A Manual on the Local Planning Process: Formulating the CDP and ELA in ARMMCopyright © 2009 Local Governance Support Program in ARMM (LGSPA)

All rights reserved.

The Local Governance Support Program in ARMM (LGSPA) encourages the use, translation, adaptation and copying of this material for non-commercial use, with appropriate credit given to LGSPA.

Although reasonable care has been taken in the preparation of this manual, neither the publisher nor contributor, nor writer can accept any liability for any consequences arising from the use thereof or from any information contained herein.

ISBN 978-971-94065-1-8

Printed and bound in Davao City, Philippines

Published by:

The Local Governance Support Program in ARMM (LGSPA)Unit 72 Landco Corporate CentreJ.P. Laurel Avenue, Bajada 8000 Davao City, PhilippinesTel. No. 63 2 227 7980-81www.lgspa.org.ph

This project was undertaken with the fi nancial support of the Government of Canada provided through the Canadian International Development Agency (CIDA).

Technical Team

WriterJulie Catherine Paran

Technical AdvisorDivina Luz Lopez

Editorial and Creative DirectionMyn Garcia

Technical Review TeamAl Madal, Assistant Regional Director, RPDO-ARMMIsa Romancap, Provincial Director, DILG- MaguindanaoEva K. TanDivina Luz LopezMerlinda HusseinCecille IsubalMyn Garcia

ContributorRizal Barandino

Technical CoordinationMaya Vandenbroeck

Art Direction, Cover Design and LayoutJet Hermida

A MANUAL ON THE LOCAL PLANNING PROCESS:Formulating the CDP and ELA in ARMM

I

ContentsLIST OF TABLES II

LIST OF FIGURES III

LIST OF BOXES IV

FOREWORD 1

ACKNOWLEDGEMENTS 3

PREFACE 5

INTRODUCTION 7Some Implications of ARMM Autonomy 7Autonomy, Planning and Responsive Service Delivery 8Rationalized Planning System 9The Major LGU Plans and Implementing Mechanisms 10

ABOUT THE MANUAL 13

GETTING STARTED 151.1 Orienting the Local Chief Executive and the Sangguniang Bayan/Panlungsod 151.2 Organizing and Mobilizing the Planning Team 171.3 Training the Planning Team 231.4 Conducting Preliminary Work 23

FORMULATING THE PLAN 272.1 The CDP and ELA 272.2 Legislation and Policy Issuances on CDP and ELA 292.3 The CDP and ELA Formulation Process 302.4 Integrating Plans 322.5 Updating the CDP and ELA 332.6 Formulating/Revisiting the LGU Vision and Mission Statements 342.7 Determining the Vision-Reality Gap 372.8 Formulating/Validating Goals and Objectives 502.9 Formulating Strategies 572.10 Identifying Programs and Projects 592.11 Determining CDP Legislative Requirements 61

GEARING UP FOR PLAN IMPLEMENTATION 653.1 Formulating the Executive and Legislative Agenda 653.2 Integrating Lower Level Plans 713.3 The Local Development Investment Program 713.4 The Annual Investment Program 913.5 Translating the AIP into the Budget 973.6 Determining Capacity Development Needs for ELA Implementation 101

ADVOCATING THE PLAN 1074.1 The Communications Plan 1074.2 Developing the Communications Plan 1084.3 Implementing the Communications Plan 112

II

MONITORING & EVALUATION 1155.1 What is Monitoring and Evaluation (M & E)? 1155.2 Developing the M & E Strategy 1195.3 Eff ectively Communicating and Using M&E Results 121

ANNEXES 125

LIST OF TABLES

Table 0.1 Hierarchy and Relationship of LGU Plans 12Table 1.1 Sphere of Infl uence and Potential Contribution Table 20Table 2.1 The Six Development Sectors of ARMM 28Table 2.2 The CDP and ELA Process 31Table 2.3 Current Reality Rating Scale 44Table 2.4 Example of Vision-Reality Gap Analysis 44Table 2.5 LGPMS Performance Levels and Implications to Planning 45Table 2.6 Using the LGPMS Single Year Report 46Table 2.7 Interpreting the LGPMS Matrix 46Table 2.8 Using LGPMS Comparative Performance 47Table 2.9 Using LGPMS Performance Trends 47Table 2.10 CBMS Scores, Municipality of Labo, Camarines Norte 48Table 2.11 Local Development Indicators, Sta Elena Camarines Norte 2003 49Table 2.12 Diff erences between goals and objectives 51Table 2.13 LGPMS Outcome Indicators for Social Services 52Table 2.14 Core Local Poverty Indicators (CLPIs) 53Table 2.15 Results and Success Indicators 54Table 2.16 Results and Targets 55Table 2.17 Setting Targets Based on LGPMS Comparative Performance 57Table 2.18 Setting Targets Based on LGPMS Performance Trends 57Table 2.19 Guide to Identifying Strategies 59Table 2.20 Identifying Programs and Projects Using LGPMS 61Table 2.21 CDP Legislative Requirements 62Table 3.1 Steps in Developing the ELA 68Table 3.2 Guide to Distinguish Projects from Non- Projects 75Table 3.3 Sifting Projects from Non-Projects 76Table 3.4 Sifting Projects for Ownership 77Table 3.5 Time Series Record of Property Tax Revenue 79Table 3.6 Time Series Record of Revenue Other than Property Tax 80Table 3.7 Time Series Record of LGU Operating Expenditures 81Table 3.8 Obligated Debt Service Expenditure 81Table 3.9 Projection of Property Tax Revenue 82Table 3.10 Projection of Total Revenue 83Table 3.11 Projection of LGU Operating Expenditure 83Table 3.12 Projection of New Investment Financing Potential 84Table 3.13 Local Development Investment Program (LDIP) Project Summary 85Table 3.14 Reference Code by Sector and Sub-Sector 95Table 3.15 AIP Form 96Table 3.16 Sample of a Capacity Development Plan for ELA Implementation 103Table 4.1 Communication Plan Matrix 109Table 4.2 IEC Implementation Plan Matrix 112Table 5.1 Salient Features of Monitoring and Evaluation 116Table 5.2 M&E Points in a Three-Year Term of Offi ce 118Table 5.3 M&E Strategy 120Table 5.4 Local Governance Performance Management System 121Table 5.5 Annual/End-Of-Term Accomplishment Report 123

III

LIST OF FIGURES

Figure 1.1 Structure of the Planning Team 21Figure 1.2 Session Flow of the Training and Planning Workshop 24Figure 2.1 Simplifi ed CDP and ELA Process 32Figure 2.2 GIS Map showing access of households to sanitary toilets 49Figure 2.3 Relationship Between Goals & Objectives: An Example 50Figure 2.4 Strategy Formulation using SWOT 58Figure 3.1 Link of CDP Legislative Requirements and LA 70Figure 3.2 Local Funds for Development 72Figure 3.3. LDIP Process as a Link between Development Planning and Budgeting 73Figure 3.4 LGU Financing Options 86Figure 3.5 Plan-Budget Flow 91Figure 3.6 Local Planning and Budgeting Linkage8 92Figure 3.7 Timetable and Activity Flow of the AIP Preparation Process 94Figure 3.8 Budget Preparation Process 99Figure 3.9 Major Contents of the Executive Budget 100

LIST OF BOXES

Box 1.2 PICT as Functional Committee of the LDC in ARMM 17Box 1.3 Multi-stakeholder Participation in CDP and ELA Formulation: 18 The Buldon, Maguindanao Experience 18Box 1.4 Benefi ts of Training Elective Offi cials: The Case of Upi, Maguindanao 23Box 1.5 Formulating the CDP and ELA 25Box 2.1 Calanogas, Lanao del Sur’s Poverty Reduction Thrust: Working Hand-in-Hand with National Government 33Box 2.2 Formulating the Vision 34Box 2.3 Examples of LGU Visions 35 Confl ict Sensitive and Peace Promoting Vision 35 Turtle Islands, Tawi Tawi Vision: Ambitious yet Well-grounded 35 Basilan’s Shared Vision that Recognizes Diversity 35Box 2.7 Types of Vision Statements 36Box 2.6 Tips in Crafting the Vision 36Box 2.8 Confl ict Sensitive and Peace Promoting Mission 37 Sumisip, Basilan Mission: 37 Achieving the Purpose through People Participation 37Box 2.11 Examples of ARMM Mission Statements 38Box 2.11 Examples of ARMM Mission Statements 39Box 2.12 SMART Criteria for Developing Goals and Objectives 52Box 2.13 Importance of Project Identifi cation Phase 59Box 2.14 Adapting Good Practice: the Southwestern Liguasan Alliance of Municipalities (SLAM), Maguindanao 60Box 3.1 Converging on a Blueprint for Development: Acting in Concert in Upi, Maguindanao 67 The ELA as Resource Mobilization Tool: The Kapatagan, Lanao del Norte Experience 67 Prioritizing Peace and Human Security in Kapatagan, Lanao del Norte 67Box 3.4 Sample Format Of The Executive And Legislative Agenda 69Box 3.5 The LDIP 71Box 3.6 Preparing Project Briefs 78Box 3.7 Managing the Fiscal Gap in Barangay Sarmiento, Parang, Maguindanao 88Box 3.8 Example of a Financing Scheme for LGU Projects: 90 Local Urban Water Supply Project of the Development Bank of the Philippines (DBP) 90Box 3.9 Example of Capacity Assessment for a Revenue Goal 104Box 4.1 Pre-testing Methods for Communication Strategies 112Box 5.1 Conducting Orientation Meeting for the Monitoring Team 117Box 5.2 The 120 Days Governor’s Report of Shariff Kabunsuan 119Box 5.3 The State of Local Governance Report of the Municipality of Wao, Lanao del Sur 122 Measuring LGU Performance 122

IV

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Assalamo Alaikum Warahmatullahi Wabarakatuho!

HE DEPARTMENT OF THE INTERIOR AND LOCAL Government-ARMM (DILG-ARMM) congratulates the Local Governance Support Program in ARMM (LGSPA) for publishing A Manual on the Local Planning Process: Formulating the CDP and ELA in ARMM. This manual is indeed a signifi cant and timely contribution to the Department’s continuing eff orts to enhance the

quality of local governance in the Autonomous Region in Muslim Mindanao (ARMM).

In a region like ARMM, the pursuit of peace and development through excellence in local governance is an important, albeit, challenging endeavour. And it begins with strong and eff ective leadership that sets a clear vision for the LGU, steering it to the right direction towards this vision and building multistakeholder ownership. Alongside strategic and eff ective leadership is the crucial process of local develop-ment planning, which is fundamental in equipping local chief executives in charting the future of their localities in ARMM. Good governance is about building partner-ships and engaging the participation of various stakeholders in promoting shared ownership of plans and shared accountability of results. Convergence and participa-tory approaches in local development planning foster transparency, accountability, responsiveness and eff ectiveness in and of governance. DILG-ARMM would like to thank the LGSPA for taking the LGUs in ARMM through a productive process in formulating and implementing their Comprehensive Devel-opment Plans (CDPs) and the Executive and Legislative Agendas (ELAs) that rein-forces eff orts to make local autonomy more meaningful for the people of ARMM.

orewordF

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This manual is undeniably a useful reference for the leadership and technical staff of LGUs in ARMM. DILG will continue to promote its use to local governments as they continue to respond to the provisions of the Muslim Mindanao Autonomy Act No. 25 in strengthening local autonomy in ARMM, empowering communities and improv-ing people’s lives.

More power and Wassalam!

Hon. Ansaruddin A. AdiongRegional Vice Governor, Autonomous Region in Muslim Mindanao (ARMM)Regional Secretary, Department of the Interior and Local Government in ARMM

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HIS PUBLICATION WAS MADE POSSIBLE THROUGH THE dedication and collective eff orts of individuals and teams who have willingly shared their ideas and valuable time in conceptual-izing and developing this Manual.

The Local Governance Support Program in ARMM (LGSPA) would like to thank …

… the Local Chief Executives, Vice Local Chief Executives, Provincial Inter-Agency Coach Teams (PICTs), Local Planning and Development Coordinators, Local Legisla-tive Councils, Local Government Operations Offi cers, Civil Society Organizations and community representatives and the rest of the technical staff of local govern-ments in ARMM who formulated and implemented their CDPs and ELAs and pro-vided the good experiences and content included in this Manual

… Local Resource Partners and On-Site Coaches who helped local governments in formulating and implementing responsive and relevant CDPs and ELAs. Without their expertise, LGSPA would not have been able to successfully implement its initia-tive in strengthening local development planning process in ARMM

… The Technical Team of this publication who were so committed to developing and seeing through the completion of the manual

… LGSPA managers and staff who contributed in many ways to the completion of this Manual and in promoting an integrated local development planning process that is able to make a diff erence in promoting good governance in ARMM

cknowledgementsA

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5

MANUAL ON THE LOCAL PLANNING PROCESS: Formulating the CDP and ELA in ARMM represents the collective experience of some 118 local governments that were supported by the Local Governance Support Program in ARMM (LGSPA) in crafting and implementing their Comprehensive Development Plans (CDPs) and their term based action plan, the Executive and

Legislative Agendas (ELAs). This manual is a synthesis of the insights and lessons learned from these experiences. It is also another testament to the continuing commitment of LGSPA to knowledge building and sharing in the arena of local governance in ARMM.

This publication is aligned with LGSPA’s eff orts to promote meaningful local au-tonomy in ARMM leading to genuine and people-centered development, which can only happen if local governments are able to formulate and implement well though-tout and consultative plans that recognize the political, economic, social and cultural uniqueness of ARMM.

This manual is also in support of the Rationalized Planning System, being pursued by the Department of the Interior and Local Government (DILG), which aims among others to a) reduce the number of plans that LGUs must prepare, b) reconfi gure the planning process to make it more participatory and consultative, c) underscore the importance of the legislative body as partners of the executive branch in planning for their jurisdictions and d) promote the development of a medium term CDP and its term-based action plan - the LGU’s 3 year ELA. As well, this manual reinforces and advocates the need for vertical and horizontal integration of local development plan-ning including the interface between LGUs and regional government agencies and complementation between and among the diff erent LGUs in planning and budgeting.

refaceP

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The CDP and the ELA have been shown to be powerful tools to guide local offi cials in ARMM to become better development managers to help communities in the region become self-reliant. This manual will assist them to sustain the changes they have begun to instill in their respective localities.

It is our hope that this publication will help local offi cials, the Provincial Inter-agency Coach Teams (PICTs), local planners and other local government actors to engage in local development processes that will result in improved and responsive gover-nance in ARMM.

Local Governance Support Program in ARMM (LGSPA)

SOME IMPLICATIONS OF ARMM AUTONOMY

The 1987 Constitution explicitly bestows the granting of genuine autonomy to Muslim Mindanao. Among the powers promised the autonomous regions are the following:

Administrative organization1. Creation of sources of revenues2. Ancestral domain and natural resources3. Personal, family, and property relations4. Regional urban and rural planning development5. Economic, social, and tourism development6. Educational policies7. Preservation and development of the cultural heritage and8. Such other matters as may be authorized by law for the promotion of 9. the general welfare of the people of the region.

Prior to the Constitution of 1987, national policies were uniformly imple-mented in all regions of the country that did not allow for variances in ap-proach. The Local Government Code of the Autonomous Region in Mus-lim Mindanao- Muslim Mindanao Autonomy Act No. 25 (MMA No. 25)allows ARMM jurisdictions fl exibility and more power to accelerate their economic growth and upgrade the quality of life of the people of ARMM (Sec 5c MMA No. 25). This has opened up opportunities for local govern-ments in ARMM to experiment on what works best for their areas.

Likewise, the powers under the MMA No. 25 provide possibilities for the territorial and political subdivisions of the Autonomous Region in Muslim Mindanao (provinces, cities and municipalities) genuine and meaningful local autonomy to enable them to attain their fullest development as self reliant communities and make them more eff ective partners in the attain-ment of regional goals.

7

Introduction

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A strong argument that has been put forward in favor of local autonomy is its positive eff ects to the more effi cient, eff ective and responsive delivery of services. It has been argued that government eff orts are seen as too sluggish largely because decision-making is centralized in the national government (Tanggol, 1990). It has been surmised that autonomy would rid the wariness among the Muslims, increase their trust in the govern-ment and pave the way for the unhampered implementation of the development pro-grams in the region (Ibid).

AUTONOMY, PLANNING AND RESPONSIVE SERVICE DELIVERY

With all the arguments for autonomy, it is surmised that it is good. However, real au-tonomy does not necessarily lead to development. Real development for the people of ARMM can only happen if local governments improve their allocative effi ciency (de-fi ned as spending on the right things) through the formulation and implementation of well thought out plans that recognize the political, economic, social and cultural factors unique to ARMM.

There is wide acceptance that local government units (LGUs) in ARMM need to formu-late plans that fi t the region’s conditions without losing sight of the experiences and lessons learned of other local governments outside ARMM.

The Phase II of the Local Government Support Program’s (LGSP II) eff orts to improve the allocative effi ciency of ARMM LGUs started as early as 2002 when it assisted 23 LGUs in the ARMM develop their Executive Agenda. However, while the Executive Agenda assistance was successful and groundbreaking, the tool itself proved to be inad-equate in managing an LGU since it did not engage the legislative branch as partners in the process. In 2004, 110 ARMM LGUs were assisted in coming up with their Executive-Legislative Agenda, which equally engaged both branches of government. In 2007, the Local Governance Support Program in ARMM (LGSPA) introduced the CDP-ELA to 118 LGUs to help local governments manage their respective jurisdictions in the medium and short term.

While the ELA proved to be eff ective in guiding how LGUs spent their budgets during their term of offi ce, it was not suffi cient in ensuring continuity of funding for programs and projects that go beyond the term of offi ce of elected local offi cials. Thus the need for the introduction of the CDP as the medium term plan of the LGU. The introduction of the CDP is in line with national government’s eff ort to improve the link between plan-ning and budgeting being promoted by Department of the Interior and Local Govern-ment (DILG), National Economic and Development Authority (NEDA), the Department of Budget and Management (DBM) and the Department of Finance (DoF).

The Comprehensive Development Plan (CDP) and its three year component, the Execu-tive – Legislative Agenda (ELA) have been shown to be powerful tools for promoting fi scal responsibility in the region. Through the ELA, LGUs are able to link their spend-

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ing decisions to the real needs and priorities of their respective jurisdictions. These plans can provide direction as well as the impetus for local offi cials to become eff ective manag-ers of their resources in the service of their communities.

RATIONALIZED PLANNING SYSTEM

Local planning in the Philippines has been characterized as irrational and chaotic, with LGUs developing as many as 27 plans. It is widely acknowledged that although LGUs develop plans, many of these plans are not implemented. Experts admit that many local plans are mainly done for compliance purposes and not really for guiding development in their respective jurisdictions. This is partly due to the fact that planning has been a highly technical undertaking with little or no participation from stakeholders. Moreover, plans between diff erent levels of government suff er from isolation and weak integration that is inherent in the overall national planning process.

The Rationalized Planning System (RPS), presently being pursued by the Department of the Interior and Local Government (DILG), is intended to put order to the disjointed state of local planning and rationalize local planning structures and processes in the country (RPS 2005).

Among the recommendations being put forward in the RPS include the following points:

reducing the number of plans that LGUs must prepare to the two comprehensive 1. plans --- the Comprehensive Land Use Plan and the (CLUP) Comprehensive De-velopment Plan (CDP) that are mandated in the Local Government Code. This has implication for national government agencies (NGAs) promoting the formulation of certain sectoral or thematic-based plans since in the RPS, it is recommended that these requirements be integrated into the CLUP or CDP, as the case may be;reconfi guring the planning process from its traditional technocratic form into one 2. that accommodates the imperatives of multi-stakeholder participation and consulta-tion. This entails simplifying the planning process so that even those who are not technically trained can participate meaningfully in determining public policies and actions that aff ect their lives;emphasizing the importance of strengthening the Local Development Councils 3. (LDC) as the mandated structure to formulate development plans in the LGU. This would mean the organization of sectoral or functional committees to assist the LDC in the performance of its functions (e.g. SWM boards, GAD focal points, Local Hous-ing Boards, Tourism Boards, among others);underscoring the importance of the legislative body as partners of the executive 4. branch in advancing the general welfare of its constituents, thus both have important roles to play in planning for their jurisdictionspromoting the development of a medium term CDP (6 years) to align with the MT-5. PDP and MTPIP, and a term-based action plan of the CDP (3 years) which becomes the LGU’s Executive-Legislative Agenda (ELA).

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To further facilitate the interface between LGUs and national government agencies and the complementation between and among the diff erent levels of LGUs in planning and bud-geting, the four oversight agencies namely the DILG, NEDA, DBM and DoF issued Joint Memorandum Circular 1, s 2007 (JMC 1 , s 2007) that provided guidelines on the harmoni-zation of local planning and budgeting. The JMC is further discussed in Section 2.2.

THE MAJOR LGU PLANS AND IMPLEMENTING MECHANISMS

Local governments are mandated to prepare two major plans --- the CLUP and the CDP. These plans, although distinct from each other, follow an integrated and iterative process of development. At the outset, it is important that LGUs be able to discern the relationship of the various plans and planning requirements and see how each one builds on the other.

Ideally, the CLUP, which provides the long term guide to the management of the locality, is developed prior to the CDP which presents the sectoral directions for the LGU. Howev-er, the absence of a CLUP should not stop the LGU from developing a CDP. The CDP then becomes the starting point in the development of the ELA. Approved local development plans are, in turn, made operational through the local budgets (Sec. 305 (i), LGC).

The CDP and ELA are powerful tools that LGUs can use to manage and utilize resources effi ciently (allocative effi ciency). The ELA based LDIP and AIP are valuable instruments for ensuring that desired results or goals of the local governments are achieved. Alloca-tive effi ciency requires that LGUs establish and prioritise PPAs towards desired results. Prioritisation of programs and projects in the ELA is a good move towards better link-age of plan and budget. The LDIP is a major instrument for translating LGU priorities into action (i.e. the LDIP is supposed to contain LGU priority PPAs). It is a tool to help LGUs improve decisions on resource allocation.

The mandated plans and their implementing mechanisms are discussed in more detail below:

Comprehensive Land Use Plan

The CLUP has the following salient features:

Long-term (10-15 years) management of local territory• “Comprehensive” because it encompasses the entire territorial jurisdiction of the • LGU such as determining the available supply of land resources, land requirements of the various sectoral plans of the CDP as well as the most appropriate uses of land and water resources within the entire LGUProvides the skeletal framework which defi nes the desired physical pattern of growth • of the locality and identifi es areas where development can and cannot be located and directs public and private investments accordinglyHas four policy areas – production, settlements, protection and infrastructure•

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Is the local equivalent or counterpart of the physical framework plan at the national, • regional and provincial levelsIs legally enforceable through the zoning ordinance. •

Comprehensive Development Plan

The CDP has the following salient features:

Medium-term (six years) to coincide with the Medium Term Philippine Development • Plan (MTPDP) and the Medium Term Philippine Investment Program (MTPIP).Comprehensive refers to its multi-sectoral coverage. The CDP includes fi ve develop-• ment sectors prescribed by the DILG guidelines namely: social, economic, physical/infrastructure, environmental and institutional. Particular to ARMM, another sector on culture is added to highlight its importance in the region. Provides a convergence mechanism to integrate all existing topical and thematic • plans required by NGAs such as disaster management plan, Local Poverty Reduction Action Plan (LPRAP), Integrated Area Community Public Safety Plan (IACPSP) and the Local Council for the Protection of Children (LCPC 4 gifts for children).

The Executive-Legislative Agenda

The ELA is the plan that contains the three-year priorities of the executive and legisla-tive departments of the LGU. The medium term CDP serves as a take off point in the development of the ELA with the ELA as the term based action plan of the CDP. The ELA contains the prioritized programs, projects and proposed legislations from the CDP based on an agreed set of criteria by the LGU. Being an agenda of elective offi cials, the ELA may also contain other thrusts and priorities of the executive and legislative depart-ments which may not have been identifi ed in the medium term CDP to address pressing concerns and new developments in the locality.

Local Development Investment Program and Annual Investment Program

The Local Development Investment Program (LDIP) is the principal instrument for implementing the CDP and to some extent, certain aspects of the CLUP. The LDIP links the plan to the budget, thus putting into eff ect the directive of the Code that “local budgets shall operationalize approved local development plans (sec. 305, RA 7160). The LDIP assumes a timeframe of 3 years consistent with the ELA.

On the other hand, the annual investment program (AIP), taking off from the LDIP, is a prerequisite of the annual budget process. It contains a list of prioritized programs and projects proposed for inclusion in the annual local budget.

The table below describes the hierarchy and relationship of plans that LGUs are expect-ed to prepare in the context of the LGC and based on the guidelines issued by the DILG.

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Plans Defi nition Main Contents Time-frame Legal Basis

CLUP Policy guide for the regula-tion of land uses embracing the LGU’s entire territorial jurisdiction

Policies on settlements, protected areas, production areas, and infrastructure

10-15 years Sec. 447, 458, 468 of LGC

CDP Multi-sectoral plan to pro-mote the general welfare of the LGU.

Sectoral goals, objectives, strategies, programs, projects and legislative measures

6 years Sec 476b (1) and (5) of LGC

ELA Term-based component of the CDP

Priority sectoral goals, objec-tives, strategies, programs and projects, legislative measures

3 years Sec. 444, 455, and 465

LDIP Principal instrument for implementing the CDP and ELA and to some extent, cer-tain aspects of the CLUP

Prioritized PPAs and program for planned fi nancing

3 years Sec. 305

AIP One year slice of the LDIP Prioritized PPAs proposed for inclusion in the annual local budget.

1 year Sec. 305444, 455,465

Table 0.1: Hierarchy and Relationship of LGU Plans

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A Manual on the Local Planning Process: Formulating the CDP and ELA in ARMM provides a useful guide to help LGUs in the Muslim region be in a better position to identify people’s needs,

encourage people’s participation and ensure that appropriate programs and projects are prioritized for their constituents. The manual veers away from being prescriptive and encourages innovation on the part of ARMM LGUs on what works on the ground in the formulation and implementa-tion of medium term (CDP) and term based (ELA) plans.

This manual supports the DILG’s continuing eff ort to enhance and rationalize planning at the local level as well as strengthen the plan-ning capacities of LGUs. It is an off shoot of an earlier manual on How to Formulate an Executive-Legislative Agenda (ELA) for Local Governance and Development, a project of the Department of the Interior and Lo-cal Government (DILG) and the Canadian International Development Agency funded program, Philippines-Canada Local Government Support Program -Phase II (CIDA-LGSP II). The earlier manual has been modifi ed and updated to support the Rationalized Planning System (RPS) Project currently being undertaken by the DILG.

The manual elucidates the relationship of CDP as the medium term plan of the LGU and the ELA as the term based plan of local elective offi cials. While the CDP and the ELA are two distinct documents, they are both the products of an integrated planning process. This integrated process is discussed in detail in the manual.

This manual draws heavily on the positive experiences of local govern-ments within ARMM who have successfully formulated and implemented their CDP and ELA. Further, it refl ects the experiences of other LGUs in the country over the course of many years, and has been constantly updated and expanded to show best practice. This revised edition- has been exten-

About the Manual

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sively rewritten in consideration of distinctive characteristics of the ARMM, including the use of formal and informal organizations in local planning. The manual has been prepared to assist ARMM LGUs to develop plans that are attuned to the distinctive historical and cultural heritage, and economic and social structures of the region.

The manual is a simple step-by-step guide to formulating the six year CDP and the ELA as its three year counterpart. It includes tools, templates and practical tips in plan-ning and provides cross-referencing with other related manuals for more advanced and detailed tools and techniques (detailed tools and techniques such as the NEDA Guide-book on Provincial and Local Planning and Expenditure Management Volume 4). In ad-dition, the manual features guidelines and tools on how local plans can be made more poverty focused, confl ict sensitive and peace promoting. These concerns are particularly relevant to ARMM LGUs. It also links existing LGU databases such as the Local Gover-nance Performance Management System (LGPMS) and the Community-Based Monitor-ing System (CBMS) with the planning process and illustrates how these can be useful at each planning stage.

The manual is designed for LGUs, more specifi cally the Local Planning and Develop-ment Offi ce, as technical secretariat of the Local Development Councils (LDCs), the main planning bodies of the LGUs at various levels. It is also intended for use by the Provincial Inter-Agency Coach Teams (PICT) that can act as functional committees to provide technical support and assistance to city and municipal local governments in developing their CDP and ELA.

It could also be a valuable reference for developing orientation sessions for the LDCs including their sectoral committees, as well as the local sanggunian members, who have the mandate to approve local development plans and budgets.

The manual is structured to refl ect the sequential steps in the CDP and ELA formulation process covering getting started, formulating the plan, gearing up for plan implementa-tion, advocating the plan, and monitoring and evaluation.

1 The formation of PICTs in ARMM have been an innovative way of capitalizing on the technical expertise of the different line agencies operating within the province.

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The recommended process of developing the CDP and the ELA diverts from a traditional expert-driven to a multi-stakeholder participatory approach. This requires preparations at the onset for

meaningful participation to happen.

Developing the CDP and the ELA is a challenging task and this can not be done without the support of elective offi cials. The following steps are necessary to help ensure a more collaborative eff ort between the executive and legislative departments in the LGU as well as provide impetus for the active participation of diff erent stakeholders in the LGU. In ARMM, both formal and informal groups and structures that recognize cultural and po-litical diversities within the LGU and acknowledged by communities need to be included from the start to come up with a realistic plan that is imple-mentable as well as build commitment and support. Care has to be taken to include infl uential groups such as Muslim religious scholars and leaders (ulama), elders, traditional leaders (datu), and Islamic jurists (mufti).

1.1 ORIENTING THE LOCAL CHIEF EXECUTIVE AND THE SANGGUNIANG BAYAN/PANLUNGSOD

Regardless of whether the local government unit (LGU) is preparing its Comprehensive Development Plan (CDP) or the Executive and Legislative Agenda (ELA) for the fi rst time or embarking on a revision/updating of its CDP or ELA, an orientation of the Local Chief Executive (LCE) and Sang-guniang Bayan/Panlungsod (SB/P) should be the fi rst order of the day.

Getting Started

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Who will conduct the Orientation?

The orientation activity may be conducted by the Local Planning and Development Coordinator (LPDC) and the Local Government Operations Offi cer (LGOO). Given the extensive experience of PICT members in assisting LGUs in developing their CDP and ELA in ARMM, it is recommend that they be brought in to provide support in orienting the LCE and the SP/SB. What will the Orientation cover?

The orientation will involve a discussion on the fol-lowing:

Overview of the Local Planning Process and a. the types of plans that LGUs are mandated to prepare The CDP and ELA as management toolsb. The CDP and ELA formulation process within c. the context of the local budget cycle Preparedness Check to assist the Local Chief Executive (LCE) and the Sangunian d. Bayan/Panglungsod (SB/P) assess the LGU’s capacity in preparing the CDP and the ELA in terms of the availability of the following:

manpower with appropriate skills• fi nancial resources • time to be devoted to the exercise and• data and other reference documents•

Additional topics, such as development perspectives to set the context for planning, may be included. For confl ict-prone LGUs, it would be useful to have a session on confl ict sen-sitive and peace promoting planning as this is a critical factor to any development eff ort in the area.

How long will the Orientation take?

A maximum of three hours should be enough to cover the salient points that the LCE and the SB/P should know about the CDP and ELA formulation process.

Integration of special topics, such as confl ict sensitivity and peace promotion for ARMM, may entail an additional two to four hours of orientation.

Box 1.1 Additional Topics for ARMM

For confl ict-prone LGUs, the orien-tation topics need to be expanded to include sessions on confl ict sen-sitive and peace promoting planning particularly:

• Peace, violent confl ict, struc-tural violence and its many faces at the local level, and

• Human security and its require-ments.

Early on, the LCE and the SB/SP need to appreciate and understand key concepts in human security and confl ict sensitivity and its ap-plications in local governance and planning.

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When should the Orientation take place?

Ideally, the CDP and ELA preparation should be anchored on the local budget cycle so that the programs, projects and activities (PPAs) that are listed in the plan can be includ-ed in the Local Development Investment Plan (LDIP), the Annual Investment Program (AIP) and in the Budget or Appropriations Ordinance (AO). This is also consistent with the updated Local Budget Operations Manual recently issued by the DBM that empha-sizes the link of budget to plan.

The ELA rides on the term of the LCE. Therefore, the orientation for the CDP and ELA preparation should take place immediately after the LCE is sworn into offi ce, preferably before the convening of the LDC (not later than the fi rst week of July of election year) or not later than the third quarter of the year of his/her election. This is because planning should be harmonized with the Local Budget Cycle, so that the budgetary requirements for the implementation of the plan can be incorporated into the AIP and the Appropria-tions Ordinance (AO).

Where should the Orientation take place?

There are no hard and fast rules as to where the orienta-tion should take place. The venue may be in the offi ce of the LCE or in the session hall of the SB, or any other place convenient and agreed upon by the LCE and the SB.

