Program for Local Economic Development

through Enlightened Governance

and Grassroots Empowerment
(PLEDGE)

CONCEPTUAL AND OPERATING

FRAMEWORKS
PROJECT DESIGN, OBJECTIVES
AND TARGETS
PROJECT DESIGN

Nature of Project : Institutional Development and Capacity

Building of BDA, LGUs and Communities

Major Activities : Development of Systems, Tools and

Methodologies for Enlightened Governance
and Grassroots Empowerment

Methodology : Participatory Action Research and Development

involving the BDA, LGU, local partners and
citizens through their People’s Organizations

Intervention Programme : Local Economic Development (LED) starting from

local supply chain, community-based enterprises,
market support structures, promotion of
agro-aqua industrial development for MSME-BLI

Tools and Strategies : Community and group organizing, skills training,

enterprise and social entrepreneurship
development, stakeholders mobilization
OBJECTIVES in the
PROJECT DOCUMENT

DEVELOPMENT OBJECTIVE:
To contribute to confidence and peace building efforts
through LOCAL ECONOMIC DEVELOPMENT and sustainable
livelihood creation in conflict affected areas in Mindanao

IMMEDIATE OBJECTIVE
IMMEDIATE OBJECTIVE 1:1: IMMEDIATE
IMMEDIATEOBJECTIVE
OBJECTIVE2: 2:
Creation of
Creation of sustainable
sustainable livelihood
livelihood BUILDING
BUILDINGCAPACITY
CAPACITYOFOFTHE
THELOCAL
LOCAL
opportunities centering
opportunities centering on
on the
the DEVELOPMENT
DEVELOPMENTAGENCY,AGENCY,NAMELY
NAMELYTHE THEBDA,
BDA,
development of
development of COMMUNITY-
COMMUNITY- to
toimplement,
implement,monitor,
monitor,evaluate,
evaluate,and
and
BASED ENTERPRISES
BASED ENTERPRISES withwith higher
higher upscale
upscalelivelihoods
livelihoodsinterventions
interventionsbyby
level market
level market linkages
linkages and
and developing
developingnetworks
networksand
andpartnerships
partnerships
enhanced support
enhanced support networks
networks and
and with
withnational,
national,regional,
regional,local
localpublic
publicand
and
services
services private
privateinstitutions.
institutions.

IMMEDIATE OBJECTIVE 3
Enhanced community OWNERSHIP of
interventions through PARTICIPATORY AND
CONSULTATIVE APPROACH
OPERATIONAL
&
STRATEGIC
INTERPRETATIONS
RURAL INCOMES +
VIBRANT COMMUNITIES
= LASTING PEACE
For Immediate Objective 1: For Immediate Objective 2:
DEVELOP COMMUNITY-BASED BUILD CAPACITY OF BDA ON
ENTERPISES ALONG LOCAL NEW & REFORMIST TOOLS AND
SUPPLY CHAINS DELIVERY SYSTEM

For Immediate Objective 3:

Ownership of system and methodology - BDA
Ownership of enterprise projects -
Communities
TARGET OUTPUTS

Randomized Project Sites Covered - 12 Barangays

Immediate Objective 1 – Capacity building of the BDA

 
Institutions developed/ created - 1 (Enterprise/ Economic Dev’t. Unit)
Staff trained, capacitated - 35 (BDA/PLEDGE Project Staff)
Other partners trained - 30 (BDA volunteers/ Dev’t Catalysts)
Tools and guidelines - 20 (implementing tools and guidelines)

Immediate Objective 2 – Creation of sustainable community-based enterprises

Group Enterprise Projects created - 36 (3/site forming local supply chains)

