Cities Alliance Project Output

City Development Strategy Report for

Pagadian City 9 Mar 2009
City Development Strategies in the Philippines: An Enabling
Platform for Good Governance and Improving Service Delivery

P098173

This project output was created with Cities Alliance grant funding.
 City Development Strategies Report | 1
 CDS 2008
CITY DEVELOPMENT STRATEGIES IN THE PHILIPPINES:
AN ENABLING PLATFORM FOR GOOD GOVERNANCE AND
IMPROVING SERVICE DELIVERY

Pagadian City
The CDS3 Project is a technical assistance grant funded by Cities Alliance and
supported by the Asian Development Bank,Japan International Cooperation
Agency, UN-Habitat, and the World Bank. The CDS project was developed
in response to the need to introduce an integrated, comprehensive, and
participatory approach to urban management. Founded on the principles ZAMBOANGA DEL SUR, PHILIPPINES
of livability, bankability, competitiveness and good governance, the CDS
process guides the cities in the preparation of comprehensive, long- CIT Y DEVELOPMENT An Enabling Platform
term development strategies, where the city government involves local STRATEGIES IN for Good Governance and
stakeholders in the entire strategic planning process-assessment, visioning, THE PHILIPPINES improving Service Delivery
strategy formulation and project prioritization and capital investment
planning-through a series of consultations.

The World Bank implemented the pilot phase in the 1999 with 7 cities.
Since then, the League of Cities of the Philippines, carried out 2 succeeding
phases, which expanded the program to 58 cities in all. In 2001, the Up-
scaling Poverty Focused City Development Strategies (CDS2) covered
31 new cities. In 2005, the project CDS in the Philippines: An Enabling
Platform for Good Governance and Improving Service Delivery (CDS3)
added 15 new cities to the roster of CDS cities in the Philippines. Under
the preparation grant for the City Development and Investment Project,
the League also carried out CDS for 5 new cities. As of 2008, 64 of 120 cities
have participated in the CDS program, including 3 cities assisted by ADB
under the Cities without Slums Project (Caloocan, Quezon and Taguig),
and the 3 cities that participated in the Local Environmental Planning and
Management Project of the UNDP (Lipa, Cagayan de Oro and Tagbilaran). Chairman : Hon. Samuel S. Co, Mayor
Vice Chairman : Hon. Estrella D. Arao, City Councilor
For more information on CDS, you may visit http:www.cdsea.org Members : Engr. Reynita R. Ebal, Asst. CPDC
Engr. Rogelio C. Alcasid, Project Evaluation Officer IV
Contact Ms. Milagros D. Radaza, Administrative Assistant II
Mayor : Hon. Samuel S. Co Ms. Ma. Theresa C. Balucan, Administrative Aide VI
Address : City Hall Complex, 016 Pagadian City
Zamboanga del Sur
Tel. Nos. : (062) 2144676
Fax No. : (062) 2144948
Mobile No. : (0918) 9142144
URL/Web : www.pagadian.com; www.pagadiancity.com
C I T Y D E V E L O P M E N T S T R AT E G I E S R E P O R T
Preface Within these pages, we chart our plans taking due consideration to
population, environment and local resources on the efficient allocation
Today, after a review and analysis of how we, so far are going in this City and use of the city’s resources for optimal growth and development.
Development Strategy (CDS) process, it is only fitting and proper that we Knowledge on population and interrelationship of the demographic
first view the pro-active attitude of the Local Government and its staff processes and state of support system especially infrastructure will sustain
who manifested a sense of urgency to forge planning tools for sustainable our planning tools for growth.
development.
As Martin Luther King said:“My obligation is to do the right thing; the rest is
It is evident that the tasks before us are daunting. Indeed, we are not only in God’s hand”. I am obliged to make a CALL TO ACTION for all of us to build
expected to improve or modernize our system to deserve our people’s a modern city where all social classes have equal access to public service.
trust in us. We are counted upon to lay down the foundations of genuine We will always remember: methods are many, values are few, methods
government service — painstakingly and whole-heartedly. always change, and values never do. Our plans are anchored on a love
of humanity, a sense of public service or moral obligation in caring about
A heart of courage and determined spirit can move gargantuan things. people we have never met or barely know.
No less than Her Excellency President Gloria Macapagal-Arroyo once said:
“Even the smallest actions of a determined spirit can bring grace to the In taking these challenges as partner of the CDS process, the city affirms its
entire nation.” commitment in enhancing a strategic platform that provides foundations
and impetus to development as it works and learns with others of how
I hope that we will have your pro-active stance to the City Development to bring the social and economic change, we passionately believe are
Strategy (CDS) from now on, as we vow to provide a community much necessary for the realization of the city’s vision 2015.
improved on major aspects of your concerns. Certainly, these improvements
would be a lasting contribution to our nation. God bless us all in our present and other initiatives.

