2013 SONA Technical Report PDF
2013 SONA Technical Report PDF
2013 SONA Technical Report PDF
Prepared by:
The Office of the President of the Philippines
TABLE OF CONTENTS
I. CONSOLIDATING THE GAINS OF GOOD GOVERNANCE
A. Institutionalized and Sustained Good Governance Reforms
1.
2.
3.
4.
5.
II. TABLES
1. National Crime Situation ................................................................................. 14
2. Witness Protection Program ............................................................................. 18
3. Growth of Construction Spending and the Construction Industry ..................... 28
4. Tax Revenues as a Percentage of GDP (Tax Effort) ........................................... 29
5. National Government Debt-to-GDP Ratio ....................................................... 30
6. Interest Payment Ratios .................................................................................... 30
7. Selected Banking Indicators ............................................................................. 30
8. Top Merchandise Exports................................................................................. 32
9. Share of Electronics to Total Exports 2010-May 2013....................................... 32
10. PH Coco Water and Coir Exports (20092012) .............................................. 33
11. IT-BPM Revenues and Employment ............................................................... 35
12. Pantawid Pamilyang Pilipino Program Annual Targets and Accomplishments . 39
13. 2013 Compliance Rates for Sets 1 to 6 ........................................................... 39
14. Comparison between Pantawid and Non-Pantawid Households .................... 40
15. Improvement on Nutritional Status of Daycare Children ................................ 43
16. PhilHealth Annual Enrollment ....................................................................... 46
17. Expanded Z Benefit Package .......................................................................... 48
18. Summary of Availment of Case Type Z Benefit Package ................................. 49
19. HFEP Annual Accomplishments..................................................................... 51
20. List of Typhoons (20102012)........................................................................ 53
21. Summary of Calamity Fund and Quick Response Fund Releases .................... 54
22. Completed Housing Units in Cagayan de Oro and Iligan City ........................ 55
23. Addressing the 2010 Backlog in Basic Education Inputs ................................. 57
24. Basic Education Inputs Targets (20142016) .................................................. 58
25. Selected Tourism Indicators ........................................................................... 64
26. Irrigation Services Development Program ...................................................... 66
The General Appropriations Acts (GAA) for FYs 2011, 2012, and
2013 were enacted before the end of the year, which gave
government agencies time to properly implement projects within the
timeline set, avoiding costly delays, particularly in the case of
infrastructure projects.
30
20
10
0
16.251
7.497 5.324
9.159
24.859
13.803
12.013
6.788
5.061 5.658
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: BTr
Two GOCCs, which used to post losses, are now able to post
earnings and contribute to government coffers:
From P34 million losses in 2010, the Metropolitan Waterworks
and Sewerage System (MWSS) reported a net income of P333
million in 2011 and P1.98 billion in 2012. From P150 million in
2012, the MWSS has remitted around P345 million in 2013.2
The Local Water Utilities Administration (LWUA) rebounded from
P950 million in losses in 2011 to a net income of P870 million in
2012. It remitted P365.06 million to the national government in
2013.3
From 2010 to 2013, PRAs total dividend amounts to P2.443 billion, which is higher than the P676.82 million
total dividends remitted from 1996 to 2009.
The amount represents the remittances turned over during the GOCC Dividends Day on 03 June 2013
composed of dividends from 2012 and other statutory remittances.
The amount represents the remittances turned over during the GOCC Dividends Day on 03 June 2013
composed of dividends from 2012 and other statutory remittances.
The Dividends Law of 1994 (RA 7656, Sec. 3) requires GOCCs to remit as dividends at least 50 percent of
their annual net earnings as cash, stock or property dividends to the national government. Exempted from
this are GOCCs mandated by law to administer real or personal properties or funds held in trust for the use
and benefit of its members.
Aside from the plunder charges filed against a former president and
former officials of the Philippine Charity Sweepstakes Office (PCSO)
for the alleged misuse of the P366-million PCSO Intelligence Fund,
cases were also filed in the Sandiganbayan against the following:
A former TESDA official charged with six counts of violation of
the Anti-Graft and Corrupt Practices Act (RA 3019) in relation to
irregularities in the utilization of funds for various projects5;
Former high-ranking officials of the Philippine Amusement and
Gaming Corporation (PAGCOR) charged for misappropriation of
P186 million allegedly contributed to a party-list and of P26.7
million for the production of a movie, and for the use of rice
donations to typhoon victims in electioneering activities; and
A number of PNP officials charged for irregularities in fund
disbursements, such as the purchase of 75 defective police rubber
boats in 2008 (P131.6 million); disbursement of the PNP
These include: Ladderized Education Program of the TESDA (LEPTES) and the Nordic Development FundTESDA; and the disbursement to the Tagipusuon Cooperative and Tagipusuon Foundation, Inc. for
implementation of the Expanded Education for All Program.
Cases Filed
200
140
150
162
83
100
116
56
50
23
18
5
2010 (Jul-Dec)
RATE
55
68
26
2011
2012
RATS
2013 (Jan-July)
RIPS
Source: DOF
On 06 June 2012, criminal cases were filed against the respondents before the Sandiganbayan, pending
trial as of 27 May 2013.
2. Promoted Transparency
Recognizing the value of information in people empowerment, as well as
the deterrent effect of transparency on corruption, the government instituted
reforms that allowed more transparency in government operations and in
the use of public funds.
a. Transparency Seal
In compliance with the Transparency Seal requirement of the 2012 and
2013 GAAs,7 the websites of all 22 line departments, as well as all 358
executive offices, now feature information about their respective
budgets, bids, public offerings, and project implementation status for
public access and scrutiny.
b. Online Access to Government Information
Additional online facilities were also established to complement the
governments transparency thrust.
The government also adopted the Full Disclosure Policy (FDP) for
local government units (LGUs), requiring them to post, in
conspicuous places, print media, and websites, information about
their local finances, bids, and public offerings, for public access and
scrutiny.
The 2011 GAA requirement was mandatory disclosure of budget information, and was monitored by the
GGAC cluster. This was changed to the maintenance of a Transparency Seal on their official websites in
2012 and 2013 GAAs (RA 10155, Section 93; National Budget Circular No. 542 s. 2012 - Reiterating
Compliance with Section 93, the Transparency Seal Provision, of the General Appropriations Act of 2012" )
The 35 executive offices mentioned do not include NSC since it has no website.
Aside from complying with the FDP, LGUs that also exercise sound
fiscal management, and planning and performance monitoring are
conferred the Seal of Good Housekeeping (SGH). For 2010, 30 LGUs
were conferred the SGH; for 2011 and 2012, the recipients were
1,327 and 1,365, respectively.
9
10
11
12
13
14
15
16
A total of P502.28 million out of the DPWH savings was utilized for disaster-related rehabilitation projects
due to Typhoon Sendong. These include clearing/improvement of roads, construction of access roads and
bridges, or construction of drainage system for relocation sites such as the Xavier Ecoville and Indahag
Relocation Site in Cagayan de Oro City, and Kapuso Village Housing Project in Iligan City, Lanao del Sur.
17
18
19
20
21
These projects include those that were started during the previous administration.
The appropriation for the Project is P694.2 million, while the total amount as bid is P430 million. It was
completed in September 2012, ahead of its December 2012 target.
Total project cost is P593.61 million, P113 million lower than the approved budget of P706.54 million. It was
completed in November 2012, three months ahead of its February 2013 target.
Construction was delayed and took about 14 years to complete due to unpredictable weather conditions; a
vehicular accident in 2004 involving the workers; and typhoons and flooding, which washed away concrete
girders and craneway, among others.
This refers to annual average daily traffic along the Cervantes-Bontoc Road as of 10 February 2013.
22
23
24
25
26
27
Average daily traffic along the Daang Maharlika Highway was reduced from 29,113 motorists per day to
17,468 motorists per day following the construction of the bypass road.
Visual Flight Rules airports may handle commercial operations even without navigation aid installed. Airport
traffic guided by the ground crew and flight service station personnel.
A system of radio navigation intended to assist aircraft in landing by providing lateral and vertical guidance,
which may include indications of distance from the optimum point of landing.
The Project also involves the concreting of the existing two-lane, 1.432 km gravel road; construction of four
bridges (82.6 lm); construction of the 2-lane Kaybiang Tunnel (303 lm); construction of a new two-lane
asphalt road (4.310 km); and provision of drainages and slope protection works.
While the road is already passable, the DPWH is still undertaking slope protection works in a portion of the
road in Barangay Sapang, Ternate and targets to complete these in September 2013.
Around 684 motorists/vehicles per day (projections for 2013) will benefit from the road project. However, the
volume of traffic is expected to increase as more motorists will be encouraged to use the road due to the
significant time savings from the shorter travel time.
To address the high cost of doing business at the local level, 926 out
of the 1,634 cities and municipalities nationwide have streamlined
their business permits and licensing systems, resulting in reduced
processing time and less opportunities for corruption.
The positive results of these measures are reflected in the February
2012 National Competitiveness Council Survey among businessmen,
showing that 93 percent of the respondents experienced a
streamlined business process without using grease money to speed
up their business applications.
29
The Seal is conferred upon an LGU that demonstrates able and sustained leadership in ensuring strong
foundation for local economic transformation. For an LGU to be conferred with the Seal, it has to pass the
Business Competitiveness Ranking Audit which is used as the assessment tool to determine an LGUs
ability to optimize its resource endowment and to build on a policy of local government-private sector
partnership towards economic transformation.
Central Visayas; Metro Manila and CALABARZON; Central Luzon; Palawan; Western Visayas; Davao
Gulf and Coast; Northern Mindanao; Bicol; and Laoag-Vigan
a. Bottom-Up Budgeting
To pursue the Administrations poverty alleviation agenda, the
government mandated targeted LGUs in the poorest municipalities and
cities to craft local poverty reduction action plans (LPRAPs) and identify
the basic needs and services that they need for inclusion in the budgets
of participating national agencies. As a result, the basic needs of 595
cities and municipalities for potable water, electrification, farm-to-market
roads (FMRs), and agricultural support services, among others, were
integrated in the budgets of nine NGAs30 and two GOCCs31 in the 2013
GAA. For 2014, LPRAPs of 1,226 cities and municipalities were
integrated in the budgets of 12 NGAs32 and a GOCC33.
b. Participation of Civil Society Organizations (CSOs)
Budget Partnership Agreements (BPAs) between national agencies34 and
CSOs strengthened institutions through stakeholder consultation. For the
2012 and 2013 budgets, five line departments35 and a GOCC,36 and ten
line departments 37 and four GOCCs, 38 respectively, prepared their
budgets39 with the aid of CSOs.40
Examples include DSWDs Bantay, 41 Gabay 42 , Kaagapay, 43 Tulay 44
programs, where CSOs serve as the "third eye" of the DSWD, helping in
the delivery of basic social services to the poor, implementing
development government projects, and instituting transparency and
accountability mechanisms to fight corruption.
