DOF urges LGUs to tap funding facilities

MANILA, Philippines — The Department of Finance (DOF) has urged local government units (LGUs) to tap two funding facilities aimed at helping communities adapt to climate change and implement development projects.

During a recent visit to Guiuan, Eastern Samar, Finance Secretary Carlos Dominguez III told LGUs to take advantage of the government’s People’s Survival Fund (PSF) and the Municipal Development Fund (MDF).

He said the PSF was set up to provide grants to local communities to help them build climate change-resilient communities, while the MDF provides affordable loans to LGUs to fund the construction of water systems, roads and other infrastructure projects.

“The first one is a fund that provides grants for climate change adaptation. So these are (for the) protection of your shores, in case there are higher tides due to the adverse effects of climate change; maybe solar electricity that we can help fund; water projects; and building shelters for emergencies,” Dominguez said.

“We also have the MDFO which provides long-term and low-cost loans for municipalities to build public markets, build water systems, build roads, as well as municipal halls. We are very open to that and it’s our office that manages these funds,” he said.

The finance chief made the call before mayors of the different towns in Eastern Samar where he committed to bring personnel from the Municipal Development Fund Office (MDFO) and the Bureau of the Treasury.

He said the representatives would provide them with detailed presentations of the programs and accept applications from interested LGUs.

According to the DOF, the MDF is a special revolving fund established for relending to LGUs to enable them to tap funds from local and international sources for the implementation of their respective development projects.