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 Philippine Institute for Development Studies

Providing a Metropolitan Perspective

to Development Planning:
Cagayan de Oro
Ruben G. Mercado and Casimira Balandra
DISCUSSION PAPER SERIES NO. 98-14 (Revised)

The PIDS Discussion Paper Series

constitutes studies that are preliminary and
subject to further revisions. They are be-
ing circulated in a limited number of cop-
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unedited and unreviewed.
The views and opinions expressed
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sarily reflect those of the Institute.
Not for quotation without permission
from the author(s) and the Institute.

October 1998

For comments, suggestions or further inquiries please contact:

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Or visit our website at http://www.pids.gov.ph
 Providing a Metropolitan Perspective
to Development Planning: Cagayan de Oro

Ruben G. Mercado and Casimira V. Balandra1

1. Introduction

Cagayan de Oro (CDO) is one of the important cities in the country being the
regional capital of Northern Mindanao, considered the primary gateway to the rest of the
Mindanao regions. Being a port city, it plays the role as a transhipment hub and is
economically linked especially with the other port cities in the other islands of the
country. With a population of over 400,000 people occupying mostly the urban portion
of its 469 square km. area, the city’s socio-economic and political influence extends to
another 400,000 people sparsely distributed in almost 3,400 sq. km. area which are parts
of Bukidnon and Misamis Oriental. Not too far it will develop into one of the bustling
metropolises in the country.

The perceived emergence of a metropolis with CDO as the core city led to the
conceptualization of the Metro CDO Special Development Project (MCSDP) in 1990.
With the joint leadership of the Cagayan de Oro-Iligan Chambers of Commerce and
Industry and the support of Regional Development Council (RDC) X and XII, the
MCSDP paved the way for the Cagayan de Oro-Iligan Corridor Special Development
Project (CIC-SDP) implementation starting in 1993. The government-private sector
partnership has allowed for the formulation of the CIC Master Plan and Feasibility
Study for a CIC International Airport completed on November 30, 1991. After two
years of public consultations which ended with the presentation and approval of the CIC
Master Plan by the NEDA Board on September 8, 1992, Executive Order 85 was issued
(on May 5, 1993) which ushered the plan's implementation. But after five years of CIC
investment promotion locally and abroad, so much still needs to be done specially with
respect to developing projects that impact on the originally conceived Metro Cagayan de
Oro.

Recently, there has been a realization that the Metro CDO SDP has been focused
more on the development of the infrastructure links between CDO and Iligan City. Thus,
in 1996, a comprehensive master planning for the Metro CDO was proposed to be
undertaken that will focus more on the planning for Cagayan de Oro City and its
immediate environs. Towards this end, the Cagayan de Oro Government undertook
preparatory consultations with the municipalities in Misamis Oriental including Jasa-an,
Villanueva, Tagoloan, Claveria, Opol, El Salvador, Alubujid, Laguindingan, Gitagum
and the municipalities in Bukidnon including Libona, Manolo Fortich, Talakag,
Baungon, Malitbog and Sumilao. These areas together with CDO City compose the
envisioned Metro CDO. This composition was determined based on their
interdependence in terms of watershed and water supply as well as infrastructure
linkages in terms of seaports, airports and highways. The Misamis Oriental and
Bukidnon provincial governments were also represented in these consultations.
1
Research Associate, Philippine Institute for Development Studies and OIC-Assistant Regional Director,
National Economic and Development Authority (NEDA) Regional Office X (Northern Mindanao),
respectively.

1
 This paper aims to discuss recent developments related to the planning of Metro
CDO and highlight areas needing greater emphasis and further strengthening.

2. Metro CDO Current Development and Prospects

2.1 Demographic Characteristics

Almost half (49.7 percent) of the over 800,00 people in Metro CDO, as it
presently defined, is largely concentrated in Cagayan de Oro City (Table 1). The city
grew at a high rate of 4.75 percent during the period 1990-1995. Ten-year intercensal
growth rate of the city has been high registering 6.5 percent in 1960-1970, 5.9 percent in
1970-1980 and 4.0 percent in 1980-1990.

Table 1
METRO CDO: DEMOGRAPHIC CHARACTERISTICS
Population
City/ Population Level Growth Rate Land Area Density
Municipality 1990 1995 1990-95 (sq. km.) Person/sq. km.

