Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 9065

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
INSTITUTIONALIZING THE COMMUNITY-DRIVEN DEVELOPMENT (CDD)
APPROACH AS A NATIONAL STRATEGY FOR INCLUSIVE GROWTH AND
SOCIAL PROTECTION, MANDATING ALL NATIONAL GOVERNMENT
AGENCIES AND DEPARTMENTS, INCLUDING THEIR ATTACHED
AGENCIES, OFFICES AND BUREAUS, LOCAL GOVERNMENT UNITS, AND
OTHER GOVERNMENT INSTRUMENTALITIES TO IMPLEMENT THEIR
COMMUNITY-BASED PROGRAMS, ACTIVITIES, AND PROJECTS,
AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

The Community-Driven Development (CDD) Institutionalization bill
seeks to address the lack of an enabling policy, a national strategy and its
mechanisms for community empowerment, by enhancing capacities for
community participation, especially the poor, vulnerable, disadvantaged,
and marginalized, in the local development process.

It reinforces the value of participatory governance by complementing
the Local Government Code (LGC) which mandates Local Government Units
(LGU), among others, to provide basic services to constituents, by specifying
the mechanisms by which the principles stipulated in the latter can be
operationalized and sustained for developing self-reliant communities.

Current mechanisms of the Local Government Code to promote
participation is limited to representation in local development councils and
local special bodies. Article 63 of the Local Government Code states that
CSOs, academe, and similar representatives must comprise at least 25% of
the membership of the Local Special Bodies. The CDD bill offers a step-by-
step process and ready technologies that were all proven to be effective in
stirring lasting active citizenship. It allows even residents who are not part
of organizations to have a voice.


With the approval of the Whole of Nation Approach and the Magna
Carta of the Poor, the CDD approach aims to achieve community
empowerment by encouraging citizens to take active roles in the community
by providing them with control over decisions and over resources in their
local development process. This will enable community members to take
charge of their development and stimulate constructive partnership between
community governments (barangay LGU) and community members in local
development planning and budgeting. This partnership is aimed to produce
community action plans which will be harmonized with LGU and pertinent
national government agencies’ (NGA) programs and budgets for
implementation.

The Department of Social Welfare and Development (DSWD), through
Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of
Social Services (Kalahi-CIDSS), has demonstrated success in delivering
basic social services, empowerment and governance outcomes making
significant contribution in poverty alleviation, community empowerment and
participatory local governance.

CDD complements the national infrastructure development programs
of the Government, such as the ‘Build Build Build’ Program, that seeks to
reduce poverty through massive infrastructure campaign. Since this
program will not actually include small community infrastructures, those
that will go to geographically isolated and disadvantaged areas, CDD shall
be the mechanism to ensure that no one is left behind in economic and
social development.

Towards this end, the policy advocacy initiatives are:

* Institutionalization of the CDD approach as a national strategy for
inclusive growth and social protection; putting communities at the
center of all development plans, budgets and strategies by mandating
all national government agencies and departments, including their
attached agencies, offices and bureaus, local government units, and
other government instrumentalities to implement their community-
based programs, activities, and projects to promote participation and
empowerment of poor, vulnerable, disadvantaged, and marginalized
communities and groups within communities;

© Institutionalization of the Kalahi-CIDSS as a CDD program of the
government for community empowerment that invests in providing
capacities and opportunities for community members, particularly the
poor, vulnerable and disadvantaged, to effectively participate in the
planning, budgeting, and implementation of community identified
programs, plans, and projects;

* Creation of an Inter-Agency Advisory Council on CDD
Institutionalization to develop policies relative to the implementation
of this Act; and


* Creation of a CDD Knowledge and Resource Institute (CDD KRI) as
the center for continuing research and technology development,
partnership development, policy advocacy, resource mobilization,
capacity-building of communities, CBOs, LGUs, NGAs and other
development stakeholders, and monitoring and evaluation, so as to
ensure the effective institutionalization and operationalization of the
CDD framework as a strategy for inclusive growth and social
protection.

In view of the foregoing, the immediate passage of this bill is earnestly

sought.

‘RED V. ‘AS


Republic of the Philippines

House of Representatives

Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. _ 9065

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
INSTITUTIONALIZING THE COMMUNITY-DRIVEN DEVELOPMENT (CDD)
APPROACH AS A NATIONAL STRATEGY FOR INCLUSIVE GROWTH AND
SOCIAL PROTECTION, MANDATING ALL NATIONAL GOVERNMENT
AGENCIES AND DEPARTMENTS, INCLUDING THEIR ATTACHED
AGENCIES, OFFICES AND BUREAUS, LOCAL GOVERNMENT UNITS, AND
OTHER GOVERNMENT INSTRUMENTALITIES TO IMPLEMENT THEIR
COMMUNITY-BASED PROGRAMS, ACTIVITIES, AND PROJECTS,
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

CHAPTER I
General Provisions

SECTION 1. Short Title. — This Act shall be known as the “Community-
Driven Development (CDD) Institutionalization Act”.

