asian development bank · city planning staff typically lack formal geographic or spatial analysis...

ASIAN DEVELOPMENT BANK TAR: PHI 31658

TECHNICAL ASSISTANCE(Financed from the Asian Currency Crisis Support Facility)

TO THE

REPUBLIC OF THE PHILIPPINES

FOR PREPARING THE

METRO MANILA URBAN SERVICES FOR THE POOR PROJECT

November 2001

CURRENCY EQUIVALENTS(as of 31 October 2001)

Currency Unit – Peso (P)

P1.00 = $0.0193

$1.00 = P51.92

ABBREVIATIONS

ADB – Asian Development BankCDC – community development corporationCRZ – community revitalization zoneGIS – geographic information systemHUDCC – Housing and Urban Development Coordinating CouncilICT – information and communications technologyLGC – Local Government CodeLGU – local government unitNEDA – National Economic and Development AuthorityNGO – nongovernment organizationPSC – project steering committeeTA – technical assistance

NOTE

In this report, "$" refers to US dollars.

I. INTRODUCTION

1. At the request of the Government of the Philippines, a Fact-Finding Mission was fieldedin July 2001 to formulate technical assistance (TA)1 for preparing a comprehensive slumupgrading and eradication program for Metro Manila. The Mission followed a ReconnaissanceMission undertaken during January-February 2001. The Mission held discussions with officialsof the Housing and Urban Development Coordinating Council (HUDCC), the Department ofFinance, National Economic and Development Authority (NEDA), other Government agencies,local government units (LGUs),2 the League of Cities, and nongovernment organizations(NGOs). Understanding was reached on the objectives, scope, cost estimates, andimplementation arrangements for the TA.

II. BACKGROUND AND RATIONALE

2. Rapid urbanization in the Philippines is seen in the megacity of Metro Manila, ametropolitan area comprising 17 cities and municipalities where the population has increasedfrom under 2.5 million in 1964 to over 12 million in 2000. Metro Manila, growing at 3.3 percentannually, is a major economic engine of growth that contributes approximately 30 percent of thegross national product. At the same time, over 20 percent of the population are living eitherbelow or near the poverty line; 35 percent reside in informal slum settlements,3 many of whichare gateways to a continuous influx of poor rural migrants. The settlements’ growth and demandfor services have overwhelmed the capacity of the government and NGOs to effectivelyrespond. Resettlement programs that have attempted to relocate the urban poor to remote sitesaway from established sources of livelihood have generally failed.

3. Many urban poor communities in Metro Manila have been written off as entrenchedslums that defy solutions for improvement. Major slum upgrading efforts have not beenundertaken on a large scale since the 1970s. In recent years, prime urban areas have attractedheavy investments from private sector developers, creating pockets of relatively good urbanplanning and design, while the Government has pursued major road and light rail projects. Theinterface between poorer depressed informal areas and formal, developed areas is weak, andmunicipal infrastructure is lacking. The majority of new development is undertaken in anuncoordinated and unsustainable manner. Increasing urban density, growing environmentalproblems, an unmet backlog of low-income housing, and worsening traffic congestion haveraised serious concern over the long-term livability of Metro Manila.

4. Most of the LGUs in Metro Manila lack up-to-date, accurate data on their respectiveurban resource bases. Such information is crucial to urban planning; without knowledge of whatis there and what, how fast, and in what ways it is changing, effective planning cannot be done.City planning staff typically lack formal geographic or spatial analysis training, which limitseffective land use and development planning. Computer-based geographic information systems(GIS) using satellite or aerial imagery, and other electronic governance initiatives, offer promisefor more rational urban planning and management.

5. Since the passage of the Local Government Code (LGC) of 1991, which has promoteddecentralization, LGUs have been tasked to take a lead role in their own planning and

1 The TA first appeared in ADB Business Opportunities in August 2000 (Internet edition).2 Cities of Caloocan, Mandaluyong, Marikina, Muntinlupa, and Pasay.3 Informal slums are blighted urban areas that lack basic municipal services and infrastructure, and are typically

inhabited by squatters who lack tenure to the land.

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development, but are constrained by weak capacity and limited resources. NGOs haveincreasingly served as effective development partners, and have supported participatorydevelopment approaches that strengthen project sustainability. Despite these changes, LGUsare generally reactive, and allow new development to occur in an uncontrolled manner. Urbanplanning and management systems are inadequate and accorded low priority. By choice orcircumstance, LGUs are unable to address slum areas, or to control the influx of new squatters.

