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State-Owned Agricultural LandState-Owned Agricultural Land- - A Dormant Treasure –A Dormant Treasure –
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CONTENT
1 INTRODUCTION
2 POLICY OBJECTIVES / LEGAL- / INSTITUTIONAL FRAMEWORK
3 PROCEDURES AND TOOLS FOR SOAL MANAGEMENT
4 GOOD GOVERNANCE
5 CONCLUSIONS
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1 INTRODUCTION
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TASKS
• Interim management (short and long-term lease) until decision on restitution/allocation/privatisation
• Privatization
ABOUT BVVG
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BVVG´S MISSION
• Founded in 1992 as subsidiary of the German Treuhandanstalt (THA-Privatization Agency)
• Portfolio in 1992: approx. 1.8 m ha of state-owned agricultural and 1.4 m ha of state-owned forest land
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SOME FIGURES
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CROATIA 0,89 m ha
GERMANY 0,22 m ha
KAZAKHSTAN 85,5 m ha
MONGOLIA 112,4 m ha
RUSSIA 276,5 m ha (including communal ownership)
SERBIA 0,43 m ha
UKRAINE 10 m ha
STATE-OWNED AGRICULTURAL LAND IN
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EFFECTIVE MANAGEMENT OF SOAL TO
• Support development of a viable agricultural sector
• Support access to land
• Establish secure land tenure
• Facilitate food security
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• Outdated cadastre and land register
No data on SOAL
• Unclear or missing policy objectives
• Incoherent or missing legal framework
• Unclear or overlapping competencies and
responsibilities
WHAT HAMPERS EFFECTIVE MANAGEMENT
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2 POLICY OBJECTIVES, LEGAL AND INSTITUTIONAL FRAMEWORK
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• Improving the agrarian structure
• Rural development
• Social equity, remediation, compensation
• Fiscal objectives
• Environmental objectives, climate change mitigation
POLICY OBJECTIVES
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PRINCIPLES
• Should clearly reflect the policy objectives
• Has to be coherent
• Laws should govern main objectives and principles
• Procedural and operational regulations should be
regulated in by-laws / administrative guidelines
LEGAL FRAMEWORK
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DIFFERENT INSTITUTIONAL SETTINGS
• Establishing of a SOAL managing agency or unit • SOAL management by an privatization agency• Use of existing administrative structures
PRINCIPLES
• Limit no. of different institutions involved Avoiding overlapping of competencies and
responsibilities• Avoid creating supra agencies responsible for numerous
land management tasks Diverging objectives in one agency
INSTITUTIONAL FRAMEWORK
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3 PROCEDURES AND TOOLS FOR SOAL MANAGEMENT
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SOAL ALLOCATION
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Short term lease agreements
Long term lease agreements
Long term use rights
Allocation free of charge
Land sales
Keep in state-ownership
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TENDER / AUCTION / DIRECT CONTRACTS
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PROCEDURES PRO‘S CON‘STENDER • Equal chances to access SOAL
• Price achieved reflects market value• All bids valid• Additional criteria than highest price can
be considered
• Can enable corruption• Forcing up of prices
AUCTION • Equal chances to access SOAL• Price achieved reflects market value• Less opportunity for corruption
• Forcing up of prices• With fall of the hammer
other bids have no validity – procedure has to be restarted if winning bid does not lead to contract conclusion
DIRECT CONTRACTS
• Facilitates allocation to eligible parties, e.g. in the scope of farmers support programms
• No equal chances to get acces to SOAL
• Determination of prices difficult
• Danger of corruption
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LAND VALUATION
• But, land markets often poorly developed no comparison prices
• Complex valuation methods requiredTEGoVA (The European Group of
Valuers‘ Associations)
• Implementation of market monitoring institutions suggested
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• Management of SOAL requires information on land values
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IT SUPPORT• Land information system providing all required spatial and
non spatial data
• E.g. cadastral data, contract information, pollution data, wind suitablility areas, valuation data, land use data, spatial planning data
Basis for decision on how to allocate SOAL in the most suitable way
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PARCEL INFORMATION
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SOAL FOR RENEWABLE ENERGY PROJECTS
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4 GOOD GOVERNANCE
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GOOD GOVERNANCE (1)MEASURES
•External and internal monitoring measures•Independent audit•Automated business processes•Checks and balances in the SOAL agency
Four eyes principle staff rotation internal audit Dept. anti-corruption directives and officer bottom-up reporting accounting standards
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Management Board
Central DepartmentSelling/Leasing
TeamManagement &
Evaluation
TeamAwarding &
Selling
verticalchecking of procedures(Volume of
Transactions, supervision)
horizontal crossingsof operations
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GOOD GOVERNANCE (1)
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GOOD GOVERNANCE (2)
RESULTS
Accountability
Transparency
Efficiency
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5 CONCLUSIONS
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• SOAL bears great potential to be used for achieving land policy objectives
• Requires efficient, transparent and goal oriented management• Requires favorable frame conditions• States have to commit themselves to put SOAL into effective
use• Global community can support by
- collecting and sharing spatial and non spatial data related to SOAL
- strengthening good governance approaches- support knowledge transfer and capacity building
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CONCLUSIONS
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THANK YOU FOR YOUR ATTENTION!
CONTACTM. Sc. (Ag.) Katja Dells, International Consulting Dept.
BVVG Bodenverwertungs- und –verwaltungs GmbH, [email protected]
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