A Manual on the Local Planning Process: Formulating the CDP and Technical Team

ELA in ARMM
Copyright © 2009 Local Governance Support Program in ARMM Writer
(LGSPA) Julie Catherine Paran

All rights reserved. Technical Advisor

Divina Luz Lopez
The Local Governance Support Program in ARMM (LGSPA) encourages
the use, translation, adaptation and copying of this material for non- Editorial and Creative Direction
commercial use, with appropriate credit given to LGSPA. Myn Garcia

Although reasonable care has been taken in the preparation of this Technical Review Team
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liability for any consequences arising from the use thereof or from any Isa Romancap, Provincial Director, DILG- Maguindanao
information contained herein. Eva K. Tan
Divina Luz Lopez
ISBN 978-971-94065-1-8 Merlinda Hussein
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 A MANUAL ON THE LOCAL PLANNING PROCESS:
Formulating the CDP and ELA in ARMM
Contents
LIST OF TABLES II
LIST OF FIGURES III
LIST OF BOXES IV
FOREWORD 1
ACKNOWLEDGEMENTS 3
PREFACE 5
INTRODUCTION 7
Some Implications of ARMM Autonomy 7
Autonomy, Planning and Responsive Service Delivery 8
Rationalized Planning System 9
The Major LGU Plans and Implementing Mechanisms 10
ABOUT THE MANUAL 13 I
GETTING STARTED 15
1.1 Orienting the Local Chief Executive and the Sangguniang Bayan/Panlungsod 15
1.2 Organizing and Mobilizing the Planning Team 17
1.3 Training the Planning Team 23
1.4 Conducting Preliminary Work 23
FORMULATING THE PLAN 27
2.1 The CDP and ELA 27
2.2 Legislation and Policy Issuances on CDP and ELA 29
2.3 The CDP and ELA Formulation Process 30
2.4 Integrating Plans 32
2.5 Updating the CDP and ELA 33
2.6 Formulating/Revisiting the LGU Vision and Mission Statements 34
2.7 Determining the Vision-Reality Gap 37
2.8 Formulating/Validating Goals and Objectives 50
2.9 Formulating Strategies 57
2.10 Identifying Programs and Projects 59
2.11 Determining CDP Legislative Requirements 61
GEARING UP FOR PLAN IMPLEMENTATION 65
3.1 Formulating the Executive and Legislative Agenda 65
3.2 Integrating Lower Level Plans 71
3.3 The Local Development Investment Program 71
3.4 The Annual Investment Program 91
3.5 Translating the AIP into the Budget 97
3.6 Determining Capacity Development Needs for ELA Implementation 101
ADVOCATING THE PLAN 107
4.1 The Communications Plan 107
4.2 Developing the Communications Plan 108
4.3 Implementing the Communications Plan 112
 MONITORING & EVALUATION 115
5.1 What is Monitoring and Evaluation (M & E)? 115
5.2 Developing the M & E Strategy 119
5.3 Effectively Communicating and Using M&E Results 121
ANNEXES 125

LIST OF TABLES

Table 0.1 Hierarchy and Relationship of LGU Plans 12

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

Figure 1.1 Structure of the Planning Team 21

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

LIST OF BOXES

Box 1.2 PICT as Functional Committee of the LDC in ARMM 17

Box 1.3 Multi-stakeholder Participation in CDP and ELA Formulation: 18
The Buldon, Maguindanao Experience 18
Box 1.4 Benefits of Training Elective Officials: The Case of Upi, Maguindanao 23
Box 1.5 Formulating the CDP and ELA 25
Box 2.1 Calanogas, Lanao del Sur’s Poverty Reduction Thrust: Working
Hand-in-Hand with National Government 33
Box 2.2 Formulating the Vision 34 III
Box 2.3 Examples of LGU Visions 35
Conflict Sensitive and Peace Promoting Vision 35
Turtle Islands, Tawi Tawi Vision: Ambitious yet Well-grounded 35
Basilan’s Shared Vision that Recognizes Diversity 35
Box 2.7 Types of Vision Statements 36
Box 2.6 Tips in Crafting the Vision 36
Box 2.8 Conflict Sensitive and Peace Promoting Mission 37
Sumisip, Basilan Mission: 37
Achieving the Purpose through People Participation 37
Box 2.11 Examples of ARMM Mission Statements 38
Box 2.11 Examples of ARMM Mission Statements 39
Box 2.12 SMART Criteria for Developing Goals and Objectives 52
Box 2.13 Importance of Project Identification Phase 59
Box 2.14 Adapting Good Practice: the Southwestern Liguasan Alliance of
Municipalities (SLAM), Maguindanao 60
Box 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 67
Box 3.4 Sample Format Of The Executive And Legislative Agenda 69
Box 3.5 The LDIP 71
Box 3.6 Preparing Project Briefs 78
Box 3.7 Managing the Fiscal Gap in Barangay Sarmiento, Parang, Maguindanao 88
Box 3.8 Example of a Financing Scheme for LGU Projects: 90
Local Urban Water Supply Project of the Development Bank of the Philippines (DBP) 90
Box 3.9 Example of Capacity Assessment for a Revenue Goal 104
Box 4.1 Pre-testing Methods for Communication Strategies 112
Box 5.1 Conducting Orientation Meeting for the Monitoring Team 117
Box 5.2 The 120 Days Governor’s Report of Shariff Kabunsuan 119
Box 5.3 The State of Local Governance Report of the Municipality of Wao, Lanao del Sur 122
Measuring LGU Performance 122
IV
Foreword
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 significant and timely
1
contribution to the Department’s continuing efforts 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 effective 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 effective 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 effectiveness 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 efforts to make local autonomy more meaningful for the people of ARMM.
 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. Adiong

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

2
A cknowledgements
HIS PUBLICATION WAS MADE POSSIBLE THROUGH THE
dedication and collective efforts 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 …
3
… 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 Officers, 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 difference in promoting good governance in ARMM
4
Preface
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 5
commitment of LGSPA to knowledge building and sharing in the arena of local
governance in ARMM.

This publication is aligned with LGSPA’s efforts 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) reconfigure 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 different LGUs in planning and budgeting.
 The CDP and the ELA have been shown to be powerful tools to guide local officials
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 officials, 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)

6
Introduction
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:

1. Administrative organization
2. Creation of sources of revenues
3. Ancestral domain and natural resources
4. Personal, family, and property relations
5. Regional urban and rural planning development 7
6. Economic, social, and tourism development
7. Educational policies
8. Preservation and development of the cultural heritage and
9. Such other matters as may be authorized by law for the promotion of
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 flexibility 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 effective partners in the attain-
ment of regional goals.
 A strong argument that has been put forward in favor of local autonomy is its positive
effects to the more efficient, effective and responsive delivery of services. It has been
argued that government efforts 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 efficiency (de-
fined 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 fit the region’s conditions without losing sight of the experiences and
lessons learned of other local governments outside ARMM.

8 The Phase II of the Local Government Support Program’s (LGSP II) efforts to improve
the allocative efficiency 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 effective in guiding how LGUs spent their budgets during
their term of office, it was not sufficient in ensuring continuity of funding for programs
and projects that go beyond the term of office of elected local officials. 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 effort 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
fiscal responsibility in the region. Through the ELA, LGUs are able to link their spend-
ing decisions to the real needs and priorities of their respective jurisdictions. These plans
can provide direction as well as the impetus for local officials to become effective 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 different levels of government suffer 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:
9
1. reducing the number of plans that LGUs must prepare to the two comprehensive
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;
2. reconfiguring the planning process from its traditional technocratic form into one
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 affect their lives;
3. emphasizing the importance of strengthening the Local Development Councils
(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);
4. underscoring the importance of the legislative body as partners of the executive
branch in advancing the general welfare of its constituents, thus both have important
roles to play in planning for their jurisdictions
5. promoting the development of a medium term CDP (6 years) to align with the MT-
PDP and MTPIP, and a term-based action plan of the CDP (3 years) which becomes
the LGU’s Executive-Legislative Agenda (ELA).
 To further facilitate the interface between LGUs and national government agencies and the
complementation between and among the different 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
efficiently (allocative efficiency). The ELA based LDIP and AIP are valuable instruments
10 for ensuring that desired results or goals of the local governments are achieved. Alloca-
tive efficiency 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 LGU
• Provides the skeletal framework which defines the desired physical pattern of growth
of the locality and identifies areas where development can and cannot be located and
directs public and private investments accordingly
• Has four policy areas – production, settlements, protection and infrastructure
• Is the local equivalent or counterpart of the physical framework plan at the national,
regional and provincial levels
• Is 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 five 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 11
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 officials, the
ELA may also contain other thrusts and priorities of the executive and legislative depart-
ments which may not have been identified 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 effect 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.
 Table 0.1: Hierarchy and Relationship of LGU Plans

Plans Definition Main Contents Time-frame Legal Basis

CLUP Policy guide for the regula- Policies on settlements, 10-15 years Sec. 447, 458,
tion of land uses embracing protected areas, production 468 of LGC
the LGU’s entire territorial areas, and infrastructure
jurisdiction
CDP Multi-sectoral plan to pro- Sectoral goals, objectives, 6 years Sec 476b (1)
mote the general welfare of strategies, programs, projects and (5) of LGC
the LGU. and legislative measures
ELA Term-based component of Priority sectoral goals, objec- 3 years Sec. 444, 455,
the CDP tives, strategies, programs and 465
and projects, legislative
measures
LDIP Principal instrument for Prioritized PPAs and program 3 years Sec. 305
implementing the CDP and for planned financing
ELA and to some extent, cer-
tain aspects of the CLUP
AIP One year slice of the LDIP Prioritized PPAs proposed for 1 year Sec. 305
inclusion in the annual local 444, 455,
budget. 465

12
About the Manual
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 effort to enhance and

rationalize planning at the local level as well as strengthen the plan-
ning capacities of LGUs. It is an offshoot of an earlier manual on How to 13
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 modified
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 officials.
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 reflects 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-
 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, conflict 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 specifically the Local Planning and Develop-
ment Office, 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
14 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 reflect 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.
Getting Started
T
he 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 officials. The following steps are
necessary to help ensure a more collaborative effort between the executive
and legislative departments in the LGU as well as provide impetus for the
active participation of different stakeholders in the LGU. In ARMM, both
formal and informal groups and structures that recognize cultural and po-
15
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 influential 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 first 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 first order of the day.
 Who will conduct the Orientation?

The orientation activity may be conducted by the Box 1.1

Local Planning and Development Coordinator Additional Topics for ARMM
(LPDC) and the Local Government Operations
For conflict-prone LGUs, the orien-
Officer (LGOO). Given the extensive experience tation topics need to be expanded
of PICT members in assisting LGUs in developing to include sessions on conflict sen-
their CDP and ELA in ARMM, it is recommend that sitive and peace promoting planning
particularly:
they be brought in to provide support in orienting
the LCE and the SP/SB. • Peace, violent conflict, struc-
tural violence and its many
What will the Orientation cover? faces at the local level, and
• Human security and its require-
ments.
The orientation will involve a discussion on the fol-
lowing: Early on, the LCE and the SB/SP
need to appreciate and understand
key concepts in human security
a. Overview of the Local Planning Process and and conflict sensitivity and its ap-
the types of plans that LGUs are mandated to plications in local governance and
planning.
prepare
b. The CDP and ELA as management tools
c. The CDP and ELA formulation process within
the context of the local budget cycle
16 d. Preparedness Check to assist the Local Chief Executive (LCE) and the Sangunian
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
• financial 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 conflict-prone LGUs, it would be useful to have a session on conflict sen-
sitive and peace promoting planning as this is a critical factor to any development effort
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 conflict sensitivity and peace promotion for ARMM,
may entail an additional two to four hours of orientation.
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 office, preferably
before the convening of the LDC (not later than the first 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 office of
the LCE or in the session hall of the SB, or any other place Box 1.2
convenient and agreed upon by the LCE and the SB. PICT as Functional Committee of 17
the LDC in ARMM

In ARMM, Provincial Inter-Agency

1.2 ORGANIZING AND MOBILIZING THE Coach Teams (PICT) were orga-
PLANNING TEAM nized as functional committees
to provide technical support and
assistance to city and municipal
The Local Development Council (LDC) is the body that is governments in developing their
given the task of preparing the multi-sectoral development CDP and ELA. Created through
Executive Orders issued by the gov-
plans. It is considered the “mother of all planning bodies.”
ernors, the PICTs were composed of
It is therefore critical to ensure that the LDC as well as the technical staff of the different line
functional and sectoral committees as providers of techni- agencies operating within the prov-
cal support and assistance are constituted and activated. ince. Equipped with coaching skills,
the PICT members augmented the
capacity of the Provincial Planning
Sectoral committee members are drawn from various sec- and Development Office (PPDO) in
tors of the community – the academe, religious, business, facilitating planning activities with
component LGUs.
government, non-government organizations, people’s
organizations and other civil society organizations. In Each LGU was assigned a trained
conflict-sensitive and peace-promoting planning, tradi- coach to provide handholding
tional security sectors (AFP, PNP) that are present in the assistance in the formulation of
their plans. PICTs convened regular
locality should be represented. To the extent possible, meetings to provide feedback and
both formal and informal structures that recognize cultural updates on the progress of the CDP
and political diversities within the LGU and utilized by and ELA
communities need to be included to build commitment
 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
18 together with the vice mayor to build trust and
establish close rapport early on in the process. The
following is the suggested minimum composition:
Box 1.3
Multi-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.

a. Mayor as the chairperson and the vice –mayor as co - chairperson

b. LPDC as the operations officer and secretariat head
c. Department heads representing the six development sectors and/or agency heads
d. SB committee chairs of major sectors
e. Representatives of the majority and minority blocs of the SB
f. Representatives of civil society (influential Muslim religious scholars and leaders
(ulama), elders, traditional leaders (datu), Islamic jurists (mufti), influential business
groups such as the Autonomous Basilan Islamic Chamber of Commerce and Indus-
try (ABICCI) in Lamitan City)
g. DILG LGOO as facilitator/coach.

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:

a. Membership in formal and legally recognized LGU structures for planning such as the:
• LDC, which is the main body responsible for local development planning,
including its functional committees
• SB/P, which has the mandate to approve local development plans and budgets,
including the sectoral committees
 • key departments/ units within the LGU involved in program/project imple-
mentation
• Local Government Operations Officer (LGOO) for technical assistance
• LPDO for secretariat support and overall coordination of all related planning
efforts of the LGU.
b. Equitable representation from various stakeholder groups external to the LGU, and
other civil society organizations
c. Gender balance – This will not only promote and ensure the understanding of issues
affecting women, men and other subgroups in the locality but also manifest the
LGU’s adherence to and support for Gender and Development (GAD) mainstreaming
efforts in the bureaucracy
d. Capacity to absorb the plan formulation workload – Plan preparation can be tedious
and pressure laden. Consideration for the existing assignments of the prospective
member should be made to avoid conflict 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 fit given their
respective situations and priorities.

A useful tool in selecting planning team members is the Sphere of Influence 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 19
serve as an input to the Preparedness Check.

What are the qualities and qualifications of the planning team members?

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

a. knowledge of:
• the planning process
• development and governance concepts and principles
b. skills in:
• planning
• problem analysis
• technical writing, and
• communications and networking
c. knowledge, understanding of and sensitivity to critical development themes such as
poverty, environment, gender and peace which LGUs are mandated to incorporate in
their local plans
d. talent and proficiency in consultation processes
e. willingness to work with others
 Table 1.1 Sphere of Influence and Potential Contribution Table

Prospective Planning
Sphere of Influence
Team Members
MPDC Local Development Council
(MPDC is head of the secre-
tariat of the LDC)
Ulama Tawi-Tawi
Key heads of various Various sectoral and multi-
LGU offices sectoral committees set up to
implement national/regional
programs in the locality
Potential Contributions
Access to LGU databases,
plans, and reports
Knowledge of Koran teachings;
assist the LGU efforts in com-
municating and disseminating
information on the CDP and
ELA
Sector-based dataholdings;
tools for analyzing and planning
for their respective sectors

Sphere of Influence - indicates the individuals, groups or sectors, which a prospective planning
team member can influence or catalyze towards a productive or, even, an affirmative 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.

