5 Course 4 Investment Programming Part 1.ppt gandix

admnin invest

1. COURSE 4: INVESTMENT PROGRAMMING: PRIORITIZATION AND INVESTMENT PROGRAMS

2. Training Course on CDP Formulation and Plan Harmonization Course Objectives Screen and evaluate programs and projects based on various implementation requirements Identify priority programs and projects responsive in the realization of the locality’s development thrust and agenda Utilize different tools and techniques to objectively prioritize and schedule effectively the implementation of programs and projects based on their technical, financial, and institutional aspects

3. Training Course on CDP Formulation and Plan Harmonization Course Objectives Module 1: LDIP Overview and Pre-LDIP Activities Module 2: LDIP Stream 1: Screening and Prioritization Module 3: LDIP Stream 2: Determining Investment Financing Potential Module 4: LDIP Stream 3: Formulating the LRMP and Financing Plan, and the LDIP, AIP, and the Annual Budget

4. Training Course on CDP Formulation and Plan Harmonization Course Objectives

5. Training Course on CDP Formulation and Plan Harmonization Course Objectives

6. Training Course on CDP Formulation and Plan Harmonization Planning Scenario Scenario 1: Without/outdated CDP, Without CLUP 2. Scenario 2: Without/outdated CDP, With CLUP not DRR-CCA mainstreamed 3. Scenario 3: Without/outdated CDP, With DRR-CCA mainstreamed CLUP Process Prepare project brief using the preparation template 3b as a guide. Screen and prioritize PPAs from the structured list using suggested screening tools. Screen the PPAs in terms of conflict, compatibility, and complementarity using the CCC matrix. Screen project impacts to resources using the Resource Impact Matrix. Through a participatory workshop, rank projects based on the criteria for determining level of urgency of programs using the Level of Urgency Test. Screening using risk sensitive vision and/or development goals of the LGU using the Goal Achievement Matrix (GAM). .

7. Training Course on CDP Formulation and Plan Harmonization Planning Scenario Scenario 1: Without/outdated CDP, Without CLUP 2. Scenario 2: Without/outdated CDP, With CLUP not DRR-CCA mainstreamed 3. Scenario 3: Without/outdated CDP, With DRR-CCA mainstreamed CLUP Process 3. Determine investment potential. Collect revenue and operating expenditure data and determine historical trends. Analyze DRRM and CCA/M expenditures. Project future recurring revenue and operating expenditure levels. Compute funds available for financing new investments. 4. Formulate LRMP and Financial Plan Local Finance Committee composed of the C/MPDC, Budget Officer and Treasurer should crossmatch ranked PPAs list with the available resources. In case funding from outside sources is necessary, determine which financing options to pursue. Prepare the Local Development Investment Program. Tag climate change adaptation and mitigation PPAs in the LDIP and AIP.

8. Training Course on CDP Formulation and Plan Harmonization Planning Scenario Scenario 4 (Updated CDP, With or without CLUP) Process Check if the PPAs in the AIP and LDIP are risk informed. If the PPAs are not risk-informed, follow steps for scenarios 1-3.

9. Training Course on CDP Formulation and Plan Harmonization

10. Training Course on CDP Formulation and Plan Harmonization Module 1 : Local Development Investment Program (LDIP) Overview COURSE 4: INVESTMENT PROGRAMMING: PRIORITIZATION AND INVESTMENT PROGRAMS

11. Training Course on CDP Formulation and Plan Harmonization Investment Program In public finance, an investment program is a tool for utilizing the investible portion of the local budget Consists of: Final List of Priority projects; and, Programming of financing resources to fund identified programs and projects The investible portion of the local development fund is that component of the local budget which will be earmarked for financing the priority programs and projects, while the remaining portion will go into financing the costs of functions and services of the different LGU offices and departments.

