DAR IARCDSP Microfinance Project
Social Enterprise Development Partnerships, Inc. (SEDPI)
Logical Framework
| Intervention Logic | Objectively Verifiable Indicators | Sources of Verification | Important Assumptions |
|---|---|---|---|
| Development Goal (Impact): Contribute to local economic development and inclusive growth through provision of microfinance services to farmers in 35 Agrarian Reform Communities (ARCs) in 26 municipalities located in the provinces of Sarangani, Sultan Kudarat in Region XII, and autonomous provinces of Maguindanao and Lanao del Sur in BARMM | § Access to financial services among 5,000 ARB households § Increased participation among 1,500 ARB households in the market § Access to agricultural services among 3,000 ARB households § Increase in real income among 2,500 ARB households § Amount of loan portfolio § Amount of savings mobilized § Increase in ARBO revenues | § ARBOs/FOs annual reports § ARBOs/FOs impact assessment survey/interview with members/clients § Cash Flow Analysis in Loan Application Form § ARBOs/FOs baseline organizational assessment § Agrarian Reform Community Development Plan (ARCDP) | § Strong commitment and capability of ARBOs/FOs to provide financial and agricultural products and services to ARBs § ARBs consider ARBOs as viable source of financial and agricultural products and services § Strong partnership among ARBOs in the ARC exists § Economic and political stability exists |
| Intervention Logic | Objectively Verifiable Indicators | Sources of Verification | Important Assumptions |
|---|---|---|---|
| Project Purpose (Outcome): To improve the capacity of 35 Agrarian Reform Beneficiary Organizations (ARBOs) to provide economic empowerment to farmers in 35 ARCs
| § 35 ARBOs/FOs with assessment system in place | § Lead ARBOs/FOs monthly organizational assessment tool § Lead ARBOs/FOs annual organizational assessment tool | § Commitment and capacity of ARBOs/FOs to implement organizational assessment tool |
| § 35 ARBOs/FOs with sustainable business plans submitted and approved | § ARBO/FO business plan document § ARBO/FO business plan approval memo/document § Lead ARBOs/FOs organizational assessment report | § Commitment and capacity of ARBOs/FOs to prepare business plans § Availability of all data and documents needed for the preparation of the business plans | |
| 35 ARBOs/FOs with: § portfolio at risk within industry standard | § Portfolio at risk report § Audited financial statements § Interim financial statements § Minutes of BOD meeting § Performance assessment of board & management staff § Written operations manual for re-lending schemes and/or social microfinance instruments | § Readiness of ARBOs/FOs to receive endowment of revolving funds and/or social microfinance instruments § External audit § Institutional buy in and support from top management on proposed policy changes or new policies § Timely delivery of endowment | |
| 35 ARBOs/FOs with: § increased income | § Lead ARBOs/FOs financial statements § COOP-PESOS monitoring tool § Written operations manual § Monitoring and evaluation tool and forms § Monthly monitoring report § Annual monitoring report | § ARBOs/FOs willing to participate in the capacity building interventions to improve their capability § ARBOs/FOs have adequate knowledge and skills to translate capability interventions to operational activities | |
| § At least 12 ARBOs/FOs endowed with additional revolving funds and social microfinance instruments | § ARBO/FO financial statement § Monthly monitoring report § Annual monitoring report | § Compliance of ARBOs/FOs to all requirements for the endowment of funds § Readiness of ARBOs/FOs to take on endowment funds § Availability of funds for endowment | |
| § At least 12 ARBOs/FOs implementing innovative product/s | § ARBOs/FOs operations report § ARBOs/FOs financial statement | § Innovative products and services are market-driven and not supply-led § Systems and procedures in place for innovative product/s implementation § Technology is available (for mobile banking) § Commitment and capacity of ARBOs/FOs to implement innovative product/s |
