THE 2015 STATE OF THE NATION ADDRESS TECHNICAL REPORT · THE 2015 STATE OF THE NATION ADDRESS TECHNICAL REPORT ... Compliance by Government Agencies with Good Governance ... BPLS

THE 2015 STATE OF THE NATION ADDRESS

TECHNICAL REPORT

Prepared by: The Office of the President of the Philippines

TABLE OF CONTENTS

TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE

1. Institutionalized Public Accountability .............................................................. 1

2. Upheld Transparency and Citizen Engagement in Government .................... 11

RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH

1. Sustained Strong and Broad-Based Economic Growth ................................. 14

2. Increased Opportunities for Employment and Economic Activity .................. 24

POVERTY REDUCTION AND EMPOWERMENT OF THE POOR AND VULNERABLE

1. Invested in the Filipino Workforce for Decent and Productive Work .............. 44

2. Sustained Equitable Access to Affordable and Quality Health Care .............. 50

3. Empowered the Poor and Marginalized towards Self-Reliance ..................... 56

JUST AND LASTING PEACE AND THE RULE OF LAW

1. Protected our National Territory and Boundaries........................................... 61

2. Ensured Public Order and Safety .................................................................. 64

3. Pursued Efforts for Peace and Development in Mindanao ............................ 68

4. Advanced and Protected Human Rights ........................................................ 71

5. Reformed the Justice Sector ......................................................................... 76

INTEGRITY OF THE ENVIRONMENT AND CLIMATE CHANGE ADAPTATION AND MITIGATION

1. Ensured the Conservation and Protection of Natural Resources................... 77

2. Improved Adaptive Capacities of Communities ............................................. 79

3. Pursued Building Disaster Resilient Communities ......................................... 83

ANNEX: SELECT INFRASTRUCTURE PROJECTS UNDER THE AQUINO ADMINISTRATION

A. Completed and Ongoing Long-Delayed Projects

B. High Standard Highway Network

C. Airport Development Projects

D. Sea Port Projects

E. Mass Transit Systems

F. Flood Control Projects

G. HFEP-Funded Health Facilities

H. Major Hospitals for Modernization

LIST OF TABLES Table 1: Ranking per International Third Party Reports ............................................................................... 1 Table 2: Bottom-Up Budgeting (2013–2015) .............................................................................................. 11 Table 3: Household Consumption, Investment, and Manufacturing Growth and Share to GDP ................ 15 Table 4: Fiscal Performance ....................................................................................................................... 16 Table 5: IT-BPM Industry ............................................................................................................................ 22 Table 6: Infrastructure Budget as Percent of GDP ..................................................................................... 24 Table 7: Solicited PPP Projects per Administration .................................................................................... 25 Table 8: Select Tourism Road Projects ...................................................................................................... 30 Table 9: Selected Tourism Indicators ......................................................................................................... 31 Table 10: PH Tourism Accolades ............................................................................................................... 32 Table 11: Priority Irrigation Projects ............................................................................................................ 34 Table 12: Status of APTC Projects ............................................................................................................. 36 Table 13: Select Operational and Incoming Power Projects ...................................................................... 40 Table 14: Water Security Legacy Program Status ...................................................................................... 42 Table 15: Number of Out-of-School Children aged 5–15 in the Philippines ............................................... 46 Table 16: PhilHealth Benefit Packages ....................................................................................................... 52 Table 17: Final Findings of the 2014 Impact Evaluation of Pantawid Pamilya ........................................... 58 Table 18: Fund Releases for the AFPM/CUP ............................................................................................. 62 Table 19: Completed AFPM/CUP Projects (July 2010–July 2015)............................................................. 63 Table 20: Ongoing AFPM/CUP Projects ..................................................................................................... 63 Table 21: Select Projects Under the PNP Capability Enhancement Program ............................................ 65 Table 22: National Crime Situation ............................................................................................................. 66 Table 23: Status of the AFP/PNP Housing Program .................................................................................. 67 Table 24: Infrastructure Funding for Mindanao ........................................................................................... 71 Table 25: Select Economic Indicators in ARMM ......................................................................................... 71 Table 26: Unemployment Rates (2010–2014) ............................................................................................ 74 Table 27: Other Assistance to OFs ............................................................................................................. 74

LIST OF FIGURES Figure 1: Budget Distribution per Sector (2005–2015) ................................................................................. 2

Figure 2: Tax Effort (2010–2014) .................................................................................................................. 4

Figure 3: Dividend Contribution to Non-Tax Revenues (2001–2014) ........................................................... 7

Figure 4: Compliance by Government Agencies with Good Governance Conditions (2012–2014) ............. 9

Figure 5: Economic Growth......................................................................................................................... 14

Figure 6: Year-on-Year Inflation .................................................................................................................. 15

Figure 7: Debt-to-GDP Ratio ....................................................................................................................... 17

Figure 8: Interest Payments and NG Total Debt Service as a Percentage of Expenditure ........................ 17

Figure 9: Credit Rating History .................................................................................................................... 18

Figure 10: PSEi Record Highs .................................................................................................................... 19

Figure 11: Net FDI ....................................................................................................................................... 20

Figure 12: Share of PEZA-approved Investments per Administration ........................................................ 21

Figure 13: Share of BOI-approved Investments per Administration ........................................................... 21

Figure 14: International Tourist Arrivals ...................................................................................................... 31

Figure 15: Annual Palay Production (2001–2014) ...................................................................................... 33

Figure 16: Social Services Budget (2010–2015) ........................................................................................ 43

Figure 17: Social Pension Beneficiaries and Pensions Released .............................................................. 59

Figure 18: Budget Allocation for ARMM (2008–2015) ................................................................................ 70

Figure 19: Decreasing Number of OFs (2010–2014) ................................................................................. 73

Figure 20: Area Reforested (1986–2015) ................................................................................................... 78

LIST OF ACRONYMS 5Rs Right project, Right cost, Right quality, Right people, and Right-on-time project

implementation ACEL Association of Carriers and Equipment Lessors ACR All Case Rates ADB Asian Development Bank ADMATEL Advanced Device and Materials Testing Laboratory AEC ASEAN Economic Community AFP Armed Forces of the Philippines AFPM/CUP AFP Modernization and Capability Upgrade Program ALS Alternative Learning System APTC Agri-Pinoy Trading Center ARBs Agrarian Reform Beneficiaries ARGs Automated Rain Gauges ARMM Autonomous Region in Muslim Mindanao ASEAN Association of Southeast Asian Nations AWS Automated Weather Station AY Academic Year BBL Bangsamoro Basic Law BFAR Bureau of Fisheries and Aquatic Resources BFP Bureau of Fire Protection BHS Barangay Health Station BIR Bureau of Internal Revenue BJMP Bureau of Jail Management and Penology BLGF Bureau of Local Government Finance BOC Bureau of Customs BOI Board of Investments BOT Build-Operate-Transfer BPLS Business Permits and Licensing System BSP Bangko Sentral ng Pilipinas BUB Bottom-Up Budgeting BuCor Bureau of Corrections CAAP Civil Aviation Authority of the Philippines CAB Comprehensive Agreement on the Bangsamoro CALAX Cavite–Laguna Expressway CARP Comprehensive Agrarian Reform Program CARS Program Comprehensive Automotive Resurgence Strategy Program CBLA Cash for Building Livelihood Assets CCAM Climate Change Adaptation and Mitigation CCTV Closed Circuit Television CFW Cash-for-Work CHED Commission on Higher Education CIRS Crime Incident Recording System CLF Contingent Liability Fund CNN

CPP–NPA–NDF / Communist Party of the Philippines–New People’s Army–National Democratic Front

CNS/ATM Communications, Navigation, Surveillance/Air Traffic Management COA Commission on Audit COC Code of Conduct in the South China Sea CRRP Comprehensive Rehabilitation and Recovery Plan CSC Civil Service Commission CSE Crime Solution Efficiency CSO Civil Society Organization DA Department of Agriculture DAR Department of Agrarian Reform DBM Department of Budget and Management

DENR Department of Environment and Natural Resources DepEd Department of Education DILG Department of the Interior and Local Government DND Department of National Defense DOC Declaration on the Conduct of Parties in the South China Sea DOE Department of Energy DOF Department of Finance DOH Department of Health DOJ Department of Justice DOLE Department of Labor and Employment DOST Department of Science and Technology DOT Department of Tourism DOTC Department of Transportation and Communication DPWH Department of Public Works and Highways DRR Disaster Risk Reduction DRRM Disaster Risk Reduction and Management DSWD Department of Social Welfare and Development DTI Department of Trade and Industry e-CAR Electronic Certificate Authorizing Registration ECCT Expanded Conditional Cash Transfer EITI Extractive Industries Transparency Initiative EMSA European Maritime Safety Agency EO Executive Order ESA Emergency Shelter Assistance Program EU European Union EU GSP+ European Union Generalised Scheme of Preferences Plus FDI Foreign Direct Investment FDP Full Disclosure Policy FIR Fiscal Incentives Rationalization FishR Fisherfolk Registration System FIU Fiscal Intelligence Unit FMR Farm-to-Market Road FRIMP-CTI Flood Risk Management Project for Cagayan River, Tagoloan River in Misamis

Oriental, and Imus Rive FY Fiscal Year GAA General Appropriations Act GAARD GAA-as-Release-Document GCG Governance Commission for GOCCs GDP Gross Domestic Product GEC General Education Curriculum GMMA Greater Metro Manila Area GOCC Government-Owned and/or Controlled Corporations GPH Government of the Philippines GSIS Government Service Insurance System HEIs Higher Education Institutions HFEP Health Facilities Enhancement Program HOMA Home Materials Assistance HSH High Standard Highway IBPAP Information Technology and Business Process Association of the Philippines ICAO International Civil Aviation Organization ILO International Labour Organization IMF International Monetary Fund IRR Implementing Rules and Regulations IT-BPM Information Technology-Business Process Management IUUF Illegal, Unreported, and Unregulated Fishing JHS Junior High School JSCC Justice Sector Coordinating Council

KAANIB Kasaganaan sa Niyugan ay Kaunlaran ng Bayan KALAHI-CIDSS Kapit-Bisig Laban sa Kahirapan Program-Comprehensive and Integrated Delivery

of Social Services KEDP KAANIB - Enterprise Development Project LAD Land Acquisition and Distribution LDRRMCs Local Disaster Risk Reduction and Management Councils LGU Local Government Unit LiDAR Light Detection and Ranging LLEDP Laguna Lakeshore Expressway-Dike Project LM Lineal Meter LPRAP Local Poverty Reduction Action Plan LRA Land Registration Authority LRT Light Rail Transit MARINA Maritime Industry Authority MCP Maternity Care Package MCX Muntinlupa-Cavite Expressway MDG Millennium Development Goals MHEI Maritime Higher Education Institution MICC Mining Industry Coordinating Council MILF Moro Islamic Liberation Front MLC Management-Level Course MLD Million Liters per Day MMS Metro Manila Skyway MNLF Moro National Liberation Front MOA Memorandum of Agreement MRAI Minimum Required Annual Inspection MRT Metro Rail Transit MSMEs Micro, Small, and Medium Enterprises MT Metric Tons MWPs Most Wanted Persons MWSS Metropolitan Waterworks and Sewerage System NAIA Ninoy Aquino International Airport NBB No Balance Billing NBI National Bureau of Investigation NCDDP National Community-Driven Development Project NCR National Capital Region NDRRMC National Disaster Risk Reduction and Management Council NEA National Electrification Administration NEDA National Economic and Development Authority NGAs National Government Agencies NGOs Non-Governmental Organizations NGP National Greening Program NHA National Housing Authority NHTS-PR National Household Targeting System for Poverty Reduction NIPAS National Integrated Protected Areas System NLEX North Luzon Expressway NOAH Nationwide Operational Assessment of Hazards NPA New People’s Army NPS National Payroll System NQSS National Quality Standards System NSRP North–South Railway Project NTC National Telecommunications Commission O&M Operations and Maintenance OCD Office of Civil Defense ODA Official Development Assistance OFs Overseas Filipinos OFW Overseas Filipino Worker

OGP Open Government Partnership OMB Office of the Ombudsman OSYs Out-of-School Youth PA Philippine Army PAF Philippine Air Force PAGASA Philippine Atmospheric Geophysical and Astronomical Services Administration Pag-IBIG (HDMF) Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno (Home

Development Mutual Fund) PAMANA Program Payapa at Masaganang Pamayanan Program PBB Performance-Based Bonus PBR Philippine Business Registry PCF Performance Challenge Fund PCG Philippine Coast Guard PCW Philippine Commission on Women PD Peritoneal Dialysis PDAF Priority Development Assistance Fund PDEA Philippine Drug Enforcement Agency PDRA Pre-Disaster Risk Assessment PEI Productivity Enhancement Incentive PES Performance Evaluation System PEZA Philippine Economic Zone Authority PHIC/PhilHealth Philippine Health Insurance Corporation PhilGEPS Philippine Government Electronic Procurement System PHIVOLCS Philippine Institute of Volcanology and Seismology PIDS Philippine Institute for Development Studies PN Philippine Navy PNP Philippine National Police POC Point of Care POEA Philippine Overseas Employment Administration PPP Public-Private Partnership PQF Philippine Qualifications Framework PSEi Philippine Stock Exchange Composite Index PWDs Persons with Disabilities RA Republic Act RATE Run After Tax Evaders RATS Run After the Smugglers RE Renewable Energy RHUs Rural Health Units RIPS Revenue Integrity Protection Service RS4LG Regulatory Simplification for Local Governments SEC Securities and Exchange Commission SEnA Single Entry Approach SEP Sitio Electrification Program SFDRR Sendai Framework for Disaster Risk Reduction SGH Seal of Good Housekeeping SGLG Seal of Good Local Governance SGP-PA Students’ Grants-in-Aid Program for Poverty Alleviation SHS Senior High School SLEX South Luzon Expressway SLP Sustainable Livelihood Program SMP Service Management Program SSC Significant Safety Concerns SSF Shared Service Facilities SSS Social Security System STAR Southern Tagalog Arterial Road STAR Program Store Training and Access to Resources Program STCW Standards of Training, Certification, and Watchkeeping

SUCs State Universities and Colleges SY School Year TB-DOTS Tuberculosis Directly Observed Treatment Short Course TESDA Technical Education and Skills Development Authority TIP Trafficking in Persons TPLEX Tarlac–Pangasinan–La Union Expressway TSeKaP Tamang Serbisyo para sa Kalusugan ng Pamilya TVET Technical Vocational Education and Training TWSP Training for Work Scholarship Program UAE United Arab Emirates UHC Universal Health Care UHCs Urban Health Centers UN United Nations UNICEF United Nations Children's Fund UPRIIS Upper Pampanga River Integrated Irrigation Systems US United States US-FAA US Federal Aviation Administration VOM Project Valenzuela-Obando-Meycauayan Project WEF World Economic Forum WELL Welfare, Employment, Livelihood, and Legal WHEC Weather High Endurance Cutter WLMS Water Level Monitoring System Z3R Zamboanga City Roadmap to Recovery and Reconstruction

THE AQUINO LEGACY OF GOOD GOVERNANCE When we assumed office in 2010, the country had been beleaguered by massive corruption that slowed down economic and social progress to the detriment of the people. We were known as the “Sick Man of Asia,” where our government had become unreliable, where economic growth was felt by a privileged few, where very few jobs were created, and where Filipinos were forced to take their chances in other countries. It is in this context that we forged a social contract with the Filipino people, a sixteen-point agenda that lays down the vision of the Aquino Administration in five priority areas of development—good governance, economic development, poverty reduction, peace and security, and climate change adaptation. Guided by Daang Matuwid, we aspired to transform our government from one that is self-serving to one that works for the welfare of the nation—that through honest and effective governance, we will be able to achieve inclusive growth, where Filipinos will be lifted from poverty and where no one will be left behind. Kung walang corrupt, walang mahirap. To this end, we put in place significant reforms in the bureaucracy that restored the public’s trust in our institutions and that created a climate of confidence and optimism. Economic growth veered away from a boom-and-bust performance cycle, allowing us to maximize the gains of our economic dividends. This allowed us to intensify our efforts to empower the poor and marginalized, to promote equitable access to affordable and quality health care, to capacitate our citizens to become a competent workforce, and to enhance their access to decent and quality work. We also took decisive steps toward attaining lasting peace and development in Mindanao and ensuring our territorial integrity. We likewise recognized the need to protect the environment and strengthen the resiliency of our people and communities from the effects of climate change. While we traveled far on the right path these past years and end this term with the country better than we found it, leaving behind irreversible reforms that shall sustain the gains of good governance, we recognize that we have only set the wheels of inclusive growth in motion. We hope that, to truly cement a better future for generations to come, Filipinos continue to demand nothing less but genuine public service from our future leaders who shall continue our legacy of good governance.

The 2015 SONA Technical Report Page 1 of 88

TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE To address longstanding problems in the bureaucracy and to regain the people’s trust in government, the Aquino Administration institutionalized significant reforms in the bureaucracy anchored on accountability, transparency, and participatory governance. These helped to curb corruption, improve the delivery of public services, and enhance the business and economic environment. 1. Institutionalized Public Accountability

In pursuit of its commitment to uphold the highest ethical standards in government and its obligation to deliver genuine public service, the Administration instituted reforms to strengthen accountability in the government by improving its processes and mechanisms and by relentlessly pursuing those who betrayed public trust for personal gain. These efforts led to the country’s improved rankings in various international third party reports.

Table 1: Ranking per International Third Party Reports

Third Party Report 2010 Latest Change

Transparency International Corruption Perceptions Index 134 85 (2014) +49

World Bank Ease of Doing Business 144 95 (2015) +49

World Economic Forum (WEF) Global Competitiveness Index 2014–2015 Basic Requirements Sub-Index Pillar 1: Institutions Pillar 2: Infrastructure

85

125 104

52 (2014) 67 91

+33

+58 +13

The Heritage Foundation Economic Freedom Index Sub-Category Freedom from Corruption

109

143

76 (2015) 95 (2015)

+33

+48

Sources: DBM, Transparency International, and The Heritage Foundation

Reformed the Budget Process

By plugging budget process leakages and improving resource utilization, we increased allocations for inclusive development programs. These programs focus on social protection and services, economic expansion and job creation, and climate change adaptation and mitigation.


Figure 1: Budget Distribution per Sector (2005–2015)

Source: DBM

Through the Zero-Based Budgeting Approach, government programs and projects were evaluated to ensure the efficient use of public funds. This resulted in the termination of programs that are no longer delivering expected outcomes. Beginning 2014, through the Performance-Informed Budgeting approach, the National Budget has presented the goods and services each agency commits to deliver alongside their budget. This ensures transparency and accountability in the budget process, enabling the public to better appreciate and monitor government agencies’ spending. With the early budget call as part of budget reform, the government consistently passed the National Budget for the fiscal years 2011 to 2015 on time, a marked departure from delayed and reenacted budgets of the past. By avoiding budget re-enactment, the government ensures transparency and limits the discretion of the Executive in using public funds. Also, through the GAA-as-Release-Document (GAARD) policy implemented since 2014, funds have been made available to agencies at the start of the fiscal year. Thus, on the first day of 2014 and 2015, 62 percent (P1.408 trillion) and 78 percent (P2.037 trillion), respectively, of the National Budget had been released.

Intensified the Fight against Graft and Corruption

The government ensured that erring government officials are held accountable by pursuing plunder and graft cases against them, including a former president, as well as three senators implicated in the alleged Priority Development Assistance Fund (PDAF) misuse. A former Chief Justice was impeached by the House of Representatives and convicted by the Senate for betrayal of public trust and culpable violation of the Constitution, while a former Ombudsman resigned from her post after the Congress voted to impeach her for alleged betrayal of public trust.

27% 27%28% 28%

29% 28%

34%

32%

36%

37% 37%

18%

21%

25%

27%28%

26%

23%

27%26% 26%

27%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Social Services Economic Services


Since July 2010, a total of 710 cases have been filed against tax evaders, smugglers, and erring government officials and employees:

Under the Run After Tax Evaders (RATE), a total of 380 tax evasion cases were filed before the DOJ and courts, with total tax liability of P68.52 billion. The cases include those against a former Chief Justice and a former member of the House of Representatives.

Under the Run After the Smugglers (RATS), a total of 201 smuggling cases were filed before the courts, with total duties and taxes of P26.02 billion. Cases include those filed against personalities for the smuggling of steel bars, sugar, various medicine, and rice, among others.

Under the Revenue Integrity Protection Service (RIPS), a total of 84 cases were filed before the Ombudsman against erring revenue personnel, while 41 cases were filed before the Civil Service Commission, and 4 cases were endorsed to the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) for the filing of formal charges. A total of 383 personalities were investigated, 136 were charged, 15 were dismissed from service, 2 had their benefits forfeited, 4 were fined, 16 were suspended, 2 were reprimanded, 4 were criminally fined, and 1 was imprisoned.

Aside from pursuing corruption cases, the government is also pushing for a law to curtail the perpetuation in public office of political families, which discourages more Filipinos from taking part in political and economic processes. This is to help ensure a level playing field where a culture of accountability and integrity flourishes in place of nepotism and patronage.

The government also focused on reforming institutions that had long been considered breeding grounds of corrupt public servants. With the slogan “Uproot Corruption, Reboot Customs,” the BOC Reform Project aims to jumpstart a virtuous cycle of integrity and genuine public service in the agency. Aside from appointing new Deputy Customs Commissioners, the BOC issued a call-to-mother-unit order so that personnel previously reassigned to other units for dubious reasons return to their original work stations and perform functions according to the stated duties and responsibilities of their positions. The post-entry audit functions1 of the BOC were also transferred to the DOF Fiscal Intelligence Unit (FIU) to provide a check in the transactions of the BOC. Thus far, the Commissioner of Customs, upon the FIU's final audit reports and recommendations, has issued collection notices to 23 importers of resins, iron, and steel, where estimated deficiency duties and taxes to be levied amount to P2 billion. The Bureau also published in its website the import duty reports to inform the public of the correct

1 Conduct of audit examination, inspection, verification or investigation in accordance with the set policies,

guidelines, manuals, and standard operating procedures of commodities that entered the ports


duties and taxes they should pay, as well as the masterlist of regulated imports for easy reference of appraisers, examiners, and import entities. To help reduce customs fraud and smuggling, the BOC sped the inspection of incoming cargo and facilitated the detection of erroneously labeled goods by installing x-ray machines in key entry ports in the country (e.g., Ninoy Aquino International Airport and the Manila International Container Port). For 2014, this initiative generated P30.47 million in additional revenues from the proper payment of undervalued goods, while for the period January to July 2015, it generated P32.86 million in additional revenues.

To further promote transparency, the DOF, with its attached bureaus, the BOC, the BIR, and the Bureau of Local Government Finance (BLGF), launched the Tax Watch campaign in 2012. Through this campaign, tax information on key products and tax compliance of corporations and professionals were made public through television commercials, newspaper advertisements, and the Pera ng Bayan website (www.perangbayan.com). Other campaign programs are the Register, File, and Pay,2 Angat Pa, Pinas,3 and Customs ng Bayan (www.dof.gov.ph/customsngbayan).4

The anti-corruption and transparency efforts in revenue agencies contributed to an improved tax effort,5 from 12.1 percent in 2010 to 13.6 percent in 2014, or a P156.6-billion average annual increase in tax collections for the said period. This was achieved without imposing new taxes, except the reforms in the Sin Tax Law.

Figure 2: Tax Effort (2010–2014)

Source: DOF

2 A tax awareness campaign launched in 2014 with the theme, “I Love the Philippines, I Pay my Taxes Right. It’s

as Easy as Register, File & Pay.” 3 Launched in February 2015, it calls for greater cooperation among Filipinos to pay their taxes as their contribution

to nation-building. 4 A web portal of data and information on customs importation, which also features regular updates on trade activity

in each of the 17 main collection districts of customs and reports on certain sensitive commodities, such as motor vehicle and rice

5 The total tax collection as a percentage of GDP

2010 2011 2012 2013 2014

Tax Effort 12.1 12.4 12.9 13.3 13.6

BOC 2.9 2.7 2.7 2.6 2.9

BIR 9.1 9.5 10.0 10.5 10.6

Target, Tax Effort 13.9 13.1 13.3 13.5 14.7

0.01.02.03.04.05.06.07.08.09.0

10.011.012.013.014.015.016.0

Pe

rce

nt


From its highest recorded revenue in the previous administration of P778.58 billion in 2008, the BIR collected P1.058 trillion in 2012, the first time in history that the agency breached the trillion-peso mark. Subsequent years’ collections were also above P1 trillion—P1.216 trillion in 2013 and P1.334 trillion in 2014. The target collection for 2015 is P1.674 trillion. The BOC collection, meanwhile, was able to grow by 21.1 percent year-on-year in 2014 versus 5.2 percent before the President's Customs Reform Program was launched in late 2013.

To eliminate distortions in the country’s tax structure, which takes away billions of pesos that could be used to improve the country’s fiscal position and fund social services, the government is pursuing the passage of the Fiscal Incentives Rationalization (FIR) Act. The bill, currently pending before Congress, aims to provide a uniform and time-bound set of tax incentives to be offered by all investment promotion agencies, and repeal special laws with provisions on tax incentives for specific sectors or industries that are irrelevant.6 Moreover, no incentives shall be automatically granted. Tax incentives cost the government at least 1.5 percent of GDP in 2011, or around P144.301 billion. Noting this, the IMF deemed the current Philippine incentives regime "very generous" and "unnecessarily complex." Rationalizing and harmonizing major investment incentives laws will level the investor playing field, create tighter tax administration, and promote competition based on transparent and uniform tax regimes of investment promotion agencies. Together with the FIR, the Tax Incentives Management and Transparency Act is also pending before Congress and is being pursued to promote transparency and accountability in granting tax incentives to business entities, private individuals, and corporations. Congruent with the government’s goal to effectively deliver public service, the DPWH continues to implement the 5Rs (right projects, right cost, right quality, right people, and right-on-time project implementation) approach in identifying and procuring projects. Through this approach, the number of bidding requirements was reduced from 20 to 5 documents, collusion among bidders was curbed by removing the requirement to submit a Letter of Intent, and the electronic bidding (e-bidding) system was piloted in its Central Office.

Through these reforms, the government benefited from increased competition among bidders. It enabled the DPWH to save P48.55 billion from July 2010 to May 2015, which was used to fund additional roads, bridges, and flood control and disaster-related rehabilitation projects.

The government also introduced sweeping reforms in the government corporate sector to check past excesses and financial mismanagement. In 2011, the President signed into law the GOCC Governance Act (RA 10149), which created the Governance Commission for GOCCs (GCG), an oversight and policy-making body for GOCCs.

6 Tax incentive positions refer to tax breaks given to qualified investment projects.


Under the GCG’s oversight, reforms were implemented toward professionalizing board governance. In 2012, the GCG adopted the Fit and Proper Rule, which set the standards of integrity, experience, and education, among others, to determine whether an individual is qualified to be a Board Director and/or a Chief Executive Officer. GOCC boards also stopped granting allowances and bonuses without obtaining the proper approval from the Office of the President. Compensation in GOCCs also shifted toward promoting performance-driven organizations. In 2013, the GCG started implementing the Performance Evaluation System, which uses Performance Scorecards of every GOCC as basis for granting the Performance-Based Bonus to officers and employees and the Performance-Based Incentives to appointive directors.7 The GCG also rationalized the government corporate sector, reducing the number of GOCCs from 140 in 2011 to 102 as of June 2015 through abolition, privatization, and deactivation of poor- or non-performing GOCCs. These efforts yielded concrete results. Total GOCC dividends remitted from July 2010 to June 2015 amounted to P131.86 billion, 8 higher than the P127.51 billion total collections from 1995 (when RA 7656 or the Dividends Law was first implemented) until June 2010.9 The overall profitability of the entire GOCC Sector (which includes GOCCs that are prohibited from remitting dividends such as SSS and GSIS) has also improved as its revenues increased from P641.46 billion in 2010 to P908.73 billion in 2014.10

Government efforts to reform the sector also resulted in the almost doubling of dividend contribution to non-tax revenues, from an average of 7.57 percent during the previous administration to 13.59 percent during this Administration.11 This allowed the government corporate sector to significantly contribute to the overall government revenue effort.

7 The GOCCs that garnered a score of 90 percent or more in the Performance Scorecard passed the GCG’s

evaluation and were therefore authorized to receive the Performance-Based Bonus. Moreover, only the Boards of the GOCCs that successfully passed the evaluation were eligible to apply for the Performance-Based Incentives.

8 This is higher than the P84.18 billion collections from January 2001 to June 2010. 9 While RA 7656 was enacted in 1993, the IRR was issued in 1994 and took effect for 1994 net income (1995

dividend remittance). However, values included in the total collections cited here are from 1995 to June 2010, since the 1994 remittance was still governed by EO No. 399, s. 1990 (Increasing the Rate of Cash Dividends to be Declared by Government Owned or Controlled Corporations Subject to Certain Exceptions).

10 GCG adopted the formula to net out subsidies and unrealized gains/losses beginning CY 2012. 11 Data as of end-December 2014


Figure 3: Dividend Contribution to Non-Tax Revenues (2001–2014)

Source: DOF

Institutionalized Good Governance Practices Good governance practices were institutionalized in the LGUs by incentivizing good performance. In 2011, the DILG started the Seal of Good Housekeeping (SGH), an innovation intended to reward LGUs with exemplary performance in their internal housekeeping, particularly in fiscal management. In January 2014, the SGH was expanded and renamed the Seal of Good Local Governance (SGLG), which added business-friendliness, disaster preparedness, social protection, and effective peace and order policies in the assessment criteria.

LGUs conferred with either the SGH or the SGLG are eligible to receive assistance from the Performance Challenge Fund (PCF) for projects related to local economic development, disaster risk reduction and management, ecological solid waste management, and the Millennium Development Goals. Since 2010, the PCF has released to qualified LGUs12 P2.56 billion, which funded a total of 2,13513 local development projects, such as the construction of public markets, drainage systems, and transport terminals. The PCF assistance is indicative of how LGUs’ good governance practices can be translated to local economic development. For instance, through PCF, the Municipality of Anilao in Iloilo was able to construct a Shrimp Paste Processing Center, which contributed to an increase in the LGU’s average monthly income by 700 percent, from P102,000 in 2011 to P816,000 in 2012.

12 Composed of 77 provinces, 141 cities, and 1,389 municipalities 13 Of these projects, 1,749 have been completed, while 386 are either ongoing or complying with administrative

requirements.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

Percentage to Non-Tax Revenue Arroyo (average) Aquino (average)


As part of the SGH and SGLG, LGUs started disclosing in 2010 their respective financial transactions through the Full Disclosure Policy (FDP), which requires the posting of financial documents14 in conspicuous places15 and in the FDP Portal (fdpp.blgs.gov.ph). At least 93 percent of LGUs nationwide complied with the FDP from 2010 to 2014.16

Professionalized and Motivated the Civil Service

To reinforce meritocracy in the public sector and to improve the delivery of its services, the government started implementing the Performance-Based Incentive System in 2012, under which agencies are rewarded with a top-up Performance-Based Bonus (PBB). Agencies are recognized and rewarded with the PBB based on their accomplishment of their overall commitments and targets, and their compliance with the following good governance conditions:17

Disclosure of financial transactions, budget utilization, and project and program implementation, among others, in their respective websites for public scrutiny through the Transparency Seal, in contrast to discretionary disclosure prior to 2010;

Posting of the Citizen’s Charter, as mandated by the Anti-Red Tape Act (RA 9485), which lists down the details of frontline services offered by an agency, such as step-by-step procedures, required documents, fees, processing time, and person/s responsible to improve services; and

Posting of bidding in the Philippine Government Electronic Procurement System (PhilGEPS)18 (philgeps.gov.ph) for government agencies’ requirements, such as goods and consulting services to civil works, to ensure transparency in government procurement, as well as quicker and more efficient delivery of public goods and services. The expanded coverage19 of and increased use20 of the PhilGEPS online portal increased the government’s cost savings from P29.93 million in 2010 to P65.17 million in 2014 on newspaper advertisements alone. From 2004 (a year after RA 9184 was passed) to June 2010, the annual average amount of awarded

14 Include annual budget report, annual procurement plan/list, statements of receipts and expenditures, quarterly

statement of cash flows, and the Internal Revenue Allotment utilization 15 In 2012, additional requirements for SGH were included, such as a) excellent or good performance rating in the

Anti-Red Tape Act Report Card Survey of the CSC; and b) compliance with RA 8551 (Government Procurement Act).

