Completion Report

Project Number: 46420-002 Loan Number: 3100 Grant Number: 0472 October 2020

Philippines: KALAHI–CIDSS National Community- Driven Development Project

This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – peso (₱)

At Appraisal At Project Completion 15 October 2012 30 June 2018

₱1.00 = $0.0246 $0.0189 $1.00 = ₱40.62 ₱53.00

ABBREVIATIONS

ACT – Area Coordinating Team ADB – Asian Development Bank APFS – annual audited project financial statements BCR – benefit–cost ratio CDD – community-driven development CSO – civil society organization DENR – Department of Environment and Natural Resources DMF – design and monitoring framework DROM – Disaster Response Operations Manual DSWD – Department of Social Welfare and Development EAL – emergency assistance loan EARF – environmental assessment and review framework ECC – environmental compliance certificate EIRR – economic internal rate of return EMB – Environmental Management Bureau ESMP – environmental and social management plan GAP – gender action plan IEE – initial environmental examination KALAHI-CIDSS – Kapit-Bisig Laban sa Kahirapan–Comprehensive and

Integrated Delivery of Social Services KC-NCDDP – KALAHI–CIDSS National Community-Driven Development

Project LGU – local government unit NPMO – National Program Management Office O&M – operation and maintenance RPMO – regional program management office SET – sustainability evaluation test TYMTF – Typhoon Yolanda Multi-Donor Trust Fund

NOTES

(i) The fiscal year (FY) of the Government of the Philippines and its agencies ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ends on 31 December 2019.

(ii) In this report, “$” refers to United States dollars. Vice-President Ahmed M. Saeed, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Director Ayako Inagaki, Human and Social Development Division (SEHS),

SERD Team leader Annika Lawrence, Young Professional, SEHS, SERD Team member Elizabeth Burges-Sims, Senior Social Development Specialist (Gender

and Development), SEHS, SERD Ma. Karmela Dua, Operations Assistant, SEHS, SERD

Yukiko Ito, Senior Social Development Specialist, Thematic Service Advisory Cluster-Social Development, Sustainable Development and Climate Change Department Antoine Morel, Principal Environment Specialist, Office of the Director General, SERD Ruchel Roque-Villaroman, Project Analyst, SEHS, SERD Paul Vandenberg, Senior Economist, Economic Analysis and Operational Support Division, Economic Research and Regional Cooperation Department Judy Vermudo, Associate Safeguards Officer (Resettlement), Philippines Country Office, SERD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. DESIGN AND IMPLEMENTATION 2

A. Project Design and Formulation 2 B. Project Outputs 3 C. Project Costs and Financing 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 5 G. Consultant Recruitment and Procurement 6 H. Gender Equity 7 I. Safeguards 8 J. Monitoring and Reporting 9

III. EVALUATION OF PERFORMANCE 10

A. Relevance 10 B. Effectiveness 11 C. Efficiency 12 D. Sustainability 12 E. Development Impact 13 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 14

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14

A. Issues and Lessons 14 B. Recommendations 15

APPENDIXES:

1. Design and Monitoring Framework 16

2. Summary Table of Subprojects 19

3 Project Cost at Appraisal and Actual 21

4. Project Cost by Financier 22

5. Disbursement of ADB Loan and Grant Proceeds 26

6. Summary of Gender Equality Results and Achievements 28

7. Involuntary Resettlement and Indigenous Peoples Safeguards 65

8. Status of Compliance with Loan Covenants 76

9. Status of Compliance with Grant Covenants 90

10. Economic and Financial Analysis 103

11. Contract Awards of ADB Loan and Grant Proceeds 109

BASIC DATA—LOAN 3100 A. Loan Identification

1. Country Republic of the Philippines 2. Loan number and financing source Loan 3100 (ordinary capital resources) 3. Project title KALAHI-CIDSS National Community-

Driven Development Project 4. Borrower Republic of the Philippines 5. Executing agency Department of Social Welfare and

Development (DSWD) 6. Amount of loan $372,103,895 7. Financing modality Emergency Assistance Loan

B. Loan Data

1. Appraisal – Date started – Date completed

11 February 2013 22 February 2014

2. Loan negotiations – Date started – Date completed

12 December 2013 12 December 2013

3. Date of Board approval 16 December 2013 4. Date of loan agreement 26 March 2014 5. Date of loan effectiveness – In loan agreement – Actual – Number of extensions

24 June 2014 10 June 2014 0

6. Project completion date – Appraisal – Actual

31 December 2017 30 June 2018

7. Loan closing date – In loan agreement – Actual – Number of extensions

30 June 2018 30 June 2018 0

8. Financial closing date – Actual

2 July 2019

9. Terms of loan – Interest rate

Maturity – Grace period

Sum of London interbank offered rate and 0.60% less credit of 0.20% (based on Sections 3.02 and 3.03 of ADB Loan Regulations), and a commitment charge of 0.15% per annum 32 years 8 years

10. Terms of relending Not applicable

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11. Disbursements

a. Dates

Initial Disbursement 29 July 2014

Final Disbursement 1 March 2018

Time Interval 43.1 months

Effective Date 10 June 2014

Actual Closing Date 30 June 2018

Time Interval 48.7 months

b. Amount ($ ‘000)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Cancelled during

Implemen- tation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disbursed

(5)

Undis-bursed Balance (6 = 4–5)

Grants Investment 310,076.00 19,754.04 0.00 329,830.04 293,469.18 36,360.86 Planning 48,505.00 (21,641.85) 0.00 26,863.16 21,283.44 5,579.71

Equipment, vehicles, and furniture

1,073.00 0.00 0.00 1,073.00 912.71 160.29

Advocacy and IEC materials

156.00 (90.43) 0.00 65.57 64.59 0.98

Training, workshops and meetings

ACTs 3,829.00 1,472.41 0.00 5,301.41 4,601.20 700.21 LGU/BUB implementers

5,274.00 1,483.71 0.00 6,757.71 3,746.27 3,011.44

NPMO/RPMO 310.00 43.01 0.00 353.01 352.09 0.92

Consulting Services

Capacity development

1,000.00 (500.00) 0.00 500.00 67.44 432.56

Advocacy 100.00 0.00 0.00 100.00 0.00 100.00 Studies 100.00 0.00 0.00 100.00 38.18 61.82

Monitoring and evaluation

1,160.00 0.00 0.00 1,160.00 345.22 814.78

Unallocated 520.89 (520.89) 0.00 0.00 0.00 0.00 Total 372,103.90 0.00 0.00 372,103.90 324,880.32 47,223.57 ( ) = negative; ACT = Area Coordinating Team; BUB = bottom up budgeting, IEC = information, education, and communication; LGU = local government unit; NPMO = National Program Management Office; RPMO = regional program management office. Source: Asian Development Bank.

C. Project Data

1. Project cost ($ ‘000)

Cost Appraisal Estimate Actual Foreign exchange cost 663,838.00 511,559.44 Local currency cost 0.00 0.00 Total 663,838.00 511,559.44

Source: Asian Development Bank.

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2. Financing plan ($ ‘000)

Cost Appraisal Estimate Actual Implementation cost Borrower financed 267,358.10 186,679.12 ADB financed 372,103.90 324,880.32 Other external financing 0.00 0.00 Total Implementation cost 639,462.00 511,559.44 Interest during construction costs Borrower financed 24,376.00 30,717.88 ADB financed 0.00 0.00 Other external financing 0.00 0.00 Total interest during construction cost 24,376.00 30,717.88 ADB = Asian Development Bank. Source: Asian Development Bank.

3. Cost breakdown by project component ($ ‘000)

Component Appraisal Estimate Actual A. Base Costs

1. Priority community subprojects completed and community capacity enhanced

2. Institutional and organizational capacity strengthened

3. Program management and monitoring and evaluation enhanced

Subtotal (A) B. Contingencies

403,774.00

183,000.00

51,447.00

638,221.00

1,240.00

316,778.87

158,407,84

36,372.73

511,559.44

0.00 Financing Charges During Implementation 24,376.00 30,717.88 Total (A+B+C) 663,838.00 542,277.32

Source: Asian Development Bank.

4. Project schedule

Item Appraisal Estimate Actual Date of contract with consultants Q3 2014

Safeguards (IP) Specialist Q4 2015 Outcome Survey Baseline Data Analysis Q4 2016 Outcome Survey First Round Data Collection Q4 2016 External Monitoring on Indigenous Peoples Q2 2017 Gender Specialist Q2 2017 External Monitoring on Land Acquisition and Resettlement and Rehabilitation

Q3 2017

Electronic Procurement Management System Consultant Q3 2017 Equipment, vehicles, and furniture First procurement Q3 2014 Q4 2014 Last procurement Q4 2017 Q2 2018 Community Subprojects (Works and Goods) First Q3 2014 Q4 2014 Last Q4 2017 Q4 2017

Q = quarter. Source: Asian Development Bank.

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5. Project performance report ratings

Single Project Rating From 24 June 2014 to 30 June 2014 On Track From 1 July 2014 to 31 December 2014 Potential Problem From 1 January 2015 to 31 December 2015 On Track From 1 January 2016 to 31 December 2016 On Track From 1 January 2017 to 31 December 2017 On Track From 1 January 2018 to 30 June 2018 Potential Problem

Source: Asian Development Bank.

D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons No. of

Person-Days Specialization of

Members Reconnaissance Fact-finding

15–19 October 2012 11–22 February 2013

11 21

44 42

a, b, c, d, f, g, i, j a, b, c, d, e, f

Inception 22 June–11 July 2014 9 45 a, b, e, f Review 1 7–23 January 2015 11 77 a, b, e, f, g Review 2 9–17 April, 27 April–6

May 2015 8 144 a, b, e, f, g

Review 3 5–16 October 2015 7 70 a, b, f, g Midterm review 14–18 March 2016 9 18 a, b, e, f, g 17–20 August 2016 (field

visit) 8 40 a, b, f, h

Review 4 21–29 November 2016 9 72 a, b, e, f Review 5 6 November–15

December 2017 9 72 a, b, e, f, h

Final Review 4–14 June 2018 10 60 a, b, e, f, h Project completion review 30–31 January 2020 7 10.5 a, b, e, f, h, i

a = project officer/social sector specialist, b = team member/social development specialist, c = country economist, d = team member/health specialist, e = national officer/project analyst, f = technical assistance consultant(s); g = safeguards specialist, h = safeguards officer, i = gender specialist/consultant (Philippines Country Office); j = counsel. Source: Asian Development Bank.

BASIC DATA—GRANT 0472 A. Grant Identification

1. Country Republic of the Philippines 2. Grant number and financing

source 0472 (Typhoon Yolanda Multi-Donor Trust Fund)

3. Project title KALAHI-CIDSS National Community-Driven Development Project (Additional Financing)

4. Recipient Republic of the Philippines 5. Executing agency Department of Social Welfare and

Development (DSWD) 6. Amount of grant $5,000,000 7. Financing modality Emergency Assistance

B. Grant Data

1. Appraisal – Date started – Date completed

Not applicable1

2. Grant negotiations – Date started – Date completed

4 February 2016 4 February 2016

3. Date of approval 4 March 20162 4. Date of grant agreement 21 March 2016 5. Date of grant effectiveness – In grant agreement – Actual – Number of extensions

19 June 2016 11 May 2016 0

6. Project completion date – Appraisal – Actual

31 December 2017 30 June 2018

7. Grant closing date – In grant agreement – Actual – Number of extensions

30 June 2018 30 June 2018 0

8. Financial closing date – Actual

2 July 2019

9. Terms of loan Not applicable 10. Terms of relending

Not applicable

1 The additional financing was processed through a submission of a proposal from the government to the Typhoon

Yolanda Multi-Donor Trust Fund Steering Committee. The proposal was approved on 29 July 2015. 2 The Southeast Asia Department prepared a memorandum to the President seeking approval to administer the grant

as additional financing to the KALAHI-CIDSS National Community-Driven Development Project.

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11. Disbursements

a. Dates

Initial Disbursement 29 June 2016

Final Disbursement 9 February 2018

Time Interval 19.4 months

Effective Date 11 May 2016

Actual Closing Date 30 June 2018

Time Interval 25.7 months

b. Amount ($ ‘000)

Category

Original Allocation

(1)

Increased during

Implemen-tation

(2)

Cancelled during

Implemen-tation

(3)

Last Revised Allocation (4=1+2–3)

Amount Disbursed (5)

Undisbursed Balance (6 = 4–5)

Grants Investments 4,295.00 0.00 0.00 4,295.00 3,038,51 1,256.49 Planning 323.00 0.00 0.00 323.00 222.02 100.98 Equipment and Furniture

20.00 0.00 0.00 20.00 0.00 20.00

Advocacy and IEC Materials

23.00 0.00 0.00 23.00 0.00 23.00

Training, Workshops, and Meetings

120.00 0.00 0.00 120.00 28.45 91.55

Monitoring and Evaluation

130.00 0.00 0.00 130.00 9.22 120.78

Recurrent costs 50.00 0.00 0.00 50.00 0.24 49.76 Unallocated 39.00 0.00 0.00 39.00 0.00 39.00 Total 5,000.00 0.00 0.00 5,000,00 3,298.44 1,701.56 IEC = information, education, and communication. Source. Asian Development Bank.

C. Project Data

1. Project cost ($ ‘000)

Cost Appraisal Estimate Actual Foreign exchange cost 5,000.00 3,298.44 Local currency cost 473.00 404.00 Total 5,473.00 3,702.44

Source: Asian Development Bank.

2. Financing plan ($ ‘000)

Cost Appraisal Estimate Actual Implementation cost Borrower financed 473.00 404.00 ADB financed 5,000.00 3,298.44 Other external financing 0.00 0.00 Total implementation cost 5,473.00 3,702.44

ADB = Asian Development Bank. Source: Asian Development Bank.

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3. Cost breakdown by project component ($ ‘000)

Component Appraisal Estimate Actual A. Base Costs

1. Priority community subprojects completed and community capacity enhanced

2. Institutional and organizational capacity strengthened

3. Program management and monitoring and evaluation enhanced

Subtotal (A) B. Contingencies C. Financing Charges During Implementation

4,620.00

141.00

712.00

5,473.00

0.00 0.00

3,261.00

28.22

413.22

3,702.44

0.00 0.00

Total (A+B+C) 5,473.00 3,702.44 Source: Asian Development Bank.

4. Project schedule

Item Appraisal Estimate Actual Date of contract with consultants None None Equipment, vehicles, and furniture First procurement Q3 2016 None Last procurement Q4 2017 Community Subprojects (Livelihood) First Q2 2016 Q3 2016 Last Q4 2016 Q2 2018

Q = quarter. Source: Asian Development Bank.

5. Project performance report ratings

Single Project Rating From 11 May 2016 to 31 December 2016 On Track From 1 January 2017 to 31 December 2017 On Track From 1 January 2018 to 30 June 2018 Potential Problem

Source: Asian Development Bank.

D. Data on Asian Development Bank Missions3

D. Name of Missiona Date No. of

Persons No. of

Person-Days Specialization of Membersb

Review 1 17–20 August 2016 (field visit/MTR L3100)

8 40 a, b, f, h

Review 2 21–29 November 2016 9 72 a, b, e, f Review 3 6 November–15

December 2017 9 72 a, b, e, f, h

Final Review 4–14 June 2018 10 60 a, b, e, f, h Project completion review 30–31 January 2020 7 10.5 a, b, e, f, h, i

a = project officer/social sector specialist, b = team member/social development specialist, c = country economist, d = team member/health specialist, e= national officer/project analyst, f = technical assistance consultant(s), g = safeguards specialist, h = safeguards officer, i = gender consultant (Philippines Country Office). Source: Asian Development Bank.

3 The same missions for the Kapit-Bisig Laban sa Kahirapan–Comprehensive and Integrated Delivery of Social

Services National Community-Driven Development Project.

I. PROJECT DESCRIPTION 1. A devastating typhoon (Haiyan or “Yolanda” locally) hit the central Philippines on 8 November 2013. The final damage report indicated a death toll of more than 7,000, with 28,000 injured. About 890,000 families, or 4.1 million people, were displaced. The government estimated the damage at $2.2 billion.1 The Asian Development Bank (ADB) estimated that an additional 1.5 million persons may have fallen into poverty immediately after the typhoon.2

2. The Philippines’ Department of Social Welfare and Development (DSWD) utilized the existing Kapit-Bisig Laban sa Kahirapan (Linking Arms Against Poverty)–Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) system to support recovery and rehabilitation. KALAHI-CIDSS is a nationwide, community-driven development (CDD) government program that began in 2003. Its objectives are to improve service delivery, local governance, and community empowerment in accessing services. KALAHI-CIDSS was present in about 90% of the Yolanda-affected areas. It had a well-established operating system to channel funds and provide technical support on community projects and social services to poor communities.

3. On 16 December 2013, ADB approved a $372.1 million emergency assistance loan (EAL) for the KALAHI–CIDSS National Community-Driven Development Project to restore basic social services and rebuild communities through the expansion of the DSWD’s KALAHI–CIDSS National Community-Driven Development Project in 512 Typhoon Yolanda-affected municipalities (footnote 2). 3 Other development partners supported the overall KALAHI-CIDSS DSWD-led program in parallel to maximize its reach. In March 2016, ADB approved an additional financing grant of $5 million from the Typhoon Yolanda Multi-Donor Trust Fund (TYMTF), which financed livelihood and enterprise subprojects in 262 municipalities.4 4. The project’s expected impact was improved resiliency of poor communities to natural hazards. The expected outcome was improved access to services and infrastructure for communities in affected provinces and their participation in more inclusive local disaster risk reduction and management planning, budgeting, and implementation. The project outputs were (i) CDD subprojects selected, implemented, and completed; (ii) institutional and organizational capacity strengthened; and (iii) program management and monitoring and evaluation systems enhanced. The design and monitoring framework (DMF) and assessment of achievements are in Appendix 1. 5. The project loan became effective on 10 June 2014 and closed on 30 June 2018. The additional financing grant became effective on 11 May 2016 and closed on 30 June 2018 (after 26 months of implementation). The DSWD was the executing agency for the project.

1 Government of the Philippines, National Disaster Risk Reduction and Management Council. 2013. Final Report on

Typhoon Yolanda. Manila. 2 ADB. 2013. Republic of the Philippines: KALAHI–CIDSS National Community-Driven Development Project. Manila. 3 The total cost of the project was $1.1 billion, of which the government financed $270 million (24%). The full program

covered 820 target municipalities. 4 The TYMTF was a funding facility under the Department of Finance to mobilize resources from international sources

and the private sector to support the recovery and rehabilitation program of the government.

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II. DESIGN AND IMPLEMENTATION A. Project Design and Formulation 6. The project design was relevant at appraisal and continued to be relevant until completion. The project was aligned with the government’s Yolanda Recovery and Rehabilitation Plan;5 and with the Philippine Development Plan,6 which includes managing climate adaptation and disaster risks as a priority. It was consistent with ADB’s Strategy 2020; the country partnership strategy for the Philippines, 2011–2016, which aimed for more effective social service delivery; and ADB’s Disaster and Emergency Assistance Policy for assisting governments to restore and rebuild economic, social, and governance activities in typhoon-affected communities.7 7. ADB closely coordinated with the government and development partners in designing the project and complementing rehabilitation efforts. The presence of KALAHI-CIDSS in disaster-affected areas made it well positioned to respond to urgent post-disaster needs and facilitate the delivery of services in a coordinated and cohesive manner. The project built on the KALAHI-CIDSS network already in place and utilized its existing mechanisms to deliver project outputs.8 The design incorporated lessons from other projects in the region that have successfully used CDD approaches in reconstructing and rebuilding after major disasters.9 8. The project design identified six key risks associated with project implementation, particularly in a post-disaster setting, potentially affecting project outcomes and outputs. 10 Mitigation measures were designed and established to avoid or minimize adverse impacts on project achievements. Mitigation measures to address low capacity to implement livelihood activities (risk 1) were insufficient and affected the achievement of outputs (paras. 10 and 54). 9. The project implementation period was set at the maximum of 4 years allowed for EALs.11 Risk mitigation measures adopted in project design included building the capacity of front-line staff, regular monitoring by the executing agency and ADB, dialogue among stakeholders and development partners, and enhancing financial and monitoring systems to support the increase in subprojects reporting.

10. The $5 million additional financing grant from the TYMTF supported community-identified livelihood needs and the development of modules for community facilitation of livelihood

5 Government of the Philippines, National Economic Development Authority. 2013. Reconstruction Assistance on

Yolanda: Build Back Better as of 16 December 2013. Manila. 6 Government of the Philippines, National Economic Development Authority. 2011. Philippine Development Plan,

2011–2016. Manila (publicly released on 27 May). 7 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020.

Manila; ADB. 2011. Country Partnership Strategy: Philippines, 2011–2016; and ADB. 2004. Disaster and Emergency Assistance Policy. Manila.

8 KC-NCDDP was operating in 90% of the Yolanda-affected areas and was well positioned to address the post-disaster needs of communities through its operation and financial systems.

9 Lessons on fast tracking the community planning process, frontloading grant resources, and community participation in the drawing of boundaries were drawn from interventions in Indonesia after the 2004 tsunami and opening up to livelihood intervention to restore small enterprises from other post-disaster CDD responses during 2004–2010.

10 These included: (i) inadequate institutional and personnel capacity to implement and monitor the project, (ii) political interference in subproject selection and implementation, (iii) duplication of reconstruction efforts, (iv) low participation of women, (v) errors in recording and reporting project transactions and other information due to high volume, and (vi) unclear information regarding ownership or right over land to be utilized for subprojects.

11 Operations Manual section D7 (Disaster and Emergency Assistance) allows an implementation period of up to 2 years for proposed EALs and may be exceptionally extended for 2 additional years when the level of destruction and dislocation are deemed extreme, which was the case for Typhoon Yolanda.

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activities.12 This enhanced the relevance of the project, as livelihood support was much in demand. However, a more careful risk assessment for the additional financing would have been beneficial, as the problems encountered—namely, insufficient time to implement the livelihood-support interventions, and insufficient staff competencies—were foreseeable. B. Project Outputs 11. Output 1: Community-driven development subprojects selected, implemented, and completed. Output 1 was substantially achieved. A total of 15,541 community subprojects were financed under the loan and additional financing grant (Appendix 2). Subprojects were spread across 10,572 barangays (villages) in 512 municipalities and 38 provinces. A total of 15,482 (99%) subprojects were completed according to planned designs and standards,13 while 59 (1%) were damaged or cancelled. Of the completed subprojects, 510 were completed with design modifications. 14 Of the unrealized subprojects, one (rehabilitation of a seawall in Claveria, Masbate) was damaged by subsequent Typhoon Nona.15 Another 58 were discontinued after communities waived implementation because of insufficient time before project closing.16 A total of 3,681,644 households benefitted from the subprojects. About two-thirds of the completed subprojects (10,011) received financing within 6 months of loan effectiveness. Of the 15,541 funded subprojects, 10,010 (64%) adopted the Disaster Response Operations Modality (DROM) to repair and rehabilitate structures damaged by the typhoon and build resilient facilities.

12. The project exceeded or met four of the five targets under output 1. It exceeded the target of meeting basic financial standards (100% of subprojects against the targeted 85%) and achieving satisfactory sustainability evaluation ratings (98% of subprojects against the targeted 85%).17 The project met its target of complying with technical, timeline, and budget standards (85% of subprojects), and the gender target of having at least 20% of jobs held by women. One target (number of completed subprojects under the additional financing) was partially achieved—only 113 out of the targeted 150 subprojects were completed, as the time frame was too short to complete many of these subprojects. The Department of Finance approved the grant agreement for the additional financing in March 2016, but the treasury did not transfer the funds to the DSWD until August 2016. This left the DSWD with only 2 years and 3 months to complete the additional financing targets. This delayed community mobilization, provision of technical assistance, and training of implementers and beneficiaries. Project staff had insufficient capacity as most had previously worked only on community infrastructure under KALAHI-CIDSS interventions, and not in livelihood programming.

13. Output 2: Institutional and organizational capacity strengthened. Output 2 was achieved. Output 2 supported capacity building for KC-NCDDP staff and local government counterparts to allow them to implement the project. The project mobilized 546,620 community volunteers, 334,538 (61%) of whom were women. Community volunteers received training on situational analysis and needs identification, preparing project proposals, financial management

12 The Department of Finance invited the DSWD to apply for additional financing from the TYMTF when new funds

were added after 2 years in 2015. 13 Of these, 15,369 were under the loan and 113 were under the additional financing. 14 Of these, 506 were under the loan and four were under the additional financing. 15 Typhoon Melor, known in the Philippines as Typhoon Nona, was a powerful tropical cyclone that struck the

Philippines in December 2015. 16 Some communities decided not to pursue subprojects before the start of procurement of goods and civil works. 17 A multisectoral team composed of municipal and barangay local government units (LGUs), DSWD staff, and

volunteers conduct sustainability evaluation tests (SETs) to assess the status and actual utilization of completed subprojects. The team administers the test 6 months after subproject completion and every year thereafter.

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and procurement, and subproject implementation and management. Of the 311,519 volunteers trained, 195,885 (63%) were women.

14. The project exceeded all three performance targets under output 2. All (100%) KC-NCDDP municipalities saw increased membership of people and civil society organizations in local development councils and special bodies (target: 85%). The project trained an average of 29 community volunteers per barangay on community development skills; 64% were women (target: 10 per barangay with 50% women). A total of 189,872 volunteers occupied leadership positions as chairpersons in the volunteer committees; about 113,209 were women (60% of committee leadership positions—target was 50%).

15. Output 3: Program management and monitoring and evaluation systems enhanced. Output 3 was partially achieved at the time of finalizing this PCR. However, full achievement is expected by March 2021 based on advanced progress made. Output 3 supported the development and maintenance of a system for fund requests, generation of sex-disaggregated data, and implementation of the gender action plan (GAP). The project installed the program management information system in all covered municipalities with both online and offline versions, including the request-for-fund-release system. This contributed to improved monitoring and compliance with reporting requirements, including those on safeguards and gender.

16. Three of the four targets have been achieved (system for community fund request fully operational; Yolanda-affected municipalities generating sex-disaggregated data; and GAP completed). The completion of the gender equality study under the GAP was delayed until after project closing. The remaining target—a study on subproject effectiveness and livelihood interventions, which is part of the outcome survey—is ongoing and expected to be completed by March 2021. The studies on gender and livelihood interventions were covered under separate but supporting technical assistance.18 C. Project Costs and Financing 17. The original project cost was estimated at $663.8 million, including $372.1 million financed by ADB’s ordinary capital resources (Appendix 3) and government counterpart funding of $291.7 million (Appendix 4).19 Additional grant financing under the TYMTF provided $5 million, with the government contributing $0.5 million. At project completion, the total project cost amounted to $546.0 million; of which, ADB financed $328.2 million (60.1%)—$324.9 million from loan proceeds and $3.3 million from grant proceeds; and the government financed $217.8 million (39.9%). The actual cost for the outputs financed by ADB was $48.9 million (13%), which was lower than estimated as a result of significant exchange rate fluctuations and shortened planning and community mobilization procedures.20 The difference between the estimated cost at appraisal and the actual cost is reflected in the significant savings in recurrent costs ($71 million) and planning grants to communities ($70 million). At financial closing, $47.2 million was cancelled for the loan, and $1.7 million was cancelled for the grant.

18 Two special gender-focused studies were conducted under an ADB Japan Fund for Poverty Reduction grant: (i)

Gender Mainstreaming in the KC-NCDDP: An Assessment, December 2018; and (ii) Increasing Livelihood and Entrepreneurial Opportunities: Lessons from Select KC-NCDDP Livelihood Projects, December 2018; ADB. 2013. Technical Assistance to the Republic of the Philippines for Enhancing Capacities for the KALAHI–CIDSS National Community-Driven Development Project. Manila. These studies were not funded from this project, as other grant financing became available to the government under the technical assistance, but they contributed to determining the effectiveness of gender and livelihood enhancements under the KC-NCDDP.

19 Counterpart funding covered additional community grants, incremental operating costs, and contract staff salaries. 20 At appraisal, the Philippine peso was at ₱40.62: $1. At completion, this was ₱53.00: $1.

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18. Reallocations by expenditure category were made during implementation. The government requested, and ADB approved in December 2016, a reallocation of $22.8 million to community investment grants (87%) and training (13%), sourced from planning grants, consulting services for capacity development, advocacy and information, education, and communication materials. 19. For the additional financing, the DSWD utilized $3.3 million (66%), almost all of which was spent on community grants. Delays in subproject approvals and fund transfers from the DSWD finance unit delayed subproject implementation under the additional financing. Most livelihood and enterprise building subprojects were a combination of infrastructure, training, and other inputs; they involved coordination with other agencies were thus more complex than other KALAHI-CIDSS processes. The resulting increase in the volume of transactions for this new type of subproject and inadequate capacity to process them led to underutilization of the fund. D. Disbursements 20. At financial closing, the cumulative disbursement was $324.9 million for the loan (87% of the loan amount) and $3.3 million (66%) for the additional financing (para. 17). Community grants represented 92% of all disbursements. Appendix 5 shows annual disbursements. 21. The first disbursement (advance) was on 29 July 2014. Total disbursements for 2014 were $37.4 million (11% of the loan), which were much lower than the projected $93 million. Disbursements accelerated in 2015, bringing cumulative disbursements to $149.4 million, or 59%. Such a slow start and quick peak are common in CDD programs. By December 2017, disbursements were back on track, with cumulative disbursements at $329.3 million, or 88% of the loan amount against the elapsed time period of 78% from effectiveness. For the additional financing, ADB approved an initial advance of $2.1 million on 29 June 2016 and another $0.5 million on 27 July 2016. 22. An issue that impacted disbursement was the level of the advance account (10% of the loan of up to 6 months projection, whichever was lower) and the speed at which replenishments could be completed. ADB addressed this by providing for a temporary increase in the level of the advance account of up to 5 times the existing level to accommodate the surge in funding requirements for disbursement projections in 2015. These timely actions resulted in the 59% cumulative disbursement by 2015, bringing the project back on-track.

