53
STRENGTHENING URBAN RESILIENCE FOR GROWTH WITH EQUITY (SURGE) PROJECT Baseline Assessment Report April 18, 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by ICMA.

STRENGTHENING URBAN RESILIENCE FOR GROWTH WITH …

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page i of 53

STRENGTHENING URBAN RESILIENCE FOR GROWTH WITH EQUITY (SURGE) PROJECT Baseline Assessment Report

April 18, 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by ICMA.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page i Baseline Assessment Report

STRENGTHENING URBAN RESILIENCE FOR GROWTH WITH EQUITY (SURGE) PROJECT BASELINE ASSESSMENT REPORT Prepared for: USAID/PHILIPPINES, Office of Economic Growth Prepared by:

International City/County Management Association Contract No. AID-492-H-15-00001 April 18, 2016 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page ii Baseline Assessment Report

Table of Contents LIST OF ACRONYMS AND ABBREVIATIONS ................................................. iv Figures ............................................................................................................. viii Tables ................................................................................................................ ix Annexes ................................................................... Error! Bookmark not defined. 1 Introduction ............................................................................................... 1 2 Highlights of the Baseline of the Initial Six (6) CDI Cities ...................... 1 3 Baseline for Impact Indicators ................................................................. 2 3.1 Economic Dynamism of the CDI Cities ................................................. 2 3.2 Gross Regional Domestic Product (GRDP) Growth ............................. 4 3.3 Adaptive Capacity of CDI Cities improved ............................................ 6 4 Baseline per Component .......................................................................... 6

4.1 Desired Impact 1: Local Capacity in Inclusive and Resilient Urban Development Improved ........................................................................................................................................... 6

4.1.1 Risk-sensitivity and Social Inclusiveness of Plans ........................................................................ 7 4.1.2 Resources leveraged by CDI Cities for CC Adaptation, DRR and LEDS ...................................... 9 4.1.3 Risk reducing measures implemented by CDI Cities ................................................................... 10 4.1.4 Stakeholders’ Capacity to address Climate change issues (as a result of USG assistance) .. 11 4.1.5 Establishment of Urban Development Learning Centers (formerly referred to as Urban Resource Centers) ......................................................................................................................................... 11 4.1.6 Reduction, Sequestration and/or Avoidance of Greenhouse Gas (GHG) Emissions ............... 13 4.1.7 Improvement of Drinking Water Source ......................................................................................... 14 4.1.8 Improvement of Sanitation Facilities .............................................................................................. 16 4.1.9 Assessments related to Resilient Urban Planning and Development ........................................ 16 4.1.10 Formulation/Assistance on Plans/Programs ................................................................................. 17

4.2 Desired Impact 2: Environment for Local Economic Development Improved ................. 17 4.2.1 Improvement of the CDI Cities’ Overall Competitiveness ............................................................ 17 4.2.2 New business registrations ............................................................................................................. 19 4.2.3 Increase in locally sourced or municipal revenue ........................................................................ 19 4.2.4 Increase in expenditures on infrastructure and social services/total spending ....................... 20 4.2.5 E-readiness ....................................................................................................................................... 22 4.2.6 Reduction in the Number of Steps, Time, and Signatures in obtaining local permits reduced 23 4.2.7 Land Tenure Security ....................................................................................................................... 25 4.2.8 Formation of new Public-Private Partnerships (PPP) ................................................................... 26 4.2.9 Completion of Tax Compliance Studies ......................................................................................... 28 4.2.10 Action plans/Recommendations to Streamline/Improve LGU Procedures and improve investments .................................................................................................................................................... 28 4.2.11 Establishment and Capacity Building of Systematic Adjudication and Titling (SAT) Teams .. 28 4.2.12 Investment promotion activities undertaken by Chambers of Commerce/BSOs/IPCs/OSS and Negosyo Centers as a result of SURGE assistance ................................................................................... 29

4.3 Desired Impact 3: Connectivity and Access Between Urban and Rural Areas Improved 31

4.3.1 Time and Cost of transporting goods between CDI city and peri-urban areas reduced .......... 31 4.3.2 Simplification of City-Rural Regulations and Administrative Procedures ................................. 31 4.3.3 Beneficiaries receiving improved infrastructure/ transport services (including PPPs) ........... 33 4.3.4 Private investment in CDI cities and adjacent peri-urban areas increased ............................... 33 4.3.5 Small and Medium Enterprises (SMEs) receiving business development services from USG-assisted sources ............................................................................................................................................ 34 4.3.6 Improvement of Tourism Management Plans ............................................................................... 34

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page iii Baseline Assessment Report

4.3.7 Conduct of Studies on Rural-Urban Linkages .............................................................................. 35 4.3.8 Strengthening Local Institutions/Stakeholders on Tourism Management ................................. 37 4.3.9 Assessment and Assistance of Metropolitan Coordinating Institutions and/or Special Purpose Inter-Municipal Institutions............................................................................................................ 37

4.4 Baseline per Cross-cutting Indicators ................................................................................ 39 4.4.1 Number of CDI Cities awarded Seal of Good Local Governance (SGLG) .................................. 39 4.4.2 SURGE Performance Incentive Fund ............................................................................................. 39 4.4.3 Use of Sex-Disaggregated Data (SDD) in Evidence-Based Planning and Processes ............... 40 4.4.4 Number of Knowledge Products shared through the Knowledge Management system .......... 41 4.4.5 Number of resolutions issued by LGU League of Cities to advocate for National level reforms affecting local economic environment ........................................................................................................ 41 4.4.6 Number of SFs, or steering committees organized and actively meeting ................................. 41 4.4.7 SURGE Tailored Assistance for Results (STAR) Action Plans.................................................... 41 4.4.8 Person hours in attendance to training activities organized by SURGE .................................... 42 4.4.9 Person hours in attendance to study tours and exposure visits organized by SURGE ........... 42

REFERENCES .................................................................................................. 43

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page iv Baseline Assessment Report

LIST OF ACRONYMS AND ABBREVIATIONS ABC Area Business Conference ACCRN Asian Cities Climate Change Resilience Network ADB Asian Development Bank AIM Asian Institute for Management ASEAN Association of Southeast Asian Nations BDO Banco de Oro BE SECURE Water Security for Resilient Economic Growth and Stability (USAID

Project) BG Banyan Global B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and

Sustainability (USAID Project) BLGF Department of Finance, Bureau of Local Government Affairs BOT Build-Operate-Transfer BPI Bank of the Philippine Islands BPLS Business Permits and Licensing System BRACE Building the Resilience and Awareness of Metro Manila Communities to Natural

Disaster and Climate Change Impact (AusAID Project) BSO Business Service Organization CBQ City Baseline Questionnaire CCA Climate Change Adaptation CCC Climate Change Commission CDC City Development Council CDI Cities Development Initiative (of USAID) CDIA Cities Development Initiative for Asia CDO Cagayan de Oro CDP Comprehensive Development Plan CIPH City-wide Investment Planning for Health CLUP Comprehensive Land Use Plan CMCI COMPETE

Cities/Municipalities Competitiveness Index Advancing Philippine Competitiveness (USAID Project)

COP Chief of Party CORE Competitiveness & Resiliency CPIP City Public Investment Program CPC City Program Coordinator CRR Climate Resilience Review CSO Civil Society Organization DAP Development Academy of the Philippines DCA Development Credit Authority DCOP Deputy Chief of Party DENR Department of Environment and Natural Resources DILG Department of the Interior and Local Government DOA Department of Agriculture DOH Department of Health

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page v Baseline Assessment Report

DOST Department of Science and Technology DPWH Department of Public Works and Highways DRR Disaster Risk Reduction DRRM Disaster Risk Reduction and Management DRRMP Disaster Risk Reduction Management Plan DTI Department of Trade and Industry ELA Executive Legislative Agenda ETRACS Enhanced Tax Revenue Assessment and Collection System GAM Goal Achievement Matrix GAP Gender Action Plan GDA Global Development Alliance GEM Growth with Equity in Mindanao GHG Greenhouse Gas GIS Geographic Information Systems GPH Government of the Philippines HLURB Housing and Land Use Regulatory Board ICLEI Local Governments for Sustainability (formerly, International Council for Local

Environmental Initiatives) ICLEI SEAS ICLEI Southeast Asia Secretariat ICMA ICTO

International City/County Management Association Information and Communications Technology Office

IFC International Finance Corporation IIP Infrastructure Investment Plan INVEST IPCC

Investment Enabling Environment (USAID Project) Intergovernmental Panel on Climate Change

IPC Invest Promotion Centers IPC Investment Promotion Center IR Intermediate Result ISF Innovation Support Fund LAMP Land Administration and Management Program LBG Louis Berger Group LCP League of Cities of the Philippines LEDS Low Emission Development Strategies LEG Low Emission Growth LEIPOs Local Economic & Investment Officers LGA Local Government Academy LGI Land and Government Innovations Consultants LGPMS Local Governance Performance Management System LGSP-LED Local Governance Support Program for Local Economic Development LGU Local Government Unit LPP League of Provinces LRA Land Registration Authority M&E Monitoring and Evaluation MNDC Metro Naga Development Council MoU Memorandum of Understanding NCC National Competitiveness Council

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page vi Baseline Assessment Report

NCCAP National Climate Change Action Plan NDRRMC National Disaster Risk Reduction and Management Council NEDA National Economic and Development Authority NEO Newly Elected Official NGA National Government Agencies NLCC National Level Consultative Committee NRC NSCB

National Research Center National Statistical Coordination Board

NTDP National Tourism Development Plan OML Oscar M. Lopez Center for Climate Change Adaptation OSS One-Stop Shop PCCI Philippine Chamber of Commerce and Industry PDF Philippine Development Forum PFG Partnership for Growth PIS Performance Incentive Scheme PMP Performance Management Plan PPDO Provincial Planning and Development Office PPIAF Public-Private Infrastructure Advisory Facility PPP Public-Private Partnership PRISM II Private Sector Mobilization Project Phase 2 PRMF PSA

Provincial Road Management Facility Philippine Statistics Authority

RAP Rapid Action Plan RCC Regional Competitiveness Council REGALA Support to Local Government Revenue Generation and Land

Administration Reforms (ADB/JFPR Project) RFTOP Request for Task Order Proposals RLTA Rapid Land Tenure Appraisal RNA Rapid Needs Assessment RoD Registry of Deeds RPT Real Property Tax SF Stakeholders’ Forum SIMM Scaling Innovations in Mobile Money SIMPLE Sustainable Integrated Management and Planning for Local Government

Ecosystems SME Small and Medium Enterprise SMV Schedule of Market Values SSF (SF) SURGE Stakeholders Forum STAR SURGE Tailored Assistance for Results STRIDE Science, Technology, Research and Innovation for Development STTA Short-Term Technical Advisor SURGE Strengthening Urban Resilience for Growth with Equity SWOT Strengths Weaknesses Opportunities Threats TA Technical Assistance TO TRIP

Task Order Tourism Road Infrastructure Program

TWG Technical Working Group UDI Urban Development Index

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page vii Baseline Assessment Report

UHSD Urban Health Systems Development USAID United States Agency for International Development USEPA U.S. Environmental Protection Agency USG U.S. Government VC Value Chain WB World Bank

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page viii Baseline Assessment Report

Figures Figure 1. CMCI Ranking (Economic Dynamism, 2014 and 2015) of selected Cities 3 Figure 2. Gross Regional Domestic Product (Real Growth Rates, 2012 to 2014) 5 Figure 3. CMCI Ranking (Overall, 2014 and 2015) of selected Cities 18 Figure 4. Percentage of Total Local and External Sources as per Total Current Operating Income (FY 2012 to 2014) 20 Figure 5. Percentage of Infrastructure and Social Service Spending in the CDI Cities as per Total Current Operating Expenditure for FY 2012 to 2014 22

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page ix Baseline Assessment Report

