REPUBLIC OF THE PHILIPPINES

Department of the Interior and Local Government

Project Completion Report

of

Bottom-up Budgeting
Other Infrastructure Program
(FY 2013)

29 May 2018

TABLE OF CONTENTS
 Page

MAP 1:PROVINCIAL MAP ii

MAP 2: iii

BASIC DATA iv

I. PROJECT DESCRIPTION

A. Rationale 1
B. Objectives, Rationale and Scope 1
C. Implementation Arrangements 1

II. EVALUATION OF IMPLEMENTATION

A. Project Components 3
B. Project Costs 6
C. Project Implementation Schedule 7
D. Engagement of Consultant and Procurement of
Good and Services 8
E. Performance of Consultants, Contractors, and Suppliers 9
F. Compliance with Loan Covenants 10
G. Disbursements 10
H. Environmental Impact 10
I. Project Benefits 11
J. Performance of the Borrower, Executing Agency and
Implementation Agencies 12

III. LESSON LEARNED

A. Conclusions 15
B. Recommendations 16

IV. APPENDICES 17

PROJECT COMPLETION REPORT

BOTTOM-UP BUDGETING 2013
DRROI-PMO
SECTOR : BUB Others
LOCATION : Regions V, VII, VIII, XII, and NCR
EXECUTING AGENCY : Department of Interior and Local Government
IMPLEMENTING UNIT : LGU
FUNDING YEAR : FY 2013
SOURCE/NUMBER : SARO-BMB-D-14-0006008

BASIC DATA Project Proposal PCR

TOTAL COST (M) PHP 33.448 PHP 32.67
Subsidy to LGUs PHP 2,413.49 PHP 2,256.21
M & E/Cap. Dev. PHP 71.28 PHP 29.08
Cost Overrun (Underrun)

IMPLEMENTATION SCHEDULE
Duration of Implementation 2013 - 2016
Time Overrun and (Underrun) 1 year

Funding Year 2013 2014 2015 2016 2017 2018

Plan
2013 Actual

OVERALL ASSESSMENT:

I. PROJECT DESCRIPTION

A. Rationale

The National Government, as pronounced in the Philippine Development Plan for 2011-
2016, shall pursue the Millennium Development Goal of reducing poverty in the country
from 26.50% in 2009 to 16.6% by 2015, along with Climate Change Adaptation/Mitigation
and Disaster Preparedness, Job Generation and Inclusive Local Economic Development.
The Bottom-up Budgeting (BuB) was introduced in FY 2012 as a strategy of converging
programs of National Government Agencies (NGAs) focusing on the needs of the
communities and the delivery of basic services by Local Government Units (LGUs). Local
Poverty Reduction Action Teams (LPRATs) were created in the original 609 priority cities
and municipalities.

Local governments confront rising public expectations regarding the delivery of services.
Despite two decades of implementation of Republic Act (RA) No. 7160 (Local Government
Code of 1991), local governments still face the various challenges in the exercise of their
devolved service delivery functions. Foremost among these is the raising of sufficient funds
for local development.

Cognizant of the need to provide further support to the LGUs to enable them to fully carry
out functions devolved to them while at the same time, building their capacity towards
genuine fiscal autonomy, the National Government has scaled up its efforts to ensure
meaningful devolution.

To date, the Department of the Interior and Local Government (DILG), as one of the
oversight and the participating National Government Agencies (NGAs) is tasked to ensure
the implementation of priority poverty reduction projects as identified at the city/municipal
level through the BuB participatory planning and budgeting process.

 FY 2013 – the BUB— Other Infrastructure Project covered the implementation

evacuation centers, rescue or Disaster-Risk Reduction (DRR) equipment,
institutional facilities, and activities relative to capacity development. A total of 17
 subprojects (1 cancelled) in 18 municipalities were allocated with PhP 33.448M
under RA 10352, also known as the FY 2013 General Appropriations Act (GAA).

B. Objectives

The BuB— Other Infrastructure Program aims to contribute to the attainment of reducing
poverty by achieving the following:

 Improved capacity of recipient LGU to become DRRM-resilient;

 Better provision of the necessary interventions that guarantee inclusive growth of
the communities; and
 Enhance capacities of communities to address poverty issues.

