20Nov%202005

Nabunturan,Compostela Valley

Improving Barangay Roadsfor Economic Growth:

Infrastructure Development

Improving Barangay Roads for Economic Growth: Infrastructure Development in Nabunturan, Compostela Valley Copyright © 2005 Philippines-Canada Local Government Support Program (LGSP) The Philippines-Canada Local Government Support Program encourages the use, translation, adaptation and copying of this material for non-commercial use, with appropriate credit given to LGSP. Although reasonable care has been taken in the preparation of this book, neither the publisher and/or contributor and/or editor can accept any liability for any consequence arising from the use thereof or from any information contained herein. Printed and bound in Manila, Philippines Published by: Philippines-Canada Local Government Support Program Unit 1507 Jollibee Plaza Emerald Ave., Pasig City 1600 Philippines Tel. Nos. (632) 637-3511 to 13 www.lgsp.org.ph This project was undertaken with the financial support of the Government of Canada provided through the Canadian International Development Agency (CIDA).

Improving Barangay Roads for Economic Growth: Infrastructure Development NABUNTURAN, COMPOSTELA VALLEY

Philippines-Canada Local Government Support Program (LGSP) Documentation of LGU Exemplary Practices

Replicable Practice

IMPROVING BARANGAY ROADS FOR ECONOMIC GROWTH:

INFRASTRUCTURE DEVELOPMENT IN NABUNTURAN, COMPOSTELA VALLEY

(2ND Class Municipality)

CONTENTS

Summary

2

Project Description: A better approach to road maintenance

3

History: Finding a solution in pooling resources

4

Results: Improved roads lead to economic growth

4

Key Implementation Steps

6

Analysis and Lessons Learned: A model for innovative infrastructure development

11

Annex:

Annex A – SB Resolution Appropriating Funds for the Project

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Summary The Barangay Roads Improvement program is a joint innovative effort of the municipal and barangay governments of Nabunturan in Compostela Valley province in sharing limited resources for infrastructure development. Launched in 2001, the project’s main strategy is to pool the funds of all barangays for road maintenance into one general fund, which was administered and managed by the municipal government. The municipal government takes on the responsibility of maintaining all barangay roads by maintaining a pool of personnel and equipment and scheduling year-round civil works improvements in the various barangays. The strategy has been effective in maximizing the use of limited resources available for infrastructure development. All barangay roads are now regularly maintained and contribute to local economic progress by easing the transport of farm produce and other goods from the remote agricultural areas to the town center, as well as facilitating the delivery of farm inputs to farmers. LGU revenues have also been given a boost because of additional earnings from equipment rentals to private contractors. Working relations between the municipal and barangay governments have also improved, as the municipal government gained barangay officials’ confidence, trust and cooperation in its concrete efforts to deliver needed services. Through the project, barangays have also started to realize the value of maintaining roads to promote poverty reduction and agricultural productivity and have started their own efforts in this direction.

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Project Description: A better approach to road maintenance Nabunturan is a 2nd class municipality in Compostela Valley province. With 62% of its land area devoted to agriculture and 41% of its labor force earning a living through farming, Nabunturan’s economy is largely agriculture-based. Most Nabunturan farmers, however, had difficulties making a viable living due to the rising prices of farm inputs and the poor state of barangay roads used in transporting their farm produce to the market. Previous attempts at improving road maintenance had been mostly unsuccessful. The LGU had earlier acquired a Php 9 million loan from the Land Bank of the Philippines (LBP) to acquire brand-new heavy and light equipment for road maintenance, including a dump truck and an excavator. Unregulated and inefficient use of the equipment, however, caused the failure of the initiative to provide any benefits to the municipality. The municipal government had previously provided an annual budget to each barangay for road maintenance. Barangays then customarily engaged private contractors to undertake the work. This proved both costly and ineffective, as it often resulted to delays and poor quality of work. Some barangays even diverted their road maintenance funds to other uses. This showed that barangays lacked the capacity to manage the funds, deal with private contractors, and design and implement infrastructure projects.

