The municipal LGU (MLGU) plays an important role in the Project

• Community-driven development requires a facilitating environment. The MLGU needs to provide a conducive environment that will enable residents to participate in discussions regarding the development of their communities.
• The MLGU, through its Mayor, will be responsible for mobilizing resources in order to help barangays fund the prioritized community projects.
• The MLGU, through the Sangguniang Bayan and the Mayor, can also pass ordinances and policies in support of CDD to institutionalize this as a local poverty alleviation strategy.
• The MLGU needs to assume a steering role in promoting active stakeholders’ engagement in CDD. The Mayor, who heads the Municipal Inter-Agency Committee (MIAC) and the Municipal Development Council (MDC), can tap these structures to provide technical assistance, monitoring and oversight to CDD implementation. The Mayor can also link the communities to other agencies when needed.
• The MLGUs must also promote the integration of community development and action plans into the local development plans

Other roles of the MLGU in the Project may be included in the Memorandum of Agreement.

As a CDD program, KALAHI-CIDSS ensures that communities are actively involved in the process from start to end. Not only are they given direct access and control of the funds for their community projects, they also have the opportunity to participate in making key development decisions for their communities.

Bottom-Up Budgeting (BUB) is an approach initiated by the National Government that ensures that the preparation of budget proposal of agencies takes into consideration the needs of poor cities/municipalities identified in the local poverty action plans, which are prepared through a participatory planning process involving basic sectors and civil society organizations (CSOs).

KALAHI-CIDSS and BUB cover common municipalities.

In municipalities covered both by KALAHI-CIDSS and BUB, a link is established between CDD operation and GPBP by creating proper sequencing and complementarity between community-level action planning using CDD with the statutory local planning and GPB-coordinated budgeting at the municipal level. Specifically, at the community level, barangays will be assisted in preparing and implementing priorities in their local poverty reduction action plans (LPRAPs), to be developed using a participatory community and inter-community social and technical preparation. At the municipal level, community priorities in the barangay LPRAPs which are unfunded due to limit of Kalahi-CIDSS funding shall be advocated for the incorporation in the municipality LPRAP, to be proposed to the BUB.

Municipalities can continue CDD operation with BUB support, even after the end of the four KALAHI-CIDSS funding cycles. In municipalities which have completed at least four cycles of the CDD (beginning from the KALAHI-CIDSS), the LGUs, based on internal resources and GPBP support, can continue the pace, scale, sustainability and quality of social development and poverty reduction in their localities by practicing participatory development, transparency, and responsive governance, with CDD as their platform.

The intended recipient communities through their selected volunteer management committees will hold the funds.

For safeguards and local checks and balance, KALAHI-CIDSS will set up and standardize in all of its municipalities the following technical, social process, wide transparency, and accountability measures, by means of:

• Giving communities, LGU officials and the general public in the locality orientation, training and standard manuals of operations and procedures on the KC-NCDDP community social preparation, community procurement, community finance and community infrastructure;
• Dividing up into smaller amounts the releases of funds to the communities, comprising of two or three tranches;
• Conducting prior review, due diligence and co-signing by local KC-NCDDP staff of the requests, transactions and reports of the communities;
• Practicing transparency in local decision-making and access to project information, through community reporting of project information and progress during Barangay Assembly and community monitoring meetings, as well as display of the project information and physical and financial progress in community notice boards;
• Exercise of oversight by local government officials, local development council members and the barangay treasurer through their participation in endorsing the requests of communities, as well as taking part in the community consultations, planning, implementation and monitoring meetings;
• Keeping the composition of various community-level project management committees diffused among different community members, who are given training on community procurement, basic financial management, project management, simple audit, and operation and maintenance with organizational development;
• Setting up a grievance and complaints system, accessible to community members and the general public, for reporting to the KC-NCDDP any observation or wrongdoing;
• Feeding back observations to community members and LGU officials during the conduct of on-site supervision, audit and monitoring inspections by KC-NCDDP staff at various levels and external supervision Missions;
• Sponsoring the conduct of local inter-municipality audit of financial, procurement and related transactions reflected in the records of communities;
• Implementation of the provision on sanctions in the KC-NCDDP Memorandum of Agreement with LGUs and Sub-Project Agreements with communities; and
• Establishing a computer-based KC-NCDDP database of information, at the municipality and up, and web-based reports on community projects receiving KC-NCDDP funding.

The KC-NCDDP will follow a formula which considers the poverty incidence level and population of the municipality. The computation of the grant for communities is shown under Section III Assistance to Municipalities.

The combined cost of per capita investment of all barangays shall be pooled and earmarked for the municipality in every cycle up to four cycles of CDD opernation, minus the cycles accumulated from KALAHI-CIDSS.

No municipality will receive below P2 million or more than P20 million in any given cycle except if they belong to the Yolanda-affected municipalities.

