Documeut of

The World Bank

FOR OFFICIAL USE ONLY

Repwt No. 11896

PROJECT COMPLETION REPORT

THAILAND

LAND TITLING PROJECT.(LOAN 2440-TB)

NAY 21, 1993

Agriculture and Natural Resources Operations DivisionCountry Department IEast Asia and Pacific Regional Office

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

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

(Baht per US$)

Fiscal Year Exchange Rate

1985 (Appraisal Year) B27.201991 (Completion Year) B25.44

WEIGHTS AND MEASURES

1 rai - 0.16 hectare1 hectare (ha) 6.25 rai

Abbreviations

AIDAB - Australian International Development Assistance BureauBIT - Bangkok Institute of TechnologyDOL - Department of LandsLDD - Land Development DepartmentMOI - Ministry of InteriorNLAC - National Land Allocation CommissionNS2 - Pre-emptive CertificateNS3 - Certificate of UtilizationNS3K - Certificate of Utilization based on aerial photographyNS4 - Title Deed or ChanodCVA - Central Valuation AuthorityOMO - Organization, Management and OperationsPWD - Public Welfare DepartmentRFD - Royal Forestry DepartmentRTG - Royal Thai GovernmentSK1 - Claim CertificateUTM - Universal Transverse Mercator

FISCAL YEAR OF BORROWER

Kingdom of Thailand : October 1 to September 30

FOR OMCIAL USE ONLYTHE WORLD BANK

Washington, D.C. 20433U.S.A.

Office of Director-GeneralOperations Evaluation

May 21, 1993

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on ThailandLand Titlino Proiect (Loan 2440-TH)

Attached is the Project Completion Report on Thailand - Land Titling Project (Loan2440-TH) prepared by the East Asia and Pacific Regional Office with Part 11 prepared by theBorrower.

Starting in hilly areas of the north and northeast, and in Bangkok and other cities,the project mapped and valued land, adjudicated claims, and issued more than 2 million titles.On the whole, implementation was prompt and effective. Technical assistance worked well.The project was well monitored.

A socio-economic survey found that, compared to control areas, titled landholdersinvested more, their land value increased, and government collected more land tax.

The otherwise excellent PCR did not estimate an economic return. However, thereis little doubt that the project outcome was satisfactory, that institutional development wassubstantial and that sustainability is likely.

The titling program is being pursued with Bank financing. No audit is planned.

Attachment

This documant has a restricted distibuton and may bo used by recipients only In the performanca ofthei offcldi dutes. Its contents may not othrwise be disdosed without World Bank authoizaion.

FOR OFFICIL USE ONLY

PROJECT COMPLETION REPORT

THAILAND

LAND TITLING PROJECT(Loan 2440-TH)

TABLE OF CONTENTS

Page No.

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Evaluation Summary .... . . . . . . . . . . . . . . . . . . . iii

PART I PROJECT REVIEW FROM BANK'S PERSPECTIVE

Project Identity . . . . . . . . . . . . . . . . . . . . .1Background .1... . . . . . . . . . . . . . . . . . . . .Project Objectives and Description . . . . . . . . . . . . 2Project Design and Organization . . . . . . . . . . . . . 3Project Implementation . . . . . . . . . . . . . . . . . . 4Project Results . . . . . . . . . . . . . . . . . . . . . 5Project Sustainability . . . . . . . . . . . . . . . . . . 13Bank Performance . . . . . . . . . . . . . . . . . . . . . 13Borrower Performance .... . . . . . . . . . . . . . . . 14Project Relationship .... . . . . . . . . . . . . . . . 14Consulting Services .... . . . . . . . . . . . . . . . 14Project Documentation and Data . . . . . . . . . . . . . . 14

PART II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE

Comments on Part I . . . . . . . . . . . . . . . . . . . . 15Bank Performance .... . . . . . . . . . . . . . . . . . 16Borrower Performance .... . . . . . . . . . . . . . . . 16Lessons Learned . . . . . . . . . . . . . . . . . . . . . 18

PART III STATISTICAL INFORMATION

Related Bank Loans .... . . . . . . . . . . . . . . . . 21Project Timetable . . . . . . . . . . . . . . . . . . . . 22Loan Disbursements .... . . . . . . . . . . . . . . . . 23Project ImplementationA. Key Indicators . . . . . . . . . . . . . . . . . . . 24B. Title Deed Production and Distribution . . . . . . . 25C. Production Data . . . . . . . . . . . . . . . . . . . 26D. Changes in Output Rates (per year) . . . . . . . . . 26E. Training . . . . . . . . . . . . . . . . . . . . . . 27F. Technical Assistance - Training . . . . . . . . . . . 28G. Technical Assistance - Advisers . . . . . . . . . . . 29

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

Page No.

Project Costs and FinancingA. Project Costs . . . . . . . . . . . . . . . . . . . . 30B. Project Financing . . . . . . . . . . . . . . . . . . 31

Project ResultsA. Direct Benefits . . . . . . . . . . . . . . . . . . . 32B. Financial Impact ... . . . . . . . . . . . . . . . 32C. Studies .... . . . . . . . . . . . . . . . . . . . 33

Status of Covenants .... . . . . ..... . . . . . . 34Use of Bank Resources . . . . . . . . . . . . . . . . . .

A. Staff Inputs .... . . . . . . . . . . . . . . . . 35B. Missions .... . . . . . . . . . . . . . . . . . . 36

MAP IBRD 17228R

i -

PROJECT COMPLETION REPORT

THAILAND

LAND TITLING PROJECT(Loan 2440-TH)

PREFACE

This is the Project Completion Report (PCR) of the Land TitlingProject (LTP) in Thailand, for which Loan 2440-TH in the amount of US$35.0million was approved on June 12, 1984. The Loan was closed on March 31, 1992,after a 6-month extension. The final disbursement was made on July 31, 1992 andan undisbursed balance of US$1,366,010.05 was cancelled. The AustralianInternational Development Assistance Bureau (AIDAB) financed technicalassistance, human resource development and studies in the amount ofAUD10,853,250.85 on a parallel basis.

Parts I and III of the PCR are based on the findings of a World Bankmission that visited Thailand in June 1992 and on a Project Completion Reportprepared by the Department of Lands, the implementing agency. It incorporatesinformation obtained from the Staff Appraisal Report (Report 4627-TH) dated May18, 1984; the Loan Agreement dated October 11, 1984; the Bank's SupervisionReports and project files; field visits to selected project sites; discussionswith the Borrower's project staff and AIDAB project advisers; and interviews withstaff of Government Departments, including the National Economic and SocialDevelopment Board and the Fiscal Policy Office of the Ministry of Finance. PartII was prepared by the Department of Lands.

The Bank wishes to thank officials of the Borrower and AIDAB'sproject advisers for their valuable assistance in preparing this PCR.

- iii -

PROJECT COMPLETION REPORT

THAILAND

LAND TITLING PROJECT(Loan 2440-TH)

EVALUATION SUMMARY

Oblectives

1. The project aimed at implementing the first 5-year phase of a 20-yearnational land titling program and rationalizing cadastral mapping anddocumentation for the compilation of a national cadastre. The project was to beimplemented by the Department of Lands (DOL) in nine provinces through: (i) anaccelerated program of cadastral rural mapping; (ii) an accelerated program ofcadastral urban remapping; (iii) a land administration improvement program,including the issuance of title deeds and decentralization of the land registerfrom provincial to branch level; (iv) strengthening of the Central ValuationAuthority; and (v) general institution building. Cofinancing was provided by theAustralian International Development Assistance Bureau (AIDAB) on a parallelbasis for technical assistance and training.

Implementation Experience

2. Project implementation took over six years, against the five yearsplanned at appraisal. The Bank loan was closed on March 31, 1992, after one 6-month extension, and an amount of US$1,366,010.05 was cancelled from the loan.The loan closing date was extended to enable completion of the contracts foraerial photography and socio-economic impact studies. Proceeds from the loanwere reallocated during implementation to enable the financing of a greater shareof incremental costs of field operations.

3. Project implementation was generally smooth. Except for someprocurement delays and weaknesses in coordination and planning, relatively fewproblems were encountered. Allocation of government resources to the project wasadequate.

4. Delays in the procurement of aerial photography resulted in fullphotomap production being reached only in the third year of the project andaffected cadastral mapping. Similarly, the late procurement of the automated maptransformation equipment affected the computer conversion of Certificates ofUtilization based on aerial photography (NS3K), requiring DOL to put moreemphasis on field adjudication to complete the land titling program. Thesedelays were caused by difficulties in the technical evaluation of bids and wereresolved by replacing the system of evaluation on the basis of price alone to amerit point system. The Organization, Management and Operations (OMO) studyaimed at improving DOL's management and procedures was completed on time, and the

- iv -

main recommendations were adopted by DOL. The technical assistance and trainingactivities were implemented on schedule.

5. The Land Titling Project Office, set up in the Planning Division ofDOL to coordinate, plan and monitor project implementation, faced some problemsin performing these functions due to the junior level of its staff.

6. The project has substantially achieved its overall originalobjectives. However, it is too early to evaluate the socio-economic impact asmost title deeds have been issued only in the past two to three years. Theinstitutional development of DOL has been slower, although a substantial trainingprogram has been implemented. The decentralization of land administration tobranch office level has been successful, providing the public with moreaccessible, timely and effective land administration services. The CentralValuation Authority has been strengthened, and Government revenues from landtransactions have considerably increased as a direct result of the project.

Results

7. The survey and cadastral mapping components exceeded appraisaltargets. Cadastral mapping has been completed over the entire project area. Atproject completion, some 2,010,764 title deeds were produced, or about 79I of thecurrently estimated total number of eligible parcels in the project area (thetotal number of eligible parcels was not accurately known at appraisal as onlya gross method of estimation was then available). The eligible parcels not yetissued with title deeds include those in fringe forest areas where the forestland classification is unclear, held by families where the owner of landdocuments is deceased and inheritance is not resolved, where the holder wasabroad or could not be contacted, whose holder could not prove eligibility asrequired by the Land Code, urban land parcels with no documents at all andparcels in widely dispersed areas where DOL considered systematic adjudicationto be too inefficient.

8. The lack of a reliable data base affected the planning of projectactivities, which had to be based on output rates of field adjudication teams.The number of field teams had to be continually adjusted in response to parcelconcentrations encountered in the different areas. While the teams visited everyparcel in the project area, title deeds were not prepared for those parcels whichcould not be adjudicated readily during the team's presence in the area. Theseparcels were left for adjudication at a later stage. This approach inevitablyresulted in a number of eligible parcels in cadastral maps left without titledeeds at project "completion".

9. The percentage of eligible parcels that have not been issued withtitle deeds under the project is at an acceptable level by international normsfor systematic adjudication. For this project, systematic adjudication hasproved to be a cost-effective way of providing a land titling service to thegeneral public. The costs of surveying and issuing titles to individual parcelsoutside this system would be several times higher.

10. Not all the title deeds produced under the project have beendistributed to project beneficiaries due to problems of planning and resource

v

allocation to land offices. As end of 1991, 77% of the completed title deeds hadbeen distributed, and DOL approved an action plan to complete distribution of theremaining titles by the end of 1993.

