Good Practice Notes Issue no. 25 July 2012 PHILIPPINES Renovating urban services and housing for the poor Urban Partnerships for Sustainable Upliftment (UPSURGE) Project T he Republic of the Philippines is an archipelago in South-East Asia with more than 7,000 islands. The Philippines has an average population of 101,833,938 (2011 Index Mundi) and the numbers keep on growing. As described by the Global Report on Human Settlements 2003 (United Nations Human Settlements Programme -UN-HABITAT), urban development in the Philippines and other developing countries is accompanied by a high population growth rate (1.903% of population in 2011), with an even higher rate of increase in the proportion of the urban poor, slum dwellers, and informal settlers. It is calculated that in less than 30 years many Asian cities, including the “We feel much Philippines, will double more comfortable their populations with here because our Photo: Urban revitalization works during the about half estimated UPSURGE project surroundings are clean. to be residing in slum areas.1 the World Bank. Our roads are concrete, we have water and The Government of Regardless of slum improvement efforts, the electricity and, most of the Philippines (GoP) increasing magnitude of the problem has not all, we have livelihood. has addressed these been controlled. To address these challenges, a challenges prioritizing new project called the Urban Partnerships for The lot where our house Sustainable Upliftment, Renewal, Governance, slum upgrading with stands is going to be our the aim of providing and Empowerment (UPSURGE) formally began own, so we feel secure.” safe and resilient on 11 July 2007 with the signing of an agreement housing for families of from the Japan Social Development Fund (JSDF) -Ms. Rosadel Gumapong, informal settlers. administered by the World Bank. mother of five children and The World Bank has supported the The US$1,910,000 JSDF UPSURGE grant (Refer resident of the Canduman GoP with urban to Box 1) was innovative in the sense that not Haven resettlement site in only improved the physical and environmental revitalization since Mandaue City the 1970s through the conditions of selected urban poor communities Tondo foreshore project through a tripartite multisectoral partnership (then the largest slum (civil society-local government unit [LGU]- settlement in Metro Manila and in southeast Asia community) but at the same time strengthen the with over 180,000 people). This was followed institutions involved. by a significant number of urban development projects and more recently the slum upgrading This partnership resulted in a better projects in the ‘Upscaling Urban Poor Community understanding of urgent matters of slum Renewal Scheme’ (UUPCRS) Project funded by upgrading and urban development strategies and provided ground-breaking solutions in terms of 1 UN-HABITAT 2003:8-16;Asian Development Bank 2004 The Japan Social Development Fund (JSDF) was established in June 2000 by the Government of Japan and the World Bank as a mechanism for providing direct assistance to the poorest and most vulnerable groups in eligible World Bank group member countries. The World Bank San Fernando City - JVOFI Philippine Support Service Agencies (PHILSSA). PHILSSA is a development agency that has strong relationships with communities and experience coordinating NGOs Valenzuela City - FDUP as implementing agencies. PHILSSA served as a communication bridge between Old Implementing Agencies (OIAs) and new ones (New Implementing Quezon City - FDA Agencies -NIAs). The OIAs and NIAs as well as their partner city governments collaborated in the implementation of the project as well as the selection of Naga City - COPE the community-beneficiaries. Legazpi City - AQFI The JSDF UPSURGE grant developed these dynamic partnerships among city governments, NGOs, community associations, and other civil society groups, as well as Mandaue City - RAFI members of the business community, particularly civil works contractor-companies. Talisay City - PHILDHRRA The NGO-implementing agencies (NGO-IAs), formed a multisectoral partnership in each city, which in most cases came together as a committee: the City Renewal Iligan City - LIHUK Implementation Committee (CRIC) which was in charge of the planing, implementation, and monitoring of the subprojects. Map 1: UPSURGE project setting, 2007-2010 shelter, sanitation and other basic needs for the poorest Communities were actively involved in the selection of families in the metropolitan area. In addition, the project community subprojects. The subprojects included created social capital, empowering communities and physical improvements, road construction and drainage improving skills. systems, housing units, water systems, material recovery facility, flood control facility, and slope protection. It also supported the purchase of solid waste management equipment. The full range of subprojects is illustrated in The Project Table 1. Five components comprised Project UPSURGE: (a) design and organization; (b) community planning, mobilization and subproject implementation; (c) training JSDF at work and capacity-building (d) institutionalization, which included mechanisms to strengthen the multistakeholder The UPSURGE grant assisted to 17 communities. The partnerships and the mobilization of resources; and (e) project showed substantial accomplishments in achieving support to project implementation. its desired outcomes: As shown in the map above, the UPSURGE project (a) Community infrastructure subprojects were covered eight cities in five administrative regions across identified and implemented by the communities and the Philippines. The participating cities represented a sustained through the tripartite partnership - The project diverse group of developing urban