Philippines : Lhoopa Promoting Green Affordable Housing Project

Nonsovereign Project | 56165-001

Project Details

  • Project Officer
    Zhou, Huizi
    Private Sector Operations Department
    Request for information
  • Approval Date
    24 October 2023
  • Country/Economy
    Philippines
  • Sector
    • Water and other urban infrastructure and services
Project Name Lhoopa Promoting Green Affordable Housing Project
Project Number 56165-001
Borrower / Company Lhoopa, Inc.
Country / Economy Philippines
Location Nation-wide
Type or Modality of Assistance
4363 Loan Ordinary capital resources USD 20.00 million Approved
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
Sector / Subsector

Water and other urban infrastructure and services / Urban housing
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Zhou, Huizi
Project Sponsor(s)
Description
Objectives and Scope The project will support Lhoopa to capitalize on its success to date, grow its capacity to acquire, renovate, construct and sell affordable properties, and achieve its goal of delivering 4,000 affordable houses annually in the Philippines by 2025 and 8,000 by 2028 from around 1,000 in 2022.
Linkage to Country/Regional Strategy

The project is consistent with ADB's Strategy 2030 and supports four of the seven key operational priorities: (i) addressing remaining poverty and reducing inequalities; (ii) making cities more livable and inclusive; (iii) accelerating progress in gender equality; and (iv) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. The project is also consistent with the Country Partnership Strategy for the Philippines, 20182023 which aims to support financing investments that promote high and inclusive growth and supports one of the three strategic pillars: investing in people.

This project is aligned with ADB's Urban Sector Strategy in supporting two of the four goals: (i) improving quality of life and (ii) reducing urban poverty, as well as one of the Project Design Principles of supporting private sector investment. The project has also benefited from close cross-departmental collaboration with ADB's Water and Urban Development Sector Office, particularly around sector analysis and sector-specific inputs on climate assessment.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category B for environment. The anticipated environmental impacts are mainly attributed to construction activities. The scale of environmental impacts varies across different asset types, which include (i) existing house and lots (for renovation); (ii) single lots; (iii) groups of lots with a minimum 30 units; and (iv) raw (undeveloped) land. Lhoopa conducts due diligence, which mainly considers the business risks and compliance requirements. The only environment-related criteria in property selection are the risk for flooding and earthquake damage. Lhoopa only conducts environmental impact and risk assessment when required by regulatory agencies. Each project is executed through a contract, and for large-scale ground-up projects, Lhoopa recently added EHS provisions. The contract template for renovation projects specified compliance with permit requirements from the homeowner's association and local government units. However, there are no provisions for general EHS requirements and other pollution prevention measures. Lhoopa monitors its operations, including contractor performance, using its internal system (software), but this does not cover EHS and labor performance metrics. An EHS committee, comprising senior management members, has been established to oversee and ensure the monitoring and implementation of EHS policies. Some EHS functions, especially those associated with regulatory requirements for Lhoopa projects, were already integrated into the responsibilities of certain personnel or groups at the time of the audit. However, it was observed that Lhoopa had not yet clearly defined the roles and responsibilities for developing, implementing, and monitoring EHS plans and programs throughout the entire organization and its operations.
Involuntary Resettlement In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category C for involuntary resettlement. In unavoidable circumstances where acquired properties have informal occupants, Lhoopa has a procedure to avoid displacement impacts and forced eviction. The Save-a-Home program of Lhoopa assists the informal occupants to be the legitimate property owner. In cases where the informal occupants refuse to participate in the program, these will be excluded from ADB financing.
Indigenous Peoples In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category C for indigenous peoples. Housing projects of Lhoopa are located in residential zones outside any ancestral domain, ancestral lands, or areas occupied by Indigenous Peoples. Considering its fast operation cycle, Lhoopa does not intend to purchase properties in these areas in the future. They understand that doing so will take more time to process, which is not ideal in their operations.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 25 Sep 2023
Credit Committee Meeting 25 Sep 2023
Approval 24 Oct 2023
Last PDS Update 24 Oct 2023

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Lhoopa Promoting Green Affordable Housing Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2023
Lhoopa Promoting Green Affordable Housing Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Sep 2023

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.

Title Document Type Document Date
Lhoopa Promoting Green Affordable Housing Project: Environmental Compliance Audit Report Environment Compliance Audit Reports Oct 2023

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.