SECTION 2. Declaration of Policies. The 1987 Constitution establishes
the right of the people and their organizations to effective and reasonable
participation at all levels of social, political, and economic decision-making
shall not be abridged. The State shall, by law, facilitate the establishment of
adequate consultation mechanisms (Article XIII, Section 16). Towards this
end, and in pursuit of inclusive growth, social protection, community
empowerment, and poverty reduction, the State shall enact programs that
provide capacities and opportunities for community members — particularly
the poor, vulnerable and disadvantaged — to effectively participate in the
design, planning, budgeting, and implementation of community identified
programs, plans, and projects.


SECTION 3. Definition of Terms. For the purpose of this Act, the following
terms are defined, as follows:

a) Ancestral Domain Sustainable Development and Protection Plan
(ADSDPP) refers to a long-term plan that embodies the goals and
objectives, policies and strategies as well as programs, projects of
Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs) for
the sustainable development and management of their ancestral
domain and all resources therein including human and cultural
resources such as their indigenous knowledge, systems and practices
(NCIP AO No. 01, Series of 2014)

b) Barangay Assembly (BA) refers to a gathering of barangay residents
who are Filipino, at least 15 years old and above, and listed in the
barangay records as members of the BA (RA 7160)

©) CDD Community of Practice (CDD CoP) refers to a community of CDD

practitioners, which is comprised of agencies, non-governmental

organizations, academic and research institutions, and individuals,
that share the commitment and passion for CDD, and together strive
to advance its practice through regular and purposive interaction

Community refers to a group of people living in a particular locality or

geographical area, the location in which interventions are

implemented. It may be a barangay, ancestral domain, or specific
subsets thereof

Community action plan refers to plans formulated by community

members as a result of a participatory activity where communities

identify their key problems and development challenges and identify
solutions that can be implemented to address these challenges

f) Community-based financial management refers to the management

and direct control by the community members or groups of funds

associated with a community identified and managed project

Community-based procurement refers to an approach in implementing

Negotiated Procurement-Community Participation modality whereby

the Barangay Local Government Unit (BLGU) and/or the community

group(s) directly and/or jointly manage the planning, procurement,
implementation and monitoring of community-based projects. This
can be used interchangeably with the community-based procurement

h) Community-Based Programs refers to programs, activities, or projects
that are organized and implemented locally. By design, community-
based programs invite community members or groups to actively
design, plan, and implement intervention strategies to address
community-identified plans and needs

i) Community control of resources refers to the utilization and

management of the resources by the community members or groups

based on community-identified plans and needs

Community-Driven Development refers to a development approach that

gives control of development process, decisions-making, and resources

to community members or groups in the locality. It treats people as
assets and partners in the development process, building on their
institutions and resources

dq)

¢)

8)

j


k) Community Empowerment refers to a process of enabling community
members and groups to increase control over the factors and
decisions that shape their lives. It is the process by which they
increase their assets and attributes, and build capacities to gain
access, partners, networks, and voice, in order to gain control. It is
more than the involvement, participation or engagement of
communities. It implies community ownership and collective action
towards a specific objective, in this case local development

1) Community focus refers to programs, activities, or projects that put
primacy on the whole community

m) Community grants refers to the financial assistance provided to
communities implementing the Kapit-Bisig Laban sa Kahirapan
Comprehensive and Integrated Delivery of Social Services (Kalahi-
CIDSS) program. It can be in a form of planning or investment grant
and will be used to fund community project proposals.

n) Community-managed implementation refers to _ execution,
implementation, monitoring, and contract management of community-
identified projects by community members or groups, with assistance
from the Local Government Units (LGUs) and other local partners
Community members refers to all the residents of the locality, the
barangay, ancestral domain, or specific subsets thereof
Community Organizing refers to a longer-term engagement and
empowerment process by which members of communities are brought
together to act collectively on their shared interests, to identify
community problems and solutions, and to take action. The long-term
objectives of community organizing are to develop the internal
capabilities and to increase decision-making power and influence of
underrepresented groups in the community

@) Community Project Management Committee (CPMC) refers to a group of
community volunteers elected by the community members to provide
overall management of the community-based projects and oversee
implementation, monitoring, completion, maintenance, and
sustainability

