Program for Local Economic Development through Enlightened Governance and Grassroots Empowerment (PLEDGE)

1. Program for Local Economic Development
through Enlightened Governance
and Grassroots Empowerment
(PLEDGE)
CONCEPTUAL AND OPERATING
FRAMEWORKS

2. PROJECT DESIGN, OBJECTIVES
AND TARGETS

3. Nature of Project : Institutional Development and Capacity
Building of BDA, LGUs and Communities
Major Activities : Development of Systems, Tools and
Methodologies for Enlightened Governance
and Grassroots Empowerment
Methodology : Participatory Action Research and Development
involving the BDA, LGU, local partners and
citizens through their People’s Organizations
Intervention Programme : Local Economic Development (LED) starting from
local supply chain, community-based enterprises,
market support structures, promotion of
agro-aqua industrial development for MSME-BLI
Tools and Strategies : Community and group organizing, skills training,
enterprise and social entrepreneurship
development, stakeholders mobilization
PROJECT DESIGN

4. DEVELOPMENT OBJECTIVE:
To contribute to confidence and peace building efforts
through LOCAL ECONOMIC DEVELOPMENT and sustainable
livelihood creation in conflict affected areas in Mindanao
IMMEDIATE OBJECTIVE 1:
Creation of sustainable livelihood
opportunities centering on the
development of COMMUNITY-
BASED ENTERPRISES with higher
level market linkages and
enhanced support networks and
services
IMMEDIATE OBJECTIVE 2:
BUILDING CAPACITY OF THE LOCAL
DEVELOPMENT AGENCY, NAMELY THE BDA,
to implement, monitor, evaluate, and
upscale livelihoods interventions by
developing networks and partnerships
with national, regional, local public and
private institutions.
IMMEDIATE OBJECTIVE 3
Enhanced community OWNERSHIP of
interventions through PARTICIPATORY AND
CONSULTATIVE APPROACH
OBJECTIVES in the
PROJECT DOCUMENT

5. RURAL INCOMES +
VIBRANTCOMMUNITIES
= LASTINGPEACE
For Immediate Objective 1:
DEVELOP COMMUNITY-
BASED ENTERPISES ALONG
LOCAL SUPPLY CHAINS
For Immediate Objective 2:
BUILD CAPACITY OF BDA ON
NEW & REFORMIST TOOLS AND
DELIVERY SYSTEM
For Immediate Objective 3:
Ownership of system and methodology - BDA
Ownership of enterprise projects -
Communities
OPERATIONAL
& STRATEGIC
INTERPRETATIONS

6. Immediate Objective 1 – Capacity building of the BDA
Institutions developed/ created - 1 (Enterprise/ Economic Dev’t. Unit)
Staff trained, capacitated - 35 (BDA/PLEDGE Project Staff)
Other partners trained - 30 (BDA volunteers/ Dev’t Catalysts)
Tools and guidelines - 20 (implementing tools and guidelines)
Immediate Objective 2 – Creation of sustainable community-based enterprises
Group Enterprise Projects created - 36 (3/site forming local supply chains)
Common enterprise facilities established - 12 (1/site PO-owned, serving the site)
informal business operators enhanced - 120 (at least 10/ site contributing to LED)
Beneficiaries trained in entrepreneurship - 360 (30/site involved in the 30 enterprises)
Beneficiaries trained for wage employment - 60 (at least 5 per site to be sent to TESDA)
Beneficiaries engaged in new enterprises - 60% of the 360 trained on entrepreneurship
% increase in monthly income of trained - 50% average increase across the beneficiaries
TARGETOUTPUTS
Randomized Project Sites Covered - 12 Barangays

7. Dapitan City
Dipolog City
Zamboanga City
Basilan
Marawi City
Iligan City
General Santos City
Sulu
Tawi-Tawi
North Cotabato
Maguindanao
Lanao Sur
Sultan Kudarat
Sarangani
South Cotabato
Davao
Sur
Zamboanga del
Norte
Zamboanga
del Sur Pagadian
City
Kidapawan
City
Cotabato City
DavaoCity
LOCATIONOFPILOTSITES
10Sites forWB-IEapproach
2Sites forFull CDDApproach
Davao Oriental
Bgy. Lucatan, Tarragona
Bgy. Pigcalagan,
Sultan Kudarat
Bgy. Binanga
North, Talayan
Bgy. Koronadal Proper,
Polomolok
Bgy. Datal Bob,
Tiboli
Bgy. Pisa-an. Dinas
Bgy. Seronggon,
Mohammad Adjul
Bgy. Rantian, Piagapo
Bgy. Mamaanun Proper,
Piagapo
Bgy. Tomaong, Tarragona
Bgy Candiis,
Mohammad Adjul
Bgy. Nian, Dinas