1.2 ORGANIZING AND MOBILIZING THE PLANNING TEAM

The Local Development Council (LDC) is the body that is given the task of preparing the multi-sectoral development plans. It is considered the “mother of all planning bodies.” It is therefore critical to ensure that the LDC as well as the functional and sectoral committees as providers of techni-cal support and assistance are constituted and activated.

Sectoral committee members are drawn from various sec-tors of the community – the academe, religious, business, government, non-government organizations, people’s organizations and other civil society organizations. In confl ict-sensitive and peace-promoting planning, tradi-tional security sectors (AFP, PNP) that are present in the locality should be represented. To the extent possible, both formal and informal structures that recognize cultural and political diversities within the LGU and utilized by communities need to be included to build commitment

Box 1.2PICT as Functional Committee of

the LDC in ARMM

In ARMM, Provincial Inter-Agency Coach Teams (PICT) were orga-nized as functional committees to provide technical support and assistance to city and municipal governments in developing their CDP and ELA. Created through Executive Orders issued by the gov-ernors, the PICTs were composed of technical staff of the different line agencies operating within the prov-ince. Equipped with coaching skills, the PICT members augmented the capacity of the Provincial Planning and Development Offi ce (PPDO) in facilitating planning activities with component LGUs.

Each LGU was assigned a trained coach to provide handholding assistance in the formulation of their plans. PICTs convened regular meetings to provide feedback and updates on the progress of the CDP and ELA

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and support for the plan. Functional committees should likewise be multi-sectoral. However, the life of functional committees depends on the need for its continued existence.

In preparing the CDP or ELA, a planning team may be drawn from the sectoral committees and orga-nized as a functional committee for the duration of the CDP or ELA formulation. Said functional com-mittee should be de–mobilized or de-commissioned once the CDP or ELA has been completed, endorsed by the LDC and approved by the SB/P. It may, how-ever, be re-created as a support machinery of the LDC for advocating ELA, or of the LPDO for moni-toring and evaluating ELA implementation.

What is the minimum composition of the planning team?

While the LCE is in the best position to determine the size and composition of the planning team, it is highly recommended that this activity be done together with the vice mayor to build trust and establish close rapport early on in the process. The following is the suggested minimum composition:

Mayor as the chairperson and the vice –mayor as co - chairperson a. LPDC as the operations offi cer and secretariat head b. Department heads representing the six development sectors and/or agency headsc. SB committee chairs of major sectors d. Representatives of the majority and minority blocs of the SBe. Representatives of civil society (infl uential Muslim religious scholars and leaders f. (ulama), elders, traditional leaders (datu), Islamic jurists (mufti), infl uential business groups such as the Autonomous Basilan Islamic Chamber of Commerce and Indus-try (ABICCI) in Lamitan City)DILG LGOO as facilitator/coach.g.

What are the factors to consider in selecting planning team members?

The following criteria should be considered in the selection of the planning team members:

Membership in formal and legally recognized LGU structures for planning such as the: a. LDC, which is the main body responsible for local development planning, • including its functional committeesSB/P, which has the mandate to approve local development plans and budgets, • including the sectoral committees

Box 1.3Multi-stakeholder Participation in

CDP and ELA Formulation:The Buldon, Maguindanao

Experience

“Working hand in hand and with the support of all stakeholders, I believe that we can effectively implement the programs and projects enunciated in this CDP-ELA 2008-2013,” was the message of Mayor Fatima Tomawis to her constituents.

The formulation of the CDP and ELA of Buldon, Maguindanao involved the participation of various stakehold-ers of the municipality in the various stages of its development.

Meetings and dialogues were under-taken to come up with the various elements of the plans. Representa-tives of civil society groups that participated included the Ulama Council, women, and religious groups.

19

key departments/ units within the LGU involved in program/project imple-• mentation Local Government Operations Offi cer (LGOO) for technical assistance• LPDO for secretariat support and overall coordination of all related planning • eff orts of the LGU.

Equitable representation from various stakeholder groups external to the LGU, and b. other civil society organizations Gender balance – This will not only promote and ensure the understanding of issues c. aff ecting women, men and other subgroups in the locality but also manifest the LGU’s adherence to and support for Gender and Development (GAD) mainstreaming eff orts in the bureaucracyCapacity to absorb the plan formulation workload – Plan preparation can be tedious d. and pressure laden. Consideration for the existing assignments of the prospective member should be made to avoid confl ict in workload and schedules particularly in the light of the ELA timeframe.

This set of criteria can be looked upon as basic considerations for planning team selec-tion. LGUs can, of course, add or substitute other criteria as they deem fi t given their respective situations and priorities.

A useful tool in selecting planning team members is the Sphere of Infl uence and Po-tential Contribution Analysis (see Table 1.1). Putting scores and weights for eventual ranking will certainly help but is not necessary. What is essential is that the analysis can serve as an input to the Preparedness Check.

What are the qualities and qualifi cations of the planning team members?

To be able to eff ectively respond to the challenges and demands of the CDP formulation process, the members of the team should possess:

knowledge of:a. the planning process• development and governance concepts and principles •

skills in:b. planning • problem analysis • technical writing, and• communications and networking•

knowledge, understanding of and sensitivity to critical development themes such as c. poverty, environment, gender and peace which LGUs are mandated to incorporate in their local plans talent and profi ciency in consultation processesd. willingness to work with otherse.

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Prospective Planning Team Members

Sphere of Infl uence Potential Contributions

MPDC Local Development Council (MPDC is head of the secre-tariat of the LDC)

Access to LGU databases, plans, and reports

Ulama Tawi-Tawi Knowledge of Koran teachings; assist the LGU efforts in com-municating and disseminating information on the CDP and ELA

Key heads of various LGU offi ces

Various sectoral and multi-sectoral committees set up to implement national/regional programs in the locality

Sector-based dataholdings; tools for analyzing and planning for their respective sectors

Table 1.1 Sphere of Infl uence and Potential Contribution Table

Sphere of Infl uence - indicates the individuals, groups or sectors, which a prospective planning team member can infl uence or catalyze towards a productive or, even, an affi rmative response to an issue or an undertaking.

Potential Contributions – the expertise or resources which prospective members can share towards the completion, approval and adoption of the Plan.

Who will set directions for the planning team?

The LDC shall set the course for the planning team. The LCE as chair of the LDC neces-sarily takes the lead and guide the plan formulation eff ort. He/she may however, desig-nate a focal person, like the LPDC, to act like an operations or executive offi cer who can take charge of the team’s day-to-day operations until the plan is completed and approved by the SB/P. The SB/P, on its part may also designate a counterpart from among its own members or from its sectoral committees.

How will the planning team be organized?

The planning team can be organized according to the structure as shown in Figure 1.1 below:

What is the role and function of the Chair/ Co-Chair?

Review the Work Plan and Budget and recommend its approvala. Designate the members of the planning team and defi ne their functions and assign-b. ments/tasksMonitor and oversee the conduct of team activitiesc. Clarify directions set by the Chaird. Resolve issues elevated by teame. Present, with the LCE, the Draft CDP or ELA to the SB/P and to other stakeholders f. Ensure adherence to the work plan g. Motivate the teamh.

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What is the role and function of the Secretariat?

Prepare the materials in connection with the presentation of the Work Plan and Bud-a. get to the LCE and the SB/P; Monitor the implementation of the approved work plan and budget;b. Provide the LCE/LDC Chairperson the recommendations necessary for the eff ective c. management of the Planning Team and its activities;Elevate to the Chair/Vice Chair any unresolved problems and issues encountered by d. the Planning TeamEnsure the proper documentation and management of the Planning Team’s activities, e. working papers and outputs

What are the roles and functions of the planning team?

Prepare the CDP and ELA Work Plan and Budgeta. Gather and review available plans and other secondary data sources required in the b. development of the CDP and ELAPlan, coordinate and facilitate the conduct of various multi-stakeholder consultation/c. validation workshopsAssist the LCE in public hearings and other consultation sessions with the various d. LGU stakeholders and aff ected sectors like the LGU offi ces, LDC, Sanggunian and other sectoral organizationsAssist the LCE and the LDC in drafting and fi nalizing the ELA to include the 3-Year e. LDIP, the current year Executive Budget and the AIPDraft, package and fi nalize the CDP and ELA f. Prepare presentation materials for various audiences of the CDP and ELAg. Assist the LCE in his/her presentation of the Plan to various stakeholders h. Assist in organizing other planning sub-teams that may be required to carry out i. other planning activities such as communicating/popularizing the Plan, mobilizing resources, monitoring and evaluation

Figure 1.1 Structure of the Planning Team

Chair

Co-Chair

Secretariat

Sectoral Committee

Sectoral Committee

Sectoral Committee

Sectoral Committee

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Develop the Performance Management System for plan implementation j. Perform such other functions as may be required by the Local Chief Executive to-k. wards the completion, adoption, popularizing, implementing and monitoring the ELA

What is the Role of the SB/P in the plan formulation process?

The CDP and ELA embody the policies of the LGU. The Sanggunian, as the highest policy-making body in the LGU, needs to be involved more substantially in the planning process. Their involvement in the CDP or ELA will also result in the following benefi ts:

Firmer grasp of local development thrusts and prioritiesa. Better understanding of their role in steering the LGU into realizing its vision through b. appropriate legislative actionsHarmonization of executive and legislative actions towards a unifi ed set of goals and c. objectives for the LGU Shared responsibility and accountability for the CDP or ELA d.

The SB needs to perform the following roles:

Issue a Sanggunian resolution supporting the planning process;a. Review and approve the CDP and the ELA b. Review, prioritize and approve budget allocation for plan-based PPAsc. Identify and enact legislative measures to support and facilitate the implementation d. of the plan.

What is the role of civil society organizations (CSOs)?

The CSOs in ARMM, both organized and informal groups such as the datus and ulama are very infl uencial and have very strong potentials for supplementing or augmenting LGU eff orts in plan preparation process. They can:

bridge information gaps during plan preparationa. serve as monitors for CDP or ELA implementation and provide LGU decision–mak-b. ers unfi ltered information assist the LGU eff orts in communicating and disseminating information on the CDP c. or ELA rally support for CDP or ELA implementation especially on programs which are heav-d. ily dependent on citizen participation and cooperation augment the various resources and expertise required in CDP or ELA preparation and e. implementation link the CDP or ELA implementation with various resource organizations. f.

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1.3 TRAINING THE PLANNING TEAM

Whether the planning team members have had previous experi-ence or not, training should be undertaken prior to the start of plan preparation.

Why is there a need for training?

For an LGU that will be doing a CDP or ELA for the fi rst a. time, the training will enable the members to:

have an appreciation and clearer understanding of the • simplifi ed sectoral and ELA planning process, as well as the requirements for and implications of the plan preparation exerciselearn from some of the experiences in the past plan • formulation exercises, so that they can adopt the good practices and avoid the pitfalls that others experi-encedappreciate new development paradigms and frame-• works that will provide the proper perspective in plan-ning. This will include among others the following: sustainable development, confl ict sensitive and peace promoting planning, poverty, gender and develop-ment

For an LGU that had previously undertaken the CDP or ELA, b. the training is an opportunity for both old and new members to be introduced to the simplifi ed sectoral plan and ELA preparation process as well as to gain updates on planning concepts and tools and new/emerging development issues and trends.

There are two possible approaches in training the Planning Team, the choice of which will depend on whether the team has undergone a previous CDP or ELA formulation exercise or not. The session fl ow for the training incorporating said approaches are contained in Figure 1.2.

The indicative content of the Training and Planning Workshop for the Planning Team is attached as Annex 1.1.

1.4 CONDUCTING PRELIMINARY WORK

The planning team needs to undertake preliminary work prior to the start of plan formu-lation, to make the process run smoothly and effi ciently. The team’s action will be shaped by two major scenarios:

Box 1.4Benefi ts of Training Elective

Offi cials: The Case of Upi, Maguindanao

In August 2001, a month after new-ly elected local chief executives have been sworn into offi ce, a training program on Local Chief Executive Development Management Program (LDMP) was provided by the LGSP for selected regions of the country including the ARMM. The program was essentially on new develop-ment paradigms, strategic thinking, planning, and target setting. It is in this training

The training proved very valuable for the newly elected mayor of Upi, Maguindanao, Mayor Ramon A. Piang, Sr. Looking back at the experience, he said “…the training provided me with tools that are necessary to manage my municipal-ity effectively.” Going through the planning workshop from situation analysis, goal formulation, strategy identifi cation to the identifi cation of programs and projects proved to be effective in building the capacities of elective offi cials.

Three years on, the mayor was given several awards for effective management of his municipality, including the Local Government Leadership Award.

Taking off from the gains of the LDMP, LGSPA also conducted Lead-ership Development and Manage-ment courses for LCEs and Legisla-tors in the light of ELA formulation and implementation.

24

If the LGU does not have a a six-year CDP, the logical starting point for the team is to • develop one. Once the CDP is developed, then the team can proceed with the prepara-tion of the ELA. If the LGU has an existing CDP, the team needs to evaluate implementation (see Chap-• ter 5 Monitoring and Evaluation) and update the plan before the team can proceed with ELA preparation.

Figure 1.2: Session Flow of the Training and Planning Workshop

Leveling of Expectations

Work Planning

LCE & SB Hour

CLOSING

Reviewing past plan formulation experiences

Understanding the Planning Process

Organizing the Planning Team

Understanding the Planning Process

Team has previous CDP/ELA

25

Once the group has considered this critical aspect, they can proceed to the next stage of work planning. Depending on the LGU scenario, activities to be undertaken by the team will diff er.

Work Planning

Developing a work plan as a team is crucial to meeting the deadlines for plan formulation. Planning is a tedious and time-consuming process and the group can be easily bogged down by other LGU con-cerns and tasks on hand, thus the necessity for a work plan. The work plan basically helps the group manage their time and resources prop-erly. Early on they have to agree on the diff erent activities that will be undertaken, timetable, responsibilities and resources needed. Once it is fi nalized, this should be presented to the LCE and the Vice-LCE for approval. Support from the LCE and the Vice-LCE is crucial so that planned activities are given due importance. A Work plan template is found in Annex 1.3.

The timetable should be properly synchronized with the budget cycle in order for priority programs and projects to be integrated in the budget.

Box 1.5Formulating the CDP and ELA

It is highly benefi cial for the LGU that a six-year CDP be prepared to coincide with the medium-term development plan of the na-tional government and to ensure the continuity of programs and projects having timeframes longer than the term of offi ce of local elective offi cials.

The medium term CDP then becomes the starting point for the development of the term-based ELA.

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Formulating the Plan Plans at the local level should be developed in an integrated manner

so that they work towards the attainment of desired results. Ideally, the Comprehensive Land Use Plan (CLUP), which provides a long

term guide to the management of the locality, is developed prior to the preparation of the CDP which presents the sectoral directions for the LGU. The CDP then becomes the starting point in the development of the ELA.

Planning at the local level is a results-oriented process, which starts with the diff erent stakeholders coming together to take part in the formula-tion of a vision for their LGU. The vision becomes the driving force that guides the formulation of the various local plans, from the CLUP to the CDP and the ELA.

Chapter 2 of the manual discusses in detail the process of developing the CDP and the ELA.

2.1 THE CDP AND ELA

The Comprehensive Development Plan (CDP) is one of two plans that LGUs are mandated to prepare to promote the general welfare of its con-stituents. It is a multi-sectoral plan that embraces six development sectors namely: social, culture and peace2, economic, physical, environmental and institutional. The six development sectors and their sub sectors are found in Table 2.1 below. The multi-sectoral character of the plan allows easy integration of all existing topical and thematic plans required by National

2 A sector on Culture and Peace has been added to the traditional fi ve development sectors recommended by the DILG in the RPS to give due recognition to the role of the sector in ARMM .

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Government Agencies (NGAs) such as Disaster Management Plan, Local Poverty Reduc-tion Action Plan (LPRAP), Integrated Area Community Public Safety Plan (IACPSP), Local Council for the Protection of Children (LCPC 4 gifts for children), among others.

The Executive-Legislative Agenda (ELA) is the term-based component of the CDP. It contains the priorities of both the executive and legislative departments of the LGU dur-ing their term of offi ce. Most of the priority programs, projects, and legislative measures in the ELA are already identifi ed in the CDP. However, it does not limit the executive and the legislative offi cials from identifying new programs, projects and legislative require-

Sector Subsectors

Social Development EducationHealthSocial welfareHousing

Culture and Peace ArtsCultural heritageSports and RecreationPublic orderHuman security

Economic Development Primary IndustriesAgriculture (including livestockFisheriesForestrySecondary IndustriesMiningQuarryingManufacturingConstructionTertiaryWholesale and retail tradeService sector (i.e. banking)

Infrastructure IrrigationPowerRoads, bridges, portsFlood controlWaterSewerageTelecommunications

Environment LandWaterAirWaste management

Institutional Local government managementGovernance

Source: Compiled from multiple sources

Table 2.1: The Six Development Sectors of ARMM

29

ments that respond to new situations and take advantage of opportunities in its con-stantly changing environment.

The recommended timeframe for the CDP is six years for two reasons, namely: (1) to coincide with the plan of the national government (i.e. Medium Term Philippine Devel-opment Plan) and (2) to ensure continuity of funding for programs and projects that go beyond the term of offi ce of elected local offi cials. On the other hand, the ELA’s time-frame is necessarily three years to coincide with the term of offi ce of elective offi cials.

2.2 LEGISLATION AND POLICY ISSUANCES ON CDP AND ELA

Several important legislation and policy issuances support the development of the CDP and ELA. These are discussed below:

Local Government Code

The LGC of 1991 mandates local governments to prepare two types of plans namely the comprehensive land use plans and the comprehensive multi-sectoral development plans. Under Section 106 of the Code, the Local Development Councils of the respective LGUs are tasked to initiate the formulation of said plans and approved by the sanggunian.

Further, the Code mandates LCEs to:

“present the program of government and propose policies and projects for consider-• ation of the sanggunian bayan…”(Sec 444 1iii)“Initiate and propose legislative measures to the sanggunian…”(JMC 444 1iv)•

These provisions of the Code serve as legal basis for the development of the Executive-Legislative Agenda, which serves as the term-based plan of the LGU. DILG-NEDA-DBM-DOF JMC 1, s 2007

The Joint Memorandum Circular (JMC 1-2007) jointly issued by four oversight agen-cies namely the DILG, NEDA, DBM and the DoF provided measures to strengthen the interface between LGUs and the national government agencies as well as the comple-mentation between and among diff erent levels of local governments from the provincial down to the barangay levels. Ito also provided guidelines to strengthen and synchronize planning and budgeting at the local level.

Details of the JMC are further discussed in relevant sections of the manual.

30

2.3 THE CDP AND ELA FORMULATION PROCESS

The formulation of the CDP and ELA is an iterative and integrated process that involves the performance of a series of steps. The sequence of steps identifi ed in the process are all critical in coming up with plans that are results oriented, thus the need to treat all the steps with equal importance. Developing the CDP and ELA can be an overwhelming task and is not easy, but following the recommended process will help ensure that programs and projects identifi ed have more chances at being funded and implemented. It is sen-sible for the team to be guided by the timetable in the work plan to ensure that all the steps are carried out with the same attention.

Table 2.2 presents the holistic scene that LGUs may go through if they are to develop plans that are results oriented. It summarizes the necessary inputs needed in order to undertake the steps to produce the outputs (CDP and ELA). Inputs are the necessary data and information needed to undertake the steps. Steps are actions undertaken that make use of the inputs to produce the elements of the CDP and the ELA (Vision, Mis-sion, Goals, etc). A template that can aid the planning team in developing and aligning the diff erent elements of the plan is found in Annex 2.3.1.

The CDP should be developed prior to the ELA for the following reasons:

to coincide with the medium-term development plan of the national government• to ensure the continuity of programs and projects having timeframes longer than the • term of offi ce of local elective offi cials

The process utilizes participatory and consultative approaches. While a planning team is formed by the LCE, mechanisms that facilitate collective planning and decision making among the diff erent stakeholders need to be identifi ed and harnessed.A simplifi ed view of the CDP formulation process is shown in Figure 2.1.

In developing the CDP and the ELA, proper timing is critical to maximize the likelihood of the plan being implemented. The recommended timetable for undertaking the diff erent activities required for plan formulation as defi ned in DILG-NEDA-DBM-DOF JMC is:

Updating of planning database (January-March of every year)• Analysis of Planning Environment (April-May of every year)• Formulation of Development Vision, Goals and Strategic Direction (First week of July • 2007 and every 3-6 years thereafter)Identifi cation and Prioritization of PPAs (July of every year)• Identifi cation of areas of complementation of PPAs (July of every year)• Budget Preparation, Authorization and Review (July to December)•

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Table 2.2 The CDP and ELA Process

INPUTS STEPS OUTPUTS

Vision elementElement descriptorsSuccess indicators

FORMULATION OF VISION & MIS-SION STATEMENTS

Vision & Mission Statements

Vision StatementEcological profi le/SEP Local Development IndicatorsLGPMS-SLGR CBMS

DETERMINATION OF VISION – REALITY GAP

Vision – Reality Gap

Vision – Reality Gap FORMULATION OF SECTORAL GOALS AND OBJECTIVES

Sectoral Goals and Objectives

SWOT/Streams Analysis FORMULATION OF SECTORAL STRATEGIES

Sectoral Objectives Strategies

Sectoral Goals, Objectives and TargetsCLUP PoliciesSectoral Strategies

IDENTIFICATION OF PROGRAMS, PROJECTS, ACTIVITIES (PPAs), LEGISLATIVE REQUIREMENTS

Comprehensive Development Plan

Comprehensive Development PlanFinancial AnalysisTime and Resource Constraints (3-year term)

PRIORITIZATION OF PROGRAMS, PROJECTS AND ACTIVITIESPRIORITIZATION OF LEGISLATIVE REQUIREMENTS RANKING AND MATCHING OF RANKED PPAs WITH AVAILABLE FUNDS

Executive and Legislative Agenda (ELA)Local Development Investment Program

32

FORMULATION/REVISITING OF VISION & MISSION STATEMENTS

DETERMINATION OF VISION –REALITY GAP

FORMULATION OF SECTORAL GOALS AND OBJECTIVES

FORMULATION OF SECTORAL STRATEGIES

IDENTIFICATION OF PROGRAMS, PROJECTS, ACTIVITIES AND LEGISLATIVE REQUIREMENTS

PRIORITIZATION OF PROGRAMS, PROJECTS, ACTIVITIESS AND LEGISLATIVE REQUIREMENTS

IDENTIFIED IN THE CDP

6 – YEAR CDP

3 – YEAR ELA

Figure 2.1 Simplifi ed CDP and ELA Process

2.4 INTEGRATING PLANS

Developing the CDP is not an isolated and straightforward undertaking, but must consider other factors. In the Philippines, a complementary approach to planning that combines top-down and bottom-up methods is utilized. Higher level plans provide indicative guidelines for lower level plans in order to harmonize eff orts towards common national goals. This means that the Comprehensive Development Plan of a municipality or component city must consider directions provided by provincial plans (e.g. Provincial

33

Development and Physical Framework Plan). Likewise, provin-cial plans must take into account regional plans (e.g. ARMM Regional Executive and Legislative Agenda, Halal Food Indus-try Masterplan).

Similarly, lower level plans (barangay development plans) can also be aggregated at the municipal or city level to form the CDP. While this is ideal, this is diffi cult to do since this neces-sitates that all barangay plans are completed before integra-tion is done at the municipal or city levels. Taking into account higher level plans can be very advanta-geous for the LGU since it can increase the likelihood of the projects being funded through other sources.

Integrating lower level plans is further discussed in relevant sections of the manual.

2.5 UPDATING THE CDP AND ELA

At the minimum updating the CDP and ELA should be done every three years as soon as the new set of LGU offi cials are sworn in and the LDC has been reconstituted. This is an ap-propriate time to re-examine the existing CDP and revisit the strategic directions (Vision, Mission, Goals, Objectives, Strate-gies) and take stock of what has been achieved by the previous administration.

Evaluation reports (e.g. State of Local Governance Reports) prepared by the previous administration contain useful infor-mation that are benefi cial in revising and updating the CDP and ELA. The information allows the planning team to identify the extent to which the objectives of the CDP and ELA have been achieved or whether the plan has eff ectively addressed the needs of the citizens.

Basically, updating the CDP and ELA go through the same process as illustrated in Fig-ure 2.1 above. Some useful questions and recommendations that can assist the team in updating the plans are enumerated:

What has been achieved by the previous administration? What are the signifi cant • changes in LGU situation?What is the existing situation? Are there new issues/problems faced by the LGU? Inte-• grate pressing issues into the new CDP.Is the vision still relevant or is there a need to revise the statement?•

Box 2.1Calanogas, Lanao del Sur’s Poverty Reduction Thrust:

Working Hand-in-Hand with National Government

Taking its cue from the poverty reduction thrust of the Philippine government, the Calanogas, Lanao del Sur CDP and ELA identifi ed and prioritized programs and projects that directly address the problem. The said plans have been for-mulated in line with the Medium Term Philippine Development Plan (MTPDP) as well as it’s regional and provincial counterparts.

In Calanogas, Lanao del Sur, 50% of households live below the poverty line. Poverty is likewise compounded by the lack of access to basic social services like safe water supply and sanitary facilities. Corollary, there is high incidence of malnutrition among children.

The plan recognizes that poverty reduction can only be achieved with the concerted efforts of the local and national government in partnership with all sectors of the community including foreign insti-tutions. The CDP and ELA enunci-ate that to address the problem of poverty, development programs and projects should be initiated by the LGU in partnership with other development partners.

34

Have any of the earlier goals and objectives been met? Are there new goals and objec-• tives for the LGU?Have the strategies been eff ective in meeting the desired results? If not, is there a • need to change strategies?What programs and projects identifi ed in the previous CDP and ELA were not imple-• mented? Why they were not implemented?What are the new priorities of the incumbent? It is prudent to incorporate programs • and projects that have been part of the campaign platform of newly elected offi cials.

2.6 FORMULATING/REVISITING THE LGU VISION AND MISSION STATEMENTS

What is a Vision?

The CDP process begins with the development of a vision statement. A vision is the driving force be-hind an organization. It is the stakeholders’ shared image of the LGUs future. As such, a vision serves as an inspiration and a guide to action. The vi-sion keeps the LGU in its course despite changing demands of constituents and shifting political and economic forces.

It is a desired state or scenario of the LGU and its people. It describes what the LGU wants to become or where it wants to go. It answers the question: How do you see your LGU in the future?

What is a good vision for a local government unit?

A good vision statement of an LGU refl ects its desired role or the best contribution it can make to the development of the nation. In short, the LGU vision should not deviate from, but rather, should be a local variation of the very aspiration of the national government that LGUs as political and territorial subdivisions attain their fullest development as self-reliant communities and become eff ective partners in the attainment of national goals (Sec. 2, a. RA 7160). A good vision statement should possess the following characteristics:

Achievable. a. Though a vision is ambitious, it certainly must be achievable or well grounded on reality.Inspiring. b. It should encourage commitment and inspire enthusiasm. A good vision should be powerful and compelling. The people concerned can relate to it and work hard to achieve it. It should be a driving force even at trying times and should capture the imagination, engage the spirit and inspire performance.Easily understood.c. It uses simple language and presented in a manner that every member of the organization/community can recall.

Box 2.2Formulating the Vision

A vision should be as vivid as possible, so that it can serve as an inspiration as well as a challenge for all stakeholders.

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Distinctive. d. It should build on the distinct character of the LGU, i.e., Marikina City as a river city so its vision highlights river resource for future development.Complementarity.e. Neighbouring LGUs should have complementary not competing visions, i.e., municipalities along the same zone do not all have to serve as ports. Shared. f. A widely shared vision is the most powerful engine that drives people to progress. It serves as the driving force that moves and guides the entire community toward the achievement of common development direction. More importantly, a widely-shared vision enables the LGU to present a picture and articulate the kind of future it prefers for its people as individual citizens and as a community, the economy, the natural and built environment, and the local leadership/governance (see Box 2.3 for an example of a widely shared vision).

Box 2.3Examples of LGU Visions

Confl ict Sensitive and Peace Promoting Vision

On top of the many possible aspirations that an LGU may have for their locality, a peace promot-ing and confl ict sensitive vision would show an LGU’s aspirations for genuine peace and human security, including the elimination of various forms of structural violence and cycles of violence in people’s lives. An example is the vision of Tulunan, North Cotabato:

“The LGU of Tulunan, envisions the attainment of an improved quality of life based on a viable economy, balanced ecology and sustainable integrated human development in the culture of peace and unity” (Source: Tulunan, , North Cotabato).

Turtle Islands, Tawi Tawi Vision: Ambitious yet Well-grounded

“We envision Turtle Islands’ Municipality as a model wildlife sanctuary and protected area, a world class eco-tourism haven, maintaining a well balanced ecological system, sustainably managed by active and em-powered constituents through good governance.”

The vision is defi nitely grand but absolutely based on the strengths of the municipality. The mu-nicipality is unique being the only nesting ground of the famous green turtle in the ASEAN region. Possessing rich marine life and coral reefs, unique scenery and exquisite wildlife certainly make it an ideal place for ecotourism.

Basilan’s Shared Vision that Recognizes Diversity

“If we do not know where to go, we will not know how to get there,” so goes the message of the gover-nor of Basilan to her constituents.

The vision statement of the Province of Basilan reveals the collective aspirations of its people for a future that recognizes the diversity of cultural practices, values and behaviour and the need to preserve them. To wit:

“A peaceful and progressive province, a center for commercial crops with a developed and sustained marine industry, in a sound and ecologically balanced environment, improved quality of life, diversifi ed and pre-served culture, empowered citizenry, steered by committed, transparent, accountable leaders and supported by a responsible bureaucracy” (Basilan CDP-ELA 2007-2010).

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How is a vision developed?

There are no hard and fast rules in determining the process for crafting a vision statement. How-ever, a rational and simplifi ed way that could also facilitate the subsequent plan formulation steps is suggested below:

Elaborating on each of the element by assigning a. adjectives or descriptors to describe the most desired end-state scenario for each sector Identifying the success indicators corresponding b. to the adjectives identifi edFormulating the vision statement using the cho-c. sen adjectives or descriptors.Crafting the fi nal form taking into consideration d. the characteristics of a good vision statement.

To foster shared ownership of the vision, a visioning exercise may be undertaken through a workshop involving the participation of diff erent stakeholders. A step-by-step guide to a visioning exercise is presented in Annexes 2.1.1 and 2.1.2.

Why is there a need to align vision statements?

For consistency and unity of direction, a barangay needs to align its vision to the mu-nicipality or city of which it is a part of. It is for this reason that a municipality/city needs to inform its component barangays about its vision. This provides some clue for the barangay as to its contribution to the development of the municipality. At a higher level, eff orts should also be exerted to link the municipal visions to that of the province.

Box 2.7Types of Vision Statements

A Comprehensive Vision Statement We envision Hadji Mohammad Ajul Municipality to be a dynamic spot in eastern Basilan for agro-fi sh-ery, commerce and tourism industry, with the necessary social services that can provide a high quality of life for its citizens living in a wholesome environment with suffi cient infrastructure and effi cient services led by a responsible and progressive government and administration (Source: 2007-2010 CDP and ELA of Municipality of Hadji Mohammad Ajul, Basilan).

A Slogan-type Vision statement

A Municipality whose citizenry collectively work for peace towards a progressive community (Source: Municipality of Buldon, Maguindanao).

Box 2.6 Tips in Crafting the Vision

In crafting the fi nal form of the vision statement, the LGU may consider between a style that is:• comprehensive - includes all the

vision elements. • slogan-type - a brief attention

getting phrase that stakehold-ers can easily recall and identify with.

• combination - contains a short attention getting phrase and an explanation of the vision ele-ments.

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What is a Mission?

A mission is sometimes referred to as the “purpose.” It de-scribes the general thrust of the LGU. It provides a clear view of WHAT the LGU is trying to accomplish for its constituents or clients and HOW it can be attained. It evolves out of the pro-cess of bringing the vision into focus. The mission for an LGU can be derived from its mandate which is defi ned in the general welfare clause (Section 16 of the Local Government Code).

Thus a mission statement:

is anchored on its vision;a. refl ects what the LGU seeks to do or accomplishb. communicates and identifi es the purpose of the LGU to all it c. stakeholders.

Why is a Mission Statement Important?

A mission statement is important because it can set the direc-tion for the LGU, providing the focus and guidance needed. It can be used for evaluating the performance of the LGU.

Trigger Questions for Formulating a Mission Statement

What is the purpose of the LGU?• What is the LGU trying to accomplish?• Who are the constituents it aims to serve?• How can it attain its purpose?•

It is essential to have the vision and mission of the LGU widely known and understood by the public. They have to be cascad-ed down to the lowest member of the organization and commu-nicated to as wide an audience as possible.

