Data Source/Methodology Responsibility for Data Collection

Name: Parcel-based data identified and linked in the cadastral and property registry modules of SIICAR

Percentage 0.00 50.00 Quarterly

SIICAR and INETER cadastral database

INETER and RP provide information to SMEI

Description: This indicator measures the share of parcels with cadastre and registry information linked through SIICAR based on the total number of parcels surveyed in the departments of León, Madriz, Chinandega, Jinotega, Nueva Segovia, Managua and Estelí.

Name: Satisfactory independent evaluation of SIICAR in terms of operation, data, and security

Percentage 0.00 90.00 Every two years

External Audit

External Auditors and SMEI


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Description: An independent evaluation for SIICAR will be carried out at MTR and end of Project, based on a methodology and terms of reference developed jointly by CSJ and INETER.

Name: Reduction in number of days to complete recording of purchase/sale of a property in the Property Registers with SIICAR

Days 35.00 25.00 Baseline, mid-term and end of project

SIICAR

Consultants and SMEI

Description: This indicator measures the improvement in the time to record property purchases or sales in the departments where SIICAR will be functioning due to the Project. The baseline value will be the average number of days required to complete the recordation of a purchase/sale of a property at the start of the project.

Name: Legal documents issued to project beneficiaries

Number 0.00 105000.00 Quarterly

SILEC/SIIPRO of IP and report of the Property Registry

SMEI receives information from IP and Property Registries

of which, new titles or deeds registered in the Property Registry




of which benefit women or couples jointly





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Description: This indicator measures the total number of legal documents issued to strengthen property rights of rural and urban households under the Project.

Name: Municipalities that manage cadastral information with SISCAT linked to the national cadastre

Number 0.00 19.00 Biannually

SISCAT

SMEI with information from INIFOM

Description: This indicator measures the number of participating municipalities which will benefit from SISCAT (municipal cadastre system) installation.

Intermediate Results Indicators



Name: SIICAR user satisfaction (disaggregated by gender)

Percentage 0.00 75.00 Baseline, mid-term and end of project

Surveys

Consultant and SMEI

Description: Through a survey in the Property Registries, this indicator will measure the level of satisfaction of clients regarding the services provided by SIICAR. The first measurement will be obtained before the SIICAR installation starts in Madriz, Estelí, Nueva Segovia and Jinotega.

Name: Geospatial information databases of INETER integrated under INETER's Spatial Data

Number 0.00 4.00 Baseline, mid-term and end of project

INETER pilot system IDE

INETER reports to SMEI


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Infrastructure

Description: This indicator measures the progress made in making INETER’s SDI operational by monitoring the number of databases integrated with Project support.

Name: Updated and new technical manuals to establish and simplify institutional processes with a focus on gender equity


Approved manuals of INETER, IP and MARENA

INETER, IP and MARENA

Description: This indicator measures the number of key technical manuals related to cadastral surveying, land regularization and protected areas demarcation that will be updated and developed, including a gender focus and reflecting lessons learned from the implementation of new processes such as land regularization from non-reformed parcels.

Name: Strategy and Business Plan for SIICAR completed and adopted by CSJ and INETER

Yes/No N Y Mid-term and end of project

Completed documents

CSJ and INETER

Description: This indicator measures the commitment of CSJ and INETER to ensuring SIICAR’s sustainability by monitoring the preparation and official approval of a medium-term strategy and business plan.

Name: Parcels incorporated into the national cadastre database


National database of INETER

SMEI with information from INETER


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Description: This indicator measures the number of parcels with use or ownership rights recorded in the national database of INETER as a result of Project support.

Name: Area covered by cadastral surveying

Hectare(Ha) 0.00 1100000.00

Quarterly

INETER

SMEI with information from INETER

Description: This indicator measures the area surveyed as a result of Project support.

Name: Mediation agreements pre-qualified as potentially registrable that are formalized in the Property Register

Percentage 0.00 70.00 Biannually

Mediations (DIRAC)

SMEI with information from DIRAC

Description: This indicator measures the effectiveness of alternative conflict resolution by measuring the share of pre-qualified mediations (related to land tenure conflict) as registrable that are used to update cadastral and registry information formally.

Name: Protected Areas that are demarcated and registered in the database of the National System of Environmental Infromation


MARENA database

SMEI with information from MARENA

Description: This indicator measures progress on demarcation of the external boundaries of protected areas located in the participating municipalities.


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Name: Municipalities with technical cadastre certified by INETER/INIFOM


INETER/INIFOM Certification System

SMEI and INIFOM

Description: This indicator measures the number of cadastral units in participating municipalities that meet the requirements established by INETER regarding their capacity to manage cadastres.

Name: Municipal land diagnostics performed


Assessments performed

SMEI with information from IP and INIFOM

Description: This indicator measures the number diagnostics prepared with Project support to understand the land tenure situation related to municipal and ejidal lands and contribute to regularization activities.

Name: Municipalities that incorporate at least 90% of INETER cadastral database into SISCAT

Number 0.00 19.00 Mid-term and end of Project

Municipal SISCAT and INETER cadaster database

SMEI with information provided by INIFOM

Description: This indicator measures the number of municipalities that incorporate the cadastral information generated by INETER to update and increase the information of their fiscal cadastre. This evaluation will be carried out in all the municipalities where the systematic cadastral survey will be carried out under the Project.

Name: Effective resolution of grievances related to the project within an average


PGR Grievance Redress Mechanism

SMEI with information from PGR


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period of five business days

Description: This sub-indicator measures effectiveness of citizen feedback mechanisms established under the Project. It measures the percentage of cases (including complaints and inquiries) that are addressed within an agreed average time period.

Name: Implementation of the Gender Strategy

Percentage 0.00 100.00 Biannually

Report of the Social and SMEI area of PRODEP

SMEI with information of the Social Specialist of PRODEP

Description: This indicator measures the effectiveness of the implementation of the Project’s Gender Strategy by monitoring key aspects, such as: (i) incorporation of the gender focus in the updating / development of technical manuals; ii) women participation in the preparatory activities and public display of results of cadaster surveys; (iii) gender desegregated data in SIICAR.

Name: Baseline, mid-term and final household impact evaluations

Number 0.00 4.00 Baseline, mid-term and end of project

Project files and reports

SMEI with external verification at mid-term and end of project

Description: This indicator measures progress and effectiveness of M&E strategy. Independent consultants will be contracted to carry out the mid-term and final project evaluations.


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Target Values Project Development Objective Indicators FY

Indicator Name Baseline End Target

Parcel-based data identified and linked in the cadastral and property registry modules of SIICAR

0.00 50.00

Satisfactory independent evaluation of SIICAR in terms of operation, data, and security 0.00 90.00

Reduction in number of days to complete recording of purchase/sale of a property in the Property Registers with SIICAR

35.00 25.00

Legal documents issued to project beneficiaries 0.00 105000.00

of which, new titles or deeds registered in the Property Registry 0.00 86000.00

of which benefit women or couples jointly 0.00 50.00

Municipalities that manage cadastral information with SISCAT linked to the national cadastre 0.00 19.00

Intermediate Results Indicators FY


SIICAR user satisfaction (disaggregated by gender) 0.00 75.00

Geospatial information databases of INETER integrated under INETER's Spatial Data Infrastructure

0.00 4.00


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Updated and new technical manuals to establish and simplify institutional processes with a focus on gender equity

0.00 4.00

Strategy and Business Plan for SIICAR completed and adopted by CSJ and INETER N Y

Parcels incorporated into the national cadastre database 0.00 116500.00

Area covered by cadastral surveying 0.00 1100000.00

Mediation agreements pre-qualified as potentially registrable that are formalized in the Property Register

0.00 70.00

Protected Areas that are demarcated and registered in the database of the National System of Environmental Infromation

0.00 8.00

Municipalities with technical cadastre certified by INETER/INIFOM 0.00 21.00

Municipal land diagnostics performed 0.00 15.00

Municipalities that incorporate at least 90% of INETER cadastral database into SISCAT 0.00 19.00

Effective resolution of grievances related to the project within an average period of five business days

0.00 90.00

Implementation of the Gender Strategy 0.00 100.00

Baseline, mid-term and final household impact evaluations 0.00 4.00


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ANNEX 1: DETAILED PROJECT DESCRIPTION

COUNTRY: Republic of Nicaragua

Nicaragua Property Rights Strengthening Project A. Long Term National Program

1. The Government of Nicaragua, with Bank support, has been implementing a long-term national program, which the Project will help advance. Reflecting the government's vision, the program has the overarching goal of continuing to promote land governance and ensuring its sustainability beyond 2030. It will do so through continued support for comprehensive and enabling policies for property rights, while at the same time advancing cadastral coverage, regularizing land rights for Nicaraguans, and improving land administration services. By the end of the Project, it is expected that systematic cadastral surveying and regularization activities would have taken place in all the departments in the Pacific and Central regions (only eight municipalities would be remaining). By 2030 the government is expected to have SIICAR rolled out in 15 economically dynamic departments of the country – a strategic decision for property markets and one that creates the enabling conditions for the necessary revenues for future expansion and maintenance. More than half of the PAs will be demarcated and georeferenced, and the conditions for the use of cadastral and geospatial information at the local and central will be well-grounded. As indicated by Table 1, the Project will contribute substantially to this program and the achievement of its results.

Table 1 – National Land Administration Program (PRODEP)

Indicator Country’s Totals

Other Projects / financing

Land Adm Project (2002 – 2013)

Second Land Adm Project (2013-2020)

Property Rights Strengthening Project (2018-2024)

2025-2030

Departments covered by systematic land titling and regularization (*) (cumulative %)

15 departments

Managua, Masaya,

Carazo y Rivas (12.0%)

Chinandega, Estelí, Madriz,

León (26.7%)

Jinotega, Nueva

Segovia, Granada and

Managua (53%)

Matagalpa, Chontales,

Boaco, and Rio San Juan (80%)

8 municipalities in Matagalpa

and 5 in Río San Juan

Number of surveyed parcels (cumulative %)

1,470,000 379,900 (25%)

367,500 (51%)

248,800 (68%)

106,590 (76%)

140,850 (86%)

Number of municipalities (cumulative %)

153 34 (22%) 41 (49%) 20 (62%)

20 (75%)

13 (83%)

Area with updated cadastre in sq. Km. (**) (cumulative %)

92,200 7,328 (7.9%)

13,420 (22.5%)

7,991 (31.17%)

10,964 (42.70%)

52,767 (57.30%)

Number of regularized land parcels

Unknown n/a 186,109 118 900 95,000

80,000

Number of demarcated PAs (cumulative %)

72 14 (19.50%)

5 (26%)

9 (38%)

9 (51%)


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Indicator Country’s Totals

Other Projects / financing

Land Adm Project (2002 – 2013)

Second Land Adm Project (2013-2020)

Property Rights Strengthening Project (2018-2024)

2025-2030

Number of municipalities strengthened and maintaining cadastral information

153 1 11 (7%)

19 (20%)

13 (28%)

Number of Property Registries modernized and operating SIICAR

17 1 (Chinandega) 5%

2 (Managua and Estelí)

17%

5 (León, Madriz, Nueva Segovia,

Jinotega and Boaco) 47%

7 (Matagalpa, Chontales, Río

San Juan, Rivas. Granada,

Carazo and Masaya)

88%

Demarcation and Titling of Indigenous Territories

Number of titled indigenous territories in the Caribbean Region (cumulative %)

23 territories and 2

additional areas

8 (34.78%)

15 (100%)

(*) Excluding the two autonomous regions in the Caribbean (**) Includes total land area, but excluding the 23 indigenous territories demarcated and titled under Law 445 since they do not require systematic cadastre. The total area of these territories is close to 38,000 sq km -- almost 30% of total land area.

