The Performance Challenge Fund (PCF) is an incentive provided to Local Government Units (LGUs) in recognition of good governance performance mainly in the areas of transparency, accountability, and service delivery. It is given in the form of financial grant for local development projects contained in their Annual Investment Plans (AIP). Anchored on President Noynoy Aquino’s “Kung walang corrupt, walangmahirap”, the PCF is aimed at promoting good local governance based on the premise that transparency and accountability in local governance operations will lead to improved service delivery with the end goal of improving the living conditions of the people.


Under the PCF, numerous projects like access roads, tourism lounges, training centers, women’s centers, evacuation centers, knowledge centers, and vehicles for Ecological Solid Waste Management and Disaster Preparedness have been implemented and/or completed since 2014.

The total PCF budget allocation for the region in 2013 was PhP 82 M; PhP 49 M for 2014; and PhP 33 M for 2015. Beneficiaries of the project are the Provincial, City, and Municipal governments of the region with 60 LGUs benefitting from the project in 2013, 14 LGUs in 2014, and 5 LGUs in 2015.


PCF addresses the needs of the people in terms of fighting poverty, disaster preparedness, solid waste management, health and sanitation, and local economic development. Access roads facilitated the transport of products contributing to the increased income of farmers; they eased the transport of the sick and pregnant women in labor helping lower mortality and morbidity rates. Vehicles and evacuation centers raised the level of disaster preparedness of LGUs.

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