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The Republic of the Philippines Good Governance is Good Economics: Achieving Investment Grade February 2013
The Republic of the Philippines
Good Governance is Good Economics:
Achieving Investment Grade
February 2013
Contents I. Macroeconomic Performance and Outlook Real Sector ...................................... …………………………………. . 3 Monetary, External and Financial
Contents
I.
Macroeconomic Performance and Outlook
Real Sector ......................................
………………………………….
.
3
Monetary, External and Financial ……………………………………….
19
Fiscal
Revenue Collection and Debt Management …………………….
32
Expenditure Management and Procurement Reforms …………
46
II.
Sectoral Performance and Outlook
Trade, Industry and Investments
…………… ..
62
Agriculture …… ………………………………………………………… ...
79
Tourism ……………………………………………………………………
96
Infrastructure
Energy ………………………………………………………………
107
Transport and Flood Management …………… ...........................
119
Airports, Seaports, and Mass Transport Systems ......................
138
• Public-Private Partnership ….………… ……………………… ...
147
III.
Profiles of Speakers and Panel Discussants
……………………………
157
IV.
Directory of Economic Agencies …………………………………………… ..
175
V.
Investor Relations Office Brochure ………………………………………… ..
177
2
Real Sector Secretary Arsenio M. Balisacan National Economic and Development Authority 3
Real Sector
Secretary Arsenio M. Balisacan
National Economic and Development Authority
3
Comparative GDP growth shows Philippines performing better in recent years ... GDP Growth: Philippines vs. Other
Comparative GDP growth shows Philippines performing
better in recent years ...
GDP Growth: Philippines vs. Other Asian Countries
16.0
14.0
12.0
10.0
7.8
8.0
6.6
6.0
6.2
5.0
4.0
2.0
1.2
0.0
2005
2006
2007
2008
2009
2010
2011
2012
-2.0
-4.0
China
Indonesia*
Viet Nam
Malaysia
Philippines
Thailand
Singapore
Sources: ADB ARIC; official country websites
*Indonesia: Reuters
2012 FY data for Thailand and Malaysia are not yet available
4
%
The 2012 growth brings us closer to 7-8% target GDP Growth Rate vs. Official Target 9.0
The 2012 growth brings us closer to 7-8% target
GDP Growth Rate vs. Official Target
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
GDP growth rate
Low-end target
High-end target
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
*Philippine Development Plan: 2011 – 2016 targets
5
%
% % Philippines is commended for sound macroeconomic fundamentals Low and stable inflation Favorable interest rates
%
%
Philippines is commended for sound macroeconomic
fundamentals
Low and stable inflation
Favorable interest rates and
sound banking system
9
9.0
20.0
8
8.0
7
7.0
15.0
NPL Ratio, LHS
6
6.0
5
5.0
Real interest rates, LHS
10.0
4.0
CAR, RHS
4
3.0
3
5.0
2.0
2
1.0
2005
2006
2007
2008
2009
2010
2011
2012
0.0
0.0
Headline Inflation
Low Target
High Target
2005
2006
2007
2008
2009
2010
2011
2012
Sustainable fiscal position
Strong external position
60.0
6.0
70.00
0.00
-0.50
65.00
50.0
5.0
-1.00
-1.50
60.00
40.0
4.0
-2.00
55.00
-2.50
30.0
3.0
-3.00
50.00
-3.50
20.0
2.0
-4.00
45.00
-4.50
10.0
1.0
40.00
-5.00
0.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
Q1-Q3
2005
2006
2007
2008
2009
2010
2011
2012*
External Debt/GDP ratio, LHS
Current Account/GDP ratio, RHS
NG Debt/GDP (LHS)
Fiscal Balance/GDP (RHS)
* CA: Jan - Sept 2012;
External Debt: as of Sept 2012
6
%
%
%
%
%
Improvement in governance and competitive indicators ... ... with ratings moving in the right direction WEF
Improvement in governance and competitive indicators ...
...
with
ratings moving in the right direction
WEF Competitiveness Rankings
Philippines Credit Ratings
Source: Moody’s, S&P and Fitch
7
Has growth been inclusive? Self-rated poverty and severe hunger exhibit declining trend Self-rated poverty Severe hunger
Has growth been inclusive?
Self-rated poverty and severe hunger exhibit declining trend
Self-rated poverty
Severe hunger
Hodrick-Prescott Filter (lambda=1600)
Hodrick-Prescott Filter (lambda=1600)
80
8
70
6
60
4
20
3
50
2
2
10
1
40
0
0
0
-1
-10
-2
-20
-3
10
20
30
40
50
60
70
80
90
5
10
15
20
25
30
35
40
45
50
55
POV
Trend
Cycle
S_HUNGER
Trend
Cycle
Source: SWS Survey http://www.sws.org.ph/ind-pov.htm
8
Regional GDP, in % share to Philippine GDP (2009 – 2011) But distribution of economic activity
Regional GDP, in % share to Philippine GDP (2009 – 2011)
But distribution of economic activity remains unequal
14.5%
14.1%
14.1%
12.6%
12.5%
61.7%
12.8%
62.5%
62.4%
10.9%
11.2%
10.8%
2011
2009
2010
9
Addressing constraints to growth Accelerate infrastructure development Provide adequate and efficient power supply Enhance administrative efficiencies
Addressing constraints to growth
Accelerate infrastructure development
Provide adequate and efficient power supply
Enhance administrative efficiencies
10
Improve revenue and tax efforts to increase resources infrastructure and social spending for Revenue and Tax
Improve revenue and tax efforts to increase resources
infrastructure and social spending
for
Revenue and Tax Efforts (%of GDP)
17.00
16.49
16.00
15.62
15.58
15.00
14.72
14.37
14.00
13.99
13.97
13.42
13.59
13.71
13.11
13.00
13.54
12.43
12.35
12.00
12.23
12.15
11.00
10.00
2005
2006
2007
2008
2009
2010
2011
2012
Revenue Effort*
Tax Effort*
*Q1 – Q3 only
11
Ensure that no region is left behind… B A TA N ES National Road Classification North-South
Ensure that no region is left behind…
B A TA N ES
National Road Classification
North-South Backbone
East-West Lateral
I LO C O S N O R T E
A P AY A O
C AG A Y AN
A B RA
K A LI NG A
Other Road of Strategic Importance
IL
O C O S S U R
M
T P RO V I N CE
I SA B EL
A
I F UG A O
L
A
UN I O N
B E NG U E T
Secondary National Road
N U EV A
VI Z CA Y A
Q U I RI N O
PA N G A S IN A N
A U R O R A
N UE
VA
EC I JA
T A R LA C
ZA M B AL
E S
P A M P AN G A
B U L
AC A N
B A TA A N
M E TR O
RI Z AL
M A N IL
A
C A V IT E
C A M A R IN E S
NO R T E
LA G U NA
B AT A N G AS
QU E Z ON
C A TA N D U AN E S
C AM A R I N ES
S U R
M A R I ND U Q
UE
AL
BA Y
M
IN D O R O O R I E N T AL
M IN D O R O
O C C I DE N TA L
S O RS
O G ON
NO R
TH E R N S A M AR
R O M B LO N
M A SB A TE
S AM A R
EA S T E RN
S AM
AR
AK LA N
B I LI RA
N
C AP I Z
A N T I Q U E
IL
O I LO
LE Y TE
G UI M A R A S
SO U T H ER N
L
EY T E
NE G
RO S
O C CI D E NT
AL
C EB U
B O H OL
PA L
A WA N
N EG
R O S O R I EN T AL
SU R I G AO
D E L
N O R T E
S I Q UI JO
R
CA M I G U IN
S U R IG A O
N O R TE
D EL
S
U R
AG U S AN
D E L
M I S AM I S O R I
EN T AL
AG U S A N
DE L
S U R
M
IS A M I S O C C ID E N T AL
B UK I D N O N
ZA M B O A NG
A D E L
N O R TE
LA N AO
D E L
N O R TE
ZA M B O A N G A S IB U G A Y ZA M B O A NG
A D E L
S UR
LA N AO
D E L
S U R
D AV A O D E L
N O R T E
C O M
PO S TE L
A V A LL
EY
C O T AB A TO
D AV A O D E L
S U R
D A VA O
O R I EN T AL
M A G U IN D A N AO
BA S IL
A N
S U LT AN
K U D A RA T
S O U TH
C O TA B A T O
SA R AN G A N I
S U LU
TA WI - TA WI
Source: DPWH
12
Firm commitment to meet the Millennium Development Goals High priority given to health and education Conditional
Firm commitment to meet the Millennium Development
Goals
High priority given to health and education
Conditional Cash Transfer Program
K+12 program
Competence in Math, Science and English
13
Agriculture will remain a priority sector Importance of Agriculture in GDP Labour Productivity in Agriculture, and
Agriculture will remain a priority sector
Importance of Agriculture in GDP
Labour Productivity in Agriculture,
and employment (%)
Selected ASEAN Countries (1980-2011)
12000.0
37.0
13.5
13.0
36.0
10000.0
12.5
35.0
8000.0
12.0
34.0
11.5
Indonesia
6000.0
11.1
33.0
Malaysia
11.0
32.2
Philippines
32.0
4000.0
Thailand
10.5
Vietnam
31.0
10.0
2000.0
30.0
9.5
2005
2006
2007
2008
2009
2010
2011
2012
0.0
Agri share in
Agri share in GDP, RHS
Employment by Sector, LHS
Share to GDP, RHS
employment, LHS
Source: FAOSTAT
14
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Simplifying labor regulation and address skills mismatch 15
Simplifying labor regulation and address skills mismatch
15
Climate Change Adaptation & Disaster Risk Reduction Management CCA & DRRM • • • Climate change-resilient
Climate Change Adaptation &
Disaster Risk Reduction Management
CCA & DRRM
Climate change-resilient infrastructure
Disaster preparedness
Use of technology
16
Good governance will continue to be the platform of public administration Address inefficiency Minimize corruption Accountability
Good governance will continue to be the platform of public
administration
Address
inefficiency
Minimize
corruption
Accountability
Transparency
17
Institutional Reforms With focus on enhancing responsiveness and reducing inefficiencies Consistency of Policies Alignment of plans
Institutional Reforms
With focus on enhancing responsiveness and reducing inefficiencies
Consistency
of Policies
Alignment of
plans and
policies
Efficiency of
regulation
18
Monetary, External and Financial Sectors Governor Amando M. Tetangco, Jr. Bangko Sentral ng Pilipinas 19 19
Monetary, External and Financial Sectors
Governor Amando M. Tetangco, Jr.
Bangko Sentral ng Pilipinas
19
19
Outline I. 2012 Performance/Achievements II. 2013 Economic Outlook III. BSP’s Policy Directions 20
Outline
I.
2012 Performance/Achievements
II.
2013 Economic Outlook
III. BSP’s Policy Directions
20
Policy/reform milestone and their impact Policy Impact Monetary Reduced policy interest rates by a cumulative of
Policy/reform milestone and their impact
Policy
Impact
Monetary
Reduced policy interest rates by a cumulative of 100 basis points
Price stability and non-
to 3.5 percent from 4.5 percent for the RRP (borrowing) rate and
inflationary growth
Sector
to 5.5 percent from 6.5 percent for the RP (lending) rate
Implemented operational adjustments in reserve requirements
(RR) policy and the Special Deposit Account (SDA) facility
External
Maintained presence in foreign exchange market and built up GIR
Strong external position and
stable exchange rate
Sector
Sustained improvement of external debt management
Adopted a number of macro prudential regulations, including the
increase in capital charge for non-deliverable forwards (NDF)
positions and prescribed a cap on NDF exposure of banks
Financial
Further enhanced the governance standards of BSP-supervised
Efficient, sound, and
financial institutions (FIs) through crafting regulations that would
competitive financial sector
Sector
strengthen individual banking, as follows:
Emphasized the need for FIs’ Boards of Directors to exercise
objective judgments and ensure a stronger system of checks and
balances;
Instituted revisions to compliance programs of banks to better
counter bank reputational risks that erode public’s trust of the
banks.
Announced the adoption of Basel III capital adequacy rules for
universal and commercial banks by 2014
21
Prudent monetary policy supported low inflation and robust output growth Headline Inflation vs. Target Jan 2002
Prudent monetary policy supported low inflation and
robust output growth
Headline Inflation vs. Target
Jan 2002 – Dec 2012
2006=100, in percent
Inflation environment continues
to be favorable
12
Dec 2012 = 2.9%
10
2012 Ave = 3.2%
8
6
4
2
RRP Rate and Average Lending Rate
Jan 2005 – Dec 2012
in percent
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12
10
Headline
Lower Bound of Target
Upper Bound of Target
Dec’12 = 5.7%
8
6
Low lending rate encourages
4
Dec’12 = 3.5%
investment and consumption
2
0
2005
2006
2007
2008
2009
2010
2011
2012
RRP Rate
Average Bank lending Rate
22
Strong external position despite the challenging external environment Balance of Payments 2004 – Dec 2012; in
Strong external position despite the challenging
external environment
Balance of Payments
2004 – Dec 2012; in million US$
BOP position remains in surplus
US$ million
US$ million
10000
20000
Foreign exchange reserves continue
8000
7.1bn
15000
to build-up
6000
10000
4000
5000
5.8bn
2000
0
External debt/GDP declines
0
-5000
significantly
2004
2005
2006
2007
2008
2009
2010
2011
2012
CA (lhs)
BOP (rhs)
Gross International Reserves
2004 – Dec 2012; in billion US$
Total External Debt
2004 – Q3 2012
US$ billion
months
US$ billion
%
90
83.8bn
14
65.0
80
80
12
61.7bn
70
12.0
10
60
60.0
60
8
50
40
6
55.0
40
25.6%
30
4
20
50.0
20
2
10
0
0
45.0
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2004
2005
2006
2007
2008
2009
2010
2011
Q32012
GIR (lhs)
Import Cover (rhs)
External debt in US$ billion (lhs)
External debt as % of GDP (rhs)
23
Sound and stable banking system intermediated funds to productive ends Total Loans, Non-Performing Loans Ratio and
Sound and stable banking system intermediated funds
to productive ends
Total Loans, Non-Performing Loans Ratio and
Non-Performing Loans Coverage Ratio, 2002-Oct 2012
PHP bn
114.0
Quality of loan portfolio
120
104.0
4500
97.8
93.4
87.1
continues to improve
81.6
90
74.4
71.9
3000
58.0
50.2
52.2
60
1500
30
14.6
15.2
13.4
10.8
7.8
5.0
4.1 3.7
3.6
2.8 2.6
0
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Oct'12
TLP, gross (RHS)
NPL Ratio (LHS)
NPL Coverage Ratio (LHS)
Capital Adequacy Ratio, Philippine Banking System,
2002-2011
%
20
Bank capitalization remains
18
16
above regulatory standards
14
and international norms
12
BSP Regulatory Requirement of 10%
10
International Standard of 8%
8
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Mar
'12
CAR, Solo
CAR, Consolidated
Tier 1
24
BSP’s performance 2012 Actual 2012 Target/Forecast 1. Prudent monetary policy Inflation 3.2 percent 3.0-5.0 percent 2.