6. On-site urban upgrading and integrated urban development approaches may effectivelyaddress urban poverty and improve access to basic services, while avoiding complicated off-siteresettlement schemes that are prone to failure. While available land under the control of theLGUs in Metro Manila is in short supply, national government land parcels have been identifiedfor privatization. Previous efforts to sell these parcels through public bidding have failed, largelydue to the problem of squatters. With the sale of such land, the LGC entitles the concerned LGUto 40 percent of the proceeds as its share in the “proceeds from development and utilization ofthe national wealth.”4 LGUs are interested in receiving an in-kind proportion of these landparcels for on-site upgrading or as in-city relocation sites for their squatter populations.

7. National Government land slated for privatization include the 76-hectare Welfarevilleproperty in Mandaluyong, the 450-hectare New Bilibid Prison property in Muntinlupa, andvarious Philippine National Railways parcels in Caloocan, among others. Utilizing theseremaining tracts of government land for in-city urban poor housing, integrated into a balancedurban development scheme, is perhaps the last chance for Metro Manila to resolve the long-standing problem of slum and squatter settlements. Notably, the unrealized asset potential ofthis urban land, or “dead capital” as it has been characterized, is estimated at $66.4 billion forMetro Manila and adjacent urban areas.5

8. A concerted multistakeholder effort is required to formulate and execute a policy reformagenda and action plan to reclaim and convert government land into value-added housingschemes that involve the private sector and civil society. LGUs require reliable and up-to-dateinformation bases to design and implement urban development projects, which can be providedby GIS technology, and strengthened urban planning and management capacity. The TA willaddress these requirements, and will package a subsequent loan project suitable for financingby the Asian Development Bank (ADB).

9. The TA supports the thrusts outlined in the Government’s Medium-Term DevelopmentPlan (2001-2004), the National Housing and Urban Development Framework, and the NationalUrban Policy Agenda 2001-2004. The Government has also announced adoption of the “DeSoto” principle (footnote 5): that is, to seek equity, social justice, and broad gains in economicdevelopment through the unblocking of urban land markets, disposing of idle government land,and granting land titles to the urban poor.

10. The TA and the ensuing program of investment projects will support the policy reformagenda, and initiate a phased, multiyear slum eradication and upgrading program in support ofdecentralization and devolution where local governments, in partnership with communities andthe private sector, assume responsibilities for urban upgrading, renewal, and regeneration.These recommendations are supported by findings under two urban sector TAs,6 and the two

4 Share of Local Government Units in the National Wealth, Local Government Code of 1991 (Republic Act 7160).5 De Soto, Hernando. 2000. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere

Else, p. 251. New York, N.Y.6 TA 3291-PHI: Development of Urban Poor Communities, for $850,000, approved on 10 November 1999; TA 3475-

PHI: Small Scale Advisory TA for Institutional Strengthening of Housing and Urban Development Sector, for$150,000, approved on 2 August 2000.

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ongoing urban upgrading and relocation pilot projects funded by the Japan Fund for PovertyReduction (JFPR) in Muntinlupa and Payatas.7

III. THE TECHNICAL ASSISTANCE

A. Objective

11. The TA aims to assist the Government formulate a phased, metropolitan-wide 15-yearstrategy for slum eradication and urban upgrading in Metro Manila, initiate a process forformulating LGU-level integrated urban development interventions in support of the strategy,including support for the transfer of national Government lands to local governments, andprepare, for possible external funding, a high-priority investment project. The TA will prepareone project within this phased investment program for possible ADB financing. The project willbe relatively modest compared with the overall investment requirement to address Metro Manilain its entirety, but should have high impact and serve as a demonstration of achievable urbansector improvements. A preliminary project framework is given in Appendix 1.

12. The TA will (i) strengthen metropolitan planning and management; (ii) build LGUcapacity for urban and land use planning and management, urban service provision (watersupply, solid waste, and sanitation), urban renewal and regeneration, and housing provision,with a focus on social equity; (iii) help establish mechanisms to promote and direct newinvestment, using incentives and other innovative tools to direct and manage growth and unlockthe urban land market; (iv) help encourage the redevelopment of depressed urban poorcommunities through the creation of special districts and community revitalization zones (CRZs)to attract private sector investment; (v) promote sound environmental management; and (vi)create mechanisms and a framework to assist communities create community developmentcorporations (CDCs) to promote comprehensive urban revitalization programs.