11. The decentralization of the land register from provincial to branchland office level was completed with the establishment of 60 fully operationalbranch land offices out of the 62 identified at appraisal. These branch landoffices can perform all land administration functions, including those that couldpreviously be carried out only by provincial land offices. Thus, the generalpublic now has ready and close access to land administration services, includingsurveying, title deed preparation, and land transactions.

12. Technical assistance, focusing on new technology introduction,institution building and studies, was successfully completed. The fellowshipprograms for the training of surveyors and valuation staff were also completed.

13. The direct impact of the project has been the provision of titledeeds to a large number of eligible land owners in the project area. Althoughit is too early for the full economic impact of land titling to be felt,preliminary results of the on-going socio-economic studies indicate a significantincrease in land prices due to titling. In both project and non-project areas,land prices were directly related to the level of security of the land documents.Titling also resulted in easier access to and increased levels of commercial banklending. Total farm assets also increased substantially as a result of theproject. Completion of the studies undertaken in 1992 should yield more specificquantitative data.

14. The fiscal impact of the project was larger than expected atappraisal. Transfer fee collections, which had remained stable at about Baht 2billion in 1984-86, were originally expected to remain at the 1986 level in 1987and to increase by a further 10% in 1988. Instead, collections in 1988 and 1989increased by 173% and 239%, respectively, in constant dollar terms over 1986.With the impact of Thailand's economic boom experienced over the project yearsnetted out, the increase in collection was 14% to 278% higher for project areasas compared with non-project areas. This can be attributed to two factors: (a)issuance of title deeds under the project; and (ii) adoption of more up-to-date(higher) property values for assessing the transfer fee, "profit tax", and stampduty levied by DOL.

Sustainability

15. The project has successfully established a decentralized andoperational land administration capability supported by a cadastral framework andtitling program in the project area. Land administration has been rationalized,allowing the Government to maximise fiscal revenues from land transactions usingup to date property taxation data. The education and training programimplemented under the project has produced numbers of trained personnel for thewide range of skills needed by DOL. In particular, the technical innovations insurveying and mapping can be fully sustained without further assistance fromexternal advisers. The program launched under the project is being continuedunder the follow-on Land Titling II Project (Ln. 3254-TH).

- vi -

Findings and Lessons Learned

16. The main findings are:

o The project has substantially achieved its original objectives ofcadastral mapping, land titling, institution building and improvingland administration services to the public.

O Original parcel statistics from land offices were of variablequality, mainly due to poor records and lack of information onundocumented parcels. This affected planning.

O The systematic adjudication approach used under the project wasappropriate and a cost-effective way of providing titles to largenumbers of land owners. However, it left behind a number ofeligible parcels which could not be readily issued with titles andthis had to be undertaken separately at higher cost.

o Technological innovations in surveying, mapping, supportingcomputerization, and land administration have been adopted on asustainable basis.

o Decentralization of land administration is complete, except forfurther minor needs for staff, equipment and recurrent budget.However, branch land office opening was not well synchronized withstaff and budget allocations and workplans.

o Land administration services to the public have been made moretimely, accessible, and effective, but more improvement is requiredin the timeliness of surveying and titling services.

o Organizational changes have been completed on schedule, butinstitutional development change has been slower. In particular,the formulation and implementation of staff development policiesrewarding technical skills and performance have been slow.

O The project design focussed on technology and institution buildingand inadequately addressed policy issues, including:

(a) provisions in the Land Code which restricted the scope offield adjudication;

(b) lack of national policies to address land use, landclassification and boundaries of forest and pro-reserve forestland and land reform areas; unclear responsibilities of theRoyal Forestry Department, Land Development Department andDOL, and lack of mechanisms for cooperation between theseagencies; and

- vii -

(c) lack of policies at DOL level for:

* personnel career development and deployment; staff were,in fact, penalized while on fellowships as the studyperiods did not count in the time of service; deploymentof trained staff was on an ad hoc basis; and

* titling of parcels not completed during adjudication.

O The lack of a single work unit at DOL headquarters to manageprovincial and branch land offices affected the efficiency oftheir operations.

O Titling increased land prices, access to rural credit, andfarm assets. Fiscal revenues from land transactions were alsosubstantially increased.

17. The most important lessons are:

o For systematic title adjudication, national land use andclassification policies must be addressed *in an integratedmanner before project implementation (PCR, para 4.3).

3 The provincial and branch land offices need to be integratedwithin the management structure of DOL with clear lines ofauthority and reporting (PCR, para 4.5).

o Reliable land parcel statistics are needed to provide a soundbasis for planning (PCR, para 5.3).

3 Sustainability of technical change requires parallelinstitutional change (PCR, para 6.13).

o Human resource management is a key aspect of institutionaldevelopment. Incentives for career advancement andimprovement must be provided to staff to enhance their skillsand to retain them in the positions for which they are trained(PCR, para 6.13).

PROJECT COMPLETION REPORT

THAILAND

LAND TITLING PROJECT(Loan 2440-TH)

PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE

1. Prolect Identity

Project Name : Land Titling Project

Loan No. Ln. 2440-TH

RVP Unit : East Asia and Pacific Region

Country Thailand

Sector : Agriculture

2. Background

2.1 At the time of project appraisal in 1983, less than 13% ofagricultural land was estimated to be documented by title deed. Most of theagricultural land was either undocumented, or covered by a number of pre-ownership certificates issued by several Government agencies, including a Pre-Emptive certificate (NS2), a Certificate of Utilization (NS3), and a Certificateof Utilization based on aerial photography (NS3K). This situation contributedto a number of well recognized problems, including:

(a) increasing numbers of landless people and tenants, especially in ruralareas;

(b) increasing encroachment of forest reserves and environmentaldegradation ranging from soil erosion to loss of forest cover;

(c) lack of secure tenure for many genuine land owners; and

(d) high rate of squatter settlement in rural and urban areas.

2.2 In 1980 an awareness of the potential seriousness of inadequate landtitling in Thailand led Government to set up a land policy subcommittee of theNational Rural Development Committee. This subcommittee commissioned a landpolicy and use study which recommended, Inter alia, an acceleration of theissuance of secure rights to land, a general improvement in the mode of operationof DOL and a rationalization of the entire approach to land rights documentationand administration.

- 2 -

2.3 The Fifth National Economic and Social Development Plan (1982-1986)supported the implementation of the recommendations of the land policy and usestudy. The main objectives of the Plan for agriculture and the rural sector wereto alleviate rural poverty and redress regional income disparities, and toincrease agricultural productivity while avoiding deterioration of theenvironment. This was to be achieved by improving rural infrastructure and byimplementing a land use and incentives policy to promote agriculturalintensification. A key element of the policy was the issuance of title deeds toall legitimate occupiers of land in the country through the implementation of anaccelerated land titling program. This program included surveying, cadastralmapping, field adjudication of undocumented parcels and conversion of pre-ownership certificates to title deeds (chanods or NS4 documents). The LandTitling Project (LTP) was proposed as the first phase of this program.

3. Prolect Obiectives and Description

3.1 The project aimed at implementing the first 5-year phase of a 20-yearnational land titling program and rationalizing cadastral mapping anddocumentation for the compilation of a national cadastre. This was to beachieved by integrating cadastral mapping into the national mapping grid,converting land documentation into one uniform and simplified system, increasingDOL's capability to accelerate its rate of issuance of title deeds, andimplementing a systematic field adjudication program. The land register was alsoto be decentralized from provincial to branch land office level to improve thequality of land administration services to the public.

3.2 The project, which was to cover the city of Bangkok, four provincesin the northeast region (Nakhon Ratchasima, Buriram, Surin and SiSaKet Provinces)and five provinces in the northern region (Chiang Mai, Mae Hong Son, Phayao,Chiang Rai and Lamphun Provinces), was to support:

(a) an accelerated program of improved cadastral rural mapping;

(b) an accelerated program of improved cadastral urban remapping;

(c) a land administration improvement program to include adjudication andissue of full title to undocumented lands or lands held under varioustypes of pre-ownership certificates, decentralization of the landregister from provincial to branch land offices to be establishedunder the project, and improvement of the physical facilities of landoffices outside the nine project provinces;

(d) strengthening of the Central Valuation Authority (CVA); and

(e) general institution building, including strengthening of DOLorganization, provision of technical assistance and human resourcedevelopment.

-3-

4. Prolect Design and Organization

4.1 The project concept was clearly understood by all parties. Coming outof the recommendations of the land policy and use study commissioned byGovernment for the rationalization of land ownership, the project was consistentwith Government's plans to address land use issues. The project also providedcontinuity to World Bank support to Thailand under two Structural AdjustmentLoans for the issuance of usufructuary licenses to approved occupiers of land inselected areas of forest reserves reclassified as suitable for agriculture.

4.2 The project design focused on the introduction of new technology andissuing title deeds to nine provinces. It provided for an Organization,Management and Operations Study (OMO, paras. 6.20-6.22) which would reviewinstitutional issues and make recommendations to DOL on addressing them. The newtechnology included surveying and mapping, valuation, computerization andsystematic field adjudication. The selection of only nine provinces as theproject area was appropriate due to the scarcity of these new technical skillswithin DOL and the prior need to train staff in these skills to implement theproject. These provinces also represented a mix of conditions which allowed suchissues as poverty alleviation and market development to be appropriatelyaddressed. The project was timely due to increasing population and the need toincrease investment in land and raise land productivity.

4.3 As the project was principally concerned with private lands, theproject design did not address public land issues concerning the boundaries offorest reserve and pre-reserve forest, land reform and other land settlementareas, and the roles and responsibilities of agencies such as the Royal ForestryDepartment (RFD) and the Land Development Department (LDD) in these respects.The lack of clarity over forest reserve boundaries affected the efficiency offield adjudication and has resulted in a number of eligible parcels near forestand settlement areas being left out of the adjudication process.

4.4 The project design did not also sufficiently address some Land Codepolicy issues. While the Code provided an adequate overall policy and legalframework for project implementation, some provisions of the Code restricted theimplementation of field adjudication in certain situations. In particular, theCode provided no policy guidance on how to handle absentee landlords, whichresulted in untitled parcels. The role of District Chiefs (Nai Amphur) in theLand Code was also not addressed. Their continuing role in land administrationconstrained DOL's ability in the early stages of project implementation torationalize branch and district land office operations by preventing theintegration of these operations. This issue was resolved later during projectimplementation.

4.5 The lack of a clear management structure within the DOL hierarchy forprovincial and branch land office administration and operations was a projectdesign shortcoming. A high level single work unit or authority was required atheadquarters to manage provincial and branch land offices. However, the OMOstudy did address this issue.

