PCR: Mongolia: Cadastral Survey and Land Registration Project$1.00 = MNT1,064 MNT1,427 ABBREVIATIONS ADB – Asian Development Bank ALACGaC – Agency of Land Affairs, Construction,

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 mapping

– activity of mapping for all types of cadastre using the results of geodetic 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 2. Loan Number 3. Project Title 4. Borrower 5. Executing agency 6. Original loan amount Net loan amount 7. Project completion report number

Mongolia 1736-MON Cadastral Survey and Land Registration Project Government of Mongolia 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 SDR7.21 million ($9.90 million) SDR6.38 million ($9.66 million) MON 1228

B. Loan Data 1. Preappraisal – Date started – Date completed 2. Appraisal – Date started – Date completed 3. Loan negotiations – Date started – Date completed 4. Date of Board approval 5. Date of loan agreement 6. Date of loan effectiveness – In loan agreement – Actual – Number of extensions 7. Closing date – In loan agreement – Actual – Number of extensions 8. Terms of loan – Interest rate – Maturity – Grace period

23 February 1999 5 March 1999 12 October 1999 20 October 1999 18 November 1999 22 November 1999 27 January 2000 25 April 2001 24 July 2001 27 September 2001 1 31 December 2007 5 October 2010 1 1.0% per annum during grace period and 1.5% thereafter 32 years 8 years

9. Disbursements a. Dates

Initial Disbursement 13 November 2001

Final Disbursement 7 April 2010

Time Interval 100 months

Effective Date

27 September 2001 Actual Closing Date 30 September 2009

Time Interval 96 months

ii

b. Amount ($) Cat No. Category or Subloan

Original Allocation

Last Revised Allocation

Amount Disbursed

Undisbursed 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

and Survey 3,307,000 3,506,300 3,466,158 40,142

03A Equipment, Vehicles, and Furniture – Component A

798,000 911,780 911,780 …

03B Equipment, Vehicles, and Furniture – Component B

213,000 99,220 26,932 72,288

04A Operation and Maintenance - Component A

101,000 123,024 123,024 …

04B Operation and Maintenance - Component B

359,000 336,976 106,606 230,370

05A Benefit Monitoring and Evaluation - Component A

32,000 32,000 32,000

05B Benefit Monitoring and Evaluation - Component B

32,000 32,000 32,000

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)

Cost Appraisal 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)

Cost Appraisal Estimate

Actual

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

Component Foreign

Exchange Local

CurrencyTotal Cost

Foreign Exchange

Local Currency

Total Cost

A. Cadastral survey and mapping

3.27 3.21 6.48 1.40 5.72 7.12

B. National Land Information System

2.51 1.28 3.79 2.56 0.34 2.90

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 Contingencies

6.86 5.44 12.30 3.96 6.06 10.02

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

Implementation Period Development

Objectives Implementation

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

iv

D. Data on Asian Development Bank Missions

Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization 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 and Targets

PCR Evaluation of Accomplishments

Assumptions and Risks

Goals

Develop a functional property market in Mongolia and an improved land administration system.

Encourage Investment in industrial, commercial and agricultural sectors.

Improve the Governments fiscal position.

Increased number of private transactions in property

Increased amount of sectoral investment

Increased Government revenues and reduced central subsidies to provinces

Government data shows increased numbers of private property transactions Data from government shows increased inward and domestic investment in industry, commercial, and agriculture sectors

Government revenues increased, including revenues from land transactions

Accomplishments not necessarily related to project outcomes Little political will to increase decentralization of budgets or reduce central subsidies to provinces

Purpose

Provide guaranteed property title to prevent social and economic costs of disputes over property and land use rights and boundaries.

Improved annual land fee payment (ALFP)

Land-use records are established for about 2 million ha of cropland and about 1 million ha of urban and settlement land. MNT5 billion is collected by 2010.

Land-use records have been established for about 350,000 parcels covering about 1.5 million ha of land

Total land fee collections increased to MNT29 billion by 2009

Government policy on privatization of residential property has advanced.

Land registration and cadastral mapping has advanced.

Land fee payment collection by local governments has increased.

