Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004792 IMPLEMENTATION COMPLETION AND RESULTS REPORT (CREDIT NUMBER 5188-BA) ON A CREDIT IN THE AMOUNT OF SDR22.7 MILLION (US$ 34.1 MILLION EQUIVALENT) TO BOSNIA AND HERZEGOVINA FOR A REAL ESTATE REGISTRATION PROJECT ( P128950 ) October 3, 2019 Social, Urban, Rural And Resilience Global Practice Europe And Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective March 8, 2019) Currency Unit = US$ SDR 0.72 = US$ 1 US$ 1.39 = SDR 1 FISCAL YEAR July 1 - June 30 Regional Vice President: Cyril E Muller Country Director: Linda Van Gelder Country Manager: Emanuel Salinas Munoz Regional Director: Steven N. Schonberger Practice Manager: Jorge A. Munoz Task Team Leader: Camille Bourguignon-Roger ICR Main Contributor: Anthony Lamb ABBREVIATIONS AND ACRONYMS AF Additional Financing BiH Bosnia and Herzegovina BAM BiH Convertible Mark CBA Cost Benefit Analysis CM Cadastral Municipality CILAP Capacity Building for Improvement of Land Administration and Procedures CPF Country Partnership Framework ECA Europe and Central Asia ERR Economic Rate of Return ETRS European Terrestrial Reference System FAO Food and Agriculture Organization of the United Nations FBH Federation of Bosnia and Herzegovina FBH GA FBH Geodetic Authority GNSS Global Navigation Satellite System ICR Implementation Completion and Results Report IE Impact Evaluation ISR Implementation Status and Results Report M&E Monitoring and Evaluation MoJ Ministry of Justice MTR Mid-Term Review NPV Net Present Value OP Operations Policy PAD Project Appraisal Document PCB Project Coordination Board PIU Project Implementation Unit REC Real Estate Cadastre RERP Real Estate Registration Project RS GA RS Geodetic Authority RS Republika Srpska SDR Special Drawing Rights SIDA Swedish International Development Cooperation Agency TABLE OF CONTENTS DATA SHEET ................................................................................................................................1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ...........................................................6 A. CONTEXT AT APPRAISAL .............................................................................................................. 6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ........................................... 9 II. OUTCOME ..........................................................................................................................10 A. RELEVANCE OF PDOs ................................................................................................................. 10 B. ACHIEVEMENT OF PDOs (EFFICACY) ........................................................................................... 11 C. EFFICIENCY ................................................................................................................................ 13 D. JUSTIFICATION OF OVERALL OUTCOME RATING ........................................................................ 14 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ................................................................................ 14 A. KEY FACTORS DURING PREPARATION........................................................................................ 15 B. KEY FACTORS DURING IMPLEMENTATION ................................................................................. 16 A. QUALITY OF MONITORING AND EVALUATION (M&E) ................................................................ 17 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ........................................................ 18 C. BANK PERFORMANCE ................................................................................................................ 18 D. RISK TO DEVELOPMENT OUTCOME ........................................................................................... 19 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ...............................................................21 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ............................42 ANNEX 3. PROJECT COST BY COMPONENT ................................................................................44 ANNEX 4. EFFICIENCY ANALYSIS ................................................................................................45 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ......52 ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) ..........................................................................68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P128950 REAL ESTATE REGISTRATION PROJECT Country Financing Instrument Bosnia and Herzegovina Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing 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. PDO as stated in the legal agreement 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 Republika Srpska. Page 1 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 34,100,000 34,100,000 30,209,892 IDA-51880 Total 34,100,000 34,100,000 30,209,892 Non-World Bank Financing 0 0 0 Borrower/Recipient 0 0 0 Total 0 0 0 Total Project Cost 34,100,000 34,100,000 30,209,892 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 25-Oct-2012 23-Sep-2013 06-Jun-2016 31-Jul-2018 31-Jan-2020 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 02-Jan-2016 11.66 Reallocation between Disbursement Categories Change in Legal Covenants 06-Oct-2017 22.52 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest Page 2 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 28-Jan-2013 Satisfactory Satisfactory 0 02 30-Jul-2013 Satisfactory Moderately Satisfactory 0 03 22-Jan-2014 Satisfactory Satisfactory 5.35 04 21-Jun-2014 Satisfactory Moderately Satisfactory 5.41 05 22-Dec-2014 Satisfactory Satisfactory 6.90 06 17-Jun-2015 Satisfactory Satisfactory 8.28 07 07-Jan-2016 Satisfactory Satisfactory 11.66 08 28-Jun-2016 Moderately Satisfactory Moderately Satisfactory 15.48 09 20-Dec-2016 Moderately Satisfactory Moderately Satisfactory 17.68 10 19-Jun-2017 Moderately Satisfactory Moderately Satisfactory 20.25 11 07-Mar-2018 Satisfactory Satisfactory 23.51 12 06-Dec-2018 Satisfactory Satisfactory 26.94 13 28-Jun-2019 Satisfactory Satisfactory 29.38 SECTORS AND THEMES Sectors Major Sector/Sector (%) Public Administration 20 Law and Justice 20 Page 3 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Information and Communications Technologies 65 Public Administration - Information and 53 Communications Technologies ICT Services 8 Other Information and Communications 4 Technologies Social Protection 15 Public Administration - Social Protection 15 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Public Sector Management 51 Rule of Law 41 Personal and Property Rights 41 Public Administration 10 E-Government, incl. e-services 10 Social Development and Protection 7 Social Inclusion 7 Indigenous People and Ethnic Minorities 1 Other Excluded Groups 1 Participation and Civic Engagement 5 Urban and Rural Development 41 Rural Development 41 Land Administration and Management 41 ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Cyril E Muller Page 4 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Country Director: Jane Armitage Linda Van Gelder Director: Laszlo Lovei Steven N. Schonberger Practice Manager: Kulsum Ahmed Jorge A. Munoz Task Team Leader(s): Mika-Petteri Torhonen Camille Bourguignon-Roger ICR Contributing Author: Camille Bourguignon-Roger Page 5 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) This is an interim Implementation and Completion Results (ICR) report for the Real Estate Registration Project (RERP or Project) covering the period from Board approval on October 25, 2012 to December 31, 2018. The interim ICR covers all but the final 13 months of the Project up to the closing date of January 31, 2020. The report was prepared in response to a request from the Governments in Bosnia and Herzegovina (BiH) for Additional Financing (AF). As the AF period is expected to take the project timeline over ten years, it is a requirement that an interim ICR report be prepared. I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. At the RERP appraisal in 2012, almost 20 years had passed since the Dayton Peace Accords brought an end to armed conflict and established BiH’s complex administrative system, which consists of two entities (the Federation of Bosnia and Herzegovina [FBH] and the Republika Srpska [RS]), and one autonomous district (Brcko District). Much progress had been made in rebuilding the country and its infrastructure, and institutions were in place to govern the country. The economic situation was improving and BiH became a potential candidate country for the European Union membership. However, BiH was facing challenges, such as residual ethnic tension, a bloated civil service, an unemployment rate at 27 per cent, a restrictive environment for private sector growth, low workforce participation, and a poverty rate that had remained at 15 per cent since the global financial crisis in 2008. 2. Land administration had a solid basis in the Yugoslav period, but the war years and population displacement had undermined the quality and coverage of the information and services. The World Bank financed Land Registration Project (LRP) was implemented between 2007 and 2012 to support the upgrading of the basic elements of BiH’s land administration system. The LRP was “to be the first phase in delivering a longer-term vision for the establishment by 2016 of a well-functioning land administration system which facilitates investment and good governance.”1 3. By the time the RERP was appraised, there had been good progress in renovating offices, reducing backlogs, testing pilots for real property registration, establishing the basics of Information Technology (IT) systems, developing the legal framework and instilling a customer service mentality in staff of the implementing agencies.2 According to the Doing Business reports, during the period 2008-2012, BiH had reduced the time taken to register a transaction from 331 days to 33 days and also increased its overall ranking for property registration from 144 to 100.3 However, despite the solid work on preparing for a modern land administration system under the LRP and with the support of donors, there was still much to do. The quality and coverage of the real property data were restricted, the IT systems were only partly developed, and the policy and legal frameworks required attention. This had been expected when the LRP was designed, with the plan always being to have a second phase project if the LRP had proven successful. 4. From an implementation viewpoint, responsibility for the activities of the RERP was to be divided between the two BiH entities. In the FBH, responsibility was split between the FBH Ministry of Justice (FBH MoJ), which oversees the land registry offices of the municipal courts, and the Federal Geodetic Authority (FBH GA), which oversees the municipal cadastral departments for geodetic and real property affairs. In the RS, a unified system had recently been put in place, with only one agency, the RS Geodetic Authority (RS GA) responsible for legal and surveying aspects of registration.4 1 Project Appraisal Document (PAD) of the LRP. 2 In the FBH, these were the FBH MoJ and the land registries attached to the municipal courts, plus the FBH GA and the municipality cadastral offices. In the RS, the relevant agencies were the RS MoJ and the RS GA. 3 Since then, the time to register has been further reduced to 24 days (per 2019 Doing Business report) 4 The single agency model was introduced by the Law on Survey and Cadastre of the Republika Srpska in 2011 and it eliminated the document registration role of the RS Ministry of Justice (which had been a partner in the LRP). Page 6 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Project Development Objectives (PDOs) 5. The PDO is to support development of a sustainable real estate registration system with harmonized land register and cadastre records in urban areas of both the FBH and RS. Key Expected Outcomes and Outcome Indicators 6. The PDO comprises two key elements: 1) a sustainable registration system, and 2) harmonized records in urban areas. Per the PAD, the sustainability of the registration system “is measured by the degree an institution generates revenue to match its costs, charges affordable fees, delivers quality services without discrimination and within a reasonable time covers.” As for the harmonized records, it refers to the harmonization of cadastre and land registry records. In the RS, where the cadastre and land registry are managed by the RS GA, the information contained in the cadastre and land register are harmonized, and a single record called Real Estate Cadastre (REC) is created. In the FBH, where the management of the cadastre and land registry is split between the municipal cadastre departments and land registry offices in municipal courts, the FBH GA coordinates the harmonization of the information contained in the cadastre and land register. At the end of the process, these records continue to be managed separately. In both entities, these activities are conducted systematically by Cadastral Municipalities (CMs).5 7. Per the PAD, the PDO outcome indicators are as follows: − Coverage: Number of CMs with land register and cadastre data harmonized in FBH and REC established in the RS. − Sustainability: Ratio of real estate registration revenues over costs.6 − Governance: Percentage of CMs with harmonized land register and cadastre/REC data publicly accessible online and percentage of users who consider real estate registration services reliable. − Other (core): Number of direct project beneficiaries (number of joint and individual land owners), of which a certain percentage are female, of harmonization records/REC establishment. 8. The main beneficiaries of the Project were to be: − The public, who can own, lease, mortgage and use real estate under the protection of legally registered rights. − The business community, which can rely on the secure access to real estate and improved access to credit. − Government institutions and municipalities, which can make use of online access to accurate real property data. − Land administration institutions, which will gain from more sustainable operations and staff policies. 9. Society overall was to benefit from improved land governance supported by up-to-date and accessible information on real estate and legal rights, which increased accountability and informed decision-making concerning land, real estate and natural resources. 5 A cadastral municipality is an administrative unit for land administration used in the countries that emerged from the former Yugoslavia. It is much smaller in area than a political municipality and may contain as few as 2,000 properties. As of March 2019, there are 3,482 cadastral municipalities in BiH (RS: 1,613; FBH: 1,869) 6 Per the PAD, “Sustainability is measured by the degree an institution generates revenue to match its costs, charges affordable fees, delivers quality services without discrimination and within a reasonable time.” Page 7 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Theory of Change Components 10. A separate set of components was created for each entity. However, given that the FBH and the RS have much in common regarding land administration, the two sets of components had the same names and were largely the same in substance. Per the Financing Agreement, the components were as follows: FBH − Component A: Real Estate Registration Data Development: land register and cadastre data harmonization on land, buildings and rights based on the actual situation in the field, including vulnerability mapping, social monitoring and public awareness campaigns to support registration of real estate rights and vectorization of cadastral maps. − Component B: Real Estate Registration Infrastructure Development: improved working conditions and infrastructure in cadastre and land registration offices through office renovations, information and communication technology system development and provision of furniture and equipment. − Component C: Policy and Institutional Development and Project Management: policy and institutional development in the sustainability and governance of real estate registers and project management and Page 8 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) monitoring support through the provision of technical assistance, training, incremental operating costs and equipment. RS − Component A: Real Estate Registration Data Development: real estate cadastre data harmonization on land, buildings and rights based on the actual situation in the field, including coordinate reference system development, vulnerability mapping, social monitoring and public awareness campaigns. − Component B: Real Estate Registration Infrastructure Development: improved working conditions and infrastructure in cadastre and land registration offices through office renovations and purchases, information and communication technology system development, creation of digital archives, and provision of furniture and equipment. − Component C: Policy and Institutional Development and Project Management: policy and institutional development in the sustainability and governance of real estate registers and project management and monitoring support through the provision of technical assistance, training, incremental operating costs and equipment. The PAD specified EUR 14 million for Component A, EUR 8.5 million for Component B and EUR 3.6 million for Component C. At time of writing, actual expenditure was running at: Component A: EUR 15.4 million, Component B: EUR 7.9 million, and Component C: EUR 2.8 million (see Annex 3). B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Revised PDOs and Outcome Targets 11. The PDO was not changed but the targets of some PDO indicators were revised. . Revised PDO Indicators 12. The PDO indicators were revised in October 2017: 1) the target number of CMs with harmonized land register and cadastre data/REC established was reduced from 524 to 468 to reflect the actual cost and pace of these activities, 2) the target number of beneficiaries was correspondingly reduced from 1.68 million to 1.48 million, 3) User perception of the quality of real estate registration services was downgraded from PDO to intermediate results indicator to reflect the fact that user perception is subjective and influenced by many factors that are not related to the PDO. The end target of this indicator was also was lowered from 90 to 80 per cent as the original target was out of step with the target in similar Bank projects elsewhere, and 4) the ratio of real estate registration revenues over costs indicator was dropped because it could not be measured as budgets were not structured in such a way that costs could be separately identified Revised Components 13. The components were not revised, although there was a reallocation of funds between disbursement categories to focus on the priority activity of harmonization of data/REC creation. Other Changes 14. There were long gaps between Board approval on October 25, 2012, the signing of the Financing Agreement on January 25, 2013, and effectiveness on September 23, 2013. Effectiveness delays are common for projects in BiH due to Page 9 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) the complex governance structure and complex ratification procedures in both entities and at the state level. The 11- month delay was about average by BiH standards, and could have been better factored in during preparation.7 15. The impact of this delayed effectiveness was not insignificant. Preparatory activities were curtailed, momentum was lost, and contracts for certain staff of the Project Implementation Units (PIUs) could not be renewed, resulting in a loss of institutional and technical knowledge. The implementing agencies were able to utilize their own staff to commence certain activities and donors provided some support, so not all momentum was lost. Although there was the possibility of retroactive financing in the Financial Agreement, it was not implemented given the possible risks to the agencies if the Project had not been ratified by both entities. 