The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) REPORT NO.: RES49162 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF REAL ESTATE REGISTRATION PROJECT APPROVED ON OCTOBER 25, 2012 TO BOSNIA AND HERZEGOVINA URBAN, RESILIENCE AND LAND EUROPE AND CENTRAL ASIA Regional Vice President: Anna M. Bjerde Country Director: Linda Van Gelder Regional Director: Steven N. Schonberger Practice Manager/Manager: Christoph Pusch Task Team Leader(s): Paul Scott Prettitore The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ABBREVIATIONS AND ACRONYMS AF Additional Financing BiH Bosnia and Herzegovina FBH Federation of Bosnia and Herzegovina FGA Federation Administration for Geodetic and Real Property Affairs MoU Memorandum of Understanding PDO Project Development Objective PIU Project Implementation Unit RERP Real Estate Registration Project RGA Republic Administration for Geodetic and Real Property Affairs RS Republika Srpska The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) BASIC DATA Product Information Project ID Financing Instrument P128950 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 25-Oct-2012 31-Jul-2022 Organizations Borrower Responsible Agency Federal Administration for Geodetic and Real-Property Bosnia and Herzegovina Affairs of the Federation of BH,Republic Administration for Geodetic and Property Affairs of Republika Srpska Project Development Objective (PDO) Original PDO The project development objective is to support development of a sustainable real estate registration system with harmonized land register and cadastre records in urban areas of both the Federation of Bosnia and Herzegovina and the Republic of Srpska. Current PDO The project development objective is to support development of a sustainable real estate registration system with harmonized land registry and cadastre records in urban areas of both the Federation of Bosnia and Herzegovina and the Republika Srpska. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-90480 05-Mar-2020 02-Jul-2020 17-Dec-2020 31-Jul-2022 22.40 7.30 15.42 IDA-51880 25-Oct-2012 25-Jan-2013 23-Sep-2013 31-Dec-2020 33.96 32.13 0 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Progress towards the achievement of the Real Estate Registration Project’s (RERP) project development objective (PDO) and the performance of the Borrower and Implementing Agencies are considered Satisfactory. All current PDO indicators have met or exceeded their original end targets. RERP’s activities have also led to considerable, direct benefits to citizens and businesses of Bosnia and Herzegovina (BiH). Since the start of the original loan that closed on July 31, 2020, more than 2.1 million citizens (37 percent of which are women) have benefitted from land and property registration, representing nearly two-thirds of the population of BiH. These households have been provided land titles with data harmonized with cadastre records proving rights and have been given direct access to titles and cadastre documents online that can be used to request ID cards or as collateral for loans. 2. Although there are considerable achievements resulting from RERP’s activities, the project’s Implementing Agencies, FGA1 and RGA2, have requested an extension of RERP’s Additional Financing (AF) with a justification that delays caused by the prolonged process to declare effectiveness as well as the impacts of the COVID-19 pandemic. After AF approval by the World Bank’s Board of Directors on March 5, 2020, the Government of BiH took five-and-a-half months to officially approve the loan, which was faster than the average eight to ten months but still resulted in a considerable delay in effectiveness. The AF became effective at the end of December 2020, which left just 19 months for implementation of all AF activities (as opposed to the original 24 months). The COVID-19 pandemic also interrupted implementation, as infections and consequent quarantines of Project Implementation Unit (PIU) staff created constant interruptions in workflow. Cadastral municipality offices and land registration offices within courts were also closed for extended periods of time or were forced to work with fewer staff. Consultants hired to perform scanning and title registry activities were also prevented from starting or completing assignments because such work could not be conducted at home. As such—and based on the delays and the consequent inability to complete pending AF activities—it is estimated that 45 percent of AF funds would remain unspent by the current closing date of July 31, 2022. 3. Key activities that require extension of the project closing date include the following:  Completion of land registration and data harmonization in all of the municipalities that are targeted by RERP;  Procurement of ICT hardware and software that are needed for sustainability of the land informaton system to digitize, store, update, share and make publicly available at low-cost all land data and records, as well as the establishment of the ICT management structure that will ensure the sustainability of ICT investments under RERP;  Procurement and renovation of the Central Archive Building in Banja Luka, which is necessary for the replacement of ICT equipment and storage of land records in Republika Srpska, as well as completion of the Land Regsitry Office renovations;  Rollout of new, enhanced land surveying procedures in RS; and  Public information and awareness campaigns in municipalities that are still undergoing registration, with a focus on targeting vulnerable communities. 4. With an extension of the project closing date, it is estimated that an additional 250,000 land parcels would undergo registration, resulting in clear land titles for roughly 330,000 citizens of BiH (based on joint registration of married couples), of which around 120,000 are women. An additional 60 cadastral municipality offices have volunteered to join RERP and would also be included during the time of extension. Another three e-services would also be added under RERP activities, and additional Memorandums of Understanding (MoU) would be signed to expand the number of entities able 1 Federation Administration for Geodetic and Real Property Affairs. 