As of 01 July 2013, 421 CSOs have partnered with DSWD through a
Memorandum of Agreement.
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
The following agencies were involved in the BUB as they are the most engaged in the delivery of services at
the municipal level: DA, DAR, DENR, DepEd, DILG, DOE, DOH, DOLE, and DSWD.
PhilHealth and NEA
DA, DAR, DENR, DepEd, DILG, DOE, DOH, DOLE, DSWD, DOT, DTI, and TESDA
NEA
Said agencies were selected because they were provided with big appropriations in the national budget for
economic and social services under the Key Result Areas of the Aquino Administration.
DA, DAR, DSWD, DPWH, and DepEd
NHA
DAR, DA, DepEd, DENR, DILG, DOLE, DPWH, DSWD, DOT, and DOTC
NFA, NHMFC/SHFC, NHA, and NIA.
DBM National Budget Memorandum No. 536, Guidelines on Partnership with Civil Society Organizations
and other Stakeholders in the Preparation of Agency Budget Proposals, 31 January 2012.
Agencies for the implementation of participatory budgeting were selected on a pilot basis, per NBC 536, s.
2012 and National Budget Memorandum 109, s. 2011.
Mechanism to fight corruption
Mechanism for extending technical assistance
Anti-poverty programs and projects
Facilitation action, feedback, and monitoring
c. Pera ng Bayan
Through the Pera ng Bayan website (www.perangbayan.com), citizens
have become the governments partners in monitoring tax evaders,
smugglers, and erring BIR and BOC employees. Since the website was
launched in 2010, the Pera ng Bayan has received 2,587 citizen reports,
1,596 of which have been forwarded to the concerned agencies, and 52
have been resolved.45
The government and the Moro Islamic Liberation Front (MILF) signed
the historic FAB on 15 October 2012. The FAB, with its four annexes,
outlines the general features of the political settlement between the
government and the MILF.
The Panels signed the Annex on Transitional Arrangements and
Modalities 46 on 27 February 2013 and the Annex on Revenue
Generation and Wealth-Sharing on 13 July 2013.
Two other annexes are still being finalized: a) Power-Sharing
between the Central Government and the Bangsamoro
Government; and the b) Normalization Process, which includes
the demobilization, disarmament, and reintegration (DDR)
process.
45
46
Resolved refers to reports that do not involve legal matters and that have been addressed.
Lays down the modalities by which prospective Bangsamoro political entity will be established.
47
48
2010
319,441
18.64
2011
241,988
28.87
2012
217,812
36.67
GPH: Akmad A. Sakkam, Johaira C. Wahab, Talib A. Benito, Asani S. Tammang, Pedrito A. Eisma, Froilyn
T. Mendoza, and Fatmawati T. Salapuddin; MILF: Robert M. Alonto, Abdulla U. Camlian, Ibrahim D. Ali,
Raissa H. Jajurie, Melanio U. Ulama, Hussein P. Munoz, Said M. Shiek, and Mohagher Iqbal, who will serve
as Chairperson.
Figures include all crimes recorded by the police precincts and exclude crimes reported to National Support
Units (NSUs) to avoid duplication, since crimes are likely reported to police precincts first before being
elevated to NSUs. The exclusion of NSUs in the computation of the Total Crime Volume and Crime Solution
Efficiency (CSE) Rate started only around end-2012. However, 2010 and 2011 figures have also been
adjusted for comparison purposes.
49
50
51
CSE Rate is the percentage of solved cases out of the total number of crime incidents handled by law
enforcement agencies for a given period of time. A case shall be considered solved when the following
elements concur: (1) the offender has been identified; (2) there is sufficient evidence to charge him; (3) the
offender has been taken into custody; and (4) the offender has been charged before the prosecutors office
or court of appropriate jurisdiction. A case shall also be considered solved when some elements beyond
police control prevent the arrest of the offender, such as: (a) when the victim refuses to prosecute after the
offender is identified; or (b) the offender dies or absconds.
The 14,975 represents the number of pistols purchased through repeat order from out of the more than
P200 million savings, after the public bidding of 59,904 pistols.
Gas Piston is a recent type of Cal. 5.56.
Recognizing that crimes and terrorist acts are perpetrated not only by
local lawless elements but also by transnational entities, the
government enacted the following: a) the Ex Parte Application of
Court Order (RA 10167), which granted authority for the Anti-Money
Laundering Council to undertake ex parte 53 inquiry into suspicious
financial transactions after securing court approval without the need
to inform the suspects; b) the amendment to the Anti-Money
Laundering Act, expanding the list of covered institutions and
transactions (RA 10365); and c) the Terrorist Financing Prevention
and Suppression Act of 2010 (RA 10168) defining the crime of
terrorism financing.
52
53
The attrition in police personnel strength (1,105) from year-end 2012 to date can be attributed to retirements
and separation from service of personnel for various reasons (e.g., dismissal, resignation, death).
With respect to or in the interests of one side only or of an interested outside party.
54
55
56
57
As of 19 June 2013, the PNP is still monitoring 45 PAGs with estimated strength of around 700 members
and 2,380 firearms.
As 17 July 2013, out of the 77 reported incidents, only 45 have been validated as election-related. The PNP
is still validating the others.
The Board of Election Inspectors did not proceed to the polling center due to shots discharged from firearms
of unidentified amed men. As such, no election took place.
Kapai, Lumba-Bayabao, Tugaya, Marogong, Bayang, and Butig.
The PNP has also been implementing since 2012 OPLAN Katok,
which involves the conduct of house visits to identified holders of
expired firearm licenses. As of 30 June 2013, the PNP has conducted
house visits involving 491,929 unrenewed firearm licenses (92.3
percent of the targeted 532,981 unrenewed firearm licenses),
facilitated the processing for renewal of 99,399 firearm licenses, and
confiscated 6,657 firearms.
The increasing budget for the Witness Protection Program in the past
years has allowed it to admit more witnesses and increase their
benefits. This has helped improve the conviction rate, validating the
effectiveness of the Program, considering that the non-appearance of
witnesses often results in the dismissal of most criminal cases filed in
court.
Table 2: Witness Protection Program
Particulars
2010
Budget (in P million)
139.1
61
Witnesses covered
465
Conviction rate (in %)
78.89
Source: DOJ
58
59
60
61
62
2011
151.1
514
94.74
2012
174.7
556
96
2013
184.6
62
580
-
Pualas, Bayang, Masiu, Kapai, Lumba-bayabao, Ganassi, Marantao, Butig, Tugaya, Sultan Dumalundong,
Lumbaca-Unayan, Ganassi and Marogong.
Barira, Buldon, Kabuntalan, and Pagalungan.
Pursuant to RA 9406, reorganizing and strengthening the PAO, the ideal number of public attorneys
nationwide is one for every organized court sala.
At the end of the previous administration, 447 witnesses were covered by the Witness Protection Program.
As of 19 July 2013
63
The AFP also ensures that members of the security forces uphold human
rights and International Humanitarian Law.
The AFP released the AFP Soldiers Handbook on Human Rights
and International Humanitarian Law, which integrates human
rights principles in the guidelines of AFPs conduct of operations.
The AFP also designated Human Rights Officers 64 down to the
battalion level to enhance the AFP's campaign on the observance of
human rights.
The commitment of the AFP to human rights has not only resulted in the
significant decrease in human rights cases filed against the military, but
also to the speedy action of the military leadership against human rights
violators within its ranks.
64
The second officer in command is automatically designated as the Human Rights Officer.
51
50
37
40
25
30
22
20
13
10
7
0
0
2010
2011
Mission Related
2012
Personal
Of the total 164 cases, 47 have been resolved and recommended for delisting in the
CHR list, while the remaining 117 are either for resolution or for further investigation.
Source: DND
80
100
29
50
30
0
Convictions (Cases)
2003-June 2010
Persons Convicted
July 2010-15 July 2013
Source: DOJ
65
66
Members of the media can now publish or broadcast the names and other circumstances of offenders to
give a fair warning to the public not to do business with them and avoid being victimized.
The Anti-Trafficking Persons Act of 2003 (RA 9208), which was signed on 26 May 2003, became effective in
2004.
Aside from the legal track, the Philippines actively engaged the
Association of Southeast Asian Nations (ASEAN) in underscoring the
importance of the full and effective implementation of the
Declaration on the Conduct of Parties in the South China Sea (DOC)
in its entirety, and in pushing for the early conclusion of a Code of
Conduct in the South China Sea (COC) to ensure the peaceful
resolution of disputes, guarantee maritime security, and maintain
regional stability.
69
70
Sec. 2, RA 10368
DOJ originally filed murder charges against 197 persons but in 2010, the Court excluded or dropped from
the information one police officer for lack of probable cause.
92 of whom are already arraigned, and 82 of whom are undergoing trial (including the main suspects
accused Andal, Sr. and Jr.; and Zaldy Ampatuan).
GPH sent a Note Verbale to H.E. Ma Keqing, Chinese Ambassador to the PH, containing the Notification
and Statement of Claim on the matter.
72
73
74
Prior to the enactment of RA 10349, the government has released P27.62 billion, compared to the P26.27
billion released during the previous administration (2001-June 2010).
The first project under the AFPM/CUP was only completed in 2003 due to the late release of fund for the
program.
The second WHEC, BRP Ramon Alcaraz, is expected to arrive on 04 August 2013.
Corruption Perceptions Index 2012, http://www.transparency.org/cpi2012/results.
that corruption in the country has decreased over the past two years.
