good governance is good economics - 2012 yearend briefing
DESCRIPTION
Good Governance is Good Economics - 2012 Yearend BriefingTRANSCRIPT
The Republic of the Philippines
Good Governance is Good Economics: Achieving Investment Grade
February 2013
Contents
I. Macroeconomic Performance and Outlook � Real Sector ......................................…………………………………. . � Monetary, External and Financial ………………………………………. � Fiscal
• Revenue Collection and Debt Management ……………………. • Expenditure Management and Procurement Reforms …………
II. Sectoral Performance and Outlook� Trade, Industry and Investments .................................. …………….. � Agriculture ……...………………………………………………………… � Tourism …………………………………………………………………… � Infrastructure
• Energy ……………………………………………………………… • Transport and Flood Management ……………........................... • Airports, Seaports, and Mass Transport Systems ...................... • Public-Private Partnership ….…………...………………………..
III. Profiles of Speakers and Panel Discussants ..……………………………... IV. Directory of Economic Agencies …………………………………………….. V. Investor Relations Office Brochure …………………………………………..
2
319
3246
627996
107119138147157175177
Secretary Arsenio M. Balisacan
National Economic and Development Authority
Real Sector
3
Comparative GDP growth shows Philippines performing better in recent years...
Sources: ADB ARIC; official country websites
*Indonesia: Reuters
2012 FY data for Thailand and Malaysia are not yet available
GDP Growth: Philippines vs. Other Asian Countries
%
7.8
6.2
5.0
6.6
1.2
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2005 2006 2007 2008 2009 2010 2011 2012
China Indonesia* Viet Nam Malaysia
Philippines Thailand Singapore
4
The 2012 growth brings us closer to 7-8% target
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GDP growth rate Low-end target High-end target
*Phi l ippine Development Plan: 2011 – 2016 targets
GDP Growth Rate vs. Official Target
%
5
Philippines is commended for sound macroeconomic fundamentals
2
3
4
5
6
7
8
9
2005 2006 2007 2008 2009 2010 2011 2012
Headline Inflation Low Target High Target
Low and stable inflation Favorable interest rates and sound banking system
Sustainable fiscal position Strong external position
% %
%%
-5.00-4.50-4.00-3.50-3.00-2.50-2.00-1.50-1.00-0.500.00
40.00
45.00
50.00
55.00
60.00
65.00
70.00
2005 2006 2007 2008 2009 2010 2011 2012
NG Debt/GDP (LHS) Fiscal Balance/GDP (RHS)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2005 2006 2007 2008 2009 2010 2011 2012*External Debt/GDP ratio, LHS Current Account/GDP ratio, RHS
% %%
* CA: Jan - Sept 2012;
External Debt: as of Sept 2012
0.0
5.0
10.0
15.0
20.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2005 2006 2007 2008 2009 2010 2011 2012
NPL Ratio, LHS
Real interest rates, LHS
CAR, RHS
6
Q1-Q3
Improvement in governance and competitive indicator s......with ratings moving in the right direction
WEF Competitiveness Rankings Philippines Credit Ratings
Source: Moody’s, S&P and Fitch
7
-20
-10
0
10
20
40
50
60
70
80
10 20 30 40 50 60 70 80 90
POV Trend Cycle
Hodrick-Prescott Filter (lambda=1600)
Self-rated poverty
Source: SWS Survey http://www.sws.org.ph/ind-pov.htm
-3
-2
-1
0
1
2
3
0
2
4
6
8
5 10 15 20 25 30 35 40 45 50 55
S_HUNGER Trend Cycle
Hodrick-Prescott Filter (lambda=1600)
Has growth been inclusive?Self-rated poverty and severe hunger exhibit declining trend
Severe hunger
8
61.7%
11.2%
12.6%
14.5%
2009
62.5%
10.9%
12.5%
14.1%
2010
62.4%
10.8%
12.8%
14.1%
2011
Regional GDP, in % share to Philippine GDP (2009 – 2 011)But distribution of economic activity remains unequal
9
Addressing constraints to growth
� Accelerate infrastructure development� Provide adequate and efficient power supply� Enhance administrative efficiencies
10
Improve revenue and tax efforts to increase resourc es for infrastructure and social spending
Revenue and Tax Efforts (%of GDP)
*Q1 – Q3 only
14.37
15.62
16.49
15.58
13.99
13.42
13.97
14.72
12.43
13.71 13.54 13.59
12.23 12.15
12.35
13.11
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
2005 2006 2007 2008 2009 2010 2011 2012
Revenue Effort* Tax Effort*
11
Ensure that no region is left behind…
I SA B EL A
PA L A WA N
LE Y TE
QU E Z ON
B UK I D N O N
C AG A Y AN
C EB U
S AM A R
A B RA
IL O I LO
C O T AB A TO
B O H OL
A P AY A O
AG U S A N DE L S U R
C AP I Z
N UE VA EC I JA
PA N G A S IN A N
T A R LA C
Q U I RI N O
I F UG A O
NE G RO S O C CI D E NT AL
D AV A O D E L S U R
A U R O R A
K A LI NG A
ZA M B AL E S
AL BA Y
M A SB A TE
M A G U IN D A N AO
C AM A R I N ES S U R
B AT A N G AS
B U L AC A N
A N T I Q U E
D A VA O O R I EN T AL
AK LA N
N EG R O S O R I EN T AL
B E NG U E T
N U EV A VI Z CA Y A
S U LT AN K U D A RA T
ZA M B O A NG A D E L N O R TE
S U R IG A O D EL S U R
LA N AO D E L S U R
M IN D O R O O C C I DE N TA L
EA S T E RN S AM AR
S O U TH C O TA B A T O
I LO C O S N O R T E
SA R AN G A N I
RI Z AL
M IN D O R O O R I E N T AL
C O M PO S TE L A V A LL EY
LA G U NA
IL O C O S S U R
C A V IT E
S O RS O G ON
M I S AM I S O R I EN T AL
ZA M B O A NG A D E L S UR
NO R TH E R N S A M AR
P A M P AN G A
B A TA A N
S U LU
LA N AO D E L N O R TE
L A UN I O N
AG U S AN D E L N O R TE
D AV A O D E L N O R T E
BA S IL A N
M T P RO V I N CE
ZA M B O A N G A S IB U G A Y
C A M A R IN E S NO R T E
C A TA N D U AN E S
M IS A M I S O C C ID E N T AL
SO U T H ER N L EY T E
R O M B LO N
M A R I ND U Q UE
B I LI RA N
SU R I G AO D E L N O R T E
TA WI - TA WI
G UI M A R A S
M E TR O M A N IL A
S I Q UI JO R CA M I G U IN
B A TA N ES
National Road Classification
North-South Backbone
East-West Lateral
Other Road of Strategic Importance
Secondary National Road
Source: DPWH12
� High priority given to health and education
� Conditional Cash Transfer Program
� K+12 program
� Competence in Math, Science and English
Firm commitment to meet the Millennium Development Goals
13
0.0
2000.0
4000.0
6000.0
8000.0
10000.0
12000.0
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
Indonesia
Malaysia
Philippines
Thailand
Vietnam
32.2
11.1
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
30.0
31.0
32.0
33.0
34.0
35.0
36.0
37.0
2005 2006 2007 2008 2009 2010 2011 2012
Employment by Sector, LHS Share to GDP, RHSAgri share in
employment, LHS
Agri share in GDP, RHS
Source: FAOSTAT
Labour Productivity in Agriculture,Selected ASEAN Countries (1980-2011)
Importance of Agriculture in GDPand employment (%)
Agriculture will remain a priority sector
14
Simplifying labor regulation and address skills mism atch
15
Climate Change Adaptation & Disaster Risk Reduction Management
CCA & DRRM
• Climate change-resilient infrastructure
• Disaster preparedness
• Use of technology
16
Transparency
Accountability
Address inefficiency Minimize
corruption
Good governance will continue to be the platform of public administration
17
Consistency of Policies
Alignment of plans and policies
Efficiency of regulation
Institutional ReformsWith focus on enhancing responsiveness and reducing inefficiencies
18
Monetary, External and Financial Sectors
Governor Amando M. Tetangco, Jr.
Bangko Sentral ng Pilipinas
1919
Outline
I. 2012 Performance/Achievements
II. 2013 Economic Outlook
III. BSP’s Policy Directions
20
Policy/reform milestone and their impact
Policy Impact
Monetary Sector
� Reduced policy interest rates by a cumulative of 100 basis points to 3.5 percent from 4.5 percent for the RRP (borrowing) rate and to 5.5 percent from 6.5 percent for the RP (lending) rate
� Implemented operational adjustments in reserve requirements (RR) policy and the Special Deposit Account (SDA) facility
� Price stability and non-inflationary growth
External Sector
� Maintained presence in foreign exchange market and built up GIR� Sustained improvement of external debt management� Adopted a number of macro prudential regulations, including the
increase in capital charge for non-deliverable forwards (NDF) positions and prescribed a cap on NDF exposure of banks
� Strong external position and stable exchange rate
Financial Sector
� Further enhanced the governance standards of BSP-supervised financial institutions (FIs) through crafting regulations that would strengthen individual banking, as follows:
� Emphasized the need for FIs’ Boards of Directors to exercise objective judgments and ensure a stronger system of checks and balances;
� Instituted revisions to compliance programs of banks to better counter bank reputational risks that erode public’s trust of the banks.
� Announced the adoption of Basel III capital adequacy rules for universal and commercial banks by 2014
� Efficient, sound, and competitive financial sector
21
Prudent monetary policy supported low inflation and robust output growth
Headline Inflation vs. TargetJan 2002 – Dec 2012 2006=100, in percent � Inflation environment continues
to be favorable
� Low lending rate encourages investment and consumption
0
2
4
6
8
10
12
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Headline Lower Bound of Target Upper Bound of Target
Dec 2012 = 2.9%
2012 Ave = 3.2%
0
2
4
6
8
10
12
2005 2006 2007 2008 2009 2010 2011 2012
RRP rate and Average lending rateJanuary 2005-Dec 2012, in percent
RRP Rate Average Bank lending Rate
RRP Rate and Average Lending RateJan 2005 – Dec 2012
in percent
Dec’12 = 5.7%
Dec’12 = 3.5%
22
Strong external position despite the challenging external environment
83.8bn
12.0
0
2
4
6
8
10
12
14
0
10
20
30
40
50
60
70
80
90
2004 2005 2006 2007 2008 2009 2010 2011 2012
GIR (lhs) Import Cover (rhs)
Total External Debt2004 – Q3 2012
45.0
50.0
55.0
60.0
65.0
2004 2005 2006 2007 2008 2009 2010 2011 Q320120
20
40
60
80
External debt in US$ bill ion (lhs) External debt as % of GDP (rhs)
%US$ billion
� BOP position remains in surplus
� Foreign exchange reserves continue to build-up
� External debt/GDP declines significantly
US$ billion months
Balance of Payments2004 – Dec 2012; in million US$
7.1bn
5.8bn
-5000
0
5000
10000
15000
20000
0
2000
4000
6000
8000
10000
2004 2005 2006 2007 2008 2009 2010 2011 2012CA (lhs) BOP (rhs)
US$ million US$ million
Gross International Reserves2004 – Dec 2012; in billion US$
23
61.7bn
25.6%
14.6 15.2 13.4 10.8 7.8 5.0 4.1 3.7 3.6 2.8 2.6
50.2 52.2 58.071.9 74.4 81.6 87.1 93.4 97.8 104.0
114.0
0
1500
3000
4500
0
30
60
90
120
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Oct'12
PHP bn
TLP, gross (RHS) NPL Ratio ( LHS) NPL Coverage Ratio (LHS)
Sound and stable banking system intermediated funds to productive ends
� Quality of loan portfolio continues to improve
Total Loans, Non-Performing Loans Ratio and Non-Performing Loans Coverage Ratio, 2002-Oct 2012
� Bank capitalization remains above regulatory standards and international norms
8
10
12
14
16
18
20
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar '12
%
CAR, Solo CAR, Consolidated Tier 1
BSP Regulatory Requirement of 10%
International Standard of 8%
24
Capital Adequacy Ratio, Philippine Banking System, 2002-2011
BSP’s performance
1. Prudent monetarypolicy
Inflation 3.2 percent 3.0-5.0 percent
2. Robust external position
Balance of Payments (BOP)
US$9.2 billion(Jan-Dec 2012) US$6.8 billion
Gross International Reserves (GIR)
US$83.8 billion(End-Dec 2012) US$ 83.0 billion
External Debt-to-GDP ratio 25.6 percent(Q3 2012)
(End 2011: 26.9 percent)Decreasing
3. Sound and stable financial system
Capital Adequacy Ratio (CAR), consolidated basis (UKBs)
18.0 percent(End-Mar 2012)
(End 2011: 17.7 percent)Increasing
Non-Performing Loans (NPL) ratio (UKBs)
2.0 percent(End-Oct 2012)
(End 2011: 2.4 percent)Decreasing
2012 Actual 2012 Target/Forecast
25
BSP continues to enhancecorporate governance
� Revised existing regulations on corporate governance in line with international bestpractices such as the “Principles for Enhancing Corporate Governance” issued bythe Basel Committee on Banking Supervision
� Approved the amendments to the guidelines strengthening BSP’s governancestandards to rationalize the definition/qualifications of an independent director andthe composition of the members of board-level committees
� Approved the amendment to the regulations on the confirmation of theelection/appointment of directors/officers of banks with a rank of senior vicepresident (SVP) and above to simplify the confirmation procedures
26
BSP actively pursues policies for inclusive financ e
Policy, Regulation and Supervision
� No. 1 in the world in microfinance regulatory environment (2009-2012)� Implemented the enhanced rules on true and transparent lending� Updated Anti-Money Laundering Rules and Regulations, Outsourcing Rules
� Widened range of products (i.e., microdeposits, microenterprise loan, housing microfinance, microinsurance, etc.)
Financial Education and Consumer Protection
� Established Economic and Financial Learning Centers (EFLC) in 23 branches� Institutionalized the Financial Consumers Affairs Group (FCAG) to provide avenue for
complaints resolution and redress.
Data and Measurement � Worked toward a systematic collection of financial inclusion data for informed policy-making
� Mapped out financial service access points:
o Banking offices went up by 19% to 9,015 in 2011 from 7,585 in 2011o ATM network accelerated by 175% to 10,658 in 2011 from 3,882 in 2001o Alternative access points (i.e., money changers, remittances agents, etc) increased to
over 26,000
Financial Inclusion Advocacy
� Sustained leadership in global financial inclusion initiatives� Continued work on sharing knowledge and experience in financial inclusion with
international peers
� Spearheaded the implementation of the Credit Surety Fund (CSF)- As of 2012, 26 CSFs in various provinces have been organized
� Ensured the smooth inflow of remittances through the use of PhilPass REMIT System- As of 2012, the total number of transactions reached 380,150 with corresponding
value of US$373.6 million since its implementation on 4 May 2010
27
State of financial inclusion in the Philippines
� Philippine banking system’s overallphysical network improved
Regional Growth in the number of Banking Offices and ATMs, 2009-2011
� The growth rate in the number ofbranches and ATMs from 2009 to2011 is noteworthy, especially insome regions in Mindanao.
Number of Banking Offices and ATMs, 2001-2011
28
2013 Economic Outlook
ActualActual ProjectionsProjections
20112011 20122012 20132013
Headline Inflation (%, 2006=100) 4.6 3.2 3.0 – 5.0 a/
Exports Growth (%) 1/ -6.4 7.9 (Jan-Sep) 10.0 a/
Imports Growth (%) 1/ 2.1 2.2 (Jan-Sep) 12.0 a/
OF Remittances 2/ Amount (US$ Bn)Growth Rate
20.17.2
19.4 (Jan-Nov)6.0
22.2 b/5.0 b/
Current Account (US$ Bn) 7.0 7.2 (Jan-Sep) 4.9 b/
Balance of Payments(US$ Bn) 10.2 9.2 (Jan-Dec) 3.0 b/
GIR (US$ Bn) 75.3 83.8 r/ 86.0 b/a/ Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 28 November 2012b/ Based on BSP projections as of 15 November 20121/ Based on Balance of Payments (BOP) concept.2/ Remittances coursed through banksr/ revised
29
Key risks to inflation
Downside risk:� Weak global economic prospects
� Sustained stability of the peso against the US dollar
Upside risks:� Pass-through of electricity rate hikes � Higher international food prices due to adverse weather conditions in major
producing countries
30
BSP Policy Directions
Monetary sector Financial sector External sector
� Explore further fine-tuning of monetary policy toolkit for the achievement of the BSP’s mandate of maintaining price and financial stability
� Sharpen economic surveillance of shifts in the domestic and global inflation dynamics, including any brewing asset price pressures.
� Continue to align local banking practices to international standards to make regulatory capital framework more risk-sensitive
� Strengthen further corporate governance framework and develop appropriate policies in support of improving bank operations and risk management
� Sustain its advocacies on microfinance, financial inclusion, consumer protection and financial education with greater vigor.