centers including successfully completed 19 subprojects through the the oldest and most populated cities (Quezon city) and tripartite partnerships created in participating cities, a relatively young and small city (Talisay City in Cebu benefiting approximately 4,000 households. Province). The eight cities share common challenges related to urban poor dwellers and informal settlements. (b) Learning activities leveraged capacity of LGUs, civil These settlements are often located next to waterways, society groups and community associations - UPSURGE rivers and creeks, and in many cases they are areas influenced eight LGUs2 and nine NGOs through formal considered at-risk for natural disasters. training contributing significantly to the successful The UPSURGE project relied on the Partnership of planning and implementation of the project. In addition, the project adopted a “twin city” mentoring strategy where the original NGOs - the OIAs, mentored Box 1- Key Data the new set of NGOs - the NIAs, in various areas, such as in community organization, financial management, Trust Fund #: TF058154 procurement, technical/engineering review. This strategy Implementing Agency: Partnership of Philippine has helped the learning by new participants in carrying out upgrading activities. Support Service Agencies (PHILSSA) Grant Amount: US$1,910,000 (c) Institutional mechanisms were established to facilitate 2 Implementation Period: 07/17/2007-07/10/2011 LGU = Local Government Unit 2 http://www.worldbank.org/jsdf into consideration the additional land acquisition costs to Table 1: UPSURGE Subprojects, 2007-2010 be paid back by the beneficiaries. City Community (Area) Subproject (e) Building not only physical infrastructures but social San Fernando City- FVA (0.5 ha) 1. Improvement of 43 housing units capital in the form of trust, dignity, skills and attitudes- 2. Construction of a multipurpose building Project UPSURGE also emphasized building social Valenzuela City- DAHOA (1.24 3. Construction of concrete roads and capital that developed trust progressively and enabled ha) alleys, and drainage communities to be more responsive to future challenges. 4. Provision of electricity connection Having access to land ownership created a sense of Quezon City- KASAMPO-II (1.0 5. Construction of concrete roads and dignity too among the beneficiaries. Communities have ha) drainage; individual household water Quezon City- Area 7 (no data) meter and connection realized they can rely on their city government for 6. Construction of a community park and technical and/or financial support and are more open playground to share their needs. Another example of change of Naga City- MVHOA (1.9 ha) 7. Construction of concrete roads and attitudes was seen among city officials that set aside their drainage political views and supported communities perceived 8. Construction of additional concrete roads and drainage (Phase II) to be allied with rival political party when looking at 9. Housing construction assistance people’s strong commitment. Legazpi City- APHOA (2.4 ha+2.3 10. Construction of concrete roads, ha) stairways, pathways, and drainage 11. Installation of a water system 12. Installation of a flood control system Lessons Learned The following are the main lessons from the project: Mandaue City- KCHAI (1.9 ha) 13. Construction of concrete roads and drainage 14. Construction of community market Empowering Communities to take the driver’s seat of 15. Construction of livelihood center their own development is key to the success of this type 16. Sewing machines for center of projects - The UPSURGE Project demonstrated the Talisay City 17. Construction of concrete roads and drainage effectiveness of a community-based and demand-driven -CHOA (.34 ha) 18. Construction of concrete roads and approach in the implementation of slum upgrading -VISCHOA (.38 ha) drainage; and slope protection projects. Communities that are fully involved in every step Iligan City-TCVHOAI (2.5 ha) 19. Construction of macadam roads, of the process proved to be effective project partners. concrete drainage, retaining wall, and concrete stairways Forging partnerships is essential in slum upgrading - collaboration between LGUs, civil society groups and The UPSURGE Project featured successful partneships community associations - Various mechanisms to among LGUs, civil society and community associations mainstream the tripartite partnership were initiated which were an innovative aspect of the project and or strengthened in all participating cities. The eight unleashed opportunities for collaboration, empowerment participating cities either set up and transformation of mindsets. CRICs or made use of existing local The tripartite partnership created bodies to serve as a continuing substantial positive impact and structure for planning and synergy. It lowered implementation implementing other community risks, fostering ownership and upgrading projects. Some even accountability. For example, in established city housing funds Mandaue, Naga and Iligan, stronger jointly managed by different partnerships were developed built stakeholders. These structures on the UUPCRS previous experience served to instill transparency and in implementing slum upgrading accountability to the project. activities. Participants in the (d) Decisions on Cost Recovery communities saw what could be - The OIAs/NIAs, the city accomplished and were inspired by governments, and community the positive benefits and outcomes associations developed an of the partnership. In these cities, agreement regarding subproject post-project activities such as the cost recovery. Cost recovery was integration of shelter plans and viewed as a strategy for enhancing concerns in development plans and beneficiary and organizational replication of similar slum upgrading