Cagayan de Oro City 339,598 428,314 4.75 469.30 913

Misamis Oriental:
1. Tagoloan 33,919 40,929 3.83 117.73 348
2. Villanueva 17,122 21,310 4.47 48.80 437
3. Claveria 31,130 39,020 4.62 894.90 44
4. Jasaan 29,146 33,598 2.88 77.02 436
5. Opol 20,473 23,958 3.19 80.85 296
6. El Salvador 26,721 31,500 3.34 87.13 362
7. Alubijid 19,531 21,765 2.19 103.45 210
8. Laguindingan 15,503 16,521 1.28 16.74 987
9. Gitagum 10,994 11,327 0.60 43.40 261

Bukidnon:

1. Libona 29,652 31,897 1.47 343.20 93

2. Manolo Fortich 61,329 67,400 1.91 405.19 166
3. Talakag 35,379 39,378 2.16 186.40 211
4. Baungon 19,774 22,617 2.72 245.30 92
5. Malitbog 14,934 16,414 1.91 581.85 28
6. Sumilao 13,494 15,640 3.0 196.95 79

Metro Cagayan de Oro 718,699 861,588 3.69 3,898.21 221

Metro Manila 7,929,867 9,454,040 3.58 633.21 14,930

Philippines 60,677,725 68,616,536 2.49 300,000.00 229

Basic Source: NSO, 1995

The development activities undertaken through the years in terms of

infrastructure support, investment generation, and the promotion of the city as the
regional growth center, especially with the establishment of the country’s largest
industrial estate in the mid-seventies have impacted on other areas especially among the
municipalities geographically close to the city. Thus, one will note that population in
most of these municipalities have been growing at rates over three percent during the
period 1990-1995. Noteworthy of these municipalities include Jasaan, Villanueva,
Tagoloan, Claveria, Opol and El Salvador whose high population growth rates can be

2
attributed to the impact of employment generating projects most especially the
PHIVIDEC Industrial Estate.

Other areas composing the envisioned Metro CDO are also expected to increase
population in both level and rate of growth in the near future. The Northern Mindanao
Regional Development Plan for the 21st Century identified three major events that will
shape the future of CDO City and its environs. These include the construction of an
international standard airport in Laguindingan, the expansion and upgrading of the CDO
Port and the development of the PHIVIDEC Industrial Estate in Tagoloan and Jasaan
where an integrated steel mill will be put up. The implementation of these flagship
programs will boost economic growth and will attract movement of people in these
influence areas.

2.2. Land Use Development

Cagayan de Oro2 is the first city in the country to have a zoning plan. Guided by
the 1962 zone plan its growth further accelerated when it became the regional capital (in
1972) of Northern Mindanao. The region was originally composed of ten provinces and
nine cities. The composition was reduced to seven provinces and seven cities when
Region XII was created in 1976. When Region XIII (CARAGA) was established in
1994, the composition was further brought down to only four provinces and six cities.
Despite the reduction in the region's geographic size, Cagayan de Oro's socioeconomic
influence continues to extend to all these areas and even beyond.

In 1986, its agriculture, pasture and forestlands accounted for 91.5%. At present,
it is down to less than 82% (including open spaces). Almost 60% of agricultural lands
(37% of total) are devoted to corn and coconut; while some 30% to banana, rice and
cassava. The remaining 10% are used to grow abaca, root crops and vegetables.

While built-up areas then, was only 8.5%, to date it is a little over 18%, and still
growing with residential districts/areas alone increasing from 4% to 12.4% in just a
decade. The central business district (CBD) which includes commercial and institutional
areas, parks and plazas accounts for a little over 4%, while industrial is just about 2%.
(Table 3)

The full development of the Phividec Industrial Estate-Misamis Oriental (PIE-

MO) and the strategically located mini-industrial parks/estates will impact on the overall
development of the corridor including the hinter areas which should by then be reached
thru farm-to-market and by pass roads.

2.3 CDO: Mindanao’s Transhipment Hub

Cagayan de Oro City, while being primarily agricultural, has become one of the
important commercial centers not only for Mindanao but also for the Philippines owing
to its strategic location as a port city. As a transshipment hub, the city’s international
seaport and trunkline airport facilitate the flow of people and cargoes from the Visayas
2
Cagayan de Oro became a chartered city on June 15, 1950 during the presidency of President E. Quirino.
Among the five cities studied in mid-60's under the Regional Cities Development Project (RCDP),
Cagayan de Oro was among the best planned, owing to its first Land Use/ Zoning Plan dating back to 1962.

3
 and Luzon to all points in Mindanao and vice versa. This is through a network of
highways originating from the Agora station which is just a five-minute drive from the
seaport and 20 minutes from the airport.

Table 2
EXISTING LAND USES
1986 1996

Agriculture & Forestry 91.5% 81.89%

Agriculture 37.0

Pasture 38.0
Forestlands 14.0
Wetlands & 2.5
Misc.

