A fund facility known as Project Development and Monitoring Fund (PDMF) was established by the NEDA from proceeds of Official Development Assistance (ODA), to achieve equitable growth and development in all provinces through priority development projects for the improvement of economic and social service facilities, taking into account factors such as land area, population, scarcity of resources, low literacy rate, infant mortality and poverty incidence in the area. 

The establishment of the fund was in accordance with Section 4 of Republic Act (RA) 8182 or the ODA Act, which particularly states that the NEDA shall endeavor to obtain ODA funds from donor countries, which shall approximately be five percent (5%) of the total ODA loan from the immediately preceding year.  Said funds shall be administered by the NEDA for project identification, feasibility studies, master planning at local and regional levels and monitoring and evaluation.  On October 6, 1999, the NEDA Management Committee (MANCOM)) approved the NEDA guidelines for the Project Development and Monitoring Fund (PDMF).

At the local level, the PDMF shall be implemented through the NEDA Regional Offices (NROs).  Consistent with the national guidelines and the ODA Law, the NROs have prepared their respective guidelines for the utilization of the PDMF.  A PDMF Coordination and Management Team (PCMT)  for Region XII is hereby constituted as the implementing mechanism for the  Fund. On December 28, 2000, the Guidelines for the implementation of PDMF in Region XII was approved by NEDA Regional Development Office Deputy Director-General Augusto B. Santos.

Principal beneficiaries of the project are fourth to sixth class municipalities based on Department of Finance Order No. 24-97 (Income Classification of Local Government Units) dated July 1, 1996.  The project is being implemented by the NEDA Regional Office XII based in Cotabato City.