1) Displaced population refers to people being forcefully moved from their
locality or environment and occupational activities. It is a form of
social change caused by a number of factors such as armed conflict,
natural disaster, famine, development and economic changes (DSWD
MC No. 10, Series of 2017)

s) Geographically Isolated and Disadvantaged Areas (GIDA) refers to
communities with marginalized population physically and socio-
economically separated from the mainstream society and
characterized by physical factors (isolated due to distance, weather
conditions and transportation difficulties — island, upland, lowland,
landlocked, hard-to-reach and unserved/underserved communities)
and socio-economic factors (high poverty incidence, presence of
vulnerable sector, communities in or recovering from situation of
crisis or armed conflict) (Bureau of Local Health Development, DOH)

t) Graduation Year refers to the final year wherein the Kalahi-CIDSS
program is committed to provide formal programmatic support to a

°)

P)


community because it will transition to a fully LGU-led
implementation of community-driven development programs
Horizontal and vertical linkages refers to the alignment of funding
allocation and technical support of national government sector
agencies with the identified needs of communities, as integrated in
various local development plans, and the ability of the community
members and groups to access funding resources and technical
support from various agencies and institutions. The aim is to ensure
the complementation of plans and strategies by different agencies and
institutions that is anchored on evidence-based and participatory
planning
v) One Social Preparation refers to the harmonized social preparation
process of various Social Welfare Development programs. It refers to
the conduct of common activities at the community level for
community assessment, identification of needs and interventions, and
the preparation of community action plans, which will be the basis for
funding by different development stakeholders
w) Participatory monitoring and evaluation refers to a process through
which stakeholders at various levels of the community engage in
monitoring and evaluation of a project, program, or policy, share
control over the content, the process and the results of the monitoring
and evaluation activity, and engage in taking or identifying corrective
actions. Systematically, it relies on the active engagement of the
primary internal stakeholders as the actors that accomplish the
systematic recording and periodic analysis of information that they
themselves have chosen and recorded. The primary stakeholders shall
be the community members
x) Participatory planning refers to a planning process that directly
involves the community members, leaders, and other stakeholders in
diagnosing local problems and designing a course of action to resolve
those problems. The process aims to harmonize views among all of its
participants and to provide opportunities for participation especially
for the marginalized groups in the community
y) Social Preparation refers to a process to prepare and fully capacitate
the community to become ready and responsible implementers of
programs, projects and activities. It must include activities to (i)
identify, analyze and prioritize needs, and identify solutions to
address needs; (ii) prepare proposals, studies, and technical designs
and financial plans; (iii) form committees and task groups; and (iv)
build capacity and capability to undertake the project activities
(DSWD MC No. 04, Series of 2016)
Social Protection refers to a set of policies and programs that seek to
reduce poverty and vulnerability to risks and enhance the social
status and rights of the marginalized by promoting and protecting
livelihood and employment, protecting against hazards and sudden
loss of income, and improving people’s capacity to manage risks
(NEDA-SDC Cabinet Resolution No. 1, series of 2007).
aa) Whole of Government Approach (WGA) refers to a strategy where all
instrumentalities of the government are taking unified and integrated

4

2)


action in order to provide a common solution to a particular problem
or issue. For CDD Institutionalization, the WGA is a logical and
systematic convergence of efforts of government agencies and local
government units to respond to the identified community needs,
issues, concerns, and priorities

SECTION 4. Elements of CDD. - A CDD approach is a strategy where local
communities take control in the planning, implementing and resource
investments for their local development. CDD ensures that programs
integrate the principles of local empowerment, participatory governance,
demand-responsiveness, administrative autonomy, greater downward
accountability and enhanced local capacity. Based on the ASEAN Regional
Program for Capacity Development to Enhance Accountability of Local
Governance in delivering Social Protection Programs through CDD, the CDD
process happens when all of these elements are present: (1) community
focus, (2) participatory planning, (3) community control of resources, (4)
community-managed projects, and (5) participatory monitoring and
evaluation. CDD includes but is not limited to the following processes and
activities:

a) Community empowerment process - a defined and ordered set of

community development activities that enable communities to have

control over decision-making and resource allocation to meet their

priority needs and allow local governments to provide effective and

quick response to such needs

Delivery mechanisms - a set of project implementation and

procurement systems that facilitate delivery of services to local

communities

Intergovernmental fiscal transfers — existence of legally mandated

regulations that authorize fiscal transfers from the national

government to barangay-level governments and local communities

d) Governance mechanisms - presence of formal arrangements for
structural mechanisms and policy reforms for greater participation,
rule of law, transparency, responsiveness, inclusiveness, and
accountability of local governments in performing their mandated
functions, and allowing community members, particularly those most
vulnerable, disadvantaged, and marginalized, to have access to the
systems of local governance

b)

°)

CHAPTER II
Institutionalization of the CDD Approach in
Government Programs, Activities, and Projects

SECTION 5. Institutionalization of the CDD Approach in all
community-based programs, activities and projects of government. -
All National Government Agencies (NGAs) and Departments, including their
Attached Agencies, Offices and Bureaus, Local Government Units, and other
government instrumentalities shall adopt the CDD approach in


implementing their community-based programs, activities, and projects to
promote participation and empowerment of poor, vulnerable, disadvantaged,
and marginalized communities and groups within communities.

