The Department of Finance (DOF) is urging local government units (LGUs) to tap the People’s Survival (PSF) and Municipal Development Funds (MDF) created by the government to bankroll the implementation of climate change-adaptation projects in vulnerable communities and improve the delivery of basic services through the construction of water systems, roads and other infrastructure projects.
Finance Secretary Carlos G. Dominguez III emphasized that LGUs should take advantage of the two funding programs administered by the DOF to build climate-resilient communities and implement development projects in their respective cities and municipalities through grants and low-cost loans.
In his recent visit to the town of Guiuan in Eastern Samar, the finance chief gave local executives an overview of the two funding sources, and added that he would send personnel from the Municipal Development Fund Office (MDFO) and the Bureau of the Treasury (BTr) to provide detailed presentations and accept applications from interested LGUs.
“The first one is a grant fund that we provide for climate-change adaptation. So these are protection of your shores in case there are higher tides due to the adverse effects of climate change, maybe solar electricity that we can help fund, water projects and projects sort of like building shelters for emergencies,” Dominguez said.
Guiuan was the first point of impact of Supertyphoon Yolanda, which devastated large parts of Eastern Visayas in 2013.
Dominguez, along with United States Ambassador to the Philippines Sung Kim and Rep. Ben P. Evardone of the Lone District of Eastern Samar, were in Guiuan on a site visit to the Secondary National Roads Development Project that was funded through a grant by the US through the Millennium Challenge Corp.
“We also have the MDFO, which provides long-term and low-cost loans for municipalities to build public markets, build water systems, build roads, as well as municipal halls. We are very open to that and it’s our office that manages these funds,” he added.
The MDFO administers the MDF, a special revolving fund that was established for relending to LGUs to enable them to tap funds from local and international sources for the implementation of their respective development projects.
Meanwhile, with a programmed annual fund of at least P1 billion in the BTr, the PSF is intended to fund climate change-adaptation projects of LGUs and accredited community organizations. The PSF Board, chaired by Dominguez, manages and administers the PSF.
The PSF is on top of the annual appropriations allocated to LGUs for climate change-related programs and projects.
Among the activities eligible for funding by the PSF are projects on water-resources management, land management, agriculture and fisheries, and health, and other activities that serve as guarantee for the risk insurance needs for farmers, agricultural workers and other stakeholders.