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PHILIPPINES
Multi‑Stakeholder Monitoring Body for 
Infrastructure Investments

Overview

Level of Government: National

Lead Institution: Department of the Interior and Local Government

Challenge Area: Anti-Corruption

 


Description

Reform Description

The Third-Party Monitoring (TPM) Initiative will provide the Government of the Philippines with a practical and meaningful mechanism for engaging public participation in infrastructure development and local governance, particularly in response to the increased public investments for diverse community-based needs.

From 2020 to 2024, the National Government (NG) increased public spending for local infrastructure to address critical development priorities in collaboration with local government units (LGUs). A total of ₱132 billion (approximately $2.32 billion USD) was allocated during this period to ensure that projects reach communities and deliver outcomes, especially for the most impoverished, vulnerable, and disadvantaged sectors.

In the 2024 national budget, ₱1.42 trillion (approximately $24.99 billion USD) was allocated for infrastructure development—an amount representing 5.3% of the country’s GDP.

In support of these investments, the TPM Initiative will operationalize a tripartite mechanism among the NG, LGUs, and civil society organizations (CSOs). This mechanism will promote accountability at the community level and amplify ‘voice from below’ to ensure that infrastructure investments are responsive to local contexts and genuinely address community needs.

Through TPM, CSOs will no longer be confined to token participation. They will undergo a formal accreditation process and will be selected through a competitive and transparent procurement procedure to ensure integrity, fairness, and quality of engagement. Once selected, CSOs will be oriented on TPM’s objectives, design, and expected outcomes, establishing their role not merely as implementers but as co-owners of the initiative.

Importantly, the tools and monitoring frameworks to be used under TPM will be co-created with CSOs, ensuring both technical rigor and grassroots relevance. These will not be externally imposed checklists, but instruments developed with and for the community. To support their fieldwork, CSOs will be provided with funds to cover training, operational logistics, and documentation. Once data is gathered, CSOs will also assist the government in communicating and popularizing TPM findings—ensuring that results are accessible not only to decision-makers but also to the communities affected by these projects.

Through this inclusive approach, the TPM Initiative will help institutionalize citizen participation in infrastructure governance, reinforcing transparency, accountability, and the delivery of lasting impact for all Filipinos.

Problem(s) Addressed by Reform

The TPM framework addresses longstanding governance challenges that have hindered the impact and integrity of public infrastructure projects. Despite the Philippines’ longstanding empowerment clauses in national and local policies and laws, these have been reduced to tokenism and nominal public participation.

A critical issue is the limited and often symbolic role of civil society, particularly in large-scale projects or capital-intensive public investment programs. While current policies mandate the presence of CSOs in Local Development Councils (LDCs), research indicates that CSO participation primarily focuses on ensuring compliance rather than developing the capacity to influence local and national governments. According to Medina-Guce and Galindes (2017), writing in the Philippine Journal of Public Administration, CSO roles in LDCs are often unclear, despite their legal mandate to comprise at least 25% of these Councils. CSOs are frequently sidelined during real decision-making processes, resulting in missed opportunities to mobilize local knowledge and grassroots insights while holding local governments accountable.

Another public concern is the erosion of trust between communities and government institutions. The Philippine Development Plan (PDP) 2017–2022 Midterm Update emphasizes the need to strengthen citizen participation and feedback mechanisms as part of building a high-trust society and improving public service delivery. The PDP underscores that participatory governance mechanisms are often underutilized or tokenistic, leading to weakened trust and disengagement.

TPM also aims to address persistent issues such as project implementation delays, misallocation of public funds, and the absence of a structured feedback loop from the ground up. Local projects often face inefficiencies and poor oversight, with communities having limited power to raise concerns or demand improvements.

By empowering CSOs to lead monitoring efforts beyond traditional observer engagement, TPM transforms these challenges into opportunities for citizen participation. It provides practical avenues for holding government accountable and ensuring timely, efficient, and quality delivery of local infrastructure priorities.

a. By establishing spaces for shared accountability, TPM contributes to restoring the trust of citizens and CSOs in public institutions. A fundamental expectation of TPM is the empowerment of civil society in local decision-making processes. Historically, ordinary citizens and NGOs had limited influence in shaping the construction of roads or the installation of water systems, resulting in inadequate participation in local infrastructure development. TPM has transformed this situation by involving CSOs not merely as observers but also as trained partners in local infrastructure development and governance. Under TPM, local CSOs are engaged and trained to monitor Local Government System (LGSF) projects, visiting sites, verifying progress, and gathering feedback from the local community. This hands-on, independent role empowers communities to assert their voices: they can ensure that projects align with local needs and promptly identify potential issues.

