Republic of the Philippines TO : MUNICIPAL …...This Memorandum Circular is being issued to prescribe the general policies and procedures in the implementation of the FY 2020 AM Program

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Republic of the PhilippinesDEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

Memorandum Circular No. 2020 - ____Date: ______________

TO : MUNICIPAL MAYORS, MEMBERS OF THE SANGGUNIANGBAYAN, MEMBERS OF THE MUNICIPAL LOCAL FINANCECOMMITTEES AND DIRECTORS OF THE CENTRAL ANDREGIONAL / FIELD OFFICES AND ALL OTHERS CONCERNED

SUBJECT : POLICY GUIDELINES AND PROCEDURES IN THEIMPLEMENTATION OF THE FY 2020 LOCAL GOVERNMENTSUPPORT FUND-ASSISTANCE TO MUNICIPALITIES (LGSF-AM)PROGRAM

1.0 BACKGROUND

Local governments confront rising public expectations regarding the delivery ofservices. Despite more than two decades of implementation of Republic Act (R.A.) No.7160 (Local Government Code of 1991), local governments still face variouschallenges in the exercise of devolved service delivery functions. Foremost amongthese is the raising of sufficient funds for local development.

Part of the General Appropriations Act (GAA) under the FY 2020 Local GovernmentSupport Fund (LGSF) is the Assistance to Municipalities (AM) Program, which seeksto equitably assist all municipalities in the delivery of basic services by providingfinancial subsidy to municipalities for the implementation of their priority programs andprojects.

2.0 PURPOSE

This Memorandum Circular is being issued to prescribe the general policies andprocedures in the implementation of the FY 2020 AM Program and ensure that allconcerned are able to abide by the policies, processes, and responsibilities in theoverall implementation of the Program.

3.0 LEGISLATIVE COMPLIANCE

Cognizant of the need to provide further support to the municipalities to enable them tofully carry out functions devolved to them, while at the same time, building theircapacity towards genuine fiscal autonomy, the National Government (NG) has scaledup its efforts to ensure meaningful devolution by providing a Local GovernmentSupport Fund (LGSF) under the Republic Act (R.A.) 11465 also known as the GeneralAppropriations Act (GAA) FY 2020.

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4.0 COVERAGE OF THE PROGRAM

The Program shall cover 1,372 municipalities. As provided for in Special Provision No.1 of GAA FY 2020-Assistance to Municipalities the projects to be funded under theProgram shall be culled out from the Local Development Investment Programs (LDIPs)of municipalities, consistent with and limited to:

paragraph b.2 (vi), (vii) and (viii) of Section 17 of R.A, No. 7160 or the LocalGovernment Code of 1991;

disaster risk reduction related facilities and equipment

peace promoting projects; and/or

other infrastructure projects that will address delivery of basic services of themunicipalities

The projects shall exclude sports equipment; school buildings and other facilities for publicelementary and secondary school; clinics, health centers and other health facilitiesnecessary to carry out health services; reclamation; income generating projects; minor repairand maintenance of existing government facilities and projects costing less than P1,000,000.

5.0 DEFINITION OF TERMS

For purposes of this Memorandum Circular, the following terminologies are used and definedas follows:

5.1 Aide Memoire An official document (Annex X) that summarizes the findings,recommendations, and agreements during the exit conference as a result of theproject monitoring visit conducted by the DILG.

5.2 Certificate of Completion A document (Annex Q) issued by the MLGUstating that the project has been satisfactorily completed in accordance with thePlans and Specifications of the Contract based on the Inspection Report(Annex O) indicating no defects/deficiencies observed, duly prepared by theMLGU Inspectorate Team.

5.3 Certificate of Final Acceptance1 A document issued by the Municipalityupon final acceptance of the works, after the one-year Defects Liability Periodand after all defects, deficiencies and failures, if any, have been corrected andsupplied, based on the Final Inspection Report (Annex P), duly prepared by theMLGU Inspectorate Team.

5.4 Defects Liability Period (DLP) One (1) year after the project completion upto the Final Acceptance in accordance with Section 62.2.2 of the 2016 RevisedIRR of R.A. 9184. In addition to the regular repairs done by the Contractorduring this period, at least two (2) weeks before its expiry date, the project shallagain be inspected by the Inspectorate Team to determine any defects thereon.All discovered defects, if any, shall be repaired by the Contractor to thesatisfaction of the Inspectorate Team, after which the Certificate of Acceptanceshall be issued to the Contractor by the MLGU. For projects funded by theNational Government and implemented by MLGU, the latter shall be required to

1 Section 62.2 of the 2016 RIRR of R.A. No. 9184

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post the necessary warranty security in accordance with Section 62 of R.A.9184 and its IRR.

5.5 Duly-Accredited Civil Society Organizations (CSOs) Civil SocietyOrganizations which have previous experience and participation in localplanning. The accreditation shall be in accordance with the existing guidelinesin DILG MC 2016-97 series of 2016, DILG MC 2018-89 series of 2018, and/orby DILG which guidelines to be issued for the purpose.

5.6 Disaster Risk Reduction (DRR) - Related Equipment A motor vehicle orrescue equipment/tools used for preparedness, immediate response, andrescue/relief operations during disasters and calamities.

5.7 Evacuation Center Refers to an enclosed building designed and constructedto protect people living in the locality during an emergency, especially duringman-made disasters, such as fire, and natural disasters, such as typhoons,flooding, and earthquake.

5.8 Geo-resistivity Survey - A field survey that uses the geo-resistivity meter toknow the subsurface layering of soil and rock formations, and to determine thegroundwater level of the study area, which shall be conducted before thepreparation of the Detailed Engineering Design (DED) and shall form part of theMLGU Counterpart.

5.9 Inspection Report A document that summarizes the narrative of the findingsof Inspectorate Team during inspection, including repair works done by theContractor.

If defects/deficiencies are observed after punch-listing, this will be the basis forthe Notice of Defects/Deficiencies to be issued by the MLGU to the Contractor.If no more defects/deficiencies are observed after punch-listing, use the latestInspection Report as basis for the issuance of Certificate of Completion.

5.9.1 Final Inspection Report A document that summarizes the narrativeof the findings of Inspectorate Team during the conduct of FinalInspection. It indicates defects/deficiencies duly rectified by theContractor after the one-year Defects Liability Period (DLP).

If defects/deficiencies are still observed and not rectified after the DLP,use the Inspection Report instead of this form.

If no more defects/deficiencies are observed, this document will be thebasis for the issuance of the Certificate of Final Acceptance.

5.10 Inspectorate Team Once the project reaches an accomplishment of ninety-five (95%) of the total contract amount, the procuring entity may create anInspectorate Team to make preliminary inspection and submit a punch-list tothe contractor in preparation for the final turn-over of the project in accordancewith Section 7 of Annex E of the 2016 Revised IRR of RA 9184.

5.11 Local Access Roads Under this Program, these are municipal and barangayroads that serve as the Mproducts, goods and services, and improve the connectivity of the MLGU roadnetwork. These shall include road safety measures, road drainage and otherroad components as reflected in the Project Menu.

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5.12 Local Bridges Under this Program, these are bridge components ofmunicipal and barangay roads, these may also include footbridges.

5.13 Local Government Support Fund (LGSF) Financial assistance to LGUs forthe implementation of priority programs and projects, as provided for in the FY2020 GAA.

5.14 Monitoring The method of collecting and analyzing information to determinets overall objectives.

Monitoring outputs are used to come up with sound management decisions.

5.15 Municipal Drug Rehabilitation Center A treatment and rehabilitation centerused exclusively for the non-residential (outpatient) treatment and rehabilitationof drug dependents. A Non-Residential Treatment and Rehabilitation Center isa facility that provides diagnosis, treatment, and management of drugdependents on an outpatient basis.

5.16 Notice of Authority to Debit Account Issued (NADAI) A document issuedby the Regional Bureau of the Treasury (BTr) to the Municipality informing themthat the subsidy has been deposited into the General Account of the MLGU.This document shall serve as the legal basis for the utilization of the NationalSubsidy.

5.17 Notice of Defects/Deficiencies A document (Annex S) issued by the MLGUto officially notify the Contractor (if By Contract) or the MLGU ImplementingOffice (if By Administration) of the noted defects/deficiencies and requiredcorrective repair works found during punch-listing. This document shall also beused to notify the Contractor of the noted defects/deficiencies within theDefects Liability Period.

5.18 Office of Project Development Services Assistance to MunicipalitiesProject Management Offices (OPDS-AM PMOs) The established three (3)sectoral offices under the OPDS of the DILG, namely 1) Water Supply andSanitation PMO; 2) Local Access Roads PMO; and 3) Disaster Risk Reductionand Other Infrastructure PMO, which shall be responsible for the overallprogram management of AM.

5.19 Potable Water The water that has passed the Potability Test/Water QualityTest, as certified by DOH.

5.20 Potability Test/Water Quality Test - Physical, chemical, and bacteriologicalexaminations of water from newly-constructed systems or sources before andduring construction, before they are operated and opened for public use, and aregular periodic conduct of the same after completion as part of the projectsustainability.

