Presents by : Mr . SIPHANDONE SIHAVONG

1. RTM-Subsector Working Groups on Natural Resources and Environment Vientiane Capital, 14 November 2011 Presents by :Mr. SIPHANDONE SIHAVONG Director General , Department of Land Ministry of Natural Resources and Environment Lao PDR

2. Opportunities in Natural Resources in Lao PDR • Natural Resources Potential : • Land, water, forestry , mines and others • -Economic Potential : • - Hydropower Development; • - Food Security; • - Ecotourism; • - Mining and Transit Services. • To move toward a market economy: is expected that investment in agriculture production will attract large investment .

3. National Land Policy : - Land and natural resources belong to Lao nations and are important resources of the country. • Issue Land and natural resources policies to lead the management, administration and sustainable use of land; protection of environment; land tenure security; maximum benefit to enable an increase income from land and natural resources to contribute to national budget. • Government has identified the following priorities: • 1) to prepare land and natural resource policies; • 2) laws on land and natural resource management/ regulations; • 3) Master Plan for land and natural resource management; ( Policy of “ Turning Land into Capital ” with the elimination of sifting cultivation, creating reservoirs and dams for hydropower and tree plantations to forest cover )

4. Legal Framework • The Land Law of 1997 was revised in October 2003. The important revision included: - Permission for Lao citizen to buy and sell land use rights, - Promote all social and economic societies to develop land to increase value, - Permit foreigners, foreign companies and organizations to have rights to legally lease and concessions of state land, - Define clearly the duration of land leases and concessions, rates of lease and concessions, rate of taxes and duties. # Development of the legal and regulatory framework for land : Land Law, Property Law, presidential decrees 01,02,03, PM decrees and ministerial directions.

5. Land Administration Institutions The Land Law of 2003 sets out the main institutional responsibilities for land management and administration in Lao PDR and defines 12 functions of NLMA (Article 10). The key institutions are (from January 2007) : - Department of Land (DOL) under the National Land Management Authority, Prime Minister’s Office (PMO). - Department of Land Use Planning and Development (DOLUPAD) under the NLMA, the Prime Minister’s Office. - Department of Land Policy and Land Use Inspection under the NLMA, PMO. - Research and Land Information Centre under the NLMA,PMO. From July,2011 is under Ministry of Natural Resources and Environment ( MONRE)

6. Land Tenure Security in Lao PDR (National Land Titling Program) The Government launched a National Land Titling Program, to title about 1.8 million parcels in the country, to resolve uncertainty and conflict of multiple claims to parcels, to rationalize the land market, and to develop a base for generation of government revenue. The first phase of the Land Titling Program, LTPI, was approved for funding by the World Bank in June 1996 and continued second Land Titling in 2004 to 2009.

7. The Land Titling Project - The first Land Titling Project Costs & Financing: Total U$S20.51 million US$14.0 million of IDA Credit ( World Bank) US$6.0 million of AusAID grant funds for technical assistance US$0.51 million of GOL budgetary contributions - The second Land Titling Project Costs & Financing: Total US$ 25.9 million US$ 16.0 million of IDA Credit ( World Bank) US$ 8.1 million of AusAID grant funds for technical assistance US$ 1.2 million of GIZ grant funds for TA US$ 0.6 million of GOL budget.

8. Progress in land titling since 1996-2009,Total: 600,000 p

9. The Lao Land Titling Project Project Success 1) Development and promulgation of the Land Laws, regulations, decrees, ministerial and departmental instructions in support of the systematic adjudication, land registration and valuation. 2)Issued the number of titles 600,000 parcels , an international standard of systematic adjudication system was developed . 3)Systematic surveying and adjudication skills of 800 staff have been successfully built in DOL, provincial and district land offices ( Capacity Building) 4) Development and implementation of a Valuation Information System (VIS) 5) Development of land information System

10. The Lao Land Titling Project Factors Contributing to Project Success (i) Strong commitment and support from the Government and the implementing agencies in terms of promulgation and revision of the Land Laws, decrees and regulations in support of the land adjudication, registration and valuation. (ii) Provision of financial support and strong technical inputs by the technical advisory team ( funded by WB,AusAID,GTZ). (iii)  Flexibility of the Government’s in mobilizing both government staff and private contract staff for field surveying and adjudication and provision of adequate financial incentives to field adjudication teams. (iv) Strong demands for land titles.

