The World Bank Report No: ISR4438 Implementation Status & Results Kosovo Business Environment TA Project (P088045) Public Disclosure Copy Operation Name: Business Environment TA Project (P088045) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: Country: Kosovo Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Trade and Industry, Kosovo Cadastre Agency Key Dates Board Approval Date 14-Jun-2005 Original Closing Date 28-Feb-2010 Planned Mid Term Review Date Last Archived ISR Date 09-Jan-2011 Effectiveness Date 17-Oct-2005 Revised Closing Date 31-May-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the business environment by reducing uncertainty of key regulatory processes, improving delivery of related services, strengthening property rights, and increasing transparency and accountability of implementing institutions. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Business Services Integration 2.50 Enhancement of Immovable Property Rights 3.50 Project coordination and monitoring 1.00 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview The Project Development Objectives (PDO) continue to be highly relevant for the Government's efforts aimed at improving the investment climate in Kosovo. The business environment component has achieved important progress. However,several important activities remain to be completed. . The number of registered businesses has exceeded the original target: the latest figure is 109 thousand compared to 94 thousand in the latest ISR and to 60 thousand in the original target. Progress in sub-components is summarized as follows: 1. Business Services Integration component Page 1 of 4 The World Bank Report No: ISR4438 (i) The total number of Municipal Business Centers (MBCs) as of June 14, 2011 is 22. They provide services for: business registration, closing, changes to business registration, and give information and advice to businesses on obtaining permits and licenses. The MBCs are connected on line with the central business registry in Prishtina, which is working very well. As of end August 2011, these MBCs have provided: 1736 new business registrations, 1065 changes in registration, 273 business closures, and 604 work permits. (ii) the third phase for the reconstruction of the last group of 6 MBcs has already started and works are underway. Public Disclosure Copy (iii)Technical Assistance to Kosovo Business Registration Agency (KBRA) has progressed well. New and updated software security measures and systems are in place, ensuring greater security of data of KBRA. Additional equipment and upgrades to their software have been done to ensure better services and information flow. (iv)Technical Assistance to the Ministry of Trade and Industry (MTI) and the Investment Promotion Agency of Kosovo (IPAK) has progressed, with capacity building activities for IPAK staff and significant progress made in inspections review, and licensing and permits review. (v)The work for modernization of Kosovo pledge registry has been progressing successfully and it's software and regulations are in the process of being updated and improved.The registry processes some 100 registrations per day. It has around 20000 registrations per year and a total of over 160000 registrations in its database.The registry has an annual income of 200000 Euro, the expenses of the registry are estimated at around 15% of this amount. Apart from the importance of the pledge system in SME development and increase of access to credit, it contributes to the Kosovo Treasury with an amount of 170000 Euro annually. More emphasis should be given to the increase of capacity of the staff of the registry to operate and maintain the system (2) Immovable property rights component. The implementation is progressing well . The progress on remaining activities by sub-components is as follows: (i) Support for the Establishment of an Immovable Property Rights Registration System . Architectural design for 4 MCO's . The designs of the MCOs Peja, Mitrovica, Lipjan and Skenderaj are under preparation. The final set of the design will be completed by end of September 2011. In the mid-time KCA has signed MoUs about the responsibilities of parties with all MCOs (ii) Cadastre Reconstruction. The work on the reconstruction of cadastral informations and data collection in 26 Cadastral Zones is progressing well. It is expected that the project including the public display will be finalized November 2011. In the same time the Commission established from the KCA is active in the public display process. (iii) Building Cadastre Project of Building Cadastre is finalized with more than 12.000 applications collected in the cities of Prishtina, Peja, Prizren and Gjilan. The Operational Manuals, training needs assessment, and the Building Cadastre Construction (BCC) in 4 pilot cities up to the public display procedure, have been completed. The Public Awareness Campaign (PAC) has also been carried out successfully . As a result of improvement in the system, time to register real estate transactions has been reduced from an average of 40 days to about 15 days, with the objective of meeting the target before project completion. In addition, registered mortgages increased from 2,500 to almost 4,000 according to the latest ISR. The target is 6,000. We acknowledge the need to be cautions on the attainability of this target as the real estate market is depressed worldwide. Locations No Location data has been entered Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Reduced regulatory compliance costs of Text Value 5% (Investment climate 3.5% Investment climate business measured by percentage of survey (ICS) 2004 survey management itme spend on compliance with Date 30-Apr-2004 15-Jun-2009 31-May-2012 business regulati on. Comments Increased number of registered businesses. Text Value 45 000 enterprises 60 000 enterprises 100 000 enterprises Date 30-Dec-2005 15-Jun-2009 31-May-2012 Page 2 of 4 The World Bank Report No: ISR4438 Comments Quarterly reports from KBRA Increased access to finance measured by Text Value 2510 6000 increased number of registered mortgages per Public Disclosure Copy year. Date 31-Dec-2005 30-Sep-2010 31-May-2012 Comments Based on reports from local KCA offices Number of administrative procedures for Number Value 15.00 licenses and permits simplified and streamlined Date 31-May-2012 Comments Quarterly reports MTI Number of inspection bodies reduced Number Value 22.00 Date 31-May-2012 Comments Quarterly reports MTI Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Business Service Centers applying new service Text Value 0 10 25 standards. Date 30-Dec-2005 15-Jun-2009 31-May-2012 Comments Quarterly reports by MTI Numbers of apartments registered in the Text Value 0 20000 building cadastre. Date 30-Dec-2005 07-Jul-2010 31-May-2012 Comments After BCC technical services contract is completed, flats will be registered by owners. Reduction of time to register property Text Value 40 days 10 days transactions in Pristina and Ferizaj Date 30-Dec-2005 07-Jul-2010 31-May-2012 Public Disclosure Copy Comments Reports from MCOs number of MCOs reengineered Number Value 2.00 Date 31-May-2012 Comments Number of transactions registered in the IPRR Number Value 25000.00 50000.00 per year Date 30-Sep-2009 31-May-2012 Comments Page 3 of 4 The World Bank Report No: ISR4438 Data on Financial Performance (as of 16-Sep-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date Public Disclosure Copy P088045 IDA-H1670 Effective 14-Jun-2005 27-Jul-2005 17-Oct-2005 31-May-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P088045 IDA-H1670 Effective XDR 4.70 4.70 0.00 3.73 0.97 79.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy There are no key decisions to report at this stage Restructuring History Level two Approved on 23-Feb-2010, Level two Approved on 26-Feb-2010, Level two Approved on 12-Jun-2011 Related Projects There are no related projects. 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