Tables Table 1. Comparative Summary of the CDI Cities' Economic Dynamism 4 Table 2. Comparative Summary of the Gross Regional Domestic Product (GRDP) of the six CDI cities’ respective regions (per data source) 5 Table 3. Comparative Summary of the CDI Cities’ Plans’ Risk Sensitivity (by data source) 8 Table 4. Comparative Summary of the Assessment of the CDI Cities’ Plans as per Social Inclusion with Gender Integration (by data source) 9 Table 5. Comparative Summary of the Baseline Data for Resources Leveraged for climate change adaptation (CCA), disaster risk reduction (DRR), and low emission development strategies (by data source) 10 Table 6. Comparative Summary of the Baseline Data for Risk-Reducing Measures Implemented by CDI Cities 11 Table 7. Comparative Summary of the Baseline Data and Potential Institutions that can be partnered with for the Establishment of Urban Development Learning Centers in the CDI Cities 12 Table 8. Comparative Summary of Baseline Data for Greenhouse Gas (GHG) Emissions in the CDI Cities 14 Table 9. Comparative summary of Baseline Data and Initial Assessment of Potable Water in the CDI Cities 15 Table 10. Comparative Summary of the Baseline Data on Cities and Municipalities Competitiveness Index (CMCI) (by data source) 18 Table 11. Comparative Summary of the Baseline Data for the Percentage Increase in Locally Sourced/Municipal Revenue in the CDI Cities 19 Table 12. Comparative Summary of the Baseline Data on the Percentage increase in Expenditures on Infrastructure and Social Services in the CDI Cities 21 Table 13. Comparative Summary of the Baseline Data on E-Readiness of the CDI Cities 23 Table 14. Comparative Summary of Baseline Data for BPLS Assessment in the CDI Cities 24 Table 15. Comparative Summary of Baseline Data on the Number of Households who have obtained Documented Property Rights as result of USG Assistance and Status of Land Tenure in the CDI Cities 26 Table 16. Comparative Summary of the Baseline Data for Public-Private Partnerships (PPP) and other Potential PPPs in the CDI Cities 27 Table 17. Comparative Summary of the Baseline Data for Investment Promotion Activities undertaken by Chambers of Commerce/BSOs/IPCs/OSS and Negosyo Centers as a result of USG Assistance in the CDI Cities 29 Table 18. Comparative Summary of the Baseline Data for City-Rural Regulations and Administrative Procedures in the CDI Cities 31 Table 19. Comparative Summary of Baseline Data on Private Investment in CDI Cities and Peri-Urban Areas 33 Table 20. Comparative Summary of Baseline Data on Tourism Management Plans and Assistance provided by USG through COMPETE 35 Table 21. Comparative Summary of the Value Chain Studies in the CDI cities 36 Table 22. Comparative Summary of Baseline Data and Status of Metropolitan Coordinating Institutions and/or Special Purpose Municipal Institutions per Rapid Assessment in the CDI Cities 37 Table 23. Comparative Summary of the Baseline on Sex-Disaggregated Data Availability and Usage in the CDI Cities 40

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 1 Baseline Assessment Report

1 Introduction This Baseline Assessment Report for the Strengthening Urban Resilience for Growth with Equity (SURGE) Project aims to provide an overview of the project’s six cities with regards to urban planning and resilience; local economic development; and rural-urban connectivity. Those six cities are Batangas and Puerto Princesa in Luzon; Iloilo and Tagbilaran in Visayas; and, Cagayan De Oro and Zamboanga in Mindanao. This Baseline is submitted in support of the project’s approved First Year Work Plan and the most recent version of its Monitoring & Evaluation Plan and provides a context for its target cities in line with the three Desired Impacts of the project:

• Local capacity in inclusive and resilient urban development improved; • Environment for local economic development improved; and • Connectivity and access between urban and rural areas improved.

In preparing this Report, the project accessed data from primary and secondary sources. The primary data consisted of Rapid Assessments performed by the project’s Component Leads in the early months of project implementation, supplemented by the work of Short Term Technical Assistance during the completion of specific, Work Plan related activities. In contrast, secondary data sources consulted include literature and documents produced for or by different national and local government and non-government agencies (e.g. Department of the Interior and Local Government [DILG], Housing and Land Use Regulatory Board [HLURB]). This data was collected by the Component Leads, City Program Coordinators, and the Monitoring and Evaluation (M&E) Team. Also included in the secondary data sources are the data from studies conducted through other USAID projects in the Philippines such as the Investment Enabling Environment (INVEST), Advancing Philippine Competitiveness (COMPETE), and Water Security for Resilient Economic Growth and Stability (Be Secure), etc. Documents for local government unit (LGU) performance indices (e.g. Cities and Municipalities Competitiveness Index) generated by other organizations were also used. As the project’s approved Work Plan contains a variety of ongoing assessments, this Baseline Report necessarily will be revised as those assessments are completed and the context of each city becomes better defined. 2 Highlights of the Baseline of the Initial Six (6) CDI Cities

SURGE is part of the Cities Development Initiative (CDI), a part of the broader Partnership for Growth, and seeks to assist its target cities to improve local capacity to manage and sustain urban and rural growth, increase local economic development by fostering business enabling measures, and expand urban-rural connectivity and access. To accomplish these objectives, the project is organized into three parallel and complementary areas of interventions: Urban Management and Land-Use Planning; Local Economic Development; and Urban-Rural Connectivity. In its first implementation year, SURGE will be working with an initial six (6) second-tier cities: Batangas and Puerto Princesa for Luzon; Iloilo and Tagbilaran, for Visayas; and Cagayan de Oro and Zamboanga for Mindanao.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 2 Baseline Assessment Report

The data initially collected on these cities show that even though all of the Cities are known for their competitiveness, the INVEST cities of Batangas, Iloilo, and Cagayan De Oro are more competitive than Puerto Princesa, Tagbilaran, and Zamboanga, which were not included in INVEST. Since the scope of that project was limited to the streamlining of government processes, however, that difference disappears when it comes to resilient urban planning; land tenure; gender mainstreaming; and improved access to water, sanitation, and transport services. In fact, early assessments point to a need to build capacity in: - Urban Management and Land Use Planning. There is a need to build on the technical aspects

of planning like zoning and infrastructure planning, as well as those that would help strengthen linkages with other government offices and other stakeholders.

- Financial management. There is a need to improve on how they manage their Internal Revenue Allotment (IRA) for local development projects.

- Urban-Rural Connectivity. There is a need to increase linkages with their neighbor municipalities in pursuit of mutually beneficial economic growth.

- Gender mainstreaming. There is a need to ensure that their plans are gender-responsive, ensuring social inclusion.

The next sections present details on these findings along with indicators proposed in the latest version of the project’s M&E Plan to measure the progress of Work Plan activities.

3 Baseline for Impact Indicators

SURGE’s purpose statement indicates that by the end of its five-year life cycle, the Philippines should have “resilient second-tier cities serving as engines of sustainable and equitable economic growth”. Increasing the chances that the project’s purpose will be met, its six CDI cities are regional growth centers and the primary transportation hubs of their respective regions. They also enjoy some of the most competitive local government units (LGUs) in the country. In spite of their fortunate geography and governance, however, each of these cities faces challenges – from steady if rapid population growth to the unpredictability of climate change. As each city’s situation is different, the technical assistance offered by the project will necessarily have to be tailored to the unique circumstances of each city. The ultimate purpose of this Baseline Report therefore is to establish the specific context of the project’s six cities as a starting point for crafting individual work plans. That context includes their initial conditions in relation to the three main components of the project (i.e., planning, growth, and linkages) and existing partnerships with local stakeholders (i.e. LGU, business and community groups, and academe) and experience with current and past USAID projects. And based on that context, the project presumes the following impact indicators to measure the economic growth of its cities and the extent to which that growth is resilient, inclusive and equitable.

3.1 Economic Dynamism of the CDI Cities

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 3 Baseline Assessment Report

One of the several ways to measure the performance of the cities is through the National Competitiveness Council’s (NCC) “Cities and Municipalities Competitiveness Index” (CMCI). This is the annual ranking of the Philippine cities and municipalities done through the Regional Competitiveness Committees (RCCs). This index is further divided into three sub-indices: (1) Economic Dynamism; (2) Government Efficiency; and (3) Infrastructure. With the project’s focus on economic growth, the sub-index for Economic Dynamism shall be utilized as the measurement for the CDI cities’ economic performance. Thus, the first impact indicator is stated as “Economic Dynamism Sub-Index of CMCI improved” (Impact Indicator 0.1).

Economic dynamism is usually associated with activities that create stable expansion of business and industries and higher employment. This is a representation of productivity that matches the output of the local economy with local resources. Conceptually, it is the combination of the entrepreneurial spirit and the financial institutions that will channel dynamism.

The CMCI sub-index on Economic Dynamism is a composite index composed of the following factors (and sub-indicators):

• Size of the Local Economy (Gross sales, Total number of business registrations, Total capitalization of newly registered businesses, and Total number of occupancy permits approved)

• Growth of the Local Economy and Investment (Growth of gross sales, Growth in the total number of business registrations, Growth in the capitalization of new businesses, and, Growth in the number of occupancy permits approved)

• Capacity to Generate Employment (Number of declared employees for new business applications, and Number of declared employees for business renewals)

• Cost of Living • Cost of Doing Business (Cost of electricity, Cost of water, Price of diesel, Daily

minimum wage, Cost of land in a central business district, and Cost of rent) • Financial Deepening (Number of banks and financial institutions)

Figure 1. CMCI Ranking (Economic Dynamism, 2014 and 2015) of selected Cities

Source: NCC

Batangas CDO Iloilo Pto Princesa Tagbilaran Zamboanga

2014 36 9 23 136 45 94

2015 8 20 27 32 23 26

0

20

40

60

80

100

120

140

160

CMCI Ranking (2014 and 2015)Economic Dynamism Sub-Index (City Ranking within

their Category)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 4 Baseline Assessment Report

• Productivity (Local productivity) • Presence of Business and Professional Organizations (Number of LGU

recognized/registered business groups, and Number of Other Business Organizations)

As seen in the table below, most of the cities still have to improve their performance in terms of Economic Dynamism; only Batangas was ranked as one of the top 10 cities in its Component City category. Meanwhile, the rest of the CDI cities have rankings equal to or higher than 20, majority of them categorized as Highly Urbanized Cities. Having this, SURGE may be of assistance in how to boost further the business enabling environment of the other CDI cities especially that of Puerto Princesa, Iloilo, and Zamboanga that have ranking higher than 25. Table 1. Comparative Summary of the CDI Cities' Economic Dynamism

CDI CITY CATEGORY

BASELINE DATA FOR CMCI

Other USAID

Projects

CMCI 2015 (NCC) Rank within

category SURGE

Assessment

Batangas Component City (CC) n/a 8 For Y1, SURGE

will provide support to NCC on LCDC and CMCI. It will

also develop a framework and

indicator system on Sustainable

Competitiveness

Puerto Princesa Highly Urbanized City (HUC) n/a 32

Iloilo Highly Urbanized City (HUC) n/a 27

Tagbilaran Component City (CC) n/a 23

Cagayan De Oro Highly Urbanized City (HUC) n/a 20

Zamboanga Highly Urbanized City (HUC) n/a 26

Annually, data shall be gathered from the NCC CMCI reports to check whether there are improvements in the economic dynamism of the six cities (and in accordance with the following USAID approved activities and outputs: - Activity D.2.1 Incorporate sustainability indicators in the cities/municipalities

competitiveness index (CMCI) o Output D.2.1.1 Framework and indicator system on Sustainable

Competitiveness - Activity D.2.2 Support to National Competitiveness Council

o Output D.2.2.1 LCDC and CMCI Activities Organized

3.2 Gross Regional Domestic Product (GRDP) Growth

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 5 Baseline Assessment Report

The SURGE project not only aspires to enhance the performance of the CDI cities; it also anticipates an impact on the performance of the peri-urban areas and the entire region to which the cities belong by improving connectivity between them. In addition to the CMCI Sub-Index for Economic Dynamism, the Gross Regional Domestic Product (GRDP) shall serve as an impact indicator for economic growth linked with urban-rural connectivity. The second impact indicator for the project is stated as: “Gross Regional Domestic Product (GRDP) Improved” (Impact Indicator 0.2). Of the regions of the CDI cities, only four regions have GRDPs growth rates higher than 6.0 and most of them are notably found in the Mindanao area. Meanwhile, the Regions in Visayas have the highest and lowest GRDPs among the six: Region VI (which includes Tagbilaran) with a GRDP of 8.8 being the highest; and Region VII (which includes Iloilo) with the lowest GRDP of 4.9. Details of the six regions can be found in Table 2. Table 2. Comparative Summary of the Gross Regional Domestic Product (GRDP) of the six CDI cities’ respective regions (per data source)

CDI CITY REGION BASELINE DATA FOR GRDP

Other USAID Projects

GRDP 2014 (PSA NSCB)

SURGE Assessment

Batangas Region IV- A (CALABARZON) n/a 5.1

None. SURGE will utilize Annual PSA

data on GRDP Growth

Puerto Princesa

Region IV-B (MIMAROPA) n/a 6.5

Iloilo Region VII n/a 4.9

Tagbilaran Region VI n/a 8.8

Cagayan De Oro Region X n/a 7.2

Zamboanga Region IX n/a 6.5

Figure 2. Gross Regional Domestic Product (Real Growth Rates, 2012 to 2014)

Source: PSA

Region IV-A(Batangas)

Region X(CDO)

Region VI(Iloilo)

Region IV-B(Pto Princesa)

Region VII(Tagbilaran)

Region IX(Zamboanga)

2012-2013 6.7 5.3 3.4 1.3 7.4 4.1

2013-2014 5.1 7.2 4.9 6.5 8.8 6.5

0.01.02.03.04.05.06.07.08.09.0

10.0

Gross Regional Domestic Product (2012 to 2014)Growth Rates (at Constant 2000 Prices)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 6 Baseline Assessment Report

GRDP data will be collected annually from the Philippine Statistics Authority, National Statistical Coordinating Board (PSA NSCB) to check the progress of the regions throughout the course of SURGE implementation.

