Rome, ItalyNovember 18, 2010

Rumyana TonchovskaSenior Land Administration Officer – IT, FAO

Gavin AdlingtonECA Land Programme Leader, World Bank

ECA EXPERIENCE INECA EXPERIENCE IN DDEVELOPPIG CADASTRE EVELOPPIG CADASTRE

AND REGISTRATION IT SYSTEMSAND REGISTRATION IT SYSTEMS

Lessons Learned & Lessons Learned &

Good PracticesGood Practices

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Land Administration and Management is recognised as the leading example of collaboration between the FAO and the World Bank through the CP

FAO/WB Cooperative FAO/WB Cooperative ProgrammeProgramme (CP)(CP)

ECA Region ECA Region /7/2009 /7/2009 --30/4/201030/4/2010

It accounts for about 30% of the work delivered by FAO for the World Bank’s European and Central Asia (ECA) region

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The WBs ECA region. Red=CISThe WBs ECA region. Red=CIS

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40 projects24 stand alone Land Administration projects16 with large Land administration components

23 countriesUS$ 1.1 billion in loans and grants19 projects currently ongoing

The largest program of land reform the world has ever seen!

Countries in ECA with WB funded Land Countries in ECA with WB funded Land Administration and Cadastre projectsAdministration and Cadastre projects

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The Changes in ECA Region The Changes in ECA Region

Have Been Have Been RADICALRADICAL

In 2000 Hernando de Soto linked the situation in transition countries to those of the less developed

world and stated:

“….. today they look astonishingly similar: strong

underground economies, glaring inequality,

pervasive mafias, political instability, capital flight

and flagrant disregard for law ….. most people can

not participate in an expanded market because they

do not have access to a legal property rights system

that represents their assets in a manner that makes

them widely transferable and fungible.”

The Mystery of Capital.

Doing Business 2010Doing Business 2010

2. Georgia

4. Lithuania

5. Armenia

9. Azerbaijan

10. Belarus

11. Slovakia

13. Estonia

17. Moldova

19. Kyrgyzstan

9 of the top 20 performers in registering property Worldwide are9 of the top 20 performers in registering property Worldwide areECA countries:ECA countries:

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And climbing a mountain is done “one step at a time”

Changes in the ECA Region Were Changes in the ECA Region Were

Done in Several Stages...Done in Several Stages...

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�� PrePre--19891989

� State ownership very common

� Private ownership in some Central European

countries, but transfers of ownership

discouraged.

� Mortgages generally unavailable.

�� 1989 1989 –– 20002000

� Various programs to privatize land and property,

and establish registration systems.

�� 20002000--20102010

� Building on the reforms.

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Land Management Projects in ECA Land Management Projects in ECA

Stage 1 and Stage 2Stage 1 and Stage 2

Stage 1• Focused on Land Privatization• Business, housing and enterprise privatisation• Restitution of property rights• Institutional development and Legal base

Stage 2• Registration of property rights and encouraging land and property markets to operate

• Cadastre and Systematic registration• Improving services through changes in work flows, procedures, IT systems, introducing

service standards

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Countries in ECA with Computerised Land Countries in ECA with Computerised Land Administration and Cadastre SystemsAdministration and Cadastre Systems

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Land Management Projects in ECA Land Management Projects in ECA

Stage 3Stage 3

The countries in the ECA region are requesting World Bank support in two key areas:

� Improving the quality of services and reducing

corruption through e-government initiatives.

The E-Cadastre;

� Spatial Data Infrastructure and meeting the

requirements of the INSPIRE Directive.

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The World Bank support for the next five to ten years in ECA region will be focused on the following five broad objectives:

Objective 1: Completion of property registers and cadastres to provide safe and secure property rights, and facilitate privatization and land reform;

Objective 2: Development of a more integrated approach to land management through land policies that reflect environmental and sustainable development concerns;

Objective 3: Encouraging innovation and the use of SDI or spatial information underpinning new products and services;

Objective 4: Improving the management of the organization and use of space data;

Objective 5: Supporting governance and quality and method of services provided

The World Bank Land New Agenda The World Bank Land New Agenda

in ECA in ECA -- Stage 3Stage 3

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FAO Current Work on Land TenureFAO Current Work on Land Tenure

The current FAO work on Land Tenure includes:

� Investigations of the land tenure implications of climate

change scenarios and policy options in relation to the rapid

growth of land use for bioenergy production;

� land tenure in emergency and post-emergency work;

� compulsory purchase of land and compensation;

� state land management;

� low-cost land tenure security;

� good governance in land administration;

� making land information accessible for the poor.

