DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)

DILG Memorandum Circular No.__

Date: ________________

TO : LOCAL CHIEF EXECUTIVES, MEMBERS OF THE LOCAL

SANGGUNIAN, MEMBERS OF THE LOCAL FINANCE COMMITTEES,
HEADS AND DIRECTORS OF THE CENTRAL AND REGIONAL
OFFICES/FIELD OFFICES OF DILG AND ALL OTHERS
CONCERNED

SUBJECT : POLICY GUIDELINES AND PROCEDURES IN THE

IMPLEMENTATION OF THE F.Y. 2018 LOCAL GOVERNMENT
SUPPORT FUND-ASSISTANCE TO MUNICIPALITIES (LGSF-AM)
PROGRAM

1.0 BACKGROUND

Local governments confront rising public expectations regarding the delivery of

services. Despite more than two decades of implementation of Republic Act (R.A.)
No. 7160 (Local Government Code of 1991), local governments still face various
challenges in the exercise of devolved service delivery functions. Foremost among
these is the raising of sufficient funds for local development.

Part of the F.Y. 2018 Local Government Support Fund (LGSF) is the Assistance to
Municipalities (AM) Program, which seeks to equitably assist all municipalities in the
delivery of basic services by providing financial subsidy to municipalities for the
implementation of their priority programs and projects.

2.0 PURPOSE

This Memorandum Circular is being issued to prescribe the general policies and
procedures in the implementation of the AM Program and ensure that all concerned
are able to abide by the prescribed processes and be accountable for the overall
implementation of the Program.

3.0 LEGISLATIVE COMPLIANCE

Cognizant of the need to provide further support to the Municipalities to enable

them to fully carry out functions devolved to them while at the same time, building
their capacity towards genuine fiscal autonomy, the National Government has
scaled up its efforts to ensure meaningful devolution by providing a Local

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 Government Support Fund (LGSF) under the R.A. No. 10964 otherwise known as
F.Y. 2018 General Appropriations Act (GAA).
4.0 COVERAGE OF THE PROGRAM

The Program covers 1,373 municipalities specified in the F.Y. 2018 GAA, R.A. No.
10964. As provided in the second paragraph of Section 2 - Assistance to
Municipalities of the Special Provisions of the LGSF under the F.Y. 2018 GAA, page
585, the projects to be funded under the Program were culled out from the Local
Development Investment Plans (LDIPs) of municipalities and shall be limited to:

4.1 Local Access Roads

4.2 Local Bridges
4.3 Potable Water System Projects
4.4 Evacuation Center and Disaster Risk Reduction-related equipment
4.5 Small Water Impounding Projects
4.6 Rain Water Catchment Facilities
4.7 Sanitation and Health Facilities
4.8 Municipal Drug Rehabilitation Facility

5.0 DEFINITION OF TERMS

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

5.1 Aide Memoire – Refers to an official document (Annex I) that summarizes

the findings, recommendations, and agreements as a result of the project
monitoring visit conducted by the DILG Technical Team.

5.2 Certificate of Completion and Acceptance – Refers to a document issued

by the LGU (Annex L-1, if project is implemented By Contract), or issued by
the LGU and the End-user (Annex L-2, if project is implemented By
Administration), accepting the project after 100% physical completion based
on the Final Completion Inspection Report by the LGU Inspectorate Team
(Annex K). The Certificate is signed by the LCE for projects implemented By
Contract, or signed by the LCE and the End-user for projects implemented By
Administration.

5.3 Certificate of Final Acceptance1 – Refers to a document (Annex O) issued

by the LGU upon final acceptance of the works, after the one-year Period of
Warranty (Defects Liability Period) and after all defects, deficiencies and
failures, if any, have been corrected and supplied, based on the Final
Acceptance Inspection Report by the LGU Inspectorate Team (Annex N). The
Certificate is signed by the LCE.

5.4 Disaster Risk Reduction (DRR) - Related Equipment – Refers to motor

vehicle or rescue equipment/tools used for immediate response and
rescue/relief operations during disasters and calamities.

5.5 End-user – Refers to the project beneficiary/ies (i.e. barangay/s, etc.) who
will be the signatory/ies on the Certificate of Acceptance (Annex L-2) for
project implemented By Administration.
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Section 62.2 of the 2016 RIRR of R.A. No. 9184
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5.6 Evacuation Center – Refers to a place designed and constructed to protect
people living in the locality during an emergency, especially during natural
disasters such as typhoons, flooding, and earthquake.

5.7 Final Acceptance Inspection Report – Refers to a document (Annex N)

that summarizes the narrative of the Inspectorate Team’s findings during the
conduct of Final Acceptance Inspection. It indicates defects/deficiencies
observed by the Inspectorate Team and repair works done by the contractor
after the one-year Defects Liability Period (Period of Warranty). If the initial
conduct of Final Acceptance Inspection shows defects/deficiencies, use the
Acceptance Inspection Report form (Annex M) instead of this report form.
Attach the previous Acceptance Inspection Reports, if any.

5.8 Final Completion Inspection Report – Refers to a document (Annex K)

that summarizes the narrative of the Inspectorate Team’s findings during the
conduct of Completion Inspection. It indicates any defects/deficiencies
observed by the Inspectorate Team and repair works done by the Contractor.
If the initial conduct of Completion Inspection shows defects/deficiencies, use
the Completion Inspection Report form (Annex J) instead of this report form.
Attach the previous Completion Inspection Reports, if any.

5.9 Geo-resistivity Study - Refers to a field survey that locates and identifies
areas that have groundwater potential.

5.10 Inspectorate Team – Refers to the LGU Monitoring Team that is tasked,
among others, to conduct punch-listing prior the issuance of the Certificate of
Completion and Acceptance (Annex L-1 if implemented By Contract or Annex
L-2 if implemented By Administration) and Certificate of Final Acceptance
(Annex O).

5.11 Local Access Roads and Bridges – Refers to local roads, specifically
municipal and barangay roads and its bridge components that enhances the
connectivity of the LGU road network. These provide constituents with better
access to basic services, or support the economic and commercial growth of
the LGU by improving the mobility of products, goods, and services.

5.12 Monitoring – Refers to the method of collecting and analyzing information to

determine the program’s development or progress in reference to its overall
objectives. Monitoring outputs are used to come up with sound management
decisions.

5.13 Municipal Drug Rehabilitation Center – Refers to a treatment and

rehabilitation center used exclusively for the non-residential (outpatient)
treatment and rehabilitation of drug dependents. A Non-Residential
Treatment and Rehabilitation Center is a facility that provides diagnosis,
treatment, and management of drug dependents on an outpatient basis.

5.14 Notice of Authority to Debit Account Issued (NADAI) – Refers to a

document issued by the Regional Bureau of Treasury (BTr) to the Municipality
informing that the funds have been deposited into the general fund account.

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 5.15 Notice of Cash Allocation (NCA) – Refers to the Cash authority issued by
the DBM to Central, Regional through the authorized government servicing
banks of the Modified Disbursement Scheme (MDS), to cover the cash
requirements of the agencies.

5.16 Notice of Defects/Deficiencies – Refers to a document (Annex P) issued

by the LGU to officially notify the Contractor (if By Contract) or the LGU
Implementing Office (if By Administration) of the noted defects/deficiencies
and required corrective repair works found during Punch-listing.

5.17 Office of Project Development Services - Project Management Offices

(OPDS-PMOs) – Refers to the established three (3) sectoral offices under
the OPDS of the DILG, namely 1) Water Supply and Sanitation PMO; 2) Local
Access Roads PMO; and 3) Disaster Risk Reduction and Other Infrastructure
PMO, which shall be responsible for the overall program management of AM.

5.18 Oversight Project Monitoring Office (OPMO) - Refers to the office

established in the DILG to: (i) ensure, among others, that the Local
Development Council (LDC) in LGUs at all levels are fully functional and shall
comply with the requirements provided in Title VI of R.A. No. 7160; and (ii)
ensure that all local development investment programs are aligned with the
results matrix of the Philippine Development Plan, as provided in the Special
Provisions F.Y. 2018 GAA under XV, Department of the Interior and Local
Government, Office of the Secretary, (2) Support for the Local Governance
Program.

5.19 Period of Warranty2 – Refers to the one (1) year Defects Liability Period
within which the Contractor guarantees the quality of work he/she had
contracted and completed as defined in the DPWH D.O. 99 Series 2015. It
shall commence upon issuance of the Certificate of Completion and
Acceptance as defined in Section 5.2 of this Guidelines and ends after the
issuance of the Certificate of Final Acceptance as defined in Section 5.3 of
this Guidelines. In addition to the regular repairs done by the Contractor
during the Period of Warranty, at least two (2) weeks before its expiry date,
the project shall again be inspected by the Inspectorate Team to determine
any defects thereon. All discovered defects, if any, shall be repaired by the
Contractor (if project is implemented By Contract) or by the LGU (if project is
implemented By Administration) to the satisfaction of the Inspectorate Team
after which the Certificate of Final Acceptance shall be issued to the
Contractor by the LGU and/or by the End-user.