Common enterprise facilities established - 12 (1/site PO-owned, serving the site)
informal business operators enhanced - 120 (at least 10/ site contributing to LED)
Beneficiaries trained in entrepreneurship - 360 (30/site involved in the 30 enterprises)
Beneficiaries trained for wage employment - 60 (at least 5 per site to be sent to TESDA)
Beneficiaries engaged in new enterprises - 60% of the 360 trained on entrepreneurship
% increase in monthly income of trained - 50% average increase across the beneficiaries
LOCATION OF PILOT SITES
10 Sites for WB-IE approach
2 Sites for Full CDD
Bgy. Rantian, Piagapo
Approach
Bgy. Mamaanun Proper,
Piagapo
Dapitan City
Bgy. Nian, Dinas
Dipolog City
Iligan City
Bgy. Pisa-an. Dinas
Zamboanga del Lanao Norte
Norte Marawi City Bgy. Pigcalagan,
Zamboanga Sultan Kudarat
del Sur Pagadian Lanao Sur
City

Bgy. Seronggon, Cotabato City North Cotabato Bgy. Binanga

Mohammad Adjul North, Talayan
Kidapawan
City
Zamboanga City Maguindanao
Bgy Candiis, Davao City
Mohammad Adjul
Basilan Davao
Sultan Kudarat Sur
South Cotabato

General Santos City

Sulu Davao Oriental
Sarangani

Bgy. Koronadal Proper,

Bgy. Tomaong, Tarragona
Polomolok

Tawi-Tawi Bgy. Lucatan, Tarragona

Bgy. Datal Bob,
Tiboli
CONCEPTUAL FRAMEWORK
 Conceptual & Simple, less bureaucratic service
Development Contract or Direct Development
Assistance Agreement is made
Framework on directly between the BDA and
LED according the target groups, contract
provisions are discussed,
to PLEDGE respective and common
Enlightened Governance: responsibilities are
Practical publicly clarified
application of universal
values and principles such
as, but not limited to
vicegerency
transparency, accountability
and shared
responsibility
LED Area:
Agro-Aqua Ind’l Community-Based Municipality with Enterprise Economic
Development Enterprises & local Barangay or Financing (formal Support
(MSME-BLI) supply chains cluster or small & Informal) Infrastructures
Barangays as
entry point

Grassroots Empowerment:
Target Groups
plan, decide, propose,
Conduct of Jobs opportunities survey, implement, manage and
study & develop peripheral enterprise Target Groups collectively prepare
assume primary responsibility project proposals, sign contracts,
of anchor firms, study & train for programs, projects and
beneficiaries for wage employment in receive financial assistance,
activities procure training tools, supplies,
MSME-BL firms/ industries, conduct
training and provide business hire their Trainers or service
assistance & advisory to informal, providers, select their trainees,
unregulated small business operators implement and manage their
projects
THE PLEDGE METHODOLOGY
How the Project designs PLEDGE as a CDD Methodology

Participate and
4 Months compete in the
formal economy

Project Site: Barangay or 5 Months

cluster of small Barangays
in a Municipality

Join the Formal Sector

Application Assessment,
of PLEDGE Implementation
approval of
planning Project of training in Implementation Apply for
tools, Proposal skills and group of appropriate
process, & signing enterprise dev’t Transition Organize the government
preparation of Service Enterprise planned supply registration
Contract/DDA Project (TEP) chain or common
of Project
facility enterprise
Proposal
Remain small community-
based group or individual
enterprises

