Completion Report
Project Number: 30531 Loan Number: 1736-MON December 2010
Mongolia: Cadastral Survey and Land Registration Project
CURRENCY EQUIVALENTS
Currency Unit – togrog (MNT)
At Appraisal At Project Completion (20 October 1999) (30 September 2009) MNT1.00 = $0.00094 $0.00070 $1.00 = MNT1,064 MNT1,427
ABBREVIATIONS
ADB – Asian Development Bank ALACGaC – Agency of Land Affairs, Construction, Geodesy and Cartography ALAGaC – Agency of Land Affairs, Geodesy and Cartography ALFP – annual land fee payment GIS – geographic information system ha – hectare km2 – square kilometer LMA – Land Management Agency MCA – Millennium Challenge Account MCUD – Ministry of Construction and Urban Development MID – Ministry of Infrastructure Development MRTCUD – Ministry of Road, Transportation, Construction and Urban Development NLIS – National Land Information System PCC – project coordination committee PMU – project management unit PPRA – project procurement-related audit SAGaC – State Agency for Geodesy and Cartography SDR – special drawing right SIPR – State Immovable Property Registry TA – technical assistance
GLOSSARY aimag – provincial administrative unit in Mongolia soum – administrative subunit of aimag to own land – to be in legitimate control of land with the right to dispose of this land as stipulated in Article 3.1.2 of the Law of Mongolia on Land to possess land – to be in legitimate control of land in accordance with purpose of its use and terms and conditions specified in respective contracts as stipulated in Article 3.1.3 of the Law of Mongolia on Land to use land – to undertake a legitimate and concrete activity to make use of some of the land's characteristics in accordance with contracts made with owners and possessors of land as stipulated in Article 3.1.4 of the Law of Mongolia on Land cadastral – activity of mapping for all types of cadastre using the results of geodetic mapping survey, identification, and processing as specified in Article 3.1.2 of the Cadastral Mapping and Land Cadastre Law of Mongolia parcel – an area of land which is owned, possessed, or used by a person or group of persons, registered with particular type of land use, and having its boundaries, size, and identifying number determined from a cadastral survey as specified in Article 3.1.4 of the Cadastral Mapping and Land Cadastre Law of Mongolia land registration – activity to register, license, and transfer land in possession or use with clear boundary marks and to certify them as specified in Article 3.1.14 of the Cadastral Mapping and Land Cadastre Law of Mongolia
NOTES
(i) The fiscal year (FY) of the government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars.
Vice-President C. Lawrence Greenwood, Jr., Operations 2 Director General K. Gerhaeusser, East Asia Department (EARD) Country Director A. Ruthenberg, Mongolia Resident Mission, EARD
Team leader S. Rosenthal, Principal Portfolio Management Specialist, Mongolia Resident Mission, EARD Team members T. Badarch, Social Sector Officer, Mongolia Resident Mission, EARD G. Ganzorig, Administrative Assistant, Mongolia Resident Mission, EARD
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
CONTENTS
Page
BASIC DATA i
I. PROJECT DESCRIPTION 1 A. Project Objectives 1 B. Project Components and Scope 1 C. Project Execution and Implementation Arrangements 2 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Institutional Development and Reform 8 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 9 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 11 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14
APPENDIXES
1. Project Framework and Evaluation of Accomplishments 15 2. Detailed Outputs at Completion 18 3. Comparison of Project Implementation Schedule at Appraisal and Completion 19 4. Project Costs 21 5. Status of Compliance with Loan Covenants 23 6. List of Training Organized within the Framework of the Cadastral Survey and Land Registration Project 27 7. Full List of Procurement Contracts 29 8. Quantitative Assessment of Project Outputs 31 9. Quantitative Assessment of Overall Project Performance 33
BASIC DATA
A. Loan Identification
1. Country Mongolia 2. Loan Number 1736-MON 3. Project Title Cadastral Survey and Land Registration Project 4. Borrower Government of Mongolia 5. Executing agency Agency of Land Affairs, Construction, Geodesy and Cartography (formerly State Agency for Geodesy and Cartography) for component A and the Land Management Agency for component B 6. Original loan amount SDR7.21 million ($9.90 million) Net loan amount SDR6.38 million ($9.66 million) 7. Project completion report number MON 1228
B. Loan Data
1. Preappraisal – Date started 23 February 1999 – Date completed 5 March 1999
2. Appraisal – Date started 12 October 1999 – Date completed 20 October 1999
3. Loan negotiations – Date started 18 November 1999 – Date completed 22 November 1999
4. Date of Board approval 27 January 2000
5. Date of loan agreement 25 April 2001
6. Date of loan effectiveness – In loan agreement 24 July 2001 – Actual 27 September 2001 – Number of extensions 1
7. Closing date – In loan agreement 31 December 2007 – Actual 5 October 2010 – Number of extensions 1
8. Terms of loan – Interest rate 1.0% per annum during grace period and 1.5% thereafter – Maturity 32 years – Grace period 8 years
9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 13 November 2001 7 April 2010 100 months
Effective Date Actual Closing Date Time Interval 27 September 2001 30 September 2009 96 months
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b. Amount ($) Cat Original Last Revised Amount Undisbursed No. Category or Subloan Allocation Allocation Disbursed Balance1 (1) (2) (3) (4) (5) (6=4–5) 01 Turnkey contract for NLIS 1,420,000 1,744,298 1,664,256 80,042 02 Satellite Imagery, Aerial Photo 3,307,000 3,506,300 3,466,158 40,142 and Survey 03A Equipment, Vehicles, and 798,000 911,780 911,780 … Furniture – Component A 03B Equipment, Vehicles, and 213,000 99,220 26,932 72,288 Furniture – Component B 04A Operation and Maintenance - 101,000 123,024 123,024 … Component A 04B Operation and Maintenance - 359,000 336,976 106,606 230,370 Component B 05A Benefit Monitoring and 32,000 32,000 32,000 Evaluation - Component A 05B Benefit Monitoring and 32,000 32,000 32,000 Evaluation - Component B 06 Interest Charge 322,000 322,000 79,647 242,353 07 Unallocated 627,000 103,402 103,402 Imprest Account 2,837 (2,837) Total (SDR) 7,211,000 7,211,000 6,381,240 829,760
Total ($ equivalent) 9,900,000 10,969,356 9,660,701 1,308,656 a b c d … = not available, ( ) = negative. NLIS = National Land Information System. 1 For final cancellation. a - $ equivalent per report and recommendation of the President. b - Total of (d + e). c - Actual $ equivalent. d - $ equivalent as report preparation.
10. Local costs (financed) - Local cost financing ceiling $5,358,143 - Percent of eligible financing 92.63% - Percent of total cost 39%
C. Project Data 1. Project cost ($ million) Appraisal Cost Estimate Actual Foreign exchange cost 7.30 4.08 Local currency cost 5.44 6.06 Total 12.74 10.14
2. Financing plan ($ million) Appraisal Actual Cost Estimate Implementation costs Borrower financed 2.84 0.48 ADB financed 9.46 9.54 Subtotal 12.30 10.02 Service costs Borrower financed 0.0 0.00 ADB financed 0.44 0.12 Total 12.74 10.14 ADB = Asian Development Bank. iii
3. Cost breakdown by project component ($ million) Appraisal Actual Foreign Local Total Foreign Local Total Component Exchange Currency Cost Exchange Currency Cost A. Cadastral survey 3.27 3.21 6.48 1.40 5.72 7.12 and mapping B. National Land 2.51 1.28 3.79 2.56 0.34 2.90 Information System Total Base Cost 5.78 4.49 10.27 3.96 6.06 10.02 (A+B) C. Contingencies Physical 0.58 0.45 1.03 0.00 0.00 0.00 Price 0.50 0.51 1.01 0.00 0.00 0.00 Total Base Cost and 6.86 5.44 12.30 3.96 6.06 10.02 Contingencies D. Service charges 0.44 0.00 0.44 0.12 0 0.12 Total (A+B+C+D) 7.30 5.44 12.74 4.08 6.06 10.14
4. Project schedule Item Appraisal Estimate Actual Phase 1 Date of award Q1 2001 Q3 2002 Completion of work Q4 2002 Q2 2005 Phase 2 Date of award Q3 2002 Q3 2005 Completion of work Q4 2004 Q4 2007 Phase 2 Date of award Q1 2005 Q4 2007 Completion of work Q4 2006 Q3 2009 National Land Information System Date of award Q1 2002 Q2 2007 Completion of work Q4 2006 Q3 2009 Q = quarter.
5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 27 Jan 2000 to 29 Sep 2000 Satisfactory Satisfactory From 30 Sep 2000 to 30 Oct 2001 Unsatisfactory Unsatisfactory From 31 Oct 2001 to 31 Sep 2010 Satisfactory Satisfactory
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D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Fact-finding 19–29 April 1998 11 Consultation mission 2–10 Feb 1999 8 Pre-appraisal 23 Feb–5 Mar 1999 4 14 a, d Appraisal 12–20 October 1999 4 9 a, d Inception mission 27 Mar–15 Apr 2002 4 19 a, c Review mission 1 15–23 Feb 2003 1 9 a Review mission 2 25 Nov–2 Dec 2003 2 9 a, c Midterm review mission 23–31 Mar 2005 2 9 a, c Review mission 3 8–10 Nov 2006 2 6 a, b Review mission 4 21–22 June 2007 2 2 a, b Review mission 5 11–18 Mar 2008 2 8 a, b Review mission 6 4–28 Nov 2008 2 6 a, b Review mission 7 17–24 June 2009 2 8 a, b Review mission 8 9–14 Dec 2009 2 6 a, b Project completion review 19–28 Oct 2010 3 15 a, b a = professional staff, b = national officer, c = economist, d = programs officer.
I. PROJECT DESCRIPTION
1. In January 2000, the Asian Development Bank (ADB) approved a loan equivalent to $9.9 million to the Government of Mongolia for the Cadastral Survey and Land Registration Project. 1 ADB classified the loan as an economic growth intervention. An initial environmental examination classified the project as category C. Environmental implications were reviewed, and no significant adverse environmental impacts were identified.
A. Project Objectives
2. The project's objective was to create an institutional environment (i) for the efficient issuance and administration of property and land lease certificates and other land-related documentation, (ii) for collection of land fee payments and property taxes, (iii) to support urban and agricultural development, and (iv) to support the development and operation of a private land market.
B. Project Components and Scope
3. The project had two components. Component A supported the carrying out of a systematic cadastral survey and mapping. Component B supported the establishment of a National Land Information System (NLIS). The NLIS was intended to form the basis for the legal description of property and property registration by the State Immovable Property Registry (SIPR) at national and provincial levels.
