30.03.11 Seite 1

DILG, DTI Launch Project to Streamline Business Permits and Licenses

MOVING FORWARDProposed Actions

Ms. Lucy LazoConsultant

GIZ Decentralization Program

30.03.11 Seite 2Page 2

BPLS Streamlining Project Context

Simplifying BPLS in the last 10 years benefited some 62 cities and 209 municipalities nationwide.

Performance standards for business registration processes announced during the BPLS Up-scaling Project on 6 August 2010 by the Secretaries of DILG and DTI.

2

30.03.11 Seite 3Page 3

Performance standards stipulated in the JMC 01 signed on 6 Aug 2010

Unified Form Standard Five steps

Securing an application form from the city or municipality

Filling or submission of the accomplished application form with attached documentary requirements

One time assessment of taxes, fees and charges

30.03.11 Seite 4Page 4

Performance standards

Securing the Mayor's Permit upon submission of Official Receipt as proof of payment of taxes, fees, and charges imposed by the LGU

Compliance will require: Inspections to be done within a year after issuance of business permit.

Bureau of Fire to enter into MoA with cities and municipalities to implement streamline procedures and paing fire code fees to enable LGUs to implement above 5

steps

30.03.11 Seite 5Page 5

Performance standards

Standard Processing Time New permits: strive for 5 days or less for

streamlined BPLS; Not more than 10 days for release of the permit

Renewals: not more than 5 days for release of permit; strive for one day or less

Signatories Mayor Treasurer or BPLO

30.03.11 Seite 6Page 6

Objectives of Consultancy

1) Review the existing knowledge products on BPLS, i.e. training manual and other outputs of the Trainers’ Training;

2) Assess the regional action plans based on the Trainers’ Training workshop;

3) Explore possible options to utilize the trainers’ pool most effectively (business model);

4) Recommend pricing and costing in the implementation of the reforms;

5) Recommend an effective and viable implementation structure of the business model.

6

30.03.11 Seite 7Page 7

Regional DTI & DILG

TOT453 Trainers, of which approx. 30% are ready for deployment

RolloutTrainings for LGUs

Output: Action plan with LGU commitment

(defined steps from current practice to streamlining

target)

Reform ProcessImplementation of

streamlined reforms according to national

standards*

LGALGACoordinated by: LGALGA DILGDILG

Milestones:

Proposed Business Model

Proposed Business Model

Aug 2010Aug 2010 Sep – Nov 2010Sep – Nov 2010 Jan 2011Jan 2011Timeline:

* National Standards• Unified form• 5 Standard steps• Standard processing time• Number of signatories

30.03.11 Seite 8Page 8

Major Results (1/3)

Only 42 percent of the targeted 108 LGUs were prepared to roll out the BPLS streamlining reforms in January 2011.

The business sector has yet to be systematically harnessed in monitoring and sustaining the streamlining reforms.

There is a Government Quality Management System (GQMS) where BPLS streamlining can be incorporated. ISO certification is another option to establish a quality assurance scheme. However, this is not recommended due to LGUs’ resistance to change/adapt once ISO certified.

8

30.03.11 Seite 9Page 9

Major Results (2/3)

There are existing incentive schemes meant for LGUs which can be tapped to encourage LGUs to undertake BPLS streamlining.

Computerization of the BPLS streamlining has been preceded by previous efforts like the e4MD and eGov, or the iBPLS by GTZ.

There has not been as much publicity around

the results of the up scaling of BPLS streamlining.

9

30.03.11 Seite 10Page 10

Major Results (3/3)

Toward universal roll out, a key cost for LGUs would be the training of front line staff as well as briefing and orientation of the LCE and other concerned officials at the LGU.

A corps of trainers and training manuals and instructional materials have already been developed with GTZ support during the last year.

LGUs must be reminded that they should allocate some funds to cover the cost of coaching and mentoring as they prepare for their streamlining roll out. Actual roll out cost can be embedded in their work and financial plan; funds to be drawn from their annual program budgets.

10

30.03.11 Seite 11Page 11

Expense item Unit costNumber of

personsTotal cost in

pesos

Air fare6,000 (assumed average

cost per person)5 30,000

Tuition, per diem, transport

11,200 5 56,000

Trainers’ mobility and professional fees

10,000 2 trainers 20,000

Mentoring and coaching 20,000

Sub-total 126,000

Executive Briefing and orientation

5,000 5,000

Sub-TOTAL 131,000

Contingency (10 %) 13,000

TOTAL 144,000

Table 7. Estimated Costs Per LGU

11

30.03.11 Seite 12Page 12

The Proposed Actions (1)

I. Universal application of BPLS streamlining to all LGUs Need for sustained social marketing, advocacy and

capacity building. Continuing capacity development of front line service

staff, including DILG and DTI staff. Continuing dialogue with partners and stakeholders

should help in vital decision making and management of reforms

II. Strengthen the monitoring and evaluation system and engage the business sector

12

30.03.11 Seite 13Page 13

Proposed Actions (2)

Develop quality consciousness among LGUs and lay the ground for a quality assurance scheme for BPLS streamlining Install a quality assurance system. Quality Management Team Quality and Operations Manual. Incentive scheme for good performers in BPL and other

LGU services

Computerization. Examine the various initiatives to computerize BPLS and endeavor to harmonize agency based systems.

13

30.03.11 Seite 14Page 14

Recommendations Agency requirements appear to be the bottlenecks

in the streamlining reforms such as the Bureau of Fire Prevention requirements. These issues need to be

resolved if the streamlining process is to come full circle.

Continuing advocacy must be pursued to get more LGUs interested in BPLS streamlining and to initiate practical actions toward streamlining.

There is a need to fast track the accreditation of training service providers and certification of coaches.

14

30.03.11 Seite 15Page 15

Recommendations

To intensify roll out in the region GTZ may consider having jump start funds for the LGUs who might be interested.

Popularize and enforce quality standards among the LGUs.

Set up a private sector led monitoring scheme This will require advocacy and dialogues with chambers to incorporate this work in their regular program

Strengthen DILG-DTI capacities to oversee and monitor.

15

30.03.11 Seite 16Page 16

Recommendations There are many initiatives at computerizing

LGU services, including BPLS. A closer look at these initiatives appears to be necessary. The discussions with the National Computer Center (NCC) may be the necessary first step.

16Presentation to the BPLS Oversight Committee

30.03.11 Seite 17Page 17

BPLS streamlining is a continuing journey…

17

30.03.11 Seite 18

Thank You!