Attachment J1 - Statement of Objectives.pdf

Attachment J.1: Statement of Objectives

1. Introduction

This Statement of Objectives (SOO) is for the Contractor to provide technical and support services to implement the Urban Connect activity over a five-year period. The overall goal of Urban Connect is to promote inclusive and resilient economic growth of secondary cities by (1) enhancing local economic development and (2) improving public service delivery. This activity will engage a contractor that can effectively and efficiently provide technical advisory services and program support services that will assist partner cities1 under USAID’s Cities Development Initiative (CDI). There are two main sections in this activity, one focused on the provision of technical expert services and program support and the second will focus on managing supplemental task orders and grant awards.

The Urban Connect activity supports the goal of USAID/Philippines’ Cities Development Initiative (CDI) of spurring inclusive development through better governance, economic growth, and environmental and community resilience in secondary cities. CDI is a whole-of-Mission approach that contributes to the overall USAID/Philippines’ development objective of accelerating and sustaining broad-based and inclusive growth by enhancing the role of secondary cities as regional engines of growth and opportunity. This activity will closely coordinate with other USAID activities that are co-located in the CDI partner cities2. Working with other USAID-supported projects, Urban Connect will promote an integrated approach and complementary interventions in advancing the goals of the CDI program.

This activity invites potential offerors to develop cost effective solutions and innovative approaches to meet the intended results. Offerors are encouraged to provide responses that include information, evidence-based and data-informed analyses, strategies, and recommendations that demonstrate approaches for the implementation of a technical assistance activity that will help advance the objectives of the CDI program.

2. Background and Context

Cities or urban centers are the drivers of economic growth, employment generation and improved quality of life. Cities are also centers for learning and innovation, entrepreneurship, market opportunities, and infrastructure development. Rapid economic growth is usually

1 Urban Connect will extend assistance to the current nine (9) CDI partners, namely, Batangas, Cagayan de Oro, General Santos, Iloilo, Legazpi, Puerto Princesa, Tacloban, Tagbilaran and Zamboanga cities. This activity may also work in the peripheral municipalities neighboring these cities and other cities that will be included by USAID under its CDI program up to an additional three to four (3-4) cities during the life of the project (LOP).

2 Other USAID-funded activities that may be providing assistance to CDI partners are the Cities for Enhanced Engagement and Governance (CHANGE), the Delivering Effective Government for Competitiveness and Inclusive Growth (DELIVER), Climate Resilient Cities, Safe Water, Fish Right, SIBOL, ReachHealth, among others. USAID also supports global and regional programs such as USAID/RDMA’s Resilient Cities Asia project and the Cities Alliance project with the United Nations.

associated with urbanization as labor moves from the rural-agricultural sector to higher-value, urban-centered industry and services. Agglomeration and scale economies are also associated with the growth of cities, as proximity and density reduce the per capita costs of providing infrastructure and services, and create knowledge spillovers and specialization. Urban living is linked with higher levels of literacy and education, better health, lower fertility and a longer life expectancy, enhanced opportunities for cultural and political participation and, overall, a better quality of life3.

However, urbanization has already led to increasing demands on local governments which is straining their capacity to respond. As urban populations grow rapidly, there are increasing pressures on the city’s food security, land use, and provision of basic services such as water and sanitation and public transportation. The benefits from urbanization are often uneven. Many urban residents, particularly the urban poor, lack access to basic services and infrastructure, such as safe and accessible drinking water, education, and health care. They also face problems of congestion, mobility, sanitation, and waste collection. Capacity and resource constraints limit governments’ ability to respond to these demands. Problems of equal access, resilience, and productivity, to name a few, often lead to uneven development and can constrain long-term growth. Given the high concentration of population and economic activities in urban areas, cities have become particularly vulnerable to the COVID-19 pandemic and its economic and social aftershocks. How cities respond to the pandemic in the near to medium term will have a significant effect on its growth prospects and is important to consider.

3. Strategic Approach and Purpose

3.a. Strategic Approach

The Mission’s approach will support the inclusive, sustainable, and resilient growth of CDI partner cities so that they are safe and livable places that can spur regional development. The Urban Connect activity will be cognizant of the experiences and build on the successes of the Strengthening Urban Resilience for Growth with Equity (SURGE) activity (2015 to 2021) such as in the areas of ease of doing business, public financial management (PFM), competitiveness, urban development and learning program, land use planning, climate action works, water, sanitation and hygiene services4. SURGE investments led to improved city's performance in the annual Cities and Municipalities Competitiveness Index (CMCI), increased number of business registrations with business one-stop-shops, streamlined procedures for construction permits and land registration, more investments with a strengthened Local Economic Development and Investment Promotions Office (LEDIPO), better resource mobilization with a system of asset management and improved public financial management, updated Comprehensive Land Use