4. The cadastral survey component comprised two major activities. The first was the collection of geodetic field survey data to identify and record the location and area of all land parcels in both settlement (urban) and cropland areas. This was to result in a digital cadastral map that would form the geographic foundation upon which additional land parcel information or attribute data could be layered. The second activity was the collection of basic textual attribute data about each identifiable land parcel concerning its registration, use, or occupational status. These two data sets would be merged to create the national cadastral database that would be the basis for the NLIS.
5. The cadastral surveys were to cover up to 3 million hectares (ha) of settlement land areas and farmland (crop and intensive livestock farms, and livestock winter shelter sites), constituting about 2% of Mongolia. The work was to be carried out in three phases: phase 1:Ulaanbaatar city and Tov aimag (province); phase 2: Bulgan, Darkhan, Orkhon, and Selenge aimags; and phase 3: all remaining aimags (western, eastern, and Gobi).
6. The NLIS component would develop a computerized database for use by the Ulaanbaatar City and provincial land management departments to facilitate issuance of lease certificates, collection of land fee payments, and organization of public records of rights for possession. The NLIS would provide the SIPR with information needed to better serve the property market and finance sector, resulting in efficient property title transfers and mortgage transactions, and pave the way for the SIPR to act as the land registry when land is privatized in the future. In this way, the NLIS would form the basis for a future national land registry, providing titles to privately owned property and thereby establishing the certainty required for an efficient real estate market, use of land as collateral, and collection of associated revenues.
7. Technical assistance (TA) for Capacity Building for Cadastral Survey and Land Registration supported project implementation by (i) building the capacity of the Agency of
1 ADB. 2000. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grant to Mongolia for the Cadastral Survey and Land Registration Project. Manila (Loan 1736-MON and TA 3395-MON, for $9.9 million).
2
Land Affairs, Construction, Geodesy and Cartography (ALACGaC), as the executing agency, to adopt and manage the new concepts, tools, procedures, and technologies introduced by the project; and (ii) providing direct advice on land administration matters and procedures. 2
C. Project Execution and Implementation Arrangements
8. At project inception, the executing agencies were the State Agency for Geodesy and Cartography (SAGaC) of the then Ministry of Infrastructure Development (MID) for component A, and the Land Management Agency (LMA) of the then Ministry of Nature and Environment for component B. As a key end user of the project’s outputs, the Immovable Property Registration Agency of the Ministry of Justice was appointed as a partner organization to the executing agencies. In 2002, all land-related agencies were consolidated into one agency, the Agency of Land Affairs, Geodesy and Cartography (ALAGaC) under the then MID (subsequently Ministry of Construction and Urban Development [MCUD] and now Ministry of Road, Transportation, Construction and Urban Development [MRTCUD]). In 2006, the Immovable Property Registration Agency became a separate agency, although its role in the project was limited. The Construction and Public Services Center of the MRTCUD was merged with the ALAGaC in 2009, with the former ALAGaC being renamed as the Agency of Land Affairs, Construction, Geodesy and Cartography (ALACGaC).
9. Component A was implemented by SAGaC (until it’s dissolution in 2002) in close cooperation with municipal and provincial governments. A project coordination committee (PCC) representing ministries concerned was formed to provide policy guidance and coordination during implementation. It was initially chaired by a senior official from the Ministry of Nature and Environment, but following institutional reorganization in 2005 it was chaired by the state secretary of the MCUD. Project management units (PMUs) to manage execution and implementation were formed, initially in SAGaC and LMA, and these were subsequently merged under ALAGaC. The merged PMU was headed by a project manager, who was supported by the staff hired for the project.
II. EVALUATION OF DESIGN AND IMPLEMENTATION
A. Relevance of Design and Formulation
10. The project was consistent with ADB’s medium-term operational strategy for Mongolia 1994–1998 which was to facilitate the transition from a centrally planned economy to one based on market forces.3 The strategy included support for urban and agricultural development and promoted the establishment of a sound legal and institutional framework for effective land use policies, a land tenure and registration system, and land administration. The government was committed to accelerating its privatization program including land privatization, thereby supporting its agriculture sector strategy, housing policy, and urban development strategy.
11. A policy framework for effective land use and management was set out in the Program of Government Activities4 announced in November 1996, which emphasized the strategic importance of developing a land market and associated operating system and stressed a phased approach with initial emphasis on land used for settlements, farming, and urban development. The government recognized that the inefficiency of the existing land lease system was constraining access to land and, thus, investment in infrastructure, agriculture, and urban development.
2 Footnote 1, TA3395-MON for $990,000. 3 ADB. 1994. Country Operational Strategy Study: Mongolia. Manila. A new strategy was under preparation in 1999. 4 Government of Mongolia. 1996. Program of Government Activities. Ulaanbaatar
3
In 1996, ADB had provided support for the development of land reform under the TA for Strengthening Land Use Policies.5 Under the TA, two small pilot cadastral survey exercises were carried out to prepare a sample cadastre covering agricultural land using satellite and Global Positioning System (GPS) data, and part of Ulaanbaatar City using orthophoto and ground survey methods. These exercises spurred interest from Ulaanbaatar City and the SIPR and highlighted the urgency of implementing property privatization and conducting a cadastre.
12. The two project components and accompanying TA were well matched with the sector needs and ADB’s strategy and program in Mongolia. In particular, the project would support the government’s efforts to accelerate its privatization program (including land privatization), and address the need for a comprehensive and consistent cadastral database and development of a unified NLIS as the basis for land registration and related transactions. The project would address issues of system sustainability by ensuring that revenues generated through payment of land taxes would cover the incremental cost of the new system.
13. The project was highly relevant at appraisal and the original project design was highly relevant at project completion. It is questionable whether the level of TA provided was adequate to support the executing agency during procurement and implementation of the NLIS and to build adequate capacity to ensure sustainable operation of the system. An evaluation of accomplishments based on the project framework is in Appendix 1.
B. Project Outputs
14. Outputs were set out at appraisal for the two components of the project.
15. Cadastral survey. Component A outputs were to include (i) survey of up to 3 million ha of urban, settlement, and agricultural land; (ii) production of associated digital cadastral maps to form the geographic foundation upon which additional land parcel information or attribute data could be layered; (iii) compilation of a database of basic textual attribute data relating to each identifiable land parcel, its registration, use, or occupational status; and (iv) creation of the national cadastral database that was to be the basis for the NLIS.
16. National Land Information System. Component B outputs at appraisal were to be (i) the design and operation of a fully functional NLIS, providing a centralized server-based land information system serving all central and local government clients; and (ii) trained staff of SAGaC, LMA, SIPR (and successor central government operating and client organizations), and of Ulaanbaatar City and provincial land management departments.
17. The project outputs were partially achieved. The physical outputs for component A were largely achieved, although phase 3 of the surveying and cadastre component was significantly delayed by the cancellation of two aerial photography and digital orthophoto mapping contracts during 2007 and 2008 due to (i) failure of the bidders to comply with the qualification requirements of the bidding document; and (ii) the prolonged tender evaluation and subsequent time elapsed, preventing retender in time to enable the aerial photography
5 TA to Mongolia for Strengthening Land Use Policies, for $580,000, approved on 5 December 1995 and attached to ADB. 1995. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grants to Mongolia for Agriculture Sector Program. Manila (Loan 1409-MON, TA 2457-MON, and TA 2458-MON, for $35 million, approved on 5 December). Implementation of the TA started on 27 May 1996 and was completed in August 1997. Supplementary financing was approved on 14 August 1997 for $244,000 as a follow-up on an important TA recommendation to formulate a project for cadastral survey and land registration. This supplementary TA was completed in March 1998. The TA (i) promoted the development of a land tenure and land registration system; (ii) made recommendations for the issue of land lease certificates and the development of a land market; (iii) advised on a compatible legal framework for land registration, adjudication, and survey; (iv) advised on the development of existing land use management policies; and (v) made recommendations for appropriate systems for zoning and land use control.
4 to provide a useful input into the cadastral survey and land registration work under phase 3. Consequently, cadastral mapping and land registration for eastern, Gobi, and western provinces was carried out using other surveying techniques combined with ground verification and mapping methods. Although an estimated 83.35% of component A coverage was achieved, completion of the aerial photography and orthophoto mapping work was only 50% of the anticipated area.6
18. Notwithstanding this reduction in aerial photography, the outputs under component A were substantially achieved. Under phase 1 of component A, 880 sheets of orthophoto mapping and digital terrain model were delivered at a scale of 1:1,000 covering over 88,000 ha of settled areas, and under phase 2 approximately 980 sheets of orthophoto maps at a scale of 1:1,000 and digital terrain model were delivered covering 24,600 ha of settled areas. Outputs from the satellite image process provided cadastral survey and land registration data for agricultural cropland areas at a scale of 1:50,000 covering 25,000 square kilometers (km2) in 77 sheets under phase 1, 42,000 km2 in 96 sheets under phase 2, and 488,000 km2 in 271 sheets under phase 3.
19. Overall, the outputs from component A are fully in accordance with expectations at appraisal, notwithstanding the cancellation of the aerial photography and digital orthophoto mapping for phase 3, and challenges faced in integrating some of the data. 7 In total, cadastral survey and land registration was completed for a total of 364,117 parcels covering some 1,549,158 ha of Ulaanbaatar City, 21 aimags, 329 soums, and 55 other urban settlements during 2002–2009. While the cadastral database is a valuable tool in its own right, its value as the basis for the NLIS may be compromised unless the management system designed to handle this data is made operational.
20. Output performance under component B is currently falling short of expectations at appraisal. Although the NLIS has been designed, established, made operational (although with only 10% of data installed) and handed over to the client, it is handicapped by a lack of data, poor and inconsistent data quality, and problems related to the system architecture and operating environment. These issues will have to be addressed before the NLIS can deliver outputs anticipated at project design.
21. The NLIS, which has been named the Mongolia Land Information System, is a centralized ArcGIS server-based system in which graphical data and associated information is maintained in a central database. Central to the system’s design is that communication between users of this information and the server follows standard protocols for rendering web pages. The system is accessible using a virtual private network and is based on recent server technology for web-based editing. It comprises 10 components that interact with textual and graphical information. Positive features of the system include its homogeneous user interface, scalability, and flexibility that allows access from any workstation with internet access, and central hosting that reduces maintenance costs.