Enterprise Groups, POs and BDA

Enterprise Groups, POs and workBDA
on long-term
Identification /selection of Project Monitoring,
Monitoring,evaluation
evaluationofoftraining
training organizational work
andon long-term
business
site, LGU, partners & target group and
andTEP,
TEP,applied
appliedtraining
trainingin
in organizational
relationships,and business the
strengthening
mobilization, social preparation, values
valuestransformation,
transformation,gender
gender relationships, strengthening
forward and backward the of the
linkages
Project orientation issues
issuesenvironmental
environmentalsafeguards,
safeguards, forward andchain,
supply backward linkages
connect of the
with external
grievance
grievancemanagement
management supply chain, connect with external
markets, technology, micro finance, and
markets, technology,
business micro finance,
development and
services
How CDD Planning is IMPLEMENTATION STAGE
Adapted in PLEDGE What
What specific
specific Who
Whowill
will be
bethe
the (5 Months)
products
productsor orservices,
services, proponent
proponentof ofthe
the
(4 Months) will
willbe
bethe
thebusiness
business project,
project,gathering
gathering 1. Assessment, approval
of
ofthe
theenterprise.
enterprise. of
ofproponent
proponent of Project Proposals
What
Whatcancanbe
bethe
the PO
POprofile,
profile,IDIDofof
2. Preparation of Service
forward
forwardand
and trainers,
trainers,canvassing
canvassing
backward
backwardenterprise
enterprise of
ofprices
pricesofofproject
project
contract/ DDA, release
elements
elementsof ofthe
theCore
Core inputs,
inputs, computing
computing of funds (3 tranches)
Regular enterprise?
enterprise? project
projectcosts
costs 3. Selection of Trainees by
Group PO proponents
Enterprises 4. Procurement of tools,
Enterprise Project Project Proposal equipment, supplies
Designing Preparation 5. Implementation of
Community
Community approved and required
enterprise
enterprise Common
training program
planning:
planning: Facility 6. Applied values
Brainstorming
Brainstorming Enterprises Transformation Training,
of
of project
project ideas,
ideas, gender, environmental
validation,
validation, safeguards
prioritization,
prioritization, 7. Setting up Transition
segregation
segregation Enterprise or TEP ( for
CBE, CFE)
Placement/ Training 8. Monitoring & Evaluation
for Employment thru of training and transition
Identification
Identification Jobs Opportunities enterprise project or
/selection of
/selection of Survey TEP
Project site,
Project site, 9. Organizing the supply
preparation of
preparation of Training to establish chain or common facility
community Other enterprises or CFE,
community Peripheral Training
profile, target
target LED organizational
profile, Enterprises of
group related Proposal development, linking
group anchor firms/
mobilization, projects preparation with external markets,
mobilization, industries
Project
Project technology, micro
orientation finance, business
orientation
Training to enhance development services
the viability of 10. Government registration
Informal Business of enterprises
Operators
THE SERVICE DELIVERY SYSTEM
The Project Proje
Structure and Advis
ct Board of Directors
o
Comm ry
Service Delivery ittee 6
System in BDA Project Proposal is approved,
Service Contract/ DDA is
Executive Director discussed with proponents,
signed, funding assistance is
released according to provisions
PC C BDA CO Final
Assessment in the Contract thru the tranche
TWG 5 payment scheme
Committee
7 Selection of Trainees by
CMO Staff proponent PO/community
based on Project criteria/
guidelines
3
LGU/MTT
review the proposal, 4 8 Procurement of approved
Project
aligning with local Supervision, tools, equipment and training
Proposal goes
development plan, Regional Managers Monitoring, supplies in the project proposal
to RMOs, pre-
possible provision of
assessed, and Officers Technical & by PO-proponent, delivered/
technical-financial management installed in agreed training /
endorsed for
assistance audit project venue
approval

9 Conduct of skills training,

enterprise development,
2 applied VTT, Gender,
Project Proposals are
referred to the M/B LGU Environmental Safeguards,
through the Municipal organizational and business
development, implementation
Technical Team or MTT Target Groups and of TEP
(if there is
one) their Communities
10 End of training - Tools & equipment are turned over
to PO-proponent, post-training assistance provided;
1 CEDOs or trained/ authorized community organizational and business relationships supply chain
development workers facilitate community or common facility enterprise created, linking with
planning and assist in the preparation of external markets, technology, micro finance, business
Project Proposals development services
 COMMUNITY-BASED ENTERPRISE AND
SUPPLY CHAIN DEVELOPMENT STRATEGY
 How ENTERPRISE and SUPPLY CHAIN is Developed and Organized
Ex. Pilot projects: Banana Products Processing, Garments and Home Decors,
Food Processing and Catering

Raw Materials Supply Distribution/Marketing

Processing/
ENTERPRISE ENTRPRISE
(Downstream/ Backward
Making/Manufacturing
Linkage) ENTERPRISE (Upstream/Forward
Linkage)

