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WORKING GROUP ON DE WORKING GROUP ON DE CE CE NT NT RAL RAL IZAT IZAT ION AND L ION AND L OCAL OCAL GOVE RNME NT GOVE RNME NT DE VE L OPME NT PART NE R SUPPORT DE VE L OPME NT PART NE R SUPPORT F OR DE CE NT


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SLIDE 1

DE VE L OPME NT PART NE R SUPPORT F OR DE CE NT RAL IZAT ION & L OCAL GOVE RNME NT PROGRAM DE VE L OPME NT PART NE R SUPPORT F OR DE CE NT RAL IZAT ION & L OCAL GOVE RNME NT PROGRAM

  • Ms. R. Muka mi Ka riuki

Co- L e a d Conve nor

Presentatio n at the Dialo gue o f the Wo rking Gro up o n Dec entralizatio n and L

  • c al

Go vernment with the Central Philippines Go verno rs Oc to be r 19, 2006, Parklane I nternatio nal Ho te l, Ce bu City

WORKING GROUP ON DE CE NT RAL IZAT ION AND L OCAL WORKING GROUP ON DE CE NT RAL IZAT ION AND L OCAL GOVE RNME NT GOVE RNME NT

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SLIDE 2
  • Ba c kg round a nd ra tiona le

Ba c kg round a nd ra tiona le

  • Donor Assista nc e (DA) to L

GUs Donor Assista nc e (DA) to L GUs

  • Na ture a nd forma t of DA Support

Na ture a nd forma t of DA Support

  • Ove rvie w of Sa mple DA supporte d

Ove rvie w of Sa mple DA supporte d Ac tivitie s Ac tivitie s

  • Spe c ific DA supporte d Prog ra ms for L

GUs Spe c ific DA supporte d Prog ra ms for L GUs

Outline

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SLIDE 3
  • Ha rmoniza tion of de ve lopme nt a g e nc y support

Ha rmoniza tion of de ve lopme nt a g e nc y support for De c e ntra liza tion a nd L

  • c a l Gove rnme nt

for De c e ntra liza tion a nd L

  • c a l Gove rnme nt

Prog ra m Prog ra m

  • E

nsure links be twe e n na tiona l, provinc ia l loc a l E nsure links be twe e n na tiona l, provinc ia l loc a l le ve l support a nd c onsiste nc y be twe e n le ve l support a nd c onsiste nc y be twe e n se c tora l se c tora l a nd multi a nd multi-

  • se c tora l

se c tora l prog ra ms prog ra ms

  • PDF

forum on DL G a me c ha nism for re g ula r PDF forum on DL G a me c ha nism for re g ula r disc ussion a nd fe e dba c k be twe e n na tiona l disc ussion a nd fe e dba c k be twe e n na tiona l g ove rnme nt, de ve lopme nt a g e nc ie s, L GU g ove rnme nt, de ve lopme nt a g e nc ie s, L GU le a g ue s le a g ue s

Ba c kg round

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SLIDE 4
  • Role of Provinc e s in

Role of Provinc e s in

  • pla nning a nd c onsolida ting inte r

pla nning a nd c onsolida ting inte r-

  • L

GU inve stme nt L GU inve stme nt pla ns pla ns -

  • within a nd a c ross provinc e s

within a nd a c ross provinc e s

  • supporting L

GUs tha t do not ha ve a de qua te supporting L GUs tha t do not ha ve a de qua te c a pa c ity in prioritiza tion, de sig n a nd c a pa c ity in prioritiza tion, de sig n a nd imple me nta tion pha se s imple me nta tion pha se s

  • e sta blishing joint fina nc ing a rra ng e me nts for

e sta blishing joint fina nc ing a rra ng e me nts for “ “c ommon infra struc ture a nd se rvic e s c ommon infra struc ture a nd se rvic e s” ” – – inc e ntive s for loc a l re ve nue g e ne ra tion, pooling inc e ntive s for loc a l re ve nue g e ne ra tion, pooling a nd c onsolida tion (e .g . bonds, sub a nd c onsolida tion (e .g . bonds, sub -