I am sure that the CDS Training organized by the League of Cities through
the support of the Cities Alliance, World Bank, JICA and ADB will help us find
solutions to common problems encountered in local governance. We must Hon. Samuel S. Co
keep abreast with the changes that are happening around us- wherever MAYOR
public service calls to render. Continuing changes is indispensable to
the achievement of our goals. The underlying answer to the objective
of CDS is clear: Enhancement of better public service by competent local
government.

Remember, you may come from comfortable offices and wonderful homes;
you may have been raised on or have been exposed to exotic urbanization.
But because of common objectives, because of common desires to improve
the quality of public service, and the urgency to help our constituents,
we shall, in this corner of the nation, overcome our differences and find
strength in our similarities. This we must do and do without delay as a
matter of national concern. We shall in this part of the region plant the
seeds of ideal public service from enlightened local government offices
run by open minds that accept continuing changes that are dedicated to
a common cause.
TABLE OF CONTENTS
Page

Selected Urban Karte IndicatorS

Introduction 1

Situation Analysis

Livability 6

Competitiveness 7

Bankability 9

Good Governance 9

Vision and City Brand 10

Strategies 11

Capital Investment Plan 13

PROJECTED NET NEW FINANCING 14

Definition of Terms & Acronyms SELECTED URBAN KARTE INDICATORS
INDICATORS PAGADIAN
CDS City Development Strategy 2000 population 142,585
CLUP Comprehensive Land Use Plan A1 Total Population (2005) 165,617
ESWM Plan Environment and Solid Waste Management Plan A2 Population Growth Rate (2000-2005) 16.15%
HHs Households A11 Administrative Land Area (Km2) 378.8 Km2
IRA Internal Revenue Allotment A7 Urban Population (projected 2005) 78,326
LGU Local Government Unit A15 Number of Households (2000) 28,041
MPA Marine Protection Areas A17 Estimated Employment by Industry Sector
NPC National Power Corporation A Primary (agriculture, fishery, forestry) No data available
NGO Non-Government Organizations B Secondary (manufacturing, mining, processing) No data available
OTOP One Town, One Product C Tertiary (services, banking, insurance, wholesale/retail No data available
PAIC Provincial Agri-Industrial Center trade)