BSP’s performance
2012 Actual
2012 Target/Forecast
1.
Prudent monetary
policy
Inflation
3.2 percent
3.0-5.0 percent
2.
Robust external
position
Balance of Payments
US$9.2 billion
(BOP)
(Jan-Dec 2012)
US$6.8 billion
Gross International
US$83.8 billion
Reserves (GIR)
(End-Dec 2012)
US$ 83.0 billion
External Debt-to-GDP ratio
25.6 percent
(Q3 2012)
Decreasing
(End 2011: 26.9 percent)
3.
Sound and stable
financial system
Capital Adequacy Ratio
(CAR), consolidated basis
18.0
percent
(UKBs)
(End-Mar 2012)
Increasing
(End 2011: 17.7 percent)
Non-Performing Loans
2.0
percent
(NPL) ratio (UKBs)
(End-Oct 2012)
Decreasing
(End 2011: 2.4
percent)
25
BSP continues to enhance corporate governance Revised existing regulations on corporate governance in line with international
BSP continues to enhance
corporate governance
Revised existing regulations on corporate governance in line with international best
practices such as the “Principles for Enhancing Corporate Governance” issued by
the Basel Committee on Banking Supervision
Approved the amendments to the guidelines strengthening BSP’s governance
standards to rationalize the definition/qualifications of an independent director and
the composition of the members of board-level committees
Approved
the
amendment
to
the
regulations
on
the
confirmation
of
the
election/appointment of directors/officers of banks with a
rank
of senior
vice
president
(SVP)
and
above
to
simplify
the
confirmation
procedures
26
BSP actively pursues policies for inclusive finance Policy, Regulation and Supervision No. 1 in the world
BSP actively pursues policies for inclusive finance
Policy, Regulation and
Supervision
No. 1 in the world in microfinance regulatory environment (2009-2012)
Implemented the enhanced rules on true and transparent lending
Updated Anti-Money Laundering Rules and Regulations, Outsourcing Rules
Widened range of products (i.e., microdeposits, microenterprise loan, housing
microfinance, microinsurance, etc.)
Financial Education and
Consumer Protection
Established Economic and Financial Learning Centers (EFLC) in 23 branches
Institutionalized the Financial Consumers Affairs Group (FCAG) to provide avenue for
complaints resolution and redress.
Data and Measurement
Worked toward a systematic collection of financial inclusion data for informed policy-
making
Mapped out financial service access points:
o
Banking offices went up by 19% to 9,015 in 2011 from 7,585 in 2011
o
ATM network accelerated by 175% to 10,658 in 2011 from 3,882 in 2001
o
Alternative access points (i.e., money changers, remittances agents, etc) increased to
over 26,000
Financial Inclusion
Advocacy
Sustained leadership in global financial inclusion initiatives
Continued work on sharing knowledge and experience in financial inclusion with
international peers
Spearheaded the implementation of the Credit Surety Fund (CSF)
-
As of 2012, 26 CSFs in various provinces have been organized
Ensured the smooth inflow of remittances through the use of PhilPass REMIT System
-
As of 2012, the total number of transactions reached 380,150 with corresponding
value of US$373.6 million since its implementation on 4 May 2010
27
State of financial inclusion in the Philippines Number of Banking Offices and ATMs, 2001-2011 Philippine banking
State of financial inclusion in the Philippines
Number of Banking Offices and
ATMs,
2001-2011
Philippine
banking
system’s
overall
physical network improved
Regional Growth in the number of
Banking Offices and ATMs, 2009-2011
The growth
rate
in
the
number of
branches and ATMs from 2009 to
2011 is noteworthy,
especially
in
some regions in Mindanao.
28
2013 Economic Outlook Actual Actual Projections Projections 2011 2011 2012 2012 2013 2013 Headline Inflation (%,
2013 Economic Outlook
Actual
Actual
Projections
Projections
2011
2011
2012
2012
2013
2013
Headline Inflation (%, 2006=100)
4.6
3.2
3.0 – 5.0 a/
Exports Growth (%) 1/
-6.4
7.9 (Jan-Sep)
10.0
a/
Imports Growth (%) 1/
2.1
2.2 (Jan-Sep)
12.0
a/
OF Remittances 2/
Amount (US$ Bn)
20.1
19.4 (Jan-Nov)
22.2
b/
Growth Rate
7.2
6.0
5.0
b/
Current Account
(US$ Bn)
7.0
7.2 (Jan-Sep)
4.9
b/
Balance of Payments
(US$ Bn)
10.2
9.2 (Jan-Dec)
3.0
b/
GIR (US$ Bn)
75.3
83.8 r/
86.0 b/
a/ Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 28 November 2012
b/ Based on BSP projections as of 15 November 2012
1/ Based on Balance of Payments (BOP) concept.
2/ Remittances coursed through banks
r/ revised
29
Key risks to inflation Downside risk: Weak global economic prospects Sustained stability of the peso against
Key risks to inflation
Downside risk:
Weak global economic prospects
Sustained stability of the peso against the US dollar
Upside risks:
Pass-through of electricity rate hikes
Higher international food prices due to adverse weather conditions in major
producing countries
30
BSP Policy Directions Monetary sector Financial sector External sector Explore further fine-tuning of Continue to align
BSP Policy Directions
Monetary sector
Financial sector
External sector
Explore further fine-tuning of
Continue to align local banking
Maintain market-determined
monetary policy toolkit for the
practices to international
exchange rate
achievement of the BSP’s
standards to make regulatory
mandate of maintaining price
capital framework more risk-
Keep comfortable level of
and financial stability
sensitive
reserves
Sharpen economic
Strengthen further corporate
Continue to promote external
surveillance of shifts in the
governance framework and
debt sustainability
domestic and global inflation
develop appropriate policies in
dynamics, including any
support of improving bank
brewing asset price
operations and risk management
pressures.
Sustain its advocacies on
microfinance, financial inclusion,
consumer protection and
financial education with greater
vigor.
31
Fiscal Sector : Revenue Collection and Debt Management Secretary Cesar V. Purisima Department of Finance 32
Fiscal Sector :
Revenue Collection and Debt Management
Secretary Cesar V. Purisima
Department of Finance
32
Contents I. II. National Government (NG) Fiscal Performance (January - November 2012) Outlook for 2013 i.
Contents
I.
II.
National Government (NG) Fiscal Performance (January - November 2012)
Outlook for 2013
i.
ii.
iii.
iv.
NG Fiscal Program
NG Financing Program
NG Debt
General Government Debt
v.
Consolidated Public Sector Financial Position
III. Policy Reforms and Plans/Projects for 2013
33
1 st eleven months revenue collections at double digit growth Jan - Nov FY 2012 2011
1 st eleven months revenue collections at double digit growth
Jan -
Nov
FY 2012
2011
2012
%
(in Billion Pesos)
Program
Actual
Actual
Variance
Growth
Total Revenues
1,560.6
1,249.8
1,408.6
158.8
12.7%
Tax Revenues
1,427.4
1,105.0
1,247.0
142.0
12.9%
BIR
BOC
Other Offices
1,066.1
849.5
969.3 119.8
14.1%
347.1
243.0
264.3
21.4
8.8%
14.2
12.5 13.3
0.8 6.7%
Non-Tax Revenues
131.2
144.1
153.3
9.2 6.4%
o.w. BTr Income
61.8
72.2
80.0
7.7 10.7%
Fees & Charges
69.4
71.8
73.2
1.4 2.0%
Privatization
2.0 0.7
8.3 7.6
1034.5%
Expenditure
1,839.7
1,346.0
1,535.9
189.8
14.1%
Surplus/(Deficit)
(279.1)
(96.3)
(127.3)
(31.0)
32.3%
34
2013 Fiscal Program in line with medium term fiscal objectives 2011 2012 2013 Growth Rate In
2013 Fiscal Program in line with medium term fiscal
objectives
2011
2012
2013 Growth Rate
In Billion Pesos
Actual
Emerging
BESF 1
(2013/2012)
Total Revenues
1,359.9
1,518.4
1,780.1
15.0%
Tax Revenues
1,202.1
1,351.4
1,651.3
19.0%
BIR
924.1 1,046.0
1,238.6
19.9%
BOC
265.1 291.4
397.3 16.7%
Other Offices
12.8 14.0
15.4 1.5%
Non-Tax Revenues
156.9
158.7 126.9
-14.3%
o.w. BTr Income
75.2
82.8 53.2
-30.3%
Fees and Charges
81.5
75.9 73.6
3.1%
Privatization
0.9 8.3
2.0 -75.9%
Expenditure
1,557.7
1,753.7
2,021.1
13.9%
Surplus/(Deficit)
(197.8)
(235.3)
(241.0)
6.6%
% of GDP
-2.0%
-2.2%
-2.0%
Source: Budget Expenditures and Sources of Financing (BESF) 2013, DBM
1 Cash basis
35
Assumptions for the 2013 Fiscal Program 2011 2011 2012 2012 2013 2013 Actual Actual Actual Actual
Assumptions for the 2013 Fiscal Program
2011
2011
2012
2012
2013
2013
Actual
Actual
Actual
Actual
Program
Program
BESF
BESF
Nominal GDP Growth (%)
8.1
8.6 11.5
Real GDP Growth (%)
3.9
6.6 6.0
Inflation (%)
4.8
3.2 3.0
5.0
Interest Rate (%)
2.4
2.1 1
3.0
Exchange Rate (P/$)
43.30 42.23
42.00
Imports (% growth)
9.5
1.0 1
12.0
Exports (% growth)
-6.9
7.0 1
10.0
Dubai Oil Price ($/barrel)
106.20 108.93
90.00
Source: BESF 2013, DBM
1 Data as of Nov 2012
36
NG Financing program will continue to focus on increasing domestic source of funds National Government Financing
NG Financing program will continue to focus on
increasing domestic source of funds
National Government Financing Program
%
100
84
75
80
66
65
56
60
44
40
34
35
25
16
20
0
2009
2010
2011
Jan-Nov 2012
2013 Program
1
Domestic
Foreign
Source: 1 BESF 2013, DBM
37
NG Debt to GDP ratio will continue to improve National Government Debt-to-GDP P Billion % of
NG Debt to GDP ratio will continue to improve
National Government Debt-to-GDP
P Billion
% of GDP
6,000.0
60.0
5,779.0
54.8
5,500.0
5,358.8
55.0
52.4
5,213.1
50.9
49.5
5,000.0
4,951.2
50.0
50.5
4,718.2
48.0
4,396.6
4,500.0
45.0
4,000.0
40.0
2009
2010
2011
2012
2012
2013
Program
Actual
Program 1
Jan-Sep
Source: 1 BESF 2013, DBM
38
GG Debt/GDP lower than NG Debt/GDP ratio General Government Debt/GDP vs. National Government Debt/GDP % to
GG Debt/GDP lower than NG Debt/GDP ratio
General Government Debt/GDP vs. National Government Debt/GDP
% to GDP
80
68.5
61.4
60
53.9
54.7
54.8
52.4
59.2
50.9
50.5
NG Debt
51.6
GG Debt
40
44.2
44.2
44.3
43.5
41.9
40.9
20
0
2005
2006
2007
2008
2009
2010
2011
Q3 2012
39
Consolidated Public Sector Financial Deficit to further decline Consolidated Public Sector Deficit P Billion % of
Consolidated Public Sector Financial Deficit to
further decline
Consolidated Public Sector Deficit
P Billion
% of GDP
100.0
1.0
(241.4)
(355.8)
(178.7)
(213.9)
(158.3)
0.0
0.0
-100.0
-1.0
-200.0
-1.3
-2.0
-1.8
-2.0
-300.0
-3.0
-3.1
-400.0
-4.0
-4.0
-500.0
-5.0
2009
2010
2011
2012 Prog
2013 Prog
Consolidated Public Sector Deficit as of end Sep 2012 declined to 0.7% of GDP
or P54.7 billion
40
Status of RATE, RATS & RIPS (as of January 17, 2013) Under the Aquino administration Run
Status of RATE, RATS & RIPS (as of January 17, 2013)
Under the Aquino administration
Run After Tax Evaders (RATE)
140 Cases filed
Estimated tax liability of taxpayers : P44.27 Billion
BIR
BIR
Run After The Smugglers (RATS)
120 Cases filed
Estimated tax liability of taxpayers : P52.55 Billion
BOC
BOC
Lifestyle check under the Revenue Integrity Protection Service
(RIPS)
DOF
DOF
55 Cases filed (59 respondents) under the new administration
A total of 129 Cases (172 respondents) from 2003 to Dec. 31, 2012
62 personnel suspended from office; 21dismissed from service
41
Policy Reforms Fiscal Incentives Rationalization (FIR) – Intended to remove redundant incentives to reduce the fiscal
Policy Reforms
Fiscal Incentives Rationalization (FIR)
Intended to remove redundant incentives to reduce the fiscal
costs and ensure that incentives will be given only to those who
need them.
Status: Ongoing discussion (DOF, DTI, BOI) to come up with a
consensus bill.
Review of the fiscal regime of the mining sector
As provided for under Section 4 of EO 79, new mineral
agreements is suspended until a legislation rationalizing existing
revenue sharing schemes and mechanisms shall have taken
effect.