13. The subprojects will evaluate and incorporate feasible development plans and proposalsprepared by concerned government departments and corporations, LGUs, NGOs, communityorganizations, and the private sector. An integrated package of high-priority components inselected LGUs will be prepared for consideration for funding by ADB, other aid agencies, andthe private sector. The project aims to demonstrate what is possible by tackling well-definedissues on a pilot basis and with a limited, and therefore manageable, scope of activities.

B. Scope

14. The TA will help prepare a 15-year strategic metropolitan-wide slum eradication andurban upgrading plan, and formulate a loan proposal of investments covering a 5-year time sliceof the plan. These outputs are to be produced in phase 1 and phase 2 of TA implementation,respectively. Phase 2 will primarily focus on selecting and designing at least three subprojects inselected LGUs, featuring innovative mechanisms, including (i) creation of targeted CRZs and (ii)formation of CDCs as multistakeholder partnerships to oversee community developmentinitiatives. Subproject components will include urban poor housing; urban services (water supplyand sanitation); associated municipal infrastructure (flood control, drainage, roads, streetlighting); social infrastructure (health and education); and other urban amenities.

7 JFPR 9003-PHI: On-Site Urban Upgrading for Vulnerable Slum Communities in Payatas, for $1,000,000, approved

on 13 December 2000; and JFPR 9004-PHI: Off-Site and Off-City Relocation for Vulnerable Slum Communities ofMuntinlupa City, for $1,000,000, approved on 21 December 2001.

4

15. The TA will (i) assess existing development plans and policies with a focus on the urbanpoor; (ii) prepare a 15-year comprehensive metropolitan-wide program for slum eradication andurban upgrading; (iii) prepare pilot integrated urban upgrading, renewal, and regeneration plansfor selected community districts in participating LGUs, using innovative tools and mechanisms;(iv) propose the establishment of pilot CDCs in selected districts to manage communitydevelopment programs; (v) identify associated municipal infrastructure investments to supportthe proposed plans; (vi) establish a GIS for land use and urban development planning andmanagement; (vii) identify high-priority components for investment, and prepare technical,economic, and financial feasibility studies; (viii) prepare a cost recovery and revenue generationplan; (ix) review existing institutional arrangements and recommendations for an improvedinstitutional framework for urban planning and management; and (x) assess information andcommunications technology (ICT) capacity for improved urban governance and management.

16. The TA will assist selected LGUs in piloting comprehensive approaches to urbandevelopment and management in model CRZs, to include urban upgrading, reblocking, infillhousing, densification, land readjustment, possible industrial relocation, employment generation,land redevelopment opportunities, and encouragement of alternative land uses on a shared,community-driven basis in collaboration with the local government and the private sector. TheCRZs will be anchored by high-priority municipal infrastructure projects that will strengthenurban linkages and unlock the development potential of long-depressed communities. Thesubprojects will include extensive community participation, documentation, and sharing ofexperience and resources between districts; and will serve as models for further replication andexpansion. The project will support the overall strategic objective of ADB for poverty reductionby tackling well-established pockets of extreme urban poverty, and problem solving for theirupgrading and permanent improvement.

C. Cost Estimates and Financing Plan

17. The total cost of the TA is estimated at $1,430,000 equivalent, comprising $758,000 inforeign exchange costs and $672,000 equivalent in local currency costs (Appendix 2). ADB willfinance $1,000,000 to cover the entire foreign exchange cost and part of the local currency costequivalent to $242,000. ADB will finance the TA on a grant basis from the Asian Currency CrisisSupport Facility, funded by the Government of Japan. The Government will provide the balanceof the local currency cost, equivalent to $430,000, through payments in kind in the form ofcounterpart staff, office space, furniture, administrative support services, and logistics. TheGovernment has been informed that approval of the TA does not commit ADB to finance anyensuing projects.

D. Implementation Arrangements

18. HUDCC will be the Executing Agency for the project. A project management office willbe established jointly by the participating LGUs and will have a project manager, a team ofinternational and domestic consultants, and counterpart staff with appropriate qualifications andexpertise. HUDCC will provide technical, administrative, and logistical support. Subprojectoffices will be established in participating LGUs.