Built-up Areas 8.5% 18.11%

Residential 4.1
Others 4.4

- Institutional, parks & plazas & - 4.05

commercial
- Residential - 12.38
- Industrial - 1.68
-
Total 100.0% 100.0%
Source: City Planning & Development Office, Cagayan de Oro City

Foreign ships unload and pick up cargoes coming from as far south as Davao
City. Cagayan de Oro is the gateway of people and cargoes going to and coming
from the other port cities in the Visayas and Luzon. Luxury liners, waterjets and
passenger-cargo boats ply the Cagayan de Oro-Manila route (via Cebu, Iloilo or Bohol)
almost daily. Moreover, owing to Cagayan de Oro's long standing trade links with
Cebu, the Cagayan de Oro-Cebu route has the heaviest traffic as maybe gauged by the
2-3 passenger-cargo and waterjet trips daily by four of the country's major shipping
companies. (WGA Ferries, Sulpicio Lines, Trans-Asia, and Negros Navigation). A
random interview of many arriving passengers confirmed that their final destination is
not only Cagayan de Oro but also, Bukidnon, Camiguin, Lanao, Davao and even
Cotabato and Zamboanga. During the last three years, the passenger and cargo traffic
rose by 14.7% and 3.6%, respectively (Table 2). The Agora bus station is bustling with
passengers to/from all major centers in Mindanao, specially the Cagayan de Oro-
Bukidnon-Davao route, on a 24 hour basis. On the other hand, the Cagayan de Oro
trunkline airport serves the needs of the Cagayan-Iligan Corridor and its influence areas
as far as the provinces of ARMM and Region XII. The Cagayan de Oro airport is
served by four airline companies, (PAL, Cebu Pacific Air, Grand Air, and Mindanao
Express).

4
 Table 3
PASSENGER AND CARGO TRAFFIC
CDO-PMO and Airport
1995 1996 1997
P C P C P C

CDO-PMO* 2,137,682 4,085,281 m.t. 2,147,787 4,329,517 m.t. 2,748,777 4,385,351 m.t.

Airport 324,442 8,263 m.t. 353,872 9,093 m.t. 516,571 9,129 m.t.
Total 2,481,124 4,093,544 m.t. 2,501,659 4,329,610 m.t. 3,265,348 4,394,480 m.t
Annual Growth Rage (1995-97): 14.7% 3.6%

* CDO-PMO covers the parts of CDO, Mis. Or. & Camiguin.

Source: PPA 10 & ATO 10

2.4 Economic and Financial Activities

From the 1989 Survey of Establishments by the Department of Trade and

Industry, 14% or 8,312 of the business firms in Northern Mindanao (the old Region 10)
were located in Cagayan de Oro City. About two-thirds of the total were trading firms;
almost one-fourth were service establishments; and the remaining 10%, manufacturing
and agri-business. (Table 4)

Table 4
TYPE OF BUSINESS ESTABLISHMENTS

SECTOR NUMBER % SHARE

Trading 5,486 66.0

Service 2,070 24.9
Manufacturing & Agri-business 756 9.1
Total 8,312 100.00%

Cagayan de Oro serves as the commercial center of Northern Mindanao. Taking

the lead in trading are those dealing with consumer goods, construction materials,
hardware and auto supplies, and agricultural products most of which are produced in the
region. Its dominant industries are food processing, furnitures and metalworks.
Agribusiness largely constitutes livestock and poultry, and fruits/crops production and
processing.

Cagayan de Oro is likewise the financial capital of Region 10 and nearby areas.
In anticipation of more growth in commerce and industry especially along the corridor,
banks and financial institutions have converged phenomenally in the regional capital.
More than 60 bank-branches, 200 or more financial institutions including pawnshops
have located in the city. Many of the banks provide regional banking services with
broader authority base to act with dispatch on major financing and credit decisions
involving domestic and foreign transactions. The frenzy of activities within the Metro

5
Cagayan de Oro and its influence areas paves the way for specialized credits like Quedan
financing, IGLF, integrated rural financing, including Barangay Credit Guarantee
Schemes, among others. The government likewise offers regional development funds
for agri-business, SMEs, schools and hospitals, as well as, special development
financing for the strategic sectors, like, transportation and communication, power and
other utilities, on a long term basis. The other service sub-sectors are those that are
supportive of tourism like hotels and restaurants, travel agencies, rent a car services,
tailoring and recreation parlors. Warehousing, trucking service and auto repair shops are
located in strategic places.