Status: The Mining Industry Coordinating Council (MICC) is
studying options for mining fiscal regime and revenue sharing.
42
Major Plans and Programs for 2013 Bureau of Internal Revenue Invigorated Run After Tax Evaders (RATE)
Major Plans and Programs for 2013
Bureau of Internal Revenue
Invigorated Run After Tax Evaders (RATE)
Oplan Kandado
Re-engineering of other Business Processes
Electronic Official Registry Book (eORB)
Implementation of Internal Revenue Stamps Integrated System (IRSIS)
on the use of Secured Stamps for Cigarettes
Electronic Letter of Authority Monitoring System (eLAMS)
Electronic Certificate Authorizing Registration (eCAR)
Accounts Receivable Management System (ARMS)
Collection Reconciliation System
On-line System for Transfer Tax Transactions (eOSSTTT)
Geographic Information System (Metro Manila Zonal Values and eSales)
Electronic Tax Information Systems (eTIS) Project
43
Major Plans and Programs for 2013 Bureau of Internal Revenue Enhancement of eAccReg and eSales Expansion
Major Plans and Programs for 2013
Bureau of Internal Revenue
Enhancement of eAccReg and eSales
Expansion of ISO Certification to other districts
Re-registration of Taxpayers thru Taxpayer Registration Information
Update (TRIU) Project
Asset Information Management (AIM-P) – TPI Matching of Amnesty
Returns
Interactive Forms
Centralization of Data Processing to the Regional Offices
Increase in Taxpayer Database
Exchange of Information (EOI) Program
Tax Ruling and Case Management System (TRCMS)
Mobile Revenue Collection Officers System (MRCOS)
Organizational and Management Development
Program/Rationalization Plan (RATPLAN)
Procurement, Payment, Inventory and Distribution Monitoring System
44
Major Plans and Programs for 2013 Bureau of Customs Integrate National Single Window (NSW) with Electronic
Major Plans and Programs for 2013
Bureau of Customs
Integrate National Single Window (NSW) with Electronic to Mobile
System (E2M) and Other Government Agencies automated
permit/licensing systems
Strengthen the selectivity system
Rationalize the assignment of discretionary functions and tighten
corresponding accountabilities
Implement automated raw materials liquidation and bond management
Empower internal controls
45
Fiscal Sector: Expenditure Management and Procurement Reforms Secretary Florencio B. Abad Department of Budget and Management
Fiscal Sector:
Expenditure Management and Procurement Reforms
Secretary Florencio B. Abad
Department of Budget and Management
46
Contents I. Fiscal and Disbursement Performance (January-November 2012) II. Progress in the Pursuit of Budget Reforms
Contents
I.
Fiscal and Disbursement Performance (January-November 2012)
II.
Progress in the Pursuit of Budget Reforms
III.
Progress in Reforms of Good Governance and Anti-Corruption
IV. Fiscal Outlook for 2013
V.
Policy Thrusts and Other Plans/Projects for 2013
VI. 2013 Budget for Mindanao
47
Revenue and Disbursement Performance, Jan-Nov 2012 year-on-year % of full-year program Revenues P1,408.6 Bn 12.7 %
Revenue and Disbursement Performance, Jan-Nov 2012
year-on-year
% of full-year
program
Revenues
P1,408.6 Bn
12.7 %
90.3
%
Disbursements
P1,535.9 Bn
14.1 %
83.5
%
P127.3 Bn
32.3 %
45.6 %
Deficit
48
Jan-Nov 2012 Disbursement Performance 2011 vs. 2012 Increase/(Decrease) Jan-Nov 2011 Jan-Nov 2012 Particulars (Php bn) (Php
Jan-Nov 2012 Disbursement Performance
2011 vs. 2012
Increase/(Decrease)
Jan-Nov 2011
Jan-Nov 2012
Particulars
(Php bn)
(Php bn)
Amount
% of FY
Program
%
(Php bn)
REVENUES
1,249.8
1,408.6
158.8
12.7
90.3
DISBURSEMENTS
1,346.0
1,535.9
189.8
14.1
83.5
Current Operating Exp.
PS
MOOE
Subsidy
Allotment to LGUs
Interest Payments
Tax Expenditures
1,127.1
1,258.2
131.1
11.6
87.2
449.2
496.1
46.9
10.4
84.7
151.3
226.5
75.2
49.7
89.0
37.3
25.6
(11.7)
(31.3)
80.7
210.4
200.4
(10.0)
(4.8)
91.7
251.5
282.3
30.8
12.3
88.9
27.4
27.1
(0.3)
(0.9)
79.3
Capital Outlays
Infra & Other CO
Equity
Capital Transfers to LGUs
CARP-LO Compensation
201.9
248.7
46.8
23.2
66.5
118.2
185.6
67.4
57.0
62.2
12.4
1.2
(11.2)
(90.5)
56.3
63.4
62.0
(1.4)
(2.2)
86.9
7.9
-
(7.9)
(100.0)
-
Net Lending
17.0
29.0
12.0
70.5
126.0
SURPLUS/(DEFICIT)
(96.3)
(127.3)
(31.0)
32.3
45.6
49
Progress in the Pursuit of Budget Reforms Objectives of Public Expenditure Management PUBLIC EXPENDITURE PUBLIC EXPENDITURE
Progress in the Pursuit of Budget Reforms
Objectives of Public Expenditure Management
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE MANAGEMENT
MANAGEMENT
ALLOCATIVE
ALLOCATIVE
OPERATIONAL
OPERATIONAL
FISCAL DISCIPLINE
FISCAL DISCIPLINE
EFFICIENCY
EFFICIENCY
EFFECTIVENESS
EFFECTIVENESS
“SPENDING
“SPENDING WITHIN
“SPENDING ON THE
WITH MAXIMUM
MEANS”
RIGHT PRIORITIES”
IMPACT”
50
Progress in the Pursuit of Budget Reforms Tighter Alignment of the Budget with Priorities – 2010:
Progress in the Pursuit of Budget Reforms
Tighter Alignment of the Budget with Priorities
2010: Sustained use of Zero-Based Budgeting to identify and eliminate inefficient and
ineffective programs and projects
2011: Alignment of the Budget with the five Key Result Areas (KRA) of President
Aquino’s Social Contract with the Filipino People
2012: Introduction of Program Budgeting Approach to focus the Budget on identified
priority programs per Social Contract KRA
2013: Budget Prioritization Framework
Fast and Efficient Implementation of the Budget
2010: Disaggregation of Lump-Sum Funds into specific programs and projects to
make budget execution faster and more transparent
2011: Early Bidding of Projects, stopping short of award, before enactment of National
Budget to fast-track procurement
2011: Expansion of the Philippine Government Electronic Procurement Portal
(PhilGEPS) to establish a Virtual Store with an Online Payment Facility
2012: Creation of Account Management Teams at the DBM
2013: Introduced policy for One-Year Validity of Appropriations to enhance funding
predictability
51
Progress in the Pursuit of Budget Reforms Strengthening Performance Budgeting – 2011: Reviewed the Organizational Performance
Progress in the Pursuit of Budget Reforms
Strengthening Performance Budgeting
2011: Reviewed the Organizational Performance Indicator Framework to ensure that
agency outcomes and major final outputs are aligned with the Social Contract
2011: Started harmonizing all government performance management systems into a
single Results-Based Performance Management System (RBPMS)
2012: Introduction of Performance-Based Incentive System to promote meritocracy
and good public service delivery
Transparency & Participation in the Budget
2010: Formulation of government-Civil Service Organization (CSO) principle of
constructive engagement
2011: Introduction and enforcement of Budget provision on the mandatory disclosure
by agencies of their respective budget information (Transparency Seal)
2011 : Start of Departments and GOCCs implementing Agency-CSO Budget
Partnerships in budget preparation
2011: Use of technology to promote transparency: Priority Development Assistance
Fund (PDAF) webpage, budgetngbayan.com
Piloting of Bottom-Up Budgeting Approach in 595 municipalities which resulted in P8.4
billion in community-developed programs and projects
52
Progress in the Pursuit of Budget Reforms Public Financial Management Reform Roadmap 2012-20166 Public Financial Management
Progress in the Pursuit of Budget Reforms
Public Financial Management Reform Roadmap 2012-20166
Public Financial
Management Reform Roadmap 2012-201
Output
s:
Gov’t Integrated
Better Mgt
Results-Based
Treasury Single
Financial Mgt
of Contingent
Budgeting
Account
Info System
Liabilities
Major
Strategies:
2.
2.
Review
Review
3.
3.
Capacity
Capacity
4.
4.
Improve
Improve
5.
5.
Develop
Develop
1.
1.
Build-Up
Build-Up
Fund
Fund
Building for
Building for
Treasury
Treasury
and
and
Credibility of
Credibility of
Release
Release
Congress &
Congress &
Cash Mgt
Cash Mgt
Implement
Implement
PFM
PFM
Procedures
Procedures
CSOs
CSOs
Operations
Operations
GIFMIS
GIFMIS
PFM – Public Financial Management
CSO – Civil Society Organization
GIFMIS – Government Integrated Financial Management Information System
53
DBM as Secretariat to the Cabinet Cluster of Good Governance and Anti-Corruption Good Governance and Anti
DBM as Secretariat to the Cabinet Cluster of Good
Governance and Anti-Corruption
Good Governance and Anti Corruption Plan Framework
54
Select Transparency, Accountability, and Citizens’ Engagement Initiatives Full Disclosure Policy for LGUs, DILG Participatory Audit, COA
Select Transparency, Accountability, and Citizens’
Engagement Initiatives
Full Disclosure Policy for LGUs, DILG
Participatory Audit, COA
Empowerment Fund, DILG
Streamline Business Permits and Licensing System, DTI/DILG
Strengthening Internal Control Systems in Government, DBM
National Justice Information System, DOJ
Registry System of Basic Sectors in Agriculture, DBM
Revenue Integrity Protection Service (RIPS), Run After Tax Evaders (RATE) and Run
After the Smugglers (RATS), DOF
55
2013 Disbursement Program (Obligation Basis) Levels (Php Billion) % Share PARTICULARS Growth 2012 Adjusted Prog 2013
2013 Disbursement Program (Obligation Basis)
Levels (Php Billion)
% Share
PARTICULARS
Growth
2012 Adjusted Prog
2013
2013
(%)
CURRENT OPERATING EXPENDITURE
Personal Services
MOOE
Subsidy
Allotment to LGUs
Interest Payments
Tax Expenditure Fund
1,464.5
1,599.0
79.7
9.2
593.5
640.6
31.9
7.9
266.6
312.9
15.6
17.4
19.7
42.9
2.1
117.7
218.6
241.8
12.1
10.6
333.1
333.9
16.6
0.2
33.0
26.9
1.3
-18.5
CAPITAL OUTLAYS
328.3
380.4
19.0
15.9
Infra.
and Other CO
252.4
297.1
14.8
17.7
Equity
Capital Transfers to LGUs
2.1
2.0
0.1
-3.7
71.3
76.3
3.8
7.0
CARP LO Compensation
2.5
5.0
0.2
100.0
NET LENDING
TOTAL
23.0
26.5
1.3
15.2
1,816.0
2,005.9
100.0
10.5
Source: General Appropriations Act 2013
56
Fiscal Outlook for 2013 Revenue outlook at 14.7% of GDP, Disbursements at 16.7% of GDP, Debt
Fiscal Outlook for 2013
Revenue outlook at 14.7% of GDP, Disbursements at 16.7% of GDP, Debt at 48% of GDP
Government consumption to register double digit growth due to expansion of the
Conditional Cash Transfer (CCT) program, routine maintenance of public infrastructure,
implementation of PAMANA, as well as the Expanded Government Internship Program.
Pantawid Pamilyang Pilipino Program of DSWD
Priority projects in health sector geared to attain the Millenium Development Goals
(MDGs), such as doctors to the barrios, expanded immunization, TB control programs
Creation of teaching positions to close the teacher gap
Peace building and development in conflict-affected areas
Growth in capital outlays of 35.7% to P413.2 billion (cash basis), or 3.5% of GDP, which
translates to increased allocations for:
DPWH infra projects
DA-NIA irrigation facilities
Farm-to-market roads
Infrastructure support to tourism, education (Basic Education Facilities Fund), and
health (Health Facilities Enhancement Program)
57
Sectoral Allocation of National Government Expenditures General Appropriations Act (in Php billion) 2012 GAA 2013 GAA
Sectoral Allocation of National Government Expenditures
General Appropriations Act
(in Php billion)
2012 GAA
2013 GAA
Social Services
89.5
87.2
4.5%
4.8%
320.3
Economic Services
347.3
17.6%
613.4
17.3%
699.4
33.8%
34.9%
Debt Burden
360.4
356.1
509.2
18.0%
19.6%
25.4%
439.0
24.2%
General Public Services
Defense
58
Regional Per Capita Allocation, FY 2013 Allocation Per Capita, 2012 Allocation Per Capita, 2013 in Php
Regional Per Capita Allocation, FY 2013
Allocation Per Capita, 2012
Allocation Per Capita, 2013
in Php
in Php
2013
Regionalized
Allocation Per Capita
Particulars
Budget
Population
Amount
In Php Billion
Rank
(in Php)
Total
996.23
99,240,310
10,038
NCR
131.22
12,194,394
10,761
2
Luzon
410.47
43,306,613
9,478
3
Visayas
194.88
20,114,242
9,689
2
Mindanao
259.66
23,625,061
10,990
1
59
Policy Thrusts and Other Plans/Projects for 2013 One-year validity of MOOE and CO appropriations to encourage
Policy Thrusts and Other Plans/Projects for 2013
One-year validity of MOOE and CO appropriations to encourage agencies to plan
ahead and to minimize the gap between fiscal program and the obligation budget.
Allowance of pre-procurement activities immediately after submission of the budget to
Congress to facilitate project implementation within the one-year validity period.
Adoption of DPWH as principal infrastructure agency of government to accelerate
completion of priority program targets in line with the Social Contract.
Program Budgeting Approach in the creation of the budget, where the basic idea is
that budget information and decision making should be structured according to the
objectives of the government.