3 For some research on urbanization and economic growth, see Chen M, Zhang H, Liu W, Zhang W (2014) The Global Pattern of Urbanization and Economic Growth: Evidence from the Last Three Decades. PLoS ONE 9(8):

e103799. https://doi.org/10.1371/journal.pone.0103799; I. Turok and G. McGranahan. (2013) “Urbanization and Economic Growth: The Arguments and Evidence from Africa and Asia”Sage Journals Volume: 25 issue: 2, page(s):

465-482; J.V. Henderson. (2003). “Urbanizationization and Economic Development” Annals of Economics and Finance Vol. 4 http://down.aefweb.net/AefArticles/aef040203.pdf; and E. Glaeser. (2011). “Cities, Productivity and Quality of Life” Science Vol. 333 No. 6042 https://science.sciencemag.org/content/333/6042/592.full.

4 The accomplishment reports related to the SURGE activity will be made available in the USAID Development Experience Clearinghouse (DEC).

https://doi.org/10.1371/journal.pone.0103799 https://journals.sagepub.com/toc/eau/25/2 http://down.aefweb.net/AefArticles/aef040203.pdf https://science.sciencemag.org/content/333/6042/592.full https://dec.usaid.gov/dec/home/Default.aspx https://dec.usaid.gov/dec/home/Default.aspx

Plans (CLUP) and Annual Investment Plans (AIP), and improved disaster preparedness through enhanced access to climate information and linkages to hazard assessment tools, among others.

The SURGE activity benefited from strong local ownership, especially from the city mayors;

robust stakeholder participation, particularly from the private sector; and strengthened coordination within and between LGUs.

The Urban Connect activity aligns with the USAID’s mandate to promote self-reliance, resilience, and advance the objectives of the U.S. government’s vision for the Indo-Pacific region. For growth to be more inclusive and for regions to be more self-reliant, economic opportunities and economic growth need to be dispersed outside the major urban centers of Metro Manila, Metro Cebu, Metro Davao and its peripheral areas. The secondary cities of CDI will act as engines of growth, driving development in nearby rural areas to advance equitable distribution of wealth and opportunities, thus decongesting existing primary urban centers, and making development more inclusive5. Deconcentration will also encourage investment in broader regions of the country. This activity also aligns with USAID’s Urban Strategy6 that seeks a systems-based, holistic approach to sustainable urban development that integrates good governance, food security, economic growth, health, education, climate change, and resilience programming in a context of urbanization.

Urban Connect contributes to the USAID/Philippines’ Country Development and Cooperation Strategy (CDCS) 2020-2024’s goal of a “well-governed and more self-reliant Indo-Pacific partner.” This activity is intended to be a cross-cutting activity supporting other USAID projects across the different Development Objectives. More specifically, this activity directly contributes to Intermediate Result (IR) “More Responsive Local Governance” under Development Objective (DO) 1 “Democratic Governance Strengthened”, DO 2 “Inclusive and Market-Driven Growth Expanded,” and DO 3 “Environmental and Community Resilience Enhanced”. As the apex activity for the Mission’s CDI Strategic Approach (2020-2024), this activity will work towards the overall goal of better governed, prosperous and resilient secondary cities in the Philippines through achieving the intermediate results of more responsive local governance, inclusive and resilient growth at the sub-national level, and environment and community resilience enhanced.

3.b. Purpose

Theory of Change

The initial theory of change of Urban Connect states that If local economic development is advanced and access to opportunities and public service delivery is strengthened and improved, then inclusive and resilient economic growth in secondary cities will be enhanced. The TOC is also premised on the robust engagement of the private sector and other sectors, that policies promote gender protections and social inclusion, and climate resilience.

5 For the rationale behind CDI, see G. Steele, J. Avila, D. Miller and G. Brittan (2014) “Ending Extreme Poverty in the Philippines through Urban-Led Growth” USAID Frontiers in Development at https://www.usaid.gov/sites/default/files/documents/1870/USAID_Frontiers_in_Development_2014.pdf. Also see D. Rondinelli (1983). “Dynamics of Growth of Secondary Cities in Developing Countries” Geographical Review Vol.

73 No. 1. https://www.jstor.org/stable/214394?seq=1 6 See https://urban-links.org/wp-content/uploads/USAIDSustainableUrbanServicesPolicy.pdf https://www.usaid.gov/sites/default/files/documents/1870/USAID_Frontiers_in_Development_2014.pdf https://www.jstor.org/stable/214394?seq=1

The primary aim of Urban Connect is to promote inclusive and resilient economic growth of CDI cities by (1) enhancing local economic development and (2) improving public service delivery.

To advance local economic development, this activity will (1a) improve the local regulatory environment for private investment and enterprise growth, and (1b) strengthen inter-LGU coordination and connectivity. To improve public service delivery, this activity will (2a) strengthen public financial management, (2b) advance e-government solutions and (2c) improve delivery of health and education services. As a cross cutting objective, this activity will engage the private sector, promote resiliency, and ensure gender and social inclusion. Below is the initial Results Framework (RF) of Urban Connect. However, the Offerors will come up with a detailed RF including proposed interventions at the sub-objective level.

