KALAHI-CIDSS ADDITIONAL FINANCING BRIEFER
Project Title : KALAHI CIDSS Additional Financing Project (KCAF)
Proponent : Department of Social Welfare and Development (DSWD)
Target Coverage : 182 municipalities nationwide (97 MT and 85 new
municipalities) and 4 urban poor communities
Cost Estimate : Total Project Cost PhP 4,962,891,964 (US$ 104,788,581)
World Bank Loan PhP 2,800,168,800 (US$ 59,123,937)
Target Implementation: 2010 to May 31, 2013
I. Project Objectives
§ Empower local communities through improved participation in local governance
and involvement in the design and implementation of poverty reduction projects.
§ Specifically, the project aims to:
Ø Increase the confidence of households to participate in community activities
and organizations
Ø Improve the effectiveness of community organization and sub-project
beneficiary groups
Ø Improve community links to local service providers/resource groups
(vertical social capital)
Ø Improve women and IP’s participation in community affairs
Ø Sustain local application of KC PTAS processes within the regular LGU
II. Project Components
§ Project Component 1: Capacity Building and Implementation Support. Under this
component, communities and other institutional stakeholders are mobilized and
capacitated to initiate, plan, implement and manage sub-projects that address local
poverty.
§ Project Component 2: Barangay Grants. KC will provide two types of grants to
participating barangays
Ø Planning grants – supports community efforts to identify key local poverty
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challenges, propose appropriate solutions, implement development projects,
and identify mechanisms for sustaining development investments
Ø Investment grants – provides funding assistance for community subproject
proposals selected through a priority-setting process at the Municipal Inter-
barangay Forum. The project employs an open menu of sub-projects
bounded by a short negative list that disallows projects with adverse
environmental and social impacts. Based on KC experience, common sup-
projects identified are water systems, school buildings, roads, health centers
and daycare centers.
§ Project Component 3: Urban Kalahi Pilot: KCAF will be piloting the CDD approach
in four poor urban barangays/communities, one each in Metro Manila, Luzon,
Visayas and Mindanao.
§ Project Component 4: Project Management: This component constitutes
incremental project management by DSWD and project monitoring and evaluation
III. Project Implementation
§ Coverage: KCAF will cover 182 municipalities with poverty incidence of at least
33% (based on NSCB Small Area Estimates) in Regions CAR, IV-A, V, VI, VIII, IX, X, XI,
XII, and CARAGA
Region MT New Total
CAR 3 3
Region IV-A 10 9 19
Region V 10 7 17
Region VI 11 7 18
Region VIII 11 9 20
Region IX 13 16 29
Region X 10 12 22
Region XI 5 6 11
Region XII 7 6 13
Caraga 17 13 30
Total 97 85 182
§ Phasing
Ø The Project will group the municipalities into three batches. The table below
shows the phasing of the project.
Ø Under KCAF, KC1 municipalities will undergo one LGU-led project cycle as
part of the institutionalization of the CDD approach. Meanwhile, new
municipalities1 will undergo one project cycles consisting of a 6-8 months
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Except for the 14 new municipalities launched last year that will undergo two (2) project cycles.
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social and project preparation and 4-6 months of sub-project implementation
by the communities. 14 of these will have second cycle in KC-MCC. DSWD
plans to get KC2 approved in time for the remaining municipalities to
proceed to Cycle 2 and 3.
2010 2011 2012 2013
New Municipalities 14 15* 56
MT Municipalities 24 73
TOTAL 38 88 56
*Part of the 16 additional municipalities launched under KC1 that will be having their 2nd
cycle under KCAF.
§ Implementation Structure
Ø A National Steering Committee composed of the DSWD and the National
Anti-Poverty Commission as co-Chairpersons will be set up. The DILG, DBM,
DOF and the NEDA shall be members of the Steering Committee, along with
three representatives from the NGO community and the Chairperson of the
League of Barangays.
Ø The DSWD, as lead agency, shall be the implementing arm of the project.
DSWD shall utilize trained available staff from existing DSWD units and
offices, local government unit staff, and selected specialists that will be hired
by the project.
IV. Project Cost
PROJECT COMPONENTS COST (PhP)
LP GOP/LCC TOTAL
COMPONENT 1: CBIS 88,280,0 636,438, 724,718,
00 646 646
COMPONENT 2: Barangay Grant 2,457,210, 1,156,461, 3,613,671,
s 000 429 429
COMPONENT 3: Urban KALAHI P 43,000, 59,379, 102,379,
ilot 000 667 667
COMPONENT 4: Project Manage 155,278, 310,443, 465,722,
ment 800 422 222
TOTAL (PhP) 2,800,168, 2,162,723, 4,962,891,
800 164 964
TOTAL (US$) 59,123,937 45,664,643 104,788,581
V. Milestones
§ Project proposal was submitted to NEDA on September 15, 2009
§ NEDA-ICC Technical Board approved the KC-AF Project on December 10, 2009
subject to the following conditions:
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Ø Assurance of budget cover for KC-AF from the Department of Budget and
Management
Ø Conduct of project assessment by the end of Year 1 of project implementation
§ NEDA-ICC Cabcom approved the project on April 13, 2010
§ Approval of KCAF by NEDA Board on April 20, 2010
§ GOP and World Bank Negotiation was conducted on August 3, 2010
§ Loan Agreement was signed on December 3, 2010 and the legal opinion from the DoJ
was received by the Bank on January 26, 2011.
§ Implementation Support Mission conducted on January 17 -31
§ Loan Agreement declared effective on February 24, 2011.
§ Both conditions for effectiveness: 1) Revised Operations Manual and 2) List of
eligible provinces and municipalities have already been submitted and accepted by
the Bank.
