Guidelines on the Grant to Local Government Unit of Small Scale Slaughterhouse, Poultry Dressing Plant, Meat Cutting Plant, Freezer Storage, Meat Transport Vehicle, or Meat Establishment Equipment

April 18, 2017

DA DEPARTMENT CIRCULAR NO. 03-17

 

WHEREAS,the Meat Inspection Board (MIB) Resolution No. 2016-007 (2016) resolves to adopt and promulgate additional policy in the granting of financial assistance under the Meat Establishment Improvement Program (MEIP) to the LGU where the LGU's 50% share shall comprise the value of the land, right of way, access road, site development (fence and water tank),utilities (electricity and water supplies),communications and internet accesses, licenses, and clearances from concerned government agencies;

WHEREAS, Section 17 b(2)ix of Republic Act (RA) No. 7160 (1991), otherwise known as the Local Government Code of 1991, provides for the establishment and operation of public slaughterhouse as one of the basic services and facilities to be undertaken by cities and municipalities;

WHEREAS, Section 12 of Republic Act (RA) No. 9296 (2004), as amended by RA No. 10536 (2013), known as the Meat Inspection Code, provides that the local government units shall endeavour to improve existing meat facilities to comply with national standards, and that the national government shall allocate funds as incentive equivalent to funds available from Local Government Units (LGUs) for this purpose;

WHEREAS,there is a need to construct, establish, relocate, rehabilitate, improve or upgrade existing slaughterhouses particularly those in the third to sixth class municipalities particularly those in the ten priority (poorest) provinces of the country identified by National Economic Development Authority (NEDA) to conform with the NMIS standards and the requirements of meat hygiene and meat safety;

NOW, THEREFORE, I, EMMANUEL F. PIÑOL,Secretary of the Department of Agriculture (DA),by virtue of the power vested in me by law, do hereby issue this Department Circular on guidelines on the grant to Local Government Unit (LGU) of small scale slaughterhouse, poultry dressing plant, meat cutting plant, freezer storage, meat transport vehicle, or meat establishment equipment.

SECTION I. Definition of Terms.—

For the purpose of implementation of this Circular, the following word or phrase shall be defined as follows:

Administrative overhead refers to cost incurred by the Technical Working Group (TWG) and Project Management Office (PMO) for the implementation of the project such as but not limited to travelling expenses, meals, supplies and materials, honoraria, representation allowance, training/seminar workshop and other miscellaneous expenses.

Establishment shall mean construction, relocation, rehabilitation, improvement or upgrading of the LGU slaughterhouse, poultry dressing plant, meat cutting and or cold storage warehouse.

Meat transport vehicle refers to a sanitary and enclosed conveyance facility used in the distribution in commerce of consigned meat in a hygienic manner.

NMIS standard refers to slaughterhouse, poultry dressing plant, meat cutting and cold storage with facilities and operational procedures of minimum adequacy to slaughter food animals and or premises to cut and pack carcasses or primal parts' for distribution and sale in accordance with the requirements under Executive Order No. 137 (1993);

Rehabilitation means restoration or improvement of the physical state and operation of non-functional, dilapidated, unhygienic or sub-standard meat establishment (ME) to comply with the NMIS standards.

Relocation refers to the transfer of the ME to another site due to any or combination of the following reasons: (a) that the current site is not compliant with existing Comprehensive Land Use Plan (CLUP),laws, rules or regulations; (b) that the existing building is so dilapidated that rehabilitation is not cost efficient; (c) that the area does not provide for expansion of the facility; (d) such other justifiable and verifiable reason for the transfer.

Secretary refers to the Secretary of the Department of Agriculture (DA) who is at the same time the Chairperson of the NMIS Meat Inspection Board (MIB).

Small scale meat establishment (SSME) refers to the slaughterhouse, poultry dressing plant, meat cutting plant and freezer storage intended to slaughter less than 20 heads of hogs or small ruminants, less than 5 heads of large cattle or less than 1000 heads of birds per day. The fill floor area must be at least 200 square meters and the total lot area must be at least 1,000 square meters.

Small scale meat cutting and freezer storage refers to a meat establishment with at least 200 square meters floor area where carcasses and primal parts are cut and packed into desired specifications. It may be a separate facility or an integral part of the slaughterhouse, poultry dressing plant or public meat market with maximum capacity of 500 kilograms of pork, beef, poultry or other meat of food animals. There shall be one or two housed or enclosed 20-footer reefer van to serve as storage for meat and by-products.