Results Framework

Goal: Inclusive and resilient growth of secondary cities advanced

Objective 1: Local economic development enhanced

Objective 2: Public service delivery improved

Sub-objective 1a: Local regulatory environment improved

Sub-objective 1b:

Inter-LGU coordination and connectivity strengthened

Sub-objective 2a: Public Financial Management strengthened

Sub-objective 2b:

E-government solutions advanced

Sub-objective 2c: Improved delivery of health and education services

Cross-cutting objectives: Private sector Engagement, Gender Protections, Social Inclusion, and Climate Resilience and Disaster Preparedness

4. Primary Technical Assistance Activities

The contractor will furnish all personnel, materials, equipment, supplies, facilities, services and perform all activities necessary for, or incidental to, the performance of work to achieve the objectives below:

4.a. Technical assistance objectives

Objective 1: Local economic development enhanced

As urban populations continue to grow, there is growing demand for cities to attract more investment, generate jobs and increase incomes. Many LGUs have sought to promote local economic development (LED) but very often lacked information and technical expertise on how to effectively implement LED or how to scale these projects. Many local initiatives in industry development tended to be alike, particularly in locations that were similarly endowed. Moreover, increasing urbanization has given rise to issues, such as traffic and infrastructure development, that transcend local boundaries and impact on economic growth of cities. Growing urban populations have led to spill-over effects to neighboring localities and created the development of peri-urban areas. At the same time, these adjacent municipalities perform an economic support role to the urban core, thus creating a broader growth corridor. Economies of scale, economic interdependence, and externalities are now major considerations in urban planning.

Sub-objective 1a: Local regulatory environment improved

The quality of the local regulatory environment is critical for local economic development.

Rules, permits, and licenses issued, controlled and implemented by the local governments impact on investment, production and consumption decisions in the city. City governments issue business licenses and permits to establishments or enterprises before firms can operate in their respective local jurisdictions. They also impose taxes and fees that impinge on the cost of doing business in their locality. Poor regulatory environment leads to higher transaction costs thereby undermining business confidence and local competitiveness. Reducing regulatory burden and improving regulatory quality will attract more investment and businesses that will generate jobs and increase incomes. LGUs should be incentivized to adopt regulatory best practice, advance regulatory reforms and take into account the impact of regulatory changes on urban development. Reforms can include better harmonization of policies across neighboring municipalities and with national mandates, strengthened institutional capacities, and improved implementation, compliance and enforcement of local regulations. Urban Connect will promote greater interface between the local government and business in regulatory development and implementation.

Sub-objective 1b: Inter-LGU coordination and connectivity strengthened

Effective horizontal and vertical coordination mechanisms among local governments reduce administrative fragmentation and foster institutional cohesion in areas of common concern. Area‐ wide institutional arrangements and projects allow participating local governments to realize economies of scale, such as pooled procurement of goods for public consumption. They also optimize urban-rural economic linkages and product and service value chains, facilitate exchange of information, share resources and expertise for the benefit of less developed local governments, and better plan and execute development solutions to problems which transcend local jurisdictions, such as environmental issues. Urban Connect will strengthen and improve collaboration or partnerships between partner cities, adjacent local government units, and other relevant stakeholders to strengthen horizontal coordination in addressing common problems or concerns. It will improve vertical relationships that impact on the area-wide development approach, particularly with national government agencies to improve communication, harmonize funding and policy prioritization, and for greater complementation in programs.

Illustrative activities:

● Undertake regulatory impact assessments of local ordinances

● Lower regulatory transaction costs

● Strengthen investment planning and promotion

● Strengthen metropolitan arrangements and other coordinative mechanisms

● Facilitate value chain development within the larger economic growth corridor

Illustrative outcomes over life of project:

● Increase in number of newly registered businesses

● Increased value (in USD) of new investment in targeted cities as a result of USAID assistance

● Increased number of private sector partners engaged to support targeted activities

● Increased value (in USD) leveraged from private sector partnerships due to USG assistance

● Improved overall performance in the Cities and Municipalities Competitiveness Index

(CMCI) (city and province)

Objective 2: Public service delivery improved

The quality and quantity of basic public services depend in large part on the ability of local governments to manage their resources. But local financial systems are characterized by high dependence on transfers from the national government (the Internal Revenue Allotment system), low levels of local revenue generation, weak revenue administration, lack of taxpayer and asset information, and poor budget planning and monitoring. There is significant variation in the form and content of local public finance reporting and weak vertical linkages between planning and budgeting. The weaknesses of public financial management systems in local governments constrain their ability to invest in infrastructure, deliver high quality public services, and address other development challenges. Recently, a Supreme Court decision has mandated higher levels of internal revenue allotment (IRA) to be distributed to local government units as part of the landmark Mandanas ruling. It is expected that when this ruling becomes operational, local governments will see a dramatic increase in funding with some estimating the total increase to be around Php300 billion (USD6 billion) in the initial year. In preparation for this significant transfer of resources, the national government has already indicated that they would be delegating additional mandates to local governments, thereby adding more pressure on the already limited capacity of partner cities, and further straining the public service delivery capacities at the local level.

