CIDA decided to bring LGSP Phase I initially to Region VI (Western Visayas) and to two regions in Mindanao (Region XI: Southern Mindanao and Autonomous Region in Muslim Mindanao, or ARMM). In 1996, Regions X (Northern Mindanao) and XIII (Caraga) were added to the coverage of LGSP I and in 1997, Region IX (Western Mindanao) and Region XII (Central Mindanao) became part of the program. At the end of 1999, LGSP Phase I served a total of 315 LGUs consisting of 28 provinces, 24 cities, and 263 municipalities.
In August 1997, an end-of-project review and planning mission concluded that LGSP I was a significant player in the Philippine's decentralization efforts and recommended continued funding for a second phase of the program to target the LGUs, covering the same regions, and expanding the capacity development activities to include local resource partners (LRPs) and civil society organizations (CSOs).