Document ofThe World Bank

ReportNo. 17058-RO

PROJECT APPRAISAL DOCUMENT

ONA

PROPOSED LOAN

IN THE AMOUNT OF USD 25.5 MILLION

TO

ROMANIA

FOR A

GENERAL CADASTRE AND LAND REGISTRATION PROJECT

November 10, 1997

Rural Development and Environment Sector UnitRomania Country UnitEurope and Central Asia Region

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CURRENCY EQUIVALENTS(as of July 30, 1997 )

Currency Unit = Lei (ROL)

US$ 1 7100 Lei

ROMANIA FISCAL YEAR

January 1- December 31

ABBREVIATIONS AND ACRONYMS

ASAL Agricultural Structural Adjustment LoanCadastre Law Lege privind cadastrul general sipublicitatea imobiliara

Law on General Cadastre and Real Estate PublicityCAP Cooperative of Agricultural ProducersCAS Country Assistance StrategyCIDA Canadian International Development AgencyComuna Administrative district, second tier of local government in rural areasDGFFCG Directia Generala de Fond Funciar, Cadastru si Geodezie

Directorate General for Land Fund, Cadastre, and Geodesy (withinMAA)

DO Development ObjectiveDTM Directia Topografica Militara Department of Military TopographyDUAT Department of Urban and Regional Planning (within MLPAT)EU-PHARE European Union Development AgencyFESAL Financial and Enterprise Structural Adjustment LoanFGCEI Faculty of Geodesy, Civil Engineering Institute, University of BucharestFRR Financial Rate of ReturnFY Fiscal YearGCIG General Cadastre Implementation GroupGIS Geographic Information SystemGPS Global Positioning System. Satellite navigation system for geodetic

controlHa HectareIBRD The World Bank. International Bank for Reconstruction and

DevelopmentICB International Competitive BiddingICR Implementation Completion ReportIDA International Development AgencyIGFCOT Institutul pentru Geodezie, Fotogrammetrie, Cartografie si Organizarea

TeritoriuluiInstitute for Geodesy, Photogrammetry, Cartography and LandManagement

IP Implementation ObjectiveJudet 41 departments or counties, first tier of local government

Vice President Johannes F. LinnCountry Director Kenneth G. Lay

Sector Director Kevin M. CleaverTeam Leader Kundhavi Kadiresan

Land Book Carte finciaraLBIG Land Book Implementation GroupLBO Land Book Office(s) Biroul(ui) de cartefunciaraLIB Limited International BiddingMAA Ministerul Agriculturii si Alimentatiei

Ministry of Agriculture and Food IndustryMAPPM Ministerul Apelor, Padurilor si Protectiei Mediului

Ministry of Water Resources, Forestry and Environmental ProtectionM & E Monitoring and EvaluationMF Ministerul de Finante Ministry of Finance

General Directorate for International Financial RelationsMJ Ministerul de Justitiei Ministry of JusticeMLPAT Ministerul Lucrarilor Publice si Amenajaril Teritoriului

Ministry of Public Works and Regional PlanningN/A Not ApplicableNBF Non-Bank-FinancedNCB National Competitive BiddingNPV Net Present ValueNS National ShoppingOCOT Oficiul de Cadastru si Organizarea Teritoriului

Existing local cadastre offices in each judet subordinated to MAAOJCGC Oficii Judetean de Cadastru Geodezie si Cartografie

New local cadastre offices in eachjudet to be subordinated to ONCGCONCGC Oficiul National de Cadastru Geodezie si Cartografie

National Office for Cadastre, Geodesy, and CartographyPC Personal ComputerPCD Project Concept DocumentPCU Project Coordination Unit of Ministry of Justice and ONCGCPHRD Policy and Human Resources DevelopmentPIP Project Implementation PlanPSC Project Steering CommitteePY Project YearQCBS Quality and Cost Based SelectionRFP Request For ProposalsSOE Statement of ExpensesTA Technical AssistanceTitlu (plural titluri) Titlu de proprietate. Certificate issued to confirm transfer of land into

private ownership under Law No. 18 of 1991USAID United States Agency for International Development

I

ROMANIAGENERAL CADASTRE AND LAND REGISTRATION PROJECT

Project Appraisal Document

CONTENTS

A: PROJECT DEVELOPMENT OBJECTIVES ................................................................ 21. Project development objective and key performance indicators ............................................................... 2

B: STRATEGIC CONTEXT ................................................................ 21. Sector-related Country Assistance Strategy (CAS) goal supported by the project ..............................................22. Main Sector Issues and Government Strategy ............................................................... 23. Sector Issues to be Addressed by the Project and Strategic Choices ............................................................... 4

C: PROJECT DESCRIPTION SUMMARY ................................................................ 51. Project components .............................................................. 52. Key policy and institutional reforms supported by the project .................................. ............................ 53. Benefits and Target Population ............................................................. 64. Institutional and lmplementation Arrangements ............................................................. 6

D: PROJECT RATIONALE ........................................................................... 71. Project alternatives considered and reasons for rejection ..................... ........................................ 72. Major related projects financed by the Bank and/or other development agencies ........................... ...................83. Lessons Learned and Reflected in the Project Design .............................................................. 94. Indications of Borrower Commitment and Ownership .............................................................. 95. Value-added of Bank Support in this Project .............................................................. 9

E: SUMMARY PROJECT ANALYSIS ............................................................... 101. Economic ............................................................. 102. Financial ............................................................. 103. Technical ............................................................. 114. Institutional .............................................................. l5. Social . ............................................................ 116. Environmental Assessment ............................................................. 127. Participatory approach ............................................................. 12

F: SUSTAINABILITY AND RISKS ............................................................... 121. Sustainability .............................................................. 122. Critical Risks ............................................................. 133. Possible Controversial Aspects ............................................................. 14

G: MAiN LOAN CONDITIONS ............................................................... 14Conditions of Disbursement ............................................................. 14

H. READINESS FOR IMPLEMENTATION ............................................................... 15

I. COMPLiANCE WITH BANK POLICIES ................................................................ 1 5

CONTENTS (cont'd)

Annex 1: Project Design Summary .......................................... 16

Annex 2: Detailed Project Description ......................................... 19

Annex 3: Estimated Project Costs ......................................... 21

Annex 4: Cost Benefit Analysis Summary ......................................... 22Projected Incremental Revenues

Annex 5: Financial Summary ......................................... 24Fiscal Impact ......................................... 24

Annex 6: Procurement and Disbursement Arrangements ......................................... 25

Annex 7: Project Processing Budget and Schedule ......................................... 31

Annex 8: Documents in the Project File ......................................... 32

Annex 9: Status of Bank Group Operations in Romania ......................................... 33

Annex 10: Romania at a Glance ......................................... 34

MAP IBRD 29011

ROMANIAGENERAL CADASTRE AND LAND REGISTRATION PROJECT

Project Appraisal Document

Europe and Central AsiaCountry Department

Date: 11/10/97 Task Team Leader/Task Manager: Kundhavi KadiresanCountry Manager/Director: Kenneth G. Lay Sector Manager/Director: Kevin CleaverProject ID: RO-PA-34123 Sector: General Program Objective Category: Economic ManagementLending Instrument: Specific Investment Loan Program of Targeted Intervention: [ ] Yes [X] No

Project Financing Data [X] Loan [] Credit [ Guarantee [ Other[Specifyl

For Loans/Credits/Others:

Amount (US$m): US$25.5 millionProposed terms: [] Multicurrency [x] Single currency, US dollarGrace period (years): 5 [] Standard Variable [ Fixed [x] LIBOR-basedYears to maturity: 20Commitment fee: 0.75%Service charge: none

Financing plan (US$m):Source Local Foreign TotalGovermnent 11.8 0.0 11.8IBRD 8.6 16.9 25.5

Total 20.4 16.9 37.3

Borrower: RomaniaGuarantor: N/AResponsible agency(ies): National Office of Cadastre, Geodesy, and Cartography (ONCGC); Ministry of Justice(MoJ)

Estimated disbursements (Bank FY/US$M): 1998/99 1999/00 2000/01 2001/02 2002/03Annual 1.5 3.0 7.0 8.5 5.5

Cumulative 1.5 4.5 11.5 20.0 25.5

Project implementation period: 1998 to 2003 Expected effectiveness date: May 25, 1998Expected closing date: December 31, 2003

OSD PAD Form: November 10, 1997

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A: PROJECT DEVELOPMENT OBJECTIVES

1. Project development objective and key performance indicators (see Annex 1):

The project aims to:

(a) Establish an efficient system for securing land titles of real estate owners which can be expandednationwide;

(b) Create a general cadastre system which provides clear and current definition of real estateparcels which form the basis for real estate registration; and

(c) Set up a simple, safe and cost effective procedure for land transactions.

As such, the project is a fundamental public infrastructure necessary for a market based economy.

B: STRATEGIC CONTEXT

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project (see Annex 1):

CAS document number: 16559 RO Date of latest CAS discussion: June 3, 1997

The Bank's strategy entails support for sectors in which there is progress in reform. With thisstrategy, the Bank seeks to assist Romania to improve substantially the macroeconomic framework,support private sector development, and create a better policy environment. In agriculture, key elementsof the strategy are to support completion of land reform and privatization of productive assets.Development of land markets is considered a priority requiring revision of existing laws that limit landmarket development and establishment of secure land registration and titling mechanisms.

Revisions of aspects of the land laws that limit land market development are being promoted bythe Bank's recent ASAL. The proposed project supports the CAS objective by helping to establish anefficient system for securing land titles and a cost-effective mechanism for land transactions. Theproject would be the Bank's first institutional development effort in this area.

The proposed project has a strong focus in support of Romania's ongoing privatization efforts,especially of real estate and state enterprises. By facilitating land transactions, the project will helpconsolidate economically non-viable agriculture farm units and facilitate the sustainable, efficient use ofland, other natural resources and infrastructure. The project would also support key Bank objectives ofencouraging private sector development by providing opportunities for local private companies inmapping, surveying and data entry.