B. Project Development Objective 2. The development objective of the Project is to provide beneficiaries in selected municipalities with (a) updated and integrated cadastral and property registry information, and (b) improved land administration services. In the medium to long term, these outcomes will contribute to the strengthening of property rights, including better tenure security for the poor and vulnerable groups, and more broadly, to the Government’s efforts to improve the investment climate and expand economic opportunities for Nicaragua’s population. C. Project Area 3. The proposed operation will help consolidate the results achieved to date and promote sustainability of results, while expanding key activities into new areas of the country. The program has advanced selectively through the national territory, based on criteria such as economic potential, land tenure issues, levels of land conflicts, and poverty levels of departments and their municipalities. In line with this approach, the Project will focus on (Group A) selected municipalities in the departments of Matagalpa, Boaco, Chontales, and Rio San Juan located in the north and central regions of the country. In these municipalities, the Project will support systematic cadastral surveying and regularization, as well as related activities such as the demarcation of PAs and the strengthening of municipal capacities; and (Group B) selected municipalities and property registries in departments supported by the previous Bank-financed projects, and where systematic cadastral surveying and regularization is well advanced, thus making conditions for expanding the SIICAR in the short term more feasible. In these areas, the Project will support technical activities related to the implementation of SIICAR, data migration, and integration of municipalities into the national cadastre system.


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4. For the new municipalities (Group A), the specific criteria for their selection, which are detailed in the POM, include inter alia: (i) lack of coverage of the cadastre; (ii) volume of demand for legalization and titling of properties by the population residing in rural and urban areas; (iii) level of organization of the municipal cadastre; (iv) levels of land conflict; (v) municipalities with high productive potential; (vi) level of poverty, especially in a municipality’s rural area; and (vii) vulnerability to disaster risks. 5. For the municipalities of Group B, the prioritization criteria include inter alia: (i) municipalities within the jurisdiction of a property registry selected for the implementation of SIICAR; (ii) availability of updated cadastral information; (iii) socio-economic relevance of the municipality; and (iv) level of organization of the municipal cadastre. 6. In relation to the expansion of SIICAR, the government has prepared a Strategy which sets out the selection criteria, including an updated cadastre, a high volume of registry transactions and the potential socioeconomic impact of the investment. In addition to the new property registries selected, the migration of the SIICAR Chinandega to the redesigned SIICAR is also considered. According to these criteria, the Project would support the implementation of SIICAR in six registries, including: Chinandega, León, Madriz, Nueva Segovia, Jinotega and Boaco. In addition, the property registries of Managua and Estelí will continue to be supported to finalize the incorporation and linking of the cadastre and registry data for SIICAR. 7. Table 2 below presents the initial list of selected municipalities based on the above criteria:

ACTIVITIES DEPARTAMENTS MUNICIPALITIES

Cadastral Surveying, Regularization, Titling, and Provision of Cadastral Information.

Group A: 21 municipalities

Boaco 6 Municipalities: Boaco, Camoapa, San José de los Remates, San Lorenzo, Santa Lucía, Teustepe.

Chontales 10 Municipalities: Acoyapa, Comalapa, Juigalpa, La Libertad, San Pedro de Lóvago, Santo Domingo, Santo Tomás, San Francisco de Cuapa, Villa Sandino, El Coral.

Matagalpa 2 Municipalities: Rancho Grande, Río Blanco.

Río San Juan 3 Municipalities: San Carlos, El Castillo, El Almendro.

Group B: 20 municipalities

Nueva Segovia 12 Municipalities: Jalapa, Murra, El Jícaro, San Fernando, Mozonte, Dipilto, Macuelizo, Santa María, Ocotal, Ciudad Antigua, Quilalí, Wiwilí de Nueva Segovia.

Jinotega 8 Municipalities: Wiwilí de Jinotega, El Cuá, San Rafael del Norte, San Sebastián de Yalí, La Concordia, Santa María de Pantasma, San José de Bocay.

Linking of municipal Cadastre (SISCAT) and national cadastre (SISCAF)

Nueva Segovia, Jinotega, Matagalpa, Boaco, Chontales, Río San Juan.

Group A: 14 municipalities - Santa Lucía, Rancho Grande, Río Blanco, San Carlos, Teustepe, San Lorenzo, Boaco, El Castillo, Juigalpa, La Libertad, Comalapa, El Coral, Santo Tomás y Acoyapa. Group B: 5 municipalities -- Quilalí, Macuelizo, San Fernando, Santa María y La Concordia.


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D. Project Components 8. The Project will have five Components: (1) Institutional and Policy Framework and System Integration, (2) Cadastre, Regularization and Titling Services, (3) Municipal Land Administration Services, (4) Project Management, Monitoring and Evaluation, and (5) Contingent Emergency Response Component. Component 1 – Institutional and Policy Framework and System Integration (US$18.75 million) 9. The objective of this Component is to strengthen Nicaragua’s land administration system. This will be achieved by supporting key policy consolidation and inter-institutional coordination and collaboration, and furthering the integration of the cadastre and property registry information and streamlining of processes. As such, it will help expand SIICAR strategically to key property registries, while promoting the use of information beyond cadastre and regularization and the taking of basic steps towards an inter-operable national land information system to which different entities at the national and local level would access as users and producers of information. Overall, activities under this Component will require the provision of technical assistance, training, computer and office equipment (including software, hardware, and licenses), and small civil works. 10. Specifically, Component 1 will comprise the following Subcomponents and activities: 11. Subcomponent 1.1 - Improving land administration policies and interinstitutional collaboration (US$1.23 million) by supporting INETER, PGR, and CSJ, through the following activities:

(i) Development and revision of policies, standards, procedures, and technical manuals. Among others, the Project will support testing and validating of policies to deepen the integration of cadastre and registry information and processes based on tested methodologies. It will also support any required revisions or developing of new policies, standards, procedures and technical manuals to provide an adequate framework for the management of cadastre and registry complementary services, and sustainable inter-institutional coordination and collaboration.

(ii) Carrying out of capacity building and training for the institutionalization of policies and

procedures and improved understanding of the inter-relationship between the cadastre and the property registry institutions.

(iii) Conducting relevant studies institutional, policy, environmental studies to help inform future land

policy and strategy. These studies may include issues such as the legal and institutional framework, environmental and social issues related to land tenure and administration, analysis of factors and incentives for maintaining the formal status of property rights after regularization, and application of geospatial information in disaster and climate change risk management and territorial planning.

12. Subcomponent 1.2 – Strengthening the integration of cadastre and registry information (US$12.75 million) by supporting CSJ and INETER through the following activities:

(i) Implementation of SIICAR and an integrated cadastre-registry management model in selected property registries according to criteria set forth in the POM. Respectively, as per such criteria,


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the Project will initially support SIICAR expansion in the property registries of León, Madriz, Nueva Segovia, Jinotega and Boaco, as well as the migration to SIICAR (from the pilot effort) in Chinandega.

(ii) Migrating and linking of cadastral and registry data in the Departments of Estelí (up to 70 percent of data) and Managua (up to 50 percent of data). SIICAR will be fully implemented under the ongoing Bank-financed land operation in Managua and Esteli, and this activity will help promote sustainability as these are two of the most important registries in terms of transactions.

(iii) Preparing a Change Management and Sustainability Strategy for SIICAR. The government understands the importance of ensuring the sustainability of the investments made already, and that will be made in implementing SIICAR, and the related need for a sound strategy including actions for ensuring technology updating and continuous staff training in INETER and modernized property registries.

13. The above activities will require new hardware and licenses, migrating data, adding more options for various types of land transactions and a data mining function, creating a digital folio for the cadastre linked to successive tract and cadastral regulations, redesigning the software to respond better to institutional requirements and to ensure better maintenance control, and deploying SIICAR in the selected property registries in a secure environment. Overall, these activities will integrate the cadastral information (exact geographical description of a parcel) managed by INETER and the legal information (certainty of ownership and rights) managed by CSJ. In the medium term this integration should promote accuracy and maintenance of property records while making these more readily accessible to the public. 14. Subcomponent 1.3 – Modernizing the national cadastre system and related services (US$4.77 million) by supporting INETER through the following activities:

(i) Implementation of a Cadastre Modernization Strategy focusing on the multiple uses of cadastral information, including at the municipal level, and on its integration with property registry information as well as on overall sustainability – as set out in the POM. A relevant aspect of this strategy is the strengthening of INETER’s national cadastral database through inter alia, the establishment of a system (System C) to keep the information organized, integrated (graphic and alphanumeric), and in compliance with standards and work processes. Moreover, this system will facilitate integration of cadastral information into SIICAR.

(ii) Establishment of six CORS prioritized according to current network needs. The CORS will be located in existing INETER structures, based on the diagnostic of the densification needs of the National Geodetic Network. These CORs will facilitate the geo-reference of field surveys, thus providing services to agencies, firms and surveyors in general. Moreover, coupled with the availability of aerial photography, among other factors, the CORs will help reduce costs and times for field cadastral activities and issuance of cadastral certificates.

(iii) Establishment of Cadastre Offices (Delegaciones) in the Departments of Boaco, Chontales and Rio San

Juan. These regional offices will help implement the Project, and depending on institutional needs in the medium term, some may become permanent after Project Closing.


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(iv) Carrying out of a spatial data infrastructure (SDI) pilot, including: (i) the integration of INETER’s geo-

spatial databases (disaster risk management, territorial planning, geodesy, and cadastre), and (ii) the preparation of a national-level strategy for SDI’s interoperability with other governmental databases (of ministries and entities generating and using geospatial information). This activity represents a first step towards the establishment of a national spatial data infrastructure.

(v) Implementation of a registry, monitoring and quality control system for private cadastral surveyors.