20
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 effort. He/she may however, desig-
nate a focal person, like the LPDC, to act like an operations or executive officer 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?

a. Review the Work Plan and Budget and recommend its approval
b. Designate the members of the planning team and define their functions and assign-
ments/tasks
c. Monitor and oversee the conduct of team activities
d. Clarify directions set by the Chair
e. Resolve issues elevated by team
f. Present, with the LCE, the Draft CDP or ELA to the SB/P and to other stakeholders
g. Ensure adherence to the work plan
h. Motivate the team
 Figure 1.1 Structure of the Planning Team

Chair

Co-Chair

Secretariat

Sectoral Sectoral Sectoral Sectoral

Committee Committee Committee Committee

What is the role and function of the Secretariat?

a. Prepare the materials in connection with the presentation of the Work Plan and Bud-
get to the LCE and the SB/P;
b. Monitor the implementation of the approved work plan and budget;
21
c. Provide the LCE/LDC Chairperson the recommendations necessary for the effective
management of the Planning Team and its activities;
d. Elevate to the Chair/Vice Chair any unresolved problems and issues encountered by
the Planning Team
e. Ensure the proper documentation and management of the Planning Team’s activities,
working papers and outputs

What are the roles and functions of the planning team?

a. Prepare the CDP and ELA Work Plan and Budget

b. Gather and review available plans and other secondary data sources required in the
development of the CDP and ELA
c. Plan, coordinate and facilitate the conduct of various multi-stakeholder consultation/
validation workshops
d. Assist the LCE in public hearings and other consultation sessions with the various
LGU stakeholders and affected sectors like the LGU offices, LDC, Sanggunian and
other sectoral organizations
e. Assist the LCE and the LDC in drafting and finalizing the ELA to include the 3-Year
LDIP, the current year Executive Budget and the AIP
f. Draft, package and finalize the CDP and ELA
g. Prepare presentation materials for various audiences of the CDP and ELA
h. Assist the LCE in his/her presentation of the Plan to various stakeholders
i. Assist in organizing other planning sub-teams that may be required to carry out
other planning activities such as communicating/popularizing the Plan, mobilizing
resources, monitoring and evaluation
 j. Develop the Performance Management System for plan implementation
k. Perform such other functions as may be required by the Local Chief Executive to-
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 benefits:

a. Firmer grasp of local development thrusts and priorities

b. Better understanding of their role in steering the LGU into realizing its vision through
appropriate legislative actions
c. Harmonization of executive and legislative actions towards a unified set of goals and
objectives for the LGU
d. Shared responsibility and accountability for the CDP or ELA

The SB needs to perform the following roles:

a. Issue a Sanggunian resolution supporting the planning process;

b. Review and approve the CDP and the ELA
c. Review, prioritize and approve budget allocation for plan-based PPAs
22 d. Identify and enact legislative measures to support and facilitate the implementation
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 influencial and have very strong potentials for supplementing or augmenting
LGU efforts in plan preparation process. They can:

a. bridge information gaps during plan preparation

b. serve as monitors for CDP or ELA implementation and provide LGU decision–mak-
ers unfiltered information
c. assist the LGU efforts in communicating and disseminating information on the CDP
or ELA
d. rally support for CDP or ELA implementation especially on programs which are heav-
ily dependent on citizen participation and cooperation
e. augment the various resources and expertise required in CDP or ELA preparation and
implementation
f. link the CDP or ELA implementation with various resource organizations.
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 Box 1.4
Benefits of Training Elective
plan preparation. Officials: The Case of Upi,
Maguindanao
Why is there a need for training?
In August 2001, a month after new-
ly elected local chief executives have
a. For an LGU that will be doing a CDP or ELA for the first been sworn into office, a training
time, the training will enable the members to: program on Local Chief Executive
Development Management Program
• have an appreciation and clearer understanding of the
(LDMP) was provided by the LGSP
simplified sectoral and ELA planning process, as well for selected regions of the country
as the requirements for and implications of the plan including the ARMM. The program
preparation exercise was essentially on new develop-
ment paradigms, strategic thinking,
• learn from some of the experiences in the past plan planning, and target setting. It is in
formulation exercises, so that they can adopt the good this training
practices and avoid the pitfalls that others experi-
The training proved very valuable
enced for the newly elected mayor of
• appreciate new development paradigms and frame- Upi, Maguindanao, Mayor Ramon
works that will provide the proper perspective in plan- A. Piang, Sr. Looking back at the
ning. This will include among others the following: experience, he said “…the training
provided me with tools that are
sustainable development, conflict sensitive and peace necessary to manage my municipal-
promoting planning, poverty, gender and develop- 23
ity effectively.” Going through the
ment planning workshop from situation
analysis, goal formulation, strategy
b. For an LGU that had previously undertaken the CDP or ELA, identification to the identification of
the training is an opportunity for both old and new members programs and projects proved to be
to be introduced to the simplified sectoral plan and ELA effective in building the capacities of
elective officials.
preparation process as well as to gain updates on planning
concepts and tools and new/emerging development issues Three years on, the mayor was
and trends. given several awards for effective
management of his municipality,
including the Local Government
There are two possible approaches in training the Planning Leadership Award.
Team, the choice of which will depend on whether the team has
undergone a previous CDP or ELA formulation exercise or not. Taking off from the gains of the
LDMP, LGSPA also conducted Lead-
The session flow for the training incorporating said approaches ership Development and Manage-
are contained in Figure 1.2. ment courses for LCEs and Legisla-
tors in the light of ELA formulation
and implementation.
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 efficiently. The team’s action will be shaped
by two major scenarios:
 • 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

Team has previous

CDP/ELA

Reviewing past plan formulation experiences

24

Understanding the Planning Process

Organizing the Planning Team

Understanding the Planning Process

Work Planning

LCE & SB Hour

CLOSING
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 differ.
Box 1.5
Formulating the CDP and ELA
Work Planning
It is highly beneficial for the LGU
Developing a work plan as a team is crucial to meeting the deadlines that a six-year CDP be prepared
to coincide with the medium-term
for plan formulation. Planning is a tedious and time-consuming
development plan of the na-
process and the group can be easily bogged down by other LGU con- tional government and to ensure
cerns and tasks on hand, thus the necessity for a work plan. The work the continuity of programs and
plan basically helps the group manage their time and resources prop- projects having timeframes longer
than the term of office of local
erly. Early on they have to agree on the different activities that will be elective officials.
undertaken, timetable, responsibilities and resources needed. Once it
is finalized, this should be presented to the LCE and the Vice-LCE for The medium term CDP then
becomes the starting point for the
approval. Support from the LCE and the Vice-LCE is crucial so that development of the term-based
planned activities are given due importance. A Work plan template is ELA.
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.

25
Formulating the Plan
P
lans 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 27

the different 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 five development sectors recommended by the DILG
in the RPS to give due recognition to the role of the sector in ARMM .
 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 office. Most of the priority programs, projects, and legislative measures
in the ELA are already identified in the CDP. However, it does not limit the executive and
the legislative officials from identifying new programs, projects and legislative require-

Table 2.1: The Six Development Sectors of ARMM

Sector Subsectors
Social Development Education
Health
Social welfare
Housing
Culture and Peace Arts
Cultural heritage
Sports and Recreation
Public order
Human security
Economic Development Primary Industries
28 Agriculture (including livestock
Fisheries
Forestry
Secondary Industries
Mining
Quarrying
Manufacturing
Construction
Tertiary
Wholesale and retail trade
Service sector (i.e. banking)
Infrastructure Irrigation
Power
Roads, bridges, ports
Flood control
Water
Sewerage
Telecommunications
Environment Land
Water
Air
Waste management
Institutional Local government management
Governance
Source: Compiled from multiple sources
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 office of elected local officials. On the other hand, the ELA’s time-
frame is necessarily three years to coincide with the term of office of elective officials.

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: 29

• “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 different 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.
 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 identified 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 identified 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 different 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

30 • to ensure the continuity of programs and projects having timeframes longer than the
term of office of local elective officials

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 different stakeholders need to be identified and harnessed.
A simplified 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 different
activities required for plan formulation as defined 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)
• Identification and Prioritization of PPAs (July of every year)
• Identification of areas of complementation of PPAs (July of every year)
• Budget Preparation, Authorization and Review (July to December)
Table 2.2 The CDP and ELA Process
INPUTS
Vision element
Element descriptors
Success indicators
Vision Statement
Ecological profile/SEP
Local Development Indicators
LGPMS-SLGR
CBMS
Vision – Reality Gap
SWOT/Streams Analysis
Sectoral Goals, Objectives and
Targets
CLUP Policies
Sectoral Strategies
Comprehensive Development Plan
Financial Analysis
Time and Resource Constraints
(3-year term)
STEPS OUTPUTS
FORMULATION OF VISION & MIS- Vision & Mission Statements
SION STATEMENTS
DETERMINATION OF VISION – Vision – Reality Gap
REALITY GAP
FORMULATION OF SECTORAL Sectoral Goals and Objectives
GOALS AND OBJECTIVES
FORMULATION OF SECTORAL Sectoral Objectives Strategies
STRATEGIES
IDENTIFICATION OF PROGRAMS, Comprehensive Development Plan
PROJECTS, ACTIVITIES (PPAs),
LEGISLATIVE REQUIREMENTS
PRIORITIZATION OF PROGRAMS, Executive and Legislative Agenda
PROJECTS AND ACTIVITIES (ELA) 31
PRIORITIZATION OF LEGISLATIVE Local Development Investment
REQUIREMENTS Program
RANKING AND MATCHING OF
RANKED PPAs WITH AVAILABLE
FUNDS
 Figure 2.1 Simplified CDP and ELA Process

FORMULATION/REVISITING OF VISION & MISSION

STATEMENTS

DETERMINATION OF VISION –REALITY GAP

FORMULATION OF SECTORAL
GOALS AND OBJECTIVES 6 – YEAR CDP

FORMULATION OF SECTORAL STRATEGIES

32

IDENTIFICATION OF PROGRAMS, PROJECTS,

ACTIVITIES AND LEGISLATIVE REQUIREMENTS

PRIORITIZATION OF PROGRAMS, PROJECTS,

ACTIVITIESS AND LEGISLATIVE REQUIREMENTS 3 – YEAR ELA
IDENTIFIED IN THE CDP

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 efforts 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
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-
Box 2.1
try Masterplan). Calanogas, Lanao del Sur’s
Poverty Reduction Thrust:
Similarly, lower level plans (barangay development plans) can Working Hand-in-Hand with
National Government
also be aggregated at the municipal or city level to form the
CDP. While this is ideal, this is difficult to do since this neces- Taking its cue from the poverty
sitates that all barangay plans are completed before integra- reduction thrust of the Philippine
tion is done at the municipal or city levels. government, the Calanogas, Lanao
del Sur CDP and ELA identified and
prioritized programs and projects
Taking into account higher level plans can be very advanta- that directly address the problem.
geous for the LGU since it can increase the likelihood of the The said plans have been for-
mulated in line with the Medium
projects being funded through other sources. Term Philippine Development Plan
(MTPDP) as well as it’s regional
Integrating lower level plans is further discussed in relevant and provincial counterparts.
sections of the manual.
In Calanogas, Lanao del Sur, 50%
of households live below the
poverty line. Poverty is likewise
2.5 UPDATING THE CDP AND ELA compounded by the lack of access
to basic social services like safe
water supply and sanitary facilities.
At the minimum updating the CDP and ELA should be done Corollary, there is high incidence of
every three years as soon as the new set of LGU officials are malnutrition among children. 33
sworn in and the LDC has been reconstituted. This is an ap- The plan recognizes that poverty
propriate time to re-examine the existing CDP and revisit the reduction can only be achieved
strategic directions (Vision, Mission, Goals, Objectives, Strate- with the concerted efforts of the
local and national government in
gies) and take stock of what has been achieved by the previous
partnership with all sectors of the
administration. community including foreign insti-
tutions. The CDP and ELA enunci-
Evaluation reports (e.g. State of Local Governance Reports) ate that to address the problem of
poverty, development programs
prepared by the previous administration contain useful infor- and projects should be initiated by
mation that are beneficial in revising and updating the CDP the LGU in partnership with other
and ELA. The information allows the planning team to identify development partners.
the extent to which the objectives of the CDP and ELA have
been achieved or whether the plan has effectively 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 significant
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?
 • Have any of the earlier goals and objectives been met? Are there new goals and objec-
tives for the LGU?
• Have the strategies been effective in meeting the desired results? If not, is there a
need to change strategies?
• What programs and projects identified 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 officials.

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
Box 2.2
image of the LGUs future. As such, a vision serves Formulating the Vision
as an inspiration and a guide to action. The vi-
sion keeps the LGU in its course despite changing A vision should be as vivid as
possible, so that it can serve as an
demands of constituents and shifting political and inspiration as well as a challenge
34 economic forces. for all stakeholders.

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 reflects 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 effective partners in the attainment of national goals
(Sec. 2, a. RA 7160).

A good vision statement should possess the following characteristics:

a. Achievable. Though a vision is ambitious, it certainly must be achievable or well

grounded on reality.
b. Inspiring. 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.
c. Easily understood. It uses simple language and presented in a manner that every
member of the organization/community can recall.
 Box 2.3
Examples of LGU Visions

Conflict 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 conflict 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 definitely 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 35

“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, diversified and pre-
served culture, empowered citizenry, steered by committed, transparent, accountable leaders and supported
by a responsible bureaucracy” (Basilan CDP-ELA 2007-2010).

d. Distinctive. 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.
e. Complementarity. Neighbouring LGUs should have complementary not competing
visions, i.e., municipalities along the same zone do not all have to serve as ports.
f. Shared. 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).
 How is a vision developed?

There are no hard and fast rules in determining

Box 2.6
the process for crafting a vision statement. How- Tips in Crafting the Vision
ever, a rational and simplified way that could also
facilitate the subsequent plan formulation steps is In crafting the final form of the
vision statement, the LGU may
suggested below:
consider between a style that is:
• comprehensive - includes all the
a. Elaborating on each of the element by assigning vision elements.
adjectives or descriptors to describe the most • slogan-type - a brief attention
getting phrase that stakehold-
desired end-state scenario for each sector ers can easily recall and identify
b. Identifying the success indicators corresponding with.
to the adjectives identified • combination - contains a short
attention getting phrase and an
c. Formulating the vision statement using the cho- explanation of the vision ele-
sen adjectives or descriptors. ments.
d. Crafting the final form taking into consideration
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 different stakeholders. A step-by-step
guide to a visioning exercise is presented in Annexes 2.1.1 and 2.1.2.

36 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,
efforts should also be exerted to link the municipal visions to that of the province.

Box 2.7
Types of Vision Statements

A Comprehensive Vision Statement

We envision Hadji Mohammad Ajul Municipality to be a dynamic spot in eastern Basilan for agro-fish-
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 sufficient infrastructure and efficient
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).
What is a Mission?

A mission is sometimes referred to as the “purpose.” It de-

Box 2.8
scribes the general thrust of the LGU. It provides a clear view Conflict Sensitive and Peace
of WHAT the LGU is trying to accomplish for its constituents Promoting Mission
or clients and HOW it can be attained. It evolves out of the pro-
A conflict sensitive and peace
cess of bringing the vision into focus. The mission for an LGU promoting mission would outline
can be derived from its mandate which is defined in the general an LGU’s concrete role in forging
welfare clause (Section 16 of the Local Government Code). peace and human security, reduc-
ing structural violence and ensur-
ing that its strategies and programs
Thus a mission statement: do not become sources of conflict
in their respective localities.
a. is anchored on its vision;
Sumisip, Basilan Mission:
b. reflects what the LGU seeks to do or accomplish Achieving the Purpose through
c. communicates and identifies the purpose of the LGU to all it People Participation
stakeholders.
“To work together to develop
agro-fishery resources by providing,
Why is a Mission Statement Important? improving and strengthening vital
infrastructures and support facilities
A mission statement is important because it can set the direc- through active participation of the
people in the process of development
tion for the LGU, providing the focus and guidance needed. It and the promotion of Peace and
can be used for evaluating the performance of the LGU. Unity, implement viable economic
and sound environmental programs, 37
effective basic social services, and en-
Trigger Questions for Formulating a Mission Statement hancing capacity towards an effective
and efficient governance” (Source:
• What is the purpose of the LGU? Sumisip, Basilan).
• What is the LGU trying to accomplish?
The mission statement presents
• Who are the constituents it aims to serve? a clear and concise statement of
• How can it attain its purpose? its purpose as an LGU. It commu-
nicates what it intends to accom-
plish for its citizens and how it is
It is essential to have the vision and mission of the LGU widely going to do it.
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
 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 profile (SEP) and the
ecological profile that are further processed to yield
a situational analysis and a better understanding of
the planning area.
The Socio-Economic Profile and Ecological
Profile
Box 2.11
Examples 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)

The Socio-economic Profile (SEP) serves as the To attain a sustainable economy

most important information base for the CDP. It
provides a snapshot or profile 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,
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

The Ecological Profile, on the other hand, is an
expansion of the SEP, which gives due recognition
and proper space for the bio-physical and ecological
38
features of the area. It covers the five development
sectors, namely: social services, local economy, en-
vironmental or bio-physical base, infrastructure and
institutional capacity of the LGU.
Ecological profiling 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.
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).