2.5 Major Infrastrucutre and Utilities Development

2.5.1 Flagship Projects

As have been mentioned in the preceding sections, the Northern Mindanao Plan
for the 21st century (RDP21) identified three major events that will shape the future of
Metro Cagayan de Oro and its environs. These are: 1) the construction of the CIC
international standard airport in Laguindingan, 2) the expansion/upgrading of the
Cagayan de Oro Port or the establishment of a Cargo port at the PIE-MO, and 3) the
putting up of the Integrated Steel Mill (ISM) at the PIE-MO, the country's largest
industrial estate.

The first two will further enhance Metro Cagayan de Oro as a major
transshipment hub of Mindanao. The CIC airport will likewise hasten the construction of
by-pass/farm to market roads 1) to decongest traffic along the existing highway, 2) to
facilitate movement of people from as far as Bukidnon to this new airport, as well as, 3)
to open up the resource-rich areas within the hinter part of the corridor and bring them
closer to the markets. The alternative option of establishing a new commercial cargo
port at the PIE-MO will shorten travel time of cargoes coming all the way from Davao -
but most importantly, it will unclog the worsening traffic in the city proper (with the
cargo component of the port service out).

The establishment of an integrated steel mill at PIE-MO will induce both

upstream and steel-metal based downstream industries that will enhance the full
development of the PIE-MO including SMEs within the impact area. Agriculture
development could also be boosted with the manufacture of appropriate farm tools and
implements. Farmers will likewise be motivated to achieve higher productivity levels to
ensure adequate inputs for processing.

2.5.2 Highways/Roads, Bridges and Railway

CIC Highways/Roads

Very essential to the development of the hinterlands and remote areas of the
Metro Cagayan de Oro and the Corridor is a network of improved farm to market roads
connecting these areas to the highways and the markets. Both RDC 10 and 12 have
indorsed this proposal for DPWH central office consideration. This proposal
complements the CIC Highway Expansion Project from Jasaan, Misamis Oriental to
Tubod, Lanao del Norte for a total length of 157 km. at the cost of P1.9 B. This
Highway Expansion project is envisioned not only to ease up the worsening traffic

6
problem along the Iligan-Cagayan-Butuan roads but also to facilitate the integration of
the Corridor with other growth centers in Mindanao.

CDO Bridges

The Cagayan river which separates the City into the eastern and western bay
areas is presently connected by only two bridges: one of an early 20th century American
vintage steel bridge and another which is a wider Marcos-era concrete bridge.

Considering that the airport, as well as, new middle and upper class subdivisions
are in the western bay; while the seaport, the bus station and the shopping malls are in
the eastern side, the worsened traffic problems can be solved only with the construction
of two more bridges. The Puntod bridge will require another access road and bridge
across the Iponan River, thus, requires more budget than the Macasandig-Upper
Balulang bridge which will decongest the Upper Balulang traffic caused by the airport
and the mushrooming middle and upper class subdivisions with world class golf course.
Both have an initial budget of P50 M (CDF) and P23 M (Cagayan de Oro Government
Budget), respectively.

Another bridge provides the critical approach from the city proper to the
country's largest industrial estate, the PIE-MO. This is part of the Cagayan de Oro-
Butuan backbone which services vehicles to/from Davao, Butuan and Surigao and even
all the way from/to Visayas and Luzon thru the Lipata, Surigao Ferry Service Station.
The bridge which requires a prestressed concrete parallel with a capacity of 20-25 tons
needs a P166 M budget and targetted to be finished by 2000.

Mindanao Railway and Metro CDO/CIC-Wide LRT Project

The entire project involves a 1,436 km. single railway line passing thru major
cities in Mindanao. Phase I of this project will originate from Iligan City passing thru
Cagayan de Oro-Bukidnon and ending in Davao City. At least 10 local and foreign
companies have reportedly expressed interest to form a consortium to undertake the
project by BOT. While the Cagayan de Oro government had already signed in
1997 a MOA with the Metro Cagayan de Oro LRT Project consortium for the conduct of
FS for the construction, finance and operation of the LRT system, the DOTC
recommends the inclusion in the study of the entire CIC stretch to ensure financial
viability of said project.

2.5.3 Telecommunications

Metro Cagayan de Oro now enjoys an 8.20 telephone per 100 persons density
and even the entire CIC enjoys a 5.6 density which are definitely higher than the
national average of 4.09 in 1997. This is the favorable result of the deregulation of the
telecommunications industry thru EO 109 known as the Service-Area-Scheme.
However, the bane of the present system is the absence of interconnection among the
service providers/telephone companies.

