The World Bank Report No: ISR5606 Implementation Status & Results Serbia Real Estate Cadastre & Registration Project (Serbia) (P078311) Public Disclosure Copy Operation Name: Real Estate Cadastre & Registration Project (Serbia) Project Stage: Implementation Seq.No: 21 Status: ARCHIVED Archive Date: 29-Aug-2011 (P078311) Country: Serbia Approval FY: 2004 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Republic Geodetic Authority Key Dates Board Approval Date 25-May-2004 Original Closing Date 31-Oct-2010 Planned Mid Term Review Date 08-Feb-2008 Last Archived ISR Date 29-Aug-2011 Effectiveness Date 03-Nov-2004 Revised Closing Date 29-Feb-2012 Actual Mid Term Review Date 08-Feb-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project seeks to increase confidence and lower transaction costs by building a more efficient property registration andcadastresystem, with the purpose of contributing to the development of effective real property markets. This will be achievedthrough two components: Operational Development and Support (including formation of the real estate cadastre in priority urbanareas, support for secondary transaction system, focused support for the REC in Belgrade, IT systems modernization, and legalextension services); and Capacity Building and Institutional Strengthening (including public awareness campaigns, businessplanning, training, IT strategy, legal framework completion). Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost OPERATIONAL DEVELOPMENT AND SUPPORT 33.00 INSTITUTIONAL STRENGTHENING AND CAPACITY BUILDING 6.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The Project Development Objective (PDO) is to build a more efficient property registration and cadastre system, with the purpose of contributing to the development of real property markets. The Bank team finds that the Project development objective has been achieved as the real property market has greatly improved over the period of the project. Measured by Page 1 of 6 The World Bank Report No: ISR5606 the PDO indicators the project is meeting its targets. The PDO indicators expected approximately a 25% increase in the: number of transactions; proportion of transaction that involved mortgages; and customer satisfaction. The number of transactions increased by 27% and the percentage of mortgages to 24% in 2011; and the services provided by RGZ are now considered to be third amongst the most trustworthy institutions in Serbia behind the church and police. It should be noted that the percentage increase in transactions has been higher than the 2011 figure, but the real estate market was affected by the overall financial crisis. Doing business 2012 records Serbia as the most improved country in the world Public Disclosure Copy for registering property in 2011, moving to rank 39 from rank 98. Indeed in 2005 when records for registering property were first introduced by Doing Business, it was recorded that registering property took 186 days in Serbia, whereas Doing Business records that it takes 11 days in 2012. It should also be noted that the time taken within RGA is only one of the procedures that Doing Business takes into account, and that it records this procedure within RGA as taking 5 days if 'urgent procedure' fees are paid. Five days is the target that was set to be achieved at the beginning of the project. Real Estate Cadastre (REC) coverage has reached 98 percent of all cadastral municipalities (CMs) in Serbia, while the REC creation in the remaining 2 percent of the CMs is ongoing . Republic Geodetic Authority realistically targets to complete all REC creation work by the Project closure, which was extended to February 29, 2012. The cadastre map conversion program has been very successfully achieved and it substantially exceeds the Project targets. The current level of digitalization has reached 100 percent for scanned raster maps, while digital vectorized cadastre maps will be digitally maintained in 50 percent of CMs, covering 41 percent of the country territory by the end of the Project. There are two areas where improvements could have been made. (i) The contract for the unified software and modern ICT system for REC was canceled because of non- performance by the contractor and therefore improvements to the efficiency of the registration service could have been better; and (ii) there is room to improve the perception of the quality of services by the clients. Recent customer surveys showed that the public found the procedures overly complex and some were not convinced about the ultimate value of registering their rights. RGA management remains committed to meeting the 5 days service standard and several steps are being taken to reduce the time needed for registration, such as: i) introducing the “urgent� procedure for a standard sale registration, and for an increased fee; ii) establishing RGA “windows� in urban municipalities where citizens can submit their request for cadastre services; and iii) providing a citizen with a text message notification when the request is processed. RGA is in the process of modifying it's Information Technology strategy in order to make improved services more standard and transparent, and have developed a stepwise approach to the development of a centralized ICT system ensuring web-access to the REC data and e-services. The IP rating had been at moderately satisfactory level because the previous IT system development contract had to be canceled and it was unclear how the RGA were going to proceed. Now that a strategy has been developed it is reasonable to upgrade the IP status to satisfactory. Locations Country First Administrative Division Location Planned Actual Serbia Not Entered Serbia ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy Increased number of transactions in land and Text Value 100,000 127,403 (27 % increase over 25% increase over the real estate. the baseline) baseline value Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments This is the number