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The country has adopted a decentralized political system of government which was introduced in 1996 following parliament’s approval of the Organic Law on Provincial and Local Level (OLPG&LLG). The decentralization reforms led to the creation of National Government, Provincial Governments and Local Governments.

Prompted by this development, programs and initiatives were designed, first for the district through the District Development Program (DDP) evolving into the District Services Improvement Program (DSIP); for the Province through the Provincial Services Improvement Program; and lately for the Local Governments through the Local Level Government Services Improvement Program (LLGSIP).

Note: Exceptions are for NCD and Bougainville. The processes are the same but according to their equivalent structure.

Objectives of the PSIP, DSIP and LLGSIP

The primary objective of the PSIP, DSIP and LLGSIP is to provide minimum service delivery standards through re-establishment of basic infrastructure and facilities, including socio-economic activities for essential services such as health, education, law and justice, quality water and sanitation, transport (air, sea and land), communication and rural electrification.

Principles of the PSIP, DSIP and LLGSIP

The key principles of the PSIP, DSIP and LLGSIP are: greater ownership, affordability, value-adding, sustainability, leadership, and optimum resource utilization. Underpinning the key principles is the Government’s Policy of “Achieving National Equity in Development through the Strengthening of Basic Service Infrastructure". The theme of the policy encapsulates the spirit of the PSIP, DSIP and LLGSIP and is directly related to the Ten Guiding Principles of the Medium Term Development Plan (MTDP 2010-2015), DSP (2010-2030) and Vision 2050.

The key features of PSIP, DSIP and LLGSIP are:

(a)              Priorities of Province, District and LLG five (5) Year Development Plan: SIP funding must target the priorities of current 5 year development plan.

(b)              Sweat Equity: Local communities are important partners of the PSIP, DSIP and LLGSIP therefore should participate directly in the implementation of the projects and programs.

(c)              Driven by the Provincial Management Team (PMT) and District Management Team (DMT). PMT and DMT to manage the PSIP, DSIP and LLGSIP in their respective Provinces and Districts, ensuring that Provincial and Local Level Governments and Administrations can sustain and resource any future recurrent and development financing needs.

(d)              Involvement by Members of Parliament and Presidents of Local Level Governments. Members of Parliament and Presidents of LLG provide Political Leadership and facilitate initiatives to address funding and other (capacity, policy, etc) gaps and constraints.

(e)              Partnership among All Stakeholders. The program components will be delivered using existing systems and processes of the Government, encouraging public-private partnerships (PPP), agreements with development partners and other forms of external support aligned with Government’s initiatives.

(f)               Value for money: PSIP, DSIP and LLGSIP projects shall follow all required procurement procedures and ensure they receive good value for goods and services.

(g)     Value added and Economies of scale: The focus shall be on impact projects, encouraging expansions of the value added chain, and on economies of scale.

SIP Reporting Process

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