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Guatemala: World Bank Approves US$62.3 Million for Land Administration

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Press Release No:2007/179/LAC


In Washington: Patricia da Camara, (202) 473-4019
pdacamara@worldbank.org

 

WASHINGTON, December 14, 2006 The World Bank’s Board of Directors approved today a US$62.3 million loan to increase land tenure security, and strengthen the legal and institutional framework for land registry and cadastre services in Guatemala.

 

Increasing land tenure security, particularly in rural areas, is fundamental for Guatemala’s growth,” said Jane Armitage, the World Bank’s Country Director for Central America.   Given that lack of secure property rights hinders investments and fuels conflicts, better land administration will allow all Guatemalans to consolidate their ownership rights, and use their property to raise finance for long-term investments,” she added.

 

Land is one of the most important resources in Guatemala, but land tenure is often insecure due to unreliable cadastral (exact geographic description of a parcel) and legal (certainty of legitimate owner) information, lack of coordination among land administration institutions, and weak conflict resolution mechanisms. This problem is particularly acute in rural areas, where it is estimated that 40 percent of rural parcels are not registered.

 

The objective of the Land Administration II Project, in support of the second phase of a three-phase Land Administration Program, is to foster the process of achieving land tenure security in seven new departments (Alta Verapaz, Baja Verapaz, Chiquimula, Escuintla, Izabal, Sacatepequez, and Zacapa) and the municipality of Palachum in the Department of Quiche, through the provision of efficient and accessible cadastral and land administration services. This geographical coverage represents roughly 22 percent of the country’s territory, bringing the total coverage from phases I and II to about 50 percent.

 

In particular, the project will finance the following activities:

 

  • Implement the cadastre processes in 55 municipalities of eight departments through participatory approaches and local-level capacity building. This component includes registry research and socioeconomic diagnostic to understand landownership and support fieldwork; social communication; geodetic and mapping activities; systematic parcel-based field surveys; conflict resolution, where necessary; analysis of cadastral and legal information; and the provision of legal titles for properties.
  • Define municipal boundaries and the demarcate protected and public areas, as well as of areas of cultural and archeological interest requiring special protection.
  • Create local capacity to coordinate the cadastre and regularization process in each municipality. This component will support the field survey to keep cadastral information updated and incorporate it into initiatives for local development and territorial planning.
  • Strengthen the legal framework and institutional capacity of the institutions involved in the cadastral and land regularization process, including the Registry of Cadastral Information, so it can efficiently and effectively perform its duties and legal mandates, particularly in terms of coordinating with the General Property Registry to implement the Registry Cadastre system.

 

“The project will develop local land administration services that are more equitable and accessible to the poorest, both in rural and urban areas,” said Frederic de Dinechin, World Bank task manager for the project.This is to be achieved through a participatory process to ensure broad involvement, including historically disadvantaged groups, such as women, indigenous peoples and afro-descendants.”

 

The first phase of the project, which has been under implementation since July 2000 and is expected to close in March 2007, has covered the Department of El Petén, at a cost of US$38 million (out of which the Bank contributed US$31 million). Thus far, the project has been successfully implemented, establishing the institutional and legal foundations for program expansion under the second phase.

 

The new US$62.3 million fixed-spread loan has a reimbursement period of 16 years, including a 6-year grace period. The second phase of the project will be implemented over a six-year period.

 

 

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