RP eyes foreign donors for dev’t projects of poor LGUs

The Philippines has started a foreign donor pledging session to raise funds for the country’s “poor” local government units (LGUs). 

Acting Socioeconomic Planning Secretary Augusto B. Santos said the donor community could contribute to the Project Development and Monitoring Fund (PDMF) designed to finance  the development projects of low-income LGUs. 

“I exhort our friends from the donor community to contribute to the PDMF. I assure you that your contributions will be utilized efficiently,” Santos said.  

He said there are many ideas waiting to be concretized into project proposals which could be translated into actual services, facilities, or small infrastructure for the LGUs.

The PDMF, created through the Official Development Assistance (ODA) Law of 1996, states that the National Economic and Development Authority (NEDA) can raise funds from donor countries. It, however, must comprise five percent of the total ODA loans from the immediately preceding year. 

Through this fund, the technical capability of LGUs in preparing project proposals is enhanced to facilitate their access to sources of funds for project implementation. The technical assistance to LGUs is undertaken by NEDA through its regional offices in line with its role of promoting development in the regions.  

So far, the Spanish, Japanese and New Zealand governments have contributed to the PDMF.  

The Spanish government gave its first contribution amounting to P7.04 million in 1997 which was used in conducting output-based training programs that produced various LGU project proposals. 

This was followed by a P33-million donation of the Japanese government, through the Kennedy Round 2 (KR2) program for the formulation of pre-investment studies, master plans, and capability building programs for LGUs.  

The New Zealand government contributed P2.09 million for technical assistance activities in the Cordillera Administrative Region (CAR) and in Region 2.  

“Through these fund facilities, NEDA has been able to assist LGUs and regional bodies in identifying and implementing important projects that help improve local  conditions. Many of these projects do not cost much but have had major impacts in their communities,” Santos said.