As a way to support local social development and poverty reduction, the policy on CDD is expressed in two important National Government policy documents: the Philippine Development Plan (2011-2016) and the National Anti-Poverty Program of the National Anti-Poverty Commission (NAPC) (2010-2016), endorsing the expansion of programs emphasizing CDD as one of its policy thrusts, to serve as vehicle for people's empowerment through their participation in poverty reduction work.

The scaling up of CDD into a national program is also backed by the Human Development and Poverty Reduction Cluster, which passed a resolution of support signed by the Secretaries of the following agencies: NAPC, Department of Agrarian Reform (DAR), Department of Agriculture (DA), Department of Education (DepEd), Department of Energy (DOE), Department of Environment and Natural Resources (DENR), Department of Health (DOH), Department of the Interior and Local Government (DILG), Department of Labor and Employment (DOLE), Presidential Commission for the Urban Poor (PCUP), and the DSWD; and 165 Mayors of KALAHI-CIDSS Makamasang Tugon (MT) municipalities, who have given an endorsement of support calling for the scaling up of CDD.

KC-NCDDP will follow an open menu system, wherein communities will choose what projects will answer their prioritized needs. The following types of projects may be supported by KC-NCDDP:

• Basic services sub-projects. These include community water systems, school buildings, health stations, and electrification.
• Basic access infrastructure. These include foot bridges, access roads, and foot paths.
• Community common services facilities. These include pre- and post-harvest facilities, as well as small-scale irrigation systems.
• Environmental protection and conservation. These include flood control systems, sea walls, artificial reef sanctuaries, and soil protection structures.
• Skills training and capability building. These include eco-tourism projects.
• Others not prohibited in the Negative List below.

Negative List of Sub-Projects and Activities Prohibited for KC-NCDDP Funding:

• Weapons, chainsaws (except during disasters), explosives, pesticides, insecticides, herbicides, asbestos, and other potentially dangerous materials and equipment
• Fishing boats and nets above the prescribed size and weight set by the Republic Act 8550, Philippine Fisheries Code of 1998
• Road construction into protected areas
• Use of project funds for purchase of or compensation for land
• Micro-credit and livelihood activities which involve on-lending of project funds
• Maintenance and operation of facilities provided with project funding
• Activities that have alternative prior sources of committed funding
• Recurrent government expenditures (e.g. salaries for government and LGU staff)
• Political and religious activities, rallies, and materials
• Salaried activities that employ children below the age of 16 years
• Activities that unfairly exploit women or men at any age
• Travel
• Consumption items or events
• Activities that will violate existing provincial ordinances or policies related to mining and logging, among others

In post-disaster operation of KC-NCDDP, the eligible sub-projects can be expanded to include items like purchase and use of chainsaws to recover fallen trees, shelters, acquisition of equipment.

Community-driven development (CDD) is a globally recognized strategy for achieving service delivery, poverty reduction, and good governance outcomes. It:

• Helps communities in poor municipalities identify challenges around reducing poverty and make informed decisions on a range of locally identified options for development, including how this is made and in what form;
• Gives control of resources to address local poverty to communities; and
• Builds the capacity of both state (including local governments) and civil society stakeholders to provide assistance and respond to calls for support from poor communities as they implement development initiatives.

In KALAHI-CIDSS National Community-Driven Development Program - Additional Financing (NCDDP-AF), the following municipalities are eligible for coverage by the program:

• 4th – 6th class municipalities identified as “poor”, that is, with poverty incidence above the national average of 26.5%, based on the 2009 Small Area Estimates (SAE) of the National Statistical Coordination Board (NSCB); and
• 1st – 3rd class municipalities with high poverty incidence (40% or higher).

All of the barangays in a KC-NCDDP-covered municipality are automatically eligible to get social and technical preparation assistance from KC-NCDDP. However, the actual barangays that will get KC-NCDDP funding (called community grants) for implementing community projects will depend on the result of a local criteria-setting, technical review, and prioritization process. The latter will be carried out in every cycle of the CDD operation in a municipality by the different barangays, inter-barangay forum or expanded municipal development council, with participation from community volunteers aside from the LGU officials.

The above-mentioned process will require making local decisions in a transparent, broad-based and inclusive way, in which the barangay-proposed community projects will be presented, a set of locally-adapted criteria will be applied, and the priority ranking of the projects being proposed will be decided collectively. In the said process, representatives, coming from community residents other than the barangay and municipal LGU officials, will be required to take part and contribute to the decision-making.

All of the barangays in a KC-NCDDP-covered municipality are automatically eligible to get social and technical preparation assistance from KC-NCDDP. However, the actual barangays that will get KC-NCDDP funding (called community grants) for implementing community projects will depend on the result of a local criteria-setting, technical review, and prioritization process. The latter will be carried out in every cycle of the CDD operation in a municipality by the different barangays, inter-barangay forum or expanded municipal development council, with participation from community volunteers aside from the LGU officials.

