NEDA to LGUs: Avail of MDG Fund
The National Economic and Development Authority (NEDA) has called on the Local Government Units (LGUs) to avail of the Millennium Development Goal-Fund (MDG-Fund) financing window in the implementation of their MDGs.
NEDA social development specialist Cynthia Lumampao said the MDG-Fund is a Php500 million financing scheme implemented by the Municipal Development fund Office in partnership with the Department of the Interior and Local Government (DILG) and the NEDA.
Lumampao said during the Population, Health and Nutrition Meeting of the Social Development Council that the local officials are urged to avail of the financing in order to fast track implementation of their MDGs, in the following areas: eradication of extreme poverty and hunger, achievement of universal primary education, promotion of gender equality, reduction of child mortality, improvement in women's reproductive health, combating HIV/AIDs, malaria and other disease and ensuring environmental sustainability.
NEDA said proposals are not limited to traditional infrastructure projects; but also to immediate causal linkage between their proposed interventions and a particular MDG target.
Initial requirements for the availment of the financing include letter of intent from the local chief executive and a resolution by the Sanbgguniang Bayan/Panglungsod, expressing the following commitments: authorizing the LCE to enter into Project Loan Agreement/memorandum of Agreements; providing the required equity; providing for annual loan amortization until the loan is fully paid; authorizing the Department of finance to deduct from the LGU IRA the payments for amortization in case of LGU default or delinquency, and providing adequate funds annually for the maintenance of completed projects.
NEDA said it is ready, together with the DILG, to render technical assistance in the processing of requirements.
Eligible borrowers are 4th to 6th income class municipalities, while provinces may borrow provided that beneficiaries are municipalities in the said income brackets. (PIA 6)