Millenium Development Goals Fund (MDGF)
MILLENIUM DEVELOPMENT GOALS (MDG) FUND OR MDG FUND
Q: What is the MDG fund?
It is a locally-funded project jointly implemented by OPDS/DILG and the Municipal Development Fund Office (MDFO)/DOF, with DILG responsible for capacity development, particularly on project preparation, implementation and operation and maintenance, and MDFO for Fund administration of the P500 M made available by MDFO from its Second Generation Fund (SGF) for relending to interested and eligible LGUs. The MDG Fund finances projects supportive of the attainment of Millennium Development Goals 1 – 7 such as those on water, sanitation, health, education and other socio-economic projects.
Q: What LGUs are eligible for this financing?
- 4th-6th class municipalities
- all provinces regardless of income class, borrowing for their 4th-6th class municipalities
Q: How can an LGU avail of this financing?
The Local Chief Executive writes a Letter of Intent to the Director, Office of Project Development Services, DILG or to the Executive Director, Municipal Development Fund Office, DOF. The Letter of Intent is accompanied by a brief description of the project. If the LGU and the project are both eligible for financing, the LGU is advised to submit documents for the issuance of a Certificate of Borrowing Capacity by the Bureau of Local Government Finance (DOF), and a Sanggunian Bayan resolution authorizing the Local Chief Executive to enter into relevant agreements relative to the project. Pro-forma of the SB Resolution is provided by MDGF.
A feasibility study (FS) is submitted to MDFO for evaluation. The FS may be prepared by the LGU, may hire a consultant, or it may request technical assistance from the DILG. If found feasible by MDFO, the project is approved for financing under the MDG Fund
Q: What are the projects eligible for financing under the Fund?
Projects that clearly contribute to the attainment of any or all of Millennium Development Goals 1-7 and included in the LGU Local Development Plans, such as those on health, poverty-reduction, water, sanitation, education and other socio-economic projects. Examples include but are not limited to:
- Livelihood programs/projects such as cottage industries, handicraft industries, livestock production, etc., including construction of livelihood centers/support facilitiesConstruction/rehabilitation/improvement of
- water supply systems
- access roads such as farm-to-market roads, footbridges
- public auction markets
- health care centers
- day-care centers/pre-school institutions
- RHUs/lying-in clinics which may include equipment and supplies
- municipal/barangay wharves/ports
- Construction/provision of women’s resource centers and livelihood centers. Procurement of various seedlings and other farm equipment and other farm implements
- Procurement of heavy equipment for SWM, road construction/ maintenance. Establishment of HIV/AIDS and STD counseling and surveillance center/desk. Construction/installation of solar driers, multi-purpose pavement, post-harvest facilities, food processing, rice and corn mills, warehouses.
Q: What are the loan terms and conditions of MDG Fund?
MDGF has three (3) financing packages:
Softer support / Light equipment e.g. procurement of light equipment, goods, seed capital for livelihood and similar items
Interest rate : 7.5% per annum, fixed
Repayment Period : 5 years inclusive of 1 year grace period on principal
Heavy equipment e.g. procurement of heavy equipment such as farm tractors, garbage trucks, dump trucks, pay loaders
Interest rate : 7.5% per annum, fixed
Repayment period : 10 years inclusive of 3 years grace period on principal
Civil Works/Infrastructure such as construction and rehabilitation of educational facilities, health-related facilities, water supply facilities and similar items
Interest rate : 8.0% per annum, fixed
Repayment period : 15 years inclusive of 3 years grace period on principal
ContactDepartment of the Interior and Local Government Regional Office I
San Fernando City,