ZAMSURECO I Zamboanga del Sur Electric Cooperative -1 A18 What are the City’s geographical advantages?
A Regional/provincial center yes
B Accessibility to an airport of international standards no
C Accessibility to a port of international standards No data available
D Others (please describe)
L1 % of HH with access to piped water (level 3) 84.14%
L11 Cohort survival rate for elementary (2005) No data available
L14 Cohort survival rate for high school (2005) 74.67%
L30 Infant mortality rate No data available
L41 Crime solution efficiency rate No data available
L45 Number of HH living in informal settlements 3,650
C18 Building permits issued within the last 5 years
A Residential No data available
B Commercial No data available
C Agricultural No data available
D Institutional No data available
C29 Unemployment rate (2001 vs. 2005) No data available
C32 % population with undergraduate degree No data available
B3 % Total Debt Servicing Needs to Total Regular Income 6%
B4 % of savings to expenditures (2007) 8.16%
FP2 - B Per Capita Allocation to Health Services No data available
FP2 - D Per Capita Allocation to Education Sector No data available
G2 Average Number of days to issue a NEW business 3-5 days
license (w/ complete documents)
 SELECTED URBAN KARTE INDICATORS INTRODUCTION
INDICATORS PAGADIAN
Pagadian City was converted into a chartered city by virtue of Republic
G2 Average Number of days to RENEW business license 3-5 days
(w/ complete documents) Act No. 5478, otherwise known as the Charter of the City of Pagadian on
G7 % of local revenue/total revenue
June 21, 1969. It is the seat of the regional government and administrative
center for Western Mindanao-Region IX as mandated in EO No.429 dated
G11 Frequency of meetings of the Local Development
Council (LDC) October 12, 1990.
ADDITIONAL DATA (from the survey)
The city is geographically situated in the northeastern side of the Province
1 Poverty Incidence
of Zamboanga del Sur in the Island of Mindanao and has a total land area
2 Performance of elementary children in NAT
of 378.80 square kilometers that constitute 8.46% of the land area of
3 Performance of high school children in NAT
the Province of Zamboanga del Sur. It has a total population of 142,585
4 Percentage of participation of Local Special Bodies
(LSBs) in public hearings conducted
(28,041) households, with an annual growth rate of 2.82% per annum. The
city has 54 barangays--13 classified as urban and 41 classified as rural.
5 Presence of ELA (if yes, proceed to questions 6 and 7;
if no, proceed to question 8)
6 Percentage of Projects implemented from ELA
The city had been declared the regional administrative center for Western
derived from CLUP Mindanao because of its strategic location among the cities and provinces
7 Percentage of Projects implemented from AIP in the region. Being the capital city, and located in the northeastern side of
derived from ELA the province of Zamboanga is advantageous. It is the intersection or the
8 No. of registered small and medium industries (2001 crossroad to eight (8) cities and one (1) capital municipality.
vs 2005 for all types)
9 Number of barangays practicing segregation at
source and served by an MRF
10 Percent of waste generated diverted from disposal
11 Presence of sanitary landfill

