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Local Governance Support Program for Local Economic Development (LGSP-LED)

LGSP-LED is an 8-year collaborative project of the Governments of Canada and the Philippines that will support DILG and other relevant national agencies in creating enabling conditions for decentralization and improving policies, laws, programs and operations to enhance local governance and economic development. The goal of the Project is to foster efficient, responsive, transparent and accountable governance at all levels. Its purpose is to reduce poverty by strengthening local governance and supporting sustainable local economic development (LED). The Program operates both at the national and local levels, providing a better enabling environment for LGUs and improved prospects for local economic development in various communities. 


The focus of LGSP-LED assistance is to improve the capacity of the selected LGUs to create and maintain an environment that sustains more value creation for its enterprises and greater prosperity for its people. Sustainable local economic development dictates that the LGU makes efficient use of its natural resources, minimizing adverse effects brought about by undirected growth. The important contribution of the Project is ensuring that LGUs have the prerequisite enabling environment in pushing its businesses and residents oriented towards pro-poor, gender responsive and environmentally sound local economic development.

Phase 1 - Working with Competitive LGUs. This Phase which would cover the initial 15 months (2008-2010), will focus on strengthening the LED programming and partnership arrangements of selected four (4) eligible LGU alliances. These are LGUs that have begun the LED process and would need assistance for further LED support and implementation.

The lessons learned and experience gained during this Phase will serve to guide the succeeding phases of LGSP-LED implementation. It is also intended to inform CIDA and DILG on whether the LGUs should continue into the longer term phase and/or attract more LGUs into the Project.

Phase 2 - Working with LGUs in a State of Readiness for LED. This Phase is anticipated to run for the following subsequent three (3) years (2010-2013), and will work with eight (8) LGUs, that have demonstrated commitment to pursue a transparent and accountable process of LED and possess the technical, managerial, and financial capacity to accomplish the development goals of the LGU. Separate selection guidelines will be established based on lessons learned in Phase 1.

Phase 3 - Complementation and Leveraging Donor Resources for LGU LED Sustainability. Phase 3 will run for another three (3) years (2013-2016) and may involve expanding coverage of LGSP-LED programming by DILG to other LGUs through complementation and leveraging with other donors and financial institutions. In this stage, LGUs are able to secure complementary investment support and funding assistance for their LED initiatives.

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Outcome Area: Business-Friendly and Competitive LGUs
Status: Completed
Telephone: (083) 877-2971