SECTION 6. Operationalization of the CDD approach in NGAs. - The
CDD approach shall be operationalized in government programs, activities
and projects (PAPs) using the following methods and strategies, or a
combination thereof, but not limited to:

a) Government agencies shall develop policies and programs, provide
information on government intervention, and provide technical
assistance and support to the partner local government units and
communities for more effective community-driven planning and
implementation, in consultation with Advisory Council, provided in
Chapter III, Section 15 of this Act;

b) Government PAPs that have elements of local planning, budgeting,
and development process shall ensure that majority of the community
members actively participate in said process;

c) Government agencies shall regularly align community action plans, as

discussed in Chapter II, Section 14 of this Act, to agency PAPs, and

ensure that identified community priorities are sufficiently funded;

Government agencies shall use mechanisms for community-managed

implementation, as defined in Chapter III, Section 18-19 of this Act, in

the implementation of projects funded under the government PAPs;

Government agencies shall ensure that community members are

prioritized, to the extent possible, in receiving employment

opportunities brought about by project implementation at the
communities;

f) Government agencies shall include in their annual budget proposals
and multi-year plans funds for CDD implementation such as but not
limited to capacity building, staffing, and project management; and

g) Government agencies shall accredit Civil Society Organizations (CSOs)
as partners in organizing and strengthening communities, and
implementation of community-based PPAs.

d)

e)

SECTION 7. Localization of the CDD approach in LGUs. - Under the
guidance of the Department of the Interior and Local Government (DILG),
the LGUs shall be primarily responsible for:

a) Developing policies for enhancing participatory local governance
practices, improving local development planning process, giving space
to community organizations, and responding to community needs;
Providing information on government intervention, technical
assistance, and support to communities for more effective community-
driven planning and implementation;

Ensuring that community priorities and action plans are integrated in
the barangay and municipal development plans and Annual
Investment Programs (AIP), and ensure that identified community
priorities are sufficiently funded, which may be sourced from the

b)

a


Internal Revenue Allotment (IRA) and/or other funds to which they
may have access to;

d) Including in their AIP and multi-year plans funds for CDD

implementation such as but not limited to staffing, community

empowerment activities, and resources to initiate and sustain CDD
projects;

Supporting the engaged residents and subsequent organizations

formed to sustain the CDD projects as well as their gains, and impact;

f) Accrediting and ensuring participation of CSOs as partners in
organizing and strengthening communities, and implementation of
community-based projects;

g) Ensuring that engaged and accredited service providers under their
supervision shall be justly compensated, that adequate funds are
made available, and their working conditions are conducive to fulfill
national quality standards; and

h) Conducting monitoring, and evaluation activities and enabling
community members to meaningfully participate in data gathering,
processing and analysis, and especially in data utilization for their
own development.

e)

In accordance with the Local Government Code, local governments shall
adhere to the layers of local authority and supervision, from provinces, to
component cities and municipalities, and to barangays, in implementing
LGU-led CDD programs.

SECTION 8. Role of Civil Society Organization and the Academe. -
Accredited CSOs and academic institutions with experience in the CDD
approach shall be encouraged to participate in community activities,
specifically:
a) Partner with communities/LGUs/NGAs in facilitation of community
empowerment processes;
b) Provide additional funding or collaborate with partners/donors to
implement community-identified projects;
¢) Continuous capacity building and technology transfer to LGUs and
communities; and
d) Conduct third party monitoring and evaluation together with
communities and LGUs

The Department of Social Welfare and Development (DSWD) in coordination
with the Department of Budget Management (DBM) and Commission on
Audit (COA), and in consultation with other relevant national government
agencies and the local government concerned, shall implement a simplified
set of guidelines for CSO accreditation and for providing an enabling
environment for communities to participate in CDD implementation.

CHAPTER III
Institutionalization of the Kalahi-CIDSS Program


SECTION 9. Kalahi-CIDSS as a CDD program of the government for
community empowerment. - Kalahi-CIDSS is hereby institutionalized as a
CDD program of the government for community empowerment. Its mandate
is to ensure that communities become empowered to achieve increased
access to basic social services and improved resilience to disaster and other
shocks, and to participate in more inclusive local planning, budgeting,
implementation, and monitoring and evaluation of local development
activities.