19. A project steering committee (PSC) will be formed and will meet at least bimonthly toprovide policy guidance and interagency coordination. The chairperson will be the Secretary ofHUDCC;8 members will include representatives of Department of Budget and Management,Department of Environment and Natural Resources, Department of Finance, Department of

8 Related agencies to be represented include Home Guaranty Corporation, Housing and Land Use Regulatory

Board, Land Registration Authority, National Home Mortgage Finance Corporation, and National Housing Authority.

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Interior and Local Government, Department of Justice, Department of Social Welfare andDevelopment, the League of Cities, Metro Manila Development Authority, the National Anti-Poverty Commission, NEDA, Presidential Commission for Urban Poor, NGOs, communityorganizations, and the private sector.9 A core group to be formed within the PSC will meet morefrequently. LGU commitment will be established through consultations with city mayors. Aworking committee will be formed under PSC to provide operational guidance. HUDCC willdesignate a coordinator to supervise and manage the TA, and will assign suitable counterpartstaff.

20. ADB will engage a team of international and domestic consultants in accordance withADB’s Guidelines on the Use of Consultants. The TA will require about 67 person-months ofconsulting services: 31 international and 36 domestic. The international consultants will haveexpertise in urban development; housing and housing finance; municipal services; GIS and landmanagement; urban environmental management and training; institutional development;taxation, property, and land use law; urban policies; private sector partnerships; and financial,economic and social analyses. The domestic consultants will have expertise in urban planning,poverty reduction and community development; microcredit; financial, environmental, andeconomic analyses; private sector partnerships; civil engineering; urban governance; and GISand ICT. The domestic team will include at least two members drawn from NGOs activelyinvolved in the sector. To expedite consultant selection, advance action to recruit theconsultants on a noncommittal basis has been approved. The outline terms of reference are inAppendix 3.

21. The TA is expected to commence in January 2002 for a period of eight months, and becompleted by August 2002. Part 1 will comprise preparing a phased, metropolitan-wide 15-yearstrategy for slum eradication and urban upgrading in Metro Manila, identifying integrated urbandevelopment interventions in selected LGUs in support of the strategy, and establishing a GISfor rapid land use assessments and urban poverty mapping. Part 2 will prepare the Project andpackage high-priority components for community-based urban upgrading and associatedmunicipal infrastructure in selected LGUs, suitable for external financing.

22. In addition to the strategy, the consultants will prepare four reports: inception, interim,draft final, and final report. Tripartite reviews will be conducted by ADB, the Government, andthe consultants to consider the reports. The consultants will conduct two seminar workshops forstakeholders to discuss the Project. The first seminar, to be conducted at the beginning of part 1of the TA, will present the project concept and obtain feedback and inputs for the projectpreparation stage. The second will present and discuss the project proposals in the draft finalreport. Computers and other equipment will be procured by direct purchase in accordance withADB’s Guidelines on Procurement.

IV. THE PRESIDENT'S DECISION

23. The President, acting under the authority delegated by the Board, has approved theprovision of technical assistance, on a grant basis, to the Government of the Philippines in anamount not exceeding the equivalent of $1,000,000 for the purpose of preparing the MetroManila Urban Services for the Poor Project, and hereby reports such action to the Board.

9 Selection of NGOs, community organizations, and private sector representatives will be based on (i) experience in

the urban sector, (ii) existing partnerships with participating LGUs, and (iii) potential to contribute to the TA.

6A

ppendix 1, page 1

PRELIMINARY PROJECT FRAMEWORK

Design Summary Project Targets Monitoring Mechanisms Assumptionsand Risks

Goal

• Reduce urban poverty andimprove the quality of life forlow-income communities inMetro Manila

• Reduce the number of urbansquatters

• Improve the quality of shelterand access to basic municipalinfrastructure for low-incomecommunities

• National government statistics

and records• Local government and

nongovernment organizationrecords

• Continued and consistent

Government commitment toaddress poverty

• Stable macroeconomicconditions with economicgrowth rate higher than theincrease in population

Project Purpose

• Improve access to affordableshelter and basic municipalservices for the lowest fourdeciles of household incomethrough urban renewal andregeneration in selecteddepressed communities inMetro Manila

