Municipal Government of Rodriguez Rizal

LAND DEVELOPMENT PROJECT

(Mount Parawagan & Balagbag)

Presented By: JOEL G. ATENDIDO

VP – Finance & Admin
AWIA
 Municipal Government of Rodriguez Rizal

Development Concept
 Rodriguez, Rizal
Metro Manila Development Scenario

 The region consists of 14 cities and (3) municipalities

 Metro Manila is the primary administrative center of the

Philippines where concentration of commerce, industry and
services are operating

 Metro Manila has population of eleven (11) million as of year

2000 and estimated to reach 14 million in 2001 at 2.25% growth
rate annually.

 Population influx in Metro Manila, industrial development, and

unstructured land use zoning have overloaded the infrastructure,
promoted the rapid deterioration of the environment, and posed
serious social, economic, and urban development problems.
 Philippine and Metro Manila
Rodriguez, Rizal

Housing Scenario

 According to Housing and Urban Development

Coordinating Council (HUDCC), the country’s projected
housing need is about 3.7 million from 2005 to 2010

 Out of the total housing demand, the national government

can provide only 33% or only 1.1 million secured units.

 The remaining 67% is anticipated to be filled by private

sectors and local government units.

 It is estimated that in Metro Manila alone requirements is

44% of the total housing need of the country or about 1.6
million housing units.
Rodriguez, Rizal
The Need for Alternative Development

 Decongestion is now a major development options to resolved

the predicted urban development problems in Metro Manila.

 Development of other location (in close proximity in the

region) is the foreseen strategy to divert the migration flows.

 A place that can provide public not only a simple housing but
also of economic and other opportunities.

 The proposed land development project in Rodriguez Rizal is

one of the alternative solution to ensure the productivity and
development of the National Capital Region.
Rodriguez, Rizal
The Project

The Project is a Land Development

of a 20,000 hectares of property that
will institute a New Township or a
new well-planned built community
which is self-sustainable,
environmental friendly, and a
balance and peaceful environment to
live and to earn a living, and with a
globally competitive economy.
Rodriguez, Rizal Development Goal
 To support the national government in decongesting the National Capital
Region (NCR);

 To make available decent housing to local community as well as to provide

the housing requirements Metro Manila and other adjacent municipalities
and cities;

 To facilitate industrialization to help the national government in Elevating

the countries National Gross Domestic Product (GNP);

 To provide additional source of income for the local government of

Rodriguez Rizal to carry on its priority projects, programs, and services for
its local constituents;

 To create opportunities such as employment, career, investment, education

and other opportunity for the local resident; and

 To uplift the local and national economy

Rodriguez, Rizal Project Component

 SPACE FOR LIVING

- Housing
a. Workers Village
b. Executive Village

- Retirement Haven
a. Independent Living
b. Assisted Living
Rodriguez, Rizal Project Component
 SPACE FOR MAKING A LIVING
- Government Centers
- Commercial and Business District
- Agricultural and Industrial Park
- Services District
a. utilities area
b. medical and educational area
c. transportation
d. others
Rodriguez, Rizal Project Component

 OPEN SPACES
- Tree Parks
- Eco-Trails
- Eco-tourism park
- Protected area
- Greenbelt area
Rodriguez, Rizal Project Site
 The proposed project will be located at
Mount Parawagan and Balagbag,
Rodriguez, Rizal.

 It is approximately 5 and 8 km from the

Montalban Town Center, 12 km from
Batasang Pambansa or Commonwealth
Avenue, 15 km from Marcos Highway.
Estimated travel time is about 20 minutes
to Ortigas Center, 25 minutes to Makati
Central Business District, 15 minutes to
Eastwood, 15 minutes to Government
Center in Quezon City, 25 minutes to Port
of Manila, and 30 minutes to Ninoy
Aquino International Airport.
 Project Advantages
 The site is very proximate to Metro Manila Business, Industrial, and
Government Offices Districts;
 Demand on Housing is very high & supply is low as of this instance;

 Water and Power Sources is available on the site;

 It can be planned well and be develop for balance living;

 As a new township, restrictions can be imposed for controlled population,

infrastructures, and other development inputs;
 Forest and other environment feature of the site can be preserve to
maintain the good weather condition in the area;
 Temperature in the area can be compare to Tagaytay and it can be develop
as a summer capital of Metro, Manila;
 Property can be sold in much cheaper prices compare to other property in
Metro Manila in the nearby areas.
 Municipal Government of Rodriguez Rizal

Ownership Structure
Options
 Ownership Structure OPTION
A
Rodriguez, Rizal
SOLE OWNERSHIP

On this option, the Land Municipal Government

Development Project and all the of Rodriguez Rizal
property constituting the project will
be directly and solely owned by the
Municipal Government of Rodriguez
Rizal.

