USAID Report Template (A4) - Amazon AWS

DELIVERING EFFECTIVE GOVERNMENT FOR COMPETITIVENESS AND INCLUSIVE GROWTH (DELIVER) PROJECT QUARTERLY PERFORMANCE REPORT (APRIL 2020 – JUNE 2020)

July 30, 2020

This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.

DELIVERING EFFECTIVE GOVERNMENT FOR COMPETITIVENESS AND INCLUSIVE GROWTH (DELIVER) PROJECT

QUARTERLY PERFORMANCE REPORT (APRIL 2020 – JUNE 2020)

Contract No. 72049219C00001

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government.

QUARTERLY PERFORMANCE REPORT – FY 2020 Q3 | i

CONTENTS ACRONYMS .................................................................................................................... 2

EXECUTIVE SUMMARY ............................................................................................... 4

SUMMARY OF ACHIEVEMENTS FOR THIS QUARTER ......................................... 5

MONITORING, EVALUATION, AND LEARNING ................................................. 21

OUTREACH AND COMMUNICATIONS ................................................................. 26

GRANTS MANAGEMENT .......................................................................................... 27

MANAGEMENT AND OPERATIONS SUPPORT ................................................... 29

ANNEX – MILESTONE FEATURES OF DELIVER .................................................. 30

QUARTERLY PERFORMANCE REPORT – FY 2020 Q3 | ii

ACRONYMS

ADS Administrative Directive System

AER Action for Economic Reforms

ASPIRE Agribusiness support for Promotion and Investment in Regional Expositions

BCDA Bases Conversion Development Authority

BIR Bureau of Internal Revenue

BOT Build, Operate and Transfer

BTMS Budget Treasury Management System

CDCS Country Development Cooperation Strategy

CIAP Construction Industry Authority of the Philippines

CIC Credit Information Corporation

CITIRA Corporate Income Tax and Incentives Rationalization Act

CLA Collaborating, Learning and Adapting

CLiRS Contractors Licensing and Registration System

COP Chief of Party

COR Contracting Officer’s Representative

COVID-19 Corona Virus Disease 2019

CTRP Comprehensive Tax Reform Program

DA Department of Agriculture

DBM Department of Budget and Management

DELIVER Delivering Effective Government for Competitiveness and Inclusive Growth

DICT Department of Information and Communications Technology

DOF Department of Finance

DOST Department of Science and Technology

DPWH Department of Public Works and Highways

DTI Department of Trade and Industry

DO Development Objective

E-TRACS Enhanced Tax Revenue Assessment and Collection System

GESI Gender Equality and Social Inclusion

GOP/GPH Government of the Philippines

IATF Inter-Agency Task Force

QUARTERLY PERFORMANCE REPORT – FY 2020 Q3 | iii

IEC Information, education, and communication

IPS Indo-Pacific Strategy

IR Intermediate Result

IRA Internal Revenue Allotment

IRR Implementing Rules and Regulations

LGU Local Government Unit

LTTA Long-Term Technical Assistance

MEL Monitoring, Evaluation and Learning

MinDA Mindanao Development Authority

MOA Memorandum of Agreement

MTEF Medium-Term Expenditure Framework

MTWG Multi-stakeholders Technical Working Group

NEDA National Economic Development Authority

PADCDI Philippine Association for Digital Commerce and Decentralized Industries

PCAB Philippine Constructors Accreditation Board

PCCI Philippine Chamber of Commerce and Industry

PEA Political Economy Analysis

PMP Performance Management Plan

PPP Public-Private Partnerships

PMU Project Management Unit

PR Press Release/Public Relations

RF Results Framework

ROWA Rights of Way Acquisition

QPR Quarterly Performance Report

STTA Short-term Technical Assistance

SURGE Strengthening Urban Resilience for Growth with Equity

TOR Terms of Reference

USAID United States Agency for International Development

W-GDP Women’s Global Development and Prosperity

QUARTERLY PERFORMANCE REPORT – FY 2020 Q3 | 4

EXECUTIVE SUMMARY During this quarter, DELIVER continued to make significant progress in providing timely and strategic technical assistance to key GPH counterparts and private sector partners, despite highly challenging conditions spawned by the COVID 19 pandemic. With the shock and disruptions sweeping the country, DELIVER is still able to operate and work on its 3 major components: promote public financial management, infrastructure and MSME development – providing key and strategic interventions responsive to the pandemic, including support for policy and business process reforms related to immediate and post-pandemic recovery plans.

These notable achievements include:

• Pasig City Government adopts DELIVER’s proposal for the establishment of the Multi-stakeholders Technical Working Group (MTWG) for the Pasig City LGU Revenue Code Rationalization Initiative

• DELIVER mobilizes international expert on public procurement to identify opportunities to strengthen collaboration between GPPB and the Commission on Audit (COA)

• Development and launch of the Emergency Procurement Portal for the Government Policy Procurement Board (GPPB) that has yielded $30 million worth of savings for the Government for the purchase of COVID-related goods while ensuring transparent mechanisms

• DELIVER provides support to GPPB communications, particularly the production of their infographics for information dissemination on procurements done under the Bayanihan Act;

• DELIVER mobilizes local and international experts to update and provide recommendations to DBM’s Medium-Term Expenditure Framework (MTEF) and program budgeting

• DBM adopts DELIVER’s recommendation on budget realignment strategies for COVID response

• Sponsorship of the PCAB Online Renewal Portal, which has already facilitated the early release of about 2,000 licenses to construction firms

• DELIVER facilitates the onboarding of PayMaya on PCAB’s Online Renewal Portal to ease payment transactions increasing the number of payments from 104 during its first week to about 4,000 payments

• DELIVER-e continues to create greater impact to poor farmers, doubling their income while providing faster service and fresher vegetables to over 32,000 customers over the past 2.5 months of operation

• Congressional House Ways and Means Committee Chairman adopts DELIVER’s inputs on private sector engagement, tax administration simplification, better procurement practices, and liquidation of government debts to contractors in his filed Philippine Economic Stimulus Act (PESA) now known as the ARISE or the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill, which has passed the Lower House on third and final reading

• Congressional Committee on Trade moves to update the century-old Warehouse Receipts Law; DELIVER provides a business case and technical inputs on its updating that is crucial for increased access to finance of farmers and MSMEs

• Developed and submitted to USAID a project mitigation plan to address the possible impacts of COVID-19 on planned project activities, including mitigation strategy to address risks to activity deliverables and indicators

• In coordination with USAID, DELIVER quickly operationalized its grants facility as a response mechanism to support MSME businesses affected by the COVID 19 pandemic


SECTION 1

SUMMARY OF ACHIEVEMENTS FOR THIS QUARTER

RESULTS FOR DELIVER OUTCOMES

COMPONENT 1. FISCAL REFORM AND PUBLIC FINANCIAL MANAGEMENT

I. DOMESTIC RESOURCE MOBILIZATION Pasig City Government adopts DELIVER’s proposal for the establishment of the Multi-stakeholders Technical Working Group (MTWG) for the Pasig City LGU Revenue Code Rationalization Initiative The Pasig City LGU was identified as one of the pilot cities to undertake a regulatory guillotine process and optimize revenue generation. However, due to the restraints caused by COVID 19, the work in Pasig City as a pilot for the local revenue code rationalization has slowed down as they prioritized the emergency in the City. However, this activity has once again gained momentum. The office of Pasig City Mayor has appointed Atty. Diego Santiago as the interim chairperson for the initiative, with the assistance of Atty. Tomic Apacible from the office of the City Administrator. A virtual meeting was held with the department heads of the offices in charge of collecting taxes and fees to readdress the queries on the data gathering tool DELIVER has provided them. The data gathering tool is a matrix that aims to understand the rationale of the taxes and fees currently being levied. These matrices will be used as one of the bases for identifying nuisance taxes, as well as taxes that may remain but will be improved on as DELIVER supports the LGU to optimize its policy and processes. To further operationalize this initiative, DELIVER proposed a draft Terms of Reference (TOR) for the establishment of a Multi-stakeholder Technical Working Group (MTWG) to administer the regulatory guillotine process. Through the draft TOR, DELIVER proposed the inclusion of local private sector representatives as voting members of the MTWG. This is to strengthen the active participation of the local business sector in the policy dialogue, formulation, and implementation of the city revenue rationalization process. The submitted TOR also proposed to include DELIVER and RESPOND Projects in the MTWG to provide technical support and resources. The MTWG will be chaired by the City Administrator Atty. Jeron Manzanero with four other offices will be represented in the MTWG, a representative from the Anti-Red Tape Authority (ARTA) Better Regulations Office, and two representatives from the private sector that could come from their local chamber of commerce.


