QuestionsQuestions (LETTER OF INSTRUCTION NO. 633)
It directs the creation and implementation of a local government equipment acquisition loan program to help depressed and lagging areas upgrade local governments’ equipment capability for infrastructure development, consistent with the President’s countryside development policy.
For the acquisition and purchase of brand new construction and/or maintenance equipment to be allocated to participating provinces under the Rural Roads Program.
It indicates that the loan repayments are structured according to a scheduled plan (programmed amortization) for participating provinces.
The Department of Local Government and Community Development (as stated in the LOI).
A Loan Agreement between the Republic of the Philippines and the United States of America.
To accelerate infrastructure development in the countryside, with such accelerated development being “principally anchored” on the equipment acquisition.
Provinces, cities, and municipalities that are not beneficiaries of the proceeds of the Rural Roads Program.
The Philippine National Bank (PNB), the Development Bank of the Philippines (DBP), and the Land Bank of the Philippines (Land Bank).
Concessionary and liberal amortization schemes.
They, in coordination with PNB, DBP, and Land Bank, must immediately formulate the guidelines and procedures necessary for effective implementation of their respective responsibilities.
Because of the need for a package of basic infrastructure inputs for depressed and lagging areas and to upgrade local government equipment capability needed for project implementation and accelerated infrastructure development.
It frames the loan program as part of broader countryside development—mentioning expanded credit and technological support to agriculture, compact farming, rural irrigation, and feeder roads—by targeting infrastructure inputs and equipment for LGUs.
It implies that accelerated infrastructure development is largely dependent on LGU equipment capability, hence the national government’s role in upgrading that capability through loans.
LGUs (provinces, cities, municipalities) that are already beneficiaries of the proceeds of the Rural Roads Program are excluded from the equipment acquisition loan program contemplated by the LOI.
It requires formulation of guidelines and procedures deemed necessary in carrying out their respective areas of responsibility for effective implementation.