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AUSTERE A. PANADERO Undersecretary for Local Government Department of the Interior and Local Government PERFORMANCE CHALLENGE FUND: OVERVIEW AND UPDATE
AUSTERE A. PANADERO
Undersecretary for Local Government
Department of the Interior and Local Government
PERFORMANCE
CHALLENGE FUND:
OVERVIEW AND
UPDATE
Department of the Interior and Local Government
FLOW OF PRESENTATION
1. Performance-Based Incentive Policies
Performance-Based Incentive Policy
Presidential Instruction Creating an Incentive
System for LGUs to Support National Thrust and
Priorities
GAA 2011-P500M for PCF
2. Overview on Performance Challenge Fund
3. Implementation Update and Status
4. Our Vision and Challenges
PERFORMANCE-BASED
INCENTIVE POLICIES FOR
THE PHILIPPINES
Department of the Interior and Local Government
PERFORMANCE-BASED INCENTIVE
POLICY FOR THE PHILIPPINES
(APPROVED BY THE DEVELOPMENT BUDGET
COORDINATING COMMITTEE (DBCC) ON FEB 20, 2009)
PBIP is an incentive framework to rationalize national
government inter-governmental fiscal transfers to
LGUs towards improving overall LGU performance in
governance and delivery of basic services
PBIP seeks improvement on LGU performance by
linking incentives to the achievement of a set of
performance targets
Department of the Interior and Local Government
PRESIDENTIAL DIRECTIVE CREATING AN
SYSTEM FOR LGUS’ ADHERENCE TO
NATIONAL THRUST AND PRIORITIES(18 JANUARY 2011 )
NEDA, DILG, DA, and DTI were directed to create a
system of incentives (e.g. grants, concessional loans)
and disincentives to ensure that LGUs local projects
are aligned with national priorities
Department of the Interior and Local Government
GAA 2011 SPECIAL PROVISION
P500M appropriated for Performance-Based Challenge Fund under Local Government Performance Management Program to cover financial subsidy to qualified LGUs
The Fund shall be used for the implementation of the priority projects of the national government in order to achieve the MDG, maintain core road network to boost tourism and local economic development and comply with Philippine Disaster Risk Reduction and Management Act of 2010 and Solid Waste Management Act of 2000.
DILG shall submit to DBM, House Committee on Appropriations and Senate Committee on Finance report on financial and physical accomplishments or post on DILG website, on a quarterly basis.
OVERVIEW ON
PERFORMANCE
CHALLENGE FUND AND
SEAL OF GOOD
HOUSEKEEPING
Department of the Interior and Local Government
PERFORMANCE CHALLENGE FUND:
AN INCENTIVE FOR TRANSPARENCY
AND ACCOUNTABILITY
Financial subsidy facility to stimulate local governments to put premium on performance particularly on the areas of transparency and accountability in order to avail themselves of financial support to jumpstart and sustain local economic development initiatives in their localities.
