Guidelines for Strengthening Linkage of National/Regional/Provincial Development Strategies, PPAs with CDP

June 29, 2017

DILG MEMORANDUM CIRCULAR NO. 084-17

GUIDELINES FOR STRENGTHENING LINKAGE OF NATIONAL/REGIONAL/PROVINCIAL DEVELOPMENT STRATEGIES, PROGRAMS, PROJECTS AND ACTIVITIES (PPAs) WITH THE COMPREHENSIVE DEVELOPMENT PLAN (CDP)

1. BACKGROUND

The Department issued Memorandum Circular (MC) No. 2016-102 Guidelines on the Preparation or Updating of Local Plans on 08 August 2016. In the said MC, local government units (LGUs) are reminded to: (i) formulate or update their local plans in accordance with the Synchronized Local Planning and Budgeting Calendar 2016 (SLPBC 2016); (ii) enhance vertical (national-province-city/municipality) linkages; and (iii) periodically review their Local Development Investment Programs (LDIPs). Said SLPBC is also contained in the DILG-NEDA-DBM-DOF Joint Memorandum Circular No. 1, Series of 2016 (JMC No. 2016-01) Updated Guidelines on the Harmonization of Local Planning, Investment Programming, Resource Mobilization, Budgeting, Expenditure Management, and Performance Monitoring and Coordination in Fiscal Oversight, dated 18 November 2016. These guidelines prescribed all provinces, cities and municipalities through their Local Development Councils (LDCs) to finalize their Provincial Development and Physical Framework Plans (PDPFP) and Comprehensive Development Plans (CDPs) by March 2017 respectively. HTcADC

To provide the strategic directions that shall guide local development planning, the current Administration's Philippine Development Plan (PDP) 2017-2022, anchored on a national long-term vision more popularly known as AmBisyon Natin 2040, plays a vital role. The PDP 2017-2022 and fulfillment of the country's international commitments such as the Sustainable Development Goals (SDGs) and Sendai Framework for Disaster Risk Reduction 2015-2030 thus reflect and serve as bases for the strategic directions and priority thrusts of national and subnational governments.

Operationalization of the JMC No. 2016-01 within the context of the current Administration's priorities shall ensure local and national plan harmonization and complementation and at the same time augmentation of local financial resources for high impact, locally-identified development projects. Consistent with DILG-OSEC Special Provision No. 12 of the General Appropriations Act (GAA) FY 2017 and the aforementioned JMC No. 2016-01, this guidelines emphasizes the key role of LDCs and civil society organizations/people's organizations (CSOs/POs) in the planning and prioritization process.

2. PURPOSE

This Memorandum Circular serves to:

• Ensure compliance to the updated local development planning guidelines and requirements as stipulated under JMC No. 2016-01;

• Facilitate harmonization of local development plans with provincial and national development strategies and priorities given the recent approval of the PDP 2017-2022, thru the institutionalization of relevant processes; CAIHTE

• Provide an avenue for the National Inter-Agency Team (NIAT) and Regional Inter-Agency Teams (RIATs) to formally apprise stakeholders of the public financial management (PFM) tools, processes and related guidelines as contained in JMC No. 2016-01;

• Emphasize the role of the Province in local development planning and as oversight partner of national government agencies (NGAs) to its component cities and municipalities;

• Highlight LDCs' and CSOs/POs' role in local development planning through LDIP review and program, project and activity (PPA) prioritization in consideration of national and provincial priorities; and

• Emphasize the role of local plans as a source of local government priority PPAs to strengthen planning and budgeting linkage.

