The government will need an estimated P30 billion and at least 10 years to change the “topography and geography” of parts of Metro Manila and relocate more than half a million squatter families including those living in so-called danger areas throughout the metropolis.

But money is not a problem in the relocation of Metro Manila informal settlers but rather how the daunting program will be carried out without any glitch, Deputy Presidential Spokesman for Economic Affairs Gary Olivar said. He added that the government has various financing options to find permanent homes for more than half a million illegal settlers in the metropolis, particularly those living in riverbanks and waterways.

Possible fund sources are supplemental budget that may be passed by Congress, realignment of government spending, foreign aid, grants, and commercial borrowings if necessary, according to Olivar.

“The more important thing for our people to focus on is how we are going  going to spend P30 billion once it is raised. This is an opportunity for us to plan the development of Metro Manila in a more integrated and sensible way,” Olivar said in a news conference in the Palace.

“It’s more important to talk about where to put the money than how to raise it. Kung hindi naman maayos ang pinaglaanan natin within 10 to 15 years, we will probably be back to the same problem again,” he added.

The Metro Manila Inter-Agency Committee on Informal Settlers (MMIAC) reported that about 21 percent or 544,609 of the 2.6 million households in Metro Manila are living in informal settlements.

Out of 544,609 squatter families, 19 percent or around 75,000 are living in danger areas such as riverbanks, esteros, under the bridges, roadways or sidewalks and aqueducts.

President Arroyo earlier issued a directive ordering local government units (LGUs) to prevent typhoon-displaced people from returning to their homes along rivers, estero (creeks), waterways and other danger-prone areas.

The LGUs were told to coordinate with the national government or the Office of Vice President Noli De Castro in identifying relocation sites for the informal settlers or “squatters” who have built homes in danger-prone areas.

Majority of those killed in Metro Manila during the onslaught of tropical storm Ondoy were residents living near riversides and creeks. After Ondoy, a typhoon hit provinces in northern Luzon, killing dozens of people living in landslide- and flood-prone areas.

MMIAC was established in 2007 to help the government deal with Metro Manila's perennial squatting problem. It is composed of the Housing and Urban Development and Coordinating Council, Metro Manila Development Authority, National Housing Authority, Presidential Commission on Urban Poor, Commission on Human Rights, Office of the Undersecretary for Religious Urban, Caritas Manila, and various urban poor offices in Metro Manila.

The MMIAC said these squatter families as well as those affected by the implementation of government infrastructure projects would be prioritized in the implementation of its 10-year housing program.

Under the program, the government needs to produce social housing 305 units per day or an additional 30,859 units per year over the current production of 30,141 units.

The total funding requirement for the 10-year program for both socialized and commercial housing needs in Metro Manila is estimated at P13.75 billion per year. For socialized or public housing, the MMIAC said the total requirement is estimated at 22,689 units with a funding requirement of P3.225 billion per year.

The government needs to produce additional 14,922 units every year in addition to the current production of 7,767 units.