5.20 Potable Water – Refers to the water that has passed the Potability
Test/Water Quality Test.

5.21 Potability Test/ Water Quality Test - Refers to the physical, chemical,
and bacteriological examinations of water from newly-constructed systems or
sources before and during construction, before they are operated and opened
for public use, and a regular periodic conduct of the same after completion as
part of the project sustainability.

5.22 Projects – Refers to the projects culled out from the LDIPs of municipalities
and shall be limited to: (i) local access roads; (ii) local bridges; (iii) potable
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Section 62.2.2 of the 2016 RIRR of R.A. No. 9184
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 water system projects; (iv) evacuation centers and disaster risk reduction-
related equipment; (v) small water impounding projects; (vi) rain water
catchment facilities; (vii) sanitation and health facilities; and (viii) municipal
drug rehabilitation facilities, as provided in the second paragraph of Section
2-Assistance to Municipalities of the Special Provisions of the LGSF under the
F.Y. 2018 GAA, page 585.

5.23 Project Completion – Refers to 100% physical accomplishment of the

works, or goods as per contract/approved Program of Works.

5.24 Public Financial Management (PFM) – Refers to all aspects of resource

mobilization and expenditure management in government. It is about the
way government mobilizes resources and manages its expenditures to deliver
essential services to its citizens along the areas which generally improve the
lives of citizens.

5.25 Punch-listing – Refers to the activity conducted by the Inspectorate Team

when the project reaches 95% physical accomplishment (coinciding with the
Pre-final Inspection) to determine the overall completeness of the works.
Punch-list is secured and usually attached to the Completion Inspection
Report (Annex J). It will contain, among others, the remaining works, work
deficiencies for necessary corrections, and the specific duration/time to fully
complete the project considering the approved remaining contract time.

5.26 Rainwater Catchment Facility – Refers to a structure used to collect,

convey, and store rain water from the roof surface area of a government-
owned facility for domestic use. It should have the four basic elements:(1)
collection (catchment) area; (2) conveyance system consisting of pipes and
gutters; (3) storage facility; and (4) delivery system consisting of a tap or
pump.

5.27 Regional Hubs (RHubs) – Refers to the Regional WATSAN Hubs composed
of higher educational institutions (university/college), water districts, private
sectors, and NGOs, that will assist the DILG in capacity building of the
Municipalities.

5.28 Sanitary Toilet and Hygiene Facilities - Refers to a secured permanent

structure providing the public a sanitary and hygiene facilities for urination
and defecation.

5.29 Small Water Impounding Projects (SWIP) - is a water harvesting and

storage earthfill structure constructed across narrow valleys or depression
consist of an earth embankment spillway, outlet works, and canal facilities.

5.30 Unimplemented Projects – Refers to projects which have not successfully

completed the bidding process or if in case of By Administration, projects that
are not 100% physically completed until December 31, 2019.

5.31 Variation Orders – Refers to modification in the scope of works in a

construction or supply contract in the form of addition, substitution, or
omission from the original scope of works, the issuance of which shall be in
accordance with Annex E of the Revised IRR of R.A. No. 9184.

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 5.32 Warranty Security – Refers to the financial instrument submitted by the
Contractor/Supplier/Municipality concerned in the form of cash, letter of
credit, bank guarantees, surety bond callable on demand, to guarantee
against structural defects/failures in the case of works, or against
manufacturing defects in the case of goods, during the applicable Period of
Warranty after project acceptance, the posting of which shall be consistent
with the relevant provisions of the R.A. 9184 and its Revised IRR.

5.33 Water Source Validation – Refers to the confirmation of viability of water

source in terms of quality and quantity to be developed for the intended
beneficiaries.

5.34 WATSAN (iWaSH) Council – Refers to the local oversight body on Water
Supply, Sanitation and Hygiene (iWaSH/WATSAN) matters of the whole
locality. It also serves as governance and coordination body for the
implementation of iWaSH at the local level.

6.0 POLICY CONTENT AND GUIDELINES

6.1 Fund

6.1.1 AM F.Y. 2018 GAA (R.A. No. 10964)

The amount of Eleven Billion Seven Hundred Fourteen Million One

Hundred Thirty-Three Thousand Pesos (Php11,714,133,000.00)
appropriated under the Local Government Support Fund-Assistance to
Municipalities (LGSF-AM) Program pursuant to Paragraph 1 Section 2
of the Special Provision under the Local Government Support Fund of
the F.Y. 2018 GAA.

6.1.2 Fund Allocation

As specified in Special Provision No. 2 of the LGSF in the F.Y. 2018

GAA, budget allocation for Municipalities is determined based on equal
share, fiscal capacity, per-capita share, and share for good
performance.

6.2 LGU Counterpart

The LGU shall provide cash counterpart for the following:

6.2.1 In case the project cost exceeds the national subsidy and shall be
deposited into the trust account used for the implementation of the AM
projects.

6.2.2 All expenses incurred in the conduct of preliminary activities (e.g.

social preparation, community consultations, feasibility study/project
proposal preparation, procurement activities, etc.), and other
administrative costs in the supervision of the project during
implementation including the hiring of Project Engineers (if current
manpower is not sufficient), and installation of community billboards.
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 6.2.3 Expenses incurred in attending trainings/meetings/workshops related
to project implementation.

6.3 Fund Release

6.3.1 The release of funds under the AM Program shall be subject to the
compliance of the concerned municipalities with the following
conditions vis-a-vis based on the assessment, to wit:

6.3.1.1 The requirements of the DILG Seal of Good Financial

Housekeeping (GFH);

6.3.1.2 The requirements of the DILG Local Development Council

functionality; and

6.3.1.3 Public Financial Management (PFM) systems and adoption

of the corresponding PFM measures.

6.3.2 The deadline for compliance with the requirements shall be until 30
June 2018. Funds for the non-compliant Municipalities shall no
longer be released.

6.3.3 The DILG, through the OPMO, shall consolidate the list of the
municipalities that have complied with the conditions for fund release
under Items 6.3.1 and 6.3.2 hereof.

6.3.4 The DILG shall endorse to the DBM the list of municipalities eligible
for fund release and the projects to be funded and their corresponding
cost (per project).

Based on the endorsed list of Municipalities, the DILG, through the

OPDS-PMOs, shall disseminate the list to DILG-ROs and prepare
letters to LGUs informing them of their eligibility to receive the fund
allocation for their approved projects and advising them of the
documentary requirements for submission to the concerned DILG-RO
through the MLGOO.

6.3.5 Subsequently, upon endorsement of the compliant Municipalities by

the DILG and in accordance with the established mechanisms, the
DBM will issue the corresponding Notice of Cash Allocation (NCA) to
the Modified Disbursement System (MDS)-Authorized Government
Servicing Bank (AGSB) and the Advice of NCA Issued (ANCAI) to the
BTr, which will directly download the funds to the Municipalities.

6.3.6 In accordance with the established mechanisms, the funds will be

directly downloaded by the BTr to the Municipalities thru the issuance
of the ADA to the AGSB concerned. A Notice of Authority to Debit
Account Issued (NADAI) will likewise be issued by the BTr. Copies of
NADAI will be furnished to the DBM, COA-Regional Offices, and DILG-
OPDS and Regional Offices (ROs) concerned, as well as the Local
Auditors in charge of the beneficiary Municipalities.
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 6.3.7 All other applicable provisions under DOF-DBM Joint Circular No.
2016-1 dated January 4, 2016 shall be observed.

6.4 Fund Management

6.4.1 Consistent with Section 7 of the Special Provisions and Section 90 (c)
of the General Provisions of the FY 2018 GAA, R.A. No.10964, the
funds shall be released directly by the BTr to the beneficiary LGU
through AGSBs. The amount released to the Municipalities shall be
recorded as Trust Fund to be used for the specified purpose.
Moreover, the Municipality shall maintain a separate subsidiary ledger
for each project to record each transaction.

6.4.2 Within 15 days after receipt of the fund, the beneficiary LGU thru the
Municipal Treasurer shall confirm with the DILG-RO through DILG-PO
and concerned MLGOO that the funds have been recorded as Trust
Fund using the template shown under Annex A (Municipality’s
Confirmation on the Receipt of 2018 AM Fund) hereof.

6.4.3 The Municipality shall exclusively utilize the fund (a portion of the
fund mentioned in Section 6.1 and Section 6.2.1 of this Guidelines)
for the implementation of the project for its intended purpose, in
accordance with the existing government budgeting, procurement,
accounting and auditing laws, rules and regulations.

6.4.4 The Municipality may use the difference between the Approved
Budget for the Contract and Contract Award Price to finance Variation
Orders for the same project, subject to Section 6.5.3.9 of this MC.
Variation Order mentioned herein strictly refers to the Variation
Orders as defined and as allowed in Item 1, Annex E, of the 2016
Revised Implementing Rules and Regulations for R.A. No. 9184.
Otherwise known as the “Government Procurement Reform Act”.