ownership toward the project. It initiatives were easily integrated and was also a strategy that provided implemented. In cities where NGO-IAs a core fund for scaling up slum and community engagement on urban improvement. Cost recovery poor issues was relatively new, the agreements ranged from 20% to focus of the institutionalization process 100% of the subprojects. Direct Photo: Boy sitting next to one of the was on building mutual trust among costs, with 7-25 year amortization channels that were part of the slum stakeholders who were initially skeptical periods. The decisions on the upgrading works on the viability of the partnership amounts and periods generally took arrangements. As a result of collectively 3 in households. Experienced NGO-IAs become a credible resource to the LGUs - OIAs can effectively mobilize communities and exchange knowledge with NGOs that do not have the same level of expertise. OIAs can become a resource to government as it defines a broader program for slum upgrading nationwide. Sustaining project gains through follow-up activities - Slum upgrading is a continuing development process. Project gains need follow-through commitments of various stakeholders -even beyond project completion- to be sustainable. Continuously building the capacities of communities in the areas of land management, cost- Photo: Building capacities in the community-the recovery and economic asset building are therefore UPSURGE project developed skills and built social capital needed. It may be useful to explore the possibility of tapping micro-finance institutions to take on the post- developed solutions, they learned to cooperate with each project tasks because they can extend their presence other. In Valenzuela and Quezon City, the project inspired in the communities. As micro-finance agents, they help these cities to be more receptive to work with NGOs and build up the economic assets of communities and are communities. At the same time, NGOs and communities best positioned to provide the necessary post-project are now more open to approaching and seeking support systems (e.g., mechanism for regularly collecting assistance from their city governments. small amounts of money from participating households, providing capacity-building activities, etc) because they Leveraging NGO-IAs fundamental elements of slum incur less transaction costs and can inculcate a sense of upgrading - Trust building is the most fundamental discipline among members. element of any successful slum upgrading project, and NGOs often have the ability to reach, organize and mobilize the poor and marginalized. They have deep Going to Scale and Sustainability knowledge of local conditions and constraints and are sensitive to local cultures, making them effective in The lessons learned from the project as well as the facilitating dialogues among stakeholders. NGOs are also processes and methodologies adopted are useful and adaptable, responsive and innovative because of their replicable in the design of slum upgrading programs and small-scale and flexible operations. However, NGOs are in broader city governance and planning activities. The inherently different from government and development project’s open menu approach encourages city programs institutions in terms of approach, scale and timing. It to be flexible and responsive to local conditions and may be worthwhile to look for ways to ensure that the constraints. strengths NGOs are not compromised and constrained by bureaucratic rigidity and, at the same time, allow NGOs to recognize the merits of procedural requirements and Follow-on Project work within this arrangement. The formulation of this JSDF project provided an urbanization framework and has been mainstreamed into Cost recovery and collection mechanisms can open the network’s strategies and operational processes at the possibilities for other communities - Cost recovery local and national levels. The JSDF UPSURGE Project is schemes have sensitized communities to the idea that feeding the National Slum Upgrading Strategy (NSUS) repaying part of the costs is not an obligation to the which was launched on December 2011. The NSUS is a project or the government but to other poor communities critical first step to push the partnerships on developing a in desperate need of the same services. The recovered national strategy for slum upgrading forward. amount was used for maintenance of community infrastructure and for helping other communities to jumpstart their slum upgrading activities. However, Resources keeping an on-time and positive inflow of recovery funds as well as getting new tenants to be committed •• Kit on ISF- Project UPSURGE Reports-Synthesis (Au- to the contribution payments are still challenge. There gust 2011) is a need to be creative and flexible in cost recovery •• PHILSSA - www.neencabangis.com/testsites/philssa/ schemes to create ownership and financial responsibility modx/modz-2.1.1-pl The Japan Social Development Fund -- JSDF Good Practice Notes seek to share achievements, knowledge and lessons learned from the implementation of JSDF projects over the past decade. The JSDF is a partnership between the Government of Japan and the World Bank to support innovative social programs that directly meet the needs of the poorest and most vulnerable groups in developing countries. JSDF projects meet four basic requirements: Innovative, introducing new approaches to development; Responsive to the needy, by directly meeting the needs of vulnerable, marginalized, and disadvantaged groups; Rapid response activities that deliver short-term results and benefits to targeted beneficiaries; and Community capacity building activities that empower local governments, NGOs, and disenfranchised groups, while promoting stakeholders participation and ownership.