PART 1. CONTEXT A. Poverty Situation The Philippines is on track in meeting its national economic growth targets. However, the challenge remains on achieving poverty reduction in wider scale, increased speed and better inclusiveness. The average national incidence of poverty between 2006 and 2012 changed only very slightly, according to -1. » =: statistics from the Philippine National Statistical Coordination Board (NSCB Report in April 2013), reporting that poverty incidence among the population dropped to only 27.9% in 2012 from the 28.8% national average in 2006. Poverty and access to as well as utilization of essential local services are inter- related, as studies show. Low access to local essential services can be attributed to (0 lack of local resources for public goods and support services provision, (ii) gaps in local governance, and (ji) constraints limiting the reach, speed, flexibility and effectiveness of sector national programs. In many areas, poverty problems worsen as groups of the poor drop further down from the poverty line, due to the negative impact of (i) climate change and (i) local conflict, B. Continuing Fight against Poverty Government policies and programs for achieving poverty reduction continue. The Philippine Development Plan for inclusive grovith (20111-2016) is stressing the need for increased investments in human and physical development. C. Integrating post-Disaster Recovery and Rehabilitation A large proportion of the Philippine population is vulnerable to a range of hazards. According to a World Bank Study in 2005, over 70% of the population are exposed to two or more hazards. The Philippines ranks third on the global disaster risk index, behind Vanuatu and Tonga (Alliance Development Works, World Risk Report 2012). Nearly 60% of the total land area is exposed to multiple hazards such as floods, earthquakes, landslides, and volcanic eruptions. The country experiences about 20 typhoons every year. Tropical cyclones and associated flooding account for about 75% of recorded deaths and 63% of damage. Disasters overstretch the capacity and resources of national and local governments to respond effectively. (On 08 November 2013, Typhoon Yolanda hit the central Philippines, leaving behind an unprecedented path of destruction. As of 01 December 2013, death toll stands at 5,632, with another 1,759 still missing, 26,136 injured, and about 0.89 million families of 4.11 million people displaced. It is estimated that additional 1.5 million persons. may have fallen into poverty immediately after typhoon Yolanda, or 24% rise in the number of poor in Central Philippines and 7.1% nationwide. (ADB PAM, December 2013) The KC-NCDDP program assistance in capacity strengthening in different communities and investments support for community projects shall integrate addressing local disaster risk reduction and management concerns. PART 2. PROGRAM BACKGROUND Page 1 of 46A. The Social Welfare and Development Reform Agenda of DSWD With the passage of the Local Government Code in 1991, the control of DSWD over the government social welfare and development program has been re-focused from direct service delivery to providing leadership in policy formulation, standards setting, program development, technical assistance, and resource augmentation. DSWD is guided in the re-focusing by a Social Welfare and Development Reform ‘Agenda, covering the following four priorities: (i) leading in social protection, (i) providing faster and better service delivery of social protection programs, (ii) financial reform to sustain the reform process, and (iv) improving systems for service delivery. B. The CDD Approach and KC-NCDDP In search of better approaches in implementation, DSWD started trying out Community-Driven Development (CDD) in 2002, building on its experience in community-based participatory development from a previous DSWD local program, the Comprehensive and Integrated Delivery of Social Services (CIDSS). DSWD launched the KALAHI-CIDSS project in 2002, introducing CDD for improved outcomes in service delivery, local governance and community empowerment. The KALAHI-CIDSS National CDD Program (KC-NCDDP) shall build on CDD elements from the original KALAHI-CIDSS project, as welll as incorporate enhancements to support a national scaling-up. ©, Linkages between KC-NCDDP and Other Initiatives ‘A major DSWD goal is for outcomes from the KC-NCDDP to help meet the Human Development and Poverty Reduction Cluster (HDPRC) target of halving the average national poverty incidence from 26.5% in 2009 to 16.6% by 2015, as articulated in the series of HDPRC Joint Memorandum Circulars of the Department of Budget and Management (DBM), Department of the interior and Local Government (DIL), Department of Social Welfare and Development (DSWD) and the National Anti- Poverty Commission (NAPC). Within its target areas, the KC-NCDDP will be well positioned to help drive faster implementation pace, inclusiveness of program reach, and greater complementarity among sector programs, because the KC-NCDDP can (i) support communities in local decision-making, prioritizing and implementing local and community development activities; (i) assist in promoting inclusiveness, transparency and accountability in planning, implementing and monitoring local and community development activities; and (ii) assist in local capacity development and supporting coordination work with sector national programs, local government units and civil society organizations. In the Autonomous Region for Muslim Mindanao (ARMM) or Bangsamoro Region, in Which local poverty incidence is among the highest in the country, the KC-NCDDP team of DSWD can extend technical support and advice on CDD program development and implementation by the ARMM or Bangsamoro Regional Goverment. Convergence of DSWD Major Programs. DSWD introduced “Tatsulo", the name of its Convergence strategy which aims to harmonize three of its social protection Page? of 46programs: Conditional Cash Transfer (CCT), Community-Driven Development (CDD), and Sustainable Livelihood Program (SLP). The name is short for “Tationg Sulo”, and its illustrated by three flames that make up a single torch, symbolizing the three core programs. “Tatsulo” is currently being expanded to include other social protection core programs in the convergence approach The Convergence strategy aims to generate greater