12. Training Course on CDP Formulation and Plan Harmonization LOCAL DEVELOPMENT INVESTMENT PROGRAM The Principal instrument to implement the Comprehensive Development Plan (CDP) Serves as the link between the plan and the budget: “Local budgets shall operationalize approved local development plans” (Sec. 305 (i), RA 7160) translates the CDP into programs and projects and selects those that will be picked up by the LGU for funding in the annual general fund budget or through special fund generation schemes Has a time frame of three (3) years and is translated into Annual Investment Program (AIP)

13. Training Course on CDP Formulation and Plan Harmonization LOCAL DEVELOPMENT INVESTMENT PROGRAM Helps LGUs carry out their mandates and responsibilities (Sec. 16 & 17 of LGC). It consists of: Projects that are in pursuance of the LGU’s exercise of its powers and discharge of its duties and functions necessary for effective governance and essential for the promotion of the general welfare; Projects that are in pursuance of functions traditionally performed by national government agencies but which have already been devolved to LGUs; and Projects that are necessary, appropriate or incidental to the effective and efficient provision of the basic services and facilities enumerated in Section 17 of RA 7160.

14. Training Course on CDP Formulation and Plan Harmonization Local Development Fund 20% of the National Tax Allocation (NTA) Non-office maintenance and other operating expenses Non-office capital outlay (draperies, microwave oven, refrigerator and other equipment that are not essential for the delivery of services of a particular office or department)

15. Training Course on CDP Formulation and Plan Harmonization Local Development Fund Does not include that portion of the local budget which is consumed by the local government machinery for salaries , wages and other personnel costs , office maintenance and other operating expenditures , and office capital outlay

16. Training Course on CDP Formulation and Plan Harmonization

17. Training Course on CDP Formulation and Plan Harmonization

18. Training Course on CDP Formulation and Plan Harmonization Pre-LDIP Activities

19. Training Course on CDP Formulation and Plan Harmonization Project Brief The LDIP Process commences with the preparation of project brief These briefs contain the rationale, objectives, cost and components of the project and should be prepared with risk information Projects which are classified as “Urgent” should be prepared in the format of project brief and submitted to LDC It serves as means to implement goals and address development issues

20. Training Course on CDP Formulation and Plan Harmonization Project Brief Prepared project briefs are the basis for screening and prioritization of PPAs In the initial screening of projects, redundant proposals shall be consolidated Impractical or undesirable projects and those that can be aptly implemented by and identical to those proposed by other institutions (i.e., national or regional offices) shall be eliminated from the list.

21. Training Course on CDP Formulation and Plan Harmonization Project Brief The project brief is based from the outputs on the following: sifting of PPAs (Type and Ownership) CDP Form 2a (Structured List of PPAs/Long List)

22. Training Course on CDP Formulation and Plan Harmonization Example of Sifting by Type

23. Training Course on CDP Formulation and Plan Harmonization Example of Sifting by Ownership

24. Training Course on CDP Formulation and Plan Harmonization Example of CDP Form 2a

25. Training Course on CDP Formulation and Plan Harmonization Project Brief Name of Program/ Project FLOOD AND STORM RESILIENT DRAINAGE SYSTEM Brief Description: The construction of flood and storm resilient drainage system in the municipality will cater the urban barangays in the municipality, which was identified as flooded urban areas during the conduct of CDRA. This would lead to facilitate system of flow of water going to the SF River, mitigate, control and eliminate the inundation at central business district of the municipality especially during typhoon season and rainy days. Program/ Project Components Improvement/ Rehabilitation of Drainage System Mapping of the Proposed Master Drainage Plan Reforestation/ Massive Tree Planting Establishment of Retention Area Stakeholders consultation Consultation on flood study and review Identification of barangays/location for retention area Information, Education and Communication Advocacy Estimated Cost Total Estimated Cost PhP 20.0 million Improvement/Rehabilitation of Drainage System Phase 1 PhP 5.0 million Improvement/ Rehabilitation of Drainage System Phase 2 PhP 7.0 million Establishment of Retention Area PhP 8.0 million

