CIRCULAR NO. 02
Series of 1997
Subject: Prescribing the Guidelines Governing the Imlpementation
and Management of Foreign-Assisted Projects (FAPs)
These guidelines are hereby issued in the view
of the neew to synchronize the activities and promote better coordination
and efficient management in the planning, implementation, monitoring
and evaluation of Foreign-Assisted Projects under the Department of
Agrarian Reform. It shall approriately delineate and distinguish the
roles and functions among the offices and units of the department
in relation to these projects.
The guidelines complement Special Order No. 886, series of 1996 which
provides for the creation of an Executive Committee for all Foreign-Assisted
Projects and chaired by the Assistant Secretary for Support Services.
II. GENERAL POLICIES
2.1 Foreign-Assisted Projects (FAPs)
shall mean all projects funded under Official Development Assistance
(ODA) whether through loans or grants, capital projects or technical
assistance which are being imlemented or proposed for implementation
All FAPs of DAR shall be part and parcel of the overall program
of the Department and shall therefore be coosistent with its goals,
objectives and policies and should complement its existing programs.
2.2 All FAPs shall be considered Special Projects of DAR. Hence,
the Department shall assure compliance with its commitments and
responsibilities to the project as provided for in the loan or grant
The Department is responsible and accountable for the effetive and
efficient implementation of all FAPs. It shall establish appropriate
structure and mechanisms to oversee their implementation. For this
pupose, DAR shall establish distinct Project Management Offices
and/or designate an implementing unit within the Department to take
charge these projects.
III. ROLES AND FUNCTIONS
3.1 Office of the Assistant Secretary for
3.1.1 The Office shall assure that all
FAPs are mainstreamed and are consistent with DAR's goals, objectives,
policy framework and program priorities.
3.1.2 With the increasing number of Foreign-Assisted
Projects, the Office shall assure that duplication o investment
and overlapping of activities shall not occur.
3.1.3 The Office shall be responsible for the proper integratio
of FAPs ithin the Department and assure effective coordination
and complementation of resources and technical expertise among
the different concerned units in project implementation.
3.1.4 The Office shall authorize
the conduct of all regular workshops, conferences and call regular
coordination meetings to address the concerns of FAPs.
3.1.5 The Office shall be furnished with regular consolidated
accomplishement reports of all FAPs prepared by PDMS. Likewise,
it may require PMOs to submit special reports on a "need
3.2 Project Development and Management
3.2.1 PDMS shall be responsible
for the conceptualization, development and management of DAR LTI
and PBD projects, both locally and foreign-funded.
It shall also act as the clearing house of all proposed pipeline
and on-going foreign-assisted projects. All project proposals,
prepared by other DAR units for foreign-funding, requests for
budget cover, laon proceeds, and counterpart funding of the Government
of the Philippines shall pass through the PDMS for programming
and official endorsement to NEDA, DBM, PARC and Donor agencies/foreign-funding
3.2.2 PDMS in coordination with FIMAS
and the Budget Division, shall responsible for the programming
of GOP counterpart funds for the FAPs. It shall consolidate all
requests for such funds, and submit the same to the PARC Secretariat
or to FMAO inclusion in the next budget year.
3.2.3 PDMS shall oversee the monitoring and evaluation of all
FAPs, Monitoring reports shall be submitted to the PDMS by all
PMOs and DAR implementing units in accordance with the Monitoring,
Evaluation and Reporting System for FAPs. it shall likewise prepare
regular consolidated reports for the Office of the Assistant Secretary
3.2.4 PDMS shall provide support to all
PMOs and/or DAR implementing units. It shall specifically:
Formulate and establish
systems, procedures and guidelines for monitoring and evaluation
of the physical and financial status and accomlishments
of all FAPs.
Serve as member and
coordinator of the Technical Committee of the Steering Commitees
of all FAPs.
Ensure the prompt
preparation, collection and consolidation of reports from
the PMOs for submission to NEDA, DBM and concerned donor
Assist the PMO in
coordinating and liasoning with the different DAR units
and other agencies on matters pertaining to the project.
3.2.5 PDMS shall assign at least one
(1) Desk Officer for each project to perform the abovementioned
The Regional SSD and the Provincial BDCD
shall be the counterpart field office of the PDMS. They shall
be responsible for the monitoring and evaluation of FAPs at
their respective level.
3.2.6 The PDMS Director shall sit as
member of the Executive Committee for all FAPs, which is chaired
by the Assistant Secretary for Support Services. PDMS Desk Officers
concerned shall provide technical support to the Executive Committee.
3.3 Bureau of Agrarian Reform Beneficiaries
3.3.1 BARBD shall oversee and ensure
that the development of the ARC project sites are in accordance
with the ARC Strategic Development Framework.
