The objective of this component is to ensure the introduction of appropriate business process

changes consistent with the Projects development objective of improved quality of services to
the population, and enhanced institutional capacity consistent with this goal.

1. Business Process Improvement:
Manually maintained, the land revenue records are complex and scattered in different books,
locations and registers. The long-term goal of the land administration modernization effort in
Punjab is to have all the information available and easily accessible as a single electronic
database where:

land-use right holders and land owners access their record easily
rights to land are recorded efficiently
rights to land are transferred and mutated smoothly
rights to land are verified in a definitive and conclusive manner
changes in land rights are recorded and known
scope for fraud is dramatically reduced
effective and easy monitoring of activity is in place.

The current Project represents the first phase in this program and will introduce important
changes in the existing business processes. The BPR study carried out during project preparation
reviewed existing procedures at two levels, with a view to the future changes. The first level is
concerned with the re-engineering of key existing procedures. The second is a broader level
looking at issues that would involve the integration of procedures and/or the development of new
procedures.

At the first level, two key changes have been identified:

i. Issuance of fards: Fards are to be issued solely at the Service Centres (or through
licensed vendors- this approach will be piloted). Issuance of fards by patwaris would
be discontinued.
ii. Mutations: Mutations will be initiated by application to the
Service Centres. On this basis, patwaris will be authorized to conduct necessary field
work. After going through existing clearance procedures ending with the approval of
the mutation by the Revenue Officer, the computer records would be updated

These changes will bring greater transparency to land records management and improve the
quality of services being provided to the population. It has been decided that a transition period
would be observed to allow the parties involved to adjust to these new procedures. From the
time that a Service Centre is authorized to begin operation of the digital data base, a maximum
transition period of one year will be allowed for continued issuance of fards by the patwaris.
Similarly a maximum transition period of one year will be observed with respect to mutations,
during which mutations may be initiated either by application to the Service Centres or directly
with the patwaris. During the transition period, the patwaris will be responsible for getting the
digital records updated for changes occurring in the paper-based system. The Board of Revenue
may opt for a shorter transition period but it will not exceed one year in any case. Prior to full
conversion to the automated system, the patwaris will be required to review and certify the
digital records.

During project implementation, further changes in business processes will be introduced. These
may deal with the process of verification of mutations, the practice of allowing oral mutations,
dispute resolution mechanisms, and the extent and nature of information collected by the land
records system and how it is managed.

Furthermore, the Project will be testing and proving on a pilot basis a direct linkage between the
land records system and the system of registration of deeds, both of which are under the
responsibility of the BOR. This will lay the basis for a Province-wide linkage of the two systems
during the second phase of the Land Records Improvement Program. This effort will be part of
the process of developing a unified database of land records in the rural and urban areas.

The Project will, in addition, be testing on a pilot basis the full integration of spatial data in
digital format linked with the text data in the automated land records system. In the initial phase
the pilot will include digitization of the existing spatial information contained in the maps held
by Patwaris and their linkage with the textual data in his registers. In the second phase this may
include development of a GIS for the entire province where geo-referenced maps are replaced
with the current maps. This area of work will be greatly expanded in the second phase of the
long-term program.

As part of the financial sustainability analysis for the Project, Public-Private Partnership (PPP)
models will be developed under the project to be ready for use before the Service Centre
Infrastructure is established. It is anticipated that the Service Centres will evolve over time to
provide a broader set of public services to the population which will both rationalize and
improve service delivery and enhance the financial sustainability of the Centres.

