The World Bank Report No: ISR14446 Implementation Status & Results Macedonia, former Yugoslav Republic of Real Estate Cadastre & Registration Project (P083126) Public Disclosure Copy Operation Name: Real Estate Cadastre & Registration Project (P083126) Project Stage: Implementation Seq.No: 24 Status: ARCHIVED Archive Date: 02-Jun-2014 Country: Macedonia, former Yugoslav Republic of Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Agency for Real Estate Cadastre, MOF- Authority for Legal and Property Affairs Key Dates Board Approval Date 15-Mar-2005 Original Closing Date 31-Dec-2009 Planned Mid Term Review Date 10-Dec-2007 Last Archived ISR Date 08-Dec-2013 Effectiveness Date 08-Jul-2005 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 10-Dec-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to build an efficient and effective real estate cadastre and registration system, contributing to the development of efficient land and real estate markets. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Completion of the Real Estate Cadastre and Registration of Rights 10.72 Institutional Development and Improving Service Delivery. 5.42 Development of Land Policy 0.82 Project Management 1.11 Digital Cadastre Map and Web-GIS 6.92 Support for ALPA 1.45 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The Project is on track to meet its development objective (PDO), which is to build an efficient and effective real estate cadastre and registration system. There is a remarkable Page 1 of 8 The World Bank Report No: ISR14446 progress on two out of four PDO indicators—increased number of transactions in land and real estate, and increased number of mortgages using property as collateral. The trend in the increase of the two indicators remains strong and the targets have already been exceeded: 59% increase in number of transactions and 108% increase in the number of mortgages vs. the target of 20% over the 2009 baseline figure. Customer satisfaction, which is the third PDO indicator, is to be measured through a final customer survey scheduled for late 2014. The previous survey conducted in 2012 shows average customer satisfaction (measured on the 1 to 5 scale) of 3.6 vs. 3.8 target, and 3.3 vs. 3.5 target for the Agency Public Disclosure Copy for Real Estate Cadastre (AREC) and the Authority for legal and Property affairs (ALPA), respectively. However, the progress on the use of digital records for the delivery of routine services, which is the fourth PDO indicator —has been lagging due to the slow progress on the digitization of cadaster maps (DCM) which was the most important investment under the Additional Financing for the project. Currently, there is only about 27% of the territory covered with digital maps vs. the target of 70 %. A revised action plan has been prepared with realistic quarterly targets to enable better monitoring of the progress. Meeting the targets on digitization is at risk due to a complex quality control process in AREC which needs to be reconsidered, but also due to the funding issue - disbursement limit imposed by the Ministry of Finance on consultants services in particular - which hinders the progress on all activities conducted through engagement of high number of individual sort-term consultants, such as the digitization. Apart from the digitization process, all other project activities are on track to be completed with targets achieved by the current closing date which is June 30, 2015. Actions agreed during the previous mission have been mainly met. Locations Country First Administrative Division Location Planned Actual Macedonia Not Entered Opstina Skopje Macedonia Not Entered Skopje Macedonia Not Entered Opstina Bitola Macedonia Not Entered Opstina Gostivar Macedonia Not Entered Opstina Kicevo Macedonia Not Entered Opstina Kumanovo Macedonia Not Entered Opstina Struga Macedonia Not Entered Opstina Tetovo Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Increased number of transactions in land and Text Value 93,240 Baseline plus 59.4 % Baseline plus 20% real estate Date 31-Dec-2009 12-May-2014 30-Jun-2015 Comments Annual indicator. End target End target increased from substantially exceeded. baseline plus 10% to baseline plus 20 % and extended to June 30, 2015. Increased number of mortgages using property Text Value 6,261 Baseline plus 107.6% Baseline plus 20% as collateral Date 31-Dec-2009 12-May-2014 30-Jun-2015 Page 2 of 8 The World Bank Report No: ISR14446 Comments Annual indicator. End target End target increased from substantially exceeded. baseline plus 10% to baseline plus 20% and extended to June 30, 2015. Public Disclosure Copy Increased satisfaction of customers with Text Value 3.67 for AREC 3.6 for AREC; 3.3 for ALPA 3.8 (out of 5) for AREC; 3.5 efficiency of the system (out of 5) for ALPA. Date 10-Nov-2009 12-May-2014 30-Jun-2015 Comments 1-5 scale. 