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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 Agency 2, 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

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.

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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: () 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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Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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 esociety.
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.

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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 Methodology


The 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 Agencys 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.

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

NP A A

Mi si ja i
Nadl e` nosti
nost i

Razr abot ka na
St r at egi ja

Ongoing Government Policy


(budget turnover)

F or mul i r awe
St r ategi
at egi ja

SP

K onkr et ni pr ogr ami i


pot pr ogr ami (GP RV)

St r at e{ ki
P r i or i t et i
na VRM

Sr ednor o~na
F i skal na
Ramka

Annual budget cycle

P l an za Spr oveduvawe

Budget
Midterm Planning Cycle

AWPGM

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.

Stage 1

Stage 4

Stage 3
Situation
Analysis

Mission,
Vision and
Values

OSP

Stage 2

Stage 5

Plan Stage 6
preparat
ion

NPAA

Annual
Operational
Plan

Stage 7

Monitoring
and
evaluation

Reports from
monitoring
and 6
evaluation

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

Determinin
g objectives
and policies

Preparation

Plan
implementa
tion
Strategic plan
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.

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.

Defining the objective


of the state
administration body:
Mandate
Mission
Vision

Identification of strategic
decisions:
Strategic level
Operational level

Approa
ches

Formulating
strategies:
Objectives
Priorities
(policies)
Programs

Strategic plan

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

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

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.

Mandate, Mission and Vision

Priorities

Strategic objectives

Programs and program


objectives (indicators)

Objective 1

P1

P2

Objective 2

P3

P4

P5

Objective 3

P6

P7

P8

Results
(components)
Crossed (common) functions

Financial
Procurement

Human resources
ICT

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.

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


ID
1
2

Task Name

Duration

66 mons
Plan za Sproveduvawe na Strategijata na Agencija za
Katastar na Nedvi`nosti - Primer
48 mons
Programa za GKIS

2007
Cost
Q4

Baza na podatoci (alfanumeri~ka)

12 mons

30 mil MKD

Digitalizacija na arhivski i rabotni originali

48 mons

300 mil MKD

Vospostavuvawe na IKT

32 mons

30 mil MKD

Obuki

26 mons

Po~etok na Elektronsko odr`uvawe na GKIS

Programa za Osnovni Geodetski Raboti i


Kartografija

0 mil MKD

66 mons

390 mil MKD

48 mons

110 mil MKD

GNSS (GPS)

18 mons

40 mil MKD

11

Nivelmanska mre`a

48 mons

20 mil MKD

12

Gravimetriska mre`a

36 mons

13

Odr`uvawe na klasi~nite referentni sistemi

14

Programa za Kartografija

10 mil MKD

60 mons

60 mil MKD
10 mil MKD

Topografski karti 1:25000

24 mons

16

Topografski karti vo pisitni razmeri (1:50000;


1:100000; 1:300000)

36 mons

20 mil MKD

18 mons

150 mil MKD

Programa za Katastar na Nedvi`nosti (SB)

18

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

22

Vospostavuvawe na KN na celata teritorija

0 mil MKD

23

Programa za Organizaciski Razvoj

18 mons

30 mil MKD

24

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
Kompletirawe na organizaciskiot razvoj

28

Programa za NIPP (NSDI)

29

0 mil MKD
30 mil MKD
7 mil MKD

Dizajn na programata (Fizibiliti Studija)

12 mons

31

Obuki

12 mons

3 mil MKD

32

Dizajn na potrebni bazi na podatoci i


identifikacija na site zasegnati strani
Nabavka na IKT i softverski re{enija

12 mons

10 mil MKD

12 mons

10 mil MKD

0 mons

0 mil MKD

Kompletirawe na Startna Faza na


implementacija na NIPP

34

Q4

2010
Q1 Q2

Q3

Q4

2011
Q1 Q2

Q3

Q4

2012
Q1 Q2

Q3

Q4

2013
Q1 Q2

3/14

11/25

5 mil MKD

0 mons
66 mons

30

33

Q3

5 mil MKD

0 mons

6 mons

2009
Q1 Q2

20 mil MKD

60 mons

15

17

Q4

5 mil MKD

0 mons

10

Vospostavuvawe na novi referentni sistemi

Q3

365 mil MKD

2008
Q1 Q2

755 mil MKD

11/25

7/31

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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Strategic Plan of the Real Estate Cadastre Agency 2009-2013


4. The analysis and the diagnosis of the existing situation of RECA
In 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 documents


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


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 up


The 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.