II. PUBLIC FINANCIAL MANAGEMENT

DBM adopts DELIVER’s recommendation on budget realignment strategies for COVID response

Following the government’s large budget requirements to address the COVID situation (initially estimated at around $10 million), DELIVER submitted to the Department of Budget and Management (DBM) policy recommendations for sourcing funds for the response strategy. Salient proposals include: a) a review of the “for later release (FLR)” budgets of the Agencies; and b) adoption of fiscal discipline to generate savings.

In the National Budget Circular No. 580 dated April 22, 2020, the DBM issued an adoption of economic measures in the government to partially generate the required amounts for the emergency health situation. As set out in NBC 580, the DBM will no longer release the 35% of the programmed appropriations and 10% of the total released allotments shall no longer be available for obligation. The implementing agencies were asked to review and evaluate the FY 2019 unreleased appropriations and unobligated allotments and those identified “for later release” in the FY 2020 GAA as well as unobligated allotment. The NBC 580 also prohibits the release of allotments for new programs, projects, activities, including Congress-Introduced Increases, which are not likely to be implemented within the current calendar year. These measures will limit the government’s budget for FY 2020 to the P4.1 trillion approved by Congress.

DELIVER mobilizes international expert on public procurement to identify opportunities to strengthen collaboration between GPPB and the Commission on Audit (COA)

Inefficiencies in public procurement is often considered as one of the key factors that slow down the roll out of government programs, especially for infrastructure projects. Practitioners often cite the lack of coherence between procurement standards and audit findings, as root causes for undermining the efficiency, and ultimately the responsiveness, of procurements. Making public procurement more responsive to the needs of Philippine development, thus requires a harmonization of audit policies (e.g. “red flags”) with procurement practice and procedures. Strengthening the coordination between the country’s main regulatory and policymaking bodies on public procurement and the audit of public procurement, will ultimately aid in minimizing procurement and financial management risks in the government.

In line with this objective, DELIVER is supporting GPPB and COA in refining procurement procedures, processes, and documentation requirements. To this end, DELIVER mobilized Mr. Thomas Burola, an international expert on public procurement from Planet Partnership, to conduct a professional development diagnostic that will analyze the respective mandates and execution of GPPB and COA. The analysis will also examine and the operational interface between the two agencies to identify key

Figure 1: Next steps in Pasig Revenue Code Rationalization Initiative


challenges to their cooperation regarding procurement and procurement audits. This aims to lay down the foundation to identify opportunities for strategic technical assistance to the GPPB, at the least, focused on developing the capacity of concerned officers in executing their mandate more efficiently and effectively. It will also provide key insights in formulating policy proposals to refine procurement policies and procedures to address existing inefficiencies, gaps, and weaknesses.

Development and launch of the Emergency Procurement Portal for the Government Policy Procurement Board (GPPB) that has yielded $30 million worth of savings for the Government for the purchase of COVID-related goods while ensuring transparent mechanisms

As an urgent response to the emergency procurement needs of the government amidst the COVID-19 pandemic, the United States Agency for International Development, through its DELIVER Project, collaborated with the Government Procurement Policy Board (GPPB) to develop the GPPB Online Portal, an online system that enables the Philippine government to procure COVID-19 essentials in a timely and transparent manner.

Since the portal’s launch on April 13, 2020, the Philippine government was able to purchase $127 million worth of COVID-19 essentials and report savings amounting to at least $30.5

million from its total approved budget for contract (ABC) worth $158 million (as of June 26 data). The total ABC refers to the total estimated cost of procurement based on latest market surveys on COVID-related items to be purchased. This will enable the government to optimally use their savings in other crucial expenditures to address the pandemic situation.

“We need to make sure that agencies are able to procure what they need and when they need them. Our rules should be simple, and procedures efficient. Lives are at stake, and agencies need to act fast,” Budget Secretary Wendel Avisado emphasized as he urged government agencies to remain accountable and transparent in the use of people’s money, whether in a state of calamity, or otherwise.

“Procurement during this pandemic posed a huge challenge for us in the GPPB-Technical Support Office. But this pandemic situation allowed us to demonstrate our ability to act fast, and that is reflected in our numerous emergency procurement guidelines which were made available at the onset of the crisis. We also thank USAID for helping us develop the GPPB Online Portal, which now allows all

Figure 2: Health Secretary Francisco Duque inspecting quarantine facilities for COVID-19 preparations (Source: Department of Health)

Figure 3: GPPB Online portal data as of June 26, 2020

Heatmap of GPPB Online Portal


procuring entities from the national down to the local levels, to purchase emergency essentials in an efficient and transparent manner. This collaboration came at the right time when the government needed the support to help alleviate the crisis," Executive Director Rowena Ruiz explained.

The Department of Health (DOH), which is at the forefront of the battle against the COVID-19 crisis, has awarded close to $20 million worth of contracts for various medical supplies including personal protective equipment, gloves, masks, alcohol and sanitation products. “The website is easy to use, can be easily accessed using our laptop or computers, and user instructions are clear,” said Katrina C. Ortiz of the DOH Procurement Management Division.

Meanwhile, Rizal Provincial Government, another heavy user of the GPPB Online Portal, has awarded close to $3 million worth of contracts for the purchase of relief goods, various medical supplies and equipment, hospital beds, wheelchairs, swab booths, and SARS-Cov-2 antibody test kits.

Ms. Connie De Leon, procurement Officer-in-charge of the Rizal Province, said that the portal is “easy to navigate, accessible, and stable despite the fact that there are many simultaneous users.” Ms. De Leon also added that apart from efficiency, the portal promotes procurement transparency, allowing the public and taxpayers to monitor use of public resources.

GPPB-TSO Executive Director Ruiz clarified that the new government procurement issuances and the development of the portal are an integral part of the Board’s key strategies to improve public procurement. “The most crucial among these are proactiveness, transparency and openness – all of which are crucial measures of public accountability. I also want to reiterate that we can’t sacrifice transparency and public accountability over expediency”, she added.

The portal will remain functional even after the Bayanihan Law expires to allow agencies to easily comply with the requirement to post awarded contracts and to upload their approved annual procurement plan due on September 30, 2020. DELIVER will continue to work with GPPB to improve the functionality of the portal by enabling the online submission of bids, which will remain useful during and even after the health crisis.

DELIVER provides support to GPPB communications, particularly the production of their infographics for information dissemination on procurement under Bayanihan Act

Timely and relevant information are crucial especially during emergencies to ensure public spending is transparent and responsive to the most immediate needs of the public. DELIVER provided communications support by producing information, education and communication materials for their Bayanihan Act Emergency Procurement Process flow as well as the series of Frequently Asked Questions electronic magazine for a quick guidance to procuring entities. DELIVER also designed “Billie Bayong” as GPPB’s new mascot for a more humanized touch of GPPB’s grand agenda of instilling transparency, proactiveness, responsiveness, and efficiency. Following this will be the development of GPPB public service announcement (PSA) advocacy and e-learning audio-visual materials for the next quarter.

Figure 4: Personal Protective Equipment at the Rizal Provincial Government Warehouse


DELIVER mobilizes local and international experts to update DBM’s Medium-Term Expenditure Framework (MTEF) Manual and program Budgeting

The Philippines has persistent unutilized budgets/appropriations during the fiscal year, that translate to non-implementation of some important programs or projects and large opportunity costs for both the government and economy. In recent years, Government of the Philippines has rolled out an impressive suite of public financial management (PFM) reforms including Cash-Based Budgeting System (CBS), Two-Tiered Budgeting Approach (2TBA), and Program Expenditure Classification (PREXC) and Mid-Term Budgeting amongst other critical reforms to improve the budgeting process. These reforms are partly responsible for an impressive economic performance of the Philippines. However, despite the recent efforts, several serious challenges remain. Addressing these challenges could be a key to faster recovery from economic impact of COVID-19 pandemic.

Budget utilization and cash disbursements, while improved, remain one of the biggest challenges. Measured as a ratio of disbursements to appropriations and continuing obligations, the ratio was less than 75 percent in 2019. This translates into foregone economic activity equivalent to about 7 percent of GDP in the same year. There are several factors that explain the situation, including:

• Suboptimal budget estimates (often multi-year requirements) lumped into one annual appropriation. Improvements in Medium Term Expenditure Framework (MTEF) and Cash Budgeting System (CBS) should help address the situation.

• Lack of timely payments to contractors. At least part of P300 billion from DPWH 2019 disbursements from prior year obligations should be attributable to the factor. Anecdotal evidence suggests that government entities may not be paying contractors on time, often delaying or skipping payment of the last instalment even if the majority of contractor’s deliverables have been met.

• Budget rigidities stemming from 19,000 budget line items (remnants of the input-based budgeting) compared 70-250 line budgets in countries that adopted program budgeting. Lack of flexible virement rules further adds sand into the wheels of the government apparatus.

