Prosperity Fund

GLOBAL FUTURE CITIES PROGRAMME

CEBU
CITY CONTEXT REPORT
 Prosperity Fund
GLOBAL FUTURE CITIES PROGRAMME

CEBU
CITY CONTEXT REPORT
December 2018
Global Future Cities Programme
CEBU
City Context Report

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME

P.O. Box 30030, Nairobi 00100, Kenya 
www.unhabitat.org

Funded by: United Kingdom Foreign and Commonwealth Office (UK FCO)
Lead executive agency: UN-Habitat: Urban Planning and Design Lab
Academic partner: International Growth Center (IGC)
Professional partner: United Kingdom Built Environment Advisory Group (UKBEAG).

Disclaimer
The designations employed and the presentation of material in this report do not imply the expression of any opinion
whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory,
city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or regarding its economic
system or degree of development. The analysis conclusions and recommendations of this publication do not necessarily
reflect the views of the United Nations Human Settlements Programme or its Governing Council or its member states.
Reference of this publication of any specific commercial products, brand names, processes, or services, or the use of
any trade, firm, or corporation name does not constitute endorsement, recommendation, or favouring by UN-Habitat
or its officers, nor does such a reference constitute an endorsement of UN-Habitat.

Acknowledgments

City context report coordinators (Cebu): Gabriela Aguinaga, Ban Edilbi (UN-Habitat)

United Kingdom Foreign and Commonwealth Office (UK FCO)

Project Management Elizabeth Milsom

Manila Office Camille Soriano

United Nations Human Settlements Programme (UN-Habitat)

Project Coordination Laura Petrella

Project Manager Rogier van den Berg
Project Supervisors Klas Groth, Naomi Hoogervorst

Local City Specialist Glynda Bathan

Urban Planning and Design LAB

Niina Rinne, Jonathan Weaver, Sara Thabit, Gabriela Aguinaga, Dongni Niu, Riccardo Maroso, Charlotte Mohn,
Ban Edilbi, Jean-Noé Landry, Katherine Cashman, Princesse Samba, Yabework Kifetew, Nadia Mourid, Yumi Neder,
Stephanie Gerretsen, Shegufta Newaz Francesco Tonnarelli

Philippines Country Office Christopher Rollo

The International Growth Center (IGC)

Project Coordination Astrid Haas

Contributors
Priya Manwaring, Victoria Delbridge, Michael Blake, Oliver Harman, Shah Rukh, Sebastian Kriticos

United Kingdom Built Environment Advisory Group (UKBEAG)

Project Coordination and Strategic Advisor Peter Oborn

Project Lead Adrian Mallesom
Visiting Expert Peter Oborn
CONTENTS

GLOBAL FUTURE CITIES PROGRAMME 4

Introduction 4
About The Global Future Cities Programme
Intervention Development and Validation
The City Context Report
Cebu 9
General Context
Cebu 2030 City Strategy and Evidence-Based Planning

URBAN ANALYSIS 12
Spatial Analysis 12
Urban Growth and Land Availability
Urban Form
Financial Analysis 18
Financial Capacity
Capital Investment Capacity
Enabling Conditions for the Implementation of Ppps
Barriers to Inter-Municipality Borrowing
Revenue Generation and Cost Recovery
Legal Analysis 20
Metropolitan Governance
Decentralisation In Cebu City
Land Use Plan and Zoning Ordinance
Evidence-Based Planning

INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 22

Potential Impact 22
Short-Term Outcome
Medium-Term Outcome
Long-Term Potential Impact
Contribution to Sustainable Urban Development 25
2030 Sustainable Development Goals
New Urban Agenda Alignment
Alignment with Cross-Cutting Issues and the Prosperity Fund
Success Factors 28
Spatial Considerations
Financial Considerations
Legal Considerations

ENDNOTES 32
4 CEBU - City Context Report

GLOBAL and collectively provide further evidence for the overall

programme.

FUTURE CITIES The Programme builds upon a coherent series of

targeted interventions in 19 cities across 10 countries,
to support and encourage the adoption of a more

PROGRAMME sustainable approach to urban development. In general,

the proposed interventions aim to challenge urban
sprawl and slum developments, thereby promoting more
dense, connected and inclusive cities that in combination
contribute to prosperity, achieving the Sustainable
Development Goals (SDGs) and implementing the New
Introducti on Urban Agenda (NUA).

The Global Future Cities Programme builds upon three

integrated pillars, that will address key barriers to
ABOUT THE GLOBAL FUTURE CITIES PROGRAMME prosperity, in selected cities:

In 2015, the UK government created a new Cross- • Urban planning – technical assistance for
Government Prosperity Fund worth £1.3 billion from spatial restructuring (Public space, Heritage
2016-2021, in order to help promote economic growth and urban renewal, Urban strategies and plans,
in emerging economies. Its broad priorities include Data systems for integrated urban planning);
improving the business climate, competitiveness and • Transportation – technical assistance to
operation of markets, energy and financial sector support cities to develop integrated transport
reform, and increasing the ability of governments to systems (Multi-modal mobility strategies and
tackle corruption. plans, Data systems for multi-modal mobility);
• Resilience – technical assistance to develop
Emerging Economies still face considerable challenges strategies to address the impact of climate
such as uncontrolled urbanisation, climate change and change and ensure development is sustainable
high and persistent inequality which can lower long- (Flood management plans and systems).
term growth prospects. The Prosperity Fund supports
the broad-based and inclusive growth needed to In order to capitalize on the proposed interventions
build prosperity and reduce poverty, but also make and to ensure sustainability and impact in a longer-
development overall more sustainable through the term perspective, the programme has a strong focus on
strengthening of Institutions and Improvement of the technical support and institutional capacity development.
global business environment.
In many of the interventions, there is a particular focus
The Global Future Cities Programme (GFCP) is a specific on the potential of embedding smart/digital technology
component of the Prosperity Fund which aims to carry and data analysis platforms in urban governance and
out targeted interventions to encourage sustainable management processes. Integrating smart technologies
urban development and increase prosperity whilst is recognized as an instrumental area that significantly
alleviating high levels of urban poverty. The programme can improve the efficiency in the provision of key
will also create significant short and long-term business infrastructure services, enhance urban resilience, support
opportunities in growing markets, forecast to be regional evidence-based plans and strategies and promote
growth hubs, including for UK exporters who are world integrated planning approaches across sectors.
recognised leaders in urban innovation.
INTERVENTION DEVELOPMENT AND VALIDATION
The overall strategy of the Global Future Cities
Programme is to deliver the Programme in two phases; Based on initial scoping studies and government-to-
a strategic development phase (2018), followed by government engagement carried out by UK FCO, the
an implementation phase (2019-2021). UN-Habitat, UN-Habitat team worked with partner local authorities
in collaboration with the International Growth Centre and wider stakeholders to corroborate their city
(IGC) and the UK Built Environment Advisory Group development strategies, and to confirm, enhance and
(UKBEAG), has been mandated by the UK Foreign develop the intervention proposals.
and Commonwealth Office (UK FCO) to develop and
undertake the strategic development phase. This in In each city, a Local City Specialist, supported by the
turn, will inform and shape the implementation phase, national and regional country offices of UN-Habitat
 INTRODUCTION 5

and in liaison with the FCO local posts, took the in a set of City Context Reports as well as an analysis of
lead in identifying stakeholders in a series of bilateral the technical viability of the interventions. The analysis
meetings, interviews and focal group discussions. This aimed at both informing the development of the Terms
has collectively gathered information and provided of Reference and the future implementation phase of
more detailed knowledge and information on the City’s the Programme.
visions and goals.
THE CITY CONTEXT REPORT
Based on this initial phase, a Charrette (planning
workshop) involved high-level decision-makers from Objectives
the public and private sectors together with civil A City Context Report is provided for each city of the
society representatives. This facilitated discussion on Global Future Cities Programme. It serves as a tool to
the proposed and possible alternative interventions, frame the proposed Programme interventions within
related individual interests, technical opportunities and the characteristics and pre-conditions of each city.
constraints, as well as political objectives. The outcome
of the Charrette provided clarity on where stakeholders The Report targets a variety of stakeholders in the
stand in relation to the strategic potential of the Programme: administrators, city managers, policy
discussed projects and it allowed for the mobilisation makers, legislators, private sector actors, donors, and
of support. local as well as international researchers and knowledge
generators. The Reports also provide UKFCO the
At the same time, the Charrette allowed for the technical contextual setting of each proposed intervention, and
teams to proceed with the development of a Terms of can in addition, be used by the Service Providers as an
Reference, outlining the specific scope and activities of entry point for the implementation phase.
each intervention. A final Validation Workshop assured
consensus on the proposed projects and document’s By addressing the specific challenges facing each city, the
endorsement by the authorities. Report illustrates how the interventions can work towards
inclusive prosperity and sustainable urban development.
Parallel to preparing the Terms of Reference, an The benefits of each intervention, however, cannot be
evaluation of the interventions was initiated, aiming to achieved without certain enabling conditions to ensure
address its feasibility within the local strategic context, its success. Therefore, critical aspects for the delivery
identify potential impact on prosperity barriers and to of the proposed interventions and its success from a
explore the optimal delivery models. This process resulted long-term perspective are outlined. Using thematic
6 CEBU - City Context Report