3. LEGAL BASES

3.1. Republic Act No. 7160 or the Local Government Code (LGC) of 1991

• Section 29 — Provincial Relations with Component Cities and Municipalities

• Section 106 — Local Development Councils

• Section 109 — Functions of Local Development Councils

• Section 114 — Relation of Local Development Councils to the Sanggunian and the Regional Development Council

• Section459 — Role of the Province

3.2. DILG-OSEC Special Provision No. 12, FY 2017 GAAMonitoring of the Support for the Assistance to Municipalities (Empowerment Fund)

3.3. DILG-NEDA-DBM-DOF JMC No. 1, Series of 2016Updated Guidelines on the Harmonization of Local Planning, Investment Programming, Resource Mobilization, Budgeting, Expenditure Management, and Performance Monitoring and Coordination in Fiscal Oversight, dated 18 November 2016

3.4. DILG MC No. 2008-156Guide to Comprehensive Development Plan (CDP) Preparation for Local Government Unit, dated 22 October 2008

3.5. DILG MC No. 2010-112LGU Compliance to Updating and Legitimization of Comprehensive Land Use Plan (CLUP) and Comprehensive Development Plan (CDP), dated 12 October 2010

3.6. DILG MC No. 2016-97 2016 Accreditation of Civil Society Organizations, and Selection of Representatives to the Local Special Bodies, dated 19 July 2016

3.7. DILG MC No. 2016-102Guidelines on the Preparation or Updating of Local Plans, dated 08 August 2016

4. COVERAGE

This Memorandum Circular covers all Provincial Governors, Component City/Municipal Mayors, Sanggunian Panlalawigan/Panlungsod/Bayan, DILG Regional/Provincial Directors, and others concerned. aScITE

5. DEFINITION OF TERMS

5.1. Civil Society Organization (CSO) — a non-state and non-profit association that works to improve society and the human condition. Basic types of CSOs include non-governmental organization, civic organization, cooperative, social movement, professional group and business group (DILG Memorandum Circular No. 2016-97).

5.2. Comprehensive Development Plan (CDP) — the document that pertains to the multi-sectoral plan formulated at the city or municipal level, which embodies the vision, sectoral goals, objectives, development strategies and policies within the terms of LGU officials and the medium-term. The CDP contains: (1) Ecological Profile, (2) Sectoral Development Plan and (3) Implementing Instruments (LDIP, Legislative Requirements, Capacity Development Program and Monitoring and Evaluation Strategy) (JMC No. 2016-01).

5.3. Comprehensive Land Use Plan (CLUP) — the plan for the long-term management of the local territory. As the skeletal-circulatory framework of the territory's physical development, it identifies areas where development can and cannot be located and directs public and private investments accordingly.

5.4. Local/Provincial Development Investment Program (L/PDIP) — a basic document linking the local development plan to the budget for cities and municipalities/provinces. It contains a prioritized list of PPAs which are derived from the CDP for cities and municipalities and PDPFP for provinces matched with financing resources and to be implemented within a three to six-year period (JMC No. 2016-01).

5.5. People's Organization (PO) — an association of residents in a barangay, or barangays, established to promote public interest and with an identifiable leadership structure and membership. POs are often formed among the disadvantaged sectors of society such as the farmer-peasant, artisanal fisherfolk, workers in the formal sector and migrant workers, workers in the informal sector, indigenous people and cultural communities, women, differently-abled persons, senior citizens, victims of calamities and disasters, youth and students, children, and urban poor (DILG Memorandum Circular No. 2016-97). DETACa

5.6. Provincial Development and Physical Framework Plan (PDPFP) — a document that identifies strategies and corresponding PPAs that serve as primary inputs to the provincial investment programming, budgeting and implementation. The PDPFP also serves as a key vertical influence in linking provincial development objectives with local, regional and national policies and priorities (JMC No. 2016-01).

5.7. Regional Development Plan (RDP) — as accompanying document to the PDP, contains the overall development framework of the region in the medium term including the sectoral and spatial strategies, strategic interventions and priority programs that support the attainment of the goals and objectives of the PDP and address the development concerns of their respective regions. It also provides clear directions for the allocation of public and private resources and guide the delivery of programs and projects. The PDP and RDPs provide the framework on which local plans and programs are anchored to.

5.8. Sendai Framework for Disaster Risk Reduction 2015-2030(Sendai Framework) — a 15-year, voluntary, non-binding agreement which recognizes that the State has the primary role to reduce disaster risks but that responsibility should be shared with other stakeholders including local government, the private sector and other stakeholders. It aims for the substantial reduction of disaster risk and losses in life, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities and countries (United Nations International Strategy for Disaster Reduction).