Outputs 1. Component A: Cadastral survey and land registration system established and cadastre produced

Digital orthophoto maps produced

Cadastral database produced

2. Component B: NLIS established (i) Hardware and

Software systems for NLIS established

(ii) Capacity developed for operating NLIS

Maps with base scale of 1:2,000 for all urban and settlement land and with scales 1:50,000 for all cropland

All parcels recorded in the cadastral map

Attribute data collected (registration of possession or use) for all land parcels

Network system designed

Computer sets installed in 21 provinces, city and LMA

26 persons trained in computer literacy courses

2 systems administration courses

6 persons trained in one year international training courses

Maps developed with base scale of 1:1,000 for all urban and settlement land and with scales of 1:50,000 for all cropland

All parcels recorded in the cadastral maps

Attribute data collected and recorded for mapped area in Ulaanbaatar city, Tov, Darkhan-Uul, Orkhon, Bulgan, Selenge, Dornod, Sukhbaatar, Hentii, Omnogovi, Dornogovi, Govisumber, and Dundgovi provinces with 145 subprovinces. Quality may be patchy

Network system designed

364,117 land parcels covering 1,549,158 ha in Ulaanbaatar city, 21 provincial centers, 329 soums (administrative subunit of aimag (province)), and 55 settled areas have been recorded by the project

Local contractors were technically adequate

Improved competence among SAGaC and then ALAGaC staff

Proper procurement arrangements enabled works to be completed to an acceptable standard

Commitment and motivation of provincial staff ensured

Counterpart budget allocated adequately

Risk if trained staff cannot be retained, or if NLIS system not operational for an extended period such that retraining is required

Appendix 1

16




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 -

(i) Aerial photography (ii) Satellite imagery

analysis (iii) Vehicles and

equipment acquisition

(iv) Field survey (v) Digital mapping (vi) Cadastral

database establishment

(vii) Project management, including finalization of tender documents and bid evaluation under TA

4.2 Design and Establishment of the NLIS

(i) NLIS system design

(ii) Network equipment installation

(iii) Training (iv) Vehicles and

equipment acquisition

(v) Project management, including finalization of tender documents and bid evaluation and other advisory services under the TA

Aerial photography and satellite imagery analysis carried out and completed Vehicles and equipment procured Field survey, digital mapping, and cadastral database established Project assistance provided Training carried out NLIS designed Equipment and vehicles procured Project assistance provided Training carried out NLIS commissioned

Aerial photography and satellite imagery analysis carried out and completed Vehicles and equipment procured Field survey, digital mapping, and cadastral database established Project assistance provided Training carried out NLIS designed Equipment and vehicles procured Project assistance provided Training carried out NLIS commissioned

Appendix 1

17




Inputs

I. Investment Costs - (i) Survey, investigation,

and mapping 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

$12.7 million

75 months

$10.14 million

92 months

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.

Appendix 2

18

DETAILED OUTPUTS AT COMPLETION

Table A2: Summary of Completed Works for Cadastral Survey and Land Registration (nationwide)

Phase

Old Points Survey

(no.)

Preparation of Points and

Fixing on the Ground (no.)

Polygonometer Network

Measurement and Its Development

(points)

Evaluation Network

Measurement (km)

Cadastral Survey and

Land Registration

(ha)

Topographic Digital Mapping

at Scale of 1:1,000

(ha) Parcels

(no.)

Fixed Rotation Points (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.