  • sove re ig n

sove re ig n loa ns) loa ns)

Issue s

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SLIDE 5
  • DA support provide d throug h a ra ng e of

DA support provide d throug h a ra ng e of prog ra ms a nd proje c ts: prog ra ms a nd proje c ts:

  • na tiona l, provinc ia l, loc a l le ve l, c ivil soc ie ty

na tiona l, provinc ia l, loc a l le ve l, c ivil soc ie ty

  • budg e t support, se c tor a g e nc ie s,

budg e t support, se c tor a g e nc ie s, GF Is GF Is, ,

  • sc ope na tiona l, site spe c ific ,

sc ope na tiona l, site spe c ific ,

  • loa ns (ma inly

loa ns (ma inly c onc e ssiona l c onc e ssiona l fina nc ing ) a nd g ra nts fina nc ing ) a nd g ra nts

  • Assista nc e to L

GU prog ra ms provide d by Assista nc e to L GU prog ra ms provide d by va rious donors, e .g . ADB, WB, GT Z, CIDA, va rious donors, e .g . ADB, WB, GT Z, CIDA, AusAID AusAID a nd UN Ag e nc ie s a nd UN Ag e nc ie s

  • inc re a sing ly de sig ne d to support L

G a g e nda inc re a sing ly de sig ne d to support L G a g e nda

Alig nme nt of DA Support with the Gove rnme nt Re form Alig nme nt of DA Support with the Gove rnme nt Re form Prog ra m on De c e ntra liza tion Prog ra m on De c e ntra liza tion

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SLIDE 6
  • L

GPMS a nd L GF PMS tools for improving L GPMS a nd L GF PMS tools for improving pe rforma nc e monitoring Initia l work on pe rforma nc e monitoring Initia l work on pe rforma nc e pe rforma nc e -

  • ba se d g ra nts

ba se d g ra nts

  • Support to L

GUGC for g ua ra nte e s to L GUs for Support to L GUGC for g ua ra nte e s to L GUs for Bonds Bonds

  • Ne w initia tive to e sta blish Re volving F

und Ne w initia tive to e sta blish Re volving F und

  • E

sta blishme nt of sub E sta blishme nt of sub -

  • sove re ig n fina nc ing fa c ilitie s

sove re ig n fina nc ing fa c ilitie s

  • IF

C IF C – – Munic ipa l F und Munic ipa l F und

  • ADB fa c ility

ADB fa c ility – – polic y unde r de ve lopme nt polic y unde r de ve lopme nt

  • Ha rmoniza tion of pla nning a nd budg e t

Ha rmoniza tion of pla nning a nd budg e t fra me works fra me works

  • Provinc ia l de ve lopme nt stra te g ie s?

Provinc ia l de ve lopme nt stra te g ie s? Sa mple of DA Ac tivitie s in Support of Polic y Re form Ag e nda Ide ntifie d by L GUs a nd the Na tiona l Gove rnme nt

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SLIDE 7

ODA GRANTS FOR LGUS IN SUPPORT OF DLG AGE NDA

L

  • c a l Gove rna nc e &

F isc a l Ma na g e me nt Proje c t (ADB 4778) L

  • c a l Gove rnme nt

F ina nc e & Budg e t Re form Proje c t (ADB 4556) Prog ra m to Support De c e ntra liza tion (GT Z) L

  • c a l Gove rna nc e

De ve lopme nt Prog ra m (AusAID) Re c e ntly Approve d L GU F isc a l Ma na g e me nt (PE GR- AusAID) Propose d E c onomic Polic y & Re form Advoc a c y (USAID) On- Going L

  • c a l Gove rna nc e

Support Prog ra m for L

  • c a l E

c onomic De ve lopme nt (CIDA)

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SLIDE 8
  • Asia n De ve lopme nt Ba nk