Basic Profile: Nabunturan, Compostela Valley Location: located at the northeastern part of Compostela Valley Land Area: 24,120 hectares Population: 62,478 Poverty incidence: 45% Income class: 2nd class IRA: Php 47.276 M Local Revenues: Php 64.473 M No. of barangays: 28 Land use/Terrain: inland, generally flat and mountainous Major industries/economic activities: mainly agricultural, with coconut, corn, rice, banana, rubber as major crops; other industries include agro-metalcraft and woodcraft

Thus, Mayor Macario Humol started his first term in 2001 by changing the way barangay road maintenance was being approached and implemented. Instead of providing each barangay with a separate budget, Mayor Humol convinced barangays to pool these funds and allow the municipal government to both manage the pooled resources and take responsibility for barangay road maintenance for the entire municipality.

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Project Objectives After a series of consultations, all barangays and the LGU agreed on the road maintenance scheme and decided on the following objectives for the project: Improve the state of barangay roads to support agricultural productivity Optimize the use of the barangay road maintenance budgets and existing resources/equipment Deliver quality services to residents in all barangays Promote infrastructure development in the barangays

Project History: Finding a solution in pooling resources Having served as Municipal Agriculture Officer, Vice Mayor, Sangguniang Bayan (SB) member, and Executive Assistant for Infrastructure Projects to Governor Prospero Amatong, Mayor Humol had deep knowledge and experience in addressing the linked problems of poverty reduction, infrastructure development and agricultural development. Thus, Nabunturan’s 2001 Executive Agenda (EA), crafted during his first term, focused on infrastructure development as a major strategy for spurring agricultural growth and reducing poverty. Because of his credibility and vast experience, Mayor Humal was also able to convince barangays to merge barangay funds for road maintenance, with the municipal government, through the Municipal Treasurer’s Office and Municipal Engineer’s Office (MEO) as main administrator. Results: Improved roads lead to economic growth After three years of implementation, the project has provided remarkable gains for Nabunturan. These include the following: • Improved barangay roads facilitating agricultural activities. To date, the LGU

has opened 50 kilometers of barangay access roads while maintaining 200 kilometers of roads on a yearly basis. Well-maintained access roads facilitate the smooth transport of agriculture inputs and products between rural barangays and poblacion areas.

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• Optimal use of funds for

barangay road maintenance. With the LGU serving as project administrator, the annual budget for barangay road maintenance has been fully utilized. Diversion of funds has been eliminated, with the Municipal Treasurer’s Office managing the cash flow. The road maintenance budget was also used to fund the construction of a motor pool building where heavy and light equipment were housed and maintained, operated by competent, highly skilled staff. Efficient use of the funds and extra income generated has also enabled the LGU to acquire additional road equipment, costing a total of Php 6.1 million. These include 4 dump trucks, 2 excavators, 1 grader, 1 payloader, 1 bulldozer and 1 trackcavator.

• Enhanced technical capacity of the LGU for infrastructure development. Because of the project, the LGU has put in place a organized and highly-skilled team responsible for undertaking road maintenance and other infrastructure projects while maintaining all its heavy and light equipment in good running condition. It has accumulated, and now maintains, a wide range of road equipment that has significantly increased its capacity for road maintenance and infrastructure development. The LGU has also built a motor pool building to house the equipment and installed effective operational procedures.

• Economic gains for the LGU. There have also been unexpected economic

gains for the LGU. With the improved road network, residents have been encouraged to pay their real property taxes (RPT) to the LGU. In 2003, Nabunturan topped the RPT collection contest in the province, registering the highest RPT revenues. The LGU also receives extra income from renting out its heavy equipment to private contractors in the area. With these revenues, the LGU has been able to fully repay its Php 9 million loan to the LBP.