8 | C ity of Pagadian City Development Strategies Report | 1

 B
A

C
Luzon

Visayas D

A. Zamboanga del Norte

B. Misamis Occidental
C. Lanao del Norte
D. Zamboanga del Sur Mahayag
Dumingag
Josefina

Midsalip Sominot
Tambulig

Ramon Magsaysay
Mindanao Lakewood
Tukuran
Bayog Pagadian City
Tigbao

Labuyan San Pablo

Dinas
Dimataling
Pagadian City
Pitogo Tabina
Ilana Bay
Pagadian City

2 | C ity of Pagadian City Development Strategies Report | 3

 Mt. Susong Dalaga

View of Pagadian City

Alegria Falls

Dao-dao Island

Puting Balas
Taklubo Stage at Plaza Luz

4 | C ity of Pagadian City Development Strategies Report | 5

 Situation Analysis segregation at source. There is currently only 1-Barangay Materials
Recovery Facility in the city, a Bio-Reactor and Windrow Composting. The
city envisions that the approval and strict implementation of the ESWM Plan
LIVABILITY
together with the ordinance for the purpose will solve waste management
problems in the city.
Pagadian City’s average annual growth rate is higher than the national
growth rate due mainly to the in-migration of residents from the
The health problems of the people in the city include URTI/Bronchitis,
neighboring areas. People from the rural barangays of the city have also
Pneumonia, and diarrhea. The city also has very limited number of
migrated to the urban center because of better economic opportunities.
medical health personnel and resources/facilities and has to respond to
27% of the population of the city live below the poverty line ---- farmers,
the challenges of strengthening and sustaining of its health programs in
fishermen, informal settlers, laborers, government workers, construction
terms of additional medical personnel, improvement of health facilities
workers, among others.
and equipment. The City Health Office is confronted by increasing number
of children and mentally deranged persons in need of special protection,
Because of the influx of migrants/ settlers to the city, the total number of
shelter and care for rehabilitation and/or diversion.
households (HHs) with no security of tenure grew to 52.67%. Informal
settlers living along the road right-of-ways, riverbanks, and along the
Every barangay in the city has a day care center, and pre-school located
coastline represent 9% of the total households. The city government
in the public elementary schools, with private pre-schools in the urban
plans to reduce the number of informal settlements along the coastal area
center. In the elementary level, participation rate is 119% and 95.12% in the
through its partnerships with non-government organizations (NGOs).
secondary level. Cohort survival rate is 96.59% for elementary and 74.67%
for secondary. Drop-outs are caused by poverty and/ or financial constraints
A total of 72.80% households in the city have electric power and 93% of
and inaccessibility of schools for those residing in far-flung barangays of
the barangays are energized by ZAMSURECO I through the NPC from Iligan
the city. Secondary public schools cover clusters of barangays.
City. 71.52% of households have level 3 water supply services. The city has
abundant springs which are utilized as water sources while deep wells are
developed in designated areas for additional sources of water for domestic COMPETITIVENESS
use.
Of the total labor force of 57,673, 35% are employed in agriculture/fishery,
In terms of environmental issues, Pagadian City’s forest cover is now only 10% in manufacturing and 55% in services/wholesale/retail businesses.
19.37% out of the 34.74% forest area vis-à-vis the fact that the city is part Agriculture and fishery are the dominant economic activities and ranked
of a watershed area and that its remaining natural resources must be foremost sources of livelihood in the city while rice, corn, coconut, root crops,
protected and conserved. In addition, the city also faces a geohazard the and high value crops are the main agricultural products. Fish and marine
form of the Moro Gulf faultline which runs along the coastal area and was products come from the municipal, commercial, and aqua-culture fishing
one of the causes of the August 1976 tsunami. The low-lying coastal areas while dried fish of all kinds come from Jolo, Zamboanga and some nearby
are also prone to flash floods during heavy downpours that eventually municipalities. Northern Mindanao, Cebu, and some parts of Mindanao
subside when the rain stops. Informal settlements along the riverbanks, are the market areas of these agri-products while the city itself acts as the
coastline/shoreline, and mangrove areas have also degraded and destroyed trading and commercial center for agricultural products, manufacturing
the urban environment and cutting of trees /kaingin in the rural areas has and non-manufacturing services.
denuded the mountains and hills and caused soil erosion and flooding.
With the above opportunities, the city commits itself to the cultivation of
City Government has constructed a controlled dump site, but the garbage agricultural land areas so that these too will become productive. It also
collection services cover only 17 barangays and do not yet include aims at improving the agricultural skills of farmers and fishermen which

6 | C ity of Pagadian City Development Strategies Report | 7

 should be more environmentally friendly and focuses too on resource BANKABILITY
management. Other support programs will be implemented in order to
improve income and generate livelihood opportunities. The city is classified as a first class city even if it has 78.14% dependency.
The total revenue for CY 2005 was P 341,702,245.69 with an IRA of
There are 6,000 registered business establishment 3% of which are engaged P267,020,765.00. This situation prompts the city government to improve
in manufacturing and 97% in non-manufacturing businesses. The city has and enhance fund utilization in the delivery of basic services and facilities.
17 commercial, cooperative, rural and government banks with 71 private
lending shops /financing investors. Development programs and projects are implemented annually and
are regularly financed by the city government. Austerity measures are
Telecommunication facilities and connection are available through SMART formulated and implemented to reduce expenditures in the usage of
/GLOBE / SUNCEL/ DSL / PLDT and CRUZTELCO. Secondary airport and maintenance operating and overhead expenditures (MOOE), travel, among
seaport are also available as, well as land for development. others. An integral component of the city’s resource mobilization activities
are the City’s had loan agreements with the Land Bank of the Philippines
Pagadian City has a Double “A” Slaughterhouse , good road network, the (LBP), Development Bank of the Philippines (DBP), and Philippine National
availability of the investment incentive code and is identified as the site Bank (PNB) for the implementation and development of major projects
for the Provincial Agri-Industrial Center (PAIC). On-going Development - the Pagadian Fish Port Project, the improvement of the public market
Programs and Projects for Farm Mechanization, Livestock, Pagadian City through the construction of the 2-storey 3-side perimeter commercial
Fish Port Project, Construction of the 2-Storey 3-Side Perimeter Commercial building , and the Class AA City Slaughterhouse.
Building at the Public Market that expands the existing market buildings at
the 2-hectare site, Improvement of the Pagadian-Buug National Highway The city’s rate of savings to expenditures is 8.16% while the debt servicing
and the operation of the Provincial Bio-Fertilizer Plant at Barangay Dao ratio is 6%.
that changes farming techniques, are vigorously undertaken to bolster
productivity. GOVERNANCE
The city is typhoon free, accessible to the BIMP-EAGA, and seaweeds is its The city government has 88.91% permanent regular employees, which
One-Town-One Product (OTOP). means that all vital positions are filled to deliver better services. Personal
services over total expenditures is 53.89% which is higher than the
While the city prides itself in being dubbed as the regional center of
allowable threshold.
Zamboanga, it still has to develop the regional center site and it looks up
to the national government to provide and allocate funds for building Twenty-Eight (28) selected NGOs are members of the City Development
construction. To date, regional offices with minimal workforce has already Council out of the 75 accredited NGOs. There are on-going partnerships
transferred to the city with privileges and benefits given by the City with NGOs in implementing programs/projects such as school building
Government. construction, and housing projects, among others that create strong
coordination and participation for development. The city government has
The City’s rolling terrain poses difficulties for the vehicles, thereby resulting
conducted medical, dental, optical outreach missions, and mobile services
in traffic congestion in several areas. Road and traffic signage will be
to the different barangays of the city in partnership with some NGOs. The
installed to enable proper traffic enforcement and orderliness. Likewise
city has installed desk information, suggestion box and/or complaint box,
parking areas will be designated to reduced traffic congestion in the
Bulletin Boards, and TV/radio programs for transparency.
central business district.