Asia n De ve lopme nt Ba nk

  • Austra lia n Ag e nc y for Inte rna tiona l

Austra lia n Ag e nc y for Inte rna tiona l De ve lopme nt De ve lopme nt

  • Ca na dia n Inte rna tiona l De ve lopme nt

Ca na dia n Inte rna tiona l De ve lopme nt Ag e nc y Ag e nc y

  • Ge rma n De ve lopme nt Coope ra tion

Ge rma n De ve lopme nt Coope ra tion

  • Inte rna tiona l F

ina nc e Corpora tion Inte rna tiona l F ina nc e Corpora tion

  • Unite d Na tions

Unite d Na tions

  • World Ba nk

World Ba nk

ODA Prog ra ms/ Proje c ts

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SLIDE 9

Asian Development Asian Development Asian Development Asian Development Bank (ADB) Bank (ADB) Bank (ADB) Bank (ADB)

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SLIDE 10

ADB Sector Reform Areas for 2005- 2007

Power Local Governance and Financial

Development

Local Government Financing and Budget

Reform Program (proposed for 2007)

Financial Markets and Intermediation Microfinance Development Governance and Judicial System

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SLIDE 11

Selected LG Programs/Projects

Agrarian Reform Communities (central Philippines) Southern Philippine Irrigation Sector (Mindanao) Infrastructure for Rural Productivity Enhancement

Sector (central Philippines)

Secondary Education Development and Improvement

(central Philippines)

Mindanao Basic Urban Services Sector (Mindanao) Development of Poor Urban Communities (Mindanao) Health Sector Development Program (central

Philippines)

Local Government Finance and Budget Reform Local Governance and Fiscal Management

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SLIDE 12

Australian Agency for Australian Agency for Australian Agency for Australian Agency for International Development International Development International Development International Development ( (AusAID AusAID AusAID AusAID) )

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SLIDE 13
  • Current Country Program Strategy focus

– Reducing impediments to broad-based growth through stronger economic governance – Improve security and stability in the Philippines – Improve the living standards of the rural poor in southern Philippines

  • Emerging directions for the new Country Program

Strategy – Improve Economic Growth – Improve Basic Education – Enhance Human Security and National Stability

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SLIDE 14

Local Governance Development Program Phase I Regions VI (MIDC) and VII (Bohol) Philippines-Australia Human Resource Development Facility (PAHRDF) Regions VII (Bohol), VIII (N Samar), X, Caraga Philippines Australia Community Assistance Program (PACAP) Regions VII (Bohol), VIII (N Samar), X, Caraga Nationwide for NGOs Land Administration and Management Project Phase 2 (LAMP 2) Regions V (Naga City), VI (Iloilo City), VII (Bohol), VIII (Leyte) Philippines-Australia Local Sustainability Program Phase II (PALS 2) Region X Malaria Control and Prevention Project Caraga Philippines-Australia Technical Support to Agrarian Reform and Rural Development Regions VI, VII, VIII, 10, Caraga

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SLIDE 15

Canadian International Canadian International Canadian International Canadian International Development Agency Development Agency Development Agency Development Agency (CIDA) (CIDA) (CIDA) (CIDA)

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SLIDE 16

Priorities

  • Efficient, responsive, transparent and

accountable governance, at all levels

  • E-government at national level
  • LGUs that serve and involve their citizens
  • Sustainable small and medium enterprises

that create decent jobs

  • Business sector organizations
  • (coming) LGUs organizing for local economic

development

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SLIDE 17

PROGRAM/ PROJECT REGIONS Local Governance Support Program in the Autonomous Region of Muslim Mindanao ARMM Building Unity and Integrating Local Efforts towards Democratic Development Private Enterprise Accelerated Resource Linkages (PEARL) Phase II NCR, VI, ARMM Canada Fund for Local Initiatives Nationwide Business Advisory Project, Phase II Visayas, Mindanao Promoting Rural Industries and Market Enhancement Program (PRIME) Nationwide Promoting Youth Employment Nationwide UNICEF-Child Friendly Movement Project Visayas

