city development strategy report for laoag city 9 … alliance project output city development...

Cities Alliance Project Output

City Development Strategy Report for Laoag City 9 Mar 2009

City Development Strategies in the Philippines: An Enabling

Platform for Good Governance and Improving Service Delivery

P098173

This project output was created with Cities Alliance grant funding.

City Development Strategies Report | 1

CITY DEVELOPMENT STRATEGIES IN THE PHILIPPINES: AN ENABLING PLATFORM FOR GOOD GOVERNANCE AND IMPROVING SERVICE DELIVERY

The CDS3 Project is a technical assistance grant funded by Cities Alliance and

supported by the Asian Development Bank, Japan International Cooperation

Agency, UN-Habitat, and the World Bank. The CDS project was developed

in response to the need to introduce an integrated, comprehensive, and

participatory approach to urban management. Founded on the principles

of livability, bankability, competitiveness and good governance, the CDS

process guides the cities in the preparation of comprehensive, long-

term development strategies, where the city government involves local

stakeholders in the entire strategic planning process-assessment, visioning,

strategy formulation and project prioritization and capital investment

planning-through a series of consultations.

The World Bank implemented the pilot phase in the 1999 with 7 cities.

Since then, the League of Cities of the Philippines, carried out 2 succeeding

phases, which expanded the program to 58 cities in all. In 2001, the Up-

scaling Poverty Focused City Development Strategies (CDS2) covered

31 new cities. In 2005, the project CDS in the Philippines: An Enabling

Platform for Good Governance and Improving Service Delivery (CDS3)

added 15 new cities to the roster of CDS cities in the Philippines. Under

the preparation grant for the City Development and Investment Project,

the League also carried out CDS for 5 new cities. As of 2008, 64 of 120 cities

have participated in the CDS program, including 3 cities assisted by ADB

under the Cities without Slums Project (Caloocan, Quezon and Taguig),

and the 3 cities that participated in the Local Environmental Planning and

Management Project of the UNDP (Lipa, Cagayan de Oro and Tagbilaran).

For more information on CDS, you may visit http:www.cdsea.org

ContactMayor : Hon. Michael V. FariñasAddress : City Hall, 2900 Laoag City, Ilocos Norte Tel. Nos. : (077) 7720001; 7731788Fax No. : (077) 7713168Mobile No : (0918) 9088826Email : [email protected] URL/web : www.laoag.com

C D S 2 0 0 8

Laoag CityI LO CO S N O R T E , P H I L I P P I N E S

C I T Y D E V E LO P M E N TS T R AT E G I E S I N T H E P H I L I P P I N E S

A n Enabling Pla tform for Good Governance and improving Ser vice Deliver y

C I T Y D E V E L O P M E N T S T R AT E G I E S R E P O R T

CDS Core TeamHon. Michael V. Fariñas - City Mayor

Hon. Yvonne B. Ranada - SP Member

Hon. Constante F. Dancel, Jr. - SP Member

Ms. Gloria F. Peralta - City Administrator

Ms. Maria Luisa F. Castro - City Planning and Development Coordinator

Mr. Edgar R. Pascual - City Accountant

Ms. Carlina V. Cumigad - City Budget Officer

Ms. Corazon Lillian Celia C. Rin - Social Welfare Officer III

Technical Working GroupMr. Oscar R. Recta - City Agriculturist

Dr. Renato R. Mateo - City Health Officer

Ms. Lilian R. Abijero - City Civil Registrar

Engr. Fred C. Agpaoa - Asst. City Engineer

Ms. Elena V. Asuncion - ICO, City Treasurer

Mr. Joseph H. Tamayo - Community Affairs Officer IV

Engr. Wilfredo R. Miranda, Jr. - Statistician II

TABLE OF CONTENTS

PAGE

SELECTED URBAN KARTE INDICATORS

INTRODUCTION 2

SITUATION ANALYSIS 8

LIVABILITY 8

COMPETITIVENESS 9

BANKABILITY 10

GOOD GOVERNANCE 10

VISION AND CITY BRAND 11

STRATEGIES 12

ANNExES

CAPITAL INVESTMENT PLAN 14

SUMMARY CAPITAL INVESTMENT PLAN 28

FINANCIAL ANALYSIS 30


A1

A2

A11

A7

A15

A17

A

B

C

A18

A

B

C

D

L1

L11

L14

L30

L41

L45

C18

A

B

C

D

C29

C32

B3

B4

FP2 - B

FP2 - D

2000 population

Total Population (2005)

