strategic plan reca 2009-2013

Real Estate Cadastre Agency of the Republic of Macedonia

STRATEGIC PLAN OF THE REAL ESTATE CADASTRE AGENCY

2009-2013

Skopje, August 2008

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

1. Introduction

„ Strategic Planning is a disciplinary activity that leads to the fundamental decisions and activities that shape and lead the organization to what it is, what it does and how it is done 1“.

This is one of several definitions for the essence and the concept of strategic planning of an organization (especially from the public sector), however it was placed at the beginning of this introduction due to the essential message it entails. Namely, strategic planning as a continuous and iterative process is individually the most important activity of an organization from the perspective of executive management. This process starts with (a) the formulation of a strategic framework, i.e. the definition of the basic mandate and vision of the organization, as well as its strategic objectives for a certain time frame, and (b) the Strategy elaboration process in a realistically feasible Plan, i.e. identification and design of key programs related to the mandate of the organization that in a certain foreseeable dead line will lead to its desired transformation. It is understood that all of this process is undergoing within a frame of limitations of the resources available of any kind: financial, human and temporal. All of this makes the Strategic Planning process a serious professional challenge intertwined with a process of adopting decisions on a strategic, tactical and operational level.

Analogue to this, the Strategic Plan of the Real Estate Cadastre Agency (RECA) is prepared by the management (managing staff) lead by the Director, the expert advisors of the Agency2, as well as the expert of the Real Estate Cadastre Agency, hired by the Sida Project. The process is supported and structured by the consulting company PointPro Consulting, while the funding is made by the Project for Strengthening the Institutional Capacity of SAGW, through the Swedish International Development Agency (Sida) of the Kingdom of Sweden. The Strategic Plan refers to the period from 2008 till 2013.

As a starting basis of the revision of the Strategic Plan, on one hand is the analysis of the current status of the Agency, and on the other hand the new mandate of the Real Estate Cadastre Agency that comes from the new Law on Real Estate Cadastre and the Strategic Priorities of the Government of the Republic of Macedonia for 2009.

Thus, in the preparation process of the strategic plan of the Agency for the period 2009-2013, there was significant utilization of the already prepared strategies, and still partially revised according to the newly occurred external and internal situations and the status of the ongoing development project.

The process implemented for the formulation and elaboration of the new Strategy of the Agency has started with the analysis of the current status and position of the Real Estate Cadastre Agency, the so called SWOT analysis, based on the defined strengths and weaknesses, as well as the opportunities and the threats for the Agency from the external context for operations. The key part of the

1 (Olsen and Eadie, 1982), Strategic Planning for Public and Non-profit organizations

2 The authors of the Strategic Plan, i.e. the list of participants at the workshop for Strategic Planning and interviewed staff from the Agency are annexed to this Strategic Plan.

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diagnostic of the current situation was also the precise determination of the status of the ongoing development projects and current trends visible in the recent period of work of the organization.

The formulation of the strategy of the Agency begins with the revision of its legal mandate and the determination of the desired future situation, i.e. the Vision of the Real Estate Cadastre Agency as an effective, fast, modern, secure and reliable organization for providing services to its users and as an organization that is a leader for all geodetic and cadastral operations and a guardian of the legal security of the geospatial data and the real estate rights data in the Republic of Macedonia.

More precise determination of this far-reaching and widely defined vision in the strategic plan has been done with the determining of the more specific strategic objectives of the organization:

Strategic objective 1: Providing and efficient, reliable and secure system for the Guaranteed Ownership Right over Real Estate in Macedonia.

Strategic objective 2: Providing pre-conditions for an efficient real estate market in the Republic of Macedonia.

Strategic objective 3: Enabling pre-conditions for the creation of and adequate and high quality Land Policy in the Republic of Macedonia.

Strategic objective 4: Efficient serving of the needs and demands from all categories of users of public services of the Agency.

Through thus formulated strategic objectives, the Strategy of the Agency a more realistic, more feasible and above all a more measurable character. The expected mid-term results and the effect from the strategy have a clear direction and provide a solid basis for high quality and adequate identification and design of specific development programs that the Agency should organize and implement in the period 2009-2013.

As an output of this comprehensive planning process, the document comprises:

The design (objectives, structure, budget and an implementation plan) for each specific development program of the Agency for this period

An integrated Implementation Plan and the necessary development budget on the level of the Agency

Detailed financial plan and projections of the income and outcome, that provides the detailed budget and time frame of the foreseen measures and funding resources.

The Strategic plan also foresees an implementation plan of each strategic objective individually, with a time frame and a budget for the realization of each objective. Most of the measures and activities of the project will be implemented by teams comprised of persons employed by the Real Estate Cadastre Agency (RECA), in the scope of their competences and expertise.

Such a defined strategic plan of RECA logically includes the redefining and upgrading of the organization itself, i.e. revision and design of new and improved organizational systems, processes and activities in accordance with the desired strategy. On a strategic level, what is essential is the design and the implementation of the following organizational systems: (а) Formal structure and hierarchy, (b) Management control system, (c) Management information system, and (d) Human Resource Management system.

2. Background and purpose of the Strategic Plan

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What was the State Authority for Geodetic Works (SAGW) in the 60 years of its existence and work was an institution responsible for the performing of the operations from the land cadastre, survey, mapping, geodesy and the registration of real estate rights on the level of the Republic of Macedonia. The work and the setup of the State Authority for Geodetic Works in the past years is the object of a large number of legal amendments and reform activities. With the legal amendments in 2005, all of the operational field geodetic works are no longer performed by SAGW, but the public authorizations have been transferred onto authorized surveyors and trade companies for geodetic operations. With the latest legal amendments and the adoption of the Law on Real Estate Cadastre (March 2008), the State Authority for Geodetic Works had the obligation of transforming into a Real Estate Cadastre Agency. Real estate rights, as well as the development of modern land administration systems are recognized as fundamental factors for the development of the real estate market, and as a basis for the economical development 3 in the country. A client oriented institution, efficient and prepared to meet the demands of the clients from the private and the public sector, as well as for the citizens it is generally necessary for the sustainable development of the Republic of Macedonia. The last legal amendments impose new demands and authorizations of the State Authority for Geodetic Works, thus changing the character of the institution in order to achieve an efficient and flexible organization fro the demands of the clients. The modern land administration systems contain a wide range of data and information that should meet the demands for correct, timely, complete and usable information for the registered data, ownership rights and the values of the real estate, based on geospatial data. Setting up a modern geodetic cadastral information system based on the new IC technologies is necessary for meeting these demands, which is foreseen with the new Law on Real Estate Cadastre. The fast development of technology, as well as the standardizations of the data and the reference systems enables the construction of such a system, which would additionally meet the growing needs and demands of the clients, allowing for e-transactions, as well as supporting the determination of the Republic or Macedonia for the introduction of an e-Government and an e-society. The demands of the clients, the needs for developing modern land administration systems and real estate cadastre are the factors that impose the re-structuring and modernization of SAGW. With the latest legal amendments and the adoption of the Law on Real Estate Cadastre (March 2008), the State Authority for Geodetic Works should necessarily transform into a Real Estate Cadastre Agency. This law gives new authorizations of the Agency, making the reform process obligatory for the period to come.

3 According to the research of the client satisfaction of the services of SAGW from January 2008, 90.9% of the questioned have stated that the Cadastre as an institution is important for the economic development of the country.

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In order to adequately meet the legal obligations and the above listed demands for reforming, the management and expert team of the Real Estate Cadastre Agency have developed A Strategic Plan of the Real Estate Cadastre Agency for the period from 2009 to 2013, which is the subject of this document.

3. Strategic Planning MethodologyThe Strategic Planning process should necessarily provide answers for the current status, the future desired state and the ways to achieve the future desired state.

The Strategic plan contains a summary for the current situation of the Real Estate Cadastre Agency as a basis for the adoption of the strategic decisions for defining the desired situation, i.e. defining the Vision, the Mission and the Strategic Objectives of the Real Estate Cadastre Agency. The process of formulating the strategy defines the ways and steps for achieving the desired situation, i.e. it contains the priority programs, components and activities that are necessary for the fulfillment of the Strategic Objectives of RECA for a period of five years. The implementation programs are defined with components and activities, with a given time frame and budget restraints for their funding.

Having in mind the specificity of the Real Estate Cadastre Agency as a public institution, special attention is paid to the harmonization of the Strategic Planning with the National Development Strategy of the Republic of Macedonia, as well as with the annual budget process. The Strategic Plan of RECA outlines the desired situation and the map to get there, however within the frame of the limitations of the Agency’s budget.

The process of formulating a harmonized Strategic plan with the National strategies and priorities and budget policy is shown integrally and in detail in the next diagram.

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Diagram: Harmonizing Strategic Planning with the National Development Strategy and the Budget cycle

The Strategic Plan must contain adequate tools for management control so it would enable the monitoring of the realization of the Strategic Plan, i.e. the programs and activities within the foreseen limits. The Strategic Planning process and management control in stages has been shown in detail in the following diagram.

