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ADB Relocation Site for Muntinlupa Railway Shanty Dwellers Inaugurated

SAN PEDRO, LAGUNA, PHILIPPINES (8 December 2004) - About 427 former informal settlers living along the Muntinlupa railways, Manila, will move into their own homes and gain new livelihood opportunities through a scheme inaugurated today in Dreamland Heights, San Pedro, Laguna.

The project was financed through a US$1 million grant from the Asian Development Bank's (ADB) Japan Fund for Poverty Reduction, financed by the Government of Japan.

The relocation site of about two hectares in Barangay United Bayanihan, San Pedro, Laguna, was selected by the communities themselves. It is about 8 kilometers from their former homes alongside the Philippine National Railways rail tracks. In turn, their vacated areas will be protected by the local government from being inhabited by other informal settlers through the establishment of greenbelts, community gardens and other uses.

The project is a model for the relocation of informal settlers. Residents are given livelihood opportunities, including access to jobs in the city, new job opportunities at the relocation site, and access to credit. There is bridge financing for off-site land purchase under the Government's Community Mortgage Program. Basic services such as water supply, sanitation and roads are also being financed. There are sustainable revolving funds for housing construction, livelihood and microenterprise development loans for beneficiaries, which when repaid will be extended to additional communities.

The project adopted a new self-help and community-based approach to the relocation of informal settlers by establishing a cooperative relationship among local government units, nongovernment organizations, and people's organizations in both the sending and receiving municipalities. This aims to avert economic dislocation among the community.

Two urban poor communities in Buli and Cupang in Muntinlupa City, composed of 427 families out of an estimated 9,000 to 12,000 households who lived along the tracks, are being resettled in this integrated urban development project. The communities are Maralitang Nagkakaisa sa Tramo Buli (MANATRA) and Cupang Tramo Neighborhood Association (CTNA).

"The new community at Dreamland Heights will provide a decent, well equipped living setting without the constant danger from passing trains," says Michael Lindfield, ADB Senior Housing and Urban Development Specialist. "To ensure the project's success, it was shaped by the beneficiaries themselves and not imposed on them," he added.

Besides reducing poverty in the informal communities of Muntinlupa City, the JFPR project will provide guidance to a US$50 million ADB loan project on Metro Manila Urban Services for the Poor.

The total cost of the Muntinlupa project is US$1.2 million equivalent. The Muntinlupa City local government provided US$200,000 equivalent for land purchase, site development and housing construction. The executing agency is the Department of Social Welfare and Development while the Muntinlupa Development Foundation (MDF) is the implementing agency. The project was also made possible in partnership with the National Housing Authority, Habitat for Humanity, and the Municipal Government of San Pedro, Laguna, in coordination with the HUDCC, Department of Education and Department of Finance.

Expected to attend the inauguration today were Mayor Jaime Fresnedi Jr., Muntinlupa City; Mayor Felicisimo Vierneza, San Pedro, Laguna; Ramon Sy, Chairman, MDF; Francis Ferrer, Vice-Chairman, MDF; and Alfred Xerex-Burgos Jr., President, MDG.

In August 2001, Philippine President Gloria Macapagal-Arroyo visited the Muntinlupa railways site to witness the signing of a memorandum of agreement between the Philippine Government and ADB to kick off the project.

The JFPR was set up in 2000 with an initial contribution of ¥10 billion (about US$90 million). Total contributions now stand at almost $327 million for the fund, which is supporting 49 projects in 18 countries around Asia and the Pacific, with over 20 more in the pipeline. The fund supports projects that directly provide relief measures, improve services and facilities for poorer population groups, and apply new approaches, particularly in the social sectors.

ADB is dedicated to rreducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 63 members - 45 from the region. In 2003, it approved loans and technical assistance amounting to $6.1 billion and $177 million, respectively.

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