• Better access of the urbanpoor to shelter and urbanservices

• Development andoperationalization of localgovernment unit (LGU)-levelshelter programs targeted forthe urban poor

• National and local governmentrecords on housing

• Record of number of LGUsinitiating shelter projects

• Necessary housing financemeasures identified under thenational shelter strategy takenby the Government

• Promote decentralized shelteractivities to LGUs and improveLGUs capacity to meet theirresponsibility in the sheltersector through strengthenedurban planning, land useplanning, and poverty mappingcapacity in selected LGUs

• Enhanced capabilities of LGUsto plan and implementsocialized shelter programs

• Improved access of the urbanpoor to microcredit for housingimprovement

• Improved database on landuse, vacant land inventories,poverty mapping andmunicipal infrastructureplanning

• Investment records of nationaland local governments

• LGUs are interested in andcommitted to responsibilitiesset out in the LocalGovernment Code on theshelter sector.

• LGUs have the technical staffto dedicate to the GIScomponent.

• Prepare a project includinginstitutional capacity buildingand physical infrastructurecomponents

• Integrated package of high-priority components adoptedby the Government andaccepted for external funding

• Proposed project is technically,economically, and financiallyfeasible.

(Reference in text: page 3, para. 11)

7A

ppendix 1, page 2


Components/Outputs

• A phased metropolitan-wide15-year program for slumeradication and urbanupgrading in Metro Manila(Jan-May 2002)

• A policy matrix to guidedecentralized urban upgrading,urban renewal andregeneration in Metro Manila(Jan-Jul 2002)

• Feasibility studies andinvestment program forselected LGUs (Jan-Aug 2002)

• Implementation of streamlinedpolicy framework, strategy,and delivery mechanisms forshelter programs for the urbanpoor

• Formation and implementationof local shelter units

• Preparation and approval ofcomprehensive shelter andurban renewal andregeneration programs inproject LGUs

• Technical assistance (TA)progress reports

• Review missions• Tripartite meeting and

workshops• Public, private, and community

sector projects are formulatedand implemented inaccordance with the plan.

• Housing and UrbanDevelopment CoordinatingCouncil, LGUs, and otherGovernment agencies acceptand implement the plan.

• Private sector and communitycooperate with the plan.

• Sufficient technical andmanagement resources atnational and local levelsfacilitate effective processing.

• Provision of improved securityof tenure and access of basicmunicipal services for urbanpoor communities

• Timely guidance fromGovernment on key policyissues

• Provision of microcredit forhousing improvement

• Urban renewal andredevelopment plan

• Commitment to implement theTA’s recommendations

• Project preparation andpackaging (Mar-Aug 2002)

• Institutional developmentaction plan

• Social action plan• Cost recovery and revenue

enhancement plan

• Institutional capability andcapacity building are effective.

• Squatters willingly participatein the plan to derive itsbenefits.

Inputs

• TA budget $1,000,000 equivalent financingby the Asian Development Bank(ADB) for international consultants(31 person-months):• Urban planner (8)• Housing specialist (6)• Municipal engineer/Urban

environmental specialist (4)

• Consultants’ work plan• TA progress reports• Review missions

• Consultants performancesatisfactory

• Government providescounterpart funds.

• Government counterpart staffprovide timely guidance for theconsultants.

8A

ppendix 1, page 3


• Urban land management/GIS specialist (4)

• Financial analyst/Economist (3)

• Urban finance/Private sectorspecialist (2)

• Social analyst (4)

Domestic consultants(36 person-months):• Housing specialist (8)• Municipal engineer (6)• Urban environmental

management/GIS specialist (8)

• Financial analyst/Economist (4)

• Institutional developmentspecialist (3)

• Microcredit /Communityparticipation/Poverty alleviationspecialist (4)

• Urban governance/ICTspecialist (3)

• • ADB financing• Government financing

• $1,000,000• $430,000

Appendix 2


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COST ESTIMATES AND FINANCING PLAN($'000)

