MEMORANDUM OF AGREEMENT (MOA)

BETWEEN THE
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
AND THE MUNICIPALITY OF CAWAYAN, PROVINCE OF MASBATE
KNOW ALL MEN BY THIS PRESENTS:
This agreement made and executed this _______ day of
________________________________, Philippines, by and between:

_____________,

2015

at

The DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT, a national government

agency represented herein by its OIC-Regional Director, ELOUISA T. PASTOR, CESO IV, Region V
with office address at DILG Regional Office V, Rizal St., Albay District, Legazpi City, hereinafter
referred to as the DILG;
and
The MUNICIPAL GOVERNMENT OF CAWAYAN, PROVINCE OF MASBATE a local government unit
(LGU) in the Province of Masbate, Region V, duly established under the laws of the Republic of the
Philippines, with address at the Municipal Building, Cawayan, Masbate, herein represented by its
Municipal Mayor, EDGAR S. CONDOR, hereinafter referred to as the LGU.
- WITNESSETH WHEREAS, one of the key results of the Presidents Social Contract as embodied in the Philippine
Development Plan (PDP) for 2011 to 2016 is to attain a comprehensive, just and lasting peace and
the rule of law;
WHEREAS, Government has adopted a dual strategy to attain a just and lasting peace of undertaking
political settlements of the conflict and a complementary track called PAMANA Program aimed at
addressing the root causes of conflict and issues that affect the peace processes and narrow the gap
between negotiating table and the ground;
WHEREAS, the PAyapa at MAsaganang PamayaNAn (PAMANA) Program is envisioned to provide
the framework for intervention in conflict-affected and vulnerable areas to complement the
governments peace negotiation efforts;
WHEREAS, PAMANA is the convergence framework through which national government, the local
government units and development agencies provide targeted interventions in identified conflictaffected areas (CAAs) focused on responsible governance; improved delivery of basic services;
sustainable development and economic reconstruction; and security sector reforms by ensuring
delivery of basic services, implementation of transparent and accountable mechanisms and capacity
building of communities while ensuring that income generating activities and economic development
are supported and employment opportunities provided;
WHEREAS, the PAMANA Program aims to (i) reduce poverty and vulnerability in conflict-affected
areas; (ii) improve governance; (iii) empower communities and strengthen their capacities to address
issues of conflict and peace through activities that promote social cohesion;
WHEREAS, the PAMANA Framework is anchored on three complementary strategic pillars that define
core interventions to achieve lasting peace. These are:

Pillar 1
- refers to interventions that support the establishment of the foundations of
peace and the building of resilient communities through policy reform and development

Pillar 2 - refers to micro-level interventions to promote the convergent delivery of services and
goods focused on households and communities by both national and local agencies/units

Pillar 3 - refers to meso-level interventions that address regional and sub-regional

development challenges and will contribute to peace building
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WHEREAS, the Department of the Interior and Local Government (DILG) has been designated as the
lead agency responsible in executing and administering the Pillar 3, in partnership with the Office of
the Presidential Adviser on the Peace Process (OPAPP);
WHEREAS, to enable the realization of Pillar 3 interventions, the National Government has allocated
under the FY 2015 General Appropriations Act, the PAMANA-DILG Fund which shall be provided to
eligible LGUs in the form of fund subsidy under the PAMANA-DILG Fund.
WHEREAS, Local Government Units (LGUs), as provided under the Local Government Code of 1991
or Republic Act No. 7160, assume the primary responsibility for the provision of basic services and
facilities and the improvement of quality of life of their constituents;
WHEREAS, the LGUs are recognized by the OPAPP to have a significant role in peace-building and
conflict transformation due to their strategic advantage in the community having direct knowledge of
community issues and concerns and both entities are committed towards the achievement of the
PAMANA Program;
WHEREAS, both the DILG and the Municipal Government of Cawayan, Province of Masbate are
committed to the principles of transparency and accountability and to engage the general public,
through civil society organization (CSOs), in the attainment of good governance, through the proper
implementation of government programs, activities and projects, and the timely delivery of services to
the Filipino people;
NOW, THEREFORE, for and in consideration of the above premises and of the mutual covenants
stipulated hereinafter set forth, the PARTIES hereto agree into this Memorandum of Agreement to
adhere to the following terms and conditions;
SECTION I. GENERAL PROVISIONS
a) This Memorandum of Agreement (MOA) shall cover PAMANA-DILG Fund projects in support
of the peace processes, amounting to Fifty Million pesos (PhP50,000,000.00) herein refer to
as the PROJECT(S):
b)
Project Title
Concreting of Mactan - Malbug Road
TOTAL