E. Project Schedule 23. The project was approved on 13 December 2013 as an EAL. It became effective on 10 June 2014. The additional financing grant became effective on 11 May 2016 and closed on 30 June 2018 (para. 10). Most activities were completed, but some subprojects were cancelled because they could not be completed by project closing. The project closed on 30 June 2018, as scheduled. A project extension could not be accommodated because of the maximum 4-year period for EALs. The delayed receipt of refund of unused funds from the government caused a 1-year gap between project and financial closing. F. Implementation Arrangements 24. The project’s implementation arrangements were adequate and responsive to project needs. The DSWD, as the executing agency, directed the overall management and supervision

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of the project, including coordination with other national government agencies. The Human Development and Poverty Reduction Cluster of the Cabinet, the National Steering Committee, and the National Inter-Agency Program Implementation Team provided oversight. The National Steering Committee included representatives of civil society organizations. A National Program Management Office (NPMO) provided policy guidance and technical support to regional program management offices (RPMOs) which were responsible for field operations. At the municipal level, area coordinating teams were organized to facilitate project processes and provide capacity building support to communities, volunteers, and local government units (LGUs). At the village level, community-based organizations and villagers actively participated in subproject planning and implementation. 25. The DSWD and LGUs entered into memoranda of agreement to define working relationships under the project. LGUs provided overall guidance in local economic and social development planning, preparing legislation to provide mechanisms for transparency and accountability and providing counterpart funds. The memoranda of agreement required LGUs to take over subprojects if not completed and to provide support for operations and management after subproject completion. 26. To address the post-disaster needs of communities, the project employed a shortened planning and implementation cycle called the DROM Community Empowerment Activity Cycle to accelerate fund transfer and delivery of services to typhoon-affected areas. This allowed greater flexibility in responding to the emergency with existing resources and systems (including a network of trained facilitators, community committees, and volunteers) and sped up community response during early recovery and rehabilitation. This special modality was used in the first subproject cycle. Succeeding cycles followed the regular KC-NCDDP procedures.21 27. No changes in implementation arrangements were made for the original project or the additional financing activities. However, the staff of the DSWD, as the executing agency, was stretched to capacity, which slowed down aspects of community mobilization and subproject design preparation in the early stages of the project. The issues were eventually addressed through increased training and coaching in subproject design and community organizing for facilitators provided by the project. G. Consultant Recruitment and Procurement 28. Under output 1, procurement of goods and works were undertaken using a community-based procurement manual approved by ADB. Most contracts were for less than $250. Contracts below $23,255 for goods and $46,500 for works were procured through community shopping, while contracts above $23,255 for goods and $46,500 for works were procured through community procured bidding. ADB undertook post-review sampling at the barangay level. Total procurement for output 1 was $316.8 million. 29. For outputs 2 and 3, the executing agency procured goods through shopping, and consulting services through consultant qualification selection and individual consultant selection methods, consistent with the project procurement plan. The DSWD recruited a consulting firm to manage training activities for the NPMO, RPMOs, area coordinating teams, and LGU implementers through consultant qualification selection in 2014. This contract underwent ADB’s prior review. Consulting services for various studies were procured through individual consultant

21 The KC-NCDDP follows a cycle of social preparation, community planning, and community-led subproject design,

implementation, and evaluation. The cycle normally takes 8–12 months.

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selection. Only 15% of the planned value of consulting services under outputs 2 and 3 was used. The NPMO decided not to engage other consultants proposed under the original plan, and instead redirected the consulting services budget toward management information system development. 30. The procurement plan underwent several revisions during project implementation. For output 1, the original value of $359.2 million for community subprojects was reduced because of foreign exchange gains (footnote 19). In 2016, the DSWD requested that grants meant to finance the cost of community planning exercises (originally $18.2 million) be realigned to cover the additional cost of remuneration of technical service providers. 31. The project supported the development of an electronic procurement management system—an online monitoring system for the NPMO, RPMOs, and community-managed procurement to provide transparent data in real time. This system was designed to provide information on participating bidders, names of winning bidders, procurement methods, and descriptions of goods to assist the DSWD in identifying issues early on. Implementation of the system encountered challenges, including compatibility and connectivity issues with the project’s geo-tagging software. There were also problems synchronizing the system with the project monitoring and evaluation system. Because of these issues, the system was not fully operationalized during the project. The project utilized regular procurement methods instead. 32. Other procurement challenges included a limited selection of contractors in geographically isolated project areas, price escalation, and delays in contract completion. These challenges were minimized by (i) advertising procurement packages to a wider audience, and (ii) conducting workshops with service providers to orient them on procurement opportunities and rules under the project. These actions increased bidder participation. Overall, contract award projections and estimates were realistic and based on CDD practices and experience. The performance of the consultants was satisfactory, as reflected in the back-to-office-reports of ADB review missions. H. Gender Equity 33. The project had a gender equity theme. All 10 GAP targets were achieved, and 95% of the GAP activities (20 of 21) under the project were implemented, making the project successful in terms of GAP implementation. Issuance of the KC-NCDDP Gender and Development Framework; 22 creation of a gender mainstreaming toolkit; consistent collection of sex-disaggregated and gender-related data through new project templates; use of gender analysis in all stages of the project through gender-sensitive tools for analysis; and integrated modules on gender in all training programs will serve to sustain the gains of the project. The implementers of succeeding CDD programs will be able to draw from the gender-mainstreamed approach and tools developed under this project. The GAP implementation matrix and further analysis of the project’s impact on women are in Appendix 6. 34. The project’s gender actions contributed to a significant improvement in the participation and leadership of women in local activities. Women comprised 60% (113,209 of 189,872) of volunteers holding leadership positions (target: 50%) and 59% of barangay representation team leaders (11,816 of 21,559). Women comprised 61% (334,538 of 546,620) of volunteers (target: 50%). 23 Women also comprised 63% (54,706 out of 87,377) of participants in the project

22 Government of the Philippines, DSWD. 2013. KALAHI CIDSS NCDDP Operations Manual. Manila. The KC-NCDDP

Gender and Development Framework outlines the strategic actions to be embedded in key project processes to effectively promote and protect women’s rights and full benefits in the Project.

23 Volunteers sat on the audit, procurement, bookkeeping, monitoring, and project implementation committees.

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development, criteria setting, and participatory resource allocation workshops, and 64% (246,103 of 379,847) of participants in all capacity building activities.24 Of the 371,341 workers hired by the project, 63% were women (target: 20–30%). The project contributed to women’s political empowerment, improved access to non-traditional employment, redistribution of unpaid care work and reduction of time poverty and strengthened the policy environment for gender mainstreaming in CDD initiatives. 35. The project team regularly assessed the status of GAP implementation, and GAP reporting was incorporated in quarterly progress reports. The project’s gender specialist supported the reporting and followed up on the progress of GAP indicators. I. Safeguards 36. The project was classified category B for environment and involuntary resettlement, and category A for indigenous peoples. Social-safeguard procedures developed under the project included an environmental and social management framework, an indigenous peoples planning framework, and a resettlement framework. The KC-NCDDP environmental and social safeguard specialists screened all subprojects based on these frameworks. Each subproject community prepared an environmental and social management plan (ESMP), aided by an ESMP facilitator’s guide for updating, monitoring, and reporting on ESMP compliance. Despite early delays in the submission of safeguard monitoring reports, all communities updated their ESMPs and database. 37. Indigenous peoples. Because of the diverse sociocultural groups and the large number of indigenous peoples engaged in the project, safeguard components were strengthened to ensure that all ADB Safeguard Policy Statement (2009) requirements were met. An indigenous peoples planning framework guaranteed that indigenous peoples were informed, consulted, and could meaningfully participate in subproject identification, prioritization, and implementation. The project developed an indigenous peoples facilitation guide that provided community facilitators with practical instructions on how to engage indigenous communities in a culturally appropriate manner. Capacity building activities enhanced the cultural sensitivity of community facilitators. The project contributed to the improvement of indigenous peoples’ participation in community activities. The indigenous peoples household participation rate in barangay assemblies under the project was 55%, exceeding the DMF target of 45%. Basic infrastructure subprojects, such as rehabilitated farm-to-market roads, resulted in increased incomes in remote indigenous peoples areas; construction of tribal halls which were viewed as support of indigenous peoples’ identity; and delineation of ancestral domain subprojects which addressed tenurial issues of indigenous peoples. Indigenous peoples-related grievances were reported and almost all (99.9%) were resolved. The details of the indigenous peoples development framework implementation and analysis of impacts to indigenous peoples are in Appendix 7.

38. Involuntary resettlement. The rural infrastructure subprojects were small and were constructed in existing sites that did not lead to adverse involuntary resettlement impacts. The project utilized the following land acquisition instruments: (i) usufruct25 agreement; (ii) deed of donation; (iii) certifications and permits from LGUs and national government agencies, including the Department of Environment and Natural Resources (DENR), the Department of Education, and the Department of Agrarian Reform; and (iv) tribal resolutions executed by indigenous

24 Volunteers participated in training programs on: participatory situation analysis, project development, community

finance, procurement, community infrastructure, gender and development, operation and maintenance, monitoring, grievance and redress, and organizational development management.

25 Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it, or the law otherwise provides.

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communities. Most of the infrastructure subprojects were built on public or government-owned lots acquired through LGU resolutions or other legal instruments. Few subprojects were located on private land that required acquisition by means of deed of donation or usufruct agreement. A total of 1,218 subprojects affected persons’ lands. There were no reported grievances related to the construction of subprojects. Non-contentious queries and comments on compliance with the project processes and other project implementation arrangements were reported. All reported and received grievances on procurement processes and financial management were resolved. 39. Environment. All subprojects were screened for environmental safeguards by a KC-NCDDP environmental safeguard specialist in accordance with the mechanism defined in the environmental assessment and review framework (EARF). ADB cleared all safeguard screening reports before commencement of works. Subprojects with potential for significant adverse impacts, and activities listed on the Prohibited Investment Activities List of ADB’s Safeguard Policy Statement were not eligible. Subprojects were not anticipated to have significant adverse environmental impacts, and potential adverse environmental impacts were mitigated through the ESMP prepared for each subproject. A total of 15,482 ESMPs were prepared and submitted. 40. Three subprojects were classified category B for environment under the Philippine Environmental Impact Statement System. The subproject communities and the LGUs prepared initial environmental examination (IEE) reports for these three subprojects and submitted them to the regional offices of Environmental Management Bureau (EMB)-DENR. IEEs were also submitted to ADB for disclosure on the ADB website. The EMB issued environmental compliance certificates for these subprojects. A total of 7,488 category C subprojects for environment under the Philippine Environmental Impact Statement System were issued certificates of non-coverage from the EMB-DENR; these were not required to secure an environmental compliance certificate. 41. The project was generally compliant with all applicable environment, health, and safety laws and regulations of the Philippines; environmental safeguards; the EARF; and all measures and requirements defined in the IEEs, ESMPs, and indigenous peoples plans. ADB prepared eight semiannual safeguard monitoring reports and conducted eight review missions that confirmed that subprojects had not resulted in significant adverse impacts. Sites were kept clean and safe during and after completion of physical activities. No accident involving construction workers or members of the community was reported. No major complaint was received during facility construction. There are no outstanding involuntary resettlement or environment safeguard issues. There are areas for improvement however, such as in documenting occupational health and safety incidents and accidents during project implementation. J. Monitoring and Reporting 42. The loan had 28 covenants, all of which have been complied with (although one was delayed to allow for completion of a gender study under the GAP). The additional financing had 24 covenants; 23 of which have been fully complied with. The covenant that remains outstanding involves the completion of the study on effectiveness of gender actions, which is still being finalized. The delay in compliance did not adversely impact the project outputs or outcome. The details of compliance with covenants are in Appendixes 8 and 9. 43. In June 2018, an incident of fraud at the community level was disclosed involving $38,527.84 of proceeds from the project intended for subproject investments. The project financial management team of Region 8 (Eastern Visayas) found unauthorized encashment of several checks, allegedly by one of the project staff, earmarked for three barangays in two municipalities. A case was filed by the DSWD Legal Service and was ongoing as of June 2020. The DSWD

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reported the issue to ADB. The allegation of fraud was raised with the ADB Office of Anticorruption and Integrity, which opted to close the investigation given that DSWD was also conducting its own investigation on the allegations, filed the appropriate charges against the individuals involved, and refunded the misappropriated funds to ADB. 44. Considering that the above incident involved a small percentage of the total loan and grant amounts (0.005% of the loan and 0.38% of the grant), the project completion report team assesses the DSWD’s financial capability to implement the project as reasonable. 45. The Philippines Commission on Audit audited the project regularly. The annual audited project financial statements (APFS) for the project were generally in order. The auditor issued unqualified opinions on the APFS for fiscal years 2014–2018, except for fiscal year 2015. One recurring finding of the audits was that submission of liquidation of fund transfers to various communities for subproject implementation was delayed. All audit findings and recommendations were complied with and implemented by the DSWD prior to project closing. Submission of three out of five APFS was delayed by at least a day (and up to 2.5 months). 46. Monitoring and progress reporting arrangements were generally adequate. The DSWD complied with reporting requirements in the DMF, GAP, and in the loan and grant covenants. However, the Department of Public Works and Highways was delayed in the submission and disclosure of the social monitoring reports to ADB. The reports are available on the ADB website.

III. EVALUATION OF PERFORMANCE A. Relevance 47. The project is rated highly relevant. There was a clear need for the project, given the devastating effect of the typhoon. It promoted inclusive economic growth by targeting the poorest municipalities and communities and supported the country’s urgent needs after a devastating typhoon. The project modality was swiftly adjusted from an investment project to an EAL to address the emergency. The project empowered poor communities, enabling them to access resources quickly for restoring basic social services and rebuilding after Typhoon Yolanda. 48. The project was aligned with ADB’s Disaster and Emergency Assistance Policy by assisting the government in restoring and rebuilding economic, social, and governance activities in typhoon-affected communities. 26 It remains relevant and consistent with ADB’s country partnership strategy for the Philippines, 2018–2023, in particular pillar 2 (promoting local development and improving resilience) and pillar 3 (investing in people). 27 The additional financing was innovative, supporting livelihood restoration through the same CDD approach, and addressed challenges not addressed in the original design. Support for affected communities was transformational, enabling them to restore destroyed infrastructure and livelihoods. 49. The project’s intended outcomes were aligned with country development priorities and supported the government’s Yolanda Recovery and Rehabilitation Plan. The EAL modality met the needs of the government and affected communities and allowed ADB to respond faster and more flexibly to post-disaster challenges.28 The choice of the DSWD as the executing agency and CDD as the vehicle were also relevant. KALAHI-CIDSS was well positioned to respond to urgent

26 ADB. 2004. Disaster and Emergency Assistance Policy. Manila. 27 ADB 2018. Country Partnership Strategy: Philippines, 2018–2023. Manila. 28 ADB initially planned the concept as a sector project, but shifted to an EAL modality when Typhoon Yolanda hit.

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post-disaster needs and facilitate the coordination of assistance without duplicating the work of other development partners. Coordination through a well-established management system and delivery mechanism strengthened the relevance of the project. 50. The project design continues to be relevant after completion, especially in a country beset by increasing and intensifying disasters.29 The design also continues to be relevant to ADB’s Strategy 2030 in terms of addressing remaining poverty, reducing inequalities, strengthening climate change and disaster resilience, and promoting gender equality.30 The project yielded many lessons on how governments and communities can respond to and be better prepared for emergencies. Future and ongoing projects will benefit from the lessons of this project.31 B. Effectiveness 51. The project is rated effective based on the achievement of its outcome and outputs. The outcome (improved access to services and infrastructure for communities in affected provinces) was directly achieved through reconstruction and livelihood activities under output 1. Output 2 supported project implementation by continuously building the capacity of the executing agency and communities. Output 3 supported systems to monitor and evaluate results of the project. Regarding the outcome target of increased confidence among households to participate in community activities, results of the household survey showed that 94.2% of respondents reported having the confidence to participate in community development activities. 32 Regarding the outcome target on increasing marginalized groups’ participation in barangay assemblies, 74% of female-headed households and 75% of indigenous households surveyed claimed to have participated in barangay assemblies—substantially exceeding the 45% target. The determination of the results of the outcome indicator on increased access to, and utilization of basic services and infrastructure is ongoing.33 Meanwhile, 3,681,644 are directly benefiting from completed subprojects, surpassing the target of 900,000 households. 52. The project achieved 10 of the 12 output targets. Completion of a gender study was achieved with delay in December 2018. The target for completing an effectiveness study was incomplete at project closing but is ongoing under separate funding and will be completed by end-2020. One indicator—implementing 150 livelihood support subprojects under the additional financing—was not fully achieved because of time constraints, fund-release delays, and capacity constraints (only 118 livelihood support subprojects were prioritized and financed). The DMF (Appendix 1) compares actual project achievements against planned output and outcome targets. 53. The safeguard framework, plans, and monitoring reports were adequate and were disclosed and implemented on time. The project was categorized as gender equity, and all 10 GAP targets were achieved, while 95% of GAP activities were implemented (para. 33). The GAP implementation matrix is in Appendix 6.

29 Centre for Research on the Epidemiology of Disasters and the United Nations Office for Disaster Risk Reduction.

2016. Poverty and Death: Disaster Mortality 1996–2015. Brussels; S. Hallegatte et al. 2017. Unbreakable: Building the Resilience of the Poor in the Face of Natural Disasters. Climate Change and Development Series. Washington, DC: World Bank; and S. Hallegatte et al. 2016. Shock Waves: Managing the Impacts of Climate Change on Poverty. Washington, DC: World Bank.

30 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila.

31 A DSWD project in response to the eruption of Taal Volcano in early 2020 drew on lessons from the project. 32 Data from the First Round Outcome Survey results only. 33 The effectiveness study is ongoing with government funding. The project impact measurement is due by end-2020.

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C. Efficiency 54. The project is rated efficient. The economic internal rate of return (EIRR) was not estimated at appraisal.34 As a proxy assessment, a consulting firm calculated the EIRR in 2016 based on a set of KALAHI-CIDSS subprojects implemented from 2014 to 2015 and funded by the DSWD, World Bank, and Millennium Challenge Corporation.35 The EIRR and benefit–cost ratio (BCR) were computed for 100 randomly selected subprojects of the most common subproject types.36 The EIRR was above 12% (ADB’s benchmark) for all categories except day-care centers (8.1%), ranging from 15.1% to 3.7%. Appendix 10 summarizes the computed EIRR, net present value, and BCR estimates for the subproject types evaluated.

55. To improve process efficiency in addressing the emergency, the DSWD introduced a redesigned DROM that shortened the process of fund disbursement. The subproject cycle was projected at 12 to 15 months under the DROM; however, in many areas they cycle ran longer than 15 months. Innovations in process efficiency, such as decentralizing approvals and deployment of an electronic request for fund release, addressed the anticipated surge of transactions. 56. The project experienced delays because of a lack of local suppliers (para. 32), challenges in hiring competent staff in the locality (para. 27), funding release delays (para. 19), difficulty finding suitable locations for subprojects, and stretched community capacity. Subprojects under the additional financing faced procedural and funding approval delays within the TYMTF, resulting in a shorter period for rebuilding. Delays in securing clearances from the TYMTF and national agencies before fund transfers to communities exacerbated the issue. D. Sustainability 57. The project is assessed likely sustainable. Each subproject was required to have operation and maintenance (O&M) arrangements in place before receiving funding. The O&M arrangements differed by subproject type (e.g. water systems were funded by user fees and managed by water associations, roads were financed by LGU resources, and day-care centers were maintained through user fees). The project ensured sustainability through the formation and accreditation of relevant local civil society organizations as O&M groups—e.g., parent–teacher associations for school buildings and community enterprise groups for post-harvest facilities. Of the 12,797 subprojects evaluated, 88% (11,313) underwent sustainability evaluation tests (SETs) examining their physical and technical status, as well as their organizational effectiveness and the effectiveness of the designated O&M groups in financially managing subprojects. Of these subprojects, 11,163 (98%) received a satisfactory rating or higher. No adverse impacts on the environment were reported. Social acceptability and satisfaction were at 90% based on the Technical Assessment. The DSWD continued to provide training for financially sensitive subprojects even after project closing. 58. Climate change and other disasters disproportionately impact the poor in the Philippines (footnote 27). A major contribution of the project in this area was increasing poor communities’ awareness of these risks. Communities increasingly prioritized subproject technical design in “climate-proofing” and improved in SET quality assurance review performance.

34 This is typical of CDD projects, as subprojects are not ex-ante identified. 35 World Bank. 2016. Technical Assessment and Economic Analysis for the KALAHI–CIDSS National Community-

Driven Development Project, Philippines. Manila. The subprojects analyzed in this report are similar to those funded by ADB with exception of livelihood subprojects, which were supported under the additional financing.

36 A discount rate of 10% was used to compute the BCR.

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E. Development Impact 59. The project’s development impact is rated satisfactory. It is too early to measure the project’s impact against the DMF impact statement; however, project reports and surveys indicate that people’s lives have improved through increased access to services, involvement in governance, and social capital.37 The project provided immediate reconstruction support, building back better, to address the longer-term development objective of improving resilience against future natural hazards. The project contributed to the strategic agenda of inclusive economic growth, targeting the poorest and most affected areas; and to environmental sustainability by ensuring subprojects used climate-resilient designs and complied with environmental standards.38

60. The project contributed to achievements in ADB’s results framework through education, road access, water supply, and sanitation. A total of 3,689 kilometers of roads and 1,573 kilometers of footpaths were built and repaired. The project benefited 493,100 students by building and repairing classrooms damaged by the typhoon. Almost half (49.5%) of the students were female. Likewise, the construction of 744 water systems benefitted 152,232 households. The project improved sanitation facilities for 17,000 households. The project also supported improved governance capacity and gender mainstreaming. F. Performance of the Borrower and the Executing Agency 61. The performance of the borrower and executing agency was satisfactory. The government exhibited a high level of ownership of the project from design through implementation. The government made counterpart funds available, despite initial delays. All but one of the covenants were complied with (para. 42). The project generally complied with applicable environment, health, and safety laws and regulations of the Philippines; the environmental safeguards; the EARF; and all requirements indicated in IEEs, ESMPs, and indigenous peoples plans (paras. 36–41). Procurement and disbursements went smoothly, despite the large number of transactions. There were unauthorized withdrawals from community accounts that needed to be returned to ADB, but the DSWD responded promptly and handled the issue effectively (para. 43). G. Performance of the Asian Development Bank 62. ADB’s performance in project design, supervision, and completion is satisfactory. From June 2014 to June 2018, ADB fielded six review missions, including a midterm review mission (March 2016), plus final (June 2018) and project completion (January 2020) review missions. ADB provided adequate support throughout project design and implementation, with sufficient flexibility to adjust to the emergency nature of the project. During review missions, ADB provided advice on technical issues, procurement procedures, quality assurance, and loan administration. It responded favorably to government requests to reallocate loan proceeds and amend loan and grant covenants to reflect realities on the ground. 63. ADB provided adequate support through technical assistance to enhance the capacities of the KC-NCDDP staff, including the establishment of a learning and development framework and development of learning modules.39 The transition between ADB project officers was smooth.

37 Government of the Philippines, DSWD. 2015. KALAHI-CIDSS Tracer Study, November 2015. Manila. 38 ADB. 2008. Strategy 2020: Working for an Asia and Pacific free of Poverty. Manila. 39 ADB. 2012. Technical Assistance to the Philippines for Enhancing Social Protection through Community-Driven

Development Approach. Manila; and ADB. 2013. Technical Assistance to the Philippines for Enhancing Capacities for the KALAHI–CIDSS National Community-Driven Development Project. Manila.

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More ADB oversight could have improved implementation of the additional financing activities. H. Overall Assessment 64. The project is rated successful, with high marks for relevance, effectiveness, efficiency, and sustainability.

Overall Ratings

Source: Asian Development Bank.

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons 65. The project’s success is partly due to timely and adequate action in addressing challenges, both by ADB and the DSWD. The main problems that affected the project were: (i) procurement delays because of a lack of contractors in the target areas; (ii) procedural and reporting lapses in safeguards (indigenous peoples and environment) during the initial stages; and (iii) slow start-up and capacity constraints because of the large number of transactions and the complex nature of livelihood and enterprise building within a CDD operation (paras. 8, 10, 27, 32, and 54). Key lessons are highlighted below to inform future projects: 66. Supervision, dialogue, and coordination is crucial. Loan effectiveness came 6 months after approval with 3 months for the government to sign the loan agreement and another 2.5 months to issue the legal opinion. This delay could have been avoided through more effective dialogue between ADB and the government. Close supervision by ADB led to timely interventions in at least two instances: (i) adjusting the level of the advance account to support a surge in cash requirements (para. 22); and (ii) acting immediately on procurement delays by batching procurement and informing potential suppliers through a workshop (paras. 32, 51, and 61).

67. Community-driven development approaches are effective but require intensive capacity building support. CDD works well in delivering fast support to communities affected by disasters. The project deployed rapidly, reaching 10,572 barangays and about 3,668,000 households soon after approval. Two-thirds of subprojects (10,011) received financing in the same year of loan effectiveness. However, CDD operations require investment in the capacity of communities and program staff.40 In a disaster setting, this can be challenging (paras. 8 and 27).

68. Attention to risk assessment and management. Common issues in EALs are: (i) lack of and higher costs of supplies and service providers; (ii) limited staff capacity and availability; (iii) heightened land acquisition issues; and (iv) financial institutions and fund transfer conduits need

40 International experience indicates an optimal initial ratio of funds spent on subproject grants to capacity support and

monitoring of 50:50. The optimal ratio in succeeding years of the project shifts to 75:25 in favor of subproject grants.

Criteria Rating Relevance Highly Relevant Effectiveness Effective Efficiency Efficient Sustainability Likely Sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of Asian Development Bank Satisfactory

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recovery time and support. EALs will benefit from the early preparation of an extensive risk assessment to develop a risk mitigation road map in advance of implementation. To mitigate the risk of fraudulent transactions, the DSWD emphasized the specific fiduciary duties and responsibilities of the community project staff in the subproject implementation agreements and memoranda of agreement. The DSWD also included timely liquidation of fund transfers in performance evaluations to detect any incident of fraud.

69. Different approach for livelihood and enterprise community-driven development. Livelihood subprojects often have multiple components (e.g., skills, market linkages, organizational development, and financial literacy) compared with infrastructure subprojects. Communities require more time to prepare design proposals and be trained to comply with subproject fund flow and financial requirements. The added layer of complexity often requires the involvement of other service providers and technical agencies (paras. 10 and 27). 70. Gender best practices. KC-NCDDP engineering staff conducted a pre-construction-phase workshop where the workplans were clearly laid out and each job position was explained in detail. It was during this workshop that women realized that they could contribute meaningfully and were capable of taking on tasks beyond gender stereotypes. Presenting the civil works program to the community helped drive the recruitment of women into construction work. 71. Getting the money to beneficiaries quickly. Though the CDD design of this project was appropriate for emergency operations, the government approval process delayed loan effectiveness. It is important that ADB coordinates closely with the government to ensure actions for effectiveness (including special authorities to negotiate and clearances from monetary board authorities) are adequately and quickly addressed.41 B. Recommendations 72. General. ADB should continue to engage with developing member countries susceptible to increasing climate and disaster risks by: (i) building capacities and raising community awareness to address these risks; (ii) preparing community approaches to respond to disasters and climate-induced emergencies, ensuring women’s full participation; and (iii) integrating health security resilience and disaster risk considerations in future project designs. 73. Further action. The DSWD and ADB should ensure the remaining activity (the outcome survey) is completed. The findings from the report should be reviewed and shared within the social development thematic group to provide useful lessons for future CDD projects. The results are expected to be finalized by March 2021. 74. Future monitoring. The DSWD needs to closely monitor the status of the 510 subprojects that were built and completed with modifications from the original specifications and costs, and ensure that LGUs conduct sustainability evaluations and provide support to promote the sustainability of these subprojects (para. 11, footnote 14). 75. Timing of the program performance evaluation report. The report should be prepared in the second half of 2021. Data on poverty will have been updated by then, allowing for better measurement of the project impact and a more precise and comprehensive assessment of the long-term impact and sustainability of the project.

41 This lesson has been taken on by the Philippines government during the coronavirus disease pandemic response

with the issuance of a blanket special presidential authority approval from DOF, which has increased efficiency.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Indicators with

Targets and Baseline

Revisions to the

Indicator Project

Achievements Remarks Impact Improved resiliency of poor communities to natural hazards

By end of 2020: Poverty incidence in target areas recovers to levels before Typhoon Yolanda (baseline: average poverty incidence of 37.3% in Yolanda, using small area estimates for 2009)

Unchanged Not yet due. However, the recent poverty report studya indicates that poverty incidence has declined to 21%.

Outcome Improved access to services and infrastructure for communities in affected provinces and their participation in more inclusive local disaster risk reduction and management planning, budgeting, and implementation

35% of HHs in covered municipalities reporting increased confidence to participate in community development by 2017

Unchanged 94.2% Achieved. First round outcome survey shows that 94.2% of HH respondents claimed having the confidence to participate in community development activities.b There is a 3% overall improvement in people’s confidence to participate as well as a 7.3% increase in participation in governance from baseline.

Access to and utilization of basic services and infrastructure such as roads, education, health centers, and water in covered municipalities increased by 10% by 2017

Unchanged 5% decrease in time spent

To be determined. The project has contributed to the decrease in time spent in accessing key services by 0.7 minutes from the baseline of 12.9 minutes.b Based on the first round of the ongoing outcome survey, the project has contributed to an overall reduction by 20% (4 minutes) in time spent in accessing key services.b The costs spent in accessing services decreased, although are not significant in the following subprojects: Barangay Health Center, Private Health Clinic and Municipality/Poblacion. The achievement of this indicator will be determined in the effectiveness study, which is ongoing and expected to be completed by end-2020.

45% of members from marginalized groups (IP and women) in covered municipalities attending regular barangay (village) assemblies by

Unchanged 74% (Women) 75% (IP HHs)

Achieved. Of the total number of female-headed HHs surveyed, 74% responded that they have participated in barangay assemblies in the past 12 months. 75% of the IP HHs

Appendix 1 17

Design Summary

Performance Indicators with

Targets and Baseline

Revisions to the

Indicator Project

Achievements Remarks 2017 reported the same, where

majority are from Luzon Island (80%).

900,000 HHs benefited by 2017

Unchanged 3,681,644 HHs Achieved. 3,681,644 HHs are directly benefiting from 15,482 completed community subprojects.

Output 85% of completed subprojects meet basic financial standards based on finance and administration sub-manual by 2017 (baseline: 0% in 2013)

Unchanged 100% Achieved. All completed subprojects met basic financial standards in accordance to the KC-NCDDP Finance and Management Sub-manual.

CDD subprojects selected, implemented, and completed

85% of subprojects in covered municipalities completed in accordance with technical plans, schedule, and budget by 2017 (baseline: 0% in 2013)

Unchanged 87.33% Achieved. Out of the 15,541 ADB-funded subprojects that were planned to be completed within 180 days, 70% (10,878) were completed within schedule; 96% (14,972) out of the 15,541 subprojects were completed in accordance with technical plans , and 96% of the subprojects were within budget. Weighted average is 87.3%.

85% of completed subprojects in covered municipalities have satisfactory or better sustainability evaluation ratings by 2017 (baseline: 0% in 2013)

Unchanged 98% Achieved. 11,1163 (98%) out of the 11,313 eligible subprojects that underwent sustainability evaluation rated satisfactory or better.

20%–30% of the paid jobs created by the project are held by women by 2017 (baseline: 3% for skilled and 5% for unskilled in 2013)

Unchanged 21% Achieved.76,774 women have been engaged in paid labor during subproject implementation, comprising 21% of the total 371,341 workers.

150 livelihood and economic support subprojects implemented and completed by 2017

Additional from the additional financing

113 Partially achieved. A total of 118 livelihood subprojects have been funded, of which 113 have been completed.

Institutional and organizational capacity strengthened

85% of covered municipalities with increased membership of people’s and CSOs in local development councils and special bodies by 2017

Unchanged 100% Achieved. All 800 enrolled municipalities have MOA with the DSWD that call to expand the membership of CSOs in Municipal Development Councils

At least 10 community volunteers per village trained in CDD by (including livelihood subproject preparation) 2017, of which 50% are women

With revisions to incorporate additional financing

546,620 in 10,572 villages (average of 29 CVs per village) (61% women)

Achieved. 546,620 CVs have been mobilized and been provided various trainings, of which 334,538 (61%) are women.