This is a significant improvement from the 2010 GCB, which reported
that only 6 percent of Filipino respondents believed that the level of
corruption in the country had decreased since 2007, with 69 percent of
the respondents believing that the level of corruption in the country had
increased.75
b. The Administration received record high public net satisfaction rating of
+57 in December 2012 from a record low rating of -4576 just before the
end of the previous administration in the SWS survey conducted for the
period. It also recorded consistent higher net satisfaction ratings vis--vis
its predecessors.77
c. The countrys ranking in the World Economic Forum (WEF) Global
Competitiveness Index improved from 85th in 2010 to 65th (out of 144) in
2012.78 Notable factors contributing to the ascension of the Philippines
in ranking are:
77
78
79
80
81
82
The Travel & Tourism Competitiveness Report published by WEF assesses economies worldwide based on
their policies to develop the travel and tourism sector.
83
Such as agricultural lands, forest lands, coastal zones, ancestral domains, mineral lands, tourism areas,
energy resources, settlements development, industrial development areas and infrastructure development
84
85
Total employment has risen from 36.04 million in 2010 to 37.60 million
in 2012. The share of wage and salary workers increased from about 54
percent in April 2010 84 to about 57 percent in the April 2013 survey.85
This suggests that the economy may be undergoing a process of
transformation where seasonal, intermittent, and less productive jobs are
gradually giving way to more stable, continuous, productive, and
remunerative employment.
Total Employment in April 2010: 35.413 million and Wage and Salary Workers in April 2010: 19.283 million.
Total Employment in April 2013: 37.819 million and Wage and Salary Workers in April 2013: 21.731 million.
The economy is also getting a boost from the double-digit surge in public
and private construction spending in the last four quarters. Construction
spending grew by 10.2 percent in the second quarter of 2012, 19.2
percent in the third quarter of 2012, 30.4 percent in the last quarter of
2012, and 33.7 percent in the first quarter of 2013.
Table 3: Growth of Construction Spending and the Construction Industry
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q12013
Construction Spending
Construction Industry
Source: NSCB
-1.2
1.5
10.2
11.6
19.2
17.8
30.4
29.9
33.7
32.5
8.3
8.0
6.0
6.5
5.5
4.8
4.2
2.9
4.0
3.8
4.6
3.2
3.2
6.8
7.8
2.0
6.7
4.8
5.2
6.6
4.2
1.1
7.6
3.6
2004
2005
2006
2007
2008
2009
2010
2011
0.0
GDP Growth
2012 2013*
Inflation
st
86
Based on actual estimates of 3.024 million in January 2012 and 3.162 million in January 2013.
12.1
9.1
2.9
12.4
9.5
2.7
2012
12.9
10.0
2.7
For the first five months of 2013, the deficit reached P42.84 billion,
lower than the P162.11 billion deficit during the same period in 2010.
The amendments to excise taxes on sin products generated an additional
P7.7 billion in revenues during the first five months of 2013.
Proactive liability management has resulted in declining debt levels as a
percentage of GDP, longer maturities, and lower interest payments.
The debt-to-GDP ratio has fallen to 48.9 percent in the first quarter of
2013 from 53.6 percent at the start of this Administration, indicating
improved capacity to bear debt. The government is targeting a debtto-GDP ratio of 40.0 percent by 2016.
The average maturity for debt (domestic and external) was extended
from 7.9 years at the start of this Administration to 10.9 years at the
end of 2012.
The share of interest payments to total disbursements also declined
from 19.3 percent in 2010 to 17.6 percent in 2012, while the share
of interest payments to total revenues declined from 24.4 percent in
2010 to 20.4 percent in 2012. Since 2010, almost P60 billion per
year that would have gone to interest payments has been freed up for
other government priorities.
Table 5: National Government Debt-to-GDP Ratio
EndS1
EndEndEndQ1
2009
2010
2010
2011
2012
2013
a
b
NG Debt-to-GDP Ratio
54.8
53.6
52.4
51.0
51.5
48.9
a
Includes P55.6 billion on-lending to PSALM, net of which results to 50.9%
b
Includes P55.6 billion on-lending to PSALM, net of which results to 48.4%
Source: DOF
Table 6: Interest Payment Ratios
2010
Interest Payments
As a percentage of GDP
As a percentage of Expenditures
As a percentage of Revenue
Source: DOF
3.3
19.3
24.4
88
89
2.9
17.9
20.5
2012
3.0
17.6
20.4
The banking systems ample loanable funds and the low interest rate
environment help facilitate the financing of companies expansion plans,
raising the countrys productive capacity.
Table 7: Selected Banking Indicators (in P billion)
2011
Total Assets
7,335.6
Deposit Liabilities
5,376.5
89
Total Loan Portfolio
3,761.9
Source: BSP
87
2011
2012
8,049.7
5,753.6
4,228.6
Growth (%)
9.7
7.0
12.4
It is enough to cover 8.3 months worth of imports of goods and payments of services and income, and 8.9
times the countrys short-term external debt based on original maturity.
The traditional rules of thumb suggested by institutions such as IMF to guide reserve adequacy is that
countries should hold reserves covering 100 percent of short-term debt or the equivalent of 3 months worth
of imports.
Gross total loan portfolio
90
The PAGCOR concessionaires offered to provide subsidy in the form of a loan with no interest rate, payable
in ten years, and exclusive of a 10-year grace period.
2011
2012
23,795.42
2,021.26
1,847.96
784.97
1,667.63
22,852.53
3,348.70
2,348.49
1,962.17
1,708.28
Growth
(%)
(4.0)
65.7
27.1
150.0
2.4
1,895.68
1,563.75
(17.5)
Table 9: Share of Electronics to Total Exports 2010-May 2013 (in US$ billion)
Percentage
Total Exports
Electronics
Share
2010
51.50
31.08
60.3
2011
48.30
23.80
49.3
2012
52.10
22.85
43.9
January to May 2013
21.09
8.07
38.3
Sources: DTI and NSO
91
Value
(in US$
million)
0.37
1.84
15.10
18.71
% Increase
397.3
720.7
23.9
Coco Coir
Value
Year
% Increase
(in US$
million)
2009
1.51
2010
2.06
36.4
2011
2.59
25.9
2012
3.38
30.4
*Figures may not add up due to rounding.
Source: DTI
Volume
(in million
liters)
0.48
1.81
16.75
15.88
Volume
(in metric
tons)
8,242
9,100
7,776
8,289
% Increase
274.1
825.4
(5.2)
% Increase
10.4
(14.7)
6.8
92
93
FDI covers actual investments where ownership by the foreign enterprise is at least 10 percent, and follows
the internationally-recognized Balance of Payments (BOP) methodology prescribed by the IMF.
Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority
(PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BOIAutonomous Region in Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA)
300.00
250.00
200.00
214.08
182.68
165.88
155.51
150.00
100.00
50.00
196.06
121.83
95.81
57.98 46.09
33.97
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0.00
Source: NSCB
34.6%
15.1%
36.7%
25
22.97
20
15
11.64
10
8.15
7.76
5
0
Ramos Estrada Arroyo Aquino
Source: PEZA
2012
Targets
2013
2016
13.2
16
25.0
777
926
1,300
94
95
96
97
98
Information Technology and Business Process Association of the Philippines (IBPAP), formerly BPAP, now
uses the term Information Technology and Business Process Management (IT-BPM) in describing the
industry to veer away from the negative perception of outsourcing which connotes such as the taking away
of jobs from source countries like the US and UK.
Tholons is a leading full-service Strategic Advisory firm for Global Outsourcing and Investments. It releases
annual rankings of the top 100 outsourcing destinations around the world.
Per IBPAP, the Game Developers Association of the Philippines (GDAP) and the Health Information
Management Outsourcing Association of the Philippines (HIMOAP) made upward revisions of their 2011
employment numbers. This increased the IT-BPMs employment from previously reported 638,000 to
639,728.
Gross tonnage refers to the measure of the overall size of a ship. (Source: International Convention on
Tonnage Measurement of Ships, 1969)
Based on the actual figures of 1,136,292 in 2011 and 2,050,332 for 2012
The countrys impressive economic performance over the past three years gained
for it the labels Asias Rising Star, 99 Asias Rising Tiger, 100 and brightest
spark.101 The dividends from this performance continue to be channeled to social
protection and development programs towards inclusive growth.
99
100
101
Glenn Levine, Philippines Outlook: Asias Rising Star, Moodys Analytics, 24 April 2013.
WB Philippine Country Director Motoo Konishi, 2013 Philippine Development Forum, 5 February 2013.
Institute of Chartered Accountants in England and Wales, Economic Insight: South East Asia,
http://www.icaew.com/~/media/Files/About-ICAEW/What-we-do/economic-insight/7487-3-icaew-sea-q22013-web.pdf, 29 May 2013.
2000.00
1,472.98
2,005.90
1,580.02
1500.00
1000.00
500.00
415.84
544.86
592.16
699.44
0.00
2010
2011
2012
2013
National Budget
Source: DBM
Aside from enacting into law the Responsible Parenthood and Reproductive Health
and the Sin Tax Reform Bills, landmark legislation that had been languishing in
Congress for years, the Administration also sought to institutionalize other measures
that will help the poor, in partnership with the Legislature. Some of these are as
follows: (a) mandatory basic immunization for all infants and children102 through
RA 10152; (b) the Early Years Act (RA 10410), institutionalizing a national system
for Early Childhood Care and Development 103 to provide health, nutrition, early
102
103
Includes vaccine-preventable diseases such as tuberculosis; diphtheria, tetanus and pertussis; poliomyelitis;
measles; mumps; rubella or german measles, hepatitis B, influenza type B(HIB)n, and other types as may
be determined by the Secretary of Health.
A comprehensive and integrative system that involves multi-sectoral and interagency collaboration among
government agencies, service providers, families and communities, private sectors, non-government
organizations, professional associations, and academic institutions.
education, and social services development programs for young children; 104 and (c)
extension of the Lifeline Rate for at least another 10 years, amending the
Electrification Power Industry Reform Act (RA 10150), for end-users who cannot
afford to pay electricity consumption at full cost.
104
105
106
107
Young children aged zero to four years; children aged zero to eight with special needs and disabilities; and
children who are blind, deaf or deaf-blind.
The RSBSA is a nationwide database of baseline information on farmers, farm laborers, and fisherfolk from
identified provinces, as well as geographical coordinates of agricultural and fishery worker households.
These data will be used as basis for developing programs and policies for the agriculture and fishery
sectors. The RSBSA is an interagency effort among DBM, NSO, DA, DAR, DILG, and NAPC.
Farmers and fisherfolk from 75 provinces have been registered and the data for 20 provinces has been
processed and is available for the use of government programs.
