Philippines: Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2

Sovereign Project | 44253-016

The Asian Development Bank is working with the Philippines to help local governments deliver better and more effective public service through improved revenue generation, stronger public financial systems and regulatory frameworks, and increased transparency and accountability.

Project Details

  • Project Officer
    Schuster, Stephen R.
    Southeast Asia Department
    Request for information
  • Country/Economy
  • Modality
    • Loan
  • Sector
    • Public sector management
Project Name Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2
Project Number 44253-016
Country / Economy Philippines
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3505-PHI: Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2
Ordinary capital resources US$ 250.00 million
Loan: Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2
Agence Francaise de Developpement US$ 150.00 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 expenditure and fiscal management

Gender Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy
Impact Governance and human development standards through more efficient service delivery improved
Project Outcome
Description of Outcome Efficient and transparent local government financial management systems developed.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Resource framework for fiscal sustainability developed

PFM system to assist efficient LGU service delivery strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) The loan amount of $250 million was fully disbursed on 11 August 2017. The loan is scheduled for closing on 30 December 2017.
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Category C
Involuntary Resettlement Category C
Indigenous Peoples Category C
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

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.

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 Finance
DOF Building
Bangko Sentral ng Pilipinas Complex
Roxas Blvd., Manila, Philippines
Concept Clearance 10 Jun 2013
Fact Finding 01 Dec 2015 to 04 Dec 2015
MRM 29 Jun 2016
Approval 13 Dec 2016
Last Review Mission -
Last PDS Update 29 Sep 2017

Loan 3505-PHI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2016 15 Dec 2016 22 Feb 2017 30 Jun 2017 30 Dec 2017 19 Oct 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 250.00 Cumulative Contract Awards
ADB 250.00 17 Jun 2022 250.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 250.00 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Philippines: Local Government Finance and Fiscal Decentralization Program Validations of Project Completion Reports Nov 2020

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.