department of the interior and local government development bank of the philippines the (lgu-uwsp)...
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DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
THE
(LGU-UWSP)
THE
(LGU-UWSP)
Project BriefProject Brief
1/26/04 3:27 PM
brief-matl-jan04
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
PROJECT PRINCIPLES
PARTICIPATION CRITERIA
LOAN FEATURES
PARTICIPATING LGUs
PROJECT BACKGROUND
Sequence of PresentationSequence of Presentation
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
Consistent with the intent of the 1991 Local Government Code, Local Government Units are now responsible for planning, financing and implementing both urban and rural water supply.
Water Sector Major PolicyWater Sector Major Policy
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
LGUs are responsible for the implementation of Levels I, II and III;
LWUA is responsible for commercially viable water districts;
MWSS is responsible for Metro Manila and adjacent cities and municipalities;
DPWH and DOH is responsible for providing technical assistance to LGUs; andDILG is responsible for assisting LGUs on institutional development and project identification.
Delineation of ResponsibilitiesDelineation of Responsibilities
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DBP: Borrower of the loan, on-lends the same to LGUs. Responsible for construction supervision through the CSC, fund management and credit evaluationDILG: Marketing of Project to LGUs, ensuring a rolling pipeline of LGU-applicants. Assistance in project preparation particularly the submission of ECC, RDC endorsement and other government clearances and approvals.
DOF: Monitoring lessons learned as input to future policy formulation in the sector
MOA: DOF-DILG-DBPMOA: DOF-DILG-DBP
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Level III - PIPED WATER SYSTEM (HOUSEHOLD
CONNECTIONS)
Level I - point source (shallow well and deep well hand pumps and spring development) Level II - communal faucets or public tap stands
As differentiated from:
Type of ProjectType of Project
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Local Government Units
Water Districts
Private Operators
Target Market of the ProjectTarget Market of the Project
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
1,602
364
TOTAL LGUs
TARGET LGUs
Target LGUsTarget LGUs
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Investments shall be provided based on consumer demand (based on what consumers want and are willing to pay)
Management and operation of the water system shall be according to commercial principles
Tariffs shall be based on full cost recovery
Project PrinciplesProject Principles
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Credit / Loan Technical
AssistanceWORLD BANK
WORLD BANK
LOAN AGREEME
NT
DBP DBP
LGULGU
Funds Source and UseFunds Source and Use
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DBPDBP
SUB-LOAN AGREEME
NT
LGU LGU
Design-Build-Lease of SystemDesign-Build-Lease of System
DBL Document
DESIGN & CONST. CONTRACT
LEASE AGREEMENT
OPERATOR
OPERATOR
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Bids for the design, construction and operation of water supply system are invited only from pre-qualified bidders.
The tariff levels are set in the agreement between the LGU and the operator.
SAFEGUARDS AND BENEFITSSAFEGUARDS AND BENEFITS
Design-Build-Lease of SystemDesign-Build-Lease of System
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
The LGU owns the assets, with the operator leasing them for the period of lease agreement.
SAFEGUARDS AND BENEFITSSAFEGUARDS AND BENEFITS
Before commencing operation of the completed system, the operator must provide performance guarantees to the LGU.
Design-Build-Lease of SystemDesign-Build-Lease of System
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DBPDBP
AMORTIZATION
LEASE FEE
SUB-LOAN AGREEME
NT
LGU LGU
Design-Build-Lease of SystemDesign-Build-Lease of System
DBL Document
DESIGN & CONST. CONTRACT
LEASE AGREEMENT
OPERATOR
OPERATOR
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DBPDBP LGU LGU OPERATOR
OPERATOR
Design-Build-Lease of SystemDesign-Build-Lease of System
LEASE FEE
P100 K
AMORTIZATION
P90 K
EQUITY RECOVERY
P10 K
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
The loan shall be based on the total project cost with at least 10% equity participation, provided, the loan amortization shall not exceed 20% of the total income of the LGU, net of other borrowings
PROJECT FINANCINGPROJECT FINANCING
AMOUNT OF LOANAMOUNT OF LOANFeatures of the Loan to LGUsFeatures of the Loan to LGUs The FS cost is 3% of the total construction
cost. The LGU’s counterpart during FS preparation is in the form of time and services of the members of the Project Management Unit
FEASIBILITY STUDYFEASIBILITY STUDY
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
TOTAL PROJECT COST COMPONENTSTOTAL PROJECT COST COMPONENTS
Feasibility Study Contract Price Physical Contingency Price Contingency Construction Supervision Cost Bank Charges (Interest During
Construction, Commitment Fee & Front-end fee)
Features of the Loan to LGUsFeatures of the Loan to LGUs
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
TERM OF THE LOAN
The maximum term of the loan shall be fifteen (15) years inclusive of three (3) years grace period on principal repayment
INTEREST RATE
9% per annum reviewable yearly but not to exceed 15% p.a.