Through this activity, INETER will acquire capacity to support private surveyors within an adequate quality assurance framework, thus fostering better services to the general public in the medium term.

Component 2 – Cadastre, Regularization and Titling Services (US$25.67 million) 15. The objective of this Component is to generate cadastral information, and to help record and clarify land rights through systematic and on demand land regularization, including issuance of legal documents as well as new titles and their registration. To meet its objective, the Component will also support the demarcation of PAs located within the municipalities selected for the systematic cadastral surveying. In general, this Component will finance technical assistance, training, acquisition of aerial photography and equipment, and small civil works related to the demarcation of PAs. 16. Specifically, Component 2 will comprise the following Subcomponents and activities: 17. Subcomponent 2.1 - Expanding cadastral coverage (US$12.19 million) by supporting INETER through the carrying out of systematic and on demand cadastral surveying, including inter alia acquisition of aerial photography, field activities, and incorporating cadastral information into the national database. In addition to regularization, cadastral surveying will generate information for SIICAR implementation and for participating municipalities. As planned, it is expected that the Project will support the cadastral surveying of an area of approximately 11,000 square kilometers and an estimated total of 116,500 parcels in participating municipalities. Surveying and quality control of cadastral outputs will be based on internationally accepted standards, and as tested successfully previously, quality control will be carried out independently by a dedicated unit within INETER. 18. Subcomponent 2.2 – Expanding regularization, titling and registration (US$10.38 million) by supporting PGR, IP/PGR, INETER, and CSJ through the following activities:

(i) Carrying out of systematic land regularization, titling and registration activities in participating municipalities. This activity, which will continue to focus on beneficiaries belonging to the "reformed sector,” will result in the issuing to beneficiaries of legal documents, including new titles and deeds registered in the property registry. To enhance regularization results, the Project will continue to support the legalization of properties in municipal and ejido lands. Moreover, the Subcomponent will also support the legal processes and production of information on government land, among others, under the direct purview of the PGR.

(ii) Carrying out of regularization, titling and registration on a demand basis for selected beneficiaries prioritized by GoN’s pertinent national programs as set forth in the POM. Among the beneficiaries prioritized by government programs, the Project will scale up the on-demand legalization of land


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of small producers not belonging to the reformed sector. In addition to the regular communication activities, a strategic approach to reach out to these potential beneficiaries will be followed, including consultations with relevant organizations and producers’ associations.

(iii) Implementation of the Project’s Communication Strategy, which cuts across project activities. 19. The above activities will be conducted following the methodology and organizational model developed and improved under the previous and ongoing Bank-financed land projects. By providing greater institutional ownership, control and coordination, and streamlining of technical processes, this model has helped to reduce processing times. Regularization will advance almost simultaneously with cadastral surveying. Early demand for titling of properties in participating municipalities where surveying has not yet started will also receive attention. IP's regional offices will conduct controls for parcels’ legal records and pre-diagnostic quality checks. To facilitate implementation, the government prepared a Project's Cadastral Surveying and Regularization Strategy, identifying annual targets. This strategy, which is an annex to the POM, may be updated upon agreement between the government and the Bank. 20. Subcomponent 2.3 - Demarcating PAs (US$2.29 million) in participating municipalities by supporting MARENA and INETER through the following activities:

(i) The carrying out of the demarcation of external boundaries of PAs, including inter alia preparatory work, data collection, consultation of beneficiaries, delimitation, geo-referencing and physical demarcation as well as their registration in the National System for Environmental Information. Based on the initial list of participating municipalities, eight PAs will be included under this Subcomponent for demarcation and one will benefit from the communication and outreach campaigns. The physical demarcation of the PAs will be done with markers (mojones) and the placing of signs in the perimeter and within boundaries of the PA. These activities will be carried out in accordance with the EA/EMP, MARENA's Environmental Guidelines for the Demarcation of PAs, and the Process Framework, to ensure that appropriate measures are taken to prevent, minimize, mitigate and compensate any potential negative environmental and social impacts (considering the potential restriction of access to natural resources). As per the Access to Public Information Law, the information about these areas should be disclosed to interested organizations and the public.

(ii) The carrying out of communication and outreach campaigns around and in PAs and neighboring communities. The campaigns will include, among other relevant topics, basic information about the PA, relevant environmental laws and regulations, direct and indirect benefits of natural resources conservation activities, and recommended land management practices. The campaign will be coordinated with the local family, health, and life councils relevant to the selected PAs.

21. Subcomponent 2.4 – Implementing mediation and conflict resolution (US$0.81 million) by supporting DIRAC under CSJ through the following activities: (i) Provision of mediation services during cadastral and regularization processes. Reflecting the

progress made in alternative conflict resolution, the agreements from mediations that qualify under the law for it will be duly registered in the property registry.


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(ii) Provision of conflict resolution training for mediators and staff of co-executing agencies.

Mediators will be locally selected, in line with the implementation of cadastre and regularization activities, to ensure good knowledge of the local and regional context and culture.

Component 3 – Municipal Land Administration Services (US$2.64 million) 22. The objective of this Component is to strengthen land administration capacities at the municipal level to promote their effective performance in the national cadastral system, as well as their use of information for local planning and fiscal purposes, risk management and overall development. To ensure their effectiveness, the activities under this Component reflect a capacity and needs diagnostic undertaken by INIFOM. In the medium term, this Component will contribute to enhance the impact of cadastre information and the sustainability of cadastral investments. The Component will finance technical assistance, training and provision of equipment and software. 23. Subcomponent 3.1 - Integration of municipalities into the national cadastral system (US$1.70 million) by supporting INIFOM, INETER and participating municipalities through the following activities: (i) Installation of the updated SISCAT in selected municipalities and its integration with the national

cadastral information system, and where applicable, to SIICAR. This activity will allow municipalities to have an improved management of property information for tax purposes, and eventually SISCAT’s interaction with the Integrated Municipal Financial Management System.

(ii) Provision of technical assistance and training to selected municipalities to incorporate cadastral

information into SISCAT and to link SISCAT with the national cadastre system, as well as to prepare them for their eventual role in the maintenance of the national cadastral database. Accordingly, this activity will include the accreditation of technical personnel of participating municipalities based on a methodology agreed with INETER.

(iii) Preparation of procedures and guidelines to define inter alia, the role of municipalities in the

national cadastre system and to strengthen the management of the municipal cadastre. An important aspect of this activity includes the standardization of municipal cadastre maintenance, as well as the simplification of processes critical for the adequate delivery of cadastre-related services.

(i) Preparation of a strategy for the maintenance of cadastral information defining the roles,

procedures and standard processes for managing the municipal cadastral databases linked to SIICAR. The strategy will be based on an analysis of regulations, procedures and other administrative documents, as well as institutional mandates and competencies at the various government levels involved in the national cadastre system.

24. Subcomponent 3.2 - Strengthening municipal capacities for the use of cadastral information for

multiple purposes (US$0.94 million) by supporting INIFOM through the following activities: (i) Provision of technical assistance and training for the use of geospatial information for multiple


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purposes such as disaster risk assessment, investment planning, and territorial development. (iii) Carrying out of analyses of ejido and municipal lands related to the Project’s land regularization

activities. Component 4: Project Management, Monitoring and Evaluation (US$2.94 million) 25. The objective of this Component is to support project administration, and M&E. The PCU established under PGR during the previous project will continue to be responsible for overall project coordination. The Component will comprise the following Subcomponents and activities: 26. Subcomponent 4.1 – Supporting Project Management (US$ 2.52 million) through (i) the provision of training and carrying out of workshops; (ii) the carrying out of the coordination, administrative and fiduciary aspects of the Project, including audits; and (iii) carrying out the oversight of the implementation of a communication strategy and a gender strategy for the Project. 27. Subcomponent 4.2 - Supporting the Monitoring and Evaluation of the Project (US$0.42 million) through: (i) the collection of baseline data to assess the Project’s social, environmental and economic impacts; (ii) the preparation of the Project’s semi-annual progress reports, and the midterm review report and the final evaluation report, including any necessary surveys and data collection activities. Component 5 – Contingent Emergency Response Component (CERC) 28. This Component, without an initial allocation of funds, will provide immediate response to an eligible emergency. In the event of a disaster, and at the request of the government, the Component would finance eligible activities and expenditures through the reallocation of funds from the Project. The CERC Operations Manual, already completed and adopted by the government for the Immediate Response Mechanism (IRM) in Nicaragua, will apply to this Component. This manual includes the financial management, procurement, safeguard and any other arrangements for the CERC to ensure that funds are disbursed in a rapid and efficient manner following an eligible emergency.


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ANNEX 2: IMPLEMENTATION ARRANGEMENTS

COUNTRY: Republic of Nicaragua

Nicaragua Property Rights Strengthening Project Project Institutional and Implementation Arrangements 1. The Project will replicate the implementation arrangements of the ongoing Second Land Administration Project. The PGR will continue to be the implementing agency and execute the Project through its Project Coordination Unit (PCU), known as the Project Executive Secretariat (SE PRODEP). The PCU will continue to be responsible for financial management, procurement, and the management of all Credit funds. The PCU will also be responsible for safeguard compliance, supervision of the implementation of the communication and gender strategies, and monitoring and evaluation (M&E). 2. The PCU will be under the leadership of a General Coordinator, and will also include as its core staff a technical coordinator and specialists in the areas of procurement, financial management, monitoring and evaluation, social development and gender, environment, and communication. The General Coordinator will have the overall responsibility to supervise the PCU staff in their planning, organizing, and executing of all day-to-day administrative, technical, and legal activities of the Project. The Operations Manual includes the PCU's organizational structure and describes the duties and responsibilities of PCU staff along with the Project's technical, administrative, financial, procurement, safeguards, and M&E procedures. 3. The Project Inter-Institutional Project Committee (CIP), chaired by the PGR and composed of senior management of the co-executing institutions, will continue to provide policy and strategic guidance; and the Project Technical Operational Committee (CTO), composed of the Technical Secretariat and coordinators of the Components, will coordinate project activities at the technical level and support the CIP as required. 4. The technical implementation of the Project will remain decentralized through the co-executing agencies: (i) the CSJ, which through the National Directorate of Registries (DNR) and the Directorate of Alternative Dispute Resolution (DIRAC) is responsible for the registration of ownership, mediation of conflicts and the development and implementation of SIICAR – the latter in close collaboration with INETER; (ii) INETER, responsible for the national cadastre and the carrying out of cadastre activities, in addition to monitoring and generating information on natural hazards and spatial planning; (iii) the Nicaraguan Municipal Development Institute (INFOM), responsible for the development of the municipal capacity, including the development of the capacity of cadastral services and the integration with the database of INETER's national cadastre; and (iv) the Nicaraguan Ministry of Natural Resources and Environment (MARENA), in charge of activities related to PAs and raising awareness of environmental sustainability. In addition, (v) the Property Intendancy (IP) participates as agent of the PGR responsible for the processes of regularization and titling of the properties of the reformed sector and the legalization of properties of small holders. Before credit effectiveness, these agencies will sign co-execution agreements by Component with PGR specifying their respective roles and responsibilities under the Project. 5. Before starting activities at the local level, the PGR will sign participation agreements with the municipalities benefiting from the Project. These agreements will describe the roles and responsibilities of the municipalities within the scope of their local competencies.


