United Nations Human Settlements Programme

Regional Office for Regional Office for Asia and the Pacific
COUNTRY PROGRAMME DOCUMENT
2008 – 2009
PHILIPPINES
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
2
Excerpts from this publication may be reproduced
without authorisation, on condition that the source is
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© United Nations Human Settlements Programme
(UN-HABITAT), 2008.
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HS Number: HS/1116/09E
ISBN Number(Series): 978-92-1-132030-5
ISBN Number:(Volume) 978-92-1-132082-4
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COUNTRY PROGRAMME DOCUMENT 2008 – 2009 3
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TABLE OF CONTENTS
FOREWORD EXECUTIVE DIRECTOR 4
FOREWORD VICE PRESIDENT 5
FOREWORD SECRETARY 5
SITUATION ANALYSIS 6
Focus area 1: Advocacy, monitoring and partnerships 6
Focus area 2: Participatory urban planning, management and governance 7
Focus area 3: Pro-poor land and housing 8
Focus area 4: Environmentally sound basic urban infrastructure and services 9
Focus area 5: Human settlements finance systems 10
RECENT AND ONGOING WORK 13
UN-HABITAT 13
Partners 15
STRATEGY 16
UN-HABITAT’s proposed strategy for the sector 16
Programme objectives 18
Identified sector priorities 19
IMPLEMENTATION ARRANGEMENTS 20
Key principles 20
Information 20
PROGRAMME FRAMEWORK 21
Results/resources by thematic component 21
Required budget 24
BIBLIOGRAPHY 25
ACRONYMS 26
EXECUTIVE SUMMARY 28
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
4
EXECUTIVE DIRECTOR
In April 2007, the Govern-
ing Council of UN-HABITAT
approved our 2008-2013
Medium-Term Strategic
and Institutional Plan. This
plan intends to promote the
alignment of UN-HABITAT
normative and operational
activities at country level.
The UN-HABITAT Country Pro-
gramme Documents (HCPD) are tangible components
of this Plan as well as a genuine endeavour of UN-
HABITAT to better coordinate normative and opera-
tional activities in a consultative and inclusive process
involving UN-HABITAT’s in-country focal points, UN-
HABITAT Programme Managers, national governments,
UN country teams, sister-UN agencies, development
partners and all divisions of our Agency. The UN-HABI-
TAT Country Programme Documents are strategic tools
meant as a guide for all UN-HABITAT activities over a
two-year period. A major dimension of the UN-HABI-
TAT Country Programme Document is to advocate
UN-HABITAT’s mandate and address the urban chal-
lenges facing the world’s developing countries.
The UN-HABITAT Country Programme Documents
identify national urban development goals and priori-
ties including shelter, urban governance, access to
basic services and credit. Important cross-cutting issues
such as the environment, gender, responses to disas-
ters, and vulnerability reduction are also addressed.
The UN-HABITAT Country Programme Documents
focus on UN-HABITAT country programming. They
serve as a work plan for UN-HABITAT Programme Man-
agers and a reference tool for national and local actors
involved in sustainable urban development. Accord-
ing to the Medium-Term Strategic and Institutional
Action Plan adopted by the UN-HABITAT Committee
of Permanent Representatives on 6 December 2007,
twenty UN-HABITAT Country Programme Docu-
ments were completed during 2008, including the
One-UN Pilot countries where UN-HABITAT is active.
In line with the United Nations reform process,
UN-HABITAT Country Programme Documents seek
to strengthen the role of the United Nations and
to demonstrate our commitment. I wish to thank
our UN-HABITAT Programme Managers for their
input and dedication and for putting together these
documents under guidance of the Regional and
Technical Cooperation Division and with support
from all branches and programmes of the Agency.
Anna K. Tibaijuka
Executive Director, UN-HABITATs
FOREWORDS
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SECRETARY
The Philippine Government
remains committed to the
achievement of the Millen-
nium Development Goals
(MDGs) which provide the
framework for the projects
outlined in the Medium-
Term Development Plan. In
keeping with the Philip-
pine government’s thrust of
sustainable development,
the Department of the Interior and Local Government
(DILG) supports the Local Government Units (LGUs)
in improving their capability to govern as well as in
promoting citizen participation in local development.
Being at the forefront of delivering basic services
to every Filipino, the LGU personify the presence or
absence of good urban governance in their daily
operations, guiding policies and strategic directions.
The Habitat Country Programme Document (HCPD)
is vital in providing the framework and outlining the
areas of convergence and partnership between the
DILG and UN-HABITAT. The DILG is one with UN-HABI-
TAT in supporting the LGUs, who promote urbanisa-
tion and urban development through good urban
governance. Empowering local governments to carry
out their devolved functions help bring the decision-
making closer to the people, as well as lead to a more
responsive and effective local government that address
people’s needs, ensure transparency, accountability
and encourage people’s participation. UN-HABITAT’s
experience in localising the MDGs in key cities in the
Philippines is significant in outlining an approach for
mainstreaming good governance with focus on some
of the mast basic human development targets.
Hopefully this HCPD will catalyse further discussion
among stakeholders to come up with new ideas and
innovative strategies in responding to the challenges
of urbanisation and sustainable urban development
and the governance systems that address these issues.
In behalf of the Department, I congratulate UN-HABI-
TAT for the development of this HCPD and reiterate
our partnership in working towards the realisation of
good urban governance at the local level with active
participation of all stakeholders and the community.

Ronaldo V. Puno
Secretary Department of the Inte-
rior and Local Government
VICE PRESIDENT
The Philippine government
and UN-Habitat are strong
partners in addressing the
urban challenges faced
by our county. Being one
of the fastest urbanizing
countries in the world, the
Philippines needs com-
plementation of efforts
not only amongst public,
private and civil actors, but
also from international organizations like the UN in
addressing problems attendant to rapid urbanization.
The UN-Habitat’s Country Programme Document
(HCPD) presents great opportunities for col-
laboration between UN-Habitat and the Philippine
Government. It promotes and aligns UN-Habitat
normative and operational activities at the coun-
try level. It sets guideposts for advocacy, as well
as program implementation and monitoring.