Sub-objective 2a. Public financial management strengthened

There is a significant body of rulings, issuances, and guidelines from the national government to support good financial management at local levels, and to ensure that the national transfer of resources as well as locally-generated funds are used in the most effective and efficient manner.

These include rules on better compliance in operational budgeting, sectoral investment planning, cash programming, management of liabilities, better tax administration, and financial and other relevant internal controls. These rules cover a wide range of earmarked funds such as the Special Education Fund, the Special Health Fund, disaster risk reduction and management funds, national government funds under Unified Resource Allocation Framework, and government and private financing and Performance Challenge Fund, among others. Given these, many local governments have a felt need to improve the capacity of local budget and planning officers’ competencies as well as to introduce technology and digital solutions where appropriate. Urban Connect will strengthen the capacity of local government units to improve their financial performance and be more responsive to PFM rules and standards to become better stewards of both national and local funds.

Sub-objective 2b: E-government solutions advanced

E-government solutions are a platform for significantly improved efficiency of operations and the delivery of public services. Several cities have set up on-line permit and licensing systems, land information systems and e-payments for property taxes and other local fees. Other initiatives include developing constituent-centric digital services, such as in healthcare and social welfare. “Smart” solutions are also being developed to address traffic congestion and transport mobility, pollution and environmental resilience, disaster preparedness, public safety and health, water service delivery and utility operations (e.g. billing and collection), and workforce development. This activity will accelerate the adoption of e-government solutions to improve public service delivery in partner cities and address key development challenges. It will also strengthen smart government initiatives aimed at streamlining processes and reducing red tape, improving transparency, and broadening access to information.7

Sub-objective 2c: Improved delivery of health and education services

Urban Connect will improve the delivery of health and basic education services by strengthening the capacity of local governments to carry out their legal mandates under the Universal Health Care Law and the Governance of Basic Education Act. The purpose is to improve the ability of partner cities to effectively carry out their functions given the devolution of certain health and education mandates. This sub-objective will strengthen the local government’s ability for evidence-based policy planning, implementation, and monitoring and evaluation in the delivery of locally-mandated health and education services. A special focus will be in improving local mechanisms (such as the Local Health Board and the Local School Board) and their ability to generate and use legally earmarked funds for the delivery of local health and education services.

This sub-objective will also improve the ability of local government partners to effectively engage the private sector in the delivery of health and education services.

Illustrative activities:

● Establish digital or on-line platforms for frontline government service delivery, including permits issuance and payments of fees

7 In June 2020, the DICT launched its smart cities program called “Digital Cities 2025: A Brighter Future Awaits in the Countryside” which aims to support 25 cities around the country.

● Strengthen financial reporting and audit processes

● Streamline local procurement processes and strengthen local public-private partnership

(PPP) capacity

● Monitoring use of the Special Education Fund and Special Health Fund

● Strengthening information systems for Local School Boards and School Governing

Councils.

● Developing technology-based solutions for water utilities or city governments

Illustrative outcomes over life of project:

● Improved performance in Public Expenditure and Financial Accountability (PEFA) assessment

● Improved performance in Public Finance Management Assessment Tool

● Increased local revenue collection rates

● Increased number of local government units using internet (by publicly accessible websites) to deliver public services

● Increased number of local government processes transacted or delivered on-line

● Increased number of selected Internet-based services available to citizens, by level of sophistication of service

● Increased public satisfaction with local government service delivery (survey)

● Improved water and/or sanitation efficiency and sustainability of service delivery

● Improved utilization of Special Health Fund

● Improved utilization of Special Education Fund

Cross-cutting Objectives

As a cross-cutting objective, private sector engagement will be a core approach of Urban Connect. This activity will leverage private sector resources for greater development impact to supplement limited USAID funds as well as to access specialized technologies, knowledge and expertise of the business sector consistent with USAID’s Private Sector Engagement Policy. Urban Connect will build on the relationships developed and supported under the SURGE activity with local chambers of commerce, industry associations, academe and other civil society organizations.