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6. Table 1 shows the specific role of each agency / entity by Component:

Formal Project Partners Other Partners

Component Co-Executing

Agencies / Entities Local Level

1. Institutional and Policy Framework and System Integration

INETER, CSJ through DNR, INIFOM, and IP-PGR

Municipalities

2. Cadastre, Regularization and Titling Services

CSJ, through DNR and DIRAC, INETER, MARENA, and IP-PGR

Municipalities

Local communities / organizations

3. Municipal Land Administration Services INETER, INIFOM

Municipalities Local communities / organizations

4. Project Management, Monitoring and Evaluation

PGR

Financial Management 7. Overall, the Project will replicate the existing Financial Management (FM) arrangements put in place in PGR-PCU for the implementation of the Second Land Administration Project. Under this second operation, performance of FM arrangements in terms of financial recording system and financial reporting, cash flow, audit arrangements, internal control system and asset management, is considered satisfactory. A FM assessment was conducted the second week of November 2017 and the main conclusions of the assessment are:

• The PGR-PCU as Implementing Agency has in place adequate FM arrangements that meet the Bank's minimum fiduciary requirements to manage the financial activities of the proposed Project.

• The financial management capacity assessment has identified project-specific actions to enable the PGR-PCU to carry out the financial activities of the proposed Project effectively.

• The Project will use SIGAF and SIAFI for budgeting, accounting and reporting purposes, as these systems would provide adequate information for monitoring specific project expenditures and budget execution. The combined use of these systems will allow the proper record and identification of each payment.

• All the project administrative and financial processes would need to be properly described and updated in the POM accordingly.

A. Organizational Arrangements and Staffing 8. Overall project coordination and administration will fall under the PGR through the PCU. The PCU will be directly in charge of financial management tasks, including: (i) budget formulation and monitoring; (ii) cash flow management (including processing payments and submitting credit withdrawal applications to the Bank); (iii) maintenance of accounting records (including the administration and maintenance of an inventory of Project assets); (iv) preparation of in-year and year-end financial reports; (v) administration of underlying information


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systems; and (vi) arranging for the carrying out of external audits. B. Budget Planning 9. Between August and September of each year, the PCU will prepare a preliminary investment program for the upcoming year (including the investment program for the Project) and submit it to the Ministry of Finance (MHCP) for review and approval. The program should be consistent with the budget policy provided by the Ministry, and be incorporated into the national budget send to Congress by October or November each year. 10. On the basis of the approved budget, the PCU will adjust as needed the Project's annual work plan and procurement plan, which will be reviewed and cleared by the Bank. C. Staffing, Accounting and Financial Reporting 11. Staffing. The PCU will maintain the same financial structure and staffing as agreed under the previous project. As currently established, the financial structure provides an acceptable framework, with the staff assessed to be adequate to perform the financial management functions in terms of skills, experience and knowledge. PCU will hire one additional financial analyst to complete the Project’s financial team. 12. Accounting Policies and Procedures. The main financial management regulatory framework for the Project will consist of: (i) Nicaragua's laws governing budget management; and (ii) the POM. Project-specific financial management arrangements that are not contemplated in the general national documents will be described in a concise financial management section of the POM. Among others, specific reference will be made to: (i) the internal controls appropriate for the Project; (ii) the formats of project financial reports; and (iii) the auditing arrangements. 13. Information Systems. Project transactions will be accounted for in SIGAF following the government accounting policies and practices. For the ongoing second operation (IDA 5225 and IDA 6087), the transactions processed in SIGAF are also recorded in SIAFI system that allows classifying expenditures by project Component/cost category and US dollars. It is also used to prepare financial reports and Statements of Expenditure. 14. Financial Reports. On a semester basis, the PCU will prepare and submit to the Bank an unaudited interim financial report (IFR) containing at least: (i) a statement of sources and uses of funds and cash balances; (ii) a statement of budget execution per activities (with expenditures classified by the major budgetary accounts). The interim reports will be submitted not later than 45 days after the end of each semester. 15. On an annual basis, the PCU will prepare project financial statements including cumulative figures, for the year and as of the end of that year, of the financial statements cited in the previous paragraph. These financial statements, once audited, will be submitted to the Bank not later than six months after the end of the government's fiscal year (which corresponds to the calendar year). 16. The supporting documentation of the semester and annual financial statements will be maintained on PCU's premises, and made easily accessible to both Bank supervision missions and external auditors.


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D. Flow of Funds 17. Following the general practice of the current portfolio, the following disbursement methods may be used to withdraw funds from the Credit: (i) reimbursement, (ii) advance, and (iii) direct payment. Two Designated Accounts (DAs) will be opened in the Banco Central de Nicaragua under the name of the Project: (i) one segregated account to be used exclusively for deposits and withdrawals of Credit proceeds for eligible expenditures under Category 1 and managed by the PGR-PCU; and (ii) one pooled account to be used for deposits and withdrawals of the Emergency activities managed by MHCP. After the conditions of Effectiveness have been met, and the Designated Accounts have been opened, the PGR-PCU will submit its first disbursement request to the Association, together with the expenditure and financing needs forecast for the next six months. For subsequent withdrawals, the PCU will submit the disbursement request, along with the supporting documentation (e.g., SOEs) and the updated forecast for the following six months. 18. The Designated Account shall operate under the traditional mechanism of replenishment by the SOE method. Copies of records would be used to support disbursement during the entire execution of the Project. DAs as advances would follow Bank’s disbursement policies and procedures, as described in the Financing Agreement and in the Disbursement and Financial Information Letter (DFIL). Following the current practice, advances made to the DAs would be documented using Statements of Expenditures (SOEs) and supporting documents defined in the DFIL. 19. The ceiling for advances to be made into the DAs would be established in the DFIL. Documentation of eligible expenditures paid out of the DAs is expected to be on a quarterly basis. Funds deposited in the DAs would then be channeled through the Designated Account to an operating account in local currency) following specific arrangements described below, and further elaborated in the POM. Disbursements 20. Disbursement Deadline Date. Four months after the Closing Date specified in the Financing Agreement. 21. The Disbursement Schedule (Table 2) is as follows:

Category Amount of the Financing Allocated (US$)

Percentage of Expenditures to be

Financed

(inclusive of Taxes)

(1) Goods, works, consultants’ services, Non-Consultant Services, Training/workshops and Operating Costs for Parts 1, 2, 3, and 4 of the Project

50,000,000 100%

(2) Emergency Expenditures under Part 5 of the Project 0 100%

TOTAL AMOUNT 50,000,000 100%


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E. Audit Arrangements 22. Internal Audit. During its regular internal audit activities vis-a-vis the institutional budget, internal auditors for the PCU may include project activities in their annual work plans. If such audits occur, the PCU will provide the Bank with copies of internal audit reports covering project activities and financial transactions. 23. External Audit. An external, independent, private audit firm, acceptable to the World Bank under defined Terms of Reference approved by the Bank would be contracted by PGR-PCU for the entire life of the Project no later than six months after the credit’s effectiveness. The audit firm would review and provide an opinion on the Annual Financial Statements of the Project, covering the fiscal year (which coincides with the calendar year). The audited financial statements shall be presented to the World Bank no later than six months after the end of the fiscal period. According to the Bank Policy on Investment Project Financing (IPF), the Audited Financial Statements would be made public, as established in the IDA General Conditions. Financial audit requirements include:

Audit type Due date

Project financial statements June 30

Special Opinions – SOE June 30

Management Letter June 30

Financial Management Action Plan 24. An Action Plan to ensure that adequate FM systems are in place is currently being undertaken:

Table 3: Action Plan for PCU PGR

Action Responsible Entity Completion Date17

Contract individual external audit based on TORs and short list satisfactory to the World Bank for the entire implementation period of the Project.

PCU-PGR Six months after effectiveness

Contract a Financial Analyst based on TORs reviewed by the Bank

PCU-PGR Six months after effectiveness

Provide specific training in FM & Disbursements for Project FM Staff

World Bank Before Project implementation starts

G. World Bank FM Supervision Plan 25. A World Bank FM Specialist will conduct a supervision visit prior to credit effectiveness to verify the implementation of the action plan and review all financial management arrangements for the Project. After effectiveness, the FM Specialist will review the annual audit report, the financial sections of the semiannual IFRs including a monthly reconciliation of accounts, and perform at least one complete supervision mission per year. This supervision strategy will be reviewed periodically and adjusted based on performance and risk.

17 This column presents the estimated completion date, and is not an indication of legal conditions.


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Procurement 26. Procurement will be carried out in accordance with “World Bank Procurement Regulations for IPF Borrowers” (July 2016) (“Procurement Regulations”). A PPSD was prepared by the government describing how procurement will support the PDO and deliver value for money under a risk-based approach. PPSD provides adequate supporting market analysis for the selection methods detailed in the Procurement Plan. Mandatory Procurement Prior Review Thresholds detailed in Annex I of the World Bank’s Procurement Procedure are reflected in the PPSD. All procurement procedures, including roles and responsibilities of different participating entities and units are defined in the POM. 27. The PCU has worked on a full PPSD focused on the high value goods and no consulting services (Aerial photography Boaco RUR/URB; Chontales RUR, Juigalpa URB). Based on the market analysis conducted, the conclusions of the PPSD foresee that procurement processes will concentrate on: (i) the procurement of aerial photography which will use international bidding; (ii) the purchase of vehicles and IT equipment (also international bidding, most likely ending with a local provider); and (iii) low value goods and services to be purchased through national bidding. In addition, the PPSD has identified that most of the individual consultants already hired under the ongoing second land operation will continue under this Project. 28. Procurement Plan. In accordance with paragraph 5.9 of the Procurement Regulations, the World Bank’s Systematic Tracking and Exchanges in Procurement (STEP) system will be used to prepare, clear and update Procurement Plans and conduct all procurement transactions for the Project. The Procurement Plan for the first 18 months was prepared by PGR-PCU in accordance with the initial results of the PPSD. The Borrower has already been trained on how to use STEP. 29. Based on the assessment and the fact that the expected activities: (a) are not complex in terms of procurement; (b) have been successfully implemented by the same team in the ongoing Project; and (c) do not imply major risks, it was determined that the procurement risk is Moderate. 30. WB’s Standard Procurement Documents. Standard Procurement Documents shall be used for all contracts subject to international competitive procurement and those contracts as specified in the Procurement Plan tables in STEP. For procurement involving National Open Competitive Procurement, the Borrower will use Standard Procurement Documents acceptable to the Bank that will be included as Annexes to the Operational Manual. 31. Operating Costs. Operating costs refer to reasonable recurrent expenditures that would not have been incurred by the implementing agency in the absence of the Project. The Project will finance operating costs, such as office supplies, communication and advertising costs, computers and equipment maintenance, per diems for local and international consultants and staff, among other operational expenses. 32. POM. All procurement procedures are described in detail in the manual and agreed with the WB. 33. Capacity assessment. The procurement capacity assessment carried out in November 2017, considering that the PCU is already implementing an operation with the new Procurement Framework, concluded that PCU personnel has the capacity to execute the Project. The PCU will be responsible for all procurement and contracting related queries and processing of the Project, including management and compliance with fiduciary