DBM sought the assistance of DELIVER to help pilot agencies (e.g. DepEd, DPWH, DOH) in adopting the MTEF approach. To respond to this need, DELIVER mobilized local and international PFM experts. Together with the DELIVER team, the two experts are working with DBM in reviewing the draft MTEF and program budgeting documents to adopt good international practices and provide inputs on its improvements to hasten budget utilization and proper program evaluation/monitoring. DELIVER is also conducting a series of interviews with pilot agencies (i.e. DPWH, DSWD, DepEd and DOH) and other key informants (including former government officials) to gathers insights on ways to improve the MTEF given the respective technical and sectoral concerns and considerations of the agencies.

After consultations with counterparts and following a thorough review and in-depth analysis, DELIVER has identified and drawn preliminary recommendations on program budgeting and MTEF:

I. Improve mid-term budgeting

a. Use the MTEF as the single main document for budgeting.

b. Streamline the different budgeting processes and reduce the number of budget forms (currently at 24 forms) to ensure that there is no duplication of information.

c. Revise the draft MTEF Manual to be simple and “instructional”, to include clarifications on the mechanics on the preparation with costing, examples of proper mid-term program budgets, etc.


d. Strengthen monitoring and evaluation of design and performance (performance evaluation and review) of top priority initiatives/programs/projects of current administration (such as Build, Build, Build, etc.).

II. Firmly implement the cash-based budgeting system (CBS)

a. Discontinue the practice of continuing obligations by affirming that obligations issued should be spent during the same year. Unpaid obligations would have to be re-appropriated as a part of the budgeting process for the succeeding year/s.

b. Implement prompt payment of obligations incurred (goods delivered/services rendered) using the current year appropriations strictly within the fiscal year. This will improve settlement of payables especially to contractors and reduce number of unsettled last installment payments.

c. Continue capacity building for the oversight and implementing agencies on the CBS and emphasize its importance to improve the budget utilization of the government.

d. Other measures to ensure discontinuation of late or non-payments to contractors:

PRIME unit (to be established in DBM) to review most problematic contractual requirements that result in less than timely payments to contractors;

GPPB to explore a possibility of allowing for more flexibility in contract amendments between contractors and procuring entities; and

Establish an independent dispute resolution mechanism to address disagreements/issues between contractors and procuring agencies.

III. Enhance Program Budgeting

a. Prepare a plan to shift from line item budgeting (estimated with 19,000 line items) to program budgeting, in coordination with Congress and agencies concerned. As an initial step, the agencies can start revising and streamlining their Program/Activities/Project’s (P/A/Ps) to be included in the National Expenditure Program (NEP). This will be done by phase, slowly reducing the line items (example, removing line items for activities) until such time that Congress accepts program budgeting as one of the tools to expedite program/project implementation.

b. Introduce virement rules to improve budget flexibility within program. Retain firmer restrictions on moving funds out of capital outlays and towards wages and salaries. Proposal on the virement rules will consider best practices in other countries and the GoPs experience on the disbursement acceleration program (DAP).

c. Ensure that authorized program budgets have mid-term horizon.

d. Make sure that at least one properly structured program is introduced by each agency through the Tier 2 budget proposals. The program should be based on a strategy paper, logical framework, well-defined outcomes, have mid-term horizon and follow the CBS approach.

IV. Establish PFM Reform, Implementation, Monitoring and Evaluation (PRIME) Unit. The unit will report directly to the Office of the Secretary of DBM with an Undersecretary position as Head and co terminus with the Secretary. The staffing of this Unit may notably be manned by seconded internal experts who will complement the BMBs and FPRB of DBM with the following suggested functions:

a. Coordinate with the BMBs, FPRB and other Units in DBM to develop policy reform recommendations and spearhead their implementation, including improvements to program budgeting, identify problematic contractual arrangements and payment procedures, support to the filing/approval process of the Budget Modernization Bill, simplification of the budget


classification, spearhead IT modernization projects, etc. The pilot reforms / good practices can later be extrapolated to the rest of the agency.

b. Ensure smooth implementation of priority programs/projects of the administration. It will help and oversee the design of select programs/projects to ensure they are done on mid-term basis and meet program budgeting requirements.

c. Conduct monitoring and evaluation of the program implementation and performance review and evaluation of the narrowly selected set of programs/projects.

V. Simplify budget classifications (existing UACS)

a. Reduce the number of existing Unified Accounts Code Structure, or UACS digits, for expenditures, currently at 54 digits, for easy implementation and to consider the existing IT infrastructure support. This may include review of the current system on the use of centrally managed items (CMIs) transferred to regions/districts for project implementation.

b. Adopt the codes in the IMF 2014 Government Finance Statistics (GFS) Manual for revenues. The classification scheme is determined mainly by the base on which the tax is levied. UACS of the revenues will also require close coordination with the DOF and the Banks as collecting agents of the government.

VI. Review and re-file the Budget Modernization Bill (BMB).

a. The review and re-filing will ensure the implementation of the CBS, avoid changes on this approach, and to institutionalize other reforms listed above, that may be accepted. Conduct policy dialogues/outreach activities with legislators and other concerned agencies to help in the passage of the BMB.

DELIVER will then endorse these recommendations will continue its engagement with DBM to facilitate enhancements in the MTEF as a next step.


COMPONENT 2. INFRASTRUCTURE DEVELOPMENT

Sponsorship of the PCAB Online Renewal Platform, resulting in the release of about 2,000 licenses to construction firms. Within four weeks, The Philippine Constructors’ Accreditation Board (PCAB), industry associations, and DELIVER were able to benchmark requirements against international good practices, dramatically reducing the number of requirements from 24 to just nine (9) digital submissions. During this period, DELIVER developed an online platform for PCAB which eliminated face-to-face interaction thereby reducing the scope for potential corruption through improved transparency. To date, 1,938 licenses have been validated and issued for completing their payment transactions. The processing time is four (4) working days on average, after the submission of all the requirements for license renewal. This demonstrates increased efficiency in doing business compared to the previous month-long processing in the past. The construction industry contributes as much as 17% of the country’s GDP, and creates a multiplier effect in the economy particularly in job creation, contributing to one of the most crucial components of the Administration’s economic recovery plan. “I would like to express our sincerest gratitude to the team of USAID-DELIVER Project […] PCAB team, together with the experts of USAID-DELIVER Project, rushed the development of the Contractor’s License Online Renewal Platform that usually takes around five to six months of development,” PCAB Chairman Pericles Dakay exclaimed This portal is initially a response to health protocols avoiding person-to-person contact for COVID-19 prevention. But more importantly, Dr. Dakay explained that “it is a big step towards improving our PCAB’s compliance with the Ease-of-Doing-Business Law, modernizing the whole licensing processes even beyond the pandemic situation.” This new system makes construction license renewal more accessible 24/7 through the internet, without the need for firms to visit the PCAB office and or any regional window. PCAB Chairman Dr. Pericles Dakay said, “this will be a great relief for around 15,000 contractors of our country, 90% of which are small and medium enterprises, who can immediately renew their licenses before June 30, the expiration date of all licenses according to the law.” The Department of Trade and Industry (DTI) Secretary Ramon Lopez noted that “the construction industry has always generated the greatest number of additional jobs in the last decade. In 2016 to 2019 alone, through the flagship Build, Build, Build Program of the Duterte Administration, the industry added around 800 thousand jobs bringing the current level to 4.2 million, which accounted for 10% of the workforce in 2019.” The construction industry is one of most important sectors of the economy. Secretary Lopez further expounds that “This is why government services, such as licensing, should work for businesses, most especially with the construction industry that can create a large impact and (has a) huge multiplier effect for all of us. Making the renewal system online is always the ultimate form of ease-of-doing-business (EODB)” Construction spending accounts for about 17% of the gross domestic product (GDP) and grew the fastest among all business sectors at more than 10% average annual growth rate in recent years. However, the COVID-19 pandemic’s economic disruption has caused the construction industry to significantly slowdown, and with it, the Philippines’ GDP dived to its decade’s low of -0.2%. Dr. Dakay underscored that “given the importance of the construction industry should be at the forefront in the post-COVID economic recovery” of the Philippines. A crucial part of the country’s economic recovery initiative is galvanizing its public infrastructure spending through its Build, Build, Build and


