44253-012: Local Government Finance and Fiscal Decentralization Reform Program | Asian Development Bank

Philippines: Local Government Finance and Fiscal Decentralization Reform Program

Sovereign (Public) Project | 44253-012 Status: Active

The proposed Local Government Finance and Fiscal Decentralization Reform Program (the Program) aims to improve service delivery in the Philippines by increasing the efficiency and transparency of local governance and financial management systems.

Project Details

Project Officer
Schuster, Stephen R. Southeast Asia Department Request for information
Country
  • Philippines
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Local Government Finance and Fiscal Decentralization Reform Program
Project Number 44253-012
Country Philippines
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8390-PHI: Local Government Finance and Fiscal Decentralization Reform Program
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Public sector management / Decentralization - Public administration

Gender Equity and Mainstreaming Some gender elements
Description The proposed Local Government Finance and Fiscal Decentralization Reform Program (the Program) aims to improve service delivery in the Philippines by increasing the efficiency and transparency of local governance and financial management systems.
Project Rationale and Linkage to Country/Regional Strategy

The related Local Government Finance and Fiscal Decentralization Reform Program (the Program) improved service delivery in the Philippines by increasing the efficiency and transparency of local governance and financial management systems. The program stressed the reform linkages between local economic development and transparent and participatory governance. The programmatic approach was utilized to provide needed flexibility to translate structural reforms into measurable policy actions.

This project preparatory technical assistance (TA) provided the required technical and logistical resources to assist the government-led review of the LGC. Considering the interconnected nature of the main elements of the system of intergovernmental fiscal relations, the LGC review included assessments and policy recommendations with respect to the structure of the system, including expenditure and revenue assignments, the system of fiscal transfers and LGU borrowing powers. Specifically, the TA promoted fiscal sustainability by strengthening local revenue frameworks. It funded (i) an assessment of the impact of national tax incentives on local government revenues and economic growth; and (ii) the development of a financing framework for LGU alliances that assists joint service delivery. The TA also contributed to the strengthening of local public financial management systems by assisting the development of financial sustainability procedures for LGUs. Lastly, the TA assisted with the implementation of good local governance procedures by providing (i) assistance for re-engineering the local government performance measurement system to align it with the government _seals of good governance_ system which improved the reliability of data collected from LGUs, as well as the analytical value of the reports produced through the system; and (ii) support to capacity development for comprehensive development planning, and in particular harmonization of the different planning processes linked to national and local programs (e.g., the bottom-up budget initiative and comprehensive land use plans).

Impact tbd
Project Outcome
Description of Outcome tbd
Progress Toward Outcome
Implementation Progress
Description of Project Outputs tbd
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

TA contracted amount as of 27 Sep 2017 is $845,198 (84% of the total TA amount) and disbursed amount is $662,519 (78% of the total contracted amount). The review of the Local Government Code under this project has included extensive consultations with civil society organizations, business sector, academe, leagues of local governments and many other stakeholders. The three rounds of regional consultations held in the last quarter of 2014 (in Cebu, Davao, and Manila) were attended by around 400 LGU chief executives, local council members, and other local officials. Further dissemination of the results of the review is expected in 2015, in particular to the Congress committess and other relevant stakeholders. The private sector stakeholders who were consulted as part of the current effort to review the LGC include representatives from the Philippine Chamber of Commerce and Industry, Filipino Chinese Chamber of Commerce, Joint Foreign Chamber of Commerce of the Philippines, Makati Business Club, National Competitiveness Council, Bankers Association of the Philippines, Tax Management Association of the Philippines, and the BPO sector.

In addition, the Local Governance Performance Management Systems (LGPMS) has been upgraded. The primary objective of this upgrade is to produce all the performance information required by the Seal of Good Local Governance (SGLG) as basis for granting the annual award to best performing local government units (LGUs) throughout the country. Workshops were conducted to raise awareness and to increase the level of understanding of the DILG-BLGS staff on best practices, or essential elements, of an effective LGPMS. Additional workshops were conducted to confirm the validity of the assessment findings of the review of the proposed enhanced LGPMS framework and performance measures.

The TA closing date was extended to 30 December 2017 to provide time to complete the ongoing activities under the TA. First, a firm has been engaged to develop an e-learning system to disseminate the harmonized planning and budgeting systems to the local government units. In addition, a nationwide consultation for the review of the local government code is scheduled in October 2017. Findings of this national consultation will then be presented to the concerned government office as well as congress.

Business Opportunities
Consulting Services TA will be provided through a mix of individual consultants and a firm selected through fixed-budget selection, indicatively including 11 person-months of international consultant inputs, and 42 person-months of national consultant inputs.
Responsible ADB Officer Schuster, Stephen R.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Department of Interior and Local Government
4th Floor, A. Francisco Gold Condominium
II, EDSA cor. Mapagmahal St.,
Diliman, Quezon City, Philippines
Timetable
Concept Clearance 10 Jun 2013
Fact Finding 18 Apr 2013 to 21 May 2013
MRM -
Approval 10 Jun 2013
Last Review Mission -
Last PDS Update 29 Sep 2017

TA 8390-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jun 2013 17 Dec 2013 17 Dec 2013 30 Jun 2015 30 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 10 Jun 2013 734,840.62

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Junior Consultant (Project Assistant) Individual - Consulting Closed 19 Jul 2017 25 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.