22. There are certain drawbacks to a web-based system. System performance is dependent on the size of the server network, and a significant volume of network communication is required for editing sessions. For users, the system’s functionality depends on relatively high-speed and stable network connections, which have not been
6 Overall percentage of target coverage estimated by ALACGaC. 7 Using GPS or total stations, the accuracy is higher than digitization using satellite imagery or orthophoto, but this approach presents a challenge because of the need to merge the data collected where the geodesic network is not good (as is the case in Mongolia). Satellite images are available as map sheets but without georeference information. These images need to be mosaicked back into one large image, which has not been possible in the absence of the required map coordinates. Problems with resolving the data were caused by the coordinate transformation of the data from Gauss-Kruger to Universal Transverse Mercator (UTM) projection (which took place during project implementation), and in some cases data migration failed to use the same scale factor for all transformations. However, this is relatively easily resolved.
5 widely available in Mongolia. There are also security issues associated with web-based access.
23. Some of these issues are currently affecting system performance. System operability is poor due to the speed, quality, and reliability of available internet connections. Map display is the heaviest loading process in the system, involving 94 thematic layers that require broad bandwidth and a reliable connection. Power supply fluctuations and interruptions are causing hardware and software problems. When power to the system is shut off, human intervention is needed to restart the server. As a result, system functionality is intermittent.
24. Independent of these problems is the incomplete and poor-quality data. The system is strictly designed in relation to the way that data is structured, and poor-quality data can compromise the usefulness of the entire system.
25. There are also constraints associated with system processes and basic architecture. Though a requirement under the NLIS contract, the current system does not define a connection using a particular work flow to be followed for land registration or other modules in relation to an application request.8 Other design elements that would benefit from revision are (i) the parcel numbering system which is a spatial location-based system defining the parcel based on its centroid (preventing a unique identifier supplied for building parcels); (ii) the free-hand creation or editing of parcels which (a) requires a significant quantity of data to be transferred by the server to client, and (b) will not ensure adequate quality for entering data because snapping and measuring capabilities are limited in this environment; and (iii) that the system is currently not able to generate a certificate for any of the parcels, as the system cannot generate the sketch of the parcel in the report.
C. Project Costs
26. The project did not incur significant cost overruns or underruns, and total project expenditure was $10.17 million, or 80.3% of the total planned at appraisal. Loan utilization amounted to $9.66 million (SDR6.38 million), or 88% of the loan amount. The cost reductions were largely due to (i) underutilization of allocations for procurement of vehicles, equipment, and operation and maintenance under the component B; (ii) nonutilization of allocations for project benefit monitoring and evaluation; (iii) smaller interest charge payments than anticipated; and (iv) underutilization of the unallocated amount. Savings from these sources and part of the unallocated amount were used to cover additional costs associated with the NLIS contract and cadastral survey works. During the midterm review, minor changes were made to the project scope: (i) updating the cadastral database by surveying and registering additional properties in five districts of Ulaanbaatar ($49,000); (ii) procuring additional computer and surveying equipment for district land management offices ($270,600); and (iii) preparing digital data for the NLIS in urban areas ($80,000).
27. In view of the cost increase for commodities, goods, works, and services due to inflation, SDR1.28 million was reallocated from the foreign exchange category to the local currency category, and SDR199,300 was reallocated from the unallocated category to category 02 (satellite imagery, aerial photography and survey) to finance the local costs of the remaining phase 3 cadastral survey works. The second reallocation under the project was an increase in category 01 (turnkey contract for NLIS) by $500,000.
28. Due to the appreciation of the special drawing right against the dollar and the local currency, the loan amount at loan closing was equal to $10.90 million equivalent. The
8 For instance, processing an application and map editing is not constrained by the services requested by a citizen, as specified in the application request. Similarly, editing and creating parcels in a map is not constrained by the existence of an application. This is an issue for the system in guaranteeing the quality of data. Every user who has rights to edit the map can do so without this being based on a request, and there is no constraint on how much and what data they can edit.
6 undisbursed balance of the loan was equivalent to $1.21 million, as appreciation of the special drawing right against the dollar meant the dollar value of the loan at loan closing had increased to $10.90 million. Project costs are in Appendix 4.
29. The cost overruns and underruns do not make a significant difference to the financial or economic feasibility of the project, which was not subject to detailed economic or financial analysis. The project was intended to achieve cost recovery through an increase in annual land fee payment (ALFP), projected to increase to just over MNT5 billion per annum by 2010. Records show that the ALFP collections stood at over MNT29 billion in 2009, largely as a direct result of improved cadastral mapping and property registration. At the beginning of 1999, a total of 283,600 land possessors and users were registered nationwide; by the end of 2008 this had increased to 504,900 properties. Even without a fully functioning NLIS, the project appears to have generated significant financial benefits that could more than recover costs.
D. Disbursements
30. There was no schedule of disbursements prepared at appraisal. The actual schedule of disbursements for the two components and annual operation and maintenance expenses taken from the loan are shown in Table 1.
Table 1: Yearly Disbursement by Component, 2001–2009 ($ million) Component Total 2001 2002 2003 2004 2005 2006 2007 2008 2009 A 5.3 0.2 0.3 0.5 0.2 0.4 0.8 0.9 1.8 B 2.6 … ... … … … 0.3 0.9 1.4 O&M 0.3 0.005 0.06 0.04 0.02 0.04 0.04 0.04 0.03 0.05 Total 8.2 0.005 0.3 0.4 0.5 0.2 0.4 1.1 1.8 3.3 … = not available, O&M = operation and maintenance. Source: Asian Development Bank and the EA.
31. Late disbursements resulted primarily from (i) initial project delays due to (a) disagreements between the executing agency and the PCC, and (b) slow engagement of consultants and contractors; (ii) changes in project execution arrangements and personnel; and (iii) delays in reaching agreement on bid documents and evaluations, and on the detailed scope of the tender for the NLIS contract. Due to the time required to establish the NLIS, an extension to the project completion date was agreed upon, from 31 December 2007 to 30 September 2009. A parallel extension of the completion date for consultant services under the associated TA for Capacity Building for Cadastral Survey and Land Registration (to 30 December 2009) was also required to provide technical support to the executing agency during NLIS tender evaluation, design, and commissioning. Hand over of the NLIS to the executing agency was made on 19 March 2010.
32. In general, imprest account and statement of expenditure procedures were properly applied and adequate documentation was maintained to support claims for replenishment of expenditures. ADB’s Procurement Guidelines were also generally followed in procuring goods and works through international and national competitive bidding, and international shopping. In 2005, ADB, in collaboration with the Mongolian National Audit Office, conducted a project procurement-related audit (PPRA) of the project. The audit revealed indications of potential procurement fraud and corruption schemes and irregularities in the procurement process. The audit report recommended that the executing agency strengthen project oversight and fiduciary control to ensure compliance with ADB’s policies, guidelines, and
7 procedures. 9 ADB communicated and discussed the results with the government but actions to address most issues were not taken.
33. Prior to loan closing, a limited compliance review was carried out by ADB’s Office of Anticorruption and Integrity in October 2009. The review noted that a number of standard procedures were not being followed by the executing agency, particularly in procurement, and that there was a lack of thoroughness in the evaluation of proposals and tenders. 10 The review recommended closer collaboration between the ADB Mongolia Resident Mission (MNRM) and the executing agency in ensuring bidding integrity and transparency under future ADB interventions in Mongolia. MNRM discussed the report with the executing agency and Ministry of Finance, drawing particular attention to weak procurement practices.
E. Project Schedule
34. Delays were experienced during implementation of both components. This was due to disagreements between the two executing agencies and the PCC on their respective roles, duties, and responsibilities. Initially, the PCC wanted to act as a de facto PMU and executing agency, with responsibility for procurement and budget allocation. This lack of agreement and absence of dialogue and coordination resulted in startup delay of 18 months in which no progress was achieved. Further delays in procurement were experienced as a result of a new public procurement law in 2002 which introduced new standard bidding documents that took time for the PMU to adopt.
35. For component A the delays were primarily due to lengthy procurement processes for the selection of contractors and suppliers. Delays in component B were partly due to the complexity of the component. The consultants originally engaged to carry out preparation of the tender documents were replaced, and when new consultants were engaged it took considerable time for all parties to agree on NLIS system requirements and specifications. Each phase of component A slipped further behind the original implementation schedule, and the failure of the executing agency to select suppliers for aerial photography services for phase 3 led to the cancellation of two contracts.
36. Weak project management and failure to strengthen capacity at the early stages of implementation contributed to delays. Changes to the policy, legislative, and institutional framework for land management and administration also contributed to delays. A major factor underlying the slow pace of implementation under component B appears to be the complexity of the NLIS. This, when coupled with low levels of expertise in the executing agency, meant that the project was forced to move slowly to allow the complexities of design requirements to be discussed, understood, and agreed between all parties.
F. Implementation Arrangements
37. Implementation arrangements were followed as set out at appraisal. A PMU was established initially within the SAGaC under the MID and, following the restructuring in 2002, under the MCUD with the project manager of the PMU reporting directly to the executing agency.
38. Although the execution and implementation arrangements were adequate at the time of project design, timely project implementation was compromised by (i) initial disagreements between the executing agencies and the PCC; (ii) policy and legislative changes in the land administration sector and extensive institutional changes, which brought together the two original executing agencies into a single agency; and (iii) an inactive and ineffective PCC. The complexity of the NLIS component demanded that the executing and
9 ADB. 2006. Project Procurement-Related Audit Report, Loan 1736-MON(SF): Cadastral Survey and Land Registration Project. Manila. 10 ADB. 2009. Limited Compliance Review. Manila
8 implementing agency for this component (LMA, and subsequently ALAGaC and then ALACGaC) had the necessary skills, expertise, and experience to manage the NLIS tender process and turnkey contract. While assistance was provided through the associated TA for Capacity Building for Cadastral Survey and Land Registration, the level of support was probably inadequate during the project extension period when the contractor was completing and commissioning the NLIS.
G. Conditions and Covenants
39. There were no major delays in achieving conditions for loan effectiveness. The covenants were relevant and almost all of the standard and specific covenants were complied with. Two were of particular importance. The requirement for submission of a cost recovery plan and system of user charges was important in ensuring the sustainability of the NLIS. This was eventually complied with, and fee collections are significantly in excess of projections. Another covenant, which was vital in ensuring continued sound development of the land management and administration system, is to establish a working committee to study existing land-related legislation and to develop a coherent legal framework of laws. This was only eventually complied with, and certain laws and regulations were approved that clarified the framework for transparent land administration. However, public access to land- related information remains limited. The status of compliance with loan covenants is in Appendix 5.