The Housing and Urban Development Coordinat-
ing Council, as the main government agency at
the forefront of housing and urban development
effort, therefore acknowledges this HCPD as a
vital instrument in reinforcing the strategic direc-
tions that must be taken by both the national and
local government to achieve sustainable urban
development as aligned with the Medium Term
Philippine Development Plan (2004-2010).
The commitment expressed by UN-Habitat to support
the review and enhancement of the National Urban
Development and Housing Framework (NUDHF) is very
significant and catalytic for the country. Coming up
with a strategic and responsive NUDHF will facilitate
achievement of good urban governance and likewise
result to efficient and effective shelter and basic
services delivery. This is most suited for and well-
matched with the characteristics and real needs of the
urban sector especially the poor and marginalized.
On behalf of the Philippine Government, it is my hope
that the information and insights contained in the UN-
HCPD will encourage all the stakeholders and partners
working on housing and urban development to enjoin
their efforts and work collectively towards the attain-
ment of sustainable urbanization in the Philippines.
Hon. Vice President Noli De Castro
Chairman, Housing and Urban Development
Coordinating Council
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
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FOCUS AREA 1: ADVOCACY,
MONITORING AND PARTNERSHIPS
The enactment of the Local Government Code (LGC)
of 1991 and Urban Development and Housing Act
(UDHA) of 1992 provided the Local Government Units
(LGU) in the Philippines the mandates in perform-
ing tasks that would lead and facilitate sustainable
urbanization. The UN Millennium Declaration (2000),
of which the Philippine Government is a signatory,
inspired the government to commit to the Millen-
nium Development Goals and identifyi its baselines
and targets. The LGUs play a crucial role in achieving
the MDGs at the community level. The aforemen-
tioned commitments, among others, emphasize
the need for LGUs to partner with national govern-
ment agencies, private institutions, Non-Government
Organizations/People’s Organizations, and other
critical stakeholders in performing its responsibilities.
As identified in the Medium Term Philippine Develop-
ment Plan (MTPDP 2004-2010) for shelter, one of
the key challenges to ensure shelter security for every
Filipino family is the strengthening of the capacity
of housing institutions, shelter agencies and LGUs.
Despite the institutional reforms, there is still a long
and tedious process of securing permits and licenses
for housing and urban development projects. Better
coordination among the shelter agencies must be
established especially as some LGUs have yet to show
competence to fully assume their devolved functions.
Thus capacity development of LGUs is crucial and
indispensable. LGUs should be ready to face the
challenges posed by rapid urbanization and have the
ability to pro-actively plan and manage their growing
population with its increasing demand for services.
From planning to implementation, secure tenure and
housing as well as capacity building from external
agencies for the LGUs using rights-based approaches
must be ensured considering the fact that the national
government has limited resources. The LGUs must
be assisted through systemic reforms to develop
plans and install policies that would reduce/stabilize
the growing number of slums in urban areas as well
as improve the lives of people living in the slums.
Managing urban growth and achieving the MDGs at
the local level are no simple tasks. Thus, enhanced
capacity of leaders and local urban planners is impera-
tive in order for LGUs to transform their growing
population into real human capital that would bring
about economic growth and sustainable development.
UN-Habitat is a strong partner of the government,
especially HUDCC and DILG, in promoting sustainable
urbanization and in realizing the Habitat Agenda and
the MDGs. Other urban sector stakeholders, espe-
cially the civil society and business sector, are equally
important partners in working towards the same end.
The CCA has noted that “the UN system has a pivotal
role to play in working with stakeholders to generate
demonstrable results. As a universal duty-bearer, and
with its diversity of mandates, the UN is in the best
position to contribute to setting up structures and
mechanisms for popular participation in governance.
Popular participation, including in decision-making, is
covered by universal covenants signed by UN mem-
bers, including the
Philippines. The UN similarly has a comparative advan-
tage in capacity development and in implementing
participatory technologies appropriate to the Filipino
setting. Moreover, the UN has the ability to mobi-
lise resources to engage the state, civil society and
the private sector to work together collaboratively.
SITUATION ANALYSIS
STATISTICAL OVERVIEW
Urbanisation (2008)
Total population: 90 m
Urban population: 58 m (65 %)
Annual growth rates (2005-2010)
National: 1.9 %
Urban: 3.0 %
Major cities (2008)
Manila: 11 m
Davao: 1.4 m
Cebu: 830 000
Source: UN DESA
Slum indicators
Slum to urban population: 44 %
% urban population with access to:
Improved water: 96 %
Piped water: 67 %
Improved sanitation: 95 %
Sufficient living area: NA
Durable housing: 74 %
Source: UN-HABITAT, 2003













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FOCUS AREA 2: PARTICIPATORY
URBAN PLANNING, MANAGEMENT
AND GOVERNANCE

The Housing and Urban Development Coordinat-
ing Council (HUDCC) was created in 1986 as the
lead agency to formulate national objectives, poli-
cies and strategies for housing and urban develop-
ment, provide directions to ensure rational land
use for the equitable distribution and enjoyment of
development benefits, to be implemented through
a variety of government housing agencies: the
National Housing Authority (NHA), the Home Guar-
anty Corporation (HGC), National Home Mortgage
Finance Corporation (NHMFC), and the Housing and
Land Use Regulatory Board (HLURB) to ensure the
accomplishment of the National Shelter Program.
Decentralization, following enactment of the LGC,
has paved the way for LGUs to be responsible in
planning for and managing local resources. The
LGC requires LGUs to prepare comprehensive land
use plans (CLUP) and comprehensive development
plans (CDP). Further, the Urban Development and
Housing Act mandated LGUs to perform tasks that
would ensure the achievement of the vision to a)
prioritize provision of decent shelter to the poor-
est of the poor; b) provide the framework for the
use and development of urban lands; c) encourage
people and community involvements and initiatives
in urban development and shelter construction; d)
improve and maximize local government participa-
tion especially in socialized housing; and, e) tap
private sector resources for socialized housing.
The Philippine Government, under the leadership
of President Arroyo, remains committed in clear-cut
goals, strategies and action plans as priorities laid
down in its Medium Term Philippine Development
Plan 2004-2010. It is also committed to achieve the
MDGs which provides the framework in formulat-
ing the Plan’s social commitments and in identify-
ing its programs and projects in the Medium-Term
Public Investment Program (MTPIP). In line with
improving urban governance, the MTPDP’s section
for shelter targets the strengthening of institutional
capacity of housing agencies and local government
units. This was premised on the need to improve
coordination among agencies involved in hous-
ing and land development whilst reflecting on the
inability of some LGUs to fully assume their devolved
function and responsibility in urban development,
planning, finance, implementation and manage-
ment in the delivery of housing and urban services.
