1. Real Estate Registration Project Dr. Shahin M. Panahov PMU Manager UNECE Working Party on Land Administration (WPLA) International Workshop on “Efficient and Transparent Land Management in ECE Countries” Baku, Azerbaijan, 4 - 5 March 2010 Azerbaijan Azerbaijan

2. Presentation contents: 1. Map of Azerbaijan 2. Land Structure In the Republic of Azerbaijan 3. WB/IFC Report Doing Business 2008 - 2009 4. Main RE Management Challenges 5. Project objectives 6. Timeframe/area 7. WB Country Partnership Strategy for the Republic of Azerbaijan for 2007-2010 8. Implementing Agencies 9. Project Institutional and implementation arrangements 10. PMU 11. Project components (A, B, C and D) 12. IAs and components 13. Report on RER Grant Project 14. A. Real Estate Registration 15. B. State Property Management and Register 16. C. Base Mapping and Land Cadastre 17. D. Training, Policy Development and Project Management 18. Project Implementation Challenges 19. Other Donors 20. Next Steps

3. TOTAL AREA OF AZERBAIJAN REPUBLIC 8,7mln - 86 600 KM 2OCCUPIED AREA by Armenia - 20%

5. Land Structure In the Republic of Azerbaijan 57 % of land belong to the state 23 % of land belong to municipalities 20 % privatized

6. WB/IFC Report Doing Business 2008-2009 comparing regulations in ~180 countries Azerbaijan: 2008 2009 Overall rating 96 33 Registering property (rank) 63 9 Procedures (number) 7 4 Time (days) 61 11 Cost (% of property value) 0, 2 0,3

7. Main RE Management Challenges the lack of legal security for real estate inefficient transaction processes poor management in the development of urban areas discrepancies between real location and land parcel maps poorly functioning real estate market no valuation methodology institutional, etc

8. Real Estate Registration (RER) Project Cost: 30 mln USD (loan) 8,5 mln USD (Azerbaijan contribution) Timeframe: RER PHRD Grant Project: 22 February 2007 - 22 September 2007 RER Loan Project: 23 September 2007 – 28 February 2013 Area: The whole area of Azerbaijan (except but occupied by Armenia)

9. Project objectives reliable, transparent & efficient RE registration system, supporting the real property markets & suitable systems for the State property management; a single automated system, all information about the location of i/property and the rights relating to that property; all information about RE is readily available to the public; the base mapping will provide a complete record of all property, whether officially recorded or not

10. WB - The Country Partnership Strategy (CPS) for the Republic of Azerbaijan for 2007-2010 outlines four higher level CPS objectives for Azerbaijan: 1. public sector management and prevention of corruption; 2. sustainable growth of the non-oil economy; 3. improved quality and access to social services; and 4. improved environmental management

11. World Bank Team Mr. Gavin Adlington – Task Manager Mr. Gurcharan Singh Mr. Rufiz Chiragzade Ms. Alexandra Montealegre Mr. Norpulad Daniyarov WB Web Link: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230& theSitePK=40941&menuPK=228424&Projectid=P100582

12. Project components A. Real Estate Registration (SCPI) B. State Property Management and Register (SCPI) C. Base Mapping and Land Cadastre (SLCC) D. Training, Policy Development and Project Management (PMU)

13. Implementing Agencies and Project Components Components Implementing Agencies Component A. Real Estate Registration ( 43% of project costs ) Component B. State Property Management and Register (12% of project costs ) Component C. Base Mapping and Land Cadastre (35% of project costs ) Component D. Training, Policy Development and Project Management (10% ) (10% of project costs ) SCPI (former SSRRE) 88% X X X SCPI (former SCMSP) 57% X XX SLCC 45% X X

14. Project Institutional and implementation arrangements Project Steering Committee (established 24 August 2007, updated 27 august 2009 ) Comprises: 2 IAs and Ministries of Justice, Finance, Taxes and Economic Development (total 7 government officials). Minister of Finance Mr. Samir Sharifov is a PSC chairperson. Met 6 times to discuss urgent Project issues A Project Director, appointed by Government (Mr. Damet Bagirov, Head of the SSRRE under SCPI, 27 August 2009) Project Management Unit (PMU) located within the SSRRE under SCPI The two implementing agencies’ (IAs) Component Coordinators Project Work Groups (İCT, RE C&R, RE Market Study, Orthophotomapping &CORS, & Training, public awareness, etc)

15. Project Management Unit - PMU 1. PMU Manager 2. Training Manager 3. Procurement Specialist 4. Procurement Assistant 5. Finance Specialist 6. Office Manager 7. Translator 8. Monitoring and Evaluation Specialist 9. IT assistant 10. Training Manager’s Assistant

16. THE STATE COMMITTEE ON PROPERTY ISSUES OF THE REPUBLIC OF AZERBAIJAN THE STRUCTURE AND THE SUBORDINATED BODIES OF THE SCPI Established on 19 May and approved by the Decree dated 24 June 2009 of the President of the Azerbaijan Republic Structural bodies of the SCPI 1. Apparatus of the State Committee on Property Issues of the Republic of Azerbaijan; 2. State Service for Registration of Real Estate under the State Committee on Property Issues of the Republic of Azerbaijan ; 3. Auction Center for Organization of Auctions under the State Committee on Property Issues of the Republic of Azerbaijan; 4. Territorial Units of the State Committee on Property Issues of the Republic of Azerbaijan.