This activity will ensure that urban planning, policies, and programs are more gender-sensitive, inclusive, and responsive to community needs consistent with USAID’s Gender Equality and Female Empowerment Policy and Diversity, Equity and Inclusion Strategy. Specific design and policy decisions should reflect gender considerations and are appropriate for other underrepresented and marginalized groups and individuals. The Offeror is required to identify and outline any potential gender and social inclusion issues that might be encountered during project implementation and how these issues will be addressed. Specific interventions should be identified that will benefit women-owned and those owned by persons with disabilities enterprises and businesses and that women and disabled persons are not unduly harmed by urban development. The activity will support local governments to formulate and effectively implement their respective gender and social inclusion plans.

https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf https://www.usaid.gov/sites/default/files/documents/1865/GenderEqualityPolicy_0.pdf https://www.usaid.gov/sites/default/files/documents/1865/GenderEqualityPolicy_0.pdf https://www.usaid.gov/who-we-are/diversity-equity-inclusion

The Philippines is classified as highly vulnerable to the impacts of climate change. This means that there is a high degree of risk arising from extreme weather events and climate-related disasters. This activity will increase the resilience of selected CDI cities to near- and long-term impacts of climate change, health pandemics and other natural disasters by building capacity for preventing or mitigating disaster/ climate and pandemic impacts, conducting post-disaster rehabilitation and recovery measures, and as appropriate, advance climate change mitigation while enhancing local economic development via green jobs. The Offerors are encouraged to integrate climate resilience and risk management measures and disaster preparedness to improve effectiveness and sustainability of Urban Connect’s efforts (USAID ADS201mal).

The Offeror will propose indicators and outcomes for each of these cross-cutting objectives.

Grants Under Contract

In meeting the technical assistance objectives, the Contractor will be expected to administer and execute multiple small grants up to a total of $1.2 million over the life of the project. The purpose of the grants under contract (GUC) component is to extend resources to local non-government organizations and entities, including academic institutions, private sector organizations, civil society organizations, and other private enterprises whose participation is deemed crucial in achieving project goals and objectives. The GUC may be used in any of the, or across all components of Urban Connect, and could include a wide array of technical assistance activities, including but not limited to technical studies, capacity building, coalition building, reform advocacy, public outreach, and policy development. For example, as part of the performance of Sub-objective 2c, the Contractor may provide a grant to an organization with proven track record in building LGU health leadership and governance capacity and/or well-versed on health issues especially family planning, adolescent reproductive health (ARH) and TB, and social determinants on health.

GUC activities are also a potential source of technological innovations that could help improve project outcomes. Additionally, grant recipients could help build networks and linkages among diverse actors and stakeholders of Urban Connect. The Contractor will work with USAID in establishing the selection criteria for the grants and approval of the grant recipients.

Other USAID Activities in CDI Partner Cities

As CDI is a whole-of-Mission approach, Offerors should be cognizant of existing USAID Activities being implemented in partner cities and should target complementary interventions and avoid duplication. These include, but may not be limited, to the following: Cities for Enhanced Accountability, Governance and Engagement (CHANGE), Climate Resilient Cities, Safe Water, Clean Cities, Blue Ocean (CCBO), Energy Secure Philippines (ESP), Safe Water, Science, Technology, Research and Innovation for Development (STRIDE), Opportunity 2.0, YouthWorks PH, ABC+ (Advancing Basic Education in the Philippines), Family Planning and Maternal and Neonatal Health Innovations and Capacity Building Platforms (ReachHealth), and RenewHealth: Expanding Access to Community-Based Drug Rehabilitation Program. Brief descriptions of these activities are provided in Annex A of this SOO.

4.b. Program Support

The Contractor will provide program support services to facilitate coordination and monitoring/learning of USAID activities in the partner cities covering the activities below:

4.b.1: Provide program and coordination support for USAID in pursuit of CDI objectives

As USAID’s lead CDI activity, Urban Connect will perform a coordinating role between USAID and local partners. The Contractor will appoint a CDI coordinator for each partner-city who will serve as the main point of contact for CDI matters, act as a liaison between the local stakeholders and USAID (and its activities) and manage a schedule of events for USAID. The Contractor will facilitate monitoring and representation visits of USAID and other U.S. Government (USG) officials and staff, such as provision or arrangement of local transportation, hotel and accommodation reservations, local security arrangements when necessary, and setting up appointments with local stakeholders in CDI sites. The Contractor will also provide administrative support to USAID/Philippines staff in organizing meetings, workshops, and high-level events with city officials and other local stakeholders in CDI sites. This will include venue arrangements and secretarial support and documentation assistance.

4.b.2: Supporting Collaboration, Learning and Adapting (CLA) activities in CDI

The Contractor will develop and implement a Collaborating, Learning and Adapting (CLA) plan for the Urban Connect activity and CDI approach as a whole. The CLA plan must demonstrate the extent to which collaborating, learning, and adapting will be integrated in activity/project implementation to better achieve outcomes and results. The plan must articulate how CLA principles and practices will be carried out throughout the life of the project, including involvement of stakeholders, timing and goals of pause-and-reflect sessions, and how the project will incorporate learnings in CDI. The Offeror may refer to https://usaidlearninglab.org/cla-toolkit for additional guidance. While the CLA initiatives envisioned will address particular collaboration, learning and adapting challenges and opportunities of both Urban Connect and CDI, synergies and complementation with the on-going CLAimDev Activity will be explored.