SPSPMi si ja i Mi si ja i Nadl e nostiNadl e nosti

NP AANP AA

Strate{ ki Strate{ ki P r i or i teti P r i or i teti

na VRMna VRM

Konkretni programi i Konkretni programi i potprogrami (GP RV)potprogrami (GP RV)

P l an za SproveduvaweP l an za Sproveduvawe

Srednoro~na Srednoro~na F i skal na F i skal na

RamkaRamka

F ormul i rawe F ormul i rawe Strategi jaStrategi ja

Razrabotka na Razrabotka na Strategi jaStrategi ja

SPSPMi si ja i Mi si ja i Nadl e nostiNadl e nosti

NP AANP AA

Strate{ ki Strate{ ki P r i or i teti P r i or i teti

na VRMna VRM

Konkretni programi i Konkretni programi i potprogrami (GP RV)potprogrami (GP RV)

P l an za SproveduvaweP l an za Sproveduvawe

Srednoro~na Srednoro~na F i skal na F i skal na

RamkaRamka

F ormul i rawe F ormul i rawe Strategi jaStrategi ja

Razrabotka na Razrabotka na Strategi jaStrategi ja

Ongoing Government Policy Ongoing Government Policy (budget turnover)(budget turnover)

Annual budget cycleAnnual budget cycle

Midterm Planning Cycle Midterm Planning Cycle

BudgetBudget

AWPGM

6

Mission, Vision and

Values

Situation Analysis

Plan preparat

ion

Monitoring and

evaluation

Stage 1

Stage 2

Stage 3 Stage 4

Stage 5 Stage 6 Stage 7

Annual Operational

PlanReports from monitoring

and evaluation

NPAA

OSP


Diagram: Strategic planning process and management control.

The formulation of the Strategic Plan provides the desired situation, programs and activities for achieving that situation, implemented by RECA. Regular monitoring and evaluation of the implementation of the plan on the level of activities it contains is obligatory for taking correction measures so that the implementation will reflect the plan. At the same time it is recommendable for the monitoring and evaluation to be done annually for the possible revision of the Strategic Plan, as well as additional detailing of the activities with assigning carriers of the activity, budget and duration.

3.1.Strategic topics and Strategic Planning The harmonization of the Strategic Plan of RECA with the National Development Strategy, Government priorities and strategic objectives, are necessary because the state is a founder of the public institutions.

The public institutions are created from the state for providing services of public interest. The mandate and the mission indicate the public value that the relevant public institution should create, while at the same time provide social justification and legitimacy on which the existence of public administration is based.

The mandate of state bodies, i.e. public institutions is defined by the Government of the Republic of Macedonia, concerning what a state institution does, based on formal requests and authorizations such as laws, regulations, government decisions, decrees etc. and it is influenced also by non-formal demands, such as the constituency, selected representatives and other stake holders.

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PreparationDetermining objectives and policies

Plan implementa

tion

Strategic plan


The Mission should provide a clear explanation of an organization, while the Vision provides an explanation as to how an organization should look and act in order to achieve its Mission.

The Mission Statement is a declaration of the organizational purpose. It should provide an answer to all of these questions:

Who are we and why do we exist?

What are the basic social, economical and political needs (functions) we are here to meet, and problems we should address?

How do we recognize, predict and meet those needs and problems?

How should we reply to the key stake holders?

What is our philosophy, values and work habits in the organization?

What makes us different and unique?

After defining the mandate, the mission and the vision of the institution comes the identification of the strategic decisions and formulating the strategies. The process from the definition of the objective of the public institution to the formulation of the Strategic Plan is shown in the following diagram.

Diagram: The process from the Mission to the Strategy

The identification of the strategic topics is essential in the strategic planning process. The strategic topics entail the fundamental questions related to the policies or the critical challenges for the organization, i.e.

Mandate & Mission

Programs & Public services

Users and customers

Costs and budgeting

Identification of strategic decisions:

Strategic level Operational level

Approaches

Formulating strategies:

Objectives Priorities (policies) Programs

Strategic plan

Defining the objective of the state

administration body: Mandate Mission Vision

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Organizational design (structure, systems and processes)

The structure of the strategic plan is shown in the diagram below, and it contains.

Priorities, i.e. the mandate, the mission and the vision

Strategic objectives of the organization

Programs and program indicators that assist the achievement of the strategic objectives

Results, i.e. components of each program and

Common functions, like finance, procurement, ICT, human resources.

Diagram: Structure of the strategic plan

In the defining of the structure of the Strategic Plan of the Real Estate Cadastre Agency, it is significant to mention that the programs are not directly linked with only one strategic objective, but one program can influence the fulfillment of several strategic objectives.

The structure of the strategic plan displayed in this way enables a conceptual and horizontal identification of all of the components, however there is the chronological dimension missing, which is additionally defined and necessary in the implementation of the strategic plan. The implementation plan of the strategic plan provides an adequate view of the time dimension, which additionally helps in the defining and monitoring of the needed resources for the implementation of the programs. The Strategic plan of the Real Estate Cadastre Agency contains plans for the implementation of each defined program. An example of an implementation plan is displayed below.

Mandate, Mission and VisionPriorities

Strategic objectives

Programs and program objectives (indicators)

Results (components)

Crossed (common) functions

Objective 1 Objective 3Objective 2

P1 P4P3P2 P5 P7P6 P8

Financial Human resourcesProcurement ICT

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ID Task Name Duration Cost

1 Plan za Sproveduvawe na Strategijata na Agencija zaKatastar na Nedvi`nosti - Primer

66 mons 755 mil MKD

2 Programa za GKIS 48 mons 365 mil MKD3 Baza na podatoci (alfanumeri~ka) 12 mons 30 mil MKD

4 Digitalizacija na arhivski i rabotni originali 48 mons 300 mil MKD

5 Vospostavuvawe na IKT 32 mons 30 mil MKD

6 Obuki 26 mons 5 mil MKD

7 Po~etok na Elektronsko odrùvawe na GKIS 0 mons 0 mil MKD

8 Programa za Osnovni Geodetski Raboti iKartografija

66 mons 390 mil MKD

9 Vospostavuvawe na novi referentni sistemi 48 mons 110 mil MKD10 GNSS (GPS) 18 mons 40 mil MKD

11 Nivelmanska mreà 48 mons 20 mil MKD

12 Gravimetriska mreà 36 mons 20 mil MKD

13 Odrùvawe na klasi~nite referentni sistemi 60 mons 10 mil MKD

14 Programa za Kartografija 60 mons 60 mil MKD15 Topografski karti 1:25000 24 mons 10 mil MKD

16 Topografski karti vo pisitni razmeri (1:50000;1:100000; 1:300000)

36 mons 20 mil MKD

17 Programa za Katastar na Nedvi`nosti (SB) 18 mons 150 mil MKD18 Sistematski izlagawa 18 mons 40 mil MKD

19 Premer na KO 18 mons 100 mil MKD

20 Sistematsko zapi{uvawe na pravata 18 mons 5 mil MKD

21 Konverzija na KZ vo KN 18 mons 5 mil MKD

22 Vospostavuvawe na KN na celata teritorija 0 mons 0 mil MKD

23 Programa za Organizaciski Razvoj 18 mons 30 mil MKD24 Definirawe na nov organizaciski dizajn 3 mons 5 mil MKD

25 Vospostavuvawe na novi menaxment sistemi 18 mons 5 mil MKD

26 Izrabotka i nabavka na sovtverski aplikacii 12 mons 15 mil MKD

27 Programa za obuki 6 mons 5 mil MKD

28 Kompletirawe na organizaciskiot razvoj 0 mons 0 mil MKD

29 Programa za NIPP (NSDI) 66 mons 30 mil MKD30 Dizajn na programata (Fizibiliti Studija) 12 mons 7 mil MKD

31 Obuki 12 mons 3 mil MKD

32 Dizajn na potrebni bazi na podatoci iidentifikacija na site zasegnati strani

12 mons 10 mil MKD

33 Nabavka na IKT i softverski re{enija 12 mons 10 mil MKD

34 Kompletirawe na Startna Faza naimplementacija na NIPP

0 mons 0 mil MKD

3/14

11/25

11/25

7/31

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22007 2008 2009 2010 2011 2012 2013

Gantogram: Example of an implementation plan

In the planning and the implementation of the strategy it is especially important to establish a connection, i.e. a bridge between the strategic plan and the budget. RECA as a budget user monitors the annual planning process of the state budget, which is structured and a recurrent process between the Ministry of finance and the budget users. Additionally, with the new Law on Real Estate Cadastre, the RECA is a budget user; however it makes significant income from self-funding that it uses as operational outcome and development programs.

In the strategic planning process, during the defining of the development projects, the RECA budget is defined according to:

A projection of funds from the Budget of RM, according to the Fiscal Strategy of RM and the budget plans in the budget turnover for 2009, 2010 and 2011.

The projection of the annual income from self-funding, for which there is a model of projection of the income from self-funding activities, based on the trends for the size of the services from the past years, the fees policy and the expected size of future individual services that the Agency will be providing in the upcoming 5 years.