6.4.5 Reversion of Unutilized 2018 Funds to Bureau of Treasury (BTr)

6.4.5.1 Consistent with Section 90 (c) and Special Provision 7 of the

LGSF under the Allocations to LGUs in the F.Y. 2018 GAA
R.A. No. 10964, the funds that remain unutilized as of
December 31, 2019 shall be reverted to the National
Treasury by the recipient Municipalities. However, if at any
point before December 31, 2019, the Municipality
determines that the funds cannot be utilized, e.g. when the
program or project cannot be implemented for any reason or
the same has been funded from other sources, the amount
received by the Municipality shall be immediately reverted to
the National Treasury (same as BTr).

6.4.5.2 The Municipality shall revert to the BTr the unutilized funds
after the completion of the projects as recognized by the
Municipal Accountant within the year after the Final
Payment.
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 6.4.5.3 The DILG may demand LGUs to revert the fund subsidy for
specific project which has continually digressed conformance
to any or all of the monitoring parameters (Annex R) set by
the DILG and/or pursuant to applicable Sections of R.A. No.
10964.

6.4.5.4 The Municipal Accountant shall initiate the preparation of

vouchers and the Municipal Treasurer shall cause the
remittance of the unutilized fund to the BTr.

6.4.5.5 The Municipality shall provide copy to DILG-RO through

DILG-PO and concerned MLGOO of the said transaction.

6.5 Project Implementation

The Municipality shall be accountable for the overall implementation of the

projects. The Municipality shall ensure that the designs, plans, specifications,
and construction of projects are in accordance with the National Government
(NG) standards and within the range of costs of materials, labor, equipment,
etc., and project duration of similar projects being implemented by a National
Government Agency (NGA) in the same locality.

Detailed Engineering Designs (DEDs) and Programs of Works (POWs) shall be

prepared in accordance with the NG standards and relevant provisions
stipulated in the F.Y. 2018 GAA (Annex G).

6.5.1 Preparation and Submission of Documentary Requirements

6.5.1.1 Within two (2) months after receipt of funds, except for
Potable Water System Projects which will be three (3)
months, the Municipality shall submit to DILG-RO through
DILG-PO and concerned MLGOO the following:

Duly notarized Certification (see template under Annex B-1

to Annex B-8 hereof) prepared by the Municipal Engineer
and Municipal Planning and Development Coordinator, and
signed by the Local Chief Executive (LCE) attesting that:

I. For infrastructure projects:

1. The DED and the POW have been prepared and approved
in accordance with the NG standards and relevant
provisions of the R.A. No. 10964 (FY 2018 GAA) (refer to
Annex G) and other applicable laws and issuances.

The approved DED and POW shall be attached to this

Certification (Annex B-1 to B-8, as may be applicable).

Note: The Municipality may request technical assistance in

the preparation of DED/POW from the DILG.

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 In case that the Municipality resorted to Design and Build
(D&B) scheme, the provision of the Section 7 of Annex G
of the 2016 Revised IRR of R.A. No. 9184 shall be
included in the Certification in lieu of the DED and POW.

ii. All bidding documents have been completed and the

Municipality is ready to proceed with publication of
Invitation to Bid/Advertisement (ITB/Ad).

iii. As may be applicable, Environmental Compliance

Certificate (ECC)/Certificate of Non—Coverage (CNC),
National Commission on the Indigenous People (NCIP)
and Water Permit applications have been submitted to the
agencies concerned.

iv. The site of the project has no issue/problem on Land

Ownership and/or Road Right-of-Way (RROW).

v. Project Specific Requirements

1. For Potable Water System Project

The water source has been validated by the Municipal

Engineer and has been found to be:

1.1 Feasible for supplying water to the intended

beneficiaries (based on the water source
assessment feasibility study); and

1.2 Potable for drinking or scientific or engineering

interventions/measures have been included in the
design to make the water potable. Water is
potable if it has passed the Potability Test/Water
Quality Test conducted by DOH accredited
laboratory.

Note: DILG Engineer may verify the yield of the water

source, as applicable.

1.3 For Vertical Structures for Potable Water Supply

Projects (i.e. Ground/Elevated Water Tank,
Reservoir, Filtration Facilities, Pump House, etc.)

1.3.1 The project site is located in safe zone

based on the MGB hazard map; or

1.3.2 The project is located in hazard zone but

engineering mitigation measures have been
included in the design to address the
potential problems

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2. For Sanitation Toilet and Hygiene Facilities

2.1 Project location has an existing functional water

supply system; and

2.2 Project location is situated in public place owned

by the government.

3. For Rain Water Catchment Facilities (RWCF)

3.1 RWCF will be installed in a government owned

facility;

3.2 Design is in compliance with DILG’s Memorandum

Circular 2017-76 (Policies and Guidelines on the
Implementation of Rainwater Collectors; and

3.3 RWCF shall be primarily used for non-potable

pusposes such as, but not limited to, general
cleaning, flushing of toilets, etc. unless
adequately treated, filtered or boiled.

4. For Local Access Roads

4.1 Pay Items, payment measurement, specifications,

and quality control for the project shall be in
accordance with the DPWH Standard
Specifications for Highways, Bridges and Airports,
Volume II Edition 2013, DPWH D.O. No. 5 Series
of 2017 Revised Standardized Pay Items of Works
for Civil Works Construction For Infrastructure
Projects, and DPWH Highway Safety Design
Standards, Part 2, Road Signs and Pavement
Markings Manual, Series May 2012;

4.2 Surface Course-Item 311(1)-PCCP

(Unreinforced), Thickness: 0.2 (minimum);

4.3 Provision of adequate road drainage structures

(i.e. RCPC-minimum 0.910 m. diameter, RCBC,
side drains, ditch, curb and gutter, etc.) to
convey surface water run-off;

4.4 Provision of adequate base/subbase

course/raising embankment to mitigate roadway
flooding, where needed;

4.5 Provision of road safety structures, (i.e.

pedestrian sidewalks, guardrails, road signage,
pavement markings, etc.), where needed;
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 4.6 Provision of other road components (i.e. slope
protection, street lights, etc.), where needed;

4.7 Accessibility Requirements for Persons with

Disability (refer to DPWH D.O. No. 37, Series of
2009), where needed;

4.8 DED and POW are prepared in accordance with

the following minimum design based on the
DPWH Design Guidelines, Criteria and Standards
(DGCS) Volume 4, 2015 Edition:

Municipal Road: (all dimensions in meters)

 RROW: 15.0 (minimum)
 Pavement Width: 6.1 (minimum, two lanes)
 Shoulder width: 1.5 in each side, Item 200
(minimum material)

Barangay Road: (all dimensions in meters)

 RROW: 10.0 (minimum)
 Pavement Width: 4.0 (minimum, two lanes)
 Shoulder width: 1.5 in each side) Item 200
(minimum material)

Note: Exceptions to the abovementioned

standards in Section 6.5.1.1 Item I.v.4.8
may be considered in cases where the
actual terrain/project site cannot
accommodate the abovementioned design
due to justifiable cause (i.e. due to
environmentally critical sections, etc.). In
such cases, the Municipality shall provide
justification stating the reason and details
of adjustment made in the design and
inclusion of engineering mitigation
measures (i.e. additional road safety signs,
warning signs, retaining walls, covered
ditch, paved shoulder, etc.) included in the
DED, signed by the Municipal Engineer and
approved by the LCE. The document shall
be attached to the approved DED.

5. For Local Bridges

5.1 Pay Items, payment measurement, specifications,

and quality control for the project shall be in
accordance with the DPWH Standard
Specifications for Highways, Bridges and Airports,
Volume II Edition 2013, DPWH D.O. No. 5 Series
of 2017 Revised Standardized Pay Items of Works
for Civil Works Construction For Infrastructure
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 Projects, and DPWH Highway Safety Design
Standards, Part 2, Road Signs and Pavement
Markings Manual, Series May 2012.

