Closed Compact Report: Philippines Compact | April 2018

The Kalahi-CIDSS Project

  • $120,000,000Original Compact Project Amount
  • $124,999,276Total Disbursed

Estimated Benefits

Estimated benefits correspond to $120.0 million of project funds, where cost-benefit analysis was conducted.

Estimated Benefits for the Kalahi-CIDSS Community-Driven Development Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
At the time of signing 12.6 percent 5,200,000 $16,600,000
At compact closure TBD TBD TBD

The closeout ERR will be based on the results of the post-compact impact evaluation, expected early 2018.

Project Description

During the previous five decades, the Philippines had consistently lagged behind other countries in the region with respect to government development expenditures as a percentage of GDP and infrastructure investment and quality. Inadequacies in infrastructure were a critical constraint to economic growth in the country, and the availability of basic infrastructure (water, sanitation, roads, and electricity) had deteriorated. In addition, the provision and use of education and health services varied across regions, particularly as a function of income.

The Kalahi-CIDSS Project – Kapit-Bisig Laban sa Kahirapan (Linking Arms Against Poverty) Comprehensive and Integrated Delivery of Social Services – aimed to improve welfare in rural areas by targeting communities where poverty incidence was greater than the national average with small-scale, community driven development projects that targeted basic infrastructure needs.  The project built upon and supported the application of the participatory planning, implementation, and evaluation methodology developed by the Government of the Philippines Department of Social Welfare and Development, in collaboration with the World Bank.  The first phase of the World Bank-funded project (called KC1) was successfully implemented from 2003 to 2009 in 4,229 villages, or barangays, across 42 provinces, providing a wealth of information for MCC’s project appraisal.

Communities were selected to participate in the Kalahi-CIDSS Project based on specific criteria, including geographic location, poverty incidence, and the ability of communities to participate in the entire program. After a community was enrolled in Kalahi-CIDSS, the Community Empowerment Activity Cycle began. Each cycle followed a progression of strategies and activities to promote transparency and accountability. Projects were designed through a consultative process that incorporated input and priorities of the entire community, including women.  From procurement to implementation to maintenance, all processes were discussed and agreed upon by the community. Over the course of three cycles, MCA-Philippines’ National Project Management Office gradually handed off responsibilities for the implementation of Kalahi-CIDSS activities to local governments to sustain.

The project empowered communities to participate fully in development activities that addressed the needs they identified and provided guidance on managing assets in a sustainable way.  It improved the link between community priorities and the development programs of local government, and used investments in a transparent manner to promote greater accountability and reduce poverty.  Grants were provided directly to local communities, who were then responsible for project selection, the procurement of goods and services, and in many cases, the operations and maintenance of physical assets.

Complementing projects like farm-to-market roads, school buildings, health stations, drainage systems and footpaths, the program also included a $1 million Gender Incentive Grant to promote gender equality and women’s empowerment at the village and municipal levels.  The Gender Incentive Grant funded activities that addressed barriers to either men or women participating in community activities, decision-making processes, and economic activities such as non-traditional skills training for women, women support shelters, and maternity services. The effort particularly emphasized and encouraged women’s leadership and opportunities for paid employment through Kalahi-CIDSS. Women community volunteers made up 10 percent of paid skilled and unskilled labor in community project construction in 2015, a significant increase from a baseline of 3 percent in 2010. And more than 1,399 women benefited from certificate training on non-traditional skills such as plumbing, welding, electrical installation, carpentry, painting, tile-setting, hollow blocks-making and masonry.

With 3,760 small-scale, community-driven development projects in six regions of the Philippines, Kalahi-CIDSS benefited nearly 1 million households.  In 2014, citing the success of the Kalahi-CIDSS Project and other community-driven development programs around the world, the Government made Kalahi-CIDSS a national model for development project planning and implementation with a focus on inclusive development and poverty alleviation.  The nationwide roll-out incorporated compact-introduced enhancements, such as environmental safeguards, enhanced methods of design and construction, and support for gender integration into project design and implementation.

Evaluation Findings

Kalahi-CIDSS Project

The impact evaluation of the Kalahi-CIDSS Project will answer research questions in four themes:

  1. Does the project increase household consumption and labor force participation?
  2. Does the project increase government responsiveness to community needs, reduce corruption and increase transparency?
  3. Does the project increase participation in local governance and contribution to public goods?
  4. Does the project build groups and enhance trust?

MCC also commissioned a Cost Study to document the costs and quality of infrastructure built through community-driven development versus centrally planned projects. 

Status of the Evaluation
Component Status
Baseline Report Completed in 2013.  Report and de-identified data are public.
Midline Report Completed in 2015. Questionnaires are public, but data are not.  Data sets will be published with endline data sets in 2018.
Endline Report Expected March 2018.

Key performance indicators and outputs at compact end date

Key performance indicators and outputs at compact end date
Activity/Outcome Key Performance Indicator Baseline End of Compact Target Quarter 1 through Quarter 20 Actuals (as of Dec 2012) Percent Compact Target Satisfied (as of Dec 2012)
Grants for Community Projects Activity Number of barangays that have completed all trainings during the social preparation stage 0 3,000 3,760 125%
Number of Gender Incentive Grant-Funded Sub-Projects 0 No Target 55 No Target
Number of sub-projects completed with 100% physical accomplishment 0 3,217 4,011 125%
Number of sub-projects that contribute to disaster risk reduction (e.g. flood control, soil and water protection, coastal rehabilitation, mangrove management) 0 No Target 674 No Target

Explanation of Results

As highlighted above, the Government of the Philippines Department of Social Welfare and Development exceeded implementation targets, specifically, more villages completed all five stages of training and more small-infrastructure sub-projects were constructed than planned. The impact of this project on beneficiaries will be assessed in the forthcoming Impact Evaluation expected in 2018.