By the year 2000 a total of 222,503 lines shall have been installed and subscribed
to in Metro Cagayan de Oro. This constitutes a 193% increase over what were installed

7
and subscribed to as of 1997. (Table 5) Hopefully by then, these various telephone
systems shall have been interconnected.

Table 5
METRO CAGAYAN DE ORO TELEPHONE SITUATION
CURRENTLY
INSTALLED PLANNED PROJECTED TOTAL
COMPANY/TYPE LINES/ EXPANSION (2000)
SUBSCRIBED (1998-
2000) # of Lines Ave. Annual
TO (1997)
Growth Rate
1. MISORTEL digital (Cagayan de Oro, Alubijid &
Claveria) 10,900 38,450 49,350 65.4%

2. Cellular Mobile Telephones (CDO) 27,311 27,311 -

EXTELCOM 7,897 - 7,897 -
PILTEL 5,000 - 5,000 -
SMART 10,000 - 10,000 -
GLOBE TEL 1,714 - 1,714 -
ISLACOM 2,700 - 2,700 -

3. ITALTEL (NTP Tranche 1-3) 7,152 14,838 21,990 45.4%

Phase II (Cagayan de Oro) 7,152 5,698 12,850 21.6
Phase IV (Misamis Oriental) - 9,140 9,140 -

4. PHILCOM (Major Telecoms) 29,280 92,553 121,833 60.8%

4.1 Cagayan de Oro 29,280 54,462 83,742 41.9%
4.2 Misamis Oriental - 38,091 38,091 -

5. WEMORTELCO (Opol-Lugait) 219 - 219 -

6. PLDT (PHIVIDEC) 1,020 780 1,800 20.8

CURRENTLY
INSTALLED PLANNED PROJECTED TOTAL
COMPANY/TYPE AND LINES/ EXPANSION (2000)
SERVICE AREA SUBSCRIBED (1998-
2000) # of Lines AAGR
TO (1997)

I. Metro Cagayan de Oro

Total 75,882 146,621 222,503 43.1%

Digital 48,571 146,621 195,192 58.99%

Cellular 27,311 - 27,311 -

Density 8.2 tel/100 persons 21.5 tel/100 persons

II. Lanao del Norte/Iligan City 20,602 27,368 47,970 32.5%

Digital 13,752 26,668 40,420 43.2%

Analog 200 - 200 -
Density 4.0 Tel/100 persons 19.2 tel/100 persons

CIC Total: 96,484 270,473 41.0%

Digital 62,323 173,289 235,612 55.8%

Cellular 33,961 700 34,661 0.7%
Analog 200 - 200 -

CIC Density 5.6 tel/100 persons 21.1 tel/100 person

Source: CIC-SDP PMO 1997 Accomplishment Report

8
3. Approaching Metro CDO Development

A Growth Center Perspective

Metro CDO is presently viewed in the context of a regional growth area. Lying
at the central section, identified in the Mindanao 2000 Development Framework Plan as
the North Coast Economic Growth Cluster (the land mass from CARAGA in the
Northeast to Panguil Bay in the Northwest), Metro Cagayan de Oro is expected to
sustain its crucial role of linking and unifying this high potential growth cluster for both
agricultural and industrial development. The North Coast Growth cluster with the
Metro-Cagayan de Oro and Iligan Corridor at the center is envisioned in the next 15
years development period to play triple roles. These are: 1) Domestic Food Basket and
Agri-Industrial Exporter; 2) the Industrial Corridor of Southern Philippines; and 3) the
gateway to the domestic market with potentials for creating market niches in the
Northeast Asian Markets.

The current Metro CDO Special Development Project is basically aimed at

spurring the growth of Northern Mindanao Region through the implementation of
strategic infrastructures including seaports, airports and highways as well as the
promotion of agri-industrial activities including industrial estate development in CDO
City and its environs. Corollary to this, most recently, a master planning of Metro CDO
is being proposed to be undertaken. The development of the master plan is conceived
within the framework of this growth center strategy with the objective of producing a
plan, essentially a land use plan for CDO and the 15 adjoining municipalities that will
serve as basis for amending zoning ordinances, guide for land reclassification and
direction for government and private initiatives on their investment decisions.

A Metropolitan Perspective

An important complementary perspective of looking at CDO City and the

neighboring municipalities as a regional growth center is to view it as an emerging
metropolitan settlement. There are already indications of CDO City behaving like a
widely sprawling city, spreading its influence to nearby municipalities. It is difficult now
to distinguish the city’s boundaries as differentiation between localities is already being
virtually erased. For example, the DMPI plantation in Manolo Fortich (Bukidnon) and
the Industrial Estate of Tagoloan-Villanueva (Misamis Oriental) are part of Cagayan de
Oro City's tourism-investment promotion package.

