Project 1. Formulation of the National Urban Development Framework and Strategy (NUDFS)

Intended Outcomes

Outcome No. 1: Efficient and Effective Urban Development Management
Outcome No. 2: Strengthened and Institutionalized Participation

Key Result Areas

KRA NO. 1: Policy, Legal, and Legislative Framework

Rationale

The Philippines is undergoing a high rate of urban growth. But the growth process brought socio-economic inequity among the various areas of the country. Problems of lack of urban-rural integration, inter-urban linkages, linkages to international markets, internal inefficiencies in urban centers, and inadequate urban governance capacities, manifest themselves in such problems as regional price disparities, inequity in resource allocation, urban poverty and homelessness, and general inability of urban centers to contribute more fully to global competitiveness, equitable economic development and democratization.

There is a need to embark on a holistic approach to managing the country’s urbanization process over the medium and long terms.

The National Urban Development and Housing Framework, 1999-2004 (NUDHF) presents a first huge attempt at systematically addressing the country’s urban development concerns. The NDUHF is aimed at providing a menu of policies that will set the direction of the country’s urbanization process. However, to date, after three years of its development and adoption, the NDHUF has not been implemented.

It is for these reasons that this proposed project is prepared. In particular, this project does not merely implement the current NUDHF. Instead, it will prepare a National Urban Development Framework and Strategy (NUDFS) for 2004-2010 that will define the strategic directions for the long-term (up to 20 years) urbanization of the Philippines.

The framework also provides a first effort at integrating economic development plans and policies contained in the Medium-term Philippine Development Plan and other sectoral policies with the national urban development strategy.

Objectives

1. To define and agree on a vision of urbanization in the Philippines.
2. To provide the framework and strategy for defining and guiding the urban development of the Philippines over the medium and long terms towards the realization of the stated vision.
3. To link economic development plans and policies with the urban development process such that cities become efficient and effective platforms for economic progress.
4. To create mechanisms that ensure that the urbanization process and spatial dimensions of socio-economic growth address the concerns of economic inequity, problems in access to economic opportunity and global markets, and disparate as well as limited access to services and housing. The framework will also address land management, environmental degradation, and urban development finance and need to improve capacities for good urban governance.
5. To develop policies, strategies and actions that will steer the urbanization process towards achieving improved collective economic performance of urban areas, economic integration of rural and urban areas, global integration of cities, improvement of internal city efficiencies, conservation of cultural heritage, urban poverty reduction, security of tenure, and other relevant objectives.
6. To establish policies and strategies that will guide actions to address the adverse side effects of urbanization particularly on vulnerable groups.

Project Components/Scope of Work

Program will unify all national urban development frameworks and plans into an integrated strategy, define the economic levers, identify key cities and urban and economic development clusters, formulate supporting road and communications infrastructure backbone. Components include:

1. National Economic and Urban Development Framework and Strategy
   2004-2010 (NEUDFS)
2. Application Guide
3. Consultation, Public Information, and Consensus Building
4. Review of Urbanization Impacts of Sectoral Policies

A. National Economic and Urban Development Framework and Strategy, 2004-2010 (NEUDFS)

The framework will articulate a commonly agreed on and understood urban development vision, and will provide a set of concepts, approaches, and policies that will define and guide the direction of urban development in the Philippines. It will identify the economic levers and their spatial distributional dimensions, linking centers of production and resources with centers of processing and reaching the global and domestic markets. Further, it will redefine the economic, social and political role and growth direction of Metro Manila and those of key regional cities. Coordinated with the Medium-term Philippine Development Plan, the framework will provide guidance to cities in strategically positioning themselves within the socio-economic and urban development process and to design and implement their respective urban development strategies in accordance with such position.

