Revenue-earning subprojects were favored. Many of the implemented subprojects e.g. public markets, public transport terminals, and water supply schemes are good revenue earners or have the potential to be good revenue earners. These subprojects provide essential economic and environmental benefits that will have long-lasting positive impacts. It is expected that most of these investments will be sustainable and will lead to further related investments to expand infrastructure networks. Notably, public markets and transport terminals were the most popular choices of subprojects, while water supply systems were the third most popular. Sanitation, flood control, and solid waste management subprojects, perceived by LGUs as low revenue earners, were not implemented. This indicates that LGUs fail to understand or appreciate the benefits of improving the local environment, and that incentives (like capital grants from the DILG) have not been effectively used to direct LGU investment choices. Building town or municipal halls or gymnasiums are of questionable relevance compared with water supply, sanitation, and solid waste management. Municipal buildings may not generate large revenues, but data suggest that they can contribute to improved revenue collection since tax payers appreciate improved quality of town halls and demonstrate more aptitude to pay their taxes there.
Mindanao Basic Urban Services Sector Project