Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2 (ADB-44253-016)

  • Philippines
Where the impacts of the investment may be experienced.
Specific Location
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 13, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Bureau of Local Government Finance, Department of Finance
The holder of the loan, grant, or other investment.
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Dec 16, 2016

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Project Description

The program supports the government’s commitment to improve service delivery by local government units (LGUs) and represents a long-term partnership between the Asian Development Bank (ADB) and the government. The government’s priorities to improve local service delivery include (i) enhancing LGU access to own-revenue sources, (ii) strengthening public financial management systems, (iii) improving the transparency and accountability of LGUs, and (iv) improving the regulatory framework for intergovernmental fiscal relations.

The project outcome will be efficient and transparent local government financial management systems developed. There are four major outputs which are aligned with the government’s reform priorities. Subprogram 2 includes 26 policy actions (14 triggers and 12 milestones), which were completed from July 2013 to May 2016.

Output 1: Resource framework for fiscal sustainability developed.

Output 2: Public financial management system to assist efficient local government
unit service delivery strengthened.

Output 3: Local governance, transparency, and accountability systems

Output 4: Fiscal framework for inclusive growth created.

Investment Description
  • Asian Development Bank (ADB)

Additional Loan: Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2
Agence Francaise de Developpement US$ 150.00 million

Contact Information

Responsible ADB Officer Responsible
Schuster, Stephen R.
Southeast Asia Department
Public Management, Financial Sector and Trade Division, SERD

Executing Agencies
Department of Finance
DOF Building
Bangko Sentral ng Pilipinas Complex Roxas Blvd., Manila, Philippines


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main