best practices and evidence from global learnings and can either facilitate or hinder the implementation and the
research, contextualised recommendations are provided long-term sustainability of the proposed interventions in
on the conditions necessary for the intervention to be transport, resilience and urban planning.
viable and to reach a maximum impact.
This framework follows UN-Habitat’s three-pronged
Essentially, the City Context Report serves to ensure that approach, recognising the three essential components
all actors within the Global Futures Cities Programme for a successful and sustainable urbanisation: 1. urban
are aware of the specific conditions to be considered in planning and design; 2. urban economy and municipal
the delivery of the proposed interventions, on a case-by- finance; 3. urban legislation, rules and regulations.
case basis.
Firstly, the spatial analysis describes the existing urban
Set-up and Scope context specific to the intervention. Urban mobility
The first part of the City Context Report (General systems, vulnerability of the built environment, spatial
Overview) provides an overview of the Global Future form and trends are considered as possible challenges in
Cities Programme and introduces the city from the urban management that the intervention can address.
perspective of the urban challenge which the proposed
intervention intends to address. Secondly, the financial analysis aims to identify the
mechanisms in place by which the intervention could
The second part of the Report (Urban Analysis) more be sustainably financed in the long-run. This section
critically and technically analyses a selection of factors outlines the city’s municipal capacity, existing regional,
which need to be considered or to be in place for national and international financial ecosystem and
the intervention to succeed, addressing its feasibility, existing financing mechanisms at the municipal level.
potential impact on prosperity barriers from a long-term
perspective. Thirdly, from a legal perspective, the Report critically
analyses how the intervention could be facilitated or
The third part of the Report (International Alignment challenged by the vision of the city and its governance
and Technical Recommendations) presents short–and hierarchy. Enablers and obstacles resulting from any
mid-term expected outcomes as well as long-term relevant legislation, as well as sectoral frameworks
potential impacts. It further elaborates the contribution (e.g. strategies, policies, planning frameworks and
of the intervention to the achievement of the SDGs and development plans, detailed plans of relevance) are also
the implementation of the New Urban Agenda as well described.
as the programme objectives of the Prosperity Fund.
This approach aims to offer implementing partners,
As the City Context Report is tailored directly to stakeholders and donors a general context of the city
the Programme interventions, the analysis does not and, with it, demonstrate the appropriateness of the
aim to comprehensively present all aspects of urban intervention from a spatial, financial and legal point of
development. It does not elaborate on long term view, while at the same time informing about potential
planning and transformation strategies, the effectiveness barriers and enablers for its implementation.
of policy or urban legislation, nor the entire municipal
financial system. As such, it also excludes urban policy Potential Impact to the Program Objectives and the
recommendations. SDGs

However, the Report has the scope to illustrate the The Report also outlines the potential impact of the
general capacity of the city for project delivery, and interventions, based on the specific activities and
in this regard, make recommendations to support outputs proposed. Impact can arise from a complex
implementation of the interventions and reaching set interaction of context-specific factors, rather than as
goals. The City Context Reports will be part of knowledge result of a single action, which makes it difficult to
management for the Programme to generate local empirically quantify longer-run effects that go beyond
information and data on the cities as well as identify the identification of program outputs. An empirical,
gaps in knowledge, systems or governance. comprehensive impact assessment is therefore not part
of the scope of this report.
Methodology
Nevertheless, the report outlines potential benefits
Urban Analysis that are only achievable under certain preconditions
and activities. Thereby, short-, medium- and long-term
The City Context Report provides a general analysis of outcomes are defined with reference to a project-cycle
the spatial, financial and legal conditions in the city that approach, which considers all the project phases from
 INTRODUCTION 7

The City Context Reports further connect potential

impacts to the Programme’s objectives, taking into
account also the Cross-cutting issues at the core of
UN-Habitat’s mandate from the UN General Assembly.
Consequently, the Programme’s objectives are
summarized into five principles:

• Climate Change;
• Gender Equality;
• Human Rights;
• Youth;
• Sustainable and Inclusive Economic Growth.

Cross-cutting issues are addressed with explicit reference

to the 2030 Sustainable Development Goals (SDGs) and
the New Urban Agenda, in an attempt to ensure that
the proposed interventions are in line with the design,
implementation, review and success of the 2030 Agenda
for Sustainable Development. Consistent with UN-
Habitat’s mandate, the SDG 11 Sustainable Cities and
Communities is linked with the urban dimension of the
other 16 goals as an essential part of the localisation of the
SDGs. In this way, interventions can support localisation
processes, to support local ownership and ensure SDG
integration in sub-national strategies and plans.

Technical Recommendations and International Best

Practices

The interventions proposed in the various cities of the

Global Future Cities Programme were grouped into
clusters according to their thematic entry-point, as an
elaboration of the thematic pillars of Urban Planning,
Transport and Resilience.

These clusters are:

• Public space
• Heritage and urban renewal
Planning and Design through Building, to Operating and • Urban strategies and plans
Maintaining. • Data systems for integrated urban planning
• Multi-modal mobility strategies and plans
Short-term outcomes are directly achieved through the • Data systems for multi-modal mobility
implementation of the technical assistance support, • Flood management plans and systems
within the 2-3 years scope of the Global Future Cities
Program. Combining the international experience in urban policy
and project implementation of UN-Habitat and the
Mid-term outcomes are only realised once the leading academic research of IGC, each cluster was
intervention is executed through either capital analysed to offer evidence-based recommendations for
investment, implementation of pilot projects or a successful Implementation and a maximised impact
the actual enactment of legal documents, plans or of the intervention. Specific reference was given to
masterplans, within a possible timeframe of 3 to 7 years. implemented plans and international best practices.

The broader long-term impact of the interventions The recommendations inform the Planning and Design
is linked to the sustainability of the interventions in a phase which coincides with the timeframe of the Global
7-15 years timeframe and relates to the operation and Future Cities Programme, and always aim for long-term
maintenance phase of the project cycle. sustainability of the interventions.
8 CEBU - City Context Report

Fig. 1. Cebu City from Busay Mountain (Source: B Evans, Flickr)

 INTRODUCTION 9

C ebu
GENERAL CONTEXT

Cebu City is the regional, financial and administrative to IT services. Metro Cebu has greatly contributed to
capital of the Central Visayas Region (Fig. 2) with a the region’s economic growth, which reached 8.5
population of 900,000 and it is the second-biggest per cent between 2009 and 2015 and is higher than
growth area in the Philippines after Manila. It had Metro Manila’s economic growth (6.5 per cent) and the
the fastest-growing economy in the Philippines in the national average (5.8 per cent).3
1980s, which led to a growing population and an
expanding city. Cebu has expanded along the coast to Metro Cebu (Fig. 3) is composed of 13 different Local
become the Metropolitan Area of Cebu (Metro Cebu) Government Units (LGUs): three independent cities
(Fig. 3) and was home to 2.9 million people in 20171. (Cebu, Mandaue and Lapu Lapu), four component cities
By 2030, Metro Cebu’s population is expected to reach (Carcar, Danao, City of Naga, and City of Talisay) and
3.8 million people.2 six municipalities (Compostela, Consolacion, Cordova,
Liloan, Minglanilla and San Fernando). It occupies a
The city has witnessed economic growth, owing to its total area of 80,000 hectares, which is 15.7 per cent
geographical location in the centre of the Philippine of Cebu Island.4 The cities and municipalities all rely
archipelago. This has resulted in the majority of the city’s on each other for amenities and services; the airport is
labour force being employed in trade, mainly due to its on Mactan Island, while the industrial area is located
thriving commercial seaport. The city is also a hub for the opposite in Mandaue City.
business process outsourcing industry, especially related