The national government through the MTPDP also
aims at creating space for participatory urban planning
and management by directing the establishment/
creation of Local Housing Boards (LHBs) composed
of multi-sector representatives, in all cities and
© UN-HABITAT/Cris Rollo
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
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municipalities. However, many cities and munici-
palities have yet to fully appreciate the value and
contribution of the LHB as an instrument for sustain-
able urbanization and good governance, thus very
few LHBs in the country are active and functional.
The DILG through the Peace and Order Councils
provide instruments for improving the governance
of crime and violence-related issues in the urban
contexts. The Council, coordinated by the City-
Mayor, involves a large range of local stakeholders,
including the representative of the Barangays, and
work in cooperation with the Philippine National
Police (PNP). These Councils are supposed to articu-
late actions for the effective crime reduction and
violence prevention at the city and municipal level.
The 2005-2009 UNDAF in the Philippines includes
good governance as one of the five priority areas
of cooperation, where country program outcome
#2 targets that by 2009, national, sub-national and
local institutions promote and practice transparency,
accountability, gender equity and participatory govern-
ance for greater accessibility and cost-effectiveness
in the delivery of programmes and services toward
improved human development, especially for poor
and vulnerable groups. Towards this end, UN-Habitat
Philippines has implemented projects that promoted
participatory governance especially in planning for
and implementing shelter development at the local
level resulting in pro-poor shelter delivery pro-
grams of LGUs. In close coordination with HUDCC,
the tested participatory shelter planning process/
approaches could be replicated at the national scale.
FOCUS AREA 3: PRO-POOR
LAND AND HOUSING
The country is still beset with a huge backlog
in providing for land security and housing for
the poor. In the face of high rates of popula-
tion increase and with urban areas continuing
to be magnets of hope for economic opportuni-
ties, the demand for affordable land and hous-
ing in the Philippines remains a challenge.
Based on HUDCC reports and projections, the cumula-
tive housing need (backlog and formation of new
household) of the country for 2005-2010 is likely to
reach 3,756,072. Geographically, concentration of
this housing demand is found in Southern Taga-
log, Metro Manila, and Central Luzon accounting
to 56%, while Visayas and Mindanao accounts for
21% and 23% of the total need, respectively. The
current MTPDP has targeted the provision of housing
for a total of 1,145,668 households valued at Php
217.04 billion. “Socialized housing” for the bottom
30% income group who do not have secure tenure
and housing, accounts for 68% of the total target.
Over the years, the government has engaged and
instituted various programs and projects to address
pro-poor land security and housing. During the
Estrada Administration, the government through
HUDCC formulated a two-pronged program, a
sustainable private sector-led and government-led
housing program. The Sustainable Private Sector-Led
Program sought to operate market mechanisms to
ensure efficient utilization of resources and provision
of quality housing units. On the other hand, the Gov-
ernment-Led Housing Program intended to acceler-
ate the provision of security of tenure to informal
settlers, by synchronizing the relocation of informal
settlers with the implementation of major govern-
ment programs and projects, such as the provision of
necessary economic and social services. To expand
the coverage of the programs, HUDCC provided LGUs
with funds for their housing programs, and directed
them to complete their Comprehensive Land Use
Plans (CLUPs) to identify areas for socialized housing.
The present administration led by President Arroyo
sustains its support and commitment to UN-Habi-
tat’s global campaign on “Secure Tenure and Good
Urban Governance” through an Asset Reform
Program that will benefit the poor. In this pro-
gram, HUDCC was tasked to identify idle gov-
ernment lands suitable for housing for possible
disposition to qualified beneficiaries; to reform
and rationalize the Community Mortgage Pro-
gram; and implement the resettlement program
for the Northrail and Southrail Linkage project.
HUDCC, in close coordination with other key shelter
agencies, has also promoted the strict compli-
ance by Private Sector Subdivision Developers to
the 20% Balanced Housing provision mandated
in RA 7279 or UDHA. This provision of the UDHA
is meant to increase the country’s housing stock,
promote inclusive shelter provision, and ensure
availability of affordable land and housing.
The Philippine land market, however, still does not
satisfy the needs of the poor for secure tenure. Prices
of land in urban areas remain unaffordable for families
whose income falls within the bottom 30% of the
income strata. The Annual Poverty Indicator Survey of
the government (2004) revealed that 4 out of every 10
Filipino families do not own their house and lot. Such
a scenario is evidenced by the proliferation of informal
settlers in urban and peri-urban areas throughout the
country, as well by the increasing number of families
sharing dwelling units. This scenario further aggra-
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vates the deteriorating quality of life of the poor as
cramped spaces result in higher incidence of sickness
and violence that mostly affects women and children.
Apart from income poverty, there are other bottle-
necks and issues hampering pro-poor land and hous-
ing programs in the Philippines. These include: high
transaction costs due to the confusing and unclear
land use policies, non-cooperation of land owners to
engage in the CMP program, misinterpretation and/or
non-implementation of LGUs of the provisions set
forth by the UDHA and its implementing rules and
regulations. Moreover, most LGUs do not have shelter
plans and programs that would facilitate pro-active
planning and results-based targeting of their local
shelter concerns, resulting in non-appropriation of
budgets thus increasing land and housing backlogs.
Another major concern for the Philippines is the
provision of land and housing to internally displaced
persons/families due to natural hazards and armed
conflicts. This is especially true for the Bicol Region
and in ARMM in Mindanao. In the Bicol Region,
when 2 super typhoons struck the country in 2006,
more than 10,000 families from the province of Albay
alone had to be permanently resettled. After more
than a year of combined public and private develop-
ment and rehabilitation efforts, around 75% of the
affected families have yet to be provided land and
permanent housing. The National Disaster Coordinat-
ing Council and LGUs in Albay have expressed the
need for UN-Habitat to provide technical assistance
in preparing their local shelter plans that promotes
creation of sustainable and risk resilient communities
and human settlements in the context of the changed
landscape of the province and considering the natural
hazards/risks that continue to threaten the province.
