MANILA, Philippines?A newly formed coalition of government workers? unions has opposed the plan to develop 340 hectares of government property in Quezon City into a business zone, saying it would lead to the displacement of thousands of workers and informal settlers.

Members of the Concerned Organizations Opposed to Transfer, Layoff and Privatization for the Central Business District (Contra-CBD) said the project was just a smokescreen to allow the Arroyo administration to sell the city?s public prime lots.

The project, according to the group, would lead to the demolition of state-run hospital buildings, including the Philippine Children?s Medical Center, Philippine Heart Center, National Kidney and Transplant Institute and Veterans Memorial Medical Center.

?Thousands of government employees will be laid off, around 30,000 families will lose their homes and precious services of these institutions for the Filipino people will be sacrificed if the transfer will take place,? said Santiago Dasmariñas, the group spokesperson.

Ferdinand Gaite, Contra-CBD convenor and chair of the Confederation for Unity, Recognition and Advancement of Government Employees (COURAGE), said the CBD master plan includes the transfer of several government hospitals and offices located in the Elliptical Circle area.

?Essentially, this project is aimed at slowly displacing government workers to allow the privatization of government properties (in Quezon City),? Gaite told the Philippine Daily Inquirer (parent company of INQUIRER.net).

However, Mayor Feliciano Belmonte Jr. denied Gaite?s allegations, saying the project did not mention any proposal to relocate government hospitals.

Belmonte said only illegal settlers on government lands would be affected once the project commences.

?The hospitals are not in danger of being demolished. In fact, it?s very good to have hospitals within the (proposed) business district. Can you imagine the Makati Business District without the Makati Medical Center?? he said over the phone.

Dasmariñas said the CBD project would cover 340-has of prime lot in the North and East Triangles. He added that the development plan would also affect the Golden Acres Home for the Aged and the Parks and Wildlife Bureau Nature Center.