Tuesday, June 17, 2025

LGUs must buy local materials with P700M green program fund — DBM

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The Department of Budget and Management (DBM) is urging local government units (LGUs) to prioritize the use of domestic materials and locally produced goods in the implementation of a green infrastructure program funded under the 2025 national budget.

The directive is outlined in Local Budget Circular No. 164, issued by the DBM on May 19, which sets the guidelines for the release and utilization of the P700 million appropriated for the Local Government Support Fund-Green Green Green Program.

Aiming to boost the local economy and support homegrown industries, the circular said the fund is earmarked for the construction, rehabilitation and repair or improvement of the following projects. These are green open spaces such as public parks and plazas, nature and family/ and recreational parks, arboretum, botanical gardens and river esplanades; and infrastructure for active mobility such as: physically separated bicycle lanes; bike racks; elevated or at-grade pedestrian footpaths and walkways; sports facilities; and recreational trails.

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The circular states that beneficiary provinces, cities and municipalities shall use the amount appropriated under the LGSF-Green Green Green Program to fund exclusively the eligible projects. In case the project cost exceeds their respective allocation under the program, the beneficiary LGUs or other agencies concerned may provide counterpart funds available for augmentation.

The five LGUs allocated with the largest amounts under the program are the

cities of Manila with P39.235 million, Mandaluyong P28.266 million, Caloocan P21.998 million, Makati P21.768 million, and Navotas P21.183 million, the circular read.

Thirty-four other cities and municipalities and 15 provinces are allocated different amounts for the program this year.

All projects are expect to conform strictly with the provided design concepts, environmental principles and requirements.

“The proposed project shall be readily implementable within the prescribed timelines and shall have no issues related to its implementation, such as, but not limited to, site/land title, including informal settlers thereon, illegal encroachment, legal disputes, right-of-way acquisition, among others, that would require relocation and/or resettlement,” the circular said.

The LGUs must ensure that the proposed projects should result in a functional and usable public open space.

The public spaces must also consist of the following core components: hardscape; softscape; landscape utilities, including landscape lighting, landscape drainage and landscape irrigation; and ancillary structures such as restrooms, utility rooms, storage, maintenance rooms and those necessary for the efficient operation of the public open space project, it added.

“Disbursement and utilization of funds by the LGUs shall be subject to pertinent provisions of existing government procurement laws, its implementing rules and regulations, and any relevant policies issued by the Government Procurement Policy Board, as well as the applicable budgeting, accounting and auditing laws, rules and regulations,” the circular said.

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