In the ARMM, armed conflicts that have already lasted
for 35 years in Mindanao have displaced a large
number of Filipino families from their settlements.
Cotabato City, the ARMM capital, has seen its popula-
tion double in size within the last five years mainly
due to migration of IDPs. Conflict Prevention and
Peace Building as one of the priority areas of UNDAF,
UN interventions are focused on strengthening the
policy environment; building capacity for Government,
civil society, former combatants and communities;
and ensuring the rights of those affected by armed
conflict. UN-Habitat, as part of and in cooperation
with the UNCT, could contribute to the attainment
of the UNDAF Outcome in the said priority area
specifically in the CP Outcome which targets that by
2009, individuals and communities affected by armed
conflict have improved access to increased incomes,
basic social services and participation in governance.
While peace building efforts have already gained
successes in Mindanao, there is still a need to provide
land development and housing assistance to families
in post conflict areas, in addition to safety and secu-
rity improvement for the most vulnerable groups,
including IDPs and migrants. Proactive intervention
through integrated shelter provision is very crucial in
sustaining peace and development. Improved access
to assets such as land and housing and mainstream-
ing community-led actions on shelter development
facilitates poverty alleviation. It is common knowledge
that poverty is one of the major causes of area conflict
resulting in violence and vulnerabilities in Mindanao
FOCUS AREA 4:
ENVIRONMENTALLY SOUND URBAN
INFRASTRUCTURE AND SERVICES
The Common Country Assessment report noted
that the social services expenditures as a share of
the country’s GDP fell from 5.46 percent in 1997 to
4.25 percent in 2003. The report further noted major
gaps in women’s health care and nutrition which
arise from women’s poor health-seeking behavior;
lack of empowerment, which results in widespread
gender-based violence; and health and service delivery
that often times does not comply with prescribed
medical standards. The assessment also stressed
significant issues in education that include wide
disparities in retaining children in the secondary level,
between urban and rural areas, rich and poor regions;
low quality, arising from unwieldy class sizes and
congested curriculum; and poor access to and quality
of early childhood care and development services, with
at least two-thirds of 3- to 5-year-olds not enrolled.
The Philippines mid-term progress report on the
MDGs for 2007 reported that as of 2004, 80.2% of
total households have access to safe drinking water
while proportion of households with sanitary toilet
is at 86.2%. Despite the high probability for the
Philippines to attain its MDG targets on the improve-
ment of access to water and sanitary toilet, there is
still a need to ensure that this progress translates to
services for the country’s slum dwellers. As stressed
in the CCA, 36% of water for urban slum dwellers
is contaminated at the point of consumption, while
another 17% is contaminated at the source because
of improper transport, handling and storage.
The responsibility to effectively provide for basic
urban infrastructure and services is lodged at the
LGUs as mandated in Section 17 of the LGC. Weak-
nesses, however, have been shown by most LGUs
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
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in the effective delivery of basic services for their
constituents. Local capacities to finance develop-
ment of service delivery remain weak as most LGUs
remain to be largely dependent on revenue transfers.
Though mandated in the UDHA that provision
of basic services for resettlement sites should be
ensured by the government, there are resettlement
sites which continue to be in blighted and in poor
condition as access to basic services such as water,
electricity, and drainage are mostly not prioritized
and yet to be completed or worse unplanned at all.
UNDAF Outcome 2 anticipates, by 2009, increased
and more equitable access to and utilisation of quality,
integrated and sustainable basic social services by the
poor and vulnerable. UN-Habitat, through its IMPACT
and Localizing the MDGs projects, contributes to the
attainment of this outcome by building the capaci-
ties of LGUs in planning and implementing integrated
shelter development while engaging the private-sector
and the communities themselves in working towards
the improvement of basic infrastructures and services.
FOCUS AREA 5: HUMAN
SETTLEMENTS FINANCE SYSTEMS
In realizing the Habitat Agenda and attaining sustain-
able urbanization, the large demand for secure tenure
and housing in the Philippines poses a great challenge
to the providers of financing support. The present
MTPDP target of 30% to meet the housing backlog
(2005-2010) should ideally cover a sizable amount
of the demand for socialized housing, and partly
low-cost housing according to HUDCC. Limitations
in government resources and weaknesses in financing
systems, however, continue to dampen the realization
of these targets. The low-cost housing beneficiar-
ies are mainly members of pension funds such as
the Home Development Mutual Fund more known
as Pag-Ibig Fund, the Social Security System and the
Government Service Insurance System. Those urban
poor whose members may be engaged in formal
employment have a higher chance of accessing shelter
financing offered by the said institutions. The bulk
of the urban poor who are non-members, therefore,
have limited access to financing as the formal finance
market mainly works for the upper and middle income
households. In the last two years, the government
initiated and opened financing systems to support
socialized housing to address the demand and paying
capacity of the poor. Currently, the government
finance programs for socialized housing are as follows:
1) National Housing Authori-
ty’s Resettlement Program
2) Socialized Housing Finance Corporation’s
Community Mortgage Program (CMP)
3) ADB-assisted Development of Poor Urban
Communities Project or DPUCSP supported by
UN-Habitat/Cities Alliance IMPACT project
4) Home Development Mutual
Funded user financing
“Except for the HDMF home lending program, the
other three shelter programs are funded by budget-
ary appropriations or development loans. Loans for
© UN-HABITAT/Cris Rollo
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housing are provided at easy terms, with subsidized
interest rates and a maximum maturity of 30 years.
CMP loans have a fixed rate of 6%. HDMF home
lending program for socialized housing loans is also at
a subsidized rate of 6% but the rate is reviewed every
five years. The Resettlement Program of the NHA
provides a combination of direct subsidy, loan com-
ponent with 6% interest rate, and loan component
which is interest free. On the other hand, the DPUCSP
is the first sector loan of the Philippine Government
that targets specifically the urban poor. Unlike the
other three programs, DPUCSP is also the first major
attempt to adopt market-based mechanisms utilizing
market interest rates as well as bank and non-bank
financing institutions to provide shelter finance for
the poor. In sum, the present state of government
finance programs for socialized housing shows a bias
toward providing housing assistance at subsidized
interest rates. This is reflected in the following poli-
cies: (1) the dominance of finance-based subsidy; and
(2) the practice among pension funds of cross-subsi-
dization, where higher income borrowers subsidize
lower income borrowers. Unlike in the past where
the national government assumes all responsibility
on financing, there are now greater efforts toward
localization of housing delivery. This means greater
involvement of LGU assets and resources for the
delivery of socialized housing on a larger scale” .
