DILG helps small towns avail of MDG fund

By MYLES JOSEPH E. COLASITO
January 18, 2008

TACLOBAN CITY, Leyte  –  Eleven towns in Eastern Visayas were trained recently by the Department of the Interior and Local Government (DILG) on preparing project proposals for submission to the Municipal Development Fund Office (MDFO), a loan facility for poorer towns.

Participating towns had earlier submitted Letters of Intent to DILG in response to feelers from the office for project proposals that address problems targeted by the Millennium Development Goals (MDGs).

The guest speaker, Paizal Abutazil, Director of the Office of Project Development Services (OPDS) of the DILG Central Office said the MDG Fund was opened for fourth to sixth class towns to help them access financing for projects they could not otherwise afford with their own revenue.

He assured concerns of municipal mayors who attended the opening of the three-day workshop at Hotel Alejandro in Tacloban City on January 14-16, 2008 that interest rates have been made low to suit 4th to 6th class municipalities, in contrast to other financing schemes intended for cities and higher income municipalities.

DILG-8 Regional Director William C. Paler on the other hand, challenged municipal mayors who attended the Opening Rites to take steps to increase their local revenue so their local government could further improve their delivery of basic services. Most LGUs in the country are dependent on the Internal Revenue Allotment (IRA).

Mayors who joined the Open Forum were Hon. Rustico Balderian of Tabon-tabon, Leyte; Arnelito Garing of Cabucgayan, Biliran; Joji Montallana of Jipapad, Eastern Samar; Ricardo Diaz of Palapag, Northern Samar; and Rogelio Tan of Pambujan, Northern Samar.

Participants composed of municipal planning officers, MLGOOs and technical personnel, learned what to include in project proposals, its format, and the financing requirements. The MDG Fund is a joint project of DILG and the Department of Finance which supports loans from 4th to 6th class towns up to 15 Million Pesos aimed at addressing poverty problems, such as those highlighted by results from the Community Based Monitoring System (CBMS) survey that is being advocated by the agency.