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• Improved conditions for agriculture in the municipality. The project has also spurred the LGU to initiate more projects to help agricultural development. A farm tractor has been purchased by the LGU and rented out to farmers on a ‘Plow Now, Pay Later’ scheme; farmers paid the rental fee two weeks after harvesting. Many corn farmers have availed of and benefited from the scheme, as it allows them to undertake farm work with limited funds.

• Increased barangay awareness on access road maintenance. When the

project started, all 28 barangays were solely dependent on the LGU for their road maintenance requirements. In the course of project implementation, 10 barangays have started to allocate budget for road maintenance from their own development funds (20% IRA). This manifests the barangays’ increased recognition of their responsibility for and growing commitment to road maintenance

Key Implementation Steps Nabunturan undertook the key implementation steps described below in undertaking its road maintenance and improvement project. 1. Conducting consultations and building consensus on the project

As a first step, Nabunturan’s mayor held meetings with the heads of offices of the Treasury, the Municipal Assessor, Engineering, and Planning and Development and then mobilized these department heads to conduct separate consultations at the barangay level.

2. Obtaining legislative support

After a consensus had been reached and barangay support firmed up, the project details were put into writing and submitted for approval to the local legislative council (Sangguniang Bayan or SB). A series of consultations with the SB members and barangay officials were conducted to secure a municipal ordinance that would serve as the legal basis of the project.

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3. Formalizing arrangements between the municipal and barangay governments

After legislative support has been obtained, a Memorandum of Agreement (MOA) was signed by the municipal government and the barangays to formalize the arrangement and define the roles and responsibilities of all parties in the project. The MOA stipulated that the LGU would be responsible for maintaining all barangay roads, formulating a program of work that includes scheduling of road work, procuring materials and mobilizing skilled workers and equipment. The barangays, in turn, agreed to turn over their annual road maintenance budget allocation amounting to Php 70,000/barangay/year to the municipal treasury in exchange for these services. (See Annex A for SB Resolution Appropriating Funds for the Project)

4. Designating and training an operations team

Nabunturan’s mayor designated skilled personnel from the Municipal Engineering Office (MEO) and sent them on a two-week exposure and training exercise to neighboring LGUs (Tagum City, New Bataan and Monkayo) with existing motor pooling systems. Nabunturan’s operations team was then placed under the MEO. It was headed by a motor pool supervisor, with team members consisting of the following:

Operations – includes equipment operators and drivers Repairs and maintenance – one chief mechanic, junior mechanics and one auto-electrician/vulcanizer Security – watchmen

5. Conducting an information campaign to raise barangay awareness on the project

Nabunturan also conducted an information campaign in all the barangays to inform residents of the new scheme and build community appreciation and support for the project. The information campaign helped in gaining residents’ cooperation and

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assistance in road maintenance; residents helped secure the equipment left in the work sites, assisted in clearing areas of debris before and after civil works, and provided needed assistance to road workers in dealing with minor problems.

6. Installing policies and procedures

Operational policies and procedures installed include the following: A program of work and schedule for road maintenance that called for rotating the use of the equipment to ensure that all barangays are covered Criteria for prioritizing barangay requests Schedules and requirements for equipment maintenance Rental fees and arrangements for equipment use by private contractors

Barangay scheduling was initially done with barangays drawing lots; later the road improvement schedule was synchronized with the holding of barangay fiestas, meaning road improvement was scheduled just before the celebration to ensure that roads were in good condition during the event. On the average, however, each barangay outside the poblacion is serviced on a quarterly basis or four times every year.

7. Assigning/purchasing road maintenance equipment

Nabunturan started with 2 dump trucks, 1 excavator and 1 rented grader. With additional revenues and responsible fund management, the LGU was able, over time, to purchase additional equipment worth Php 6.1 million; it now has 4 dump trucks, 2 excavators, 1 grader, 1 payloader, 1 bulldozer and 1 trackcavator. The team also successfully pushed for the construction

of a motor pool building to house the equipment and serve as quarters for the motor pool personnel.

