DILG DTI Launch Project to Streamline Business Permits

DILG, DTI Launch Project to Streamline Business Permits and Licenses MOVING FORWARD Proposed Actions Ms. Lucy Lazo Consultant GIZ Decentralization Program 30. 03. 11 Seite 1

BPLS Streamlining Project Context Simplifying BPLS in the last 10 years benefited some 62 cities and 209 municipalities nationwide. Performance standards for business registration processes announced during the BPLS Up-scaling Project on 6 August 2010 by the Secretaries of DILG and DTI. 30. 03. 11 Seite 2 2 Page 2

Performance standards stipulated in the JMC 01 signed on 6 Aug 2010 Unified Form Standard Five steps Securing an application form from the city or municipality Filling or submission of the accomplished application form with attached documentary requirements One time assessment of taxes, fees and charges 30. 03. 11 Seite 3 3 Page

Performance standards Securing the Mayor's Permit upon submission of Official Receipt as proof of payment of taxes, fees, and charges imposed by the LGU Compliance will require: Inspections to be done within a year after issuance of business permit. Bureau of Fire to enter into Mo. A with cities and municipalities to implement streamline procedures and paing fire code fees to enable LGUs to implement above 5 steps 30. 03. 11 Seite 4 4 Page

Performance standards Standard Processing Time New permits: strive for 5 days or less for streamlined BPLS; Not more than 10 days for release of the permit Renewals: not more than 5 days for release of permit; strive for one day or less Signatories Mayor Treasurer or BPLO 30. 03. 11 Seite 5 5 Page

Objectives of Consultancy 1) Review the existing knowledge products on BPLS, i. e. training manual and other outputs of the Trainers’ Training; 2) Assess the regional action plans based on the Trainers’ Training workshop; 3) Explore possible options to utilize the trainers’ pool most effectively (business model); 4) Recommend pricing and costing in the implementation of the reforms; 5) Recommend an effective and viable implementation structure of the business model. 30. 03. 11 Seite 6 6 Page 6

Coordinated by: LGA DILG Regional DTI & DILG Milestones: TOT 453 Trainers, of which approx. 30% are ready for deployment Rollout Trainings for LGUs Output: Action plan with LGU commitment (defined steps from current practice to streamlining target) Proposed Business Model Reform Process Implementation of streamlined reforms according to national standards* * National Standards • Unified form • 5 Standard steps • Standard processing time • Number of signatories 30. 03. 11 Seite 7 7 Page

Major Results (1/3) Only 42 percent of the targeted 108 LGUs were prepared to roll out the BPLS streamlining reforms in January 2011. The business sector has yet to be systematically harnessed in monitoring and sustaining the streamlining reforms. There is a Government Quality Management System (GQMS) where BPLS streamlining can be incorporated. ISO certification is another option to establish a quality assurance scheme. However, this is not recommended due to LGUs’ resistance to change/adapt once ISO certified. 30. 03. 11 Seite 8 8 Page 8

Major Results (2/3) There are existing incentive schemes meant for LGUs which can be tapped to encourage LGUs to undertake BPLS streamlining. Computerization of the BPLS streamlining has been preceded by previous efforts like the e 4 MD and e. Gov, or the i. BPLS by GTZ. There has not been as much publicity around the results of the up scaling of BPLS streamlining. 30. 03. 11 Seite 9 9 Page 9

Major Results (3/3) Toward universal roll out, a key cost for LGUs would be the training of front line staff as well as briefing and orientation of the LCE and other concerned officials at the LGU. A corps of trainers and training manuals and instructional materials have already been developed with GTZ support during the last year. LGUs must be reminded that they should allocate some funds to cover the cost of coaching and mentoring as they prepare for their streamlining roll out. Actual roll out cost can be embedded in their work and financial plan; funds to be drawn from their annual program budgets. 30. 03. 11 Seite 10 10 Page 10

Table 7. Estimated Costs Per LGU Expense item Air fare Unit cost Number of persons. Total cost in pesos 6, 000 (assumed average cost person) Tuition, per diem, transport 11, 200 Trainers’ mobility and professional fees 10, 000 5 30, 000 5 56, 000 2 trainers 20, 000 Mentoring and coaching 20, 000 Sub-total Executive Briefing and orientation 126, 000 5, 000 Sub-TOTAL Contingency (10 %) 131, 000 13, 000 TOTAL 30. 03. 11 144, 000 Seite 11 11 Page 11

The Proposed Actions (1) I. Universal application of BPLS streamlining to all LGUs Need for sustained social marketing, advocacy and capacity building. Continuing capacity development of front line service staff, including DILG and DTI staff. Continuing dialogue with partners and stakeholders should help in vital decision making and management of reforms II. Strengthen the monitoring and evaluation system and engage the business sector 30. 03. 11 Seite 12 12 Page 12

Proposed Actions (2) Develop quality consciousness among LGUs and lay the ground for a quality assurance scheme for BPLS streamlining Install a quality assurance system. Quality Management Team Quality and Operations Manual. Incentive scheme for good performers in BPL and other LGU services Computerization. Examine the various initiatives to computerize BPLS and endeavor to harmonize agency based systems. 30. 03. 11 Seite 13 13 Page 13

Recommendations Agency requirements appear to be the bottlenecks in the streamlining reforms such as the Bureau of Fire Prevention requirements. These issues need to be resolved if the streamlining process is to come full circle. Continuing advocacy must be pursued to get more LGUs interested in BPLS streamlining and to initiate practical actions toward streamlining. There is a need to fast track the accreditation of training service providers and certification of coaches. 30. 03. 11 Seite 14 14 Page 14

Recommendations To intensify roll out in the region GTZ may consider having jump start funds for the LGUs who might be interested. Popularize and enforce quality standards among the LGUs. Set up a private sector led monitoring scheme This will require advocacy and dialogues with chambers to incorporate this work in their regular program Strengthen DILG-DTI capacities to oversee and monitor. 30. 03. 11 Seite 15 15 Page 15

Recommendations There are many initiatives at computerizing LGU services, including BPLS. A closer look at these initiatives appears to be necessary. The discussions with the National Computer Center (NCC) may be the necessary first step. Presentation to the BPLS Oversight Committee 30. 03. 11 Seite 16 16 Page 16

BPLS streamlining is a continuing journey… 30. 03. 11 Seite 17 17 Page 17

Thank You! 30. 03. 11 Seite 18