5.2 Design Considerations for Bridges and

Footbridges:
 Permanent structures only (concrete/steel)
 Structural design based on AASHTO HL-93
Loading, using peak ground acceleration for
seismic analysis and 50-year flood frequency
for hydraulic analysis
 Hydraulic clearance/freeboard: 1.5 (rivers
carrying debris) and 1.0 (other bridges)
 Vehicular Vertical Clearance (if above
roadway): not less than 4.88 plus allowance of
0.15 meters for future road resurfacing
 Navigational Vertical Clearance, if above body
of water: Vertical Clearance = HWL + HV + K
(where HWL–highest water level recorded
within the area of responsibility, HV–height of
vessel, K–1.0 meter allowance)
 Conduct of Soil Analysis and Boring Tests of the
project site
 Provision of adequate standard drain pipe: 100
mm. diameter G.I. pipe (for concrete deck)
 Provision of load and dimension restriction
signs at each end
 Provision of miscellaneous structures for the
protection of foundation/slopes, as needed
 Light fixtures, as needed

5.3 DED and POW are prepared in accordance with

the following minimum design:

Bridge component of Municipal / Barangay Roads:

(all dimensions in meters)
 Carriageway: (a) 4.0 (minimum) for bridge
adjacent to roads with pavement width less
than or equal to 4.0; (b) 6.10 (minimum) for
bridge adjacent to roads with pavement width
greater than 4.0; (c) may adapt 6.10 or higher
value for future improvement of roads adjacent
to the bridge
 Pedestrian sidewalk: (minimum 1.20 with
railings and posts, at each side)

Footbridges: (all dimensions in meters)

 Deck width: 1.50 (minimum)

Note: Exceptions to the abovementioned

standards in Section 6.5.1.1 Item I.v.5.3
may be considered in cases where the

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 actual terrain/project site cannot
accommodate the abovementioned design
due to justifiable cause (i.e. due to
environmentally critical sections, excessive
earthworks, extensive damage to private
properties, etc.). In such cases, the
Municipality shall provide justification
stating the reason and details of
adjustment made in the design and
inclusion of engineering mitigation
measures (i.e. additional safety signs,
warning signs, etc.) included in the DED,
signed by the Municipal Engineer and
approved by the LCE. The document shall
be attached to the approved DED.

6. For Small Water Impounding Projects

- Project proposal and DED and POW has been

reviewed by the Municipal Agricultural Officer and
MPDC; and

- Proof of application at Bureau of Soils and Water

Management for Small Scale Impounding Projects
(BSWM SSIP) standards.

7. For Municipal Drug Rehabilitation Facility

The design of the center conforms to the following:

- design standards set by the DOH for Non-

Residential Treatment and Rehabilitation Center as
stipulated in the “Manual of Operations for Drug
Abuse Treatment and Rehabilitation Centers”;

- can withstand wind speed of three hundred (300)

kilometers per hour and moderate seismic activity
of at least 8.0 magnitude on the Richter scale;

- utilized natural ventilation and rainwater through

the inclusion of a rainwater catchment/harvesting
system; and

- located in the safe zone based on the latest

vulnerability, risk assessment and geo-hazard maps
of the DENR.

8. For Evacuation Centers

14 | P a g e
 The design and site location are compliant with the
requirements of “Evacuation Centers”, Volume I-A,
Special Provisions No. 7 of the FY 2018 GAA under the
DILG:

“In the design and construction of evacuation center,

the DILG shall ensure that the centers can withstand
wind speed of three hundred (300) kilometers per hour
and moderate seismic activity of at least 8.0
magnitude on the Richter scale; utilized natural
ventilation and rainwater through the inclusion of a
rainwater catchment/harvesting system; and include
facilities for the special needs of women, children, the
elderly, persons with disabilities (PWDs) and such
other physical provisions guaranteeing a humane
condition for evacuees. In the selection of sites, the
DILG shall consider site stability and susceptibility to
landslide or flooding based on the latest vulnerability,
risk assessment and geo-hazard maps of the DENR. No
center shall be located on a no-build zone. The
evacuation centers shall be turned over to the LGU
concerned which shall be responsible for maintenance
and operation of the centers.”

II. For Non-infrastructure projects:

1. For Disaster Risk Reduction-related Equipment

- The motor vehicle/DRR-related equipment will be

used for Disaster response and rescue/relief
operations.

- Specifications are based on relevant characteristics,

functionality and/or performance requirements
without reference to brand names except for items
or parts that are compatible with the existing fleet
or equipment of the same make and brand, and to
maintain the performance, functionality and useful
life of the equipment.

1.1 For Rescue Vehicles

- The proposed motor vehicle is in accordance

with the guidelines and policies issued by the
DBM and DILG for the purpose.

- The Municipality had already sent letter request

to DBM-RO thru DILG-RO through DILG-PO and
concerned MLGOO, requesting authority to
purchase (ATP) motor vehicles using AM Fund.

15 | P a g e
 1.2 For Rescue Equipment

- The proposed equipment are not expendable

items.

vi. Municipal funds shall be made available for the

maintenance, repairs and insurance, where applicable,
once the project is completed.

vii. Project implementation schedule, including procurement

timelines, prepared by the Municipal Engineer and
approved by the LCE, using the template under Annex C
hereof (Pro-forma Implementation Schedule).

The approved Annex C shall be submitted together with

Annex B-1 to Annex B-8, and copies of approved Annex C
be submitted for every revision thereof.

viii. The abovementioned documents shall be made available

to the DILG during field monitoring visits and/or as may
be requested. Any failure on the part of the LGU to
present the above documents shall be a ground for
possible disqualification or ineligibility in accessing the NG
assistance in the future.

6.5.1.2 Implementation of project prior to the submission of

documentary requirements mentioned above shall be
considered as non-compliance and may be considered as
ground for sanction as stipulated in Section 8.0 of this
Guidelines.

6.5.2 Procurement by the Municipality

6.5.2.1 Pursuant to Section 18 of the General Provisions of the F.Y.

2018 GAA, all agencies of the government shall strictly
adhere to the provisions of R.A. No. 9184, its IRR, and GPPB
guidelines in the procurement of goods, infrastructure
projects and consulting services.

a. All project procurement shall be through competitive

bidding, in strict compliance with the provisions of R.A.
No. 9184 (Government Procurement Reform Act) and its
2016 Revised IRR and GPPB Guidelines. The Municipality
shall use the latest standard bidding documents, 5 th
Edition, for procurement of works issued by the GPPB
which can be accessed at www.gppb.gov.ph

b. The Municipality shall be allowed to implement projects

“By Administration” only after two (2) failed biddings and
failed negotiated bidding and/or upon compliance with
16 | P a g e
 the requirements stipulated in the R.A. No. 9184,
Appendix 1, Section 3.0, Conditions and Requirements
for the use of “By Administration”, and 2016 Revised IRR
of R.A. No. 9184, Section 62, Warranty as provided
under Section 3.6 of Appendix 1 for projects to be
implemented by Administration.

c. To promote transparency and achieve efficiency in the

procurement process, the Philippine Government
Electronic Procurement System (PhilGEPS) shall be the
primary source and a repository of information on
government procurement.

d. All projects must be included in the Annual Procurement

Plan of the Municipality.

e. The concerned MLGOO, CSOs and other entities shall be

invited to observe particularly during pre-bid conference
and/or bid opening.

f. In the event of a failed bidding, the BAC shall conduct a

mandatory review and evaluation of the terms,
conditions, and specifications in the Bidding Documents,
including its cost estimates.

g. The Municipality shall start the re-bidding process within

five (5) working days after the Head of the Procuring
Entity (HOPE) has approved the BAC Resolution declaring
a failure of bidding. Within the same period, the
Municipality shall submit to DILG-RO through DILG-PO
and concerned MLGOO a revised procurement schedule
indicating the revised target dates for the bidding.

h. In the event that the Municipality will have to resort to

negotiated procurement after two (2) failed biddings, the
negotiation shall commence within five (5) days after the
HOPE has approved the resolution declaring a failure of
bidding and shall be completed within thirty (30) days.
Within the same period, the Municipality shall submit to
the DILG-PO through DILG-PO and concerned MLGOO a
revised procurement schedule indicating the revised
target dates.

i. The Municipality shall provide copy of Notice to Proceed

(NTP) to DILG-PO through the concerned MLGOO.

j. The Municipality shall submit to the Local Auditor

assigned to the Municipality a copy of the contract and
other required supporting documents within five (5) days
from the execution of the contract, in accordance with
Section 3.1 of COA Circular No. 2009-001 dated 12
February 2009.

17 | P a g e
 k. Pursuant to paragraph 4 (ii) of Section 2 of the Special
Provisions under the Local Government Support Fund of
the F.Y. 2018 GAA, a duly accredited CSO representative
who is a signatory to the Municipality’s list of priority
projects may actively participate to sit as observer in the
Bids and Awards Committee (BAC), which will undertake
the procurement activities for the implementation of AM
projects. The CSO duly accredited by the Municipality is
in addition to the identified observer under Section 13 of
R.A. No. 9184 and its 2016 Revised IRR.

6.5.2.1 The Municipality shall ensure the following:

a. That there is a valid Contractor’s Letter of Credit or

guarantee instrument equivalent to the un-recoup
amount of the advance payment;

b. The Contractor’s All Risk Insurance is valid throughout

the approved project duration, including time extension;

c. Performance security by Contractors is valid/updated

within the approved project duration including approved
time extension;

6.5.2.3 The Municipality shall ensure that project construction shall

commence within seven (7) days after the issuance of the
Notice to Proceed (NTP).

6.5.3 Project Execution

6.5.3.1 The Municipality shall have the primary responsibility in

ensuring the quality of works and the implementation of the
project shall be in accordance with the approved design,
plans, and specifications consistent with the relevant
provisions of applicable laws, circulars, and issuances.