2. Main sector issues and Government strategy:

One of the early and most significant reforms of the government that came to power inDecember 1989 was the restitution of private rights to land and privatization of residential apartmentsand houses. The Land Fund Law No. 18 of February 1991 reinstated land and property rights in areaswhich had been collectivized and made provision for a Law on General Cadastre and Real EstatePublicity as the enabling mechanism to provide a basis for issuing legal titles to the reinstated propertyowners. By July 1997, almost 70% of the 4.3 million applicants who had applied under Law 18 forrestitution of land and property in the former collective farms had been issued with titluri de proprietate,the certificates that confirm the transfer of land into private ownership. Nearly all the occupiers of

Page 3

residential apartments have taken the opportunity to acquire their ownership titles. Privatization of stateenterprises also included the transfer of the associated land and property into private ownership.

Following the land restitution, about half of the rural households operate farms averaging 1-3 ha,each of which is subdivided into 3-5 parcels preventing optimal use of land. Limited progress has beenmade toward land consolidation, except through legal or informal associations, hindering transition in theagriculture sector. Land transactions in the rural extravilan areas were restricted -- pending earlier plansto have a Government agency established to regulate land sales -- leading to the development of aninformal land market in these areas.. This is expected to change with the revision in the Land Law. Themechanism for selling or leasing derelict land in urban areas which belongs to state enterprises ormunicipalities needs to be strengthened-to encourage more intensive use of land and property.

Two systems of land registration operate in Romania -- a Civil Code system of inscription andtranscription which is a deeds registration system, and the land book or Grund Buch system, which is atitle registration system. Both the systems fell into disuse during the communist regime as most of theland was collectivized and no records of parcels and of ownership were maintained. Although both thesystems are being revived, lack of uniformity between the systems, and inadequate and outdatedcadastral maps have constrained property registration. The new Law No. 7 of 1996 for General Cadastreand Real Estate Publicity recognizes the advantages of the land book system, which registers propertiesrather than individual transactions, and provides the legal framework to establish a uniform system to beintroduced progressively throughout the country.

Aside from lack of legal sanction for land transactions, the main obstruction to the developmentof a systematic cadastre and land registration system in the country has been the lack of coordinationamong government agencies. The administration of urban and rural land was divided among severalministries and the linkages between land and property ownership, and land use and the construction ofbuildings and other -permanent structures on the land, are only now being re-established. A new agency,the National Office for Cadastre, Geodesy and Cartography (ONCGC), was established in November1996 through a Governmental Decree with responsibility for the general cadastre in both urban and ruralareas. The Ministry of Justice is taking a pro-active role in reestablishing the Land Book registrationsystem.

Real estate markets seem to be insecure. It is not easy for potential buyers to find the owner of aparcel of property that they are interested in buying, for several reasons: the existing records areincomplete; the procedures are time consuming; and the land registration offices do not divulgeownership information to the public without the owner's consent. Moreover, the courts are inundatedwith real estate cases, which can take up to five years to resolve. A fast, secure and transparent systemof registration would protect all legal interests in lands and property, reduce the risk of fraud, createconfidence among owners to improve their property, and provide access to credit at more reasonableinterest rates.

The legal framework is now in place and there is clear division of responsibility between theNational Office for Cadastre, Geodesy and Cartography and the Ministry of Justice. Under thecircumstances, a key next step is the establishment of a general cadastre (focusing on the propertyownership) in both urban and rural areas and a nationwide uniform land book registration system whichwould issue land titles to land owners. Government is keen to introduce the uniform parcel-based landregistration system in as many parts of the country as possible.

Page 4

3. Sector Issues to be Addressed by the Project and Strategic Choices:

The project would address issues related to: (a) providing security for private propertyownership rights; (b) establishing a simple institutional set up for safe and cost effective landtransactions; and (c) allowing open access to real estate ownership information that would encourage atransparent land market. It would support Government's agenda for private sector development byproviding true private ownership of the most fundamental and widespread asset -- land -- and bypermitting property to be used as collateral for further investment. By facilitating land consolidation itwill also lead to more productive land use.

The project would provide the basis to record and protect property rights by setting up a legallybacked land book ;egistration system. Three approaches would be adopted to reduce the time required tointroduce the land registration system nationwide. The method of registration based on systematicgeneral cadastre, as proposed in Law 7 of 1996, would take many years to implement nationwide andthus not satisfy the immediate needs of property owners and financial institutions to buy, sell, lease andmortgage real estate. Therefore, systematic cadastre would be introduced in selected judets and extendedyear by year. It has the advantages of lower unit costs per property registered and provides a completeand current record of land and property ownership and land charges such as mortgages. The secondapproach caters to the immediate needs of reinstated landowners in former collectivized areas to registertheir property and any subsequent transactions by entering their titluri de proprietate into databaseswhich would be scrutinized prior to registration. This method can be extended more rapidly and at lowcost. Sporadic registration on demand would be introduced wherever Land Book Offices have beenestablished. This method would be used to extend the registration service much more rapidly across thecountry but has the disadvantage that, where new surveys of property boundaries are required, the unitcost per property may be as much as five times more expensive than systematic cadastre. The cost-effectiveness and public acceptance of each method would be monitored and the proportions of eachadjusted accordingly.

Under Law 18 of 1991, agricultural land, which had been collectivized in uneconomically largeunits, has been redistributed to the previous owners and their heirs into uneconomically small andfragmented parcels. About one third of the new landowners are reported to be living in towns and tohave no interest in farming themselves. The project relies upon the operation of the market toconsolidate land into economic units, to move underutilized assets into more intensive use, and toprovide an exit route for owners who want to sell or lease, or who prove to be uncompetitive as farmersor businessmen. The Government has abandoned as unworkable the alternative of setting up a RuralDevelopment Agency to regulate the market for agricultural land and offer preemption rights to the state.

Aside from the above strategic choices of relying on the market mechanism to determine holdingsizes, and among methods of land registration to be employed, the principal operational choice for thisproject was between public and private sector execution of mapping, cadastral survey and other relatedwork. Because of the difficulties in recruiting staff on government salaries and the consequent lack ofincentives, the project would depend heavily on the private sector for mapping and data entry work,licensed surveyors to execute cadastral surveys and private notaries for conveyancing. The private sectoris expected to be more responsive to changing requirements and volumes of demand. This would releasethe full resources of ONCGC and MoJ to concentrate on strategic issues, quality control, standards,supervision, and record maintenance.

Page 5

C: PROJECT DESCRIPTION SUMMARY

1. Project components (see Annex 2for a detailed description and Annex 3 for a detailed cost

breakdown):

Cost incl. % of Bank % of BankComponent Category Contingencies Total Financing Financing

____ ____ ____ ____ ____ ____ _(US$M) (US$M) _

A. Development of Cadastre PhysicaV 22.5 60.3 16.9 75.1

Support aerial photography, base map Institutionaldevelopment, cadastral surveys and BuildingLand Information System; strengthenNational Office for Cadastre, Geodesyand Cartography (ONCGC) and thelocal cadastre offices (OJCGCs);support the Cadastre ImplementationGroup that would manage the cadastrecomponent of the project _

B. Establishment of Land Book Physical/ 12.1 32.5 6.3 52.1System Institutional

Operationalize 76 land book offices in building18 judets in suitably equipped officeswith an automated land book system;train staff in the new land book system;provide institutional support for thelocal land book offices and the LandBook ITnplementation Group in MoJ toexecute the land book component. _

C. Institutional Strengthening Institutional 2.7 7.2 2.3 85.2Support for the Project Coordination Building/Unit (PCU); TA to guide the Projectimplementation trials and to enhance the Managementplanning and management capacity ofthe project agencies; InforrnationSystem Design and Development for thecadastre and land book; and assistanceto carry out cost recovery studies.

Total 37.3 100.0 25.5 68.4

2. Key policy and institutional reforms supported by the project:

The project would support some of the policy reform measures that are now being implemented

by the Government to unleash the potential of the private sector in the country. One of the areas of focus

of the FESAL is to promote private entrepreneurship and efficiency by simplifying main stream methods

of privatization. Similarly, the Bank's ASAL is geared to reforming the land market through laws

clarifying and better regulating the land market transactions. It also is aimed at ending directed credit,

privatizing state owned agricultural enterprises and focusing Government's role towards support of

private farming. Given the importance of real estate's share of a country's tangible capital, averaging

Page 6

about 60-70%, establishing a secure, efficient and cost effective land registration system should have amajor impact on these reforms taking place in the various sectors.

The project per se promoted institutional changes in the government administration of real estateownership information which was spread over several agencies/ministries. To simplify the institutionalset up, a single agency independent of existing ministries to manage the cadastre for both urban and ruralareas, was strongly favored. This was supported by Law 7 of 1996, followed by Government action toestablish the ONCGC to be primarily responsible for the general cadastre and Ministry of Justice for landregistration. The project would promote and encourage the participation of the private sector inexecuting a large part of the routine operations with project agencies performing mainly a supervisoryand quality control role.

3. Benefits and Target Population:

The project is estimated to cover about 3 million hectares of rural land and 75,000 ha of urbanland. The project would offer major benefits in -two ways. First, it would promote the protection ofrecently restored land rights and establishment of an accessible and transparent land registration system,both of which are necessary conditions for land market development. Secure land rights are fundamentalto the economic transition and would provide economic benefits over the medium to long term. Second,the project would encourage private sector investment and provide easier access to credit using land andproperty as collateral. A large proportion of the population have received assets in the form of smallland parcels or apartments. The ability to dispose of assets or derive income from them will beparticularly beneficial to pensioners and city dwellers with agricultural parcels. Furthermore, the projectwill help in the protection of the environment through improved data on current land use. Secureproperty rights, which the project would support, are expected to foster prudent use of land and naturalresources. The project would also support effective urban and rural planning, utilities, communicationsand transportation providers, which require information on land use and ownership.

The target population comprises current and future real estate owners, private investors inagriculture, housing and industry, commercial banks and other users of land ownership information.

4. Institutional and Implementation Arrangements:

Implementation period: Five years (FY 1998 - 2003)Executing agencies: National Office for Cadastre, Geodesy and Cartography (ONCGC) and Ministry ofJustice (MoJ)

Project coordination: Project coordination between the executing agencies would be assuredthrough a small "Project Coordination Unit" (PCU) within the Ministry of Justice. The day-to-dayoperation of the cadastre and land registration components would be undertaken by a "General CadastreImplementation Group" (GCIG) in ONCGC and a "Land Book Implementation Group" (LBIG) withinthe Ministry of Justice. A Project Steering Committee (PSC), comprised of representatives fromMinistry of Finance, ONCGC and MoJ will provide overall policy and operational guidance for theproject.