� Maintain market-determined exchange rate
� Keep comfortable level of reserves
� Continue to promote external debt sustainability
31
Fiscal Sector :Revenue Collection and Debt Management
Secretary Cesar V. Purisima
Department of Finance
32
Contents
I. National Government (NG) Fiscal Performance (January - November 2012)
II. Outlook for 2013
i. NG Fiscal Program
ii. NG Financing Program
iii. NG Debt
iv. General Government Debt
v. Consolidated Public Sector Financial Position
III. Policy Reforms and Plans/Projects for 2013
33
(in Billion Pesos)
Jan - NovFY 2012 2011 2012 %
GrowthProgram Actual Actual Variance
Total Revenues 1,560.6 1,249.8 1,408.6 158.8 12.7%
Tax Revenues 1,427.4 1,105.0 1,247.0 142.0 12.9%
BIR 1,066.1 849.5 969.3 119.8 14.1%BOC 347.1 243.0 264.3 21.4 8.8%
Other Offices 14.2 12.5 13.3 0.8 6.7%
Non-Tax Revenues 131.2 144.1 153.3 9.2 6.4%
o.w. BTr Income 61.8 72.2 80.0 7.7 10.7%
Fees & Charges 69.4 71.8 73.2 1.4 2.0%
Privatization 2.0 0.7 8.3 7.6 1034.5%
Expenditure 1,839.7 1,346.0 1,535.9 189.8 14.1%
Surplus/(Deficit) (279.1) (96.3) (127.3) (31.0) 32.3%
1st eleven months revenue collections at double digit g rowth
34
2011 2012 2013 Growth RateIn Billion Pesos Actual Emerging BESF1 (2013/2012)
Total Revenues 1,359.9 1,518.4 1,780.1 15.0%
Tax Revenues 1,202.1 1,351.4 1,651.3 19.0%
BIR 924.1 1,046.0 1,238.6 19.9%
BOC 265.1 291.4 397.3 16.7%
Other Offices 12.8 14.0 15.4 1.5%
Non-Tax Revenues 156.9 158.7 126.9 -14.3%
o.w. BTr Income 75.2 82.8 53.2 -30.3%
Fees and Charges 81.5 75.9 73.6 3.1%
Privatization 0.9 8.3 2.0 -75.9%
Expenditure 1,557.7 1,753.7 2,021.1 13.9%
Surplus/(Deficit) (197.8) (235.3) (241.0) 6.6%
% of GDP -2.0% -2.2% -2.0%
2013 Fiscal Program in line with medium term fiscal objectives
Source: Budget Expenditures and Sources of Financing (BESF) 2013, DBM1 Cash basis
35
20112011ActualActual
20122012ActualActual
20132013Program Program BESFBESF
Nominal GDP Growth (%) 8.1 8.6 11.5
Real GDP Growth (%) 3.9 6.6 6.0
Inflation (%) 4.8 3.2 3.0 – 5.0
Interest Rate (%) 2.4 2.11 3.0
Exchange Rate (P/$) 43.30 42.23 42.00
Imports (% growth) 9.5 1.01 12.0
Exports (% growth) -6.9 7.01 10.0
Dubai Oil Price ($/barrel) 106.20 108.93 90.00
Assumptions for the 2013 Fiscal Program
Source: BESF 2013, DBM1 Data as of Nov 2012
36
5666 65
8475
4434 35
1625
0
20
40
60
80
100
2009 2010 2011 Jan-Nov 2012 2013 Program
Domestic Foreign
NG Financing program will continue to focus on increasing domestic source of funds
Source: 1 BESF 2013, DBM
1
National Government Financing Program
%
37
4,396.6
4,718.2
5,358.85,213.1
54.8
52.4
40.0
45.0
50.0
55.0
60.0
4,000.0
4,500.0
5,000.0
5,500.0
6,000.0
2009 2010 2011 2012 2012 2013
P Billion % of GDP
Program 1
4,951.2
50.9
48.0
Program
49.5
NG Debt to GDP ratio will continue to improve
50.5
ActualJan-Sep
5,779.0
Source: 1 BESF 2013, DBM
National Government Debt-to-GDP
38
68.5
61.4
53.9 54.7 54.852.4 50.9 50.559.2
51.6
44.2 44.2 44.3 43.5 41.9 40.9
0
20
40
60
80
2005 2006 2007 2008 2009 2010 2011 Q3 2012
% to GDP
NG Debt
GG Debt
GG Debt/GDP lower than NG Debt/GDP ratio
General Government Debt/GDP vs. National Governmen t Debt/GDP
39
(241.4) (355.8) (178.7) (213.9)
-3.1
-4.0
-2.0-1.3
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
100.0
2009 2010 2011 2012 Prog 2013 Prog
% of GDPP Billion
-1.8
(158.3)
Consolidated Public Sector Financial Deficit to further decline
� Consolidated Public Sector Deficit as of end Sep 2012 declined to 0.7% of GDP or P54.7 billion
Consolidated Public Sector Deficit
40
Status of RATE, RATS & RIPS (as of January 17, 2013)
Run After Tax Evaders (RATE)
� 140 Cases filed
� Estimated tax liability of taxpayers : P44.27 BillionBIRBIR
Under the Aquino administration
Run After The Smugglers (RATS)
� 120 Cases filed
� Estimated tax liability of taxpayers : P52.55 Billion
BOCBOC
Lifestyle check under the Revenue Integrity Protection Service
(RIPS)
� 55 Cases filed (59 respondents) under the new administration
� A total of 129 Cases (172 respondents) from 2003 to Dec. 31, 2012
� 62 personnel suspended from office; 21dismissed from service
DOFDOF
41
� Fiscal Incentives Rationalization (FIR)
– Intended to remove redundant incentives to reduce the fiscal costs and ensure that incentives will be given only to those who need them.
– Status: Ongoing discussion (DOF, DTI, BOI) to come up with a consensus bill.
Policy Reforms
� Review of the fiscal regime of the mining sector
– As provided for under Section 4 of EO 79, new mineral agreements is suspended until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.
– Status: The Mining Industry Coordinating Council (MICC) is studying options for mining fiscal regime and revenue sharing.
42
� Invigorated Run After Tax Evaders (RATE)� Oplan Kandado� Re-engineering of other Business Processes� Electronic Official Registry Book (eORB)� Implementation of Internal Revenue Stamps Integrated System (IRSIS)
on the use of Secured Stamps for Cigarettes� Electronic Letter of Authority Monitoring System (eLAMS)� Electronic Certificate Authorizing Registration (eCAR)� Accounts Receivable Management System (ARMS)� Collection Reconciliation System� On-line System for Transfer Tax Transactions (eOSSTTT)� Geographic Information System (Metro Manila Zonal Values and eSales)� Electronic Tax Information Systems (eTIS) Project
Major Plans and Programs for 2013
Bureau of Internal Revenue
43
� Enhancement of eAccReg and eSales� Expansion of ISO Certification to other districts� Re-registration of Taxpayers thru Taxpayer Registration Information
Update (TRIU) Project� Asset Information Management (AIM-P) – TPI Matching of Amnesty
Returns� Interactive Forms� Centralization of Data Processing to the Regional Offices� Increase in Taxpayer Database� Exchange of Information (EOI) Program� Tax Ruling and Case Management System (TRCMS)� Mobile Revenue Collection Officers System (MRCOS)� Organizational and Management Development
Program/Rationalization Plan (RATPLAN)� Procurement, Payment, Inventory and Distribution Monitoring System
Major Plans and Programs for 2013
Bureau of Internal Revenue
44
� Integrate National Single Window (NSW) with Electronic to Mobile System (E2M) and Other Government Agencies automated permit/licensing systems
� Strengthen the selectivity system
� Rationalize the assignment of discretionary functions and tighten corresponding accountabilities
� Implement automated raw materials liquidation and bond management
� Empower internal controls
Major Plans and Programs for 2013
Bureau of Customs
45
Fiscal Sector:Expenditure Management and Procurement Reforms
Secretary Florencio B. Abad
Department of Budget and Management
46
Contents
I. Fiscal and Disbursement Performance (January-November 2012)
II. Progress in the Pursuit of Budget Reforms
III. Progress in Reforms of Good Governance and Anti-Corruption
IV. Fiscal Outlook for 2013
V. Policy Thrusts and Other Plans/Projects for 2013
VI. 2013 Budget for Mindanao
47
Revenue and Disbursement Performance, Jan-Nov 2012
year-on-year % of full-year program
P1,408.6 Bn 12.7 %
14.1 %
90.3 %
83.5 %
P127.3 Bn 45.6 %32.3 %Deficit
Revenues
Disbursements P1,535.9 Bn
48
Amount (Php bn)
%
REVENUES 1,249.8 1,408.6 158.8 12.7 90.3
DISBURSEMENTS 1,346.0 1,535.9 189.8 14.1 83.5
Current Operating Exp. 1,127.1 1,258.2 131.1 11.6 87.2 PS 449.2 496.1 46.9 10.4 84.7 MOOE 151.3 226.5 75.2 49.7 89.0 Subsidy 37.3 25.6 (11.7) (31.3) 80.7 Allotment to LGUs 210.4 200.4 (10.0) (4.8) 91.7 Interest Payments 251.5 282.3 30.8 12.3 88.9 Tax Expenditures 27.4 27.1 (0.3) (0.9) 79.3
Capital Outlays 201.9 248.7 46.8 23.2 66.5 Infra & Other CO 118.2 185.6 67.4 57.0 62.2 Equity 12.4 1.2 (11.2) (90.5) 56.3 Capital Transfers to LGUs 63.4 62.0 (1.4) (2.2) 86.9 CARP-LO Compensation 7.9 - (7.9) (100.0) -
Net Lending 17.0 29.0 12.0 70.5 126.0
SURPLUS/(DEFICIT) (96.3) (127.3) (31.0) 32.3 45.6
% of FY Program
ParticularsJan-Nov 2011
(Php bn)Jan-Nov 2012
(Php bn)
2011 vs. 2012Increase/(Decrease)
Jan-Nov 2012 Disbursement Performance
49
FISCAL DISCIPLINEFISCAL DISCIPLINEALLOCATIVE EFFICIENCYALLOCATIVE EFFICIENCY
OPERATIONAL EFFECTIVENESSOPERATIONAL
EFFECTIVENESS
“SPENDING WITHIN MEANS”
“SPENDING ON THE RIGHT PRIORITIES”
“SPENDING WITH MAXIMUM
IMPACT”
PUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE MANAGEMENT
Objectives of Public Expenditure Management
Progress in the Pursuit of Budget Reforms
50
� Tighter Alignment of the Budget with Priorities– 2010: Sustained use of Zero-Based Budgeting to identify and eliminate inefficient and
ineffective programs and projects
– 2011: Alignment of the Budget with the five Key Result Areas (KRA) of President Aquino’s Social Contract with the Filipino People
– 2012: Introduction of Program Budgeting Approach to focus the Budget on identified priority programs per Social Contract KRA
– 2013: Budget Prioritization Framework
� Fast and Efficient Implementation of the Budget– 2010: Disaggregation of Lump-Sum Funds into specific programs and projects to
make budget execution faster and more transparent
– 2011: Early Bidding of Projects, stopping short of award, before enactment of National Budget to fast-track procurement
– 2011: Expansion of the Philippine Government Electronic Procurement Portal (PhilGEPS) to establish a Virtual Store with an Online Payment Facility
– 2012: Creation of Account Management Teams at the DBM
– 2013: Introduced policy for One-Year Validity of Appropriations to enhance funding predictability
Progress in the Pursuit of Budget Reforms
51
� Strengthening Performance Budgeting– 2011: Reviewed the Organizational Performance Indicator Framework to ensure that
agency outcomes and major final outputs are aligned with the Social Contract
– 2011: Started harmonizing all government performance management systems into a single Results-Based Performance Management System (RBPMS)
– 2012: Introduction of Performance-Based Incentive System to promote meritocracy and good public service delivery
� Transparency & Participation in the Budget– 2010: Formulation of government-Civil Service Organization (CSO) principle of
constructive engagement
– 2011: Introduction and enforcement of Budget provision on the mandatory disclosure by agencies of their respective budget information (Transparency Seal)
– 2011 : Start of Departments and GOCCs implementing Agency-CSO Budget Partnerships in budget preparation
– 2011: Use of technology to promote transparency: Priority Development Assistance Fund (PDAF) webpage, budgetngbayan.com
– Piloting of Bottom-Up Budgeting Approach in 595 municipalities which resulted in P8.4 billion in community-developed programs and projects
Progress in the Pursuit of Budget Reforms
52
Outputs:
Major Strategies:
1. Build-Up Credibility of
PFM
1. Build-Up Credibility of
PFM
Results-Based Budgeting
Treasury Single Account
Gov’t Integrated Financial Mgt Info System
Public Financial Management Reform Roadmap 2012-201 6Public Financial Management Reform Roadmap 2012-201 6
Better Mgt of Contingent
Liabilities
2. Review Fund
Release Procedures
2. Review Fund
Release Procedures
3. Capacity Building for Congress &
CSOs
3. Capacity Building for Congress &
CSOs
4. Improve Treasury Cash Mgt
Operations
4. Improve Treasury Cash Mgt
Operations
5. Develop and
Implement GIFMIS
5. Develop and
Implement GIFMIS
Progress in the Pursuit of Budget Reforms
PFM – Public Financial ManagementCSO – Civil Society OrganizationGIFMIS – Government Integrated Financial Management Information System
53
DBM as Secretariat to the Cabinet Cluster of Good Governance and Anti-Corruption
Good Governance and Anti Corruption Plan Framework
54
� Full Disclosure Policy for LGUs, DILG
� Participatory Audit, COA
� Empowerment Fund, DILG
� Streamline Business Permits and Licensing System, DTI/DILG
� Strengthening Internal Control Systems in Government, DBM
� National Justice Information System, DOJ
� Registry System of Basic Sectors in Agriculture, DBM
� Revenue Integrity Protection Service (RIPS), Run After Tax Evaders (RATE) and Run After the Smugglers (RATS), DOF
Select Transparency, Accountability, and Citizens’ Engagement Initiatives
55
2012 Adjusted Prog 2013
CURRENT OPERATING EXPENDITURES 1,464.5 1,599.0 79.7 9.2
Personal Services 593.5 640.6 31.9 7.9MOOE 266.6 312.9 15.6 17.4Subsidy 19.7 42.9 2.1 117.7Allotment to LGUs 218.6 241.8 12.1 10.6Interest Payments 333.1 333.9 16.6 0.2Tax Expenditure Fund 33.0 26.9 1.3 -18.5
CAPITAL OUTLAYS 328.3 380.4 19.0 15.9
Infra. and Other CO 252.4 297.1 14.8 17.7Equity 2.1 2.0 0.1 -3.7Capital Transfers to LGUs 71.3 76.3 3.8 7.0CARP LO Compensation 2.5 5.0 0.2 100.0
NET LENDING 23.0 26.5 1.3 15.2
TOTAL 1,816.0 2,005.9 100.0 10.5
PARTICULARS% Share
2013
Levels (Php Billion)Growth
(%)
2013 Disbursement Program ( Obligation Basis)
Source: General Appropriations Act 2013
56
� Revenue outlook at 14.7% of GDP, Disbursements at 16.7% of GDP, Debt at 48% of GDP� Government consumption to register double digit growth due to expansion of the
Conditional Cash Transfer (CCT) program, routine maintenance of public infrastructure, implementation of PAMANA, as well as the Expanded Government Internship Program.
– Pantawid Pamilyang Pilipino Program of DSWD– Priority projects in health sector geared to attain the Millenium Development Goals
(MDGs), such as doctors to the barrios, expanded immunization, TB control programs
– Creation of teaching positions to close the teacher gap
– Peace building and development in conflict-affected areas� Growth in capital outlays of 35.7% to P413.2 billion (cash basis), or 3.5% of GDP, which
translates to increased allocations for:
– DPWH infra projects– DA-NIA irrigation facilities
– Farm-to-market roads
– Infrastructure support to tourism, education (Basic Education Facilities Fund), and health (Health Facilities Enhancement Program)
Fiscal Outlook for 2013
57
699.434.9%
509.225.4%
360.418.0%
347.317.3%
89.54.5%
2013 GAASocial Services
Economic Services
Debt Burden
General Public Services
Defense
Sectoral Allocation of National Government Expendit ures
613.433.8%
439.024.2%
356.119.6%
320.317.6%
87.24.8%
2012 GAA
General Appropriations Act
(in Php billion)
58
Regional Per Capita Allocation, FY 2013
Particulars
2013Regionalized
Budget Population
In Php BillionAmount (in Php)
Rank
Total 996.23 99,240,310 10,038 NCR 131.22 12,194,394 10,761 2Luzon 410.47 43,306,613 9,478 3Visayas 194.88 20,114,242 9,689 2Mindanao 259.66 23,625,061 10,990 1
Allocation Per Capita
Allocation Per Capita, 2012 Allocation Per Capita, 2013
in Php in Php
59
Policy Thrusts and Other Plans/Projects for 2013
� One-year validity of MOOE and CO appropriations to encourage agencies to plan ahead and to minimize the gap between fiscal program and the obligation budget.
� Allowance of pre-procurement activities immediately after submission of the budget to Congress to facilitate project implementation within the one-year validity period.
