KCNCDD Community Grants and LCC

1. KCNCDD Community Grants and LCC Overview

2. Project Financing, in Pesos

3. Computation of Community Grants • Background • All Yolanda-affected municipalities that are part of the original list of 670 (377munis) shall be entitled to 4 cycles to be implemented in 3 years • Year 1 - will combine the allocations for cycles 1 and 2 • Year 2 – cycle 3 allocation • Year 3 – cycle 4 allocation • All Yolanda-affected municipalities that are NOT part of the original list of 670 (177munis) shall be entitled to 1 cycle only but with premium: • muniswithin the 100-km path (59 munis) = 60% premium or equivalent to 160% • munisoutside the 100-km path (118 munis) = 30% premium or equivalent to 130% • Non-Yolanda areas (293 munis) shall be allowed to complete 4 cycles of KC cumulative from KC1, KCAF and KCMCC • Therefore, munis that have completed 4 cycles prior to KCNCDDP (32munis) will no longer be provided with community investment grants.

4. What do we need to know to compute the MGA? 1. Group • 377 munis • 177 munis (within 100-km path; outside 100 km path) • 293 munis (continuing 0; continuing1; continuing2; continuing3; incoming) 2. Income class • 1st to 3rd class • 4th to 6th class 3. Poverty Incidence • Above 50% • 40% to 50% • Below 40% 4. Population

5. How to compute the MGA? • Formula • MGA per cycle = Allocation per head x population • but not lower than P2,000,000 and not higher than P20,000,000 • How much is allocation per head?

6. Sample computation 1 • Municipality of TORRIJOS, MARINDUQUE (continuing and Yolanda-affected) • Givens: • Group 377 • 3rd class municipality • Poverty incidence is 35.16 % • Population of 29,366 • Formula: Allocation/head x population = MGA per cycle • P300 x 29,366 = P 8,809,800.00 per cycle or a total of 17,619,600.00 • Year 1 = P 8,809,800.00 x 2 = P 17,619,600.00 • Year 2 = P 8,809,800.00 • Year 3 = P 8,809,800.00

7. Sample computation 2 • Municipality of Odiongan, Romblon(Incoming and Yolanda-affected) • Givens: • Group 177 (outside the 100-km path) • 2nd class municipality • Poverty incidence is 35.89 % • Population of 43,676 • Formula: P300 x 43,676 = P 13,102,800 ; MGA per cycle- P17,033,640.00 Cycle 1/year 1 = P 13,102,800 x 130% = P 17,033,640.00

8. Sample computation 3 • Municipality of BANTON, ROMBLON (MCC-Random, has completed 3 cycles and non-Yolanda) • Given: • Group 293 • 5th class municipality • Poverty incidence is 37.97 % • Population of 5,963 • Formula: P400 x 5,963 = P 2,385,200.00 ; • Year 1/ cycle 4 = P2,385,200.00

9. Local Counterpart Contribution • KCNCDDP LCC as approved by NEDA: 30% of Total KCNCDDP funding • GPBP implementation also requires LCC • DBM and DSWD agreed to harmonize the LCC requirements of KCNCDDP and GPBP, hence, the LCC FAQs during the LGU Forum. • GPBP 2014 implementation LCC per DBM National Budget Memorandum No. 121 dated Mar 18, 2014:

10. How to harmonize the KCNCDDP LCC with the GPBP? • Follow GPBP provisions • Write NEDA on the implication of the GPBP LCC requirement ASAP for notation

11. LCC FAQs • Is the LGU required to provide LCC? • Yes. • How much is LCC? • 293 municipalities • For subproject implementation • 1st to 3rd class – 15% of KCNCDDP Funding • 4th to 6th class – 5% of KCNCDDP Funding • For Technical Support • LGU organic counterpart staff, office space, office furniture and equipment, computer, venue for related activities etc. • 554 Yolanda-affected municipalities • For technical support only: counterpart staff, office space, office furniture and equipment, computer, venue for related activities etc. • Is the above LCC applicable from year 1 until the completion of KCNCDDP? • No. The above LCC will be applied in Year 1 only.

12. LCC FAQs cont’d.. • How much is LCC from 2nd year onwards? • It shall be computed based on the combined cost of KCNCDDP and GPBP funding for the year. • Like the 1st year, is the above percentage for SPI only? • No.The above LCC percentage is for SPI and Technical Support combined. • Is the above percentage applicable to all municipalities including Yolanda-affected from 2nd year onwards? • Yes.

13. LCC FAQs cont’d.. • Is cash LCC required? • No. LCC can either be cash or in-kind. • If LCC is cash, where will it be deposited? • Cash LCC, if any, shall be deposited to the community account opened by the communities as depository of the KCNCDDP. • Can LCC cash be used by the LGU to hire staff for subproject implementation? • Yes. • Will the LCC be computed on a per subproject basis? • No. LCC will be computed based on total Municipal Grants Allocation.

14. LCC FAQs cont’d.. • What can be considered as LCC? 1. Materials and laborfor the implementation of the KCNCDDP approved subproject; 2. Capability Building and Implementation Support costs such as but not limited to: • Cost of LGU counterpart staff dedicated for the implementation KCNCDDP; • Cost of other activities related to the implementation of KCNCDDP such as, but not limited to: • social preparations, • trainings/workshops and conferences, coordination meetings including venues, • office space and other logistical requirements for DSWD staff assigned in the area.

15. LCC FAQs cont’d.. 3. LGU-LDF funded projects indicated in the approved Local Poverty Reduction Action Plan (LPRAP): • Provided said projects have not been committed as counterpart of the LGU for other National Government Projects. • What if the cost of the LDF-funded project of the LGU is equivalent to more than the required percentage of LCC requirement? • Answer: The KCNCDDP will count as LCC the amount equivalent to the required percentage only. • Can the LGU then commit the remaining amount as LCC for other NG projects? • Answer:Yes. • Provided further that the implementation of said projects shall coincide with the implementation of the KCNCCDP approved subprojects; • Can the LGU project funded from the previous year LDF be allowed as LCC? • Answer: Yes, for as long as the said project is simultaneously implemented with the KCNCDDP approved SP.