Fig. 2. Location of Cebu within the Philippines archipelago Fig. 3. Cebu City’s location with Metro Cebu
10 CEBU - City Context Report

Fig. 4. Cebu City (Source: UN-Habitat)

CEBU 2030 CITY STRATEGY AND EVIDENCE-BASED A second strategy to augment urban areas has been
PLANNING coastal reclamation, which could have a harmful
influence on coastal environment and marine ecology
Problem Statement as well as cause changes on the regional ground
water regime which, may in turn, modify the coastal
Cebu City is located within a larger metropolitan area environment, flooding pattern and stability of slopes
that has experienced a rapid population growth in the and foundations.
last decades, increasing from 1.5 million in 1990 to 2.8
million in 2015. Development stretches along the coast Unsustainable urbanisation puts the economic
due to a mountainous topography and high vulnerability performance of the city of Cebu at risk, exposing it to
risk that restricts viable land allocation for urban the enhancement of negative externalities that increase
expansion. This was not matched with a corresponding the costs of traffic congestion, pollution, social and
development of services and businesses in the other spatial segregation and environmental risks.
municipalities of Metro Cebu, resulting in the creation
of a monocentric urban system concentrated in the city A difficult metropolitan governance and the lack of
of Cebu. planning tools in the city do not offer the adequate
instruments for long-term sustainable urban planning.
This, combined with a lack of efficient land use, a lack This adds to a lack of data availability, as well as lack
of public transport and insufficient development of the of data management and analysis that does not allow
road network, has led to traffic congestion plus high suitable evidence-based planning in the city.
pressure on service delivery and housing provision.
 INTRODUCTION 11

The city of Cebu wants to reverse this trend and improve 2) Cebu Data Hub
its strategies and urban planning mechanisms to
promote sustainable urban development for the urban There is a lack of data availability in Cebu City that hinders
expansion that is forecasted for the upcoming decade, the development of solid and evidence-based strategies
due to continuous migration and population growth. and plans. The Global Future Cities Programme aims to
support the development of a data centre that enables
In this sense, there is a need to enhance spatial- and the use of data across city departments and enhances
evidence-based planning for sustainable development evidence-based planning in the city as a whole. Main
and concretely advance the implementation of activities include:
the Sustainable Development Goals by promoting
sustainable modes of transport, resilience to risk • Assessment of the current data and IT
disasters, public space and affordable housing. framework that establishes the data needs
and data gaps, especially regarding the
Description of the Intervention development of the City Strategy
• Establish the purpose and mandate of the data
The interventions for Cebu City aim at tackling the hub and how it should be used for planning
unsustainable trends of urbanisation in Cebu through needs
two main outputs: • Based on the identification of data gaps, the
intervention will engage in the necessary data
1) Cebu City Strategy gathering activities for the development of the
city strategy
Currently the city of Cebu does not have a strategy • Establishment of an appropriate data
that guides urban development and provides long- architecture that includes data sharing
term goals. The Global Future Cities Programme aims protocols, quality assessment custodianship
to support the development of the strategy with the guidelines, a citizen engagement platform and
specific aim of advancing the Sustainable Development a big data strategy
Goals (SDGs) and addressing the specific challenges of • Identification of the adequate data science
transport, resilience and housing. Main activities include: platform needed for the data hub
• Capacity building training will be provided to
• A solid diagnosis and context assessment train the relevant teams in the management
based on evidence-based data analysis that and use of the data hub
establishes a baseline of the main urban • Development of an institutionalisation
challenges of the city; framework strategy that includes where
• Develop principal goals for the strategy that the data hub will be hosted within the city
will align with national and regional plans as governance structure and how the team will
well as the SDGs; be composed
• Carrying out a participatory stakeholder
engagement process that will include
community groups, the private sector and main
stakeholders from the city and metropolitan
governments;
• Development of a city spatial plan that
proposes efficient land use and a city form that
is connected, has mixed use, is inclusive and Main Stakeholder
compact;
• Establishing a road map towards achieving Office of the City Administrator
the SDGs that will include evaluation and
monitoring mechanisms; Thematic Cluster
• Identification of catalytic projects that are
aligned with the goals of the city strategy and Data Systems for Land Management and Urban
can contribute to the implementation; Planning
• Develop a funding and financing strategy for
the implementation of the city strategy with Keywords
a special focus on strengthening Cebu City’s
municipal finance capacity. City Strategy, SDGs, Data Hub, integrated
planning, evidence-based planning
12 CEBU - City Context Report

URBAN ANALYSIS

S patial An a l y si s the city’s urban extent in 1993, 2000 and 2014 (Fig. 5).6
The observed patterns include densification of the urban
core of Cebu City and extension towards Mandaue
and Consolacion municipalities. There has been urban
growth along the coast from Danao to San Fernando, as
URBAN GROWTH AND LAND AVAILABILITY well as strong growth witnessed in Cordova and Lapu
Lapu City.7
Cebu witnessed a considerable population growth
linked to the migration that followed the economic The observed urban expansion has also concentrated
boom of the 1980s.5 Urban expansion quickly filled the to a narrow stretch along the coastal areas (Fig.7)
available land within the boundaries of Cebu City, and in response to the steep sloped land further inland.
sprawled into the neighbouring Local Government Unit There is growing pressure on available land suitable
(LGU). This is especially visible spatially when comparing for construction; around 76 per cent of the land within

Fig. 5. Cebu’s urban expansion has been aligned to the coast due to the high topography restricting its growth inwards
 URBAN ANALYSIS 13

Fig. 6. Cebu City (Source: UN-Habitat)

14 CEBU - City Context Report

Fig. 7. Metro Cebu’s growth following a monocentric model with Cebu City in the centre
 URBAN ANALYSIS 15

Cebu City is considered hazardous and not suitable These risks are acknowledged by the national
for urban development. Due to lack of land and rapid government but are still not properly addressed by city-
urban expansion, it is crucial to consider the future level risk management and long-term planning. The
development 8 of Metro Cebu, which includes Cebu City current land use plan does not reflect any action or plan
and nearby cities, as an integrated metropolitan area to contain these hazards. This is especially important
rather than as isolated cities. for new development, including coastal reclamation
projects, that occurs without prior environmental
Coastal Reclamation screening.

An approach that Cebu City has taken to increase its

land area is coastal reclamation; currently 3 per cent URBAN FORM
of Metro Cebu’s land area is constituted of proposed
and already reclaimed land. 9 Coastal reclamation is Due to the lack of land availability, Metro Cebu growth
“the process of creating new land by covering up follows a linear model, which is further restricting due to
coastal areas with landfill.”10 It has been pursued by its monocentric land use model rather than a polycentric
Cebu City due to the scarcity of and high cost of land; one. All economic opportunities are concentrated in
on one side avoiding complicated acquisition, on the Cebu City.
other enabling profitable new development in prime
positions. The support from local government units has The development of polycentric compact poles would
allowed private investors to develop and pursue coastal be more appropriate for a city with the linear spatial
reclamation, in which the land is then used for industrial layout of Cebu as it allows for proper functioning of the
and commercial uses urban system and would equally distribute economic
opportunities. The sub-chapters below analyse how
There are many environmental implications associated the spatial form of Metro Cebu impacts the provision
with coastal reclamation, mostly related to its adverse of transportation, affordable housing and basic services.
impact on the coastal environment. The narrow
waterways along the coast of Cebu Island encourage
the growth of intertidal reef, which are at risk of
extinction due to manipulation of the coastline. Coastal
reclamation, through its landfill and dredging activities,
can cover up and destroy marine ecosystems, especially
fisheries and fish nurseries that are heavily reliant on
delicate conditions for spawning. This impacts the
fishermen and their economy, which involves directly or
indirectly around 850,000 people in Metro Cebu.11

Beyond the marine environment, intertidal reef areas

protect the shoreline and result in buffer zones that
can slow down and reduce the impact of storms. Sites
on reclaimed land are more susceptible and prone to
flooding, typhoons or any tropical storms as the land no
longer has a buffer zone around it.

Susceptibility to Natural Disasters

Currently, Cebu has little land to expand onto in the

future. Areas along the coast are susceptible to flooding,
while land further inland is steep and susceptible to
landslides (Fig. 8).12 While the areas further upland have
been marked as protected areas, this has not prevented
encroachment. As the current pressures on land are
high, there is no enforcement of policies to ensure that
these protected areas are left uninhabited.

