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.
|Project Name||Support to Local Government Financing|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|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|
|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.|
|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|
|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.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
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||Gomez Reino, Juan L.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
Bureau of Local Government Finance
Dr. Jose Arnold Tan
Ministry of Finance
7th Floor, Palacio del Gobernador Bldg.
Intramuros, Manila Department of Budget and Management
Rosalia de Leon
EDPC Building, BSP Complex, Roxas Boulevard, Manila
|Concept Clearance||14 Oct 2009|
|Fact Finding||01 Jun 2009 to 16 Jun 2009|
|Approval||15 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||14 Jan 2010|
|Last PDS Update||25 May 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|15 Dec 2009||29 Jan 2010||29 Jan 2010||31 Oct 2011||30 Sep 2012||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|700,000.00||0.00||300,000.00||0.00||0.00||0.00||1,000,000.00||15 Dec 2009||625,115.75|
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