Strategic planning
and control

Management
information system
(financial/material
accounting)

Human resources

Information and
communication (formal
and informal)

Table: Basic organizational systems

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 Plan of the Real Estate Cadastre Agency 2009-2013


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 trends
Apart 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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Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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

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.
Applications per sector, period January-June 2008
120,000

New January 2008


Solved January 2008

100,000

New February 2008


Solved February 2008

80,000

New March 2008


Solved March 2008

60,000

New April 2008


Solved April 2008

40,000

New May 2008


Solved May 2008

20,000

New June 2008


Solved June 2008

Skopje Sector

Sector

Sector

Total

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
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Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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 owners
2. Private surveying companies and authorized surveyors
3. Professional Agencies (Notaries, Attorneys, Insurance companies, Financial institutions,
Public Utility companies and public services, Real Estate Agencies)
4. Local Self-Government
5. 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

16

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.

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
17

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.
Total self-funding income of the Real Estate Cadastre Agency for the first
semester of 2008
40,000,000 MKD
35,000,000 MKD
Total income per
month

30,000,000 MKD

Head office

25,000,000 MKD

Sector B

20,000,000 MKD
15,000,000 MKD

Sector A

10,000,000 MKD

Skopje

5,000,000. MKD
-

4.3.3. Ongoing development projects


In 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 - GCIS

The geodetic cadastral information system (GCIS) refers to what has so far been called the ecadastre 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.

18

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

Geodetic Cadastral Information System


-GCIS
Alphanumerical databases
(the cadastral database)

- 70 % completed
Setting up in the head
office
First use in Skopje

Digital graphical database


(digitalization of the cadastral
maps)

Digitalization of the archive


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

Outdated digitized archive maps


Non-defined updating and
maintenance procedure

ICT infrastructure
The hardware for the servers and the storage procurement ongoing
Preparation 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 database
Demands:
Necessary upgrade of the system in Sectors A and B
There 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

4.3.3.2. Real Estate Cadastre


The 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.

19

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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

20

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.

21

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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
management

RECA

resource Lack of adequate quality control of the


work done by the private geodetic
practice and the staff

Strong political will for reforming Lack of work procedures, the existing
the cadastre, from the management procedures are too complex
and the Government of RM.
Introduction of new sectors and Lack of or insufficient staff performance
departments for overcoming the control and monitoring mechanisms
identified weaknesses
Poor link between the local branch offices
and the head office
Lack 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

22

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


complete, and its implementation is not
precise.
Corruption

Opportunities

Threats

New 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 selffunding

Insufficient capacity for implementing


the changes

Introducing new services

Slow implementation of the reforms

Connecting the databases of RECA Reduction of the interest of the clients


with other government institutions
from the services of RECA
Increase of the demands from the Reduction of the budget funds if there
clients for the services of RECA
is an insufficient level of income from
self-funding
The public support for the reforms in Competition of the internet browsers
the cadastre
(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 Infrastructure
Cooperation
institutions

with

high

education

4.5.Priorities of the Government of RM


23

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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 Law
The 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


24

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

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

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.
Internal influences

Background of
inappropriate
management and service
provision

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

External influences
Citizens not
satisfied with the
work of the
cadastre

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

Real Estate
market of RM
coming to life

New Real Estate


Cadastre

Decision of the
Government of RM
for completing
denationalization
leganlization
Increasing of the
demands of the clients
from the Cadastre

Introducing new
services
Real Estate
Cadastre Agency
Strategy

Self-funding (fees)
Introducing new services
and promoting the
existing ones
Organizational design and
systems

25

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


5. Formulating the Strategic Frame of RECA
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

26

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

5.2. Strategic objectives and development policies


Closer 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:

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

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

Program for
integrated GCIS
based on ICT

Program for
REC on the
entire territory of
RM. RM

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 basic


geodetic works
and mapping

Program for
National Spatial
Data
Infrastructure

Program for organizational development

Programs

27

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

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 design


The 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.

28

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.
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

-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.

