World Bank Finances Land Administration Project for Guatemala

Contact:  Monica Echeverria-Cota 202 473 1315 
To obtain project documents please contact the World Bank's Infoshop
at tel: 202-458-5454, fax: 202-522-1500, email: Enquiries
 
WASHINGTON, December 3, 1998 — The World Bank today approved a US$31 million loan to the Government of Guatemala to implement the first phase of a program to increase legal security of land tenure and strengthen the legal and institutional framework for land registry services.

This project will regularize land that can be titled in the Petén area of Guatemala, a priority area for the Peace Accords and a mostly rural department where about 60 percent of the population lives in extreme poverty

In Petén, farmers consider tenure security extremely important and cite the need to guarantee their household's source of livelihood, which they see as threatened by the potential loss of land, as a major reason for wanting titles. Increased tenure security of Petén farms is expected to result in improved farming practices, greater incentive for long-term productive investments in land, and reduced environmental pressures. In addition, land records will be made available for land use planning and will contribute to mitigating land conflicts.

"This project will contribute to the alleviation of poverty by providing the basic input for efficient, equitable, and sustainable land management—land rights information and knowledge," says Task Team Leader Cora Shaw. "Property formalization is a crucial part of a broader formalization process in which excluded populations may gain access to greater security, public utilities, and services from the state."

The LIBOR-based, single-currency loan has 20 years to maturity including a 5-year grace period.