stimulating its construction industry starting with the crucial first step of an improved, simpler, and faster licensing system. In any given year, there are about 58,000 government infrastructure contracts and about 75,000 private construction contracts offered in the market. The PCA noted that the country needs at minimum 20,000 licensed contractors to address the demand efficiently. PCAB’s effort to simplify the licensing system and making processes seamless provides greater opportunity for more quality constructing firms to participate as these are licensed in a more timely manner, enabling the fulfillment of more construction contracts, thereby leading to increased economic activity for both economic recovery and growth. PCAB’s online portal also features a feedback form for users to quickly provide their comments and suggestions. Additionally, PCAB is continuously working to automate the rest of its other transactions such as new applications for license, upgrading of license category, along with consortium and JV applications. More e-payment facilities are expected to be connected in the coming weeks for faster and more convenient transactions. DELIVER facilitates onboarding of PayMaya on PCAB’s Online Renewal Portal to ease payment transactions increasing the number of payments from 104 during its first week to about 4,000 payments PayMaya Philippines, Inc. is now an official partner in automating the transactions of the Philippine Constructors’ Accreditation Board (PCAB), particularly its pilot on online constructor’s license renewal that serves around 15,000 constructors all over the country. PayMaya, alongside LandBank LinkBiz Portal and 7/11 payment center, will be made available to clients 24/7 for more convenient transactions. “We are very happy that we are able to build this partnership with PayMaya to enable easier transactions for our contractors to comply in renewing their licenses. However, we recognize that there may have been some shortcomings or glitches along the way, which we have and is still carefully addressing. The PCAB Online Renewal is undergoing a continuous process of improvement, that is why feedbacks from all our stakeholders are very much important in reviewing and developing better systems that will soon cater to all our other transactions for Filipino contractors,” PCAB Director General Herbert Matienzo said. “I would like to express our sincerest gratitude to the team of USAID-DELIVER Project […] PCAB team, together with the experts of USAID-DELIVER Project, rushed the development of the Contractor’s License Online Renewal Platform that usually takes around five to six months of development,” PCAB Chairman Pericles Dakay exclaimed. Currently PCAB has 7,218 registered contractors in the system, or about 52% of the estimated 15,000 PCAB-licensed contractors that are up for renewal by the end of June each year. The number of payments also ballooned to 3,898 by the end of June, from a mere 104 renewal application payments during the first week in June when payment channels were limited.


There are 4,048 complete digital submissions at present but is expected to increase in the coming days CIAP-PCAB and the DTI itself increases its advertisement and visibility to the target firms. PCAB has informed DELIVER that it has already released 2,000 digitally validated and produced construction licenses. The initial slowdown in its first week was due to a number of reasons: (1) a skeletal workforce in offices issuing necessary documents; (2) some firms prioritized their income tax return (ITR)

processing in time for the deadline on the 15th of June; (3) the learning curve of the constructors using the portal took some time as well; and (4) constructors encountered issues in completing their payment through the LinkBiz Portal because majority of them did not have a LandBank account, with only a few small banks being catered by the BancNet system linked to LinkBiz. “This is the first time that PCAB is embarking onto automating its decades old processes, and this is a learning experience for the rest of us here. We immediately convened to plan and mitigate further glitches that is why we have engaged more partners in the process such as the Bureau of Treasury (BTr) and the PayMaya,” PCAB Chairman Preicles Dakay said. To immediately address the issues in payment, PCAB has allowed the processing of the completed digital submissions even without the payment yet. The contractors should then provide their proof of payment within the renewal period, which is June 30, 2020 in accordance to the law, after which, firms will receive an email feedback on the status of their renewal application. All licenses will be sent digitally through email so firms will no longer have to visit PCAB Offices and expose themselves to imminent health risks. “This effort is pursuant to the vision of the Roadmap to have a construction industry equipped with efficient, modern, and digital technologies, founded on a culture of integrity, professionalism, and innovation. The action items identified in Roadmap for the Construction Industry of the Philippines (CIAP-PCAB to modernize its services in compliance with Ease of Doing Business Law, also reinforces this initiative. At this time, PCAB extended the deadline for renewal of license using the PCAB Online Renewal Portal to the end of September 2020 without any penalty. However, it should be noted that those who fail to accomplish their renewal will not be given a license to continue operating until they complete the renewal process. More e-payment options will be made available soon for faster and more convenient transactions as PCAB and USAID DELIVER Project continue working to improve the system and collaborate for the future automations of other transactions such as new applications for license, upgrading of license category, and consortium and joint venture applications.

Figure 5: Infographics of June 2020 data


DELIVER continues to develop Tagbilaran Bypass Infrastructure Project Due to threats of COVID-19, efforts on this initiative was initially postponed since the provincial government of Bohol directed its activities in responding to the needs of the province and its constituents. Since then, however, the DELIVER Project team has been working with the Provincial Government of Bohol, to craft the details of the Tagbilaran Bypass Infrastructure Project, which intends to improve the productivity and market access of the farmers and communities to and from the North and Northeast of Bohol through more efficient transport connectivity. This project is also expected to provide better accessibility and mobility for Bohol residents and tourists. Moreover, together with Planet Partnerships, DELIVER project team is finalizing its strategic approach in forming the Business Case. The Business Case will propose two options, covering the following areas: • Investment Opportunity and Potential Impact, • Economic Evaluation • Financial Evaluation • Legal and Regulatory Analysis • Public-Private Partnership Option Models • Implementation Action Plan To provide complementary support to this effort, the DELIVER team is also working with a Right-of-Way Acquisitions Expert. it is therefore expected that the business case will also reflect two alignment options with estimated ROWA costs. A presentation of the assessment to the Provincial Government of Bohol is expected to happen in the next quarter. DELIVER continues its work on the Infrastructure Procurement Gap Analysis Report Historically, the Philippines has prioritized economic development through sustainable and inclusive infrastructure partnerships with private investment across priority sectors in target geographies. Policy changes deprioritized private sector engagement in favor of public sector led and donor assisted infrastructure development. However, macroeconomic changes, diminished ODA / Chinese funding, and the COVID-19 pandemic have contributed to renewed policy focus on engaging the private sector in infrastructure investment and economic stimulus. Modernizing, streamlining, and consolidating the framework for Public-Private Partnerships (PPPs) and public procurement is essential to mobilizing private investment, without which it will be difficult to overcome a projected US$69 billion infrastructure investment gap between 2016-2040 (Global Infrastructure Hub). Delivering strategic capacity building and analytical tools to improve implementing agencies’ ability to apply modernized techniques and digital systems is imperative. The DELIVER Project team, together with Planet Partnerships, has commenced a rapid assessment to examine the effectiveness of public infrastructure procurement and the existing PPP regime, and to formulate a specialized advisory support on the course of action going forward. The report had identified primary recommendations for reform in two areas: public procurement and public-private partnerships.


Public Procurement

1. Implement a Bidder Pre-Qualification System for Framework Contracts 2. Design a Procurement Action Plan to address limited competition in infrastructure bidding

with indications of collusion and inefficiencies 3. Streamline rules and procedures for land acquisition 4. Increase licensed and qualified contractors that are eligible to bid on procurement contracts 5. Institutionalize the complaint and protest mechanisms through an Independent Review

Body Public-Private Partnerships

1. Modernize and Harmonize Republic Act 6957 as Amended by Republic Act No. 7718 to

strengthen the regime for PPP design, procurement, and implementation 2. Build capacity in implementing in agencies to conduct value-for-money analysis

3. Establish a clear policy on quantifying and accepting risk associated with contingent liabilities 4. Strengthen processes for project identification, appraisal, and selection, 5. Develop and strengthen viability gap funding oversight and coordination mechanisms.

Currently the group is finalizing the set of recommendations. This report will be shared to relevant implementing agencies for further comments and will be used as basis for crafting possible areas of collaboration and further strategic technical assistance.


COMPONENT 3. MSME COMPETITIVENESS

DELIVER-e continues to create greater impact to poor farmers, doubling their income while providing faster service and fresher vegetables to over 32,000 customers over the past 2.5 months of operation According to to a study conducted by the Philippines Department of Agriculture, farmers receive about 20 percent of the value of vegetables sold in Metro Manila markets. Within a span of 2.5 months, DELIVER-e platform was able to record 71,000 USD in total sales. About forty percent (40%) of the total sales, or approximately 28,400 USD, was estimated to have been received as income by about 2,500 farmers. This effectively doubled the value that they normally receive through similar transactions in the

past. Since March 2020, over 260 tons of fresh fruits and vegetables have been transacted through the platform, while the produce has reached over 32,000 consumers in Metro Manila through its two e-market places Gulay ng Bayan and Curative City Farms. The platform operator, InsightSCS, is currently in the process of on-boarding two more e-marketplaces. DELIVER-e has also partnered with four farm organizations/suppliers AGREA, Agrabah, Seeds and Fruits Cooperative, and San Roque. These suppliers source their fresh produce from northern and southern Luzon, and notably from Mindanao. Once these enhancements are completed, transactions through the system is expected to increase two-fold. During this pandemic, DELIVER-e has also been a means by which individuals and organizations have been able to send food relief to those in need. Last June 25, about 1.25 tons of vegetables were sourced from struggling farmers in Quirino Province which was then donated to families in Mandaluyong. Congressional Ways and Means Committee adopts DELIVER’s inputs on private sector engagement, tax administration simplification, better procurement practices, and liquidation of government debts to contractors in his filed Philippine Economic Stimulus Act (PESA) now known as the ARISE or the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill, which has passed the Lower House on third and final reading The COVID-19 Pandemic has had a significant impact on the Philippine economy. In the first quarter of 2020, GDP contracted by -0.2% year-on-year, as compared to the positive 6% y-o-y growth in the previous quarter. This is the first time in a decade when the Philippine economy recorded negative y-o-y growth. In anticipation of negative impacts in domestic economies, different countries are designing their