5.21 Projects The eligible projects mentioned in Section 4 of these Guidelines.

5.22 Project Completion The 100% physical accomplishment of the works, orgoods as per Contract/approved Program of Works. The project is deemedcompleted once the Certificate of Completion is issued by the MLGU.

5.23 Project Implementation Team (PIT) Refers to the team within the MLGUthat is tasked to implement the project and must ensure compliance to quality

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and safety standards for project implementation. The PIT shall be led by theMunicipal Engineer with, but not limited to, the following as members: theMunicipal Accountant, the Municipal Treasurer, and the Disaster RiskReduction Management Officer (DRRMO).

5.24 Project Monitoring Committee (PMC) The Team created or activated by theMLGU, through an Executive Order issued by the Local Chief Executive (LCE),tasked to monitor the projects under the Program.

5.25 Punch-listing Conduct of preliminary inspection by the Inspectorate Teamupon reaching 95% physical accomplishment.

5.26 Rainwater Catchment Facility A structure used to collect, convey, and storerain water from the roof surface area of a government-owned facility fordomestic use. It should have the four basic elements: (1) collection (catchment)area; (2) conveyance system consisting of pipes and gutters; (3) storagefacility; and (4) delivery system consisting of a tap or pump.

5.27 Regional Hubs (RHubs) Regional water and sanitation (WATSAN) Hubscomposed of higher educational institutions (universities/colleges), waterdistricts, the private sector, and NGOs that will assist the DILG in the capacitybuilding of the MLGUs.

5.28 Review Done by the persons concerned checking for the completeness andaccuracy of the submitted documents.

5.29 Sanitation and Health Facilities - Public sanitary and hygienic facilities thatensure safe stool disposal, proper handwashing behavior, and general hygienepractices in secured, government-owned properties.

5.30 Small Water Impounding Project (SWIP) - A water harvesting and storageearth-fill structure constructed across narrow valleys or depression areas thatconsist of an earth embankment spillway, outlet works, and canal facilities.

5.31 Undisbursed Funds Actual amounts unspent or unpaid out of the budgetedamount.

5.32 Validation Done by the persons concerned by visiting the actual project site.

5.33 Water Source - Can either be a groundwater source which flows out of theground, or withdrawing of water from underground aquifers. It should meet thequality and water demand (quantity) based on the minimum requirements of thewater system.

5.34 Water Source Validation The confirmation of viability of water source interms of quality and quantity to be developed for the intended beneficiarieswhich should be conducted during peak of dry season.

5.35 WATSAN (iWaSH) Council The local oversight body on Water Supply,Sanitation and Hygiene (iWaSH/WATSAN) matters of the whole locality. It alsoserves as governance and coordination body for the implementation of iWaSHat the local level.

6.0 GENERAL GUIDELINES

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6.1 Fund

6.1.1 LGSF-AM FY 2020 GAA (R.A. No. 11465)

The amount of Eleven Billion Seven Hundred Fourteen Million One HundredThirty-Three Thousand Pesos (Php11,714,133,000.00) is a National Subsidy toMunicipalities appropriated under the Local Government Support Fund-Assistance to Municipalities (LGSF-AM) Program pursuant to Special ProvisionNo. 1 under the LGSF of the GAA FY 2020.

6.1.2 Fund Allocation

As specified in Special Provision No. 1 of the LGSF in GAA FY 2020, budgetallocation for Municipalities is determined based on poverty incidence, resourceper capita, and share for good performance.

6.2 MLGU Counterpart

6.2.1 The MLGU shall provide cash counterpart to be deposited in the TrustAccount used for the Assistance to Municipalities projects with agovernment bank for the following cases, equivalent to:

6.2.1.1. the difference between the total project cost and the subsidyreceived by the MLGU as stated in the Notarized MLGUCertification of Compliance for Fund Release (Annex A ofthese Guidelines);

6.2.1.2. the amount for the remaining works of cancelled projectsreferred to in Section 6.4.9.2.a of these Guidelines, which isalso equivalent to the reverted amount mentioned in Section6.4.9.1, prior to the submission of the Notarized Affidavit ofUndertaking (Annex W of these Guidelines); and

6.2.1.3. the equivalent amount reverted to BTr for the remaining worksto complete the project when the project has commenced butis not physically completed by 31 December 2021, within six(6) months after the expiration of the fund validity.

6.2.2 The MLGU shall make available funds to finance, but not limited to, thefollowing:

6.2.2.1 All expenses incurred in the conduct of preliminary activities,such as, but not limited to:

a. social preparation;b. community consultations;c. securing clearances and permits;d. feasibility study/project proposal preparation;e. surveys (e.g. geo-resistivity, road surveys, etc.);f. Detailed Engineering Design (DED) preparation;g. soil investigation;h. procurement activities;i. water drilling explorations; andj. pump test, water quality test.

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6.2.2.2 Administrative costs in the supervision and monitoring of theproject during implementation, such as, but not limited to:

a. travelling expenses and rental of vehicles for projectmonitoring;

b. hiring of Project Engineers (if current manpower is notsufficient);

c. office supplies and materials;d. communication expenses;e. web development and maintenance; andf. installation of Community Billboards (Annex H) to be

installed in the premises of the Municipal Hall.

6.2.2.3 Expenses in attending trainings/ meetings/workshops relatedto project implementation; and

6.2.2.4 Expenses in the implementation of action plans as agreedupon after the said activities, including, but not limited to:

a. Conduct of Actual Infra-Audit; andb. Geotagging of Projects and Inventory of Local

Infrastructure Projects.

6.3 Fund Release

6.3.1 The release of funds under the Program shall be subject to thecompliance of the concerned MLGUs with the following conditions:

6.3.1.1 Governance Reform Requirements

The requirements of the DILG Seal of Good FinancialHousekeeping (GFH);

The requirements of the DILG Local DevelopmentCouncil (LDC) Functionality Assessment; and

Assessment of Public Financial Management (PFM)systems and adoption of the corresponding PFMimprovement measures.

6.3.1.2 Technical requirements:

Notarized MLGU Certification of Compliance for FundRelease (Annex A) per project prepared by the MunicipalEngineer (ME) and Municipal Planning and DevelopmentCoordinator (MPDC), signed by the Local ChiefExecutives (LCE);

Project implementation schedule (Annex C).

6.3.2. The latest data of Bureau of Local Government Supervision (BLGS) ofthis Department on the LDC Functionality and Good FinancialHousekeeping as officially published in the DILG Website shall be the

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basis of the OPDS through AM PMOs in determining the complianceof the MLGUs to the two (2) above-mentioned governance reform aswell as for the basis for the endorsement/s to the Department ofBudget and Management (DBM) the List of Eligible MLGUs for fundrelease.

6.3.3. The latest data of DBM on the Public Financial Management (PFM)System shall be the basis of the OPDS through AM PMOs indetermining the compliance of the LGUs as well as for the basis forendorsement to DBM the List of Eligible MLGUs for fund release.

6.3.4. The beneficiary MLGUs has until 30 September 2020 to comply withthe governance conditions stated in Section 6.3.1.1 of this Guidelines.Likewise, the submission of documentary requirements stated inSection 6.3.1.1 and 6.3.1.2 of this Guidelines by the MLGU to DILGthrough channel for the release of the fund shall be until 30 October2020.

6.3.5. The submission of the Notarized MLGU Certification for FundRelease (Annex A) shall be through DILG channel. The ProvincialDirector (PD) shall recommend to Regional Office (RO) the list ofMLGUs with Notarized MLGU Certification for Fund Release. The RO,through the Project Development and Management Unit (PDMU), shallreview and confirm the veracity of the Certifications submitted.

6.3.6. Upon confirmation, the DILG-RO shall endorse the projects of eligiblemunicipalities for fund release to the Office of the Undersecretary forLocal Government (OUSLG), through the Office of ProjectDevelopment Services (OPDS), not later than 5:00 in the afternoon of30 October 2020 using Annex D of these Guidelines. Theendorsement shall include scanned copies of the Notarized MLGUCertification for Fund Release, as stipulated in Section 6.3.1.2. Forwater supply, Source Validation Report (SVR) shall be attached, usingAnnex B of these Guidelines.

6.3.7. The DILG-Central Office (CO), through the Office of ProjectDevelopment Services (OPDS), shall review the List of Projects ofEligible Municipalities for Fund Release (Annex E) as submitted bythe ROs, and subsequently recommend to the Secretary of the Interiorand Local Government (SILG), through the USLG, endorsing toDepartment of Budget and Management (DBM) the list of Projects ofthe Eligible Municipalities for fund release.

6.3.8. The MLGUs that did not comply with the requirements for fund releaseas stipulated in Section 6.3 of this Guidelines shall no longer beendorsed to DBM.

6.3.9. The DILG-CO shall disseminate to the DILG-ROs the List of Projectsof the Eligible Municipalities endorsed to DBM. The DILG-RO shallissue Notice of Eligibility (Annex F) to the concerned Municipalitiesinforming them of their eligibility to receive the fund allocation for theirapproved projects.

6.3.10. Upon receipt of the Notice of Eligibility (Annex F), the MunicipalTreasurer shall regularly monitor whether the funds intended for their

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approved projects have been deposited into their General FundAccount by the BTr, through the issuance of NADAI.

