Creating the Project Steering Committee (PSC) for the Asian Development Bank-Technical Assistance (ADB-TA) No. 4556 — PHI: Local Government Finance and Budget Reform and Defining Its Roles and Responsibilities

August 29, 2006 DOF DEPARTMENT ORDER NO. 032-06 SUBJECT : Creating the Project Steering Committee (PSC) for the Asian Development Bank-Technical Assistance (ADB-TA) No. 4556 PHI: Local Government Finance and Budget Reform and Defining Its Roles and Responsibilities TO : All Concerned Pursuant to the agreement reached during discussions regarding the 2005 Interim Country Strategy and Program to proceed with a technical assistance (TA) on strengthening local government finance and budgeting, a project steering committee for the Asian Development Bank Technical Assistance (ADB-TA) No. 4556 PHI: Local Government Finance and Budget Reform within the DOF is hereby created. SECTION 1. Implementation Framework of ADB-TA 4556 . The ADB-TA shall support government initiatives to strengthen local government unit (LGU) administration and fiscal management by addressing the fiscal barriers arising from the problems related to (a) a weak legal and institutional framework, and (b) capacity constraints within the LGUs. These initiatives to be channeled via the Bureau of Local Government Finance (BLGF), the Municipal Development Fund Office (MDFO), and the Department of the Interior and Local Government-Local Government Academy (DILG-LGA). The implementation framework of ADB-TA 4556 is hereto attached as Annex "A". SECTION 2. Components of ADB-TA 4556 . The components shall include studies and expert assistance that will help the BLGF, MDFO and DILG-LGA to design and implement reform of LGU finance and budget processes in the areas of fiscal and administrative management and financial information systems development. The integrating framework for the key ADB-TA outputs is hereto attached as Annex "B". SECTION 3. Creation of Project Steering Committee . An ADB-TA Project Steering Committee (ADB-TA PSC) within the DOF is hereby created, to be led by the BLGF as follows: BLGF Executive Director - Chairperson Representative from DILG - Deputy Chairperson Representative from Municipal Development Fund Office - Member Representative from Local Government Academy - Member Representative from BLGF CO - Member Representative from BLGF Regional Office (Region III) - Member Representative from BLGF Regional Office (Region IV-A) - Member Representative from BLGF Regional Office (Region VII) - Member The Committee shall be responsible for the following: To provide policy directions for the Project; To evaluate the reports and deliverables against the projects Terms of Reference and its contribution to the objective of the TA prior to its formal acceptance; To support the project activities through assignment of counterpart staff, provide information and other critical project related inputs; To perform other activities essential to the success of the Project. The BLGF Executive Director is hereby designated as Chairperson. The Chairperson will report to the DOF Undersecretary on the ADB-TA's overall progress and bring issues that require their attention. The Chairperson shall coordinate closely with the MDFO and DILG-LGA to ensure the integration of activities managed by the latter with the rest of the component activities. For the BLGF component, a Project Manager and Project Coordinator shall be designated to execute day-to-day operations including liaison with the Consultants and partner agencies. As may be necessary, the BLGF including its concerned regional offices shall assign/designate technical staff to provide technical inputs and information to the Consultants, and ensure smooth project implementation. SECTION 4. Funding and Effectivity . The budget required to implement the provisions of this Department Order shall be sourced from the ADB-TA while the government counterpart support enumerated in the contract negotiation will be sourced from the funds of BLGF. All concerned are enjoined to comply with the provisions of this Department Order. (SGD.) MARGARITO B. TEVES Secretary ANNEX A Implementation Framework of TA 4556 ANNEX B Integrating Framework of TA 4556