mindanao as of may 2005 - map agribusiness and ......2005/08/23 · 7.3%. this was brought about by...

indanaoUpdatesM

as of May 2005

AGRICULTURE

fOreign trade

investments

trANSPORTATION

tOurism

A Publication of the Mindanao Economic Development Council (MEDCo)

Mindanao’s ECONOMYgriculturea

Corn production also performed significantly with a 11.5% growth brought about by the 3.0% expansion in the harvest areas, availability of quality seeds and better market prices which encouraged farmers to plant corn.

Corn output increments were noted in most regions particularly in Regions X, XII and XIII. However, a slowdown in output was reported in ARMM due to slight worm infestation in Basilan, floodings in Maguindanao, landslide in Lanao del Sur and dry spell in Tawi-Tawi .

Corn

RiceTotal palay production in Mindanao reached 3.4 million MT in 2004, 5.9% higher than the 2003 output. This output gain was likely the result of wider harvest area and improvement in yield per hectare in irrigated and rain-fed farms.

Among the regions, ARMM had the highest ex-pected output growth this year at 26.3% while Regions IX and XII likewise displayed significant output increments at 6.1% and 3.9%, respective-ly. Harvest area in Northern Mindanao, however, was contracted by 4.1% due to the shifting of some producers to cash crops and the high cost of palay inputs.

Livestock and poultry outputs also exhibited positive increments this year compared to their 2003 performance particularly carabao, goat, swine and chicken production. While these sectors maintained their favorable performance during the first half of the year, livestock and poultry producers increased production as market demand for these commodities dramatically increased especially during the last few months of 2004.

Livestock

In 2004, Mindanao’s economy consistently showed remarkable resilience brought about by the strong support of the agriculture and services

sectors. Mindanao’s agriculture, fisheries and forestry sectors are expected to post a 2004 year-end growth of 3.8%. Services, the fastest-expanding sector in the past five (5) years and the largest contributor to Mindanao’s GDP growth in 2003, is projected to post a 4.4% year-end growth in 2004. The growth on the services sector was spurred mainly by the recovery of the transportation, communication and storage subsectors. The industry sector likewise shall expand by 3.3%, propelled by significant contributions of the mining and quarrying and manufacturing subsectors.

oreign tradefForeign trade transactions in Mindanao are projected to remain

bullish this year as export growth is targeted to reach 5.9% from US$1.4 billion in 2003 to US$1.5 billion in 2004 . Our top five (5) traditional export products include coconut oil, banana, tuna, fresh pineapples and iron ore agglomerates. Nickel ores, along with iron ore agglomerates, were among the major industrial export products of Mindanao. Japan, USA, Netherlands, South Korea and Taiwan remain as Mindanao’s top five (5) export destinations. Combined US and Japan markets capture 71.7% of the total exports share of Mindanao. Singapore, meanwhile, is considered as a major export market for the island’s coconut oil and tuna products.

IMPORTS are projected to decline by 11.0% as of year-end 2004. Mindanao still regularly imports flat-rolled products of iron, wheat, milk, iron ore and concentrates and kraft liner. Majority of Mindanao’s imports are sourced from USA, Vietnam, Brazil, Japan and New Zealand. Thailand and China emerged as two of our major non-traditional sources of products this period where we imported more than US$65.8 million worth of goods, particularly flat-rolled products of iron, rice, fertilizers (urea and ammonium sulphate) and fabrics (textile).

nvestmentsiA number of new investments continued to pour in Mindanao. Based on BOI data alone, the number of registered projects shot up by 38.1% in 2004 and targeted to generate 7,243 jobs. Total value of these registered investments reached P7.81 billion in 2004 or a 279.6% growth from P2.06 billion in 2003. Meanwhile, a total of nine (9) new investment projects were registered at the PHIVIDEC Industrial Authority with a total project cost of P1.6 billion and are expected to generate at least 283 job opportunities. Almost all of the BOI-registered investments were already in their commercial operations while six (6) of the PHIVIDEC-registered projects are currently in their planning and construction stages. Majority of these investments are geared on food processing and large-scale agricultural production.

Mindanao Updates 4

In general, Mindanao is seen to enjoy a 22.6% growth in trade surplus for 2004.

Among the newly registered investments, the distillery plant of Ginebra San Miguel, Inc. emerged as the biggest investor in PHIVIDEC with a P1.4 billion project cost. The said investment is already in its pre-construction stage. Meanwhile, the Global Steel Works International, Inc. which bought the National Steel Corporation (NSC) in Iligan City was the biggest investor registered in the BOI with a P6.1 billion project cost.

oreign trade ransportationtThe number of air passengers was significantly increased by 7.3%. This was brought about by increased tourism activities among the Mindanao regions as well as the conduct of the important holidays (e.g. All Saint’s Day, Christmas, etc.) during the period. The Davao City International Airport is still the busiest airport in Mindanao accommodating approximately 1.4 million incoming and outgoing passengers. Cagayan de Oro Airport is the next busiest airport admitting more than 0.5 million passengers. Air cargo likewise improved by 3.1% this period brought about by increased reliance of businessmen and passengers for faster shipment of goods and products to other destinations.

Meanwhile, sea passenger performance posted a 2.5% increase this period. Disembarking passengers comprised the majority (51%) of the sea passenger traffic among the Mindanao ports while 49% were embarking passengers. The relative growth in the volume of sea passengers may still be attributed to the increased tourism activities in the various Mindanao regions. Sea cargo traffic, on the other hand, maintained its performance in 2004 which can be attributed to the continuous transportation of goods to and from the Mindanao ports.

mploymenteIn 2004, the economy employed 7.8 million Mindanaoans,

of which more than half (51%) were in the agriculture sector while 39% were in the services sector .

An increase in employment was observed from the agricul-ture sector (3.7%) due to improved harvests and in the ser-vices sector (6.6%). Most of those who are in the services sector either work in the wholesale and retail industry (e.g. malls and department stores) and in the transportation and communications industry. More than half (57%) of those who have work were full-time employees , while 41% of the employed persons were underemployed or those who work less than 40 hours a week.

Unemployment remains stable as it posted 7.9% of the la-bor force compared to the country’s overall performance; a reflection of the island’s vital capacity to generate enough jobs to keep up with labor force growth, which itself is a function of the rapidly rising population.

ourismtMindanao’s total visitor arrivals are estimated to grow by

8.9% from 2.2 million in 2003 to 2.4 million in 2004. While majority of these visitors are domestic travelers, the number of international visitors are also expected to rise.

Regions X and XI are the major tourist destinations in Mindanao with more than 1.2 million foreign and domestic tourists. The increase in tourist arrivals could be attributed to the various major activities in the regions like the Kadayawan Festival in Davao, the Cagayan de Oro City fiesta, the Hermosa Festival in Zamboanga as well as

the tourism week observance of other key destinations in Mindanao.

The Department of Tourism (DOT) further noted that the attractions of these areas for investment opportunities provide reasons for both domestic and foreign visits.

As such, Americans, Japanese, Koreans, Chinese, Taiwanese, Australians, Singaporeans, Canadians, Britons and Germans remain the top 10 patrons of Mindanao’s tourism industry.

Mindanao Updates 5

Mindanao Updates 6

ricesp Prices of basic goods and commodities, which are a prime concern for the consumers, slightly escalated in

2004. Mindanao’s inflation rate reached 6.3% which is way above the national inflation rate of 5.5%.

In 2004, Mindanao was not spared by the general increase in the prices of key goods and services, particularly food, fuel, and transport. Supply constraints for food items such as fish and corn have been the result mainly of higher prices for these commodities. The Department of Agriculture (DA) likewise reported that higher meat prices were a result of consumers buying fewer poultry products due to the avian flu scare.