� Adoption of DPWH as principal infrastructure agency of government to accelerate completion of priority program targets in line with the Social Contract.
� Program Budgeting Approach in the creation of the budget, where the basic idea is that budget information and decision making should be structured according to the objectives of the government.
60
� Implementation of the Results-Based Performance Management System (RBPMS) and the Performance-Based Bonus (PBB) to push for better planning, programming and execution capacities in the agencies.
� Rolling out technological innovations to speed up budget release and procurement transaction, improve information flows and strengthen transparency and accountability:
– PhilGEPS ePayment facility
– Electronic payment through ATM of monthly pension of retired uniformed personnel
– Cashless Purchase Card– National Payroll System– Electronic and mobile banking for CCT beneficiaries– Single Treasury Account
Policy Thrusts and Other Plans/Projects for 2013
61
Trade, Industry and Investments
Secretary Gregory L. Domingo
Department of Trade and Industry
62
Contents
I. Enabling Business Environment for Global Competitiveness
� Improving PH Competitiveness
� Philippine Business Registry (PBR)
� Nationwide Streamlining of Business Permits and Licensing Systems
(BPLS) Program in the PH
� Conformance to International Standards
� Industry Development and Promotion
II. Improving Productivity
� Double Exports: Move Up the Value Chain
� Better Business Environment to Increase Investments
� Sustainable Employment through MSME Development
III. Ensuring Consumer Welfare and Protection
IV. Outlook for 2013
V. Policy Thrusts and Other Plans for 2013
VI. Harnessing the Potential of Mindanao as a Viable Investment Proposition
63
� DTI and DILG set a unif ied form for permit and licensing in all cities &municipalities and reduced the follow ing:
− Steps to 5 or less
− Processing time to 10 days (new applications) and 5 days(renew als)
− No. of signatories to 5 or less� To expand reforms to all 1,634 municipalities
� 823 LGUs have undergone BPLS process re-engineering as ofDecember 2012
� Conducted streamlining trainings to1,004 LGUs
� MOA signed by DTI, DILG and DOST tow ards BPLS Automation (e-BPLS) to promote the use of ICT in business permitting processes
� Launched on 27 Jan 2012, w ith President Aquino as
guest of honor� 21,571 ow ners/clients registered in 2012
� Enables online registration of business names (DTI);allow s issuance/validation of BIR TIN, and EmployerRegistration Nos. (ERN) w ith SSS, PhilHealth, Pag-IBIG
� Launched PBR Kiosk, allow ing SEC-registeredcompanies to get SSS, PhilHealth and Pag-IBIG ERNs
� Reduced processing time from 4-5 days to 45 minutes
� Linked w ith BPLS of QC in Mar 2012. Connectivity ofValenzuela City LGU completed in Oct 2012, aw aitingSoft Launch. Other LGUs to follow
� Moving tow ards migrating PBR and BNRS in the cloudcomputing environment in 2013
Enabling Business Environment for Global Competitiv eness
Improving Philippine Competitiveness � Jumped 10 notches to 65th place in the WEF Global
Competit iveness Report 2012-2013, one of the fewcountries that improved drastically.
� Climbed to 61st from 77th in the World Economic Freedomreport released by Canada’s Fraser Institute, ranking 2nd only toSingapore in the ASEAN.
� Improved to 97th from 107th in The Heritage Foundation’s 2013 Index of Economic Freedom due to improvements on investmentfreedomand freedom from corruption and legislative reforms that enhance entrepreneurial development.
Business Permits & Licensing Systems (BPLS) Philippine Business Registry (PBR)
Business Name Registration System (BNRS)� 329,390 registrations for 2012
� Reduced BN registration processing time from 4-8 hours to 15 minutes
64
Enabling Business Environment for Global Competitiv eness
� PH Delisted from the list of Notorious Markets in December 20 12 after 6 years of being listed, putting the PH closer tobeing removed from the US Trade Representative (USTR) Office’s Special 301 Watch List of economies with weakintellectual property regimes that could face US trade sanctions.
� Accreditation of Conformity Assessment Bodies . Accreditation is the independent evaluation of conformity assessmentbodies against recognized standards. In 2012, the Philippine Accreditation Office (PAO) accredited 23 testing andcalibration laboratories against ISO/IEC17025, conducted 101 surveillance visits to ensure corrective actions have beenimplemented on nonconformities, held 63 special assessments, and conducted 5 office-based assessments and 31 witnessaudits to ensure confidence in the conformity assessmentcertificates issued by certification bodies.
� Trade Remedy Measures and Trade Defense that impose safeguard measures to allow local industries to adjust tocompetition. In 2012, DTI, through the Bureau of Import Services (BIS), investigated 8 trade remedy cases (for productslike steel angle bars, testliner boards, clear float glass, tinted float glass, newsprint, wheat flour, galvanized iron and pre-painted galvanized iron) and monitored 9 trade defense cases of PH exporters facing trade remedy cases in foreignmarkets.
Conformance to International Standards
� Crafted 17 Industry Roadmaps in 2012 in line with the formulation of a comprehensive national industrial policy that shallspell outopportunities and promote the growth of forward & backward linkages in priority and high-potential growth sectors
� 2012 Investment Priorities Plan . 13 preferred economic activities: Agriculture/Agribusiness and Fishery, CreativeIndustries/Knowledge-based Services, Disaster Prevention, Mitigation & Recovery, Energy, Green Projects, Hospital andMedical Services Projects, Infrastructure and PPP Projects, Iron & Steel, Mass Housing, Motor Vehicles, R&D, Shipbuildingand Strategic Projects
Industry Development and Promotion
65
Double Exports: Move Up the Value ChainResilient, Strong and Effectively Diversified Expor ts
24 24 27 27 30 3129 22 31
2421
11 12 13 14 17 1921 16 20
2527
0%10%20%30%40%50%60%70%80%90%
100%
Electronics (US$B) Non-Electronics (US$B)
� PH’s 2012 Merchandise Export Performance Among TopPerforming :− FY 2012 exports expected to surpass the US$48.3 B and
US$51.5 B recorded in 2011 and 2010, respectively− Contributed to 11.3% grow th of Gross International Reserves of
US$83.8 B in 2012 vis US$75.3 B in 2011
� All Time High US$13 B Services Exports (Jan-Sep 2012) :− Remarkable 14.8% grow th over Jan-Sep 2011
� Net Exports:Main Contributor to 2012 GDP growth
� Improving Electronics w ith 13.33% y-o-y growth in November2012
� Robust growth of non-electronics exports continues, lesse ningdependence on electronics-basedproducts− Machinery and transport inc. shipbuilding ↑86.09%, Auto parts
↑32%, Fruits and vegetables ↑17.5%, Seafood ↑17%− Products that exceeded US$2 B mark: food products w ith
US$2.61 B and ↑10.6%; construction materials, ↑24.24%− Coco Water sales 100.34% over the targeted exports sales
reaching US$120.41 M
� Markets Shifting− The shift is a result of the combined effects of increased
consumer incomes in the larger populations of developing Asiaeconomies w ith increasing middle income earners w ith evolvingtastes and preferences, as well as changes in the general globalsupply chain propelled by Free Trade Agreements (FTAs).
PH Export Markets
Jan-Nov 2012(US$M)
% Share
FY 2002
% Share
TOTAL PH 48,026 100.00 35,208 100.00
1. Japan 9,168 19.09 5,295 15.04
2. USA 6,893 14.35 8,683 24.66
3. China 5,743 11.96 1,356 3.85
4. Singapore 4,524 9.42 2,472 7.02
5. Hong Kong 4,395 9.15 2,359 6.70
6. South Korea 2,602 5.42 1,339 3.80
7. Thailand 2,258 4.70 1,083 3.08
8. Germany 1,838 3.83 1,386 3.94
9. Taiwan 1,757 3.66 2,485 7.06
10. Netherlands 1,440 3.00 3,055 8.86
Products and Markets Diversified
Top Export Markets, 2002 and 2012 (Jan – Nov)
66
Double Exports: Move Up the Value ChainAggressive Export Promotion
� Enhanced Market Access− Jumped to 72nd from 92nd (out of 132) in World
Economic Forum’s 2012 Enabling TradeReport.PH ranks 14th under Market Access.
� Spreading the benefits of FTAs through 116Doing Business in Free Trade Areas (DBFTA)Sessions in 2012− Wider opportunities for 11,169 local business
persons due to knowledge of preferentialtrading arrangements made available by FreeTrade Agreements (FTAs).
− PH utilization rate of ASEAN-Australia-NewZealand Free Trade Agreement (AANZFTA) up76.1% in 2011 from 64.2% in 2010 and higherthan that of the other ASEAN economies.
− PH has existing FTAs with theASEAN, Japan, Korea, China, India, Australiaand New Zealand. FTAs give manufacturers ofPH goods ready access and preferential tariffrates in the markets of the country’s tradingpartners.
2012 Export Promotion Activ ities
Type of Activity Number of
Activities
Export Sales
(US$M)
Companies Assisted
Trade Inquiries/
Buyers
Signature Event (Manila FAME)
2 49.87 570 7,503
Overseas Trade Fair 18 134.72 174 7,360
Outbound Business Matching
12 49.00 189 945
Inbound Business Matching
15 8.10 350 400
Total 47 241.69 1,283 16,208
� In 2012, Philippine Trade and Investment Centers (PTICs)overseas secured 1,069 new importers for PH products ,served 2,729 export opportunities, assisted 10,853 PHexporters and businesses and sent919 buyers to the PH.
� 303 new export suppliers nationwide have beenidentif ied through 20 hand holding sessions under theRegional Interactive Platform for Philippine Exporters(RIPPLES).
� Focused Strategic Promotional Activit ies resulted toover US$241 M incremental export sales in 2012.
67
Better Business Environment to Increase InvestmentsIncreasing BOI-PEZA Approved Investments
BOI-PEZA Approved Investments(in PhP Billion)
443.1
299.5
506.5
657.3 672.3
2008 2009 2010 2011 2012
� Total BOI-PEZA approved investments amounted to PhP672.3 billion (US$15.9 billion), which is 2.3% higher than 2011.
� 134,489 jobs to be generated
� Top 5 Sectors: Manufacturing; Electricity, Gas, Steam & Air Conditioning Supply; Real Estate Activities; Transportation & Storage; and Accommodation & Food Service Activities
� Top 5 Foreign Sources: Netherlands, Japan, US, Singapore and Korea
� Big ticket projects from: Masinloc Power Partners Co., Ltd.; Shell Gas and Energy Philippines Corporation; Therma Visayas, Inc.; Southwest Luzon Power Generation Corporation; Philippine Long Distance Telephone Company, Inc.; Semirara Mining Corporation; South Luzon Thermal Energy Corporation; SM Prime Holdings, Inc.; Palm Concepcion Power Corporation; and Toledo Power Company
Project Cost
2012 PerformanceBOI-PEZA Approved InvestmentsContinue to grow from 2008-2012
68
All-time High Record of Inbound Investment Missions in 2012� Influx of foreign investor visits to PH manifesting strong confidence on the domestic business climate� DTI through BOI, facilitated the inbound missions of 509 companies/organizations, which is 64% higher than 2011. Notable
is the 106% increase in the number of business delegations (multi-company) that visited the country (33 delegations from 16 in 2011).
� Interest coming from non-traditional markets in Europe (i.e., Russia and Turkey); Middle East (i.e., Oman, Iran, Qatar, Kuwait, Abu Dhabi); and Africa (i.e., Nigeria) is a positive development.
� Many companies from various countries, such as Sweden, Hong Kong, Israel, Turkey have expressed interest in investing in the country, covering various sectors such as telecommunications, BPO, manufacturing, agribusiness, aircraft, electronics, among others.
Company-Directed Outbound Investment Missions to St rategic Markets� Resulted in meeting many companies that conducted subsequent inbound visits to the PH.� Conducted 15 company-directed outbound missions to the following countries: Singapore (3); Taiwan (2); Korea (2); Japan
(1); Hongkong (1); China (1); Malaysia (1); Australia (1); Italy (1); Middle East (1); and Cambodia (1).
PH as Preferred Investment Site� PH's improving cost competitiveness has made the country a preferred investment site. � Ten (10) foreign firms, with a combined estimate of PhP16.7 billion (US$0.40 billion) worth of investments, have
migrated to the country from neighboring Asian countries. Half of these new investments came from Japanese investors. The migrant companies that have established operations in the country are:
1) Murata Manufacturing Co., Ltd. 6) New Kinpo/Cal-Comp Electronics2) Luen Thai 7) Superi3) Canon Business Machine (Phils.) Inc. 8) Fashion Focus4) Charoen Pokphand Foods Philippines 9) Leader Electronics5) Molex Integrated Products Philippines 10) Shang-hai Zephyr International
Growing Investments
69
� Assisted 5,894 microenterprises (MEs) in 2012 throughthe Rural Microenterprise Promotion Program (RuMEPP)bringing the total number of MEs served to 12,454 or 83%of the targeted 15,000 for 2007-2013. The Program alsogenerated 7,373 jobs in 2012 increasing the cumulativeaccomplishment to 58,960 jobs.
� The Access of Small Enterprises to Sound LendingOpportunities (ASENSO), formerly known as the SMEUnified Lending Opportunities for National Growth(SULONG) released PhP271.55 billion to MSMEstranslating to 3.87 million jobs since its inception in 2004.For the period Jan-Dec 2012 (preliminary), the programreleased PhP29.34 billion to MSMEs and supported388,067 jobs
� Conducted 78 SME Caravans (training sessions)nationwide benefitting 18,749 participants
� Assisted 193 enterprises graduating to the marketreadiness stage
� Developed 937 new MSMEs for 11,237 farmerbeneficiaries through the DTI-Comprehensive AgrarianReform Program (DTI-CARP) (Jan-Dec)
� Assisted 799 Agrarian Reform Communities and 171 othercommunities, generating PhP1,127 million totalinvestments,PhP2,409 million sales and 68,498 jobs
Targets Actual
a. No. of SMEs assisted
70,073 74,910
b. Jobs generated 508,975 577,553
c. Sales
• Domestic PhP 13.958 B PhP 16.037 B
• Exports US$582.14 M US$ 694.69 M
d. Financing
• ASENSO -PhP 29.34 B
(prelim)
• Micro-Enterprise Lending - PhP 27.7 B
e. Investments Generated
PhP 83.466 B PhP 97.301 B
Sustainable Employment through MSME Development
Source: DTI – Regional Operations and Development Group
MSME Sector Accomplishments 2012
70
� Created 1,427 new MSMEs and assisted 3,740existing MSMEs through the Nationwide IndustryCluster Capacity Enhancement Program(NICCEP) since its launch in May 2012. Thesenew MSMEs invested PhP4.760 billion, created97,243 jobs and generated PhP5.499 billiondomestic sales and US$1.051 billion worth ofexport sales.
� NICCEP aims to enhance the capacity of selectedindustry clusters throughout the country toplan, implement, facilitate service delivery, evaluateprojects, and improve industry competitiveness andimprovement in the business environment.
- (Industry clusters:abaca, bamboo, banana, cacao, coconut/cococoir, coffee, dairy, finejewelry, GDH, calamansi, meat (fresh andprocessed), metals &metalworks, milkfish, muscovado, organicfertilizer, pangasius, pineapple, processedfood, renewable energy, seaweed, veggienoodles, wearables & homestyles and wood)
Investments PhP 4.760 B
Jobs created 97,243
Domestic Sales PhP 5.499 B
Exports Sales US$ 1.051 B
MSMEs Created 1,427
MSMEs Ass isted 3,740
No. of Tra inings Conducted 479
No. of Beneficiaries Trained 10,777
Amount of Loans Facilitated PhP 167 M
Sustainable Employment through MSME Development
Source: DTI – Regional Operations and Development Group
Performance of NICCEP, 2012
71
Policy Thrusts and Plans/Projects for 2013
Big Push for SMEs
� Adoption of a 3-year program to promote anddevelop industry clusters to make SMEs in theindustry and service sectors globally competitive.
Components:- Product Development & Market Promotion- Equitable Financing/Credit Assistance - Shared Service Facilities- Micro-enterprise Development
� Shared Service Facilities (SSF) Project2013 Targets:- 1,000 Shared services facilities established- 12,000 jobs (direct)- 10,000 MSMEs assisted
� Industry Clusters
� SME Roving Academy
� Diskwento Caravan
� OTOP Store Marketplace
� Philippine Traceability for Revitalized AgriculturalCompetitiveness Enhancement (P-TRACE)Program
PDP Targets by
2016
MSME Sector
Accomplishments2012
a. Merchandise Exports US$ 91.5BUS$ 694.69 M
b. Services Exports US$ 28.9B
c. Approved Investments US$ 3,796.47B
PhP 97.301 B
(Investments Generated)
d. Jobs Generated
• SMEs 2 M 577,553
Industry Cluster Development Targets, 2013
� Generate investments amounting to PhP6.792 billion
� Create about203,666 jobs
� Generate domestic sales ofPhP6.840 billion
� Earn exports of US$448.0 million
� Create about1,794 MSMEs and assist 6,349 MSMEs
� Conduct 572 trainings benefitting around 5,969 MSMEs/individuals
Sustainable Employment through MSME Development
Source: DTI – Regional Operations and Development Group
MSME Sector Performance vs. PDP Targets
72
Ensure Consumer Welfare and ProtectionStrengthened Enforcement Activities and Consumer Re sponsiveness
� DTI and DOTC signed Joint Administrative Order No. 1, Series of 2012 that enforces the Air Passenger Bill of Rights to educate airline passengers on their rights, and provide a level playing field among airline companies.
