Transcript NCDDP Module 3_Grants and LCC 2

KCNCDD Community
Grants and LCC
Overview
Project Financing, in Pesos
COMPONENTS
COMMUNITY GRANTS*
TECHNICAL SUPPORT
PROJ MANAGEMENT AND
M/E
TOTAL
WB
ADB
GOP
TOTAL
16,157,819,814
14,583,288,236
2,594,522,530 33,335,630,580
2,741,973,837
220,225,500
5,362,338,132
8,324,537,469
547,606,347
303,904,404
1,432,658,076
2,284,168,827
19,447,399,998
15,107,418,140
9,389,518,738 43,944,336,876
Computation of Community Grants
 Background
 All Yolanda-affected municipalities that are part of the original list of 670 (377munis)
shall be entitled to 4 cycles to be implemented in 3 years
 Year 1 - will combine the allocations for cycles 1 and 2
 Year 2 – cycle 3 allocation
 Year 3 – cycle 4 allocation
 All Yolanda-affected municipalities that are NOT part of the original list of 670
(177munis) shall be entitled to 1 cycle only but with premium:
 munis within the 100-km path (59 munis) = 60% premium or equivalent to 160%
 munis outside the 100-km path (118 munis) = 30% premium or equivalent to 130%
 Non-Yolanda areas (293 munis) shall be allowed to complete 4 cycles of KC
cumulative from KC1, KCAF and KCMCC
 Therefore, munis that have completed 4 cycles prior to KCNCDDP (32munis) will no longer be
provided with community investment grants.
What do we need to know to compute the MGA?
1. Group
 377 munis
 177 munis (within 100-km path; outside 100 km path)
 293 munis (continuing 0; continuing1; continuing2; continuing3; incoming)
2. Income class
 1st to 3rd class
 4th to 6th class
3. Poverty Incidence
 Above 50%
 40% to 50%
 Below 40%
4. Population
How to compute the MGA?
 Formula
MGA per cycle = Allocation per head x population
but not lower than P2,000,000 and not higher than P20,000,000
 How much is allocation per head?
Municipal Class
1st to 3rd class
4th to 6th class
Poverty
Incidence
Allocation per
head
Above 50%
P400
40-50%
P350
Below 40%
P300
Above 50%
P500
40-50%
P450
Below 40%
P400
Sample computation 1
 Municipality of TORRIJOS, MARINDUQUE (continuing and Yolanda-affected)
 Givens:
 Group 377
 3rd class municipality
 Poverty incidence is 35.16 %
 Population of 29,366
 Formula: Allocation/head x population = MGA per cycle
 P300 x 29,366 = P 8,809,800.00 per cycle or a total of 17,619,600.00
o Year 1 = P 8,809,800.00 x 2 = P 17,619,600.00
o Year 2 = P 8,809,800.00
o Year 3 = P 8,809,800.00
Sample computation 2
 Municipality of Odiongan, Romblon(Incoming and Yolandaaffected)
 Givens:
 Group 177 (outside the 100-km path)
 2nd class municipality
 Poverty incidence is 35.89 %
 Population of 43,676
 Formula: P300 x 43,676 = P 13,102,800 ; MGA per cycle- P17,033,640.00
Cycle 1/year 1 = P 13,102,800 x 130% = P 17,033,640.00
Sample computation 3
 Municipality of BANTON, ROMBLON (MCC-Random, has completed 3 cycles and
non-Yolanda)
 Given:
 Group 293
 5th class municipality
 Poverty incidence is 37.97 %
 Population of 5,963
 Formula: P400 x 5,963 = P 2,385,200.00 ;
 Year 1/ cycle 4 = P2,385,200.00
Local Counterpart Contribution
 KCNCDDP LCC as approved by NEDA: 30% of Total KCNCDDP funding
 GPBP implementation also requires LCC
 DBM and DSWD agreed to harmonize the LCC requirements of
KCNCDDP and GPBP, hence, the LCC FAQs during the LGU Forum.
 GPBP 2014 implementation LCC per DBM National Budget
Memorandum No. 121 dated Mar 18, 2014:
LGU CLASS
LCC for GPBP
Highly Urbanized cities
30% of Project Cost
All other cities
20% of Project Cost
1st to 3rd class
15% of Project Cost
4th to 6th class
5% of Project Cost
How to harmonize the KCNCDDP LCC with the GPBP?
 Follow GPBP provisions
 Write NEDA on the implication of the GPBP LCC requirement ASAP for notation
LCC FAQs
 Is the LGU required to provide LCC?
 Yes.
 How much is LCC?
 293 municipalities
 For subproject implementation
 1st to 3rd class – 15% of KCNCDDP Funding
 4th to 6th class – 5% of KCNCDDP Funding
 For Technical Support
 LGU organic counterpart staff, office space, office furniture and equipment, computer,
venue for related activities etc.
 554 Yolanda-affected municipalities
 For technical support only: counterpart staff, office space, office furniture and
equipment, computer, venue for related activities etc.
 Is the above LCC applicable from year 1 until the completion of KCNCDDP?
 No. The above LCC will be applied in Year 1 only.
LCC FAQs cont’d..
 How much is LCC from 2nd year onwards?
 It shall be computed based on the combined cost of KCNCDDP and GPBP funding for the year.
Total amount of KCNCDDP
and GPBP funding
Required LCC
Up to 100% of the LDF
10% of the LDF
Over 100% up to 150% of the LDF
15% of the LDF
Over 150% of the LDF
20% of the LDF
 Like the 1st year, is the above percentage for SPI only?
 No. The above LCC percentage is for SPI and Technical Support combined.
 Is the above percentage applicable to all municipalities including Yolanda-affected from 2nd year onwards?
 Yes.
LCC FAQs cont’d..
 Is cash LCC required?
 No. LCC can either be cash or in-kind.
 If LCC is cash, where will it be deposited?
 Cash LCC, if any, shall be deposited to the community account opened by the
communities as depository of the KCNCDDP.
 Can LCC cash be used by the LGU to hire staff for subproject implementation?
 Yes.
 Will the LCC be computed on a per subproject basis?
 No. LCC will be computed based on total Municipal Grants Allocation.
LCC FAQs cont’d..
 What can be considered as LCC?
1. Materials and labor for the implementation of the KCNCDDP approved
subproject;
2. Capability Building and Implementation Support costs such as but not
limited to:
 Cost of LGU counterpart staff dedicated for the implementation KCNCDDP;
 Cost of other activities related to the implementation of KCNCDDP such as,
but not limited to:
 social preparations,
 trainings/workshops and conferences, coordination meetings including venues,
 office space and other logistical requirements for DSWD staff assigned in the area.
LCC FAQs cont’d..
3. LGU-LDF funded projects indicated in the approved Local Poverty
Reduction Action Plan (LPRAP):
 Provided said projects have not been committed as counterpart of the LGU for
other National Government Projects.
 What if the cost of the LDF-funded project of the LGU is equivalent to more than the required
percentage of LCC requirement?
 Answer: The KCNCDDP will count as LCC the amount equivalent to the required
percentage only.
 Can the LGU then commit the remaining amount as LCC for other NG projects?
 Answer: Yes.
 Provided further that the implementation of said projects shall coincide with the
implementation of the KCNCCDP approved subprojects;
 Can the LGU project funded from the previous year LDF be allowed as LCC?
 Answer: Yes, for as long as the said project is simultaneously implemented with the
KCNCDDP approved SP.