Training Points: Training Points: Training Points:

• Kinds/requirements • Production processes • Product packaging
• Sources/accessibility • Designs and specifications • Trade mark, branding
• Quality/adaptability • Products diversification • Promotion, advertising
• Quantity/volume • Quality control, safety etc. • Distribution, placement
• Transport • Materials & stock mgt. • Point of sale, selling
• Acquisition and • Gate pricing formula/ • Selling price formula/
selling price forecasting forecasting

Organizing and managing the enterprise elements/ groups;

• Basic Officers: Managers, Treasurers/Cashiers, Auditors, Bookkeepers
• Business Operation – Savings generation/ profit utilization, Investing savings, capital sourcing,
return of capital, payback period
• TEP monitoring and evaluation - business operation, expansion, potential issues and problems
for sustainability
 How COMMON FACILITY ENTERPRISE is Developed and Organized
Ex. Pilot Project: Rice and Corn Production - Land Preparation Equipment
Services

Farm Implement
Rental and Land Member Farmers/
Preparation Service Other Farmers

Training points: Organizing and managing the enterprise

1. Basic Officers: Managers, Treasurers/Cashiers, Auditors, Bookkeepers

2. Business Operation – Rental of equipment, land preparation services, savings generation/ profit
utilization, Investing savings, additional capital sourcing, return of capital/ payback period,
Transition Enterprise Project monitoring and evaluation - business operation, expansion, potential
issues and problems for sustainability
ORGANIZATIONAL Post-trainingorganizational
Post-training organizationaland andbusiness
businessrelationships:
relationships:
1. The
1. TheMPO
MPOwill
willretain
retainownership
ownershipof ofBDA-provided
BDA-providedtools tools
RELATIONSHIPS BETWEEN andequipment
and equipmentand andother
otherassets
assetsacquired
acquiredfromfromPLEDGE
PLEDGE
MOTHER PO/PROPONENTS 2. The
2. TheMPO
MPOwill
willtake
managementaudit
takecharge
chargeof
auditof
ofthe
ofthe
theoverall
overallsupervision
theenterprise
enterprisegroups
supervisionand
groups
and
management
AND ENTERPRISE GROUPS 3. Both
3. Boththe
theMPO
MPOand andthe
theenterprise
enterprisegroups
groupswillwillcontinue
continue
workingon
working onexpansion
expansionandandsustainability
sustainabilityandandlinking
linkingwith
with
formalmarkets,
formal markets,technologies
technologiesincluding
includingappropriate
appropriate
MOTHER PEOPLE’S financingprograms
programs
financing
ORGANIZATION 4. Both
4. Bothparties
partieswill
willdevelop
developprofit
profitand
andloss
losssharing
sharingpolicies
policies
(Single PO or Federation of includingmechanisms
including mechanismsfor forgrievance
grievanceredress,
redress,
Several POs) environmentalsafeguards,
environmental safeguards,gender
genderissues
issuesand
andvalues
values
transformation
transformation

Powers & responsibilities of POs

1. Implement training based on contract
2. Accept BDA-provided tools, equipment
3. Assist BDA, partners in monitoring
4. After the training period work with
BDA in establishing long-term
organizational and business
relationships with each enterprise
group including product and business
registration
5. Help strengthen the supply chain
economic environment
Responsibilities of Enterprise Groups
1. Undergo the training program
2. Organize their enterprise, select officers
3. Work with the mother PO and BDA in
establishing post-training organizational
and business relationships
4. Build its own capital base for expansion
and sustainability
5. Help strengthen the supply chain
economic environment

Group Group Group

Enterprise Enterprise Enterprise
(RM supply/ (processing/ (distribution/
production) manufacturing) marketing
CAPACITY BUILDING PROGRAM
 STRATEGIC PRINCIPLES ON DEVELOPMENT AND
CAPACITY BUILDING