2.7 DETERMINING THE VISION-REALITY GAP

Analyzing the LGU Situation

Once the vision/mission statements have been formulated, the next step is to conduct an assessment of the local situation as a prerequisite to the vision-reality gap. Given that planning is a rational act that seeks to respond to the uncertainties of the future, the importance of information as well as the ensuing analysis and interpretation could not be overemphasized. Building up the LGU database is important for evidence-based

Box 2.8Confl ict Sensitive and Peace

Promoting Mission

A confl ict sensitive and peace promoting mission would outline an LGU’s concrete role in forging peace and human security, reduc-ing structural violence and ensur-ing that its strategies and programs do not become sources of confl ict in their respective localities.

Sumisip, Basilan Mission:Achieving the Purpose through

People Participation

“To work together to develop agro-fi shery resources by providing, improving and strengthening vital infrastructures and support facilities through active participation of the people in the process of development and the promotion of Peace and Unity, implement viable economic and sound environmental programs, effective basic social services, and en-hancing capacity towards an effective and effi cient governance” (Source: Sumisip, Basilan).

The mission statement presents a clear and concise statement of its purpose as an LGU. It commu-nicates what it intends to accom-plish for its citizens and how it is going to do it.

38

planning. Hence it requires giving attention to the wealth of information that is present in the LGUs’ information base. The most common type of data-base is the socio-economic profi le (SEP) and the ecological profi le that are further processed to yield a situational analysis and a better understanding of the planning area.

The Socio-Economic Profi le and Ecological Profi le

The Socio-economic Profi le (SEP) serves as the most important information base for the CDP. It provides a snapshot or profi le of the area at a given point in time. Data are presented with minimal analysis and interpretation that lends the SEP to analysis by various groups according to their own purpose,

The Ecological Profi le, on the other hand, is an expansion of the SEP, which gives due recognition and proper space for the bio-physical and ecological features of the area. It covers the fi ve development sectors, namely: social services, local economy, en-vironmental or bio-physical base, infrastructure and institutional capacity of the LGU.

Ecological profi ling and situational analysis are necessary in order to help the LGU determine the services needed by its constituents, the resources required, and the environmental factors in which policy is expected to bring about changes.

Plan formulation can also benefi t from the wealth of data that are already gathered by the LGU using any of the following tools:

Minimum Basic Needs (MBN) a. Community-Based Monitoring System (CBMS) b. Integrated Rural Accessibility Program (IRAP) c. Local Governance Performance Measurement Systems (LGPMS) and the State of Lo-d. cal Governance Report (SLGR)

These tools can provide a good database from which a situationer on the problems, issues, concerns and constraints facing the LGU can be drawn. If existing data are not suffi cient to a give clear picture of the current situation of the LGU, the LPDO may have to gather additional primary data.

Box 2.11Examples of ARMM Mission

Statements

Promote peaceful, united and coopera-tive community and provide equitable and integrated services for the improvement of the people’s quality of life under participatory Islamic gover-nance (Source: Lamitan City)

To attain a sustainable economy through the implementation of an effective development plan, aimed at providing agricultural and indus-trial stability, preservation of culture and heritage, balanced eco-system, intensive services to the people, and advocate culture of peace (Source: Ungkaya Pukan, Basilan).

Eradicate poverty through balanced economy, working with its God-fearing populace mindful of their responsibili-ties towards environmental friendly and balance ecology, ensure healthy and epidemic-free community through effective mobilization of social ser-vices, and enhancing its indigenous cultural heritage through multi-sectoral partnership (Source: Sitangkai, Tawi-Tawi).

39

For LGUs with strong poverty focus, the CBMS can be very helpful and can be used by local government units in the for-mulation of their CDP and ELA. Additionally, the tool can also be used to track the eff ectiveness of interventions of the LGU.

The CBMS covers 14 core local indicators that measure the diff erent dimensions of poverty (See Annex 2.2.1 for the CBMS Indicators and their defi nitions). In particular, CBMS intends to provide information showing the extent of poverty in an area and in determining the root causes.

The CBMS generates household level data that are useful particularly in poverty diagnosis and planning. CBMS provides a profi le of the poor families and communities in the locality such as who they are, what their needs are and where they are. By having adequate understanding of the locality’s poorest families, the local government can develop and implement policies, programs and projects that directly address the needs of the poor and undertake more focused targeting in deliver-ing services. Similarly, CBMS can be a useful guide to higher level governments, i.e. provincial and national governments, in developing, locating and implementing pro-poor programs at the lowest geopolitical unit.

If local plans are intended to address the problems of poverty, it is incumbent upon the LGU to undertake CBMS on a regular basis (every three years).

The application of CBMS data is presented in relevant sec-tions of the manual.

Who is responsible for ecological profi ling and situational analysis?

By virtue of its functions under the Local Government Code, the Local Planning and De-velopment Coordinator is responsible for preparing the LGU Profi le and for spearhead-ing the analysis of data gathered. He/she, however, shall harness the support of all LGU departments/ offi ces/ units, including national government agencies operating within the locality, in providing data, information and statistics pertaining to their respective sectors. The planning team, once organized, should take off from the wealth of informa-tion that are being maintained in the LPDO.

How can the existing database be maximized in analyzing the local situation?

To make the existing information base more useful for more dynamic planning activities, an intermediate analytical tool can be applied, which will also lead to building the data-base for planning of LGUs. It is called the Local Development Indicator (LDI) system, a

Box 2.11Examples of ARMM Mission

Statements

Promote peaceful, united and cooperative community and provide equitable and integrated services for the improvement of the people’s quality of life under participatory Islamic governance (Source: Lamitan City, Basilan)

To attain a sustainable economy through the implementation of an effective development plan, aimed at providing agricultural and industrial stability, preservation of culture and heritage, balanced eco-system, intensive services to the people, and advocate culture of peace (Source: Ungkaya Pukan, Basilan).

Eradicate poverty through bal-anced economy, working with its God-fearing populace mindful of their responsibilities towards environmental friendly and bal-ance ecology, ensure healthy and epidemic-free community through effective mobilization of social services, and enhancing its indig-enous cultural heritage through multi-sectoral partnership (Source: Sitangkai, Tawi-Tawi).

40

table that organizes LGU information in three dimensions, i.e. temporal, spatial and sec-toral. As such, the LDI facilitates analysis of data allowing the process of making further observations and projecting the implications of these observations in terms of issues.

a. Temporal or time dimension

This presentation of data allows an in-depth characterization of the area (municipality or city) being planned by tracking the changes in certain attributes over time. Analysis can be done for example, by looking into the growth trend in population for a number of years and the average growth rate for a specifi c period of time.

b. Spatial or geographical dimension

This set of data shows the diff erences between areas with respect to a given set of charac-teristics such as between the planning area and the larger areas within which it is located (i.e. municipality in relation to the province); and the planning area with its smaller component parts (i.e., municipality vis-à-vis its component barangays). For example, the extent of the area and population density (number of people over land area) are among the indicators by which spatial or geographical dimension can be applied in making deci-sions on extent of services/inputs to be provided by the LGU to particular areas.

c. Sectoral dimension

This presents the database according to the fi ve identifi ed sectors, namely: social, eco-nomic, environment, physical/ infrastructure, and institutional. The sectoral presenta-tion of data off ers the following advantages:

Information that are available are organized by sector and are translated into relevant • set of indicators that are standardized to allow benchmarking and updating over a period of timeThe LDI matrix is very fl exible as it can accommodate additional indicators that need • to be considered in planning. Since it covers all six development sectors, it has the potential to cover all development concerns. The CBMS and LGPMS indicators for example, can be integrated into the LDI matrix and made more useful for planning purposes. In the same light, the indicators that have been identifi ed by the 2005 Phil-ippine Human Development Report (PHDR) that have signifi cant impact on armed confl ict can be included in the LDI matrix.NGAs can concretely assist LGUs in the collection, organization and analysis of the • data that are of their particular concern. The range of their assistance to LGUs can in-clude data disaggregation, processing and analysis. Indeed, the NGAs can help LGUs augment the LDI database by sharing with them indicators they have generated from their monitoring services and disseminating the results of special studies they have conducted that may be useful at the local level.

As mentioned, the LDI table helps LGUs to classify and analyze information. Annex 2.2 illustrates how the indicators related to social and economic development sectors are organized using the LDI format.

41

How is the LDI different from the SEP?

The LDI format generally adopts the same thematic or sectoral headings used in the SEP or the Ecological Profi le. These headings include population and social services, local economy, environment and natural resources, physical infrastructures and local institutional capabilities. The LDI is an attempt to process data presented in the SEP or the Ecological Profi le into useful information or indicators that are relevant to local planning. The LDI matrix is however by no means exhaustive. In fact, the diff erent indicators that national agencies require LGUs to consider through the various programs such as the National Anti-Poverty Commission’s (NAPC) core local poverty indicators (derived through the CBMS), the MDGs, or the localization of PA 21 can be entered com-pletely into the LDI matrix.

Data that need to be plotted in the LDI table may require some basic techniques to objectively determine the issues and gaps by sector. Population projections and thresh-old analysis tools for example can be found in the DILG’s RPS, Chapter 3, pp. 53-70, and NEDA’s Provincial and Local Planning and Expenditure Management Manual, vol. 2.

For LGUs that are confronted with poverty and armed confl ict issues, the following inter-related set of indicator systems would be useful to incorporate in the LDIs.

a. Vulnerability to Armed Confl ict Indicators

Indicators that have been found by the PHDR (2005) to have a signifi cant impact on armed confl ict such as adult illiteracy rate, disparity in access to convenient water source, access to electricity, minoritization and per capita income of the third quintile have to be closely monitored for local planning. b. Core Local Poverty Indicators (or CBMS indicators)

As mentioned, the CBMS produces the core local poverty indicators that allow LGUs to assess the poverty situation in their locality. The CBMS indicators can be used to ensure that plans are pro-poor in the following ways:

Status of Well-being of the Population. The CBMS adopts either output or outcome in-• dicators such as child morbidity rates, malnutrition rates, educational attainment and participation rate. These indicators can provide a direct, more accurate and meaning-ful measure of well-being. CBMS-generated data can guide the LGUs in their decisions to address poverty by developing specifi c interventions for identifi able target benefi -caries in particular locations. Disaggregated data on poverty at individual and household levels. CBMS data can be • useful in making comparison of an LGU with other similarly-situated LGUs with re-spect to certain indicators or attributes, i.e., municipality with higher and/or lower level LGUs. These information can be useful target setting.Input to social clustering of population. The CBMS is useful in describing the popu-• lation at the individual and household level particularly in terms of certain patterns

42

of poverty and the causes using a set of poverty indicators. The indicators related to income for example can contribute to the social clustering of the population based on household income. Households identifi ed with very low incomes can thus be identi-fi ed and its implication ascertained, in terms of the potential extreme polarization of the local space and society if left unaddressed.

c. The Local Governance Performance Monitoring System

The LGPMS is a self-assessment tool that helps LGUs manage its performance. This web-based database system provides both qualitative and quantitative information on an LGU in fi ve performance areas, namely: governance, administration, social services, economic development and environmental management. Arranged by sector or service area, the LGPMS indicators present a straightforward picture of the condition in the locality which helps in the objective assessment of the LGU situation.

A salient feature of the LGPMS is its ability to capture data across LGUs nationwide thus allowing them to quickly assess their performance relative to the others. The tool has the capability to process data inputs and generate tabular and graphical reports that provide useful information for local planning. The State of Local Governance Report of an LGU crystallizes the LGPMS results and analysis and is an import ant reference for planning.

A good understanding of the LGUs performance in these fi ve areas can help the planning team identify interventions that need to be prioritized by the LGU. More importantly, LGPMS data can add qualitative dimension to the statistical data in the ecological profi le.

What tool can be used in analyzing sectoral concerns and issues?

Problem Analysis

Problem analysis is a useful tool in further analyzing the issues and problems that need to be addressed in the locality. It utilizes the information derived from the database and the local development indicators (LDI) that have been aptly organized for planning purposes. A list of issues and concerns are identifi ed and from these, key issues can be generated that are to be addressed in the CDP. The output of the problem analysis pro-vides the basis in determining relevant programs, projects, policies or legislations that will respond to the identifi ed key issues and concerns.

The Problem Tree is a visual representation of how problems are linked and inter-related in a situation. It defi nes which appear to be cause and eff ects of an identifi ed core prob-lem and the other problems that appear to result therefrom. The depth of the analysis, however, depends on the availability of accurate data and information.

The series of “problem trees” summarizes the issues and concerns, problems and con-straints identifi ed in the sectoral and inter-sectoral workshops. The problems are or-ganized into cause-eff ect relationships with the lower boxes representing the causes (“roots”) and the boxes above are eff ects (“foliage”). All problems and issues are present-

43

ed from the perspective of the local government (institutional sector) making it easier to identify the appropriate intervention measures.

The step-by-step guide to undertaking a problem analysis workshop is shown in Annex 2.3.

Poverty Diagnosis

Poverty diagnosis is used as analytical tool to assess the poverty situation in an LGU. The process makes use of the problem tree. Problem trees are drawn up for each of the 14 local poverty indicators to identify the underlying causes of poverty and present alternative solutions to each of these causes. The same process in problem analysis may apply in understanding the cause and eff ect relationships of poverty issues.

Confl ict Analysis

To gain a better understanding of the local situation in confl ict-prone areas, a confl ict analysis needs to be conducted. Existing LGU data from the CBMS, LGPMS or other re-lated data sets of the LGUs as well as local knowledge are tapped to get a comprehensive picture of confl ict issues in the community, including the profi le, causes, stakeholders and dynamics of the confl ict. Confl ict analysis establishes how various local stakehold-ers are contributing to violent confl ict and structural violence. Additionally, it provides a snapshot of local initiatives that are addressing these confl icts. Some questions that can be asked include the following:

a. Confl ict and Stakeholders Profi le

What are the types of confl ict and stages of the confl ict being experienced in the area? • (history, how it developed, where is the confl ict, who are involved and what are their sources of power?) What are the causes of the confl ict? its consequences?Is there competition over resources? what kind of resource, who are the groups inter-• ested to have control of resource, how is the allocation of resources being done?

b. Opportunities and Mapping of Ongoing Initiatives

Is there a confl ict management and confl ict resolution mechanism in place?• What are other peace-building and confl ict prevention initiatives and how is it aff ect-• ing existing confl icts?

Analyzing the vision-reality gap

What is vision – reality gap analysis?

Vision-reality gap analysis (VRGA) is the process of determining the gap between the desired state of the area by sector, represented by the defi ned performance indicators and the current situation of the sector/s. Gap analysis shows how large is the diff erence between the vision or ideal state of the LGU and the existing situation.

44

Having established where and what the gaps are, the next step is to identify the nec-essary actions to close the gap. Gap analysis equips local policy makers with needed information to make informed decisions, especially in identifying priority areas for intervention.

How is vision–reality gap analysis undertaken?

Vision-reality gap analysis takes off from the results of the visioning exercise and the data generated in the problem analysis portion. The qualitative and quantitative data gathered can be transformed into scales against which targets can be set as the example in Table 2.3 illustrates.

Rating Interpretation

0 Absolutely nothing has been done about the goal

1234

Something is already being done to achieve the goal but the level of attainment is still on the low side

5 The goal is half accomplished

6789

Goal is more than half-fulfi lled but still short of full attainment

10 The goal is completely attained

N No data available

Table 2.3. Current Reality Rating Scale

From the vision desciptors and success indicators identifi ed in the visioning exercise, ratings can be assigned to describe the degree of attainment or non-attainment of a par-ticular vision element (see Table 2.4).

Descriptor Success Indicator Rating Explanation

Healthy citizens

Mortality rate of children under 5

8Under-fi ve mortality rate reduced by two-thirds from baseline

Maternal mortality rate 5 Maternal mortality rate reduced by half from baseline

Incidence of malaria 0 Nothing has been done about the goal

Table 2.4. Example of Vision-Reality Gap Analysis

Annex 2.4 illustrates the workshop activities to generate the Vision-Reality Gap.

45

Development Indicator and Indicator Performance Range

Performance Levels Development Planning

Implications

Example: Malnutrition rate of children 0-71 months old

0- 1 % of the total population Very High (5)Area to sustain

2-4 % of the total population High (4)

5-10% of the total population Medium(3) Benchmark = Area to watch

11-15% of the total population Low (2)Development concerns

16% and above Very Low (1)

Table 2.5 LGPMS Performance Levels and Implications to Planning

The LGPMS and the vision–reality gap analysis

Data from the LGPMS can provide the planning team with a good starting point for the vision-reality gap analysis. Several reports can be generated from the LGPMS that can be useful in gap analysis, such as the Single-Year Indicator Report and the Comparative and Trend Reports. The procedure for generating these reports is found in the LGPMS User’s Manual which can be easily downloaded through the internet.

A unique feature of the LGPMS is the application of performance standards for each indi-cator that are applicable and comparable across LGUs. LGPMS scale scores indicate the LGUs level of performance for each indicator. Scores range from one to fi ve with fi ve cat-egorized as “very high” performance level and one as “very low” performance level. Each performance level is also supplied with a corresponding color to allow users to identify at a glance the high and low performance areas. Table 2.5 depicts the scale scores and corresponding color assignments.

Each performance level has diff erent implications to local planning. A four and a fi ve indicates ‘high level development’ for a particular indicator. This means that LGU eff orts need to be sustained to maintain the high level of performance. On the other hand, a one or a two signify that LGU eff orts are inadequate, so that more interventions are needed to improve the situation.

The LGPMS can be used in vision-reality gap analysis in a number of ways. These are discussed below:

1. Using the Single Year Report

The Single-Year Report is the simplest use of the LGPMS in gap analysis. The following example illustrates how this is done. Table 2.6 below shows a single year LGPMS report for three selected development indi-cators. From this report, the planning team can determine which development indicator would be top priority for the LGU.

46

Development Indicator Value Performance Level Performance Description

Percentage of malnourished children aged 0-5 years old

2.83% 4 High

Percentage of households with sanitary toilets

67.40% 3Medium

(Benchmark)

Percentage of households with elec-tricity

27.73% 1 Very Low

Table 2.6: Using the LGPMS Single Year Report

The planning team can conclude from the data that interventions for malnourished chil-dren have been eff ective; since it shows a score of four and that they must be sustained to totally eliminate the current level of 2.83% malnutrition rate. Similarly, at a glance, the color red in the table shows that the “percentage of households with electricity” is a cause for concern at 27.73% and that LGU interventions are needed to improve performance.

In the same way, the indicator “percentage of households with sanitary toilets” at 67.4% falls within the performance benchmark. Again, the planning team is guided on what course to take for this particular indicator.

2. Using the Performance Area and Service Area Aggregated Report

From the individual indicator report, the LGPMS has the capability of aggregating re-sults from service area to performance area and performance index levels. This report allows LGUs to compare its performance level along the fi ve performance areas and iden-tify where performance gaps are highest which when addressed would improve the LGUs performance signifi cantly. The aggregated report on performance area and service area is presented in graphical (in a wheel report) and in matrix form. Table 2.7 illustrates how individual LGPMS performance levels are averaged to get the service area performance report using the matrix format.

Indicator (Health and Nutrition) Performance Level Service Area Aggregated Report

% Malnourished children 2

3.6

Infant mortality rate 5

Mortality of children 4

Mortality rate 3

Morbidity rate 4

Table 2.7: Interpreting the LGPMS Matrix

This report shows that malnutrition and mortality rates needs to be improved in order for the LGU to enhance its performance in health and nutrition. If the same process is applied to the other set of indicators, one can see, at a glance, service areas needing the most attention.

47

Service Area/Development Indicator

MY LGUMy

Province Average(27 LGUs)

My Class Average (3rd Class LGUs in Region – 6 LGUs)

Percentage of households with sustainable potable water supply

Rating=4 (88.74 %)

Rating=1.44 (37.72%)

Rating=1.83 (50.43%)

Percentage of households with sanitary toilets

Rating=3 (67.40 %)

Rating=1.67 (33.74%)

Rating=1.60 (41.57%)

Percentage of households with electricity

Rating=1 (27.73 %)

Rating=1.19 (27.55%)

Rating=1.67 (40.11%)

Table 2.8 Using LGPMS Comparative Performance

3. Using Comparative & Trend Performance The planning team can further extend the analysis of vision-reality gap by generating the LGPMS comparative and trend report for both the individual indicator and service area performances. This feature allows the LGU to benchmark with other LGUs.

As an example, in table 2.8 below, the LGU can compare its performance (or its reality) for three selected indicators under the service area of housing and basic utilities to the aver-ages of municipalities within its province and to other LGUs belonging to the same class.

In this example, the planning team can conclude that its LGU is way above in the de-velopment condition for the indicator on potable water supply and sanitary toilets compared to the averages of its province and class. On the other hand, the indicator on household with electricity shows the LGU lagging at 27.73%. However, the same concern is also felt with the rest of the province and the class of LGU. Simply put, electricity is a problem area not only for the LGU but for the entire province and region as well.

With the annual LGU data entry for its performance, the LGPMS database is built-up. The yearly data report in LGPMS can serve as basis for analyzing performance trends, as shown in Table 2.9 below.

IndicatorYear1

(2004)Year 2

(2005)Year 3

(2006)

Percentage of households with sus-tainable potable water supply

Performance Level=2 (64.00%)

Performance Level= 3 (72.40%)

Performance Level=4 (88.74%)

Table 2.9 Using LGPMS Performance Trends

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The Community-Based Monitoring System and the vision–reality gap analysis The CBMS provides a useful database for the planning team to consider in identifying priority areas for intervention and in undertaking the vision-reality gap analysis. To illustrate, Table 2.10 shows an example of CBMS results for the Municipality of Labo. Survey data clearly reveals areas where the municipality is faring well (i.e. housing) and lagging behind (i.e. water and sanitation). Looking at this data, one could already pin-point priority areas (i.e. water and sanitation) for the current planning period.

An edge of the CBMS is the presence of comparable data across the smaller spatial units (e.g. barangay) compared to the municipal average. With this information, the planning team can easily identify areas where interventions are most needed.

Health Proportion of child deaths 0.2

Nutrition Prevalence of malnourished children 8.8

Housing Proportion of households living in non-makeshift housing 94.5

Proportion of households who are formal settlers 95.6

Water and Sanitation Proportion of households with access to safe water supply 64.5

Proportion of households with access to sanitary toilet facilities 65.4

Basic education and literacy

Elementary school participation rate 79.6

Secondary school participation rate 67.5

Literacy rate 97.5

Income Proportion of households that eat at least 3 meals a day 97.6

Proportion of households with income above poverty threshold 32.2

Proportion of households with income above food threshold 48.2

Employment Employment rate 88.1

Peace and order Proportion of persons who are victims of crimes 0.6

Table 2.10: CBMS Scores, Municipality of Labo, Camarines Norte3

Source: CBMS Survey, Municipality of Labo (2003)

3 While a core set of indicators that captures the different dimensions of poverty are being recommended, the system is fl exible and allows for the inclusion of additional indicators that the LGU fi nds relevant to the locality.

An integral part of the CBMS is the use of GIS (Geographic Information System) maps that are easily understood and appreciated by the local offi cials and decision makers as well as non-technical members of the planning team. The maps provide a glimpse of the poverty situation of barangays in the municipality thereby making goal setting and targeting more straightforward. To illustrate, with the use of the map (see Figure 2.2), one can easily single out barangays with very low access to sanitary toilet facilities (i.e. Kabatuhan, Pagasa, Dumagmang, Maot, etc).

49

Figure 2.2: GIS Map showing access of households to sanitary toilets

Source: CBMS Survey, Municipality of Labo, Camarines Norte

Building-up the LDI Database

Building up the database is one of the most important activity in planning. Data from the various systems that have been discussed earlier can be entered into the recommended LDI matrix to make it more useful for planning. For example, the poverty indicators of the CBMS can be entered completely into the LDI template as shown in Table 2.11 below. The planning offi ces need to continually build up the LDI matrix as data becomes avail-able. The importance of developing the spatial and temporal dimensions of data is useful in developing plans that are needs based.

DATA/INFORMATION INDICATOR

GEOGRAPHICAL AREAS

REMARKSMunicipality Province

Barangays

Guitol Kabulu-an Rizal

Social Indicators

a. Percent of HH without access to sanitary toilets, latest

40.90 78.63 35.9 13.26

b. Proportion of children aged 6-12 years old who are not attending elementary school

30.28 80.34 11.79 25.17

c. Proportion of households with income below the poverty threshold

3.30 0.00 0.77 .67

Table 2.11: Local Development Indicators, Sta Elena Camarines Norte 2003

Source: Sta Elena, Camarines Norte CBMS 2003

50

What needs to be considered in conducting a Vision-Reality Gap Analysis?

• The process requires updated sectoral situationers supplied by the LPDO and NGAs. • This process can become highly subjective and intuitive, especially when it is done

through a participatory workshop. To lend a degree of objectivity to the process, LPDO and NGA representatives can help refi ne the process by making available their data holdings and thus allow a more fi ne-grained determination of the vision-reality gap for the sectors. The presence of a good LGU Ecological Profi le and LDI that incorporates or closely linked to the aforementioned indicator systems would certainly help make the analysis more fact-based and objective.

The VRGA leads to the formulation of sectoral goals and objectives and setting of targets.

2.8 FORMULATING/VALIDATING GOALS AND OBJECTIVES

What are goals and objectives?

Goals and objectives translate an organization’s vision into more concrete and measur-able terms. They are clear statements of visions that specify the actual accomplishments that need to be achieved if the vision is to become a reality. Goals and objectives are both desired results, but they diff er in terms of timeframe and impact.

Goals are longer-term results that bring the LGU closer to the vision. An objective is a more specifi c statement of a short or medium-range desired outcome or result. LGUs are directly accountable for the achievement of objectives.

Goals and objectives are so inextricably interrelated that the attainment of objectives will in fact lead to the achievement of a goal (see Figure 2.3).

Figure 2.3 Relationship Between Goals & Objectives: An Example

GOALIncreased Farm Income

OBJECTIVE 1Improved farmers’ ac-

cess to market

OBJECTIVE 2Enhanced access

to credit

OBJECTIVE 3Increased farm

yield+ +

51

Goals and objectives of local governments may be diff erentiated in three dimensions as shown in Table 2.12:

Result Level Timeframe Accountability of results

GoalHigher level Long-term Partial accountability of

the LGU

ObjectiveLower level Short to medium term Full accountability of the

LGU

Table 2.12: Diff erences between goals and objectives

How are goals and objectives set?

Based on the results of the VRGA, specifi c goals and objectives are formulated. In developing goals and objectives, the LGU should be mindful of national, regional and provincial goals.

As partners of the national government, LGUs are also expected to play a big role in helping meet the country’s international commitments such as the MDGs, which to a great extent, are basic services that are devolved functions of LGUs.

The MDGs are as follows:

Eradicate extreme poverty and hungera. Achieve universal primary educationb. Promote gender equalityc. Reduce child mortalityd. Improve maternal healthe. Reduce maternal mortality ratef. Combat against HIV/AIDs, malaria and other diseasesg. Ensure environmental sustainabilityh.

For poverty reduction goals, the CLPI (derived through the CBMS) and the MDGs provide a sound basis for establishing gaps and where critical gaps exist. The CBMS indicates the state of well-being of households in the community while the MDGs serve as benchmarks on similar well-being indicators. These two sets of information combined can assist LGUs in setting poverty reduction goals and targets.

Confl ict-aff ected LGUs need to consciously develop goals to address issues on armed confl ict and structural violence. The confl ict analysis tools discussed in the previous section should be able to indicate key result areas around which goals and objective could be formulated.

The LGPMS is likewise a good material for goal and objective setting. As a measure of LGU performance in fi ve areas, the LGPMS assists LGUs in focusing their plans along development areas where they are lagging and need to make signifi cant improvements if they are to exhibit a good performance.

52

As a general rule, LGUs should be guided by the SMART criteria in developing goals and objectives (see Box 2.12). What tools can be used in the devel-opment of goals and objectives?

Objectives Analysis

Objectives analysis is a tool in which the hierarchy of problems (see Annex 2.3) is transformed into a hierarchy of objectives (objectives tree). It utilizes a diagram called objectives tree (see Annex 2.5). It identifi es means-ends relationships between and among the objectives. The objectives tree describes the scenario after solving the problems.

Annex 2.5 illustrates the step-by-step guide to devel-oping goals and objectives using objectives analysis.

Developing Success Indicators

What are success indicators?

Success indicators measure the extent of achieve-ment of desired results. They are needed for both goals and objectives and can be expressed either quantitatively or qualitatively. Indicators defi ne how performance will be measured qualitatively or quantitatively. Table 2.13 shows examples of success indica-tors for outcome of social service interventions.

Service area LGPMS Outcome (Development) Indicators

Health & Nutrition Percentage of children aged 0-71 months with below normal weightsInfant mortality rateMortality rate of children aged 1-5Morbidity rate Maternal mortality rateMortality rate

Education Secondary school completion rate Tertiary school completion rate Vocational school completion rate Literacy Rate

Housing & Basic Utilities Percentage of households living in informal settlements or makeshift housesPercentage of households with sustainable potable water supply Percentage of households with sanitary toilets Percentage of households with electricity

Peace, Security & Disaster Preparedness

Incidence of Index Crimes Incidence of Non-Index Crimes

Table 2.13 LGPMS Outcome Indicators for Social Services

Box 2.12SMART Criteria for Developing

Goals and Objectives

S Specifi c Specifi c in targeting an objective

M Measurable Progress is measurable through indicators

A Assignable Can be assigned to particular responsibility center and people

R Realistic Can be realistically done

T Time-related Has timeframe as to when it can be achieved

53

How is the achievement of desired results measured?

Measuring results starts with the selection of suitable indicators that can correctly show success of interventions. There are already existing indicators that can be readily used by LGUs. Among the sources of success indicators that LGUs can use are the following:

a. Local Development Indicators System (LDIS)

The RPS has introduced the LDIS which attempts to consolidate indicators that are relevant to local planning. The LGU may opt to use this as a guide in the selection of performance indicators that it fi nds relevant as a measure of its performance at the goal, objective and output levels. A sample LDI Table is found in Annex 3 of the RPS. The LGU however is not limited to this list and is encouraged to develop indicators that are more relevant to its goals and objectives. The LDI generally adopts the same sectoral headings in the EP (see section 3.2.1).

b. Core Local Poverty Indicators (CLPI)

The Core Local Poverty Indicators (CLPIs) as shown in Table 2.14 are selected human development and income-based indicators from the diff erent local poverty monitor-ing systems existing at the local level and are deemed the minimum set that the LGUs should use for assessing the extent of socio-economic development in their locality (DILG Localizing the MDG). Most of the MDGs correspond to the CLPIs that are gener-ated through the CBMS.

MDG Indicators

Goal 1: Eradicate extreme poverty and hunger

Proportion of households with income less than the poverty thresh-old

Proportion of households with income less than the food threshold

Proportion of persons aged 15 years old and above who are not working but are actively seeking work

Proportion of children 0-5 years old who are moderately and severely underweight (below normal-low and below normal-very low)

Proportion of households who eat less than three full meals a day

Proportion of household members victimized by crime

Goal 2: Achieve universal primary education

Proportion of 6-12 year-old children who are not in elementary school

Proportion of 13-16 year-olds who are not in secondary school

Goal 3: Promote gender equality (can be generated from indicators Goal 2 since data are gender disaggregated)

Goal 4: Reduce child mortality Proportion of children under fi ve years old who died

Goal 5: Improve maternal health Proportion of women who died due to pregnancy related causes

Table 2.14 Core Local Poverty Indicators (CLPIs)

54

Goal 6: Combat HIV/AIDS, malaria, and other infectious diseases

Proportion of households without access to safe water

Proportion of households without sanitary toilets

Goal 7: Ensure environmental sustain-ability

Proportion of households who are squatters

Proportion of households with makeshift housing

Source: (DILG Localizing the MDG)

c. Local Governance Performance Management System (LGPMS)

The LGPMS contains a total of 107 indicators classifi ed into 17 service areas for fi ve per-formance areas of local governments, namely: governance, administration, social servic-es, economic development and environmental management. LGUs may select indicators from the long list that are applicable to their context. The success of interventions are measured by comparing an initial baseline fi gure with the situation when performance measurement is scheduled to be taken. The recommend-ed schedule for monitoring and evaluating performance is discussed in Chapter 5.

Table 2.15 illustrates examples of results (goals and outputs) and their corresponding success indicators.

Goal/Outcome Success Indicators

Reduce child mortality (MDG Goal 4) Mortality Rate of children aged 1-5 (LGPMS outcome indicator)

Output Success Indicators

Child Immunization Percentage of children immunized (LGPMS output indicator)

Table 2.15: Results and Success Indicators

Why are success indicators important?

Success indicators are important because they:

Defi ne the criteria for success of a plan;a. Provide information about progress towards the achievement of desired results;b. Identify problem areas in plan implementation and direct interventions appropriately c. Provide a basis for monitoring and evaluation of the Plan.d.

What are the qualities of good success indicators?

Good success indicators must be:

Relevant – they focus on what is important in the objective or goal;a. Reliable – they are capable of yielding the same results even if gathered by two diff er-b. ent observers;

55

Practical – they make use of available data which are not costly to generatec. Independent – they cannot be used for two levels of objectives, i.e., an indicator for a d. goal cannot be used as an indicator for an objective.

Setting Targets

What is a target?