16 ARMM FDP implementation only began in 2012; hence, the universe for FDP in 2010 and 2011 only totals 1,591, while universe for FDP from 2012 to 2014 is 1,714.

17 In 2013, the Statement of Assets, Liabilities, and Net Worth (SALN) was included as among the good governance conditions. However, for the 2015 PBB, the SALN will only be used as a basis if a personnel from a qualified agency is eligible to receive the bonus.

18 As required by the 2003 Government Procurement Reform Act (RA 9184) 19 Including Virtual Store transactions and electronic functionalities (e.g., e-bidding, automatic bid notification,

electronic payment of fees and purchase of bid documents) 20 From an annual average of 152,684 notices posted from 2004 to June 2010, posting increased to an annual

average of 389,927 from July 2010 to June 2015.


contracts that went through PhilGEPS was only P41.14 billion. It increased to an annual average of P274.49 billion from July 2010 to June 2015.

Aside from noting the high compliance with governance standards, a 2014 World Bank study on the PBB implementation21 affirmed that it improved management practices in government offices. The study showed that PBB encouraged managers to foster teamwork, become more diligent in setting performance targets and in monitoring accomplishments, and work on building trust within the unit.22 To further motivate employees to be more productive, on 15 May 2015, the President approved23 the release of the Productivity Enhancement Incentive (PEI) to government personnel of agencies that have exceeded financial and operational targets for the year.24 The incentive was allotted a total of P30.6 billion from the National Budget, of which P27.2 billion has been released to 59 agencies as of 09 July 2015. Enhanced Frontline and Regulatory Processes

The government simplified start-up business processes to help ease doing business in the country. Philippine Business Registry (PBR) kiosks or tellers were set up in 96 DTI regional and provincial offices and in 1025 other strategic locations, rendering unnecessary the physical visits to different agencies to file business applications.

21 The study was conducted on 4,500 government officials in eight departments in FY 2013–2014. 22 World Bank, Philippines: Assessment of the Performance-Based Bonus Scheme, June 2014. 23 Through EO No. 181, otherwise known as the “Implementation of the Provisions of the FY 2015

General Appropriations Act (GAA) on the Grant of the FY 2015 Productivity Enhancement Incentive (PEI) to Government Employees”

24 Incentive grant is from P5,000 or one month basic salary, subject to conditions, such as accomplishment of FY 2014 Performance Targets for at least one strategic Major Final Output and posting of the Transparency Seal and Citizen’s Charter.

25 These are in: (1) Muntinlupa, (2) Batangas City, (3) Iloilo City, (4) Cagayan de Oro City, (5) Guimba, Nueva Ecija, (6) Talavera, Nueva Ecija, (7) San Jose, Nueva Ecija, (8) Quezon City, (9) Valenzuela, and (10) Sta. Maria, Bulacan.

Figure 4: Compliance by Government Agencies with Good Governance Conditions (2012–2014)

Note: The Transparency Seal was only implemented in 2011.

Source: DBM

88% 87%79%

94%94%89% 90%

96%98% 98% 95%99%

0%

20%

40%

60%

80%

100%

120%

Overall Transparency Seal PhilGEPS ARTA (Citizen's Charter)

2012 2013 2014


Processing of applications, which used to take four to five days, was reduced to 30 minutes. Since its inception in 2012, a total of 140,129 sole proprietors have benefited from registration through the PBR. In April 2015, the Securities and Exchange Commission (SEC) launched its ease of doing business reforms, including the Integrated Business Registration System that reduced the procedures from 16 to 6 steps, and shortened incorporation period from 34 to a maximum of 8 days. Incorporation at the SEC now includes registration with Pag-IBIG, PhilHealth, and SSS in a single step. In May 2015 alone, the SEC was able to process the application of 99.37 percent (1,572) of 1,582 corporations within one business day. Of the 1,572 applications, 1,518 applications (96.56 percent) were approved within eight hours, while 54 (3.44 percent) were approved within one business day. LGUs streamlined their Business Permits and Licensing Systems (BPLS) by simplifying multiple forms for business application and renewal to one single form with at most five approving signatories. This shortened the process from more than ten steps to a maximum of five and reduced the processing time from one to three months to one to three days. From June 2010 to March 2015, 83 percent or 1,363 (140 cities and 1,223 municipalities) out of the total 1,634 cities and municipalities have streamlined their BPLS, while the remaining 271 target to complete streamlining by December 2015. To complement BPLS reform, the government launched the Regulatory Simplification for Local Governments (RS4LG) Project. It provides standards not just for business applications and renewals but also for costs/fees and processes for required government applications across LGUs. From June 2013 to June 2015, 90 out of the 9326 targeted first class cities and municipalities nationwide have implemented the RS4LG. Of these, 6527 (72 percent) completed their regulatory simplification work, while 25 (28 percent) are in the process of completing the design of their reformed business permit systems, targeted to be completed by December 2015. To simplify the processes in registering a property, the BIR launched in May 2014 the electronic certificate authorizing registration (e-CAR) to electronically issue and validate certificates. The e-CAR initiative shortened the processing time from 14 days to 5 to 10 days and addressed issues of under or lack of payment as well as forgery of transfer certificates. In June 2015, the e-CAR system was linked with the Land Registration Authority (LRA), enabling verification of all real property transfers with BIR tax clearance certificates. As of July 2015, 271,787 e-CAR certificates have been generated and uploaded in the LRA database for verification before the release of titles.

26 The LGUs selected are among those with high business transactions registered and those first-class

municipalities that are capitals of their respective provinces. 27 Of these, 43 cities and municipalities have issued local executive orders to implement the reformed business

permitting system, while the remaining 22 are finalizing their respective local orders.


2. Upheld Transparency and Citizen Engagement in Government

The Administration institutionalized transparency and citizen engagement in government activities, making governance open, participatory, and responsive to local needs.

Engaged the Public in Government Affairs

The government continued to involve civil society organizations (CSOs) in determining needed services, particularly at the grassroots level, through the Bottom-Up Budgeting (BUB) Program, in place since 2013 to help pursue its poverty alleviation agenda. A total of P49.34 billion has since been allotted for the Program to implement 37,760 projects under the Local Poverty Reduction Action Plans of LGUs developed through CSO consultations. For FY 2015, 14,300 identified projects are being validated by various government agencies.28 Updates on BUB projects may be accessed by the public through the BUB portal (www.openbub.gov.ph).

Table 2: Bottom-Up Budgeting (2013–2015)

Year No. of

Participating Cities No. of Participating

Municipalities No. of Projects

Budget Allocation (in P billion)

2013 56 539 6,062a 8.39

2014 93 1,133 17,398b 20.05

2015 136 1,454 14,300c 20.90

Total 37,760c 49.34 a There was an increase in the number of projects in 2013 from 5,894 to 6,062 as, upon validation, some projects

were split. b In 2014, there were 19,533 approved projects; however, after validation, the number decreased to 17,398

because some of the projects were merged or discontinued, or no validation reports were received from 230 Municipal Local Government Operation Offices.

Sources: DBM and DILG

In recognition of its efforts to deepen citizen involvement in the budget process, the Philippines received the Gold Medal for the BUB during the inaugural Open Government Partnership (OGP) Awards held on 24 September 2014 at the UN Headquarters in New York City.

In addition, the government strengthened the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) Project. Poor communities are trained to design, implement, and manage local projects that they themselves identified, strengthening their participation in local governance.29 From July 2010 to June 2015, 5,986 sub-projects30 (e.g., water systems, school buildings, barangay health stations, access roads, drainage, and pre- and post-harvest facilities) were completed, benefiting almost 1.3 million households.

28 Of the total 37,760 projects placed under the BUB Program since 2013, 5,731 have been completed, 3,788 are

ongoing, 8,670 are in the pipeline, and 19,571 are still under proposal. 29 Innovations for Poverty Action, Impact Evaluation of the KALAHI-CIDSS: Baseline Report, January 2014. 30 This comprises 5,098 completed out of 5,597 target sub-projects from July 2010 to 2014 and 888 completed out

of 7,623 target sub-projects for 2015.


Based on the World Bank Impact Evaluation31 of the KALAHI-CIDSS, road-improvement and livelihood projects reduced transportation and production costs, and opened business and employment opportunities. As a result, “per capita consumption of poor households in KALAHI-CIDSS areas increased by about 12 percent.” The study also showed that “it had no impact on non-poor households,” indicating that KALAHI-CIDSS’ benefits are channeled to the poor and not captured by the local elites.32

The success of KALAHI-CIDSS led to its expansion into the National Community-Driven Development Project (NCDDP) in 2014, increasing community beneficiaries from 48 poorest provinces to 58 provinces, comprising 847 municipalities,33 including those affected by typhoon Yolanda. KALAHI-CIDSS NCDDP has a total allocation of P43.9 billion from 2014 to 2019, of which P17.5 billion has been earmarked in 2015 to implement 13,415 sub-projects in 672 municipalities.

Enhanced Public Access to Government Information

The government further engaged the public in its programs and processes by providing access to a wide range of documents and data via various government websites. These websites only previously showed organizational objectives and structure, regular reports and publications, now disclose the agencies’ approved budgets, disbursements, and corresponding targets—a measure never undertaken in past administrations. The National Government Portal (www.gov.ph) is the online Official Gazette, which is also the official journal of the Republic of the Philippines. It was launched in July 2010 as the premier platform for publishing official government documents, statements, and public announcements, and as the institutional memory of the Republic, in conjunction with the Presidential Museum and Library website (www.malacanang.gov.ph).

The Open Data Portal (data.gov.ph), launched in January 2014, also provides access to government information databases from various agencies, such as the National Budget, government procurement, extractives and mining industries, and customs collections. These can be viewed in simplified formats using infographics and other applications. Strengthened Control and Accountability in Government Operations

The establishment of the Treasury Single Account in 2013 enabled the government to consolidate the bank accounts of NGAs and select GOCCs. This allowed the government to better manage and monitor its funds and debt, facilitate more accurate

31 The study also noted concerns on sustaining empowerment and barangay governance impacts and effecting

improvements in municipal-level governance, among others. 32 World Bank 2013 Impact Evaluation of KALAHI-CIDSS using data collected in 2003, 2006, and 2010 in both

KALAHI-CIDSS and comparable non-KALAHI-CIDSS municipalities 33 Including 4th to 6th class municipalities with poverty incidence above the national average of 26.5 percent based

on the 2009 NSCB Small Area Estimates, and 1st to 3rd class municipalities with poverty incidence of 40 percent and above. These do not include ARMM municipalities.


accounting, and reduce transaction cost while increasing interest earned. It helped in reducing borrowings caused by perceived cash shortages arising from holding multiple government bank accounts and a fragmented system for handling receipts and payments. The Account is being maintained at the Bangko Sentral ng Pilipinas. In line with its efforts to increase transparency and reduce leakages, the government

piloted the Cashless Purchase Card System in the DBM and DND in 2014.34 The scheme eliminated petty cash advances and payments during procurement and recorded transactions in real-time on a secure web-based platform.

34 Phase I of the piloting in five AFP units concluded in October 2014, while the 2nd and 3rd phase of the pilot-testing

in 2015 will include Major Services, Unified Commands, and Key Budgetary Units. The purchase cards are currently being used in the DBM-Office of the Secretary and the Administrative Service in procuring goods, such as office and construction supplies, and medicine.


RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH Sound macroeconomic policies combined with reforms in governance made the country a viable investment destination. This resulted in the expansion of trade, increase in investments, growth of industries, and creation of quality employment opportunities for the people. 1. Sustained Strong and Broad-Based Economic Growth

Economic growth was sustained in the past five years, escaping the boom-and-bust cycle that characterized it for decades. This is due to the Administration’s prudent fiscal and monetary policies anchored on sound management principles, along with reforms in critical areas of governance. The growth was not fueled by debt, as evidenced by the continuing decline in fiscal deficit and debt as a percentage of GDP. It created more jobs as shown by the improving employment figures and declining numbers of the unemployed. These conditions led to an increased confidence from markets and businesses and improvements in the country’s competitive rankings and credit ratings. These also led to enhanced trade and increased investments, which will further sustain economic growth. Improved Growth Trajectory and Increased Market Confidence

Annual economic growth from 2010 to 2014 averaged 6.2 percent, the highest five-year average growth rate in nearly four decades. If GDP growth reaches at least 6.8 percent this year, average growth from 2010 to 2015 will be the highest six-year average growth since 1958. The country was recognized as the second fastest growing economy in 2015, next to China, out of the 57 countries surveyed by Bloomberg.

Figure 5: Economic Growth

Source: PSA

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Q1 Q2 Q3 Q4 2001-2009 average 2010-2014 average


The country’s economic growth in the last five years transitioned from being consumption-led to one that is increasingly driven by investments. Prior to 2010, the economy relied on household consumption in driving growth, as investment growth was close to zero. At present, with investor confidence restored, investments emerged as a strong engine of growth, expanding by 12.7 percent on average over the last five years. On the production side, the manufacturing sector is rapidly catching up as a major driver of growth, next to the services sector.

Table 3: Household Consumption, Investment, and Manufacturing Growth and Share to GDP

Growth (in %) Share to GDP (in %)

2005–2009 2010–2014 2005–2009 2010–2014

Household Consumption 3.8 5.3 72.3 69.7

Capital Formation (Investment) 0.4 12.7 18.0 20.8

Manufacturing 2.4 8.0 22.8 22.6

Source: NEDA

GDP per capita increased from P61,570 in 2010 to P71,726 in 2014, which shows that on a per capita basis, income has increased as the economy grew faster.

Average annual inflation from 2010 to 2014 was 3.7 percent, within the target range for each year during the period and lower than the 4.7 percent monthly average of the previous Administration. In June 2015, inflation eased to 1.2 percent, the lowest level in 20 years. A stable inflation environment makes it easier for investors to better plan their investments and for households and businesses to make better-informed decisions on their consumption, investment, savings, and production needs. It also promotes income equality by preserving the purchasing power of the poor who often do not have assets that allow them to hedge against inflation.

Figure 6: Year-on-Year Inflation (as of June 2015)

Source: PSA

The country remains well positioned to deal with global uncertainties. Gross international reserves, which serve as buffer against external shocks and risks, increased by 65.6 percent from US$48.70 billion as of end-June 2010 to US$80.64 billion as of end-June 2015, enough to cover 10.6 months of imports of goods and

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

Y-o-Y Lower-End Target Higher-End Target


payments of services and income.35 It is also equivalent to 6.1 times the country’s short-term external debt based on original maturity.

The banking system supported the expansion of economic activity by providing businesses with ample liquidity. The total loan portfolio of universal and commercial banks was at P5 trillion in May 2015, almost double the P2.7 trillion in June 2010. Moreover, the quality of lending improved as the non-performing loans36 ratio declined to 1.9 percent as of end-May 2015 from 3.2 percent as of end-June 2010.

These developments resulted in the Philippines being recognized in the Moody’s Banking System Outlook as one of the only two countries, along with Spain, with a positive overall banking system outlook out of 67 countries monitored,37 as of 23 July 2015. According to Moody’s, the Philippines’ banking system is characterized by improving operating environment, profitability, and efficiency; stable asset quality and capital; and stable funding and liquidity.

The fiscal deficit was maintained under programmed ceilings despite government’s increased spending from 2010 to 2014.38 It declined from P314.5 billion or 3.5 percent of GDP in 2010 to P73.1 billion or 0.6 percent of GDP in 2014.

Table 4: Fiscal Performance (in P billion)

2010 2011 2012 2013 2014

Programmed Deficit 325.0 300.0 279.1 238.0 266.2

Actual Deficit 314.5 197.8 242.8 164.1 73.1

Deficit as a percentage of GDP (%) 3.5 2.0 2.3 1.4 0.6

Expenditures 1,522.4 1,557.7 1,777.8 1,880.2 1,981.6

Revenues 1,207.9 1,359.9 1,534.9 1,716.1 1,908.5

BIR Tax Revenues 822.6 924.1 1,057.9 1,216.7 1,334.8

BOC Tax Revenues 259.2 265.1 289.9 304.9 369.3

Actual Obligations 1,473.0 1,580.0 1,829.0 1,998.4 2,019.1

GDP (nominal) 9,003.5 9,708.3 10,561.1 11,542.3 12,642.7 Note: Numbers may not add up due to rounding.

Source: BTr

As an illustration of prudent and effective management of liabilities, the government was able to reduce the country’s national government debt-to-GDP ratio to its lowest level of 45.4 percent in 2014 from 74.4 percent in 2004, the highest recorded debt-to-GDP since 1986, indicating an improved capacity to pay its debt.

35 Based on the 2011 IMF paper on “Assessing Reserve Adequacy,” commonly used standards for estimating

optimal GIR include: 1) three months’ worth of imports of goods and payments of services and income and 2) 100 percent short-term debt for one year.

36 Refer to past due loan accounts where the principal and/or interest is unpaid for 30 days or more after due date. 37 Includes both developed (e.g., USA, UK, and Japan) and emerging (e.g., China, Indonesia, and Thailand) markets 38 Figures are based on actual spending.


Figure 7: Debt-to-GDP Ratio

Sources: BTr and PSA

In 2014, the country’s interest payments as a share of expenditure was at 16.2 percent and is programmed to further decline to 13.1 percent in 2016, the lowest level since 1986. In addition, total debt service (principal amortization plus interest payments) as a percentage of government expenditure has been decreasing, reaching 26 percent in 2014, the lowest level since 1986.

Figure 8: Interest Payments and NG Total Debt Service as a Percentage of Expenditure

Note: 2015 and 2016 figures based on Budget of Expenditures and Sources of Financing

Source: DOF

58

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Interest Payments as % of Exp Total Debt Service as % of Exp


The country’s strong economic growth, coupled with improved fiscal management that led to moderate budget deficits and broadening fiscal revenue base, contributed to the Philippines’ first-ever investment grade ratings from three major credit rating agencies in 2013. In addition, in July 2015, the Japan Credit Rating Agency, Ltd. raised the Philippine’s credit rating from BBB to BBB+, the highest rating the country has ever achieved and just a notch away from the “A” category, making the country at par with India and ahead of Indonesia, Russia, and Turkey. JP Morgan notably cited the Philippines as the most-upgraded sovereign in the region in recent years. These improved credit ratings allow the government and the private sector to borrow at cheaper rates, lowering debt service and freeing up more resources that can be channeled to building better and resilient infrastructure, providing more and better social services, and creating jobs.

Figure 9: Credit Rating History

Source: DOF

Aside from improved competitiveness rankings and investment grade ratings, investor confidence is also reflected by the stellar performance of the Philippine Stock Exchange Composite Index (PSEi). Coming from the 3,000 level in July 2010, the PSEi breached the 8,000 level, closing at an all-time high of 8,127.48 points on 10 April 2015. The PSEi closed on an all-time high 119 times under this Administration. It was also the fastest growing index among select Asian indices39 from 2010 to 2014, based on the World Federation of Exchanges data. Notably, amid recent global economic headwinds, the PSEi was the only one among the stock exchange indices of ASEAN-5 member nations to post year-to-date gains, growing at 5.9 percent.40

39 These include the Nikkei 225 (Japan), Topix Index (Japan), SET Index (Thailand), Jakarta Composite Index

(Indonesia), NSE Nifty (India), BSE Sensex (India), Kuala Lumpur Composite Index (Malaysia), China SE Shanghai Composite Index (China), VN Index (Vietnam), China SE Shenzhen Composite Index (China), Straits Times Index (Singapore), Taiwan Taiex Index (Taiwan), Hang Seng Index (Hong Kong), and KOSPI Index (Korea).

40 As of 24 July 2015, year-to-date growth for the Straits Times Index (Singapore) was at -0.3 percent, FTSE Bursa Malaysia KLCI (Malaysia) at -2.3 percent, SET Index (Thailand) at -3.8 percent, and JSX Index (Indonesia) at -7.2 percent.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Moody's S&P Fitch JCRA Investment Grade

Baa1/BBB+

Baa2/BBB

Baa3/BBB-

Ba1/BB+

Ba2/BB

Ba3/BB-

B1/B+


Figure 10: PSEi Record Highs (as of 24 July 2015)

Source: PSE

Enhanced Exports and Expanded Markets

Exports grew by 20.6 percent from US$51.50 billion in 2010 to US$62.10 billion in 2014. To sustain this and to reduce vulnerabilities, the government is promoting the diversification of export products and markets. For instance, with the subdued demand for electronics as a result of the global economic slowdown, the government facilitated the diversification to non-electronic manufactures and agro-based and mineral export products, increasing their share to total exports from 40.9 percent in 2000 to 58.1 percent in 2014. The country also sought new markets for its exports. In 1998, the US was the top export market and accounted for 34.2 percent of total exports for the year. In 2014, Japan, the top export market that year, accounted for 22.4 percent of total exports followed by the US (14.0 percent) and China (13.6 percent). Currently, no single market holds a third of Philippine exports, shielding the economy from volatility. To further sustain growth, the government expanded the country’s trade links with developed and developing economies, and regional markets. In December 2014, the Philippines was included in the European Union Generalised Scheme of Preferences Plus (EU GSP+) List, a preferential tariff scheme granted to qualified developing countries that are committed to sustainable development and good governance. Currently the only ASEAN country to be included in the scheme,

the Philippines may now export more of its products to the EU at zero tariffs. This presents an opportunity for the Philippines to serve as a manufacturing hub for firms interested in the EU and the ASEAN markets through the ASEAN Economic Community. This will yield, based on an initial study made by DTI, a projected increase in exports to EU of EUR611.8 million (US$702.7 million41) in the next three years and translate to 267,587 jobs in agriculture and manufacturing.

41 Converted using Jan-Feb 2015 average rate of EUR1=US$1.148550

0

1000

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July 2010 July 2011 July 2012 July 2013 July 2014 July 2015

Record Highs Daily Close Peak


Increased Foreign and Domestic Investments Significant increases in investments were registered under this Administration. From US$1.07 billion in 2010, net foreign direct investments (FDI)42 reached US$6.20 billion in 2014, a 479-percent increase from 2010 and the highest ever recorded in the country’s history.

Figure 11: Net FDI (in US$ billion)

Source: BSP

As of June 2015, 46.8 percent or P1.38 trillion of P2.94 trillion of PEZA-approved investments since 1995, and 31.7 percent or P1.77 trillion of P5.59 trillion of BOI-approved investments since 1992, came in during this Administration. PEZA-approved investments during this Administration (July 2010 to May 2015) produced 624,874 direct employment or 51.8 percent of the total 1.2 million created by all PEZA-approved investments since February 1995. From July 2010 to June 2015, BOI-approved investments generated a total of 321,877 employment or 22.2 percent of the total 1.45 million generated by all BOI-approved investments since June 1992.

42 Net FDI is the sum of net equity capital (i.e., placements less withdrawals), reinvestment of earnings, and net

intercompany borrowings.

1.66

2.712.92

1.34

2.06

1.07

2.01

3.22

3.74

6.20

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Figure 12: Share of PEZA-approved Investments per Administration (in P billion)

Figure 13: Share of BOI-approved Investments per Administration (in P billion)

Source: DTI

Filipino investors’ confidence in the economy is remarkable, as shown by the increase in the investment promotion agency-approved investments from Filipino nationals in the first 18 quarters of this Administration (Q3 2010 to Q4 2014). Their investments reached P2.09 trillion, significantly higher than the P1.24 trillion approved during the 30 quarters of the previous administration (Q1 2003 to Q2 2010). Domestic investments were first tracked in 2003. Supported the Development of Key Industries and Enterprises The government gave full support to the development of key sectors that create the most number of jobs.

Among these is the Information Technology-Business Process Management (IT-BPM) sector where the Philippines is highly competitive. In the 2015 Tholons Top 100 Outsourcing Destinations Report,43 Metro Manila (NCR) remained the second top outsourcing destination behind Bangalore, India. Aside from Metro Manila, seven other cities44 in the country are part of the top 100. From 527,000 direct employees in 2010, the number of direct employees nearly doubled to 1.07 million individuals in 2014, while revenues more than doubled in the same period from US$8.9 billion to US$18.9 billion. By 2016, the industry is expected to employ 1.3 million individuals and generate revenues of US$25 billion.

43 The Tholons Top 100 Outsourcing Destinations Report is acknowledged by industry stakeholders as the de facto

ranking of outsourcing cities around the world. 44 These are Cebu City (8th), Davao City (69th), Santa Rosa City (82nd), Bacolod City (86th), Iloilo City (91st), Baguio

City (95th), and Metro Clark (98th).

326.011%

360.912%

876.430%

1,377.947%

Ramos (3 years and 4 months)

Estrada (2 years and 7 months)

Arroyo (9 years and 5 months)

Aquino (5 years)

2,052.737%

302.35%1,465.0

26%

1,774.232%

Ramos (6 years)

Estrada (2 years and 7 months)

Arroyo (9 years and 5 months)

Aquino (5 years)


Table 5: IT-BPM Industry

Actual Estimate Target

2010 2011 2012 2013 2014 2015 2016

Revenues (US$ billion)

8.9 11.0 13.2 16.1 18.9 21.3 25.0

Direct Employment (‘000)

527 640 777 918 1,070 1,190

1,345

Sources: DTI and IBPAP

Manufacturing is a key driver of employment, given its potential for innovation, value adding, forward linkage with services, and backward linkage with agriculture. The industry grew by 8 percent from 2010 to 2014, higher than the 3 percent from 2001 to 2009. Its contribution to the country’s GDP has also seen steady growth, from 22.2 percent in 2010 to 23.3 percent in 2014. In the first quarter of 2015, manufacturing accounted for 24 percent of GDP. From a decline of 32,000 in 2009, employment in the manufacturing sector increased annually by around 69,000 on average from 2010 to 2014.

Companies operating in the country produce high-value products. These companies produce aircraft components (e.g., Moog Controls Corp, B/E Aerospace, and JAMCO Philippines), electric tricycles (e.g., BEMAC Uzushio Electric Co., Ltd.), printers (e.g., Brother Industries, Canon, Epson, Funai), digital and media products such as cameras and its parts (e.g., Ricoh Imaging Products [Philippines] Corporation), and medical devices and equipment parts such as those used in in vitro diagnostics45 (e.g., Arkray Industry, Inc.). In addition, several companies are putting up facilities for the manufacturing of aortic catheters46 (i.e., Tokai Medical Products) and hemodialysis treatment devices (i.e., JMS Co., Ltd.).

As part of the Manufacturing Resurgence Program, the President signed EO No. 182 on 29 May 2015 to implement the Comprehensive Automotive Resurgence Strategy (CARS) Program to close the cost handicap47 that makes the Philippines uncompetitive in car manufacturing in ASEAN. It will provide fiscal support for the production and introduction of the enrolled models; manufacture of body shell assembly and large plastic assemblies of the model; manufacture of common parts and strategic parts not currently produced in the country; and establishment of Shared Testing Facility for vehicles and/or parts. It will also implement non-fiscal measures (e.g., government procurement, motor vehicle inspection system, and stronger prohibition of second-hand vehicle imports) to stimulate demand for locally-manufactured vehicles. Further, foreign companies are allowed to participate in the Program.48

45 These are tests that are usually performed in laboratories to detect diseases, conditions, or infections. These

include checking of blood and urine samples. 46 It is a long thin tube inserted in an artery or vein in one’s groin, neck, or arm, and threaded through blood vessels

to the heart to diagnose or treat cardiovascular conditions. 47 Estimated at US$1,500 for small car to US$1,800 for an Asian Utility Vehicle 48 There are two companies, Toyota and Mitsubishi, which have shown strong interest in participating in the

program. In fact, Toyota, in its one-millionth sales celebration last 09 July 2015, has announced that they will participate in the Program. However, the draft IRR is currently undergoing stakeholder consultation. The fiscal incentive side of the Program is yet to be implemented because of the necessity to have an IRR for its implementation.


The Philippines is currently the fourth largest shipbuilding country in the world after China, South Korea, and Japan, with a 2.3 percent market share, based on the combined Gross Tonnage (GT)49 of ships ordered in 2014. The arrival of foreign shipbuilders in the country, such as Hanjin, Keppel, and Tsuneishi, propelled the growth of exports of Philippine-made ships. Philippine shipyards are now building more ships of bigger tonnage capacities, such as bulk carriers, containers, and tankers.

Micro, Small, and Medium Enterprises (MSMEs) comprise a very important sector of the economy, accounting for 99.9 percent of total registered enterprises and providing jobs to 63.7 percent of the total employed in 2013. MSMEs employed 4.77 million individuals in 2013, 35 percent higher than the 3.53 million individuals employed in 2010. The government ensures that MSMEs have access to credit and technology to spur their growth and to maximize their potential in generating employment. Under the Magna Carta for MSMEs (RA 9501), banks are required to allocate 10 percent50 of their loan portfolio. For 2014, P396.2 billion was lent or a compliance ratio of 10.3 percent, P178.2 billion of which went to service the needs of micro and small enterprises while P218.0 billion went to medium enterprises.51

To provide MSMEs access to the technology needed to improve their products and services, the government launched the Shared Service Facilities (SSF) in 2012. As of 30 June 2015, 1,102 SSFs nationwide have assisted 83,165 MSMEs and other individual users. The DOST also established in 2012 the Advanced Device and Materials Testing Laboratory (ADMATEL), which removes the need for semiconductor and electronic enterprises to avail of testing services outside the country. From January 2013 to June 2015, ADMATEL serviced 118 companies and academic institutions and generated P9.2 million in revenues.

Institutionalized Reforms to Promote Competition The government also opened up sectors to further entice investments. In 2014, RA 10641 (An Act Allowing the Full Entry of Foreign Banks in the Philippines, Amending for the Purpose Republic Act No. 7721) was passed, further liberalizing the entry of foreign banks.52 This will promote greater competition through the introduction of new financial products and services, prepare the country’s banking system for the ASEAN financial integration, and help attract more FDI. As of July 2015, the Monetary Board has approved five license applications from foreign banks.53 For the aviation industry, the government implemented the Pocket Open Skies Policy (EO No. 29, s. 2011) to allow foreign airlines unlimited54 take-off, landing, and

49 An index measuring a ship’s overall internal volume, including enclosed spaces. 50 8 percent for micro and small enterprises and 2 percent for medium enterprises 51 Data available as of September 2014 52 RA 10641 allowed foreign banks to operate in the country through any of the three modes of entry: 1) purchase

up to 100 percent of the voting stock of an existing domestic bank; 2) invest in up to 100 percent of a new banking subsidiary incorporated under Philippine laws; and 3) establish branches with full banking authority.

53 These are Sumitomo Mitsui Banking Corporation (Japan); Shinhan Bank and Industrial Bank of Korea (Korea); and Cathay United Bank and Yuanta Bank (Taiwan).

54 Unlimited may refer to flight frequency, flight capacity, or aircraft type.


passenger conveyance rights to the country’s airports, except NAIA. The policy contributed to the increase in the number of foreign airlines operating in the country, from 43 in 2010 to 52 in 2014, providing passengers more choices and bringing in more seats for incoming tourists. New entrants include All Nippon Airways, Turkish Airlines, Xiamen Airlines, and Oman Air.

The Philippine Competition Act (RA 10667) was signed into law on 21 July 2015, two decades after being stalled in Congress, to level the playing field among firms, prevent economic concentration that control production, distribution, trade, or industry, and penalize all forms of unfair trade, anti-competitive conduct, and combinations in restraint of trade. It also establishes the Philippine Competition Commission55 as a central office that will ensure that competition laws are effectively enforced. RA 10668,56 which amended pertinent laws relative to domestic cabotage, was enacted on 21 July 2015. It allows foreign shippers for the first time to engage in the transport of cargo intended for import or export to/from domestic ports. This will enable the country to benefit from lower prices and greater efficiency brought about by open competition. For instance, with cabotage amendments, an exporter from Cagayan de Oro shipping cargo to Hong Kong will only need to pay a total of US$500 compared to US$1,264 at present.