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

a. Minimum Basic Needs (MBN)

b. Community-Based Monitoring System (CBMS)
c. Integrated Rural Accessibility Program (IRAP)
d. Local Governance Performance Measurement Systems (LGPMS) and the State of Lo-
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
sufficient to a give clear picture of the current situation of the LGU, the LPDO may have
to gather additional primary data.
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 Box 2.11
be used to track the effectiveness of interventions of the LGU. Examples of ARMM Mission
Statements
The CBMS covers 14 core local indicators that measure the Promote peaceful, united and
different dimensions of poverty (See Annex 2.2.1 for the CBMS cooperative community and
Indicators and their definitions). In particular, CBMS intends provide equitable and integrated
services for the improvement of
to provide information showing the extent of poverty in an area
the people’s quality of life under
and in determining the root causes. participatory Islamic governance
(Source: Lamitan City, Basilan)
The CBMS generates household level data that are useful
To attain a sustainable economy
particularly in poverty diagnosis and planning. CBMS provides through the implementation of
a profile of the poor families and communities in the locality an effective development plan,
such as who they are, what their needs are and where they are. aimed at providing agricultural and
industrial stability, preservation
By having adequate understanding of the locality’s poorest of culture and heritage, balanced
families, the local government can develop and implement eco-system, intensive services to
policies, programs and projects that directly address the needs the people, and advocate culture
of peace (Source: Ungkaya Pukan,
of the poor and undertake more focused targeting in deliver-
Basilan).
ing services. Similarly, CBMS can be a useful guide to higher
level governments, i.e. provincial and national governments, in Eradicate poverty through bal-
developing, locating and implementing pro-poor programs at anced economy, working with its
God-fearing populace mindful 39
the lowest geopolitical unit. of their responsibilities towards
environmental friendly and bal-
If local plans are intended to address the problems of poverty, ance ecology, ensure healthy and
epidemic-free community through
it is incumbent upon the LGU to undertake CBMS on a regular effective mobilization of social
basis (every three years). services, and enhancing its indig-
enous cultural heritage through
The application of CBMS data is presented in relevant sec- multi-sectoral partnership (Source:
Sitangkai, Tawi-Tawi).
tions of the manual.

Who is responsible for ecological profiling 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 Profile and for spearhead-
ing the analysis of data gathered. He/she, however, shall harness the support of all LGU
departments/ offices/ 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
 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 specific period of time.

b. Spatial or geographical dimension

This set of data shows the differences 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
40
This presents the database according to the five identified sectors, namely: social, eco-
nomic, environment, physical/ infrastructure, and institutional. The sectoral presenta-
tion of data offers 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 time
• The LDI matrix is very flexible 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 identified by the 2005 Phil-
ippine Human Development Report (PHDR) that have significant impact on armed
conflict 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.
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 Profile. 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 Profile into useful information or indicators that are relevant to local
planning. The LDI matrix is however by no means exhaustive. In fact, the different
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 conflict issues, the following
inter-related set of indicator systems would be useful to incorporate in the LDIs.

a. Vulnerability to Armed Conflict Indicators

41
Indicators that have been found by the PHDR (2005) to have a significant impact on
armed conflict 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 specific interventions for identifiable 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
 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 identified with very low incomes can thus be identi-
fied 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 five 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 five areas can help the planning
42 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 profile.

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 identified 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 identified key issues and concerns.

The Problem Tree is a visual representation of how problems are linked and inter-related
in a situation. It defines which appear to be cause and effects of an identified 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 identified in the sectoral and inter-sectoral workshops. The problems are or-
ganized into cause-effect relationships with the lower boxes representing the causes
(“roots”) and the boxes above are effects (“foliage”). All problems and issues are present-
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 effect relationships of poverty issues.

Conflict Analysis

To gain a better understanding of the local situation in conflict-prone areas, a conflict

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 conflict issues in the community, including the profile, causes, stakeholders
and dynamics of the conflict. Conflict analysis establishes how various local stakehold-
ers are contributing to violent conflict and structural violence. Additionally, it provides a
snapshot of local initiatives that are addressing these conflicts. Some questions that can
be asked include the following: 43

a. Conflict and Stakeholders Profile

• What are the types of conflict and stages of the conflict being experienced in the area?
(history, how it developed, where is the conflict, who are involved and what are their
sources of power?) What are the causes of the conflict? 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 conflict management and conflict resolution mechanism in place?

• What are other peace-building and conflict prevention initiatives and how is it affect-
ing existing conflicts?

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 defined performance indicators
and the current situation of the sector/s. Gap analysis shows how large is the difference
between the vision or ideal state of the LGU and the existing situation.
 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.

Table 2.3. Current Reality Rating Scale

Rating Interpretation
0 Absolutely nothing has been done about the goal
1
2 Something is already being done to achieve the goal but the level of attainment is still on
3 the low side
4
5 The goal is half accomplished
6
44 7 Goal is more than half-fulfilled but still short of full attainment
8
9
10 The goal is completely attained
N No data available

From the vision desciptors and success indicators identified 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).

Table 2.4. Example of Vision-Reality Gap Analysis

Descriptor Success Indicator Rating Explanation

Mortality rate of children Under-five mortality rate reduced by two-thirds from

Healthy 8
under 5 baseline
citizens
Maternal mortality rate 5 Maternal mortality rate reduced by half from baseline

Incidence of malaria 0 Nothing has been done about the goal

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

Table 2.5 LGPMS Performance Levels and Implications to Planning

Development Indicator and Development Planning

Performance Levels
Indicator Performance Range Implications

Example:
Malnutrition rate of children 0-71 months old
0- 1 % of the total population Very High (5) 45
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)

Each performance level has different implications to local planning. A four and a five
indicates ‘high level development’ for a particular indicator. This means that LGU efforts
need to be sustained to maintain the high level of performance. On the other hand, a one
or a two signify that LGU efforts 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.
 Table 2.6: Using the LGPMS Single Year Report

Development Indicator Value Performance Level Performance Description

Percentage of malnourished children

2.83% 4 High
aged 0-5 years old
Percentage of households with sanitary Medium
67.40% 3
toilets (Benchmark)
Percentage of households with elec-
27.73% 1 Very Low
tricity

The planning team can conclude from the data that interventions for malnourished chil-
dren have been effective; 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

46
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 five performance areas and iden-
tify where performance gaps are highest which when addressed would improve the LGUs
performance significantly. 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.

Table 2.7: Interpreting the LGPMS Matrix

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

% Malnourished children 2
Infant mortality rate 5
Mortality of children 4 3.6
Mortality rate 3
Morbidity rate 4

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.
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.

Table 2.8 Using LGPMS Comparative Performance

My
Service Area/Development My Class Average (3rd Class
MY LGU Province Average
Indicator LGUs in Region – 6 LGUs)
(27 LGUs)

Percentage of households with Rating=4 Rating=1.44 Rating=1.83 (50.43%)

sustainable potable water (88.74 %) (37.72%)
supply

Percentage of households with Rating=3 Rating=1.67 Rating=1.60 (41.57%)

sanitary toilets (67.40 %) (33.74%)

Percentage of households with Rating=1 Rating=1.19 Rating=1.67 (40.11%)

electricity (27.73 %) (27.55%) 47

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.

Table 2.9 Using LGPMS Performance Trends

Year1 Year 2 Year 3

Indicator
(2004) (2005) (2006)

Percentage of households with sus- Performance Level=2 Performance Level= Performance Level=4
tainable potable water supply (64.00%) 3 (72.40%) (88.74%)
 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.

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

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
48 Basic education and Elementary school participation rate 79.6
literacy
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
Source: CBMS Survey, Municipality of Labo (2003)

An integral part of the CBMS is the use of GIS (Geographic Information System) maps
that are easily understood and appreciated by the local officials 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).

3
While a core set of indicators that captures the different dimensions of poverty are being recommended, the system is flexible and allows for
the inclusion of additional indicators that the LGU finds relevant to the locality.
Figure 2.2: GIS Map showing access of households to sanitary toilets

Source: CBMS Survey, Municipality of Labo, Camarines Norte 49

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 offices 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.

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

GEOGRAPHICAL AREAS
DATA/
Barangays REMARKS
INFORMATION INDICATOR Municipality Province
Guitol Kabulu-an Rizal
Social Indicators
a. Percent of HH without access to sanitary 40.90 78.63 35.9 13.26
toilets, latest
b. Proportion of children aged 6-12 years old 30.28 80.34 11.79 25.17
who are not attending elementary school
c. Proportion of households with income 3.30 0.00 0.77 .67
below the poverty threshold
Source: Sta Elena, Camarines Norte CBMS 2003
 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 refine the process by making available their data
holdings and thus allow a more fine-grained determination of the vision-reality gap for
the sectors. The presence of a good LGU Ecological Profile 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 differ in terms of timeframe and impact.
50
Goals are longer-term results that bring the LGU closer to the vision. An objective is a
more specific 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

GOAL
Increased Farm Income

OBJECTIVE 1
Improved farmers’ ac-
cess to market
+ OBJECTIVE 2
Enhanced access
to credit
+ OBJECTIVE 3
Increased farm
yield
Goals and objectives of local governments may be differentiated in three dimensions as
shown in Table 2.12:

Table 2.12: Differences between goals and objectives

Result Level Timeframe Accountability of results

Higher level Long-term Partial accountability of
Goal
the LGU
Lower level Short to medium term Full accountability of the
Objective
LGU

How are goals and objectives set?

Based on the results of the VRGA, specific 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: 51

a. Eradicate extreme poverty and hunger

b. Achieve universal primary education
c. Promote gender equality
d. Reduce child mortality
e. Improve maternal health
f. Reduce maternal mortality rate
g. Combat against HIV/AIDs, malaria and other diseases
h. Ensure environmental sustainability

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.

Conflict-affected LGUs need to consciously develop goals to address issues on armed

conflict and structural violence. The conflict 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 five areas, the LGPMS assists LGUs in focusing their plans along
development areas where they are lagging and need to make significant improvements if
they are to exhibit a good performance.
 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-
Box 2.12
opment of goals and objectives? SMART Criteria for Developing
Goals and Objectives
Objectives Analysis
S Specific Specific in
targeting an
Objectives analysis is a tool in which the hierarchy objective
of problems (see Annex 2.3) is transformed into a
M Measurable Progress is
hierarchy of objectives (objectives tree). It utilizes measurable
a diagram called objectives tree (see Annex 2.5). It through indicators
identifies means-ends relationships between and
among the objectives. The objectives tree describes A Assignable Can be assigned
to particular
the scenario after solving the problems. responsibility
center and people
Annex 2.5 illustrates the step-by-step guide to devel-
R Realistic Can be
oping goals and objectives using objectives analysis. realistically done

Developing Success Indicators T Time-related Has timeframe as

to when it can be
achieved
What are success indicators?

52 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 define how performance will
be measured qualitatively or quantitatively. Table 2.13 shows examples of success indica-
tors for outcome of social service interventions.

Table 2.13 LGPMS Outcome Indicators for Social Services

Service area LGPMS Outcome (Development) Indicators

Health & Nutrition Percentage of children aged 0-71 months with below normal weights
Infant mortality rate
Mortality rate of children aged 1-5
Morbidity rate
Maternal mortality rate
Mortality 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 houses
Percentage of households with sustainable potable water supply
Percentage of households with sanitary toilets
Percentage of households with electricity
Peace, Security & Disaster Incidence of Index Crimes
Preparedness Incidence of Non-Index Crimes
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 finds 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 different 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- 53
ated through the CBMS.

Table 2.14 Core Local Poverty Indicators (CLPIs)

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 Proportion of 6-12 year-old children who are not in elementary
education 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 five years old who died
Goal 5: Improve maternal health Proportion of women who died due to pregnancy related causes
 Goal 6: Combat HIV/AIDS, malaria, Proportion of households without access to safe water
and other infectious diseases
Proportion of households without sanitary toilets

Goal 7: Ensure environmental sustain- Proportion of households who are squatters

ability
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 classified into 17 service areas for five 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 figure 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.

54 Table 2.15: Results and 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)

Why are success indicators important?

Success indicators are important because they:

a. Define the criteria for success of a plan;

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

What are the qualities of good success indicators?

Good success indicators must be:

a. Relevant – they focus on what is important in the objective or goal;

b. Reliable – they are capable of yielding the same results even if gathered by two differ-
ent observers;
c. Practical – they make use of available data which are not costly to generate
d. Independent – they cannot be used for two levels of objectives, i.e., an indicator for a
goal cannot be used as an indicator for an objective.

Setting Targets

What is a target?

A target is a specific 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.

Table 2.16: Results and Targets

Goal/Outcome Performance Indicator Target

Reduce child mortality (MDG Goal 4) Mortality Rate of children aged 1-5
(LGPMS outcome indicator)
Output
Child Immunization Percentage of children immunized
(LGPMS output indicator)
Reduce children under five
mortality rate by two-thirds
55
by 2015 no (MDG target 4)
Immunize 10% of children
aged 0-5 by 2007

Why are targets important?

Targets are important because they:

a. identify how much of a change is expected during the planning period;

b. help raise the expectations of all those involved in program and project implementa-
tion;
c. provide useful benchmarks against which implementors can measure their perfor-
mance
d. permit implementors to evaluate both the adequacy of actions being taken and the
progress made in implementing action plans.
 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:

a. based on trends
b. expressed in terms of increases and decreases in values such as growth rates, percent-
ages or absolute values in gross or real terms
c. prioritized according to their degree of attainability and order of significance

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 identified poorest households and/or ba-
rangays as a more effective 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
56 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.
Table 2.17 Setting Targets Based on LGPMS Comparative Performance

My Class Average
Development Indicator and My Province
My LGU (10 2nd Class LGUs in the
Indicator Performance Range average
Region)
Percentage of malnourish children 0-71
8% 12% 3%
months old

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
figure 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.

Table 2.18 Setting Targets Based on LGPMS Performance Trends 57

Year1 Year 2 Year 3

Indicator
(2004) (2005) (2006)

Percentage of households with Performance Level= Performance Level= 3 Performance Level= 4

potable water supply 2 (72.40%) (88.74%)
(64.00%)

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
 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 profile, 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 identified is “presence of unique ecotourism assets,” then
a strategy that can be formulated to take advantage of the opportunity offered by “In-
58 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

Objective
Improved policy-regulatory environ-
ment for private sector participation
in eco-tourism

Strength
Unique ecotourism assets

+ STRATEGY
Develop ecotourism as a priority
industry in the LGU

Opportunity
Increased interest in
ecotourism worldwide
The guide questions below (Table 2.19 may be useful in identifying strategic interven-
tions in the plan.

Table 2.19 Guide to Identifying Strategies

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?

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 59

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
Box 2.13
achieve the goals and objectives of the LGU. Importance of Project
Identification Phase
A project may be defined as any undertaking that involves the
The project identification phase
use of scarce resources undertaken during a defined time with is very important, because it is
a given purpose. The term project refers to a great variety of en- during this time that the relevance
deavors. A project may be as simple as a single activity or may of project ideas are systematically
established. This step of the plan
be composed of a set of activities. Projects range from actions formulation process facilitates
with a single-purpose, such as small infrastructure projects the local development investment
(e.g. construction of an irrigation facility, delivery of a training programming process. The list of
programs and projects can provide
course, etc.) to complex, multi-component systems such as a
a ready basis and a good headstart
capacity building program for the local government. for the LDC in drawing up the LDIP
and the AIP.
A program is a package of interrelated projects that conforms
to the direction set by the stated strategy.
 How are programs and projects identified?