Transparent
Accountable
LGUs
Tapat na Palakad, Bayang Maunlad
Attainment of MDGsLocal Economic DevelopmentDisaster/Climate Change resiliency
Department of the Interior and Local Government
PERFORMANCE CHALLENGE
FUND
An incentive fund to LGUs which comes
in the form of counterpart funding
for Local Development Projects
in the Annual Investment Program
(AIP) and
funded out of the 20% Local
Development Fund (LDF)
consistent with national goals and
priorities
Department of the Interior and Local Government
SEAL OF GOOD HOUSEKEEPING:
PCF ELIGIBILITY CRITERIA
Open to all provinces, cities and
municipalities that passed “Seal of
Good Housekeeping” focused on:
Sound Fiscal Management highlighting the
absence of adverse COA Opinion on
LGU financial statements
Transparent and Accountable Governance
putting value on the Full Disclosure
Policy
Department of the Interior and Local Government
TARGET COVERAGE FOR 2011
Target LGUs Total
Number of
LGUs
Target
Number of
Recipients
(20%)
Amount of PCF
Subsidy
Municipalities 1,512 303 P1M
Cities 122 25 P3M
Provinces 80 16 P 7M
Total 344 LGUs
Department of the Interior and Local Government
NG-LGU COUNTERPARTING SCHEME
LGU Level Maximum PCF
Subsidy
Minimum LGU
Counterpart
Minimum
Total Project
Cost
Province P 7 Million P 7 Million P 14 Million
City P 3 Million P 3 Million P 6 Million
Municipality P 1 Million P 1 Million P 2 Million
50-50 counterpart sharing scheme - PCF shall match the
investment of the eligible LGU up to a maximum amount
based on the LGU level
Department of the Interior and Local Government
ELIGIBLE PROJECTS
Project aligned to the achievement of the following national government
thrust and priorities:
Attainment of MDGs (e.g. school buildings, rural health units and
health centers, birthing facilities, water and sanitation system, farm-to-
market roads, housing and settlements)
Local Economic Development (e.g. local roads and bridges, tourism
facilities, irrigation systems, post harvest facilities, cold storage
facilities, ports and wharves and other economic infrastructures and
growth enhancing projects such as market, slaughterhouses, and water
supply system)
Adaptation to Climate Change and Preparedness for Disasters
(e.g. flood control, reforestation, solid waste management facilities,
storm drainage, dikes and related flood protection measures, slope
protection, evacuation centers, rain water collector, early warning and
devices and rescue equipment).
Approval and Release of
PCF to LGUs
Application and Review
of Project Proposals
Assessment on Seal of
Good Housekeeping
Procedures for Accessing Fund
Criteria for
Assessment1. Compliance
to Full
Disclosure
Policy
2. Adherence
to COA
Rules and
Regulation
s – “No
adverse
COA
findings
Review
Criteria:
1. Convergen
ce with
national
developme
nt goals
and
priorities
2. Complianc
e to PCF
Require-
ments
All
Targe
t LGUs
LGUs with Seal of
Good House
keeping
LGUs which
qualify for grant
July-Sept 2011June-July 2011April-June 2011
Provinces
P7M
CitiesP3M
Municipalities
P1M
IMPLEMENTATION
UPDATES
In 2010, 30 LGUs which passed the SGH were
able to avail of PCF
LGU recipients were scattered nationwide,
leaving Regions III, IV-B and XII w/o recipients.
7 LGUs converged with NAPC focus areas
PCF-funded projects support/provide the supply
side of Conditional Cash Transfer (CCT)
PCF generated substantial amount of LGU
funds to be aligned with national priorities
Currently, done with 2011 Assessment on SGH
for 1st batch of LGUs (4th-6th class cities and 4th-
5th class municipalities) with around 69
nominees
Region X*Naawan, Misamis OrientalUrban Road Dev’t Construction of 1Km Municipal Street*Damulog, BukidnonRehabilitation of existing water system*Clarin, Misamis OccidentalConstruction of Municipal Beach
CARAGA*San Agustin, Surigao del SurWater System
Region I *Santol, La UnionConstruction of SantolDevelopment Center
Region IV-A*Pitogo, QuezonConcreting/Rehabilitation of Brgy. Road
Region V*Sto. Domingo, AlbayRHU Birthing Facility Expansion Project *Mobo, MasbateConstruction of 2-Classroom School Building
Region VI*Balete, AklanFarm-to-Market Road Rehabilitation*Anilao, IloiloLivelihood Program
Region VII*Catigbian, BoholDevelopment of Abatan River*Balilihan, BoholProvision of Potable Water Supply
Region IX*Leon B. Postigo, ZDNRehabilitation of Municipal Health Center*Tampilisan, ZDNLGU Training Center
ARMM*Datu Paglas, MaguindanaoPublic Terminal
2010 1st 15 PCF-Recipients
Region I*Alilem, Ilocos SurImprovement of Abatar-DaddaayProper to Market Road
Region II*Quezon, IsabelaSanitary Landfill (Phase I)*Saguday, QuirinoConstruction of 100 sq.m. Open-Air Market Bldg.
