This awards program aims to stimulate LGUs to put premium on performance in order to avail themselves of the financial package that they could use to jumpstart and sustain local development initiatives that are aligned to the Millennium Development Goals.

Specifically, it is an incentive fund to qualified LGUs which comes in the form of counterpart funding for Local Development Projects under the LGU Annual Investment Program (AIP) and funded out of the 20% Development Fund which are consistent with the national development.

The PCF, which has a P500 million fund allocated by Congress, is an incentive granted selectively by the government to best performing local government units that have excelled in the delivery of various public service to their respective constituents. 

The incentive, on the other hand, should be used for the implementation of priority projects of LGUs aligned to national government priorities in order to achieve the Millennium Development Goals, as well as maintain core road network to boost tourism and local economic development and comply with the Philippine Disaster Risk Reduction and Management Act of 2010 and Ecological Solid Waste Management Act of 2000.

Last year, the PCF awarded a total of P30 million or P1 million each for 30 high performing LGUs