29

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

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

6.2.Program 2: Program for REC on the entire territory of RM


The 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:

30

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

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 Cartography


The 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

31

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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 NSDI


The 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
32

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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
5 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:

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

33

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

Diagram: Components and activities of Program 5 for Organizational Development

34

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 subprograms and components is presented in the following table.
ID

WBS

Duration 2007

Task Name

2008
Qtr 3

1
2
3
10
14
17
18
26
27
28
29
32
36
37
38
47
50
60
67
73
74
77
80
82
87
88
92
104

1 Program for Geodetic Cadastre Information System - GCIS


1.1
Digitalization of Cadastre Maps
1.1.1
Production of DCM
1.1.2
Updating of DCM
1.1.3
Digital Maintenance of DCM
1.2
CIS
1.2.1
-Cadastre
1.2.2
Internet services Distribution system
1.2.3
ICT Standards
2 Program for Establishment of Real Estate Cadastre
2.1
Systematic Adjudication
2.2
Conversion
2.3
Established REC
3 Program for Basic Geodetic Works and Cartography
3.1
Spatial Reference System
3.2
Horizontal Reference System
3.3
Vertical Reference System
3.4
Gravimetric Reference System
3.5
Cartography
4 Program for National Spatial Data Infrastructure
4.1
Planning and Design of NSDI
4.2
Establishment of Infrastructure
4.3
Launch of Geo-portal and maintenance
4.4
Administration of Spatial Unit Registry
5 Program for Organizational Development
5.1
Definition of new organizational design
5.2
Establishment of new management systems
5.3
Conveyance of staff trainings

Qtr 1

2009
Qtr 3

Qtr 1

2010
Qtr 3

Qtr 1

2011
Qtr 3

Qtr 1

2012
Qtr 3

Qtr 1

2013
Qtr 3

Qtr 1

2014
Qtr 3

Qtr 1

73.95 mons
73.95 mons
43.6 mons
32.7 mons
65.25 mons
71.8 mons
71.8 mons
71.8 mons
52.15 mons
19.65 mons
17.45 mons
19.65 mons
0 days
71.8 mons

12/31

71.8 mons
65.2 mons
71.6 mons
71.8 mons
70.65 mons
71.3 mons
24 mons
18 mons
10 mons
71.3 mons
71.7 mons
19.6 mons
71 mons
63 mons

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.

35

Qtr 3

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

8. Organizational Design
The 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.

36

Strategic Plan of the Real Estate Cadastre Agency 2009-2013

9. Multiyear Financial Projections


9.1.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:
Demand of AREC services per years
No Type of service / cases

2009

2010

2011

2012

2013

1 Issuance of possessory/property (and evidence) lists


2 Transactions of data in the cadastre registry book
3 Certificate for Historical Records
4Certificates - for data in the cadastre registry book
5 Mortgage-Application
6 Mortgages-deletion and foreclosure
7 Court orders and restrictions
8 Field operations and survey
Previous procedure for geodetic survey and identification
9
10 Cadastre Map Copy/Building skecthes
11 Denationalization
12 Copy with cadastre parcel coordinates
13 Identification of old with new CP
14 Official findings-cadastre map with cadastre registry book

130%
120%
100%
110%
110%
110%
105%
0%

125%
125%
90%
110%
120%
120%
105%
0%

120%
130%
80%
100%
120%
120%
105%
0%

115%
125%
70%
100%
115%
115%
105%
0%

105%
120%
70%
100%
115%
115%
105%
0%

110%
105%
0%
105%
115%
100%

110%
105%
0%
105%
115%
100%

105%
105%
0%
105%
110%

105%
100%
0%
100%
105%

105%
100%
0%
100%
100%

15 Official findings-cadastre registry book with database


Issuance of data, verification of geodetic reports
16 (for private companies)
Maintenance (additional adjudication)
17
18 Sporadic Registration
19 Systematic Registration (adjudication))
Numeric data (not stated in the new archive map)
20
21 Other
New services
??
List for conditional registration

100%

100%

115%

120%

120%

115%

110%

115%
100%
115%

120%
0%
20%

125%
0%
0%

120%
0%
0%

115%
0%
0%

105%

105%

105%

105%

105%

2009
100.00%
100.00%
100.00%
150.00%
100.00%

2010
150.00%
100.00%
100.00%
150.00%
100.00%

2011
150.00%
100.00%
100.00%
150.00%
100.00%

2012
150.00%
100.00%
100.00%
150.00%
100.00%

2013
150.00%
100.00%
100.00%
150.00%
100.00%

Inventory List
?
List for temporary objects
( (for
) one check)
Electronic access into the data1base
Data from the intabulation books