LED Program LED Program to

intervention AND TO MAKE THIS WORK: be effective must
alone is not we must develop Tools, be accompanied
enough to Systems, Guidelines and by simple,
Strategies for implementation practical, less
improve
and management and build the
people’s lives bureaucratic,
capacity of implementing
or develop their agencies to use them
and user-friendly
communities delivery system
CAPACITY BUILDING METHODOLOGY:
PARTICIPATORY ACTION RESEARCH
AND DEVELOPMENT

Tools, Methodology &

Systems Drafting

Continuous
Improvement

Institutionalization, Consultation
Project Utilization Project Staff Workshops
(CMO, RMs, CEDOs,
BOD)
Partners
(LGU-MTT,
BLGU, Service Providers)
Target Groups
(POs, CBOs)
Re-application, Pilot Testing-
Final utilization Field Validation

Reflection:
Changes,
improvement,
Adaptation
Planning Stage
Steps Group of Activities Tools No of
Days
1 Local partners mobilization (LGU, BGU, 1. How to prepare project site profile 14
POLCOM, PO) courtesy calls, orientation and 2. How to prepare PO profile
MTT re-activation, target group mobilization 

2 Community enterprise planning, project 1. How to facilitate CDD community-based enterprise 4

designing, project validation planning
2. How to facilitate enterprise planning for WB-IE
3. How to conduct training and development analysis for
community-based enterprise

3 PO organization and government registration/ 1. Memorandum of Agreement between and among POs 18
renewal 
4 Project proposal Preparation, service 1. Type A- Project Proposal to establish community- 45
provider/ trainers selection, preparation, based enterprise or CBE
canvassing of training inputs  2. Type B- Project Proposal to establish common facility
enterprise or CFE
5 Project Proposal Presentation to BDA RMO, 1. Assessment guide for project proposals 7
MTT, partners 
6 Assessment, approval of project proposal and 1. Service Contract for Type A projects (CBE) 31
signing of service contract 2. Service Contract for Type B projects (CFE)
3. Direct Development Assistance Agreement for Type A
projects (CBE)
4. Direct Development Assistance Agreement for Type B
projects (CFE)

  13 Tools developed, being utilized 122

(4
Mos.)

Other CBED-LED Planning Tools Developed 

How to conduct Jobs Opportunities Study (pilot tested, placement on-going)
How to conduct study peripheral enterprises of anchor firms and industries (not yet piloted)
How to conduct study to enhance viability of informal business operators (not yet piloted)
Implementation Stage
Steps Group of Activities Tools No of Days

1 Submission/ processing and release of request for the 1st 1. Request for Tranche Payments  
Tranche of financial assistance/contract price, cheque 2. Certificate of inspection of training/ enterprise venue
clearing 3. List of recommended trainees 30

2 Appointment of Skills Trainer, preparation of training 1. Letter of Appointment of Trainers 21

materials, procurement of training inputs delivery,
preparation of training venue, inspection of procured
items 
3 Liquidation of 1st tranche of payment, request for 2nd
tranche, processing and approval, release of check,
clearing
4 Implementation of approved skills training program
2. How to prepare skills training outline and syllabus
 
1. Certificate of Inspection of purchased tools, 21
equipment and training supplies
(Other required procurement documents for liquidation
is part of the financial support management)
1. How to apply basic training techniques 21

5 Enterprise development training, supply chain 1. A-TEP for manufacturing/ processing enterprise 45
development, implementation of transition enterprise B-TEP for Marketing enterprise
project, training in values transformation, C-TEP for Service enterprise
environmental safeguards, grievance management  
gender issues, organizational development  2. Business records

6 Liquidation of 2nd tranche, submission of final reports, 1. Training Application forms 14

processing and release of 3rd Tranche of financial 2. Enrolment report
assistance/contract price, end of contract  3. Graduation report
4. End of Training Report
5. Budget balance utilization plan
7 Monitoring and Evaluation 1. Monitoring evaluation data gathering system forms  
2. How to conduct TEP evaluation and provide small
business advisory 

  16 Tools developed 152
(5
Mos.)
THANK YOU
SHUKRAN