Moreover, the normative experience of a metropolis which includes urban blight

and decay in the inner core resulting from slum dwelling, mounting garbage and rising
criminality are being already felt even at this stage. The spill over effects of urban
sprawl specially relative to population pressures on agricultural land conversions for
urban uses such as housing and industry are a threat to food security. Enticed by better
income opportunities and the good life in the city, farm workers have abandoned their
seasonal farm activities in search of the proverbial greener pasture but only to be land in
odd jobs or end up as beggars in the city. Thus, a paradigm shift in planning and
management has to be looked into to be more prepared in the immediate future to deal
with more complex issues inherent in a metropolis.

9
4. Metropolitan Concerns in the CDO Area

Current urban concerns which transcend local boundaries and assume a

metropolitan character and scope have been identified by regional and local officials in
the region and have been recognized as major challenges that will have to be addressed
under the region’s development plan for the next century. These include water supply
and distribution, solid waste management and transport and traffic management.

4.1 Water Supply and Distribution

In the city proper, water is not yet a problem with a density of 13 persons to a
Level III facility or 9 persons per combined Level II and Level III facility. However, the
adjoining municipalities as components of the Metro Cagayan de Oro are still partly
served by Levels I and II with one municipality each of Bukidnon and Misamis Oriental
largely served only by Level I (Table 6).

While the water supply may not yet be a critical problem on the whole, there is a
growing concern on the existing uneven water distribution among the households in the
various LGUs. With the increasing rate of population, primarily due to in-migration and
the entry of new industries, water supply sufficiency is threatened even within the city
proper. There are ample evidences that the per capita cost of developing an effective and
efficient water distribution system across municipalities is much less if done in an
integrated fashion. The master plan for Metro Cagayan de Oro must consider a water
distribution and management program which is integrated and holistic.

4.2 Need for Improved Solid Waste Management

One of the most thorny issues confronting highly urbanized cities concerns the
improvement of solid waste management. As pointed out in the region's physical
framework plan (RPFP, 1995-2025), the indiscriminate disposal of wastes by
households, institutions and industries into waterways and waterbodies (lagoons, rivers
and seas), is a major challenge requiring a long-term solution, as it is causing water
pollution specially of the major water supply sources for domestic and
industrial/commercial uses.

Under the Local Government Code of 1991 (RA 7160), both waste collection
and disposal are now a responsibility of the LGUs. For most LGUs waste collection is
presently managed quite effectively. However, waste disposal is a big problem for
some, specially relative to the choice of a landfill site whose pollution effects will not
spill over to the nearby LGU. For instance, in the case of Tagoloan its landfill lies along
the precipice of a highway boundary towards Malitbog, Bukidnon where the wastes are
eventually scattered in a nearby creek (Malitbog side). Another difficulty usually faced
by the LGUs is the costly establishment and maintenance of a landfill site or an
incineration facility . Discussions among municipalities will ensure a workable
arrangement especially concerning the issue of landfill site identification, waste
recycling program that can be jointly implemented by a cluster of LGUs and
arrangement relative to cost sharing and management.

10
 Table 6
1996 WATER SUPPLY FACILITIES
Number of Facilities by Level Potential
Population
Level I Level II Level III Sources
1. Cagayan de Oro 427,627 0 31 46,519 -
2. Tagoloan 42,543 859 173 2,469 Rosario
spring
3. Villanueva 23,080 142 10 2,957 Imelda
spring
4. Jasaan 36,251 116 70 3,840 *
Springs
5. Claveria 37,021 166 96 526 Mat-i spring
6. Opol 20,473 122 7 590 Spring
7. El Salvador 26,946 136 99 155 Deepwell
8. Alubijid 22,265 565 201 415 Spring
9. Laguindingan 17,677 58 125 514 Spring
10. Gitagum 12,231 62 96 471 Spring
11. Libona 31,821 258 32 1,923 Sil-ipon
spring
12. Manolo Fortich 70,331 65 172 4,023 -
13. Talakag 38,719 39 10 362 -
14. Baungon 22,655 716 55 179 Pat-pat
spring
15. Malitbog 17,044 27 84 288 Spring
16. Sumilao 13,378 56 69 350 Lupiagan
Spring
TOTAL 860,062 3,387 1,330 65,581
Level I - Deepwells, shallow wells, spring deve-lopment
II - Community faucets
III - Individual faucets