Deforestation further upland not only jeopardizes the

forest ecosystem but increases the risk of flash floods
to Cebu City. Fig. 8. Natural risks impacting Metro Cebu’s growth
16 CEBU - City Context Report

The current spatial layout reveals a level of inefficiency in On the other end, Cebu lacks of metro-wide public
land distribution. While the current layout seems dense, transport strategy which could improve mobility. A recent
most of the buildings are lower than five stories and initiative, funded by the World Bank,14 aims to introduce
most dwellings in residential areas are detached houses a BRT to improve the performance of urban transport
with an average of one to two storeys. 13 Due to the lack while also considering environmental implications.
of land availability, densification of the existing built-up However, the project scope only includes Cebu City
areas needs to be considered. Vertical growth is required and implementation has not started yet. Transport
to avoid further unsustainable horizontal growth. in Cebu overly relies on low capacity private vehicles.
Public transport Is widely used but is mostly provided by
Transportation private operators and is road-based. Jeepneys covers 35
per cent of total travels; tricycles and pedicabs represent
Cebu has witnessed high levels of traffic congestion, 11 per cent while formal buses are only used by 4 per
which is a result of the spatial layout and residents’ cent of travellers. 15 (Fig. 10)
preferences. On one side, city-wide connectivity is
extremely limited with only two arterials roads, Cebu This goes along with an increase in vehicle ownership
South Road and Cebu South Coastal Road, connecting and use of private vehicles; the rise in population has
across the Local Government Units. These attract a been at a much faster pace than investments in transport
significant volume of urban as well as medium- and infrastructure. The current road network comprises 14
long-distance traffic. However, due to scarcity of land, per cent of the total urban area16 compared to UN-
there is little opportunity to increase infrastructure Habitat’s global recommendation of 30 per cent.17
provision. At the same time, the monocentric layout of This factors into the unsustainable mobility currently
Metro Cebu creates unidirectional traffic towards Cebu witnessed in Cebu through the high levels of traffic
City. congestion.

d
oa
hR
ut
So
bu

ad
Ce

Ro
al
ast
Co
thu
So
bu
Ce

ad
Ro
outh
b uS
Ce

d
uth Roa
Cebu So
Cebu South Coastal
Road

Fig. 9. Main arterial road in Metro Cebu

 URBAN ANALYSIS 17

Fig. 11. Mandaue-Mactan Bridge (Source: Cebu Daily News)

Informal Settlements and Affordable Housing materials that put them at risk of flooding and fires.
However, most of these residents still prefer to live there
Based on the latest Comprehensive Land Use Plan, than in any affordable housing that could be provided
affordable housing is the main responsibility of the due to the proximity of these informal settlements to
government but the private sector has been incentivised their areas of work.
to include affordable options in their offers.

A policy has been set that requires developers to dedicate

20 per cent of each housing development to affordable
housing but this has not been enforced.18

The policy does not suggest that the affordable housing

portion should be provided within the same building
or in the same local government unit, which has led
developers in many cases to build affordable housing
in areas that are more cost-effective to build such as
on the periphery of Metro Cebu. As seen above, these
areas lack proper connectivity with the centre, where
most services and job opportunities are located. This is
one of the main reasons for the proliferation of informal
areas in the central LGUs of Metro Cebu.

In 2010, it was estimated that 6.25 per cent of Cebu’s

residents were living in informal settlements, while
Mandaue and Lapu Lapu had 6.98 and 3.2 per cent
respectively. 19 Shelters in these areas are often located
in unsuitable land and constructed using poor quality
Fig. 10. Current modal share in Metro Cebu
18 CEBU - City Context Report

Financial Ana l y si s

FINANCIAL CAPACITY

In 2017, the budget outlay for the City of Cebu was

7,016,984,435 PHP (Philippines Pesos) or approximately
USD 370 million. 20 At a per capita level, this translates
into a budget of approximately USD 400 per person. This
signifies a reasonably high financial capacity for Cebu as
compared to other municipalities in the Philippines.
Fig. 12. Street Vendor (Source:Flickr)

As an independent city, Cebu has more revenue

generation capacity than many other municipalities in In addition to the local capacity, the national government
the Metro Cebu. For example, while other municipalities does provide financial support to projects through its
within Metro Cebu only receive a share of the property Public Investment Programme (PIP). There is a focus,
tax collected by the provincial government, Cebu City both through the PIP and through other programmes
can raise and retain the entirety of its own property tax. such as Build, Build, Build, to accelerate infrastructure
Hence, the city has generated comparably high-own investment in the Philippines. 22
source revenues, with own-source revenues accounting
for around 59 per cent21 of the total revenues on
average; national transfers comprise the remainder. The CAPITAL INVESTMENT CAPACITY
Cebu city Property Tax and Tax on Businesses represent
the main sources of own-source revenues generated. Despite Cebu City’s high revenue generation capacity
and considerable budget per capita that could support
Nevertheless, there is a high discrepancy in terms the sustainable implementation of the intervention in
of revenue capacity between the different Local the long-run, Local Government Units (LGUs) in the
Government Units that constitute the Cebu Metropolitan Philippines generally do not have a strong capacity for
area. While Liloan Municipality has the highest revenues capital investment.
within Metropolitan Cebu, other municipalities raise
much less, for instance, the Cordova Municipality raises LGUs in the Philippines represent only 14 per cent of
just USD 88 per capita. This discrepancy is also reflected public investments compared to around 40 per cent in
on the own source revenue generation capacity as some OECD countries.23 As an example, in Metro Cebu capital
municipalities depend on national transfers for up to expenditures accounted only for 9.8 per cent of the
80 per cent of their budgets. In terms of implementing total revenue in the metropolitan area.
coordinated inter-municipalities projects of key
infrastructure, this can represent a significant barrier This is also reflected in the low budget allocation
with regards to the ability to develop common financing of Cebu City for departments with a mandate
strategies that facilitate implementation. for infrastructure investment and development of
projects related to planning, resilience and transport.24
Concretely, Cebu City allocates 2.2 per cent of its
budget to its transportation office, 1.1 per cent to the
city environment and natural resources and 0.2 per cent
to its planning office.
 URBAN ANALYSIS 19

ENABLING CONDITIONS FOR THE IMPLEMENTATION OF REVENUE GENERATION AND COST RECOVERY
PPPS
Financing mechanisms for revenue generation and
One possibility that Cebu City can make use of to cost-recovery of capital investments such as land-based
finance and maintain capital investment projects is finance and the ability to raise fees and taxes are in
by joining a Public Private Partnership. Under the place in the City of Cebu. However, there are some
1991 Local Government Code, Cebu is legally able to barriers for implementation that should be considered.
enter into PPPs. Additionally, since 2010 the national For example, although the City of Cebu collects Property
government has placed a new emphasis on promoting Tax, it currently lacks the capacity to calculate the
PPPs, which has led to important organisational and market value of properties and this is evidenced by the
legal reforms. Most notably among them is the creation fact it is still using a tax base from 2002 for valuation.28
of the Executive Order No. 8 series of 2010 which Additionally, while fees related to land-use and urban-
inaugurated the national PPP Centre,25 chaired by the development licences are contemplated under the 1996
National Economic and Development Authority (NEDA). Zoning Ordinance,29 these fees are fixed by law in a way
This Centre oversees the facilitation, monitoring and which stalls new uses of the fee system. This is reflected
coordination of all PPP projects in the Philippines. within the low revenue-generation capacity of fees that
only reaches 6 per cent in Metro Cebu. 30
As part of this initiative, there is also a capacity-building
programme for enhancing the implementation of
PPPs by Local Government Units. Under the Project
Development and Implementation Facility (PDMIF) local
governments can obtain financial and technical support
to implement PPP projects.

Moreover, there is a precedent in Cebu City for the

implementation of PPP projects. For instance, the Cebu
City Solid Waste Management Project, which comprises
a waste-to energy facility in Inawayan Landfill, has been
done through a PPP. However, there are a few barriers
that remain for the efficient implementation of PPPs
in Cebu City, mostly relating to lack of cost recovery
mechanisms, technical capacity and the difficulty of
entering a binding contract with the private sector and
multiple Local Government Units.

BARRIERS TO INTER-MUNICIPALITY BORROWING

Cebu City, under the Section 297 of the Local

Government Code, has the legal capacity to borrow
domestic and international loans. There is also some
precedent in the City such as the loan provided by the
Japan International Cooperation Agency at an interest
rate of 11 per cent. 26

However, it is important to mention that two or more

LGUs are not authorised to enter loans together,27
which can severely hamper the implementation of large-
scale projects that naturally require inter-governmental
cooperation such as projects regarding water or
transport.