of buying/ Baseline data represent the Target achieved and selling agreements and is an assessment of the total exceeded. The 2011 figure is estimate as accurate figures number of all transactions in lower than in recent previous were not available. Most 2003. The number reported years, before the financial transactions were recorded at here represents the total crisis, where the figurewas as the land book offices of the number of transactions high as a 71% increase. local courts. recorded by the tax office. Page 2 of 6 The World Bank Report No: ISR5606 Increased satisfaction of customers of RGZ Text Value 62% 8% increase on the base line 25% increase on the baseline services figure. figure. Date 01-Apr-2004 31-Dec-2011 29-Feb-2012 Public Disclosure Copy Comments 62% of respondants of the The final survey was Services are dramatically 2004 survey state that fees completed in May 2011. improved and customers are are not too high and services There is 85% of people who generally satisfied. are satisfactory. are aware of the RGA services on property registration compared to 60% in 2008. There is an increased level of positive reputation of RGA in the society from 66% in 2008 to 78% in 2011. And finally there is 67% of people who assess the quality of RGA services as good, very good, or excellent. Only 13% consider the services unsatisfactory. The base line survey did not have a category for 'neither satisfied nor dissatisfied', and it could be argued that87% equates to the figures in 2004, representing a 35% increase on the base rate. Increase in numbers of mortgages as a Text Value 2.9% of total number of 828% increase on the base 25% increase on baseline percentage of the total number of transactions transactions were mortgages. line figure. figure. Date 30-Dec-2005 31-Dec-2011 29-Feb-2012 Comments Baseline in 2003 was There were 36,495 in 2011. The figure of 25% has been estimated at 0.3%, but more This equates to 24% of the exceeded at times. Figure for accurate figures were found in total number of transactions 2011 is 24%. 2005. that are mortgages. From Public Disclosure Copy 2.9% to 24% represents an 828% increase. Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR5606 Indicator Name Core Unit of Measure Baseline Current End Target (A3) Creation of Real Estate Cadastre for 1940 Text Value 0 3,874 sq km 1940 sq km sq km in 50 cities and towns Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Public Disclosure Copy Comments REC covers 970 sq km in the Target achieved and original cities and towns and exceeded. 2,448 sq km in additional locations. There is a work in progress in additional 456 sq km which will be completed by the end of Feb 2012. (A4) Creation of REC for 30 cadastral Text Value 1 CMs 54 CMs 37 CMs municipalities in Belgrade Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments 7 additional CMs expected to Original target of 31 CMs in be completed by Feb 29. Belgrade achieved and exceeded. 37 was set as a new target and it represents all CMs in the city of Belgrade wider area. (A5.b) time taken to register a transaction Text Value more than 60 days (estimate, 54% in 5 days or less. The 5 days no baseline data available) remainder in less than ten days. Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments In 2005 Doing Business the 5 day target is achieved recorded that it took 186 days for those willing to pay for the to register property in Serbia. 'urgent procedure'. A1. Construct, equip and maintain Geodetic Number Value 0.00 33.00 27.00 Reference Framework. Date 31-Dec-2003 15-Dec-2011 29-Feb-2012 Comments Number represents number of Target achieved and stations. Reference stations exceeded. established and operational. Public Disclosure Copy A2. Digital Cadastre Mapping Number Value 0.00 1933318.00 96000.00 Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments 62,986 ha at 1:1000 scale Targets achieved and 8,218 ha at 1:500 scale exceeded. They were: 41,000 1,862,114 ha at 1:2500 scale. ha at 1:1000; 8,000 ha at 1:500 and 46,000 ha at 1:2500 A6. Supply of new software and necessary Number Value 0.00 66.00 52.00 equipment to 52 cadastre offices Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Page 4 of 6 The World Bank Report No: ISR5606 Comments Software was not developed, The contract for software but 66 offices have been development failed. RGA is to supplied with hardware and develop its software over the licenses. next two years with its own Public Disclosure Copy resources. A7. Provision of Legal Extension Services Number Value 0.00 63.00 30.00 Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments The unit is the number of The unit is the number of Target achieved and offices. offices. These are 63 local exceeded. Original intention offices that provide and was to provide legal aid regularly report the legal aid services external to RGA, but statistics to HQ. There are a strategy was developed and more local offices that are services are provided within providing legal aid, but they RGA's registration offices. don't report regularly. B1. Development and implementation of Text Value No plan Strategic plan and a business Corporate starategy and Strategic and Business Plan plan for 2011 completed. and business plan approved. adopted Date 31-Dec-2003 31-Dec-2011 29-Feb-2012 Comments 2012 business plan under Completed. development. Data on Financial Performance (as of 30-Jan-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P078311 IDA-39080 Effective 25-May-2004 09-Jun-2004 03-Nov-2004 29-Feb-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P078311 IDA-39080 Effective XDR 20.10 20.10 0.00 18.29 1.81 91.00 Public Disclosure Copy Disbursement Graph Page 5 of 6 The World Bank Report No: ISR5606 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 05-May-2010, Level two Approved on 24-May-2010, Level two Approved on 06-Aug-2010, Level two Approved on 11-Aug-2011, Level two Approved on 01- Feb-2012 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6