Region IV-A*Mataasnakahoy, BatangasImprovement and Expansion of Municipal Health Center
Region V*Camaligan, Camarines SurLivelihood Project
CAR*Banaue, IfugaoConstruction of Solid Waste Management System*Lagawe, IfugaoEcological Waste Management Program
Region VII*Maribojoc, BoholIntegrated Resource and Mgmt. Program*Amlan, Negros OccidentalEstablishment of Agri-Vocational Technical High School Center
Region VII*Kawayan, BiliranBreak Water Sea Port
Region X*Calamba, Misamis Occ.Improvement and Rehab of Rosario NeriStreet Municipal Road and Rehab of Brgy. Road
REGION XI*Dujali, Davao del NorteDevelopment of Municipal Public Market
CARAGA*San Jose, Dinagat IslandConstruction of Permanent Structure Seaport Facility Phase I*Cagwait, Surigao Del Sur Concreting and Re-blocking of NarraRoad*Carrascal, Surigao Del SurWater System
2010 2nd 15 PCF-Recipients
Department of the Interior and Local Government
Local
Economic
Development
Attainment of
MDGs
Preparing for
Disaster and
Climate
Change
Farm to Market Roads
Construction of Public Markets
Rehabilitation of Barangay Roads
Solid Waste Management & Eco-Tourism Park
Shrimp Paste Processing Plant
Public Transport Terminal
LGU Training Center
Birthing Facilities
Education Facilities (Classrooms)
Improvement of Municipal Health Centers
Potable Water Supply Systems
Expansion of Agri-Vocational Technical High School
Construction of Seal Wall and Flood Control System
Sanitary Landfill
Ecological Solid Waste Management Facilities
PCF funded-projects of the 30 LGU-Recipient ranges from
…
Department of the Interior and Local Government
SGH Criteria
No COA adverse
opinion
Full disclosure of local
budget and finances,
bids and public
offerings in all modes
or in Web +
conspicuous place
within public
buildings or print
media
1st Batch of Nominees for 2011
Region No. of Cities No. of Municipalities
I 3 22
II 0 9
III 2 6
IV-A 0 3
IV-B 0 1
V 0 0
CAR 1 1
VI 0 4
VII 0 2
VIII 0 1
IX 0 2
X 0 0
XI 1 0
XII 1 0
CARAGA 0 10
ARMM 0 0
TOTAL 8 61
INITIAL RESULTS OF ASSESSMENT (2011)FIRST ROUND (4TH -5TH CLASS CITIES & 4TH 6TH CLASS
MUNICIPALITIES)
Department of the Interior and Local Government
ASSESSMENT ON SGH FOR 2011
Fairly good performance
No difficulty in disclosing local budget and finances,
bids and public offerings
Difficulty in Passing
In full disclosure, LGUs have difficulty in posting in
all three modes –Web + conspicuous place within
public buildings or print media
Department of the Interior and Local Government
OUR VISION
Scale-up performance incentive system
Bundle programs and projects to capacitate LGUs to achieve development agenda and put together a mechanism and systems of incentives to encourage LGUs improve performance and converge with national goals and priorities
SGH/PCF as platform for convergence
platform for convergence of other incentive systems to LGUs through the adoption of the “Seal of Good Housekeeping” as a basic criteria for other incentives to LGUs
focus of convergence of NGAs, LGUs, CSOs, and development partners in improving local governance and performance
Department of the Interior and Local Government
OUR CHALLENGE
NGAs
work together to bundle programs and projects that will
capacitate LGUs to achieve their development agenda
put together a mechanism and system of incentives that will
encourage LGUs to improve performance
CSOs/POs
partner with LGUs in upgrading LGU capacity that will
improve service delivery
encourage LGUs to be transparent and accountable to their
constituents
Development partners
enhance capacity of CSOs and support development of systems
on performance management
Department of the Interior and Local Government
For more information:
Austere A. Panadero
Undersecretary for Local Government
Department of the Interior and Local Government
www.dilg.gov.ph
