asian city development strategies: … city development strategies: fukuoka conference 2000 ......

ASIAN CITY DEVELOPMENT STRATEGIES: FUKUOKA CONFERENCE 2000 City Profiles

Olongapo (the Republic of the Philippines)

Olongapo - 1

HISTORY Olongapo City was the last

piece of Philippine territory surrendered by the US to the country in the 1950’s. It was the first chartered city and highly urbanized city in its province. It rose from a “sin city” in the 1960’s and 1970’s to become a model city in the 1980’s and 1990’s. Olongapo city pioneered the Color-coded transport system, Integrated Solid Waste Management System, volunteerism, Organized vendors elderly, youth and women’s groups, use of slogans, People’s Law Enforcement Board, Emergency Response Team, Olongapo City Colleges. It has survived extreme political reversals, the withdrawal of the bases and the greatest volcanic eruption of the last century. It built the Subic Bay free port from its vision and now seeks to extend the free trade regime to its people. The resulting culture of volunteerism built a hardy and resilient people that remains Olongapo’s most enduring resource.

OLONGAPO CITY

Olongapo - 2

CITY DATA AT A GLANCE Total Land Area : 185 sq. km (17 barangays or

villages) Urban Area : 15.95 sq.km Population : 234,389,(1999 est.) Growth Rate : 2.14% Total Employment : 83,559 Labor Force Participation : 61.7% Inflation Rate : 11.5% in 1999 Gross Regional Domestic Product (Region 3) : $2,000,990 Wage Rate : $4.29 per day Business Establishments : 4,309 (with 18 banks) Households : 38,908 (1995 NSO Census) Average household size : 4.6 persons Population Density : 1,267 persons per sq.km. Urban Density : 14,740 persons per sq.km.

90%

10%

0.002.004.006.008.00

10.0012.0014.0016.0018.0020.00

in M

illio

n D

olla

rs

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Calendar Years 1999 - 2008

CITY OF OLONGAPOPER CAPITA BUDGET (Sectoral)

amount

26% Personal Services 64% Maintenance &

other miscellaneous expenses

8% Infrastructure 2% Other Capital

Outlays Public Buildings, Roads and Bridges

1999 CITY EXPENDITURES $16.32 Mill ion

1999 CITY R E V E N U E S $18.08 Mill ion

1999 Income per citizen:

$81.74 Expenditures per citizen:

$80.59 Tax Income per citizen:

$27.12 Non-Tax Income/citizen: $54.62

Gen. Services: $16.48 Social Services: $ 15.00 EEccoonnoommiicc SSeerrvviicceess:: $$4499..1188



Olongapo - 3

Potentials for and Constraints against Development

Economic/(Public-Private Partnership) v Potential for development as Free Port

- Potential as a center of trading, education and welfare services by strengthening and expanding existing support facilities.

- Coastal resource-presence of beaches/port facilities.

- Presence of service oriented establishments for tourism development.

v Accessibility to Transport Facilities - Presence of international airport, deepwater

seaport and well connected by highway to Manila

v Availability of support facilities - Relatively adequate power and water supply - Available communication facilities/access to

satellite communication/broad cast v Conducive investment climate

- Peaceful and safe community Urban Planning and Environment v First privatized water supply system v City operates power distribution as revenue

generating system v City manages its own Solid Waste Management

System Urban Governance/Capacity Building v Organized, trained and highly motivated work

force. v Presence of constituents who are involved in

community affairs. Financial Management v High interest of local leadership in sourcing fund

from different sectors to augment existing development initiative and for development programs/projects.

v Close monitoring of public enterprises to maximize revenue from non-traditional sources.

v More than 60% of revenue is self-generated by the city

P O T E N T I A L S Economic/(Public-Private Partnership) vAbsence of natural resources to develop local

products vDependence of most of economic activities on

the former navy base vDis-integration with SBMA development vRegional competition with other growth areas vAbsence of clear investment policies and

incentives Urban Planning and Environment vLimited land available for development due to

topography and existence of boundary dispute with adjoining municipalities

vInadequate infrastructure, support facilities for landfill operation, leacheate system

vLack of adequate road network vLack of bus and jeepney terminals vLack of equipment pool vLack of sewerage system vIncreasing growth strains limited

area/watershed/natural resources. v Weak implementation of Environmental regulations

relative to resource and conservation v Absence of cadastral surveys v Inadequate flood control programs

Urban Governance/Capacity Building v Limited human resources development program and

capacity to perform development functions v Lack of statistics to guide development planning

Financial Management v Limited tax base especially for real property taxes v Insufficient funds for local government projects v Reduction of fiscal autonomy from the national

government with Internal Revenue Allotment (IRA) and Development fund issues

C O N S T R A I N T S

Olongapo - 4

KEY ISSUES IN THE CITY A. URBAN PRODUCTIVITY/POVERTY

1. Physical Constraints - There is a need to maximize the use of a small, congested and restricted area between the mountains and the sea in a way that does not stress the environment. Its relative isolation also makes its vulnerable to inaccessibility by land.

v Natural isolation also makes it a natural free port and trading area. 2. Economic constraints - Development cannot rely on traditionally agriculture-based

growth because the area is historically commercial. Commercial growth is challenged by the Asian crisis.

v A tradition of trading is conducive to a service and trade- based economy. 3. Dis-integration with the SBMA - Political factors may lead to uncoordinated and

inappropriate strategies for growth in what is essentially a homogeneous area. v The City , however, is given an opportunity to chart a course that is independent of SBMA.