The PCU would consist of a Project Director, Operations officer, accountant and a Bilingualsecretary on a full time basis. A member from the Cadastre Implementation Group and the Land BookImplementation Group will represent their respective groups in the PCU to ensure coordination andcooperation between these two implementing agencies. The PCU would be responsible for overallproject coordination and implementation of the institutional strengthening component. Procurement of

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TA and services common to both cadastre and land book components would be done by the PCU.Procurement related only to cadastre or the land book component would be done by their respectiveImplementation Groups. The Project Coordination Unit would coordinate the annual work plansprepared by the Implementation Groups, define the actions needed to ensure timely projectimplementation and what cooperation or participation may be needed among participating departments toensure effective implementation. It would also help coordinate the annual budgets prepared by the GCIGand the LBIG. The PCU would also handle all correspondence and liaison with the Bank, prepare statusreports for the Project Steering Committee (PSC), organize meetings, prepare semi-annual progressreports, ensure that procurement is initiated and withdrawal applications are completed expeditiously,and coordinate and liaise with all local offices. The PCU would report directly to the SteeringCommittee and serve as its secretariat.

Accounting, financial reporting and auditing arrangements: The PCU, GCIG and the LBIGwould maintain separate accounts in accordance with International Accounting Standards covering alltransactions related to project activities and would prepare annual statements of receipts andexpenditures based on these accounts. The PCU will be responsible for overall project accounts and willprepare the financial statements for the project as a whole. The GCIG, LBIG and the PCU will be staffedby suitably qualified accountants to carry out the financial and accounting practices properly. As acondition of negotiations, the implementing agencies provided to the Bank their existing financialmanagement, internal controls and accounting system to ensure they are fully capable of managing theproject. A final assessment of the system would be made by the Bank during project launch workshop.The results and recommendations of this assessment would be implemented within four months ofproject start. Project financial statements would be prepared in accordance with Bank guidelines andmodels by the PCU. Supporting documentation would be made available to Bank missions andindependent auditors as required. Project accounts and the Special Account would be audited inaccordance with the International Standards on Auditing (ISA) and World Bank's guidelines. Auditreports would be provided to the Bank within six months after close of the Government's fiscal year, i.e.by June 30 of each year.

Monitoring and evaluation arrangements: Project monitoring and evaluation would be theresponsibility of the PCU based on data gathered by the GCIG and the LBIG from their respective locallevel offices. A foreign M&E expert would assist the PCU during PY 1 to design a simple managementinformation system for M&E, reporting formats for each component, including targeted annualperformance objectives and monitoring indicators using Annex 1 details as the basis. Project progresswould also be monitored through Bank supervision missions and semi-annual reports submitted for Bankreview. A mid-term review would be conducted by the Bank and the Government where overallprogress will be assessed. The project design would be adjusted if needed. An ImplementationCompletion Report (ICR) would be prepared within six months after the loan closing.

D: PROJECT RATIONALE

1. Project alternatives considered and reasons for rejection:

Alternative project designs were considered, including a project focusing exclusively on ruralland and a project using the prevailing institutional framework. Since the most critical land tenure issuesare expected to arise along the border between urban and rural land, a cadastre covering both the areaswas considered to be essential. A uniform cadastre for the urban and rural areas would also help put inplace a consistent and common procedure and make maximum use of the institution and capacity

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building investments that will be part of the project. Further, with urban areas having greater scope andpotential for property taxes, adequate coverage of priority urban areas is considered essential.

Consideration was given to working within the existing institutional set up, involving theexisting multi-agency arrangement, to implement cadastre and land registry in Romania. It was clearthat this would pernanently complicate and fragment this critical activity in the country. Therefore, itwas agreed to adopt a simpler institutional set up for the project with two executing agencies (ONCGCand MoJ) representing the interests of all ministries.

On technical grounds, a project focusing exclusively on property registration under the Ministryof Justice was rejected as this approach would take more than a century to implement throughout thecountry. A project focusing on just systematic registration of all property rights was rejected as thiswould be extremely expensive and would not cater to the current need for a system that would enabletransactions to occur quickly and cheaply. A no-project scenario would perpetuate the existing twodifferent registry system involving several agencies, with no clear responsibility and accountability.There is an urgent need to harmonize the existing property registries so that the potential economicbenefits of a well functioning land administration system can be achieved.

2. Major related projects financed by the Bank and/or other development agencies (completed, ongoingandplanned):

Sector issue Project Latest Supervision (Fonn 590) Ratings(Bank-financed projects only)

Implementation Development____________________ Progress (IP) Objective (DO)

Bank-financedRevise aspects of the land laws that impedeland market development ASAL (July 1997) NA NAOther development agenciesLand Reform (supporting privatization of EU-PHARE Landformer collective farms under Law 18) Reform project (1992-

present)

Land titling pilot in two judets to test the EU-PHARE Pilotstechnology and organizational procedures (1995-96)for land registrationImproving the land valuation expertise in EU-PHARE (1997-98)RomaniaDensification of the Geodetic Network USAID - (1994-96)using GPS receivers to strengthen geodeticcontrol and facilitate use of GPStechnologyDrafting Regulations for Land Registration Canadian International

Development Agency(1996-97)

Defining a strategy for the ONCGC Canadian InternationalDevelopment Agency(1996-97)

IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory).

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3. Lessons Learned and Reflected in the Project Design:

Previous Bank involvement in land reform and management in Romania has been limited toconsultancy studies aimed at identifying the major priorities in initiating cadastral work. Experience inother countries suggests that effective implementation of cadastre and land registration projects dependson a clear legal framework, a simple institutional structure, long-term Government commitment, andopen access to the resulting land information. These concerns have been taken into account in theproposed project design. Romania now has a reliable legal framework. The cadastre law, privatenotary's law, and the copyright laws, which directly impact the project, are in place. The responsibilitiesof the executing agencies have been clarified by allocating the overall responsibility for the generalcadastre to ONCGC and land registration to the Ministry of Justice. The proposed project would usemodem technologies which are cost effective, efficient and easy to use. However, they would be phasedin gradually as staff skills and institutional capacity are enhanced through technical assistance andtraining during the first phase of the project. Special attention will be needed to plan and sequence tasksdue to the specialized nature of the expertise and equipment required and the problems associated withthe coordination of aerial photography, map production, cadastral surveying, registration and issuance oftitles.

4. Indications of Borrower Commitment and Ownership:

The project was considered a priority by the Romanians as early as 1991. Masterplans for theagricultural, urban and fiscal cadastres were developed with Dutch Trust Funds in the early 1990s.Following the Agriculture Sector Strategy review in 1993, the Government and the Bank identified anurgent need for a cadastre and land registration project covering urban and rural areas. The project wasincluded in the core lending progran of the Bank. Government established a high-level Inter-MinisterialCommittee to guide the Bank missions to develop the project. Although the project was ready forappraisal in 1995, project processing was on hold pending passage of a progressive but controversialcadastre law in Parliament. This law was passed in July 1996. A Government Decree in November 1996clarified the responsibilities of the implementing agencies. Thereafter, a National Office for Cadastre,Geodesy and Cartography (ONCGC) became effective in November 1996 and a President of ONCGCappointed. A core group of staff (drawn from seven ministries) started work in January 1997. WithCIDA assistance, ONCGC has developed a national strategy for cadastre and the Ministry of Justice hasprepared the regulations for implementing the land book registration. The Government has allocatedONCGC a budget for the first year to begin work. The guidelines for licensing of surveyors are alreadyin place and local cadastre offices are established in several judets.

5. Value-added of Bank Support in this Project:

As it has throughout project preparation, the Bank would play a key role in assisting theGovernment's efforts to put an efficient and cost-effective general cadastre and land registration systemin place. Financial and technical assistance provided by other donors in this area in recent years, whileinvaluable in starting cadastral activities, has not always been well-coordinated. Bank involvementwould provide essential foreign exchange and the necessary discipline to define a clear program, set andmonitor performance targets for quality of service and cost-effectiveness and avoid adoption ofunrealistic technical standards and dependence on over-sophisticated computer systems.

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E: SUMMARY PROJECT ANALYSIS

1. Economic:

The primary objective of the project is to provide secure land ownership rights and to facilitate theoperation of the land market. As such quantification of economic benefits of the project is difficult givenits overall "public good" character. The focus of the project is to put in place a public infrastructurenecessary to activate a land market and to build institutions. Economic benefits for projects of thisnature are difficult enough to assess in economies with a tradition of private land use and whereinformation on land values based on an open land market is available. Here such an effort would bepurely speculative. Therefore, only a financial analyses and cost recovery estimates have been prepared.

2. Financial (see Annex 5): NPV= US$$20.1 million; FRR = 17.4%

The cost of the systematic cadastre and first registration of restituted land titles is required byLaw No. 18 to be borne by the government as the final stage in restoring private ownership rights.However, the cost of maintaining the cadastre and the titles would be partially recovered from users ofthe land information. It is recognized that the sustainability of the cadastre and land book registrationdepends upon achieving steadily increasing revenue from fees for the registration of subsequenttransactions and associated cadastral surveys. The project would encourage a partial recovery of costsby: (a) charging a registration fee for the services of the land book involving creation or modification ofrecords; (b) fees for searches and providing copies of registers; and (c) sale of geodetic data, maps andother land information. The Land Book Offices should eventually become self-financing from feerevenue, and ONCGC and its local offices would set targets to recover a growing proportion of itsexpenditure from sales revenue.

The FRR computed assuming conservative estimates for benefits in the modeling of costs andreturns is 17.4%. The NPV in financial terms would amount to $20.1 million.

Fiscal impact:. Incremental recurrent costs of the project that would be financed by the Governmentduring the project period would average about US$ one million (excluding taxes) per year. Annualbudgetary contributions to the project -- including both investment and recurrent costs -- from totalGovernment revenues amount to 0.01% in 1998, 0.01% in 1999, 0.02% in 2000, 0.02% in 2001 and0.02% in 2002. These can be easily absorbed within the budget. Government financing of projectrecurrent costs beyond the investment phase of the project is also not expected to be a problem as theproject is expected to generate revenues that would cover part or whole of those costs. Implementationof action plans resulting from a major cost recovery study to be undertaken within the first two years ofthe project would be covenanted in the Loan Agreement.

