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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 43032-ME PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF EURO 11 MILLION (US$16.2 MILLION EQUIVALENT) TO MONTENEGRO FOR A LAND ADMINISTRATION AND MANAGEMENT PROJECT Public Disclosure Authorized November 10,2008 Sustainable Development Unit Southeast Europe Country Unit Europe and Central Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective August 3 1,2008) Currency Unit = EURO US$1.47 = €1.0 US$1 = €0.68 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS BEEPS Business Environment and Enterprise Improvement Surveys CPS Country Partnership Strategy Dept UP Department of Urban Planning DUP Detailed Urban Plan EA Environmental Assessment EMP Environmental Management Plan EU European Union FIAS Foreign Investment Advisory Service GIS Geographic Information System GOM Government of Montenegro GTZ German Technical Assistance Agency GUP General Urban Plan ICT Information Communication Technology MED Ministry of Economic Development MOF Ministry of Finance NSP National Spatial Plan PAC Public Awareness Campaign PCU Project Coordination Unit PSC Project Steering Committee READ Real Estate Administration Department REC Real Estate Cadastre RPF Resettlement Policy Framework TSU Technical Services Unit UNDP United Nations Development Program Vice President: Shigeo Katsu Country Director: Jane Armitage Sector Manager: John Kellenberg Task Team Leader: Gavin P. Adlington FOR OFFICIAL USE ONLY MONTENEGRO Land Administration and Management Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 A . Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement .......................................................................................... 2 C . Higher level objectives to which the Project contributes .................................................... 2 I1. PROJECT DESCRIPTION.............................................................................................. 2 A . Lending instrument .............................................................................................................. 2 B. Program objective and phases ............................................................................................. 2 C . Project development objective and key indicators .............................................................. 2 D. Project components .............................................................................................................. 3 E. Lessons learned and reflected in the Project design., .......................................................... 4 F. Alternatives considered and reasons for rejection ............................................................... 4 I11. IMPLEMENTATION ....................................................................................................... 4 A . Partnership arrangements .................................................................................................... 4 B. Institutional and implementation arrangements .................................................................. 5 C . Monitoring and evaluation of outcomeshesults .................................................................. 6 D. Sustainability ....................................................................................................................... 6 E. Critical risks and possible controversial aspects ................................................................. 7 F. Loadcredit conditions and covenants ................................................................................. 8 IV. APPRAISAL SUMMARY .............................................................................................. 10 A . Economic and financial analyses ....................................................................................... 10 B . Technical ........................................................................................................................... 11 C . Fiduciary ............................................................................................................................ 13 D. Social ................................................................................................................................. 14 E. Environment ...................................................................................................................... 15 F. Safeguard policies .............................................................................................................. 16 G. Policy Exceptions and Readiness ...................................................................................... 17 This document has a restricted distribution and may be used by recipients only in the performance of their official duties . Its contents may not be otherwise disclosed without World Bank authorization . Annex 1: Country and Sector or Program Background.......................................................... 18 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................. 23 Annex 3: Results Framework and Monitoring ......................................................................... 24 Annex 4: Detailed Project Description ...................................................................................... 28 Annex 5: Project Costs ................................................................................................................ 36 Annex 6: Implementation Arrangements .................................................................................. 37 Annex 7: Financial Management and Disbursement Arrangements ..................................... 42 Annex 8: Procurement Arrangements....................................................................................... 50 Annex 9: Economic and Financial Analysis .............................................................................. 60 Annex 10: Safeguard Policy Issues ............................................................................................. 70 Annex 11: Project Preparation and Supervision...................................................................... 72 Annex 12: Documents in the Project File .................................................................................. 74 Annex 13: Statement of Loans and Credits............................................................................... 75 Annex 14: Country at a Glance .................................................................................................. 76 Map IBRD 34825 MONTENEGRO LAND ADMINISTRATION AND MANAGEMENT PROJECT PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSSD Date: November 10,2008 Team Leader: Gavin P. Adlington Country Director: Jane Armitage Sectors: Housing finance and real estate Sector ManagedDirector: John V. Kellenberg markets (SO%);Sub-national government administration (30%);Central government administration (20%) Themes: Land administration and management (P);Municipal governance and institution building (S) Project ID: P 106906 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan [XI Loan [ ] Credit [ 3 Grant [ 3 Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (e): 11 .OO Pronosed terms: FSL Source Local Foreign Total Borrower 11.49 0.00 11.49 International Bank for Reconstruction and 11.00 0.00 11.00 Development Total: 22.49 0.00 22.49 Borrower: Ministry of Finance Stanka Dragojevica 2 8 1000 Podgorica Montenegro Fax: 382 81 224 450 Responsible Agency: Ministry of Economic Development (MED) Rimski trg 46 8 1000 Podgorica Montenegro Real Estate Administration Department (READ) Oktobarske Revolucije br PC Celebic (V sprat) 81000 Podgorica Montenegro Fax: 382 81 444 004 Estimated disbursements (Bank FY/€m) FY 2009 2010 2011 2012 2013 2014 4nnual 0.20 0.80 2.00 3.50 3.50 1.oo Zumulative 0.20 1.00 3.00 6.50 9.50 11.00 Expected effectiveness date: January 30, 2009 Expected closing date: April 30, 20 14 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Ref: PAD I.C. Does the project require any exceptions from Bank policies? Ref: PAD IKG. [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [XINO Ref..# PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref:.I PAD IKG. Project development objective Ref: PAD II.C., TechnicalAnnex 3 To improve the efficiency of permitting and the property registration system. The beneficiaries of the investment will be: (a) the public living within the municipalities as more order is brought to the built environment; and (b) the business community as more transparent and efficient processes for the establishment and operations of a business are facilitated. By the end of the project it should be possible for the public to easily access information about the processes required
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