B. URBAN ENVIRONMENTAL MANAGEMENT- With the stress of a growing population in a cramped area, Centralized government regulation/control is ineffective in protecting the environment.

C. URBAN GOVERNANCE AND CAPACITY BUILDING 1. Regional Competition - Other growth areas in the country and the Asia-Pacific region

compete for the same investment and tourism dollars. v The City can differentiate itself from other investment sites. 2. Institutional constraints - Traditional local government structures and practices do not

jive with the devolve functions and revenue-generating powers under the law and as needed by the global environment

v Access to new methods of governance through exchange programs helps build modern institutions.

VISIONS ON THE FUTURE

Short- and Medium-Term Visions – To develop the tourism, commercial and industrial potentials of the City to the fullest extent

Long Term – to create a political and economic unification of the areas around the Subic Bay area into a Freeport corporate entity which is fast, friendly, flexible, forward-looking and Filipino in character.

CHART OF PROJECTED SOCIOECONOMIC

FRAMEWORK IN 2010 AND 2020

PROVINCE OF ZAMBALESGROSS DOMESTIC PRODUCT

17,944

36,951

66,206

0

10

20

30

40

50

60

70

1995 2002 2010

YEAR

AM

OU

NT

in T

hous

and

(Pes

os)

CITY OF OLONGAPOPOPULATION PROJECTION

364,895295,263

265,601239,458

179,754193,327156,430145,109

107,785

0

1 0 0

2 0 0

3 0 0

4 0 0

1970

1975

1980

1990

1995

2000

2005

2010

2020

Y E A R

POPU

LATI

ON

inTh

ousa

nd

CITY OF OLONGAPOPROJECTED URBAN AREA

1,594

2,608

3,143

0

500

1000

1500

2000

2500

3000

3500

1998 2010 2020

YEAR

HE

CTA

RE

S



Olongapo - 5

PROJECTS

PROJECT BRIEF INDICATIVE

COST $ (million)

1. Civic Center Complex (Gymnasium/Sports Center/ Convention Center)

Construction of a multi-purpose complex to provide a venue for events for domestic and tourism purposes. It is divided into several development phases and modular parts

17.8

(i) Convention Center 3,000-seater convention center 1.9 (ii) Bridge/Parks Landscaping and access facilities 0.78 (iii) Stadium 16,000-seater capacity center 15.17

2. Lot 21 Commercial Mall Construction of a four (4) storey 4.25 commercial mall to support the urban redevelopment of

Magsaysay, Rizal and Gordon Avenues and also the sustainability of the civic center complex

3. Formulation of a Master Plan of Olongapo City

Preparation of a physical framework for planning and development to include Land Use plan, transport study and geodetic survey

0.55

4. Redevelopment of Rizal Avenue, Magsaysay Drive and Gordon Avenue Triangle (Commercial Triangle Urban Redevelopment)

Upgrading and improvement of these commercial areas to attract more tourist traffic by way of having a unifying theme or character

8.37

(i) Magsaysay 4.12 (ii) Rizal 2.5 (iii) Gordon 70.0

5. Rehabilitation/Improvement of Power Distribution System

Convert 4.16 KV to 13.8 KV lines, construction of new substation, installation of primary meters and upgrading of existing distribution lines

1.75

(i) Phase I (4.16 to 13.8 KV) 1.15 (i) Phase II (distribution) 7.25

DEVELOPMENT STRATEGIES A. Overall Strategy v To become a self-sufficient, indispensable and symbiotic partner of the national

government in developing the first free port city in the Philippines. B. Strategic Initiatives v Create the policies and legal framework to institutionalize the full integration of the

City and the free port.

v Shift the economic foundation of the City from Resource-based activities to Technology-based activities

v Build strategic and key infrastructures that are essential to establishing a full free port

in the City v Embark on a promotions and marketing program to attract investors and business to

the area

PRIORITY PROGRAMS/PROJECTS

Olongapo - 6

6. Kalaklan River Desiltation One time channeling of the Kalaklan River about 50m wide, 2m deep and 3.6 km long and acquisition of dredging equipment for the annual maintenance/desilting of the main river system in the city to alleviate flooding situation

3.66

7. Construction of New Roads Construction of a new system of by-pass roads,

ring/circumferential or radial roads. The by-pass roads will allow direct access to the provinces of Zambales from Bataan province while other roads will provide access to new areas developed within the city thereby increasing mobility and reducing congestion