60
Policy Thrusts and Other Plans/Projects for 2013 Implementation of the Results-Based Performance Management System (RBPMS) and
Policy Thrusts and Other Plans/Projects for 2013
Implementation of the Results-Based Performance Management System (RBPMS)
and the Performance-Based Bonus (PBB) to push for better planning, programming
and execution capacities in the agencies.
Rolling out technological innovations to speed up budget release and procurement
transaction, improve information flows and strengthen transparency and
accountability:
PhilGEPS ePayment facility
Electronic payment through ATM of monthly pension of retired uniformed
personnel
Cashless Purchase Card
National Payroll System
Electronic and mobile banking for CCT beneficiaries
– Single Treasury Account
61
Trade, Industry and Investments Secretary Gregory L. Domingo Department of Trade and Industry 62
Trade, Industry and Investments
Secretary Gregory L. Domingo
Department of Trade and Industry
62
Contents I. Enabling Business Environment for Global Competitiveness Improving PH Competitiveness Philippine Business Registry (PBR) Nationwide
Contents
I.
Enabling Business Environment for Global Competitiveness
Improving PH Competitiveness
Philippine Business Registry (PBR)
Nationwide Streamlining of Business Permits and Licensing Systems
(BPLS) Program in the PH
Conformance to International Standards
Industry Development and Promotion
II.
Improving Productivity
Double Exports: Move Up the Value Chain
Better Business Environment to Increase Investments
Sustainable Employment through MSME Development
III.
Ensuring Consumer Welfare and Protection
IV.
Outlook for 2013
V.
Policy Thrusts and Other Plans for 2013
VI.
Harnessing the Potential of Mindanao as a Viable Investment Proposition
63
Enabling Business Environment for Global Competitiveness Improving Philippine Competitiveness Jumped 10 notches to 65 th place
Enabling Business Environment for Global Competitiveness
Improving Philippine Competitiveness
Jumped 10 notches
to
65 th
place
in
the
WEF
Global
Competitiveness Report 2012-2013, one of
the
few
countries that improved drastically.
Climbed to 61 st from 77 th in the World Economic Freedom
report released by Canada’s Fraser Institute, ranking 2 nd only to
Singapore in the ASEAN.
Improved to 97 th from 107 th in The Heritage Foundation’s 2013 Index of Economic Freedom due to improvements on investment
freedomand freedom from corruption and legislative reforms that enhance entrepreneurial development.
Philippine Business Registry (PBR)
Business Permits & Licensing Systems (BPLS)
DTI and DILG set a unified form for permit and licensing in all cities &
municipalities and reduced the follow ing:
Steps to 5 or less
Launched on 27 Jan 2012, w ith President Aquino as
guest of honor
21,571 ow ners/clients registered in 2012
Enables online registration of business names (DTI);
allow s issuance/validation of BIR TIN, and Employer
Registration Nos. (ERN) w ith SSS, PhilHealth, Pag-
IBIG
Processing
time
to
10
days
(new
applications)
and
5
days
(renew als)
No. of signatories to 5 or less
To expand reforms to all 1,634 municipalities
Launched
PBR
Kiosk,
allow ing
SEC-registered
823
LGUs
have
undergone
BPLS process
re-engineering
as
of
companies to get SSS, PhilHealth and Pag-IBIG ERNs
Reduced processing time from 4-5 days to 45 minutes
December 2012
Conducted streamlining trainings to1,004 LGUs
Linked w ith BPLS of QC in Mar 2012. Connectivity of
Valenzuela City LGU completed in Oct 2012, aw aiting
Soft Launch. Other LGUs to follow
MOA signed by DTI, DILG and DOST tow ards BPLS Automation (e-
BPLS) to promote the use of ICT in business permitting processes
Business Name Registration System (BNRS)
Moving tow ards migrating PBR and BNRS in the cloud
computing environment in 2013
329,390 registrations for 2012
Reduced BN registration processing time from 4-8 hours to 15 minutes
64
Enabling Business Environment for Global Competitiveness Conformance to International Standards PH Delisted from the list of
Enabling Business Environment for Global Competitiveness
Conformance to International Standards
PH Delisted from the list of Notorious Markets in December 2012 after 6 years of being listed, putting the PH closer to
being removed from the US Trade Representative (USTR) Office’s Special 301 Watch List of economies with weak
intellectual property regimes thatcould face US trade sanctions.
Accreditation of Conformity Assessment Bodies. Accreditation is the independent evaluation of conformity assessment
bodies against recognized standards. In 2012, the Philippine Accreditation Office (PAO) accredited 23 testing and
calibration laboratories against ISO/IEC17025, conducted 101 surveillance visits to ensure corrective actions have been
implemented on nonconformities, held 63 special assessments, and conducted 5 office-based assessments and 31 witness
audits to ensure confidence in the conformityassessmentcertificates issued bycertification bodies.
Trade Remedy Measures and Trade Defense that impose safeguard measures to allow local industries to adjust to
competition. In 2012, DTI, through the Bureau of Import Services (BIS), investigated 8 trade remedy cases (for products
like steel angle bars, testliner boards, clear float glass, tinted float glass, newsprint, wheat flour, galvanized iron and pre-
painted galvanized iron) and monitored 9 trade defense cases of PH exporters facing trade remedy cases in foreign
markets.
Industry Development and Promotion
Crafted 17 Industry Roadmaps in 2012 in line with the formulation of a comprehensive national industrial policy that shall
spell outopportunities and promote the growth offorward & backward linkages in priorityand high-potential growth sectors
2012 Investment Priorities Plan. 13 preferred economic activities: Agriculture/Agribusiness and Fishery, Creative
Industries/Knowledge-based Services, Disaster Prevention, Mitigation & Recovery, Energy, Green Projects, Hospital and
Medical Services Projects, Infrastructure and PPP Projects, Iron & Steel, Mass Housing, Motor Vehicles, R&D, Shipbuilding
and Strategic Projects
65
Double Exports: Move Up the Value Chain Resilient, Strong and Effectively Diversified Exports PH’s 2012 Merchandise
Double Exports: Move Up the Value Chain
Resilient, Strong and Effectively Diversified Exports
PH’s 2012 Merchandise Export Performance Among Top
Performing :
Products and Markets Diversified
FY
2012 exports
expected to surpass
the
US$48.3 B
and
100%
US$51.5 B recorded in 2011 and 2010, respectively
Contributed to 11.3% growth of Gross International Reserves of
US$83.8 B in 2012 vis US$75.3 B in 2011
90%
80%
11
12
13
14
70%
17
19
20
21
16
60%
24
24
27
27
25
30
31
31
27
50%
29
22
40%
24
All Time High US$13 B Services Exports (Jan-Sep 2012) :
21
30%
Remarkable 14.8% grow th over Jan-Sep 2011
20%
10%
0%
Net Exports: Main Contributor to 2012 GDP growth
Improving Electronics with 13.33% y-o-y growth in November
Electronics (US$B)
Non-Electronics (US$B)
2012
Top Export Markets, 2002 and 2012 (Jan – Nov)
Robust growth of non-electronics exports continues, lessening
dependence on electronics-basedproducts
PH Export
Jan-Nov 2012
%
FY
%
Markets
(US$M)
Share
2002
Share
Machinery and transport inc. shipbuilding ↑86.09%, Auto parts
↑32%, Fruits and vegetables ↑17.5%, Seafood ↑17%
Products that exceeded US$2 B mark: food products w ith
US$2.61 B and ↑10.6%; construction materials, ↑24.24%
Coco Water sales 100.34% over the targeted exports sales
reaching US$120.41 M
TOTAL PH
48,026
100.00
35,208
100.00
9,168
19.09
5,295
15.04
1. Japan
6,893
14.35
8,683
24.66
2. USA
5,743
11.96
1,356
3.85
3. China
4,524
9.42
2,472
7.02
4. Singapore
4,395
9.15
2,359
6.70
5.
Hong Kong
Markets Shifting
2,602
5.42
1,339
3.80
6. South Korea
The shift is a result of the combined effects of increased
consumer incomes in the larger populations of developing Asia
economies w ith increasing middle income earners w ith evolving
tastes and preferences, as well as changes in the general global
2,258
4.70
1,083
3.08
7. Thailand
1,838
3.83
1,386
3.94
8. Germany
1,757
3.66
2,485
7.06
9. Taiwan
1,440
3.00
3,055
8.86
supply chain propelled by Free Trade Agreements (FTAs).
10. Netherlands
66
Double Exports: Move Up the Value Chain Aggressive Export Promotion Focused Strategic Promotional Activities resulted to
Double Exports: Move Up the Value Chain
Aggressive Export Promotion
Focused
Strategic
Promotional
Activities
resulted
to
Enhanced Market Access
over US$241 M incremental exportsales in 2012.
− Jumped to 72 nd from 92 nd (out of 132) in World
Economic
Forum’s
2012 Enabling Trade
2012 Export Promotion Activities
Report.PH ranks 14 th under Market Access.
Type of Activity
Number
Export
Companies
Trade
of
Sales
Assisted
Inquiries/
Spreading the benefits of FTAs through 116
Activities
(US$M)
Buyers
Doing Business in Free Trade Areas (DBFTA)
Signature Event
2
49.87 570
7,503
Sessions in 2012
(Manila FAME)
− Wider opportunities for 11,169 local business
Overseas Trade Fair
18
134.72
174
7,360
persons due to knowledge of preferential
trading arrangements made available by Free
Outbound Business
Matching
12
49.00
189
945
Trade Agreements (FTAs).
− PH utilization rate of ASEAN-Australia-New
Inbound Business
15
8.10
350
400
Zealand Free Trade Agreement (AANZFTA) up
Matching
76.1% in 2011 from 64.2% in 2010 and higher
Total
47
241.69 1,283
16,208
than that of the other ASEAN economies.
PH
has
existing
FTAs
with
the
In 2012, Philippine Trade and Investment Centers (PTICs)
ASEAN, Japan, Korea, China, India, Australia
overseas secured 1,069 new importers for PH products,
and New Zealand. FTAs give manufacturers of
served 2,729 export opportunities, assisted 10,853 PH
PH goods ready access and preferential tariff
exporters and businesses and sent919 buyers to the PH.
rates in the markets
of the country’s
trading
partners.
303 new export suppliers nationwide have been
identified through 20 hand holding sessions
under the
Regional Interactive Platform
for
Philippine
Exporters
(RIPPLES).
67
Better Business Environment to Increase Investments Increasing BOI-PEZA Approved Investments BOI-PEZA Approved Investments 2012 Performance Continue
Better Business Environment to Increase Investments
Increasing BOI-PEZA Approved Investments
BOI-PEZA Approved Investments
2012 Performance
Continue to grow from 2008-2012
Total BOI-PEZA approved investments
BOI-PEZA Approved Investments
amounted to PhP672.3 billion (US$15.9
(in PhP Billion)
billion), which is 2.3% higher than 2011.
134,489 jobs to be generated
Project Cost
Top 5 Sectors: Manufacturing;
Electricity, Gas, Steam & Air Conditioning
672.3
657.3
Supply; Real Estate Activities; Transportation &
Storage; and Accommodation & Food Service
Activities
506.5
443.1
Top 5 Foreign Sources:
Netherlands, Japan, US, Singapore and Korea
299.5
Big ticket projects from: Masinloc Power
Partners Co., Ltd.; Shell Gas and Energy
Philippines Corporation; Therma Visayas, Inc.;
Southwest Luzon Power Generation
Corporation; Philippine Long Distance Telephone
Company, Inc.; Semirara Mining Corporation;
2008
2009
2010
2011
2012
South Luzon Thermal Energy Corporation; SM
Prime Holdings, Inc.; Palm Concepcion Power
Corporation; and Toledo Power Company
68
Growing Investments All-time High Record of Inbound Investment Missions in 2012 Influx of foreign investor visits
Growing Investments
All-time High Record of Inbound Investment Missions in 2012
Influx of foreign investor visits to PH manifesting strong confidence on the domestic business climate
DTI through BOI, facilitated the inbound missions of 509 companies/organizations, which is 64% higher than 2011. Notable
is the 106% increase in the number of business delegations (multi-company) that visited the country (33 delegations from
16 in 2011).
Interest coming from non-traditional markets in Europe (i.e., Russia and Turkey); Middle East (i.e., Oman, Iran, Qatar,
Kuwait, Abu Dhabi); and Africa (i.e., Nigeria) is a positive development.
Many companies from various countries, such as Sweden, Hong Kong, Israel, Turkey have expressed interest in investing
in the country, covering various sectors such as telecommunications, BPO, manufacturing, agribusiness, aircraft,
electronics, among others.
Company-Directed Outbound Investment Missions to Strategic Markets
Resulted in meeting many companies that conducted subsequent inbound visits to the PH.
Conducted 15 company-directed outbound missions to the following countries: Singapore (3); Taiwan (2); Korea (2); Japan
(1); Hongkong (1); China (1); Malaysia (1); Australia (1); Italy (1); Middle East (1); and Cambodia (1).
PH as Preferred Investment Site
PH's improving cost competitiveness has made the country a preferred investment site.
Ten (10) foreign firms, with a combined estimate of PhP16.7 billion (US$0.40 billion) worth of investments, have
migrated to the country from neighboring Asian countries. Half of these new investments came from Japanese
investors. The migrant companies that have established operations in the country are:
1) Murata Manufacturing Co., Ltd.
6) New Kinpo/Cal-Comp Electronics
2) Luen Thai
7) Superi
3) Canon Business Machine (Phils.) Inc.
8) Fashion Focus
4) Charoen Pokphand Foods Philippines
9) Leader Electronics
5) Molex Integrated Products Philippines
10) Shang-hai Zephyr International
69
Sustainable Employment through MSME Development Assisted 5,894 microenterprises (MEs) in 2012 through MSME Sector Accomplishments 2012
Sustainable Employment through MSME Development
Assisted 5,894 microenterprises (MEs) in 2012 through
MSME Sector Accomplishments 2012
the Rural Microenterprise Promotion Program (RuMEPP)
bringing the total number of MEs served to 12,454 or 83%
Targets
Actual
of the targeted 15,000 for 2007-2013. The Program also
generated 7,373 jobs in 2012 increasing the cumulative
a.
No. of SMEs
accomplishmentto 58,960 jobs.