The Community Mortgage Program (CMP) is the most
relevant program for the socialized housing sector. It is
a loan window for the sector for land acquisition, site
development and housing construction managed by
the National Home Mortgage and Finance Corpora-
tion. The community-based organizations (CBO) or
Homeowner’s Associations (HOA) are organized by
so-called originators (can be NGOs or LGUs) to put
together the requirements by the NHMFC at least
for the land acquisition phase. However, it was not
sustained due to inefficiency in the system and the
declined government subsidy, not to mention the
alleged corruption that beset the institution. Thus,
1997 figures showed that only 12% of the communi-
ties which borrowed for land acquisition progressed to
the second level of site development loan because of
affordability constraint. Because of this, communities
remained blighted even after they have acquired the
land. Despite these, the CMP had the highest repay-
ment performance among the different government
housing projects because of the social preparation
done by the NGOs (although limited) and the phased
availment of the loan by the CBOs which best suited
the paying capacity of the socialized housing sector.
The SHFC was created in 2004 as a wholly-owned
subsidiary of the NHMFC to design and implement
housing finance programs on socialized housing and
to cater specifically to the needs of the formal and
informal sectors comprising the poor and low-income
families of the country. SHFC is tasked to manage
the Abot Kaya Pabahay Fund and the Community
Mortgage Program, taking over these functions from
the NHMFC. SHFC’s mandates include encourag-
ing maximum participation by stakeholders such
as the LGUs, NGOs, and POs in socialized housing;
institutionalizing and promoting self-help housing
methods, and providing a strong and sustainable
socialized housing finance system. As the agency now
responsible for the CMP implementation, it is the
only one lending for land acquisition. It has a budget
allocation of P500 M per year from government
allocation. It is now gearing towards the localiza-
tion of the CMP which means that the accreditation
of urban poor associations which have signified the
interest to borrow will now be facilitated by the Local
Government Units (LGUs) to hasten processing.
Early 2008, the Monetary Board of the Philippine
Central Bank announced its approval of the Housing
Microfinance product that aims to address the shelter
needs of the economically active poor. According to
the BSP announcement, this Housing Microfinance
Product involves the application of microfinance prin-
ciples and best practices to the provision of housing
finance for home improvements, house construction
as well as house/ lot acquisition. The home improve-
ment loans have a maximum of Php 150,000, similar
to microfinance loans, while house construction and
acquisition may be up to Php 300,000. In recog-
nizing the product as a type of microfinance loan,
it will also enjoy the incentives granted to regular
microfinance loans such as no collateral requirements
or the acceptance of collateral substitutes, as well as
simpler documentary requirements. This addresses
the usual barriers that the poor face in accessing
housing finance. This approval provides a signifi-
cant push to the government’s efforts of increas-
ing pro-poor shelter and addressing the country’s
housing backlog. Further the BSP announcement
stated that given this approval, banks with micro-
finance operations are provided the opportunity to
complement their present microfinance operations by
offering this new product, to reduce the risk of busi-
ness loans being applied to housing and to diversify
their portfolios. The housing microfinance loans will
also be considered as alternative compliance to the
mandatory credit allocation to agrarian reform and
agriculture activities as required by Presidential Decree
717. One distinct feature of this financing product
is the possible use of secure tenure instruments as
collateral substitutes. In the absence of a land title,
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
12
these legal instruments effectively provide proof of
legal use, possession or ownership of a property.
This was prompted following the request of HUDCC
which is the executing agency for the DPUCSP
and UN-Habitat played the implementing agency
role for the capacity building component through
its IMPACT project. The IMPACT project has also
made a breakthrough in shelter financing where the
direct lending to Home-Owners Association have
been approved by the Development Bank of the
Philippines using qualitative capacity-based lending
modalities and cash flow analysis in determining loan
approval. The bigger challenge now is institutional-
izing this gain where the formal banking institution
would fully facilitate and cater the needs of the poor
who are generally operating as informal sector.
In defining the strategy and implementa-
tion of the HCPD, gender and youth issues
are considered as cross-cutting concerns.
GENDER EQUALITY IN HUMAN SETTLEMENTS
The Philippines has available sex disaggregated data
through the NSCB and NSO. These data are criti-
cal in mainstreaming gender concerns and issues
in development planning and programming.
There are currently 37.9 million women in the
country. 51% of these women belonged to the
reproductive age group (15-49) based on latest
Census of Population and Housing (CPH) of the
National Statistics Office. Female-headed house-
holds account only for 5.4% of the total house-
holds in the country. About 48 percent of women
15 to 49 years were engaged in gainful activi-
ties and 52 percent in non-gainful activities.
Relative to housing, the same CPH results revealed
that majority of the occupied housing units with at
least one woman 15 to 49 years old (68.2 percent)
had roofs made of galvanized iron/aluminum, 21.5
percent had cogon/nipa/anahaw, and 4.4 percent had
half galvanized iron/half concrete. As to the construc-
tion materials of the outer walls, about 33.0 percent
used concrete/brick/stone, 22.7 percent had wood,
and 21.1 percent had bamboo / sawali / cogon / nipa.
There have been findings that rural-to-urban migrants
increasingly consist of unmarried women below 25
years old and married young women in their peak
childbearing ages (25-29 years old) (UNFPA, 1999).
They are propelled to the cities by their limited
participation in income-earning opportunities in
their communities of origin. They usually end up in
jobs in the service sector, where they work longer
hours for lesser remuneration according to a report
presented by the National Population Commission.
With increasing demand for basic services in
urban areas, women’s health and rights to access
services should be primarily considered in urban
development planning and management.
Migrant women as well as women among IDPs
due to the armed conflict should also be recog-
nized as vulnerable groups to deal with. Inter-
nal migrations and displacement in post-conflict
context, like in some cities of the ARMM region,
may worsen the vulnerability of these groups
especially in a rapidly urbanizing context.
