The World Bank Modernization of Real Property Registration and Cadastre (P151746) REPORT NO.: RES47001 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MODERNIZATION OF REAL PROPERTY REGISTRATION AND CADASTRE APPROVED ON MAY 24, 2016 TO THE REPUBLIC OF UZBEKISTAN URBAN, RESILIENCE AND LAND EUROPE AND CENTRAL ASIA Regional Vice President: Anna M. Bjerde Country Director: Tatiana A. Proskuryakova Regional Director: Steven N. Schonberger Practice Manager/Manager: Christoph Pusch Task Team Leader(s): Nadege Orlova The World Bank Modernization of Real Property Registration and Cadastre (P151746) ABBREVIATIONS AND ACRONYMS CA Cadastre Agency under the State Tax Committee of the Republic of Uzbekistan GKZGDK State Committee for Land Resources, Geodesy, Cartography and State Cadastre IISRPRC Integrated Information System for Real Property Registration and Cadastre IT Information Technology MRPRC Modernization of Real Property Registration and Cadastre (Project) NGIS National Geographic Information System OAT Operational Acceptance Test PDO Project Development Objective PIU Project Implementation Unit RF Results Framework UAT User Acceptance Tests The World Bank Modernization of Real Property Registration and Cadastre (P151746) BASIC DATA Product Information Project ID Financing Instrument P151746 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 24-May-2016 30-Sep-2021 Organizations Borrower Responsible Agency Cadastre Agency under the State Tax Committee of the The Republic of Uzbekistan Republic of Uzbekistan OPS_PROCESSING_DISCLOSABLE_TABLE Processing (this section will be automatically removed by the system before the paper is disclosed) Form Type Based on the proposed changes this Restructuring type is Full Restructuring Paper Level 2 Decision Authority CD Decision Project Development Objective (PDO) Original PDO The Project’s Development Objective is to establish an efficient and accessible real property registration and cadastre system in the Republic of Uzbekistan as part of the national eGovernment structure and services. The project will achieve this by: (i) improving business processes and customer orientation in the real property registry and cadastre; (ii) creating a fully digital real property registry and cadastre system (i.e. IISRPRC) accessible online to the The World Bank Modernization of Real Property Registration and Cadastre (P151746) public; (iii) improving the regulatory and operational environment of the real property registry and cadastre; (iv) facilitating spatial data access, exchange and sharing at national level; and (v) raising awareness on the importance of real property rights. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57610 24-May-2016 16-Sep-2016 12-Jan-2017 30-Sep-2021 20.00 9.51 10.49 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The IDA credit for Modernization of Real Property Registration and Cadastre Project (Project) in amount of US$ 20 million was approved on May 24, 2016 and became effective on January 12, 2017. The PDO is to establish an efficient and accessible real property registration and cadastre system in the Republic of Uzbekistan as part of the national eGovernment structure and services. The Project was supposed to achieve this by: (i) improving business processes and customer orientation in the real property registry and cadastre; (ii) creating a fully digital real property registry and cadastre system (i.e. IISRPRC) accessible online to the public; (iii) improving the regulatory and operational environment of the real property registry and cadastre; (iv) facilitating spatial data access, exchange and sharing at national level; and (v) raising awareness on the importance of real property rights. 2. Progress towards meeting the PDO and implementation progress are rated as moderately satisfactory. The Project implementation is moving forward, though is slower than planned, being impeded by consequences of initial delay with the launch of the Phase 1 of Integrated Information System for Real Property Registration and Cadastre (IISRPRC) activity, previous disruptions in the decision-making chain due to the Implementing Agency change, resulting stalled disbursements, and COVID-19 pandemic-related restrictions in Uzbekistan. Nevertheless, the Project achieved some remarkable results. In particular, to date, the Implementing Agency successfully completed a massive nationwide operation of digitization of all cadastral and registration documentation, which outpaced the initially set target by 2.5 times. The implementation of another main project activity, i.e. Phase 1 of design and development of IISRPRC under Component A “Real Property Registry and Cadastre System Development” is also progressing in an almost normal pace despite all the constraints, and is expected to be completed by July 31, 2021. The Contractor developed several new transactions and reports, conducted integration with external systems and trained programmers of the State Unitary Enterprise "Geoinfocom" within the framework of User Acceptance Tests (UAT). As a part of the UAT process the Contractor transferred data for Kashkadarya and Tashkent regions from previous IT System “Real Estate 3” into the IISRPRC format using ad hoc data migration tool. The Contractor shall complete Operational Acceptance Test (OAT), The World Bank Modernization of Real Property Registration and Cadastre (P151746) which marks the final stage of Phase 1 of the IISRPRC development, to open the way to start the Phase 2, which will include deployment of the IISRPRC in all 206 CA offices, supply of equipment and software and training of around 3,000 CA staff. All these activities are critical to ensure the fully functional IISRPRC and achievement of the PDOs. However, the implementation of IISRPRC Phase 2 is estimated to take seven months beyond the current Project closing date of September 30, 2021. 