2 Republic Administration for Geodetic and Real Property Affairs. The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) to access digitalized land records. The online land records database of Republika Srpska (eKatastar.rs) would also be upgraded, and the development of the utility cadastre in the entity could begin. 5. Currently, there are over 128,000 land parcels that have been updated in the cadastre and transferred to the land registry to harmonize data and issue a title. Extension of the project closing date will enable continuity in the work of the temporary land registry experts hired by the project and will help to avoid the backlog in the Federation of Bosnia and Herzegovina (FBH) courts. Additionally, the land rights of those affected citizens would be strengthened since data in the cadastre and registry would be harmonized. 6. Donor support to the BiH real estate registration system will also benefit from a project closing date extension. Currently, there are initiatives such as efforts to improve land taxation, that are financed by other donors (Sweden, Norway, the Netherlands, and the European Union). These separate donor initiatives build upon the harmonized textual and spatial land records, e-services and other activities under RERP. As such, the Government of BiH would more broadly benefit from other donor initiatives if RERP is extended, as they would be able to cover larger areas of BiH given the increased reliability of land records in FBH and RS. 7. Based on the cruciality of RERP’s activities to the sustainability of the real estate registration system of BiH, particularly the investments in ICT hardware for ensuring a sustainable, digital land information system, the task team believes that a project extension is justified and would allow for the full achievement of the PDO. The task team also confirms the adequacy of project financial management and that there are no outstanding audits. To ensure the timely completion of all outstanding activities, RERP’s Implementing Agencies have produced Action Plans with strict timelines to ensure accountability and timeliness of implementation, as this will be the only closing date extension under the AF. Having reviewed the Action Plans and agreed on them with the Government of BiH, the task team considers them acceptable, as well as feasible and realistic for ensuring that the PDO and intermediate results will be achieved. II. DESCRIPTION OF PROPOSED CHANGES 8. The proposed changes under this Restructuring are an extension of the AF for an additional 24 months and a revision of the Results Framework to upgrade an Intermediate Outcome indicator to a PDO-level indicator in order to better measure sustainability of the real estate registration system of BiH. In addition to the activities described in the previous section, the extension would allow several project indicators covering the digitalization of cadastral maps, the establishment of digital archives, an increase in the number of e-services, implementation of public information campaigns and the establishment of an ICT management structure to be achieved. This is the first extension of the RERP under the AF, and no further extensions are planned. 9. Under this Restructuring, the following Intermediate Outcome indicator will be elevated to a PDO-level indicator: “Sustainable ICT management structure established and operational.” While the Project Appraisal Document states that sustainability is measured, inter alia, by the delivery of quality services without discrimination and within a reason able time, as well as the availability of reliable information to facilitate investments, RERP’s current PDO indicators do not adequately capture the sustainability dimension of the real estate registration system. A sustainable ICT system for digital land records is considered key within the context of RERP’s interventions in the BiH real estate registration system. The project’s investments in ICT, as well as capacity building programs for relevant IT staff to maintain the system upon project closing, are a cornerstone for ensuring harmonized land registry and cadastre data as well as its being made publicly accessible online, which is covered with the other PDO indicators. Pending activities such as the completion of the RS Central Archive, the rollout of a document management system, and operationalization of the European Terrestrial The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Reference System will contribute to the achievement of this new PDO indicator, as well as other relevant Intermediate Outcome indicators that have not yet been achieved during AF implementation. 10. The end dates of all RF indicators will also be extended to July 31, 2024—in line with the proposed closing date extension. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-90480 Effective 31-Jul-2022 31-Jul-2024 30-Nov-2024 31-Jan-2020, 31-Jul- IDA-51880 Closed 31-Jul-2018 2020, 31-Dec-2020, 23-Aug-2021 . The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) . Results framework COUNTRY: Bosnia and Herzegovina REAL ESTATE REGISTRATION PROJECT Project Development Objectives(s) The project development objective is to support development of a sustainable real estate registration system with harmonized land registry and cadastre records in urban areas of both the Federation of Bosnia and Herzegovina and the Republika Srpska. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Cadastral Municipalities with harmonized land registry and cadastre data/established REC Cadastral Municipalities (CMs) with harmonized land registry and cadastre 35.00 565.00 565.00 665.00 data/established REC in urban areas (Number) Action: This indicator has been Revised CMs with land registry and cadastre/Real Estate Cadastre data publicly accessible 8.00 100.00 100.00 100.00 online (Percentage) Action: This indicator has been Revised Direct project beneficiaries (Number) 90,000.00 1,680,000.00 1,730,000.00 1,880,000.00 Action: This indicator has been Revised Female beneficiaries (Percentage) 30.00 35.00 35.00 35.00 No formal IT management Sustainable ICT management structure Sustainable IT management structure (RS); No formal IT established and operational (Text) structure established and coordination structure (FBH) The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 operational (RS); IT Coordination structure operational (FBH) Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Component A - Real estate registration data development Public awareness campaign completed for RERP harmonization/REC 0.00 530.00 550.00 630.00 establishment in target areas (Number) Action: This indicator has been Revised Cadastral Municipalities (CMs) covered 0.00 530.00 550.00 630.00 by the vulnerability mapping (Number) Action: This indicator has been Revised Target land area with use or ownership rights recorded as a result of project 0.00 680,000.00 680,000.00 766,875.00 (Hectare(Ha)) Action: This indicator has been Revised Land parcels with use or ownership rights recorded as a result of the project 0.00 1,400,000.00 1,400,000.00 1,620,571.00 (Number) Action: This indicator has been Revised The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Cadastral Municipalities (CMs) with new 0.00 0.00 11.00 20.00 cadastral survey (RS). (Number) Action: This indicator has been Revised European Terrestrial Reference System (ETRS) in use in cadastral surveys in 0.00 0.00 100.00 100.00 Bosnia and Herzegovina (RS) (Percentage) Action: This indicator has been Revised Cadastral maps in digital form of the 65% (RS); 27% (FBH) 77% (RS); 67% (FBH) 80% (RS); 69% (FBH) 85%(RS); 71% (FBH) entity territory (Text) Action: This indicator has been Revised Component B - Real estate registration infrastructure development Analytical reports produced on disaggregated data to support decision- No Yes Yes Yes making (gender) (Yes/No) Action: This indicator has been Revised Real Estate cadastre Offices 0.00 21.00 22.00 24.00 purchased/renovated (RS) (Number) Action: This indicator has been Revised Land registry and cadastre offices 29.00 50.00 55.00 58.00 renovated (FBH) (Number) Action: This indicator has been Revised Business model for IT Business model for IT Sustainable IT management No formal IT management Sustainable ICT management structure management structure developed management structure structure established and structure (RS); No formal IT established and operational (Text) (RS); MOU signed between FMoJ operational (RS); TOR for the IT operational (RS); IT Coordination coordination structure (FBH) and FGA to establish IT Coordination structure drafted structure operational (FBH) The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 coordination structure (FBH) and staff appointed and trained (FBH) Action: This indicator has been Marked for Deletion E-services type provided for key 2.00 12.00 13.00 16.00 stakeholders (Number) Action: This indicator has been Revised No. of delivered e-services per year 0.00 3,300,000.00 3,100,000.00 1,700,000.00 (Number) Action: This indicator has been Revised Number of external systems or registries interoperable with the cadastre and real 1.00 1.00 3.00 6.00 land registration systems (Number) Action: This indicator has been Revised Cadaster and property registration No No No Yes systems exchange data (FBiH) (Text) Action: This indicator has been Revised IT System capable to maintain No Yes Yes Yes harmonized data (Yes/No) Action: This indicator has been Revised Digital archive operational in priority 3.00 110.00 114.00 125.00 offices (Number) Action: This indicator has been Revised Central analog and digital archive Building acquired and renovation Central Archive established and No Central Archive. Building renovation ongoing established and operational (RS) (Text) plans prepared operational. The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Action: This indicator has been Revised Component C - Policy and institutional development, and project management Studies on the financial sustainability of the real property registration system 0.00 0.00 0.00 2.00 (Number) Action: This indicator has been Revised Feasibility Studies on the completion of data harmonization (FBH) and REC 0.00 0.00 0.00 2.00 establishment (RS) (Number) Action: This indicator has been Revised Volume of mortgages: 15810, Volume: 26,500, Value: 848m (RS); Volume 28,500, Value: 912m (RS); Volume: 27,500, Value: 880m (RS); Value: 2.200 million (RS); Volume Volume: 242.000, Value: 7,744m Volume: 260,000, Value: 8,320m Volume and value of mortgages (Text) Volume: 250,000, Value: 8,000m of mortgages: 90.000, Value: (FBH) (FBH) (FBH) 2,880 million Action: This indicator has been Revised Volume: 57,000, Value: 525m (RS); Volume: 58,000, Value: 534m (RS); Volume: 59,000, Value: 543m (RS); Volume and value of transactions or 44000/ 405 million* (RS); Volume: 100,000, Value: 920m Volume: 118,000, Value: 1,086m Volume: 130,000, Value: 1,196m requests for registration in land registry 70,000/644 million**(FBH) (FBH) (FBH) (FBH) offices (Text) Action: This indicator has been Revised Public Awareness Campaign completed 0.00 4.00 6.00 7.00 (Number) Action: This indicator has been Revised Customer Surveys completed (Number) 0.00 4.00 4.00 6.00 Action: This indicator has been Revised The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 User perception of quality of real estate registration services, private and public 75.00 80.00 sector users is maintained (Percentage) Action: This indicator has been Revised Impact Evaluation Survey completed 0.00 3.00 3.00 4.00 (Number) Action: This indicator has been Revised No. of participants trained (Number) 1,047.00 8,350.00 9,000.00 9,800.00 Action: This indicator has been Revised IO Table SPACE The World Bank REAL ESTATE REGISTRATION PROJECT (P128950)