The 760,357 registered households as mentioned in the Presidents 2012 SONA was estimated based on
the reported 2010 target (1,015,000) less the reported registered households from July to December 2010
(254,643). The 786,523, on the other hand, is the actual total number of households registered as of 27 July
2010.
108
109
The WB and the Australian Agency for International Development (AusAID) funded the impact evaluation on
Pantawid Pamilya entitled, Philippines Conditional Cash Transfer Program Impact Evaluation 2012. WB
and the DSWD led the study, in coordination with AusAID and the Asian Development Bank (ADB), while
the Social Weather Station (SWS) conducted the surveys.
More than 280,000 Set 1 households are supposed to be graduating in December 2013 but with the
proposed expansion of the Program to support the children beneficiaries until high school, they may not be
graduating by this year. Their children will continue to receive education grants until they finish high school.
Further, under the Expanded CCT (ECCT), the DSWD will cover high
school-aged children 15 to 18 years old 111 to help them complete
secondary education thereby enabling them to help augment their
familys income.
The implementation of the ECCT is supported by several studies (e.g.,
WB and Philippine Institute for Development Studies) highlighting
110
111
Launched in 2012, MCCT is a component of Pantawid Pamilya, which caters to HHs who are not covered by
the regular CCT due to lack of permanent residence. Specifically, it focuses on street families, itinerant
indigenous families, displaced families due to man-made and natural disasters, families with differentlyabled children, child laborers, children in conflict with the law, and other families with members with terminal
disease, exploited, abandoned, victims of trafficking, etc.
Regular Pantawid Pamilya covers households with children aged 0-14 years old.
113
114
115
116
Celia Reyes, Philippine Institute for Development Studies, Policy Note No. 2013-02: Pantawid Pamilyang
Pilipino: Why deepening matters in achieving its human capital objectives, February 2013.
For households covered under Sets 2 to 7, additional P200 will be provided for high school children aged 12
to 14 years old because P300 will already be covered in the regular budget.
There is no study yet on the effect of the Program on childrens school performance and attendance.
DSWD, Inputs to the SONA 2013, emailed to PMS on 09 May 2013; and DSWD in 2012: Moving Ahead
With
Its
Convergence
Strategy,
DSWD
Official
Website,
http://www.dswd.gov.ph/?s=sustainable+feeding+program&x=0&y=0.
Unliquidated funds from the LGUs (from other DSWD-funded programs), and delays in the required bidding
and procurement process prevented the simultaneous implementation of the Program.
117
118
119
Indigent SCs who may not have pension or source of income but has support from family are not qualified to
receive pension. Beneficiaries are identified through the NHTS-PR. Indigent SCs are described to be frail,
sickly, and bedridden. It also includes disabled SCs.
Beneficiaries are those identified under the NHTS-PR.
The 723 pensioners who did not receive the minimum pension did not have or were late in submitting their
account number, or had suspended accounts for various reasons, among others. Once they met the
requirements, their pension will be processed.
The Small Business Corporation 121 and the People's Credit and
Finance Corporation 122 released P49.34 billion to 29,716 SME
borrowers; and P32.21 billion to more than 1.56 million
microenterprises from July 2011 to December 2012.
The DTI initiated the Shared Services Facility (SSF) Project in 2012,
which sets up common services facilities/production centers for some
processes to give MSMEs access to better technology and more
sophisticated equipment. Of the total P700 million fund for 862 SSF
projects for 2013, P458.94 million have been approved for 710 SSF
projects.
120
121
122
123
124
As mandated by RA 9501 (Magna Carta for MSMEs), all lending institutions are required to set aside a
portion, at least 8 percent for micro and small enterprises (MSEs) and at least 2 percent for medium
enterprises, of their total loan portfolio.
The Small Business Corporation is a GOCC with the authority to offer a wide range of financial services for
small and medium enterprises engaged in manufacturing, processing, agribusiness, and services.
The Peoples Credit and Finance Corporation is a GOCC tasked to mobilize resources for microfinance
services for the marginalized sector.
Enrollment refers to those enlisted in PhilHealth.
5.3 million poor families were enrolled in PhilHealth through national government subsidy, and an additional
4.55 million were enrolled in partnership with LGUs.
75.82
2013
97.70
Source: PhilHealth
79.13
125
62
82
86 (as of September 2012)
84 (as of December 2012)
79 (as of December 2012-Actual
Count)
81 (as of April 2013-Actual Count)
Notes:
[i] Decrease in enrollment rate from 86% (in September 2012) to 84% (in December
2012) was due to a change in multiplier, from 5 to a range of 2 (NCR)-5.5 (Bicol and
ARMM) with statistical discrepancy of +/-3 of total figures, depending on regional
family size plus actual number of members and dependents in the PHIC database.
The use of multiplier was to estimate the number of the Sponsored Program-LGU
dependents not in the database.
[ii] Change from 84% to 79% is due to PhilHealths decision in March 2013 to use
actual head count instead of multipliers.
million
P9,400
P7,930
P30.50
The increase in the average amount per claim between 2010 and
2012 can be attributed to the introduction of the 23 Case Rates
Package, which accounted for 55 percent or 2.65 million of the total
4.80 million claims in 2012, as well as the introduction of the Type Z
benefits, for which PhilHealth paid a total of P7.95 million or an
average of P116,911 per claim in 2012.
Meanwhile, the increase in the number of claims between 2010 and
2012 can be attributed to increased PhilHealth membership,
particularly in the NHTS-PR, and increased awareness brought about
by PhilHealths intensified information campaign.
125
126
127
128
The highlight of the new law is on the coverage of Sponsored Program (SP) members. Previously, the
coverage of SP members was uncertain and unsustainable because of the process of identifying them and
the counter-parting of premium contributions between the national and local governments were dependent
on the priority and systems of each LGU. Under said set-up, the achievement of Universal Health Care will
take longer. With RA 10606, the process of identifying the poor/indigent is clearly laid out (i.e., it will be done
by DSWD using a proxy means test or any other similar method) and once identified by DSWD, the poor
family will be enrolled by the national government.
PhilHealth Circular No. 011-2011 entitled, PhilHealth Case Rates for Selected Medical Cases and Surgical
Procedures and the No Balance Billing Policy.
PhilHealth Circular No. 30-2012 entitled, Case Type Z Benefit Package for Acute Lymphocytic
(Lymphoblastic) Leukemia (ALL), Breast Cancer, Prostate Cancer and Kidney Transplant.
Providing Hospital/s*
320,000
250,000
PHC
129
The number of patients does not correspond to the number of claims as there are patients with more than
one claim. Payments were done in 1-3 tranches depending on the Z benefit package availed (e.g., surgery
and chemotherapy for breast cancer).
21
67
88
Prostate Cancer
Kidney Transplantation
30
33
Tetralogy of Fallot
Total
37
127
164
Note: Coronary Artery Bypass Graft, Tetralogy of Fallot and Ventricular Septal
Defect are additional Z packages implemented in February 2013, part of
Expanded Z Benefit.
Source: PhilHealth
130
131
132
133
134
135
These include farmers, fisherfolk, vendors, informal settlers, elderly, and those who may be considered as
near poor.
These include seasonal workers, apprentices, and end-of-contract workers.
These include doctors, lawyers, and other professionals.
Composed largely of the urban poor
These include land-based and sea-based workers, and undocumented workers in other countries including
residents of other countries.
Children who get married or who became mothers before reaching age 21 are no longer considered
dependents and have to enroll as members themselves.
136
137
Rizal Medical Center, Dr. Jose Fabella Memorial Hospital, Quirino Memorial Medical Center, East Avenue
Medical Center, Las Pias General Hospital, Jose Reyes Memorial Medical Center, and Eastern Visayas
Medical Center. One of the considerations in the selection of these hospitals is the readiness of their
information system that is needed for this program.
The admitting hospital shall pay the premium of P2,400 to PhilHealth (same rate as Sponsored Program).
PhilHealth in turn, will already cover the cost of hospitalization of the critical poor.
138
139
From 2010 to 2013, there were 5,569 HFEP funded projects. These projects were implemented to 4,518
health facilities. Some of the facilities received more than one project (e.g., hospitals have multiple phases
implemented in every fiscal year.
The POC received the latest CT Scan after 18 years.
From 2014 to 2016, a total of 5,326 hospitals, RHUs, and BHSs will
be covered under the HFEP. These include health facilities in all the
remaining areas in the NAPC, NHTS-PR, and CCT lists not funded
from the 2010-2013 HFEP budget.
workers for deployment must be from or near the area, or are willing and
committed to work in the area of need:
23-28 Oct
141
(20102012)
2011
Amang
3-4 Apr
Bebeng
6-11 May
Chedeng
23-28 May
Dodong
9-10 Jun
Egay
17-20 Jun
Falcon
21-25 Jun
Goring
9-10 Jul
Hanna
15-16 Jul
Ineng
17 Jul
Ambo
Butchoy
Carina
Dindo
Enteng
Ferdie
Gener
Helen
Igme
Juaning
Kabayan
Lando
Mina
Nonoy
Onyok
Julian
Karen
Lawin
Marce
Nina
Ofel
2012
31 May - 5 Jun
14-18 Jun
20 Jun
26-29 Jun
16-17 Jul
20-21 Jul
28 Jul-2 Aug
12-16 Aug
19-25 and 27-29
Aug
23-26 Aug
11-15 Sep
20-29 Sep
2-5 Oct
8-16 Oct
22- 26 Oct
Pablo
Quinta
1-9 Dec
25-27 Dec
Pedring
Quiel
Ramon
Sendong
25-28 Jul
28 Jul-5 Aug
31 Jul-1 Aug
21-29 Aug
8 Sep
12-13 and
17-18 Sep
24-28 Sep
28 Sep-2 Oct
10-14 Oct
15-18 Dec
Source: NDRRMC
Such as flashfloods, landslides, earthquakes, volcanic activities, and tornadoes, among others.
Entered and left PAR as a typhoon
Table 21: Summary of Calamity Fund and Quick Response Fund Releases (2010
2012)
Releases
(in P)
Calendar
Total
Year
Regular Calamity
QRF
Fund
July-Dec 2010
8,337,776
268,000,000
276,337,776
2011
4,132,920,444
1,787,986,466
4,132,920,444
2012
4,971,030,346
4,971,030,346
9,112,288,566
2,055,986,466
11,168,275,032
Source: DBM
142
For example, the Academic Track will have three Strands: Business, Accountancy, and Management (BAM);
Humanities, Education, and Social Sciences (HESS); and Science, Technology, Engineering, and
Mathematics (STEM).