The above-mentioned process will require making local decisions in a transparent, broad-based and inclusive way, in which the barangay-proposed community projects will be presented, a set of locally-adapted criteria will be applied, and the priority ranking of the projects being proposed will be decided collectively. In the said process, representatives, coming from community residents other than the barangay and municipal LGU officials, will be required to take part and contribute to the decision-making.

Poor municipalities are eligible to up to four cycles or rounds of implementation. Each cycle is equivalent to a year except the first cycle where the duration is normally longer to allow for sufficient time for learning and familiarization in the process.

Municipalities that have previously implemented Kalahi-CIDSS before but have not yet completed the four cycles will continue their remaining cycles in the NCDDP.

Across the four (4) core cycles of the CDD, municipalities can get the following two kinds of assistance: (a) social and technical preparation, and (b) funding assistance for implementing community projects.

In the first three cycles, DSWD will actively assist in social and technical preparation. By the fourth cycle, the cost of the said social and technical preparation shall be shouldered by the local government unit (LGU).

The municipal allocation for implementing community projects will be provided from the first to the fourth cycles.

After the fourth cycle, a municipality is considered a "Graduate" and is expected to have increased management capabilities of their internal resources, and can thus leverage for external funding (for example, from the Grassroots Participatory Budgeting), while practicing the CDD strategy.

The Community Empowerment Activity Cycle (CEAC) is the platform used by Kalahi-CIDSS for engaging communities in a facilitated process of community analysis, planning, project implementation, monitoring and evaluation. It provides communities in putting CDD principles to practice.

Through the five-stage process of the CEAC, communities learn about their development needs and identify solutions in the form of projects in order to enhance their access to quality basic social services and to accelerate their development through participation in inclusive local planning, budgeting and implementation.

All KC-NCDDP LGUs, regardless of income class, shall be required to provide LCC, except the pre-identified 554 LGUs (NCDDP eligible municipalities affected by TS Yolanda) which shall be exempt from providing LCC but during the 1st year of KC-NCDDP implementation only.

a. If the LGU is also implementing the Grassroots Participatory Budgeting Process (GPBP), the LCC shall be 30% of combined funding from the KC-NCDDP and the GPB on a per municipality basis.

b. If the LGU is a non-GPB area, the LCC shall be 30% of total funding from KCNCDDP on a per municipality basis

LCC can either be cash or in-kind.

Cash LCC, if any, shall be deposited to the community account opened by the communities as depository of the KALAHI-CIDSS and GPB funds.

In-kind LCC can be in the form of:

• Materials and labor for the implementation of the KCNCDDP and GPB projects;
• Portion, if not 100%, of Cost of LGU projects indicated in the approved Local Poverty Reduction Action Plan (LPRAP) provided said project has not been committed as counterpart of the LGU for National Government Projects other than GPB; Provided further that the funds for said projects were sourced from the Local Development Fund (LDF) and implementation shall coincide with the implementation of the NCCDP approved subprojects on a per municipality basis.
• Capability Building and Implementation Support costs such as:
  • Cost of LGU counterpart staff dedicated for the implementation of GPB and KALAHI-CIDSS NCDDP;
  • Cost of other activities related to the implementation of GPB and KALAHI-CIDSS NCDDP such as, among others, social preparations, trainings/workshops and conferences, coordination meetings including venues, office space and other logistical requirements for DSWD staff assigned in the area.

The assigned cost/value of in-kind LCC shall be agreed upon by the communities with the concurrence of DSWD.

The impact evaluation of KALAHI-CIDSS found out the following:

• Inclusiveness and minimized elite capture. It was successful in directing resources to the poorest municipalities. Within these municipalities, participation in the process was not dominated by local elites, and monitoring show that indigenous people, women and the poorest barangays are benefitting.
• Impact on household well-being was positive, as indicated by increased consumption. Per capita consumption increased by 5% in KALAHI-CIDSS-assisted municipalities.
• Improved basic service delivery. KALAHI-CIDSS has shown to make basic service facilities more accessible to and utilized by community members.
• Increased social capital outcomes as indicated by growing group membership and trust levels. Community members’ attendance and participation in barangay assembly meetings have increased in Kalahi-CIDSS municipalities.
• Increased participation in barangay assemblies. Community members’ attendance and participation in barangay assemblies have increased in KALAHI-CIDSS areas.

These findings show the gains that could be gleaned by using the community-driven development (CDD) approach.

Communities in target municipalities empowered to achieve improved access to basic services and to participate in more inclusive local planning, budgeting and implementation. Specifically:

• Communities are empowered to meet challenges and opportunities (access to basic services, protection against risk etc.)
• Increased functionality of institutional mechanisms ( good governance and responsiveness) ; and
• Reduction of poverty in its multiple dimension

The program ensures that a truly people centered development through development assistance, capacity building and implementation support to poverty, disadvantaged, indigenous people and disaster affected municipalities

KALAHI-CIDSS considers the implementation of community projects, which usually come in the form of small-scale infrastructure, as a by-product and secondary to its main project: citizen empowerment.

The different projects under the portfolio of KALAHI-CIDSS differ based on the source of funding.