A target is a specifi c and concrete statement of a desired outcome or result. It embod-ies commitments about the level of achievement as well as the timing of results to be achieved. It represents improvements to existing conditions.

Targets can either be quantitative or qualitative. Targets for quantitative indicators are numerical, while targets for qualitative indicators are descriptive. The Table 2.16 below illustrates examples of results (goals and outputs), their corre-sponding success indicators and the targets.

Goal/Outcome Performance Indicator Target

Reduce child mortality (MDG Goal 4) Mortality Rate of children aged 1-5 (LGPMS outcome indicator)

Reduce children under fi ve mortality rate by two-thirds by 2015 no (MDG target 4)

Output

Child Immunization Percentage of children immunized (LGPMS output indicator)

Immunize 10% of children aged 0-5 by 2007

Table 2.16: Results and Targets

Why are targets important?

Targets are important because they:

identify how much of a change is expected during the planning period;a. help raise the expectations of all those involved in program and project implementa-b. tion;provide useful benchmarks against which implementors can measure their perfor-c. mancepermit implementors to evaluate both the adequacy of actions being taken and the d. progress made in implementing action plans.

56

How are targets set?

Targets are set for each performance indicator selected for every result (goals, objectives, outcome). More than one target maybe needed for a particular objective.

A good target must be:

based on trendsa. expressed in terms of increases and decreases in values such as growth rates, percent-b. ages or absolute values in gross or real termsprioritized according to their degree of attainability and order of signifi cancec.

Setting Targets using the CBMS and the MDGs

The CBMS is particularly useful in identifying targets for the LGU’s pro-poor programs. As CBMS data locates and characterizes the poor in the LGU, it would be wise for the LGU to focus or prioritize its poverty programs to the identifi ed poorest households and/or ba-rangays as a more eff ective approach to meeting its overall poverty reduction agenda.

Guided by CBMS information, the planning team can set more realistic targets based on existing data. GIS maps generated through CBMS are very useful for setting targets especially for decision makers who are not technically inclined because of its graphical nature of conveying informations. With GIS maps, one can easily pinpoint areas where intervention is most needed. To illustrate, in Figure 2.2 above, it is easy for non-technical members of the planning team to see which areas are in dire need of sanitary toilet facili-ties (i.e. barangays in red show lowest access).

In the case of the MDGs, LGUs may be guided by the national targets set by government.

Setting Targets Using LGPMS Data

LGPMS can be a valuable tool for setting LGU targets. Guided by LGPMS information, the planning team can set more realistic and conservative targets based on past perfor-mance or can choose to surpass past performance by using better performing LGUs as benchmarks for higher targets.

Targeting using LGPMS can be done in several ways:

1. Setting targets based on comparative performance

The results of comparative performance can serve as a good motivator for an LGU to surpass conservative targets. To illustrate, using the comparative performance in Table 2.17 below, the planning team can suggest a higher level target for malnutrition to match the performance of other LGUs belonging to the same class. Raising the level of LGU performance could also contribute to a higher provincial level average.

57

Development Indicator and Indicator Performance Range

My LGUMy Province

average

My Class Average(10 2nd Class LGUs in the

Region)

Percentage of malnourish children 0-71 months old

8% 12% 3%

Table 2.17 Setting Targets Based on LGPMS Comparative Performance

In setting the target, the planning team can set performance target based on the actual performance of the LGU class at 3% (see Table 2.17) or based the target on the lowest fi gure in the performance range for the indicator. In the malnutrition rate example, the performance rate for “high level performance” is between 2%-4% (see Table 2.5 above). The planning team can therefore set target at 4% and still get a “high level performance if the target is accomplished.

2. Setting targets based on performance trends

The LGU can also base its target on its three year performance trend. To illustrate, Table 2.18 shows an LGUs performance in the provision of water supply. From the table, we can see a rising trend from 64% in 2004 to 89% in 2006. Using simple graphical projections, we can calculate the increase in 2007.

IndicatorYear1

(2004)Year 2

(2005)Year 3

(2006)

Percentage of households with potable water supply

Performance Level=2

(64.00%)

Performance Level= 3(72.40%)

Performance Level= 4 (88.74%)

Table 2.18 Setting Targets Based on LGPMS Performance Trends

3. Setting performance based on the LGPMS performance scheme

Using the LGPMS performance scheme, the planning team can propose sustaining and stabilizing strategies for indicators with high level performance while it can prioritize development interventions for indicators with low and very low levels of performance.

2.9 FORMULATING STRATEGIES

The previous sections have discussed the formulation of result statements (vision, goals, and objectives). The next step in the process is to identify the means by which the de-sired results are achieved.

What are strategies?

Strategies are the means by which objectives will be achieved. Strategy answers the question “What needs to be done to reach the objectives?” Strategies must capitalize

58

upon the LGUs strengths, reduce weaknesses, take advantage of external opportunities, and avert external threats (David 1989). Failure to make satisfactory progress towards ac-complishing objectives signals a need for corrective actions (David 1989), thus a review of the strategies.

Developing strategies entails analysis, intuition and creativity. It builds on the wealth of data already generated by the LGU such as the ecological profi le, situation analysis, LDI, LGPMS, etc.

A very useful tool to help in strategy formulation is SWOT analysis. This is discussed in more detail below.

What tool can be used for strategy formulation?

Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis (SWOT) can be used in various stages of the planning cycle. However, it has been widely used for strategy formulation. SWOT results can be used by combining strengths and weaknesses of the LGU with the opportunities and threats in its environment.

As an example, if the LGUs objective is “Increased private sector investments by 10% by 2010” and one of the strengths identifi ed is “presence of unique ecotourism assets,” then a strategy that can be formulated to take advantage of the opportunity off ered by “In-creased interest in ecotourism worldwide” is “Develop ecotourism as a priority industry in the LGU” (see Figure 2.4).

Figure 2.4: Strategy Formulation using SWOT Goal

Increased private sector investments by 10% by 2010

ObjectiveImproved policy-regulatory environ-ment for private sector participation

in eco-tourism

STRATEGYDevelop ecotourism as a priority

industry in the LGU

StrengthUnique ecotourism assets

OpportunityIncreased interest in

ecotourism worldwide

+

59

The guide questions below (Table 2.19 may be useful in identifying strategic interven-tions in the plan.

Strategies Guide Questions

Strength-Opportunities How can strengths be employed to take advantage of development opportuni-ties?

Strengths-Threats How can strengths be used to counteract threats that tend to hinder achieve-ment of objectives and pursuit of opportunities?

Weaknesses-Opportunities How can weaknesses be overcome to take advantage of or implement devel-opment opportunities?

Weaknesses-Threats How can weaknesses be overcome to counteract threats that tend to hinder achievement of objectives and pursuit of opportunities?

Table 2.19 Guide to Identifying Strategies

Guide questions that can assist the planning team in identifying strengths, weaknesses, opportunities and threats is found in Annex 2.6.

Another tool that can be used in developing strategies is Streams Analysis. This tool is dis-cussed in detail in Chapter III of “A Guidebook on Local Poverty Diagnosis and Planning.”

2.10 IDENTIFYING PROGRAMS AND PROJECTS

What are programs and projects?

Programs and projects are the building blocks of both the CDP and the ELA. They are the means to operationalize a plan and translate chosen strategies into implementable activities to achieve the goals and objectives of the LGU.

A project may be defi ned as any undertaking that involves the use of scarce resources undertaken during a defi ned time with a given purpose. The term project refers to a great variety of en-deavors. A project may be as simple as a single activity or may be composed of a set of activities. Projects range from actions with a single-purpose, such as small infrastructure projects (e.g. construction of an irrigation facility, delivery of a training course, etc.) to complex, multi-component systems such as a capacity building program for the local government.

A program is a package of interrelated projects that conforms to the direction set by the stated strategy.

Box 2.13Importance of Project Identifi cation Phase

The project identifi cation phase is very important, because it is during this time that the relevance of project ideas are systematically established. This step of the plan formulation process facilitates the local development investment programming process. The list of programs and projects can provide a ready basis and a good headstart for the LDC in drawing up the LDIP and the AIP.

60

How are programs and projects identifi ed?

Project ideas originate from a multiplicity of sourc-es, among which are the following:

Development plans at higher levels (regional, a. and national)International commitments that the Philippine b. government has been signatory to, such as the Millenium Development Goals 4

Sectors within the LGU that experience the par-c. ticular problem situationCampaign platform and thrust of the LCEd. Local development indicators, including the e. LGPMS, LPIS/CBMS, Confl ict Analysis, etc.Good practice and award winning projects. f.

Project identifi cation can take off from the analysis of the problem situation discussed in section 2.7. Analyzing the problem situation further will lead to the identifi cation of underlying causes which in turn will guide the identifi cation of possible pro-grams and projects. This analysis allows for a more in depth and systematic way of identifying solu-tions to problem situations.

For pro-poor programs, the results of the CBMS can be a good source of project ideas given that the process benefi ts substantially from community inputs. CBMS data can further assist the LGUs in facilitating a more integrated delivery of services of government and non-government institutions to identifi ed poverty groups. The CBMS process also allows identifi cation of specifi c poverty issues in specifi c areas for specifi c benefi ciaries, thus, providing clear basis for more needs-based interventions.

In identifying programs and projects that promote confl ict sensitivity and peace, LGUs can refer to Annex 2.9 which provides a set of guide questions for this purpose.

In similar manner, reports generated from the LGPMS provides a good source of ideas for program/project interventions for the LGU. The LGPMS can help the planning team in identifying interventions to improve the performance of the LGU. The critical aspect in the matrix is defi ning the factors that hindered/contributed to the LGU performance (see Table 2.20).

4 DILG MC no. 2004-152 “Guide to LGUs in the Localization of the MDGs” dated November 10, 2004 provides a menu of PPAs per MDG goal and target to guide LGUs in responding to the targets.

Box 2.14Adapting Good Practice: the

Southwestern Liguasan Alliance of Municipalities (SLAM),

Maguindanao

It was during a Sharing Session in an LGSPA Leadership Course that Mayor Abdulkarim Langkuno of Paglat, Maguindanao realized how local governments can cooper-ate and pool resources to solve common problems within their jurisdictions. Taking cue from the PALMA Alliance in Cotabato, he rallied his neighboring munici-palities to form the Southwestern Liguasan Alliance5 of Municipali-ties6 (SLAM). This undertaking has been included as one of the priority projects in the LGUs ELA.

Through united work, the alliance envisiones to improve governance and service delivery in their juris-dictions. More importantly, the Alliance seeks to promote active campaigns to support a culture of peace in the area. Collectively, they see their efforts as being more viable in terms of delivering basic services and in promoting a more vibrant economy.

61

5 PALMA is an acronym for fi ve municipalities in the Province of Cotabato namely Pigcawayan, Alamada, Libungan, Midsayap, and Aleosan. Member LGUs of the PALMA alliance pooled their infrastructure equipment, machinery, personnel and expertise to collectively work on road building projects in the member towns. 6 The SLAM is composed of the municipalities of Paglat, Gen SK Pendatun, Datu Paglas and Sultan sa Barongis.

Indicator

Performance Results

(Result &Performance

Level)

Performance AnalysisPerformance

attribution(factors

facilitating/ hindering)

Development Impact if

performance is not

improved

Options for improving performance

Variance (compared

against province, LGU class or LGU

target)

Performance Trend

Program/project

Policy Develop-

ment

Malnutri-tion rate of children aged 0-7 years old

8% Higher than provincial average performance

Lower than LGU class performance

Increasing by 2% in the last 3 years

Increasing unemployment

Lower agricultural productivity

Poor access to health facilities

Enrollment dropped-out may increase

Poor health and nutrition of children

Short term:School feeding program

Tapping NGOs for feeding program

Long Term:Employment generation and local economic development program

Provision of funding for school feeding program

Table 2.20 Identifying Programs and Projects Using LGPMS

Who is/are responsible for identifying programs and projects?

As a vital step in the planning cycle, project identifi cation should involve the participa-tion of critical stakeholders, particularly the LDC which is the mandated body tasked to undertake appraisal and prioritization of programs and projects. Specifi cally, the various sectoral committees in the LDC can start the process of identifying programs and proj-ects. Involving stakeholders in program/project identifi cation enhances the appropriate-ness of interventions, fosters ownership and sustained support for their implementation.

Stakeholder inputs to program/project identifi cation may be elicited in a multi-stake-holder consultation session, or through separate discussions and validations conducted with critical members of the community.

2.11 DETERMINING CDP LEGISLATIVE REQUIREMENTS

What are legislative requirements in the CDP?

Legislative requirements are the package of legislative measures that are needed to achieve the development goals and objectives identifi ed in the CDP. These may include

62

Sector Goal ObjectivePrograms &

ProjectsLegislative

RequirementsTime frame

Committee Responsible

Economic Improved lo-cal economy

Increased invest-ments in the municipality by 10% by 2010

Investment Pro-motion Program

Amendment of Investment Code

2007 Finance, Appro-priations, Ways & Means

Institutional Improved fi s-cal capacity of the LGU

Fiscal gap re-duced by 5% by 2010

Revenue Enhancement Program

Updating of the Revenue Code

2008 Finance

Environment Improved ma-rine environ-ment

Expand man-grove forest by 25% by 2013

Mangrove Rehabilita-tion Program

An ordinance declaring man-grove forests as protected areas

An Ordinance Ap-propriating funds for mangrove rehabilitation

2008 Environment

Table 2.21 CDP Legislative Requirements

new legislation as well as amendments and updates to existing legislation. For example, if the LGU is undertaking an Investment Promotion Program, there may be a need for a legislation to amend its existing Investment Code.

How are legislative requirements identifi ed?

The process of identifying legislative requirements logically takes off after relevant pro-grams and projects have been identifi ed. However, while this can be the starting point for the identifi cation of appropriations ordinances for PPAs, the planning team should continue on and identify other legislative measures that will suffi ciently contribute to the attainment of goals and objectives. To illustrate, using Table 2.21 below, one can see that for the environment sector, several legislations are needed in order to attain the objective of expanding forest cover by 25% by 2013. Merely appropriating funds for the Mangrove Rehabilitation Program will not be suffi cient to attain the objective by 2013. Additional legislation need to be identifi ed to support the identifi ed program so that desired objec-tives are achieved. As a rule, identifi ed legislative requirements together with identifi ed programs and projects should be adequate to achieve an objective.

Table 2.21 provides a template in identifying relevant legislative requirements that are supportive of the development goals and priorities of the local government.

The CDP should devote a section on legislative requirements that include new legisla-tion, as well as those that need amending or updating (Serote 2005). This can serve as the initial source of information for the Sanggunian in identifying priority legislations to be included in their legislative agenda during their term of offi ce.

63

The Problem Tree and the Objectives Tree found in Annex 2.3 and 2.5 respectively are useful tools in the analysis of problems and in identifying appropriate legislation and other legislative requirements in the CDP.

Who are responsible for determining legislative requirements in the CDP?

The local sanggunian members, who are selected to be part of the planning team, are mainly responsible for determining legislative requirements. This does not however preclude other members of the team to recommend legislation to support the develop-ment thrusts of the CDP. The members of the planning team are also encouraged to adopt appropriate participatory tools and techniques to involve more local legislative offi cials as well as other stakeholders to participate in identifying legislative measures in support of the CDP.

65

Gearing Up ForPlan Implementation

3.1 FORMULATING THE EXECUTIVE AND LEGISLATIVE AGENDA

What is an Executive and Legislative Agenda

The Executive and Legislative Agenda (ELA) is a term-based plan of the LGU. It is the joint program of elected offi cials of the LGU. It contains the major development thrusts and priorities of both the executive and legislative branches for their three year term of offi ce consistent with the development vision, goals and objectives in the CDP. Essentially, the ELA is a slice of the CDP (RPS 2005), but may also contain other thrusts and priorities of the executive and legislative departments which may not have been identifi ed in the medium term CDP to address pressing con-cerns and new developments in the locality.

The ELA is a tool for:

Planning and budgeting, as ita. provides a development roadmap for the LGU within the three-• year term of the LCE and the Local Sanggunian helps identify results that will contribute to the LGU’s long-• term vision identifi es priority programs and projects to be implemented • within the three-year term of the LCE and the Local Sanggunian that will help accomplish desired results

66

organizes and allocates local resources in a rational and results-oriented • manner

Transparency and accountability, since itb. informs the constituents of the LGU’s term-based priorities within the context • of the medium- and long-term plans, for which the LCE and the other elected offi cials make themselves accountable facilitates consultation processes between the LCE and the various stakeholders.•

Social mobilization, because itc. promotes active and quality participation of the community in local develop-• ment planninghelps rally support from stakeholders • helps mobilize resources to implement priority programs and projects• helps unite the broader LGU community•

Performance management, because itd. provides a basis for ensuring that LGU plans for the three-year term of the LCE • and other elective offi cials are implemented and are producing the desired impacthelps set performance targets to the various departments of the LGU, thus • encouraging greater accountability for results, at least for the three-year term of offi ce of elective offi cials

Communication, since ite. allows elected offi cials to present and articulate their political agenda within • their three-year term and seeks their integration in the medium- and long-term development planscreates opportunities for the community to give feedback and voice out their • issues and concerns to the LGU, and the LCE in particularencourages closer interface between the executive and legislative offi cials and• allows for elected offi cials to report back their accomplishments and achieve-• ments after their three-year term

Convergence, because itf. Encourages collaboration between the executive and legislative departments, • at least within their three-year term in offi ceProvides avenues for consensus among diverse stakeholders in pursuing a • set of unifi ed actions designed to bring about the desired changes in the local community

What are the uses of an ELA?

The ELA, as a term-based plan can:

lead the executive and legislative branches to a unifi ed vision, mission, goals and a. objectivesenable the executive and legislative branches to agree on the priority problems and b. issues that need to be addressed within their three-year termhelp the LGU focus on a set of interventions towards the attainment of a common set c. of objectives and goals

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increase the chances of implementation of priority programs of the executive depart-d. ment within the three-year term of the LCE, if the legislative branch formulates ordi-nances in support of the LCE program of government for the same period speed up the implementation of priority projects within the three-year term of the e. LCE and local sanggunian

Box 3.1Converging on a Blueprint for Development: Acting in Concert in Upi, Maguindanao

The executive and legislative departments of an LGU need to be united in the results and actions that they are going to pursue to maximize the impact of development interventions in their jurisdictions.

In Upi, Maguindanao, both departments saw the ELA as a tool in synchronizing their efforts towards their common vision. The formulation of the ELA has encouraged strong collaboration between the two offi ces, as well as provided a means for consensus among the tri-people (Teduray, Moros, and other ethnic groups) constituents of UPI. The ELA allowed for civil society, through the involvement of the Upi People’s Council, to be involved in the whole process of formulating the plan.

The ELA became the blueprint for development in the municipality, with all stakeholders contributing to its effective implementation.

The ELA as Resource Mobilization Tool: The Kapatagan, Lanao del Norte Experience

The ELA has proven to be a handy tool for the local chief executive of Kapatagan, Lanao del Norte in mobilizing the much needed resources for her priority programs and projects. For her, the 20% IRA proved insuffi cient to fund the requirements of the citizens. With a clear roadmap and strong commitment to achieve the LGUs goals, the mayor ably rallied sup-port from donors to fund projects, to wit:

Farm-to-Market Road (Phase I): DAR- ADB- ARCP – LGU• Potable water supply (Phase II): DAR- ADB- ARCP – LGU• Botica ng Barangay: Accion Contra el Hambre• Shelter Development (LGSPA, Gawad Kalinga, Provincial Government of Lanao Del Sur • Livelihood Projects and Shelter, Capability building: MUCAARD • Reproductive Health and Gender, Population and Development Strategies component, gender • component: IPHO UNFPA – Housing Construction – NHA project; DSWD- GOP- UNDP; 67th IB PA, LGU- • School building construction: DepEd •

Prioritizing Peace and Human Security in Kapatagan, Lanao del Norte

The vision of Kapatagan, Lanao del Norte has always guided the executive and legislative branches to prioritize peace and human security programs and projects in their ELA.

Kapatagan was designated a “peace zone” in 2001 when the local government, military, MILF, traditional leaders, signed a peace covenant. The local chief executive has pursued a two-pronged strategy towards peace and human security --- peace-promoting programs and the delivery of much needed basic services. Municipal and Barangay Peace and Order Committees (MPOC/BPOC) were set up to resolve ridos.

The LGU’s efforts paid off, resulting in no major clashes happening since 2001.

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STEPS Process ELA Elements

Step 1Revisit the Vision-Mission as articulated in the CDP

Vision-Mission

Step 2Review and prioritize goals, objectives and strate-gies as identifi ed in the CDP

Priority Goals, Objectives, and Strategies

Step 3 Review and prioritize CDP programs and projects ELA Priority Programs and Projects

Step 4Review and prioritize CDP legislative require-ments based on the priorities agreed upon with the executive

ELA Legislative Requirements

Step 5 Identify capacity development needs ELA Capacity Development Needs

Step 6 Formulate the LDIP LDIP

Table 3.1: Steps in Developing the ELA

What makes a good ELA?

A good ELA possesses the following qualities:

Objective – It is grounded on a solid and objective research and sound analysis of the a. local situation. It cannot be based merely on the limited perceptions and biases of a handful of decision–makers.Needs–based – It is anchored on real needs of the community by making use of par-b. ticipatory approaches and tools, such as the results of Minimum Basic Needs (MBN) survey and CBMSFocused – It channels LGU eff orts and resources towards critical interventions which c. are anticipated to contribute signifi cantly to the realization of long-term development goals while bringing immediate benefi ts to its constituency.

How is the ELA formulated?

The ELA, as a joint program of local government should be mutually developed and agreed upon by the executive and legislative departments of the LGU in consultation with other stakeholders.

Once the CDP has been developed, the LGU can, for the most part, derive the elements of the ELA from the CDP. The following steps can be undertaken:

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Widely-shared and Participatory – It is widely shared, crossing party lines and sectors. d. It refl ects the values, views and development priorities shared by its constituents.

BOX 3.4SAMPLE FORMAT OF THE EXECUTIVE AND LEGISLATIVE AGENDA

Message from the Local Chief ExecutiveMessage from the Vice-LCELDC Resolution Endorsing the ELASanggunian Resolution Adopting the ELALocation MapLGU Vision and Mission Statement

1. Brief Profi le of the LGU a. Historical Backgroundb. Physical and Demographic Characteristics

2. Sector Situationa. Social Development Sectorb. Economic Development Sectorc. Environment and Natural Resourcesd. Infrastructure Sectore. Governance and Administrationf. Culture and Peace

3. SLGR

4. Sectoral Goals, Objectives, Strategies and Development Interventionsa. Sectoral Goals, Objectives and Strategiesb. Priority Programs and Projects by Sectorc. Priority Legislative Requirements

4. The Local Development Investment Programa. List of ranked prioritized projects, with cost estimates b. Projected Fiscal Requirements vis-à-vis Projected Revenuesc. Resource Mobilization Strategies

5. Priority Capacity Development Needs and Requirements

6. Communications Plan

7. Monitoring and Evaluation

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Are the legislative requirements of the CDP the same as the Legislative Agenda?

The Legislative Agenda (LA) is the primary tool of the Sanggunian in performing its role as the legislative body of the LGU. It provides a roadmap to guide them in the enact-ment of ordinances during their term of offi ce. Necessarily, the LA should have a time-frame of three years consistent with their term of offi ce.

The legislative requirements of the CDP are the priority legislations that need to be enacted by the Sanggunian to support development priorities of the LGU in the medium term. Some of the identifi ed CDP legislative requirements are subsequently integrated in the three year LA of the Sanggunian and the ELA. Figure 3.1 shows the link between the CDP legislative requirements and the three year LA which bears part of the ELA. The fi gure shows that only a portion of CDP legislative requirements can be picked-up by the Sanggunian for their three year LA that becomes part of the ELA priority legislative requirements.”

Figure 3.1 Link of CDP Legislative Requirements and LA

CDP legislative requirements

ELA Priority legislative requirements

Legislative Agenda

How are priority legislative requirements for the ELA identifi ed?

The process of identifying legislative requirements in the ELA takes off after relevant pro-grams and projects have been prioritized. Table 2.21 discussed in the preceding section can be used for this purpose. The output generated from this step is useful in terms of:

Highlighting and advocating the importance of harmonizing legislative and executive • actionsGenerating needed support for implementation of ELA activities• Providing focus to the legislative work of the Sanggunian•

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3.2 INTEGRATING LOWER LEVEL PLANS

There is no one way of integrating lower level plans with their higher level counterparts. Lower level plans are incorporated into their higher level counterparts in several ways. Specifi c to municipal and city CDPs, integration of Barangay Development Plans (BDP) is done at diff erent levels namely:

Elevating highly critical issues identifi ed in the BDPs (e.g. high incidence of water-• borne diseases) to MDPs/CDPsIncluding priority programs and projects of barangays that refl ect the priority thrusts • of the municipality/city that barangays are not able to fund and are part of the munici-pal/city mandate (e.g. construction of farm-to-market roads)

As has been discussed earlier, integrating barangay plans is only possible if all baran-gays in the city/municipality develop their BDPs simultaneously.

3.3 THE LOCAL DEVELOPMENT INVESTMENT PROGRAM

Sec. 107 of the LGC requires LGUs to prepare an investment program, referred to as the Local Development Investment Program (LDIP) and the Annual Investment Program (AIP), to operationalize the local development plan. The LDIP and the AIP are the principal instruments for implementing the CDP and ELA and link the plan to the budget. The LDIP should have a three years timeframe to coincide with the term of offi ce of local offi cials, subject to annual review.

The LDIP consists of programs and projects that are local or within the mandate of LGUs. It considers only programs and projects that are to be fi nanced by LGU funds, including na-tional programs that are prioritized for LGU implementation and for which local LGU counterpart is required. Unlike the CDP which presents a long list of programs and projects that are envisioned to meet sectoral goals, investment programming entails the prioritization of identifi ed sectoral projects, ranking the priority programs and projects vis-à-vis a set of criteria, matching the ranked programs and projects with available fi nancial resources, and formulating a fi nancing plan to support the implementation of priority projects that cannot otherwise be funded out of LGU funds.

What is the LGU Development Fund?

It is a common perception that the LGU development fund or that portion of the local budget used to fi nance investment programs and projects of the LGU is equivalent to 20% of its IRA share. In reality, LGUs spend more than 20% of the IRA for development.

Box 3.5The LDIP

The LDIP is not simply a list of priority programs and projects that the LGU wants to carry out. It also contains a program for planned fi nancing or for using the investible portion of the local budget to fi nance the implementation of those programs and projects and/or raising additional funds utilizing the LGU’s fi scal management powers and authority.

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Portions of the Maintenance and other Operating Expenses (MOOE) and capital outlay budget that are spent directly for basic service delivery, e.g. travel allowance of rural health doctors to barangays and medical supplies used, form part of the LGU develop-ment fund and should be refl ected in the LDIP. The 20% of the IRA is intended as the minimum, not the ceiling, in determining the LGU’s development fund.

Figure 3.2 shows the potential sources of local funds that LGUs can mobilize to fi nance development programs and projects.

Figure 3.2 Local Funds for Development

The Simplifi ed LDIP Process

The LDIP process is made up of three streams of activities:

Producing a ranked list of programs and projects with individual cost estimatesa. Determining available future funds for investmentb. Matching the fund requirements with projected funds available and deciding on c. fi nancing options should the funds available be insuffi cient

Figure 3.3 illustrates the steps involved in preparing the LDIP.

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Stream 1: Producing a Ranked List of Programs and Projects

1. The fi rst step is to derive the list of priority programs and projects and rank them ac-cording to a set of criteria. The output is a ranked list of programs and projects that will be presented to the LDC for approval, and the corresponding project briefs for each project in the shortlist.

2. The next step is to determine or validate estimates of costs of each of the priority pro-gram/projects. This is important to allow matching of investment requirements with the estimate of available funds.

Figure 3.3. LDIP Process as a Link between Development Planning and Budgeting

Chart prepared by Ernesto M. Serote

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The prioritization exercise involves a rigorous process described below.

Prioritizing Programs and Projects

Why is program/project prioritization important?

Project prioritization plays an important role in the budget process. They help the LGU focus scarce resources on relevant programs and projects that contribute to the achieve-ment of their goals and objectives. The list of priority programs and projects can become the starting point of the LDC in drawing up the LDIP and the AIP.

How are programs and projects prioritized?

Choosing programs and projects through well-thought out criteria makes the decision-making process rational and less arbitrary. The criteria for prioritization will vary de-pending on who formulates them since these refl ect the values of people and the specifi c situation of the LGUs. In ARMM, a criteria for elevating programs and projects of the province to the region has been agreed upon by the diff erent stakeholders (see Annex 3.0). Proper reference to and alignment with the following should be made in the process of setting the criteria:

LGU mandates as specifi ed in Section 16 of the 1991 Local Government Codea. National government functions devolved to LGUs under the Local Government Code b. of 1991 (Sec. 17)Crafted vision/mission, goals and objectivesc. Targetsd. Issues and problems that require priority focuse.

The prioritization activity should be results-oriented and viewed not simply as a means to fi nance activities and materials; rather, prioritized programs and projects are approved as the best means to attain objectives.

Program/ project prioritization involves the following steps:

a. Project Screening:

a.1 Initial project screening. For the initial project screening activity, simultaneous sec-toral workshops participated in by the members of the Local Development Council (LDC), all department heads, and members of the expanded Local Finance Commit-tee (LFC) can be conducted. This project screening shall be done to:

consolidate repetitive and redundant proposals • reject obviously impractical or undesirable project proposals• sift “non projects” from “projects” •

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Projects are development interventions that have defi nite time frames, require defi nite resource inputs like additional staff , equipment and space separate from the existing offi ce and with specifi c outputs. Below are the more specifi c distinguishing features of “projects” and “non-projects”.

Routine transactions, activities and services that are part of the regular functions of the LGU offi ce and performed by the regular staff with existing facilities and budget are non-projects and need not be included in the LDIP (e.g. issuance of business permits by the Business Permit and Licensing Offi ce and the mayors offi ce, collec-tion of real property taxes by the Treasurer’s Offi ce, the issuance of quarry permit by the Engineering and Environment Offi ce, or the enforcement of an ordinance by the mayors offi ce).

Diff erentiating projects from non-projects are further discussed in Table 3.2 below.

PROJECT NON-PROJECT

specifi c life cycle, with defi nite start and completion points with calendar dates

continuous; no specifi c event tied to calendar dates other than fi scal year budget

can be abruptly terminated if goals are not met; always terminated once project is completed

assurance of continued function even in a major re-organization

total effort must be completed within fi xed budget and schedule

maximum work is performed within the annual budget ceiling

prediction of ultimate time & cost required is diffi cult prediction of annual expenditures is relatively simple

rate and type of expenditures constantly changing constant rate and type of expenditure

Table 3.2 Guide to Distinguish Projects from Non- Projects

Table 3.3 gives an example of how projects are “sifted” for inclusion in the LDIP. As mentioned above, routine transactions and service delivery functions that are regu-larly done by the LGU should be fi ltered out.

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Sectoral Goal: To raise average income of farming households

No. Strategies Ref. No. Programs Projects/Services/Legislation Proj Serv Legis

1.0 Increase farm yield

1.1 Intensify production support services

Develop gravity irrigation

Install communal pump irrigation

Promote use of certifi ed seeds

1.2 Improve post harvest facility

Construction of mechanical dryers

Regulate use of streets as solar dryers

Put up storage facilities

Encourage investments in processing plants

2.0 Better process of farm pro-duce

2.1 Competitive pricing by traders

Encourage competition

Regulate prices

Improve market infrastructure

2.2 Up-to-date market information

Install internet-based access to commodities market

Promote organization of cops

3.0 Agricultural product diver-sifi cation

3.1 Farming system research

Land suitability analysis

Pilot test livestock and crop raising

Encourage utilization of idle lands through idle land tax

Improve tenure in agro-forestry areas

3.2 Product research & development

Utilize results of DOST studies

Hold agricultural and industrial fairs and exhibits

Table 3.3 Sifting Projects from Non-Projects

a.2 Sift programs and projects for ownership (see Table 3.4 for example)

For purposes of maximizing limited LGU resources and to guide the subsequent eff orts of the LGU in integrating PPAs to higher level plans, identifi ed programs and projects are further sifted or categorized according to ownership, whether it is a mandate for national, local or would be done better by the private sector. Screening PPAs for ownership entails the following:

screen out projects that are more appropriately implemented by other agencies/organi-• zationsdetermine projects that fall under the responsibility of the LGU• For programs and projects identifi ed as “locally-owned, these can be further catego-• rized based on defi ned administrative responsibility (provincial, city, municipal or barangay) as provided in Sec. 17 provisions of the 1991 LGC.”

