IL&FS Technologies Limited (ITL) has been spearheading the development of the Land Titling Computerization Project (LTCP) in the Philippines after acquiring a majority stake in Land Registration Systems Inc (LARES). The project has been awarded by the Land Registration Authority of the Philippine government under a Build, Own and Operate framework.
Innovations and Impact
- Under the LTCP, LARES implemented countrywide digitization of records to secure land ownership and to restore the integrity of the Philippines' land titling and deeds registration system, covering LRA’s 164 Registries of Deeds nationwide. The LTCP involves development of a customized application system, supply of IT products and services, training of end users, conversion of documents into digital form, nationwide network interconnection and construction of IT-enabled government offices.
- In FY 2013, IL&FS Global Financial Services Pte Limited (IGFSL) refinanced the project debt by arranging PHP 6567 (~USD 139 mn) from Phillippine Banks. In FY 16, IGFSL undertook a second round of refinancing which led to reduction of high cost sponsor debt, reduction in rate in interest, release of liquidity to the parent entity and increase in residual tenor. An overall cost savings of upto 4% has thus been achieved.
- The entire funding was done without recourse to the parent company, ITL. Banks had recourse only to the level of the local entity in Philippines and reliance was made on project cash flows only for repayment of debt.
- The project is a milestone project for the Government of Philippines in the e-governance space and has given IL&FS management significant experience in an overseas market.