Project ideas originate from a multiplicity of sourc-

Box 2.14
es, among which are the following: Adapting Good Practice: the
Southwestern Liguasan Alliance
a. Development plans at higher levels (regional, of Municipalities (SLAM),
Maguindanao
and national)
b. International commitments that the Philippine It was during a Sharing Session in
government has been signatory to, such as the an LGSPA Leadership Course that
Millenium Development Goals 4 Mayor Abdulkarim Langkuno of
Paglat, Maguindanao realized how
c. Sectors within the LGU that experience the par- local governments can cooper-
ticular problem situation ate and pool resources to solve
d. Campaign platform and thrust of the LCE common problems within their
jurisdictions. Taking cue from the
e. Local development indicators, including the PALMA Alliance in Cotabato, he
LGPMS, LPIS/CBMS, Conflict Analysis, etc. rallied his neighboring munici-
f. Good practice and award winning projects. palities to form the Southwestern
Liguasan Alliance5 of Municipali-
ties6 (SLAM). This undertaking has
Project identification can take off from the analysis been included as one of the priority
of the problem situation discussed in section 2.7. projects in the LGUs ELA.
Analyzing the problem situation further will lead
Through united work, the alliance
to the identification of underlying causes which in envisiones to improve governance
turn will guide the identification of possible pro- and service delivery in their juris-
60 grams and projects. This analysis allows for a more dictions. More importantly, the
Alliance seeks to promote active
in depth and systematic way of identifying solu- campaigns to support a culture
tions to problem situations. of peace in the area. Collectively,
they see their efforts as being more
viable in terms of delivering basic
For pro-poor programs, the results of the CBMS
services and in promoting a more
can be a good source of project ideas given that vibrant economy.
the process benefits 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 identified poverty groups. The CBMS process also allows identification
of specific poverty issues in specific areas for specific beneficiaries, thus, providing clear
basis for more needs-based interventions.

In identifying programs and projects that promote conflict 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 defining 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.
Table 2.20 Identifying Programs and Projects Using LGPMS

Options for improving

Performance Analysis
Performance performance
Performance Development
attribution
Results Variance Impact if
(factors
Indicator (Result & (compared performance
facilitating/ Policy
Performance against Performance is not Program/
hindering) Develop-
Level) province, LGU Trend improved project
ment
class or LGU
target)
Malnutri- 8% Higher than Increasing by Increasing Enrollment Short term: Provision
tion rate provincial 2% in the last unemployment dropped-out School of funding
of children average 3 years may increase feeding for school
aged 0-7 performance Lower program feeding
years old agricultural Poor health program
Lower than productivity and nutrition Tapping
LGU class of children NGOs for
performance Poor access to feeding
health facilities program

Long Term:
Employment
generation
and local
economic
development
program 61

Who is/are responsible for identifying programs and projects?

As a vital step in the planning cycle, project identification 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. Specifically, the various
sectoral committees in the LDC can start the process of identifying programs and proj-
ects. Involving stakeholders in program/project identification enhances the appropriate-
ness of interventions, fosters ownership and sustained support for their implementation.

Stakeholder inputs to program/project identification 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 identified in the CDP. These may include

5 PALMA is an acronym for five 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.
 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 identified?

The process of identifying legislative requirements logically takes off after relevant pro-
grams and projects have been identified. However, while this can be the starting point
for the identification of appropriations ordinances for PPAs, the planning team should
continue on and identify other legislative measures that will sufficiently 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 sufficient to attain the objective by 2013. Additional
legislation need to be identified to support the identified program so that desired objec-
tives are achieved. As a rule, identified legislative requirements together with identified
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-
62 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 office.

Table 2.21 CDP Legislative Requirements

Programs & Legislative Time Committee

Sector Goal Objective
Projects Requirements frame Responsible

Economic Improved lo- Increased invest- Investment Pro- Amendment of 2007 Finance, Appro-
cal economy ments in the motion Program Investment Code priations, Ways
municipality by & Means
10% by 2010
Institutional Improved fis- Fiscal gap re- Revenue Updating of the 2008 Finance
cal capacity of duced by 5% by Enhancement Revenue Code
the LGU 2010 Program
Environment Improved ma- Expand man- Mangrove An ordinance 2008 Environment
rine environ- grove forest by Rehabilita-tion declaring man-
ment 25% by 2013 Program grove forests as
protected areas

An Ordinance Ap-
propriating funds
for mangrove
rehabilitation
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
officials as well as other stakeholders to participate in identifying legislative measures in
support of the CDP.

63
Gearing Up For
Plan 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 65

LGU. It is the joint program of elected officials of the LGU. It contains
the major development thrusts and priorities of both the executive and
legislative branches for their three year term of office 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 identified in the medium term CDP to address pressing con-
cerns and new developments in the locality.

The ELA is a tool for:

a. Planning and budgeting, as it

• 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
• identifies 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
 • organizes and allocates local resources in a rational and results-oriented
manner
b. Transparency and accountability, since it
• 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
officials make themselves accountable
• facilitates consultation processes between the LCE and the various stakeholders.
c. Social mobilization, because it
• promotes active and quality participation of the community in local develop-
ment planning
• helps rally support from stakeholders
• helps mobilize resources to implement priority programs and projects
• helps unite the broader LGU community
d. Performance management, because it
• provides a basis for ensuring that LGU plans for the three-year term of the LCE
and other elective officials are implemented and are producing the desired
impact
• helps set performance targets to the various departments of the LGU, thus
encouraging greater accountability for results, at least for the three-year term
of office of elective officials
e. Communication, since it
• allows elected officials to present and articulate their political agenda within
66 their three-year term and seeks their integration in the medium- and long-term
development plans
• creates opportunities for the community to give feedback and voice out their
issues and concerns to the LGU, and the LCE in particular
• encourages closer interface between the executive and legislative officials and
• allows for elected officials to report back their accomplishments and achieve-
ments after their three-year term
f. Convergence, because it
• Encourages collaboration between the executive and legislative departments,
at least within their three-year term in office
• Provides avenues for consensus among diverse stakeholders in pursuing a
set of unified 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:

a. lead the executive and legislative branches to a unified vision, mission, goals and
objectives
b. enable the executive and legislative branches to agree on the priority problems and
issues that need to be addressed within their three-year term
c. help the LGU focus on a set of interventions towards the attainment of a common set
of objectives and goals
d. increase the chances of implementation of priority programs of the executive depart-
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
e. speed up the implementation of priority projects within the three-year term of the
LCE and local sanggunian

Box 3.1
Converging 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 offices, 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 67
mobilizing the much needed resources for her priority programs and projects. For her, the 20% IRA
proved insufficient 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.
 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:

Table 3.1: Steps in Developing the ELA

STEPS Process ELA Elements

Revisit the Vision-Mission as articulated in the

Step 1 Vision-Mission
CDP

Review and prioritize goals, objectives and strate-

Step 2 Priority Goals, Objectives, and Strategies
gies as identified in the CDP

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

68 Review and prioritize CDP legislative require-

Step 4 ments based on the priorities agreed upon with ELA Legislative Requirements
the executive

Step 5 Identify capacity development needs ELA Capacity Development Needs

Step 6 Formulate the LDIP LDIP

What makes a good ELA?

A good ELA possesses the following qualities:

a. Objective – It is grounded on a solid and objective research and sound analysis of the
local situation. It cannot be based merely on the limited perceptions and biases of a
handful of decision–makers.
b. Needs–based – It is anchored on real needs of the community by making use of par-
ticipatory approaches and tools, such as the results of Minimum Basic Needs (MBN)
survey and CBMS
c. Focused – It channels LGU efforts and resources towards critical interventions which
are anticipated to contribute significantly to the realization of long-term development
goals while bringing immediate benefits to its constituency.
d. Widely-shared and Participatory – It is widely shared, crossing party lines and sectors.
It reflects the values, views and development priorities shared by its constituents.

BOX 3.4
SAMPLE FORMAT OF THE EXECUTIVE AND LEGISLATIVE AGENDA

Message from the Local Chief Executive

Message from the Vice-LCE
LDC Resolution Endorsing the ELA
Sanggunian Resolution Adopting the ELA
Location Map
LGU Vision and Mission Statement

1. Brief Profile of the LGU

a. Historical Background
b. Physical and Demographic Characteristics

2. Sector Situation
a. Social Development Sector
b. Economic Development Sector
c. Environment and Natural Resources
d. Infrastructure Sector
e. Governance and Administration
f. Culture and Peace
69
3. SLGR

4. Sectoral Goals, Objectives, Strategies and Development Interventions

a. Sectoral Goals, Objectives and Strategies
b. Priority Programs and Projects by Sector
c. Priority Legislative Requirements

4. The Local Development Investment Program

a. List of ranked prioritized projects, with cost estimates
b. Projected Fiscal Requirements vis-à-vis Projected Revenues
c. Resource Mobilization Strategies

5. Priority Capacity Development Needs and Requirements

6. Communications Plan

7. Monitoring and Evaluation

 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 office. Necessarily, the LA should have a time-
frame of three years consistent with their term of office.

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 identified 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
figure 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

70
CDP legislative
requirements

ELA Priority
legislative
requirements

Legislative
Agenda

How are priority legislative requirements for the ELA identified?

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

actions
• Generating needed support for implementation of ELA activities
• Providing focus to the legislative work of the Sanggunian
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.
Specific to municipal and city CDPs, integration of Barangay Development Plans (BDP)
is done at different levels namely:

• Elevating highly critical issues identified in the BDPs (e.g. high incidence of water-
borne diseases) to MDPs/CDPs
• Including priority programs and projects of barangays that reflect 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 Box 3.5 71
The LDIP
the AIP are the principal instruments for implementing the
CDP and ELA and link the plan to the budget. The LDIP The LDIP is not simply a list of priority
should have a three years timeframe to coincide with the programs and projects that the LGU
wants to carry out. It also contains a
term of office of local officials, subject to annual review. program for planned financing or for
using the investible portion of the local
The LDIP consists of programs and projects that are local or budget to finance the implementation
of those programs and projects and/
within the mandate of LGUs. It considers only programs and or raising additional funds utilizing the
projects that are to be financed by LGU funds, including na- LGU’s fiscal management powers and
tional programs that are prioritized for LGU implementation authority.
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 identified sectoral projects, ranking the priority programs and projects vis-à-vis a set
of criteria, matching the ranked programs and projects with available financial resources,
and formulating a financing 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 finance 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.
 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 reflected 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 finance
development programs and projects.

Figure 3.2 Local Funds for Development

72

The Simplified LDIP Process

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

a. Producing a ranked list of programs and projects with individual cost estimates
b. Determining available future funds for investment
c. Matching the fund requirements with projected funds available and deciding on
financing options should the funds available be insufficient

Figure 3.3 illustrates the steps involved in preparing the LDIP.

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

73

Chart prepared by Ernesto M. Serote

Stream 1: Producing a Ranked List of Programs and Projects

1. The first 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.
 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 reflect the values of people and the specific
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 different stakeholders (see Annex
3.0). Proper reference to and alignment with the following should be made in the process
of setting the criteria:

a. LGU mandates as specified in Section 16 of the 1991 Local Government Code

74 b. National government functions devolved to LGUs under the Local Government Code
of 1991 (Sec. 17)
c. Crafted vision/mission, goals and objectives
d. Targets
e. Issues and problems that require priority focus

The prioritization activity should be results-oriented and viewed not simply as a means
to finance 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”
 Projects are development interventions that have definite time frames, require
definite resource inputs like additional staff, equipment and space separate from the
existing office and with specific outputs. Below are the more specific distinguishing
features of “projects” and “non-projects”.

Routine transactions, activities and services that are part of the regular functions of
the LGU office 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 Office and the mayors office, collec-
tion of real property taxes by the Treasurer’s Office, the issuance of quarry permit by
the Engineering and Environment Office, or the enforcement of an ordinance by the
mayors office).

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

Table 3.2 Guide to Distinguish Projects from Non- Projects

PROJECT NON-PROJECT

specific life cycle, with definite start and completion
points with calendar dates
can be abruptly terminated if goals are not met;
always terminated once project is completed
total effort must be completed within fixed budget
and schedule
prediction of ultimate time & cost required is difficult
rate and type of expenditures constantly changing
continuous; no specific event tied to calendar dates
other than fiscal year budget
assurance of continued function even in a major
re-organization
maximum work is performed within the annual 75
budget ceiling
prediction of annual expenditures is relatively simple
constant rate and type of expenditure

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 filtered out.
 Table 3.3 Sifting Projects from Non-Projects

Sectoral Goal: To raise average income of farming households

No. Strategies Ref. No. Programs Projects/Services/Legislation Proj Serv Legis
1.0 Increase farm 1.1 Intensify production Develop gravity irrigation
yield support services
Install communal pump irrigation
Promote use of certified seeds
1.2 Improve post Construction of mechanical dryers
harvest facility
Regulate use of streets as solar dryers
Put up storage facilities
Encourage investments in processing
plants
2.0 Better process 2.1 Competitive pricing Encourage competition
of farm pro- by traders
Regulate prices
duce
Improve market infrastructure
2.2 Up-to-date market Install internet-based access to
information commodities market
Promote organization of cops
3.0 Agricultural 3.1 Farming system Land suitability analysis
product diver- research
Pilot test livestock and crop raising
sification
76 Encourage utilization of idle lands
through idle land tax
Improve tenure in agro-forestry areas
3.2 Product research & Utilize results of DOST studies
development
Hold agricultural and industrial fairs
and exhibits

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
efforts of the LGU in integrating PPAs to higher level plans, identified 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-
zations
• determine projects that fall under the responsibility of the LGU
• For programs and projects identified as “locally-owned, these can be further catego-
rized based on defined administrative responsibility (provincial, city, municipal or
barangay) as provided in Sec. 17 provisions of the 1991 LGC.”
Table 3.4. Sifting Projects for Ownership

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 X
System
Land Suitability Analysis X X
Silvi-Pasture Pilot Project X X X
Agro Industrial Fair X

a.3 Once programs and projects are identified as “locally-owned” by the municipality, city
or province, further screening is done to surface conflict, compatibility or complemen-
tarity. This should lead to the exclusion or redesign of conflicting projects. The rela-
tionship between projects is one of conflict when the expected benefits 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 77
contribute to conflict 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.
 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- Box 3.6
Preparing Project Briefs
lar tools. Relevant information can be captured in
a one page project brief. Box 3.6 provides a sample Prioritized programs and projects
outline of a project brief. need to be translated into project
briefs that give more detailed
information on the project. It is
Stream 2: Determining Investible Funds recommended that the brief should
be not more than one page and
should contain information listed
This stream runs parallel with the prioritization
below (Serote 2006).
of programs and projects. The focus is on deter-
mining the fiscal capacity of the LGU or the level of Project briefs are to be prepared by
resources available to finance its priority programs the concerned sectoral and func-
tional committees with support
and projects (also referred to as the LGU’s investible from the secretariat of the LDC.
funds).
The recommended contents of a
project brief include the following:
Who are involved in determining the LGU investible a. the name and type of project
funds? (generally, “soft” or “hard”)
b. activity components
The Local Finance Committee (LFC), composed of c. the proponent or originator of
the project idea
the Local Planning and Development Coordinator, d. the justification for the project
78 the Budget Officer and the Treasurer, is charged (derived from the CLUP or CDP)
under the LGC with the “setting of the level of e. the intended beneficiaries
(population sectors or geo-
annual expenditures and the ceilings of spending graphical areas)
for economic, social and general services based on f. estimated cost or resource
the approved local development plans.” As such, inputs (broken down by activity
component)
they should undertake the required financial plan
g. target outputs or success indica-
development in close coordination with the Local tors
Development Council (LDC) for consideration and
Source: Adapted from Serote 2006
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 financing
The process of determining the investible funds involves the following general steps:

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

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

Collect appropriate revenue data and determine the historical trends. Revenue is defined
as any inflow 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
five 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.
79
Table 3.5 Time Series Record of Property Tax Revenue
(5)Total Revenue
(1) (2) (3) (4)
Year from Property
Assessed Valuation Tax Rate Tax Levy Collection Taxation
As % of
(a) (b) (a) (b) (c) (a) (b) Levy (a) (b)
Amount % change General SEF Total Amount % Change Amount % 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 3.6 Time Series Record of Revenue Other than Property Tax
(1) (3)
(4)
Business (2) Service & (b) (6) (7)
Year Total Local
Fees and Other Taxes Operations IRA All Others Grand Total
Revenue
Licenses Income
(b) (b) (b) (b) (b) (b)
(a) (a) (a) (b) (a) (a) (a) (a)
% % % % % %
Amt Amt Amt % ch Amt Amt Amt Amt
ch ch ch ch ch ch

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 financial resources that depend on revenue sources
80 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.
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.

Table 3.7 Time Series Record of LGU Operating Expenditures

(1) (3)
(2) (4) (7)
Year General Public Economic
Social Services All others Grand Total
Services Services
(a) (b) (a) (b) (a) (b) (a) (b) (a) (b)
Amt % ch Amt % ch Amt % ch Amt % ch Amt % ch

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 reflect 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. 81

Table 3.8 Obligated Debt Service Expenditure

(1) (2) (3=2+1)

Year
Principal Interest 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.
 Step 4. Determination of new capital financing 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 affect 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 beneficiary of LGU investments, should be projected separately.