2. Increased Opportunities for Employment and Economic Activity

To connect the country’s islands, bring produce to markets, reduce the cost of doing business and the prices of consumer commodities, and provide access to livelihood opportunities and social services, the government invested heavily on infrastructure.

Intensified Investments in Infrastructure The government more than tripled the infrastructure budget, from P165 billion in 2010 to P569.90 billion in 2015 or around 4 percent of GDP.57 For 2016, the proposed infrastructure spending is 5 percent of GDP or around P766.50 billion.58

Table 6: Infrastructure Budget as Percent of GDP

2010 2011 2012 2013 2014 2015

GDP (in P billion) 9,003.48 9,708.33 10,567.34 11,548.19 12,634.10 13,919.10

Infrastructure Budget (in P billion)

165.00 175.40 215.70 306.90 442.30 569.90

%GDP 1.83 1.81 2.04 2.66 3.50 4.10

Source: DBM

55 The current Office for Competition Policy under the DOJ shall be modified to only conduct preliminary investigation

and undertake prosecution of all criminal offenses arising under the act and other competition-related laws. 56 An Act Allowing Foreign Vessels to Transport And Co-Load Foreign Cargoes for Domestic Transshipment and

for Other Purposes 57 Based on low 2015 GDP assumption of P13,919.10 billion 58 Based on low 2016 GDP assumption of P15,743.78 billion


To further accelerate infrastructure development, the government invited private sector participation through Public-Private Partnerships (PPP), particularly in the design, planning, implementation, and maintenance of projects. To facilitate and monitor the implementation of the PPP program, the PPP Center was created in 2010. The Center has since been recognized as the “Best Central Government PPP Promoter” by the UK-based publication Partnerships Bulletin in 2014, the first of such recognition given to the Philippines and to a country in Southeast Asia. From December 2011 to June 2015, the government awarded 10 solicited59 PPP projects worth P189.02 billion60 to private sector partners, more than the 6 solicited projects awarded during the past three Administrations. As of 22 July 2015, there are 13 projects under bidding and 27 in the pipeline. In sum, the government has developed 50 solicited PPP projects with estimated investment requirements of almost P997 billion. The government is also undertaking two projects under unsolicited (i.e., MRT Line 7 and NLEX-SLEX Connector Road) and joint venture (i.e., Metro Manila Skyway Stage 3) modes.

Table 7: Solicited PPP Projects per Administration

Administration Awarded Projects

Fidel V. Ramos (1992–1998)

1. Database Infrastructure and Information Technology System 2. Southern Tagalog Arterial Road (STAR)

Joseph E. Estrada (1998–2001)

1. Civil Registry System 2. Land Tilting Computerization 3. Clark Water Supply and Sewerage

Gloria M. Arroyo (2001–2010)

1. Tarlac-Pangasinan-La Union Expressway

Benigno S. Aquino III (2010–present)

1. Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway) Project (Premium to the government: P925.01 milliona)

2. NAIA Expressway (Phase II) Project (Premium to the government: P11 billion)

3. PPP for School Infrastructure Project Phase I 4. PPP for School Infrastructure Project Phase II 5. Modernization of the Philippine Orthopedic Center Project 6. Automatic Fare Collection System Project (Premium to the

government: P1.09 billion) 7. Mactan-Cebu International Airport Passenger Terminal Building

Project (Premium to the government: P14.4 billion) 8. LRT Line 1 Cavite Extension Operation and Maintenance (O&M)

Project (Premium to the government: P9.35 billion) 9. Southwest Integrated Transport System Project 10. Cavite Laguna Expressway Project (Premium to the government:

P27.30 billion) a This includes P406.53 million paid to Alabang-Sto. Tomas Development, Inc. (ASDI) in April 2012 for advance

works.

Source: PPP Center

59 As provided by RA 7718 (BOT Law) and its IRR, solicited projects refer to projects identified by an Agency or

LGU as part of the list of priority projects. 60 This includes the P3 billion five-year O&M Cash Support for the Modernization of the Philippine Orthopedic

Center.


On 24 July 2015, the Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway) Project, the first awarded PPP project under this Administration, was opened to the public. The Project will reduce travel time between Cavite and Makati from 90 minutes to 45 minutes, benefiting 25,000 motorists per day. Moreover, for the first time in Philippine history, private sector proponents now provide the government premium payments to bag contracts, unlike in the past when the government provided subsidies and guarantees to entice private sector participation in build-operate-transfer (BOT) projects. Premium payments have so far amounted to P64.07 billion. In support of PPP, the government granted fiscal incentives to projects costing more than P1 billion and created the Contingent Liability Fund (CLF),61 from which funds will be drawn in case of government breach of its obligations under PPP contracts, thereby lessening regulatory risk for potential PPP investors. It also extended the Bangko Sentral ng Pilipinas Circular on Single Borrower’s Limit for PPP projects from December 2013 to December 2016 to allow any person, partnership or corporation involved in PPP to apply for loans of up to 25 percent of the net worth of lending institutions.62 The government is also working with Congress to amend the BOT Law to further enhance the legal and regulatory framework and to encourage more investments. In its April 2014 report, the Economist Intelligence Unit recognized the Philippines as the most improved country in the Asia-Pacific for PPP readiness as a result of “significant regulatory reform in recent years, new biddings and selection procedures, and better dispute resolution mechanisms.” As a result, the country is now deemed part of the “developed PPP markets group,” which includes the Republic of Korea, Japan, and India. The success of the Philippine PPP Program attests to investor confidence in the government as a reliable, competent, and trustworthy partner in the development of infrastructure projects. Improved Road Quality and Connectivity

Starting 2011, the DPWH increased the standard thickness of concrete pavement from 230 millimeters (mm) to 280 mm or 300 mm, for the same cost, for all national roads constructed. This will extend the service life of roads, reduce maintenance cost, and make the quality of the country’s national roads at par with international standards. As a result of this, the country’s ranking in the WEF’s Global Competitiveness Report on the quality of roads jumped from 114th in 2010–2011 to 87th in 2014–2015.

61 An amount of P30 billion has been included in the 2015 GAA for this purpose. The CLF is proposed to be

institutionalized in the proposed amendments to the BOT Law. 62 This is separate from the Single Borrower’s Limit for non-PPP transactions, which is also up to 25 percent of the

net worth of lending institutions.


The government is also pursuing the establishment of a High Standard Highway (HSH) Network, which allows the conveyance of high-traffic volumes at high speeds, in Metro Manila and within its 200-km radius, as well as in Metro Cebu and Metro Davao. Projects under the HSH include the Metro Manila Skyway (MMS) Stage 3, NLEX-SLEX Connector, and the C6 Expressway Phase 1. The MMS 3 will reduce travel time from Buendia, Makati City to Balintawak, Quezon City from 2 hours to 15–20 minutes. The NLEX-SLEX Connector will cut travel time between Clark, Pampanga and Calamba, Laguna from approximately 3 hours to 1 hour and 40 minutes. The C6 Expressway Phase 1 will provide an alternate route for motorists traveling between Parañaque and Quezon City without passing through EDSA or C5. Once the MMS 3 and NLEX-SLEX Connector are completed, motorists will have a high-speed direct route from the North and South Luzon Expressways without passing through Metro Manila’s thoroughfares.

For other parts of the country, the HSH includes the Tarlac-Pangasinan-La Union Expressway (TPLEX) and the Cavite-Laguna Expressway (CALAX), and the Laguna Lakeshore Expressway Dike (LLED). The TPLEX, when fully completed, will reduce travel time between Tarlac City and Rosario, La Union from 3.5 hours to 1 hour and will benefit around 20,000 travelers per day. The CALAX will reduce average travel time between CAVITEX and SLEX from 1 hour and 30 minutes to 45 minutes. The LLED, which will connect Bicutan, Parañaque, and Los Baños, Laguna, will reduce average time from 90 minutes to 35 minutes. The government also completed various long-delayed road and bridge projects. These include the following: The Aluling Bridge (conceptualized in 1978 and completed in March 2013), which

reduced travel time between Cervantes, Ilocos Sur and Tadian, Mountain Province from 1 hour to 30 minutes;

The Ternate-Nasugbu Road (conceptualized in 1994 and completed in January 2014), which reduced travel time between Manila and Nasugbu, Batangas via Tagaytay City from 4 hours and 30 minutes to 3 hours;

The New Lullutan Bridge (destroyed during typhoon Rosing in 1995 and completed in January 2015), which reduced travel time between Brgy. Calamagui 1st and Brgy. Lullutan in Isabela from 1.5–2 hours to 5 minutes; and

The Candelaria Bypass Road (conceptualized in 1998 and completed in 2012), which decongested traffic along the Maharlika Highway by 40 percent.

In addition, the Basilan Circumferential Road, whose construction started in 2000, is targeted to be completed in December 2015. Once the remaining works, including the 1.16 km approach road section and construction of the three new bridges (i.e., Bacung, Guiong, and Limbo Candis Bridges, which are 91 percent accomplished) are completed, the Project will reduce travel time around Basilan from 3 hours and 45 minutes to 2 hours.


Road and bridge projects were also completed ahead of target, which include the C-3 Road/Quezon Avenue Interchange (completed in September 2012; initial target: December 2012), the Plaridel Bypass Road Contract Package II-Phase 1 (completed in November 2012; initial target: February 2013), and the Tagumbao Bridge in Tarlac (completed in May 2014; initial target: June 2014). Other major road projects that are expected to be completed before the end of the Administration include:

The Lake Lanao Circumferential Road, which will connect Marawi City and 18 other municipalities63, will reduce average travel time between municipalities around Lake Lanao from 3 hours to 1 hour and 45 minutes, benefiting around 608,000 commuters. It is targeted to be completed in February 2016;

The Cotabato City East Diversion Road-Phase I, which will connect eight barangays and the municipalities of Datu Odin Sinsuat and Sultan Kudarat in Maguindanao and will cut average travel time going to and from Cotabato City from 50 minutes to 25 minutes, is targeted to be completed by April 2016; and

The Millennium Challenge Corporation-Assisted Samar Road Rehabilitation Project, which is targeted to be completed in April 2016, will link rural and urban areas in Samar and Eastern Samar provinces.

Enhanced Connectivity Infrastructure Investments in connectivity infrastructure enable the creation of gateways that improve access to tourist destinations. These include the Laguindingan Airport, which was opened as a Visual Flight Rules-only64 airport in June 2013, while its air navigation facilities were fully installed in November 2014. Nine other new airports are being constructed, including the Bohol and Bicol International airports. A total of 63 airports are being upgraded/rehabilitated, of which 17 are undergoing major works65 (e.g., NAIA Terminal 1, Mactan Cebu, Puerto Princesa, and Davao International Airports) while 46 are undergoing minor works.66 Equipment are being installed to allow take-off and landing operations at night in 7 provincial airports; and ports connected to 18 tourist spots are being developed/improved.

To ensure safe air travel, the government, through the Civil Aviation Authority of the Philippines (CAAP), instituted reforms to make the country compliant with international air safety standards. These include the May 2011 installation of the Civil Aviation Safety Oversight Reporting and Tracking System as CAAP’s database management system;67 continuing personnel development training; stricter regular

63 Ditsaan-Ramain, Bubong, Buadi-Puso, Molundo, Taraka, Tamparan, Masiu, Lumbayanague, Lumbatan, Bayang,

Binidayan, Pualas, Ganassi, Madamba, Madalum, Bacolod Kalawi, Balindong, and Marantao. 64 VFR is a flight wherein pilots must be able to fly the aircraft by looking outside the windows using visual references

(see other aircraft, terrain and obstacles). This is only permitted by air traffic controllers when there is adequate visibility.

65 Major works refer to those that will increase the capacity and capability of an airport and its operations (e.g., construction of new runways and passenger terminals).

66 Minor works refer to maintenance works on the airport and its existing facilities (e.g., rehabilitation of passenger terminal and runway asphalt overlays).

67 A collection of programs that enables users to store, modify, and extract information from a database


implementation of the Minimum Required Annual Inspection (MRAI)68 of all air operators since June 2011; and regular revalidation (every two years) of the Air Operators Certificate of airline operators. These reforms resulted in the resolution of the International Civil Aviation Organization’s (ICAO) Significant Safety Concerns (SSC) on the country’s civil aviation industry in March 2013.69 Following this, the US Federal Aviation Administration (US-FAA) reinstated the country’s Category 1 status in April 2014,70 and the EU lifted its ban71 on all Philippine air carriers in June 201572 (EU lifted the ban on PAL in July 2013 and Cebu Pacific in April 2014), allowing Philippine air carriers to expand flights to the US and operate flights to Europe. The EU delegation to the country noted that this was the first time that the entire aviation sector of one country was removed from the European Air Safety List. To enhance the safety, reliability, and efficiency of air traffic control systems, the government is also investing in the P10-billion Communications, Navigation, Surveillance/Air Traffic Management (CNS/ATM) System Project, which involves the installation of a satellite-based air traffic control system. The Project is expected to be completed by May 2016. To further enhance connectivity, the government also implemented, through DPWH and DOT, a Tourism Convergence Program. It invested a total of P60.4873 billion from 2011 to 2015 for 463 road projects, which is 338 percent or P46.69 billion higher than the P13.79 billion allocated from 2006 to 2010. An additional P24 billion is proposed for FY 2016. As of 30 June 2015, 1,549.59 km of tourism roads have been completed, 846.00 km are ongoing, 106.75 km are under detailed engineering/procurement stage, and an additional 1,200 km are proposed in 2016.

68 All air operators are required to undergo the MRAI before their licenses to operate (e.g., AOC) are renewed by

CAAP. 69 The ICAO noted SSC on Philippine civil aviation in 2009. 70 The US-FAA downgraded Philippine civil aviation to Category 2 (non-compliant) in 2008. 71 There are 21 countries with air carriers listed in the EU’s Air Safety List (e.g., Indonesia, Afghanistan, Kazakhstan,

and Nepal). Of these, there is a total ban (all air carriers certified by the country are banned from operating within the EU) for 17 countries (e.g., Afghanistan, Republic of Congo, Eritrea) while four countries have some air carriers which could operate in the EU (i.e., Indonesia, Angola, Republic of Gabon, Kazakhstan).

72 The EU banned Philippine air carriers from flying into its airspace in 2010. 73 P47.58 billion was funded under the DOT-DPWH Convergence Program, while the remaining P12.91 billion was

released from other DPWH programs from 2011 to 2015 (e.g., preventive maintenance, access to tourist destination).


Table 8: Select Tourism Road Projects Project Name and Description Status/Timelines

1. Island Garden City of Samal Circumferential Road, Phase I, Davao del Norte (P1.03 billion)

Construction, opening, and upgrading of the 31.9-km priority sections out of the total 96.30-km length of the provincial road in Samal, Davao del Norte

Tourism sites that will benefit: Pearl Farm Beach Resort, Tridacna Culture, and Samal Botanical Garden

66.04% complete as of June 2015; for completion in 2016

2. Access Roads to Donsol, Sorsogon

Pioduran-Donsol-Sta. Cruz Road (P985.70 million): Concreting of 26.5-km road section and construction of three bridges


Guinobatan-Jovellar-Donsol Road (P700.00 million): Construction/concreting of 24.90-km road

Tourism attraction that will benefit: Butanding Interaction Program


3. Ambangeg Junction National Road to Mount Pulag, Benguet (P165.00 million)

Concreting of 8.1-km section along the Gurel–Bokod–Kabayan–Buguias–Abatan national road

Will reduce average travel time between Ambangeg Junction National Road and Ranger’s Station from 1 hour to 30 minutes

Tourism sites that will benefit: Mt. Pulag and Kabayan Caves

56.36% complete as of June 2015; for completion within 2015

4. Access Roads to the Underground River, Palawan

Bahile – Macarascas – Sabang Road (P79.75 million): Rehabilitation of 3.75-km road;

Completed in November 2013

Salvacion – Sabang Stretch – Tapul Bahile Road (P40.57 million): Concreting of 1.85-km road

Tourism sites benefiting: Underground River, Mangrove Forest Tour, Sabang Zipline, and Ugong Rock Mountain

Completed in June 2012

5. Panglao Island Circumferential Road, Bohol (P1.03 billion)

Improvement/Concreting of 41.61 km of existing road

Travel time was reduced from 1 hour and 30 minutes to 1 hour

Tourism site benefiting: Panglao Island

Completed in 2014

6. Taytay-El Nido Road, Palawan (P1.13 billion)

Improvement/concreting of 44.60 km of road

Travel time from Taytay to El Nido will be reduced from 2 hours to 1 hour

Tourism site that will benefit: El Nido Island

95.78% complete as of June 2015, for completion in 2016

Source: DPWH

Due to the government’s investments in infrastructure and aggressive marketing of tourist destinations under the tourism branding campaign “It’s More Fun in the Philippines,” tourism activity greatly increased during this Administration. The country surpassed its initial 2016 target of 35.5 million domestic travelers five years ahead of schedule, with 37.5 million travelers in 2011 alone. This prompted the DOT to revise the 2016 domestic arrivals target to 56.1 million. In 2014, the recorded number of domestic travelers reached 54.6 million, already exceeding the 51.7 million target for 2015.


At the same time, international tourist arrivals grew at an average annual rate of 8.3 percent74 from 2010 to 2014, higher than the 6.7 percent75 from 2001 to 2009. Tourist arrivals from a single market (i.e., South Korea) reached a million for the first time in 2012.76 Average length of stay per visit also increased from 8 nights in 2010 to almost 11 nights in 2014, with average tourist spending per visit increasing from US$67277 in 2010 to US$1,10178 in 2014. Also, in 2014, average daily expenditure amounted to US$103.55, higher than the US$93 in 2012. The tourists spent most on accommodation, which accounted for around one-third of their expenditure.

Figure 14: International Tourist Arrivals (in millions)

Sources: NSCB and DOT

Direct employment in tourism-related activities increased from 4.13 million individuals in 2010 to 4.76 million individuals in 2014.79

Table 9: Selected Tourism Indicators

Actual Targets

2010 2011 2012 2013 2014 2015 2016

Gross Value Added (in P billion)

573.0 678.4 764.9 861.7 982.4 974.0 1,147.9

Share to GDP (%) 6.4 7.0 7.2 7.5 7.8 7.8 8.7

Direct Employment (in million)

4.1 4.3 4.6 4.7 4.8 6.3 7.4

Total Receipts (in P billion)

849.3 1,081.3 1,235.6 1,410.0 1,743.6 1,957.5 2,307.1

International 135.5 158.5 195.2 225.3 274.6 350.4 455.0 Domestic 713.8 922.8 1,040.4 1,184.7 1,469.0 1,607.1 1,852.1

Source: DOT

These efforts to support tourism development earned numerous citations for the country from various international organizations.

74 Computed using the formula for Compounded Annual Growth Rate (CAGR) 75 Computed using the formula for CAGR 76 Tourist arrivals from South Korea in 2012 reached 1.03 million. 77 Average length of stay (8.01 nights) x average daily expenditure (US$83.93) 78 Average length of stay (10.63 nights) x average daily expenditure (US$103.55) 79 This is based on preliminary estimates.

1.80 1.93 1.912.29

2.62 2.843.09 3.14 3.02

3.523.92

4.274.68 4.83

0.00

1.00

2.00

3.00

4.00

5.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Table 10: PH Tourism Accolades

Year Issuing Organization Accolade

2015 WEF 74th Place in the Travel & Tourism Competitiveness Index (from 94th Place in 2011)

2015 Trip Advisor Top 25 Beaches in Asia, 2015 Travelers’ Choice (White Beach and Yapak Beach in Boracay as 1st and 5th respectively, and Secret Lagoon Beach in Palawan as 16th)

2014 Condé Nast Travelera Top 30 Islands in the World (Palawan as 1st and Boracay as 12th)

2014 TTG Asia Media’s Travel Trade Publishing Group

Destination of the Year

2014 Warc 100b 3rd among the world’s best marketing campaigns (“It’s more fun in the Philippines”)

2014 Rough Guidesc One of the top 10 destinations

2014 Lonely Planetd One of the top 10 countries to visit in 2015

2014 Forbes Dumaguete as the 5th Best Place to Retire Around the World

2014 New7Wonders Foundation

Vigan as one of the New7Wonders Cities

a An international travel magazine b A global annual ranking of marketing campaigns based on performance, effectiveness, and strategy c A British travel guidebook and reference publisher d Publisher of travel books and producer of magazines, website, and travel products and applications

Source: DOT

Developed Mass Transit Systems for Public Transportation

To facilitate faster passenger movement and decongest traffic in highly urbanized areas such as Metro Manila and Metro Cebu, the government has been undertaking the development of rail and road transport projects. Within Metro Manila, the government is undertaking the Metro Rail Transit (MRT) Line 3 Capacity Expansion Project, which includes the procurement of 48 Light Rail Vehicles for completion by January 2017 (delivery of prototype by August 2015 and batches of three to four trains scheduled to arrive monthly starting January 2016); upgrading of ancillary systems (e.g., power supply) by December 2016; upgrading of the signaling system for completion by February 2016; replacement of rails for completion by March 2016; and rehabilitation of conveyance facilities for completion by the second quarter of 2017 (rehabilitation of initial 12 escalators by December 2015, with the remaining 32 elevators and 34 escalators by the second quarter of 2017). North of Metro Manila, projects to be undertaken include the North-South Railway Project (NSRP) North Line from Malolos, Bulacan to Tutuban, Manila and the MRT Line 7 from San Jose Del Monte, Bulacan to North Avenue, Quezon City. South of Metro Manila, rail projects include the LRT Line 1 South Extension from Baclaran, Pasay to Bacoor, Cavite, the NSRP South Line from Tutuban, Manila to Matnog, Sorsogon, and the South and Southwest Terminals of the Integrated Transport System, which will serve buses plying Laguna/Batangas and Cavite routes, respectively. East of Metro Manila, the LRT Line 2 East Extension project from Santolan, Pasig City to Masinag, Antipolo is also being undertaken.


For Metro Cebu, the government is undertaking the Cebu Bus Rapid Transit Project, which shall establish a transport system of around 176 buses that will run through dedicated and exclusive bus-ways from Bulacao to Talamban in Cebu City, with a link to Cebu’s South Road Property. The government is also pursuing the installation of the Automatic Fare Collection System for the LRT and MRT systems, which will replace the current magnetic stripe tickets with a contactless and integrated card for both single journey and stored value tickets. The system shall be fully operational by December 2015.

Continued Development of Agriculture To spur rural development and create opportunities to increase farmers’ income, the government invested in strategic agriculture infrastructure and modern equipment, implemented value-adding interventions for crops, and improved and created market access for agricultural products.

Investments in irrigation yielded a total of 164,230 hectares (ha) of new service areas generated in just four years (2011–2014), surpassing the 144,016 ha generated from 2001 to 2010. This allowed farmers to increase the number of cropping from once a year under a rain-fed system to at most five times every two years, contributing to the achievement in 2014 of the highest recorded palay production in the country’s history and increasing average annual palay production by 20.8 percent from 14.92 million metric tons (MT) from 2001 to 2010 to 18.03 million MT from 2011 to 2014.

Figure 15: Annual Palay Production (2001–2014)

Source: PSA-BAS, Volume of Crop Production To sustain increases in palay production, nine priority irrigation projects that will service major rice producing provinces are being undertaken. Among these are the long-delayed Balog-Balog Multipurpose Project–Phase II in Tarlac, the Jalaur River Multi-Purpose Project–Stage II in Iloilo, and the Malitubog-Maridagao Irrigation Project–Stage II in Cotabato and Maguindanao. When completed, these projects will result in a projected aggregate increase of 880,720 MT, bringing the total annual rice

12.9513.27 13.50

14.50 14.6015.33

16.2416.82 16.27

15.7716.68

18.03 18.4418.97

0

2

4

6

8

10

12

14

16

18

20

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in m

illio

n m

etr

ic to

ns (

MT

)


production from these areas to 1.8 million MT. This increase is equivalent to almost 25 days of national consumption.80

Table 11: Priority Irrigation Projects Project Name and Description Implementation Period

1. Balog-Balog Multipurpose Project – Phase II, Tarlac (P13.37 billion)

Will provide year-round irrigation to 34,410 ha in nine municipalities and in Tarlac City

Expected to increase annual rice production in the coverage area by 177.5% from 126,480 MT to 350,980 MT

The Project was conceptualized in 1988 and funded through a soft loan from the Italian government. However, implementation was delayed due to natural disasters and to a change in priorities of the lender. Project benefits include flood control and mitigation, inland fish production, and power generation through a proposed hydropower component. With a 50-year economic life spana and 641-year reservoir life,b it is expected to generate 73,000 jobs during construction and 30,000 jobs upon operation.

2015–2018

2. Jalaur River Multi-Purpose Project Stage II, Iloilo (P11.21 billionc)

Will provide year-round irrigation to 31,840 ha (9,500 ha of new areas and 22,340 ha of existing service areas) in Iloilo

Expected to double annual rice production in the coverage area from 141,945 MT to 287,958 MT and increase annual sugarcane production by 33.6% from 112,250 MT to 150,000 MT

The Project was conceptualized in 1960 with the enactment of RA 2651 (An Act Providing for the Construction of the Jalaur Multi-Purpose Project in the Province of Iloilo and Governing its Operation after its Completion). Construction of Stage I started in 1977 and was completed in 1982. Pre-construction of Stage II was originally programmed to start in 1987 but was deferred due to lack of funds.

2012–2018

3. Casecnan Multi-Purpose Irrigation and Power Project – Irrigation Component, Phase II, Nueva Ecija and Nueva Vizcaya (P5.44 billion)

Will service 19,341 ha of new areas in Nueva Ecija, 980 ha of new areas in Tarlac, and 40,000 ha of rehabilitated areas in the Upper Pampanga River Integrated Irrigation Systems (UPRIIS)


2012–2016

4. Malitubog-Maridagao (Mal-Mar) Irrigation Project, Stage 2, Cotabato and Maguindanao, (P4.94 billion)

Will service 9,784 ha of new areas in the municipalities of Pikit and Aleosan in North Cotabato, and Pagalungan and Datu Montawal in Maguindanao

Expected to significantly increase annual rice production in the coverage area by 415.0% from 19,568 MT to 100,775 MT

2011–2016

5. National Irrigation Sector Rehabilitation and Improvement Project (P4.01 billiond)

Will restore and rehabilitate irrigation service to 10,606 ha and 23,727 ha, respectively, in Ilocos Norte, Pangasinan, Pampanga, Quezon, Palawan, Iloilo, Bukidnon, Davao del Sur, Sultan Kudarat, and Agusan del Sur


2012–2017

80 Based on the 35,650 MT national daily rice requirement


Table 11: Priority Irrigation Projects Project Name and Description Implementation Period

6. Agno River Irrigation System Extension Project, Pangasinan (P2.63 billion)

Will restore and rehabilitate the Agno River Irrigation System and Ambayaoan-Dipalo River System

Will increase total service area to 12,894 ha from 3,936 ha


2015–2017

7. Umayam River Irrigation Project, Agusan del Sur (P1.40 billion)

Will service 6,729 ha of new areas in the municipalities of Loreto and La Paz in Agusan del Sur

Expected to significantly increase annual rice production in the coverage area by 2,248.6% from 1,790MT to 42,041 MT

2012–2016

8. Pasa Small Reservoir Irrigation Project, Isabela (P1.03 billione)

Will irrigate 900 ha of new areas and rehabilitate service to 80 ha, which will benefit 685 farmers’ households in the municipality of Ilagan

Expected to significantly increase annual rice production in the coverage area by 1,701.1% from 361 MT to 6,497 MT

2013–2016

9. Malinao Dam Improvement Project, Bohol (P651.46 million)

Will increase impounding capacity of the existing dam by 3.11 million cubic meters, sufficiently providing irrigation service to 740 ha of unserved areas in Bohol


2011–2016

a It will take 50 years to recover investment and for the dam’s dead storage level to be filled with sediments, which will reduce water discharge to the service areas. The design life of the dam structure is more than 100 years.

b It will take 641 years for the reservoir to be fully filled with sediments.

c ODA: P8.95 billion loan from the Korean Export-Import Bank d ODA: P3.42 billion loan from JICA e ODA: P936.0 million grant from the ROK Government through KOICA

Source: OPAFSAM

To modernize agricultural production and post-production processes, the government provided 21,943 units (P2.38 billion) of production machineries/equipment to approximately 13,746 farmers’ groups and 32,393 units (P1.44 billion) of postharvest machineries/equipment to 6,193 farmers’ groups from 2011 to 2014. A total of 5,770 (P6.6 billion) post-production facilities were constructed and are now being used by 5,770 farmers’ groups. These helped reduce losses from manual harvesting—post-harvest losses were reduced from 4 percent to only about 2 percent with the use of rice combine harvesters,81 and milling recovery was improved by 5 to 8 percent through multi-pass rice mills.82

To improve the productivity of the coconut industry, the government implemented various intercropping and product diversification projects (e.g., village-level coconut processing) under the Kasaganaan sa Niyugan ay Kaunlaran ng Bayan (KAANIB) Enterprise Development Project (KEDP). From 2011 to 2014, 28,000 farmers were covered by 799 KEDP sites (i.e., 16,670 ha) established and intercropped with cacao, coffee, banana, pineapple, vegetables, and other fruit-bearing trees. In addition, more

81 A machine that combines the basic harvesting operations of cutting, threshing, and cleaning. 82 A system that combines a number of milling operations (e.g., husk removing, polishing, grain separation), which

produce higher quality and higher yields of white rice.


than 16,000 farmers are recipients of the 316 community- and household-based processing facilities, which produce diversified, value-added coco products such as coco sugar and coir. These provide additional income to the coconut farmers. For instance, the annual income of farmers who intercropped with banana increased by an average of P52,855 per hectare from the P20,000 average annual income from traditional copra farming.

To complement efforts in the production side, the government invested in better quality infrastructure. From 2011 to June 2015, the DA and DPWH constructed83 a total of 1,985.81 km of concrete, climate-resilient farm-to-market roads (FMRs), which are not easily damaged by typhoons and flooding compared to the gravel FMRs constructed in the past. These projects connected 3,252 barangays to main road networks and markets, benefiting more than 630,000 farmers.

In addition, the DA, in coordination with LGUs, established seven Agri-Pinoy Trading Centers (APTCs) that serve as direct marketing hubs for farmers and fisherfolk, thereby eliminating the middleman and resulting in a projected 15 to 25 percent increase in income. These completed projects are now operational and accessible to more than 7,000 farmers. There are currently 14 more APTC projects (P1.23 billion) at various stages of development in strategic areas of the country.

Table 12: Status of APTC Projects

Completed and Operational Ongoing Preconstruction/Planning Phase

1. Isabela Multi-Commodity APTC (P121.30 million )

2. Nueva Vizcaya – Expansion of Agricultural Terminal (P55.40 million)

3. Camarines Norte APTC (P44.23 million)

4. Quezon Corn Trading and Processing Center (P28.19 million)

5. Pangasinan APTC (P26.90 million)

6. Dalaguete APTC, Cebu (P18.00 million)

7. Regional Organic Trading Center, Nueva Vizcaya (P18.00 million)

1. Benguet APTC (P656.00 million) 2. Batangas Agri-Pinoy Livestock

and Trading Area (P187.00 million)

3. Nueva Ecija APTC (P77.00 million)

4. Siargao Islands APTC (P29.63 million)

5. Bohol APTC and Integrated Auction Market and Slaughterhouse (P23.00 million)

1. Davao City APTC (P70.00 million)

2. Pangasinan - Region I Corn Silage Processing and Trading Center (P45.10 million)

3. Northeastern Leyte APTC (P32.50 million)

4. Palawan APTC (P30.00 million) 5. Pagadian City Slaughterhouse

Rehabilitation and Trading Center (P19.21 million)

6. Tabaco City APTC for Marine Products, Albay (P18.40 million)

7. Sta. Ana APTC for Marine Products, Cagayan (P18.00 million)

8. Candon City Slaughterhouse and Trading Center (STC), Ilocos Sur (P13.50 million)

9. Tayug Municipal STC, Pangasinan (P13.40 million)

Source: DA

To increase farmers’ income, the government is facilitating product diversification and the opening of new markets for agri-based products by strictly enforcing food safety regulations, investing in animal health through vaccinations and disease surveillance, and upgrading the quality of export facilities. These led to the lifting of a US restriction84 on the importation of Philippine mangoes sourced from various provinces

83 Projects are identified by LGUs, evaluated by DA, and implemented by DPWH. 84 Only mangoes from Guimaras, which are considered free from mango pests, were previously allowed to be

exported to the US.