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4. The analysis and the diagnosis of the existing situation of RECAIn order to formulate the Strategic Plan of the Real Estate Cadastre Agency it is necessary to have an adequate analysis and a diagnosis of the existing situation.

The analysis and the diagnosis comprises the following elements

Development documents and strategies prepared so far

Current organizational set up

Current trends and projects

Defining of the current situation through the SWOT analysis

The priorities of the Government of RM for 2009

The functions and the jurisdiction of the cadastre defined by the state

4.1.Current development strategies and documentsThe State Authority for Geodetic Works (in further text Real Estate Cadastre Agency) started with the strategic planning for 2007, with the preparation of a three year strategy for SAGW and three underlying strategies:

Strategic business plan for SAGW 2007-2010,

ICT strategy

Market and Financing Strategy (MF),

Human Resources Strategy (HR).

The Strategic Business plan of SAGW defines several significant strategies/programs for the period from 2007 to 2010:

1. Covering the entire territory of RM with a real estate cadastre, active GPS and gravimetric network, with cartographic products and developing a geo-spatial database.

2. Increase of the market orientation and increase of the cost recovery.

3. Proactive relationship with the stakeholders in the process of creating a land policy and the development of the real estate market.

4. Providing competence in the cadastre, cartography and geodetic works

5. Using modern information technology and digital products in order to satisfy the needs of the clients and for improving the internal efficiency and work conditions – at the same time focusing on preserving the security, safety and reliability of its data.

A significant number of activities are taken with the proactive attitude of SAGW in the past year, which results with the Law on Real Estate Cadastre. The new law redefines the institutional set up of the organization, it provides additional responsibilities and services to the Real Estate Cadastre Agency, such as the coordinative role of the National Spatial Data Infrastructure (NSDI).

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The new law defines in detail the Geodetic Cadastral Information System (GCIS), the registration of the real estate rights, the necessary metadata that the Real Estate Cadastre Agency has available, at the same time defining the basic geodetic works and cartographic.

In the preparation of the Strategic Plan for RECA for the period 2009-2013, used as a basis were the above named Strategic Plans, which due to the significant changes and influences in the past year have been significantly revised.

4.2. Organizational set upThe organizational set up should reflect the demands of all stakeholders, the Government of RM, the clients and to allow for efficient, secure and precise information of RECA and the services it provides.

The organizational set up of the Real Estate Cadastre Agency so far has been defined according to the Act on the organizational structure and the Systemization of the work positions. The Systemization of the organization has changed three times in the past year, which results in frequent changes in the structure of the organization.

So far, a primary role in the defining of the organizational set up was played by the basic structures like the organizational structure and the systemization of the work positions. What is visible is the need for promoting the systems and the processes in the organization, that include adequate human resource management, strategic planning and control, establishment of an appropriate management information system and information and communication. The basic systems of the organization are displayed in the following table.

The system for strategic planning and control in RECA is being built. With the preparation of the Strategic Plan in 2007 there was a step forward that was made, which was followed with the forming of the Sector for Planning and Development. The sector is being formed; however its functions and authorizations should be additionally defined.

The control of what has been done and a comparison with the plan has been made difficult and insufficiently fast, despite the efforts of the above named sector, above all due to the current establishment of the formal processes of informing and reporting, that still have not been precisely defined.

The management information system, as a system for integrated and timely financial and material accounting, that enables automated reports on the services, the clients and the realization, is limited to the budget management according to the budget accounting of state bodies alone. Additionally, the management information system is consisted of several different non integrated applications and sub-systems, which do not allow for the possibility of getting a timely and precise image of the income, services and clients, which is necessary for good decision making.

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Strategic planning and control

Management information system(financial/material

accounting)

Human resources Information and communication (formal

and informal)

Table: Basic organizational systems


The human resource system is significantly influenced by the donor activities so far, especially of the Capacity Building Project of SAGW, funded by Sida. With the new changes, significant changes in the human resource management will come after the enforcement of the Real Estate Cadastre Agency. This change is above all a result of the change of the status of civil servants of the employees. The adequate sub-systems for evaluation of the performance of the staff, rewarding the staff are not set up in the organization. The training and the development of the employees are comprised in the established training center of RECA, however systematic procedures for the determination of the demands for training and development of the employees still have not been placed in function.

Informing and communication of the organization are visibly one of the most critical elements in the organizational set up. Although there is a significant number of procedures that entail communication, there is a visible need for simplifying and further defining of the formal reporting procedures, reports and informing the employees, both vertically in the organizational hierarchy, and horizontally amongst the staff. Apart from the complexity of the work of RECA, the information and the communication procedures should take into consideration the aspect of knowledge management.

The organizational structure is functionally defined, consisted of 10 Sectors. The Sectors, the departments and the number of the employees per sector are displayed in the following organogram

Diagram: Organogram of the Real Estate Cadastre Agency, May 2008

4.3.Current trendsApart from the support of the Government of the Republic of Macedonia, the awareness of the citizens of the real estate cadastre of RM is significant, especially having in mind the importance of the registration of ownership rights of the citizens to certain real estate.

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In the Real Estate Cadastre Agency in the past period there are several significant trends that are relevant to the planning in future.

The amount of the demands for services from RECA is significantly increased in the past years. Additionally, with the movements of the real estate market, from a dominant number of individual clients, the number of applications of the private sector is increasing, as is the number of applications from the professional persons and organizations (notaries, insurance companies, banks, etc.)

SAGW, now RECA, has implemented significant development projects in the past years, for the reforms of the institution and for improving public services.

With the increased demands of the services and the development projects, the income from self-funding of RECA is increasing, even despite the reduction of the fees in September, 2007. The demands for the reform of the institution consequently influence the significant increase of the outcome of RECA.

4.3.1. Amount of services and categories of users An important and visible trend is the one of increasing the size of services.

Most of the services that are requested are related to proving the right of real estate ownership. The Real Estate Cadastre Agency guarantees the right to ownership of a certain real estate, i.e. the registered rights in the real estate cadastre determines the ownership of a real estate.

Table: Amount of SAGW services for the period 2005-2007, source Strategic Business Plan of SAGW

The number of applications had exceptionally increased during last year. As an indicator, the total number of applications has increased by 100% in April 2008 compared to October 2007. The increase of the number of new applications is shown in the chart below, for the period of the reduction of the fees of RECA.

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Број на нови предмети за период Октомври 2007 - Мај 2008

0

10000

20000

30000

40000

50000

60000

70000

1 2 3 4 5 6 7 8

Сектор А

Сектор Б

Сектор СкопјеВкупно

Chart: Number of new applications in the period October 2007 – May 2008

The increase of the applications is due to the speeding up of the denationalization process, the increased intensity for registering real estate rights, the movement of the real estate market. Still, the numbers per sectors are not equally distributed, although initially the number of resolved cases is almost equal to the number of newly arrived applications into the organization. A display of the difference of new and resolved cases per sectors is displayed in the chart below.

Chart: New and solved cases per sector for the first semester of 2008

It is visible that the total number of applications varies according to the type of service. Most of the clients are applying for the issuing of a property certificate, which is the initial factor for the other services related to the Real Estate Cadastre. According to the data from the database of RECA, the participation of the various services in the total number of applications is as follows: half of the

Applications per sector, period January-June 2008

-

20,000

40,000

60,000

80,000

100,000

120,000

Skopje Sector Sector А Sector Б Total

New January 2008

Solved January 2008

New February 2008

Solved February 2008

New March 2008

Solved March 2008

New April 2008

Solved April 2008

New May 2008

Solved May 2008

New June 2008

Solved June 2008

1

25%

25%

11%

2%

6%

2%3%

1%

0%

8%

0%

0% 5%

6%

2% 4%

I zdavawe posedovni / i motni (i evi dent ni ) l i stovi

P romena na podatoci vo katastarski operat

Uvereni ja za i zvr{ eni promeni (i st or i jat )

Uvereni ja-pot vrdi za podat oci t e vo k.operat

Hi pot eki - pr i java

Hi pot eki - br i { ewe i real i zaci ja

Sudski zabrani i ograni ~uvawa

Terensko i zveduvawe i premeruvawe

P redh. post apka za geodet ski merewa i i dent i fi kaci ja

Kopi ja od katastarski pl an / eta` ni ski ci

Kopi e so koordi nat i na kat astarski parcel i

I dent i fi kaci ja na st ara so nova K P

I zdavawe na podatoci , zaverka na el aborat i (za pr i vatnifi rmi )Zapi { uvawe vo odr` uvawe (dopol ni tel no i zl agawe)

P oedi ne~no zapi { uvawe

Numer i ~ki podat oci (ne se navedeni vo novi ot arhi vski pl an)


total number of applications is for issuing property certificates, 25% of those are for issuing property/possession certificates, and 25% from the applications are the changes of the data in the cadastral database. The participation of the services in the total number of applications summarized in Sector A, Sector B and the Skopje Sector are displayed in the following chart.

