The Improved Business Model for DENR Titling: Partnership with Local Governments

Significant things happened with the way DENR issued titles for public lands over the last two years.

First, Secretary Paje issued Department Administrative Order 2011-06. This DAO authorized DENR Regional Directors all over the Philippines to establish partnerships with local governments for public land titling. In this partnership a Cadastral Council would be established to set titling priorities and tackle titling issues. DAO 2011-16 also allowed REDs to deputize local government officials and employees and officials as DPLIs. LGU partners were asked to organize Land Information Offices or Units to support titling activities.

This policy was supported by DILG Memorandum Circular 117- 2011 (signed by then-Secretary Jesse Robredo) which encouraged local chief executives to comply with the provisions of DAO 2011-06.

At least 105 partnerships have been established between DENR and local governments.  These partnerships were promoted by a USAID supported project by The Asia Foundation and the Foundation for Economic Freedom, of which the author was a part. DENR and LGU partners were oriented on the policies and mechanics of public land titling and trained for systematic adjudication.

Partnership dynamics varied from one place to another. In the Municipality of Cordova in Cebu Province, the partners adjudicated six Barangays within the year (2011) and helped to distribute titles. Their Cadastral Council tackled other land administration issues, such as foreshore leases (Cordova is in Mactan Island, a prime tourism destination). In Surigao del Sur the Provincial and Municipal Governments covered the cost of surveys, subject to repayment by beneficiaries once titles are released.  In Region X, DENR is helping LGUs to develop multi-purpose cadastres as part of their engagement for titling.

DENR also stepped up efforts to conduct surveys in many parts of the country.

All these changes result in what can be perceived as the new DENR “Business Model” for titling. The key components of this new Business Model are centered around DENR’s partnership with LGUs.

DENR has the same Customers, but this time there is a focus on Residents or occupants of public lands used for residential purposes.

In addition to the convenience of dealing with DPLIs for personalized service, partnership with LGUs allows DENR to add to their Value Proposition both Convenience and Accessibility. This is now possible because applicants don’t have to go as far as the CENRO for transactions – they can also go to the Land Information Offices being operated by LGUs. The LIOs are often in the Municipal or City Assessor’s Office.

The Relationship between DENR and applicants is still managed by the DENR DPLIs, but now these are now augmented by LGU DPLIs (deputized by the RED). Likewise the Delivery Mechanism of “DENR-owned stores” which are the CENROs is augmented by the “franchise outlets” which are the LGU Land Information Units/ Assessor’s Offices.

The Key Partners are still the LGUs, surveying companies, ROD/LRA. However, in addition to providing data needed for adjudication, the LGU now also provides personnel and resources – and in some cases funds for survey work.

Thus the Key Resources for titling are augmented by personnel, survey equipment, funding from LGUs. Most important, LGUs contribute social capital to titling activities – the goodwill they have developed over time helps during community development and adjudication.

The most significant changes are with the Key Activities. Instead of sporadic adjudication, DENR is now able to pursue systematic adjudication because of the involvement of LGUs.  \

The Income Stream remains the same – application fee, documentary stamps, etc. The Cost Structure is still cost-driven (minimizing costs to stay within the budget). DENR still has to pay the salaries of all its personnel involved in titling services, pay for transportation and field operation costs, and office overhead. The big difference is that now LGUs can shoulder costs of field operations. They can also cover the costs of additional personnel and resources.

This blog and two other preceding posts seeks to show that when a Development Entrepreneur seeks to improve the capacity of an institution he can use the OODA and Business Model concepts to do so. First, he can Observe the way the institution works by describing its current Business Model. Then he can Orient by analyzing areas for improvement in the existing Business Model (this leads him to formulate several Theories of Change). He can then Decide on one or several interventions, and Act on them. The results of his interventions can change the institution and result in a new, hopefully improved Business Model (and If not, he can always try another approach).