26. Training Course on CDP Formulation and Plan Harmonization Project Brief Proponent and Partner Organizations MEO, MPDO, MDRRMO, Mayor’s Office NGAs: DPWH, PEO, NEDA, DILG, DTI, DOT NGOs, CSOs, POs: Local Kiwanis Club, JICA, USAid Justification In line with the municipality's goal to be resilient community, the construction of flood and storm resilient drainage system needs to be prioritized and realized. The municipality is a natural flood prone area, hence putting up retention area will help mitigate and control the flow during precipitation and natural hazards. The improvement/rehabilitation of the drainage system on the urban barangays will benefit the community, commercial establishments, thus, making the urban areas resilient and flood free community. The reduction of flooding incidence in this area due to this project will improve not just the economy but increase safety of the communities as well. Intended Beneficiaries 4,388 families, about 1/3 are poor households 200 commercial and financial establishments Nearby barangays and two adjacent municipalities Program Term Total Project Duration Improvement/ Rehabilitation of Drainage System Phase Improvement/ Rehabilitation of Drainage System Phase 2 Proposed Master Drainage Plan Mapping Reforestation/ Massive Tree Planting Establishment of Retention Area Years 5 years 13 months 6-9 months Years 1 and 2 Years 2 to 4 3 to 5

27. Training Course on CDP Formulation and Plan Harmonization Project Brief Target Output 25% of drainage system rehabilitated/improved 0% of urban flooded barangays Reduce the 20.94% affected population to 10% exposed to flash flood Established retention area on identified barangay area Possible Risks Lack of funds, urban areas are flooded especially during typhoon season and rainy days Adaptation/ mitigation measures or risk reduction measures employed Use of Climate change resilient design standards for flood volume. Incorporating ecosystem-based adaptation into the strategy such as Sustainable Reforestation, Maintenance of Drainage System, Maintain and control Retention Area, Expected Stakeholders' Response It is socially acceptable by the community considering that it will enhance accessibility to health, education and other services and facilities that are available at the urban center thus putting up the populace in a safe and secure community. The intention of this part is to encourage the beneficiaries of the project to put up their own projects/investments to create a synergy of benefits and/or maximize capital build up in the target community

28. Training Course on CDP Formulation and Plan Harmonization

29. COURSE 4: INVESTMENT PROGRAMMING: PRIORITIZATION AND INVESTMENT PROGRAMS

30. Training Course on CDP Formulation and Plan Harmonization Module 2: Screening and Prioritization of the Structured List of PPAs COURSE 4: INVESTMENT PROGRAMMING: PRIORITIZATION AND INVESTMENT PROGRAMS

31. Training Course on CDP Formulation and Plan Harmonization Objectives Prepare the ranked list of Projects by prioritizing the Structured List of PPAs Learn how to use the prioritization tools to rank the projects

32. Training Course on CDP Formulation and Plan Harmonization Screening and Prioritization The prepared project briefs are the basis for screening and prioritization of PPAs. Screening in terms of complementarity, compatibility and conflict and its impacts to resources should also be conducted to shortlist an inordinately long list of projects.

33. Training Course on CDP Formulation and Plan Harmonization Expected Outputs for Stream 1 an initial list of projects derived from the sectoral plans and other resources; Preliminary list of projects screen on tha basis of technical and sociopolitical criteria; and Ranked list of projects with cost estimates Note: Sectoral committees of the LDC have the major responsibility for the conduct of the proejct identification process (with supervision of the LPDC).

34. Training Course on CDP Formulation and Plan Harmonization Project File No. Random List of Projects Included in Initial List Included in Preliminary List Expected Outputs for Stream 1

35. Training Course on CDP Formulation and Plan Harmonization What are the tools for Prioritization? Urgency Test Matrix Resource Impact Complementarity Conflict- Compatibility- Matrix Goal Achievement Matrix

36. Training Course on CDP Formulation and Plan Harmonization Conflict Compatibility or Complementarity (CCC Matrix)

37. Training Course on CDP Formulation and Plan Harmonization The CCC Matrix Screening of projects for its conflict, compatibility or complementarity. Consolidate projects identified as redundant or repetitive and decide on the appropriate proponent office. Remove or reformulate conflicting projects wit some but are compatible or complementary with others to resolve the conflict(s).