� Supported launch of Harinang Pinoy, a flour to be used specifically for the production of Pinoy tasty and Pinoy pan de sal. Use of Harinang Pinoy makes Pinoy Tasty P1/450gm cheaper than regular brand, and Pinoy pan de sal P0.50/10 packs cheaper
� 170,765 consumers benefitted from 240 Diskwento Caravans nationwide in 2012, generating PhP97.411M sales.
� Intensified weekly price monitoring of basic necessities and prime commodities
� Resolved 85% of consumer complaints in 2012 within the prescribed time of 7 working days for complaints resolved through mediation and 20 working days for complaints resolved through arbitration
� Monitored 133,269 establishments for compliance to Fair Trade Laws in Jan-Nov 2012. Of this, 431 were found not complying and 175 were penalized. Imposed fines accumulated to PhP1,658,217.
� DTI through the Philippine Shippers Bureau (PSB) revoked accreditation of an erring sea freight forwarding company and issued public advisory against unaccredited freight forwarding companies.
� 4 LPG dealers received DoE- DTI Bagwis Award in March 2012
73
Ensure Consumer Welfare and ProtectionStrengthened Enforcement Activities and Consumer Re sponsiveness
� Issued 65 new PS license/certificates issued and 1,600 Import Commodity Clearance (ICC) certificates for critical consumer products, e.g., electronics, motorcycle helmets as of December 2012. (preliminary report)
� Regulation of Importation of Used Motor Vehicles. Issued 2,384 Certificates of Authority to Import covering 15,751 units in 2012
� Accredited 13 truck rebuilding centers in 2012
� Launched Manual for the Investigation and Prosecution of Intellectual Property Cases
� DTI Direct Call Center attended to 53,381 calls in 2012, the bulk of which or 46% were about business name and 33% on consumer welfare concerns
� DTI Public Assistance Desk (PAD) attended to 12,707 clients in 2012, 81% of which were about business name and 10% on consumer welfare matters
� 57.25% ave. consumer welfare index in the Pulse Asia Survey 2012 showing high level of consumer awareness towards basic consumer rights
74
Double Exports: Move Up the Value ChainExport Targets and Outlook
Actual Targets
2011 2012 2012 2013 2014 2015 2016
Value (US$B)
Growth Rate (%)
US$B GR US$B GR US$B GR US$B GR US$B GR US$B GR
Total Merchandise
48.30 -6.2 48.03 (Jan-Nov)
7.0 53.13 10 61.10 15 70.26 15 80.80 15 92.92 15
Total Services
15.45 9.6 13.04 (Jan-Sep)
14.8 17.77 15 20.43 15 22.48 10 24.72 10 27.20 10
TOTAL EXPORTS
63.75 -1.69 61.06 (Jan-Sep)
9.5 70.90 11 81.53 15 92.74 14 105.52 14 120.12 14
OUTLOOK FOR 2013� Bright prospects for electronics exports as new investments and expansions will operate in 2013
� Exports to be boosted by investment-driven projects
� Strengthening of the peso compels industries to improve competiveness in non-price dimensions suchas innovation and differentiation, branding and positioning, production processes and value-enhancedafter-sales service
� Wider access of higher-valued Philippine products and services to high growth economies such asEast Asia, Brazil, Russia, India, Middle East, Turkey and South Africa
75
Investment Outlook for 2013
• Very positive outlook for 2013. The realization of investment projects of many foreign investorsapproved in 2012 is highly expected. These include projects in sectors such as manufacturing andIT/BPO/Creative industries that thrive on the utilization of our skilled Filipino labor.
• Numerous investor queries and requests for assistance in the conduct of due diligence visits thisearly part of the year are expected to increase the number of inbound missions. Foreign posts arevigorously pursuing the conduct of inbound visits this year.
• To sustain growing investors’ confidence, promotion efforts to traditional markets (Japan, Korea,Taiwan, China and US) will be intensified while strategically reaching out to developmentalmarkets with strong potential for outward investments (Russia, Brazil Middle East, among others).
• Implementation of the industry roadmaps will result in the conduct of more focused investmentpromotion campaigns that will identify investment areas to complete the supply chain.
• Successful governance reforms will result in an investment climate that will provide a level playingfield and best value for the investor ’s money.
76
� Banana- Davao region’s banana industry contributes about 75% of the total
exports of the region comprising.
� Mango- Fast grow ing industry in the Davao region w ith massive expansion
of mango farms and exports fresh and processed mangoes
� Coconut- The Cluster is diversifying coconut products to include food and
non-food dow nstream products, thereby strengthening theregion’s position as the top coconut producer in the country.
� Seaweed- Expansion of seaw eed farms in potential areas in the region
targeting small f isherfolks in the coastal areas
� Wood- The w ood industry involves the production of plantation species
for processing of construction materials, furniture and furnishings,woodw orks, pallets and boxes, and handicrafts for domestic andexport markets.
� Mining- Davao region has large amount of mineral deposits particularly
gold, silver and copper.
� Palm Oil- A sunrise industry in the CARAGA region w ith big companies and
individual grow ers now into oil palm production.
� Rubber- The region also boasts of its Rubber Industry w hich produces
and exports natural rubber in Asia. It envisions the country asone of the top 5 natural rubber producers in Asia by expandingdomestic and export market share by 25% in 5 years.
� Tuna- The industry aims not only to parade fresh and frozen tuna to
the local and foreign markets but hopes to maximizebusiness opportunities by adding more tuna value-addedenterprises in the region.
- With a revived access to the pockets of seas in the w esternand central Pacif ic Ocean, stakeholders could deliver moreresults to investment, employment and trade.
� Tourism- The Cluster promotes economically viable, socially acceptable,
culturally sensitive and environmental-friendly tourism projects.- Mindanao’s w inding coastlines and its lush and verdant forests
could open the gates for ecotourism in the area, therebycontributing to the country’s tourist arrivals.
� ICT- The industry is primarily driven by the grow th in the electronic
services or business process outsourcing which includesoftware development, animation, contact centers andtranscription.
Harnessing the Potentials of Mindanao
Development and promotion of industry clusters, such as :
A Viable Investment Proposition
77
Other Plans, Policies and Thrusts
�Strengthen direct trade and investment link (e.g., BIMP-EAGA Sub-Regional Cooperation)
�Improve agricultural marketing-logistics system in Minda nao(e.g., establishment of a Davao Food Terminal; Davao-GensanExport Corridor Strategy)
�Promote business/enterprise development through Industr yCluster & Value Chain Strategies w ith the objective of enhancingthe competitiveness of the priority industry clusters in Mindanao
�Provide Shared Service Facilities (includes provision of the keytechnology, skills and critical equipment and facilities)
�Promote & strengthen the existing 6 Agri-industrialEconomic Zones (PEZA) in Mindanao and develop 3 others inBukidnon, Davao & South Cotabato to attract investments
�Intensify promotion of Mindanao as Food Basket
�Recommend policies for the development of Mindanao (e.g.,EOs on the creation of industry development councils for banana,rubber, cococoir, etc.)
Harnessing the Potentials of Mindanao
� Community-based Enterprise Development to bepurposively pursued in the rural areas and barangays incollaboration with LGUs, DSWD, DOLE, DA and the LGUs.
� Credit guarantee to facilitate and ensure SMEs’ access tocommercial sources of finance and capital;
� Propose the creation of Mindanao Development Fund forpriority projects (off-grid mini hydro, etc.)
A Viable Investment Proposition
78
Agriculture Sector
Secretary Proceso J. Alcala
Department of Agriculture
79
Contents
I. Agriculture and Fisheries Performance
II. Assessment of the Sector’s Performance vis-a-visthe Philippine Development Plan Targets
III. FY 2012 DA Accomplishments
IV. Prospects for the Agriculture and Fisheries Sector in2013
V. FY 2013 DA Thrust and Priorities
VI. DA Thrust and Priorities for the Mindanao Region
80
The agriculture and fisheries (A&F) sector posted a 2.74% GVA growth for 2012.
Value(million PhP)
↑↑↑↑ 4.26%
Crops Livestock Poultry Fisher ies
↑↑↑↑ 1.1% ↑↑↑↑ 4.59%
↓↓↓↓ 0.68%
Source: NSCB, January 2013
Crops Subsector
• Palay: ↑ 8.05%
• Corn: ↑ 6.27%
• Pineapple: ↑ 7.06%
• Rubber : ↑ 4.60%
• Coconut : ↑ 3.89%
Livestock Subsector*
• Dairy: ↑ 12.16%
• Hog: ↑ 1.71%
Poultry Subsector*
• Chicken: ↑ 4.61%
• Duck Eggs: ↑ 5.52%
• Chicken Eggs: ↑ 4.37%
Fisheries Subsector*
• Aquaculture ↑ 2.85%
*output growths
Gross Value Added in Agriculture and Fisheries, 201 1-2012
Agriculture and Fisheries PerformanceJanuary to December 2012, at constant 2000 prices
81
2012 A&F Sector Performance
Indicators FY 2012 Targets
Accomplish-ments
1. GVA increased (in %, at 2000 constant prices)Agri & Fisheries SectorCropsLivestockPoultryFisheries
4.3-5.34.9-5.91.6-2.64.2-5.2
2.744.261.14.6
-.0.72. Rice Self-Sufficiency Ratio (%) 91..87 93.9*3. Stable Average Inflation Rates among Basic Food
Commodities (%)3.0-5.0 2.2
� The sector has registered a positive growth for the past two years. However, growths are below the plan
target of 4.3-5.3%;
� Fisheries subsector has experienced a decline due to rising cost of fuel and implementation of
conservation policies that drove down fish catch
� The Food Staples Self-Sufficiency Program is on track, with the country producing record harvests of palay
(unmilled rice) at 18.03 million metric tons
� Inflation rateson food for 2012 is down to 2.2%, with rates ranging only from 1.2% to 3.6%
*2011 Self-Sufficiency Ratio (SSR). 2012 SSR is yet to be released by BAS
The A&F sector has managed to sustain modest growth s for the past two years
PDP Chapter 4: 2012 Targets and Accomplishments
82
FY 2012 DA Accomplishments
Major Final Outputs (MFO)/Indicators FY 2012 Targets
CY 2012 Accomplishments Percentage
MFO 1.1 PRODUCTION SUPPORT SERVICES
Beneficiaries provided with production support services (e.g. seeds, planting materials, animals, fingerlings, etc)
Individuals 1,984,848 2,545,179 128.23 Groups 2,814 7,724 274.48
MFO 1.2 MARKET DEVELOPMENT SERVICES Marketing agreements consummated 247 304 123.08
MFO 1.3 CREDIT FACILITATION SERVICES
Individuals or groups assisted to access either credit, insurance, or guarantee
Individuals 32,981 31,103 94.31
Groups 202 186 92.08
DA Accomplishments for 2012
83
Major Final Outputs (MFO)/Indicators FY 2012 Targets
CY 2012 Accomplishments Percentage
MFO 1.4 IRRIGATION DEVELOPMENT SERVICES SSIPs installed and/or constructed 831 859 103.37
MFO 1.6 EXTENSION SUPPORT, EDUCATION, AND TRAINING SERVICES
Training and training-related events conducted 53,401 57,752 108.15
MFO 2.0 REGULATIONS, DEVELOPED, IMPLEMENTED, MONITORED, AND ENFORCED
Regulatory documents issued 2,199,638 2,596,494 118.04 Incidence of avian influenza and foot & mouth diseases 0% 0% 100.00
Regulatory documents (national single window system) issued at the prescribed time 80% 100% 125.00
DA Accomplishments for 2012
FY 2012 DA Accomplishments
84
Major Final Outputs (MFO)/Indicators FY 2012 Targets
CY 2012 Accomplishments Percentage
MFO 3.0 PLANS AND POLICIES DEVELOPED, MONITORED, AND EVALUATED
Programs, and projects endorsed/approved 183 168 91.80
Plans distributed (e.g. FSSP and AFMP) 164 159 96.95
Agri and fishery policies issued 388 454 117.01
DA Accomplishments for 2012
FY 2012 DA Accomplishments
85
PDP Targets for 2013
� Raise farmers and fishers incomes by 2% to 4% from 2012 level
� Achieve 100% rice self sufficiency by 2013
� Increase agriculture and fisheries GVA growth by 4.3% - 5.3% from 2012 level
� Increase the total value of agriculture exports by 10% from 2012 level
86
Pursuing the Goals of the Philippine Development Plan (PDP) 2011-2016
Towards a Competitive and Sustainable
Agriculture and Fisheries Sector
1. Improved food security and increased rural incomes;
2. Increased sector resilience to climate change impacts; and
3. Enhanced policy environment and governance.
87
Goal 1: Food security improved and incomes increase d
Philippine Food Staples Sufficiency Program (FSSP ) is geared towards the attainment of 100% rice self-sufficiency by end of 2013.
Strategies:� Frontload investments in irrigation, postharvest facilities and
mechanization� Focus on longer-term investments � Engage farmers associations/irrigators associations, LGUs
and the private sector proactively � Increase cropping intensity� Ensure accessibility and affordability of other food staples to
encourage the production and consumption of rice alternatives (demand management)
� Access to affordable working capital (hybrid and certified) and improved production technology
� Increase NFA procurement as incentive to farmers
88
� Promote the production of white corn and
cassava to ease the demand on rice
� Development of the yellow corn industry
for animal feed and potential export markets
� Encourage clustering approach to improve
productivity
Strategies:
Corn Livestock and Poultry
� Conservation and improvement of genetic materials
� Disease prevention, control, and eradication
� Establishment of postharvest facilities
� Explore and promote alternative nutrition technologies
� Pursue possible export opportunities
Goal 1: Food security improved and incomes increase d
89
� Revitalize our traditional export
commodities (e.g. coconut, sugar, abaca,
banana, pineapple)
� Open new markets for fruits and vegetables including organic produce
� Establish production, postharvest and
processing facilities
� Conduct R & D activities
Strategies:High-Value Crops Fisheries
� Regenerate marine resources through Coastal Resource Management and Aqua-silviculture projects
� Protect marine resources through effective enforcement of fishery laws
� Increase production through mariculture parks, hatcheries, and nurseries
� Conduct R & D activities along stages of the value chain
� Enhance food safety and product quality monitoring and management
Goal 1: Food security improved and incomes increase d
90
Goal 2: Increased sector resilience to climate chan ge impacts
Full integration of climate change (CC) adaptation measures across all functions,agencies, programs, plans of the DA.
Strategic Objectives:
1. To increase the adaptive capacity and productivitypotentials of agriculture and fisheries livelihood by modifyingcommodity combinations to better meet weather issues andnatural resource endowments;
2. To redefine or remap the Strategic Agriculture and FisheriesDevelopment Zones (SAFDZ) by including climate changevulnerabilities as part of mapping variables;
3. To redefine the agriculture development planningframework as a basis of agriculture development planning byincluding key factors/variables associated with climate change;
4. To develop a new framework and plan for the provision of“new” government agriculture services towards theaccelerated development of climate smart agriculture andfisheries industries.
91
DA Systems-Wide Climate Change Programs:
Mainstreaming climate change adaptation and mitigation initiatives in agriculture (AMIA)
Climate Information System
Philippine Adaptation and Mitigation in Agriculture Knowledge Toolbox
Climate-Smart Agriculture Infrastructure
Financing and Risk Transfer Instruments in Climate Change
Climate-Smart Agriculture and Fisheries Regulations
Climate-Smart Agriculture Extension System
Goal 2: Increased sector resilience to climate chan ge impacts
92
Goal 3: Enhanced policy environment and governance
National Convergence Initiatives
Harmonization of support services on the ground that should result in elimination of wasteful duplication,
better quality of services and wider coverage.
Strategies:
DA-DAR-DENR DA-DSWDDA-DPWH
� flood control and water impounding for irrigation
� cash-for-work in paddy construction, irrigation canal desilting and coconut
replanting and salt-making for coconut fertilization
93
Core Public Investments
� Irrigation
� Farm-to-market roads, fish ports, postharvest facilities
and equipment
� Trading Centers
� Research and development
� Regulatory and quarantine services
� High-quality genetic materials
� Crop, livestock and fisheries protection and disease
prevention programs
� Avian-flu free and FMD-free without vaccination status
� Soil and water conservation and management program
Through good governance and political will , we shall continue to rationalizegovernment support and investments on the following priorities:
94
DA Thrusts and Priorities for the Mindanao Region
A&F Sector Goal:
… A dynamic and sustainable agriculture and agribusiness
sector with world-class, socially and environmentally
responsible farms bringing about a progressive and
food-secure Mindanao…
In line with this, the DA will pursue interventions insupport to the Mindanao 2020 Strategies:�Improve and adopt farming and processingtechnologies for high value commercial crops, and aimfor more sustainable fishing industries�Further develop and promote the Halal industry�Improve investments in research, development, andextension�Intensify promotion of agriculture and fisheriescourses
Mindanao 2020:
95
Department of Tourism
Secretary Ramon Jimenez, Jr.