3.3 Adaptive Capacity of CDI Cities improved Another major concern of the project is the resilience of the CDI cities, viz. how capable they are to handle and withstand the negative effects of climate change. USAID defines resilience as “the ability of people, households, communities, countries and systems to mitigate, adapt to and recover from shocks and stresses in a manner that reduces chronic vulnerability and facilitates inclusive growth.” As this definition suggests, the concept (and measurement) of resilience is complex and multidimensional. “Adaptive capacity” refers to the ability of ecological, social, or economic systems to adjust to climate change including climate variability and extremes, to moderate or offset potential damages and to take advantage of associated opportunities with changes in climate or to cope with the consequences thereof (Climate Change Act of 2009). With the expected provision of technical assistance on urban resilience, the adaptive capacity of the cities is expected to improve along the course of project implementation. Thus, the impact indicator is stated as “Adaptive Capacity of CDI Cities improved” (Impact Indicator 0.3). For this particular indicator, adaptive capacity of the CDI cities shall be measured through an index that shall be developed by SURGE called the Urban Development (Competitiveness & Resiliency CORE) Index (UDI). It will include all the factors that are necessary to strengthen the city’s capacity in urban development. The index will be a self-assessment tool that will enable cities to assess their progress and identify areas for improvement, as well as compare their performance with other cities. Since that index is yet to be developed, the baseline data for this indicator will be updated as soon as the UDI is finalized and assessments are finished. The UDI is expected to be completed within Quarters 3 and 4 (April-September 2016) of Year 1. When completed, the UDI will include the results of separate assessments of El Nino Task Forces currently being undertaken independently in Puerto Princesa, Cagayan De Oro, and Tagbilaran.

4 Baseline per Component 4.1 Desired Impact 1: Local Capacity in Inclusive and Resilient Urban Development

Improved Some of the challenges faced by cities posed by rapid growth and climate change are compounded by inadequate capacity on the part of local chief executives (LCEs) and their management teams to plan and manage the development and growth of their cities. For instance, the National Urban Development Housing Framework (2009-2016) cited studies that showed weak planning capacity arising from a weak educational foundation of city planning and development officers (CPDOs). Their sometimes weak or inappropriate preparation often results in planning documents that are poorly conceived, inconsistent or disregard the conditions and consequences of rapid economic growth.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 7 Baseline Assessment Report

Although government regulations require the participation of the private sector in planning (in part to correct for a possible mistake of the CPDOs), in practice such participation is not uniform. Complicating this dilemma is the added challenge of climate change, which involvement of the private sector is even less likely to solve as the interests of business tend to be more short-term than necessary to address the long-term environmental impact of growth conscientiously. Fortunately each of the project’s six cities already has its own climate change adaptation (CCA) and disaster risk reduction (DRR) plans as mandated by law. These plans, however, may be further strengthened to ensure that they are both risk sensitive and socially inclusive, consistent with the dual aims of the project’s Outcome Indicator 1.1.1: “Number of CDI Cities with risk-sensitive and socially inclusive plans”

4.1.1 Risk-sensitivity and Social Inclusiveness of Plans

To ensure that CCA and DRR are mainstreamed in the Comprehensive Land Use Plan and Comprehensive Development Plan (CLUP & CDP) of its cities, the project will assist the LGUs update their respective plans to comply with standards promulgated by the Housing and Land Use Regulatory Board (HLURB). The Board recently revised its guidebook for formulating land-use plans in compliance with two landmark national laws, the Climate Change Act of 2009 and the Disaster Risk Reduction and Management Act of 2010. Those guidelines require the mainstreaming of CCA and DRR in all national and local development plans, including the CLUP. Activities under the project’s Component 1 will assist the cities to update their land-use plans and formulate zoning ordinances consistent with the Board’s guidebook. Risk Sensitivity Due to the mainstreaming of CCA and DRR, the project’s cities already have a good hazard and vulnerability assessments. The project will assist them comply with the Supplemental Guidelines on “Mainstreaming Climate Change and Disaster Risks in the Comprehensive Land Use Plan” released by HLURB in 2015. In Batangas and Tagbilaran, this assistance will involve helping them in an ongoing process of writing their CLUPs and CDPs, while in Zamboanga, it entails integrating CCA and DRR into the Zamboanga City Roadmap to Recovery and Reconstruction (Z3R Plan), adopted following the 2013 siege to incorporate security and public safety concerns, along with environmental ones into contingency plans.

The project will likewise assess the exposure of CDI cities to natural and man-made hazards and their impact on development (Activity 1.1.1.1: Assess the capacity of CDI cities to conduct urban planning, including infrastructure planning and Output 1.1.1.1.1 Urban Development Capability Profiles for the six SURGE cities will be prepared and finalized within Quarters 3 and 4 (April-September 2016) of Year 1. Meanwhile, details on the initial assessment is presented in the table below:

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 8 Baseline Assessment Report

Table 3. Comparative Summary of the CDI Cities’ Plans’ Risk Sensitivity (by data source)

CDI City

INITIAL DATA FOR RISK-SENSITIVITY OF CDI CITIES’ PLANS

Other USAID

Projects

Compliance to HLURB Standards and Initial Assessment (Rapid Assessment of

Component Lead 1) SURGE

Assessment

Batangas - No, but there are hazard and vulnerabilities inputs in the CDP/CLUP);

Further assessment yet to be conducted (Output 1.1.1.1.1 Urban Development Capability Profiles for the six SURGE cities)

Puerto Princesa - Yes (but this has to be enhanced especially in

the updating of the CDP this year)

Iloilo - Yes (but still needs updating, review and to be intensified)

Tagbilaran - No (but is being integrated in the version that is currently being updated)

Cagayan De Oro -

Yes (After T.S. Sendong, HLURB assisted CDO in the CLUP preparation, making sure of CCA and DRR mainstreaming)

Zamboanga - No (but integrated in the Z3R); separate documents approved for DRRM and CCA. Current efforts to mainstream in the 2016 Updating of CLUP-ZO-CDP

Social Inclusion with Gender Integration As to social inclusion with gender integration, all of the project’s target cities have an inclusive process of planning, but only Cagayan De Oro has utilized the bottom-up approach where community-level consultations were done along with multi-stakeholder consultations in the preparation of the city’s plans. As a consequence, the project will assist the cities increase the participatory nature of their planning and budgeting consultations by providing them with histograms, multi-hazard maps, identification of vulnerable areas, assessment tools and reports, climate scenarios and projections, and forum reports and recommendations, as appropriate to their circumstances. (Output 1.3.3.1.1 Technical assistance provided to cities for CLUP/CDP, City Public Investment Programs, and PPP initiatives). Beyond its assistance to make planning more generally inclusive, the project will exert special effort to ensure that gender and development (GAD) are properly mainstreamed. Fortunately, Princesa, Iloilo, and Cagayan De Oro already have integrated GAD initiatives in their plans, although these can be strengthened as they are currently limited to health and hospital services. Details on the initial assessment by the project’s Gender Specialist can be seen in the table below:

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 9 Baseline Assessment Report

Table 4. Comparative Summary of the Assessment of the CDI Cities’ Plans as per Social Inclusion with Gender Integration (by data source)

CDI City

BASELINE DATA FOR SOCIAL INCLUSION WITH GENDER INTEGRATION

Other USAID

Projects Initial Assessment (as per Rapid Assessment of

Component Lead 1 and Gender Specialist) SURGE

Assessment

Batangas - Inclusive planning (but no consultation with the province on the on-going revision of CDP); for review to check for GAD mainstreaming

Further assessment yet to be conducted (Output 1.1.1.1.2 Assessment Report on Local Capacity towards Urban Resilience Building and Vulnerability Assessment of Six Cities)

Puerto Princesa -

Inclusive planning; CDP has integrated certain GAD goals in social development policies, legislative measures and proposed programs, projects and activities

Iloilo - Inclusive planning; BESECURE PCVA 2016 included GAD (including PWD) in pilot training two barangays; CBARRAD in 6 barangays

Tagbilaran - Inclusive planning; for further assessment

Cagayan De Oro -

More inclusive planning (bottom-up approach); conducted GAD consultations for GAD integration in the LDPs; however, is limited to women program situated on poverty alleviation and health & hospital services

Zamboanga - Inclusive planning; GAD considerations were integrated but can be further improved with the on-going updating by Palafox Associates (for coordination since consultation was postponed)

This section shall be updated when the further assessments are completed. The Updated 5-Year SURGE Gender Action Plan and approved Gender Implementation Strategy is expected within Quarter 3 (May 2016) of Year 1.

4.1.2 Resources leveraged by CDI Cities for CCA, DRR and LEDS

In addition to assisting its target cities mainstream issues of climate change and social inclusion, the project will also encourage them to allot the resources necessary to implement their plans. For instance, under Sub-component 1.3, the project will help cities revise their infrastructure investment plans to reflect market and climate factors (Task 1.3.3) and assist them to create public investment and annual expenditure programs (Task 1.3.4). Outcome Indicator 1.1.2 reflects this emphasis on making sure plans can be implemented: “Resources leveraged by CDI Cities for CC Adaptation, DRR, and LEDS” (Outcome Indicator 1.1.2). To date, the project has minimal data on how much resources are leveraged for CCA, DRR, and LEDS, and more will be collected as the cities’ capacity for urban resilience building and vulnerability are assessed. (Output 1.1.1.1.2). As shown in Table 5 below, however, preliminary research shows that Puerto Princesa, Cagayan De Oro, and Zamboanga each has allotted funds of at least P100M for disaster preparedness and for quick response and recovery.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 10 Baseline Assessment Report

Table 5. Comparative Summary of the Baseline Data for Resources Leveraged for climate change adaptation (CCA), disaster risk reduction (DRR), and low emission development strategies (by data source)

CDI City

BASELINE DATA FOR RESOURCES LEVERAGED FOR CCA, DRR, AND LEDS

Other USAID

Projects Initial Assessment (Secondary Source) SURGE

Assessment

Batangas - TBD

Further assessment yet to be conducted (Output 1.1.1.1.2 Assessment Report on Local Capacity towards Urban Resilience Building and Vulnerability Assessment of Six Cities)

Puerto Princesa -

For 2014 : around P107,147,000 for DRRM of which 31,825, 851.17 was utilized. P28,372,900 for Preparedness and Mitigation of which 3,500,000 was utilized

Iloilo - TBD

Tagbilaran - TBD

Cagayan De Oro -

For 2015: P102,904,575 30%-Quick Response Fund (QRF): P 30,871,372.00 70%- Disaster Preparedness: P 72,033,202.00

Zamboanga -

For 2015: • DRRMO data:

P37.595M (30%) for Quick Response P87.723 M (70%) for Relief & Recovery Program

• CBO data: P9,454,382.46 (Annual Budget 2015, 5% LDRRMF)

This section shall be updated as soon as assessments are completed within Quarters 3 and 4 (April-September 2016) of Year 1.

4.1.3 Risk reducing measures implemented by CDI Cities Following on the theme that plans require funds and action to be realized, the third outcome indicator for Component 1 is, “Number of risk-reducing measured implemented by CDI cities” (Outcome Indicator 1.1.3). As with the preceding indicator, the project has minimal data on the measures its cities actually take to increase their resilience and reduce their vulnerability to natural and man-made disruptions. That data will be gathered as the assessment on the Local Capacity towards Urban Resilience Building and Vulnerability is completed (Output 1.1.1.1.2).

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 11 Baseline Assessment Report

So far, known risk-reducing measures include installation of early warning systems, hazard resistant construction and engineering works, site inspections, and conduct of research. Details on the measures are shown in table below:

Table 5. Comparative Summary of the Baseline Data for Risk-Reducing Measures Implemented by CDI Cities

CDI City

BASELINE DATA FOR RISK REDUCING MEASURES IMPLEMENTED

Other USAID

Projects Initial Assessment SURGE

Assessment

Batangas - TBD

Further assessment yet to be conducted (Output 1.1.1.1.2 Assessment Report on Local Capacity towards Urban Resilience Building and Vulnerability Assessment of Six Cities)

Puerto Princesa - To date, there are 38 risk reducing measures

reported by the CDRRMO

Iloilo - TBD

Tagbilaran - TBD

Cagayan De Oro - TBD

Zamboanga -

DRRMO 2015: 4 reducing measures (2015)

a) Early Warning System; b) Hazard-resistant construction and

engineering works; c) Site Inspections and

Recommendations; and d) Researches

As mentioned in the previous section, Output 1.1.1.1.2 is expected to be completed within Quarters 3 and 4 (April-September 2016) of Year 1.

4.1.4 Stakeholders’ Capacity to address Climate change issues (as a result of USG assistance) In addition to helping local government implement risk-reducing measures, the project will assist the stakeholders of its cities (and not just the LGU itself) to address the consequences of climate change. As no assessment of those stakeholders has been conducted, a baseline of zero (0) has been initially established for Outcome Indicator 1.1.5, “Number of stakeholders with improved capacity to address climate change issues as a result of USG assistance.”

4.1.5 Establishment of Urban Development Learning Centers (UDLCs) [formerly referred to as Urban Resource Centers]

In line with enhancing the capacity of stakeholders to address climate change issues, the project will establish Urban Development Learning Centers (UDLC). Hence, Outcome Indicator 1.1.5: “Number of Urban Development Learning Centers established” [formerly “Number of Urban Resource Center established”].