Population Growth Rate (2000-2005)

Administrative Land Area (Km2)

Urban Population (projected 2005)

Number of Households (2000)

Estimated Employment by Industry Sector

Primary (agriculture, fishery, forestry)

Secondary (manufacturing, mining, processing)

Tertiary (services, banking, insurance, wholesale/retail trade)

What are the City’s geographical advantages?

Regional/provincial center

Accessibility to an airport of international standards

Accessibility to a port of international standards

Others (please describe)

% of HH with access to piped water (level 3)

Cohort survival rate for elementary (2005)

Cohort survival rate for high school (2005)

Infant mortality rate

Crime solution efficiency rate

Number of HH living in informal settlements

Building permits issued within the last 5 years

Residential

Commercial

Agricultural

Institutional

Unemployment rate (2001 vs. 2005)

% population with undergraduate degree

% Total Debt Servicing Needs to Total Regular Income

% of savings to expenditures (2007)

Per Capita Allocation to Health Services

Per Capita Allocation to Education Sector

INDICATORS LAOAG

94,466

99,880

1.12%

127.47 Km2

39,437

19,751

149

538

9,979

yes

yes

yes

accessibility to NCR and other provinces

58.30%

99.08%

95.08%

3.48%

86.25%

none

2,067

344

14

37

5.77%

14.19%

10.94%

9.63%

286.37

81.11


G2

G2

G7

G11

1

2

3

4

5

6

7

8

9

10

11

Average Number of days to issue a NEW business license (w/ complete documents)

Average Number of days to RENEW business license (w/ complete documents)

% of local revenue/total revenue

Frequency of meetings of the Local Development Council (LDC)

ADDITIONAL DATA (from the survey)

Poverty Incidence

Performance of elementary children in NAT

Performance of high school children in NAT

Percentage of participation of Local Special Bodies (LSBs) in public hearings conducted

Presence of ELA (if yes, proceed to questions 6 and 7; if no, proceed to question 8)

Percentage of Projects implemented from ELA derived from CLUP

Percentage of Projects implemented from AIP derived from ELA

No. of registered small and medium industries (2001 vs 2005 for all types)

Number of barangays practicing segregation at source and served by an MRF

Percent of waste generated diverted from disposal

Presence of sanitary landfill

INDICATORS LAOAG

1

1

56.76

twice a year

10.96%

74.35

45.77

50%

Yes

75%

100%

195

51

89.50%

Yes

2 | City of Laoag City Development Strategies Report | 3

INTRODUCTION

Location

The City of Laoag is located at the west central part of the Province of Ilocos Norte bordering the South China Sea. It is bounded on the east by the Municipality of Sarrat, in the southeast by the Municipality of San Nicolas, in the southwest by the Municipality of Paoay, in the northeast by the Municipality of Vintar, in the northwest by the Municipality of Bacarra, and in the west by the South China Sea. Laoag City may be reached via the Manila North Tollway, 488 kms. from Manila.

Land Area

Laoag City has a total land area of 127.4735 square kilometers. It consists of 80 barangays, 30 of which are urban and 50 are rural . The land available for development is 1,596.76 hectares as per land use plan.

An area of 930.847 hectares is occupied by the urban core or the poblacion, while 11,816.501 hectares are occupied by the rural barangays.

Population

Laoag City has a total population of 99,880 for the year 2005 based on the official report published by the Population Commission. In 2000, the total inhabitants of the city was 94,446, an increase of 5,434. The City’s average annual growth rate is 1.12%..

The growth trends over the last 5 years was primarily due to birth and in-migration (4.78%). Brgy 1 San Lorenzo(787) has the highest increase in population while the most dense barangay is Brgy. 14 Sto. Tomas (211/sq.km.).