SECTION 10. DSWD as Implementing Agency. - The DSWD shall
implement the Kalahi-CIDSS program, using the CDD approach in targeted
poor, vulnerable, disadvantaged, and marginalized communities. It shall
establish a working mechanism for convergence of social welfare and
development (SWD) programs at the local level by ensuring a single
harmonized, comprehensive social preparation process, that emphasizes
identification of needs and defining vulnerabilities at the grassroots through
a participatory action process and its contribution to increasing resiliency of
poor communities.

SECTION 11. Coverage and Phasing. — The Kalahi-CIDSS Program will
focus on the poor communities, and gradually expand coverage to all cities,
municipalities, and special communities. The phasing of the implementation
and expansion will be based on the approval of the Advisory Council.

The special communities shall refer to areas with characteristics that would
make it difficult to meet graduation requirements, such as but not limited to
communities with historically high magnitude and incidence of poverty,
marginalization, and vulnerability, needing special intervention from DSWD
which include, among others, GIDA areas, marginalized, and vulnerable
sectors. The limitation of the areas to be covered under the special
communities shall be based on the criteria approved by the Advisory
Council.

All_target municipalities shall be provided with capacity building,
facilitation, and community grants. The entire implementation process will
follow the regular planning and budgeting cycle of the local government. The
Advisory Council, upon recommendations of DSWD, shall approve the
criteria for assessing whether a municipality will need another round of
intervention or will be endorsed for gradual withdrawal of the complete
package of intervention, ensuring that mechanisms for sustainability are in
place, until graduation year.

SECTION 12. Funding and Resource Mobilization. — Kalahi-CIDSS will
provide community grants to poor, vulnerable, disadvantaged, and
marginalized communities to fund community project proposals selected
through a criteria-based prioritization process by the expanded Local
Development Council (LDC). The Program will employ a menu that allows
the community to choose any activity that it considers to be important for
its development, provided that support for projects with adverse


environmental and social impacts shall not be allowed. Kalahi-CIDSS will
also provide technical support to communities and local government units
in mobilizing resources from Provincial LGUs, Civil Society Organizations,
People’s Organizations, and National Government Agencies for unaddressed
priorities in the Local Development Plans specifically for big ticket PAPs
which cannot be funded through local resources.

The DSWD is directed to include resource requirements for nationwide
implementation of Kalahi-CIDSS, and ensure it is included in its annual
budget priority and such other appropriate funding sources as the DBM
may identify.

‘The LGU shall put up counterpart funds in the form of cash and/or in-kind
which may be sourced from the IRA of the government unit. Members of the
community and private _individuals/institutions including foreign
organizations may also contribute to the project.

SECTION 13. Community Project Management Committee (CPMC). - The
committee shall take care of the overall management of projects funded
under Kalahi-CIDSS following the mechanisms for community-managed
implementation. This is composed of smaller project implementation
committees where members are elected through the Barangay Assembly.
Under the guidance of the Barangay Development Council (BDC), it shall
also formulate policies and make decisions for the project. It shall oversee
project implementation, monitoring, maintenance and sustainability after
project completion.

SECTION 14. Community Empowerment Process. - The DSWD, through
Kalahi-CIDSS, will provide facilitation support to empower community
members to participate in the local development process:

a. Social Preparation. DSWD will employ the One Social Preparation
approach to complement with other SWD processes and interventions
and provide a platform for other SWD social preparation needs. The
comprehensive social preparation process and community action plan
development shall be a venue for validation and reporting of SWD
interventions, which shall be used as input to the local development
planning, and as basis for NGA targeting mechanisms and
interventions. DSWD will ensure strategic solutions are arrived by
community members by employing participatory tools and
technologies. Communities will be oriented towards better planning,
and proposing more strategic solutions that ensure efficient use of
scarce resources and reduce vulnerability. The Municipal Local
Government Operations Officer (MLGOO) shall oversee and provide
technical support and guidance to LGUs to ensure the quality of
citizens’ participation in the local decision making processes.

b. Community Planning, Project Proposal Development and Appraisal. The
DSWD, in partnership with DILG, shall ensure that community action
plans will be incorporated into the local development plans and


ensure the integration of local development plans to the national
development plans ensuring that programs, activities, and projects
prioritized for funding are responsive to community-identified needs.
It shall closely coordinate with LDCs, namely the Barangay, City,
Municipal, and Provincial Development Councils as stipulated in the
Republic Act 7160 or the Local Government Code of 1991, to ensure
that the annual plans are harmonized and operationalized for proper
and timely implementation; and

¢. Community-Based Organization (CBO) Formation and Strengthening.
DSWD will ensure at the onset of social preparation, that community-
based organizations will be formed, strengthened, and recognized as
beneficiaries to enable them to have control over future resources.