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SLIDE 18

German Development German Development German Development German Development Cooperation (GTZ) Cooperation (GTZ) Cooperation (GTZ) Cooperation (GTZ)

slide-19
SLIDE 19

Development Cooperation

Philippines - Germany

  • 1st Component - Political Decentralization and Good

Governance – Decentralization – Federalism – Unitarian – Accountability & Transparency & Responsibility

  • 2nd Component – Fiscal Decentralization and Fiscal

Management – Revenue Generation and Utilization – New Revenues and Co-financing

  • 3rd Component – Institutional Decentralization and Service

Delivery – Inter-LGU Cooperation – Alliances – Organizational Set-up for Service Delivery

Decentralization Program

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SLIDE 20

Maasin Maasin

Dumag Dumaguete ete Si Siqu quijor Bacolod Bacolod Il Iloil

  • ilo Ci

City ty Cebu Cebu Tagb Tagbilar ilaran Ba Banta ntayan an Ca Cadiz C City ty Mas Masbat ate Ta Tacl cloban an Bor Boronga ngan

Region VII Region VI Region V Region VIII

Sector: Decentralization

Ba Bayba ybay Ka Kalibo libo

Networking of German Development Cooperation in the Visayas Region

Ba Bais Biliran

1 GTZ

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SLIDE 21

PROGRAM/ PROJECT REGIONS GTZ Support to the Philippine Health Sector Reform and Population Management Small and Medium Enterprise Development for Sustainable Employment Program Visayas Strengthening Decentralized Development Planning Structures in the Visayas Region VI, VII, VIII Integrated Visayan Sea Coastal Resources and Fisheries Management Program V, VI, VII Leyte Island Program VIII (Leyte, Tacloban) Income Generating Activities for Low Income Strata/Groups in Eastern Samar/Leyte VIII Credit Line for Sustainable Solid Waste Management Nationwide Credit Line Micro, SMEs, and LGUs Nationwide LGU Investment Program Nationwide

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SLIDE 22

International Finance International Finance International Finance International Finance Corporation (IFC) Corporation (IFC) Corporation (IFC) Corporation (IFC)

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SLIDE 23

www.ifc.org/municipalfund

The Municipal Fund

The Municipal Fund, a joint World Bank/IFC initiative seeks to help fill this gap by structuring and investing in sub-sovereign projects in emerging markets

I FC credit assessment skills I FC market expertise WB public policy experience WB capacity building experience

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SLIDE 24

www.ifc.org/municipalfund

Scope of Municipal Fund in the Philippines

Eligible Borrowers:

  • Provincial and City LGUs
  • Utility Districts and other State-owned enterprises

Potential borrowers will be assessed on their creditworthiness, which would include review of financial, institutional, legal, environmental and economic aspects. Eligible Projects:

  • Water and wastewater, transportation, solid waste, social infrastructure such as

health and education, commercial enterprises and other essential public services.

  • Revenue and non-revenue generating projects both acceptable
  • Minimum project investment amount at least Php 250 million,

althoughpackaging of multiple projects for single loan is possible

  • Investment period of projects-> 1-2 years; Application to approval < 6 months.
  • LGU contribution to project costs 20-40%, depending on project and debt

capacity

  • Projects must meet IFC Environmental and Social Safeguard Policies
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SLIDE 25

United Nations United Nations United Nations United Nations (UN) (UN) (UN) (UN)

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SLIDE 26

6th GOP-UNICEF Country Program of Cooperation for Children (CPC 6) 2005-2009

To reduce disparities in children’s right and sustain past gains within the context of the Convention on the Rights of the Child and nationwide Child Friendly Movement Programs and Priority Areas:

  • 1. Assistance to GOP in policy formulation, institutional development,

capacity building and service delivery for children and women

  • 2. Integrated provision of health, nutrition, education, early childhood care

and development, HIV/AIDS prevention and social protection services

– 19 provinces and 5 cities (including Capiz, Antique, Oriental Negros, Guimaras, Cebu city, and Northern and Eastern Samar in the Visayas)

