The Department of Finance is ready to provide local government units with quicker access to climate financing through proper resource mobilization and private sector participation, Secretary Benjamin Diokno said.
“The DOF stands ready to assist LGUs in the realization of their climate projects, thus advancing the Philippines’ climate agenda as envisioned in the President’s 8-Point Socioeconomic Agenda of establishing livable and sustainable communities,” Diokno said during the 16th Global Warming and Climate Change Consciousness Week from Nov. 19 to 25, 2023 which is hosted by the Climate Change Commission (CCC).
The DOF has been directing more strategic resources for better adaptive capacity at the local level, investing in resilient communities and local governments, and mobilizing resources for social protection.
As chair of the People’s Survival Fund (PSF) Board, the DOF approved 11 climate adaptation projects and six projects for Project Development Grant (PDG) with a combined amount of P889.6 million. This increased the PSF’s utilization rate to 89 percent, leaving only 11 percent of the initial allocation of P1 billion.
The PSF was established under Republic Act No. 10174 in 2012 to finance adaptation programs and projects of LGUs and accredited local and community organizations.
Two primary issues hindered the swift processing of project approval by the PSF Board. These are the lack of capacity to prepare bankable projects and the tedious procedures.
Upon taking up the role of PSF Secretariat in 2017, the DOF initiated measures to expedite fund utilization and streamline the project proposal process.
The capacity-building function was delegated to the CCC, which now collaborates individually with LGUs to conduct one-on-one consultations to guide proponents through the drafting process and necessary paperwork for PSF grants.
