Honduras: The World Bank Approves $25 Million For Land Administration In Honduras

Washington, February 26, 2004 – The World Bank approved today a $25 million, zero-interest credit for Honduras to expand access to formal land titling, surveying, registration, and conflict resolution mechanisms, as part of an integrated and decentralized land administration system.

“Improved access to land administration services will allow all Hondurans to consolidate their ownership rights, use their property to raise finance for long-term investments, and ensure the safe bequest of this important asset to their children,” said Jane Armitage, the World Bank's Country Director for Honduras. “In addition, increasing land tenure security will greatly contribute to social stability, sustainable land use, and will address long-standing historical claims by some of the most disadvantaged indigenous and Afro-Honduran communities in Honduras.”

The Honduras Land Administration Program will support an integrated and decentralized land administration system that provides users with accurate information on urban and rural land parcels, as well as effective land administration services in a timely and cost-effective manner. In particular, the project will benefit poor and non-poor urban and rural property owners along the departments of Choluteca, Comayagua, Cortés, and Francisco Morazán and expand access to land titling and administration services to indigenous and Afro-Honduran populations on the Atlantic coast.

The program aims to increase land security, facilitate land market transactions, develop national and municipal territorial plans, and develop management plans for protected areas, forests, and indigenous peoples lands. The project includes three components:

·         Support increased transparency and improved governance of the country’s main land administration institutions by financing preparation of policies and norms, technological development, and institutional strengthening.

·         Incorporate land parcels within the project area into the National Property Administration System (SINAP) by financing pre-field work (such as aerial photography), land regularization, titling, and registration.

·         Ensure efficient administration of the project and effective coordination with other land-related projects in the country through project management, monitoring and evaluation.

It is estimated that only about 30 percent of the 2.6 million land parcels in the country (1.8 million urban, 0.8 million rural) are registered in the property registry. Additionally, the total value of these extra-legal assets is estimated to be $12 billion, which could be used to mobilize credit, reduce stagnation and inequality.

“Through this program, we expect to strengthen the capacity of local level land administration agencies and to increase the access to these services by the majority of Hondurans.  The program will also enhance the transparency to land transactions, expedite conflict resolution proceedings, and facilitate local territorial planning efforts,” said Jorge A. Muñoz, World Bank task manager for the project.

The $25 million credit from the International Development Association is repayable in forty years, including ten years of grace.