Under this sub-component, the Project will finance work on the question of business process
improvement, drawing upon experience with early implementation of the Project and additional
field work to assess successful change strategies. The Project will finance the preparation of
necessary legislative and regulatory amendments to allow the business process improvements to
be put into practice, including any legal or policy changes required with respect to operation of
the Service Centres, the use of PPPs as identified, the effective linkage of the land records and
deeds registration systems, and the legal use of digital data.
1.1: Legal Business Process Improvement/Changes
Success of project for computerization of land revenue record - issuance of digitized fard and
initiation of automated mutation - heavily hinges on the creation of an appropriate legal
framework. The legal framework will legitimize changes in the revenue record and provide
wider recognition among public and private institutions. Ordinary people will readily accept the
change once it gains legal recognition as a valid instrument for various transactions.
The Government of Punjab has already amended the Land Revenue Act, 1967 in order to align it
with changes introduced by computerization of records.
PMU BOR will get legal studies conducted to analyze legal/ business processes at various stages
of project. At project initiation stage studies will be conducted i) to suggest improvements in the
role of Patwari, Girdawar and Revenue Officers in mutations, ii) possibilities of linkages with
Registration of Deeds System, iii) processes of oral mutations, common assemblies and iv)
partitions. Comprehensive input will also be sought on v) revision of land records manual. In the
middle of the project, PMU BOR will seek consultancy services on issues such as vi) role of
Girdawari in the records system; vii) GIS and Spatial framework for LRMIS; viii) processes of
settlement to align land records to situation on the ground; review of Settlement Manual; ix)
processes of consolidation of holdings and x) systems of land records in urban areas. PMU BOR
will solicit consultancy advice xi) to explore possibilities of movement toward a title registration
system towards the end of the project.
2. Policy
2.1: Empirical Studies for Policy Formulation
Computerization Project seeks to re-engineer processes and re-structure roles and responsibilities
of revenue officials. It aims at delivering land records services through well- educated adequately
skilled and trained kiosk officials. It also seeks to target attitudes, mind sets and old work habits
of revenue officials across the board. It will also launch information and communication
campaign to help people cast of their social hesitation in interfacing with a modern computerized
system and obtaining services with ease and comfort.
Policy formulation on above mentioned areas will require a range of empirical studies. Variety of
qualitative and quantitative tools will be employed to collect data from across the province to
provide support to PMU officials including HR specialist, sociologist, economist and revenue
specialist. Data for empirical studies will be collected through consulting firm and will be
analyzed and used by PMU specialists in their areas of expertise in the process of developing
advice on policy formulation.
Empirical data will be collected at various stages of project. In the initial stages of project, base
line data will be collected on range of policy issues while middle of the project will provide
adequate lead time to seek feedback from different stakeholders and accordingly align policies
closely to ground realities. Towards end of the project, PMU BOR will be interested to collect
data from evaluation perspective so as to analyze policies in term of efficiency, economy and
effectiveness. Moreover, during the course of the project empirical data will be required to assist
the government in policy formulation. The subjects/titles of such empirical studies will be
decided as the need arises but tentatively empirical studies will be conducted on topics such as: i)
cost and time associated with getting a mutation recorded and a copy of record issued, ii)
improvements in the price of land on account of project interventions, iii) number of pending
cases as well as duration for settlement of cases in revenue courts and improvements on account
of the project interventions, iv) case study of one or more project locations in the districts where
service delivery starts first, v) nature of registration deeds and problems associated with deed
registration and vi) impacts on the economy of a district as a result of project interventions.
2.2: Study on Settlement Process
The process of settlement is critically linked to the land records. The process was originally
meant to provide fresh assessments of land revenue and for this purpose, fresh preparation of
new records including fresh maps. With abolition of land revenue the assessment of land revenue
is no longer required. The only purpose of the process now is preparation of new records
including maps. The capacities of the settlement staff and quality of their work have been
deteriorating rapidly over the last few decades. Moreover, a fresh assessment of the process is
required to determine if modern technology can be introduced in the process and how the process
can help in improving the quality of land records. This will be critically important in view of the
fact that the project aims to pilot the process of preparation of digital cadastral maps in a limited
jurisdiction with the objective of replicating it for the whole province and also later linking it
with the ownership and tenancy records in LRMIS.

2.3: Study on Consolidation Process
The process of consolidation will be studied to recommend improvements and to suggest
alternatives.
2.4: Policy Studies
Computerization project seeks a major shift in policy areas ranging from land record
maintenance, delivery and updating to re-arranging institutional and legal instruments. It seeks to
re-create land revenue administration which is likely to have far reaching impact on rural and
urban economy and may affect significantly lending instruments real estate and income
generation opportunities.
PMU BOR will commission range of studies in order to suggest policy changes in the Land
Records system. It will use these studies to advice and assist senior policy makers in the
provincial government. Policy studies will seek to deepen the impact of project intervention on
poverty alleviation and better income generating opportunities. The titles of these policy studies
will be finalized during the course of the project. Tentatively policy studies will be conducted on
issues like i) fee structure associated with land records and exploring options for cost recovery,
ii) restructuring of the Board of Revenue and its subordinate offices in the districts, iii)
institutional framework for development of a unified land titling system comprising urban as
well as rural properties, iv) taxation structure related to land record and transactions in the urban
and rural areas.
2.5: Dispute Resolution
PMU BOR will also formulate new policy and allied procedures on better dispute resolution
processes to provide adequate support to the new system. The Revenue Administration in Punjab
relies on the Land Revenue Act 1967 for Dispute Resolution at various levels of revenue
hierarchy. The Act, however, is a purely legal instrument and does not necessarily encourage
recourse to various other options mostly referred as Alternative Dispute Resolution (ADR). The
deficiency in the existing Dispute Resolution process can be addressed at this stage and a
comprehensive package mapping out various processes of Alternative Dispute Resolution could
become part of policy changes to be undertaken under the project.
PMU BOR will utilize the services of consulting firm/individual to analyze current dispute
resolution mechanisms, identify procedural and institutional deficiencies and suggest better
dispute resolution processes in the changed environment.


3. Institutional Capacity Enhancement
The Project will require a change in how institutions involved with the land records system
function. This will be tied to: (i) the changes in procedures associated with land records; (ii)
development of a business model for operation of the Service Centres; and (iii) elaboration of the
roles and relationships among the kanungo, tehsil, and district levels, as well as the working
relations between the Provincial and district levels.
3.1: Board of Revenue
Board of Revenue (BOR) is the apex body in all matters relating to the administration of land
and preparation of land records. It is the highest revenue court in the Province with appellate and
revisional jurisdiction against orders of subordinate revenue officers and revenue courts. All
revenue officers and revenue courts are subject to the general superintendence and control of the
Board of Revenue.