Although during the project period, the project is not expected to generate much revenues, in 20years the projected annual incremental net revenues from registration fees, sale of maps, and other landownership related information searches is estimated at $22 million (see annex 4). SubstantialGovernment savings will be achieved by significantly reducing the number of land disputes and the timeit takes for the courts to resolve them and by reducing and eliminating duplication among governmentagencies in the production of base maps and cadastre maps. ONCGC will be the primary agencyresponsible for archiving of existing base maps and cadastre maps and developing of the future generalcadastre maps. Copies of maps will be available for other government agencies and the public for a fee.

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3. Technical:

The project design has had two main foci: (a) set up a simple and cost effective cadastre andland registration system, using data already available wherever possible, to meet the immediate needs;(b) develop a general cadastre and land registration system that will cater to the long-term landinformation needs of a modern market based economy. Models from developed systems were used fromWestern Europe, particularly Austria and Germany. The project has provided flexibility to make use ofnew technology as it develops in the area of mapping, surveying and computerization (e.g. remotesensing by satellite imagery may replace some of the mapping from aerial photography if the technologybecomes available, as planned, next year). Also, considering the implementing capacity, a realistic planfor transfer from paper to information technology in land registration and cadastre management andmapping was developed. The proposed land registration system embodies both the sporadic andsystematic method of first registration, including conversion using existing information. By this method,it is expected that a complete registration of all parcels nationwide can be achieved in a timeframe of 15-20 years.

4. Institutional:

a. Executing agencies: The ONCGC is a new agency entrusted with the task of establishing thegeneral cadastre. The agency is trying to recruit qualified staff. Staff turnover seems to be a major riskgiven low public sector salaries relative to the private sector. The project has included TA and trainingto mitigate this risk. The local private sector industry capacity in mapping, surveying and computer datacompilation work would also be fully tapped. Since the local cadastre offices are new, their tasks wouldbe concentrated on maintaining standards, supervising and validating work contracted out to the privatesector and maintaining the archives and distributing data to users. The Ministry of Justice, on the otherhand, is reasonably well prepared and staffed to implement the project. The project would adopt aphased approach to project implementation considering the institutional capacity and skills of the staff.

b. Project management: Project Management would be spearheaded by experienced staff of theGeneral Cadastre Implementation Group and the Land Book Implementation Group, supported by asmall Project Coordination Unit.

5. Social:

Romania's constitution recognizes and guarantees the rights of women to own, transfer andpurchase land and property. There is gender neutral legislation concerning division of assets (includingland and buildings, in the event of inheritance or divorce) between men and women. According toArticle 12 (3) of Law 18, property titles are issued to all the heirs (male and female) of the originalowners, after which, the heirs divide the land among them in accordance with the regular legalprovisions concerning joint property. This legal protection granted to women provides equal access andcontrol to land and property in Romania.

Land registration would also have a significant positive social impact by preventing or at leastreducing the number of property disputes in the project areas. Agriculture land ownership pattern whichis now concentrated among the old and includes about 30% of owners who now live in urban areas andhave little interest in farming is bound to change once a safe and cost-effective land transaction systememerges.

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6. Environmental assessment: Environmental Category []A [l B [xl C

The project has no major environmental issues and the overall environmental impact is expectedto be positive. Improved land registry information would help in surveying and monitoring land use byenvironmental agencies. Private land ownership supported by the proposed project can be expected tofoster more prudent use of land and natural resources.

7. Participatory approach [key stakeholders, how involved, and what they have influenced; ifparticipatory approach not used, describe why not applicable].

a. Primary beneficiaries and other affected groups: The primary beneficiaries would be the present andfuture real estate owners, private investors, commercial banks, real estate agencies, municipalities,Government ministries and agencies dealing with specialized cadastres.

b. Other key stakeholders: Academic institutions, the Ministry of Defense, local government, otherusers of land information.

The project preparation team consulted extensively with representatives from local Government,academic institutions and donor agencies in the design of the project. An Inter-Ministerial Committeerepresenting seven sector ministries provided significant input to the project as they are dependent on thegeneral cadastre to develop their specialized cadastres. Local Governments have a particular interestbecause land tax is expected to be a major source of their revenue in future. The Ministry of Defensewas closely consulted to allow access to data on the geodetic points and to permit foreign companies tofly aerial photography and produce orthophotomaps. Extensive discussions with real estate agents,commercial bank officials and farmers have been useful in the design of the project. All the keystakeholders would be consulted and invited to provide copies of existing land records during the projectimplementation to avoid duplication of effort and ensure that the general cadastre and land registers meetthe real needs of the users.

F: SUSTAINABILITY AND RISKS

1. Sustainability:

Heavy emphasis on institutional strengthening, training and TA would help put into place aqualified cadre of administrators and technicians to undertake and sustain the general cadastre and landregistration. To this end, TA and training to project staff would be concentrated in the early years ofproject implementation.

Local operating costs are expected to be met in part by a policy of progressive cost recovery bycharging realistic fees for registering transactions and selling maps and land information to all users,both government and private. The Ministry of Finance has agreed in principle that fees for servicesrendered by OJCGCs and LBOs would be retained to recover part of the operation and maintenancecosts of these local offices. A comprehensive cost recovery study will be undertaken in the first year ofthe project to: (a) review the sources of revenue generation for the cadastre and land book offices andrecommend realistic charges for services and products; and (b) develop institutional mechanisms andlegal approvals needed to permit these revenues to be retained by the OJCGCs and LBOs. This studywould be undertaken in close consultation with MoF, the project agencies and local administration. Theconclusions of the study and action plans proposed would be submitted for Bank review by end of theyear 1999, and would be noted as a dated covenant in the Loan Agreement.

The project design would ensure that the land registers and cadastral index maps are maintainedcontinuously by recording land transactions as they occur and the topographical maps are updated on a

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periodic basis. Disincentives to land registration such as high fees and taxes on registration would bediscouraged and local publicity campaigns fmanced by project to explain the benefits of registration tothe users would be organized.

2. Critical Risks (reflecting assumptions in the fourth column ofAnnex 1):

Risk Risk Rating Risk Minimization Measure

Project Output to Development ObjectivesPublic support to register land Light/ Public campaign is planned to create greater

moderate awareness on the benefits of land registration amongproperty owners, financial institutions and otherusers of general cadastre and real estate registration.Registration fees will be kept at an affordable level.

Project Components to OutputsInstitutional capacity of project agencies Moderate TA both from foreign and local experts is planned in

the early part of the project. Practical hands-ontraining will be imparted to project staff in the localoffices in the first phase of the project to becomefamiliar with the procedures and systems being putin place by the project. Suitable space for the landbook offices and Judet cadastre offices is beinglocated prior to project effectiveness. Most of thecadastral surveying and mapping would becontracted out to the private sector.

Staff recruitment in ONCGC and the High Low salaries are bound to be a disincentive to attractJCGCs; MoJ and land book offices and retain skilled staff in ONCGC, MoJ and the local

cadastre and land book offices. Incentives by way ofhigher per diems and opportunity to participate ininternational training programs are expected to keepstaff turnover low.

nstitutional cooperation Moderate Protocols have been prepared between ONCGC andvarious ministries/agencies to ensure cooperationand data sharing. PCU, which would haverepresentation from ONCGC and MoJ, will help tobring about improved coordination between thesetwo agencies.

Targets not achieved Moderate Targets will be kept at a realistic level in the project.TA and training on procurement is expected to keepthe program on track. Most of the survey work willbe contracted out to the private sector and will befinanced from the loan amount so that tasks arecompleted in a timely manner.

apacity of private sector Moderate Extensive discussions were held with the privatesector in the surveying and information technologyindustry to build awareness in terms of the type,extent and quality of work expected of them. Shorttraining sessions are planned, during the project,for the private sector surveyors. Several smallcontracts would be let during the first year of the

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Risk Risk Rating Risk Minimization Measure

project to test and gradually build the private sector'scapacity to undertake project work. The size andnumber of contracts would be progressivelyincreased as their capacity and expertise to executethe work increases.

Maintain and update cadastre and land Moderate Completion of the cost recovery study within theregistry PY2 as a covenant in the Loan Agreement and

implementation of its recommendations to cover thecost of maintenance of the cadastre and land registrysystem being put in place.

Open access to information on landowner- Moderate Romania has made substantial progress toward theship, geodetic data, aerial photography, maps release of government information. Agreement hasand land information to the public, private been obtained in principle from Ministry of Defense,surveyors and notaries, and other users Romanian Intelligence and the project agencies to

allow access to information to potential users.Overall Project Risk RatingOverall Risk Rating Moderate Overall project risks will be mitigated through

lessons gained from the implementation trials in thefirst 18 months of the project; emphasis given to TAand training is expected to balance the concerns onthe capacity of the project agencies; risks associatedwith technical and administrative operations thatmight progress slowly, or less cost-effectively, or failto achieve the quality of service required will bereduced by involving the private sector, andproviding specific training and technical assistanceto project staff. Emphasis will be given to closesupervision by the implementing agencies and theBank, an early project launch workshop, andprogress reviews twice yearly against quantifiablemilestones.

Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk)

3. Possible Controversial Aspects:

None

G: MAIN LOAN CONDITIONS

Conditions of Disbursement:

As a condition of disbursement for payments relating to the land registration component of theproject, provisional regulations implementing the land registration system, satisfactory to the Bank, shallhave been issued.

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H. READINESS FOR IMPLEMENTATION

[] The engineering design documents for the first year's activities are complete and ready for the start ofproject implementation. [x] Not applicable.

[x I The procurement documents for some of the first year's activities are complete and ready for thestart of project implementation.

[x] The Project Implementation Plan has been appraised and found to be realistic and of satisfactoryquality.

I. COMPLIANCE WITH BANK POLICIES

[x] This project complies with all applicable Bank policies.

