Japan-ADB provides fund to Philippines' local govt units
18 Dec '07
3 min read
Japan and the Asian Development Bank (ADB) are providing $300.8 million to improve the revenue generation capacity of local government units in the Philippines to help them deliver better basic services to their communities.
The Local Government Financing and Budget Reform Program Cluster consists of two subprograms, with the first receiving a $300 million loan from the ADB. The second subprogram will be submitted for consideration to the ADB Board 36 months after the first subprogram takes effect.
The Japan Special Fund will provide an $800,000 grant for the technical assistance component of the program, which has an estimated total cost of $1.1 million. The technical assistance will support the development and implementation of a medium-term agenda in local government financing and governance and provide the government policy advice.
“The program supports the Philippines in its efforts to help local government units improve their capacity to plan and budget for the general welfare of their communities in a transparent way,” said Tariq Niazi, Public Sector Management Specialist of ADB's Southeast Asia Department.
“It contributes to increased efficiency and effectiveness in the delivery of basic public services by increasing resources and funding options for local government units.”
The Local Government Code of the Philippines, which was signed into law in 1991, transferred the main responsibility for the delivery of basic services such as health, education and infrastructure to local government units.
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