70,073
74,910
assisted
The
Access
of
Small
Enterprises
to
Sound
Lending
Opportunities (ASENSO), formerly known as the SME
b.
Jobs generated
508,975
577,553
Unified
Lending
Opportunities
for
National
Growth
c.
Sales
(SULONG)
released
PhP271.55
billion
to
MSMEs
translating to 3.87 million jobs since its inception in 2004.
Domestic
PhP 13.958 B
PhP 16.037 B
For the period Jan-Dec 2012 (preliminary), the program
released PhP29.34 billion to MSMEs and supported
• Exports
US$582.14 M
US$ 694.69 M
388,067 jobs
d.
Financing
Conducted
78
SME
Caravans
(training
sessions)
nationwide benefitting 18,749 participants
PhP 29.34 B
• ASENSO
-
Assisted
193
enterprises
graduating
to the market
(prelim)
readiness stage
• Micro-Enterprise
Developed
937
new
MSMEs
for
11,237
farmer
-
PhP 27.7 B
Lending
beneficiaries
through the DTI-Comprehensive Agrarian
Reform Program (DTI-CARP) (Jan-Dec)
e.
Investments
PhP 83.466 B
PhP 97.301 B
Generated
Assisted 799 Agrarian Reform Communities and 171 other
communities,
generating
PhP1,127
million
total
Source: DTI – Regional Operations and Development Group
investments,PhP2,409 million sales and 68,498 jobs
70
Sustainable Employment through MSME Development Created 1,427 new MSMEs and assisted 3,740 existing MSMEs through the
Sustainable Employment through MSME Development
Created 1,427 new MSMEs
and
assisted 3,740
existing MSMEs through the Nationwide Industry
Performance of NICCEP, 2012
Cluster
Capacity
Enhancement
Program
(NICCEP) since its launch in May 2012.
These
Investments
PhP 4.760 B
new MSMEs invested PhP4.760 billion, created
Jobs created
97,243
97,243 jobs and generated PhP5.499 billion
domestic sales and US$1.051 billion worth of
Domestic Sales
PhP 5.499 B
export sales.
Exports
Sales
US$ 1.051 B
NICCEP aims to enhance the capacity of selected
MSMEs Created
1,427
industry clusters throughout the country to
plan, implement, facilitate service delivery, evaluate
MSMEs Assisted
3,740
projects, and improve industry competitiveness and
No. of Trainings Conducted
479
improvement in the business environment.
-
(Industry
clusters:
No. of Beneficiaries Trained
10,777
abaca, bamboo, banana, cacao, coconut/coco
Amount of Loans Facilitated
PhP 167 M
coir,
coffee,
dairy,
fine
Source: DTI – Regional Operations and Development
Group
jewelry,
GDH,
calamansi,
meat
(fresh
and
processed),
metals
&
metalworks,
milkfish,
muscovado,
organic
fertilizer,
pangasius,
pineapple,
processed
food,
renewable
energy,
seaweed,
veggie
noodles, wearables & homestyles and wood)
71
Sustainable Employment through MSME Development Policy Thrusts and Plans/Projects for 2013 MSME Sector Performance vs. PDP
Sustainable Employment through MSME Development
Policy Thrusts and Plans/Projects for 2013
MSME Sector Performance vs. PDP Targets
Big Push for SMEs
PDP Targets by
MSME Sector
2016
Accomplishments
Adoption of a 3-year program
to promote and
2012
develop industry clusters
to make SMEs
in
the
industryand service sectors globallycompetitive.
a.
Merchandise Exports
US$ 91.5B
US$ 694.69 M
Components:
b.
Services Exports
US$ 28.9B
-
Product Development & Market Promotion
PhP 97.301 B
-
Equitable Financing/Credit Assistance
c.
Approved Investments
US$ 3,796.47B
(Investments
-
Shared Service Facilities
Generated)
-
Micro-enterprise Development
d.
Jobs Generated
Shared Service Facilities (SSF) Project
2013 Targets:
SMEs
2 M
577,553
-
1,000 Shared services facilities established
Source: DTI – Regional Operations and Development
Group
-
12,000 jobs (direct)
-
10,000 MSMEs assisted
Industry Cluster Development Targets, 2013
IndustryClusters
Generate investments amounting to PhP6.792 billion
SME Roving Academy
Create about203,666 jobs
Diskwento Caravan
Generate domestic sales ofPhP6.840 billion
OTOP Store Marketplace
Earn exports of US$448.0 million
Philippine Traceability for Revitalized Agricultural
Create about1,794 MSMEs and assist6,349 MSMEs
Competitiveness
Enhancement
(P-TRACE)
Conduct 572 trainings benefitting around 5,969
Program
MSMEs/individuals
72
Ensure Consumer Welfare and Protection Strengthened Enforcement Activities and Consumer Responsiveness DTI and DOTC signed Joint
Ensure Consumer Welfare and Protection
Strengthened Enforcement Activities and Consumer Responsiveness
DTI and DOTC signed Joint Administrative Order No. 1, Series of 2012 that enforces the Air
Passenger Bill of Rights to educate airline passengers on their rights, and provide a level playing
field among airline companies.
Supported launch of Harinang Pinoy, a flour to be used specifically for the production of Pinoy tasty
and Pinoy pan de sal. Use of Harinang Pinoy makes Pinoy Tasty P1/450gm cheaper than regular
brand, and Pinoy pan de sal P0.50/10 packs cheaper
170,765 consumers benefitted from 240 Diskwento Caravans nationwide in 2012, generating
PhP97.411M sales.
Intensified weekly price monitoring of basic necessities and prime commodities
Resolved 85% of consumer complaints in 2012 within the prescribed time of 7 working days for
complaints resolved through mediation and 20 working days for complaints resolved through
arbitration
Monitored 133,269 establishments for compliance to Fair Trade Laws in Jan-Nov 2012. Of
this, 431 were found not complying and 175 were penalized. Imposed fines accumulated to
PhP1,658,217.
DTI through the Philippine Shippers Bureau (PSB) revoked accreditation of an erring sea freight
forwarding company and issued public advisory against unaccredited freight forwarding companies.
4 LPG dealers received DoE- DTI Bagwis Award in March 2012
73
Ensure Consumer Welfare and Protection Strengthened Enforcement Activities and Consumer Responsiveness Issued 65 new PS license/certificates
Ensure Consumer Welfare and Protection
Strengthened Enforcement Activities and Consumer Responsiveness
Issued 65 new PS license/certificates issued and 1,600 Import Commodity Clearance (ICC)
certificates for critical consumer products, e.g., electronics, motorcycle helmets as of December 2012.
(preliminary report)
Regulation of Importation of Used Motor Vehicles. Issued 2,384 Certificates of Authority to Import
covering 15,751 units in 2012
Accredited 13 truck rebuilding centers in 2012
Launched Manual for the Investigation and Prosecution of Intellectual Property Cases
DTI Direct Call Center attended to 53,381 calls in 2012, the bulk of which or 46% were about business
name and 33% on consumer welfare concerns
DTI Public Assistance Desk (PAD) attended to 12,707 clients in 2012, 81% of which were about
business name and 10% on consumer welfare matters
57.25% ave. consumer welfare index in the Pulse Asia Survey 2012 showing high level of consumer
awareness towards basic consumer rights
74
Double Exports: Move Up the Value Chain Export Targets and Outlook Actual Targets 2011 2012 2012
Double Exports: Move Up the Value Chain
Export Targets and Outlook
Actual
Targets
2011
2012 2012
2013 2014
2015
2016
Value
Growth
US$B
GR
US$B
GR
US$B
GR
US$B
GR
US$B
GR
US$B
GR
(US$B)
Rate (%)
Total
48.30
-6.2
48.03
7.0
53.13 10
61.10
15
70.26
15
80.80
15
92.92
15
Merchandise
(Jan-Nov)
Total
15.45
9.6 13.04
14.8
17.77
15
20.43
15
22.48
10
24.72
10
27.20
10
Services
(Jan-Sep)
TOTAL
63.75
-1.69
61.06
9.5
70.90 11
81.53
15
92.74
14
105.52
14
120.12 14
EXPORTS
(Jan-Sep)
OUTLOOK FOR 2013
Bright prospects for electronics exports as new investments and expansions will operate in 2013
Exports to be boosted by investment-driven projects
Strengthening of the peso compels industries to improve competiveness in non-price dimensions such
as innovation and differentiation, branding and positioning, production processes and value-enhanced
after-sales service
Wider access of higher-valued Philippine products
and services to high growth economies
such as
East Asia, Brazil, Russia, India, Middle East, Turkey and South Africa
75
Investment Outlook for 2013 • Very positive outlook for 2013. The realization of investment projects of
Investment Outlook for 2013
• Very positive outlook for 2013. The realization of investment projects of many foreign investors
approved in 2012 is highly expected. These include projects in sectors such as manufacturing and
IT/BPO/Creative industries that thrive on the utilization of our skilled Filipino labor.
• Numerous investor queries and requests for assistance in the conduct of due diligence visits this
early part of the year are expected to increase the number of inbound missions. Foreign posts are
vigorously pursuing the conduct of inbound visits this year.
• To sustain growing investors’ confidence, promotion efforts to traditional markets (Japan, Korea,
Taiwan, China and US) will be intensified while strategically reaching out to developmental
markets with strong potential for outward investments (Russia, Brazil Middle East, among others).
• Implementation of the industry roadmaps will result in the conduct of more focused investment
promotion campaigns that will identify investment areas to complete the supply chain.
• Successful governance reforms will result in an investment climate that will provide a level playing
field and best value for the investor’s money.
76
Harnessing the Potentials of Mindanao A Viable Investment Proposition Development and promotion of industry clusters, such
Harnessing the Potentials of Mindanao
A Viable Investment Proposition
Development and promotion of industry clusters, such as:
Banana
Rubber
-
Davao region’s banana industry contributes about 75% of the total
-
exports of the region comprising.
Mango
The region also boasts of its Rubber Industry w hich produces
and exports natural rubber in Asia. It envisions the country as
one of the top 5 natural rubber producers in Asia by expanding
domestic and export market share by 25% in 5 years.
-
Fast grow ing industry in the Davao region w ith massive expansion
of mango farms and exports fresh and processed mangoes
Tuna
-
Coconut
-
The Cluster is diversifying coconut products to include food and
non-food dow nstream products, thereby strengthening the
region’s position as the top coconut producer in the country.
The industry aims not only to parade fresh and frozen tuna to
the local and foreign markets but hopes to maximize
business opportunities by adding more tuna value-added
enterprises in the region.
-
Seaweed
-
Expansion of seaw eed farms in potential areas in the region
With a revived access to the pockets of seas in the w estern
and central Pacific Ocean, stakeholders could deliver more
results to investment, employment and trade.
targeting small fisherfolks in the coastal areas
Tourism
Wood
-
-
The w ood industry involves the production of plantation species
for processing of construction materials, furniture and furnishings,
woodw orks, pallets and boxes, and handicrafts for domestic and
export markets.
The Cluster promotes economically viable, socially acceptable,
culturally sensitive and environmental-friendly tourism projects.
-
Mindanao’s w inding coastlines and its lush and verdant forests
could open the gates for ecotourism in the area, thereby
contributing to the country’s tourist arrivals.
Mining
ICT
-
Davao region has large amount of mineral deposits particularly
-
The industry is primarily driven by the grow th in the electronic
gold, silver and copper.
services
or
business
process
outsourcing which include
Palm Oil
software development, animation, contact centers and
-
A sunrise industry in the CARAGA region w ith big companies and
transcription.
individual grow ers now into oil palm production.
77
Harnessing the Potentials of Mindanao A Viable Investment Proposition Other Plans, Policies and Thrusts Strengthen direct
Harnessing the Potentials of Mindanao
A Viable Investment Proposition
Other Plans, Policies and Thrusts
Strengthen direct trade and investment link (e.g., BIMP-
EAGA Sub-Regional Cooperation)
Improve agricultural marketing-logistics system in Mindanao
(e.g., establishment of a Davao Food Terminal; Davao-Gensan
Export Corridor Strategy)
Promote business/enterprise development through Industry
Cluster & Value Chain Strategies w ith the objective of enhancing
the competitiveness of the priority industry clusters in Mindanao
Provide Shared Service Facilities (includes provision of the key
technology, skills and critical equipment and facilities)
Promote & strengthen the existing 6 Agri-industrial
Economic Zones (PEZA) in Mindanao and develop 3 others in
Bukidnon, Davao & South Cotabato to attract investments
Community-based
Enterprise
Development
to
be
purposively pursued
in
the
rural
areas
and barangays
in
Intensify promotion of Mindanao as Food Basket
collaboration with LGUs, DSWD, DOLE, DA and the LGUs.
Recommend policies for the development of Mindanao (e.g.,
EOs on the creation of industry development councils for banana,
rubber, cococoir, etc.)
Credit guarantee to facilitate and ensure SMEs’ access to
commercial sources of finance and capital;
Propose the creation of Mindanao Development Fund for
priority projects (off-grid mini hydro, etc.)
78
Agriculture Sector Secretary Proceso J. Alcala Department of Agriculture 79
Agriculture Sector
Secretary Proceso J. Alcala
Department of Agriculture
79
Contents I. Agriculture and Fisheries Performance II. Assessment of the Sector’s Performance vis-a-vis the Philippine Development
Contents
I.
Agriculture and Fisheries Performance
II.
Assessment of the Sector’s Performance vis-a-vis
the Philippine Development Plan Targets
III. FY 2012 DA Accomplishments
IV. Prospects for the Agriculture and Fisheries Sector in
2013
V.
FY 2013 DA Thrust and Priorities
VI. DA Thrust and Priorities for the Mindanao Region
80
Agriculture and Fisheries Performance January to December 2012, at constant 2000 prices The agriculture and fisheries
Agriculture and Fisheries Performance
January to December 2012, at constant 2000 prices
The agriculture and fisheries (A&F) sector posted a 2.74% GVA growth for 2012.
