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AusAID support to LGU incentive program

AusAID support to LGU incentive program. Delivery Strategy on Subnational Governance. “ Improved local governance capacity to deliver basic services ” Three major activities that will account for 40% of aid program over the five years PRMF (till August 2014)

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AusAID support to LGU incentive program

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  1. AusAID support to LGU incentive program

  2. Delivery Strategy on Subnational Governance “Improved local governance capacity to deliver basic services” • Three major activities that will account for 40% of aid program over the five years • PRMF (till August 2014) • LGU Incentives Program (2013-2017) • PRMF successor program (2013-2017)

  3. PRMF Status • recently mobilised in 3 new provinces • expected transition to use local government systems for 7 provinces

  4. PRMF Successor Program • retaining core principles of PRMF: • road sector as the entry point • governance reform program (capacity building) • performance-based/incentives for good performance • working at the provincial level or supporting provinces • rethinking of program delivery • funding mechanism  performance-based/output-based • significant role and responsibilities transferred to DILG • scaled-up program and management arrangements • partnership arrangements • considerations for infrastructure component • PRMF mid-term review recommendations • DILG-DPWH program on national secondary roads (WB) • design activities • DILG assessment (not separate from LGU incentive design process) • Analytical studies • political economy analysis of the local road sector • options for enhancing performance-based/output-based aid for road infrastructure • Research on quality of service standards for local roads • Design mission

  5. LGU Incentive Program Proposed support to LGU incentive program: PCF-SGH • FUND AUGMENTATION TO PCF • SUPPORT TO POLICY DIALOGUE PROCESS (strategic direction and policy) • TECHNICAL ASSISTANCE TO DILG (operational and management needs)

  6. Concept Peer Review Process Key Points and Recommendations • Keep it simple • Use of partner government systems • Focus on achievement of targets/performance • PCF should remain small but SGH should allow access to bigger ‘incentives’ • Sustainability of changed practice/outcomes not the funding mechanism (limited lifespan) • Strategic and closer engagement with DILG to enhance PCF-SGH and strengthen policy • Fiduciary risk assessment

  7. Design timeline Important Milestones • AusAID Design document – October 2012 • NEDA ICC approval – November 2012 • Memorandum of Subsidiary Arrangement – December 2012 • Mobilisation – January 2013

  8. Program design activities • PCF financial assessment/fiduciary risk assessment (PFMP) • PCF (DILG) organisational capacity assessment (PAHRODF) • Consultation workshops with key stakeholders • DILG PCF Management Team • Local Chief Executives (Mayors and Governors) • DILG Regional Directors • Engagement and coordination with WB-AAA activity and PDF working group • Analytical Support

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