Cities Alliance Grant To Help Cities Formulate And Implement Participatory Development Strategies

Contacts:                                                                     
In Manila:
Leonora Aquino-Gonzales (632) 917-3003
E-mail: lgonzales@worldbank.org

Anissa Tria (632) 917-3013

E-mail: atria2@worldbank.org

In Washington:  Melissa Fossberg (202) 458-4145
E-mail: mfossberg@worldbank.org

MANILA, October 10, 2005 — A US$467,100 grant from the Cities Alliance Trust Fund[1] was recently signed for the “City Development Strategies in the Philippines: An Enabling Platform for Good Governance and Improving Service Delivery” project. The project aims to enhance the strategic planning, governance, and resource mobilization capabilities of Philippine cities to contribute to economic growth and urban poverty reduction. The League of Cities of the Philippines (LCP) will implement the project.

The City Development Strategy (CDS) is a technical assistance program which aims to assist cities in developing strategic directions through a participatory approach to promote local economic development and enhance competitiveness. Over 40 cities have participated in the CDS process which has generated more than 500 priority programs and projects in such areas as infrastructure, environment, and governance across Philippine cities.

“The LCP is committed to expanding the participation of the Philippines in the CDS program by promoting the adoption and recognition by the national government of CDS as a main tool for local development planning. We would like to express our deepest appreciation to our partners for the continued support for our cities. We hope that through this partnership, we will move closer towards achieving our vision of a strong republic,” said LCP President, Iloilo City Mayor Geronimo Treñas.

Acting World Bank Philippines Country Director Chris Hoban said, “The World Bank is proud of the partnerships with LCP and progressive cities who have been participating in CDS over the years. The participating cities and the LCP have responded with great enthusiasm and energy to the assistance provided, and have shaped the program to meet their own needs and priorities. We hope to continue and expand the partnership.” The World Bank administers the Cities Alliance Multi-Donor Trust Fund and other financial resources of the Cities Alliance.

It is estimated that over 40 million Filipinos live in urban areas, representing 52% of the total population. Urban areas accounted for an estimated 75-80% of the Philippines’ GDP in 2000, illustrating a remarkable shift from an agriculture-based economy over the last 40 years. With the decentralization of most national government functions through the Local Government Code of 1991, executive, administrative and financial powers were transferred to local government units (LGUs), placing upon Philippine cities a greater role in the country’s economic growth and development.

The proposed grant will finance activities in three key areas:

·          Consolidating and expanding CDS, building on the previous successful CDS experiences (CDS1 and CDS2) in the country with improved methodology through setting up a well-defined structure, with corresponding benchmarks, results indicators and a learning program. All cities will have the opportunity to develop, update, or strengthen their development strategies.

·          Facilitating LGU access to a broader range of financing options, enhancing the Capital Investment Planning approach into a more comprehensive financing framework, including improving local resource mobilization, expanded knowledge on accessing local financial market.

·          Institutionalizing CDS in the Philippines by integrating CDS into the national planning process and providing operational support to LCP to promote and implement the redesigned CDS.

The grant signing took place at the 47^th Assembly of LCP at the Century Park Hotel in Manila where mayors and representatives of nearly sixty cities participated in the event. The signing was witnessed by Interior and Local Government Secretary Angelo Reyes and representatives of the Japan Embassy and Japan International Cooperation Agency, who co-sponsored the project with the World Bank.