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Manila, March 30, 2004—
The International Finance Corporation, the private sector arm of the World Bank Group, signed an agreement today to provide a $22 million, 8-year loan to Land Registration Systems, known as LARES, to computerize and connect the 160 offices of the Land Registration Authority. LRA is an agency of the Philippine Department of Justice that is charged with preserving the integrity of the land registration process and protecting the sanctity of land titles. The project also includes a $2.75 million equity investment in LARES.
“For a well functioning system of property rights to develop, the ownership of land has to be formalized through an effective land titling and registration system,” IFC Infrastructure Director Francisco Toureilles commented at the signing in Manila. “By providing a secure record of land ownership and a more efficient retrieval and record management system, this project will facilitate the use of titled land as collateral for borrowing by individuals.”
The project covers the first three phases of a five phase, 10-year build-own-operate concession. It will allow LRA to maintain online information on land titles that are current, complete, and accurate. The project will also maintain the security and integrity of records, implement more reliable land registration procedures, and provide timely responses to customers through user-friendly electronic information access to the LRA central office and all deed registry offices.
“This project will demonstrate that the private sector can support government efforts to provide more efficient and secure public services,” said IFC Philippines Country Manager Vipul Bhagat. In addition to the modernization of government services and improved access to accurate records for the public, this system allows individuals to establish formal ownership of property. Following implementation, small and medium enterprises should see improved access to financing due to improved collateral based on clear property rights. The project also sets the stage for a more sophisticated mortgage market to develop, which can play a critical role in the overall development of financial markets.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.7 billion for its own account and $6.6 billion held for participants in loan syndications. For more information go to
www.ifc.org
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