Source: Assessment of the Domestic Water Supply and Sanitation Sector of Northern Mindanao (for
NEDA-RDC 10) by Schema Konsult, Inc. (August 1996)

4.3 Worsening Traffic Congestion

As in other highly urbanized cities, traffic congestion in CDO is becoming a

serious problem. Most of the work establishments in the city have adopted a “flexi-
time” work schedule in view of the unpredictability of heavy traffic occurrences. The
problem has been attributed primarily to the roads already made narrow by the
tremendous increase in the number of vehicles that ply the area. The heavy traffic
occurrences or major choke points are the intersections in front of the City Hall
and after the Carmen bridge leading to the Cagayan de Oro International Airport, the JR
Borja Hospital and the Carmen market; the crossing in front of the malls/commercial
complexes specially that which leads to the Agora Market and the Cagayan de Oro port.
The worst traffic happens within a stretch of a kilometer where one goes thru six choke
points from the Ororama Megamall to the Licoan (leading to the Cagayan de Oro port or
the Divisoria.), and the intersection at the western end of the Marcos bridge.

*
Napapong spring
Dagulos spring
Inlomayang spring
Bunuang spring

11
 The increased economic linkages between the eastern and western bay areas and
the surrounding municipalities/cities on both sides, have increased the mobility of both
people and goods. Strategic infrastructure development including road widening,
construction of two more bridges, and installation of a Metro rail transit will help
decongest the traffic not only within the Metro Cagayan de Oro area, but also, the
Cagayan-Iligan and the Cagayan-Bukidnon-Davao Corridors. In the future, a more
purposive coordination among the concerned provinces, cities and municipalities will
improve traffic management.

5. Metro CDO Planning and Governance

Both the opportunities/potentials and concerns/challenges that transcend

geopolitical boundaries within an area like Metro Cagayan de Oro, have implications on
the planning of an emerging metropolis. Singly, an LGU cannot efficiently nor
effectively handle the type and magnitude of concerns and services which have spill over
effects on nearby LGUs. Traditional urban planning approaches confined to a single
political unit would have to shift to metropolitan planning and governance whose powers
can transcend the LGUs’.

5.1 LGU Preferences on the Sharing Pattern of Urban-Related Activities and Service
Delivery

Majority of the LGUs have expressed their desire and willingness to collaborate
with the Metro Cagayan de Oro in undertaking the following activities:

a) Planning Activities - 80%

b) Delivery of public health services, along with - 80%
hospital grants and ambulance services
c) Police and Fire protection - 67%
d) Housing and Resettlement - 60%
e) Public Transport:
Infra and Traffic Management - 60%
f) Garbage collection, recycling and disposal - 53%

The desire to collaborate with the line agencies and/or the private sector were
also indicated in some areas.

1. with line agencies

a) Planning - 53%
b) Health - 47%
c) Housing - 47%

The institutional mechanism should not create ruinous competition among

implementing agencies/LGU/NGOs. Rather, it should serve as the problem-solving
body that will cut red tapes and enable the community to participate in the decision
making process. As the Metro Cagayan de Oro is making progress, the installed

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institutional mechanism need to maintain the momentum of change in the component
LGUs/areas.

The members of the Metro Cagayan de Oro governing body must complement
and collaborate for greater results. Any unabated conflict between and among member
LGUs, agencies or NGOs can be dysfunctional to the entire system and impede the
progress of the metropolis.

With NGO's/the private sector, the LGUs are willing to cooperate on two areas.

2) with NGOs/Private Sector

a) Garbage collection and

Disposal/recycling - 40%
b) Housing & Resettlement - 40%

Very few favor the undertaking of activities of the Metro Cagayan de Oro only
with out the LGUs' collaboration, along the following areas:

a) Transport - 40%
b) Garbage collection and disposal - 20%
c) and Housing/Resettlement - 20%

Relative to activities for LGU undertaking only, the results are as follows:

a) Licensing & Inspection - 80%

b) Finance and Taxation - 73%
c) Planning, particularly land use planning - 67%
and zoning
d) Housing and Resettlement - 67%
e) Garbage collection/disposal - 53%
f) Health Services - 53%
g) Police and Fire Protection - 53%
h) Public Transport - 40%

The LGUs' responses show their eagerness to do by themselves many of the

important activities or provide those services over which they would want direct
responsibility. However, they are ready or willing to collaborate with Metro Cagayan de
Oro as a conglomerate body, with the agencies, and the NGOs in many of these
concerns. In fact, some expressed their impatience at the slowness of the process of
metropolitanizing Cagayan de Oro to enable them to deliver better and higher level of
facilities and services.