While global demand and supply factors could rise international oil prices to unanticipated levels, it is projected that the higher cost of imported oil would lead to increases in domestic pump prices which would result to hikes in transport fares and power rates.

rivate building construction p

Consistent with the increase in the number of new investments and business expansions, the construction industry likewise performed significantly during the

period. The number of new building constructions in Mindanao soared by 22.3% to 11,835 during the first half of 2004 from 9,678 in the same period last year. Total cost of these constructions increased by 27.2% valued at P4.78 billion from P3.76 billion in 2003.

Most of the building constructions for the 1st semester of 2004 in Mindanao were new residential buildings (7,453) and non-residential buildings (1,239) followed by alterations and repairs (3,141) of existing buildings. Total value of new building constructions reached P4.35 billion, a 23.6% increase from P3.52 billion in the same period last year. Value of alterations and repairs, on the other hand, grew by 25% from P0.24 billion last year

The value of construction projects this period has gone up due to the increase in the prices of construction materials such as cement and steel . The rise in residential construction activities may indicate an increased spending power by the consumers especially for those who receive remittances from their OFW household members which enabled them to build or repair their houses . Similarly, the Home Development Mutual Fund (PAG-IBIG Fund) reported a surge in housing loans due to the increase in loan to collateral ratio which allowed homebuyers to borrow without the need for equity. With this, about 20,565 housing units were constructed in the whole country for the first four months of this year as against 8,645 units in 2003, showing a 138% increase according to HDMF.

utlook for 2005oGrowth is likely to improve for Mindanao in 2005, banking on the positive developments in the tourism, foreign trade transactions and agriculture sectors as the main drivers of growth.

In 2005, GDP growth is expected to be within the range of 4.4-4.5%. At the sector level, agriculture is projected to pick up by 3.9-4.0%. Industry is expected to improve by 3.4% led by a stronger performance of the manufacturing sector. The services sector, meanwhile, is expected to grow by 4.5-4.6%.

GDP

InflationWhile Mindanao’s inflation rate is slightly higher in 2004 than the national average, it is expected that general price levels would remain stable next year. With this, inflation is projected to hover within the range of 3.0-4.0% in 2005 considering the impact of the high prices of oil and the lagged effects of the weak currency in 2004.

investmentsAmong the investments that Mindanao could look forward to in 2005 include:

The Japanese-owned Pilipinas Kao Inc. (PKI), which is investing P3.7 billion to raise its production capacity for fatty alcohol. PKI will put up a facility with an annual production of 100,000 tons replacing its existing plant in Jasaan, Misamis Oriental.

KORESCO, a South Korean resort and development company is expected to construct a 50-room leisure hotel at Pueblo Golf Estates in Cagayan de Oro City. The hotel will be completed in third quarter of 2005.

Sumitomo Fruits Corp. (SUMIFRU) is expected to pour in additional P1.5 billion investments for its banana production expansion in Davao this year. The said investment shall boost agribusiness in Mindanao and would generate employment of at least 6,000 jobs.

Business leaders in the country have likewise recognized Mindanao’s potential to become the next top supplier of skilled labor for the outsourced information and communications technology (ICT) services sector. In fact, President Arroyo inaugurated the first call center in Davao City called CyberCity Teleservices last September 2004.

Two (2) more call center companies are expected to put up their business in Mindanao this year, particularly in Davao and Cagayan de Oro. In addition, several contact center companies based in Luzon such as People Support are already looking at the manpower resources of Mindanao to supply their manpower requirements for its Manila and Cebu call center operations.

With the Supreme Court ruling of the new mining law as constitutional, the mining industry shall become a key investment player in Mindanao in 2005. Mindanao’s rich mineral resources are eyed as a potential new investment hot spot in the country.

Palay and Corn

ExportsFrom 2005 to 2006, exports of goods are expected to grow faster than in 2004, by around 11.5% pulled up by the strong market demand for Mindanao’s traditional agricultural products such as coconut oil, banana, tuna and pineapple.ImportsForecasted to grow by around 6.5% because of the higher need for semi-processed inputs such as kraft liner, alloy and fertilizers which shall be used in producing higher value added products for export.

tourismRegional tourism officials also hope that the improving peace and order condition in Mindanao would negate projections of a slowdown starting next year. This would then allow foreign visitors to enjoy the island’s traditional sites and discover new points of interests within the regions of the island.

Mindanao Updates 7

Palay and corn production outputs are projected to surpass 2004 targets by more than 3.3%. While these projections are quite optimistic, Mindanao farmers should also be informed that crop outputs could likely be affected by the drastic changes in oil prices as farm inputs such as seeds and fertilizers would also increase.

Employment Unemployment is likely to stay at around 5.9-6.0% of the total labor force in Mindanao. This percentage is still lower than the national average, considering employment opportunities brought about by renewed investor confidence.

DEVELOPMENT STRATEGIESMindanao’s

New Cores of Gov’t Centers

Classrooms,Buildings, Desks, Chairs, Books, and Scholarships

Support to Peace Process Job Creation, SME,

and Agri-Business Development

Automation of Electoral Process

Digital Infrastructure

RORO Transport Networks

HousingCenters

Electricity,Water to Barangays

Balancing of the Budget

The 10-Point Agenda put forward by President Gloria-Macapagal Arroyo has particularly afforded the strategic opportunity for Mindanao to significantly contribute to the overall development efforts of the national government. It may be noted that the development strategies for Mindanao aptly mirror the current thrusts of the national government.

ONTINUING EFFORTS FOR MINDANAO’S FULL PHYSICAL INTEGRATION C

Five (5) Operational Task Forces in Mindanao that facilitate interaction and collaboration between and among concerned agencies

and organizations towards the development of the infrastructure sector in the island are supported by Infrastructure and Monitoring Advisory Groups (IMAGs).

Mindanao Arterial Roads Task Force Mindanao Water Transport Task Force Mindanao Watershed and Irrigation Task Force Mindanao Energy Task Force Mindanao Information and Communications Technology Task Force

The IMAGs are ad hoc mechanisms designed to monitor and speed up the progress of infrastructure projects in Mindanao. The IMAGs have continuously worked with local government units and national line agencies in resolving problems on project implementation. The IMAGs promote transparency in government undertakings because all sectors are well represented. Chaired by the Local Chief Executive of the project area where implementation is most problematic, the IMAGs in Mindanao have been very successful that various groups are lobbying for its replication in other areas of the country.

Task Force

Accomplishments (since 1996)

a) consideration of projects by donors (e.g., Davao-Bukidnon Road, Malalag-Malita-JAS Road); (b) inclusion of project gaps in on-going package/s; (c) extension of ODA loans; (d) fasttrack release/s of project funds; (e) facilitate right-of-way acquisition and quarry sites; (f) signing of Memorandum of Agreement between DPWH and electric utility companies; (g) membership of the IMAG Chairs in DPWH Bids and Awards Committee; and(h) designation of DPWH Regional Directors as Special Project Supervisors for foreign-assisted projects.

Atotal of 23 IMAGs in Mindanao were created since 1996. Of these, two (2) IMAGs ceased

to operate due to project completion and/or loan cancellation/expiration. The remaining 21 operational IMAGs cover the following projects: Malalag-Malita-Jose Abad Santos Road Project; Zamboanga-Pagadian Road Project; Philippine-Japan Friendship Highway Rehabilitation Project; Davao-Surigao Coastal Road Project (Davao Oriental Section); KFAED-Second Kuwait Road Projects; Malitubog-Maridagao Irrigation Project; Saug Multi-Purpose Irrigation Project; Dipolog, Pagadian, Cotabato, Sanga-Sanga, and Laguindingan Airport Projects; Mindanao Container Terminal Port Project; Butuan City Foreign-Assisted Projects (formerly the IMAG for the Lower Agusan Development Project); and Projects under the DPWH-ARMM Engineering Districts.