6.3.11. The procedure for the release of fund from DBM through the BTr to theMunicipalities follows the established procedures of DBM and BTr. TheBTr will furnish copies of NADAI to the DBM, COA-Regional Offices,and DILG-OPDS and Regional Offices (ROs) concerned, as well asthe Local Auditors in-charge of the Municipalities, or the RegionalOffice may request copy of the NADAI from the BTr.

6.4 Fund Management

6.4.1 Pursuant to the General Provisions of the GAA FY 2020, the fund shallbe used exclusively for the AM Projects and shall be used exclusivelyin the identified LGUs.

6.4.2 The amount released to the Municipalities shall be recorded as TrustFund to be used for its specified purpose. Moreover, the MLGU shallmaintain a separate subsidiary ledger for each project to record eachtransaction. Funds which are undisbursed, as mentioned in Section6.4.9, shall be reverted to the BTr.

6.4.3 Within 30 days reckoning from the date of the NADAI, the Municipality,through the Municipal Treasurer, shall confirm with the DILG-RO,through the DILG Provincial Office (DILG-PO) and concernedMLGOO, that the funds have been transferred from the GeneralAccount to the Trust Fund Account intended for the project, using thetemplate shown under Annex G (Receipt of FY 2020 AM Fund) hereof.

6.4.4 The Municipality shall exclusively utilize the fund for its intendedpurpose as indicated in the NADAI and in accordance with the existinggovernment budgeting, procurement, accounting and auditing laws,rules and regulations.

6.4.5 In the preparation of Approved Budget for the Contract (ABC), theMLGUs shall apply the Revenue Memorandum Circular 85-2017 dated11 October 2017 issued by Bureau of Internal Revenue (BIR) as basisfor the appropriate rate of Value Added Tax (VAT) of 12%.

6.4.6 Consistent with Section 6 of Special Provisions of GAA FY 2020,implementation of and payments for infrastructure projects shall beuntil 31 December 2021 only. After this period, any unreleasedamount shall lapse, while undisbursed fund shall be reverted to theBTr.

6.4.7 Prohibited Use of Funds

The AM Fund shall not be used:

6.4.7.1 For any purpose other than the project/s to which the fundwas released not specified in the NADAI;

6.4.7.2 To fund projects already covered by other funds; and

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6.4.7.3 For the payment of Personal Services2 expenditures (i.e.,payment of salaries, including honoraria, allowances,bonuses, and similar forms of compensation) and all otheritems indicated in Section 6.2.2 of these Guidelines.

6.4.8 The MLGU may use the difference between the Approved Budget forthe project and Contract Price to finance Variation Orders for the sameproject, subject to Section 6.5.6.4 of this Guidelines. Variation Ordermentioned herein strictly refers to the Variation Orders as defined andas allowed in Item 1 to 3, Annex E4, of the 2016 Revised ImplementingRules and Regulations of R.A. No. 9184.

6.4.9 Reversion of Funds

The MLGU shall be responsible for the following:

6.4.9.1 Consistent with Section 6 of the Special Provisions of theLGSF under the Allocations to Municipalities in the GAA FY2020, any undisbursed funds after 31 December 2021, shallbe reverted to the BTr by the recipient Municipalities.

6.4.9.2 In case of non-completion of projects by 31 December 2021,the MLGU shall issue a Notarized Affidavit of Undertaking(Annex W), signed by the LCE, for the following:

a. Allocate local funds equivalent to the reverted amountfor the remaining works in accordance with Section6.4.9 of this MC;

b. Complete the project not later than the date agreedupon by the MLGU and the concerned DILG-RO;

c. Submit Project Completion Report (Annex M) within 30calendar days to DILG-RO through the DILG-PO afterthe issuance of Certificate of Completion; and

d. Assume accountability and liability under applicablelaws and issuances in case of non-compliance with thisUndertaking.

6.4.9.3 For completed projects, the Municipality shall revert to theBTr the undisbursed funds after the payment of the FinalBilling as recognized by the Municipal Accountant within thefiscal year.

6.4.9.4 If, at any point in time before the lapse of the fund validityperiod of 31 December 2021, the MLGU determines that thefunds cannot be disbursed (e.g. when the program or projectcannot be implemented for any reason or the same hasbeen funded from other sources), the total amount receivedby the MLGU for the project shall be immediately reverted tothe BTr.

2 Sec. 306(k) of the Local Government Code of 19914 Contract Implementation Guidelines for the Procurement of Infrastructure Projects of the Revised IRR of 9184

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6.4.9.5 The DILG-RO shall demand MLGUs, after substantialnotification and documentation, to revert the fundsequivalent to the remaining works for specific project/s whichhave received the Notice of Project Cancellation (AnnexT) and have continually digressed conformance to any or allprovisions of these Guidelines.

In case of cancellation of on-going projects, the MLGU shallissue Notarized Affidavit of Undertaking using Annex Wand submit to DILG RO through channels.

6.4.9.6 The DILG-RO shall immediately deny requests and demandthe immediate reversion of funds for the following situations:

a. Request for realignment because the proposed projecthas been funded from other sources;

b. Request for change of project type e.g. Potable WaterSupply System project to Local Access Road project;

c. Request for change of location of project other thanthose indicated in the NADAI;

d. Request for realignment of funds to a new project;

e. Request for splitting of funds to accommodate two ormore projects or project locations;

f. Request for merging of funds released for two or moreprojects to finance the implementation of only oneproject (e.g. funds released for Water System forBarangay A and Barangay B, and proposed to be usedonly for Barangay A or only for Barangay B); and

g. Request for extension of project implementation whichgoes beyond 31 December 2021.

6.4.9.7 For any reversion of funds, the Municipal Accountant shallinitiate the preparation of vouchers and the MunicipalTreasurer shall cause the remittance of the undisbursedfunds to the BTr.

`The MLGU shall provide copy of the said transaction withinfifteen (15) calendar days to DILG-RO through DILG-PO andconcerned MLGOO.

6.5 Project Implementation

6.5.1 Pursuant to Section __ of the General Provisions of the FY 2020 GAA,the following requirements shall be observed in the implementation ofinfrastructure projects:

6.5.1.1 The locations, areas, or sites of all infrastructure projects arenot included in the critical geo-hazard areas or no build

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zones identified or certified by the Mines and Geo-SciencesBureau (MGB);

6.5.1.2 The standards of construction, rehabilitation, improvement,or repair of all infrastructure projects in all areas and zonesare consistent with the rules determined by the DPWH,which shall consider, among others, the structural strengthand climate resilience required for infrastructure projects inall areas and zones; and

6.5.1.3 The planning and construction of all infrastructure projects tobe implemented within the National Integrated ProtectedArea System (NIPAS) are done in a way that eliminates orminimizes the risk of biodiversity loss while thespecifications thereon are in accordance with thosedetermined by the DPWH, in coordination with the DENR.Major infrastructure projects may only be undertaken in saidareas if intended to enhance biodiversity. The DPWH and allother agencies shall take into account climate riskinformation and green building standards to be issued by theClimate Change Commission (CCC) in the planning,identification of site, design, construction, engineering andrenovation of government buildings and facilities, includingschools and hospitals, as stipulated in Section 26 of theGeneral Provision of the GAA FY 2020.

6.5.2 The Mayor, as the LCE of the MLGU, shall be accountable for theoverall implementation of the projects.

6.5.3 The Municipal Engineer shall ensure that the Detailed EngineeringDesigns (DED), technical specifications, and construction of projectsare in accordance with the AM Project Menu, NG standards, relevantprovisions stipulated in the FY 2020 GAA (Annex AB) and within therange of costs of materials, labor, equipment, etc., and project durationof similar projects being implemented by a National GovernmentAgency (NGA) in the same locality.

6.5.4 All . MLGU

two (2) failed biddings and failed negotiated bidding, subject toAppendix 1 (Revised Guidelines for the Implementation ofInfrastructure Projects by Administration) of R.A 9184.

6.5.5 Procurement by the MLGU

6.5.5.1 Pursuant to Section 18 of the General Provisions of the FY2020 GAA, all agencies of the government shall strictlyadhere to the provisions of R.A. No. 9184, its IRR, andGPPB guidelines in the procurement of goods, infrastructureprojects, and consulting services.

However, the options for the Design and Build Scheme willnot apply to the projects under the AM program since theDED and other technical documents are requirements priorto fund release.