For expenditures, future normal recurring expenditures can be projected using (a) his-
torical three to five 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 effects 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.

Table 3.9 Projection of Property Tax Revenue

(1) (2) (3) (4) (5)

Projected Tentatively Projected Tax Rate Projected Collection Projected Total
82 Year Assessed
Total Tax as Percent Revenue From
Valuation
(a) (b) (c) Levy of Levy Property Taxation
General SEF Total

Instructions: For each year:

1. Enter the projected Assessed Valuation in Column 1 and the estimated Collection as % of Levy in Column 4
2. 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 3
4. 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 financing package.
Table 3.10 Projection of Total Revenue

(2) (7)
(1) (4) (6)
Business (3) (5) Projected
Year Projected Service and All
Fees and Other Taxes IRA Total
RPT Operations Others
Licenses Revenues

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.

Table 3.11 Projection of LGU Operating Expenditure

(1) (3)
(2) (4) (5)
General Public Economic
Year Social Services All Others Grand Total
Services Services

83

Instructions: For each year

Use 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
financial projections.

a. No change. This assumes that the present level of revenue or expense item will con-
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.
b. Change by constant amounts. This technique assumes yearly changes based on con-
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.
 c. Change at a constant rate. This technique assumes annual changes at a constant rate
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.
d. Correlation with demographic or economic variables. This method assumes a con-
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 reflect 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 firmed up
(stream 2), matching and iteration exercises can now proceed.

Table 3.12 Projection of New Investment Financing Potential

Item Year
Item
No. 1 2 3 4 5
84
1 Projected Revenue
2 Less: Projected Operating Expenditures
3 Sub-Total (1-2)
4 Less: Obligated Debt Service
5 New Investment Potential (3-4)
Instructions:
1. Item No. 1 is to be taken from Table 3.10
2. Item No. 2 is to be taken from Table 3.11
3. 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 financed 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 financing options.
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 financing approach to take. Three
financing 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 final 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 final 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 85
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 fiscal arrangements, i.e. intensi-
fied revenue collections and judicious expenditure management.
c. Augment available funds by public borrowing and other financing 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.

Table 3.13 Local Development Investment Program (LDIP) Project Summary

Schedule of Implementing
Cost Source of
Project Outputs Location Implementation Office/
Estimate Funds
((From-to) Department

Instructions:
List all projects approved for the LDIP. Projects should be listed in the order of their implementation.
 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 final 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 financing
options are likely to have implications on them in terms of additional taxes or fees and
the quality of future service delivery.

What financing options are available to the LGU?

LGU financing 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 finance the implementation of
development projects. Credit financing as a financing option should be resorted to with
caution and careful analysis particularly in terms of its financial soundness and long term
impact on the LGU’s financing 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 different options
86 that may be employed by the LGUs to augment its locally generated resources.

Figure 3.4 LGU Financing Options

ARMM LGU FINANCING OPTIONS

Internal Official Borrowing/

Local Private
Revenue Development Credit
Revenues Financing
Allotment (IRA) Assistance (ODA) Financing

User Multilateral
Bond Flotation Public
Charges/Fees Loans

Taxes Bilateral Loans BOT Private

Service Fees Grants

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 specifies 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 efficiently 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. 87
The special levy is an assessment on lands that are specially benefited 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)

Official Development Assistance

Official development assistance (ODA) is defined as those flows to developing countries

which are provided by official 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.
 The ODA is administered with the promotion of the economic development and welfare
of developing countries as its main objective. ODA flows 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 financial 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 office of
the National Government or from any higher LGU.

Box 3.7
Managing 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 fiscal gap,
defined as the difference between perceived needs and available financial resources. The table below
shows a breakdown of sources of income for the years 2007 and 2008 for Barangay Sarmiento.
88

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

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

ODA funds coordinated and managed at the regional level either by PMOs or Regional
agencies like RPDO, DA, ODA offices, 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 financing comes in varied forms such as:

• build-operate and transfer agreement

• bond flotation
• 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-qualified project proponent for the financing,
construction, operation and maintenance of any financially viable infrastructure or de- 89
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 finance 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 finance infrastructure and other socio-economic de-
velopment projects in accordance with the approved local development plan and public
investment program.
 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 financial 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.

Box 3.8
Example of a Financing Scheme for LGU Projects:
90 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 financ-
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.

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

COMPREHENSIVE DEVELOPMENT PLAN (CDP)

Vision, Sectoral Goals, Objectives, Development Strategies and Policies
Medium Term ( 3-6 Years)

91

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)

ANNUAL / SUPPLEMENTAL BUDGET

One (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.
 Figure 3.6 Local Planning and Budgeting Linkage8

COMPREHENSIVE DEVELOPMENT
PLAN (CDP)
Medium – Term (6 Years)
PLANNING
• Development Issues
• Current Reality
• Vision
• Goals and Objectives
EXECUTIVE AND LEGISLATIVE
AGENDA (ELA) (3 Years)

LOCAL DEVELOPMENT
INVESTMENT PROGRAM
Programs / Projects / Activities (3 – 6 years)

LINK
Investment Programming

ANNUAL INVESTMENT PROGRAM

Priority Programs/ Projects/ Activities
Performance Indicators / Targets (1 Year)

92
BUDGETING
• Priority Programs/Projects/
ANNUAL / SUPPLEMENTAL Activities
BUDGET • Allocation of Resources
(1 Year) • Major Final Output /Performance
Indicators / Targets

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:

a. Priority Program / Project/ Activity Description within each sector

b. Implementing Office/Department
c. Schedule of Implementation
d. Expected Outputs
e. Funding Source
f. Amount broken down into PS, MOOE, CO and total amount

8
Modified based on Exhibit 7, Plan- Budget Link Model, UBOM, p.14
The new format of the AIP is shown in Table 3.15.

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

a. Economic Services, which cover all activities directed to the promotion, enhancement
and attainment of the desired economic growth (Endriga, Pulumbarit-Elum, Yap &
Alcalde, p. 61)
b. Social Services, which embrace expenditures for education, health, social security, la-
bor and employment, housing and community development and other social services
(Endriga, Pulumbarit-Elum, Yap & Alcalde, p. 202)
c. General Services, which include executive and legislative services; overall fiscal and fi-
nancial services; planning and conduct of foreign affairs; 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 definitions are offered:

a. Program – an aggregation of government projects/activities that share a common

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. 93
(UBOM, p.42)
Example: Agriculture and Environment Program

b. Project – a special undertaking within a program composed of activities, which are

carried out within a definite time frame and result in the accomplishment of an identi-
fied output. (Ibid).
Example: Establishment of a Municipal Nursery

c. Activity – a work process which contributes to the accomplishment of a program or

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 first 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).
 Figure 3.7 Timetable and Activity Flow of the AIP Preparation Process

PERIOD COVERED ACTIVITY FLOW IMPORTANCE

Jan. 1 – 15 LCE issues Executive Order to LDC, LFC, Sanggunian Mem- • Marks the beginning of AIP preparation
(15 days) bers, concerned CSOs & Private Sector, directing the updating • Sets general procedures and timetable for AIP
of the LDIP & the AIP for the current year preparation
• Synchronizes AIP activities with budget prepa-
ration schedule
• Guides identification of PPAs to make them
consistent with the LDP & LDIP.
Jan. 16 – 30 Review of all objectives and Policies of the LFC, LDC, Execom, • PPA status are reviewed
(15 days) Chairpersons of the Sanggunian Committees on Planning & • Review criteria developed
Appropriation, Citizen Advocacy Groups • Needs/issues & concerns are updated
Feb. 1 – 15 • Objective setting / Strategy formulation • Vision is re-visited
(15 days) • Policy revision/ formulation • New directions, policies, program designs
• Prioritization of PPAs designed or developed
• Consolidation of revised objectives, strategies & prioritized • Re-ranking of priorities
PPAs
Feb. 16 – 28 • Input review results in AIP forms • Transparency of plan is encouraged
(13 days) • Multi-stakeholder consultation on draft AIP
March 1- 15 • Match investment requirements with available resources. • LGU’s financial capacity is determined
(15 days) • Revise draft AIP if resources are inadequate; formulate • AIP is legitimized and approved.
needed policies
• Finalize AIP for endorsement to Sanggunian
• Sanggunian deliberates on AIP; approves and endorses to
LCE for final approval
March 16 – 30 LFC elevates to higher LGU/ NGRO AIP – identified projects Vertical linkage of projects that need funding is
94 (15 days) that cannot be financed by the concerned lower LGU. determined.
April 1 – 30 Higher LDC deliberates on projects proposed by lower LGU AIP – identified projects to be funded by higher
(30 days) for funding. LGU are identified.
May 1 – June 15 LFC prepares profiles of PPAs to be funded from the General Profiles disclose the planned activities of the LGU
(45 days) Fund of the LGU for the budget year.
June 16 – 30 • LCE issues “Budget Call” based on AIP (done after the Budget preparation guidelines contained in the
(15 days) initial IRA share is released by DBM) Budget Call serve as valuable and informative
• LFC finalizes spending ceiling by sector/ office materials for the budget preparation process.
• LFC conducts workshop / forum on the Budget Call
July 1- 31 Department Heads prepare & submit budget proposals AIP – Budget is linked and synchronized.
(31 days)
Aug. 16 – Sept. 15 LFC conducts technical budget hearings on proposals submit- Consistency of Budget with AIP is reviewed.
(30 days) ted by Department Heads
Sept. 16 – 30 LFC consolidates budget proposals into a Local Expenditure
(15 days) Program (LEP) and prepares the Budget of Expenditure and
Sources of Financing (BESF)
Oct. 1 – 15 LCE prepares Budget message & submits the same to the Budget is more focused and transparent.
(15 days) Sanggunian with the Executive Budget consisting of the LEP
& BESF.

Accomplishing the AIP Form

Once you have prepared your CDP, ELA and LDIP, it will now be easy to fill 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 Office based on the approved ELA
of the LGU as approved by the local sanggunian. The annual component of the Capital
Expenditure (Capex) shall be inputted by the Planning Coordinator and shall be inte-
grated by the Budget officer 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 filling 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 classification, 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 – signified by a fourth digit

Table 3.14 Reference Code by Sector and Sub-Sector

Sector / Sub-Sector Reference Code

Economic Services 80
Social Services
95
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

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

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

80 80 – 1 80 – 1 – 2

Economic Services Small & Medium Goat Raising Project

Enterprise (Project)
Development
Program (Program)
Small & Medium
Enterprise
Economic Services Development
(Sector) Program (Program)

Economic Services
(Sector)
 96
Table 3.15 AIP Form

CY ____ ANNUAL INVESTMENT PROGRAM (AIP)

BY PROGRAM/PROJECT/ACTIVITY BY SECTOR
AS OF __________________

PROVINCE/CITY/MUNICIPALITY/BARANGAY: ______________________

SCHEDULE OF IMPLE-
AMOUNT (in Thousand Pesos)
MENTATION
IMPLEMENTING OF- MAINTE-
AIP REFERENCE PROGRAM/PROJECT/ACTIV-
FICE/ EX- PER- NANCE
CODE ITY DESCRIPTION START- COMPLE- FUNDING CAPITAL
DEPARTMENT PECTED SONAL & OTHER TOTAL
(1) (2) ING DATE TION DATE SOURCE OUTLAY
(3) OUTPUTS SERVICES OPERATING (11)
(4) (5) (7) (CO) (10)
(6) (PS) (8) EXPENSES
(MOOE) (9)

General Public
Services
(10)

Economic Services
(80)

Social Services (30)

Prepared by: Attested by:

______________________________________________ _________________________________ __________________________________
Planning Officer Budget Officer Local Chief Executive
Date:_________________________________ Date:_____________________________ Date:______________________________
Column 2 – Describe briefly the project/ activity to be implemented. This information
can be derived from the project briefs.

Column 3 – Identify the implementing office/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.

97
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:

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

The LFC may also elevate to the higher LGU or to the regional offices 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/
office is finalized 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).
 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:

a. Issuance of the Budget Call

b. Preparation of the Executive Budget
c. Consultation with Multi-stakeholders

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:
98
a. General objectives, specific sectoral objectives, policy decisions, strategies and pri-
oritized PPAs by sector/ office as reflected in the AIP
b. Specific guidelines in the preparation of individual project proposals by department
heads, including the following details:
• Expenditure ceiling by office / sector
• Allocation scheme by major final 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 affected sectors are inte-
grated in the fiscal policies and PPAs approved and adopted by the LDC during the AIP
preparation process (UBOM, p. 59).
Figure 3.8 Budget Preparation Process

LOCAL CHIEF LOCAL FINANCE DEPARTMENT LOCAL

EXECUTIVE COMMITTEE HEADS SANGGUNIAN

Approves AIP Recommends

endorsed by the LDC appropriate tax or
and Sanggunian revenue measures or
borrowings to support
budget.

Recommends
Approved AIP resource allocation
measures & sectoral
spending ceilings.

Elevates to higher
LGU / NGRO AIP –
identified PPAs that
cannot be financed
by LGU

99
Prepares Project
Profiles/ Briefs for
Issues Budget Call
PPAs to be financed
based on AIP
by General Fund of
the LGU.

Conducts forum /
workshop on
Budget Call

Finalizes spending
ceiling by sector / Prepare & submit
office after initial IRA budget proposals
is released by DBM

Conduct technical budget hearings on

proposals submitted by Department Heads

Consolidates budget
Budget Message proposals into LEP;
prepares BESF

Submits to Budget Enacts Appropriation

Message, LEP & BESF Ordinance/ Veto in
to Sanggunian part or en toto
 Figure 3.9 Major Contents of the Executive Budget

BUDGET OF EXPENDITURE &

BUDGET MESSAGE LOCAL EXPENDITURE PROGRAM
SOURCES OF FINANCING

DETAILED CONTENTS

Comprehensive Estimates of Income Contains detailed & graphical presentation of

presentation of the • Beginning balance the expenditure program of the LGU.
Executive Budget • Income sources (tax revenues, operating
& miscellaneous revenue, capital
revenue, grants & aids, extraordinary
receipts, borrowings
Discusses the rationale for any proposed
Gives emphasis to the • Other sources of revenue
revenue generating measures to be
development goals & • Proposed measures to increase income
implemented during the budget year.
objectives, policies, of the LGU
strategies &* priority
PPAs for the budget year.

Expenditure Program – covers a 3-year period: Includes a 3-year comparative trend analysis
the past year, current year & budget year of the expenditure program by sector, office/
• Functional statement, objectives & department, covering the following:
Reflects income
expected results • Actual obligations for the past year
estimates, sources of
• Program structure, including expected • Actual & estimated expenditure for the current
funds that will finance
results or output indicators for each PPA year
the budget & how such
• Propose new appropriations language for • Proposed budget program for the ensuing year
income is allocated.
100 the budget year • Means & sources of financing for the 3-year
• Staffing & compensation profile period
• Special provisions

Provides the basis &

justification for policy
Determines the average cost of services per
decisions contained in Guidelines on the Special Purpose taxpayer & correlates the same with the
the Executive Budget Appropriation (SPA) for the following proposed increases for the budget year
purposes, among others:
• Development Projects (20% of IRA)
• Calamity (5% of Regular Income)
• Debt Service Interest Payment (20% of
regular income) Discloses the following:
• Budgetary support to Local Economic • extent of LGU compliance with the
Enterprises budgetary requirements under the Local
• Aid to barangays Government Code;
• Grants in Aid • tax collection efficiency
• revenue per capital & cost of borrowing

Guidelines on the General Provisions for

receipts, income & expenditure policies • Presents trend analysis of the revenue
• Explicit provisions on the manner & share from IRA & other ALGU shares in
procedure for revenue generation & comparison with locally-generated income
utilization
• General 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 Office/ Department &
Special Purposes Appropriation, reflecting the
total proposed budget for the budget year
3.6 DETERMINING CAPACITY DEVELOPMENT NEEDS FOR ELA
IMPLEMENTATION

The ELA, to be implemented effectively, 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 defining the LGU’s Capacity Development Agenda along
with the necessary capacity requirements for effective and efficient implementation of
the LGU’s priority programs and projects.

What is capacity?

The CIDA-LGSP defines 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 definition classifies capacity into three levels: individual capacity which refers to
the knowledge, skills, attitudes and values of individual employees; institutional capac- 101
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 affect the enabling environment.

What is capacity development?

