bvvg 15.10.2015 katja dells 0 state-owned agricultural land - a dormant treasure –

BVVG20.04.23Katja Dells

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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

1 INTRODUCTION 5432

BVVG

TASKS

• Interim management (short and long-term lease) until decision on restitution/allocation/privatisation

• Privatization

ABOUT BVVG

1 INTRODUCTION 5432Katja Dells

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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BVVG

SOME FIGURES

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51 INTRODUCTION 5432

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

1 INTRODUCTION 5432


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• Outdated cadastre and land register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

1 INTRODUCTION 5432


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2 POLICY OBJECTIVES, LEGAL AND INSTITUTIONAL FRAMEWORK

2 POLICY OBJECTIVES, LEGAL AND INSTITUTIONAL FRAMEWORK 43 51


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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

3 PROCEDURES AND TOOLS FOR SOAL MANAGEMENT 42 51

BVVG

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


BVVG

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


BVVG

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


BVVG

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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BVVG

PARCEL INFORMATION

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BVVG

SOAL FOR RENEWABLE ENERGY PROJECTS

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4 GOOD GOVERNANCE

4 GOOD GOVERNANCE32 51

BVVG

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


GOOD GOVERNANCE (1)

BVVG

GOOD GOVERNANCE (2)

RESULTS

Accountability

Transparency

Efficiency

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5 CONCLUSIONS

5 CONCLUSION321 4

BVVG

• 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

5 CONCLUSION321 4


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THANK YOU FOR YOUR ATTENTION!

CONTACTM. Sc. (Ag.) Katja Dells, International Consulting Dept.

BVVG Bodenverwertungs- und –verwaltungs GmbH, [email protected]

bvvg 15.10.2015 katja dells 0 state-owned agricultural land - a dormant treasure –

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