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POST VISIT REPORT
May 2015
Fact Finding Mission on Challenges and Best Practices
of Georgia Doing Business Improvement Initiatives
and Istanbul Municipality Courtesy Visit
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Contents
1.0 Background
1.1 Current Performance 3
1.2 Georgia’s Impressive Progress in Doing Business 3
1.3 Malaysia Scenario
4
2.0 Best Practices Visits
2.1 Data Exchange Agency
6
2.2 National Agency of Public Registry
8
2.3 Civil Registry Department
13
2.4 Tbilisi Municipality
25
2.5 State Procurement Agency
29
2.6 Rustavi Service Agency
33
2.7 Lilo Economic Zone of Clearance
34
2.8 Tbilisi Public Service Hall
36
2.9 Istanbul Metropolitan Municipality
39
3.0 Concluding Remarks
3.1 Creating One Stop Shops
41
3.2 Integrating Service Innovation 41
The Delegates
43
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1.0 BACKGROUND
Members of the Malaysian delegation are from the implementing agencies, professional
companies and policy makers. The mission aims to study and observe recent
developments and best practices in particular areas of interest, that of Dealing
Construction Permits (DCP) and Registering Property (RP) methodology frameworks in
Georgia.
For DCP the mission focused on how local authority (LA) in Tbilisi manages their online
development approvals; communication between LA and technical agencies; granting of
approvals by the utility providers; township planning; and gaining better understanding on
how professionals deal with regulators in Tbilisi. The study will measure procedure, time
and cost to construct a building. It covers all procedures required to construct simple
buildings – from planning submissions until the building is ready for occupancy, time
approval application and cost of all fees. For Registering Property, it was to benchmark on
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how Georgia manages their registration with single procedure and requires one day to for
approval.
1.1 Current Performance
Malaysia vs Georgia: Performance on Dealing with Construction Permits
Malaysia vs Georgia: Performance on Registering Property
1.2 Georgia’s Impressive Progress in Doing Business
Georgia’s impressive progress in improving business climate has been well documented in
a number of international indices. Once ranked number 112 on the World Bank’s Doing
Business (DB) survey, bold reforms to Georgia’s business climate catapulted it to 11th
place in 2010. Its commitment to aggressive reforms in improving the regulatory
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environment for entrepreneurs has allowed Georgia to close the gap with the top
performers in some areas; underpinned what the World Bank calls an “unprecedented”
climb in the history of the survey. The latest ‘Doing Business 2015: Going Beyond
Efficiency’ report saw Georgia ranked first in the region and took 15th place out of 189
countries. Georgia is amongst the leaders in Registering Property – 1st place and 3rd in
Dealing Construction Permits. Indeed no other country has made so many deep reforms in
so many different areas so consistently. Georgia has undertaken changes in a few years
that most other countries would have taken a generation and has earned a reputation as
one of the world’s great reformers.
1.3 Malaysia’s Scenario
PEMUDAH, or the Special Task Force to Facilitate Business, was established in 2007 to
enhance public service delivery and improve the ease of doing business in Malaysia. In
these eight years, PEMUDAH has successfully introduced many initiatives to enhance the
business environment in the country. The PEMUDAH Focus Group on Dealing with
Construction Permits (FGDCP) has been working together with both the public and
private stakeholders including building professionals and experts to identify issues and
challenges, propose winning solutions and implement various improvement initiatives.
Among the engagement sessions include workshops, benchmarking missions, public
consultations as well as a special engagement with an expert from the World Bank.
Malaysia’s initiatives are unique to certain countries as it promotes collaboration-
innovation. In the case of construction permits, strategic engagements are established
with 5 ministries and 15 agencies to produce the OSC 1 Submission framework.
The OSC 1 Submission has been replicated nation - wide based on Kuala Lumpur’s best
practices. Improvements achieved in Kuala Lumpur were incorporated into the new OSC
3.0 model. Making headway with OSC 3.0 is significant step towards driving an effective,
efficient and transparent building regulatory system as all parties involved could reap the
benefits of having a simpler procedure in place and speedier approval process. Building
Information Modelling is also being developed to facilitate and speed up the process of
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smart checking; while a healthy public-private competitive environment for the dual
approval system would be created. The KLisBEST - another lane for complex and high risk
projects in Kuala Lumpur has been developed to streamline procedures and improve
transparency on permitting requirements; enhance efficiency of all parties involved;
reduce compliance costs to investors, attract more investment and increase employment
opportunities.
The online system - the KL TRAX to monitor construction permit applications from the
date of submission until issuance of Certificate of Completion and Compliance (CCC)
including updating and checking application status for both parties (local
authority/agencies and private sectors) has helped enhanced productivity performance
with reduction in time taken, integration of all agencies and business on a single
transparent platform and One-stop Non-stop service.
As for Registering Property, Malaysia attained a DTF score of 71.16 in the DB 2015 with
a rank of 75 out of 189 economies. The ability to register and transfer land ownership is
central to most economic activities and therefore has to be efficiently and transparently
conducted. Among the objectives of the PEMUDAH Focus Group on Registering
Property is to improve the service delivery of land administration in Kuala Lumpur. The
initiative done in Kuala Lumpur has been expanded to other Land Offices in Malaysia.
The Land Offices have implemented the One-Day-One-Piece-Flow project to streamline
Property Transfer transaction. This very important initiative is to move towards
simplified and standardised forms for land-related transactions since Malaysia has only
one National Land Code. The Focus Group is currently reviewing the National Land Code
1965 to ensure that land dealing procedures are safeguarded from fraud. In addition to
investing in an electronic land administration system, the Department of Land and Mines
proactively revises work processes and procedures in land offices as well as reforming
policies to strengthen the land administration system. A web-based e-Consent form has
been introduced as a pilot programme which will further facilitate approvals for
transfers.