Appendix 3

20

Table A3.2: Actual Project Implementation Schedule


Appendix 4

21

PROJECT COSTS

Table A4.1: Project Cost by Expenditure Category ($ million) a

Cat No. Category

Original Allocation

Last Revised Allocation b

Amount Disbursed

Undisbursed Balance

01 Turnkey contract for NLIS 1,949.52 2,714.90 2,589.60 125.30

02 Satellite imagery, aerial photo, and survey

4,540.19 5,344.90 5,282.00 62.90

03A Equipment, vehicles, and furniture – Component A

1,095.58 1,295.50 1,295.50 …

03B Equipment, vehicles, and furniture – Component B

292.43 153.60 40.40 113.20

04A Operation and maintenance – Component A

138.66 172.80 172.80 …

04B Operation and maintenance – Component B

492.87 523.10 162.40 360.70

05A Benefit monitoring and evaluation – Component A

43.93 50.10 … 50.10

05B Benefit monitoring and evaluation – Component B

43.93 50.10 … 50.10

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

Component Foreign

ExchangeLocal

CurrencyTotal Cost

Foreign Exchange

Local Currency

Total Cost

A. Cadastral Survey and Mapping

3.27 3.21 6.48 1.40 5.72 7.12

B. National Land Information System

2.51 1.28 3.79 2.56 0.34 2.90

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 Contingencies (A+B+C)

6.86 5.44 12.30 3.96 6.06 10.02

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.

Appendix 4

22

Table A4.3: Project Cost Summary by Expenditure Accounts

At appraisal Actual Foreign Local Total Foreign Local Total

Component

($’000) ($’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.


Appendix 5

23

STATUS OF COMPLIANCE WITH LOAN COVENANTS

No Covenants Reference Status of

Compliance Particular Covenants 1. The Borrower shall cause the Project to be carried out with due

diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental and cadastral survey and land registration practices.

LA Section 4.01 (a)

Complied with

2. In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement.

LA Section 4.01 (b)

Largely complied with

3. The Borrower shall make available, promptly as needed, the funds, facilities, services and other resources which are required, in addition to the proceeds of the Loan, for carrying out of the Project and for the operation and maintenance of the Project facilities.

LA Section 4.02

Complied with

4. In the carrying out of the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to the Borrower and the Bank, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank.

LA Section 4.03 (a)

Complied with

5. The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules, and 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.

LA Section 4.03 (b)

Complied with

6. The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

LA Section 4.04.

Complied with

7. The Borrower shall make arrangements satisfactory to the Bank for insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

LA Section 4.05.(a)

Complied with

8. Without limiting the generality of the foregoing, the Borrower undertakes to insure, 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 any indemnity shall be payable in a currency freely usable to replace or repair such goods.

LA Section 4.05.(b)

Complied with

9. The Borrower shall maintain, or cause to be maintained, records and accounts adequate to identify the goods and services and other items 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.

LA Section 4.06 (a)

Complied with

10. The Borrower shall furnish, or cause to be furnished, to the Bank all such reports and information as the Bank shall reasonably request 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

LA Section 4.07 (a)

Complied with

Appendix 5

24

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 later than three (3) months thereafter or such later date as may be 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.

LA Section 4.07 (c)

Complied with

12. The Borrower shall enable the Bank’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents.

LA Section 4.08

Complied with

13. The Borrower shall ensure that the Project facilities are operated, maintained and repaired in accordance with sound administrative, financial, engineering, environmental, and maintenance and operational practices.

LA Section 4.09

Complied with

14. It is mutual intention of the Borrower and the Bank that no other external debt owed a creditor other than the Bank shall have any 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.

LA Section 4.10 (a)

Complied with

15. The provisions of paragraph (a) of this Section shall not apply to (i) any lien created on property, at the time of purchase thereof, solely as 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.

LA Section 4.10 (b)

Complied with

16. The term “assets of the Borrower” as used in paragraph (a) of this Section includes assets of any political subdivision or any agency of 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.

LA Section 4.10 (c)

Complied with

Project Specific Covenants 1. Provision of Information

The Government has given assurance that any contractors carrying out survey activities under project will be provided with all the necessary land attribute information free of charge.

LA schedule 5 para 4

Complied with

2. Security Clearance The Government has given assurance that security clearance for aerial photography, satellite images, and access to all existing mapping and aerial photographs of relevance to cadastral survey will be provided, free of charge, for the purpose of the project.


Complied with

3. Access to National Geodetic Control Framework MID will ensure that surveyors engaged by SAGaC will have cost-free access to the appropriate national geodetic control framework and database required to carry out their work under the project


Complied with

4. Legislation The Government will establish a working committee within three months after loan effectiveness to study all existing land-related legislation to provide a coherent legal framework of laws, based on the Land Law and the State Immovable Property Registration Law, and


Complied with

Appendix 5

25

regulations and subsidiary legislation

5. Equipment for SIPR In the event that financing under the World Bank’s BELTAC Project is not available for the provision of equipment for the provincial 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.