H. Institutional Development and Reform
40. The project was designed to support the government in land administration and management reform. International and national legal consultants and experts working under the parallel TA project, in collaboration with ALAGaC specialists, reviewed existing legislative and regulatory provisions and drafted the legislation, regulations, and instructions necessary to ensure that project activities could be carried out without contradicting existing legislative provisions. New legislation, regulation, and instructions needed to support the project, and sector reforms in cadastral survey and land management, administration, and registration were developed and subsequently approved by the minister and chair of the land authority agency. These were immediately put into effect to support the execution of project operations.
41. Extensive training and capacity building activities were provided under the project and associated TA. These had a significant beneficial impact on skills development within the executing agency and implementing agencies, and on cadastral survey contractors and staff of land management offices. In particular, the cadastral survey training contributed to capacity development, introduced state-of-the-art cadastral technologies, and supplied associated equipment. Significant capacity building and training was also delivered as part of the NLIS contract. The training outputs are in Appendix 6.
I. Consultant Recruitment and Procurement
42. Individual consultants and firms were engaged under the TA to support activities relating to (i) cadastral survey and mapping, (ii) advice regarding the preparation of legislation and regulations, and (iii) preparation of contract documents and provision of TA and advice relating to the engagement of the NLIS contractor. Consultants were engaged in accordance with ADB procedures and, although procurement was slow in some instances, delays did not negatively impact project outputs.
43. The main consultancy engaged for the TA involved a total of 22.52 person-months of international input and 35.48 person-months of national input. This time was fully used and additional international consultancy input was used to provide continuing support to the executing agency during the design and installation of the NLIS. During the midterm review
9 mission and tripartite meeting in January 2005, it was agreed that consultancy inputs on land management and valuation under the TA should not be provided since there was clear overlap with the land fiscal management project being supported by German development cooperation through GTZ during 2005–2010.
44. While most procurement of goods and services for the cadastral survey mapping component went smoothly, there were two exceptions. First, two tenders for aerial photography contracts were cancelled as a result of all bids being unresponsive. Second, several governance concerns were raised in the PPRA report in 2005 and again during the limited compliance review in 2009 (para. 34). A full list of procurement contracts is in Appendix 7.
J. Performance of Consultants, Contractors, and Suppliers
45. The performance of consultants was mixed, although in general the executing agency considered that the consultants provided good value, and the evaluation of consultants’ performance was highly satisfactory. The performance of suppliers and contractors under the survey and cadastral database component was also considered to be highly satisfactory.
46. The performance of the contractor engaged for the development and commissioning of the NLIS was satisfactory, though tempered with several challenges. The contractor’s relationship with the executing agency was at times strained, and ADB supervision missions repeatedly noted that NLIS development was falling behind schedule. Ongoing requests from the executing agency for system enhancements, combined with poor and slow responses from the executing agency on key design issues, led to frustration and misunderstanding on both sides. Following tripartite discussions in March 2009, work was accelerated and the NLIS was handed over to the client on 19 March 2010. Although the performance of the contractor was satisfactory overall, issues remain over the functionality and operability of the system.
K. Performance of the Borrower and the Executing Agency
47. Institutional weakness of the executing agency negatively affected project performance, especially the NLIS component. Despite the significant amount of consultancy services provided and the associated training and capacity building, the executing agency has struggled to keep on top of the NLIS. The NLIS is a complex system and it requires a range of specialist skills to operate, maintain, and update.
48. As a result of this institutional weakness, the executing agency was slow and inconsistent in its responses to the contractor on NLIS design, and over time this resulted in a significant departure from the original specification for the NLIS on which the contractor’s design proposal was based. It appears that there was a period when the executing agency was demanding additional features for the system, and the contractor and the executing agency were not able to agree to modifications which fell within the framework of the original design. This almost certainly contributed to some of the problems with system architecture that the NLIS now faces.
49. The executing agency accepts that shortcomings in the implementation of the project were the result of management and communications difficulties within the MRTCUD. The head of ALACGaC, who is appointed by the government rather than the MRTCUD, may not have been qualified to make informed input into the NLIS design process. There was weak project management, failure to verify information sent from the agency to senior ministry officials, insufficient staff resources, and lack of coordination within the agency and ministry.
50. The performance of the borrower is rated partly satisfactory.
10
L. Performance of the Asian Development Bank
51. ADB supported the borrower and PMU in all aspects of project implementation. Regular ADB missions facilitated adjustments to the project, conceived remedial measures, and addressed implementation difficulties. The project proved to be difficult to implement due to complexities and problems associated with the NLIS that might have been avoided with sufficient technical advice during system design and development. ADB and the TA consultant had only limited success in moderating the demands of the client. Over time, the nascent NLIS became complex relative to conditions in Mongolia. A simpler design would have avoided some of the functionality and operability problems the system now faces. The midterm review mission, which was fielded in 2005, recommended third-party quality assurance of the NLIS design. Had the executing agency undertaken this, it might have resulted in more timely and effective guidance on key design issues and led to a more functional and operable system.
52. Although some loss of institutional knowledge and continuity resulted from the transfer of responsibility of the project to the resident mission at the end of 2003, this was not significant. The project then had only 36 months of implementation left according to the original schedule, although at that time financial progress was only 12.3% and time elapsed 40.0%. The resident mission inherited project implementation problems and, following the midterm review mission, increased the frequency of project review missions. Delegating this project to the resident mission resulted in improved communications between ADB and the executing agency and ensured efficient resolution of pending issues related to implementation. The effectiveness of better communication and greater attention to the project in improving outcomes was demonstrated by substantial project completion.
53. ADB’s overall performance is rated satisfactory.
III. EVALUATION OF PERFORMANCE
A. Relevance
54. The project is considered relevant. It supported the government’s priorities in the sector, which were (i) privatization and developing systems to support the privatization of land; and (ii) improving the efficiency and effectiveness of land management and administration. The project has already made a significant difference in the processing of land title registration, particularly in Ulaanbaatar and other large cities. This is borne out by the fact that there are now twice as many land parcels registered as there were at the commencement of the project.
55. Both the creation of the cadastral database (component A) and the creation of the NLIS (component B) were highly relevant to the needs of the country, and will have a major positive impact on the property market. Indirectly, the project will contribute to the growth of the economy and poverty reduction, through easier and more transparent granting of rights and access to land. The associated TA project enhanced the project’s efficiency and relevance by ensuring that the capacity of land management and administration institutions was developed to enable them to immediately use the new data and operate the improved management systems introduced through the project. Parallel capacity building of suppliers and contractors was relevant in strengthening the ability of Mongolian businesses to supply survey and cadastral services required in a market-driven economy.
B. Effectiveness in Achieving Outcome
56. The project is considered less effective in achieving its outcomes. The cadastral database has been created and put into use. All of the most economically productive land areas in the country have been covered by the survey and cadastre, and this data is used in local land management and administration systems. This has improved the effectiveness of
11 land administration as reflected in the significant increase in land rights registrations and transactions. The number of landowners applying to obtain registration of immovable property rights increased from 8,747 in 2004 to 112,779 in October 2009. The survey and cadastre component was very effective in achieving the intended outcome.
57. The NLIS has been created and is operational, but its effectiveness in achieving its intended outcome has yet to be proved. The operation of the system faces a number of challenges, and the extent of modifications to the system architecture and operational procedures required to make it fully functional are not entirely clear. If these problems are resolved, the executing agency will have a modern NLIS which should be highly effective in delivering the anticipated project outcomes.
C. Efficiency in Achieving Outcome and Outputs
58. The project is considered to have been less efficient in achieving the outcomes and outputs which have been delivered. The surveying and cadastral database component was delivered in a timely fashion once early issues were resolved. The project outputs were immediately put into use after delivery, and are delivering benefits.
59. Project efficiency was enhanced by (i) the contribution to policy reform (land privatization) and the development of improved legislation and regulation required to support the survey and land cadastre work; and (ii) the training, capacity building, and technical support provided under the parallel TA for Capacity Building for Cadastral Survey and Land Registration.
60. ADB played an active and positive role in maximizing the efficiency of the project in achieving its intended outcome. The institutional arrangements for the project were complex and changed substantially during project execution, and at times there was conflict between the executing agencies and the PCC, and between the executing agency and its suppliers, which could have negatively affected project efficiency. ADB played an important role in resolving related issues in a timely fashion.
61. The complexity of the NLIS component also presented an efficiency risk and the TA consultants and ADB played an important role in maximizing the efficiency of the component’s delivery and commissioning through a turnkey contract. Notwithstanding the problems still faced by the NLIS, the output-based nature of the contract provided an opportunity to maximize the efficiency of system design, delivery, and implementation. Efficiency was also enhanced by the transfer of responsibility for project administration from ADB headquarters to the resident mission in Ulaanbaatar. This enabled more timely and frequent opportunities for project supervision and problem solving.
D. Preliminary Assessment of Sustainability
62. The project sustainability is assessed as likely. The technical sustainability of the project depends on the continued ability of system operators to use the systems created through the project to optimally deliver anticipated benefits. For the survey and cadastre outputs, these systems are already working and sustainability should be achieved if resources are available from increased revenues to update cadastral databases as new land is brought into development. The technical sustainability of the NLIS remains in doubt, although the extensive TA and capacity building provided under the project should ensure that the system can be effectively operated once the current issues are resolved.
63. The support being offered by the Millennium Challenge Account (MCA) to assist in rolling out the NLIS should further contribute to its sustainability. The MCA has applied a portion of the Millennium Challenge Corporation (MCC) funding to contracts that fall directly
12 under the Property Rights Project11 that is focused on the improvement of the formal system for recognizing and transferring land rights. These include geographic information system (GIS) mapping in suburban ger (traditional felt tent) areas; a legal reform program that seeks to “Improve the Legal and Institutional Environment for Urban Land Privatization, Registration, and Exercise of Rights to Land”; and the MCA business process and information technology systems program which seeks to improve and make registration processes more efficient and effective for the public and private sectors.
64. The institutional sustainability of the system is a function of the ownership by the executing agency and users, and the capability and capacity of the users to use the data produced and operate the systems. There is clear ownership of outputs from component A (by the user local governments) and component B (by ALACGaC, which has accepted the system). Capacity building and training carried out under the project and associated TA has ensured that existing staff of the user agencies have the skills to operate the systems. The risk is that additional financial resources being generated from land management and administration will not be used to add further capacity where it is required. With the increasing volume of land transactions, local governments will require additional human resources. While ALACGaC and aimag staff have been trained in the use of the NLIS system and modules, sufficient resources need to be allocated to ensure there is no further attrition of trained staff from provincial land offices and ALACGaC.