Chart: Participation of the services from the database of RECA in the total number of services

The Real Estate Cadastre Agency has various clients and users of services. The clients are grouped

into six groups:

1. Real Estate owners2. Private surveying companies and authorized surveyors3. Professional Agencies (Notaries, Attorneys, Insurance companies, Financial institutions,

Public Utility companies and public services, Real Estate Agencies)4. Local Self-Government5. Government institutions (Government institutions, especially the Ministry of Agriculture, the

State Statistics Agency, the Public Revenue Office with the Ministry of Finance)6. Central Registry

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4.3.2. Income and outcome

As a budget user, the State Authority for Geodetic Works has made its primary income from the Government of RM, and from self-funding activities, through the fees for its services for the end users.

In the past period, the Government of RM took a loan for the reforms of the real estate cadastre from the World Bank, thus enabling additional income for the introduction of the real estate cadastre in RM.

With the decision of the Government of RM, in September 2007 all of the fees for the services of SAGW were reduced by 50%, which significantly reduced the income of the institution. Although due to the increase of the number of the services, the self-funding income is growing. The income and outcome of SAGW for 2006 and 2007 are shown in the next table.

DR@AVEN ZAVOD ZA GEODETSKI RABOTI 2006 2007Pri hodi Porast

Pr i hodi od samofi nansi ra~ki akt i vnosti 119,600,371 185,236,446 155%Pr i hodi od mi nati godi ni 4,651,280 31,672,670 681%Pr i hodi od buxet na RM 266,232,000 269,357,000 101%Pr i hodi od zaemi 14,557,728 143,423,570 985%

Vkupni pri hodi 405,041,379 629,689,686 155%

RashodiPl ati , naemni ni i nadomestoci 227,189,000 214,895,056Patni i dnevni rashodi 8,071,542 7,126,262 88%Komunal ni usl ugi , greewe, komuni kaci ja i transport 28,506,473 28,343,583 99%Si ten i nventar , al at i drugi mater i jal i za popravki 4,014,858 8,910,609 222%Popravki i tekovno odr` uvawe 4,951,017 5,316,718 107%Dogovorni usl ugi 18,283,613 22,372,809 122%Drugi tekovni rashodi 10,545,865 20,069,878 190%Razni transf er i 0 821,066Grade` ni objekt i 0 1,710,679Kupuvawe na mebel , oprema, vozi l a i ma{i ni 890,957 15,591,573 1750%Drugi nefi nansi ski sredstva 11,796,119 2,925,320 25%

Rashodi od redovno rabotewe 314,249,442 328,083,551 104%

Ref orma na katastar i regi straci ja na nedvi ` nosti 53,600,728 197,885,514 369%

Vkupni rashodi 367,850,170 525,969,065 143%

Vi {ok na pri hodi pred odano~uvawe 37,191,209 103,720,621 279%

Danok na vi {ok na pr i hodi 5,518,539 12,351,851 Preneseno vo narednata godi na 31,672,670 91,368,770

Table: Income and outcome of the State Authority for Geodetic Works for 2006 and 2007

A significant indicator in the comparison of the two years is the fact that there is a significant growth of the budget of the organization that is above all due to the project activities from the World Bank Loan.

The total income from self-funding is seeing a significant growth in the past period, which is mostly due to the increased number of services and applications from the clients. Because of the difference

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in fees from the past years and this year, as an indicator for the income for self funding will be the first semester of 2008, shown in the chart below.

4.3.3. Ongoing development projectsIn the past years, a large number of the development projects have been implemented and are being implemented by the organization, in order to promote the work and the inclusion in the modern land administration processes and systems.

4.3.3.1. Geodetic Cadastral Information System - GCISThe geodetic cadastral information system (GCIS) refers to what has so far been called the e-cadastre that the organization has been attempting to establish during the past decade. There have been significant activities undertaken for the establishment of the real estate cadastre, the setting up of adequate bases in the Skopje Sector (ongoing project till the end of 2008), training of the staff for using information technology, as well as scanning cadastral maps and their partial digitalization, data processing into digital form, etc.

For viewing a part of the aspects in other ongoing projects, while viewing the status of GCIS we will pay attention to the alphanumerical database, the graphical database and the ICT systems that are necessary to be set up so it would all function.

The diagram below displays the summary of the current status of the establishment of GCIS.

Total self-funding income of the Real Estate Cadastre Agency for the first semester of 2008

-

5,000,000. MKD

10,000,000 MKD

15,000,000 MKD

20,000,000 MKD

25,000,000 MKD

30,000,000 MKD

35,000,000 MKD

40,000,000 MKD

Јан. Феб. Март Април Мај Јуни

Total income per month

Head office

Sector B

Sector A

Skopje

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4.3.3.2. Real Estate CadastreThe establishment of the real estate cadastre is a Project supported by the World Bank Loan. The status of the establishment of the real estate cadastre is the following

The real estate cadastre is established on 72 % of the cadastral municipalities.

There are registered rights in areas where the real estate cadastre is established, in Cadastral Municipalities (CM) where there is real estate cadastre registered the rights are not entirely precise, or there is an additional procedure, i.e. service, in the cadastre.

The real estate cadastre is expected to be established on the entire territory of the Republic of Macedonia by the end of 2009.

Alphanumerical databasesAlphanumerical databases (the cadastral database)

- 70 % completedSetting up in the head officeFirst use in Skopje

ICT infrastructureICT infrastructureThe hardware for the servers and the storage – procurement ongoingPreparation of the software IGEA – ongoing, will be finalized in 2008, first implemented in the Skopje Sector The cadastral data storage system is designed with a capacity for the entire alphanumerical database and the digital graphical databaseDemands:Necessary upgrade of the system in Sectors A and BThere is a need to standardize the procedures as a precondition for the introduction of operational modules, as well as secondary bases in HQ, i.e. Human Resources, finance, storage/material work, electronic work log book, planning and analysis and management reports.Connecting the alphanumerical database with the graphics

Digital graphical databaseDigital graphical database (digitalization of the cadastral

maps)

Geodetic Cadastral Information System -GCIS

Digitalization of the archive plans (originals) 30 %Geo-referenced maps are prepared for 75-80 % of RM

Outdated digitized archive mapsNon-defined updating and maintenance procedure

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The Republic of Macedonia is covered with cadastral maps that have been prepared from 1928 to 2004 in scales from 1:500 to 1:5000. These maps are prepared with classical and photogrammetric methods. For 190 cadastral municipalities (parts with constructions) there are color orthophoto maps – digital orthophoto from 2006.

The real estate cadastre database dates back from the 1980-s and is the form of text files. The base is not centralized, there are independent bases in every branch office, and the base is made up of only alphanumerical real estate data. At the moment, the maintenance of the alphanumerical databases is done on local servers in the branch offices from which a protection status copy is made every three months. Apart from the activities included in the project funded by the WB loan, SAGW has so far undertaken important ICT activities for the centralization of the databases and redefining of the work flow according to the needs of the institution and the clients. At the moment there is a comparison of projects for the centralization of databases, central utilization of the applications for maintenance of the alphanumerical database/registration system in the Skopje Sector that should be transferred to the branch offices, in which activities most of the hardware and the basic applications are already planned and are in the procurement process.

1.1.1.1. Basic geodetic operations and cartography In the analysis of the basic geodetic operations and cartography, we include

Basic geodetic operations that comprise the definition of the basic geodetic datum, cartographic projection and reference networks, which help create the basic geodetic reference system, on which basis the spatial data is determined;

The state reference system and Cartography.

For the purpose of strategic planning it is most important to view the gap in the above listed parts, i.e. the status of the classic geodetic networks, as well as the modern networks like the active GNSS reference network, the Astro-geodetic network and the geoid, the status of digitalization of the cartography according to the accepted standards and the needs of the clients. Status of the level and the gravimetric network: there is no precise data of the status of the level and the gravimetric network, while the level of maintenance and functionality is not satisfactory. At the moment a procedure is started for the preparation of a study for the analysis and the design of the desired system. The study is supported by the Real Estate Cadastre reform project funded by the World Bank. Active GNSS reference network: At the moment the coverage of the Republic of Macedonia with a GNSS network is 45 % of the territory of RM. For

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the coverage of the entire territory of RM it is necessary to have fourteen (14) active GNSS stations and around 400 passive GNSS points. At the moment five (5) active GNSS stations are set up, and it is necessary to have about 300 passive points set up to have full coverage. The activities for the full coverage of the astro-geodetic network and the geoid are left for the future, for a long-term period of 5 years of planning and realization. Cartography: The topographic maps in a scale of 1: 25,000 are converted into digital format for 70% of the territory of the Republic of Macedonia. The preparation of maps in a smaller scale: 1:50 000; 1:100 000; 1:300 000 will follow, and for this it is necessary to have additional knowledge, that the staff of RECA does not have at the moment. The preparation of special purpose maps, as a new service the Real Estate Cadastre Agency will be providing is expected for the longer period consisted in this Strategic Plan.

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4.4.Defining the current situation (SWOT analysis)Strengths Weaknesses

Unique institution for the cadastre and geo-spatial data

The RECA staff are not introduced enough with the new strategic decisions

Integrated real estate registration system and registration of real estate rights

Low number of current high quality geodetic engineering staff because of the significant outflow in the past two-three years.