17. THE STATE COMMITTEE ON PROPERTY ISSUES OF THE REPUBLIC OF AZERBAIJAN Subordinated Bodies of the SCPI 1. Real Estate Cadastre and Technical Inventory-Making Center; 2. Information Technologies and Information Management Center; 3. Territorial Units of the State Service for Registration of Real Estate under the State Committee on Property Issues of the Azerbaijan Republic; 4. Production and Service Enterprises Management Center.

18. State Land and Cartography Committee (SLCC) SLCC (established in 1992/April 2001) is responsible for (i) land design works, (ii) geodesy and cartography field works, (iii) maintaining the land cadastre and issuing land ownership certificates (this function is transferred to SRRE under SCPI), (iv) aerial photography, (v) production and printing of maps. The SLCC has 4 departments: 1. State Land Design Institution, 2. State Land Cadastre and Monitoring Scientific Center, 3. State Aero Geodetic Enterprise, and 4. Baku Cartographic Factory. The overall budget of the Committee for 2006 was around $ 10 mln

19. Report on RER Grant Project PMU established, functional Research conducted and Reports submitted: RE Registration and Cadastre (Kadastre Intl, Netherlands); ICT/IM for Unified RE Cad. & Reg. System (DHV, Netherlands); RE Market and Customer Analysis (BaltKonsults, Latvia); Orthophotomapping (preparations)

20. RER Loan Project Components Component A: Real Estate Registration Subcomponents: A.1 Construction of new buildings, renovating existing buildings; A.2 Development of the Unified RE Cadastre & Registration System – URECRS; A.3 On-line services to Notaries; A.4 Creation of the digital RE Cadastre Maps (for 40 000 sq km); A.5 Document Management, Entry & Archiving Paper Records into new Systems; A.6 Regularization of developments, Illegal constructions; A.7 Property Valuation/Taxation; A.8 Maintenance of the Real Estate Cadastre and Private Sector development; A.9 Public Awareness; A.10 Business Plan development.

21. Component B: State Property Management and Register The objective of this component is to support improvements in the management of state property. This will be achieved by Subcomponents: B.1 improving the administrative systems and service delivery; B.2 improving the automated SPMS; B.3 technical support to SCMSP.

22. Component C: Base Mapping and Land Cadastre The objective is to provide the basic geodetic, mapping and cadastral data for the automated property registration and SPMS Subcomponents: C.1 Establishing 37 Continuously Operating Reference Stations CORS; C.2 Production of orthophotomaps through satellite and aerial imagery; C. 3 Development of land parcel maps; C. 4 Improving the sustainability of the services.

23. Component D: Training, Policy Development and Project Management The objective is to support project implementation and monitoring: D.1 Training; A Training Center established within the SSRRE; D.2 Developing a joint ICT/ information management strategy; D.3 Policy and legislative development, Establishment of Law Center; D.4 Project Management Unit (PMU); D.5 Monitoring and Evaluation (M&E).

24. Project’s Main Implementation Challenges OFM CORS-AZPOS URECRS How to Address Illegal Constructions New Cadastre Law Procurement (Intl and Natl tenders on works, goods & consultants)

25. Orthophotomapping: Financed by Govt, national procurement procedures WB reviews tech specifications & quality control 2007, Mr. Lyn Holstein’s and Ms. Karin Haldrup’s missions to Baku MOU signed by SSRRE, SLCC, SCMSP & PMU (2007) Turkish companies submitted quotas for flight & mapping INDIS and Inta Space (Turkey) companies selected & contracts implemented successfully SECO experts selected 22 man/months (2008-2013)

26. Other Donors SECO (Swiss Confederation) (22 man/months) KfW (Germany) (Sheki and Ganja) USAID and ACDI/VOCA OSCE Korean Embassy in Baku Norwegian Mapping Agency

27. For more on RER Project Contact: WB Real Estate Registration Project Azerbaijan, AZ1073, Baku 31, Huseyn Javid Avenue Phone: (+994 12) 510 91 45 Fax: (+994 12) 510 91 47 E-mail: s.panahov@dedrx.gov.azs.panahov@dedrx.gov.az

28. Thank you! Q&A?