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ADB and Philippine Government to Sign Agreement for Relocation of Railroad Squatters

MANILA, PHILIPPINES (10 August 2001) - The Asian Development Bank (ADB) and the Philippine government will sign an agreement for a US$1 million relocation project for Muntinlupa railroad squatters on Monday, 13 August.

Philippine President Gloria Macapagal-Arroyo and Yoshiyuki Sadaoka, Minister and Deputy Chief of Mission of the Embassy of Japan will witness the signing ceremony. Signing the agreement will be ADB Vice President Joseph Eichenberger; Secretary Corazon Soliman of the Department of Social Welfare and Development; Assistant Finance Secretary Roberto Tan; Alfred Xerex-Burgos, Jr., President, Muntinlupa Development Foundation; and Mayor Jaime R. Fresnedi of Muntinlupa City.

The integrated urban development project will pilot-test a community-based, self-help approach to resettle two urban poor communities composed of 567 families out of an estimated 9,000 households who live in hazardous conditions along the rights-of-way of the Philippine National Railway. The project, to be implemented by nongovernmental organizations (NGOs), is designed to explore new approaches to squatter relocation in Metro Manila, and aims to establish a cooperative relationship among local government units, NGOs and people's organizations in both the sending and receiving municipalities to enable the community to avoid economic dislocation. The project will provide a range of livelihood opportunities, including access to their jobs in the city, new job opportunities at the relocation site, and access to credit. The pilot project will reduce poverty in the communities of Buli and Cupang in Muntinlupa City, Metro Manila, and provide guidance to ADB's proposed US$50 million Metro Manila Urban Services for the Poor Project.

"Conditions along the railway tracks are not fit for human habitation. Quite apart from the lack of basic services, lives have been lost in accidents involving passing trains," says ADB project officer and senior urban development specialist Matthew Westfall. " This project will create and test new partnerships at the community level to secure lasting solutions to a problem that has plagued Metro Manila for decades." This approach is consistent with the Government's thrust to empower poor communities.

The project will be financed by the ADB's Japan Fund for Poverty Reduction, which is financed by the Japanese Government. The fund, with total resources of 17.9 billion yen (approximately US$145 million), was established last year to provide grants for poverty reduction activities that add substantive value to ADB projects.

The project, to be led by the Muntinlupa Development Foundation in partnership with Muntinlupa City's Socialized Housing Program Committee (SHoPCom), will provide bridge financing for off-site land purchase under the Government's Community Mortgage Program for the affected families of two partner communities. It will also finance basic services such as water supply, sanitation and roads. The project includes sustainable revolving funds for housing construction, livelihood and micro-enterprise development loans for beneficiaries, which when repaid will be extended to additional communities. The project is intended to establish a model for the relocation of informal settlers.

The total cost of the Muntinlupa project is estimated at US$1.2 million equivalent. The Muntinlupa City local government will provide US$200,000 equivalent for land purchase, site development and housing construction. The executing agency will be the Department of Social Welfare and Development. The project is scheduled for completion in 2002.

The Muntinlupa Development Foundation is an NGO working on behalf of the urban poor in Muntinlupa. SHoPCom is a multisectoral organization created by Mayor Jaime Fresnedi to help the local government address the housing needs of Muntinlupa's urban poor.

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