Projects Accepting Applications::Local Government Finance and Development Project

Local Government Finance and Development Project (LOGOFIND)

What is LOGOFIND?

A project of the Department of Finance (DoF) through the Municipal Development Fund Office (MDFO) and funded by the World Bank, LOGOFIND is aimed at providing long-term financing and technical support to the local government units (LGUs) for the implementation of local development projects.

Objectives

The primary aim of LOGOFIND is to promote and enhance the government’s strategic vision of local government autonomy and self-reliance through the following specific objectives:

• To assist LGUs in expanding and upgrading basic municipal and urban infrastructure, services and facilities and making available financial assistance in the forms of loans and grants; and
• To strengthen the LGU capabilities and capacities in municipal investment and development planning, revenue administration, and project preparation and implementation, by extending technical assistance and through a capacity building program that is responsive to the needs of LGUs.

Recipients and Beneficiaries of the Project

The main target beneficiaries of the LOGOFIND are the low-income LGUs, i.e., 3rd to 6th income class provinces, cities and municipalities. However 1st and 2nd income class LGUs may also access LOGOFIND assistance, on a case-to-case basis, and specifically for social and environmental sub-projects that would improve sanitation, environment and quality of life of the urban poor.

Novel Features of LOGOFIND

• Promotes LGU-initiated sub-projects (demand-driven)
• Streamlines and simplifies borrowing procedures and approvals to reduce time and cost
• Provides sub-project prototype designs for use of LGUs to reduce cost of sub-project preparation
• Supports LGU Financing Policy Framework
• Provides loan for sub-project preparation (feasibility study)
• Provides training and capacity-building program free-of-charge
• Provides technical assistance to improve LGU fiscal performance free-of-charge

Additional Benefits from LOGOFIND

Sub-loans and Sub-grants for LGU Sub-Projects

This assistance aims to finance expansion, rehabilitation and improvement of basic infrastructure, social and environmental services and facilities, including equipment and consultancy services. These items are grouped together as one of the components of the LOGOFIND Project and collectively called as sub-projects to distinguish them from the term "Project" which refers to the LOGOFIND. Similarly, the terms "sub-loans" and "sub-grants" are used to describe the types of LOGOFIND financing to distinguish them from the terms "loan" and "grant" used in the LOGOFIND World Bank Loan Agreement.

Technical Assistance for LGU Training and Capacity Building

Aims to upgrade and enhance the technical, as well as technological capacities of the LGUs in development planning, municipal finance and revenue enhancement, project management, and social and environmental assessment, among other things. All LGUs whose sub-projects have been approved for LOGOFIND financing will automatically qualify to receive this assistance, in the form of training, technology transfer, and new or innovative capacity-building methods and techniques, such as distance learning, LGU twinning, NGO/private sector-led upgrading method, etc.

Technical Assistance for LGU Resource Mobilization

Aims to improve and enhance real property tax administration, revenue generation and credit worthiness of LGUs. This includes developing new initiatives to increase local income and systems to improve monitoring of LGU fiscal performance and financial reporting.

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