6.5.3.2 The Municipality shall be responsible in providing supervision

in the project implementation through the Office of the
Municipal Engineer. The Municipal Engineer shall assign a
dedicated Project Engineer to ensure that each project will
be completed on time and within the contract cost, based on
the approved plans and specifications, adhering to National
Standards in design and quality of workmanship. The
responsibilities of the Project Engineer include, but not
limited to:

a) Inspect regularly the progress of work;

b) Verify and check the quantities of items of work

accomplished by the Contractor as against the approved
plans, specifications, and programs of work;

18 | P a g e
 c) Verify and check the quality of workmanship of the
Contractor as against the approved plans, specifications,
and programs of work and National Standards;

d) Verify and check whether quality control is observed,

quality tests are conducted and construction logbook is
maintained at the project site;

e) Issue instructions to expedite works and for corrections

of defects/deficiencies on the work;

f) Verify and recommend for approval of statements of

work accomplished and certificate of project completed
by the Contractor;

g) Review and recommend for approval the progress and

final billings of the Contractor; and

h) Secure/compile records of project (i.e. photographs, as-

staked, as-built drawings of the completed projects, test
results, etc.) and make available during inspections or as
requested;

i) Verify whether the required securities, warranties, and

insurance are valid as stipulated in Section 6.5.3.17 of
this Guidelines.

6.5.3.3 Adherence to National Government Standards and Policies

The Municipality shall abide by the standards and policies set

by the National Government, which are applicable to all
phases of subproject preparation and implementation which
include but not limited to the following:

a. Buildings and other vertical structures per the C.Y. 2005

Revised Edition of the RIRR of the National Building Code
(PD 1096), and Volume 1, 7th Edition of the National
Structural Code of the Philippines published on C.Y. 2015
by the Association of Structural Engineers of the
Philippines

b. DPWH Standard Specifications for Highways, Bridges,

and Airports, Volume II Edition 2013 and DPWH D.O. No.
5 Series of 2017 Revised Standardized Pay Items of
Works for Civil Works Construction For Infrastructure
Projects

c. "No-build" zone in accordance with F.Y. 2018 GAA

d. Philippine National Standard for Drinking Water

pursuant to DOH Administrative Order (AO) 2007-
0012

19 | P a g e
 e. Rainwater Collection Facilities pursuant to R.A. 6716

f. Code on Sanitation of the Philippines pursuant to

Presidential Decree (PD) 856

g. Clean Water Act of 2014 pursuant to R.A. 927

6.5.3.4 Infrastructure subprojects shall provide architectural and

structural features, design, or facilities that will reasonably
enhance mobility, safety, and welfare of persons with
disability pursuant to Batas Pambansa (BP) 344 and R.A.
No. 7277.

6.5.3.5 Infrastructure subprojects shall integrate energy-saving

solutions in planning and implementation to mitigate the
effect of climate change pursuant to R.A. No. 9729.

6.5.3.6 Consistent with R.A. No. 6685 dated 12 December 1988, the
Municipality shall hire or ensure that the Contractor hires at
least fifty percent (50%) of the unskilled and at least thirty
percent (30%) of the skilled labor requirements from the
available bona fide residents in the municipality where the
subproject is located. The Municipality shall ensure that the
following are strictly observed: (1) adoption of the standard
labor salary rate, (2) adoption of rotation process, as
possible, to accommodate as many community members in
the labor force, (3) transparency in the criteria for selection,
and (4) prioritization of those from the community with no
current employment and are abled.

6.5.3.7 The Municipality shall submit or cause the Contractor to

submit a monthly report on the labor force employed within
the subproject-based.

6.5.3.8 The Municipality shall ensure that quality control and

assurance are observed, quality tests (Annex H) are
conducted and construction logbook is maintained at the
project site, and shall be made available to DILG during
visits and/or as may be requested. In case of time extension
request, construction logbook, and other pertinent
documents, shall be used to support the Contractor’s
request.

6.5.3.9 Any variation order shall strictly comply with Annex E

(Contract Implementation Guidelines for the Procurement of
Infrastructure Projects) of the 2016 Revised IRR of R.A. No.
9184, and the provisions of the Contract. Any variation
order and contract time extension shall be approved by the
LCE. If the revised cost, which includes the variation order,
exceeds the approved allocation for the project, the
Municipality shall provide the required additional funds. The
Municipality shall inform the concerned DILG-RO through
DILG-PO and concerned MLGOO of any approved variation
20 | P a g e
 order and contract time extension, and shall ensure that all
related documents are readily available during monitoring by
DILG personnel and/or as may be requested.

6.5.3.10 In case of delay in the implementation of the project, the

Municipality shall perform the following actions:

a. Negative slippage of 5%

i. By Contract - issue a Warning Letter with a

requirement for the Contractor to submit a Catch-up
Plan

ii. By Administration – submit Catch-up Plan to DILG-RO

through DILG-PO and concerned MLGOO

b. Negative slippage of 10%

i. By Contract - terminate the contract for default when

the project has incurred a negative slippage of ten
percent (10%) or more in the completion of the work
due to the contractor’s fault and after the contract
time has expired, pursuant to Annex I Section III 2(b)
of the 2016 Revised Implementing Rules and
Regulations of the R.A. 9184.

ii. By Administration – submit justification on the cause

of delay and catch-up plan to the concerned DILG-RO
through DILG-PO and concerned MLGOO, supported by
adequate resources such as materials, workforce and
equipment

c. Negative slippage of 15%

i. By Contract - termination process in accordance with

Annex E, in conjunction with Annex I, of the 2016
Revised IRR of R.A. No. 9184.

ii. By Administration – submit justification on why the

DILG-RO through DILG-PO and concerned MLGOO
should not impose sanction mentioned in Section 8.0.

6.5.3.11 In case the Contractor fails to complete the work within the
specified contract duration and any approved time
extension, the Municipality shall impose liquidated damages
in accordance with Annex E of the 2016 Revised IRR of R.A.
No. 9184.

6.5.3.12 The Municipality shall terminate the contract as deemed

necessary on the grounds stipulated in Annex I, Section
III.2 (c) of the 2016 Revised IRR of R.A. No. 9184.

21 | P a g e
 6.5.3.13 In accordance with Annex E of the 2016 Revised IRR of R.A.
9184, the Municipality shall conduct preliminary inspection
(punch-listing) upon reaching 95% physical
accomplishment. Immediately after the preliminary
inspection, the Municipality shall provide a punch-list to the
contractor in preparation for the final turnover of the
project. Said punch-list will contain, among others, the
remaining works, work deficiencies for necessary
corrections, and the specific duration/time to fully complete
the project considering the approved remaining contract
time. This, however, shall not preclude the procuring
entity's claim for liquidated damages.

6.5.3.14 The Municipality shall inform the DILG-RO/PO through the

concerned MLGOO that the project has been substantially
completed (95%).

6.5.3.15 The Project is deemed physically complete once the

Municipality issued Certificate of Completion and Acceptance
(Annex L-1 or Annex L-2).

6.5.3.16 Upon Issuance of Certificate of Completion and Acceptance,

the Municipality shall prepare, within 30 calendar days, the
Project Completion Report using the prescribed format
(Annex Q), and submit the same to the DILG-PO thru the
MLGOO.

6.5.3.17 The Municipality shall ensure that the warranty security by

Contractors is valid/updated throughout the warranty
period.

6.5.3.18 The Municipality shall issue Certificate of Final Acceptance

(Annex O) after the one-year warranty period (liability
period) and after all defects and failures, if any, have been
corrected.

6.5.4 Information and Publicity of Projects

6.5.4.1 As LGU counterpart, within a month after receipt of the

fund, the Municipality shall install the Community Billboard
within the premises of the municipal hall in accordance with
the specifications prescribed in Annex D (Community
Billboard) hereof. The Municipality shall ensure the regular
monthly updating of the project status in the latter.

6.5.4.2 The Municipality shall ensure the installation of the project

signboard/s at each project location in accordance with COA
Circular No. 2013-004 dated 30 January 2013 and ensure
the regular updating thereof.

6.5.4.3 The Municipality shall comply with the reportorial and

posting requirements stipulated in the following laws, to wit:
22 | P a g e
 a. Rule XI Section 37.4.2 of the 2016 Revised IRR of R.A.
No. 9184 and any relevant policies issued by the GPPB

b. Full Disclosure Policy of the DILG

c. Section 98 of the F.Y. 2018 GAA General Provisions

d. Section 91 of the F.Y. 2018 GAA General Provisions

e. Last paragraph of Section 2 of the F.Y. 2018 GAA Special

Provisions under the LGSF

f. For projects funded under the FY 2018 GAA and

thereafter, submit quarterly reports (use Annex W: LGU
Quarterly Report) to the DBM, and to the Speaker of the
House of Representatives, the President of the Senate,
the House Committee on Appropriations and the Senate
Committee on Finance, by posting said reports on LGU
website for a period of three (3) years. The Municipal
Mayor shall send written notice to the said offices when
said reports have been posted on the LGU website, which
shall be considered the date of submission. Once the
Unified Reporting System becomes available for use by
LGUs, the submission to DBM shall be through the said
System.