Total project cost (TPC) refers to the estimated total cost of construction, upgrading or rehabilitation of the meat establishment facility which includes but not limited to civil works, slaughter and fabrication, equipment and utensils and installation.

SECTION II. Coverage.—

This Department Circular shall cover the establishment or construction of small scale slaughterhouse, poultry dressing plant, meat cutting plant, freezer storage, meat transport vehicle, or meat establishment equipment that conforms with the NMIS standard and the requirements for meat hygiene and meat safety in the following:

1. LGUs in the ten priority (poorest) provinces identified by NEDA;

2. Third (3rd) to sixth (6th) class Municipalities;

3. LGUs and or State Universities and Colleges (SUCs) that are willing to host the NMIS training slaughterhouse, poultry dressing plant, meat cutting plant or freezer storage; and

4. Such other recipient/s as identified and approved by the Secretary of Agriculture.

SECTION III. Qualification Criteria.—

The following qualification criteria must be met by the LGU applicant:

1. The LGU applicant must manifest its intent through a Sanggunian Bayan (SB) Resolution to avail of the grant under the SSMEP for the establishment of a small scale slaughterhouse, poultry dressing, meat cutting facility, freezer storage, meat transport vehicle, or slaughtering equipment that conforms with the NMIS standard and the requirements for meat hygiene and meat safety.

2. The applicant LGU must have at least minimum daily slaughter of either of the following: (a) 1 to 19 heads for hogs or small ruminants; (b) 1 to 4 heads of large cattle or; (c) 1 to 999 heads of poultry as certified by NMIS, Philippine Statistics Authority (PSA),Provincial Veterinary Office (PVO),or LGU Treasurer's Office whichever has available data.

3. Certification from the site inspection or validating team attesting that the proposed location complies with the requirements of the Code of Sanitation (PD 856), anti-pollution and other environmental laws, and other existing relevant laws, rules and regulations.

4. The LGU applicant must be classified as either third, fourth, fifth, or sixth class municipality or belonging to the ten priority (poorest) provinces as identified by NEDA. aDSIHc

5. For the establishment of the NMIS regional meat establishment training center (RMETC),the local government unit (LGU) applicant must have an existing State University or College (SUC) in the locality. It must allow the use of the meat establishment facility as training center for students, out-of-school youths, private sector, interested individuals, and NMIS trainees on slaughtering, fabrication, meat hygiene and quality assurance, or meat inspection.

6. Approved by the Secretary of Agriculture as grantee or recipient of the incentive.

SECTION IV. Application Requirements and Selection Procedures.—

A. The Local Government Unit (LGU)

1. Submission of SB Resolution (Annex A)

1.1 The SB resolution must stipulate the intent of the LGU to establish a small scale slaughterhouse, poultry dressing plant, meat cutting, freezer storage, meat transport vehicle, or to avail of slaughtering equipment.

1.2. When necessary, the LGU applicant may request for technical assistance or guidance from the DA-NMIS Regional Technical Operation (RTOC) on the application requirements and required documents to be submitted to DA-NMIS;

1.3. The LGU applicant may submit the SB Resolution to any of the following:

The Secretary

Thru:	The Assistant Secretary for Livestock
	Department of Agriculture
	Elliptical Road, Diliman, Quezon City 1101
CF.:	The Executive Director
	National Meat Inspection Service
	No. 4 Visayas Avenue, Barangay Vasra, Quezon City 1128
	The Regional Technical Director
	(Concerned Regional Technical Operation Center)

1.4. The Planning, Information and Monitoring Division (PIMD) of the NMIS shall be the repository of all submitted documents for the SSME projects.

1.5. The Meat Standard Development and Consumer Protection Division shall lead.

 The SSMEP Orientation of LGU applicants and the Social Preparation Orientation Workshop (SPOW) of the short-listed LGUs.

1.5.a. The LGU applicant may attend the SSMEP Orientation, which shall be conducted by NMIS every third or fourth quarter of the year in preparation for the screening and evaluation of applicants for the following year's grant.

1.5.b. The LGU applicants, who are included in the shortlist, shall be required to attend the SPOW. A Certificate of Completion shall be issued to the LGU participants (Annex B).