Fig. 13. Cebu City (Source: UN-Habitat)

20 CEBU - City Context Report

Considering that the current urban footprint of Cebu

spans municipalities that have varying types of legal
status, this adds a layer of complexity to inter-municipality
coordination and planning for infrastructure and public
services.

DECENTRALISATION IN CEBU CITY

According to the 1992 Philippine Local Government

Code, Cebu City has a high level of decentralisation
in terms of competencies regarding land use and
Legal Anal y si s strategic planning capacity and also regarding housing
development, flood control and transport. Concretely,
Cebu City combines competencies of solid waste,
drainage and sewage, flood control, housing, tourism,
METROPOLITAN GOVERNANCE forestry, agriculture extension, social welfare, water
supply and irrigation, roads, bridges and others.
Cebu City sits within a broader urban context of the
metropolitan area of Cebu that is constituted of 13 However, the City of Cebu only has partial control
different Local Government Units (Fig. 10). In 2011, with regards to transportation and environmental
the Metro Cebu Development and Coordinating Board management. With regards to transport management,
(MCDCB) was established, a public-private initiative the National Department of Transportations and
with the objective to unify and coordinate long-term Communications is the main body responsible for most
planning across the various Local Government Units. transportation investments including the planned Cebu
Bus Rapid Transport System. Additionally, the Land
However, MCDCB lacks legal mandate and enforcement Transportation Franchising and Regulatory Board acts as
capacity and instead relies on voluntary cooperation, the main regulatory authority for road public transport
which makes it challenging for implementing overarching services. On the environmental management side, the
metropolitan strategies and plans. 31 Office of the City Environment and Natural Resources34
holds a strong mandate for promoting environmental
Consequently, there is an absence of inter-municipality sustainability and resilience.
coordination in Metro Cebu for the delivery of key
services and infrastructure as well as regarding spatial
and land use planning. LAND USE PLAN AND ZONING ORDINANCE

Additionally, there is a discrepancy between the legal Cebu’s City Planning and Development Office is in
status among the different 13 Local Government Units charge of developing the Comprehensive Land Use Plan
in Cebu City. The Metropolitan area combines three (CLUP) that should establish the “developmental pace,
independent cities (Cebu, Mandaue and Lapu Lapu), directions and strategies for the optimum use of land
four component cities (Carcar, Danao, Naga and Talisay) resources in the city”35 . The land use plan is then being
and six municipalities (Compostela, Consolacion, enforced through the zoning ordinance.
Cordova, Liloan, Minglanilla and San Fernando).32
However, the current land use plan in Cebu is outdated
While independent cities such as Cebu City fall directly and requires further revisions to bridge the gap between
under the national government, component cities and what is planned and what is built. While the CLUP,
municipalities share responsibilities with the Province according to Executive Order 72, establishes that land
of Visayas. This is reflected in different competencies use plans need to be updated every five years, 36 the last
in terms of service delivery and infrastructure between updated land use plan in Cebu City is from 2006.
the different types of municipalities.33 For example,
independent cities have clear competencies regarding Moreover, the zoning ordinance has not been renewed
transport, roads, flood control and the development of since 1996, 37 showing discrepancies both with the
housing that municipalities and component cities do not CLUP as well as the current state of development and
have. urban growth of Cebu City.
 URBAN ANALYSIS 21

This means current land use plans and zoning regulations For example, the city of Cebu’s Land Use Plan has been
do not offer the adequate regulatory mechanisms to developed in complete geographical isolation from
accommodate the forecasted urban growth in Cebu other LGUs.
in an efficient way, thus risking unsustainable urban
expansion.
EVIDENCE-BASED PLANNING
On the other hand, planning regulatory frameworks
show that there is too much focus on mono-functional There is limited data collection in the city and a
zoning at the expense of mixed use. Instruments for consequent lack of evidence-based planning. Where
enhancing an efficient level of density are not adequately data is collected it is done in an intermittent manner
ensured. For example, there are only two types of and by diverse agencies including the private sector,
residential areas, which allow three- and five-floor universities, NGOs and so on. These is often not
buildings respectively. 38 Moreover, the zoning ordinance consistent and not compiled under one system or
shows an overprovision for parking spaces and, while institution.
there are zoning mechanisms for green spaces, there is
not a city-wide or neighbourhood minimum standard There are national agencies that consistently collect
provision. data on Cebu such as the National Philippine Statistics
Authority, which collects data on housing, population
There are some non-statutory strategic plans which and gross domestic product.
might shape investment in the city. Chief among them
is the JICA-Cebu 2050 strategy which provides seven The lack of data and data-sharing strategies has also
road maps for the city to follow. This includes promoting hindered the planning process in Metro Cebu. The city
the Urban Transport and Highway Network. currently does not collect or store data which can be
used later for planning purposes. As the previous plans
It is also important to consider that, currently, in Metro that were developed do not correspond to the built
Cebu, each Local Government Unit (LGU) develops its conditions of Cebu City, monitoring impact without
own Comprehensive Land Use Plan; Cebu City’s one any baseline data is difficult to achieve. This hinders the
takes it spatially in isolation, resulting in a clear disparity vision of achieving evidence-based planning for the city
in the development between it and neighbouring LGUs. of Cebu.

Fig. 14. Participative Charrette (Source: UN-Habitat)

22 CEBU - City Context Report

INTERNATIONAL ALIGNMENT AND

TECHNICAL RECOMMENDATIONS

Potential Impa c t

The potential impact analysis outlines the main filling the data gaps needed for the development of
benefits that can be potentially attained through the the strategy, the intervention will also support increased
Global Future Cities Programme in each city under data availability in the city. Currently, there is a lack of
three considerations: short-, medium- and long term. metropolitan integration of policies and plans as well
Nevertheless, as impact can arise from a complex as reduced coordination across municipalities. The
interaction of context-specific factors, rather than as development of the city strategy will be carried out in
result of a single action, an empiric impact assessment is consultation with neighbouring municipalities and at
out of the scope of this report. metropolitan level. This could lead to a city strategy that
is integrated within neighbouring land-use plans and is
The short-term refers to the outcomes that can be embedded within a broader metropolitan agenda.
achieved through the implementation of the technical
assistance support within the 2-3 year scope of the Through the development of the City Strategy, there
Global Future Cities Programme. Mid-term outcomes will be increased awareness of sustainable urban
are only achievable once the intervention is executed at development and the Sustainable Development Goals.
the city level either through capital investments or the Achieving the Goals in Cebu City and establishing
legal validation of key polices and plans in a 3-5 year evaluation and monitoring tools in the long run is the
timeframe. Long-term impact of the interventions is backbone of the city strategy. This will contribute to
linked to the sustainability of the interventions in a 7-15 the integration of the Goals into the city’s future aims.
year timeframe and is related to the project cycle phase Additionally, the training for the data hub will include
of operation and maintained. the use of evaluation mechanisms specifically to monitor
the achievement of the Goals.

SHORT-TERM OUTCOME Moreover, participation in plans and strategies will be

enhanced by including participatory processes as part
Within two to three years the Global Future Cities of the main activities in defining the City Strategy.
Programme can have several direct outcomes. First, the Consultation with the community as well as NGOs,
training supporting the implementation of the Data Hub the private sector, neighbouring municipalities and
can contribute to capacity building and increased tools metropolitan institutions will be part of the main steps
for data management and analysis, monitoring and that the city strategy development process will follow
evaluation and the use of evidence for the development in order to design an adequate strategy that is both
of strategies and plans. The training will specifically train realistic and legitimised.
a team within the city authority focusing on how to
make use of the Data Hub in the future. MEDIUM-TERM OUTCOME

The development of a city strategy that is based on In the mid-term, if the city strategy and Data Hub
data analysis and a solid diagnosis will strengthen the is implemented, this will lead to more sustainable
availability of evidence-based policies and plans. Given urbanization including land-use planning, transport
that currently there is no strategic plan for Cebu, this planning and planning for climate change adaptation
can fill a significant gap in the city contributing to better and mitigation. The achievement of these outcomes
and more informed strategies. Moreover, given that the will depend on the legalisation, legitimisation and
intervention will also include data-gathering activities enforcement of the city strategy and the Data Hub.
INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 23

Fig. 15. Alcantara, Cebu, (Source: Wikipedia)