8. CONCEPTUAL FRAMEWORK

9. Agro-Aqua Ind’l
Development
(MSME-BLI)
Enterprise
Financing (formal
& Informal)
Economic
Support
Infrastructures
Enlightened Governance:
Practical application of
universal values and
principles such as, but not
limited to vicegerency
transparency, accountability
and shared responsibility
LED Area:
Municipality with
Barangay or
cluster or small
Barangays as
entry point
Simple, less bureaucratic service
Contract or Direct Development
Assistance Agreement is made
directly between the BDA and
the target groups, contract
provisions are discussed,
respective and common
responsibilities are
publicly clarified
Target Groups collectively prepare
project proposals, sign contracts,
receive financial assistance,
procure training tools, supplies,
hire their Trainers or service
providers, select their trainees,
implement and manage their
projects
Conceptual &
Development
Framework on
LED according
to PLEDGE
Grassroots Empowerment:
Target Groups plan, decide,
propose, implement, manage
and assume primary
responsibility for programs,
projects and activities
Conduct of Jobs opportunities survey,
study & develop peripheral enterprise
of anchor firms, study & train
beneficiaries for wage employment in
MSME-BL firms/ industries, conduct
training and provide business
assistance & advisory to informal,
unregulated small business operators
Community-Based
Enterprises & local
supply chains

10. THE PLEDGE METHODOLOGY

11. Identification /selection of Project
site, LGU, partners & target group
mobilization, social preparation,
Project orientation
Application
of PLEDGE
planning
tools,
process,
preparation
of Project
Proposal
Implementation
of training in
skills and group
enterprise dev’t
Assessment,
approval of
Project
Proposal
& signing
of Service
Contract/DDA
Implementation
of Transition
Enterprise
Project (TEP)
Monitoring, evaluation of training
and TEP, applied training in
values transformation, gender
issues environmental safeguards,
grievance management
Organize the
planned supply
chain or common
facility enterprise
Apply for
appropriate
government
registration
Participate and
compete in the
formal economy
How the Project designs PLEDGE as a CDD Methodology
Remain small community-
based group or individual
enterprises
Join the Formal Sector
Project Site: Barangay or
cluster of small Barangays
in a Municipality
Enterprise Groups, POs and BDA
work on long-term organizational and
business relationships, strengthening
the forward and backward linkages of
the supply chain, connect with external
markets, technology, micro finance,
and business development services
4 Months
5 Months

12. Regular
Group
Enterprises
Common
Facility
Enterprises
Other
LED
related
projects
Enterprise Project
Designing
IMPLEMENTATION STAGE
(5 Months)
1. Assessment, approval
of Project Proposals
2. Preparation of Service
contract/ DDA, release
of funds (3 tranches)
3. Selection of Trainees by
PO proponents
4. Procurement of tools,
equipment, supplies
5. Implementation of
approved and required
training program
6. Applied values
Transformation
Training, gender,
environmental
safeguards
7. Setting up Transition
Enterprise or TEP ( for
CBE, CFE)
8. Monitoring & Evaluation
of training and
transition enterprise
project or TEP
9. Organizing the supply
chain or common facility
enterprises or CFE,
organizational
development, linking
with external markets,
technology, micro
finance, business
development services
10. Government registration
of enterprises
Training to establish
Peripheral
Enterprises of
anchor firms/
industries
Training to enhance
the viability of
Informal Business
Operators
Placement/ Training
for Employment thru
Jobs Opportunities
Survey
How CDD Planningis
Adapted in PLEDGE
(4 Months)
Community
enterprise
planning:
Brainstorming
of project ideas,
validation,
prioritization,
segregation
What specific
products or services,
will be the business
of the enterprise.
What can be the
forward and
backward enterprise
elements of the Core
enterprise?
Who will be the
proponent of the
project, gathering
of proponent PO
profile, ID of
trainers, canvassing
of prices of project
inputs, computing
project costs
Identification
/selection of
Project site,
preparation of
community
profile, target
group
mobilization,
Project
orientation
Project Proposal
Preparation
Training
Proposal
preparation