While the city has good drainage system due to its topography, drainage
facilities are insufficient and causes flooding in the low lying urban areas.

8 | C ity of Pagadian City Development Strategies Report | 9

 The main development challenge of the city is to improve urban Strategies
governance. The City has to improve its organizational structure and the
1) Administration of Participatory Governance. Effective, efficient
capability building programs in order to meet the demands of growth and
and participatory governance will be administered. Transparency
development. Capable, well-qualified, responsible, and credible officials
and participatory are processes necessary in the development. Tax
and employees are committed to be working with good governance.
collection through updated tax revenue code, revenue enhancement
Management operations need to be improved and enhanced through
strategies and computerization will be increased to finance
data-based computer system.
development programs and projects.
a. Develop and enhance the resource mobilization capacity of the
Vision 2015 and City Brand city;
b. Institutionalize and upgrade human resource development;
“ Pagadian City, as the regional administrative center
of Western Mindanao, c. Computerize local government operations system (i.e. MIS & GIS);
shall be the center for commerce, trading d. Seek the support of the National Government to fully develop the
and agri- based industry, regional administrative center and provide an incentive package
upholding a sustainable ecosystem, to effect the regional transfer of government offices and their
administered by a technologically empowered local government, staff; and
with peace-loving and culturally-diverse people”.
e. Full/Strict enforcement of CLUP to deter illegal conversion of
The city envisions sustainable growth in commerce and trade among agricultural lands by the private landowners
the neighboring provinces, municipalities, in the island of Mindanao. The 2) Implementation of sound economic and infrastructure development.
establishment of agri-based industry will support the increased agricultural programs/projects for urban transport, infrastructure and agriculture
production that generates employment, increases income and reduces will be implemented to enable development.
poverty. Environment will be properly sustained for the welfare of every
a. Develop the 20-hectare Regional Government Center Complex
Pagadianon. The mixture of varied tribes and religions is not hindrance for
living in peace, love, and harmony. All of these is governed with a systematic b. Provision of Service Plots for Regional Employees
and empowered city government. c. Intensify agricultural and fishery development
Pagadian City’s mission is “to provide its constituents basic and other d. Construct and/or improve support infrastructure and facilities for
services that are needed to enhance their dignity as human beings, agriculture and commerce
leading them to the full enjoyment of happiness in a peaceful, friendly, safe e. Integrate transport planning and traffic management into the
and orderly society through innovative, integrated, environmentally and development planning process
culturally sensitive, and gender responsive programs”.
3) Intensification of Social Development. The generation of employment
and livelihood opportunities will give better family income and
City Brand improve the standard of living. Basic social services will be enhanced
through community based programs and advocacy.
The City’s brand name is the “ Heart of Western Mindanao”. With its strategic
and geographic location in Region IX , the Province of Zamboanga del Sur, a. Increase the provision of basic social services to the marginalized,
and its neighboring cities, provinces. It is where agricultural products from persons with special needs and street children;
rice, corn, vegetables, poultry, hogs, fish (fresh and dried), aqua-culture are b. Locate and relocate informal settlers;
landed and traded.