65. With regard to financial sustainability, even without a fully functioning NLIS the revenues from property transactions far exceed the target of MNT5 billion for 2010 set at appraisal. Revenues from the ALFP, which will ensure the sustainability of the land administration system, have increased from MNT7.3 billion in 2001 to MNT39.6 billion in 2009.12 As long as sufficient budget is provided for operation and maintenance of the land management and administration system, the project will remain financially sustainable. An operational NLIS will further contribute to increasing revenues. Cost recovery has been fully achieved.
E. Impact
66. The overall impact of the project is very positive, and will be further enhanced once the NLIS is fully operational. The improved cadastre database is having a highly beneficial impact on urban planning and administration to support economic activity, particularly in major urban areas. In Ulaanbaatar, 98% of the land possessed by economic entities and households is now covered by secured land certificates. In all aimags, users of 632,000 ha of cropland and family gardening land possess secured land certificates. According to cadastral data produced under the project, 181,960 legal bodies (households and economic entities) now hold land certificates.
67. A broader positive impact has been generated by capacity development under the project and associated TA, and the legislative and regulatory reforms which facilitated project implementation and efficient use of project outputs. In total, over 1,000 people have benefited from the training programs.
68. The project’s environmental and social impacts are positive. Improved land management means reduced environmental degradation, greater land use potential, and reductions in the social and economic costs of disputes over property, land use rights, and boundaries. More timely and efficient access to property rights has a beneficial impact on poverty reduction.
11 MCA. 2008. Property Rights Project. Ulaanbaatar. 12 Annual revenue from land fee and property tax.
13
IV. OVERALL ASSESSMENT AND RECOMMENDATIONS
A. Overall Assessment
69. Most elements of the project and associated TA have been highly successful. Component A was successfully executed, has been put into operation, and is delivering benefits. Training and capacity building (i) ensured that the many issues faced during implementation were resolved, (ii) assisted in delivering a technically complex set of outputs, and (iii) built government and private sector capacity in the field.
70. Component B is currently only partly successful as only about 30% of the data required for full operation has been migrated to the NLIS, and the NLIS cannot currently be reliably operated as intended. It can be made operational with some additional support to adjust the system architecture or modify system operations. However, there will still be challenges around the reliability of power supplies, the quality and capacity of the internet network, and the quality and reliability of data. These issues are expected to be resolved over time as power and communications infrastructure and services improve. The MCA has an interest in supporting further development of the NLIS.
71. The contribution of the project to policy and legislative reform, while not as comprehensive as anticipated at appraisal, was significant. It provided a sufficient basis for components A and B to be successfully executed, and provides a platform for further sector reform.
72. While the project made a significant contribution to training and capacity building, more could have been done to support the executing agency in understanding the technical complexity of component B of the project. The introduction of the NLIS represents a major transformation in land management and administration practices in Mongolia. The TA could have been designed to do more to help the executing agency fully understand the dimensions of this change and to help it through the system design process.
73. Overall performance is rated partly successful.
B. Lessons
74. Mongolia is a large country with a small population and limited technical capacity. The project represented a major change to existing practices in institutions with few technical resources and limited technical capacity. In future interventions of this type, greater emphasis should be placed on measures to build technical and management capacity in the executing, implementing, and end-user institutions. Due to ADB’s flexibility in adjusting implementation arrangements, implementation was not negatively impacted, despite institutional changes during the initial years of the project.
75. Elements of the project were technically complex. While the TA consultants did a good job of specifying the system requirements, there were insufficient resources to fully familiarize the client with the technical approach, and to moderate requests for system enhancements. As a result, there was a communication gap between the client and the NLIS contractor, which ultimately resulted in the system design moving away from the structure originally specified. Additional technical resources would have mitigated, and might have avoided, this situation. ADB’s midterm review suggested that a third-party review of the NLIS design be carried out. This was not taken up although it might have resulted in a better outcome.
76. The level of complexity of the NLIS was also a challenge for ADB. While the TA consultant provided useful reporting and briefing notes, the consultant and ADB were unable to prevent delays that resulted from the negotiations between the executing agency and contractor. More technical support during NLIS design could have helped.
14
77. In designing the NLIS, more attention could have been paid to the external constraints likely to impact negatively on the system (such as power and connectivity constraints). A more incremental approach to system development might have been more appropriate, with complexity added as external infrastructure improved.
C. Recommendations
1. Project Related
78. Project design. Where projects are of a highly complex nature, ADB should ensure that sufficient TA is made available so that the executing agency and ADB are fully conversant with technical issues. Technically complex projects are likely to require significant institutional development and capacity building, and projects should include the resources to support this.
79. Covenants. The covenants were generally relevant and most were complied with. Those that were only partly complied with were important for long-term project sustainability, such as those relating to cost recovery. In future, it would be preferable to concentrate on a few of the more critical covenants and make them a strong focus of project review missions.
80. Further action or follow-up. There is need for continuing support to the NLIS to enable it to be made fully operational, and ensure its utility in facilitating outputs from other projects in land management administration and registration currently being implemented with support from the MCA and GTZ. Specific proposals and recommendations relating to the NLIS are that (i) a detailed system capacity evaluation is undertaken, based on the current detailed configuration of system architecture; (ii) the system is modified to follow a framework of integrated work flows; (iii) the GIS module is modified to follow rules for land management and land registration; (iv) GIS data for each module is structured to decrease system loads; and (v) sufficient staff and resources are allocated by the executing agency to ensure full operation of the NLIS.
81. To ensure sustainability, the executing agency, with the support of ADB and other development partners, needs to address weak management and technical capacity through training and capacity building of the agency. This needs to continue over the maintenance period of the NLIS to ensure that there is full agency ownership of the system and that it transitions to successful and sustainable operation. The executing agency has to ensure that sufficient funds are allocated in annual budgets of land management offices for regular updating of the cadastral database. In addition, issues constraining the migration of some data to the system due to security concerns need to be addressed.
82. Additional assistance. In view of the activities of other development partners (particularly the MCA and GTZ) in the sector, and the interest of the MCA in supporting further development of the NLIS, it is recommended that ADB liaise closely with the MCA and executing agency to maximize the opportunity for this support to benefit further development of the NLIS.
83. Timing of the project performance evaluation report. It is recommended that the project performance evaluation report be carried out within the next 12–18 months, by which time the NLIS contractor’s maintenance period will be complete and the system will have had over 6 months of operation without the support of the contractor.
2. General
84. The project was highly relevant to the government’s priorities and was well matched with ADB’s sector strategy and program in Mongolia. Despite this, the project was outside ADB’s core area of expertise. In such cases, ADB should ensure that sufficient support is available for an appropriate level of technical advice and assistance to the executing agency.
Appendix 1 15
PROJECT FRAMEWORK AND EVALUATION OF ACCOMPLISHMENTS
Design Summary Performance Indicators PCR Evaluation of Assumptions and and Targets Accomplishments Risks Goals Increased number of Government data shows Accomplishments not Develop a functional private transactions in increased numbers of necessarily related to property market in property private property project outcomes Mongolia and an transactions improved land Increased amount of Little political will to administration system. sectoral investment Data from government increase Encourage Investment in Increased Government shows increased inward decentralization of industrial, commercial revenues and reduced and domestic investment in budgets or reduce and agricultural sectors. central subsidies to industry, commercial, and central subsidies to provinces agriculture sectors provinces Improve the Governments fiscal Government revenues position. increased, including revenues from land transactions Purpose
Provide guaranteed Land-use records are Land-use records have Government policy on property title to prevent established for about 2 been established for about privatization of social and economic million ha of cropland and 350,000 parcels covering residential property costs of disputes over about 1 million ha of about 1.5 million ha of land has advanced. property and land use urban and settlement rights and boundaries. land. Land registration and cadastral mapping has Total land fee collections Improved annual land fee MNT5 billion is collected advanced. payment (ALFP) increased to MNT29 billion by 2010. by 2009 Land fee payment collection by local governments has increased. Outputs 1. Component A: Cadastral survey and Maps with base scale of Maps developed with base Local contractors were land registration 1:2,000 for all urban and scale of 1:1,000 for all technically adequate settlement land and with urban and settlement land system established Improved competence and cadastre produced scales 1:50,000 for all and with scales of 1:50,000 cropland for all cropland among SAGaC and Digital orthophoto maps then ALAGaC staff produced All parcels recorded in the All parcels recorded in the cadastral map cadastral maps Proper procurement Cadastral database arrangements enabled produced Attribute data collected Attribute data collected and works to be completed (registration of recorded for mapped area to an acceptable possession or use) for all in Ulaanbaatar city, Tov, standard land parcels Darkhan-Uul, Orkhon, Bulgan, Selenge, Dornod, Commitment and Network system designed Sukhbaatar, Hentii, motivation of provincial staff ensured 2. Component B: NLIS Computer sets installed in Omnogovi, Dornogovi, established 21 provinces, city and Govisumber, and Dundgovi Counterpart budget LMA provinces with 145 allocated adequately (i) Hardware and subprovinces. Quality may Software systems for 26 persons trained in be patchy Risk if trained staff NLIS established computer literacy courses cannot be retained, or Network system designed if NLIS system not (ii) Capacity developed 2 systems administration operational for an courses 364,117 land parcels for operating NLIS covering 1,549,158 ha in extended period such 6 persons trained in one Ulaanbaatar city, 21 that retraining is required year international training provincial centers, 329 courses soums (administrative subunit of aimag (province)), and 55 settled areas have been recorded by the project
16 Appendix 1
Design Summary Performance Indicators PCR Evaluation of Assumptions and and Targets Accomplishments Risks NLIS designed and installed to provide comprehensive land information system Hardware procured and installed in Ulaanbaatar and provincial centers Training carried out for a total of 1,060 trainees in 17 modules and using a total of more than 8,000 training days Activities
4.1 Cadastral Survey and Mapping - Aerial photography and (i) Aerial Aerial photography and satellite imagery analysis satellite imagery analysis photography carried out and completed (ii) Satellite imagery carried out and completed
analysis Vehicles and equipment (iii) Vehicles and Vehicles and equipment procured procured equipment acquisition Field survey, digital Field survey, digital (iv) Field survey mapping, and cadastral (v) Digital mapping mapping, and cadastral database established database established (vi) Cadastral database Project assistance Project assistance establishment provided (vii) Project provided
management, Training carried out including Training carried out
finalization of tender
documents and bid evaluation
under TA
4.2 Design and NLIS designed Establishment of the NLIS designed
NLIS Equipment and vehicles (i) NLIS system Equipment and vehicles procured procured design (ii) Network Project assistance Project assistance equipment provided installation provided
(iii) Training Training carried out (iv) Vehicles and Training carried out
equipment NLIS commissioned acquisition NLIS commissioned (v) Project management, including finalization of tender documents and bid evaluation and other advisory services under the TA
Appendix 1 17
Design Summary Performance Indicators PCR Evaluation of Assumptions and and Targets Accomplishments Risks Inputs I. Investment Costs - $12.7 million $10.14 million (i) Survey, investigation, and mapping 75 months 92 months 1. Aerial photography - ADB Loan disbursement contracts records 2. Survey and mapping. (ii) Satellite imagery (iii) Operation and Maintenance 1. Annual audit 2. Contract supervision (iv) Benefit monitoring and Evaluation (v) Equipment, vehicles, and Furniture (vi) NLIS turnkey contract (vii) International consultants 1. Cadastral survey 2. NLIS development 3. Land valuation 4. Land legislation
II. Recurrent Costs A. Staff Salaries B. Office and vehicle Operation ADB = Asian Development Bank; ALAGaC = Agency of Land Affairs, Geodesy and Cartography; ALFP = annual land fee payment; ha = hectare; LMA = Land Management Agency; NLIS = National Land Information System; PCR = project completion report; SAGaC = State Agency for Geodesy and Cartography; TA = technical assistance. Source: Asian Development Bank.