13. THE SERVICE DELIVERY SYSTEM

14. Target Groups and
their Communities
LGU/MTT
review the proposal,
aligning with local
development plan,
possible provision of
technical-financial
assistance
Project Proposals are
referred to the M/B LGU
through the Municipal
Technical Team or MTT
(if there is one)
CEDOs or trained/ authorized community
development workers facilitate community
planning and assist in the preparation of
Project Proposals
The Project
Structure and
Service Delivery
System in BDA
Conduct of skills training,
enterprise development,
applied VTT, Gender,
Environmental Safeguards,
organizational and business
development, implementation
of TEP
Project Proposal is approved,
Service Contract/ DDA is
discussed with proponents,
signed, funding assistance is
released according to provisions
in the Contract thru the
tranche payment scheme
End of training - Tools & equipment are turned over
to PO-proponent, post-training assistance provided;
organizational and business relationships supply chain
or common facility enterprise created, linking with
external markets, technology, micro finance, business
development services
Procurement of approved
tools, equipment and training
supplies in the project proposal
by PO-proponent, delivered/
installed in agreed training /
project venue
Selection of Trainees by
proponent PO/community
based on Project criteria/
guidelines
Board of Directors
Executive Director
CMO Staff
Regional Managers
and Officers
Supervision,
Monitoring,
Technical &
management
audit
BDA CO Final
Assessment
Committee
Project
Proposal goes
to RMOs, pre-
assessed,
endorsed for
approval
10
9
8
7
6
5
4
3
2
1

15. COMMUNITY-BASED ENTERPRISE AND
SUPPLY CHAIN DEVELOPMENT STRATEGY

16. Organizing and managing the enterprise elements/ groups;
• Basic Officers: Managers, Treasurers/Cashiers, Auditors, Bookkeepers
• Business Operation – Savings generation/ profit utilization, Investing savings, capital sourcing,
return of capital, payback period
• TEP monitoring and evaluation - business operation, expansion, potential issues and problems
for sustainability
Raw Materials Supply
ENTERPRISE
(Downstream/ Backward
Linkage)
HowENTERPRISEandSUPPLYCHAINisDevelopedandOrganized
Ex.Pilot projects: Banana Products Processing, Garments and Home Decors,
Food Processing and Catering
Processing/
Making/Manufacturing
ENTERPRISE
Distribution/Marketing
ENTRPRISE
(Upstream/Forward
Linkage)
Training Points:
• Kinds/requirements
• Sources/accessibility
• Quality/adaptability
• Quantity/volume
• Transport
• Acquisition and
selling price
Training Points:
• Production processes
• Designs and specifications
• Products diversification
• Quality control, safety etc.
• Materials & stock mgt.
• Gate pricing formula/
forecasting
Training Points:
• Product packaging
• Trade mark, branding
• Promotion, advertising
• Distribution, placement
• Point of sale, selling
• Selling price formula/
forecasting

17. Training points: Organizing and managing the enterprise
1. Basic Officers: Managers, Treasurers/Cashiers, Auditors, Bookkeepers
2. Business Operation – Rental of equipment, land preparation services, savings generation/ profit
utilization, Investing savings, additional capital sourcing, return of capital/ payback period,
Transition Enterprise Project monitoring and evaluation - business operation, expansion, potential
issues and problems for sustainability
HowCOMMONFACILITYENTERPRISEisDevelopedandOrganized
Ex.Pilot Project: Rice and Corn Production - Land Preparation Equipment Services
Farm Implement
Rental and Land
Preparation Service

18. MOTHER PEOPLE’S
ORGANIZATION
(Single PO or Federation of
Several POs)
Group
Enterprise
(RM supply/
production)
Group
Enterprise
(processing/
manufacturing)
Group
Enterprise
(distribution/
marketing
ORGANIZATIONAL
RELATIONSHIPS BETWEEN
MOTHER PO/PROPONENTS
AND ENTERPRISE GROUPS
Powers & responsibilities of POs
1. Implement training based on contract
2. Accept BDA-provided tools, equipment
3. Assist BDA, partners in monitoring
4. After the training period work with
BDA in establishing long-term
organizational and business
relationships with each enterprise
group including product and business
registration
5. Help strengthen the supply chain
economic environment
Responsibilities of Enterprise Groups
1. Undergo the training program
2. Organize their enterprise, select officers
3. Work with the mother PO and BDA in
establishing post-training organizational
and business relationships
4. Build its own capital base for expansion
and sustainability
5. Help strengthen the supply chain
economic environment
Post-training organizational and business relationships:
1. The MPO will retain ownership of BDA-provided tools
and equipment and other assets acquired from PLEDGE
2. The MPO will take charge of the overall supervision and
management audit of the enterprise groups
3. Both the MPO and the enterprise groups will continue
working on expansion and sustainability and linking with
formal markets, technologies including appropriate
financing programs
4. Both parties will develop profit and loss sharing policies
including mechanisms for grievance redress,
environmental safeguards, gender issues and values
transformation