37

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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

Issuing possession/property (and evidence) lists

125

Transactions of data in the cadastre registry book

450

Certificates for the performed transactions (historical record)

400

Certificate confirmation notes for the data in the cadastre registry book

50

Mortgages-application

900

Mortgages- deletion and foreclosure

900

Court orders and restrictions

900

Field operations and survey

Previous procedure for geodetic survey and identification

350

10

Cadastre map copy /Building sketches

175

11

Denationalization

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

15

Official findings - cadastre registry book with a data base

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

Price
(MKD)

New Services
List for conditional registration

125

Inventory List

125

38

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.

39

Strategic Plan of the Real Estate Cadastre Agency 2009-2013


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.

40

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

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

2013

INCOME
Total income from self-funding (according to service)
Transferred funds from last year
Income from the budget of Macedonia
Basic salary and fees
Benefits
Other benefits
Other income from the budget of RM
Rest Entry - salaries
TOTAL INCOME

EXPENDITURES
BUDGET
Programs 10 and 20

182.926.
915
75.000.0
00
355.944.
000
201.889.0
00
82.410.00
0
855.000
70.790.00
0
70.790.0
00
613.870.9
15

209.547.
594

245.069.
478

277.024.
171

302.018.
640

437.725.
000
219.650.0
00
89.620.00
0
925.000
127.530.0
00
127.530.
000
647.272.5
94

478.453.
000
224.000.0
00
91.430.00
0
953.000
254.453.0
00
152.070.
000
723.522.4
78

478.453.
000
318.383.0
00

478.453.
000
318.383.0
00

160.070.0
00
160.070.
000
755.477.1
71

160.070.0
00
160.070.
000
780.471.6
40

814.591.0
00
537.069.
000
343.383.
000

790.173.0
00
506.069.
000
343.383.
000

TABLE OUTCOME PER BUDGET AND SELF - FUNDING


831.814.0
888.165.0
842.483.0
00
00
00
573.814.
629.165.
557.483.
000
000
000
314.944.
335.195.
351.383.
000
000
000

41

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


Salaries, rent and fees
Goods and services
LA program
Interest payment
Capital expenditures
Payment of assets
Program 2 GCIS
Goods and services
Capital expenditures
Program 2B Basic geodetic operations
Goods and services

SELF-FUNDING
Programs 10 and 20
Salaries, rents and fees
Goods and services
Capital expenditures
Program 2B Basic geodetic operations
Goods and services
Capital expenditures
Program 21 NSDI

285.154.
000
29.790.0
00
41.000.0
00
20.000.0
00
4.500.00
0

310.195.
000
25.000.0
00
27.000.0
00

326.383.
000
25.000.0
00
54.000.0
00

318.383.
000
25.000.0
00
54.000.0
00

318.383.
000
25.000.0
00
54.000.0
00

27.000.0
00
246.150.
000
114.400.
000
131.750.
000
20.820.0
00
20.820.0
00

54.000.0
00
152.100.
000
33.300.0
00
118.800.
000

54.000.0
00
139.686.
000
49.476.0
00
90.210.0
00

54.000.0
00
108.686.
000
66.216.0
00
42.470.0
00

258.000.
000
179.400.
000
30.500.0
00
128.900.
000
20.000.0
00
15.500.0
00

259.000.
000
199.000.
000
37.500.0
00
138.500.
000
23.000.0
00

0
15.500.0
00
3.100.00

285.000.
000
224.200.
000
43.000.0
00
155.200.
000
26.000.0
00
19.800.0
00
19.800.0
00

277.522.
000
233.480.
000
42.980.0
00
164.500.
000
26.000.0
00
8.494.00
0
8.494.00
0

284.104.
000
242.780.
000
42.980.0
00
172.800.
000
27.000.0
00
6.324.00
0
6.324.00
0