Signatures:

Team Lead •:ad

n ~~~~~~Hayward

Coun*tr Director: Kenneth G a

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Annex 1Project Design Summary

Narrative Summary Key Performance Indicators Monitoring and Critical AssumptionsSupervision and Risks

CAS Objective (CAS Objective to BankMission)

Develop land market in Increase in number of recorded Regular reports prepared Stable market situationRomania real estate transactions by 30% by local Monitoring &

by year 2003 in the project Evaluation consultant in Cooperation from notariesarea. the PCU in collaboration

with the foreign adviser. Successful publicity campaignand trust in governmentresulting in people making useof the registration system.

Project Development (Development Objectives toObjectives: CAS Objective)

(i) establish an efficient Land Book offices and cadastre A Set of disks and Access to existing legalsystem for securing land offices operational; procedures manuals; records at OCOTs and urbantitles which can be for a computerized (or manual) staff trained; computer authoritiesexpanded nationwide, (ii) system for land book office systems in operation;create a general cadastre and cadastre office and forms in place are being Sufficient licensed surveyorssystem which provides associated manual of usedclear and current procedures for operation The efficiency in transactiondefinition of real estate prepared by the year 2000. will take some time to filterparcels; (iii) set up through the system. Changesimple, safe and cost About a million titles Land registration records can not be expected until theeffective procedure for registered by end of project. latter part of the projectland transactions.

About 650,000 parcels Cadastre office recordssurveyed during the projectperiod.

About 3.1 million units will be Cadastre Office recordsentered in the OJCGCsdatabase.

Processing time for standard Inspection of Land Booktransactions (not involving Office application filessurveys) between applicationand actual registration at landbook offices within 3 days.

Alterations of land parcels and Inspection of Land Booktheir registration completed Office application fileswithin 15 days and Judet Cadastre Office

records

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Potential real estate disputes Land dispute courtreduced by 30% in the project recordsareas by end of the projectperiod;

Inquiries on real estate Land Book Officeinformation increased by 25% recordsby end of the project.

Project Outputs (Outputs to DevelopmentObjectives)

A computerized general Implementation trials System documents; A potential private sector incadastre system completed by 18 months. Periodic reporting and surveying, and data entry

Systematic cadastre supervision missions continues to grow.I computerized OJCGC withdatabase in operation by end of Sufficient staff can bePY2, 2 offices by PY3, 2 recruited, especiallyoffices by PY4 and 2 by PY5; considering the competitionSporadic cadastre and for expertise in the privateregistration: Eleven additional sector.OJCGCs to support thesporadic registration at the Sufficient staff can beLBOs created between PY3 transferred or recruited toand PY5. operate the system;

A fully operational land Land book system Periodic reporting and Public aware and informed ofbook system established commissioned in 2 land book supervision missions benefits of land registration

offices by end of PYI, 5 byend PY2, 23 in eachsucceeding year.

Public awareness Mass media spots seen by Review by Monitoring &campaign on benefits of viewers/readers Evaluation Consultantland registrationimplemented

Project Components (Components to Outputs)

PCU PCU established and equipped Periodic reporting and Sufficient personnel of thesupervision missions required caliber

LBIG/GCIG LBIG/GCIG established and Periodic reporting and Sufficient tenders fromequipped supervision missions. experienced companies at a

realistic priceContract for Information Contract awarded and system Set of installation disksSystem Development developed and associated manuals Suitable weather. No

government securityrestrictions preventing the

Contract for aerial Contract awarded and teams in Monitoring & Evaluation completion of the contracts inphotography, base place. reports the most cost effective manner;mapping, and I I_I

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orthophotography, Following tasks completed: Information systems in place atcadastre and data entry the right time for data entry;

Aerial photographyGPS densification Monitoring & Evaluation Staff training and TA in theMapping and reports. Contracts project is sequenced toOrthophotography produced completed. coincide with the equipment!Data entry completed systems introduced in the

project so that they are utilizedAreas surveyed: 12,000 sq. effectively;kms

Training of staff, 540 staff, managers and judges Monitoring & Evaluationsurveyors, notaries trained in the new land book reports. Training

system; contracts completed.

Public notaries trained;

2 study tours completed;

128 Cadastre Office stafftrained

Develop a program of General and specific public Monitoring & Evaluationpublic awareness campaign contracted reports. Contractsinformation and completed completed.

Leaflets distributed to real Monitoring & EvaluationRun publicity campaign estate agents, public reports. Contracts

information centers, TV/Radio completed. Survey ofspots run farmers, urban property

owners and businesses.

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Annex 2Detailed Project Description

1. Project Scope. The project is designed to establish a general cadastre and land registrationsystem in the urban and rural areas. Out of the 42 judets in the country, project coverage will be limitedto about 7 judets for a systematic land registration system and 18 judets for a sporadic land registrationsystem. These judets have been selected based on predetermined criteria. They include: (a) areas activeeconomically and with a potentially high volume of land transactions, (b) areas with high land values, (c)areas with potentially numerous land disputes, and (d) areas with adequate maps. Further considerationwas given to judets which are interested in establishing the cadastre and have adequate counterpart funds.

2. The project has taken into consideration the existing institutional and human resource capacity todevelop a cadastre in the country and will have two phases. The first phase would concentrate onimplementation trials, training and technical assistance to lay the groundwork for the major task ofsurveying, mapping, and land registration to take place during the second phase. Although a generalcadastre and land book system to cover the entire country will take many years, this project wouldprovide the finance to initiate that process in certain parts of the country by providing funding for highpriority investment, technical assistance and training.

3. Approach and Trials. The Project would support the introduction of sporadic registration ofreal estate in 18 judets and systematic cadastre and registration in 7 of those judets. Sporadic registrationwould be demand driven. Systematic registration would be focused on priority areas. The project wouldbe implemented progressively over the five years starting with strategic planning and trials to confirrnthe operational procedures for cadastre and registration which are best suited to the differing conditionsin the towns, plains, hills, and former collectivized farms.

4. Three trials are planned in the first year to test the following: (a) sporadic registration in anexisting land book area -- Brasov, is proposed -- followed by a similar trial in a formertranscription/inscription area, Racari district in Dimbovita judet; is proposed; (b) systematic registrationin Vulcana Bai, a comuna in Dimbovita (which was not collectivized) and in Targoviste where an urbancadastre is nearly complete, and (c) collection and entry of Law 18/1991 titluri de proprietate into thecadastre database and the land book registers (provisional) in Malu cu Flori, a formerly collectivizedcomuna in Dimbovita judet. Further trials will be undertaken in later years to test the cost effectivenessof aerial photography, low cost digital mosaics, and high resolution satellite imagery (see ProjectImplementation Plan for more details).

5. Bank financing would support an integrated computer hardware/software system for cadastredatabase and land book system, service contracts for aerial photography, GPS control densification,mapping, and orthophotography, cadastral surveying and data collection, rehabilitation of local cadastreand land book offices, and equipment and vehicles for the project implementing agencies. Salaries andoperating costs of the National Cadastre Agency (ONCGC), MoJ, local cadastre and land book officeswould be met from the government budget.

Project Component I -Development of Cadastre, US$22.5 million (total cost of component)

The cadastre component would help establish a general cadastre and systematic registration in seven judetsand sporadic registration in 18 judets of the country. This component would support:

(i) service contracts for aerial photography, control densification, mapping and orthophotographyand systematic cadastre undertaken by the private sector;

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(ii) system design, procurement and installation of a cadastre information system to manage thegeneral cadastre database;(iii) renovation and expansion of the local cadastre offices (OJCGCs);(iv) vehicles, furniture and office equipment for ONCGC and the local cadastre offices;(v) training and TA to strengthen ONCGC and OJCGCs.

Project Component 2 - Establishment of Land Book System, US$12. I million (total cost of component)

The land registration component would help establish a uniform land book system for the secureregistration of real estate parcels and associated rights. It would undertake registration of about onemillion titles in 76 land book offices serving 18 judets. The component would involve:

(i) renovation and expansion of 76 land book offices in 18 judets to make the new land booksystem fully operational;(ii) vehicles, furniture and office equipment for the land book offices;(iii) system design, procurement and installation of a computerized land book system;(iv) service contracts for data entry of real estate titles into the land book system;(v) TA and training for the land book judges, office staff, and notaries.

Project Component 3 - Institutional Strengthening, US2. 7 million (total cost of component)

In addition to the above two components the project will support:

(i) consultancy services to ONCGC and MoJ in the first few years of the project to strengthentheir capacity to manage and implement the project;(ii) a Project Coordination Unit (PCU) to ensure coordination in the operation of the two projectagencies;(iii) a national publicity campaign to create public awareness of the benefits of land registrationand the procedures to make use of it;(iv) a cost recovery study to quantify the market for land registration and cadastre and setrealistic fees and charges for services and data to recover a steadily increasing proportion of thecost of operations and maintenance of the cadastre and registers from revenues received fromusers.

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Annex 3Estimated Project Costs

(US$ million)

Project Component Local Foreign Total

Development of Cadastre 10.9 8.7 19.6Establishment of Land Book System 6.2 4.2 10.4Institutional Strengthening 0.4 2.0 2.4

Total Baseline Cost 17.6 14.9 32.5

Physical contingencies 0.9 0.7 1.6Price Contingencies 1.9 1.3 3.2

Total Project Cost 20.4 16.9 37.3

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Annex 4Cost Bencfit Analysis Summary

(US$ million)

Present Value of Flowsi Fiscal ImpactEconomic Financial

__ _ ___ Analysis Analysis Subsidies

Benefits NA 62.9 NA NA

Costs NA 42.8 NA NA

Net Benefits: NA 20.1 NA NAIRR: (%) NA 17.4

Probability that IRRis below 12% is negligible

Using a discount rate of 12%.2 Financial analysis here reflects the point of view of Government in relation to the costs it incurred and the

benefits that it is expected to derive directly from the cadastre and the land book registration system.

Main results:

6. The base estimate for the rate of return (FRR) associated with the project is 17.4% indicating thatthe project is viable and will not be a fiscal burden on the Government. The sensitivity analysis carriedout shows that the return on the project is robust to changes in costs and benefits. For instance, asimultaneous increase of project costs by 50% and decrease of benefits by 20% respectively will result inan FRR of 13%. (Details in the Project Implementation Plan.)