5.9. Sustainable Development Goals (SDGs) — building on the success and failure of the Millennium Development Goals (MDGs), SDGs consist of 17 goals and 169 associated targets that are integrated and indivisible, global in nature and universally applicable, taking into account different national realities, capacities and levels of development and respecting national policies and priorities. The goals cover the three (3) dimensions of sustainable development: economic growth, social inclusion and environmental protection (A/RES/70/1 Transforming our World: The 2030 Agenda for Sustainable Development).

5.10. Updated CDP — the approved city/municipal CDPs which are valid for at least FY 2018 and onwards.

6. POLICY CONTENT AND GUIDELINES

6.1. Updating of Local Plans

6.1.1. Pertinent provisions in so far as applicable of the abovementioned policies/memorandum circulars are hereby reiterated. LGUs are reminded to review and update their PDPFPs, CLUPs and CDPs for consistency with the PDP 2017-2022 and other pertinent policies issued by the National Economic and Development Authority (NEDA), Housing and Land Use Regulatory Board (HLURB), DILG and other concerned NGAs and its instrumentalities with respect to their responsibilities and mandates in the development of said plans.

6.1.2. The CDP, specifically the LDIP, is increasingly being acknowledged as the main source of local development priority programs and projects for consideration by external funders: development partners, national government and other financing institutions. In FY 2018, the CDP will be included in the Seal of Good Local Governance (SGLG) criteria.

6.2. Local Development Planning and Harmonization Process with Timeline

Consistent with the provisions of JMC No. 2016-01 including the SLPBC 2016 and current DILG initiatives on CDP retooling, all LGUs should already have formulated or updated their respective CDPs and PDPFPs by March 2017 consistent with the following timelines: HEITAD

Table 1. FY 2016-2017 CDP Preparation/Updating Activities Based on the SLPBC

Planning Phase	Timeline
1. Setting of Planning Guidelines and Strategic Development Directions	July 2016
2. Updating of the Ecological Profile Planning Database	July-November 2016
3. Identification of Unmet Needs/Vision-Reality Gap	November 2016
4. Identification of Goals, Solutions and Policy Options/PPAs	November 2016
5. Prioritization of PPAs	December 2016-January 2017
6. Preparation of Local/Provincial Development Investment Program (L/PDIP)	February 2017
7. PDPFP-CDP Harmonization and Complementation	February-March 2017
8. Approval of PDPFP and CDP	March-April 2017
9. Approval of AIP	07 June 2017
10. Issuance of Budget Call	16 June 2017
11. Conduct of Budget Forum	05 July 2017
12. Preparation and Submission of Budget Proposals (Department Heads)	15 July 2017
13. Conduct of budget hearing	15 August 2017
14. Preparation of Executive Budget	10 October 2017
15. Submission of Executive Budget to the Sanggunian for Approval	16 October 2017
16. Enactment of Appropriation Ordinance	17 October-onwards

6.3 Strengthening Local Development Planning Mechanisms: Alignment of National Government Strategic Priorities and Development Thrusts

To strengthen vertical linkages in planning and budgeting, and ensure CDP compliance and LDC functionality, a series of activities shall be undertaken to reinforce the regular prioritization and harmonization processes as contained in various planning policies.

All local development plans shall be aligned with the priorities of the PDP 2017-2022 anchored on AmBisyon Natin 2040; and, the country's international commitments that include the Agenda 2030, SDGs, and the Sendai Framework.

