This paper describes the preparation of such a business case for a proposed EUR 47 million (USD 50 million) Integrated Land Management Program (ILMP) in Albania. The Program aims to improve property rights and land management, reduce the current constraints on access to land and lead to the creation of a strong land market as the underpinning to a modern economy. It requires underpinning information infrastructure of which geospatial data is the main component, often referred to as a National Spatial Data Infrastructure (NSDI).
The quantitative results of the study are presented in the form of a cost-benefit analysis. The period of the analysis is 12 years (5 years of investment followed by 7 years of operation) and a discount rate of 12%.
Additional non-market benefits were identified under the following heading:
In the final section, a series of next steps are identified:
Below the main benefits are summarised in a table.
Ref | Impact | Evidence | Methodology | Net Undiscounted Value of Impacts |
1 | National geospatial data sharing | ASIG cost estimates and usage assessment | Multiplier effect of information sharing | €38.3m
(total for project period) |
2 | Reduced land-related court case costs | Court Case records
Survey of Legal Professionals |
Average court case cost x reduced case volumes | €2.6m
(annual saving) |
3 | Reduced Loss and Damage from Better Flood Prediction | Post-disaster Study (PDNA) | Expert judgement (4% improvement) from improved Digital Terrain Models | €0.7m-€2.0m
(per 5-year event) |
4 | Property Tax Collection | Expert interviews and tax revenue records | Predictions of increased revenues from Municipalities | €2.1m – €2.5m
(annual increase) |
5 | Cost savings in infrastructure development | Project costs from published reports and expert interviews | Potential saved costs of surveys and design for recent projects | €0.5m-1.5m
(annual saving) |
6 | Land Market Growth | Regional Studies plus interviews with subject matter experts | National Accounts and Benefits Transfer | €5m – €46m
(incremental annual growth after investment period) |
7 | Improved road navigation | Global Study | Benefits Transfer | Up to €3.7m p.a.
(incremental growth) |
8 | Improved Government Efficiency | Interviews | Predicted time savings per employee | €3.0-€4.0m
(over project period) |
Unpublished work: Albania Integrated land management program – economic analysis, World Bank, GSURR.
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