Owning a very old archive Inappropriate organizational design for meeting the increased number of demands from the clients (for e.g. procurement, marketing, land transactions)

Ongoing REC project, electronic cadastre and capacity building

Lack of adequate systems for human resources, leading to poorly trained staff and poor motivation of the employees

Increased number of young employees and highly educated staff

Lack of horizontal communication among the management staff and vertical from the management to the employees

Centralized RECA resource management

Lack of adequate quality control of the work done by the private geodetic practice and the staff

Strong political will for reforming the cadastre, from the management and the Government of RM.

Lack of work procedures, the existing procedures are too complex

Introduction of new sectors and departments for overcoming the identified weaknesses

Lack of or insufficient staff performance control and monitoring mechanisms

Poor link between the local branch offices and the head officeLack of management practices and efficient control mechanisms, reporting and analysis of the work done (e.g. financial-material, plan and analysis, management reports).No connection between the alphanumeric and graphical data in GCIS.The digitization of the maps is not

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complete, and its implementation is not precise.Corruption

Opportunities ThreatsNew Law on Real Estate Cadastre Agency (RECA)

Organizational design that will not meet the demands of the clients

New institutional framework: new status of the employees and the possibility for upgrading according to the results and a possibility for self-funding

Insufficient capacity for implementing the changes

Introducing new services Slow implementation of the reformsConnecting the databases of RECA with other government institutions

Reduction of the interest of the clients from the services of RECA

Increase of the demands from the clients for the services of RECA

Reduction of the budget funds if there is an insufficient level of income from self-funding

The public support for the reforms in the cadastre

Competition of the internet browsers (for e.g. Google Earth)

Increased use of IC technology by society overall would enable more efficient service providing (current and future) of RECA

Return of the loan from the World Bank by RECA with no support from the Government of RM through allocated budget funds.

Increased economic activities and increased activity of the real estate market that result in increased demand of the RECA services

National Spatial Data InfrastructureCooperation with high education institutions

4.5.Priorities of the Government of RM

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In the process of strategic planning, the Real Estate Cadastre Agency as a public institution defines the Vision, Mission and the Strategic Objectives complementary and harmonized with the Strategic Priorities and objectives of the Government of the Republic of Macedonia.

The Strategic Priorities and the Objectives of the Government of the Republic of Macedonia for 2009, taken as a starting point for the Strategic Planning of RECA are the following

1. Increase of the economic growth and the competitiveness on a permanent basis, higher employment rate, growth of the life standard and quality of living.

2. Integration into NATO and EU

The decision of the Government of RM for the Strategic Objectives of RM for 2009 is annexed; however the Real Estate Cadastre Agency directly influences the achievement of the following Strategic Objectives of the Government of RM:

Improvement of the business climate;

Increase of the foreign and the domestic investments;

Continuation of the policy for even regional development;

Development of agriculture and support of the rural development;

Increase of the level of public investments in support of the economic development and increase of the competitiveness of the country;

Further development of information society;

Promotion of the public services quality;

4.6.Redefining the mandate and the functions of RECA, New RECA LawThe basic law that has defined the functions of the State Authority for Geodetic Works was the Law on Survey, Cadastre and Registration of Real Estate Rights (LSCRRER – Official Gazette of RM, 27/86; 17/91; 84/05 and 109/05, 70/06) and the Law on Survey and Land Cadastre (LSLC – Official Gazette, No. 34 /72 and 13/79).

According to the new Law on Real Estate Cadastre, the jurisdiction of the Real Estate Cadastre Agency is defined and it contains the following functions.

Forming and establishing a Geodetic-Cadastral Information Center

Performing basic geodetic operations

Performing real estate survey

Registering real estate rights

Establishing and maintaining the real estate cadastre

Preparing state topographic maps

Managing the spatial units registry

Establishing, maintaining and enabling public access to the National Spatial Data Infrastructure

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Supervision of the work of sole proprietors authorized surveyors and trade companies for geodetic works

The geodetic operations for special purposes relevant for the Republic of Macedonia determined by the Government of the Republic of Macedonia

4.7. Influences and basis for the strategic planning

The summary influences and the ongoing situation in the Real Estate Cadastre Agency are shown in the next table that defines a summary effect from cause and consequence relations of some activities and factors for defining the current situation and formulation of the future strategy of the Agency.

5. Formulating the Strategic Frame of RECA

Citizens not satisfied with the

work of the cadastre

Decision of the Government of RM

for completing denationalization

leganlization

Background of inappropriate

management and service provision

Ongoing reform processes, ongoing projects, strong for promoting the work

Introducing new services

Real Estate market of RM coming to life

Increasing of the demands of the clients

from the Cadastre

New Real Estate Cadastre

Real Estate Cadastre Agency

Strategy

Demands for modernizing the cadastre (EU, NATO, WB, GoRM)

Self-funding (fees)Introducing new services

and promoting the existing ones

Organizational design and systems

External influencesInternal influences

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The methodology and the identification process of the strategic topics and the structure of the strategic plan of the Real Estate Cadastre Agency are displayed in more detail and included in part 3 from the Strategic Plan, i.e. Chapter 3: Methodology used for the Strategic Planning.

The Strategic frame is formulated by the management and the expert team of the Real Estate Cadastre Agency, led by the consultants and the project team supported by the Project for Strengthening the Institutional Capacity of SAGW, funded by Sida.

5.1.Vision, Mission, Policies and Values The formulation of the Strategic framework of an organization starts with the defining of the purpose and intention of existence of that organization on a highest level, i.e. through its Mission Statement (mandate) and Vision.

Mission Statement of the Real Estate Cadastre Agency Completion, development and maintenance of the real estate cadastre on the entire territory

of the Republic of Macedonia.

Development and maintenance of the classical and modern geodetic reference systems

Development and production of various categories of cartographic products according to the needs of its users

Support of the development of the real estate market in RM and promoting adequate investment climate and support of the harmonization with EU and NATO standards.

Vision Statement of the Real Estate Cadastre Agency The Real Estate Cadastre Agency is a leader for geodetic and cadastral works and is a

guardian of the legal security of the geospatial data and the real estate rights data in RM.

The Real Estate Cadastre Agency is an effective, fast, modern, secure and reliable organization for providing services to all categories of users of services.

Policies and Values of the Agency:

Market orientation of the Agency and cost recovery (self-funding)

Proactive relation with all stakeholders in the creation of the policies

High quality standard of the services and competence of the staff

Nourishing an image of an Agency with a high rating and of strategic importance for RM

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5.2. Strategic objectives and development policiesCloser formulating of the strategy and of the development direction of the Real Estate Cadastre Agency is defined through the formulation of the Strategic Objectives. They define a clear and measurable development direction and implementation strategy, i.e. they are the essential bridge between the highest formulated objectives (the vision) and the specific measures and activities necessary to be taken for their realization. Strategic objective 1: Establishing an efficient, reliable and secure system for the guaranteed right to own property in RM.

Strategic objective 2: Ensuring conditions for an effective real estate market in the Republic of Macedonia.

Strategic objective 3: Ensuring conditions for the creation of an adequate and high quality Land Policy in the Republic of Macedonia.

Strategic objective 4: Efficient serving the needs and demands of the categories of users of the public services of the Agency.

Through thus formulated strategic objectives, the Strategy of the Agency gets a more realistic, more feasible and above all a more measurable character. The expected results and participation of the strategy on a mid term basis have a clear direction and provide a solid basis for high quality and adequate identification and design of specific development programs that the Agency should organize and implement in the period 2009-2013.

5.3.Identification of the priority programs In order to enable the strategic objectives, the Real Estate Cadastre Agency has identified five key development programs for the above named period, which are defined below:

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Strategic objectives

Programs

RM

RM

Establishing an efficient, reliable and secure system for the guaranteed right to own property in RM.

Ensuring conditions for an effective real estate market in the Republic of Macedonia.

Ensuring conditions for the creation of an adequate and high quality Land Policy in the Republic of Macedonia.

Efficient serving the needs and demands of the categories of users of the public services of the Agency.

Program for integrated GCIS based on ICT

Program for REC on the entire territory of RM.

Program for basic geodetic works and mapping

Program for National Spatial Data Infrastructure

Program for organizational development


1. Program for integrated geodetic-cadastral information system based on ICT

2. Program for real estate cadastre for the entire territory of RM

3. Program for basic geodetic works and cartography

4. Program for National Spatial Data Infrastructure - NSDI

5. Program for organizational development

With the exception of program 2 for the establishment of the Real Estate Cadastre on the entire territory of RM, the entire program has duration of five to six years.

The total budget for implementing all of the programs, including 2013 is 18,613,000 Euros.

Because the funds for Program 2 are provided with the loan from the World Bank and the Budget of RM, for complete implementation of the programs from the planned period it is necessary to have 16,413,000 Euros of additional development budget, not counting the regular operational costs of the Agency.