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In the Doing Business 2016, the indicator set will be expanded to cover the reliability,
transparency and geographic coverage of land administration systems as well as dispute
resolution for land issues. Ensuring the reliability of information on property titles is a
crucial function of land administration systems. Thus one of this mission’s objectives is
to benchmark on how Georgia manages its registration with single procedure and
requiring only one day for approval. Indeed Georgia has made the most significant
improvements towards strengthening its legal institutions by making legal and
administrative services simple, transparent and inexpensive.
2.0 BEST PRACTICES STUDY
Day 1: 16 March 2015
16 March Data Exchange (DEA) Agency of the Ministry of Justice of Georgia
10.00 - 12.30pm
E-government development in Georgia
Georgian Governmental Network Project
Data Exchange Infrastructure and e-government future
architecture
Citizen Portal
Register of Registers
Open Data project
Trade Facilitation System
Information Security Policy & implementation
CERT.GOV.GE
2.1 Data Exchange (DEA) Agency
The priority of Tbilisi City Hall is to develop projects offering citizens various enhanced and
flexible services. In order to improve the information flow management, the
documentation processing program was created in 2007-2008 in the City Hall, for
municipal and public services. The program provided simple and effective administration
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for the entire correspondence within one system, but it did not focus on optimization of
the administrative processing in the particular municipal and public services. The software
for processing documentation in the Service was created with focus on its specifics:
Property Management Agency, LEP Land Architecture Service of Tbilisi, LEPL.
The Architecture Service of Tbilisi provides services for the persons involved in
construction activity issues the land use terms and the construction permits exercises
entire public authority over architectural/construction field from the point of view of
customer service with the following priorities of improvement of service, simplification
of correspondence administration and information publicity and accessibility, endeavors
to adopt and develop new information technologies in order to effectively process the
documentation.
The Architecture Service of Tbilisi was founded on Dec. 31, 2008 as Legal Entity of Public
Law, after having been a municipal service, a structural entity in Tbilisi City Hall during the
previous period. Up to the end of 2011 two options of processing the applications were
provided for the customers: documentary correspondence: 80% and on-line filing 20%.
Having adopted new technologies in 2009-2011, the Service united correspondence
within the united Geographic Information System and provided its publicity .This was the
optimal structure in the initial period, providing collecting relevant information in the GIS
data base and improving services.
However constantly growing amount of correspondence posed a number of problems
such as number of applications, to meet deadlines, archiving/filing, requirement of
additional human resources and failures of interactive map functioning. The Service
developed rebranding program for the existing system namely the United Automated
Control system of Information Flow. The system develops existing priorities with 100%
online administration of correspondence and is focused on customer service
improvement and united automated control of information flow. The system provides
automated registration of applications, displaying application immediately after
registration on the map (publicity), automated distribution of registered applications to
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workers, automated navigation of application within the service, possibility of
participation in the online council/committee consideration, automated preparation and
publicity of council/committee protocols, automated generation of the decision ready for
sending to applicant, simple correction of errors in documentation, perfect control of
administrative proceeding dates and deadlines, sending decision immediately to
applicant, uniqueness of the decision and protection against falsification, solving analytic
and statistic tasks, flexible relations with different public institutions, and connecting with
different public institutions and obtaining necessary information. Payment can be made
from home for constructing duties, duties for works on cultural monuments and
accelerated service fee.
Day 1: 16 March 2015
16 March National Agency of Public Registry of the Ministry of Justice of
Georgia
3.00 - 5.30pm
Property Registry
Business Registry
Governmental GIS @ Cadastral Data
Document management system for public sector
2.2 National Agency of Public Registry (NAPR)
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2.2.1 Land Administration System Establishment in Georgia
In mid 90s: free market economy, privatization, property ownership rights established and
property market development. Until 2000: Land Administration system development
reform: simplification of registration procedures, terms, fees; improvement of geo
database; and 2014-2020: full coverage of the country, with data accuracy and quality
improved, reliable Land Information System established (NSDI established ) , thus
enhancing confidence.
2.2.2 Simplified Registration Service
Its customer-oriented registration system is based on “One-stop-shop” principle with the
following features; centralised registration and cadastre system and decentralized
customer service (delivering services by the authorized users), simplified property
registration procedure and voluntary notarization, electronic application and receipt of
the abstract, cadastral plan and other documents, availability of distance registration
service and cadastral map of Georgia.
The cadastral survey work is done by the private sector. NAPR is responsible for the
maintenance of cadastral data. Centralised processing of cadastral data via internet, data
storing/processing uses ESRI ARCGIS software, and GIS operator inserts data in SDE server
makes situational map, exports it in PDF format and uploads it on PDF servers.
Registration is through web-based software with front-end software (filing applications,
issuance of extracts) and back-end software ENREG (registration of entities). The Front-
end program provides for information on all registered applications, registration
documents attached thereto, decisions made by the registration authority. At the same
time the program prints out a prepared document – extract, decision, information, e-
copies of documents kept in the archive; while registration is done by back officers -
registrars; both programs are connected and, accordingly, one can also get information on
registered data via front-end program. Thus public access to cadastral data is just by
submitting online application to get the cadastral plan. There is also effective data sharing
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between institutions: Notary Chamber of Georgia, Public Service Development Agency,
Revenue Service and National Bureau of Enforcement. The creation of Addressing System
of unified address registry (2011–2013) incorporates the description of streets/roads,
inventory and numbering of immovable property, adoption of addressing standards,
creation of unified electronic database, linking immovable property-related information to
civil registry data, partner organisations, self-Government bodies of Georgia Civil Registry
Agency, contractors , private surveying companies and donor organization (USAID).
For Starting Business, it is facilitated by access to charter of all legal forms via NAPR
website, on-line access of Tax Department to NAPR database, reports about transactions
sent to TD in every five minutes, voluntary notarization of agreements, public access to
any registration document and a centralised system.