38. Training Course on CDP Formulation and Plan Harmonization

39. Training Course on CDP Formulation and Plan Harmonization

40. Training Course on CDP Formulation and Plan Harmonization

41. Training Course on CDP Formulation and Plan Harmonization Project File No. Random List of Projects Included in Initial List Included in Preliminary List Expected Outputs for Stream 1 Projects included in the initial list that passed the initial screening. Projects excluded from the list are those found to be repetitive, redundant, obviously impractical or undesirable , and those that are already funded by other offices, agencies or organizations

42. Training Course on CDP Formulation and Plan Harmonization Resource Impact Matrix (RIM)

43. Training Course on CDP Formulation and Plan Harmonization The Resource Impact Matrix Projects are examined in terms of its demand or impact to the natural, human, infrastructure and financing resources of the LGU. A positive (+) sign indicates that the projects contributes to the increase in the quantity or improvement in the quality of the resources. A negative (-) sign is indicated if the project will lead to a decline in the quantity or reduction in the quality of the resource. Zero(0) if no effects are seen

44. Training Course on CDP Formulation and Plan Harmonization The Resource Impact Matrix The total positive and negative scores are summarized in the last two columns (total impact). If the total score of the project gets a net negative score, the project is rejected. The list of projects shall be ranked with the highest net positive score to the lowest. DRR-CCA projects usually have positive impacts on LGU’s resources and thus more likely to get passed this screening procedure.

45. Training Course on CDP Formulation and Plan Harmonization The Resource Impact Matrix *REFER TO PRELIMINARY LIST OF PROJECTS - AFTER CCC MATRIX WAS DONE

46. Training Course on CDP Formulation and Plan Harmonization Urgency Test

47. Training Course on CDP Formulation and Plan Harmonization Urgency Test Matrix Subjects the different projects to some indicators of necessity. Used to prioritize projects that are sensitive in terms of time and importance to maintain or push forward the functioning of the LGU. Done at the sectoral or LDC plenary level.

48. Training Course on CDP Formulation and Plan Harmonization Urgent Cannot be reasonably be postponed Would remedy conditions dangerous to public health, safety & welfare Builds resilience and sustainability by reducing risk or vulnerability Needed to maintain critically needed programs Needed to meet emergency situations Essential Required to complete or make usable a major public improvement Required to Maintain minimum standards as part of on-going programs Desirable self-liquidating projects external funding is available Necessary Should be carried out to meet clearly identified and anticipated needs Needed to replace obsolete or unsatisfactory facilities Repair or maintenance projects to prolong life of existing facilities Desirable Needed for expansion of existing projects Designed to initiate new programs considered appropriate for a progressive community Acceptable Can be postponed without detriment to present operations if budget cuts are necessary Deferrable Recommended for postponement or elimination from immediate consideration in the current LDIP Questionable in terms of over-all needs, adequate planning or proper timing. Level of Urgency

49. Training Course on CDP Formulation and Plan Harmonization Project Urgent Essential Necesary Desirable Acceptable Deferrable Total Rank Proj. 1 1 1 1 Proj. 2 2 2 2 Proj. 3 6 6 3 Proj...N 1 1 1 Urgency Test Matrix URGENT - 1 ESSENTIAL - 2 NECESSARY - 3 DESIRABLE - 4 ACCEPTABLE - 5 DEFERRABLE - 6 Note that NOT all projects identified by each sector may be submitted to the LDC in plenary. Because of the anticipated large number of sectoral projects, it may be necessary for the LDC to specify a maximum number that each sector may submit at any time. Hence, it is important for the sectors to select projects which they deem to be “URGENT”