6. Development programs designThe development programs contribute to the achievement of the strategic objectives of RECA in the period till 2013. The Programs of the Real Estate Cadastre Agency were defined by the management and expert team of the organization, at the workshop in July, 2008. The design of each development program includes:

Defining the hierarchy of the objectives of the program and indicators for their measuring

Defining the structure of the program, i.e. its main results (components) and activities

Program implementation plan, i.e. logically connected whole of the program, from its components and activities that are interdependent through the time frame presented with adequate gantograms

Defining all necessary resources for the implementation of each program: material, human and financial resources, i.e. budget for every program.

In continuation we have the summary of the design of each of the five defined development programs in the Real Estate Cadastre Agency.

6.1.Program 1: Program for integrated GCIS The objective of the program for integrated Geodetic Cadastral Information System (GCIS) is the establishment of a system for gathering, processing, maintenance and management of cadastral data, i.e. with the descriptive and the spatial data from the real estate cadastre, the basic geodetic works, the topographic maps and the spatial units’ registry.

The GCIS program is the largest and most significant program of the Real Estate Cadastre Agency because it includes a significant part of the functions and the activities of RECA.

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The GCIS program is the only one with two sub-programs, namely sub-programs for

1. Digitalization of the Cadastral Maps (DCM) and

2. Sub-program for the Cadastral Information System - CIS.

The duration of the implementation of the program is six years, and the budget for implementation of the program for the period 2009-2013 is 11,538,350 Euros, thus making this program the largest and the most complex for implementing and funding.

Formally, the content4 of GCIS is defined through the following structure:

1. GCIS contains spatial and descriptive data from the real estate cadastre, the basic geodetic operations, the survey of real estate, topographic maps and the registry of spatial units, as well as data for the illegally built objects and for temporary constructions.

2. GCIS is consisted of the following parts: basic geodetic operations, real estate cadastre, records on illegally built constructions, records on temporary constructions, topographic maps and spatial units’ registry.

3. The data on illegally built constructions and on temporary constructions are kept separately from the data of the real estate cadastre.

4. GCIS is kept in electronic format and paper format.

In conclusion, The program on integrated GCIS is consisted of two main sub-programs, with a total of 5 integral components (projects), i.e.:

1.1 Subprogram for the Digital Cadastral Maps (DCM)

1.1.1 Preparation of Digital Cadastral Maps

1.1.2 Updating the Digital Cadastral Maps

1.1.3 Digital maintenance

1.2 Sub-program for the Cadastral Information System (CIS)

1.2.1 Е-cadastre

1.2.2 Setting up an intranet connection

1.2.3 Introducing ICT standards

The structure of the Program on integrated GCIS with all of the components and key activities is displayed in the diagram on the next page, while the implementation plan in the form of a Gantogram is included in the Annexes to this document.

4 GCIS in the internal communication in RECA has frequently been called the e-cadastre, i.e. centralized registration cadastral system, although this mostly means the ICT activities for GCIS.

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Diagram: Sub-programs, components and activities of the Program for integrated GCIS

6.2.Program 2: Program for REC on the entire territory of RMThe objective of the program for the real estate cadastre on the entire territory of the Republic of Macedonia is the introduction of the real estate cadastre, i.e. reforms from the land cadastre into a real estate cadastre. This involves combined activities of displaying and registration of the ownership rights over real estate, depending on the category and the status of the cadastral municipality and the data from the cadastral database.

The introduction of the real estate cadastre on the entire territory of the Republic of Macedonia is a several years long program, which is realized with funds from the World Bank loan and the Budget of the Republic of Macedonia. The budget for the entire completion of the program for the upcoming period is 2,200,000 Euros.

The program is planned to be completely implemented at the end of 2009 and there are funds provided for it from the World Bank, by RM. This is why the value of the program is included in the projections for the development budget for funding and investments.

The program is identified in the Strategic Plan of RECA because of the significance of the establishment of REC for the entire territory of RM and because of the comprehensive activities for which implementation significant resources will be required from RECA.

The components and the activities that are to follow in the next period are shown in the diagram below:

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Diagram: Components and activities of Program 2: Real Estate Cadastre on the territory of RM

6.3.Program 3: Program for basic geodetic operations and CartographyThe objective of the program for basic geodetic operations is the maintenance and the establishment of the state spatial reference systems and cartography. The emphasis on this program is maintenance and keeping the existing classic reference systems, and the establishment of new modern reference systems (active and passive GPS/GNSS, gravimetric and leveling network)

Components of the Program are the spatial geodetic system, the horizontal reference system, the vertical reference system, the gravimetric reference system and cartography. The comprised components are the basis for spatial data included in other programs and are necessary for the performing of the functions of the Real Estate Cadastre Agency.

The structure of the program, i.e. its main components and activities are displayed in the diagram below.

Diagram: Components and activities of Program 3 for basic geodetic operations and Cartography

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The budget for the complete implementation of the program in the planned period is 1,560,000 Euros.

The program for the basic geodetic operations and cartography, although thematically it touches upon them, it does not include the activities for digital mapping and editing the data from the Aero Photogrammetry, that are included as a component in the sub-program for DCM from the program for GCIS.

6.4. Program 4: Program for National Spatial Data Infrastructure – NSDIThe objective of the program for National Spatial Data Infrastructure is a design and establishment of the National Spatial Data Infrastructure (NSDI) of Republic of Macedonia.

The responsibilities and the duration of the NSDI implementation are intended for the member countries of the European Union, but as a candidate country, Republic of Macedonia has decided to follow the establishment of the NSDI according the planned tempo of a candidate country. The NSDI is defined according the Directive 2007/2/EC from the European Parliament dated March 14 th, 2007, which foresees an establishment of National Spatial Data Infrastructure within the European Union. The EU Directive has been enacted on May 15, 2007. With the Law on REC from 2008, the Agency for REC is responsible for coordination of the state and public institutions in R. Macedonia for establishment of the NSDI.

The Regulations from the Directive, which shall precisely define the obligations, responsibilities and standards of the NSDI are under the process of drafting i.e. the larger part of the regulations are under discussions on a EU level, which burdens the process for precise planning of the coordination activities for establishment of the NSDI by AREC.

The budget for complete implementation of the program in the following period is 404.000,00 EUR.

The components and the activities of the program are presented in the following diagram:

Diagram: Components and activities of Program 4 for NSDI

A specific component of the NSDI program is the Spatial Unit Register. The administration of the Spatial Unit Register has been transferred from the State Statistics Office to AREC in compliance to

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the Law on REC, which means an additional new activity for the AREC employees. For this purpose, the planned component funds have been aimed at training of the employees for administration of the Register, while the remaining activities are part of the operative activities of the AREC employees.

6.5.Program 5: Program for Organizational Development The goal of the organizational development program is an establishment of organizational design and management systems which will allow implementation of the remaining programs from the Strategic plan and will enable adequate functioning of AREC under the objective of achieving optimal results.

The Program for Organizational Development includes components such as:

Defining a new organizational design,

Establishment of new management systems and upgrade of the currents ones, and

Development and training of the AREC employees.

The budget for the complete implementation of the organizational development program in the period stated in the Strategic Plan is 2.770.000 EUR. It is significant to emphasize that the largest part of the total budget is intended for the establishment of the Enterprise Resource Planning System ЕРП5 accumulating 2.300.000 EUR, while 470.000 EUR are planned for the remaining activities.

The components and the activities of the program are presented in the following diagram:

5 ERP is an acronym that come from Enterprise Resource Planning - ERP

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Diagram: Components and activities of Program 5 for Organizational Development

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Strategic Plan of the Agency for Real Estate Cadastre 2009-2013

7. Integral Implementation Plan

The plan for implementation of each of the identified and designed programs in the AREC Strategic Plan according the defined activities is presented as annex of the Strategic Plan, while the Integral Plan for implementation of the programs, divided in sub-programs and components is presented in the following table.

Table: Integral plan for implementation of the identified programs

The Program for establishment of a Real Estate Cadastre (program 2) is the only program whose entire establishment is to conclude at the end of 2009. The remaining 4 programs have duration of five and a half years.

ID WBS Task Name Duration

1 1 Program for Geodetic Cadastre Information System - GCIS 73.95 mons

2 1.1 Digitalization of Cadastre Maps 73.95 mons3 1.1.1 Production of DCM 43.6 mons10 1.1.2 Updating of DCM 32.7 mons14 1.1.3 Digital Maintenance of DCM 65.25 mons17 1.2 CIS 71.8 mons18 1.2.1 Е-Cadastre 71.8 mons26 1.2.2 Internet services – Distribution system 71.8 mons27 1.2.3 ICT Standards 52.15 mons28 2 Program for Establishment of Real Estate Cadastre 19.65 mons29 2.1 Systematic Adjudication 17.45 mons32 2.2 Conversion 19.65 mons36 2.3 Established REC 0 days37 3 Program for Basic Geodetic Works and Cartography 71.8 mons

38 3.1 Spatial Reference System 71.8 mons47 3.2 Horizontal Reference System 65.2 mons50 3.3 Vertical Reference System 71.6 mons60 3.4 Gravimetric Reference System 71.8 mons67 3.5 Cartography 70.65 mons73 4 Program for National Spatial Data Infrastructure 71.3 mons

74 4.1 Planning and Design of NSDI 24 mons77 4.2 Establishment of Infrastructure 18 mons80 4.3 Launch of Geo-portal and maintenance 10 mons82 4.4 Administration of Spatial Unit Registry 71.3 mons87 5 Program for Organizational Development 71.7 mons88 5.1 Definition of new organizational design 19.6 mons92 5.2 Establishment of new management systems 71 mons

104 5.3 Conveyance of staff trainings 63 mons

12/31

Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 32007 2008 2009 2010 2011 2012 2013 2014

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8. Organizational DesignThe Agency for Real Estate Cadastre is encountering vast challenges and expectations in the upcoming period. The organizational design must reflect the strategic objectives i.e. must provide on time and full implementation of the planned programs in order to achieve the AREC strategic objectives.