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requirements. Also, the PCU was in charge of developing the PPSD. 34. In addition to the prior review, the capacity assessment of the implementing agencies has recommended annual supervision missions in the field to carry out the post review of procurement actions. Environmental and Social (including safeguards) 35. The Project has been designed to comply fully with the content and objectives of the relevant World Bank safeguards, which include in this case: Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Forests (OP/BP 4.36), Physical Cultural Resources (OP/BP 4.11), and Involuntary Resettlement (OP/BP 4.12) – specifically regarding the potential restriction of access to natural resources related to the demarcation of PAs. In accordance with the World Bank's Information Disclosure Policy (BP17.50), all the required safeguard documents (detailed below) were disclosed on January 23, 2018, on the World Bank's external website and in-country on the PGR’s website, as well as in PGR's offices in Managua and the regional offices of PGR and INETER. A. Environmental Assessment (OP/BP 4.01) 36. The Project is classified as Category B and required the preparation, Bank’s no objection, and disclosure of a partial EA. Accordingly, the EA was prepared along with its respective EMP. Five consultations were held during the drafting process of the EA-EMP in October 2017 in the Departments of Matagalpa, Chontales and Boaco. A broad range of stakeholders participated in the consultations, including among others, municipal authorities and technical and environmental staff, key agencies’ staff, and representatives of local organizations and civil society. The scope of the EA covered the potential impacts of the cadastral surveying and regularization as well as related activities of the demarcation of PAs. As regards the demarcation, the EA covered 17 PAs to help define the eight PAs that the Project will include. Potential impacts, positive and negative, direct and indirect, were identified and evaluated in the EA through collection of primary data, and the review of technical and environmental information compiled from technical workshops and field visits. 37. It is noted that for Component 5 (Contingent Emergency Response Component or CERC), Nicaragua has prepared, with the Bank’s no objection, a Country-level Environmental and Social Screening and Assessment Framework (ESSAF) that applies to all CERCs across the portfolio. For activation upon an eligible emergency, the CERC falls under paragraph 12 of the IPF Policy related to situations of urgent need or capacity constraints. Any new safeguard issues would be then addressed based on the specific activities to be financed under the CERC, as outlined in the required Emergency Action Plan. 38. With regard to the environmental management responsibility, the PGR, through the Environmental Attorney (Procurador Ambiental), will be responsible for environmental management during Project implementation. The Environmental Attorney, with the support of specific environmental and social specialists, will oversee the cross cutting environmental management and will coordinate the demarcation activities of the PAs with the MARENA’s team.

Expected Positive Environmental Impacts

39. It is expected that in general the Project will have overall positive environmental impacts. Cadastral surveying and the process of land tenure regularization generally induce positive changes to land-use decisions,


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and promote more sustainable land use and natural resources management, and reduce the vulnerability of people to natural events. The land titling process, as part of securing land tenure, incorporates cadastral surveying that helps identify areas that are highly vulnerable to disasters or are ecologically fragile. The Project will encourage these practices, in line with the national legislation. 40. Each of the Project's Components is expected to result in positive environmental impacts. Component 1 (Consolidation of the Institutional and Policy Framework and System Integration) will help improve cadastral services and overall institutional capacity, including piloting an interoperable spatial data infrastructure that will enable better decision making by making available critical territorial, geographical, and disaster risk inputs for environmental sustainability. 41. Component 2 (Legalization, Titling, and Registration of Property) is expected to have the most direct positive environmental impacts. This Component will support the demarcation of PAs located within the municipalities selected for the systematic cadastral surveying and will include preparatory actions, data collection, consultation of beneficiaries, delimitation, geo-referencing and physical demarcation. It will also support communication and outreach campaigns around and in PAs and neighboring communities. Specifically, the Project will finance the demarcation of eight PAs in Matagalpa, Boaco, Chontales, and Rio San Juan (See list below) following MARENA’s Guidelines for Demarcation of PAs, which will be updated to reflect the lessons learned during the previous operations. The Project also supports the maintenance of the demarcation and signage activities, including through the participation agreements to be signed by PGR with municipalities. Moreover, the wider use of GPS systems and satellite imaging in cadastral surveying is precise and efficient as well as environmentally friendly since it makes it unnecessary to intervene in the ecosystem (e.g., by cutting down existing vegetation). These actions aim to ensure the sustainability of the Project’s positive environmental impacts. Table 4 – List of Selected Protected Areas

Department Protected Area (PA)

Boaco 3 PAs: Reservas Naturales Cerro Cumaica-Cerro Alegre, Mombachito La Vieja y Fila Masigue.

Chontales 1 PA: Reserva Natural Serranías de Amerrisque.

Matagalpa 1 PA: Reserva Natural Cerro Musún

Río San Juan

3 PAs: Refugio de Vida Silvestre Los Guatusos, Monumento Nacional Archipiélago de Solentiname y Monumento Histórico Fortaleza Inmaculada Concepción de María.

42. Component 3 will also contribute to positive environmental impacts through the strengthening of municipal capacity for land administration, especially capacity related to promoting a better use of geo-spatial information for local planning and disaster risk management. Some of this information will be generated under Component 2, which includes for instance ortho-photos (from aerial photography) and cadastral maps which will be provided to municipalities.


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Potential Adverse Environmental Impacts 43. No major potential negative environmental impacts are expected from increased land tenure security. Minor works under Component 1 and 2, however, may have some impacts. These works are generally small in scale, temporary, and reversible, but in the case of PAs demarcation could involve cutting down trees and dealing with some construction waste. Any adverse environmental impacts that may arise will be mitigated by the implementation of good environmental and construction practices as well as by continuous supervision of the demarcation of PAs. The “Environmental and Social Guidelines for the PAs Demarcation” developed for the previous land operation will be updated to apply good environmental and social practices during Project implementation. 44. There are also potential adverse environmental impacts which do not relate to physical works, but more broadly, to land use changes and the process of land regularization and titling. Although these impacts have not been an issue under the previous projects, there may be incentives for individuals or groups to take over public, private or PA lands to pressure for land titling. Such actions may have destabilizing effects on society, the economy and the environment. Finally, it is possible that landholders may accelerate land clearing activities in PAs or other forested areas in advance of the Project's surveying and registering activities, to show the largest possible area under productive use. To mitigate these potential impacts, in addition to the implementation of the communication strategy and environmental education campaign, the PGR-PCU in collaboration with the relevant co-executing agencies, will monitor and supervise environmental impacts within the Project area. B. Natural Habitats (OP/BP 4.04) and Forests (OP/BP 4.36) 45. Land regularization, particularly in rural areas, may potentially have adverse impacts for critical natural habitats that include forests. Thus, both the Natural Habitats and Forests safeguard policies are triggered. The nine (9) PAs to be demarcated include natural habitats, although they are inhabited. The Project will not modify the boundaries of these PAs. It is expected that the Project will contribute to the preservation of natural habitats by physically marking these boundaries and updating the areas' cartography with georeferenced records. The Project will not finance infrastructure works inside the PA that could potentially affect natural habitats. Nevertheless, the EA-EMP mentioned before, will include specific screening tools to ensure that potential impacts on natural and critical natural habitats are properly evaluated. 46. The Forests safeguards policy is triggered because the PAs targeted for demarcation are home to forests. However, the Project will not support any forestry (natural or plantation) activity nor the implementation of any Sub-Projects. It is expected that the Project will contribute to the preservation of forests by marking the selected PAs' administrative boundaries on the ground and by updating their cartography with georeferenced records. C. Physical Cultural Resources (OP/BP 4.11) 47. The Project will support conservation of all cultural and archaeological physical resources within the Project area by delimiting any undeclared sites. Activities with potential risks include minor civil works, cadastral surveying, and demarcation of PAs. The Project will abide by national laws and procedures regarding physical cultural resources to address potential "chance finds". In these cases, the exact location of the sites will be given to the Nicaraguan Institute of Culture, which in partnership with the relevant municipality, and per national laws, will decide on the actions and regulations that apply to the protection of the specific physical cultural resource.


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D. Social Assessment 48. A Social Assessment (SA) was carried out to, among other things: (i) analyze the social and cultural context of the departments including new municipalities considered for potential Project area; (ii) identify the presence of indigenous peoples in both urban and rural settings, and their situation in relation to land possession and occupation; (iii) identify the main conflicts regarding land and natural resources, including in PAs; and (iv) assess the capacity and institutional arrangements for dealing with social issues and safeguards relevant to the Project objective and activities. 49. Accordingly, the SA collected primary data through semi-structured interviews of staff of co-executing agencies, focus groups with representatives of indigenous communities, and information and consultation workshops with representatives of non-indigenous communities and small and medium-sized rural producers. The SA was carried out with stakeholders from Boaco, Chontales, Matagalpa and selected municipalities of Rio San Juan. 50. These workshops solicited information from key stakeholders on the current situation of land tenure, their experience with other projects carried out to improve land security, key land-tenure related conflicts, and recommendations and expectations for the Project. The focus groups with Indigenous representatives also solicited information on their history, context, ways of organizing (formal and traditional), their current land situation in relation to their territorial claims, socioeconomic situation, and projects under implementation. For interviews focusing on PAs, the information solicited focused on social actors living in or using PAs, the presence of Indigenous peoples and the administrative, legal and tenure situation of these areas. As the SA corroborated, the Project does not trigger OP/BP 4.10 on Indigenous Peoples. 51. The SA identified several types of conflict over land tenure, which are relevant to the cadastre and land regularization strategy of the Project, as well as its communication strategy. The Assessment made several recommendations, including inter alia: (i) improvement of information and consultation mechanisms with Project beneficiaries; (ii) capacity building regarding land regularization, administration, and management at the municipal level, especially with the Family, Community and Life Committees that are the key social actors involved in front-line Project implementation; (iii) continuing to support a proactive strategy for women’s participation in Project benefits given the inequity currently faced by women producers and their ownership over

lands (22.9 percent of producers are women yet they hold only 13.5 percent of productive land area18); and (iv) taking into consideration the constraints faced by the State in areas of historic conflicts and the challenges to meet the expectations of some groups regarding land claims. The Project's Communication Strategy and Grievance Redress Mechanism will further support communication mechanisms and participatory processes. E. Involuntary Resettlement (OP/BP 4.12) 52. No physical displacement is expected to take place under the Project. OP/BP 4.12 is triggered considering the potential restriction of access to natural resources related to the demarcation of the external boundaries of PAs.

