Supporting LGUs towards LED.pptx

1. Supporting
LGUs
towards
Local
Economic
Developmen
t
Dir ANNA LIZA BONAGUA
Bureau of Local Government Development
Department of the Interior and Local Government
Outpacing Covid-19:
Boosting Local Economic
Development for Stronger
Local Governments
15 October 2020

2. 3 Decades of Decentralization
Greater recognitionofroleof LGUs innationaldevelopment
Significanteffortstoprovide LGUs with resources, tools,
participatorymechanisms andcapacities tofulfilltheir new
broadermandates
Locally-drivendevelopment strategiesare becoming more
relevant inaneconomic environment

3. COVID-19 crisis has triggered a temporary economic decline
across all economies globally, forcing governments toimplement
budget cuts and stimulus packages
• Significantchangesin thewaywedobusiness andlive ourlives
• Government must stillstimulatethe economy Pivot roleto enabledigitaleconomy
• Increasingneed forbusiness continuityplanning andcapacitybuilding (such as
digitalskills, digitalizingoperations,knowledgetransfer,andinformationsharing,
andmentoring)

4. DILG Support Interventions for LGUs
Improving competitiveness
Reducing Cost of Doing Business
Encouraging Private Sector Participation
Capacitating Investment Promotion
Local
Economic
Developm
ent in the
New
Normal

5. Improving
Competitivenes
s and Reducing
Cost of Doing
Business

6. EODB
EGSD
Ease of Doing Business
and Efficient
Government Service
Delivery (EODB EGSD)
Act of 2018
Actof2018
 encourage investors by
simplifying the process
and shortening the time of
issuance of business
permits and licenses,
clearances of business
entities
 improve the Philippines’
standing in the
Competitiveness and Ease
of Doing Business Survey

7. Reengineering ofsystem
andprocedures
Minimum Requisites
Requirements under RA
11032
Zero-contactPolicy
ReducedProcessing Time
AutomaticApprovalor
AutomaticExtensions
EstablishmentofBusiness
One StopShop

8. Streamlining
Business Permits
and
Licensing System

9. New BPLS Standards
(Per DTI-DILG-DICTJMC 2016-1:Revised BPLS Standards
BPLS Unified Form
3 Steps
2 days for new
1 day for renewal
2 Signatories
Unified the steps
1. Filing and verification
2. 1-time assessment and
payment (TO and BFP)
3. Claim the business permit.
Introduced use of electronic
and digital signatures
Unified BPLS forms (BPLO
and BFP) made available
on-line
OLD vs NEW BPLS STANDARDS
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
OLD vs NEW BPLS STANDARDS
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
OLD vs NEW BPLS STANDARDS
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES

10. Streamlining
Construction
Permit and
Certificate of
Occupancy

11. Building Permits andCertificateofOccupancyStandards
(DILG-DPWH-DICT-DTINo.01 series of 2018:Streamlining of Building Permits and Certificate of
Occupancy
Unified Form
3 Steps
5 days for new
2 Signatories
Introduced use of electronic
and digital signatures
Unified BPLS forms (BPLO
and BFP) made available
on-line
OLD vs NEW BPLS STANDARD
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Unified Form (Print and
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
OLD vs NEW BPLS STANDARD
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
OLD vs NEW BPLS STANDARD
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified Form
Unified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
1. File
2. Receipt of Order of
Payment,
3. Payment, and
4. Claim of Building
Permit/Certificate of
Occupancy

12. Complementary Reforms
for both JMCs
Setting-up of a Business One-Stop-Shop
(BOSS)
Conducting joint Inspections for licenses
and permits
Computerizingand automating business
permit application processes
OnlineTransaction
Online application &
Electronic means (e.g.
electronic mail) of providing
businesses with tax order of
payments
Online-payments
Electronic mail or or courier
services in transmitting
clearances and permits;

13. DILG MC2018-214: ReengineeringofLGUs Systems
and Proceduresin Compliance to EODB-EGSD Act of
2018
Reengineering of Systems and Procedures
• Review existing executive issuance and
local ordinances and recommend repeal
• Undergo regulatory impact assessment
to the proposed regulations
• Inventory of all LGU transactions
• Formulation of service standards for LGU
services per category of transactions and
in accordance with prescribed processing
timelines