16. The Financing Agreement was amended in January 2016 to extend the covenant regarding the development of long- term strategies and business plans for the sustainable management of real estate registration services in RS and FBH. Additional time was provided, and this covenant has been met. 17. In in October 2017, the Project closing date was extended from July 31, 2018 to January 31, 2020. This was required to address the delay in effectiveness and provide sufficient time to complete data harmonization and REC establishment. The work required for these key activities turned out to be more time consuming and labor-intensive. It also requires good quality control by experts, such as FBH GA and RS GA staff, but who are limited in number in BiH.8 Concurrently, the Project Results Framework was amended. One PDO indicator was downgraded to an intermediate results indicator, and the targets of three PDO indicators were revised. Several intermediate results indicators were also adjusted to address methodological and data availability issues. The target for cadastral maps in digital form in the RS was reduced from 93 to 80 per cent of the territory and the number of customer satisfaction surveys was dropped from six to four. Rationale for Changes and Their Implication on the Original Theory of Change 18. The rationale for many of the changes was that the work, resources required to be coordinated and supervised, and overall cost involved in data harmonization/REC creation had been under-estimated at project design. The methodology for harmonization had been developed during the LRP but it had not been fully tested, so once work began, issues began to arise. The re-allocation of funds to harmonization also reflected the view that reliable data was a priority for making the system sustainable. Other rationales have been noted immediately above. None of the changes can be said to have had any impact on the theory of change, but the reduction of harmonized CMs from 524 to 468 could be said to have reduced the reach of some of the Project’s benefits by approximately 10 per cent. II. OUTCOME A. RELEVANCE OF PDOs 19. A rating for the PDO of highly relevant is appropriate for the following reasons. 20. Although the Project predates the current Country Partnership Framework (CPF)9, it supports the CPF’s focus area (1) increasing public sector efficiency and effectiveness by financing the inputs the registration agencies need to operate well. The Project also supports the adoption of e-services, better operating procedures, legal reform and improved office environments, which facilitate both their efficiency and effectiveness in delivering services. 7 The LRP was similarly delayed by just under one year. As noted in the Performance and Learning Review of the Country Partnership Framework of September 2018, there is an average of 10.7 months between Board approval and effectiveness in BiH. 8 Some 827 consultants have been engaged in the RS on REC creation work over the Project so far. In the FBH, too, sizeable numbers of consultants were employed, such as the 155 temporary clerks who worked in 24 municipal court land registry offices. 9 The current CPF was adopted in 2015 for the period going from Fiscal Year 2016 to 2020. Page 10 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 21. The Project is relevant to the CPF’s focus area (2) creating conditions for accelerated private sector growth as clear and secure property data supports trading of property and thus property being put to its highest and best use. It enables banks to accept real estate as security for mortgages, and thus permits access to lower cost loans for owners who can use the funds for investment purposes. Further, improved access to real estate records reduces transaction costs. 22. The Project is aligned with the CPF’s focus area (3) building resilience to natural shocks as it supports the creation of a more complete and secure record of real properties. If a natural or a human induced disaster was to occur, which had the effect of displacing people or destroying infrastructure and buildings, then it would be less problematic to re-establish both boundaries and rights. 23. Lastly, the PDO is consistent with the BiH Land Administration Sector Policy and Strategy adopted in 2011. B. ACHIEVEMENT OF PDOs (EFFICACY) 24. The first element to consider when rating the Project’s Overall Efficacy is whether it was successful in harmonizing land register and cadastre records in urban areas of both the FBH and RS. At December 31, 2018, the implementing agencies had harmonized land register and cadastre data/ established REC in 427 CMs benefiting 1.33 million beneficiaries of which 35.1 per cent are women. With an additional year of the Project left, the end-targets of 468 CMs and 1.68 million direct project beneficiaries of which 35 per cent are women should be exceeded.10 As for the objective to ensure that these data are publicly available for all CMs, it has been achieved. 25. The second element to consider when rating the Project’s Overall Efficacy is to what extent it supported the development of a sustainable real estate registration system. Per the PAD, “sustainability is measured by the degree an institution generates revenue to match its costs, charges affordable fees, delivers quality services without discrimination and within a reasonable time.” Given that the PDO indicator originally introduced to monitor financial sustainability was dropped in 201711, we assess the extent to which the Project has supported the development of the six most important elements of a land administration system:12 Element 1. Reliable, trustworthy and accessible real estate information preferably kept in digital form 26. Relevant PDO indicators are number of CMs with harmonized land register and cadastre data/established REC and percentage of CMs with land register and cadastre/ REC data publicly accessible online. As discussed above, the Project supported data harmonization/ REC established in 468 CMs and data are available online. Other relevant indicators are: − Map vectorization (A.3) with an original target of 93 per cent (RS) and 40 per cent (FBH), which was reduced to 80 per cent for the RS in 2017. The FBH end target has been exceeded (62.6 per cent). The RS has achieved 70 per cent and is unlikely to reach 80 percent. − Digital archive (B.3) with a target of digital archive operational in 20 offices. The target was exceeded with such archives operational in 89 offices. Support from Sweden and Norway greatly facilitated this activity. − Sustainable IT Unit with competent staff operational in GA/FBH MoJ (B.2). The target was to establish sustainable IT structures with competent staff in the impmenenting agencies and FBH MoJ. This target has been achieved.13 10 By the time this interim ICR was finalized in September 2019, the end targets of the PDO-level indicators had been met or exceeded. The harmonization of land register and cadastre data/ establishment of REC had been completed in 511 CMs, beneficiating 1.61 million individuals, of which 35.8 per cent are women. The PDO-level objective to ensure that these data are publicly available had also been achieved 11 This indicator was dropped because the implementing agencies could not obtain the data required to monitor it. 12 External features of a sustainable system include adequate political support and stable macro-economic, political and social environments, etc. These will not be discussed as being beyond the scope of this ICR report. 13 The sustainable IT structure indicator has not been achieved in the way envisaged at appraisal (that is, a unit within the FBH MoJ) but rather by Page 11 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) − E-services types provided for key stakeholders (B.2), which had a target of ten such services. Nine types of e-services are provided and the end target is likely to be met in 2019. − Number of delivered e-services per year (B.2), with a target of 30,000 and an achievement of 4.3 million. This exceedingly high figure is perhaps explained by the fact that the service is free and thus people are able to routinely check on the status of their property.14 − System technically enabled with Personal ID, Company ID, Address Registries (B.2), with a target of being enabled by the end of the Project and which has been achieved in the FBH and is being tested in the RS. − IT System capable to maintain harmonized data (B.2), which has been achieved. Element 2. User awareness, acceptance and satisfaction 27. Public awareness and acceptance of the real property registration system is essential if it is to function. Therefore, raising awareness and measuring satisfaction are critically important. 28. For public awareness the first relevant indicator is public awareness campaigns completed (C.2.2), with a target of four. Two campaigns have been completed in the FBH while and the second campaign is ongoing in the RS. Thus, it can be expected that the target will be met. 29. The other relevant indicator is public awareness campaigns completed in target areas (A.1), which had a target of 489 CMs that was reduced to 468 CMs in the 2017 restructure to correspond with the reduced target of number of CMs with established REC. At December 31, 2018, campaigns had been completed in 408 CMs. The implementing agencies estimate that they will meet the end-target as the campaigns precedes harmonization/REC creation work and thus should be completed prior to initiating these activities. 30. Regarding customer satisfaction, results from the 2015-2016 customer surveys show a level of satisfaction of 78 per cent, which means that this indicator is two percentage points shy of being achieved. This figure shows that the entities successfully maintain a high level of satisfaction with the quality of real estate registration services. The final value of this indicator will be assessed by the second set of surveys that are planned for 2019. Satisfaction should be further assessed under the AF, thus providing three points of comparison across the RERP. Element 3. Supportive policy and legal framework, practices and procedures 31. The policy and legal framework is the cornerstone of a real property registration system and substantial set of laws was developed during the LRP. The RS adopted a new law on Survey and Cadastre just before Project preparation and development of implementing rules was needed. Thus, there is one indicator Number of technical and legislative drafting support for by-laws for the new cadastre law legislation (C.1.1). It applies only to the RS and the target is eight by-laws. The current figure is five, there are two studies underway, and it can be expected that at least one set of changes will be introduced in 2019, thus meeting the target. This does not include the gender policy RS GA developed under the Swedish funded Capacity Building for Improvement of Land Administration and Procedures in BiH (CILAP) project. In the FBH, a handbook on best practices in registration was produced and, again with CILAP project support, published. assigning responsibility for the software maintenance to the unit within the FBH GA. This alternative approach was required due to hiring and budget restrictions within the FBH MoJ. The FGA has worked with the FBH MoJ to resolve the budgetary issue. 14 In Croatia, which has an only slightly higher population than BiH, a similar free property enquiry service resulted in a comparably a total of 20 million hits in the years 2008 and 2009. Page 12 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Element 4. Capable, well trained staff and management 32. A further element of a registration system is the cadre of well-trained officials who can run the system. The relevant indicator (C.2) is the number of individuals trained, with a target of 6,100 participants. By December 31, 2018, some 7,781 participants had been trained. The target is thus exceeded and can be expected to go higher because training is on-going. The skills and knowledge are being used daily, particularly in relation to data harmonization/REC creation. Element 5. Physical infrastructure and equipment 33. Offices for staff to process applications, keep records and serve the public are essential. The relevant indicators (B.1) are purchase/renovation of 17 REC offices in RS and renovation of 49 land registry and cadastre offices in the FBH. Both targets have been exceeded with 18 REC offices acquired/renovated in RS using Project and RS GA funds, and 50 offices renovated in the FBH. In the FBH, renovations included the FBH GA headquarters in Sarajevo using Project and Budget funds. Offices were also equipped. Buildings, furniture and equipment maintenance costs should be met from recurrent budgets of the implementing agencies and courts, so these improvements can be considered sustainable. Element 6. Adequate resources and funding 34. The main activity under the Project that went to financial sustainability was the preparation of long-term strategies for sustainable real estate registration in both entities. These have been completed in 2016 and define strategic goals, activities and challenges for the land administration sector for the period 2016-2020. The FBH GA and the RS GA adopted business plans addressing the issues of resources and funding required to implement these strategies and they have successfully secured the required resources and funds. Although the RS GA has its own account within government, the current models of funding do not give the agencies the financial autonomy that is ideal for service-oriented institutions that can raise revenue. Much work is required for the implementing agencies to move to an independent financial status, and thus the work under the Project should be considered as preparatory only, with further work required under the AF. 35. In the absence of data on the costs and revenues of land administration services, it is not possible to say whether the RERP was successful in supporting the development of a financially sustainable system as defined in the PAD. Yet, the lack of data does not go to sustainability so much as to M&E design. Also, the PAD further specifies that the sustainability of a real estate registration system is measured by the degree institutions “charges affordable fees” and the indicators on registration of mortgages and transactions show that the system is being used and fees are not therefore a barrier. Per the definition provided in the PAD, institutions should also deliver “quality services without discrimination”. The use of web-based deliver and the vulnerability mapping activities show that the services are delivered without discrimination. As for the timeliness of services, data from the Doing Business reports show that, during the period 2012-2018, BiH has reduced transaction registration time from 33 to 24 days and improved its property registration ranking from 100 to 99. Justification of Overall Efficacy Rating 36. An efficacy rating of substantial is warranted on the basis that it can be expected that the RERP will met its revised targets by January 31, 2020. A split rating was considered because some targets were reduced at mid-term. At the same time, since the PDO-level targets were only reduced by approximately 10 per cent, the rating before and after mid-term restructuring tends to be the same and have no implication on the overall outcome rating. C. EFFICIENCY Assessment of Efficiency and Rating 37. The PAD’s Economic Analysis identifies three direct benefits from the Project, namely improvements in: a) compliance of registration and cadastre records; (b) registration service; and (c) access to credit. To measure these benefits, an ex- ante economic cost-benefit analysis (CBA) was prepared using two models: 1) a Property Market Dynamics model that Page 13 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) estimated the increase in market transaction volume and value due to improved registration services, and 2) a Mortgage Market Dynamics model that estimated the reduction of mortgage and consumer interest rates spreads. However, after a careful revision, the second model could not be replicated due to lack of information to verify whether changes in the mortgage interest rate could be attributed to the Project. Therefore, an ex-post economic cost-benefit analysis was carried out only using the Property Market Dynamics model, by replacing projected number of property transactions with actual project outputs and project costs directly related to the activities from the RERP. Yet, the question of attribution remains because the impact of data harmonization/REC creation work has only been felt in the last few years. 38. The project efficiency rating is substantial. The economic benefits were estimated to be EUR 297 million and they were calculated as the increase in property values and number of market transactions derived from investments in cadastre and registration systems that improved access to finance and other investments in the housing market. The project cost was EUR 30.6 million (present value of EUR 19.8 million) and included all the incurred and projected cost up to the closing of the Project. The Project’s ex-post economic benefits estimation is smaller than that expected at appraisal. This is due to smaller than predicted annual growth rate in transactions and value of properties in areas where the project was implemented. Nevertheless, the RERP is estimated to provide BiH with a net benefit of EUR 279.7 million, which is equivalent to an Economic IRR of 127 per cent (using a 12 per cent discount rate). Furthermore, 4 per cent of the total incremental market turnover will be received by the government as additional tax revenue through the property transfer tax. This amount is equivalent to a present value of EUR 36 million. While the above analysis confirms substantial efficiency rating, given the issue of attribution to the Project’s activities, longer term data is required that could more properly show a nexus between the activities and their economic impact. 