Mindanao Updates 9

DEVELOPMENT STRATEGIESMindanao’s

New Cores of Gov’t Centers

Classrooms,Buildings, Desks, Chairs, Books, and Scholarships

Support to Peace Process Job Creation, SME,

and Agri-Business Development

Automation of Electoral Process

Digital Infrastructure

RORO Transport Networks

HousingCenters

Electricity,Water to Barangays

Balancing of the Budget

The 10-Point Agenda put forward by President Gloria-Macapagal Arroyo has particularly afforded the strategic opportunity for Mindanao to significantly contribute to the overall development efforts of the national government. It may be noted that the development strategies for Mindanao aptly mirror the current thrusts of the national government.

RoadsAs of 18 June 2004, 60.13% of Mindanao’s national roads have been paved . This means that about 3,959 km of the island’s national roads is asphalt and/or concrete, while around 2,625 km is still gravel and/or earth roads . However, there are a number of major ODA-funded arterial road projects that are currently being implemented in Mindanao, such as but not limited to, KFAED Assisted Second Mindanao Roads Improvement Project, Zamboanga-Pagadian Road, Philippine-Japan Friendship Rehabilitation Project, Surigao-Davao Coastal Road (MTPDP priority), and Malalag-Malita-Jose Abad Santos Roads.

Currently, the MEDCo is monitoring six (6) foreign-assisted road project packages in Mindanao namely: 6th ADB Road Project, Philippine-Japan Friendship Highway Rehabilitation Project, Phase 2, National Roads Improvement Project 1, Zamboanga-Pagadian Road Project, KFAED-Mindanao Second Roads Improvement Project, 2nd Magsaysay Bridge and Butuan City Bypass Road. Please refer to attached Fig. 1 & 2 for the status of each project component.

BridgesThe President’s Bridge Program (PBP) covers the three (3) UK-assisted projects using the Mabey and Johnson modular steel bridges namely: Tulay ng Pangulo sa Salam, Tulay ng Pangulo sa Barangay, and Tulay ng Pangulo sa SZOPAD/Mindanao.


Mindanao Updates 10

Target Completed On-going Remarks

Tulay ng Pangulo sa Salam, Phase II

163 88None, but

44suspended

Project Cost Php 4.5 billion Loan expired in Dec. 2001 GOP fund for the bridge substructure was used to pay customs duties and taxes

Tulay ng Pangulo sa SZOPAD/Mindanao, Phase IV

526300

(280 are in Mindanao)

47(45 are in Mindanao)

Mindanao and Palawan Implementation period: 2002-2005 Cost-Php 9,867,118,000 Cost per bridge: Php 18,758,684.0

Tulay ng Pangulo sa Barangay, Phase III(16 August 2004)

402 203 67 Luzon and Visayas and part of Mindanao Implementation period: 2001-2005 Cost-Php 6,806,126,000 Cost per bridge: Php 16,930,662.0

There are also other ODA-funded bridge projects which are currently implemented in Mindanao such as the 6th ADB Bridge Component; and Austrian and UK-Assisted Bridge Projects.

As of December 2004, the accomplishments of the three (3) projects are as follows:

ONTINUING EFFORTS FOR MINDANAO’S FULL PHYSICAL INTEGRATION


SeaportsThe Mindanao Container Terminal Project (MCTP) in Tagoloan, Misa-

mis Oriental is now operational after the temporary restraining order was lifted in January 2005. The terminal has an area of 30.8 hectares and can accommodate 270,000 vans per year.

The Growth with Equity in Mindanao (GEM) Program Phase 2 has already implemented the improvement of the ports in Bongao, Lamitan, Maluso, Siasi, Siocon and Maimbung and these are expected to be completed in 2005. Details on the status of each project are shown in attached Fig. 3.

The World Bank (WB) – ARMM Social Fund (ASF) funded the rehabilitation and construction of the Jolo Base Port and the construction of the Passen-ger Terminal Building in Bongao (a complementary project of the Bongao Port Improvement Project undertaken by the GEM Program) which are now in the bidding stage.

In October 2004, the construction of a passenger terminal building, which is one of the components of the construction and rehabilitation of the Polloc Base Port Project, was already completed. This project is financed by the WB-ASF. Other remaining components of the WB-ASF such as repair of transit sheds, concreting of road network within the port operational zone and replacement of rubber dock fenders, are already in the bidding stage.

Surigao Nasipit Cagayan de Oro Iligan Ozamis Polloc Davao General Santos Zamboanga Jolo Bongao Cotabato

Some 39 feeder ports are also located in Mindanao namely:

Dapa, Lipata, Tandag, Cantilan, San Jose, Aras-Arasan, Doña Helen, Del Carmen in Siargao Island, Socorro, Mangagoy, Dapitan, Jimenez, Silanga, Sindangan, Lamao, Nabilid, Balingoan, Benoni, Balbagon, Opol, Guinsiliban, Kolambu-gan, Tubod, Butuan, Masao, Mati, Glan, Pagadi-an, Malangas, Ipil, Kalamansig, Lamitan, Isabela, Siasi, Kuala Baru, Bongao, Sitangkai, Malalag, and Sta. Ana

Mindanao has 12 base ports located in:

The original scope of the Third Airports Development Project (TADP) was reduced to three (3) components that include Aeronautical Fixed Telecommunications

Network / Aeronautical Information System (AFTN/AIS), related consultancy, and International Civil Aviation Organization (ICAO) training. The related consultancy component which includes design and engineering, as well as the first stage of the ICAO training component is already 100% completed. On the other hand, the AFTN/AIS component has been cancelled due to non-extension of the loan by the ADB which was triggered by the unresolved case filed by the TADP contractor against some DOTC officials. The undisbursed amount of the reduced TADP will be terminated in favor of ADB. However, the Southern Philippines Airport Development Project (SPADP), under which the civil works of the original TADP scope will be pursued, is not included in the budget strategy of the DOTC until CY 2007.

Meanwhile, the scope of works has been finalized for the Intermodal Transport Development Project (ITDP). The PPTA will focus on the airport projects but this may be expanded to a broader scope subject to the confirmation of the Government of the Philippines (GOP). The Memorandum of Agreement (MOA) between the DOTC and ADB will be finalized upon the completion of the Phase 1 of this project. Evaluation of consultants who will undertake the study has been completed and the contract was awarded to the Louis Berger International.

Airports

Mindanao has the following airport facilities:

Three (3) alternate international airports located in Zamboanga, General Santos, and Davao; three (3) trunkline airports located in Cotabato, Cagayan de Oro, and Buayan; 13 secondary airports located in Sanga-Sanga, Jolo, Dipolog, Pagadian, Ozamis, Malabang, Iligan, Allah Valley, Mati, Bislig, Butuan City, Tandag, and Surigao City; and seven (7) feeder airports located in Cagayan de Sulu, Camiguin, Ipil, Liloy, Siocon, Siargao, and Malaybalay.

Mindanao Updates 11

Irrigation

Mindanao has 959,000 hectares of potential irrigable area and 278,000 hectares of service area. As of December 2003, irrigation development

in Mindanao is pegged at 29.41%. Of the total 282,021 hectares service area of Mindanao, 55.67% is served by national irrigation systems, 35% by communal irrigation systems and 7% by private systems. The completion of the following ODA-funded irrigation projects such as Lower Agusan Development Project, Bubunawan River Irrigation Project, and Malitubog-Maridagao Irrigation Project (MMIP) will help address Mindanao’s requirements. Please refer to attached Fig. 4 for the status of these projects.


