Department of Labor and Employment Livelihood or Kabuhayan Program (Kabuhayan Enhancement) 2016 Bottom-Up Budgeting (BuB) Project
DETAILED PROJECT PROPOSAL
I.
PROGRAM TITLE
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1.1 Accredited Co-Partner 1.2 Project Location 1.3 Project Beneficiaries
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1.4 Total Project Cost 1.5 Source of Funds
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Livelihood or Kabuhayan Program (Kabuhayan Enhancement) Municipal Government of Bato, Catanduanes Bato, Catanduanes Eighty five (85) skilled workers consisting of carpenters/ masons, house painters, welders, cooks/ bakers/ food vendors, tailors, manicurists/ beauticians/ barbers, fishermen/ fish vendors, electricians, vulcanizer, computer technician, electronic technician and abaca strippers P 540,000.00 DOLE 2016 Bottom-up Budgeting (BuB) Fund
II. BACKGROUND / RATIONALE The DOLE Kabuhayan Starter Kit (DKSK) Project which was availed by the Local Government Unit of Bato, Catanduanes under its Bottom-up Budgeting Projects has created a very good impact to beneficiaries particularly in providing a considerable increase in their income and uplifting their living situation. In this proposal, the municipal government through the Municipal Poverty Reduction Action Team (MPRAT) seeks to alleviate the living situation of its skilled workers consistent with the national goal of inclusive growth, poverty alleviation and job creation by availing the Kabuhayan Enhancement Component of the Livelihood or Kabuhayan Program of the DOLE Integrated Livelihood and Emergency Employment Program (DILEEP). The implementation of the project, along with other BuB programs, is expected to reduce poverty incidence in the municipality by 30% from 58.69% or 2,384 households to 41.08% or 1,668 households by the end of 2016 (September 2014 CBMS Survey of the LGU).
III. OBJECTIVES In general, it has the objective of increasing the productivity of workers in the informal sector. Specifically, it is aimed at enabling existing livelihood undertakings to grow viable and sustainable businesses that provide income at least at par with those of the minimum wage earner.
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IV. PROJECT DESCRIPTION The project is aimed at enabling existing livelihood undertakings to grow viable and sustainable businesses through the distribution of Kabuhayan Enhancement startup capital in the form of raw materials, equipment, tools and jigs and other support services to eighty five (85) skilled workers consisting of carpenters/masons, house painters, welders, cooks/bakers/food vendors, dressmakers/tailors, manicurists/beauticians/barbers, fishermen, fish vendors, electricians, vulcanizer, computer technician, electronic technician and abaca strippers.
V. MECHANICS AND IMPLEMENTATION The beneficiaries of the this Project shall be identified based on the National Household Targeting System (NHTS) of the DSWD and/or the September 2014 Community-Based Monitoring System Survey of the Municipal Government assisted by the DILG and NAPC. As part of the pre-implementation phase, the beneficiaries shall be given short-period training on production skills with entrepreneurship and business management. The LGU through its PESO shall provide fund for the conduct of the training as its counterpart. Competent speakers shall be sought within the LGU and from other NGAs such as the DTI and TESDA. Beneficiaries shall also be oriented on Kabuhayan Enhancement Program by the PESO Manager Designate and/or the DOLE Provincial Field Office. The implementation phase shall cover the provision of start-up up capital in the form of raw materials, equipment, tools and jigs, and other support services necessary in setting-up an enterprise. In the absence of a social protection, the municipal government shall provide the beneficiaries with insurance from GSIS, SSS, PhilHealth or PNRC. The PESO Manager Designate shall conduct monitoring visits in coordination with the DOLE Provincial Field Office to verify the status of the Project – its impact to the living situation of beneficiaries. Linkage with other government and non-government agencies shall be sought for by the LGU to source out other forms of assistance that can be provided to the identified beneficiaries to enhance their knowledge and further develop their livelihood undertakings.
VI. EXPECTED OUTPUT Eighty five (85) skilled workers skilled workers in the municipality consisting of carpenters/masons, house painters, welders, cooks/bakers/food vendors, dressmakers/tailors, manicurists/beauticians, barbers, fishermen/fish vendors, electricians, vulcanizer, computer technician, electronic technician and abaca strippers were provided with Kabuhayan enhancement start-up capital in the form of raw materials, equipment, tools and jigs and other support services.
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VII. WORK PLAN OF ACTIVITIES Activities
Preparation submission of Proposal
Time Frame
and Project
Expected Output
December, 2015
Concerned Agency PESO Bato
Verification of the submitted Project Proposal and Fund allocation from the DOLE
2nd week of January, 2016
Project viability and allocation of fund confirmed
DOLE/ PESO Bato
Identification beneficiaries
of
2nd week of January, 2016
Beneficiaries identified through NHTS or CBMS and validated by the Punong Barangay/ Barangay Council as to their skill and living situation
PESO Bato
Profiling of beneficiaries and conduct of orientation/assistance in the preparation of Individual Business Plan
3rd week of January, 2016
Identified beneficiaries filled-up Beneficiary Profile form and Individual Business Plan and submitted barangay certification or authenticated certificate of training
PESO-Bato
Preparation of supporting documents
4th week of January, 2016
Detailed Project Proposal completed and other supporting documents prepared: letter of intent, summary of profile of target beneficiaries, summary of tools and equipment, work and financial plan and canvass sheet.
