Philippines: Development of Poor Urban Communities Sector

Sovereign Project | 32499-013 Status: Closed

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Project Name Development of Poor Urban Communities Sector
Project Number 32499-013
Country Philippines
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2063-PHI: Development of Poor Urban Communities Sector
Ordinary capital resources US$ 30.50 million
Loan: Development of Poor Urban Communities Sector
Ministry of Foreign Affairs (Finland) US$ 5.00 million
Deutsche Gesellschaft fur Tech. Zusammenarbeit US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The overarching goal of the Project is to reduce income poverty and quality-of-life poverty in urban areas. Its main objectives are: (i) to improve the access of low-income urban families to land tenure and affordable shelter and, in support of this, to provide or upgrade basic municipal infrastructure and services; and (ii) to decentralize shelter sector activities through LGUs and, in parallel to this, to strengthen the role and capacity of participating communities. The proposed Project consists of three parts. In Part A, the LBP will re-lend the loan to qualified LGUs for site development. About 30,000 households will gain access to land tenure with basic infrastructure and services. In Part B, the LBP will establish shelter financing and microcredit facilities for the potential beneficiaries, to support financing for (a) serviced plots and house improvements, (b) new housing loans, and (c) microenterprise credit facilities. In Part C, the NHA will undertake capacity building and project implementation support programs for communities and LGUs to strengthen the decentralized shelter delivery mechanism.
Project Rationale and Linkage to Country/Regional Strategy The Philippines continues to urbanize rapidly. Over half of the population is in the urban areas, and this proportion is expected to reach 60 percent by 2010 if current trends continue. Affordable shelter and land markets have not kept pace with rapid urban growth: more than 40 percent of urban families have to live in makeshift dwellings in informal settlements. While official data indicate that only about 20 percent of the 7.5 million urban households fall below the poverty income line (P13,915 per capita per year as of 2001), the poverty income line alone does not capture the dire situation of informal settlers. Many of the urban poor living in informal settlements suffer from lack of access to basic services and infrastructure, poor-quality housing, insecure tenure, and high risks to public health. Complicated legal processes for obtaining legal title and the scarcity of urban land further prevent poor urban dwellers from using the necessary capital to rise from poverty, and financial services for the urban poor are virtually nonexistent in the formal sector. The housing finance system benefits only formal sector employees above the fifth income decile, and few Government housing programs are effectively targeted to the urban poor communities. With the large number of informal urban dwellers and the continuing high levels of income poverty and quality-of-life poverty in urban areas, a sectorwide intervention to combat poverty is urgently required.
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and arrangements satisfactory to ADB for the engagement of domestic consultants. A team of international and domestic project management consultants will help the Project Management Office implement, manage, and monitor Project activities. The consultants will assist with the review of community action plans and contract documents, and provide training for the LGUs in Project implementation, monitoring, and evaluation, financial aspects, and community participation approaches. For the detailed engineering design and supervision in Part A, LGU counterpart funds will finance the services of domestic consultants, who will be recruited by the Project Implementation Unit for the LGU concerned, following procedures acceptable to ADB.
Procurement Goods and services financed by the ADB loan will be procured according to ADB's Guidelines for Procurement applicable to loans to development finance institutions for re-lending to sub-borrowers.
Responsible ADB Officer Florian M. Steinberg
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Housing and Urban Development Coordinating Council
Celia Alba
Housing and Urban Development Coordinating Council (HUDCC)
Development Bank of the Philippines
Mr. Brillo Reynes
Development Bank of the Philippines
Concept Clearance 08 Mar 2003
Fact Finding 18 Jun 2001 to 17 Jul 2001
MRM 10 Jun 2002
Approval 18 Dec 2003
Last Review Mission -
PDS Creation Date 01 Dec 2006
Last PDS Update 02 Jul 2010

Loan 2063-PHI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2003 22 Dec 2003 21 Apr 2004 20 Apr 2010 - 10 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 57.40 Cumulative Contract Awards
ADB 30.50 18 Dec 2003 0.00 0.00 0%
Counterpart 21.50 Cumulative Disbursements
Cofinancing 5.40 18 Dec 2003 17.79 0.00 100%
Title Document Type Document Date
Development of Poor Urban Communities Sector Project Project/Program Completion Reports May 2011
Development of Poor Urban Communities Sector Project Reports and Recommendations of the President Nov 2003

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Philippines: Development of Poor Urban Communities Sector Project Validations of Project Completion Reports Dec 2012

Related Publications

None currently available.

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  • 08 Nov 2010 | Article

    Homes for the Working Class

    Enticed by the historic province's modern industrial status, Cavite's blue-collar workers are finding affordable, attractive housing in an ADB-funded project. General Trias, Cavite - Once the cradle of the Philippine revolution, the province of Cavite has become part of a different type of mass movement, as droves of blue collar workers head there in search of jobs and affordable housing.