A lawmaker proposes for the Development Bank of the Philippines (DBP) and the Al-Amanah Islamic Investment Bank to undertake the rebuilding and repair of the residential and commercial buildings of Marawi City at virtually no cost to their owners.
In House Bill 6700, or the Marawi City Rebuilding Act, Assistant Majority Leader Ron Salo of the Kabayan Party-list said his proposal seeks to address the unprecedented housing and business crises that arose from the destruction of homes and businesses in Marawi City.
“There is precedent for the spending of government funds to rebuild private buildings destroyed during armed conflict. This happened in Zamboanga City, where P2.566 billion in funds were released to the National Housing Authority (NHA) for shelter construction and other rehabilitation efforts for the internally displaced persons affected by the Zamboanga siege in September 2013,” he said.
In Zamboanga City, Salo added, P49.83 million was allocated for home materials assistance (HOMA) for 1,661 families who chose to build their homes on their own. Another P800 million was given to the Department of Public Works and Highways (DPWH) for the construction and repair of road networks, drainage systems and other infrastructure projects.
“The ‘Build Back Better Zamboanga’ program covered 7,248 homes and some of the housing designs the two agencies approved include two-story buildings with eight units per building to generate 1,160 units; 1,180 one-story duplex loftable units at P175,000 per unit, and 3,241 houses on stilts,” the lawmaker said, citing the NHA.
“What we propose through this bill is that the residential and commercial buildings to be built in Marawi will be at virtually zero cost to the residents and business owners in Marawi,” he said.
The bill also covers repairs of houses and commercial structures not damaged during the Battle of Marawi.
According to the proponent, not the government but the major private developers of residential subdivisions and commercial centers will undertake the construction.
The DBP is then mandated to formulate and implement a loan and grants program to finance the building of residences, commercial buildings, integrated communities and business centers in Marawi City.
The DBP, in cooperation with the district engineer, determine the amount to be loaned based on the proposed project of the borrower, provided the amount does not exceed P3 million for each borrower.
He proposes there shall be no collection of interest and that the principal must be returned.
Also, a management fee of 2 percent was to be collected by the DBP.
“The DBP has 10 years to complete the main phase of its Marawi City rebuilding mandates in this [proposal],” the bill said.
The Al-Amanah Islamic Investment Bank is tasked with formulating and implementing a Marawi City Housing Concessional Loans and Grants program that verified Marawi City residents can avail themselves of to finance the building and/or repair of their homes and small businesses.
It added the Islamic bank determines the amount to be loaned based on the proposed project of the borrower, provided the amount does not exceed P2 million for each borrower.