4.6 Proiect Orxanization. The multi-tiered project organization plannedat appraisal worked satisfactorily. At the highest level, a Project ExecutiveCommittee, including representatives of different Government ministries andchaired by a Deputy Permanent Secretary of the Ministry of Interior, was

- 4 -

responsible for policy direction and coordination. During projectimplementation, this Committee could have been used more effectively to identifyand resolve policy issues. Within DOL, the Project Administration Committee,chaired by the Project Director (DOL's Director General), was responsible foroverall project planning, implementation and monitoring. Both committees werewell supported by the Land Titling Project Office (LTPO), which was specificallyset up as a section of the Planning Division of DOL for this purpose. LTPOplayed an important part in project management but its effectiveness appears tohave been affected by the junior level of its staff and their temporary statusin the Civil Service.

5. Prolect Implementation

5.1 Project implementation was judged by DOL to be completed in September1991, about a year behind the schedule at appraisal of September 30, 1990. DOLconsiders titling activities to be complete in a province when: (a) title deedshave been issued to all the legitimate parcels with appropriate documentation;(b) the remaining eligible parcels have been identified; and (c) clear policydirections and an implementation plan have been determined for the completion oftitling for these parcels. This definition was considered to be reasonable forthe systematic adjudication process being implemented under the project.

5.2 The project was implemented according to the original design.However, this visible success of project implementation was achieved withproblems in work coordination and planning. There were instances where titledeeds were being produced for areas where offices were not yet constructed,resulting in tens of thousands of title deeds piled up in the provincial officewith no staff to distribute them or space enough to store them. Apart from thestresses this caused in the provincial offices, more significantly it caused longdelays (up to one year) in distributing title deeds to the project beneficiaries.The situation could have been improved by improving coordination and assigningresponsibility to one unit at the central level for all matters concerning branchland office establishment. During implementation, such matters were managed byworking committees representing several divisions. This system did not worksatisfactorily.

5.3 The appraisal estimates for the number of undocumented and otherparcels were greatly in excess of current estimates. However, in most countries,the estimation of undocumented parcels in a jurisdiction is very difficult.Several approaches are possible: (a) by subtraction, where the totaladministrative area, less the area covered by existing records for forest, publicand private land is divided by some estimate for average parcel size; (b) by theuse of census information correlated to existing land records; (c) by inquirythrough the local administrative network; or (d) by a combination of the above.There are difficulties with all these methods. However, the subtraction methodwhich was used at appraisal has the following problem: it does not recognizeareas where documents cannot be issued for a number of reasons (land used forpublic purpose, land not occupied, occupier does not satisfy legal eligibilityrequirements, land not eligible for documentation, etc.) and which are numerousin the project area. To illustrate this problem, the appraisal estimate forundocumented and NS3 parcels in Mae Hong Son Province was 774,471, while only atotal of 8,620 new titles were issued under the project. The lack of realisticestimates has constrained DOL's ability to plan and coordinate the various

technical processes involved in the land titling program. Adjudication partieshad to frequently readjust their workplans and move around according to theconcentration and types of parcels encountered in the field.

5.4 Procurement delays affected project implementation. Aerialphotography was delayed over a year and, as a result, full photomap productionwas not reached until the third year of the project. Similarly, procurement ofthe automated map transformation equipment was delayed for nearly two years.This affected the NS3K certificate conversion program which relied on the use ofthe equipment. However, this problem was compensated by the fielding ofadjudication teams from project year 1, instead of project year 3 as scheduledat appraisal. The procurement problems arose when the technical responsivenessof bids for sophisticated equipment was unclear and bid opening committees foundit difficult to reach a consensus on the acceptance or rejection of borderlinecases (contracts were awarded to responsive bids on the basis of lowest price).The subsequent change under the project to a merit point system that awardedpoints also for technical merits and servicing support eliminated this problem.According to the Loan Agreement, international competitive bidding (ICB)procedures had to be followed for contracts estimated to cost above US$250,000,even though local competitive bidding would have been more appropriate in somecases. In many such cases only local firms submitted bids. ICB proceduresinvolved substantial additional work for DOL for translation and also took moretime.

5.5 Project implementation was facilitated by amendments to the Land Codein 1985 allowing office conversion of NS3K certificates to title deeds andfacilitating certification of new title deeds. The scope of the OMO study wasexpanded as a result of the AIDAB-funded Project Inception Study carried out byan Australian consulting firm late in 1984. While some recommendations of theOMO study were implemented by DOL, others were deferred. This delayed DOL'sinstitutional development.

5.6 The technical assistance program defined at appraisal for AIDABcofinancing was significantly revised as a result of the Project Inception Study.The resultant scope and the terms of reference for the technical assistanceprogram were accepted by the Bank and AIDAB, and served as the basis for thetechnical assistance contract negotiated between an Australian consulting firmand DOL. During the project period, a number of changes to the scope of serviceswere agreed, although implementation of changes was constrained by the nature ofthe contract between the consultant and DOL, and the need to get prior approvalsfrom the Bank and AIDAB. This affected to some extent the flexibility to respondquickly to changing requirements. The original scope of services was extendedwhen additional AIDAB funding was allocated with the extension of the projectcompletion date.

5.7 Project risks were correctly identified and assessed at appraisal.They related mainly to delays in procurement and implementation of therecommendations of the OMO study.

6. Proiect Results

6.1 The project has substantially achieved its overall originalobjectives. However, it is too early to evaluate the socio-economic impact asmost title deeds have been issued only in the past two to three years. The

institutional development of DOL has been slower, although a substantial trainingprogram has been implemented. The decentralization of land administration tobranch office level has been successful, providing the public with moreaccessible, timely and effective land administration services. The CentralValuation Authority has been strengthened, and Government revenues from landtransactions have considerably increased as a direct result of the project.

6.2 Rural Mappin . Aerial photography was fully completed for the nineproject provinces at 100Z coverage. Due to the late acquisition of the initialaerial photography, full photomap production was not reached until project year3, one year behind the appraisal plan. It was also envisaged that the aerialphotography would be undertaken by the Royal Thai Survey Department (RTSD) underforce account. This was not possible due to the lack of aircraft and experiencedpersonnel, other RTSD commitments, and quality control requirements. Thecontracts were finally awarded on the basis of international competitive bidding.Subsequently, the contract periods were increased from one to three years toreduce costs due to the long bidding process, annual aircraft and securityclearances, and the short annual flying season.

6.3 Photomap production has exceeded appraisal targets. About 12,880 mapswere produced for rural areas (against an appraisal target of 11,000 maps) toserve as basemaps for ground adjudication of parcels and for NS3K certificateconversion to title deeds. Implementation of the automated mapping systemplanned at appraisal for operation in project year 3 was not fully operationaluntil project year 5. This delay was caused by a one-year wait for approval bythe National Computerization Committee and a lengthy procurement process due tothe fact that the technology was new to Thailand. During the project period,sustainable photomap production capacity increased from 200 to 4000 units peryear.

6.4 New technology to improve the productivity of survey control for bothrural and urban mapping was successfully introduced at the beginning of theproject. This included the Universal Transverse Mercator (UTM) coordinate systemand satellite surveying techniques (Doppler and, subsequently, Global PositioningSystem). The new technology enabled the survey of ground control points to becompleted ahead of schedule.

6.5 Urban Mapping. As envisaged at appraisal, the national cadastralurban mapping program is on target to be completed in year 10. Actual outputshave far exceeded appraisal targets. The project target was to produce about2,000 cadastral maps during the project period, with some 1,400 in Bangkok and600 in other urban areas, but 4,305 cadastral maps have actually been compiled.The cadastral mapsheets are now in use in the land offices and, in most offices,are being continually updated in accordance with DOL regulations. In otheroffices where this is not being carried out, these maps will soon be out of dateand lose their value.

6.6 Land Administration. The land administration component included titledeed preparation and distribution to eligible land owners and the creation ofbranch land offices in the project area. At an operational level, the landtitling and administration component has been successful with most of the targetsachieved, but at the strategic level, progress has been slower (para. 6.15).

6.7 Some 2,010,764 title deeds (about 79% of the final estimated 2,547,700total eligible parcels) have been prepared, and some 1,538,686 of those weredistributed to the beneficiaries by the end of 1991. Title distribution is aimedto be completed at the end of 1993. Sixty new branch offices have beenestablished (about 97% of the total 62 potential offices identified atappraisal), staffed with a total of 720 officers, equipped, and made operationalwith an average of about 21,000 title deeds each. Also 131 staff houses havebeen built in support of the branch offices and other office locations. Strongrooms were improved both inside and outside the nine provinces. The size of theadjudication and conversion teams (administered from headquarters) increased from12 in 1985 to nearly 300 in 1990. These results, shown in Table 4.A of Part IIIof this report, represent a considerable achievement, as the offices had tohandle a much higher volume of land transactions (especially in the north) withthe same number of staff in a period of land boom.

6.8 At project completion, about 21% of the total number of eligibleparcels in the nine provinces had not been issued with title deeds. Theseinclude: (a) parcels in fringe forest areas where the forest land classificationstatus is unclear; (b) parcels held by families where the owner of land documentsis deceased and inheritance is not resolved; (c) parcels where the holder wasabroad or could not be contacted; (d) parcels whose holder could not proveeligibility as required by the Land Code; (e) urban land parcels still held inNS3 or other documents or with no documents at all; and (f) parcels in widelydispersed areas where DOL considered systematic adjudication to be tooinefficient. A preliminary analysis shows that no income group suffered morethan the others from this lack of completion. DOL has proposed three courses ofaction to address the completion of titling for these parcels (Part II, para.4.4) and parcel holders will have to pay the same price (Baht 90) as under theproject.

6.9 Measures to complete titling in the parcels so far left out willinvolve policy changes at the highest level while others are procedural changesthat can be handled by DOL. A clear land use policy is required for theclassification and field delimitation of forest and pre-reserve forest land.This policy should also define mechanisms for cooperation between RFD, LDD andDOL. At DOL level, it is suggested that certain procedural changes be consideredespecially in cases where the owner is deceased or absent. The parcel could besurveyed at the time of systematic adjudication with the adjudication of rightsleft to the time when the parties determine they are ready. The forest landcases require further resolution at a policy and procedural level, and DOLefforts are acknowledged here. For cases where evidence is lacking in terms ofthe Land Code, policy decisions are required to guide the land adjudicationteams. Several options may be considered. Completion of surveying would takeadvantage of the economies of scale in having a survey and adjudication team inthe area and of the efficiency of field adjudication techniques. A title couldalso be issued in the names of deceased land owners, leaving inheritance issuesto be addressed at a later stage. It is recommended that DOL take actions thatwill reduce the number of cases where no systematic adjudication takes place,which has resulted in gaps in cadastral maps.

6.10 There have been delays in the distribution of completed title deeds,which is a time consuming task and has not yet been completed for the project.Title distribution has been affected mainly by a lack of financial and humanresources at provincial and branch land office level, which can be traced to

- 8 -

deficiencies in planning and coordination at DOL level. DOL did not budget andprovide the resources necessary to carry out the task, but it is now implementingan action plan to complete distribution by the end of 1993. About 10 to 15% ofthe total titles produced have yet to be distributed to the beneficiaries in thenorthern areas, while in some north eastern provinces, as many as 401 remainedundistributed.