1.6. Only the LGUs that have (a) completed the SPOW; (b) submitted all the required Documents, and; (c) undergone validation by the SSME Project Management Team and found to be compliant with all the requirements below shall be included in the final list of possible recipients for the current year's SSMEP and endorsed to the Secretary of Agriculture for approval.

2. Submission of Documentary Requirements

2.a. Project Proposal/Business Plan (Annex C);

2.b. Work and Financial Plan (Annex D);

2.c. Cost and Effect Analysis (Annex E);

2.d. SB Resolution authorizing the Mayor to enter into contract with NMIS (Annex F);

2.e. (a) OCT/TCT of lot; (b) deed of absolute sale or; (c) deed of absolute donation and acceptance;

2.f. Certification of the Municipality/City Zoning Officer that the proposed site conforms to their Comprehensive Land Use Plan (CLUP) — agricultural, industrial or agro-industrial (Annex G);

2.g. Environmental Clearance Certificate (ECC),Certificate of Non-Coverage (CNC),or Certified True Copy (CTC) of application for ECC received by the DENR and Official Receipt, whichever applies;

2.h. Barangay Resolution that a public consultation had been conducted and that the residents agreed to the proposed meat establishment project by affixing their signature to the resolution (Annex H);

2.i. LGU Accountant's certification of the value of the land, right of way, access road, site development, perimeter fence, water storage tank, electrical connections and all other improvements funded by the LGU which must not be lower than the grant from the national government (Annex I);

2.j. Submit three specimen signatures of the signing authorities in the MOA, i.e.,the Local Chief Executive and two witnesses such as the Municipal Engineer and the Municipal Agriculturist (Annex J);

2.k DILG Certification on the classification of the Municipality, i.e.,3rd, 4th, 5th, or 6th class (Annex K);

2.l Accomplished NMIS site inspection checklist (Annex L),and;

2.m. Validation report by the SSME project management team (Annex M).

SECTION V. Responsibilities of the Parties.—

A. Responsibilities of the LGU Recipient

1.a. The LGU, represented by the Local Chief Executive, shall enter into a Memorandum of Agreement (MOA) with the National Meat Inspection Service (NMIS),represented by the Executive Director (Annex N).

1.b. The LGU shall exercise extraordinary diligence in its compliance with all the stipulations agreed upon in the MOA;

1.c. The Local Chief Executive (LCE) shall designate the Municipal Administrator, Engineer and Accountant as members of the NMIS Special Implementing Group (SIG),and the LGU Agriculturist and Meat Inspector as member of the Monitoring Group.

1.d. The LGU shall properly maintain the SLH, PDP, MCP, FS, MTV, or ME equipment in good repair and operating condition. For this purpose, not more than fifty percent (50%) of the total collections from the operation of the meat establishment shall be placed in a trust fund for repair, maintenance, and implementation of the Meat Inspection Code as amended (RA Nos. 9296 and 10536) and the Food Safety Act (RA No. 10611).

1.e. The LGU shall remit to the National Treasury 25% of the ante-mortem and post-mortem inspection fees collected from the SMMEP (Sections 11 and 46 of RA Nos. 9296 and 10536).

B. The Department of Agriculture-National Meat Inspection Service (DA-NMIS)

1. The NMIS Regional Technical Operation Center (RTOC)

1.a. If the LGU's application is filed at the RTOC, the RTD shall receive the proponent's SB resolution of intent and provide the list of required documents for submission.

1.b. The RTOC's focal person for MEIP shall conduct the initial site inspection and evaluation using the NMIS site inspection checklist (Annex L) and submit the findings using the validation report template (Annex M).

1.c. The RTD shall endorse the application documents, accomplished site inspection checklist, validation report and recommendation to the Central Office (CO) within three days after the site inspection.

2. The NMIS Central Office (CO)

2.a. If the LGU's letter of intent is received at the CO, the Executive Director (ED) shall direct the RTOC's focal person for MEIP to conduct the initial site inspection and evaluation using the checklist (Annex L) and report the findings (Annex M) within three days after the site inspection.

2.b. The shortlist of qualified LGU applicants shall be presented to the Meat Inspection Board (MIB) members for their information.

2.c. The Secretary and Chairperson of the MIB shall approve the LGU recipients for the current year.

2.d The Executive Director shall notify the LGU recipient upon approval of their application for grant under Small Scale Meat Establishment Project (SSMEP).