18 Appendix 1

Design Summary

Performance Indicators with

Targets and Baseline

Revisions to the

Indicator Project

Achievements Remarks 50% of the leadership positions in community volunteer committees held by women by 2017 (baseline: 35% in 2012)

Unchanged 60% Achieved. 112,158 (60%) out of the 188,476-committee chairpersonships are held by women.

Program Management and M&E Systems enhanced

System for community fund request at national and regional levels fully operational by 2014

Unchanged Completed Achieved. E-RFR system installed and fully operational in all regions.

At least one study regarding effectiveness and impacts completed, including a review of gender equality dimension and livelihood gains, by 2017

With revisions

On going to be completed by March 2021

On-going. The study on effectiveness and impacts will be part of the Outcome Survey. The firm to conduct outcome survey is now on board and has submitted an inception report as a first deliverable. Additional study on livelihood gains is included in the ADB thematic studies.

Newly targeted municipalities generate sex-disaggregated data by 2017

Unchanged 273 Achieved. A total of 273 new KC-NCDDP municipalities (Yolanda affected) are generating sex-disaggregated data using the CDD forms and database that require sex-disaggregation.

Gender action plan implemented by 2017

Unchanged Completed with delay

Achieved with delay. The study on review of gender equality was completed in December 2018, after project closing. An assessment of the gender mainstreaming initiatives in KC-NCDDP was carried out as part of ADB TA to the DSWD.

ADB = Asian Development Bank, CDD = community-driven development, CSO = civil society organization, CV= community volunteer, DSWD =Department of Social Welfare and Development, E-RFR = electronic request for fund release, HH = household, IP = indigenous peoples, KC-NCDDP = Kapit-bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social Services National Community-Driven Development Project, MOA = memorandum of agreement, M&E = monitoring and evaluation, TA = technical assistance, a Philippine Statistics Authority. 2018. First Semester 2018. Manila. b Data from first round outcome survey.

Source: Asian Development Bank.

Appendix 2 19

SUMMARY TABLE OF SUBPROJECTS

SP Category SP Type

Overall Total No. of

SPs % of Overall

Total

Overall Total No. of HH

Beneficiaries Basic Access Infrastructure Sub-Projects

Bridge (may include box culvert/drainage as a component of bridge) 398 3% 84,897

Footpath/Foot Trail/Access Trail (may include box culvert/drainage as a component for Footpath)

1,252 8% 195,301

Road (may include box culvert/drainage as a component for road) 4,181 27% 1,035,951

Basic Social Services Barangay Hall 169 1% 37,308

Church/Chapel/Congregation Building 163 1% 28,693

Day Care Center 722 5% 142,507

Electrification/Lighting 1,229 8% 320,344

Health Station 547 4% 135,793

School Building 1,063 7% 236,521

Tribal Housing/Core Shelter 12 0% 382

Water System 744 5% 152,232

Community Production, Economic Support and Common Service Facilities

Boat 11 0% 1,818

Community Center/Multi-Purpose Building 1,288 8% 407,311

Livelihood Equipment/Building/Center (sqm. for buildings/center and unit for equipment)

70 0% 27,261

Livelihood Training 25 0% 3,557

Miniport/Wharf/Fishlanding 122 1% 18,531

Multi-Purpose Vehicle (Land) 13 0% 7,174

Pre & Post Harvest Facilities 156 1% 32,505

Public Market 24 0% 11,893

Small Scale Irrigation 29 0% 3,170

Training & Learning Center/Facility 40 0% 10,114

Artificial Coral Reef/Marine Sanctuary (hectares for area and unit for number of provision)

9 0% 5,317

20 Appendix 2

SP Category SP Type

Overall Total No. of

SPs % of Overall

Total

Overall Total No. of HH

Beneficiaries Environmental Protection & Conservation Sub-Projects

Flood Control/River Control (including Box Culvert/Drainage/Canal intended to reduce or prevent flooding)

2,118 14% 531,589

Riprap Wall/Slope Protection/Erosion Control 277 2% 52,887

Sanitary Toilets 161 1% 14,859

Seawall 351 2% 70,031

Solid Waste Management Facilities 7 0% 2,774

Spillway/Overflow Bridge 71 0% 16,203

Others Disaster Response/Rescue Equipment /Tools 129 1% 44,075

Eco-tourism 1 0% 108

Light House 1 0% 480

Other/For classification (sqm. for buildings, unit for equipment, workers for Cash for works)

28 0% 6,427

Perimeter Fence 16 0% 6,283

Railings 9 0% 2,027

Recreation/Playground/Theater 2 0% 354

Skills Training and Capability Building Sub-Projects

Capability Building/Training/Feasibility Studies 44 0% 34,966

Grand Total 15,482 100% 3,681,643

HH = household, SP = subproject, sqm = square meter. Source: Asian Development Bank.

Appendix 3 21

PROJECT COST AT APPRAISAL AND ACTUAL ($ million)

Appraisal Actual

Item L3100 a

Additional Financing (G0472) b Total L3100

Additional Financing (G0472) Total

A. Base Cost c 1. Priority community subprojects completed and community

capacity enhanced 403.80 4.62 408.42 316.78 3.26 320.04

2. Institutional and organizational capacity strengthened 183.00 0.14 183.14 158.41 0.03 158.443. Program management and monitoring and evaluation

enhanced 51.50 0.71 52.21 36.37 0.41 36.38

Subtotal (A) 638.30 5.47 643.77 511.56 3.30 514.86B. Contingencies c 1.20 - 1.20 0.00 0.00 0.00C. Financing Charges During Implementation d 24.30 - 24.30 30.72 0.00 30.72

Total (A+B+C) 663.80 5.47 669.27 542.28 3.70 545.98a Refers to the original loan amount and includes taxes and duties of $26 million included in the base cost and financed from the government and Asian Development

Bank loan resources. Of this amount, the Asian Development Bank will finance an estimated $21 million. b In October 2015 prices. c Price and physical contingencies are computed at 5% for training. These do not include output 1 contingencies. d Includes interest and commitment charges. Source: Asian Development Bank estimates.

22 Appendix 4

PROJECT COST BY FINANCIER

Table A4.1a: L3100: Project Cost at Appraisal by Financier ($ ‘000)

ADB Government Total Cost

Category Amount % Of Cost Category Amount % Of Cost Category

Amount A. Grants

1. Investment 310,076 100.00% 0 0.00% 310,076 2. Planning 48,505 51.77% 45,193 48.23% 93,698

Subtotal 358,581 88.81% 45,193 11.19% 403,774B. Equipment, Vehicle and Furniture 1,073 79.84% 271 20.16% 1,344

C. Advocacy and IEC Materials 156 21.11% 583 78.89% 739D. Training, Workshops and Meetings 1. ACT 3,829 35.60% 6,926 64.40% 10,755

2. LGU/NGA Implementers 5,274 43.81% 6,765 56.19% 12,039

3. NPMO/RPMO 310 30.57% 704 69.43% 1,014 Subtotal 9,413 39.54% 14,395 60.46% 23,808

E. Consulting Services

1. Capacity Development 1,00000 100.00% 0 0.00% 1,000

2. Social Marketing (Advocacy) 100 100.00% 0 0.00% 100 3. Studies 100 100.00% 0 0.00% 100 Subtotal 1,200 100.00% 0 0.00% 1,200

F. Monitoring and Evaluation 1,160 100.00% 10,344 100.00% 11,504G. Recurrent Costs 0 0.00% 195,852 100.00% 195,852

Total Base Cost 371,583 58.22% 266,638 41.78% 638,221H. Unallocated - Contingencies 521 42.02% 719 57.98% 1,240

I. Finance Charges During Project Implementation 1. Interest During Implementation 0 0.00% 23,818 100.00% 23,818 2. Commitment Charges 0 0.00% 558 100.00% 558

Subtotal 0 0.00% 24,376 100.00% 24,376 Total Project Cost 372,104 291,734 663,838 % Total Project Cost 56.05% 43.95%

ACT = Area Coordinating Teams, ADB = Asian Development Bank, IEC = information, education and communication, LGU = local government unit, NGA = national government agency, NPMO = National Program Management Office, RPMO = Regional Program Management Office. Source: Asian Development Bank.

Appendix 4 23

Table A4.1b: G0472: Project Cost at Appraisal by Financier ($ ‘000)

TYMTF

Government

Total Cost

Category Amount % Of Cost Category

Amount

% Of Cost Category

Amount

A. Community Grants 1. Investment 4,295 100% 0 0% 4,295 2. Planning 323 100% 0 0% 323

Subtotal 4,618 100% 0 0% 4,618 B. Equipment, Vehicle and Furniture 20 100% 0 0% 20

C. Advocacy and IEC Materials 23 100% 0 0% 23 D. Training, Workshops and Meetings 120 100% 0 0% 120 E. Monitoring and Evaluation 130 100% 0 0% 130

F. Recurrent Costs 50 9% 473 92% 523 G. Unallocated 39 100% 0 0 39

Total Base Cost 5,000 91% 473 9% 5,473

Total Project Cost 5,000 473 5,473

% Total Project Cost 91% 9% 100%

IEC = information, education and communication, TYMTF = Typhoon Yolanda Multi-Donor Trust Fund. a Includes taxes and duties of $_, which are included in the base cost and to be financed from TYMTF grant sources on TYMTF expenditure

items and from government for incremental operating costs. b Administered by the Asian Development Bank. Source: Asian Development Bank.

24 Appendix 4

Table A4.2a: L3100: Project Cost at Completion by Financier ($ ‘000)

ADB

Government

Total Cost

Category Amount % Of Cost Category

Amount

% Of Cost Category

Amount

A. Grants 1. Investment 293,469 100% 0 0% 293,469 2. Planning 21,283 91% 2,026 9% 23,309

Subtotal 314,752 99% 2,026 1% 316,778B. Equipment, Vehicle and Furniture 913 88% 122 12% 1034

C. Advocacy and IEC Materials 65 13% 432 87% 497D. Training, Workshops and Meetings 1. ACT 4,601 21% 16,920 79% 21,521

2. LGU/NGA Implementers 3,746 19% 16,256 81% 20,002

3. NPMO/RPMO 352 4% 7,782 96% 8,134 Subtotal 8,699 18% 40,958 82% 49,657

E. Consulting Services

1. Capacity Development 6767 100% 4,518 0% 4,518

2. Social Marketing (Advocacy) 0 0% 0 0% 0 3. Studies 38 100% 0 0% 38

Subtotal 106 2% 4,518 98% 4,623F. Monitoring and Evaluation 345 2% 13,989 98% 14,334

G. Recurrent Costs 0 0% 124,634 100% 124,634 Total Base Cost 324,880 64% 186,679 36% 511,557

H. Unallocated - Contingencies 0 0% 0 0% 0

I. Finance Charges During Project Implementation

1. Interest During Implementation 0 0% 29,662 100% 29,662 2. Commitment Charges 0 0% 1,056 100% 1,056

Subtotal 0 0% 30,718 100% 30,718

Total Project Cost 324,880 217,397 542,277

% Total Project Cost 60% 40% 100%

ACT = Area Coordinating Teams, ADB = Asian Development Bank, IEC = information, education and communication, LGU = local government unit, NGA = national government agency, NPMO = National Program Management Office, RPMO = Regional Program Management Office. Source: Asian Development Bank.

Appendix 4 25

Table A4.2b: G0472: Project Cost at Completion by Financier ($ ‘000)

TYMTF

Government

Total Cost

Category Amount % Of Cost Category

Amount

% Of Cost Category

Amount

A. Grants 1. Investment 3,039 100% 0 0% 3,039 2. Planning 101 100% 0 0% 101

Subtotal 3,140 100% 0 0% 3,140 B. Equipment, Vehicle and Furniture 0 0% 0 0% 0

C. Advocacy and IEC Materials 0 0% 0 0% 0 D. Training, Workshops and Meetings 28 100% 0 0% 28 E. Monitoring and Evaluation 9 100% 0 0% 9

F. Recurrent Costs 0 0% 404 100% 404 G. Unallocated 0 0% 0 0% 0

Total Base Cost 3,298 89% 404 11% 3,702

Total Project Cost 3,298 404 3,702

% Total Project Cost 89% 11% 100%

IEC = information, education and communication, TYMTF = Typhoon Yolanda Multi-Donor Trust Fund. Source. Asian Development Bank.

26 Appendix 5

Figure A5.1a: Projection and Cumulative Disbursement of ADB Loan Proceeds

($ million)

Source: Asian Development Bank.

DISBURSEMENT OF ADB LOAN AND GRANT PROCEEDS

Table A5.1a: Annual and Cumulative Disbursement of ADB Loan Proceeds ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

($ million) % of Total Amount

($ million) % of Total 2014 37.50 11.50 37.50 11.50 2015 182.22 56.10 219.72 67.60 2016 9.15 2.80 228.87 70.40 2017 96.01 29.60 324.88 100.00 2018 0.00 0.00 324.88 100.00 Total 324.88 100.00 324.88 100.00 Source: Asian Development Bank.

Table A5.1b: Annual and Cumulative Disbursement of ADB Grant Proceeds ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

($ million) % of Total Amount

($ million) % of Total 2016 3.13 94.90 3.13 94.90 2017 1.41 42.70 4.54 137.60 2018 (1.24) (37.60) 3.30 100.00 Total 3.30 100.00 Source: Asian Development Bank.

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2014 2015 2016 2017 2018

Projected Actual

Appendix 5 27

Figure A5.1b: Projection and Cumulative Disbursement of ADB Grant ($ million)

Source: Asian Development Bank.

Table A5.2: List of Contract Awards and Disbursement Projections Version Date Comment

1 10 June 2014 Project Effectiveness 2 28 November 2014 PPFD-led unlocking 3 31 December 2014 Actualized (annual) 4 31 December 2015 Actualized (annual) 5 26 April 2016 PPFD/SERD-led unlocking (eOps clean-up) 6 31 December 2016 Actualized (annual) 7 31 December 2017 Actualized (annual) 8 31 December 2018 Actualized (annual) 9 27 August 2019 Adjusted (Project Closing)

eOPS = eOperations, PPFD = Procurement, Portfolio, and Financial Management Department, SERD =

Southeast Asia Department. Source: Asian Development Bank.

0

1

2

3

4

5

6

2016 2017 2018

Projected Actual

28 Appendix 6

SUMMARY OF GENDER EQUALITY RESULTS AND ACHIEVEMENTS

I. PROJECT DESCRIPTION 1. Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services-National Community Driven Development Project (KALAHI-CIDSS-NCDDP, or KC-NCDDP) contributes to the overall goal of reducing poverty in the poorest municipalities of the Philippines and in the areas affected by Typhoon Yolanda. Specifically, it aims to empower target communities to achieve improved access to basic services and to participate in more inclusive local planning, budgeting, implementation and disaster risk reduction and management. It uses the community-driven development approach, an inclusive development process where local communities take control in the planning, implementing, and resource investments. Operationally, local communities actively participate in the planning, implementing and monitoring of projects. Through the enabling processes and activities, local communities and citizens identify local challenges, prioritize solutions and assist local government units in the delivery of quality and comprehensive basic services. From its inception in 2014, to its completion in 30 June 2018, KC-NCDDP enabled community members in 18,781 barangays in 800 municipalities to prioritize 26,247 subprojects, and completing 23,912, which is expected to benefit 6.2 million households.

II. GENDER ANALYSIS AND PROJECT DESIGN FEATURES A. Gender Issues and Gender Action Plan Features 2. Gender was an integral part of KC-NCDDP. The project ensured equal opportunities and benefits for both men and women in its processes. Women’s inclusion was one of the project’s strategies to address the needs of the poor and most vulnerable sectors of communities. The gender mainstreaming initiative of KC-NCDDP is consistent with the 2009 Magna Carta of Women (Republic Act 9710), which outlines the Government of the Philippines’ strategy to mainstream gender in all its programs, projects, and activities. Similarly, it is guided by the Department of Social Welfare and Development (DSWD)’s policies and guidelines on gender and convergence, and the Asian Development Bank (ADB)’s gender policy. 3. During project design, it was recognized that women are often disproportionately affected by damage and disruption to services and community infrastructure in the aftermath of disasters because of their familial responsibilities and heightened risk of exposure to violence. In the aftermath of an emergency, a sense of urgency for recovery efforts might lead to shortcuts in the consultative process, where women’s needs and involvement might be sidelined. The key gender issues that the project sought to address included: (i) limited women’s participation and leadership in barangay and municipal decision-making structures and planning processes related to local infrastructure investments; (ii) women’s limited access to training and employment in civil works and in the operation and maintenance of completed infrastructure; and (iii) the need for simplified and harmonized technical guidance notes on gender mainstreaming, particularly for social investigation and subproject assessment, and additional training for area coordinators and community facilitators on social and gender analysis tools and the effective use of findings in subsequent planning. 4. The gender action plan (GAP) was thus formulated to support women’s participation in local decision-making processes and ensure that local priority infrastructure investments in the aftermath of typhoon Yolanda serve women’s needs and priorities. The project gender action plan ensured that (i) the criteria for prioritizing community infrastructure to be rehabilitated or developed will include an analysis of the needs and benefits of men and women; (ii) separate

Appendix 6 29

meetings at locations and times convenient for women are held with marginalized households—including those headed by women, where needed—to discuss subproject proposals prior to barangay assemblies; (iii) of the paid jobs created by the project, 20% to 30% go to women by 2017; (iv) the operation and maintenance plan provides at 20% to 30% of paid work to women; (v) of the participants in all community-based capacity development programs under the project, 50% are women; (vi) links made with existing and/or functioning child-friendly spaces or other protective spaces or establish community crèches for child care minding, so that women can take advantage of employment and training opportunities; (vii) of the leadership positions in the various volunteer committees, including barangay representation teams, 50% are provided to women by 2017; (viii) gender mainstreaming responsibilities are included in the terms of references and performance targets of project management officers; (ix) all project staff undergo gender training, including a section on gender and disasters; and (x) gender indicators are integrated in the KC-NCDDP monitoring and evaluation framework. B. Overall Assessment of Gender-Related Results/Achievements 5. KC-NCDDP is a project categorized as GEN (gender equity theme), as per ADB policy on gender and development. The project includes a GAP to maximize benefits to local populations including women, poor and vulnerable people in the project areas. As of project completion, the implementation of the GAP is successful, with 100% of its 10 targets achieved, and 95% of its 21 activities completed. 6. The Gender Mainstreaming in the KALAHI-CIDSS National Community Development Program: An Assessment (Gender Assessment)1 was published in December 2018, fulfilling the final GAP deliverable activity of developing one study on the effectiveness and impacts, including a review of gender equality dimensions of the project. The gender assessment examined the KC-NCDDP’s initiatives in gender mainstreaming, particularly the impact on women who served as community volunteers and project beneficiaries. The assessment was undertaken in August 2018 through focus group discussions, review of existing documents, and analysis of available data. The study includes five stories of women whose lives were transformed after their engagement in the KC-NCDDP. 7. In the course of project implementation, the GAP was amended upon request of the executing agency to streamline the GAP by re-categorizing the actions and targets for better monitoring and alignment with the design and monitoring framework (DMF) outputs. This includes reflecting the four DMF gender-related indicators in the revised GAP (See GAP Gender Action Numbers 7, 8.2, 11.3 and 11.4 in the GAP update matrix in Annex 1). The executing agency also proposed revising the following:

(i) Gender Action No. 3.2–3.3: Ensure linkage with existing/functioning child friendly spaces/or other protective spaces or establish community crèches for childcare so that women can take advantage of employment and training opportunities. There is a need to delete “or establish community creches for childcare” to take into account the common practice of child minding by relatives or neighbors in rural areas.

(ii) Gender Action No. 11: Ensure that periodic KC-NCDDP process evaluations incorporate a review of gender dimensions and recommendations. There is a need

1 ADB. 2018. Gender Mainstreaming in the KALAHI-CIDSS National Community-Driven Development Program: An

Assessment. Manila.

30 Appendix 6

to delete “periodic” since the KC-NCDDP process evaluation currently being prepared is not a periodic exercise. 2

III. GENDER EQUALITY RESULTS

A. Participation, Access to Project Resources, and Practical Benefits

1. Women’s participation in project consultations, volunteer work, and leadership roles

8. Women have been active participants in all project meetings for social preparation and subproject identification in the project communities. Women constituted 60% of all attendees (29,719,929 out of 49,456,317) of barangay assemblies where community problems and needs, and their corresponding proposed solutions are identified. Out of 87,377 participants to the project development, criteria setting, and resource allocation workshops, 54,706 (63%) of these are women, exceeding the GAP target of at least 50%.

Table A6.1: Participation in Workshop-Meetings, sex-disaggregated, as of June 2018

Workshops Conducted Women Men Total % of Women Project Development Workshop

21,421 12,103 33,524 64%

MIBF-Criteria Setting Workshop

12,762 8,701 21,463 59%

MIBF-Participatory Resource Allocation

20,523 11,867 32,390 63%

MIBF = Municipal Inter-Barangay Forum. Source: DSWD KALAHI CIDDS.

9. Women comprised more than a majority of all the community volunteers under the project. Out of the total 546,620 community volunteers, 334,538 are women (61%). From among the indigenous peoples’ communities, there are 23,144 women community volunteers, comprising 59% of the total 39,273 indigenous peoples community volunteers. Among the 104,873 senior citizens community volunteers, 53,496 (51%) were women. Membership from the youth sector is recorded at 62,997, comprising of 21,190 (34%) young men and 41,807 (66%) young women.

Table A6.2: Barangay Sub-Project Management Committee (BSPMC) composition, sex-disaggregated, as of June 2018

BSPMC Community Volunteers Male Female Total % of Women AIT 13,625 39,098 52,723 74% BAC 14,362 32,373 46,735 69% BKR

321 2,230 2,551 87%

MIT 22,556 28,699 51,255 56% PIT 23,928 28,136 52,064 54%

2 Memo dated 25 Oct 2016, Request for Minor Changes in Implementation Arrangements.

Appendix 6 31

BSPMC Community Volunteers Male Female Total % of Women PT 19,251 33,826 53,077 64% Total Community Volunteers

94,043 164,362 258,405 64%

AIT = Audit and Inventory Team, BAC = Bids and Awards Committee, BKR = Bookkeeper, BSPMC = Barangay Sub-Project Management Committee, MIT = Monitoring & Inspectorate Team, PIT = Project Implementation Team, PT = Procurement Team. Source: DSWD KALAHI-CIDDS.

10. The Barangay Sub-Project Management Committee (BSPMC) community volunteers also consisted of mostly women, with 164,362 (64%) women out of the total 358,405 members, dominating all the positions in the BSPMC. Moreover, 60% (113,209 out of 189,872) of community volunteers holding leadership positions (that is head of the committees) are women. 55% of the Barangay Representation Team leaders (11,816 out of 21,559) are women. Of the total 10,044 indigenous peoples leaders, 5,449 or 54% are women from indigenous peoples communities holding chairperson positions in the committees.

11. For the sector of senior citizens, 17,634 committee chairpersons are men (55%) and 14,614 committee chairpersons are women (45%). For the youth sector, 9,102 committee chairpersons are young women leaders (65%) and 4,904 committee chairpersons are young men leaders (35%).

2. Women’s participation in capacity-building activities 12. The project conducted different training activities in 18,781 barangays in 800 municipalities to build the capacities of men and women to be effective implementers of community driven development (CDD). Women community volunteers made up an average of 64% (246,103 out of 379,847) of the participants of all the community-level capacity building activities provided by KC-NCDDP. While these trainings were designed to enable community volunteers to perform their tasks effectively during the course of their engagement in the project, it was also the project’s intent to build their capacities so that they can use the skills they developed even beyond KC-NCDDP.

32 Appendix 6

13. Leadership trainings were also provided to the community volunteers, where 195,885 (63%) women attended out of a total 311,519 participants.

3. Women’s employment in paid jobs under the project 14. The project hired a total of 371,341 skilled and unskilled workers in subproject civil works, of which, 76,774 (21%) are women—2,221 as skilled workers (3% of female workers), and 73,926 as unskilled workers (97%). Among the skilled workers, 872 women were hired as foremen, 76 as electricians, and 107 as masons. Unskilled work that women did included sacking, cleaning, cement mixing, and hauling. Female indigenous peoples laborers constituted 29% of indigenous peoples workers; and female Pantawid laborers, comprised 20% of total Pantawid laborers. These figures exceed the minimum targets set out in the GAP which is 20–30% female hired in paid work under the project and is a laudable project accomplishment considering the baseline of 3% for skilled and 5% for unskilled in 2013.

Table A6.3: Labor Skill Breakdown as of June 2018 Position Female Male Total % Female Carpenter 26 795 821 3% Electrician 76 903 979 8% Foreman 872 10,569 11,441 8% Mason 107 2,670 2,777 4% Plumber 20 433 453 4% Other Skilled 1,032 15,686 16,718 6%

Figure A6.1: Indigenous Peoples and Pantawid Laborers

IP = indigenous peoples. Source: Asian Development Bank.

% 29

% 71

IP Laborers

Female Male

20 %

80 %

Pantawid Laborers

Female Male

Appendix 6 33

Position Female Male Total % Female Laborer and other unskilled

72,561 247,969 320,530 23%

Source: DSWD.

15. The project ensured that women and men were paid equally for work of equal value, abiding by the Department of Labor and Employment-issued regional labor wage rates. The Employment Record Sheet and regular spot checks were done to ensure this was observed. Nevertheless, records show that while 21% of the labor force were women, only 16% of the total labor cost totaling ₱166,365,176.47 were paid to women. This is because of the highly technical and higher paying jobs demanded by the subprojects, like water systems and environmental sub-projects, were dominated by men, as there were very few women trained and qualified for the positions. These highly technical subprojects demand specialized skills. Of the total skilled workers, 6.30% are women, while 22.60% of total unskilled workers are women. 16. Female participation in labor also differed per subproject type. The highest percentage of women was in the construction of basic access infrastructure projects, such as roads, bridges, and footpaths (22%). There were fewer women who participated in the construction of basic social services facilities like school buildings, day care centers, health stations, and water systems (20%). Engineers from the national project management office (PMO) who were interviewed explained that one possible reason is that basic access subprojects require fewer skilled laborers. In contrast, basic social services facilities require more skilled work such as electrical wiring, plumbing, carpentry, and masonry. This automatically disqualifies most women, since many of them have not received training required for these types of work. 17. In addition to the construction work, 551 women were also engaged as project staff, particularly as members of Area Coordinating Teams (ACTs), the foundation of supporting the project communities, and without them, nothing can be accomplished at that level. Women constituted 68% of the total 812 ACT members—60% (114 out of 190) of the Area Coordinators, 72% (173 out of 241) Municipal Financial Analysts (MFA), and 68% (173 out of 241) Community Empowerment Facilitators (CEF). Area Coordinators were paid an average of ₱33,000/month, and MFAs and CEF were paid an average of ₱33,000/month salary.

Table A6.4: KC-NCDDP Staffing, sex-disaggregated, as of June 2018 ACT Women Men Total % of Women AC 114 76 190 60% TF 56 183 239 23% MFA 173 68 241 72% CEF 551 261 812 68%

AC = Area Coordinator, ACT = Area Coordinating Team, CEF = Community Empowerment Facilitator, MFA = Municipal Financial Analyst, TF =Technical Facilitator. Source: DSWD KALAHI-CIDDS

18. However, there were only 23% (56 out of 239) women Technical Facilitators, because these were the Team Engineers, who were expectedly, mostly men. Technical Facilitators were paid an average of ₱26,000/month. While women engineers were also proactively recruited to join the ACT, there were only few candidates, and given the urgency of the work for Yolanda rehabilitation, there was not enough time to recruit more women. Nevertheless, the overall women’s participation in the ACT exceeds the targeted gender balance required in the GAP.

34 Appendix 6

4. Gender-responsive community infrastructure 19. The largest bulk of prioritized subprojects fall under the basic access infrastructure (38%) and basic social service (30%) categories, which include roads, bridges, water system, school buildings, daycare centers, health stations, electrification, and tribal housing subprojects. Disaster risk reduction, preparedness, and mitigation subprojects (22%) were also funded. This includes construction of flood/river controls, spillway, evacuation centers, seawalls, and slope protection and the purchase of disaster response and rescue equipment/tools. 20. Identification and prioritization of these projects were done in participatory community consultations, where majority of the participants were women. These consultations resulted in projects clearly reflective of women’s needs and inputs. Access roads and foot bridges facilitated women’s and children’s access to basic services, including schools, health centers and markets. Flood control projects increased their safety and saved them from worries about their children going to school during the rainy season. Solar streetlights illuminated the streets for the children, women, and men, who have to leave their homes before sunrise and come back at night. These prevented theft of grains from the rice fields on the eve of harvest day. Drainage canals helped prevent dengue and diarrhea. Community health stations were crucial in addressing child and maternal health care, along with common illnesses experienced by the residents in the barangay. Day care centers were built to free women from childcare work and give them time for their other tasks, including engaging in community work. New school buildings replaced muddy floors and termite-filled walls of old or makeshift school buildings. 21. In addition, built-in features of some infrastructure projects were added to specifically respond to gender needs. For instance, the evacuation centers that were constructed through KC-NCDDP have restrooms on opposite sides of the building to mitigate women’s vulnerability to harassment which, studies have shown, significantly increases during times of disaster. Some evacuation centers also have dedicated breastfeeding areas. An example is the evacuation center in Barangay Taboc in Juban, Sorsogon. It has separate washrooms for men and women on either side of the building and a separate breastfeeding area to help ensure the safety and comfort of lactating mothers. In Barangay Poctoy, Torrijos, Marinduque, the first ever male-female segregated public toilet was constructed in the barangay center, close to the barangay hall, evacuation, and day care centers. It is the first ever publicly accessible toilet facility in the barangay that was installed because the women recognized that they were particularly challenged when there is no public restroom available in the area. B. Strategic Changes in Gender Relations

1. Women’s political empowerment as an individual, in the home, and in the community

22. Most of the women community volunteers and beneficiaries of KC-NCDDP are poor, uneducated, and have never worked outside the home prior to their involvement with the project. However, a common and recurrent theme among these women is the sense of personal empowerment resulting from their participation in project activities. To start with, the gender trainings that they have attended as part of the capacity-building program sparked within them the awareness of their inherent dignity as human beings and the fundamental equality between men and women. This itself is a revolutionary idea for many women, especially those from the rural areas where traditional notions about gender roles and relations are entrenched. Understanding this idea is the necessary first step to begin working towards their own empowerment and making it part of their lived reality. As one community volunteer who is a

Appendix 6 35

survivor of domestic violence and who served in various capacities under the project, articulated: “I learned that women deserved to be respected; women should not be abused, and should be treated with respect; women are equal in dignity with men. Women should be allowed to work and are entitled to the same wages as men for equal work.”3 23. The other trainings on the KC-NCDDP processes and practical learnings from their exposure as community volunteers to different tasks, responsibilities, and people further boosted women’s confidence in themselves and their ability to take part in decision-making affecting their lives and their communities. It also allowed them to build a network of friends from among other community volunteers. One single mother community volunteer said: “Being poor, uneducated and a separated woman, I always saw myself as a nobody. I thought I was useless, and people did not need me. Thank you to KC-NCDDP, I learned a lot. Now, I understand the work of an engineer, or an accountant, because I learned all those from KALAHI. I now know that what men can do, women can do, too” (footnote 3). Another woman said: “I gained self-respect. Before I was afraid, because I knew nothing; but because of KALAHI-CIDDS, I have learned a lot and I gained a lot of friends.”4 One woman also said, “I can now speak in public. I never thought I would be able to do that.” Yet another remarked that it was important for her to be able to “go out of the house and attend seminars.”5 24. The others’ lack of faith in the women’s capacities to lead in community projects was also an issue they had to contend with. One woman said that a man challenged her by saying that “he will cut his own hand and bet that women cannot do it.”6 However, it did not take long for the women to show that they can be effective leaders and undertake successful projects in the community. This is apparent in the fact that women occupied majority of the leadership positions in the various BSPMC teams successfully completing a magnitude of subprojects under the project. 25. Eventually, their performance as volunteers and committee leaders in the project earned them the respect and confidence of the community, opening doors for them to other positions of leadership and responsibility within the project (as ACT members) and outside the project. One female community volunteer was discovered to be a good teacher to other community volunteers and was elevated to the position of CEF—a paid project staff position. She went on to serve the community in other capacities and received an award for her work. She was also convinced to run for public office by the village people. 26. At times, KC-NCDDP volunteers and ACT members had to negotiate with local government officials who disagree with the subproject, its delivery or implementation, to ensure that the project is implemented according to process. One village-nominated female BSPMC chair said that because of her assertive personality, which she attributes to her training and involvement in other DSWD programs, she had to stand her ground before a barangay captain who was averse to the project. In the end, she succeeded in bringing him on board and secured his cooperation in the subproject’s implementation. 27. ACT members also took on the role of intercessors between a woman who wanted to get more involved in the project activities, and her husband who did not allow her to join, insisting that

3 DSWD Kalahi-CIDSS NCDDP. Gender Video: Mountain Province. 4 DSWD Kalahi-CIDSS NCDDP. Gender Video: Camarines Sur. 5 DSWD Kalahi-CIDSS NCDDP. Gender Video: Lanao Del Norte. 6 DSWD Kalahi-CIDSS NCDDP. Gender Video: Sarangani.

