Loan%

Grant%

ne
20
10

ne
20
10
10

20
15
10

20
15
10

20
15
10

LOGOFIND provides long term financing and technical support to the local government units (LGUs) in implementing development projects. It is a World Bank funded project of the Department of Finance implemented through the Municipal Development Fund Office.

LOGOFIND aims to promote and enhance the government's strategic vision of local government autonomy and self-reliance by fulfilling these specific objectives: 

• To assist LGUs in expanding and upgrading basic infrastructure, services and facilities by providing financial assistance in the forms of loans and grants; and

• To strengthen the investment and development planning of LGUs, their revenue administration, and their capacity to prepare and implement projects by extending technical assistance and by providing a capacity building program responsive to their needs.

The main target beneficiaries of the LOGOFIND are the low-income LGUs, i.e., 3rd to 6th income class provinces, cities and municipalities. However 1st and 2nd income class LGUs may also access LOGOFIND assistance, on a case-to-case basis and specifically for social and environmental subprojects that would improve sanitation, environment and quality of life of the urban poor.

Loans and Grants for LGU subprojects aim to finance basic infrastructure, social and environmental services and facilities, procurement of equipment and consultancy services.  The list of eligible subprojects for financing provides the menu of available subprojects under the LOGOFIND Project.

(a)           Technical Assistance for LGU Training and Capacity Building 

Upgrades and enhances the technical and technological capacities of the LGUs. Among others, it improves their development planning abilities, municipal finance and project management skills and social and environmental assessment competencies. All LGUs whose subprojects have been approved for LOGOFIND financing will automatically qualify to receive this assistance. It comes in the following forms: technology transfer, and new or innovative capacity building methods and techniques, such as distance learning, LGU twinning, NGO/private sector-led upgrading method, etc. 

(b)           Technical Assistance for LGU Resource Mobilization 

• Improves and enhances revenue generation and administration, credit worthiness of LGUs by developing new initiatives and systems that increase local incom9e, and enhances monitoring of fiscal performance and financial reporting.   

• Enhances the LGUs capacity in business mapping, records conversion and data computerization, tax collection and real property tax assessment computerization.

The maximum amount of sub-loan to a single LGU will be up to 90% of the total cost of subprojects while the maximum possible sub-grant will be 70% of the total cost of subprojects, depending on the types of subprojects and LGU income class.  However, the combined amount of sub-loan and sub-grants that an LGU can avail of should be no more than 90% of the total cost of the subprojects proposed for financing.  The LGU will have to shoulder at least 10% of the total cost of the subprojects, as cash equity.

The loan portion of the subproject shall be charged an interest rate of 12%. The repayment period of principal and interest is for a maximum of fifteen years inclusive of a three-year grace period on the principal.

The interest rate may be adjusted depending on the market reference rate. However, the prevailing rate during the signing of the subproject loan agreement is fixed for the entire duration of the sub-loan amortization.

• INFRASTRUCTURE 

         Revenue Generating Subprojects

• Market

• Slaughterhouse

• Water supply system

• Pier and wharf

• Bus and jeepney

• transport terminal

• Post harvest facilities

• Cold storage and ice plant

         Non Revenue Subprojects

• Local roads, bridges, street furniture, and  lighting

• Flood control and drainage

• ENVIRONMENTAL

• Sanitation/public toilet and combined sewer

• River/seashore protection

• Solid waste management

• Traffic management and engineering

• Open space and parks

• SOCIAL

• Health center/Hospital

• School building

• CONSULTANCY SERVICES

• Project preparation and feasibility studies

• Detailed engineering and construction supervision

• Urban development planning

• EQUIPMENT

• Maintenance

• Operating equipment (related to above subprojects)