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 12 Baseline Assessment Report

The project will partner with local institutions to develop the urban development curriculum that will include the latest theoretical developments in the field and studies that are attuned to the local situation in the Philippines. The project will also consider an array of options with participating Higher Education Institutions (HEIs), one each for Visayas and Mindanao, including their modes of collaboration, commitment, activities, learning agenda/approach, and funding support. All these will be incorporated into an action plan that will define the next steps needed to set up knowledge centers in Visayas and Mindanao. Since the centers have not yet been established and are not expected in the project’s first implementation year, the baseline for this indicator is necessarily zero (0). But initial assessments have shown that of the six CDI cities, only Iloilo already has an educational institution that offers urban planning and development courses. The rest are offering engineering and architecture courses, into which resilient urban planning and development may be integrated. Although Iloilo is the only city so far that offers Urban Development courses through University of the Philippines-Visayas, Batangas City is the project city with the most number of institutions of higher learning – 8 – while both Iloilo and Tagbilaran each have 5 and both are considered education hubs within their provinces. Table 7 consequently identifies institutions that could be encouraged to establish centers with assistance from the project, principally because they currently offer engineering and architecture courses:

Table 6. Comparative Summary of the Baseline Data and Potential Institutions that can be partnered with for the Establishment of Urban Development Learning Centers in the CDI Cities

CDI City Baseline (2015)

Possible Institutions that can be established as URDCs (as per rapid assessment of Component Lead 1)

Batangas 0

• Batangas State University • University of Batangas • Lyceum of the Philippines University-Batangas • Colegio ng Lungsod ng Batangas Feeder schools: • Philippine Science High School CALABARZON Region

Campus • Stonyhurst Southville International School • St. Bridget College • Westmead International School

Puerto Princesa 0

• Palawan State University • Western Philippine University

Iloilo 0

• University of the Philippines – Visayas (UPV) – currently offering Diploma Course on Urban Planning

• Central Philippine University (CPU) • University of San Agustin (USA) • University of Iloilo (UI) • West Visayas State University (WVSU)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 13 Baseline Assessment Report

CDI City Baseline (2015)

Possible Institutions that can be established as URDCs (as per rapid assessment of Component Lead 1)

Tagbilaran 0

• Holy Name University (HNU, formerly known as Holy Name College and Divine Word College of Tagbilaran),

• University of Bohol (BU) • Bohol Island State University (BISU), formerly the Central

Visayas State College of Agriculture, Forestry and Technology (CVSCAFT)

• BIT International College, formerly the Bohol Institute of Technology or BIT

Cagayan De Oro 0

• Mindanao University of Science and Technology (MUST) • Xavier University – Ateneo de Cagayan University (ADCU) • Cagayan de Oro College – PHINMA Education Network

(COC-PHINMA) • Capitol University

Zamboanga 0 • Western Mindanao State University (WMSU) • Ateneo de Zamboanga University (AdZU) • Universidad de Zamboanga (UZ)

A more detailed assessment will be completed for Output 1.1.1.3.1: Report on the state of urban development course offerings in local academic institutions. That assessment is expected to be done within Quarter 3 (April-June 2016) of Year 1.

4.1.6 Reduction, Sequestration and/or Avoidance of Greenhouse Gas (GHG)

Emissions

Assuming the planning, funding and implementation of measures meant to respond to the challenges of climate change, this indicator shifts attention to the effectiveness of the measures adopted. The project will therefore report on the amount of Greenhouse Gases reduced over the course of the project’s implementation. Outcome Indicator 1.1.6 will judge: “Greenhouse Gas (GHG) Emissions estimated in metric tons of CO2e reduced, sequestered, and/or avoided as a result of USG assistance.” Although the project itself has not conducted inventories of greenhouse gases in its target cities, it has data from secondary sources on 4 of the 6. Primary data will be collected in pursuit of Output 1.1.4.1.1 by the project’s subcontractor, the International Council for Local Environmental Initiatives (ICLEI). In the meantime, however, the project’s partner city of Puerto Princesa was the very first city in Southeast Asia to be recognized as carbon-neutral back in 2010 with net emissions amounting 1,455.29 kiloton or 1,320,216.88 metric ton of CO2e (Manila Observatory, 2011). This means that Puerto Princesa City reduces more carbon dioxide than it produces. Partial data for the GHG emissions in the CDI cities can be found below:

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 14 Baseline Assessment Report

Table 7. Comparative Summary of Baseline Data for Greenhouse Gas (GHG) Emissions in the CDI Cities

CDI City

BASELINE DATA FOR GREENHOUSE GAS EMISSIONS

Other USAID

Projects Baseline based on Secondary

Sources SURGE Assessment

Batangas - net GHG emissions of 421,884 tons

of CO2e (Batangas CENRO supported by USAID, 2010)

For assessment: Output 1.1.4.1.1 Conduct GHG inventory in four of the six cities - Activity for the inventory not included among the USAID-approved activities for Year 1 - However, it is expected that Output 1.1.1.1.2 Assessment Report on Local Capacity towards Urban Resilience Building and Vulnerability Assessment will enable to provide an initial assessment

Puerto Princesa -

net emissions of 1,455.29 kiloton or 1,320,216.88 metric ton of CO2e

(carbon-neutral) (Manila Observatory, 2011)

Iloilo - net GHG emissions of 1,006,133

tons of CO2e (Iloilo GHG Management, 2013)

Tagbilaran - TBD

Cagayan De Oro - Government GHG emissions 54,845 tons CO2e (Carbonn Registry, 2014)

Zamboanga - TBD

4.1.7 Improvement of Drinking Water Source

Along with its interest in cleaner air is the project’s interest in cleaner drinking water. Among the project’s objectives, improvements in water, sanitation and hygiene (WASH) are fundamental to the resilience and livability of its target cities. Outcome Indicator 1.1.7 consequently emphasizes: “Number of people gaining access to an improved drinking water source as a result of USG assistance” Though the baseline for this indicator is zero (0), it should be noted that based on the project’s rapid assessment, among the six CDI cities, Iloilo has the most glaring need for an improved water supply since studies show that potable water is scarce in the city due to inadequate infrastructure, surface water contamination, and under exploitation of water resources. The Metro Iloilo Water District

supplies water to only

20–40% of the population (SWECO, 1997; Engineer Le Jayme Jalbuena, General Manager MIWD, personal communication, July 14, 2012; Hechanova, 2009). To help respond to the urgency of the situation, Iloilo, Cagayan De Oro, and Zamboanga are also assisted by another USAID project, Be SECURE, with whom the SURGE project will partner. The efforts of both projects notwithstanding, Table 9 shows that water management remains a challenge in even those cities that enjoy the widest coverage of houses. Further assessments will be conducted in those cities not currently receiving assistance from Be SECURE: Output 1.4.1.1.1 Assessment report of Water Service

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 15 Baseline Assessment Report

Providers in Puerto Princesa, Batangas, and Tagbilaran. These assessments will serve as the basis for USG assistance in those cities, with SURGE building on the work of Be SECURE in those cities where both projects are working together to enhance the capacity of city water districts to provide water and wastewater services to their citizens.

Table 8. Comparative summary of Baseline Data and Initial Assessment of Potable Water in the CDI Cities

CDI City Baseline (2015)

INITIAL ASSESSMENT as per data source

Other USAID

Projects

Rapid Assessment of Component

Lead 1/Reports from CPCs

SURGE Assessment

Batangas 0 - 6.6% of HH have no access yet to water

(CBMS, 2012)

Water and sanitation activities and outputs are incorporated in the Y1 SURGE Workplan under Subcomponent 1.4: Increase access to sustainable water supply and sanitation services USAID Approved the following activities and outputs in Year 1: Activity 1.4.1.1 Assess the capacity of water service providers (WSP) in CDI cities Building on the approach of USAID’s Water Security for Resilient Economic Growth and Stability (BeSECURE) Project, SURGE will conduct an assessment of water service providers (WSP) in CDI cities that are not previously covered. The assessment may also cover water sources and determine how water sources can be improved (e.g. inclusion of water infrastructure in the City’s AIP, identification of fund

Puerto Princesa 0 -

3.85% of HH have no access yet to drinking water source (CBMS,

2012)

Iloilo 0

Metro Iloilo Water District

supplies water to only 20–

40% of the population

(Be SECURE,

2013)

Poor water distribution: low coverage of only 20% of HH (World

Bank, 2009);

Tagbilaran 0 -

The total projected water demand in 2010

is 87% for domestic consumption. This is

projected to increase by 13% by 2015.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 16 Baseline Assessment Report

CDI City Baseline (2015)

INITIAL ASSESSMENT as per data source

Other USAID

Projects

Rapid Assessment of Component

Lead 1/Reports from CPCs

SURGE Assessment

Cagayan De Oro 0

Be SECURE

City

2% of the total HH have no access to potable water supply (2010)

sources for water infrastructure, etc.) Output 1.4.1.1.1 Assessment report of Water Service Providers in Puerto Princesa, Batangas, and Tagbilaran (non-BeSECURE cities) Activity 1.4.1.2 Provide technical support to Water Service Providers in CDI cities Output 1.4.1.2.1 Report on capability building activities conducted for CDI cities Moreover, USAID also approved Output D.3.2.2 Training/Workshop for City Environment and Natural Resources Office (CENROs), Water Service Providers

Zamboanga 0 Be

SECURE City

Total HH: 151,001 With access to improved safe water supply: 138,807 (91.9%) Level 1: 14,527 (9.6%) Level 2: 15, 779 (10.4%) Level 3: 108,501 (10.4%) (City Health Office, 2014)

4.1.8 Improvement of Sanitation Facilities As mentioned in the previous section, there are indicators for WASH; and the indicator for Sanitation is: “Number of people gaining access to an improved sanitation facility as a result of USG assistance” (Outcome Indicator 1.1.8). The baseline for this indicator will be zero (0). The rapid assessment conducted by the Component Lead 1 and initial review of available literature for some of the cities, among the group of Batangas, Zamboanga, and Cagayan De Oro have available data on sanitation. For Zamboanga, only 115,891 HH (76.8%) have access to sanitary toilets (Zamboanga City Health Office, 2014). Meanwhile, Batangas and CDO only have 4.15% (2,730 HH) for 2014 and 5% respectively. Part of the assessment for water will include sanitation.

4.1.9 Assessments related to Resilient Urban Planning and Development The majority of the project’s first year activities are assessments. Some of these include assessments of Organization and Skills, Water; Urban Development Course Offerings; Urban Resiliency; GHG, and PPP.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 17 Baseline Assessment Report

For this, the Output Indicator is stated as “Number of assessments conducted” (Output Indicator 1.2.1). As assessments are ongoing and outputs are being consolidated, the current baseline for this indicator is zero (0).

4.1.10 Formulation/Assistance on Plans/Programs The LGUs have a staggering number of government-mandated plans to complete. These include DRR/LEDS Plans, Rapid Action Plan, Public Investment Programs, Annual Expenditures Programs, GHG Management Plans, Water Resource Management Plans, among others. With neither enough staff (nor likely the attention) to complete these plans up to compliance standards, the LGUs are already desperate for the project’s assistance. Hence, Output Indicator 1.2.2 is: “Number of plans and programs formulated/assisted (Output 1.2.2), but as it is an output for the life of project, its initial baseline would be zero (0).

4.2 Desired Impact 2: Environment for Local Economic Development Improved

One of the objectives of SURGE is to continue what the USAID-INVEST Project started in the three original CDI cities with respects to their competitiveness and economic growth. Component 2 therefore aims to consolidate the advances made by Iloilo, Batangas and CDO and encourage the new cities of Zamboanga, Tagbilaran and Puerto Princesa to emulate their successes through the streamlining of LGU processes and the attraction on new investment.

The Project supports the promotion of economic growth through investments. Investment in turn will be encouraged by an enabling environment that fosters efficient government service, secure property rights, and good infrastructure. Hence, the project will focus on the following areas: (1) improving local revenue generation and expenditure management; (2) further reducing the cost of doing business through streamlined and automated business and building and occupancy permitting process; (3) improving land tenure security and land information management; and (4) strengthening local business development, facilitating investment and support services to foster low emission growth.

4.2.1 Improvement of the CDI Cities’ Overall Competitiveness Generally, the CDI cities are among the most competitive cities within their respective categories (as illustrated by Figure 3 from the National Competitiveness Council, below). In fact, 3 of them are among the top 10 cities in the CMCI Overall Competitiveness for 2015. Compared to their rankings for Economic Dynamism, the cities have higher rankings for Overall Competitiveness. As shown in Table 10, of the project’s 4 Highly Urbanized Cities, Cagayan De Oro has the highest ranking (at No. 6), followed by Iloilo (at No. 10). Of the next tier, only Batangas made it to the top 10. Of course, those 3 cities were beneficiaries of the INVEST project, increasing the likelihood that the 3 new CDI cities can follow their example and increase their own competitiveness ranking. See

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 18 Baseline Assessment Report

Table 9. Comparative Summary of the Baseline Data on Cities and Municipalities Competitiveness Index (CMCI) (by data source)

CDI City

BASELINE DATA ON CMCI

Category Other USAID

Projects

NCC CMCI (2015)

Rank within category

SURGE Assessment

Batangas Component City (CC) n/a 10

For Y1, SURGE will provide support to NCC on LCDC and CMCI. It will also develop a framework and indicator system on Sustainable Competitiveness

Puerto Princesa Highly Urbanized City (HUC)

n/a 27

Iloilo Highly Urbanized City (HUC)

n/a 10

Tagbilaran Component City (CC) n/a 34

Cagayan De Oro Highly Urbanized City (HUC)

n/a 6

Zamboanga Highly Urbanized City (HUC)

n/a 15

In anticipation of just this sort of emulation, Outcome Indicator 2.1.1 presumes that the CDI Cities will improve their overall CMCI rankings; “CDI Cities’ CMCI Improved.”

