PROPOSAL ON BARANGAY LIVELIHOOD CENTER
(Sentrong Pangkabuhayan sa Barangay)
Unemployment is one of the major concerns of local government units. Over the years, the fast rising increased in population have created poverty everywhere most especially in the depressed area. Non Government Organization, Peoples Organization, through the help of financial institutions and expert in sustainable development often tried to initiate livelihood projects and programs but only small percentage succeeded. Mostly, the cause of failure of projects and programs was the marketing aspect. They taught how to do and produce but they disregarded the concept of
how and where to sell the produced products.
Various government units, agencies, civic and business organizations have continued initiated steps to solve the ever-growing problems of accumulation. However, they can do only so much in solving the problem due to their own limitations and the people who only take advantage of what they can get simply but not for long term gain.
With the new program of the City Government of Malolos or upon implementation of Barangay Livelihood Center, instead of operating as suppliers to the public of particular goods and services they requested, the government will do the function as facilitator and coordinator. The initiated livelihood programs/projects will be funded by capitalists who equally share with the role of other lead agencies to begin with group organizing, training, funding, marketing and management.
C. CONCEPTUAL FRAMEWORK
The Barangay Livelihood Center is an innovative scheme for partnership to promote community participation and empowerment. A participatory approach of the formed group or organization to the barangay government to city level to capitalist, with their complementary nature of services, shall serve as the main mechanism of this effort. To become beneficiaries, the unemployed residents of the barangay shall form a group of not less than 20 members. This group will be called as “ENTREPRENEURS”. The members of the group shall be encouraged to adopt the spirit of entrepreneurship values.
THE BARANGAY GOVERNMENT
The barangay government headed by the Punong Barangay shall select and evaluate the members of entrepreneurs. Through evaluation and in coordination with the entrepreneurs, the PB or his/her duly authorized representative shall determine the type of livelihood program or project to be implemented. The PB shall be the Program Director/Manager and his/her office will be the temporary “coordinating center” of the program/project.
THE CITY GOVERNMENT OF MALOLOS
The city level or the City Government shall be the facilitator and coordinator of the program. The city government will provide all the technical support which includes stages of planning, organizing, trainings, introductory implementation and management, and assistance in marketing. (SCHEME B. AS GUARANTOR IF THE BARANGAY DID NOT MEET THE REQUIREMENTS. UPON APPROVAL OF THE CITY MAYOR)
THE CAPITALIST (DBP)
The capitalist or source of fund shall provide the funds needed by the program beneficiaries (barangay). It shall establish the policy of granting the programs and projects to be funded, the mode of payment or payment scheme. It shall also establish the central marketing together with the city government of all the products produced by the livelihood centers.
There shall be a continuous public information services and regular visitation on the centers and regular community education in entrepreneurship and sustainable development by the appropriate government offices serve as lead agencies of the program.
Essential to this plan are: appropriate support and access to technology and information; supportive partnership policies and government leadership; and supplementary research and development activities.
D. IMPLEMENTATION SCHEME
The success of Barangay Livelihood Center will; depend on strong partnership, large extent of necessary support , assistance and coordination of lead agencies and beneficiaries especially during the initial phase of implementation.
The supports may come in the form of appropriate policies, Executive Order from local executive, Memorandum of Agreement by and between agencies involved in the program including the beneficiaries, community active and serious participation and initiative. Business sector and NGO assistance will also be necessary in the provision of support through technical expertise, research and development activities to continuously improve the technologies and processes for the efficient implementation of the program.
E. ORGANIZATION AND MANAGEMENT
The formed group/organization in selected barangays together with the barangay government will manage the Barangay Livelihood Center. It shall be maintained and capitalized by the members elected Project/Program Manager and Board of Director who will be in charge in registering and applying the organization with Securities and Exchange Commission, DTI and to LGU concern for permit application. The elected officers will manage all the affair of the center in a business like manner in accordance with their member’s common purpose of keeping their business in continuous successes.
The Board of Directors shall promulgate policies and regulations of the center. The Board will appoint other officers to be responsible for the different roles and functions in the operation and maintenance for the daily operation of the business.
The capitalist or agency who provides the funding of the center with the approval of local chief executive shall determine the required amount needed for the operation of livelihood program. The criteria will be base on the recommendation of agency concern upon assessment and prepared plan for the center’s operation. Maximum of P400,000.00 will be provided by the capitalist/financier to every center and it will be granted upon submission of necessary documents required for loan application or depends on the eligibility of borrowers. (payment scheme and mode of payment shall be scheduled based on the cash flow and projected recovery of investment):
|1) Lending Facility/Purpose||Term Loan/LGU Re-lending scheme to MSMEs|
|2) Creditor||Barangays of Malolos|
|3) Loanable Amount||Based on 20% debt services ceiling of the LGU/ Barangay (OR BASE ON THE CAP TO BE PRO- VIDED BY CGM)|
|4) Tenor||Based on the cash flow. Up to maximum of Five (5) years (PROPOSAL)|
|6) Major Documents||a) Sangguniang Barangay Resolution authorizing the Brgy. Chairman to negotiate and sign document on behalf of LGU and BLC project approval;
b) Statement of IRA (3 years) duly certified by the Treasurer;
c) COA-audited Financial Statement for the last 3 years and latest available Interim Financial State- ment;
d) Socio-economic profile of the LGU;
e) BLC project proposal;
Certification from the Bureau of Local Gov’t Finance, Department of Finance (DOF-BLGF) on The LGUs debt services ceiling for the current yr.
|7) Conditions||Transfer/assignment of IRA in favor of the bank.|
NOTE: 3 years Tentative Amortization Schedule (attached) up to P500,000.00
G. PILOT BARANGAYS
Pilot barangays shall be selected base on population with the highest percentage of unemployed and highest number of Out-of-School Youth (OSY).
H. COMPOSITION, FUNCTIONS AND RESPONSIBILITIES OF LEAD AGENCIES
The Barangay and the Entrepreneurs
The City Government of Malolos (City Mayor’s Office, City Administrator’s Office, CSWDO and MTEC
The Capitalist (Development Bank of the Philippines)
The Barangay Livelihood Center is a democratic organization, established to operate and maintain to serve as solution to the community’s economic and social need or problem. The success of the center depends on the active and serious participation of all stakeholders especially the beneficiaries and members in the management and through the quality of products produced, continuous patronage will be a big factor.
I. QUALIFICATION OF APPLICANTS (As BLC entrepreneur)
J. GROUP REQUIREMENTS/MAJOR DOCUMENTS (Letter F, No. 6)
K. SCHEME B (NON-BARANGAY SUPPORT PROJECT)
RETAIL LENDING FOR MICRO AND SMALL ENTERPRISES
For information and approval.
ARIEL B. SANTIAGO
Revised and recommended by:
ATTY. RIZALDY L. MENDOZA
HON. ATTY. CHRISTIAN D. NATIVIDAD