50. Training Course on CDP Formulation and Plan Harmonization Project Health Educ POC Women Youth Sub-Sector N Total Rank Proj. 1 1 2 1 2 2 1 9 1.5 Proj. 2 2 1 2 2 1 2 10 3 Proj. 3 1 2 3 2 2 3 13 4 Proj. 4 3 2 2 2 2 2 13 5 Proj. N 1 2 1 2 2 1 9 1.5 Urgency Test Matrix URGENT - 1 ESSENTIAL - 2 NECESSARY - 3 DESIRABLE - 4 ACCEPTABLE - 5 DEFERRABLE - 6

51. Training Course on CDP Formulation and Plan Harmonization Goal Achievement Matrix (GAM)

52. Training Course on CDP Formulation and Plan Harmonization Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects Essentially a listing of LGU’s social and political goals, weighed according to the local administration’s priorities and commitments and consensus-based sectoral goals set by the community. The extent to which proposed projects contribute to the attainment of these goals is then estimated.

53. Training Course on CDP Formulation and Plan Harmonization Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects Divide the participants into clusters representing various societal sectors, e.g. Business Cooperatives/Agriculture Government Academe / Religious Women Elderly / Persons with Disabilities Youth List all projects categorized as “URGENT”

54. Training Course on CDP Formulation and Plan Harmonization Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects 3.Make sure that there projects are really PROJECTS, not services, nor legislation. 4.Make sure your projects are LGU-owned, or co-owned with the national government or private sectors. 5.List the projects corresponding to the numbers in the GAM 6.Based on the perceived importance of each goal to the interests of the sector one group represents, assign weights to each goal. The numerical total of the weights should be 1 or 100%. The assigning of weights can be done in a separate activity.

55. Training Course on CDP Formulation and Plan Harmonization Sector Goals Weight (100% or 1) Project Sector Goals 1 2 3 4 5 6 Total (1) or 100 Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects Weight given according to the perceived importance of the goal to the interests of a societal sector

56. Training Course on CDP Formulation and Plan Harmonization Sector Goals Weight (100% or 1) Project 1 2 3 4 5 6 A home for people who are healthy & who are fair & just in all their dealings 0.15 An economy that is competitive & sustainable 0.20 An environment that is wholesome, tourist-friendly & ecologically balanced. 0.18 Support infrastructures that are adequate, efficient & environmentally-compliant 0.25 A local governance structure that is capable, responsive & efficient 0.12 Optimum contribution of the city to provincial & regional development 0.10 Total (1) or 100 Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects

57. Training Course on CDP Formulation and Plan Harmonization 3 Project contributes greatly to the fulfillment of the goal or vision 2 Project contributes moderately to the fulfillment of the goal or vision 1 Project contributes slightly to the fulfillment of the goal or vision Project does not contribute to the fulfillment of the goal or vision -1 Project slightly inconsistent of the goal or vision -2 Project moderately inconsistent of the goal or vision -3 Project greatly contradicts the goal or vision Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects 7. Rate each prposed project using the following scale

58. Training Course on CDP Formulation and Plan Harmonization Sector Goals Weight (100% or 1) Project 1 2 3 4 5 6 A home for people who are healthy & who are fair & just in all their dealings 0.15 3 An economy that is competitive & sustainable 0.20 3 An environment that is wholesome, tourist-friendly & ecologically balanced. 0.18 1 Support infrastructures that are adequate, efficient & environmentally-compliant 0.25 -2 A local governance structure that is capable, responsive & efficient 0.12 1 Optimum contribution of the city to provincial & regional development 0.10 Total (1) or 100 Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects Weight given according to the perceived importance of the goal to the interests of a societal sector This is the rating of project vis-a-vis the goal

59. Training Course on CDP Formulation and Plan Harmonization Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects 8.Multiply the rating you gave by the corresponding weight of the goal and enter the product (score) in the appropriate cell. Add the scores for each project proposal. 9.Then add all Sectoral group scores as presented in the summary of GAM scores.