6.11 While land information system (LIS) activities were not directlyindicated in the appraisal report as an output, the project has laid down afoundation for the remaining phases of the 20-year program. Before the project,DOL was not ready for LIS. Records were incomplete, especially in rural areaswhere less than 30% of parcels had any records which could be used to form asatisfactory basis for LIS. There were more registered parcels in urban areas(e.g., up to 90% in Bangkok), but few cities had up to date cadastral maps (i.e.,the titled parcels could not be located on maps). The project has establishedsupport systems for LIS, including photomaps and cadastral maps on UTM projectionand title deeds.

6.12 Strengthening of DOL at Central Level. The project supported severalactivities for strengthening DOL's operational capability. A new Survey andMapping Building which housed modern survey and mapping technology wasconstructed. With the close collaboration of the Civil Service Commission (CSC),the DOL structure was reorganized to rationalize the division of workresponsibility and process. Six new Divisions, namely Aerial Photography, UrbanMapping, Supply, Land Business Control, Legal Affairs, and National LandAllocation Commission, were officially added to the DOL structure, while theTraining Division was upgraded to full Division status. With regard to personnelstructure, the increased responsibilities of land offices resulting from thedecentralization of DOL activities led to the upgrading of the position ofprovincial land officer from PC7 to PC 8 in 57 provinces both inside and outsidethe project area. In addition, the Cabinet approved the upgrading of CVA to anautonomous department in response to increased responsibilities in the future.

6.13 Human Resource Management and Development. The OMO study alsoaddressed the important areas of human resource management and development.While DOL gave appropriate attention to training activities, slower progress wasachieved in career development. In spite of a Government manpower hiring freeze,the three-year manpower planning exercise was conducted satisfactorily andenabled functional duties to be restructured. However, human resource managementwas affected by the lack of a staff deployment policy which prevented DOL fromdeploying scarce specialist staff to key areas, such as new branch land offices,technical divisions and CVA, in a more rational manner. Personnel policies alsodid not address the issue of appropriately compensating technical staff for theiradditional specialist skills. DOL was thus unable to retain many of thesespecially-trained staff who left for other positions not related to their skillsand for the private sector. The lack of coordination between the Personnel andTraining Divisions was also a problem.

6.14 The impact of training is not quantifiable, but development oftechnical skills and knowledge of technologies introduced under the project hasbeen significant. Overseas and in-country training and education have laid downthe foundation for technical sustainability in surveying, mapping and valuation.While the retention of survey engineering graduates from Chulalongkorn Universityby DOL has not been so successful, their skills and knowledge are now being used

- 9 -

by the private sector. At project completion, infrastructure facilities for apermanent training institute are still inadequate. The impact of the trainingprogram has also been limited due to the lack of policy for deployment of trainedpersonnel. There are 52 fragmented career streams and organization of personneldevelopment in response to job requirements is difficult. Fewer and broadercareer paths would be more responsive to needs.

6.15 Provincial and Branch Land Office Administration. The projectprovided the base for strategic changes in the later phases of the titlingprogram. While several major organizational and management changes in landadministration were made and implemented (e.g., the establishment of newtechnical Divisions), many of the other recommendations arising from studiesconducted in project years 1, 2 and 3 (paras. 6.20-6.22) are still underconsideration. An especially important recommendation that was not implementedconcerned the establishment of the Office of Provincial Office Management, andthe associated recommendation to have one executive (aside from the DirectorGeneral) responsible for the land registration function in DOL, at least at thelevel of policy and systems. These strategic issues are now being addressedunder the ongoing Land Titling II Project

6.16 Land Valuation Component. The project provided technical assistanceto assist in supervision and direction of CVA activities, undertake in-servicetraining, and establish a valuation course at Bangkok Institute of Technology(BIT). A total of 73 person-months of long and short term of valuationconsultants, against 72 estimated at appraisal, were utilized. For the valuationcourse at BIT, 80 person-months were provided, against 84 at appraisal. For theoverseas valuation fellowships, 35 student-years were taken up, against 27estimated at appraisal. Short term scholarships amounted to 38 person-months and152 person-weeks, against 59 person-months estimated at appraisal.

6.17 The institutional development of CVA has been successful as valuationactivities were significantly increased during the project. Staff was increasedfrom 25 to over 100 trained personnel, enabling CVA to accomplish the tasksassigned to it under the project. A loose leaf property index has been completedfor Bangkok, totalling 1,162,184 parcels in 24 Khets. The use of photomaps fromthe Urban Mapping Division was, however, delayed and CVA had to produce its ownmaps, amounting to a total of 17,615 mapsheets. Priority areas for CVAoperations were identified by the Cabinet as those areas which had substantialmarket price increases. The proposed advice to local authorities was restrictedto work in municipalities and selected sanitary districts and amphurs. CVA isnow able to carry out land and property valuations on a four year cycle, as abase for the registration of the transfer of rights and juristic acts in Bangkokand major growth areas of Thailand.

6.18 Technical Assistance. Overall, the technical assistance has beeneffective and relations with the Borrower have been excellent. The closecooperation between AIDAB, the Department of Technical Cooperation (DTEC), DOLand the Bank was significant. The technical assistance benefited by having asingle managing agent, representing a consortium of firms spanning the necessaryskill areas, willing and able to search widely for the specialist input requiredto support project activities. Under the project, 47 advisers from all threeindustry sectors, private, public and academic, and from virtually all states inAustralia, were assigned on this project for periods ranging from 3 weeks to 5years. The appraisal document well recognized the requirements for planning and

- 10 -

coordination (4 person-years), management consultancy assistance (about 5 person-years), and mapping technology (10 person-years). However, the need for landadministration and land registration advice was not recognized. The otheradvisers addressed this area as best as they could in the absence of a full-timeexpert adviser. This issue was resolved in the Land Titling II Project byassigning a long term expert to address this area.

6.19 Studies and Reports. AIDAB advisers conducted a number of studies andprepared associated reports on land titling and administration systems,procedures and regulations to achieve streamlining of adjudication andregistration procedures. However, in land administration and OO, very few oftheir recommendations for operational and systems improvements were implementedduring the project. Several were recommendations for vital technical changesaffecting land titling and administration, and the failure to adopt them mayimpact on DOL's operations. Recommendations not implemented include, Inter al.a:the decentralization of microfilming, rationalization of parcel numbering and thestandard forms (over 70) used in the land registration process, and resolving thelegal and technical issues concerning paper records.

6.20 An Organization. Management and Operations (OMO) Study was carried outfor DOL. Its objective was to review and recommend changes in DOL structure andprocedures so as to ensure that it can undertake its increased responsibilitiesthrough the next decade. The scope and terms of reference for the study weredefined during the AIDAB-funded Project Inception Study. The planned technicaladviser input was increased from the 28 person-months planned at appraisal to 41person-months, with further input envisaged to assist in implementation. The OOStudy team was increased from four at appraisal (organizational, finance andaccounting, computerization and institutional) to five, with the addition of atraining expert.

6.21 The study was undertaken in 1985 and resulted in five reports. Themain Organization Report made 23 major recommendations, only five of which werefully accepted and six partially accepted. The major recommendations included:establishing six new Divisions and an office of Provincial Land Management,improving procedures and work systems, and strengthening inter-Divisionallinkages and training. Acceptance of recommendations has been slow as theyinvolved major restructuring of such a complex and large organization as DOL.Moreover, some recommendations did not have the confidence of senior managementand would need further evaluation before their acceptance.

6.22 The following four recommendations raised key issues for the projectbut no real progress was made towards their implementation:

(a) The adoption by the DOL of formal strategic planning;

(b) Generation of senior position descriptions;

(c) Conduct of a work-activities analysis; and

(d) Establishment of an Office of Provincial Land Management.

6.23 Prolect Impact. The fiscal impact of the project turned out to belarger than expected at appraisal. Transfer fee collections, which had remainedstable at about Baht two billion in 1984-86, were originally expected to remain

- 11 -

at the 1986 level in 1987 and to increase by a further 10% in 1988. Instead,collections in 1988 and 1989 increased by 173% and 239%, respectively, inconstant dollar terms, over 1986. With the impact of the Thailand's economicboom experienced over the project years netted out, the increase in collectionwas 14% to 278Z higher for project areas as compared with non-project areas.This can be attributed to two main factors: (i) increased issuance of title deedsunder the project; and (ii) adoption of more up-to-date (higher) property valuesfor assessing the transfer fee, "profit" tax, and stamp duty levied by DOL. Theincreased revenues at full development due to the project are expected to exceedproject costs.

6.24 The project's impact on the physical environment is insignificant aslittle infrastructure has been constructed under the project. However, there areindications that the impact on the environment may be positive. There was nospecific action to protect forest and watershed lands under the project apartfrom excluding them from land titling. Although no data are yet available, thereis evidence from the socio-economic studies that there is less tendency forlandowners with title deeds to encroach into the forest.

6.25 Anecdotal evidence suggests the project has had a positive impacton women. Women land holders were not disadvantaged by the land titlingprocedures and their rights were not diminished. This is important consideringthat 12% of all rural landholders and 20% of urban landholders are women.Furthermore, bringing more land parcels into the land register and into the orbitof the Civil and Commercial Code ensures that women are better protected fromhusbands selling land without their consent. It is now not possible to registerthe transaction in a DOL land office without the other spouse approving bysigning the transaction document. In 1991 about 41% of DOL staff were women and15% of mid-level management or higher were female. Women are also make up asignificant percentage of the field adjudication teams, especially working asadjudication officers.

6.26 The project supported a comprehensive education and training programfor DOL staff. These activities helped to develop a public and private sectortrained capability in such disciplines as surveying, mapping and valuation.Before the project, there was little such capability in the country. DOL'sinability to retain all the scholars and fellows trained under its program hasresulted in the development of a very active private sector surveying andvaluation capability. A high level of individual training has been providedunder the project but at the institutional level, human resource development hashad limited impact because there is still no personnel policy for careerdevelopment and deployment of trained staff. Completion of training is notassociated with any reward or career advancement.

6.27 The technological impact, however, has been considerable in thefields of surveying, mapping, computerization, land administration and fieldadjudication. The social impact has been positive. Without the project, manyrural land occupiers would have been unable, or would have had to wait aconsiderable time, to obtain a title deed. Under the project, each beneficiarypays only Baht 90 for cadastral survey and issuance fees for each title deedagainst a real cost of Baht 1092. With it, the owner may apply for credit or useit as collateral for other investments; the land price also increases with thepossession of the deed.

- 12 -

6.28 The project aimed at and substantially succeeded in making improvedand up to date land information available on request to the public and governmentagencies. The total stock of information is impressive: over 109,000 sq km ofaerial photography, over 18,000 photomap sheets, 16,000 cadastral and cadastralindex maps, over 2 million title deeds and 1,400 UTM survey ground controlpoints. The aerial photography negatives are held by RTSD and are available toother public agencies at the cost of reproduction. They have been used alreadyin support of the Bangkok Land Information System project managed by the BangkokMetropolitan Authority. The cadastral maps are available to public agencies atthe cost of reproduction (those branch offices that received urban maps havedyeline machines) and to the public on a written application stating the intendeduse. Title deed information is only available to the owner or those who havetheir written permission, but it may be available to others if a writtenapplication is made stating the purpose the information will be put to.