IT IT Worldwide Worldwide Statistics!Statistics!

WORLD IT Systems StatisticsWORLD IT Systems Statistics

More than 3 in 5 IT projects do not do what they were supposed to do for the expected costs and within the expected timeline.

At best, 7 out of 10 IT projects “fail” in some respect.

More gloomy stats include the following:

� 49 % suffer budget overruns

� 47 % result in higher than expected maintenance costs

� 41 % percent fail to deliver the expected business value

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$6.2 trillion/year Worldwide cost of IT failure$6.2 trillion/year Worldwide cost of IT failure

Region GDP $ Billion Cost of Failure $ Billion

� World 69,800.00 6,180.48

� USA 13,840.00 1,225.47

� New Zealand 44.00 3.90

� UK 2,260.00 200.11

� Texas 1,250.00 110.68

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The cost of a failed project is only the tip of the iceberg.Every project failure incurs both direct costs (the cost of the IT investment

itself) and indirect costs (the lost opportunity costs).

The Diagnose: Predicted Annual Cost of IT Failure

FAILURE & SUCCESS FACTORSFAILURE & SUCCESS FACTORS

RPM-5017

Factor Percent1 Incomplete requirements 13.12 No user involvement 12.43 Lack of resources 10.64 Unrealistic expectations 9.95 No support from senior management 9.36 Unstable requirements 8.77 Poor planning 8.18 System non-usable at finish 7.59 No IT management 6.210 No technical competence 4.3

FAILURE FACTORSFAILURE FACTORS

The level of competency required is higher than The level of competency required is higher than that employed within projects for 70% of the casesthat employed within projects for 70% of the cases

According to new research, success in 68% of technology projects is “improbable.” Poor requirements analysis causes many of these failures, meaning projects are doomed right from the start.

““Ambiguous requirements Ambiguous requirements

create failed projectscreate failed projects””

RPM-5020

SUCCESS FACTORSSUCCESS FACTORS

Factor Percent

1 User involvement 15.9

2 Support from senior management 13.9

3 Clearly defined requirements 13.0

4 Good planning 9.65 Realistic expectations 8.26 Phased approach 7.77 Competent personnel 7.28 User ownership 5.39 One vision and clear goals 2.910 Effective and goal oriented personnel 2.4

EARLY WARNING SIGNSEARLY WARNING SIGNS

Twelve early warning signs of Twelve early warning signs of IT project failureIT project failure

Managers often express

SURPRISE

upon learning their

project will run

LATE or OVER-BUDGET

People-Related Risks

1. Lack of top management support

2. Weak project manager

3. No stakeholder involvement and/or participation

4. Weak commitment of project team

5. Team members lack requisite knowledge and/or

skills

6. Subject matter experts are overscheduled

Process-related Risks

7. No business case for the project

8. Lack of documented requirements and success

criteria

9. No change control process (change management)

10.Ineffective schedule planning and/or management

11.Communication breakdown among stakeholders

12.Insufficient Resources assigned

Building Houses & Building Houses & Building IT SystemsBuilding IT Systems

Step 1: Preparation

Conceptual Design; Detailed

Architectural Design and Bill of

Quantities; Selection of Project

Manager

Step 2: Tendering & Contracting

� CONSTRUCTION

� SUPERVISION

Step 3: Building Construction

Step 4: Supervision

Step 5: Inspection

Step 6: Final Acceptance

Step 7: Maintenance

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Building a HouseBuilding a House

Building an IT SystemsBuilding an IT Systems

Step 1: Preparation:

� User and System Requirements.

Business Processes Re-engineering;

� System Architecture;

� Selection of development approach;

Step 2: Tendering & Contracting

Step 3: Development &

implementation

� Inception Phase

� Construction Phase

� Elaboration Phase

� Transition Phase

Step 4: Quality Assurance

Step 5: Phases Acceptance

Step 6: Final Acceptance

Step 7: Maintenance25

ECA EXPERIENCEECA EXPERIENCEKey ChallengesKey Challenges

Good Practices & Lessons LearnedGood Practices & Lessons Learned

Key Challenges- Cadastre and Registration

IT Systems� Complex institutional arrangements;

� Lots of stakeholders involved;

� Complex procurement procedures;

� Unclear vision. Often the SW development starts prior to the Business Strategy;

� Institutional reorganization going in parallel with the SW implementation;

� Legal changes at the time of system development and implementation;

� Underestimation of the complexity of the system;

� Different old systems in use, not well documented, based on different technical platforms, using different data structures and different data definitions. Issues with intellectual property rights;

� Data quality. Non harmonized data between the cadastre and registration services;

� Common standards and data definitions;

� Institutional capacity to manage big IT systems and perform quality control. QA/QC are not foreseen at the project design.