1-5 scale. Survey performed End target decreased from 4 every other year. The last to 3.8 and extended to June survey completed in June 30, 2015. 2012. This survey was a baseline survey for ALPA. Next survey planned for late 2014 and it will be the final customer satisfaction survey under the project. Increased utilization of digital records Percentage Value 20.75 27.75 70.00 supporting registration and cadastre services. Date 31-Dec-2009 12-May-2014 30-Jun-2015 Comments Percentage of the country Progress slow, expected to New PDO level indicator territory where cadastral improve substantially in the introduced to better capture maps are maintained digitally next 6 months. the impact of investments with routine cadastre services under the Additional delivered using digital Financing. cadastre maps. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Target land area with use or ownership rights Hectare(Ha) Value 0.00 1367800.00 1367800.00 recorded as a result of project Date 31-Dec-2005 12-May-2014 31-Dec-2010 Comments This is one of the Core Land Target achieved under the Sector Indicators monitored original loan, end target date Public Disclosure Copy by the Bank across all land revised to reflect this fact. administration projects. Land parcels with use or ownership rights Number Value 0.00 1733000.00 1733000.00 recorded as a result of the project Date 31-Dec-2005 12-May-2014 31-Dec-2010 Comments This is one of the Core Land Target achieved under the Sector Indicators monitored original loan, end target date by the Bank across all land revised to reflect this fact. administration projects. Page 3 of 8 The World Bank Report No: ISR14446 Land parcels with use/ownership rights Number Value 0.00 468000.00 468000.00 recorded as a result of project-female Sub Type Date 31-Dec-2005 12-May-2014 31-Dec-2010 Breakdown Comments This is one of the Core Land Target achieved under the Public Disclosure Copy Sector Indicators monitored original loan, end target date by the Bank across all land revised to reflect this fact. administration projects. Target popln with use or ownership rights Number Value 0.00 1109500.00 1109500.00 recorded as a result of the project Date 31-Dec-2005 12-May-2014 31-Dec-2010 Comments This is one of the Core Land Target achieved under the Sector Indicators monitored original loan, end target date by the Bank across all land revised to reflect this fact. administration projects. Avg no. of days to complete recordn of Number Value 30.00 1.50 1.00 purchase/sale of property in land adm systm Date 31-Dec-2005 12-May-2014 30-Jun-2015 Comments This is one of the Core Land Sector Indicators monitored by the Bank across all land administration projects. It deteriorated over the last year due to office staff being mainly focused on the digitization work. Avg no. of days to complete recordn of Number Value 30.00 1.50 1.00 purchase/sale of property–Urban Sub Type Date 31-Dec-2005 12-May-2014 30-Jun-2015 Breakdown Comments This is one of the Core Land Sector Indicators monitored by the Bank across all land administration projects. Avg no. of days to complete recordn of Number Value 10.00 1.20 1.00 purchase/sale of property–Rural Sub Type Date 31-Dec-2005 12-May-2014 30-Jun-2015 Public Disclosure Copy Breakdown Comments This is one of the Core Land Sector Indicators monitored by the Bank across all land administration projects. Percentage of transactions registered within Text Value 30% About 80% of all transactions 90% registered within 3 days the established service standards. registered within 3 days. Date 31-Jan-2005 12-May-2014 30-Jun-2015 Comments Registering a transaction in End target extended to June Skopje office takes less than 30, 2015. 