3.3.2 BARBD shall provide guidance and
technical assistance on the SIBS and Enterprise Development
components of the ARCs which are selected and prioritized as
3.3.3 Using the established systems and
procedures, BARBD shall be responsible in ensuring the conduct
of the following work for all selected ARC project sites:
- ARC profiling
- Baseline Survey
- ARB Monitoring
- ARC Monitoring
- ARC Impact Monitoring
- Assessment of development levels of
BARBD shall assist the Regional Support Service Division,
Provincial BDCD and the Development Facilitators in the
conduct of the abovementioned works.
3.3.4 For project involving the pilot
implementation of models or methodologies and systems, the PMO
may directly undertake the abovementioned work but in close
coordination with BARBD.
3.3.5 The BARBD Director shall serve
as member of the Executive Committee for all FAPs and may be
designated as member of the Technical Working Committee of a
concerned FAP, as the case may be.
3.4 Steering Committee
Steering Committee (SC) or equivalent body
shall mean the highest policy and decision-making body for each
3.4.1 Each FAP shall have its own Steering
Committee (SC) or equivalent body to oversee the overall progress
and implementation of the project. It shall address and act
on all policy issues and decide on matters affecting project
3.4.2 SCs shall have the following major
126.96.36.199 Review and approve
the Project's Global and Annual Work and Financial Plans.
188.8.131.52 Issue policies on project prioritization, working arrangements
and act on problems and issues affecting project implementation.
184.108.40.206 Periodically review the overall project performance.
3.4.3 SCs shall be chaired by the DAR
Secretary or his designated representative. Members shall be
composed of officials from DAR units concerned or directly involved
with the project, such as the following:
|Support to Ins. Devt.
Representatives from other line agency
(if project is interagency), PMO, and Donor agency shall also
sit as members of the Committee. All SC members shall have voting
rights except the donor agency, who shall act as non-voting
The SC shall have a Technical Committee
(TechCom) whose function is to review the proposals of the PMO
and recommend same for approval of the SC. The TechCom shall work
to facilitate the resolution of major issues and problems and
provide necessary suport to the PMO. It shall be composed of the
concerned Regional Director, Provincial Agrarian Reform Officers
(PAROs), and Directors and/or key staff of DARCO units and Bureaus.
3.4.4 The PMO shall act as the secretariat
of the SC.
3.5 Project Management Office
The Project Management Office (PMO) shall
refer to the specific office responsible for the actual implementation
and day-to-day management of FAPs.
3.5.1 DAR shall create aPMO for each
large-scale project, which may cover several regions or provinces.
It shall be separate and distinct from regular units of DAR
whose primary function is to ensure smooth project implementation.
3.5.2 For technical assistance projects
and other project types which could be handled by existing units
within the structure of DAR, the Secretary upon the recommendation
of the ASEC for SSO, shall designate the implementing unit and
Project Manager from among the existing qualified staff. The PMO
for the specific project shall thus be based in said unit. i.e
BLD, MIS, etc.
3.5.3 DARCO units, whose mandate is to
support the FAPs, shall provide technical assistance to the
PMO. A mechanism shal be established for this purpose.
3.5.4 For projects which cover a specific
region, the PMO shall be stationed and based in that specific
region for existency of implementation. For projects covering
several regions and provinces, the PMO shall be used in Manila
or in another area of central location.
3.4.5 The PMO shall be headed by a Project
Manager, to be designated by the DAR Secretary in accordance with
the qualification standards set for the project or unless otherwise
provided for in the official agreement with he donor government.
The Project Manager shall be assisted by a pool of technical specialists
and an administrative support staff as deemed appropriate and
3.5.6 The PMOs shall be responsible and
accountabe to the SC for the targets and outputs of the project.
It shall be responsible for the day-to-day management of project
imlementation. Specifically, it shall have the following functions:
Prepare the global
and annual workplans, targets and budget of the project.
Formulate and establish
systems, procedures and guidelines for the implementation
of the project.
Implement the project
plans with utmost efficiency, to achieve goals and targets
Ensure that the project's
plans and activities are synchronized and consisitent with
DAR's programs and projects.
Ensure that the funds
and other resources of the project are properly anaged and
Prepare and submit
periodic physical and financial monitoring reports to DAR
as provided for in the FAPs Monitoring System, and other
special reports s may be required.
The PMO shall act
as the Secretariat of the SC. It shall prepare and present
to the SC during regular eetings the following documents:
- Accomplishments and Status of
the Projects of date
- Issues/problems,proposed and
alternative solutions and recommendations
- Future activities of the PMO
- Status of ARCs covered by the
IV. COORDINATION BETWEEN DAR AND
FAPs shall be treated as special projects designed
to achieve specific objectives and targets within a given period of
time. They shall be alowed flexibility in approach and strategies
to prove the effectiveness of innovative schemes or development models,
provided they pursue the same goals and objectives espoused by DAR.