6.5.4.4 The LCEs and web administrators or their equivalent shall be

responsible for ensuring compliance with this Provisions. The
LCE shall assign a web administrator or its equivalent in
case there is none. The LGUs shall create and maintain their
respective websites for this purpose.

6.5.5 Project Monitoring

The Municipality, in coordination with the DILG and duly accredited

CSOs, shall be responsible in monitoring the implementation of the
AM projects.

The Municipality shall provide efficient and accurate physical and

financial information and data in relation to project implementation
during project monitoring.

6.5.5.1 During project monitoring/inspection, the Municipality shall

observe the following:

a. Construction materials are available on-site in

accordance with the approved plans and specifications

b. Appropriate equipment are on-site, in accordance with

the Equipment Schedule

23 | P a g e
 c. Actual implementation/construction is in accordance with
the approved Plans and Technical Specifications

d. Quality Control (QC) tests are conducted consistent with

the frequency specified in the Technical Specifications for
each item of work. The tests are conducted by accredited
testing centers/laboratory/DPWH-accredited Materials
Engineer.

e. Waste disposal is done in accordance with prescribed

standards

f. Health and Safety standards set by DOLE are

implemented

6.5.5.2 The Municipality shall invite the presence of DILG (PO / RO)
during major activities such as, but not limited to the
following:

a. Well drilling

b. Source Validation and/or Pumping test

c. Pipe laying

d. Leakage/hydro testing/commissioning

e. Water sampling for potability (before, during and after

construction)

f. Punch-listings and Inspections

6.5.5.3 The Municipality shall have a functional Project Monitoring

Team. The Municipality may utilize or reactivate the existing
Municipal Project Monitoring Committee (MPMC) or may
create a Monitoring Team under the Municipal Development
Council (MDC) in accordance with the existing guidelines
issued for the purpose.

6.5.5.4 A separate Guidelines on the details for Monitoring the F.Y.

2018 LGSF-AM shall be issued by the DILG.

6.5.6 Project Reporting

6.5.6.1 The Municipality shall submit status report twice a month to

the DILG-PO, through Municipal Local Government
Operations Officer (MLGOO), using the prescribed template
attached as Annex E-LGU Bi-monthly Report, seven (7)
calendar days before the prescribed dates of submission
stipulated in the schedule of report submission as Annex F
(Schedule of Report Submission) hereof. Copies of the
approved Statement of Work Accomplished – SWA (Annex V-
24 | P a g e
 1 or V-2) and Report of Disbursements (ROD) shall be
submitted.

6.5.6.2 The DILG-PO shall evaluate the reports submitted by the

Municipality to check the consistency between the reported
and the actual works accomplished. As necessary, the DILG-
PO/RO shall join inspections with the Municipality to resolve
inconsistencies.

6.5.6.3 The DILG-Provincial Office (DILG-PO) shall submit to the

DILG-RO copy of the report with the corresponding findings
and recommendations.

6.5.6.4 The DILG-RO concerned shall prepare Regional Consolidated

Reports, both financial and physical accomplishments, based
on the reports submitted by the Municipality and submit the
same to the DILG-CO.

6.5.6.5 The DILG-CO shall prepare the overall Project Consolidated

Report, both financial and physical accomplishments, based
on the reports submitted by the DILG-ROs and submit the
same either by printed form or by way of electronic
documents to the concerned agencies stipulated in the F.Y.
2018 GAA and the said reports are likewise be posted to the
DILG website.

6.5.6.6 The beneficiary Municipality shall submit Reportorial

Requirements as mentioned in Section 6.5.4.3 of this
Guidelines.

7.1 RESPONSIBILITIES AND ACCOUNTABILITIES

7.2 Municipalities

7.1.1 The LCE and the concerned local officials shall be responsible and
accountable for the proper disbursement and utilization of the funds
provided, for ensuring the timeliness and quality of works in the
implementation of the projects which shall be in accordance with the
approved design, plans, and specifications consistent with the relevant
provisions of applicable laws, circulars, and issuances.

Moreover, it shall be the responsibility of the Municipality to ensure

that no duplication and/or overlapping of funding will occur. As such,
the Municipality shall immediately inform the DILG-RO if it has
received funding from other sources for the same programs of
projects.

7.1.2 The Municipal Accountant shall recognize the completed project as

asset in the book of accounts of the Municipality pursuant to COA
Circular 2015-008 for road infrastructure projects and Government
Accounting Manual for other infrastructure projects.

25 | P a g e
 7.1.3 The specific responsibilities of the Municipality are stipulated in the
applicable provisions of this Guidelines.

7.3 DILG

7.3.1 Central Office (CO)

Three (3) sectoral PMOs, namely 1) Water Supply and Sanitation

PMO; 2) Local Access Roads PMO; and 3) Disaster Risk Reduction and
Other Infrastructure PMO, have been established in the DILG-CO
under the OPDS, which shall be responsible in overseeing the overall
project implementation, monitoring and evaluation, including the
provision of technical assistance and capacity development for
Municipalities, in close coordination with DILG-ROs, DBM and line
agencies, and other stakeholders. The PMOs shall specifically be
responsible for the following:

7.3.1.1 Oversight

a. Formulate/Update Implementation Guidelines and

Strategies for effective implementation, in coordination
with DBM and other stakeholders

b. Overall physical and financial planning in coordination

with the DILG-ROs

c. Based on the endorsed list of eligible Municipalities to

DBM, inform the concerned Municipalities through the
DILG-ROs of the funds to be released by the DBM

d. Monitor Program Accomplishments at the Regional level

e. Prepare and submit consolidated bi-monthly, quarterly,

annual and other reports to the DILG Management and
other oversight and partner agencies as provided in the
F.Y. 2018 GAA provisions

f. Conduct of regular consultations/dialogues with DBM,

other agencies and stakeholders on matters related to
project implementation

g. If the circumstances warrant, notify the Municipality, copy

furnished Municipal/Regional COA and DILG-RO, in any
noted deviation to the provisions of this Guidelines and
non-compliance with the recommended corrective actions
during implementation

7.3.1.2 Capacity Development

a. Develop and implement Capacity Development Programs

for DILG Field Offices and Municipalities

26 | P a g e
 b. Develop and maintain database of conducted Capacity
Development Interventions

c. Develop Evaluation Tool and conduct an evaluation to

measure the impact of conducted Capacity Development
Interventions

7.3.1.3 Technical Assistance

a. Provide advisory and technical assistance to DILG Field

Offices and Municipalities in the development,
implementation, operation, and management of projects,
as needed

b. Disseminate national standards for quality assurance and

control in the implementation of projects to DILG-ROs and
Municipalities

7.3.1.4 Monitoring and Evaluation

a. Develop and implement monitoring and evaluation

framework and system

b. Monitor submission of and analyze reports submitted by

DILG-ROs

c. Conduct Risk Assessment and analysis as basis for

management actions including provision of Technical
Assistance

d. If circumstances warrant, assist the DILG-ROs in the

conduct of detailed assessment for non-functional projects
based on the result of the Rapid Subproject Sustainability
Assessment (RSSA)

7.3.1.5 Communications and Advocacy

a. Provide support to DILG-ROs in the documentation of

Good Practices in the implementation of the Program

b. Provision and maintenance of information materials for

social media and DILG website at the National level

c. Spearhead the conduct of Knowledge Fora to showcase

Good Practices in the implementation of the Program at
the National level

7.3.2 Regional Office (RO)

27 | P a g e
The RO shall take the lead in the progress monitoring and evaluation
and is responsible in overseeing the implementation of the program at
the regional level to ensure efficiency and effectiveness.

This includes the provision of technical assistance, monitoring and

evaluation and capacity development for Municipalities.

7.3.2.1 Regional Director (RD) shall:

a. Oversee the AM Program implementation in the Region to

ensure that national standards and policies are considered
during project preparation and actual implementation by
the Municipalities.

b. Disseminate project policies issued by the DILG-CO,

including other issuances related to project
implementation, national standards for quality assurance.
If warranted, conduct orientation to ensure that the
Municipalities are well-informed on the application of such
issuances.

c. In coordination with the OPDS Director, report to the

DILG Undersecretary for Local Government on the status
of program implementation.

d. Issue Warning Letters (Annex U-1 to Annex U-3) and

Notice of Project Cancellation (Annex Z), if no action has
been done by the Municipality regarding submissions/non-
compliance/deviations vis-à-vis the Monitoring Parameters
(Annex R) by the LGU.

e. Submit consolidated reports to DILG-CO-OPDS on/before

the dates stipulated in the Schedule of Report Submission
(Annex F).

f. Review the regional risk assessment reports and track

possible interventions/actions at the RO level. Endorse
issues and concerns for possible interventions/actions of
DILG-CO level, if deemed necessary.

g. Mobilize the PDMU for provision of technical assistance to

the LGU, if necessary, or may request personnel support
from the DILG-CO-OPDS.

h. Submit Financial Accomplishments Reports of the

utilization of M&E fund every 10 th day of the following
month to DILG-FMS copy furnished OPDS.

i. Mobilize the Regional Information Officer to conduct

documentation of good practices in the implementation of
the Program within the region.

j. Supervise the POs’ in the discharge of their

28 | P a g e
 responsibilities and provide assistance, if needed.

k. On behalf of the DILG, enter into a Partnership Agreement

with RHubs and other accredited CSOs and POs for the
provision of Technical Assistance and capacity
development to the Municipalities and in the
implementation of CSO participation as provided in
Section 7.4 of this Guidelines.