6.29 Public access to land administration services has also improved. Bythe opening of 60 new branch land offices in the 9 provinces, the distances thepublic must travel to undertake land transactions has been reduced. However, thepublic must still wait for periods ranging from 3 months to two years forsurveying services. To help address this problem, an act to allow privatesurveyors to undertake resurveys and subdivisions has been implemented byGovernment in May 1992.

6.30 Socio-Economic Impact Study. The project provided for a socio-economic impact evaluation of the project activities. At the time of projectappraisal, no economic evaluations of cadastral projects which successfullymeasured the broad range of benefits quantitatively had been carried out. Thestudy, which started in 1984, was carried out by Kasetsart University with theassistance of two Australian specialists in economics and sociology under AIDABcofinancing.

6.31 Baseline surveys were carried out in the project area at differenttimes between 1984-86 and the follow-up surveys in 1991. Although a preliminaryreport has been submitted to DOL, verification and revision of the data are stillbeing carried out and the final report will not be available before early 1993.Resurveys have been necessitated by the number of errors found. A resurvey wascompleted in the north east in May 1992, and another one in the north was carriedout in July 1992. A preliminary econometric analysis of factors affecting landvalue and credit indicates that the possession of a title deed is significantlyrelated to land value and to the demand and supply of credit. Apart from theseanalyses, it is still too soon (2-3 years) after title deeds have been issued tobeneficiaries to undertake a full economic evaluation.

6.32 According to survey results, land titling has a considerable impacton land price. In both project and non-project areas, land prices were directlyrelated to the level of security of the land documents. Thus, land covered bya title deed was more expensive than land covered by a NS3 certificate, which wasin its turn more expensive than land held under a lesser certificate. However,the differences in land values due to the type of document were much higher inthe north than in the north east, reflecting the more commercial agriculturalproduction system and the greater scarcity of land in the northern region.

6.33 The amount borrowed by rural households also increased significantlyin the project area during the project. In the north, many more of the farm

- 13 -

households in the project area took out loans for long term investments in land(39.71 of loans in the project area against nil outside the project area).However, an equal number of loans were taken for the purchase of trucks andmachines in both project and non-project areas. Significantly fewer of the loansin the project area were for household consumption purposes, against almost 25%in the non-project area. In the north east, more farmers (over 25%) in theproject area took out loans for long term investments (trucks, machines,livestock) than those (10%) in the non-project area, but investments in land werevery low in both areas.

6.34 The main social benefit relates to the decrease in the level ofdisputes over land boundaries. While this was low to begin with at 5% ofhouseholds in the north east project area and 4% in the north project area, thelevel dropped to only 1.7% in the north east project area and to nil in the northproject area. There has also been a decrease in evictions, of about the samedegree as the decline in disputes.

6.35 Computerization of DOL Accounting and Administrative Operations. Atthe commencement of the project, DOL had no in-house computers and the projectprovided for an OMO study to investigate and recommend a direction foradministrative computing. The strategy for computerization was further definedthrough another consultancy with Chulalongkorn University funded by AIDAB.Delaying the procurement of the computer to the end of the studies was justified.

6.36 Economic Benefits. The main project benefits derive from greaterindividual security of tenure, an improved national cadastre, and improvedproperty valuation. Lack of data and of statistical studies of cadastralprojects make it impossible to quantify benefits and undertake conventionaleconomic rate of return (ERR) analysis at this time. No ERR was calculated atappraisal.

7. Proiect Sustainability

7.1 The project has successfully established a decentralized andoperational land administration capability supported by a cadastral framework andtitling program in the project area. The system has been rationalized, allowingthe Government to maximize benefits from land transactions using up to dateproperty taxation data. The education and training program implemented under theproject has produced trained personnel for the wide range of skills needed byDOL. In particular,the technical innovations in surveying and mapping can befully sustained without further assistance from external advisers. The programlaunched under the project is being continued under the follow-on Land TitlingII Project (Ln. 3254-TH).

8. Bank Performance

8.1 At the beginning of the project, Bank missions spent relatively shortperiods in the country but subsequent missions stayed longer as project-activities increased. In 1987 at the time of Bank reorganization, there was ahiatus of almost a year between supervision missions. Together with the change-over of supervision staff, this affected the continuity and effectiveness of theBank's input into the project. The Bank has throughout the life of the projectattempted to provide the necessary level of staff inputs and skills mix toaddress prevailing issues. Both in the project design and during project

- 14 -

supervision, the Bank has been sensitive and responsive to the culture of thecountry. The neee to follow ICB procedures required by the Bank when it appearedthat only local bidders would be interested was an issue. Finally, the Bank wasgenerally prompt with regard to the review and approval of matters requiring itsdecision.

9. Borrower Performance

9.1 Overall, the Borrower has discharged its responsibilitiessatisfactorily under the project. DOL has, throughout project implementation,demonstrated its full commitment to the project and deployed the financial andstaff resources to implement the project. Staff increments earmarked atappraisal have been achieved, and training programs have been implemented toupgrade DOL staff skills. As priorities evolved during project implementation,DOL appropriately paid more attention to institutional issues in the later stagesof the project.

9.2 Weaknesses included delays in implementing institutional changes,particularly where there were policy and legal implications concerning Governmentagencies other than DOL. The lack of a policy to address such issues as theparcels left out of the systematic adjudication process, ad hoc staff deploymentand career paths, and the administration and management of provincial and branchland offices from the headquarters was a constraint. The lack of planning andcoordination between DOL's many divisions affected project performance. Delaysin procurement decisions for specific items as aerial photography and theautomated map transformation equipment affected project implementation progress.Finally, as for other projects supported by the Bank in Thailand, the BudgetBureau followed too rigidly the contents of the Staff Appraisal Report and wasreluctant to make appropriate revisions to costs and budgets in response to newsituations and requirements.

10. Project Relationship

10.1 The most satisfactory relationship between the Bank, DOL, otherGovernment agencies, and AIDAB (including its advisers) enabled smooth resolutionof emergent problems during project preparation and implementation. Closecontact was maintained by the Bank informally, and although formal notificationof upcoming missions was unavoidably delayed in some cases, DOL and AIDAB werekept informed, and AIDAB was able to participate in Bank supervision missions.

11. Consulting Services

11.1 Contractors, suppliers and consultants performed satisfactorily.

12. Proiect Documentation and Data

12.1 The legal agreements did not cause any impediment to theimplementation of the project and there was no need to make any amendment to theloan agreement during project implementation, except for a routine reallocationof loan proceeds. The Staff Appraisal Report provided a useful framework forproject implementation, but was weak in reliable parcel statistics. Thisaffected project planning and implementation. Greater emphasis should have beenplaced on strengthening parcel statistics during project preparation.

- 15 -

PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE(Prepared by the Department of Lands)

1. Comments on Part I

1.1 The descriptive overview and critical analysis of the Land TitlingProject in Part I of this report illustrates clearly some important aspectsconcerning institutional settings, organizational and managerial capacities andalso some inherent constraints that DOL had faced in implementing the LTP PhaseI during 1985-1990. The analysis which has been prepared by the World Bankproject completion mission and is based on the accumulative experiences duringthe course of the Project addresses some fundamental problems that need to berecognized and resolved if the Land Titling Project is to be carried out at themaximum efficiency and generate the best benefits to the country. As theimplementing agency, we would like to express our views as follows:

1.2 With regard to the project design and organization, it is agreed thatLand policy issues involving the roles and responsibilities of key collaborativeagencies namely DOL, RFD and LDD were underestimated. This, in subsequence, hadan impact on the LTP's achievement targets. Recently, DOL has attempted to solvethis institutional collaboration problem through creating a Project Technicalcommittee to stimulate cooperative efforts from other agencies and coordinatetasks in some important domains. This institutional development needs to beinstitutionalized for the long run.

1.3 Part I also mentioned the lack of policy guidelines on several issues,for example, development and deployment of trained staff, assignment of a workunit that can integrate and supervise provincial and branch land offices, andfailure to complete the titling of parcels left out of the systematic fieldadjudication process. In reply, DOL accepts tv:ese as fair comments and theyshould be resolved on a rational basis. Howev r, in practice, the resolutionsof these issues cannot be decided by DOL alone,'other institutions must also beinvolved. Based upon this bureaucratic setting, it should be confirmed that, inaccord with the World Bank's observations, some central policy agencies such asthe Civil Service Commission (CSC) and Bureau of Budget (BOB), and NationalEconomic and Social Development Board (NESDB) have played a critical role ininducing institutional change in the Project implementation.

1.4 The Bank and DOL agreed that the project completion date was September1991 which was a year behind the appraisal schedule. The Bank also notes thatat this date about 80Z of eligible parcels have titles. The term "ProjectCompletion" needs to be reconsidered and clearly defined. Experience in LTPshows there are valid legal and practical reasons why it is simply not feasibleto issue title to every eligible land parcels during the progress of the LTP inthe provinces. DOL has therefore adopted a realistic approach to defining"project completion" as follows: the project should be regarded as complete ina province when the title deeds have been issued to all the eligible parcels andthe remaining legitimate parcels that have not been issued with title deeds havebeen identified, and policy directions and a time-bound implementation plantoward these parcels clearly determined. Agreement by the Bank to thisdefinition will ensure a common understanding and will assist in projectformulation and planning for the future phases of LTP.

- 16 -

2. Bank Performance

2.1 In general, the Bank has discharged its duties and responsibilitiesprescribed in the project design document satisfactorily both during the stagesof project design and implementation. It should be observed that the Bank hasnot only been very enthusiastic and cooperative in delivering technical servicesto the Project but also emphatically sensitive to norms and cultures of thecountry. This cultural sensitivity is of course one of the key factors that havean important contribution to smooth implementation as well as success of theProject.

2.2 As indicated in PART I, in several occasions during the project life,there has been some delay in the procurement process. This delay, as aconsequence, affected the results of project implementation, especially withregard to some technical programs such as aerial photography, urban mapping, andso on. One of the underlying causes of such delay was the long process ofinternational bidding. Apart from the Thai regulative controls and restrictiveprocess, which of course took many unnecessary steps and consumed too much time,DOL was required to get final approval in procedural steps from the Bank; thisincluded, for example, bidding document. On average, each approval took about15 days before DOL could get any response from the Bank. In some cases, it tookup to 2 months. Although the Bank attempted to respond on an efficient andtimely basis, these procurement procedures already consumed too much time whenaccumulated with red-tape in the Thai process. It is therefore suggested thatthe procurement process be reviewed and renegotiated to minimized such red-tape.

2.3 As the co-financing partner of LTP, the Bank and AIDAB of theAustralian Government continually put their best collaborative efforts to realizethe achievement of the project at all important stages. Especially, through themechanism of an Australian consortium, AIDAB provided an excellent technicalassistance program basically needed by LTP, covering provisions of technicalexperts in certain areas, scholarships for DOL staff to study in Australianhigher educational institutions, and organizing short term training courses andstudy tours in Australian for the project's operational staff and executivesrespectively. It has been widely acknowledged that AIDAB contribution to theproject during the Project Phase I supported the process and foundation ofinstitutional innovation and change in DOL.