3. Aerial imagery acquisition works - another critical Project financed activity under component B “Real Property Registration and Cadastre Data Development” - have been completed for six regions, which corresponds to around 40 percent of the total contract area. Delays were triggered by February 2020 suspension of aerial survey flights due to the malfunction of the UltraCam-X aerial survey equipment. Procurement of new equipment to replace the outdated one was delayed by twelve months due to the Covid-19 pandemic-imposed restrictions. While the procurement of new equipment was completed in February 2021 and aerial survey works resumed, this season- and weather-dependent activity requires 10 more calendar months to be completed, i.e. good imagery acquisition (leafless) window in Uzbekistan is between October -April, and, thus, cannot be fully executed by the Project closing date of September 2021. 4. In addition to the current COVID-19 pandemic-imposed restrictions and despite the best efforts of the Project Implementation Unit (PIU), the Project implementation and disbursements in the past encountered several months of slowdown due to the initial delay with the launch of the Phase 1 of IISRPRC activity (now on track), and the change of the Implementing Agency. The change of the Implementing Agency resulted in: (i) disruptions of decision-making chain, (ii) delays obtaining necessary approvals; and (iii) delays with launching and completion of procurement processes. The State Committee for Land Resources, Geodesy, Cartography and State Cadastre (GKZGDK) which acted as the Project Implementing Agency, was transformed to become the Cadastre Agency (CA) under the State Tax Committee of the Republic of Uzbekistan by Presidential Decree dated September 7, 2020. The Director of CA was appointed on January 15, 2021, the CA sent the request to the Ministry of Finance for Project restructuring in February 2021 and the Bank received requests for restructuring on April 1 and May 18, 2021. B. Rationale for Restructuring 5. In response to the Recipient’s request of May 17, 2021, this restructuring paper seeks for 12 months extension of the Project closing date from September 30, 2021 to September 30, 2022, to allow the Project to successfully overcome remaining technical, administrative and COVID-19-related constraints and fully achieve its development objectives. In response to the Recipient’s letters of April 1, 2021 and June 18, 2021, t he proposed restructuring also reflects the change of the Project Implementing Agency, adjusts the Project Results Framework (RF), and revises the disbursement estimates to put them in line with the extended Project implementation period. 6. Given the implementation delays caused by the COVID-19 pandemic and the administrative reform, the above changes to the Project are critical for successful completion of the key Project supported activities and satisfactory achievement of the PDO. 7. The extension of the Project’s Closing Date will allow to complete satisfactorily remaining critical Project activities such as deployment and operationalization of the IISRPRC in all 206 offices of the CA, migration of the cadastral and registration data, training of the CA personnel and public awareness campaigns. According to the implementation timeline, proposed by the PIU, the contract for Phase 2 would be signed in August 2021 with works starting in the same month. The works are estimated to be completed in April 2022, subject to the Extension of the credit closing date being granted. The World Bank Modernization of Real Property Registration and Cadastre (P151746) 8. While Project disbursements currently stand at 49 percent, the commitments are currently at 67.2 percent and will be at 80 percent as soon as the ongoing negotiations for Phase 2 of IISRPRC are completed. The PIU is fully mobilized and committed to ensuring satisfactory completion of the Project and has prepared an implementation plan with a timeline for delivering the key activities, should the Project closing date be extended. A number of large invoices are currently pending payment, and the World Bank’s (Bank) review and acceptance of the new Implementing Agency and authorized specimen signatures will enable good disbursement progress based on these payments. As reported by the PIU, US$1.5 million could be disbursed as soon as the restructuring process is completed. 