2.2.3 Georgia In retrospect
Individual property and owning land was difficult in Soviet Union era. Most of the
property belonged to the state. In any economy, economic development can
hardly be achieved without private ownership on land. Before independence, only
the house can be owned by the people of Georgia but not the land. Thus, it is
difficult for international companied to invest in Georgia.
Georgian Government has prepared long term plans. In 1997, they introduced
Public Registry to register immovable properties. The following year 1998, they
introduced new law on “Recognition of Property Rights on Non-agricultural Lands
Used by Physical Persons and Legal Person of the Private Law” to recognize the
lands legitimate use.
Later in 1999, Georgia adopted Land Registration that covers procedures and time.
The introductions of the laws were not good enough to attract more people to
invest. The citizens complained that they only could submit registration
documents to the agency only a half of the day and could receive the prepared
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documents on another second half. Information on technical and legal
consultation were not available. The long queue could lead to someone to find
better connections through a hidden networking environment which could lead to
a corruption environment.
Other than long queue issue, citizens are burdened with unnecessary copies of
documents, lengthy documents obtaining, poor compliance and inconsistent
procedure requirements.
Any reform in simplifying doing business requires legislative and administrative
reforms. Georgian Government has institutionalised a National Agency of Public
Registry (NAPR) to adopt liberal legislation to cater the needs of transformation.
First they need to unify all legislative matters to a single act. The objectives are to
meet deadline and offering optimum services. The legislative also requires the
utilisation of modern technology to cater for fast delivery to the citizens. Slow
process of getting a stamp and a signature should be abolished. Integration of data
between municipality and NAPR should be allowed to avoid making copies prior to
submission.
Legislative Reform Road Map
- 2004: Archives of Technical Inventory Bureau, registration of rights on
movable property and intangible property wealth and registration of tax
collateral/mortgage
- 2005: Registration of public-legal restrictions on property (Notary
Chamber)
- 2010: Registration of businesses and non-business (non-commercial) legal
entities
- 2011: Geodesy and cartography
- 2012: Registration of the political unions of citizens, enumeration of real
estate, administration of a countrywide address system and numbering in
Tbilisi and registration of municipalities
12
Among some administrative reforms for better transparency :Based on previous
experience, the Government of Georgia has implemented new strategy for
National Agency of Public Registry, where they separate frontline services team,
processing application team and payment processing team. The idea is to stop
physical interaction between processing (endorsement team) with the client. The
new business environment has reduced and able to stop corruption as citizens are
unable to contact with the authorised officer.
ICT Reform: In any developed country, other than legislative reform and institutionalize
gatekeeping function for better regulatory quality, technological reform need to be
implemented concurrently. NAPR has formed an internal IT team to develop internal IT
systems and programmes. They never or did not believe in purchasing readymade
programme and solution. NAPR also has adopted Informational Security Management
System ISO 27001. The important value of using this system is to reduce risk of improper
use of information by the agency and to meet Law on Protection Personal Data. NAPR has
done comprehensive preparatory works by mapping all processes in all Georgia. Once the
procedures mapped, the IT simplified procedures and introduced single window
application and subsequently the registration process becomes simpler and faster.
Procurement Reform: Another major step taken by the Georgian Government was to
setup the National Agency Procurement. The tender system can be achieved online and
can be applied from any country or any place in the world. The company selection in the
tendering system is very transparent which allows stakeholders to view the application
and is accessible in three different languages. The Agency who monitors the system has
been voted as 2nd place on Preventing and Combating Corruption.
Starting a Business Reform: There was no unified and no centralized system in Georgia.
After 1994, the business registration was prepared and issued by the Court of Georgia.
The process took a very long time and was very burdensome. Later in 2005, the tax and
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registration were unified under Revenue Services. But still, many problems were not being
able to be solved by the new department.
In 2010, NAPR was given new mandate to register business. The previous function in
Revenue Service was abolished. NAPR then introduced e-registration card. They provide a
free service for citizen or business to search information on shareholder in companies
registered in Georgia. The system integrates information with Civil Registry to verify death
notice of individual in the company. The system also allows entrepreneurs to update their
information and beneficiaries, creditors or business partners through online.
Day 2: 17 March 2015
17 March Agency for Development of State Services of MOJ
10.00-12.30pm
Agency for Development of State Services of MOJ
Civil Registry
Registry of Civil acts
eID& e-Signature project
Community Development Center
2.3 Civil Registry Department
The Civil Registry Agency was established in 2006, now as a single unified agency
combined.
14
Issues before reform: Corrupt system, Low budget, Outdated offices, 10 PCs and
Unmotivated personnel.
The Reform started with new services, improved service, Legislative changes, IT
Technologies, Infrastructure and HR policies. Under HR Policies - New attestation,
internship and trainings system introduced Selection and appointment of employees
through competition, Increase of salaries, motivating personnel. Infrastructure reforms
:All offices work freely in ONLINE mode , Centralised management, transferring decision-
making process to back-office and focusing on services provided by front-offices, Banking
services launched in front-offices and Courier services for all offices. IT Technologies
backing up infrastructure as shown below:
15
After Reform: Corruption-free, simple, citizen-oriented system, increased budget,
updated offices, PC for every employee, increased salary, motivation and incentives, and
strict quality assurance of services.