(e.g., Zambales, Cebu, and Davao) and the opening of Continental US, Hawaii, Guam, and the Northern Marianas Islands market for Philippine bananas, making the country the first in Asia to export bananas to Continental US. Other new export products and markets opened include chicken products (Kuwait, Qatar, South Korea); high-value fruits (UAE and Oman); and tuna loins and tiger shrimps (UAE). Further, trade opportunities for coconut expanded with the development of diversified coco-based products such as coco water. From less than 500,000 liters exported in 2009, coco water exported in 2014 reached more than 27.20 million liters. Volume and value of coco water exports grew by an average of 274 percent and 265 percent, respectively, from 2010 to 2014. Strengthened the Fisheries Sector The government improved market access of fisheries products, with fisheries exports growing at an annual average of 20.5 percent for 2010 to 2013, higher than the 5.1 percent annual average growth from 2001 to 2009. To sustain the sector’s competitiveness and to comply with international standards and obligations, the following were undertaken, among others:

Ensuring that controls and traceability measures (e.g., catch certification) are implemented throughout the supply chain;

Completion of the registration of close to 1.6 million municipal fisherfolk under BFAR's national Municipal Fisherfolk Registration System (FishR);85

Implementation of a joint mobile registration and licensing system, which synchronized vessel registration and licensing activities of the BFAR, MARINA, PCG, and National Telecommunications Commission (NTC) for all commercial fishing vessels;

Enactment of RA 10654,86 which amended the Fisheries Code of 1998, increasing sanctions for illegal, unreported, and unregulated fishing (IUUF) activities, among others; and

Implementation of the Vessel Monitoring System to track the activities of fishing vessels and detect illegal fishing activities.

These resulted in the lifting in April 2015 of the EU yellow card, which was issued in June 2014 to serve as a formal warning on the Philippines’ violation of the EU Regulation to prevent, deter, and eliminate IUUF.87 Said lifting, recognized as one of the fastest among yellow-tagged countries, prevented the blacklisting of Philippine fish product exports to the EU, thus helping the country maximize its zero tariff

85 The implementation of FishR in 2014 provided LGUs with a standard system for fisherfolk registration and a

centralized database. This database is now being cross matched with DSWD’s National Household Targeting System for Poverty Reduction, the Registry System on Basic Sectors in Agriculture (RSBSA), and PhilHealth’s database to ensure that the poorest fisherfolk will be provided social benefits.

86 An Act to Prevent, Deter and Eliminate IUUF, Amending RA 8550, otherwise known as the “Philippine Fisheries Code of 1998,” and for other purposes

87 The said Regulation provides that only marine fish products validated as legal (i.e., those caught and underwent processing in compliance with national, regional, or international fisheries conservation or management legislation or measures) can be imported to or exported from the EU. Access of any country or fishing vessel to the EU market is dependent on its individual record on addressing IUUF.


benefits under the EU GSP+. In 2013, the country exported EUR171.08 million (US$227.23 million88) worth of fishery products to the EU. Sustained Agrarian Reform

The government recognizes that land tenure stability is one of the cornerstones of a strong agricultural policy. It is thus committed to ensure that lands covered by agrarian reform are distributed to qualified beneficiaries. When this Administration took over in 2010, more than 75 percent or 3.2 million of 4.2 million ha of distributed lands were non-private agricultural lands (e.g., settlement areas, Landed Estates, and Government-Owned Lands) or private lands distributed through voluntary modes of acquisition.89 What was left for distribution were private lands covering around 1.2 million ha, mostly for compulsory acquisition, which are harder and more contentious to distribute. Of these, the DAR acquired 566,25290 ha from July 2010 to December 2014, and was able to distribute 506,512 ha to 305,484 agrarian reform beneficiaries (ARBs). The remaining 694,784 ha are still left for processing,91 of which 431,520 are subject to compulsory acquisition based on DAR’s Comprehensive Agrarian Reform Program (CARP)-covered landholdings. The authority of the DAR to initiate the acquisition and distribution of private agricultural land92 ended on 30 June 2014. Prior to this, bills93 were filed in Congress to allow the DAR to continue issuing Notices of Coverage and accepting Voluntary Offers to Sell after 30 June 2014.

In compliance with the Supreme Court decision on the Hacienda Luisita, DAR was able to distribute all the 4,100 ha of CARPable lands to 6,081 ARBs94 and acquired 400 ha for their common areas, such as firebreaks, which will also serve as access roads to the farm lots of the beneficiaries, fishponds, canals, and roads, among others. In 2014, ARBs of Hacienda Luisita organized themselves into ten barangay-

88 Converted using the 2013 average exchange rate of EUR1=US$1.3282 89 Voluntary modes of acquisition are: Voluntary Land Transfer (VLT) and Voluntary Offer to Sell (VOS).

90 This is equivalent to 43,935 landholdings processed by DAR. The difference of 59,740 ha are the non-CARPable portions consisting of those retained by landowners, or portions rejected by the Land Bank of the Philippines due to their being above 18 percent slope, undeveloped; rivers, creeks, roads, or portions found to be within timberland. They are part of the total area that has been documented and processed but cannot be distributed to farmer beneficiaries.

91 Processing entails the identification of beneficiaries; the conduct of ground survey to segregate areas not coverable and the retention area of the landowner from those that are to be distributed, and to subdivide distributable lands among the identified beneficiaries; and the resolution of any protests from coverage.

92 Through the issuance of a Notice of Coverage for lands under Compulsory Acquisition and acceptance of a landowners’ offer under the Voluntary Offer to Sell scheme.

93 House Bill No. 4296 (An Act Mandating The Completion of The Land Acquisition and Distribution [LAD] Component of the Comprehensive Agrarian Reform Program [CARP] Pursuant to Republic Act No. 6657, Otherwise Known as The “Comprehensive Agrarian Reform Law”, As Amended), Senate Bill No. 2278 (An Act Mandating the Completion of the Land Acquisition and Distribution [LAD] Component of the Comprehensive Agrarian Reform Program [CARP] By June 30, 2016 Pursuant to Republic Act No. 6657, Otherwise Known as the Comprehensive Agrarian Reform Law, As Amended)

94 The DAR received an appeal from 14 ARBs to be included in the list of beneficiaries after they failed to comply with the requirements within the deadline. The case will be resolved within the next two months.


based organizations to which the DAR can effectively channel support services, like agri-extension and business development services. These organizations, along with others nationwide, were recently granted farm equipment that will aid in strengthening their organizations and increase productivity. The DA has conducted water and crop suitability testing and provided training for the production of various crops. The Sugar Regulatory Administration is lining up sugar block farm projects for those who wish to continue with sugarcane production.

Improved Land Administration

The government pursued improvements in land administration and management to support programs on good governance, social equity, and environmental protection. The Cadastral Survey delineates the boundaries of various political units, identifies individual claims of all land owners and claimants, and serves as basis for issuance of titles and patents. From the passage of Commonwealth Act No. 2259 or Cadastral Act in 191395 up to 2009, only 753 cities and municipalities (46 percent) were surveyed due to lack of political will and insufficient funding.

To address land title issues, the government earmarked P5.70 billion to speed up the Cadastral Survey. From 2010 to July 2015, the DENR surveyed 881 cities and municipalities (54 percent), completing the cadastral survey of all 1,634 cities and municipalities nationwide within this Administration. The Land Registration Authority is close to completing its Land Titling Computerization Program that will ensure efficiency and ease in the registration system, as well as accuracy in land record. As of April 2015, a total of 152 or 95 percent of Registries of Deeds nationwide have been implementing the Program; and 99 percent of the 24 million titles have been digitized. Ensuring Energy Sufficiency

Energy sufficiency is needed to sustain the country’s growing economy. To achieve this, the government works on encouraging the private sector96 to increase the number and capacity of power plants, and to diversify energy source, particularly renewable energy (RE). From July 2010 to June 2015, a total of 43 commissioned

95 The Cadastral Act mandated the then Bureau of Lands to survey lands and compulsorily register land titles. In

compliance with the decentralization as mandated by the Local Government Code of 1991, DENR issued DAO No. 30, series of 1992 to devolve the functions to conduct Cadastral Survey and lot survey, among others to LGUs. However, not a single municipality had completed its Cadastral Survey due to lack of manpower and financial resources. This prompted DENR, through DAO No. 2001-23, to get back from LGUs the devolved function to execute, supervise, and manage land surveys.

96 Section 2 (d,i) of RA 9136, or the 2001 Electric Power Industry Reform Act, provides that “it is the policy of the state to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors in order to minimize the financial risk exposure of the national government.” and to “provide for an orderly and transparent privatization of the assets and liabilities of the National Power Corporation.”


power projects,97 with an aggregate installed capacity98 of 1,554.20 MW, were added, bringing the country’s energy supply to 15,878 MW in installed capacity, sufficient to meet the 2015 peak demand of 11,975 MW.

The projected additional capacity needed from 2016 to 2020 is 871 MW for Luzon, and 859 MW for Visayas. During the same period, Mindanao is projected to have an excess capacity of 780 MW.99 To meet this, a total of 66 incoming committed power projects100 nationwide with 5,069.75 MW of new capacities have been lined up. These incoming projects are expected to be commissioned from now until 2019.

Table 13: Select Operational and Incoming Power Projects

Power Project Installed Capacity (in MW)

Energy Source Year of Commercial

Operation

Operational (Commissioned)

Mapalad, Iligan 103 Diesel 2013

Caparispisan, Ilocos Norte 81 Wind 2014

Burgos Wind Power, Ilocos Norte 150 Wind 2014

Therma Marine Inc., Navotas 242 Diesel 2014

South Luzon Thermal Energy Corp. Puting Bato Phase I, Batangas

135 Coal 2015

Incoming (Committed)

Concepcion Coal II, Iloilo 135 Coal 2016

San Gabriel, Batangas 450 Natural Gas 2016

Pagbilao III, Quezon 420 Coal 2017

GN Power Kauswagan, Lanao del Norte

540 Coal 2017

San Buenaventura Power, Quezon 460 Coal 2019

Source: DOE

In sum, the Administration’s commissioned and incoming committed power projects from 2010 to 2019 would total to 6,624 MW from 109 projects. These are much higher than the previous administration’s 1,667 MW from 21 commissioned power projects.

Of the 43 commissioned power projects, 23 are RE, while 36 out of the 66 incoming committed power projects will likewise be sourced from RE.

97 Refer to private sector-initiated power plants that are in commercial operation. Committed power projects are

those which are ongoing, with physical construction, and/or have attained financial closure as reported by the private sector proponents to the DOE.

98 Refers to the capacity of a plant, as indicated in its engine or by its manufacturer (rated capacity). On the other hand, dependable capacity pertains to the reliable capacity of a power plant when factors such as ambient temperature and site conditions, among others, are considered.

99 The required capacity additions were done on a per grid basis for a higher accuracy. The figures are based on projected peak demand requirements, existing available capacity, committed power project capacity, less the required reserve levels.

100 Refer to committed projects, which are expected to be commissioned in periods stated/agreed upon


The government is also partnering with electric cooperatives to provide wider access to electricity. As of 30 June 2011, only 71,048 (69 percent) of the 103,489 sitios101 had been energized, leaving 32,441 sitios as unenergized. The government pursued the Sitio Electrification Program (SEP) to energize all 32,441 on-grid and off-grid sitios.

From July 2011 to June 2015, a total of 25,257 sitios or 77.86 percent of the 32,441 target sitios were energized.102 Overall, the country’s sitio electrification level increased from 69 percent in June 2011 to 93 percent as of June 2015, with a total of 96,305 energized out of the 103,489 sitios. The electrification of the remaining 7,184 sitios shall be completed before this Administration ends. Ensuring Stable Water Supply Alongside efforts to ensure energy sufficiency, the government sought to guarantee a stable water supply. The Water Security Legacy Program was implemented starting in July 2011 to promote collaboration among MWSS, its concessionaires, and other stakeholders in developing plans and strategies that will address key issues on water infrastructure development, resource management protection, and water distribution efficiency, among others.

101 A sitio is composed of at least 10-30 households. It is considered energized if a) the households within it are

receiving power; b) infrastructure for the distribution system is in place; c) its respective electric cooperative is processing the sitio’s requirements (e.g., membership, approved electrical plan, building permits) for household connection; and d) household consumers are working on their LGU requirements (e.g., electrical plan, proof of ownership, among others).

102 An average of P580,000.00 was spent per sitio, lower than the average cost of P870,000.00 in 2008. The more

cost-effective expense was pursued by NEA through the practice of transparency in procurement, and imposition of standard prices for materials.


Table 14: Water Security Legacy Program Status Project Name and Description Status

1. Angat Water Utilization and Aqueduct Improvement Project (Phase II), Quezon City (P5.7 billion)

Optimizes raw water conveyance from Angat Dam to the La Mesa Dam and the La Mesa Portal through the construction of a new 9.9-km aqueduct and the rehabilitation of another

Recovers 350 million liters per day (MLD) of water

Inaugurated in July 2012 (eight months ahead of the contract period of March 2013)

2. Angat Dam and Dike Strengthening Project, Bulacan (P1.63 billion)

Strengthens the dam, dike, and spillway to withstand potential risk posed by possible seismic activity associated with the West Valley Fault

Includes flood protection works and installation of flood forecasting and warning systems to benefit downstream towns and cities

Groundbreaking: July 2015

Target completion: 2017

3. Bulacan Bulk Water Supply Project, Bulacan

(P24.44 billion; PPP)

Provides clean and affordable treated water to 21 municipalities and three cities in Bulacan

Provides infrastructure and utilities for treatment and conveyance of treated bulk water to water districts

Target bid submission: September 2015

4. New Centennial Water Source-Kaliwa Dam Project, Rizal (P18.72 billion; PPP)

Provides a 600 MLD of raw water

Includes the construction a 27.7-km water conveyance tunnel with 2,400 MLD capacity of raw water

Will reduce Metro Manila’s heavy dependence on the Angat Dama reservoir

Target bid submission: January 2016

5. Angat Water Transmission Improvement Project, Bulacan (P5.78 billion)

Construction of a 6.3-km additional tunnel to allow the necessary rehabilitation of the system without interrupting the transmission of water

Target bid submission: September 2015

a The Angat Dam currently provides approximately 97% of potable water supply to Metro Manila, and parts of the provinces of Rizal, Bulacan, and Cavite. Minor sources of water for Metro Manila are deep wells (1%) and the Laguna Lake bulk water being filtered at the Putatan Water Treatment Plant in Muntinlupa, Metro Manila (2%).

Source: MWSS


POVERTY REDUCTION AND EMPOWERMENT OF THE POOR AND VULNERABLE Focusing on improving the overall quality of life of the Filipino, the government translated the gains of economic growth into direct, immediate, and substantial benefits. Sustained growth during this Administration contributed to a marked increase in employment, with over 4 million individuals103 added to the number of employed from 2010 to 2014. Unemployment rate declined from 7.4 percent in 2010 to 6.8 percent in 2014, which was the lowest since 2005. For April 2015, unemployment rate was 6.4 percent.104 In a 2014 Gallup poll on local job opportunities in 145 countries, 66 percent of respondents in the Philippines said that it was a good time to find a job in the country, making the Philippines the most optimistic about finding a job among 22 Asia Pacific countries and second globally, next only to Turkmenistan. Complementing these improvements in employment are the government’s efforts toward social development that will enable the poor to take advantage of economic opportunities, and social protection that will prevent them from falling deeper into poverty. These include programs to capacitate its workforce towards decent and productive work, promote access to affordable and quality health care, and empower the poor and marginalized to enhance their access to basic needs and opportunities. The priority accorded by the government on the welfare of the poor and the marginalized is seen in its consistent allotment of the biggest share of the National Budget every year to social services, increasing its allocation more than two-fold from 2010 to 2015. Figure 16: Social Services Budget (2010–2015)

Note: 2010–2013 (Actual); 2014 (GAA); and 2015 (GAA)

Source: DBM

103 From 2010 to 2014, there were an average of over 800,000 new entrants in the labor force. 104 Note that 2014 data exclude Region VIII and April 2015 data exclude Leyte.

2010 2011 2012 2013 2014 2015

Social Services Budget 415.8 544.9 592.2 712.1 841.8 952.7

National Budget 1,473.0 1,580.0 1,829.0 2,005.9 2,264.6 2,606.0

% Share in the National Budget 28% 34% 32% 36% 37% 37%

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10%

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20%

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The government’s effort to put primacy in social services contributed to the decrease in poverty incidence from 27.9 percent in the first semester of 2012 to 25.8 percent in the first semester of 2014. This is equivalent to around 504,408 individuals getting out of poverty. 1. Invested in the Filipino Workforce for Decent and Productive Work

Investing in human capital is critical in sustaining the gains of good governance and economic growth. The government's central strategy to pursue this, and to also reduce poverty and build national competitiveness, is through cohesive education and training programs that seek to produce a workforce equipped with industry-relevant skills and competencies. To this end, the government allocated increasing funds for education, reaching P453 billion by 2015, from P225.1 billion in 2010, or a 101.2 percent increase.105 The most critical measures taken include the institutionalization of the Philippine Qualifications Framework, implementation of the K to 12 Basic Education Program, provision of industry-responsive skills training, pursuit of reforms in higher education, and implementation of targeted employment facilitation services. Institutionalized a National Qualifications Framework To match the country’s education and training outcomes with industry competency requirements, the Philippine Qualifications Framework (PQF) was institutionalized through the signing of EO No. 83 in October 2012. It harmonizes the country’s education system by establishing national standards for the competencies and outcomes required at each educational level—basic education, technical vocational education and training, and higher education. It further allows for greater career and occupational mobility by providing more options on when to enter and exit the educational ladder and the job market, thus encouraging lifelong learning. By 2018, the PQF will have been fully referenced against the ASEAN Qualifications Reference Framework to ensure regional comparability of the education and training received by the country’s graduates, allowing their greater mobility across the region. Enhanced the Quality of Basic Education The government, recognizing the need to reform basic education to enhance its graduates’ capabilities and access to opportunities, worked with Congress to pass the Kindergarten Education Act (RA 10157) in January 2012 and the Enhanced Basic Education Act (RA 10533) in May 2013. Reforms in the K to 12 Basic Education Program ensure that every graduate is ready for employment, entrepreneurship, or further education. Its salient features include:

105 Using 2010 actual and 2015 GAA figures


Extension of the basic education cycle from 10 to 12 years,106 to allow sufficient time for the mastery of concepts and skills and placing the Philippine basic education curriculum at par with international standards;107

Adoption of the enhanced curricula covering one year of kindergarten, six years of elementary, four years of junior high school (JHS), and two years of senior high school (SHS);

Implementation of the SHS Core Curriculum, which was developed based on CHED’s College Readiness Standards,108 to ensure that all basic education graduates are prepared for higher education; and

Introduction of SHS Applied and Specialized Subjects to provide training and preparation for specific career options under the Academic, Technical-Vocational-Livelihood, Sports, and Arts and Design Tracks.

DepEd is focusing its efforts and resources for full K to 12 implementation, which started with the introduction of universal Kindergarten in SY 2011–2012 and will be completed with the nationwide introduction of Grade 12 in SY 2017–2018. These efforts include the identification of schools that will implement SHS109 and the release of the SHS Voucher Program policy to provide qualified JHS completers a P22,500 maximum grant per year110 to enroll in SHS.111 Various measures are also being implemented by DepEd, CHED, TESDA, and DOLE to mitigate the impact of SHS on higher education institutions (HEIs) and its personnel, which will have a significantly reduced enrollment from 2016 to 2020.112 In support of improving education outcomes and K to 12 implementation, the government provides basic education inputs to address both the 2010 backlog and incremental and estimated needs. Specifically to address the 2010 backlogs, the government procured and delivered 2.5 million school seats and 61.7 million textbooks in 2012, as well as constructed 66,800 classrooms and hired 145,827 teachers in 2013.113

106 A 12-year program is found to be the adequate period for learning under basic education. It is also the globally-

recognized standard for students and professionals. 107 Prior to the enactment of RA 10533, the Philippines was the last country in Asia and one of only three countries

worldwide with a 10-year pre-university cycle, with Angola and Djibouti being the other two. 108 The Core Curriculum covers learning areas in Communication, Language, Mathematics, Natural Science,

Philosophy, and Social Sciences. CHED’s College Readiness Standards defines the expected entry competencies for basic education graduates entering higher education after the K to 12 cycle.

109 As of July 2015, DepEd has identified/approved the following schools to offer Grade 11 in SY 2016–2017: 5,661 existing DepEd high schools, 227 proposed stand-alone DepEd schools (i.e., public schools that will exclusively offer SHS), and 2,953 non-DepEd schools (i.e., private high schools and public and private colleges and universities).

110 The voucher value that a beneficiary will receive is primarily dependent on: (i) the location of the SHS where the student will enroll; (ii) whether the student finished Grade 10 from a public or private high school; and (iii) whether the student will enroll in a private or public institution for Grades 11 and 12. The full voucher value per year for students who finished Grade 10 in a public school and who will enroll in a private school for SHS is P22,500 in Metro Manila; P20,000 in highly-urbanized cities outside Metro Manila such as Baguio, Cebu, Davao, Iloilo, Lucena, Puerto Princesa, and Zamboanga; and P17,500 for all other cities and municipalities.

111 Covering private high schools, private universities or colleges, state or local universities or colleges, or technical-vocational schools

112 This is due to the lack of full cohort to enroll in college during the covered years, where there will still be a limited number of basic education graduates from K to 12-compliant schools.

113 The 145,827 teacher backlog was addressed by end-2013 with the creation of 102,623 teacher items from 2010 to 2013 combined with about 43,000 Kinder volunteer and LGU-hired teachers.


The government is also ensuring that there are sufficient basic education inputs for the estimated 4.7 million additional students, which cover the 2.5 million increase in student population for SYs 2010–2011 to 2016–2017 and the 2.2 million SHS enrollees for SYs 2016–2017 to 2017–2018. This will require an estimated 118,000 classrooms. Of these, 33,608 have been constructed or are ongoing construction as of February 2015, 41,000 are programmed for construction in 2015, and 43,000 are under the proposed 2016 budget. For the estimated 130,000 teacher need,114 29,444 were hired in 2014, 39,000 are targeted to be hired in 2015, and 60,000 are under the proposed 2016 budget. An additional 73.9 million textbooks and 1.6 million school seats have been procured and delivered as of March and June 2015, respectively, and 88.7 million more textbooks and 1.6 million more school seats will be procured and delivered by end-2015. The procurement and delivery of 103.2 million textbooks and 4.4 million school seats are under the proposed 2016 budget. The gains in basic education were acknowledged in a May 2015 Philippine Institute for Development Studies (PIDS)-UNICEF study, which highlighted the decrease in out-of-school children in the country. From 11.7 percent of children aged 5–15 in 2008, it was reduced to less than half by 2013 to 5.2 percent. This is roughly equivalent to 1.7 million children who would have been out-of-school children but are now in school.

Table 15: Number of Out-of-School Children aged 5–15 in the Philippines

Indicator 2008 2013

School-age population aged 5–15 (in millions)

25.1 23

Out-of-school children aged 5–15 (in millions)

2.9 1.2

Share of out-of-school children aged 5–15 to school-age population (in %)

11.7 5.2

Source: NEDA

It noted that this may be largely attributed to reforms and investments in basic education, specifically the passage and implementation of the Kindergarten Education Act and the Enhanced Basic Education Act, as well as the increase in DepEd budget that allowed for significant accomplishments in providing basic education inputs. The increased household coverage of the Pantawid Pamilyang Pilipino Program, where family-beneficiaries must comply with education-related conditionalities to receive cash grants, may have also contributed to said decrease.

114 DepEd provision involves the creation of about 130,000 new teaching positions to address incremental K to 10

enrolment and estimated SHS enrolment needs, as well as to provide plantilla positions to qualified Kinder volunteer and LGU-hired teachers, taking into consideration the subject specializations required to teach at higher grade levels.


Implemented Industry-Responsive Training Programs The government, through TESDA, oversees technical vocational education and training (TVET) provided by technical vocational institutions and other companies and communities. From July 2010 to May 2015, TVET programs equipped 7.8 million graduates with skills relevant in various industries. Based on TESDA’s 2014 Study on the Employability of TVET Graduates,115 58.9 percent of 2013 TVET graduates were 15 to 24 years old; 55.1 percent were high school graduates; and 53.9 percent underwent TVET to improve employment opportunities. It further recorded a 65.4 percent employment rate among the 2013 graduates, higher than most of those recorded in previous years.116 To assist those who decide to pursue TVET, the Training for Work Scholarship Program (TWSP) provides scholarships to train beneficiaries in skills needed by industries (e.g., IT-BPM, semiconductor and electronics, construction, tourism). This is implemented in coordination with private sector partners, such as the Information Technology and Business Process Association of the Philippines (IBPAP), Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI),117 and the Association of Carriers and Equipment Lessors (ACEL) Inc., who work with the government in identifying the skills, developing training standards, and actual training of beneficiaries. TWSP benefited 821,962 graduates from July 2010 to May 2015, or 10.47 percent of total TVET graduates. Based on the 2014 Study on the Employability of TVET Graduates, 71.9 percent of 2013 TWSP graduates found employment, which is a marked improvement over the 28.5 percent employment rate of TESDA scholars from 2006 to 2008.

In recognition of TESDA’s efficiency in delivering its services, it was awarded nationwide ISO 9001:2008 certification in February 2015. The certification covers its program registration, competency assessment and certification, and development of training regulations and competency assessment tools. It includes its Central Office, 17 Regional Offices, and 81 Provincial Offices, including TESDA-ARMM, which is the first and only government agency in ARMM with an ISO certification. Pursued Reforms in Higher Education The government undertakes various reforms and initiatives with the end goal of improving the quality, employability, and competitiveness of higher education graduates. To achieve this, CHED adopted tactical reform strategies that focus on enhancing the competencies of students and developing excellence in colleges and universities. Curricular re-engineering and upgrading are being undertaken to ensure the alignment of the skills and competencies of higher education graduates with the K to 12 Basic Education Program, industry requirements, and international benchmarks.

115 Approved by the National Statistical Coordination Board (now Philippine Statistical Authority) 116 55.1 (2006); 60.9 (2009); 65.9 (2010); 62 (2011); and 65.3 (2012) 117 Graduates of TESDA-SEIPI trainings recorded an employment rate of 91.26 percent.


CHED targets to align the Policies, Standards, and Guidelines of the existing 106 academic programs by 2016, 87 of which are in various stages of finalization as of July 2015. Specifically to align with K to 12, CHED, in collaboration with DepEd, also revised the General Education Curriculum (GEC) in June 2013 to, among others, provide greater flexibility through the use of an interdisciplinary approach118 and the transfer of remedial courses in subjects such as language and mathematics to the Grades 11 and 12 curricula. The new GEC will take effect in AY 2018–2019, when the first nationwide cohort who finished SHS enters college. CHED also engages industry partners119 to develop and deliver programs in high-demand and/or emerging fields. To this end, specialization tracks in fields such as Service Management and Business Analytics were developed to ensure that their graduates are equipped with the necessary skills for careers in these fields. The Service Management Program (SMP), which was introduced in three State Universities and Colleges (SUCs)120 in AY 2013–2014 to equip graduates with competencies demanded in the IT-BPM industry, has an estimated enrollment of 8,000 across eight implementing SUCs as of June 2015. The first batch of 727 students with specializations under the SMP graduated in March 2015. As part of the preparations for the rollout of the Business Analytics track, CHED will provide financial support to more than 4,000 faculty to undergo a special training program starting AY 2015–2016 to further equip them with the skills and knowledge to teach undergraduate and graduate courses in Business Analytics. CHED also adopted a two-pronged strategy by rationalizing program offerings and by providing support to deserving programs. It closed/phased out 686 substandard or noncompliant programs121 from June 2010 to May 2015 and also provided P910.6 million to 421 deserving public and private HEIs122 from 2010 to 2015 for facilities improvement and faculty development, among others. In recognition of the country’s efforts to ensure the global competitiveness of its higher education graduates through its compliance with international standards, the Philippines attained provisional membership to the Washington Accord in June 2013 and Seoul Accord in June 2015, which are the international mutual recognition agreements for engineering and IT disciplines, respectively. Specifically for the Seoul Accord, the Philippines is the first ASEAN country to have achieved such status.

118 Through core courses which include Readings in Philippine History, Purposive Communication, and Ethics 119 Such as the IBPAP and IBM Philippines 120 Polytechnic University of the Philippines, Negros Oriental State University, and Laguna State Polytechnic

University 121 CHED orders the closure/phase-out of substandard or non-compliant programs in both public and private HEIs

when they fail to follow the program's minimum Policies, Standards, and Guidelines and show poor performance in national licensure examinations.

122 Covering 301 Centers of Excellence (COEs) and Centers of Development (CODs) and 28 Research and Development Centers, among others. COEs and CODs offer academic programs that have been benchmarked against international practices and are recognized for their capacity to produce globally-competitive graduates and cutting-edge research outputs. Research and Development Centers are composed of HEIs that conduct R&D activities responsive to the needs of the region and their known field of excellence; initiate collaborative R&D with foreign, regional, and/or area partners; and promote technology transfer and extension, among others.


The country’s provisional membership to these Accords shows that the Philippines gained significant ground towards developing an internationally-comparable recognition/accreditation system in the fields of engineering and IT, as it is only granted when the applicant has demonstrated that its system is conceptually similar to those of full members. The government provided financial support through CHED, which allowed the formulation of guidelines for an outcomes-based accreditation system and the training of accreditors/evaluators for said disciplines, among others. Full membership to these Accords will result in the international recognition of Filipino engineering and IT professionals who graduated from accredited programs. Provided Targeted Interventions to Improve Access to Opportunities Based on a study released by the Asian Development Bank (ADB) in 2010, Filipino students who entered but did not finish high school or college have limited access to economic opportunities. The government, recognizing the challenges they face, seeks to address this problem through, among others, the Abot-Alam Program. Specifically for out-of-school youth (OSYs),123 the Program is the first initiative to map OSYs nationwide and provide them appropriate interventions in education, skills training, or entrepreneurship. Launched on 30 September 2014, it is a convergence among various government agencies,124 non-government organizations, and other institutions. Out of the 2.67 million OSYs mapped by the government as of March 2015, a total of 776,532 have been matched and enrolled in appropriate program interventions. Of these, 610,548 entered either DepEd’s Alternative Learning System (ALS)125 or pursued higher education, 88,182 were provided opportunities for entrepreneurship,126 and 77,802 underwent skills training for employment.

Ensured Compliance with Labor Laws In 2012, the President approved the creation of 372 plantilla positions for Labor Law Compliance Officers to achieve the ideal ratio of 1 labor inspector for every 120 establishments. The filling of these positions in 2014 increased the number of establishments covered from 35,391 in 2010 to 76,880 establishments in 2014. Of this number, 67,906 establishments have been assessed, of which 44,041 establishments were found compliant with labor laws. The latter employed 2.5 million workers who received P357 billion in wages, service incentive leave pay, and the mandatory 13th month pay.

123 Persons aged 15 to 30 years old who have not completed basic/higher education or are unemployed 124 Including DepEd, TESDA, CHED, DTI, and DOLE 125 A parallel learning system that responds to the need for a systematic and flexible approach in reaching all types

of learners outside the formal school system 126 Through the provision business-related trainings/seminars, seed capital, and/or startup equipment, among others


Compliance with General Labor Standards127 also increased from 68.13 percent in 2010 to 84.57 percent in 2014. Promoted Harmonious Employer-Employee Relations Institutionalized in 2013 through RA 10396,128 the Single Entry Approach (SEnA) mandates concerned DOLE offices to facilitate the settlement of employer-worker disputes within 30 days, significantly reducing litigation processes, which took a year on average. From October 2010 to May 2015, 114,880 requests for assistance were processed, and 91,926 (80 percent) of these were settled in an average of 17 days. SEnA further facilitated the payment of P4.03 billion monetary benefits covering backwages, separation pay, and other benefits to 132,331 workers. The Program helped maintain the number of strikes at a single-digit level annually during this Administration, with 2013 registering a single strike, the lowest in DOLE history.129 A total of 15 strikes were recorded from July 2010 to May 2015, while 199 were recorded from 2001 to June 2010. For its outstanding work, the DOLE-SEnA Team received the Presidential Lingkod Bayan Award in 2013, which is given by the Civil Service Commission to individuals or groups who have contributed significantly to public interest, security, and patrimony.