Not applicable

Financial 1. Cost Recovery

Within two years of loan effectively the Government will submit to ADB a proposal for cost recovery of the NLIS Through the imposition of 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.


Complied with but later than covenanted

2. Audited Financial Statements The Borrower shall (i) maintain, or cause to be maintain, separate 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

LA Section 4.06 (b)

Complied with

3. Provision of Counterparts The Borrower shall make available, promptly as needed, the funds 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.

LA Section 4.02

Complied with

Others 1. Established, Staffed, and Operating PMU

SAGaC shall be project Executing Agency for the cadastral survey component (Component A) which shall be implemented through CSD. 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)


Complied with

2. Fielding of Consultants Employment of Qualified consultants and contractors under the terms and conditions acceptable to the Borrower and the Bank.

LA Section 4.03 (a)

Complied with

3. Project Coordination Committee Within one month of the Effective Date, the PCC shall be established, chaired by the Minister of MNE or his designate.


Complied with, but did not initially meet

4. Mid-term Review A mid-term review shall be carried out by senior officials from MID, MNE, MOF and Ulaanbaatar City, in conjunction with the Bank, about three years after the Effective Date. The review shall evaluate the actual physical and financial progress of the Project, Project design,


Complied with

Appendix 5

26

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 Within one year of the Effective Date, the Borrower shall ensure that a benefit monitoring and evaluation system is established by both EAs.


Complied with

6. Quarterly Progress Report The borrower shall furnish or cause to be furnished to the Bank 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.

LA Section 4.07 (b)

Complied with

7. Arranging for Insurance of the Project Facilities The Borrower shall make arrangements satisfactory to the Bank for insurance of the project facilities to such extent and against such risks 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.

LA Section 4.05 (a) and (b)

Complied with

8. Cooperation and Coordination Prior to the commencement of the second phase of Component A, the cooperation of the governments of all provinces, other than Tov 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.


Complied with

9. The Borrower shall ensure that the Land Management Departments of Ulaanbaatar City and each of the provinces shall provide all necessary land attribute information, free of charge, to the contractors carrying 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.


Complied with

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

№ Year Subject Venue Participants

Training Duration (in days)

Number of Participants

1 2002 Practical training on arc view, AutoCad program application

SAGaC office

Land specialists from 21 provincial land offices

14 21

2 2003 Training on legalities of land affairs

ALAGaC office

Land managers from 21 provinces

7 39

3 2003 Training on “Parcels documentation and tax payment procedure for cadastral survey and land registration”

ALAGaC office

Land specialists from 21 provinces

7 21

4 2003 Practical training on GeoMedia software and Photogrammetry workstation conducted by Integraph

ALAGaC office

Specialists of geodesy and cartography division

14 8

5 2004 Working on the cadastre collect software program

ALAGaC office

Economic entities that are entitled to carry out cadastral survey and land registration

3 27

6 2005 Training on legalities of land affairs

ALAGaC office

Land managers of 21 provincial land offices

7 30

7 2005 Training on Capital City program

ALAGaC office

Information database specialists of the capital city and districts land office

7 21

8 2006 Parcels documentations and tax payment procedure for cadastral survey and land registration

Academy of Administration Management

Land specialists of 21 provincial land offices

7 42

9 2006 Working on Taxeometer and its related program supplied by SOKKIA for land offices

Academy of Administration Management

Land specialists of 21 provincial land offices

15 30

10 2006 Working on Taxeometer and its related program

Orkhon, Zavkhan, Bat-Undur, and Khentii provinces

Cadastral specialists of 21 provincial land offices

7 30

11 2006 Structure of the information

Orkhon Province

Land specialists from five provinces

10 100

Appendix 6

28

№ Year Subject Venue Participants

Training Duration (in days)

Number of Participants

database and procedure working on the information database and ArcGIS program

and soum land managers of the central region

12 2007 Training on working with software program of cadastral survey and mapping

