Little Kibungan, Philippines - The Philippines Tuesday created a commission to oversee the reconstruction of typhoon-devastated areas in the country and seek more foreign aid.

President Gloria Macapagal Arroyo said the government would hold a pledging session in November with the assistance of the United Nations to raise more foreign assistance.

"We want to raise more grants rather than more loans," she said, noting that the country already has too many debts.

She said the group would be headed by businessman Manuel Pangilinan, Finance Secretary Margarito Teves and senior Catholic Church leader Cardinal Jose Vidal.

The commission would study the costs of Typhoon Parma and storm Ketsana, seek fresh aid, prioritize projects and oversee the implementation of programmes.

It would also serve as a clearing house for international assistance, Arroyo said in an order creating the group.

More than 650 people were killed in floods and landslides caused by Parma and Ketsana in the past two weeks. Hundreds of thousands have lost their homes and were forced to stay in evacuation centres.

The deluge destroyed at least 15.5 billion pesos (337 million dollars) worth of infrastructure, crops and livestock, according to the National Disaster Coordinating Council.

Arroyo visited Tuesday the village of Little Kibungan in La Trinidad town in Benguet province, 210 kilometres north of Manila, where 174 people were buried in dozens of landslides.

She ordered the military to consider reassigning troops from the troubled southern region of Mindanao to boost recovery operations for an undetermined number of missing victims.

In a school that had been turned into an evacuation centre, Arroyo met with survivors and relatives who were still searching for their missing family members.

One of the survivors in the evacuation centre was Melissa Anablun, 35, whose husband was still missing. Anablun and her five children survived the tragedy.

"I'm afraid my husband's body will no longer be found," she said. "My son is there everyday to see if the rescuers can find his father. I'm still hoping."

The Philippines has already received more than 94 million dollars in assistance for more than 6 million people affected by Parma and Ketsana.

Last week, the UN issued a flash appeal for 74 million dollars in assistance to the Philippines.

John Holmes, UN undersecretary general for humanitarian affairs and emergency relief coordinator, said only 19 million dollars in commitments have so far been made.

Holmes, who was in the Philippines with a needs-assessment team, said the UN was considering revising the needed amount.

"We may need to increase it," he told reporters. "The crisis is by no means over. Indeed, the hard is just starting."

Ketsana struck on September 26, when it dumped more than one month's worth of rain in Manila and outlying areas triggering the worst floods in over 40 years.

One week later, Parma slammed into the northern Philippines and hovered for almost one week, triggering landslides and more flooding.

Several villages in Manila and the northern Philippines remained flooded, with authorities ferrying relief goods aboard boats. Many roads were also damaged by the floods and landslides.

In the mountain resort city of Baguio, a crunch in food and fuel supplies was expected to ease after three major highways leading to the area was opened Tuesday. (dpa)