60. Training Course on CDP Formulation and Plan Harmonization Sector Goals Weight(100% or 1) Project 1 2 3 4 5 6 A home for people who are healthy & who are fair & just in all their dealings 0.15 3 . 45 An economy that is competitive & sustainable 0.20 3 . 60 An environment that is wholesome, tourist-friendly & ecologically balanced. 0.18 1 . 18 Support infrastructures that are adequate, efficient & environmentally-compliant 0.25 -2 -0.50 A local governance structure that is capable, responsive & efficient 0.12 1 .12 Optimum contribution of the city to provincial & regional development 0.10 Total (1) or 100 0.85 Weight given according to the perceived importance of the goal to the interests of a societal sector This is the rating of project vis-a-vis the goal Sector-Assigned wt X Rating = Score

61. Training Course on CDP Formulation and Plan Harmonization

62. Training Course on CDP Formulation and Plan Harmonization Using the Goal Achievement Matrix (GAM) for Ranking & Prioritizing Programs & Projects 10.Finally, arrange projects according to their total scores . The project with the highest total score is ranked as number one, the next number two, and so on. On the RANKED LIST OF PROJECTS , two columns for estimated costs are displayed. One column shows the individual cost of each project and the other reflects the cumulative or running total.

63. Training Course on CDP Formulation and Plan Harmonization Sector Name of Program/Project Economic Crop Facilities and Project GIS Mapping Social Procurement of Medical Equipment Physical Construction of RCDG Bridge Institutional Computerization and Archiving System Social Construction of Level 1 Hospital Environment Purchase of Solid Waste Collection Tools and Equipment Economic Palay-check Techno Demo and Farmers Field School Physical Concreting of Farm to Market Roads Institutional Construction of Motorpool Repair Bay @ City Hall Compound Environment Establishment of Material Recovery Facility Ranked List of Projects (Form 3a)

64. Training Course on CDP Formulation and Plan Harmonization Name of Program/Project Amount Crop Facilities and Project GIS Mapping 6,000,000.00 Procurement of Medical Equipment 34,000,000.00 Construction of RCDG Bridge 200,000,000.00 Computerization and Archiving System 9,000,000.00 Construction of Level 1 Hospital 150,000.00 Purchase of Solid Waste Collection Tools and Equipment 100,000.00 Palay-check Techno Demo and Farmers Field School 4,000,000.00 Concreting of Farm to Market Roads 1,500,000.00 Construction of Motorpool Repair Bay @ City Hall Compound 3,100,000.00 Establishment of Material Recovery Facility 8,000,000.00 Ranked List of Projects (Form 3a)

65. Training Course on CDP Formulation and Plan Harmonization Rank Name of Program/Project Est. Cost Cumulative Cost 1 Crop Facilities and Project GIS Mapping 100,000 100,000.00 2 Procurement of Medical Equipment 9,000,000 9,100,000 3 Construction of RCDG Bridge 34,000,000 43,100,000 4 Computerization and Archiving System 3,100,000 46,200,000 5 Construction of Level 1 Hospital 4,000,000 50,200,000 6 Purchase of Solid Waste Collection Tools and Equipment 150,000 50,350,000 7 Palay-check Techno Demo and Farmers Field School 6,000,000 56,350,000 8 Concreting of Farm to Market Roads 8,000,000 64,350,000 9 Construction of Motorpool Repair Bay @ City Hall Compound 200,000,000 264,350,000 10 Establishment of Material Recovery Facility 1,500,000 265,850,000 Grand Total 265,850,000 Ranked List of Projects (Form 3a)

66. Training Course on CDP Formulation and Plan Harmonization Rank Name of Program/Project Cost Estimate Period of Implementation Individual Cost Cumulative Cost From To Ranked List of Projects (Form 3a)

67. Training Course on CDP Formulation and Plan Harmonization Estimating Project Costs For some projects, cost estimates will already be available. In this case, the LPDO only needs to validate or refine the estimates. A ranked list of the proposed projects with cost estimates and other information may be summarized using the attached form. Cost Items to be Considered Direct Cost Indirect Cost Salaries of the project team members/ personnel/ staff Cost of materials, supplies, and equipment to be used for the project Travel Costs and other logistics Subcontracts, labor. Overhead cost (project office) General Administration

68. Training Course on CDP Formulation and Plan Harmonization Prioritization Exercises