  • 3. Formulation of local development and investment plans, local children’s

codes and local state of children reports

– in all 79 provinces and 117 cities

  • 4. Strengthening of regional sub-committees and local councils for welfare
  • f children

– including regions 6, 7 and 8

  • 5. Emergency assistance to disaster areas

– e.g. Southern Leyte

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SLIDE 27

PROGRAM/ PROJECT REGIONS Biodiversity Conservation and Protection IV-A, V, X, XI, CARAGA Coastal Resource Management IV-B, IV-B, V, VI

(Antique), X, XI, XII,

ARMM Sibuyan Eco-Tourism Development Program IV-B Micro-Hydropower Development & Non- Conventional Source of Energy CAR, V, VII ( Bohol)

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SLIDE 28

World Bank World Bank World Bank World Bank (WB) (WB) (WB) (WB)

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SLIDE 29

Modality Modality Lending Lending TA TA Other Partners Other Partners

Through Through NGAs NGAs: :

a) a)

DOF (MDFO) DOF (MDFO) LOGOFIND (on LOGOFIND (on-

  • going)

going) Municipal infra, Municipal infra, modernization of tax modernization of tax systems systems Capacity Building Capacity Building ( (“ “mandatory mandatory” ” and and “ “demand demand-

  • driven

driven” ” courses courses WBI WBI NCC NCC

b) b)

DOF/DBM (MDFO) DOF/DBM (MDFO) Performance Performance-

  • based

based Grant System Grant System (pipeline) (pipeline) Financing to provide Financing to provide incentives for governance incentives for governance improvement in areas improvement in areas (local revenue (local revenue mobilization, fiduciary mobilization, fiduciary control, planning, control, planning, budgeting, public budgeting, public participation) participation) Possibly support to Possibly support to upgrade LGU upgrade LGU governance capacity governance capacity Through Leagues: Through Leagues:

a) a)

League of Cities League of Cities CDS (planning, CDS (planning, investment programming, investment programming, project preparation) project preparation) WBI, NEDA, ADB, WBI, NEDA, ADB, JICA, UN Habitat JICA, UN Habitat

b) b)

League of League of Provinces Provinces TBD TBD – – to respond to to respond to range of needs ( range of needs (prov prov planning, prep of planning, prep of investments for social, investments for social, rural dev, etc.) rural dev, etc.) NEDA NEDA

c) c)

League of League of Municipalities Municipalities Strengthening of Mayors Strengthening of Mayors Development Center (DL Development Center (DL Center and Course Center and Course Devt Devt) ) MDFO and WBI MDFO and WBI

Assistance to Local Governments

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SLIDE 30

Modality Modality Lending Lending TA TA Other Other Partners Partners

Through Through GFIs GFIs

a) a)

Land Bank of Land Bank of the Philippines the Philippines (SSLDIP) (SSLDIP) infrastructure projects infrastructure projects Directly to LGUs Directly to LGUs (with (with TFs TFs) )

a) a)

Slum upgrading Slum upgrading (JSDF) (JSDF)

b) b)

Site Development Site Development (Japan CTF (Japan CTF -

  • QC)

QC)

c) c)

NMT (Bikeways in NMT (Bikeways in Marikina Marikina – – GEF) GEF) PHILSSA, NGOs PHILSSA, NGOs

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SLIDE 31

PROGRAM/ PROJECT REGIONS Second Agrarian Reform Communities Development Project (ARCDP 2) I, II, IV-B, V, VIII, X, XI, XIII Community-Based Resource Management Project V, VII, VIII, CARAGA Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services All except I, II, III, IV-A, ARMM LGU Urban Water and Sanitation Project 2 II, X Local Government Finance and Development Project Nationwide Water Districts Development Project Nationwide ARMM Social Fund for Peace and Development ARMM Support for Strategic Local Development & Investment Project Local Performance Grants Municipal Fund (w/ International Finance Corp.) Nationwide