Figure 6: Benguet farmers and their produce

Figure 7: First-miler staff loading fresh produce for delivery to Metro Manila


economic stimulus packages while enacting these as law. At this time, economic stimulus strategies mostly consist of a set of interventions intended to provide immediate relief to firms and individuals, in order to reduce lasting damage to the economy, and sustain critical components for growth. The Office of Representative Joey Salceda reached out to the DELIVER Team to solicit inputs for the proposed Philippine Economic Stimulus Strategy. The team welcomed the opportunity to influence the development of this bill. This enabled the team to consolidate the lessons from the simultaneous efforts in the past two months – such as the engagement with the DOF on its comprehensive tax reform program, building the emergency procurement system in coordination with GPPB, the development and deployment of the DELIVER-e platform, the ongoing dialogues with PhilGuarantee Corporation, and the coordination with DTI on the implementation of the Innovative Startups Law – and integrate them into the proposed economic stimulus bill. DELIVER’s main contributions revolve around the following: Reducing Burden of Compliance for Micro and Small Enterprises Simplification of rules and regulations for the whole lifecycle of the business, beginning with registration. While the earlier version of the bill only allowed relief for renewal of permits, DELIVER recommended that this should cover the entire range of interactions with the government beginning with registration (to encourage registration of informal enterprises), licensing and eventual closure (to ease burden of closure from losing businesses). The team also specified that BIR should simplify requirements including the removal of the Php500 Annual Registration Fee and allow electronic receipts as proof of payments. Building on the traction gained with ARTA, DELIVER also proposed the creation of ARTA Taxpayer’s Advocate Offices within the premises of BIR and BOC to have a representative to safeguard taxpayer rights. Lastly, the team built on the engagement with Pasig City LGU to review and rationalize their fees for business permit renewal by suggesting that LGUs should be encouraged to reduce the number of fees and taxes charged where the actual revenues generated are greater than the cost of compliance, and administration of fees and taxes. Expansion of Private Sector Participation in Economic Recovery Efforts Private sector as another player in the disbursement of stimulus loans. A 2015 PIDS paper studied MSME coping strategies post-Yolanda. In that paper, the authors found that MSMEs relied on a mix of loans from family/ friends and informal money lenders to fund post-disaster recovery. The team worked to include a provision that states that “implementing agencies may enter into partnerships or agreements with public and private entities to ensure the timely and efficient delivery of services and fulfillment of duties under this act.” This provision specifies that private lending institutions can participate as conduits along with financial technology firms to improve access for MSMEs and the informal sector. Enhancements to the mandate of the PhilGuarantee Corporation. Another way to expand access to “cheaper” loans is to widen the coverage of guarantees to loans provided by non-bank financial institutions. DELIVER also suggested that PhilGuarantee implement a loan portfolio guarantee scheme instead of on a per loan basis. This draws from the lessons from previous USAID project with the DCA, thereby assuring greater reach. Lastly, as private banks experienced delays in receiving guarantees from PGC to cover losses, it was recommended to establish a sinking fund that would allocate a proportion of the guarantee in order to


ensure the availability of the fund for immediate disbursement to the banks. Push for Digitalization Digitalization of government processes. SB Corp, ACPC, PGC, LBP, and DBP will play a critical role in ensuring MSME survival in the coming months. DELIVER recommends that these institutions adopt measures aimed at digitalization of loan application, approval, and disbursement process to expand reach and increase access. Build, Build, Build An important consideration is the streamlining of the overall process from procurement until the disbursement of payables. Hence, the recommendations for this section included: • Allowing partial release of payments to contractors • COA and DBM to streamline documentary requirements for processing payments across

government • DOF to establish a project finance relief facility for the government financial institutions to monetize

future receivables of the contractors. Congressional Committee on Trade moves to update the century-old Warehouse Receipts Law; DELIVER provides a business case and technical inputs on its updating that is crucial for increased access to finance of farmers and MSMEs The Warehouse Receipts undertaking is a critical intervention to increase access to finance to MSMEs and farmers. It addresses farm to market logistical challenges, MSME/agricultural access to finance, and food security. Philippines warehousing ecosystem needs to be strengthened in terms of its enabling environment, physical infrastructure and governance as well as transparency. Working on these areas can bring integrity and confidence in the ecosystem to convince banks to lend based on warehouse receipts. As a first step, there is a need to strengthen and revisit the governing law, the Warehouse Receipts Act which dates back to 1912. It was intended to mobilize financing for all goods and crops, however, it has only been successful for sugar. At the prompting of the lower house, the Warehouse Receipts bill was taken up in the House of Representatives Trade Committee. DELIVER’s MSME Access to Finance component convened the relevant stakeholders, representing sugar millers, bankers association, DTI, DoF , the Securities and Exchange Commission (SEC) that is envisioned to be the implementing agency of the Warehouse Receipts Bill, to gather and discuss sentiments on critical issues concerning the Bill. This also involved a dialogue with the Philippine Guarantee Corporation to get their buy-in to a provision where a guarantee scheme through Philippine Guarantee Corporation will be part of the proposed legislation. Consequently, DELIVER provided a business case for a new Warehouse Receipts bill to the relevant Congressional Committee. As a result, this DELIVER-supported bill was approved at the Congressional Committee level on June 3, 2020 and was officially endorsed to the Appropriations Committee, which is the next step in legislation, for further deliberation.


CROSS-CUTTING - GENDER

During this period, the Gender Equality and Social Inclusion (GESI) Analysis and Action Plan was finalized to ensure GESI issues are clearly identified and integrated throughout project implementation and was submitted to USAID on May 7th. Integrating GESI as a criterion in selection of grants under RFA 001. On May 22, DELIVER published its first Request for Applications for its MSME Recovery Grants. The goal of this RFA is to fund and support solutions that will enable MSMEs affected by the pandemic to bounce back and recover. As part of its selection criteria, proposals which have strong gender considerations will receive higher points in the evaluation, to ensure GESI issues are tracked and addressed even at the grant level. Mainstreaming Gender and Women’s Global Development and Prosperity (WGDP) Fund Indicators in DELIVER’s M&E. DELIVER’s MEL and GESI Focal Person participated in a virtual meeting with USAID and other implementing partners on the WGDP held on June 18, 2020. The WGDP is a White House led initiative that aligns with USAID’s existing women’s economic empowerment indicators. Pillar II of the WGDP Framework pertains to supporting the success of women entrepreneurs. In response to this, DELIVER will begin tracking the number of women-led enterprises supported by the project.

CHALLENGES ENCOUNTERED

COVID-19 has presented several challenges in implementation. Communications with government counterparts are now being conducted virtually. Several outreach activities were cancelled, including a number of tax roadshows and the government’s flagship Sulong Pilipinas Tourism Summit, which were scheduled to commence in April 2020. Focus group discussions, FGDs, as part of preparatory work for interventions were also delayed and will now be conducted virtually in the coming months

Despite these challenges, the team remained on track and maintained consisted communications with key stakeholders and staff resulting in new successful interventions such as the PCAB Online Renewal and GPPB Portal’s which were launched during this reporting period, and are now greatly improving the systems necessary for the recovery of the Philippines.


SECTION 2

MONITORING, EVALUATION, AND LEARNING MEL ACTIVITIES

MEL Plan. During this period, the revised Monitoring, Evaluation and Learning (MEL) Plan was submitted, integrating inputs from USAID which will track emerging and priority interventions, ensure the MEL Plan is consistent with the updated 2019-2024 Country Development Cooperation Strategy (CDCS), and aligned with the Performance Management Plan (PMP) of USAID/Philippines.

Research Support, Data Management and Reporting. Anticipating the approval of a revised MEL plan, the DELIVER MEL team continued with its data collection, management and reporting tasks, such as:

• the DELIVER MEL Team continuously reports relevant data needs to TrainetWeb as required by ADS 253 and provided reports to USAID, such as the QPR and ad hoc reports. The team also started to study the features of the USAID TEAMS – the new reporting platform replacing TrainetWeb and will start to utilize and data report in the next reporting period.

• The DELIVER MEL team also provided support to technical teams in research and data gathering for project-relevant studies, analyses, and reports.

• The MEL Team attended a series of online trainings hosted and facilitated by USAID/Philippines RPM Team. This series tackled new developments in USAID M&E Guidance and reporting requirements in relation to COVID 19, IPS, WGDP, including the new USAID/Philippines CDCS. As such, DELIVER adopted relevant updates and integrated these to the project MEL approach, in close coordination with DELIVER’s USAID COR.

