Enabling Environment for Business-Friendly and Competitive LGUs Dir. Anna Liza F. Bonagua Bureau of Local Government Development Department of the Interior and Local Government Building vibrant and resilient local economies comes at the forefront as the most viable solution if we are to achieve development that is pro-poor, sustainable and environmentally sound. Indeed, strengthening local institutions and systems for local economic development (LED) depends on having supportive policies at the national level, and effective leadership and incentives at all levels. The Department of the Interior and Local Government supports LED by pushing for its program of Building Business Friendly and Competitive LGU.

LGUs are Sparkplugs for Local Economic Development The national government has declared that a clear way to achieve robust and long-term growth needed to create jobs and reduce poverty is through the creation of a business-friendly environment. LGUs play a pivotal role in providing the right atmosphere and business climate to encourage investors. Improving the governance landscape of an LGU would serve as strong platform for LGUs to become Sparkplugs for local economic development.

Inclusive Growth and Poverty Reduction PDP Goal, KRA and Strategies Inclusive Growth and Poverty Reduction Integrity of the Environment and Climate Change Adaptation and Mitigation Transparent, Accountable and Participatory Governance Rapid, Inclusive, and Sustained Economic Growth Poverty Reduction and Empowerment of the Poor and Vulnerable Just and Lasting Peace and the Rule of Law Accountable, Transparent, Participative and Effective Local Governance Business-Friendly and Competitive LGs Socially-Protective and Safe LGUs Environment-Protective, Climate Change Adaptive and Disaster-Resilient LGUs

Business-Friendly and Competitive LGUs are vital for livelihood and employment opportunities to flourish, benefitting in the process the residents, especially the poor. The DILG is working on the Tourism and Agri-business sector. For tourism and agri-business, there are already mechanisms in place, where the NGAs converge to support LGUs on its local economic development such as the NCI for agriculture and Nat Economic Transformation Team for Tourism. Discuss briefly the location of interventions and support projects: - Sparkplug LUs which are the priority sites of nNGA programs > DTI-BPLS priority areas (high number of busines establishment) > DOT-identified tourism development sites > NCI-convergence sites > BPO-IT next wave LGUs > LGSP-LED sites

Desired Outcomes for a Business-Friendly and Competitive LGU Updated and approved CLUP/Zoning Ordinance as well as CDPs/sector plans to guide location and focus of investments Structure leading local economic investment and incentive promotion (eg. LGU LEIPOs w/ capacity to perform their LED roles) Local policies and ordinances for business and investment attraction and retention consistent with national investment policies (Local Investment and Incentives Code, Local Revenue Code, Local Tourism , etc) Streamlined transactional services (BPLS, building/construction permits, occupancy permits, sanitation and fire clearances) LGU Roadmap to attract investments and generate employment (ie LGU Business Plan) Active partnership with business sector (implementation of a PPP project) Basic Infrastructure to support local businesses (roads, power, IT support)

Local Economic Development Business Friendly and Competitive LGUs Enabling Environment for BFCL - Creation of Investment Promotion Office (LEIPO / LEDIP) - Formulation of Business Plan - Updating CDP, CLUP, LIIC, LRC - LED Information Portal (SparkBIz) Simplifying Regulatory Systems Streamlining BPLS Streamlining Building/Occupancy Permits Local Infrastructure Support Provincial Road Management Facility (PRMF) Special Local Road Fund (SLRF) KALSADA Projects. Workforce Development Skills Training for Accelerated Growth in Local Government (STAG-LG) The BFCL Outcome Area directly contributes to the Local Economic Development. DILG supports and promotes the business-friendly and competitive LGU condition where LGUs spur sustainable economic and inclusive growth (through tourism development) by engaging business sector, promoting local trade/ businesses and generating employment. This can be attained when LGUs bring about an environment where economic development is possible and sustainable, either through the responsible use of their powers provided them by the Local Government Code, or promoting and implementing programs and projects that boost their economic and business potentials such as reforming their current systems for processing businesses and permits or adopting practices that enable them to attract more businesses such as the creation of LEIPOs An LGU is considered business- friendly and competitive if it has: An updated and approved CLUP/ Zoning Ordinance and CDPs/ sector plans to guide location and focus of investments Investment promotion teams (LEIPO/LEDIP) in charge of local economic investment and incentive promotion Policies/ordinances for investment attraction and retention consistent with national investment policies (LIIC and LRC) Streamlined regulatory services (BPLS, building/construction permits, occupancy permits) An LGU Business Plan to attract investments and generate employment Active partnership with local business sector Basic infrastructure support to local businesses (roads, power, water, etc.)