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Good PracticesGood Practices

ICT Strategy

ICT Strategy Developed with clear:

1. Organizational part (WHO? is responsible)

Suggested management and quality assurance mechanism; Defined the

necessary institutional capacity to manage the development and the

implementation of complex IT System.

2. Methodological and Management part (HOW? the IT project will be

managed)

3. Technical part (WHAT? and WHEN? will be implemented).

Defining Short-term, mid-term and long-term priorities.

Albania, Bulgaria, Croatia, Kosovo, Kyrgyzstan, Macedonia, Serbia,

Under development in Montenegro, Bosnia and Herzegovina

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Good PracticesGood PracticesManagement and Quality Assurance MechanismManagement and Quality Assurance Mechanism

Examples:Examples:

Albania, Bulgaria, Croatia, KyrgyzstanAlbania, Bulgaria, Croatia, Kyrgyzstan

Good PracticesGood Practices

User Requirements Preparation

Examples:Examples:

Croatia:

Business processes working group was established, trained and competent to

develop use-cases AS-IS, to work on the re-design of the business

processes – TO-BE, participated in the development of User

requirements, worked with the contractor at the design phase,

participated in the testing and acceptance.

The head of the working group was member of the Project Management Body.

Kyrgyzstan:

External User Working Group was established to work on the external User

Requirements and testing the external users functionalities: two banks,

property valuators, real estate agents, notaries, municipalities, state

architecture and taxation office.

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IT System Development& Implementation

Key Issues:

� Unclear and not detailed User and System Requirements/unrealistic

expectations;

� Underestimation of complexity from both sides – purchaser and supplier;

� Lack of experience in managing big IT systems from both the purchaser

and supplier sides.

� Contract management is underestimated;

� Weak quality assurance and quality control from the purchaser side;

� Data quality and Data Migration. The old systems in use are not

documented and are using different data structures, resulting in additional

delay;

� Staff unavailability to support the system implementation.

� Underestimation of training needs. Underestimation the need of

procedural and legal training, prior to the IT system users training.

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Good PracticesGood PracticesIT System Development& ImplementationIT System Development& Implementation

Good Practices Examples:

� Croatia: Clear User Requirements, Intensive Users involvement, Strong

Quality Assurance (QA) and Quality Control (QC)

� Serbia: Strong Project Management, QA and QC, clear requirements

� Macedonia, Moldova, Montenegro, Kyrgyzstan: Step-by-Step - small

contracts for SW development and implementation;

� Bulgaria: Well organized system roll-out and training. The nation-wide

roll-out was organized within 6 months period only;

� Turkey and Russia: Good examples of system implementation in big

countries.

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Good PracticesGood Practices

IT System RollIT System Roll--Out and TrainingOut and Training

Bulgaria: Training and roll-out within 6 months:

� Phase 1: One week - Basic IT training, Legal and Procedural

training, IT system basic functionalities training

� Phase 2: Self training – at the working environment – 10-30 % of

the incoming cases were entered into the testing environment

several months before the system roll-out

� Phase 3: One week - Legal and Procedural training, IT system

advance training

� Phase 4: On-the-job training – 1-3 days after the system

implementation in the office.

Help Desk: Available at the time of system roll-out. Interactive Help – both

Procedural and IT Users Manual available with cross references;

Roll-Out: Data migration – Friday night after the end of the working time.

Testing – during the weekend. Monday – the office is working with the

new system only. The old system was used for information only.

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System Operation and Maintenance

Key Issues:� Lack of capacity within the administration to maintain complex

systems and databases. Uncompetitive salaries in the public sector in comparison with the private sector – difficult to keep employ qualified IT staff with Governmental salaries;

� Lack of capacity to keep the data updated and support the data harmonization process after the project completion;

� Limited private sector involvement;

� Continuing to keep both paper and digital data, which requires double efforts and long processing time.

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Good PracticesGood Practices

System Operation and Maintenance

Examples:

Croatia

Public-Private Partnership. The Government of Croatia decided to outsource the system operation and Maintenance to the hosting company withexperience in managing big nation-wide IT systems, such as customs and taxation;

The hosting company was involved at the time of design of HW technical specifications, testing and acceptance of the HW and licenses and system integration process.

Bulgaria

Two separate long-term contracts have been signed with the private companies for the maintenance of the system in the two data centers (Disaster Recovery

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THANK YOU!THANK YOU!