Department of Social Welfare and Development (DSWD) Kalahi-CIDSS Additional Financing Project

FOURTH QUARTER 2013 PROJECT ACCOMPLISHMENT REPORT1

I. Project Reach to Date

The Additional Financing is an expansion project of the original KC, covering in three (3) years a total of 183 municipalities composed of new and previously covered municipalities that are located in 27 of the original 42 KC provinces. Municipalities that have already undergone 3 cycles of KC are implementing the Makamasang Tugon (MT) approach, an LGU-led implementation of the Project. KCAF is also covering four (4) urban areas (one in Luzon and Visayas and 2 in Mindanao) to pilot an Urban KC Model.

To date, the Project has already covered 4,058 barangays in 176 municipalities located in the 27 poorest provinces. The distribution of Project areas by phase and the number of municipalities and barangays covered are shown in Table 1 below.

Table 1. KCAF Area Coverage by Phase Phase Duration Municipalities No. of Barangays Cycle 1

1st Batch of New Aug 2010-Jul 2011 14 258 Municipalities Cycle 2

Sept 2011-Oct 2012 1st Batch of Makamasang Tugon Aug 2010-Jul 2011 25 521 Municipalities 2nd Batch of Makamasang Tugon Jul 2011-Jul 2012 68 1,672 Municipalities KC1 Expansion Cycle 2 14 312 Municipalities Jun 2011-Jun 2012 New Randomly Cycle 1 Selected 37 928 April 2012-April 2013 Municipalities New Guaranteed Cycle 1 18 367 Municipalities April 2012-April 2013

Total 176 4,058

 1st Batch of New Municipalities: Toboso, Negros Occidental did not implement cycle 2.  2nd Batch of MT Municipalities: Unique count of municipalities; three (3) of which were already covered in the 1st batch MT that implemented in 2010 (Mulanay, Quezon; Bacolod, Lanao del Norte and Jabonga, Agusan del Norte). While , del Norte and Munai, Lanao del Norte did not implement MT.  KC1 Expansion Municipalities: Besao, Mountain Province is implementing cycle 2 under KC Millennium Challenge Corporation, while Bonifacio, Misamis Occidental waived for cycle 2 implementation. In addition, Leon Postigo and Kapatagan are currently in their cycle 3 implementation.

1 Cumulative progress as of December 2013.

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 New Randomly Selected Municipalities: Implementation was pulled out in three (3) municipalities because the LGU failed to deliver committed LCC. Pres. Manuel Roxas (31), (28), and (34) were replaced by Kumalarang (18), Josefina (14), and Kabasalan (29), respectively. In addition, the Municipality of Pantao Ragat in Lanao del Norte did not continue after completing social preparation activities since the LGU cannot provide the required LCC.  New Guaranteed Municipalities: Candoni, Negros Occidental waived.

II. Implementation Progress per KC Project Component

2.1 Social Preparation, Capacity Building and Implementation Support Activities

2.1.1 Status of CEAC Implementation by Phase

Below is a summary of the project’s implementation status in current areas along the Community Empowerment Activity Cycle (CEAC).

Table 2. CEAC Implementation Status in the Current Areas CEAC Milestones Phase No. of Social Project Project Sub-Project Munis Preparation Identification & Prioritization Implementation/ Development and Approval Transition 1st Batch of New 14 14 14 13 13 Municipalities (C2) KC1 Expansion 14 14 14 14 14 Municipalities (C2) KC1 Expansion 2 2 2 2 2 Municipalities (C3) 2nd Batch of MT 71 71 71 71 71 New Guaranteed 18 18 18 18 17 New Random 37 37 37 37 37

For the first batch of new municipalities undertaking cycle 2, all municipalities have completed sub- project implementation except for Toboso, Negros Occidental. After completing project identification and development stage, implementation was pulled out due to the poor performance of LGU.

Cycle 2 implementation of the 14 KC1 expansion municipalities is completed. The municipality of Leon Postigo in and Kapatagan in Lanao del Norte also implemented cycle 3. By the end of December 2013, Kapatagan has completed the cycle, while Leon Postigo is still completing eight (8) community sub-projects.

Under Makamasang Tugon, 58 of the 71 municipalities have completed sub-project implementation and end-of-cycle activities. The remaining municipalities are completing a total of 86 community sub- projects.

Of the total 55 new random and guaranteed municipalities, 32 have completed the cycle while 22 are still implementing their sub-projects. The Municipality of Pantao Ragat waived its implementation after completing social preparation activities since the LGU cannot provide the required LCC for sub- projects.

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2.1.2 Participation of community members in KC implementation

Social preparation activities in communities are reported to have high representation among households; 75% of households participated in different KC assemblies. High participation from women was also observed at 59%. Throughout the CEAC process, various capability building activities and technical assistances are provided to communities to strengthen their capacities in identifying and implementing local solutions to poverty issues. To date, the Project has mobilized and trained a total of 110,729 community volunteers and Municipal/Barangay Local Government Units (M/BLGUs). Of the total, 56% are women and 44% are men.