16
Service Improvement
Service delivery time periods reduced
Expedited services available
Lots of services free of charge
SMS notification service introduced
New Services
Second-generation biometric passports have been issued since 2010
Issuance of eID cards started in 2011
The Public Service Development Agency was established in 2012 on the basis of the Civil
Registry Agency. Main Functions of the Civil Registry Department:
1) Civil Acts and Population Registration Service
- Civil acts registration
- Population registration
- Issuance of identity documents
2) Citizenship and Migration Service
- Reviewing applications and decision-making on citizenship issues
- Reviewing applications and decision-making on migration issues
3) Apostille and Legalization Service
- Authentication of documents by Apostille
- Legalization of documents
- Translation of documents to be authenticated
4) Distance Services
- Applying online
- ID card suspension
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- Consultation of citizens
5) Commission on Citizenship Issues
- Determination of expediency of acquisition of citizenship and preparation of
relevant opinion
6) Territorial Offices
- Accepting and reviewing applications on issues falling within the competence
of the Civil Registry
- Issuing of general education documents
7) Biometric Documents Personalization Centers
- Personalization of biometric passports
- Personalization of ID cards
2.3.1 Brief Overview of Civil Acts Registration Procedure
a) Agencies having registration authority
In Georgia: 66 Territorial Offices, 13 Public Service Halls and 19 Community Centers while
Abroad: Diplomatic mission / consular office of Georgia abroad.
Types of civil acts: Birth, Establishing paternity, Adoption, Change of given name/surname,
Marriage, Divorce and Death. All these Acts have been registered electronically since
2008.
Birth and death have been registered based on electronic notifications since 2011. The
presentation describes in more detail on the registration of birth, registration of paternity,
registration of adoption, registration of marriage, registration of divorce, registration of
change of given name/surname and registration of death.
The Agency also issues: Repeated certificates of civil acts, Civil act record registration
certificate and Certificate of no impediment to marriage.
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Expedited services are provided within shorter term subsequent to payment of the
relevant fee at any territorial office, Application can be filed electronically and Fee is paid
at a bank.
b) EID Card and Trust Services
Highlights of the presentation include Electronic ID Card and Identification Service
Development in Georgia.
• Reasons for new ID
- Durability – with polycarbonate body
- More security features, less risk of fraud
- MRTD standard (ICAO Document 9303)
- Standard size (old one did not fit most wallets)
• Reasons for eID
- e-MRTD for better security
- Usage in online space for Online Authentication and Digital Signature
- Tool for e-Government and e-Business
For the e-Residence Permits, there are different designs with the same technology.
• Production: Produced in Germany, by Muehlbauer AG, in secure facilities
with numbered blanks securely delivered to PSDA. Personalization Feature:
Personalized in PSDA’s Biometric Documents, Personalization Centers, 3
Major Cities Tbilisi, Kutaisi and Batumi.
There are security features of the higher level on the card with Dual-Interface (Contact &
Contactless) Chip. The ISO/IEC 7816 Contact Interface: 2 Certificates, issued by PSDA with
online authentication and digital Signature (Qualified), secured with 2 distinct PIN codes.
The ICAO LDS Applet - Compliant with ICAO 9303with personal Data Storage and secured
with BAC .While the ISO/IEC 14443 Contactless Interface with MIFARE 1k Classic
(Emulated) comprising MIFARE Application Directory, Citizen’s Social Status data (if
applicable) , Any 3rd party data can be securely deployed and Custom-built secure reader-
19
writer devices are available ; as well as ICAO LDS which is Compliant with ICAO 9303, has
Personal Data Storage and also Secured with BAC (Basic Access Control ) .
The Chip as a Security Feature: Personal data (LDS) is signed using Document Signer Key,
Key type: 2048-bit RSA, Re-key in each 2 months, Can be checked by standard tools
including Free ones (e.g. JMRTD).
Detail features of PKI Applet: Secure Key Storage (Two 2048-bit RSA Keys, secured by
Different PIN codes, 4 digits for Online Authentication, 6 digits for Signature,
Authentication PIN, E-Signature Transport PIN and PUK are delivered in secured envelope
and E-Signature PIN Code is set by the citizen and the Certificate Storage (Two
Certificates, issued by PSDA and two CA certificates and Certificate renewal is possible
(Including remote renew).
c) Electronic signature and seal
At present, Georgian e-Signature Law which was adopted in 2008 is mostly compatible
with Directive 1999/93/EC, but there are some differences. However the upcoming one
prepared by PSDA and DEA will be more suitable for current needs and has high level of
compatibility with Regulation (EU) No 910/2014.
d) Big Plan for e-Georgia
In all scenarios where government is involved in e-communication (C2G, G2C, B2G, G2B,
G2G), usage of Qualified Electronic Signature shall be mandatory. Expecting eID to be a
Personal Signature Tool. Current Status: Legally equivalent to handwritten signatures,
Used to sign PDF files with PAdES format and Signing is free. In progress; Support of
additional signature formats and Support restoration of forgotten signature PIN, w/o need
of card change.
The e-Seal, Signature for Government and Business: motivated to issue electronic birth
certificate and how to protect it from forgery and also to obtain account statement from
20
internet banking. Plan to issue special cards for business use and Government and large
business entities to use more powerful equipment.
The e-Seal Token is being planned: Usage (Signing Token and Admin Token, E-Signature in
the name of the Legal Entity and to be replaced rubber stamp) with additional Sim-sized
card for USB tokens.
The e-Seal Issuance Plans: National Agency of the Public Registry will make registration for
Business Seal. The e-Seal will be personalized, issued and maintained by PSDA. Application
Process Highlights; an authorized representative will have the right to apply, Seal will be
available for already registered business and It will be possible to apply during business
registration.
Other Projects include Biometric Signatures (Joint project of PSDA, National Bank and
National Forensics B, Commercial banks use e-Signature pads for signing and Not a
Qualified Signature, but legally recognized in a banking sector); Trusted Time Stamping
(Provides evidence of the signing time, PSDA Time stamping Service is free for low-
demanding entities, High load is sold as a commercial service and Qualified Timestamps
will be regulated by new e-Signature law).
e) Introduction of e-Governance in Local Governments
Two main problems were highlighted. In terms of Organisation were outdated and
ineffective forms of public service delivery, lack of transparency, absence of statistical and
analytical data, Lack of tools for promoting civic engagement. In terms of Infrastructural
were obsolete buildings, inappropriate working conditions, outdated and insufficient IT
equipment, low-speed internet / lack of internet connectionand deficiency or absence of
other technical infrastructure (scanners, printers, internal network, etc.)