Physical Characteristics

Based on a geohazard analysis, portions of the City are vulnerable to tsunamis, slitation/erosion, and flooding.

The city, which is located at the west central part of the Province of Ilocos Norte, becomes a natural water drain during heavy rains. Most flood prone areas are those along the river and other water bodies within the

city. Flooding, however, is now contained because of the construction of the Integrated Drainage System and the SABO Dam and Flood Control. Although Laoag City is along the South China Sea, the possibility of experiencing a tsunami or tidal wave is remote.

The Bangui Fault Line runs along the province from Bangui going southeast passing through Vintar, the municipality just east of Laoag.

Geographical Advantages

Laoag is strategically located at the west central part of the province of Ilocos. It is the capital of Ilocos Norte plays the following functional roles in relation to other towns, to the Province and to the region:

• Educational,Commercial, InformationandCommunicationCenterofthe province

• AccessibleinanInternationalAirport

• AccessibilitytoanInternationalSeaport

• IdentifiedasECOZONEbyPEZALaw(R.A.7916)


A. Ilocos NorteB. CagayanC. ILocos SurD. IfugaoE. IsabelaF. TarlacG. La UnionH. PangasinanI. Nueva EcijaJ. Aurora

AB

C D E

FG

H I

J

Laoag City

Adams

Laoag City

Pagudpud

Burgos Bangui

Dumaheg

Bacarra

Pasuquin

Paoay

Currimao

Badoc

Carasi

Solsona

Marcos

Nueva Era

Vintar

PiddigSarat

Batac

Pinili

Dingras

Bannar

Mindanao

Visayas

Luzon

Laoag City

South China Sea


COMPETITIVENESS

Background :

• TheAirportcaterstoflightstoandfromnearbycountries

• HasanefficientanddynamicTourismandSocialConcernsCouncil

• In 2001, tourist arrivals registered a total of 104,668. Of this figure,94.97% were domestic tourists. In 2005, there were 164,746 where 79.92% were domestic tourists

• Ofourtotallandarea,58.54%isdevotedtoagriculture

• 94.23% of the 63,624(63.70%) economically active population aregainfully employed

Key Opportunities/Strengths :

• InternationaltransporthubwithanInternationalAirportandSeaport

• HallofFameAwardee–GawadPangulosaK.A.P.A.L.I.G.I.R.A.N.

• Has a proven track record in the Discipline/Peace and OrderCampaign

• 58.74%ofitslandisdevotedtoagriculture

• Fertileagro-land

• EfficientandeffectiveTechno-PinoyCenter

Main Development Challenges :

• Lackofresearch/trainingcenters/institutions

• Needtomodernize,improveandupgradetheLIAandtheSeaportofCurrimao.

• LimitedNGOs,POs,andprivate-sectorinitiatedprojectsinadvancingtourism concerns

• Inadequatefundsfordevelopingandenhancingnatural,historicalaswell as man-made attraction/s

• Limitedjobopportunities.

• Rapid urbanization and commercial/economic advancement ofnearby LGUs

• Needtomaximizeitspotentialforforeigninvestorsandtouristsfromnorthern neighboring countries (i.e. China and Taiwan)

SITUATION ANALYSIS

LIVABILITY

Background:

• 57.64%familieshaveaccesstopotablewater(level3)

• One(1)PrimaryHospitaland40healthcentersservicingthetotalcitypopulace of 99,880.

• Thecityhas44elementaryand11secondaryschools.

• HeartDiseasesremainstobethetopcauseofmorbidity.

• Thecityisvisitedbyanaverageof12typhoonseveryyear,2ofwhichare super typhoons.

• Crimesolutionefficiencyis86.25%.

• Tourismisathriving industryandthis ismanifestedbythe influxoftourists (foreign and local)

Key Opportunities/Strengths:

• 100%energized;surplusofpowersupply

• Abundanceofwaterresources

• Goodairandwaterquality

• Lowcrimerate

• ResiliencyandindustriousnessofIlocanos

• Highlyskilled&trainablelaborforce

• EducationalcenterforthemostpartofNorthernLuzon

Main Development Challenges:

• Needformodernandadvancedmedicalfacilities

• Needtoexpandcoverageoflevel3watersupply

• Needforadditionalclassroomsforsecondaryschools.