24 CEBU - City Context Report

The strategy will promote sustainable density and mixed First, the sustained implementation of a city vision that
use as well as an efficient land use allocation in order promotes an efficient land use and urban form can
to accommodate population growth in a sustainable contribute to a more efficient population and urban
way. As part of this sustainable urban development growth. This can address the negative externalities
view, affordable housing will be promoted across the of urbanisation such as congestion, lack of adequate
city to contribute to inclusiveness and the reduction infrastructure and public space, inequality and the
of informal settlements in the city. Capital investment proliferation of informal settlements. While economic
projects implemented in Cebu will align to this city view growth is currently happening in Cebu City, negative
and will support its implementation and realization. externalities of urbanisation put this performance under
threat. The intervention can contribute to reversing this
Increased availability of data and analysis skills will trend and thereby enhance sustainable and inclusive
contribute to enhanced tools for better transport economic growth in the city.
and resilience planning. The existence of information
regarding density, land use, congestion and other key The interventions can support the creation of a city that
data will enable more efficient transport and resilience is more connected, less congested and less prone to
planning. Moreover, the existence of a strategy will environmental risks. The existence of strategic planning
allow the different planning sectors to be aligned within as well as the availability of adequate and updated data
the same spatial development goals. can significantly contribute to this purpose. If the city
strategy is constantly updated and coordinated with
The hub will allow for increased data availability and the neighbouring municipalities and at metropolitan
monitoring tools that can facilitate the development of level, this can also enhance the metropolitan planning
better plans, strategies and projects. New infrastructure which is vital to addressing the issues of climate change
projects will benefit from having updated data available and transportation. Moreover, the cooperation across
and therefore additional costs in data gathering and departments that will be involved could foster integrated
analysis will be reduced. Besides, the development of planning between city departments.
better and more informed plans and policies by the city
will be facilitated. Given that the strategy will establish a roadmap to
advance the Goals in the city, the intervention can have
an overall impact in the implementation and significant
LONG-TERM POTENTIAL IMPACT enhancement of them in Cebu. This can have an impact
on the overall sustainability of the city not only in terms
In the long-term, if the strategy and hub are sustained of advancing the urban goals but also for broader
in the future, this could lead to several long-term impact sustainability goals such as gender, human rights and
effects. This will depend on the enforcement and climate change.
institutionalisation of the strategy and the hub in the
long-run as well as having adequate resources to invest
in projects for the strategy and maintain and operate
the Data Centre.

Fig. 16. Cebu City, wikipedia

 INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 25

C o ntributi on t o Sust a i n a b le
U rban D ev el op men t
2030 SUSTAINABLE DEVELOPMENT GOALS

The Global Future Cities Programme aims to contribute SUSTAINABLE ECONOMIC

the implementation of the 2030 Agenda for Sustainable GROWTH
Development whilst mobilising efforts to end all forms
of poverty, fight inequalities and tackle climate change Enhance a sustainable economic growth (SDG 9) by
while ensuring that no one is left behind. reversing the negative externalities of urbanisation such
as congestion, inequalities and urban sprawl.
The interventions offer the opportunity to advance the
Goals and the New Urban Agenda in Cebu City and in
Philippines, with a concrete potential impact to: RESILIENCE TOWARDS
CLIMATE CHANGE

Increasing resilience towards climate change (SDG 13),

flooding and other environmental risks through more
resilient strategic planning and increased availability and
use of data
SUSTAINABLE CITIES AND
COMMUNITIES
Promote the development of sustainable cities and INCLUSIVITY AND
communities (SDG 11) by providing a strategic plan that REDUCED INEQUALITY
establishes a future city view for a connected, inclusive
and mixed-use city that enables city and population Address urban inequalities (SDG10) by promoting a
growth in a sustainable way. city development model that is inclusive and promotes
affordable housing

CAPACITY BUILDING

Increasing the capacity of Cebu City in data management NEW URBAN AGENDA ALIGNMENT
and analysis as well as enhancing the development of
evidence-based plans and strategies (SDG 17). The United Nations Conference on Housing and
Sustainable Urban Development (Habitat III) held in
Quito, Ecuador, in 2016 adopted the New Urban
Agenda, a new framework that that lays out how
INCREASED cities should be planned and managed to best promote
ACCOUNTABILITY sustainable urbanisation.
Fostering participatory processes in municipal strategies
and plans and increased accountability (SDG 16) by The New Urban Agenda encourages UN-Habitat and
enhancing evaluation tools that monitor the city’s others “to generate evidence-based and practical
performance and the achievement of the Goals. guidance for the implementation and the urban
26 CEBU - City Context Report

dimension of the SDGs in close collaboration with sustainable urban growth in the future. Considering the
Member States, local authorities, major groups and current urban growth and expected rise in population
other relevant stakeholders, as well as through the of Cebu City this can have an impact in reversing the
mobilization of experts.” current unbalanced urban growth trend. Moreover,
a city model that promotes affordable housing can
The GFC Programme is directly related to the UN- address issues of human rights by enhancing access to
Habitat’s draft Action Framework for implementation services and housing.
of the New Urban Agenda (AFINUA). This framework is
organized under has five categories: (1) national urban The current vulnerability to climate change and
policies; (2) urban legislation, rules and regulations; (3) environmental risks such as flooding can be addressed
urban planning and design; (4) urban economy and through the intervention by enhancing strategic
municipal finance and (5) local implementation. planning and efficient land use planning that will
provide the best strategies to accommodate growth in
Regarding AFINUA’s goals in Urban Planning and a resilient way avoiding development in risk areas and
Design, the intervention can significantly contribute to coastal reclamation. The use of data and evidence-based
enhancing a city’s urban layout and spatial form that approaches can furthermore enhance this by fostering a
contributes to a more connected (Goal 3.3.), mixed- planning culture in which resilience related data is taken
use (Goal 3.4. and 3.8.), inclusive (Goal 3.7.) and into consideration within projects, plans and strategies.
walkable (Goal 3.5.) city. Moreover, the intervention will
significantly support Goal 3.1. that aims at setting up Finally, the focus of the intervention in achieving the
“a planning and design process that is evidence-based Goals can make sure that other broader issues related
integrated and participatory”. to sustainable development such as gender equality
and youth are enhanced. The new hub will ensure
On the legal side, if the intervention is enforced then that new protocols and data-gathering processes
the city strategy can be formalized through a “legal include disaggregated data in order to monitor the
instrument that is enforceable against all within the improvements in equality of access to opportunities for
jurisdiction and accountable to citizens” (Goal 2.2.). woman and youth.
This is a critical aspect of the implementation that could
define the achievement of mid and long-term impact
in the city. Moreover, the intervention includes the
establishment of monitoring and evaluation mechanisms
for the plan that should contribute to accountability and
making the plan enforceable (Goal 2.9).

ALIGNMENT WITH CROSS-CUTTING ISSUES AND THE

PROSPERITY FUND

In regard to the specific objectives of the Global Future

Cities Programme, the intervention can have an impact
in both removing barriers to prosperity and addressing
the cross-cutting issues.

The four cross-cutting issues of UN-Habitat, as identified

in the Strategic Plan 2014-2019, are mainstreamed
to ensure that all of the agency’s work targets those
with the most need and promotes socially- and
environmentally-sustainable cities. 39 In this regard, the
interventions detailed for Cebu City are shaped under
the mainstreaming of environmental safeguards, youth,
gender equality and human rights.

The interventions in Cebu City can have a significant

impact in removing barriers for prosperity and promote
sustainable and inclusive economic growth. This is helped
by promoting a city vision that addresses the negative
externalities of urbanisation and allows for efficient and
 INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 27

Programme Objectives and

SDG Alignment New Urban Agenda
Cross-cutting issues

Medium Term
Short term

Long term
1. Climate change; 2. Gender equality;
Potential Benefit
3. Human Rights; 4. Youth; 5.
GOALS TARGETS AFINUA KEY ITEM
Sustainable and inclusive economic
growth

17.9., 17.18, Sustainable and Inclusive Economic

Increased capacity in data management and analysis 17 3.1.
17.19, Growth; Human Rights

Sustainable and Inclusive Economic

Increased capacity and tools for monitoring and 17.18., 17.19.,
17 3.1. Growth; Human Rights; Youth;
evaluation 17.9.
Gender Equality; Climate Change

17.9.,17.17., Sustainable and Inclusive Economic

Evidence based City Strategy for Cebu City 17, 16, 10 16.7., 16.10.2, 3.1. Growth; Human Rights; Climate
10.3. Change

Sustainable and Inclusive Economic

Increased data availability 17 17.18, 17.19 3.1. Growth; Human Rights; Youth;
Gender Equality; Climate Change

Integration of Cebu strategy with neighbouring land use Sustainable and Inclusive Economic
11, 17 11.A, 11.B, 17.14. 3.1.
plans and strategies at metropolitan level Growth
Sustainable and Inclusive Economic
Increased awareness of the SDGs, sustainable urban 11.9., 17.9.,
11, 17 3.1. Growth; Human Rights; Youth;
development and urban planning principles 17.14.
Gender Equality; Climate Change
17.17., 16.7.,
Increased participation in developing municipal plans 17, 16, 10 3.1. Human Rights
16.10.2, 10.3.