Figure 3. CMCI Ranking (Overall, 2014 and 2015) of selected Cities

Source: NCC

Batangas CDO Iloilo Pto Princesa Tagbilaran Zamboanga

2014 36 2 6 89 28 74

2015 10 6 10 27 34 15

0

10

20

30

40

50

60

70

80

90

100

CMCI Ranking (2014 and 2015)Overall (City Ranking within their Category)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 19 Baseline Assessment Report

Through reforms on fiscal management and the streamlining of business-related permits, the project will contribute to greater efficiency in government operations. The project’s promotion of automated operations in its cities will also seek to reduce corruption by minimizing face-to-face interactions between government officials and their customers. Component 2 will therefore contribute to good governance, which is an important prerequisite for inclusive economic growth and should be reflected in the CMCI rankings.

4.2.2 New business registrations

As a measure of the performance of CDI cities in fostering new investments, new business registrations will be counted so Outcome Indicator 2.1.2 is “Number of newly registered businesses”. As data collection for this indicator is still on-going, this section of the Baseline will be updated as complete data on business registrations in the project’s cities becomes available. Specifically, the project’s USAID-approved Work Plan Output 2.2.1.1.1 obligates the SURGE to conduct an assessment of the Business Permitting & Licensing System (BPLS) in each of its target cities, and data on New Business Registrations are captured by the cities’ Business Permitting & Licensing Offices (BPLO). Newly registered businesses are expected to increase through the course of the project’s implementation.

4.2.3 Increase in locally sourced or municipal revenue

While the Local Government Code of 1991 gave LGUs the authority to impose local taxes, most of them have not been able to maximize this authority and have remained dependent on internal revenue allotments IRA). So Outcome Indicator 2.1.3 will measure “Percentage increase in locally sourced or municipal revenue.” Initial data found in the 2012 Statement of Receipt and Expenditures show that the first 3 CDI cities have experienced an increase in local revenue of more than 50% (during the implementation of the predecessor INVEST project). Of the 3, Batangas leads with a 71% increase, followed by Iloilo with 62% and Cagayan de Oro with 51%. In contrast, Zamboanga’s 2014 BPLS data shows that the city has the lowest percentage increase of locally generated revenues among the 6 cities included in SURGE. Its percentage for 2014 was only 11.62% (see Table 11 below). To get an accurate picture of current revenue, there is still a need for a more up to date data. To get it, the project will conduct a further assessment as Output 2.1.1.1.1 (Assessment on RPT systems in the CDI Cities and capacities within the Assessors’ and Treasurers’ Offices, including recommendations to develop action plans for enhancing these systems). This shall be conducted on Quarters 2-3 (March-July 2016) of Year 1 and this section will be updated accordingly. Table 10. Comparative Summary of the Baseline Data for the Percentage Increase in Locally Sourced/Municipal Revenue in the CDI Cities

CDI City

BASELINE DATA ON PERCENTAGE (%) INCREASE IN LOCALLY SOURCED/MUNICIPAL REVENUE

Other USAID

Projects

Initial Assessment (secondary sources) on %age of Revenues

that are locally sourced SURGE Assessment

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 20 Baseline Assessment Report

Batangas - 71% as per SRE 2012 For further assessment: Output 2.1.1.1.1 Assessment of RPT systems in the CDI Cities and capacities within the Assessors’ and Treasurers’ Offices, including recommendations to develop action plans for enhancing these systems

Puerto Princesa - 20% as per SRE 2012

Iloilo - 62% as per SRE 2012

Tagbilaran - 48% as per SRE 2012

Cagayan De Oro - 51% as per SRE 2012

Zamboanga - 11.62% as per BPLS data 2014

Moreover, as illustrated by the bar graphs below, from 2012 to 2014 Batangas, Iloilo, Tagbilaran, and Cagayan De Oro all had local income greater than 50% of their Total Current Operating Income and are higher than external sources like the IRA, other shares from National Tax Collections, etc. even as the total from external sources also increased over the same period in Batangas and Iloilo.

Source: Bureau of Local Government Finance (BLGF)

Figure 4. Percentage of Total Local and External Sources as per Total Current Operating Income (FY 2012 to 2014)

4.2.4 Increase in expenditures on infrastructure and social services/total spending

With continued increases in their revenue, the cities are likewise expected to increase their expenditures. As urban resilience and social inclusion are among the objectives of SURGE, government spending for infrastructure and social services shall be accounted for (especially those supported with the technical assistance from the project). For instance, as cities improve their capacity to increase local revenues,

0%10%20%30%40%50%60%70%80%90%

100%

% TOTAL LOCAL SOURCES %TOTAL EXTERNAL SOURCES

ZAMBOANGA

PERCENTAGE OF TOTAL LOCAL AND EXTERNAL SOURCES (FY 2012 TO 2014)

BATANGAS PUERTO PRINCESA

iLOILO TAGBILARAN CAGAYAN DE ORO

2012-2014 2012-2014 2012-2014 2012-2014 2012-2014 2012-2014

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 21 Baseline Assessment Report

the project would expect that they increase spending on infrastructure and service delivery. An easily measurable example would be public spending on education, as 50% of the Real Property Tax (RPT) is dedicated to the Special Education Fund (SEF). Increases from other sources could similarly be allocated, as Outcome Indicator 2.1.4 for this intervention is “Percentage increase in expenditures on infrastructure and social services/total spending.” As seen in Table 12 below, initial data from the Iskor ng Bayan shows that a majority of the project’s cities have high expenditure rates. Puerto Princesa has the highest with a “very high” rating on Total Expenditure per Capita, followed by the cities of Batangas and Cagayan De Oro each with “high” a rating. Surprisingly, Iloilo rated lowest. More accurate comparisons between the cities can be made after more comprehensive data has been collected for Output 2.1.1.1.1 (Assessment of RPT systems) are done in Quarters 2-3 (March-July 2016) of Year 1.

Table 11. Comparative Summary of the Baseline Data on the Percentage increase in Expenditures on Infrastructure and Social Services in the CDI Cities

CDI City

BASELINE DATA ON THE PERCENTAGE INCREASE IN EXPENDITURES ON INFRASTRUCTURE AND SOCIAL SERVICES

Other USAID

Projects Initial Assessment (Secondary Sources) SURGE

Assessment

Batangas - High rating on Total Expenditure per Capita (Iskor ng Bayan) For further

assessment: Output 2.1.1.1.1 Assessment of RPT systems in the CDI Cities and capacities within the Assessors’ and Treasurers’ Offices, including recommendations to develop action plans for enhancing these systems

Puerto Princesa

- Very high rating on Total Expenditure per Capita (Iskor ng Bayan)

Iloilo - Low rating on Total Expenditure per Capita (Iskor ng Bayan)

Tagbilaran - Fair rating on Total Expenditure per Capita (Iskor ng Bayan)

Cagayan De Oro

- High rating on Total Expenditure per Capita (Iskor ng Bayan); Based on CPC report: 8.51% increase for 2015

Zamboanga - Fair rating on Total Expenditure per Capita (Iskor ng

Bayan)

The secondary data consulted in establishing this Baseline shows how much this supplemental research is needed. The Statement of Revenues and Expenditures data for 2012-2014 (Figure 5, below) shows that Batangas, Cagayan De Oro and Zamboanga dedicated at least 30% to Infrastructure and Social Services (i.e., Education, Culture & Sports/ Manpower Development; Health, Nutrition & Population Control; Labor and Employment; Housing and Community Development; Social Services and Social Welfare). From 2012 to 2013 Puerto Princesa also increased Infrastructure and Social Services spending.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 22 Baseline Assessment Report

Source: Bureau of Local Government Finance (BLGF)

Figure 5. Percentage of Infrastructure and Social Service Spending in the CDI Cities as per Total Current Operating Expenditure for FY 2012 to 2014

4.2.5 E-readiness E-readiness is defined as the level of preparedness of an LGU to implement ICT projects and to participate in major ICT project initiatives such as E-Government, Smarter Cities, etc. Many cities implement automation initiatives on a piecemeal basis and without proper planning. These result in systems that do not ‘talk’ to each other, thus missing out on the huge benefits that automation offers. To rectify this situation, the project will assess existing systems in its, making use of the e-readiness survey employed by the Department of Science & Technology’s Information and Communications Technology Office (ICTO), and originally developed with assistance from USAID. The results of the assessment will be used to determine the assistance that SURGE can provide, e.g. in relation to BPLS obviously but also in revenue system, construction-related permits, and GIS use. Thus, Outcome Indicator 2.1.5 is “E-readiness of CDI Cities improved.”

The E-Readiness assessment will be conducted within Quarters 3 to 4: May-July 2016, utilizing the official annual survey conducted by DOST-ICTO. That survey has 3 major indicators: 1) ICT Capability, 2) Technology Environment, and 3) Web Presence Maturity. Other sub-indicators include the presence of an ICT Development Plan, internet connectivity, and the presence of an ICT/MIS unit.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BATANGAS CAGAYAN DE ORO ILOILO PUERTO PRINCESA TAGBILARAN ZAMBOANGA

% of Infra and Social Service Spending % Other Expenditures

PERCENTAGE OF INFRASTRUCTURE AND SOCIAL EXPENDITURE (FY 2012 TO 2014) 2012-2014 2012-2014 2012-2014 2012-2014 2012-2014 2012-2014

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 23 Baseline Assessment Report

As shown in Table 13, the most recent E-readiness assessment by DOST-ICTO places 2 of the project’s cities in the top 10 -- Batangas and Cagayan De Oro, with CDO given the highest ranking. Though the project’s other cities did not make the list, they each have automated systems with varying levels of sophistication. Of them, Iloilo is behind relative to the other original CDI cities, while the newly added CDI cities need even more assistance as they are starting from a lower basis.

Table 12. Comparative Summary of the Baseline Data on E-Readiness of the CDI Cities

CDI City BASELINE DATA ON E-READINESS

Other USAID Projects

E-Readiness Assessment (DOST 2014) & Initial Assessment SURGE Assessment

Batangas - OK (one of the top 10) There will be an assessment on E-Readiness that is yet to be conducted by SURGE, but for the purpose of this indicator, SURGE shall use DOST’s official survey

Puerto Princesa - For improvement

Iloilo - For improvement

Tagbilaran - For improvement

Cagayan De Oro - OK (ranked # 1)

Zamboanga - For improvement

4.2.6 Number of Steps, Time, and Signatures in obtaining local permits reduced One immediate application of the efficiencies to be gained from automation is a reduction in the number of steps (and time) required to comply with central government guidelines for the registration and licensing of local businesses. Following up on work begun in the predecessor INVEST, the project will ensure that all of its cities are compliant with the standards of the Upscaling Business Permits and Licensing System (BPLS) Reform Program. Those standards prescribe (1) the use of one unified form; (2) limiting the number of steps to five; (3) reducing processing time to 5 days for renewals and 10 days for new business applications; and (4) reducing the number of signatories required for business applications. The project will assess the current BPLS and over-all e-readiness of its cities, and assist them to remedy deficiencies and reconfigure their automation efforts accordingly. In this regard, Outcome Indicator 2.1.6 is “Number of steps, time, and signatures in obtaining local permits reduced.” As summarized in Table 14, a significant decrease in the number of steps, signatures, and processing time was achieved in Batangas, Cagayan De Oro, and Iloilo during the implementation of INVEST. As the 3 new CDI cities included in SURGE were not beneficiaries of INVEST, they are beginning from a much lower basis. What takes several days for business renewals in Puerto Princesa (4 days and 18 hours), Tagbilaran (4.5 days) and Zamboanga (2-3 days) takes less than a

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 24 Baseline Assessment Report

day for the INVEST cities as per 2016 BPLS Assessment. Therefore, SURGE will help Puerto Princesa, Tagbilaran, and Zamboanga catch up.