Main Assumptions:

7. The fees for title registration and for other services rendered by the Land Book Offices areassumed at $5 and $2, respectively, per parcel or case based on fee levels in other developing countries.Again, a conservative estimate has been used for incremental transaction fee from land relatedtransactions (sales, transfers, mortgages, inheritance, etc.), ranging between $5- $15 over the projectperiod for each transaction. The overall demand for services of the land book office is estimated to peakto about 2.8 million cases in 20 years. The capacity of the new land book offices to cater to the publicdemand for their services is expected to increase gradually over the project years and reach full capacityby year 12 in the project areas.

Externalities like land valuation increases and improved land tax collection that could result from thenew land book registration system are excluded from the analysis.

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Projected Incremental Revenues(US$ million)

Description Year 5 Year 10 Year 15 Year 20

Incremental Annual Gross Revenues 2.18 12.00 23.01 25.39

Incremental Cumulative Gross Revenues 3.41 42.62 143.82 265.92

Incremental Annual Net Revenues (7.69) 8.95 19.94 22.33

Incremental Cumulative Net Revenues (38.97) (15.03) 70.84 177.64

Overall, the project generates a gross revenue of $266 million over the 20 year period for which thefinancial analysis was done. The cumulative cost during this period is about $88 million. Theincremental cumulative net benefit from the project, therefore, is estimated at about $178 million. Theproject's payback period begins in project year 12.

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Annex 5Financial Summary

(US$ million)

Implementation Period Operational Period

Project Costs 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08

Investment Costs 3.2 5.9 7.9 8.2 7.3 0.0 0.0 0.0 0.0 0.0Recurrent Costs 0.3 0.5 0.9 1.4 1.7 1.7 1.7 1.7 1.7 1.7

Total 3.5 6.4 8.8 9.6 9.0 1.7 1.7 1.7 1.7 1.7

Financing Sources(% of total projectcosts)

IBRD/IDA 78 74 72 69 65 0 0 0 0 0Government 22 26 28 31 35 100 100 100 100 100

Total- 100 100 100 100 100 100 100 100 100 100

Fiscal Impact(US$ million)

1994 1995 1996 1997* 1998* 1999* 2000* 2001* 2002*

GDP* 30,071 35,691 35,511 37,201 40,994 43,653 46,935 50,464 54,261Annual govt. 9,640 11,401 10,577 10,112 11,518 12,595 14,014 15,366 16,808revenue*Revenues, in % of 32.0 31.9 29.7 27.1 28.1 28.8 29.8 30.4 30.9GDP _ _

Govt. counterpart 0.7 1.6 2.4 2.9 3.1contribution forprojectGovt. counterpart 0.01 0.01 0.02 0.02 0.02contribution, in % ofgovt. revenues

* As per IMF estimates; in millions of US dollars.

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Annex 6Procurement and Disbursement Arrangements

Procurement

Procurement methods (Table A)

Goods and Works to be procured in accordance with the Bank's Guidelines for Procurementunder IBRD loans and IDA Credits, January 1995, revised January and August 1996. Consultingservices, TA and training would be procured in accordance with the Guidelines - Selection andEmployment of Consultants by World Bank Borrowers, January 1997. The Bank's Standard BiddingDocuments for International Competitive Bidding (ICB) and the Regional bidding documents establishedfor National Competitive Bidding (NCB), as amended from time to time, will be used for procurement.

Civil Works

The civil works included under the project consist of renovations and expansion of existingoffices in 18 judets (and 83 locations) of estimated value US$1.8 million, scattered in terms of locationand time. Individual civil works contracts costing less than $100,000 will be procured throughcomparison of three quotations from local contractors, a procedure appropriate for procurement of minorcivil works. The overall schedule of civil works procurement steps is given in the Project ImplementationPlan.

Goods

The goods to be financed from the Bank loan proceeds include mapping and survey equipment,office equipment, computers, vehicles, and furniture. To the extent practical, these items would begrouped into efficient procurement packages for equipment, vehicles, and furniture. Equipmentpackages valued under US$0.25 million will be procured through IS. Some small equipment of totalvalue US$0.3 and not exceeding $100,000 per package which is locally available and not of interest toforeign manufacturers will be procured through NS. Another package valued at US$0.6 million wouldconsist of high precision mapping and survey equipment, manufactured by a handful of firms, and willbe procured through limited international bidding (LIB). Vehicles valued at US$0.6 million will beprocured through ICB. Furniture valued at $150,000 per contract, up to an aggregate of US$1 millionwill be procured through National Competitive Bidding.

Technical Services

Total value of technical services to be procured under the project will be about US$25.0 million.Technical services constitute approximately 66% of the project value. These include aerial photography,control densification, mapping, orthophotography, land registration and cadastre systems development,digital mapping systems, urban and rural surveys, and data entry contracts. Contracts for aerialphotography, mapping and orthophotography, land registration and cadastre systems, cadastre date base,and digital mapping valued at US$6.7 million will be procured through ICB following the Bank'sProcurement Guidelines. Urban and rural cadastral surveys and data entry services which are widelydispersed over the entire country and require local language skills will be procured through NCB forcontracts more than $150,000 up to an aggregate of US$15.1 million and through National Shopping for

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contracts less than $75,000 for a total value of up to US$3.2 million. For survey and data entry work thesize of the contracts in the early project years are likely to be small and they will gradually increase asthe capacity of the private sector builds up to handle bigger contracts.

Consultancy

Consultants for technical assistance under the project (US$2.1 million) and for training and studytours (US$0.6 million) will be selected through Quality and Cost Based Selection method (QCBS) inaccordance with the "Guidelines for Selection and Employment of Consultants by World BankBorrowers" (January 1997). Individual training consultants (total value US$0.1 million) will be recruitedusing the selection process for individual consultants. Total technical assistance and training under theproject is estimated at US$2.8 million. This includes about 72 staff months of long-term foreigntechnical assistance spread over three years.

Prior review thresholds (Table B)

All bidding packages procured through ICB and other packages for equipment and materialsestimated to cost US$250,000 or more and the first two packages to be procured through NCB for eachimplementing agency would be subject to prior Bank review. Technical services estimated to cost US$150,000 or more would be subject to prior Bank review. Consulting contracts in excess of $100,000 forfirms and $50,000 for individuals would be subject to prior review procedures. The Bank will alsoreview, regardless of value, terms of reference for all consultants. Selective post review of awardedcontracts below the threshold level would be carried out during field supervision.

Other Bank Assistance

To facilitate efficient project implementation, standard bidding documents for goods, smallworks, and the request for proposals (RFP) for consulting services will be provided to the projectexecuting agency. For procurement through national competitive bidding (NCB) the Borrower will usethe standardized Regional Bidding Documents.

Institutional Capacity Building in Procurement

Both the implementing institutions, ONCGC and the MoJ, have no institutional capacity atpresent to carry out the procurement for the project. As early as possible (preferably through the ILO-Turin course commencing in early 1998) four candidates, two from each of the executing agencies, willbe sent for an intensive procurement management training course held by ILO-Turin, Italy. Also, duringthe first year of project implementation a reputed international procurement consultant will be retained.A comprehensive procurement workshop for all staff concerned with project execution is planned as partof the project launch in March/April 1998.

Notifications

A "General Procurement Notice" containing information about bidding opportunities forprocurement on the basis of ICB was published in "Development Business" on October 31, 1997 inaccordance with paras 2.7 and 2.8 of IBRD Guidelines. Specific Procurement Notices will also bepublished, as appropriate, in Romanian newspapers with national circulation.

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Disbursement

Allocation of loan proceeds (Table C)

The allocation of loan proceeds is given in Table C, which also indicates the financing for thevarious categories of expenditures.

Special Account: The Borrower will open and maintain Special Accounts with an acceptablecommercial bank in Romania on terms and conditions acceptable to the Bank. There will be two SpecialAccounts for the project -- one for the cadastre component and the other for the land book andinstitutional strengthening component. The GCIG (in ONCGC) will manage the SA for the cadastrecomponent and the authorized allocation of it would be $700,000. At the start of the project, the initialdeposit will be limited to $350,000 and the remaining portion of the authorized allocated could berequested only after cumulative disbursements reach a level of $4 million. The LBIG (in MOJ) willmanage the SA for the land registration and institutional strengthening components. The authorizedallocation for this SA would be $300,000 with an initial deposit of $150,000. The authorized allocationcould be requested once the cumulative disbursements reach a level of US$2 million.

Withdrawal applications for the replenishment of the Special Accounts should be sent to theBank on a monthly basis, or when the balance of the Special Accounts is equal to about half of the initialdeposit or the authorized allocation, whichever comes first. These applications would have to besupported by appropriate supporting documentation including a copy of the monthly bank statement ofthe SAs which has been reconciled by the project agencies.

Use of statements of expenses (SOEs):

Disbursement for contracts for goods of or above $250,000 equivalent would be made againstfiull documentation, and for those less than this amount will be made against Statements of Expenditures(SOEs). Also, for consulting firms for contracts costing less than $100,000 and for individualconsultants for contracts less than $50,000, disbursements will be made on the basis of SOEs. Fortechnical services under contracts costing less than $150,000 equivalent each and for all works,disbursements will be made on the basis of SOEs. Full documentation in support of SOEs would beretained by the project agencies for at least two years after disbursement. This information would beavailable for review during supervision by Bank staff and for annual audits which will be required tospecifically comment on the propriety of SOE disbursements and the quality of the associated record-keeping.