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6.5.5.2 Consistent with the R.A. 9184 (Procurement Law), topromote transparency and achieve efficiency in theprocurement process, the MLGUs are enjoined to:

a. Use the Philippine Government Electronic ProcurementSystem (PhilGEPS) as the primary and repository ofinformation on government procurement.

b. Use the latest standard bidding documents, 5th Edition,for procurement of works issued by the GPPB whichcan be accessed at www.gppb.gov.ph.

c. Conduct a mandatory review and evaluation of theterms, conditions, and specifications in the BiddingDocuments, including its cost estimates, by the Bidsand Awards Committee (BAC) in the event of a failedbidding.

d. Conduct re-bidding and negotiated procurement of aproject immediately, but should not exceed fifteen (15)days after the declaration of the first failure of biddingunder Section 35 of RA 9184 and its 2016 Revised IRR.The period may be extended up to 30 days uponapproval of the Head of the Procuring Entity (HoPE), asstipulated in Annex A of GPPB Resolution No. 30-2016.

e. Ensure that the following are included in the biddingdocuments:

The winning bidder compliance with the existinglabor laws and standards, specifically thesubmission of the approved Application forConstruction Safety and Health Program (CSHP),in compliance with R.A. 11058 (An ActStrengthening Compliance with OccupationalSafety and Health Standards Providing Penaltiesfor Violations Thereof) and the Department of Laborand Employment (DOLE) Department Order No.13; and

Inclusion as provision in the Contract of Agreementthe Contractor submission of the monthlyStatement of Works Accomplished (SWA)

f. Cause the winning bidder to post the performancesecurity consistent with Section 39 of the Revised IRRof R.A. 9184

g. Ensure that the Notice to Proceed (NTP) is issued andduly received by the successful bidder within seven (7)calendar days from the date of approval of the Contract,consistent with Section 37.4.1 of the 2016 Revised IRRof R.A. 9184

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h. Ensure that the NTP and the approved contract isposted in the PhilGEPS and in the website of the MLGUwithin fifteen (15) calendar days from the issuance ofthe NTP.

6.5.5.3 To invite a representative of a duly accredited CSO, inaccordance with the Special Provisions of the FY 2020GAA, to observe in the procurement process. The MLGUmay also invite the concerned MLGOO.

6.5.5.4 The Municipality shall provide an electronic or hard copy ofthe duly received NTP to DILG-PO, through the concernedMLGOO, within seven (7) calendar days from the date ofreceipt by the Contractor of the NTP.

6.5.6 Project Execution

6.5.6.1 Adherence to National Government Standards andPolicies

The MLGU shall abide by the standards and policiesset by the NG, including the AM Project Menu, whichare applicable to all phases of project preparation andimplementation.

The DILG-RO shall ensure that these standardsand policies are considered during the review andare being observed during actual implementation bythe MLGU.

6.5.6.2 The Mayor, as the LCE of the MLGU, through the Office ofthe Municipal Engineer, shall have the primaryresponsibility in ensuring the quality of works and that theimplementation of the project shall be in accordance withthe approved designs, plans, and specifications consistentwith the relevant provisions of applicable laws, circulars,and issuances.

6.5.6.3 The Mayor, as the LCE of the MLGU, shall mobilize theexisting PIT as defined in the DILG M.C. 2018-104, led bythe ME, which shall be responsible for providingsupervision in the project implementation. The ME, ashead of the PIT, shall be accountable in ensuring that eachproject will be completed on time and within the contractcost, based on the approved plans and specifications,adhering to National Standards in design and quality ofworkmanship. Without relinquishing responsibility, the MEmay assign a Project Engineer in each project to supervisethe day-to-day activities in each project site.

The responsibilities of the ME include, but are not limitedto, the following:

a. Supervise regularly the progress of work;

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b. Cause the Contractor to submit a request forinspection prior to any concrete pouring works usingthe pro-forma for work request and/or concretepouring. (Annexes I, I-1, J and J-1).

Two (2) days prior to the start of every majoractivity; and

One (1) day prior to the concrete pouring ofevery major activity.

b. Cause the Contractor to submit a Request for WorkInspection (Annex I).

i. Two (2) days prior to the actual date ofinspection of every major activity; and

ii. One (1) day prior to the concrete pouring ofevery major activity.

Concrete Pouring Permit (Annex J) shall be attachedto the request for inspection if Section b.2 isapplicable.

c. Be present during the actual construction activitiesmentioned in item (b). The list of major activities forevery project type is shown in Annex K;

d. Verify and check the quantities of items of workaccomplished by the Contractor as against theapproved plans, specifications, and programs of workand immediately notify the Contractor of anyobserved deficiencies;

e. Verify and check the quality of workmanship of theContractor as against the approved plans,specifications, and POWs, and National Standards,and immediately notify the Contractor of anyobserved deficiencies;

f. Verify and check whether quality control plan isobserved, quality tests are conducted, andconstruction logbook is maintained at the project site,and immediately notify the Contractor of anyobserved deficiencies;

g. In case of any observed deficiencies duringconstruction, issue Site Instruction (Annex N) to theContractor for rectification;

h. Initiate regular coordination meetings with theContractor to address all pending issues andconcerns regarding the project;

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i. Cause the Contractor to submit monthly Statement ofWork Accomplished (SWA). If project is ByAdministration, prepare the SWA;

j. Verify and recommend for approval of SWAsubmitted by the Contractor. If there is variancebetween the actual work accomplished and the SWA,notify the Contractor;

k. Review and recommend for approval the progressand final billings of the Contractor;

l. Secure/compile records of project (i.e. photographstaken before, during and after, as-staked, as-builtdrawings of the completed projects, test results, workrequest, concrete pouring permit, weather charts,and other pertinent documents related to projectimplementation), and make available duringinspections or as requested;

m. Ensure that the Contractor submits a Certificate ofCompliance on the labor requirement as provided forin Section 5 of R.A. 6685; and

6.5.6.4 Variation Order

a. Any variation order shall strictly comply withAnnex E (Contract ImplementationGuidelines for the Procurement ofInfrastructure Projects) of the 2016 RevisedIRR of R.A. No. 9184, and the provisions ofthe Contract. Any variation order andcontract time extension shall be approvedby the LCE.

b. If the variation order will require additionalcost, the said amount may be chargedagainst the unutilized allocation which refersto the difference between the approvedallocation for the project against theapproved contract amount.

c. If the variation order plus the approvedContract exceeds the allocation for theproject, the Municipality shall provideadditional counterpart as stipulated inSection 6.2.

d. The MLGU shall inform the concernedDILG-RO, through channels, of anyapproved variation order and contract timeextension, and shall ensure that all relateddocuments are readily available duringmonitoring by DILG personnel and/or asmay be requested.

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6.5.6.5 The MLGU shall ensure that:

a.or guarantee instrument equivalent to thebalance of the advance payment not yetrecouped;

b.throughout the approved project duration,including approved time extension; and

c. The performance security by Contractor isvalid/updated within the approved projectduration including approved time extension.

6.5.6.6 Termination of Contract

Consistent with Annex I of the Revised IRR ofR.A. 9184, the MLGU may terminate the contractwhen any of the following conditions occur in theduration of its implementation:

For infrastructure projects:

a.project is on-going, it has incurred negativeslippage of fifteen percent (15%) or more inaccordance with Presidential Decree 1870;

b.contract time has expired, it has incurred anegative slippage of ten percent (10%) ormore in the completion of the work; or

c. The Contractor:

i. abandons the contract works, refuses orfails to comply with a valid instruction ofthe MLGU or fails to proceedexpeditiously and without delay despite awritten notice by the MLGU;

ii. does not actually have on the project sitethe minimum essential equipment listedon the Bid necessary to prosecute theWorks in accordance with the approvedwork plan and equipment deploymentschedule as required for the project;

iii. does not execute the Works inaccordance with the contract orpersistently or flagrantly neglects to carryout its obligations under the contract;

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iv. neglects or refuses to remove materialsor to perform a new work that has beenrejected as defective or unsuitable; or

v. sub-lets any part of the contract workswithout approval by the MLGU.

For contracts for Goods:

The MLGU may terminate a contract for defaultwhen any of the following conditions attend itsimplementation:

a. Outside of force majeure, the Supplier failsto deliver or perform any or all of theGoods within the period/s specified in theContract, or within any extension thereofgranted by the pursuant to a request madeby the Supplier prior to the delay, and suchfailure amounts to at least ten percent(10%) of the contract price;

b. As a result of force majeure, the Supplier isunable to deliver or perform any or all ofthe Goods, amounting to at least tenpercent (10%) of the contract price, for aperiod of not less than sixty (60) calendardays after receipt of the notice from theMLGU stating that the circumstance offorce majeure is deemed to have ceased;or

c. The Supplier fails to perform any otherobligation under the Contract.

6.5.6.7 Blacklisting of the Contractor

The MLGU is encouraged to initiate the blacklistingprocess in accordance with Appendix 17 of theRevised IRR of R.A. 9184 (Uniform Guidelines forBlacklisting of Manufacturers, Suppliers,Distributors, Contractors and Consultants).

6.5.6.8 In case of delay in the implementation of theproject, the MLGU shall be guided with theprovisions stipulated in R.A. 9184 and DILG MC2018-104.

6.5.6.9 Imposition of Liquidated Damages

In case the Contractor fails to complete the workwithin the specified contract duration and anyapproved time extension, the MLGU shall imposeliquidated damages (LD) in accordance with Annex

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E of the 2016 Revised IRR of R.A. No. 9184. Fundsobtained from the imposition of LD shall accrued tothe Trust Fund Account and shall form part asunutilized fund which shall be reverted to the BTron or before 31 December 2021, whichever comessooner.

6.5.6.10 The MLGU, through the PIT, shall inform the DILG-RO/PO that the project has been substantiallycompleted (95%).

6.5.7 Poject Completion

6.5.7.1 The Project is deemed physically completed once theMLGU issues a Certificate of Completion (Annex Q).

6.5.7.2 The MLGU, through the Municipal Accountant, shallrecognize the completed project as asset in the Book ofAccounts of the Municipality pursuant to GovernmentAccounting Manual Volume II for other infrastructureprojects, and COA Circular 2015-008, and submit proofto the DILG-PO, through the MLGOO, that the completedproject has been booked as asset.