A. ADB Financin ga

1. Consultants

a. Remuneration

i. International Consultants 496.0 — 496.0

ii. Domestic Consultants — 180.0 180.0

b. Per Diem

i. International Consultants 118.8 — 118.8

c. International Travel 20.0 — 20.0

2. Equipmentb 12.0 — 12.0

3. Socioeconomic Surveys — 10.0 10.0

4. Seminar Workshops — 6.0 6.0

5. Vehicle Rental — 8.0 8.0

6. Reports and Communications 8.0 — 8.0

7. Geographic Information System and Imagery 40.0 — 40.0

8. Administrative and Technical Support — 14.0 14.0

9. Contingencies 63.2 24.0 87.2

Subtotal (A) 758.0 242.0 1,000.0

B. Government Financin g

1. Counterpart Staffc — 200.0 200.0

2. Office Space, Furniture, Equipment, and Communications — 60.0 60.0

3. Studies and Surveys — 75.0 75.0

4. Administrative Support and Logistics — 60.0 60.0 5. Contingencies — 35.0 35.0

Subtotal (B) — 430.0 430.0

Total 758.0 672.0 1,430.0

— = magnitude zero.a

b

c Includes support provided by Executing Agency and participating local government units.Source: Asian Development Bank estimates.

Includes two desktop computers, one laserjet printer, one photocopier, software and accessories, telephones,and a fax machine.

Financed from the Asian Currency Crisis Support Facility, funded by the Government of Japan.

ItemTotal Cost

Local Currenc y

Forei gn Exchan ge

Appendix 3, page 1


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OUTLINE TERMS OF REFERENCE

A. Scope

1. The TA will comprise two parts: part 1 and part 2.

B. Consulting Services

2. The consultants’ tasks are outlined under each part.

Part 1: Program Concept Formulation / Metropolitan-Wide Strategy for SlumEradication and Urban Upgrading

(i) Assess and analyze existing conditions using available research and studies,supplemented, if necessary, with additional data gathering and surveys.

(ii) Review and analyze Government policies, plans, and proposals that impact onurban planning and development, utilizing recently completed studies andreports.

(iii) Review plans and proposals of main nongovernment organizations (NGOs) andthe private sector that impact urban poor communities in Metro Manila.Encourage the active participation of identified NGOs, business groups, andcommunity organizations in the design and implementation of the Project.

(iv) Review the institutional arrangements and responsibilities for urban planning andurban land management. Recommend a rationalized organizational structure.

(v) Review innovative mechanisms such as tax increment financing and specialincentive districts for urban regeneration. Review developer set asides,exactions, and fees.

(vi) Review the financial capability and capacity of the project implementingagencies, particularly the local governments, to finance project components.

(vii) Review cost recovery and revenue-generating mechanisms, and preparerecommendations for improving revenue streams and increasing income;determine the level and source of subsidies for shelter and municipal services,and the extent to which subsidies benefit the urban poor.

(viii) Review the legal framework for urban planning and management, eminentdomain, land readjustment, tax increment financing and other tools, andenforcement of same; determine the powers, duties, and responsibilities of thevarious agencies; and recommend improvements to the regulatory framework.

(ix) Identify NGOs and community-based organizations (CBOs) active in the sheltersector in Metro Manila and assess the effectiveness of their operations.

(x) Review the private sector’s role in funding and providing housing for lowerincome groups and identify constraints.

(xi) Review the policy and legislative instruments that currently guide the urban landmarket in Metro Manila. Review the urban land administration and taxationsystem and determine the factors that constrain the urban land market.

(xii) Review zoning and building ordinances and determine any impediments to thedevelopment of low-income communities in Metro Manila.

Appendix 3, page 211

(xiii) Investigate the demand and supply for innovative building materials andtechniques applicable to low-cost housing construction.

(xiv) Determine the approximate total number and location of urban poor communitiesin Metro Manila. Assess the demand for land, secure tenure, shelter, and basicmunicipal services among low-income communities, and the affordability andwillingness to pay for the same in selected local government units (LGUs).

(xv) Assess the accessibility to urban poor communities in Metro Manila ofmicrocredit for shelter improvement, including house construction, improvement,and expansion. Recommend how access can be improved.

(xvi) Prepare a policy matrix and outline a policy-driven program concept for the MetroManila Urban Services for the Poor project to (a) improve the efficiency andeffectiveness of shelter delivery to the poor; (b) improve targeting of governmentresources to the urban poor; (c) encourage local governments to develop theirown shelter strategies and programs; (d) unblock the urban land market; (e)enhance the level of service and infrastructure provision to urban poorcommunities; (f) improve access of the urban poor to low-cost building materialsand techniques; (g) provide urban planning and zoning standards, and a buildingordinance environment conducive to the development of shelter for urban poorcommunities; (h) encourage increased private sector participation in urbanrenewal and regeneration activities; (i) enable LGUs to promote urban renewaland regeneration through innovative mechanisms such as special communityrevitalization and redevelopment zones with associated private sector incentives;and (j) strengthen LGU urban planning, comprehensive land use planning, andthe provision of critical municipal infrastructure.