2.e. The SSMEP Project Management Team shall prepare the following:

2.e.1. Floor Plan or Schematic Diagram of SLH, PDP, MCP, or FS;

2.e.2. List of equipment for small scale meat establishments;

2.e.3. Bill of Quantities (BOQ);

2.e.4. Detailed Program of Works, and;

2.e.5. PERT-CPM.

2.f The preparation of complete and detailed Architectural Design and Engineering Plan duly signed and sealed by concerned licensed architect and engineers (civil, mechanical, electrical, and sanitary) for SLH, PDP, MCP, or FS shall be for public bidding to third party service providers. For uniformity, the SSME engineering plan prepared by the third party service provider shall be used in all LGU SSME projects.

2.g. The NMIS Bids and Awards Committee (BAC) shall conduct the public bidding for the preparation of complete and detailed Architectural Design and Engineering Plan for the small scale meat establishment project in accordance with existing implementing rules and regulations of RA No. 9184 (2002). The budget for this shall be taken from the portion of the SSMEP allotted for administrative expenses.

SECTION VI. Fund Source.—

1. The source of fund for the Small Scale Meat Establishment Project (SSMEP) is from the Materials and Other Operating Expenses (MOOE) of the General Appropriations Act (GAA) under the Assistance to Local Government Units.

2. The implementation of the SSMEP shall be subject to applicable provisions of COA Circular No. 94-013, series of 1994 dated December 14, 1994, COA Circular No. 2012-001, series of 2012 dated June 14, 2012 and other pertinent COA Circulars, as well as applicable laws, rules and regulations.

3. Any variation order during the project implementation shall be shouldered by the recipient LGU and subject to the provisions of RA No. 9184 (2002) and its revised implementing rules and regulations.

SECTION VII. Project Implementation.—

A. Project Management Office (PMO)

1. Composition

Chairperson:	Assistant Secretary for Livestock
Vice-Chairperson:	NMIS Executive Director
Members:	NMIS Deputy Executive Director
	Local Chief Executive (LCE) of recipient LGU/s
	Regional Technical Directors (Where the project/s is/are located)
	Division Heads (ARD, MSDCPD, POSMD, LD, MIED, PIMD, AFMD)
	Engineering Head (1)
	Accountant (1)
	Budget Officer (1)
	Cashier (1)
	SIG Chair (1)
	Monitoring Group Chair (1)
	Representative from COA (1)
	Representative from DBM (1)
	Representative from DENR-EMB (1)
	Representative from DILG-BLGD (1)
	Representative from the DOH-EHS (1)
	BAC Chairman (1)
	BAC Secretariat (1)
Secretariat:	PIMD Staff (2)

2. Terms of Reference ETHIDa

2.a. It shall provide direction in the implementation of the project.

2.b. It shall prepare the short list of priority recipients or grantees for the current year based on the criteria set and endorse the short list for approval by the Secretary through the Assistant Secretary for Livestock.

2.c. It shall exercise oversight functions relative to the implementation of the project.

2.d. It shall consult and collaborate with all concerned stakeholders for the effective implementation of the project.

2.e. It shall create committees, special or ad hoc, to handle identified issues and concerns during the course of the project implementation.

2.f. It shall provide technical and administrative assistance to the Special Implementing Group (SIG) and to the project itself.

2.g. The PMO shall manage the implementation of the project and observe that public bidding of the approved SSMEPs is done in accordance with the law, rules and regulations.

2.h. The concerned RTD shall join the PMO meeting only whenever there is an approved project/s in his/her area of jurisdiction.

2.i. It shall meet quarterly for assessment, updating, planning or such other related activities, or when the need for meeting arises.

2.j It shall perform other related tasks which are necessary and essential as identified by the members of the PMO in the execution of the project.

B. Special Implementing Group (SIG)

1. Composition

Chairperson:	PIMD Chief (1)
Members:	MSDCPD Training Head and Assistant (2)
	MSQA Representatives (2)
	POSMD Representative (3)
	LD Representatives from (1)
	MSDCPD Focal for Halal and SSMEP (2)
	PIMD Focal for Infrastructure Projects (1)
	Budget Representative (1)
	Representatives from the LGU (2)
Secretariat:	PIMD Staff (1)

2. Terms of Reference

2.a. The SIG shall coordinate with the recipient LGU and contractor and monitor the progress in the implementation of the project.