C. Scope

 Project Coverage

The main beneficiaries of the Program are 17 LGUs (10 Provinces, 6 Cities, 11
Municipalities) in 5 Regions in the Philippines, namely: NCR, Regions V, VII, VIII, and XII.

 Project Component

The BuB— Other Infrastructure DILG Fund (FY 2013) involves several types of projects
such as: institutional facility, capacity development programs, evacuation centers, and
DRR/rescue equipment.

II. EVALUATION OF IMPLEMENTATION

A. Physical Accomplishment

Table 1. BuB-Others FY 2013 Project Implementation Status

APPROVE
UNDER D ON-
PARTICULAR PROC. COMPLETED
PREP. FS/POW or GOING
DED PREP.
2013 BuB
Other
0 0 0 0 17
Infrastructure
Water 0 0 4 11 663

TOTAL 0 0 4 11 680

The FY 2013 Bottom-Up Budgeting Program has a total of 695 subprojects with 680
completed subprojects, having a completion rate of 97.84% and a delivery rate of 100%.
Four (4) subprojects or 0.57% are under procurement and eleven (11) or 1.58% are still on-
going.

B. Project Costs

Table 2. BuB-Others FY 2013 Project Allocation

 Original
Original Revised Revised Allocation
PROJECT/ Allocation Cancelled
PROGRAM Projects
No. of (in million No. of
(in million pesos)
Subprojects pesos) Subprojects
Institutional
Facilities
8 10.00 0 8 10.00
CapDev 5 5.22 0 4 4.46
Evacuation
Center
1 10.00 0 1 10.00
DRR/Rescue
Equipment
4 8.20 0 4 8.20

Total 18 33.44 1 17 32.67

A Special Allotment Release Order (SARO) No. SARO-BMB-D-14-0006008 was released,

dated ____ intended for the implementation of several projects of _____

The final cost of the following components amounted to PHP 32.67 Million: (1) PHP 10.026M
for institutional facilities; (2) PHP 4.46M for capacity development programs; (3) PHP 10M
for evacuation centers; and (4) PHP 8.2M for DRR/rescue equipment.

C. Project Implementation
A.
B. Policies/Guidelines

1. Subproject Implementation Arrangement

Recipient LGUs such as municipalities and cities that are assessed to be capable of
implementing their subprojects shall act as the Implementing unit of the same subproject
while the Department of the Interior and Local Government (DILG) shall act as the
oversight agency.

2. Preparation, Submission and Approval of Subprojects

All recipient LGU shall prepare documents such as (a) Program of Works (POWs) following
the DPWH Department Order No. 32, Series 2012; (b)Technical Drawing/Plan and
Specifications; (c) Photos showing the extent of damages; (d) Proposed Construction
Schedule (e) Sanguniang Bayan Resolution authorizing the Local Chief Executive to enter
into a Memorandum of Agreement (MOA) with the DILG Regional Office; (f) Clearance
Certificate from the Office Building Official/ Provincial Engineering Office that the project is
not located in NO BUILD ZONE.

C. Implementation and Internal Operation of Subjects

The targets mentioned in annex ____ was the initial target prepared in FY 2013. The
projection was based on the assumption that there will be a smooth flow in all the Stages in
the implementation of subprojects: i) funds for the Province of Bohol would be disbursed by
the first quarter of FY 2013 to the affected LGUs; ii) LGUs be to commence the
implementation/ construction 3 months after the release of funds; iii) there would be no
failure of bids in the LGU level.

D. Disbursements
Of the total financial subsidy of the PHP 33.448 allocated for the BuB-Others, one (1)
capacity development program in Las Piñas, with an allocation of PHP 756,000 was
cancelled and returned to the DILG Regional Office, which was then reverted to the Bureau
of Treasury. Thus, 32.67M.

Total of the Php____Million for the monitoring and evaluation funds (M&E) that was
released to DILG Regional Office, only Php_____ Million (_____) has been utilized by the
DILG Regional Office in the monitoring of BuB FY 2013 subprojects.

E. Environmental Impact

Scarcity of Construction Materials, most construction materials, were imported from_____.