YOUTH IN THE PHILIPPINES
The Youth in Nation Building Act was passed
into law in 1994. It enshrined four princi-
ples for youth development in the country:
Promotion and protection of the physical,
moral, spiritual, intellectual and social well-
being of youth to the end that youth realize
their potential for improving the quality of life;
Inculcation in youth of patriotism, nationalism
and other basic desirable values to infuse in
them faith in the Creator, belief in the sanctity
of life and dignity of the human person,
conviction for the strength and unity of the
family and adherence to truth and justice;
Encouragement of youth involvement in character-
building and development activities for civic
efficiency, stewardship of natural resources,
agricultural and industrial productivity, and an
understanding of world economic commitments
on tariffs and trade and participation in
structures for policy-making and programme
implementation to reduce the incidence of poverty
and accelerate socioeconomic development; and
Mobilization of youth’s abilities, talents and skills
and redirecting their creativity, inventive genius
and wellspring of enthusiasm and hope for
In the face of rapid urbanization, Filipino youths are
faced with challenges and they need to be protected
as well as mainstreamed in the decision making
process that would create significant effects in their
quality of life. Given these, UN-Habitat across its
initiative will ensure that approaches and strate-
gies would cater to the needs of the youth sector
especially the urban youths. UN-Habitat will also
reinforce their capacity to be key-actor of the social
change in cities, including the areas either directly
or indirectly affected by the armed violence.




COUNTRY PROGRAMME DOCUMENT 2008 – 2009 13
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(
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COUNTRY PROGRAMME DOCUMENT 2008 – 2009 15
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United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
16
STRATEGY
UN-HABITAT’S PROPOSED
STRATEGY FOR THE SECTOR
UN-Habitat’s country specific strategy is guided by
the UN-Habitat’s global Medium Term Strategic and
Institutional Plan and more specific policies, such
as the Strategic Policy on Human Settlements and
Crisis. The Medium Term Strategic Plan (MTSIP) for
2008 – 2013 is UN-HABITAT’s institutional response
to meet the “Urban Challenge” and in realizing the
MDG targets. The MTSIP is focused on the following
mutually reinforcing focus areas to support attainment
of the overall objective of sustainable urbanization:
Focus area 1 – Advocacy, monitoring,
and partnerships
Focus area 2 – Participatory urban
planning, management and govern-
ance
Focus area 3 – Pro-poor land and housing
Focus area 4 – Environmentally-sound and affordable
basic infrastructure and services
Focus area 5 – Strengthening human
settlements finance systems
Focus area 6 – Excellence in management
Considering the analysis earlier presented, and
aligning with the Philippine Government MTPDP for
shelter, UN-Habitat Philippines will deliver outputs to
contribute across the MTSIP identified focus areas.
The country programme’s development goal is “to
effectively contribute to the urban and shelter sector
of the Philippines in achieving sustainable urbaniza-
tion and in meeting the MDG goals and targets”.
As strategies to achieve the development goal,
UN-Habitat will respond to Philippine part-
ner requests for technical support to jointly
develop projects and mobilize resources target-
ing the following programme components:
A. Capacity Building/Institution Building (IB). This will
involve the adaptation of UN-Habitat Training and
Capacity Building Branch toolkits and national dis-
semination of UN-Habitat Asia Regional Best Prac-
tice approaches as foundations for comprehensive
and integrated capacity development programmes
to strengthen key national government agencies,
LGUs of cities and municipalities, national/regional
and city Training and Research Institutions, as well
as civil society groups (i.e. NGOs, academe, busi-
ness, religious, and people’s organizations) in the
urban and urbanizing areas. The objective is to
leave behind national and city institutions that have
capacities to implement their respective mandates
related to the MDGs (i.e. poverty, shelter, disaster
mitigation, prevention of violence and crime, etc.),
monitor progress, and make improvements and
innovations to sustain the gains at the national
and local levels. Capability building interventions
will involve formal training, installation of organi-
zational and financial policies and systems, and
exposure trips/learning exchanges. This shall result
to the development of “resource” cities/municipali-
COUNTRY PROGRAMME DOCUMENT 2008 – 2009 17
P
H
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© UN-HABITAT/Cris Rollo
ties, civil society groups and people’s organizations
that can act as trainers and facilitators to more
cities and municipalities, thus hasten the achieve-
ment of the MDGs. On water and sanitation, the
WSS II project will undertake capacity building
activities through its Human Values Based Water,
Sanitation and Hygiene Education (HVWSHE) pro-
gramme in partnership with SEAMEO (South-East
Asian Ministers Education Organisation)-Innotech
and Manila Water. Activities will focus around
addressing non-revenue water (NRW) and water
theft, complementing wastewater and desludging
activities via an information campaign, sustaining/
improving after sales service, sustaining collec-
tion efficiency and improving billed volume.
B. Development, Implementation, and Dissemination
of Innovative/Trailblazing Programs/Projects – This
strategy shall pursue the development of innovative
and cutting-edge schemes and demonstrations
on shelter and good urban governance that are
gender-responsive and rights-based. Project imple-
mentation shall be documented by UN-Habitat,
and then disseminated to influence reforms on
policy and program at the local and national levels.
C. Dissemination of L-MDG Knowledge and Practices
– Given that the L-MDG program of the Philip-
pines has been cited as a global best practice, the
UN-Habitat Philippines is supporting DILG and
other partners in disseminating and localizing the
lessons learned through its toolkits and knowl-
edge products and activities in the remaining 105
cities. The outputs achieved by the UN-Habitat
resource cities shall likewise be committed to be
achieved in these cities. These are: a) establish-
ment of local MDG structures and mechanisms;
b) establishment of knowledge management
system; c) establishment of system for network-
ing and linkaging for resource mobilization. The
over-all impact is that the MDG targets for 2015
are mainstreamed in the city plans and budgets.
Aside from dissemination at the country level,
UN-Habitat shall pursue opportunities to share
and disseminate the “MDG Localization technol-
ogy” at the regional level – Asia-Pacific Region.
D. Monitoring of Urbanization Indices and Trends–
Given that the urbanization aspect of the cities
remain an area for major work for all institu-
tions, UN-Habitat shall attempt integration of
this aspect in the plans and budget of national
and local governments. This shall be initiated by
working with the DILG, NEDA, and HUDCC to
review and strengthen city government data bases
to capture sustainability, livability, competitive-
ness, and security dimensions of urbanization.