36 Appendix 6

she stayed at home. One volunteer narrated how she personally had to speak to and negotiate with a man whose wife wanted to attend the trainings. She told him: “Dong, hindi naman ito para sa amin. Para sa pamilya mo iyan (I told him, ‘Sir, this is not for us, but for your family).” When the man continued to express his dissent, saying that his wife was always at trainings and not at home, the volunteer responded, “E wala rin naman siyang ginagawa diyan e. Kung lagi lang kayo andiyan na nagtitinginan, walang mangyayari sa inyo (She is not doing anything at home anyway. If you are just going to stare at each other, nothing will happen in your lives).” Eventually, she managed to convince the man to allow his wife to join the trainings, although she admitted that she was afraid during confrontation because of his anger.7 28. Volunteers take their roles seriously as gender champions, and do not hesitate to go beyond what is required of the project. As de facto community gender focals, women, including those experiencing domestic violence, run to them for help. In one instance, a volunteer was able to send a man to jail for abusing his wife (footnote 7). 29. At the home front, women’s status also improved. A common story among the women is how their husbands were initially resentful of their active participation in project activities. Later on, however, their husbands became more appreciative and supportive, and their children became prouder of them because of what they do for the community. One woman also said that not only did she earn the respect of her husband, but also the respect of his relatives, which was very important for her. 30. Political empowerment is defined simply as the ability to make decisions and to carry out those decisions. Through this project, it is apparent that women have been empowered to make decisions for themselves, their families, and their communities because of the enabling conditions built into the project to carry out those decisions with others.

2. Improved access of women to non-traditional employment 31. Women’s access to non-traditional employment is important, as it provides them with the opportunity for economic empowerment. This is because they may either be engaging in paid work for the first time after devoting all their time in unpaid work at home, or they will be earning a higher income that is usually paid for traditionally male-dominated work. 32. As shown above, this project has been successful in achieving the targets in female employment in non-traditional jobs, particularly in the construction of community subprojects, with 76,774 women hired in both skilled and unskilled work, representing 21% of the total number of workers hired. This is an impressive achievement coming from a baseline of 3% in skilled and 5% in unskilled workers. Women earned a total of ₱166,365,176.47 as laborers during the construction of their subprojects representing a per capita income of ₱2,167. 33. More important than the numbers is the changing attitudes of the women and their communities on how women are perceived in these male-dominated occupations. 34. For many women, getting the opportunity to work in construction was already an empowering experience in itself. “Kaya ko pala ang trabahong pang-lalaki (I realized I can also do men’s work),” is a common refrain of the women laborers (footnote 3).8 While women felt that

7 Kalahi-CIDSS. Features. Madalag’s Women Warriors. 8 DSWD Kalahi-CIDSS NCDDP. Gender Videos. Samar.

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they may be violating cultural norms in doing men’s work, they also found the experience empowering. The opportunity to earn income for their families, either for the first time ever, or as additional income to what they have already been earning as housemaids, vendors, barangay health workers, and other jobs, was of course among the greatest motivators for women to join the workforce, to stay on, and to explore similar opportunities in the future. As one of the woman laborers said, “May budget na ako para sa bigas (Now, I have a budget for rice).” Another one realized and now imparts the message to other women that “we women should not depend on our husbands—it’s time we change our traditional beliefs and attitudes about that” (footnote 6).

Some communities have been supportive of women joining the workforce and arranged for designated caretakers for children, so that mothers can have the time to join the implementation of subprojects. Another volunteer, who lived 15 kilometers away from the sitio where she volunteered at, had to hitchhike with passing vehicles to bring her to and from her meetings. According to her, “Lahat ng dumadaan na sasakyan pinapara ko para makiusap na pasakayin ako, makarating lang sa munisipyo (I hail passing vehicles to beg them to allow me to ride with them just so I can get to the municipality)”. She said that when she explained her purpose in going to the sitio, the drivers would gladly give her a ride. In the course of her volunteer work, she was able to hitch a ride with different vehicles, from big dump trucks carrying sand and gravel, to motorcycles. Because of this, she was given the nicknames “Para Girl (The Girl Who Hails),” and “Riding in Tandem Girl” because she would ride at the back of the motorcycle.9 35. This project has clearly created inroads in women’s economic empowerment through the engagement of women in male-dominated work. It has overcome traditional attitudes that construction work is only for men and provided the evidence that women should and can do it. It has also changed the attitudes of community members towards women doing non-traditional jobs.

3. Redistribution of unpaid care work

36. Women’s unpaid work has been recognized globally to be among the biggest barriers to women’s development. Women’s unpaid work had been recognized to include domestic and care work, subsistence agriculture, helping in family business without pay, and volunteering in the community, church, school or other organizations. 37. One of the major risks of development projects in targeting women’s participation in project activities is the tendency to aggravate their burden of unpaid work. This is because women are usually involved in development projects in volunteer capacities and are therefore not financially remunerated for their invested time and efforts. Women’s responsibilities in projects added to the ones at home, thus increasing their unpaid work. 38. In this project, however, we have seen an increased willingness of husbands and male partners to share in the household work, while their wives or female partners are involved in project activities. In the town of Madalag, women observed a positive change in the behavior of their husbands, particularly the improvement of their negative drinking habits. According to one ACT member, “The men no longer drink. They sobered up. They go home early now. In times when their wives go out, the husbands do the housework,” This was in contrast to how the men completely relied on their spouses to do all of the domestic chores in the past (footnote 7). 39. This change in attitude is largely attributed to the project’s gender sensitivity trainings and awareness raising activities on the importance of women and paid work, and the convergence

9 H. Estacion. 2015. Riding in tandem girl” helps her community through Kalahi-CIDSS. NDBCNews. 7 January.

38 Appendix 6

with the Pantawid Pamilyang Pilipino Program’s Family Development Sessions on male responsibility in gender equality. 40. No doubt, this project has contributed to the attainment of the Sustainable Development Goal (SDG) 5 targets to recognize and value unpaid care and domestic work through the promotion of shared responsibility within the household and the family.

4. Reduction of women’s time poverty

41. Time poverty is the burden of competing claims on an individual’s time that reduce their ability to make unconstrained choices in how they allocate their time leading to increased work intensity and to trade-offs among various tasks.10 Women and girls are more prone to time poverty because of the gender division of labor that imposes upon them the burden of domestic and care work.

42. As recognized by SDG 5, building of infrastructure is important to reduce women’s time poverty. This has been undoubtedly demonstrated by the project results. The new access roads in the community decreased travel time to the main roads and onward to the markets, schools, health centers, and other services usually found in town. Foot bridges made travelling less strenuous and dangerous because people no longer needed to go up and down the mountains, or cross rivers on foot, especially for school children and small farmers bringing their produce to town. Flood control infrastructure like river walls and drainage canals decreased the risks and incidence of flooding, in turn, reducing the time spent by community women cleaning up after the floods and taking care of relatives suffering from flood-related illnesses. 43. Partial results of the outcome survey first round reveal that there was an increase in access (measured as reduction in travel time to services) to most basic services. The project expected at least a 10-percentage points improvement from the baseline to the first round. In the preliminary estimates presented, travel time in accessing these facilities has decreased significantly—recording up to 38 percentage points improvement from the baseline.11

5. Strengthened policy environment for gender mainstreaming in community driven development initiatives

44. One of the most important empowerment outcomes of the KC-NCDDP is the development of policies, standards and tools to mainstream gender throughout the community empowerment activity cycle (CEAC). In 2013, it has developed the Gender Mainstreaming Toolkit to ensure that in the entire CEAC process, sex-disaggregated and other gender-relevant data are collected; women’s meaningful participation is facilitated; gender issues are pro-actively surfaced in situation analysis, and when identified, taken into account in planning and addressed in implementation; and that evaluation and monitoring includes analysis of gender impacts. The Toolkit served as a guide for frontline workers to consciously work for gender equality and make the CDD process inclusive for all. 45. Moreover, the KC-NCDDP gender framework specifies that (i) gender data captured during the social investigation report include preliminary gender analysis; (ii) gender issues are included in the participatory situation analysis (PSA); (iii) gender dimension is in the criteria formed during criteria setting workshop; and (iv) analysis of gender needs and benefits to both

10 A. Kes and H. Swaminathan. 2006. Gender and Time Poverty in Sub-Saharan Africa. World Bank Working Paper

No. 73. Washington DC. 11 Government project completion report (para. 22).

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men and women are integrated in the conceptualization and design of sub-projects as well as in the preparation of operation and maintenance (O&M). 46. From time to time, Guidance Notes were issued on various subjects that had not been covered by the Toolkit, which further incorporated gender mainstreaming. These gender-mainstreamed Guidance Notes included the Guidance Notes for Conflict-Affected Areas (2015), and Guidance Notes on Integration of WASH in DSWD (2014).12 The Compendium of Forms and Tools (2016) systematizes all forms, templates and recording instruments of activities related to the project.13 Wherever relevant, sex-disaggregated and gender-relevant data are recorded using these instruments. The different manuals created under the project also integrates gender perspective. Some examples of how gender mainstreaming was integrated are:

(i) The environmental safeguards manual ensures that the potential risks and benefits to women are considered.

(ii) The procurement manual stipulates the inclusion of women as part of the workforce requirement.

(iii) The infrastructure manual calls for the inclusion of women during O&M. (iv) The DSWD gender policy requires that all training programs integrate gender

mainstreaming. (v) The DSWD gender and development (GAD) convergence framework calls for optimization

of human and capital resources for the benefit of both men and women in communities where DSWD is providing its services.

47. The terms of reference of ACT members provided for their gender mainstreaming responsibilities, ensuring that they are constantly and proactively working for the gender agenda of the project during implementation. The memorandum of agreement (MOA) with partner LGUs also integrates GAD. The MOA includes a provision to designate a municipal GAD focal person to support the gender mainstreaming thrust of the project. The focal person is also automatically included as a member of the Municipal Coordinating Team (MCT) as part of the municipal enrollment requirements. 48. All these policies, standards, templates and tools that take gender into account every step of the way has created a strong environment for gender mainstreaming. They ensure that project workers at the ground level throughout the country are guided accordingly to work towards gender equality, and the safeguarding that the project processes does not unnecessarily add to the burden of women or reinforce gender disparities and other social inequalities. C. Contribution of Gender Equality Results to Overall Loan Outcomes and

Effectiveness 49. Because of the project’s proactive gender targets and activities, women, who were previously confined to their homes, had been motivated to get involved and contribute in various capacities to the development of their local communities. Capacity-building activities for the effective implementation of the CDD process was participated in mostly by women. Most of the leaders of the various committees and project staff are women. Gender issues were identified, analyzed, and informed subproject prioritization and selection. Particularly on the goal of improving the resiliency of poor communities to natural hazards, gender mainstreaming ensured

12 DSWD. NCDDP. 2015. Guidance Notes for Conflict-Afflicted Areas. Manila; DSWD. Guidance Note on the Integration

of Water Access, Sanitation and Hygiene (WASH) in the Three Core Programs of the Department of Social Welfare And Development. Manila.

13 DSWD. KALAHI-CIDSS. 2016. Compendium of CDD Forms and Tools. Manila.

40 Appendix 6

that the capacities of all citizens, especially those belonging to the marginalized groups, are strengthened to become better planners and decision-makers in their communities. 50. Through these gender interventions, the project has been enriched by the experiences, skills, and wisdom that the women brought to the community. The active participation of both men and women and taking into account gender issues in all stages of the CEAC process led to the successful selection, implementation and completion of gender-responsive and inclusive community-driven development subprojects. 51. As core component of the project and the CDD empowerment strategy, KC-NCDDP promoted the active participation of both men and women in decision making within the opportunities provided to ensure equal access to and benefits of the infrastructure project implementation. In its aspiration to invest in participatory governance and inclusive development, mainstreaming of gender and development in project processes, policies and activities is integral to KALAHI-CIDSS NCDDP. Gender balanced participation is a first step in ensuring that women’s priorities are upheld as community priorities. Indeed, evaluation reveals that projects in target communities are responsive to the preferences stated ex ante by communities, as is validated during focused group discussions in the communities. 52. Gender responsiveness is integrated and mainstreamed in the community empowerment CEAC which recognizes the significant role of both men and women in development. From different community activities, including providing leadership and support to community planning, project development, monitoring and evaluation, as well as subproject implementation, balanced participation of women and men are given precedence. 53. KC-NCDDP opened avenues for participation for both women and men where they themselves identify priorities, collectively decide on solutions, obtain information, and participate not just in subproject implementation but in local governance. Many Filipinos, in fact many Filipino women, from these communities have never known of a similar participatory project conducted in the rural Philippines. KC-NCDDP responded and invested in listening to people at the grassroots level, to women, to indigenous peoples, to disaster survivors, to Filipinos living in conflict affected areas. 54. In the final analysis, the ultimate goal of the project is to reduce poverty in the poorest communities. Poverty, however, does not only mean economic poverty. Disempowerment in its many forms (including gender disempowerment) and manifesting in the political, social, and cultural spheres is both the cause and consequence of economic poverty. Addressing gender inequality and disempowerment by ensuring participation in decision-making, skills building, and gender responsive policy environment, has opened up opportunities for women and marginalized groups and equipped them with the means to extricate themselves out of economic poverty.

III. LESSONS LEARNT AND RECOMMENDATIONS A. Crucial Factors Contributing to The Success of Gap Implementation

55. Gender mainstreaming legal and policy framework. The strong legal and policy framework for gender mainstreaming is one of the fundamental factors that contributed to the success of GAP implementation. National laws and policies served as the anchor on which the gender mainstreaming initiatives of KC-NCDDP were based. The 2009 Magna Carta of Women (Republic Act 9710), and other gender-related national laws, as well as the policies of the DSWD, ADB, and KC-NCDDP provided the legal bases for the mechanisms, standards, practices, and

Appendix 6 41

tools supporting gender mainstreaming in the project. This legal and policy framework facilitated partnerships with LGUs and getting the buy-in of other project partners on the goal of gender mainstreaming. 56. Basic requirements for successful GAP implementation. Another crucial factor leading to the success of gender actions is the timely putting in place of the basic requirements for GAP implementation. These requirements are:

(i) engagement of project gender specialists and designation of GAD focal persons at the regional level, particularly the Deputy Regional Program Managers, ensured that there is a responsible officer who will monitor and support implementation of the GAP at all levels of the project;

(ii) integration of sex-disaggregated data and other gender-related indicators, including those in the DMF, GAP, and in the project performance and monitoring system provided a systematic means to monitor actual gender targets and actions, spot issues, and evidence for corrective or remedial measures during implementation;

(iii) incorporation of the GAP in the over-all project work plans and budgets, as well as in the GAD Plans and Budgets of the project LGUs and the DSWD itself. This ensured that the project GAP forms part of the overall gender agenda of the partner and implementing agencies;

(iv) orientation and capacity-building of project staff, including project gender specialists and gender focals on GAP implementation, monitoring, and reporting requirements has led to the inclusion of key gender actions into the performance targets of the PMO. This provided them the requisite knowledge, skills and confidence to forge effective partnerships on GAD work with other stakeholders such as community volunteers, contractors, and local government officials and personnel; and

(v) timely review of gender-related baselines and targets in the GAP and the DMF, has led to the refinement of activities and targets ensuring their completion/achievement at project completion.

57. Stakeholders capacity. Capacity building of both internal and external stakeholders had been critical in ensuring the GAP’s successful implementation. Because of the project’s sustained capacity building, project staff, community volunteers, LGU partners, and other stakeholders understood the project’s affirmative action in relation to GAD, and cooperated towards the achievement of its goals. 58. Acceptance of local community women. Another element in ensuring GAP implementation success is the receptivity and enthusiasm of community women themselves to work towards their own empowerment and that of their communities. There are numerous stories about women raising their own funds (e.g., selling livestock) because of their eagerness to attend project meetings and capacity-building activities. They have stood up for themselves in the face of doubt and discrimination, especially by local leaders who are not used to seeing women occupy traditionally men’s spaces. On their own initiative, they began to organize themselves to further strengthen their voices and sustain the gains from their involvement in the project. The women’s eager participation may in turn be attributed to the way the project has been designed and implemented to ensure women’s sustained participation in all project activities throughout the CEAC cycle, and to consider and address gender issues every step of the way. This includes taking into account the best times and venues by which to conduct activities to make it convenient for the participation of women. By doing so, the project has managed to sustain its relevance to women’s lives.

42 Appendix 6

B. Challenges in Gap Implementation and How These were Addressed

59. Cultural constraints. The persistence of cultural stereotypes about the gender roles of men and women is an ubiquitous challenge in the project areas and all throughout the project stages. Care work, confinement to women only jobs, limited access to technical skills, and hesitance to “disturb the peace” and offend the feelings of men in the family, are the cultural barriers to carrying out fully the GAD agenda of the project. In the area of construction work, while the project’s achievements in reaching the minimum 20% target of women employment is laudable, gender stereotypes prevented it from reaching the higher target of 30%. Gender stereotypes have been manifested by the hesitance of contractors to hire women, especially during crunch time when subprojects had to completed in tight timelines, on the assumption that men work faster than women in this area. This challenge is more pronounced in the more religious conservative areas of the country, where women are not allowed by men to do construction work for religious reasons. In contrast, where participation is unpaid, as all volunteer groups are, women are perceived as more appropriate participants, since “they have nothing better to do” and “men are better off being employed than volunteering”. 60. Lack of skills. The lack of requisite skills among the local women has also prevented their being hired for non-traditional paid jobs under the project. The project tried to address this by partnering with training providers like Technical Education and Skills Development Authority, Department of Trade and Industry, and the LGU on the provision of non-traditional skills training for women in conducting skills building trainings, but the pool of trained women could not keep up with the demand of the subprojects. 61. Volume of work and staff capacities. The magnitude of work arising from the sheer number of communities that ACT needed to organize and capacitate specially resulting from the scaling up of KC-NCDDP, decreased the productivity and effectivity of project staff in supporting the completion of subprojects within the targets and project standards. Staff turnover also presented a big challenge as there was not enough staff trained on core and functional modules, including gender. This is especially true at the advanced stages of the project because all requisite trainings had already been conducted at the beginning of the project. Staff also had to prioritize other equally important and urgent project tasks, foregoing their training opportunities. This means that some staff could not undergo training upon their initial deployment to the communities and would therefore be trained on the job through mentorship by the more seasoned and trained available staff. 62. Project delay. Delay in project implementation especially during the accelerated CEAC implementation affected overall project timeline, which in turn, adversely affected the timeline of subproject implementation at the communities. As a consequence, communities who had insufficient time to implement the subprojects prioritized hiring men over women, because they arguably worked at a faster pace than women when it comes to construction. 63. Competing priorities at the LGU. While integration of the Barangay Action Plans (BAPs) as part of the Barangay Development Plans (BDPs) had already been institutionalized through Barangay Resolutions, actual execution remained a challenge because of (i) insufficient barangay LGU resources to fund competing development priorities; and (ii) difficulty harmonizing timelines between the project cycles and the local planning process. Competing priorities also limited the provision of gender orientation and training activities to the LGUs. This is particularly critical as it is assumed that LGU officials, specifically the municipal GAD focals, will be responsible for sustaining gender mainstreaming gains upon project completion. To address this in some instances, the requisite gender orientation and training activities were jointly implemented with

Appendix 6 43

other DSWD programs, and also with other government agencies. Change in leadership at the local level also presented a challenge specially when new officials are not supportive of the initiatives introduced by KC-NCDDP under the previous government. 64. Challenges in monitoring and evaluation. Encoding and database issues also challenged accurate monitoring and reporting. For instance, in the beginning there were glitches in reflecting correct sex-disaggregation, low and incorrect encoding, missing data uploaded in the web-based Project Information Management System, and photos erased from the geotagging webapp, among others. While the monitoring and evaluation unit eventually fixed these issues and trained municipal encoders on accurate encoding, past data that were corrupted or erased are still being cleaned or reconstructed. 65. Ensuring Sustainability. Due to the limited knowledge and skills of the O&M groups to ensure the maintenance and functionality of the completed subprojects, and their lack of readiness to perform their functions to operate, maintain and sustain their respective subprojects, the sustainability of the subprojects is not ensured. This has been identified as an issue during different project missions. Thus, the project has responded to this challenge by integrating the conduct of the SET with the task and functions of the Project Monitoring Committee of some LGUs. C. Factors Ensuring Sustainability of Project Gains

66. Institutionalization of gender mainstreaming strategies through program policies. The issuance of the KALAHI-CIDDS GAD Framework, creation of the KALAHI-CIDDS gender mainstreaming toolkit, collection of sex-disaggregated and gender-related data through the project forms and templates, use of gender analysis in the different stages and aspects of the project through gender mainstreamed tools for analysis, continued capacity building on GAD through integrated GAD modules in all training programs—all these serve to sustain the gains of the project. Future implementers of this or similar programs will be grounded on the learnings from almost two decades of project implementation. 67. Project best practices. Together with these policies the project also developed good practices worthy of replication in implementation of similar programs. Among this is the manner by which the Pre-Construction Conference had been conducted during the community orientation and recruitment for the implementation of subprojects. During the pre-construction conference, a workshop is conducted where the program of work is clearly laid out and each job position is explained in particular detail, so that people have a clear understanding what the work entails. It is during these times when women are asked and they realized that they can in fact do the job, contrary to the entrenched idea that these jobs can only be done by men. This manner of presenting to the community the program of works has been credited to the successful recruitment of women into construction work. 68. Another challenge that the project faced is the urgent need to capacitate project staff who work as frontliners, specially on the GAD requirements of the project. There were instances where ACTs were deployed to their areas of assignment without undergoing basic training, including on GAD. To compensate for this, consultants and staff from the regional PMO provided coaching and mentoring sessions to build capacity. 69. LGU adoption and institutionalization of the CDD and CEAC process. Municipal LGUs are generally supportive of the project. They appreciate the transformative process and recognize the change in the behavior of their constituents, from being uninformed to participatory

44 Appendix 6

and empowered. They also appreciate that the small infrastructure projects funded by the project augment the meager development fund of the LGU for development projects. The capacity-building activities conducted by the project to empower LGU counterparts have also been well-received. As a result, some LGUs have committed to sustain the activities of the CEAC, in the form of resolutions and local ordinances. The inclusion of BAPs in the BDP, and in turn the Municipal Development Plan, is one concrete entry point for sustaining gender-responsive planning and budgeting. The BDP is anchored on the BAP that ideally integrates the results of participatory situation analysis, a platform that may be used to tackle gender issues within the community. 70. Women’s transformation. The most important aspect of sustainability is the transformation of women in the communities into more empowered individuals. Through the knowledge, skills and experiences they gained through their involvement in project activities, they have become more confident in themselves and are ready to take on the challenges of community-building. This is especially true for many women project beneficiaries who were previously confined working in their homes. Many women community volunteers have become employed by their respective barangays as health workers, nutrition scholars, bookkeepers, and secretaries, among others. Some have been or are enjoined to run for public office. The transformation of women is an indicator that their capacities have been built up. At the same time, it helps to diffuse the stereotype that women are only limited to performing household tasks; that when given the chance, they can serve as significant partners in local development. 71. Knowledge products. The project has published a large number of knowledge products on gender, including the Gender Toolkit, manual and guidance notes integrating gender, and the compilation of forms, templates and tools. It also has published a project website where all these resources are found; as well as a YouTube channel on where the gender videos series are found. Among the more significant literature coming out of the project is the Gender Mainstreaming in the KALAHI–CIDSS National Community-Driven Development Project: An Assessment published in 2018 (footnote 1), and the "Promoting Gender Equality and Women's Participation through Community-Driver Development" in A Better World: Actions and Commitments to the Sustainable Development Goals.14 All these carefully documented the learnings and gains of the almost two decades of project implementation serve as the shoulders of the proverbial giant, upon which future programs and implementers will stand on. D. Recommendations for Future Projects in the Sector

1. Project Design

72. Future phases of this project or the design of similar projects should build on the gains and learnings so far as discussed above. In addition, to further improve gender design of these projects, the following are recommended: 73. Sustained GAD capacity-building of project staff and other stakeholders. Awareness and full appreciation of the need to mainstream gender in a CDD program is crucial for staff, especially frontliners who directly advocate for the program’s various stakeholders. Therefore, it is necessary for a ladderized GAD training program to be developed for the entire duration of a CDD program and integrated in its overall and annual work and financial plans to ensure that staff

14 Tudor Rose. 2016. A Better World. Volume I: Actions and Commitments to the Sustainable Development Goals.

Gomer Press Ltd: United Kingdom.

Appendix 6 45

members benefit from the training program. The turnover of program staff should also be considered to sustain gender-sensitive facilitation processes. 74. GAD orientation and training for program stakeholders (LGUs, contractors, and service providers) is also critical to enable them to understand the gender mainstreaming agenda of a CDD program. Building their capability on GAD may increase the likelihood of becoming partners in the achievement of women’s empowerment and gender equality goals. At the same time, capacity building activities can serve as a mechanism to help break gender stereotypes. For instance, GAD training can aid staff, suppliers, and other stakeholders in understanding the provision of equal opportunities for both men and women. 75. The provision of non-traditional skills training for women can also form part of the capacity building agenda. Skills gaps of women affect their ability to engage in paid labor and earning capacity. The mandatory 5% GAD fund15 for all national government agencies and LGUs, and 5–30% of official development assistance projects can be a potential source of funds for implementing a non-traditional skills training program for women. 76. Directly address women’s multiple burden and unpaid work. While this project has shown to have made efforts to address women’s multiple burden by making it easy for women to attend activities, through proper scheduling and venue arrangements, the project can do more to directly address this issue. For instance, it can be more pro-active in creating modules specifically discussing women’s burden of unpaid work and the responsibility of men to share in this burden. Many beneficiaries of KALAHI-CIDDS may not be members of the Pantawid Pamilyang Pilipino Program where this matter is extensively tackled, and thus, may not benefit from those discussions. Thus, KALAHI or CDD programs should have that particular module in its ladderized trainings for staff and other stakeholders; and impart messages to this effect in its community awareness programs, specially if this are not taken on by the usual LGU gender mainstreaming programs. 77. Organize women in non-traditional jobs. A pro-active gender measure that can be implemented is the formation of organizations/associations from among women who were recruited into non-traditional jobs, like in construction. This will provide the women the needed peer support, as well as the organization can be a venue for further training, capacity- and confidence-building, and networking for job placement. With the enthusiasm of the local women as shown in this project, this could be easily done. While various women’s group already exists, it may be significant to have a focused group of women working in non-traditional jobs. This recommendation stems from experiences in other countries where, for instance, women in construction work organize themselves together to serve as a support group, as well as to provide each other mentorship, networking and opportunities for continued work in the sector (footnote 10). 78. Strengthen convergence. To ensure that the project really delivers integrated social services, it must be able to converge efforts with other programs in the department, and programs of other government agencies, LGUs, and other stakeholders. It is recognized that subprojects alone do not make a community prosperous. Other development programs should build on the gains of each other and not duplicate or doubly burden the community. The program’s social preparation is a good mechanism to increase engagement with other stakeholders, as this can be an entry point to target development programs. Therefore, the program must improve on

15 C. Connley. 2019. Just 9.1% of America’s construction workers are women—here’s what it’s like to be one of them.

CNBC. 29 January.

46 Appendix 6

facilitating the PSA to help the community members understand how the bigger environment affects them and how they affect other areas. It is highly recommended that the government adapts a whole-of-government approach wherein CDD is seen as a complementary bottom-up mechanism to top-down planning and budgeting.

2. Project Implementation

79. In terms of implementation, it will serve well for future projects to ensure that the basic requirements for GAP implementation discussed above are firmly put into place at the early stages of the project. In addition, to further improve implementation, the following are recommended: 80. Longer social preparation. A 6-month social preparation, especially in the first year of implementation, may not be enough to cover the output requirements of a CDD program that aims to ensure gender equity, inclusion of indigenous peoples and other marginalized groups, and implementation of environmental and social safeguards. A shorter period of social preparation may compromise a program’s goal of building the capacity and empowering communities. During the first year of KC-NCDDP implementation, the Disaster Response Operations Procedure was designed to have a shorter period of social preparation to immediately respond to disaster rehabilitation needs of communities. However, the actual implementation of the Disaster Response Operations Procedure was longer than the regular process. A longer social preparation is necessary during the first cycle of implementation, particularly in communities new to the CDD process, to allow more time for capacitating community volunteers and developing subprojects that are inclusive, participatory, and needs-based. The time needed for training program, staff, and stakeholders should also be factored in when developing the program implementation timeline. 81. Enhancement of manuals and guidelines. Program manuals and guidelines should be synchronized to achieve the set targets on GAD. Some recommendations for enhancing manuals and guidelines are: (i) set the engagement of women in paid labor as a requirement in a community-based procurement manual; (ii) strengthen gender mainstreaming initiatives in all guidelines, including those on organizational development management and O&M; and (iii) include provisions supporting gender mainstreaming initiatives in guidelines on the use of Technical Assistance Fund or community planning grants. 82. Enhancement of monitoring and evaluation of the GAP. The national PMO tracks the progress and performance of a program along GAP targets and gender actions. CDD programs should also monitor other indicators to support gender mainstreaming initiatives. These indicators include those related to (i) women in paid O&M jobs, (ii) provision of GAD training to staff and stakeholders, and (iii) sex-disaggregated data on recruitment of program staff, trainees of GAD and other learning interventions, and community volunteers elected into public office and employed by a local government or national government agency after serving the KCNCDDP or other CDD projects. 83. Monitoring the enhanced competence of community volunteers is critical for assessing the gains of the participatory and empowering process of the program. An assessment against established competency standards among volunteers who receive CDD training may help establish their level of transformation and readiness to assume bigger roles. Empirical data indicate that there are community volunteers who got hired by the municipal or barangay LGU, and/or a national government agency, but they are not usually tracked.

