LGUs can use the allotted 20% development fund of its annual Internal Revenue Allotment to disaster preparedness and response efforts to contain the spread of COVID-19.
LGUs can use the 20% development fund for personal protective equipment (PPEs), hospital equipment and supplies, testing kits, disinfectants, sprayers, and disinfection tents. LGUs can also use this for food, transportation, testing laboratories, and accommodations for patients, frontliners, and the homeless.
It provides a legal basis for LGUs to utilize its 20% development funds for their disaster preparedness and response efforts to contain the spread of COVID-19, and to continue to provide basic services to the affected population.
It expands the current list allowable development projects under DILG-DBM JMC No. 2017-1:
- Procurement of personal protective equipment
- Procurement of equipment, reagents, and kits for COVID-19 testing
- Procurement of medicines and vitamins
- Procurement of hospital equipment and supplies
- Procurement of disinfectants, sprayers, disinfection tens, and other disinfecting supplies, and misting equipment
- Food, transportation (including fuel), and accommodation expenses of medical personnel and other LGU personnel directly involved in the implementation of COVID-19 related programs, projects, and activities, (PPAs)
- Food assistance and other relief goods for affected households
- Expenses for the construction/ repair/ lease/ rental of additional space/ building to accommodate COVID-19 patients and persons under monitoring/ investigations
- Expenses for the operation of stand-alone/ mobile testing laboratory
- Expenses for the purchase/ rental of tents for temporary shelters of the homeless
- Expenses for training of personnel in the conduct of COVID-19 testing and other related trainings
- Other necessary COVID-19 PPAs and expenses.
It reiterates the non-allowable expenses, except as enumerated above, under item 4.0 of DILG-DBM JMC No. 2017-1.
It requires LGUs to prepare a supplemental investment program as all COVID-19 related expenses to be funded should be part of their approved Annual Investment Plans (AIPs).
It allows LGUs to realign their existing PPAs under the 20% development funds.
It reiterates that disbursement and utilization of the 20% development fund shall still be subjected to the pertinent provisions of the Government Procurement Reform Act (RA 9184) and its revised IRR, and other relevant policies.