Table 13. Comparative Summary of Baseline Data for BPLS Assessment in the CDI Cities

CDI City New

Registration /Renewal

BPLS Indicators

Baseline INVEST BPLS Assessment SURGE Assessment

2012 2013 2014 2016

Batangas

New

Steps 17 3 2 for finalization

Signatures 22 2 2 for finalization

Elapsed processing

time Around 11 D 3 H 21 M 1 H 30

M for

finalization

Renewal

Steps 17 3 2 7 Signatures 14 2 2 2

Elapsed processing

time 1-2 D 5 H 38 M 1 H 27

M 1-2 H

Puerto Princesa

New

Steps no data no data no data no data Signatures no data no data no data no data

Elapsed processing

time no data no data no data no data

Renewal

Steps no data no data no data 20 Signatures no data no data no data 15

Forms no data no data no data 3 Elapsed

processing time

no data no data no data 4 D 18 H

Iloilo

New

Steps 27 18 4 no data Signatures 27 4 1 no data

Elapsed processing

time 2-3 D 17 D Walk-in

1 hour no data

Renewal

Steps 9 11 3 walk-

in; 3+1 1 online

Signatures 13 2 1 10

Elapsed processing

time 3 D 1.5 D

Walk-in 1.5 to 4

H; 2 H 49 M Online < 1 H

to 1.5 H

Tagbilaran

New

Steps no data no data 5 no data Signatures no data no data 2 no data

Elapsed processing

time no data no data 2 D no data

Renewal Steps no data no data no data 11

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 25 Baseline Assessment Report

CDI City New

Registration /Renewal

BPLS Indicators

Baseline INVEST BPLS Assessment SURGE Assessment

2012 2013 2014 2016 Signatures no data no data no data 22

Elapsed processing

time no data no data no data 4.5 D

Cagayan De Oro

New

Steps 17 5 3 4 Signatures 27 7 4 4

Elapsed processing

time 19 D < 1H 30 M to

1 H 34 M 44 S

Renewal

Steps 17 5 3 4 Forms 10 5 1 1

Signatures 27 7 4 3 Elapsed

processing time

2-3 D < 2H < 1H 23 M 52 S

Zamboanga

New

Steps no data no data no data 24 Signatures no data no data no data 19

Elapsed processing

time no data no data 2 H no data

Renewal

Steps no data no data 4 22 Signatures no data no data 1 10

Elapsed processing

time no data no data

2 H - half a day

2-3 D

4.2.7 Land Tenure Security

Issues of land tenure remain a serious concern in the project’s cities. A large proportion of land remains untitled, and there are frequently multiple claims to those tracts that are titled. This uncertainty of ownership impedes the emergence of a land market, prevents lending by local banks and discourages outside investment, all constraining the economic growth of the cities. The project will therefore examine the land tenure situation in each of the cities, in close coordination with the DENR. The project may also explore the possibility of strengthening land management offices in CDI cities and pursue other means to encourage the emergence of a transparent and competitive market in land. Hence Outcome Indicator 2.1.7 will measure the “Number of households who have obtained documented property rights as a result of USG assistance.” Since this indicator is qualified with ‘as a result of USG assistance,’ its baseline would be zero (0). However, rapid assessments of existing land records show that there is a need to intensify the titling of properties in the CDI cities. Despite the issuance of a Memorandum of Agreement with DENR for land titling under the Free Patent Law, the majority of the project’s cities still have to strengthen their land titling process. With better inventories of the land and more secure title for its owners, the cities should see economic and social benefits, decreasing the number

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 26 Baseline Assessment Report

of land disputes, increasing the free flow of capital and enhancing the material security of women and disadvantaged groups. To assist its cities gauge the extent of their current shortcomings in land tenure, further assessments shall be done under Output 2.3.1.1.1: Land tenure profiles for the CDI Cities. This shall be conducted within Quarters 3 and 4 (April-August 2016) of Year 1. Notably, COMPETE, which is another USAID project, has activities in Batangas, Iloilo, and Cagayan De Oro for conversion of tax declarations into land titles as part of their assistance. Details can be seen in the table below:

Table 14. Comparative Summary of Baseline Data on the Number of Households who have obtained Documented Property Rights as result of USG Assistance and Status of Land Tenure in the CDI Cities

CDI City

BASELINE DATA ON THE NUMBER OF HOUSEHOLDS WHO HAVE OBTAINED DOCUMENTED PROPERTY RIGHTS

Baseline (2015)

Status of Land Tenure

As per Rapid Assessment COMPETE activities (USAID Project)

Batangas 0

Titling of properties need to be intensified; only an estimated 30% of properties are titled and there are infra located on untitled properties; for GAD review

Converting Tax Declarations into Land Titles

Puerto Princesa 0

DENR issued a moratorium to Puerto Princesa; double, even tripling titling of one property; no coordination/cooperation between DENR and LGU; for GAD review

-

Iloilo 0 For further assessment; land tenure profiling needs to be done; for GAD review

Converting Tax Declarations into Land Titles

Tagbilaran 0

Several city streets have no titles, likewise with a number of school sites; problems with cadastral surveys with cases filed in court; on-going parcellary mapping; for GAD review

-

Cagayan De Oro 0 MOA with DENR for land titling was not pursued after the change of administration); for GAD review

Converting Tax Declarations into Land Titles

Zamboanga 0

Titling of properties need to be intensified. Most lands in the heart of the city are titled; problems on land tenure are mostly in the periphery; for GAD review

-

4.2.8 Formation of new Public-Private Partnerships (PPP)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 27 Baseline Assessment Report

Although the project includes as one of its indicators an increase in locally generated revenues, none of its cities seem capable of running a for profit business. As these failing government enterprises are losing money, SURGE sees them as ripe for privatization. In addition, there may be new initiatives, such as infrastructure projects, that a city does not have the resources to undertake on its own. In both situations, the solution may be joint ventures between the public and private sectors. Hence Outcome Indicator 2.1.8 is “Number of new USG-supported public-private partnerships (PPP) formed.” Since the indicator is linked to USG support as a result, the baseline is necessarily zero (0). But rapid assessment of potential PPPs showed that public markets (for Puerto Princesa, Iloilo, and Tagbilaran) and transportation terminals/systems (for Batangas and Iloilo) are the most likely immediate candidates for conversion to partnerships. This is detailed in Table 16 below. Other projects will inevitably emerge after elections and the completion of the Executive-Legislative Agendas (ELAs) of the next administration. Table 15. Comparative Summary of the Baseline Data for Public-Private Partnerships (PPP) and other Potential PPPs in the CDI Cities

CDI City BASELINE DATA ON PUBLIC-PRIVATE PARTNERSHIPS

Baseline (2015) Inventory of Potential PPPs (as per Rapid Assessment)

Batangas 0 • Batangas City Public Transport Terminal

Puerto Princesa 0

• Two Public Markets and slaughter house that were privatized in 2012

• Bay walk • St. Paul Subterranean River (Puerto Princesa Underground

River)

Iloilo 0

• A Smart Transport System • Sports Academy • Iloilo Government Center • Rehabilitation of the Central Public Market with Heritage

Component • Rehabilitation of Jaro Big Market • Railway System for Panay Island • Guimaras-Iloilo Ferry System* • Restoration of the Iloilo Downtown Area (for tourism)* • Central Public Market*

*Pre-FS with CDIA

Tagbilaran 0

• City's waterworks system • Slaughterhouse (which used to have triple A rating) • Economic enterprises • Bus Terminal • Public Market

Cagayan De Oro 0

• CDO Food Terminal Center • CDO Solid Waste Management Project

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 28 Baseline Assessment Report

CDI City BASELINE DATA ON PUBLIC-PRIVATE PARTNERSHIPS

Baseline (2015) Inventory of Potential PPPs (as per Rapid Assessment)

• Oro Central and Planned City Extension

Zamboanga 0 • City's Public Market • Other Economic Enterprises

Further assessment on potential PPPs will be conducted as part of Task 1.3.5 Support cities to identify and implement PPPs (to be conducted after Year 1).

4.2.9 Completion of Tax Compliance Studies

With the simplification of LGU processes as one of the key focuses of SURGE, assistance provided to the CDI cities will include Tax Compliance Studies. Such a study includes tax mapping and an assessment of the completeness of existing tax maps through a parcel and building inventory. In addition, the project will evaluate the Assessor’s property database, the functionalities of its property system, and its ability to produce delinquency reports. Thus, Output Indicator 2.2.1 is: “Number of Tax Compliance Studies completed.” As the Tax Compliance are an output for Activity 2.1.1.1 (Complete a Tax Compliance Study), the baseline for all CDI cities is currently zero (0).

4.2.10 Action plans/Recommendations to Streamline/Improve LGU Procedures and

improve investments

Part of the improvement of investments is the streamlining/improvement of LGU procedures, which is also one of the targets of SURGE. Through the assessments that will be conducted by the project as Output 2.4.2.1.1 (Assessment of the business-enabling environment of each of the 6 CDI Cities, which will include the operations of the LEIPO), action plans/recommendations shall be made to further enhance the existing systems in the CDI cities. For this activity, Output Indicator 2.2.2 is: “Number of action plans/recommendations to streamline/improve LGU procedures and improve investments.” With the action plans as outputs, the baseline for this indicator would be zero (0). It is expected that through the course of project implementation, the number of action plans and recommendations will increase.

4.2.11 Establishment and Capacity Building of Systematic Adjudication and Titling

(SAT) Teams As strengthening land tenure is an important activity of Component 2, the SURGE project will deploy Systematic Adjudication and Titling (SAT) Teams to identify impediments to the proper documentation of land in its cities. As already summarized in the section on land tenure, there are existing memoranda with

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 29 Baseline Assessment Report

DENR, they need to be implemented. So there is a need to intensify the documentation of properties to avoid land disputes and increase title security. SURGE will increase the capacity of its cities to inventory government‐owned lands and obtain a Special Patents. Further technical assistance will be provided to ensure gender sensitivity in land titling and improve grievance resolution mechanisms, including alternative dispute resolution (ADR) methods such as arbitration, mediation, conciliation, and negotiation as quicker and more cost effective alternatives to going to court. Thus, Output Indicator 2.2.3 is “Number of CDI Cities with Systematic Adjudication and Titling (SAT) Teams organized and trained.” Being a project output after Year 1, the baseline for this indicator would be zero (0).

4.2.12 Investment promotion activities undertaken by Chambers of Commerce/BSOs/IPCs/OSS and Negosyo Centers as a result of SURGE assistance

Aside from engaging the LGUs, SURGE also intends to engage other investment-related organizations and institutions to improve the business-enabling environment of the CDI cities. The project will work with the private sector to identify the most promising key economic sectors, and initiate discussions on the most strategic potential interventions to accelerate trade and investment acquisition. It will also assess the status and capacity of investment promotion-related organizations including those organized by the city governments, determine where assistance is most needed and will result in the greatest impact, and recommend niche technical assistance in selected cities. Thus, investment promotion activities will be measured by Output Indicator 2.2.4: “Number of investment promotion activities undertaken by Chambers of Commerce/BSOs/IPCs/OSS and Negosyo Centers as a result of SURGE assistance”. As a project output, the baseline would be zero (0). For this indicator, the number of activities are expected to increase over the course of project implementation. Table 17 below shows the initial inventory of organizations/institutions that can be assisted:

Table 16. Comparative Summary of the Baseline Data for Investment Promotion Activities undertaken by Chambers of Commerce/BSOs/IPCs/OSS and Negosyo Centers as a result of USG Assistance in the CDI Cities

CDI City

BASELINE DATA ON INVESTMENT PROMOTION ACTIVITIES AND ORGANIZATIONS

Baseline (2015)

Partial Inventory of Investment Promoting Organizations/Institutions

(as per Rapid Assessment)

Assistance as per COMPETE (other USAID project)

Batangas 0 Negosyo Center, LEIPO, Metro Batangas Chamber of Commerce (MBCC), Batangas Industry Security Alliance,

Development Credit Authority (DCA) - Business Development Services (BDS)

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 30 Baseline Assessment Report

CDI City

BASELINE DATA ON INVESTMENT PROMOTION ACTIVITIES AND ORGANIZATIONS

Baseline (2015)

Partial Inventory of Investment Promoting Organizations/Institutions

(as per Rapid Assessment)

Assistance as per COMPETE (other USAID project)

Batangas Coastal Resource Management Council

Puerto Princesa 0 Negosyo Center, LEIAO, Puerto Princesa Chamber of Commerce

-

Iloilo 0

Negosyo Center, LEIPO, Iloilo Business Club (IBC), Iloilo Local Economic Development (I-LED), Chamber of Commerce and Industry of Iloilo, Inc (CCCII)

Development Credit Authority (DCA) - Business Development Services (BDS)

Tagbilaran 0 Negosyo Center, Bohol Chamber of Commerce and Industry (BCCI), the Bohol Association of Hotels Resorts and Restaurants (BAHRR)

Development Credit Authority (DCA) - Business Development Services (BDS)

Cagayan De Oro 0

Negosyo Center, LEIPO, ORO Chamber (a member of the INVEST Management Committee) and PROMOTE CDO (that chaired the first INVEST Management Committee)

Development Credit Authority (DCA) - Business Development Services (BDS)

Zamboanga 0 Negosyo Center, LEIPO, Filipino-Chinese Chamber of Commerce

-

Notably, all of the CDI cities have Negosyo Centers, while Tagbilaran is the only city without a LEIPO. The inventory of organizations and institutions may still be updated through the course of SURGE implementation.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 31 Baseline Assessment Report

4.3 Desired Impact 3: Connectivity and Access Between Urban and Rural Areas

Improved Component 3 has two overarching objectives: reduce connectivity costs and improve access. Achievement of these objectives will support the cities to promote investments, generate growth, and enhance sustainability. 4.3.1 Time and Cost of transporting goods between CDI city and peri-urban areas

reduced

More efficient and effective connectivity should contribute to job and opportunity-creating trade and investment. Increased connectivity will allow value-adding activities in cities to achieve greater scale. Similarly, additional cargo traffic would justify increased infrastructure investment. Greater connectivity will also allow those in rural areas to take advantage of a wider range of social services and participate in their province’s economic growth and development more easily. Enhancing the transportation of goods between CDI cities and their surrounding areas is consequently one of the project’s objectives, and will be measured by Outcome Indicator 3.1.1: “Time and Cost of transporting goods between CDI city and peri-urban areas reduced.” The modes of transportation in and around each project city (and their effect on trade) are currently being investigated as part of Output 3.2.1.1.1: Assessment of impediments to rural-urban connectivity with focus on constraints to trade and investment acquisition and competitiveness. Assessments on this is currently on-going; therefore, this section is expected to be updated as soon as the studies are completed within Quarters 3 to 4 (April-August 2016) of Year 1.