PESO-Bato
Submission of supporting documents to the DOLE PFO
1st week of February, 2016
Project Proposal and other supporting documents submitted to
PESO-Bato
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the DOLE PFO
Liquidation of previously transferred fund
April, 2016
Preparation of liquidation report and submission to the COA
Office of the Municipal Accountant
Liquidation report received by the COA submitted to the DOLE PFO
VIII.
Transfer of Fund to the LGU
April, 2016
Fund for the Livelihood or Kabuhayan Project transferred to LGU-Bato Raw materials, equipment tools and jigs procured
DOLE RO5
Procurement Process
May-July, 2016
Awarding / Release of Kabuhayan Enhancement Start-up Capital Liquidation of DILEEP Kabuhayan Program (Kabuhayan Enhancement ) Monitoring and Evaluation
August, 2016
Turn-over of starter kits to individual beneficiary
DOLE-PFO PESO-Bato
August, 2016
Fund liquidated
DOLE-PFO PESO-Bato
July, 2016 onwards
Project implementation monitored and evaluated
DOLE-PFO PESO-Bato
BAC, LGU-Bato
BUDGETARY REQUIREMENTS: No. of project beneficiaries
:
Total Fund Requested from DOLE under its 2016 BuB Fund
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85
P 540,000.00
IX. TECHNICAL AND FINANCIAL ASPECTS Technical and Financial Aspects such as the Marketing Plan, Production Plan, Operations and Management Plan and Financial Plan are quite similar with the formerly submitted Detailed Project Proposal under the DOLE Kabuhayan Starket Kit Project of the DOLE for the LGU of Bato since target beneficiaries are within the same line of occupation or business, except that these are existing livelihood undertakings which need further enhancement. Also, skilled barbers and abaca farmers were added as beneficiaries.
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Marketing plan Potential market areas are available within the municipality. Welders target market are tricycle drivers/owners and home owners (particularly the construction of window steel casement). Carpenters, masons, painters and electricians target undertakings are construction of private houses, public buildings and road construction projects. To promote the products and/or services, skilled workers should give quality service/ products at affordable cost. Promotional process may also include putting a sign board in front of their own residence. Recommendations from barangay residents and owners of houses previously availed of their services are also important in attracting additional or new customers. Welders should prefer shop locations near the main road within the barangay or in the town proper. Cooks and food vendors’ products must have unique taste and business stall should always be clean and presentable. Business location should be at the most accessible area such near private and government establishments and schools. It is also good to consider fiesta celebration in every barangay. Cooks and food vendors’ products can also be ordered in a made-to-order basis. Having much lower price compared to competitors will also assure of quick sale; however, such should not result to sacrificing the quality of the product. Attitude towards customers is also a must in running a business – that is wearing a smile and portraying a friendly gesture. Tailors’ frequent customers are students, teachers and other office workers. Aside from clothing, tailoring of bags, accessories for wall and picture frames, scrap books and decorative boxes may also be targeted by tailors. They shall ensure that their produce are in good quality at an affordable price in order to encourage costumers particularly tourists and “balikbayan.” A discount on services and on items produced at 5% to 10% may also be imposed for promotional purposes. As to fishermen, the municipality of Bato is graced with vast and unexploited fishing ground which gives bountiful fish catch. Areas for selling fish include Bato Poblacion and BIMASANCA area. Also, wholesalers from other municipalities buy fishes from coastal areas in Bato. Fishermen catch should be sold fresh in order to attract customers and promote food safety. Depending upon fish catch, manner of selling can be in bulk or in per kilo basis. Abaca strippers have the abaca buying station as their market. Since, they composed the majority workforce of the municipality, they also need the attention of the government as to their safety-at-work and production output. Production Plan Carpenters require hammer, chisel, saw, tri-square, level hose, level bar, plane, drill bit and plumb bob to perform their work while masons need various types of trowel, float and hammer, star drill, cold chisel bolster and wrecking baron. However, in order to hastily perform their job, carpenters require electric planer while masons require grinder and electric drill. Carpenters had daily rate of P 350.00 to P 400.00 per day while masons usually paid with P 300.00 to 350.00 per day.