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Proj. No. Project Title Nat’l Local Private

1.1.1 Gravity Irrigation Development X

1.1.2 Communal Pump Irrigation X X

Construction of Mechanical Dryers X

Construction of Storage Facilities X

Market Improvement Project X X

Internet-based Commodities Market Information System

X

Land Suitability Analysis X X

Silvi-Pasture Pilot Project X X X

Agro Industrial Fair X

Table 3.4. Sifting Projects for Ownership

a.3 Once programs and projects are identifi ed as “locally-owned” by the municipality, city or province, further screening is done to surface confl ict, compatibility or complemen-tarity. This should lead to the exclusion or redesign of confl icting projects. The rela-tionship between projects is one of confl ict when the expected benefi ts tend to nullify each other, or the implementation of one obstructs the implementation of another.

The PCIA Tool can be used to re-design or remove projects in the list that potentially contribute to confl ict in the community and prioritize those that promote peace.

b. Project Ranking

After project screening, the selected projects will be subjected to a ranking process. A tool that can prove useful in prioritization of programs and projects is the Goal Achieve-ment Matrix (GAM). This process will assure a high degree of participation by the members of the Local Development Council (LDC), expanded Local Finance Committee (LFC) and the Local Council (Sangguniang Panlungsod/Bayan).

The Goal-Achievement Matrix (GAM) is a popular planning tool used to evaluate alter-natives. Essentially, the tool evaluates options in terms of how well they contribute to the goals and objectives of the plan. As applied in program/project prioritization, GAM can be used to examine the alignment of proposed programs/projects with the goals and objectives. The GAM tool as used in prioritizing programs and projects is explained in Annex 2.7. while its use for project ranking is found in Annex 2.9.

In ranking programs and projects, the planning team should consider equity as a criteria. Given competing needs of LGU stakeholders, stakeholder analysis (SA) can be an addi-tional tool to help focus on sectors or groups that are most in need of assistance.

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For projects in the priority shortlist, the team should prepare individual project briefs containing more basic information that LDC members can use in re-viewing and approving projects using GAM or simi-lar tools. Relevant information can be captured in a one page project brief. Box 3.6 provides a sample outline of a project brief.

Stream 2: Determining Investible Funds

This stream runs parallel with the prioritization of programs and projects. The focus is on deter-mining the fi scal capacity of the LGU or the level of resources available to fi nance its priority programs and projects (also referred to as the LGU’s investible funds). Who are involved in determining the LGU investible funds?

The Local Finance Committee (LFC), composed of the Local Planning and Development Coordinator, the Budget Offi cer and the Treasurer, is charged under the LGC with the “setting of the level of annual expenditures and the ceilings of spending for economic, social and general services based on the approved local development plans.” As such, they should undertake the required fi nancial plan development in close coordination with the Local Development Council (LDC) for consideration and approval of the Sanggunian. The LFC could be expanded to include the Sanggunian appropriations committee chair, the Assessor, the LGU accountant, a private sector representative and a representative from civil society.

How is the LGU investible fund determined?

The LGU’s investible funds is determined by the following: Revenue level of the LGU• Level of recurring local government operating expenditures• Current public debt level• Statutory obligations/expenditures • Potential sources of additional revenue available for project fi nancing •

Box 3.6 Preparing Project Briefs

Prioritized programs and projects need to be translated into project briefs that give more detailed information on the project. It is recommended that the brief should be not more than one page and should contain information listed below (Serote 2006).

Project briefs are to be prepared by the concerned sectoral and func-tional committees with support from the secretariat of the LDC.

The recommended contents of a project brief include the following: a. the name and type of project

(generally, “soft” or “hard”)b. activity componentsc. the proponent or originator of

the project idead. the justifi cation for the project

(derived from the CLUP or CDP)e. the intended benefi ciaries

(population sectors or geo-graphical areas)

f. estimated cost or resource inputs (broken down by activity component)

g. target outputs or success indica-tors

Source: Adapted from Serote 2006

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The process of determining the investible funds involves the following general steps:

Data collection on key fi nancial statements (revenue and expense) covering several a. years Trend analysis, as well as analysis of the impact of policy, legislative and system/pro-b. cedural changes on revenues and expensesProjection of revenue and expense c. Determination of new capital fi nancing options d.

Step 1. Data collection on key fi nancial statements (revenue and expense) covering several years

Collect appropriate revenue data and determine the historical trends. Revenue is defi ned as any infl ow of funds to the LGU regardless of whether the source is repayable or not. It is suggested that data on revenue and expenditures be collected for the past three to fi ve years and determine the historical trend is determined by computing for the average annual rate of growth.

Historical analysis must be done for the major revenue sources: real property tax, business fees and licenses, other taxes, service and operations income, IRA and others. Tables 3.5 and 3.6 provide sample forms for time series computation of property tax rev-enue and other revenue sources, respectively.

Year(1)

Assessed Valuation(2)

Tax Rate(3)

Tax Levy(4)

CollectionAs % of

Levy

(5)Total Revenue from Property

Taxation

(a)Amount

(b)% change

(a)General

(b)SEF

(c)Total

(a)Amount

(b)% Change

(a)Amount

(b)% Change

Instructions: For each assessed year,1. Enter Assessed Valuation in column (1a) and the Property Tax Revenue Collected in Column (5a).2. Enter the tax rates in Columns 2a and 2b and enter the total in Column 2c. 3. Multiply the assessed Valuation 1a by the Total Tax Rate Column 2c. 4. Compute the Tax Collections as % of Levy, Column 4, by dividing the Total Property Tax Revenue Column 5a by the Tax Levy Column 3a. 5. Compute the % change over the preceding year and enter the results in the appropriate columns. 6. The exercise will require 3 to 5 years of historical data to be used as basis for a 3-year projection.

Table 3.5 Time Series Record of Property Tax Revenue

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Year

(1)Business Fees and Licenses

(2)Other Taxes

(3)Service &

Operations Income

(4)Total Local

Revenue

(b)IRA

(6)All Others

(7)Grand Total

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

Table 3.6 Time Series Record of Revenue Other than Property Tax

Instructions: For each assessed year,1. Enter the amount of revenue from each source in the appropriate column.

Note: a. Operating and service income covers public markets, slaughterhouses and other LGU economic enterprises. b. IRA refers to internal revenue allotment of the LGU.c. All others include other grants, and inter-government and inter-fund transfers

2. Compute the % change over the preceding year and enter the results in the appropriate columns. 3. The exercise will require 3 to 5 years of historical data to be used as basis for a three-year projection.

Revenue analysis must take account of the following:

Distinguish between (a) recurring and (b) non-recurring ones. This is because the • LDIP needs a stable source of fi nancial resources that depend on revenue sources which are assured for being collected every year. Thus, only projections of recurring revenue sources are relevant for investment planning purposes Distinguish between the impact on revenue volume of (a) changes in the tax base such • as increases in number of taxable structures or businesses, and (b) changes in tax rates

Analysis of historical trend must also examine occurrence of any unusually large in-crease in a revenue source for a particular year which cannot be expected to continue in the future. The impact on revenue of systems and procedural changes in billing and collection systems, enactment of new tax laws and ordinances, granting of tax amnesties, etc will have to be segregated in the analysis.

Step 2. Trend analysis, as well as analysis of the impact of policy, legislative and system/procedural changes on revenues and expenses

Collect appropriate operating expenditure data including existing debt service and determine historical trends. LGU expenditure patterns must be analyzed using available historical data. The period of analysis should match the number of years used in the revenue analysis.

Historical analysis needs to be done on the following expenditure items: general public services, social services, economic services, and others. The amount of debt service payments for existing and other anticipated LGU obligations must be established, and compared to the statutory debt service ceilings.

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It should be noted that election years usually result in abnormally high expenditures Thus, historical analysis of expenditures should remove such “abnormal years.”

Tables 3.7 and 3.8 show sample formats of historical time series for LGU operating ex-penditures and debt servicing, respectively.

Year(1)

General Public Services

(2)Social Services

(3)Economic Services

(4)All others

(7)Grand Total

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

(a)Amt

(b)% ch

Table 3.7 Time Series Record of LGU Operating Expenditures

Instructions: For each assessed year,1. Enter the amount of operating expenditure in the appropriate column. Note that debt and capital expenditure are excluded. Column headings should refl ect the major operating expenditure categories in the LGU. Note:

a. General public services include LGU administration, peace and order, etc. b. Social services include education, health, welfare, etc. c. All others include other grants, and inter-government and inter-fund transfers

2. Compute the % change over the preceding year and enter the results in the appropriate columns. 3. The exercise will require 3 to 5 years of historical data to be used as basis for a three-year projection.

Table 3.8 Obligated Debt Service Expenditure

Year(1)

Principal(2)

Interest(3=2+1)

Total

Instructions: This exhibit presents existing debt service requirements and therefore involves no projections. Simply compile the total debt service require-ments for local general obligation debt for each of the 3 year projection period for all LGU obligations from existing accounting records and enter the amount.

Step 3. Projection of revenue and expense

Establish relationships of revenue and expenditure items to population and economic development. After establishing the historical trend, it is also important to examine the behavior of revenue and expenditure to changes in population and economic develop-ment activities in the LGU, the overall national and regional economic development trends, demographic shifts, and changes in the labor market. One of the ways to estab-lish such relationships is through the use of per capita analysis.

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Step 4. Determination of new capital fi nancing options

Project future recurring LGU revenue and operating expenditure levels. In projecting future recurring revenue and expenditures, a careful assessment of the probable factors that aff ect each revenue source should be considered. Separate projections should be made for each major revenue item. Real property tax collection, being the largest source of revenue and the main benefi ciary of LGU investments, should be projected separately.

For expenditures, future normal recurring expenditures can be projected using (a) his-torical three to fi ve years average annual expenditure increase or (2) historical average expenditure per unit of output in the case of LGU business enterprises.

Expenditure projections should also consider the eff ects of any expansionary or organi-zational development/improvement plans within the LGU.

Tables 3.9, 3.10 and 3.11 provide templates for revenue and expense projections with detailed instructions.

Year

(1)Projected Assessed Valuation

(2)Tentatively Projected Tax Rate

(3)Projected Total Tax

Levy

(4)Collection as Percent

of Levy

(5)Projected Total Revenue From

Property Taxation(a)General

(b)SEF

(c)Total

Table 3.9 Projection of Property Tax Revenue

Instructions: For each year:1. Enter the projected Assessed Valuation in Column 1 and the estimated Collection as % of Levy in Column 42. Enter the tentatively projected tax rates in Columns 2a and 2b and enter the total in Column 2c.3. Multiply the projected Assessed Valuation (1a) by the Total Tax Rate Column 2c to obtain the total Tax Levy, Column 34. Multiply Column 3 by the Collection as % of Levy, Column 4 and enter the result into the Total Property Tax Revenue, Column 5.

In developing this revenue base for preliminary testing, different assumptions may be used regarding the projected tax rate. For example, a) the current tax rate can be used for the entire projection period; or b) some change in the tax rate can be assumed over the projection period depending on the adopted LDIP fi nancing package.

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Year(1)

Projected RPT

(2)Business Fees and Licenses

(3)Other Taxes

(4)Service and Operations

(5)IRA

(6)All

Others

(7)Projected

Total Revenues

Table 3.10 Projection of Total Revenue

Instructions: For each year:Use the appropriate projection methods discussed in the text. a. Get the RPT projection from previous form.b. Enter the sums of Columns 1 to 4 to get Column 5.

Year

(1)General Public

Services

(2)Social Services

(3)Economic Services

(4)All Others

(5)Grand Total

Table 3.11 Projection of LGU Operating Expenditure

Instructions: For each yearUse the projection methods discussed in the text.1. Enter the projected expenditures in the appropriate columns.2. Enter the sums of Columns 1 to 4 in Column 5 to get the total Operating Expenditures

How is the appropriate future growth rate for each revenue and expenditure set?

The historical trend analysis and assessment of the overall operating environment pros-pects determine which growth rate assumption is most appropriate for the locality.

Four alternative future growth rate scenarios can be used in coming up with the required fi nancial projections.

No change. This assumes that the present level of revenue or expense item will con-a. tinue in the future. Thus, either a constant absolute amount based on a recent year or on the average over a certain number of years is used in the projection. This method may be used if historical trend indicates little or no change, and provides a conserva-tive estimate of an uncertain revenue source.Change by constant amounts. This technique assumes yearly changes based on con-b. stant amount. It makes use of the average yearly change over the historical period of analysis as the amount to be added to the current year’s value to obtain future year value.

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Item No.

ItemYear

1 2 3 4 5

1 Projected Revenue

2 Less: Projected Operating Expenditures

3 Sub-Total (1-2)

4 Less: Obligated Debt Service

5 New Investment Potential (3-4)

Table 3.12 Projection of New Investment Financing Potential

Instructions: 1. Item No. 1 is to be taken from Table 3.102. Item No. 2 is to be taken from Table 3.113. Item No. 4 is to be taken from Table 3.8

The steps involved are as follows:

Step 1. Determine how many of the approved projects can be funded from regular sources for the three-year period and how many have to be fi nanced from other sources. The procedure in undertaking this exercise is as follows:

a. Using the ranked list of projects derived from the previous stream, take the cumulative total of the project costs from the top of the list downwards. Stop at the project that gives the cumulative total equal to or nearly equal to the estimated available funds for the next three years.

b. Take the total cost of the remaining projects that cannot be funded out of recurring sources. This amount should be transmitted to the Local Finance Committee for con-sideration in looking for other fi nancing options.

Change at a constant rate. This technique assumes annual changes at a constant rate c. based on the historical annual average percentage change estimate. The percentage change estimate, or the growth rate, is multiplied by the current year value to derive the next amount that should be added to the current year value to arrive at next year’s value. Correlation with demographic or economic variables. This method assumes a con-d. stant relationship between revenue and expense item and a demographic or eco-nomic variable. As discussed in Step 1, either the result of per capita analysis or an elasticity analysis adjusted to refl ect anticipated special developments in the LGU’s socio-economic and political environment can be used for this purpose.

Stream 3: Matching and Iteration of Fund Requirements with Projected Funds Available and identifying Financing Options

After the ranked list of projects has been completed (stream 1) along with the corre-sponding cost estimates, and the projection of funds available for investment fi rmed up (stream 2), matching and iteration exercises can now proceed.

85

Step 2. LDC approves the ranked list of projects. The LDC through a vote or resolution approves the ranked list of projects with their corresponding individual and aggregate cost estimates.

Step 3. The LDC deliberates on and decides what fi nancing approach to take. Three fi nancing approaches are available to local governments.

Option 1. Conservative approach where only projects that can be funded from regu-lar sources will be implemented.

Option 2. Developmental approach wherein the LGU will tap all revenue sources possible to raise the needed funds to implement the priority programs and projects

Option 3. Pragmatic approach which uses a combination of the two options.

The relevant general steps to be taken under any of the options are as follows:

1. Generate the fi nal list of projects. In option 1, the LDC further trims down the project list. Under option 2, the ranked list of projects is taken as the fi nal package of projects to be implemented and the LGU will secure the needed funds from all possible sources.

2. Under option 3, the LCE directs the LFC to make further studies on how to raise the needed funds. Among the measures to be taken are as follows:

a. Cut down on the number of projects. If the LGU chooses to reduce the number of projects to be funded from the local budget, the question to ask is, which projects will be excluded? The second option requires a good assessment of expenditure items and determining which of these needs to be cut down.

b. Augment available resources through improved fi scal arrangements, i.e. intensi-fi ed revenue collections and judicious expenditure management.

c. Augment available funds by public borrowing and other fi nancing options

3. LPDO prepares the three-year investment program and submits the draft to the LCE who in turn endorses it to the Sanggunian for adoption.

4. Sanggunian adopts the LDIP. After receiving the draft LDIP, the Sanggunian deliber-ates on and through a resolution, adopts the three-year investment program.

Project Outputs LocationSchedule of

Implementation ((From-to)

Implementing Offi ce/

Department

Cost Estimate

Source of Funds

Table 3.13 Local Development Investment Program (LDIP) Project Summary

Instructions:List all projects approved for the LDIP. Projects should be listed in the order of their implementation.

86

For more advanced and detailed techniques in investment programming, the RPS reader and the NEDA Guidebook on Provincial and Local Planning and Expenditure Manage-ment Volume 4 are recommended.

LGU Financing Plan Development

The fi nal step in investment programming is the preparation of the LGU Financing Plan that will have at the minimum the same timeframe as the LDIP. Ideally, the LGU Financ-ing Plan should be prepared in consultation with critical stakeholders as the fi nancing options are likely to have implications on them in terms of additional taxes or fees and the quality of future service delivery.

What fi nancing options are available to the LGU?

LGU fi nancing options have become extensive due to the corporate powers vested to LGUs by the Local Government Code. Apart from their taxing powers that enable them to generate local revenues, LGUs can now borrow funds to fi nance the implementation of development projects. Credit fi nancing as a fi nancing option should be resorted to with caution and careful analysis particularly in terms of its fi nancial soundness and long term impact on the LGU’s fi nancing standing and service delivery capacity. LGUs should also ensure that any undertaking to be entered into with the private sector shall promote and safeguard the interest of the local constituents. Figure 3.4 illustrates the diff erent options that may be employed by the LGUs to augment its locally generated resources.

ARMM LGU FINANCING OPTIONS

Internal Revenue

Allotment (IRA)

Offi cial Development

Assistance (ODA)

Local Revenues

Private Financing

Borrowing/ Credit

Financing

Taxes

User Charges/Fees

Service Fees

Multilateral Loans

Bilateral Loans

Grants

Bond Flotation

BOT

Public

Private

Figure 3.4 LGU Financing Options

87

Sources of Revenue

The major sources of revenues for LGUs are explained below.

Internal Revenue Allotment (IRA)

A major source of funds for LGU programs and projects is the IRA. Section 284 of the LGC specifi es that the IRA is the local government’s share of revenues from the national government. It is common notion that 20% of the IRA should be channeled to the provi-sion of basic services and facilities needed in the LGU. However, the intent of the LGC is for LGUs to give utmost priority in the utilization of their IRA for development projects (Section 17g of LGC). Local Revenues

Taxes, Fees and Charges – Section 18 and 129 of the LGC of 1991 clearly stipulates that each LGU has the power to create its own sources of revenue and to levy taxes, fees, charges which shall accrue exclusively for their use and disposition and which shall be retained by them subject to the provisions of RA 7160. Pursuant to this provision, LGUs can increase its local revenues by either implementing measures to effi ciently collect taxes, fees and charges based on existing ordinances or impose increases on the tax base or creating new sources of revenue.

Special Levy – The special levy is another LGU source of income waiting to be tapped. The special levy is an assessment on lands that are specially benefi ted by public works projects, whether new construction or improvements on existing ones funded by the LGUs. The Code, however, provides that:

a. the special levy shall not exceed sixty percent (60%) of the actual cost of such projects and improvements, including the cost of acquiring land and such other real property in connection therewith

b. the special levy shall not apply to all lands exempt from basic real property tax and the remainder of the land portions of which have been donated to the local govern-ment unit for concerned for the construction of such projects or improvements (Sec-tion 240, RA 7160)

Offi cial Development Assistance

Offi cial development assistance (ODA) is defi ned as those fl ows to developing countries which are provided by offi cial agencies, including state and local governments, or by their executive agencies. It can be bilateral or multilateral technical assistance and loans.

Bilateral transactions are those undertaken by a donor country directly with an aid re-cipient. Multilateral contributions are those made to a recipient institution which is an international agency, institution or organisation whose members are governments, or a fund managed autonomously by such an agency.

88

The ODA is administered with the promotion of the economic development and welfare of developing countries as its main objective. ODA fl ows are either loan or grant. ODA loans are concessional in character (low interest rate if loans) and sometimes, contain a grant element of at least 25%.

The Local Government Code empowers the local chief executives, as authorized by the local Sanggunian, to negotiate and secure fi nancial grants or donations in kind in sup-port of basic services and facilities from local and foreign assistance or agencies without the necessity of securing clearance or approval from any department, agency or offi ce of the National Government or from any higher LGU.

Source: Approved 2007-2008 Barangay Budget of Sarmiento, Municipality of Parang

Box 3.7Managing the Fiscal Gap in Barangay Sarmiento, Parang, Maguindanao

Local government units in ARMM are now beginning to explore the possibilities of their taxing and revenue-raising powers. Even barangays are starting to explore other sources of revenue in order to pro-vide for the needed services to their constituents. Barangay Sarmiento in the Municipality of Parang has started to invest in barangay enterprises such as market, slaughterhouse, terminal and water to augment their IRA share. Although income from other sources is still relatively small compared to the IRA, the barangay is getting better in blazing new trails in terms of revenue generation to reduce the fi scal gap, defi ned as the difference between perceived needs and available fi nancial resources. The table below shows a breakdown of sources of income for the years 2007 and 2008 for Barangay Sarmiento.

Sources of Revenue/Income Income

2007 (Estimate) 2008 (Estimate)

Brgy Share in IRA 3,300,000.00 3,800,000.00

Barangay Enterprises 300,000.00 308,000.00

Market Space Rental (lots/stalk) 120,000.00 126,000.00

Slaughter House 10,000.00 12,000.00

Water Fees 90,000.00 90,000.00

Terminal 80,000.00 80,000.00

Other Sources 190,000.00 190,000.00

Share in Real Property Tax collection 150,000.00 150,000.00

Share in Community Tax collection 20,000.00 20,000.00

Barangay Clearance 20,000.00 20,000.00

Grand Total 3,798,000.00 4,298,000.00

89

ODA funds coordinated and managed at the regional level either by PMOs or Regional agencies like RPDO, DA, ODA offi ces, TMS-ORG like UNICEF, KSFP, MRDP, USPL, ARCP, UNMDP, LGSPA-CIDA, INFRCS, and others were also allocated funds for LGUs PIP. (EO 7 ODA Coordination and Oversight Committee – May 2008 – Regional Gov-ernment)

Investment Programming and Resource Mob Section---Integration/Interphase of Local to Regional)

Private Financing

Private fi nancing comes in varied forms such as:

build-operate and transfer agreement• bond fl otation • other long-term securities.•

Section 302 of the Local Government Code sets the basic guidelines in employing BOT scheme and the Philippine BOT Law and its implementing rules and regulations provide the details. In particular, Section 3 (Private Initiative in Infrastructure) of the BOT Law stipulates that all government infrastructure agencies, including government-owned and-controlled corporations (GOCC) and local government units (LGUs) are authorized to enter into contract with any duly pre-qualifi ed project proponent for the fi nancing, construction, operation and maintenance of any fi nancially viable infrastructure or de-velopment facility through any of the projects authorized in the BOT Law. Said agencies, when entering into such contracts, are enjoined to solicit the expertise of individuals, groups, or corporations in the private sector who have extensive experience in undertak-ing infrastructure or development projects.

Bond Flotation and Other Long-Term Securities

Section 299 of the Code also authorizes the provinces, cities and municipalities to is-sue bonds, debentures, securities, collaterals, notes and other obligations to fi nance its self-liquidating, income producing development or livelihood projects pursuant to the priorities established in the approved local development plan and subject to the rules and regulations set by the Central Bank and Securities and Exchange Commission. Borrowing/Credit Financing

Title IV of the Local Government Code provides the legal basis for the LGUs to create indebtedness and avail of credit facilities with any government or domestic private bank and other lending institutions to fi nance infrastructure and other socio-economic de-velopment projects in accordance with the approved local development plan and public investment program.

90

For loans from funds sourced by the national government from foreign services, the President of the Philippines or his/her duly authorized representative may through any government fi nancial or other lending institutions re-lend to any province, city or municipality. An example of this scheme is the Local Urban Water Supply Project of the Development Bank of the Philippines (DBP) with funds from the World Bank.

Inter-local government loans, grants and subsidies

Concerned LGUs may extend loans, grants or other subsidies to other LGUs under such terms and conditions as may be agreed upon by the contracting parties. These may be agreed upon by provinces, cities and municipalities, upon the approval of the majority of the local sanggunian concerned in amount not exceeding their surplus funds.

A compilation of information on non-traditional sources of funds may be found in the Resource Finder, a publication of the DILG with assistance from the Local Government Support Program Phase II (LGSP II). An e-copy of the publication is available and down-loadable from www.lgspa.org.ph.

7 Issued by the Department of Budget and Management in June 2005

Box 3.8Example of a Financing Scheme for LGU Projects:

Local Urban Water Supply Project of the Development Bank of the Philippines (DBP)

This Project is a series of three Bank-supported investments to assist the Government of the Philip-pines in:

a. clarifying the role of local government units (LGUs) in the provision of water supply services; b. providing guidance to the LGUs in the development and implementation of viable and sustainable

water supply projects; c. managing water as an economic good and promoting greater private sector participation in service

delivery, d. identifying institutional strengthening needs of LGUs to develop their capacity to perform fi nanc-

ing, planning and service provision functions.

Institutional Responsibilities:

DBP: Borrower of the loan, on-lends the same to LGUs. Responsible for construction supervision through the CSC, fund management and credit evaluation

DILG: Markets the Project to LGUs, ensuring a rolling pipeline of LGU-applicants and assists in proj-ect preparation particularly the submission of ECC, RDC endorsement and other government clearances and approvals.

DOF: Monitors lessons learned as input to future policy formulation in the sector.

91

3.4 THE ANNUAL INVESTMENT PROGRAM

The tool by which an LGU administers and provides budgetary support to its ELA and LDIP is the AIP. For planning & investment programming purposes, the AIP constitutes the annual slice of the LDIP, referring to the indicative yearly expenditure requirements of the LGU’s PPAs to be integrated in the annual budget (JMC No. 001 Series of 2007). For budgeting purposes, the AIP constitutes the total resource requirements for the budget year, including the detailed annual allocation of each PPA in the annual slice of the LDIP and the regular operational budget items broken down into Personal Services (PS), Main-tenance and Other Operating Expenses and Capital Outlay (JMC No. 001 Series of 2007).

The Plan – Budget Flow as described in the Updated Budget Operations Manual for Lo-cal Government Units (UBOM)7 and the JMC No. 1, series of 2007 is shown in Figure 3.5.

Figure 3.5 Plan-Budget Flow

ANNUAL / SUPPLEMENTAL BUDGETOne (1) year

COMPREHENSIVE DEVELOPMENT PLAN (CDP)Vision, Sectoral Goals, Objectives, Development Strategies and Policies

Medium Term ( 3-6 Years)

LOCAL DEVELOPMENT INVESTMENT PROGRAM (LDIP)Programs / Projects/ Activities (PPAs)

Medium Term (3-6 Years)

ANNUAL INVESTMENT PROGRAM (AIP)Annual Slice of the LDIP Priority PPAs;

Short Term (1 year)

The link between planning and budgeting takes place when the AIP, after having been reviewed and endorsed by the Sanggunian, is used by the LFC in the preparation of sectoral ceilings. This planning and budgeting linkage at the local level is illustrated in Figure 3.6.

92

Figure 3.6 Local Planning and Budgeting Linkage8

BUDGETING• Priority Programs/Projects/

Activities• Allocation of Resources• Major Final Output /Performance

Indicators / Targets

COMPREHENSIVE DEVELOPMENT PLAN (CDP)

Medium – Term (6 Years)

EXECUTIVE AND LEGISLATIVE AGENDA (ELA) (3 Years)

LOCAL DEVELOPMENT INVESTMENT PROGRAM

Programs / Projects / Activities (3 – 6 years)

ANNUAL INVESTMENT PROGRAM Priority Programs/ Projects/ Activities

Performance Indicators / Targets (1 Year)

ANNUAL / SUPPLEMENTAL BUDGET(1 Year)

PLANNING• Development Issues• Current Reality• Vision• Goals and Objectives

LINKInvestment Programming

The New AIP

The new AIP, as enunciated in the JMC constitutes the annual slice of the LDIP and re-fers to the indicative yearly expenditure requirements of priority programs, projects and activities to be integrated into the annual budget. It comprises the total resource require-ments for the budget year, including the detailed annual allocation for each PPA and the regular operational budget items broken down into Personal Services (PS), Maintenance and Other Operating Expenses (MOOE) and Capital Outlay (CO). As presented in the JMC, the AIP should contain the following:

Priority Program / Project/ Activity Description within each sector a. Implementing Offi ce/Department b. Schedule of Implementation c. Expected Outputsd. Funding Sourcee. Amount broken down into PS, MOOE, CO and total amountf.

8 Modifi ed based on Exhibit 7, Plan- Budget Link Model, UBOM, p.14

93

The new format of the AIP is shown in Table 3.15.

The sectoral groupings in the new AIP are slightly diff erent from that used in the CDP-ELA. These are the following:

Economic Services, which cover all activities directed to the promotion, enhancement a. and attainment of the desired economic growth (Endriga, Pulumbarit-Elum, Yap & Alcalde, p. 61)Social Services, which embrace expenditures for education, health, social security, la-b. bor and employment, housing and community development and other social services (Endriga, Pulumbarit-Elum, Yap & Alcalde, p. 202)General Services, which include executive and legislative services; overall fi scal and fi -c. nancial services; planning and conduct of foreign aff airs; general research; public order and safety and centralized services (Endriga, Pulumbarit-Elum, Yap & Alcalde, p. 92)

A sector for “Others” is also provided to indicate all other services which cannot be clus-tered with the three major sectors.

In the context of the UBOM, the following defi nitions are off ered:

Program – an aggregation of government projects/activities that share a common a. set of objectives. It is a major operation composed of projects and activities designed to accomplish or implement a mandate, function or objectives of an organization. (UBOM, p.42)

Example: Agriculture and Environment Program

Project – a special undertaking within a program composed of activities, which are b. carried out within a defi nite time frame and result in the accomplishment of an identi-fi ed output. (Ibid).

Example: Establishment of a Municipal Nursery

Activity – a work process which contributes to the accomplishment of a program or c. project. A sequence of actions done to implement the project. (Ibid).

Example: Maintenance of Municipal Nursery Timetable for AIP Preparation

The AIP for the Budget Year is prepared within the fi rst 6 months of the current year (January to June) to catch up with the issuance of the Budget Call by the end of June of the current year. For example, if the budget to be prepared is for 2008, the AIP should be prepared in January to June 2007. This is called the Pre – Budget Preparation Stage. The issuance of the Budget Call anytime between June 16 – 30 marks the beginning of the Budget Preparation period (Figure 3.7).

94

PERIOD COVERED ACTIVITY FLOW IMPORTANCE

Jan. 1 – 15 (15 days)

LCE issues Executive Order to LDC, LFC, Sanggunian Mem-bers, concerned CSOs & Private Sector, directing the updating of the LDIP & the AIP for the current year

Marks the beginning of AIP preparation• Sets general procedures and timetable for AIP • preparationSynchronizes AIP activities with budget prepa-• ration scheduleGuides identifi cation of PPAs to make them • consistent with the LDP & LDIP.

Jan. 16 – 30 (15 days)

Review of all objectives and Policies of the LFC, LDC, Execom, Chairpersons of the Sanggunian Committees on Planning & Appropriation, Citizen Advocacy Groups

PPA status are reviewed• Review criteria developed• Needs/issues & concerns are updated•

Feb. 1 – 15 (15 days)

Objective setting / Strategy formulation• Policy revision/ formulation• Prioritization of PPAs• Consolidation of revised objectives, strategies & prioritized • PPAs

Vision is re-visited• New directions, policies, program designs • designed or developedRe-ranking of priorities•

Feb. 16 – 28(13 days)

Input review results in AIP forms• Multi-stakeholder consultation on draft AIP•

Transparency of plan is encouraged•

March 1- 15(15 days)

Match investment requirements with available resources.• Revise draft AIP if resources are inadequate; formulate • needed policiesFinalize AIP for endorsement to Sanggunian• Sanggunian deliberates on AIP; approves and endorses to • LCE for fi nal approval

LGU’s fi nancial capacity is determined• AIP is legitimized and approved.•

March 16 – 30(15 days)

LFC elevates to higher LGU/ NGRO AIP – identifi ed projects that cannot be fi nanced by the concerned lower LGU.

Vertical linkage of projects that need funding is determined.

April 1 – 30(30 days)

Higher LDC deliberates on projects proposed by lower LGU for funding.

AIP – identifi ed projects to be funded by higher LGU are identifi ed.

May 1 – June 15(45 days)

LFC prepares profi les of PPAs to be funded from the General Fund of the LGU

Profi les disclose the planned activities of the LGU for the budget year.

June 16 – 30(15 days)

LCE issues “Budget Call” based on AIP (done after the • initial IRA share is released by DBM)LFC fi nalizes spending ceiling by sector/ offi ce• LFC conducts workshop / forum on the Budget Call•

Budget preparation guidelines contained in the Budget Call serve as valuable and informative materials for the budget preparation process.

July 1- 31(31 days)

Department Heads prepare & submit budget proposals AIP – Budget is linked and synchronized.

Aug. 16 – Sept. 15(30 days)

LFC conducts technical budget hearings on proposals submit-ted by Department Heads

Consistency of Budget with AIP is reviewed.

Sept. 16 – 30(15 days)

LFC consolidates budget proposals into a Local Expenditure Program (LEP) and prepares the Budget of Expenditure and Sources of Financing (BESF)

Oct. 1 – 15(15 days)

LCE prepares Budget message & submits the same to the Sanggunian with the Executive Budget consisting of the LEP & BESF.

Budget is more focused and transparent.