• Institutionalize “Saving All Lives And properties Knowledgeably,NotablyInBarangays”(S.A.L.A.K.N.I.B)–aDisasterRiskManagementPreparedness of the City.

• Needtodevelopidentifiedeco-tourismsites


• Outofitstotalrevenuein2005,56.76%isfromitsIRAshare.

• Public participation in the city’s various undertakings is throughpulong-pulong, membership in other local special bodies, participation in public consultations, monthly People’s Day.

• Thereare28NGOmembersintheCityDevelopmentCouncil.

• Public disclosure initiatives and feedback mechanism such as theRang-ay ti Barangay (Progress of the Barangay), a continuing outreach program


• Trainableworkforce

• Effectivepartnershipwiththeprivatesector

• Efficientorganizationalstructureandoperationalsystem

• Presence of an efficient public disclosure program and feedbackmechanism

• Presenceofprogramforincentivesandawardsforcityemployees


• Needtoencouragetheprivatesectortoshareintheprovisionofbasicservices and utilities

• Needtointroduceotherresourcegenerationandresourcemobilizationschemes.

• Needtore-assessthecapabilityofthecitygovernmenttoeffectivelyutilize its resources

• NeedtoinstitutionalizetheOne-Stop-Shop

• Needtoinstitutionalizevaluesformationactivities

• Needforcapacitybuildingactivities

• Needtoempowerthepeople

CITY VISION

By the year 2022, Laoag, the Sunshine City and Northern Gateway of the Philippines, will be a “Metropolitan Center in the North” where economic growth and development abound for its people to equitably share and enjoy.

• Absence of investment promotion activities, incentives and supportmeasures for investors.

• Needtodeveloptheidentifiedeco-tourismsites

BANKABILITY

Background :

• TheCityhasanaveragesavingsof9.63%comparedtoExpendituresfor the past 5 years.

• TheCityhasavailedof3loansfromDBPamountingtoP187.4Mfrom1997 to 2004. Average debt servicing was 10.94% from 2001 to 2005.

• IRAdependencydecreasedfrom65.11%in2001to56.76%in2005.


• Identifiedasindustrialestate/ECOZONE

• Financial,commercialandcommunicationcenteroftheprovince

• NortherngatewayofthePhilippines

• IncludedintheNorthLuzonGrowthQuadrangle(SuperRegions)


• EnticinginvestorsfromnearbyAsian/ASEANcountries

• Establishmentofanewcommercialcenter

• Encouragingmorecommercialactivities

• Establish commercial linkages with other highly urbanized localgovernment units

• Needforlinkstoregional,nationalandinternationalmarkets

GOVERNANCE

Background :

• TheCityhasatotalworkforce(cityemployees)of788ofwhich670are regular. Fifty-0ne percent (51%) of its total revenue is allotted for personal services


Laoag is envisioned to become a secondary metropolitan center in the northern part while maintaining its present functional roles earlier mentioned.

To attain this vision, the city shall capitalize on its diversified economic base and strategic location in undertaking strategic policies, programs, projects along with the development schemes of commercial growth, industrialization and eco-tourism.

Attaining the vision shall elevate the city from its present status as a Primary Urban Center (Large Town) playing the role of a capital town and inter-regional center to Secondary Metropolitan Center with the expected role as international production and distribution center with such facilities like the international airport, tertiary specialized medical facilities, comprehensive industrial and commercial establishments, world-class tourism facilities and state-of-the-art educational facilities.

Nickname : Sunshine City

Brand : The Northern Gateway of the Philippines

STRATEGIES

LIVABILITY:

1. Provision of modern and advanced medical facilities

Laoag, as a metropolitan center, shall be expected to provide high-end, state-of-the-art tertiary facilities, hence, this strategy is given high priority. The existence of modern and advance medical facilities will provide security in terms of medical services for would-be investors and tourists.

2. Establish strong partnership with the local water district for expansion of level 3 coverage

One aspect that really attracts tourists and investors into a certain area is the presence of adequate and efficient utility services, one which is the water system. It is therefore, imperative that the city government maintain a strong partnership with the local water district.