Further using CIDA definition, 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 effectively 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 efforts of LGUs. A capacity development plan outlines the capabil-
ity building interventions or programs that need to be undertaken to address an identified
capability deficiency. The benefits derived from capacity development planning are not
only confined to Plan implementation but can last even beyond the plan period.
 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 confined 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:

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

Table 3.16 provides a sample for a Capacity Development Plan or capdev plan.
Table 3.16 Sample of a Capacity Development Plan for ELA Implementation

Priority HRD/ Implementation

Capacity Target Office Details
Sectoral Goal Desired outcome
Development Staff (timeframe, who are
Intervention involved)

Example 1: Computerization of Treasurer’s Office, Revenue collec- 1 year, treasury staff

Increased own- real property tax Assessor’s Office tion from RPT
source revenue increased by ___%
Example 2: Training of rural Rural health work- Upgraded knowl- 2 weeks, all rural
Improve access of health workers ers edge and skills of health workers in the
the poor to quality rural health work- LGU
primary health ers on primary
care services health care

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-
103
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 efficient 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 first to
go, as has been the practice of many LGUs as it is given the least priority.
 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 profile 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 3.9
Example of Capacity Assessment for a Revenue Goal
104
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 identified:

• 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 find 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 specific 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?
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,
specifically 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. Specifically, the LGPMS results for 105
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 financial 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 deficiency 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 deficiency and how it might be addressed. The strategies and actions
identified to address the deficiency/ies would form part of the LGU’s Capacity Develop-
ment Plan.

Not all capacity development issues may be adequately reflected 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 effort to improve LGU capacity should be geared towards
contributing to the attainment of development objectives and goals outlined in these
LGU plans.
 The Capacity Development Agenda outlines the capacity development strategies, pro-
grams and initiatives that need to be undertaken to address identified organizational
competency gaps, indicating the target groups, specific 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 define the necessary capacity requirements for effective and
efficient implementation of the LGU’s priority programs and projects.
106
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.
Advocating the Plan
T
he 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 107
the CDP and ELA. In formulating the ComPlan, it is important to choose
cost effective 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:

a. Objectives of the Local Development Plan, or what it intends to ac-

complish
b. List of intended audience
c. Key/Core messages to meet objectives
d. Methodology for getting the message across or delivered to the target
audience in a cost effective manner to achieve desired results
 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:

a. guide and coordinate all communications, both internally and externally

b. develop and maintain mutually beneficial relations with key audiences by ensuring
that the right message is aimed at the right audience at the right time and at the right
place
c. effectively sustain the momentum to popularize the ELA and gain broad-based sup-
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 offices and departments. This means
108 that each department/office will be expected to implement sections of the ComPlan that
pertain to or concerned with the functions of their respective department/office 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
offices and coordinated by the Local Public Information Office, if there is any. Otherwise,
promotions team may be organized under the Office 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. Modifications, 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:
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).

Table 4.1: Communication Plan Matrix

Over-all IEC Objective:

Key Communication Channels/ Feedback Success
Key Messages
Audiences Objectives Vehicles Mechanism Indicators
(SAMPLE) Make the public The Local Stickers, Community Increasing num-
Community aware of the ELA and Development Jingle, consultations ber of NGOs/
its merits. Plan promotes Pulong sa POs participat-
transparency, Barangay, Interviews ing in LGU activi-
good governance Performance ties/projects
and meaningful updates (ulat sa
people’s partici- bayan) Ordinary citizens
pation in the lo- Radio spots talk positively
cal development about the ELA
process.
CSOs/NGOs/
POs
Religious
Groups 109
Academe
Local Busi-
ness-men
Local and
Interna-tional
Funding/ do-
nor agencies

b. Define 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 confidence 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.
 c. Identify Target Audiences

List all possible audiences that the team will need to contact, attempt to influence, 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. Define 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.

110 • ELA preparation process involves multi-stakeholder consultation and participation
• ELA allows meaningful citizen participation in decision-making and implementation
of programs and projects
• ELA 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 effective. 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:
 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:

Certificates and awards Media relations and public relations materials

Online communications
Meeting and conference materials
Marketing and sales tools
Signage
Speeches
Incoming communications, including reception procedures and
voice mail content
Identity materials, including letterhead, logo, and envelopes
Legal and legislative documents
Periodic print publications 111
Annual reports

f. Pre-test communication strategies and tools

In order to maximize the benefits 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.
 Box 4.1
Pre-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 specific 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.

4.3 IMPLEMENTING THE COMMUNICATIONS PLAN

Once objectives, goals, audiences, and tools have been identified, quantify the results
in a calendar grid that outlines roughly what and when activities will be accomplished
(Please refer to Table 4.2).
112
Table 4.2: IEC Implementation Plan Matrix
Communication Key Message Channels/ Time Responsible
Target Audience
Objectives Example: Events Table Offices
Example: The ELA Community, Stickers,
promotes CSOs, NGOs, POs, Jingle,
Make the public transparency, Private sector / Pulong sa
aware of the good governance Local Business- Barangay,
merits of Local and meaningful men, Performance
Development Plan people’s Funding agencies updates (ulat sa
participation bayan)
Fostering better in the local Radio spots
relations with development Periodic
stakeholders to get process. publications,
their support and Website,
active participation Brochure
in Plan formulation
A successful
and implement-
implement-tation
tation.
of the ELA needs
the support
and active
participation of its
stakeholders.
The promotions and marketing of the plan can now be started by:

a. distributing communication materials through all channels chosen

b. reviewing activities and tracking audience reactions

Monitoring and Evaluating Results of the ComPlan

Evaluating the ComPlan entails the following:

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

The evaluation might take the form of:

• a monthly report on work in progress

• formalized department reports
• periodic briefings of the department heads
• a year-end summary for the annual report

It also involves gathering feedback to refine the ComPlan or IEC Plan by talking to com-
munity members and asking them how the campaign changed what they thought or be- 113
lieved about the Local Development Plan – its process, policies, programs and projects.
The same techniques as in pre- testing the ComPlan may be used.
Monitoring & Evaluation
5.1 WHAT IS MONITORING AND EVALUATION (M & E)?

M&E functions as a performance measurement mechanism to give indica-

tions on how future efforts in the LGU might be improved.

Monitoring and evaluation differ yet are closely related (UNDP 1997). While
they are both necessary management tools to inform decision-making, they
produce different kinds of information. Monitoring can provide both quali-
tative and quantitative data that can serve as inputs to evaluation. System- 115
atically generated monitoring data is essential for successful evaluations.

Table 5.1 shows the salient features differentiating monitoring from

evaluation:

Who will conduct M & E?

The plan monitoring team (MT) needs to be identified 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.
 a. Sectoral or Functional Committees and the Local Planning and Development Office

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 different 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 effects 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
Monitoring
Factors of M & E
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,
116 resource use, cost);
Focus Programs, projects and activities
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-
ficiently and effectively;
• Identifies 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 actions
• Provides recommendations for reme-
dial actions.
Evaluation
• 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,
efficiency, effectiveness, benefits,
impact and sustainability of the plan;
Overall relevance, impact and sustain-
ability
• Generates information and provides
lessons that would guide the LGU in
updating the Comprehensive Devel-
opment Plan;
• Ensures informed decision-making
• Identifies 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 citizens
• Ensures 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).
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-
ficer assigned in the area
• One 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
Box 5.1
Conducting Orientation Meeting
for the Monitoring Team
Coinciding with the first organiza-
tional meeting of the MT, an orienta-
tion briefing will be conducted to
set the team in motion. The LPDO
together with the LGOO shall jointly
undertake this activity.

The Chair of the PMC will be appointed by the LCE from The organizational-orientation
among three nominees nominated out of the seven PMC meeting shall cover the following:
members.
a. Basic information on M&E
b. Tools, instruments and method-
c. The Legislative Oversight Committee ology for M&E
c. Functions, duties and responsi-
bilities of the MT
Legislative oversight is an integral part of the legislative d. Highlights and salient points of
process. Legislative oversight refers to the legislature’s the plan
review and evaluation of activities of the executive branch. e. M & E Calendar
The sanggunian has a duty to ensure that plans, programs
and projects are implemented and administered efficiently,
effectively and in a manner consistent with legislative intent. Oversight is the focus of 117
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 Office of Programs/Projects - For short-term monitoring of project

implementation, the responsibility should remain with the implementing office. 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:
 a. Suggestion box
b. Sending short message service (SMS) or text to local officials
c. Report Card Survey

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 officials 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.

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

YEAR Q1 Q2 Q3 Q4

Implementation of Last Year Budget and AIP of previous administration

Election End-of-Term Report/State of
118
M&E (Output, Outcome Local Governance Report1
Year 1 and Impact of Outgoing Inaugural of New Term
Administration’s ELA)
Preparation of LDIP/ELA
Preparation of Yr 2 Budget and 1st AIP
Implementation of Yr 2 Budget and 1st AIP
Preparation of Yr 3 Budget and 2nd AIP
Q1 Q2 Q3 Q4
Year 2
M&E (Outputs and
Financial Performance)
End-of-Year Report
Implementation of Yr 3 Budget and 2nd AIP
M&E (Outcome of 1st Preparation of Yr 4 Budget and 3rd AIP
Year 3 AIP)
M&E (Outputs and
Financial Performance)
End-of-Year Report
Implementation of Yr 4 Budget and 3rd AIP
Election End-of-Term Report
Year 4 M&E (Outcome and Inaugural of New Term
Impact of present Ad-
ministration’s ELA)
Source: Serote 2005
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:

a. Clear and expected results (goals, objectives, outputs);

b. Explicit targets per result;
c. Indicators to measure progress towards results;
d. Data source to assess performance;
e. Collection methods;
f. Frequency at which measurements will be made
g. Roles and responsibilities

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-
eficiaries are, the area coverage as well as the costs of the
programs and projects implemented.
119
Box 5.2
The 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.

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

c. Peace and Conflict 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 conflict. The tool identifies five impact areas that LGUs should closely look
into:
• conflict 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 five 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 five performance areas and 17 service
areas using 107 indicators. Table 5.4 shows the five performance areas and the distri-
bution of indicators per service area.
120
Table 5.3 M&E Strategy

Data Source
Performance Targets per Collection Responsibility
Results to Assess Frequency
Indicators Indicator Methods Center
Performance
Goal/Impact Mortality Rate Reduce chil- LGU Health Document Every three Monitoring
(Long term) of children aged dren under- Office review years and at Team
1-5 (LGPMS out- five mortality the end of
Reduce infant come indicator) rate by two- nine years
mortality (MDG thirds by 2015
no. 4) (MDG Target
no. 4)
Objective/ Every three Monitoring
(Medium term) years Team

Program or End of project Annual Monitoring

project outcome status Team
or
Goods, services,
Outputs/ failities, infra-
Deliverables structure a pro-
(Short term) gram or projects
has delivered
Activities Every execu- Department
(Ongoing) tive commit- Heads
tee meeting
Table 5.4 Local Governance Performance Management System

No. of Indicators
Performance Area Service Area
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- 5 2 2
ness
Economic Develop- Agriculture and Fisheries Development 3 4 3
ment
Entrepreneurship, Business and Industry 3 2 2
Promotion 121
Environmental Man- Natural Resources Management 3 1 3
agement
Waste Management and Pollution 2 2 5
Control

5.3 EFFECTIVELY COMMUNICATING AND USING M&E RESULTS

Communicating the results of the monitoring and evaluation process to different 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 effective 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 briefings 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
 them in coming up with appropriate adjustments to mitigate the effects of the problem
or with solutions to address them.

Some useful questions that you can ask during monitoring include:

• Are we implementing the identified programs and projects in the plan? What are not
being implemented?
• Are we on schedule? Are priority programs and projects identified 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 identified 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 officials, M&E results provide inputs

for the next planning stage. The information allow
122 them to identify the extent to which the objectives
of the CDP and ELA have been achieved or whether
the plan has effectively 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 benefited from the programs and projects?
How many benefited from the interventions?
• What priority programs and projects identified 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 5.3
The 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 five 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.
Table 5.5 Annual/End-Of-Term Accomplishment Report

CY __________ ANNUAL/END-OF-TERM ACCOMPLISHMENT REPORT

Province/City/Municipality of ______________________________________

Programs and Projects per Outcome/Output Indica- Target Accomplishment Beneficiary Coverage Project Cost Actual
Sector tors Sector Area (Php) Disbursement
Social Sector
Nutri-Health Program Number of barangays All barangays 50% of barangays Women and 50 % of baran- 2 Million
covered by micro-nutri- Children gays
ent supplementation
Number of barangays
covered by nutrition
education All barangays 20% of barangays Women and 50 % of baran- 1.2 Million
children gays

Water Supply Project % of total number of 10% of all 10% of all house- Urban Poor Barangay 5 Million
households covered households holds Poblacion
2. Culture and Peace

3. Economic Sector

4. Infrastructure

5. Environment

6. Institutional
123
 Annexes
ANNEX 1.1
INDICATIVE 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 125
as the methodology for each step of the process. The training program
will contain five modules, listed as follows:

MODULE 1: INTRODUCTION

Session 1: Surfacing and Leveling of Expectations

Session 2: Understanding the Planning Team’s Functions and Structure
Session 3: Revisiting Past Planning Experiences
Session 4: The Rationalized Planning System

MODULE 2: DEVELOPMENT PARADIGMS

Session 1: Sustainable Development

Session 2: Poverty
Session 3: Conflict Sensitive and Peace Promoting Planning
 MODULE 3: THE COMPREHENSIVE DEVELOPMENT PLAN AND THE
EXECUTIVE LEGISLATIVE AGENDA

Session 5: Overview of the CDP-ELA Process

Session 6: Visioning Process,
Session 7: Situational Analysis and Determination of Vision – Reality Gap; Goal and
Objective Formulation and Target Setting
Session 6: Identifying Solutions: Developing Strategies, Programs, Projects and
Activities
Session 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 Plan

Session 10: Developing the Com Plan
Session 11: Implementing the ComPlan

MODULE 5: IMPLEMENTING THE PLAN

Session 12: The Local Development Investment Program (LDIP) Process

Session 13: The LGU Development Fund
126 Session 14: LGU Financing Plan
Session 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 identified earlier can be discussed and addressed.
Annex 1.2
ADDITIONAL 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 conflict 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 conflict sensitive and peace promoting planning?

(Appreciating benefits and advantages)

Session 2: Sharpening our peace lens: Mainstreaming Human Security and Conflict
Sensitivity in Local Governance Processes particularly in Local Develop-
ment Planning

Session 3: Overview of the CDP-ELA Process with peace promoting and conflict sensi-
tive tools

Session 4: Information data-base for peace planning: CBMS, LGPMS and HS Indicators 127

Session 5: Conflict analysis and Peace and Conflict Impact Analysis as additional tools
in Relevant Planning Steps
 Annex 1.3
WORK PLAN TEMPLATE

Responsible
Activities Timeframe Expected Output Resources Needed
Person/Office

128
Annex 2.1
SYNCHRONIZED LOCAL PLANNING AND BUDGETTING CALENDAR

Period Covered Activity Outputs Actors

1st week of January PPDC sets guidelines for data gather- Guidelines for Data Gather- PPDCs
ing ing
January-March Updating of planning and budgeting Updated planning, budget- LPDCs, budget officers,
database (socio-economic, physical ing and financial database treasurers, department
resources, time series revenue and heads, NGAs/RLAs
expenditure dat, project profiles/sta-
tus, among others
April-May Analysis of planning environment for Draft situational analysis LPDCs, NGAs/RLAs
plan preparation/review/updating and assessment of plan
implementation
April-May Updating of appropriate AIP in the Indicative AIP (the first year LDCs, LPDCs
LDIP as input to budgeting of the LDIP in the case of
election year
June 1-15 or 1st week of Preparation of AIP Summary Form for Indicative AIP (the first year LPDCs, local budget
August during election the budget year of the LDIP in the case of officers
year election year
Not later than 1st week of Approval of AIP AIP for the budget year Sanggunian 129
August
PDPFP/CDP Preparation
1st week of July during Reconstitution of the LCD based on Timetable and tasking for LCEs
election year initial guidelines, including mechanism plan preparation/updating
for choosing private sector represen-
tative, prepared by LPDC
Whole month of July Formulation of development vision, Vision, goals, strategies, LDCs, LPDCs, Depart-
goals, strategies, objectives/targets objectives, targets and PPAs ment heads, NGAs/
and identification of PPAs RLAs
Harmonization and complementation Harmonized vision, goals Jointly by the province
of development vision, goals, and stra- and strategic direction and component LGUs
tegic direction between and among
province and component cities/mu-
nicipalities
Approval of PDPFP/CDP PDPFP/CDP Sanggunian
LDIP Preparation
June-July1-31 during elec- Identification of areas for complemen- Joint programs and project LPDCs of province and
tion year tation of PPAs between and among component cities and
province and component cities/mu- municipalities, NGAs/
nicipalities RLAs
Prioritization of PPAs Prioritized PPAs LDC, LFC, NGAs/RLAs
Matching of PPAs with available LDIP, revenue generation LDC, LFC, NGAs/RLAs
financing resources and determina- measures
tion of additional revenue sources to
finance the PPAs
Approval of LDIP Approved LDIP Sanggunian
 Period Covered Activity Outputs Actors

June 16-30 or 1st week of Issuance of Budget Call Budget Call LCEs (province, city,
July during election year municipality)
July 1-15 Submission to LCE of certified 3-year Certified statement of Local treasurer (prov-
statement of income and expenditures income and expenditures ince, city, municipality)

Department budget ceilings Local department heads

On or before September Submission to the Punong Barangay of Statement of Income and Barangay Treasurer
1-15 statement of income and expenditure Expenditure
for the ensuing year
July 1-15 Preparation and submission of budget Budget proposals Local department heads
proposals
July 16-August 31 Technical budget hearing of proposals Reviewed budget proposals LFC
September 16-30 Consolidation of budget proposals Local Expenditure Program LFC
into the Local Expenditure Program and BESF
and preparation of Budget and
Sources of Financing
Not later than October 16 Preparation of the budget message Budget Message and Ex- LCEs (province, city,
and submission of executive budget to ecutive Budget municipality)
the Sanggunian
……………………….October 17 Enactment of Local Annual Budget Local Appropriations Ordi- Sanggunian (province,
onwards nance city. Municipality)

130 Within three days from Submission of the annual or supple-

approval of budget mental budgets of province, city and
municipality to appropriate reviewing
authority
Within 90 days from ap- Review of the annual or supplemen- Reviewed budget DBM Regional Offices,
proval of local budget tal budgets of the province, city and Sangguniang Panlala-
municipality wigan

Within 10 days from ap- Submission of the annual or supple- Barangay Budget Sanggunian Barangay
proval of barangay budget mental budgets of barangays to ap-
propriate reviewing authority
Within 60 days from ap- Review of the annual or supplemental Reviewed budget Sanggunian (city,
proval of annual budget or budgets of barangays municipality) through
supplemental budgets the respective Budget
Officer
Year round Implementation/execution of annual LCEs
budget
Annex 2.1.1
WORKSHOP 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.