7.3.2.2 Project Development and Management Unit (PDMU) or its

equivalent Unit

The PDMU or its equivalent unit shall be the monitoring and

evaluation arm at the regional level. It shall be responsible
for the following, specifically:

a. Consolidate and analyze all provincial risk assessment

reports and prepare regional risk assessment report.
Identify and recommend to the RD possible interventions/
actions to be taken at the RO level and those to be
endorsed at the DILG-CO level.

b. Upon receipt of DILG AM Bi-monthly Report (Annex X)

from the POs, supply other required project data gathered
from the Engineers assigned in the RO. Consolidate the
said reports, for submission to DILG-CO-OPDS on/before
the dates stipulated in the Schedule of Report Submission
(Annex F).

c. The PDMU may immediately field or mobilize the

Engineers assigned in the RO to provide technical
assistance to the LGU, if necessary, or may request
personnel support from the DILG-CO-OPDS.

d. Assist DILG-PO in checking the consistency of the

documents stipulated in the Annexes during monitoring
and accomplish the Validation Form (Annex T).

e. Maintain regional database and electronic copies of LGU

submissions transmitted by the POs and be made
available during inspection.

f. Prepare a quarterly regional monitoring plan based on

agreed deliverables. Submit a summarized
accomplishment report to DILG-CO-OPDS.

g. The PDMU shall field or mobilize the Engineers assigned in

the RO to monitor the projects based on the monitoring
plan. Use the Project Monitoring Templates (Annex S)
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 when conducting site visits and spot checks during project
implementation and monitor the following, but not limited
to:

i. Implementation timelines;

ii. Availability of construction materials on-site, in

accordance with the approved plans and
specifications;

iii. Availability of appropriate equipment on-site, in

accordance with the Equipment Schedule and
manpower;

iv. Works are in accordance with the approved Plans

and Specifications;

v. Quality test conducted and construction logbook is

being maintained;

vi. Proper waste disposal is done in accordance with

prescribed standard set by MENRO; and

vii. Health and Safety standards set by DOLE shall be

implemented.

h. Validate and monitor regularly the update of the

SubayBayan in accordance with the corresponding
Guidelines to be issued by DILG. Provide the
missing/required project data.

i. Assist the DILG-PO on the Conduct of RSSA one (1) year

after the completion of projects, or as necessary and
prepare detailed assessment for non-functional projects
based on the result.

j. Monitor the validity of warranty security per project.

k. Conduct regional physical and financial planning in

coordination with DILG-POs.

l. Assist the DILG-CO-OPDS in the conduct of

Communication and Advocacy Program

m. Facilitate the conduct of consultations/dialogues at the

regional level with DILG-POs, Municipalities and other
stakeholders to resolve issues on project
implementation

n. Assist the DILG-CO-OPDS-PMOs in the conduct of

capacity development programs.

o. May attend bid openings, if warranted.

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 p. Ensure the completeness of the project information/data
submitted to the DILG-CO-OPDS-PMOs.

q. If warranted, participate in the conduct of punch-listing

and final inspection to ensure that all issues and
concerns were addressed before the issuance of
corresponding certifications.

r. Monitor reversion of unutilized funds by the

Municipalities as provided for in Section 6.4.5 of this
Guidelines.

7.3.2.3 Provincial Director (PD)

The DILG-Provincial Director (DILG-PD) assists the RO in

monitoring overall program implementation at the provincial
level, to ensure efficient and effective implementation of the
projects. It shall be responsible for the following:

a. Issue Warning Letters (Annex U-1 to Annex U-3) and/or

Reminder Letters (Annex Y), if no action has been done
by the Municipality regarding submissions/non-
compliance/deviations vis-à-vis the Monitoring Parameters
(Annex R) by the LGU.

b. Track the Municipalities’ compliance with this Guidelines

and any recommended corrective actions during
implementation.

c. In coordination with the Cluster Heads, prepare and

submit to DILG-RO the Provincial risk assessment reports
and track possible interventions/actions at the PO level.
Endorse issues and concerns for possible
intervention/actions of DILG-RO level, if deemed
necessary.

d. Upon receipt of DILG AM Bi-monthly Report (Annex X)

from the MLGOOs, supply other required project data
gathered from the Engineers assigned in the PO.
Consolidate the said reports and submit the same to
DILG-RO before the dates stipulated in the Schedule of
Report Submission (Annex F).

e. The PD may immediately field or mobilize the Engineers

assigned in the PO to provide technical assistance to the
LGU, if necessary, or may request personnel support from
the DILG-RO-PDMU.

f. In coordination with the Cluster Heads, check the

consistency of the documents stipulated in the Annexes
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 during monitoring and accomplish the Validation Form
(Annex T).

g. Maintain the copies of LGU submissions transmitted by

the MLGOOs and be made available during inspection.
Scanned copies should be provided to DILG-RO-PDMU.

h. Track all submissions from LGUs including revisions and

reflect the data in the consolidated AM Bi-monthly Report
(Annex X) at the Provincial Level

i. Submit to DILG-RO a quarterly monitoring plan.

j. Mobilize the Engineers assigned in the PO to monitor the

projects based on the monitoring plan. Use the Project
Monitoring Templates (Annex S) when conducting site
visits and spot checks during project implementation and
monitor the following, but not limited to:

i. Implementation timelines;

ii. Availability of construction materials on-site, in

accordance with the approved plans and
specifications;

iii. Availability of appropriate equipment on-site, in

accordance with the Equipment Schedule and
manpower;

iv. Works are in accordance with the approved Plans and

Specifications;

v. Quality test conducted and construction logbook is

being maintained;

vi. Proper waste disposal is done in accordance with

prescribed standard set by MENRO; and

vii. Health and Safety standards set by DOLE shall be

implemented.

k. Monitoring the Municipalities’ compliance with this

Guidelines and any recommended corrective actions
during implementation.

l. Ensure that other required project data are uploaded to

SubayBAYAN prior to vetting of the DILG-RO.

m. Conduct the Rapid Subproject Sustainability Assessment

for completed projects within the prescribed timelines.

n. Monitor the validity of warranty security per project.

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 o. Conduct provincial physical and financial planning in
coordination with DILG-RO.

p. Provide advisory and technical assistance to

Municipalities.

q. Assist the DILG-RO and/or OPDS-PMOs in the conduct of

Communication and Advocacy Program.

r. Facilitate the conduct of consultations/dialogues at the

provincial level with DILG-RO, Municipalities and other
stakeholders to resolve issues on project implementation.

s. Assist the DILG-RO and/or OPDS-PMOs in the conduct of

capacity development programs.

t. May attend bid openings, if warranted.

7.3.2.4 Cluster Heads shall:

a. Assist the DILG-PO in monitoring the Municipalities’

compliance with these Guidelines and recommend
corrective actions during implementation.

b. Orient the MLGOOs on the Policy, Monitoring, and

Reporting Guidelines.

c. Consolidate all reports for submission to DILG-RO before

the dates stipulated in the Schedule of Report Submission
(Annex F).

d. Monitor compliance to the regular update of SubayBAYAN

by the MLGOOs.

e. Monitor the project data uploaded by the MLGOOs in the

SubayBAYAN.

f. Review the target monitoring plan prepared by the

MLGOOs.

g. Oversee the maintenance of documents and LGU

submissions transmitted by the MLGOOs.

h. Supervise the MLGOOs in the discharge of their

responsibilities and provide assistance, if needed.

i. If warranted, participate in the conduct of punch-listing

and final inspection to ensure that all issues and concerns
are addressed before the issuance of corresponding
certifications.