In recognition of the reforms in the labor justice system, the Philippines' ranking in

the WEF Global Competitiveness Index for labor market efficiency improved from 111th in 2010 to 91st in 2014. For the sub-indicator on cooperation between labor and management, the country's ranking likewise improved from 56th in 2010 to 29th in 2014.

2. Sustained Equitable Access to Affordable and Quality Health Care

The government furthers its investments in its people, especially the disadvantaged, by providing equitable access to affordable and quality health care through the Universal Health Care (UHC), also known as Kalusugang Pangkalahatan. To fully realize the goals of UHC, the government consistently increased the annual budget allocation for the DOH, from P28.7 billion in 2010 to P87.6 billion in 2015—equivalent to a 205.2 percent increase.

127 These refer to the minimum requirements that an employer should provide to the workers, such as wages, hours

of work, and other non-monetary benefits, as well as general occupational safety and health standards. 128 An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases,

Amending for this Purpose Article 228 of Presidential Decree No. 442, as Amended, Otherwise Known as the “Labor Code Of The Philippines”

129 Strikes have been at a single-digit level since 2007: 6 in 2007; 5 in 2008; 4 in 2009; 8 in 2010; 2 in 2011; 3 in 2012; 1 in 2013; and 2 in 2014.


Financial Risk Protection through the Expansion of the National Health Insurance Program (PhilHealth) Coverage and Benefit Delivery By 2016, the national government targets to expand PhilHealth coverage130 to 95 percent of the country’s population.131 As of June 2015, PhilHealth coverage at the national level is 89.42 million or 88 percent of the 101.45 million 2015 projected population. This is almost double the 2010 coverage of 47.07 million or 51 percent of the 92.34 million 2010 population. Contributing to this increase is the national government’s initiative to sponsor families belonging to the lowest quintile of the population (or the poorest of the poor) by fully subsidizing their PhilHealth premiums132 starting 2012.133 This was later expanded to benefit families belonging to the next quintile of the population starting 2014.134 Thus, from 4.6 million135 in 2012, the number of national government-sponsored families has consistently increased over the years, reaching 15.29 million136 as of the first quarter of 2015 or 100 percent of the families that comprise the households137 identified as poor through the National Household Targeting System for Poverty Reduction (NHTS-PR).138 The heads of these families139 and their qualified dependents are entitled to avail of free in-patient and out-patient services from government health facilities. The national government’s sponsorship of vulnerable sectors was further expanded with the passage of RA 10645 or the Expanded Senior Citizens Act in November 2014, which made the PhilHealth coverage of all Filipino senior citizens mandatory.

130 Coverage refers to the entitlement of enrolled members and their dependents to PhilHealth benefits as regular

paying members; enrollment refers to enlistment/registration of individuals as PhilHealth members or dependents. In 2013, PHIC shifted its accomplishments reporting from enrollment to coverage because the latter is reflective of the number of Filipinos who can actually avail of PhilHealth benefits.

131 The target is to achieve 100 percent coverage by 2020. 132 Amounting to P2,400 annually per principal member (which represents a family) 133 Prior to the passage of RA 10606 (National Health Insurance Act of 2013), the PhilHealth premium of an indigent

was shared equally by the local and national government, except in the case of the 4th to 6th class municipalities, where the national government provided up to ninety percent of the subsidy until such time that these municipalities have been upgraded to 1st, 2nd, or 3rd class.

134 Quintile 1 refers to the poorest segment of the population, while quintile 5 refers to the richest. 135 Composed of 20.43 million individuals, categorized as either a principal member or a qualified dependent of the

principal member (e.g., legitimate spouse; legitimate, acknowledged, or adopted children below 21 years old; parents 60 years old and above; and children or parents with disability regardless of age). They comprised the 21 percent of the country’s 2012 projected population of 95.88 million.

136 Composed of 45.41 million individuals, categorized as either a principal member or a qualified dependent of the principal member. They comprise 45 percent of the country’s 101.45 million 2015 projected population. The sponsorship of individuals within NHTS-PR households that do not qualify as dependents of principal members, as well as the sponsorship of families and individuals from the lower income group not in the NHTS-PR, explains why the percentage of those sponsored by the national government against the total population exceeds 40 percent.

137 A household may be composed of more than one family. As more than one principal member may be registered in a household, PhilHealth uses “family” or “principal member” (which sometimes represent a family) instead of “household” in reporting accomplishments.

138 The list came from the households assessment conducted by the DSWD. RA 10606 provides that premium contributions for indigent members as identified by the DSWD through a means test or any other statistical method shall be fully subsidized by the national government.

139 Also referred to as PhilHealth principal members


As a result, more than 4.8 million senior citizens have been enlisted by PhilHealth as of June 2015. These senior citizens will also be entitled to benefits like other government-sponsored members.140

Meanwhile, patients who are non-PhilHealth members but qualify as poor may be enrolled and covered in PhilHealth through the Point of Care (POC) Enrollment Program. Under this Program, which started in April 2013, the government hospital will pay for the patient’s PhilHealth premium for the first year to immediately cover hospitalization expenses.141 As of December 2014, a total of 157,022 indigent patients have been enrolled in the Program through the 263 participating hospitals (i.e., 59 DOH-retained, 202 LGU-owned, and 2 State University-owned) nationwide.142

To better serve all its members and their dependents, PhilHealth also introduced the following benefit packages that help reduce out-of-pocket expenses:

Table 16: PhilHealth Benefit Packages Benefit Package Description

1. Tamang Serbisyo para sa Kalusugan ng Pamilya (TSeKaP)

Launched in February 2015, it is an outpatient benefit package that includes laboratory tests and maintenance for lifestyle-related diseases, treatment for most common diseases (e.g., diarrhea, asthma, pneumonia, urinary tract infection [UTI], hypertension, diabetes, high cholesterol, and ischemic heart disease), and screening for cancers and other diseases.

It is an expansion of the Primary Care Benefit 1 (PCB1) launched in 2012, which only covered services, diagnostics, and in-facility medications for asthma, upper respiratory tract infection, UTI, and diarrhea.

2. Animal Bite Package

Launched in 2012, it aims to defray the cost of anti-rabies treatment to patients.

The fixed rate is P3,000 per case, which covers rabies vaccine, wound care, and antibiotics, among others.

From 2012 to 2014, a total of 31,106 patients benefited from the package, with PhilHealth paying P92.85 million for these patients’ claims.

3. PhilHealth Outpatient Anti-Tuberculosis Directly Observed Treatment Short Course (TB-DOTS)

Launched in 2003 and enhanced in 2014, it covers new and retreatment cases of drug-sensitive TB for both children and adults. Prior to its enhancement, only patients with new cases of TB can avail of the package.

The fixed case payment for the course is P4,000, which covers diagnostic examinations, consultation services, health education, and counseling.

140 Funds used to cover them are the incremental revenues from the excise tax collections on alcohol and tobacco

products, as mandated by RA 10351 or the 2012 Sin Tax Reform Act. 141 A POC-implementing hospital’s social welfare officer evaluates and determines a patient’s eligibility to the

sponsored program using DSWD’s enumeration tools. 142 To ensure continuity of coverage, the names of patients enlisted through the POC are turned over by PHIC to

DSWD for review and possible inclusion in the NHTS-PR list.


Table 16: PhilHealth Benefit Packages Benefit Package Description

4. Maternity Care Package (MCP)

Launched in 2003 and last enhanced in 2014, it covers the essential health care services (antenatal, intrapartum, and immediate post-partum) for pregnant women. Enhancements are: MCP can now be availed of in both hospitals and non-hospital health

facilities. Prior to this, the package can only be availed in birthing homes.

A referral fee of P650 will be paid to birthing homes that referred complicated cases/deliveries.

Health facilities that provided antenatal health services can still get a reimbursement of P1,500 even if the mother delivered at another health facility.

Most importantly, it ensures that every woman about to give birth shall have financial access to health services by making sure that they are enrolled to and covered by PhilHealth either through POC or other mechanisms.

The amount of support ranges from P6,500 to P8,000.

5. Z-Benefit Package*

Launched in 2012, it covers catastrophic diseases such as breast cancer, childhood acute lymphoblastic leukemia, prostate cancer, and kidney transplant.


6. Expanded Z-Benefit Package*

Launched in 2013, it covers additional catastrophic diseases such as coronary artery bypass graft surgery (bara sa ugat ng puso), total correction of tetralogy of fallot (butas at maling posisyon ng malalaking ugat sa puso), closure of ventricular septal defect (malalaking butas sa puso), and cervical cancer (kanser sa kwelyo ng matres).


7. Z-Morph Benefit Package**

Launched in 2013, it is the first PhilHealth benefit package for persons with disabilities (PWDs).

It covers the initial fitting of the lower limb prosthesis below the knee with a package rate of P15,000 per limb prosthesis.

8. PD First Z-Benefit Package**

Launched in 2014 in line with the efforts to strengthen peritoneal dialysis (PD) as the initial line of treatment for patients requiring renal replacement therapy.

The total package is worth P270,000 annually.

9. Z-Benefit for Selected Orthopedic Implants**

Launched in 2014, it covers hip prosthesis and selected implants or hip fixation and femoral shaft fracture, among others.

The amount of support ranges from P48,000 to P169,000. * From 2012 to May 2015, a total of 1,368 patients benefited from the Z-Benefit Packages, with PhilHealth paying

P467 million worth of claims. ** No claims have been filed yet for the Z-Morph Benefit Package, but there are already pending claims for the PD

First Z-Benefit Package and Z-Benefit for Selected Orthopedic Implants.

Source: PHIC

To ensure that the poor are able to avail of PhilHealth benefit packages without undue financial hardships, the No Balance Billing (NBB) Policy was adopted in 2011. It provides that no expenses should be shouldered by the national government-sponsored members or their dependents confined in government health facilities.143 The All Case Rates (ACR) was launched in 2014 to ensure that there is a fixed rate for each treated case across all PhilHealth-accredited facilities. An expansion from

143 RA 10351 provides the funding for the coverage of the sponsored poor or the list of NHTS-PR assessed poor of

the DSWD. The law provides that 80 percent of the remaining balance of the incremental revenue derived from excise tax collections, as mandated by this law, shall be allocated for the universal health care under the National Health Insurance Program.


the initial 23 medical and surgical conditions covered by the 23 Case Rates Package adopted in 2011, the ACR covers a total of 4,699 medical and 4,335 surgical conditions. It helps discourage healthcare providers from charging excessive fees, thus enabling all members and their dependents to know exactly how much PhilHealth will shoulder. In terms of benefit payments, PhilHealth disbursement increased by 156 percent from P30.51 billion in 2010 to P78.18 billion in 2014, with the average PhilHealth weekly spending also increasing from P530 million in 2010 to P1.5 billion in 2014. The average value per claim is P10,465 in 2014, an increase from the P7,930 in 2010.

Improved Access to Quality Government Health Facilities

To make PhilHealth coverage and benefit delivery expansion meaningful, the national government enhanced the capacity of government health facilities in order to comply with DOH licensing and PhilHealth accreditation requirements. Through this, people can take full advantage of the benefits they are entitled to and are assured of receiving accessible quality health care. From 2010 to 2014, under the Health Facilities Enhancement Program (HFEP), a total of 2,862 barangay health stations (BHSs), 2,626 rural health units (RHUs)/urban health centers (UHCs),144 685 LGU hospitals, 70 DOH hospitals, and 14 hospitals of other NGAs (e.g., military, police, and SUCs) nationwide were upgraded in terms of infrastructure and equipment to improve access to quality primary, secondary, and tertiary care services, especially by those living in areas far from town centers. From 2015 to 2016, the HFEP will focus on making primary health care facilities ready for accreditation as providers of PhilHealth’s TSeKaP, TB-DOTS, and MCP:

A total of 18,337 existing BHSs145 will be accredited as PhilHealth-TSeKaP centers,146 which will provide access to an estimated 92 million individuals.147 Of this total, 3,886 will be upgraded into birthing facilities to meet the MCP accreditation requirements. This will provide access to MCP services to an estimated 620,000 pregnant women.148

In addition, starting the third quarter of 2015, the national government will construct an additional 6,400 school-based149 BHSs to fill the gap of clustered barangays without existing BHSs. Half of the target is expected to be completed by December 2015 and the other half by June 2016. These school-based BHSs will also be accredited as PhilHealth-TSeKaP centers, and will be complemented with one nurse per BHS under the Nurse Deployment Project.

144 Composed of 1,719 RHUs and 907 UHCs 145 Includes the 2,862 BHSs upgraded through HFEP 146 17,541 BHSs are for upgrading to TSeKaP by December 2015 and 796 BHSs by June 2016. 147 1 BHS : 5,000 population 148 Computation was based on the assumption that 3.5 percent of the 5,000 population per 1 BHS are pregnant

women 149 These BHSs will also serve as school clinics.


A total of 2,617 existing RHUs and UHCs and an additional 6 RHUs and UHCs for construction in 2016 will be accredited with three PhilHealth packages, namely: TSeKaP, MCP, and TB-DOTS. This will result in a total of 2,623 RHUs and UHCs accredited as providers of TSeKaP services to an estimated 52.5 million individuals;150 MCP services to an estimated 1.8 million pregnant women;151 and TB-DOTS services to an estimated 230,000 TB patients.152

The government is also pursuing the modernization of major hospitals under the PPP, such as the Philippine Orthopedic Center (Quezon City), Dr. Jose Fabella Memorial Hospital (Manila), and Cagayan Valley Medical Center (Tuguegarao City). In recognition of their quality and efficient health service delivery, 41 out of 70 DOH-retained hospitals were ISO-certified in 2015. This is in addition to the ISO certification of three DOH-attached agencies (i.e., Food and Drug Administration in 2013, PhilHealth in 2014, and National Nutrition Council in 2015), as well as all DOH regional and central offices in 2013, which made the DOH the first executive government agency to have a department-wide Quality Management System (QMS) certified to ISO 9001:2008. Fielding Health Human Resources to Communities

With the deployment of health human resources nationwide, the need for health professionals in the country’s geographically isolated and disadvantaged areas is augmented. Thus, previously unserved or underserved communities are now able to benefit from the country’s public health programs. As of the second quarter of 2015, the government has deployed 448 doctors153 and 12,237 midwives who annually served an average of 1.7 million and 10.2 million individuals, respectively since 2010; 77,131 nurses154 who annually served an average of 38 million individuals since 2011; and 214 dentists starting 2015 who are each expected to serve an estimated 467,000 individuals.

Advanced Reproductive Health Care

The President signed the Responsible Parenthood and Reproductive Health Act (RA 10354)155 in 2012, after it languished in Congress for more than a decade, reflecting the government’s commitment to guarantee the exercise of the universal basic

150 1 RHU/UHC : 20,000 population 151 Computation was based on the assumption that 3.5 percent of the 20,000 population per 1 RHU are pregnant

women 152 Computation was based on the TB prevalence rate of 438/100,000 population and an assumption of 1 RHU :

20,000 population 153 Under the Doctors to the Barrios (DTTB) Program, where doctors are deployed to doctorless municipalities for a

period of two years. The 448 doctors account only for the aggregate of the newly deployed doctors since 2010 and do not reflect the actual number of doctors deployed annually under the program.

154 Under the Registered Nurses for Health Enhancement and Local Service (RN Heals) from 2011 to 2013, and the NDP from 2014 to present

155 An Act Providing for a National Policy on Responsible Parenthood and Reproductive Health, signed on 21 December 2014


human right to reproductive health and the promotion of gender equality and equity through informed choices on reproductive health.

3. Empowered the Poor and Marginalized towards Self-Reliance

Recognizing the need to provide focused and purposive interventions for the poor and the marginalized to enable them to participate in the country’s development, the government intensified its social protection programs and improved avenues that will enhance their access to basic needs and opportunities. Updating the National Household Targeting System for Poverty Reduction The NHTS-PR or Listahanan is an information management system that identifies who and where the poor are nationwide through family assessments. The government allotted P1.94 billion156 for the mandated updating of the NHTS-PR 2009 database,157 which started in March 2015 and is expected to be finished in January 2016. The updating of said database involves the second round of assessment of the targeted 15.3 million households nationwide that will eventually identify the bottom 40 percent of the population,158 determine the poor, near-poor,159 and non-poor, and help the government provide interventions that suit each group’s needs. To address possible inclusion and exclusion errors,160 the enhanced Proxy Means Test161 model will be used, a component of which is the Second Stage Screener that requires the posting in conspicuous places of the initial lists of poor families for validation of the communities where they live.162

Expanded the Pantawid Pamilyang Pilipino Program (Pantawid Pamilya) Pantawid Pamilya is the government’s primary poverty alleviation program that provides conditional cash grants of at most P2,000 per month163 to the poorest

156 An Act Appropriating the Sum of P22,467,608,000.00 as Supplemental Appropriations for FY 2014 and for Other

Purposes (RA 10652) signed on 23 December 2014. 157 Per EO No. 867, s. 2010, the NHTS-PR should be updated every four years. 158 Using Family Income and Expenditure Survey and Labor Force Survey non-income variable predictors 159 Identification of the near-poor is a measure to prevent them from sliding down the poverty line in case of shocks

(e.g., sickness in the family, natural disasters, loss of job). 160 Inclusion error is when a non-poor family was classified as poor using the Proxy Means Test, while exclusion

error is when a poor family was classified as non-poor using the Proxy Means Test. 161 A statistical tool wherein a model is developed to determine the poverty status of households without using

reported income as reference. It is used to approximate the family income based on household information of the families to be surveyed such as family assets, occupation/livelihood, educational attainment, type and condition of house, and access to basic services.

162 This enables the community to transparently review the accuracy of the initial list of poor, near poor, and non-poor. Families who were not visited during the first enumeration are also given the chance to apply for assessment. Local Validation Committees are organized to resolve all complaints during the validation period.

163 The health grant is P500 per household per month, while education grant, which covers 10 months a year (excluding April and May), is P300 per child in elementary school and P500 per child in high school at a maximum of three children per household. The amount of grants depends on the monthly compliance of the eligible members (pregnant mothers and maximum of three children) enrolled in the Program.


households, subject to fulfilling their responsibility164 of keeping their children healthy and in school, thus investing in their future. This gives them the opportunity to break away from the cycle of intergenerational poverty, while providing them much-needed immediate financial support. The government increased the budget for the Program to more than P62 billion in 2015, six times that of the P10 billion in 2010.

Toward fulfilling its target to cover all 5.2 million eligible poor households listed in the NHTS-PR 2009 database, Pantawid Pamilya increased its coverage annually from 786,523 poor households as of 30 June 2010 to 4.4 million165 poor and indigenous households and street families with 0 to 18 years old children as of 24 June 2015. Mindful of the importance of the fast delivery of cash grants to beneficiaries, the government expanded access to these. From the over-the-counter and cash card transactions in LANDBANK before this Administration, beneficiaries can now also get their grants through rural banks, cooperatives, and remittance and money transfer shops (i.e., Globe’s cash pick-up service GCASH REMIT outlets, M Lhuillier, and LBC Express, Inc.). The gains from the Program are reflected in the 2014 Impact Evaluation results, which showed significant differences between the status of Pantawid Pamilya and non-Pantawid Pamilya beneficiaries in health and education.166

164 Where a) pregnant mothers must avail of pre- and post-natal care and delivery services of skilled health

professionals; b) children 0 to 14 years old must avail of immunization, weight monitoring, nutrition counseling, and childhood diseases management services, and receive deworming pills; c) children 3 to 18 years old must be enrolled in and regularly attend day care/pre-, elementary, and high school; and d) parents or guardians must attend Family Development Sessions and participate in community activities

165 Equivalent to 4,391,768 households and street families 166 Conducted by a research team led by Dr. Aniceto Orbeta, Jr., the study covered a nationally representative

sample of 5,041 households from 30 municipalities (10 each in Luzon, Visayas, and Mindanao) in 26 provinces, which were registered in the Program between 2008 and 2011 and have thus been exposed to the Program for two to four years at the time of data collection from October to December 2013. The study compared poor (eligible) and near poor (not eligible) households, which are considered to have similar characteristics.


Table 17: Final Findings of the 2014 Impact Evaluation of Pantawid Pamilya Gains and Related Indicators Pantawid Pamilya Non-Pantawid Pamilya

Improved children’s access to selected key health care services

Children under 6 years old receiving

iron supplements; and

Vitamin A tablets

35% 86%

23% 74%

Children undergoing weight monitoring

regular monthly (0–2 y/o)

regular bi-monthly (3–5 y/o)

19% 49%

12% 25%

Children 6–14 y/o receiving deworming pills at least once a year

78% 69%

Kept older children in school

Enrollment of children 12–15 y/o 95% 89%

Attendance of 3-5 y/o children (85% of school time)

94% 55%

Prioritized spending for education

Education expenditure (per school-aged child in pre-school and elementary per year)

P458.42 P251.82

Steered parents to aspire for a better future for their children

Parents think their child will finish college 74% 68%

Parents think their child will have a better future compared to them

87% 81%

Source: Pantawid Pamilya Second Wave Impact Evaluation Results, 20 November 2014

Furthermore, starting in June 2014, the Expanded Conditional Cash Transfer (ECCT) was implemented, extending the age coverage from 0–14 to 0–18 years old (taking into account the K to 12 Basic Education Program) and increased the education grant for children in high school from P300 to P500. These increased the opportunity for children of covered households to complete secondary education. In SY 2014–2015, there were 1.844 million167 12–18 year-old children in high school, 333,673 of which were the first batch to graduate in 2015. This batch is 99 percent of the total 337,685 Pantawid Pamilya senior high school in SY 2014–2015.168 Notably, 13,469 of the graduates received academic and non-academic awards.169 As of 23 July 2015, 78,994 of the graduates have signified interest to go to college, and another 5,960 are interested to pursue technical-vocational courses, while 20,820 prefer to immediately look for job or livelihood opportunities.170 For SY 2015–2016, the number of beneficiaries in high school increased to 1.845 million as of June 2015.171 The expansion of age coverage of Pantawid Pamilya was based on a PIDS study172 conducted in 2013, which pointed to the importance of helping children beneficiaries finish high school. It revealed that an elementary graduate can earn 10 percent higher

167 Based on Pantawid Pamilya March 2015 compliance data 168 The remaining 4,012 students were not able to graduate due to either of the following: (i) financial problems that

compelled them to work or stay at home to take care of their younger siblings; or (ii) armed conflicts and disasters that had an effect on their school attendance.

169 A total of 1,312 are valedictorians and 1,024 are salutatorians. 170 The figures mentioned constitute graduates profiled based on partial submissions from 10 regions (i.e., Regions

I, II, III, IV-A, IV-B, V, VIII, IX, XII, and NCR). The DSWD awaits for the reports of the remaining seven regions (i.e., CAR, VI, VII, X, XI, CARAGA, and ARMM).

171 Based on May and June compliance data 172 PIDS Policy Note No. 2013-02 (February 2013), “Pantawid Pamilyang Pilipino: Why “deepening” matters in

achieving its human capital objectives,” Celia M. Reyes and Aubrey D. Tabuga.


than an elementary undergraduate, and that a high school graduate, on average, could earn 40 percent higher than that of an elementary undergraduate. Implemented Social Pension for Indigent Senior Citizens Pursuant to RA 9994 or the 2010 Expanded Senior Citizens Act,173 the Social Pension for Indigent Senior Citizens was first implemented in March 2011 to augment the daily subsistence and medical needs of indigent senior citizens with a P500-monthly pension. Eligible beneficiaries are those 65 years old and above174 poor who are either identified through the NHTS-PR or by the LGUs and are validated by the Office of Senior Citizens Affairs, particularly those who have no regular source of income, pension, insurance, or any other financial support from their family or relatives. From 2011 to May 2015, Social Pension served 937,556 senior citizens. For 2015, 939,609 senior citizens are eligible to receive pension.

Figure 17: Social Pension Beneficiaries and Pensions Released

Notes:

The other portion of the budget not released as cash grants is allocated for administrative costs.

As of 30 June 2015, a total of 360,970 pensioners or 74.4 percent of the 2014 target received their pensions covering all months of 2014. Pay-out for the remaining 124,204 is ongoing and will be completed by August 2015. Meanwhile, 398,760 pensioners or 42.4 percent of the 2015 target have received their pension for the first quarter of 2015. A total of 793,143 or 84 percent of the 2015 target have been included in the payroll.

Source: DSWD

173 An Act Granting Additional Benefits and Privileges to Senior Citizens, Further Amending Republic Act No. 7432,

as Amended, Otherwise Known as "An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes" signed on 15 February 2010

174 The Program originally covered only those 77 years old and above from 2011 to 2014 due to budget limitations. A significant increase in budget allocation for the Program in 2015 enabled the expansion of age coverage to those at least 65 years old poor, qualified social pensioners.

2011 2012 2013 2014 30-Jun-15

Target Beneficiaries 138,960 185,194 232,868 485,174 939,609

Pensioners 138,960 211,657 255,763 485,174 398,760

Program Budget 871.00 1,227.46 1,532.95 3,108.91 5,962.63

Cash grants released 833.76 1,115.48 1,382.03 2,098.18 605.42

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500,000

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Promoted Gender Equality and Development in the Philippines The government, with the Philippine Commission on Women as lead, worked to promote equal gender opportunity and women empowerment in its policies and programs. To provide women with equal access to employment opportunities, RA 10151175 was signed into law on 21 June 2011, repealing the provisions of the Labor Code that prohibit night work for women. In addition, the law further expands provisions on health, maternity, and wellness benefits for the adequate protection of night workers. The enactment on 15 July 2014 of RA 10644 or the Go Negosyo Act intensified entrepreneurship in the country, as LGUs and other government agencies further boosted the assistance to MSMEs for them to grow and flourish. Considering that 95 percent of microenterprises involve women, accelerating support to micro-enterprises mostly owned by women facilitated the provision of jobs to a significant segment of the labor force. The TESDA also collaborated with Coca-Cola Philippines, LGUs, NGOs, and microfinance institutions to implement the Sari-Sari Store Training and Access to Resources (STAR) Program, which aims to provide beneficiaries with access to trainings on gender-based values and entrepreneurship skills, business planning and managing (including bookkeeping and managing income and expenses), among others. It is part of Coca-Cola’s 5by20 Program, which aims to economically empower five million women within its value chain worldwide by 2020. In the Philippines, it aims to benefit 200,000 women retailers. From December 2011 to June 2015, the STAR program benefited 34,414 beneficiaries, of whom 33,315 have graduated from the identified trainings. The Philippines ranked 9th in the WEF’s 2014 Global Gender Gap Index, which measures how well countries divide resources and opportunities among their male and female population, particularly in four areas: economic participation and opportunity, educational attainment, political empowerment, and health and survival. It is the only Asian country in the top ten of the said index. In recognition of these efforts, the President as one of the ten world leaders invited by the UN Women, will serve as a Champion World Leader in its HeForShe Campaign, which encourages men and boys to speak out and take action against inequalities faced by women and girls.

175 An Act Allowing the Employment of Night Workers, thereby Repealing Articles 130 And 131 of Presidential Decree

Number Four Hundred Forty-Two, as Amended, Otherwise Known as the Labor Code of the Philippines


JUST AND LASTING PEACE AND THE RULE OF LAW Peace and security are essential to sustain national development and improve the collective welfare of the people. Towards this, the government focused its efforts on ensuring the attainment of a just, comprehensive, and lasting peace, by preserving national sovereignty, promoting public order and safety, protecting human rights, and strengthening the rule of law. 1. Protected our National Territory and Boundaries

To protect our national territory, the government remained steadfast in upholding its rights to its territories and in its commitment to strengthen and capacitate our armed forces. Upheld the Rule of Law in Resolving Maritime Disputes The Philippines’ resolute stance on the West Philippine Sea issue—one that is rules-based and anchored on the concept of a peaceful settlement of disputes in accordance with international law—cast international spotlight on the disputes in the South China Sea and its impact on the peace and stability of the region. In the face of persistent provocative actions, the Philippines has honored its commitment to uphold the rule of law by resorting to international arbitration and adhering to the principle of self-restraint embodied in the 2002 ASEAN-China Declaration on the Conduct of Parties in the South China Sea (DOC). Initiated in January 2013, the Philippines’ arbitral case is expected to receive a decision from the Arbitral Tribunal by the first half of 2016. The Philippines’ position has been instrumental in shaping global opinion on the issue, with various nations joining the country’s call for freedom of navigation and overflight, respect for international law, peaceful resolution of the disputes in accordance with the 1982 UN Convention on the Law of the Sea, and the expeditious conclusion of a Code of Conduct in the South China Sea (COC).

In a joint press conference in April 2015, Japan and the US issued statements supporting the Philippines’ stance. Japanese Prime Minister Shinzo Abe expressed “resoluteness in opposing unilateral attempts to change the status quo in whatever form,” while US President Barack Obama reiterated the US’ “commitment to freedom of navigation, respect for international law” and the “peaceful resolution of disputes.” Both leaders also denounced the use of coercion or intimidation.

Similarly, in June 2015, the G7 Leaders176 addressed in its Summit Declaration the tensions in the South China Sea, underscoring their commitment to a “rules-

176 G7 is an informal bloc of industrialized democracies—France, Germany, Italy, the United Kingdom, Japan, the

United States, and Canada—that meets annually to discuss issues of common interest like global economic governance, international security, and energy policy.


based order in the maritime domain based on the principles of international law” and “the importance of peaceful dispute settlement as well as free and unimpeded lawful use of the world’s oceans.” They also expressed strong opposition to “the use of intimidation, coercion or force, as well as any unilateral actions that seek to change the status quo, such as large scale land reclamation.”

Others who are supportive of the Philippines’ call for the peaceful resolution of disputes include the ASEAN, the EU, Australia, and New Zealand. Both the ASEAN and the EU have consistently called for the full and effective implementation of the DOC and the expeditious conclusion of the COC.

Enhanced the Defense Capabilities of Our Security Forces

The government prioritized the capability enhancement of the AFP through the AFP Modernization and Capability Upgrade Program (AFPM/CUP) with the enactment of the Revised AFP Modernization Program Act (RA 10349) in December 2012. The law extended the implementation of the AFPM/CUP under the AFP Modernization Program Act of 1995 (RA 7898) to complete the requirements of the previous program and to develop the AFP with shifting capability to address Humanitarian Assistance and Disaster Response, internal security, and external threats. Under this Administration, P50.73 billion177 was released for the AFPM/CUP from July 2010 to June 2015, exceeding by a wide margin the releases of previous administrations.

Table 18: Fund Releases for the AFPM/CUP

Administration Amount

(in P billion)

Aquino (2010–June 2015) 50.73

Arroyo (2001–2010) 26.22

Estrada (1998–2001) 5.53

Ramos (1995–1998) 0a a The Old AFP Modernization Act (RA 7898) was enacted on 23 February

1995 and Congress issued Joint Resolution No. 28 (JR 28) on 19 December 1996, which embodies the 15-year implementation period of the AFPM/CUP, along with the approval of the fund requirements to implement it. However, no releases were made from 1997 to 1999 due to the Asian financial crisis, the 1998 National Elections, and the eruption of hostilities in Mindanao.