| Intervention Logic | Objectively Verifiable Indicators | Sources of Verification | Important Assumptions |
|---|---|---|---|
| Outputs/Results: 1. ARBOs/FOs have a common assessment and self-assessment tool | 1.1. 1 deep assessment of at least 70 ARBOs/FOs situation has been conducted 1.2. 1 common model of assessment and self-assessment tool is finalized and tested on the eligible ARBOs/FOs | § Organizational appraisal tool description/manual § Organizational appraisal report | § Availability of respondents and documents needed for the organizational appraisal/assessment § No calamities and security risks |
| 2. ARBOs/FOs have business development plans and project proposals | 2.1. At least 70 ARBOs/FOs staff are trained on the preparation of business plans and project proposals 2.2. At least 35 ARBOs/FOs submitted sustainable business plan or project proposals and get final approval | § Training attendance sheets § Training reports § Training evaluations § Photo documentation § Project proposals and/or business plans for 35 lead ARBOs/FOs § Approval memo for business plan submitted | § Willingness of ARBOs/FOs to participate in the conduct of trainings § Availability of data and documents for the creation of project proposals and/or business plans § No calamities and security risks |
| 3. ARBOs/FOs are endowed with revolving funds and/or social finance instruments | 3.1. At least 140 ARBOs/FOs staff are coached on the principles of loan and financial management of revolving funds and social finance products 3.2. At least 4 workshops in different provinces should be held in order to stimulate an awareness raising campaign on the utility of microcredit self-managed schemes for ARBOs/FOs 3.3. At least 35 ARBOs/FOs are qualified to become bankable organizations | § Operations Manual Section 4.2. Loan Application Form and Process (C.1.A.) § Operations Manual Annex 1. Agri-Input and Agri-Support Business Process Flows (C.1.B.) § Board Resolution on Past Due and PAR (C.1.C.) § Delinquency Reasons and Possible Solutions (C.1.D.) § Client Folders (C.1.E.) § Operations Manual Section 6. CBU and Savings (C.1.G.) § Operations Manual Section 7 SWEPP (C.1.H.) § Printed CBU, Savings, SWEPP Forms – Form Agreement Memo (C.1.I.) § Savings Brand Name (C.1.J.) § Workshop on Fundamentals and Principles of Microfinance Pre-test (C.2.A) and Post-test (C.2.B) § Documentation of ARBO bank account passbook (C.2.C.; C.4.F.) § Board Resolution on VMO and loan eligibility (C.2.D.; C.3.F.; C.4.H.) § MOA with other ARBOs (C.2.E.; C.3.G.) § Number of Savers (C.2.F.) and Amount of Savings (C.2.G.) § Workshop on Character and Capacity Based Lending Pre-test and Post-test (C.2.H. and C.2.I.) § Number of Loan Application Forms Filled Out (C.2.J.) § Printed loan application forms – Form Agreement Memo (C.2.K.) § Workshop on Financial Product Design and Development Pre-test and Post-test (C.2.L. and C.2.M.) § Loan Product Design (C.2.N.; C.3.D.) § Savings Product Design (C.2.O.; C.3.E.) § Product Brand Names (C.2.P.) § Workshop on Delinquency Management Pre-test and Post-test (C.2.Q. and C.2.R.) § Schedule of collection and persons who will collect – Report of TAMA on PD and DQ (TAMA 2) (C.2.S.) § Board resolution on past due and PAR (C.2.T.) § Delinquency Reasons and Possible Solutions Worksheet (C.2.U.) § Operations Manual Section 1.4.1 – Organizational Chart (C.2.V.; C.3.H.) § Operations Manual Section 1.4.2 – Roles and Responsibilities (C.2.W.; C.3.I.) § Guidelines Development (C.3.A.) § Savings Incentives (Amount) – Memo (C.3.B.) § Operationalization (Yes/No) – Savings used to fund operations? (C.3.C.) § Operations Manual Annex 1. Business Process Flows (C.3.J.) § Business Model Overview Worksheets (C.3.K.) § Agri-input Finance Business Overview Worksheets (C.3.L.) § Payment Scheme Worksheets (C.3.M.) § Guarantees for Loan Worksheets (C.3.N.) § Farm