By facilitating collaboration between the government, CSOs, and local communities, TPM establishes a triangulated system of oversight. Each actor reinforces the others in pursuit of accountable, responsive, and participatory local governance. This collaborative model aligns with the fundamental principles enshrined in the Local Government Code of 1991, which envisions empowered communities, participatory decision-making, and shared responsibility in local development.

b. The TPM system assists in addressing project delays and poor quality by employing independent monitors who oversee implementation progress on behalf of the government. During the 2024 pilot TPM implementation, third-party monitors verified whether construction milestones were achieved, identified minor issues before they escalated into significant problems, and provided timely updates to the local government. Consequently, local leaders were empowered to take proactive corrective measures.

c. For many years, citizens have felt disillusioned with public service delivery due to government projects failing or being tainted by graft. TPM seeks to change this narrative by demonstrating that government embraces scrutiny and is committed to improvement. The presence of independent monitors conveys a powerful message: we have nothing to conceal; we value your trust. Each TPM report presents an objective assessment of how public funds are utilized, and this objectivity is crucial for restoring credibility. TPM reinforces the principle that transparency is not merely a value but a fundamental pillar of effective local infrastructure governance. It enables citizens to monitor financial expenditures, verify progress, and comprehend the impact of public spending. When an impartial third party verifies that a newly constructed farm road meets specifications and adheres to budgetary constraints, the community can find solace and trust that the project was not a conduit for corruption.

Relevance to OGP Values

TPM effectively aligns the principles of open government, such as transparency, accountability, and civic participation, with the everyday lives of citizens, fostering a sense of relevance and significance.

Transparency, often associated with reports and data, is rendered tangible through the TPM approach. Regular site visits and interviews conducted with local residents enable independent monitors to gather authentic and timely information regarding the implementation of public projects. This data addresses critical questions such as the timely completion of road construction and adherence to agreed-upon standards for the health center’s completion. These inquiries are no longer left to chance or unsubstantiated rumors. TPM facilitates clarity by sharing this information with both local and national leaders, as well as the broader community.

Accountability transcends mere buzzwords. Contractors and local officials are now aware that their actions are not only monitored by their superiors but also by the public. TPM reports promptly expose issues such as delays, the use of substandard materials, or gaps in service provision. This timely disclosure enables immediate action before the situation escalates.

What truly sets TPM apart is its empowering impact on citizen participation. Communities, particularly through civil society groups, are no longer merely “informed” or “consulted.” They actively participate in designing monitoring procedures and engaging in field visits and project sites. They actively engage with neighbors and raise concerns when necessary. This involvement instills a sense of ownership over local infrastructure projects.

Intended Results

TPM aims to comprehensively cover all 17 regions of the country. A total of 800 infrastructure projects, valued at ₱3.2 billion ($56.48 million USD), will undergo independent monitoring and evaluation. Sixteen CSOs, one in each region, will be designated as official third-party monitoring partners, ensuring that public participation in project oversight becomes a permanent and institutionalized aspect of local governance.

Beyond the numerical targets, the goal is to make TPM embedded in how government projects are managed and trusted. By employing standardized tools, establishing a clear policy framework, and deploying trained CSOs, TPM will transcend beyond being a pilot or one-time initiative and evolve into a regular and institutionalized process. The Department of Interior and Local Government (DILG) will assume the leadership in sustaining TPM, supported by an annual budget allocation to guarantee its continuity.

Consequently, even after the pilot phase, the practice of independent monitoring by civil society will persist in fostering a culture of transparency, accountability, and citizen engagement.

Most importantly, a discernible behavioral transformation will manifest among local communities, CSOs, and government actors. Communities will no longer perceive themselves as passive beneficiaries but as active participants with the inherent right and responsibility to monitor public expenditures. CSOs will not merely serve as watchdogs but will assume the role of trusted partners in governance.

In turn, local governments will demonstrate a heightened openness to scrutiny and feedback. This transformative shift in behavior will engender stronger collaboration, enhance project execution, and establish a more enduring culture of transparency, accountability, and citizen-led development.

Milestones

To rollout the TPM to national scale, three major steps have been agreed:

a. Standardization of the TPM

Together with the partner CSOs, DILG, through its Office of Project Development Services (OPDS) aims to complete a clear and user-friendly TPM Manual that includes the tools, templates, and policy guidelines needed to make monitoring consistent across all regions.

b. Training and Preparing Civil Society Partners

DILG-OPDS also aims to build the capacity of CSOs from all 17 regions to carry out independent monitoring in their own communities. The capacity-building component covers data-gathering, community sensing, ethics, data analytics, and report writing using the agreed tools improved by the experience from the pilot implementation.

c. Rolling Out TPM Nationwide
National rollout of the TPM rollout covers all regions of the country and expands the program coverage to include more types of Local Government Support Fund projects. Each CSO acts as a local partner, helping ensure public funds are spent properly and that the voices of communities are heard and amplified as opportunities for improvement in local infrastructure design and implementation.

Is Civil Society Involved?

Yes. CSOs have been actively involved in the process and their role will undoubtedly expand as the TPM Initiative progresses toward its full national implementation.

Currently, CSOs are collaborating closely with the DILG to co-develop the necessary monitoring standards, tools, and processes for the successful nationwide rollout.
During the 2024 pilot implementation, CSOs assumed the crucial role of third-party monitors, visiting project sites, engaging with local communities, and submitting comprehensive independent reports. This pilot phase not only served as a testing ground for the system but also effectively prepared both the government and civil society for the full implementation.

In the full rollout phase, CSOs will assume an even more prominent role, serving as independent monitors. They will receive capacity development and resources to ensure that infrastructure projects are delivered on time, meet the highest standards, and generate meaningful outcomes.

Open Government Partnership