4.3.2 Simplification of City-Rural Regulations and Administrative Procedures

Similar to Component 2, the project’s third component also seeks to simplify regulations and administrative procedures, specifically those related to urban-rural connectivity. With this, Outcome Indicator 3.1.2 is “Number of city-rural regulations and administrative procedures simplified.” The baseline for this particular indicator would be zero (0), but initial rapid assessments show that there is still a need for further research on such policies. As seen in the following table, only Puerto Princesa has clearly identified policies, regulations or procedures for simplification. The rest of the project’s need further assessment.

Table 17. Comparative Summary of the Baseline Data for City-Rural Regulations and Administrative Procedures in the CDI Cities

CDI City Baseline Partial Inventory of City-Rural Regulations and Administrative Procedures (as per Rapid Assessment)

Batangas 0 Still for further assessment

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 32 Baseline Assessment Report

CDI City Baseline Partial Inventory of City-Rural Regulations and Administrative Procedures (as per Rapid Assessment)

Puerto Princesa 0

• City Ordinance No. 253 (traffic code) • City Ordinance No. 303 concerning fish port management by

the city government FOR ASSESSMENT (found in the 2014-2016 Comprehensive Development Plan) • Amendment of Ordinance No. 171 (Tourism Code) and

formulation of IRR by the Sangguniang Panlungsod • Ordinance on Institutionalization of Community Based

Sustainable Tourism (CBST) • Amendment of Ordinances on Marine Protected Areas and

Fish Sanctuaries to include Ecotourism Guidelines and Carrying Capacities

• Declaration of Babuyan River and its environs as Local Protected Area (Ridge to Reef Approach)

• Amendment of Environmental Code of Puerto Princesa to include policies and guidelines on the utilization of navigational lane for water sports

• Ordinance Creating the Barangay Tourism Council • Amendment of Ordinance No. 57 (Fisheries Ordinance)

concerning provisions on fines and penalties, boat registration and licensing.

• Ordinances on the establishment and protection of fish sanctuary and marine protected areas.

• MOA/JVA /Co-management scheme between PP City Government and DOJ as partners in the optimum utilization of agricultural land within Iwahig Penal Farm

• Preserve (non-negotiable for conversion) the irrigable portion of areas covered by Presidential Proclamation No. 718 for agricultural development purposes (RA 8435 Agriculture and Fisheries Modernization Act); e.g. areas before the Solomon Bridge in barangay Iwahig.

• Activation of the City SMED Council • Revision of the City’s Investment Code

Iloilo 0 Still for further assessment

Tagbilaran 0

• Traffic management sysrems and traffic code • Local investment code (not been approved yet) • Public WIFI policy (piloted in one area) • Policy of DENR on pollution control requirements

Cagayan De Oro 0 Still for further assessment; but Cabotage Law was mentioned

during the rapid assessment

Zamboanga 0

• Zoning ordinance - defines various land uses within the city territories i.e. rural and urban growth areas and corresponding allowed activities.

• Mindanao Regional Spatial Development Framework (a 30-year plan starting in 2016) - Zamboanga adhere to this in terms of its long-term devt plan and connectivity w/ adjacent provinces and municipalities.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 33 Baseline Assessment Report

Once that data has been collected, this section of the Baseline will be updated with additional key national and local policies that could be simplified. The assessments to be completed within Quarters 2-4 (March-September 2016) of Year 1 include: • Output 3.1.1.1.1 - Key national and local policies and regulations that

commonly impede rural-urban linkages in 6 cities identified and analyzed, with primary focus on local policies.

• Output 3.2.1.1.1 - Assessment of impediments to rural-urban connectivity with focus on constraints to trade and investment acquisition and competitiveness.

4.3.3 Beneficiaries receiving improved infrastructure/ transport services (including PPPs)

In line with the intended improved LGU efficiency as exhibited through reduced time and cost on transporting goods and Component 1’s increase in expenditure for transport and social services and Component 2’s formation of USG-supported PPPs, an increase in the number of beneficiaries receiving improved infrastructure/transport is expected through the course of SURGE implementation. And for this, there is an indicator stated as: “Number of beneficiaries receiving improved infrastructure/ transport services” (Outcome 3.1.3). Since improved services referred to in this indicator is for the result of SURGE activities, the baseline would be equivalent to zero (0). It should also be noted that there are also activities for all the cities as part of the COMPETE project implementation in their respective provinces.

4.3.4 Private investment in CDI cities and adjacent peri-urban areas increased

The intended consequence of an improved enabling environment for business of course is an increase in both private investments and adjacent peri-urban area. Thus, Outcome Indicator 3.1.4 is: “Private investment in CDI cities and adjacent peri-urban areas increased.” The baseline data for this is yet to be completed since data collection is still on-going. Data collection for this activity is especially difficult in that it attempts to measure private investment in the areas adjacent to the project’s target cities. Partial data can be seen in the table below:

Table 18. Comparative Summary of Baseline Data on Private Investment in CDI Cities and Peri-Urban Areas

CDI CIty

BASELINE DATA ON PRIVATE INVESTMENTS IN CDI CITIES AND PERI-URBAN AREAS

Other USAID Projects Initial Assessment (as per CPCs) SURGE

Assessment

Batangas - TBD Included in USAID Approved SURGE Y1 workplan Output 2.2.1.1.1 BPLS Puerto Princesa - TBD

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 34 Baseline Assessment Report

Iloilo - TBD Assessment for each of the 6 cities is expected to allow CPCs access to various data including investments (capitalization) from the City BPLOs. However, the recommendations for BPLS should also provide an opportunity for this data to be regularly generated and reported

Tagbilaran - TBD

Cagayan De Oro - TBD

Zamboanga -

For Zamboanga only: Total gross sales declared (renewed businesses) 2014: P 8,186,055,160.96 2015: P 9,541,729,972.08 Total capital declared (New businesses) 2014: P 635,506,566.26 2015: P 559,961,136.00

The baseline data for this indicator will be updated with the help of Output 2.2.1.1.1 BPLS Assessment for each of the 6 CDI Cities.

4.3.5 Small and Medium Enterprises (SMEs) receiving business development

services from USG-assisted sources Connected to investment promotion activities previously mentioned under Component 2, the project expects an increase in the number of Small and Medium Enterprises (SMEs), both within the CDI cities and peri-urban areas. It will be measured by Outcome Indicator 3.1.5: “Number of Small and Medium Enterprises (SMEs) receiving business development services from USG-assisted sources.” Since it is an indicator for ‘USG-assisted sources,’ the baseline would be zero (0).

4.3.6 Improvement of Tourism Management Plans

The modes of transport scrutinized under Component 3 concern more than simply getting goods to market. Transportation is also a major consideration for the expansion of Tourism. As a major source of income for second-tier cities, tourism depends on connectivity between the entry points for arrivals (typically located in urban areas) and the natural attractions that draw tourists (most of which are located in rural areas). Recognizing this connection, the project will assist its target cities strengthen their potential by improving their tourism management. Thus, Outcome Indicator 3.1.6 is “Number of CDI cities with improved tourism management plans.” With improved tourism management plans as an outcome of SURGE assistance, the baseline for this indicator would be zero (0). Rapid assessments on tourism assistance, however, show that only two out of the four CDI cities have official Tourism Management Plans: Cagayan De Oro and Zamboanga.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 35 Baseline Assessment Report

Surprisingly, Puerto Princesa City, which is known for its tourism, has yet to develop a comprehensive Tourism Management Plan. Currently, its tourism strategies are directly integrated in its Comprehensive Development Plan (CDP). In addition, Iloilo will also have to be assisted to come up with a comprehensive plan with the city’s aim to sustain its Meetings, Incentives, Conferences, and Events (MICE) Tourism. At the moment, however, tourism assistance is being provided by the USAID COMPETE project through initiatives such as the Tourism Road Infrastructure Program (TRIP) common to all of the CDI cities except for Zamboanga. (Table 20). Moreover, assessments of Tourism Management (Output 3.3.2.1.1) were not included in the approved SURGE Work Plan activities for Year 1. Table 19. Comparative Summary of Baseline Data on Tourism Management Plans and Assistance provided by USG through COMPETE

CDI City Baseline (2015)

STATUS OF TOURISM MANAGEMENT

As per Rapid Assessment Assistance as per

COMPETE (another USAID Project)

Batangas 0 No Tourism Management Plan yet Tourism Road Infrastructure Program (TRIP)

Puerto Princesa 0

No Tourism Management Plan yet, but has tourism integrated in its

CDP

TRIP, Fast Path Study Tourism Water, San Vicente

Airport, Power Planning

Iloilo 0 No Tourism Management Plan yet despite MICE Tourism TRIP

Tagbilaran 0 No Tourism Management Plan yet TRIP, Power Planning

Cagayan De Oro 0 With a Five-Year Tourism

Management Plan TRIP, Fast Path Study

Zamboanga 0 With a Tourism Management Plan but for further assistance especially

after the Zamboanga Siege -

4.3.7 Conduct of Studies on Rural-Urban Linkages

In support of rural-urban connectivity, SURGE will complete several studies in its first implementation year. These planned studies include value chain studies; barriers to rural-urban linkages; impediments to rural-urban connectivity; logistical/infrastructures/communication assessments; and SME access and linkages with credit and business service providers. The effort will be measured by Output Indicator 3.2.1: “Number of studies on rural-urban linkages conducted.” As these studies will be another project output, the baseline for this indicator would again be zero (0). The studies will be conducted throughout Year 1, but initial rapid assessments show that a good deal of data on value chains has already been collected, while some potential value chains are yet to be explored. For instance, and as shown in Table 21 below, cacao and sea weeds is common to the project’s

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 36 Baseline Assessment Report

cities. The value chains of a number of other products have also been studied by COMPETE.

Table 20. Comparative Summary of the Value Chain Studies in the CDI cities

CDI City Baseline (2015)

VALUE CHAIN STUDIES (by data source)

Rapid Assessment of Component Lead 3 COMPETE (Other USAID Project)

Batangas 0 No VC (as per OCVAS); Potential value chains for development: poultry, vegetables, corn, fruit trees, and cassava

-

Puerto Princesa

0 Possible sectors for further value chain analysis: cashew, cacao, mango, coconut, processed food, handicraft, marine and fisheries resources

Cacao, Seaweeds

Iloilo 0 Bangus and native chicken (as per PCCI-Iloilo)

-

Tagbilaran 0 Possible sectors for analysis: urban agriculture, mariculture production (mud crab, bangus, and tilapia), livestock, mango, banana, coconut, rice, corn, root crops vegetables, sea weeds

Cacao, Carabao Milk Products, Tourism Products

Cagayan De Oro

0 Possible source of the inventory: Preparatory Study on the Mindanao Logistics Infrastructure

-

Zamboanga 0 Cacao, crump rubber, abaca, cardava banana, oil palm.

Promising value chains:

• cacao, fruit trees, mango, agri-fisheries, vegetables, corn, cassava, sardines canning, seaweeds (as per City Agriculture Office and Zamboanga Export Processing Zone)

• rubber, mango, coconut, seaweeds, fish (processed and raw), abaca (as per NEDA & DTI)

• investment priorities, seaweed, rubber, mango, banana

-

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 37 Baseline Assessment Report

4.3.8 Strengthening Local Institutions/Stakeholders on Tourism Management In addition to its assistance to LGUs, the SURGE will also work with local institutions and stakeholders to strengthen their knowledge and skills for tourism management. Looking into the tourism sector can create jobs and new investment opportunities in the cities and surrounding areas. To measure these activities, Output Indicator 3.2.2 will count: “Number of local institutions/stakeholders strengthened on tourism management” (Output Indicator 3.2.2). The baseline would be zero (0) for this indicator since this is a project output, but assessments for those targeted stakeholders is through Output 3.3.2.1.1: Four of the six target cities with the greatest potential provided niche TA to improve tourism management plans and key stakeholders capacitated in managing and implementing destination plans. This will be done after Year 1.