0
0

0
21.000.0

0
0

0
0

0
209.470.
000
110.050.
000
99.420.0
00
8.400.00
0
8.400.00
0

42

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

Goods and services


Capital expenditures

0
3.100.00
0

00
0

0
21.000.0
00

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
Programs 10 and 20
Salaries, rents and fees
Basic salaries and fees
Benefits
Other costs
Goods and services
Travel costs and per diems
Utilities, heating, communication and transport
Small inventory, tools and other materials for renovations
Reparations and ongoing maintenance
Contractual services
Other ongoing costs

829.814.000
492.344.000
315.654.000
222.718.000
92.284.000
652.000
158.690.000
10.500.000
54.690.000
18.000.000
20.000.000
24.500.000
31.000.000

888.165.000
534.195.000
347.695.000
245.330.000
101.642.000
723.000
163.500.000
11.000.000
54.000.000
19.000.000
22.000.000
24.000.000
33.500.000

842.483.000
575.583.000
369.383.000
263.591.000
105.054.000
738.000
180.200.000
13.200.000
58.000.000
22.000.000
24.000.000
28.000.000
35.000.000

814.591.000
576.863.000
361.363.000
255.864.000
104.390.000
1.109.000
189.500.000
13.500.000
60.000.000
24.000.000
26.000.000
29.000.000
37.000.000

790.173.000
586.163.000
361.363.000
255.864.000
104.390.000
1.109.000
197.800.000
13.800.000
62.000.000
26.000.000
28.000.000
30.000.000
38.000.000

43

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


Capital expenditures
Construction objects/buildings
Purchasing furniture, equipment, vehicles and machines
Other non-financial assets (software etc.)
LA program
Goods and services
Interest payment
Capital expenditures
Payment of capital assets
Program 2A GCIS
Goods and services
Reparations and ongoing maintenance
Contractual services
Capital expenditures
Construction objects/buildings
Purchasing furniture, equipment, vehicles and machines
Other non-finance assets (software etc)
Program 2B Basic geodetic operations
Goods and services
Reparations and maintenance
Contractual services
Capital expenditures
Purchasing furniture, equipment, vehicles and machines
Other non-finance assets (software etc)
Program 21 NSDI
Goods and services
Contractual services
Capital expenditures
Purchasing furniture, equipment, vehicles and machines
Other non-finance assets (software etc)

18.000.000
10.000.000
8.000.000
0
41.000.000
16.500.000
20.000.000
4.500.000
0
269.470.000
110.050.000
17.050.000
93.000.000
159.420.000
0
38.350.000
121.070.000
23.900.000
8.400.000
0
8.400.000
15.500.000
12.500.000
3.000.000
3.100.000
3.100.000
3.100.000
0
0
0

23.000.000
3.000.000
20.000.000
0
27.000.000
0
0

26.000.000
5.000.000
21.000.000
0
54.000.000

26.000.000
5.000.000
21.000.000
0
54.000.000

27.000.000
5.000.000
22.000.000
0
54.000.000

27.000.000
306.150.000
114.400.000
21.400.000
93.000.000
191.750.000
2.500.000
71.900.000
117.350.000
20.820.000
20.820.000
3.220.000
17.600.000
0
0
0
0
0
0
0
0
0

54.000.000
172.100.000
33.300.000
33.300.000
0
138.800.000
0
34.000.000
104.800.000
19.800.000
19.800.000
3.200.000
16.600.000
0
0
0
21.000.000
0
0
21.000.000
10.000.000
11.000.000

54.000.000
175.234.000
49.476.000
30.256.000
19.220.000
125.758.000
0
10.540.000
115.218.000
8.494.000
8.494.000
3.410.000
5.084.000
0
0
0
0
0
0
0
0
0

54.000.000
143.686.000
66.216.000
46.996.000
19.220.000
77.470.000
0
24.800.000
52.670.000
6.324.000
6.324.000
6.200.000
124.000
0
0
0
0
0
0
0
0
0

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

44

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

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 nonrefundable 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.

45

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

Political risk

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

Level of
the risk

High

High

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

Risk of reduced reforms

Mid

Risk of inadequate ICT system

Low

Strategy for avoiding the risk

On-time negotiations and meetings with


government representatives for AREC issues

Communicating the AREC development


processes through adequate Public Relations

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

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

Strengthening the internal communication

Revision of the achieved by the General


Director

Careful planning of the activities and follow


up on the implementation

Strenghtening the procurement capacities


and defining adequate tendering procesures

46