Project Information: Implemented by Public Service Development Agency (PSDA) , funded
by European Union (EU) , Beneficiaries : 28 Municipalities with participants from the
National Agency of Public Registry, National Archive of Georgia, Social Service Agency,
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Training Center of the Ministry of Justice, Data Exchange Agency, Smart Logic, Notary
Chamber of Georgia, Legal Aid Service, Private Sector Representatives (Magti, Liberty
Bank, Meqanizatori, UGT). Project duration May 2014 – May 2016.
Project Description
• Two main project components : Development of Community Centers and
Introduction of e-Governance in Local Governments
Concept of Community Centers
All locally sought-after services within a single space
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Demand For services
f) Promotion of Civic Engagement
Training for local population Capacity building, Informational meetings, Civic
engagement activities: discussions, exhibitions, documentary film screenings, etc.
and Contemporary electronic library.
Statistics
Number of public Services delivered through Community Centers to date amount
to 112,630
Number of trainings, seminars, conferences and exhibitions organized in the
Community Centers totaled 160
More than 2000 local citizens participated in the events hosted by the Community
Centers to date
g) Criteria for selecting Community Center Locations
Number of local population, Distance from the Municipal Center, Readiness of the
Municipality and Special circumstances (villages located in the vicinity of
state/administrative borders and in conflict-affected areas, etc).
23
Future Plans
Construction and opening of new Community Centers, provision of new services, and
stimulation of civic engagement, planning and implementation of activities tailored to the
needs of local population and ensuring sustainability of the project outcomes.
Municipal Management System
- Web-technology based operation system
- Internal work-flow component (Registration of Applications, Status
Management, Tasks Module, Notification Systems and Collegial Decisions, etc)
- Integration with external systems (Data of other Agencies and My.gov.ge
Municipal Management System
Converting services into electronic format, standardization of processes, avoiding
human error, separation of responsibilities and employee roles, effective
distribution of human resources, means to analyze performed work, effective
planning of future work and increasing accessibility at the village level.
Municipal Management System
Municipal management system, determination of construction conditions for a
plot of land, agreement of construction project, issuance of construction permit,
legalization of construction/land, identification of municipal property,
preparation/revision of privatization list, privatization of property, management of
administrative violations, study of village priorities.
Introduction of e-Governance Current Situation:
- Memorandums of Understanding were signed with 7 selected municipalities
(Gardabani, Khashuri, Kareli, Tetritskaro, Khobi, Akhmeta, Kvareli);
- Process analysis was performed with active involvement of the local
government units for optimization and effective planning of municipal services;
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- Preparation of the local infrastructure is currently underway for the
implementation of service management and workflow systems;
- The Municipal Management System is connected with up to 15 electronic
services of the Public Service Development Agency, National Agency of Public
Registry and Social Service Agency.
Future Plans
- Testing of the software and its implementation in the municipalities
- Further improvement of the software by adding new e-Services / processes
- Establish cooperation with other interested municipalities
25
Day 3: 18 March 2015
18 March Tbilisi Municipality
10.00am - 4.30pm
Tbilisi Municipality LEPL Tbilisi Architecture (agency
responsible for issuing construction permits in Tbilisi);
Tbilisi City Hall LEPL Property Management Agency;
Tbilisi City Hall Inspection Agency;
2.4 Construction Permit Reforms in Georgia
Initial problems and challenges encountered: Corruption, illegal constructions, number of
conflicts, legal nihilism, Soviet regulation and weak enforcement. Members of the mission
were enlightened on how/where Georgia started. First they defined what is important
26
and what is not important); what are implementable under given circumstances and
considering available institutional capacities; and prioritise. As a result Georgia improved
150 places on the “Dealing with Construction Permits” indicator of the annual World Bank
Doing Business (DB) Survey, from 152 on DB 2006 to 2 on DB 2014. The number of issued
construction permits in Tbilisi has increased almost five times from 2004 (0.5million sq.m)
to 2008 (2.4 million sq.m).
27
Members of the mission were given a comprehensive presentation on the background of
the First Decade of the Post-Independence Period, Main Challenges of the Construction
Regulatory Framework Before 2005, First Phase of Construction Sector Reform ranging
from One-Stop-Shop principle, government’s resolution on Construction Permit Issuance
Procedure and Permit Terms, Putting Completed Premises into Exploitation and
Mandatory state expertise of construction projects. Results from First Phase of Reform:
Changes implemented in 2005-2006 significantly reduced time and procedures required
for obtaining construction permit on the territory of Georgia. Following these changes,
number of procedures to be undertaken for obtaining construction permit was cut, on
average, from 29 to 17, while average time required for obtaining permits reduced from
285 days to 137 days. As a result of streamlining, Georgia’s ranking in the World Bank’s
Doing Business Survey 2007 on Dealing with Licenses category improved from 152nd to
42th.
The Second Phase of Construction Sector Reform: Confirming the engineering and public
utility connections, Approval of architectural project and Issuance of construction permit
.For issuance of building permit and putting completed premises into operation, building
complexity is divided into five classes according to various risk factors.Putting Completed
Premises into Exploitation has reduced time for putting completed premises into
exploitation from 30 to 15 days for certain classes. Results from Second Phase of Reform:
Number of procedures to be undertaken for obtaining construction permit was cut, on
average, from 17 to 9, while average time required for obtaining permits reduced from
137 days to 74 days. As a result of streamlining, Georgia’s ranking in the World Bank’s
Doing Business Survey 2014 on Dealing with Construction Permits indicator improved
from 42nd to 2nd.