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Maintenance of equipment was also regularly conducted. This required a budget for regular checkups, spare parts, fuel, oil and lubricants, and outside labor implements. Monday was designated as service day for all equipment to ensure that each unit was in good running condition. (For LGUs that have yet to acquire road maintenance equipment, the operations team as well as other LGU officials may need to discuss and determine what equipment is required for the project and which facilities should be installed. After equipment has been identified, canvassing of prices/unit costs can be undertaken; budgets for the purchase may need to be submitted and approved before purchases are made. An LGU may initially invest in a secondhand or reconditioned payloader, grader and 2 dump trucks; this may entail an initial capital investment of Php 3 million. To open new roads, an LGU needs additional equipment like a bulldozer, excavator, backhoe, roller, etc.)

8. Undertaking actual road maintenance operations

Nabunturan then set up the following process for the servicing and maintenance of barangay roads:

• Filling up the Equipment Rental Request Order (ERRO) by the barangays

from the MEO • Drawing up the detailed program of work (POW) by the MEO for approval

by the LCE • Equipment scheduling and dispatching by the Motor Pool In-Charge • Actual work/road maintenance by the MEO in partnership with the

barangays that provide labor. Food for the driver and other key MEO personnel may also be provided by the barangays as additional counterpart to the project

• Monitoring and evaluation on site by the barangay officials and MEO

In addition to undertaking road maintenance, an important part of Nabunturan’s project operations is the consistent and effective maintenance of its road equipment. This is undertaken by its repair and maintenance crew composed of one chief mechanic, junior mechanics and auto-electrician/vulcanizers, and welders. Around Php 300,000 is allocated for equipment maintenance every year.

9. Undertaking monitoring and evaluation

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Nabunturan also undertook regular monitoring and evaluation of the project, by creating and using standard M & forms. Because of his years of experience in managing infrastructure development projects, Mayor Humol was also very involved and employed a personalized or “hands-on” approach in monitoring project implementation.

10. Ensuring sustainability

Nabunturan’s sustainability mechanisms include the following: Ensuring proper maintenance of equipment and purchasing additional equipment Ensuring responsible management of revenues generated from the project and their utilization in further improving the capacities of the personnel running the operations Continuously developing the technical capacity of the LGU by acquiring more road equipment to upgrade operations and maintaining the high level of skills of the motor pool team

Having a captured market also helps the LGU sustain the project’s operations and explore the revenue generation potentials of the project. Plans are underway to officially declare the motor pool operations as an economic enterprise and optimize rentals of equipment to private contractors and individuals. The LGU is also in the process of expanding its fleet of heavy and light equipment to provide more services.

Matrix of Key Implementation Steps Key Implementation Steps

Expected Outputs Person/ Agency Responsible

Budget/ Resources Required

1. Conducting consultations and build consensus for the project

Consultations conducted and consensus built for the project; barangay support obtained

LCE, department heads (MEO, Treasurer, Assessor, Budget, Planning and Development)

Budget and personnel (heads of treasury, assessor, planning and development, engineering, budget) to conduct consultations

2. Obtaining legislative support

Supporting ordinance for the project

SB support, budget for lobbying, committee hearings and public hearings, if needed

3. Formalizing arrangement between municipal and barangay governments

MOA between barangays and LGU

LCE, barangays

Barangays’ support

4. Designating and training an operations

A trained operations team

LCE Committed and skilled personnel

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Key Implementation Steps

Expected Outputs Person/ Agency Responsible

Budget/ Resources Required

team Budget for training and capacity development activities

5.Conducting an information campaign in the barangays to raise awareness on the project