Figure 3.7 Timetable and Activity Flow of the AIP Preparation Process

Accomplishing the AIP Form

Once you have prepared your CDP, ELA and LDIP, it will now be easy to fi ll out the AIP form. The AIP should be prepared using the prescribed form in JMC No. 1 Series of 2007. The forms are prepared by the LPDO and the Budget Offi ce based on the approved ELA of the LGU as approved by the local sanggunian. The annual component of the Capital

95

Sector / Sub-Sector Reference Code

Economic Services 80

Social Services

Education and Manpower Development 30

Health, Nutrition & Population Control 40

Labor & Employment 50

Housing & Community Development 60

Social Security, Social Services & Welfare 70

General Public Services 10

Others 90

Table 3.14 Reference Code by Sector and Sub-Sector

Expenditure (Capex) shall be inputted by the Planning Coordinator and shall be inte-grated by the Budget offi cer together with the Personal Services (PS), Maintenance and Other Operating Expenses (MOOE) and other Capital Outlay (CO). The completed AIP Form is attested by the Local Chief Executive (LCE). The AIP is approved by both the Lo-cal Development Council (LDC) and the Sanggunian through a resolution. The following discussion can serve as guide in fi lling out the AIP form:

Column 1 – Indicate the reference code for the sector/sub-sector as per UBOM in order to facilitate consolidation of requirements. Reference Codes are used in the AIP to indicate the sector or sub-sector to which the PPAs belong. They are vital in the linkage process. The sectoral code classifi cation, which should be consistent and applied in all plan and budget documents, consists of the following:

Sector – symbolized by two digits, from 10 to 90 (See Table 3.15)• Program – represented by a third digit• Activity – signifi ed by a fourth digit•

The use of these reference codes may be illustrated as follows:

Economic Services Small & Medium Enterprise Development Program (Program)

Small & Medium Enterprise Development Program (Program)

Economic Services (Sector)

Economic Services (Sector)

Goat Raising Project (Project)

(2 digits) indicate the Sector 3rd Digit symbolizes Program 4th digit signifi es an Activity or Project

80 80 – 1 80 – 1 – 2

96

AIP

REF

EREN

CE

CO

DE

(1)

PRO

GR

AM

/PR

OJE

CT/

AC

TIV

-IT

Y D

ESC

RIP

TIO

N(2

)

IMPL

EMEN

TIN

G O

F-FI

CE/

DEP

ART

MEN

T(3

)

SCH

EDU

LE O

F IM

PLE-

MEN

TAT

ION

AM

OU

NT

(in

Tho

usan

d Pe

sos)

STA

RT-

ING

DA

TE

(4)

CO

MPL

E-T

ION

DA

TE

(5)

EX-

PEC

TED

O

UT

PUT

S(6

)

FUN

DIN

G

SOU

RC

E(7

)

PER

-SO

NA

L SE

RVIC

ES(P

S) (

8)

MA

INT

E-N

AN

CE

& O

TH

ER

OPE

RA

TIN

G

EXPE

NSE

S (M

OO

E) (

9)

CA

PITA

L O

UT

LAY

(C

O)

(10

)

TOTA

L(1

1)

Gen

eral

Pub

lic

Serv

ices

(10

)

Econ

omic

Ser

vice

s (8

0)

Soci

al S

ervi

ces

(30

)

Prep

ared

by:

____

____

____

____

____

____

____

____

____

____

____

__Pl

anni

ng O

ffi ce

rD

ate:

____

____

____

____

____

____

____

____

_

____

____

____

____

____

____

____

____

_Bu

dget

Offi

cer

Dat

e:__

____

____

____

____

____

____

___

Att

este

d by

:__

____

____

____

____

____

____

____

____

Loca

l Chi

ef E

xecu

tive

Dat

e:__

____

____

____

____

____

____

____

CY

___

_ A

NN

UA

L IN

VES

TM

ENT

PR

OG

RA

M (

AIP

)BY

PR

OG

RA

M/P

RO

JEC

T/A

CT

IVIT

Y B

Y S

ECT

OR

AS

OF

____

____

____

____

__

PRO

VIN

CE/

CIT

Y/M

UN

ICIP

ALI

TY/

BA

RA

NG

AY

: ___

____

____

____

____

___

Tabl

e 3.

15 A

IP F

orm

97

Column 2 – Describe briefl y the project/ activity to be implemented. This information can be derived from the project briefs.

Column 3 – Identify the implementing offi ce/department for the program/project/ activity.

Column 4 & 5 – The target start and completion dates of the proposed program, project or activity within the plan period must be clearly stated, e.g., August 2007 to December 2007.

Column 6 – Outputs can be derived from the project briefs. Outputs are the deliverables of the program, project or activity. Examples of these outputs are:

3 kilometers of concrete road in Barangay X, from Y Avenue to Z Street • 200 cavans per hectare • 10 hectares of reforested area • 400 functionally literate children • 5% reduction in infant mortality rate.•

Column 7 – The source of fund may be from the General Fund of the LGU, or other sources discussed in Section 3.1 above.

Column 8, 9, 10 – Indicate the estimated cost of the project or activity in thousand pesos broken down into PS, MOOE and CO.

3.5 TRANSLATING THE AIP INTO THE BUDGET

The completed AIP is submitted by the LCE to the Local Finance Committee (LFC) for appropriate action. The LFC will:

conduct a review of the projected revenue or projected income projected during the a. budget yearrecommend appropriate tax and other revenue measures or borrowings to support b. the budget recommend resource allocation measures and spending ceilings for the economic, c. social and general services sector.

The LFC may also elevate to the higher LGU or to the regional offi ces of national govern-ment agencies certain PPAs that cannot be supported by local revenues. Then LDC and the Local Sanggunian endorses measures as embodied in the AIP.

Once the LGU receives its initial IRA from the DBM, the spending ceiling by sector/offi ce is fi nalized by the LFC. This is followed by a forum or workshop on the budget to be conducted by the LFC. To the extent possible, multi-stakeholder participation shall be encouraged to develop a sense of ownership of the policy decisions, PPAs, targets and the strategic framework by which performance and accountability shall be lodged (UBOM, p.30).

98

Subsequently, department heads prepare and submit their proposals to the LFC which shall conduct technical budget hearings on these proposals. These proposals will later be consolidated by the LFC into a Local Expenditure Program (LEP). A companion docu-ment called the Budget of Expenditure and Sources of Financing (BESF), which shall support the LEP will likewise be prepared. Both documents will be submitted to the Sanggunian together with the Budget Message prepared by the LCE.

Budget Preparation

Budget preparation entails the integration of PPAs embodied in the AIP in the Budget. The process is illustrated in Figure 3.8. It involves three major steps:

Issuance of the Budget Calla. Preparation of the Executive Budgetb. Consultation with Multi-stakeholders c.

The Budget Call

The endorsed and approved AIP serves as the basis for preparing an executive directive known as the Budget Call. The Budget Call is important because it provides a venue for aligning the budget with the approved AIP (UBOM, p. 50). The Budget Call signals the start of the budget preparation process. It contains the following:

General objectives, specifi c sectoral objectives, policy decisions, strategies and pri-a. oritized PPAs by sector/ offi ce as refl ected in the AIPSpecifi c guidelines in the preparation of individual project proposals by department b. heads, including the following details:

Expenditure ceiling by offi ce / sector• Allocation scheme by major fi nal output and PPA• Budget calendar and budget preparation forms• Other administrative guidelines •

The Executive Budget

The Executive Budget consists of the Budget Message, the Local Expenditure Program (LEP) and the Budget of Expenditure and Sources of Financing (BESF). The major con-tents of the Executive Budget are shown in Figure 3.9.

Consultation with Multi-stakeholders

Consultation with various stakeholders – civil society organizations, private sector and non – governmental organizations in the community – is a new approach in budget mak-ing. This is another mechanism to ensure that the needs of aff ected sectors are inte-grated in the fi scal policies and PPAs approved and adopted by the LDC during the AIP preparation process (UBOM, p. 59).

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Figure 3.8 Budget Preparation Process

LOCAL CHIEF EXECUTIVE

LOCAL FINANCE COMMITTEE

DEPARTMENT HEADS

LOCAL SANGGUNIAN

Approves AIP endorsed by the LDC

and Sanggunian

Submits to Budget Message, LEP & BESF

to Sanggunian

Enacts Appropriation Ordinance/ Veto in

part or en toto

Issues Budget Call based on AIP

Prepare & submit budget proposals

Consolidates budget proposals into LEP;

prepares BESF

Conducts forum / workshop on Budget Call

Recommends appropriate tax or

revenue measures or borrowings to support

budget.

Elevates to higher LGU / NGRO AIP – identifi ed PPAs that cannot be fi nanced

by LGU

Prepares Project Profi les/ Briefs for

PPAs to be fi nanced by General Fund of

the LGU.

Recommends resource allocation

measures & sectoral spending ceilings.

Finalizes spending ceiling by sector /

offi ce after initial IRA is released by DBM

Conduct technical budget hearings on proposals submitted by Department Heads

Approved AIP

Budget Message

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Figure 3.9 Major Contents of the Executive Budget

BUDGET MESSAGE LOCAL EXPENDITURE PROGRAMBUDGET OF EXPENDITURE &

SOURCES OF FINANCING

DETAILED CONTENTS

Comprehensive presentation of the Executive Budget

Gives emphasis to the development goals & objectives, policies, strategies &* priority PPAs for the budget year.

Estimates of IncomeBeginning balance• Income sources (tax revenues, operating • & miscellaneous revenue, capital revenue, grants & aids, extraordinary receipts, borrowingsOther sources of revenue• Proposed measures to increase income • of the LGU

Contains detailed & graphical presentation of the expenditure program of the LGU.

Discusses the rationale for any proposed revenue generating measures to be implemented during the budget year.

Determines the average cost of services per taxpayer & correlates the same with the proposed increases for the budget year

Presents trend analysis of the revenue • share from IRA & other ALGU shares in comparison with locally-generated income

Discloses the following:extent of LGU compliance with the • budgetary requirements under the Local Government Code;tax collection effi ciency• revenue per capital & cost of borrowing•

Expenditure Program – covers a 3-year period: the past year, current year & budget year

Functional statement, objectives & • expected resultsProgram structure, including expected • results or output indicators for each PPAPropose new appropriations language for • the budget yearStaffi ng & compensation profi le• Special provisions•

Includes a 3-year comparative trend analysis of the expenditure program by sector, offi ce/department, covering the following:

Actual obligations for the past year• Actual & estimated expenditure for the current • yearProposed budget program for the ensuing year• Means & sources of fi nancing for the 3-year • period

Guidelines on the Special Purpose Appropriation (SPA) for the following purposes, among others:

Development Projects (20% of IRA)• Calamity (5% of Regular Income)• Debt Service Interest Payment (20% of • regular income)Budgetary support to Local Economic • EnterprisesAid to barangays• Grants in Aid•

Guidelines on the General Provisions for receipts, income & expenditure policies

Explicit provisions on the manner & • procedure for revenue generation & utilizationGeneral guidelines on the treatment • of income from the operation of local economic enterprises & public utilities

Guidelines on the Summary of the Fiscal Year New Appropriation – a summary of the new appropriation by Offi ce/ Department & Special Purposes Appropriation, refl ecting the total proposed budget for the budget year

Refl ects income estimates, sources of funds that will fi nance the budget & how such income is allocated.

Provides the basis & justifi cation for policy decisions contained in the Executive Budget

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3.6 DETERMINING CAPACITY DEVELOPMENT NEEDS FOR ELA IMPLEMENTATION

The ELA, to be implemented eff ectively, requires a set of competencies and institutional arrangements that should be present in the LGU. This set of competencies and institu-tional arrangements comprise an organization’s capacity. Assessing organizational com-petencies is a crucial aspect in the process of formulating an LGU short term plan such as the ELA. Thus, information about the level of competencies of LGUs can be included in and build up the relevant section of the planning database in addition to the informa-tion that are generated from other sources. Inputs on LGU capacity will be valuable in the subsequent ELA process of defi ning the LGU’s Capacity Development Agenda along with the necessary capacity requirements for eff ective and effi cient implementation of the LGU’s priority programs and projects.

What is capacity?

The CIDA-LGSP defi nes capacity as “the abilities, skills, understandings, attitudes, val-ues, relationships, behaviors, motivations, resources and conditions that enable individu-als, organizations, networks/sectors and broader social systems to carry out functions and achieve their development objectives over time .”

This defi nition classifi es capacity into three levels: individual capacity which refers to the knowledge, skills, attitudes and values of individual employees; institutional capac-ity which pertains to the organizational structure, systems and processes, motivation system, leadership, technologies, physical facilities and other organizational components that help make the system operate; and, systems/sector capacity which pertains to poli-cies, societal values or attitudes, development frameworks, institutional arrangements and other elements that aff ect the enabling environment.

What is capacity development?

Further using CIDA defi nition, capacity development refers to “the approaches, strate-gies and methodologies used to improve performance at the individual, organizational, network/sector or broader system level. ” Among its key objectives are to: a) enhance or more eff ectively utilize skills, abilities and resources; b) strengthen understandings and relationships; and c) address issues of values, attitudes, motivations and conditions in order to support development goals.

A capacity development plan is a document that seeks to rationalize and strategically focus the capability building eff orts of LGUs. A capacity development plan outlines the capabil-ity building interventions or programs that need to be undertaken to address an identifi ed capability defi ciency. The benefi ts derived from capacity development planning are not only confi ned to Plan implementation but can last even beyond the plan period.

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If the capacity development plan focuses only on human resource development, then it is referred to as Human Resource Development (HRD) Plan. The HRD plan is a compo-nent of the broader capacity development plan, the latter encompassing other elements comprising the organization.

At the individual or HRD level, capability enhancement is not only confi ned to training. There are other modes to enhance the skills and knowledge of people in an organization. These include coaching, mentoring, exposure trips/exchange program, etc.

At the organizational level, capacity development interventions may include the instal-lation or mainstreaming of systems and structures, improvement of work processes, introduction of new technologies, enforcement of rules.

What are the steps in formulating a capacity development plan? There is no “one way” to capacity development planning. Nonetheless, following are some suggested steps:

Establish the organizational and individual competencies that are needed to imple-a. ment the CDP. (What capacities should be present in the LGU to support the imple-mentation of priority programs and projects?Examine existing capacity vis-à-vis desired competencies. (Does the LGU have b. adequate leadership, management, technical skills, organization arrangement, moti-vation, technology and equipment, systems and procedures, regulations, ordinances, and funds to accomplish the goals of the CDP)Identify capacity gaps. (Where are gaps in capacities? Which capacity areas need to c. be prioritized?) Available local government performance management systems such as the LGPMS of the DILG and the SCALOG should be able to provide useful infor-mation on the organizational capacity of the LGU.Identify priority strategies or actions that need to be taken to improve capacities. d. (What should be done to improve or develop capacities?)Prepare a capacity development plan and budget. (How much time, eff ort and budget e. would be required to make improvements in the present capacity of the LGU and is it worth it?)Assign roles and responsibilities to achieve the goal and the capacity objectives.f. Monitor the plan and make adjustments as required. g. Should goals and objectives be adjusted given present capacity?h.

Table 3.16 provides a sample for a Capacity Development Plan or capdev plan.

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Sectoral Goal

Priority HRD/Capacity

Development Intervention

Target Offi ce Staff

Desired outcome

Implementation Details

(timeframe, who are involved)

Example 1: Increased own-source revenue

Computerization of real property tax

Treasurer’s Offi ce, Assessor’s Offi ce

Revenue collec-tion from RPT increased by ___%

1 year, treasury staff

Example 2:Improve access of the poor to quality primary health care services

Training of rural health workers

Rural health work-ers

Upgraded knowl-edge and skills of rural health work-ers on primary health care

2 weeks, all rural health workers in the LGU

Table 3.16 Sample of a Capacity Development Plan for ELA Implementation

Is there a need to prepare a separate capacity development or human resource development plan?

While the preparation of capacity development or human resource development plan may require a separate process, the activities and budget related to making capacity improvements should be part of the CDP goal and objectives. Key interventions to develop the required capacities for Plan implementation may either be integrated in the design and budget of sectoral programs and projects or be all placed under the Institu-tional Development cluster.

If capacity improvement measures are integrated in the design and budget of sectoral programs and projects, the budget and operational plan for capacity development, e.g. training, should be part of the overall plan, annual budget and the three-year investment plan for the particular program goal. This keeps all the program activities that need to be carried out, as well as the budgets, together and makes implementation and account-ability clearer. This also reduces the vulnerability of capacity development or HRD budget from being totally slashed should there be budgetary constraints within the LGU.

At the same time, there may be good reasons for wanting to see capacity improvement interventions in one place. For example, many training interventions may be proposed, and rather than having them scattered and uncoordinated, it may be more effi cient to bring them together under the responsibility of the HRD person or to integrate them into the LGU’s HRD plan or Development Administration/Institutional Development section of the CDP. This strategy however puts the plan at high risk of being the fi rst to go, as has been the practice of many LGUs as it is given the least priority.

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Some tips in capacity development planning

Proper grounding on capacity development concepts and tools would be useful in • implementing the activity. A separate orientation on the topic may have to be con-ducted for the Planning Team, and other LGU department heads who will be closely involved in the activity.A LGU capacity profi le is usually not readily available. Generating accurate informa-• tion on the LGU’s administrative and operational capacity may require substantial data gathering work, and therefore, take sometime. The Planning Team may utilize a combination of techniques in generating the required information. By its very nature, capacity assessment may appear threatening to some LGU staff and • constrain them from giving accurate information. It is therefore important that LGU department heads are thoroughly oriented on and understand the process as they are the key informants.The Planning Team may need the help of an external facilitator/advisor in assessing • capacity and developing a Comprehensive Capacity Development or HRD Plan.

Box 3.9Example of Capacity Assessment for a Revenue Goal

The LCE together with other stakeholders sets a goal to double the amount of real property taxes col-lected over the next 3 years. In the process of setting the goal, several issues were identifi ed:

There is no computer or software available in the LGU• There are staff available but they lack computer skills• The treasurer will retire at the end of this year• The revenue code is out of date• Many people are behind in their tax payments•

Clearly, more detailed work will have to be done. There will be a need for budget estimates (cost of computer, software and training). Other information (How can we fi nd out about better tax assess-ment methods? Why are people behind in paying their taxes?) will be needed. One of the managers will have to be assigned responsibility for developing an operational plan over the coming months. Perhaps a small task force will be needed to gather more information and to follow up on this work.

In preparing the operational plan for this result area, the following issues may have to be addressed in the area of building specifi c capacities:

What professional and personal qualities a new treasurer should have?• How should job descriptions of lower level staff be improved?• What kind of staff skills and experience are necessary?• Do we have the right kind of organizational arrangements?• Are changes in existing procedures, regulations and ordinances needed?• How are we going to maintain the equipment?• How do we motivate citizens to pay taxes?•

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The System on Competency Assessment for Local Government (SCALOG)

A tool that was more recently developed in aid of the LGU capacity assessment and capacity development planning is the System on Competency Assessment for Local Government (SCALOG). Using this tool enables the LGUs to evaluate their organiza-tional competencies. The SCALOG allows the LGUs to systematically conduct a self-assessment process and analyze strengths and weaknesses of LGUs work processes, structures, systems and technologies in order to sustain or further improve performance and organizational or institutional capacity.

Information gathered from using this tool can be utilized for an in-depth analysis of an LGU’s state of local governance, its development administration program and institu-tional capacity. Conversely, SCALOG-generated information enriches the LGU database, specifi cally providing more qualitative information for the Institutional Development Sector in the LDI section of the LGU’s CDP.

Use of LGPMS and SCALOG in Capacity Development Planning and Capacity Development (CD) Agenda Formulation

The SCALOG, together with the LGPMS, are excellent tools and sources of information to LGUs in assessing the capacity requirements of the plan and whether these are pres-ent in the LGU. The LGPMS provides a good starting point for gauging the capacity level and identifying the capacity needs of the LGU. Specifi cally, the LGPMS results for input indicators provide a relatively comprehensive picture of the capacity level of LGUs. LGPMS input indicators gauge the capacity of the LGU in terms of structures, policies, administrative systems, managerial and technical competencies, tools, facilities, equip-ment and fi nancial resources. By examining the results for the input indicators related to a particular development sub-sector in the CDP, it can provide an idea on whether or not the LGU has capacity defi ciency in that sub-sector. Further examination of the sub-indi-cators assigned to particular indicator and the rating scheme would illustrate more on the nature of the defi ciency and how it might be addressed. The strategies and actions identifi ed to address the defi ciency/ies would form part of the LGU’s Capacity Develop-ment Plan.

Not all capacity development issues may be adequately refl ected by the LGPMS indica-tors alone. Thus, capacity assessment should go beyond what the LGPMS indicates and CD needs analysis should be guided by other tools such as the SCALOG.

The use of SCALOG on the other hand takes off from a strategic plan of an LGU such as a Comprehensive Development Plan (CDP) or an Executive and Legislative Agenda (ELA). It presupposes that any eff ort to improve LGU capacity should be geared towards contributing to the attainment of development objectives and goals outlined in these LGU plans.

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The Capacity Development Agenda outlines the capacity development strategies, pro-grams and initiatives that need to be undertaken to address identifi ed organizational competency gaps, indicating the target groups, specifi c approaches that are recom-mended, resources required and the timeline. It is worth noting that in undertaking the process of capacity development planning and in formulating the LGU capacity develop-ment agenda, the Guidebook on the use of SCALOG promotes the utilization of appro-priate performance management and institutional competency assessment tools such as LGPMS, the integration of participatory processes such as dialogues, consultations and consensus-building in identifying organizational strengths and weaknesses of LGUs and the inclusion of all 5 LGPMS Performance Areas and 14 Service Areas in capacity development planning. In addition, it requires the CD Agenda to serve the three years, aligned with the LGU’s short term plan such as the ELA and also be the basis in setting the annual priorities of the LGU as articulated in the annual investment plan.

All these premises promote no less the integration and convergence as important in Ca-pacity Development Planning. Integration is key in the process of developing meaning-ful and relevant Capacity Development Agenda for improved performance of an LGU. It supports the advocacy of a rationalized planning system that disjointed plans will most likely lead to waste of resources and problematic governance and development results. The ultimate objective of using SCALOG as a tool is to ensure that the Capacity Devel-opment Agenda will help defi ne the necessary capacity requirements for eff ective and effi cient implementation of the LGU’s priority programs and projects.

Useful references are the publications of LGA namely the SCALOG Manual of Admin-istration and Managing Knowledge for Improved Local Governance Performance: A Guidebook on Capacity Development Agenda Formulation.

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Advocating the PlanThe Comprehensive Development Plan and the Executive and Leg-

islative Agenda, that is widely communicated and understood by all possible stakeholders not only helps enlist support for the plan

but also promotes transparent and accountable governance. It is likewise a means to encourage meaningful participation of stakeholders in local development.

It is therefore important that an accompanying Communications Plan (ComPlan) be formulated and implemented to guarantee the success of the CDP and ELA. In formulating the ComPlan, it is important to choose cost eff ective channels and vehicles to ensure that it can be implemented.

4.1 THE COMMUNICATIONS PLAN

What Is a ComPlan?

A ComPlan is a written document that describes how the CDP and ELA will be promoted to its stakeholders to seek their acceptance, support and participation in its preparation and implementation.

A ComPlan contains the following elements:

Objectives of the Local Development Plan, or what it intends to ac-a. complishList of intended audienceb. Key/Core messages to meet objectivesc. Methodology for getting the message across or delivered to the target d. audience in a cost eff ective manner to achieve desired results

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e. A feedback mechanism to determine how the target audience responded to the message.

Why is ComPlan important?

A ComPlan is important because it can:

guide and coordinate all communications, both internally and externally a. develop and maintain mutually benefi cial relations with key audiences by ensuring b. that the right message is aimed at the right audience at the right time and at the right placeeff ectively sustain the momentum to popularize the ELA and gain broad-based sup-c. port for the plan from key stakeholders.

Who are responsible for developing, implementing, and monitoring and evaluating the ComPlan?

An information-education campaign (IEC) working group from the planning team or from among the sectoral/functional committees of the LDC may be formed to draft the ComPlan and recommend its approval to the LCE. Implementation, monitoring and evaluation of the ComPlan may be integrated into the regular work program and activities of the LGU offi ces and departments. This means that each department/offi ce will be expected to implement sections of the ComPlan that pertain to or concerned with the functions of their respective department/offi ce accord-ing to the approved ComPlan design. The preparation, production and dissemination of the information materials shall be a shared responsibility of these departments and offi ces and coordinated by the Local Public Information Offi ce, if there is any. Otherwise, promotions team may be organized under the Offi ce of the LCE.

When should the Communications Plan be prepared?

When the CDP and ELA have been approved by the LDC and adopted by the SB/P, the IEC working group shall be mobilized. A communications planning workshop should be conducted to signal the beginning of the ComPlan preparation.

An IEC plan shall be needed to implement the communications plan. Its preparation shall follow immediately after the completion of the communications plan. It is impor-tant that the draft communications strategy and IEC plans and budget be submitted to the LCE for his endorsement. Modifi cations, when circumstances so require, shall be made accordingly.

4.2 DEVELOPING THE COMMUNICATIONS PLAN

Here are suggested steps in creating a ComPlan that would aim to popularize the Local Development Plan:

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a. Conduct a Stakeholders’ Communication Audit

A communications audit assesses current information needs and communications prac-tices of each of the stakeholders. The results will serve as a guide in drafting a communi-cations plan (Please refer to Table 4.1 - Communication Plan Matrix below).

Over-all IEC Objective:

Key Audiences

Communication Objectives

Key MessagesChannels/

VehiclesFeedback

MechanismSuccess

Indicators

(SAMPLE)Community

Make the public aware of the ELA and its merits.

The Local Development Plan promotes transparency, good governance and meaningful people’s partici-pation in the lo-cal development process.

Stickers, Jingle,Pulong sa Barangay,Performance updates (ulat sa bayan)Radio spots

Community consultations

Interviews

Increasing num-ber of NGOs/POs participat-ing in LGU activi-ties/projects

Ordinary citizens talk positively about the ELA

CSOs/NGOs/POs

Religious Groups

Academe

Local Busi-ness-men

Local and Interna-tional Funding/ do-nor agencies

Table 4.1: Communication Plan Matrix

b. Defi ne the ComPlan objectives

Communication objectives should be able to describe the desired results of the informa-tion, education and communication (IEC). These may include the following:

Making the public aware of the plan• Building public’s confi dence in the plan• Fostering better relations with stakeholders to get their support and active participa-• tion in the implementation of the plan Generating funding or logistical support for the plan from the local business sector, • national or international funding agencies, etc.

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c. Identify Target Audiences

List all possible audiences that the team will need to contact, attempt to infl uence, or serve in relation to the achievement of the objectives. They may include the following:

Local development Council members• Local Sanggunian members • Constituents/community• Local CSOs, NGOs and POs, including religious groups• Academe• Local businessmen• Senators and Congressmen • National and international funding agencies•

d. Defi ne the Key Messages

Key messages are the concepts that the audiences should remember or react to in rela-tion to the achievement of the objectives. These messages will be woven through all of the communications materials produced as well as any speeches given.Key messages may include the following:

ELA is responsive to the needs of the community.• ELA preparation process involves multi-stakeholder consultation and participation• ELA allows meaningful citizen participation in decision-making and implementation • of programs and projectsELA promotes transparency and good governance• The successful implementation of the plan needs the support and active participation • of its broad stakeholders.

The message has to be meaningful and appealing to the target audience. It should moti-vate the audience to think about and discuss. The message should be based on facts and tied to the present, not the distant future.

e. Identify medium for communicating the key messages

Choose the best strategies to reach target audiences and achieve the objectives of the ComPlan. It is important to bear in mind that communication strategies vary depending on the audience. It is therefore necessary that strategies adopted are appealing, ap-propriate and eff ective. The results of the communications audit can serve as a guide in selecting the suitable communication strategies.

Here are suggested media for promoting and marketing the Plan:

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Newsletters Calendars

Comics Newspaper and broadcast media

Billboards On-line communications

Jingles Website

Banners Pulong sa barangay (monthly)

Stickers Media forum

Ulat sa Bayan (year-end) SOM/CA (State of the Municipality/City Address)

Kapihan (quarterly) Radio spots

Donors’ forum Public meetings, people’s fora, dialogues or consultations

Exhibits Popular endorser

Communications include all written, spoken, face-to-face and electronic interaction with audiences, such as the following:

Certifi cates and awards Media relations and public relations materials

Online communications Incoming communications, including reception procedures and voice mail content

Meeting and conference materials Identity materials, including letterhead, logo, and envelopes

Marketing and sales tools Legal and legislative documents

Signage Periodic print publications

Speeches Annual reports

f. Pre-test communication strategies and tools

In order to maximize the benefi ts of the communication strategy chosen, it is recom-mended that the materials be pre-tested. If funding is available, professionals can be hired to pre-test the communication tools. Otherwise, the faculty of a local university or the services of community volunteers may be tapped. Materials should also be reviewed by key people in the community.

Pre-testing assesses the audience’s response to the campaign. It measures recall, compre-hension, response – is the message believable? Is it relevant? Is it acceptable? What are its strong and points? Box 3.1 presents some of the pre-testing methods that can be used by the LGU.

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4.3 IMPLEMENTING THE COMMUNICATIONS PLAN

Once objectives, goals, audiences, and tools have been identifi ed, quantify the results in a calendar grid that outlines roughly what and when activities will be accomplished (Please refer to Table 4.2).

Communication Objectives

Key MessageExample:

Target AudienceChannels/

EventsTime Table

Responsible Offi ces

Example:

Make the public aware of the merits of Local Development Plan

Fostering better relations with stakeholders to get their support and active participation in Plan formulation and implement-tation.

The ELA promotes transparency, good governance and meaningful people’s participation in the local development process.

Community,CSOs, NGOs, POs, Private sector / Local Business-men, Funding agencies

Stickers, Jingle,Pulong sa Barangay,Performance updates (ulat sa bayan)Radio spotsPeriodic publications,Website,Brochure

A successful implement-tation of the ELA needs the support and active participation of its stakeholders.

Table 4.2: IEC Implementation Plan Matrix

Box 4.1Pre-testing Methods for Communication Strategies

Focus groups – This is where small groups of 8 to 12 people meet with a moderator to discuss • ideas and materials. Focus groups are especially helpful in the early stages of materials develop-ment to test themes, images, and general issues. Interviews – In-depth interviews can be used to gauge an individual’s reactions to a sensitive issue • and/or specifi c materials. Central-location-intercept interviews – These interviews are held in public areas where members of • the target population congregate, such as markets, parks, shopping malls, movie theaters, schools, and churches. Questions are designed for quick answers that are easily tabulated. Self-administered questionnaires – This method provides access to people in rural areas or those • who are not likely to attend focus groups or to be in areas for central-location- intercept interviews. Readability testing – This is used to gauge the reading levels of materials. One widely used formula • uses both sentence length and syllable counts to estimate reading levels.

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The promotions and marketing of the plan can now be started by:

distributing communication materials through all channels chosena. reviewing activities and tracking audience reactionsb.

Monitoring and Evaluating Results of the ComPlan

Evaluating the ComPlan entails the following:

determining what worked well based on the goals and objectives established at the a. beginning of the IEC implementationassessing how the IEC aff ected the beliefs, attitudes, and behaviors of the target b. audience

The evaluation might take the form of:

a monthly report on work in progress • formalized department reports • periodic briefi ngs of the department heads• a year-end summary for the annual report•

It also involves gathering feedback to refi ne the ComPlan or IEC Plan by talking to com-munity members and asking them how the campaign changed what they thought or be-lieved about the Local Development Plan – its process, policies, programs and projects. The same techniques as in pre- testing the ComPlan may be used.

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Monitoring & Evaluation5.1 WHAT IS MONITORING AND EVALUATION (M & E)?

M&E functions as a performance measurement mechanism to give indica-tions on how future eff orts in the LGU might be improved.

Monitoring and evaluation diff er yet are closely related (UNDP 1997). While they are both necessary management tools to inform decision-making, they produce diff erent kinds of information. Monitoring can provide both quali-tative and quantitative data that can serve as inputs to evaluation. System-atically generated monitoring data is essential for successful evaluations.

Table 5.1 shows the salient features diff erentiating monitoring from evaluation:

Who will conduct M & E?

The plan monitoring team (MT) needs to be identifi ed by the planning team early on. The main function of the MT is to provide regular up-dates and advisory services to the LCE and the SB in relation to plan implementation.

The MT need not be a new structure in the LGU. It is more advisable that existing structures and mechanisms that are already in place in the LGU be used to monitor plan implementation. Below are some of the existing structures that can be activated for M & E.

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a. Sectoral or Functional Committees and the Local Planning and Development Offi ce With the passage of the Local Government Code of 1991, monitoring of projects has been devolved to the LGUs. M & E is a built-in function of sectoral and functional committees. The respective committees perform their respective M & E functions while the LPDO monitors and evaluates the overall implementation of the diff erent programs, projects, and activities in accordance with the development plan of the LGU (Rule XXIII, Art. 182 (g) (3) VI IRR of RA 7160; Sec. 476 (b) (4) of the LGC).