11. Project Benefits • Improving the security of land tenure for land users. • Modern land administration system (VIS) • Greater government revenue (number of registered subsequent transactions increase) and more effective collection from up-to-date database and maps • Community-endorsed policies, modernized laws • Modern mapping system - technology • Reduction of land boundary disputes • Easier access to institutional credit • Facilitate land markets

12. Socio–economic impact of LTP • Land Titles are widely recognized as the highest form of legal tenure security in Lao PDR. • There is a growing interest in basing lending on titles as collateral. • Titling increases value and perceived value of land • Land Titling provides more reliable data on land which has lead to significant increase in land Tax revenue generation. • 37% of land titles have issued in the name of women, 24% in the name of men and 28% as conjugal property in the name of both husband and wife (joint names) • Land Titling has resolved many pre-existing boundary and inheritance problems. - The Land Titling project needs to link more closely with Land Use planning( Zoning, Urban planning issues…) - Legally secure titling of land for households and communities needs to be urgently accelerated especially in rural areas.

13. NSEDP commitment to issue 1 mio legally secure land titles over next 5 years

14. Financing Gap for Land Tenure Security in Lao PDR - Needs for technical & financial support from international Organizations/ Institute/Donors: For the fiscal year 2011-2012: Government has approved budget total for the land sector 32 billion kip including : land titling program only 1.2 billion kip ( 0.2 millions US$) but to achieve 200 .000 parcels . For third Land titling project : 2011-2015 budget needs about 20 millions US$( to achieve 1 million parcels (unit cost 20$/parcel). Technical support to sustainably improve Land Use Planning at district level : 1,38 mio US$ ( FAO?)

15. Land management achievement 2010-11 • Developed National Land Policy and Land Use Master plan and submited to Government/NA for approval (support the national investment strategy). • Finishing land classification on provincial level (3) : Vientiane Capital, VTE and LPB provinces and in 34 districts. • Developed Land Use planning on micro level at villages in 47 poorest districts in the country(402 koumban and 2877 villages). • Land management and registration project(LMRP) in Xayaboury and LuangNamtha province: funded by GIZ (3.5million Euro/2008-11 ) • NorthernUplandDevelopment Program in 3 provinces ( GIZ ) • Land allocation and titling project: funded by government 2 billions kip( for Training & monitoring) • Collection data on state land leases and concessions/Land use Inspection projects funded by GIZ

16. Policy of Turning Land into CapitalObservation of land concessions • Land is still the main source of family food, incomes, livelihoods as well as family security; • Rapid growth of foreign interest and influence over land; • Uncoordinated Issuance of Land Concessions-Plantations, mining, hydro Dams; • Lack of Institutional Unity on critical Land Issues ( weak institutional and human resource capacities and competing mandates);

17. Issues on State Land Leases and Concessions ( summarize) • Legal framework on investment and land related issues is lacking clarity and consistency • Contracts and contract management are not reaching levels of proficiency; responsibilities on data collection are unduly split among several lines of administration • Price setting mechanisms are not in compliance with market rules • Monitoring of investments and enforcement of contracts are rarely being practiced •Dispute settlement arbitration/court cases on leases and concessions.

18. Suggestions on State Land Leases and Concessions 1. Investment approval procedures “One-stop-service” 2. Institutional responsibility( NA,GOL,Local: MPI, line ministries, governor of provinces and districts) 3. Contract regime ( no standard format for Hydropower, mining, agriculture/forestry and industry-services) 4. Fees (Establishing fee rates by law /decree, Granting land free of charge..) 5. Monitoring, Enforcement, and Dispute Settlement ( Monitoring payments by lessees/concessionaires, checking use of land as permitted by contractual rights and obligations: → Imposing penalties → Terminating contracts → Resorting to arbitration or file a suit in court

19. Thank You For your Attention E-mail: siphandone_s @hotmail.com