66,800
end-2013
Teachers
145,827
end-2013
Toilets
135,847
end-2013
2014
Classrooms**
20152016*
33,479***
40,00060,000
Teachers
33,194
Around 70,000
Toilets
13,586
42,588,813
1,596,921
1,832,258
Textbooks
School Seats
* The 2015 to 2016 targets include, among others, the projected need for SHS
implementation starting SY 2016-2017, when an estimated 1.1 million students will
enroll in Grade 11 that will result to 2 million Grades 11 and 12 enrollees by SY
2017-2018. The targets are also dependent on factors such as the development of
SHS delivery mechanisms, which may include enrollment of public JHS graduates
143
in private schools through various schemes.
** These targets will come from various fund sources, including the GAA.
*** The 2014 classroom construction target comprises 15,241 to address current
need based on 2012 incremental enrollment; 8,996 to be replaced due to regular
wear and tear, and effects of natural disasters; and 9,242 to address need based
on the projected 2014 incremental enrollment.
**** The final textbook targets for 20152016 depend on the development of the
curriculum, which is still being finalized.
Note: As of SY 2012-2013, there are 20,674,892 students enrolled in public
schools. Of this number, 15,032,994 are elementary and 5,641,898 are secondary
students.
Source: DepEd
143
The Roadmap, adopted in May 2012, provides the vision and the
reforms needed in public higher education institutions (HEIs) to
improve their efficiency, upgrade their quality, and enhance the
access of Filipinos to quality education in state-funded institutions. In
pursuit of these, CHED has undertaken the following, among others:
These may include Government Assistance to Students and Teachers in Private Education (GASTPE) or
public-private partnership schemes.
144
COEs and CODs are distinctions bestowed upon an HEIs academic unit, which has exhibited exemplary
and/or above average performance, in teaching, research, and extension in its discipline.
The 2012 Impact Evaluation Study (IES) of the Program showed that 62.4
percent of technical-vocational education and training (TVET) graduates,
which include TWSP graduates, were able to find employment within an
average period of six months. In particular, the average employment rate
of TWSP graduates is estimated at 65.0 percent, which is higher than the
2012 overall employment rate of the TVET graduates. Among the five
industries, graduates from electronics/semi-conductor programs showed
the highest employability at 85.0 percent; the IT-BPM program graduates
also showed significantly high employment rate at 70.9 percent.
d. The Philippine Qualifications Framework (PQF)
To align the qualifications of jobseekers with those required by available
jobs, DOLE, in collaboration with DepEd, CHED, TESDA, PRC, DOST,
and in consultation with different industries, has pursued the
implementation of the PQF. This will establish a national standard of
skills and competencies to ensure that graduates are able to meet the
needs and expectations of potential employers. The PQF was
institutionalized through EO No. 83, which was signed by the President
on 01 October 2012, and its IRR was issued in December 2012.
145
The logistics costs refer to the average share of transportation cost to the overall cost of the good. For rice,
for example, if a kilo costs about P30, the share of the average transport cost presently is about P7 or 23
percent of the total price. The DOTC aims to lower this to P4.50 or 15 percent by 2016.
146
147
The figures refer to yearly adjusted GAA levels as indicated in the Budget of Expenditures and Sources of
Financing (BESF). The figures include a) Congressional insertions; and b) portion of the capital transfer to
LGUs (mainly from 20 percent IRA intended for development Fund and Special Shares), which are spent for
infrastructure projects.
The government received P902 million for the concession agreement, which is more than twice the minimum
bid of 371 million set by the government.
b. Tourism
148
149
150
151
152
2011
Targets
2012
2013
2014
2016
International Visitors
(in million)
3.5
3.9
4.3*
5.5
6.8
8.2
10.0
Domestic Travelers
(in million)
30.1
37.5
40.7
44.1
47.7
51.7
56.1
5.8
5.9
6.2
6.7
7.0
7.8
8.7
Tourism employment
(in million)
3.7
3.8
4.2
4.9
5.4
6.3
7.4
Tourism receipts
(in P billion)
Domestic
Foreign Visitors
109.2 124.5 160.1* 205.4 269.9
*Actual international visitor arrivals and receipts for 2012
Source: DOT
2015
350.4
455.1
To achieve set goals, the DOT, DPWH, and DOTC have collaborated
for the improvement of connectivity infrastructure (roads, airports,
and ports) leading to priority tourist destinations throughout the
country. DOT estimates that it would require approximately P63.13
billion to implement a sustainable tourism destination infrastructure
program by 2016.
As of 25 May 2013, the DPWH and DOT have initially identified
202 priority tourism road projects with an estimated funding
requirement of P53.38 billion. Of this amount, P25.34 billion has
been released from FY 2011 to FY 2013 153 , while the remaining
P28.04 billion will be considered in the DOT-DPWH Convergence
Program and/or from other DPWH programs for 2014 to 2016. In
addition, the DOTC allocated an estimated amount of P5.01 billion
for the development of ports and airports in key tourist destinations in
2013.
(Please see Annex for matrix of infrastructure projects)
153
P16.44 billion was sourced from the DOT-DPWH Convergence Program FY 2011 to FY 2013, while the
remaining P8.90 billion was sourced from other DPWH programs FY 2011 to FY 2013 (e.g., upgrading,
preventive maintenance).
155
RA 10378 removed the 3 percent Common Carriers Tax on receipts and income derived by foreign carriers
from transporting passengers; and exempted the foreign carriers from paying the 2.5 percent Gross
Philippine Billings Tax on the carriage of passengers, cargo, or mail, provided that the same exemption is
granted by the carriers home country to the Philippines.
The sector employed 11.844 million individuals out of the 37.819 million individuals employed.
income, and create jobs. The government is also pursuing the following:
development of agricultural infrastructure (i.e., irrigation, farm-to-market
roads [FMRs], and fish ports); expansion of access to formal credit;
enterprise development; and protection and regeneration of natural
resources, among others.
Among the major irrigation projects is the P11.2 billion Jalaur River
Multi-Purpose Project II (JRMP II) in Calinog, Iloilo. This Project,
which was conceptualized in 1960 and set to be the first large-scale
reservoir dam outside of Luzon, will benefit around 24,000 farmers in
two cities and 23 municipalities in Iloilo by providing year-round
irrigation to 31,840 ha of farmland. The Project will increase annual
rice production in the coverage area by 103 percent from 141,945
metric tons (MT) to 287,958 MT per year and increase annual
156
157
158
159
160
161
There are normally two cropping seasons in one year: the wet season (May to October) and the dry season
(November to April). One crop cycle is usually 120 days or 4 months.
Out of the countrys 10.3 million ha of agricultural land, the estimated potential irrigable area is 3.1 million
ha.
Rehabilitation works improve the efficiency of existing irrigation systems. While rehabilitation projects do not
expand harvest areas, such projects are crucial to avoid the deterioration of the existing facilities which can
result to a decrease in harvest areas.
Accomplishments of 2011 programmed projects finished in 2012 and 2013 are still counted under 2011
accomplishments.
Includes accomplishments for allotments received out of calamity funds.
Accomplishments of 2012 programmed projects finished in 2013 are still counted under 2012
accomplishments.
162
163
164
165
166
167
These are the municipalities of Cabatuan, Leganes, Oton, Pavia, Sta. Barbara, and San Miguel.
Rehabilitation works involve the concreting of old gravel FMR projects.
Increase from the previous width of four meters to five meters with 1.5-meter shoulder on each side, and
from thickness of six inches to eight inches. The upgraded specification would also include the construction
of cross drainage as necessary.
Average length of one tramline is 0.8 km and is estimated to cover at least 25 ha of farmland/vegetable
gardens.
Funding for 44 out of the 100 tramlines was sourced from the 2008 Malampaya Fund (P100 million) while 53
were funded under the 2009 DA regular fund (P100 million); and the remaining three units were funded
under the High-Value Commercial Crops (HVCC) Budget.
Provinces of Benguet, Kalinga, Mountain Province, Ifugao, Abra, Nueva Vizcaya, Quirino, Nueva Ecija,
Bataan, Tarlac, Laguna, Quezon, Occidental Mindoro, Albay, Camarines Norte, Catanduanes, Negros
Occidental, Iloilo, Antique, Bohol, Cebu, Leyte, Zamboanga Sibugay, Bukidnon, Davao del Sur, Compostela
Valley, Sarangani, Sultan Kudarat, North Cotabato, South Cotabato, Lanao del Sur, Maguindanao, Agusan
del Norte, and Agusan del Sur.
168
169
170
171
172
173
174
175
176
The intensified efforts during the first half of this Administration have
resulted in substantial gains in improving agricultural productivity and
achieving rice self-sufficiency.177 In 2010, milled rice178 production was
just at 10.32 million MT, translating to a rice self-sufficiency ratio (SSR)179
of only 81 percent. In 2012, through government efforts to improve palay
production and manage the demand for rice, the countrys rice SSR rose
to 94 percent. By end of 2013, with milled rice production target of
13.03 million MT, the DA expects to achieve 100 percent rice selfsufficiency.180
Figure 9: Palay Production (20102013) (in million MT)
30
20
15.77
16.68
18.03
20.04
10
0
2010
2011
2012
2013
Average palay production from 2010 to 2012 is 16.83 million MT, which is
13.48 percent higher than average production in the previous administration.
The figure for 2013 is target production level.
Source: DA
177
178
179
180
181
182
The record gains in palay production have led to lower levels of rice
importation. Total rice imports 181 were dramatically reduced from
2.47 million MT in 2010 to just 492,966 MT in 2012. NFAs actual
imports volume was reduced by 95 percent from 2.25 million MT in
2010182 to 119,777 MT in 2012.
Self-sufficiency in food staples means the country must produce the national food requirement while
maintaining a buffer stock to be used in times of need.
Based on 65 percent milling recovery rate used in converting palay to milled rice.
Using the Food and Agriculture Organization (FAO) of the United Nations formula for Self-Sufficiency Ratio:
SSR=[Production/(Production + Imports Exports)]*100
Barring natural disasters that may significantly affect production.