The Program for organizational development defines the AREC development activities in terms of establishment of adequate design and management systems for implementation of the programs. Below are the specific subjects/issues and challenges for the organizational design resulting from the Strategic Plan, who are also based on the analysis of the current Strategy:

Establishment of New Organizational Units. This means establishment and strengthening of the sectors and departments resulting from the new responsibilities of AREC and from the needs of the organization, in order to close the current gaps in the cooperativeness of the present demands. They include establishment of organizational unit for procurement, organizational unit for international cooperation, strengthening of the sectors for strategy and development and establishment of organizational unit for training and human resources development.

Establishment of integrated management systems via cooperation of the management staff. The Program for organizational development plans an introduction of new or upgrade of the current management systems. For the purpose of introducing the systems, the program initially needs significant effort and time dedicated by the AREC Management. However, the introduction of the systems which are not complimentary can lead to even bigger problems and decrease the motivation for further upgrade of the systems. Example: The next activity is the introduction of the necessary HR systems, especially due to the change in the status of the organization and the status of its employees. The sub-system for evaluation and rewarding the employees is directly linked with the sub-system for salaries in the Enterprise Resource Planning System, making their complementary a necessity.

Reorganization of working procedures. A reorganization of the current working processes in the organization is necessary in order to achieve optimal performance of the work. For example: the GCIS program is designed with the expectation that large part of the activities for digitalization of the archive originals would be executed by employees of the local REC offices.

Strengthening of team work. The existence of the gap between the operative and project activities, which adds for the partially efficient performance of the works, can be partially a result of the weak team work and defined project responsibility, especially in cases where several sectors are included in the implementation. For this purpose, the proposal states that the monitoring should be performed by the Sector for Plan and Development. In terms of the projects in which several sectors are included, the Project Managers should be AREC cadastre officers or professionals engaged just for the specific project.

Strengthening of Internal Communication. Intensification of the responsibilities delegation among the management staff, definition of the periodical formal meetings of the management within the organizational unit, definition of the notification procedures.

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9. Multiyear Financial Projections9.1.Methodology and Presumptions

During the definition of the financial projections for the period 2009-2013, the AREC has taken into account three key factors directly influencing the revenues:

Demand of the AREC services (current trends and projections for new ones)

Tariff policy

Allocated budget funds from the Budget of R. Macedonia in compliance with the fiscal strategy of R. Macedonia for the period 2009-2011

Demand of AREC services is one of the most significant factors directly influencing the financial plan, i.e. the self-financing revenues. Against the tariff policy, the demand directly influences the balance of the revenues and expenditures. The demand projections are defined according the current demand, with expectations of increase in the demands for the larger part of the services, despite the expectations of decrease of part of the services as in the case of the Possessory Lists.

During the projections of the AREC service demands, AREC has included only the new services which are starting to be offered immediately, such as the list for conditional registration, the list for temporary objects and similar. The projected scope of services for the following years included in the projections is presented in the following table:

No Type of service / cases 2009 2010 2011 2012 2013

1 Issuance of possessory/property (and evidence) lists 130% 125% 120% 115% 105%2 Transactions of data in the cadastre registry book 120% 125% 130% 125% 120%3 Certificate for Historical Records 100% 90% 80% 70% 70%4Certificates - for data in the cadastre registry book 110% 110% 100% 100% 100%5 Mortgage-Application 110% 120% 120% 115% 115%6 Mortgages-deletion and foreclosure 110% 120% 120% 115% 115%7 Court orders and restrictions 105% 105% 105% 105% 105%8 Field operations and survey 0% 0% 0% 0% 0%

9Previous procedure for geodetic survey and identification

110% 110% 105% 105% 105%10 Cadastre Map Copy/Building skecthes 105% 105% 105% 100% 100%11 Denationalization 0% 0% 0% 0% 0%12 Copy with cadastre parcel coordinates 105% 105% 105% 100% 100%13 Identification of old with new CP 115% 115% 110% 105% 100%14 Official findings-cadastre map with cadastre registry book 100% 100%15 Official findings-cadastre registry book with database 100% 100%

16Issuance of data, verification of geodetic reports (for private companies) 115% 120% 120% 115% 110%

17Maintenance (additional adjudication)

115% 120% 125% 120% 115%18 Sporadic Registration 100% 0% 0% 0% 0%19 Systematic Registration (adjudication)) 115% 20% 0% 0% 0%

20Numeric data (not stated in the new archive map)

105% 105% 105% 105% 105%21 Other

New services 2009 2010 2011 2012 2013List for conditional registration? ? 100.00% 150.00% 150.00% 150.00% 150.00%Inventory List 100.00% 100.00% 100.00% 100.00% 100.00%List for temporary objects? 100.00% 100.00% 100.00% 100.00% 100.00%Electronic access into the data base (for one check)1 ( ) 150.00% 150.00% 150.00% 150.00% 150.00%Data from the intabulation books 100.00% 100.00% 100.00% 100.00% 100.00%

Demand of AREC services per years

3


Table: Demand of AREC services for the period 2009-2013

The tariff/fee policy has a significant impact on the AREC financial projections in the upcoming period and is directly dependent form two overriding demands:

o The demands from the Government of RM for decreasing the service fees

o The necessary level of fees for generating revenues that would allow the Agency to finance the implementation of the development projects in the Agency

In defining the fees, the first factor is considered as crucial, where the fees have been decreased or are at the level of the current fees, which are charged for the AREC services. In the projection of the revenues and the expenditures are used fees which are displayed in the following table:

PRICELIST OF SERVICES/CASES

No. Type of service /case Price (MKD)

1 Issuing possession/property (and evidence) lists 125

2 Transactions of data in the cadastre registry book 450

3 Certificates for the performed transactions (historical record) 400

4 Certificate – confirmation notes for the data in the cadastre registry book 50

5 Mortgages-application 900

6 Mortgages- deletion and foreclosure 900

7 Court orders and restrictions 900

8 Field operations and survey 0

9 Previous procedure for geodetic survey and identification 350

10 Cadastre map copy /Building sketches 175

11 Denationalization 0

12 Copies with cadastre parcel coordinates 200

13 Identification of a new with an old CP 50

14 Official findings- cadastre map with cadastre registry book 0

15 Official findings - cadastre registry book with a data base 0

16 Issuing data, verification of Geodetic Reports (to private companies) 500

17 Maintenance registration 500

18 Sporadic registration 500

19 Systematic registration 500

20 Numeric data (not listed in the new archive map) 500

21 Other

New Services

List for conditional registration 125

Inventory List 125

3


Evidence List 125

List for temporary objects 60

Electronic access into the data base (for one check) 70

Data from the intabulation books 125

Table Pricelist for the AREC services

It has been recommended that the fees should be revised one or two years after the introduction of the new services and the use of the new fees/tariffs.

3


The funds allocated from the budget of RM are presented as they were defined for the period 2009-2011, according the budget limits in the Fiscal Strategy of RM, necessary for drafting the Budget for 2009.

The assumption is that the funds which are allocated from the Budget of RM will be reduced in the upcoming years, after the implementation of the priority development projects. After this period, the Agency will have to cover the expenditures from its own revenues.

The allocated funds from the Budget of RM for the upcoming three years are displayed in the following Table:

Year 2009 2010 2011

Total 356 438 478

Salaries 285 310 316

Co-financing of the WB project

41 27 54

Mill.(000.000) MKD

In preparing the projections for the AREC budget, the allocated funds from the Budget of RM for 2012 and 2013 are the same with the allocated funds from the Budget for 2011.

4


9.2.Estimates of the necessary development budget and the available budget for investing in development projects

The available budget for investments and development of the Agency is estimated according the anticipated revenues and expenditures, calculated according the current tariff policy, the growth of the demand for certain categories of services and the anticipated funds which will be allocated from the Budget of RM. According these anticipations, the available cumulative development budget for 2008-2013 is 9,475,974 Euro. The table bellow provides a summary projection of the available budget:

2009 2010 2011 2012 2013INCOME

Total income from self-funding (according to service)182.926.

915209.547.

594245.069.

478277.024.

171302.018.

640

Transferred funds from last year75.000.0

00

Income from the budget of Macedonia355.944.

000437.725.

000478.453.

000478.453.

000478.453.

000

Basic salary and fees 201.889.0

00219.650.0

00224.000.0

00318.383.0

00318.383.0

00

Benefits82.410.00

089.620.00

091.430.00

0 Other benefits 855.000 925.000 953.000

Other income from the budget of RM70.790.00

0127.530.0

00254.453.0

00160.070.0

00160.070.0

00

Rest Entry - salaries70.790.0

00127.530.