9. The proposed changes to the RF will allow to: (i)clarify the data collection methodology for a number of indicators, (ii)update the responsibility of the Implementing Agency for data collection, (iii)drop some indicators that no longer contribute to measuring progress towards the PDO achievement, and (iv) add new indicators to reinforce Project progress monitoring. 10. The restructuring will not change the PDO and associated outcomes. The Project is compliant with all the legal covenants. The Project’s PDO remains relevant and will be achieved if the Project’s Closing Date is extended. 11. Fiduciary arrangements continue to be satisfactory. Both Procurement and Financial Management are rated as “Moderately Satisfactory”, and there are no outstanding audits. Management of Environmental and Social Safeguards is rated as “Satisfactory”, and no safeguards related issues have been reported. The Project’s environmental category does not change as well and remains Category B. 12. There is no change in the composition of the Project components and their names. The Project will continue to follow the existing Project Operational Manual. II. DESCRIPTION OF PROPOSED CHANGES A. Change in Implementing Agency 13. In line with the Presidential Decree #6061 “On Measures for Cardinal Improvement of the Land and State Cadastre Registration System” and the resolution of the Cabinet of Ministers #66, the newly established CA under the State Tax Committee of the Republic of Uzbekistan becomes a legal successor of the GKZGDK (the current Implementing Agency). According to the above referenced resolution, the CA is tasked, inter alia, to implement the Bank-financed project “Modernization of Real Property Registration and Cadastre”. A formal request for support with int roducing the Implementation Agency change was received by the Bank from the Ministry of Finance of Uzbekistan on April 1, 2021 (ref. 01/32-01-35-/137). Authorized specimen signatures were also received. Given that the same PIU staff will continue implementing the Project, the Bank’s Procurement and Financial Management specialists have not identified any major additional risks that may hinder project implementation and have confirmed that the PIU capacity is acceptable for the Project implementation. The Project’s Financing Agreement provides for the GKZGDK or it’s any legal successor to carry out the Project. Thus, the change does not require amendments to the Financing Agreement. B. Project Closing Date Extension 14. In response to the formal request 07/32-01-35-/985 of May 17, 2021 from the Ministry of Finance of Uzbekistan, the Project’s closing date will be extended by 12 months – from September 30, 2021 until September 30, 2022. This extension will allow to complete the ongoing critical activities under the Project in a satisfactory manner and ensure successful achievement of the PDO. That will be the first extension of the Project closing date. The World Bank Modernization of Real Property Registration and Cadastre (P151746) C. Disbursement Estimates and Implementation Schedule Revision 15. The disbursement estimates and implementation schedule are revised to reflect the extended Project Closing Date. D. Results Framework Revision 16. The proposed RF revisions follow the propositions of the CA letter 03-22-1454-son received by the Bank on June 18, 2021. The Bank conducted a series of technical discussions with the PIU to review the proposed changes, including the proposed new Intermediate Results Indicators and the dropped ones, as described below. 17. For all indicators: (i) the end-target date will be revised to reflect the proposed new closing date of the Project, and (ii) the responsibility for data collection of the new Implementing Agency (Cadastre Agency under the State Tax Committee of the Republic of Uzbekistan) will be reflected. The methodology for data collection will be updated for a number of PDO and IRI indicators, as described in the enclosed Results Framework table, to: (i) clarify some technical parameters, (ii) make measurements more precise and indicators’ definitions more clear, (iii) align the metrics for indicators and their sub-indicators, and (iv) clarify the scope of a number of indicators. 18. The target value for PDO indicator “Direct beneficiaries” will be adjusted to 2.4 million people to reflect to reflect the realistic number of holders and co-holders of real property rights transferred automatically into IISRPRC during the data migration process. The revised end target value is set to achieve the data migration rate of at least 30 percent out of 7.9 million current records of real property objects. All other PDO indicators’ target values except one will remain unchanged. 