6.5.7.3 The MLGU, through the LCE, shall ensure that there is aMaintenance Plan after the completion of each projectincluding the required provision to implement the saidplan.

6.5.7.4 Upon Issuance of Certificate of Completion, the MLGUshall prepare, within thirty (30) calendar days, the ProjectCompletion Report (Annex M) and submit the same tothe DILG-PO through the MLGOO.

6.5.7.5 The MLGU shall ensure that the warranty security by theContractor is valid/updated throughout the warrantyperiod.

6.5.7.6 The MLGU shall ensure that the ten percent (10%)Retention Money is withheld to cover all defects anddeficiencies, including maintenance costs for one (1) yearafter project completion. An alternative to the ten percent(10%) final retention would be the posting of the WarrantySecurity, as stipulated in Section 62 of the Revised IRRof R.A. 9184.

6.5.7.7 The MLGU shall issue a Certificate of Final Acceptance(Annex R) after the one-year Defects Liability Period, andafter all defects and deficiencies, if any, have beencorrected.

6.5.7.8 From Final Acceptance, the MLGU shall continue toobserve the Warranty provisions against structuraldefects and failures, as stipulated in Section 62.2.3 for

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infrastructure projects, and as stipulated in Section 62.1for goods, of the Revised IRR of R.A. 9184.

6.5.8 Information and Publicity of Projects

6.5.8.1 As MLGU counterpart, within 30 days reckoningfrom the date of the NADAI, the Municipality shallinstall the Community Billboard within thepremises of the municipal hall in accordance withthe specifications prescribed in Annex H(Community Billboard) hereof.Community Billboards must contain all DILGimplemented projects under GAA FY 2020.

MLGU shall include in the Community Billboards

completed under the FY 2019 LGSF-AM and FY2019 LGSF-SALINTUBIG, and ensure that theproject status is updated on a monthly basis.

6.5.8.2 The MLGU shall ensure the installation of theProject Signboard/s by the Contractor at eachproject location in accordance with COA CircularNo. 2013-004 dated 30 January 2013 and ensurethe regular updating thereof.

Pursuant to Section 18 of the General Provisionsof the GAA FY 2020, the Community Billboardsand Project Signboards should not bear the name,image, and logo of candidates or public officialson government projects.

6.5.8.3 The MLGU shall comply with the reportorial andposting requirements stipulated in the followinglaws, to wit:

a. Rule XI Section 37.4.2 of the 2016 RevisedIRR of R.A. No. 9184 and any relevantpolicies issued by the GPPB; and

b. Consistent with the Full Disclosure Policy(FDP) of the DILG, the said reports shall beposted on the Mthree (3) conspicuous public places in thelocality within twenty (20) days from the endof each quarter;

6.5.7.4. The LCEs and web administrators or theirequivalent shall be responsible for ensuringcompliance with Items a to e of Section 6.5.8.3 ofthis Guidelines.

6.5.9 Project Monitoring

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Project Monitoring shall be in accordance with the provisionsstipulated in DILG MC 2018-104 dated 05 July 2018.

6.5.10 Project Reporting

6.5.10.1 DILG Reporting

DILG Reporting shall be in accordance with theprovision of the DILG MC 2018-114 dated 20 July2018, also known as the Guidelines on theImplementation of SubayBAYAN(http://subaybayan.dilg.gov.ph).

6.5.10.2 LGU Reporting

The MLGU shall comply with the reportorial andposting requirements as stipulated in the FY 2020GAA (Section 6 of the Special Provisions), R.A.9184, and the DILG Monitoring Guidelines.

The MLGU shall post the status of projectimplementation in a monthly basis in theSubayBAYAN (http://subaybayan.dilg.gov.ph).

7.0 RESPONSIBILITIES AND ACCOUNTABILITIES

7.1 Municipal Local Government Units (MLGUs)

7.1.1 The LCE and the concerned local officials shall be fullyresponsible and accountable for the proper disbursement andutilization of the subsidy. They will ensure the following:

7.1.1.1 That the said funds are used for its intendedpurpose as indicated in the NADAI and asprovided for in the GAA FY 2020;

7.1.1.2 That the required project documents arecomplete, available, and can be readily verified;

7.1.1.3 That the projects submitted for funding are shovel-ready, and that the timeliness and quality of worksin the implementation of the projects are inaccordance with the AM Project Menu,DED/POW, technical specifications, andconsistent with these Guidelines and the relevantprovisions of applicable laws, circulars, andissuances; and

7.1.1.4 That no duplication and/or overlapping of fundingwill occur. As such, the Municipality shallimmediately inform the DILG-RO if it has receivedfunding from other sources for the same programsof projects.

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7.1.2 The MLGU, through the Municipal Health Officer, shall ensure thatupon completion, the water supply system shall pass the PotabilityTest/Water Quality Test requirements set by the PhilippineNational Standard for Drinking Water (PNSDW).

7.1.3 The specific responsibilities of the MLGU are stipulated in theapplicable provisions of these Guidelines, as found in:

7.1.3.1 Section 6.2 for the MLGU Counterpart;

7.1.3.2 Section 6.4 for the Fund Management; and

7.1.3.3 Section 6.5 for Project Implementation, includingprocurement, execution, information and publicityof the project, monitoring, and reporting.

7.1.4 Adherence to the applicable provisions of DILG MC 2018-104Monitoring Guidelines.

7.1.5 The Municipality shall aim to create and maintain an inventory oflocal infrastructure and facilities which shall support betterplanning and programming, which will include, but not limited to,the following:

7.1.5.1 Local roads and bridges which may be reflected inthe LRNDP of the Provincial Government;

7.1.5.2 Existing and potential water sources;

7.1.5.3 Water supply systems (functional and non-functional) including management systems (e.g.LGU-managed, BAWASA, etc.);

7.1.5.4 Sanitation and Health facilities;

7.1.5.5 Results of Infrastructure Audit;

7.1.5.6 Existing and proposed, including its condition:a. Evacuation Center (permanent and non-

permanent);b. Public Market;c. Public Cemetery;d. SWIP;e. Drug Rehabilitation Center (for out-patient)

7.1.5.7 DRR-related equipment

7.1.6 The MLGU, through the LCE, shall issue an Executive Ordercreating or reactivating the following, with the minimumcomposition, to wit:

7.1.6.1 Project Monitoring Committee (PMC), ascreated through DILG MC 2019-188, or anyamendment thereafter, wherein the MLGOOcannot be appointed as the chairperson.

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Furthermore, it is suggested that the MunicipalPlanning and Development Coordinator (MPDC)be appointed as the Chairperson of theCommittee. The PMC shall submit a monthlyreport to the MDC and copy furnish the MLGOO.

7.1.6.2 Inspectorate Team, with the ME or his assignedrepresentative/Project Engineer as theChairperson, whose members shall be selectedfrom the following offices, depending on thenature or type or project:

Municipal Account O);Municipal Health Office (MHO);

Municipal Disaster Risk and ReductionManagement Office (MDRRMO); andGeneral Services Office (GSO).

7.1.6.3 Project Implementation Team (PIT), with theMunicipal Engineer (ME) or his assignedrepresentative/Project Engineer as theChairperson, whose members shall be selectedfrom the following offices, depending on the natureor type or project:

Municipal Disaster Risk ReductionManagement Office (MDRRMO);

ccO);

holding a plantilla position.

7.2 DILG

7.2.1 Central Office (CO)

Three (3) sectoral PMOs, namely 1) Water Supply and Sanitation(WSS) PMO; 2) Local Access Roads (LAR) PMO; and 3) DisasterRisk Reduction and Other Infrastructure (DRROI) PMO, havebeen established in the DILG-CO under the OPDS, shall beresponsible in overseeing the overall project implementation,monitoring and evaluation, including the provision of technicalassistance and capacity development for Municipalities, in closecoordination with DILG-ROs, DBM and line agencies, and otherstakeholders. The PMOs shall specifically be responsible for thefollowing:

7.2.1.1 Oversight

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a. Formulate/Update and revise, as necessary,the Implementation Guidelines in coordinationwith DBM and other stakeholders;

b. Overall physical and financial planning incoordination with the DILG-ROs;

c. Based on the endorsed list of eligibleMunicipalities to DBM, inform the concernedMunicipalities through the DILG-ROs of thefunds to be released by the DBM;

d. Monitor Program Accomplishments at theRegional level;

e. Prepare and submit consolidated monthly,quarterly, annual and other reports to the DILGManagement and other oversight and partneragencies as provided for in the GAA FY 2020Provisions;

f. Conduct regular consultations/dialogues withthe DBM, other agencies, and stakeholders onmatters related to project implementation;

g. If the circumstances warrant, notify the MLGU,copy furnished Municipal/Regional COA andDILG-RO, in any noted deviation to theprovisions of this Guidelines and non-compliance with the recommended correctiveactions during implementation; and

h. Overall monitoring and evaluation:

Ensure the implementation of the Results-based Monitoring and Evaluation (RbME)framework and system to determine theoutcome of the project;

Track the implementation of the risk-basedmonitoring system to improve projectperformance, and monitor the complianceof DILG-RO to its responsibilities, amongothers, as stated in DILG MC 2018-104;

Through the monthly reports published inthe SubayBAYAN, conduct RiskAssessment and analysis as basis formanagement actions including provision ofTechnical Assistance;

As needed, conduct project monitoringvisits on projects identified as critical; and

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If warranted, assist the DILG-ROs in theconduct of detailed assessment for non-functional projects based on the result ofthe Rapid Subproject SustainabilityAssessment (RSSA);

Oversee the implementation of theQuarterly Monitoring Plan at the RegionalLevel;

Provide support to operations in the ratio of70% for ROs and 30% CO to ensure hiringof sufficient staff at the DILG Regional andProvincial Level.

