MILLENNIUM DEVELOPMENT GOAL FUND
(MDG Fund)
February 1, 2008
Centennial Hall, Manila Hotel
OBJECTIVE
To support and fund LGU
initiatives that directly contribute
to the attainment of the MDGs.
BACKGROUND
DILG issued Memorandum Circular No. 2004-152Guide to Local Government in the Localization of
the MDGs
The MDFO-Policy Governing Board, DOF passed
Resolution No. 04-12-22-2005 establishing the
MDG Fund and allocating Php 500 M for financing
local initiatives in support of attaining the objectives
of the MDG
DILG and DOF-MDFO agreed to jointly implement
the MDG-Fund under a Memorandum Order (MOA)
signed on 6 August 2007
BENEFICIARIES
4th to 6th Income Class Municipalities
All provinces provided the beneficiaries
are 4th to 6th Income Class
Municipalities
FUND COMPONENTS
1.
Investment Support Component (ISC)
Provides financial assistance for infrastructures
and capital investment projects on soft credit
scheme
2.
Institutional Capacity Building Component (ICBC)
Provides technical assistance and advisory
services relative to the stages of the project
cycle
MILLENNIUM DEVELOPMENT GOALS
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality
4. Reduce child mortality
5. Improve women’s reproductive health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
GOAL 1. ERADICATE EXTREME
POVERTY AND HUNGER
Sample LGU proposals:
1. Livelihood programs/projects to include livelihood equipment
2. Seed capital for LGU-led micro-enterprises
3. Related technical assistance
4. Construction of roads and related infrastructure
5. Construction of post harvest facilities, warehouses, rice and
corn mills
6. Women Resource Centers and livelihood centers
7. Health and nutrition program such as supplemental feeding for
undernourished children, medical missions, day care
sessions, medical/nutrition/sanitation services
8. Integrated social forestry in communal forest
GOAL 2. ACHIEVE UNIVERSAL PRIMARY
EDUCATION
Sample LGU proposals:
1. LGU scholarship funds for deserving students
2. Construction/rehabilitation of school buildings/
educational facilities
3. Early childhood development initiatives like
reading centers/libraries
4. Procurement of educational materials
GOAL 3. PROMOTE GENDER EQUALITY
Sample LGU proposals:
1. LGU scholarship funds for deserving students
2. Improvement of gender sensitive facilities in
educational
infrastructures
like
women
development centers and livelihood centers
3. Establishment/implementation of programs/projects
to monitor and assist survivors of child and women
abuses and child labor victims
GOAL 4. REDUCE CHILD MORALITY
Sample LGU proposals:
1. Acquisition of health equipment for maternal and
child health services
2. Construction and rehabilitation of health facilities
3. Technical assistance on infant and young child
feeding initiatives
GOAL 5. IMPROVE MATERNAL HEALTH
Sample LGU proposals:
1. Acquisition of health equipment for maternal care
and delivery
2. Construction/rehabilitation of lying-ins/birthing clinics
3. Construction/rehabilitation of Rural Health Unit
4. Construction/improvement/rehabilitation of health/
day care centers, pre-school institutions to include
equipment and supplies
GOAL 6. COMBAT HIV/AIDS, MALARIA
AND OTHER DISEASES
Sample LGU proposals:
1. Procurement of equipment for local health monitoring
profiles
2. Technical assistance
education initiatives
on
advocacy
and
health
3. Conduct of Information, Education and Communication
(IEC) about HIV/AIDS and STD including preventive
measures such as safe sex campaigns and restricting
needle sharing by intravenous drug users
4. Procurement of medical equipment, supplies and
equipment for testing
GOAL 7. ENSURE ENVIRONMENTAL
SUSTAINABILITY
Sample LGU proposals:
1. Upland reforestation/afforestation
2. Assisted Natural Regeneration (ANR)
3. Timber Plantation Establishment
4. Agroforestry Development
5. Community-based forestry management project which
include integrated social forestry in communal forest
6. Enforcement of forest laws, rules and regulations in
communal forest or community watershed areas
GOAL 7. ENSURE ENVIRONMENTAL
SUSTAINABILITY
Sample LGU proposals:
7. Provision of sites in socialized housing purposes
8. Solid waste management
9. Riverbank stabilization/rehabilitation
10. Construction
systems
and
rehabilitation
11. GIS procurement and development
12. Ecological park development
of
water
supply
IMPLEMENTATION ARRANGEMENT
MDG-Fund
DILG-OPDS
DOF-MDFO
M&E/MIS
Marketing/
Prequalification
Technical Assistance
1.
Project Development
2.
Project Implementation
M&E/MIS
Project
Appraisal
LGU-PIU
Project Implementation
Project
Approval
Fund
Management
FINANCING TEMRS
SOFTER-SUPPORT PROJECTS
Interest Rate
: 7.5% per annum (fixed)
Repayments Period : 6 years inclusive of 1 year
grace period on principal
INFRASTRUCTURE PROJECTS
Interest Rate
: 8.5% per annum (fixed)
Repayments Period : 10 years inclusive of 2 year
grace period on principal
UNIQUENESS OF THE FUND
Institutionalization of Design Monitoring Framework
(DMF) per LGU project to enhance the success rate
and target attainment
No upfront collateral
No hold out on IRA
IRA deduction in case of default in repayment
Lower Interest Rate
No commitment fees
No pre-termination charge
DOCUMENTARY REQUIREMENTS
A. Loan Application:
1. Letter of Intent – duly signed by the Mayor/Governor
2. Sangguniang Bayan Resolution
3. Feasibility study of project proposal
DOCUMENTARY REQUIREMENTS
B. Certification for Borrowing & Debt Service Capacity:
1.
2.
Name of LGU and Income Class
Statement of Actual Income and Expenditures for the last three
(3) years duly certified and audited by the local accountant and
auditor with the following supporting documents:
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3.
4.
Trial balance
Balance sheet
Statement of operations
Report of revenue and receipts
Status of appropriation, allotments, and actual obligation incurred
Statement of cash flow
Current Year Annual Budget
Annual Investment Plan
DOCUMENTARY REQUIREMENTS
5.
Certification of existing/absence of loans duly
certified by the Local Treasurer and/or lending
institutions with the following
details:
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Kinds of loans and other obligations
Purpose of loan and other obligations
Name of lending institution/s
Date of approval and maturity
Terms and conditions (interest rate and repayment
period)
 Latest balance of loan and other obligations: (Current &
arrearages
 Annual amortization schedule (segregated into principal
and interest)
MDG-Fund Contact Details
The Executive Director
Municipal Development Fund Office (MDFO)
Department of Finance (DOF)
Podium Level, DOF Building
Bangko Sentral ng Pilipinas BSP Complex
Roxas Blvd., Manila
The Director
Office of Project Development Services
Department of the Interior and Local Government
Francisco Gold Condominium II
EDSA cor. Mapagmahal St.
Diliman, Quezon City