19. Three Intermediate Results Indicators (IRI) linked to activities under the Component B will be dropped as not relevant for monitoring progress towards the PDO achievement and not attributable to the Project. In particular, the indicators “Real property objects with attribute data recorded and accessible in digital form” and “Real property rights registered and accessible in digital form” refer to the data digitized in the old IT System prior to beginning of the Project activities, hence their progress cannot be attributed to the Project. The indicator “ Target land area with use or ownership real property rights recorded” is proposed for dropping as no property rights recording activities are financed by the Project. Also the IRI indicator “Annual business plan adopted by GKZGDK” under Component D” Institutional Development and Project Management” will be dropped, since the new Implementing Agency does not prepare annual business plans according to its organization and statutes. 20. A new IRI “IISRPRC operational in CA offices” will be introduced to help measure whether the IISRPRC has been developed, tested, and made operational in all the CA offices. This is critical for tracking progress towards the achievement of the PDO of establishement of an efficient and accessible real property registration and cadastre system in Uzbekistan. 21. In addition, the end-target values of three IRIs will be adjusted to better align with the Project financed activities and ensure more accurate Project attribution. Namely, the end target value for the IRI “Attribute real property and cadastre records uploaded into the IISRPRC” will decrease to include only automatically migrated into IISRPRC data. The Project does not include financing for data harmonization activities, and the indicator measures the percentage of scanned cadastral records loaded into the newly developed IISRPRC. The end target value for the IRI “Digital Cadastre Index Map coverage of the inhabited territory of Uzbekistan” will increase to align with scope of activities implemented The World Bank Modernization of Real Property Registration and Cadastre (P151746) under the Project. The end target for the IRI “Real property register and cadastre female personnel trained” will increase to reflect the current number of female technical specialists employed by the CA. 22. Finally, the Cross-Cutting Theme Tagging will be added to a number of indicators (gender, citizen engagement). III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank Modernization of Real Property Registration and Cadastre (P151746) IV. DETAILED CHANGE(S) OPS_DE TAILE DCHA NGES_ IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action State Committee for Land Resources, Marked for Deletion Implementing Geodesy, Cartography and State Cadastre, Agency Gosgomzemgeodescadastre Cadastre Agency under the State Tax Implementing No Change Committee of the Republic of Uzbekistan Agency OPS_DE TAILE DCHA NGES_ LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-57610 Effective 30-Sep-2021 30-Sep-2022 30-Jan-2023 OPS_DE TAILE DCHA NGES_ DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2016 0.00 0.00 2017 30,000.00 30,000.00 2018 1,024,015.36 1,024,015.00 2019 0.00 0.00 2020 8,453,156.22 8,453,156.00 2021 8,030,000.00 0.00 2022 2,462,828.42 7,429,829.00 2023 0.00 3,000,000.00 . The World Bank Modernization of Real Property Registration and Cadastre (P151746) . Results framework COUNTRY: Uzbekistan Modernization of Real Property Registration and Cadastre Project Development Objectives(s) The Project’s Development Objective is to establish an efficient and accessible real property registration and cadastre system in the Republic of Uzbekistan as part of the national eGovernment structure and services. The project will achieve this by: (i) improving business processes and customer orientation in the real property registry and cadastre; (ii) creating a fully digital real property registry and cadastre system (i.e. IISRPRC) accessible online to the public; (iii) improving the regulatory and operational environment of the real property registry and cadastre; (iv) facilitating spatial data access, exchange and sharing at national level; and (v) raising awareness on the importance of real property rights. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 to establish an efficient real property registration and cadastre system Procedures needed to register rights to a real 9.00 9.00 9.00 9.00 5.00 5.00 6.00 property. (Number) Action: This indicator has been Revised The IISRPRC is integrated No No No No No No Yes with the NGIS (Yes/No) Action: This indicator has been Revised to establish an accessible real property registration and cadastre system Direct Project beneficiaries 0.00 717,641.00 717,641.00 717,641.00 717,641.00 0.00 2,400,000.00 (Number) The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: Action: This indicator has End target is revised in line with the adjusted methodology for indicator measurement (to reflect a more precisely measured number of gender-disaggregated been Revised Project beneficiaries). Female direct Project beneficiaries 0.00 20.00 20.00 20.00 20.00 0.00 20.00 (Percentage) Action: This indicator has been Revised Public access to integrated real property registration No No No No No No Yes services online. (Yes/No) Action: This indicator has been Revised Users' satisfaction of the quality of real property registration services (women) Users’ satisfaction of the quality of real property 0.00 0.00 0.00 81.50 81.50 81.50 88.50 registration services. (Percentage) Action: This indicator has been Revised Female users' satisfaction of the quality of real property 0.00 80.70 81.70 80.70 82.70 registration services (Percentage) The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 A. Real Property Registry and Cadastre System Development Real property registration and cadastre business No No No Yes Yes Yes Yes processes re-engineered for digital operations. (Yes/No) Action: This indicator has been Revised IISRPRC operational in pilot No No No No No No Yes offices (Yes/No) Action: This indicator has been Revised Data Center operational and fully equipped to host No No No No No Yes Yes IISRPRC (Yes/No) Action: This indicator has been Revised IISRPRC operational in CA 1.00 29.00 80.00 100.00 offices (Percentage) The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator is New B. Real Property Registration and Cadastre Data Development Real property objects with attribute data recorded and 7.50 7.50 10.00 60.50 60.50 60.50 accessible in digital form. (Percentage) Rationale: Action: This indicator has Dropped as no longer relevant for monitoring achievement of PDO. Corresponded to the data digitized prior to the Project in the old IT System. These results been Marked for Deletion are not attributable to the Project. Real property rights registered and accessible in 7.10 7.10 7.10 38.10 38.10 40.00 digital form. (Percentage) Rationale: Action: This indicator has Dropped as no longer relevant for monitoring achievement of PDO. Corresponded to the data digitized prior to the Project in the old IT System. These results are been Marked for Deletion not attributable to the Project. Target land area with use or ownership real property 10,000.00 20,000.00 60,000.00 100,000.00 140,000.00 180,000.00 rights recorded. (Hectare(Ha)) Action: This indicator has Rationale: been Marked for Deletion Dropped as no longer relevant for monitoring achievement of PDO. No property rights recording activities are financed by the project. Scanned cadastral files of real property objects 0.00 0.00 0.00 0.00 0.00 7,362,940.00 3,000,000.00 (Number) The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised Attribute real property and cadastre records uploaded 0.00 0.00 0.00 0.00 4.00 4.00 30.00 into the IISRPRC. (Percentage) Rationale: End target is revised since only automatically migrated data into IISRPRC will be accounted for as the project does not include financing for data harmonization Action: This indicator has activities. been Revised Digital Cadastre Index Map coverage of the inhabited 0.00 0.00 0.00 0.00 25.00 90.00 90.00 territory of Uzbekistan. (Percentage) Rationale: Action: This indicator has End target value revised for alignment with scope of activities implemented under the project. been Revised C. Use of Real Property Registry and Cadastre Data The NSDI strategy adopted by the government. No No No No No No Yes (Yes/No) Action: This indicator has been Revised Registration and information services fees No No No No Yes Yes Yes introduced. (Yes/No) The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised New open coordinate reference system No No No No No Yes Yes established (Yes/No) Action: This indicator has been Revised D. Institutional Development and Project Management Real property registration Public Awareness No No No No No No Yes Campaigns completed (Yes/No) Action: This indicator has been Revised Online operations manual for real property No No No Yes Yes Yes Yes registration and cadastre established (Yes/No) Action: This indicator has been Revised Code of Conduct, Ethics and Service Standards published for real property No No No No Yes Yes Yes registration and cadastre operations. (Yes/No) Action: This indicator has been Revised The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Annual business plan adopted by GKZGDK No No No No Yes Yes (Yes/No) Action: This indicator has Rationale: been Marked for Deletion The new implementing agency does not prepare annual business plans according to its organization and statutes. Laws and regulations proposals for digital real property and cadastre 0.00 0.00 0.00 0.00 1.00 1.00 2.00 registration submitted for approval (Number) Action: This indicator has been Revised Real property register and cadastre personnel trained 0.00 0.00 0.00 0.00 200.00 200.00 3,000.00 (Number) Action: This indicator has been Revised Real property register and cadastre female 0.00 0.00 0.00 0.00 650.00 1,200.00 1,330.00 personnel trained (Number) Rationale: Action: This indicator Target values aligned with an effective current number of women-technical specialists employed by the CA. has been Revised Project's monitoring and No No Yes Yes Yes Yes Yes evaluation system and The World Bank Modernization of Real Property Registration and Cadastre (P151746) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 quarterly reporting operational. (Yes/No) Action: This indicator has been Revised IO Table SPACE The World Bank Modernization of Real Property Registration and Cadastre (P151746)