Mindanao Updates 12

EnergyMindanao’s barangay energization

level as of June 2004 was pegged at 81%. While this is already quite high, Mindanao still lagged behind Luzon (96%) and Visayas (90%).

STATUS OF BARANGAY ELECTRIFICATION as of June 2004(Electric Cooperative/Utilities Coverage)

Region City/Municipality BarangaysCoverage Energized Coverage Energized % Un-

energized

IX 72 72 1,869 1,407 75 462X 85 85 1,833 1,659 91 174XI 43 43 894 821 92 73XII 46 46 1,024 861 84 163

ARMM 99 99 2,609 1,704 65 905CARAGA 73 73 1,308 1,224 94 84TOTAL

MINDANAO 418 418 9,537 7,697 80 1,861 Source: National Electrification Administration (NEA)

The implementation of the Mindanao Transmission Augmentation Program (MINTA), as well as other power supply enhancement projects, is already ongoing. The program is envisioned to provide the medium and long-term solutions to the potential Mindanao power shortage beginning 2005.

The interconnection process in Isulan,Sultan Kudarat (between SKTSI and TelOf) is ongoing. The interconnection agreement between Cruztelco and TelOf in Prosperidad, Agusan del

Sur were already signed, while Philcom was already interconnected with Bayantel and Cruztelco in San Francisco, Agusan del Sur. Interconnection is also ready for activation between Bayantel and Cruztelco in Nasipit, Agusan del Norte.

As of March 2005, there are already 21 total interconnection agreements in Mindanao. The completion of the aforementioned interconnection agreements will fully interconnect all exchange carriers in Mindanao.

Telecommunications

ONTINUING EFFORTS FOR MINDANAO’S FULL PHYSICAL INTEGRATION

NGOING INITIATIVES IN SUPPORT OF THE REVITALIZATION OF BIMP-EAGAO Training Workshops on Project Formulation for the C-I-Q-S sectors in Region IX, made possible through Australian funding support, were conducted to provide CIQS agencies in Region IX with the necessary tools for project development and formulation. The final output/proposals are currently being consolidated by NEDA IX.

Prior workshops have been conducted for the immigration and quarantine sectors. The following training workshops were conducted for the security and customs sectors:

Security Sector - 14 and 15 Feb 2005, Grand Astoria Hotel, Zamboanga City Customs Sector - 17 and 18 Feb 2005, Grand Astorial Hotel, Zamboanga City

CIQS Initiative

Mindanao Updates 13

The Zamboanga-Sandakan sea route has continued to operate with the regular shipping services of SRN Fast Seacrafts and Aleson Shipping Lines. This linkage has been existing since the early years of BIMP-EAGA and has been providing vital support to the conduct of cross-border trade between the traders of Zamboanga Peninsula and their counterparts in Sandakan, Malaysia.

Relatedly, bilateral efforts are being undertaken either through the initiative of the private or the public sector for the establishment of additional sea linkages that will connect Mindanao to other strategic points in BIMP-EAGA. An exploratory meeting was

Expansion of Sea Linkages

NGOING INITIATIVES IN SUPPORT OF THE REVITALIZATION OF BIMP-EAGAO

Mindanao Updates 14

held between the management of SRN Fast Seacrafts and the officers Sabah Ports Authority to discuss infrastructure requirements at the Port of Lahad Datu in view of the strong interest of the said shipping company to provide shipping services from Zamboanga and Bongao to Lahad Datu, Malaysia. An office is currently being constructed at the Port of Lahad Datu to administer CIQS procedures for the proposed sea route. SRN Fast Sea Crafts, Inc. will commence regular voyage as soon as the office is completed.

The Zamboanga-Tarakan sea route was also identified as an offshoot of the Business Mission to Tarakan, East Kalimantan, Indonesia, on 31 May to 2 June 2004. The delegation from Zamboanga has recommended the opening of this sea route after they discovered the potential of having cross-border trade with Tarakan. DTI IX recommended the proposal to Aleson Shipping Lines.

Expansion of Sea Linkages

Support to Sea Transport ServicesThe Uniform Port Tariff Agreement (UPT) between the Philippines and Brunei Darussalam has been extended by another two (2) years effective 27 April 2005. This is in addition to the UPT arrangement between the Philippines and Indonesia which was extended effective 16 January 2004.

Pursuant to the terms of the said arrangements, all vessels carrying the flag of Indonesia/Brunei and the Philippines which are accredited to operate under the BIMP-EAGA Program shall be entitled to special port charges on vessels, as follows:

Port Dues - US $ 0.040 per GRT Dockage - US $ 0.020 per GRT per day

Meanwhile, the Philippine Ports Authority (PPA) is currently negotiating with its counterpart in Malaysia for the establishment of UPT agreement between the Philippines and Malaysia.

NGOING INITIATIVES IN SUPPORT OF THE REVITALIZATION OF BIMP-EAGA

Mindanao Updates 15

At present, there are three operating air linkages from points in Mindanao to strategic destinations in BIMP-EAGA. These are the (1) Davao-Manado, (2) Zamboanga-Sandakan, and (3) Zamboanga-

Kota Kinabalu. There are also on-going initiatives to mount two (2) additional air routes that will link Davao to Brunei and Davao to Melonguane, Talaud, Indonesia.

The Davao-Manado air route was used to be served by two carriers—Merpati Airlines and Bouraq Airlines. However, Bouraq Airlines temporarily suspended its operation in December 2004 as it needed to change its charter in the Indonesian side and upgrade its aircraft to be able to provide convenient services to the growing number of passengers from Davao City to Manado City and vice-versa. Meanwhile, Merpati Airlines continues to serve this route every Monday.

On the other hand, cross-border trade and investment activities between Zamboanga Peninsula and neighboring cities of Malaysia expanded with the recent opening of additional BIMP-EAGA air linkages connecting Zamboanga City to Sandakan and Kota Kinabalu by South Phoenix Airways. The airline company commenced flying to Sandakan on 22 December 2004 on a bi-weekly basis, (every Wednesdays and Saturdays) and to Kota Kinabalu on 7 April 2005. South Phoenix now regularly flies to Kota Kinabalu every Sundays.


Expansion of Air Linkages


O

Mindanao Updates 16

As of May 2004, the revised Memorandum of Understanding (MOU) on the Expansion of Air Linkages shall be reviewed and discussed for adoption during the 9th Working Group Meeting which will be hosted by Malaysia in 2005. The revised MOU shall cover multiple airline

designation, provision of additional designated points, cooperative agreements (code sharing), and the Implementation of the Fifth Freedom Traffic Rights (FFTR) within the BIMP-EAGA.

On the other hand, the extension of the travel tax exemption program, which expired last June 2004, is one of MEDCo’s major advocacies in support of the development of air and sea linkages and to enhance trade and greater people mobility in the sub-region. MEDCo has gained the strong support of both the private sector and relevant agencies of the government on this matter. Worth citing is the initiative of the members of the House Special Committee for BIMP-EAGA in jointly endorsing the passage of a House Resolution that will urge the President to extend travel tax exemption for another period of five years. The said resolution is currently reviewed by the House Committee on Rules.

Support to Air Transport Services

As the Philippine-designated airline representative to the BIMP-EAGA Air Alliance Program, South Phoenix Airways shall open additional air services in the sub-region. With the facilitation of MEDCo, South Phoenix is in the final stage of mounting flights from Davao City to Bandar-Seri Begawan, Brunei Darussalam. This proposed route is envisioned to strengthen trade and investment activities between the area since this is strongly backed with related initiatives such as the forthcoming establishment of the Brunei Consular Office in Davao City, as well as the creation of the Philippine-Brunei Business Council.

