Support for Strategic Local

Dev’t & Investment Project

Funded by

The World Bank

Objective:

To promote living conditions, public health

standards and the urban environment by providing
upgraded and improved urban infrastructure and
services in line with the Medium-Term Philippine
Development Plan’s strategic focus of eradicating
poverty, good governance and efficient delivery of
basic services.
To facilitate LGUs’ access to viable financing
options to fund the construction, upgrading and
rehabilitation of basic urban and rural infrastructure
facilities.
Fund Source  World Bank

Eligible Borrowers  Provinces

 Cities
 Municipalities
 Infrastructure Utilities
Operator (WD, Electric
Coops, Telecoms)
 Private Sector Group
in Partnership with the
LGU
 L ENDING FACILITIES FOR

LOCAL GOVERNMENT UNITS

LAND BANK OF THE PHILIPPINES

PROGRAM MANAGEMENT DEPARTMENT II
28th Floor, Land Bank Plaza
Malate, Manila, Philippines
Amount of Loan  Based on the requirement
of the project but should
not exceed the Net
Borrowing Capacity (For
LGUs)
 Based on the cash flow, but
not to exceed P500 million
(For utility operators and
private sector)

Interest Rate  1 - 5 yrs 9%

 6 - 10 yrs 10%
 11 - 15 yrs 11%
fixed for the entire term of
loan
Eligible Projects
 Local Roads and Bridges
 Sanitation, Drainage and Flood Control
 Water Supply
 Waste Water or Sewage Treatment Plant
 Public Market & Slaughter Houses
 Hospital
 Schools
 Bus Terminal
 Telecommunication
 Solid Waste Management Projects
 Ports
 Mini Hydro-electric Projects
 Computerization Projects
 Preparation of Feasibility Study
 Conditions for Disbursement

All procurement for the proposed project shall

be carried out in accordance with the
harmonized Procurement Guidelines (World
Bank, ADB, JBIC) and the World Bank
Guidelines on Procurement.
DOCUMENTARY REQUIREMENTS FOR
LGUs:
 Sanggunian Resolution authorizing the local chief
executive to negotiate a loan with LBP
 Approved budget for the current year
 Audited Financial Statement for the past 3 years
 List of elected officials and key officers
 List of priority projects to be funded by the OTLF
 Schedule of IRA for the past 2 years
 Copy of the Municipal Development Plan and Public
Investment Program
 BLGF certification on Net Borrowing Capacity for
current year
 Other standard documentary requirements of LBP
OTHER REQUIREMENTS:
For projects involving construction:
 Project plans and specification
 Cost Estimates
 Bill of Materials
 Work program/schedule duly approved by the local chief
executive and the city/municipal/district engineer

For machineries and equipment acquisition:

 List, description and estimated cost of machineries
and equipment based onprice quotation

 Certification from the dealers/suppliers as to the

availability of spare parts in the local market.
OTHER REQUIREMENTS:

For projects involving construction:

 Environmental Impact Assessment (EIA) Report

and Environmental Compliance Certificate (ECC).
COLLATERAL DOCUMENTS
 Real Estate Mortgage (TCT, Tax Declaration,
Location Plan, Survey Plan, Vicinity Map)
 Chattel Mortgage
 Hold-out on Deposits
 Assignment of the LGU’s regular income
including portion of Internal Revenue Allotment
(IRA) which in no case shall exceed 20% of the
LGU’s regular income
 Assignment of a portion of the LGU’s Internal
Revenue Allotment for the payment of the sub-
loan
Thank You