Millennium Development Goals Fund (MDGF)

The project Provides financing for 4th to 6th class municipalities for the implementation of their MDG projects, cognizant of the funding constraints of lower-income LGUs in meaningfully attaining their own MDG targets. MDGF is a separate lending facility initiated by the Department of Finance (DOF) though its Millennium Development Fund Office (MDFO) and DILG to help low income LGUs fast track the attainment of the MDG at the local level.

It aims to catalyze LGU initiatives to rapidly address their social development program focusing on poverty, hunger, disease, illiteracy, environmental degradation, slum upgrade, and gender discrimination. It likewise assists LGUs in expanding and upgrading their social infrastructures to provide more quality MDG-supportive services to their constituents.

The project has two(2) components, namely Investment Support and Institutional Capacity-Building. Investment Support refers to the provision of capital investment requirements of the proposed projects and financed from the 500M second Generation Fund (SGF) being administered by MDFO-DOF that will cover the cost for civil work, procurement of equipment/goods and other services on credit basis based on the Net Borrowing Capacity (NBC) of the LGU. Institutional Capacity Building refers to the provision of technical assistance to eligible LGUs that will enhance their capacity to implement and sustain their projects.

In helping out these LGUs, the project contributes to the empowerment of low-income LGUs to plan, implement and manage their development projects, and at the same time provides impetus for these LGUs to be competitive and business-friendly as their capacities are developed to spur economic development in their areas.

Regional Office Commitments:

  • Prepare project profile for credit financing

Performance Indicators


  • No. of LGUs provided with capacity building assistance in project development, implementation, management and sustainability


  • No of LGUs with feasibility study reviewed/evaluated and endorsed to MDFO for funding


  • No. of approved LGU MDG-Fund subprojects implemented and completed