Amount
50,000,000.00
50,000,000.00

c) All applicable provisions of the Guidelines in the Management of the PAMANA-DILG Fund,
attached herein as ANNEX A, is made an integral part of this MOA; and
d) Variation of the project design during the course of implementation should first seek the review
and conformity of the DILG and should only be limited to the total project cost. Any variation
order resulting to an increase in the total project cost shall be borne by the LGU.
SECTION II. RESPONSIBILITIES OF THE PARTNERS
The DILG through the Regional Office shall:
a) Conduct assessment and validation of internal housekeeping of the LGUs;
b) Facilitate application and compliance of eligible LGUs;
c) Provide capacity-building interventions to LGUs;
d) Provide Project Development assistance to LGUs;
e) Provide technical support to the TWG/Secretariat of RPOC/PPOC in the review and evaluation
of proposals;
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f)

Within ten (10) days after the signing of MOA, the concerned DILG Regional Office shall issue
a Certificate of Availability of Funds (CAF) to the LGU for the corresponding amount of the
approved PAMANA subsidy, subject to the submission of the stipulated documents in the
Guidelines in the Management of the PAyapa at MAsaganangPamayaNAn or PAMANA-DILG
Fund.
g) Monitor and evaluate the PAMANA-DILG funded projects of LGUs in close coordination with
the OPAPP-PAMANA Area Managers and the Regional/Provincial Council;
h) Submit monthly reports to the DILG PAMANA National Project Management Team copy
furnished PPOC and the RPOC;
i)

Facilitate the resolution of implementation issues that are not resolved at the local level; and

j)

Release the funds to the Municipal Government, subject to the availability of Cash Allocation,
based on the tranches and requirements set in Section III of this MOA.

The Municipal Government of Cawayan, Masbate shall:

a) Endeavor to accomplish all requirements relative to the achievement of the Seal on Good
Housekeeping and Full Disclosure, within the period of implementation and completion of LGU
projects;
b) Prepare Project Proposal/s and other required documents under Section III.B.2 of the
Guidelines in the Management of the PAyapa at MAsaganang PamayaNAn or PAMANA-DILG
Fund, based on the identified priorities as a result of the Provincial/Regional conflict-sensitive
investment plans;
c) Designate appropriate focal person/appropriate focal unit/department in the LGU which shall
manage and coordinate the implementation of PAMANA projects in the area to ensure the
integration, coordination, facilitation and supervision of all activities/outputs;
d) Engage the services of civil society organizations (CSOs) as third party monitors;
e) Implement projects by contract through competitive bidding, adhering to the provisions of RA
9184 and its Implementing Rules and Regulations (IRR), as revised;
f)

Enact local ordinances providing LGU equity, if needed, for the implementation of proposed
PAMANA projects and the sustainability of their operations and maintenance;

g) Oversee the physical implementation of their respective projects to ensure that it is in

accordance with the provisions stipulated in the MOA;
h) Open a Special Account in a government bank to facilitate the transfer of funds and provide
the DILG Regional Office a certification from the Local Treasurer and details of the account;
i)

Maintain a Book of Accounts for the PAMANA-DILG Fund and set up sound financial controls
based on government accounting rules and regulations;

j)

Issue an official receipt corresponding to the amount of the PAMANA-DILG Fund subsidy
received;

k) Ensure the preparation and implementation of any resettlement plans (as appropriate) for the
affected families and ensure timely acquisition of right of ways required for the project;
l) Implement cost recovery program for economic enterprises;
m) Be responsible for the settlement of the right-of-way whenever applicable;
n) Put up project billboard/s indicating the project title and status of fund utilization in compliance
with the PAMANA transparency and accountability guidelines;
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o) Develop, adopt and implement systems and procedures necessary to sustain the life of the
project or facility;
p) Submit monthly physical accomplishment and financial reports to the Regional PAMANA-DILG
Project Management Team;
q) Maintain and operate properly the project/facility/enterprise in accordance with sound
administrative, financial, engineering and environmental practices;
r) Make available to DILG and its authorized auditors, at all times, all financial records and
information required for auditing and liquidation purposes;
s) Responsible for the liquidation reports of PAMANA-DILG Fund transferred to the LGU;
t)

Return the unexpended balance of the released portion of the funds or the pertinent portion
related to the cancelled component, whenever applicable;

u) Refund/Return to DILG the full amount released to the project, including accrued interest
earnings, in case of:
1. Misappropriation of fund without prejudice to the filling of administrative and/or
criminal charges as the circumstances warrant;
2. Non-utilization of fund within three (3) months from the date of receipt;
3. Non-compliance of any provision stated in this Agreement.
v) Shall ensure that all activities relative to the procurement and performance of any contract is
consistent with the applicable provisions of RA 9184 and laws on corruption and fraudulent
practices; and
w) Shall resolve all issues relative to any contract within the period of implementation of LGU
projects.
SECTION III. RELEASE OF FUND
Conditions for the release of funds:
Tranche
1st