To optimize investments in each sector, and to create synergy among the different activities being implemented in CDI sites, a coordinated approach to CLA must be implemented. These include:

a. Leading the organization of annual or semi-annual Mission-wide CLA dialogues which bring together USAID and implementing partners who are active in CDI sites to share information. These meetings can be organized around key themes that reflect the most pressing challenges or issues, or as a venue to share findings from studies or reports generated by USAID activities. This can be in collaboration with the Mission CLA for Improved Development (CLAImDev) Activity.

b. Leading the organization of an annual conference that brings together USAID, CDI partners (local government units, national government agencies, the private sector, academia, civil society, and others such as the international development community) to share their experiences more broadly, and to provide strategic guidance on the https://usaidlearninglab.org/cla-toolkit https://usaidlearninglab.org/cla-toolkit implementation of activities under the different scope of objectives of Urban Connect.

This can tie into annual implementation plan development for Urban Connect.

The Contractor will also develop and implement a CDI Information and Communications Plan (ICP), nested under the Branding and Marking Plan highlighting CDI as a whole-of-government approach to development in the partner cities. This will include production of promotional and information materials, such as pamphlets, brochures, videos, and mainstream and social media outreach activities for each partner city, as well as materials that communicate CDI-wide information on activities, outputs and impact. This includes a semi-annual or quarterly newsletter to highlight CDI events and activities to be disseminated to local and national stakeholders. This may also include arranging press coverage for USAID or Embassy-related events.

Annex A. Description of Relevant USAID Activities

Cities for Enhanced Accountability, Governance and Engagement (CHANGE) Implementation Period: July 2021 – June 2026 Implementing Partner: International City/County Management Association (ICMA) Geographic scope: All CDI cities

The goal of CHANGE is to support strengthened democratic governance in the Philippines by making local governance more responsive. In doing so, CHANGE will contribute to the Indo- Pacific framework by promoting sound, just, and responsive governance; and fostering the capacity of governments, civil society, and the private sector to make informed decisions about their choice of approaches and partners. CHANGE will seek to achieve more responsive local governance in key secondary cities of the Philippines through three objectives, namely: 1) strengthen the enabling environment for decentralization; 2) enhance service delivery capacity, legitimacy, transparency and accountability of participating local governments; and 3) empower citizens by increasing their participation in and oversight of local governance processes in ways that government both approves and support.

Climate Resilient Cities Implementation Period: October 2021 – October 2026 Implementing Partner: Catholic Relief Services Geographic scope: Cities of Batangas, Borongan, Cotabato, Iloilo, Legazpi, and Zamboanga

The five-year Climate Resilient Cities project will help cities in the Philippines adapt to, mitigate, and endure the impacts of climate change by increasing their access to climate financing and tools to build resilience. Through this project, USAID will support local government units and other stakeholders to better understand, use, and disseminate climate information to local communities. The project will also help cities and non-governmental organizations access climate financing to increase community resilience and contribute to communities’ economic and social development, as well as support natural climate solutions that increase cities’ resilience to climate change impacts. The Climate Resilient Cities project supports the Philippine government’s National Climate Change Action Plan, Nationally Determined Contributions, and National Climate Change and Disaster Risk Management Roadmap, and advances the U.S. government’s goal of tackling the climate crisis around the world. Climate Resilient Cities will also receive support from the government of the Republic of Korea, through the Korea International Cooperation Agency, as part of a joint partnership between the U.S. and Korean governments.

Safe Water Implementation Period: December 2019 - December 2024 Implementing Partner: DAI Global, LLC Geographic scope: Palawan and Puerto Princesa, Negros Occidental and Bacolod City, Sarangani and General Santos City

The Philippines faces water security challenges that include growing population, unsustainable land use, and severely deficient wastewater management. At the center of these challenges are the need for adequate and dependable supply of clean drinking water, elimination of open defecation in rural and poor communities, increased access to safely managed sanitation services, and sustainable water resources. With the threat of diseases like COVID-19, there will be greater demand for sustainable water supply, hygiene, and sanitation services in homes and other critical facilities and establishments nationwide. The Philippines’ vulnerability to climate change will make water security even more challenging in the future as drought, typhoons, or sea level rise threaten the state of the country’s watersheds, sustainability of water resources, and integrity of water and sanitation systems. Working with the Government of the Philippines, Safe Water is a five-year initiative that seeks to improve water security for water-stressed communities through increased access to water supply and sanitation services, more sustainably managed water resources, and a stronger enabling environment. After five years, local government units, water service providers, and watershed councils in the selected areas will have the information, incentives, and partnerships to identify and address barriers to a water-secure future—yielding life-saving gains in access to water supply and sanitation services for unserved and underserved communities in the Philippines.