Source: DND

177 This amount includes the P19.09 billion released for the AFPM/CUP projects under RA 10349.


During this Administration, a total of 56 projects were completed compared to the 45 projects completed during previous administrations. Most of the big military hardware completed include:

Table 19: Completed AFPM/CUP Projects (July 2010–July 2015)

Project Recipient Date Completed

Weather High Endurance Cutter (WHEC): BRP Gregorio del Pilar & BRP Ramon Alcaraz

PN December 2011 and November 2013

Landing Craft Utility: BRP Tagbanua, the first locally-built landing craft utility

PN 22 November 2011

8 Sokol Combat Utility Helicopters PAF 11 March 2013

5 AW-109 Naval Helicopters PN 3 units on 16 December 2013 and 2 units on 21 July 2015

18 Basic Trainer Aircraft PAF 28 June 2011

60 Field Ambulances PA 28 January 2013

347 1¼ ton Troop Carrier Trucks 327 units for PA 20 units for PN

137 units on 30 November 2010, 20 units on 10 November 2011, and 190 units on 3 July 2013

270 2½ ton Troop Carrier Trucks 250 units for PA 20 units for PN

250 units on 7 February 2011 and 20 units on 10 November 2011

Source: DND

Under RA 7898, the AFP is procuring various equipment and air and naval assets aimed at further enhancing its capability in the performance of multiple roles, from combat operations to humanitarian assistance and disaster response. In addition, under RA 10349, the government is implementing 30 projects worth P83.92 billion to develop our armed forces’ core capabilities, particularly in both maritime and air domain awareness. The ongoing projects under the two laws include the following:

Table 20: Ongoing AFPM/CUP Projects Project Recipient Target Date of Completion

142 Armored Personnel Carriers PA 6 units delivered; Remaining 136 units within 2015

49,135 Force Protection Equipment

41,560 units for PA 6,000 units for the Philippine Marine Corps 1,575 units for the General Headquarters

44,080 units within 2015, 1,575 units within 2016, and 3,480 units for procurement

2,884 40 mm Grenade Launchers PA Within 2016

74,251 Assault Rifles 66,439 units for PA 7,812 units for Philippine Marine Corps

50,629 units delivered; 12,657 units within (Q4) 2015, and 10,965 units within 2016

8 AW-109 Attack Helicopters PAF 2 units delivered; Remaining 6 units within 2015

2 C-212 Light Lift Aircraft PAF Within 2015

3 C-295 Medium Lift Aircraft PAF 1 unit delivered; Remaining 2 units within 2015


Table 20: Ongoing AFPM/CUP Projects Project Recipient Target Date of Completion

2 Strategic Sealift Vessels PN 1 unit in May 2016 and the other unit in May 2017

5 Landing Craft Heavy PN 2 units to arrive on 08 August 2015a; Remaining units for procurement

12 FA-50 Aircraft PAF 2 units to be delivered in December 2015 while the remaining units shall be delivered in batches of 2 until 2017

8 Bell-412 Combat Utility Helicopters PAF 6 units delivered; Remaining 2 units within 2015

2 Frigates PN 2018

2 Long Range Patrol Aircraft PAF 2017

6 Close Air Support Aircraft PAF 2017

2 C-130 Aircraft PAF (Q3) 2016 a The two Landing Craft Heavy came from Australia, who also provided spare parts and brand new generators.

Source: DND

The AFP also conducted the repair and recovery of existing assets, which include two C-130 aircraft in 2012 and one landing craft utility (BRP Manobo) in 2011, among others. One of the two C-130 aircraft was completely repaired and recovered in the country by the 410th Maintenance Wing of the Philippine Air Force, while the other one was repaired in the US. BRP Manobo is the former BU-297 commissioned on 23 June 1988, which was repaired and reactivated in March 2011.

2. Ensured Public Order and Safety

To sustain its efforts in ensuring peaceful and safe communities, the government strengthened and enhanced the capability of its security forces while also ensuring their welfare. Arrested High-Value Targets From 2010 to 2015, government authorities178 neutralized 129179 high-value targets, arrested 162,988 wanted persons,180 neutralized 1,096 criminal gangs, and recovered 29,294 loose firearms. Among the high-value targets and wanted persons neutralized are terrorists Zulkifli bin Hir aka Marwan, Abdul Basit Usman, former BIFF Vice Chairman Mohammad Ali Tambako, BIFF leader Abdulgani Esmael Pagao, the CPP Acting Chair Benito Tiamzon, CPP Secretary-General Wilma Tiamzon, and NPA Commander Leoncio “Kumander Parago” Pitao, Ruben Saluta, and Emmanuel Bacarra.

Pursued the Normalization of CPP-NPA-NDF181 (CNN)-Affected Communities Forty-six (46) out of the 76 CNN-affected provinces182 have begun the normalization process, whereby the AFP, PNP, the Provincial Government, and other stakeholders

178 Either through AFP operations, PNP operations or AFP-PNP Joint Operations. 179 Of this number, 16 were killed, 100 were arrested, and 13 surrendered. 180 Some of the high-value targets of the AFP also belong to the wanted persons of the PNP. 181 Communist Party of the Philippines – New People’s Army – National Democratic Front (CNN) 182 The AFP includes Davao City, a chartered city, in this count.


declare a province as peaceful and where conflict is manageable, which will then pave the way for the implementation of projects that can contribute to economic growth, tourism promotion, and other developments in the area. Enhanced Logistical Requirements for the Public Safety Corps

To ensure that the uniformed personnel are adequately equipped to perform their duties, the government is procuring the following:

Table 21: Select Projects Under the PNP Capability Enhancement Program

Items Distributed

(as of 23 July 2015) Target Date of Distribution of Remaining Units

2,523 Patrol Jeeps 302 1,168 units will be distributed by October 2015. The remaining 1,053 units are currently under various stages of procurement.

577 Utility Vehicles 179 The remaining 398 units are currently under various stages of procurement

5,736 Motorcycles 884 The remaining 4,852 units are currently under various stages of procurement

621 Firetrucks 76 The remaining 545 units will be distributed within 2016

130 Prisoner Vans 65 The remaining 65 units will be distributed within 2016

30,136 Long Firearms - Still subject for procurement

29,266 Handheld Radios 12,399 The remaining 16,867 units are currently under various stages of procurement

3,328 Investigative Kits - Still subject for procurement

523 CCTV Systems 315a The remaining 208 units will be installed within 2015 a In January 2015, the PNP installed 172 CCTV cameras in five PNP District Offices and 38 police stations to

ensure transparency and deportment of police personnel in police stations. Moreover, under the Project SAFE KAm, which was launched in May 2015, the PNP installed 143 of the targeted 351 CCTV cameras in various crime-prone locations in NCR. The installation started in May 2015 and is on-going. The CCTV cameras were installed in various identified crime-prone areas in Pasig, Pasay, Makati, Quezon City, Manila, Mandaluyong, and Caloocan.

Source: PNP

Moreover, under the proposed 2016 PNP Capability Enhancement Program, the government will also procure 10,000 9mm pistols, 25 vans for the PNP Crime Laboratory, handheld radios, and investigative equipment, such as Automated Fingerprint Identification System and DNA machine.

Notably, the PNP, for the first time, achieved a 1:1 police-to-pistol ratio for its personnel in 2013, with the procurement of additional 74,879 units of Glock 17 9mm pistol. Likewise, the BJMP, for the first time since its establishment, achieved a 1:1 jail officer-to-pistol ratio for its jail officers in 2014, with the procurement of additional 5,414 units of Taurus 9mm pistol.

Traditionally, the PNP relied only on police blotters in accounting for crime data. Starting 2013, it adopted the Crime Incident Recording System (CIRS), wherein barangay blotters and crime incident reports183 from other law enforcement agencies, such as PDEA, BFAR, DENR, DSWD, and NBI, were also used in determining crime volume. Through the new system, the PNP is able to keep track of the types and frequency of crimes committed in various areas, and thus respond appropriately.

183 The two added parameters combined represent 48 percent, which is almost half of the overall total crime volume.


Table 22: National Crime Situation

2010 2011 2012 2013a 2014

Jan-June 2015

Total Crime Volumeb 319,441 241,988 217,812 1,238,817c 1,161,188 509,924

Crime Solution Efficiency (CSE) Rated

18.64% 28.87% 36.67% 38.49% 41.72% 50.14%

a Figures for the 2013 TCV and CSE Rate was updated through the validation conducted by the PNP. b Figures include all crimes recorded by the police precincts and exclude crimes reported to National Support Units

(NSUs) to avoid duplication, since crimes are likely reported to police precincts first before being elevated to NSUs. The exclusion of NSUs in the computation of the TCV and CSE only started around end-2012. However, 2010 and 2011 figures were also adjusted for comparison purposes.

c The 2013 figure increased due to PNP’s adoption of the CIRS. While the TCV comprises PNP blotters, barangay blotters, and reports from other law enforcement agencies, the CSE rate only measures the CSE for the PNP blotters.

d CSE Rate is the percentage of solved cases out of the total number of crime incidents handled by the PNP for a given period of time. A case shall be considered solved when all of the following elements concur: a) the offender has been identified; b) there is sufficient evidence to charge him/her; c) the offender has been taken into custody; and d) the offender has been charged before the prosecutor’s office or court of appropriate jurisdiction. A case shall also be considered solved when some elements beyond police control prevent the arrest of the offender, such as: a) when the victim refuses to prosecute after the offender is identified; or b) the offender dies or absconds.

Source: PNP

Based on the crime statistics and analysis generated through the CIRS, the PNP launched the Oplan Lambat-Sibat Program in 2014 to address criminality in Metro Manila. The Program is a fusion of two PNP programs: 1) Operation Lambat, a campaign launched in June 2014 against unregistered motorcycles and firearms through the implementation of checkpoints, the issuance of warrants of arrest, the surprise inspection in communities to check documents of motorcycles, the conduct of visits to identified holders of firearm licenses for checking of validity, and the frisking of suspicious persons for weapons; and 2) Oplan Sibat, a program launched in August 2014 that aims to track down the most wanted persons identified by the NCR Police Office and stations.

Since its launching, the Oplan Lambat-Sibat in NCR has accomplished the following:

Reduced the average of murder/homicide cases from 37 per week (January to June 2014) to 23 per week by end of June 2015;

Reduced the number of robbery, theft, and carnapping of four-wheeled vehicles and motorcycles from an average of 919 cases per week (January to June 2014) to 444 cases per week by end of June 2015;

Arrested 448 of the 603 Most Wanted Persons (MWPs)184 in NCR; and

Arrested 302 out of 466 criminal gang members.185

One of the reasons to which the PNP attributes the decrease in crime volume is the arrest of the MWPs, particularly through the Oplan Lambat-Sibat. Among the MWPs arrested through the said program186 is Dexter Balane, leader of the Balane Group, which is linked to the Martilyo Gang operating in Metro Manila and Mindanao. The groups were allegedly involved in the robbery incidents in several malls in Metro

184 Refer to notorious persons whose arrest is prioritized and most sought as this will provide relief and comfort to

the community 185 Refer to persons who have common identifying signs or symbols and engage or have engaged in a pattern of

criminal activity, creating an atmosphere of fear and intimidation within the community or a specific area 186 The leader was arrested on 20 July 2015 in Iloilo thorough a joint PNP-AFP operation.


Manila in 2013, using hammers, wrenches, and crowbars to smash glass display cases of jewelries and other valuable items. Given the success of Oplan Lambat-Sibat in Metro Manila, the Program is currently being rolled out in Regions 3 and IV-A. Promoted the Welfare of Uniformed Personnel Aside from providing additional manpower and enhancing logistical capabilities, the government also addressed the long-standing housing needs of low-income personnel of the AFP and PNP, as well as other uniformed personnel (BFP, BJMP, and BuCor). Under the Housing Program’s 30-year amortization schedule, personnel will pay P200 monthly for the first four years, up to P1,330 for the 30th year. As of 25 June 2015, a total of 57,328 housing units have been completed.

Table 23: Status of the AFP/PNP Housing Program as of 25 June 2015 Indicator Phase 1 Phase 2 Phase 2A Phase 3 Phase 4

Budget P5.1 billion P8.5 billion P1.6 billion P5.46 billion P0.1 billion

Timelinea

May 2011–March 2012

March 2012–June 2015

July 2014–December 2015

June 2014–April 2016

December 2016

Housing Units to be Built

24,298 31,200 5,863 20,000 341

AFP 10,900 14,040 2,638 9,000 153 PNP 10,900 14,040 2,638 9,000 153 BFP 1,498 1,560 293 1,000 17 BJMP 1,000 936 176 600 11 BuCor – 624 118 400 7

No. of Sites and Locations

15 sites in Luzonb

31 sites in 14 regions

nationwide


nationwide


nationwide

1 site in Mindanao

Status

Completed 24,298 units

(100%)


(99%)


(25%)

Completed 715 units (4%)

N/A

Housing Units Awarded to Program Beneficiaries (Responsibility of the Housing Boards)

All units turned over by NHA to

the AFP and PNP Housing Boards as of March 2013

Initial move-in/occupancy of

AFP, PNP, BJMP, and BFP

is ongoingc

N/A N/A N/A

a Timelines have been adjusted due to delays encountered involving right of way and land registration issues, as well as difficulties in land acquisition and documentary works, among others.

b Located in Bulacan, Cavite, Laguna, and Rizal c NHA is waiting for the final assignment/allocation of housing units from BuCor.

Source: NHA

To further ensure the promotion of our soldiers’ welfare, the President issued EO No. 15, which grants AFP personnel who actually engage in combat operations a monthly combat allowance of P260 in addition to their existing P240 combat duty pay. On 27 March 2015, the President also approved the increase in subsistence allowance187 of all uniformed personnel from P90 per day to P150 per day effective January 2015. Payment for the January to April differential was made in April 2015.

187 A regular type of allowance given to all uniformed personnel to defray the cost of their daily regular meals.


The government is committed to instituting economically viable reforms in the pension system of the uniformed personnel to balance current needs with past obligations and make it fiscally sound and sustainable. If the present system continues, the pension appropriated out of the national budget will, in time, overtake the salary paid to active servicemen. A bill addressing these concerns will be filed in Congress.

3. Pursued Efforts for Peace and Development in Mindanao

As part of its commitment to achieve inclusive growth where no one is left behind, the government took decisive steps toward attaining lasting peace and development in Mindanao—a breakthrough in the decades-long quest for the cessation of hostilities in the region.

Pursued Efforts for Just and Lasting Peace

After 17 years of negotiations, the government and the Moro Islamic Liberation Front (MILF) signed on 27 March 2014 the Comprehensive Agreement on the Bangsamoro (CAB), the fruit of the government efforts to pursue a sincere, inclusive, and transparent peace process. The CAB contains important provisions on: a) delineation of powers between the national government and the Bangsamoro government; b) revenue generation and wealth-sharing; c) transition process; and d) normalization process, which includes the turnover of weapons and the rehabilitation of conflict-affected areas. In February 2013, four months after the signing of the Framework Agreement on the Bangsamoro, the government launched the Sajahatra Bangsamoro Program to implement quick-gestation, high-impact socio-economic projects focusing on education, health, and livelihood for MILF-identified communities. As of 30 June 2015, the status of these projects are as follows:

On education, 639 beneficiaries were enrolled under the College Study Grants Program for AY 2014–2015, while 1,000 were provided technical and vocational training. Forty-four (44) Madaris188 received grants and 3 day care centers189 are being constructed.

On health, 11,000 beneficiaries were enrolled and covered under PhilHealth in 2014 and 2015, and 3,092 children benefit from the feeding program. Three (3) BHSs190 were also completed.

On livelihood, 11,000 individuals benefited from cash-for-work. Six communities191 were provided development assistance, such as farm inputs that include equipment and working animals. Small-scale infrastructure projects, such as FMRs192 are in various stages of construction.

188 Madaris are Islamic schools for children that focus on reading, writing, and arithmetic. 189 Basilan, Davao Oriental, and Lanao del Norte 190 Davao Oriental, Lanao del Sur, and South Cotabato 191 Davao Oriental, Lanao del Norte, Maguindanao, North Cotabato, South Cotabato, and Zamboanga Sibugay 192 Basilan, Lanao del Norte, South Cotabato, Sulu, Tawi-Tawi, and Zamboanga Sibugay


The Bangsamoro Basic Law (BBL) filed in Congress in September 2014 shall establish the new Bangsamoro political entity and shall enforce the agreements reached in the CAB. On 27 March 2015, the President announced the creation of a Peace Council, composed of civil society leaders193 to objectively evaluate the draft BBL with the end in view of helping the general public understand the said draft. In its report on 27 April 2015, the Peace Council recommended its passage, offering recommendations on some provisions that require refinement. It likewise stressed the need to a) acknowledge that the 2014 CAB and the BBL were built on the gains made during the GPH-Moro National Liberation Front (MNLF) peace process; and b) communicate the continuity between these two peace processes.

Alongside MILF-MNLF peace processes convergence efforts is the normalization process, which aims to rehabilitate conflict-affected areas and transform these Fronts into socio-economic groups following the turnover of their firearms in exchange for social packages. On 16 June 2015, the MILF initially turned over 75 crew-served194 and high-powered weapons and decommissioned 145 combatants, which jumpstarts the decommissioning of weapons and combatants as part of the normalization process.195

Implemented ARMM Reforms as Groundwork for Inclusive Peace and Development

According to the Internal Displacement Monitoring Centre, since 2000, the conflict in the ARMM has resulted in tens of thousands of deaths and has displaced more than 3.5 million people.196 In a 2011 study conducted by the World Bank on the impact of conflict in Mindanao, displaced families were driven to long-term development problems, such as poor access to social services, reduced income, and lack of trust in institutions.197 This contributed to the ARMM’s high poverty incidence and also weakened government institutions, which made them susceptible to manipulation. The COA Special Audit Report 2010-01 revealed that from January 2008 to September 2009, government transactions amounting to P1.003 billion were expended against COA rules.

193 The Peace Council was composed of Manila Archbishop Luis Antonio Cardinal Tagle, former Chief Justice Hilario

Davide Jr., businessman Jaime Augusto Zobel de Ayala, former Philippine Ambassador to the Holy See and Malta Howard Dee, and founder of Teach Peace, Build Peace Movement Bai Rohaniza Sumndad-Usman.

194 These are weapons designed for use by two or more persons serving as “crews” (e.g., 60 mm mortar, 81 mm mortar, RPG-2, and RPG-7).

195 To be done in four phases, it is the process of putting the weapons of the MILF beyond use and the process of allowing a smooth transition for MILF combatants to productive civilian life.

196 Internal Displacement Monitoring Centre, “Philippines: Internal displacement in brief,” as of December 2013, http://www.internal-displacement.org/south-and-south-east-asia/philippines/summary#.

197 Internal Displacement Monitoring Centre, “Can Mindanao’s new peace agreement help end displacement?” 02 April 2014, http://www.internal-displacement.org/blog/2014/can-mindanaos-new-peace-agreement-help-end-displacement; World Bank, “Violent Conflicts in Mindanao and Displacement in Central Mindanao,” published in December 2011, http://www-wds.worldbank.org).


Given these problems, the government saw the need to institutionalize reforms. To pave the way for these, the President signed into law RA 10153198 in 2011, synchronizing the ARMM elections with the national and local elections. In line with this, interim regional officials were appointed to ensure that the reforms will be executed and sustained.

All ARMM regional line agencies now disclose their funds and projects in compliance with the Transparency Seal. All bids notices are also published in the PhilGEPS website, making bidding for government projects transparent and competitive. The submission and publication of government personnel’s SALN is also being strictly enforced, while cash advances, which comprised 80 percent of the unliquidated disbursements in the past, have been disallowed beginning 2012.

The ARMM passed the Regional Assembly Public Works Act199 in 2012, which required the publishing of bid invitations online and in newspapers, removed lump sum appropriations, and prohibited the re-gravelling200 of roads. These reforms generated savings totaling P250.28 million from 2011 to June 2014, which were used to fund the renovation and repair of ARMM government structures, and the acquisition of heavy equipment and vehicles needed for infrastructure development in the region. In support of the initiatives of the ARMM Regional Government, the national government consistently increased the budget allocation for ARMM from 2011 to 2015, most of which were allocated for economic and social services in areas previously not reached by the government.

Figure 18: Budget Allocation for ARMM (2008–2015)

Source: DBM

198 An Act Providing for the Synchronization of the Elections in the Autonomous Region in Muslim Mindanao (ARMM)

with the National and Local Elections and for other purposes. 199 This Act was carried on to succeeding Regional Assembly Public Works Act. According to Article VI, Section 20

of The Organic Act for the ARMM (RA 9054), “The annual budget of the Regional Government shall be enacted by the Regional Assembly. Funds for infrastructure in the autonomous region allocated by the central government or national government shall be appropriated through a Regional Assembly Public Works Act. Unless approved by the Regional Assembly, no public works funds allocated by the central government or national government for the Regional Government or allocated by the Regional Government from its own revenues may be disbursed, distributed, realigned, or used in any manner.”

200 Re-gravelling of roads was prohibited as it was seen as an ineffective means of road improvement, leaving the roads easily eroded during the rainy season. It is also prone to corruption as its hasty and incomplete implementation can be easily justified.

8.77 9.99 10.411.85 12.46

14.05

20.52

25.23

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015

Am

ou

nt (i

n P

bill

ion

)


From 2011 to 2015, the DPWH allocated P164.82 billion for roads, bridges, and other infrastructure projects in Mindanao. Of this amount, P13.74 billion was allotted for ARMM projects. From July 2010 to March 2015, the DPWH constructed, improved, and rehabilitated a total of 5,545 km of roads and 24,224 lm of bridges in Mindanao.

Table 24: Infrastructure Funding for Mindanao

Region 2011 2012 2013 2014 2015 Total

Regions IX-XIII 12.97 18.44 25.19 34.35 60.14 151.09

ARMM 1.02 1.52 2.40 3.23 5.57 13.74

Total Mindanao 13.99 19.96 27.59 37.58 65.70 164.82

Source: DPWH

In 2014, for the first time in the ARMM, an international business conference was held in Tawi-Tawi that was attended by more than 400 businessmen from Malaysia, Brunei, Indonesia, and Japan. This resulted in investment pledges with combined amount of P974 million for various industries, such as palm oil, power generation, and seaweeds trading. This also gave rise to exploratory discussions on investment ventures on the importation of grains, coffee, and coconut products, among others. The event manifests increasing investor interest and confidence in the region, and illustrates the potentials for growth in the ARMM brought about by peace and good governance in the region.

4. Advanced and Protected Human Rights

To complement its efforts in ensuring peaceful and safe communities, the government implemented programs and enforced measures toward the advancement and protection of human rights.

Promoted a Culture of Respect for Human Rights

Demonstrating its commitment to resolve cases of extra-legal killings, enforced disappearances, and torture and promote a culture of respect for human rights, the government created in 2012 a high-level inter-agency committee201 that introduced innovations in case resolution, such as the institution of a cooperative mechanism between prosecutors and law enforcers, where designated prosecutors would lead special teams that investigate,202 prosecute, and monitor new, existing, and unsolved cases.

201 IAC is composed of the heads of DOJ, DILG, DND, OPAPP, OPA, NBI, PNP, AFP, and the PHRC, to address

extra-legal killings and other grave human rights violations. The DOJ chairs the IAC. 202 Including the collection and preservation of evidence, documentation, and identification of suspects

Table 25: Select Economic Indicators in ARMM

2010 2011 2012 2013 2014

Investments registered (in P billion)

0.482 0.421 1.075 1.95 4.407

Taxes collected (in P billion) 0.77 0.74 0.85 1.25 1.45

Jobs generated 4,139 4,092 4,288 4,913 7,402

Source: ARMM-ORG


The enactment of landmark legislation also paved the way for addressing human rights violations. The 2012 Anti-Enforced or Involuntary Disappearance Act (RA 10353), the first of its kind in Asia, institutes preventive measures for enforced disappearances, and provides a mechanism for reparation and redress. The 2013 Human Rights Victims Reparation and Recognition Act (RA 10368) recognizes the heroism and sacrifices of victims of human rights violations committed during the Marcos regime and acknowledges the State’s obligation to provide reparation to them and/or their families.

Complementary to these, the government undertook critical efforts to improve institutional responses to human trafficking through the Inter-Agency Council Against Trafficking headed by the DOJ. The 2012 Expanded Anti-Trafficking in Persons (TIP) Act (RA 10364) further strengthened the government’s hand as it expanded the definition of TIP, criminalized cases of attempted TIP, and removed the confidentiality protection previously extended to the accused, among others. From 2005 to March 2015, a total of 187 human trafficking convictions involving 209 perpetrators were handed down; 158 or 84 percent of these convictions involving 179 perpetrators were secured under this Administration. Twelve (12) of these 179 perpetrators were successfully prosecuted by the State for the crime of attempted TIP—a clear indication that the expanded anti-TIP law has indeed given more teeth to the Philippines’ campaign against human trafficking. Within a year from the start of the Administration, the US raised the country’s scorecard on TIP to Tier 2 status203 in the 2011 TIP Report from the Tier 2 Watch List204 in 2009 and 2010, indicating that more traffickers were prosecuted and more convictions were secured. The Walk Free Foundation, an Australia-based global human rights organization, also ranked the Philippines as number one in Asia, number three in the Asia-Pacific, and number 29 globally, out of 167 countries, in terms of government efforts and programs to combat TIP in its 2014 Global Slavery Index.205 The first edition of the report released in 2013 also cited the country’s innovative approach to combat TIP and other forms of exploitation.

203 The US State Department classifies countries according to Tiers. Placed under Tier 2 are countries whose

governments do not fully comply with the Trafficking Victims Protection Act’s (TVPA) minimum standards, but are making significant efforts to bring themselves into compliance with those standards.

204 Countries placed under Tier 2 Watch List are those whose government do not fully comply with the TVPA

minimum standards, but are making significant efforts to bring themselves into compliance with those standards. However: a) The absolute number of victims of severe forms of trafficking is very significant or is significantly increasing; b) There is a failure to provide evidence of increasing efforts to combat severe forms of trafficking in persons from the previous year; or c) The determination that a country is making significant efforts to bring itself into compliance with minimum standards was based on commitments by the country to take additional future steps over the next year.

205 The Global Slavery Index provides an analysis of the prevalence of modern slavery in terms of percentage of national population and the number of people living in modern slavery. It also includes an analysis of what governments are doing to eradicate modern slavery and looks at the contextual factors that make people vulnerable to modern slavery.


Ensuring the Welfare of Filipinos Abroad The government continues to promote and protect the welfare of Filipinos abroad. It concluded 40 labor and other related agreements, which regulated their deployment and employment, provided them access to education and training resources on their rights and well-being, and upheld their social security rights and benefits, among others. In July 2010, the government amended the 1995 Migrant Workers and Overseas Filipinos Act (RA 8042) through RA 10022206 to facilitate the deployment of Filipino workers only to countries with protective laws for migrant workers, that are signatories to international conventions on the protection of migrant workers, or with bilateral labor agreements with the Philippines. On the basis of certifications issued by the Philippine Foreign Service Posts, the POEA Governing Board declared 194 out of 206 receiving countries as having sufficient laws or multilateral instruments that guarantee the protection of migrant workers’ rights, including the Kingdom of Saudi Arabia, Jordan, and Lebanon, with which the Philippines entered into bilateral agreements for the protection of overseas Filipino domestic workers. In 2012, the Philippines became the second country to ratify the ILO Convention No. 189 on Decent Work for Domestic Workers—the first international instrument recognizing domestic workers as having human and employment rights entitled to protection under the law. As of December 2014, the number of OFs207 has decreased by more than 441,000 compared to the number of OFs in 2011.

Figure 19: Decreasing Number of OFs (2010–2014)

Source: DFA

206 An Act Amending RA 8042. Salient protective measures of this law include: a) emphasis on stronger bilateral and

multilateral relations with receiving countries; b) clarification of the process of certification of host countries and processing of workers’ documents; c) institutionalization of the role of LGUs and increase in the capability of POEA lawyers, among others, in anti-illegal recruitment programs; and d) additional required personnel for Overseas Filipino Resource Centers.

207 DFA takes into account all categories of Filipinos overseas including permanent residents (not foreign citizens), family members, and workers.

9,156,259

9,512,150

8,770,395

9,092,679 9,070,429

8,200,000

8,400,000

8,600,000

8,800,000

9,000,000

9,200,000

9,400,000

9,600,000

2010 2011 2012 2013 2014


According to DFA, the reasons for the decline in the numbers include: a) stringent immigration policies imposed by the host governments, b) political situations affecting the safety of OFs, and c) repatriation efforts of the government in crisis-stricken countries. Despite the increased number of OFs who returned during the Aquino Administration, unemployment rate in the country continues to decline. This means that the economy was able to absorb these returning OFs as they were able to find employment in the country.

Table 26: Unemployment Rates (2010–2014)

Year Unemployment Rate

2010 7.4

2011 7.0

2012 7.0

2013 7.1

2014 6.8a a The annual estimate for 2014 is preliminary and excludes Region VIII.

Source: NEDA

From 2010 to June 2015, political upheavals in some countries in the Middle East led to the mass repatriation of OFs.208 From July 2010 to June 2015, 22,161 OFs were repatriated to ensure their safety.

Table 27: Other Assistance to OFs

Program Description Number of Assisted OFs

Assistance to Nationals Fund

Provision of funds for the repatriation of OFs in distressa

58,165 (September 2010 to June 2015)

Anti-Trafficking in Persons

Assistance to victims through endorsement of their cases to law enforcement agencies of the Philippines and the OFs’ receiving countries

4,104 (July 2010 to June 2015)

Assistance to OFs with Death Penalty Cases

Provision of legal assistance and welfare assistanceb

70

(September 2010 to June 2015)

Assistance to OFs with Drug Smuggling Cases

1,513

(September 2010 to June 2015) a Excluding the mandatory repatriation of OFs from high-risk countries b Welfare assistance extended includes: a) jail visitation; b) provision of personal needs (such as winter clothing

and phone cards); and c) provision of airfare and visa facilitation for immediate family members.

Source: DFA

Aside from these, the government also provides returning OFWs, especially those who are repatriated, with various forms of assistance to facilitate their reintegration into the country and help provide a sense of well-being and security. Under the DOLE’s Assist WELL (Welfare, Employment, Livelihood, and Legal) Program, 6,563

208 The government had raised Alert Level 4 (Mandatory Repatriation) for the following countries: Egypt (2011 and

2013), Iraq (2014), Libya (2011 and 2014), Syria (2011), and Yemen (2011 and February 2015). Mandatory repatriation of OFs in Iraq, Libya, Syria, and Yemen is still ongoing. The other three alert levels that the government adopts are the following: Alert Level 1 (Precautionary Phase), which advises the OFs to take necessary precautions; Alert Level 2 (Restriction Phase), which advises the OFs to restrict non-essential movements, avoid public places, and take extra precaution; and Alert Level 3 (Voluntary Repatriation), which entails the voluntary repatriation of OFs.


returning OFWs who sought assistance209 were provided with assistance such as temporary shelter, transportation services, legal assistance, job placement or access to livelihood capital from the start of implementation in July 2014 to 03 July 2015. The government also took decisive measures to address the concerns of the European Maritime Safety Agency (EMSA) on the Philippines’ compliance with the 1978 Standards of Training, Certification, and Watchkeeping (STCW) Convention for Seafarers. In particular, EMSA expressed concerns on the compliance of Maritime Higher Education Institutions (MHEIs) with the National Quality Standards System (NQSS) and the implementation of Management-Level Courses (MLCs). These concerns have been identified in EMSA’s audits since 2006, but the previous administration did not exert serious efforts to address them. If the country fails to address EMSA’s concerns, the EU may revoke its recognition of Philippine-issued STCW certificates for officers. This may lead to the loss of employment of approximately 15,000 Filipino seafarer officers on EU-flagged vessels; and the loss of confidence in the country’s STCW system, possibly triggering audits by other major ship-owning states and putting at risk not only the 80,000 Filipino seafarers in EU-flagged vessels (both officers and non-officers) but all the 401,826 Filipino seafarers deployed worldwide in 2014. Recognizing the importance of preventing the withdrawal of EU recognition, this Administration designated MARINA as the single maritime administration responsible for the implementation and enforcement of the STCW Convention through the issuance of EO No. 75, series of 2012 while working with Congress, which passed RA 10635210 in March 2014. The law consolidated STCW functions under MARINA, improving policy coordination, formulation, and enforcement, as close to a dozen agencies were handling STCW functions prior to the passage of the law. The situation in the past made it difficult to effectively monitor compliance of MHEIs with the NQSS and ensure the quality of MLC implementation, leading to EMSA’s concern. In addition, MHEIs and maritime training institutions were closely monitored. A list of institutions compliant with the NQSS was published and a cadre of full-time inspectors was appointed to monitor and audit the quality of schools. MARINA’s STCW office also earned ISO certification from Bureau Veritas211 in July 2015, merchant marine officers were appointed as full-time MARINA employees, and the 12-month on-board training of officers required by the STCW convention is strictly monitored and tracked.