They need also to operate within the bounds of government policies.
As s subnet of DAR's overall program, PMOs shll ensure that implementation
of FAPs is synchronized and complimentary with the regular activities
of the Department. They shall regularly coordinate with the concerned
Regional Directors, PAROs, MAROs and other DAR officials in the course
of the Project imlementation. Likewise, the distribution will be completed
in the areas or ARCs covered by the FAPs. to ensure proper coordination,
the following shall be observed and undertaken:
4.1 Joint Annual Planning and Budgeting
For Projects which requires certain components
to be implemented under the regular activites of DAR, the PMO and
DAR units concerned shall,coordinate to sychronize their plans.
This shall be done in Joint Annual Planning and Budgeting Workshop,
where activities and targets shll be set out, roles and responsibilities
are delineated, budget estimates and inputs required from donor
funds and government counterpart funds are determined. The annual
workplace and budget shall be seen in the context of the overall
plan and budget of the project.
Annual Planning and Budgeting for the succeding
year shall be done every October to November of the current year
to allow enough lead time for the regular budget preparation of
Annual Plans and Budget shall be presented
by the PMO to the SC for approval every December to January of
Budget estimates shall be presented by
source, and shall reflect the donor contribution and the GOP counterpart
fund and the units which shall utilize said funds.
4.2 Joint Quarterly Assessment
PMOs and concerned DAR units and offices shall
assess the progress and physical and financial accomplishments of
the project based on the workplace and the budget. Quarterly assessment
shall be held to disuss the progress, problems, issues and concerns
in project implementation, and recommended solutions. These assessments
shall be held prior to the quarterly SC meetings. Representatives
of the DAR FAPs Monitoring units from PDMS, BARBD, Regional Support
Service Division (SSD), Provincial Beneficiaries Development nd
Coordination Division (BDCD) shall attend the quarterly assessment.
TechCom representatives may also attend.
V. STAFFING OF PMOs
5.1 DAR shall ensure that PMOs for FAPs
are manned by adequate , competent and efficient staff.
5.2 Selectiobn of project staff shall be
open and competetitive. Priority shall be given to qualified staff
within the DAR, especially for project manager positions. This
shall insure accountability and continuity of support even after
5.3 A committee composed or representative
from the office of the Assistant Secretary for SSO, PDMS, BARBD,
Project Managers and other concerned DAR units shall be formed.
Selection of PMO staff shall be done by the Committee, guided by
the requirements of the project and the qualification standards
set forth in the Omnibus Rules of the Civil Service Commission.
Subsequent Special Orders shall be prepared by the Committee, noted
and endorsed by the Assistant Secretary for SSO and approved by
5.4 For regular DAR personnel and staff
who opt and are chosen to be assigned to the PMOs, the following
rules shall apply:
5.5 For FAPs which need the services of Municipal
Agrarian Reform Officers (MARO) and Development Facilitators (DFs)
in ARCs, the following guidelines shall apply:
5.4.1 Mode of Assignment
- Detail shall mean working full-time
in the PMO for the duration of the project while deriving
wages and salaries from DAR. This does not involve a reduction
in rank, status or salary. Monthly honororia shall be given
as additional compensation.
- Secondment shall mean qualifying and
getting a specific position under the PMO platilla. This may
either involve a reduction or increase in compensation. The
staff shall derive his corresponding salary from the PMO.
- Concurrence shall mean working part-time
in the Project with assigned tasks over and above their regular
activities. Honororia shall be granted as additional remuneration.
- Resignation in favor of a position
in the Project.
5.4.2 Regular staff who wish to be detailed
to the PMO shall secure the approval and endorsement of their
immediate supervisor ad Head of the office.
5.4.3 Secondment staff who get a promotion
by assuming the PMO plantilla position shall be entitled to a
leave of absence from DAR for a maximum period of one (1) year.
Sect. 9 of the Omnibus Rules provides that secondment for a period
exceeding one year shall be subject to the approval of the Commission
on Civil Service. Secondment shall be covered by a written agreement
between DAR and the PMO and concurrent in by the employee seconded.
Such agreement shall be submitted to the Commission, through the
Personnel Division, for records purposes.
The seconded employee shall be on leave
without pay in his mother unit for the duration of his secondment,
and during such period, he may earn leave credits which are
commutable immediately thereafter and payable by the PMO.
5.5.1 MAROsn assigned in areas
where land distribution is complete (LAD-Free) may be assigned
on concurrent basis to the PMO to assist in ARC development.
5.5.2 MAROs assigned in project areas where LAD activities are
still on-going should prioritize the latter and shall continue
to report to the PARO, maintaining the present structure of DAR.
However, the MARO shall closely coordinate with the Project Office.