4.3.9 Assessment and Assistance of Metropolitan Coordinating Institutions

and/or Special Purpose Inter-Municipal Institutions

To enhance rural-urban linkages, SURGE will assist existing inter-municipal institutions. Therefore, Output Indicator 3.2.3 is “Number of metropolitan coordinating institutions and/or special purpose inter-municipal institutions assessed and/or assisted.” Just like other output indicators, the baseline for this indicator is zero (0). But rapid assessment show that data on such institutions are yet to be identified. (Table 21) They will be assessed through Output 3.4.2.1.1: ‘Report on possible areas of collaboration with special purpose inter-municipal institutions.’ Initial assessments also show that most inter-municipal alliances are related to:

• environment - Batangas, Iloilo and Cagayan De Oro; • socio-economic development - Batangas, Iloilo, CDO, and Zamboanga.

Table 21. Comparative Summary of Baseline Data and Status of Metropolitan Coordinating Institutions and/or Special Purpose Municipal Institutions per Rapid Assessment in the CDI Cities

CDI City Baseline (2015)

RAPID ASSESSMENT RESULTS

Inventory of Inter-Municipal Institutions

(as per Rapid Assessment)

Status of Inter-LGU Alliances

Batangas 0

• Batangas Chamber of Commerce

• Batangas Coastal Resources Management Foundation

• Batangas Security Alliance

• Metro Batangas Business Club

The inter-LGU alliances in Batangas City are closely collaborating in the areas of enviroment, security, economic and social development. These alliance are all formally organized.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 38 Baseline Assessment Report

CDI City Baseline (2015)

RAPID ASSESSMENT RESULTS

Inventory of Inter-Municipal Institutions

(as per Rapid Assessment)

Status of Inter-LGU Alliances

Puerto Princesa 0 • For further assessment For further assessment

Iloilo 0

• Metro Iloilo Guimaras Economic Development Council (MIGEDC)

• Iloilo Watershed Management Council/Iloilo River Council

There are two identified inter-LGU alliances in the city that can be further strengthened: (1) Metro Iloilo Guimaras Economic Development Council (MIGEDC), which is actively engaged in socio-economic development of the member LGUs of Iloilo and Guimaras provinces; and (2) Iloilo Watershed Management Council/Iloilo River Council, which works for the management of the Calaor river basin, Tigum Aganan watershed basin and the Ibilo Badjano river basins. Further assessment might be needed for the Iloilo Watershed Management Council/Iloilo River Council to further improve it.

Tagbilaran 0

• For further assessment, but it was noted that membership of Tagbilaran in the Panglao Island Executive Committee (PIEC).

PIEC has programs focused on environment and tourism. The PIEC can be expanded to include Tagbilaran City and will cover other support program for the development of the metropolitan area.

Cagayan De Oro 0

• Cagayan de Oro River Basin Management Council (RBMC)

• Macajalar Bay Development Alliance (MBDA),

• Cagayan-Iligan Corridor (CIC) Special Development Project, with a CIC Steering Committee and Project Management Office

Among the planned and existing alliances, the Cagayan de Oro River Basin Alliance is currently being pushed actively by the government and business sector particularly the Oro Chamber of Commerce. It has developed the Oro River Basin Development Plan. However, during the consultation, it was noted that the plan is still in need of review in line with technical and economic feasibility. But most of the inter-LGU alliance have identified and agreed to collaborate in one or more of the following areas: poltical, economic, social, and environmental concerns. These alliances have also prepared their own development strategies, plans and programs that focus on addressing economic and social issues including environmental preservation and conservation.

Zamboanga 0 • Regional Peace and

Order Council – pursuing peace agenda

There is a need for Zamboanga to establish effective inter-LGU coordination with other LGUS in the region, specifically

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 39 Baseline Assessment Report

CDI City Baseline (2015)

RAPID ASSESSMENT RESULTS

Inventory of Inter-Municipal Institutions

(as per Rapid Assessment)

Status of Inter-LGU Alliances

in the Basilan, Sultan Kudarat, Tawi-tawi (BASULTA) and ARMM

• BASULTA Chambers

with that of BASULTA Peninsula, nearby cities and municipalities for it to achieve its objective of becoming a gateway to EAGA-BIMP and serve as hub of economic activities in the region. Establishment of an inter-LGU alliance with strategic development agenda and plans should be explored.

4.4 Baseline per Cross-cutting Indicators

4.4.1 Number of CDI Cities awarded Seal of Good Local Governance (SGLG)

For 2015, none of the CDI Cities were awarded with the Seal of Good Local Governance (SGLG) despite their high rankings on the CMCI. To be a recipient of the Seal, an LGU must: • sustain the practice of accountability and transparency, and espouse a pro-

active financial management (Good Financial Housekeeping) • adequately and effectively prepare for the challenges posed by disasters

(Disaster Preparedness) • be sensitive to the needs of vulnerable and marginalized sectors of the

society (Social Protection) • encourage investment and employment (Business-Friendly LGUs) • protect the constituents from threats to life and security (Law and Order and

Public Safety) • safeguard the integrity of the environment. At the minimum, comply with the

Ecological Solid Waste Management Act of 2000 (Environmental Protection)

With its activities aimed at improving the overall performance of its cities, Outcome Indicator 4.1.1 is “Number of CDI Cities awarded Seal of Good Local Governance (SGLG).” As none of its cities have been awarded the seal yet, the baseline for this indicator must necessarily be zero (0).

4.4.2 SURGE Performance Incentive Fund

Another measure of exceptional overall performance by the cities would be their receipt of incentive funds like in DILG’s Performance Challenge Fund that comes along with their Good Financial Housekeeping and Gawad Pamana ng Lahi. Similarly, the SURGE project shall be designing an incentive system which will be called the “Performance Incentive Scheme” (PIS). PIS will provide incentives to encourage the provision of quality services as well as the implementation of important reforms by partner cities. The PIS will complement existing performance

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 40 Baseline Assessment Report

incentive systems of the government like that of DILG and will be formulated in partnership with relevant agencies. So Outcome Indicator 4.1.2 is “Number of CDI City that have received SURGE performance incentive funds” but access to those funds cannot be measured before the project’ second implementation year, the baseline for this indicator would be zero (0).

4.4.3 Use of Sex-Disaggregated Data (SDD) in Evidence-Based Planning and Processes

As part of gender and development mainstreaming in the CDI cities, SURGE aims to assist the cities utilize sex-disaggregated data for evidence-based planning. The Outcome Indicator 4.1.3 for this activity is: “Number of CDI Cities implementing the use of sex-disaggregated data (SDD).” Based on the initial assessment of the project’s Gender Specialist, the cities currently make limited use of SDD. As seen in the Table below, there is limited usage of SDD, mostly for personnel/human resource purpose at the LGU level. Batangas and Zamboanga do not even have a GAD database yet (although one is planned for Zamboanga in 2016). Thus, the project is needed to help institutionalize the data banking of sex-disaggregated data for LGU management and governance purposes. Table 22. Comparative Summary of the Baseline on Sex-Disaggregated Data Availability and Usage in the CDI Cities

CDI City

BASELINE ON SEX-DISAGGREGATED DATA AVAILABILITY AND USAGE

Other USAID

Projects Initial Assessment SURGE

Assessment

Batangas - No existing GAD database; need to establish GAD database with sex-disaggregated data; Can build on existing database of the LGU

For further assessment in coordination with the Gender specialist

Puerto Princesa - GAD database only with the HRMO; not yet used for

evidence-based interventions

Iloilo - limited GAD database; need to be updated. No clear discussion yet on the use of SDD in evidence based policy or program intervention

Tagbilaran -

With policy cited on GAD Code on collection and use of sex-disaggregated data (SDD) to serve as inputs or bases for planning, programming, and policy formulation.

Cagayan De Oro -

established GAD database with limited SDD (more of personnel data)

Zamboanga No policy on the establishment of GAD Database. However, the GAD database is Scheduled for implementation on 2016

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 41 Baseline Assessment Report

4.4.4 Number of Knowledge Products shared through the Knowledge Management system ‘Knowledge Materials’ are understood to mean leading practices and lessons learned which will be published to serve as a resource for both SURGE and non-SURGE cities and local partners. As one of the outputs, such materials will be accounted for with Output Indicator 4.2.1: “Number of Knowledge Products shared through the Knowledge Management system” Therefore, the baseline for this would be zero (0).

4.4.5 Number of resolutions issued by LGU League of Cities to advocate

for National level reforms affecting local economic environment

The contract awarding SURGE imposes a requirement on the project implementer to assist the League of Cities of the Philippines. Though there is no approved activity for the coordination with the League of Cities in its Year 1 Work Plan, the contract states that:

• Sub‐component 1.4: Increasing access to sustainable water supply and sanitation services - SURGE will assist the League of Cities of the Philippines to advocate for national legislation to make the interest on municipal bonds tax‐exempt, which is key to their success in many countries that use this powerful tool.

• Task 3.1.2: Support advocacy for removal of national‐level policy and regulatory barriers - SURGE will help nationally oriented governance/policy projects, the League of Cities, the Joint Foreign Chambers, and the PCCI create a constituency for policy reform and bring relevant data to their attention.

For the engagement with the LCP, Output Indicator 4.2.2: “Number of resolutions issued by LGU League of Cities to advocate for National level reforms affecting local economic environment.”. Being one of the project outputs, the baseline for this would be zero (0).

4.4.6 Number of SFs, or steering committees organized and actively meeting To encourage the continuity of its initiatives after the period of performance of SURGE ends, the project will encourage the establishment of support networks among the project’s stakeholders. These Stakeholders’ Forums (SF) were launched during the first two quarters of the project’s first implementation year and are envisioned to provide guidance to its assistance to the LGUs, as well as its other major categories of stakeholders – the private sector and academe. As they are conceived, the Forums will ensure broad-based participation in setting the course of the city, and possibly continue to guide the city after the term of the project comes to an end.

To measure the progress and sustainability of these SFs, Output Indicator 4.2.3 will measure the “Number of SFs, or steering committees organized and actively meeting”. Like the majority of output indicators, the baseline for this particular one would be zero (0).

4.4.7 SURGE Tailored Assistance for Results (STAR) Action Plans

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 42 Baseline Assessment Report

During the first implementation year of the project, the main purpose of its Stakeholders’ Forums is to adopt what the project proposal dubbed SURGE Tailored Assistance for Results (STAR) Action Plans. The plans are meant to be strategic documents that guide the completion of the many other government-mandated plans a city must prepare and update each year. Output Indicator 4.2.4 will measure the “Number of CDI City with STAR Action Plans finalized by SFs,” but since the SFs were only recently formed and have not compiled their Action Plans yet, the baseline for this indicator would be zero (0).

4.4.8 Person hours in attendance to training activities organized by SURGE Several capacity building activities/trainings shall be conducted by SURGE to cater to the needs of the personnel of CDI cities and other stakeholders. These trainings will provide them with opportunities to take an active role in the development of various tools, systems and processes. The training might include long-term academic degree programs, short- or long-term non-degree technical courses in academic or in other settings, seminars, workshops, conferences, on-the-job learning experiences, observational study tours, or distance learning. Output Indicator 4.2.5 will hence count: “Person hours in attendance to training activities organized by SURGE.” With this activity is another project output, the baseline would be zero (0).

4.4.9 Person hours in attendance to study tours and exposure visits organized

by SURGE

A separate category of training requiring a separate indicator for measurement would be the number of participants engaged in study tours, whether within the Philippines or other countries. Personnel of CDI Cities and other stakeholders will be given the opportunity to attend various study tours and exposure visits to learn from the experience of other practitioners directly (and to adapt what they learn to the peculiarities of their own cities). To measure this activity, Output Indicator 4.2.6 will count “Person hours in attendance to study tours and exposure visits organized by SURGE.” As this is a project output, its baseline would be zero (0).

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Page 43 Baseline Assessment Report

REFERENCES Asian Development Bank. 2008. Managing Asian Cities. Mandaluyong City: Asian Development

Bank. Gill, Indermit and Homi Kharas. 2007. An East Asian Renaissance: Ideas for Economic Growth.

Washington: The World Bank. GPH-DILG. The Seal of Good Local Governance. Reference on SGLG available at

http://www.dilg.gov.ph/PDF_File/reports_resources/dilg-reports-resources- 2015915_f05b70a93d.pdf.

Joint USG-GPH Technical Team. Partnership for Growth: Philippines. Constraints Analysis. June 2011.

Housing and Land Use Regulatory Board. 2015. Supplemental Guidelines on Mainstreaming Climate Change and Disaster Risks in the Comprehensive Land Use Plan. Manila: HLURB, CCA, UNDP, DFAT.

USAID. GCC Handbook, 10 June 2015 (downloaded 2015-11-21 from http://pdf.usaid.gov/pdf_docs/PA00K4VT.pdf).

USAID. ADS Chapter 253 - Participant Training and Exchanges For Capacity Development (reference available at https://www.usaid.gov/sites/default/files/documents/1865/253.pdf)

USAID Philippines, USAID/Philippines Country Development Cooperation Strategy (2012-2016), 2012.

USAID Philippines, USAID/Philippines Performance Management Plan (2012- 2016), November 6, 2013.

USAID Philippines, 2014 Cities and Municipalities Competitiveness Index: Manual Of Operations (From the USAID-INVEST Project. available at http://pdf.usaid.gov/pdf_docs/PA00K5T2.pdf).