Philippines: Support to Local Government Financing

Sovereign Project | 39516-022

Summary

The TA continues the important work under the umbrella of LGFBR Program. Strengthening of decentralization policy and enhancing the performance of LGUs to deliver services are core elements of the Government?s Medium Term Philippine Development Plan 2004-2010 and also represent one of the key pillars of the ADB Country Strategy and Program 2005-2007 and Country Operations Business Plan 2010-2012. The proposed assistance falls under the umbrella of the LGFBR program and is also linked to supporting achievement of important policy actions for the proposed LGFBR2 scheduled in 2012. The PATA follows on from several earlier TAs under the LGFBR series of programs with additional support warranted by the breadth and depth of the decentralization reform program being pursued.

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Project Name Support to Local Government Financing
Project Number 39516-022
Country Philippines
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7451-PHI: Support to Local Government Financing
Technical Assistance Special Fund US$ 700,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Decentralization - Public expenditure and fiscal management
Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy The TA continues the important work under the umbrella of LGFBR Program. Strengthening of decentralization policy and enhancing the performance of LGUs to deliver services are core elements of the Government?s Medium Term Philippine Development Plan 2004-2010 and also represent one of the key pillars of the ADB Country Strategy and Program 2005-2007 and Country Operations Business Plan 2010-2012. The proposed assistance falls under the umbrella of the LGFBR program and is also linked to supporting achievement of important policy actions for the proposed LGFBR2 scheduled in 2012. The PATA follows on from several earlier TAs under the LGFBR series of programs with additional support warranted by the breadth and depth of the decentralization reform program being pursued. It carries forward the work under the LGFBR 2 broad policy areas: (i) Fiscal Management, Planning, and Public Expenditure Management; (ii) LGU Performance Measurement and Service Delivery; (iii) Credit Financing; and (iv) Local Own-Source Revenues. Preparation of this TA is referenced in the RRP of LGFBR subprogram 2 which will be discussed by the ADB Board in November 2009.
Impact Increased efficiency and effectiveness of basic public services delivered by LGUs to their constituent communities.
Project Outcome
Description of Outcome LGUs avail of enhanced capacities to plan and budget for the general welfare of their constituent communities in a transparent and accountable way
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

The TA will have the following outputs:

(i) Component A. Enhancing Efficiency and Accountability in Financial Management Planning and Expenditure Management at the Local Level.

(ii) Component B. Improving Access to Public and Private Sources of Capital for Financing of Policy Reforms and Development Projects.

(iii) Component C. Reducing Dependency on Internal Revenue Allotment by Developing Buoyant Sources of Revenue at the Local Level.

Financial management, planning, and expenditure management at the LGU level is more efficient and accountable

LGU access to public and private sources of capital for financing of policy reforms and development projects is improved

Local government dependency on IRA is reduced

Status of Implementation Progress (Outputs, Activities, and Issues)

The TA is currently developing new modules for the DoF's electronic SRE system on fiscal capacity modeling, debt monitoring and debt capacity, and creditworthiness rating system.

Assistance was provided to the design of the Performance Challenge Fund and the forthcoming LOcal Government Enhancement Fund.

The TA Conducted a DBM Policy and Implementation Issues Workshop on Local Economic Enterprises (LEE), Localization of Salary Standardization Law III (SSL-3), and Competency Certification for Local Treasurers.

The TA assisted the drafting of report card system for Local Government Financial Performance Monitoring System, and the commencement of system design and programming for MDFO fund management and billing modules.

The TA has initiated consultations on the joint issuance on the Special Education Fund between DBM, DILG, and Dep ED, and on the preparation of the Local Taxpayer Database and Presumptive Business Income Tax Model.

Geographical Location Philippines
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

About 64 person-months fo national consulting inputs will be required. Seven consultants for 52 person-months, including the team leader, will be hired through a firm. Two consultants for 12 person-months - the local government unit (LGU) finance adviser and the adviser on debt management - will be hired on an individual basis.

1. Fiscal and Municipal Finance Adviser/Team Leader (12 person-months)

2. Expert on Local Budgeting (6 person-months)

3. Local Government Unit Finance Adviser (6 person months, individual consultant)

4. Adviser on Debt Management (6 person-months, individual consultant)

5. Capacity Building Expert (12 person-months)

6. Systems Analyst (10 person-months)

7. Database Programmers (2 programmers, 6 person-months each)

Responsible ADB Officer Juan Gomez Reino
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Bureau of Local Government Finance Dr. Jose Arnold TanMinistry of Finance
7th Floor, Palacio del Gobernador Bldg.
Intramuros, Manila
Department of Budget and ManagementRosalia de Leonrdeleon@dof.gov.phEDPC Building, BSP Complex, Roxas Boulevard, Manila
Timetable
Concept Clearance 14 Oct 2009
Fact Finding 01 Jun 2009 to 16 Jun 2009
MRM -
Approval 15 Dec 2009
Last Review Mission -
PDS Creation Date 14 Jan 2010
Last PDS Update 25 May 2011

TA 7451-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2009 29 Jan 2010 29 Jan 2010 31 Oct 2011 30 Sep 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 300,000.00 0.00 0.00 0.00 1,000,000.00 15 Dec 2009 625,115.75
Title Document Type Document Date
Local Government Financing and Budget Reform Consultants' Reports May 2010
Support to Local Government Financing Technical Assistance Reports Dec 2009
Support to Local Government Financing Design and Monitoring Frameworks Nov 2009

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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