The installation of an institutional mechanism for metropolitan governance

within Metro Cagayan de Oro is a unique challenge in itself. The models in Mindanao
are those of the Area Development Board of SOCSARGEN and the CIC Steering
committee of the CIS-SDP. These institutions operate as coordinative mechanisms that
can provide a forum not only to coordinate the broad concerns of development but also,
facilitate the implementation of inter-agency/inter LGU projects by concerned

13
agencies/LGUs. They also provide the mechanism for encouraging participation and
support of national agencies, LGUs and NGOs, private sector.

5.2 Existing/Potential Barriers to Metro CDO

The LGUs were candid in pointing out some critical barriers to

metropolitanization as follows:

5.2.1 Non-involvement of the provincial governments in the organizational process.

The support of the provincial governments is crucial for the smooth functioning
and enjoyment of mutual benefits. But the initial reluctance of the provincial government
of Bukidnon stems from the unclear delineation of what type of development will
happen in the participating LGUs. Moreover, there is an emerging fear of losing its
municipal constituents once these political units join Metro Cagayan de Oro.

5.2.2 Lack of Political Will Among Member-LGUs

Some LGUs bewail the lack of political will and the lack of commitment of
some participants. However, they reason out that probably this is caused by the
slowness of the organizational process as initiated by Cagayan de Oro City (with DTI
serving as the Secretariat of the Regional Growth Center Committee). Probably, the lack
of commitment also stems from the unclear understanding of a metropolitan
arrangement and the roles they will play in such a metropolitan set-up.

5.2.2 Inadequate Resources to Contribute to the Metropolitan Arrangement

Some LGUs fear that because they are "small and poor" they can be gobbled up
by the giant such as Cagayan de Oro City. They fear that because they cannot
contribute enough, they can just be made the dumping ground of the metro's toxic
industrial and unrecyclable wastes and that they might just be the receiving end of the
city's industrial pollution.

6. Concluding Remarks

Metro CDO is presently regarded as a regional growth area. In the long-run,

however, it would be inevitable to view the area as an urban area transforming itself into
a metropolitan settlement. While there is yet to evolve a functioning Metro CDO, it may
not be long, though, for this to be evident considering the rapid urbanization being
experienced in the area and which will further accelerate as industrialization and trading
activities are vigorously pursued.

The results of the survey show an overwhelming 80% acceptability of the shared
responsibility of metropolizing Cagayan de Oro. The LGUs are convinced that the
development of metropolitan Cagayan de Oro will stem from the synergistic cooperation
of all concerned: the city, the 15 municipalities along with the two provincial
governments, the line agencies, the NGOs/private sector, the citizenry, and the Regional
Development Council. The 20% hesitation does not mean outright reluctance or non-
acceptance but indicative of the need for clearer understanding of the whole concept, a

14
 greater appreciation and understanding of their responsibilities and duties as well as the
benefits that could be derived from a metropolitan arrangement.

There are two basic tasks which the LGUs composing the Metro CDO have
rightly identified. The first is the need to hasten the organizational process to set the
momentum for action. Once established, the second task is to undertake a meaningful
master planning for Metro Cagayan de Oro which shall proceed from a comprehensive
review and analysis of human resources, natural endowments, economic advantages and
opportunities, as well as socio-political institutions that will enable Metro Cagayan de
Oro to define its power base. This will serve as the bench mark for framing doable
initiatives with which to respond to the complex challenges and concerns of the
emerging metropolis.

How policymakers regard the area would have implications not only on the
concerns from which development programs shall be based but also on the institutional
mechanism that will be established to address the formidable tasks at hand. It is, thus,
important to clearly make a dichotomy on the perspective placed on Metro CDO as a
geographical subject for development. Taken as a regional growth area, Metro CDO can
be seen as a strategic area for locating major infrastructural and capital investment to set
the stage for the economic growth of the region. Seen as a metropolis, it provides a
directed focus on the challenges that would have to be inevitably addressed unique to
such form of an urban area.

.
References:

CIC-PMO. CIC-SDP 1997 Accomplishment Report (December 24, 1997).

City Planning and Development Staff, Cagayan de Oro City. 1997 Socio-Economic
Profile.

DMJM International, Inc. (for MEDCo) Mindanao 2000 Development Framework Plan
(August 1995)

NEDA-RDC X. 1999-2004 Regional Development Plan of the 21st Century (RDP 21).

____________. 1995-2025 Regional Physical Framework Plan (RPFP).

SCHEMA KONSULT, Inc.(for NEDA-RDC 10). Assessment of Domestic Water

Supply and Sanitation Sector of Northern Mindanao. (August 1996)

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