EMSA will deploy another Audit Team anytime from October 2015 to February 2016 to verify the country’s compliance.

209 Of which 6,200 were from Libya and 363 were from Yemen 210 An Act Establishing MARINA as the Single Maritime Administration Responsible for the Implementation and

Enforcement of the 1978 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers

211 A global company in testing, inspection and certification services


5. Reformed the Justice Sector

To ensure coherent and effective sectoral approach to the administration of justice, the government institutionalized212 the Justice Sector Coordinating Council (JSCC) composed of the Supreme Court, the DOJ, and the DILG. In November 2014, the JSCC launched the “Justice Zone” to address delays and inefficiencies in the justice system through closer coordination among law enforcement officers, prosecutors, judges, and public defenders, from case build-up to post-judgment. A key reform project in the Justice Zone is the eSubpoena, which is a web-based information system that facilitates the issuance and expedites the transmittal of subpoenas from the courts to concerned police officers. Complementary to these efforts, the Judiciary also implements the following:

“Hustisyeah,” a case decongestion program launched in 2013, aims to reduce overall case dockets nationwide by 20 percent up to 2016, by concentrating on 175 heavily congested courts throughout the country. In 2014, the Program registered a 30 percent reduction of caseload for Quezon City, where it was piloted.

The eCourts, an automated case management system launched in 2013, involve the electronic capture, storage, management, and retrieval of essential case data to enhance efficiency and productivity through digitization—reducing paperwork, shortening the processing time, enabling electronic assessment of court fees, and allowing electronic raffling of cases to judges.

As of May 2015, there are already 73 operational eCourts covering all the courts in Quezon City, Angeles City, and Lapu-Lapu City. By 2016–2017, it is envisioned that eCourts will be in 287 trial courts handling about 30 percent of the total caseload of the Philippine court system. A high-impact component of the eCourts, the Automated Hearing System captures every activity213 electronically during trial and allows for the immediate release of the orders and subpoenas to the parties present in court, saving at least one month in waiting time if the service is done via snail mail. As of July 2015, the system is being implemented in 58 Quezon City trial courts and all 15 Angeles City and Lapu-Lapu City courts.

Assisting courts program aims to address the disproportionate allocation of courts in various parts of the country by having less congested courts help overburdened courts from nearby jurisdictions.

212 While the JSCC was established in April 2010 under a Joint Declaration by the Supreme Court, DOJ, and DILG,

it was only in February 2011 that the Council first convened. Recognizing the importance of strengthening the rule of law in carrying out the government’s responsibilities and obligations, the Administration included the institutionalization of the JSCC in the Philippine Development Plan 2011–2016.

213 This includes orders issued by the judge, minutes of the hearing conducted, judges’ notes on testimony taken, markings of evidence, issuance of writs and other court processes.


INTEGRITY OF THE ENVIRONMENT AND CLIMATE CHANGE ADAPTATION AND MITIGATION

Alongside its efforts to achieve sustained economic growth and to improve the quality of life of all Filipinos, the Administration also recognized the urgency of preserving the gains of national development for future generations. In line with this, initiatives toward environment protection and climate change adaptation and mitigation were undertaken. 1. Ensured the Conservation and Protection of Natural Resources

The government showed strong commitment to ensure that present and future generations benefit from the country’s natural resources and live in a healthy environment. Protected Forest Resources

In 2011, the government implemented a massive anti-illegal logging campaign to allow the natural regeneration of forests and protect threatened habitats and sanctuaries of endangered and rare species. The campaign reduced the number of cities/municipalities considered as illegal logging hotspots214 by 88 percent, from 197 at the start of the campaign to 23 as of 20 July 2015. It also led to the confiscation of 30.71 million board-feet of illegally cut and processed logs and forest products nationwide. From these, 146,471 school arm chairs and furniture were donated to DepEd, and 388 school buildings were repaired. The government launched the National Greening Program (NGP), which aims to plant 1.5 billion trees215 in 1.5 million ha216 from 2011 to 2016. After more than four years of reforestation, some 637.80 million seedlings were planted in 1.1 million ha, increasing forest cover from 6.8 million ha to 7.86 million ha. The NGP generated 2.4 million jobs, benefiting 342,045 individuals as of 20 July 2015.

214 Refer to areas in the country where illegal logging is rampant 215 The NGP targets to plant more than 350 million seedlings in 350,000 ha in 2015 and the remaining 560 million

seedlings in 330,648 ha for 2016. This will be accomplished in partnership with the Community-Based Forest Management Peoples Organizations through the use of mechanized seeders to be strategically located in various provinces such as Camarines Sur, Surigao del Sur, and Negros Oriental.

216 Since 2011, NGP has exceeded its targeted land area due to the inclusion of timber, mangrove, and beach forest varieties, which require larger planting areas (in addition to high value crops like coffee, cacao, and rubber). NGP has covered 128,558 ha of the 100,000 ha target in 2011; 221,763 ha of the 200,000 ha target in 2012; 333,160 ha of the 300,000 ha target in 2013; and 334,302 ha of the 300,000 ha target in 2014.


Figure 20: Area Reforested (in ha) (1986–2015)

Source: DENR

To support the preservation and protection of forest lands in national and local land use planning and management, the DENR completed the Forestland Boundary Delineation of 81 provinces, covering 88,666 km. This provides proper zoning to determine areas for protection and promote socio-economic development (e.g., farming, wood plantation) outside the forest limits.

Enforced Responsible Mining The Mining Industry Coordinating Council (MICC) was established through EO No. 79, s. 2012217 to promote responsible mining, institute a more equitable revenue sharing scheme to better support national and local growth, and make the industry more transparent and accountable.

In 2014, the MICC completed the Go and No-Go Zone maps to delineate mining areas from those where mining is prohibited, such as prime agricultural lands, tourism development areas, Strategic Agricultural and Fisheries Development Zones, and those under the 1992 NIPAS Act (RA 7586).218 Accessible to the public through the website of the DENR-Mines and Geosciences Bureau, these maps serve as guide in all planning and decision-making processes of concerned government agencies.

Through the MICC’s efforts, the Philippines was admitted as a candidate country by the Extractive Industries Transparency Initiative (EITI)219 International Board on 22 May 2013 at its Global Conference in Sydney, Australia. In December 2014, the PH-EITI submitted its first country report, disclosing payments from 30 mining companies and six oil and gas companies for 2012, covering total revenues of P52.7 billion. The

217 Institutionalizing and Implementing Reforms in the Philippine Mining Sector Providing Policies and Guidelines to

Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources 218 An Act Providing for the Establishment and Management of National Integrated Protected Areas System, Defining

Its Scope and Coverage, and for Other Purposes 219 The EITI is a global standard that promotes an open and accountable management of natural resources. It aims

to provide a level playing field that requires companies to disclose all information and makes them benefit from an improved and more stable investment climate.

553,098

286,921

143,611211,005

1,098,163

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

C. Aquino Ramos Estrada Arroyo B. Aquino


PH-EITI’s first cycle of implementation was cited as best global practice by the EITI international secretariat due to the level of engagement of all the sectors.

2. Improved Adaptive Capacities of Communities To address the country’s vulnerabilities to the effects of climate change, the government took a proactive and holistic approach to disaster risk reduction and management (DRRM) and climate change adaptation and mitigation (CCAM), in order to build a culture of safety and awareness.

Mainstreamed DRRM and CCAM in Governance

The government put in place the policy framework and implementing mechanisms for DRRM and CCAM. The National DRRM Plan was formulated to provide a comprehensive, all-hazards, multi-sectoral, inter-agency, and community-based approach to DRRM. Likewise, the National Climate Change Action Plan was formulated to build the adaptive capacity and increase the resilience of natural ecosystems. In line with these, LGUs were mandated to ensure that DRRM and CCAM initiatives are integrated into their development plans, programs, and budgets.220 For FY 2015, a total of P128.8 billion was allocated to address climate change, about 98 percent of which was for adaptation projects such as flood control and management.

Enhanced Disaster Risk Identification and Assessment

Recognizing the vulnerabilities of the country to climate change, the government focused on improving its weather forecasting capability. It more than quadrupled PAGASA’s budget from P766 million in 2010 to P3.44 billion in 2015, the bulk of which was used to modernize and upgrade its equipment. This resulted in notable improvement in its performance, particularly for the past six tropical cyclones221 from January to July 2015. It recorded an average forecast track error of 97.4 km—better than the 120-km error threshold of the World Meteorological Organization. PAGASA is also able to generate accurate data (i.e., wind speed and rainfall amount) of an approaching tropical cyclone through the 12 operating Doppler radars,222 the

220 As of 31 March 2015, a total of 1,373 LGUs (74 provinces, 138 cities, and 1,161 municipalities) of the total 1,592

LGUs (excluding ARMM) have organized their DRRM Councils. On the other hand, 1,248 LGUs (68 provinces, 135 cities, and 1,045 municipalities) have formulated their DRRM plans.

221 These are tropical cyclones Amang (Mekkhala), Betty (Bavi), Chedeng (Maysak), Dodong (Noul), Egay (Linfa), and Falcon (Chan-hom).

222 Including the Doppler radar in Jaro, Iloilo, the operation of which was postponed due to delayed release of funds. The following radars will be installed and/or made operational: a) radar in Guiuan, Eastern Samar totally damaged by typhoon Yolanda (Haiyan) will be operational in December 2015; b) three radars (one radar each in Busuanga, Palawan; Zamboanga City, Zamboanga; and Daet, Camarines Norte) will be operational by end-2016; and c) four radars in areas that are currently being reviewed.


use of satellite images, and an X-Band Mobile Weather Radar,223 which covers areas outside the range of operational radars. The P6.10 billion Nationwide Operational Assessment of Hazards Project (Project NOAH)224 launched in 2012 provided for a more accurate, integrated, and responsive disaster prevention and mitigation system, especially in high-risk areas throughout the Philippines. Under the Project, various hydrometeorological devices have been installed nationwide, including 853 Automated Rain Gauges (ARGs), 479 Water Level Monitoring Stations (WLMS), and 86 Automated Weather Stations (AWS) as of June 2015. These devices measure rainfall, temperature, humidity, pressure, and wind direction and speed. Through this Project, a six-hour lead time warning against impending floods is now possible. This enabled Marikina City to record zero casualty during typhoon Maring in 2012 and the series of monsoon rains or Habagat in 2013—a far cry from the 181 casualties225 recorded during typhoon Ondoy in 2009. Maps containing more detailed information on hazards and risks were generated. These include the Enhanced Landslide Hazard Maps for all 81 provinces, Metro Manila, and Zamboanga City;226 the Multi-Hazard Maps of the 28227 most disaster-prone provinces;228 the 1:10,000 Scale Geohazard Maps for all 1,634 cities and municipalities;229 and the Light Detection and Ranging (LiDAR) Maps of the floodplains of the 18 major river systems and four critical areas.230 In addition, Storm Surge Maps have been generated for all 66 vulnerable provinces231 and Metro Manila as of February 2015, while the Multi-Hazard Maps of the Greater Metro Manila Area (GMMA)232 will be completed by December 2015.

223 Intended for Luzon but currently stationed in Guiuan, Eastern Samar. This will be redeployed when the Doppler

radar in Guiuan is already functional. Two more X-Band radars for Visayas and Mindanao are expected to be delivered within the second quarter of 2016.

224 Project NOAH also provides information on landslides and storm surges, among others. The Project’s international commendations include: “Most Advanced E-Governance Disaster Risk Reduction Tool” by the UN during the E-Governance and Disaster Risk Reduction Summit held in South Korea in March 2015; and the 2014 Geospatial World Excellence in Policy Implementation Award by the Geospatial World Forum in Switzerland in May 2014.

225 With 73 dead and 108 injured 226 A separate map was produced for Zamboanga City based on its historical data of susceptibility to landslides. 227 Abra, Agusan del Sur, Antique, Aurora, Benguet, Bohol, Cagayan, Catanduanes, Cavite, Dinagat Islands, Eastern

Samar, Ilocos Norte, Ilocos Sur, Iloilo, Isabela, Laguna, Leyte, Northern Samar, Nueva Vizcaya, Pampanga, Quirino, Rizal, Southern Leyte, Surigao del Norte, Surigao del Sur, Zambales, Zamboanga del Sur, and Zamboanga Sibugay

228 Completed in 2012 229 The geographic features and attributes in the 1:10,000 maps not reflected in the previously completed 1:50,000

geohazard maps (2006–2010) include identification of landslide debris, accumulation zones, soil erosion, flood depth, and flow direction. These maps provide information on the various susceptibilities of communities to flooding and landslides up to the barangay and sitio or purok level.

230 Under Project NOAH’s Disaster Risk Exposure and Assessment for Mitigation-Light Detection and Ranging (DREAM-LiDAR) Program, the 18 major river systems were prioritized as flooding in these river systems from 1981 to 2006 accounted for a total of P5.6 billion in damage, which translated to about 70 percent of the total damages from flooding and affected 6.2 million Filipinos. The four critical sites (i.e., Infanta, Lucena, Bohol, and Boracay) were requested by their respective LGUs due to their history and propensity for flooding in recent years.

231 Shariff Kabunsuan, which was reverted to Maguindanao in 2008, is the remaining area that has yet to be storm surge-mapped due to security reasons.

232 To include the provinces of Laguna, Cavite, Bulacan, and Rizal. Multi-hazard maps of the provinces of Laguna, Cavite, and Rizal generated in 2012 were enhanced by integrating major flooding events (e.g., tropical storm Cosme [Halong] and typhoon Feria [Nangka] in 2008 and 2009, respectively), which happened in these areas.


Investing in Flood Management To mitigate flooding in highly urbanized and flood-prone cities and areas, the government shall implement structural mitigation measures worth P351.72 billion under its Flood Management Master Plan (2012–2035) for the entire Metro Manila and its surrounding areas, particularly Rizal, Laguna, and parts of Bulacan. In keeping with the Plan, P31.07 billion was allocated from 2011 to 2015 for various flood control projects, which include:

The completed Pasig-Marikina River Channel Improvement Project Phase II, which relieves 170,000 population from flood and lessens damages on infrastructures and facilities by 37 percent;

The ongoing Pasig-Marikina River Channel Improvement Project Phase III, which, when fully completed by June 2017, is estimated to reduce: flood areas by 18 percent or equivalent to 750 ha (i.e., from 4,200 ha to 3,450 ha of flooded areas); annual flood damages by P14.3 billion (i.e., from P80.6 billion to P66.3 billion), and affected population by 200,000 (i.e., from 1.2 million to 1 million);

The ongoing Blumentritt Interceptor Catchment Area, to be completed in March 2016; and

P5-billion high-impact projects, for completion in November 2015, which include the Valenzuela-Obando-Meycauayan (VOM) Project in NCR, the San Fernando-Sto. Tomas-Minalin Tail Dike Project in Region III, and the Sta. Maria-Mabitac River Project in Region IV-A.

Other major flood management projects include the Pinatubo Hazard Urgent Mitigation Project Phase III, which is expected to lower flood levels and shorten flood duration in the city of San Fernando and municipalities of Guagua, Sasmuan, Bacolor, and Lubao in Pampanga. The Project is targeted to be completed in October 2015. The Flood Risk Management Project for Cagayan River, Tagoloan River in Misamis Oriental, and Imus River (FRIMP-CTI) in Cavite will also be implemented from March 2016 to February 2019. The Cagayan River sub-project will address bank erosion that leads to loss of economically high-value lands in Tuguegarao City and parts of Cagayan Province. Under the Tagoloan River sub-project, the completion of the dike system in the lower Tagoloan River Basin will reduce flooding. The Imus River sub-project will reduce the flood flow in the area through the construction of two off-site retarding basins. Improved Disaster Preparedness and Response

The improved risk identification and assessment tools enabled the government to establish proactive and pioneering measures to anticipate, prepare, and cope with disasters. In particular, the Pre-Disaster Risk Assessment (PDRA), institutionalized in 2014, strengthened coordination channels between and among agencies and LGUs as they manage approaching disasters. Based on DOST’s forecasts, the


PDRA core group233 identifies hazard-specific, area-focused, and time-bound interventions. Among these are the prepositioning of resources and conduct of pre-emptive evacuations by the concerned government agencies and LGUs, in partnership with private organizations. Improved disaster preparedness and response resulted in “zero casualty” during typhoon Chedeng (Maysak)234 and the recent severe tropical storm Egay (Linfa).235 Further, the country earned commendations from international organizations (e.g., UN Development Programme and the UN Humanitarian Country Team) for its preparedness and disaster management measures during typhoon Ruby (Hagupit)236 wherein casualties and damage to private and public properties, and the economy were minimal compared to typhoon Yolanda (Haiyan), which is relatively similar in terms of track and strength. The PDRA concept was incorporated in the Sendai Framework for Disaster Risk Reduction (DRR) 2015–2030, which was adopted during the Third UN World Conference on DRR held in Sendai, Japan in March 2015. The Sendai Framework, successor to the Hyogo Framework for Action 2005–2015, aims to guide nations, communities, and other actors in managing risks and preventing the creation of new risks through investments in DRR initiatives, among others. As a component of PDRA, Oplan Listo was launched in 2014 to further strengthen the capacity and level of preparedness of LGUs. Under this initiative, Listo Teams237 were created in each municipality/city, and LGU Disaster Preparedness Manuals were developed (i.e., Checklist of Early Preparations for Mayors, Checklist of Critical Operations for Mayors, and Checklist for Municipal Local Government Operations Officers, Chiefs of Police and Fire Marshalls). Oplan Listo contributed to the improved government response to typhoon Chedeng. The government pursued efforts to heighten public awareness and cooperation in preparing for disasters. Through timely and intensified dissemination of hazard warnings and advisories, in particular, the government made available rainfall forecasts covering 165 major cities and municipalities238 at the NOAH website (www.noah.dost.gov.ph) and mobile application (Android and iOS) and ClimateX database (climateX.ph) since 22 July 2013 to help disseminate flood warnings. The new version of the NOAH website (NOAH 2.0) provides accessible real-time disaster-related information such as color coded rainfall warnings and flood scenario for

233 Composed of representatives of the NDRRMC Vice-Chairs namely the DOST Secretary as the Vice-Chair for

Disaster Prevention and Mitigation, the DILG Secretary for Disaster Preparedness, the DSWD Secretary for Disaster Response, and the NEDA Director General for Disaster Rehabilitation and Recovery

234 Which hit the country in April 2015 235 Which hit the country in July 2015 236 Which hit the country in December 2014 237 Composed of the Local Chief Executive, Local DRRM Officer, Chief of Police, Fire Marshall, and Municipal/City

Local Government Operation Officer 238 These are the 144 cities and 21 municipalities supplemented/covered by the existing radars and sensors and

have the ability to receive data transmitted by said devices.


specific locations239 as well as hazard maps for landslides, floods, and storm surges nationwide. To better prepare for events similar to typhoon Yolanda, PAGASA modified its tropical cyclone warning system starting May 2015 by adopting five typhoon signals, including a “Super Typhoon” (signal no. 5) category for very strong typhoons with 220 km/hr or stronger winds. The government also launched in May 2015 the Valley Fault System Atlas in preparation for a possible 7.2 magnitude earthquake in the GMMA, which could cause loss of lives and damage amounting to P2.3 trillion in Metro Manila. The Atlas, which includes 33 map sheets in various scales,240 identifies in detail the areas traversed by an active fault system in the GMMA. A digital copy of the Atlas is accessible on the websites of the PHIVOLCS and NDRRMC.

3. Pursued Building Disaster Resilient Communities

The rehabilitation and recovery efforts of the Administration are guided by the “Build Back Better” principle that focuses on long-term, sustainable efforts to restore normalcy in the lives of affected people, strengthen their adaptive capacities, and reduce their vulnerabilities to future hazards.

Typhoon Yolanda (Haiyan) In November 2013, typhoon Yolanda, considered as the strongest tropical cyclone to ever make landfall in recorded history, severely affected about 1.47 million families in 171 municipalities and cities in 14 provinces241 of six regions242 resulting in damages amounting to P89.6 billion. Through well-coordinated government-led efforts, the country successfully transitioned from relief to rehabilitation phase in eight months—a feat internationally recognized as faster than most countries that experienced similar disasters. Three days after Yolanda’s landfall, all affected airports and sea ports resumed operations.243 Within a week, power was fully restored in Romblon, Negros Oriental, Oriental Mindoro, and Siquijor. In less than two weeks, more than 100 stores reopened in Leyte, Southern Leyte, Samar, Eastern Samar, and Northern Samar. Within the same period, banking services also started to resume in Tacloban City.

239 Red rainfall advisory means evacuation is necessary as serious flooding is expected in low-lying areas; Orange

rainfall advisory means that evacuation is possible as flooding may occur; and Yellow rainfall advisory means monitoring of weather is necessary as flooding is possible.

240 Metro Manila: 1:5,000 scale with 22 map sheets; Laguna and Cavite: 1:10,000 with 10 map sheets; and Bulacan and Rizal: 1:50,000 with 1 map sheet

241 Palawan, Masbate, Aklan, Antique, Capiz, Iloilo, Negros Occidental, Cebu, Biliran, Eastern Samar, Leyte, Western Samar, Southern Leyte, and Dinagat Islands

242 Regions IV-B, V, VI, VII, VIII and CARAGA 243 Excluding Estancia Port


Yolanda-affected areas have shown significant progress towards rehabilitation and recovery through the holistic, focused, and sustainable interventions implemented under the four thematic areas of the Yolanda Comprehensive Rehabilitation and Recovery Plan (CRRP). As of 30 June 2015, the government has released P88.96 billion to fund various programs, projects and activities for social services, resettlement and housing, livelihood, and infrastructure. A total of 5,080 classrooms in various provinces244 or 31.8 percent of the targeted 15,984245 were repaired or rebuilt in accordance with the government’s disaster-resilient building designs. More than three million learning materials/textbooks or 58.4 percent of the targeted 6.47 million246 have also been distributed benefiting almost 2 million students. Likewise, a total of 269 health facilities247 or 44.8 percent of the targeted 600 facilities248 were repaired to ensure that preventive and life-saving interventions are available, particularly in hard-to-reach and underserved communities. Mindful of the immense hazards of disasters to life and property, the government continues to ensure the long-term safety of affected families through housing and resettlement assistance. More than 1 million families in safe zones will have their houses repaired through the Emergency Shelter Assistance (ESA)249 within 2015.250 Further, 205,128 permanent houses that adhere to structural standards and are located in safe zones will be constructed. As of June 2015, 6,165 houses in ten provinces251 have been completed while another 67,277 will be completed within 2015.252 The government also provided affected individuals with employment opportunities. DOLE’s Emergency Employment Program provided 35,558 beneficiaries with wages ranging from P2,600 to P8,460 for 10 to 30 days.253 Opportunities for sustainable sources of income were also provided to a total of 74,203 individuals through training and support interventions for small businesses.254 These beneficiaries are now employed or self-employed, some of whom are earning average daily income

244 Completed classrooms are located in the provinces of Occidental Mindoro, Palawan, Romblon, Aklan, Antique,

Capiz, Iloilo, Negros Occidental, Cebu, Biliran, Eastern Samar, Samar, Leyte and Dinagat Islands. 245 All the remaining classrooms (6,561 being rebuilt/repaired, 10 under procurement, and 4,333 not yet started) will

be completed by end-2015. 246 A total of 2.69 million learning materials/textbooks are being distributed and to be completed within 2015. 247 Composed of 199 BHSs, 53 RHUs, 14 LGU hospitals, and 3 DOH facilities located in Eastern Samar, Western

Samar, Leyte, Southern Leyte, Iloilo, Capiz, Aklan, and Palawan. 248 Another 122 health facilities (89 BHSs, 23 RHUs, 5 LGU hospitals, and 5 DOH facilities) are being repaired and

209 facilities (166 BHSs, 19 RHUs, 23 LGU Hospitals, and 1 DOH facility) are for procurement. These will be completed by end-2016.

249 Provision of either materials or financial assistance 250 As of 15 June 2015, a total of 303,715 families have received ESA, with the assistance for the remaining 762,114

to be provided by end-2015. 251 Antique, Aklan, Capiz, Iloilo, Negros Oriental, Cebu, Leyte, Samar, Biliran and Eastern Samar 252 The remaining 115,596 houses and 16,090 houses are programmed for 2016 and 2017, respectively. 253 Wage depends on the prevailing minimum wage in the area. 254 Another 66,775 will be covered by the second quarter of 2016, of which 49,014 will be within 2015. These are

under DOLE’s Integrated Livelihood Program, TESDA’s trainings on livelihood and construction, and DTI’s Livelihood Seeding Program.


reaching P1,134.255 Further, more than 700,000 farmers and fisherfolk benefited from various government farming and fishing interventions such as boat replacement/repair, and provision of marine engines, and distribution of palay seeds, corn seeds, fertilizers, and farm tools. Local economic activities also picked up with the restoration of key and major connectivity infrastructures such as the 52.74 km of the targeted 107.24 km national roads,256 730.09 lm of the targeted 1,852.53 lm of national bridges,257 22 of the targeted 56 seaport facilities,258 and 36 of the targeted 40 airport facilities.259 Bohol Earthquake Bohol suffered the most on account of the 7.2 magnitude earthquake that shook some areas in Western and Central Visayas Regions in October 2013. Deaths in the province was more than 200 while damages amounted to almost P1.4 billion. Through holistic interventions implemented by the government and other stakeholders, the province is on the way to long-term recovery and rehabilitation. A total of 64,725 families (100 percent of target) repaired their houses through the provision of housing materials or financial assistance under the P388 million Home Materials Assistance (HOMA) (38,801 families) and P259.24 million ESA (25,924 families) programs, respectively. As of 25 June 2015, out of 8,083 families, a total of 1,637 are now living in permanent houses.260 The houses261 for the remaining 6,446 families will be completed and turned over within 2015.262 As part of immediate relief and rehabilitation, the government implemented the Cash-for-Work (CFW) Program, wherein 42,610 individuals263 earned an average of P269 per day for a 10-day work in the construction and repair of houses and community facilities, among others. In addition, temporary employment was provided to 9,520

255 These are the beneficiaries engaged in ornamental plants/cut-flowers who were covered by DTI’s Livelihood

Seeding Program. 256 Another 21.94 km will be repaired/reconstructed within 2015, 31.91 km by first quarter of 2016, and 0.65 km are

for funding. 257 Another 482.64 lm will be repaired/reconstructed within 2015 and the remaining 639.8 lm by the second quarter

of 2016. 258 One facility to be completed by August 2015, 21 are under procurement to be completed by June 2016, and the

remaining 12 are for funding. 259 Two facilities to be fully restored by January 2016 and the remaining two are for funding. 260 Located in Antequera, Balilihan, Buenavista, Calape, Carmen, Catigbian, Clarin, Corella, Cortes, Danao, Loon,

Maribojoc, Sagbayan, San Isidro, Sevilla, and Tubigon. 261 Including houses in Inabanga 262 The delay in the completion of the houses is due to, among others, tropical storm Seniang (Jangmi) in December

2014, which affected the transport of construction materials and actual construction. The provision of permanent houses is undertaken in partnership with Habitat for Humanity Philippines Foundation, Inc.

263 Based on actual local needs.


families, enabling them to earn 75 percent of the prevailing regional wage rate from community-based projects under the Cash for Building Livelihood Assets (CBLA).264 Opportunities for sustainable and long-term employment were also created through initiatives such as the Skills Training and Emergency Employment towards Recovery in Bohol Program,265 which produced 795 graduates who constructed 32 houses with their enhanced skills in carpentry, masonry, plumbing, and electrical installation and maintenance. At present, the beneficiaries’ daily earnings range from P250 to P400 through special projects of DSWD, Habitat for Humanities, and other private individuals. Further, SSFs, such as the Bohol Fabrication Laboratory (FabLab)266 and the Tubigon Raffia Loom Weaving Facility both launched in May 2014, spurred local entrepreneurship, enabled innovation and collaboration, and improved the competitiveness of Bohol’s creative sector. Bohol FabLab, the country’s first fabrication laboratory SSF, provided capability building activities, training, and product development, benefiting almost 300 individuals and more than 900 SMEs. The beneficiaries of these two SSFs are earning P250 to P375 per day. Economic activities were restored through the repair/reconstruction of damaged critical connectivity infrastructures. The repair of the Tagbilaran Airport was completed in 2014. In addition, 11 sea ports in Bohol (e.g., Tagbilaran, Tubigon, Catagbacan, and Talibon) are in various stages of repair, all to be completed by the third quarter of 2016.

Likewise, to preserve national heritage, the government completed in 2014 the inventory and recovery of salvaged materials of the 16267 damaged heritage sites or structures in Bohol.268 A restoration master plan and site-specific plans are currently being formulated to be completed by October 2015. These will guide the actual reconstruction/restoration that will commence in December 2015.

Typhoon Pablo (Bopha) Typhoon Pablo was the strongest tropical cyclone that made landfall in the country in 2012. It resulted in more than 1,000 deaths and more than P43 billion in damages, with the provinces of Compostela Valley and Davao Oriental bearing its brunt.

264 Such as coconut seedling and seaweed planting, and agri-infrastructure rehabilitation 265 A convergent effort among TESDA, DOLE, DSWD, UNDP and LGUs 266 A platform for grassroots communities to translate their design ideas into physical forms with the help of

computers. It allows local manufacturers to make prototypes and products such as equipment, machinery, and electronic gadgets; create scale models; illustrate graphic designs; and mass-produce products, among others

267 Baclayon Church Complex, Loboc Church Complex, Dauis Church Complex and Watchtower, Maribojoc Church Complex, Loon Church Complex, Loay Church Complex, Dimiao Church Complex, Cortes Church Complex, Panglao Watchtower, Panglao Church Complex, Alburquerque Church Complex, Bohol Provincial Capitol, Balilihan Watchtower, Punta Cruz Watchtower, Pamilacan Island Watchtower, and Loay Watchtower

268 Heritage sites or structures are also being reconstructed/restored in Cebu (Sto. Niño de Cebu Basilica Complex, Cebu Metropolitan Cathedral Complex, Magellan’s Cross Pavilion, Dalaguete Church Complex, Carcar Church Complex, Sibonga Church Complex, Museo Sugbu Complex, and Fort San Pedro) and Eastern Samar (Guiuan Church Complex, which was damaged by typhoon Yolanda).


After almost three years, both provinces have regained their physical and economic foothold and even strengthened resilience against future disasters. The rehabilitation and recovery efforts for said provinces are guided by the Pablo Rehabilitation Plan and supported by the P13.16 billion released by the government as of 31 March 2015. A total of 47,179 families (100 percent of target) in safe zones have repaired their houses, through the P344.96 million worth of financial assistance or construction materials released under ESA. As of May 2015, out of the targeted 59,580 houses, a total of 23,638 permanent houses (39.7 percent of target)269 in safe zones are now occupied by family beneficiaries. The remaining houses will be completed by end-2015 and turned over by 2016. Further, students have been provided with a conducive learning environment with the construction or repair of 1,606 classrooms (93.2 percent of target). The remaining 117 classrooms are targeted to be completed by November 2015. Economic activities are also in high gear through livelihood interventions that provided sustainable sources of income to affected persons. The most notable economic intervention is the Hot “Pablo” Chili Project,270 which generated domestic sales from chili products amounting to more than P10 million. It also assisted 51 SMEs, trained 389 farmers, and generated 3,950 jobs. A total of 1,429 families have also been enabled to start or expand their businesses through capital seed funding271 amounting to almost P14 million. In addition, 41,552 families were provided with training272 on microenterprise management.

Typhoon Sendong (Washi) Typhoon Sendong, which hit the country in December 2011, resulted in more than 1,000 deaths and damages amounting to P5.4 billion, with the cities of Cagayan de Oro (CDO) and Iligan as the most severely affected areas. A total of 10,405 families had their damaged houses repaired. Likewise, a total of 6,205 families (68.3 percent of the targeted 9,079) now live in disaster resilient permanent houses located in the cities of CDO and Iligan, and Bukidnon while 2,874 families will be provided the same by end-2015.273 The government provided affected families with livelihood opportunities, through among others, the Sustainable Livelihood Program, which provided 4,152 families with capital assistance amounting to P22.61 million to enhance or develop their microenterprises. Likewise, through the SSF Program, the Differently-Abled

269 The construction was hampered by, among others, tropical depression Agaton (Lingling) in January 2014, which

destroyed bridges and delayed the delivery of construction materials, and harassment of NPA elements (i.e., burning of construction equipment).