Tourism Sector
96
Contents
I. Awards and Citations
II. Actual Performance vs. Target
III. Marketing Initiatives for 2012
IV. Highlights of Accomplishments
V. Tourism Road Infrastructure Program
VI. Tourism Targets
97
Awards and Citations, 2012
Citations and Awards Organization
PH – Top 12 Hottest Destinations in 2013 Conde Nast Traveller
PH – One of the 15 Hottest Travel Destinations of 20 13 Travel+Leisure
PH – One of the 10 Best Regions to Travel in 2013 Lonely Planet
PH – One of the Travel Destinations in 2013 Buceadores (Spanish Magazine)
Boracay – Top Destination for Relaxation Agoda.com
Boracay – 2012 Best Island in the World Travel+Leisure
Boracay – Top Best Beach in Asia Trip Advisor
Tubbataha – CNN Travel’s 50 Best Dive Sites CNN World
Palawan – No. 4 Holiday Destination in Asia Smart Travel Asia
PH – Best Diving Destination Marine Diving Fair – Tokyo
Gold Award for Creative Theme Development Expo 2012 – Yeosu, Korea
PH - Best Outbound Tourist Destinations in China Oriental Morning Post (Consumer Poll)
98
0 500 1,000 1,500
Germany
UK
Malaysia
Hong Kong
Canada
Singapore
Australia
Taiwan
China
Japan
USA
Korea
2012 2011
International Visitor Arrivals
Visitor arrivals In thousands
Growth
Rate
11.5%
4.5%
9.9%
3.1%
19.1%
12.0%
7.6%
5.3%
5.9%
23.8%
8.4%
9.5%
3.5M
3.9M
4.3M
2010 2011 2012
3.5M4.3M
5.5M6.8M
8.2M
10.0M
2011 2012 2013 2014 2015 2016
Visitor Arrivals Arrivals by Year
Projected Arrivals
Actual Projected
99
2,428.72,236.0
2,490.22,994.0
3,817.84,864.0
6,391.4
8,297.7
10,774.6
2008 2009 2010 2011 2012 2013 2014 2015 2016
International Visitor Receipts
74.9 75.8 83.9 91.9 93.0
629.4 668.9 672.3738.7
893.6
2008 2009 2010 2011 2012
Average Daily Expenditure Tourist Per Capita
9.4
8.8
8.0 8.0
9.6
2008 2009 2010 2011 2012
CAGR = 5.2%CAGR = 5.2%
Visitor Receipts (In US$ Million) Visitor Expenditure (In US$)
Average Length of Stay (In Nights)
CAGR = cumulative average growth rate
100
0 175 350 525 700
Negros Oriental
Clark
Ilo ilo City
Boho l
Davao City
Cagayan de Oro City
Batangas
Albay
Baguio City
Puerto Princesa City
Lapu Lapu City
Cebu City
Boracay Island
Metro Manila
(Partial as of June 2012)
Domestic Travellers Foreign Travellers
23.4M25.0M
30.3M
37.5M
40.7M
2008 2009 2010 2011 2012
Domestic Travellers
37.5M
40.7M
44.7M47.1M
51.7M
56.1M
2011 2012 2013 2014 2015 2016
CAGR = 6.1%
CAGR = 10.6%
* Estimate* Estimate
Total Total
(in (in MnMn))
%%
of totalof total
974.4974.4 19.6%19.6%
702.8702.8 14.1%14.1%
613.3613.3 12.3%12.3%
396.3396.3 8.0%8.0%
359.3359.3 7.2%7.2%
339.0339.0 6.8%6.8%
290.8290.8 5.9%5.9%
281.2281.2 5.7%5.7%
200.1200.1 4.0%4.0%
184.4184.4 3.7%3.7%
171.8171.8 3.5%3.5%
152.4152.4 3.1%3.1%
151.5151.5 3.0%3.0%
150.1150.1 3.0%3.0%
Top Overnight Destinations Domestic Travelers by Year
Projected Domestic Travelers
101
Room Capacity, 2012
Destinations Available Room
Number of Establishments
Northern PH 71,804 2,248
NCR 31,790 320
Central Luzon 15,024 489
Other Regions 24,990 1,439
Central PH 61,978 3,220
Western Visayas 15,200 635
Central Visayas 27,447 1,306
Other Regions 19,331 1,279
Southern PH 28,922 1,405
Northern Mindanao 8,113 380
Southern Mindanao 9,613 404
Other Regions 11,196 621
Total PH 162,704 6,873
New Accommodation Facilities in 2012
Name Rooms
Fairmont Hotel and Raffles Suites 549
Quest Hotels & Conference Ctr Cebu 427
Calyx Center – Cebu 221
Bellevue Resort - Bohol 159
Tunes Hotel – Cebu 150
Luxent Hotel – Quezon City 116
Dohera Hotel – Cebu 100
Microtel Accropolis – Quezon City 84
Hotel Expansion Program in Select Destinations
Name Additional Rooms
Aklan (Boracay Island) 1,599
Bohol (Panglao Island) 1,250
Metro Manila 1,123
Cebu/ Lapu Lapu/ Mandaue 646
102
DOT Marketing Initiatives for 2012
� Participated in over 50 major travel fairs around the world including Asia-Pacific, Europe, North America and India and introduced “It’s More Fun in the Philippines”
� Organized over 70 familiarization tours for travel agents and media to help generate a higher level of awareness on the country
� Tapped new source markets such as Indonesia and Thailand
� Organized Philippine Tourism Sales Missions to provide a platform for business meetings between Philippine delegates and their foreign counterparts
103
Highlights of 2012 Accomplishments
� Issuance of 14-day visa-free entry for Indian Nationals holding American, Japanese, Australian,Canadian, Singapore, Schengen, and British (AJACSSUK) visa
� Approval by Congress of the bill eliminating the Common Carriers Tax
� Designation of the following tourism enterprise zones which will generate investments andemployment: Ciudad de Victoria (Bulacan), Resorts World Manila Queen’s Castle
� Implementation of the media plan for the Philippine Tourism Branding “It’s More Fun in thePhilippines”
� Signing of convergence program with the Department of Public Works and Highways
104
Tourism Road Infrastructure ProgramDOT-DPWH Convergence Program
1,390
7,920
12,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2011 2012 2013
In Million Pesos
� P12 million programmed for construction, improvement, rehabilitation,widening of local roads leading to tourist destinations
105
2013 2014 2015 2016
International Visitors (Million) 5.5 6.8 8.2 10.0
Inbound Receipts (Billionl Pesos) 205.4 269.6 350.4 455.0
Domestic Travelers (Million) 44.1 47.7 51.7 56.1
Domestic Receipts (Billion Pesos) 1,298.6 1,409.2 1,607.1 1,852.1
Total Visitor Receipts (Bilion Pesos) 1,504.0 1,679.1 1,957.5 2,307.1
% Share to GDP 6.7 7.0 7.8 8.7
Tourism Employment (Million) 4.9 5.4 6.3 7.4
% Share to National Employment 13.0 14.2 16.2 18.8
Tourism Targets
106
Energy Sector
Secretary Carlos Jericho L. Petilla
Department of Energy
107
Contents
I. 2012 Accomplishments
II. 2013 Policy Thrusts
III. 2013 Outlook
IV. Plans and Programs for Mindanao
108
Primary Energy Supply Mix
109
2012 *
� Consumed 40 million tons of oil equivalent (MTOE) with: o 60% energy self-sufficiencyo 41% share of renewable energy (RE)o 49% green energy (RE and natural gas)
Oil31%
Natural Gas
8%Coal20%
Hydro6%
Geothermal22%
Biomass
12%
Wind
0%
Solar
0%
Biofuels
1%
* preliminary
2011
� Consumed 42 million tons of oil equivalent (MTOE) with: o 57% energy self-sufficiencyo 39% share of renewable energy (RE)o 47% green energy (RE and natural gas)
Oil31%
Coal22%
Geothermal21%
Biomass12%
Natural Gas7% Hydro
6%
Biofuels1%
Solar/Wind0%
Household Electrification
110
� Provided 3,450 households (target beneficiaries) with electricity access underHousehold Electrification Program (HEP)
� Extended access to electricity to 6,257 sitios* (187,710 households) out of thetargeted 6,007 thru Sitio Electrification Program (SEP) .
Note: A sitio is comprised of 30 households on the average
Power Industry Reforms
111
Implementation of Targeted Power Industry Reforms
�Launched the Retail Competition and Open Access (RCOA) for competitivemarkets
• Transition period (26 December 2012 to 25 June 2013)• Full commercial operation (26 June 2013)
�Prepared Energy Roadmap for Mindanao• Included the implementation of Interim Mindanao Electricity Market (IMEM)
�NEDA Board approved Agus and Pulangi Rehabilitation Project
Renewable Energy (RE)
RE Resource Awarded Contracts in 2012
Capacity (in MW)
Biomass 7 44.26
Geothermal 8 1,176.68
Hydropower 53 1,002.740
Solar 27 272.26
Wind 6 70.00
TOTAL 101 2,565.94
Promoted the Use of Renewable Energy Resources
112
Target Number of Vehicles on Alternative Fuels
113
2012
Number of Vehicles
CNG Bus 61
Auto LPG 19,052
E-Vehicles 650
Biofuels Blending
Ethanol 10%
CME 2%
Promoted the Use of Alternative Fuels for Public Tr ansport
Energy Resource Development
114
Oil and Gas
�Fifteen (15) prospective areas were offered in the4th Philippine Energy Contracting Round (PECR) foroil and gas
�Twenty (20) bid proposals were received for 11target areas offered from local and internationalplayers
�There are existing 26 active service contracts (SCs)of which 22 are operated by 18 foreign companies
Coal
�Thirty-eight (38) prospective areas were offered inthe 4th PECR
�Received 69 proposals for 27 target areas offered
2013 Policy Thrusts
115
� Maintain 60% energy self-sufficiency
� Climate proof the energy system
o Vulnerability assessment
� Promote low-carbon future
o Expand energy labeling program and move towards standardization
o Roll out of electric vehicles (EVs)
o 30% by 2030 (alternative fuels)
� Promote and adopt smart technologies
� Facilitate implementation of strategic infrastructure
� Formulate Geographic Energy Plans
Outlook for 2013
116
� Energize 9,860 households* through the HEP and 4,982 sitiosunder SEP
� 783.7 MW to go online
o Luzon - 737.7-MW
o Visayas - 8.0-MW
o Mindanao - 38.0-MW
� Deploy 20,000 electric tricycles (E-trikes) from 2013-2014
� Deploy 200 Compressed Natural Gas (CNG) buses
� Need a minimum of PhP 49 Billion investment for infrastructure
Note:* Using matured RE technologies such as PV SHS, PV streetlights and micro-hydro systems
Required Investment in the Energy Sector (in Php Million)
2013 53,285.7
2014 280,733.7
2015 257,820.7
2016 182,098.4
Plans and Programs for Mindanao
117
� Establish Interim Mindanao ElectricityMarket (IMEM)
� Promote energy exploration anddevelopment
o Oil and Gas (areas in Mindanao offeredinclude those in Sulu Sea andCotabato)
o Coal (areas in Mindanao offered includeAgusan del Norte, MisamisOriental, Agusan del Sur, Surigao delSur, Compostela Valley, DavaoOriental, Lanao del Sur, Lanao delNorte, South Cotabato, SultanKudarat, Saranggani, Zamboanga delNorte and Zamboanga Sibugay)
� Completion of the Mindanao Energy Plan(MEP) by third quarter of 2013
CEPALCO’s 1-MW solar power plant in Cagayan de Oro City
Mindanao I and II power plants in Mt. Apo, North Cotabato
Agus and Pulangi hydropower plants (Lanao del Sur, Lanao del Norte, Iligan
City and Bukidnon)
118
� Promote and develop RE potentialso Geothermal - 290-MWo Hydropower - 1,412.54-MWo Solar - 22-MWo Ocean - 24-MW
� Explore opportunities for Liquefied Natural Gas (LNG)o World Bank (WB) study for a floating storage regasification unit (FSRU) in
Macajalar Bay, PHIVIDEC Industrial Authority in Tagoloan, Misamis Orientalo Petroleum National Brunei and PNOC forged an agreement for joint
implementation in Mindanao
� Private Sector Initiated Power Projectso Committed additional capacity for Mindanao - 615.5-MWo Indicative additional capacity for Mindanao - 527.0-MW
Plans and Programs for Mindanao
Transport and Flood Management Infrastructure
Secretary Rogelio L. Singson
Department of Public Works and Highways
119
Contents
I. Strategic Policies and Programs
II. 2010-2016 Target Outcomes
III. Public Private Partnership Program
IV. 2012 Performance Report
V. 2013 Budget/ Infrastructure Program
120
Survey of Enterprises on Sincerity in Fighting or P reventing Corruption in the Philippine Public Sector by Social Weather Stations (SWS)
- 21
- 65- 63
- 55
- 66- 66
+ 80
- 37- 27
- 3
- 15
+ 10
2005 2006 2007 2008 2009 20122005 2006 2007 2008 2009 2012
Office of the President Department of Public Works and Highways
121
by Social Weather Stations (SWS)
- 65
All Areas
- 71 - 71 - 70
- 56- 52
- 21
- 8
- 30
- 20
- 32- 36
- 24
- 30
NCR ANG CLB ILO CEB DAV CDO-I
Department of Public Works and Highways
Survey of Enterprises on Sincerity in Fighting or P reventing Corruption in the Philippine Public Sector
122
The Global Competitiveness Reportby World Economic Forum
Ranking of the Philippines significantly improved f rom no. 114 (2010-2011) to no. 87 (2012-2013)
Legend: 1 = extremely underdeveloped; 7 = extensive and efficient by international standards (Based on 144 Countries)
Quality of Roads
2010-2013
123
Condition of Philippine Road NetworkBased on 2012 Road Condition Data
Legend
Road Classification
National Arterial
National Secondary
Plan, Design, Construct and Maintain National Roads and Bridges and Flood Control Systems in Major and Principal Ri vers
215,088 kms Total Overall Road Network
31,598 kms Total National Road Length
0.72 km/sq. km Road Density
0.26 km/sq. km Paved Road Density
0.27 Overall Paved Road Ratio
0.80 Paved Road Ratio for Nat’l. Roads
Department of Public Works and Highways
Basic Mandate
124
DPWH Strategic Policies and Programs
Strategic Programs Key Reforms
Good Governance Reform and Anti-Corruption Program
� Reforms in public works processes promoting right project, right cost, right quality, and right-on-time implementation
� Competitive and transparent bidding have resulted in P12 Billion savings .� Promotional examination for Asst District Engineers & up
Better Quality and Safer National Roads and Bridges Programs
� Adopted new standards for concrete pavement thickness� Outsourced project inspection and quality assurance� Developed new construction design standards and specifications
Effective Flood Control Program
� River Basin Approach to Flood Management and Water Resource Utilization� Integrated Water Resource Management Approach in Coordination with DA, NIA,
DENR� Implement the Flood Management Master Plan for Metro Manila and surrounding
Areas
Strategic Convergence Program
� Support to designated Tourism Destinations based on the Tourism Master Plan� Support for access to major airports, seaports and RORO ports.� Prioritized CCT Beneficiaries for Labor Employment on DPWH Projects
Public Private Partnership Program
� Implement the High Standard Highway Master Plan for Metro Manila and 200km radius which identified priority expressways and high standard highways
� Develop long term road maintenance program for national roads and bridges� Implement PPP Bridge Program� Assist DepEd in developing PPP School Building Program
125
Key Results and Outcomes
Contract Package 1 Contract Package 2
Date of Bidding 2008 July 2010
ABC P1.447 Billion P 706.5 Million
Total Amount as Bid P 1.571 Billion (+)8.5% of ABC
P 543.3 Million (-)23.1% of ABC, Savings: P163.2 M il lion
Unit Cost P85.8 Million/Km P46.4 Million/Km
Length of Road 7.93 Kms 7.53 kms.
Original Implementation Schedule: January 2009-May 2011 May 2011-February 2013
Actual Implementation Schedule: January 2009-Nov. 2011 May 2011-Nov. 2012 (3 months ahead of schedule)
Plaridel By-Pass Project, Phase I (JICA PH-P236)
C-3 Road, G. Araneta Avenue/Quezon Avenue Interchan ge Project, Quezon City
Contractual Data
Date of Bidding November 2010
ABC P 534.6 Million
Total Amount as Bid P 430.0 Million (-)19.6% of ABCSavings: P 104.6 M il lion (against ABC), P264 M illio n (against the Allocation)
Scope of Work/Length: Depressed roadw ay (underpass) - of 440 lineal meters (lm), 330 lm - approaches
Original Implementation Schedule: June 2011-December 2012
Actual Implementation Schedule: June 2011-September 2012 (3 months ahead of schedule)
126
DPWH 2010-2016 Target Outcomes
NATIONAL ROAD 100% PAVED BY 2016
Road Upgrading/Gravel to Paved, Km.