39. When the Project was approved, it was expected that Credit 5188-BA would become effective by March 1, 2013, and that the project would be executed over five years and nine months from Approval. However, effectiveness was delayed by seven months, which means that there was a 13-month delay by the time activities fully commenced. Then, during implementation, it was observed that the time required for data harmonization and REC establishment had been underestimated. As a result, the project closing date was extended by 18 months, bringing the overall implementation period to seven years and three months. D. JUSTIFICATION OF OVERALL OUTCOME RATING 40. Considering the Project’s relevance (high), efficacy (substantial) and efficiency (substantial), an overall rating of Moderately Satisfactory is justified on the basis that there have been moderate shortcomings in achieving targets. There is still 13 months until the Project closing date and it may well be that by the end of the Project on January 31 2020, a higher rating would be justified. E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 41. Helping women register their rights requires actions, including an effective communications program and removal of procedural and attitudinal barriers. Various actions were taken under the Project to achieve these ends: 1) during preparation, an assessment of barriers to registration of women’s real property rights was conducted and informed the project’s communications program; 2) development of materials aimed at women and coordination with women’s representatives; 3) gender training for staff; and 4) software development to report on gender-based ownership disparities. Further, training reports provided gender disaggregated data on participants. Page 14 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 42. A great deal of credit for promotion of awareness and actions to facilitate women’s property ownership must go to the CILAP project. An important achievement was the development and adoption of a Policy for Gender Equality and Integrity Plan in the RS, with CILAP project assistance. 43. Other initiatives in which the entities were involved were the Food and Agriculture Organization (FAO) and GIZ15 sponsored Western Balkans Regional Initiative, which tracked gender and land ownership, and the World Bank sponsored Greater than Leadership course in which actions plans for promoting gender equality were developed. 44. Lessons learned are for the World Bank to maintain its stance on both overcoming barriers and promoting registration of women’s property rights, despite any initial pushback from partner agencies, and the power of facts to overcome perceptions and prejudices that women were treated equally. It also emerges from this experience that closing the gap is a long-term process and the issue needs to be persistently prosecuted, including through the media, with the assistance of gender disaggregated data. Engaging with local gender equality advocates, who can push the case between missions, and the agencies’ participation in gender workshops are other effective strategies to maintain momentum for reform. Institutional Strengthening 45. Sustainability of the agencies involved in real estate registration is the Project’s primary focus so institutional strengthening has been covered above. It is a key element of sustainability through system and legislative development, training, and infrastructures, among others. Mobilizing Private Sector Financing 46. No private sector financing was involved in the Project. However, as explained in section II.A, the Project supported BiH’s efforts to creating condition for accelerated private sector growth. Clear and secure property data supports trading of property, enables banks to accept property as security for mortgages, and thus permits access to lower cost loans for owners. Further, improved access to real estate records reduces transaction costs. Poverty Reduction and Shared Prosperity 47. The Project was firmly focused on addressing poverty by extending the benefits of property registration to all owners, which in the context of BiH includes people who routinely experience financial challenges. The costs of first registration of real property were covered by the Project, which removed that barrier to registration. Communications were directed specifically at the poor and vulnerable. Thus, all real property owners could benefit from registration, making their titles more secure, more tradable and more easily accepted as security for mortgages, which opens the way to lower cost loans and could in turn contribute to economic activity. Further, secure property ownership of the home can facilitate alterations and additions, such as improved cooking and cleaning facilities, that raise living standards and health. Other Unintended Outcomes and Impacts 48. No unintended outcomes or impacts were observed or reported. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 49. The Project was to be the second in a two-phase program, based on a strategy of “establishment [by 2016] of a well- functioning land administration system which facilitates investment and good governance”, as envisaged during preparation of the LRP. The design and manner of implementation of the LRP envisaged that a second project would follow. 15 Germany’s Gesellschaft fur Internationale Zusammenarbeit GmbH Page 15 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Therefore, preliminary and preparatory steps were undertaken during the LRP and completed during Project preparation. These steps include improving the legal framework, testing methodologies for data harmonization and REC establishment, completing IT strategies, and investing in human resources and technology. 50. Related to this was the growing depth of experience and knowledge of the implementing agencies and their staff under the LRP in not only registration, software development, policy and legislative development, M&E, but also how the World Bank operates. Likewise, many of the World Bank’s technical specialists had worked on the LRP and had long and wide experience in the countries of the former Yugoslavia and the region. So, both sides were well placed to design the RERP and to commence work as soon as it became effective. 51. The design of the Project itself was relatively straightforward and had been tested under the LRP and in comparable projects in the ECA region on numerous occasions. As discussed above, the basic elements of a sustainable real property registration system are well known. 52. Finally, due to long and commonly positive engagement over the period of the LRP, there were strong professional bonds between the agencies, the Bank team and the donors involved in the sector, with all sides respecting the knowledge, experience and bona fides of the other. This ensured frank and productive discussions, which were conducted on a much more equal and informed manner than was possible during preparation of the LRP. B. KEY FACTORS DURING IMPLEMENTATION 53. Numerous factors were at play during implementation. Firstly, there was the challenging BiH government system, with two entities and, in the FBH, with 10 cantons, which have responsibility for the cadastre and joint responsibility (with the FBH MoJ) for registration. Secondly, there was the delay between the LRP and RERP in 2012-13. In the FBH, difficulties with adopting legislation due to the complex governance arrangements in that entity also limited the extent to which the legal framework could be enhanced. 54. Only by strong leadership, diplomacy and a strong sense of ownership of the Project was it possible for the agencies, particularly the FBH GA, to ensure progress. Good management also ensured that staff were motivated, and their efforts were well coordinated with the aims of the Project. They also coordinated well with the donors to ensure best use of resources and synergies. This was facilitated by the shared objectives of the agencies and the World Bank team to achieve the Project targets. 55. There was also strong government support for the Project, as demonstrated by government funding to support activities (in the FBH, software maintenance, in the RS, REC creation and office acquisitions), prompt adoption of legislation to support improvements in REC creation in the RS, and support of leading politicians. 56. A realistic and pro-active attitude of the agencies and World Bank team to deal with issues as they arose was demonstrated throughout the Project. The team and agencies carefully monitored progress and, when issues arose, they took appropriate action in a timely manner. Solutions were formulated, tested and, if successful, promptly adopted. 57. The World Bank-FAO Partnership Arrangement proved very effective in delivering technical advice and supervision. Over the last two decades, the FAO has closely worked with the World Bank on numerous registration projects to advise governments on a range of topics, including surveying and mapping, valuation, IT and law. In BiH, FAO provided continuous IT support that both advanced the design and implementation of the various IT systems and provided a safeguard against expensive and time-consuming errors. FAO also provided support for data harmonization/REC and gender initiatives. 58. Cooperation and coordination with other donors greatly facilitated the achievement of Project targets. The Swedish funded assistance is proving highly valuable in aiding the implementing agencies to fully exploit the RERP funds to improve technology, skills and procedures, and thus customer service. The CILAP project provided funds and expertise for both Page 16 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) technical input (e.g. address register, sales price register, geodetic infrastructure, and digital archive) and many “soft” areas that countries are rarely willing to borrow for (e.g. strong gender focus that contributed to the RERP’s target of 35 per cent to be achieved). The Norwegian funded assistance, too, greatly enhanced the agencies’ ability to achieve the PDO. 59. There were no major external factors, such as macro-economic or budgetary issues, or conflict that affected project implementation. Frequent political uncertainties and catastrophic flooding in 2014 did affect the overall country development but did not have major direct impact on the Project. Compared to the LRP, which was implemented during the global economic crisis, external factors did not affect the RERP implementation. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 60. M&E under the RERP built on the strong base of data gathering and analysis under the LRP, some of which provided baseline data for the Project. Clear, pertinent and mostly measurable indicators were selected, and the agencies allocated the resources to gather and assess data. The indicators were primarily quantitative but included some qualitative measures, matching and covering the range of project activities envisaged to meet the PDO. The results framework clearly envisaged how the data would be collected, such as reports, assessments and customer surveys. However, there were shortcomings: certain indicators could not be easily measured, and thus they were dropped in the 2017 restructure. These included data on revenues and costs, “average cost to user for secondary real estate registration” and “amount of time an average customer spends in the front office per visit for real property transfer and mortgage registration”. Also, certain targets were, in retrospect, set too high or too low (see Annex 1). M&E Implementation 61. Data were routinely collected throughout the Project. The first of two customer surveys were conducted in 2015 (FBH) and 2016 (RS). The first of two impact evaluation (IE) studies were undertaken at the start of the Project. The M&E results were generally of a high and reliable standard. There was a strong commitment to M&E on both sides. M&E data were openly reported on the implementing agencies’ web sites and in the Implementation Status and Results Reports. There were, however, some difficulties. The M&E rating was downgraded in late 2017 due to difficulties in obtaining certain data, although these difficulties were promptly addressed. Finally, delays in the second customer surveys and IE studies meant that a valuable source of information was not available for this interim ICR. M&E Utilization 62. The M&E reports were closely considered and used by the World Bank team and agencies to assess progress, identify issues, and make modifications as required. The Project’s M&E reports progressively became a mainstream management tool and now occupies a central place in the agencies’ set of management tools. This is demonstrated by the adjustments between disbursements categories requested by RS GA, for example, from office purchase to REC creation activity as it become clear additional investments would be required to meet the PDO level targets related to REC creation. Similarly, the M&E reports provided a structure for discussions during supervision missions. The reports were also used in policy engagement, particularly regarding women’s real property ownership. Finally, the practice of transparently reporting results can be seen as a notable improvement in governance and a best practice example for other government bodies in both entities. It can be expected that the current manner of M&E utilization will continue in the final year of the Project. Justification of Overall Rating of Quality of M&E Page 17 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 63. The rating of Modest is justified for the Project’s M&E on the basis that although much of it was well designed and implemented, there were also weaknesses in several design aspect. Certain targets should have been more realistic and several indicators could not be monitored in practice. As the results framework had to be adjusted in 2017. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 64. There were no waivers of the Bank’s safeguards/fiduciary policies. OP4.01 Environmental Assessment was triggered but no issues arose during implementation. The compliance with OP4.01 included an Environmental Management Plans for each of the sites where facilities were renovated. These plans were part of the contractual documents and were also disclosed at the location of works. No issues were noted during supervision or World Bank visits, and all works were done in close cooperation with other building users. No works were done beyond the existing footprint of the buildings. Overall safeguards and environmental assessment have been rated satisfactory throughout the Project. 65. Financial management was also rated satisfactory throughout the Project. The implementing agencies have fully complied with the covenants of submitting acceptable financial reports including audits. The audit report for the year ending December 31, 2017 was submitted late on July 12, 2018, due to the late selection of an audit firm. The auditors have issued an unmodified opinion on the Project Financial Statements prepared by the PIUs. 66. Procurement risk rating at the time of writing was Moderate and procurement performance rating was Satisfactory. The government had responded to all pending issues raised in the last Procurement Performance Review. Generally, procurement functioned well with some delays in approvals and payments. There were no integrity investigations. C. BANK PERFORMANCE Quality at Entry 67. Project preparation commenced during the final supervision missions of the LRP, so the Bank team was familiar with the circumstances and needs of BiH regarding real property registration. Working with counterparts, the team accurately identified what was needed for the next stage of land administration in BiH, and they formulated a realistic set of activities to deliver the improvements. Poverty, gender and social developments aspects were considered in what is a mostly technical project, with a special focus on women and vulnerable groups. In general, the team’s design matched the needs and capacity of the country, accurately identified the elements of a well-functioning land administration system, matched those elements with appropriate activities, and tailored the design to overcome risks or minimize their consequences. Lessons learned and experience from the LRP and neighboring countries were incorporated in the design. 68. Shortcomings with the design concerns the M&E (see section IV.A). Further, the failure to accurately assess the time and cost involved in data harmonization/REC establishment was a shortcoming, as demonstrated by the increased costs experienced in practice and consequential changes to indicators. Finally, the lack of focus on financial sustainability in the project design was a noteworthy omission. Quality of Supervision 69. The Bank supervision was mostly appropriate and well targeted throughout the Project. Aide memoires show how the supervision team identified problems promptly, delivered clear assessments, accepted necessary developments and provided appropriate and direct advice to move forward.16 Performance ratings were set in an objective manner that reflected the situation on the ground. The team demonstrated flexibility and technical competence in responding to and dealing with problems or unforeseen events. Procurement was facilitated by a locally based procurement officer for 16 The delay in securing the October 2017 restructure can be attributed to the complexity of reaching formal agreement in BiH. Page 18 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) much of the project period. Reporting obligations were met promptly and to a professional standard. The one issue with the Bank team was the frequent change of social specialist, with four staff assigned over the course of the Project. 70. Counterparts within the implementing agencies reported that the World Bank’s supervision assistance was of a high standard, appropriate and provided in a professional manner. The Bank team’s advice was, they said, highly appreciated, particularly when new or novel problems were encountered. Justification of Overall Rating of Bank Performance 71. The efforts of the World Bank preparation and supervision teams ensured quality at entry and supported effective implementation through appropriate supervision. Most aspects of the World Bank team’s performance were delivered to a high standard. However, because of the concerns relating to quality at entry and M&E, an overall rating of Moderately Satisfactory is justified. D. RISK TO DEVELOPMENT OUTCOME 72. The question of risk to the development outcome is close linked to the PDO of a sustainable registration system. There would appear to be few risks to the Project’s achievements that feed into the development outcome. The agencies are well established at the organizational level, they are functioning effectively, and the governments recognize their successes. Services are in demand and routinely used by the public. While funding is commonly an issue for government bodies, the agencies in both the FBH and RS have strong political support and financial support from their respective entity government. They are also showing good revenue flows from their services that would support a move to self- financing status. In the FBH, the volume and value of transactions have tripled or quadrupled from a baseline figure of 70,000 transactions valued at BAM 644 million (EUR 329 million) to 304,640 transactions at a value of BAM 2.803 billion (EUR 1.065 billion) by the end of 2018. In the RS, the figures have also risen, somewhat more modestly, from 44,000 transactions worth BAM 405 million (EUR 207 million) to 55,660 transactions worth BAM 512 million (EUR 262 million). 