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Among some of the reforms in progress are abolishing some of the sub-licenses for
designing and construction activities, streamlining of Issuance of construction permits
WBDB Dealing with Construction Permits Indicators
CategoryDB
2006DB
2007DB
2008DB
2009DB
2010DB
2011DB
2012DB
2013DB
2014
Dealing with Construction Permits
152 42 11 10 7 7 3 3 2
Procedures (no.) 29 17 12 12 10 10 9 9 9
Time (days) 282 137 113 113 98 98 74 74 73
Cost (% of income per capita) 145 71.7 28.9 20.3 21.6 23.2 20.2 17.7 14.9
Dealing with Construction Permits Indicators Measure: - Procedures to legally build a warehouse (number)- Time required to complete each procedure (calendar days)- Cost required to complete each procedure (% of income per capita)
Comparative Table of Construction Permit Issuance Procedures Before and After Reform
Construction Permit Issuance Procedures Before Reform
Construction Permit Issuance Procedures After Reform
Unclear procedures / Contradictory normative acts
Clear procedures
Documents and approvals from 5-10 administrative bodies
Single-window principle
Time required for obtaining permits -one year in average
Time required for obtaining permits -one month in average / Silence is consent principle
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and Georgia is in the process of elaboration of local building codes and standards, based
on International Code Council’s codes and their referenced standards.
2.4.1 Tbilisi City Hall: Property Management Agency
Has in place electronic application with various search parameters and one can register on
the web-site to get the full-service package of Electronic Bidding Process. The agency
cooperates with the Civil services of the Tbilisi City Hall and state organs: Tbilisi
Architecture, Municipal Improvement Service, Legal Department, Supervisory
Department, Greenery Department, Social Service and Culture Department, Financial
Department, Patrol police, Ministry of Economic Development and Gas, Water and
Electricity supply companies. Results of the reform: Comfort, simplified procedures, saving
time and expenses, a full-service package, a trustful partner, crack down corruption and
reduction of administrative expenses up to 60%.
2.4.2 Tbilisi City Hall Department of Supervision
This department presented on main functions/responsibilities of Department of
Supervision including its administrative processes, requirements and speedy proceeding
services for the following:
• Revealing, control and penalizing of buildings without permit;
• Start proceeding on violation of architectural project;
• Health and safety control of building-up process;
• State-technical supervision service (check up and giving recommendation);
• Building completion approval (acceptance for exploitation).
2.5 State Procurement Agency
The need to reform procurement system: lack of transparency, non-reliable data,
restricted competition, geographical inequality, high compliance costs and high risk of
corruption. The reform journey:
January 2010 - developed e-procurement system in house (within one year)
August 2010 - e-procurement system launched in test mode
October 2010 - first e-tender announced
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December 2010 - paper tenders abolished, only e-tenders allowed
December 2014 - 19,911 registered suppliers in Ge-GP; 4472 registered procuring
entities in Ge-Gp, $ 810 mill GEL savings generated, total number of announced e-
tenders totaled 121,232 and more than 7 billion GEL went through Ge-Gp.
Some features of Ge-GP
Basic logic of Ge-Gp
High transparency of Ge-Gp where everyone sees everything in the Ge-Gp business
process from annual procurement plan, tender notice, tender documentation, tender
proposal/bids, minutes of evaluation committee, all related correspondence and
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documents, all data on disputes including application and decision, contracts and
amendments, until payments under the contracts.
The Ge-Gp system received many commendations, among them:
a) United nations (UN)
“The Ge-GP system was awarded 2nd place among 471 candidates from 71 countries in the
United Nations’ Public Service Annual Survey, Category: Preventing and Combating
Corruption in the Public Service.”
b) European Bank for Reconstruction and Development (EBRD)
EBRD Assessment of Public Procurement Law and Practice, 2011: “The key components of
Public Procurement policy are introduced in South-European countries, however only
Georgia has high Compliance rating, as Georgia has best complied with and implemented
the efficient procurement instruments recommended by the international best practice.
“According to EBRD 2012 Regional Public Procurement Legislation Self-Assessment
Georgia’s on the 1-st place amongst EBRD Regional 26 countries.
c) Transparency International- Georgia
“The electronic, transparent system of state procurement was success fully introduced in
Georgia, what can be highly appreciated. It is very good, when the Government published
various data online for its citizens and makes them publicly available, thus promoting the
introduction of e-governance.”
“The agency is working towards one of the most important parts of the public
procurement reforms in Georgia – enhancing effective involvement of SMEs in public
procurement and thereby promoting employment and free competition. The effective
changes in this direction are inevitable since today the public procurement is mainly
dominated by large enterprises at the exclusion of local SMEs.”
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d) Asian Development Bank (ADB)
“Thee-procurement system implemented in Georgia may serve as a good example for Asia
and other Pacific countries. The countries, which have not yet introduced thee-
procurement system, are particularly interested in the reforms implemented in Georgia.”
e) European Parliament
Report of the European Parliament Committee on International Trade 2011/2306(INI):
“The European Parliament Welcomes Georgia’s new procurement system, Georgia should
also serve as an example for the EU Member States in this area.”
f) The World Bank
Thanks to constant upgrading, the SPA is already a regional leader when it comes to
integrating modern procurement practices, including successfully facilitating electronic
tendering, maintaining an electronic bidding platform, and executing reverse auctions to
drive efficiency forward. Important efforts were made to attract foreign suppliers,
especially large multinationals, to participate in tenders-including publishing all
information online.