3 days in all cases but (i) Page 4 of 8 The World Bank Report No: ISR14446 when a field survey is required , or (ii) when a registration is done in so called "REC in maintenance". Public Disclosure Copy In these cases it takes about 10 days. All transactions in local offices (29 offices) take less than 3 days. There is an increase in time for registering a transaction compared to 2012, due to the focus of all offices on completing the digitization. AREC has completed and adopted a strategic Text Value No strategic business plan, no Strategic Business Plan and Strategic Business Plan and plan, a human resources development plan. HR development plan. HR development plan HR development plan regularly updated. regularly updated. Date 31-Dec-2005 12-May-2014 30-Jun-2015 Comments AREC's strategic and HR development plan will need to be updated at least once before the new Closing Date. Key land and real estate policies formulated Text Value n/a 4 land policy studies 5 land policies formulated and adopted. completed under the additional financing, 4 more completed under the original loan. Date 31-Jan-2005 12-May-2014 30-Jun-2015 Comments Under AF the following End target extended to June studies were completed: (1) 30, 2015. State Land Management policy study, (2) Indemnity Fund policy study and (3) NSDIstrategy completed. (4) Public Disclosure Copy Feasibility study for mass property valuation system completed; There is additional study ongoing (5) studyon construction land. Regular M&E system fully functional. Text Value No M&E system. M&E system fully functional. M&E system fully functional. Date 31-Dec-2005 12-May-2014 30-Jun-2015 Comments Functional M&E system is critical for evaluating the impact of reforms introduced Page 5 of 8 The World Bank Report No: ISR14446 to AREC's and ALPA's internal procedures and services. Customer surveys are implemented. Text Value No customer surveys Customer surveys conducted. Customer surveys conducted. Public Disclosure Copy conducted. Date 31-Dec-2005 12-May-2014 30-Jun-2015 Comments Last customer survey One additional customer conducted in 2012. Next survey will need to be survey will be conducted in conducted before the new late 2014. Closing Date. AREC web portal created and digital cadastre Text Value No AREC Portal; digital AREC web portal is being AREC web portal created and maps available online for 70% of territory cadastre maps available created. Digital cadastre digital cadastre maps online for 19 % of territory. maps available online for available online for 70% of about 27% of the country's territory. territory. Date 31-May-2010 12-May-2014 30-Jun-2015 Comments Progress slow. End target extended to June 30, 2015. Strategy for ALPA role and mandate produced Text Value No strategy Strategy completed and in Strategy completed in year 3 implementation. and implementation underway. Date 31-May-2010 12-May-2014 30-Jun-2015 Comments Strategy is being developed. Strategy completion extended to year 3, and end target extended June 30, 2015. Number of ALPA offices renovated and Text Value 0 24 24 outfitted Date 31-Dec-2009 12-May-2014 30-Jun-2015 Comments Renovations in one additional office - Struga - ongoing. Total of 34 offices were equipped with IT, networking Public Disclosure Copy and cabling and Internet connection. Number of urban land privatization cases Number Value 64500.00 154931.00 170000.00 resolved Date 31-Dec-2009 12-May-2014 30-Jun-2015 Comments Page 6 of 8 The World Bank Report No: ISR14446 NSDI strategy completed Text Value no NSDI strategy NSDI strategy completed and NSDI strategy completed and adopted by the Government. adopted by government Date 30-Apr-2009 12-May-2014 31-Dec-2013 Public Disclosure Copy Comments Also, NSDI law was adopted. End target date revised to December 2013. End target is to have NSDI developed and adopted in the 3rd year of AF. GNSS transformation parameters available for Text Value no accurate transformation 1,988 triangulation points 2,000 triangulation points public use parameters available completed and available for completed and available for public use. public use. Date 31-Dec-2009 12-May-2014 30-Jun-2015 Comments Annual indicator. Target End target extended to June achieved. 30, 2015. Data on Financial Performance (as of 24-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P083126 IBRD-47680 Closed 15-Mar-2005 06-Jun-2005 08-Jul-2005 31-Dec-2009 31-Dec-2010 P083126 IBRD-79280 Effective 11-May-2010 24-Sep-2010 11-Nov-2010 31-Dec-2013 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083126 IBRD-47680 Closed USD 14.00 13.06 0.94 13.41 0.00 103.00 P083126 IBRD-79280 Effective USD 12.10 12.10 0.00 7.23 4.85 60.00 Disbursement Graph Public Disclosure Copy Page 7 of 8 The World Bank Report No: ISR14446 Public Disclosure Copy Key Decisions Regarding Implementation Revised Action Plan with interim quarterly monitoring&evaluation targets for achieving the target of 70 % of the country territory covered with digital maps prepared by May 15, 2014. This action was completed by AREC within the agreed deadline. Restructuring History CD Decision on 14-Apr-2010, Level two Approved on 14-Jun-2010, Level 2 RVP Decision on 30-Jul-2013 Related Projects P119688-AF-REAL ESTATE CADASTRE & REGISTRATION PROJECT Public Disclosure Copy Page 8 of 8