The framework will identify the key socio-economic growth centers and urban clusters in the regions, the direction of regional urban growth and the integration of the urban development process. It will draw up the key transport and communications infrastructure development program that will support the urbanization process. It will identify strategic urban-rural integration and sustainable development policies and strategies that will guide the specific policies and regulatory framework of sectoral departments and the regulations and intervention programs of cities. The framework will contain long-term development directions of up to at least twenty years. ↑

In particular, the framework will contain policies, approaches, and guidelines for the following development concerns:

• Identification of the hierarchy of urban growth centers and definition of their socio-economic roles and economic linkages
• Growth plan and policies for the development of Metro Manila and the peri-urban centers
• Urban development strategy for identified key cities in the urban growth centers
• Transport and communication infrastructure development program
• Land use and environmental management policy framework
• Internal development concepts strategies to guide individual city development and growth of various types of cities
• Urban social services development framework
• Shelter and secure tenure policies
• Urban poverty reduction strategies
• Heritage conservation policies
• Waste management policies
• Urban-rural and urban–urban linkages ↑

B. Application Guide

Application guides will be developed to enable stakeholders—national government, cities, business, academe, people’s organizations, and other pertinent stakeholders to define their objectives, strategically position themselves, and formulate their respective plans and programs. ↑

C. Consultation, Public Information, and Consensus Building

Regional and city specific consultations, public awareness campaigns, focus group discussions with business, people’s organizations, academe and organized citizenry will be designed and undertaken to promote understanding, adoption and application of the framework and strategy, and to enable its translation into operational programs of government agencies, cities, business communities and people’s organizations.

Focus group discussions in pertinent sectoral agencies and departments, with the Cabinet, and Congress will also be designed and undertaken.

The framework will be approved by the Cabinet and will be endorsed by Congress. ↑

D. Review of Urbanization Impacts of Sectoral Policies

The World Bank Study entitled "Towards a National Urban Development Framework for the Philippines: Strategic Considerations" point to the implicit and profound urbanization impacts of key government national and sectoral policies. It cited such documents as the MTPDP and such laws as the Agrarian Reform Act, Local Government Code, the National Integrated Areas System and other related policies as exerting strong influences in urban development.

This component involves an inventory and review of all policies, regulations, incentives, and other government interventions on their impact on location decisions of population and economic activity.

Policy and government intervention reviews will cover such areas as macro-economic policies, trade and investment policies, business regulation, social services policies and programs, governance and national government planning and budgeting, among others.

Based on the reviews, reform proposals will be formulated and guidelines will be developed on how spatial development implications can be considered in policy and rule formulation, as well as in program development and implementation.

A focus area of the policy reform is the development of specific policies and criteria for the conversion of peri-urban land surrounding Metro Manila.

An examination of the proposed Land Use Act and the preparation of a possible land code will form part of the assessment and reform areas for this project. ↑

Expected Outputs

1. National Economic and Urban Development Framework and Strategy (NEUDFS) Document
2. Application Guide for Specific Stakeholders
3. Completed consultations, public information and consensus building activities
4. Review and proposed reforms (including legislation proposals) on sectoral policies with significant urbanization impacts

Project Management Arrangements

The Philippine Urban Forum (PUF) will be the executing agency for the project. It will establish and act as lead of a NUDFS committee comprising of members from the National Economic Development Authority (NEDA), Department of Interior and Local Government (DILG), Department of Tourism (DOT), Department of Transportation and Communications (DOTC), Department of Trade and Industry (DTI), Department of Agrarian Reform (DAR), Department of Environment and Natural Resources (DENR), Department of Agriculture (DA), Department of Public Works and Highways (DPWH), Department of Education (DepED), Commission on Higher Education (CHED), Department of Health (DOH), and Department of Budget and Management (DBM), heads of leagues of local government heads, city mayors, representatives from the academe, civil society and peoples’ organizations, and representatives from business.

Project Duration

Twelve (12) months:

• Framework/strategy and application guide development, 6 months
• Completed consultations and public education, 6 months

Estimated Cost

US$ 1,200,000