7.2.1.2 Capacity Development

a. Develop and implement Capacity Developmentinterventions on project implementation andgovernance reforms related to the sectorscovered by the Program, for DILG FieldOffices, MLGUs, and service providers;

b. Develop and maintain a database of conductedCapacity Development interventions;

c. Develop evaluation tools and conduct anevaluation to measure the outcomes ofconducted Capacity Developmentinterventions; and

d. Prepare customized reference materials andmanuals for local infrastructure projects suchas procurement, construction management,safety and health, quality management, waterand sanitation, and maintenance for verticalstructures, among others.

7.2.1.3 Technical Assistance

a. Provide advisory and technical assistance toDILG Field Offices and Municipalities in thedevelopment, implementation, operation, andmanagement of projects, as needed; and

b. Disseminate national standards for qualityassurance and control in the implementation ofprojects to DILG-ROs and Municipalities.

7.2.1.4 Communications and Advocacy

a. Provide support to DILG-ROs in thedocumentation of good practices in theimplementation of the Program;

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b. Develop, update, and maintain information,education, and communication (IEC) materialsabout the program and the accomplishmentsfor tri-media including social media and theDILG website at the national level; and

c. Spearhead the conduct of Knowledge Fora toshowcase good practices in the implementationof the Program at the National level.

7.2.2 Regional Office (RO)

The RO shall take the lead in the progress monitoring andevaluation and is responsible in overseeing the implementation ofthe program at the regional level to ensure efficiency andeffectiveness.

This includes the provision of technical assistance, monitoring andevaluation, and capacity development for MLGUs.

7.2.2.1 Regional Director (RD) shall:

a. Oversee the AM Program implementation inthe Region to ensure that the AM ProjectMenu, national standards, and policies areconsidered during project preparation andactual implementation by the Municipalities;

b. Ensure the dissemination of program policiesissued by the DILG Management, includingother issuances related to projectimplementation, national standards for qualityassurance;

c. Ensure that the MLGUs are well-informed ofand are able to comply with the policies andother issuances related to projectimplementation;

d. Report to the DILG-USLG, copy furnish OPDS,the status of program implementation;

e. Issue 3rd Warning Letter and Notice of ProjectCancellation pursuant to DILG MC 2018-104;

f. Ensure that the monthly reports submitted bythe concerned DILG-POs are in accordancewith DILG MC 2018-114;

g. Review the Regional Risk Assessment Reportsprepared by the PDMU or its equivalent, andtrack possible interventions/ actions at the ROlevel;

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h. Submit to the USLG, copy furnish OPDS, thecopy of the Regional Risk Assessment Reportswith information on the interventions/actionstaken by the Region, if any;

i. Mobilize the PDMU for provision of technicalassistance to the MLGU;

j. Ensure submission by the Regional Accountantof the Financial Accomplishments Reports ofthe utilization of M&E fund every 10th day of thefollowing month to DILG-FMS, copy furnishedOPDS;

k. Mobilize Information or CommunicationOfficers in the Region to document goodpractices in the implementation of the Programwithin the region;

l. Ensure that the concerned DILG-POsdischarge their responsibilities in programimplementation as stated in Section 7.2.2.3and provide assistance, if needed;

m. Ensure the inclusion in the regional ManCommeeting the status of LFPs and/or conductregular meetings with Field Officers and/orconcerned MLGUs to discuss and resolveissues regarding project implementation; and

n. On behalf of the DILG, enter into a PartnershipAgreement with RHubs and other accreditedCSOs and POs for the provision of TechnicalAssistance and Capacity Development to theMLGUs and in the implementation of CSOparticipation.

7.2.2.2 Project Development and Management Unit(PDMU) or its equivalent Unit

The PDMU or its equivalent unit shall serve as theProject Management arm of the Program at theregional level. It shall be responsible for thefollowing, which are reflected in the SPMS as theircommitments and/or in the Terms of Reference(TORs) of its Staff:

Planning and Pre-Implementation:

a. Disseminate program policies issued by theDILG Management, including other issuancesrelated to project implementation, and nationalstandards for quality assurance;

b. Conduct orientation or one-on-one briefing to

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ensure that the MLGUs are well-informed ofand are able to comply with the policies andother issuances related to projectimplementation;

c. Validate and confirm the veracity of thedocuments submitted by the MLGUs, whichinclude, but are not limited to, the following:

1. Notarized MLGU Certification for FundRelease (Annex A);

2. Confirmation on the Receipt of Fund(Annex G);

3. Notarized MLGU Certification ofCompliance to Project Implementation; and

4. Project Implementation Schedule (AnnexC).

In validating and confirming Items 1 to 4, usethe Validation Form (Annex U).

d. Conduct regional physical and financialplanning in coordination with DILG-POs; and

e. May attend bid openings, if warranted.

Progress Monitoring and Evaluation:

a. Field or mobilize Engineers assigned in the ROto provide technical assistance to the MLGU, ifnecessary;

b. Maintain regional database and electroniccopies of MLGU submissions transmitted bythe POs and be made available duringinspection;

c. Prepare a quarterly regional monitoring planbased on agreed deliverables. Submit asummarized accomplishment report to DILG-CO-OPDS every last month of the ensuingquarter;

d. Field or mobilize Engineers assigned in the ROto monitor the projects based on the monitoringplan. Use the Project Monitoring Templateswhen conducting site visits and spot checksduring project implementation, and monitor, butnot limited to, the following:

Implementation timelines;

Availability of construction materials on-site, in accordance with the approvedplans and specifications;

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Availability of appropriate equipment on-site, in accordance with the EquipmentSchedule and manpower;

Works are in accordance with theapproved Plans and Specifications;

Quality test conducted and constructionlogbook is being maintained;

Proper waste disposal is done inaccordance with prescribed standard setby MENRO; and

Health and Safety standards set by DOLEshall be implemented.

e. In compliance with the provisions of the DILGMC 2018-114 (Guidelines in theImplementation of SubayBAYAN) relative tothe progress reporting of the projects:

Ensure that the information on theprogress of implementation such asphysical accomplishment in percent basedon the monthly Statement of WorkAccomplished (SWA) and FinancialAccomplishment or Disbursement will bereported in the SubayBAYAN on a monthlybasis; and

Ensure that the information provided by theMLGOOs on a monthly basis has beenvalidated on-site.

f. Consolidate and analyze all Provincial RiskAssessment Reports submitted by the PDs,and prepare and submit to the RD theRegional Risk Assessment Reports usingDILG Monthly Risk AnalysisCompliance with Recommended Actions toIdentified Issues and Concerns (Annex AA).Identify and recommend to the RD possibleinterventions/actions to be taken at the ROlevel and those to be endorsed at the DILG-COlevel;

g. For projects that remain critical after theissuance of the 2nd Warning Letter by the PD,recommend to RD the issuance of the 3rdWarning Letter;

h. Facilitate the conduct ofconsultations/dialogues at the regional level

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with DILG-POs, MLGUs, and otherstakeholders to resolve issues on projectimplementation;

i. If warranted, participate in the conduct ofpunch-listing and final inspection to ensure thatall issues and concerns were addressed beforethe issuance of corresponding certifications;

j. Monitor reversion of undisbursed funds by theMLGUs as provided for in Section 6.4.9 ofthese Guidelines; and

k. Assist the DILG-PO on the Conduct of RSSAone (1) year after the completion of projects, oras necessary and prepare detailed assessmentfor non-functional projects based on the result.

Capacity Development and Communications:

a. Assist the DILG-CO-OPDS-PMOs in theconduct of capacity development programs;

b. Assist the DILG-CO-OPDS in the conduct ofCommunications and Advocacy Program.