SUMMARY OF PROGRESS TOWARDS PERFORMANCE INDICATORS (RESULTS WITH ANALYSIS)

OUTPUT Reporting

For this reporting period, DELIVER was able to engage with and reach out to the following:

Activity Name No. of Participants Female Male

Discussions with DBM on program budgeting and MTEF and IT infra support on program expenditures

9 3 6

Consultation with FreeBalance on BTMS 8 2 6 Consultation with DepEd re MTEF 14 6 8 Consultation with DOH re MTEF 14 6 8 Consultations with DSWD re IT infra support to program expenditures 7 3 4

Consultation with DPWH re IT infra support to program expenditures 10 4 6

Number of key stakeholders mobilized to participate (Sugar millers, bankers association, SEC, DTI and DoF)

5

3

2

RFA 001 Online Pre-bid conference 37 20 17 Total 104 47 57


The table below highlights DELIVER’s progress versus planned activities for this reporting period:

Activities

Deliverables/ Output

Q3 Progress

Legend:

Achieved Ongoing

Postponed (Due to COVID 19)

Objective 1: Fiscal performance improved

Sub-objective 1a: Domestic resources mobilized

Task 1a.1: Tax Policy

Tax Policy and Tax Administration Rapid Gap Analysis

• Recommendations on improving business processes, IT improvements and potential legislative/regulatory changes

LGU Pasig City adopts DELIVER’s proposal for the establishment of the Multistakeholders Technical Working Group (MTWG) for the Pasig City LGU Revenue Code Rationalization Initiative

Support for CITIRA and other Tax Reform Packages

• Inputs to draft CITIRA/CREATE IRR, specifically on the FIRB section

• Other analyses requested by DOF

Inputs to the IRR of CITIRA, specifically the FIRB section submitted

Other analyses requested by DOF ongoing

Support strategic communications campaign for CITIRA and other key tax reform packages

• 3-5 regional roadshows held • Media training for key DOF, DTI and other

officials from key Agencies such as DOH, DA and DSWD delivered

• Communications campaign completed

Postponed to Q4, Media Training to be conducted online

Task 1a.2: Tax Administration

Third party data-integration

• Automated exchange of third-party information between BIR and other relevant authorities (Bureau of Customs, DBM Procurement Databases, etc.) developed

Emergency Procurement Portal for the Government Policy Procurement Board (GPPB) launched to facilitate transactions for the GPH on COVID-related purchases

Capacity building support for BIR/DOF staff of data analytics unit of BIR

• BIR Data Management Strategy (data architecture, data strategy and data governance functions) developed

• Data analysis techniques and models

TA on Data Analytics for GPPB is ongoing and is a continuing activity throughout year 1. Capacity building for GPPB Procurement Portal management conducted, including data management strategy developed and implemented

Tax form simplification, and modernization • Simplified priority tax forms • Initial version of modernized E-Filing solution

developed

Ongoing. This is a continuing activity throughout year 1. Q3 Achievement: Congressional Ways and Means Committee adopts DELIVER’s inputs on private sector engagement, tax administration simplification in the Philippine Economic Stimulus Act (PESA) bill now known as the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill

Business process mapping and reengineering for 3-5 key business processes (For year 1, the priority processes are: risk-based audit selection, tax withholding, VAT refund, etc.)

• Business process re-engineering and consultations group created

• Business process analysis of 3-5 business processes • Amended Revenue Regulations for 3-5 business

processes, including process maps

Ongoing. This is a continuing activity throughout year 1.

Automation of Tax Incentives Review and Approval Process

• Draft IT Architecture of the Integrated Tax Incentive Management System developed

• Preliminary Version of Tax Incentives Management Software developed


Sub-objective 1b: Public financial management improved Task 1b.1: Expenditure Management

Update and improve the Medium-Term Expenditure Framework (MTEF) manual

• Recommendations to improve the MTEF Manual • Proposals to further update and/or revise the

MTEF manual in order to operationalize program budgeting (multi-year and cross-cutting multiple Agencies)

Recommendations to improve MTEF manual submitted to DBM, including proposals to further revise MTEF manual for program budgeting

Support infrastructure procurement policy reforms

• Gap analysis of infrastructure procurement practices with respect to international good practices

• Draft amendments to the PH procurement law and/or infrastructure procurement manuals.

DBM adopts DELIVER’s recommendation on budget realignment strategies for COVID response Ongoing. Gap analysis is currently being conducted.

Support IT procurement policy reforms

• Gap analysis of IT procurement practices with respect to international good practices

• Draft amendments to PH procurement law and/or IT procurement manuals.

Emergency Procurement Portal for the Government Policy Procurement Board (GPPB) launched to facilitate transactions for the GPH on COVID-related purchases

Support the development of a strategic communications program to ensure efficient • Strategic Communications plan

Ongoing. This is a continuing activity


Activities


Q3 Progress

Legend:

Achieved Ongoing


implementation of the Mandanas Case in 2022 • Stakeholder Map (identifying oppositors, fence-sitters”, supporters)

throughout year 1.

Objective 2: Capacity for infrastructure development strengthened Sub-objective 2a: Capability of line agencies strengthened

Assistance in Improving Strategic Infrastructure Planning, Monitoring and Evaluation

• High-level Gap Analysis developed • Policy interventions identified • Capacity Building for NEDA, DPWH, DOTR,

BCDA for Infrastructure Planning, Monitoring, and Evaluation conducted

Sponsorship of the PCAB Online Renewal Platform, reducing licensing procedures from 24 to 9 requirements which resulted in the release of about 2,000 licenses to construction firms Congressional Ways and Means Committee adopts DELIVER’s inputs on private sector engagement, tax administration simplification, better procurement practices, and liquidation of government debts to contractors in the Philippine Economic Stimulus Act (PESA) bill now known as the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill

Capacity building for DOTR on project development on a learning by doing approach (e.g. training on financial analysis and modelling, and risk profiling)

• Formal and on-the-job capacity building Postponed due to COVID-19 pandemic. Consultations will resume when feasible. This is a continuing activity up to Year 2.

Develop infrastructure procurement policy framework for DOTr, with potential emphasis on such priority infrastructure as seaports and/or airports

• Infrastructure Procurement Policy Framework developed


Improve ROW Acquisition policies and expand capacities of targeted relevant government infrastructure agencies

• Proposed ROW Acquisition policy improvements Ongoing. This is a continuing activity throughout year 1.

Conduct trainings on ROWA policy for government infrastructure agencies • Trainings conducted

Capacity building will resume when feasible and maybe extended up to Fiscal Q1 of Year 2 (FY2021)

Develop and circulate online training module on ROWA • Online training module on ROWA


Focus group discussions to identify ROWA implementation challenges • FGDs held


Development of recommendations on ROWA policy improvements

• Policy recommendations developed, classified according to level of policy (i.e. legislation, IRR amendment, or Department Manual improvements)


Provide Training-Workshops on Introduction to Data Analytics for Planning and PPP Officers and Staff of DPWH

• Training-Workshop Modules developed, and training-workshops conducted;

• Workshop Report delivered, including Recommendations for Improving Data Analytics in DPWH Infrastructure Development


Sub-objective 2b: PPP Expanded

Technical Assistance on Policy Reform Advocacies for PPP

• Policy Recommendations developed • Line agencies receive Technical assistance to

develop Draft Amendments • Report on Technical Assistance on Policy Reform

Advocacies delivered

Ongoing. This is a continuing activity throughout year 1 and activities for this sub task are projected to extend to Year 2. The gap analysis report includes policy reforms on PPP.

Support development of 3 to 5 PPP projects, including on-the-job trainings and workshops, in line with the lifecycle of the priority portfolio

• PPP Project development documents (e.g. business case, tender documents, etc.) at any stage, local and national level supported

• National Government Agencies (NGAs) and LGUs receive technical assistance

• Screening and prioritization criteria for local PPPs developed

• Infrastructure Fund Development Design developed

• Targeted Training Plan developed • Report on Training and Workshops Conducted

Ongoing. This is a continuing activity throughout year 1 and activities for this sub task are projected to extend to Year 2


Activities


Q3 Progress

Legend:

Achieved Ongoing


Support GPH (e.g. DPWH, DOTR, or an LGU) application to the ITAN-TAF for potential assistance for priority projects

• Applications of government agencies to the ITAN-TAF facilitated

Ongoing. This is a continuing activity throughout year 1 and activities for this sub task are projected to extend to Year 2. The ongoing Bohol Bypass Road Project is a potential candidate for ITAN-TAF application.

Sub-objective 2c: Interagency coordination strengthened

Support to the Technical Working Groups (TWGs) of the Convergence Programs of the DPWH

• Convergence Program Infrastructure Project Line Item Recommendations developed for inclusion in the 2021 National Budget

• Monitoring and Evaluation Report for key completed and on-going projects of the Program developed

• Report on DELIVER assistance to the Convergence Programs TWG, including Recommendations for Program Improvements developed

Ongoing. This is a continuing activity throughout year 1 and activities for this sub task are projected to extend to Year 2 due to the Covid 19 Pandemic.