14. Integrating
Barangay Clearance
in
City/Municipality
Permitting
Processes

15. DILG MC2019-177: Guidelines in the Integration of
the IssuanceofBarangayClearance in the Permitting
ProcessesofCities and Municipalities (RA11032
Section11(f))
• BarangayClearanceshall benapplied and issued at the cities or
municipalities
• BarangayClearanceFee shall be collected inthe above-mentioned
Offices based on the submitted BarangayOrdinance of fees and
charges
• BarangayFees collected shall be remittedon the 7th dayof the
following month
Integrating
Barangay
Clearance in
City/Municipali
ty
Permitting
Processes

16. Rationalization
of Fees and
Charges

17. Rationale for fees and charges
Regulation of business and
activities as well as delivery
of services to the people
through local government
entail cost to the
government
Equity requires that
person/s benefitting from
the service to share the
cost of providing such
services.
If the primary purpose of
imposition is generation
of revenue and that
regulation is merely
incidental
If primary purpose is
regulation and the
imposition is just to cover
the cost of regulation
VS
“TAX” ”FEE”
Rationalization of Fees and Charge

18. DILG-DOF JMC2019-01: Guidelines for the Review,
Setting and/or Adoption ofReasonable Regulatory Fees
and ChargesofLGUs
 Ensureuniform procedure in setting reasonablefees and
chargesasprovided forbytheprovisionsof RA7160,
knownas LGC1991
 Set abalancebetweenrecovering the costofservices
andthe easeof doing business in compliancewithEODB
Act of2018

19. JMC on Streamlined Guidelines for the
Issuance of Permits, Licenses, and
Certificates on the Construction of Passive
Telecommunications Towers Infrastructures
(PTTIS)
Included in the Reforms:
• Removal of Sangguniang Panlungsod/Bayan
Resolution and Barangay Council Resolution
• Certificate of use instead of certificate of
occupancy
13 permits
86 documentary
requirements
241 days
8 permits
35 documentary
requirements
16 days

20. Encouraging
Private Sector
Participation
Public-Private Partnership
for the People for LGUs

21. What the LGUs usually do when they need development…..

22. • access private sector ideas, business
model and innovation
• leverage private sector finance to bring
proven development solution to scale
when public resources are not sufficient
• accelerates delivery of basic services and
infrastructure spending
Why PPP……..

23. • Build-Operate and Transfer (BOT) Law as
amended
• 2013 NEDA Joint Venture Guidelines
• Civil and Corporation Code
• Adoption of Specific LGU P4 Code enacted thru
an ordinance
Partnership Frameworks……..

24. Source of Potential PPP Projects
• Local Development Plans
 Comprehensive Land Use Plan (CLUP)
 Comprehensive Development Plan (CDP)
 Provincial Development and Physical
Framework Plan (PDPFP)
• LGU Profile such as Community Based
Monitoring System

25. Growing numberof LGU interest in PPP
Amongthe143awardedprojects
• 31by NGAs
• 73by GOCCs
• 39by LGUs
NGAs
22%
GOCCs
51%
LGUs
27%
PPP Engagement
2019

26. Capacitating
LGUs in
Investment
Promotion

27. Capacitating LGUs in Investment Promotion
• Organization and Capacity Building of Local Economic and
Investment Promotion Officers (LEIPO)
• Lead investment promotion activities
• Coordinate economic development programs
• Support/facilitate Negosyo Center operations
• Assistance in the formulation and updating of:
• Local Investment and Incentives Code (LIIC) in coordination with
DTI-BOI
• Local Revenue Code (LRC) in coordination with DOF-BLGF
• Assistance to Public Employment Service Office (PESO)in
coordination with DOLE to improve employment facilitation
services and skills training services

28. Out of 1,516 Cities/Municipalities (except ARMM), 1,484(97.89%)
responded in our Online Monitoring Survey.
Responded,
97.89% Remaining,
2.11%, 2%
On-line Survey on LGU Compliance
Responded Remaining
Monitoring of LGU Complianc
(based on On-line Progress Reporting)

29. Compliance on Processing
Time
84%
16%
Compliance Rate on Processing
Time
For New Application

30. LGU On-line compliance reporting/monitoring
system
thru a google drive
Compliance Audit
on-site review and assessment of process vs
standards
Client Satisfaction Survey
Annual Client Satisfaction Survey of DTI & PCCI
Client on-line feedback after every transaction thru
an online App “Rate my LGU Service”
Compliance Monitoring
Mechanisms
(3 levels)

31. Rate my LGU Service
• a citizen feedback
mechanism to provide
feedback on compliance
and performance of LGUs
• result of the survey shall
also become basis for the
grant of awards,
recognition and/or
incentives