Relatedly, MEDCo is working closely with its counterparts in Indonesia to facilitate the establishment of the Davao-Melonguane, Talaud, Indonesia air linkage. The proposed route was jointly endorsed by the private sector from the Jose Abad Santos Glan Sarangani—Cooperation Triangle (JAGS-CT) and their counterparts in the Regencies of Talaud and Sangir during the JAGS-CT Trade Mission to Indonesia on 17-24 January 2005. The National Government of Indonesia strongly supports this initiative as a strategy to accelerate economic development in borders of Talaud.

Expansion of Air Linkages


O

Mindanao Updates 17

BIMP-EAGA Directives The Informal Senior Officials Meeting (ISOM) was conducted on 14-15 April 2005 in Kota Kinabalu, Sabah, Malaysia.

Among the major agreements reached during the Meeting are as follows:

BIMP-EAGA Roadmap to Development (CY 2005-2010) The Senior Officials (SOs) conformed to the goals of BIMP-EAGA within the 6-year period as stated in the draft roadmap. The ultimate goal of the roadmap is to narrow the “development gap” across and within the EAGA region, as well as that of the ASEAN 6. In order to achieve this, the immediate goal is to increase the level of trade, investment and tourism within and outside BIMP-EAGA. Nevertheless, the SOs suggested for a review of the strategic measures and set of priorities of the roadmap to make it more specific/doable and to clearly define its measurable/quantifiable targets. Thus, a BIMP-EAGA National Secretariats Meeting (NSM) is scheduled on 27-28 May 2005 in Manila in order to thresh-out this concern and, hopefully, firm-up the entire content of the roadmap. The said roadmap is due for approval during the 13th Senior Officials and 10th Ministerial Meeting (SOMM) on 05-06 September 2005 in Brunei Darussalam. It will later be presented during the BIMP-EAGA Leaders Summit in December this year.

Establishment of a Davao-Brunei Air Connection and Brunei Consular Office in Davao City

Brunei Darussalam confirmed its intention to establish a Davao-Brunei air linkage within the year, as well as set-up a consular office in Davao City some time November this year.


O

Mindanao Updates 18

On SME Development. Under the project’s implementation scheme, the Philippines will handle the production of poultry (chicken) products; Indonesia will supply production inputs (corn feeds); and Brunei Darussalam will handle the halal certification process and, together with Malaysia, market and export these products to the Middle East. A BIMP Poultry Corporation will be registered in Brunei to comply with SEC requirements. The first shipment of two (2) container vans is targeted to reach the Middle East within the year.

Status of Flagship Programs andProjects of the Clusters

On Joint Tourism Development and Transport/Infrastructure Development. A back-to-back meeting of the Transport Cluster and BEBC Tourism Cluster is scheduled on 14-15 June 2005 in Miri, Malaysia. The said Meeting will firm-up mechanisms that would sustain existing and new air and sea linkages within BIMP-EAGA, through extensive promotion and marketing, creation of tour packages, policy and infrastructure support measures, among others.

The SOs also adopted the BIMP-EAGA Nautical Highway as a priority project, which is hoped to expand the RORO system in the EAGA section.

Development Assistance Package from Donor Agencies. The ADB, AusAID and GTZ have continued to provide Technical Assistance (TA) programs for BIMP-EAGA. These programs include strengthening coordination among institutions and organizations (i.e., BIMP-FC, BIMP-EAGA Business Council and National Secretariats) in order to facilitate project implementation and monitoring, development of EAGA database system, improvement of SME Networking, strengthening of border security, among others.


Mindanao Updates 19

Operationalization of BIMP-FC


The member-countries affirmed their commitment of support to the operationalization of BIMP-FC, which would include financial and staff support.

Envisioned to be the BIMP-EAGA central secretariat, the BIMP-FC currently functions as a coordinating body between the BIMP-EAGA Senior Officials, National Secretariats, Clusters, Working Groups and non-member countries/organizations.

The following BIMP-EAGA workshops were also conducted on 17-22 March 2005, Pan Pacific Hotel, Kota Kinabalu, Malaysia, namely:

This workshop was aimed at coming up with specific programs and activities that would improve the marketing and promotions strategies of BIMP-EAGA as the dream destination of Asia.

Some of the highlights/major agreements of the workshop are as follows:

BIMP-EAGA Strategic Tourism Planning Workshop for Tourism Players 18-19 March 2005

• Focus on CAN (Cultural, Adventure and Nature Tourism) plus diving and golf in promoting the “Visit EAGA – Your Dream DestinaASIAN” concept;

• Establish a more favorable image and perception of EAGA among visitors through balanced media coverage and dissemination of success stories;

• Establish air services on priority EAGA routes for easy access to travel and destination connections by encouraging small airline companies to service the said routes; and,

• Strengthen partnership with tourism industry players in coming-up with tour packages, as well as other marketing and promotions activities.

GTZ BIMP-EAGA Project Planning Workshop, 20-23 March 2005. This activity identified specific programs/measures that would strengthen coordination mechanisms among institutions and organizations within BIMP-EAGA in which the assistance of GTZ shall be based.

The following are the work packages identified following the workshop sessions:

• Organizational development • BEBC Business Development Plan on Event Management;• Information Management (i.e. BEBC enhancement for income generation);• Finalization of the BIMP-EAGA Roadmap;• Strengthen capacity of BIMP-FC to facilitate decision-making (i.e. use of database on trade, TOURISM, and investment, evaluation of project proposal);• Strengthening of coordination functions (i.e. review of FC’s TOR/organizational structure);• Enhance cooperation between EAGA and ASEAN by addressing institutional issues concerning inter- country coordination; and,• Conduct studies (e.g. BIMP-EAGA within the framework of ASEAN’s FTA negiotiation).

Mindanao Updates 20

House Committee on EAGA Affairs Public HearingThe House Special Committee on BIMP-EAGA Affairs held its public hearing on 27 January 2005 at the MEDCo Conference Room, Davao City. The hearing served as a venue for a briefing and consultation among the P-EAGA/government implementing agencies as well as the business sector. It also served as a venue to initially deliberate the extension of the travel tax exemption to passengers originating from Mindanao and Palawan to any destination in BIMP-EAGA.

Other agreements of the Hearing are as follows:


• Committee unanimously moved to support HR 332 or the Extension of the Period of Travel Tax Exemption;

• Committee gave a motion that a portion of their Country-wide Development Fund (CDF) be allocated for BIMP-EAGA; and,

• Committee to follow-up with DOTC on the status of the funding request for the renovation of old Davao International Airport for the establishment of the BIMP-EAGA Trade and Convention Center.

13th MEDCo/11th BIMP-EAGA Anniversary Celebration

Carrying the theme “Enhancing Strategic Partnerships for a Stronger Mindanao,” this year’s celebration underscored MEDCo’s role in enhancing inter-agency coordination and strengthening public-private sector partnerships in the continuing efforts of effecting the socio-economic development and lasting peace in Mindanao. The activity highlighted the accomplishment and milestones of MEDCo and BIMP-EAGA and drummed up support for BIMP-EAGA and Mindanao initiatives towards the attainment of peace and development.

To commemorate milestone achievements and gains of MEDCo and BIMP-EAGA, activities such as the conduct of a motorcade, Mindanao/BIMP-EAGA Exhibit and Product Display, Mindanao/BIMP-EAGA Briefings, and the Philippine-EAGA (P-EAGA) Business Forum were organized.