DILG’s LED Program as a Vehicle for Enabling Environments for BFCL: Local Governance Support Program for Local Economic Development (LGSP-LED): In 2008, the Government of Canada entered an endeavor with the Philippines through the Department of the Interior and Local Government (DILG) to spur local economic growth in strategic locations across the country. The Local Governance Support Program for Local Economic Development or LGSP-LED was established and now serves as one of the Department’s key programs that build business-friendly and competitive LGUs, through innovative approaches and interventions supporting DILG and LGUs. LGSP-LED’s efforts supports DILG’s work on BFCL both at the creation of the enabling environment as well as in providing working models on how BFCL are able to deliver results in terms of jobs and investments. The Batch 3 Provinces: Palawan, Albay, Sorsogon, Negros Occidental, Negros Oriental, Iloilo, Aklan, Antique, Siquijor, Cebu, and Davao del Norte all focused on tourism developmen must take in all the capacity building efforts of the Department and LGSP-LED in creating local business environment that are conducive to investments and job creation. The LED for Tourism approach has allowed LGSP-LED LGUs attracted almost PHP 6 billion in investments and created over 2200 new jobs for their localities, and we at the Department are hopeful that we can replicate these LED successes in our new areas. Mention that BFCL Targets include 106 cities and municipalities from LGSP-LED’s Batch 1, 2, 3 and some Magic 6 LGUs targeted to sustain the gains of the program and become front-runners of Local Economic Development.

Northern Aklan/Antique Program Coverage Batch 3: Tourism Destinations Areas Region V: Legazpi-Donsol Region VI: Northern Aklan/Antique Bacolod-Silay Northern Iloilo Region XI: Samal Island Region IV-B: Northern Palawan Region VII: Dumaguete-Manjuyod Siquijor Northern Cebu Legasi Iloilo/Kalibo Mactan The Local Governance Support Program for Local Economic Development (LGSP-LED) is a program of the Department of the Interior and Local Government (DILG) that supports selected clusters or alliances of local government units (LGUs) in planning and implementing sustainable initiatives for local economic development. The Government of Canada provides financial assistance to LGSP-LED. At the national or central level, DILG works with other national government agencies (NGAs), such as the Department of Tourism (DOT) to develop policies, programs, and services to enable local governance for LED I currently manage projects with 5 LGUs or alliances of LGUs in various parts of the country: Metro Naga Development Council (involving 16 LGUs, including Naga City) in Camarines Sur the Provincial Government of Leyte, with a focus on the Northwest Leyte Tourism Corridor (including Ormoc City) Metro Iloilo-Guimaras Economic Development Council, involving the 7 Iloilo LGUs, including Iloilo City, and the province of Guimaras the Panglao-Dauis-Baclayon Bohol Marine Triangle in the province of Bohol, and the Allah Valley Landscape Development Alliance or AVLDA in Region 12. All five of our current local projects involve tourism development for local economic development, or LED. Davao Target Sites: NBM 118 & Tourism Destination Areas (TDAs)

NETT: Mobilzing National Government Support Batch 3 TDAs LGUs/Alliances/TDAs DA DOLE DILG DOT DTI DPWH DENR As validated by the State of LED report, there is no shortage of supply when it comes to LED support programs and services from NGAs. However, the development and delivery of these programs continues to be fragmented and delivered in isolation from each other. This weak coordination among national agencies poses a tremendous challenge to local governments that have to deal with many agencies for needed resources.   A mechanism for greater NGA coordination, synergy and effective delivery of LED programs is needed in order to maximize resources and minimize overlaps and duplications.