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 five) to correspond to the key vision ele-
ments (or sectoral groupings) and give them time to individually reflect 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 131
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 final 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 finalizes the vision statement taking into consideration the
group’s comments and suggestions.
 Annex 2.1.2
WORKSHOP 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
conflict 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 conflict prevention and
the requirements of mainstreaming human security in local governance (Use as refer-
ence OPAPP-PIDO-STRIDES Guidebook entitled Conflict-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?

132 Questions are extremely useful in bringing out initial ideas from people.

STEP 3 Divide the participants into groups (preferably five) to correspond to the key vision ele-
ments (or sectoral groupings) and give them time to individually reflect 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 specific 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 final 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 finalizes the vision statement taking into consideration the
group’s comments and suggestions.
Annex 2.2.1
CBMS INDICATORS
Indicators
Proportion of children aged 0-5 years old who died
Proportion of women who died due to pregnancy
related causes.
Proportion of children aged 0-5 years old who are
malnourished
Proportion of households living in makeshift housing.
Proportion of households that are squatters.
Proportion of households without access to safe water
supply.
Proportion of households without access to sanitary
toilet facilities.
Proportion of children aged 6-12 years old who are not
attending elementary school.
Proportion of children aged 13-16 years old who are not
attending secondary school.
Proportion of households with income below the pov-
erty threshold.
Proportion of households with income below the food
(subsistence) threshold.
Proportion of households that experienced food short-
age.
Proportion of persons who are unemployed.
Proportion of persons who were victims of crimes.
Source: Philippine Institute for Development Studies
Definition
Death occurred after birth up to the age of 5 years. This
excludes fetal deaths.
Pregnancy-related death is defined as the death of a
woman while pregnant or within 42 days of termination
of pregnancy, irrespective of the cause of death.
Total number of children aged 0-5 years old who are
malnourished over total number of children aged 0-5
years old
Considered as makeshift housing as those housing
structure with makeshift/salvaged materials in walls and/
or roof.
Considered as squatters are those households that live
in house and/or lot that they do not own and without
permission/consent of owner.
Considered as sanitary toilet facility are water-sealed
flush to sewerage system or septic tank and closed pit,
whether own use or shared with other households.
Considered as sanitary toilet facility are water-sealed 133
flush to sewerage system or septic tank and closed pit,
whether own use or shared with other households.
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.
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.
Poverty threshold is estimated by inflating the officially
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.
Food (subsistence) threshold is estimated by inflating the
officially released food (subsistence) threshold of NSCB
using prevailing monthly consumer price indices (CPI)
from NSO for the reference period of the survey.
Total number of households that experienced food short-
age over total number of households.
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.
Household member became a victim of murder, theft,
rape, abuse or physical injury regardless of place of occur-
rence of the crime.
 Annex 2.2.2
SAMPLE MATRIX: THE LOCAL DEVELOPMENT INDICATORS

GEOGRAPHICAL AREAS
DATA/
Smaller Spatial Units REMARKS
INFORMATION INDICATOR Planning Larger Spatial
Area Unit 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,
134 (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
Annex 2.3.1
CDP AND ELA PLANNING MATRIX

City/Municipal Vision:

Programs, Projects and

Sector Sectoral Goal Objectives and Targets Strategies
Activities

135
 Annex 2.3.2
WORKSHOP: PROBLEM ANALYSIS

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 flooding

Erosion of vast tracts of land
STEP 2 Establish the cause a-effect relationship among the problems identified
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 identified 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.
136

SAMPLE PROBLEM TREE OF DETERIORATING FOREST CONDITION

DAMAGED CROPS

FREQUENT FLOODING

E
F
F OVERFLOW OF
HEAVY SILTATION SOIL EROSION
E RIVERS
C
T
S
DETERIORATING FOREST
CORE PROBLEM
CONDITION
C
A
U
S RAMPANT PRACTICE OF RAMPANT SMALL SCALE
E KAINGIN MINING
S

FOREST COMMUNITIES
LACK OF LIVELIHOOD
NOT ORGANIZED
Annex 2.4
WORKSHOP: 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 identified
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 Profile 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

137

SAMPLE MATRIX: VISION-REALITY GAP ANALYSIS

A. Social Goals

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

B. Economic Goals

Descriptor Success Indicator Rating Interpretation

Vibrant Number of new invest- 8 New investments have more than doubled
economy ments
 Annex 2.5
WORKSHOP: 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.

138
SAMPLE OBJECTIVE TREE OF DETERIORATING FOREST CONDITION

REDUCED DAMAGED
TO CROPS

REDUCED
FLOODING

E REDUCED REDUCED OVERFLOW SOIL EROSION

N SILTATION OF RIVERS MINIMIZED
D
S

IMPROVED FOREST
CORE OBJECTIVE
CONDITION
M
E
A
N KAINGIN PRACTICES ORDINANCE CONTROLING
S PREVENTED SMALL SCALE MINING

FOREST COMMUNITIES LIVELIHOOD PROJECTS

ORGANIZED PROVIDED
Annex 2.6
SWOT ANALYSIS

SWOT Analysis
Internal
Guide Questions Internal Strengths Guide Questions
Weaknesses
Competitive advantages? SAMPLE Gaps in capabilities?

Capabilities? Unique Tourism Assets Lack of competitive strength?

USP's (unique selling points)? Reputation, presence and

reach?
Resources, Assets, People?
Own known vulnerabilities?
Staff specialization, Experience,
knowledge, data? Reliability of data, data gaps?

Innovative aspects? Morale, commitment,

leadership?
Location and geographical characteristics?
Accreditations, etc?
Equipments?
Processes and systems, etc?
Accreditations (e.g. ISO) 139
Qualifications, Certifications?

Processes, systems, IT?

Cultural, attitudinal, behavioural?

Philosophy and values?

Guide Questions External Opportunities External Threats Guide Questions

National thrusts SAMPLE Legislative effects?

Market developments? Increased interest in Environmental effects?

ecotourism worldwide
Industry or lifestyle trends? IT developments?

Technology development and innovation? Market demand?

Global influences? New technologies, services,

ideas?
New markets, vertical, horizontal?
Vital contracts and partners?
Niche target markets?
Loss of key staff?
Geographical, export, import? Economy

New USP's?

Information and research?

Partnerships
Adapted from Chapman, A 2005
 Annex 2.7
WORKSHOP: 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, fisherfolk, environmentalists, health workers, youth, women, elderly, disabled,
civic groups, businessmen and industrialists, elective and appointive officials, 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%
140
STEP 4 Each proposed project will be rated by the groups using the following scale:

1 Project contributes slightly to the fulfillment of goal

2 Project contributes moderately to the fulfillment of goal
3 Project contributes greatly to the fulfillment of goal
0 Project does not contribute to the fulfillment of the goal
-1 Project slightly inconsistent with the fulfillment of the goal
-2 Project moderately inconsistent with the fulfillment of the goal
-3 Project greatly inconsistent or contradicts the fulfillment of the goal

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 finally 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 reflects the cumulative or running total.
SAMPLE: PRIORITIZING PROGRAMS AND PROJECTS USING GAM

Table 2.7a Example of Summary of Societal Sectors’ Ratings

Group Ratings Total
No. PROJECT Rank
1 2 3 4 5 6 7 8 9 Score

1 Bulilit Ko Pan-Aralen Ko: A Pre-School Educa- 1.68 1.77 2.73 0.8 0.8 1.57 1.36 0.75 0.58 12.04 23
tion Access Program
2 Dagupan City Ecological Waste Management 1.33 2.71 2.49 1.91 1.2 1.55 1.36 1.63 1.49 15.69 9
Plan
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 2 1.42 2.49 1.22 1.51 1.69 1.74 1.83 1.3 15.2 12
Wholesale Fish Trading Center)
6 Information and Education Campaign on the 1.76 1.66 1.8 2.3 1.56 1.38 1.24 2.22 1.36 15.18 13
CLUP/Zoning Ordinance
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- 1.22 1.54 1.58 1.58 1.24 1.74 1.85 1.61 1.47 13.63 17
hood Opportunities
11 Malimgas Tan Marakep Ya Ilog (Pantal River- 2.03 1.86 2.44 2.28 1.33 1.66 1.5 1.65 1.49 16.24 7
side Redevelopment)
12 Transportation and Traffic Management Plan 2.21 2.36 2.48 1.88 1.43 1.44 2.37 2.19 1.73 17.39 5 141
for Dagupan City
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 1.21 1.16 3 1.23 0.43 1.28 1.39 1.07 1.46 12.23 21
System along Don Jose Calimlim Street, Pogo
Chico
18 Dagupan City Tourism Master Development 1.79 2.07 2.58 1.4 1.37 2.36 1.87 1.88 2.12 17.44 4
Plan and Promotion
19 merged with 10 0
20 Development of an Information System on 0.81 1 2.13 1.68 0.63 1.42 1.55 1.07 1.3 11.59 24
Establishments
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 1.45 1.84 2.18 1.89 1.26 1.34 1.85 1.62 1.51 14.94 15
and Management Plan
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- 1.44 2.12 2.42 2.55 1.26 1.66 1.66 1.28 1.41 15.8 8
tation of Dagupan City
27 Abong Ko Lusek Ko (My Home, My Pillar): 1.46 2.96 1.95 2.19 0.85 1.59 2 0.84 1.23 15.07 14
A Comprehensive Concrete Values Training
Program
28 Socialized Housing and Resettlement Program 2 2.38 2 1.9 2.3 2.07 2 2.42 2.37 19.44 1

Source: Dagupan City LDIP (2003-2005)

Table 2.7b1: Group 1 Output
PROJECT NUMBER
GOAL WEIGHT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 20 21 22 23 24 25 26 27
1 0.12 0.24 0.12 0.24 0.00 0.36 0.24 0.24 0.24 0.24 0.12 0.36 0.24 0.12 0.36 0.24 0.00 0.36 0.12 0.12 0.36 0.24 0.24 0.12 0.24 0.24
2 0.12 0.24 0.36 0.24 0.24 0.24 0.24 0.24 0.36 0.24 0.12 0.36 0.24 0.24 0.36 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24
3 0.11 0.22 0.22 0.11 0.11 0.22 0.22 0.22 0.22 0.22 0.11 0.22 0.33 0.22 0.11 0.22 0.22 0.22 0.11 0.22 0.11 0.22 0.22 0.22 0.22 0.11
4 0.10 0.10 0.10 0.10 0.20 0.20 0.20 0.10 0.10 0.20 0.10 0.10 0.20 0.10 0.10 0.20 0.10 0.30 0.11 0.00 0.10 0.10 0.10 0.20 0.10 0.10
5 0.11 0.33 0.11 0.00 0.00 0.11 0.11 0.22 0.33 0.11 0.11 0.11 0.22 0.00 0.33 0.11 0.00 0.11 0.00 0.11 0.33 0.00 0.11 0.11 0.11 0.22
6 0.11 0.22 0.11 0.22 0.22 0.33 0.22 0.22 0.22 0.33 0.22 0.22 0.22 0.33 0.22 0.33 0.11 0.11 0.22 0.00 0.22 0.22 0.22 0.11 0.11 0.22
7 0.11 0.11 0.11 0.11 0.22 0.22 0.11 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.33 0.22 0.11 -0.11 0.00 0.11 0.11 0.22 0.11 0.22 0.11
8 0.12 0.12 0.00 0.12 0.12 0.12 0.22 0.24 0.36 0.24 0.12 0.24 0.24 0.24 0.24 0.12 0.12 0.24 0.12 0.24 0.24 0.12 0.12 0.00 0.00 0.12
9 0.10 0.10 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.10 0.20 0.30 0.20 0.10 0.20 0.20 0.10 0.00 0.20 0.20 0.20 0.20 0.20 0.20 0.10
Total 1.00 1.68 1.33 1.34 1.31 2 1.76 1.9 2.25 2 1.22 2.03 2.21 1.67 2.04 1.99 1.21 1.79 0.81 1.13 1.91 1.45 1.67 1.31 1.44 1.46
Table 2.7b2: Group 2 Output
PROJECT NUMBER
GOAL WEIGHT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 20 21 22 23 24 25 26 27 28
1 0.07 0.07 0.07 -0.07 0.00 0.21 0.07 0.21 0.14 0.07 0.07 0.07 0.14 0.07 0.21 0.14 0.00 0.21 0.07 0.00 0.07 0.14 0.07 0.00 0.14 0.21 0.07
2 0.16 0.16 0.48 -0.16 0.48 0.32 0.32 0.16 0.48 0.16 0.32 0.48 0.32 0.16 0.48 0.48 0.48 0.32 0.16 0.32 0.16 0.48 0.48 0.48 0.48 0.48 0.32
3 0.12 0.24 0.36 -0.12 0.12 0.12 0.36 0.24 0.12 0.12 0.12 0.24 0.12 0.12 0.36 0.12 0.12 0.24 0.12 0.24 0.12 0.12 0.36 0.24 0.36 0.36 0.24
4 0.06 0.12 0.18 0.06 0.06 0.12 0.12 0.00 0.06 0.06 0.12 0.06 0.06 0.06 0.18 0.12 0.06 0.12 0.06 0.00 0.06 0.12 0.06 0.06 0.12 0.18 0.06
5 0.19 0.57 0.57 0.19 0.19 0.00 0.19 0.00 0.57 0.00 0.19 0.19 0.38 0.19 0.57 0.19 0.19 0.38 0.19 0.00 0.57 0.19 0.19 0.19 0.38 0.57 0.57
6 0.18 0.18 0.54 0.18 0.36 0.54 0.36 0.18 0.36 0.54 0.54 0.54 0.36 0.36 0.54 0.54 0.18 0.36 0.18 0.38 0.54 0.54 0.54 0.36 0.36 0.54 0.54
7 0.04 0.04 0.12 0.04 0.04 0.08 0.00 0.08 0.12 0.04 0.12 0.04 0.08 0.04 0.08 0.12 0.04 0.08 0.04 0.04 0.00 0.04 0.04 0.04 0.04 0.08 0.04
8 0.15 0.30 0.30 0.00 0.00 0.00 0.15 0.15 0.45 0.15 0.00 0.15 0.30 0.15 0.45 0.00 0.00 0.30 0.15 0.30 0.00 0.15 0.15 0.15 0.15 0.45 0.45
9 0.03 0.09 0.09 0.03 0.06 0.03 0.09 0.09 0.03 0.03 0.06 0.09 0.60 0.06 0.09 0.06 0.09 0.06 0.03 0.09 0.03 0.06 0.06 0.03 0.09 0.09 0.09
Total 1.00 1.77 2.71 0.15 1.31 1.42 1.66 1.11 2.33 1.17 1.54 1.86 2.36 1.21 2.96 1.77 1.16 2.07 1 1.37 1.55 1.84 1.95 1.55 2.12 2.96 2.38