18 Social Assessment, PRODEP III, Box 37 PRODEP III (IV National Agricultural Census. 2011, INIDE)


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53. As regards the involuntary taking of land, and as applied in the previous and similar operations financed by the Bank, the systematic cadastral and regularization activities are considered to be largely outside the purview of OP 4.12 as set forth in footnote 8 of this policy regarding disputes between private parties in land titling Projects. Finally, the small civil works for the renovation of some of the co-executing agencies' offices do not require land acquisition. 54. As required, to address the potential restriction of access to natural resources, a Process Framework was prepared. The Process Framework identifies several likely scenarios under which such restrictions may occur, particularly for people who live within or around PAs. Nevertheless, given that the management of natural resources within PAs allow for the sustainable use of resources, demarcation activities under the Project are not likely to restrict the currently sustainable practices of people living within or around the selected PAs. In line with OP/BP 4.12, the Process Framework describes the participatory process for the identification and mitigation of any potential restriction. Activities include participatory diagnostics, consultation fora, and communication and environmental awareness activities for affected communities. F. Capacity for Safeguard Implementation 55. PGR and co-executing agencies have experience with Bank's safeguard policies relevant to land administration efforts in the country. During implementation of the ongoing land operation, PGR and co-executing agencies have demonstrated their capacity to plan and implement the environmental and social safeguard policies and instruments. Safeguard compliance has been generally satisfactory, and the same team within the PGR-PCU is expected to continue during the proposed project's implementation. Under the previous operations, PGR and co-executing agencies (MARENA in the case of demarcation of PAs) have gained significant experience through, for example, the demarcation of 19 PAs and demarcation and titling of 15 indigenous territories with Bank support, with no apparent negative social or environmental impacts. 56. Regarding the environmental management capacity of the PGR, after several years of experience with the implementation of the Project through its PCU, the PGR assumed direct responsibility for environmental management through an Environmental Attorney (Procurador Ambiental). The Environmental Attorney will be responsible under the Project for cross-cutting environmental management and will coordinate the demarcation activities of PAs with MARENA. For social safeguards, the PCU includes a Social and Gender Specialist who coordinates with regional offices of co-executing agencies such as IP and INETER. There is also a Communication Specialist who facilitates access to information and community outreach. There is agreement that additional social and environmental safeguard specialists may be added to the PCU, if considered necessary during implementation. G. Citizen Engagement & Participation 57. The Project's citizen engagement and participation consultation framework includes outreach activities required to advance cadastral and regularization processes, which are also related to the Communication Strategy and grievance redress mechanism described below. These consultation activities include meetings with local authorities and technical staff, community leaders, and interested organizations. Participation of beneficiaries is critical to gather legal and geographical information on property and to validate it. An important, legally mandated mechanism for this is the public display of information (exposiciones públicas) that is an integral part of the cadastral and regularization process. The Family, Community and Life Committees, which play a critical


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role in these processes, were strengthened under the previous operations and will continue to be strengthened under the Project. 58. In the case of PAs, and other than the Process Framework, the demarcation process starts with consultations with municipalities and other local stakeholders, followed by the selection and hiring of technical services. Actual demarcation is carried out with the participation of local actors associated with the PA. The educational campaign linked to the demarcation is also a useful mechanism to engage stakeholders and promote environmental sustainability. H. Communications Strategy 59. The Project's Communication Strategy has two main objectives: (i) to support the implementation of Project activities, in particular the cadastral surveying and the expansion of conflict mediation services, and (ii) to promote the sustainability of those activities, in particular the maintenance of the cadastre and registry information. In this regard, key audiences include the beneficiaries of the land administration system, and the institutions expected to maintain this system, including the municipalities. Strategy activities, channels, and messaging will be tailored to the information and communication needs of Project activities, as well as to the profile of key audiences. In addition, environmental education plans will be developed and implemented by MARENA to support specifically the demarcation and sustainability of PAs. 60. The Communication Strategy will also seek to promote three cross-cutting aspects: environmental education, gender equity, and transparency and accountability. While the environmental education plans will target primarily the population living within and around the PAs, focusing more narrowly on the importance of natural resource and environmental management and sustainable land uses, the Communication Strategy will seek to raise environmental awareness among Project beneficiaries in general. I. Grievance Redress Mechanism 61. PRODEP III will rely on the Grievance Redress Mechanism established under the previous operation and embedded in the Project Communication Strategy The mechanism features two-way communication channels and processes to allow beneficiaries to seek additional information about the Project and present grievances. It also allows the PCU-PGR to inform beneficiaries about how it is addressing their inquiries and complaints. A variety of entry points and communication channels ensure that the system is accessible by all beneficiaries, regardless of their location or literacy level. The Project's Communication Strategy will inform stakeholders of the existence of this mechanism, its various entry points, and how inquiries and complaints received will be handled by the relevant agencies. 62. The Grievance Redress Mechanism will use and build upon, the institutional Grievance Redress Mechanism of the Executive Branch, which mandates government agencies and state-owned companies to implement mechanisms for receiving and handling complaints and suggestions from the public. In addition, the Project will seek to engage community organizations at the local level to serve as an additional entry point for questions and complaints, and for keeping beneficiaries informed of the way the PCU-PGR is addressing their grievances. Moreover, the results matrix of the Project includes a specific indicator to measure the effectiveness of this mechanism.


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J. Gender Analysis and Strategy 63. In general, Nicaragua’s population and more so women, as in other countries, face two critical issues: access to land (related to land distribution), and access to and control over property rights (related to unclear rights and socio-cultural patterns). The Project focuses directly on the latter, which in the medium to long term could contribute to fostering land access through better land markets and more efficient land uses, for instance. To that end, reflecting the country's gender-sensitive legislation, the Project seeks to benefit women by promoting issuance of titles jointly to couples as well as to female-headed households while raising awareness across key social actors on recognizing and protecting property rights for women and girls. To understand better the gender equity gaps, a Gender Assessment (integrated into the Social Assessment) was conducted during project preparation.19 Specifically, the Assessment analyzes the factors that may enhance or continue to constraint gender equity in strengthening of property rights. It collected primary data through interviews and focus groups with three groups of key informants across the Project area. The main findings of this assessment, as well as an evaluation of the gender strategies implemented under the two previous land operations, both of which informed the Project's Gender Strategy, are presented below. 64. Nicaragua's legislation governing equal access to land and property rights for women and men is relatively progressive. The country has made progress in closing the gender gap, but historical and cultural patterns pose challenges to ongoing and planned efforts, including under the project. At the general level, despite the distributional character of the past agrarian reforms, the Gini coefficient of concentration of property remains high. More specifically, during the agrarian reforms, more than 1.7 million parcels were granted to agricultural cooperatives, but only 10.7 percent of them went to women. By 2011, according to the latest agricultural census, the proportion of women producers had increased to 22.9 percent of individual producers. On average, the presence of women producers grew 6.1 percentage points. However, whereas the women producers in 2011 already represented 22.9 percent of the individual producers, the area that corresponded to them was only 13.5 percent. Reflecting these trends, not only do women have smaller plots in the municipalities selected for land regularization under the project, but they have proportionally less security over the land they work than men do. Historically, women have often been unable to legalize the properties issued under the agrarian reform due to a lack of funds to pay for the registration fee. When facing land conflicts, women have tended to lose for lack of knowledge of their rights, as well as a lack of alternative conflict resolution mechanisms or funds to pay legal costs. Finally, women have not been able to participate as actively in the male-dominated rural land market. Interestingly, while men predominantly access land through the market, inheritance is the most important way for women to access land in Nicaragua, and often to properties lacking formal status. 65. In brief, given the above circumstances, ensuring that women have equal opportunities to benefit from the Project is critical. In addition to paying attention to legal aspects, which in the case of Nicaragua provide an enabling environment, cultural norms should also continue to be addressed, understanding that this is a medium term and transformative process. The Project, for instance, pays attention to raising awareness among male and female beneficiaries, technicians in charge of the cadastre and regularization process, legal professionals, and civil servants, since they may contribute to reinforcing socio-cultural barriers. These activities would be complemented by interventions in processes and information gathering activities, ensuring that potential gender-related biases are dealt with comprehensively (for instance, by understanding gender-based constraints when deciding on the location and scheduling of the public display of cadastral survey results).

19 The Assessment and Strategy are available in Project files.


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66. In addition to the gender assessment, a review of the experience of implementing gender strategies in

the previous land operations concluded, among other things, the following:

• Project staff made substantial progress in the institutionalization of the Gender Strategy, through

practices that have been continuous. They managed to acquire and apply better skills that allow

transmitting the importance of the participation of families from the first contact with the

communities.

• The gender approach applied in the hiring of personnel allowed women to perform high-responsibility

functions within the Project or tasks that might previously have been considered exclusively for men,

including as Component coordinators, group officers, field officers, cartographers, topographers and

mediators.

• The model of complementarity between the components, local governments, project beneficiaries

and other actors, promotes and ensures the effective participation of women and men in the various

actions of the Project with a gender focus.

• The monitoring and follow-up of the indicators of the Gender Strategy allows measuring the concrete

application of the actions of said strategy.

67. Based on the above findings, the Project's Gender Strategy aims to mainstream gender across Project activities, and to empower women beneficiaries by raising their awareness about their property rights. The strategy is based on the following pillars: (i) institutionalization of the Gender Strategy, (ii) strengthening of institutional capacities; and (iii) community communication, awareness and participation. In terms of institutionalization of the Gender Strategy, the Project will, inter alia, update and develop technical manuals that take into account gender equity considerations, promote the increased participation of women in technical roles in the project, and ensure that the Annual Operations Plans are consistent with the overall gender equity vision of the Strategy. Likewise, regarding the strengthening of institutional capacities, the project will finance capacity-building activities at the central and municipal levels that include gender equity modules aimed to, for instance, Project personnel and local government staff to increase their knowledge of the legal framework and their cultural awareness of gender issues. The gender strategy is aligned with the Communications Strategy to ensure that promotion materials, community outreach activities and key milestone steps of the cadastre and regularization process, such as conflict mediations and public display of surveying results, help promote women’s participation and knowledge of their property rights. The Gender Strategy includes specific indicators for each pillar (see table below), while its overall implementation will be monitored through an indicator in the Project’s Results Framework.

