Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 52392 - XK PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 4.3 MILLION Public Disclosure Authorized (US$6.74 MILLION EQUIVALENT) AND A PROPOSED GRANT IN THE AMOUNT OF SDR 3.5 MILLION (US$5.5 1 MILLION EQUIVALENT) TO THE REPUBLIC OF KOSOVO Public Disclosure Authorized FOR A REAL ESTATE CADASTRE AND REGISTRATION PROJECT (RECAP) December 22,2009 Sustainable Development Department 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 September 30,2009) Currency Unit = USD SDRl = US$1.58437 US$l.OO = SDR0.6311 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS BCC Building Cadastre Construction BETA Business Environment Technical Assistance BP Business Plan CBAK Central Bank Authority of Kosovo CORN Continuous Operating Reference Network CPO Commitment and Payment Orders CR Cadastre Reconstruction DffD United Kingdom Department for International Development EA Environmental Assessment EMP Environment Management Plan EU European Union EULEX European Union Rule of Law Mission in Kosovo GOK Government of Kosovo GTZ German Technical Assistance Agency HPCC Housing and Property Claims Commission HPD Housing and Properties Directorate IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IFRs Interim Financial Report IFS Interim Financial Statement IMC Inter-Ministerial Land Administration Committee IMF International Monetary Fund INSPIRE Infrastructure for Spatial Information in the European Community IP Implementation Plan IPRR Immovable Property Rights Registry ISDS Integrated Safeguard Data Sheet KCA Kosovo Cadastre Agency KCDS Kosovo Cadastre Development Strategy KCB Kosovo Consolidated Budget KCLIS Kosovo Cadastre Land Information System KEK Kosovo Electric Corporation FOR OFFICIAL USE ONLY KPA Kosovo Property Agency KPCC Kosovo Property Claims Commission M&E Monitoring and Evaluation MAFRD Ministry of Agriculture, Forestry and Rural Development MCO Municipal Cadastre Offices MESP Ministry of Environmental and Spatial Planning MLG Ministry of Local Government MEF Ministry of Economy and Finance MOU Memorandum of Understanding MPA Ministry of Public Administration OAG Office of the Auditor-General OP Operations Policy POM Project Operations Manual OPR Operation Procurement Review PAC Public Awareness Campaign PAD Project Appraisal Document PCO Project Coordination Office PDO Project Development Objective PID Project Information Document PIFC EU Public Internal Financial Control PISG Provisional Institutions of Self-Government POE Publicly Owned Enterprise PPA Public Procurement Agency QC Quality Control QER Quality Evaluation Review RECAP Real Estate Cadastre and Registration Project sc Steering Committee Sida Swedish International Development Cooperation Agency SIL Specific Investment Loan SOEs State Owned Enterprises SRSG Special Representative of the Secretary-General for Kosovo SSP Status Settlement Proposal TA Technical Assistance UN United Nations UNMIK United Nations Mission in Kosovo WebGIS Web-based Geographical Information System Vice President: Philippe Le Houerou Country Director: Jane Armitage Country Manager Ranjit Nayak Sector Manager: John Kellenberg Task Team Leader: Cora Shaw 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. KOSOVO Kosovo Real Estate Cadastre and Registration 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 ................................................................................................. 3 A . Lending instrument ............................................................................................................. 3 B. Project development objective and key indicators.............................................................. 3 C . Project components ............................................................................................................. 3 D. Lessons learned and reflected in the project design ............................................................ 5 E. Alternatives considered and reasons for rejection .............................................................. 6 I11. IMPLEMENTATION...................................................................................................... 6 A . Partnership arrangements., .................................................................................................. 6 B . Institutional and implementation arrangements .................................................................. 7 C . Monitoring and evaluation of outcomeshesults .................................................................. 7 ... D. Sustainability....................................................................................................................... 8 E. Critical risks and possible controversial aspects ................................................................. 9 F . Loadcredit conditions and covenants ............................................................................... 11 IV. APPRAISAL SUMMARY ............................................................................................. 12 A . Economic and financial analyses ...................................................................................... 12 B. Technical ........................................................................................................................... 13 C . Fiduciary ........................................................................................................................... 14 D. Social ................................................................................................................................. 15 E. Environment...................................................................................................................... 15 F. Safeguard policies ............................................................................................................. 16 G. Policy Exceptions and Readiness ...................................................................................... 16 Annex 1: Country and Sector or Program Background ......................................................... 17 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 22 Annex 3: Results Framework and Monitoring........................................................................ 23 Annex 4: Bank Lending and Implementation Support/Supervision Processes .................... 26 Annex 5: Project Costs ............................................................................................................... 31 Annex 6: Implementation Arrangements ................................................................................. 32 Annex 7: Financial Management and Disbursement Arrangements ..................................... 36 Annex 8: Procurement Arrangements ...................................................................................... 46 Annex 9: Economic and Financial Analysis ............................................................................. 56 Annex 10: Safeguard Policy Issues ............................................................................................ 62 Annex 11: Legal Framework ..................................................................................................... 63 Annex 12: Social Risk Management.......................................................................................... 69 Annex 13: Project Preparation and Supervision ..................................................................... 71 Annex 14: Country at Glance ..................................................................................................... 72 Annex 15: Documents in the Project File ................................................................................. 74 Annex 16: Statement of Loans and Credits.............................................................................. 75 Annex 17: Map............................................................................................................................ 76 KOSOVO REAL ESTATE CADASTRE AND REGISTRATION PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSSD Date: December 22,2009 Team Leader: Cora Melania Shaw Country Director: Jane Armitage Sectors: Central government administration Sector Manager John V. Kellenberg (40%);Sub-national government administration (40%);Law and justice (20%) Themes: Land administration and management (100%) Project ID: P101214 Environmental category: Partial Assessment Lending Instrument: Specific Investment Loan Joint