142
Table 2.7c: Example of Ranked List of Projects with Cost Estimates

Cost Estimate (Pesos)

Rank Project Title Type Sector
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 Soft Economic 4,000,000 917,900,000
and Promotion
5 Transportation and Traffic Management Plan for Soft Land Use & 940,000 918,840,000
Dagupan City Infrastructure
6 River Study Project Hard Environment 2,000,000 920,840,000
7 Malimgas Tan Marakep Ya Ilog (Pantal Riverside Hard Land Use & 8,606,000 929,446,000
Redevelopment) Infrastructure
8 Urban Green Space Enhancement & Rehabilitation Hard Environment 5,300,000 934,746,000
of Dagupan City
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 Hard Land Use & 104,580,000 1,068,039,000
Fish Trading Center) Infrastructure
13 Information & Education Campaign on the CLUP/ Soft Institutional 500,000 1,068,539,000
Zoning Ordinance 143
13 Redevelopment of Tondaligan People's Park Hard Land Use & 17,900,000 1,086,439,000
Infrastructure
15 Abong Ko Lusek Ko (My Home, My Pillar ): A Soft Social 1,700,000 1,088,139,000
Comprehensive Concrete Values Training Program
16 Comprehensive Urban Disaster Preparedness and Soft Environment 6,500,000 1,094,639,000
Management Plan
17 CBD Sidewalk Recovery and Improvement Hard Land Use & 8,700,000 1,103,339,000
Infrastructure
18 Skills Training for Trading, Services and Livelihood Soft Economic 1,200,000 1,104,539,000
Opportunities
19 Water Quality Monitoring and Assessment in Soft Environment 2,000,000 1,106,539,000
Dagupan City
20 Market Expansion Project Hard Institutional 505,000,000 1,611,539,000
21 Upgrading of Water Transport Facilities Hard Land Use & 2,400,000 1,613,939,000
Infrastructure
22 Construction and Rehabilitation of Drainage Sys- Hard Land Use & 1,200,000 1,615,139,000
tem along Don Jose Calimlim Street, Pogo Chico Infrastructure
23 Modern Slaughterhouse Hard Institutional 24,000,000 1,639,139,000
24 Bulilit Ko Pan-Aralen Ko: A Pre-School Education Soft Social 2,190,000 1,641,329,000
Access Program
25 Development of an Information System on Estab- Soft Economic 1,500,000 1,642,829,000
lishments
26 MIS for Zoning and Tax Mapping Project Soft Institutional 2,570,000 1,645,399,000

Source: Dagupan City LDIP (2003-2005)

 Sample: Prioritizing Programs and Projects Using GAM
Table 2.7a Example of Summary of Societal Sectors’ Ratings
Group Ratings
No. PROJECT Total
1 2 3 4 5 6 7 8 9 Rank
Score
1 Bulilit Ko Pan-Aralen Ko: A Pre-School Educa- 1.68 1.77 2.73 0.8 0.8 1.57 1.36 0.75 0.58 12.04 23
tion Access Program
2 Dagupan City Ecological Waste Management 1.33 2.71 2.49 1.91 1.2 1.55 1.36 1.63 1.49 15.69 9
Plan
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 2 1.42 2.49 1.22 1.51 1.69 1.74 1.83 1.3 15.2 12
Wholesale Fish Trading Center)
6 Information and Education Campaign on the 1.76 1.66 1.8 2.3 1.56 1.38 1.24 2.22 1.36 15.18 13
CLUP/Zoning Ordinance
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- 1.22 1.54 1.58 1.58 1.24 1.74 1.85 1.61 1.47 13.63 17
hood Opportunities
11 Malimgas Tan Marakep Ya Ilog (Pantal River- 2.03 1.86 2.44 2.28 1.33 1.66 1.5 1.65 1.49 16.24 7
side Redevelopment)
144
12 Transportation and Traffic Management Plan 2.21 2.36 2.48 1.88 1.43 1.44 2.37 2.19 1.73 17.39 5
for Dagupan City
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 1.21 1.16 3 1.23 0.43 1.28 1.39 1.07 1.46 12.23 21
System along Don Jose Calimlim Street, Pogo
Chico
18 Dagupan City Tourism Master Development 1.79 2.07 2.58 1.4 1.37 2.36 1.87 1.88 2.12 17.44 4
Plan and Promotion
19 merged with 10 0
20 Development of an Information System on 0.81 1 2.13 1.68 0.63 1.42 1.55 1.07 1.3 11.59 24
Establishments
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 1.45 1.84 2.18 1.89 1.26 1.34 1.85 1.62 1.51 14.94 15
and Management Plan
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- 1.44 2.12 2.42 2.55 1.26 1.66 1.66 1.28 1.41 15.8 8
tation of Dagupan City
27 Abong Ko Lusek Ko (My Home, My Pillar): 1.46 2.96 1.95 2.19 0.85 1.59 2 0.84 1.23 15.07 14
A Comprehensive Concrete Values Training
Program
28 Socialized Housing and Resettlement Program 2 2.38 2 1.9 2.3 2.07 2 2.42 2.37 19.44 1
Source: Dagupan City LDIP (2003-2005)
 145

Table 2.7b1: Group 1 Output

PROJECT NUMBER
GOAL WEIGHT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 20 21 22 23 24 25 26 27
1 0.12 0.24 0.12 0.24 0.00 0.36 0.24 0.24 0.24 0.24 0.12 0.36 0.24 0.12 0.36 0.24 0.00 0.36 0.12 0.12 0.36 0.24 0.24 0.12 0.24 0.24
2 0.12 0.24 0.36 0.24 0.24 0.24 0.24 0.24 0.36 0.24 0.12 0.36 0.24 0.24 0.36 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24
3 0.11 0.22 0.22 0.11 0.11 0.22 0.22 0.22 0.22 0.22 0.11 0.22 0.33 0.22 0.11 0.22 0.22 0.22 0.11 0.22 0.11 0.22 0.22 0.22 0.22 0.11
4 0.10 0.10 0.10 0.10 0.20 0.20 0.20 0.10 0.10 0.20 0.10 0.10 0.20 0.10 0.10 0.20 0.10 0.30 0.11 0.00 0.10 0.10 0.10 0.20 0.10 0.10
5 0.11 0.33 0.11 0.00 0.00 0.11 0.11 0.22 0.33 0.11 0.11 0.11 0.22 0.00 0.33 0.11 0.00 0.11 0.00 0.11 0.33 0.00 0.11 0.11 0.11 0.22
6 0.11 0.22 0.11 0.22 0.22 0.33 0.22 0.22 0.22 0.33 0.22 0.22 0.22 0.33 0.22 0.33 0.11 0.11 0.22 0.00 0.22 0.22 0.22 0.11 0.11 0.22
7 0.11 0.11 0.11 0.11 0.22 0.22 0.11 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.33 0.22 0.11 -0.11 0.00 0.11 0.11 0.22 0.11 0.22 0.11
8 0.12 0.12 0.00 0.12 0.12 0.12 0.22 0.24 0.36 0.24 0.12 0.24 0.24 0.24 0.24 0.12 0.12 0.24 0.12 0.24 0.24 0.12 0.12 0.00 0.00 0.12
9 0.10 0.10 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.10 0.20 0.30 0.20 0.10 0.20 0.20 0.10 0.00 0.20 0.20 0.20 0.20 0.20 0.20 0.10
Total 1.00 1.68 1.33 1.34 1.31 2 1.76 1.9 2.25 2 1.22 2.03 2.21 1.67 2.04 1.99 1.21 1.79 0.81 1.13 1.91 1.45 1.67 1.31 1.44 1.46
Table 2.7b2: Group 2 Output
PROJECT NUMBER
GOAL WEIGHT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 20 21 22 23 24 25 26 27 28
1 0.07 0.07 0.07 -0.07 0.00 0.21 0.07 0.21 0.14 0.07 0.07 0.07 0.14 0.07 0.21 0.14 0.00 0.21 0.07 0.00 0.07 0.14 0.07 0.00 0.14 0.21 0.07
2 0.16 0.16 0.48 -0.16 0.48 0.32 0.32 0.16 0.48 0.16 0.32 0.48 0.32 0.16 0.48 0.48 0.48 0.32 0.16 0.32 0.16 0.48 0.48 0.48 0.48 0.48 0.32
3 0.12 0.24 0.36 -0.12 0.12 0.12 0.36 0.24 0.12 0.12 0.12 0.24 0.12 0.12 0.36 0.12 0.12 0.24 0.12 0.24 0.12 0.12 0.36 0.24 0.36 0.36 0.24
4 0.06 0.12 0.18 0.06 0.06 0.12 0.12 0.00 0.06 0.06 0.12 0.06 0.06 0.06 0.18 0.12 0.06 0.12 0.06 0.00 0.06 0.12 0.06 0.06 0.12 0.18 0.06
5 0.19 0.57 0.57 0.19 0.19 0.00 0.19 0.00 0.57 0.00 0.19 0.19 0.38 0.19 0.57 0.19 0.19 0.38 0.19 0.00 0.57 0.19 0.19 0.19 0.38 0.57 0.57
6 0.18 0.18 0.54 0.18 0.36 0.54 0.36 0.18 0.36 0.54 0.54 0.54 0.36 0.36 0.54 0.54 0.18 0.36 0.18 0.38 0.54 0.54 0.54 0.36 0.36 0.54 0.54
7 0.04 0.04 0.12 0.04 0.04 0.08 0.00 0.08 0.12 0.04 0.12 0.04 0.08 0.04 0.08 0.12 0.04 0.08 0.04 0.04 0.00 0.04 0.04 0.04 0.04 0.08 0.04
8 0.15 0.30 0.30 0.00 0.00 0.00 0.15 0.15 0.45 0.15 0.00 0.15 0.30 0.15 0.45 0.00 0.00 0.30 0.15 0.30 0.00 0.15 0.15 0.15 0.15 0.45 0.45
9 0.03 0.09 0.09 0.03 0.06 0.03 0.09 0.09 0.03 0.03 0.06 0.09 0.60 0.06 0.09 0.06 0.09 0.06 0.03 0.09 0.03 0.06 0.06 0.03 0.09 0.09 0.09
Total 1.00 1.77 2.71 0.15 1.31 1.42 1.66 1.11 2.33 1.17 1.54 1.86 2.36 1.21 2.96 1.77 1.16 2.07 1 1.37 1.55 1.84 1.95 1.55 2.12 2.96 2.38
 Table 2.7c: Example of Ranked List of Projects with Cost Estimates

Cost Estimate (Pesos)

Rank Project Title Type Sector
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 Soft Economic 4,000,000 917,900,000
and Promotion
5 Transportation and Traffic Management Plan Soft Land Use & 940,000 918,840,000
for Dagupan City Infrastructure
6 River Study Project Hard Environment 2,000,000 920,840,000
7 Malimgas Tan Marakep Ya Ilog (Pantal Riverside Hard Land Use & 8,606,000 929,446,000
Redevelopment) Infrastructure
8 Urban Green Space Enhancement & Rehabilitation Hard Environment 5,300,000 934,746,000
of Dagupan City
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- Hard Land Use & 104,580,000 1,068,039,000
sale Fish Trading Center) Infrastructure
146 13 Information & Education Campaign on the CLUP/ Soft Institutional 500,000 1,068,539,000
Zoning Ordinance
13 Redevelopment of Tondaligan People's Park Hard Land Use & 17,900,000 1,086,439,000
Infrastructure
15 Abong Ko Lusek Ko (My Home, My Pillar ): A Soft Social 1,700,000 1,088,139,000
Comprehensive Concrete Values Training Program
16 Comprehensive Urban Disaster Preparedness and Soft Environment 6,500,000 1,094,639,000
Management Plan
17 CBD Sidewalk Recovery and Improvement Hard Land Use & 8,700,000 1,103,339,000
Infrastructure
18 Skills Training for Trading, Services and Livelihood Soft Economic 1,200,000 1,104,539,000
Opportunities
19 Water Quality Monitoring and Assessment in Soft Environment 2,000,000 1,106,539,000
Dagupan City
20 Market Expansion Project Hard Institutional 505,000,000 1,611,539,000
21 Upgrading of Water Transport Facilities Hard Land Use & 2,400,000 1,613,939,000
Infrastructure
22 Construction and Rehabilitation of Drainage Sys- Hard Land Use & 1,200,000 1,615,139,000
tem along Don Jose Calimlim Street, Pogo Chico Infrastructure
23 Modern Slaughterhouse Hard Institutional 24,000,000 1,639,139,000
24 Bulilit Ko Pan-Aralen Ko: A Pre-School Education Soft Social 2,190,000 1,641,329,000
Access Program
25 Development of an Information System on Estab- Soft Economic 1,500,000 1,642,829,000
lishments
26 MIS for Zoning and Tax Mapping Project Soft Institutional 2,570,000 1,645,399,000
Source: Dagupan City LDIP (2003-2005)
Annex 2.8
SAMPLE RESOLUTION ADOPTING THE EXECUTIVE LEGISLATIVE AGENDA

RESOLUTION NO. ____, Series of ___

ADOPTING THE EXECUTIVE AND LEGISLATIVE AGENDA OF THE

CITY / 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 identification 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 147
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 Officer

SB/ P Member SB/ P Member SB/ P Member

SB/ P Member SB/ P Member SB/ P Member

APPROVED:
__________________________________
Municipal/ City Mayor
 Annex 2.9
MAINSTREAMING PEACE AND CONFLICT IMPACT ASSESSMENT
IN LOCAL DEVELOPMENT PLANNING (LDP) AND BUDGET
PREPARATION (BP)

WHO
LDP PROCESS WHO WILL
PCIA STEPS WILL KEY QUESTIONS
& BP FACILITATE
PARTICIPATE
1. Situation - Assessing MDC (Municipal MDC (Municipal - What are the types of conflict
analysis: the conflict Development Development & stages of the conflict being
- conflict environment Council) Council) experienced in the area?
analysis
- 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-
efits being done?

- Is there a conflict manage-

ment and conflict resolution
mechanism in place?
148
2. Planning- ROA (what MDC (Municipal MDC (Municipal Location
identify key is- are risks or Development Development - What are the possible im-
sues & priority opportunities Council) Council) pacts of the location on the
projects existing in the proposed projects?
environ)
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 conflict 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)
 WHO
LDP PROCESS WHO WILL
PCIA STEPS WILL KEY QUESTIONS
& BP FACILITATE
PARTICIPATE
3. Plan & bud- Peace & Con- MDC (Municipal MDC (Municipal Key questions in relation to the
get approval flict Impact Development Development different impact areas:
Assessment Council) Council) Conflict Management Capaci-
a. finalization (on the differ- ties:
of priority ent area per - Will the PP provide opportuni-
projects w/ poject) ties for individuals / groups to
budget by get involved in responding to
MDC peace building efforts?
b. submission
to legislative
body
c. approval by
Sanggunian
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? 149
- How can benefits 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?
 Annex 3.0
CRITERIA FOR ROLL-UP OF PROVINCIAL INVESTMENT PROGRAM
TO THE REGIONAL DEVELOPMENT INVESTMENT PROGRAM

MAX DETAILED
NO CRITERIA
SCORE 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
150
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. 5
LGPMS
2. Annual infra projects (high, high) 5
3. ODA projects implementation 9high, high) 5

Legend
* Choose only one answer
** Answer all itmes
Poverty incidence-the higher the poverty incidence of the province, the higher the score
MDG Status – the lower the achievement level, the higher the score

RPFP Strategies
Mainland – 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, SK
Island Provinces –Tri polar strategy (PIEs at Jolo, Sulu; Lamitan, Basilan; and Bongao, Tawi-Tawi

RDP Spatial Framework

Maguindanao/S. Kab. – Showcase of Diversified Agriculture; Lanao Sur – Home of the Lake, hydro power in Mindanao
Sulu- Exotic crops capital of ARMM; Tawi-Tawi – ASEAN’s Best: Gateway to EAGA
Basilan/ 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 Study
LGU readiness –the presence of functional performance management system such as LGPMS gets higher score
Annual infra projects – good performance entails higher score
ODA projects implementation- good performance entails higher score
References
ARMM Regional Executive Agenda and Development Investment program (2006-2008),
Regional Planning and Development Office

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 151
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