The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) REPORT NO.: RES34286 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SUPPORT TO THE LAND ADMINISTRATION AND GEOSPATIAL SYSTEM MODERNIZATION PROJECT APPROVED ON JANUARY 5, 2017 TO REPUBLIC OF UZBEKISTAN SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Jorge A. Munoz Task Team Leader: Anna Corsi Page 1 of 8 The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) ABBREVIATIONS AND ACRONYMS GKZGDK State Committee for Land Resources, Geodesy, Cartography and State Cadastre ICT Information and Communication Technologies IDA International Development Association IFI International Financial Institutions IISRPRC Integrated Information System for Real Property Registration and Cadastre KWPF Korea – World Bank Partnership Facility MRPRC Modernization of Real Property Registration and Cadastre PDO Project Development Objective PIU Project Implementation Unit TA Technical Assistance Page 2 of 8 The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) BASIC DATA Product Information Project ID Financing Instrument P161618 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 05-Jan-2017 31-Jan-2019 Organizations Borrower Responsible Agency State Committee for Land Resources, Geodesy, Republic of Uzbekistan Cartography and State Cadastre, Gosgomzemgeodescadastre Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 1.56 Total Financing 0.00 Financing Gap 0.00 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO The proposed Development Objective is to build the capacity of the State Committee for Land Resources, Geodesy, Cartography and State Cadastre (GKZGDK) to manage the development and maintenance of the computerized systems for land administration and geospatial information management. Page 3 of 8 The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) The TA project would accomplish this through knowledge transfer to, and the training of, GKZGDK staff in the digitization of land administration records and the adoption of modern fit-for-purpose ICT and geospatial technologies that enable management, as well as access and use of geospatial information by the public and private sector. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A4011 05-Jan-2017 26-Apr-2017 26-Apr-2017 31-Jan-2019 1.56 .25 1.31 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. The Korea World Bank Group Partnership Facility (KWPF) approved on May 20, 2016 a grant in the amount of US$1.557 million for the Support to the Land Administration and Geospatial System Modernization Project (SLAGeM Project). The Project became effective on April 26, 2017, three and half months after the World Bank Country Director’s signing of the Grant Agreement on January 5, 2017. 2. The Project Development Objective is to build the capacity of the State Committee for Land Resources, Geodesy, Cartography and State Cadastre (GKZGDK) to manage the development and maintenance of the computerized systems for land administration and geospatial information management which will be designed and implemented under the Bank-financed Modernization of Real Property Registration and Cadastre Project (MRPRC; P151746). Key development performance indicators are: (i) ICT Competence Center is trained in relevant international and industrial standards to implement the MRPRC project successfully; (ii) GKZGDK staff trained in the digitization/data conversion and quality control that are implementing the new digitization methodology and quality control and acceptance activities (Number); and (iii) Strategy for standards and procedures for access and use of geospatial information and data prepared. 3. The Project has the following components and sub-components: a. Component 1: Technical Assistance for the establishment of an Integrated Information System for Real Property Registration and Cadastre (IISRPRC) i. 1.A: Support for the development of the Real Property Registration and Cadastre System, which provides support for managing the incremental development and roll-out of a new ICT-based Integrated Information System for Real Property Registration and Cadastre (IISRPRC). ii. 1.B: Support for the Digitization of Real Property Registration and Cadastre Data, which provides support for the digitization of current paper property registration and cadastre records (including both attribute and geospatial data) for the new IISRPRC, and maintenance of the digitized data in the transitional period. Page iv of 8 The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) iii. 1.C: Support for the Use of Real Property Registry and Cadastre Data, which will provide support for enhancing public on-line use of IISRPRC data and the development of a modern framework and technological platform in compliance with the country's eGovernment Master Plan. iv. 1.D: Support for Strengthening the Legal Framework. b. Component 2: Institutional Strengthening, provides targeted training and knowledge transfer for the benefit of both institutional and private sector stakeholders. 4. GKZGDK, through the Project Implementation Unit (PIU) established under the MRPRC Project, is responsible for the overall implementation of the Project and for ensuring compliance with the established schedule and achievement of expected results. B. Project Status 5. The Project became effective on April 26, 2017, three and half months after the World Bank Country Director’s signing of the Grant Agreement on January 5, 2017. The initial delays were due to the Government’s internal administrative processes for approval and signing. Following effectiveness, the Project suffered further delays as explained below. The Project is now on track to meet its PDO with the requested 11-month extension. The current disbursement rate of the Project is 16 percent or US$250,000. 6. The Project is directly supporting the implementation of the MRPRC Project, which is financed by a Credit from the International Development Association and became effective on January 12, 2017. The MRPRC Project faced serious delays in the first year of its implementation, due to major Government changes that took place following the December 2016 Presidential Elections, including the reappointment of Cabinet and Heads of Administration. These major structural changes in the Government directly affected the implementation of all International Financial Institutions (IFI) projects, which were put on hold until the majority of these changes were finalized (June 2017). World Bank- financed operations were also impacted by the halt of activities, including associated projects like this Korea – World Bank Partnership Facility (KWPF)-financed project. Lack of PIU capacity and coordination with GKZGDK staff, and the existence of parallel, overlapping activities under the National Geographical Information System (NGIS) project, financed by other donors and implemented by GKZGDK, were also a cause for the delays. Regarding the NGIS project specifically, the overlap was in the development of the core functionalities of the IISRPRC and its piloting in selected regional offices, which was a critical step for the subsequent operationalization and roll out of the IISRPRC to be financed under the MRPRC Project, with support of the SLAGeM Project. The finalization of the NGIS pilot project was delayed until December 2017. 