Features of the Loan to LGUsFeatures of the Loan to LGUs
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
PRE-CONTRACT STAGE LOAN PROCESSING
FEASIBILITY STUDY
BIDDING
CONSTRUCTION OF WATER SYSTEM
OPERATION & MANAGEMENT
Project PhasesProject Phases
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
PRE-CONTRACT STAGE project presentation, submission of
documents by LGU, financial assessment
LOAN PROCESSING loan amount based on borrowing capacity to
cover for FS preparation and construction of water system
FEASIBILITY STUDY deployment of consultants, brgy meetings,
technical option, WTC, preliminary design, BOQ & cost estimates
Project PhasesProject Phases
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
BIDDING publication, pre-qualification, bidding
proper, PBAC resolution of award
CONSTRUCTION OF WATER SYSTEM Notice of award, mobilization, confirmation of
water sources, detailed engineering, construction of water system (source facilities, transmission, distribution lines, etc.)OPERATION & MANAGEMENT
lease agreement
Project PhasesProject Phases
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
6. Quezon, Isabela7. San Mateo, Isabela8. Lantapan, Bukidnon9. Kalilangan, Bukidnon
1. Magdalena, Laguna
2. Aurora, Isabela3. Cabatuan,
Isabela4. Luna, Isabela5. Mallig, Isabela
DBP Approved & Implemented ProjectsDBP Approved & Implemented Projects
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
1. Tabuk, Kalinga2. Calamba, Misamis Occidental3. Lopez Jaena, Misamis
Occidental
1. Castilla, Sorsogon2. Sinacaban, Misamis
Occidental
On-going ConstructionOn-going Construction
For Construction For Construction
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
1. Aurora, Isabela2. Cabatuan, Isabela3. Luna, Isabela4. Mallig, Isabela
For Re-bidding of OperatorFor Re-bidding of Operator 5. Quezon, Isabela
6. San Mateo, Isabela
7. Magdalena, Laguna
1. San Mariano, Isabela2. Carranglan, Nueva
Ecija 3. Claveria, Misamis
Oriental
For BiddingFor Bidding
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Pipeline (For FS Completion)Pipeline (For FS Completion)
1. Maria Aurora, Aurora2. Sto. Niño, Cagayan3. Bolinao, Pangasinan4. Infanta, Pangasinan 5. Sigma, Capiz6. Sta. Cruz, Davao del Sur
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Pipeline (For FS Preparation)Pipeline (For FS Preparation)1. Burgos, Pangasinan
2. Burgos, Ilocos Norte3. Prieto Diaz, Sorsogon 4. Bagamanoc, Catanduanes5. Talugtog, Nueva Ecija6. Palapag, Northern Samar7. Maripipi, Biliran8. Villareal, Western Samar9. Motiong, Samar
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
MAGDALENA, LAGUNA WATER
SYSTEM
Inauguration of Magdalena Water
System
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
LUNA, ISABELA WATER SYSTEM
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
QUEZON, ISABELA WATER SYSTEM
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
2. SB Resolution signifying participation in the project3. SB Resolution authorizing the Mayor and Treasurer to sign loan documents
4. Audited Financial Statements for the last 3 years (2000 to 2002)
5. Bio-data of the Mayor and Treasurer6. Customer Information Report (DBP Form)
1. Letter of Intent signed by the MayorChecklist of RequirementsChecklist of Requirements
7. Certificate of existing loans (term, Outstanding balance, amortization)
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEVELOPMENT BANK OF THE PHILIPPINES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
2. Processing and approval of FS loan by DBP-PMO
3. Creation of Project Management Unit by the LGU4. Sub-loan Agreement Briefing and kick-off meeting with Feasibility Study Consultant
5. Start of FS Preparation
1. Submission of Requirements by the LGU
Action PlanAction Plan
6. Submission of Letter to DBM for transfer of IRA (last quarter 2003)