Support Key Acton and Policy Advocacies in the Philippine Construction Industry Roadmap and Action Plans 2020-2030

• Stakeholders (DTI, PCA and other relevant agencies) receive technical assistance

• Monitoring and Evaluation Tool for the Roadmap Action Plans

Sponsorship of the PCAB Online Renewal Platform, reducing licensing procedures from 24 to 9 requirements which resulted in the release of about 2,000 licenses to construction firms

Objective 3: MSME competitiveness enhanced Sub-objective 3a: MSME access to finance improved Task 3a.1: Improving Access to Finance by MSMEs

Provide technical assistance to key stakeholders in the government and the private sector to explore and understand the financial landscape and identify opportunities. This will be conducted through a series of focus group discussions and relevant activities (eg Gap Analysis, roadshows)

• Report on Key Constraints to MSME Financing

(including financial landscape) • Integrated framework for MSMEs financing

Ongoing. This is a continuing activity throughout year 1 Q3 Achievement: Congressional Ways and Means Committee adopts DELIVER’s inputs on private sector engagement, tax administration simplification, better procurement practices, and liquidation of government debts to contractors in the Philippine Economic Stimulus Act (PESA) bill now known as the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill DELIVER provides a business case and technical inputs to the proposed updating of the century-old Warehouse Receipts Law that is crucial for increased access to finance of farmers and MSMEs

Support business matching activities for MSMEs buyers and suppliers, by enhancing access to finance in pilot areas taking into consideration ASPIRE’s priority areas as well as DOTs emerging tourist destinations. Possible pilot areas are Bohol and Palawan

• Recommendations to improve ASPIRE program and addressing access to financing bottlenecks

• ASPIRE business matching activity facilitated • Technical Assistance to PCCI

Ongoing and a continuing activity throughout Year 1. Q3 Achievement: DELIVER-e continues to provide platform for suppliers to move supplies and buyers to purchase online despite the ongoing pandemic.

Sub-objective 3b: Value chains strengthened Task 3b.1: Strengthening Value Chains

Tourism Sector Strategic and Value Chain Analysis. Focus on DOTs emerging tourist destinations like Bohol and Palawan looking to address the fragmented support services of the tourism sector.

• Recommendations on integration of tourism and selected agricultural value chains

• DELIVER Tourism Assistance Plan

Ongoing and a continuing activity throughout Year 1. Difficulties are currently being experienced by the entire tourism sector.

Promote private and/or government sector-led support for international tourism sector marketing focused on the emerging tourism destinations such as Bohol and Palawan

• Expanded marketing program under the strategic directions of the National Tourism Development plan 2016-2022 designed and implemented

• Local and international partnerships with international airlines promoted

Ongoing and a continuing activity throughout Year 1.


Activities


Q3 Progress

Legend:

Achieved Ongoing


Review existing value chain analysis and roadmaps on 12 priority industries, such as fisheries, coconut, mangoes, coffee, rubber, bananas, cacao, etc, as identified by the ASPIRE program. Identify one or two commodities for prioritization, determine and implement assistance programs

• Short list of priority commodities to receive DELIVER assistance (Subject to USAID Approval)

• Business and market matching events held • Gaps limiting FTAs utilization identified


Pilot business matching of pilot commodity determined by the value chain review

• Business and market matching events • Linkages facilitated between lead buyers and

MSMEs, • Technical assistance delivered from lead buyers to

MSMEs

DELIVER-e continues to provide platform for suppliers to move supplies and buyers to purchase online despite the ongoing pandemic.

Support DTI in the implementation of the new Innovations Law

• Assessment report on Start Up • Innovation Law Roadmap • Grants section criteria


Sub-objective 3c: Access to markets strengthened Task 3c.1: Improving Access to Markets Conduct rapid gap analysis and identify most binding constraints to reducing economic distance to markets as measured by LPI, WEF Economic Competitiveness Index and Trading Across Borders Doing Business Indicators

• Gap analysis report Ongoing and a continuing activity throughout Year 1.

Develop policy recommendations and/or draft amendments/regulations on one or more of the following: • Improving efficiency of container

clearance procedures / risk management at Customs;

• Standardize procedures and policy on domestic inter island port;

• Developing product standards such as fisheries and coconut for compliances to market standard.

• Policy recommendations to several sectors in support to improving MSME market access

Ongoing and a continuing activity throughout Year 1. Q3 Achievement: DELIVER-e continues to provide platform for suppliers to move supplies and buyers to purchase online despite the ongoing pandemic. Congressional Ways and Means Committee adopts DELIVER’s inputs on private sector engagement, tax administration simplification, better procurement practices, and liquidation of government debts to contractors in the Philippine Economic Stimulus Act (PESA) bill now known as the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill

GUC RFA 1 - Support for startups and small businesses

• RFA 001 Issued

Issued RFA 001 as a response mechanism to support MSME businesses affected by the COVID 19 pandemic. 24 proposals are being processed as of this reporting period.

GUC RFA 2: Strengthening value chains • RFA 002 Issued

Ongoing and this is a continuing activity up to year 2.

GUC APS Annual Program Statement • APS Issued

Ongoing and this is a continuing activity up to year 2. The grant fund is going to be leveraged to help MFIs in the country by providing liquidity (RestartME) and digitization grants for MFIs.

In the next reporting period, DELIVER looks forward to providing a full update on the progress of the performance indicators, contingent upon approval of the revised MEL plan.


SECTION 3

OUTREACH AND COMMUNICATIONS

The crosscutting communications team consistently collaborated will all project component teams to address the emerging needs for strategic communications and outreach support interventions with key GPH counterpart agencies. The move was to help the communications and outreach of the components in using the opportunities to support reforms that will facilitate economic recovery such as business process automation and economic policy advocacy.

DELIVER’s communications and outreach team has helped facilitate the establishment of the Project’s partnerships and collaborations through the following activities:

1. Engagement with the Department of Finance for the planning and implementation of the

communications strategy and media training for key government and private sector allies; 2. Planning of online regional dialogues for the key priority reform agenda of the GPH; 3. Engagement with the Department of Budget and Management for the planning stage of

Mandanas Case implementation; 4. Facilitation of virtual talks/presentations/meetings with the Pasig City LGU on the revenue

code rationalization initiative; 5. Production of information, education, and communication (IEC) materials (i.e. process flow

FAQs, audio-visual presentations) for the GPPB and the development of (public relations) PR stories to amplify their initiatives;

6. Production of PR Stories and IECs for PCAB’s Online Renewal Portal launching and public advisory guidelines;

7. Strategizing PR story releases to show synergies with the overarching umbrella of Philippine economic recovery;

8. Communications plan for the launch of DELIVER-e 9. Development and distribution of PR story releases about the DELIVER-e in various media as

well as live/taped interview with InsightSCS’ Pierre Curray about DELIVER-e and its collaboration with USAID;

10. Active collaboration with the USAID DOC Team in developing stories that highlight the impacts of the project’s activities on-ground


SECTION 4

GRANTS MANAGEMENT

DELIVER releases first RFA for COVID response, MSME recovery The DELIVER Project launches its first Request for Applications (RFA) for the grants program to develop solutions that would keep the micro, small, and medium enterprise (MSME) sector afloat during the ongoing COVID-19 pandemic. As a response, DELIVER quickly mobilized its grants facility and issued its first RFA on May 22, in coordination with USAID. RFA No. 001: MSME Recovery Grants DELIVER is working towards improving MSME competitiveness in the country. COVID-19 is a big threat to the continued operations of all enterprises in the country, particularly the MSMEs that are most vulnerable to the impact of the pandemic. Thus, the grant solicited applications from for-profit and non-profit organizations who have expertise on business incubation, enterprise development, and change management in deploying practical solutions that will provide different forms of assistance to MSMEs. DELIVER anticipates that multiple awards will be given for the grant, with each award ranging from one million to seven million pesos. Following the publication of an RFA, an online pre-bid conference was held, with at least 18 interested organizations participated, to assist prospective applicants in developing better proposals by responding to their queries, expounding on the RFA, and sharing important information and resources. Over-all, DELIVER received a total of 24 proposals out of 33 interested organizations after it closed its call for applications on June 22, 2020 with grant applications from a broad spectrum of interested organizations- from established incubators and microenterprise development institutions like Grameen Foundation and University of the Philippines-Institute for Small-Scale Industries; to big business associations like the Philippine Chamber of Commerce and Industries and its local chambers; and even upstarts or new players like the Startup Village and the Spark Project. The Grant selection committee for RFA No. 001 was also convened and will evaluate the applicants’ technical proposals, based on four criteria: 1) Feasibility of Design and Technical Approach; 2) Impact on Target Group; 3) Sustainability, Scalability, and Collaboration, and 4) Gender and Social Inclusivity. DELIVER gets green light from USAID and kicks off Grants Program The DELIVER Project will be busier this 2020 as its crosscutting component – the grants program – kicks off in the Philippines after receiving USAID approval. USAID’s investment in DELIVER comes at a critical time. Recent high-level economic reform directives, like the Comprehensive Tax Reforms Program (CTRP) and “Build, Build, Build,” represent opportunities to transform the country’s economic trajectory. Moreover, recent challenges like the COVID-19 pandemic tests the competitiveness of the micro, small, and medium enterprise (MSME) sector, requiring support from wherever they can find. DELIVER’s grants program seeks to extend resources to local non-government organizations and entities and private enterprises whose participation is deemed crucial in achieving project goal and objectives. The program will complement other components of DELIVER and allow USAID to leverage available resources from potential partners to maximize the outcomes of the project.