Machineries Rental Service Worksheets (C.3.O.) § Hauling Rental Service Overview Worksheets (C.3.P.) § Agri-Produce Trading Business Worksheets (C.3.Q.) § Agri-Support Financing Business Overview Worksheets (C.3.R.) § Adminstration and Procedures: Loan Application Worksheets (C.3.S.) § Administration and Procedures: Loan Disbursement Worksheets (C.3.T.) § Field and Farm Visits Worksheets (C.3.U.) § Inventory Management Worksheets (C.3.V.) § Administration and Procedures: Farm Machineries Rental and Service Worksheets (C.3.W.) § Delinquency Management Worksheets (C.3.X.) § Budgeting for Farmers Worksheets (C.3.Y.) § Loans for Farmers Worksheets (C.3.Z.) § SEDPI Data Collection LFI criteria (C.4.A.) § Presentation of LFI criteria, strategies to avail – TAMA 8 report (C.4.B.) § Negotiation with LBP (C.4.C.) § Negotiation with DBP (C.4.D.) § Negotiation with SDFI (C.4.E.) § Internal Control Measure Assessment Rating (C.4.I.) § Interim Financial Statement (C.4.J.) § Coaching and workshop attendance sheets § Coaching and workshop reports § Workshop evaluations § Photo documentation § Bankability checklist | § Willingness of ARBO/FO officers and members to participate in the coaching and workshop sessions § Availability of financial institutions in the area of the ARBOs/FOs § Information on financial institution’s bankability requirements is available § No calamities and security risks |
| 4. ARBOs/FOs are trained with microfinance management tools and monitoring & evaluation systems | 4.1. At least 70 staff in ARBOs/FOs are trained on operative business management and how to deal with electronic tools for operative loan management to ARBs 4.2. At least 70 staff in ARBOs/FOs are trained in M&E systems 4.3. At least 20 ARBOs are endowed with advanced loan management tools (software and hardware) as well as M&E instruments 4.4. At least one (1) Policies, Systems, and Procedures (PSP) on microfinance product developed and implemented in 35 ARBOs/FOs | § Training on accounting and bookkeeping system pre-test and post-test (D.1.A and D.1.B) § Printed accounting forms with form agreement memo (D.1.C) § Bookkeeping: agri-input financing computer-based learning worksheet (D.1.D) § Bookkeeping: agri-support financing computer-based learning worksheet (D.1.E) § Bookkeeping: CBU and savings computer-based learning worksheet (D.1.F) § Bookkeeping: hauling services computer-based learning worksheet (D.1.G) § Bookkeeping: farm machineries rental or service computer-based learning worksheet (D.1.H) § Bookkeeping: agri-produce trading computer-based learning worksheet (D.1.I) § Training on risk management, internal control and audit pre-test and post-test (D.1.J and D.1.K) § Section 1.4.1. of operations manual – organizational chart (D.1.L) § Section 1.4.1. of operations manual – roles and responsibilities (D.1.M) § Internal Control Measure Assessment (D.1.N) § Training on innovative software instruments for loan delivery management pre-test and post-test (D.1.O and D.1.P) § Receipt of laptops and installation of ABSS software with laptop agreement memo (D.1.Q and D.4.A) § Customized Policies, Systems, and Procedures (PSP) for loan delivery with operations manual agreement memo (D.1.R) § Information system: client folder and reports computer-based learning worksheet (D.1.S) § Training on monitoring and evaluation techniques and systems pre-test and post-test (D.2.A and D.2.B) § Progress out of poverty survey (D.2.C and D.4.C) § Monthly monitoring report (D.2.D and D.4.D) § Section 5 of operations manual – monitoring (D.2.E) § Training on Islamic finance pre-test and post-test (D.3.A and D.3.B) § Islamic finance computer-based learning worksheet (D.3.C) § Training on micro savings pre-test and post-test (D.3.D and D.3.E) § CBU and savings overview computer-based learning worksheet (D.3.F) § Training on micro insurance pre-test and post-test (D.3.G and D.3.H) § SWEPP computer-based learning worksheet (D.3.I) § Training on mobile banking pre-test and post-test (D.3.J and D.3.K) § Mobile banking computer-based learning worksheet (D.3.L) § Training on guarantee fund pre-test and post-test (D.3.M and D.3.N) § Training on innovative start-up capital (fair trade model) pre-test and post-test (D.3.O and D.3.P) § Printed chart of accounts (D.4.B) § Annual monitoring tool (D.4.E) § Training attendance sheets § Training evaluations § Photo documentation | § ARBOs/FOs have computers § ARBO/FO officers or management staff are computer literate § No calamities and security risks |