Sustainable and Inclusive Economic

2.2., 2.9., 3.3., 3.4., 3.5.,
Enhanced efficiency of land use 11 11.B, 11.3. Growth; Human Rights;
3.7.3.8.
Climate Change

11.2., 11.B.,
Sustainable and Inclusive Economic
Better transport and resilience planning 11, 17, 13 17.9., 13.1., 2.2., 2.9., 3.3., 3.5.
Growth
13.2., 13.5.

Increased provision of affordable housing and inclusive Sustainable and Inclusive Economic
11 11.1. 2.2., 2.9., 3.7.
city Growth; Human Rights

Sustainable and Inclusive Economic

Increased use of data and monitoring tools in plans and
17 17.18., 17.19. 3.1. Growth; Human Rights; Youth;
strategies
Gender Equality; Climate Change

Sustainable and Inclusive Economic

11.3., 11.1., 2.2., 2.9., 3.1., 3.3., 3.4.,
Sustainable population and urban growth 11, 17, 9, 10 Growth; Human Rights; Youth;
11.2., 11.B., 11.A. 3.5., 3.7., 3.8.
Gender Equality; Climate Change

11.1., 11.1, 11.2., Sustainable and Inclusive Economic

2.2., 2.9., 3.1., 3.3., 3.4.,
More inclusive and sustainable urban economic growth 11, 10, 9 11.3., 10.2., Growth; Human Rights; Youth;
3.5., 3.7., 3.8.
10.1., 9.1. Gender Equality; Climate Change

Sustainable and Inclusive Economic

Enhanced strategic planning and metropolitan
11, 17 17.14., 11.A. 2.2., 2.9., 3.1. Growth; Human Rights; Youth;
coordination in the city
Gender Equality; Climate Change

Increased integrated planning between departments Sustainable and Inclusive Economic

11.2., 11.B.,
especially regarding resilience, transport and urban 11, 13 3.1. Growth; Human Rights; Youth;
13.1., 13.2., 13.5.
planning Gender Equality; Climate Change

Fig. 17. Potential Impact and Programme Objectives Alignment

28 CEBU - City Context Report

Habitat that promotes adequate space for streets, high

density, mixed use developments with an enhancement
of land allocated for commercial space, social mix and
limited land-use specialisation27.28 At the same time,
the strategy should include adequate provision of
affordable housing that is secured throughout the city
and facilitates access to basic services and economic
opportunities.

Ensuring Efficient Land use as Well as the

Promotion of a Polycentric City Model

S uccess Fa c t or s The urban form of Cebu city is characterised by a

concentration of services, infrastructure and job densities
in the centre and a low-density urban expansion along
the coast. The strategy for Cebu City should address
The following statements are considered as evidenced urban sprawl by enhancing adequate density and
success factors, based on international best practices, efficient land use with the overall aim of promoting
for the interventions in Cebu City. These success factors compactness. Higher population densities should be
aim at defining the implementation phase in order to linked to job, services and infrastructure provision. This
maximise the potential impact of the intervention in can foster agglomeration economies for neighbouring
line with the Goals, the prosperity fund and the cross- businesses and firms and can also have benefits in cost
cutting issues. Success factors are divided into design efficiency. Additionally, the strategy should be linked to
and planning, legal and financial and aim to address the general goal of Metro Cebu to promote a polycentric
potential barriers for the long-term sustainability of the city model by creating economic nodes in strategic
interventions. points, thereby addressing congestion and increasing
access to services and opportunities.

SPATIAL CONSIDERATIONS Participation and Alignment at Metropolitan

Level
Proactive Planning to Plan for Population Growth
The strategy should be based on a planning and design
Metro Cebu is planned to grow from 2.9 million people process that is participatory and includes integration
in 2017 to 3.8 million by 2030.40 However, land across different city departments, municipalities within
availability is scarce due to the topographic constrains the Metro region and a broad scope of different actors
of the city but also the lack of efficient land use planning which include civil society, academia and the private
and coordination at metropolitan level. The city sector. Cebu City shows a lack of coordination across
strategy can enhance proactive planning contributing different municipalities within the metropolitan area,
to anticipating and efficiently allocating resources which can be a considerable obstacle in addressing
for this rapid population growth. This is particularly urban challenges that are intrinsically linked at
important as it can save a lot of time and money spent metropolitan level such as transport, climate change
in retrofitting urban infrastructure and it can avoid the and land-use coordination. Besides, to be integrated
proliferation of informal settlements that could make and comprehensive the strategy cannot be driven by
land allocation difficult in the future for the provision of a single department but should engage all the main
public infrastructure. departments of the city. Finally, community groups,
the private sector and academia need to be part of the
A City Strategy That Promotes the Principles of process as their input can facilitate the development of
Sustainable Urbanisation a better strategy that is also supported and legitimised.

Currently the Cebu City shows an urban layout that does Use of Evidence-based Approaches and
not sufficiently promote affordable housing, mixed use Monitoring Tools
developments, walkability and public space. Sustainable
urbanisation could be enhanced through a city model The city strategy should be based on an evidence-
that follows international principles of sustainable based approach and a solid diagnosis of the main
urbanisation and promotes compactness, connectivity urban challenges of the city. This should include an
and inclusiveness. The Plan can thereby follow the analysis of land use, densities and urban form as well as
Five Principles of Neighbourhood Planning from UN- service provision and transport accessibility. Moreover,
INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 29

Fig. 18. Aerial View (Source: UN-Habitat)

30 CEBU - City Context Report

the strategy should be coupled with specific goals Enhance Land-based Finance for Revenue
and monitoring tools that can allow an evaluation Generation
of the implementation in a future timeframe. In
order to ensure this, evaluation data on the level The implementation of the projects that support the
of implementation of the strategy as well as on the city strategy will need to be coupled with increased
outcomes of the implementation should be regularly revenue streams. In this regard, there is an opportunity
updated. Monitoring of the implementation can include to enhance the use of land-based finance tools for
building permit surveys, land use surveys, satellite data revenue generation that can help with paying upfront
and interviews. investments as well as the long-term operation of the
projects.
The outcomes of the strategy can be assessed through
environmental impact assessments, data on affected Some of the investments in the city strategy will inevitably
individuals and changes in land and property prices as increase land value. Examples include infrastructure
well as other processes. Finally, given that the Goals or urban regeneration projects. Additionally, some
are the main backbone of the city strategy, goals and investments may result in the city having to increase
monitoring mechanisms should aim at assessing the services in certain areas such as laying utilities. Depending
achievement of them in the city. on the context, different mechanisms of land-based
finance such as betterment levies, impact or extraction
Adapt the Data Systems to Their use to the fees can be considered. As explained before, although
Planning Context there are the systems in place for the implementation
of land-based finance mechanisms, there are a few
For the data hub to be successful and used in the challenges for its implementation regarding capacity
long-run, it is important to define the objectives of the and the updating of the valuation of land.
hub and how it will contribute to addressing planning
problems. Data collection should thereby adapt to these Financial Sustainability of the Data Hub
objectives and planning needs. Datasets that are relevant
for planning may include land use, disaggregated data After the implementation of the Programme, the hub
on population characteristics, cadastral, and physical will need to be set up in terms of infrastructure and
geography. personnel. Additionally, to be sustainable the data hub
will need to be operated and maintained which requires
Furthermore, it is relevant to consider how data can be a constant revenue stream. It is difficult to raise taxes
translated into useful planning information. Analysis or fees to fund this type of investment and this is more
techniques may include data layering, visualization, likely to derive from national transfers or loans. However,
exploring relationships between datasets, computational there is also the opportunity for securing the longevity of
models and big data analysis. Information from data the investment and bring in a private sector which may
analysis may be used to understand the local context, have an interest in receiving data over a longer period
make predictions or projections of future growth and of time. The private sector may also have expertise in
develop spatial strategies and visions. understanding how to analyse and therefore utilise and
ultimately monetise the data. However, a data-based
funding stream will have to be set up carefully to ensure
FINANCIAL CONSIDERATIONS the protection of data.

