1. Economic and Financial Analysis of Geospatial Information: The Albania Case Study March 21, 2017 Annual World Bank Land & Poverty Conference
Aanchal anand, Land administration specialist
ANDREW COOTE, CONSULTANT
Kathrine kelm, senior land administration specialist

2. Background Broader Strategic Dialogue at the World Bank Albania
Geospatial information – key enabler for the global development agenda (SDGs)
Developing a corporate strategy, SDI diagnostic, and business lines to respond to client needs
Albania
New 5-year CPF of USD 1 billion investment with heavy focus on infrastructure
Integrated Land Management Project (ILMP) under preparation
Albania has recently set up a national spatial data agency – ASIG
Project component investing in the development of NSDI – need for a business case
First World Bank client country where such a business case is being developed

3. Valuing Geospatial Information
Everyone agrees NSDI is important but how important is it?
Where should the first investments go?
Value for money / socio-economic return
Marginal benefit vs. marginal cost
Existing economic studies
No standard framework or methodology
High income countries only
Developing countries’ analysis restricted to ex-post anecdotal evidence

4. Approach
Scope and Priorities: economic snapshot, Government priorities
Land administration and management issues
Literature Review
In-person interviews (close to 100 people across 25 organizations)
Big data (Instagram hashtags)
Benefits transfer (GNI scaling)

5. Direct Quantifiable Benefits: Summary Slide
Benefit
Info Gathering
Methodology
Amount (EUR M) 1
National data sharing
Interviews
Multiplier
42.9 (project period) 2
Reduced court case cost
Cost/case
1.3 (annual) 3
Improved Flood Prediction
PDNA
% of cost
(per 5 year event) 4
Property Tax Collection
Numbers from Municipality
(annual) 5
Cost savings in infrastructure development
Interviews/studies
Cost of design surveys/cost of investment projects
(annual) 6
Land Market Potential
Studies
Gap analysis
4.8% of GDP 7
Tourism Potential
Instagram/Big Data
Scaling
8.9 (annual) 8
Improved road navigation
Benefits Transfer
3.66 (annual) 9
Improved Govt Efficiency
Savings/employee; time savings
(project period)

6. Other Benefits Social cohesion EU accession Affordable housing
Better spatial planning – greater coordination, evidence-based
Microfinance in Agriculture
Climate change adaptation

7. Value of Data Sharing (EUR 43M over project period)
Multiplier: 1x for essential + 0.2x for useful but non-essential
Savings: one time cost plus ongoing maintenance cost

8. Big Data: Instagram Hashtags to Determine Tourism Potential (EUR 8
Big Data: Instagram Hashtags to Determine Tourism Potential (EUR 8.9M annually)
Big data and predictive analytics

9. Improved Navigation (EUR 3.66 million annually)
Reduced congestion and journey times using road centerline data
Benefits transfer using Oxera and BCG study, ‘The Value of Geo Services’ (2013)

10. Preliminary Results: 2.5x:1 Return on Investment

11. Conclusions
Preliminary estimates suggest a 2.5x:1 return on investment
Assumes a 12-year period (5 year implementation period and 7 years of use)
12% discount rate (conservative)
There are other things we can as we finalize this analysis
ROI can be further refined with more time and resources
Stakeholder input is key – create a customized framework for the analysis
Mixed method approaches that combine qualitative interviews with quantitative methodologies (big data analytics and benefits transfer) work best

12. Next Steps Refine and verify numbers
Computable General Equilibrium Analysis to look at impacts on GDP
Standardize methodology to easily and quickly deploy this analysis in other countries
Benefits realization through monitoring and evaluation

13. Next Steps: Computable General Equilibrium (1/2)
Reaction to economic shocks
Provide a holistic view of the economy
Comparative-static vs. dynamic models
“Bulky” models that are challenging to build and operate for a solution

14. Next Steps: Computable General Equilibrium (2/2)

15. Land Conference 2018