Iloilo, classified as a first class city in the Philippines, suffered from flood damage almost every year due to the insufficient flow capacity of the Jaro River and poor drainage systems in the Iloilo River basin. One example is the flood in July 1994, which affected a total of 25,000 families and submerged the area of more than 80% of the city for around three days.

A master plan study and a feasibility study were conducted to mitigate flood damage, and to create a more sustainable urban community with safer and more pleasant living conditions. The project is expected to realize a more dynamic regional economy by providing a flood-free urban center as an important part of the strategy for national development. Also, restoration of the urban environment will provide more ecologically stable conditions.