Couple the City Strategy with a Realistic Financial

Plan LEGAL CONSIDERATIONS
In order for the city strategy to be implemented in the
long-run and have a tangible impact, projects and capital Updated and Aligned Land-use Plan
investments need to be aligned with the strategy and
support its realisation. Therefore, the strategy needs to To ensure the long-term sustainability of the strategy
reflect public investments that are realistic and adapted and its implementation, Cebu City needs to update and
to existing city government budgets. While Cebu City align the current land-use plans. Given the importance
has significant capacity in terms of budget per capita, of land-use planning for a variety of outcomes that
as explained above capital expenditures still depend affect efficiency, equity and sustainability, Cebu
significantly from the central government. Furthermore, needs to ensure that the land-use plan facilitates the
the city and coupled investment plans have to adapt implementation of the strategy’s goals.
to the existent income levels. Plans and projects that
assume strategies that are incompatible with income
levels are likely to not succeed and not be enforced.
 INTERNATIONAL ALIGNMENT AND TECHNICAL RECOMMENDATIONS 31

The current plan in Cebu is out of date and does not activities. While specific capacity needs will vary, a
provide the necessary tools to plan for the current and baseline level of digital literacy for urban planning staff
future city. Outdated land-use plans are common across is necessary to ensure the effective application of data
many middle-income cities in the world. To address systems. Capacity-building efforts may include training
this issue it is important that land-use plans are realistic workshops, partnerships with academic institutions or
and implementable and that they are updated every the private sector and hiring of new personnel. Necessary
five years. Moreover, compliance can be enhanced by skills may include geospatial analysis, computer
increasing the costs of delinquency and also supporting programming, statistics and database management.
the processes with capacity training and reducing the
complexity of land regulations

Adequate Zoning Regulations That Promote

Sustainable Urbanization

Similarly, zoning ordinances and regulations need to

support the implementation of the strategy to ensure
a compact and mixed-use city model. The zoning
ordinance needs to include zoning strategies and
regulations to achieve the optimal mix of land use
and to enhance mixed-use developments. Mixed-
use, single-use, inclusionary and conservations are
some of the zoning mechanisms that can be used to
plan for sustainable neighbourhoods. Through these
mechanisms single land use should be minimised and
mixed-used developments should be enhanced, with a
special focus in ensuring affordable housing. Land use
specialisation should represent less than 10 per cent of
any neighbourhood and commercial land use should be
40 per cent of floor space.

Formalise Practices for Integrating Data Analysis

Into Decision Making

To ensure that the data hub is being used for planning

purposes and is therefore useful and sustainable in the
long-term, it is important to introduce legally-formalised
practices that incentivise the use of data in decision-
making processes. In this regard, it is necessary to
develop protocols and policies for data applications in
both the planning and monitoring phases. Additionally,
through the establishment of adequate regulatory
environment in terms of data sharing, standardisation
of data, privacy laws and data quality assessments can
ensure the implementation of a solid data architecture
that supports the functioning of the data hub.

Build Capacity for Data Systems and

Management

With the aim of ensuring the long-term impact of the

data hub in the city, it is important to develop human
capacities and quantitative skills within the planning
profession. This ensures that data is used by public
servants in their decision-making process and planning
32 CEBU - City Context Report

ENDNOTES
sunstar.com.ph/article/168217
25 Asian Development Bank (ADB), Philippines: Public-Private
Partnerships by Local Government Units, Manila, ADB, 2016,
<https://www.adb.org/sites/default/files/publication/213606/
philippines-ppp-lgus.pdf> [accessed 13 September 2018].
26 P Felicitas, Cebu City ‘will be debt-free’, in SunStar Philippines,
2015, <https://www.sunstar.com.ph/article/18192/> [accessed 2
October 2018].
27 Ibid 3
28 Department of Finance, 110 of the 143 cities use outdated ba-
sis for collecting real property tax, in Department of Finance,
2018, <https://www.dof.gov.ph/index.php/tax_watch/lgu-2/>
[accessed 28 October 2018].
29 Zoning Ordinance | Zoning | Building Code, 2018, <https://www.
scribd.com/document/286956549/Zoning-Ordinance> [accessed
31 October 2018].
30 Ibid 3
31 E Slack, Options for the design of a Greater Kampala
1 Philippine Statistics Authority, Cebu Quickstat - February 2018, Metropolitan Authority, in IGC, 2017, <https://www.theigc.org/
2018, <https://psa.gov.ph/content/cebu-quickstat-febru- project/options-design-greater-kampala-metropolitan-authori-
ary-2018> [accessed 24 October 2018]. ty/> [accessed 15 September 2018].
2 JICA, The Roadmap Study for Sustainable Urban Development in 32 Ibid 3
Metro Cebu, Cebu City, JICA, 2015 33 Republic of the Philippines, R.A. 7160, in The Lawphil Project,
3 OECD, Green Growth in Cebu, Philippines, OECD Green 2018, <https://www.lawphil.net/statutes/repacts/ra1991/
Growth Studies, Paris, OECD Publishing, 2017, <http://dx.doi. ra_7160_1991.html> [accessed 22 September 2018].
org/10.1787/9789264277991-en> [accessed 10 October 2018]. 34 D Ostojic et al., Cebu City in Energizing Green Cities In
4 Ibid 3 Southeast Asia, Washington, DC, World Bank, 2018, <https://
www.worldbank.org/content/dam/Worldbank/document/EAP/
5 Ibid 2
region/sueep/energizing-green-cities-cebu-city-philippines.pdf>
6 Atlas of Urban Expansion, Cebu City, 2018, <http://www.atlaso- [accessed 13 September 2018].
furbanexpansion.org/cities/view/Cebu_City> (accessed 1 October
35 Planning, Development and Zoning - Cebu Investment Guide,
2018).
2018, <http://cebuinvestmentguide.com/content.php?id=87>
7 Ibid 4 [accessed 18 September 2018].
8 Ibid 2 36 Housing and Land Use Regulatory Board, Executive Order No.
9 Ibid 9 72, in Land Use Planning, 2018, <http://hlurb.gov.ph/wp-con-
10 L Montenegro, E Remedio & A Diola, The Environmental Costs tent/uploads/laws-and-issuances/EO_72.pdf> [accessed 2
of Coastal Reclamation in Metro Cebu, Philippines, Cebu October 2018].
City, Economy and Environment Program for Southeast Asia 37 D Bongcac, Cebu city zoning ordinance left hanging, in Cebu
(EEPSEA), 2005. Daily News, , 2014, <https://cebudailynews.inquirer.net/43949/
11 City Development Council of the City of Cebu, Cebu City cebu-city-zoning-ordinance-left-hanging> [accessed 25 October
Comprehensive Land Use Plan, Cebu City, City Development 2018].
Council of the City of Cebu, 2018 38 Zoning Ordinance No. 1441/1996
12 Data from Department of Environment and Natural Resources, 39 UN-Habitat Cross-Cutting Report 2017
http://r7.mgb.gov.ph/geohazard-maps/, (accessed 30 November 40 Ibid 1
2018)
13 Ibid 3
14 The World Bank, Projects: Cebu Bus Rapid Transit (BRT) Project |
The World Bank, 2014
15 Ibid 2
16 Ibid 6
17 UN-Habitat, A New Strategy of Sustainable Neighborhood
Planning: Five Principles, Nairobi, UN-Habitat (United Nations
Human Settlements Programme), 2015.
18 Ibid 11
19 Ibid 3
20 Government of Cebu, Annual Budget 2017, https://www.ce-
bucity.gov.ph/attachments/article/3690/Summary%20of%20
Appropriations%20-%20GF.pdf, (accessed 30 November, 2018)
21 Ibid 3
22 This is underlined in the 2017-2022 Public Investment Program
of the Philippines which can be read here: http://www.neda.gov.
ph/2017/01/24/2017-2022-public-investment-program/
23 Ibid 3
24 The 2018’s budget is projected to be lower. See: https://www.
UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME
P.O. Box 30030, Nairobi 00100, Kenya 
www.unhabitat.org