NATIONAL ROAD 100% PAVED BY 2016
* Excludes the on-going upgrading road projects.
National Arterial and Secondary Road (31,242 Km.)
Nationwide
127
DOT-DPWH Tourism Infrastructure Program
* Includes the P5 Billion additional released for 2012
*
2011-2013 Tourism Infrastructure Program
Regional Breakdown (in Billion Pesos)
2011-2016 Tourism Infrastructure Program
(in Billion Pesos)
128
Proposed High Standard Highway (HSH) Network in Metro Manila and its 200km Sphere
Project Name Length (km) Proj. Cost
Tarlac-Pangasinan-La Union Expressway 88.15 P 12.73 B
Daang Hari-SLEx Link 4.00 P 2.01 B
ON-GOING CONSTRUCTION : 92.15 KMKM
Project Name Length (km) Proj. Cost
NAIA Expressway 7.15 P 15.52 B
NLEx-SLEx Connector Road (MPTDC) 13.53 P 25.56 B
CALA Expressway (Cavite and Laguna Side)
47.00 P 35.58 B
Central Luzon Link Expressway (CLLEx), Phase I
30.70 P 14.94 B
Southern Tagalog Arterial Road (STAR), Lipa City – Batangas City, Phase II
19.74 P 1.96 B
C-6 Expressway and Global Link (South Section)
59.50 P 44.59 B
C-6 Extension (Flood Control Dike Expressway)
42.60 P 42.38 B
Calamba-Los Ba ňos Expressway 15.50 P 10.38 B
PROPOSED (PRIORITY): 235.72 KM
129
Proposed HSH Network in Metro Cebu
Highly Urbanized Area:
� Extension of Cebu Coastal Road up to Liloan
� Construction of Cebu Hillside Road and its Connecto r Roads
� Flyover construction along Cebu North Road, Cebu South Roads and Coastal Road
Mactan Island:
� Improvement of Mactan Circumferential Road
� Widening of First Mandaue-Mactan Bridge and its ApproachRoads
� Construction of 3 rd Bridge and its Approach Road
Northern Area:
� Widening of Cebu North Road
� Construction of Cebu North Parallel Road
Southern Area:
� Widening of Cebu South Road from Naga to Carcar
� Construction of Cebu South Parallel Road
130
Proposed HSH Network in Tagum -Davao-Gen. Santos Corridor
Inter-City Transport Axes
� Davao-Tagum Transport Axis together with Davao-Tagum Parallel Transport Axis is formed
� Davao-Digos-General Santos Transport Axis together with Davao-General Santos Parallel Transport Axis
� Davao-Cagayan De Oro Transport Axis
Inter-City Transport Axes
� Davao City Diversion Road
� Second Diversion Road to be formed
� Mac Arthur Highway-E. Quirino Avenue
� Quimpo Blvd.-Quezon Blvd.-Leon Garcia Avenue-R. Castillo Avenue
� C.M. Recto Avenue-J.P. Laurel Avenue
� Ma-a Road
� D. Quinones Road-Dacudao Avenue
� General Santos City Circumferential Road
131
Boundary of Study Area and the River Basins
Based on river basins:Pasig-Marikina River Basin and Laguna Lake Basin.
Total area: 4,354 km 2
Total Population: 17.1 M635 km2
72 km2
69 km2169 km2
3280 km2
95 km2
15 km2
19 km2
Master Plan for Flood Management in Metro Manila an d Surrounding Areas
132
(1) Huge volume of water coming from Sierra Madre
(2) Drainage capacity constraints in core area of Metro Manila
(3) Low lying communities around Manila Bay & Laguna Lake
Three Major Flooding Occurrence:
133
Option-1: Image of Lakeshore Dike
with Road
Option-2: Image of Raising Lakeshore Land
with Road and Future Developments
Options for the Lakeshore Area from Taguig to Munti nlupa
134
DPWH Performance ReportAs of December 31, 2012
FY 2011 vs. FY 2012 Fund Utilization
(in Billion Pesos)
135
DPWH Capital Outlays (Projects) Based on GAA
+45%
Note: DPWH 2009 & 2010 Budget included P23 B & P26 B “Pork Barrel”, respectively.
FY 2012 vs. FY 2013 Budgets
(in Billion Pesos)
2005 - 2013
(in Billion Pesos)
136
FS/PDE – 1%, P1.68 B
ROW, Contractual Obligations – 3%, P3.80 B
PPP – 2%, P3.00 B
DPWH FY 2013 Capital Outlays (Projects) Based on GAA (In Billion Pesos)
Regional Allocation
Highways – 70%, P100.93 B *
Flood Control – 11%, P15.85 B
Water Supply/VIILP/Disaster Related/Others-2%, P2.18 B
Basic Education Facilities – 10%, P14.11 B
Health Facil ities – 2%, P2.79 B
P 144.34 B
* The P100.9 Billion allocated for Highways includes the P11.95 Billion for Tourism Infrastructure Projects
By Expenditure Type
137
Transport Infrastructure: Airports, Seaports and Mass Transport Systems
Sec. Joseph Emilio Aguinaldo Abaya
Department of Transportation and Communication
138
Contents
I. Actual Performance vs. Target (2012)
II. Performance in Other Key Areas
III. Performance vs. Philippine Development Plan Targets
IV. Outlook for 2013
V. Policy Thrusts and Other Plans/Projects for 2013
VI. Mindanao: Plans, Policy and Thrusts
139
I. Actual Performance vs. Target (2012)
Major Final Output Result
Policy/Plan Formulation
� Transport policies/plans formulated and implemented to ensure safe, reliable, responsive and viable transport services
45 actual v. 41 planned
Regulatory and Enforcement
� Percentage of transport conveyances registered within the prescribed standard processing time
• Land Transportation Office
• Maritime Industry Authority
� Compliance with safety and security standards
(Philippine Coast Guard and Toll Regulatory Board)
87% (actual) v. 85% (target)
84% (actual) v. 70% (target)
100% (actual) v. 100% (target)
Operations and Management (MRT-3)
� Reduce passenger unloading incidents due to train failure
� Number of round trips for the year not to go below 80,000
� Percentage increase in fareboxrevenues
292 (actual) v. 366 (target) incidents
81,052 roundtrips
12.24% (actual) v. 2.5% (target)
Infrastructure Development
• Percentage of projects awarded within scheduled time
• Percentage of savings derived from Approved Budget for Contract (ABC) over program amount
86% (actual) vs. 80.6% target
6.46% (actual) v. 5% target
140
II. Performance in Other Key Areas
New Measures Implemented
� Air Passenger Bill of Rights (DOTC/DTI Joint Administrative Order No. 1, s. 2012)
� Protects the rights of passengers by outlining the responsibilities of airlines to passengers:
• Right to be provided with accurate information before purchase
• Right to receive full value of the service purchased
• Right to compensation in cases of flight delay or cancellation, lost, delayed or damaged baggage
� Helmet Law (R.A. No. 10054, s. 2011)
� Mandates the use of protective helmets for motorcycle riders for their safety. Starting January 1, 2013, motorcycle drivers without helmets bearing the ICC seal will be apprehended and penalized.
141
III. 2012 Performance vs. Philippine Devt. Plan Ta rgets
PDP Target Supporting Projects
1. Establish an integrated and coordinated transport
network for passengers and cargo
� Project Planning for the Integrated Transport System
(Intermodal Bus Terminal Facility)
� Scoping activities for the Integrated Luzon Railways
(Luzon-wide Railway Project)
� Published for bidding the interoperable Automatic
Fare Collection System for transport systems
� Interconnect mass transport systems
� Keep mass transport convenient
2. Bolster tourism targets through the construction and
reinforcement of transport infrastructure
� Puerto Princesa Airport concept design ongoing
� Laguindingan Airport in final stages of construction
� Airport Improvement projects published for bidding
(Butuan Airport, Cotabato Airport, Dipolog Airport,
Pagadian Airport, Tacloban Airport)
� PPP Projects published for bidding (LRT1 Extension,
Mactan-Cebu Airport, interoperable Contactless
Automatic Fare Collection System for LRT and MRT)
� Develop airports
� Promote PPPs
142
IV. Outlook for 2013
CY 2013 Infrastructure Proposal
Locally-Funded
Projects
� Airports and Navigational Facilities
� Bicol International Airport Development Project
� Ports
� LRT Line 2 East Extension (to Masinag)
� DOTC Road Transport IT Infrastructure Project
� MRT 3 Operation and Maintenance (EDSA LRT III)
� Subsidy for Mass Transport (MRT 3)
� Transport Studies Fund
� DOTC - Executive Management Information Systems
� Project Development Funds for Public-Private Partnership Transport Infrastructure
Projects
• Mactan Cebu Airport Expansion
• Northern Integrated Bus Terminal System
• Southern Integrated Bus Terminal System (2 terminals)
• RORO Project
• Davao Sasa Port Project
143
IV. Outlook for 2013
CY 2013 Infrastructure Proposal
Foreign Assisted Projects
� Puerto Princesa Airport Development Project� New Bohol (Panglao) Airport Development Project� Bus Rapid Transit (BRT) System for Cebu City� Maritime Disaster Response Helicopter Acquisition Project� Multi-Role Response Vessel Acquisition Project� LRT Line 1 Cavite Extension
144
V. 2013 Policy Thrusts and Other Plans/Projects
2013 Policy Thrusts and Other Plans/Projects Supporting Projects
1. Establish an integrated and coordinated transport
network for passengers and cargo
� Additional commuter rail lines (e.g., LRT 1 Cavite
Extension, LRT 2 Masinag Extension, MRT 7)
� Integrated Transport System (ITS) North and South
terminals
� Bus Rapid Transit (BRT) lines (e.g., Cebu, Ortigas,
Makati)
� Pasig Ferry System
� Improvement of PNR commuter service
� Make mass transport available from origin to
destination
� Interconnect mass transport systems
� Keep mass transport convenient and cheap
� Coordinate transport planning with land use and
urban planning
� Push for approval of the National Transport Policy
2. Bolster tourism targets through the construction
and reinforcement of transport infrastructure
� Night-rating of 8 airports (Tuguegarao, Busuanga, Roxas,
Dumaguete, Dipolog, Ozamiz, Cotabato, and Butuan)
� Airports than can accommodate more passengers
(including international) and larger aircraft (e.g.,
Laguindingan, Mactan Cebu, New Bohol)
� Privatization of operations and maintenance of airports
(e.g., Mactan-Cebu, New Bohol)
� Develop airports
� Open secondary airports to international traffic
� Improve access to airports
� Promote PPPs
145
VI. Mindanao: Plans, Policy and Thrusts
Mindanao: Plans, Policy and Thrusts Action Plan
1. Improve transportation within and from
Mindanao to support growth of tourism,
agriculture and fishery sectors
� Improve port connections with other islands
� Provide infrastructure and logistics support
� Support domestic market access and
connectivity
� Airport build out and modernization
� Complete studies for the improvement of cargo movement and logistics (e.g., Davao Sasa Wharf)
� Revise regulatory and administrative requirements to lower logistics costs
146
Public-Private Partnership Program
Executive Director Cosette V. Canilao
Public-Private Partnership Center
147
Contents
I. Actual Performance vs. Target
II. Performance/ Accomplishments in Other Key Result Areas
III. Outlook for 2013
IV. Policy Thrusts and Other Plans/ Projects for 2013
V. Projects in Mindanao
148
PPP Targets vs. Actual PerformanceEight Projects Targeted and Successfully Rolled-out in 2012
PROJECTEST. COST (USD)
PPP STRUCTURE STATUS
PPP for School Infrastructure Project Phase I
389MBuild-Lease-Transfer (BLT)
Awarded to Private Sector Partners; Indicative Start of Construction on February 2013
NAIA Expressway Phase II 368.84MBuild-Transfer-Operate (BTO)
Bid submission on 26-Feb 2013; Indicative Start of Construction on December 2013
LRT Line 1 Cavite Extension and O&M
1.38B Contract-Add-Operate (CAO)
Bid submission on 27-May 2013;Indicative Start of Construction by mid 2014
Modernization of Philippine Orthopedic Center 132.56M
Build-Operate-Transfer (BOT)
Bid submission on 26-March 2013; Indicative Start of Construction on November 2013
Rehabilitation, O&M of Angat Hydro-Electric PowerplantAuxilliary Turbines 4 & 5
26.86MRehabilitate-Operate-Transfer (ROT)
Submission of Prequalification (PQ) documents set on 4-March 2013; Indicative Start of Construction on December 2013
Automatic Fare Collection System 41.86M
Build-Own-Operate (BOO)
PQ submission on 14-Feb 2013; Indicative Start of Installation on 4th quarter of 2013
PPP for School Infrastructure Project Phase II 312.86M
Build-Lease-Transfer (BLT)
PQ submission on 12-Feb 2013;Indicative Start of Construction on November 2013
Mactan Cebu International Airport Passenger Terminal Building
239MBuild-Rehabilitate-Operate-Transfer
PQ submission on 27-Feb 2013; Indicative Start of Construction on 2nd quarter 2014
149
� Capacity Building Program composed of PPP Core Courses, Knowledge Sharing Series and Learning Series – capacitated Implementing Agencies PPP Project Cycle and Processes
� Launched PPP Manual for local government units (LGUs)
� From 2011 todate, over 350 national agencies and local government units trained on basic PPP concepts and project preparation
PPP Performance in Other Key Result AreasCapacity Development and Enhanced Legal and Regulatory Framework
� Amended Implementing Rules and Regulations of the BOT Law (Revised BOT Law IRR)
� Issuance of Executive Order No. 78, or the Alternative Dispute Resolution
� Extension of the BSP Circular No. 700 on Single Borrower's Limit
� Policy Guidelines on Project Identification, Selection, and Prioritization
Capacity Building for Implementing Agencies and Local Government Units Enhanced Legal and Regulatory Framework
150
Outlook for 2013
� Seven projects on-going bidding and more projects in the pipeline to be awarded this year (e.g. NAIA Expressway Phase II, LRT Line 1 South Extension, Modernization of the Philippine Orthopedic Center, Rehabilitation, O&M of Angat Hydro-Electric Powerplant Auxilliary Turbines 4 & 5, Automated Fare Collection System, PPP for School Infrastructure Project Phase II, Mactan-Cebu Intl. Airport New Passenger Terminal Building)
� Sustaining the PPP momentum—systematic and coordinated pipeline development
� Maintaining PPP Center ’s balanced approach in project facilitation, and policy/regulatory framework monitoring and improvement
� Launching of the Knowledge Management (KM) Portal
� Ensuring PPP Center ’s staff sustainability
� Efficient management of contingent liabilities with a growing PPP portfolio
� Adequate monitoring and management of projects during development and delivery
PPP Outlook for 2013
151
Policy Thrusts and Other Projects for 2013Policy Enhancements, Improving Capacities and PPP Projects for 2013
� Amendments to the BOT Law (PPP Law)
� Amendments to Executive Order No. 8o Creation of the PPP Governing Board o PDMF to ensure effective monitoring
of PPP project implementation
� Policy Guidelines on Monitoring and Evaluation of PPP Projects, and Contract Management
� Sector Guidelines for DepEd, DOH, and DOTC PPP Projects
� Policy Briefs on Value for Money, and Optimizing PPP Center Interface with Departments’ PPP Units
� PPP Manual for national implementing agencies, including government-owned and controlled corporations
� Strengthen PPP enabling frameworks
� Institutionalize PPP best practices
� Establish long-term financing and risk guarantee mechanisms
Policy Enhancements Improving Capacities
152
� NLEX-SLEX Connector Road� Cavite-Laguna Expressway� Civil Registration System – Information Technology
Project Phase II� Vaccine Self-Sufficiency Project Phase II� Talisay City Plaza Complex Heritage Restoration and
Redevelopment Project � Enhanced O&M Panglao Airport� O&M of Laguindingan Airport� Establishment of Cold Chain Systems� Grains Central Project� O&M of LRT Line 2� O&M of Puerto Princesa Airport� New Centennial Water Supply� Rehabilitation of Quirino Highway Project� Integrated Transport System Project� Bulacan Bulk Water Supply Project� El Nido Water Supply and Sanitation System Project� Regional Prison Facilities through PPP
� Skyway Stage 3� MRT Line 7
Policy Thrusts and Other Projects for 2013Policy Enhancements, Improving Capacities and PPP Projects for 2013
� Plaridel Bypass Toll Road� Makati- Manila CCP Complex- Manila Bay City Area Mass
Transit System� Batangas-Manila (BatMan) 1 Natural Gas Pipeline Project� PhilHealth Information Technology Project� Tamugan Water Development Project� Bus Rapid Transit (BRT) – Ortigas Avenue Extension� Bus Rapid Transit – Quezon Avenue –Espana� C-6 Extension (Laguna de Bay Flood Control Dike
Expressway� Calamba – Los Banos Toll Expressway Project� Metro Cebu Expressway Project� Tagum-Davao-General Santos High Standard Highway� Central Luzon Link Expressway (CLLEX), Phase 2:
Cabanatuan-San Jose Section� Global City Mass Transit (Monorail System) Project� Improvement/Modernization of Kennon Road� Modernization of Region 1 Medical Center Project� Socialized Housing Project� Bayabas Small Reservoir Irrigation Project� Operation and Maintenance of Clark Airport� Manila Bay-Pasig River-Laguna Lake Ferry System� C-6 Expressway (South-East, East, and North Sections)� Manila Urban Renewal Project
PPP Projects in the Pipeline Projects under development
Other Projects Being Monitored by PPP Center
153
Awarded Projects | Live Bidding
(1) Daang Hari-SLEX Link Road Project (awarded)(2) PPP For School Infrastructure Project – Phase I(3) LRT Line 1 South Extension(4) NAIA Expressway Phase II(5) Modernization of the Philippine Orthopedic Center(6) Rehabilitation, O&M of Angat Hydro-Electric
PowerplantAuxilliaryTurbines 4 & 5(7) Automated Fare Collection System (8) Mactan-Cebu Intl. Airport New Passenger Terminal
Building(9) PPP for School Infrastructure Project Phase II
11
22
33
44
55
77
88
99
66
154
PPP Projects in the Pipeline
1. NLEX-SLEX Connector Road2. Cavite-Laguna Expressway3. Civil Registration System – Information
Technology Project Phase II4. Vaccine Self-Sufficiency Project Phase II5. Talisay City Plaza Complex Heritage
Restoration and Redevelopment Project 6. Enhanced O&M Panglao Airport7. O&M of Laguindingan Airport8. Estab lishment of Cold Chain Systems9. Grains Central Project10.O&M of LRT Line 211.O&M of Puerto Princesa Airport12.New Centennial Water Supply13.Rehabilitation of Quirino Highway Project14.Integrated Transport System Project15.Bulacan Bulk Water Supply Project16.El Nido Water Supply and Sanitation System
Project17.Regional Prison Facilities through PPP
11
2244
33
55
66
77
88
99
1010
1111
1212
1313
1414
1515
1616
1717
66
155
Projects covering areas in Mindanao
Operation and maintenance of the newly constructed international-standard airport in Laguindingan, Misamis Oriental.