The Jose Abad Santos Glan Sarangani – Cooperation Triangle (JAGS-CT) was launched on 13 August 2003 in Glan, Sarangani Province. The Cooperation Triangle is composed of the Municipalities of Jose Abad Santos and Sarangani of Davao del Sur and the Municipality of Glan under the Province of Sarangani. It aims to improve the socio-economic condition of the member-municipalities through cooperation and strengthening of trading linkages within and outside the area. Among the identified priority projects of the cooperation triangle include port development, internet connection and website development, tourism development, telecommunication development, acquisition of field level facilities and capability building, and road development.

Last 17-24 January 2005, the three (3) JAGS-CT Leaders led the JAGS-CT Trade Mission to Indonesia. The delegation successfully forged ties with the local governments of North Sulawesi and the Province of Gorontalo. The private sector representatives who joined the trade mission also received various business proposals from their counterparts.

Some of the major agreements reached during the Trade Mission are as follows:• JAGS-CT to supply agricultural products such as corn, bangus fry, coffee and extra virgin coconut oil to North Sulawesi;• Establishment of Technical Schools by our local Endonela Foundation in Gorontalo, Manado and Talaud;• Establishment of shipping linkages between JAGS-CT and Talaud; and,• Negotiations for joint venture activities on deep sea fishing which would allow Filipinos to fish in Indonesian waters.


PPORTUNITIES FOR MINDANAOOTProgram is the government’s commitment to

usher the rehabilitation of Muslim Mindanao with special attention to conflict-affected and potential conflict areas, and provide a venue for the concerned agencies to coordinate, consolidate and assess the overall peace and development initiatives in the target areas.

The Mindanao Natin Program, a component under Legacy Agenda #9 to support the task on Peace Building and Conflict Prevention, has the following reformulated components:

The Office of the Presidential Adviser on the Peace Process (OPAPP), in close coordination with MEDCo, continues to serve as the oversight agency and provide overall policy guidance and strategic directions for the implementation of Mindanao Natin Program. An Inter-Agency Meeting is scheduled in June 2005 to follow-up on the status of project implementation among the concerned implementing agencies.

Mindanao Natin

Mindanao Natin which was launched by PGMA on 24 April 2003 was implemented through the original 10-point development program, as follows:

1. Substantial implementation of the 1996 GRP-MNLF Peace Agreement

2. Comprehensive rehabilitation program on the clusters of Pikit-Pagalungan-Pagagawan and Carmen-Pres. Roxas-Damulog; and, the Triple SB (Siocon, Siraway, Sibuco, Baliguian)

3. Fielding of “SALAM” Soldiers to assist DSWD and NAPC on KALAHI, KALAHI-CIDSS, MBN and psycho-social and medico civic services

4. Livelihood support through micro and SME credit

5. Implementation of the rebel returnees program focused on values formation

6. Establishment of one-stop action centers for land documentation and titling programs

7. Education-Distance learning program through mobile techno-vans, demand driven skills training and scholarship program

8. Youth and culture-sensitive programs on sports, arts and entertainment

9. Implement community-scale quick gestation infrastructure projects

Prioritization and fast tracking of ongoing ODA funded projects

Mindanao Updates 21

REFORMULATED MINDANAO NATIN

a. Implementation of the RA 9054 in pursuit of GRP-MNLF Final Peace Agreementb. Rehabilitation of Conflict-Affected Areas in Mindanaoc. Health Developmentd. Education Developmente. Livelihood Support and SME Developmentf. Land Tenure Improvementg. Agri-Aqua Developmenth. Implementation of the Regional Economic Zone Authorityi. Infrastructure development for inter- connectivityj. Culture-based healing, reconciliation, and integration programs

Mindanao Updates 22

The Mindanao Investment Program (MIP) FY 2004-2006 is a compendium of priority projects and programs

for Mindanao in pursuit of the twin goals of peace and development. Extensive consultations with the LGUs, national line agencies, private sector and other stakeholders were conducted in the six regions of the island in order to come up with the MIP. The undertaking was made possible thru the concerted efforts of the MEDCo Secretariat, the Regional Development Councils (RDCs) and NEDA regional offices in Mindanao, the Regional Planning and Development Office, and the Regional Economic and Development Planning Board of the ARMM. Funding support was provided by the World Bank.

The MIP was launched in October 2004 during the 3rd Mindanao Working Group (MWG) Meeting at the Waterfront Insular Hotel, Davao City.

As of March 2005, donor agencies have shown positive indications to fund the following projects:

• Coastal Resource Management of Davao Gulf - SIDA (grant)• Detailed Engineering and Design of the Solid Waste Management

Project in Panabo City, Davao del Norte, and Mati, Davao Oriental - SIDA (grant)

• Poverty Mapping Project - ADB (grant)• Rights-Based Approach to Development - SIDA (grant)• Strengthening Institutional Mechanisms for BIMP-EAGA - GTZ

(grant)• BIMP-EAGA Institutional Assistance Projects and security-related

projects - AusAID

Other updates on donor interest to the MIP are as follows:

• ARMM proposals requested by JBIC• Discussions with British Embassy technical staff• Discussions with the Canadian Ambassador on projects promoting the

welfare of indigenous peoples• Discussions with JICA technical advisor on projects related to

information and communications technology (ICT), environmental protection, health, peace and security, and agriculture

• Discussions on projects focusing on ICT, agriculture, and tourism with the Saudi Arabian Ambassador during the KSA mission

• Endorsed by the 13th MinBizCon as part of the Mindanao Action Agenda

M i n d a n a o I n v e s t m e n t Program

In total, there are 147 programs and projects being implemented

in various parts of Mindanao, 17 committed programs and projects, and 85 programs and projects in the pipeline. New proposals in the MIP totaled 227, wherein 121 are supportive of the 10-Point Legacy Agenda of the Arroyo administration. Currently, the ODA database can be accessible online from the Mindanao section of MEDCo’s website (www.medco.gov.ph).

PPORTUNITIES FOR MINDANAOO

PPORTUNITIES FOR MINDANAO

Mindanao Updates 23

SME Development

The 3rd SME Development Cluster Meeting was hosted by Brunei Darussalam and chaired by the Philippines on 1-2 March 2005. The said meeting was attended by representatives from the public and private organizations involved in chicken production, seaweed growing and oil palm cultivation.

The following are the results/agreements reached during the said meeting: • Conduct a BIMP-EAGA Palm Oil Conference and BIMP-EAGA Seaweeds Conference

to be hosted by Malaysia and Philippines, respectively;• Organize a Palm Oil Council under the BEBC;• Signed a MOU to set-up a Joint Venture Corporation for the Halal Poultry Project to be

registered in Brunei Darussalam under the name “BIMP Corporation;” • Identified the National Secretariats of Brunei Darussalam and Indonesia as the focal

agencies for CIQS concerns; and,• BIM countries to consolidate CIQS rules, regulations and procedures and submit to

MEDCo on 2 August 2005 to come-up with a BIMP-EAGA CIQS Primer.

Development of Mindanao’s Halal Industry

The National Meat Inspection Service (NMIS) under the Department of Agriculture conducted a series of consultative conferences on some important developments in the government’s efforts for promoting the Halal food industry with various Islamic religious scholars, businessmen, and government officials in various regions in Mindanao during the first quarter of 2005.

The DA-Halal Food Industry Development Program, particularly the Conceptual Framework of an Agri-based Halal Industry Development Program, the Proposed Halal Industry Roadmap of the Philippines, and the Immediate Programs and activities of the HFIDC were presented during the consultations. Moreover, each region was able to identify a credible religious organization that will spearhead the Halal accreditation and certification process in their area.