18 Appendix 2
DETAILED OUTPUTS AT COMPLETION
Table A2: Summary of Completed Works for Cadastral Survey and Land Registration (nationwide) Polygonometer Cadastral Topographic Old Preparation of Network Evaluation Survey and Digital Mapping Fixed Points Points and Measurement and Network Land at Scale of Rotation Survey Fixing on the Its Development Measurement Registration 1:1,000 Parcels Points Phase (no.) Ground (no.) (points) (km) (ha) (ha) (no.) (no.) Phase 1 867 1,096 1,824 1,735.57 373,035.71 7,119.19 157,232 1,683 Phase 2 376 562 911 1,261.93 481,502.53 4,731.00 61,971 4,691 Phase 3 A 471 366 786 1,411.61 276,254.03 13,539.14 41,640 858 Phase 3 B 519 1,439 1,968 2,169.50 418,365.32 46,467.06 103,274 1,031 Total 2,233 3,463 5,489 6,578.61 1,549,157.59 71,856.39 364,117 8,263 ha = hectare, km = kilometer, no. = number. Note: Completion of works for cadastral survey and land registration by phase covering 21 provinces, 329 soums (administrative subunit of aimag), and 55 settlement areas between 2002 and 2009 are shown. Source: Asian Development Bank, based on information provided by the project management unit.
Appendix 3 19
COMPARISON OF PROJECT IMPLEMENTATION SCHEDULE AT APPRAISAL AND COMPLETION
Table A3.1: Original Project Implementation Schedule
Source: Asian Development Bank.
20 Appendix 3
Table A3.2: Actual Project Implementation Schedule
Source: Asian Development Bank.
Appendix 4 21
PROJECT COSTS
Table A4.1: Project Cost by Expenditure Category ($ million) a Cat Original Last Revised Amount Undisbursed No. Category Allocation Allocation b Disbursed Balance 01 Turnkey contract for NLIS 1,949.52 2,714.90 2,589.60 125.30 02 Satellite imagery, aerial photo, and 4,540.19 5,344.90 5,282.00 62.90 survey 03A Equipment, vehicles, and furniture – 1,095.58 1,295.50 1,295.50 … Component A 03B Equipment, vehicles, and furniture – 292.43 153.60 40.40 113.20 Component B 04A Operation and maintenance – 138.66 172.80 172.80 … Component A 04B Operation and maintenance – 492.87 523.10 162.40 360.70 Component B 05A Benefit monitoring and evaluation – 43.93 50.10 … 50.10 Component A 05B Benefit monitoring and evaluation – 43.93 50.10 … 50.10 Component B 06 Interest charge 442.07 497.40 118.00 379.40 07 Unallocated 860.81 161.90 … 161.90 08 Imprest account 0.00 (4.40) … (4.40) Total 9,900.00 10,959.90 9,660.70 1,299.20 … = not available, ( ) = negative, NLIS = National Land Information System. a Conversion rate of special drawing right to dollar was SDR1.372 at appraisal and SDR1.557 at completion (30 September 2009). b Latest date of category reallocation to address a negative balance in cost categories is 5 October 2010. Source: Asian Development Bank estimates.
Table A4.2: Cost Breakdown by Project Component ($ million) Appraisal Actual Foreign Local Total Foreign Local Total Component Exchange Currency Cost Exchange Currency Cost A. Cadastral Survey and 3.27 3.21 6.48 1.40 5.72 7.12 Mapping B. National Land Information 2.51 1.28 3.79 2.56 0.34 2.90 System Total Base Cost (A+B) 5.78 4.49 10.27 3.96 6.06 10.02 C. Contingencies Physical 0.58 0.45 1.03 0.00 0.00 0.00 Price 0.50 0.51 1.01 0.00 0.00 0.00 Total Base Cost and 6.86 5.44 12.30 3.96 6.06 10.02 Contingencies (A+B+C) D. Service charges 0.44 0.00 0.44 0.12 0.00 0.12 Total (A+B+C+D) 7.30 5.44 12.74 4.08 6.06 10.14 Source: Asian Development Bank.
22 Appendix 4
Table A4.3: Project Cost Summary by Expenditure Accounts
At appraisal Actual Component Foreign Local Total Foreign Local Total ($’000) ($’000) A. Investment Cost 1. Survey, investigation, and mapping a. Satellite imagery 46 46 ... 56 56 b. Aerial photography 916 204 1,120 398 ... 398 c. Geodetic survey and mapping 1,202 2,208 3,410 ... 5,013 5,013 d. Data acquisition i. Base map data ... 6 6 ...... ii. Attribute data ... 117 118 ...... Subtotal (A1) 2,164 2,536 4,700 398 5,069 5,467 2. Operation and maintenance a. Annual audit 26 60 86 ... 25 25 b. Contract supervision 275 275 ...... Subtotal (A2) 26 335 361 ... 25 25 3. Benefit monitoring and evaluation 29 133 162 ...... 4. Equipment, vehicles, and furniture a. Equipment 1,102 166 1,268 1,000 146 1,146 b. Vehicles 531 80 611 0 139 139 c. Furniture 15 40 55 ... 52 52 Subtotal (A4) 1,648 286 1,934 1,000 337 1,337 5. NLIS turnkey contract 1,777 231 2,008 2,558 33 2,590 Subtotal (A1+A2+A3+A4) 5,644 3,521 9,165 3,956 5,464 9,420 B. Recurrent Costs 1. Staff salaries ... 121 121 ... 344 344 2. Office and vehicle operation 132 846 978 ... 255 255 Subtotal (B) 132 967 1,099 ... 599 599 Total Cost (A+B) 5,776 4,488 10,264 3,956 6,063 10,019 C. Contingencies 1. Physical 579 449 1,028 ...... 2. Price 503 505 1,008 ...... Subtotal 1,081 954 2,035 ...... D. Service charges 442 ... 442 118 ... 118 Total (A+B+C+D) 7,299 5,442 12,741 4,074 6,063 10,137 … = not available, NLIS = National Land Information System. Source: Asian Development Bank.
Appendix 5 23
STATUS OF COMPLIANCE WITH LOAN COVENANTS
Status of No Covenants Reference Compliance Particular Covenants
1. The Borrower shall cause the Project to be carried out with due LA Section Complied with diligence and efficiency and in conformity with sound administrative, 4.01 (a) financial, engineering, environmental and cadastral survey and land registration practices.
2. In the carrying out of the Project and operation of the Project facilities, LA Section Largely the Borrower shall perform, or cause to be performed, all obligations 4.01 (b) complied with set forth in Schedule 5 to this Loan Agreement.
3. The Borrower shall make available, promptly as needed, the funds, LA Section Complied with facilities, services and other resources which are required, in addition 4.02 to the proceeds of the Loan, for carrying out of the Project and for the operation and maintenance of the Project facilities.
4. In the carrying out of the Project, the Borrower shall cause competent LA Section Complied with and qualified consultants and contractors, acceptable to the Borrower 4.03 (a) and the Bank, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank.
5. The Borrower shall cause the Project to be carried out in accordance LA Section Complied with with plans, design standards, specifications, work schedules, and 4.03 (b) construction methods acceptable to the Borrower and the Bank. The Borrower shall furnish, or cause to be furnished, to the Bank, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request.
6. The Borrower shall ensure that the activities of its departments and LA Section Complied with agencies with respect to the carrying out of the Project and operation 4.04. of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.
7. The Borrower shall make arrangements satisfactory to the Bank for LA Section Complied with insurance of the Project facilities to such extent and against such risks 4.05.(a) and in such amounts as shall be consistent with sound practice.
8. Without limiting the generality of the foregoing, the Borrower LA Section Complied with undertakes to insure, or cause to be insured, the goods to be imported 4.05.(b) for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.
9. The Borrower shall maintain, or cause to be maintained, records and LA Section Complied with accounts adequate to identify the goods and services and other items 4.06 (a) of expenditure financed out of the proceeds of the Loan, to disclose the use of thereof in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof.
10. The Borrower shall furnish, or cause to be furnished, to the Bank all LA Section Complied with such reports and information as the Bank shall reasonably request 4.07 (a) concerning (i) the Loan, and the expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the administration, operations and financial condition of SAGaC, LMA and other agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (v) financial and economic
24 Appendix 5
conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan.
11. Promptly after physical completion of the Project, but in any event not LA Section Complied with later than three (3) months thereafter or such later date as may be 4.07 (c) agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under this Loan Agreement and the accomplishment of the purposes of the Loan.
12. The Borrower shall enable the Bank’s representatives to inspect the LA Section Complied with Project, the goods financed out of the proceeds of the Loan, and any 4.08 relevant records and documents.
13. The Borrower shall ensure that the Project facilities are operated, LA Section Complied with maintained and repaired in accordance with sound administrative, 4.09 financial, engineering, environmental, and maintenance and operational practices.
14. It is mutual intention of the Borrower and the Bank that no other LA Section Complied with external debt owed a creditor other than the Bank shall have any 4.10 (a) priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (i) that, except as the Bank may otherwise agree, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and interest charge and any other charge on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect.
15. The provisions of paragraph (a) of this Section shall not apply to (i) LA Section Complied with any lien created on property, at the time of purchase thereof, solely as 4.10 (b) security for payment of the purchase price of such property; or (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date.
16. The term “assets of the Borrower” as used in paragraph (a) of this LA Section Complied with Section includes assets of any political subdivision or any agency of 4.10 (c) the Borrower and assets of any agency of any such political subdivision, including the Bank of Mongolia and any other institution performing the functions of a central bank for the Borrower.