Not including volume imported as MAV commitment of the country under the WTO
Includes 51,300 MT contracted in 2010 but arrived in 2011 and 67,550 MT contracted in 2010 but arrived
early in 2009
0.85
2010
2011
NFA
2,250,946 200,000
Private Sector 219,961 654,995
Source: DA
183
184
185
0.49
0.35
2012
119,777
373,189
2013
187,000
163,000
With the higher value of premium rice varieties in the international market, the exportation program also
serves as a strategy in balancing trade, in view of the continued obligation of the country under WTO to
allow rice importation
The shipment contained 20 MT of Jasponica rice (long grain, aromatic, white and brown rice) from Nueva
Ecija, and 15 MT of premium black rice from North Cotabato.
The last time the country exported a comparable volume of rice was in 1973. However, this was in the form
of payment to an international obligation and not for commercial distribution.
DAR has been working in close coordination with the Land Bank of
the Philippines, the DENR, and the Land Registration Authority in
order to address problems in land acquisition and distribution.
From July 2010 to June 2013, the DAR acquired 389,719 ha of
arable land, and distributed 358,686 ha to Agrarian Reform
Beneficiaries (ARBs).
Table 28: LAD Accomplishments vs Targets
% Net
% Gross
CARP
Gross
Targets
Accom
Accom
Period
Area
Area
(ha)
vs.
vs
186
(ha)
(ha)
Target
Target
Jul Dec
88,541
94,326
2010*
Jan Dec
200,000
111,889
56
120,284
60
2011
Jan Dec
180,000
102,307
57
115,124
64
2012
Jan Jun
160,000
55,949
35
59,985
37
2013
*JulyDec 2010 accomplishments cannot be compared against a target as
DAR targets are identified per annum.
Source: DAR
It is worth noting that LAD targets prior to 2013 were set using the
available database from the previous administration which did
not accurately reflect status of the landholdings to be covered by
this Administration, and was not able to capture those that were
supposed to be in the advanced stage of the LAD process which
turned out to be problematic. In 2012, DAR conducted a
nationwide review of all claim folders 187 pending at municipal
and provincial offices with the intent of cleaning up the database.
This resulted in a more realistic target setting and the creation of a
database reflective of the actual status of landholdings.
The government commits to acquire the Gross LAD Balance of
823,393 ha and distribute the Net LAD Balance of 648,393 ha by
the end of this Administration. The Net LAD Balance assumes that
175,000 ha out of the Gross LAD Balance as of 30 June 2013 will
go to landowners retention (each landowner is allowed 5 ha
each).
186
187
The Gross Area is the sum of the CARP Area and non-CARP area or portions that have not been distributed
to ARBs because they cannot be covered (e.g., above 18 percent slope undeveloped, creeks, barangay
roads, etc.) while CARP Area are those actually distributed to ARBs.
A Claim Folder contains all documents required in acquiring and distributing a particular landholding which
are gathered throughout the entire land acquisition and distribution process.
(A)
(B)
(C)
2013 (D)
2014
100,015
206,025
34,682
100,015
240,707
2015
JanJune 2016
124,887
54,631
55,820
72,333
180,707
126,964
C
D
Source: DAR
Subject to change: (1) Lands assumed to be under compulsory acquisition may be voluntarily offered by its
landowners before NOCs are sent to them; (2) Landowners who have signified their intent to voluntarily offer
their land but failed to formalize it may be subjected to compulsory acquisition and sent NOC; (3) NGOs and
CSOs have until September 2013 to submit list of lands that are not included in DARs list.
189
190
191
Joint DA-DILG Administrative Order No. 1, s. 2011, entitled Establishing a Closed Season for the
Conservation of Sardines in East Sulu, Basilan Strait, and Sibuguey Bay. Using BFAR vessels, BFAR,
DILG, and the Philippine Coast Guard jointly patrol the areas for conservation during the implementation of
the closed season.
Closed season prohibits any person, association, or corporation to kill or catch, or cause to be killed or
caught or taken, any of defined sardines species in the conservation areas using commercial purse seine,
commercial ringnet, commercial bagnet and scoop net. Purchasing, selling, or possession of sardines
caught in the area is also prohibited.
Closed season for the first year of implementation is from 01 December 2011 to 01 March 2012.
the closed season scheme was replicated in the Visayan Sea from
November 2012 to March 2013.
192
193
Payao is the local term for a Fish Aggregating Device (FAD), which is used to lure fish in marked spots.
FADs are considered as one of the most effective fishing technologies that significantly contributed to
marine fisheries production in the country.
Benham Rise, which is located off the provinces of Isabela and Aurora in East Luzon, is a 13 million ha area
rich in yellow fin and blue fin tuna, blue marlin, skipjack and round scad, among others. The United Nations
has declared the area as part of Philippine territory on 12 April 2012.
the lack of facilities in those areas such as fish ports, landings and
docking facilities. To help address the concern, the government
targets to develop 23 fish port sites in 2013 and 21 more in
2014. 194 Also in 2014, the DA proposes to construct eight Ice
Plant and Cold Storage (IPCS) facilities. These facilities will help
reduce postharvest losses and allow fisherfolk to command higher
prices by preserving the freshness of their fish catch.
d. Sitio Electrification
Through the DOEs Sitio Electrification Program (SEP), the government is
energizing rural areas to improve the quality of life, spur economic
activity, and generate employment for the rural populace. The
accelerated SEP targets to energize 36,000 sitios by end-2016. From the
start of its implementation in October 2011 up to June 2013, 8,581 sitios
have been energized at an average cost of P618,000 per sitio, which is
more cost-effective compared to the previous administrations average of
P870,000 per sitio.
e. Power Generation Mix
Energy is needed to sustain the countrys growing economy and serve as
catalyst for improvement of lives of the people. Towards this end, the
government is pursuing an energy strategy towards self-sufficiency,
affordability, and stability by diversifying its power generation sources.
The government is balancing availability of baseload capacities using
traditional sources (i.e., coal, oil-based, and natural gas) and
environment-friendly, renewable energy sources (e.g., hydro,
geothermal, wind, solar, and biomass).
194
2011
Volume
% share
(in GWh)
25,342.18
36.63
3,397.60
4.91
20,591.32
29.77
9,697.53
14.02
9,942.33
14.37
89.42
0.13
115.27
0.17
69,175.65
100.00
40,435.87
58.45
19,844.55
28.69
2012
Volume
% share
(in GWh)
27,948.16
38.63
3,562.83
4.93
19,617.05
27.12
10,849.04
15.00
10,161.98
14.05
76.99
0.11
124.22
0.17
72,340.28
100.00
40,829.29
56.44
21,212.23
29.32
The DOE, through the NEA, is set to implement the Modular Generator
Sets (Gensets) Program as one of the measures to address the interim
(2013 to 2015) power supply situation in Mindanao. Gensets will be
offered to electric cooperatives (ECs) in the area at a low interest rate to
be embedded in their distribution systems. However, the ECs will
shoulder the costs of the operation and maintenance of the gensets.
195
196
197
198
The difference between the present value of future benefits and operating expenses vis--vis current assets
and the present value of future contributions. It is caused by the existing structural imbalance in funding.
0.6 percent increment to be divided equally between employer and employee. This is equivalent to an
additional P6.00 for every P1,000 increment in the members MSC.
Entitled Granting of Carers Allowance to Employees Compensation Permanent Partial Disability (PPD)
and Permanent Total Disability (PTD) Pensioners in the Public Sector and Increasing the Amount of
Employment Compensation Benefits for Employees in the Public Sector, respectively.
As stipulated in EO Nos. 134 and 135, s. 2013
Table 32: Projected Funding Requirements for the AFP (in P billion)
2011 2012 2013 2014 2015 2016 2017 2018
Pension
36.80 38.44 39.70 39.10 43.84 49.53 56.27 64.19
Personnel 49.29 51.52 53.45 53.47 57.05 60.92 65.17 69.85
Services
Source: DBM
2019
73.83
75
2020
84.99
80.66
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Pension
PS Active Military
199
200
The current pension system for the AFP is prescribed by Presidential Decree Nos. 361 (Providing for an
Armed Forces Retirement and Separation Benefits System) and 1638 (Establishing a New System of
Retirement and Separation for Military Personnel of the AFP and for Other Purposes).
The current pension system for the PNP is prescribed by Republic Act No. 8551 (An Act Providing for the
Reform and Reorganization of the PNP and for Other Purposes, Amending Certain Provisions of RA 6975).
To address the problem, the DBM, DOF, and DND are currently
considering the following, as proposed under the pension reform bill:
Removal of the indexation to salary of active members;
Establishment of a fund for new entrants to be managed by GSIS,
wherein members will contribute to the fund; and
Deactivation of the AFP - Retirement and Separation Benefits
System.
201
202
Promotes a framework of sustainable agriculture and rural development through integrating people,
economy and environment; optimizing resources and creating substantial effect in the short-term; and
facilitating model-building across ecosystems, production systems, and rural poverty sectors/small
producers in the long-term
Currently under evaluation.
Table 33: Status of the AFP/PNP Housing Program (As of 19 July 2013)
Phase I
Phase II
Budget
P4.6 billion
P8.5 billion
500 million for the
additional 2,498 units for
203
the BJMP/BFP
Timeline
May 2011 March 2012
March 2012 August
2013
Housing Units to
21,800 (AFP/PNP)
31,200
be Built
2,498 (BJMP/BFP)
Allocation of
10,900 units to the AFP
14,040 units to the AFP
Housing Units
10,900 units to the PNP
14,040 units to the PNP
2,498 units to BJMP/BFP
1,810 units to the BFP
1,060 units to the BJMP
204
250 units to the BuCor
Status
Housing Units
Awarded to
Program
Beneficiaries
Target Date of
Occupancy
Completed
21,800 units
(as of March 2012)
2,498 units
(as of June 2013)
September 2013
Source: NHA
203
204
In November 2011, DBM released an additional 500 million for the construction of 2,498 housing units for
the BJMP and BFP personnel. As of June 2013, the additional 2,498 housing units were completed.
On 21 February 2013, NHA submitted the revised allocation of 31,200 housing units in Phase II that includes
BuCor employees. A total of 250 housing units from the BJMP (188) and BFP (62) were re-allocated to
BuCor.
205
206
207
208
209
The EPI ranks countries on performance indicators tracked across policy categories that cover both
environmental public health and ecosystem vitality. These indicators provide a gauge at a national
government scale of how close countries are to be established environmental policy goals. (Source:
http://epi.yale.edu/).