Appendix 6 47

84. Nonquantitative action agenda can form part of periodic monitoring and technical assistance to be provided by national or regional PMOs. This can also serve as an avenue for program staff to discuss their concerns, and deepen their understanding of the program’s gender mainstreaming initiative. Moreover, nonquantitative action agenda can be subjected to a thematic review and/or further study to generate lessons and gains in mainstreaming gender in a CDD program.

48 Appendix 6

ANNEX 1: GENDER ACTION PLAN MONITORING TABLE

Date of Update : 2 August 2018 Project Title : Republic of the Philippines:

KALAHI–CIDSS National Community-Driven Development Project

Country : Philippines Project No. : 46420 Type of Project (Loan/Grant/TA) : Loan (Loan Number: 3100-PHI) Approval and Timeline : 26 March 2014/ 2014-2017 Gender Category : Mission Leader : Ms. Karin Schelzig

Senior Social Sector Specialist Southeast Asia Department Telephone: 683-1567 Fax: 636-2228 Email: kschelzig@adb.org

Project Impact : Improved resiliency of poor communities to natural hazards

Project Outcome : Improved access to services and infrastructure for communities in affected provinces and their participation in more inclusive local disaster risk reduction and management planning, budgeting, and implementation

Appendix 6 49

GAP Progress to date (as of 30 June 2018) Issues and Challenges (GAP Activities, Indicators and Targets, Timeframe and Responsibility)

(This should include information on period of actual implementation, sex-disaggregated quantitative updates (e.g. number of participating women, women beneficiaries of services, etc.), and qualitative information. However, some would be on-going - so

explain what has happened so far towards meeting the target.

(Please include reasons why an activity was not fully implemented,

or if targets fall short, or reasons for delay, etc., and provide

recommendations on ways to address issues and challenges)

Output 1: CDD subprojects selected, implemented, and completed (Enhanced gender-responsiveness of activities in the CEAC processes) Social Preparation and Subproject Identification 1. At least 50% women’s

participation in all meetings on infrastructure prioritization, and design

Achieved: Women participation in KC-NCDDP has been satisfactorily high in almost all activities and meetings of the Project. Women participation in the Project Development Workshop, where the infrastructure design takes place, is at 64%. While in MIBF-Criteria Setting Workshop, the project mechanism used by community members to determine the factors that will guide the selection of CDD interventions is at 59% and MIBF-PRA where prioritization of subprojects for support by the NCDDP takes places is at 63%. A relatively high participation of women in BAs is also recorded by the project. Specific to the conduct of 2nd and 4th BA where presentation on problems and needs and proposed solutions and approval and endorsement of the Project Proposal to the MIBF for PRA takes place is at 60% As of June 30, 2018, women’s participation in workshops / meetings are as follows:

Workshops Conducted

Women Men Total % of Women

Project Development Workshop

21,421 12,103 33,524 64%

MIBF-Criteria Setting Workshop

12,762 8,701 21,463

59%

MIBF-PRA 20,523 11,867 32,390 63%

1.1 Participatory selection of subprojects in the barangay and inter-barangay level assemblies includes an analysis of the needs and benefits of men and women in the criteria for prioritizing community infrastructure to be

Completed: Specified in the operation manual PART 6. KC-NCDDP Gender Mainstreaming Framework that: (i) gender data captured during social investigation report including preliminary gender

analysis; (ii) gender issues included in the PSA; (iii) gender dimension included in the criteria formed during criteria setting workshop;

and (iv) analysis of gender needs and benefits to both men and women in the

conceptualization and design of sub-projects as well as in the preparation of O&M.

50 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges rehabilitated or developed.

This requirement forms part of the orientation and training for the Area and Municipal Coordinating Team training in 2014 and 2015. Information on participatory selection at the community level can be found in: (a) a documentation of the activity with the CEF or local counterpart; (b) information in the community on paper; (c) visualized information on sheets of manila paper or other medium that were used when the community activity was conducted; and (d) concerned CVs’ accounts. Spot-checks and analyses on the needs and benefits of women and men are regularly conducted by the NPMO during taskforce visits and RPMO in the regular monitoring.

1.2 In case of under-

representation or where needed, organize separate meetings with marginalized households, including women to discuss subproject proposals prior to the BA 2.

Achieved: Standard CEAC Manual and Disaster Response Operation Manuals specify as the standard “where needed, separate meetings are conducted for women and other vulnerable groups to solicit reactions, questions, and recommendations.” Separate consultations are conducted in IP areas and GIDAs. Supporting documents can be found at community level on activity with the CEF or local counterpart.

1.3 Ensure that location and timing of meetings are convenient for women.

Achieved: Standard CEAC Manual and Disaster Response Operation Manual provide guidance to staffs in ensuring quality participation of women. Areas for consideration include: (i) determining unique difficulties encountered by women; (ii) specific activities to ensure women’s views are captured; and (iii) proper timing and convenience to best engage women in different activities. BAs are done on a Saturday or Sunday, usually after lunch when more people are available. Activity documentation shows that prior to the BA, wife and husband discuss details and decisions pertaining to the BA. Whoever is available to attend the BA ensures information discussed in the household is relayed. Meetings are usually done on weekdays are the BSPMC meetings. These meetings take place after lunch when many men are at work (in subproject construction) and women can participate in meetings. Women with children manage to attend meetings by bringing them along or when their children are in school. Meeting venue is usually within walking distance. In case men engaged in construction work are requested to attend in the meetings, the men workers have to render offset work hours. The minutes of the BA are regularly spot-checked at the barangay level to ensure that this guidance in the manuals was followed.

2. Enhanced Gender Integration in the KC-NCDDP Guidelines and Materials

Achieved: Guidance Notes was prepared and disseminated to all FOs along mainstreaming gender in NCDDP in November 2014. Three levels of capability building were provided to FO: (i) GAD orientation to staff including discussion of KC-NCDDP gender

Appendix 6 51

GAP Progress to date (as of 30 June 2018) Issues and Challenges Ensure preparation of

simplified and harmonized technical guidance notes on mainstreaming gender in the KC-NCDDP processes.

requirements; (ii) training workshop on mainstreaming gender in KC-NCDDP; and (iii) GRPB training provided to DSWD 3 core social protection program implementers and stakeholders. An AVP was likewise prepared for the project as a reference and orientation to them. This has 3 parts: (i) GAD Overview, (ii) GAD Mandates. and (iii) the GAP. Gender deliverables always form part of the project periodic Performance Review and Evaluation Workshop.

2.1 In the above process,

ensure the review of all existing gender mainstreaming tools and documents and identify potential gaps and areas for enhancements. Specific areas to be sustained and enhanced include, among others, the following:

(a) sustaining the collection of sex-disaggregated data to identify the needs and priorities of men and women related to local infrastructure and the use of this data by communities to identify subprojects; and

(b) ensuring engagement with local women’s groups in key project activities.

Achieved: Disaster Response Operation Manual and Standard CEAC Manual incorporated the actions required in the GAP and has mainstreamed gender integration by incorporating within the CEAC. Sex-disaggregated data for volunteers, attendees, and participants in KC-NCDDP are being captured in the various means of verification. These data are further encoded and generated through the PIMS. The sex-disaggregated data is consistently forwarded to the local governments to support CBMS and inform evidence-based policy making, and design/implementation of local programs. Social Investigation activities form part of the key program activities as per CEAC. In this activity ACTs are specifically guided on establishing rapport with community members, local formal and informal leaders, and other key stakeholders. Peoples Organizations including women’s groups are consulted for possible alliance building.

Subproject Implementation and O&M 3. Ensure 20% to 30% of

the paid jobs created by the project go to women

Achieved: As of June 30, 2018, 21% or 76,774 of the total 371,341 workers hired by the project for paid labor are women. The matrix below provides the percentages of women engaged

NPMO sought responses from the FOs on the prevailing reasons why progress on KPI on women’s engagement in paid labor remains

52 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges (by the end of the project). (Baseline: 3% for skilled and 5% for unskilled in 2013)

in paid labor per region. Of the total women workers engaged for labor by the project, 73,926 are unskilled workers (97%) and 2,221 are skilled workers.

Region

% of Women Engaged in Paid Labor

Q1 2018 Q2 2018

CAR 24% 26%

I 19% 26%

III 12% 14%

IV-A 20% 22%

IV-B 20% 21%

V 19% 19%

VI 16% 17%

VII 20% 22%

VIII 19% 20%

IX 24% 25%

X 20% 21%

XI 20% 20%

XII 23% 26%

CARAGA 23% 23%

Total 20% 21%

at 20%, below the end project target. In January 2018, a memo with a survey questionnaire was sent to Regional Directors of DSWD Regional Offices I, III, IV-CALABARZON, IV- MIMAROPA, V, VI, VII, VIII, IX, X, XI & CARAGA, with particular attention to the RCDS to provide responses and explain the underlying causes of the delay in achieving the target on 20%–30% women engagement in paid labor. Below is the summary of reasons identified by the RCDS.

Appendix 6 53

GAP Progress to date (as of 30 June 2018) Issues and Challenges The M&E Unit

continues with data cleaning on all indicators and to anticipate that the data presented in the next quarter report will likely reflect changes brought about by data cleaning activities. From the survey questionnaire sent to Regional Directors of DSWD Regional Offices I, III, IV-CALABARZON, IV- MIMAROPA, V, VI, VII, VIII, IX, X, XI & CARAGA, the RCDS cited the following challenges and obstacles encountered by field implementers in achieving the key performance indicator on women’s engagement in paid labor: (i) women lack skills and capacity to engage in actual construction resulting to limited

participation; (ii) only men were hired to do the jobs, women were underestimated by men with

regards to their capacity, capability of doing their specific jobs and assignment during the implementation;

(iii) mismatch in available skills of women versus the subproject labor demand (iv) persistent traditional gender stereotypes/roles common barriers in the recruitment or

engagement of women on paid labor (women are weak, fragile, slow workers, not physically strong to endure the vigorous tasks in construction work, women’s unpaid domestic work and care work in the home. These gender stereotypes are further reinforced by social, economic, cultural and environmental barriers to the participation of women in paid labor;

(v) men’s negative perception in allowing spouse to engage in paid labor during SP construction;

(vi) perception of some people/officials in the community that productive roles are for men, while community unpaid activities are for women;

Labor skill breakdown as of June 2018

Position Female Male Total % Female

Carpenter 26 795 821 3%

Electrician 76 903 979 8%

Foreman 872 10,569 11,441 8%

Mason 107 2,670 2,777 4%

Plumber 20 433 453 4%

Other Skilled 1,032 15,686 16,718 6%

Laborer and other unskilled 72,561 247,969 320,530 23%

Source: DSWD

54 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges (vii) employment of women in paid labor is short term (at most 2 weeks or less) to give

more women a chance to be employed in the construction purposely to increase the number or percentage women employed in paid-labor;

(viii) catching up with the timeline requirement of SPI completion; and (ix) profit-focused contractors were not keen of employing large number of women,

viewing women as slow and inefficient workers. Women workers were employed intermittently while men workers were employed from the time construction started until the sub-project is finished.

In various discussions with the Field Offices and as indicated by the RCDS pertaining to the GAP target of 20-30% paid jobs accessed by women, a consistent suggestion was the provision and conduct of non-traditional skills trainings to women workers. As the project is currently implemented, a need to provide specialized trainings to women workers to equip them with critical technical skills, thereby enabling women to actively participate in paid labor during subproject implementation has been identified as one of women’s strategic gender needs on several consultations.

3.1 Disseminate

information through site visits and BAs on the different types of jobs that would be available during construction and those which may be performed by women

Achieved: Guidance Notes on Gender Mainstreaming in NCDDP issued November 2014 to FOs provides guidance to FOs to provide opportunities for women to be trained in non-traditional skills training. Dissemination of information with reference in engaging women in construction is not limited to site visits and BAs. The Pre-Construction Conference is the main venue to discuss details of how women can be engaged during construction. During these conferences, specific tasks were laid out and described in detail to show that it can actually be done by either men or women. It was during these conferences that the stereotypical men’s job in construction was demystified and women realized that they can also do the “men’s job”.

3.2 Ensure linkage with existing/ functioning CEFSs/or other protective spaces so that women can take advantage of employment and training opportunities.

Achieved: Existing practice prefers child minding by the relatives or neighbors as part of the established mutual support system. If the communities need to establish crèche/daycare centers, they can propose as the community subproject within the project itself. When women have to attend training programs, family members or relatives take care of their children. The project as much as possible conducts training on weekends when husbands can take care of the children, and to provide space for children to stay at the meeting venue.

3.3 Ensure equal pay for work of equal value

Achieved:

Appendix 6 55

GAP Progress to date (as of 30 June 2018) Issues and Challenges accomplished for both male and female workers.

As part of the subproject enhancement in the Infrastructure Manual, women are encouraged to participate in actual construction of the subproject and given equal opportunity (i.e. mason, carpenter, plumber) as long as they are physically fit and capable of doing the work. The project abides by the DOLE-issued regional labor wage rates. ERS reflects that both men and women receive the same wage rate per day for the same work. Regular project spot checks verify equal pay to men and women for work of equal value. Of the total labor cost, 16% amounting to ₱166,365,176.47 was paid to women. The cited reason for the difference between the 21% of women engaged in paid labor vis-à-vis the 16% labor cost receive by women is the highly technical nature of most subprojects like water systems, environmental sub projects. These highly technical subprojects demand specialized skills. Of the total skilled workers, 6.3% are women, while 22.6% of total unskilled workers are women.

The decrease in the labor cost paid to women, from 15% to 14%, was due to M&E’s data cleaning. While opportunities for women to engage in paid work are available, most women in the community lack technical skills, experience and may take some time to hone these skills.

4. Ensure that the O&M plan provides 20% to 30% of paid jobs to women.

Achieved: The guideline on providing 20–30% O&M paid job for women has been incorporated in the revised Infrastructure Manual and O&M Manual. Training design for O&M (includes Organizational, Technical & Financial aspect) were developed. O&M trainings, usually attended by the O&M Group organized per subproject, are ongoing. LGU officials are invited to attend these trainings. The NPMO issued the memo to the FO as an advance instruction to ensure that O&M plan provides 20% to 30% of paid jobs to women. Continuous capacity building on O&M for women CVs and women workers. As of June 2018, 62% of the total (6,313 of 10,165) CV participants to the O&M workshops are women. Incorporation of women participation in O&M and ODM guidelines and advocacy materials.

5. Capacity Development Establish balanced

(50%) women’s participation in all community capacity development activities generated through the project.

Achieved: Women’s participation in all capacity building activities in 18,781 barangays in 800 municipalities is at an average of 64%. As of June 30, 2018, CV women participants have participated in the following trainings:

Trainings Conducted Women Men Total % of Women

1. Barangay PSA 81,181 39,636 120,817 67% 2. Project Proposal Development Workshop

21,421 12,103 33,524 64%

3. Community Finance 23,625 11,456 35,081 67%

56 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges 4. Community Procurement

24,370 13,366 37,736 65%

5. Community Infrastructure

18,130 11,291 29,421 62%

6. GAD 2,803 1,757 4,560 61% 7. O&M Workshop 6,313 3,852 11,174 62% 8. Training on Community Monitoring

45,654 25,687 71,341 64%

9. Training on GRS 2,959 1,915 4,874 61% 10. ODM 19,647 11,672 31,319 63%

Other than the 10 identified trainings, no more additional trainings in the past year for capacity development.

6. GRS Disseminate

information on the GRS, its reporting channels and sanction measures to community members.

Achieved: Grievance handling process is explained to the community during the barangay orientation. 18,536 barangays have conducted the GRS orientation during their 1st BA.

CVs from the 18,536 barangays participate in GRS orientations. Three CVs per barangay form the GRS committee. GRS information materials were also displayed and disseminated in 15,448 barangays.

Output 2: Institutional and organizational capacity strengthened (Strengthened recruitment, staffing, tasking, and training) Staffing and tasks of ACTs & CEFs and training 7. [#] [D] Ensure progress

towards 50% women’s representation in leadership positions in CV committees including the Barangay Representation Teams (by the end of the project).

DMF: 50% of the

leadership positions in CV committees held by women by 2017 (baseline: 35% in 2012)

Achieved: As of June 30, 2018, 60% (113,209 out of 189,872) of CVs holding leadership positions (that is head of the committees) are women. 55% of the BRT leaders (11,816 out of 21,559) are women. Of the total 10,044 IP leaders, 5,449 or 54% are women from IP communities holding chairperson positions in the committees. For the sector of senior citizens, 17,634 committee chairpersons are men (55%) and 14,614 committee chairpersons are women (45%). For the youth sector, 9,102 committee chairpersons are young women leaders (65%) and 4,904 committee chairpersons are young men leaders (35%). Standard CEAC Manual and Disaster Response Operation Manual provide guidance to staffs in ensuring quality participation of women. Both manuals specify that CVs such as BRT and PPT are to be selected based on agreed criteria, including affirmative action criteria on women and marginalized groups, citizens other than elected public officials, etc.

Appendix 6 57

GAP Progress to date (as of 30 June 2018) Issues and Challenges Original GAP: Ensure

progress towards 50% women’s representation in leadership positions in the various volunteer committees including the BRTs (by the end of the project).

7.1 Continue to ensure

balanced recruitment of male and female ACs and CEFs in the expanded sites.

Achieved: The project had established the KHRIS database, to facilitate tracking of data on staffing and trainings attended, among others. As of June 30, 2018, women hired staffs are as follows:

ACT Women Men Total % of Women AC 114 76 190 60% TF 56 183 239 23% MFA 173 68 241 72% CEF 551 261 812 68%

7.2 Enhance the TOR for the ACTs to include their gender mainstreaming responsibilities.

Achieved: Gender mainstreaming responsibilities forms part of the TOR of the ACT Members. TORs of AC, TF, MFA and CEF and the memo issued by the NPMO on the use of the TORs have been shared with ADB.

7.3 Review capacity building programs for ACTs and CEFs and ensure provision of appropriate gender training and refreshers—including an understanding of gender differentiated issues and vulnerabilities to natural hazards, disaster impacts, and post-disaster emergency and recovery needs—to improve

Achieved: To ensure provision of appropriate gender training to staff, the following were undertaken: (i) training Needs Assessment involving ACTs, SRPMO and RPMO were undertaken

by the RPMOs; (ii) gender Mainstreaming Training Module was developed by NPMO and provided to

RPMOs. Modules were enhanced by FOs based on the result of TNA; and (iii) GAD Orientation/Gender Sensitivity Training was provided to all staff at all levels. As

part of the training, assessment of gender perspective (pre- and post-tests) was undertaken to provide deeper understanding of current perspective and profile of staff.

A gender AVP was developed to aid the project staff to understand the full context of the project gender mainstreaming requirements.

58 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges understanding of gender perspectives and capacity to support and ensure tangible benefits for women in the CEAC process.

7.4 Ensure balanced representation of women and men in the selection of CVs (encourage increased male involvement in community responsibilities and volunteer roles).

Achieved: Gender Toolkit and Gender Mainstreaming Guidance Notes provide guidance to staffs in ensuring gender balance in selection of CVs. These documents specify that: (i) at least one CV per committee is a woman, and (ii) by the end of cycle, women CV representation should be balanced. As of June 30, 2018, 61% of CVs (334,538 out of 546,620 [unique count]) are women. There are 23,144 women from IP communities participating as CVs. This comprises 59% of the total 39,273 IP CVs. Among the 104,873 senior citizens CVs, 51% were women (53,496 women senior citizens CVs). Membership from the youth sector is recorded at 62,997 comprised of 21,190 young men members (34%) and 41,807 young women members (66%). Coaching and mentoring activities included measures to be undertaken to balance out the participation of men and women and to ensure that men will not lose their voice in community activities such as the BA, membership and leadership in committees and training for CVs. ACTs are guided to ensure that women and men should be represented in all project activities in an equitable way to have their voices heard without fear of reprisal. As of June 30, 2018, the BSPMC CVs are comprised as follows

BSPMC CVs Male Female Total % of Women

Audit & Inventory Team 13,625 39,098 52,723 74%

Bids & Awards Committee 14,362 32,373 46,735 69%

Bookkeeper 321 2,230 2,551 87%

Monitoring & Inspectorate Team 22,556 28,699 51,255 56%

Project Implementation Team 23,928 28,136 52,064 54%

Procurement Team 19,251 33,826 53,077 64%

Total Cvs 94,043 164,362 258,405 64%

Appendix 6 59

GAP Progress to date (as of 30 June 2018) Issues and Challenges 7.5 Explore how to reduce

constraints to women and men volunteers’ participation (e.g. meeting time, locations, and cost of transport).

Achieved: Standard CEAC Manual and Disaster Response Operation Manual provide guidance to staffs in ensuring quality participation of women. Areas to look into includes: (i) determining unique difficulties encountered by women; (ii) specific activities to ensure women’s views are captured; and (iii) proper timing and convenience to best engage women in different activities.

Enhanced competence of the CVs 8. Ensure that female

CVs are provided opportunities to be included in the expanded barangay and municipal development councils (as a strategy to utilize and sustain CV skills and enthusiasm learnt through participation in KC-NCDDP) by the end of project.

Achieved: Barangay GAD Committee is formed in all barangays. To secure legal personality and be eligible for accreditation and membership to local special bodies, BGAD Committees shall be federated at the municipal level. Female CVs become part of the BGAD Committee. Municipal Development Council Expansion Checklist (1 year after KC-LGU MOA signing) monitors the sex-disaggregated data on CV, NGO/PO and LGU representatives. The sex-disaggregated data collected has been used by the LGUs to provide evidence-based policy making, and design/implementation of local programs. The capacity building and capturing of the sex-disaggregated data form part of the sustainability arrangement

8.1 Ensure that training for all CVs integrates gender module

Achieved: The project has an existing gender training design and module intended for CVs and LGUs. Additionally, CV training designs and modules on PSA, project development, procurement, finance, safeguards were enhanced to include session on gender.

8.2 Ensure that 50% of participants of CDD and leadership training programs under the project are women.

DMF: At least 10 CVs

per village trained in CDD by 2017, of which 50% are women

Original GAP: Ensure

that 50% of participants

Achieved: It was emphasized during technical sessions with FOs that the project requires balanced representation of women and men in training programs. FOs were directed to provide TA to SRPMOs and ACTs to ensure that this will be complied with. The project provided the following Leadership Trainings to CVs. Of the 311,519 total participants trained, 63% (195,885 participants) are women. During the implementation, ACT members and the MIAC consistently provide coaching sessions and technical assistance to the community members. Leadership training sessions, team building activities, and other organizational development processes were also held to strengthen existing committees and organizations engaged in the implementation.

60 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges of leadership training programs under the project are women.

This is to align with

DMF indicator 2.2) Capacity Development 9. Ensure gender

orientation and training (basic to advance) is incorporated in the overall KC-NCDDP capacity development programs for partner agencies e.g. Barangay and Municipal LGU officials, MIAC, and Municipal GAD focals.

Achieved: The project provided GRPB Training for LGU Officials and CVs. This training covered three (3) modules: (i) Gender Sensitivity Training; (ii) Gender Analysis; and (iii) GRPB. 5 batches of TOT were conducted in 2015 for selected regional, provincial and municipal staffs of the 3 Core Programs. GRPB trainings were pilot tested in 1 municipality per region. Roll-out of this training to all KC-NCDDP municipalities’ forms part of the project directive and have been completed in December 2016. All municipalities have rolled out the GRPB training except in Region 3 and NIR. Due to transition of RCDS in Region 3 in Q4 2017, the GAD Training in Region 3 was conducted Q2 of 2018 (April 2018). The Environment and Social Safeguards refresher course conducted on Q4 2017 (October 2017) incorporated a session on gender analysis and gender mainstreaming reporting through the ESMP. The refresher course was participated by new ACT and MCT members orientation from the 3 municipalities of Region 3. For NIR, the field office closed operations in Q4 2017 (December 2017) and its remaining staff has been absorbed by either Region 6 or Region 7. Furthermore, NIR does not have a RCBS to support the roll out GRPB training and the Regional Training Officer has resigned in Q2 2017.

9.1 Ensure that all project staff members undergo Basic Gender Training/Orientation—this to include a section on gender and disasters.

Achieved: 4-hour GAD Orientation form part of the Basic CEAC Training for ACTs. The new ACT staff, hired as replacement those who have resigned, attended a one-day training on GAD, which is forms part of the basic CEAC training given to newly hired staff. This is organized and provided by the RPMO. A 3-day GAD TOT was facilitated by the NPMO to 14 FOs and for roll out to all staff. This forms part of the 2015 KC-NCDDP directive to FOs. Staff and consultants underwent GAD orientation, gender integration in the CEAC processes and GRPB. Gender in environment and disaster forms part of the discussion.

Appendix 6 61

GAP Progress to date (as of 30 June 2018) Issues and Challenges The 3-day GAD TOT was only a one-time training conducted in 2015. All staff from NPMO and RPMO have undergone this GAD TOT and subsequently has been rolled out to ACT staff.

9.2 Incorporate orientation

on prevention of sexual exploitation, abuse and harassment and on reporting mechanisms within the basic orientation to project staff, ACTs and MIAC.

Achieved: This forms part of the module in Item 9 and 9.1.

Output 3: Program management and M&E systems enhanced (sustained gender- sensitive project management and M&E) Staffing 10. Incorporate gender-

mainstreaming responsibilities in the TORs and Performance Targets of PMOs.

Achieved: Gender mainstreaming responsibilities had been incorporated in the TORs of all ACT positions including TORs of other staff and consultants.

Monitoring and Evaluation 11. Ensure that KC-

NCDDP process evaluations incorporate a review of gender dimensions and recommendations.

Original GAP: Ensure

that periodic KC-NCDDP process evaluations incorporate a review of gender dimensions and recommendations.

Achieved: Two Process Evaluations had already been contracted by World Bank and are already completed. Some of the gender aspects looked into are: 1. Process Evaluation Phase I

a. Participation of women b. Representation of women in activities as well as beneficiary groups c. Whether gender balance was achieved in all stages of the ACEAC d. Sex-disaggregation of statistics for barangay profiles for gender-based analysis of

barangays e. Women identified as a subgroup (sector) for analysis of respondents

2. Process Evaluation Phase II

a. Sex-disaggregation of statistics for barangay profiles for gender-based analysis of barangays

b. Women identified as a subgroup (sector) for analysis of respondents c. GAD training as part of the list of training programs given to stakeholders

The Process Evaluation showed that: 1. Process Evaluation Phase I

a. there was a high level of participation of women in community activities, especially during the social preparation stage in all study areas;

62 Appendix 6

GAP Progress to date (as of 30 June 2018) Issues and Challenges b. women and women’s groups were well-represented during the ACEAC; and c. gender balance was acknowledged by the CVs, and also ensured during the

community-managed implementation, although some community members had issues with participation of women as paid laborers. The 30% target was achieved in some areas but not in others. There were also several discussions as to what jobs women would be allowed to do during SPI.

2. Process Evaluation Phase II

a. women constitute roughly half of the population of barangays under study (49.4%); also comprise half of the counted marginalized IPs (47.5%), PWDs (45.3%), and senior citizens (52.4%). In the IP Council identified by the study, there are no female members;

b. women’s groups are formed in barangays under study; c. In general, one of the key findings was that the needs of the different groups (IPs,

PWDs, senior citizens, women and men, young and old and all other marginalized groups) were identified during the BA. For BUB, Subprojects were identified by CSOs, one of which represents women; and

d. women are members of CV teams, but no statistics are mentioned.

GAD training was provided to ACT members before deployment or as refreshers. However, it is unclear whether CVs received GAD Training.

11.1 Review the existing

KALAHI–CIDSS results framework, identify gaps, and provide recommendations to ensure that gender indicators will form part of the overall KC-NCDDP M&E framework

Achieved: All KC forms capture sex-disaggregated data. Gender indicators are included/monitored in the overall KC-NCDDP Results Framework.

11.2 Review existing M&E tools used in regular assessments and M&E reporting system and provide recommendations to guide in enhancing the implementation of the KC-NCDDP GAP

Achieved: A compendium of CDD forms and tools were formed which contain revised/enhanced means of verification to capture quantifiable gender data such as attendance for every activities/trainings and involvement in sub-project implementation. Sex disaggregated data are being encoded through the PIMS.

11.3 100% of newly targeted 189 municipalities

Achieved:

Appendix 6 63

GAP Progress to date (as of 30 June 2018) Issues and Challenges generate sex-disaggregated data by end of project (baseline: 10% in 2009)

100% of newly targeted

189 municipalities generate sex-disaggregated data by 2017 (baseline: 10% in 2009)

Comment: This is DMF

indicator 3.3.

A total of 272 new KC-NCDDP municipalities (Yolanda affected) are generating sex-disaggregated data using the CDD forms and database which require sex-disaggregation.

11.4 At least one study on effectiveness and impacts completed, including a review of gender equality dimensions, by end of project.