Gross Value Added in Agriculture and Fisheries, 2011-2012
Value
(million PhP) ≠≠≠≠ 4.26%
Crops Subsector
Palay:
8.05%
Corn:
6.27%
Pineapple:
7.06%
Rubber
:
4.60%
Coconut :
3.89%
Livestock Subsector*
Dairy:
≠ 12.16%
Hog:
1.71%
Poultry Subsector*
0.68%
Chicken:
≠ 4.61%
Duck Eggs:
≠ 5.52%
≠≠≠≠ 1.1% ≠≠≠≠ 4.59%
Chicken Eggs: ≠ 4.37%
Fisheries Subsector*
Aquaculture
≠ 2.85%
*output growths
Crops
Livestock
Poultry
Fisheries
Source: NSCB, January 2013
81
2012 A&F Sector Performance The A&F sector has managed to sustain modest growths for the past
2012 A&F Sector Performance
The A&F sector has managed to sustain modest growths for the past two years
PDP Chapter 4: 2012 Targets and Accomplishments
FY 2012
Accomplish-
Indicators
Targets
ments
1.
GVA increased (in %, at 2000 constant prices)
Agri & Fisheries Sector
4.3-5.3
2.74
Crops
4.9-5.9
4.26
Livestock
1.6-2.6
1.1
Poultry
4.2-5.2
4.6
Fisheries
-.0.7
2.
Rice Self-Sufficiency Ratio (%)
91
..
87
93.9*
3.
Stable Average Inflation Rates among Basic Food
3.0-5.0
2.2
Commodities (%)
*2011 Self-Sufficiency Ratio (SSR). 2012 SSR is yet to be released by BAS
The sector has registered a positive growth for the past two years. However, growths are below the plan
target of4.3-5.3%;
Fisheries subsector has experienced a decline due to rising cost of fuel and implementation of
conservation policies that drove down fish catch
The Food Staples Self-Sufficiency Program is on track, with the country producing record harvests of palay
(unmilled rice) at 18.03 million metric tons
Inflation rateson food for 2012 is down to 2.2%, with rates ranging only from 1.2% to 3.6%
82
FY 2012 DA Accomplishments DA Accomplishments for 2012 FY 2012 CY 2012 Major Final Outputs (MFO)/Indicators
FY 2012 DA Accomplishments
DA Accomplishments for 2012
FY 2012
CY 2012
Major Final Outputs (MFO)/Indicators
Percentage
Targets
Accomplishments
MFO 1.1 PRODUCTION SUPPORT SERVICES
Beneficiaries provided with production support
services (e.g. seeds, planting materials, animals,
fingerlings, etc)
Individuals
1,984,848
2,545,179
128.23
Groups
2,814
7,724
274.48
MFO 1.2 MARKET DEVELOPMENT SERVICES
Marketing agreements consummated
247 304
123.08
MFO 1.3 CREDIT FACILITATION SERVICES
Individuals or groups assisted to access either
credit, insurance, or guarantee
Individuals
32,981
31,103
94.31
Groups
202 186
92.08
83
FY 2012 DA Accomplishments DA Accomplishments for 2012 FY 2012 CY 2012 Major Final Outputs (MFO)/Indicators
FY 2012 DA Accomplishments
DA Accomplishments for 2012
FY 2012
CY 2012
Major Final Outputs (MFO)/Indicators
Percentage
Targets
Accomplishments
MFO 1.4 IRRIGATION DEVELOPMENT SERVICES
SSIPs installed and/or constructed
831 859
103.37
MFO 1.6 EXTENSION SUPPORT, EDUCATION, AND
TRAINING SERVICES
Training and training-related events conducted
53,401
57,752
108.15
MFO 2.0 REGULATIONS, DEVELOPED,
IMPLEMENTED, MONITORED, AND ENFORCED
Regulatory documents issued
2,199,638
2,596,494
118.04
Incidence of avian influenza and foot & mouth
diseases
0%
0%
100.00
Regulatory documents (national single window
system) issued at the prescribed time
80%
100%
125.00
84
FY 2012 DA Accomplishments DA Accomplishments for 2012 FY 2012 CY 2012 Major Final Outputs (MFO)/Indicators
FY 2012 DA Accomplishments
DA Accomplishments for 2012
FY 2012
CY 2012
Major Final Outputs (MFO)/Indicators
Percentage
Targets
Accomplishments
MFO 3.0 PLANS AND POLICIES DEVELOPED,
MONITORED, AND EVALUATED
Programs, and projects endorsed/approved
183
168
91.80
Plans distributed (e.g. FSSP and AFMP)
164
159
96.95
Agri and fishery policies issued
388
454
117.01
85
PDP Targets for 2013 Raise farmers and fishers incomes by 2% to 4% from 2012 level
PDP Targets for 2013
Raise farmers and fishers incomes by 2% to 4% from 2012 level
Achieve 100% rice self sufficiency by 2013
Increase agriculture and fisheries GVA growth by 4.3% - 5.3% from 2012 level
Increase the total value of agriculture exports by 10% from 2012 level
86
Pursuing the Goals of the Philippine Development Plan (PDP) 2011-2016 Towards a Competitive and Sustainable Agriculture
Pursuing the Goals of the
Philippine Development Plan (PDP) 2011-2016
Towards a Competitive and Sustainable
Agriculture and Fisheries Sector
1.
Improved food security and increased rural incomes;
2.
Increased sector resilience to climate change impacts; and
3.
Enhanced policy environment and governance.
87
Goal 1: Food security improved and incomes increased Philippine Food Staples Strategies: Sufficiency Program (FSSP) is
Goal 1: Food security improved and incomes increased
Philippine Food Staples
Strategies:
Sufficiency Program (FSSP) is
Frontload investments in irrigation, postharvest facilities and
geared towards the attainment of
mechanization
100% rice self-sufficiency by end of
Focus on longer-term investments
2013.
Engage farmers associations/irrigators associations, LGUs
and the private sector proactively
Increase cropping intensity
Ensure accessibility and affordability of other food staples to
encourage the production and consumption of rice alternatives
(demand management)
Access to affordable working capital (hybrid and certified) and
improved production technology
Increase NFA procurement as incentive to farmers
88
Goal 1: Food security improved and incomes increased Strategies: Corn Livestock and Poultry Promote the production
Goal 1: Food security improved and incomes increased
Strategies:
Corn
Livestock and Poultry
Promote the production of white corn and
Conservation and improvement of genetic
cassava to ease the demand on rice
materials
Development of the yellow corn industry
Disease prevention, control, and eradication
for animal feed and potential export
Establishment of postharvest facilities
markets
Explore and promote alternative nutrition
Encourage clustering approach to improve
technologies
productivity
Pursue possible export opportunities
89
Goal 1: Food security improved and incomes increased Strategies: High-Value Crops Fisheries Revitalize our traditional export
Goal 1: Food security improved and incomes increased
Strategies:
High-Value Crops
Fisheries
Revitalize our traditional export
Regenerate marine resources through Coastal
commodities (e.g. coconut, sugar, abaca,
Resource Management and Aqua-silviculture
banana, pineapple)
projects
Open new markets for fruits and
Protect marine resources through effective
vegetables including organic produce
enforcement of fishery laws
Establish production, postharvest and
Increase production through mariculture parks,
processing facilities
hatcheries, and nurseries
Conduct R & D activities
Conduct R & D activities along stages of the
value chain
Enhance food safety and product quality
monitoring and management
90
Goal 2: Increased sector resilience to climate change impacts Full integration of climate change (CC) adaptation
Goal 2: Increased sector resilience to climate change impacts
Full integration of climate change (CC) adaptation measures across all functions,
agencies, programs, plans of the DA.
Strategic Objectives:
1. To
increase
the
adaptive
capacity
and
productivity
potentials of agriculture and fisheries livelihood by modifying
commodity combinations to better meet weather issues and
natural resource endowments;
2. To redefine or remap the Strategic Agriculture and Fisheries
Development Zones (SAFDZ) by including climate change
vulnerabilities as part of mapping variables;
3. To
redefine
the
agriculture
development
planning
framework as a basis of agriculture development planning by
including key factors/variables associated with climate change;
4. To develop a new framework and plan for the provision of
“new” government agriculture services towards the
accelerated development of climate smart agriculture and
fisheries industries.
91
Goal 2: Increased sector resilience to climate change impacts DA Systems-Wide Climate Change Programs: Mainstreaming climate
Goal 2: Increased sector resilience to climate change impacts
DA Systems-Wide Climate Change Programs:
Mainstreaming climate change adaptation and
mitigation initiatives in agriculture (AMIA)
Climate Information System
Philippine Adaptation and Mitigation in
Agriculture Knowledge Toolbox
Climate-Smart Agriculture Infrastructure
Financing and Risk Transfer Instruments in
Climate Change
Climate-Smart Agriculture and Fisheries
Regulations
Climate-Smart Agriculture Extension System
92
Goal 3: Enhanced policy environment and governance Strategies: National Convergence Initiatives Harmonization of support services on
Goal 3: Enhanced policy environment and governance
Strategies:
National Convergence Initiatives
Harmonization of support services on the ground that should result in elimination of wasteful duplication,
better
quality
of
services
and
wider
coverage.
DA-DAR-DENR
DA-DPWH
DA-DSWD
cash-for-work in paddy
flood control and water
construction, irrigation canal
impounding for
desilting and coconut
irrigation
replanting and salt-making for
coconut fertilization
93
Core Public Investments Through good governance and political will, we shall continue to rationalize government support
Core Public Investments
Through good governance and political will, we shall continue to rationalize
government support and investments on the following priorities:
Irrigation
Farm-to-market roads, fish ports, postharvest facilities
and equipment
Trading Centers
Research and development
Regulatory and quarantine services
High-quality genetic materials
Crop, livestock and fisheries protection and disease
prevention programs
Avian-flu free and FMD-free without vaccination status
Soil and water conservation and management program
94
DA Thrusts and Priorities for the Mindanao Region Mindanao 2020: A&F Sector Goal: … A dynamic
DA Thrusts and Priorities for the Mindanao Region
Mindanao 2020:
A&F Sector Goal:
… A dynamic and sustainable agriculture and agribusiness
sector with world-class, socially and environmentally
responsible farms bringing about a progressive and
food-secure Mindanao…
In line with this, the DA will pursue interventions in
support to the Mindanao 2020 Strategies:
Improve
and
adopt
farming
and
processing
technologies for high value commercial crops, and aim
for more sustainable fishing industries
Further develop and promote the Halal industry
Improve investments in research, development, and
extension
Intensify
promotion
of
agriculture
and
fisheries
courses
95
Tourism Sector Secretary Ramon Jimenez, Jr. Department of Tourism 96
Tourism Sector
Secretary Ramon Jimenez, Jr.
Department of Tourism
96
Contents I. Awards and Citations II. Actual Performance vs. Target III. Marketing Initiatives for 2012 IV.
Contents
I.
Awards and Citations
II. Actual Performance vs. Target
III. Marketing Initiatives for 2012
IV. Highlights of Accomplishments
V.