The LPDO with the assistance of the sectoral committees of the LDC should be respon-sible for impact evaluation, that is, the eff ects or outcomes of implemented projects, both by the government (national and local) and the private sector (Serote 2005).

Table 5.1 Salient Features of Monitoring and Evaluation

Differentiating Factors of M & E

Monitoring Evaluation

Meaning Systematic observation and documen-• tation of information on the imple-mentation of plan;Continuous tracking/measurement • of progress and performance against what was planned (time, outputs, resource use, cost);

In-depth analysis and comparison of • planned versus actual achievements;Systematic measurement of perfor-• mance at the level of development goals and objectives (UNDP, 2002);Systematic analysis of the relevance, • effi ciency, effectiveness, benefi ts, impact and sustainability of the plan;

Focus Programs, projects and activities Overall relevance, impact and sustain-ability

Importance Tracks progress (or lack thereof) of • plan implementation and determines whether priority programs and proj-ects outlined in the plan are actually implemented;Ensures that programs and projects • are implemented and managed ef-fi ciently and effectively;Identifi es problems in plan implemen-• tation in its early stage and allows decision and policy makers to address the problems or make appropriate adjustments;Alerts managers to problems and pro-• vides options for corrective actionsProvides recommendations for reme-• dial actions.

Generates information and provides • lessons that would guide the LGU in updating the Comprehensive Devel-opment Plan;Ensures informed decision-making• Identifi es the extent to which the • objectives of the Local Development Plan are achieved or whether the Local Development Plan addresses effectively the needs of the citizensEnsures that resources are strategi-• cally managed and put to the best possible use.Gives the LGU the opportunity to • communicate how they are doing in terms of plan implementation

b. The Project Monitoring Committee (PMC)

The Project Monitoring Committee (PMC) at the provincial, city and municipal levels are tasked to monitor government projects funded from foreign and national funds includ-ing development projects funded from the IRA and projects funded from locally-gener-ated resources (EO 93, 1993).

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The composition of the PMC is left to the discretion of the LDC subject to the inclusion of the following as mandatory members:

DILG representative or Local Government Operations Of-• fi cer assigned in the areaOne representative of NGO/PO• One representative of NGO members in the LDC• Four PMC members appointed by the LCE from among • the nominees of the LDC

The Chair of the PMC will be appointed by the LCE from among three nominees nominated out of the seven PMC members.

c. The Legislative Oversight Committee

Legislative oversight is an integral part of the legislative process. Legislative oversight refers to the legislature’s review and evaluation of activities of the executive branch. The sanggunian has a duty to ensure that plans, programs and projects are implemented and administered effi ciently, eff ectively and in a manner consistent with legislative intent. Oversight is the focus of work of special committees but can be part of the hearings and work of standing commit-tees in the sanggunian.

During committee hearings and meetings, the sanggunian may invite their counterparts in the executive department to brief its members on the status of a particular program that it wants to evaluate. To illustrate, the Committee on Trade and Industry may invite the members of the local tourism board to present a report on the implementation of its tourism program. Meetings of this type can be scheduled on a monthly or quarterly basis (Villaluz 2004). d. Implementing Offi ce of Programs/Projects - For short-term monitoring of project implementation, the responsibility should remain with the implementing offi ce. Project monitoring results may be discussed during executive meetings of the LGU.

How can other stakeholders be involved in M & E?

Participation of local constituents in monitoring should be encouraged. This can be achieved by including a CSO/private sector representative in the monitoring team. Another approach is to establish regular feedback mechanisms that can be either formal or informal. Among the feedback mechanisms that are now being done by some LGUs include the following:

Box 5.1Conducting Orientation Meeting

for the Monitoring Team

Coinciding with the fi rst organiza-tional meeting of the MT, an orienta-tion briefi ng will be conducted to set the team in motion. The LPDO together with the LGOO shall jointly undertake this activity.

The organizational-orientation meeting shall cover the following:

Basic information on M&Ea. Tools, instruments and method-b. ology for M&EFunctions, duties and responsi-c. bilities of the MTHighlights and salient points of d. the planM & E Calendare.

118

Suggestion boxa. Sending short message service (SMS) or text to local offi cials b. Report Card Surveyc.

How often is M & E conducted?

It is recommended that at the minimum, monitoring be done annually and at the end of three years. The recommended schedule for monitoring is shown in Table 4.2 below.

The outcomes and impacts of the CDP or ELA implementation can usually be felt or seen only after a longer period of time, A three year evaluation cycle, therefore, is neces-sary to elicit adequate information for revision of the CDP.

Evaluation of the plan is done at the end of the third year of local elected offi cials and every three years thereafter. At this point outcomes and impact of development projects imple-mented by the local government are evaluated. This is illustrated in the Table 5.2 below.

YEAR Q1 Q2 Q3 Q4

Year 1

Implementation of Last Year Budget and AIP of previous administration

ElectionM&E (Output, Outcome and Impact of Outgoing Administration’s ELA)

End-of-Term Report/State of Local Governance Report1Inaugural of New Term

Preparation of LDIP/ELAPreparation of Yr 2 Budget and 1st AIP

Year 2

Implementation of Yr 2 Budget and 1st AIPPreparation of Yr 3 Budget and 2nd AIP

Q1 Q2 Q3 Q4

M&E (Outputs and Financial Performance)End-of-Year Report

Year 3

Implementation of Yr 3 Budget and 2nd AIP

M&E (Outcome of 1st AIP)

Preparation of Yr 4 Budget and 3rd AIP

M&E (Outputs and Financial Performance)End-of-Year Report

Year 4

Implementation of Yr 4 Budget and 3rd AIP

ElectionM&E (Outcome and Impact of present Ad-ministration’s ELA)

End-of-Term ReportInaugural of New Term

Table 5.2 M&E Points in a Three-Year Term of Offi ce

Source: Serote 2005

119

5.2 DEVELOPING THE M & E STRATEGY

How is an M & E strategy developed?

The M & E Strategy Template is a straightforward form that can be completed by the monitoring team. The purpose of the tool is to develop an approach to M & E that will yield good information to be used in the next planning period and for other decision making purposes

The development of the M & E strategy should be seen as an integral component of the planning process and its development done during the planning phase. The following are the key elements of an M & E Strategy:

Clear and expected results (goals, objectives, outputs);a. Explicit targets per result;b. Indicators to measure progress towards results;c. Data source to assess performance;d. Collection methods;e. Frequency at which measurements will be madef. Roles and responsibilitiesg.

An M & E Strategy template has also been devised to aid the Monitoring Team in its preparation (See Table 5.3).

What tools can be used for M & E?

There are already a variety of tools that are being used to moni-tor and evaluate the achievement of results at the local level. Some of these tools are discussed below:

a. Annual/End-of-Term Accomplishment Report - At the mini-mum, LCEs need to prepare an annual as well as an end-of-term accomplishment report. A simple yet informative form that shows accomplishments of the LGU vis-à-vis what was planned is shown in Table 5.5. It also shows who the ben-efi ciaries are, the area coverage as well as the costs of the programs and projects implemented.

b. Community Based Monitoring System (CBMS) – The

CBMS can be used in monitoring and tracking progress of LGUs towards the attainment of their poverty reduction goals including the MDGs. The Core Local Poverty Indica-tors (CLPIs) discussed in Chapter 2 contain indicators on human development and are recommended as the minimum

Box 5.2The 120 Days Governor’s Report of

Shariff Kabunsuan

Developing a good plan is one thing, implementing it is another. An impor-tant element of the M&E Strategy are explicit targets per result. This makes reporting back to constituents easier to do.

In Shariff Kabunsuan, the LGU pre-pared a 120 Days Governor’s Report that presents accomplishment of the LGU vis-à-vis the plan using photo documentation. The report has been presented to the different stakeholders of the province.

The report concretely showed pro-grams and projects that have been delivered to the citizens presenting actual outputs (e.g. infrastructure facilities), their locations as well as the quantity produced.

120

set that the LGUs should use for assessing the extent of socio-economic development in their locality.

c. Peace and Confl ict Impact Assessment (PCIA) – The PCIA is a tool developed to assist LGUs to anticipate, monitor and evaluate the impact of their interventions on peace and confl ict. The tool identifi es fi ve impact areas that LGUs should closely look into:

confl ict management capacities• Militariziation/armed and human security• Political structure and processes• Economic structure and processes• Social empowerment •

A set of key questions per impact area is provided to guide LGUs in assessing impact of interventions along the fi ve areas. These are shown in Annex 2.9.

d. Local Governance Performance Management System (LGPMS) - The LGPMS is an LGU self-assessment tool that enables provincial, city and municipal governments to monitor and evaluate their performance at three levels of results: input, output and outcome levels. It looks at local government in fi ve performance areas and 17 service areas using 107 indicators. Table 5.4 shows the fi ve performance areas and the distri-bution of indicators per service area.

ResultsPerformance

IndicatorsTargets per

Indicator

Data Source to Assess

Performance

Collection Methods

FrequencyResponsibility

Center

Goal/Impact (Long term)

Reduce infant mortality (MDG no. 4)

Mortality Rate of children aged 1-5 (LGPMS out-come indicator)

Reduce chil-dren under-fi ve mortality rate by two-thirds by 2015 (MDG Target no. 4)

LGU Health Offi ce

Document review

Every three years and at the end of nine years

Monitoring Team

Objective/(Medium term)

Every three years

Monitoring Team

Program or project outcome or

Outputs/Deliverables (Short term)

End of project status

Goods, services, failities, infra-structure a pro-gram or projects has delivered

Annual Monitoring Team

Activities (Ongoing)

Every execu-tive commit-tee meeting

Department Heads

Table 5.3 M&E Strategy

121

Performance Area Service AreaNo. of Indicators

Input Output Outcome

Governance Local Legislation 2 1 -

Transparency 2 1 -

Participation 3 2 -

Administration Development Planning 2 2 -

Revenue Generation 2 4 -

Resource allocation and Utilization 2 3 -

Financial Accountability 3 2 -

Customer Services 2 2 -

Human Resources 3 1 -

Social Services Health and Nutrition 3 2 5

Education 5 2 2

Housing 2 1 4

Peace, Security and Disaster Prepared-ness

5 2 2

Economic Develop-ment

Agriculture and Fisheries Development 3 4 3

Entrepreneurship, Business and Industry Promotion

3 2 2

Environmental Man-agement

Natural Resources Management 3 1 3

Waste Management and Pollution Control

2 2 5

Table 5.4 Local Governance Performance Management System

5.3 EFFECTIVELY COMMUNICATING AND USING M&E RESULTS

Communicating the results of the monitoring and evaluation process to diff erent stake-holders of the LGU provides them with useful information that can be used in decision making. Once M&E results are available, it is best to communicate results to the poten-tial users of the information the soonest possible time. The eff ective use of information depends on the timeliness of the information. Communicating results might take the form of:

a monthly report on work in progress • formalized department reports • periodic briefi ngs of the department heads • annual report or State of the Municipality Address•

Using Monitoring Results

Realistically, implementation problems can happen even with the best thought out plans. Monitoring alerts LGU managers on particular issues/concerns that would in turn aid

122

them in coming up with appropriate adjustments to mitigate the eff ects of the problem or with solutions to address them.

Some useful questions that you can ask during monitoring include:

Are we implementing the identifi ed programs and projects in the plan? What are not • being implemented?Are we on schedule? Are priority programs and projects identifi ed in the plan being • implemented on time? If not, what are causing the delay?Are we spending within the projected budget?• Are we delivering the identifi ed outputs or deliverables (e.g. km of roads, training pro-• gram)?

If any of the questions above are answered in the negative, corrective actions need to be taken. Sometimes decisions can only be done by the mayor. If this is the case, it is im-portant for the monitoring team to inform the mayor at the earliest possible time so that timely decisions are made.

Using Evaluation Results

For elective offi cials, M&E results provide inputs for the next planning stage. The information allow them to identify the extent to which the objectives of the CDP and ELA have been achieved or whether the plan has eff ectively addressed the needs of the citizens. The information generated can provide les-sons and inputs that can guide the LGU in updating the plan in the next planning cycle. Some useful questions that you can ask during evaluation are:

Have the objectives been met?• Who benefi ted from the programs and projects? • How many benefi ted from the interventions?What priority programs and projects identifi ed in • the ELA were not implemented? Why they were not implemented?

For the citizens, they can be informed about how public funds are spent by the local government.

Box 5.3The State of Local Governance

Report of the Municipality of Wao, Lanao del Sur

Measuring LGU Performance

In 2006, the Municipality of Wao came out with its three year (2004-2006) SLGR. The report gave the LGU the opportunity to communi-cate how they were doing in terms of plan implementation in fi ve per-formance areas namely governance, administration, social services, economic development and envi-ronmental management. Moreover, it provided relevant information that guided the next planning period. Results showed areas where the LGU performed impressively and helped the LGU focus it’s interven-tions to service areas where it faired poorly.

123

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125

AnnexesANNEX 1.1INDICATIVE CONTENT OF THE TRAINING AND PLANNING WORKSHOP

The participants will be oriented on the CDP and the ELA formulation process and trained on how to use various tools and instruments, as well as the methodology for each step of the process. The training program will contain fi ve modules, listed as follows:

MODULE 1: INTRODUCTION

Session 1: Surfacing and Leveling of ExpectationsSession 2: Understanding the Planning Team’s Functions and StructureSession 3: Revisiting Past Planning ExperiencesSession 4: The Rationalized Planning System

MODULE 2: DEVELOPMENT PARADIGMS

Session 1: Sustainable DevelopmentSession 2: PovertySession 3: Confl ict Sensitive and Peace Promoting Planning

126

MODULE 3: THE COMPREHENSIVE DEVELOPMENT PLAN AND THE EXECUTIVE LEGISLATIVE AGENDA

Session 5: Overview of the CDP-ELA ProcessSession 6: Visioning Process, Session 7: Situational Analysis and Determination of Vision – Reality Gap; Goal and

Objective Formulation and Target SettingSession 6: Identifying Solutions: Developing Strategies, Programs, Projects and

ActivitiesSession 7: Determining Capacity Development Needs for Plan Implementation Session 8: Preparing the Term-based Plan or Executive and Legislative Agenda (ELA)

MODULE 4: ADVOCATING THE PLAN

Session 9: The Communications PlanSession 10: Developing the Com PlanSession 11: Implementing the ComPlan

MODULE 5: IMPLEMENTING THE PLAN

Session 12: The Local Development Investment Program (LDIP) ProcessSession 13: The LGU Development FundSession 14: LGU Financing PlanSession 15: Capacity Development Plan

MODULE 6: MONITORING AND EVALUATION

The culminating activity of the training program is the conduct of an LCE – Sanggunian Hour where major potential problems that may be encountered during the planning exercise not identifi ed earlier can be discussed and addressed.

127

Annex 1.2ADDITIONAL SESSIONS FOR ARMM AND OTHER CONFLICT PRONE LGUS

Additional sessions may be incorporated and enhanced for the Orientation Workshop to deepen the planning team’s understanding of confl ict sensitive and peace promoting planning. These sessions can be interwoven into the original design (Annex 1.1) or can be given as a separate module. Sessions can include the following:

Session 1: Why confl ict sensitive and peace promoting planning? (Appreciating benefi ts and advantages)

Session 2: Sharpening our peace lens: Mainstreaming Human Security and Confl ict Sensitivity in Local Governance Processes particularly in Local Develop-ment Planning

Session 3: Overview of the CDP-ELA Process with peace promoting and confl ict sensi-tive tools

Session 4: Information data-base for peace planning: CBMS, LGPMS and HS Indicators

Session 5: Confl ict analysis and Peace and Confl ict Impact Analysis as additional tools in Relevant Planning Steps

128

Activities Timeframe Expected OutputResponsible

Person/Offi ceResources Needed

Annex 1.3WORK PLAN TEMPLATE

129

Annex 2.1SYNCHRONIZED LOCAL PLANNING AND BUDGETTING CALENDAR

Period Covered Activity Outputs Actors

1st week of January PPDC sets guidelines for data gather-ing

Guidelines for Data Gather-ing

PPDCs

January-March Updating of planning and budgeting database (socio-economic, physical resources, time series revenue and expenditure dat, project profi les/sta-tus, among others

Updated planning, budget-ing and fi nancial database

LPDCs, budget offi cers, treasurers, department heads, NGAs/RLAs

April-May Analysis of planning environment for plan preparation/review/updating

Draft situational analysis and assessment of plan implementation

LPDCs, NGAs/RLAs

April-May Updating of appropriate AIP in the LDIP as input to budgeting

Indicative AIP (the fi rst year of the LDIP in the case of election year

LDCs, LPDCs

June 1-15 or 1st week of August during election year

Preparation of AIP Summary Form for the budget year

Indicative AIP (the fi rst year of the LDIP in the case of election year

LPDCs, local budget offi cers

Not later than 1st week of August

Approval of AIP AIP for the budget year Sanggunian

PDPFP/CDP Preparation

1st week of July during election year

Reconstitution of the LCD based on initial guidelines, including mechanism for choosing private sector represen-tative, prepared by LPDC

Timetable and tasking for plan preparation/updating

LCEs

Whole month of July Formulation of development vision, goals, strategies, objectives/targets and identifi cation of PPAs

Vision, goals, strategies, objectives, targets and PPAs

LDCs, LPDCs, Depart-ment heads, NGAs/RLAs

Harmonization and complementation of development vision, goals, and stra-tegic direction between and among province and component cities/mu-nicipalities

Harmonized vision, goals and strategic direction

Jointly by the province and component LGUs

Approval of PDPFP/CDP PDPFP/CDP Sanggunian

LDIP Preparation

June-July1-31 during elec-tion year

Identifi cation of areas for complemen-tation of PPAs between and among province and component cities/mu-nicipalities

Joint programs and project LPDCs of province and component cities and municipalities, NGAs/RLAs

Prioritization of PPAs Prioritized PPAs LDC, LFC, NGAs/RLAs

Matching of PPAs with available fi nancing resources and determina-tion of additional revenue sources to fi nance the PPAs

LDIP, revenue generation measures

LDC, LFC, NGAs/RLAs

Approval of LDIP Approved LDIP Sanggunian

130

Period Covered Activity Outputs Actors

June 16-30 or 1st week of July during election year

Issuance of Budget Call Budget Call LCEs (province, city, municipality)

July 1-15 Submission to LCE of certifi ed 3-year statement of income and expenditures

Certifi ed statement of income and expenditures

Department budget ceilings

Local treasurer (prov-ince, city, municipality)

Local department heads

On or before September 1-15

Submission to the Punong Barangay of statement of income and expenditure for the ensuing year

Statement of Income and Expenditure

Barangay Treasurer

July 1-15 Preparation and submission of budget proposals

Budget proposals Local department heads

July 16-August 31 Technical budget hearing of proposals Reviewed budget proposals LFC

September 16-30 Consolidation of budget proposals into the Local Expenditure Program and preparation of Budget and Sources of Financing

Local Expenditure Program and BESF

LFC

Not later than October 16 Preparation of the budget message and submission of executive budget to the Sanggunian

Budget Message and Ex-ecutive Budget

LCEs (province, city, municipality)

……………………….October 17 onwards

Enactment of Local Annual Budget Local Appropriations Ordi-nance

Sanggunian (province, city. Municipality)

Within three days from approval of budget

Submission of the annual or supple-mental budgets of province, city and municipality to appropriate reviewing authority

Within 90 days from ap-proval of local budget

Review of the annual or supplemen-tal budgets of the province, city and municipality

Reviewed budget DBM Regional Offi ces, Sangguniang Panlala-wigan

Within 10 days from ap-proval of barangay budget

Submission of the annual or supple-mental budgets of barangays to ap-propriate reviewing authority

Barangay Budget Sanggunian Barangay

Within 60 days from ap-proval of annual budget or supplemental budgets

Review of the annual or supplemental budgets of barangays

Reviewed budget Sanggunian (city, municipality) through the respective Budget Offi cer

Year round Implementation/execution of annual budget

LCEs

131

Step-by-Step Guide to a Visioning Workshop

STEP 1 The process usually begins with a trigger situation or question. Examples are: Five or ten years from now, what would you like to hear people say about your LGU?Today is year __, your LGU is an awardee in a prestigious international local governance event. What is the award for?Questions are extremely useful in bringing out initial ideas from people.

STEP 2 Divide the participants into groups (preferably fi ve) to correspond to the key vision ele-ments (or sectoral groupings) and give them time to individually refl ect on the trigger question. Then ask the members of each group to share their images of the particular sector or element assigned with their group mates.

STEP 3 Instruct the group to identify descriptors or adjectives, that is, words and phrases that signify the desired the state for the sector or vision element assigned to the group. Fur-ther, ask them to more concretely describe the desired state of the assigned sector/vision element by enumerating as many success indicators.

STEP 4 Ask each group to present their outputs of the desired future state (descriptors and success indicators) of the assigned sector/vision element to the plenary.

STEP 5 Ask the group to form a style committee/vision team among the participants to put the vision statement into its fi nal form, utilizing the descriptors or adjectives supplied in the group brainstorming. Note: the success indicators are saved for use in the vision-reality-gap analysis which leads towards the preparation of the CDP.

STEP 6 Ask the vision team to present the vision statement to the group for comment and validation. The vision team fi nalizes the vision statement taking into consideration the group’s comments and suggestions.

Annex 2.1.1WORKSHOP A: VISIONING EXERCISE

PURPOSE

The purpose of this workshop is for the LGU to come up with a vision statement with the participation of major stakeholders.

132

Annex 2.1.2WORKSHOP A: VISIONING EXERCISE FOR CONFLICT SENSITIVE AND PEACE PROMOTING PLANNING

PURPOSE

The purpose of this workshop is for the LGU to come up with a vision statement that is confl ict sensitive and peace promoting with the participation of major stakeholders.

Step-by-Step Guide to a Visioning Workshop

STEP 1 Discuss with participants the role of LGUs in peacebuilding and confl ict prevention and the requirements of mainstreaming human security in local governance (Use as refer-ence OPAPP-PIDO-STRIDES Guidebook entitled Confl ict-Sensitive and Peace Promoting Local Development Planning as reference for inputs)

STEP 2 Ask a trigger question. Examples are: Five or ten years from now, what would you like to hear people say about your LGU?Today is year __, your LGU is an awardee in a prestigious international local governance event. What is the award for?

Questions are extremely useful in bringing out initial ideas from people.

STEP 3 Divide the participants into groups (preferably fi ve) to correspond to the key vision ele-ments (or sectoral groupings) and give them time to individually refl ect on the trigger question. Then ask the members of each group to share their images of the particular sector or element assigned with their group mates.

STEP 4 Instruct the group to identify descriptors or adjectives, that is, words and phrases that signify the desired the state for the sector or vision element assigned to the group. Further, ask them to more concretely describe the desired state of the assigned sector/vision element by enumerating as many success indicators.

STEP 5 Ask each group to present their outputs of the desired future state (descriptors and suc-cess indicators) of the assigned sector/vision element to the plenary.

STEP 6 Ask specifi c questions on peace. An example is:Does the picture (LGU 5 or 10 years from now) you have painted show your aspirations for peace and human security in your municipality? Identify concrete descriptors and success indicators for your peace and human security?

STEP 7 Ask the group to form a style committee/vision team among the participants to put the vision statement into its fi nal form, utilizing the descriptors or adjectives supplied in the group brainstorming. Note: the success indicators are saved for use in the vision-reality-gap analysis which leads towards the preparation of the CDP.

STEP 8 Ask the vision team to present the vision statement to the group for comment and validation. The vision team fi nalizes the vision statement taking into consideration the group’s comments and suggestions.

133

Indicators Defi nition

Proportion of children aged 0-5 years old who died Death occurred after birth up to the age of 5 years. This excludes fetal deaths.

Proportion of women who died due to pregnancy related causes.

Pregnancy-related death is defi ned as the death of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the cause of death.

Proportion of children aged 0-5 years old who are malnourished

Total number of children aged 0-5 years old who are malnourished over total number of children aged 0-5 years old

Proportion of households living in makeshift housing. Considered as makeshift housing as those housing structure with makeshift/salvaged materials in walls and/or roof.

Proportion of households that are squatters. Considered as squatters are those households that live in house and/or lot that they do not own and without permission/consent of owner.

Proportion of households without access to safe water supply.

Considered as sanitary toilet facility are water-sealed fl ush to sewerage system or septic tank and closed pit, whether own use or shared with other households.

Proportion of households without access to sanitary toilet facilities.

Considered as sanitary toilet facility are water-sealed fl ush to sewerage system or septic tank and closed pit, whether own use or shared with other households.

Proportion of children aged 6-12 years old who are not attending elementary school.

Total number of children aged 6-12 years old who are not attending elementary school over total number of children aged 6-12 years old.

Proportion of children aged 13-16 years old who are not attending secondary school.

Total number of children aged 13-16 years old who are not attending secondary school over total number of children aged 13-16 years old.

Proportion of households with income below the pov-erty threshold.

Poverty threshold is estimated by infl ating the offi cially released poverty threshold of NSCB for Region or Province using prevailing monthly consumer price indices (CPI) from NSO for the reference period of the survey.

Proportion of households with income below the food (subsistence) threshold.

Food (subsistence) threshold is estimated by infl ating the offi cially released food (subsistence) threshold of NSCB using prevailing monthly consumer price indices (CPI) from NSO for the reference period of the survey.

Proportion of households that experienced food short-age.

Total number of households that experienced food short-age over total number of households.

Proportion of persons who are unemployed. Considered as members of the labor force are 15 years old above who are employed and those who are unemployed but actively seeking for work.

Proportion of persons who were victims of crimes. Household member became a victim of murder, theft, rape, abuse or physical injury regardless of place of occur-rence of the crime.

Annex 2.2.1CBMS INDICATORS

Source: Philippine Institute for Development Studies

134

Annex 2.2.2SAMPLE MATRIX: THE LOCAL DEVELOPMENT INDICATORS

DATA/INFORMATION INDICATOR

GEOGRAPHICAL AREAS

REMARKSPlanning Area

Larger Spatial Unit

Smaller Spatial Units

1 2 N

Population Indicators

a. Population size (2 or 3 census years including latest)

b. Growth rate (1970-1980; 1980-1990; 1970-1990)

c. Gross population density (1970; 1980;1990)

Social Indicators

a. Percent of HH with sanitary toi-lets, latest

b. Percent of third grade malnutri-tion, pre-school, latest

c. Percent of HH below poverty line, (2 reference years)

d. Child Mortality Rate,

Economic Indicators

a. Percent of labor force employed, 2 reference years

b. Dependency ratios, 2 reference years

c. Percent of workers in non-agricul-tural occupation,

2 reference years

d. Ratio of area of land in agricultural production to total A &D,

2 reference years

e. Total number of commercial establishments, 2 reference years

135

City/Municipal Vision:

Sector Sectoral Goal Objectives and Targets StrategiesPrograms, Projects and

Activities

Annex 2.3.1CDP AND ELA PLANNING MATRIX

136

HOW TO UNDERTAKE PROBLEM ANALYSIS

STEP1 Identify the problems

Using “metacards,” list all the problems. One card per problem. Formulate each problem as a negative condition. Problems can be clustered according to sectors in the CDP namely social, economic, physical/infrastructure, environment and development administration

Example: Frequent fl ooding Erosion of vast tracts of land

STEP 2 Establish the cause a-effect relationship among the problems identifi ed

From among the listed problems, try and agree on which is the cause and which is the effect.

Example: damaged crops is caused by deteriorating forest condition

STEP 3 Establish a convergence point (or points)

The convergence point for all the problems identifi ed is referred to as the “core problem” and becomes the over-riding concerning that will have to be addressed

STEP 4 Review the diagram as a whole. Verify the cause and effect relationship and agree on the sound-ness and completeness of the problem tree.

Annex 2.3.2WORKSHOP: PROBLEM ANALYSIS

DETERIORATING FOREST CONDITION

DAMAGED CROPS

FREQUENT FLOODING

HEAVY SILTATIONOVERFLOW OF

RIVERSSOIL EROSION

RAMPANT PRACTICE OF KAINGIN

LACK OF LIVELIHOOD

RAMPANT SMALL SCALE MINING

FOREST COMMUNITIES NOT ORGANIZED

EFFECTS

CAUSES

CORE PROBLEM

SAMPLE PROBLEM TREE OF DETERIORATING FOREST CONDITION

137

Annex 2.4WORKSHOP: VISION-REALITY GAP ANALYSIS WORKSHOP

Guide to a Vision-Reality Gap Analysis

STEP 1 Divide the participants into groups each to correspond to the development sectors.

STEP 2 Each group will be asked to review the descriptors and the set of indicators identifi ed for the element of the vision statement assigned from the previous visioning exercise.

STEP 3 Group members to recall the characterization of the sector as presented in the updated Ecological Profi le and their stock knowledge of the area/sector assigned as a result of the situational analysis conducted.

STEP 4 Using these data, rate the position of the area at present (current reality) with respect to each success indicator.

STEP 5 For any indicator that was rated other than “0”, list down the things that need to be done in order to close the gap. List down possible interventions such as programs, projects and policies that will respond to the gaps.

STEP 6 Share the outputs in the plenary session

Descriptor Success Indicator Rating Interpretation

Healthy Child mortality rate 0 Child mortality rate is increasing during a six year period

Maternal mortality rate 5 50% reduction in maternal mortality rate

SAMPLE MATRIX: VISION-REALITY GAP ANALYSIS

A. Social Goals

B. Economic Goals

Descriptor Success Indicator Rating Interpretation

Vibrant economy

Number of new invest-ments

8 New investments have more than doubled

138

Annex 2.5WORKSHOP: OBJECTIVES ANALYSIS

Developing Goals and Objectives Using Objectives Analysis

The process takes off from the problem analysis undertaken earlier (see Annex 2.3). Using the same grouping in the problem analysis exercise, instruct the groups to go through the following steps:

STEP 1 Reformulate all negative statements in the problem tree into positive statements (see sample Objective Tree of Deteriorating Forest Condition below).

STEP 2 Form a diagram showing means-ends relationships in the form of an objectives tree.

STEP 3 Review the diagram as a whole and verify its validity and completeness.

STEP 4 Reformulate MEANS statements into appropriate strategies, and END statements into appropriate goals .

STEP 5 Add or do away with strategies as appropriate.

SAMPLE OBJECTIVE TREE OF DETERIORATING FOREST CONDITION

IMPROVED FOREST CONDITION

REDUCED SILTATION

REDUCED OVERFLOW OF RIVERS

SOIL EROSION MINIMIZED

REDUCED DAMAGED TO CROPS

REDUCED FLOODING

KAINGIN PRACTICES PREVENTED

FOREST COMMUNITIES ORGANIZED

ORDINANCE CONTROLING SMALL SCALE MINING

LIVELIHOOD PROJECTS PROVIDED

ENDS

MEANS

CORE OBJECTIVE

139

Annex 2.6SWOT ANALYSIS

SWOT Analysis

Guide Questions Internal StrengthsInternal

WeaknessesGuide Questions

Competitive advantages?

Capabilities?

USP's (unique selling points)?

Resources, Assets, People?

Staff specialization, Experience, knowledge, data?

Innovative aspects?

Location and geographical characteristics?

Equipments?

Accreditations (e.g. ISO)

Qualifi cations, Certifi cations?

Processes, systems, IT?

Cultural, attitudinal, behavioural?

Philosophy and values?

SAMPLE

Unique Tourism Assets

Gaps in capabilities?

Lack of competitive strength?

Reputation, presence and reach?

Own known vulnerabilities?

Reliability of data, data gaps?

Morale, commitment, leadership?

Accreditations, etc?

Processes and systems, etc?

Guide Questions External Opportunities External Threats Guide Questions

National thrusts

Market developments?

Industry or lifestyle trends?

Technology development and innovation?

Global infl uences?

New markets, vertical, horizontal?

Niche target markets?

Geographical, export, import?

New USP's?

Information and research?

Partnerships

SAMPLE

Increased interest in ecotourism worldwide

Legislative effects?

Environmental effects?

IT developments?

Market demand?

New technologies, services, ideas?

Vital contracts and partners?

Loss of key staff? Economy

Adapted from Chapman, A 2005

140

Annex 2.7WORKSHOP: PRIORITIZING PROGRAMS AND PROJECTS USING GOAL ACHIEVEMENT MATRIX (GAM)

A step-by-step guide to prioritizing programs and projects using the GAM is provided below. To elucidate on the steps, the process of Dagupan City in prioritizing programs and projects for its LDIP (2003-2005) was used. A total of 28 projects were evaluated.

Prioritizing Programs and Projects Using the GAM

Organize a workshop for prioritizing list of projects. Invite participants from the different sectors of the community, e.g., farmers, fi sherfolk, environmentalists, health workers, youth, women, elderly, disabled, civic groups, businessmen and industrialists, elective and appointive offi cials, media, etc.

STEP 1 Group the participants by sector. In the following example, nine groups were formed (num-bers 1-9 in Table 2.7a below).

STEP 2 List down all sectoral goals. For the workshop example, the nine welfare goals of Sec. 16 (General Welfare clause) of the LGC were used as the reference point for the goals.