Chapter IV
Implementing Mechanisms

SECTION 15. Creation of an Inter-Agency Advisory Council. - An
Advisory Council on CDD Institutionalization shall be created at the
national level to develop policies relative to the implementation of this Act. It
shall be chaired by the DSWD and co-chaired by DILG.

It shall be composed of representatives from the agency members of
Department of Budget and Management, National Anti-Poverty Commission,
National Economic and Development Authority, Department of Agriculture,
Department of Agrarian Reform, Department of Environment and Natural
Resources, Department of Health, Department of Human Settlements and
Urban Development, and Department of Education. Representatives shall
include the Secretary of the agencies as the officially designated permanent
member and a designated Undersecretary as an alternate representative.
Representatives of non-governmental organizations shall constitute not less
than one-fourth ('4) of the members of the Advisory Council, which shall be
appointed by the Council during the first three years of the effectivity of this
Act, after which the representatives shall be selected from and appointed by
the CDD Community of Practice.

The Advisory Council may create committees and invite other agencies as
the need arises. The Advisory Council shall meet at least quarterly. It shall
recommend to the President measures and policies for the responsive
delivery of commitments under this Act and integration with the general
poverty reduction strategy of the Government.

The CDD Knowledge and Resource Institute (CDD KRI) shall provide
secretariat support services for the coordination and monitoring of the
implementation of policies and plans formulated by the Council.

SECTION 16. Creation of a CDD Knowledge and Resource Institute. —
There shall be established a non-stock, non-profit government owned and
controlled corporation with its own charter, to be attached to DSWD. The
CDD KRI is a policy, research and training arm of the Advisory Council,


which shall provide support for continuing research and technology
development, partnership development, policy advocacy, resource
mobilization, capacity-building of communities, CBOs, LGUs, NGAs and
other development stakeholders, and monitoring and evaluation, to ensure
effective institutionalization and operationalization of the CDD framework.

a) Functions and Powers of the Institute. The functions of the
Institute shall include, but is not limited to:

1. Learning and Development interventions on program
implementation and sustainability;

a. Development of CDD Resource Pool, a group of experts on
CDD principles and implementation who possess expertise in
CDD to co-develop the certification and accreditation
programs and other learning and development requirements
of the staff, partners, and other stakeholders;

b. Certification of CDD organizations, institutions, and
individual practitioners who shall either be partners of the
program or part of its human resources;

c. Continuing professional development through partner
academic institutions;

2. Resource Mobilization
a. Partnership and Linkages
b. Convergence
3. Knowledge management and technology development
4. Regular Monitoring and Evaluation; and
5. Policy Advocacy

To fulfill its purposes, the KRI shall have the following powers:

1. To collect, receive and maintain funds, donations, and other forms
of assistance and to apply the income and principal thereof to the
promotion of its aims and purposes hereinbefore set out;

2. To contract any obligation, or enter into any agreement necessary
or incidental to the proper management of its powers;

3. In general, to carry on any activity and exercise all of the powers
conferred by the laws upon private or government-owned or
controlled corporations; and to do any and all of the acts and
things herein set forth to the same extent as juridical persons
could do, and in any part of the world, as principal, factor, agent or
otherwise, alone or in syndicate or otherwise in conjunction with
any person, entity, partnership; association or corporation,
domestic or foreign.

b) Composition of the Board of Directors. The Institute shall be under
the direct supervision of a Board of Directors composed of the
Secretary of DSWD as Chairman and at least five (5) other members:

i. Secretary of the Department of the Interior Local Government;
ii. Secretary of the National Economic and Development Authority;
iii. Secretary of the National Anti-Poverty Commission; and



iv. Representatives of the Civil Society Organization and the
Academe, to be appointed by the President upon
recommendation of the Secretary.

The structure and staffing pattern shall be prescribed and approved
by the Secretary.

c) Endowment Fund. There is hereby established an Endowment Fund
which shall consist of voluntary contributions, donations, grants, or
loans from domestic and /or foreign sources, government subsidies
and other income accruing from the operations of the Institute. For
the initial organizational and operational requirements of the CDD
KRI, there is hereby appropriated out of any fund in the National
Treasury not otherwise appropriated the sum of SEVEN MILLION
PESOS (P7,000,000.00). Hereafter, funding for the operational
activities of the KRI shall be generated from the earnings generated
out of this fund, in addition to appropriations by Congress. Any
undisbursed funds from the preceding year shall form part of the
budget in the following year.

4) Socialized Fees. All application for certifications, trainings, and other
services of the CDD KRI shall be charged with corresponding
socialized fees to be determined by the Advisory Council.