PAMANA-DILG FUND

Requirements
Upon
Accomplishment/Submission
of
the
80% of the Project Design following:
Cost
1. Request Letter from the LGU/Responsible
Partner
2. Certified Copy of the Sanggunian Resolution
Authorizing the Mayor to sign the MOA
3. Signed MOA between DILG and LGU
4. Certified copy of EO on the designation of the
Focal Person
5. Certification on the Opening of Special
Account
6. Certification of the availability of LGU equity in
the form of cash or services
(if required)
7. Approved Program of Works, Detailed
Engineering
Plans
and
Technical
Specifications (for Infrastructure Projects) and
other technical drawings.
8. Environmental Compliance Certificate (where
applicable)
9. Applicable Legal instruments/s allowing use of
the land or property for the project (where
applicable)

2nd
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20% of the Project Design

Cost (approved cost)

Upon
Accomplishment/Submission
of
the
following:
1. Request Letter from the LGU/Responsible
Partner
2. Certified true copy of BAC Resolution
Recommending Award of Contract
3. Certified true copy of the approved Contract of
Agreement
4. Certified true copy of the Notice to
Proceed/Commence from LGU to the
contractor
5. Copies of other bidding documents as may be
required
6. Statement of Receipts and Disbursement
(SORD)/Statement of Expenditure (SOE) duly
signed by the Treasurer/Accountant and the
Auditor attesting that the initial 80% released
has been disbursed
7. Project Status Report by the LGU, with
Statement of Work Accomplished, showing
100% physical accomplishment, duly signed
by appropriate LGU staff and approved by LCE
and verified by the CSO partners
8. Certificate of Completion/Turn-over and
Acceptance
9. Audit Inspection Report of the Technical
Services Division of COA
10. Operations and Sustainability Plan

SECTION IV. TERMINATION OR SUSPENSION

This Memorandum of Agreement (MOA) shall be implemented in accordance with the terms and
conditions herein stipulated. This MOA may be terminated by either DILG or the LGU, by giving fifteen
(15) days written notice to the other party. After which, the LGU shall promptly return any unutilized
funds to the DILG, not later than the 15 th day from receipt of such notice by either party. Further, the
DILG, reserves the right to apply and implement any of the following options:

Terminate/cancel the implementation of the project in the following instances:

LGU non-compliance to prescribed project proposals, standards and requirements
Corruption and fraudulent practices
When situations/circumstances would make it improbable for the Project to continue to
be carried out
Upon request of the LGU

Suspend/withhold the release of the final tranche if any of the following occurs:
The Regional PAMANA-DILG Project Management Team, during the conduct of review
and monitoring activities determines that: (i) the procurement of any contract is
inconsistent with RA 9184 provisions
(ii) LGU is performing unsatisfactorily in the
implementation and execution of the project or in the event that substantial slippage in
implementation is incurred
Extraordinary conditions such as force majeure, fortuitous events and the like which
shall make it necessary to suspend the implementation of the Project

SECTION V. EFFECTIVITY
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This Agreement shall take effect immediately upon approval and signing by the contracting parties
and shall remain in force and effect until the completion of all projects and the requirements stipulated
under this MOA and the accompanying Guidelines in the Management of the PAMANA-DILG Fund,
unless sooner terminated.
IN WITNESS WHEREOF, the parties hereto have hereunto affixed their respective signatures on the
date and place first above-written.
For the Department of the Interior
and Local Government (DILG)
ELOUISA T. PASTOR, CESO IV
Regional Director, Region V

For the Municipality of Cawayan,

Masbate
HON. EDGAR S. CONDOR
Municipal Mayor
WITNESSES

______________________________

______________________________

______________________________

______________________________

AKCNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
____________________________) S.S.
BEFORE ME, a Notary Public for ______________________, on this _____ day of
_____________________ 2015, personally appeared the following persons, to wit:

Name

Passport No./Employee ID
No./CTC No.

Date/Place of Issue

ELOUISA T. PASTOR, CESO IV

HON. EDGAR S. CONDOR

01101

Cawayan, Masbate

known to me and to me known to be the same persons who executed the foregoing Agreement,
consisting of eight (8) pages including this on which this acknowledgement is written, and who
acknowledged that the same is their own free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and place above- written.
Doc. No. ____________;
Page No.____________;
Book No.____________;
Series of 2015.

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