000152.070.

000160.070.

000160.070.

000

TOTAL INCOME613.870.9

15647.272.5

94723.522.4

78755.477.1

71780.471.6

40

TABLE OUTCOME PER BUDGET AND SELF - FUNDING

EXPENDITURES831.814.0

00888.165.0

00842.483.0

00814.591.0

00790.173.0

00

BUDGET 573.814.

000629.165.

000557.483.

000537.069.

000506.069.

000

Programs 10 and 20314.944.

000335.195.

000351.383.

000343.383.

000343.383.

000

4


Salaries, rent and fees285.154.

000310.195.

000326.383.

000318.383.

000318.383.

000

Goods and services29.790.0

0025.000.0

0025.000.0

0025.000.0

0025.000.0

00

LA program41.000.0

0027.000.0

0054.000.0

0054.000.0

0054.000.0

00

Interest payment20.000.0

00 0 0 0 0

Capital expenditures4.500.00

0

Payment of assets 027.000.0

0054.000.0

0054.000.0

0054.000.0

00

Program 2А GCIS209.470.

000246.150.

000152.100.

000139.686.

000108.686.

000

Goods and services110.050.

000114.400.

00033.300.0

0049.476.0

0066.216.0

00


00131.750.

000118.800.

00090.210.0

0042.470.0

00

Program 2B Basic geodetic operations8.400.00

020.820.0

00 0 0 0


020.820.0

00 0 0 0

SELF-FUNDING258.000.

000259.000.

000285.000.

000277.522.

000284.104.

000

Programs 10 and 20179.400.

000199.000.

000224.200.

000233.480.

000242.780.

000

Salaries, rents and fees30.500.0

0037.500.0

0043.000.0

0042.980.0

0042.980.0

00

Goods and services128.900.

000138.500.

000155.200.

000164.500.

000172.800.

000


0023.000.0

0026.000.0

0026.000.0

0027.000.0

00

Program 2B Basic geodetic operations15.500.0

00 019.800.0

008.494.00

06.324.00

0

Goods and services 0 019.800.0

008.494.00

06.324.00

0


00 0 0 0 0Program 21 NSDI 3.100.00 0 21.000.0 0 0

4


0 00


0 0 0 0 0

Capital expenditures 0 021.000.0

00 0 0

Table: Projection for the available budget for development for 2008-2013

It is significant to mention that the revenues which are part of the available budget for financing development projects are not equally allocates in all years, however this planning has an internal logic/explanation.

TABLE EXPENDITURES PER PROGRAMS

EXPENDITURES 829.814.000 888.165.000 842.483.000 814.591.000 790.173.000Programs 10 and 20 492.344.000 534.195.000 575.583.000 576.863.000 586.163.000Salaries, rents and fees 315.654.000 347.695.000 369.383.000 361.363.000 361.363.000

Basic salaries and fees 222.718.000 245.330.000 263.591.000 255.864.000 255.864.000Benefits 92.284.000 101.642.000 105.054.000 104.390.000 104.390.000Other costs 652.000 723.000 738.000 1.109.000 1.109.000Goods and services 158.690.000 163.500.000 180.200.000 189.500.000 197.800.000Travel costs and per diems 10.500.000 11.000.000 13.200.000 13.500.000 13.800.000Utilities, heating, communication and transport 54.690.000 54.000.000 58.000.000 60.000.000 62.000.000Small inventory, tools and other materials for renovations 18.000.000 19.000.000 22.000.000 24.000.000 26.000.000Reparations and ongoing maintenance 20.000.000 22.000.000 24.000.000 26.000.000 28.000.000Contractual services 24.500.000 24.000.000 28.000.000 29.000.000 30.000.000Other ongoing costs 31.000.000 33.500.000 35.000.000 37.000.000 38.000.000

4


Capital expenditures 18.000.000 23.000.000 26.000.000 26.000.000 27.000.000Construction objects/buildings 10.000.000 3.000.000 5.000.000 5.000.000 5.000.000Purchasing furniture, equipment, vehicles and machines 8.000.000 20.000.000 21.000.000 21.000.000 22.000.000Other non-financial assets (software etc.) 0 0 0 0 0LA program 41.000.000 27.000.000 54.000.000 54.000.000 54.000.000Goods and services 16.500.000 0 Interest payment 20.000.000 0 Capital expenditures 4.500.000 Payment of capital assets 0 27.000.000 54.000.000 54.000.000 54.000.000Program 2A GCIS 269.470.000 306.150.000 172.100.000 175.234.000 143.686.000Goods and services 110.050.000 114.400.000 33.300.000 49.476.000 66.216.000Reparations and ongoing maintenance 17.050.000 21.400.000 33.300.000 30.256.000 46.996.000Contractual services 93.000.000 93.000.000 0 19.220.000 19.220.000Capital expenditures 159.420.000 191.750.000 138.800.000 125.758.000 77.470.000Construction objects/buildings 0 2.500.000 0 0 0Purchasing furniture, equipment, vehicles and machines 38.350.000 71.900.000 34.000.000 10.540.000 24.800.000Other non-finance assets (software etc) 121.070.000 117.350.000 104.800.000 115.218.000 52.670.000

Program 2B Basic geodetic operations 23.900.000 20.820.000 19.800.000 8.494.000 6.324.000Goods and services 8.400.000 20.820.000 19.800.000 8.494.000 6.324.000Reparations and maintenance 0 3.220.000 3.200.000 3.410.000 6.200.000Contractual services 8.400.000 17.600.000 16.600.000 5.084.000 124.000Capital expenditures 15.500.000 0 0 0 0Purchasing furniture, equipment, vehicles and machines 12.500.000 0 0 0 0Other non-finance assets (software etc) 3.000.000 0 0 0 0

Program 21 NSDI 3.100.000 0 21.000.000 0 0Goods and services 3.100.000 0 0 0 0Contractual services 3.100.000 0 0 0 0Capital expenditures 0 0 21.000.000 0 0Purchasing furniture, equipment, vehicles and machines 0 0 10.000.000 0 0Other non-finance assets (software etc) 0 0 11.000.000 0 0

Table: Necessary Budget for implementation of the programs for 2008-2013

4


9.3. Strategy for financing the budget gap in 2009-2013

The difference between the financial projections from the available Agency funds and the total necessary budget for implementation of all development programs included in the Strategic Plan is a cumulative amount of circa 9.2 million Euros.

This is a significant lack of funds and requires an adequate strategy for covering the remaining costs. The available fiscal instruments are the following:

Changing the tariff/fee policy i.e. increasing the fees for certain services which are provided to the end users

Financing certain category of projects and activities with donor assistance by non-refundable funds (grants). In this category are included activities for organizational development such as strengthening of the institutional capacities (technical assistance, management trainings and activities), procurement of certain applicative software and establishment of management systems.

Increasing the funds allocated from the budget of RM. Although this measure is fiscally equivalent to the first instrument i.e. increasing the Agency fees, from a political aspect, it might be better if the Government finances certain items from the development budget directly through planned budget funds, instead of burdening the end users. Economically, this is an equivalent solution but the real distribution of the burden to certain users is not fiscally equivalent.

A combination of the above financial instruments

The final definition of the financial strategy for overcoming the budget gap between the necessary and the available financing will have to be negotiated with the Government of RM and the Ministry of Finance, which is responsible and in control of the budget allocation of the funds for covering the expenditures per state functions. The Agency has arguments and precisely defined needs which are included in the overall and detail design of its development programs, summarized previously and presented in detail in the Annexes of this Strategic Plan.

4

Стратешки план на Агенција за катастар на недвижности 2008-2013

10. Risk analysis and Plan for avoiding the potential risks Crucial aspects for the Agency for Real Estate Cadastre are:

1. Identifying (on-time and honestly) the risks resulting from all working activities/aspects,

2. Analysis of the level of risk, as well as 3. Defining strategies for minimizing or avoiding the risks.

The Table bellow classifies the identified risks according the same model.

Identification and description of the risk

Level of the risk

Strategy for avoiding the risk

Political risk High

On-time negotiations and meetings with government representatives for AREC issues

Communicating the AREC development processes through adequate Public Relations

Financing development projectsIn case of insufficient allocated Budget funds while insisting on lower fees for the services.

High

Negotiations with the Government of RM for funds for the informational GCIS system

Increasing the fees for the provided services at a level which will enable financing of development projects via self-financing

HR Risks This risk refers to the establishment of the new HR systems i.e. new employments, staff training and development, assessment of the performances, the rewarding and the motivation.

High

Constant cooperation and regular meetings with management staff

Hiring external consultants for defining and implementation of the HR Systems

Training the management staff on the new systems before and after the system establishment

Risk of reduced reforms Mid Strengthening the internal communication

Revision of the achieved by the General Director

Risk of inadequate ICT system Low Careful planning of the activities and follow up on the implementation

Strenghtening the procurement capacities and defining adequate tendering procesures

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strategic plan reca 2009-2013

Documents