Table 5 – Pillars and Indicators of the Project’s Gender Strategy Pillars Indicators

I - Institutionalization of the Gender Strategy

• Project progress reports include update on the specific actions related to the gender strategy by component

• The Annual Operational Plans of the Project includes specific activities and indicators of the gender strategy

• The Project’s Results Framework includes a specific indicator to measure overall implementation of the Gender Strategy, and gender disaggregated monitoring of relevant indicators

• The baseline for the impact evaluation of the project includes gender disaggregated information


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Pillars Indicators

• Updated or new technical manuals include gender equity considerations

• At least 30% of Project personnel is female

II - Strengthening of institutional capacities

• Key staff and Project personnel are trained on gender equity issues in the property rights strengthening process

• Local government staff in selected municipalities are trained on gender equity issues in the property rights strengthening process

• Guidance and field notes on gender equity in cadastre and regularization are produced and disseminated for field staff

• Content developed for the professional curricula of land staff includes gender equity aspects

III - Community communication, awareness and participation

• At least 50% of beneficiaries receiving legal documents are women (either as sole owner or through joint ownership) [Project indicator]

• At least 45% of beneficiaries participating in the community information meetings and the public display of cadastral information are women

• At least 40% of beneficiaries who participate in the training on demarcation of protected areas are women

• At least 40% of members of the committees for the protection and conservation of the selected protected areas are women

• The Communications Strategy is fully aligned with the gender equity vision and approach for the project

Monitoring and Evaluation 68. PGR, through the PCU, will be responsible for monitoring and evaluation (M&E). Accordingly, the PCU will (i) collect, consolidate and report on Project performance data (including physical and financial progress); and (ii) provide periodic information on intermediate Project results and progress toward higher level outcomes. Co-executing agencies will provide the necessary inputs to ensure adequate monitoring and evaluation. The PCU will prepare semiannual progress reports throughout Project implementation. The Project will finance gathering of baseline data to assess social, environmental and economic impacts of key activities, including gender-differentiated impacts. Project indicators and impacts will be assessed in depth during the Mid-term Review and final evaluation, both of which will be carried out by independent consultants. These evaluations will be complemented by a social audit of relevant activities, which will most likely be conducted at the time of the Mid-term Review. The Operations Manual includes the strategy for M&E, covering issues such as the definition of PDO-level and intermediate outcome indicators, instruments to collect information on the indicators, periodicity, and responsible personnel and entities. Role of Partners (if applicable) 69. There is no co-financing or parallel financing for the Project. At present, the Bank is the main partner of Nicaragua in land administration modernization. Preparation of the proposed Project benefitted from technical assistance from FAO. Further coordination with FAO will be promoted during project implementation.


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ANNEX 3: IMPLEMENTATION SUPPORT PLAN

COUNTRY : Republic of Nicaragua

Nicaragua Property Rights Strengthening Project

Strategy and Approach for Implementation Support 1. The strategy for Project Implementation Support (IS) by the Bank reflects the nature of the Project and its risk profile. The strategy aims at making IS to the government more efficient while remaining focused on implementation of the risk mitigation measures identified in the SORT. The strategy is also an indicative and flexible instrument which will be revisited during Project implementation and as part of the Implementation Status and Results Report (ISR) reviews and adjusted based on emerging project challenges and field conditions. 2. Overall Project Implementation. Project supervision will support the following critical areas: (i) fiduciary capacity to ensure adequate internal control systems and overall governance; (ii) technical expertise on cadastral surveying, regularization, titling and registration, dispute resolution, ICT, NSDI, and other land administration functions to support further adoption of good practices and cost-effectiveness; (iii) management of other environmental and social factors in participating municipalities; (iv) communication campaigns to keep stakeholders informed and engaged; and (v) gender strategy to ensure that Project benefits are gender inclusive. 3. Fiduciary aspects. The Bank will: (i) provide implementation support and training as necessary; (ii) follow up on the Project's financial management system and its adherence to the POM, including but not limited to accounting, reporting and internal controls; (iii) provide guidance on Procurement Regulations to the PCU; (iv) review procurement documents and provide timely feedback to the PCU; and (v) help monitor procurement progress against the Procurement Plan. The Bank will ensure proper support is provided to PGR and co-executing agencies on procurement, including specialized IT procurement capacity as needed, either from Bank staff or experienced consultants. 4. Environmental and Social aspects. The Bank will emphasize opportunities for social development and environmental sustainability provided by the Project, as well as adequate attention to gender equity issues. Within this framework, the Bank will help to monitor the implementation of activities and of safeguard instruments. Bank social and environmental specialists will be available to provide timely guidance to PGR and co-executing agencies and will participate in field visits on a regular basis to maintain a good and ongoing understanding of the situation on the ground. 5. Information and Communication. A communications strategy will support the implementation of the Project in its different areas of intervention. The strategy will also seek to support implementation of consultative and accountability processes, including a grievance redress mechanism. Implementation Support Plan and Resource Requirements 6. Task team leadership and technical aspects will be managed from the Bank's office in Washington, in close collaboration with the Country Office in Managua. Implementation support for Project financial management


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will be carried out from the Managua office. International and national consultants will be hired to provide advisory services in specialized land administration issues. Formal supervision and field visits will be carried out semi-annually or as needed to help promote satisfactory project implementation. 7. The main focus of implementation support is summarized below:

Time Focus Skill Needed/Resource Estimate

Partner Role

First 12 months (SWs/year) (days/year)

Technical and procurement review of the bidding documents

Cadastral Survey Specialists 30 days Procurement Specialist 4 SWs

NA

FM supervision FM Specialist 4SWs

Social Development and Gender – Supervision and training

Social Specialist 5 SWs Gender Specialist 2 SWs

Environmental Sustainability and Safeguards – Supervision and Training

Environmental Specialist 5 SWs

Project Management and Communication/Information

Task Team Leader 8 SWs Land Administration Specialist

4 SWs Operations Analyst 4SWs

Months 13-48 (SWs/year) (days/year)

Cadastral surveying and land formalization

Cadastral survey Specialists 30 days Formalization Specialist 30 days Procurement Specialist 3 SWs

NSDI and ICT development NSDI Specialist 4 SWs ICT Specialist 4SWs

Social Sustainability and Safeguards Social Specialist 4 SWs Gender Specialist 3 SWs

Environmental Sustainability and Safeguards

Environment Specialist 4SWs

Financial Management, Disbursement and Procurement

FM Specialist 4 SWs Procurement Specialist 4 SWs

Project Management and Communication/Information

Task Team Leader 8SWs Land Administration Specialist 6SWs Operations Specialist 4SWs

8. Skill mix required is summarized below:

Skills Needed Number of Staff Weeks Number of Trips Comments

Task Team Leader

2/year

Land Administration 3/year

Land regularization, dispute resolution

3/year Should be intense during


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12 – 16/across the Team

the first 2 years

Surveying/mapping 3/year Should be intense during the first 2 years

IT Expertise 2/year

NSDI 2/year For 2 initial years, then 1/year

Procurement Min. two field trips

Financial Management Min. two field trips

Country Office-based

Social Specialist/gender Field trips as required

Environmental Specialist Field trips as required

Communications Specialist 3-5 2/year


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ANNEX 4: INSTITUTIONAL AND LEGAL CONTEXT

COUNTRY: Republic of Nicaragua Property Rights Strengthening Project

A. Introduction

1. The government and the Bank have built a strong partnership over time. The Bank supported the government’s initial efforts to modernize the land administration system, starting with priority issues such as addressing the tenure situation of parcels redistributed as part of the agrarian reform of the 1980s. The post-conflict, post-land reform environment was characterized by massive confiscation/nationalization of urban and rural property, unresolved tenure issues of the reformed sector, destruction of property records, and land claims and conflicts, all of which were contributing to social instability and hindering economic recovery. These early efforts were challenged by competing land policies attempting simultaneously to protect the rights of land reform beneficiaries and to recognize the rights of former landowners. In turn, it became evident that the country needed to establish a suitable land administration framework before a land program such as PRODEP could be implemented countrywide. As a central part of this goal, the government has endeavored to develop and consolidate the necessary policy, legal and institutional framework for the land sector in the country. 2. With the progress made so far, the PGR, as implementing agency, as well as the co-executing agencies that will continue in the implementation of the proposed Project, have at their disposal the required legal and institutional framework to carry out the Project activities and achieve results. The Project will expand activities to selected municipalities in Matagalpa, Boaco, Chontales and Rio San Juan, with a continued focus for the systematic land regularization on properties that were subject to regulation through the Agrarian Reform Laws and other complementary laws, i.e. what is known as the Reformed Sector. Moreover, the Project will also include, on demand legalization for the so-called Non-Reformed Sector, which is characterized by a history of private transaction and an absence of state intervention.

B. Overview of the Institutional Framework 3. Nicaragua’s Land Administration System has achieved considerable improvements in its legal and institutional framework, which will facilitate implementation of the proposed Project. As corroborated by the legal, policy and institutional analyses which were carried out as part of project preparation, there is an adequate legal ground for the implementation of all general processes (cadastral, titling and registry) and for the implementation of SIICAR. In turn, land administration institutions have progressively acquired relatively clear mandates during PRODEP’s implementation. 4. A set of laws approved in recent years has laid the basis for a stronger framework for property rights and their administration. Some of the most relevant include the General Cadastre Law (2004), which provides clear norms and regulations for the establishment, development, maintenance and updating of the National Cadastre. In terms of regularization and titling, the Executive Power Law (290/1998) concentrates competencies on the subject in the Property Intendancy (IP) under PGR. The General Public Registry Law (2009) sets up the legal and institutional basis for a modern property registry service, and mandates the integration of property and cadastral information to ensure the provision of updated and


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accurate records on property rights. The legal framework also provides for specific procedures when establishing and strengthening property rights in special areas such as country borders (Law 749 of 2010), coastlines (Law 690 of 2009), PAs (Laws 217 of 1996 and 647 of 2008, respectively), and indigenous peoples’ territories in the Caribbean (Law 445 of 2003). 5. Table 1 below details the main land agencies / entities in the country and their mandates. All these agencies participate in the Project. Briefly stated, these are: (i) PGR, which is currently the main land agency in the country and implementing agency of the Project; (ii) the Property Intendancy (IP), which is ascribed to the PGR and as such, apart from being in charge of all titling processes, serves a coordinating role for land regularization; (iii) the CSJ, which is in charge of the registration process and alternative conflict resolution; (iv) INETER, which holds general competencies over cadastral processes at the national level; (v) MARENA, which plays a leading role in demarcation of PAs; (vi) INIFOM, which leads the support to the institutional development of municipal governments, including municipal cadastres; and (vii) the municipalities, which in addition to constituting the institutional context where all the cadastral surveying and land regularization process takes place, are responsible for developing and managing their local cadastres and advancing territorial planning.