| 5. ARBOs/FOs have increased their loan portfolio | 5.1. At least 12 ARBOs/FOs received additional loans from the Contractor 5.2. At least 23 ARBOs are endowed with revolving funds and/or social finance instruments and at least 12 ARBOs are endowed with social finance instruments in addition to the existing revolving funds 5.3. At least 85% of total Contracting Authority budget allocation for inputs facilitated to 35 ARBOs/FOs | § Audited Financial Statements (E.2.A.; E.2.G.) § Amount of Existing Revolving Funds (Loan Capital) (E.2.B.; E.2.H.) § Loan documentation – loan request/application; loan memo/acknowledgement of receipt; loan agreement; promissory note (E.2.C.; E.2.I.) § Savings incentive memo/acknowledgement of receipt (E.2.D.; E.2.J.) § Interim financial statements and reports § Supporting documents for delivery of inputs (i.e. delivery receipts, receiving report, etc.) § Photo documentation | § Availability of funds for additional loans and savings incentives to ARBOs/FOs § Approved business plans § ARBOs/FOs meet requirements for loans; and/or savings incentives § Successful delivery of inputs from Contracting Authority § No calamities and security risks |
| 6. Innovative microfinance products and services are introduced in ARBOs/FOs | 6.1. At least 1 innovative product is implemented and operative in at least 12 ARBOs/FOs | § Webinar on micro savings attendance sheet (F.1.A) § Webinar on micro insurance attendance sheet (F.1.B) § Webinar on Islamic finance attendance sheet (F.1.C) § Webinar on mobile banking attendance sheet (F.1.D) § Webinar on guarantee funds attendance sheet (F.1.E) § Webinar on start-up capital (fair trade model) attendance sheet (F.1.F) § Section 6 of operations manual – capital build-up and savings (F.2.A) § Number of savers and amount of savings on monthly monitoring report (F.2.B and F.2.C) § Section 7 of operations manual – social welfare protection program (F.2.D) § SWEPP MOA (F.2.E) § Digital finance survey (F.2.F) § G-Cash QR code kit agreement memo (F.2.G) § Training evaluations § Photo documentation | § Timely development and implementation of innovative products to ARBOs/FOs § No external factors (i.e. calamities, macro-economic situations, etc.) will affect the implementation of innovative products |
| Intervention Logic | Inputs | Costs | Important Assumptions |
|---|---|---|---|
| Activities: 1.1. Consultation meetings in 35 IARCDSP covered ARBOs/FOs 1.2. On demand support to the ITA for the initial analysis and appraisal of each ARBO/FO 1.3. Locally-based in-field assessment of each ARBO 1.4. Design and testing of the assessment tool 1.5. Validation of the model | § Researchers § Research/assessment tool § Transportation § Communication § Supplies § Meals § Consultation venue | PhP1,730,500.00 | § Commitment of ARBO/FO members to participate in consultation meetings § Willingness of ARBOs/FOs to provide information needed for the assessment § No calamities and security risks |
| 2.1. Series of local consultations with 35 ARBOs/FOs 2.2. Train ARBOs/FOs on preparation and submission of business plan and project proposals according to the training principles apprehended from ITA 2.3. Field-base assistance to the ARBO/FO preparation of business plan and project proposals 2.4. Implementation of ITA recommendations for business plan and project proposals 2.5. Review and provide improvements in the rejected business plans and project proposal