Page 28

Annex 6Table A: Procurement Arrangements

(US$ million equivalent)

Project Elements Procurement Methods Total

ICB NCB Other Cost1. Works

1.1 Buildings 1.8a 1.8(0.9) (0.9)

2. Goods2.1 Equipment 0.7b&e/ 0.7

(0.5) (0.5)2.2 Mapping & Survey Equipment 0.6c/ 0.6

(0.4) (0.4)2.3 Furniture 1.0 1.0

(0.1) (0.1)2.4 Vehicles 0.5 0.5

(0.4) (0.4)3. Technical services

3.1 Cadastre Implementation Contracts 6.7 6.7(5.4) (5.4)

3.2 Rural & Urban Surveys 14.1 2.5e/ 16.6(11.6) (2.0) (13.6)

3.3 Data Entry Contracts 1.0 0.7_/ 1.7(0.8) (0.6) (1.4)

4. Consultancies4.1 Design & Supervision 2.4d/ 2.1

(2.1) (2.1)4.2 Training 0.7 0.7

(0.6) (0.6)5. Miscellaneous

5.1 Incremental Operating Costs 4.9 4.9(0.04) (0.04)

Total 7.2 16.1 14.0 37.3

(5.8) (12.5) (7.1) (25.5)

Note: Figures in parenthesis are respective amounts financed by the Bank.

a! Minor Civil Works through three-quotes shopping.b/ International shopping.c/ Limited International Bidding.d/ Consultant Guidelines-January 1997 (QCBS).e/ National Shopping.

Page 29

Annex 6Table B: Thresholds for Procurement Methods and Prior Review

(in US$)

, ~~~~~~~~~~~~~~~~~~. .. .......

Element ICB NCB IS NS Other Methods(Goods/WorkslTechnical Services

1. Procurement Works: n.a. Works: n.a. Works: n.a. Works: n.a. Works: Minormethod thresholds Goods: >250,000 Goods: Furniture Goods: 4250,000 Goods: 4100,000 works (quotations)

Tech. <150,000 Tech. Svss.: n.a. Tech. Svss. Goods: specializedSvss.>150,000 Tech. <75,000 eq. (LIB)

Svss< 150,000 Tech. Svss.: n.a.No objection onbudget forrecurrent costs

2. Prior Review All First two from n.a. n.a. Yeseach agency

Element QCBS QBS Sole sourcing Minor contracts Other methods(ConsultantServices)

3. Procurement 200,000 n.a. n.a. n.a. Individualmethod thresholds _

4. Prior Review Yes n.a. n.a. n.a. Yes (>50,000)5. Ex-post Explain briefly the ex-post review mechanism:Review The Bank will monitor procurement activities, contract management and project record keeping during

I periodic supervision missions. 20% of contracts will be ex-post reviewed.

6. Brief statement:Both the implementing institutions, ONCGC and MoJ, have no institutional capacity at present to carry out the procurement forthe project As early as possible (preferably through the ILO-Turin course comnmencing in early 1998), four candidates, twofrom each of the executing agencies, will be sent for an intensive procurement management training course held by ILO-Turin,Italy. Also, during the first year of project implementation, a reputed international procurement consultant will be retained. Acomprehensive procurement workshop for all staff concened with project execution is planned s part of the project launch inMarch/April 1998.

7. Country Procurement Assessment Report or Country Procurement Strategy Paper 8. Are the bidding documents for theStatus: Country procurement Strategy paper finalized in 1995. procurement actions of the first year

ready by negotiations? Yes

9. Estimated date of Project 10. Estimated 11. Indicate if 12. Domestic 13. DomesticLaunch workshop: March/April 1998 date of General contracts are Preference for preference for

Procurement subject to Goods/Works: ConsultantNotice publication mandatory SPN in Yes/no Services11/97 Development No

I Business: No. I _ _

14. Retroactive Financing: No 15. Advanced procurement: No

The borrower will develop monitoring and reporting system for timely implementation.

17. Indicate name of Procurement Staff as part of Project Team: Division: ExtS. Mitrovic, Procurement Analyst ECSRE 32182

18. Explain briefly the expected role of the field Office in Procurement:Field office will provide backup on procurement issues to Project Tean.

Page 30

Annex 6Table C: Allocation Of Loan Proceeds

Amount of the % of ExpendituresCategory Loan Allocated to be Financed

.__ _ _ _ _ _ _ _ _ _ _ _ _ (U S$)

(1) Works 50%(a) Under Part A of the Project 35,000(b) Under Part B of the Project 760,000

(2) Goods 100% of foreign expenditures, 100%(a) Under Part A of the Project 550,000 of local expenditures (ex-factory cost),(b) Under Part B of the Project 850,000 and 70% of local expenditures for(c) Under Part C (i) of the Project 40,000 other items procured locally

(3) Technical Services 80%(a) Under Part A of the Project 13,900,000(b) Under Part B of the project 3,600,000(c) Under Part C (ii) of the Project 90,000(d) Under Part C (iii) of the Project 90,000

(4) Consultants' Services & Training 100%(i) Consultants' Services

(a) Under Part C (ii) of the Project 1,050,000(b) Under Part C (iii) of the Project 1,050,000

(ii) Training(a) Under Part A of the Project 95,000(b) Under Part B of the Project 375,000

(5) Incremental Operating Costs 100%Under Part C (i) of the Project 40,000

(6) Unallocated(a) Under Part A of the Project 2,300,000(b) Under Part B of the Project 675,000

Total 25,500,000

Page 31

Annex 7Project Processing Budget and Schedule

A. Project Budget (US$'000) Planned Actual(At final PCD stage) (as of Sept. 1997)

$325,000

B. Project Schedule Planned Actual(At final PCD stage)

Time taken to prepare the project (months) 22*First Bank mission (identification) 1/10/1994 1/10/1994Appraisal mission departure 7/07/1997 7/07/1997Negotiations 10/27/1997 10/27/1997Planned Date of Effectiveness 5/25/1998 / /19

Prepared by: Inter-Ministerial Committee, ONCGC and MoJ

Preparation assistance: PHRD $348,000; Dutch Trust Funds $48,000; FAO $30,000

Bank staff who worked on the project included:

Name SpecialtyKundhavi Kadiresan EconomistHyko Laeyendecker Institutional specialistC.P. Ranganathan Procurement SpecialistDoina Rachita Project OfficerIrina Luca Project Officer

* Project preparation was on hold during 1995 and 1996 because of delay in passing the cadastreand land registration law in Parliament.

*Page 32

Annex 8Documents in the Project File *

A. Project Implementation Plan

A. 1 Implementation Details on Cadastre, Land Book Systemand Institutional Strengthening Components

A.2 Project Costs and FinancingA.3 Procurement ArrangementsA.4 Procurement PlanA.5 Disbursement PlanA.6 Project Implementation ScheduleA.7 Organizational Chart

B. Detailed Cost Tables

C. Bank Staff Assessments

C. 1 Computerization and Data Standards - Report (Andrew Coote,Virgil Geanta, Silviu Siteu: May 1994)

C.2 Legal Framework - Report (Jo Henssen and Lucian Mihai: April, 1994)C.3 Marketing Mapping and Land Information-Report (J. D. Leatherdale:

May 1994)C.4 Land Registration and the General Cadastre-Report (Lynn Holstein and

Octavian Balota: May 1994)C.5 National Cadastre-Report (Nicolae Taralunga: April 1994)C.6 Land Reform - Technical and Operational Aspects - Report

(J D Leatherdale: May, 1993)C.7 Working Paper No. 1: Land Market and Valuation (P W. Munroe-Faure:

April 1994)

* Including electronic files.

Generated: November 3, 1997

Annex 9Status of Bank Group Operations in Romania

IBRD Loans and IDA Credits in the Operations Portfolio

Difference Betweenexpected

Original Amount in US$ Millions and actualLoan or Fiscal disbursements a/

Project ID Credit Year Borrower PurposeNo. IBRD IDA Cancellations Undisbursed Orig Frm Rev'd

Number of Closed Loans/credits: 36

Active LoansRO-PE-44614 IBRD42130 1998 ROMANIA SCHOOLS REHABILITATI 70.00 0.00 0.00 70.00 0.00 0.00RO-PE-39250 IBRD41780 1997 GOVERNMENT OF ROMANIA SECOND ROADS 150.00 0.00 0.00 150.00 0.00 0.00RO-PE-8778 IBRD40790 1997 ROMANIA BUCHAREST WATER SUPP 25.00 0.00 0.00 23.89 23.89 0.00RO-PE-8793 IBRD40960 1997 ROMANIA HIGHER EDUCATION 50.00 0.00 0.00 50.00 50.00 0.00RO-PE-8795 IBRD41760 1997 GOVERNMENT OF ROMANIA ASAL 280.00 0.00 0.00 80.00 150.00 0.00RO-PE-8795 IBRD41761 1997 GOVERNMENT OF ROMANIA ASAL 70.00 0.00 0.00 66.97 350.00 0.00RO-PE-36013 IBRD39760 1996 SNCFR RAILWAY 120.00 0.00 0.00 119.19 119.19 0.00RO-PE-8773 IBRD39750 1996 ROMANIA FESAL 170.00 0.00 0.00 20.00 130.00 0.00RO-PE-8773 IBRD39751 1996 ROMANIA FESAL 90.00 0.00 0.00 47.36 250.00 0.00RO-PE-8773 IBRD39752 1996 ROMANIA FESAL 20.00 0.00 0.00 16.95 280.00 0.00 XRO-PE-8794 IBRD39360 1996 RENEL POWER SECTOR REHAB. 110.00 0.00 0.00 106.65 106.65 0.00 coRO-PE-8776 IBRD38490 1995 EMPLOY. & SOC. PROTE 55.40 0.00 0.00 54.73 54.73 0.00RO-PE-8774 IBRD37350 1994 GOVT. OF ROMANIA INDUSTRIAL DEVELOPMENT 175.00 0.00 0.00 137.27 137.27 137.29 XRO-PE-8777 IBRD37230 1994 Government of Romania PETROLEUM SECTOR REH 175.60 0.00 0.00 147.96 147.96 0.00RO-PE-8784 IBRD37240 1994 REPUBLIC OF ROMANIA EDUCATION 50.00 0.00 0.00 41.79 41.79 0.00RO-PE-8771 IBRD35930 1993 MOT TRANSPORT 120.00 0.00 0.00 2.06 2.06 0.00RO-PE-8759 IBRD34090 1992 MOF HEALTH SERVICES REHA 150.00 0.00 0.00 53.92 53.92 53.88RO-PE-8772 IBRD34860 1992 ROMANIA PRIVATE FARMER & ENT 100.00 0.00 0.00 1.27 1.27 0.00

Total 1,981.00 0.00 0 .00 1,190.01 1,898.73 191.17

Active Loans Closed Loans TotalTotal Disbursed (IBRD and IDA): 772.26 2:811.39 3,583.65

of which has been repaid: 6.25 2,200.22 2,206.47Total now held by IBRD and IDA: 1,974.75 612.00 2,586.75Amount sold : 0.00 19.78 19.78

Of which repaid : 0.00 19.78 19.78Total Undisbursed : 1,190.01 .83 1,190.84

a. Intended disbursements to date minus actual disbursements to date as projected at appraisal.b. Rating of 1-4: see OD 13.05. Annex D2. Preparation of Implementation Summary (Form 590). Following the FY94 Annual Review of Portfolio performance (ARPP), a

letter based system will be used (HS = highly Satisfactory, S = satisfactory, U - unsatisfactory, HU = highly unsatisfactory): see proposed Improvements inProject and Portfolio Performance Rating Methodology (SecM94-901), August 23, 1994.