Workshops will be conducted at the regional and provincial level to capacitate concerned city/municipal/provincial government functionaries on relevant processes for plan harmonization and alignment with national priorities. Actual plan harmonization and alignment shall be realized through the conduct of the Regional Workshops on National/Regional Strategic Priorities and SDG Alignment, Provincial Strategic Direction Setting Conference Workshops and the Participatory Project Prioritization Conference Workshops with schedule prescribed as follows:

Table 2. Schedule of Local Development Planning Activities

Activity	Schedule
Regional Workshops on National/Regional Strategic Priorities and SDG Alignment	01-15 August 2017
Provincial Strategic Direction Setting Conference Workshops	16 August-08 September 2017
Participatory Project Prioritization Conference Workshops	25 August-29 September 2017

Pilot testing in three (3) pilot sites at all levels will be conducted prior to the actual workshop schedules indicated above. aDSIHc

6.3.1. Regional Workshops on National/Regional Strategic Priorities and SDG Alignment

6.3.1.1. The DILG will be supporting NEDA as it utilizes tools developed to ensure alignment of provincial priorities with national priorities (PDP 2017-2022, Ambisyon 2040, Agenda 2030, SDGs and Sendai Framework). Conduct of the regional workshops shall be guided by the following:

a. The regional workshops are to be participated in by the Provincial Development Council Executive Committee (PDC-ExeCom) members namely: Governor, representative of component city and municipal mayors to be chosen from among themselves, Chairman of the Committee on Appropriations of the Sangguniang Panlalawigan, Liga ng mga Barangay Provincial Chapter, and a representative from CSOs/POs that are represented in the council as well as the Provincial Planning and Development Coordinator (PPDC).

 Said workshops shall also be participated in by DILG Regional and Provincial CDP, Community-Based Monitoring System (CBMS), and Millennium Development Goal (MDG)/SDG Focal Persons.

b. The regional workshops shall be held before the conduct of the Provincial Strategic Direction Setting Conference Workshops to ensure: (i) readiness of the provinces to present in the latter event, the provincial strategic directions aligned with the PDP 2017-2022, RDP and the SDGs guided by the SDG Implementation Roadmap and the PDIP Alignment Form (See Annex A); and (ii) PDIP alignment with the national and regional priorities. ATICcS

6.3.1.2. Outputs of the Regional Workshops on National/Regional Strategic Priorities and SDG Alignment

 As a result of a review of the PDIP through: (i) NEDA-facilitated workshops for the formulation of the SDG ImplementationRoadmap; and (ii) DILG-facilitated workshop for the accomplishment of the PDIP Alignment Form, the following are the expected outputs:

a. NEDA SDG Implementation Roadmap for the Province; and

b. Accomplished PDIP Alignment Form containing the list of PPAs in the PDIP that shall be marked or noted if considered aligned with national and regional priorities (i.e., PDP 2017-2022, RDP, SDG and Sendai Framework) and reprioritized based on said alignment. The PDIP Alignment Form should contain the list of priority projects over a three-year period (i.e., 2016-2018, 2017-2019, 2018-2020) with proposed funding source and implementation period indicated since it essentially contains projects listed in the PDIP. Said form is to be signed by the PPDC, certified correct by the CSO Representative and Chairman of the Committee on Appropriations of the Sangguniang Panlalawigan, and approved by the Governor/PDC Chairman.

6.3.2. Provincial Strategic Direction Setting Conference Workshops

6.3.2.1. The provincial government shall integrate PDP and RDP strategic directions and priority thrusts and shall cascade the strategic directions of the province made consistent with national and regional priorities to guide constituent City/Municipal Development Council Executive Committees (C/MDC-ExeComs) in their LDIP review and prioritization. The activity also aims to increase awareness of provinces/cities/municipalities on PFM tools and processes.

6.3.2.2. The C/MDC-ExeCom shall subsequently review their LDIPs to assess alignment of their respective local PPAs with the provincial, regional and national government strategic priorities and development thrusts. The process thus seeks to initially identify PPAs in the LDIP that are responsive to, aligned and consistent with national, regional and provincial level strategies and priorities. ETHIDa