At least one study on effectiveness and impacts completed, including a review of gender equality dimensions, by 2017

Comment: This is DMF

indicator 3.2

(Ongoing Implementation) Not yet Achieved: To be conducted. The study will be part of the Outcome Survey, focusing on effectiveness. ADB Thematic Study # 3 on Gender Mainstreaming in the KC-NCDDP: Results and Lessons Learned is currently being conducted with the objectives of (i) evaluating the extent of gender mainstreaming efforts of the project based on the GMEF; and (2) documenting results of gender mainstreaming, gender equality and women’s empowerment using Longwe’s Women Empowerment Framework. Mainstreaming of Gender, as a crosscutting issue, in policies and implementation is also assessed in the other thematic studies on DROP Implementation, Community-Based Procurement Process, IPs through the ESMP, O&M and Livelihood Projects. Initiative being undertaken is the conduct of a Qualitative Research on the four KPIs of the GAP. The proposal has been approved and the research study will Include the administering of analysis tools to the 6 participating RPMOs. The aim of the analysis tools is to assess and analyze the project’s gender equality results in relation to the 4 KPIs (women’s engagement in paid labor, leadership and decision-making in the committees, women’s participation in BAs and women’s inclusion in O&M and sustainability)

Firm to conduct Outcome Survey is already on board (Social Weather Stations) and has already submitted inception report as first deliverable. Researcher/writer data gathering has begun the data collection from mid-December 2017 until Q1 2018. The researcher has submitted draft versions of the report. The GS has provided comments for the revision of the case study report Ongoing procurement of the researchers who will conduct the data collection (through focused group discussions and key informant interviews) will be done through the RPMOs

Gender action plan implemented by 2017

Achieved

AC = Area Coordinators, ACEAC =Accelerated Community Empowerment Activity Cycle, ACT = Area Coordination Team, ADB = Asian Development Bank, AVP = audio-visual presentation, BA = barangay assembly, BGAD = barangay gender and development, BRT = barangay representation team, BSPMC = Barangay Sub-Project Management Committee, BUB= bottom up budgeting, CAR = Cordillera Administrative Region, CBMS = community-based monitoring system, CDD = community driven development, CEAC = Community Empowerment Activity Cycle, CEF = Community Empowerment Facilitator, CEFS = child friendly spaces, CSO = civil society organization, CV = community volunteer, DMF = design and monitoring framework, DOLE = Department of Labor and Employment, DROP = Disaster Risk Operational Procedure, DSWD = Department of Social Welfare and Development, ERS = Employment Record Sheet, Environmental and Social Management Plan = ESMP, FO = field office, GAD = gender and development, GAP = gender action plan, GIDA = Geographically Isolated and Disadvantaged

64 Appendix 6

Areas, GMEF = Gender Mainstreaming Evaluation Framework, GRPB = Gender Responsive Planning and Budgeting, GRS = Grievance Redress System, GS = gender specialist, IP = indigenous peoples, KC-NCDDP = KALAHI CIDSS-National Community Driven Development Project, KHRIS = KC NCDDP Human Resource Information System, LGU = local government unit, MFA = Municipal Financial Analyst , MIAC = Municipal Inter-Agency Committee, MIBF = Municipal Inter-Barangay Forum, MOA = memorandum of agreement, NCDDP = National Community Driven Development Project, NGO= non-government organization, NPMO = national project management office, ODM = Organizational Development Management, O&M = Operation and Maintenance, PRA = Participatory Resource Allocation, PSA = participatory situation analysis, PIMS = Project Information Management System, PPT = Project Preparation Team , PWD = person with disability, Q = quarter, RCBS = Regional Capacity Building Specialist, RCDS = Regional Community Development Specialists, RPMO = regional project management office, SPI =sub project implementation, SRPMO =sub-regional project management office, TA = technical assistance, TF = technical facilitator, TOT = Training of Trainers, TNA = training needs assessment, TOR = terms of reference. Source: Asian Development Bank.

Appendix 7 65

INVOLUNTARY RESETTLEMENT AND INDIGENOUS PEOPLES SAFEGUARDS A. Background 1. The Kapit-Bisig Laban sa Kahirapan–Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) project, supported the implementation of the government's KALAHI CIDSS—National Community-Driven Development Project (KC-NCDDP), which aimed to restore basic social services and rebuild communities affected by Typhoon Yolanda (internationally known as Haiyan). 2. The project impact is improved resiliency of poor communities to natural hazards. The outcome is improved access to services and infrastructure for communities in affected provinces and their participation in more inclusive local disaster risk reduction and management planning, budgeting and implementation. The project outputs are: (i) community-driven development subprojects selected, implemented, and completed; (ii) institutional and organizational capacity strengthened; and (iii) program management and monitoring and evaluation systems enhanced. The project covers approximately 554 Yolanda-affected municipalities in 39 provinces across nine regions of the Philippines. 3. The project is categorized as B for involuntary resettlement and A for indigenous peoples safeguards. During project design, resettlement issues were not foreseen as significant due to the size and nature of the project, which is mostly the rehabilitation of existing infrastructures. An indigenous peoples planning framework (IPPF) and resettlement framework were prepared based on the Asian Development Bank (ADB) Safeguard Policy Statement (2009), 1 the existing environment and social management framework (ESMF)2 of the Department of Social Welfare and Development (DSWD), and the National Community-Driven Development Program Disaster Response Operations Manual. During project implementation, the project prepared an ESMF to guide project staff in complying with the environmental and social safeguards requirements for all subprojects. The objectives of the ESMF were to: (i) ensure that selected subprojects under the project are designed to avoid or minimize negative impacts; and (ii) identify any negative impacts and develop and implement appropriate mitigation measures as part of the subproject design and implementation. 4. A total of 15,482 subprojects were implemented which comprised (i) 5,831 basic access infrastructures such as farm to market road; (ii) 4,649 basic social services such as a barangay hall, day care center, and school; (iii) 1,778 community production, economic support and common service facilities such as community center, livelihood equipment and training; (iv) 2,994 environmental protection and conservation subprojects such post-harvest facilities; (v) 178 others; and (vi) 44 skills training and capability building subprojects. The processing of the subprojects followed the ESMF. B. Scope of Land Acquisition and Resettlement Impacts 5. There were 1,218 infrastructure subprojects that have project-affected persons where portions of their lands were affected. Other subprojects were mostly the rehabilitation of existing infrastructure, training and social services which have no involuntary resettlement impacts. For

1 ADB. 2009. Safeguard Policy Statement. Manila. 2 The ESMF of DSWD complies with the environmental safeguard requirements of the Department of Environment

and Natural Resources and World Bank, as well as the principles and contents of the environmental assessment and review framework, indigenous peoples planning framework and resettlement framework.

66 Appendix 7

the subprojects that require land, the land acquisition instrument used includes (i) deed of donation,3 (ii) usufruct agreement, (iii) municipal and barangay resolutions, (iv) Department of Education certification, and (v) other instruments.4 There were 1,218 project-affected persons who executed deed of donation for their lots affected by the subprojects. In public land affected by the project, the right of way acquisition used were usufruct agreement, municipal and barangay local government unit (LGU) certification and Department of Education certification. No information was recorded by the project on the amount of land required by the project activities from the affected landowners, as well as the information on amount of land donated. There are subprojects with mixed land acquisition documents, hence the total number of land acquisition documents used are more than the total number of subprojects as shown in Table A7.1. There were two affected households that were physically displaced by the subproject and relocated 50 meters north of the project area. The LGU provided assistance in the construction of the new house and this issue was settled satisfactorily.

3 Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who

accepts it. Joint affidavits of two adjoining landowners or barangay officials (for unregistered lands) usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance unless the title constituting it, or the law otherwise provides.

4 Other instruments refer to: (i) Department of Environment and Natural Resources certification for sites within forest land; (ii) LGU for existing small roads; (iii) permit to construct for subprojects requiring small piece of land to erect electric posts, or pipes passing through a private land; and (iv) National Irrigation Administration certification for subprojects within or passing an existing irrigation system.

Appendix 7 67

Table A7.1: Number of Subprojects with Type of Right of Way Acquisition Document

Region No. of SPs

Type of land ownership a

(government)

Type of land ownership a (private) b

Deed of Donation

Usufruct Agreement

M/BLGU Resolution

DepED Certification

Other Instruments c

IV-A 700 127 213 144 97 133 21 132

IV-B 1,242 667 217 200 89 740 130 676

V 1,631 891 237 43 52 1,044 277 391

VI 3,906 1718 629 599 309 1,679 275 1,532

VII 2,086 1332 207 41 523 1,614 62 99

VIII 4,479 3450 964 81 71 3,751 257 1,340

X 102 32 24 5 20 58 2 9

XI 328 139 17 26 25 223 18 2

Caraga 1,008 545 170 79 6 806 100 200

TOTAL 15,482 8,901 2,678 1,218 1,192 10,048 1,142 4,381 DepEd = Department of Education, M/BLGU = municipal/barangay local government unit, SPs = subprojects. a This includes types of land ownership excluding livelihood and employment. b This includes titled and untitled lands. c This refers to other permits and certifications. Source: Asian Development Bank.

68 Appendix 7

C. Scope Indigenous Peoples Coverage in the Project 6. As reported in the indigenous peoples framework, eight out of nine regions affected by Yolanda have barangays with indigenous peoples populations. Indigenous peoples communities are expected to benefit from the project as shown by the experience of DSWD in the implementation of KC-NCDDP. These areas may either belong to ancestral lands of indigenous peoples or have indigenous peoples presence. Location, in this case, notes the presence of ancestral domains that have been awarded with certificates of ancestral domain titles, which validate the presence of people with indigenous knowledge systems and practices distinct from mainstream Filipino society. Details of areas with certificate of ancestral domain titles are in Table A7.2.

Table A7.2: Areas with Certificate of Ancestral Domain Titles

Region Municipalities with Approved CADTs

Municipalities with On-process CADTs

Municipalities with ADSDPP

CAR 11 16 23 I 4 3 2 IV-A 0 2 0 IV-B 23 21 3 V 7 3 4 VI 5 9 3 VII 2 4 - IX 8 5 2 X 9 13 2 XI 15 9 7 XII 8 1 1 Caraga 20 7 3 TOTAL 112 93 50

ADSDPP =ancestral domains sustainable development and protection plan, CADTs = certificates of ancestral domain titles, CAR = Cordillera Administrative Region. Source: National Commission on Indigenous Peoples.

7. Indigenous peoples communities were located in 308 out of 800 municipalities enrolled in the KC-NCDDP. Table A7.3 shows the distribution of indigenous peoples per municipality where subprojects were located. The 15,642 implemented subprojects benefited 3,681,643 households, of which 883,403 households are indigenous peoples.

Table A7.3: Participation of Indigenous Peoples

Region Project Municipality Municipalities with IP

Population IP HHs CAR 37 37 81,530 I 11 5 10,035 III 3 0 0 IV-A 23 7 882 IV-B 67 32 39,299 V 99 30 7,700 VI 97 43 22,379 NIR 36 14 4,430 VII 84 8 1,489 VIII 134 13 333 IX 46 45 76,757 X 64 4 7,963 XI 27 27 145,305

Appendix 7 69

Region Project Municipality Municipalities with IP

Population IP HHs XII 17 15 29,801 Caraga 55 28 62,756 TOTAL 800 308 490,659

CAR = Cordillera Administrative Region, HHs = households, IP = indigenous peoples. Source: Asian Development Bank.

D. Implementation of Indigenous Peoples Framework 8. The project’s indigenous peoples planning framework’s (IPPF) objective was to ensure indigenous peoples were informed, consulted and mobilized during subproject identification, prioritization and implementation. The development of subprojects followed the community empowerment activity cycle (CEAC) which facilitated indigenous peoples participation.5 The CEAC had four stages which are (i) social preparation, (ii) subproject identification and development, (iii) subproject selection and approval, and (iv) subproject implementation. The IPDF prescribed that project should ensure an informed participation of indigenous peoples in CEAC so that they will be in a position to receive culturally compatible social and economic benefits, and that indigenous peoples will not be adversely affected by subproject implementation.

1. Compliance with Social Safeguard Instruments

9. In accordance with the provision of the ESMF, communities prepared the Environment and Social Management Plan (ESMP) for their proposed subproject. Potential impacts and mitigating measures were indicated in the ESMP which is monitored during project implementation. Area Coordinating Teams (ACTs) facilitated the meeting wherein community members assessed the socio-cultural impacts of the subproject and prepared the ESMP. All 15,482 subprojects have submitted the ESMP. No indigenous peoples plan was submitted since there were no reported subprojects that had negative adverse impacts. 10. The ESMP, which was prepared by community volunteers in consultation with the community members, included potential impacts and mitigating measures of the subproject to land, air, biological and social environment; compliance with national laws on indigenous peoples and the ADB Safeguards Policy Statement (2009); access and restriction; monitoring parameter; implementation schedule; and responsible entity. The ESMP was prepared in the local dialect in the area.

2. Consent from Indigenous Peoples Communities

11. Pursuant to the IPPF and the Indigenous Peoples Rights Act, projects located in indigenous peoples communities or has impact to indigenous peoples should undergo the free and prior informed consent (FPIC) process before project implementation. The FPIC process gives indigenous peoples the right to be consulted and for their consent to be secured before projects and programs are implemented in their domains. It involves field-based investigation through a series a consultation with indigenous peoples leaders. Following CEAC, the National Commission on Indigenous Peoples (NCIP) considered the community-driven development subprojects as community-solicited or initiated activities, which do not require compliance with the

5 The CEAC includes 4 stages which are: (i) social preparation, (ii) community planning and project proposal

development, (iii) community-managed implementation and community-based organization formation, and (iv) community monitoring. The CEAC training for ACTs discussed the major activities and steps under each stage, activity participants, implementation standards, outputs, and tools in implementing each activity.

70 Appendix 7

field-based investigation requirement provided under the NCIP Revised guidelines on FPIC and other related processes of 2012 (Administrative Order No. 3 Series of 2012). Thus, subprojects were subjected to a validation process to determine that proposed subprojects are initiated and solicited by the indigenous peoples and the plans and activities are in accordance with their culture. The validation process is done through interviews with indigenous peoples leaders and other members of the community. 12. The process, undertaken by NCIP, focused on validating whether the subproject was initiated and decided on by the indigenous community in accordance with their social and cultural practices and in all activities, maintaining respect for the indigenous community’s values. The NCIP was faced with budgetary constraints and insufficient number of staff that limited their capacity to respond to the huge demand for the FPIC process in KC-NCDDP areas. Thus, of the 5,374 that submitted requests for validation, only 4,253 (79%) were validated. 13. The conduct of validation resulted to either the issuance of certification precondition or certification of non-overlap by the NCIP. The certification precondition certified that the project had undergone a free prior and informed consent, while a certification of non-overlap confirmed that the project is not located in ancestral domain and has no impacts with indigenous peoples. There were 3,103 certifications issued out of the 5,075 subprojects in indigenous peoples areas. Regular reports and continuing dialogues with the NCIP regional offices have filled in the gaps and assured communities and the NCIP that project processes in KC-NCDDP fully complied with the consultation and FPIC of the NCIP

Table A7.4: Status of Certification Precondition/Certification of Non-Overlap Issuance

Region No. of Validated

SPs No. of SPs with

CP/CNO % of Validated SPs with

CP/CNO CAR 317 317 100% I 141 136 96% IV-A 14 7 50% IV-B 75 22 29% V 61 37 61% VI 344 344 100% VII 21 2 10% IX 665 371 56% X 63 0 0% XI 787 490 62% XII 480 241 50% Caraga 1465 1136 78% TOTAL 4,433 3,103 70%

CAR = Cordillera Administrative Region, CNO = certification of non-overlap, CP = certification precondition, SPs= subprojects. Source: KC-NCDDP national program management office.

3. Consultation and Participation

14. Consultation with indigenous peoples communities was conducted during the project preparation and implementation through community/barangay assemblies. An average of five barangay assemblies were conducted for each subproject. Indigenous peoples household participation was high with an over-all participation rate of indigenous peoples at 55% which exceeded the DMF target of 45%. ACTs integrated culture-sensitive facilitation approaches and used strategies to encourage and enable indigenous peoples participation. The strategies used were: (i) written communication sent to the barangay and tribal officials in the local language: (ii)

Appendix 7 71

conduct of house-to-house visits, ensuring that the indigenous communities were fully informed about the program; and (iii) visual aids and presentations used during activities and discussions in the local language. ACTs adapted their facilitation methods depending on whether the indigenous peoples comprised either a majority or a minority in a barangay or municipality. Where the indigenous peoples are a minority, the ACTs engaged indigenous peoples leaders and conducted separate consultations with the indigenous peoples communities without the presence of non-indigenous peoples. Where the indigenous peoples comprised the majority population, no separate consultations were conducted, but isolated communities were informed.6

4. Training, and Grievance Redress Mechanism

15. As reported, the national project management office (NPMO) of the project monitored the provision of capacity building activities by the regional project management office (RPMO) and sub-regional project management office (SRPMO) on environment and social safeguards implementation requirements. The RPMO conducted training with LGU counterparts to ensure safeguards implementation including culture sensitivity. Mentoring and coaching were provided to the RPMO and SRPMO, as well as trainings of ACTs to understand safeguards consideration in project implementation. Training on culture sensitivity was also conducted for 174 staff from NPMO, and regions IV-A, Caraga, V and X in 2015. A training on safeguards was conducted during the project implementation. The NPMO facilitated two cluster consultation-dialogues with indigenous peoples tribal leaders which provided indigenous peoples a venue to share good practices and discuss issues and concerns of indigenous communities during KC-NCDDP implementation. Table A7.5 shows the trainings conducted by the RPMO related to environmental and social safeguards in 2018.

Table A7.5: List of Safeguards Trainings and Workshops

Region Training Date Participants Number of

Participants I Strengthening Culture Sensitivity in

Development Planning through CDD with MCT, NCIP and DILG

23–25 April 2018 MCT 56

Gender and Development Checkpoint April–May 2018 MIAC stakeholders and

BLGU represented by

Punong Barangay

36

Coaching and Mentoring for Community Empowerment Facilitator

31 May–1 June 2018

Community empowerment

facilitators

31

IV-A IP Culture Sensitivity Training for LGUs

5–8 June 2018 LGUs from 7 Municipalities with

IP

50

Roll out Training on Climate Resilient Infrastructure (including the reiteration of Philippine Environmental Impact Statement System and its IRR)

12–16 March 2018 RIO, CIO, TEF 25

IV-B Roll out Training on Climate Resilient Infrastructure (including the reiteration of the Philippine Environmental Impact Statement System and its IRR)

19–23 March 2018 RIO, CIO, TEF 25

6 KALAHI-CIDSS External Monitoring Report.

72 Appendix 7

Region Training Date Participants Number of

Participants VII Roll out Training on Climate Resilient

Infrastructure (including the reiteration of the Philippine Environmental Impact Statement System and its IRR)

25–29 July 2018 RIO, CIO, TEF 40

VIII Consultative Meeting with Field Program Implementers and Stakeholders

18 April 2018 RPMO, DENR, NCIP

representatives

15

IX ACT Strategic Direction Setting for CDD Sustainability

23–24 May 2018 ACT 247

V Municipal Orientation and Accountability End Cycle Review Workshop

23–24 May 2018 and 19–20 April

2018

ACT, MCT 95

XI On Site Coaching for TFs and Municipal Technical Coordinators Reecho of Learning Session on Social and Environmental Safeguards

18–19 May 2018 20–21 June 2018

TF, MCT 65

Learning Session for KC-NCDDP Community Empowerment Facilitators - Issues and Concerns Re: Environmental and Social Safeguards

21–22 May 2018 ACT 110

Roll out Training on Climate Resilient Infrastructure (including the reiteration of the Philippine Environmental Impact Statement System and its IRR)

2–6 April 2018 RIO, CIO, PDO III, TEF, MCT-TEF

30

XII Roll out Training on Climate Resilient Infrastructure (including the reiteration of the Philippine Environmental Impact Statement System and its IRR)

12–15 March 2018 RCIS, RIO, RIA, RPO, TF, MCT-TF

29

Caraga Roll out training on Climate Resilient Infrastructure (including the reiteration of the Philippine Environmental Impact Statement System and its IRR)

15–19 May 2018 RIO, CIO, TF 28

ACT = area coordinating team, BLGU = barangay local government unit, CDD = community-driven development, CIO = community infrastructure officer, DENR = Department of Environment and Natural Resources, DILG = Department of Interior and Local Government, IP = indigenous peoples, IRR = implementing rules and regulations, KC-NCDDP = KALAHI CIDSS-National Community-Driven Development Project, LGU = local government unit, MCT = municipal coordinating team, MIAC =Municipal Inter-Agency Committee, NCIP = National Commission on Indigenous Peoples, PDO = project development officer, RCIS = regional community infrastructure specialist, RIA = regional infrastructure assistant, RIO = regional infrastructure officer, RPMO = regional project management office, RPO = regional procurement officer, TEF = technical empowerment facilitator, TF = technical facilitator. Source: KALAHI-CIDSS Social Safeguards Monitoring Report.

16. A grievance redress system (GRS) was set up. The GRS focals were provided trainings on the handling of complaints, documentation, and reporting. Dissemination materials were distributed to stakeholders informing them about the GRS. Grievance boxes were provided in the barangay halls. As of June 2018, 800 enrolled municipalities have conducted their municipal-level GRS orientation during the municipal orientation. Moreover, 18,781 barangays in enrolled municipalities conducted the GRS orientation and formed GRS committees during their first barangay assembly. Meanwhile, 16,546 barangays displayed their GRS information materials such as tarpaulins/posters and brochures. Reported grievances were (i) type A - non-contentious, queries and comments; (ii) type B - compliance to the project processes and other project implementation arrangements; and (iii) type C - grievance on procurement processes and financial management. Almost all (99%) reported and received grievances were resolved. Table A7.6 shows the summary.

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Table A7.6: Grievances Received and Resolved through the Grievance Redress System

Type Grievances Received Grievances Resolved

No. % No. % A a 86,292 95.59 86,292 95.60

B b 3,342 3.70 3,319 3.70

C c 640 0.71 625 0.69

Total 90,274 100.00 90,236 99.99 a Non-contentious, queries and comments. b Compliance to the project processes, memorandum of agreement and other KALAHI-CIDSS National

Community-Driven Development Project implementation arrangements. c Grievance on procurement processes and financial management. Source: KALAHI-CIDSS Social Safeguards Monitoring Report.

E. Assessment of Impact to Indigenous Peoples 17. The indigenous peoples framework included anticipated positive and negative impacts of the project based on the social impact assessment conducted during project preparation. The positive impacts projected were (i) indigenous peoples communities have projects that they identified; (ii) indigenous peoples communities will have better access to basic services; (iii) indigenous peoples communities can participate in the decision-making process; and (iv) indigenous peoples will acquire project development and management skills. Anticipated negative impacts if consultation and participation are not indigenous peoples-sensitive and appropriate to indigenous knowledge systems and practices and customary laws include: (i) subproject may not be appropriately designed for indigenous peoples community; (ii) indigenous peoples may be further marginalized from barangay processes; and (iii) lack or low participation of the community, particularly women. The following were impacts to indigenous peoples based on the project outputs which were reported in the external monitoring report. 18. Community-driven development subprojects selected, implemented, and completed. The project implemented a total of 15,482 subprojects with 883,403 indigenous peoples household beneficiaries. The largest bulk of the subprojects was basic access to infrastructure and basic social services categories. Access to infrastructures and basic social services had positive impacts to the indigenous peoples communities. As an example, the solar lighting subproject in Batad, Iloilo allowed Ati women to work at night, preparing herbal products to sell in the market. The Ati women were able to increase their production with the lighting which resulted in added income for their families. The rehabilitated farm-to-market road in Pilar, Bohol provided the Eskaya Tribe easy transport of their farm produce to the market. Farm produce were delivered to the market on time and sold fresh, preventing spoilage, and provided farmers economic benefits. The Mangyans of Magsaysay, Occidental Mindoro viewed their balay tirigsunan or tribal hall as a statement of their identity as indigenous peoples and an affirmation of their right of ownership over territorial ancestry territory.7 The construction of additional classrooms provided more room for indigenous peoples students in schools located in the indigenous peoples areas. In other subprojects, indigenous peoples communities installed signs in the hedges of their ancestral domain which delineated exact boundaries, and applied for the ancestral domain delineation process as their subproject. These subprojects addressed tenurial security, as land tenure issues are among the common problems facing indigenous peoples. 19. Institutional and organizational capacity strengthened. The project supported capacity building development of the local government. The project mobilized community volunteers, including indigenous peoples, in subproject implementation. In indigenous peoples

7 KALAHI-CIDSS External Monitoring Report.

74 Appendix 7

areas, the community, through their decision-making process, selected community volunteers who oversaw the project implementation and were provided training on organizational development, project planning, implementation and monitoring. A community monitoring committee was organized to monitor project implementation. The consultative process of the project provided the indigenous peoples an opportunity to voice their development needs and concerns to the barangay LGU. The provision of trainings to community volunteers contributed to the improved capacity and organization skills of indigenous peoples communities. 20. Program management and monitoring and evaluation systems enhanced. The project contributed to the gathering of basic indigenous peoples data on the ground that was encoded and entered into the database by the regional team and submitted to the national monitoring and evaluation team. The information gathered in tracking outcomes and impacts for indigenous peoples include (i) indigenous peoples households’ beneficiaries; (ii) participation rate in the barangay assemblies/consultation process; (iii) training of community volunteers and project staff; and (iii) indigenous peoples household participation. The household data on indigenous peoples was used in the determination of an appropriate facilitation strategy, which was employed as appropriate for areas where indigenous peoples are a minority or majority. F. Safeguards Project Monitoring

21. The project utilized two types of monitoring, (i) internal monitoring conducted by the project and (ii) external monitoring conducted by an external monitoring consultant who was not involved in the project implementation. There were eight internal semi-annual environment and social monitoring reports and four external reports prepared and disclosed to the ADB website as summarized in Tables A7.7 and A7.8.

Table A7.7: Summary of Internal Safeguards Monitoring Report

Safeguards Monitoring Report Disclosure Date

Environmental and Social Monitoring Report (January–June 2018) 4 January 2019

Environmental and Social Monitoring Report (July–December 2017) 23 March 2018

Environmental and Social Monitoring Report (January–June 2017) 26 December 2017

Environmental and Social Monitoring Report (July–December 2016) 26 December 2016

Social Monitoring Report (January–June 2016) 26 January 2017

Environmental and Social Monitoring Report (July–December 2015) 26 December 2017

Environmental and Social Monitoring Report (January–June 2015) 26 December 2017

Environmental and Social Monitoring Report (July–December 2014) 26 December 2017 Source: Asian Development Bank.

Table A7.8: Summary of External Social Safeguards Monitoring Reports

Safeguards Monitoring Report Disclosure Date

External Monitoring Report on Involuntary Resettlement (Final Report) 24 August 2018

External Monitoring Report on Involuntary Resettlement (Midterm) 18 July 2018

External Monitoring Report on Indigenous Peoples Safeguards (Final) 24 July 2018

External Monitoring Report on Indigenous Peoples Safeguards (2014–2017) 23 May 2018 Source: Asian Development Bank.

22. Review missions were conducted to monitor the project implementation. There were eight review missions with safeguards conducted. These missions with summary of agreements are in Table A7.9. All mission agreements were complied with by DSWD, except for the review of the safeguards database which is still ongoing. The absence of staff in areas that no longer implement

Appendix 7 75

KC-NCDDP makes validation of some data difficult. DSWD commits to address issues on data consistency with the help their field offices.

Table A7.9: Review Mission with Summary of Agreements Mission Dates Issues/Output/Agreement

18-20 January 2015 Finalized the environment and social management framework, environment and social management plan, indigenous peoples plan, resettlement and indigenous peoples plan templates, and agreed on the approval process.

Noted that less than 10% of subprojects in 84 municipalities with indigenous peoples population will require indigenous peoples plans or resettlement plans.

Social safeguards training provided.

9–17 April and 27 April–6 May 2015

Noted that safeguards training was conducted, technical session was extended to project staff, and the indigenous peoples guidance note was popularized.

Recommended the need to further simplify the environment and social management framework and gave a reminder on the submission of indigenous peoples and involuntary resettlement plans for projects with negative impacts.

5–16 October 2015 Developed the safeguards database and reviewed the sample subproject proposal. Noted inconsistencies in the safeguards impacts or information provided in the subproject

proposal documents submitted and recommended that these specific subprojects be covered during the external monitoring.

14–18 March 2016 (Mid-Term Review)

Established a database to track safeguards implementation. No indigenous peoples or involuntary resettlement plans were submitted, as no subproject

reported with adverse negative impacts. Recommended the improvement of reporting.

17–20 August 2016 The sites visited followed the measures in the environment and social management plans. Identified a need for systematic monitoring and strengthening of the documentation of

land ownership. Noted some indigenous peoples volunteers.

6 Nov–Dec 2017 Environment and social management plan implementation is generally on track. Indigenous peoples household participation in barangay assemblies was 54%. Almost all subprojects (95%) have environment and social management plans. Identified the need to fast track external monitoring.

4–14 June 2018 There were two affected household structures which were relocated within the subproject area. The local government unit assisted in the construction of the new house. The documentation must be included in the environment and social management plans.

Indigenous peoples participation rates were high at 55%, and did not deviate from 56% (2016) and 52% (2017), and exceeded the design and monitoring framework target of 45%.

30–31 Jan 2020 Project completion review mission was conducted.

Source: Asian Development Bank.

23. Institutional Arrangements. The program management structure was divided between the NPMO (responsible for national policy and technical assistance) and RPMO (responsible for field operations). The safeguards officers of the NPMO supervised and assisted the RPMO and SRPMO in ensuring the integration of safeguards in subproject planning and implementation. The ACTs facilitated the safeguards processing and assisted the community volunteers in preparing safeguards documents. The community volunteers prepared and implemented the safeguards instruments and monitored the ESMP implementation. Trainings and coaching were provided to the RPMO and ACTs to equip them with safeguards implementation. A total of 126 staff as safeguards focal persons were hired in NPMO, RPMO and SRPMO; ACTs were engaged by the project. These were adequate in helping 546,620 community volunteers who were responsible in subproject implementation on the ground.

76 Appendix 8

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Schedule Para. No. Description Remarks/Issues 1 5 1 Implementation Arrangements

The Borrower, through the EA, shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of any discrepancy between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.

Fully complied with Project is implemented in accordance with the PAM. ADB approved changes through minor change memos.

2 5 2 The Borrower, through the EA, will ensure that a fully operational RPMO is established for each Project Participating Region and shall ensure that no disbursements are made to a Beneficiary until an RPMO has been established in the region in which that Beneficiary is located.

Fully complied with

3 5 3 The Borrower, through the EA, will ensure that the IAs are equipped with professionally skilled staff, reasonable office space, equipment, and adequate financial resources required for implementation of the Project throughout Project implementation.

Fully complied with The EA recruited staff at the NPMO, RPMO, SRPMO and ACT in accordance with qualification standards set by KC-NCDDP. The EA provides financial resources to NPMO and RPMOs based on approved work and financial plans supporting Project implementation.

4 5 4 The Borrower, through the EA, shall ensure that all Works under the Project are designed and constructed in accordance with all relevant national, municipal and local design codes and standards of the Borrower and that the construction supervision, quality control, contract management, and completion inspection and acceptance procedures will be in accordance with all applicable laws, municipal and local regulations of the Borrower.

Fully complied with All KC-NCDDP infrastructure projects are designed and constructed in pursuant to the provisions of the CBIM. The following design and construction standards from concerned government agencies are generally used: (i) DPWH - roads and bridges (ii) NWRB - water supply subprojects

(standards set in NWRB’s Water Supply Design Manual)

(iii) DepEd and DPWH - school buildings (iv) DSWD - daycare centers (standards and

basic amenities) (v) DOH - barangay health stations

For other community subprojects without the prescribed national standards, the RPMO IO

Appendix 8 77

Schedule Para. No. Description Remarks/Issues and the NPMO IO decided on the appropriate design and quality control standards based on nationally acceptable standards.

Construction supervision, quality control, contract management, and completion inspection and acceptance procedures are included in the CBIM in accordance with applicable laws and regulations.

5 5 5 The Borrower, through the EA, shall ensure that adequate funding and human resources are allocated so that Project facilities are maintained and operated in good condition, and in strict conformity with all applicable laws, regulations and standards of the Borrower.

Fully complied with The CBIM provided for procedures for the creation of O&M Groups responsible for the operation and maintenance of subprojects after completion and for undertaking O&M activities by the community. Subprojects were turned over to Barangay LGU that in turn allocated funds for O&M of subprojects.

6 5 7 For purposes of Output 1, the Borrower through the EA shall make grants to beneficiaries to carry out the Subprojects in accordance with the selection and other criteria and procedure and on terms and conditions set forth in the PAM, including: a. A Subproject may be selected only if it a community

development project that is technical, financially and environmentally viables, and socially and economically justified.

b. A Subproject shall not include expenditures for any of the activities or items set out in Appendix 5 of the SPS or included in the negative list of activities that may be harmful to the environment or indigenous peoples as detailed in the PAM (such negative list not to be amended or revised without ADB’s consent).

c. A grant to a Beneficiary may be approved by the EA only if a memorandum of agreement, with terms and conditions acceptable to ADB, has been entered into between the EA and the municipality in which the Beneficiary of the grant is located and the municipality has agreed to comply with the Project Manuals.