The PSIP Phase II involves the designing, financing, and constructing of around 10,679 one-storey and two-storey classrooms, including furniture, fixtures and toilets, in 5,033 public schools in 14 regions nationwide.
The project will establish grains bulk handling systems with corn grains processing centers and transshipment stations in major corn producing areas and selected sea ports by upgrading, expanding and enhancing the existing operations in at least fifteen (15) corn postharvest processing and trading centers.
PPP for School Infrastructure Project (PSIP Phase I I)
Operation and Maintenance of the Laguindingan Airpo rt
Grains Central Project
156
157
Profiles of Speakers and Panel Discussants
Government of the Philippines
Amando M. Tetangco, Jr.BSP Governor and Chairman of the Monetary BoardBangko Sentral ng Pilipinas
Mr. Amando M. Tetangco, Jr. is the Governor of the Bangko Sentral ng Pilipinas (BSP). He was reappointed for a second termcommencing 4 July 2011. As BSP Governor, he serves as Chairman of the Monetary Board, the BSP’s principal monetarypolicy-makingbody.He is alsothe Chairman of the Anti-MoneyLaundering Council (AMLC).
A career central banker, Governor Tetangco has been in the service of the BSP for more than three decades. Prior to his firstappointment as Governor in July 2005, he was Deputy Governor in-charge of the Banking Services Sector, Economic Researchand Treasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington,D.C. from 1992 to 1994.
Governor Tetangco is involved in various organizations in the Philippines and overseas. Domestically, he is, among otherpositions held, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture CreditPolicy Council, member of the Capital Markets Development Council (CMDC) and the Export Development Council (EDC).Overseas, he represents the country in ASEAN Central Bank Forum, Executive Meeting of East Asia and Pacific (EMEAP)Central Banks, South East Asia Central Banks (SEACEN), South East Asia, New Zealand and Australia (SEANZA), and Centerfor Latin American Monetary Studies (CEMLA). In addition, he is the Governor for the Philippines in the International MonetaryFund (IMF) and the Alternate Governor in the World Bank (WB) and in the Asian DevelopmentBank (ADB).
Governor Tetangco studied economics and business administration at the Ateneo de Manila University. He finished his MA inPublic Policy and Administration with a concentration in Development Economics at the University of Wisconsin-Madison in theUnited States. He has attendedvarious training programs atdifferent institutions including the HarvardBusiness School.
158
Cesar V. PurisimaSecretaryDepartmentofFinance
Mr. Cesar V. Purisima was appointed Finance Secretary by President Benigno S. Aquino III in June 2010. He also briefly served as FinanceSecretary in 2005 and as Trade and Industry Secretary in 2004. In October 2012, Secretary Purisima was named Finance Minister of the Yearby Euromoney Magazine for his “careful and successful stewardship” of the local economy.
In 2011, he was also recognized by Emerging Markets Magazine as the Finance Minister of the Year for Asia for his strong policy track recordand steadfast commitment to maintaining economic stability. In addition, he w as Chairman of the Board of Governors for the 45th ADB AnnualMeeting held in Manila last May 2012.
His government service experience include serving as Chair of the Board of various government entities among them, the Land Bank of thePhilippines, National Pow er Corporation, and Philippine Deposit Insurance Corporation; and as Member of the Monetary Board of BangkoSentral ng Pilipinas.
Secretary Purisima has had extensive work experience in public accounting both here and abroad. He was Area Managing Partner as head ofthe Asia Pacif ic Assurance Practice of Andersen Worldw ide from 2001-2002, and was Regional Managing Partner as head of the ASEANoperation from 2000-2001. He was member of the Global Board of Andersen Worldw ide from 1999-2002 and the Global Executive Board ofErnst & Young from2002-2004.
He w as also Chairman and Managing Partner of SGV & Co until January 2004. Likew ise, he has been a member of various businessorganizations including the Management Association of the Philippines, Philippine Institute of Certif ied Public Accountants, Philippine-FranceBusiness Council, Philippine-Thailand Business Council and the Makati Business Club, among others.
Secretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial Institutions from De LaSalle University (1979) and his MBA from JL Kellogg Graduate School of Management, Northwestern University in Chicago, Illinois (1983). In1979, he w as among the top placers in the Philippine Board Examinations for Certif ied Public Accountants.
Government of the Philippines
159
Arsenio M. BalisacanSecretaryNational Economic and DevelopmentAuthority
Dr. Arsenio M. Balisacan is Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority (NEDA). Prior tohis appointment in NEDA, he was Dean and Professor of the University of the Philippines (UP) School of Economics and Executive Director of thePhilippine Center for Economic Development. He has taught Development Economics, Agricultural and Resource Economics, and Economics of Povertyand Inequality.
An Academician of the National Academy of Science and Technology and Adjunct Professor of the Australian National University, Secretary Balisacan isnow on secondment from UP. He also served as Director-Chief Executive of the Southeast Asian Regional Centre for Graduate Study and Research inAgriculture (SEARCA), an intergovernmental organization, for six years (2003-2009) wherein he led SEARCA gain stature in the academic world andbecome a regional center of excellence for agriculture and rural development in Southeast Asia.
In 2000-2001 and 2003, he was Undersecretary for Policy, Planning and Research of the Department of Agriculture (DA). As Undersecretary of DA, he wasthe country’s chief negotiator in the Agriculture Negotiations of the World Trade Organization (WTO) and in various bilateral agriculture negotiations. Beforejoining the UP faculty in 1987,he wasa Research Fellow at the East West Center in Honolulu and Economist at the World Bankin Washington,D.C.
A recognized expert in Asia on poverty, food security, agricultural and rural development, human development, impact asse ssment, and governanceissues, he served as adviser to public chief executives and legislators, non-government organizations, and multi lateral development institutions such as theWorld bank (WB), Asian Development Bank (ADB), various United Nations (UN) agencies and the Australian Centre for International Agricultural Research(ACIAR).
He has led leadership positions in professional associations. He served as President of the Philippine Economic Society in 2006, President of the HumanDevelopment Network in 2003-2009, Founding Secretary-General of the Asia-Pacific Agricultural Policy Forum in 2003-2006, and Executive Secretary ofthe Southeast Asian University Consortium for Graduate Education in Agriculture and Natural Resources in 2003-2009. Currently, he is President of theAsian Society of Agricultural Economists.
Dr. Balisacan holds a PhD in Economics from the University of Hawaii, an MS degree in Agricultural Economics from the University of the Philippines LosBañosand a BS degree in Agriculture (magna cumlaude) from Mariano MarcosState University.
Government of the Philippines
160
Florencio B. AbadSecretaryDepartmentofBudgetand Management
Mr. Florencio B. Abad was appointed by President Benigno Aquino III as Secretary of Budget and Management in July2010. He also served as Secretary of Agrarian Reform during the late President Corazon Aquino’s administration andserved as Secretary of Education under the Arroyo administration.
He was elected member of the House of Representatives in 1987 representing the Lone District of Batanes. He wassubsequently re-elected in 1995, 1998 and 2001. He became president of the Liberal Party of the Philippines from 1999to 2004 and is currently the Vice President for Policy and Platforms.
Secretary Abad finished his Bachelor of Science in Business Management, and Bachelor of Laws at the Ateneo deManila University and passed the Bar Examination in 1985. A fellow of the Edward Mason Program in Public Policy andManagement at the Kennedy School of Government in Harvard University in Cambridge, Massachusetts, he also holds aMasters in Public Administration degree.
Previously, Secretary Abad was a union organizer/trainer, research director of the Ateneo Center for Social Policy andPublic Affairs, and a legal and managementconsultant to different local and foreign foundations.
Government of the Philippines
161
Gregory L. DomingoSecretaryDepartmentofTrade and Industry
Mr. Gregory L. Domingo was appointed as Trade and Industry Secretary by President Benigno Aquino III in July 2010.He previously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and InvestmentsGroup (IIG) and Managing Head of the Board of Investments (BOI) from May 2001 to April 2004.
Prior to his stints with the government, he was President of Carmelray-JTCI Corp. (CJC) from July 1997 to November2000. He worked for Chase-Manhattan Bank in various capacities from July 1989 – July 1997 and with a number offinancial institutions in the United States (First Boston, Drexel Burnham Lambert and Mellon Bank) from 1982 to 1989.Secretary Domingo also served as Vice Chairman of Belle Corporation and director for SM Investments Corp., BDOPrivate Bank, PASUDECO, Manila Electric Corp., Pico de Loro Beach and Country Club, Wharton-Penn Club, andForeign Exchange Association of the Philippines. He was also a member of the Open Market Committee of the BankersAssociation of the Philippines (BAP).
Secretary Domingo obtained his Masters of Science in Operations Research at the Wharton School-University ofPennsylvania in 1982, finished his MBA with distinction at the Asian Institute of Management in 1980, and graduatedwith a bachelor’s degree in ManagementEngineering at the Ateneo de Manila University in 1976.
Government of the Philippines
162
Rogelio L. SingsonSecretaryDepartmentofPublic Works and Highways
Mr. Rogelio L. Singson, in leading the State's engineering and construction arm as its 42nd head, advocatestransformation and innovation in governance through transparency and accountability, doing the right project, for therightprice and the right quality, and undertaking more public-private partnership (PPP) projects.
Secretary Singson has extensive experience in both government and private sector in the field of privatization andpublic-private partnership, management of tollroads and expressways, water and power utilities privatization, airports,seaports and resorts. He was President and Chief Executive Officer of Maynilad Water Services, Inc. after its re-privatization from July 1, 2007 to June 30, 2010 under new owners, the DMCI-Metro Pacific Consortium. He also servedin various executive positions both in government and private entities to include the position of Chairman and PresidentofBases Conversion and DevelopmentAuthority
His other past involvements in the public sector includes serving as Executive Director of the Coordinating Council ofthe Philippine Assistance Program which coordinate and monitor the official development assistance project andprograms from May 1991 to November 1992; and Assistant Cabinet Secretary under the Office of the PresidentCorazon C.Aquino from July 1987 to May 1991.
Secretary Singson obtained his Bachelor of Science Degree in Industrial Engineering from the University of thePhilippines in 1971 and attended a Master's Program in Public & Business Management at the De La Salle University.He also attended various trainings abroad on PPP,privatization and Build Operate Transfer (BOT) Schemes.
Government of the Philippines
163
Joseph Emilio Aguinaldo AbayaSecretaryDepartmentofTransportation and Communications
Mr. Joseph Emilio Aguinaldo Abaya was appointed as Transportation and Communications Secretary by PresidentBenigno S. Aquino III on October 18, 2012, making him the 17th head of the department. Upon his assumption tooffice, Secretary Abaya was ordered by the President to continue intensifying the buildup of transportationinfrastructure in the country, in line with DOTC’s objective of providing the people with convenient, affordable, reliable,efficientand safe transport systems on land, sea and air.
Prior to his appointment, Secretary Abaya was a member of the House of Representatives, representing the 1st
District of Cavite for three consecutive terms beginning 2004. He chaired the Committee of Appropriations in the 15th
Congress.
Before joining public service, he was a Lieutenant Commander in the Philippine Navy, having earned this rank overthe course of 20 years on active duty. He started out as a naval officer aboard different vessels and was eventuallyassigned to the presidential yacht, BRP Ang Pangulo. Notably, he served as aide-de-camp of former PresidentCorazon Aquino,over two decades before her son would appointhim to his own official family.
Secretary Abaya obtained his Electrical Engineering degree from the University of the Philippines-Diliman andreceived citations as a University and College Scholar. After a year in UP, he then entered the Philippine MilitaryAcademy (PMA) and later on was sent to the US Naval Academy (USNA) in Annapolis, Maryland, where he earnedhis Bachelor's Degree in Mathematics. He also obtained his Master of Arts Degree in Electrical Engineering at CornellUniversity in Ithaca, New York. He received his Juris Doctorate from the Ateneo de Manila University School of Lawin 2005 and was admitted to the Philippine Bar in 2007.
Government of the Philippines
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Carlos Jericho L. PetillaSecretaryDepartmentofEnergy
Pr ior to his appointment as the Secretary of Energy in November 2012, Mr. Carlos Jer icho L. Petilla served as Governor of the Provinceof Leyte, Philippines since 2004.
As Governor, he focused on the provision of basic services by instituting various improvements in the province’s health care, education,and development infrastructures. His experience in information technology (IT) benefited Leyte through the improvement in governmentprocesses for better, more transparent and eff icient public service. These measures earned aw ards for Leyte, such as, “The Seal ofGood Housekeeping” (October 2011) and the “Gaw ad Pamana ng Lahi Aw ard” (October 2011) from the Department of Interior andLocal Government; “Most Business Friendly LGU Aw ard” (2011, 2010, 2008) from the Philippine Chamber of Commerce and Industry;and the “Hall of Fame - The Hospital Enhancement for Leyte’s Progress (HELP) Project” (2011) and “Hall of Fame - Presidential Aw ardfor Outstanding Leadership in Providing Quality Health Service to his Constituents from 2006-2010” (2010) from the Philippine HospitalAssociation.
Secretary Petilla previously headed the Regional Development Council (RDC) and the Regional Peace and Order Council (RPOC) ofEastern Visayas. These regional councils are responsible for setting economic and social targets and directions as w ell as ensuringpeace, order and public safety in the w hole region.
Outside politics, Secretary Petilla has been involved in the IT industry for more than tw o decades. He w as President and CEO ofInternational Data Conversion Solution, Inc., and Accudata, Inc. w hich provides onshore and offshore business processing solutionsabroad. He is also a part-ow ner and consultant of DirectData Capture w ith business off ices in the United Kingdom and United States.
Secretary Petilla w as previously an educator for a number of years at the Ateneo de Manila University and consultant for various firms.
Government of the Philippines
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Proceso J. AlcalaSecretaryDepartment of Agriculture
A civil engineer by profession, Mr. Proceso J. Alcala was appointed as Secretary of the Department of Agriculture (DA) by President BenignoS. Aquino III in June 30, 2010. Prior to his appointment, he served as a representative of the 2nd District of Quezon Province for two three-year terms (2004-2007 and 2007-2010).
As a law maker, Mr. Alcala authored the Organic Agricultural Act of 2010 (RA 10068). Mounts Banahaw-San Cristobal Protected LandscapeAct (RA 2718), and co-authored the Climate Change Act (RA 9729) and the Expanded Senior Citizens Act (RA 9994). Among other projects,he led the establishment of the Sentrong Pamilihan ng Produktong Agrikultura sa Quezon – a trading center in Sariaya town that allowedfarmers to sell their produce directly to wholesale buyers. This has resulted in increased incomes for their families. This trading center nowserves as a model throughout the country.
At the DA, Secretary Alcala laid the Agrikulturang Pilipino or Agri-Pinoy framework as the guide for the plans and goals of the Department fora progressive, sustainable and competitive national agriculture and fisheries sector. Through his leadership and hands-on managementstyle, he enjoined all stakeholders to put the farmers and fishers at the center of all programs, and helped restore trust in government.
