The World Bank Report No: ISR6544 Implementation Status & Results Montenegro Land Administration and Management Project (P106906) Public Disclosure Copy Operation Name: Land Administration and Management Project (P106906) Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 07-Nov-2011 Country: Montenegro Approval FY: 2009 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Real Estate Admin Dept, MOF, Ministry of Spatial Planning and Environment Key Dates Board Approval Date 09-Dec-2008 Original Closing Date 30-Apr-2014 Planned Mid Term Review Date 19-Sep-2011 Last Archived ISR Date 07-Nov-2011 Effectiveness Date 24-Feb-2009 Revised Closing Date 30-Apr-2014 Actual Mid Term Review Date 28-Sep-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the efficiency of permitting and property registration system. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Real Estate Administration 15.97 Improving Planning and Permitting 5.40 Project Management 1.12 Overall Ratings Previous Rating Current Rating Satisfactory Moderately Satisfactory Public Disclosure Copy Progress towards achievement of PDO Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The Project is half way through implementation and it is making good progress toward achieving its PDO. Real estate markets indicators such as the real estate transfer tax collected and property tax are both increasing. Introduction of a “one-stop-shop� for issuing construction permits and development of spatial urban plans have improved the efficiency of the permitting process, with the time to issue construction permit decreased both at the local and central levels. The major achievement of the Project has been the level of public participation in the development of planning document. The model of public participation developed under the Project has been recognized by all stakeholders, and the Ministry of Sustainable Development and Tourism (MSDT) has recommended that local governments adopt and implement this model in their development of planning documents. Page 1 of 6 The World Bank Report No: ISR6544 Locations Country First Administrative Division Location Planned Actual Montenegro Not Entered Opstina Rozaje Public Disclosure Copy Montenegro Not Entered Opstina Zabljak Montenegro Not Entered Opstina Savnik Montenegro Not Entered Podgorica Montenegro Not Entered Opstina Plav Montenegro Not Entered Opstina Mojkovac Montenegro Not Entered Opstina Berane Montenegro Not Entered Opstina Andrijevica Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Decrease in time to receive a construction Text Value 6-12 months 3.5 months 1-2 months permit (central and municipal levels) Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Central level 110 days; local level 19 days (from 21 day in Sept 2011). The legal framework has changed and local level got more responsibilities for permitting, while the central level issues permit for special category objects only, such as power Public Disclosure Copy plants, chemical industry, regional landfills, etc. The "one-stop-shop" for construction permits introduced in July 2011, will further reduce the time for issuing construction permits. Page 2 of 6 The World Bank Report No: ISR6544 Percentage of customers satisfied with Text Value READ: 4.18 (with 5 being very READ: 4.18 (with 5 being very 20% improvement over services for real estate registration and satisfied) satisfied) baseline planning and permitting MSDT: 2.92 (with 5 being very satisfied) Public Disclosure Copy Date 31-Dec-2010 23-Mar-2012 30-Apr-2014 Comments baseline survey only completed in 2010. New survey awaited. Increase in real estate transfer tax. Text Value EURO 11.4m (annual Euro 12.37 million EURO 15m (annual collections) collections) Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Annual indicator. Increased 150% compared to 2010, which indicated that the real estate market is slowly recovering. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improve efficiency of creating and supplying Text Value 30 days 8 days - within legally Response of READ to base maps and cadastre updates. prescribed timeframe. requests for maps and cadastre data provided within legally prescribed timeframe Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments annual indicator Target achieved. Decrease in time for MSPE approval of local Text Value 6-12 months 1 month (25 days) 2-4 months spatial plans and urban plans Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Target achieved and exceeded. Decrease in time to prepare and adopt urban Text Value 18-24 months 30 months 6-12 months Public Disclosure Copy plans Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Annual indicator. New planning law improves requirements for public participation which in the beginning is slowing the planning process. Page 3 of 6 The World Bank Report No: ISR6544 Decrease in number of new illegally Text Value Estimated 34,386 in 331 new illegal buildings in 9% decrease constructed buildings. September 2007 by READ. 2011. Represents a 91% National estimate is closer to reduction. 100,000. Public Disclosure Copy Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Based on the data collected Target achieved. by the MSDT department for inspection, 331 new illegal constructions occurred in 2011. In 2008 when thebaseline was established, it was estimated that some 3,725 new illegal constructions were developed each year. The change of law in2008 introduced criminal charges against those building illegally which resulted in a sharp decrease in new cases. The law on legalization is currently being prepared and it is soon to be adopted. Once the registration for legalization starts, more accurate data will be available. The expansion of the area with established real estate cadastre will also bring in some new data. Preparation of plans in targeted municipalities Text Value 0 8 11 Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments one completed and formally endorsed by the local Public Disclosure Copy government; one completed but not yet endorsed; 6 underway; tender for additional one ongoing. Reduce time for transactions to be registered - Text Value 16.8% pending cases 13% pending cases less than 8% as measured by reduction in pending cases. for all offices Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Page 4 of 6 The World Bank Report No: ISR6544 Improved procedures for registration prepared Text Value old procedures in use law amended and some new procedures in use in all and in use in all offices improved procedures in use in 22 offices all local offices. Public Disclosure Copy Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments There is improvement but it was agreed that further improvement is needed and can still be achieved. Online Real Estate Cadastre services and data Text Value no municipalities connected 1 municipality connected and all municipalities connected; provided to municpalities and other users 8 other govt users. at least 100 other users Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Completing real estate cadastre (re-survey, Text Value 0 240,000 ha of re-survey 100,000 hectares of REC public display) completed and/or underway completed Date 31-Dec-2008 23-Mar-2012 30-Apr-2014 Comments Data on Financial Performance (as of 27-Mar-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P106906 IBRD-76470 Effective 09-Dec-2008 30-Dec-2008 24-Feb-2009 30-Apr-2014 30-Apr-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P106906 IBRD-76470 Effective USD 16.20 16.20 0.00 3.85 12.02 24.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR6544 Public Disclosure Copy Key Decisions Regarding Implementation The Project Steering Committee needs to be reconstituted with the new members appointed by the Government. This should be done as soon as possible and the new Steering Committee should resume its quarterly meetings. Restructuring History Level two Approved on 19-Apr-2010, Level two Approved on 25-Jul-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6