The HFIDC has also coordinated with the Malaysian Embassy for the conduct of a Seminar and Exhibition of Malaysian Halal Food Products on 25-27 May 2005 at the Dusit Hotel Nikko and Malaysian Embassy in Makati City. The said seminar and exhibition shall explore the potentials of the Halal Food Industry in the Philippines and opportunities to export Malaysian Halal food products to the country. The seminar will be graced by Honorable Datuk Seri Haji Mohd Ali Rustam, President of the Malay and Islamic World and His Excellency Datuk Iskandar Sarudin, Ambassador of Malaysia to the Philippines.

Economic Sector

HALAL Industry

ONTINUING ADVOCACY EFFORTSC

Mindanao Updates 24

Social Sector

The Mindanao Studies Consortium Foundation, Inc. (MSCFI), is a Mindanao-wide organization composed of eleven (11) member-institutions coming from the academe, NGO, and government.

The long term vision of the MSCFI is to become a clearing house of ideas, resources, programs and projects related to the identification of possible solutions to issues and problems in Mindanao through research and policy studies.

Several ground works are required in preparation for this long-term vision. As a prelude, the group agreed to conduct the Mindanao Studies Project, which consists of three phases, as follows:

a. State-of-the-Art of the Mindanao Studies Research (Phase I) - a collection of information on the various studies/researches and/or scholarly works done on Mindanao in order to gain a perspective of the work that has already been done on Mindanao and map out the work that still needs to be accomplished. Status: The project was completed last 19 October 2004b. Publication (Phase II) – This stage involves content and copy editing of the output of the first phase and the production of hard bound and interactive CD-ROM copies of the research project. Status: The project already commenced last 4 Feb. 2005 and is expected to be completed by October 2005.c. Conferences (Phase III) –The results of the research project shall be presented in a national/international conference which will bring together scholars, peace advocates, policy makers and development workers to exchange views and perspective on the project.

Macro Sector

ONTINUING ADVOCACY EFFORTSCMindanao Studies Project

University of the Philippines in Mindanao (UP-Min); Ateneo de Davao University (AdDU); Mindanao State University-General Santos City (MSU-GSC); Notre Dame University (NDU); Western Mindanao University (WMSU); Mindanao Economic Development Council (MEDCo); Alternate Forum for Research in Mindanao; Mindanao State University-Marawi City (MSU-Marawi); Mindanao State University-Iligan Institute of Technology (MSU-IIT);Dansalan College Foundation, Inc. (DCFI); and University of Southern Philippines (USEP).

MEDCo Council

The MEDCo Council convened for their 8th Meeting on 22 April 2005 which highlighted the formal installation of the MEDCo members by Executive Secretary Eduardo R. Ermita. The meeting also served as a venue for the discussion of critical issues relating to Mindanao which require the Council’s action.

The meeting presented the Council’s mandate and current initiatives for Mindanao to primarily orient the MEDCo members on the Council’s role and update them on MEDCo’s development interventions for the island. A presentation by the OPAPP on the peace process updates supplemented the information presented during the meeting.

Among the agreements during the meeting were as follows:

1. Creation of the MEDCo-ExeCom comprising the following: a. MEDCo Chairman b. MEDCo Vice-Chairman c. MEDCo Secretary d. RDC/REDPB Chairs (with their respective Co-Chairs/Vice- Chair as alternates) e. Representative of the House of Representatives f. Private Sector Representative

2. Adoption of the Council’s vision, mission, goal and objectives

ONTINUING ADVOCACY EFFORTS

Mindanao Updates 25

ONTINUING ADVOCACY EFFORTSCMacro Sector

MEDCo Council

3. Source funds for the unfunded projects and assist in fast tracking the projects within the bureaucracy

4. Support the inclusion of the Gen. Santos City Port (Makar Wharf) and Polloc Port in the SRNH and of Balabagan, Lanao del Sur in the Roll-on Roll-off Terminal System (RRTS)

5. Study possibilities of increasing Mindanao’s budget share through the following:

a. Explore ways to urge the national government agencies to provide the regional breakdown for their programs, projects, and activities;

b. Explore the possibility for Congress to ensure that regional breakdown of programs, projects and activities of the agencies are presented in detail in the succeeding GAAs, instead of lumpsum statements;

c. Consider the devolution of the procurement process;

d. Consider the possibility of having another round of Mindanao Budget Summit (MBS); and

e. Conduct consultations on federalism, especially on its impact on Mindanao’s budget share in the event of a change in the form of government.

6. Explore possibilities of maximizing access to ODA sources by:

a. Speeding up application of projects in the pipeline for ODA funds;

b. Allowing LGUs to directly negotiate with ODA funds to finance revenue generating projects using sovereign guarantees or government bank guarantees as secondary guarantees whereby the project revenues will serve as the primary guarantee; and

c. Advocating for the ODA to provide equal opportunities not just for CAAMs but for all poverty-stricken regions.

7. Support the extension of travel tax exemption on passengers originating from Mindanao seaports and airports to BIMP-EAGA focus areas

Other media advocacy channels for Mindanao that continue to cater information and updates on development initiatives in the island include the following:

The Mindanao Business Talk (MinBizTalk), a TV program cum media forum held every 1st and 3rd Thursdays of the month.

MinBizTalk has already featured fifteen (15) topics this year, to wit:

the 10th Anniversary of the BIMP-EAGA and the Involvement of the Private Sector in the Sub-regional Economic Cooperation; Performance of the Tourism Sector in Davao City and the Davao Region; Preparations for the National Elections and their Impact on Southern Mindanao; State of Private and Public Education in the Region; Transparency and Accountable Governance; Lunay S’bung Expo in South Cotabato; 13th Mindanao Business Conference; 3rd Mindanao ICT Congress; 3rd ARMM Business Congress; Transparent and Accountable Governance Forum; 3rd Aquaculture Exposition; 75th Anniversary Celebration of Misamis Occidental; 1st SOCCSKSARGEN ICT Week; Ceremonial Signing of Memorandum of Cooperation between JAGS-CT and Bureau of Immigration; and 10th Caraga Business Conference.

Consistent with efforts to mobilize the said program to the different regions in Mindanao, all episodes during the second semester were shot on-location, particularly in areas where the events were held. Noteworthy is the MinBiztalk roadshow for the 13th MINBIZCON which covered on-site taping in Regions 10, 12 and 13.

Hataw sa Mindanaw, a 30-minute live news and talk programme aired over DXRP and held every Thursday. Hataw Mindanaw has already featured more than 40 topics for the year, including the Mindanao Exports Performance for the 1st Quarter of 2004; 2nd BIMP-EAGA Philippine Exhibition and Conference 2004; inaugural flight of the Puerto Princesa-Kota Kinabalu air route of Layang-Layang Aeropace; updates on the Mindanao National Initiative (Mindanao Natin); visits of the MS Area Teams to their respective areas of responsibility; Computer Literacy and Internet Connection (CLIC) program of the Growth with Equity in Mindanao (GEM); updates on the President’s Bridge Program Mindanao; First Semester Economic Performance; MTE Expo 2004 and BIMP-EAGA International Trade Fair; 13th MINBIZCON; Community Business Development Center’s Job Hunt 2004; 6th National Tuna Congress; Small and Medium Enterprises Development Week; e-SOCCSKSARGEN ICT week; 3rd Mindanao Working Group Meeting; and Governance Expo 2004.

Media Advocacy

About to mark its second year of broadcasting live Mindanao-wide discussions every Monday morning, Ugnayan Mindanao features key resource officials from the government and other personalities who expound on various development program and initiatives in Mindanao. The program, which also serves as a forum with government agencies on regional concerns of Mindanaoans, is regularly aired over nine (9) Mindanao PBS radio stations, seven RPN 9 and one (1) Radyo Ukay radio station.