impact on poverty reduction, through (i) optimizing resource use, (ii) reducing duplication of efforts and enhancing operational efficiency, and (ji) building up capacity, knowledge and local collaboration DSWD is promoting integration among the programs through (i) adopting a common criteria for targeting of areas based on local poverty incidence, (ii) creating local convergence teams and framework for common local operations, monitoring and evaluation, (ii) promoting increased information sharing among the programs, and (jv) incteased policy coordination and management. Linkage with the Grassroots Participatory Budgeting Process/GPBP (formerly Bottom Up Budgeting or BUB). KC-NCDDP municipalities will be covered as well by the GPBP, hence, CDD and GPBP will operate in common geographical areas. Complementarity of resources can be established between CDD and GPBP, through the CDD approach extending assistance for social preparation, planning of actions, and coordination at community level across different barangays in a municipality, and the GPBP complementing the CDD funding available for projects. Specttically, CDD and GPBP can complement in the following ways: (i) communities and LGUs will be assisted to prepare their local poverty reduction action plans (LPRAPs), using only one participatory process accommodating elements of both the DD and GPBP,; (ji) the LPRAP preparation process will be carried out as to intersect and eventually fully synchronize with the institutional local and national planning and budgeting; (ii) for greater efficiency and effectiveness, the KC-NCDDP will build agreement for GPP and national programs to direct their poverty reduction assistance towards priorities in the LPRAP; and (iv) the KC-NCDDP capacity building, transparency and accountability mechanisms can promote broad-based community residents’ and civil society participation Linkage with program for Typhoon Yolanda (Haiyan)-hit areas. The COD approach is well-positioned as a channel for delivering support for a) re-establishing and strengthening capacities in the communities affected by disaster, b) accelerating the re-establishment of small-scale public services, and c) facilitating coordination. With almost two-thirds of the KC-NCDDP target municipalities reported to be ‘Typhoon Yolanda-hit, CDD in KC-NCDDP shall operate in coordination and consistency with institutional arrangements and the core principles in the Reconstruction Assistance on Yolanda (RAY) plan of the government, promoting capacity development in local governments, community participation, transparency, accountability, monitoring, evaluation and audits, Pape 3 of 46PART 3. SUMMARY PROGRAM DESCRIPTION AND IMPLEMENTATION STRATEGY Activities to be supported in KC-NCCDP can help advance the goal of promoting wide-scale reduction of poverty and vulnerabilities in the target municipalities, by () facilitating increased inflows of assistance and opportunities to the local level, through delivering assistance and building convergence with sector programs and other partners; (i) assisting different communities to access the opportunities available; and (i) supporting coordination and strengthening among national, sub- rational and local institutions for greater alignment between community and institutional priorities. A. Program Development Objective and Results Indicators Specffically, the KC-NCDDP in partnership with LGUs shall implement CDD to draw in and enable broader-based citizens’ participation in different communities, in taking local actions for reduction of poverty. The participation of citizens will be promoted through (a) enabling citizens in communities to take part in choosing their priorities for development, and implementing these with the assistance of CDD facilitators: and (b) the government and partners extending technical services support and access to funding for projects and activities. The program development objective of KC-NCDDP is to have “Cormmunities in the target municipalities empowered to achieve improved access to basic services and to \clusive local planning, budgeting, implementation and disaster Tisk reduction and management’. The following indicators of the outcomes of interest in KC-NCDDP will be used as minimum measures for success in the program by 2019 (to be achieved at the KC- NCDP national scale): Coverage: 26.9 million individuals or 5.3 million households At least 10% inctease in access to and utilization of major CDD-funded investment projects (e g., toad, education, health and water services) in KC- NCDDP municipalities = 40% of Hhs in KC-NCDDP rrunicipalities report better access to services * 35% of Hhs in KC-NCDDP municipalities report increase in confidence to participate in community development activities * 45% of members from marginalized groups (including IPs and women) attend regular Barangay Assemblies The program outcomes are to be realized using the CEAC CDD process for KC- NCDDP as the platform. By operationalizing the CEAC, the following can be accomplished: a) generating in different communities of participatory situation analyses, identifying community priorities, and community making of action plans, proposals and detailed plans for implementation, which are to form part of the Local Development Council-approved municipal local poverty reduction action plan (LPRAP); b) access to information, interactions with LGU officials and program providers, and capacity building training and learning provided for the different communities; and c) activities in different communities are coordinated transparently. Annex 1 shows the KC-NCDDP Results Framework. B, Program Components of KC-NCDDP Pape 4 of 46The various CDD activities and assistance to be implemented shall be provided support from the following 3 program components of KC-NCDDP: Component 1: Barangay (community) sub-grants for planning and implementation. This Component will support 2 types of assistance to communities participating in the KALAHI-CIDSS NCDOP: (i) Planning Grant and (ii) Investment Grant. The first type is the Planning Grant. Planning Grant is composed of the following: a) funding support for a wide range of standard, general “planning” activities that are conducted in the different communities of the target KC-NCDDP municipalities, and b) funding support for the contracting of sub-project-specific technical assistance