Project Specific Covenants
1. Provision of Information LA Complied with The Government has given assurance that any contractors carrying schedule 5 out survey activities under project will be provided with all the para 4 necessary land attribute information free of charge.
2. Security Clearance LA Complied with The Government has given assurance that security clearance for schedule 5 aerial photography, satellite images, and access to all existing para 5 mapping and aerial photographs of relevance to cadastral survey will be provided, free of charge, for the purpose of the project.
3. Access to National Geodetic Control Framework LA Complied with MID will ensure that surveyors engaged by SAGaC will have cost-free schedule 5 access to the appropriate national geodetic control framework and para 6 database required to carry out their work under the project
4. Legislation LA Complied with The Government will establish a working committee within three schedule 5 months after loan effectiveness to study all existing land-related para 7 legislation to provide a coherent legal framework of laws, based on the Land Law and the State Immovable Property Registration Law, and
Appendix 5 25
regulations and subsidiary legislation
5. Equipment for SIPR LA Not applicable In the event that financing under the World Bank’s BELTAC Project is schedule 5 not available for the provision of equipment for the provincial para 11 Registries of SIPR, the Borrower shall make arrangements satisfactory to the Bank for the provision of the equipment, including if necessary, requesting allocation from the contingency funds under the Loan.
Financial
1. Cost Recovery LA Complied with Within two years of loan effectively the Government will submit to ADB schedule 5 but later than a proposal for cost recovery of the NLIS Through the imposition of para 8 covenanted reasonable user fee charges for data acquisition from the NLIS. The proposal will aim to ensure recovery of at least the operational costs of the NLIS within two years after the system has become fully operational. Prior to attaining such a level of cost recovery, the Government and local governments concerned will make adequate budgetary allocations for the operation and maintenance of the NLIS and local LIS, as appropriate.
2. Audited Financial Statements LA Section Complied with The Borrower shall (i) maintain, or cause to be maintain, separate 4.06 (b) accounts for the Project, (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications, experience and terms of reference are acceptable to the Bank, (iii) furnish to the Bank, as soon as available but in any event not later than nine months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including auditors’ opinion on the use of the Loan proceeds and compliance with the covenants of this loan Agreement as well as on the use of the procedures for imprest account/ statements of expenditures) all in English language; and (iv) furnish to the bank such other information concerning such accounts and financial statements and the audit thereof as the bank shall from time to time reasonably request
3. Provision of Counterparts LA Section Complied with The Borrower shall make available, promptly as needed, the funds 4.02 facilities, services and other resources which are required in addition to the proceeds of the loan, for carrying out the project and for the operation and maintenance of the project facilities.
Others
1. Established, Staffed, and Operating PMU LA Complied with SAGaC shall be project Executing Agency for the cadastral survey schedule 5 component (Component A) which shall be implemented through CSD. para 1 CSD shall be stuffed from SAGaC’s existing establishment. LMA shall be the project Executing Agency for the establishment, operation and maintenance of NLIS. (Component B)
2. Fielding of Consultants LA Section Complied with Employment of Qualified consultants and contractors under the terms 4.03 (a) and conditions acceptable to the Borrower and the Bank.
3. Project Coordination Committee LA Complied with, Within one month of the Effective Date, the PCC shall be established, schedule 5 but did not chaired by the Minister of MNE or his designate. para 2 initially meet
4. Mid-term Review LA Complied with A mid-term review shall be carried out by senior officials from MID, schedule 5 MNE, MOF and Ulaanbaatar City, in conjunction with the Bank, about para 9 three years after the Effective Date. The review shall evaluate the actual physical and financial progress of the Project, Project design,
26 Appendix 5
implementation arrangements, procurement, benefit monitoring and evaluation activities, and the initial impact of the Project, and shall recommend measures to make adjustments, if required, to the Project design and implementation arrangements for the remainder of the implementation period.
5. Benefit Monitoring and Evaluation LA Complied with Within one year of the Effective Date, the Borrower shall ensure that a schedule 5 benefit monitoring and evaluation system is established by both EAs. para 10
6. Quarterly Progress Report LA Section Complied with The borrower shall furnish or cause to be furnished to the Bank 4.07 (b) quarterly reports on the carrying out of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and with such period as the bank shall reasonably request and shall indicated, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.
7. Arranging for Insurance of the Project Facilities LA Section Complied with The Borrower shall make arrangements satisfactory to the Bank for 4.05 (a) and insurance of the project facilities to such extent and against such risks (b) and in such amounts as shall be consistent with sound practice. Without limiting the generality of the foregoing, the Borrower undertakes to ensure, or cause to be insured, the goods to be imported for the project and to be financed out of the proceeds of the loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance and indemnity shall be payable in a currency freely usable to replace or repair such goods.
8. Cooperation and Coordination LA Complied with Prior to the commencement of the second phase of Component A, the schedule 5 cooperation of the governments of all provinces, other than Tov para 3 Province, in the Project shall be confirmed through a memorandum of agreement between the Central Government and the provincial government concerned. Such memorandum of agreement shall be satisfactory to ADB in form and substance.
9. The Borrower shall ensure that the Land Management Departments of LA Complied with Ulaanbaatar City and each of the provinces shall provide all necessary schedule 5 land attribute information, free of charge, to the contractors carrying para 4 out the survey and mapping activities under the Project to create the cadastral database. Prior to the commencement of cadastral survey activities, the Borrower shall enter into a memorandum of agreement with each of the governments of Ulaanbaatar City and the provinces which shall specify the duties and responsibilities of SAGaC and the respective Land Management Departments with regard to the acquisition and procurement of spatial and textual attribute data relating to each land parcel surveyed.
ADB = Asian Development Bank, CSD = Cadastral Survey Division, EA = executing agency, LA = loan agreement, LIS = Land Information System, LMA = Land Management Agency, MID = Ministry of Infrastructure Development, MNE = Ministry of Nature and Environment, NLIS = National Land Information System, PMU = project management unit, PCC = project coordination committee, SAGaC = State Agency for Geodesy and Cartography. Source: Asian Development Bank, based on information provided by the project management unit.
Appendix 6 27
LIST OF TRAINING ORGANIZED WITHIN THE FRAMEWORK OF THE CADASTRAL SURVEY AND LAND REGISTRATION PROJECT
Training Duration Number of № Year Subject Venue Participants (in days) Participants 1 2002 Practical training on SAGaC Land specialists 14 21 arc view, AutoCad office from 21 provincial program application land offices 2 2003 Training on ALAGaC Land managers 7 39 legalities of land office from 21 provinces affairs 3 2003 Training on ALAGaC Land specialists 7 21 “Parcels office from 21 provinces documentation and tax payment procedure for cadastral survey and land registration” 4 2003 Practical training on ALAGaC Specialists of 14 8 GeoMedia software office geodesy and and cartography Photogrammetry division workstation conducted by Integraph 5 2004 Working on the ALAGaC Economic entities 3 27 cadastre collect office that are entitled to software program carry out cadastral survey and land registration 6 2005 Training on ALAGaC Land managers of 7 30 legalities of land office 21 provincial land affairs offices 7 2005 Training on Capital ALAGaC Information 7 21 City program office database specialists of the capital city and districts land office 8 2006 Parcels Academy of Land specialists of 7 42 documentations Administration 21 provincial land and tax payment Management offices procedure for cadastral survey and land registration 9 2006 Working on Academy of Land specialists of 15 30 Taxeometer and its Administration 21 provincial land related program Management offices supplied by SOKKIA for land offices 10 2006 Working on Orkhon, Cadastral 7 30 Taxeometer and its Zavkhan, specialists of 21 related program Bat-Undur, provincial land and Khentii offices provinces 11 2006 Structure of the Orkhon Land specialists 10 100 information Province from five provinces
28 Appendix 6