STEP 3 Based on the perceived importance of each goal to the interests of the sector, each group will assign weights to each goal. The numerical total of the weights should be 1 or 100%

STEP 4 Each proposed project will be rated by the groups using the following scale:

In our example, the output of two of the groups is shown (Table 2.7b1 and 2.7b2).

STEP 5 The rating is multiplied by the corresponding weight of the goal and the product (score) entered in the appropriate cell (see Table 2.7b1 and 2.7b2). The scores are summed up for each project proposal. Then all sectoral group scores are added as presented in the example in Table 2.7a (Summary of Societal Sectors’ Ratings).

STEP 6 The projects are fi nally arranged according to their total scores. The project with the highest total score is ranked as number one, the next number two, and so on, as shown in Table 2.7c below. Two columns for estimated costs are displayed. One column shows the individual cost of each project and the other refl ects the cumulative or running total.

1 Project contributes slightly to the fulfi llment of goal

2 Project contributes moderately to the fulfi llment of goal

3 Project contributes greatly to the fulfi llment of goal

0 Project does not contribute to the fulfi llment of the goal

-1 Project slightly inconsistent with the fulfi llment of the goal

-2 Project moderately inconsistent with the fulfi llment of the goal

-3 Project greatly inconsistent or contradicts the fulfi llment of the goal

141

SAMPLE: PRIORITIZING PROGRAMS AND PROJECTS USING GAM

No. PROJECTGroup Ratings Total

ScoreRank

1 2 3 4 5 6 7 8 9

1 Bulilit Ko Pan-Aralen Ko: A Pre-School Educa-tion Access Program

1.68 1.77 2.73 0.8 0.8 1.57 1.36 0.75 0.58 12.04 23

2 Dagupan City Ecological Waste Management Plan

1.33 2.71 2.49 1.91 1.2 1.55 1.36 1.63 1.49 15.69 9

3 Upgrading of Water Transport Facilities 1.34 .15 2 1.51 1.62 1.72 1.09 1.96 1.13 12.37 20

4 Modern Slaughterhouse 1.31 1.31 1.65 1.13 1.03 1.48 1.66 1.01 1.46 11.98 22

5 Panangidaungay Bangus (Dagupan City Wholesale Fish Trading Center)

2 1.42 2.49 1.22 1.51 1.69 1.74 1.83 1.3 15.2 12

6 Information and Education Campaign on the CLUP/Zoning Ordinance

1.76 1.66 1.8 2.3 1.56 1.38 1.24 2.22 1.36 15.18 13

7 Redevelopment of Tondaligan People's Park 1.9 1.11 2.22 1.24 0.89 1.97 1.79 2.05 2.01 15.18 13

8 Droga Ed Pantal Agko Gabay 2.25 2.33 1.84 1.64 1.29 1.78 1.57 1.1 1.64 15.44 11

9 MIS for Zoning and Tax Mapping Project 2 1.17 1.53 1.31 1.27 0.96 1.38 0.44 0.93 10.76 25

10 Skills Training for Trading, Services and Liveli-hood Opportunities

1.22 1.54 1.58 1.58 1.24 1.74 1.85 1.61 1.47 13.63 17

11 Malimgas Tan Marakep Ya Ilog (Pantal River-side Redevelopment)

2.03 1.86 2.44 2.28 1.33 1.66 1.5 1.65 1.49 16.24 7

12 Transportation and Traffi c Management Plan for Dagupan City

2.21 2.36 2.48 1.88 1.43 1.44 2.37 2.19 1.73 17.39 5

13 Market Expansion Project 1.67 1.21 1.81 1.48 1.13 1.2 1.98 1.53 1.11 13.12 19

14 merged with 15

15 Katipunan Kakasilan Na Too Ed Dagupan 2.04 2.96 2.62 2.22 0.85 3 1.56 2.15 1.71 19.11 2

16 Dagupan Bangus Processing Plant 1.99 1.77 3 1.68 1.35 2.2 2.2 1.8 1.5 17.49 3

17 Construction and Rehabilitation of Drainage System along Don Jose Calimlim Street, Pogo Chico

1.21 1.16 3 1.23 0.43 1.28 1.39 1.07 1.46 12.23 21

18 Dagupan City Tourism Master Development Plan and Promotion

1.79 2.07 2.58 1.4 1.37 2.36 1.87 1.88 2.12 17.44 4

19 merged with 10 0

20 Development of an Information System on Establishments

0.81 1 2.13 1.68 0.63 1.42 1.55 1.07 1.3 11.59 24

21 CBD Sidewalk Recovery and Improvement 1.13 1.37 2.4 1.69 0.43 1.33 2.24 1.56 1.5 13.65 16

22 Moral Renewal & Capability Building Program 1.91 1.55 2.67 2.02 2.49 1.45 1.13 1.22 1.22 15.66 10

23 Comprehensive Urban Disaster Preparedness and Management Plan

1.45 1.84 2.18 1.89 1.26 1.34 1.85 1.62 1.51 14.94 15

24 River Study Project 1.67 1.95 2.82 2.12 1.26 1.4 2 2.18 1.28 16.68 6

25 Water Quality Monitoring and Assessment 1.31 1.55 2.13 1.86 1.26 1.5 1.73 0.78 1.28 13.4 18

26 Urban Green Space Enhancement & Rehabili-tation of Dagupan City

1.44 2.12 2.42 2.55 1.26 1.66 1.66 1.28 1.41 15.8 8

27 Abong Ko Lusek Ko (My Home, My Pillar): A Comprehensive Concrete Values Training Program

1.46 2.96 1.95 2.19 0.85 1.59 2 0.84 1.23 15.07 14

28 Socialized Housing and Resettlement Program 2 2.38 2 1.9 2.3 2.07 2 2.42 2.37 19.44 1

Table 2.7a Example of Summary of Societal Sectors’ Ratings

Source: Dagupan City LDIP (2003-2005)

142

GO

AL

WEIG

HT

PROJEC

T N

UM

BER

12

34

56

78

910

1112

1314

1617

1820

2122

2324

2526

27

10.12

0.240.12

0.240.00

0.360.24

0.240.24

0.240.12

0.360.24

0.120.36

0.240.00

0.360.12

0.120.36

0.240.24

0.120.24

0.24

20.12

0.240.36

0.240.24

0.240.24

0.240.36

0.240.12

0.360.24

0.240.36

0.240.24

0.240.24

0.240.24

0.240.24

0.240.24

0.24

30.11

0.220.22

0.110.11

0.220.22

0.220.22

0.220.11

0.220.33

0.220.11

0.220.22

0.220.11

0.220.11

0.220.22

0.220.22

0.11

40.10

0.100.10

0.100.20

0.200.20

0.100.10

0.200.10

0.100.20

0.100.10

0.200.10

0.300.11

0.000.10

0.100.10

0.200.10

0.10

50.11

0.330.11

0.000.00

0.110.11

0.220.33

0.110.11

0.110.22

0.000.33

0.110.00

0.110.00

0.110.33

0.000.11

0.110.11

0.22

60.11

0.220.11

0.220.22

0.330.22

0.220.22

0.330.22

0.220.22

0.330.22

0.330.11

0.110.22

0.000.22

0.220.22

0.110.11

0.22

70.11

0.110.11

0.110.22

0.220.11

0.220.22

0.220.22

0.220.22

0.220.22

0.330.22

0.11-0.11

0.000.11

0.110.22

0.110.22

0.11

80.12

0.120.00

0.120.12

0.120.22

0.240.36

0.240.12

0.240.24

0.240.24

0.120.12

0.240.12

0.240.24

0.120.12

0.000.00

0.12

90.10

0.100.20

0.200.20

0.200.20

0.200.20

0.200.10

0.200.30

0.200.10

0.200.20

0.100.00

0.200.20

0.200.20

0.200.20

0.10

Total1.00

1.681.33

1.341.31

21.76

1.92.25

21.22

2.032.21

1.672.04

1.991.21

1.790.81

1.131.91

1.451.67

1.311.44

1.46

Table 2.7b1: Group 1 O

utput

GO

AL

WEIG

HT

PROJEC

T N

UM

BER

12

34

56

78

910

1112

1314

1617

1820

2122

2324

2526

2728

10.07

0.070.07

-0.070.00

0.210.07

0.210.14

0.070.07

0.070.14

0.070.21

0.140.00

0.210.07

0.000.07

0.140.07

0.000.14

0.210.07

20.16

0.160.48

-0.160.48

0.320.32

0.160.48

0.160.32

0.480.32

0.160.48

0.480.48

0.320.16

0.320.16

0.480.48

0.480.48

0.480.32

30.12

0.240.36

-0.120.12

0.120.36

0.240.12

0.120.12

0.240.12

0.120.36

0.120.12

0.240.12

0.240.12

0.120.36

0.240.36

0.360.24

40.06

0.120.18

0.060.06

0.120.12

0.000.06

0.060.12

0.060.06

0.060.18

0.120.06

0.120.06

0.000.06

0.120.06

0.060.12

0.180.06

50.19

0.570.57

0.190.19

0.000.19

0.000.57

0.000.19

0.190.38

0.190.57

0.190.19

0.380.19

0.000.57

0.190.19

0.190.38

0.570.57

60.18

0.180.54

0.180.36

0.540.36

0.180.36

0.540.54

0.540.36

0.360.54

0.540.18

0.360.18

0.380.54

0.540.54

0.360.36

0.540.54

70.04

0.040.12

0.040.04

0.080.00

0.080.12

0.040.12

0.040.08

0.040.08

0.120.04

0.080.04

0.040.00

0.040.04

0.040.04

0.080.04

80.15

0.300.30

0.000.00

0.000.15

0.150.45

0.150.00

0.150.30

0.150.45

0.000.00

0.300.15

0.300.00

0.150.15

0.150.15

0.450.45

90.03

0.090.09

0.030.06

0.030.09

0.090.03

0.030.06

0.090.60

0.060.09

0.060.09

0.060.03

0.090.03

0.060.06

0.030.09

0.090.09

Total1.00

1.772.71

0.151.31

1.421.66

1.112.33

1.171.54

1.862.36

1.212.96

1.771.16

2.071

1.371.55

1.841.95

1.552.12

2.962.38

Table 2.7b2: Group 2 O

utput

143

Rank Project Title Type SectorCost Estimate (Pesos)

Individual Cumulative

1 Socialized Housing and Resettlement Program Hard Social 758,000,000 758,000,000

2 Katipunan Kakasilan Na Too Ed Dagupan Soft Social 5,900,000 763,900,000

3 Dagupan Bangus Processing Plant Hard Economic 150,000,000 913,900,000

4 Dagupan City Tourism Master Development Plan and Promotion

Soft Economic 4,000,000 917,900,000

5 Transportation and Traffi c Management Plan for Dagupan City

Soft Land Use & Infrastructure

940,000 918,840,000

6 River Study Project Hard Environment 2,000,000 920,840,000

7 Malimgas Tan Marakep Ya Ilog (Pantal Riverside Redevelopment)

Hard Land Use & Infrastructure

8,606,000 929,446,000

8 Urban Green Space Enhancement & Rehabilitation of Dagupan City

Hard Environment 5,300,000 934,746,000

9 Dagupan City Ecological Waste Management Plan Soft Environment 26,700,000 961,446,000

10 Moral Renewal and Capability Building Program Soft Institutional 1,620,000 963,066,000

11 Droga Ed Pantal Agko Gabay Soft Social 393,000 963,459,000

12 Panangidaungay Bangus (Dagupan City Wholesale Fish Trading Center)

Hard Land Use & Infrastructure

104,580,000 1,068,039,000

13 Information & Education Campaign on the CLUP/ Zoning Ordinance

Soft Institutional 500,000 1,068,539,000

13 Redevelopment of Tondaligan People's Park Hard Land Use & Infrastructure

17,900,000 1,086,439,000

15 Abong Ko Lusek Ko (My Home, My Pillar ): A Comprehensive Concrete Values Training Program

Soft Social 1,700,000 1,088,139,000

16 Comprehensive Urban Disaster Preparedness and Management Plan

Soft Environment 6,500,000 1,094,639,000

17 CBD Sidewalk Recovery and Improvement Hard Land Use & Infrastructure

8,700,000 1,103,339,000

18 Skills Training for Trading, Services and Livelihood Opportunities

Soft Economic 1,200,000 1,104,539,000

19 Water Quality Monitoring and Assessment in Dagupan City

Soft Environment 2,000,000 1,106,539,000

20 Market Expansion Project Hard Institutional 505,000,000 1,611,539,000

21 Upgrading of Water Transport Facilities Hard Land Use & Infrastructure

2,400,000 1,613,939,000

22 Construction and Rehabilitation of Drainage Sys-tem along Don Jose Calimlim Street, Pogo Chico

Hard Land Use & Infrastructure

1,200,000 1,615,139,000

23 Modern Slaughterhouse Hard Institutional 24,000,000 1,639,139,000

24 Bulilit Ko Pan-Aralen Ko: A Pre-School Education Access Program

Soft Social 2,190,000 1,641,329,000

25 Development of an Information System on Estab-lishments

Soft Economic 1,500,000 1,642,829,000

26 MIS for Zoning and Tax Mapping Project Soft Institutional 2,570,000 1,645,399,000

Table 2.7c: Example of Ranked List of Projects with Cost Estimates

Source: Dagupan City LDIP (2003-2005)

144

No. PROJECT

Group Ratings

1 2 3 4 5 6 7 8 9Total Score

Rank

1 Bulilit Ko Pan-Aralen Ko: A Pre-School Educa-tion Access Program

1.68 1.77 2.73 0.8 0.8 1.57 1.36 0.75 0.58 12.04 23

2 Dagupan City Ecological Waste Management Plan

1.33 2.71 2.49 1.91 1.2 1.55 1.36 1.63 1.49 15.69 9

3 Upgrading of Water Transport Facilities 1.34 .15 2 1.51 1.62 1.72 1.09 1.96 1.13 12.37 20

4 Modern Slaughterhouse 1.31 1.31 1.65 1.13 1.03 1.48 1.66 1.01 1.46 11.98 22

5 Panangidaungay Bangus (Dagupan City Wholesale Fish Trading Center)

2 1.42 2.49 1.22 1.51 1.69 1.74 1.83 1.3 15.2 12

6 Information and Education Campaign on the CLUP/Zoning Ordinance

1.76 1.66 1.8 2.3 1.56 1.38 1.24 2.22 1.36 15.18 13

7 Redevelopment of Tondaligan People's Park 1.9 1.11 2.22 1.24 0.89 1.97 1.79 2.05 2.01 15.18 13

8 Droga Ed Pantal Agko Gabay 2.25 2.33 1.84 1.64 1.29 1.78 1.57 1.1 1.64 15.44 11

9 MIS for Zoning and Tax Mapping Project 2 1.17 1.53 1.31 1.27 0.96 1.38 0.44 0.93 10.76 25

10 Skills Training for Trading, Services and Liveli-hood Opportunities

1.22 1.54 1.58 1.58 1.24 1.74 1.85 1.61 1.47 13.63 17

11 Malimgas Tan Marakep Ya Ilog (Pantal River-side Redevelopment)

2.03 1.86 2.44 2.28 1.33 1.66 1.5 1.65 1.49 16.24 7

12 Transportation and Traffi c Management Plan for Dagupan City

2.21 2.36 2.48 1.88 1.43 1.44 2.37 2.19 1.73 17.39 5

13 Market Expansion Project 1.67 1.21 1.81 1.48 1.13 1.2 1.98 1.53 1.11 13.12 19

14 merged with 15

15 Katipunan Kakasilan Na Too Ed Dagupan 2.04 2.96 2.62 2.22 0.85 3 1.56 2.15 1.71 19.11 2

16 Dagupan Bangus Processing Plant 1.99 1.77 3 1.68 1.35 2.2 2.2 1.8 1.5 17.49 3

17 Construction and Rehabilitation of Drainage System along Don Jose Calimlim Street, Pogo Chico

1.21 1.16 3 1.23 0.43 1.28 1.39 1.07 1.46 12.23 21

18 Dagupan City Tourism Master Development Plan and Promotion

1.79 2.07 2.58 1.4 1.37 2.36 1.87 1.88 2.12 17.44 4

19 merged with 10 0

20 Development of an Information System on Establishments

0.81 1 2.13 1.68 0.63 1.42 1.55 1.07 1.3 11.59 24

21 CBD Sidewalk Recovery and Improvement 1.13 1.37 2.4 1.69 0.43 1.33 2.24 1.56 1.5 13.65 16

22 Moral Renewal & Capability Building Program 1.91 1.55 2.67 2.02 2.49 1.45 1.13 1.22 1.22 15.66 10

23 Comprehensive Urban Disaster Preparedness and Management Plan

1.45 1.84 2.18 1.89 1.26 1.34 1.85 1.62 1.51 14.94 15

24 River Study Project 1.67 1.95 2.82 2.12 1.26 1.4 2 2.18 1.28 16.68 6

25 Water Quality Monitoring and Assessment 1.31 1.55 2.13 1.86 1.26 1.5 1.73 0.78 1.28 13.4 18

26 Urban Green Space Enhancement & Rehabili-tation of Dagupan City

1.44 2.12 2.42 2.55 1.26 1.66 1.66 1.28 1.41 15.8 8

27 Abong Ko Lusek Ko (My Home, My Pillar): A Comprehensive Concrete Values Training Program

1.46 2.96 1.95 2.19 0.85 1.59 2 0.84 1.23 15.07 14

28 Socialized Housing and Resettlement Program 2 2.38 2 1.9 2.3 2.07 2 2.42 2.37 19.44 1

Sample: Prioritizing Programs and Projects Using GAM

Table 2.7a Example of Summary of Societal Sectors’ Ratings

Source: Dagupan City LDIP (2003-2005)

145

GO

AL

WEIG

HT

PROJEC

T N

UM

BER

12

34

56

78

910

1112

1314

1617

1820

2122

2324

2526

27

10.12

0.240.12

0.240.00

0.360.24

0.240.24

0.240.12

0.360.24

0.120.36

0.240.00

0.360.12

0.120.36

0.240.24

0.120.24

0.24

20.12

0.240.36

0.240.24

0.240.24

0.240.36

0.240.12

0.360.24

0.240.36

0.240.24

0.240.24

0.240.24

0.240.24

0.240.24

0.24

30.11

0.220.22

0.110.11

0.220.22

0.220.22

0.220.11

0.220.33

0.220.11

0.220.22

0.220.11

0.220.11

0.220.22

0.220.22

0.11

40.10

0.100.10

0.100.20

0.200.20

0.100.10

0.200.10

0.100.20

0.100.10

0.200.10

0.300.11

0.000.10

0.100.10

0.200.10

0.10

50.11

0.330.11

0.000.00

0.110.11

0.220.33

0.110.11

0.110.22

0.000.33

0.110.00

0.110.00

0.110.33

0.000.11

0.110.11

0.22

60.11

0.220.11

0.220.22

0.330.22

0.220.22

0.330.22

0.220.22

0.330.22

0.330.11

0.110.22

0.000.22

0.220.22

0.110.11

0.22

70.11

0.110.11

0.110.22

0.220.11

0.220.22

0.220.22

0.220.22

0.220.22

0.330.22

0.11-0.11

0.000.11

0.110.22

0.110.22

0.11

80.12

0.120.00

0.120.12

0.120.22

0.240.36

0.240.12

0.240.24

0.240.24

0.120.12

0.240.12

0.240.24

0.120.12

0.000.00

0.12

90.10

0.100.20

0.200.20

0.200.20

0.200.20

0.200.10

0.200.30

0.200.10

0.200.20

0.100.00

0.200.20

0.200.20

0.200.20

0.10

Total1.00

1.681.33

1.341.31

21.76

1.92.25

21.22

2.032.21

1.672.04

1.991.21

1.790.81

1.131.91

1.451.67

1.311.44

1.46

Table 2.7b1: Group 1 O

utput

GO

AL

WEIG

HT

PROJEC

T N

UM

BER

12

34

56

78

910

1112

1314

1617

1820

2122

2324

2526

2728

10

.07

0.070.07

-0.070.00

0.210.07

0.210.14

0.070.07

0.070.14

0.070.21

0.140.00

0.210.07

0.000.07

0.140.07

0.000.14

0.210.07

20

.160.16

0.48-0.16

0.480.32

0.320.16

0.480.16

0.320.48

0.320.16

0.480.48

0.480.32

0.160.32

0.160.48

0.480.48

0.480.48

0.32

30

.120.24

0.36-0.12

0.120.12

0.360.24

0.120.12

0.120.24

0.120.12

0.360.12

0.120.24

0.120.24

0.120.12

0.360.24

0.360.36

0.24

40

.06

0.120.18

0.060.06

0.120.12

0.000.06

0.060.12

0.060.06

0.060.18

0.120.06

0.120.06

0.000.06

0.120.06

0.060.12

0.180.06

50

.190.57

0.570.19

0.190.00

0.190.00

0.570.00

0.190.19

0.380.19

0.570.19

0.190.38

0.190.00

0.570.19

0.190.19

0.380.57

0.57

60

.180.18

0.540.18

0.360.54

0.360.18

0.360.54

0.540.54

0.360.36

0.540.54

0.180.36

0.180.38

0.540.54

0.540.36

0.360.54

0.54

70

.04

0.040.12

0.040.04

0.080.00

0.080.12

0.040.12

0.040.08

0.040.08

0.120.04

0.080.04

0.040.00

0.040.04

0.040.04

0.080.04

80

.150.30

0.300.00

0.000.00

0.150.15

0.450.15

0.000.15

0.300.15

0.450.00

0.000.30

0.150.30

0.000.15

0.150.15

0.150.45

0.45

90

.03

0.090.09

0.030.06

0.030.09

0.090.03

0.030.06

0.090.60

0.060.09

0.060.09

0.060.03

0.090.03

0.060.06

0.030.09

0.090.09

Total1.0

01.77

2.710.15

1.311.42

1.661.11

2.331.17

1.541.86

2.361.21

2.961.77

1.162.07

11.37

1.551.84

1.951.55

2.122.96

2.38

Table 2.7b2: Group 2 O

utput

146

Rank Project Title Type SectorCost Estimate (Pesos)

Individual Cumulative

1 Socialized Housing and Resettlement Program Hard Social 758,000,000 758,000,000

2 Katipunan Kakasilan Na Too Ed Dagupan Soft Social 5,900,000 763,900,000

3 Dagupan Bangus Processing Plant Hard Economic 150,000,000 913,900,000

4 Dagupan City Tourism Master Development Plan and Promotion

Soft Economic 4,000,000 917,900,000

5 Transportation and Traffi c Management Plan for Dagupan City

Soft Land Use & Infrastructure

940,000 918,840,000

6 River Study Project Hard Environment 2,000,000 920,840,000

7 Malimgas Tan Marakep Ya Ilog (Pantal Riverside Redevelopment)

Hard Land Use & Infrastructure

8,606,000 929,446,000

8 Urban Green Space Enhancement & Rehabilitation of Dagupan City

Hard Environment 5,300,000 934,746,000

9 Dagupan City Ecological Waste Management Plan Soft Environment 26,700,000 961,446,000

10 Moral Renewal and Capability Building Program Soft Institutional 1,620,000 963,066,000

11 Droga Ed Pantal Agko Gabay Soft Social 393,000 963,459,000

12 Panangidaungay Bangus (Dagupan City Whole-sale Fish Trading Center)

Hard Land Use & Infrastructure

104,580,000 1,068,039,000

13 Information & Education Campaign on the CLUP/ Zoning Ordinance

Soft Institutional 500,000 1,068,539,000

13 Redevelopment of Tondaligan People's Park Hard Land Use & Infrastructure

17,900,000 1,086,439,000

15 Abong Ko Lusek Ko (My Home, My Pillar ): A Comprehensive Concrete Values Training Program

Soft Social 1,700,000 1,088,139,000

16 Comprehensive Urban Disaster Preparedness and Management Plan

Soft Environment 6,500,000 1,094,639,000

17 CBD Sidewalk Recovery and Improvement Hard Land Use & Infrastructure

8,700,000 1,103,339,000

18 Skills Training for Trading, Services and Livelihood Opportunities

Soft Economic 1,200,000 1,104,539,000

19 Water Quality Monitoring and Assessment in Dagupan City

Soft Environment 2,000,000 1,106,539,000

20 Market Expansion Project Hard Institutional 505,000,000 1,611,539,000

21 Upgrading of Water Transport Facilities Hard Land Use & Infrastructure

2,400,000 1,613,939,000

22 Construction and Rehabilitation of Drainage Sys-tem along Don Jose Calimlim Street, Pogo Chico

Hard Land Use & Infrastructure

1,200,000 1,615,139,000

23 Modern Slaughterhouse Hard Institutional 24,000,000 1,639,139,000

24 Bulilit Ko Pan-Aralen Ko: A Pre-School Education Access Program

Soft Social 2,190,000 1,641,329,000

25 Development of an Information System on Estab-lishments

Soft Economic 1,500,000 1,642,829,000

26 MIS for Zoning and Tax Mapping Project Soft Institutional 2,570,000 1,645,399,000

Table 2.7c: Example of Ranked List of Projects with Cost Estimates

Source: Dagupan City LDIP (2003-2005)

147

Annex 2.8SAMPLE RESOLUTION ADOPTING THE EXECUTIVE LEGISLATIVE AGENDA

RESOLUTION NO. ____, Series of ___

ADOPTING THE EXECUTIVE AND LEGISLATIVE AGENDA OF THECITY / MUNICIPALITY OF ___________, PROVINCE OF ____________________

WHEREAS, the Executive and Legislative Agenda (ELA) sets the local government’s strategic directions for the next three years and provides an explicit expression of the present administration’s goals, objectives, strategic priorities and programs that are consistent with the LGU vision and missions;

WHEREAS, the formulation of the ELA involved the participation of various stakehold-ers in the community in its various stages, from needs identifi cation to plan implementation, monitoring and evaluation;

WHEREAS, the ELA represents the collective aspiration, needs and priorities of the lo-cal community and therefore enjoys broad-based support;

WHEREAS, the ELA is this administration’s sincere invitation to all its constituents and resource institutions to be its pro-active partners in progress;

NOW THEREFORE, this body in session assembled,

RESOLVED, to adopt as it hereby adopts the Executive and Legislative Agenda of the Munici-pality/City of ________________________, Province of ____________________.

I hereby certify to the correctness of the foregoing resolution which was duly adopted by the Sanggunian Bayan/Panglungsod during its Regular Session on _____________________.

_______________________________________________Secretary to the Sangguniang Bayan/Panglungsod

ATTESTED:_________________________Presiding Offi cer

SB/ P Member SB/ P Member SB/ P Member

SB/ P Member SB/ P Member SB/ P Member

APPROVED:__________________________________ Municipal/ City Mayor

148

Annex 2.9MAINSTREAMING PEACE AND CONFLICT IMPACT ASSESSMENT IN LOCAL DEVELOPMENT PLANNING (LDP) AND BUDGET PREPARATION (BP)

LDP PROCESS& BP

PCIA STEPSWHOWILL

PARTICIPATE

WHO WILL FACILITATE

KEY QUESTIONS

1. Situation analysis:

- confl ict analysis

- Assessing the confl ict environment

MDC (Municipal Development Council)

MDC (Municipal Development Council)

- What are the types of confl ict & stages of the confl ict being experienced in the area?

- Is there competition on re-source: what kind of resource, who are the groups interested to have control of resource, how is the allocation of ben-efi ts being done?

- Is there a confl ict manage-ment and confl ict resolution mechanism in place?

2. Planning-identify key is-sues & priority projects

ROA (what are risks or opportunities existing in the environ)

MDC (Municipal Development Council)

MDC (Municipal Development Council)

Location- What are the possible im-

pacts of the location on the proposed projects?

Timing- How might the timing of the

proposed project affect its chances of success?

Political Factors - How might the changing

political context affect the proposed projects?

Militarized Violence & Human Security- What is the possible impact

of militarized confl ict on the PP?

- What socio-economic factors might affect the PP?

- Is the project appropriate in terms of structure, objectives, process and etc.?- Are there other factors that

might affect the PP (eg. national disaster, environment fragility)

149

LDP PROCESS& BP

PCIA STEPSWHOWILL

PARTICIPATE

WHO WILL FACILITATE

KEY QUESTIONS

3. Plan & bud-get approval

a. fi nalization of priority projects w/ budget by MDC

b. submission to legislative body

c. approval by Sanggunian

Peace & Con-fl ict Impact Assessment (on the differ-ent area per poject)

MDC (Municipal Development Council)

MDC (Municipal Development Council)

Key questions in relation to the different impact areas:Confl ict Management Capaci-ties:- Will the PP provide opportuni-

ties for individuals / groups to get involved in responding to peace building efforts?

Militarization/armed & human security:- Will the PP affect the people’s

sense of security positively or negatively? how?

- Will the PP affect the military/paramilitary/criminal environ-ment directly /indirectly, positively/negatively? How?

- Will there be real improve-ments in the political, eco-nomic, physical, food security among men and women?

- How can benefi ts be more broadly or fairly distributed?

Political structure & processes- Will the PP help or hinder the

strengthening of the relation-ship among stakeholders in the municipality? How?

- Will the PP have positive or negative impact on the politi-cal structures and processes?

- What will be the impact of the PP on the HR conditions within the municipality?

Economic structure & Processes- Will the PP contribute to or

distract from efforts to recon-struct damaged economic and social infra?

- Will the PP address the un-equal distribution of wealth?

Social Empowerment - Will the PP create or support

equity and justice?- Will the PP be shared equita-

bly by both genders?- Will the PP contribute to

positive communication or interaction?

150

Annex 3.0CRITERIA FOR ROLL-UP OF PROVINCIAL INVESTMENT PROGRAM TO THE REGIONAL DEVELOPMENT INVESTMENT PROGRAM

NO CRITERIAMAX

SCOREDETAILED

SCORE

I COVERAGE AND IMPACT 30

1. Area (geographical area covered)*

a. Inter-provincial 15

b. Inter-municipality/city 10

c. Inter-barangay 5

2. POPULATION

a. 10.001 ABOVE 15

b. 5,001 to 10,000 10

c. 1,000 to 5,000 5

II MDG RESPONSIVENESS** 20

1. Poverty status (high, high) 5

2. Health and Education (low, high) 5

3. Gender Responsiveness (high, high) 5

4. Environment-sensitive (high, high) 5

III COMPLEMENTATION AND LINKAGES** 20

1. Within the RPFP strategies/RDP spatial framework 10

2. Within the RDP/RDIP priority projects 5

3. Project technical readiness/preparedness 5

IV. LGU’S READINESS AND PERFORMANCE** 15

1. Presence of functional performance management system, e.g. LGPMS

5

2. Annual infra projects (high, high) 5

3. ODA projects implementation 9high, high) 5

Legend* Choose only one answer** Answer all itmesPoverty incidence-the higher the poverty incidence of the province, the higher the scoreMDG Status – the lower the achievement level, the higher the score

RPFP StrategiesMainland – Linear-corridor Development Strategy (Establishment of Regional Agri-Industrial Center at Polloc, Shariff Kabunsuan and Provincila Investment Estates at Malabang, Lanao Sur; S. Aguak, Mag; and DOS, SKIsland Provinces –Tri polar strategy (PIEs at Jolo, Sulu; Lamitan, Basilan; and Bongao, Tawi-Tawi

RDP Spatial FrameworkMaguindanao/S. Kab. – Showcase of Diversifi ed Agriculture; Lanao Sur – Home of the Lake, hydro power in MindanaoSulu- Exotic crops capital of ARMM; Tawi-Tawi – ASEAN’s Best: Gateway to EAGABasilan/ Lamitan City – Center of Commercial crops; Marawi City- city by the lake, Center of Islamic Education, Culture and Arts

Project preparedness levels: 1) Project concept 2) Project proposal/NEDA Form 101, and 3) Project Feasibility StudyLGU readiness –the presence of functional performance management system such as LGPMS gets higher scoreAnnual infra projects – good performance entails higher scoreODA projects implementation- good performance entails higher score

151

ReferencesARMM Regional Executive Agenda and Development Investment program (2006-2008), Regional Planning and Development Offi ce

Rationalized Planning System, Sourcebook for Local Government Units, DILG-Bureau of Local Government Development, 2006

The Evolving Roles of CBMS in the Philippines Amidst New Challenges, Various Paper Presentations during the 3rd National Conference on CBMS, September 28-30, 2005

Recommendations for Using LGPMS in the Rationalized Planning System for LGUs, Paper Submission to LGSP and DILG by Eric Libre, Consultant, 2006

Managing Knowledge for Improved Local Governance Performance: A Guidebook on Capacity Development Agenda Formulation, LGA

Pabalan, M, Paran J, & Caluen, I (2004). How to Formulate an Executive and Legislative Agenda for Local Governance and Development: Facilitator’s Guide, Philippines-Canada Local Government Support Program, Manila, Philippines

Tanggol S (1990). Regional Autonomy and Social Development: Some Notes on the Case of Muslim Mindanao in Local Government in the Philippines: A Book of Readings (Vol-ume II). Eds Proserpina Tapales, et al. Center for Local and Regional Governance