SECTION 17. Implementing Agencies. - Using the Whole of Government
approach, various government agencies shall be involved in the
implementation of this Act.

a) DSWD as lead agency. Pursuant to the herein declared policy, the
DSWD shall serve as the lead agency for the implementation of this
Act. The DSWD shall integrate in their regular operations the following
functions:

i. Provide facilitation support to empower community members to
participate in the local development process and to strengthen
community capabilities to engage LGUs, NGAs, and other
stakeholders to support community-identified priorities:
Integrate the CDD approach into the local planning and
budgeting process, for more systematized community
participation in the local development processes and activities;
iii. Institutionalize capacity-building and learning on CDD for
NGAs, Non-Government Organizations (NGOs), CSOs, private
sector institutions, and other partners to enable them to do
CDD; and
iv. Support integration of the role of provincial LGUs in local
development planning and budgeting and CDD implementation.
Specifically, the provision of technical assistance and resource
augmentation by ensuring integration of municipal development
plans to provincial development plans



b) DILG as key partner in strengthening participatory local
governance. The DILG shall be a key partner agency in the
development of policies and technologies for LGUs, to strengthen
participatory local governance, institute policy and structural reforms
to ensure horizontal and vertical alignment and linkages of barangay
and municipal development plans and AIP to community-based plans.
It shall also initiate the crafting of PAPs aligned with community-
identified needs and priorities.

°)

NAPC as key partner in mobilizing the basic sectors. The NAPC
shall be a key partner agency in the development of policies and
measures to ensure meaningful representation and active
participation of the basic sectors in their local development.

4) Support from relevant government agencies. All relevant bureaus,
offices, agencies and instrumentalities of the government shall render
the necessary support to the implementation of this Act.

SECTION 18. Community-Management Implementation as Delivery
Mechanism. - All National Government Agencies and Local Government
Units shall use mechanisms for community-managed implementation of
community-based projects.

The community members, with the assistance of LGU and other local
partners, shall participate in project implementation, monitoring, and
management. Community-based organizations shall be formed to operate,
manage, and maintain community projects.

For projects that are employing community-managed implementation,
guidelines of the Revised Community Participation in Procurement Manual
as approved by the Government Procurement Policy Board (GPPB) shall
apply. The community shail be involved as members of the Bids and Awards
Committee (BAC), BAC Secretariat, Technical Working Group and observers
of the procurement process.

SECTION 19. Intergovernmental Fiscal Transfers. - For projects that are
employing community-managed implementation, guidelines for community-
based financial management shall apply which includes but is not limited to
community participation in the management and control of funds,
bookkeeping and reporting, and closing of accounts.

The implementing agency shall enter into a memorandum of agreement
(MOA) with the concerned LGUs with provisions such as, but is not limited
to, prompt delivery of local counterpart contributions (LCC) and the opening
and maintaining of a Trust Account.

The implementation shall be made in accordance with the community-based
finance guidelines and policies which shall ensure that government funds


are safeguarded. Financial transactions shall be supported by established
disbursement processes, reporting mechanisms and internal control
systems to ensure that management and utilization of funds promotes the
principles on the use of government public funds. This is relative to the
Manual on Barangay Financial Management of Barangays prescribed by the
Commission on Audit relative to the Republic Act 7160.

The key partner agencies and other relevant government agencies shall help
the DSWD in the strict implementation of the financial management system
at the local government unit, and impose sanctions for any violation in this
guidelines and applicable regulations.

CHAPTER V
Miscellaneous Provisions

SECTION 20. Special Intervention for Indigenous Peoples. - To address
the unique needs of the Indigenous Peoples and to reinforce the state policy
recognizing their rights and protecting their ancestral domains, preserving
their cultural integrity and ensuring that they are in equal footing from
rights and opportunities, the local government units, government agencies,
and other instrumentalities of the government, in coordination with National
Commission on Indigenous Peoples, shall ensure the following:

a) Automatic representation of Indigenous Peoples in decision making
within the BDC regardless of land tenurial ownership and number of
IP population, as long as it is identified or recognized that IPs are
present in the community;

b) Utilization of the Ancestral Domain Sustainable Development and
Protection Plan as the major reference and consideration in
addressing needs and providing interventions in IP areas and
integration of the ADSDPP in the Local Development Plan of the
B/LGU;

c) Fund allocation for the conduct validation in IP areas and
implementation of identified needs of IP communities;

d) IP areas as priority in terms of the delivery of basic social services as
these communities are located in Geographically Isolated and
Disadvantaged Areas (GIDA).

SECTION 21. CDD Approach in Community-Based Disaster Risk
Reduction and Management (DRRM).- To reduce the disaster risk,
prepare communities for disasters, and address the needs of communities
affected by disasters, the CDD approach shall be adopted as a strategy for
community-based DRRM.