10 | C ity of Pagadian City Development Strategies Report | 11

 c. Intensify protective services efforts, upgrade and modernize Capital Investment Plan
capabilities; PROPOSED ESTIMATED TOTAL
PROJECT TITLE PROJECT COST 2006 2007 2008 2009 2010 2011
d. Advocate mechanism through coordination, integration and (In Million Pesos)

participatory approach between the public and private sector 1 Dev’t of Regional 100 30.00 30.00 20.00 20.00
Complex Site
4) Balancing Environmental Protection and Development. There is a
2 Environmental 29 6.00 6.00 6.00 6.00 5.00
need to balance growth and progress with the environment through Management Program
the protection, reforestation and waste management.
3 City Computerization 10 10.00
a. Protect and rehabilitate the environment and degraded natural Progam(MIS/GIS)

resources, and uphold balance ecosystem 4 Agricultural Support 115 30.00 30.00 30.00 25.00
Program
b. Implement the ESWM Plan
5 Urban Transport 175 30.00 30.00 30.00 40.00 45.00
Development Program

6 Social Development 20 2.00 10.00 8.00

Program

7 Upgrading/ 600 267.00 267.00 266.00

Improvement of
Pagadian City Airport

8 Development of 160 1.00 19.00 40.00 50.00 50.00

Reclamation/Boulevard

9 Establishment 350 5.00 70.00 75.00 75.00 75.00 50.00

of Pagadian City
Commercial Center

10 Human Resource 10 3.00 3.00 3.00 1.00 95.00

Development and
Capacitation

TOTAL COST 1,569 44.00 475.00 479.00 480.00 196.00

SOURCE OF FINANCING

a. Last year’s budgetary 4.00 4.00 4.00 5.00 5.00

surplus

b. Increase in tax 10.00 25.00 40.00 50.00 50.00 25.00

collection/local funds

c. Revision of City Revenue 15.00 20.00 25.00 30.00 30.00

Code

d. Income from projects- 20.00 20.00 25.00 30.00 15.00

user charges

e. Bank loan 40.00 38.00 50.00 10.00

f. Bond Flotation

g. BOT/Joint Venture 34.00 40.00 40.00 10.00

h. Grant/subsidy from NG, 19.00 352.00 317.00 286.00 61.00 20.00

and others

TOTAL COST 44.00 475.00 479.00 480.00 196.00 95.00

12 | C ity of Pagadian City Development Strategies Report | 13

 Projected Net New Financing
2006 2007 2009 2008 2010 2011

Projected Operating Revenue 345,315,054.17 358,609,683.75 386,754,178.61 372,416,156.58 401,644,214.48 417,107,516.74

Projected Operating Expenditures 341,654,714.59 354,808,421.11 382,654,584.31 368,468,545.32 397,386,785.81 412,686,177.06

Gross Cash Flow for Operations 3,660,339.57 3,801,262.65 4,099,594.29 3,947,611.26 4,257,428.67 4,421,339.68

Debt Service on Current Obligations - - - - - -

Gross Funds - after debt 3,660,339.57 3,801,262,25 4,099,594.29 3,947,611.26 4,257,428.67 4,421,339.68

Less: Projected Recurring Expenditures 2,000,000.00 2,000,000.00 2,500,000.00 2,500,000.00 3,000,000.00 3,000,000.00

1,660,339.57 1801,262.65 1,599,594.29 1,447,611.26 1257,428.67 1,421,339.68

Less: Proposed Capital Expenditures 44,000,000.00 475,000,000.00 480,000,000.00 479,000,000.00 196,000,000.00 95,000,000.00

Net New Financing Needed 42,339,660.43 473,198,737.35 478,400,405.71 477,552,388.74 194,742,571.33 93,578,660.32

NOTES AND ASSUMPTIONS:

Debt Service on Current Obligations is included in the Operating Expenditures ***

Average Annual Growth Rate (AGGR) for Expenditures 1.06%

Therefore Average Income to Expenditures 98.94%

Average Annual Growth Rate (AGGR) for Income as Computed 3.85%

CY 2005 Actual Revenue 332,513,292.41

14 | C ity of Pagadian City Development Strategies Report | 15

 18 | C ity of Pagadian