ICLTE-A.1-Data Analytics - Investment Programming and FRM
ICLTE-A.1-Data Analytics - Investment Programming and FRM
ICLTE-A.1-Data Analytics - Investment Programming and FRM
Resource Mobilization
Guidepoints in the Preparation of the Local
Development Investment Program (LDIP)
Outline of the Presentation
• Overview of the LDIP
– What is a development investment ?
– What is a LDIP ?
– What are the benefits of a LDIP ?
– Include
• Hard assets
• Soft assets
Sample LGU
Development of Interactive
Information Booth
Economic Enterprises Construction of a public market Launching of LGU product caravans
Construction of a sports complex
Construction and setting up of a
livelihood training center
Participation in product exhibits
Printing of LGU postal stamps
Launching of regular job fairs
Development
Public Safety and Security Construction of a Public Safety Center
(including acquisition and installation
Promotion of a home safety program
Year round training of public safety Concerns and
of modern equipment) personnel
Development of river flooding watch
towers including a public warning
Community watch program Investment
Health and Environment
system
Setting up and proper operation and
maintenance of a:
Comprehensive waste segregation
and reduction program
Responses
- Sanitary land fill Health privilege cards
- Diagnostic / Specialty Center for Continuing Dog Vaccination
Specialized Medical Services Anti- Smoke belching Campaign
- Senior Citizens Healthy Lifestyle Continuous Rounding-up of Stray
Center Animals
- Public Toilets
Urban Utilities and Construction of new roads and bridges Anti-jaywalking campaign
Transportation Construction of a river dike Driver education campaign
Concreting of sidewalks
Road traffic signalization including
appropriate signages
Drainage improvements including the
setting up of pumping stations
Construction of a transport terminal
Construction of artesian wells
Citizens’ Affairs Setting up and full operationalization of Fast tracking of Community Mortgage
a Women’s Center Program (CMP) projects
Construction and leasing of public Updating of homeowners’
housing to informal dwellers associations directory
• What is a LDIP ?
Items 1.0 and 2.0 will have to come from the revenue and expenditure projections developed using the tools
and techniques set out in BLGF’s RMM.
The initial — “without LDIP” estimate of the new development investment financing potential (Item 3.0) — is
the difference between the projected revenues and the projected expenditures that can be regarded as a must
for the LGU concerned.
The estimates of new development financing potential (Item 3.0) is what is going to initially matched with the
investment and MOOE requirements of the proposed LDIP projects.
LDIP Preparation Guidepoints
Watch out Points in the LDIP
Preparation Process
Total Tax
Year Revenues in Mill
Php
2005 25.0
2006 26.1
2007 28.6
2008 59.1
Annual Compound Growth
33.2%
Rate (ACGR)
Watch out Points in the LDIP
Preparation Process
• Preparing the “without LDIP” Revenue Forecasts – based on the RMM LGU
template
• Instead of applying the compounded average annual growth rate, use the
simply arithmetic average growth rate for the off-years, i.e., years during
which no general revision in assessments of real property were put into
effect.
• For instance, if the general revision of assessments was done in year 3, the
arithmetic average grRPT = (grRPT1 + grRPT2)/ 2.
The cost of ongoing programs may be estimated on the basis of the actual
budget allocations for said programs in the budget year and consists of:
a. Salaries/ wages of plantilla positions,
b. MOOE that is needed by the various departments/ offices to undertake
their regular functions, including the recurrent cost of new programs
introduced in the current year, and
c. Minor capital outlays.
These costs will essentially determine the “baseline” ceiling of the various
departments/ offices
Schedule services
Pay as you go
- LGU savings
- LGU current tax
revenues
a. The LDIP will be updated annually to reflect changing field and financing conditions, and to include new project requests
arising from changes/adjustments in the CDP.
b. The LDIP secretariat will come up and furnish the LDIP committee with quarterly reports tracking the status of project
implementation and revenue sources collected for the project.
c. The LDIP secretariat will monitor and conduct an evaluation of project results within 6 months after completion of a
LDIP project.
d. Current year projects left out in the capital budget or were not implemented because of revenue shortfalls or because of
unforeseen circumstances should be considered next year.
e. Latter years’ LDIP projects implemented in the current year will be replaced in the relevant year by the highest
priority project (s) of the succeeding year.
f. Scale, cost and timing adjustments for existing LDIP projects will be inputted directly into the LDIP without having to
undergo the LDIP process.
g. Emergency projects such as damage repairs/rehabilitation for existing infrastructure will be inputted directly into the
current year AIP without any need to undergo the LDIP process.
h. Projects already subjected to the LDIP evaluation process but left out of the current LDIP because of lack of sufficient
funding will be put into the portfolio of stand-by projects, and will be included as part of the 6th year LDIP in the
updated LDIP of the succeeding year.
i. New project proposals generated by changes/adjustments in the CDP will go into a portfolio of stand-by projects to
be subjected to the LDIP process before inclusion into the LDIP.
j. The entire LDIP will be subjected to a major update every three years based on the three-year review and update of the
CDP. The time frame for the major update will have to be done such that the AIP will be available for the budget call of
the succeeding year. Assuming that the major update of the CDP is started towards the end of Year 3 up to the first
quarter of Year 4, the major LDIP update including the required Year 4 AIP should be ready for the Year 4 budget call in
July.
- Prov.: 7.2%
- City: 6.2%
- Mun.: 4.5%
Prepared by
Norman R. Ramos
Decentralization Expert
EU PFM 2 Technical Assistance Team (TAT)