7.2.2.3 Provincial Director (PD)

The DILG-Provincial Director (DILG-PD) shall assistthe RO in monitoring overall programimplementation at the provincial level, to ensureefficient and effective implementation of theprojects. He/She shall be responsible for thefollowing, which are reflected in the SPMS as theircommitments and/or in the Terms of Reference(TORs) of his/her Staff:

a. Conduct provincial physical and financialplanning in coordination with DILG-RO;

b. Assist the RO in the dissemination of programpolicies issued by the DILG Management,including other issuances related to projectimplementation, and national standards forquality assurance;

c. Assist the RO in the conduct of orientation orone-on-one briefing to ensure that the MLGUsare well-informed of and are able to complywith the policies and other issuances relatedto project implementation;

d. Recommend to RO the list of MLGUs withNotarized LGU Certification for Fund Release;

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e. Prepare and implement a quarterly monitoringplan;

f. Field or mobilize the Engineers assigned inthe PO to monitor projects regularly andprovide technical assistance to the MLGUswith reported issues;

g. Ensure that the concerned Cluster Heads andMLGOOs discharge their responsibilities inprogram implementation, as stated in Section7.2.2.4 and Section 7.2.2.5, and provideassistance, if needed;

h. compliance with anyrecommended corrective actions duringimplementation within the agreed timelines;

i. Ensure the compliance with the provisions ofthe DILG MC 2018-114 (Guidelines in theImplementation of SubayBAYAN) relative tothe progress reporting of the projects;

j. Maintain the copies of MLGU submissionstransmitted by the MLGOOs and be madeavailable during inspection. Scanned copiesshould be provided to DILG-RO-PDMU;

k. Based on the reports submitted by theMLGOOs and the Cluster Heads, prepare andsubmit to DILG-RO the Provincial Monthly

Recommended Actions to Identified Issuesand Concerns (Annex Z) and track possibleinterventions/actions at the PO level inaccordance with DILG MC 2018-104;

l. Issue 1st and 2nd Warning Letters and othernotices in accordance with DILG MC 2018-104;

m. Conduct the Rapid Subproject SustainabilityAssessment (RSSA) for completed projectswithin the prescribed timelines pursuant toGuidelines issued by the DILG;

n. Provide advisory and technical assistance toMunicipalities;

o. Assist the DILG-RO and/or OPDS-PMOs inthe conduct of Communications andAdvocacy Program;

p. Facilitate the conduct ofconsultations/dialogues at the provincial level

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with DILG-RO, MLGUs, and otherstakeholders to resolve issues on projectimplementation;

q. Assist the DILG-RO and/or OPDS-PMOs inthe conduct of capacity developmentprograms;

r. May attend bid openings, if invited;

s. Check whether the MLGU already booked theproject as asset upon final acceptance; and

t. Receive the MLGU Certification of provisionof annual maintenance fund specifically forthe concerned project/s.

7.2.2.4 Cluster Heads shall:

The Cluster Heads shall assist the PD in monitoringprojects in his/her Cluster MLGU. He/She shall beresponsible for the following:

a. Ensure that the MLGOO complies with theprovisions of the DILG MC 2018-104 andDILG MC 2018-114;

b. Orient the MLGOOs on the Policy, Monitoring,and Reporting Guidelines;

c. Oversee the maintenance of documents andMLGU submissions transmitted by theMLGOOs;

d. Supervise the MLGOOs in the discharge oftheir responsibilities and provide assistance, ifneeded; and

e. If warranted, participate in the conduct ofpunch-listing and final inspection to ensurethat all issues and concerns are addressedbefore the issuance of correspondingcertifications.

7.2.2.5 The Municipal Local Government Operations Officer(MLGOO) shall:

The MLGOO shall assist the PD and the ClusterHead in monitoring projects at the municipal level.He/She shall be responsible for the following:

a. Review the completeness of the following:

1. Notarized MLGU Certification for FundRelease (Annex A);

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2. Confirmation on the Receipt of Fund(Annex G);

3. Notarized MLGU Certification ofCompliance to Project Implementation;and

4. Project Implementation Schedule (AnnexC).

In validating and confirming Items 1 to 4, usethe Validation Form (Annex V).

b. Take and promptly upload geotagged photosof the project (0%, 30%, 60%, 90%, 100%,Turn-over) and project data in theSubayBAYAN;

c. Assist in the dissemination of program policiesissued by the DILG Management, includingother issuances related to projectimplementation and national standards forquality assurance, to ensure that the MLGUsare well-informed and are able to comply withsuch issuances;

d. Monitor if the MLGU has received the AM fundas mentioned in Section 6.4 of this Guidelinesand has been transferred to the Trust FundAccount, including the MLGU Counterpartmentioned in Section 6.2 of this Guidelines, ifany;

e. If warranted, MLGOO may attend bidopenings and note CSO participation in theprocurement process;

f. Notify DILG-advise MLGU to submit Revised Pro-formaImplementation Schedule (Annex C);

g. Assist in the conduct of project monitoringvisit cum exit conference with the MLGU.Secure a copy of the Aide Memoire (AnnexX) signed by the parties present, copyfurnished DILG-PO; and

h. Assist the DILG-PO in the conduct of thecapacity development activities at theprovincial/municipal level.

8.0 PENAL PROVISIONS

Projects implemented not in accordance with the provisions of this Guidelines,including all other applicable laws, shall be subject to:

8.1 Project Cancellation

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Pursuant to the Warning Scheme stipulated in the DILG MC 2018-104,projects issued with 3rd level warning may be subjected to project cancellationand reversion of its fund allocation, which include but not limited to thefollowing:

8.1.1 If the MLGU fails to submit/complete documentary requirements priorto procurement;

8.1.2 During procurement stage, if the MLGU fails to follow the procurementschedule submitted to the DILG without valid reason; and

8.1.3 If the negative slippage reaches 15%, or if deviations in MonitoringParameters have remained uncorrected.

8.2 If projects are cancelled pursuant to Section 8.1 of these Guidelines, theMunicipality shall:

8.2.1 Revert the unutilized fund in accordance with Section 6.4.9 of theseGuidelines.

8.2.2 If the project to be cancelled n- ssue a Notarized Affidavitof Undertaking stating the following:

8.2.2.1 Complete the projects using own funds on or before agreedtimelines with the DILG RO;

8.2.2.2 Submit completion and turn-over report 30 calendar days(CDs) after issuance of Certificate of Completion; and

8.2.2.3 Assume the accountability and liability under applicable lawsand issuances in case of non-compliance with thisUndertaking.

8.3 If warranted, documentary reports and findings shall be forwarded to theBANTAY KORAPSYON Project Management Office for possible filing ofappropriate civil, criminal and/or administrative cases.

8.4 May be grounds for disqualification for future funding under the Program.

9.0 ISSUES FOR RESOLUTION

Interpretation of the provisions of this Memorandum Circular, including issues andconcerns not covered herein, shall be submitted to the DILG for resolution.

10.0 REPEALING CLAUSE

All provisions of existing issuance that are inconsistent with this Memorandum Circularare hereby repealed/amended accordingly.

11.0 ANNEXES

Annex A MLGU Certification of Compliance for Fund Release

Annex B Water Source Validation Report (SVR) Form

35 | P a g e

Annex C Project Implementation Schedule

Annex D DILG-RO Endorsement of Projects of Eligible

Municipalities for Fund Release

Annex E Pro-forma List of Projects of Eligible

Municipalities for Fund Release

Annex F Notice of Eligibility

Annex G Confirmation on the Receipt of theFY 2020 AM Fund

Annex H Community Billboard Manual

Annex I Request for Work Inspection

Annex I-1 Concrete Pre-Pour Checklist

Annex J Concrete Pouring Permit

Annex J-1 Finished Concrete Checklist

Annex __ Maximum Prescribed ImplementationTimelines

Annex K List of Major Activities (Municipal Engineer)

Annex L MLGU Quarterly Report

Annex M Project Completion Report

Annex N Site Instruction Form

Annex O Inspection Report

Annex P Final Inspection Report

Annex Q Certificate of Completion

Annex R Certificate of Final Acceptance

Annex S Notice of Defects/Deficiencies

Annex T Notice of Project Cancellation

Annex U Validation Form (RO/PO Technical Staff)

Annex V Validation Form (MLGOO)

Annex W Affidavit of Undertaking

Annex X Aide Memoire

Annex Y Contractor Monthly of Statement of Work

36 | P a g e

Accomplished (SWA)

Annex ZCompliance with the Recommended Actions to IdentifiedIssues and Concerns (For DILG-PO)

Annex AACompliance with the Recommended Actions to IdentifiedIssues and Concerns (For DILG-RO)

Annex AB FY 2020 GAA Provisions

Annex AC AM Project Menu

12.0 EFFECTIVITY

This Circular shall take effect immediately upon posting in the DILG website.

EDUARDO M. AÑOSecretary, DILG

Annex AMLGU Certification of Compliance for Fund Release

2020 LGSF-AMAM-LAR

LGULOGO

LETTERHEAD OF THE LOCAL GOVERNMENT UNIT

CERTIFICATION

In the implementation of (project title)amounting to PhP_______________ in the Municipality of ____________________ underthe FY 2020 Local Government Support Fund-Assistance to Municipalities (LGSF-AM)Program, we hereby attest that:

1) Certified True Copies of the following documents are hereby attached:

a) Approved Detailed Engineering Design (DED) which has been prepared inaccordance with the AM Project Menu, Project Proposal, National Governmentstandards, and relevant provisions of the General Appropriations Act (GAA)and other applicable laws and issuances;

b) Proof of application of the following permits:b.1) Environmental Compliance Certificate (ECC) or Certificate of Non-

Coverage (CNC) from the Department of Environment and NaturalResources Environmental Management Bureau (DENR-EMB),whichever is applicable.

b.2) Certificate of Non-Overlap (CNO) or Free, Prior and Informed Consent(FPIC) from National Commission on the Indigenous People (NCIP),whichever is applicable.

b.3) Other permits as maybe required by laws, rules, or other concernedagencies for the implementation of the project.

c) Deed of Donation or Deed of Absolute Sale or Usufruct or any other legaldocuments proving that the site of the project has no land ownership or Right-of-Way (ROW) issues;

d) MGB Certification that the project is not located in the no build zone andhazard-prone area; and

e) Executive Order creating or activating the PMC who will closely monitor theprojects indicated in MC 2004-78 which include projects funded under theLocal Government Support Fund (LGSF);

2) The project is not located in the hazard prone areas asdetermined by the Department of Environment and Natural Resources-Mines andGeosciences Bureau (DENR-MGB) Hazard Map. Attached is the certificationissued by the said agency.