Darkhan-Uul province center

Land specialists from five provinces and soum land offices of the central region

7 80

13 2008 Training on working with software program of cadastral survey and mapping

Khandgait, Ulaanbaatar

Land specialists and managers from seven province and soum land offices of the western Gobi regions

14 105

14 2009 User acceptance testing, training on Oracle, key expert training, training on ESRI (GIS Software Company)

ALACGaC Specialists of cadastre geodesy and cartography as well as land management divisions and land office of the capital city

14 40

15 2009 Train the trainers on “NLIS software and practical use”

Bishrelt Hotel, Ulaanbaatar

Specialists of cadastre geodesy and cartography as well as land management divisions and land office of the capital city and specialists, database specialists from 21 provinces

10 75

16 2009 NLIS data structure, collection, maintenance, editing, and updating

Dornogovi, Khentii, Darkhan-Uul aimag

Land specialists from 12 provinces and soum land managers of the central, western, and eastern Gobi regions

7 191

17 NLIS data structure, collection, maintenance, editing, and updating

Arkhangay, Khovd province centers

Land specialists from nine provinces and soum land managers of western and Khangay regions

7 200

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

Supplier Name

Contract Amount

($)

Date of Contract Award

Procurement Modes

PCSS No.

Sokkia Singapore 185,600.00 19 Sep 2002 LIB 0002Geomaster 36,475.00 16 Sep 2002 NCB 0003MONMAP 47,433.00 16 Sep 2002 NCB 0004MM Engineering 62,428.00 16 Sep 2002 NCB 0005Aerogeodesy Share Holding Company 34,323.00 16 Sep 2002 NCB 0006Khet 57,051.00 16 Sep 2002 NCB 0007Aero Asahi Corporation 224,223.00 19 Sep 2002 ICB 0008Integraph Greater China 613,000.00 18 Dec 2002 ICB 0010Nomin Holding 69,126.26 20 Aug 2003 LIB 0011Aerogeodesy Share Holding Company 36,292.00 15 Sep 2003 NCB 0013Geomaster 48,935.00 15 Sep 2003 NCB 0014Geomaster 53,705.55 15 Oct 2003 NCB 0015MONMAP 44,439.00 15 Sep 2003 NCB 0016Khet 47,583.59 15 Sep 2003 NCB 0017Moncan Consulting 50,130.00 15 Sep 2003 NCB 0018GEOCAD 37,997.45 15 Oct 2003 NCB 0019MONMET Engineering 59,553.00 9 Jul 2004 NCB 0022GEOID 58,900.00 9 Jul 2004 NCB 0023Geomaster 59,671.46 9 Jul 2004 NCB 0024GEOCAD 56,995.00 9 Jul 2004 NCB 0025Aerogeodesy Share Holding Company 57,175.00 9 Jul 2004 NCB 0026Khet 59,900.46 9 Jul 2004 NCB 0027MONMET Engineering 60,560.00 9 Jul 2004 NCB 0028MONMET Engineering 47,261.00 25 Feb 2005 NCB 0032GEOCAD 47,230.00 25 Feb 2005 NCB 0033GEOSET 45,045.76 25 Feb 2005 NCB 0034Aerogeodesy Share Holding Company 27,458.00 25 Feb 2005 NCB 0035Geomaster 25,318.10 25 Feb 2005 NCB 0036Moncan Consulting 26,489.20 25 Feb 2005 NCB 0037Pasco Corporation 199,480.00 15 Jul 2005 LIB 0040Sokkia Singapore 201,652.00 28 Feb 2006 LIB 0042Aerogeodesy Share Holding Company 78,100.00 4 May 2006 NCB 0044MONMAP 55,499.99 4 May 2006 NCB 0045Geomaster 79,907.84 4 May 2006 NCB 0046GEOID 65,232.00 4 May 2006 NCB 0047Aerogeodesy Share Holding Company 76,845.50 4 May 2006 NCB 0048GEOCAD 79,900.00 4 May 2006 NCB 0049MONMAP 44,499.00 4 May 2006 NCB 0050GEOCAD 78,800.00 21 Mar 2007 NCB 0056GEOSET 20,125.00 20 Mar 2007 NCB 0057GEOID 31,900.00 5 Jul 2007 NCB 0059RMSI PVT 2,561,938.00 9 Jul 2007 ICB 0060GEOSET 48,810.00 5 Jul 2007 NCB 0061GEOID 63,000.00 5 Jul 2007 NCB 0062GEOCAD 54,700.00 5 Jul 2007 NCB 0063Asmemon 63,249.00 5 Jul 2007 NCB 0064Geomaster 69,654.45 5 Jul 2007 NCB 0065Aerogeodesy Share Holding Company 66,859.80 5 Jul 2007 NCB 0066Moncan Consulting 35,280.00 5 Jul 2007 NCB 0067MONMET Engineering 64,497.16 5 Jul 2007 NCB 0068ATTP 35,678.00 5 Jul 2007 NCB 0069Geomaster 89,648.70 12 Nov 2007 NCB 0072MONMET Engineering 93,736.23 12 Nov 2007 NCB 0073Geomaster 92,333.88 12 Nov 2007 NCB 0074