73. A major concern relating to sustainability was maintenance of the FBH registration software (e-Grunt), which had been supported by LRP and RERP funds through out-sourcing for over a decade. The rationale was that the FBH MoJ did not have a budget and an IT department. The FBH government addressed the first problem by transferring responsibility for the software maintenance to the FBH GA, which has a fully functioning IT department. The second issue was finally resolved in 2018 when the government issued a decree allocating certain funds to the maintenance of the FBH software. 74. Regarding the financial sustainability of the registration system, current models of funding do not give the RS GA and FBH GA financial autonomy. Reconsidering the existing funding models would appear to be desirable as the RS GA and FBH GA are service-oriented institutions that can raise revenue. Some work is required for such shift to occur. The implementing agencies intend to conduct an in-depth assessment under the proposed AF to further strengthen the sustainability aspect. V. LESSONS AND RECOMMENDATIONS 75. The two-phase approach adopted provided a realistic model for bringing countries with limited capacity and infrastructure up to international standards. The RERP is the second of two steps that were envisaged as part of a longer- term program to modernize land administration in BiH. This approach requires a longer timeframe than is the norm for World Bank projects and an acceptance that post-conflict societies cannot be transformed within five years. Further, it requires both sides to share the vision and agree to an incremental, patient approach, albeit one that is significantly lower risk than more rapid approaches. Finally, it means that some owners will have to wait for years before they, too, can share in the benefits data harmonization / REC creation. Page 19 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 76. The strong leadership from the implementing agencies was critical to overcome the challenges posed by the complex BiH government structure. Real estate registration projects tend to be highly technical and require strong implementation support. In BiH, the complex government structure made project implementation more challenging, but this was largely overcome by the implementing agencies’ strong leadership. Over both the LRP and RERP, government support has ranged from good to strong, and there has been strong leadership within the geodetic authorities. Linked to leadership are management skills, which have developed strongly during the RERP, and can be contrasted with the less- than-optimal management approach and lack of planning commonly observed at the start of the LRP. Now, planning is recognized as an essential step and monitoring as a key management tool. Likewise, flexibility and responsiveness have been demonstrated in implementation, which reflects not only increased capacity but also a level of confidence that has emerged within the agencies in recent times. 77. The continuity of the parties on the World Bank and BiH sides provides another lesson in good management. There were only two task team leaders during preparation and implementation. The World Bank’s team remained mostly consistent and there was a consistency of management and technical experts on the BiH side, particularly in the FBH GA. This consistency permitted close working relationships and trust to develop and mature, such that at the time of writing, the relationship had developed into a close professional partnership. The implementing agencies’ management also demonstrated strong Project ownership, as evidenced by their active engagement with senior levels of government, the donor community and the World Bank to overcome hurdles to implementation and gain access to additional funds. 78. The modular approach to developing IT systems should always be considered. A phased, step-by-step approach to development and rollout works well and can be easier to implement than a system that seeks to do everything from the start (and that commonly fails). Starting from a basic registration system, the software was progressive expanded over the course of the RERP to meet the needs of agencies as capacity to utilize new modules increased. Using experienced in-house experts plus donor expertise also helped to build both software and IT capacity, which are then available for ongoing changes in the IT sector. This lesson is particularly valuable for RS, where the RS GA intends to replace its cadastre and land registration software. 79. Delays with effectiveness is a recurrent issue in BiH that should be dealt with. It took 11 months for the RERP to become effective, which adversely affected Project implementation. According to the 2018 CPF Performance Learning Review, delays in effectiveness are a chronic issue in BiH that is, in part, imputable to complex signing and ratification procedures. To address this issue, the Performance Learning Review advises World Bank teams to map out all processes and work closely with the Governments at the state and entities levels. These recommendations should be considered during the preparation of the AF. 80. Monitoring the financial sustainability of the BiH real estate registration system proved to be more challenging than expected. The PDO includes an element related to the financial sustainability of the BiH real estate registration systems, and the results framework’s initially included indicators measuring the revenues and costs of these systems. During implementation, the implementing agencies realized that it was not possible to monitor these indicators because. As a result, it is currently not possible to determine to what extent the Project supported the development of financially sustainable real estate administration systems. Although it will be difficult to obtain accurate data on the revenues and costs of the FBH and the RS real estate registration systems, such data should be obtained during the AF and reflected in the implementing agencies’ business plans. In parallel, policy discussions on a possible shift to a sustainable institutional framework for real estate registration in the FBH and self-funding status in both entities is required. Experience elsewhere shows that reliance on central budget funding creates uncertainty and restricts what agencies can achieve. . Page 20 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Cadastral Municipalities with harmonized land register and cadastre data/established REC Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Cadastral Municipalities Number 35.00 524.00 468.00 427.00 (CMs) with harmonized land register and cadastre 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 data/established REC in urban areas Comments (achievements against targets): This indicator can be expected to be achieved and exceeded by the closing date, but it is unlikely to achieve the original target of 524 CMs. Harmonization/REC creation has gained pace in the final year of the Project, with FBH (for example) completing 10 CMs in January 2019, with an achieved figure of 174 CMs versus planned 163 CMs at Dec. 31, 2018, and with an unchanged target of 278 CMs. In the RS, additional budget funds have permitted more REC creation work. As at Dec. 31, 2018, the RS had completed 253 CM (against a Project target for the RS of 190), of which 88 CMs were funded by the budget. Page 21 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion CMs with land register and Percentage 8.00 100.00 100.00 100.00 cadastre/Real Estate Cadastre data publicly 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 accessible online Comments (achievements against targets): This indicator has been achieved. It is not expected that it will drop because all new data will be entered in the systems that allow online access. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Direct project beneficiaries Number 90000.00 1680000.00 1480000.00 1326579.00 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Female beneficiaries Percentage 30.00 35.00 35.00 35.10 31-Jul-2018 31-Jan-2020 Comments (achievements against targets): As with PDO indicator no 1, and for the same reason, PDO indicator no 3 can be expected to be achieved and exceeded by the closing date, but it may not achieve the original target. PDO indicator no 4 (Direct project beneficiaries, female beneficiaries) has been achieved (slightly Page 22 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) exceeded) and is unlikely to drop in the final year of the Project as there are high levels of new constructions and women are more likely to be recorded as owners because they are becoming more economically independent, as per advice of local notaries. A.2 Intermediate Results Indicators Component: Component A - Real estate registration data development Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Public awareness campaign Number 0.00 489.00 468.00 408.00 completed for RERP harmonization/REC 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 establishment in target areas Comments (achievements against targets): This indicator can be expected to be achieved because it is in line with the harmonization/REC establishment work. It is in fact the preliminary step in the processes, so as harmonization/REC establishment work is rolled out, the public awareness campaign will be conducted in the affected CMs. It is, however, unlikely to achieve the original target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 23 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Cadastral Municipalities Number 0.00 489.00 433.00 443.00 (CMs) covered by the vulnerability mapping 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been achieved and exceeded 13 months prior to closing of the Project. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Target land area with use or Hectare(Ha) 0.00 503000.00 590655.00 ownership rights recorded as a result of project 24-Sep-2012 31-Jul-2018 31-Dec-2018 Comments (achievements against targets): This indicator has been achieved and exceeded. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion European Terrestrial Percentage 0.00 100.00 100.00 0.00 Reference System (ETRS) in use in cadastral surveys in 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Page 24 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Bosnia and Herzegovina (RS) Comments (achievements against targets): This indicator may not be met in the final year of the Project due to procurement problems. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Cadastral maps in digital Text 65% (RS); 27% (FBH) 93%(RS); 40%(FBH) 80%(RS); 40%(FBH) 70% (RS); 62.6% (FBH) form of the entity territory 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been met and exceeded for the FBH but not yet met in the RS. The indicator may not be met by the closing date, although only 10% of maps are yet to be digitized, because REC creation is occupying key staff and there are tendering delays (using government funds), plus some 7% of RS territory does not have a new survey so it cannot be vectorized. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Analytical reports produced Yes/No N Y Y Y on disaggregated data to support decision-making 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Page 25 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) (gender) Comments (achievements against targets): This indicator has been met and it can be expected that such reports will continue to be produced in the final year of the Project. Component: Component B - Real estate registration infrastructure development Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Real Estate cadastre Offices Number 0.00 17.00 17.00 18.00 purchased/renovated (RS) 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been met and exceeded by one office. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Land registry and cadastre Number 29.00 49.00 49.00 50.00 offices renovated (FBH) 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Page 26 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Comments (achievements against targets): This indicator has been met and exceeded by one office. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Sustainable IT Unit with Text Unit established in RS Fully sustainable IT Fully sustainable IT RS GA and FBH GA competent staff operational and in the FBH GA. units in both entities structures in both have fully sustainable in GA/MOJ entities IT structures. In FBH the responsibility to maintain the land registry software was transferred from the MoJ to the FBH GA. 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been met in FBH following the transfer of responsibility for the software from the MoJ to FBH GA, which has a fully functioning IT department, by a FBH Government decision. Maintenance of the software is financially sustainable following a government decision, reflected in the budget, to allocate funds on an annual basis to maintain the software. In the RS, this indicator was achieved and the work is funded by RSA GA’s budget. Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 27 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Target Completion E-services type provided for Number 2.00 10.00 10.00 9.00 key stakeholders 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is close to being achieved, with one further e-service required to be developed and introduced in the final year of the Project. This will be the tracking of the status of application, which the RS GA has agreed to develop in 2019. E-services types introduced by the FBH GA are: 1) Extract from the cadastre plan - Digital Cadastre Plans; 2) Extract from the possession sheet - Digital Possession Sheets; 3) Extract from the Cadastre - Digital Cadastre Extracts. Additionally, the FGA is providing access to cadaster data is enabled for the State Investigation and Protection Agency (SIPA) and for the Intelligence & Security Agency of Bosnia and Herzegovina (OSA BiH). The FBH MoJ has also introduced the following e-services: 4) Extract from the property register (not digitally signed); 5) tracking the status of applications. In the RS, the RS GA introduce the following e-services: 6) e-Katastar; 7) e-Gruntovnica (Land Registries data); 8) e- Book of deposited contracts for Banja Luka (apartments); and 9) eService with MoJ - cadastral and address register data. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion No. of delivered e-services Number 0.00 30000.00 30000.00 4345717.00 per year 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been significantly exceeded. Page 28 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Electronic conveyancing Yes/No N Y Y N technically enabled 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): E-government platforms have been developed for FBH and RS, which work with e-signature and e-payment. Those can be linked to the government systems. Tests have been done by FBH GA and RS GA. Due to the lack of legal framework and certification authorities for e- signature there was no need to do the same tests with registration software. The indicator has been met from a technical perspective but will not be operational until the legal and institutions arrangements are fully in place, which are outside the responsibilities of the agencies. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion System technically enabled Yes/No N Y Y N with key registers (Personal ID, Company ID, Address 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Oct-2018 Registry) Comments (achievements against targets): The target has been achieved for FBH (cadaster system). The indicator is expected to be achieved in the final year of the Project for the whole country. In the RS, agreement with the Ministry of Interior has been signed (exchange of Personal ID and Address Regitry data) and web Page 29 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) services are in the testing phase. Agreement with the Agency for Intermediary, IT and Financial services (APIF) has been signed (exchange of Business Entities register, Cadastral and Address Registry data). The arrangements are currently being tested. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IT System capable to Yes/No N Y Y Y maintain harmonized data 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Digital archive operational in Number 3.00 20.00 20.00 89.00 priority offices 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): Page 30 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) This indicator has been greatly exceeded over its target of 20 offices, with 89 operational at Dec. 31, 2018. In the FBH, digital archives are operational in 82 offices. In the RS, digital archives are just being rolled out, and an additional ten offices can be expected to have digital archives by the end of the Project. Component: Component C - Policy and institutional development, and project management Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Volume and value of Text “Volume of Volume of mortgages: Volume of mortgages: RS: Volume of mortgages mortgages: 15810, 20200, Value: 2.807 20200, Value: 646m mortgages: 18474, Value: 506 million million (RS); Volume (RS); Volume of value: 591 million. (RS); Volume of of mortgages: mortgages: 140.000, FBH: volume of mortgages: 90.000, 140.000, Value: 4,480 Value: 4,480 million mortgages Value: 2,880 million” million (FBH) (FBH) (cumulative): 229770; value: 7353 million BAM. 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is close to being met in the RS for both volume and value of mortgages, and with the boom in construction in Banja Luka (the capital of the RS), the indicator should be met in 2019. In the FBH, the indicator has been significantly exceeded. It is noted that the data in RS does not reflect mortgages of apartments kept in the Book of Deposited Contracts, and thus the data understate the true situation. In the FBiH, the data reflects mortgages of apartments in the Book of Deposited Contracts for Sarajevo and Mostar and for apartments transferred from the Book of Deposited Contracts to the land registry through harmonization of data. Page 31 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Volume and value of Text 44000/ 405 million* 56000/517 million Volume: 56,000. RS: 55660/512 million transactions or requests for (RS); 70,000/644 (RS); 90,000/828 Value: 517m (RS); BAM; FBH: 304640 registration in land registry million**(FBH) million (FBH) Volume: 90,000, Value requests/2803 Million offices 828 m(FBH) BAM (In CY2018) 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is close to being met in the RS for both volume and value of transactions, and with the boom in construction in Banja Luka (the capital of the RS), the indicator should be met in 2019. In the FBH, the indicator has been significantly exceeded. In the FBH, the data reflects transactions with apartments in Sarajevo and Mostar. It is noted that the data does not reflect transactions with apartments which are kept in the manually maintained Book of Deposited Contracts, and thus the data understate the true situation. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion No. of technical and Number 0.00 8.00 8.00 8.00 legislative drafting support for by-laws for the new 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 cadastre law legislation (RS) Comments (achievements against targets): Page 32 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) This indicator is expected to reach seven in 2019 as two assignments on land consolidation are currently underway. It is possible therefore that the target of eight will be reached by the close of the Project in January 2020. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Long-term strategy Number 0.00 2.00 2.00 2.00 developed for sustainable real estate registration 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Oct-2018 Comments (achievements against targets): This indicator has been achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Public Awareness Campaign Number 0.00 2.00 4.00 3.00 completed 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is partly achieved, with the last of the four campaigns to be undertaken in 2019 in the RS. Preliminary work on this six month long campaign is currently underway, so it can be expected that this indicator will be met by the middle of 2019. Page 33 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion No. of participants trained Number 1047.00 6100.00 6100.00 7781.00 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been significantly exceeded. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Customer Surveys completed Number 0.00 6.00 4.00 2.00 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is half achieved, with the final two customer surveys planned for 2019. It can be expected that the indicator will be achieved by the end of the Project in January 2020. Page 34 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion User perception of quality of Percentage 75.00 90.00 80.00 78.00 real estate registration services, private and public 25-Jan-2013 31-Jul-2018 31-Jan-2020 31-Dec-2018 sector users is maintained Comments (achievements against targets): This indicator is two percentage points shy of being achieved at Dec. 31, 2018. The users’ perception will be deduced from the customer surveys to be conducted in 2019. There is insufficient information to make an estimation of whether it will achieve the target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Impact Evaluation Survey Number 0.00 2.00 2.00 1.00 completed 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator is half achieved, with the second and final phase of the IE planned for 2019 (see Annex 7, paragraph 4 of the PAD). Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion Page 35 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Target M&E quarterly reports Yes/No N Y Y Y produced 24-Sep-2012 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): This indicator has been achieved throughout the Project and no change is expected in the final year. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Target popln with use or Number 102500.00 1680000.00 1480000.00 1326579.00 ownership rights recorded as a result of the project 25-Jan-2013 31-Jul-2018 31-Jan-2020 31-Dec-2018 Comments (achievements against targets): Data as per Direct Project Beneficiaries PDO Indicator, and thus the comments are the same. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Land parcels with use or Number 516000.00 1113000.00 1116602.00 Page 36 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ownership rights recorded as 26-Oct-2017 31-Jan-2020 31-Dec-2018 a result of the project Land parcels with Number 0.00 369858.00 473012.00 use/ownership rights recorded as a result of 24-Sep-2012 31-Jan-2020 31-Dec-2018 project-female Comments (achievements against targets): FBH: 512145, RS: 604457 (as of Dec 2018) - for main indicator. This indicator has been exceeded and it can be expected that the number of land parcels will continue to increase during the final year of the Project. Data as per Direct Project Beneficiaries – Females PDO Indicator, but expressed as a number rather than a percentage, and as thus the comments are the same. Page 37 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) A. KEY OUTPUTS BY COMPONENT Objective/Outcome 1 Support development of a sustainable real estate registration system Outcome Indicators CMs with land register and cadastre/REC data publicly accessible online European Terrestrial Reference System (ETRS) in use in cadastral surveys in Bosnia and Herzegovina (RS) (Percentage, Custom) Cadastral maps in digital form of the entity territory Analytical reports produced on disaggregated data to support decision-making (gender) Real Estate cadastre Offices purchased/renovated (RS) Land registry and cadastre offices renovated (FBH) Sustainable IT Unit with competent staff operational in FBH GA/MOJ E-services type provided for key stakeholders No of delivered e-services per year Electronic conveyancing technically enabled System technically enabled with key registers (Personal ID, Company ID, Address Intermediate Results Indicators Registry) IT System capable to maintain harmonized data Digital archive operational in priority offices Volume and value of mortgages Volume and value of transactions or requests for registration in land registry offices No of technical and legislative drafting support for by-laws for the new cadastre law legislation (RS) Long-term strategy developed for sustainable real estate registration Public Awareness Campaign completed No of participants trained Customer Surveys completed Page 38 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) User perception of quality of real estate registration services, private and public sector users is maintained Impact Evaluation Survey completed M&E quarterly reports produced 100% CMs with land register and cadastre/REC data publicly accessible online 62.6% (FBH) and 70% (RS) of cadastral maps in digital form of the entity territory Analytical reports produced on disaggregated data to support decision-making (gender) – produced on a quarterly basis 18 REC Offices purchased or renovated (RS) 21 land registry and cadastre offices renovated (FBH) (baseline of 29) Appropriate furniture and equipment acquired for new and renovated offices. Sustainable IT Unit with competent staff operational in FBH GA to support land registration software Annual budget to fund maintenance of land registration software obtained Key Outputs by Component (FBH) (linked to the achievement of the 9 e-services type provided for key stakeholders with another under Objective/Outcome 1) development 4,345,717 e-services delivered per year 1 system (FBH) technically enabled with key registers (Personal ID, Company ID, Address Registry), with the RS system about to be implemented 2 IT System capable to maintain harmonized data 89 digital archives operational 5 new or amended legislation and rulebooks 2 strategies for long-term sustainable real estate registration developed 3 public awareness campaigns conducted, with one underway 7,781 participants trained 2 customer surveys conducted Page 39 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 78% of users consider registration services maintained (2015 figure) 2 IE surveys conducted M&E reports produced quarterly 1 gender policy produced and adopted (RS) 1 ICT strategy developed (FBH) 1 system for converting old to new coordinates system developed (RS) Objective/Outcome 2 Harmonized land register and cadastre records in urban areas of both entities Cadastral Municipalities (CMs) with harmonized land register and cadastre data/established REC in urban areas Direct project beneficiaries Female beneficiaries Target land area with use or ownership rights recorded as a result of the Project Target population with use or ownership rights recorded as a result of the Outcome Indicators project (Bank core indicators) Land parcels with use or ownership rights recorded as a result of the project (Bank core indicators) Land parcels with use/ownership rights recorded as a result of project-female (Bank core indicators) Public awareness campaign completed for RERP harmonization/REC establishment in target areas CMs covered by the vulnerability mapping Intermediate Results Indicators Analytical reports produced on disaggregated data to support decision-making (gender) M&E quarterly reports produced Page 40 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 427 CMs with harmonized data/REC created 1,326,579 project beneficiaries 35.1% female project beneficiaries 590,655 hectares with use or ownership rights recorded as a result of the Project 1,326,579 Target population with use or ownership rights recorded as a result of the project (per PDO Indicator) 1,116,602 and parcels with use or ownership rights recorded as a result of the project 473,012 land parcels with use/ownership rights recorded as a result of project- Key Outputs by Component female (per PDO indicator, but expressed as a number, not percentage) (linked to the achievement of the 408 CMs covered by public awareness campaigns for harmonization/REC Objective/Outcome 2) creation 443 CMs covered by vulnerability mapping Analytical reports showing gender disaggregated data produced since 2014 M&E reports produced quarterly 26 vehicles acquired 92 items of technical surveying equipment acquired multiple items of IT acquired, including 590 desktops, 41 laptops, 186 scanners, 7 servers, 506 printers, etc. 827 temporary employees engaged in REC creation (RS), 155 clerks (FBH) 14 field offices established (RS) Page 41 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Mika-Petteri Torhonen Task Team Leader(s) Nikola Kerleta Procurement Specialist(s) Lamija Marijanovic Financial Management Specialist Naima A Hasci Social Specialist Esma Kreso Beslagic Social Specialist Sandra Kdolsky Social Specialist Supervision/ICR Camille Bourguignon-Roger, Mika-Petteri Torhonen Task Team Leader(s) Sidy Diop, Anne N. Ranasinghe, Nikola Kerleta Procurement Specialist(s) Lamija Marijanovic Financial Management Specialist Mirjana Atijas Karahasanovic Team Member Roxanne Hakim Social Specialist Alvaro Federico Barra Team Member Larysa Hrebianchuk Team Member Esma Kreso Beslagic Environmental Specialist A. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY12 9.675 91,163.51 FY13 3.515 34,950.48 Total 13.19 126,113.99 Supervision/ICR FY13 7.238 119,946.27 FY14 22.459 104,001.85 FY15 39.367 145,293.20 Page 42 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) FY16 12.842 66,058.27 FY17 16.001 73,882.89 FY18 18.911 105,443.38 FY19 24.851 183,573.15 FY20 3.750 28,042.55 Total 145.42 826,241.56 Page 43 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 3. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Percentage of Approval Components (US$M) Closing (US$M) (US$M) Component A - Real Estate Registration Data 18.3 20.1 110 Development Component B - Real Estate Registration Infrastructure 11.1 10.3 93 Development Component C - Policy and institutional development, 4.7 3.7 79 and project management Total 34.10 34.10 100.00 Page 44 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 4. EFFICIENCY ANALYSIS 1. At the time of the RERP’s appraisal, the Bank team identified three potential direct benefits from the Project: (a) improvement in compliance of registration and cadastre records; (b) improvement in the registration service; and (c) improved access to credit. These benefits, according to the PAD, would manifest themselves, inter alia, in the form of increased market turnover rates through increased transactions, appreciated property values and increased availability of real estate financing. Using these assumptions, the team prepared an ex-ante economic cost-benefit analysis (CBA) that aimed to measure economic benefits through two models: • Property Market Dynamics (Model 1): It estimated the increase in market transaction volume and value due to improved registration services. According to this model the assumption is that improved registration services will lead to i) to an increase in market turnover size, and ii) an increase in government tax revenues due an increment in transfer tax collection (which is a financial benefit not an economic benefit). • Mortgage Market Dynamics (Model 2): It analyzed the economic benefits through the lens of access to finance. Inefficient property registration systems as well as an underdeveloped mortgage markets result in higher interest rates as people take out consumer loans instead of mortgages. Implementing a more efficient and secure registration system, together with benefits to the housing finance system provided by more accurate property records and elimination of registration delays, would reduce and eventually eliminate these spreads between interest rates. 2. Following the Bank’s standard approach to economic analysis as set out in OP/BP 10.00 (Investment Project Financing), the ICR economic analysis presents the CBA results at appraisal and re- estimates them at completion based on actual latest cost figures, updated projection of benefits, and presenting any underlying assumptions about costs and benefits, plus other information supporting the analysis. Ex-ante economic analysis Property Market Dynamics (Model 1) 3. The premise behind Model 1 is that investments in cadastre and registration systems improve access to finance and other investments in the housing market. Improvements then are reflected in the future number of transactions as well as the average property prices, the product of which would determine the total market value. 4. Using “with project” and “without project” scenarios, incremental market growth was estimated within the context of a macro model. Without the Project the number of property transactions is estimated to increase from 114,000 per year in year 1 to 138,898 per year in year 20. With the Project, however, market transactions are expected to increase from 114,000 per year to 177,000 per year over the course of 20 years, while average property value will increase to €59,732 from €41,380. As a result, it is expected that the Project would generate incremental market turnover of €4.75 million in year one increasing €10.57 million annually from year 14 onwards. Assuming that the Project’s impact can be attributed to only 10% of the total market turnover, and that one third of the incremental turnover can be translated into project benefits, the net present value (NPV) at a 10% interest rate of this increase in market turnover over 20 years is equal to €400 million with an economic rate of return (ERR) of 76%. Furthermore, 4% of the total incremental market turnover will be received by the government as additional tax revenue through the property transfer tax. This amounts to an NPV of €48 million over 20 years. Page 45 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Mortgage Market Dynamics (Model 2) 5. On the other hand, the hypothesis behind Model 2 is that because of improved access to finance, consumers will have increasingly easier access to mortgages instead of consumer loans and consequential economic benefits will materialize in the form of avoided interest payments by consumers (typical interest rate on a consumer loan in BH by the time of appraisal was about 250 basis points higher than the interest on a mortgage). 6. To be able to compare scenarios with and without the project, it was assumed that a) the average property value remains constant, and b) the Project has no effect on the volume of property transactions per year. It also assumed that without the Project only 30% of all loans made to consumers are in the form of mortgages, while the remaining 70% are in the form of more expensive consumer loans with a guarantor. With the Project, however, it was estimated that after 10 years a full 98% of consumers taking out a loan of some kind to finance their homes will have access to mortgages. Furthermore, it is assumed that with the strengthening of the financial sector and registration institutions, and the subsequent increase in mortgage transactions, the mortgage rate in BH will decline over time to a level comparable to those in similar economies. If the Project covers 10% of all real estate transactions and that only 50% of the total incremental improvements are attributable to project activities, the avoided interest payments, due to the increased access to mortgages, amounts to a benefit with an NPV of €171 million at a 10% discount rate, which, given project costs of €23 million, equates to an ERR of 34% over 20 years. 