The LGU will be responsible for

financing, developing, building and
operating the proposed project.
Land Development Project
Benefit and Risk are on the account
of the LGU
 OPTION
Ownership Structure B
Rodriguez, Rizal
Joint Venture (Divided Joint Interest)
- Each participant owns a
divided interest in the real
and personal property
constituting the project; Investor
- Investor place their A Municipal Gov’t
investment to land dev’t of Rodriguez Rizal
Investor
project in close B
coordination and/or as
stated in contract with the Investor
LGU. In exchange to the C
financial inputs, the LGU Investor
will assign portion/s of D
the property to the
investor for full dev’t;
- Benefits and risk of the
project is directly on the LAND DEVELOPMENT PROJECT
property owner
 OPTION
Ownership Structure C
Joint Venture (Undivided Joint Interest)
Rodriguez, Rizal

Participant Participant Participant Rodriguez

A B C Rizal
Each participant owns
an undivided interest
in the real and
personal property LAND DEVELOPMENT PROJECT
constituting the
project (ownership
interest refer to the
Each participant shares in the benefits and risk of the
entire asset of the
project in direct proportion to the ownership percentage;
project, no participant
is entitled to any Participants chooses among themselves the project
particular portion of operator;
the property ;
The duties of the operator and the obligations of all
parties are specified in an operating agreement.
 OPTION
Ownership Structure D
Rodriguez, Rizal
Joint Venture (Project Company)
EQUITY INVESTORS PROJECT SPONSORS

Investor Investor Investor Other Rodriquez

A B C Participants Rizal - LGU
Liability limited to
equity invested of
project sponsors or
investors except as
otherwise agreed

Project Company
Project Sponsor
• Project sponsor/s will form a project
company that will finance, build, operates
and own the land development project.
Equity Investors Land Development Project
• Equity investors are co-owner of the
project company.
 Municipal Government of Rodriguez Rizal

Financing Structure
Options
 Financing Structure Option No. 1
Rodriguez, Rizal (for JV-Undivided Interest)

Commercial Govt Financial Private Financial National/ Govt Housing

Banks Institution Institution Provincial Govt Institution

Financial Sources
of Participants

ODA
Rodriguez Participant Participant Participant
Rizal A B C
Regional
Devt Banks

Export Credit
Agencies
LAND DEVELOPMENT PROJECT
International
Finance Corp
 Financing Structure Option No. 2
Rodriguez, Rizal (for JV-Divided Interest)

Financial Sources Prov’l & Nat’l

Bond Floatation
of Investors Government

Investor
A
Mutual Funds
Investor
B
Commercial &
Investor Municipal Gov’t Gov’t Banks
C of Rodriguez Rizal
Regional
Investor Development Banks
D
EXIM Banks

LAND DEVELOPMENT PROJECT Gov’t Housing

Institutions
 Financing Structure Option No. 3

(for JV-Project Company)

Rodriguez, Rizal
Private Financial National/ Govt Housing Govt Financial
Institution Provincial Govt Institution Institution DEBT

Local Financial
GUARANTEE EQUITY Market

EQUITY INVESTORS Commercial

RODRIGUEZ RIZAL Banks
Financial/Material Supply/
Study/Design/Mgt/Advisory/
(Project Owner)
HIGC Construction Inputs Land and Financial Inputs
ODA

Bond
LGUGC Market
Project Company
Regional
Other Govt Devt Banks
Guarantee Land Development Project Export Credit
Agencies

Intl Financial
PURCHASERS/OFF-TAKERS Institution
Real State Developer/Brokers/Others
MARKET
 Financing Structure Option No. 4

(for JV Project Company)

Rodriguez, Rizal
Private Financial National/ Govt Housing Govt Financial
Institution Provincial Govt Institution Institution DEBT

Local Financial
GUARANTEE EQUITY Market

EQUITY INVESTORS Commercial

RODRIGUEZ RIZAL Banks
Financial/Material Supply/
Study/Design/Mgt/Advisory/
(Project Owner)
HIGC Construction Inputs Land and Financial Inputs
ODA

Bond
LGUGC Market
Project Company
Regional
Other Govt Devt Banks
Guarantee Land Development Project Export Credit
Agencies

Intl Financial
PURCHASERS/OFF-TAKERS Institution
Real State Developer/Brokers/Others
MARKET
 Financing Structure Option No. 5
Rodriguez, Rizal (for Sole Ownership)

Prov’l & Nat’l Commercial &

Bond Floatation Mutual Funds
Government Gov’t Banks

Gov’t Housing Regional

Institutions Development Banks
Municipal Government
of Rodriguez Rizal

Land Development Project

Rodriguez, Rizal
Possible Sources of Funding

 Equity
a. Project Sponsor
* Municipal Government of Rodriguez Rizal
* Other Parties
b. Equity Investor/Project Participants
* Government Housing Development Agencies
* Investment Company (local or international)
* Third-party project participant
- Project Designer
- Off-take purchasers
- Construction financing from contractor
- Material/Equipment Suppliers
Rodriguez, Rizal
Possible Sources of Funding

 Debt
* Institutional Investors
* International Commercial Banks
* International Finance Corporation
* Regional Development Banks
* International Bond Market
* Local Banks and Bond Markets
* Suppliers Credit
* Government-guaranteed official loan from multilateral
institutions and bilateral agencies
 Financing Structure Options
Rodriguez, Rizal

(Other)

There are still many financing structures

options and sources other than
the recently presented are
available which is highly depend on the
project requirements, arrangements, legal
structures and other considerations.
Rodriguez, Rizal

THANK YOU