Meeting with Construction Private Sectors
Tbilisi City Hall recommended all mission members to visit New Carrefour Complex near
the Tbilisi airport. The building is still under construction, only 60% completed. The
objective of the visit was to verify and validate information with the practitioners on the
ground. The development process is indeed faster in Tbilisi. The only procedure that
members were not so sure was the inspections during construction and certification of
the building. According to the consultants, the inspection will be carried out by many
parties eg. Fire Department, utility providers and Building Department of Tbilisi City Hall.
It was noted that some of these requirements were not recorded in the WB Ease of Doing
Report.
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19 March 2015 Day 4 (10.00am-4.30 pm)
19 March Tbilisi Municipality
10.00am
Rustavi Service Agency of Ministry of Internal Affair
The guests will be shown how different services are provided to the
customers, including detailed description of car registration, driving
licenses, etc.
11.30am
Site Visit – Lillo Economic Zone of Clearance of Ministry of Finance
The guests will see streamlined customs clearance procedures through
one stop shop service. Delegation will be acquainted with electronic
services available in customs clearance zone.
2.30pm
Site visit to Tbilisi Public Service Hall of Ministry of Justice
The guests will be shown how different services are provided to the
customers, including detailed description of business registration
process, document submission, registration steps.
2.5 Rustavi Service Agency
In Rustavi Service Agency of Ministry of Internal Affair, the mission members were
introduced to the car registration system in Georgia. In Georgia, Police Department
administers vehicle registration. The Rustavi area we visited was 30 km away from Tbilisi
City Centre and connected by highway. From our observation, this area is a one-stop-
centre, from purchasing a vehicle, driving test, to registering a personal vehicle.
The Rustavi Service Agency area is divided into 5 sections namely Car Registration Section,
Payment-Banking, online examination and vehicle driving test, Weapon Registration and
Administration. All these sections are located at the lobby and accessible to the public.
To register a new vehicle, the owner has a choice to either register with a running number
or to register his own preference number. The running number registration is free and will
take not more than 5 minutes. While the preferred own number is it will take not more
than 10 minutes and has to pay extra. The owner needs to check his number at any online
kiosk. Once the number and the fee have been agreed, he will then book the number and
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make payment at the bank. The registration process also separates processing of
registration and payment. The Ministry of Internal Affair has adopted the one-stop-service
introduced by Georgian Government to reduce corruption in the Police Force and regain
trust from the citizen.
2.7 Lillo Economic Zone of Clearance
The Lillo Economic Zone of Clearance, Ministry of Finance which is equivalent to the Royal
Malaysia Customs in Malaysia and the Goods Clearance Zone (CCZ) is located outside
Tbilisi connected by main Highway. The building is equipped with modern IT technology
and well designed with enough parking for trucks. In Georgia, there are 5 CCZs located in
four regions. All CCZs operate 24 hours non- stop daily.
Like any other one-stop-centre, the building also separates processing and payment
services for public. The mission members were given an opportunity to test the clearance
process. The officers chose Mayor to test the system whereby he was provided with the
packing list and invoice. First he was guided to the front counter to get his number. Once
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the number was up, he showed his documents to the processing officer at a different
counter within the vicinity. Once the details are captured by the officer, the Mayor was
asked to sign in digital. With that he has completed the procedure and now guided to the
bank counter to make payment. The clearance procedure only requires 3 steps with 10
minutes to complete his request to register and make payment.
The mission members were further informed that it only takes 30-45 minutes for
inspection to clear goods in green lane. To cross the border, the records showed the
average clearance was within 10 minutes.
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CCZ Environment
2.8 Tbilisi Public Service Hall of Ministry of Justice
On the last day of the event the delegation had the opportunity to visit the most talked
about Public Service Hall in Tbilisi. The building is very modern and the roof looks like
leafs. This Public Service Hall is 5000ms and offers 350 services. Based on the record in a
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day they achieved 10,000 mark transactions with 23,000 customers. The average waiting
time taken per transaction is 3-4 minutes and the delivery transaction average time is 7
minutes.
In the beginning, the public service offered by any government agency was sluggish and
tainted with corruption. To get a passport in the old days, a citizen has to prepare at least
300 GEL to pay officers at various levels.
Breakdown of corruption in getting a passport
Before the systematic approach was introduced, the process of getting an Identification
Card was labeled as very bureaucratic and lengthy.
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Getting ID in the old days
Dealing with the state to set up a new business, or operate an existing one, was fraught
with delays and corruption. In 2003, 909 permits and licenses were required, many of
which could be bought and served no societal purpose. By 2011, the number of permits
and licenses had been reduced to 137. Over 2003–11, the number of days needed to
obtain a construction permit was cut from 195 to 98, and the number of procedures was
reduced from 25 to 9. Through aggressive use of the “guillotine,” reformers shut down the
entire government agencies that were not providing value and merely extracting bribes
from the population.
Informal payments were once the norm in public and civil registries. Introduction of a new
culture, new staff, new technology, and new business processes has streamlined all
interfaces between the citizen and the state—from registering a property to obtaining a
passport— eliminating many opportunities for bribes.
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23 March 2015 Day 1 (9.00 - 11.00 am)
23 March Istanbul Metropolitan Municipality
9.00-11.00am Meeting with Mayor of Istanbul Metropolitan Municipality
2.9 Istanbul Metropolitan Municipality
Istanbul Metropolitan Municipality is a propulsive force for the Turkish economy and the
Mayor, Mr. Topbas is actively reshaping Istanbul. He has been involved in the restoration
of numerous historical monuments, implemented a project to improve the architectural
silhouette of Istanbul’s Beyoğlu district and designed several socio-cultural facilities as
part of Istanbul’s “Urban Transformation and Social Rehabilitation” agenda. The meeting
was to share numerous urban issues, exchange views on how local and regional
governments have played a major role in the development process of the cities and
regions, and deliberate on potential way forward for cooperation.
3.0 CONCLUDING REMARKS
How did the Georgian Government do it?