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Materials needed in improving the services of a house painter are air compressor, sprayer, paint brush and roller. As to the identified tools, air compressor and sprayer are must-have tools to increase productivity. As to protective device or material, they need harness and mask. Service fee on a daily basis is at 350.00 per day. However, they can also accept services on “pakyawan” basis. Electricians need multi-tester, wire stripper, pliers, diagonal cutter, electric drill and portable grinder. On a daily basis, they are also paid 350.00 per day. They can earn as much as P 5,000.00 or more in a day on electrical works under lump labor or “pakyawan”. The usual materials of a dressmaker are sewing machine, tape measure and other measuring tools, scissor, tailor chalk, needle and threads. For tailors engage in handicraft, they require handmade paper, abaca fiber and twine, chipboard, Glue (shellwood) and acrylic emulsion. As to handicraft and novelty items, materials are always readily available and can be obtained whenever necessary. Manicurists and beauticians needs are hair blower, electric hair curler, hair flat iron, barber’s scissor, lipstick and lip shines, eye shadow and powder blush, pressed powder, mascara, applicators, assorted nail polish, cuticle nail pusher, cuticle nipper, cuticle scissors, nail and foot file, manicure nail brush, nail cutter and nail file. A barber most important tool is a barber’s cutter. They also need barber’s chair for the comfort of customers. Such comfort and speed in accomplishing task will encourage customers to seek the service of a barber. Fishermen require nylon lines, fishing nets (020-6-50, 020-6-100, 020-7-50, 020-4-50); tingga (lead) and gamao (float) as materials in obtaining appropriate and abundant fish catch. Aforesaid nets are in compliance to RA 8550 since it states that unlawful fishing nets are those that have mesh smaller than 3cm. Fish vendor requires weighing scale. For cooks and food vendors, direct materials needed are cooking tools and food items and ingredients which can be easily obtained from the market. As to production, a cook can produce 60 “puto” per day. At 5.00 per piece, 60 pieces can already give gross income of P 300.00 per day. Combined with other food items, a cook/food vendor can have an average net income of P 600.00 per day or at an average of P 10,080.00 per month. Abaca strippers require protective suit such as raincoat, gloves and rubber boots. They also need “hag-ot” (stripping tool) and “supnit” (extraction tool).
Operations and Management Plan Carpenters, masons, electricians and painters mostly employ the assistance of laborers in performing their job. In that case, they usually seek the assistance of laborers within the family circle or a resident of their barangay. In some instances the house owner or contractor chooses laborers. Laborers had the rate ranging from P 200.00 to P 250.00 per day. Occurrence of bad weather such as heavy rains is one of the major risks in construction; nevertheless, in the span of almost 8-year period, the province of Catanduanes never experience being hit by a strong typhoon. Such had cause rise in construction and business industry in the province. As with other small trades, food vending business is usually managed by family members. With the growth of the business, they tend to hire helpers paid at P 150.00 to P 200.00 per
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day. In order to maximize profit, all cooked items must be sold out at the end of the day. Bad weather condition is one of the identified risks in food vending. Also, during summer vacation, income declines due to the absence of school goers. Dressmakers managed their own tailoring business. With the increase in costumers and availability of additional sewing machine, they tend to hire additional workers who are paid on commission basis. Manicurists, as service workers, are usually on-call. They, sometimes, are employed in parlor shop. In usual cases, fishermen had their wives as fish vendor. In such manner, they can doubly increase the price of fish catch, thus, would allow them to double their family income. Rough sea condition caused by inclement weather is the common foe of fishermen. Abaca strippers usually work in pairs. One assigned in abaca stripping job (botong) while the other is assigned in abaca extraction (supnit). Some abaca strippers are also abaca farmers who owned the abaca land they are farming. Provision of protective suit and tools will increase the production output of abaca farmers, thus, there would a considerable increase in their income. The LGU through its Public Employment Service Office shall regularly monitor the outcome or the impact of the project implementation to the lives of the beneficiaries.
Financial Plan Services of a carpenter are paid at rate of P 375.00 per day while masons usually paid at an average of P 325.00 per day; as such carpenters have an average monthly income of P 9,000.00 while masons are at P 7,800.00 per month. On a daily basis painters and electricians are paid at the rate of P 350.00 per day or an average income of P 8,400.00 per month; however on a “pakyawan” basis, they can earn as much as 5,000.00 or more in every project. Manicurists are usually paid at P 50.00 per person served. They usually served an average of 6 persons per day, thus, they can have an average income of P 300.00 per day or P 7,200.00 per month. Food products are of low cost, however, depending upon quantity and weather situation, a cook/food vendor can have an average income of P 600.00 per day or at P 10,080.00 per month. Cooks who served on occasions such as fiesta, birthday and wedding celebration usually paid with at least P 1,000.00 per day. Prices of fishes fluctuate depending upon the demand and weather condition. Fishermen estimated an average of 6 kg of fish catch per fishing activity. Selling fish at P 60 per kilo will give them an average income of P 360.00 per day or 7,200.00 per month. Pair of abaca strippers usually produced 15-20 kg of abaca per day. As such, with a price of P 40.00 per kilo they can earn as much as P 600 to P 800 per day or P 300 to P 400 per abaca stripper.
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X. MONITORING AND EVALUATION The DOLE Kabuhayan Starter Kit project shall be monitored by the LGU through its Public Employment Service Office and by the DOLE through its Provincial Field Office. Quarterly monitoring visit shall be conducted during the 1st year implementation and once semiannually on its 2nd and 3rd year.
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