Clean Cities, Blue Ocean (CCBO) Implementation Period: August 2019 - August 2024 Implementing Partner: Tetra Tech Geographic scope: Luzon (Batangas City and Puerto Princesa City), National Capital Region (Las Pinas City, Manila City, Paranaque City, Pasig City), Visayas (Iloilo City)

The Philippines is among the largest contributors to global ocean plastic pollution. The country generates an estimated 2.7 million tons of plastic waste each year, with approximately 20% ending up in the ocean. To address these challenges, USAID’s (CCBO) project is seeking to develop, test, and implement new models that promote the 3Rs (reduce, reuse, recycling and enhance solid waste management (SWM); facilitate partnerships and investment around key needs, such as infrastructure; and strengthen local systems to build the Philippines’ resiliency and self-reliance. CCBO is piloting solutions to stop the flow of plastic pollution to the waters within and surrounding the country, including Manila Bay and the Philippine, Sulu, Celebes, and West Philippine Sea. The project is working with partners to design and implement holistic strategies that address each step in the waste value chain—from production to its end use— prioritizing the most inclusive, economically viable, and environmentally sustainable solutions.

Energy Secure Philippines (ESP) Implementation Period: November 2020- November 2025 Implementing Partner: RTI International Geographic scope: Nationwide and select areas such as Luzon (Batangas City), Visayas (Tagbilaran City), Mindanao (General Santos City) and two ecozones ESP supports the Philippine Department of Energy’s (DOE) Energy Sector Strategic Directions covering the period 2017 to 2040, the core of which are: ensuring energy security, expanding energy access, and promoting a low-carbon future with and through multi-stakeholder support and engagement. The Activity aims to help mobilize at least $750 million of private investments into the energy sector and at least 500 MW of additional electricity generating capacity reach financial closure. Towards this goal, the activity is partnering with the Government of Philippines and the private sector to achieve these key objectives: (1) improve the performance of energy utilities. USAID’s ESP will partner with select electric distribution utilities to improve their operational performance against existing standards, as well as their financial viability and strengthen resilience against natural or human-induced shocks and stresses; (2) increase the deployment of advanced energy sources and systems. Specifically, interventions would include support in the implementation of key policies that would advance the deployment of renewable energy, promote energy efficiency, smart technologies and physical and cybersecurity capabilities; and (3) enhance competition in the power sector in order that more consumers would benefit from reasonably-priced electricity.

Science, Technology, Research and Innovation for Development (STRIDE) Implementation Period: June 2013 – July 2022 Implementing Partner: RTI International Geographic scope: Nationwide, with a particular focus in Cities Development Initiative sites-- Batangas, Cagayan de Oro, Iloilo, Puerto Princesa, Tagbilaran, Zamboanga

USAID launched STRIDE to strengthen the Philippines’ capacity for innovation-led, inclusive economic growth. The project focuses on disciplines that contribute to high-growth sectors, including electronics, chemical industries, alternative energy, agribusiness and information technology, with cross-cutting themes of manufacturing and new product development. STRIDE is creating a dynamic network of researchers in universities and industry who continuously innovate; entrepreneurs and investors who turn discoveries into products and companies; and a government supportive of initiatives that enable these partnerships to flourish. Since 2013, STRIDE has established working partnerships with over 200 industry partners, 110 Philippine academic institutions and 25 U.S. universities It has awarded 68 research grants valued at over $5 million, 57 scholarships to Filipinos to study in U.S. universities; provided advanced technical training to scientists and researchers; brought in 34 U.S. visiting professors to the Philippines;

and established knowledge and technology transfer offices and career centers in 40 universities in the Philippines.

Opportunity 2.0 Implementation Period: March 2020 – February 2025 Implementing Partner: Education Development Center (EDC) Geographic scope: Quezon City; Valenzuela City; Angeles City; Legazpi City; Cagayan de Oro;

Davao; Zamboanga City; Isabela City; Cotabato; General Santos; Tagbilaran and Cebu (TBC)

Over three million Filipinos aged 16-24 are currently not enrolled in school, not gainfully employed, or have not finished college or post-secondary education. More than half of these are in the bottom 30% based on their per capita income and are therefore doubly disadvantaged by their lack of education and their poverty. While the Philippine government, through the Department of Education and the Technical Education and Skills Development Authority have made significant investments to improve this situation with the development of the Alternative Learning System and a focus on creating a “21st century workforce,” much progress needs to be made in curriculum development; professional development of teachers and trainers; access to learning resources; changing the perception of out-of-school youth; connecting education and the youth to industry; and creating networks at the local level to address youth needs. “Opportunity 2.0: Second-chance Opportunities for Out-of-school Youth” will strengthen national and local systems which help youth return to formal schooling, seek employment, or become entrepreneurs by strengthening links between education institutions, markets, local communities, and the various programs that support them. The activity will provide over 180,000 youth with the skills and opportunities to improve their education, employment and livelihood outcomes across the Philippines.