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

a. Monitor the LGUs compliance on the provisions in this

Guidelines.

b. Brief the Municipality on the documentary requirements

and project timelines upon receipt of the endorsed list of
Municipalities eligible for fund release. Subsequently,
monitor if the Municipality has received the AM fund as
mentioned in Section 6.4.1 of this Guidelines and its
transfer to the trust account including the LGU counterpart
mentioned in Section 6.2.1 of this Guidelines, if any.

c. Based on the Bi-monthly report submitted by the

Municipality (Annex E) with Annex V-1 or V-2 (Contractor
Bi-monthly SWA), prepare the DILG AM Bi-monthly Report
using Annex X and submit the same to DILG-PO seven (7)
calendar days before the prescribed dates of submission
stipulated in Annex F (Schedule of Report Submission).

d. Monitor LGU posting of ITB/Ad, NOA, and NTP for each

project in Philgeps and/or conspicuous places within the
Municipality within 7 calendar days after the submission of
Annexes B and C.
e. If warranted, MLGOO may attend bid openings, note CSO
participation in the procurement process, note
irregularities, if any, and submit report to DILG-PO thru
the Cluster Head.

f. Notify DILG-PO of “Failed Biddings” and advise LGU to

submit Revised Annex C (Pro-forma Implementation
Schedule).

g. Remind the Head of Procuring Entity (HOPE) of noted

irregularities in procurement, if any.

h. Monitor the installation and updating of Project Billboard.

i. Organize the conduct of project monitoring visit cum exit

conference with the Municipality. Secure a copy of the
Aide Memoire (Annex I) signed by the parties present,
copy furnished DILG-PO.

j. Review the completeness of the required documents

submitted by the Municipality before submission to the
DILG-PO.

k. Take geotagged photos of the project site (0%, 30%,

60%, 90%, 100%, Turn-over) and promptly upload the
geotagged photos and project data in the SubayBAYAN.
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 l. Monitor the actions initiated by the LGU towards the
contractor of each project, in case the contractor incurred
negative slippages of 5%, 10%, and 15%. Secure copies
of the communication letters, Notice of Terminations,
justifications, and pertinent documents addressing the
negative slippage.

m.Send Reminder Letters (Annex Y) to the Municipality, copy

furnished DILG-PO Cluster Head.

n. Check consistency of the details of completed project on

the LGU website based on the Project Completion Report
(Annex Q).

o. Check whether the LGU already booked the project as

asset upon final acceptance.

p. Receive the LGU Certification of provision of annual

maintenance fund specifically for the concerned project/s.

q. Assist the DILG-PO in the conduct of the capacity

development activities at the provincial/municipal level.

r. Provide timely reports/feedback to the DILG-PO thru the

Cluster Head on the progress of activities in all phases of
project implementation.

7.4 Procedure on the issuance of Notice of Municipality’s Non-

Compliance:

7.3.1 After the project monitoring/validation, the DILG shall ensure the
issuance of Aide Memoire (Annex I). Municipality’s non-compliance
with the recommended corrective actions during project
implementation is indicated in the aide memoire and any deviation of
the provision of this Guidelines. The following actions shall be
undertaken:

7.4.1.1 Upon recognition by the DILG of the non-compliance of the

Municipality, the MLGOO shall immediately call the attention
of the LCE by issuing a Reminder Letter (Annex Y) within five
(5) working days prior to the agreed compliance date and
inform the Cluster Head.

7.4.1.2 Within five (5) calendar days after the acknowledgement of

information about the LGU’s continued inaction until the
agreed compliance date from the MLGOO, Cluster Head shall
endorse to PD the MLGOO’s observed non-compliance. The
PD shall officially notify the LCE (First Warning Letter, Annex
U-1), copy furnished MLGOO of the LGU’s non-compliance
and advise them to initiate/address the said issues.

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 7.4.1.3 If no action has been initiated by the concerned Municipality
after fifteen (15) calendars days after the receipt of First
Warning Letter (Annex U-1), the MLGOO shall notify the PD
of the Municipality’s non-action, and subsequently the PD
shall notify the LGU by sending Second Warning Letter
(Annex U-2), requiring the concerned LGU to provide
justifications and actions within fifteen (15) calendar days to
address their non-compliance.

7.4.1.4 If after fifteen (15) calendar days, the Municipality failed to

submit their justification and had not acted on their non-
compliance and/or after DILG-PO evaluation/validation, the
concerned Municipality’s justification is not acceptable, DILG-
PO shall notify DILG-RO of the same. DILG-RO shall officially
notify the LGU by sending the Third Warning Letter (Annex
U-3) and Notice of Project Cancellation (Annex Z), copy
furnished DILG-PO, MLGOO, DILG-OUSLG, and Regional
COA.

7.4.1.5 If there is an appeal for the termination of project, the LGU

shall send justification and catch-up plan to the DILG-Office
of the Secretary. If the circumstances warrant, the concerned
DILG-CO-OPDS-PMO shall evaluate and validate the request
and prepare recommendations to the DILG-OUSLG. If the
appeal is approved, the concerned Municipality shall
immediately comply with the corrective action(s) as
recommended and that non-compliance may be a ground for
imposition of sanction(s) as stipulated in the last paragraph
of Section 8.0 of this Guidelines, copy furnished DILG-RO,
Local-COA, and COA-LGS.

7.5 CSO Participation in Project Monitoring

7.4.1 Pursuant to Section 2 of the F.Y. 2018 GAA Special Provisions, duly
accredited Civil Society Organizations and citizens may actively
participate in the implementation by way of:

7.4.1.1 Municipal Development Council Project Monitoring

The implementation of this Provision shall be covered by a

separate guidelines to be issued by the DILG.

7.4.1.2 Observer in the procurement process

7.4.1.3 Third party monitoring and evaluation

The implementation of this Provision shall be covered by a

separate guidelines to be issued by the DILG.

7.4.1.4 Citizen feedback mechanism

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 Any interested party may send their feedback, complaints,
comments and suggestions including geo-tagged photos to
the contact information indicated in the community and
project billboard and to the to the SubayBAYAN and any
other portal that will be developed for the purpose.

8.0 SANCTIONS/PENAL PROVISIONS

8.1 Projects not implemented in accordance with the provisions of this Guidelines
including all other applicable laws but not limited to the following:

8.1.1 R.A. No. 3019 “Anti-Graft and Corruption Practices Act”

8.1.2 R.A. No. 9485 “An act to improve efficiency in the delivery of
government service to the public by reducing bureaucratic red tape,
preventing graft and corruption, and providing penalties therefor”

8.1.3 R.A. No. 9184 “The Government Procurement Reform Act and its
Revised Implementing Rules and Regulations”

8.1.4 Section 43, Chapter 5 and Section 80, Chapter 7, Book VI of E.O. No.
292

8.1.5 Pertinent Provisions of R.A. No. 10964 – FY 2018 General

Appropriations Act

may result in the:

- filing by concerned parties of appropriate civil, criminal and/or

administrative cases against the local public officials and/or employees
concerned for acts or omissions in relation to the performance of their
duties

- non-inclusion and/or disqualification of the Municipality in the future

National Government assistance

9.0 ISSUES FOR RESOLUTION

Interpretation of the provisions of this Memorandum Circular, including issues and

concerns not covered herein, shall be submitted to the DILG for resolution.

10.0 REPEALING CLAUSE

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

11.0 ANNEXES

Annex A Municipality’s Confirmation on the Receipt of 2018 AM Fund

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Annex B–1 Notarized LGU Certification for Local Access Roads / Bridges /
Footbridges Projects

Annex B–2 Notarized LGU Certification for Potable Water System Projects

Annex B–3 Notarized LGU Certification for Evacuation Center Projects

Annex B–4 Notarized LGU Certification for Municipal Drug Rehabilitation

Facility Projects

Annex B–5 Notarized LGU Certification for Small Water Impounding Projects

Annex B–6 Notarized LGU Certification for Disaster Risk Reduction-Related

Equipment Projects

Annex B–7 Notarized LGU Certification for Rain Water Catchment Facility
Projects

Annex B–8 Notarized LGU Certification for Sanitary Toilet and Hygiene
Facility

Annex C Pro-forma Implementation Schedule

Annex D Community Billboard

Annex E Pro-forma LGU Bi-monthly Report

Annex F Schedule of Report Submission

Annex G FY 2018 GAA Provisions

Annex H Minimum Test Requirements for Infrastructure Projects

Annex I Pro-forma Aide Memoire

Annex J Completion Inspection Report

Annex K Final Completion Inspection Report

Annex L–1 Certificate of Completion and Acceptance (By Contract)

Annex L–2 Certificate of Completion and Acceptance (By Administration)

Annex M Acceptance Inspection Report

Annex N Final Acceptance Inspection Report

Annex O Certificate of Final Acceptance

Annex P Notice of Defects / Deficiencies

Annex Q Project Completion Report

Annex R Monitoring Parameters

Annex S Project Monitoring Templates

Annex T Validation Form

Annex U–1 Warning Letter No. 1

Annex U–2 Warning Letter No. 2

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 Annex U–3 Warning Letter No. 3

Annex V–1 Contractor Bi-monthly Statement of Work Accomplished

Annex V–2 LGU Bi-monthly Statement of Work Accomplished

Annex W LGU Quarterly Report

Annex X DILG AM Bi-monthly Monitoring Report

Annex Y Reminder Letter

Annex Z Notice of Project Cancellation

12.0 EFFECTIVITY

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

EDUARDO M. AÑO
Officer-In-Charge, DILG

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