With this in mind, he has visited all 80 provinces of the country, meeting and feeling the pulse of small farmers, f isherfolk and local off icials.This has resulted in field-based methods to deliver improved, effective and direct assistance to farmers, f ishers and agriculturalentrepreneurs.
With farmers’ hard work and support from the local government units and the private sector, the Philippines relinquished its status as thebiggest rice importer in the world. Instead, efforts have been intensif ied so that the country can be self-suff icient in rice by end of 2013 throughthe Food Staples Sufficiency Program.
Secretary Alcala obtained his B.S. Civil Engineering degree from the Luzonian University Foundation in 1978 and is a lifetime member of thePhilippine Institute of Civil Engineers.
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Ramon R. Jimenez, Jr.SecretaryDepartmentofTourism
What trulymakes the Philippines a unique,amazing,and special placeto see?
For the Department of Tourism, it has found the simplest, most direct answer to the fundamental question of every travelerthrough its tourism campaign, It’s more fun in the Philippines. The new expression is a powerful, compelling idea that drawsstrength from the fact that it is a fundamental truth about the Philippines—the Philippines is not just a place to see, it is a place tobe.
The man behind this tagline that became a top trending topic on social media sites is a writer, mentor, former instructor,marketing communications expert, and one of the pillars of Philippine advertising – the Honorable Ramon R. Jimenez, Jr.,Secretaryof the DepartmentofTourism.
Today with over 75,000 memes of the tagline contributed by people from all walks of life, the campaign has certainly built a newsense ofexcitementaround the tourism brand and elicited renewed enthusiasm for the country’s tourism industry.
In keeping with his promise to make tourism the “people’s business,” Secretary Jimenez aims to transform the department into aprimary selling unit with the ultimate goal of not only improving statistics, but also ensuring that every endeavor would be fulfillingand profitable for Filipinos. Under his leadership, the DOT has joined convergence projects with government agencies and theprivate sector, and activelyespoused policyreforms.
Secretary Jimenez hopes to build enough energy around tourism to give the Philippines the global attention it deserves.Brimming with confidence, he looks forward to meeting the target of 10 million foreign tourist arrivals by 2016, and seeing tourismfinallytake its place as a keydriver of socio-economic progress in the country, to make it “more fun” for all.
Government of the Philippines
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Kim S. Jacinto-HenaresCommissionerBureau of Internal Revenue (BIR)
Ms. Kim S. Jacinto-Henares was appointed as Commissioner of the Bureau of Internal Revenue on July 2010. Prior to herappointment, Commissioner Henares was Senior Private Sector Development Specialist at the Worldbank Group where sheco-convened for and in behalf of the International Finance Corporation (IFC), the Growth and Investment Climate WorkingGroup of the Philippine Development Forum to establish the national strategy for increasing growth and improving theinvestment climate in the Philippines. She was also in charge of the Worldbank’s National Program Supporting TaxAdministration Reform (NPSTAR) – a US$11 Million loan to the Bureau of Internal Revenue to implement reforms in taxadministration.
Commissioner Henares was the Deputy Commissioner for the Special Concerns Group of the BIR from August 2003 –November 2005 and was a consultant to the Commissioner from January 2003 – August 5, 2003. As consultant at theInternational Development and Legal Consultant, she served as trade expert to the EU funded ASEAN Single WindowProject, a pilot implementation of ASEAN Single Window between the Philippine Bureau of Customs and the Royal ThailandCustoms; International Law Expert for the development of a Philippine National Strategy of Accession to the Revised KyotoConvention;among others.
She has also previously held various positions in government such as Director of the National Power Corporation and PowerSector Assets & Liabilities Management Corp., Chairman of Cagayan Economic Zone Authority, Governor of Board ofInvestments and Representative of the InvestmentCoordinatingCommittee.
Commissioner Henares obtained her Master of Laws major in International and Comparative Law from GeorgetownUniversity in Washington D.C., U.S.A. She earned her Bachelor of Laws degree from Ateneo de Manila University andBachelor ofSciencein Commerce major in Accountingfrom DeLa Salle University.
Government of the Philippines
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Rozzano Rufino B. BiazonCommissionerBureau ofCustoms
Mr. Ruffy Biazon was appointed by President Benigno S. Aquino III as the Commissioner of Customs on September 16,2011. He is a former member of the Philippine House of Representatives, serving in the 12th, 13th and 14th Congress from2001 to 2010. He represented the Lone Congressional District ofMuntinlupa City.
In Congress, he served as Chairman of the Committee on Metro Manila Development, Vice Chairman of the Committeeon National Defense and Security, Vice Chairman of the Committee on Information and Communications Technology, ViceChairman of the Committee on Appropriations and member of the Congressional Oversight Committee on Visiting ForcesAgreement.
His three terms as legislator was marked by very significant achievements. He was principal author of 8 Republic Acts andco-author of 36 others. In his last term in Congress, he filed a total of 81 bills and resolutions, most of which are national inscope.
For his exemplary performance as House Representative, Commissioner Biazon was cited by the Philippine Daily Inquireras “one of the most prolific legislators”. The Philippine Graphic Magazine also included him as one of the Top 100 YoungLeaders of the country and the Philippines Free Press Magazine as an Outstanding Congressman.
Government of the Philippines
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Teresita J. HerbosaChairpersonSecurities and Exchange Commission
Ms. Teresita J. Herbosa was appointed as the Chairperson of the Securities and Exchange Commission in May 2011.Since her appointment, SEC’s operations have gone through complete computerization. She has embarked on anextensive capacity building of SEC personnel through training, recruitment and adoption of a performance-basedevaluation system. Chairperson Herbosa having specialized in litigation for more than 30 years, has directed the SECdepartments concerned to step up investigations and enforcement actions through the imposition of administrativesanctions and filing of criminal cases againstpersons who commit securities law violations.
Apart from her job at the SEC, by law, Chairperson Herbosa is a member of the Anti-Money Laundering Council(AMLC), heads the Business and Economic Sector of the Office for Competition under the DOJ, and is Chairperson ofthe Credit Information Corporation which is the central credit bureau of the country.
Prior to the SEC, she was a senior partner and the first female co-managing partner of the Angara Abello ConcepcionRegala & Cruz Law Office (ACCRALaw). She has also received numerous citations for her legal excellence from theInternational Financial Law Review in its publication “Guide to the World’s Leading International Business Law Firms2001 Edition”, the Asia Pacific Legal 500 (The Guide to Asia’s Commercial Law Firms), and the International Who’s WhoofRegulatory Communications Lawyers,and other publications.
Chairperson Herbosa obtained her Master of Comparative Law degree from the University of Michigan Law School inAnn Arbor, Michigan. She graduated with the degrees of Bachelor of Arts cum laude and Bachelor of Laws cum laudefrom the University of the Philippines.
Government of the Philippines
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Cosette V. CanilaoExecutive DirectorPublic-Private Partnership (PPP) Center
Ms. Cosette V. Canilao is the Executive Director of the Public-Private Partnership (PPP) Center. Prior to joining thePPP Center, she was a Director of Standard Bank where she established and headed its distressed debt servicingbusiness in the Philippines. Ms. Canilao was also the President and CEO of the bank’s various SPV companies. Sheis also a former partner of PricewaterhouseCoopers where she headed the Crisis Management Practice and FinancialServices (FS) Industry consulting.She started her career in program lending and corporate banking.
Ms. Canilao holds a Master of Science in Finance degree from the University of the Philippines. She has attendednumerous trainings in the course ofher career including an executive program atHarvard Business School.
Government of the Philippines
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Guillermo M. LuzPrivate Sector Co-ChairmanNational Competitiveness Council
Mr. Guillermo M. Luz is the Private Sector Co-Chairman of the National Competitiveness Council, a public-private sectorbody dedicated to developing a strategy for the long-term competitiveness of the Philippines through policy reforms,project implementation, institution-building,and performance monitoring.
He was Executive Vice President and Chief Operating Officer of Ayala Foundation from December 2006 to May 2011, afoundation which manages projects in education, environment, entrepreneurship, arts and culture, and communitydevelopment.He concurrentlyserved as Director ofAyala Museum from January2010 to May 2011
He was Executive Director of the Makati Business Club from 1987 to 2006, after joining its staff in 1983. While at MBC, heconcurrently served as Executive Director of the Philippines-United States Business Council, Philippine-British BusinessCouncil, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-MalaysiaBusiness Council.
Mr. Luz was the Secretary-General of NAMFREL from 1992 to 2006, overseeing preparations for its Operation QuickCountand pollwatching in the 1992,1995,1998,2001,and 2004 elections.
Private Sector
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Erramon I. AboitizPresidentand ChiefExecutive OfficerAboitiz Equity Ventures
Mr. Erramon I. Aboitiz is the President and CEO of Aboitiz Equity Ventures, Aboitiz Power Corporation, and Aboitiz& CompanyInc.
He also occupies various positions in other companies. He is the Chairman of Aboitiz Renewables, Inc., ThermaPower, Inc., SN Aboitiz Power, Davao Light & Power Co., Cotabato Light & Power Co., Subic EnerZone Corp., CitySavings Bank, San Fernando Electric Light and Power Co., and Aboitiz Foundation, Inc. He is the Director of UnionBank of the Philippines, Pilmico Foods Corp., AboitizLand, Inc., and Family Business Development Center (Ateneode Manila University).
Mr. Aboitiz obtained his Bachelor of Science degree in Business Administration major in Accounting and Financefrom Gonzaga University, Spokane,USA.
Private Sector
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Francisco (Paco) S. Sandejas, Ph.D.Managing PartnerNarra Venture Capital
Dr. Paco Sandejas is the Founder and Managing Partner of Narra Venture Capital ("NarraVC") which invests in high-technology companies in the fields of semiconductors, communications, computing, internet, software, and alternativeenergy. Based in the Philippines, Dr. Sandejas invests in Silicon Valley, the Philippines and other technology hubs of theUnited States and Asia. He assists NarraVC's investment companies and clients with early stage financing, marketing,business development, and strategic advice. NarraVC's management group in the Philippines also provides high-technologymanagement and consulting services. Some of NarraVC's successful past investments are SiRF (now CSR), InphiCorporation,and Sandbridge Technologies.
Dr. Sandejas is also on the boards of Quintic Holdings, Astute Networks, Stratpoint Technologies, PSI Technologies, XeptoComputing,Credit Information Corporation (Philippines),and Philippine DevelopmentFoundation.
Dr. Sandejas has Ph.D. and M.S. degrees in Electrical Engineering from Stanford University where he co-invented theGrating Light Valve. He holds six US and international patents. He completed his B.S. Applied Physics degree from theUniversity of the Philippines as its first summa cum laude and was awarded one of the Ten Outstanding Students of thePhilippines in 1989 by the Philippine President. He has worked as a research consultant for two start-ups in opticalnanotechnology,as a Product Manager at Applied Materials, and as Vice-PresidentatH&Q Asia Pacific.
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Directory
Bangko Sentral ng PilipinasGovernor Amando M. Tetangco, Jr.A. Mabini St. cor. P. Ocampo St., Malate Manila
Telephone Number: (632) 708-7206 Fax Number: (632) 708-7209
Department of Agriculture
Secretary Proceso J. Alcala 4/F, DA Annex Bldg. Diliman, Quezon City Telephone Number: (632) 920-3986 / 920-2223
Fax Number: (632) 926-6426
Department of Budget and Management
Secretary Florencio B. Abad General Solano Street, San Miguel, Manila Telephone Number: (632) 735-4926 / 735-4929 Fax Number: (632) 735-1955
Department of Energy Secretary Carlos Jericho L. Petilla
Energy Center, Merritt Road, Fort Bonifacio, Taguig CityTelephone Number: (632) 840-2008 Fax Number: (632) 812-6194
Department of FinanceSecretary Cesar V. Purisima6/F, Department of Finance Building, Roxas Boulevard, ManilaTelephone Number: (632) 523-9215 / 523-9219 Fax Number: (632) 526-8474
� Bureau of CustomsCommissioner Rozzano Rufino B. BiazonBOC Bldg., South Harbor, Port Area, ManilaTelephone Number: (632) 527-4537 / 527-4573Fax Number: (632) 527-4573
� Bureau of Internal RevenueCommissioner Kim S. Jacinto-HenaresNational Office Bldg, Agham Road, Diliman, Quezon CityTelephone Number: (632) 921-0430 / 924-2915Fax Number: (632) 925-1789
� Securities and Exchange CommissionChairperson Teresita J. HerbosaSEC Bldg., EDSA, GreenhillsTelephone Number: (632) 584-5343 / 584-5767Fax Number: (632) 584-5498
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National Economic and Development AuthoritySecretary Arsenio M. Balisacan12 Jose Maria Blessed Escriva Drive, Ortigas Center, Pasig CityTelephone Number: (632) 631-3716 / 3747 Fax Number: (632) 631-3747
� Public-Private Partnership Center Executive Director Cosette V. Canilao
NEDA sa QC, EDSA, Diliman, 1103 Quezon City Telephone Number: (632) 929-4968 / 929-5187Fax Number: (632) 929-8593
Department of Public Works and HighwaysSecretary Rogelio L. SingsonBonifacio Drive, Port Area, ManilaTelephone Number: (632) 304-3300 Fax Number: (632) 304-3020
Department of Tourism Secretary Ramon R. Jimenez, Jr.
Department of Tourism Bldg., T.M. Kalaw Street, Manila Telephone Number: (632) 523-8411 Fax Number: (632) 521-7374
Department of Trade and Industry Secretary Gregory L. Domingo Industry and Investments Bldg., Senator Gil Puyat Ave., Makati CityTelephone Number: (632) 890-9333 / 896-1166 Fax Number: (632) 899-5518
Department of Transportation and Communications Secretary Joseph Emilio Abaya The Columbia Tower, Brgy. Wack-Wack Ortigas Ave.,Mandaluyong City
Telephone Number: (632) 727-7109 Fax Number: (632) 726-7104
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Eleven Years of Commitment to the Investor Community
The effective implementation of the Government’s economic program and itssuccess depends on regular two-way dialogue between economic policy makersand the investment community.
The Investor Relations Office (IRO) was established in July 2001 to strengthenthe country’s relations w ith investors and other stakeholders by promoting activechannels of information flow and dialogue between economic policy makers andinvestors.
Based in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP), theIRO has a dedicated staff comprised of trained economists and communicationspecialists who work with colleagues in the BSP and the economic agencies toimplement a w ide-ranging programof investor relations activities.
As the Government has implemented its economic reform program over the lastten years, the IRO’s program of investor outreach has helped to ensure thatinvestor decisions benefit from a comprehensive understanding of the progressin reforms and w hat they mean for the economic fundamentals of the Philippines.
In turn, the Government’s economic reform program has made the economyrelatively more resilient amid the global f inancial and economic crisis. With stablemacroeconomic fundamentals, the Philippines remains as one of the most viableeconomies for investments in the emerging market.
The IRO is proud to have played a role in communicating the successes of theGovernment’s reform program in the last eleven years and is committed tocontinuing its efforts to promote the Philippine economy.
Serving Our Stakeholders in the Philippines and Internationally
The IRO provides services to a wide range of stakeholders –the Government’s economic agencies, f inancial institutions,credit rating agencies, bilateral and multilateralorganizations, domestic and foreign investors, the diplomaticcorps, business people, the media and the general public.All services to its stakeholders are underpinned by a set offundamental principles: transparency, accessibility,timeliness, consistency and feedback.
The IRO adopts a multi-pronged approach to serving itsstakeholders through:� Dissemination of key economic and financial information
about economic policy objectives and performance� Seeking market feedback on current and proposed policy
measures� Providing feedback to economic policy-makers about
investor sentiment� Facilitating candid and constructive dialogue between
policy-makers and investors
Investor Relations OfficePromoting Excellence in Investor Relations. Enhancing Sovereign Value
The IRO undertakes a range of initiatives to build aw areness among domestic and international investment audiences around theGovernment’s economic reform program, promote specif ic investment opportunities in the Philippines and facilitate information exchange anddialogue betw een key economic policy decision-makers in the Government and domestic/international investors. These initiatives include:� Regular Economic Briefings to update the business community, media and industry organizations on the country’s economic
performance� Investor Roadshows to bring the Government’s resilient economic performance record, commitment to sound economic management
and responsible reformto members of the international f inancial community� Media Briefings to raise aw arenessof the Government’s progress in economic reforms and plans for ongoing reforms� Government Policy Roadshows to increase the business community’s understanding of government policy measures to generate
support for the policy implementation process� Publications to inform policy-makers about market developments and sentiment� E-mail service to keep investors and other investorsabreast of data releases on a regular basis� An English Language website, www.iro.ph, to provide a w ide range of easily accessible information about the Philippines’ economic
performance and the government’s economic policies. The website serves as a warehouse of valuable information such as economicbriefing presentations, press releasesand economic and statistical data.
Contact InformationFor further information about the Investor
Relations Office, or about the Philippine
economy, please contact:Claro P. Fernandez
Investor Relations Office Bangko Sentral ng Pilipinas
A. Mabini St. cor. P. Ocampo St.
Malate Manila, Philippines 1004Tel: (632) 708-7487 / (632) 336-7124
Email: [email protected]: (632) 708-7489
Website: www.iro.ph
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