Note:

Disbursement data is updated at the end of the first week of the month.

Generated by the Operations Information System (OIS)

Page 34

Annex 10

Romania at a glance 8/15197

Europe & Lower-POVERTY and SOCIAL Central middle.

Romnanla Asia income Development diamond'

Popubltion mid-1996 (miblions) 22.7 479 1.125 LifGNP peW-capita 1996 (USS$) 1,440 2,180 1,750 e expectancyGNP 1996 (biions US$1 32.6 1.043 1,967

Averag,annual growtk 19996

Populatbionip -0.4 0.3 1.4 GNP GrLlaboift f N 0.1 0.5 1.8 per Gross

1tit recent estimat (ltestyear avaiable since 1989) capita enrollment

Poverty. headcount index (% rofpopulatfon) 22 - -Mrban opulation (%oftfotal opltiobn) 55 65 56 I

Lif expectanc at binh 0es) 70 68 67Inantfmortalily per I1,000 Are bils)om 23 26 41 Access to safe waterClild malnrition ( ot chiNk under .)Acesi to ask wotar M of ppafon) .. 78Ilitarecyr ( ofopltn age I" RomaniaGros ptmary enol Imant (% of schoo-ge population) 94 97 104

illlahL 0 0 ; ; i j i A94 97 105 Lower-nidde-mncome groupFemale2 iS ;; ; 0 | :; f :; ;0: i :93 97 101

KEY ECONOImRAT1Os and LONG4ERM TRENDS

1976 1ow S 998 1996Economnic ratioa

GP~~~~b~~~n.(/SS) .. ~~~~~~~~~ 47.8 35.5 35.5Gross domestic_bPt::0000:0 9 invatmntlGO 0 40.40 ; 33.0 :25.6 ; 25.A 0 Openness of economyE 4tso1 goads and servlcesiliOP .. 22.9 27.4 26.9GroasdoraaaticaavtngalOP: ..0 0 i; i: r37.2 21.1 18.9Gr"s4t"nl seVGDP .. 35.9 214 18.8

Curretaccoun tltt :ba:0XQ:}; lance/GOP ; ; : 00.................. 00 ;:;|00002.9 4.9 -6.6interest pmtsGP . i.i 0.8 1.4 Savings Investment

towa debW/OP . .. 18.7 26.4ota igdebtsep :c lexports ;: 0 : f0; 4; 0 0. 0 Xo o: 0 018.7 :. 1 1 1.5 13.4

OrsewS Vliki df deBbtGDP0 Wo:00 I 7 ;Eag ;- Present value of debt/GOPt 67 . 8.rreaent value of debt/expOrts .. .. 0 0 :l; ; t; ; 67.7 Indebtedness

19746 1986-960 199S 1996 1997461 -(faverge annualgrowth y 0 y ;: ;: ;Q ;ti: 0 : A 0 X -Romania~~DP 4.8 4:4. 6.9 4.1 5~~~~~~~~~~~~~~~.01FNP pei-cepwit nd 4.; 0 4.i -3S; 00 6.1. 4.5: 05°1\ - Lower-middlincome group

Expoilsofboodsandservices .. 02 11. 0.8O 5.9 _______________

STRUCTURE of tho ECONOMY

( of GDP) 1976 *98S 1996 1996 Growvthmrts of output and investment I%)Agriculture , 20.4 19.8 Industry .. .. 39.3 38.2 3

Manufacturing , .. -.Services .. .. 40.3 42.0 o

9= 3 94 95 94Private consumption 58.9 66.6 70.2 qoGeneral govemment consumption 3.9 12.2 10.9Importsofgoodsandservices 18.7 31.9 33.4 - Di GDP

197S-85 1986-96 1995 1996(averae annual giowth) Growth rates of exports and imports (%)Agriculture 2.4 4.8 1.4 20Industry .. -&5 9.4 1.6

Manufacturing o \ . ..

Services .. -5.0 5.7 10.0 91 92 93 94 9r so

Private consumption 0.7 12.3 9.2 -20General government consumption 4.0 -2.4 -8.7Gross domestic investment -3.2 1.5 3.3 J.4

Imports of goods and services 2 7 14.1 7.0 EN ImportsGross national product 4.7 -3.5 5.9 4.0

Note: 199 data are preliminary estimates. Figures in italics are for years other than those specified.

The dimmonds show four key indicatom in the country (in bold) compared with its income-roup average. If data are missing, the diamond willbe Incomplete.

Poe 36

Romania

PRICES and GOVERNMENT FINANCE1376 1138" 1998 19906

Domcs kpdcz Inflation (%)(% change) 32 -Consumer prices 32.0 38.8 .8Implicit GDP deflator 0.4 35.7 45.6 208

Govamm ant finac e(% of GDP) iCurrent revenue . 48.9 32.0 29.8 S 91 92 93 94 95 goCurrentbudgetbalance 29.7 2.7 1.4 - GDPdaf. -OCPIOverall surplusldeficit 12.1 -2.6 -3.9

TRADE1076 1986 1996 1996

(rnilons US$) Export and Import levela (mill. USS)Total exports (fob) 10,174 7,882 8,238 15,00

Textiles 2,065 1,985Metals 1,513 1,310Chemicals , 1,001 1,145 1r

Total imports (cd) .. 8,402 9,487 10.3688Food. 180 818 892 5,ucFuel end energy .. 4,753 1.160 1,265Capital goods .. 3,489 7,509 8,211 0

Exportpnieindex(1993=100) , 106 108 so 91 92 93 94 95 96Importprfceindex(19933=100) 105 104 cExots IMImporTerms of trade (1993=100) 102 104 m

BALANCE of PAYMENTS1976 1986 1998 1996

(milons USS) Current account balance to GDP ratIo (%)Exports of goods and services 5,812 10,920 9,333 9,554Imports of goods andsen/ices 5,858 8,926 11,172 11,868 90 s 1 92 93 94 95 196Resource balance -46 1,994 -1,839 -2,314 |

_2

Net income -89 -613 -262 -401Net current transfers 0 0 369 379

Current account balance,before official capital transfers -135 1,381 -1,732 -2,336 -a

Financing items (net) 103 -1,698 1,541 3,216Changes in net rterves 32 317 191 -880 8

Memo: _

Reserves induding gold (mill. US$) 904 1,447 1,579 2,103Conversion rmte (JocaWlUS$) 2,033.4 3,085.4

EXTERNAL DEBT and RESOURCE FLOWS1975 1986 1996 1996

(millions US$) Composton of total debt, 1996 (mill. USS)Total debt outstanding and disbursed 211 7,008 6,653 9,374

IBRD 19 1,833 844 1,009 AIDA 0 0 0 0 G 1009

2092 cTotal debt service 1 2,064 967 1,349 673

IBRD 0 274 53 63IDA - 0 0 0 0

Composition of net resource flows DOfFcial grants 0 0 30 0 1507Official creditors 30 -61 698 737Private creditors 0 -845 267 | F

Foreign direct investment 0 0 419 410 2448 EPortfolio equity 0 0 1 . 1645

Word Bank programCommitments 160 0 340 475 A -IBRD E - BilateralDisbursements 19 49 129 227 B -IDA D-Othermultlateral F-PrivatePrincipal repayments 0 146 0 0 C -IMF G -Short-termNetflows 19 -97 129 227 -_1

Interest payments 0 127 53 63Net transfers 19 -225 76 164

Development Economics. 1996 extemal debt and resource flows data are staff estimates (preliminary). 8115/97

ROMANIA

UKRAINE GENERAL CADASTRE ANDLAND REGISTRATION PROJECT

-t' S., 0 ANI�Mare,- SPORADIC AND SYSTEMATIC

. . MARAMURES Botosani 0HUNGARY SATU Baia Mare � REGISTRATION

MARE N., SPORADIC REGISTRATION ONLY

BISTRITA- 0 SELECTED CITIES

I A S I � COUNTY (JUDET) CENTERSNASAUD

Oradea Dej 0 013istrita..-- Iasi� NATIONAL CAPITALCOUNTY (JUDET) BOUNDARIES

BIHOR - - - INTERNATIONAL BOUNDARIESCLUJ r

Cluj-Napoca� Husi0

M U R E S Vaslui �Bacau

Tu,d. 0 0If Tirgu Mures� I'HARGHITA 8 A C A U VASLUI

KILOMETERS

iercurea Ciuc(i) 25 50 75 100

oG lO �O 310 �O �O

4p IV AL MILES

e Alba iuli-A6% 46--

Deva N

T I M I S heTimisoura 0 Lugoi Hmedodora UKRAIN

(HUNEDOARA:

4% Petrosari 0

�Resitci1%/ Rimnicu Tulcea

CARAS- Vilcea �Tirgu Jiu � ARGES T tJ L C EA

4: SEVERtN VILCEAGORJ

.'mI-.-HED1NT1drsova

Pro3beeta-Tumu'erin

v

177 >1FED. REP. OF "N Slatino

YUGOSLAVIA Craiova�

(SERBIA/MONTENEG-RO) 0 L TDOLJ0 Carao.1 44-

z f/'6Izalafat 4_0 8 L A C K

nga

Th. b-doie�, d-i-tim ord .,y o&, ml-tw S E Ash.- on fM .. p d. -t i.ply, o t6 p.H of Th, world 8.4G-P, oy j�dgrr-f - Me kgo/'Ioft'� ,r-y fo"if�Y' .' oy-6-em., o-pf.- f woh bour�dmi-

24- BU W 28-