Tourism Road Infrastructure Program
VI. Tourism Targets
97
Awards and Citations, 2012 Citations and Awards Organization PH – Top 12 Hottest Destinations in 2013
Awards and Citations, 2012
Citations and Awards
Organization
PH –
Top 12 Hottest Destinations in 2013
Conde Nast Traveller
PH – One of the 15 Hottest Travel Destinations of 2013
Travel+Leisure
PH – One
of
the 10 Best Regions to Travel in 2013
Lonely Planet
PH – One
of the Travel Destinations in 2013
Buceadores (Spanish Magazine)
Boracay – Top Destination for Relaxation Agoda.com
Boracay –
2012 Best Island in the World
Travel+Leisure
Boracay – Top Best Beach in Asia Trip Advisor
Tubbataha – CNN Travel’s 50 Best Dive Sites
CNN World
Palawan – No. 4 Holiday Destination in Asia
Smart Travel Asia
PH –
Best Diving Destination
Marine Diving Fair –
Tokyo
Gold Award for Creative Theme Development
Expo 2012 – Yeosu, Korea
Oriental Morning Post
PH - Best Outbound Tourist Destinations in China
(Consumer Poll)
98
International Visitor Arrivals Visitor Arrivals Arrivals by Year Growth Rate 4.3M 11.5% Korea 3.9M 4.5% USA
International Visitor Arrivals
Visitor Arrivals
Arrivals by Year
Growth
Rate
4.3M
11.5%
Korea
3.9M
4.5%
USA
3.5M
9.9%
Japan
China
3.1%
Taiwan
19.1%
2010
2011
2012
Australia
12.0%
Projected Arrivals
Singapore
7.6%
10.0M
Canada
5.3%
8.2M
Hong Kong
5.9%
6.8M
Malaysia
23.8%
5.5M
UK
8.4%
4.3M
3.5M
Germany
9.5%
0
500
1,000
1,500
2012
2011
2011
2012
2013
2014
2015
2016
Visitor arrivals In thousands
Actual
Projected
99
International Visitor Receipts Visitor Receipts (In US$ Million) Visitor Expenditure (In US$) 893.6 738.7 668.9 672.3
International Visitor Receipts
Visitor Receipts (In US$ Million)
Visitor Expenditure (In US$)
893.6
738.7
668.9
672.3
629.4
10,774.6
74.9
75.8
83.9
91.9 93.0
8,297.7
2008
2009
2010
2011
2012
6,391.4
CAGR == 5.2%
CAGR
5.2%
Average Daily Expenditure
Tourist Per Capita
4,864.0
Average Length of Stay (In Nights)
3,817.8
2,994.0
9.6
2,490.2
9.4
2,428.7 2,236.0
8.8
8.0
8.0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2008
2009
2010
2011
2012
CAGR = cumulative average growth rate
100
Domestic Travellers Top Overnight Destinations Domestic Travelers by Year (Partial as of June 2012) Metro Manila
Domestic Travellers
Top Overnight Destinations
Domestic Travelers by Year
(Partial as of June 2012)
Metro Manila
Boracay Island
Cebu City
Lapu Lapu City
Puerto Princesa City
Baguio City
Albay
Batangas
Cagayan de Oro City
Davao City
Bohol
Iloilo City
Clark
Negros Oriental
Total
Total
%%
40.7M
(in(in Mn)
Mn)
of total
of total
CAGR = 6.1%
37.5M
974.4
974.4
19.6%
19.6%
702.8
702.8
14.1%
14.1%
30.3M
613.3
613.3
12.3%
12.3%
25.0M
23.4M
396.3
396.3
8.0%
8.0%
359.3
359.3
7.2%
7.2%
2008
2009
2010
2011
2012
339.0
339.0
6.8%
6.8%
** Estimate
Estimate
290.8
290.8
5.9%
5.9%
281.2
281.2
5.7%
5.7%
Projected Domestic Travelers
200.1
200.1
4.0%
4.0%
56.1M
184.4
184.4
3.7%
3.7%
CAGR = 10.6%
51.7M
171.8
171.8
3.5%
3.5%
47.1M
44.7M
152.4
152.4
3.1%
3.1%
40.7M
151.5
151.5
3.0%
3.0%
37.5M
150.1
150.1
3.0%
3.0%
0
175
350
525
700
2011
2012
2013
2014
2015
2016
Domestic Travellers
Foreign Travellers
101
Room Capacity, 2012 New Accommodation Facilities in 2012 Available Number of Destinations Room Establishments Name Rooms
Room Capacity, 2012
New Accommodation Facilities in 2012
Available
Number of
Destinations
Room
Establishments
Name
Rooms
Fairmont Hotel and Raffles Suites
549
Northern PH
71,804
2,248
Quest Hotels
& Conference Ctr Cebu
427
NCR
31,790
320
Calyx Center – Cebu
221
Central Luzon
15,024
489
Bellevue Resort - Bohol
159
Other Regions
24,990
1,439
Tunes Hotel – Cebu
150
Central PH
61,978
3,220
Luxent Hotel – Quezon City
116
Dohera Hotel – Cebu
100
Western Visayas
15,200
635
Microtel Accropolis – Quezon City
84
Central Visayas
27,447
1,306
Other Regions
19,331
1,279
Hotel Expansion Program in Select Destinations
Additional
Southern PH
28,922
1,405
Name
Rooms
Northern Mindanao
8,113
380
Aklan (Boracay Island)
1,599
Southern Mindanao
9,613
404
Bohol (Panglao Island)
1,250
Other Regions
11,196
621
Metro Manila
1,123
Total PH
162,704
6,873
Cebu/ Lapu Lapu/ Mandaue
646
102
DOT Marketing Initiatives for 2012 Participated in over 50 major travel fairs around the world including
DOT Marketing Initiatives for 2012
Participated in over 50 major travel fairs around the world including Asia-Pacific, Europe, North
America and India and introduced “It’s More Fun in the Philippines”
Organized over 70 familiarization tours for travel agents and media to help generate a higher level
of awareness on the country
Tapped new source markets such as Indonesia and Thailand
Organized Philippine Tourism Sales Missions to provide a platform for business meetings between
Philippine delegates and their foreign counterparts
103
Highlights of 2012 Accomplishments Issuance of 14-day visa-free entry for Indian Nationals holding American, Japanese, Australian,
Highlights of 2012 Accomplishments
Issuance of 14-day visa-free entry for Indian Nationals holding American, Japanese, Australian,
Canadian, Singapore, Schengen, and British (AJACSSUK) visa
Approval by Congress of the bill eliminating the Common Carriers Tax
Designation of the following tourism enterprise zones which will generate investments and
employment: Ciudad de Victoria (Bulacan), Resorts World Manila Queen’s Castle
Implementation
of
the
media
plan for the Philippine Tourism Branding “It’s More Fun in the
Philippines”
Signing of convergence program with the Department of Public Works and Highways
104
Tourism Road Infrastructure Program DOT-DPWH Convergence Program In Million Pesos 14,000 12,000 12,000 10,000 7,920 8,000
Tourism Road Infrastructure Program
DOT-DPWH Convergence Program
In Million Pesos
14,000
12,000
12,000
10,000
7,920
8,000
6,000
4,000
1,390
2,000
0
2011
2012
2013
P12
billion
programmed
for
construction,
improvement,
rehabilitation,
widening of local roads leading to tourist destinations
105
Tourism Targets 2013 2014 2015 2016 International Visitors 5.5 6.8 8.2 10.0 (Million) Inbound Receipts 205.4
Tourism Targets
2013
2014
2015
2016
International Visitors
5.5
6.8
8.2
10.0
(Million)
Inbound Receipts
205.4
269.6
350.4
455.0
(Billionl Pesos)
Domestic Travelers
44.1
47.7
51.7
56.1
(Million)
Domestic Receipts
1,298.6
1,409.2
1,607.1
1,852.1
(Billion Pesos)
Total Visitor Receipts
1,504.0
1,679.1
1,957.5
2,307.1
(Bilion Pesos)
% Share to GDP
6.7
7.0
7.8
8.7
Tourism Employment
4.9
5.4
6.3
7.4
(Million)
% Share to National
13.0
14.2
16.2
18.8
Employment
106
Energy Sector Secretary Carlos Jericho L. Petilla Department of Energy 107
Energy Sector
Secretary Carlos Jericho L. Petilla
Department of Energy
107
Contents I. 2012 Accomplishments II. 2013 Policy Thrusts III. 2013 Outlook IV. Plans and Programs for
Contents
I.
2012 Accomplishments
II.
2013 Policy Thrusts
III.
2013 Outlook
IV. Plans and Programs for Mindanao
108
Primary Energy Supply Mix 2011 2012 * Biofuels Solar Wind 1% Biofuels Solar/Wind 0% 0% Natural
Primary Energy Supply Mix
2011
2012 *
Biofuels
Solar
Wind
1%
Biofuels
Solar/Wind
0%
0%
Natural Gas
1%
0%
7%
Hydro
Biomass
6%
12%
Oil
Oil
31%
Biomass
31%
Geothermal
12%
22%
Natural Gas
Geothermal
Hydro
8%
21%
Coal
6%
Coal
22%
20%
Consumed 40 million tons of oil equivalent
Consumed 42 million tons of oil equivalent
(MTOE) with:
(MTOE) with:
o
60% energy self-sufficiency
o
57% energy self-sufficiency
o
41% share of renewable energy (RE)
o
39% share of renewable energy (RE)
o
49% green energy (RE and natural gas)
o
47% green energy (RE and natural gas)
* preliminary
109
Household Electrification Provided 3,450 households (target beneficiaries) with electricity access under Household Electrification Program (HEP) Extended
Household Electrification
Provided 3,450 households (target beneficiaries) with electricity access under
Household Electrification Program (HEP)
Extended access to electricity to 6,257 sitios* (187,710 households) out of the
targeted 6,007 thru Sitio Electrification Program (SEP) .
Note:
110
A sitio is comprised of 30 households on the average
Power Industry Reforms Implementation of Targeted Power Industry Reforms Launched the Retail Competition and Open Access
Power Industry Reforms
Implementation of Targeted Power Industry Reforms
Launched the Retail Competition and Open Access (RCOA) for competitive
markets
• Transition period (26 December 2012 to 25 June 2013)
• Full commercial operation (26 June 2013)
Prepared Energy Roadmap for Mindanao
• Included the implementation of Interim Mindanao Electricity Market (IMEM)
NEDA Board approved Agus and Pulangi Rehabilitation Project
111
Renewable Energy (RE) Promoted the Use of Renewable Energy Resources RE Resource Awarded Contracts Capacity in
Renewable Energy (RE)
Promoted the Use of Renewable Energy Resources
RE Resource
Awarded Contracts
Capacity
in 2012
(in MW)
Biomass
7
44.26
Geothermal
8
1,176.68
Hydropower
53
1,002.740
Solar
27
272.26
Wind
6 70.00
TOTAL
101 2,565.94
112
Target Number of Vehicles on Alternative Fuels Promoted the Use of Alternative Fuels for Public Transport
Target Number of Vehicles on Alternative Fuels
Promoted the Use of Alternative Fuels for Public Transport
2012
Number of Vehicles
CNG Bus
61
Auto LPG
19,052
E-Vehicles
650
Biofuels Blending
Ethanol
10%
CME
2%
113
Energy Resource Development Oil and Gas Fifteen (15) prospective areas were offered in the 4 th
Energy Resource Development
Oil and Gas
Fifteen (15) prospective areas were offered in the
4 th Philippine Energy Contracting Round (PECR) for
oil and gas
Twenty (20) bid proposals were
received
for
11
target areas offered from local and international
players
There are existing 26 active service contracts (SCs)
of which 22 are operated by 18 foreign companies
Coal
Thirty-eight (38) prospective areas were offered in
the 4 th PECR
Received 69 proposals for 27 target areas offered
114
2013 Policy Thrusts Maintain 60% energy self-sufficiency Climate proof the energy system o Vulnerability assessment Promote
2013 Policy Thrusts
Maintain 60% energy self-sufficiency
Climate proof the energy system
o Vulnerability assessment
Promote low-carbon future
o Expand energy labeling program and move towards standardization
o Roll out of electric vehicles (EVs)
o 30% by 2030 (alternative fuels)
Promote and adopt smart technologies
Facilitate implementation of strategic infrastructure
Formulate Geographic Energy Plans
115
Outlook for 2013 Energize 9,860 households* through the HEP and 4,982 sitios under SEP 783.7 MW
Outlook for 2013
Energize 9,860 households* through the HEP and
4,982 sitios
under SEP
783.7 MW to go online
o
Luzon
-
737.7-MW
o
Visayas
-
8.0-MW
o
Mindanao
-
38.0-MW
Deploy 20,000 electric tricycles (E-trikes) from 2013-2014
Deploy 200 Compressed Natural Gas (CNG) buses
Need a minimum of PhP 49 Billion investment for infrastructure
Required Investment in the Energy Sector
(in Php Million)
2013
53,285.7
2014
280,733.7
2015
257,820.7
2016
182,098.4
Note:
* Using matured RE technologies such as PV SHS, PV streetlights and micro-hydro systems
116
Plans and Programs for Mindanao Establish Interim Mindanao Electricity Market (IMEM) Promote energy exploration and development
Plans and Programs for Mindanao
Establish
Interim
Mindanao
Electricity
Market (IMEM)
Promote
energy
exploration
and
development
o
Oil and Gas (areas in Mindanao offered
include
those
in
Sulu
Sea
and
CEPALCO’s 1-MW solar power plant in
Cagayan de Oro City
Cotabato)
Agus and Pulangi hydropower plants
(Lanao del Sur, Lanao del Norte, Iligan
o
Coal (areas in Mindanao offered include
City and Bukidnon)
Agusan
del
Norte,
Misamis
Oriental, Agusan del Sur, Surigao del
Sur,
Compostela
Valley,
Davao
Oriental, Lanao
del
Sur,
Lanao
del
Norte, South Cotabato, Sultan
Kudarat, Saranggani, Zamboanga del
Norte and Zamboanga Sibugay)
Completion of the Mindanao Energy Plan
(MEP) by third quarter of 2013
Mindanao I and II power plants in Mt.
Apo, North Cotabato
117
Plans and Programs for Mindanao Promote and develop RE potentials o Geothermal - 290-MW o Hydropower
Plans and Programs for Mindanao
Promote and develop RE potentials
o
Geothermal - 290-MW
o
Hydropower - 1,412.54-MW
o
Solar - 22-MW
o
Ocean - 24-MW
Explore opportunities for Liquefied Natural Gas (LNG)
o
World Bank (WB) study for a floating storage regasification unit (FSRU) in
Macajalar Bay, PHIVIDEC Industrial Authority in Tagoloan, Misamis Oriental
o
Petroleum National Brunei and PNOC forged an agreement for joint
implementation in Mindanao
Private Sector Initiated Power Projects
o
Committed additional capacity for Mindanao - 615.5-MW
o
Indicative additional capacity for Mindanao
- 527.0-MW
118
Transport and Flood Management Infrastructure Secretary Rogelio L. Singson Department of Public Works and Highways 119
Transport and Flood Management Infrastructure
Secretary Rogelio L. Singson
Department of Public Works and Highways
119
Contents I. Strategic Policies and Programs II. 2010-2016 Target Outcomes III. Public Private Partnership Program IV.
Contents
I.
Strategic Policies and Programs
II. 2010-2016 Target Outcomes
III. Public Private Partnership Program
IV. 2012 Performance Report
V.
2013 Budget/ Infrastructure Program
120
Survey of Enterprises on Sincerity in Fighting or Preventing Corruption in the Philippine Public Sector by
Survey of Enterprises on Sincerity in Fighting or Preventing
Corruption in the Philippine Public Sector
by Social Weather Stations (SWS)
Office of the President
Department of Public Works and Highways
2005
2006
2007
2008
2009
2012
2005
2006
2007
2008
2009
2012
+ 80
- 21
+ 10
- 3
- 15
- 27
- 55
- 37
- 63
- 65
- 66
- 66
121
Survey of Enterprises on Sincerity in Fighting or Preventing Corruption in the Philippine Public Sector by
Survey of Enterprises on Sincerity in Fighting or Preventing
Corruption in the Philippine Public Sector
by Social Weather Stations (SWS)
Department of Public Works and Highways
All Areas
NCR
ANG
CLB
ILO
CEB
DAV
CDO-I
- 8
- 20
- 21
- 24
- 30
- 30
- 32
- 36
- 52
- 56
- 65
- 70
- 71
- 71
122
The Global Competitiveness Report by World Economic Forum Quality of Roads 2010-2013 Ranking of the Philippines
The Global Competitiveness Report
by World Economic Forum
Quality of Roads
2010-2013
Ranking of the Philippines significantly improved from no. 114 (2010-2011) to no. 87 (2012-2013)
Legend: 1 = extremely underdeveloped; 7 = extensive and efficient by international standards (Based on 144 Countries)
123
Condition of Philippine Road Network Based on 2012 Road Condition Data Department of Public Works and
Condition of Philippine Road Network
Based on 2012 Road Condition Data
Department of Public Works and Highways
Legend
Basic Mandate
Road Classification
Plan, Design, Construct and Maintain National Roads and Bridges
National Arterial
National Secondary
and Flood Control Systems in Major and Principal Rivers
215,088 kms
Total Overall Road Network
31,598 kms
Total National Road Length
0.72
km/sq.
km
Road Density
0.26
km/sq.
km
Paved Road Density
0.27
Overall Paved Road Ratio
0.80
Paved Road Ratio for Nat’l. Roads
124
DPWH Strategic Policies and Programs Strategic Programs Key Reforms Good Governance Reform and Anti- Corruption Program
DPWH Strategic Policies and Programs
Strategic Programs
Key Reforms
Good Governance
Reform and Anti-
Corruption Program
Reforms in public works processes promoting right project, right cost, right quality,
and right-on-time implementation
Competitive and transparent bidding have resulted in P12 Billion savings.