COMPETITIVENESS:

1. Encourage public-private sector investment partnership in agro-related industries by providing them a favorable investment climate

2. Establish strong partnership with the private sector in the development and improvement of tourism sites and tourism- related facilities

The private sector, as trend indicates, is a key player in the industrialization process. To attract investments into the city, there will be a need for policy development in terms of providing the necessary investment incentives as well as putting up the needed infrastructure facilities and utilities, thereof.

BANKABILITY:

1. Productivity improvement on revenue generation, allocation, mobilization and utilization

2. Initiation of new resource generation and resource mobilization schemes to minimize dependency on Internal Revenue Allotment

These strategies go hand-in-hand, that if the city government succeeds in initiating or adopting new resource mobilization schemes to minimize dependency on the Internal Revenue Allotment (IRA) share from the national government, it will ultimately mean that productivity has improved in generating revenues as well as on revenue allocation, mobilization and utilization.

GOVERNANCE:

1. Institutionalize the One-Stop-Shop through the expansion of the City Hall (Phase II).

The construction of a new structure will house the One-Stop-Shop with appropriate staff for a more systematic processing of business permits and other similar concerns as well as other city front line offices such as the Office of the City Civil Registrar and the Office of the City Budget Officer.

2. Encourage the Private Sector to share in the provision of basic services and utilities

As the city at present is the only one undertaking the delivery of public services and the provision of public utilities and facilities such as the collection of garbage. In this way, the Private Sector can also help on a larger scale, the generation of revenues.


Project Name Total Project Cost 2007 2008 2009 2010 2011 2012-2022 Mode of Financing

CAPITAL INVESTMENT PLAN

1 Enactment of Incentive Code

Mode of Financing

a. Budgetary Surplus/Savings

b. Tax collection improvement

c. Revision of City Revenue Code

d. Income from projects - user charges

e. Bank loan

f. Bond flotation

g. BOT/Joint Venture

h.Grant/subsidyfromNG,&others

T o t a l

2 General revision of Real Property

Tax / Revision of the Revenue Code

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

3 Laoag City Medical Center

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

200,000.00

200,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

200,000.00

500,000.00

500,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1,000,000.00

552,000,000.00

0.00

0.00

42,000,000.00

0.00

0.00

0.00

0.00

510,000,000.00

552,000,000.00

200,000.00

200,000.00

200,000.00

500,000.00

500,000.00

500,000.00

212,000,000.00

42,000,000.00

170,000,000.00

212,000,000.00

0.00

0.00

170,000,000.00

170,000,000.00

170,000,000.00

0.00

0.00

170,000,000.00

170,000,000.00

170,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

LGU Savings

LGU Savings/

Surplus

ODA-Grant, LGU

LGU Counterpart

ODA-Grant


1,000,000.00

500,000.00

500,000.00

1,000,000.00

500,000.00

5,000,000.00

5,000,000.00

2,000,000.00

2,000,000.00

2,000,000.00

Project Name Total Project Cost 2007 2008 2009 2010 2011 2012-2022 Mode of Financing


4 Development of Identified

Eco-tourism Sites

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

5 Expansion of the Laoag City Hall

(Phase II)