Table 1 – Nicaragua’s Institutional Framework for Land Administration Agency Pertinent Laws and Regulations Responsibilities on Land Administration

Attorney General’s Office (PGR) [Decentralized agency under the Presidency]

Law 290 of 1998 “Organization, Competencies & Procedures of the Executive Power”.

Law 411 of 2001 “PGR Organic Law”

Decree 19 of 2009 “Regulation of Law 411 of 2001”

Leads the land agenda in the country

Legally represents the Republic of Nicaragua.

Designs and implements Communication Strategy

Property Intendancy (IP) under PGR

Law 290 of 1998 “Organization, Competencies & Procedures of the Executive Power”.

Decree 56 of 1998 “Creation of IP”


Decree 45 of 2002 “De-concentration of IP”

Decree 130 of 2004 “Reestablishment of IP”

Decree 25 of 2006 “Reforms & Additions to Decree 71 of 1998”

Decree 33 of 2009 “Attachment of IP to PGR”

Coordinates the design and execution of national policies related to state land.

Implements agrarian reform.

Appraises confiscated property in order to pay corresponding compensations.

Titling of beneficiaries of agrarian reform.

Regularizes land to implement agrarian reform.

Coordinates indigenous land demarcation and titling.

Supreme Justice Court (CSJ) [Judicial Branch of Government]

Law 698 of 2009 “General Registry Law”

Law 260 of 1998 “Judicial Power Organic Law”


Decree 77 of 2000 “Operative Regulation of Alternative Conflict Resolution Direction

Coordinates and manages the National Registry System.

Manages and oversees the functioning of the Property Registry, decentralized through regional offices.

Develops and implements Alternative Conflict Resolution Mechanisms through DIRAC


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Agency Pertinent Laws and Regulations Responsibilities on Land Administration

(DIRAC)” Law N° 278 on Urban and

Agrarian Reformed Property

Law N° 540, Law of Mediation and Arbitrage of the Republic of Nicaragua

Nicaraguan Institute for Territorial Studies (INETER) [Decentralized entity under the Presidency]

Law 825 of 2013 “Reform to Law 311”

Law 509 of 2004 “General Law on National Cadastre”

Decree 62 of 2005 “Regulation of law 509”

Law 311 of 1999 “INETER Organic Law”


Law 690 of 2009 “Development of Coastlines”.

Law 445 of 2002 “Indigenous People’s Communal Property Regime”

Manages the National Cadastre.

Designs cadastral policies.

Accords procedures to integrate cadastral and registry information.

Provides technical assistance.

Demarcates Environmentally PAs, Indigenous Communities Land, Coastline Areas and Country Border Areas.

Ministry of the Environment and Natural Resources (MARENA) [Ministry under Executive Branch]

Decree 1 of 1994 “Creation of MARENA”

Law 217 of 1996 “General Law on the Environment”

Law 647 of 2008 “Reforms & Additions” to Law 217 of 1996

Decree 01 of 2007 “Regulation of Environmentally PAs”

Decree 26 of 2007 “Reforms & Additions” to Decree 01 of 2007

Regulates and manages environmentally PAs.

Participates in the design of land use regulation.

Participates in the delimitation of Coastline Areas.

Nicaraguan Institute for Municipal Development (INIFOM) [Decentralized entity under the Presidency]

Law 347 of 2000 “INIFOM Organic Law”



Decree 62 of 2005 “Regulation of law 509”

Provides technical assistance to municipalities in order to establish municipal cadastres.

Provides assistance to raise funds to set up municipal cadastres.

Municipalities [Local governments]

Law 40 of 1988 “Municipalities Law”

Law 309 of 1999 “On Regulation, Zoning and Titling of Spontaneous Human Settlements.”


Law 690 of 2009 “Development of Coastlines”.

Regulates urban development and land use

Conducts territorial planning

Manages municipal cadastres

Titling of informal human settlements within their jurisdiction

Manages coastline areas


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Responding to Remaining Challenges 6. Notwithstanding the progress achieved thus far, Nicaragua still has room for finetuning the legal and institutional framework. The proposed Project will help the country continue addressing these challenges, the most relevant of which are:

• Making inter-institutional coordination and collaboration sustainable within the exiting framework adopted by Nicaragua. As in other countries in the region, and after consolidation, Nicaragua has maintained a dual model where cadastre and registry are under the purview of different agencies under different government branches – the executive and the judiciary, respectively. The Project will support the revision, development or consolidation of policies, procedures and technical manuals to help deepen inter-institutional coordination, particularly as it relates to the integration of cadastre and registry information and processes. In parallel to the implementation of the technological platform, an integrated cadastre and registry management model will help solidify the collaborative relationship between the respective agencies.

• Clarifying the role of municipalities and institutionalizing the link with the national cadastre system. Municipalities should be prominent actors in the land administration system and specifically in the management of cadastral information, so as to promote coordination across government levels and ensure the accuracy and sustainability of the national cadastre. One advantage for Nicaragua is that municipalities use the same system for their municipal cadastres, which makes the task of linking these to the national cadastre relatively easier than in other countries. Because of the use of different methods, however, information from the national cadastre in INETER and from municipal cadastres is not always compatible and needs to be standardized. This represents a challenge, not only for the validity of the information of the national cadastre, but also for the final interrelationship that is expected between cadastre and registry information. In this respect, the Project will help clarify the role of municipalities in the national land administration system, while the new cadastre information generated will be transferred to the selected municipalities. Specific procedures and norms will be prepared regarding the role of municipalities along with a strategy for the maintenance of cadastral information, including standard processes.

• Establishing a national spatial data infrastructure (NSDI) to support development policy and decisions. Nicaragua has taken initial policy-related steps towards developing a national spatial data infrastructure. Through the Project, this policy will frame the pilot effort in INTER to develop an SDI by integrating relevant geo-spatial databases. This require developing and implementing a set of technologies, standards, systems and protocols necessary to integrate the selected spatial databases in order to acquire, process, store, distribute and improve the use of geographic information within INETER, and inform the preparation of a national-level strategy. The SDI national-level strategy will define the specifications for the legal, technological, financial and institutional mechanisms that allow the integration, storage, access and sharing of spatial data for users and suppliers in the public sector, commercial sector, NGOs, academia and the citizenry of Nicaragua.

San Benito

El RamaMuelle delos Bueyes

Lagunade Perlas

Kukra HillCorn Island

El Tortuguero

Punta Gorda

Bocana de Paiwas

El Ayote

El Castillo deLa Concepcíon

Prinzapolka

Kukalaya

Leimus

Bonanza

San Joséde Bocay

Rosita

Somotillo

Sébaco

Muy Muy

Rio BlancoEl Sauce

Corinto

Potosi

PuertoSandino

WiwilíQuilalí

San Sebastiánde Yali

Siuna

Karawala

San Juan del Norte

NuevaGuínea

SanMiguelito

Lóvago

Peñas BlancasSan Juan del Sur

Masachapa

Waspán

Matagalpa

Granada

JuigalpaBluefields

Puerto Cabezas

San Carlos

Léon

Estelí

Somoto

Jinotega

Jinotepe

Boaco

Masaya

Ocotal

Chinandega

Rivas

MANAGUA

RIVAS

BOACO

JINOTEGA

REGIÓNAUTÓNOMA DE LA

COSTA CARIBENORTE

REGIÓNAUTÓNOMA DE LACOSTA CARIBE SUR

MATAGALPA

CHONTALES

RÍOSAN JUAN

CARAZOGRANADA

MASAYA

LÉONCHINANDEGA

MADRIZ

ESTELÍ

NUEVASEGOVIA

MANAGUA

EL SALVADOR

H O N D U R A S

C O S T A R I C A

San Benito

El RamaMuelle delos Bueyes

Lagunade Perlas

Kukra HillCorn Island

El Tortuguero

Punta Gorda

Bocana de Paiwas

El Ayote

El Castillo deLa Concepcíon

Prinzapolka

Kukalaya

Leimus

Bonanza

San Joséde Bocay

Rosita

Somotillo

Sébaco

Muy Muy

Rio BlancoEl Sauce

Corinto

Potosi

PuertoSandino

WiwilíQuilalí

San Sebastiánde Yali

Siuna

Karawala

San Juan del Norte

NuevaGuínea

SanMiguelito

Lóvago

Peñas BlancasSan Juan del Sur

Masachapa

Waspán

Matagalpa

Granada

JuigalpaBluefields

Puerto Cabezas

San Carlos

Léon

Estelí

Somoto

Jinotega

Jinotepe

Boaco

Masaya

Ocotal

Chinandega

Rivas

MANAGUA

RIVAS

BOACO

JINOTEGA

REGIÓNAUTÓNOMA DE LA

COSTA CARIBENORTE

REGIÓNAUTÓNOMA DE LACOSTA CARIBE SUR

MATAGALPA

CHONTALES

RÍOSAN JUAN

CARAZOGRANADA

MASAYA

LÉONCHINANDEGA

MADRIZ

ESTELÍ

NUEVASEGOVIA

MANAGUA

EL SALVADOR

H O N D U R A S

C O S T A R I C A

PACIFIC OCEAN

LakeNicaragua

C a r i b b e a n

S e a

LakeManagua

WountaLagoon

PerlasLagoon

BluefieldsBay

PuntaGordaBay

15°N

13°N

15°N

14°N

13°N

12°N12° N

87°W 86°W 85°W 84°W 83°W

86°W 85°W 84°W 83°W

NICARAGUA

0 20 40 Kilometers

0 10 20 30 40 Miles

NICARAGUAPRODEP III PROJECT

PRODEP I AREAS

PRODEP II AREAS

PRODEP III AREAS

TITLING OF INDIGENOUS TERRITORIES UNDER PRODEP I

TITLING OF INDIGENOUS TERRITORIES WITH OTHER RESOURCES

TITLING FINANCED WITH OTHER RESOURCES

PROJECTION 2025–2030 ANDPROJECTION RACCS AND RACCN 2025–2030

IBRD 43495 |FEBRUARY 2018

This map was produced by the Cartography Unit of the World Bank Group. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of the World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries.

Punta GordaPunta GordaPunta GordaPunta Gorda

Bluefields

MAIN CITIES AND TOWNS

DEPARTMENT CAPITALS

NATIONAL CAPITAL

MUNICIPAL BOUNDARIES

DEPARTMENT BOUNDARIES

INTERNATIONAL BOUNDARIES