DILG and DOT Leading a Convergence Program for Tourism Joint Memorandum Circular No.2014-001between DILG and DOT, on adopting a convergence program on tourism towards local economic development National Economic Transformation Teams (NETT) for tourism as well as regional or provincial counterparts of these convergence mechanisms are necessary for the actual delivery of the program and services on the ground Local Economic Transformation Teams MOA between DAP-DOT-DILG on the development of the Tourism Guidebook for LGUs as one of the key areas of cooperation of the DOT-DILG JMC No.2014-001 To further DILG is working for a convergence approach to deliver national government programs and services in support of LGU efforts in tourism DOT-DILG Joint Memorandum Circular No.2014-001 - Adopting a Convergence Program on Tourism as a Vehicle Towards Local Economic Development - Highlights the areas of convergence on tourism development planning, standards, accreditation, statistical reports, LGU incentives and alliance building, and establishment of LGU tourism officers. Although the JMC only reflects DOT and DILG as signatories, it still spells out the expected support from other NGAs (DENR, DOTC, and DTI) and will be operationalized through different convergence methods involving LGUs. National Economic Transformation Teams (NETT) for tourism as well as regional or provincial counterparts of these convergence mechanisms are necessary for the actual delivery of the program and services on the ground. The NETT for Tourism includes the Departments of Tourism, Trade and Industry, Science and Technology, Social Work and Development, Public Works and Highways, Agriculture, Environment and Natural Resources as well as the Climate Change Commission, Public-Private Partnership Center and the Tourism Infrastructure and Enterprise Zone Authority.  The League of Provinces and Philippine Chamber of Commerce are also active partners in the convergence efforts.   Through LGSP-LED the creation of Local Economic Transformations Teams (ETTs) has been an effective strategy to encourage various national government agencies, the private sector as well as other stakeholders such as the academe and civil society organizations to support LED initiatives on the ground both in terms of policy as well as through concrete programs and services. This is the reason why we have gathered the different agencies to gain your support in our Batch 3 projects – the critical next step at this juncture is to mobilize support around these tourism circuits to achieve envisioned results. The creation of economic transformation teams or ETTs at the national and local levels has been an effective strategy to encourage various national government agencies, the private sector as well as other stakeholders such as the academe and civil society organizations to support LED initiatives on the ground both in terms of policy as well as through concrete programs and services. MOA between DAP-DOT-DILG on the development of the Tourism Guidebook for LGUs and the draft Guidebook - This project is one of the key areas of cooperation of the DOT-DILG Joint Memorandum Circular No.2014-001, intended mainly for the use of the local tourism officers, who are responsible for preparing, implementing and updating local tourism development plans, and enforcing tourism laws, rules, and regulations, according to the National Tourism Act. Furthermore, the Guidebook would serve as the platform of the LED Program in developing the local initiatives particularly on tourism development planning, standards, statistical reports and coordination for tourism circuit development.

Moving Forward As you are well aware, the Department through its Regional Offices will be assuming the lead in the management of Batch 3 LED initiatives in the succeeding final years of the LGSP-LED Program. The planned role for the Regional Project Management Team, headed by their respective Regional Director, is the overall program supervision of the LED initiatives and LED enabling activities. The specific functions include (choose only relevant among all) Facilitate the mobilization of the concerned national government agencies, donor agencies and non-government organizations to support the alignment of efforts and leveraging of resources for the LED-enabling programs and LED Initiatives of the participating LGUs; Provide technical assistance and facilitate the implementation of the LED-enabling activities (i.e. computerization of BPLS of e-ready and BPLS compliant LGUs) of the participating LGUs, in line with DILG’s business-friendly and competitive LGUs program; Ensure that the cross-cutting themes of gender equality, poverty reduction and environmental sustainability are mainstreamed in the LED activities of the participating LGUs; Address policy issues and concerns related to the implementation of the LED Project; Monitor the results of the local project implementation using the localized Performance Measurement Framework; and, Submit quarterly progress reports to the National Project Management Team. I request that our hardworking DILG Regional Directors and LED Focal Persons stand up to show everyone the lead enablers of local economic development that will help the Batch 3 LGUs in creating business friendly and competitive environments to attract more investors and create jobs in their locality.

Thank you!