2.b. It shall submit monthly monitoring and evaluation report and utilization of fund during the implementation in accordance with the purpose and objective of the project for submission to the NMIS-PIMD copy furnished the LGU recipient and DA-OSEC through the Offices of the Undersecretary for Field Operation and Assistant Secretary for Livestock.

2.c. It shall check the required documents as to completeness prior to payment of billing statements. Progress billing shall be observed as the mode of payment of SSMEPs by the NMIS.

2.d. It shall conduct inspection as to the actual accomplishment of the contractor based on the Statement of Work Accomplishment (SWA) submitted;

2.e. The SIG shall coordinate with the concerned Divisions for the conduct of the Slaughterhouse Operation and Management Orientation Seminar (SOMOS),Butcher's Training, Basic Meat Inspection Training Course (BMITC),and such other trainings and seminars requested by the LGU veterinarians, meat inspectors or food safety and quality assurance officers for the successful and sustainable operation of the meat establishment.

2.f. The SIG shall schedule the dry run and turn-over of the completed project in collaboration with the concerned RTOCs, Divisions, and other government offices.

2.g. It shall ensure that the projects are completed according to the timeline, S-curve and PERT-CPM submitted by the contractor and any duration should be communicated immediately to the PMO.

2.h. It shall submit Terminal and Liquidation Reports for each project completed reflecting the actual cost and the As Built Plan of the project in accordance with the usual accounting and auditing rules and regulations pursuant to COA Circular Nos. 94-013, Series of 1994 (dated 14 December 1994) and 2012-001, Series of 2012 (dated 14 June 2012), and other applicable laws, government rules and regulations.

2.i. It shall see to it that completed project must be duly inspected by the COA and recorded in the appropriate LGU book of accounts.

2.j. It shall perform all other tasks that may be required by the PMO.

C. Monitoring and Evaluation Group

1. Composition

Chairman:	ARD Chief
Members:	Engineering Head, Staff and Architect (5)
	RTOC Focal for SSMEP where the approved project is located.
	LGU Representatives (2)
	PIMD M&E Focal (1)
Secretariat:	PIMD Staff (1)

2. Terms of Reference

2.a. The concerned RTOC shall conduct a monthly on-site inspection, announced or unannounced, to monitor, and ascertain the progress of the project implementation and shall submit monthly report to the Project Management Office (PMO) on the progress of the project and conformance to the standards.

2.b. An evaluation of the impact or outcome of the project to the community shall be undertaken by the NMIS PIMD and MSDCPD two years after the turn-over of the SSMEP to the LGU.

C. HONORARIA OF PMO, SIG, AND MG MEMBERS

All chairpersons and members of the PMO, SIG, and MG shall receive honoraria which shall be charged to the five percent (5%) administrative costs of the project subject to the usual accounting and COA auditing rules and regulations.

SECTION VIII. Duration of the Project.—

The construction of the building and installation of meat establishment equipment in one SSMEP (SLH, PDP, MCP, or FS) shall be completed within 120 days from Notice to Proceed (NTP) after which the civil works contractor and or meat establishment equipment fabricator shall be required to submit an AMTEC Test result within one month after completion of the project but prior to the dry run of the facility. There shall be no turn-over of the facility to the LGU without the AMTEC test result and dry run of the meat establishment equipment.

SECTION IX.  Sanctions.—

A. LGU RECIPIENT

The LGU shall be required to refund to the national government the entire cost of the SMME Project and impose the sanctions under Sections 56 and 57 of RA No. 9296 (2004) as amended by RA No. 10536 (2013) in the event that the LGU failed without justifiable cause to operate the facility.

B. CONTRACTOR AND OR FABRICATOR

Liquidated damages due to delay in the completion of the project shall be made and settled by the civil works contractor and or meat establishment equipment fabricator in accordance with the provisions of RA No. 9184 (2002) and its revised implementing rules and regulations.

SECTION X.  Effectivity.—

This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation or Official Gazette and submission of copy to the Office of the National Administrative Register (ONAR) at the UP Law Center, Diliman, Quezon City. cSEDTC

(SGD.) EMMANUEL F. PIÑOL

Secretary

 

Published in the Official Gazette, Vol. 113, No. 26, p. 4751 on June 26, 2017.