32. LGUs With BOSS
0%
20%
40%
60%
80%
100%
120%
% of LGU Compliance on BOSS
As of 2nd Sem 2020, by Region
LGUs with BOSS
93%
LGUs
without
BOSS
7%
Compliance on BOSS
as of 2nd Sem 2020

33. Number of LGUs with Computerized
BPLS
LGUs with
Computerized BPLS
31%
LGUs with Computerized BPLS
69%
Computerization/Automation of LGU BPLS
as of 2nd Quarter 2020
- 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
NCR
CAR
REGION I
REGION II
REGION III
REGION IV-A
MIMAROPA
REGION V
REGION VI
REGION VII
REGION VIII
REGION IX
REGION X
Computerization/Automation of LGU BPLS
as of 2nd Sem 2020, by Region

34. Number of permits issued
REGION
Number of Business
Registered
Total Amount of Collection
from taxes, fees and charges
NCR 329,799 ₱ 26,088,388,009.82
CAR 59,597 ₱ 1,089,706,621.85
REGION I 107,530 ₱ 1,676,834,674.19
REGION II 66,044 ₱ 1,832,306,627.82
REGION III 137,863 ₱ 3,198,788,030.18
REGION IV-A 214,095 ₱ 7,773,513,090.96
MIMAROPA 48,531 ₱ 770,771,081.46
REGION V 34,883 ₱ 442,403,666.70
REGION VI 62,838 ₱ 925,292,900.81
REGION VII 104,237 ₱ 3,049,023,727.81
REGION VIII 54,812 ₱ 340,902,692.31
REGION IX 54,898 ₱ 324,063,924.01
REGION X 46,521 ₱ 858,695,352.36
REGION XI 76,507 ₱ 627,541,870.90
REGION XII 95,023 ₱ 2,203,981,539.82
REGION XIII 28,950 ₱ 613,361,867.63
TOTAL 1,522,128 PHP 59,543,833,846.63

35. Number of Business
Establishments Registered, FY
2020
329,799
59,597
107,530
66,044
137,863
214,095
48,531
34,883
62,838
104,237
54,812
54,898
46,521
76,507
95,023
28,950
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
NCR
CAR
REGION I
REGION II
REGION III
REGION IV-A
MIMAROPA
REGION V
REGION VI
REGION VII
REGION VIII
REGION IX
REGION X
REGION XI
REGION XII
REGION XIII

36. Amount of Collection from Business
Taxes, Fees and Charges, FY 2020
26088388009.82
1089706621.85
1676834674.19
1832306627.82
3198788030.18
7,773,513,090.96
770,771,081.46
442,403,666.70
925,292,900.81
3,049,023,727.81
340,902,692.31
324,063,924.01
858,695,352.36
627,541,870.90
2,203,981,539.82
613,361,867.63
0.00 5000000000.00 10000000000.00 15000000000.00 20000000000.00 25000000000.00 30000000000.00
NCR
CAR
REGION I
REGION II
REGION III
REGION IV-A
MIMAROPA
REGION V
REGION VI
REGION VII
REGION VIII
REGION IX
REGION X
REGION XI
REGION XII
REGION XIII

37. WB Survey on Ease of Doing Busines
The rankings are used as an indicator of the simplicity of
business laws and regulations, and the level of protection
for businessmen and their property rights

38. WB Doing Business Report (2011-2020)
PHILIPPINES vs ASEAN
Source: Doing Business Report
Economy
2020
(190)
2019
(190)
2018
(190)
2017
(190)
2016
(189)
2015
(189)
2014
(189)
2013
(185)
2012
(183)
2011
(183)
Singapore 2 2 2 2 1 1 1 1 1 1
Malaysia 12 15 24 23 18 18 6 12 18 21
Thailand 21 27 26 46 49 26 18 18 17 19
Brunei Darussalam 66 55 56 72 84 101 59 79 83 112
Vietnam 70 69 68 82 90 78 99 99 98 78
Indonesia 73 73 72 91 109 114 120 128 129 121
Philippines 95 124 113 99 103 95 108 138 136 148
Cambodia 144 138 135 131 127 135 137 133 138 147
Lao PDR 154 154 141 139 134 148 159 163 166 171
Myanmar 165 171 171 170 167 177 182 NDA NDA NDA

39. EODB
DILG will continue to guide and aid LGUs towards economic
recoveryin the NEW NORMAL

40. www.dilg.gov.ph
localfiscal.dilg@gmail.com
+632 929-9235
+632 927-7853