Instiglio worked with Suyo, an organization dedicated to the insurance of property rights, in studying the feasibility of alternative investment strategies, like Results-based Financing in a massive land titling context. The main purpose of the project was to design a Social Impact Bond (SIB) pilot for land formalization in Colombia. To do so, Instiglio analysed the potential reach of the intervention, proposed the payment metrics and the verification strategy for the SIB and established the roadmap for the design and implementation of a pilot in Caucasia, Colombia.
Country
Colombia
Timeline
2020
Type of Project
RBF Design or Implementation
Sector
Land Titling
Project
Partners
project description
Instiglio worked with Suyo,an organization dedicated to the insurance of property rights, and Tetra Tech, through USAID’s Land for Prosperity Program in designing the implementation of a Results-Based Financing (RBF) mechanism for mass land titling in Colombia. The main purpose of the project was to design a Social Impact Bond (SIB) for land formalization in Colombia. Its scope was to establish the roadmap for the design and implementation of a pilot in Caucasia, Colombia.
To achieve this goal, the Project followed four phases:
- Predesign of the SIB: Identification of the compromise of a municipality and the stakeholders in the design and implementation of the SIB, including a Cost Benefit Analysis (CBA)
- Technical Design of the SIB: Definition of the technical parameters of the SIB (payment metrics, payment functions, pricing and verification method)
- Design of the Governance of the SIB: Definition of the governance organisms, the contracting scheme and the terms of reference
- Design of Evaluation Process: Define the learnings agenda
Through these phases, Instiglio aimed to diagnose the potential of RBF to unlock sustainable financial sources for land titling in Colombia. Additionally, it seeked to equip Suyo, Tetra Tech, and USAID with a concrete plan to operationalize the design and implementation of an RBF strategy: the SIB. The final product was the design and implementation strategy of the SIB, recognizing this instrument is suited to respond to the financial challenges of the land titling process in Colombia.
The ultimate goal was to show the potential of RBF instruments, as SIBs, in massive land formalization through the pilot in Caucasia. Trough this pilot, key insights on the replicability of the SIB will be revealed. Instiglio aimed to leave all the technical details of the BIS and support the stakeholder engagement in all the process. The launch of the SIB will imply a major advance in the management and scale of property titling processes in Colombia.