Each dimension has its indicators that will clearly
define the extent by which a city is urbanizing.
At present, population is the only indicator of
urbanization. Broadening the concept and defini-
tion of urbanization will help the city define its
normative and programmatic directions. Lessons
learned and indicators will be shared at the local
and national level as well as with the UN-Habitat
Monitoring Division’s Global Indicators Programme.
E. Expanding Business Sector Involvement to achieve
MDG 7 Target 10 and 11 – This involves the forma-
tion and maintenance of a business sector consen-
sus group that will serve as the think tank, resource
pool, and monitor of the extent and quality of
business sector involvement in the achievement of
the MDGs and other international commitments
(i.e. CEDAW, etc.) either through their core busi-
ness or corporate social responsibility programs.
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
18
PROGRAMME OBJECTIVES
At the end of the term of implementation of this
HCPD, the following objectives should have been
achieved:
1. National key shelter agencies (i.e. HUDCC, HLURB,
etc.) with frameworks for capacity building of the
sector, regulatory and monitoring framework, and
participatory/positive engagement of the sector,
national city agencies (i.e. DILG, LCP, and Metro
Manila League of Cities) with defined framework
on urban development and urbanization, and
national agencies on disaster like the NDCC and
DSWD with capacities to undertake disaster-based
Shelter Planning and Estate Management.
2. LGUs (cities and municipalities) with increased
knowledge and capacity in addressing Urbaniza-
tion issues and implementing urban development
approaches through the Shelter Plans that is con-
sistent with the City Development Strategy (CDS)
and Comprehensive Land Use Plans (CLUP), and
city/municipality development plans and budgets,
and monitoring systems, according to and support-
ive of the MDG goals and targets.
3. Innovative and trailblazing projects documented
and disseminated in more areas for replication
and/or scaling-up, and used to influence policy and
program reforms both at the local and national
levels.
4. LGUs (cities and municipalities) and people’s orga-
nizations as “resource” institutions which can be-
come trainers of other cities and people’s organiza-
tions to hasten the achievement of the MDGs.
5. Increased and more strategic involvement of the
business sector in achieving the MDG goals and
targets through their core business and/or corpo-
rate social responsibility programs.
6. Strengthened and functional Philippine Urban Fo-
rum (PUF) with clear mandate, roles, structure, and
systems to serve as platform for discussion, genera-
tion of concepts/schemes/approaches, and action
on sustainable urbanization issues.
© UN-HABITAT/Angie Neo
COUNTRY PROGRAMME DOCUMENT 2008 – 2009 19
P
H
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IDENTIFIED SECTOR PRIORITIES
LOCAL URBAN GOVERNANCE
Development, Implementation, and Dissemination
of Innovative/Trailblazing Programs/Projects
Dissemination of L-MDG knowledge and practices
Monitoring of Urbanization Information and Trends
Development of strategies for the
prevention of violence and crime




ENVIRONMENTAL DISASTER
MANAGEMENT AND RECOVERY
Integration of UN-Habitat
Philippines activities
into the Water for Asian
Cities Programmes

LAND TENURE
Capacity building / Institution Building
for government (both national and
local) in identifying other options for
land acquisition in addressing the
need of the socialized housing sector

SHELTER, BASIC SERVICES, AND INFRASTRUCTURE
Building capacities of LGUs while promoting
the role of CBOs in developing integrated
approaches to shelter development.

Given the identified development goal, UN-Habitat Philippines targets to work and focus on the sub-
sectors namely: land tenure; local urban governance; shelter, basic services, and infrastructure; environ-
mental disaster management and recovery; and, safety and security in cities..
IDENTIFIED SECTOR PRIORITIES
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
20
KEY PRINCIPLES
UN-Habitat Philippines is currently working closely with
the HUDCC and the DILG, the 2 major national gov-
ernment agency partners responsible for urban sector
management. The partnership with DENR is evolving
with more SCP-LEPM programmes being undertaken.
Specific projects being and to be undertaken by UN-
Habitat will determine which agency will become the
Executing Agency of said project. For instance, the
IMPACT Project is being managed and overseen by
HUDCC as the Executing Agency because the project
is on shelter and slum upgrading. UN-HABITAT WSS II
will work closely with Manila Water and SEAMEO In-
notech. UN-Habitat Philippines shall support the Water
and Sanitation Team from the headquarters in Nairobi
through coordination and monitoring of this project.
The MDG Localization project works closely with the
DILG and LGUs in mainstreaming the MDGs in local
urban governance systems.
At present, the Board of Advisors serves as the senior
policy review group of the agency in the Philippines
which provides or comments on the directions as well
as performance of the agency’s functions. With the
planned revival or re-establishment of the Philippine
Urban Forum (PUF), the Board of Advisors will be ex-
panded to constitute the PUF. Institutional link with the
UNCT shall be maintained consistent with the MOU
signed between UN-Habitat and UNDP.
In line with UN-HABITAT’s MTSIP approach of align-
ment of its normative and operational activities at
country level, the various substantive and normative
units at its headquarters and regional offices will
provide in-kind support and expertise to the respective
areas of expertise through policy and technical advice,
review of project activities, field missions, documenta-
tion of lessons learned and sharing of relevant inter-
national experiences. For example, the Shelter Branch
of UN-HABITAT, through its Land Tenure and Property
Administration Section and its Housing Policy Section,
will provide support to the implementation of result 5
in Programme component 1 in section 3.4 below pro-
viding a total of 2 work months in kind contribution.
INFORMATION
UN-Habitat Philippines has developed its institutional
and program/project brochures and has been continu-
ally being disseminated to partners. UN-Habitat has
also developed knowledge products like the City MDG
Localization Toolkit based on the Naga City experience,
MDG-focused BDP Planning Manual using the Rights-
Based Approach based on the Butuan City experience,
MDG-focused Disaster Management Manuals, the
CALL 2015 Manual as well as other IEC materials on
the MDGs. in coordination with various partners. It
has also facilitated regular city-to-city knowledge shar-
ing through the quarterly business meetings and proj-
ect meetings. The UN-Habitat web site (www.unhabi-
tat.org.ph) is accessible in the internet and contains
updated information of the programmes, directions,
major events, plans and partners. It is linked with the
UN-Habitat HQ and ROAP web sites.