7. Nevertheless, after a thorough revision, it became apparent that Model 2 could not be replicated due to lack of sufficient information to verify whether changes in the mortgage interest rate could be attributed to the Project. For instance, any modification on financial system development policies, any expansion of the insurance sector and stock market, or any increment of long-term funding sources during the Project were also associated with mortgage market development, thus making it very difficult to prove causality. Ex-post economic analysis 8. Overall, project efficiency is a measure of how economically resources and inputs are converted to results. To assess efficiency, it is necessary to demonstrate whether the costs involved in achieving the operation’s objectives were reasonable in comparison with its benefits. As such, an ex-post economic cost-benefit analysis was carried out to evaluate the worthiness of the RERP to the citizens of BH. 9. To carry out the ex-post economic CBA, the ex-ante economic analysis is re-calculated for Model 1 by replacing projected number of property transactions with actual project outputs and project costs directly related to the activities from the RERP. Page 46 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Assumptions: EX-ANTE EX-POST Parameters Without Project With Project Comment Without Project RERP Actuals Comment Actual figures Number of Real 114,000 transactions per year Baseline indicator shared by the PIUs Estate Transactions - representing an overall turnover of 121,049 transactions from MOJ and GA (RS=49,284 and Base Year less than 4% FBH=71,765) €47,000 (Sarajevo) and €36,000 Actual values (Tuzla) for average shared by the PIUs Average Price of apartment size of for average Property Transacted 55 sqm sold in past €41,686 €45,250 apartment size of on the Market - Base two years. Data 55 sqm sold in Year from Maho Taso, 2013 (RS=€36,000 General Director and FBH=€53,900) of Prostor Ltd Real Estate Agency. This is the hypothesized Rates have been market spurring The average annual updated using 5% growth per The annual growth in 2.5% growth per effect due to growth in transactions in actual figures and it annum transactions from RERP annum assumed improved cadastre areas not covered by was assumed that assumed until was 3.83% (RS=2.0% and Rate of growth in until the figure and registration RERP was 3.22% the number of the figure FBH=5.7%). As in the ex- real estate stabilizes at about services. It is (RS=1.6% and transaction, with stabilizes at ante analysis it is transactions 139,000 estimated that FBH=4.8%). It is assumed and without the about 177,000 assumed that it stabilizes transactions per 38,000 extra that the figure stabilizes project, stabilizes transactions at 177,000 transactions annum. transactions per at 177,000 transactions at 177,000 per annum. per annum. annum will take per annum. transactions per place as a result of annum. this effect. Page 47 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 3% growth per Rates have been The average annual annum updated using 1.5% increase per The difference can growth of the value of a assumed until actual figures annum assumed be interpreted as property in areas the figure provided by the until the figure the market The average annual covered by the project stabilizes at PIUs. Due to lack of Rate of Growth in stabilizes at premium on growth of the value of a was 2.15% (RS=1.26% €59,732 data it was Average Value (Price €50,116 securely titled property in areas not and FBH=2.97%). As in representing a assumed that in of Property) per representing a property. It is covered by the project the ex-ante analysis it is real increase the RS there is not transaction real increase of roughly equal to was 0.69% (RS=1.26% assumed that the figure of reduction difference in prices 20% over the 20% as and FBH=0.12%). stabilizes at of 43% over growth between initial base value experienced in approximately €64,000, the initial base areas covered and of €41,686. other countries. which represents an value of not covered by the increase of 43%. €41,686. project. According to the Area Coverage or PIUs the coverage Market Penetration None 10% See PAD None 14% area reached 14% Rate by the by the end of the Proposed Project Project. This assumption is needed to For both with or without project eliminate the scenarios, it is assumed that over a effects of Conversion of 20 year planning horizon, double/triple Market Turnover approximately only one-third of the counting of the Same as ex-ante analysis Values into Project total number of transactions would same property Benefits actually result in appreciation of being transacted property value. on the market without impacting its price. Discount rate % 12% Same as ex-ante analysis 4% of the 3.5% in RS; 5% in Real Estate Transfer 4% of the market market value FBH. Property tax Same as ex-ante analysis Tax value per current per current is negligible (0.05- legislation legislation 0.5% of value) Page 48 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Results 10. The ex-post CBA replicated the ex-ante analysis but using actual data provided by the RERP’s PIUs and applying assumptions that were presented in the table above. The following are the main elements of the analysis: • Number of transactions projected at baseline were lower than actual figures: 114,000 vs 121,049 transactions. • The average price of property projected at baseline was also lower than the observed price: €41,686 versus €45,250. • A key parameter for the CBA is the real estate transactions annual growth rate: the projected rate at baseline was higher than the actual rate: 5% vs 3.83% (RS=2.0% and FBH=5.7%). • Two key assumptions from the ex-ante analysis were changed due to access to new information: 1) growth rate of transactions in areas not covered by the project is 3.22% (RS=1.6% and FBH=4.8%) instead of 2.5%, and 2) the number of transactions in areas covered or uncovered by the project stabilizes at 177,000 per annum. • Another key parameter is the growth rate in average value (property prices) per transaction. Data provided by the FBH seems to indicate that prices in areas covered by the project increased more (2.97% per annum) than in areas not intervened (0.12% per annum). However, the FBH study is based on a small sample and did not aimed to measure the impact of the project, thus diverging growth rates can also be attributed to other parameters besides the RERP. Nonetheless, taking advantage of this study’s data plus data provided by the RS (1.26% average growth rate per annum for project covered and uncovered areas) it was estimated an overall annual growth rate of property values of 2.15% and 0.69% for areas were the RERP was implemented versus areas where it was not, respectively. • The ex-post CBA used the same discount rate, the same period of analysis, and the same assumptions with respect to the timing of the economic benefits. • To estimate the ERR, the annual costs are equal to the Project’s disbursement payments. 11. As a result, economic benefits were estimated to be €297 million and they were calculated as the increase in property values and number of market transactions derived from investments in cadastre and registration systems that improve access to finance and other investments in the housing market. The project cost is €30.6 million (equivalent to a present value of €19.8 million) and includes all the incurred and projected cost up to the closing of the Project. Therefore, the RERP is estimated to provide BH with a net benefit of €279.7 million, which is equivalent to an Economic IRR of 127% (using a 12% discount rate). Furthermore, 4% of the total incremental market turnover will be received by the government as additional tax revenue through the property transfer tax. This amount is equivalent to a present value of €36 million. 12. The Project’s ex-post economic benefits estimation is smaller than that expected at appraisal. This is due to smaller than predicted annual growth rate in transactions and value of properties in areas where the Project was implemented. Nevertheless, the benefits are still so substantial that they outweigh the project costs (benefit cost ratio) almost 15 times. Page 49 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) CBA Calculations Market Transactions Without Market Transactions with Project Project Market Turnover Market Market Coverag Conversio Net Project Turnover Turnover e Rate Attributabl n of Benefit Incrementa Disbursement Average or Total Averag or Total by the e to the Turnover s in l Value s (Million Number Value Value of Number e Value Value of Project Project into (Million (Million EUR) (EUR) All Trnscs (EUR) All Trnscs (%) (Million Project EUR) EUR) Yea (Million (Million EUR) (Million r EUR) EUR) EUR) 1 121,049 45,249 5,477 121,049 45,249 5,477 10% - 0.00 0.00 4.77 -4.77 2 124,945 45,559 5,692 125,681 46,207 5,807 10% 115 11.49 3.83 1.38 2.45 3 128,966 45,872 5,916 130,491 47,185 6,157 11% 241 26.54 8.85 4.23 4.62 4 133,116 46,187 6,148 135,484 48,184 6,528 13% 380 49.40 16.47 5.36 11.10 5 137,400 46,504 6,390 140,669 49,204 6,921 14% 532 74.46 24.82 4.65 20.17 6 141,822 46,823 6,641 146,051 50,246 7,339 14% 698 97.72 32.57 6.31 26.26 7 146,387 47,144 6,901 151,640 51,310 7,781 14% 879 123.11 41.04 0.00 41.04 8 151,098 47,468 7,172 157,443 52,396 8,249 14% 1,077 150.80 50.27 0.00 50.27 9 155,961 47,793 7,454 163,468 53,505 8,746 14% 1,293 180.96 60.32 0.00 60.32 10 160,980 48,121 7,747 169,723 54,638 9,273 14% 1,527 213.76 71.25 0.00 71.25 11 166,161 48,452 8,051 176,218 55,795 9,832 14% 1,781 249.39 83.13 0.00 83.13 12 171,508 48,784 8,367 177,000 56,976 10,085 14% 1,718 240.51 80.17 0.00 80.17 13 177,000 49,119 8,694 177,000 58,183 10,298 14% 1,604 224.60 74.87 0.00 74.87 14 177,000 49,456 8,754 177,000 59,414 10,516 14% 1,763 246.77 82.26 0.00 82.26 15 177,000 49,795 8,814 177,000 60,672 10,739 14% 1,925 269.54 89.85 0.00 89.85 16 177,000 50,137 8,874 177,000 61,957 10,966 14% 2,092 292.90 97.63 0.00 97.63 17 177,000 50,481 8,935 177,000 63,269 11,199 14% 2,263 316.88 105.63 0.00 105.63 18 177,000 50,827 8,996 177,000 64,000 11,328 14% 2,332 326.42 108.81 0.00 108.81 19 177,000 51,176 9,058 177,000 64,000 11,328 14% 2,270 317.77 105.92 0.00 105.92 Page 50 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 20 177,000 51,527 9,120 177,000 64,000 11,328 14% 2,208 309.07 103.02 0.00 103.02 PV 297.28 NPV 279.7 Page 51 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS Summary of Borrower ICR Reports Republika Srpska 1. The ICR Report for the RS, covering the period September 2013 to November 2018, was provided to the Bank in December 2018. The report runs to 27 pages and is summarized here. Executive summary 2. The ICR report gives details of the results up to November 30, 2018, and although the Project has 13 months to run, it appears likely that the Project will meet the PDO. Project Context and Development Objective 3. The Project to support a sustainable real estate registration system, based on the REC, was intended to be financially and institutionally viable, facilitate investment and good governance, and provide base data for land administration and spatial data infrastructure. The Project consisted of three components A, B and C. Component A was to establish an up-to-date and integrated database of real estate and to do so in a way that ensures equal treatment for all citizens. Component B was to improve working and customer conditions, create a digital archive, equip offices and support modern land administration through digital data and its delivery. Component C was to promote sustainability, through training, legislative development and greater client focus. Project status and changes during implementation 4. There was a restructure in 2016 that made seven changes, including to the number of CMs to be established, plus an extension in 2017. The Project is on track to meet its targets, including 24 intermediate results indicators. Some targets have already been exceeded, such as CMs with established REC. The only challenge is the target of 80 per cent of maps in digital form. 3.1 Component A – Real Estate Registration Data Development 5. The goal of this component is to harmonize the land register and cadastre data on land, buildings and rights based on the situation on the ground and thus establish an up-to-date and unique record in an integrated database, with both graphical and legal data. A.1 Public awareness, vulnerabilities and social monitoring A.1.1 Vulnerability mapping and social monitoring 6. So as to include socially vulnerable groups in the REC creation process and allow them to protect their rights, mapping and monitoring was included. Mapping covered entire municipalities, not simply CMs, in some 45 cities/municipalities (1349 CMs). The activities are on-going and involve working with local citizens and associations to inform them of REC creation activities and in conjunction with other ministries, including the Ministry of Health and Page 52 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Social Welfare. All staff and contractors are trained in vulnerability mapping and social monitoring. Reports on mapping form the basis for improved procedures to ensure all people can participate. A.1.2 Public awareness campaign (PAC) 7. The PAC started on October 9, 2015 and ran until May 30, 2016, with the aim of reaching every citizen to explain the importance of REC creation. Media included brochures, leaflets, TV and radio broadcasts, posters, newspaper advertising, billboards, portals and Facebook and Google advertising. A second PAC commenced on November 23, 2018. 8. Women’s rights were targeted under the PAC and several round tables were held on gender equality, with Swedish support. A promotional film on gender equality was produced. In October 2018, RS GA adopted the Gender Equality and Non-discrimination Policy and gender equality is integrated in all policies, strategies and activities of RS GA. These activities have helped to raise the percentage of female beneficiaries to 32 per cent, which shows a positive trend over 2017. In urban areas, the percentage is higher at 34.5. Also, RS GA tracks the gender of those involved in sale contracts as part of the Sales Price Register. A.2 Real estate registration, data updating, harmonization and registration A.2.3 Development of a new coordinates reference system 9. A new coordinate system, which is consistent with the latest European standards, is being created. Data gathering and calculations will permit the current, outdated Guas-Kruger projection to be replaced with one that permits three- dimensional position and the establishment of spatial data infrastructure. The continuous operating reference system will be linked to European Terrestrial Reference System (ETRS89). Some 1758 points have been identified by eight survey companies for Global Navigation Satellite System (GNSS) measurements. 10. The consultants’ report on transformation has been produced and two software modules developed, and these will support the transformation between the existing and new reference systems. A three-year plan for densification of the geodetic points is planned to permit the ETRS89 to be used. There have been some delays due to procurement objections, so RS GA will commit greater efforts to progress in the coming period. A.2.4 REC establishment 11. The aim of this subcomponent is to establish the REC in urban and semi-urban areas in accordance with the Law on Survey and Cadastre, as amended, and its bylaws. 12. In April and May 2016, RS GA assessed the time and cost involved in REC creation and determined that the amount allocated had been underestimated. In consultation with the Bank, RS GA revised its plan to cover 190 CMs using Project funds, covering 33 municipalities, 503,000 parcels and 550,000 beneficiaries. To October 31, 2018, some 250 CMs in 29 municipalities have been completed, of which the Project funded work in 165 CMs in 20 municipalities. Work on 16 further CMs is underway. 13. The figure of 250 CMs REC creation, using both RS GA and Project funds, at October 31, 2018 represents 132 per cent of the target. The area of 432,400 hectares is 130 per cent of the target area, and the number of parcels (600,855) Page 53 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) is 120 per cent of the planned target. 14. RS GA has continuously improved the conditions for REC creation, particularly through improving the legal framework (including the Rulebook) to make it faster and simpler and maximizing the productivity of consultants through better supervision and use of results based contracts. Changes to the Rulebook included elimination of public display in a variety of cases where it was safe to do so. This results in a doubling of the number of cases that can be processed. 15. The government of RS has been supportive of law reform, having agreed to two sets of changes that introduced a range of improvements. 16. Some 827 consultants have been engaged over the course of the REC creation work so far. RS GA provides support and supervision to the consultants, and introduced coordinators to work closely with them. Certain problems still exist with the REC creation work, but the RS GA team is working on these issues. RS GA overcome problems of logistics by renting offices for the commissions for the public display period. At present, there are offices rented in 14 municipalities. A.3 Vectorization and cadastral database creation 17. Cadastral maps are to be vectorized under this sub-component, together data capture for the new REC database, with some 70 per cent of the RS covered already. New procedures will streamline the process. Due to the reallocation of funds from this activity to REC creation, RS GA will continue with the vectorization work using its own funds, with a target of 80 per cent coverage by the end of the Project. Work is already underway on improved methodologies, procedures and modality. A.4 Study – definition of optimal model for REC establishment 18. The RS GA quality control unit collected many cases for REC creation and developed streamlined procedures for use around the entity. These are reflected in the Rulebook and the amendments to the legislation. In early 2018 a document on the rules and procedures for REC creation was issued, setting out the various steps as well as the obligations of land owners and others. Funds allocated from the Project for this activity were reallocated to REC creation. 3.2 Component B – Real Estate Registration Infrastructure Development B.1 Working conditions improvement 19. Many local offices suffer from poor working conditions, which affect staff morale and customer service. With the merging of the MoJ land registers and the RS GA’s cadastre, special attention was required to merge these functions operationally. Investment in IT is also required to improve performance and increase transparency. Further, digital data will support the establishment of a spatial data infrastructure in accordance with the European Union’s INSPIRE directive. B.1.1 Office purchase and modernization 20. Improved working conditions are necessary to improve capabilities of local offices, conditions for customers and transparency. A large number of offices were planned to be purchased using Project funds, as listed in the PAD. Up to Page 54 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) June 2017, RS GA bought six new offices and renovated three. However, with the restructure, the purchase of eight other offices was cancelled and the funds allocated to REC creation, but the RS GA continued to buy local offices with its own funds. 21. RS GA will continue to use its funds to improve working conditions. Reconstruction work is continuing, including work that was completed at Banja Luka in October 2018 to serve high customer demand with 12 desks (instead of five before). This will greatly improve the customer experience. 22. Furniture has been procured for local offices and REC commissions in 15 municipalities. B.1.2 Vehicles 23. A range of vehicles has been procured to assist with REC creation and RS GA’s work, including some 18 terrain vehicles. B.1.3 Surveying technology improvement 24. Modern survey equipment is being provided to those REC offices that do not have adequate equipment, which is particularly important for REC creation fieldwork. At the start of the Project, 14 licenses for SRPOS – GNSS reference network were acquired, which permit the undisturbed work of the SRPOS control center and network. Further, 14 total stations and 17 GNSS rovers were acquired in 2014. The supplier provided training. The equipment has been distributed between RS GA’s headquarters and its busiest offices. B.2 IT – strategy implementation B.2.1 ICT technical sustainability 25. This sub-component began with procurement of essential IT equipment for the REC commissions. Some 150 desktop and 20 notebook computers, plus printers and scanners were acquired. Later, another 100 computers, 12 notebooks and printers and scanners were bought. 26. RS GA is in the process of connecting all offices to the headquarters as an essential step in developing further IT services. The RS GA central data center was completely redesigned to facilitate improved services. Further, there was a major acquisition of communications equipment and lines, and RS GA managed to connect all 63 local offices so their data are now centrally stored. This allows the eKataster, address register and sales price register to operate with up-to- date information. 