(xvii) Develop a comprehensive, phased, metropolitan-wide 15-year program for slumeradication and urban upgrading for Metro Manila, comprising a synthesis of theabove information review and assessment and a list of prioritized interventions toachieve the strategies goals and objectives in 5-year time slices.

(xviii) Develop an approach and methodology for LGUs to adopt and build on themetropolitan-wide strategy, and formulate appropriate action plans in support ofthe strategy. Provide key principles for waste management for selected LGUs.

(xix) Prepare criteria for LGU participation in the Project, including leadership in urbandevelopment policy, commitment to urban poverty reduction, and projectimplementation experience. Identify at least three land areas within each of theselected LGUs as candidates for community revitalization zones (CRZs).

(xx) Assess the state of geographic information systems (GIS) for land use mappingin Metro Manila. Develop a GIS implementation plan for selected LGUs.Establish and manage a GIS system within the project management office.Source appropriate high-resolution satellite or aerial data for land use mapping,at appropriate urban scales (1:5,000 and 1:25,000) for the pilot LGUs. Train LGUstaff in land use data collection, analysis, and basic GIS use; and advise theLGUs in implementing their own GIS facilities for development planning andanalysis, with emphasis on analyses of squatters and the urban poor.

Part 2: Project Investment Design and Feasibility Analysis

(i) Based on the agreed upon program concept and metropolitan-wide strategy inpart 1, prepare a proposal for a Metro Manila Urban Services for the Poor


Project, comprising a policy component and a physical component. Describe theproject objectives with due consideration to poverty reduction, cost-benefitimprovements, and leverage for further investment.

(ii) Based on the foregoing, determine the appropriate eligibility criteria andprocedures for subprojects to be included in the project.

(iii) Prepare one comprehensive integrated urban development subproject in each ofthe selected LGUs in identified CRZs, in collaboration with the LGU, thecommunity and involved NGOs and CBOs, covering land use planning, urbanupgrading and renewal, industrial location, and municipal infrastructure.

(iv) Include an investment component that can be marketed to property developers,franchisees, and other private sector interests, to attract needed developmentand business enterprises into the area.

(v) Prepare a project framework (logical framework analysis).

(vi) Prepare institutional-strengthening and capability-building programs for each pilotLGU to address (a) improved urban planning and management; and (b) trainingsupport for NGOs in managing and implementing community-oriented urban-poorredevelopment projects. Determine the extent of, and mechanism for, privatesector participation in project implementation and management.

(vii) Prepare a detailed social action development plan covering social awareness,beneficiary consultation, and community mobilization for implementing theintegrated community redevelopment projects.

(viii) Prepare technical, economic, and financial feasibility studies for identified high-priority components for urban upgrading, renewal and revitalization, andmunicipal infrastructure components.

(ix) Draw up proposals for project implementation maximizing the opportunities forlocal involvement in project management and labor; and develop standardcommunity contracts. Provide guidelines for LGU feasibility studies to facilitatereplication of these pilot subprojects in other areas of Metro Manila.

(x) Propose mechanisms for establishing, managing, and operating revolving fundsfor land purchase, and to facilitate housing materials purchase for houseconstruction and improvement. Address the special circumstances of MetroManila, which include more dense, vertical housing solutions.

(xi) Based on the demand analysis carried out in part 1 and the financingrequirements of the subprojects in part 2, define the framework, scope, scale,costs, and implementing arrangements for the proposed Project. Followingstakeholder discussions, propose a lending modality for the Asian DevelopmentBank (ADB), and explore the possibilities for cofinancing by other multilateral andbilateral agencies.

(xii) Prepare detailed cost estimates for each subproject, implementation schedule,and financing plans in accordance with ADB procedures, based on a detailedanalysis of financing sources available and the financial capability and capacityof the participating agencies.

(xiii) Specify the foreign exchange and local currency costs to be financed by ADB,the Government, the local governments, and other agencies, if applicable;


Describe the maturity, grace periods, and relending arrangements if applicable,including possible subsidies.