Awareness of citizens of Bohol and Cebu province the importance of proper construction

F. Project Benefits/Beneficiaries

The implementation of the different project components addressed the objectives of the BEA
Program to normalize the government and economic activities in the affected LGUs. The
immediate benefits derived from the project are as follows:

1. Municipal and Provincial

The construction and rehabilitation 36 bridges in the project area has provided adequate
transportation facilities to the farmers. This enabled them to transport their farm products and
obtain better prices for their produce. The project also created temporary employment to
residents in the project area because contractors were required to use laborers for the
construction works.

2. City/Municipal Buildings
The immediate repair and rehabilitation of the Provincial / City / Municipal
Buildings help the Municipal/City/ Provincial Officials and employees to attend to the
immediate needs of their constituents and better services for their people.

3. Public Markets
Repair and rehabilitation of Public Markets helps the communities in access
to fresh, healthy foods and providing important revenue streams and livelihood to
market vendors.

4. Civic Centers
The immediate repair and rehabilitation of the Civic Centers helps provide
affected people with basic human needs like shelters during calamities and also
used for other socio-economic activities by the Municipalities / Cities.

III. LESSONS LEARNED

Pre-Implementation

1. Participatory planning, implementation, monitoring and evaluation results in smooth

implementation of the project
2. Thorough investigation, review is necessary for the accuracy of the targets in the
project and planning and implemention
3. Very optimistic targeting leads to unachievable targets
4. Poor project quality at entry results in change/ additional in scope contributed in the
 increase of project cost.
5. There is a need for timely organizing of the PMU and hiring of skilled staff to avoid
delay in implementation of the project
6. There is need for skilled staff for the efficient and effective procurement of goods
and services

1. DED Preparation— Slow preparation of DED due to lack of Technical Staff in the LGU
(Municipal Engineer’s Office)
2. Procurement— Political issues, disagreement between Mayors and SB Members, cause
delay of the issuance of SB Resolution authorize the LCE to enter into Memorandum of
Agreement (MOA). One of the factors that delays the implementation of the project after the
bidding is the signing of contract.

Implementation Phase

1. During project implementation, the LGUs usually request for work suspension and time
extension due to unfavorable weather conditions

2. Delayed Procurement for ROA and contractor will result in delayed project
completion and benefits
3. Pro-active project manager leads to coordinated smooth implementation of the
project
4. There is a need for the establishment of steering committee to guide and monitor
the status of the project

1. Unfavorable weather conditions. Although inevitable, unfavourable weather

conditions remain a cause of delay whether during project implementation or
validation.

2. Right-of-Way (ROW) and land ownership issues. Land ownership is an issue

specifically areas affected are residential and/or major utilities.

3. Non-compliance of the Contractor to approved plans and specifications which

attribute to slow movement of project implementation
4. LGUs lack of technical staff Many MLGUs do not have sufficient personnel in the
Municipal Engineer’s Office – oftentimes there is only one ME and one Draftsman
as support staff. This situation hampers the ability of the MLGUs to deliver more
targets, especially LGUs caters to multi-agency targets (i.e. DA, DOH, DepEd Etc.)
5. Inconsistency in progress monitoring during site validation (CO, PO, RO, LGU)
6. Technical Team cannot conduct site validation due to peace and order issue in the
area.
7. Slow issuance of Authority to Purchase from DBM for Rescue Vehicles
8. Poor workmanship to implement the project due to incapability of contractor
Work abandonment by the winning contractor. Some of the winning bidders
abandoned the project due to location which affects the delivery of materials, delay
payment processing and capacity of the contractor e.g. financial, equipment and
manpower.

Post Implementation Phase

1. Allocation

Lessons Learned:

Highly Capacitated MLGUs can Implement Projects Faster.

Technical personnel and officers who have attended series of Capacity Development
engagements tend to be more confident in doing their regular routine and expanding
their capacities. It was observed that some bigger MLGUs with technical personnel and
related offices (like those for Engineering, procurement, and planning as well as local
government) who have attended, and experienced capacity enhancement activities can
implement more projects and are pleased with their achievements.

Support Personnel Provides Bigger Absorptive Capacity in MLGUs.

Many MLGUs do not have sufficient personnel in the Municipal Engineer’s Office –
oftentimes there is only one ME and one Draftsman as support staffs hence, LGUs are
advised to annually propose budget for additional personnel thru MOOE in their Annual
Investment Plan (AIP). This situation hampers the ability of the MLGUs to deliver more
targets.