| § Trainers/Facilitators § Training modules § Transportation § Communication § Supplies § Food and lodging § Consultation/training venue | PhP5,840,500.00 | § Commitment of ARBO/FO members to participate in consultation meetings and training sessions § Provision of ITA recommendations for business plan and project proposals § Availability of all needed data to craft and prepare business plans and project proposals § No calamities and security risks |
| 3.1. Extensive coaching on the principles aimed at implementing micro loan scheme and social finance instruments 3.2. A series of workshops on the thematic related to microfinance schemes for cooperatives and ARBOs should be held 3.3. Support and guidance the effective endowment of the revolving funds and the social microfinance instruments to be adopted by ARBOs/FOs 3.4. Assistance to the negotiations with financial institutions and other donors in order to make marginalized ARBOs/FOs qualified to become bankable/creditworthy | § Trainers/Facilitators § Training modules § Transportation § Communication § Supplies § Food and lodging § Coaching/training venue § List of requirements from financial institutions | PhP13,931,500.00 | § Commitment of ARBO members in attending the coaching sessions and workshops § Capacity of ARBOs to implement agreements and assignments during coaching and training sessions § Financial institutions and other donors’ willingness to negotiate with ARBOs/FOs and/or SEDPI § No calamities and security risks |
| 4.1. Training sessions on business management technics, innovative software instruments for loan delivery management (Grameen patterned and others) to ARBs and credit collection mechanisms 4.2. Training session on monitoring & evaluation technics and systems to be adopted for all the microfinance component of IARCDSP 4.3. Training session on the six microfinance products 4.4. In-field implementation of software management tools, implementation of a M&E system and their testing | § Trainers/Facilitators § Training modules § Transportation § Communication § Supplies § Food and lodging § Training/implementation venue § Hardware and software | PhP11,965,000.00 | § Commitment of ARBO/FO officers and members in attending the training sessions § ARBO/FO officers or management staff are computer literate No calamities and security risks |
| 5.1. SEDPI shall support the equity endowment process of the inputs coming from the Contracting Authority from IARCDSP program budget 5.2. Endowment of additional loans portfolio to the selected ARBOs/FOs for the purpose of managing their own revolving funds/ social finance instruments | § Trainers/Facilitators § Training modules § Transportation § Communication § Supplies § Food and lodging § Training/implementation venue § Funds | PhP5,447,500.00 | § Availability of funds for the equity endowment and additional loan portfolio § Endowment process facilitated well § No calamities and security risks |
| 6.1. Upscale and replication of the ITA training on innovative microfinance product as resulting from the conducted pilot tests namely on Islamic Finance, Credit Guarantee Funds, Entrepreneurial innovative start-ups, Micro-insurances, Micro-savings, and Internet based & mobile-phone microfinance services 6.2. Support to the effective implementation on a larger scale (multiplier effect) of the innovative products implemented and tested by ITA with pilot projects | § Trainers/Facilitators § Training modules § Transportation § Communication § Supplies § Food and lodging § Training/implementation venue § Hardware and software § Partner organizations | PhP8,230,000.00 | § All stakeholders willing to collaborate for the implementation of the innovative products § Availability of partner organizations for the replication and implementation of innovative products § Availability of inputs/feedback from ITA on results of pilot testing § No calamities and security risks |
| Pre-conditions: § Complete team for project implementation § Partnership with DAR staff in place § Partnership with ITA organization in place |