7. Once the internal governance structure within GKZGDK was strengthened and the project activities resumed, the Bank sent a letter to the Government inquiring on the MRPRC and SLAGeM projects progress and the Government’s commitment to their implementation. During the following October 2017 mission, the Government confirmed the importance of the MRPRC Project for Uzbekistan and the critical role of the SLAGeM Project for its successful implementation, as well as its willingness to accelerate the implementation pace and commitment to strengthen the PIU with more experienced personnel. 8. Since November 2017, new GKZGDK management and a new PIU are in place and project implementation (of both the MRPRC and the SLAGeM projects) has resumed. The World Bank Implementation Support Mission visited Tashkent, Uzbekistan during April 2-6, 2018, and again in October 22-26, 2018, and found that the Projects’ performance has noticeably improved since the October 2017 mission, especially in the areas of: (i) staffing of the PIU; (ii)progress with consultants’ selection; (iii) engagement with the Bank including very constructive participation in online (video) monthly meetings; (iv) revision of the annual work and procurement plans; and (v) timely completion of agreed actions.. The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) 9. In line with agreed Action Plan, the tender procedure for consulting services that provide continuous, on-the-ground Technical Assistance (TA) to GKZGDK was completed and the contract with the selected firm (Consortium Compet-Terra and FCG) was signed on May 11, 2018. The majority of the grant funds (US$1.15 million, or about 80 percent) are allocated to this contract. The contract became effective on July 2, 2018, after some delays in effectiveness due to mandatory contract registration obligations in force in Uzbekistan. Currently the contract is ongoing, and the deliverables are being provided according to the agreed schedule. Specifically, several technical reports and trainings have been delivered, and ongoing operational capacity building and technical assistance are being provided to support the smooth implementation of the MRPRC Project, hence the importance to align the timelines of implementation of these two projects. 10. The technical support and capacity-building activities provided by the SLAGeM Project have been critical for the acceleration of the MRPRC Project implementation pace and the effective undertaking of main investment activities. 11. There are no outstanding audits. C. Rationale for Restructuring 12. The grant-financed SLAGeM Project is designed to provide much needed continuous, on-the-ground support to GKZGDK to build the in-country Information and Communications Technologies (ICT) capacity, which is a critical constraint when developing modern, computerized land administration and management systems. The importance of intensive capacity building and technical support to ensure that the development and maintenance of such systems is effectively operational, efficient and responds to the country's needs cannot be over-emphasized. 13. Many critical activities under the MRPRC Project, including the development of the new IISRPRC, the mass digitization campaign of registration records and cadastral maps, and related institutional strengthening and capacity building, rely heavily on the support provided by this Project. 14. The Project is planned to close on January 31, 2019, while the contract with the company that is providing the ongoing, technical support to GKZGDK was signed on July 2, 2018. Thus, the time remaining for implementation has now been reduced to about seven months, as opposed to two years as originally planned. The causes of major initial delays have been resolved: the Government’s structural changes have now been completed as mentioned above, as well as the parallel donor-financed NGIS pilot project. The continuation of this technical support is fundamentally critical to enable GKZGDK to get off the ground the development of the new IT system for cadastre and registration and the digitization of the related data and build the capacity for its future maintenance. 15. The Project’s Moderately Satisfactory rating was confirmed during the World Bank Implementation Support Mission in October 2018 and corresponding ISR and the revised implementation schedule now shows the expected progress pace. The Project is now on track and the proposed change does not impact the overall risk associated with implementation. However, to achieve the PDO and to implement all the activities contained in the initial scope, an extension of the closing date to December 31, 2019 is needed. Such extension will ensure that maximum benefits of the TA are realized. II. DESCRIPTION OF PROPOSED CHANGES 16. It is proposed to modify the closing date to December 31, 2019, the implementation schedule of the Project’s activities will be adjusted accordingly: Task Name Proposed deadline The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) Component 1: Technical Assistance during December 1, 2019 IISRPRC implementation Component 1.A Support for the development of November 30, 2019 the Real Property Registration and Cadastre System Component 1.B Support for the Digitization of November 30, 2019 Real Property Registration and Cadastre Data Component 1.C Support for the Use of Real November 5, 2019 Property Registry and Cadastre Data Component 1.D Support for strengthening the November 21, 2019 Legal Framework Component 2: Institutional Strengthening November 30, 2019 17. Additional time is most needed for supporting: (i) the design, development and roll out of the IISRPRC (Component 1), for which it will be important to maintain the alignment with the implementation schedule of the MRPRC Project; and (ii) the development, testing and operational acceptance of the mass digitization tools and corresponding methodologies, subsequent pilot activities of mass digitization of registration and cadastral records in four pilot regions. Institutional strengthening and capacity building (under Component 2) will continue to be provided simultaneously with the provision of support under Component 1. 18. Current status and forecasted disbursement projections are presented in the table below (in thousands of US$): 19. According to the projections all the funds will be disbursed by the end of December 2019. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ The World Bank Support to the Land Administration and Geospatial System Modernization Project (P161618) Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A4011 Effective 31-Jan-2019 31-Dec-2019 30-Apr-2020 Note to Task Teams: End of system generated content, document is editable from here.