27. Sustainability of the IT system and software shortcomings are outstanding concerns. The contract with the software provider (E-TerraSoft) was annulled and alternatives are under consideration. The new IT Strategy will guide future IT development, and work on this strategy commenced in January 2019 with support of consultants. B.2.2 ICT further development and e-services 28. Due to cancellation of the contract with its software vendor, TeraSoft, RS GA is looking at ways to replace the software, develop e-services and publish property data online. The eKatastar application for public display has been Page 55 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) functional since October 2018 and permits data to be search based on parcel number, address and owner. This has greatly increased transparency. 29. RS GA is working on linking the REC data with other key registers, such as the personal identification register, address register and company register. An agreement with the Ministry of Interior was signed in August 2018 to facilitate the exchange of data. Other agreements have also been signed to facilitate electronic exchange of data. 30. Other completed software includes an application for public display of land registry data and book of deposited contracts data (for Banja Luka). Further, two consultants have been engaged since October 2018 to support the establishment of spatial data infrastructure and the maintenance of geospatial services throughout development and improvement of the RS GA Geoportal. B.3 Cadastral and land book scanning and indexing for digital archive 31. Activities under this sub-component started in January 2016 with a pilot in Laktasi office supported by Swedish technical assistance. Norwegian assistance is also being provided to this activity, with provision of consultants for the development of software to cover all the different types of documents (workflow and metadata capture). Work on developing the digital archive IT system began on March 13, 2017 and was successfully concluded in December 2017. 32. Norwegian assistance is continuing up to October 2020, including the roll out and implementation of the digital archive IT system into all the RS GA offices. Currently, after equipment was purchased with funds from Sweden, Norway, the Project and RS GA, digital archive activities are underway in seven offices, with two further offices in preparation. 3.3 Component C – Policy and Institutional Development, and Project Management C.1 Policy support C.1.1 Studies, by-laws and laws 33. Although all necessary laws and bylaws were in place at the start of the Project, as expected, experience has resulted in changes and improvements to the legislation being required, particularly in speeding up the process of REC creation. Changes and amendments to the rulebook for establishing the REC were introduced to streamline, facilitate and speed up the procedures. Other shortcomings had to be resolved by amendments to the Law on Survey and Cadastre, which were adopted by the National Assembly in October 2016 and commenced on December 30, 2016. 34. Improving the legal framework is an on-going task, with amendments to various other laws also being investigated. C.2.3 Capacity building and training 35. In accordance with the annual training plans, a range of training for RS GA staff, consultants and others has been provided each year. Training has been a focus so as to raise skills and awareness, with training also covering social inclusion of vulnerable people. In 2013, training in nine formal workshops was provided to 536 RS GA staff and consultants from 45 offices, which covered the majority of offices. In 2014, training was extended to on the job training in REC establishment and also to introduce the streamlined procedures, covering eight two-day sessions around the RS, which covered 319 participants from 60 offices. Page 56 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 36. Numerous topics were covered in training in 2015 as well as training for supervisors. In 2016, training was provided for staff and newly engaged consultants. Seminars on innovations were also conducted around the RS on recent reforms and innovations. Technical training for equipment use has also been a focus in recent years, with 1679 participants involved. The MoJ of the RS has organized trainings for the judiciary and those involved in land registration related to changes, as well as for notaries, lawyers, surveyors and other stakeholders. The MoJ has trained 1778 people at 149 seminars since 2016. All allocated Project funds have been expended by the MoJ, and it does not plan further sessions. C.3 Operational support C.3.1 Customer satisfaction studies 37. The first customer satisfaction survey was conducted in early 2016 and focused on quality, efficiency and effectiveness of RS GA’s services and customers’ knowledge and perceptions of RS GA’s services. The report concluded that there was a high level of satisfaction and awareness of RS GA’s work, although customers were less aware about the processes involved. Citizens reported that they felt advantaged by the reforms. The second survey is planned for 2019. C.3.2 Impact evaluation 38. The first IE was conducted in 2014 with the final report delivered in July 2015. Discussions are underway on the second IE, which is planned to be conducted by mid-2019. C.3.3 Project management 39. The PIU has functioned on time and appropriately, with a manager and a deputy who are permanent RS GA employees plus consultants in procurement, financial management, M&E and administration. RS GA employees provide support as needed. 4. Information on projects support RERP 40. There are two twinning projects: Swedish funded Capacity Building for Improvement of Land Administration and Procedures in BiH – CILAP; and Norwegian funded Public Services for the Real Estate Market and European Integration. The Project’s implementation does not depend on these projects but they have contributed to achieving the Project’s objectives. Another Swedish funded project, Infrastructure for Spatial Information in the region of Western Balkan (IMPULS) commenced in September 2014 and it supports work within the context of the INSPIRE Directive. 4.1 Twinning Project with Lantmateriet, Sweden 41. The CILAP project is a long-term program that supports the Project, which is more technically focused, so the CILAP project has a greater focus on institutional aspects, such as capacity strengthening, knowledge transfer and human resources. It started in February 2013 and lasted to March 2016 (budget of 28.25 million Swedish Krona). A second phase runs from April 2016 to December 2019 and has the objective of establishing efficient, secure and reliable land administration in the country. Areas of focus include the address register, sales price register, geodetic infrastructure, IT and geoinformatic system and the digital archive. Page 57 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 42. In addition, the CILAP project has helped with the development of policies, strategies, gender awareness, reference system and levelling network, public display and REC creation, and interconnection of key registers. The CILAP project’s support has contributed to the achievement of various Project indicators and its implementation. 4.2 Twinning Project with Statens Kartverk, Norway 43. The project supports RS GA’s capacity to prepare, store and disseminate geographic information. The first phase ran from April 2013 to the end of 2017 (9.6 million Norwegian Krona) and a second phase started in April 2018 (6 million Norwegian Krona) and will run until October 2020. The project has supported development of the IT system for the digital archive and procurement of equipment for the digital archive offices. The second phase will roll out the digital archive to selected offices, recognize and stabilize the NVT3 working benchmarks and produce gravity measurements on NVT3. There is also a new regional project planned to initiate and support cooperation in geodetic measurement and determination of high precision geoid for the Western Balkans countries. 5. Lessons learned and recommendations 44. The Project has helped RS GA to significantly improve performance, streamline procedures and strengthen the organization. 45. REC creation has been the main task, with much effort on improving the legal framework to facilitate and speed up activities. Many consultants have been engaged on the commissions and they require much training and supervision. There is still work to do to resolve complaints, which can slow down the process of completion by up to two years. 46. Permanent investments in IT equipment, office purchase and modernization, vehicles and survey equipment have resulted in an enhancement of RS GA’s capacity to perform its duties and satisfy customers. 47. RS GA will meet the Project’s goals, the most important of which are sustainability and transparency. 48. IT software issues remain a concern and can hamper performance. Management of RS GA is actively involved in addressing this concern. However, the issue of data transparency has been resolved through the successful deployment of appropriate software. Page 58 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Federation of Bosnia and Herzegovina 49. The ICR Report for the FBH was provided to the Bank in December 2018. The report runs to 54 pages plus six annexes, and it is summarized here (various graphs and annexes not included). 1. Introduction 50. Delivering reliable and secure property rights and effective land administration services present major challenges in every country. Work is required to provide a solid legislative basis, firm institutional arrangements, and quality data and services. Since 2007, BH has been committed to this path. In the FBH, a strategic approach to create a common long- term framework has been implemented, based on harmonized land registry and cadastre data. The results will be improved security, better business environment and competitiveness, and reliable data for decision-makers. 2. Land Administration System in FBH 2.1 Institutional arrangements 51. The four major institutions involved in the Project are the 1) FBH GA; 2) municipal cadastre offices; 3) FMoJ and municipal courts (land registry offices); and 4) municipal departments of physical and urban planning and the Federal Ministry of Physical Planning. Each has its own data, duties and competencies. 2.2 Vision of the land administration sector in the FBH 52. The vision for land administration in the FBH is development of an efficient, secure and sustainable property registration system that provides legal security, based on reliable registration of rights and up-to-date technical data. The basis for the vision is digital data that are easily accessible, accurate and reliable, and consistency of data held by all institutions. Numerous uses for this data are envisaged, including planning, land protection, taxation, land reform, anti- corruption initiatives and gender equality. 3. Real Estate Registration project in the FBH 53. The Project uses both loan and government funds and is a follow up to the LRP. The loan amount is SDR 11.6 million. The Project and the LRP are part of the program in the FBH towards a well-functioning land administration system. A priority is to harmonize real estate data between the cadastre and land registry offices, with a focus on urban areas. The work is based on a methodology tested under the LRP. Over 900,000 owners in 243 CMs will benefit. The outcomes will provide numerous benefits, including an improved business climate and competitiveness. The Project is in accordance with the CPF’s pillar number 1 Competitiveness and assists with improved efficiency in the public service. 3.1 Legal basis and institutional arrangements for implementation 54. The Project is based on the government’s decision of August 7, 2013 and the Project agreements. The Project is administered by the FBH GA and the FMoJ, supported by a PIU. The mid-term review was completed in June 2016 and concluded that extra time would be required for data harmonization. The restructure followed, amending the results framework and extending the Project by 18 months. Page 59 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 3.2 Project development objective and Project beneficiaries 55. The PDO is as stated in the PAD, as are the Project beneficiaries. Data are produced on a gender disaggregated basis, and there have been various activities to inform women of their rights. The gender data are being monitored on a quarterly basis and show that 38.4 per cent of land owners are women, which shows an improvement over the start of the Project from 37.0 per cent. The key PDO outcome indicators and other indicators are as described in the PAD and restructuring paper. Some 59 per cent of indicators have already been achieved, while the remaining 41 per cent are on track to be achieved. Of Project funds, 67 per cent has been disbursed. Over 900,000 owners will have their properties registered without additional registration cost. 3.3 Project components To achieve the PDO, there are three components, as detailed in the PAD. 3.4 Project management and key stakeholders 56. Land administration is focused on the user, as described in the service standards (adopted in 2010). The government is committed to the Project, as demonstrated by the allocation of funds. The FBH GA has been leading implementation and providing support to the FMoJ, across 79 cadastre and 38 land registry offices. Communication with all stakeholders has been a key element of the work, using numerous means. Customer surveys demonstrate a high degree of user satisfaction. 4. Achieved Objectives, Results and Lessons Learned 57. The Project has achieved significant results with benefits to citizens and investors, and this has been recognized by the Bank, which has made video stories about the Project. There are three components, with sub-components and various outputs and targets for each. 4.1 Component A – Real Estate Registration Data Development Sub-component A.1 – Public awareness, vulnerable groups and social monitoring 58. Various methods were used to communicate with stakeholders and the public on the activities and objectives of land administration reform, including website, brochures, leaflets and information campaigns and awareness raising. 59. Vulnerability mapping was conducted in municipalities where harmonization was underway by collecting information from government bodies and verification of information in the field (local organizations, etc.). It was conducted prior to the commencement of work in all 55 municipalities involved in harmonization, which covered 255 CMs. 60. Social monitoring was conducted in parallel with data harmonization work to monitor participation of vulnerable groups. Training was held for staff and contractors to facilitate the inclusion of vulnerable people. Information activities were undertaken, including publication of 26,130 leaflets and also posters and audio leaflets. The number of people who identified as vulnerable was small and there were no appeals against decisions involving them. Social monitoring reports are completed for 18 municipalities (60 CMs) and are being completed for numerous other municipalities. Page 60 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 61. There has been a campaign for raising awareness of data harmonization activities to encourage citizens to engage, with local public information campaigns being conducted for the actual work. Such campaigns have been conducted in 205 CMs, which is 80 per cent of the target number of CMs. Media in the first contract included almost 700 radio broadcasts plus 850 broadcasts and 760,175 web banners. In the second contract, a 30 second radio jingle of general information was broadcast 952 times on several radio stations and 1,320 times regarding the announcement of work commencing. Further, some 100,000 leaflets on gender equality have been distributed as well as other leaflets and posters, using CILAP project funds. Other brochures have also been printed and distributed. The key lesson learned is that proactive communications is essential for support and awareness of the population. Sub-component A.2 – Real estate registration data updating, harmonization and registration 62. Data harmonization between the cadastre and land registry records for 255 CMs is to be conducted under this sub- component, which is by 12 CMs more than the end target. There are two main starting points depending on the situation in each locality, so different approaches are required. In both instances, the work is well progressed in the 55 municipalities where the CMs are located and which are covered by 26 courts. Some 620,000 cases are to be solved, affecting 850,000 parcels and 135,000 apartments. Appeals are currently running at 0.07 per cent of the 362,975 cases that have been solved to date. 63. Ultimately, it is expected that 850,000 owners will benefit. Currently 622,000 owners are already benefiting from greater legal certainty. There are 1.82 million electronic land registry folios, with some 51.1 per cent benefiting from the new survey (as against 30 per cent at the start of the Project). 64. Temporary land registry clerks (law graduates) have been recruited to help with the work. To date, recruitment procedures have been conducted and altogether 172 contracts have been signed with law graduates. Having undergone adequate training and education, 155 of them have also passed exam for Land registry clerks. Project funds have also been used for land registry office supplies. Advertisements announcing the establishment and replacement of the land registry data have been published for 207 CMs, which is 81 per cent of the target of 255. 65. Key lessons learned are that close monitoring of work against capacity is required to avoid backlogs, and close collaboration with land registry clerks facilitated their acceptance of temporary clerks as team members, which resulted in greater efficiencies and quality of outputs. Sub-component A.3 – Vectorization and establishing the cadastre database 66. To create the digital cadastral database, vectorization was conducted in accordance with the Rulebook and Cadastre Data Model. Digital data will improve efficiency and services of cadastral offices. FBH GA has sought to complete all graphical data into the new system through two initiatives – one at central and one at local level. Using Project and municipalities’ funds, data for some 189,120 parcels covering 149,642 hectares have been vectorized, and FBH GA performed quality control before accepting. A further procurement of 45,292 parcels (44,026 hectares) is on-going. In total, using Bank and government funds, data for some 1.6 million hectares or 61.6 per cent of the total area of FBH has been vectorized, which exceeds the Project target for A.3 by 21.6 per cent. Sub-component A.4 – Quality control Page 61 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 67. Some 19 individual consultants were engaged as project managers to monitor, coordinate and improve the work on harmonization in particular locations. 