service providers. The latter is also known as the technical assistance fund or TAF. The different general “planning” activities, which are provided funding support through the Planning Grant, are composed of the following: a) social investigation; b) local social preparation and consultative community assembly meetings; c) orientation meetings an Is, local service providers, sector agency representatives and other program providers; d) participatory situation analysis trait n planning workshops; e) community project development training and workshops; f) inter-community coordination and decision- making meetings; g) community implementation meetings; h) participatory community assessments and monitoring; and i) other activities relevant to community planning. The scope and sequencing of the said activities in the different communities are initially standardized in the CEAC, to be adjusted and refiected in the work plans of KC-NCDDP community workers based on realities in the field, and to be finalized with the communities. The Technical Assistance Fund (TAF) on the other hand can fund the contracting of private professionals or technical service providers, to be procured through either the communities or the Regional Program Management Office (RPMO), to support technical planning and implementation of certain specific sub-projects. The said contracting of service providers shall engage specialized or augmentation, short-term technical experts for the following sub-project-specific technical tasks: preliminary technical design of selected community-proposed projects, drafting of technical plans and cost estimates, technical supervision during community project establishment or implementation, and other activities relevant to technical planning and implementation. Communities that will access the TAF shall be assisted in contract preparation, documentation and implementation by technical facilitators from the KC- NCDDP and local government units, who will support the communities in the performance of prior and post technical reviews, as well as review and approval of the technical terms of reference and contract deliverables. The second type is the INVESTMENT GRANT. This Grant is implemented in the form of block grants to target municipalities. The block grants, following local decision-making in the Municipal Forum, are sub-allotted into funding support for individual community sub-projects located in the different communities within a municipality. The communities may implement their sub-projects using community- managed force account or community-managed contracting, for a range of activities, involved in building or constructing small-scale community projects. These projects can include a) small access infrastructure, b) communal water supply and sanitation facilities, c) common service production and post-harvest facilities, and d) other basic services prioritized by the communities. Communities carry out project identification Pape S of 46and prioritizing, designing and proposal making, detailed planning, implementation, monitoring and turn-over with the advice and assistance of technical facilitators from the KC-NCDDP and local government units. The KC-NCDDP target municipalities with larger population, higher poverty incidence, low revenue generation capacity, and hit by Supertyphoon Yolanda are allocated larger blocks of grants and more cycles of KC-NCDDP funding. Tho specific criteria and parameters for calculating the municipal block grants are discussed in Part 5 of the Operations Manual. Component 2: Capability Building and Implementation Support (CBIS) Under this Component of KC-NCDDP, different communities in the target municipalities shall have access to the services of a limited number of community process facilitators, as well as technical facilitators who shall provide advice and technical assistance focused on basic financial management and civil works technology (other technical specialization needed in the communities may be supported using the KC-NCDDP technical assistance fund). DSWD shall deploy said facilitators to different KC-NCDDP municipalities. Facilitators. shall provide their advice during any of the following KC-NCDDP- assisted activities to be conducted in communities: community assembly meetings, coordination and interfacing meetings with local government staff and officials, orientation and training of community volunteers, local government staff and external service providers assisting the communities. The facilitators will also work closely with counterpart staff from the municipal local government units, as well as take part in local coordination activities of the sector and other programs present in the municipality. Component 3: Project Administration, Monitoring and Evaluation In response to the demands of a scaled-up national CDD operation in KC-NCDDP, and to continue building up learning and improvement in the planning, conduct, coordination and monitoring of local CDD activities, the KC-NCDDP shall implement various support activities at the PMO national and regional levels. These include a) engaging specialized technical and process specialists and support staff at the PMO levels to support community, LGU and program implementors in the field; b) purposive and continuing capacity building and training for facilitators, trainors, program staff and local governments; c) information capture and wide data sharing to support decision-making, learning and strategic communications at various levels and for reporting purposes, as elaborated below under monitoring and evaluation; d) closer and more strategic coordination and convergence internally within the DSWD and with sector government agencies, CSOs and other partners; e) continuing improvement of internal management systems for on time and quality delivery of logistics support for staff and program activities in the field; and f) other relevant activities supporting local capability building, planning, implementation, coordination, learning, and monitoring and evaluation Under Monitoring and Evaluation in KC-NCDDP, there will be 4 sets of activities to be supported, namely: a) Internal progress monitoring of program performance using key performance indicators (KPIs) in the KC-NCDDP Results Framework, This will also cover gender action plan and environmental and social safeguards monitoring; Page 6 of 46