Appendix 7

30

Supplier Name

Contract Amount

($)

Date of Contract Award

Procurement Modes

PCSS No.

GEOID 94,800.00 12 Nov 2007 NCB 0075Asmemon 74,699.90 12 Nov 2007 NCB 0076Aerogeodesy Share Holding Company 93,400.30 12 Nov 2007 NCB 0077Top Survey 74,299.00 12 Nov 2007 NCB 0078GEOCAD 92,034.00 12 Nov 2007 NCB 0079GEOSET 86,190.00 12 Nov 2007 NCB 0080New Element 25,071.00 1 Sep 2008 IS 0088Masternet 18,070.00 29 May 2008 DC 0090GEOCAD 170,000.00 27 Apr 2009 NCB 0091MONMET Engineering 178,294.11 27 Apr 2009 NCB 0092Geomaster 175,815.00 27 Apr 2009 NCB 0093GEOID 178,800.00 27 Apr 2009 NCB 0094GEOSET 176,750.00 27 Apr 2009 NCB 0095Asmemon 179,058.19 27 Apr 2009 NCB 0096JEIL Bayanbogd 165,111.00 15 Jul 2009 NCB 0097Top Survey 179,004.00 15 Jul 2009 NCB 0098TOP CAD 115,960.00 15 Jul 2009 NCB 0099ATTP 168,018.00 15 Jul 2009 NCB 0100Aerogeodesy Share Holding Company 163,807.00 15 Jul 2009 NCB 0101Moncable 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)

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

No. Years Subjects Venues Participants Duration Numbers Trained

1. 2002–2004

Arc view, AutoCad, cadastre software, and digital applications

SAGaC and ALAGaC offices

21 provincial land specialists and managers and information database specialists

7–14 days

42

2. 2004–2006

Working with software programs for cadastral survey and mapping

ALAGaC offices

21 provincial land specialists and managers

3–14 35

3. 2003–2006

Legal affairs, parcels documentation, tax payment procedures, land registration, and taxeometer program

ALAGaC offices and Academy of Administration Management

Land and cadastre specialists from 21 provinces and economic entities entitled to carry out cadastral survey and land registration

7–15 days

192

4. 2006–2008

Information database structure, software program of cadastral mapping, and user acceptance testing

ALAGaC offices and provincial offices

Land specialists and managers from 21 provinces

7–14 days

325

5. 2009 NLIS data structure, collection, maintenance, editing, and updating

21 provincial centers

Land specialists and soum land managers of all 21 provinces

7 days 391

6. 2009 Train the trainers on NLIS software and practical use

Ulaanbaatar Specialists in cadastre, geodesy, and cartography and land management

10 days

75

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.

Year

Annual Revenue from Land Fee

Annual Revenue from Property Tax

Total

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

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

Documents

PCR: Mongolia: Cadastral Survey and Land Registration Project$1.00 = MNT1,064 MNT1,427 ABBREVIATIONS ADB – Asian Development Bank ALACGaC – Agency of Land Affairs, Construction,