Technical persons without any support or very few supports in relation to the works at-
hand would feel deluged with many responsibilities and the MLGU would suffer in this
setup. It would be imperative for the MLGUs to do concrete action to solve this situation.

Sticking to the timeline keeps the MLGU focused on the highlights or milestones in
subproject realization from documents preparation to procurement stage to awarding and
mobilization, then to subproject implementation. The Municipal Engineer in particular, or
his support which may be designated as the focal person, must continuously review and
update this timeline if needed. (Updating is necessary especially when there were
failures of bidding or there was inclement weather.) On the other hand, if the focal
person would allow delays to seep in, the targeted milestones would always be missed.

Conduct Pre- Procurement and Pre-Construction Meetings.

This part of the overall project implementation is often overlooked. However, this is an
integral part of the whole process, hence it is important for the MLGU/ any project owner to
hold a Pre- Procurement Meeting. During this meeting, the BAC can ask relevant
questions on the subproject while the implementing unit can present the details, features
and requirements of the subproject along with the timeline, organization and reporting
needs. This meeting clears the issues and concerns in the procurement process.

The Pre- Construction Meeting discusses not only the technical details of the subproject
and relevant details as above but also the payment terms to the Contractor and the
accomplishment reports needed. This meeting provides the venue for all stakeholders to be
present and ask questions and seek commitments for their group’s benefit. With the
conduct of these meetings, the chances of successful implementation are assured.

Always Bring Pertinent Documents During Site Inspection.

The technical personnel must always bring the POWs, cost estimates, plans and relevant
documents on the subproject in order to have bases for determining percentage
accomplishment, included or excluded activities, quantities of materials delivered or
installed and dimensions (height, depth, thickness, etc.) among other data to be verified.
The inverse of this statement is also true. If those documents were not brought to the field,
monitoring and assessment of progress would just depend on the Contractor or his
representative. Prior to monitoring, these pertinent documents are already being requested
for LGUs to prepare especially for projects funded under LGSF since LGUs are not
required to submit project documents to DILG, but should be readily available at the LGUs.
For BuB Regular, these pertinent documents are available at the DILG Field Offices.

IV. CONCLUSIONS AND RECOMMENDATIONS

A. Conclusions
The Project was completed a year after the supposed target delivery to the beneficiaries,
although after the initial year of the project implementation, the government operation of
the local government unit (LGU) that have suffer the devastating effect of the 7.4
Magnitude earthquake that struck the Province of Bohol and Cebu on 15 October 2013
have already gone back to normal by completing most of the vital infrastructure that was
also funded by the program. Therefore the project is relevant and have meet the objective
of the program.

The Project is relevant to the LGUs affected by the 7.2 magnitude earthquake

B. Recommendations

A set of recommendations were arrived at as follows, For Action by Government/ Executing

Agencies:
1. In line with the computerized reporting system, OPDS has developed a
Responsibility Matrix which will define the action to be taken by all DILG Offices on
the “projects at risk” identified in the computerized reporting system;
2. the attention of concerned Local Chief Executives (LCEs) are immediately called
though letter directing the Municipal Mayors to fast track the implementation;
3. conduct of regular monthly meeting of the municipal engineers and weekly meeting
of the Provincial Project Monitoring Team (PPMT) to resolve project issues;
4. conduct of quarterly consultative meeting with Municipal Mayors;
5. conduct of regular site inspection with DILG-Bohol Provincial Director;
6. conduct of regular site monitoring of the ongoing project by the BEA-hired
Engineers, Provincial Engineers Office (PEO) and Provincial Government of Bohol;
7. enhance commitment of LGUs on the actions to be taken regarding the report of
findings, observations and recommendation;
8. deploy BEA-hired Engineers for the preparation of POWs and other documents in
the LGU;
9. SILG to issue letter to poor performing LGUs and to fastrack implementation of the
Project and to immediately liquidate the utilized fund of the LGU for the subproject;
10. deployment of Financial Analyst to Province of Bohol to facilitate and expedite the
liquidation of the LGUs to regional office; and
11. sending letter signed by DILG Secretary directly to LGUs reminding their
unliquidated funds and to fast track the uncompleted Subprojects.

LIST OF APENDICES

PHOTO DOCUMENTATIONS