In addition, the Project has also provided short-term employment to a total of 48,045 individuals, or equivalent to PhP 176.813 Million worth of labor.

Table 3. Community Participation HH Women Men Participation Barangay Assemblies 75% 59% 41% Community Volunteers 62,074 48,655

Trained (56%) (44%) KC Organized Committees Membership 50,844 37,664

(57%) (43%) Leadership 11,230 10,991

(51%) (49%) Employment (During SPI) Workers 2,888 45,157

(6%) (94%) Labor Cost PhP 6.205 M PhP 170.607 M

(4%) (96%)

2.2 Provision of Grants for Community Implementation of Sub-Projects

For the 4th quarter, 45 community sub-projects were prioritized amounting to PhP 53.209 Million. This brings the total number of funded community sub-project to 2,320 with an estimated total project cost of PhP 2.655 Billion that will benefit approximately 573,105 households in 2,380 barangays.

2.2.1 Sub-projects (types) funded in response to community prioritized needs

Below are the major sub-project types funded and the percentages of the total KCAF grant allocated on each type:  Basic social services: community water systems, school buildings, day care centers, barangay health stations, electrification, and tribal housing/shelter (48.22%);  Basic access infrastructure: access roads, small bridges/footbridges and access trails (34.43%);  Community production, economic support and common services facilities: community economic enterprise training, equipment and materials support sub-projects, pre- and post-harvest and multi-purpose facilities, and small scale irrigation (5.01%);  Environmental protection and conservation: drainage, river/flood control, sea wall, artificial coral reef sanctuary and sanitation facilities (12.29%); and Others (0.04%)

A breakdown of the community sub-projects funded and completed by type is provided in Annex 1 and 2 attached to this Report.

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Figure 1. Distribution of Community Sub-Projects Funded By Type

2.2.2 Status of community sub-projects funded

In the same period, a total of 115 community sub-projects were completed amounting to PhP 166.479 Million. To date, 2,050 or 88% of the total funded sub-projects are already completed, amounting to PhP 2.317 Billion, benefiting approximately 508,604 households in 2,108 barangays.

Table 4. Community Sub-Project Implementation by Phase Funded Completed On-going Phase SPs Brgys HH SPs Brgys HH SPs Brgys HH Beneficiaries Beneficiaries Beneficiaries 1st Batch of New 119 124 34,343 119 124 34,343 0 0 0 Munis (C1) 1st Batch of New 112 112 29,893 112 112 29,893 0 0 0 Munis (C2) 1st Batch of New 6 6 2,758 0 0 0 6 6 2,758 Munis (C3) 1st Batch of MT 360 360 74,368 358 358 74,016 2 2 352 2nd Batch of MT 986 1,024 252,248 900 944 230,382 86 80 21,866 KC1 Expansion 118 118 41,746 117 117 41,560 1 1 186 Munis (C2) KC1 Expansion 24 24 7,969 16 16 6,446 8 8 1,523 Munis (C3) New Random 417 429 84,877 318 321 69,244 99 108 15,633 New Guaranteed 150 156 37,849 109 115 22,544 41 41 15,305 Savings 28 27 7,054 1 1 176 27 26 6,878 Total 2,320 2,380 573,105 2,050 2,108 508,604 270 272 64,501

Shown in Table 5 is the physical accomplishment of on-going community sub-projects. Of the total, 45% (122) have 30-89% physical accomplishment. Regional Project Management Offices are directed to complete all on-going community sub-projects by March 2014.

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Table 5. Physical Accomplishment of On-going Community Sub-Projects Phase Total 90%-99% 30-89% Below 30% 1st Batch of New Munis (C1) 0 0 0 0 1st Batch of New Munis (C2) 0 0 0 0 1st Batch of New Munis (C3) 6 0 0 6 1st Batch of MT 2 0 2 0 2nd Batch of MT 86 14 32 40 KC1 Expansion Munis (C2) 1 1 0 0 KC1 Expansion Munis (C3) 8 0 5 3 New Random 99 40 49 10 New Guaranteed 41 10 25 6 Savings 27 6 9 12 Total 270 71 122 77 Percentage 26% 45% 29%

2.2.3 Sub-projects cost sharing from communities and LGUs

Community sub-projects are funded through cost sharing arrangements, community and local government unit (LGU) counterparts, both in cash and in kind, make up for about 21% of the total cost of all funded community projects. To date, the total PhP 2.088 Billion KCAF funding for community sub-projects was matched with PhP 561.019 Million in local counterpart contributions from LGUs and communities.

2.3 Monitoring and Evaluation

By the end of December 2013, the Grievances Redress System has received a total of 1,817 inquiries and grievances, wherein a total of 1,803 or 99% had been satisfactorily resolved.

