LGU programs hampered by lack of funds, planning

Lack of planning and funding hampers the effectiveness of programs by local government units (LGUs), a review of the overseas development assistance (ODA) portfolio extended by the World Bank to the Philippines showed. Based on the review made by the Washington-based lender and the National Economic and Development Authority (NEDA), many LGUs have been able to provide much-needed infrastructure like good roads, better classrooms and electricity as well as livelihood to their constituents despite limited resources. However, the lack of coordination at different levels tend to fragment development planning among neighboring LGUs. In most cases result, it results to each LGU pursuing strategies that needlessly compete with its neighbors. "A provincial development strategy could help address key issues in governance, capacity, and coordination and provides an integrated and comprehensive approach to local governance," World Bank Acting Country Director Maryse Gautier said. Specifically, such a strategy could ensure effective coordination among towns and cities, avoid duplication of programs and projects, and speed up delivery of much needed and timely services to the poor. The portfolio review also showed that many LGUs are constrained by limited financial resources to pursue development programs and projects. One of the recommendations to address this problem is to create clusters of LGUs to make them more capable of accessing financing for big projects such as wastewater treatment facilities and sanitary landfill. For example, 13 LGUs formed the Metro Naga Development Council to share resources and promote Naga City as an investment hub. Bigger and working together, clusters can then access financing programs like that of the Laguna Lake Development Authority's for building common landfills. Also, the Department of Health has formed health zones where groups of LGUs share a common catchment area and administration costs. Gautier said the World Bank is now in the process of developing a project that will provide assistance to LGU integrated approaches, including clustering arrangements. Among the recommendations discussed also include innovative ways to improve access by LGUs to capacity building, good governance, and institutional strengthening programs. Results also indicated that 10 out of the World Bank's 27 active projects as of 2008 support LGUs and communities either through financing, capacity building, and technical assistance. These projects represent $458 million, or a third of its total commitments. The review wrap-up was participated in by representatives from government agencies from NEDA, Department of Interior and Local Government, Department of Finance, Department of Health, Department of Public Works and Highways, Laguna Lake Development Authority, Department of Agriculture, Department of Energy, Department of Budget and Management, among others. It also included government financial institutions such as Development Bank of the Philippines and Land Bank of the Philippines, and donor institutions such as the Asian Development Bank, Japan International Cooperation Agency, and the World Bank. NEDA Director for Project Monitoring Roderick Planta disclosed that the government is adopting measures like speeding up project approvals, procurement and relocation in assisted LGUs. He said the government has decided to frontload 60 percent to 80 percent of its 2009 budget during the first half of the year, as agreed upon under the government's Economic Resiliency Plan. -GMANews.TV