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

6 Establishment of Solid Waste

Management System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

1,000,000.00

500,000.00

0.00

0.00

0.00

0.00

0.00

0.00

500,000.00

1,000,000.00

10,000,000.00

5,000,000.00

5,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

10,000,000.00

5,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

5,000,000.00

0.00

5,000,000.00

500,000.00

5,000,000.00

5,000,000.00

3,000,000.00

3,000,000.00

3,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

LGU

PS Investment

LGU Funds

Private Sector

Private Sector


40,000,000.00

0.00

0.00

00.00

Project Name Total Project Cost 2007 2008


7 Establishment of Traffic

Management System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

8 Establishment of Wastewater

Treatment System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

9 Establishment of Industrial

Estate

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

40,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

40,000,000.00

40,000,000.00

100,000,000.00

100,000,000.00

100,000,000.00

3,000,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

3,000,000,000.00

0.00

3,000,000,000.00

20,000,000.00

20,000,000.00

20,000,000.00

0.00

0.00

2009 2010 2011 2012-2022 Mode of Financing

20,000,000.00

20,000,000.00

40,000,000.00

40,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

ODA, Private Sector

Private Sector

ODA

ODA Grant


40,000,000.00

0.00

0.00

00.00



7 Establishment of Traffic

Management System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

8 Establishment of Wastewater

Treatment System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

9 Establishment of Industrial

Estate

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

40,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

40,000,000.00

40,000,000.00

100,000,000.00

100,000,000.00

100,000,000.00

3,000,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

3,000,000,000.00

0.00

3,000,000,000.00

20,000,000.00

20,000,000.00

20,000,000.00

0.00

2000,000,000.00

2000,000,000.00

2000,000,000.00


20,000,000.00

20,000,000.00

100,000,000.00

40,000,000.00

40,000,000.00

2000,000,000.00

2000,000,000.00

2000,000,000.00

0.00

40,000,000.00

30,000,000.00

30,000,000.00

2000,000,000.00

2000,000,000.00

2000,000,000.00

0.00

30,000,000.00

30,000,000.00

30,000,000.00

2000,000,000.00

2000,000,000.00

2000,000,000.00

0.00

30,000,000.00

0.00

2000,000,000.00

2000,000,000.00

2000,000,000.00

ODA, Private Sector

Private Sector

ODA

ODA Grant


0.00

0.00

2,300,000.00

2,300,000.00

2,300,000.00



10 Commercial Complex

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

11 Expansion and sustainability of the

Geographical Information System

Treatment System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

12 Expansion of potable water

supply

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

100,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

100,000,000.00

0.00

100,000,000.00

10,000,000.00

10,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10,000,000.00

2,300,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2,300,000.00

2,300,000.00

0.00

3,000,000.00

5,000,000.00

5,000,000.00

0.00


50,000,000.00

50,000,000.00

50,000,000.00

5,000,000.00

5,000,000.00

0.00

25,000,000.00

25,000,000.00

25,000,000.00

0.00

0.00

15,000,000.00

15,000,000.00

15,000,000.00

0.00

0.00

10,000,000.00

10,000,000.00

10,000,000.00

0.00

0.00

ODA-BOT

LGU Counterpart

Private Sector


2,000,000.00

2,000,000.00

2,000,000.00

1,000,000.00

1,000,000.00

1,000,000.00

300,000.00

300,000.00

300,000.00



13 Conversion of Controlled Dumpsite

to Engineered Sanitary Landfill

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

14 Construction of Integrated

Drainage System

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

15 Establishment, development and

promotion of industries engaged

in the processing of agricultural

products

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

200,000,000.00

0.00

0.00

5,000,000.00

0.00

0.00

0.00

0.00

195,000,000.00

200,000,000.00

200,000,000.00

0.00

2,000,000.00

8,000,000.00

0.00

190,000,000.00

0.00

0.00

0.00

200,000,000.00

1,000,000.00

300,000.00

0.00

0.00

0.00

0.00

0.00

0.00

700,000.00

1,000,000.00

43,000,000.00

3,000,000.00

40,000,000.00

43,000,000.00

1,000,000.00

1,000,000.00

1,000,000.00

700,000.00

700,000.00

700,000.00


50,000,000.00

50,000,000.00

50,000,000.00

4,000,000.00

4,000,000.00

4,000,000.00

0.00