SECTION 22. Particular consideration for needs of marginalized
sectors. - CDD implementation shall ensure that marginalized sectors
including IP members of the community, women, children, people of diverse
sexual orientation and gender identity and expression (SOGIE), youth, older
persons, internally displaced persons, rebel returnees, recovering drug


dependents, and persons with disability will be represented in decision-
making activities in the community.

SECTION 23. Incentives. - The CDD elements or implementation status
shall be included as additional criteria for the recognition given to LGUs
such as but not limited to Seal of Good Local Governance (SGLG) and other
awards by NGAs.

CHAPTER VI
Final Provisions

SECTION 24. Joint Congressional Oversight Committee. - Upon
effectivity of this Act, a Congressional Oversight Committee, hereafter
referred to as CDD Oversight Committee, is hereby constituted. The
Committee shall set the overall framework to review the implementation of
this Act. It shall likewise determine the inherent weaknesses in the law and
recommend the necessary remedial legislation or executive measures.

The CDD Oversight Committee shall be composed of twelve (12) members,
with the chairpersons of the Committee on People’s Participation of the
House of Representatives, and Committee on Social Justice, Welfare and
Rural Development of the Senate as Co-Chairpersons; and two members
from each House from the Committees on Good Government and Public
Accountability and People’s Participation.

The CDD Oversight Committee shall conduct a review of this Act, which
shall include a systematic evaluation of the impact of this Act,
accomplishments of the program, and performance of its implementing
Agencies, every three (3) years. The committee shall also perform such other
duties and functions as may be necessary to attain the objectives of this Act.

SECTION 25. Regular Monitoring and Reporting. - The CDD KRI shall
monitor the implementation of this Act and submit an annual report of its
status to the oversight agencies and the joint congressional oversight
committee. The said report shall also be regularly posted and updated for
the public’s information. A process assessment shall be conducted by DSWD
once every three years, the results of which shall be utilized to stimulate
more program lessons exchange, experience sharing, public dialogues,
policy discussions and generating inputs for program design works on CDD.
Mechanisms for promoting third-party monitoring and evaluation of the Act
by NGOs and CSOs, together with community members and LGUs, shall
also be established.

SECTION 26. Grievance Mechanism. - A Grievance Redress Mechanism
shall be established to address complaints and concerns raised by any
stakeholder or concerned citizen relating to the implementation of this Act.
An appointed representative of the DSWD shall head the Grievance


Committee present at the regional and national level tasked to accept,
investigate, and facilitate resolution of complaints and grievances.

SECTION 27. Penalty. — Upon finding that a department, agency, or
instrumentality of government, government-owned and -controlled
corporation, or local government unit has violated any provision of this Act
and its implementing rules and regulations, the sanctions under
administrative law, civil service, or other appropriate laws shall be
recommended to the Civil Service Commission and/or the Department of the
Interior and Local Government. The person directly responsible for the
violation, as well as the head of the agency or local chief executive shall be
held liable under this Act. Filing a complaint under this Act shall not
preclude the offended party from pursuing other remedies available under
the law and to invoke any of the provisions of existing laws, including the
Civil Service Code and the Local Government Code.

Any public officer or private person committing any graft and corrupt
practices in the implementation of this Act, including but not limited to
mismanagement of public funds, shall be punished based on the penal
provisions of existing laws.

SECTION 28. Appropriations. - The amount needed for the
implementation of this Act shall be charged against the appropriations of
concerned government agencies in the current and subsequent General
Appropriations Act. Donations and other forms of assistance may also be
accepted in accordance with applicable laws and issuances for purposes
relevant to the implementation of this Act.

SECTION 29. Implementing Rules and Regulations. - Within six (6)
months from the effectivity of this Act, the DSWD shall, in coordination with
national government agency members of the Human Development and
Poverty Reduction Cluster (HDPRC), in consultation with league of
barangays, cities, municipalities, and provinces and relevant stakeholders,
promulgate the rules and regulations necessary for the effective
implementation of the provisions of this Act.

SECTION 30. Non-Impairment Clause.— Nothing in this Act shall be
construed as to diminish, impair, or repeal rights recognized, granted, or
made available to disadvantaged, marginalized, or specific sectors under
existing laws.

SECTION 31. Separability Clause. - If any provision of this Act or the
application of such provision to any instrumentalities or entities or
circumstances is declared invalid or unconstitutional, the other provisions
not affected thereby shall remain valid and subsisting.

SECTION 32. Repealing Clause. - All laws, decrees, executive orders,
administrative orders or parts thereof inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.


SECTION 33. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation in the Philippines.

Approved,