Fully complied with The grants were provided to beneficiaries for subprojects that were selected and approved based on the agreed criteria and procedures.

78 Appendix 8

Schedule Para. No. Description Remarks/Issues d. A grant to a Beneficiary may be approved only if such

Beneficiary: (i) has prepared an IEE and an EMMP in accordance with the principles set forth in the EARF, in the event that the environmental screening carried out in accordance with the EARF concludes that an IEE and EMMP are required; (ii) has prepared an RP in accordance with the principles set forth in the RF, in the event the screening carried out in accordance with the RF concludes that an RP is required; and (iii) has carried out consultations with and a process of informed participation by indigenous peoples, in accordance with principles set forth in the IPPF, in the event that the Subproject impacts such people and to ensure that the design and implementation of the Subproject adequately addresses the needs and cultural preferences of such people.

e. In respect of each grant to a Beneficiary for a Subproject, the Borrower shall ensure that all relevant Beneficiary executes and delivers a Barangay Subproject Implementation Agreement with the parties thereto prior to the release of any funds forming part of such grant to the Beneficiary. In this regard, the Borrower shall ensure that the EA and RPMOs follow the procedure set out in the Project Manuals regarding the conditions for fund release, including the requirement for RPMOs to review the accuracy, completeness and validity of a request for funds release and its accompanying documents (which includes an executed copy of the associated Barangay Subproject Implementation Agreement). Each Barangay Subproject Implementation Agreement shall include provisions where the Borrower obtains rights adequate to protect the interests of the Borrower and ADB, including without limitation the rights to: (i) require the Beneficiary to carry out each of its Subprojects with due diligence and efficiency and in accordance with sound technical, financial, managerial, social and environmental standards and practices, and to maintain adequate records; (ii) require the Beneficiary to have in place prior to approval of a grant and, thereafter maintain, a barangay sub project management team in accordance with the

Appendix 8 79

Schedule Para. No. Description Remarks/Issues requirements set out in the PAM; (iii) require that the Works to be financed out of the proceeds of the grant shall be procured in accordance with the Procurement Plan and shall be used exclusively in the carrying out of the Subproject; (iv) require that the Beneficiary implement its EMMP, RP and program of consultation with and informed participation by indigenous peoples, if applicable, in a manner satisfactory to the Borrower and ADB; (v) inspect, by itself or jointly with representatives of ADB such Goods, Works, the sites, plans and construction included in each Subproject, the operation thereof and any relevant records and documents; (vi) require that the Beneficiary provide to the Borrower and ADB with all such information as the Borrower or ADB may reasonably request relating to the foregoing and to the administration, operations and financial condition of the Beneficiary and to the benefits to be derived from its respective Subprojects; (vii) require the Beneficiary to: (A) establish and maintain a financial management system, including records and accounts, and prepare financial reports in a format acceptable to the Borrower and ADB, adequate to reflect the operations, resources and expenditures related to each of its Subprojects; and (B) have the records, accounts and financial reports referred to in clause (A) above for each fiscal year audited, in accordance with auditing standards acceptable to the Borrower and ADB, consistently applied, by independent auditors acceptable to ADB; and (viii) suspend or terminate the right of the Beneficiary to the use of the proceeds of the grant upon failure by such Beneficiary to perform its obligations under its Barangay Subproject Implementation Agreement with the Borrower.

7 5 6 The Borrower, through DSWD, shall: a. not later than six (6) months after the Effective Date,

furnish to ADB the fully revised Project Manuals, all acceptable to ADB; and

b. not amend, delete, suspend, or waive any part of the Project Manuals, without the prior approval of ADB.

Fully complied with All 11 project manuals were issued NOLs. ADB reviewed and issued NOLs for any adjustment or update in manuals and associated guidelines.

8 5 8 Counterpart Support Fully complied with

80 Appendix 8

Schedule Para. No. Description Remarks/Issues The Borrower, through the EA, shall ensure that counterpart funding is provided in a timely manner. To this end, the Borrower and the EA shall ensure timely preparation and submission of annual budgets and requests for disbursement of counterpart funds necessary for project implementation (including for land acquisition and resettlement activities) and take all measures necessary or appropriate for the prompt disbursement of such funds.

The EA has been prompt in ensuring that government counterpart funding is provided in a timely manner.

9 5 9 Environment The Borrower, through the EA, shall ensure that the preparation, design, construction, implementation, operation and decommissioning of each Subproject and all Project facilities comply with: a. all applicable laws and regulations of the Borrower

relating to environment, health, and safety; b. the Environmental Safeguards; c. the EARF; and d. all measures and requirements set forth in the respective

IEE and EMP, and any corrective or preventative actions set forth in an SMR.

Fully complied with As of 30 June 2018, there are 3 category B ADB-financed subprojects for which an ECC from EMB-DENR is required. The RPMO requested re-categorization of two other subprojects or cancellation of ECC applications. The request was subsequently approved. Per NPMO feedback on ECC cancellation for two subprojects as of 19 July 2018, the DENR has decided to cancel the ECC for the Small Scale Dam/Spillway subproject in Passi, Igbaras, Iloilo considering the minimal threshold. The two other subprojects were already issued ECC by the DENR. The following information from the safeguards database has been validated as of 30 June 2018 for ADB-funded subprojects: (i) 15,482 or 100% of the 15,482 ADB-funded

have complied with the requirement to prepare an ESMP.

(ii) A total of 7,584 subprojects have CNC from the DENR-EMB; CNC is optional per ESMF.

10 5 10 Land Acquisition and Involuntary Resettlement The Borrower, through the EA, shall ensure that all land and any rights-of-way required for each Subproject and all Project facilities are made available (including making the same available to the Works contractor if applicable), in accordance with the schedule agreed under the related Works, and any land acquisition and resettlement activities are implemented in compliance with:

Fully complied with No involuntary resettlement issues were reported to NPMO. Items (a)-(c) are fully complied with. On item (d), no category B subprojects have been reported by the EA.

Appendix 8 81

Schedule Para. No. Description Remarks/Issues a. all applicable laws and regulations of the Borrower

relating to land acquisition and involuntary resettlement; b. the Involuntary Resettlement Safeguards; c. the RF; and d. all measures and requirements set forth in the respective

RP, and any corrective or preventative actions set forth in an SMR.

11 5 11 Without limiting the application of the Involuntary Resettlement Safeguards, the RF or the RP, the Borrower, through the EA, shall ensure that no physical or economic displacement takes place in connection with the Subprojects until: a. compensation and other entitlements have been

provided to affected people in accordance with the RP; and

b. a comprehensive income and livelihood restoration program has been established in accordance with the RP.

Fully complied with The final SMR (due on 30 July 2018) includes documentation of the physical displacement of 2 APs in Barangay Mahilum in Calatrava, Negros Occidental. The APs were fully compensated in accordance with the project’s safeguard framework. The external monitoring report likewise covered different types of losses, subprojects, and APs with a focus on tenants and informal dwellers.

12 5 12 IPs The Borrower, through the EA, shall ensure that the preparation, design, construction, implementation and operation of the Project, each Subproject and all Project facilities comply with: a. all applicable laws and regulations of the Borrower

relating to IP; b. the IP Safeguards; c. the IPPF; and d. all measures and requirements set forth in the respective

IPP, and any corrective or preventative actions set forth in an SMR.

Fully complied with Items (a)-(c) are fully complied with. For item (d), no category B subprojects have been reported by the EA for which an IPP should be prepared and submitted to ADB. The EA had submitted to ADB the required external monitoring reports on IP safeguards (for midterm and project closing), which evaluate the KC-NCDDP’s compliance with established IP safeguards. The EA reported that the external monitoring covered the subproject proposals reviewed by ADB to validate the findings and determine if corrective measures, if any, had been undertaken.

13 5 13 Human and Financial Resources to Implement Safeguards Requirements The Borrower shall make available or cause the EA to make available necessary budgetary and human resources to fully implement the EMP, the RP and the IPP.

Fully complied with Resources for the implementation of the ESMPs are covered by the community grant and funding from the barangay local government unit. LGU covers the admin and O&M cost.

82 Appendix 8

Schedule Para. No. Description Remarks/Issues The program of works covers a portion of the cost of mitigation.

14 5 14 Safeguards – Related Provisions in Bidding Documents and Works Contracts The Borrower shall ensure or cause the EA to ensure that all bidding documents and contracts for Works where applicable contain provisions that require contractors to: a. comply with the measures relevant to the contractor set

forth in the IEE, the EMP, the RP and the IPP (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in an SMR;

b. make available a budget for all such environmental and social measures;

c. provide the Borrower with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP and the IPP;

d. adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and

e. reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.

Fully complied with Provisions in the Conditions of Contract and Contract Agreement for Works have been amended to include safeguard provisions.

15 5 15 SMR The Borrower shall do the following or cause the EA to do the following: a. submit quarterly SMRs to ADB and disclose relevant

information from such reports to affected persons promptly upon submission;

b. if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP and the IPP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and

Fully complied with ESMP monitoring and reporting is conducted at the barangay level during the construction phase. Item (a) – EA submitted semi-annual SMRs for

2014-2018 All SMRs submitted were disclosed at the ADB and DSWD websites.

Item (b) - No unanticipated impacts were reported to NPMO Item (c) - No breach of compliance reported

Appendix 8 83

Schedule Para. No. Description Remarks/Issues c. report any actual or potential breach of compliance with

the measures and requirements set forth in the EMP, the RP or the IPP promptly after becoming aware of the breach.

16 5 16 Prohibited List of Investments The Borrower shall ensure that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS.

Fully complied with The prohibited investment activities are also in the negative list of KC-NCDDP which is being used in the identification of subprojects.

17 5 17 Labor Standards The Borrower, through the EA, will ensure that all bidding documents for Works will include provisions to require the contractors to: a. prioritize employment of women and the poor to at least

the percentages of the labor force as set out in the GAP; b. provide equal pay for equal work, regardless of gender,

age, ethnicity or any other factors; c. provide the timely payment of wages; d. maximize the employment of local people who meet the

job and efficiency requirements for project construction, operation and maintenance and in that regard, not discriminate against people based on age, provided they are capable of performing the work;

e. advertise labor requirements in a timely manner prior to recruitment, in a venue that can reasonably be expected to be seen by interested men and women, regardless of age or ethnicity;

f. provide workers with a written contract; g. provide such workers with adequate on-the-job training

and safety training; h. comply with core labor standards and the applicable

labor laws and regulations, including stipulations related to employment;

i. not employ child labor; and j. maintain records of labor employment (including the

name, ethnicity, age, gender, working time and payment of wages) and ensure that such records are included in summary form in the project performance management system.

Fully complied with Bidding docs for works are not applicable because there are no projects procured through NCB and ICB. Subprojects are of small value and are usually procured through community shopping and direct contracting which are below the approved thresholds in the Procurement Plan. However, Project is compliant with all items under labor standards. On item (f), there is a written contract for labor procured through shopping for works, direct contracting for works, and “pakyaw contracts”. For other community-based labor, there is no written contract since labor is employed on a daily basis as agreed upon in community assemblies.

18 5 18 Gender Fully complied with delay.

84 Appendix 8

Schedule Para. No. Description Remarks/Issues The Government, through the EA will ensure that the GAP is fully implemented and that all Project activities are designed and implemented in accordance with the GAP. Measures will include, but not be limited to the following: a. particular selection of Subprojects will include an

analysis of the needs and benefits of men and women in the criteria for prioritizing community infrastructure to be rehabilitated or developed;

b. separate meetings with marginalized households, including women, where needed, to discuss Subproject proposals and all meetings held at times and in locations convenient for women;

c. increasing women in leadership positions in volunteer committees to 50% by end of the Project (baseline of 35% in 2012);

d. between 20% to 30% of the paid labor jobs created by the Project are provided to women at the end of the Project;

e. the O&M plan for the Project provides at least 30% paid work to women;

f. 50% of the participants in overall community based capacity development programs under the Project are women;

g. gender mainstreaming responsibilities are included in the terms of references and performance targets of project management officers;

h. all Project staff undergo gender training; and i. gender indicators are integrated in the overall monitoring

and evaluation framework.

The GAP implementation progress report for Q4 2017 reflects the detailed accomplishment of gender actions/targets. Of the 31 actions/targets (formerly 29 and now includes 2 DMF targets), 30 have already been achieved. The review of gender equality dimensions was completed after project closing in December 2018.

19 5 19 Governance and Anticorruption The Borrower shall, and shall cause the EA and IAs to, comply with ADB’s Anticorruption Policy (1998, as amended from time to time). The Borrower: a. acknowledges ADB's right to investigate, directly or

through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the project; and

b. agrees to cooperate, and will cause the EA, IAs, and all other government offices, organizations and entities involved in implementing the Project to cooperate fully

Fully complied with Items (a) and (b), ADB’s right to investigate- Copies of vouchers and other documents in relation to expenses charged from the loan being provided to ADB upon request. Item (a), inspection of contractor’s activities related to fund withdrawals and settlements – majority of contracts are small in value partaking

Appendix 8 85

Schedule Para. No. Description Remarks/Issues with any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation.

In particular, the Borrower, through the EA, shall ensure that: a. periodic inspections of the Project contractors’ activities

related to fund withdrawals and settlements are carried out;

b. relevant provisions of ADB’s Anticorruption Policy are included in all bidding documents for the project; and

c. contracts financed under the Project include provisions specifying the right of ADB to audit and examine the records and accounts of the contractors, suppliers, consultants, and other service providers as they relate to the project. Individuals/entities on ADB’s anticorruption debarment lists are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.

of contracts procured through shopping and direct contracting. Items (b) and (c), ADB’s Anticorruption Policy in bidding documents and right to audit and examine records- The Conditions of Contract for Goods and Works under the Community Based Procurement Manual include the appropriate provisions of ADB’s Anti-Corruption Policy. This is also included in the Request for Quotation, Purchase Order, Contract Agreement for Program and Subproject Procurement as of November 2017. In line with and supplementing the ADB Anti-Corruption Debarment List, the Project had its own blacklisting and suspension procedures for contractors and suppliers, which include those in the government blacklist. Post sampling review was conducted and none of the contractors or suppliers were found to be on the government blacklist nor ADB’s sanctions list, and likely due to the size and nature of the contracts for sub-projects none had prior contracts with ADB or other multilateral development banks.

20 5 20 If the Borrower or ADB is or becomes aware or has a reasonable suspicion that any member of the EA or an IA has engaged in corrupt or fraudulent practices (as defined in ADB’s Anticorruption Policy [1998 as amended to date]) under or in connection with the project or the loan, the Borrower will take such timely and appropriate action satisfactory to ADB to investigate and/or remedy the situation.

Fully complied with Allegations of fraud have been reported to ADB, investigated by the EA and remedied appropriately.

21 5 21 In addition to these requirements, to deter corruption and increase transparency, the Borrower shall create a Project website within 2 months of the Effective Date, accessible by the general public, to disclose various information concerning the Project including general information about the Project, public procurements related to the Project under

Fully complied with KC-NCDDP website was created even before the Effective Date. It has web link to the ADB Philippines Country Office a that contains the link to ADB’s Integrity Unit thru Fraud and Corruption button. Data in the website is updated as

86 Appendix 8

Schedule Para. No. Description Remarks/Issues Outputs 2 and 3 of the Project (as described in paragraphs 2(b) and (c) of Schedule 1), Project progress and contact details in English. The website shall also provide a link to ADB’s Integrity Unit b for reporting to ADB any grievances or allegations of corrupt practices arising out of the Project and Project activities. For each contract procured by the EA under Outputs 2 and 3 of the Project using NCB procedures, shopping and consulting services, the website shall include information on, among others, the list of participating bidders, name of the winning bidder, basic details on procurement procedures methods adopted, amount of contract awarded, and the description of goods/services, including consulting services, procured. The website whenever applicable shall be updated within 2 weeks after: (i) each award of contract, and (ii) each submission of the semi-annual Safeguards Monitoring Report to ADB. In addition, the Borrower shall cause the EA to post detailed information on community procurements under Output 1 on public notice boards in concerned barangays. For any contract procured under the Project, the Borrower shall cause the EA to permit any bidder to request an explanation as to why a bid was unsuccessful and the EA shall respond within 20 working days.

procurements are undertaken. EA maintains a Procurement website that contains information on contracts under Outputs 2 and 3. Under Outputs 2 & 3, there are no contracts procured through NCB and contracts procured through shopping are below the thresholds provided under the approved procurement plan.

The newly developed EPMS includes all the required data as specified for Program and Subproject Procurement. Community procurements are posted in public notice boards within the community and adjacent communities. Permitting any bidder to request an explanation as to why a bid was unsuccessful is applicable only for contracts procured through NCB. Contractors or suppliers requesting an explanation as to why a bid was unsuccessful can course such request through the GRS under the project which takes care of all complaints including those involving procurement related matters.

22 4.04 The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

Fully complied with At the municipal level, the project ensures that there is no duplication of programs at the community level by mapping projects of other agencies, LGUs, and other stakeholders. National level coordination happens at the NIAPIT and Human Development and Poverty Reduction Cluster of the Cabinet being co-chaired by the DSWD Secretary.

23 4.06 The Borrower shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.

Fully complied with The EA conducts periodic field visits to the project sites and provides the relevant documents needed during procurement post-review in accordance with ADB procedures.

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Schedule Para. No. Description Remarks/Issues 24 4.07 The Borrower shall ensure that any facilities relevant to the

Project are operated, maintained and repaired in accordance with sound applicable technical, financial, business, development, operational and maintenance practices.

Fully complied with

25 4.02 The Borrower through the Project EA shall make available, promptly as needed and on terms and conditions acceptable to ADB, the funds, facilities, services, land and other resources, as required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the Project facilities.

Fully complied with The KC-NCDDP does not have Project facilities to operate and maintain. Land is provided by the community, not the EA. Government counterpart funds are provided in a timely manner to NPMO and RPMOs for program management and conduct of capability building and institutional support activities. O&M of subprojects is undertaken by communities and local government per mutual partnership agreement signed upon turnover of project to the O&M group.

26 4.05 a. The Borrower shall (i) maintain separate accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors’ opinion on the financial statements, use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for imprest fund(s) and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning

Fully complied with Item (a) - (i) to (v) are complied with. Item (b) - The EA submitted to ADB APFS for FY 2014-2018 before 30 June following each fiscal year. These are all disclosed in the ADB website. Item (c) – ADB has not made any request.

88 Appendix 8

Schedule Para. No. Description Remarks/Issues these documents and the audit thereof as ADB shall from time to time reasonably request.

b. ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website.

c. The Borrower shall enable ADB, upon ADB's request, to discuss the financial statements for the Project and the Borrower's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Borrower, unless the Borrower shall otherwise agree.

27 4.01 a. The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound applicable technical, financial, business, and development practices.

b. In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement.

Fully complied with Item (a) The project manuals provide steps to ensure due diligence and efficiency of subprojects, and compliance with technical and financial standards. Procurement post-review have been conducted for both Program and Subproject Procurements for the years 2014–2018 in accordance with ADB Procurement Post Review Guidelines and found general compliance with the approved procurement procedures. Field visit reports during implementation supervision mission indicate that there is compliance with sound technical, financial, business and development practices. Item (b) covers safeguards implementation which is fully complied with.

28 4.03 a. Whenever applicable, in the carrying out of the Project, the Borrower through the Project EA shall cause competent and qualified consultants and contractors, acceptable to ADB to be employed to an extent and upon terms and conditions satisfactory to the Borrower and ADB.

Fully complied with Item (a) – ADB reviewed the TORs of all consultants and approved their hiring under the loan. Contracts procured through the community

bidding process (with threshold of ₱2 million for

works and ₱1 million for goods as provided for in

Appendix 8 89

Schedule Para. No. Description Remarks/Issues b. The Borrower shall cause the Project to be carried out in

accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and ADB, as applicable. Promptly upon ADB’s request, the Borrower through the Project EA shall furnish, or cause to be furnished, to ADB, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

the Community Based Procurement Manual) undergo prior review by the RPMO and the NPMO. Item (b) - Please see response to para 4, Schedule 5 (page 1). Project implementation follows the KC-NCDDP manuals approved by ADB, which prescribe standards and procedures for community subproject implementation.

ACT = Area Coordinating Team, ADB = Asian Development Bank, AP =affected person, APFS = audited project financial statement, CBIM = Community Based Infrastructure Manual, CNC = certificates of non-coverage, DepEd = Department of Education, DOH = Department of Health, DPWH = Department of Public Works and Highways, DSWD = Department of Social Welfare and Development, EA = executing agency, EARF = environmental assessment and review framework, ECC= environmental compliance certificate, EMB = Environmental Management Bureau, EMP = environmental management plan, EPMS = Electronic Procurement Monitoring System, ESMP = environmental and social management plan, FY = fiscal year, GAP = gender action plan, GRS = grievance redress system, KC-NDDP = Kapit-bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social Services National Community-Driven Development Project, IA = implementing agency, ICB = international competitive bidding, IEE= initial environmental examination, IO = infrastructure officer, IP = indigenous peoples, IPP = indigenous peoples plan, IPPF = indigenous peoples planning framework, LGU = local government unit, NIAPIT = National Interagency Preparatory and Implementation Team , NCB = national competitive bidding, NOL = no-objection letter, NPMO = National Program Management Office , NWRB = National Water Resource Board, O&M = operation and maintenance, PAM = project and administration manual, Q = quarter, RF = resettlement framework, RP = resettlement plan, RPMO = Regional Program Management Office, SMR = safeguards monitoring report, SPS = Safeguard Policy Statement, SRRMO = sub-regional program management office. a ADB. Philippines and ADB. b ADB. Anticorruption and Integrity. Source: Asian Development Bank.

90 Appendix 9

STATUS OF COMPLIANCE WITH GRANT COVENANTS

Schedule Para. No. Description Remarks/Issues 1 4 1 If ADB determines that an amount of the TYMTF Grant has

been used in a manner inconsistent with the provisions of this Grant Agreement, the Recipient, shall upon notice by AD to the Recipient, promptly refund such amount to ADB. Except as ADB may otherwise determine, ADB shall cancel al amounts refunded pursuant to this provision.

Fully complied with. Funds related to fraudulent transactions are charged against government funds. The DSWD returned all unused funds to ADB.

2 4 2 Implementation Arrangements The Recipient shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Recipient and ADB. In the event of any discrepancy between the PAM and the Grant Agreement, the provisions of the Grant Agreement shall prevail.

Fully complied with

3 4 3 The Recipient, through the EA, will ensure that the IAs are equipped with appropriately skilled staff, reasonable office space, equipment, and adequate financial resources required for implementation of the Project throughout Project implementation.

Fully complied with The EA recruit staff at the NPMO, RPMO, SRPMO and ACT in accordance with qualification standards set by KC-NCDDP. The EA provides financial resources to NPMO and RPMOs based on approved work and financial plans supporting Project implementation.

4 4 4 The Recipient, through the EA, shall ensure that all Works under the Project are designed and constructed in accordance with all relevant national, municipal and local design codes and standards of the Recipient and that the construction supervision, quality control, contract management, and completion inspection and acceptance procedures will be in accordance with all applicable laws, municipal and local regulations of the Recipient.

Fully complied with The KC-NCDDP subprojects are implemented pursuant to the Community Based Infrastructure manual. It adopted relevant and applicable design standards from concerned government agencies: (i) DPWH - roads and bridges (ii) NWRB - water supply subprojects

(standards set in NWRB’s Water Supply Design Manual)

(iii) DepEd and DPWH - school buildings (iv) DSWD - daycare centers (standards

and basic amenities) (v) DOH - barangay health stations

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Schedule Para. No. Description Remarks/Issues For other community subprojects or any adjustment in the design standards, the RPMO Regional Infrastructure Specialists and CIO and the NPMO IO shall develop appropriate design and quality control standards to be used, which are based on acceptable engineering standards. Construction supervision, quality control, contract management, and completion inspection and acceptance procedures are included in the CBIM in accordance with applicable laws and regulations.

5 4 5 The Recipient, through the EA, shall ensure that adequate funding and human resources are allocated so that Project facilities are maintained and operated in good condition, and in strict conformity with all applicable laws, regulations and standards of the Recipient.

Fully complied with Proposals of subprojects include sustainability or O&M plan which are implemented by the Associations. An MPA among DSWD, LGU and Association is also executed per subproject to indicate the responsibility of the stakeholders in operating and maintaining the subproject. Sustainability Evaluation is also conducted by Multi-Stakeholders Inspectorate Team 6 months after completion and every year thereafter, to ensure functionality of the turned over subprojects.

6 4 6 For purposes of Output 1, the Recipient through the EA shall

make grants to beneficiaries to carry out the Subprojects in accordance with the selection and other criteria and procedure and on terms and conditions set forth in the PAM, including: a. A Subproject may be selected only if it is a livelihood and

economic support community development project that is technically, financially and environmentally viable, and socially and economically justified.

b. A Subproject shall not include expenditures for any of the activities or items set out in Appendix 5 of the SPS or included in the negative list of activities that may be harmful to the environment or indigenous peoples as

Fully complied with The grants were provided to beneficiaries for subprojects that were selected and approved based on the agreed criteria and procedures.

92 Appendix 9

Schedule Para. No. Description Remarks/Issues detailed in the PAM (such negative list not to be amended or revised without ADB’s consent).

c. A grant to a Beneficiary may be approved only if such Beneficiary: (i) has prepared an IEE and an EMMP in accordance with the principles set forth in the EARF, in the event that the environmental screening carried out in accordance with the EARF concludes that an IEE and EMMP are required; (ii) has prepared an RP in accordance with the principles set forth in the RF, in the event the screening carried out in accordance with the RF concludes that an RP is required; and (iii) has carried out consultations with and a process of informed participation by indigenous peoples, in accordance with principles set forth in the IPPF, in the event that the Subproject impacts such people and to ensure that the design and implementation of the Subproject adequately addresses the needs and cultural preferences of such people.

d. In respect of each grant to a Beneficiary for a Subproject, the Recipient shall ensure that all relevant Beneficiary executes and delivers a Barangay Subproject Implementation Agreement with the parties thereto prior to the release of any funds forming part of such grant to the Beneficiary. In this regard, the Recipient shall ensure that the EA and RPMOs follow the procedure set out in the Project Manuals regarding the conditions for fund release, including the requirement for RPMOs to review the accuracy, completeness and validity of a request for funds release and its accompanying documents (which includes an executed copy of the associated Barangay Subproject Implementation Agreement). Each Barangay Subproject Implementation Agreement shall include provisions where the Recipient obtains rights adequate to protect the interests of the Recipient and ADB, including without limitation the rights to: (i) require the Beneficiary to carry out each of its Subprojects with due diligence and efficiency and in accordance with sound technical, financial, managerial, social and environmental standards and practices, and to maintain adequate records; (ii) require the Beneficiary to have in place prior to approval

Appendix 9 93

Schedule Para. No. Description Remarks/Issues of a grant and, thereafter maintain, a barangay sub project management team in accordance with the requirements set out in the PAM; (iii) require that the Works to be financed out of the proceeds of the grant shall be procured in accordance with the Procurement Plan and shall be used exclusively in the carrying out of the Subproject; (iv) require that the Beneficiary implement its EMMP, RP and program of consultation with and informed participation by indigenous peoples, if applicable, in a manner satisfactory to the Recipient and ADB; (v) inspect, by itself or jointly with representatives of ADB such Goods, Works, the sites, plans and construction included in each Subproject, the operation thereof and any relevant records and documents; (vi) require that the Beneficiary provide to the Recipient and ADB with all such information as the Recipient or ADB may reasonably request relating to the foregoing and to the administration, operations and financial condition of the Beneficiary and to the benefits to be derived from its respective Subprojects; (vii) require the Beneficiary to: (A) establish and maintain a financial management system, including records and accounts, and prepare financial reports in a format acceptable to the Recipient and ADB, adequate to reflect the operations, resources and expenditures related to each of its Subprojects; and (B) have the records, accounts and financial reports referred to in clause (A) above for each fiscal year audited, in accordance with auditing standards acceptable to the Recipient and ADB, consistently applied, by independent auditors acceptable to ADB; and (viii) suspend or terminate the right of the Beneficiary to the use of the proceeds of the grant upon failure by such Beneficiary to perform its obligations under its Barangay Subproject Implementation Agreement with the Recipient.

7 4 7 Counterpart Support The Recipient, through the EA, shall ensure that counterpart funding is provided in a timely manner. To this end, the Recipient and the EA shall ensure timely preparation and submission of annual budgets and

Fully complied with There is no GOP counterpart for KC-NCDDP AF. There is, however, local counterpart contribution on a per subproject basis. The timing of its preparation and budgeting is in

94 Appendix 9

Schedule Para. No. Description Remarks/Issues requests for disbursement of counterpart funds necessary for Project implementation (including for land acquisition and resettlement activities) and take all measures necessary or appropriate for the prompt disbursement of such funds.

accordance with their respective CEAC timeline.

8 4 8 Environment The Recipient, through the EA, shall ensure that the preparation, design, construction, implementation, operation and decommissioning of each Subproject and all Project facilities comply with: a. all applicable laws and regulations of the Recipient

relating to environment, health, and safety; b. the Environmental Safeguards; c. the EARF; and d. all measures and requirements set forth in the

respective IEE and EMP, and any corrective or preventative actions set forth in an SMR.

Fully complied with Items (a) to (c) are fully complied with the EIS and ESMF through the ESSC and ESMP implementation and monitoring. As of May 2018, the EA has not reported any category B L&E subproject supported by the grant. The ESMF was developed and prepared to guide project staff in complying with the environmental and social safeguards requirements for all subprojects. It was finalized and issued a No Objection Letter from ADB on 29 January 2015.

9 4 9 Land Acquisition and Involuntary Resettlement The Recipient, through the EA, shall ensure that all land and any rights-of-way required for each Subproject and all Project facilities are made available (including making the same available to the Works contractor if applicable), in accordance with the schedule agreed under the related Works contract if applicable, and any land acquisition and resettlement activities are implemented in compliance with: a. all applicable laws and regulations of the Recipient

relating to land acquisition and involuntary resettlement; b. the Involuntary Resettlement Safeguards; c. the RF; and d. all measures and requirements set forth in the

respective RP, and any corrective or preventative actions set forth in an SMR.

Fully complied with No involuntary resettlement issues were reported to NPMO for L&E subprojects. Items (a)-(c) are fully complied with. On item (d), the EA has not reported any category B subproject.