A higher rank indicates that a country or region is closer to achieving its established goals in environmental
policy.
The United Nations University Institute for Environment and Human Security, the Alliance Development
Works, and The Nature Conservancy calculate risks by the extent to which communities are exposed to
natural hazards and the degree of vulnerability, which is dependent on social factors such as public
infrastructure, governance, condition of the environment, among others. (Source: World Risk Report 2012,
http://www.ehs.unu.edu/article/read/worldriskreport-2012).
Lasco, Rodel D. and Rafaela Jane P. Delfino. Institutional and Policy Landscapes of Disaster Risk
Reduction and Climate Change Adaptation in Asia and the Pacific: A Joint Project of the World Agroforestry
Centre (ICRAF) Philippines and United Nations International Strategy for Disaster Reduction Secretariat
(UNISDR) Asia and Pacific Regional Office. September 2010.
The NDRRM Plan defines the responsibilities of government agencies on DRRM in the pre- and postdisaster phases in the following thematic areas: Prevention and Mitigation, Preparedness, Response, and
Rehabilitation.
Geohazard
(1:10,000
scale)
Target
28
most
disasterprone areas
1,634
municipalities
and cities
Accomplishment
2012
15
(as of
June
2012)
241
(as of July
2012)
2013
13
(as of
Dec
2012)
255
(as of
June
2013)
Total
28
(100%)
496
(30%)
Next Steps
Completion Multihazard map for
Metro Manila
within 2014
Completion of
balance of 1,138
completed by
end-2014
210
211
Hazards Mapping and Assessment for Effective Community-Based Disaster Risk Management
Metro Manila areas, Laguna, Cavite, Bulacan, and Rizal. Other government mapping efforts such as those
which are being developed by the MGB (e.g., for areas prone to rain-induced landslides) and PHIVOLCS
(e.g., for areas prone to volcanic activity, earthquake, tsunami, liquefaction, etc.) will cover the rest of the
provinces.
212
213
214
215
These are: (1) Cagayan; (2) Mindanao; (3) Agusan; (4) Pampanga; (5) Agno; (6) Abra; (7) Pasig-MarikinaLaguna; (8) Bicol; (9) Abulug; (10) Tagum-Libuganon; (11) Ilog-Hilabangan; (12) Panay; (13) Tagoloan; (14)
Agus; (15) Davao; (16) Cagayan de Oro; (17) Jalaur; and (18) Buayan-Malungon.
Disaster Risk Exposure Assessment for Mitigation Light Detection and Ranging Project
These are: (1) Pampanga; (2) Agno; (3) Cagayan de Oro; (4) Iligan; (5) Tagaloan; (6) Jalaur; (7) Panay; (8)
Hilabangan; (9) Buayan-Malungon; (10) Bicol; (11) Davao; (12) Agusan; (13) Magasawang Tubig.
These are: Marikina, CDO, Iponan, Iligan, Mandulog, Pampanga, Angat and Davao.
Tsunami monitoring and warning systems have also been installed in the
gulfs of Lingayen (one tsunami detector and one alerting siren in
Bolinao, three alerting sirens in Dagupan, and one in Lingayen) and
Albay (one tsunami detector and four alerting sirens in Rapu-Rapu, and
four alerting sirens in Legazpi City).
216
217
These are in addition to the existing two upgraded Doppler radars in Baler (2008) and Baguio (2009).
The plan includes a set of priority structural and non-structural measures. The projects will undergo
individual feasibility studies and detailed design prior to implementation.
implemented up to 2035, covering not only Metro Manila, but also the
surrounding provinces (i.e., Rizal, Laguna, and parts of Bulacan).
218
219
220
221
222
223
224
The DPWH has also been developing master plans and feasibility studies
for flood control and drainage projects in 56 river basins 224 (e.g.,
Pampanga, Tagoloan, Cagayan, Agno, Imus, Bicol, and Cagayan de
Oro), for implementation from 2009 to 2034. Further, the DPWH,
DENR, DA, and DAR have collaborated to implement water-related
There are 12 completed sub-projects as of 25 June 2013 in Valenzuela City, Bulacan, Malabon City,
Marikina City, Pasig City, and Rizal.
Funded under 2010, 2011, 2012, and 2013 Infrastructure Program
This includes the construction of pumping stations.
The Blumentritt Interceptor has a total length of 3.306 km and a total volume capacity of 36,048.72 cubic
meters (cu. m).
There are two pumping stations in Pasay; nine in Manila; and one in Makati. The procurement process will
take over a month starting in the first week of July and will be finished by first week of August. As such, the
project is expected to be finished in 240 days or 8 months after the receipt of the winning bidder of the notice
to proceed (NTP).
Funded under 2011, 2012, and 2013 Infrastructure Program
These 56 river basins were identified from JICAs study in March 2008, which was based on natural and
socio-economic conditions, including economic efficiencies, and consideration of possible investment and
strategic importance.
With an initial budget of P10 billion, 19,440 ISFs out of 60,130 ISFs
living on waterways will be relocated to off-city and in-city resettlement
sites.
A total of 7,900 ISFs from San Juan and Tullahan Rivers will be
prioritized and will begin to be relocated from 01 August to 01
September, and 01 September to 01 October 2013, respectively, since
these rivers have the potential of moving a huge amount of water into
Manila Bay and such relocation has the support of their respective LGUs.
Below is the target schedule of relocation:
225
226
227
228
The DPWH constructs flood-control projects in critical watershed and flood-prone areas; DENR implements
projects to protect, rehabilitate, and manage watersheds; DA undertakes water-resource projects for
irrigation purposes; and DAR develops agrarian areas within river system areas.
NHA estimates that of the 1.5 million ISFs: (1) 584,425 (38.9 percent) are located in NCR; (2) 198,873
(13.24 percent) in Northern and Central Luzon; (3) 393,261 (26.18 percent) in Southern Luzon; (4) 104,022
(6.92 percent) in Visayas; and (5) 221,755 (14.76 percent) in Mindanao.
DSWD will conduct biometric scanning and disburse the P18,000 to ISFs living on top of esteros/waterways.
These eight priority waterways are: (1) Pasig River; (2) San Juan River; (3) Tullahan River; (4) Manggahan
Floodway; (5) Maricaban Creek; (6) Tripa de Gallina; (7) Estero de Maypajo; and (8) Estero de Sunog Apog.
Among the 19,440 ISFs either living on top of waterways or within the
three-meter easement, those who opt for immediate transfer to
resettlement areas will receive an P18,000 resettlement assistance; those
whose resettlement sites are in-city but not ready for occupancy will be
provided P18,000 (in tranches) as rental assistance.
On 19 June 2013, DBM released P374.4 million to DSWD 229 for the
payment of the subsidy under its Interim Shelter Fund for Informal Settler
Families Program.
The NHA has targeted 28,398 housing units for ISFs, of which 12,926
are completed for off-city resettlement as of July 2013. Of the completed
units, 8,084 units have been turned over to ISFs living in danger areas.
The remaining 4,842 units are allocated for the relocation of ISFs living
along the priority waterways.
A total of 8,534 housing units in Bulacan, Cavite, and Rizal are expected
to be completed by the first quarter of 2014. A total of 6,080 housing
units in Manila, Caloocan, Valenzuela, Pasig, Mandaluyong, Navotas
(for in-city resettlement) and San Jose del Monte, Bulacan, are expected
to be completed by the third quarter of 2014 while 858 housing units
will result from CSO proposals.
229
230
231
232
Breakdown of the P374.4 million as follows: (a) P349,920,000 for the Interim Shelter Fund for the 19,440
ISFs (P18,000 each per ISF); and (b) P24,449,400 for administrative and mobilization costs.
The HDH Program, which provides loan assistance to organized communities of ISFs living in danger areas
in NCR, is an in-city or near site relocation or a land sharing arrangement wherein a significant number of
ISFs are accommodated in multi-story buildings.
The maximum ceiling for the loan is P400,000, with an interest of 4.5 percent per annum, for a maximum of
30 years. To make the loan affordable, SHFC adopted a graduated amortization scheme which will allows
beneficiaries to pay lower monthly amortizations on the first year with a gradual increase of 10 percent up to
th
10 years. The succeeding monthly amortization after the 11 year is fixed.
Peoples Proposal is the involvement of the ISFs themselves in the planning and implementation stages of
their housing and other shelter facilities.
ANNEX
CONNECTIVITY INFRASTRUCTURE
National Road Development
A good and well-maintained road network supports and improves the countrys
competitiveness. Towards this, the government shall pave all remaining unpaved
sections of the national road network (7,256 km) by 2016. For 2010 to 2013, it
allocated P70 billion for the purpose. An estimated P101 billion is needed to complete
the program on top of the P70 billion. 233
Table 37: Paving of the National Road Network
Actual
20102013
Type of National
Accomplishment
Target
Accomp.
Road
(in km) January
(km)
(%)
2010May 2013
Arterial Roads
1,015.97
1,202.80
84.5
Secondary Roads
1,687.06
1,916.90
88.0
Total
2,703.03
3,119.70
86.6
Source: DPWH
20102016
Target
(km)
1,888.42
5,368.05
7,256.47
Accomp.
(%)
53.8
31.4
37.2
Aside from paving roads, the DPWH also targets to make all temporary bridges along
national roads permanent by 2016. From January 2010 to May 2013, the DPWH has
made permanent 6,647 lm of temporary bridges, which is 48 percent of the 13,839 lm
target until 2016.
In partnership with the DOT, the DPWH is also improving and upgrading roads
leading to priority tourist destinations in support of the countrys targets to achieve 10
million international tourist arrivals and 56.1 million domestic travelers by 2016.
Table 38: Key Tourism Road Projects
Road Description and Location
1. Ternate-Nasugbu Road
A 6.045 km tourism road connecting the
coastal towns of Ternate, Cavite and
Nasugbu, Batangas to Metro Manila
Will improve access to major beach resorts
such as Puerto Azul and Caylabne
Will reduce travel time between Nasugbu,
Batangas and Manila from four hours and
30 minutes (currently via Tagaytay
Highway) to three hours upon project
completion
233
Project
Cost
(in P
million)
860.09
Total
Released
(in P
million)
860.09
Remarks/Timeline
The road has been
passable since 01
July 2013, with
some slope
protection works
still ongoing.
Target full
completion is in
September 2013.