BOR is thus entrusted with a complex dual role. It ensures record maintenance through
subordinate offices while stepping in to resolve land disputes arising out of various processes
employed to maintain and update land records. These processes and procedures serve as dispute
resolution mechanisms within the system and their efficiency is critical to the trust of the
ultimate users in the system.

The consultancy will be geared to analyzing BOR processes and organizational structure to
identify redundancies, overlaps and institutional inefficiencies. It will also analyze current
organizational effectiveness and produce a set of recommendations aimed at recreating a lean,
customer- focused and forward looking organization.
3.1.1 Analysis of BOR Processes
Board of Revenue (BOR) is the apex body in all matters relating to the administration of land
and preparation of land records. It is the highest revenue court in the Province with appellate and
revisional jurisdiction against orders of subordinate revenue officers and revenue courts. All
revenue officers and revenue courts are subject to the general superintendence and control of the
Board of Revenue.

BOR is thus entrusted with a complex dual role. It ensures record maintenance through
subordinate offices while stepping in to resolve land disputes arising out of various processes
employed to maintain and update land records. These processes and procedures serve as dispute
resolution mechanisms within the system and their efficiency is critical to the trust of the
ultimate users in the system.

The consultancy will be geared to analyzing BOR processes and organizational structure to
identify redundancies, overlaps and institutional inefficiencies. It will also analyze current
organizational effectiveness and produce a set of recommendations aimed at recreating a lean,
customer- focused and forward looking organization.
3.1.2 Follow -up Capacity Improvements Actions in BOR
Capacity improvements actions in BOR will flow from reports of consulting firms in sub
component 3.1.1. PMU BOR will share these reports, its findings and recommendations with
senior management of BOR and its supervisory and lower staff through a series of workshops.
These reports will be discussed and debated in workshops to build broader support and
ownership for proposed changes among BOR employees.

BOR will implement the recommendations on BOR restructuring and improvement of
organizational processes in the Board. A plan of actions will be prepared by the Board of
Revenue and adequate resources will be made available through this sub-component of the
project for the implementation of this plan.

PMU BOR will chalk out action matrix to strengthen and reinforce newly implemented process
changes. It will build mechanisms based on regular and institutionalized process audit to ensure
continuity and help identify, build and generate resources for sustainability.
3.1.3 HR Policy in BOR & Change Management
The Computerization of Land Revenue Records entails significant changes .It will lead to re-
definition of roles and responsibilities of public servants in BOR and its subordinate offices in
the districts and will require new knowledge, skills and abilities for effective and efficient
performance.
PMU BOR will build on initial consultants report on process analysis and follow- up
improvement initiatives and formulate a comprehensive HR policy in areas such as new
management practices, recruitment and selection, career planning, training and development,
compensation and benefits and management- employees relationships. H.R policy will aim at
enhanced and efficient job performance on the one hand and personal and professional growth
for BOR employees on the other.

P.M.U BOR will involve both its in house resources and a competitively selected external
consulting firm for developing H.R policy in areas identified above.

3.2: Capacity Building
Vast international experience in similar projects shows resistance to change and institutional
impediments to pursue objectives such as the ones posed by this operation. It will be important to
ensure that personnel of the BOR and other institutions involved (e.g. District Government
officials) receive information/training about the design and objectives of the Project, and are
technically skilled to carry out their roles in its implementation. Information will be provided on
changed business processes and operation of the Service Centres, roles of the respective
administrative levels in project implementation, and for relevant staff, aspects of the ICT system.
An initial program of dissemination/training for these internal stakeholders will be offered in
each district as it comes into the Project i.e. before data entry operations in the district
commence. This will be done through holding project workshops through a consultant in
accordance with the Dissemination Strategy of the Project described in Component 3.

3.3: Public-Private Partnership
A study will be outsourced under this component to design a model of Public Private Partnership
which can be used to operate the service centres in an efficient, effective and secure manner.
The intention will be to develop a public-private partnership model in the early phases of roll out
(before the completion of infrastructure for the first Service Centres) to ensure reductions in
costs and improvements in efficiency of project interventions as well as service delivery, and to
explore various possibilities and modes of PPPs and identify profitable avenues for public
private sector partnerships.
Possible PPP models include the option where the private sector partner maintains the Service
Centres at the District and Tehsil level and the option where the private partner also provides
infrastructure inputs in terms of infrastructure.
The possible arrangements would be underpinned by contract arrangements where the private
partner would undertake to provide an agreed standard of service quality in lieu of a fixed fee per
transaction.
The budgeting in the sub-components of Components 2 and 3 has been done on the assumptions
of business requirements in each service centre but the study will also link these requirements to
the actual business needs while recommending the models to be used for service delivery
through public private partnership arrangements.
This analysis will also identify appropriate changes in the fee structure, staffing levels,
information flows, channeling of revenue, monitoring and management arrangements. The study
will also indicate any policy or regulatory issues that would need to be addressed to allow the
arrangements to work smoothly.
The results of the study will be considered by the government in consultation with the World
Bank for appropriate decisions.