10 4 10 Without limiting the application of the Involuntary Resettlement Safeguards, the RF or the RP, the Recipient, through the EA, shall ensure that no physical or economic displacement takes place in connection with the Subprojects until:

Fully complied with Physical displacement was noted during the field visit in Barangay Mahilum, Calatrava, Negros Occidental in Region VI where 2 APs relocated in place sans documentation on the

Appendix 9 95

Schedule Para. No. Description Remarks/Issues a. compensation and other entitlements have been

provided to affected people in accordance with the RP; and

b. a comprehensive income and livelihood restoration program has been established in accordance with the RP.

arrangement between LGU, landowner and affected person. While assistance was provided by the LGU and the new abode is better than the previous, ADB requested NPMO for LARR DOD sample documentation across Luzon, Visayas, and Mindanao that reflect losses and agreements which was sent on 20 June 2018; documentation on "waived" subprojects were also provided. Specific to the 2 above cases in Calatrava, documentation through the SMR (submitted on 20 August 2018) is necessary to capture (i) entitlements extended the APs in accordance with the Resettlement Framework; (ii) AP satisfaction and improvements in well-being compared to pre-project levels, and (iii) formal agreement acceptable to all parties that safeguard the interests and economic well-being of the APs.

11 4 11 IPs The Recipient, through the EA, shall ensure that the preparation, design, construction, implementation and operation of the Project, each Subproject and all Project facilities comply with: a. all applicable laws and regulations of the Recipient

relating to IPs; b. the IP Safeguards; c. the IPPF; and d. all measures and requirements set forth in the

respective IPP, and any corrective or preventative actions set forth in an SMR.

Fully complied with Items (a)-(c) are fully complied with. For item (d), the EA has not reported any category B subprojects for which an IPP should be prepared. The EA had submitted to ADB an external monitoring report on IP safeguards (for midterm), which aims to evaluate KC-NCDDP’s compliance with established IP safeguards. The EA reported that the external monitoring covered the subproject proposals reviewed by ADB to validate the findings and determine if corrective measures, if any, had been undertaken. The Midterm and Final IP External Monitoring Report is already submitted to ADB for disclosure.

96 Appendix 9

Schedule Para. No. Description Remarks/Issues 12 4 12 Human and Financial Resources to Implement

Safeguards Requirements The Recipient shall make available or cause the EA to make available necessary budgetary and human resources to fully implement the EMP, the RP and the IPP.

Fully complied with Resources for the implementation of the ESMPs are covered by the community grant and funding from the barangay local government unit. LGU covers the admin and O&M cost. The program of works covers a portion of the cost of mitigation.

13 4 13 Safeguards – Related Provisions in Bidding Documents and Works Contracts The Recipient shall ensure or cause the EA to ensure that all bidding documents and contracts for Works where applicable contain provisions that require contractors to: a. comply with the measures relevant to the contractor set

forth in the IEE, the EMP, the RP and the IPP (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in a SMR;

b. make available a budget for all such environmental and social measures;

c. provide the Recipient with a written notice of any unanticipated environmental, resettlement or IPs risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP and the IPP

d. adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and

e. reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.

Fully complied with Provisions in the Conditions of Contract and Contract Agreement for Works have been amended to include safeguard provisions.

14 4 14 SMR The Recipient shall do the following or cause the EA to do the following: a. submit quarterly SMR to ADB and disclose relevant

information from such reports to affected persons promptly upon submission;

Fully complied with ESMP monitoring and reporting is conducted at the barangay level during the construction phase.

Item (a) – EA submitted semi-annual SMRs for 2014-2018. All SMRs submitted were

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Schedule Para. No. Description Remarks/Issues b. if any unanticipated environmental and/or social risks

and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP and the IPP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and

c. report any actual or potential breach of compliance with the measures and requirements set forth in the EMP, the RP or the IPP promptly after becoming aware of the breach.

disclosed at the ADB and KC-NCDDP website. Item (b) - No unanticipated impacts were reported to NPMO Item (c) - No breach of compliance reported

15 4 15 Prohibited List of Investments The Recipient shall ensure that no proceeds of the TYMTF Grant are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS.

Fully complied with The prohibited investment activities are also in the negative list of KC-NCDDP which is being used in the identification of subprojects.

16 4 16 Labor Standards The Recipient, through the EA, will ensure that all bidding documents for Works will include provisions to require the contractors to: a. prioritize employment of women and the poor to at least

the percentages of the labor force as set out in the GAP; b. provide equal pay for equal work, regardless of gender,

age, ethnicity or any other factors; c. provide the timely payment of wages; d. maximize the employment of local people who meet the

job and efficiency requirements for project construction, operation and maintenance and in that regard, not discriminate against people based on age, provided they are capable of performing the work;

e. advertise labor requirements in a timely manner prior to recruitment, in a venue that can reasonably be expected to be seen by interested men and women, regardless of age or ethnicity;

f. provide workers with a written contract; g. provide such workers with adequate on-the-job training

and safety training;

Fully complied with Bidding docs for works are not applicable because there are no projects procured through NCB and ICB. L&E subprojects are of small value and are usually procured through community shopping and direct contracting. However, Project is compliant with all items under labor standards. On item (f), there is a written contract for labor procured through shopping for works, direct contracting for works, and “pakyaw contracts”. For other community-based labor, there is no written contract since labor is employed on a daily basis as agreed upon in barangay assemblies.

98 Appendix 9

Schedule Para. No. Description Remarks/Issues h. comply with core labor standards and the applicable

labor laws and regulations, including stipulations related to employment;

i. not employ child labor; and maintain records of labor employment (including the name, ethnicity, age, gender, working time and payment of wages) and ensure that such records are included in summary form in the project performance management system.

17 4 17 Gender The Government, through the EA will ensure that the GAP is fully implemented and that all Project activities are designed and implemented in accordance with the GAP. Measures will include, but not be limited to the following: a. particular selection of Subprojects will include an

analysis of the needs and benefits of men and women in the criteria for prioritizing community infrastructure to be rehabilitated or developed;

b. separate meetings with marginalized households, including women, where needed, to discuss Subproject proposals and all meetings held at times and in locations convenient for women;

c. increasing women in leadership positions in volunteer committees to 50% by end of the Project (baseline of 35% in 2012);

d. between 20% to 30% of the paid labor jobs created by the Project are provided to women at the end of the Project;

e. the Operations and Maintenance plan for the Project provides at least 30% paid work to women;

f. 50% of the participants in overall community based capacity development programs under the Project are women;

g. gender mainstreaming responsibilities are included in the terms of references and performance targets of project management officers;

h. all Project staff undergo gender training; and i. gender indicators are integrated in the overall M&E

framework.

Not fully complied with The GAP implementation progress report for Q3 2017 reflects the detailed accomplishment of gender actions/targets. Of the 31 actions/targets (formerly 29 and now includes 2 DMF targets), 29 have already been achieved. The remaining two unachieved are: (i) the O&M plan for the Project provides at least 30% paid work for women, and (ii) study on effectiveness including a review of gender equality dimensions. The study on effectiveness is to be completed by end 2020.

Appendix 9 99

Schedule Para. No. Description Remarks/Issues 18 4 18 Governance and Anticorruption

The Recipient shall, and shall cause the EA and IAs to, comply with ADB’s Anticorruption Policy (1998, as amended from time to time). The Recipient: a. acknowledges ADB's right to investigate, directly or

through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the project; and

b. agrees to cooperate, and will cause the EA, IAs, and all other government offices, organizations and entities involved in implementing the Project to cooperate fully with any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation.

In particular, the Recipient, through the EA, shall ensure that: a. periodic inspections of the Project contractors’ activities

related to fund withdrawals and settlements are carried out;

b. relevant provisions of ADB’s Anticorruption Policy are included in all bidding documents for the project; and

c. contracts, financed under the Project include provisions specifying the right of ADB to audit and examine the records and accounts of the contractors, suppliers, consultants, and other service providers as they relate to the project.

Individuals/entities on ADB’s anticorruption debarment lists are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.

Fully complied with Items (a) and (b), ADB’s right to investigate- Copies of vouchers and other documents in relation to expenses charged from the loan being provided to ADB upon request. Item (a), inspection of contractor’s activities related to fund withdrawals and settlements – majority of contracts are small in value partaking of contracts procured through shopping and direct contracting. Items (b) and (c), ADB’s Anticorruption Policy in bidding documents and right to audit and examine records- The Conditions of Contract for Goods and Works under the CBPM include the appropriate provisions of ADB’s Anti-Corruption Policy. This is also included in the Request for Quotation, Purchase Order, Contract Agreement for Program and Subproject Procurement as of November 2017. In line with and supplementing the ADB Anti-Corruption Debarment List, the Project had its own blacklisting and suspension procedures for contractors and suppliers, which include those in the government blacklist. Post sampling review was conducted and none of the contractors or suppliers were found to be on the government blacklist nor ADB’s sanctions list, and likely due to the size and nature of the contracts for sub-projects none had prior contracts with ADB or other multilateral development banks.

19 4 19 If the Recipient or ADB is or becomes aware or has a reasonable suspicion that any member of the EA or an IA has engaged in corrupt or fraudulent practices (as defined

Fully complied with

100 Appendix 9

Schedule Para. No. Description Remarks/Issues in ADB’s Anticorruption Policy (1998 as amended to date)) under or in connection with the project or the TYMTF Grant, the Recipient will take such timely and appropriate action satisfactory to ADB to investigate and/or remedy the situation.

Allegations of fraud have been reported to ADB, investigated by the EA and remedied appropriately.

20 4 20 In addition to these requirements, to deter corruption and increase transparency, the Recipient shall use its existing website for the Project, accessible by the general public, to disclose various information concerning the Project including general information about the Project, public procurements related to the Project under Output 2 and 3 of the Project (as described in paragraphs 2(b) and (c) of Schedule 1), Project progress and contact details in English. The website shall also provide a link to ADB’s Integrity Unit b for reporting to ADB any grievances or allegations of corrupt practices arising out of the Project and Project activities. For each contract procured by the EA under Outputs 2 and 3 of the Project using NCB procedures, shopping and consulting services, the website shall include information on, among others the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded and the list of goods/services, including consulting services, procured. The website shall be updated within 2 weeks after: (i) each award of contract, and (ii) each submission of the semi-annual Safeguards Monitoring Report to ADB. In addition, the Recipient shall cause the EA to post detailed information on community procurements under Output 1 on public notice boards in concerned barangays. For any contract procured under the Project, the Recipient shall cause the EA to permit any bidder to request an explanation as to why a bid was unsuccessful and the EA shall respond within 20 working days.

Fully complied with The EA’s KC-NCDDP website has web link to the ADB Philippines Country Office website a which provides link to ADB’s Integrity Unit thru Fraud and Corruption button. The EA maintains a Procurement website that contains information on contracts under Outputs 2 and 3. Under Outputs 2 and 3, there are no contracts procured through NCB and contracts procured through shopping are below the thresholds provided under the approved KC-NCDDP procurement plan.

The newly developed EPMS includes all the required data as specified for Program and Subproject Procurement. This is expected to be fully functional by February 2018. Community procurements are posted in public notice boards within the community and adjacent communities. Contractors or suppliers requesting an explanation as to why a bid was unsuccessful can course such request through the GRS under the Project, which takes care of all complaints including those involving procurement-related matters.

21 Article IV Sec.4.01 In the carrying out of the Project and operation of the Project facilities, the Recipient shall perform, or cause to be performed, all obligations set forth in Schedule 4 to this Grant Agreement.

Fully complied with

Appendix 9 101

Schedule Para. No. Description Remarks/Issues 22 Article IV Sec. 4.02 a. The Recipient through the EA shall (i) maintain separate

accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors’ opinion on the financial statements, use of the TYMTF Grant proceeds and compliance with the financial covenants of this Grant Agreement as well as on the use of the procedures for imprest fund(s) and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request.

b. ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website.

c. The Recipient shall enable ADB, upon ADB's request, to discuss the financial statements for the Project and the Recipient's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Recipient unless the Recipient shall otherwise agree.

Fully complied with The EA submitted to ADB APFS for FY 2016-2018 and disclosed in ADB website.

102 Appendix 9

Schedule Para. No. Description Remarks/Issues 23 Article IV Sec 4.03 The Recipient shall enable ADB's representatives to inspect

the Project, the Goods and Works, and any relevant records and documents

Fully complied with The ADB mission conducted a field visit from 5-9 November 2017 and 6-8 June 2018 to review L&E subprojects in Barangay Magsaysay in the Municipality of Sevilla in Bohol and in Barangay Mahilum in the Municipality of Calatrava in Negros Occidental, respectively. The concerned RPMOs organized and facilitated the said field visits.

24 Article IV Sec 4.04 The Recipient acknowledges and agrees that this Grant Agreement is entered into by ADB, not in its individual capacity, but as grant administrator for the TYMTF. Accordingly, the Recipient agrees that (i) it may only withdraw TYMTF Grant proceeds to the extent that ADB has received proceeds for the TYMTF Grant from the TYMTF, and (ii) that ADB does not assume any obligations or responsibilities of the TYMTF in respect of the Project or the TYMTF Grant other than those set out in this Grant Agreement.

Fully complied with

ADB = Asian Development Bank, AF = additional financing, AP =affected person, APFS = Audited project financial statement, CBIM = Community Based Infrastructure Manual, CEAC = Community Empowerment Activity Cycle, CIO Community Infrastructure Officer, DepEd = Department of Education, DMF = design and monitoring framework, DOH = Department of Health, DPWH = Department of Public Works and Highways, DSWD = Department of Social Welfare and Development, EA = executing agency, EARF = environmental assessment and review framework, EIS = Environmental Impact Statement System, EMP = environmental management plan, EPMS = Electronic Procurement Monitoring System, ESMF = environmental and social management framework, ESMP = environmental and social management plan, ESSC = environmental and social screening checklist, FY = fiscal year, GOP = government of the Philippines, GRS = grievance redress system, ICB = international competitive bidding, IEE = initial environmental evaluation, IP = indigenous people, IPPF = indigenous peoples planning framework, KC-NDDP = Kapit-bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social Services National Community-Driven Development Project, LARR DOD = Land Acquisition Resettlement and Rehabilitation Deed of Donation, L&E= livelihood and entrepreneurship, MPA = Mutual Partnership Agreement, M&E = monitoring and evaluation, NCB = national competitive bidding, NWRB = National Water Resource Board, O&M = operations and management, Q = quarter, RF = resettlement framework, RP = resettlement plan, SMR = safeguards monitoring report, SPS = Safeguard Policy Statement, TYMTF = Typhoon Yolanda Multi-Donor Trust Fund. a ADB. Philippines and ADB. b ADB. Anticorruption and Integrity.

Source. Asian Development Ban

Appendix 10 103

ECONOMIC AND FINANCIAL ANALYSIS

I. ECONOMIC RE-EVALUATION 1. This appendix provides an economic re-evaluation of the Kapit-Bisig Laban sa Kahirapan–Comprehensive and Integrated Delivery of Social Services (KALAHI–CIDSS) National Community-Driven Development Project, hereafter referred to as “KC-NCDDP” or ‘the project”.1 It accords with paragraph 2 of the Operations Manual (Operational Procedures) on Economic Analysis of Projects.2 A. Macroeconomic Context 2. The Philippines has recorded positive growth in annual gross domestic product (GDP) since 1999. Growth was at a robust 7.1% in 2013 near the start of the project. However, job generation lagged, with unemployment at 7.5% and underemployment at 19.2% in April 2013. The poverty incidence declined slowly from 40.6% in 1994 to 27.9% by the first half of 2012.The government has emphasized growth that is inclusive, poverty-reducing, and job-creating.3 B. Sector Context 3. Past failure to generate sufficient public revenues has caused under-investment in the social sector and local infrastructure. Social spending in the Philippines has trailed that of its neighbors in the Association of Southeast Asian Nations (ASEAN). Public spending on education was the lowest at 2.7% of GDP in 2009, in contrast with 4.1% on average for the rest of ASEAN. Public spending on health was also low, at 1.3% of GDP in 2010, as against 2.1% for the rest of ASEAN.4 4. However, support for social spending was rising in the period leading up to the initiation of the project. Spending by the national government on social services was 27.9% of the budget in 2004 and rose to 33.8% in 2012.5 In 2013, 34.8% of the national budget was allocated to social services,6 equals to 5.8% of expected 2013 GDP.7 The Department of Social Welfare and Development (DSWD) budget in 2012 was more than seven times its level in 2008, mostly allocated to a conditional cash transfer (CCT) program.8 The CCT program covered 336,000 households in 2008 and expanded 9-fold to 3.1 million in 2012. The 2013 budget for the self-employment assistance program was almost 18 times its 2012 level.

1 KALAHI–CIDSS NCDDP is also the project name used for the overall government program which is supported by

funding from the government budget, World Bank, and Millennium Challenge Corporation. 2 Asian Development Bank (ADB). 2003. Economic and Analysis of Projects. Operations Manual. OM G1/BP. Manila. 3 National Economic and Development Authority. (accessed 29 May 2013). 4 World Bank Open Data (accessed 11 May 2013). The averages exclude Myanmar and the Lao People’s Democratic

Republic, which have no available data. 5 R. Manasan. 2011. Analysis of the President’s Budget for 2012. Discussion Paper Series. No. 2011–20. Makati:

Philippine Institute for Development Studies. 6 President Benigno S. Aquino III. 2012. 2013 Budget Message to Congress. Manila. 7 This still falls short of what is required. Public spending on education and health averaged 6.1% of the GDP in

Indonesia, Malaysia, Thailand, and Viet Nam over 2002–2007. World Bank. 2010. Closing the Gap in Public Spending. Philippines Discussion Notes No. 4. Washington, DC.

8 Government of the Philippines. 2008. Government Appropriations Act. Manila; Government of the Philippines. 2009. Government Appropriations Act. Manila; Government of the Philippines. 2010. Government Appropriations Act. Manila ; Government of the Philippines. 2011. Government Appropriations Act. Manila; Department of Budget and Management (accessed 11 May 2013); and DSWD. Financial Stewardship. (accessed 11 May 2013).

104 Appendix 10

5. As the government’s social spending was rising, the need for more cost-efficient and sustainable infrastructure delivery mechanisms became more urgent. Community-driven development (CDD) as a vehicle under the government KALAHI–CIDSS project, which has been ongoing since 2002, was scaled up under this project from December 2013 to June 2018. International experience has shown the usefulness and effectiveness of CDD in responding to community needs in emergency and post-disaster situations. 6. The project was designed in part to improve the efficiency of government social protection programs. Economies of scale would be gained through the convergence of poverty reduction programs. For example, basic village infrastructure built under the project was to support human capital development to increase economic activity and improve access to health and education services. Clinics and school buildings support activities funded through the CCT program. CDD is a cost-effective mechanism to meet urgent community needs following disasters, particularly for rehabilitating and rebuilding rural infrastructure.9 It lightens the immediate burden on local governments that have many demands on them during such situations. The project provided this kind of support in disaster situations. 7. The project responded to post-disaster recovery and rehabilitation needs of communities severely affected by Typhoon Yolanda. Preliminary government estimates indicated that Typhoon Yolanda and other recent natural calamities may have cut the national economic growth rate by 0.3 to 0.8 percentage points in the fourth quarter of 2013, which would be equivalent to $900 million to $2.5 billion in lost GDP in 2013. ADB’s preliminary forecast for 2014 was that the drop in the growth rate could be as high as 1 percentage point, which was accurate with a drop of growth rate to 6.1% that year. C. Demand Analysis 8. Inadequate infrastructure is a critical development constraint. Public spending on infrastructure was insufficient in the years prior to project implementation at about 2% of annual GDP, below the World Bank benchmark of 5% for middle-income countries. Demand for more infrastructure and basic services was robust considering the scarcity of provision.10 About 18.6% of the population lacked safe water. Local roads were insufficient, with only 7% of barangay (village) roads being paved at the time. More than 10,000 additional classrooms were needed for basic education. Less than half of barangays had health stations. Rehabilitation of infrastructure is needed frequently as the country is hit by 20 typhoons every year and they have become increasingly more destructive. D. Program Rationale 9. Extending the reach of basic services was vital, as limited access to basic services is a major cause of Philippine poverty.11 The intent of the project was to build community infrastructure in the poorest municipalities using CDD, including those that were adversely affected by disasters.

9 L. Campeau. 2007. Aceh and Nias, Indonesia: Results Achieved using Community Reconstruction following the

Tsunami-Disaster in December 2004. Sourcebook on Emerging Good Practice on Managing for Development Results, 2nd Edition. Washington DC: World Bank; and World Bank. 2012. MDF-JRF Knowledge Notes: Lessons Learned from Post-Disaster Reconstruction in Indonesia. Jakarta, Indonesia: World Bank.

10 Annual CDD investments average only 2.0% of the national government infrastructure budget and 0.3% of the total national government budget.

11 ADB. 2009. Diagnosing the Philippine Economy: Toward Inclusive Growth. Manila; ADB. 2007. Philippines: Critical Development Constraints. Manila; and A. Balisacan. 2007. Local Growth and Poverty Reduction. In A. Balisacan and H. Hill, eds. The Dynamics of Regional Development: The Philippines in East Asia. Cheltenham: Edward Elgar.

Appendix 10 105

10. In a post disaster context, CDD is an appropriate modality for the disbursement of recovery grants and loans. Within a few months of the disaster, in utilizing the CDD modality, hundreds of communities were identified, immediate needs prioritized, village project implementation groups appointed, funds managed, goods procured, and construct of basic village infrastructure undertaken (footnote 8). E. Project Costs 11. At appraisal the project cost was estimated at $663.8 million of which $372.1 was financed by ADB. The government provided $291.7 million in counterpart funding. Additional financing under the Typhoon Yolanda Multi-Donor Trust Fund provided $5 million with the government contributing $0.5 million. 12. At project completion, the total project cost amounted to $546 million, of which ADB financed 60.1% which was mostly in the form of a loan along with a grant of $3.3 million. The government provided 39.9%. The actual cost of the outputs financed by ADB was $48.9 million (13%) lower than estimated as a result of significant exchange rate fluctuations.12 The difference between estimated cost at appraisal and actual cost is accounted for by significantly lower recurrent costs ($71 million) and planning grants provided to communities ($70 million). At financial closing, $47.2 million and $1.7 million were cancelled for the loan and grant, respectively. Details on the total costs for the loan component of the project are in Appendix 3. 13. The average cost of a subproject was approximately $19,000, with 64% costing below $20,000. A very small percentage (0.5%) cost more than $100,000 (mostly bridges and roads). The most common ADB-funded subprojects consisted of bridges (27%), footpaths (14%), multipurpose halls (16%), roads (8%), and day care centers (7%). F. Economic Internal Rates of Return 14. An economic internal rate of return (EIRR) was not estimated at appraisal.13 However, one was calculated by a consulting firm in 2016 based on a set of KC-NCDDP subprojects funded by the DSWD, World Bank, and Millennium Challenge Corporation, and implemented between 2014 and 2015.14 These subprojects were similar to those funded by ADB but do not include livelihood type subprojects, which were supported under the additional financing. EIRR and a benefit-cost ratio (BCR) were computed for 100 randomly selected subprojects of the eight most common subproject types.15 The EIRR was above 12% (ADB’s benchmark) for all types of projects except day care centers. 15. The same study shows a 5% reduction in travel time to access services and facilities due to subprojects supporting access roads, footpaths and new social service facilities. Project reports also show the high number of public access and basic service infrastructure from the project: 5,831 access roads and bridges for 1.3 million households; 722 day care centers for 142,507 households; 547 health centers for 135,000 households; and 1,063 schools for 493,103 households. Table A9.1 summarizes the computed EIRR, net present value and BCR estimates for the subproject evaluated.

12 At appraisal, the Philippine peso was at ₱40.62: $1. At completion, this was ₱53.00: $1. 13 This is typical of CDD projects as subprojects are not ex-ante identified. 14 World Bank. 2016. Technical Assessment and Economic Analysis for the Kalahi-CIDSS National Community-Driven

Development Project, Philippines. Manila. 15 A discount rate of 10% was used to compute the BCR.

106 Appendix 10

Table A9.1: Economic Internal Rate of Return and Benefit-Cost Ratio Calculation per Subproject Type

Subproject Type EIRR (%) NPV BCR Access roads 37.7 3.18 M 1.9

Barangay health stations 35.0 1.82 M 2.2

School buildings 15.3 551,884 1.2

Drainage canals 15.1 335,229 1.2

Day care centers 8.2 (97,192) 0.9

Potable water system 13.1 365,495 1.1

Flood control/slope protection/river control 31.4 2.31M 1.7

Footpaths 15.1 257,066 1.2

BCR = benefit-cost ratio, EIRR = economic internal rate of return, M = million, NPV = net present value. Source: World Bank.

16. A sensitivity analysis indicates that the EIRR estimates vary widely depending on the subproject type. The viability of subprojects is sensitive to possible changes in operation and maintenance costs and in benefits. The scenarios include a 20% increase in operation and maintenance costs, a 20% decrease in benefits, and a simultaneous 20% increase in costs and decrease in benefits. Results of this sensitivity analysis are in Table A9.3.

Table A9.2: Results of the Sensitivity Analysis

Subproject Type

EIRR (%)

Base Case 20% Increase O&M Costs

20% Decrease in Benefits Both

Access roads 37.7 35.4 26.8 24.1

Barangay health stations 35.0 33.8 26.5 25.2

School buildings 15.3 13.6 9.4 7.3

Drainage canals 15.1 12.1 7.5 3.4

Day care centers 8.2 6.2 2.8 0.1

Potable water system 13.1 10.9 6.8 3.9

Flood control/slope protection/river control 31.4 29.1 21.7 18.8 Footpaths 15.1 12.9 8.7 6.1

EIRR = economic internal rate of return, O&M = operation and maintenance. Source: World Bank.

G. Distribution of Program Effects 17. The groups that gained most from the project were poor households in terms of income, consumption, and employment; children through improved access to schools; and women enjoying higher workforce participation and increased access to child care facilities and mother and child care at health stations. The project targeted poor households but also non-poor households who were in highly impacted zones from Typhoon Yolanda.16

16 KC-NCDDP beneficiary municipalities underwent multiple rounds of targeting using national poverty data and a

process of social analysis to determine the poorest municipalities. For disaster response operations modality (DROM) grants, there was a fixed criteria for targeting disaster-affected barangays: (i) population of the barangay (using the results of the latest census—20%); (ii) poverty incidence (to be generated from the DSWD National Household Targeting System for Poverty Reduction—30%), and; (iii) extent of damage as measured by the percentage of damaged households—50%. Grants were allocated based on the severity of damages. Beneficiaries of subprojects

Appendix 10 107

18. The project benefited 493,100 students by building and repairing classrooms damaged by the typhoon. Almost half (49.5%) of the students were female. Likewise, the construction of 744 water systems benefitted 152,232 households. The project improved sanitation facilities for 17,000 households. There was a high level of involvement and participation of both men and women from households in the planning, implementation, and operation of the subprojects. Of the 371,341 workers hired by the project, 63% were women. A study on the utilization of services and basic infrastructure is currently ongoing. 19. The financial sustainability of the KC-NCDDP will depend on the government’s commitment (local and national), the fiscal space to fund it, and the people’s capacity to engage their government at local level.

II. FINANCIAL SUSTAINABILITY 20. The financial sustainability of the KC-NCDDP will depend on the government’s commitment (local and national), the fiscal space to fund it, and the people’s capacity to engage their government at local level. A. Government and Local Commitment 21. The Government of the Philippines aims to lower poverty incidence from the present 21% to 14% by 2022.17 The DSWD and NCDDP have been identified as among the successful agencies and programs that contribute to poverty reduction. The KC-NCDDP has been able to generate significant buy-in from local government units (LGUs), community-based organizations and villagers through their counterpart contributions in cash and kind, and their willingness to continuously support O&M for all the subprojects, through memoranda of agreement among the DSWD, local governments and villagers. The LGU commitment to sustain project interventions are covered by these memoranda of agreement. B. Fiscal Space 22. The outlook for the medium-term was steady since healthy GDP growth, a fixed and manageable ratio of fiscal deficit to GDP, and a falling ratio of debt to GDP were expected before the COVID-19 pandemic hit. In the short-term, GDP growth is likely to be lowered substantially due to the lockdowns caused by the pandemic. These decreases in expected GDP growth will reduce the fiscal space for the government. Nevertheless, the national government debt burden has been falling over the past decade. While this trend will also be impacted by the current crisis, it does provide some buffer in terms of fiscal space for needed expenditures. Tax effort at 14.7% of GDP in 2018 was the highest achieved in the past 20 years. Tax collection from the Tax Reform for Acceleration and Inclusion reform law that year was 108% of the target.18 Revenue effort has been rising steadily over the years, from 13.8% of GDP in 2004, peaking so far at 16.4% in 2018.19 23. The KC-NCDDP will be largely financed by local governments as they are mandated to provide basic infrastructure and services. A recent Supreme Court decision in July 2018 has increased budget allocations of local governments to cover all sources of revenues of the

are selected by the community and priority is given to households that suffered the most severe damage or losses, are poor, or marginalized (women, elderly, persons with disability, indigenous peoples).

17 National Economic and Development Authority. 2016. Philippine Development Plan, 2016-2022. Pasig City. 18 Department of Finance. 2019. We are Building Momentum. Presentation of Secretary of Finance Carlos Dominguez

III at the Philippine Day Forum. Washington D.C. 19 Bureau of Treasury. 2018. National Government Cash Operations Report. Manila.

108 Appendix 10

government. The share of local governments from national revenues remains at 40% revenues, but the source has been expanded to all internal revenues and national taxes collected by the government, including collections for customs, excise, and value-added taxes. This translates to an increase of approximately $6 billion per year for local development. This will contribute to the ability of LGUs to finance CDD- type operations and the O&M of subprojects.

24. The ability of villagers to engage local and national governments for local development will determine the allocation of resources. With government’s willingness to undertake participatory planning, and available fiscal space, and the Project’s contribution to enhance people’s capacity, basic skills and confidence to enable this to happen, the building blocks for sustaining the CDD-approaches for local development are in place for .

Appendix 11 109

Figure A10.1a: Projection and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

Source: Asian Development Bank.

CONTRACT AWARDS OF ADB LOAN AND GRANT PROCEEDS

Table A10.1a: Annual and Cumulative Contract Awards of ADB Loan Proceeds

($ million) Annual Contract Awards Cumulative Contract Awards

Year Amount

($ million) % of Total Amount

($ million) % of Total 2014 0.29 0.10 0.29 0.10 2015 170.73 52.60 171.02 52.60 2016 27.67 8.50 198.68 61.20 2017 69.78 21.50 268.47 82.60 2018 56.41 17.40 324.88 100.00 Total 324.88 100.00 324.88 100.00

ADB = Asian Development Bank. Source: Asian Development Bank.

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2014 2015 2016 2017 2018

Projected Actual

110 Appendix 11

Figure A10.1b: Projection and Cumulative Contract Awards of ADB Grant Proceeds ($ million)

Source: Asian Development Bank.

Table A10.1b: Annual and Cumulative Contract Awards of ADB Grant Proceeds ($ million)

Annual Contract Awards Cumulative Contract Awards

Year Amount

($ million) % of Total Amount

($ million) % of Total 2016 0.07 2.00 0.07 2.00 2017 3.23 98.00 3.30 100.00 2018 0.00 0.00 3.30 100.00 Total 3.30 100.00

Source: Asian Development Bank.

Table A10.2: List of Contract Awards and Disbursement Projections Version Date Comment

1 11 May 2016 Project Effectiveness 2 31 December 2016 Actualized (annual) 3 31 December 2017 Actualized (annual) 4 31 December 2018 Actualized (annual) 5 27 August 2019 Adjusted (Project Closing)

Source: Asian Development Bank.

0

1

2

3

4

5

6

2016 2017 2018

Projected Actual