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Under the governance component of JICA Comprehensive Capacity Development Project (CCDP), it is envisaged to provide governance support on the systems and structures of the regional and local governments in conflict affected areas of Mindanao during the transition period of the peace process. In line with this, the project conducted a preliminary assessment with the Department of Interior and Local Government – Autonomous Region in Muslim Mindanao (DILG-ARMM) in 2016 profiling 30 LGUs (Lanao del Sur, Maguindanao, Sulu, Basilan, and Tawi-Tawi) to review and update the state of their local governance and administration. The profiling report revealed that a significant issue for LGUs was the need to strengthen their capacity for revenue generation. JICA and DILG-ARMM signed a Minutes of Meeting on February 2017 agreeing on the implementation of a new Sub-Project entitled, “Capacity Building for LGUs for increased Revenue Generation” or the “Revenue Enhancement Assistance in ARMM LGUs (REAL)” Sub-Project.

The Sub-project (REAL) aims to develop and improve revenue generation capacity of the of the 5 target municipalities in the ARMM/ BARMM region selected based on their revenue generation readiness criteria (Barira, Matanog, Ampatuan, Taraka, Balindong). The other 25 municipalities are also included in leadership training for rolling out of the REAL project in future.

The REAL Project Guidebook on LGU Revenue Generation Capacity Development Programme is the final product of the project. It was handed over to 30 MLGOOs for further replication and JICA is expecting to be incorporated in MILG's budget allocation and program integration.