3. Borrower Performance

3.1 As described in Part I, DOL has executed the project effectively. Theoriginal objectives which have remained unchanged during the projectimplementation, have been achieved to a reasonable degree as expected in theproject design document. Outstandingly, on one hand, it is noted that progresson technological and technical developments of the project has been highlysatisfactory and, no doubt, DOL can absorb these changes into its normal, routinepractices very effectively. On the other hand, DOL has also acknowledged thatinstitutional development including modification of land codes, enactment of CVAlaws, organizational development, and changes in managerial and operationalpractices is rather slow and less effective, compared to the technical aspect ofthe project. This institutional constraint however is not due to the uniquenessof DOL itself but inherent within the Thai bureaucratic settings and system asa whole.

- 17 -

3.2 The introduction of new technologies and innovations in the areas ofsurveys and mapping, supporting computerization valuation, and systematic fieldadjudication to improve quality and efficiency of works was highly successful andwork productivity increased significantly. Moreover, at the final stage of theproject, DOL began to apply computerization and information systems (IS) as toolsfor program improvements in the areas of technical, administrative, and servicedelivery systems.

3.3 As indicated in PART I of the report, the success of the technicalaspect of the project resulted in an immense increase in productivity of workprograms and activities. For example, aerial photography was fully completed innine provinces as planned. Photomap production increased its capacitysignificantly from 200 to 4000 units per year. Average control points, bothmajor and minor controls, were completed ahead of the set schedule. In addition,under this project, urban mapping produced 5,712 mapsheets, from which 4,305cadastral maps were compiled. Therefore, based upon these performanceindicators, it is clear that DOL performed very well with regard to technically-related programs of LTP.

3.4 With respect to institutional development areas which includestrategic planning, reorganization, administrative development, human resourcemanagement, training and development, and so on, it should be observed thatchange and development has been slower. Specifically, a specialized humanresource development program in surveying engineer, valuation, and otheradministrative functions to a large extent, could have yielded a more effectivecontribution to the project. DOL was unable either to keep all the trainedpersonnel as its asset or to deploy them more effectively. This human resourcemanagement constraint was due to both fundamental basis of the Thai bureaucracyand the lack of clear policy direction of DOL itself. Moreover, it is alsoobvious that some critical issues recommended by OMO report such as establishmentof Provincial Management Office, grouping of divisions on a functional basis,conducting an activity analysis program, and also strategic planning have notbeen adequately explored and substantiated to generate potential impact on theDepartment. The Australian Technical Assistance was seriously concerned with thesustainability of both technical and institutional developments. But, DOL seemedto pay inadequate attention to the need. Therefore, it is clear that DOL shouldplace more commitment to the issue of institutional change and development in thefuture so that the technical progress which has already been in place can besustained and benefit the most to the Department as well as society.

3.5 The change in DOL's top-management also had serious effect on theproject performance. To a considerable extent, the effect can be regarded interms of change of direction, policy shifts and management uncertainty. At theearly stage, LTP suffered a great deal under the frequent change of projectmanagers. In addition due to the bureaucratic cultural constraint, the projectmanager sometimes could not perform his duties on a full-time basis and this hadnegative outcome on the project's decision-making process.

3.6 As a key operational unit, Land Titling Project Office (LTPO) facedseveral problems in implementing the project. First, as mentioned in para. 3.4,the office changed its project managers frequently, thus affecting the managerialcapability. Second, the status of the project office was somewhat unclear, LTPOstaff therefore became uncertain about the progress in their work and their

- 18 -

morale was low. Under such circumstances, it was difficult for the LTPO tomotivate its personnel to work efficiently. Finally, LTP management had longoverlooked the importance of project management information in coordinating withother implementing line divisions. On this basis, the monitoring and evaluationactivities of LTPO were lacking and could not cope with either progress reportingon the project or identifying problems which needed to be solved quickly. Inthe Project Phase II, the performance of project management really requires asubstantial improvement as the project will face more complex and interdependentnon-technical problems.

4. Lessons Learned

4.1 Generally, throughout the project life, it has been evidently provedthat technical changes and innovations were recognized, adopted and absorbed byDOL more quickly than those institutional aspects. Such technical progress, asa consequence resulted in an impressive productivity increase in severaltechnically-oriented activities such as aerial photography, map production, maptransformation, and so on. In addition, the Project also attempted to introducecomputerization into other areas, including, Land Information System (LIS), LandOffice Computer, and Administration Computer. DOL has learned that technicaladvancement without relevant support of institutional change might lead toorganizational issues or controversies. In some areas, these controversiespresented serious threats to the project as well as DOL; for example, turnoverof survey engineers, lack of work incentives and low morale of staff, inabilityto deploy specially-trained human resources, and poor integration of functionalresponsibilities in the Project.

4.2 To close the gap between technical and institutional developments asmentioned in para 4.1, there is a need for policy directions, especially in theareas of systematic field adjudication, DOL strategic plan, human resourcesmanagement, provincial and branch land office management, and overallorganizational development.

4.3 Based upon the implementation experience which has already beenindicated in para 1.1 and 1.2, DOL found that careful institutional design andpolicy and plan formulations were critical elements that constituted importantimpact on the achievement of the project. Some neglected areas such as forestboundaries, revisions of land codes to simplify and facilitate the landadjudication process, and deployment plans for specialized human resourcesunavoidably affected the project during the implementation stage. Theseinstitutional constraints eventually caused unnecessary uncertainty andinefficiency of the project. Thus, DOL had to invest some of its already limitedresources on the problem that could have been settled in the design phase.

4.4 Based upon the result of LTP Phase I, DOL found that a number of landparcels have been left undocumented. Most of these undocumented parcels are dueto either legal illegitimacy, land adjudication constraints, or technicaldeficiency of the cadastral maps. In the case of forest boundary dispute, DOLholds to a principle that DOL will not issue titles for the parcels within theradiaus of one kilometer from the existing forest boundaries. Issuance for therest of the undocumented parcels will be implemented on the following measures:

- 19 -

(a) If the land is a large area (approximately 5,000 parcels), DOL willadhere to Land Code Article 58 and the plan will be implemented inPhase III;

(b) If the land is of a small size with scattered parcels, DOL will applyLand Code Article 59 which allows the Land Office to takeresponsibility; and

(c) If the land covers a large area but with scattered parcels, DOL willcreate a special unit and use the normal budget in issuing the titles.

4.5 As already mentioned in para 3.6, DOL has been more aware of thenecessity of the project management information system improvement. Theeffectiveness and efficiency of LTP is largely dependent upon the success of thisactivity. In practice, DOL planned to stage a preliminary study for projectmanagement information system at the beginning of LTP Phase II, and the systemshould be installed for the practical use in the near future.

4.6 The introduction of technical innovations and reorganization of workstructure has caused the operational and managerial systems to become morecomplex and closely dependent on each other. Under this organizational context,there is a strong need for better systems of organizational planning,coordination, and monitoring and evaluation of individual programs. DOL haslearned that considerable achievement in the technical programs essentiallyrequired an improvement of managerial capability both to maintain desirableperformance and to solve more complex problems that emerge.

4.7 At the operational level, there has been a critical coordinationproblem concerning map production, issuance of title deeds and establishment ofBranch Land Offices. Based upon the project's technical design, these activitiesshould be logically linked and integrated with one another in a sequentialpattern. In practice, however, it was found that there were some inconsistanciesamong map production, digitizing, adjudication and branch land officeestablishment plans. Although some of these coordination problems werepartially resolved by setting up a management mechanism within a specificprogram, other coordination problems between programs were still not resolved.Therefore, DOL needs to tackle these more quickly and effectively.

4.8 As the organizational systems became more complex and interdependent,DOL realized that communication and information really play an important role ingenerating more effective implementation of the project as well as facilitatingmore efficiency of the already established operational programs. The former wasparticularly the case for LTPO whose key responsibility was to integrate andcoordinate with all implementing units. The latter could be applied to line andstaff units which needed to be efficiently integrated into an overall system ofDOL. Top-management and functional divisions management therefore were requiredto pay more attention to the need for improvement of communication andinformation systems.

4.9 Beside the need for strategic vision and structural adjustment to makeit fit with the work system requirements, DOL also found that human resourcefunctions and management played a critical part for effective implementation ofthe project. As part of the institutional development program, the project was

- 20 -

successful in sending some personnel to participate in education and trainingprograms in various fields both in-country and overseas. Nevertheless, theDepartment still failed to exploit their knowledge, skills and experienceproperly after they returned to works. Part of this personnel management problemwas due to the dificiency in human resource planning, career development, andmore importantly, human resource policy guidelines. It is therefore importantthat DOL should find ways and means to effectively cope with these human resourcemanagement dilemmas.

- 21 -

PART III: STATISTICAL INFORMATION

1. Related Bank Loans

Loan/Credit Year ofTitle Purpose Approval Status Comments

1. Structural To assist the Mar. 1982 Closed on PCR No. 6805Adjustment I Government in Mar. 31, 1983 dated Dec. 12,Ln.2097-TH implementing 1984

macro-economicand trade policychanges, includingthe issuance ofusufruct certificatesin forest reserves,reclassified assuitable foragriculture by theRoyal ForestryDepartment

2. Structural Same as above Mar. 1983 Closed on Jan. 31, PCR No. 6805Adjustment 11 1984 dated Dec. 12,(Ln. 2256-TH) 1984

3. Land Reform To assist the Sep. 1982 Closed on Sep. 19, PCR underAreas Project Agricultural Land 1989 preparation(Ln. 2198-TH) Reform Office in

the delivery ofusufruct licenses indegazetted forestreserves

4. Land Titling 11 Land cadastre, Aug. 1990 Ongoing Phase 11 of(Ln. 3254-TH) titling and Ln. 2440-TH

administration

- 22 -

2. Proiect Timetable

Date Date DatoItem planned revisd actual

Identification n.a. n.e. Jun. 30,1981

Preparation n.a. n.a. Nov. 1982

Appraisal n.a. n.a. Aug. 18,1963

Negotiations Apr. 23, 1984 Apr. 23,1984

Board Approval Jun. 12, 1984 Jun. 12, 1964

Loan Signature Oct 11, 1984 Oct. 11, 1964

Loan Effectlvenes Dec. 9, 1984 Jan. 25,1985 Jan. 25,19685

Loan Closing Sep. 30,1991 Mar. 31,1992 Mar. 31,1992

Project Completion Sep. 30,1990 Sep. 30, 1991 Sep. 30,1991

- 23 -

3. Loan Disbursements

Cumulative Estimated and Actual Disbursements(USS million)

FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92

Appraisal estimate 1.1 5.1 11.2 18.2 24.5 31.0 34.3 35.0

Actual 0.1 1.9 7.0 11.4 17.9 23.5 30.6 33.6

Actual as % of estimate 9.1 37.3 62.5 62.6 73.1 75.8 89.2 96.0

Date of final disbursement: July 31, 1992

- 24 -

4. Prolect ImplementationA. Rey Indicators

Unit Appraisal Target Achieved %

1. Rural Mapinim

Aenal Photoaraphy kRural area sq smUrban area s sc 14,482 -

not specified 3,83348Photomap Production mapeheets

Rural area mapaheetsUrban area 11,000 12,886 118

3,000 7,162 238Cadastral Mappins mapsheets

1:4000 (exsting maps) mapsheets1:1000 (new ground suivey) mapeheets 5,000 8,106 1621:2000 (new pound survey) 6,000 27,713 462

11,000 866 8

2. Urban MappingBangkok (1:1000) maps 3,570 4,371 122

parcels 487,800 646,475 133Provinces (various scales) maps 2,920 5,301 182

parcels 431,400 550,105 128Total maps 6,490 9,128 141

parcels 919,200 1,196,200 130

3. Land Titling and Administration

Titling IssuingGround survey only parcels not specified 868,838 -

Ground survey/Aerial photo parceb not specified 337,794 -

NS3K conversion parcels 1,400,000 804,132 57

Total 2,010,764 -

Land Administration unitsNew surveying & mapping building 1 1 100New branch land office 62 60 97New district land office building 15 11 73Expansion disuict land ofice buildins 23 79 343Construction strong rooms 264 122 46Staff housing 135 131 97

4. ValuationBase map production units not specified 265 -

Block property valuation khets not specified 202Parcel property valuation khets not specified 11

5. Ortanization Manasement andOperationsAppointment of new officials no. 1,080 1,573 146In-country training no. 3,311 6,674 202Oversa training no. 63 122 194Survey engineering students no. 100 120 120Valuation students (DOL) no. 80 52 65New divisions no. 7 8 114Socio-economic studies no. 8 10 125

- 25 -

B. Title Deed Production and Distribution

.- .. . :. , : -" , ' ,'.:. ' - - :"A'. : .- .. '' . .."'AeIal Phtomap iNS3K OWrIOt -ToI. _ __

'rotai roI OSuiitpa Tagt uhu Tret Otpt Pit-a~ :. - :. : ab - a~ G a s d .S r - -::. : I ; :~~~~~~~~~~~~~~~~~~.. .. ...t ...... . |, .. |: iFt.5 0r5j 5 'jS

Chiang 252,100 111,990 130,687 53,760 54,498 67,200 61,740 232,860 246,925 218,916Mai

Chiang 379,700 86,400 94,772 42,240 35,253 70,400 62,837 199,040 192,862 153,203Rai

Payao 235,200 45,720 50,236 24,240 21,896 43,600 51,065 113,560 123,197 106,286

Lamphun 212,700 45,720 46,684 21,300 21,656 85,050 23,888 152,070 92,228 75,760

Nakhon 491,400 162,300 186,651 80,550 62,867 124,800 177,361 367,650 426,879 378,098Ratcha-sima

Buriram 284,300 115,200 132,446 56,070 31,837 129,350 107,539 300,620 271,822 238,663

Si Sa Ket 379,100 101,700 112,601 67,680 54,083 175,800 196,775 345,180 363,459 243,888

Mae 10,100 5,040 4,120 5,580 3,844 1,500 656 12,120 8,620 10,442HongSon

Surin 303,100 95,130 110,641 52,080 51,860 123,000 122,271 270,210 284,772 113,430

Total 2,547,700 769,200 868,838 403,500 337,794 820,700 804,132 1,993,310 2,010,764 1,538,686

/a These figures were not known at appraisd

- 26 -

C. Production Data

.- .-..-. -...-..-

Chisng Mai 940 901 224 975 663 772 10 10

Cbiang Rai 1,332 1,136 48 118 600 633 7 7

Payao 649 70 13S 410 613 S 5

Lamphun 393 403 42 118 400 460 3 2

Nakbon 4,080 4,010 144 240 690 968 15 15Ratchasima

Buriram 2,133 54 105 470 S13 7 6

Si SaKIet 1,224 1,788 25 68 7 7

Saong 174 131 19 36 180 288 1 1

Surin 1,344 1,735 48 77 390 510 7 7

Bangkok 6,336 5,290 4,374 4,371

Total 9,487 12,886 7,010 7,162 8,177 9,128 62 60

D. Chanfee in OutDtut Rat-e (p.r Yea?)

11: D 4 0 : ff X - ~. . -. - .. ....... . ........ . ... 4 .- . . fA:S .; .*. ft..........

11~~~~~~~~~~u I f~0111

Survey control traverse (kin) 5,000 20,000||Satellite control (2nd Order) Nil 800

|n Photomapping (rectified maps) 500 5,000itle deeds production (units) 50,000 500,000

Computer map transform (maps) Nil 1,140Urban re-mapping (parcels) Nil 300,000

So-

- 27 -

E. Traininf

I , ,, , ,. ig -, ''"' ,' ''. ' 'I -'1-' ' " '':

Maior Courses

Senior Land Administrative Officers 7 280 7 278

Land Administrative Officers 4 165 4 165

Surveying Administrative Officer, 4 165 4 165

Amphur Land Officers 10 475 10 475

Subtotal 25 1,085 25 1,083

Specific Courses

General Administrative Officers 1 40 1 40

Land Technician 3 120 3 157

Finance & Accounting Officers 6 240 18 851

Provincial Finance Accounting & Tax - 10 1,024

Surveying Operation 4 180 4 180

Knowledge on Land & Tax 5 250 5 250

Public Service Strategy 1 45 1 45

Public & Policy Analysis 1 25 1 25

Subtotal 21 900 37 2,572

Special Courses

Lecturers 21 420 21 406

Basic Training Knowledge 2 76 2 76

Service Relations 27 2,000 27 2,009

Land Right Certificate Issuing Officer Training 7 3,162 7 3,000

Administration Training for Superintendents 9 450 9 450

Project Work Plan Preparation 1 45 1 45

Land Right Investigation Officers 7 280 7 280

Project Administration Training for Land - 1,142 - 1,142

Management's Field Operation Unit Chiefs

Astronomy & OPS 2 154 2 154

Quality Life Project 21 4,542 21 4,542

Newly Recruited Officer Orientation 2,000 2,367

LTP Adjudication Party Superintendent Seminar 3 227 3 227

Senior Land Administration Officer Seminar 3 720 3 720

Seminar for Land Records Section Chiefs throughout the Country 2 283 2 283

Seminar for Survey Records Section Chiefs throughout the 3 452 3 452Country

Seminar for Changwat & Branch Land Officers throughout the 4 320 4 320Country

Higher Administration Psychology 8 320 8 468

Subtotal 120 16,593 120 16,941Total 166 18 182 20.596

CVA

Practices of Property Asssment for Rights and Juristic Acts 13 72 13 817Registration for Land Officers

Bangkok Institute of Technolory

Valuation Diploma 7 90 7 71

Chulalonekorn University

Survey Engineering 7 100 7 106

- 28 -

F. Technical Assistance - Training

F|old of study t Prjc Actual

Repon, stud peue

Graduate

Public Administration 300 48 48Land Economics 24 24Resources Development 24 24Geodetic Engineering 96 96Photogrammetry 48 24Computer Science 96 96

Undertraduate

Valuation 324 468 396

Total 624 804 708

Overseas Visits/Short Courses

Photomap Production 6 9.0Cartography 6 1.0Digitizing/Computing 4 2.0Urban Mapping 30 19.5Valuation 45 39.0Cadastral Project Management 10 6.5Financial, Personnel & Training Management 30 32.0Computerization 24 24.0Policy & Planning 10 12.0Evaluation 6 4.0

Group Study Tour

Land Administration & Registration & Cadastral Mapping 39 47.0

Subtotal 132 210 196.0

Total 756 1,014 904.0

- 29 -

G. Technical Assistance - Advisers

Psition Staf Appaisa - Pr6ject Tuceptiwol - - ipzt-Repot-t StuYI'- (p taonm~h

Long-Term L

Project Sponsor ns aL unchanged 0.0

Project Adviser ns 0 6.0

Project Administration na 5 9.5

Project Planning & Coord 48 60 65.0

Photomapping 60 60 63.4

Computing 60 60 67.8

Valuation - DOL 60 60 68.2

Surveying Lecturer/Adviser - Chula 48 48 34.2

Surveying Lecturer/Adviser BIT 48 48 36.9

Training Coordinator/Administrator ns 0 13

Subtotal 420 437 449.3

Short-Term

Valuation Legislation 12 12 6.0

Urban Mapping 2 5 14.0

OMO - Management 7 11 11.0

OMO - Fmance 7 8 11.0

OMO - Computing 7 7 14.0

OMO - Institutional 7 7.5 8.2

OMO -Training ns 13 11.0

OMO -Technical ns 2 2.0

Project Evaluation 17 36.8 14.4

Socio-Economic Coordinator 8.5 10.5 6.9

Socio-Economic 8.5 19 14.2

Land Information System nas 4 5.0

Land Administration ns 3 32.5

Geodetic ns 3 11.0

MIS ns nas 4.5

Subtotal 76 141.8 165.7

Total 496 578.8 615.0

/a Position categories as set out in the Project Inception Study Report, with the addition of subsequent new technical advierpositions. Notc that the socio-economic study input listed at appraisal (73 person-months) was undertaken with Bank funds,rather than AIDAB funding.

/b The definition of 'long-term' and 'short-term' staff categories is as set out in the Project Inception Study report. The actualstatus of each position may differ from that set out in the table.ns = not specified

- 30 -

5. Prolect Costs and Financing

A. Proiect Costs(US$'000)

Appraisa Estimate_______ Acual _______

Activity_Local Foreign Total Local Foreign Total

Rural Mapping

Base Cadastral Map 11,838.10 15,066.70 26,904.80 10,395.10 13,766.00 24,161.10

Ground Survey Teams 16,733.00 697.20 17,430.20 12,687.20 855.30 13,542.50

3,532.10 996.20 4,528.30 2,304.40 511.30 2,815.70Urban Mapping

Land Administration

Provincial & District Land Admin. 10,949.20 3,088.20 14,037.40 4,436.40 1,487.80 5,924.20

Land Admin. HQ 99.70 8.70 108.40 90.50 13.70 104.20

Title Conversion Teams 2,194.90 44.80 2,239.70 11.50 12.30 23.80

Land Valuation

Department of Lands 1,376.10 1,824.10 3,200.20 426.10 12.90 439.00

Bangkok Institution of Technology 238.90 1,467.90 1,706.80 172.50 83.60 256.10

3,289.90 2,584.90 5,874.80 6,276.30 8,539.20 14,815.50General Institution Building

Subtotal Project Cost 50,251.90 25,778.70 76,030.60 36,800.00 25,282.10 62,082.10