For the 4th Quarter, the project has reported a total of 11 grievances coming from the municipal, regional and national levels. There are 9 Type A cases or inquiries/comment and 2 Type B or compliance with project processes, MOA and other KC implementation arrangements. There are no reported Type C grievances for the quarter. Compared to the previous quarters, a decrease in the number of grievances and PINCOS was received because most of the areas under AF are in their wrap- up activities.

Out of only 14 PINCOS received, KC Process/design/guidelines, quality and operation of SPs and RFR processing concerns have two cases each while the rest of the categories have one. For both the combined grievance and PINCOs, the top three concerns fall under financial management (5) followed by KC Process/design/guidelines (4) and RFR Processing (4).

Table 6. PINCOS Received for the Quarter Categories of PINCOS Total Percentage Administrative 1 4% CEAC Schedule/Timeline 2 8% Delivery of materials 1 4% Financial Management 5 20% KC Process/design/guidelines 4 16% Procurement 1 4% Quality and operation of SPs 2 8% RFR Processing 4 16% Salary and allowances 1 4%

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Categories of PINCOS Total Percentage Social and environmental 1 4% safeguards Positive Comments 1 4% O&M/Sustainability 1 4% Other concerns 1 4% Grand Total 25

III. Overall Financial Progress

3.1 Community Grants Disbursement

Of the total community grant allocation, 98% (PhP 2.113 Billion) was obligated to fund prioritized community sub-projects. To date, 93% or PhP 1.960 Billion of the total obligated funds was released.

Table 7. Status of Community Grants Disbursement Obligation (MIBF) Phase Allocation Total Releases Regular TAF 1st Batch of New Munis (C1) 119,291,191 114,424,190 1,650,300 110,868,492 1st Batch of New Munis (C2) 116,463,809 109,518,607 936,339 106,144,315 1st Batch of New Munis (C3) 12,555,000 12,150,000 0 1,568,000 1st Batch MT 265,189,000 253,530,835 1,052,930 245,042,585 2nd Batch MT 881,079,000 846,893,631 8,120,957 799,774,998 KC1 Expansion Munis (C2) 145,080,000 138,876,430 1,479,201 137,659,777 KC1 Expansion Munis (C3) 24,507,000 21,954,924 234,000 18,970,321 New Random/Guaranteed 602,175,000 569,629,164 11,166,936 523,170,069 Savings 0 21,358,908 0 16,871,213 2,166,340,000 2,088,336,688 24,640,663 1,960,069,770 TOTAL 2,112,977,351

3.2 Loan Utilization

By the end of the quarter, KCAF Project was able to utilize a cumulative US$ 59.118 Million or 99.99% of total loan amount covering barangay grants, consultants’ services, incremental operating cost and others. For the quarter alone, a total of US$ 1.822 Million was utilized. Utilization per category/component is shown in the table below.

Table 8. KCAF Loan Utilization ending September 2013 (in US$) Component Allocation Utilization Utilization Balance (US$) % of (Sept 2013) (Dec 2013) Utilization Grants 50,900,000.00 50,900,000.00 50,900,000.00 - 100.00% Goods/Consultants Services/Incremental 8,076,190.00 6,395,733.19 8,070,355.54 5,834.46 99.93% Operating Cost Front End Fee 147,810.00 - 147,810.00 - 100.00% Total 59,124,000.00 57,295,733.19 59,118,165.54 5,834.46 99.99% Note: Utilization includes amount withdrawn as working fund amounting to US$ 5,888,323.10

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IV. Plans for the Next Period/Quarter

Below is the list of the project’s upcoming activities and priorities for the next quarter:

4.1 Completion of remaining targets and commitments under KC Additional Financing including AusAID, Urban CDD Pilot and JSDF-LVUC

 Completion of all on-going community sub-projects and repairs of damaged structures using savings under grants  Closing of community accounts  Liquidation of community grants released to beneficiaries  Conduct of SET for completed sub-projects

4.2 Project Management

 National Project Review and Evaluation (PREW) Workshop and Planning for 2014

4.3 Monitoring and Evaluation

 Enhancement of the KC Municipal Talakayan Design o Validation Workshop for the Draft Talakayan Design  Finalization and Harmonization of KC Forms  National Monitoring and Evaluation (M&E) Conference  Grievance Redress System (GRS) Consultation Workshop  Development of KC Database System o Systems Specification Building o Conduct of consultations with the NPMO Project Staff and Management on the system requirements and field visit in project area to familiarize the developer on the current set-up of the information retrieval and reporting system

4.4 NCDDP Preparatory Activities  Provide technical assistance/documentation to effect signing of Loan Agreement with ADB for US$ 372 Million and with WB for US$ 479 Million by February 2014.  Commence recruitment and pooling of staff within the 1st quarter and effect hiring/contracting by March-April 2014.

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