LGUs allowed to implement infra projects worth P10M and below

The Department of Budget and Management (DBM) has amended rules on how local governments can obtain money from the support fund allocated under this year’s budget, particularly on infrastructure projects.

Under Local Budget Circular (LBC) No. 105 dated Oct. 29, which amended LBC No. 104 released last March, DBM said local government units (LGUs) could now secure funding from the 2014 Local Government Support Fund (LGSF) for their respective infrastructure projects as well as implement these projects on their own.

“LGUs may implement infra projects costing not more than P10 million,” the amended circular signed by Budget Secretary Florencio B. Abad read. The earlier circular did not have this provision.

As for infrastructure projects that would cost over P10 million, LBC No. 105 noted that these “can be implemented by LGUs with technical capability/expertise” but only after they have secured an endorsement letter from the Department of Public Works and Highways.

The public infrastructure projects that LGUs may undertake are construction, rehabilitation, repair or improvement of local roads and bridges, public markets, slaughterhouses, multipurpose buildings, multipurpose pavements, pathways, footbridges, police and fire stations, jails, flood control as well as water supply systems.

LGSF could also be spent to buy or install pipes, pumps and tanks to be used in developing water supply systems for local water districts.

The new rules also mandate all projects to be rolled out under LGSF must be implemented within a year and “shall not need future commitments to render the project/s viable.”