Front End Fee 87.30 87.30 91.70 91.70

TOTAL PROJECT COST 58,252.00 25,866.00 76,117.90 36,800.00 25,282.10 62,173.80

- 31 -

B. Proiect Financing(US$ million)

Cawioiant - ApprAisat Estimate - Actuat

DOL- BIT BANK AIOAB TOTAL OOL BIT BANK. AIDAB TOTAL

RURAL APPAINGBuilding 0.38 2.16 - 2.54 0.36 - 2.08 2.44Vehicles, Equipment & 1.44 - 6.26 - 7.70 2.02 - 7.29 9.31Furniture

Technical Assistance &- 4.25 4.25 - - 6.18 6.18TrainingIncremental Operating 15.55 - 14.29 - 29.84 9.24 - 10.64 - 19.88

Subtotal 17.37 - 22.71 4.25 44.33 11.62 - 26.19 - 37.81

tXUBAJ RENAPPINGBuiLding - - - - - -

Vehicles, Equipment & 0.13 0.56 - 0.69 0.37 - 0.64 1.01FurnitureTechnical Assistance &- 0.26 - - - - -TrainingIncremental Operating 1.86 1.71 - 3.57 0.82 - 0.93 - 1.75

SubtotaL 1.99 2.27 0.26 4.26 1.19 . 1.57 2.76

LAMD ADMINISTRATIONBuilding 1.04 5.88 6.92 -Vehicles, Equipment & 0.88 2.16 3.04 0.62 - 3.40 . 4.02FurnitureTechnicaL Assistance & - . 0.48 - 1.37 . 1.85TrainingIncremental Operating 6.42 . 6.42 0.13 - . 0.13

Subtotal 8.34 8.04 16.38 1.23 . 4.77 . 6.00

VALUATION

Building 0.03 0.03 _

VehicLes, Equipment & 0.05 0.02 0.11 0.18 0.03 - 0.04 0.07FurnitureTechnicaL Assistance 8 - . 3.03 3.03 0.07 0.12 0.19TrainingIncremental Operating 1.46 0.20 0.66 0.37 0.06 0.43

Subtotal 1.51 0.22 0.14 3.03 3.90 0.40 0.13 0.16 0.69

GENERAL INSTITUTION BJILDING

BuiLding 0.09 . 0.52 0.61 0.02 - 0.10 0.12

Vehicles, Equipment & 0.43 o0.78 1.21 0.15 . 0.34 0.49FurnitureTechnicaL Assistance & . 0.44 1.51 1.95 0.41 8.03 8.44TrainingIncremental Operating 2.11 . 2.11 5.77 - - 5.77'

Subtotal 2.63 1.74 1.51 5.88 5.94 - 0.85 8.03 14.02Total Project Cost 31.84 0.22 34.90 9.05 76.01 20.38 0.13 33.54 8.03 62.08

Front-end fee 0 0.09 0.09 - 0.09 0.09TOTAL 31.84 _ 34.99 9.05 76.10 20.38 8_0L 62.17

- 32 -

6. Proiect Results

A. Direct Benefits

Indicators Appraisal Estimate Eatimatnd at ClosMng Es ti at a:FuDate_________ fMvlopment

Households Issued Titles 700,000 1,007,000La 1,320,000&b

DOL Permanent Staff 1,270 1,573 1,573

DOL Temporary Staff 1,350 8,125 8,125

/a. At appraisal, each household was estimated to own an average of four parcels.

L Socio-economic surveys conducted under the project.

B. Financial Impact /a

Year Fee Tax Stamp Total Indc Annual Na. of Indes(Mililo Duty (Million to Base i nge Tras. y i

(Millo 0 Baht) (Mllion Bsltt) Year (%6) ac0 t iaioal Baey00iBaht) _ Baht) ( 0001 Year,

1982 1,481 332 2 1,815 100 Base 5,583 100

1983 2,138 966 111 3,215 177 77.1 5,787 104

1984 2,117 1,461 199 3,777 208 17.5 5,976 107

1985 2,144 1,583 226 3,953 218 4.7 6,521 117

1986 2,009 1,392 212 3,613 199 -8.6 6,290 113

1987 2,870 2,151 305 5,326 293 47.4 7,479 134

1988 5,775 5,115 620 11,510 634 116.1 6,926 160

1989 7,586 6,117 869 14,572 803 26.6 8,295 149

1990 13,136 9,997 1,499 24,632 1,357 69.0 11,751 211

1991 11,337 6,922 1,163 19,422 1,070 -21.2 9,509 171

1992 b 15,450 9,450 1,600 26,500 1,460 36.4 9,500 171

1993b 17,300 10,600 1,750 29,650 1,634 11.9 10,640 191

/L Figures represent the total amount of transfer, income tax and stamp duty on land transaction collectedby the Department of Lands.Both the tax collection and the stamp duty collection systems were introduced in 1982. New CVAvaluations were applied in 1988 and 199.

/b Projected revenue (estimate)

- 33 -

C. Studies

Studies Purpose as Definedat Appraisal Status Impact of Study

Organization, Review and recommend changes Completed In 1985 Five reports produced. The main OrganizationM anage m ent in DOL structure and procedures Report made 23 major recommendations, only 5and Operations of which were accepted and 6 partially accepted.

Socio-Economic To measure quantitatively the Preliminary report Preliminary environmental analysis of factorsImpact broad range of economic benefits submitted. ina aff cting and value and credit indicates that

derived from cadastral projects. report expected possession of title Is significantiy related to landearly 1993. value and to the demand and supply of credit

- 34 -

7. Status of Covenants

Covenant Subject Deadline for StatusCompliance

3.01 Borrower shall carry out project with due diligence, etc. None Completed

3.02 Borrower shall select consultants satisfactory to Bank None Completedin accordance with Bank Guidelines.

3.03 (a) Borrower shall issue Title deeds or preemptive None Completedcertificates to private occupiers of land.

3.03 (b) Borrower shall issue Title deeds or preemptive None Completed.certificates to private occupiers of land.

3.03 (c) Borrower shall issue title deeds to holders of None Completedusufructuary certificates issued by Public WelfareDepartment; the Cooperative Department; and anyother relevant agencies.

3.03 (d) Borrower shall issue documents for state land in None Completedaccordance with provision of Land Code.

3.04 Borrower shall ensure cadastral map sheets and records None Completedare available for inspection by public on request, andcopies thereof be obtainable by any of governmentagencies.

3.05 Borrower will provide evidence satisfactory to Bank None Completedthat branch expansion justified by number loandocuments to be handled.

3.06 (a) Borrower undertakes to ensure imported goods. None Completed

3.06 (b) Borrower shall cause all goods and services fmanced None Completedout of Loan to be used exclusively for project.

3.07 (a) Borrower shall submit procurement plans and None Completedschedules to Bank, etc.

3.07 (b) Borrower shall: (i) maintain records to monitor project None Completedprogress; (ii) enable Bank staff to and inspect facilities;and (iii) furnish information to the Bank as requested.

3.07 (c) Bank may publish details of contracts awarded. None

3.07 (d) After project is completed, Borrower shall prepare and None Completedfurnish to the Bank a report on project execution,costs, benefits and performance of the borrower andthe Bank.

3.08 Borrower to establish a Project Executive Committee None Completedand within DOL a Project Administration Committee.

3.09 Borrower shall:

(a) complete construction of mapping building; 09/30R86 Completed

(b) carry out study under Part E (1) of the project; None Completed

(c) furnish Bank with a copy of the report of such 10/01/85 Completedstudy.

- 35 -

8. Use of Bank Resources

A. Staff Inputs (staff weeks)

Stago ot FY82 FY8$ FY84 FY85 FY86 FY7 FY88 FY89 -Y90 FY91 PM TO0TAL.Pro4ect Cydle

Through appraisal 26.6 42.8 7.0 76.4

Appraisal through 17.4 17.4Board approval

Board approval 4.0 4.0through effectiveness

Supervision 14.3 22.0 16.3 15.4 16.1 3.8 5.8 6.2 99.9

Total 26.6 428 24.4 183 220 163 15.4 161 3.8 5.8 6.2 197.7

- 36 -

B. Missions

Stage of Project Month/Year N. of :Dy | Performance Trend Ir Types of______________ __________ Person. ield J: Ratine /b Problems /d

Initial Recons. 09181 1 3 A

Identification 1181/ 5 21 A,A,E,OC,L

Identification 02/82 1 4 A

Preparation 05/82 2 21 A,E

Preparation 08182 2 1 A,E

Appraisal 02f83 - 3 21 A,E,LA

Appr. Follow up 06/83 1 7 A

Appr. Follow up 09/83 1 7 SE

Appr. Follow up 11/83 1 2 SE

Appr. Follow up 07/84 1 2 ENG

Supervision 1 11/84 2 3 A,A, 1 2 -

Supervision 2 03185 1 7 FA - -

Supervision 3 03/85 2 5 A,E 2 2 F

Supervision 4 08/85 3 5 A,E,OC 2 2 P

Supervision 5 10185 1 7 SE

Supervision 6 02186 4 13 E,T,T,US 2 2 F,P,I

Supervision 7 10186 2 18 E,T 2 2 F,P,I

Supervision 8 11/86 1 3 SE - -

Supervision 9 02187 1 4 SE

Supervision 10 06/87 2 15 E,OC 1 1 P

Supervision 11 05/88 2 10 A,FA 1 1 P

Supervision 12 11/88 2 9 A,FA 1 1

Supervision 13 05/899:1 4 12 A,E,FA,V 1 1 |

Supervision 14 04/90 1 10 A 1 1 T

Supervision 15 12190 2 12 A,V 1 1 T

Supervision 16 06/91 2 12 A,V 1 1 I

Supervision 17 12/91 4 13 A,FA,V,LA 1 1

/a A = Agriculturist, E = Economist; FA = Financial Analyst; OC - Organization and Cadastral Specialist; T TrainingSpecialist; V = Valuation Specialist; LA = Land Acquisition Specialist; SE = Socio-Economic Specialist; ENGEngineering; US = Urban Specialist.

/b 1 = Problem-free or minor problems; 2 = Moderate problems.

/c 1 = Improving; 2 = Stationary

/d F = Funding; P = Project Management; I = Impact; T = Training

~~V~~J '1) ¼. ~~~LAO PEOPLE'S OEM. REPUBLIC >

7''"

MWYANMARL/)

,_ / ,__ >t~~~,~~,S,, CAhlBODIA

Ir ~ ~~ ~~ *k.%.f At@ _ (E _F ,- -)

,9 StA j~lN ' '

ANDAMAN SEA Gu/ ll/f of Thad/ond

v .a t , THAILAND X'VIET

LAND TITLING PROJECT

NAR PROJECTARE A S

litEXISTING WAS8 CADASTVSAL SHEET COVERAGE

RESERVED VOGEl? LASS SaJIVAILE P05 AGRICULTURE s HNOTHER LAND SUITASLE P05 FOCULT URE J OL ITH CHINA

- NATIONAL .I-TGSAY SEA'^VA40 A Z4V SI VOAMMA PROVINCIAL ROADS

5 -ROINGIL CAPITALS

- I - POOCl,CIL BOUNDARIES

INTERNATIONAL BOUNDARIES

51L350, 20 AG OH IV lA

w <7 ) K~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ILOSETENSO V AS K^ lOG IR

'MALAYSIA, Ice