19. CAPACITY BUILDING PROGRAM

20. LED Program
intervention
alone is not
enough to
improve
people’s lives
or develop their
communities
LED Program to
be effective must
be accompanied
by simple,
practical, less
bureaucratic,
and user-friendly
delivery system
AND TO MAKE THIS WORK:
we must develop Tools,
Systems, Guidelines and
Strategies for implementation
and management and build the
capacity of implementing
agencies to use them
STRATEGICPRINCIPLESONDEVELOPMENTAND
CAPACITYBUILDING

21. CAPACITY BUILDING METHODOLOGY:
PARTICIPATORY ACTION RESEARCH
AND DEVELOPMENT
Tools, Methodology &
Systems Drafting
Consultation
Workshops
Pilot Testing-
Field Validation
Reflection:
Changes,
improvement,
Adaptation
Re-application,
Final utilization
Institutionalization,
Project Utilization Project Staff
(CMO, RMs, CEDOs, BOD)
Partners
(LGU-MTT, BLGU, Service
Providers)
Target Groups
(POs, CBOs)
Continuous
Improvement

22. Steps Group of Activities Tools No of
Days
1 Local partners mobilization (LGU, BGU,
POLCOM, PO) courtesy calls, orientation and
MTT re-activation, target group mobilization
1. How to prepare project site profile
2. How to prepare PO profile
14
2 Community enterprise planning, project
designing, project validation
1. How to facilitate CDD community-based enterprise
planning
2. How to facilitate enterprise planning for WB-IE
3. How to conduct training and development analysis for
community-based enterprise
4
3 PO organization and government registration/
renewal
1. Memorandum of Agreement between and among POs 18
4 Project proposal Preparation, service
provider/ trainers selection, preparation,
canvassing of training inputs
1. Type A- Project Proposal to establish community-
based enterprise or CBE
2. Type B- Project Proposal to establish common facility
enterprise or CFE
45
5 Project Proposal Presentation to BDA RMO,
MTT, partners
1. Assessment guide for project proposals 7
6 Assessment, approval of project proposal and
signing of service contract
1. Service Contract for Type A projects (CBE)
2. Service Contract for Type B projects (CFE)
3. Direct Development Assistance Agreement for Type A
projects (CBE)
4. Direct Development Assistance Agreement for Type B
projects (CFE)
31
13 Tools developed, being utilized 122
(4 Mos.)
Planning Stage
Other CBED-LED Planning Tools Developed
How to conduct Jobs Opportunities Study (pilot tested, placement on-going)
How to conduct study peripheral enterprises of anchor firms and industries (not yet piloted)
How to conduct study to enhance viability of informal business operators (not yet piloted)

23. Steps Group of Activities Tools No of
Days
1 Submission/ processing and release of request for the
1st Tranche of financial assistance/contract price,
cheque clearing
1. Request for Tranche Payments
2. Certificate of inspection of training/ enterprise venue
3. List of recommended trainees
30
2 Appointment of Skills Trainer, preparation of training
materials, procurement of training inputs delivery,
preparation of training venue, inspection of procured
items
1. Letter of Appointment of Trainers
2. How to prepare skills training outline and syllabus
21
3 Liquidation of 1st tranche of payment, request for 2nd
tranche, processing and approval, release of check,
clearing
1. Certificate of Inspection of purchased tools,
equipment and training supplies
(Other required procurement documents for liquidation
is part of the financial support management)
21
4 Implementation of approved skills training program 1. How to apply basic training techniques 21
5 Enterprise development training, supply chain
development, implementation of transition enterprise
project, training in values transformation,
environmental safeguards, grievance management
gender issues, organizational development
1. A-TEP for manufacturing/ processing enterprise
B-TEP for Marketing enterprise
C-TEP for Service enterprise
2. Business records
45
6 Liquidation of 2nd tranche, submission of final reports,
processing and release of 3rd Tranche of financial
assistance/contract price, end of contract
1. Training Application forms
2. Enrolment report
3. Graduation report
4. End of Training Report
5. Budget balance utilization plan
14
7 Monitoring and Evaluation 1. Monitoring evaluation data gathering system forms
2. How to conduct TEP evaluation and provide small
business advisory
16 Tools developed 152
(5 Mos.)
Implementation Stage

24. THANK YOU
SHUKRAN