Training Duration Number of № Year Subject Venue Participants (in days) Participants database and and soum procedure working land managers of on the information the central region database and ArcGIS program 12 2007 Training on working Darkhan-Uul Land specialists 7 80 with software province from five provinces program of center and soum land cadastral survey offices of the and mapping central region 13 2008 Training on working Khandgait, Land specialists 14 105 with software Ulaanbaatar and managers program of from seven cadastral survey province and soum and mapping land offices of the western Gobi regions 14 2009 User acceptance ALACGaC Specialists of 14 40 testing, training on cadastre geodesy Oracle, key expert and cartography as training, training on well as land ESRI (GIS management Software Company) divisions and land office of the capital city 15 2009 Train the trainers Bishrelt Specialists of 10 75 on “NLIS software Hotel, cadastre geodesy and practical use” Ulaanbaatar and cartography as well as land management divisions and land office of the capital city and specialists, database specialists from 21 provinces 16 2009 NLIS data Dornogovi, Land specialists 7 191 structure, Khentii, from 12 provinces collection, Darkhan-Uul and soum land maintenance, aimag managers of the editing, and central, western, updating and eastern Gobi regions 17 NLIS data Arkhangay, Land specialists 7 200 structure, Khovd from nine collection, province provinces and maintenance, centers soum land editing, and managers of updating western and Khangay regions Total Participants 1,060 ALACGaC = Agency of Land Affairs, Construction, Geodesy and Cartography; ALAGaC = Agency of Land Affairs, Geodesy and Cartography; ArcGIS = a suite consisting of a group of geographic information system, NLIS = National Land Information System; SAGaC = State Agency for Geodesy and Cartography. aimag - provincial administrative unit in Mongolia, soum - administrative subunit of aimag. Source: Agency of Land Affairs, Construction, Geodesy and Cartography. 2010. Borrower’s Completion Report. Ulaanbaatar
Appendix 7 29
FULL LIST OF PROCUREMENT CONTRACTS
Table A7: List of Works, Services, and Equipment Procurement Contracts
Contract Date of Amount Contract Procurement PCSS Supplier Name ($) Award Modes No. Sokkia Singapore 185,600.00 19 Sep 2002 LIB 0002 Geomaster 36,475.00 16 Sep 2002 NCB 0003 MONMAP 47,433.00 16 Sep 2002 NCB 0004 MM Engineering 62,428.00 16 Sep 2002 NCB 0005 Aerogeodesy Share Holding Company 34,323.00 16 Sep 2002 NCB 0006 Khet 57,051.00 16 Sep 2002 NCB 0007 Aero Asahi Corporation 224,223.00 19 Sep 2002 ICB 0008 Integraph Greater China 613,000.00 18 Dec 2002 ICB 0010 Nomin Holding 69,126.26 20 Aug 2003 LIB 0011 Aerogeodesy Share Holding Company 36,292.00 15 Sep 2003 NCB 0013 Geomaster 48,935.00 15 Sep 2003 NCB 0014 Geomaster 53,705.55 15 Oct 2003 NCB 0015 MONMAP 44,439.00 15 Sep 2003 NCB 0016 Khet 47,583.59 15 Sep 2003 NCB 0017 Moncan Consulting 50,130.00 15 Sep 2003 NCB 0018 GEOCAD 37,997.45 15 Oct 2003 NCB 0019 MONMET Engineering 59,553.00 9 Jul 2004 NCB 0022 GEOID 58,900.00 9 Jul 2004 NCB 0023 Geomaster 59,671.46 9 Jul 2004 NCB 0024 GEOCAD 56,995.00 9 Jul 2004 NCB 0025 Aerogeodesy Share Holding Company 57,175.00 9 Jul 2004 NCB 0026 Khet 59,900.46 9 Jul 2004 NCB 0027 MONMET Engineering 60,560.00 9 Jul 2004 NCB 0028 MONMET Engineering 47,261.00 25 Feb 2005 NCB 0032 GEOCAD 47,230.00 25 Feb 2005 NCB 0033 GEOSET 45,045.76 25 Feb 2005 NCB 0034 Aerogeodesy Share Holding Company 27,458.00 25 Feb 2005 NCB 0035 Geomaster 25,318.10 25 Feb 2005 NCB 0036 Moncan Consulting 26,489.20 25 Feb 2005 NCB 0037 Pasco Corporation 199,480.00 15 Jul 2005 LIB 0040 Sokkia Singapore 201,652.00 28 Feb 2006 LIB 0042 Aerogeodesy Share Holding Company 78,100.00 4 May 2006 NCB 0044 MONMAP 55,499.99 4 May 2006 NCB 0045 Geomaster 79,907.84 4 May 2006 NCB 0046 GEOID 65,232.00 4 May 2006 NCB 0047 Aerogeodesy Share Holding Company 76,845.50 4 May 2006 NCB 0048 GEOCAD 79,900.00 4 May 2006 NCB 0049 MONMAP 44,499.00 4 May 2006 NCB 0050 GEOCAD 78,800.00 21 Mar 2007 NCB 0056 GEOSET 20,125.00 20 Mar 2007 NCB 0057 GEOID 31,900.00 5 Jul 2007 NCB 0059 RMSI PVT 2,561,938.00 9 Jul 2007 ICB 0060 GEOSET 48,810.00 5 Jul 2007 NCB 0061 GEOID 63,000.00 5 Jul 2007 NCB 0062 GEOCAD 54,700.00 5 Jul 2007 NCB 0063 Asmemon 63,249.00 5 Jul 2007 NCB 0064 Geomaster 69,654.45 5 Jul 2007 NCB 0065 Aerogeodesy Share Holding Company 66,859.80 5 Jul 2007 NCB 0066 Moncan Consulting 35,280.00 5 Jul 2007 NCB 0067 MONMET Engineering 64,497.16 5 Jul 2007 NCB 0068 ATTP 35,678.00 5 Jul 2007 NCB 0069 Geomaster 89,648.70 12 Nov 2007 NCB 0072 MONMET Engineering 93,736.23 12 Nov 2007 NCB 0073 Geomaster 92,333.88 12 Nov 2007 NCB 0074
30 Appendix 7
Contract Date of Amount Contract Procurement PCSS Supplier Name ($) Award Modes No. GEOID 94,800.00 12 Nov 2007 NCB 0075 Asmemon 74,699.90 12 Nov 2007 NCB 0076 Aerogeodesy Share Holding Company 93,400.30 12 Nov 2007 NCB 0077 Top Survey 74,299.00 12 Nov 2007 NCB 0078 GEOCAD 92,034.00 12 Nov 2007 NCB 0079 GEOSET 86,190.00 12 Nov 2007 NCB 0080 New Element 25,071.00 1 Sep 2008 IS 0088 Masternet 18,070.00 29 May 2008 DC 0090 GEOCAD 170,000.00 27 Apr 2009 NCB 0091 MONMET Engineering 178,294.11 27 Apr 2009 NCB 0092 Geomaster 175,815.00 27 Apr 2009 NCB 0093 GEOID 178,800.00 27 Apr 2009 NCB 0094 GEOSET 176,750.00 27 Apr 2009 NCB 0095 Asmemon 179,058.19 27 Apr 2009 NCB 0096 JEIL Bayanbogd 165,111.00 15 Jul 2009 NCB 0097 Top Survey 179,004.00 15 Jul 2009 NCB 0098 TOP CAD 115,960.00 15 Jul 2009 NCB 0099 ATTP 168,018.00 15 Jul 2009 NCB 0100 Aerogeodesy Share Holding Company 163,807.00 15 Jul 2009 NCB 0101 Moncable 2,670.00 24 Sep 2009 DC 0102 DC = direct contracting, ICB = international competitive bidding, IS = shopping, LIB = limited international bidding, NCB = national competitive bidding, PCSS = procurement contract summary sheet. Source: Asian Development Bank loan financial information system.
Appendix 8 31
QUANTITATIVE ASSESSMENT OF PROJECT OUTPUTS
1. The following tables present the quantitative outputs from component A of the project which provided digitized base maps derived from aerial photography and satellite imagery, and which were verified using Global Positioning System (GPS) and total station measurement. Under phase 1 of component A, 880 sheets of orthophoto mapping and digital terrain model were delivered at the scale of 1:1,000 covering over 88,000 hectares (ha) of settled areas; under phase 2, approximately 980 sheets of orthophoto maps and digital terrain model at the scale of 1:1,000 were delivered, covering 24,600 ha of settled areas.
Table A8.1: Outputs of the Aerial Photography and Digital Orthophoto Mapping Work for Phase 1 Settlements No. Settled Area Area (ha) 1. Ulaanbaatar city 70,000 2. Zuunmod (center of Tuv aimag) 3,176 3. Baganuur district (remote district of Ulaanbaatar city) 7,065 4. Nalaikh district (remote district of Ulaanbaatar city) 5,135 5. Bagakhangai district (remote district of Ulaanbaatar city) 2,625 Total Area 88,001 ha = hectare, No. = number. Source: Asian Development Bank estimates.
Table A8.2: Outputs of the Aerial Photography and Digital Orthophoto Mapping Work for Phase 2 Settlements No. Settled Area Area (ha) 1. Erdenet (center of Orkhon aimag) 6,400 2. Darkhan city (center of Darkhan-Uul aimag) 6,800 3 Bulgan province (center of Bulgan aimag) 1,500 4. Sukhbaatar (center of Selenge aimag) 5,200 5. Zuun Kharaa (soum center of Selenge aimag) 4,700 Total Area 24,600 ha = hectare, No. = number. Source: Asian Development Bank estimates.
Table A8.3: Outputs of the Satellite Imaging and Digital Orthophoto Mapping Work for Phases 1–3 Cropland Areas at a Scale of 1:50,000 Phase Area Covered Sheets Location Phase 1 25,000 km2 77 Tuv province and Ulaanbaatar city Phase 2 42,000 km2 96 Darkhan-Uul, Orkhon, Selenge, and Bulgan provinces Phase 3 433,600 km2 271 Khangai and western provinces (16 provinces) km2 = square kilometer. Source: Asian Development Bank estimates.
In total, 364,117 land parcels covering 1,549,158 ha in Ulaanbaatar city, 21 provincial centers, 329 soums (administrative subunit of aimag), and 55 settled areas have been recorded by the project.
2. Increases in government revenues as a result of the increased number of land transactions in part due to the project are shown in Table A8.4.
32 Appendix 8
Table A8.4: Increase in Annual Land Fee Payments, 2001–2009 (MNT million) Annual Revenue from Annual Revenue from Total Year Land Fee Property Tax 2001 5,570 1,763 7,333 2004 11,795 5,589 17,384 2005 14,452 6,624 21,076 2006 15,780 6,760 22,540 2007 20,072 8,137 28,209 2008 25,543 9,066 34,609 2009 29,472 10,175 39,647 Source: Information provided by the Agency of Land Affairs, Geodesy and Cartography.
3. Training achievements. Training was carried out for a total of 1,060 trainees through 17 modules and using a total of more than 8,000 training days (Table A8.5).
Table A8.5: Training Programs and Numbers Trained
Numbers No. Years Subjects Venues Participants Duration Trained 1. 2002– Arc view, AutoCad, SAGaC and 21 provincial 7–14 42 2004 cadastre software, and ALAGaC land specialists days digital applications offices and managers and information database specialists 2. 2004– Working with software ALAGaC 21 provincial 3–14 35 2006 programs for cadastral offices land specialists survey and mapping and managers 3. 2003– Legal affairs, parcels ALAGaC Land and 7–15 192 2006 documentation, tax offices and cadastre days payment procedures, Academy of specialists from land registration, and Administration 21 provinces and taxeometer program Management economic entities entitled to carry out cadastral survey and land registration 4. 2006– Information database ALAGaC Land specialists 7–14 325 2008 structure, software offices and and managers days program of cadastral provincial from 21 mapping, and user offices provinces acceptance testing 5. 2009 NLIS data structure, 21 provincial Land specialists 7 days 391 collection, centers and soum land maintenance, editing, managers of all and updating 21 provinces 6. 2009 Train the trainers on Ulaanbaatar Specialists in 10 75 NLIS software and cadastre, days practical use geodesy, and cartography and land management Total 1,060 ALAGaC = Agency of Land Affairs, Geodesy and Cartography; NLIS = National Land Information System; No. = number; SAGaC = State Agency for Geodesy and Cartography. Source: Asian Development Bank estimates.
Appendix 9 33
QUANTITATIVE ASSESSMENT OF OVERALL PROJECT PERFORMANCE
Criteria Assessment Rating (0-3) Weights (%) Weighted Relevance Relevant 2 20 0.4 Effectiveness Less Effective 1 30 0.3 Efficiency Less Efficient 1 30 0.3 Sustainability Likely 2 20 0.4 Overall Rating: Successful 1.4 Notes on Rating System: Rating 3 = Highly Relevant/Highly Effective/Highly Efficient/Most Likely 2 = Relevant/Effective/Likely 1 = Partly Relevant/Less Effective/Less Efficient/Less Likely 0 = Irrelevant/Ineffective/Inefficient/Unlikely
Rating greater than 2.7 = Highly Successful Rating between 1.6 and less than 2.7 = Successful Rating between 0.8 and less than 1.6 = Partly Successful Rating below 0.8 = Unsuccessful