IMPLEMENTATION ARRANGEMENTS
COUNTRY PROGRAMME DOCUMENT 2008 – 2009 21
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(
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COUNTRY PROGRAMME DOCUMENT 2008 – 2009 23
R
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/

R
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B
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T
COUNTRY PROGRAMME DOCUMENT 2008 – 2009 25
P
H
I
L
I
P
P
I
N
E
S
World Urbanization Prospects: 2005 Revision
Common Country Assessment, UNDAF 2005-2009
Housing and Urban Development Coordinating Council www.hudcc.gov.ph
Urban Development and Housing Act of the Philippines
Local Government Code of the Philippines
National Statistics Office www.census.gov.ph
National Statistics Office, Census of Population and Housing
National Statistics Coordinating Board www.nscb.gov.ph
Philippine Environmental Analysis 2005, Asian Development Bank www.adb.org
Land Issues in Poverty Reduction Strategies and Development Agenda:
Philippines, PIDS Country Paper by G. Llanto and M. Ballesteros
Bangko Sentral ng Pilipinas
State of the Philippine Population Report 2004
BIBLIOGRAPHY
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
26
ACRONYMS
ADB Asian Development Bank
BSP Bangko Sentral and Pilipinas
CA Cities Alliance
CALL 2015 Citizens Action and Local Leadership to Achieve the MDGs in 2015 Project
CAP Community Action Plans
CBO Community-Based Organizations
CCA Common Country Assessment
CCCI Cities and Climate Change Initiative
CDP Comprehensive Development Plan
CDS City Development Strategy
CLUP Comprehensive Land Use Plan
CMP Community Mortgage Program
CPH Census of Population and Housing
CWS Cities Without slums Strategy
DBP Development Bank of the Philippines
DBP-AO Development Bank of the Philippines Account Officer
DGTTF Democratic Governance Thematic Trust Fund
DILG Department of Interior and Local Government
DPUCSP Development of Poor Urban Communities Sector Project
EC European Commission
GUG Good Urban Governance
HCPD Habitat Country Programme Document
HGC Home Guaranty Corporation
HLURB Housing and Land Use Regulatory Board
HoA Homeowners Association
HUDCC Housing and Urban Development Coordinating Council
IB Institution Building
IDP Internally Displaced Person
IMPACT Integrated Approaches to Poverty Reduction at the Neighbourhood
Level – Cities Without Slums Initiative project
LCP League of Cities of the Philippines
LGA Local Government Academy
LGC Local Government Code
COUNTRY PROGRAMME DOCUMENT 2008 – 2009 27
P
H
I
L
I
P
P
I
N
E
S
LGUIRA Local Government Unit Internal Revenue Allocation
LGU Local Government Unit
MDG Millennium Development Goals
MEET the MDGs Mitigating the Effects of External Threats to the MDGs
MFI Micro-finance Institutions
MTPDP Medium Term Philippine Development Plan
MTPIP Medium-Term Public Investment Program
MTSIP Medium Term Strategic and Institutional Plan 2008-2013
NDCC National Disaster Coordinating Council
NEDA National Economic and Development Authority
NGO Non-government Organization
NHA National Housing Authority
NHMFC National Home Mortgage Finance Corporation
NSCB National Statistical Coordination Board
NSO National Statistics Office
PBSP Philippine Business for Social Progress
PEF Peace and Equity Foundation
PNP Philippine National Police
PUF Philippine Urban Forum
RA 7279 Republic Act 7279 (Urban Development and Housing Act)
SCP-LEPM Sustainable Cities Program – Local Environmental Planning and Management
SEAMEO –
Innotech South-East Asian Ministers Education Organisation
Regional Center for Educational Innovation and Technology
SHFC Socialized Housing Finance Corporation
SHFC Socialized Housing Finance Corporation
TWG Technical Working Group
UDHA Urban Development and Housing Act (RA 7279)
UN-HABITAT United Nations Human Settlements Programme
UNDAF United Nations Development Assistance Framework
UNDP United Nations Development Programme
WB World Bank
United Nations Human Settlements Programme
Regional Office for Asia and the Pacific
28



Regional Office for Asia and the Pacific
ACROS Fukuoka Building, 8th Floor
1-1-1 Tenjin, Chuo-ku
Fukuoka 810-0001
Japan




Web: www.fukuoka.unhabitat.org
E-mail : habitat.fukuoka@unhabitat.org
Tel : (81-92)724-7121/23 Fax : (81-92)724-7124
Habitat Programme Manager in Philippines:
Mrs. Eden Garde (eden.garde@undp.org)
Located in South Eastern Asia, the Philip-
pines is an archipelago with a total land area of
300,000 square kilometers. GDP per capita of
the country is US$ 1,176 and it is classified by
the World Bank as middle-income economy.
The Philippines is one of the fastest urbanizing
countries in the world given its urban growth rate 3.2
percent. As reported in the World Urbanization Pros-
pects: 2005 Revision, 62.7 percent of the 84.6 million
population of the Philippines live in urban areas. Of
the total 78 provinces in the country, 16 provinces
surpassed the national proportion of urban baran-
gays/villages (23.7 percent). Of these provinces, 13
were in Luzon, two in Visayas and one in Mindanao.
UN-Habitat together with UNDP launched the Good
Urban Governance and Secure Tenure campaigns
in the Philippines in 2002. A year after, a series of
projects for assisting cities in localizing the MDGs was
started to operationalize the GUG campaign. Thus
the UN-Habitat County Office in the Philippines was
established. Shortly thereafter, the IMPACT project
was implemented to operationalize the Secure
Tenure campaign. After four years of operations, the
country office hereby consolidates and synthesizes
its experience in the Philippines through this HCPD.
This Country Programme Document presents an
analysis of the Human Settlements and Urbanization
realities in the Philippines. The development goals set
forth in the end was therefore based on the analysis
and the Medium Term Strategic and Institutional Plan
2008-2013. It further outlined the strategies critical
to assist the government and Habitat Agenda partners
towards achieving sustainable urbanization and meet-
ing the targets of the Millennium Development Goals.
EXECUTIVE SUMMARY
© US State Dept.

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