Mindanao Updates 26

DVOCACY CHANNELSA

Ugnayan Mindanao (formerly Mindanao Scope)

DVOCACY CHANNELS

MS conducted the 3rd Mindanao Information Quiz Show on 19 December 2004 at NCCC Mall Atrium, Davao City. It was participated in by 12 selected high school students from all regions in Mindanao.

This year’s annual quiz competition intensified information dissemination efforts on Mindanao’s peace process, by highlighting basic questions on the island-region’s peace and development headways in addition to general information and current events about Mindanao and BIMP-EAGA economic cooperation.

Rex Baluyos, a fourth-year high school student of Ozamiz City National High School in Region X, emerged as the overall champion of the quiz show, followed by Anthony Sacabin of Lanao del Norte and Jessa Marie Ann Quijada of Surigao del Sur as second and third prize winners, respectively.

Mindanao Updates 27

Media Advocacy

DVOCACY CHANNELSANational, Mindanao and local dailies have consistently catered high-quality MEDCo press releases on Mindanao and BIMP-EAGA developments in their business/economy page. This year, a total of 731 MEDCo-generated and assisted news and photo releases were published, with an estimated 7,310 pick-ups in leading national and local newspapers that include Manila Bullettin, Businessworld, Today, Mindanews, GoldStar Daily, Sun.Star, Mindanao Times and Mindanao Daily Mirror.

MEDCo has undertaken other information dissemination activities by tapping private media outlets and fielding guests in their available programs as well as arranging coverage of news worthy events in the course of Area Team visits. Noteworthy are the guestings with Bombo Radyo for the 1st BIMP-EAGA Security Conference; the President’s Bridge Program; coverage of the M/V Rimbah Tujuh’s maiden voyage from Bitung Indonesia to General Santos City which was broadcasted over Good Morning Philippines; as well as the appearances of key government and private sector players in Mindanao in ABS-CBN News Channel and Breakfast TV programs for the MTE Expo 2004 and BIMP-EAGA International Trade Fair; 1st Davao Gulf Environment Summit; 6th National Tuna Congress; and 13th MINBIZCON.

Produced information materials and publications that support information and media advocacy efforts for Mindanao such as the Mindanao Review, a news round-up of Mindanao developments and vital economic indicators; Mindanao Investment Programme, a compilation of all priority programs and projects in Mindanao in the medium term; and MINDACOMNET’s Mindanao Scope Magazine. Copies of these materials are distributed to various clients as part of Mindanao information kit.

Launched Kalinaw sa Mindanaw, a 24-hour monitoring and action center for election-related incidents during the recently-held May 10 synchronized national and local elections. In partnership with the PIA and the Mindanao Communicators’ Network, Kalinaw sa Mindanaw was launched at the MEDCo Office. During the launch, PA Dureza and resource persons from the Commission on Elections, the PNP, and the AFP provided answers to frequently asked questions about the conduct of the said elections. The Kalinaw Mindanaw established two (2) hotline numbers to facilitate the exchange of queries, replies, complaints, and incident reports for the duration of the monitoring. An information network was likewise established between the Kalinaw Mindanao nerve center and the respective offices of the COMELEC, PNP, AFP, PIA, and DILG in order to address election-related incidents reported to the monitoring and action center.

Facilitated the conduct of the 6th Mindanao Communicators Network Congress and Workshop on 25-28 November 2004 at the Waterfront Insular Hotel, Davao City. The congress has successfully drawn out communication plans on on-going interventions supportive of the Arroyo administration’s affirmative actions for Mindanao espoused in her “Beat the ODDs” agenda.

A total of 217 government and non-government information officers and communicators from all across the six regions of Mindanao attended the three-day conference. The said congress served as a Mindanao-wide communications planning forum, which identified communication gaps, objectives as well as strategies in communicating the 10-point agenda.

3rd Info Quiz Show

Micro-Enterprise Access to Banking Services (MABS) Program (USAID)

This is an initiative designed by USAID to encourage the Philippine rural banking industry to significantly expand microenterprise access to banking services. A capability-building program, it provides training and technical assistance to rural banks to develop their capability to profitably provide financial services (loans and deposit services) to the microenterprise sector.

MABS started in Mindanao in 1998 and is expected to end in 2007.

Mindanao Updates 28

ONTINUING SUPPORT FOR MINDANAO’SPEACE AND DEVELOPMENTc

Industrial Development Programme for Income and Employment Generation in Mindanao (IDP) (UNIDO)

The IDP, originally scheduled to close on December 2004, was extended until end of June 2005. The program is now in its closing activities which include the production of an Abaca Manual, final documentation, and one on one interviews with the consortium members.

.

The GOP-UN / Multi-Donor Programme is a joint undertaking of the Philippine Government, the United Nations (UN), and the governments of Australia, New Zealand, the Netherlands, and Spain. The Programme started its implementation in March 1997-December 1997 for Phase 1 (Emergency Assistance & Needs Assessment Survey) and January 1998-June 2000 for Phase 2 (Expanded Phase for Emergency and Livelihood Assistance).

The valuable lessons that have been generated from these two (2) previous phases set the direction for the third phase which started in June 2001 and technically closed in June 2004. The programme aimed to strengthen the foundations for lasting peace and development in Mindanao through capacity development and confidence building at all levels of government and has played a significant role in providing assistance for the improvement of the living conditions and capacities of the MNLF combatants and their families, with the end goal of building peace in Mindanao as a whole.

Currently, a 5-year successor programme called Action for Conflict Transformation (ACT) for Peace, is awaiting final approval from NEDA. The Programme shall seek to achieve the following purpose of “strengthening peacebuilding efforts and sustain the gains for peace and development in Southern Philippines.” The Programme shall be implemented under the UN joint programming approach with MEDCo as the proposed overall lead implementing agency, in partnership with the ARMM Regional Government.

GOP-UN Multi-Donor Programme – Phase 3

The Programme, with funding support amounting to 3M Euros from the European Commission (EC) through the UNDP-EC Trust Fund, aims to address the rehabilitation and resettlement of at least 10,000 displaced families in Southern Philippines. The project is intended to complement efforts of the MDP3 and ongoing government programmes to ensure the provision of a comprehensive rehabilitation package for the IDPs.

Among the Programme’s accomplishments as of March 2005 include the following:

(1) Provided 18,720 displaced families with food and non-food packages;(2) Provided medical and dental services to 1,265 individuals;(3) Capacitated 239 participants in disaster preparedness and management and contingency planning

leading to the formulation of nine (9) disaster management plans;(4) Provided 241 core shelter units in Cotabato, Zamboanga del Norte, Maguindanao, Sulu and Basilan,

52 units of these have been completed;(5) Partnered with the Catholic Relief Services on distilling learning experiences from the experiences

in peace zones.

The programme is expected to end in July 2005.

GOP-UNDP Programme on Rehabilitating Internally Displaced Persons (IDPs) and Communities in Southern Philippines

Mindanao Updates 29

ONTINUING SUPPORT FOR MINDANAO’SPEACE AND DEVELOPMENTc

For more information, please contact:

The Mindanao Economic Development Council(MEDCo) Secretariat4th Floor, SSS Building, Bajada, Davao City, 8000 PhilippinesTrunkline: (63 82) 221-1345Telefax: (63 82) 221-8108, 221-8109 221-6929, 221-7060Email: [email protected]

Manila Office:Room 1-A, New Executive Bldg.Malacañang, ManilaTel. Nos. (63 02) 735-6092, 735-6057Telefax: (63 02) 735-6090

Visit us on the World Wide Web at:http://www.medco.gov.ph

mindanao as of may 2005 - map agribusiness and ......2005/08/23 · 7.3%. this was brought about by...

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