6.3.2.3. With assistance from and coordination with the DILG Regional/Provincial Office (DILG RO/PO), the PDC-ExeCom and PPDC shall: (i) plan out the schedule for the conduct of the Participatory Project Prioritization Conference Workshops for component cities/municipalities; and (ii) spearhead the conduct of the Provincial Strategic Direction Setting Conference Workshops guided by the following:

a. The conference workshops are to be participated in by component C/MDC-ExeCom members namely: City/Municipal Mayor, Chairman of the Committee on Appropriations of the Sangguniang Panlungsod/Bayan, President of the Liga ng mga Barangay City/Municipal Chapter, and a representative from CSOs/POs that are represented in the council as well as the City/Municipal Planning and Development Coordinator (C/MPDC) and City/Municipal Local Government Operations Officer (C/MLGOO).

b. All Provincial Conference Workshops shall be conducted before the conduct of the Participatory Project Prioritization Conference Workshops to ensure LDIP alignment with the provincial and national priorities. TIADCc

6.3.2.4. Outputs of the Provincial Strategic Direction Setting Conference Workshop

a. During the plenary discussion on the provincial strategic priorities and development thrusts, the PDC-ExeCom shall have the list of aligned PPAs in the PDIP Alignment Form validated and finalized with the Local Chief Executives (LCEs) of constituent cities/municipalities. The PDIP Alignment Form shall be legitimized by having the form signed by the appropriate signatories; and

b. As a result of the workshop on the review of the respective LDIPs of cities/municipalities, the C/MDC-ExeCom shall accomplish the LDIP Alignment Form (See Annex A) containing the list of PPAs in the LDIP that shall be marked or noted if considered aligned with national, regional and provincial priorities (i.e., PDP 2017-2022, PDIP, SDG and Sendai Framework) and reprioritized based on said alignment.

 The LDIP Alignment Form should contain the list of priority projects over a three-year period (i.e., 2016-2018, 2017-2019, 2018-2020) with proposed funding source and implementation period indicated consistent with that indicated in the LDIP. Said form shall be signed by the C/MPDC, certified correct by the CSO Representative and Chairman of the Committee on Appropriations of the Sangguniang Panlungsod/Bayan, and approved by the City/Municipal Mayor/C/MDC Chairman.

6.3.3. City/Municipal Level Prioritization of PPAs

6.3.3.1. Participatory Project Prioritization Conference Workshops

 The C/MDC-ExeCom shall have the Provincial Strategic Direction Setting Conference Workshop outputs reviewed and validated by the Core Planning Team. The process thus seeks to reconfirm, reprioritize based on the alignment, finalize, and approve PPAs in the LDIP Alignment Form by the C/MDC-ExeCom through a participatory process in consideration of technical inputs and participation of other stakeholders to ensure that the aligned PPAs are responsive to the needs of concerned communities. cSEDTC

 With assistance from the C/MLGOO, the city/municipal government, through the C/MDC-ExeCom shall spearhead the conduct of the Participatory Project Prioritization Conference Workshops guided by the following:

a. The city/municipal government shall present the results of the assessment of the LDIP as contained in the LDIP Alignment Form vis-à-vis vertical alignment with provincial, regional and national priorities done through consultations with the Core Planning Team for validation at the technical level. The list of aligned PPAs of the provincial government shall serve as input to guide the Core Planning Team, C/MDC-ExeCom members and CSOs/POs in their LDIP review, validation, reprioritization and finalization of priority PPAs.

b. To increase participation of CSOs/POs, the city/municipal government shall invite accredited as well as non-accredited CSOs/POs and private sector representatives in the Participatory Project Prioritization Conference Workshops as may be deemed feasible.

c. CSO/PO participants in the Participatory Project Prioritization Conference Workshops should at least be equal to the number of government representation in the C/MDC-ExeCom participating in the conference workshop.

6.3.3.2. Outputs of the Participatory Project Prioritization Conference Workshops

a. Expected outputs of the process are as follows:

i. LDIP Alignment Form validated with the Core Planning Team; and finalized by C/MDC-ExeCom members and CSO representative. The LDIP Alignment Form shall be legitimized by having the form signed by the appropriate signatories;

ii. List of unfunded PPAs identified to be aligned with provincial priorities that the city/municipality intends to seek funding support from the provincial government.