113.83

(i) Ring Road 17.33 (ii) Radial Road 6.5 (iii) By-Pass Road 90.0

8. Sta. Rita Creek Rehabilitation

The project will provide wide, open and lined Sta. Rita creeks that are easy to maintain to mitigate flooding in this biggest barangay with the lowest elevation in the city

0.28

9. Bank Protection to Sta. Rita, Mabayuan and Kalaklan Rivers and Declogging of Open Drainage System

Construction of the revetment wall of the main river system in the city and declogging of all open drainage systems to direct free flow of rainwater

1.03

10. Computerization Computerize real property taxes, business and license and public utility services

0.45

TOTAL 151.97 M

PROGRESS OF IMPLEMENTATION OF PRIORITY PROGRAMS/PROJECTS:

1. Olongapo City adopted it as the Medium-Term Development Plan (Sangguniang Panlungsod Resolution No. 02 dated 12 January 2000)

2. The following CDS Projects are already being implemented:

Project Cost Fund Source Progress Target

Completion

Phase I Power Distribution Upgrade

$800,000 Development Bank of the Philippines

Switchgears procured; Design for bid

Dec. 2000

Phase I Master Plan $10,000 World Bank WB Negotiating with Consultant

July 2000

Computerization $375,000 Development Bank of the Philippines

Real Property Tax Assessment completed; encoding business licenses

Dec. 2000

River Dredging & Desilting

$125,000

Dept. of Public Works & Hi-ways / Countrywide

Development Fund

Regular annual dredging, on-going; to continue after monsoon

Done once a year

Phase II Convention Center

$1.0 M Development Bank of the Philippines

Contractor mobilized; done in 10 months

Mar 2001



Olongapo - 7

ACHIEVEMENT OF THE CDS EXERCISE A. AWARDS

1. 1st Runner-Up – Most Outstanding Highly Urbanized City in Local Fiscal Administration in the entire Philippines

2. Olongapo City, Most Outstanding Highly Urbanized City in Local

Fiscal Administration in Luzon – Selected by Department of Budget and Management. March 2, 2000

3. Recognition for Excellence - Special Recognition for Partnership w/

the World Bank under the CDS, February 26, 2000 4. Olongapo City, Most Outstanding Highly Urbanized City in Local

Fiscal Administration in Region III – Selected by Department of

Budget and Management. December 1999

5. Konrad Adenauer Local Government Award, December 1, 1999 6. Presidential Scroll of Honor, December 1, 1999

7. Plaque of Recognition – Konrad Adenauer Stiftung and LOGODEF

B. CONFERENCES

1. Attended the CDS Conference in Tokyo, Japan on July 30, 1999

Next Steps for the CDS Plan

1. Institutional Action Plan

(a) Propose 20 training modules to increase

professional skills (b) Increase commercial/revenue generating

departments of Local government

2. Commercial Action Plan

(a) Incorporate private stakeholders to

consolidate small land parcels into a large

site under a land development corporation

(b) Privatize public assets

(i) Slaughterhouse (ii) Lot 21 Commercial Mall

3. Financial Action Plan (a) Tap other financial sources

(i) Bond Floats

(ii) Joint Ventures

(b) Partner with private sector on key projects (i) Convention Center operations

4. Community Action Plan – Massive information campaign on present plans of the City under CDS

Olongapo - 8

A MESSAGE FROM MAYOR KATE Olongapo City, in the tradition of its creed to

“Aim High”, is committed to chart its own destiny, to improve the quality of life of its citizens and remain in the cutting edge of economic development in the country. Its dedication, vision, values and volunteerism will ensure victory over its challenges. Olongapo shall not fear its future, but rather, it shall make the future its friend.

Second CDS Workshop, September 20-21, 1999

2. Attended Internat ional Conference on Healthy Cit ies and Urban Pol icy Research in

Tokyo, Japan on March 12-16, 2000 and presented the Olongapo Ci ty ’s Exper ience

on Intersectoral Collaboration and Community Participation 3. Attended the Second World Compet i t ive Cit ies Congress at the World Bank HQ in

Washington DC on May 17 -19, 2000 upon the inv i tat ion of Wor ld Bank Pres ident

James D. Wolfensohn 4. Part ic ipated in the US -Asia Environmental Partnership ’s Env i ronmenta l Exchange

Program from May 17-27,2000 cover ing Washington DC; Columbus Ohio; Port land,

Oregon; and San Diego, California 5. Invited by the ADB to participate in the Asian Mayor’s Forum …Fighting Urban

Poverty to be held on June 26-29, 2000 in Shanghai, People’s Republic of China.

C. EFFECTS ON THE CITY 1. The City has a useable strategic plan.

2. Stakeholders have institutionalized participation in the planning and implementation

process. 3. Capacity of specific departments has improved. 4. Computerization of functions has been accelerated.

Contact info.

Office of the City Mayor Olongapo City Hall Rizal Avenue, Olongapo City 2200 Philippines Tel No. 6347 222-2206

6347 222-2565 Fax No. 6347 222-4777 Email: [email protected] [email protected]

First CDS Workshop, June 14-15, 1999

asian city development strategies: … city development strategies: fukuoka conference 2000 ......

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