The Philippines is one of the most disaster-prone countries in the world due to its hazard-prone location and vulnerable population. If it is to avoid a repeat of the loss of lives and devastation in every disaster, it must plan and manage more effectively, the further growth of its towns and cities as well as the natural environment. This can be achieved through disaster risk reduction-oriented planning and management. This article presents the challenges and issues that need to be addressed in planning for high-risk, low-income areas in the Philippines, and presents as an example, a redevelopment planning project of the community of Barangay Rizal in Makati City. The discussion highlights the hazards, vulnerabilities, socio-economic and other critical considerations in the area, and presents possible actions to reduce the risk and improve the socio-economic condition of the project site. The uniqueness/value of this project is that it addresses the challenges of making an existing low-income built-up community disaster-resilient. The lessons from and the replication of this project are relevant not only to the Philippines towns/cities but also to similar lowincome, high-density communities in other developing countries.

The paper describes the historical development of metropolitan planning and administration in Metro Manila, and identifies five major problems: the sectoral isolation of planning; the inadequate involvement of local government; inadequacies in planning methods; weaknesses in the system of resource management; and institutional fragmentation. The development of the Capital Investment Folio process, its institutional framework and the main characteristics and results of applying the approach are described. The benefits and lessons which have emerged are then set out and their possible application elsewhere discussed. The main achievements of CIF are progress towards a rational system of urban planning; the generation of consensus within government about Manila's investment strategy; a more widespread appreciation of opportunity costs; and a new understanding of how to plan under conditions of uncertainty. It remains for CIF to be integrated into the national resource allocation process, and to be fully accepted by national government agencies. Local government still needs to be positively involved in the planning process.

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