From these case studies, a set of 10 cross-cutting factors emerge that have driven
Georgia’s success story. These lessons can be summarised as follows:
1. Exercise strong political will. The overwhelming mandate from voters and the dire
reality of the situation Georgia’s new leaders inherited bolstered their will to act
quickly and forcefully.
2. Establish credibility early. The new leaders struck hard against corruption to
establish early credibility and extend the window of opportunity voters had given
them. High-profile arrests of corrupt officials and criminals signaled zero tolerance
for corruption. Early successes built support for further actions, in a virtuous cycle
of reform.
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3. Launch a frontal assault rather than spending precious time strategizing, worrying
about sequencing, or consulting on action plans, the government launched a rapid
and direct assault on corruption in a broad array of public services. It acted quickly
to keep vested interests at bay.
4. Attract new staff. The leaders of the Rose Revolution formed the core of the
government’s executive branch. They looked outside politics and government to
recruit qualified, often Western-educated, staff to spearhead the reforms and paid
them well.
5. Limit the role of the state. The reformers shared a vision of limited government.
They also believed that limiting contact between citizens and civil servants and
slashing red tape reduced opportunities for corruption and was good for the
economy.
6. Adopt unconventional methods. Extraordinary times required innovative
approaches. A special fund financed from outside sources paid for increased
salaries and bonuses for a short initial period. Jailed corrupt officials and tax cheats
who admitted guilt and paid heavy fines were released from prison.
7. Develop a unity of purpose, and coordinate closely. A small group of policy makers,
headed by the president, formed a core team that shared common values,
coordinated closely, and stayed together. Regular cabinet meetings and close ties
with allies in Parliament facilitated coordination.
8. Tailor international experience to local conditions. The government borrowed from
international experience in designing reforms, adapting foreign practices to local
circumstances as needed.
9. Harness technology. The government used technology extensively to limit contact
between the state and citizens, implementing e-filing of taxes, electronic payments
for services, and traffic cameras.
10. Use communications strategically. Communication started at the top, with the
president, whose message on corruption was clear and consistent. The media was
key in investigating corruption and publicizing the sensational arrests of suspected
criminals, tax cheats, and corrupt officials.
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3.1 Creating One-Stop Shops
To simplify procedures, the government created one-stop shops. Citizens now go to one
office within each issuing ministry to submit their documents, and the issuing agency, not
the applicant, is responsible for collecting relevant information from other government
agencies. All fees are paid through banks, not to officials.
Processes were automated, with applications entered into a transparent computer
system. Business processes for issuing licenses and permits were spelled out in staff
guidelines and, where possible, computerised, with time limits imposed for the
completion of each step. There would be no more tossing applications on shelves and
forgetting about them.
Each ministry will ultimately have its own service center—many in their own building—to
administer and provide licenses and permits, thereby separating the policy-making bodies
from the units administering and issuing the permits and licenses. This work is ongoing.
Ultimately, a larger system will link service units from different ministries.
To speed up the application process, the government eliminated unnecessary
bureaucratic steps, such as the mandatory registration of company charters—which few
people ever understood how to do. Applicants who register in person at the issuing
agency no longer have to get documents notarized.
3.2 Integrating Service Innovation
In 2011, the government opened the first four public service halls, in Batumi, Kutaisi,
Mestia, and Rustavi. More public service halls were planned; among them were Tevali,
Kvareli, Gori, Zugdidi, Tbilisi and many more. These new institutions go one step beyond
the one-stop shop idea by allowing citizens to access services from various agencies under
a single roof. Citizens can register property or businesses; obtain identifications,
passports, and birth and death certificates; and get notary services at a public service hall.
Self-service areas are available for a number of simple transactions; customers are
directed either to quick service areas for simple questions or to operator desks for tasks
that will take more than five minutes. Each hall is brightly decorated and has staffed areas
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where children can be entertained while their parents complete their business.
Comfortable waiting areas are available with free Internet connections. A greeter meets
people at the entrance and guides them to the right place. Employees are intensively
trained, not only in the technicalities of their work but on creating a friendly, customer-
oriented environment. Interestingly, the idea for the public service hall originated at a
management retreat held by the Ministry of Justice. The focus of the retreat was on how
agencies can improve services, reduce delays, and make bureaucratic processes as
painless as possible.
The Malaysian delegates will identify and adopt/adapt certain best practices. The Focus
Group on Dealing With Construction Permits (FGDCP) will study the impact by preparing
cost benefit analysis and conduct public consultation with respective stakeholders before
making any recommendations.
Prepared by,
Fact Finding Mission on Challenges and Best Practices of Georgia Doing Business
Improvement Initiatives and Istanbul Municipality Courtesy Visit delegates.
Contacts:
Khalidatul Asrin binti Abdul Aziz
(Administrative matters)
Ph: 03 – 7960 0173
Email: [email protected]
Mohd Yazid bin Abdul Majid
(Other matters)
Ph: 03 – 7960 0173
Email: [email protected]
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The Delegates:
1. YBhg. Datuk Seri Ahmad Phesal bin Hj. Talib Mayor Kuala Lumpur City Hall
2. Mr Mohd Haniff bin Hassan
Director Federal Territories Director of Lands and Mines Office
3. Mr Tan Peng Heng
Director of Information Management Department Kuala Lumpur City Hall
4. Ms Nor Fajariah binti Sulaiman
Head of One Stop Centre Kuala Lumpur City Hall
5. Mr Ir Bashir Ahamed bin Maideen
Managing Director and Professional Engineer Nadi Consult Era Sdn Bhd
6. Mr Mohd Yazid bin Abdul Majid
Manager (Smart Regulation) Malaysia Productivity Corporation
7. Ms Khalidatul Asrin binti Abdul Aziz Consultant (Smart Regulation) Malaysia Productivity Corporation
