Integrated land management program – Albania economic analysis

Overview

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%.

Geographical scope

Albania

Non-quantified impacts

Additional non-market benefits were identified under the following heading:

European Union Accession – overriding political objective of the Government
Reduced Number of Property-related Court Cases – improving confidence in the justice system
Affordable Housing – through better planning and aiding social cohesion
Climate Change Adaptation – improved environmental protection

In the final section, a series of next steps are identified:

Genericise the Methodology – to enable the methodology to be applied more widely across the developing world
Integrate into the WB-UNSD NSDI Toolkit – supporting a major initiative between the United Nations and World Bank on Global Geospatial Information Management (GGIM)
Enhance the Economic Analysis using Computable General Equilibrium (CGE) Modelling – enabling the results to be expressed in terms of macroeconomic parameters such as GDP
Further Work on Social Media sources and Big Data Analytic Tools – to leverage these rich data sources particularly where statistical and other economic data is not available

Quantifiable impacts

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)

Reference

Unpublished work: Albania Integrated land management program – economic analysis, World Bank, GSURR.

Region

Albania

Study type

Missions, interviews, case study and benefit transfer models for a cost benefit analysis

Economy sector

Infrastructure (Transport), Tourism, Public Safety and Security