As the situation amy warrant, an ARC Cluster Coordinator may be
deployed in the area to oversee the implementation of the various
components of the project. He shall report directly to the PMO.
5.5.3 Development Facilitators shall
be assigned full-time to ARCs covered by the FAPs. He shall be
under the supervision of the MARO who shall approve his/her performance
contract and evaluation. In matters relating to project implementation,
an assigned or designated ARC Area Coordinator or the PMO itself
supervises and directly coordinates with the DFs.
5.6.1 The Steering Committee,
Technical Committee, Desk Officers, and DAR staff involved and/or
working on detail or part-time to the PMOs shall be entitled to
monthly honoraria, travelling and meal allownace, and other incidental
expenses for the duration of the Project. These shall be in accordance
with provisions of National Compensation Circular No. 75, dated
VI. COMMUNICATION FLOW
6.1 All monitoring and evaluation
forms, prescribed by the PDMS, shall be accomplished by hte PMOs
and all designated units implementing FAPs and submitted to PDMS
on the required cut-off date. These shall cover both the physical
and financial aspects of the projects.
6.2 Specific on the matter are incorporated in the guidelines on
monitoring and evaluation framework to be prepared by the PDMS.
6.3 Based on these reports, PDMS shall prepare a consolidated accomplishment
report of all FAPs for submission to concerned units.
6.4 Copies of all other documents and communications relating to
FAPs and prepared by the PDMS, shall be furnished the Office of
the Assistanct Secretary for his information.
VII. PROGRAMMING MANAGEMENT AND FLOW
OF GOP COUNTERPART FUNDS
7.1 GOP counterpart funds hsall
be allocated only for additional activites or expenses required
to implement FAPs. Regular activities funded under the regular budget
shall not boe included.
7.2 PDMS, in coordination with FMAO, shall be responsible for programming
of GOP counterpart funds for FAPs. Request for GOP counterpart funds
for the succeding year shall be made every first quarter of the
current year. This follows the GOP budget preparation schedule.
In this regard, PMOs shall submit to the PDMS in January of each
year the request for GOP couonterpart funds, specifying the recipient
units or offices.7.3 PDMS shall consolidate
requests for GOP counterpart funds, and submit same to FMAO and
PARC Secretariat for inclusion in the next budget year. PDMS shall
likewise coordinate with these offices to facilitate fund releases
to the PMOs and DAR units concerned.
7.4 The PARC Secretariat adn the DAR-FMAO
shall ensure that the required GOP counterpart funds are sufficiently
allocated to fulifill the Department's commitment to the project.
The said offices shall regularly coordinate with the Department
of Budget and Management (DBM) to facilitate programming and release
7.5 The PMO and AR implementing units shall ensure that GOP counterpart
funds are utilized properly and efficiently. For this purposem,
the following policies shall be adopted:
7.5.1 Each FAP shall have its
own special or trust account in the name of the Project, to be
opened by the implementing unit with the Land Bank of the Philippines.
7.5.2 A separate book of account shall be maintained for each
project for the GOP counterpart funds by the Accounting Division
at all levels.
7.5.3 The PMO and/or DAR implementing unit shall submit quarterly
audited report of disbursement and a Trial Balance every 10th
of the following month to DARCO-FMAO.
7.6 Flow of Funds
7.6.1 PMO or concerned implementing
unit shall submit to PDMS the budget proposal for the coming year
supported by the project profile, wrok atrget and budget estimates.
7.6.2 The Project Implementation and Management
Division (PIMD) of the PDMS shall submit to DAR-Budget Division
the request for counterpart funds, together with the supporting
documents. These shall be incorporated in the Department's budget.
7.6.3 DAR shall submit the Department's budget to DBM for inclusion
in the President's budget.
7.6.4 Upon approval of DAR's budget, the Budget Division shall
inform PDMS of the approved amount/budget. The latter shall advise
the PMO and/or implementing unit to prepare the Worl and Financial
7.6.5 The Work and Financial Plan (WFP) shall then be submitted
and incorporated in the Department's overall WFP, for submission
to DBM, Upon approval, subsequent General or Special Allotment
Release Order (GARO/SARO) shall be issued.
7.6.6 The PMO or DAR unit concerned shall open a special account
in the name of the project with the Land Bank of the Philippines.
7.6.7 The DARr-Budget Division shall issue a Sub-Allotment Advice
(SAA) adn Funding Check (FC) to the concerned office.
7.6.8 Upon report of the Funding Check, the concerned unint shall
deposit the same with LBP in the special account for the Project.
7.6.9 The concerned office shall disburse the funds according
the WFP and subject to the annual accounting rules and regulations.
This Memorandum takes effect 10 January 1997
and supersedes all issuances inconsistent herewith.
Done this 10th day of January, 1997, Quezon
(SGD.) ERNESTO GARILAO