Information campaign conducted

LCE, operations team, department heads, barangay officials

Budget for conducting the information campaign Barangay officials’ support

6. Establishing operational policies and procedures

Policies and procedures established

LCE, MEO, Operations team

Budget for meetings

7. Assigning/ Purchasing the necessary equipment

Operational structures, procedures and equipment in place

Operations team, MEO

Budget for operations (Php 145000/year for salaries in Nabunturan) Equipment (initially Php 3

million for secondhand equipment, including 1 payloader, 1 grader and 2 dump trucks) Maintenance budget (Php

145,000/year in Nabunturan) Building may also be needed to

house the equipment and personnel

8. Undertaking actual road operations

Road improvements MEO, operations team

Budget for operations Personnel Equipment

9. Undertaking monitoring and evaluation

Monitoring and evaluation reports

MEO, operations team, LCE

Budget for monitoring and evaluation

10. Ensuring sustainability

Sustainability measures LCE, MEO, operations team

Budget for further capacity development, purchase of additional equipment and facilities

Analysis and Lessons Learned: A model for innovative road maintenance

Nabunturan’s success shows that pooling limited resources is a good strategy for delivering infrastructure support services. In addition, Nabunturan’s experience also highlights several lessons that other LGUs may find valuable in undertaking similar projects. These include the following:

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LGUs can be innovative in fulfilling a traditional mandate such as road maintenance, instead of keeping to customary and expensive practices of hiring consultants and obtaining loans. By daring to be innovative and trying new ways of doing things, an LGU can improve its services and even earn additional income.

Infrastructure development especially in rural barangays is critical in supporting poverty reduction programs and agricultural development. For Nabuntaran, which was highly agriculture-based, this meant improving barangay access roads. Increasing people’s awareness and recognition of the link between infrastructure development and economic growth will ensure support and appreciation for such efforts.

Combining limited barangays funds to produce a bigger budget is especially effective for infrastructure development, as this usually requires large expenditures. A local chief executive can effectively convince barangays to relinquish management of barangay road funds by ensuring that all barangays equally benefit from the project.

A road improvement scheme like Nabunturan can be both self-sustaining and income-generating if responsibly and effectively managed. It can be a wise investment of LGU resources and serves as a more viable alternative to the common LGU practice of acquiring loans for such investments, which usually results in unmanageable debt burdens for LGUs.

Replicating Nabunturan’s success in managing road maintenance and improving the overall condition of its road network, however, may require a significant capital investment, for purchasing equipment, constructing/renting a building to house such equipment, and training and maintaining a highly-skilled technical team. As such, only LGUs in the same (or higher) income class as Nabunturan may be able to undertake a similar project. It is also crucial that all barangays support the project to ensure that barangay funds can be utilized. LGUs that have more limited resources may seek external assistance (congressional funding or grants) or explore joint undertakings with other municipalities for a similar project. Aside from the lessons presented above, Nabunturan’s experience also highlights the following critical elements for success that a replicating LGU may need to keep in mind: Highly-skilled trained personnel willing to do the hard work and committed to achieving the project’s goals

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Proper management of project funds and capacity to plough back revenues earned from the project to build up the motor pool and improve operations

Ensuring barangay officials’ and communities’ continued support to the project, to ensure that barangays remain committed to allowing the LGU to manage their road maintenance funds and allow only the LGU to undertake road maintenance, to the exclusion of other contractors

Delivering consistent, fair and quality service to all barangays Acquiring the necessary road equipment and ensuring their proper maintenance through the creation of a qualified and properly-training motor pool team. Nabunturan recommends that equipment be purchased directly from the supplier, which ensures a cheaper price

Leadership and credibility of the LCE and other municipal officials who are able to gain the trust and confidence of barangays for such a scheme.

Who to contact if interested in replication: Nabunturan Mayor Macario Humol Mr. Freddie Coronica, MPDC Address: Municipal Hall of Nabunturan, Compostela Valley Province Tel. (084) 376-1072 Annex:

A. SB Resolution Appropriating Funds for the Project

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Annex A: SB Resolution Appropriating Funds for the Project

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