EDITORIAL

Funding for priority projects of depressed towns now available

Interested fourth to sixth to municipalities in northern Luzon may now submit project proposals to the Dept. of Interior and Local Government to fund priority projects.

Municipalities may now avail of DILG loans to implement “millennium development goals projects” after the agency and Department of Finance signed last week a memorandum of agreement that would make available P500 million for re-lending.

The MOA was signed last week by DILG Secretary Ronaldo V. Puno and DOF Secretary Margarito B. Teves at the Pan Pacific Hotel in Manila. Puno said the amount shall come from the MDG-Fund, a lending facility which offers easy financing to eligible LGUs particularly 4th to 6th class municipalities to finance projects that will directly contribute to the attainment of the MDGs.

MDGs are policies envisioned to address poverty, ensure human development and build prosperity for the greatest number of Filipinos. The MDG has six priority areas of concern namely, eradication of poverty and hunger, primary education, promotion of gender equality, reduction of child mortality, improvement of women’s reproductive health and combat HIV/AIDs, malaria and other diseases.

The MDG fund is a joint undertaking of the Municipal Development Fund Office of the Department of Finance and the DILG to finance construction of school building, hospital, health station, training center; and procurement of equipment and service facilities such as heavy equipment, farm machinery, post-harvest facilities, among others.

Under the MOA, the DOF, through the Millennium Development Fund Office shall establish a technical working group; administer and maintain the financing requirement of the fund to ensure that this is available to address LGU demand for financial assistance, lead in the appraisal of proposals endorsed by the DILG as well as evaluate their viability; oversee and process the fund releases for projects; conduct periodic evaluation of on-going projects, among others.

The DILG on the other hand, shall coordinate with the MDFO the status of financing requirement of the MDG fund; lead in the conduct of advocacy and marketing of the fund to eligible LGU beneficiaries; provide technical assistance to LGUs to ensure that these are consistent with requirements.