35,000,000.00

35,000,000.00

35,000,000.00

0.00

00.00

190,000,000.00

190,000,000.00

0.00

0.00

35,000,000.00

35,000,000.00

35,000,000.00

0.00

00.00

0.00

0.00

LGU, ODA-Grant

LGU Counterpart

ODA-Grant

LGU, Bank Loan

LGU

LGU

Bank Loan

LGU

LGU Counterpart

ODA-Grant

35,000,000.00

35,000,000.00

35,000,000.00

4,000,000.00

4,000,000.00

0.00


0.00

500,000.00

500,000.00

500,000.00

0.00



16 Provision of adequate pre and post

harvest facilities

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

17 Institutionalization of Capacity

Building and Value Formation

activities

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

18 Expansion of Animal Breeding

Station

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

50,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

50,000,000.00

50,000,000.00

500,000.00

500,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

500,000.00

5,000,000.00

0.00

1,000,000.00

0.00

0.00

0.00

0.00

0.00

4,000,000.00

5,000,000.00

0.00

0.00

1,000,000.00

1,000,000.00

1,000,000.00


20,000,000.00

20,000,000.00

20,000,000.00

0.00

2,000,000.00

2,000,000.00

2,000,000.00

0.00

15,000,000.00

15,000,000.00

0.00

2,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

LGU

LGU

LGU/NGA

LGU Counterpart

PS

0.00

15,000,000.00

15,000,000.00

0.00

2,000,000.00

2,000,000.00

2,000,000.00


0.00

0.00

0.00



19 Establishment of Child-Minding

Drop-in Center

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

20 Fish Nursery of Tilapia and Bangus

Fingerlings Production

Mode of Financing





e. Bank loan

f. Bond flotation



T o t a l

5,000,000.00

0.00

0.00

500,000.00

0.00

0.00

0.00

0.00

4,500,000.00

5,000,000.00

1,000,000.00

1,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1,000,000.00

500,000.00

500,000.00

500,000.00

0.00


2,500,000.00

2,500,000.00

2,500,000.00

1,000,000.00

1,000,000.00

1,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

LGU/PS Fundings

LGU Counterpart

ODA-Grant, NGA

LGU

LGU Counterpart

ODA-Grant

2,000,000.00

2,000,000.00

2,000,000.

00

0.00

7,000,000

1,000,000

44,000,000

0

0

0

2,000,000

172,800,000

226,800,000

Mode of Financing Total 2007 2008

SUMMARY OF CAPITAL INVESTMENT PLAN





e. Bank loan

f. Bond flotation


h. Grant/subsidy from NG, and others

Grand T o t a l

18,000,000

8,000,000

55,500,000

0

190,000,000

0

3,105,000,000

907,000,000

4,283,500,000

5,000,000

7,000,000

3,500,000

0

0

0

203,000,000

230,700,000

449,200,000

2009 2010 2011 2012-2022

6,000,000

0

4,000,000

0

0

0

250,000,000

304,500,000

564,500,000

0

0

0

0

190,000,000

0

215,000,000

80,000,000

485,000,000

0

0

0

0

0

0

2,210,000,000

35,000,000

2,245,000,000

0

0

4,000,000

0

0

0

225,000,000

84,000,000

313,000,000


Financial Analysis

A detailed study was made on the income and expenditures of the city for the past 5 years (CY 2001-2005) reviewing the trends. As per analysis, however, the growth rates computed were not reliable, hence, these were not taken into consideration in making the forecast from 2006 to 2012.

The figures presented in the analysis for 2006-2007 were taken from the annual budget for 2006 and the proposed 2007 annual budget.

As to revenues, the following assumptions were made:

1. There will be an increase ranging from 2% to 10% from CY 2008 to 2012.

2. Estimated savings were also included. For the past 5 years, average savings rate was 9.63%.

3. Adjustment in IRA share was included in 2007 because what was projected in the 2007 annual budget was the level for CY 2006.

4. Income shall increase as a result of the General Revision of Real Property Tax and the revision of the Revenue Code.

5. A proposed reduction in market rentals in 2007 (5%), 2008 (10%) and 2009 onwards (15%) to encourage full occupancy in the Laoag City Commercial Complex.

Forecast in expenditures from 2008-2012 is based on the level of needs of the different sectors. Budget proposals were required from the various offices concerned to determine expected expenditures. We also took into consideration the expected implementation of the Salary Standardization Law III, hence, the 5% increase on Personal Services from 2008 to 2011. The cityexpects to fullypay the loansas follows: 2008–LaoagCityCentralTerminal,2009–LaoagCityCommercialComplexand2010–IntegratedDrainage System.

On the overall, projected income shall be more than enough to cover projected expenditures with net surplus to fund projects identified in the Capital Investment Program.

32 | City of Laoag

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