 Said PPAs that are to be elevated for consideration by the PDC are to be listed down in Form 1:Aligned PPAs Form for Provincial Funding Support — For Cities and Municipalities (See Annex B). Said form is to be signed by the C/MPDC, certified correct by the CSO Representative and Chairman of the Committee on Appropriations of the Sangguniang Panlungsod/Bayan, and approved by the City/Municipal Mayor/LDC Chairman.

b. The city/municipal mayor shall submit hard and soft copies (Excel file format) of the LDIP Alignment Form and Form 1 not later than 04 October 2017 to the DILG PO and to their respective PDCs for consideration in the province's PDIP. AIDSTE

• Original copy of the LDIP Alignment Form is to be submitted to the DILG PO copy furnished the PDC.

• Original copy of Form 1 is to be submitted to the PDC copy furnished DILG PO.

• Soft copy (Excel file format) of the LDIP Alignment Form and Form 1 are to be submitted to the DILG PO

6.3.4. Consolidation of City/Municipal Level PPAs for Consideration in Provincial Government Planning and Budgeting

6.3.4.1. The provincial government may decide to fund or provide financial augmentation and support to city/municipal PPAs aligned with their priorities. Provinces are advised to provide constituent cities/municipalities appropriate notices/feedback by furnishing them the list of PPAs that they have considered for inclusion in their PDIP using Form 2: Aligned PPAs Feedback Form — For Provinces (See Annex C).

 Form 2 is to be signed by the PPDC, certified correct by the CSO Representative and Chairman of the Committee on Appropriations of the Sangguniang Panlalawigan, and approved by the Governor.

6.3.4.2. The following are to be submitted not later than 11 October 2017:

• Original copy of Form 2 shall be transmitted to the C/MDC copy furnished DILG PO; and

• Soft copy (Excel file format) of Form 2 shall be submitted to the DILG PO. SDAaTC

6.4. Consolidation of City/Municipal Level PPAs at the National Level

The LDIP Alignment Form as an output of the Participatory Project Prioritization Conference Workshop (See Section 6.3.2.2) shall be subsequently submitted to the national level to guide decision-making and prioritization of projects and programs intended for LGUs by the national government. Forms 1 and 2 also provide valuable information relative to provincial oversight and vertical alignment of provincial-city/municipal plans. These documents may also be used as references in the assessment of the alignment of local-level plans to national strategic priorities and thrusts.

7. REFERENCES

7.1. Philippine Development Plan 2017-2022

7.2. A/RES/70/1 Transforming our World: The 2030 Agenda for Sustainable Development

7.3. United Nations International Strategy for Disaster Reduction

7.4. Rationalizing the Local Planning System, 1st Edition 2008

7.5. Local Planning Illustrative Guide: Preparing and Updating the Comprehensive Development Plan (CDP)

8. ANNEXES

ANNEX A	L/PDIP Alignment Form
ANNEX B	Form 1: Aligned PPAs Form for Provincial Funding Support — For Cities and Municipalities
ANNEX C	Form 2: Aligned PPAs Feedback Form — For Provinces

9. INQUIRIES/APPEALS AND ESCALATION

Inquiries or comments concerning this Circular should be directed or addressed to the DILG-BLGD through any of the following: telefax numbers (02) 929-9235/(02) 927-7852, email address [email protected], or through mail at 25th Floor, DILG-NAPOLCOM Center, EDSA corner Quezon Ave., West Triangle, Quezon City for resolution and appropriate action. AaCTcI

10. EFFECTIVITY

This Memorandum Circular shall take effect immediately.

(SGD.) CATALINO S. CUYOIC, DILG

ANNEX AL/PDIP Alignment Form

Local/Provincial Development Investment Program (L/PDIP) Alignment Form

ANNEX BForm 1: Aligned PPAs Form for Provincial Funding Support — For Cities and Municipalities

Aligned Programs, Projects, Activities (PPAs) for Provincial Funding Support

ANNEX CForm 2: Aligned PPAs Feedback Form — For Provinces

Aligned Programs, Projects, Activities (PPAs) that are to be Funded by the Province