4.2 Component B – Real Estate Registration Infrastructure Development Sub-component B.1 – Working conditions improvement 68. Activities under this sub-component to improve the infrastructure and enhance working conditions in cadastre and land registry offices improves the quality of services provided to clients, in accordance with the adopted service standards in the land administration sector, as well as the conditions for employees. The activities started under the LRP, including separate reception and working areas, wheel chair access, and skills and communications training for staff. 69. Some 29 land registry and cadastral offices have been fully renovated and equipped with furniture under the LRP, and since then (using both Project and budget funds), a further 21 offices have been similarly enhanced (14 cadastre, five land registry and the FBH GA premises). The new FBH GA building was also established. Additional furniture has also been provided to some offices. 70. Renovations have greatly improved conditions and efficiency, and reduced corruption opportunities. They have improved the citizens’ perception of the offices. All work has been completed, and the target for B.1 has been exceeded by two per cent. 71. Other procurements include three vehicles geodetic instruments (46 GNSS Rovers and 15 total stations). A further procurement for equipment is on-going. Sub-component B.2 – IT strategy implementation 72. The ICT strategy was produced under the LRP and envisages an integrated system. The strategy for ICT for the land registry and cadastre for 2018-2028 [now 2019-2029 per advice of FBH GA] is currently being drafted and should be adopted in early 2019, and it will facilitate activities to enhance the use of ICT in land administration. 73. Under the Project, there has been procurement of IT equipment, including seven servers, 340 work stations, 9 laptops, 234 printers, 92 A4 scanners and a variety of other items. One Oracle licenses has also been procured, as well as leasing of internet lines to link the centralized system at the FMoJ to land registry offices. Maintenance of the e-Grunt software included development of seven new versions and training, using Project funds up to 2018 and possibly 2019. Various applications are available to registry staff and clients via the internet. Data for 2,346 CMs are included in the database. 74. The cadastral software is hosted by the FBH GA, with online access for all 79 cadastral offices. Some 1,913 CMs have data in the system, which is updated weekly. Numerous services are available to the public and registered users. FBH GA also works with other government agencies to share information. 75. The address register is being developed with CILAP project support in coordination with local municipalities, which are responsible for the data. Agreements with municipalities are progressively being signed. FBH GA is also closely involved in the wider e-government program, including sharing of personal identification information. A law on e- signature was recently submitted to the FBH parliament, which should address a gap in the legal framework. Page 62 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) Sub-component B.3 – Data scanning and indexing for the purpose of establishing digital archives 76. Scanning of incoming cadastral documents is operational in all 79 cadastral offices and will be integrated in the digital archive later, in accordance with the strategy on ICT for the land registry and cadastre 2018-2028. 77. Under this sub-component, digitizing of all remaining land registry folios in four courts was completed, as well as the sub-folios from the Book of Deposited Contracts in Mostar. In May 2018, a contract to scan land books in three courts was signed and work is in the final stages. 78. Scanning of cadastral documents is also occurring, either by the municipality itself (using equipment provided by the Project) or by a service provider. Some 33 municipalities will use contractors’ services. Support to produce the necessary software was provided with Norwegian assistance and a scanning center using Swedish, Norwegian and Project funds has been established at FBH GA headquarters. Further foreign support is expected to extend the digital archive. 4.3 Component C – Policy and Institutional Development, and Project Management 79. The objective of this component is to improve sustainability with a focus on institutional development and capacity building, primarily through training of land sector staff, but also includes policy, legislative and operational support. The LRP supported training and this is continuing under the Project, using seminars and workshops and covering law, management, ICT, cadastre, spatial planning, etc. in accordance with the annual training plan. This component also covers M&E, with the purpose of not only showing the effectives of project activities but also to evaluate them so that the services can become more effective and sustainable. Sub-component C.1 – Policy and strategy support 80. There was one activity under this sub-component: preparation of the Handbook of Best Practices in the Work of LR Offices in the Process of Replacement or Establishment of the Land Registry. CILAP project funds were used to finance the printing. Sub-component C.2 – Institutional development 81. As required in the Financing Agreement, a Strategy for the Land Administration Sector in the FBH for the Period of 2016-2020 was adopted by the FBH GA and FMoJ. It provides a framework for adoption of business plans and also supports legal and institutional reform and mobilization of resources. It builds on activities that have been underway for many years. With CILAP project technical support, a strategic business plan for the same period for the FBH GA was also prepared. The aims are to improve the quality, efficacy and effectiveness of property registration services, employing transparency, improved procedures and supporting strategies. Good governance is at the core. 82. Two general information campaigns of two months each were implemented to inform the public and raise awareness of real estate registration. The first was completed in October 2015 and the second in October 2017, and they included press conferences and numerous TV and radio broadcasts, plus newspaper articles and web banners. 83. Training of employees and others was conducted in accordance with annual training plans. In total, some 99 decentralized trainings (workshops, seminar) for 2,674 participants from land registry offices, cadastral departments, spatial planning departments, municipalities and courts were provided. This exceeds the target for training by 4 per cent. Page 63 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) All participants were requested to give feedback, which was used to improve future training. Sub-component C.3 – Operational support 84. Sub-component C.3 included the customer satisfaction survey, IE and PIU support. The first customer survey was conducted in the second half of 2015, with a follow up planned for 2019. The findings show high levels of satisfaction of natural entities (81.7%) but somewhat lower for professionals (75%) at land registry offices but higher at cadastral departments (81.3%). Both groups rated the work of real estate registration as having a significantly positive impact on the quality of services. Many also believed that the contribution of the Project was high. Satisfaction levels were reasonably high. 85. The IE baseline data for 1,110 households was gathered in 2014 and the report produced in February 2015. The second IE is planned for 2019. A range of social, economic and demographic data was collected, with a focus on acquisition, financing and documentation of real estate. 86. The PIU consists of three civil servants and six consultants, with translators hired as needed. Finance software supports the financial management functions. 5. Project Monitoring and Evaluation System 87. An M&E system is essential and covers various activities, with the aim of enabling managers and stakeholders to identify issues that require special attention. As there was a range of stakeholders in the Project, various matters needed to be investigated and reported. The PAD’s results framework provided a solid starting point, but an extensive range of other indicators were introduced. Software was further developed to assist data capture. 88. Key lessons learned from the M&E experience to date have been: 1) M&E is a key management tool, particularly where activities are lagging; 2) PDO and performance indicators should be well defined during the preparatory phase in order to have specific, measurable, attributable, realistic and targeted indicators; and 3) while most of the Project’s indicators were well defined, some would have benefited from clearer description and targets. 6. Procurement Management 89. Based on the annual work plan, an annual procurement plan was produced, which utilized the various methods of procurement under Bank projects with appropriate dates. Some 395 contracts have been signed, with 227 finalized. Some 75 per cent of contracts are with individual consultants. Over half the funds disbursed have been through the non- competitive bidding process. No mis-procurement has been reported. 90. Key lessons learned from the procurement are: 1) good communications with the Bank allowed “no objections” to be obtained in a timely manner; 2) transparency of process is essential to ensure competitiveness and maximize the number of bids, thus ensuring low prices. Good internal filing and documentation systems, plus quality control mechanisms are important and assist with efficient auditing and auditing outcomes. 7. Financial Management 91. The PIU has an internal financial management capacity which has been satisfactory to the Bank. There are various Page 64 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) accounts for different purposes and accounting software is used, which allows monitoring and accurate reporting. The Project reports to the FBH government Ministry of Finance as well as the Bank. As at October 31, 2018, over EUR 11 million of Project funds had been disbursed, primarily for consultant services. Annual audits have been satisfactory. 8. Challenges during the Implementation of the Project and Future Plans 92. With Bank support, the institutions have developed further in performance to support their customers. FBH GA has taken ownership and made many efforts to implement the Project, using the PIU for support. There have been a variety of challenges, as follows: i) The main challenge related to data harmonization between the land register and cadastre, which was time consuming and involved multiple parties. Efforts to coordinate between the municipal cadastre offices, municipal courts and contractors have been successful. ii) As a result of work required to register properties and an increase of transactions, there was a risk of backlogs arising in the courts. This potential problem has been managed through an appropriate process and good communications. iii) The institutional arrangements in FBH are particularly complex, but FBH GA has managed to achieve cooperation with other institutions to support e-service introduction. Various government agencies had to cooperate to deliver e- services that shows up-to-date personal and street address data. iv) Additional attention was required to establish a permanent ICT structure with the FMoJ that could manage the registry software (e-Grunt). Due to staff restrictions, this had not been possible, so a consultant was engaged to provide support. Further, the FMoJ has had difficulties obtaining funds to maintain e-Grunt. However, the government approved the FBH GA financing the maintenance of e-Grunt through its budget. v) In late 2017, there was concern that real estate registration could result in some owners living outside the FBH losing their land. A case was stated to the Constitutional Court of BH, but it ruled that there was no issue, so activities on data harmonization have continued in compliance with existing laws. vi) Up-to-date, harmonized real estate data provide decision-makers with accurate and complete information. The government has sought further cooperation with the Bank to continue the successful partnership on addressing real estate issues. The Bank’s wide experience has been recognized and appreciated, and the Bank team has good relationships with the Bosnian side. vii) Due to time and financial constraints, data harmonization is being restricted to priority urban areas. Government funds are insufficient to expand, so support from the Bank is still very much needed. The AF will allow for the continuation of activities, thus providing benefits to a greater number of people. 93. The government sought further funds in mid 2018 and the Bank has agreed. The second phase of the Project will continue the work currently underway, and will aim to improve the quality efficiency and effectiveness of real estate registration. The funding will cover an additional 100 urban CMs and will continue work on improving the quality of services provided, including through introduction of modern systems and technologies. 9. Attachments Page 65 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 94. Six attachments provide: 1) harmonization capacity index; 2) Results Framework and Monitoring; 3) Procurement Plan; 4) Renovation Works and Refurbishment of Cadastre office in Gradacac, Land Registry office in Capljina and FBH GA headquarters. Comments on the Bank’s draft ICR 95. The draft ICR was submitted to the geodetic authorities in both entities for their comments. Minor and editorial changes were adopted and reflected in the final version of the ICR, but comments on substance are reproduced here. 96. Per paragraph 19 of the ICR: Please be advised that there was no decrease in the FBH in the number of CMs nor the number of beneficiaries. Note also that the core land-related indicators are not included in the formal restructure document. 97. Per paragraph 53 of the ICR: Delivery of quality services without discrimination is tested through Social Monitoring activities too. Social Monitoring Data shows that the services are delivered without any discrimination, and no discrimination was reported in the FBH 2015 Customer satisfaction survey (n=625). The 2015 FBH Customer Satisfaction Survey data shows that 35.3 per cent of individual customers in land registry offices reported that their request was completed in one day, for 9.8 per cent it took two to three days and for 15.7 per cent it took seven days to have their request completed. 51.3 per cent of individual customers in cadaster offices reported that their request was completed in one day, for 12.8 per cent it took two to three days and for 7.7 per cent it took seven days to have their request completed. Furthermore, waiting time in the reception area was less than half an hour for 72 per cent of customers (individual customers and professional customers in land registry and in cadaster offices). 98. Per paragraph 57 of the ICR: The assessment should take into account that end targets for some of the indicators, e.g. number of harmonized CMs, will be actually exceeded. 99. Per paragraph 62 of the ICR: The reason for the conservative approach is applied in rating of the RERP should be explained. 100. Per paragraph 67 of the ICR: A more accurate statement of the situation would be: “Harmonization of data is carried out by the cadaster and land registry offices ex officio (not by the individual requests of parties), so therefore the parties are exempt from the payment of court fees for all registrations in land registers in the process of data harmonization in the FBH.” 101. Per paragraph 82 of the ICR: Please consider altering this rating to “Substantial” as M&E performance has been rather effective and efficient with only some weaknesses in a few areas and with still significant impact on the Project. Our standing is that rating of Modest performance is far away from being with significant weaknesses in a number of areas and with limited impact on the Project (See the IEG WB Project Performance Ratings - Codebook September 2015). 102. We suggest that some of the identified shortcomings be put in a broader picture in light of delayed effectiveness of the Project (e.g. vectorization in the FBH was done on a much larger scale between two projects due to delay in effectiveness of the RERP) and expected changes in legal framework and settings for data collection that have always been beyond Project’s influence. The latest is recognized in the “Overall Risk-Implementation Risk Rating” in the Annex Page 66 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) 4: “Operational Risk Assessment Framework” of the PAD, was identified as "Moderate", with the following comments: "This is a follow on project that follows a successful first project. There is very strong government support at both Entity and State level and the counterparts in the two Entities work well together. There is some concern that a good sustainable system can be established within the Federation because of their decentralized management of the registries and the cadastre, and this particular area will be a focus of attention during the project." 103. Some changes were bound to be made among the significant number of indicators (33). Some indicators were changed due to change in priorities during the implementation. Furthermore, this rating should be correlated with other ratings in the document - Moderately Satisfactory with definition of having only moderate shortcomings in identification, preparation, or appraisal. 104. Re Annex 1, indicators on direct project beneficiaries and female beneficiaries: The final target value for the FBH has not been changed – it remains at 930,000. As of March 31, 2019, 843,657 owners and co-owners have registered their property and protected their rights helping improve security in property transactions and overall economic development. During the time of Project implementation, the percentage [of female beneficiaries] in the FBH has increased from 30 per cent (calendar year 2014) to 38% (calendar year 2017 and calendar year 2018). 105. Re Annex 1, indicator on public awareness campaign: The final target value for the FBH has not been changes – the final target remains at 243. This indicator was achieved for the FBH in the first quarter of 2019. 106. Re Annex 1, indicator on CMs covered by vulnerability mapping: For the FBH, the indicator is exceeded by 12 as harmonization is, due to the high interest from the courts and municipalities, covering overall 255 CMs instead of 243 CMs (as has been planned under the Project). 107. Per paragraph 62 of Annex 5 to the ICR: There has not been downsizing in end target for number of CMs in the FBH. End target has always been 278 (baseline 35 CMs+243 CMs). Data harmonization covers 255 CMs, which is by 12 CMs more than planned by the Project – more CMs are included in harmonization in order to accommodate interests/requests from the courts and municipalities. Page 67 of 68 The World Bank REAL ESTATE REGISTRATION PROJECT (P128950) ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) PAD ISRs Numbers 1 to 12 Aides Memoire from Bank supervision missions Restructuring documents 2016 and 2017 Country Partnership Framework 2016-2020 Customer Surveys 2012 and 2015 Impact Evaluation reports 2015 Borrowers’ Interim ICR Reports 2018 Page 68 of 68