270 A total of P976,272.40 was disbursed for the Project by DTI. 271 Under the DSWD’s Sustainable Livelihood Program 272 Conducted by public and private training institutions 273 The delay in the construction of the houses was due to the unavailability of relocation sites.


Women’s Network was granted assistance in the form of equipment like sewing machines. The group earns an average monthly sales of P7,000. Zamboanga City Crisis

The government also applied the Build Back Better principle in recovery efforts for man-made disasters. To support 23,794 families affected and displaced by armed conflict in Zamboanga City in 2013, the national government released P518.58 million to DSWD as an immediate response.

Together with the UP Planning and Development Research Foundation, the government crafted the Zamboanga City Roadmap to Recovery and Reconstruction (Z3R). The Z3R, with an estimated total budget of P3.74 billion, focuses on the redevelopment of the six crisis-affected barangays. As of July 2015, a total of P3.25 billion out of the P3.74 billion budget has been released to the NHA, DPWH, DSWD, Local Water Utilities Administration, NEA, and DepEd, while the remaining P491.15 million is under review and ground validation. The P3.25 billion was used for the following:

P1.98 billion for shelter assistance to 8,161 families under the following modes: home material assistance (HOMA) and permanent shelter assistance to those whose houses were directly affected. Of these, 1,661 families have been provided HOMA as of June 2015. The remaining 6,500 families shall have permanent shelter assistance, of which 1,550 permanent shelters have been completed and provided to affected families. Another 1,650 permanent shelters are being constructed, 2,093 shelters are under site development, while 1,207 units (additional units programmed as buffer)274 are under procurement. The DPWH and NHA target to complete the 3,743 units this 2015, while the additional 1,207 units will be completed by March 2016.

P878.16 million for land acquisition and development, particularly for road/drainage right-of-way (ROW) and the construction, rehabilitation, and widening of 8.37-km major and interior roads. Of these road projects, 1.34 km have been completed as of July 2015. Completion of the major road works is targeted in October 2015;275

P58.66 million were transferred to DSWD for cash assistance to affected families; and

P335.28 million for OCD Region IX for the construction of access roads (completed in August 2014), development of the Tulungatung resettlement site (completed in December 2014), and power connections (35 percent complete as of July 2015), among others.

274 In July 2014, additional units were programmed as buffer due to the difficulty in having the exact number of

families that needs assistance. 275 The delay of the Project is due to ROW issues.

ANNEX

SELECT INFRASTRUCTURE PROJECTS UNDER THE AQUINO ADMINISTRATION

A. COMPLETED AND ONGOING LONG-DELAYED PROJECTS

Project Name and Description Status/Timelines

1. Basilan Circumferential Road, Basilan (P1.75 billion)

Upgrading/improvement of the 49.87 km section and construction of four bridges (i.e., Gubawan, Bacung, Guiong, and Limbo Candis Bridges) of the 131.90-km circumferential road

Will reduce travel time around Basilan from 3 hours and 45 minutes to 2 hours and will benefit 450,000 residents

Started in 2000 but was delayed due to peace and order problems, among others1

Implementation period:2 January 2012–December 2015

97.60% complete as of 24 July 2015; for completion in December 2015

Ongoing works include the 1.16 km approaches and three bridges (i.e., Bacung, Guiong and Limbo Candis Bridges), which are 91% complete.

2. Aluling Bridge (P191.37 million)

180-lm bridge across the Abra River

Connects Cervantes, Ilocos Sur and Tadian, Mountain Province and reduces travel time from 1 hour to 30 minutes

Conceptualized in 1978; work accomplished was damaged in 1990 due to flooding

Reduced travel time from 1 hour to 30 minutes

Reconstruction started in 1999 and completed in March 2013 Phase I – 1999 to 2003 Phase II to V – 2005 to 2010 Phase VI – 2011 to 2013

3. Ternate-Nasugbu Road (P902.21 million)

6.05-km tourism road

Conceptualized in 1994

Connects Ternate, Cavite and Nasugbu, Batangas to Metro Manila

Reduced average travel time between Manila and Nasugbu, Batangas via Tagaytay City from 4 hours and 30 minutes to 3 hours

Construction started in January 2009 and completed in January 2014

4. Candelaria Bypass Road Project, Quezon (P557.50 million)

7.29-km concrete road with three bridges (176 lm) and a box culvert (60 lm) in Candelaria, Quezon

Conceptualized in 1998

Decongested traffic along the Maharlika Highway by 40% 11,645 of the 29,113 motorists daily diverted to the bypass road

Construction started in August 2008 and completed in June 2012

5. New Lullutan Bridge, Isabela (P772.92 million)

500.6-lm bridge across the Cagayan River, which replaced a spillway bridge that was destroyed by typhoon Rosing in 1995

Connects Brgy. Calamagui 1st (East of the Cagayan River) to Brgy. Lullutan (West of the Cagayan River, in the same side as Ilagan City), located along the Ilagan-Delfin Albano-Mallig Road in Ilagan City, Isabela.

Reduced travel time between Brgy. Calamagui 1st and Brgy. Lullutan from 1.5 to 2 hours, to 5 minutes

Construction started in June 20113 and completed in January 2015

Opened to traffic on 19 February 2015

Source: DPWH

1 Implementation delays were attributed mostly to the pull-out of AFP personnel securing the area for combat

operations. 2 Implementation period refers to the project’s construction/systems development period. 3 The Project was originally planned for implementation under Contract Package II-A of the Urgent Bridges

Construction Project for Rural Development funded by the Japan International Cooperation Agency. However, due to delays in procurement and the impending loan expiration, the construction of the New Lullutan Bridge was undertaken using the national government funds.

B. HIGH STANDARD HIGHWAY NETWORK


1. Laguna Lakeshore Expressway-Dike Project, Laguna (P122.8 billion)

47-km, four-lane expressway dike

Will connect Bicutan and Los Baños

Will reduce average travel time between Bicutan and Los Baños from 1 hour and 30 minutes to 35 minutes

Will create 700 hectares of land asset

An annual average of P8.1 billion flood damages and 800,000 people experiencing flooding will be prevented

Approved by the NEDA Board in October 2014

Implementation period: March 2016–March 2023

2. Cavite-Laguna Expressway (CALAX) (P35.43 billion)

44.63-km, four-lane paved toll road and 12,207-lm bridges

Will connect CAVITEX in Kawit, Cavite and SLEX-Mamplasan interchange in Biñan, Laguna

Will reduce average travel time between CAVITEX and SLEX from 1 hour and 30 minutes to 45 minutes

Approved by the NEDA Board in November 2013

Implementation period: July 2016–July 2020

3. North Luzon Expressway-South Luzon Expressway (NLEX-SLEX) Connector Road (P17.8 billion)

8-km, four-lane expressway from C3 Road in Caloocan City to PUP, Sta. Mesa, Manila and will connect to the common alignment of Skyway Stage 3

Will reduce travel time between SLEX and NLEX from 1 hour and 30 minutes to 2 hours, to 15-20 minutes

Will reduce average travel time between Clark and Calamba from 3 hours to 1 hour and 40 minutes

Will benefit 35,000 motorists/vehicles per day

Approved by the NEDA Board in February 2015

Implementation period: November 2016–November 2020

4. Ninoy Aquino International Airport (NAIA) Expressway Phase II (P15.86 billion)

7.15-km, four-lane elevated expressway from Sales Avenue going to Andrews Ave., Domestic Road, MIA Road, and ends at Macapagal Blvd./PAGCOR Entertainment City

Will reduce average travel time between Skyway/SLEX and NAIA Terminal 1 from approximately 24 minutes to 8 minutes and will benefit 80,000 travelers per day

Approved by the NEDA Board in May 2012

Implementation period: January 2014–April 2016 Accelerated completion date for Phase II-A (Macapagal Blvd.-MIA Road/NAIA Terminals 1 and 2) is in October 2015

Ongoing, 40.11% as of June 2015

5. Tarlac-Pangasinan-La Union Expressway (TPLEX) (P21.38 billion)

88.85-km expressway from Tarlac to La Union, connecting 10 municipalities4

Will reduce average travel time between Tarlac City and Rosario, La Union from 3.5 hours to 1 hour and will benefit around 20,000 travelers per day

Approved by the NEDA Board in January 2010

Implementation period: July 2010– December 2016 Section 1 Tarlac City to Rosales, Pangasinan (49.30 km) opened to traffic in April 2014; section 2 Rosales to Urdaneta City (13.72 km) opened to traffic in February 2015; and section 3 Urdaneta to La Union (25.83 km) – 7-km section is ongoing

6. Central Luzon Link Expressway, Phase I (P14.94 billion)

30-km, four-lane, expressway from Tarlac City to Cabanatuan City

Will connect Tarlac City, La Paz, Zaragoza, Aliaga, and Cabanatuan City, Nueva Ecija


Implementation period: November 2015– April 2019

4 These are Tarlac City, Victoria, Gerona, Paniqui, Moncada, and San Manuel in Tarlac; Rosales, Urdaneta City,

and Pozzorubio in Pangasinan; and Rosario in La Union.


Will reduce average travel time between Tarlac City and Cabanatuan City from 69 minutes to 20 minutes and will benefit 11,200 motorists per day

7. Arterial Road Bypass Project, Bulacan (Plaridel Bypass Road)

Phase I (P3.72 billion) 17.05-km road and eight bridges (301 lm)

Started in January 2009 and completed in November 2012

Phase II (P3.34 billion)

9.96-km bypass road, four new bridges, drainage facilities, and slope stabilization works


Implementation period: July 2014–January 2018

Traverses the municipalities of Balagtas, Guiguinto, Plaridel, Bustos, and San Rafael in Bulacan; and connected the NLEX in Balagtas, Bulacan with the Maharlika Highway in San Rafael, Bulacan

Will reduce average travel time between Burol, Balagtas and Maasim, San Rafael in Bulacan from 69 minutes to 24 minutes and will benefit 15,132 motorists per day

8. Southern Tagalog Arterial Road (STAR), Phase II, Batangas (P2.32 billion)

Construction of additional two lanes of 19.74-km Portland Cement Concrete Pavement, including asphalt overlay of 22.16-km, 4-lane North and Southbound lanes of Sto. Tomas to Lipa City Section (Stage 1)

Connected Sto. Tomas, Tanauan, Malvar, Lipa, and Ibaan municipalities in Batangas and reduced average travel time between Sto. Tomas and Batangas City from 55 minutes to 30 minutes

Started in May 2013 and completed in May 2015

9. Muntinlupa-Cavite Expressway (MCX) Project (Daang Hari-SLEX Link Road) (P2.01 billion)

4-km, four-lane paved toll road

Will connect Bacoor, Cavite to SLEX

Will reduce travel time between Cavite and Makati from 90 minutes to 45 minutes and will benefit 25,000 motorists per day

Approved by the NEDA Board in July 2011

Implementation period: April 2012–July 2015

Opened on 24 July 2015

10. C-6 Phase I (Southeast Metro Manila Expressway) (P31.32 billion)

34-km, six-lane expressway from Skyway FTI, Paranaque City to Batasan, Quezon City

The entire C6 project is envisioned to extend from FTI in Parañaque City to San Jose Del Monte, Bulacan

It will decongest EDSA, C5, and other major arteries of Metro Manila by providing an alternate route between Paranaque and Quezon City

Implementation period: October 2015–July 2019

11. Metro Manila Skyway (MMS) Stage 3 (P37.43 billion)

14.8-km, six-lane expressway

Will connect Balintawak, Quezon City to Buendia, Makati

The MMS3, along with the C6 and NLEX-SLEX Connector form part of the Metro Manila Expressway envisioned under Presidential Decree 18945 issued in 1983

Will decongest EDSA and other major roads in Metro Manila (e.g., Quezon Avenue, Araneta Avenue, Nagtahan) by as much as 55,000 vehicles daily and reduce travel time

Implementation period: January 2015–January 2018

5 Amending the franchise of the Philippine National Construction Corporation to construct, maintain, and operate toll

facilities in the North Luzon and South Luzon Expressways, to include the Metro Manila Expressway to serve as an additional artery in the transportation of trade and commerce in the Metro Manila area.


from Buendia to Balintawak from 2 hours to 15 to 20 minutes

12. NLEx Harbor Link Project – Segment 8.2 (P6.50 billion)

7.5-km, four-lane divided expressway

Will connect Mindanao Avenue to Commonwealth Avenue in Quezon City

Will reduce travel time from Mindanao Avenue to Commonwealth Avenue from 45 minutes to 10 minutes

Implementation period: first quarter 2017-fourth quarter 2019

13. NLEx Harbor Link Project – Segment 9 (P1.15 billion)

2.42-km, four-lane expressway

Connects NLEX Mindanao Avenue Link (Segment 8.1) at the Smart Connect Interchange to McArthur Highway in Valenzuela City

Reduced travel time from Mindanao Avenue to MacArthur Highway from 30 minutes to 5 minutes

Started in 2013 and completed in March 2015

14. NLEx Harbor Link Project – Segment 10 (P9.00 billion)

5.65-km, four-lane elevated expressway

Will connect McArthur Highway in Valenzuela City and C-3 in Caloocan City

Will decongest Metro Manila traffic by providing access to NLEX without passing through EDSA or the Balintawak Toll Plaza and improve movement of cargo between NLEX and the Radial Road 10

Implementation period: 2014–2017 (15.47% complete as of June 2015)

15. South Luzon Expressway (SLEX) Toll Road 4 (TR4) (P13.1 billion)

58-km, four-lane expressway extension

Will connect Sto. Tomas (Batangas), Macban (Laguna), San Pablo (Laguna), Tiaong (Quezon), Candelaria (Quezon), and Lucena (Quezon)

Mandated under Presidential Decree 1894

Will facilitate faster and safer travel to Laguna, Batangas, Quezon, and the Bicol region and reduce travel time from Sto. Tomas, Batangas to Lucena, Quezon from 4 hours to 1 hour and benefit an estimated 17,000 travellers per day

Implementation period: January 2016–December 2020

16. Davao City Bypass Road Construction Project (P16.82 billion)

44.58-km road including a tunnel and a bridge

Will connect 12 barangays starting from Barangay Sirawan, Toril, Davao City to Barangay JP Laurel, Panabo City, Davao del Norte


Implementation period: 2018–2021

Sources: DPWH, DOTC, and PPP Center

C. AIRPORT DEVELOPMENT PROJECTS


1. Mactan Cebu International Airport New Passenger Terminal, Cebu (P17.52 billion)

Construction of a new passenger terminal building (PTB) to increase the airport’s capacity from 4.5 million to 15 million passengers per year; and handover of airport’s Operations and Maintenance (O&M) to a concessionaire


Winning concessionaire (GMR Megawide) assumed airport O&M in November 2014

Implementation period: June 2015–June 2019

2. Puerto Princesa Airport Development Project, Palawan (P4.46 billion)

Construction of new facilities such as a PTB, cargo terminal building, apron, connecting taxiways, and other support facilities to increase the airport’s capacity from 350,000 to 2 million passengers per annum

Approved by the NEDA Board in September 2012

Implementation period: August 2014–January 2017 (30% complete as of 22 June 2015)

3. Laguindingan Airport Development Project, Misamis Oriental (P22.32 billion)

Construction of a new airport to replace the Lumbia and Baloi Airports in Cagayan de Oro and Iligan cities, which have terrain and weather restrictions (P7.70 billion)

Expansion of airport and handover of O&M to private concessionaire (P14.62 billion)

Can accommodate 1.6 million passengers per annum

Approved by the NEDA Board in December 2010

Opened as visual flight rules only airport6 in June 2013; air navigation facilities fully installed in November 2014

4. New Bohol International Airport, Bohol (P11.71 billion)

Construction of a new airport in Panglao Island, Bohol to replace the Tagbilaran Airport due to its limited capacity for expansion and operational safety concerns (P7.14 billion)

Turnover of O&M to private concessionaire and future expansion of the airport (P4.57 billion)

Can accommodate 1.7 million passengers per annum

Approved by the NEDA Board in June 2014

Implementation period: June 2015-December 2017

5. Bicol International Airport, Albay (P4.80 billion)

Construction of a new airport in Daraga, Albay to replace the Legaspi Airport, which has terrain and weather restrictions

Can accommodate approximately 2 million passengers per annum


Implementation period: December 2013-June 2018

Airside works (e.g., runway and taxiways) 65% complete as of 24 July 2015

6. NAIA Terminal 1 Rehabilitation (P2.64 billion)

Rehabilitation of the NAIA Terminal 1 (e.g., renovation of facilities)

Implementation period: January 2014-September 2015

Source: DOTC

6 VFR is a flight wherein pilots must be able to fly the aircraft by looking outside the windows using visual references,

(see other aircraft, terrain, and obstacles). This is only permitted when there is adequate visibility.

D. SEA PORT PROJECTS


1. Puerto Princesa Port, Palawan (P850.90 million)

Five projects involving various works such as the construction of back-up areas and reinforced concrete wharves, expansion of PTB, and installation of port lighting systems

Implementation period: February 2012–Q3 2017

2. Iloilo Port and River Wharf, Iloilo City (P756.76 million)

Six projects involving various works such as paving of container yard and backup area, construction of wharf, passenger terminal, and other berthing facilities

Implementation period: July 2011–Q3 2016

3. General Santos Port, General Santos City (P328.04 million)

Seven projects involving various works such as rehabilitation of reinforced concrete wharves and Roll-On Roll-Off ramp, construction of port operations building, PTB, and gates

Implementation period: December 2014–Q3 2018

4. Currimao Port, Ilocos Norte (P124.51 million)

Rehabilitation and extension of the reinforced concrete pier Implementation period: December

2013–July 2015 (98.23% complete as of 06 July 2015)

Sources: DOTC and PPA

E. MASS TRANSIT SYSTEMS


1. North-South Railway Project North Line (P117.30 billion)

Construction of a rail line from Malolos, Bulacan to Tutuban, Manila


Implementation period: Q3 2017–Q3 2020

Operations targeted by the first quarter of 2021

2. North-South Railway Project South Line (P170.70 billion)

Construction of a rail line from Tutuban, Manila to Legazpi, Albay, with possible extension to Matnog, Sorsogon and a spur from Calamba, Laguna to Batangas


Implementation period: Q3 2017–Q3 2020

Operations targeted by the first quarter of 2021

3. Light Rail Transit (LRT) Line 1 South Extension Project (P64.90 billion)

Extension of the LRT from Baclaran to Bacoor, Cavite and privatization of the O&M of the system (existing and extension).

Will increase ridership from 470,000 passengers per day to 790,000 passengers per day


Implementation: Q2 2016-Q1 2020

Full operations of the extension targeted by Q1 2020

4. Metro Rail Transit (MRT) Line 3 Projects (P9.97 billion)

Procurement of 48 new Light Rail Vehicles and upgrading of ancillary systems (e.g., power supply) (P4.60 billion)

Procurement of maintenance providers (i.e., interim/6 months and 3-year providers) (P4.54 billion)

Rehabilitation of rail, traction motors, signaling systems, and conveyance systems, among others (P834 million)

Will increase passenger capacity and reduce waiting time for trains.


Implementation period: February 2014-January 2017

Delivery of LRV prototype will be in August 2015, after which, 3-4 LRVs will be delivered per month starting January 2016 until all 48 LRVs have been delivered.

Interim maintenance contracts for the rails and tracks; power and overhead catenary systems; communications; building and depot facilities; automatic fare collection system; and rolling stocks are ongoing while maintenance contract for the conveyance facilities is pending issuance of Notice to Proceed. Contract period is from July to December 2015

Rail replacement targeted from March 2015 to March 2016

Rehabilitation of 12 escalators targeted for completion by December 2015; while rehabilitation of 32 elevators and 34 escalators is targeted by Q2 2017

Signaling system upgrade targeted from August 2015 to February 2016

5. Cebu Bus Rapid Transit (P10.60 billion)

Establishment of a transport system with around 176 buses that will run through dedicated and exclusive bus-ways from Bulacao to Talamban in Cebu City, with a link to Cebu’s South Road Property

Entails the installation of 33 bus stations along the 23-km corridor in Cebu City


Ongoing Detailed Engineering Design (DED)

Implementation period: July 2016-July 2018


6. Metro Manila Integrated Transport System (P6 billion)

Establishment of integrated transport terminals to service the estimated 9,000 provincial buses plying Metro Manila’s roads. It is composed of three terminals: Southwest (SW)Terminal (Cavite routes) South Terminal (Laguna and Batangas routes) North Terminal (Northern Luzon routes), with location

and cost to be determined by DOTC

South and Southwest Terminals approved by the NEDA Board in May 2014

Southwest Terminal implementation period: December 2015-June 2017; full operation by July 2017

South Terminal implementation period: June 2016-December 2017; full operation by January 2018

North Terminal: feasibility study ongoing

7. Automatic Fare Collection System (P1.72 billion)

Development and implementation of a single contactless automatic fare collection system in LRT Lines 1 and 2 and the MRT Line 3 to replace the existing magnetic stripe collection technology and allow the use of a card for all three lines


Full system operation by December 2015

Source: DOTC

F. FLOOD CONTROL PROJECTS

Project Name and Description Status/Timelines Flood Management Master Plan (P28.7 billion)

1. Pasig-Marikina River Channel Improvement Project, Phase II (P5.54 billion)

Channel improvement works consisting of revetments7 (7.64 km), river walls (7.65 km), and appurtenant drainage improvement works (123 outlets) at priority critical sections of Pasig River

Reduced frequency of bank overflow and mitigated annual flood damages of P1.19 billion for assets in 255 ha

Relieves 170,000 people and 37,954 various infrastructures and facilities from flood

Completed in May 2013

2. Pasig-Marikina River Channel Improvement Project, Phase III (P7.54 billion)

Channel improvement works consisting of revetments (7.92 km), river walls (5.52 km), and dredging works (889,100 cu. m) at remaining sections of Pasig River and priority critical sections of Lower Marikina River

Will decrease flood inundation by 18% equivalent to 750 hectares (ha) from 4,200 ha to 3,450 ha

Will reduce annual flood damages by P14.3 billion from P80.6 billion to P66.3 billion

Will reduce affected population by 200,000 from 1.2 million to 1 million

Ongoing, 26.97% as of 30 June 2015; for completion in June 2017

3. Mandaluyong Main Drainage Projects (P609.14 million)

Improvement of drainage system in Maysilo Area and its immediate vicinity

Ongoing, 64.28% as of June 2015; for completion in May 2016

4. Blumentritt Interceptor Catchment Area (P600 million)

Construction/Rehabilitation of Drainage System from Estero De Sunog Apog to Piy Margal in Sampaloc, Manila

Ongoing, 82.07% as of 30 June 2015; for completion in March 2016

5. High-impact flood control projects (P5 billion)

Includes the Valenzuela-Obando-Meycauayan (VOM) Project in NCR, the San Fernando-Sto. Tomas-Minalin Tail Dike Project in Region III, and the Sta. Maria-Mabitac River Project in Region IV-A

Ongoing, 97.56% as of 30 June 2015; for completion in November 2015

Other Major Flood Control Projects

6. Pinatubo Hazard Urgent Mitigation Project Phase III (P5.75 billion)

Will reduce flood and damages in the city of San Fernando and municipalities of Guagua, Sasmuan, Bacolor and Lubao in Pampanga

Ongoing, 99.48% as of 30 June 2015; for completion in October 2015

7. Flood Management Risk Project (P5.59 billion)

Cagayan River in Cagayan Valley

Works include revetments (3.3 km), excavation, and backfill/embankment

Will address bank erosion that leads to loss of economically high-value lands in Tuguegarao City and parts of Cagayan Province

Implementation period: March 2016–February 2019

Tagoloan River in Misamis Oriental

Construction of the remaining section of the dike system in the lower Tagoloan River Basin, which will reduce flooding and contribute to the continuous development of the area

Imus River in Cavite

Construction of two off-site retarding basins along Imus River and Bacoor River, which will reduce flood flow in the area

8. Flood Management Project for Cagayan de Oro (P8.55 billion)

Implementation of structural measures (e.g., construction of new dike/retaining wall, retarding basin, and new road/raising of existing road) and non-structural measures (e.g., flood hazard map, evacuation planning)

Implementation period: July 2017–July 2021

Source: DPWH

7 Refer to concrete structures that are built to act as barriers against waves, preventing areas from being eroded.

G. HEALTH FACILITIES ENHANCEMENT PROGRAM (HFEP)-FUNDED HEALTH FACILITIES

Health Facility Funding Description

Select Upgraded Hospitals Within and Outside Metro Manila

1. Region 1 Medical Center (Pangasinan)

P124.3 million

(2010, 2013, and 2014 HFEP)

Its upgrading, which involves among others the renovation of its outpatient department and construction of an emergency room, came as a big convenience to patients in its catchment areas who now have a choice of not traveling to Metro Manila for treatment.

2. East Avenue Medical Center (Quezon City)

P857 million

(2013 and 2014 HFEP)

Various renovations increased the number of private and PhilHealth rooms by 33%, from 120 to 160.

The Emergency Room and Trauma Center upgrade resulted in an improved response to emergency cases and increased capacity load to more than 350 patients/day from 150 patients/day before its development.

The expansion and provision of three additional dental chairs led to a 10% increase in patients served.

The overall impact resulted in an increase in daily census of patients from 750 to 900.

3. Philippine Heart Center (Quezon City)

P100 million

(2013 HFEP)

Expansion and addition of 100 beds (80 beds for charity patients and 20 for dialysis patients) will benefit an estimated 500 to 1,000 additional service patient beneficiaries with cardiovascular problems.

4. Dr. Jose N. Rodriguez Memorial Hospital (Caloocan City)

P455 million

(2010, 2011, 2013, and 2014

HFEP)

Currently serves as the principal referral hospital for leprosy patients and the premier training and research center for leprosy care and management in the country

Now offers minor and major surgery and obstetrics and gynecology services; before, only medicine, pediatrics, and laboratory services were available.

5. Bicol Regional Training and Teaching Hospital (Albay)

P170.5 million

(2010, 2013, and 2014)

With the renovation of its old buildings, construction of a new building, and upgrading of hospital equipment, it operates as a modern hospital that delivers the quality services to all Bicolanos and nearby provinces through expanded PhilHealth services, and DOH programs and accreditations.

6. Vicente Sotto Memorial Medical Center Heart-Lung-Kidney Center (Cebu)

P145 million

(2010 and 2013 HFEP)

The number of heart surgeries and diagnostic procedures performed increased by 55% or 157 successful surgeries/procedures for each year in 2012 and 2013 compared to 101 in 2010.

Eight successful kidney transplant procedures have been performed since 2012.

7. Corazon Locsin Montelibano Memorial Regional Hospital (Negros Occidental)

P440 million (2010 and 2013

HFEP)

With an ultra-modern infrastructure with the construction of its six-story West Tower and upgrading of its old structures, the hospital’s capacity was enhanced to manage specialized cases (e.g., cancer treatment and renal transplant operation).

The number of patients served increased by 55% from 40,280 in 2013 to 62,586 in the first semester of 2014 and is expected to reach 300% by the end-2015.

8. Northern Mindanao Medical Center (Misamis Oriental)

P185 million

(2013 HFEP)

Its capacity has been continuously upgraded and enhanced in handling complicated heart, lung, and kidney operations and procedures. Heart surgeries and kidney transplants were made available to patients who could not go to Manila due to financial constraints.

Since March 2013, successful open heart surgeries in sixteen patients have been conducted. In addition, thirteen kidney transplant procedures have been done since September 2012, with all kidney transplant patients doing well.


9. Davao Regional Hospital – Cancer Center for Mindanao

(Davao Del Norte)

P157.4 million

(2010 HFEP)

Involves the construction and procurement of equipment for the Cancer Center

Equipped with a state-of-the-art Linear Accelerator Machine, which delivers high-energy beams to the region of the patient’s tumor, and through which, cancer cells are destroyed while sparing the surrounding normal tissue, contrary to the usual radiation therapy using Cobalt Machine.

Select Upgraded District Hospitals

10. Concepcion District Hospital (Concepcion, Tarlac)

P11.25 million

(2011 and 2012 HFEP)

The number of facility-based deliveries increased by 10%, from 1,685 in 2011 to 1,854 in 2014.

11. Porac District Hospital (San Fernando, Pampanga)

P16.0 million

(2012 and 2013 HFEP)


12. Vicente Gustilo District Hospital (Escalante City, Negros Occidental)

P13.4 million

(2011, 2012, and 2014)

The number of patients served increased by 56%, from 6,541 patients in 2010 to 10,202 patients in 2014.

The number of surgical operations and deliveries with complicated cases increased by 84%, from 45 in 2010 to 83 in 2014.

Revenues coming from PhilHealth and other sources increased by 425% from P11 million in 2010 to P57.8 million in 2014.

13. Cadiz District Hospital (Cadiz City, Negros Occidental)

P20.35 million

(2012 and 2014 HFEP)

The number of patients served increased by 106%, from 2,421 in 2010 to 4,995 in 2014.

The number of surgical operations and deliveries with complicated cases increased by 1,285%, from 20 in 2010 to 277 in 2014.

14. Lorenzo D. Zayco Memorial District Hospital (Kabanlakan City, Negros Occidental)

P27.93 million

(2012 and 2014 HFEP)

The number of patients served increased by 31.6%, from 6,577 in 2010 to 8,656 in 2014.

The number of surgical operations and deliveries with complicated cases increased from 0 in 2010 to 528 patients in 2014.

Revenues coming from PhilHealth and other sources increased by 447%, from P10.3 million in 2010 to P56.3 million in 2014.

15. Ignacio L. Arroyo Memorial District Hospital (Isabela, Negros Occidental)

P21.3 million

(2011, 2012, 2013, and 2014

HFEP)

The number of patients served increased by 32%, from 4,174 patients in 2010 to 5,511 in 2014.

The number of deliveries increased by 73%, from 387 in 2010 to 669 in 2014.

Revenues coming from PhilHealth and other sources increased by 369%, from P5.1 million in 2010 to P23.9 million in 2014.

Select Upgraded Barangay Health Stations

16. Nabuklod BHS (Floridablanca, Pampanga)


17. Capas Birthing Facility (Capas, Tarlac)

Facility-based deliveries increased by 43%, from 14,821 in 2010 to 21,178 in 2013.

Source: DOH

H. MAJOR HOSPITALS FOR MODERNIZATION


1. Philippine Orthopedic Center (Quezon City)

Total Cost Requirement: P5.69 billion (infrastructure and equipment)

Available Funding and Source: P5.69 billion / PPP

Envisioned to be the “Center for Bone and Joint Diseases, Trauma, and Rehabilitation Medicine,” it will be transformed into a modern orthopedic center with the capacity to provide high-quality orthopedic care, complemented by state-of-the art diagnostic and surgical facilities.

Involves the construction of a 700-bed capacity super-specialty orthopedic hospital within the National Kidney and Transplant Institute compound in Quezon City

Construction will commence in 2016

Target completion is in 2018

2. Dr. Jose Fabella Memorial Hospital (Manila)

Total Cost Requirement: P1.6 billion (infrastructure)

Available Funding and Source: P1.59 billion / 2013 and 2014 HFEP

Involves the construction of a nine-story hospital that will increase bed capacity from 477 to 800 and the upgrading of its health facilities to improve maternal health outcomes

Construction commenced in April 2015

Target completion is in June 2017

3. Cagayan Valley Medical Center (Tuguegarao City)

Total Cost Requirement: P281.63 million (infrastructure)

Available Funding and Source: P281.63 million

(infrastructure) / PPP Strategic Support Fund 2012

P50 million (equipment) / 2015 HFEP

Involves the construction of a five-story hospital building that will increase bed capacity from 300 to 600 to improve accessibility to quality hospital care, especially for the indigent patients in the Cagayan Valley Region

Construction commenced in June 2014

Target completion is in December 2015

Source: DOH

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