(xiv) Determine the financing plan and identify sources and applications of funds fromnational and local governments, aid agencies, and the community beneficiaries.

(xv) Describe the implementation arrangements:

(a) the organizational arrangements envisaged to implement the projectcomponents;

(b) the Executing Agency (EA) and Implementing Agencies (IAs), as well asa project steering committee, a project monitoring unit, and projectimplementation units; their respective roles and responsibilities;

(c) an implementation schedule for each identified subproject;

(d) features related to project implementation: procurement; consultingservices; disbursement policies; reports, accounts, and audit; monitoringand evaluation; and relending policies if applicable; and

(e) counterpart requirements by participating LGUs, including officerequirements for each subproject.

(xvi) Review the past records of the EA and IAs in project implementation and theirinstitutional capacity, recommend improvements, and prepare a detailed financialevaluation of selected local governments, if needed.

(xvii) Prepare financial and economic analyses for components, considering benefitssuch as revenue generation, improved health, and increased land values.

(xviii) Address the following social and environmental measures:

(a) Assess the socioeconomic benefits of the subprojects and futurecontributions to the subproject areas in terms of social well-being andother benefits to the people of various income levels. The consultants willfollow ADB’s Guidelines for Incorporation of Social Dimensions andHandbook for Incorporation of Social Dimensions in Projects.

(b) Prepare an initial environmental examination (IEE) for each subproject,and a summary IEE for the whole project, in accordance with ADB’sEnvironmental Guidelines for Selected Infrastructure DevelopmentProjects and Environmental Assessment Requirements andEnvironmental Review Procedures.

(xix) Assess the impact of the project on poverty, and prepare a poverty impactassessment for the program in accordance with ADB guidelines. Identify thenumber of direct and indirect beneficiaries and their poverty level. Provide agender analysis for the project. Collect sufficient baseline data to establishquantifiable, measurable, and realistic targets for the project.

(xx) Prepare a logical framework in accordance with the final policy matrix and projectdesign, and include detailed targets.

(xxi) Develop and use a mechanism and procedures for consultation and participationof stakeholders in planning and designing subprojects. Train LGUs inparticipatory planning processes.


(xxii) Carefully develop ADB’s justification for undertaking the intervention. Establishthe financial and economic objectives and targets for each proposed subprojectand the overall project, using ADB’s Framework for the Economic and FinancialAppraisal of Projects and Framework for the Economic and Financial Appraisal ofUrban Development Sector Projects.

(xxiii) Prepare a detailed financial management plan for cost recovery and revenuegeneration, based on a detailed analysis, using realistic assumptions andtransparent assessment of subsidies, and determine the fiscal impact of theproposed Project.

(xxiv) Prepare an effective project performance monitoring system that includesmonitoring of the project impact on poverty reduction.

(xxv) Undertake public consultations and organize and conduct two seminarworkshops to explain the proposed Project to government agencies, LGUs,community groups, NGOs, private sector, and other interested parties.

(xxvi) Identify opportunities for private sector participation and public/privatepartnerships in providing, operating, and managing infrastructure and servicesrelated to urban upgrading, renewal, and regeneration subprojects.

(xxvii) Review and assess the potential for strengthening the information andcommunications technology (ICT) capacity of selected LGUs relative to electronicgovernance, with focus on providing basic public goods and services. Reviewand assess the web presence of selected LGUs related to promoting communityparticipation and information access to LGU projects and activities, enhancedconvenience by improving access to public records, and promoting transparencyin LGU transactions. Design and prepare an advisory technical assistance (TA).The TA should include (a) establishment of appropriate ICT and GIS systems inselected LGUs in partnership with the private sector; (b) establishment of a website for selected LGUs; and (c) training of the managers and staff of LGUdepartments. The training should cover online transaction processing systems,decision support systems, GIS and web site management, including a programfor contracting out these services as appropriate.

C. Reporting

3. The consultants will submit five reports: inception report within two months ofcommencing the TA; a phased 15-year metropolitan-wide strategy report for slum eradicationand urban upgrading for Metro Manila within three months; interim report within five months;draft final report after seven months; and final report, two weeks after receiving from ADB andthe Government comments on the draft final report.

asian development bank · city planning staff typically lack formal geographic or spatial analysis...

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