The following activities outlines the development of DELIVER’s grants program this quarter: Coordination with Chemonics HO The DELIVER Grants Team is working closely with Chemonics’ home-office grants team to ensure a smooth kickoff for the project first few grants. This interaction also ensures that grant activities are in line with Chemonics’ policies and procedures. DELIVER Works with ReStartME through GUC ReStartME submitted an unsolicited proposal to USAID to provide support to enterprises affected by the COVID 19 pandemic. Recognizing the potential of impact of this proposal, USAID tapped DELIVER to initiate a grant mechanism for this purpose. As part of DELIVER’s pre-award risk assessment, DELIVER mobilized a team to review the institutional capacity of ReStartME. Based on the findings, DELIVER will ensure ReStartME will be grant compliant following Chemonics’ and USAID standards. ReStart Micro-Enterprise Inc. is a non-profit, non-stock organization founded in 2016. It is a spin-off organization from USAID’s Micro-enterprise Disaster Assistance Fund for Resiliency (MIDAS Fund) Project with the Philippine Business for Social Progress. The organization has functioned as a wholesale lender to Microfinance Institutions (MFIs) during disasters. It acknowledges the need for additional capital infusion to help microenterprises to cope with the sudden shocks and impact of calamities like Typhoon Haiyan and Taal Volcano Eruption in early 2020. The DELIVER grants team continues to work with ReStartME to operationalize the grant, and a full update will be included in the next reporting period.


SECTION 5

MANAGEMENT AND OPERATIONS SUPPORT COVID’19. Due to the global COVID’19 pandemic, the DELIVER continues its operations remotely in accordance with local guidelines. The DELIVER office remains closed, and all expatriate, local, and TCN staff (long-term and short-term) continue to work from their home and engage with client and government counterparts through virtual platforms. While a timeline for re-opening of offices has not been decided, DELIVER will review local guidelines and consider several other factors to plan for a smooth re-opening of the offices.

Recruitment, onboarding and orientation of new DELIVER staff. During the reporting period, the project onboarded the Grants Assistant who is expected to provide support in the grant administration and implementation process. International and local short-term consultants were also engaged, providing much needed technical expertise and support across components of DELIVER.


ANNEX – MILESTONE FEATURES OF DELIVER

USAID-supported deliver-e platform connects agricultural producers to consumers during the covid-19 pandemic https://www.usaid.gov/philippines/press-releases/jun-1-2020-usaid-supported-deliver-e-platform-connects-agricultural https://ph.usembassy.gov/us-backed-online-delivery-platform-connects-agricultural-producers-with-filipino-consumers-during-the-covid-19-pandemic/#:~:text=DELIVER-e%20is%20part%20of%20a%20Php900-million%20USAID%20initiative,government%20agency%20for%20international%20development%20and%20disaster%20assistance.

The DIGITAL READER (USAID) https://mailchi.mp/9e5d1c4d3fcd/the-digital-reader-june-15-2020?e=f8af1ce189

DELIVER-e: Enabling farmers to thrive during ECQ and beyond (Speed Magazine, Tech Innovation Story) https://www.speedmagazine.ph/deliver-e-enabling-farmers-to-thrive-during-ecq-and-beyond/

During pandemic, farmers find home for their produce in online platform (Rappler/MovePH) https://www.rappler.com/move-ph/260227-farmers-find-home-produce-online-platform-coronavirus-pandemic

USAID backs digital channel linking farmers, consumers (Philippine Daily Inquirer) https://business.inquirer.net/298893/usaid-backs-digital-channel-linking-farmers-consumers

US-backed online platform delivers agri products amid COVID (Manila Bulletin) https://business.mb.com.ph/2020/06/01/us-backed-online-platform-delivers-agri-products-amid-covid/

Farmers get delivery channels (Manila Standard) https://manilastandard.net/mobile/article/325029

Farmers get distribution help from US through online platform (BusinessWorld) https://www.bworldonline.com/nationwide-round-up-259/

24 to 9, PCAB goes online! https://www.dti.gov.ph/archives/news-archives/24-to-9-pcab-goes-online/?fbclid=IwAR35qpaUdzTQDnHA6oB0GvOG1izM1e7OUxixdGe_fchsMopqz3QCTIuq-YA https://www.facebook.com/DTI.Philippines/posts/10158503770755116

https://www.usaid.gov/philippines/press-releases/jun-1-2020-usaid-supported-deliver-e-platform-connects-agricultural

https://www.usaid.gov/philippines/press-releases/jun-1-2020-usaid-supported-deliver-e-platform-connects-agricultural

https://ph.usembassy.gov/us-backed-online-delivery-platform-connects-agricultural-producers-with-filipino-consumers-during-the-covid-19-pandemic/#:%7E:text=DELIVER-e%20is%20part%20of%20a%20Php900-million%20USAID%20initiative,government%20agency%20for%20international%20development%20and%20disaster%20assistance.





https://mailchi.mp/9e5d1c4d3fcd/the-digital-reader-june-15-2020?e=f8af1ce189

https://www.speedmagazine.ph/deliver-e-enabling-farmers-to-thrive-during-ecq-and-beyond/

https://www.rappler.com/move-ph/260227-farmers-find-home-produce-online-platform-coronavirus-pandemic

https://www.rappler.com/move-ph/260227-farmers-find-home-produce-online-platform-coronavirus-pandemic

https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbusiness.inquirer.net%2F298893%2Fusaid-backs-digital-channel-linking-farmers-consumers&data=02%7C01%7CTanKT%40state.gov%7Cffec0b6d09eb49a4f9e508d806a1670a%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C637266637570557237&sdata=MBDJaUhbvFumPYL8E5hIpaX56Vt84TLfemnwDoHDdXs%3D&reserved=0

https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbusiness.mb.com.ph%2F2020%2F06%2F01%2Fus-backed-online-platform-delivers-agri-products-amid-covid%2F&data=02%7C01%7CTanKT%40state.gov%7Cffec0b6d09eb49a4f9e508d806a1670a%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C637266637570552260&sdata=5IPl%2BpOGht0vtZpBOIbC3wcGnYhqtlo2Irbae7WBOTw%3D&reserved=0

https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbusiness.mb.com.ph%2F2020%2F06%2F01%2Fus-backed-online-platform-delivers-agri-products-amid-covid%2F&data=02%7C01%7CTanKT%40state.gov%7Cffec0b6d09eb49a4f9e508d806a1670a%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C637266637570552260&sdata=5IPl%2BpOGht0vtZpBOIbC3wcGnYhqtlo2Irbae7WBOTw%3D&reserved=0

https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fmanilastandard.net%2Fmobile%2Farticle%2F325029&data=02%7C01%7CTanKT%40state.gov%7Cffec0b6d09eb49a4f9e508d806a1670a%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C637266637570562215&sdata=OTpgo%2FlRxj0P273kezRSqXLSGwGAnXIlgIgcl5TswUs%3D&reserved=0

https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bworldonline.com%2Fnationwide-round-up-259%2F&data=02%7C01%7CTanKT%40state.gov%7Cffec0b6d09eb49a4f9e508d806a1670a%7C66cf50745afe48d1a691a12b2121f44b%7C0%7C0%7C637266637570562215&sdata=9Z0Zo%2BtW%2B9DVdgmMgEFDPL7M4cH5Ztt%2BsU3jGlxobUo%3D&reserved=0

https://www.dti.gov.ph/archives/news-archives/24-to-9-pcab-goes-online/?fbclid=IwAR35qpaUdzTQDnHA6oB0GvOG1izM1e7OUxixdGe_fchsMopqz3QCTIuq-YA

https://www.dti.gov.ph/archives/news-archives/24-to-9-pcab-goes-online/?fbclid=IwAR35qpaUdzTQDnHA6oB0GvOG1izM1e7OUxixdGe_fchsMopqz3QCTIuq-YA

https://www.facebook.com/DTI.Philippines/posts/10158503770755116


U.S. Agency for International Development 1300 Pennsylvania Avenue, NW

Washington, D.C. 20523 Tel.: (202) 712-0000 Fax: (202) 216-3524

www.usaid.gov

http://www.usaid.gov/

Documents

USAID Report Template (A4) - Amazon AWS