The specific targets are to pave all unpaved sections of the national arterial road network by 2014 and
national secondary road network by 2016, based on the 2010 Road Condition Data. The targets exclude
newly converted national roads and constructed gap sections along predetermined road alignment in 2011
and succeeding years.
79.75
79.75
Started in January
2013 and targeted
for completion in
August 2013
40.57
40.57
Started in March
2011 and
completed in June
2012
120.00
105.00
769.20
269.20
700.00
100.00
1,316.00
416.00
Province
Basilan
Sulu
Tawi-Tawi
Lanao del Sur
Maguindanao
Total
Transition
Investment
Support Program
(TISP)-ARMM
(FY 2011 to FY
2013)
0.513
0.493
0.211
0.911
0.723
2.851
Other
Projects
(FY 2011 to
FY 2013)
0.532
0.715
0.410
0.663
1.079
3.399
Total
2.099
1.208
0.621
2.342
2.511
8.781
Note: An additional P2.73 billion was requested from the DBM for additional priority projects and for the
completion of projects previously funded under the TISP-ARMM.
*Figures do not add up due to rounding
** Refers to total contract cost of projects
Source: DPWH
In September 2012, the DPWH completed three bridges 235 along the Sanga-SangaBato-Bato-Lapid-Lapid National Road in Bongao, Tawi-Tawi. Previously, travel by sea
from Bongao to mainland Tawi-Tawi took two hours and 30 minutes. With the
completion of the bridges, average travel time was reduced to 30 minutes (by land),
234
235
The Saudi Fund for Development provides financial assistance for the implementation of development
projects (e.g., infrastructure) in developing countries. These loans are made available quickly without
conditions, with up to 50 years repayment periods and 10-year grace periods, among others.
These bridges are Bridge I (39.624 lm) along Lapid-Lapid Section; Bridge II (101.745 lm) along Bukawan
Dakula Section; and Bridge III (30.48 lm) along Sanga-Sanga Section in Bongao, Tawi-Tawi. The total
project cost of the three bridges is P297 million, funded from the DPWH Budget FY 2009 to FY 2011.
benefitting around 100,000 residents in the area. The bridges also improved
connectivity between Bongao, the capital town of Tawi-Tawi; the Sanga-Sanga
Airport; and the Municipalities of Languyan and Panglima-Sugala.
Aside from these, the DPWH is also pursuing the completion of circumferential roads
and other major roads that will improve inter-provincial connectivity within the
region. For one, the Lake Lanao Circumferential Road (110.39 km) will reduce travel
time around Lake Lanao from three hours to one hour and 45 minutes, benefitting
around 608,000 residents.236 The project was originally approved for implementation
in 2002 but has been delayed due to, among others, the peace and order situation in
the project area.237 The DPWH targets to complete the project in February 2015.
Other major road projects in ARMM for completion in 2014 include the Basilan
Circumferential Road (133 km)238 and the Cotabato City East Diversion Road (13.27
km).239
Airport and Seaport Development
Most Philippine airports are unable to keep up with growing passenger demand, and
the government recognizes that this must be addressed to support the growing number
of tourist and investors visiting the country. As such, the DOTC has undertaken the
following reforms in planning and implementing airport projects:
Constructing key airport projects using government funds and engaging the private
sector for the operations, maintenance, and future expansion rights under a PPP
arrangement, allowing the airport project to commence quickly while still
harnessing the benefits of PPP.
236
The Project starts at Marawi City and passes through the Municipalities of Ditsaan-Ramain, Bubong, BuadiPuso, Molundo, Taraka, Tamparan, Masiu, Lumbayanague, Lumbatan, Bayang, Binidayan, Pualas,
Ganassi, Madamba, Madalum, Bacolod Kalawi, Balindong, and Marantao, and ends back at Marawi, Lanao
del Sur.
The Lake Lanao Circumferential Road (under the Mindanao Roads Improvement Project) was originally
approved by the NEDA ICC-Cabinet Committee in 2002, with target implementation period from 2005 to
2008. However, the project was approved for loan extension twice (in November 2009 and September 2012)
due to implementation delays resulting from change in project design, slow disbursement, and peace and
order situation in the project areas, which halted or slowed down construction.
The Basilan Circumferential Road starts at Isabela City and passes through Lamitan City and the
Municipalities of Tuburan, Al-Barka, Tipo-Tipo, Ungkaya Pukan, Sumisip, and Maluso, and ends at
Tumahubong, Basilan. The project will reduce travel time around Basilan (through the entire stretch of the
circumferential road) from three hours and 45 minutes to two hours, benefitting around 450,000 residents.
The Cotabato City East Diversion Road will provide an alternate route to decongest traffic along Sinsuat
Avenue in the Central Business District of Cotabato City. It starts along Marbel-Allah-Cotabato Road in
Cotabato City and ends at Cotabato City-Lanao/Davao City Road. It also passes through the Municipalities
of Datu Odin Sinsuat and Sultan Kudarat, Maguindanao. Upon completion, the project will reduce average
travel time going to and from Cotabato City town proper from 50 minutes to 25 minutes.
237
238
239
240
241
Tacloban Airport
Phased implementation of airside
civil works (e.g., concreting of apron
and taxiways)
Implementation of landside civil
works (e.g., demolition of existing
structures, construction of a new
access road, parking area,
passenger terminal building, cargo
terminal building, and air traffic
control tower building)
Laguindingan Airport
Construction of a new internationalstandard domestic airport to serve
Northern Mindanao and replace
Lumbia Airport (Cagayan de Oro
The airport will operate with no navigation aid installed, with airport traffic to be handled/advised by the
ground crew and flight service station personnel.
A system of radio navigation intended to assist aircraft in landing by providing lateral and vertical guidance,
which may include indications of distance from the optimum point of landing.
Source: DOTC
The DOTC is also pursuing the night-rating242 of eight provincial airports (i.e., Butuan,
Cotabato, Dumaguete, Tuguegarao, Dipolog, Roxas, Ozamis, and Busuanga Airports)
to help decongest passenger traffic at NAIA by allowing airlines to offer flights to and
from these airports at night, providing passengers greater flexibility in scheduling their
trips. The projects are targeted to be awarded by the fourth quarter of 2013 and
completed by December 2014.
DOTC and PPA are also working on the development/improvement of 18 ports (e.g.,
Iloilo, San Jose, Naga, Kalibo, and Catarman), which is expected to increase passenger
traffic and improve access to tourist destinations in Iloilo, Mindoro Occidental,
Camarines Sur, Aklan, and Northern Samar, among others. Of the 18 ports, 5 are
targeted for completion by end-2013, an additional 8 ports by 2014, and the rest are
expected to be substantially completed before the end of the Presidents term in 2016.
Public Private Partnership (PPP)
The government is promoting PPP as an alternative financing scheme in developing
long-term infrastructure projects. In undertaking PPPs, the government fosters wider
participation of the private sector as partners in development under fair, transparent
and competitive processes. While the development of quality PPP projects may take
time, this scheme will ensure that government is able to deliver the needed public
services at the highest level of quality and efficiency that the private sector can offer.
PPP also drives innovation through the sharing of skills and knowledge between public
and private partners.
242
Refers to the installation and/or upgrading of airport equipment (e.g., communication and lighting equipment)
to allow take-off and landing operations at night
Moreover, PPP projects not only provide investments necessary for infrastructure from
the private sector, but also generate additional revenues for the government. For
instance, the Daang Hari-SLEX Link Connector and NAIA Expressway Project-Phase II
generated P902 million and P11 billion in revenues, respectively, from the upfront
payment of the winning contractor.
Out of the 11 major PPP projects approved by the NEDA Board as of end-June 2013,
10 have been rolled out. 243 Of these, three projects have been awarded, with
construction of two projects ongoing.
Table 40: Rolled Out PPP Projects
Project
Daang Hari-SLEX Link Road Project
Construction of a 4 km, 4-lane paved toll road that will
connect Bacoor, Cavite to SLEX
Status/Timelines
Project is 30% complete as
of 25 June 2013. Target
completion is June 2014.
Ongoing construction of
2,142 classrooms (23% of
the total 9,303 classrooms
under the project) as of 15
July 2013
Target completion is in
April 2014
PSIP-Batch II
Construction of 10,679 classrooms with toilets and furniture in
5,167 public schools in 14 regions across the country
NAIA Expressway-Phase II
Construction of a 7.15 km, 4-lane elevated expressway that
will interconnect the three NAIA terminals and will provide
better access to the PAGCOR Entertainment City
Ongoing procurement of
project concessionaire
243
Rolled out projects refer to those that have been advertised and issued Invitation to Prequalify to
Bid/Invitation to Bid (solicited projects) or undergone Swiss Challenge/Comparative Proposals (for
unsolicited projects). Of the 11 NEDA Board approved PPP projects, only the NLEX-SLEX Link Connector
Road, an unsolicited project, is yet to be rolled out. The Swiss Challenge for the project will be conducted
from January to March 2014.
Rehabilitation works:
2014 to 2016
In addition, the government is tapping PPP to implement big-ticket projects that will
address traffic congestion in Metro Manila, particularly EDSA, which impedes
productivity and economic development.
The government is pursuing the construction of two elevated expressways that will
directly connect NLEX and SLEX: the Metro Manila Skyway Stage 3 and the NLEXSLEX Link Connector Road.
The 14.3 km, six-lane Skyway Stage 3 will start from Balintawak, Quezon City to
Buendia, Makati, using predominantly the median of Quirino, G. Araneta and A.
Bonifacio road network. The total length of the Skyway Stage 3 includes the 5.5
km, six-lane section from Buendia, Makati to the Polytechnic University of the
Philippines (PUP) in Sta. Mesa, Manila that it shares with the NLEX-SLEX Link
Connector Road.
The remaining 8.0 km of the four-lane NLEX-SLEX Link Connector Road will run
along the Philippine National Railways right-of-way, starting from C3 Road in
Caloocan City crossing Espaa, Manila towards PUP, Sta. Mesa, continuing to the
shared section.
Average travel time from NLEX to SLEX passing through any of the two proposed
expressways is expected to be reduced from the current 1.5-2 hours to just 15-20
minutes. Average travel time from Clark, Pampanga to Calamba, Laguna is
expected to be reduced from approximately 3 hours to 1 hour and 40 minutes. The
expressway projects will jointly benefit about 55,000 motorists per day.
2013 SONA Technical Report | 8