YouthWorks PH Implementation Period: June 2018 – May 2023 Implementing Partner: Philippine Business for Education Geographic scope: Cagayan de Oro, Davao, Zamboanga, General Santos, Iloilo, Cebu and Metro Manila

With over 50 percent of its population under 30 years of age, the Philippine “youth bulge" is both a tremendous challenge and a great opportunity. However, despite the rapid gains in the Philippine economy, one in four young people aged 15-24 are not in education, employment or training, with youth accounting for almost half of the unemployed. Additionally, more than a third of the country's unemployed youth having at least some level of college education. This indicates a major mismatch between education and job opportunities. YouthWorks PH is a five-year partnership between USAID and the Philippine Business for Education that engages and mobilizes the private sector to address the education needs of youth, as well as the skill requirements of employers. This partnership will improve access to training and employment opportunities for at least 40,000 youth through an innovative work-based training approach. This approach allows youth to earn a competency certificate from a university or training institute, while working in partner companies.

ABC+ (Advancing Basic Education in the Philippines) Implementation Period: July 2019 – June 2024 Implementing Partner: RTI International Geographic scope: (Region 5) Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate, Sorsogon, Naga City, (Region 6) Aklan, Antique, Capiz, Guimaras, Iloilo, Negros Occidental, Bacolod City, Iloilo City, (BARMM) Maguindanao

Improving education outcomes for all children and youth remains a core challenge for the Philippine basic education system. At the root of the problem are the poor reading and math skills of many Filipino students, particularly in the early grades. The ABC+ project helps the Department of Education and education stakeholders to address the interconnected factors that contribute to low education outcomes in the poorest performing areas of the Philippines. This project identifies innovative and sustainable ideas on how to address the continuing challenges in literacy, numeracy and socio-emotional learning for children in the Philippines, with a particular focus on systems strengthening.

Family Planning and Maternal and Neonatal Health Innovations and Capacity Building Platforms (ReachHealth) Implementation Period: October 2018 – February 2023

Implementing Partners: RTI International in partnership with Johns Hopkins Center for Communications Programs and Duke University Global Health Innovation Center Geographic scope: (Provinces) Agusan del Norte, Albay, Batangas, Bohol, Bukidnon, Camarines Sur, Cavite, Cebu, Iloilo, Laguna, Misamis Oriental, Negros Occidental, Nueva Ecija, Pampanga, Rizal, South Cotabato, Zamboanga del Norte and Zamboanga del Sur; (Cities) Angeles, Bacolod, Butuan, Cagayan de Oro, Cebu, Caloocan, Davao, General Santos, Iloilo, Lapu-Lapu, Mandaue, Manila, Naga and Zamboaga

ReachHealth strengthens and improves access to critical health services for Filipino families.

The project aids Philippine communities to reduce unmet need for family planning services and decrease teen pregnancy and newborn morbidity and mortality. To address these challenges, ReachHealth improves individual, household and community knowledge and behaviors of family planning and maternal and neonatal health (FP/MNH); increases access to comprehensive quality care, including lifesaving maternal and newborn services, and increases the capacity of providers to deliver this care; and strengthens functionality of health systems across governance, finance, human resources, commodity availability and data. Additionally, ReachHealth generates demand for FP/MNH services and helps women, men and adolescents overcome gender barriers. The project supports Philippine counterparts – primarily the Department of Health, Commission on Population and Development, Philippine Health Insurance Corporation, civil society, and the private sector – to identify and respond to local root causes of poor FP/MNH outcomes.

RenewHealth: Expanding Access to Community-Based Drug Rehabilitation Program Implementation Period: May 2019 – May 2024 Implementing Partner: University Research Company Geographic Scope: National-level and eight regions- National Capital Region, Central Luzon, MIMAROPA (Mindoro, Marinduque, Romblon and Palawan), Bicol, Eastern Visayas, Northern Mindanao, SOCCSKSARGEN (South Cotabato, Sarangani, General Santos and Koronadal)

In the Philippines, drug use is a national issue that impacts the health, social, and economic well-being of Filipinos. USAID’s RenewHealth: Expanding Access to Community-Based Drug Rehabilitation project works in partnership with Philippine government agencies to improve the quality of community-based rehabilitation and recovery services (CBDR) and ultimately reduce drug dependence in the Philippines. The project offers proven public health approaches to CBDR services that persons who use drugs and their families can access without fear or prejudice. Working with Philippine government and local public and private stakeholders, the project will enable healthy behaviors and demand for CBDR services; enhance the quality of patient centered and compassionate CBDR services, and strengthen the policies and systems for sustainable CBDR service delivery.