3) The project is included in the updated and duly adopted Local DevelopmentInvestment Program (LDIP) of the Municipality.

Annex E-3MLGU Certification of Compliance to Project Implementation (Potable Water System Projects)

4) The proposed AM Project is included in the approved Annual Procurement Plan ofthe Municipality.

5) The bidding documents have been prepared, and to ensure that the bidding cancommence on (identify date), these documents shall be made available to DILGduring field monitoring visits and/or as may be requested.

6) Downloaded funds to the Municipality from the national subsidy of DILG-OPDSAdministered Programs from previous funding years (2012-2018) have been fullyliquidated including undisbursed funds have been reverted to the source agency(DILG or Bureau of Treasury), pursuant to applicable provisions of the GeneralAppropriations Act (GAA).

7) The Municipality commits and binds itself ourselves to comply with all theprovisions of the Project Implementation and Monitoring Guidelines issued by theDILG.

8) Funds shall be made available for the maintenance and insurance, whereapplicable, once the project is completed.

9) The Municipality has a functional website as required in the General AppropriationsAct (GAA).

10) Municipal and barangay roads and bridges inventory with attributes usingprescribed format has been submitted to their respective Provincial PlanningDevelopment Office (PPDO); and

11) The Municipality has a functional PIT, PMC and Inspectorate Team who will closelysupervise, and monitor the projects indicated in MC 2004-78 which include projectsfunded under the Local Government Support Fund (LGSF).

We accept that the Municipality may be ineligible to receive subsidy from the Assistance toMunicipalities (AM) Program in the next Fiscal Year (FY) if any of the above declarations arefound to be misrepresented or false.

We hereby agree that our Municipality is primarily and solely accountable and responsible asto the truthfulness of this attestation, and at the same time, further attest the accuracy andthe completeness of the submitted technical documents, as well as its consistencies andconformity to national standards.

We hereby further agree that our Municipality will be subjected to penalties and sanctions incase of non-compliance to Project Implementation and Monitoring Guidelines issued by theDILG.

This Certification is being issued in compliance with the DILG Memorandum CircularNo._____, Series of 2020.

Annex A (LAR _)MLGU Notarized Certification for Fund Release

FY 2020 LGSF-AM

(Signature over Printed Name) ________________Municipal Budget Officer Date

(Signature over Printed Name) ________________Municipal Planning and Date

Development Coordinator

(Signature over Printed Name) ________________Municipal Engineer Date

(Signature over Printed Name) ________________Local Chief Executive Date

___________________________________________________________

ACKNOWLEDGEMENTREPUBLIC OF THE PHILIPPINES

(Municipality/City of ________________) S.S.

Subscribed and sworn to before me on this date, a Notary Public for and in __________,Philippines.

NOTARY PUBLIC

Doc. No. __________Book No. __________Page No. __________Series of __________

Annex A-1MLGU Certification of Compliance for Fund Release (Level II without IP and hazard area)

2020 LGSF-AMAM-Water

LGULOGO


CERTIFICATION

In the implementation of _________(project title)_________ amounting to__________________ in the Municipality of ____________________ under the FY 2020 LocalGovernment Support Fund Assistance to Municipalities Program, we hereby attest that:

1. Certified True Copies of the following documents are hereby attached:

a. Approved Detailed Engineering Design (DED) which has been prepared inaccordance with the National Government standards, and relevant provisions ofthe GAA (specifically wind speed of 300 km/h and moderate seismic activity of atleast 8.0 magnitude in the richter scale) and other applicable laws and issuances;

b. Proof of the application of the following permits:i. Certificate of Non-Coverage (CNC) from DENR-EMB;ii. Water Permit from the National Water Resources Board (NWRB); andiii. Other permits required for the implementation of the project;

c. Deed of Donation / Deed of Absolute Sale / Usufruct or any other legal documentsproving that there is no land ownership or road right-of-way (RROW) issue;

d. Source Validation Report (SVR) and water quality test results for water supplysystem project; (delete this provision for non-water projects) or

e. Executive Order creating or activating the PMC who will closely monitor theprojects indicated in MC 2004-78 which includes LGSF-funded projects;

2. The project site is located in the no build zone or hazard-prone area as identified byDENR-MGB, engineering mitigation measures have been included in the DED to addressthe potential hazard/s that may occur.

3. The proposed AM Project is included in the Annual Procurement Plan of the Municipality.

4. The project is included in the updated and duly adopted Local Development InvestmentPlan (LDIP) of the Municipality.

5. The Municipality has a functional PIT, PMC and Inspectorate Team based on Executiveorders issued by the undersigned;

6. The bidding documents have been prepared and to ensure that the bidding cancommence on _____, these documents shall be made available to DILG during fieldmonitoring visits and/or as may be requested.

7. Downloaded funds to the Municipality from the national subsidy of AM Programs fromprevious funding years (2012-2018) have been fully liquidated including undisbursedfunds have been reverted to the source agency (DILG or Bureau of Treasury), pursuantto applicable provisions of the GAA.

Annex AMLGU Notarized Certification for Fund Release

FY 2020 LGSF-SALINTUBIG

8. The Municipality commits and binds ourselves to comply with all the provisions of theProject Implementation and Monitoring Guidelines issued by the DILG.

9. Funds shall be made available for the maintenance and insurance, where applicable,once the project is completed.

10. The Municipality has a functional website as required in the General Appropriations Act(GAA).

We accept that the Municipality may be ineligible to receive subsidy from the AM Program in thenext Fiscal Year (FY) if any of the above declarations are found to be misrepresented or false.

We hereby agree that our Municipality is primarily and solely accountable and responsible as tothe truthfulness of this attestation, and at the same time, further attest the accuracy and thecompleteness of the submitted technical documents, as well as its consistencies and conformityto national standards.

We hereby further agree that our Municipality will be subjected to penalties and sanctions in caseof non-compliance to Project Implementation and Monitoring Guidelines issued by the DILG.

This Certification is being issued in compliance with the DILG Memorandum Circular No._____,Series of 2020.





___________________________________________________________



Subscribed and sworn to before me on this date, a Notary Public for and in __________, Philippines.

NOTARY PUBLIC

Doc. No. ________Book No. ________Page No. ________Series of ________

Annex A-2MLGU Certification of Compliance for Fund Release (Level II with IP and hazard area)

2020 LGSF- AMAM-Water

LGULOGO


CERTIFICATION




b. Proof of the application of the following permits:i. Certificate of Non-Coverage (CNC) from DENR-EMB;ii. Free, Prior and Informed Consent (FPIC) from National Commission on

the Indigenous People (NCIP);iii. Water Permit from the National Water Resources Board (NWRB); andiv. Other permits required for the implementation of the project;




2. The project site is located in the no build zone or hazard-prone area as identified byDENR-MGB, engineering mitigation measures have been included in the DED to addressthe potential hazard/s that may occur.





7. Downloaded funds to the Municipality from the national subsidy of AM Programs fromprevious funding years (2012-2018) have been fully liquidated including undisbursed



funds have been reverted to the source agency (DILG or Bureau of Treasury), pursuantto applicable provisions of the GAA.





We hereby agree that our Municipality is primarily and solely accountable and responsible as tothe truthfulness of this attestation, and at the same time, further attest the accuracy and thecompleteness of the submitted technical documents, as well as its consistencies and conformityto national standards.

We hereby further agree that our Municipality will be subjected to penalties and sanctions in caseof non-compliance to Project Implementation and Monitoring Guidelines issued by the DILG.

This Certification is being issued in compliance with the DILG Memorandum Circular No._____,Series of 2020.





___________________________________________________________



Subscribed and sworn to before me on this date, a Notary Public for and in __________, Philippines.

NOTARY PUBLIC

Doc. No. ________Book No. ________Page No. ________Series of ________

Annex A-3MLGU Certification of Compliance for Fund Release (Level II without IP and non-hazard area)

2020 LGSF- AMAM-Water

LGULOGO


CERTIFICATION




b. Proof of the application of the following permits:i. Certificate of Non-Coverage (CNC) from DENR-EMB;ii. Water Permit from the National Water Resources Board (NWRB); andiii. Other permits required for the implementation of the project;




2. The project is not located in the no-build zone or hazard-prone area as identified byDENR-MGB. Attached is the certification issued by the said agency.





7. Downloaded funds to the Municipality from the national subsidy of AM Programs fromprevious funding years (2012-2018) have been fully liquidated including undisbursedfunds have been reverted to the source agency (DILG or Bureau of Treasury), pursuantto applicable provisions of the GAA.







We hereby agree that our Municipality is primarily and solely accountable and