Promotional examination for Asst District Engineers & up
Better Quality and
Safer National Roads
and Bridges Programs
Adopted new standards for concrete pavement thickness
Outsourced project inspection and quality assurance
Developed new construction design standards and specifications
Effective Flood Control
Program
River Basin Approach to Flood Management and Water Resource Utilization
Integrated Water Resource Management Approach in Coordination with DA, NIA,
DENR
Implement the Flood Management Master Plan for Metro Manila and surrounding
Areas
Strategic Convergence
Program
Support to designated Tourism Destinations based on the Tourism Master Plan
Support for access to major airports, seaports and RORO ports.
Prioritized CCT Beneficiaries for Labor Employment on DPWH Projects
Public Private
Partnership Program
Implement the High Standard Highway Master Plan for Metro Manila and 200km
radius which identified priority expressways and high standard highways
Develop long term road maintenance program for national roads and bridges
Implement PPP Bridge Program
Assist DepEd in developing PPP School Building Program
125
Key Results and Outcomes Plaridel By-Pass Project, Phase I (JICA PH-P236) Contract Package 1 Contract Package
Key Results and Outcomes
Plaridel By-Pass Project, Phase I (JICA PH-P236)
Contract Package 1
Contract Package 2
Date of Bidding
2008
July 2010
ABC
P1.447 Billion
P 706.5 Million
Total Amount as Bid
P 1.571 Billion (+)8.5% of
P 543.3 Million (-)23.1% of ABC, Savings: P163.2 M illion
ABC
Unit Cost
P85.8 Million/Km
P46.4 Million/Km
Length of Road
7.93 Kms
7.53 kms.
Original Implementation Schedule:
January 2009-May 2011 May 2011-February 2013
Actual Implementation Schedule:
January 2009-Nov. 2011
May 2011-Nov. 2012 (3 months ahead of schedule)
C-3 Road, G. Araneta Avenue/Quezon Avenue Interchange Project, Quezon City
Contractual Data
Date of Bidding
November 2010
ABC
P 534.6 Million
Total Amount as Bid
P 430.0
Million (-)19.6% of ABC
Savings: P 104.6 M illion (against ABC), P264 M illion (against the Allocation)
Scope of Work/Length:
Depressed roadw ay (underpass) - of 440 lineal meters (lm), 330 lm - approaches
Original Implementation Schedule:
June 2011-December 2012
Actual Implementation Schedule:
June 2011-September 2012 (3 months ahead of schedule)
126
DPWH 2010-2016 Target Outcomes Road Upgrading/Gravel to Paved, Km. National Arterial and Secondary Road (31,242 Km.)
DPWH 2010-2016 Target Outcomes
Road Upgrading/Gravel to Paved, Km.
National Arterial and Secondary Road (31,242 Km.)
Nationwide
NATIONAL ROAD 100% PAVED BY 2016
NATIONAL ROAD 100% PAVED BY 2016
* Excludes the on-going upgrading road projects.
127
DOT-DPWH Tourism Infrastructure Program 2011-2013 Tourism Infrastructure Program 2011-2016 Tourism Infrastructure Program Regional Breakdown (in Billion
DOT-DPWH Tourism Infrastructure Program
2011-2013 Tourism Infrastructure Program
2011-2016 Tourism Infrastructure Program
Regional Breakdown (in Billion Pesos)
(in Billion Pesos)
*
* Includes the P5 Billion additional released for 2012
128
Proposed High Standard Highway (HSH) Network in Metro Manila and its 200km Sphere ON-GOING CONSTRUCTION :
Proposed High Standard Highway (HSH) Network
in Metro Manila and its 200km Sphere
ON-GOING CONSTRUCTION : 92.15 KMKM
Project Name
Length (km)
Proj. Cost
Tarlac-Pangasinan-La Union Expressway
88.15 P 12.73
B
Daang Hari-SLEx Link
4.00 P 2.01
B
PROPOSED (PRIORITY): 235.72 KM
Project Name
Length (km)
Proj. Cost
NAIA Expressway
7.15
P 15.52 B
NLEx-SLEx Connector Road (MPTDC)
13.53
P 25.56 B
CALA Expressway (Cavite and Laguna
47.00
P 35.58 B
Side)
Central Luzon Link Expressway (CLLEx),
30.70
P 14.94 B
Phase I
Southern Tagalog Arterial Road (STAR),
19.74
P 1.96 B
Lipa City – Batangas City, Phase II
C-6 Expressway and Global Link (South
59.50
P 44.59 B
Section)
C-6 Extension (Flood Control Dike
42.60
P 42.38 B
Expressway)
Calamba-Los Baňos Expressway 15.50
P 10.38 B
129
Proposed HSH Network in Metro Cebu Highly Urbanized Area: Extension of Cebu Coastal Road up to
Proposed HSH Network in Metro Cebu
Highly Urbanized Area:
Extension of Cebu Coastal Road up to Liloan
Construction of Cebu Hillside Road and its Connector
Roads
Flyover construction along Cebu North Road, Cebu
South Roads and Coastal Road
Northern Area:
Widening of Cebu North Road
Construction of Cebu North Parallel Road
Southern Area:
Widening of Cebu South Road from Naga to Carcar
Construction of Cebu South Parallel Road
MactanIsland:
Improvement of Mactan Circumferential Road
Widening of First Mandaue-MactanBridge and its
Approach
Roads
Construction of 3 rd Bridge and its Approach Road
130
Proposed HSH Network in Tagum-Davao-Gen. Santos Corridor Inter-City Transport Axes Davao-Tagum Transport Axis together with Davao-
Proposed HSH Network in Tagum-Davao-Gen. Santos Corridor
Inter-City Transport Axes
Davao-Tagum Transport Axis together with
Davao-
Tagum Parallel Transport Axis is formed
Davao-Digos-General Santos Transport Axis
together with Davao-General Santos Parallel
Transport Axis
Davao-Cagayan De Oro Transport Axis
Inter-City Transport Axes
Davao City Diversion Road
Second Diversion Road to be formed
Mac Arthur Highway-E. Quirino Avenue
Quimpo Blvd.-Quezon Blvd.-Leon Garcia Avenue-
R. Castillo Avenue
C.M. Recto Avenue-J.P. Laurel Avenue
Ma-a Road
D. Quinones Road-Dacudao Avenue
General Santos City Circumferential Road
131
Master Plan for Flood Management in Metro Manila and Surrounding Areas Based on river basins: Pasig-Marikina
Master Plan for Flood Management in Metro Manila and Surrounding Areas
Based on river basins:
Pasig-Marikina River
Basin and Laguna Lake
19 km 2
Basin.
69 km 2
169 km 2
Total area: 4,354 km 2
Total Population: 17.1
635 km 2
M
72 km 2
15
km 2
95
km 2
Boundary of
Study Area and
the River Basins
3280 km 2
132
Three Major Flooding Occurrence: (1) Huge volume of water coming from Sierra Madre (2) Drainage capacity
Three Major Flooding
Occurrence:
(1) Huge volume of water
coming from Sierra
Madre
(2) Drainage capacity
constraints in core area
of Metro Manila
(3) Low lying communities
around Manila Bay &
Laguna Lake
133
Options for the Lakeshore Area from Taguig to Muntinlupa Option-1: Image of Lakeshore Dike Option-2: Image
Options for the Lakeshore Area from Taguig to Muntinlupa
Option-1: Image of Lakeshore Dike
Option-2: Image of Raising Lakeshore Land
with Road
with Road and Future Developments
134
DPWH Performance Report As of December 31, 2012 FY 2011 vs. FY 2012 Fund Utilization (in
DPWH Performance Report
As of December 31, 2012
FY 2011 vs. FY 2012 Fund Utilization
(in Billion Pesos)
135
DPWH Capital Outlays (Projects) Based on GAA FY 2012 vs. FY 2013 Budgets 2005 - 2013
DPWH Capital Outlays (Projects)
Based on GAA
FY 2012 vs. FY 2013 Budgets
2005 - 2013
(in Billion Pesos)
(in Billion Pesos)
+45%
Note: DPWH 2009 & 2010 Budget included P23 B & P26 B
“Pork Barrel”, respectively.
136
DPWH FY 2013 Capital Outlays (Projects) Based on GAA (In Billion Pesos) By Expenditure Type Flood
DPWH FY 2013 Capital Outlays (Projects)
Based on GAA (In Billion Pesos)
By Expenditure Type
Flood Control – 11%, P15.85 B
P 144.34 B
FS/PDE – 1%, P1.68 B
ROW, Contractual Obligations – 3%, P3.80 B
PPP – 2%, P3.00 B
Highways – 70%,
P100.93 B *
Basic Education Facilities – 10%, P14.11 B
Health Facilities – 2%, P2.79 B
Water Supply/VIILP/Disaster Related/Others-2%, P2.18 B
Regional Allocation
* The P100.9 Billion allocated for
Highways includes the P11.95
Billion for Tourism Infrastructure
Projects
137
Transport Infrastructure: Airports, Seaports and Mass Transport Systems Sec. Joseph Emilio Aguinaldo Abaya Department of Transportation
Transport Infrastructure:
Airports, Seaports and Mass Transport Systems
Sec. Joseph Emilio Aguinaldo Abaya
Department of Transportation and Communication
138
Contents I. Actual Performance vs. Target (2012) II. Performance in Other Key Areas III. Performance vs.
Contents
I.
Actual Performance vs. Target (2012)
II. Performance in Other Key Areas
III. Performance vs. Philippine Development Plan Targets
IV. Outlook for 2013
V.
Policy Thrusts and Other Plans/Projects for 2013
VI. Mindanao: Plans, Policy and Thrusts
139
I. Actual Performance vs. Target (2012) Major Final Output Result Policy/Plan Formulation 45 actual v. 41
I.
Actual Performance vs. Target (2012)
Major Final Output
Result
Policy/Plan Formulation
45 actual v. 41 planned
Transport policies/plans formulated and implemented to ensure safe,
reliable, responsive and viable transport services
Regulatory and Enforcement
Percentage of transport conveyances registered within the prescribed
standard processing time
Land Transportation Office
87% (actual) v. 85% (target)
Maritime Industry Authority
84% (actual) v. 70% (target)
Compliance with safety and security standards
(Philippine Coast Guard and Toll Regulatory Board)
100% (actual) v. 100% (target)
Operations and Management (MRT-3)
Reduce passenger unloading incidents due to train failure
292 (actual) v. 366 (target) incidents
Number of round trips for the year not to go below 80,000
81,052 roundtrips
Percentage increase in fareboxrevenues
12.24% (actual) v. 2.5% (target)
Infrastructure Development
Percentage of projects awarded within scheduled time
86% (actual) vs. 80.6% target
Percentage of savings derived from Approved Budget for Contract (ABC)
6.46% (actual) v. 5% target
over program amount
140
II. Performance in Other Key Areas New Measures Implemented Air Passenger Bill of Protects the rights
II. Performance in Other Key Areas
New Measures Implemented
Air Passenger Bill of
Protects the rights of passengers by outlining the
Rights (DOTC/DTI Joint
responsibilities of airlines to passengers:
Administrative Order
• Right to be provided with accurate information before
No. 1, s. 2012)
purchase
• Right to receive full value of the service purchased
• Right to compensation in cases of flight delay or
cancellation, lost, delayed or damaged baggage
Helmet Law (R.A. No.
Mandates the use of protective helmets for motorcycle
10054, s. 2011)
riders for their safety. Starting January 1, 2013, motorcycle
drivers without helmets bearing the ICC seal will be
apprehended and penalized.
141
III. 2012 Performance vs. Philippine Devt. Plan Targets PDP Target Supporting Projects 1. Establish an integrated
III. 2012 Performance vs. Philippine Devt. Plan Targets
PDP Target
Supporting Projects
1.
Establish an integrated and coordinated transport
Project Planning for the Integrated Transport System
network for passengers and cargo
(Intermodal Bus Terminal Facility)
Scoping activities for the Integrated Luzon Railways
Interconnect mass transport systems
(Luzon-wide Railway Project)
Keep mass transport convenient
Published for bidding the interoperable Automatic
Fare Collection System for transport systems
2.
Bolster tourism targets through the construction and
Puerto Princesa Airport concept design ongoing
reinforcement of transport infrastructure
Laguindingan Airport in final stages of construction
Airport Improvement projects published for bidding
Develop airports
(Butuan Airport, Cotabato Airport, Dipolog Airport,
Promote PPPs
PagadianAirport, Tacloban Airport)
PPP Projects published for bidding
(LRT1 Extension,
Mactan-Cebu Airport, interoperable Contactless
Automatic Fare Collection System for LRT and MRT)
142
IV. Outlook for 2013 CY 2013 Infrastructure Proposal Locally-Funded Airports and Navigational Facilities Projects Bicol International
IV. Outlook for 2013
CY 2013 Infrastructure Proposal
Locally-Funded
Airports and Navigational Facilities
Projects
Bicol International Airport Development Project
Ports
LRT Line 2 East Extension (to Masinag)
DOTC Road Transport IT Infrastructure Project
MRT 3 Operation and Maintenance (EDSA LRT III)
Subsidy for Mass Transport (MRT 3)
Transport Studies Fund
DOTC - Executive Management Information Systems
Project Development Funds for Public-Private Partnership Transport Infrastructure
Projects
MactanCebu Airport Expansion
Northern Integrated Bus Terminal System
Southern Integrated Bus Terminal System (2 terminals)
RORO Project
• Davao Sasa Port Project
143
IV. Outlook for 2013 CY 2013 Infrastructure Proposal Foreign Assisted Puerto Princesa Airport Development Project Projects
IV. Outlook for 2013
CY 2013 Infrastructure Proposal
Foreign Assisted
Puerto Princesa Airport Development Project
Projects
New Bohol (Panglao) Airport Development Project
Bus Rapid Transit (BRT) System for Cebu City
Maritime Disaster Response Helicopter Acquisition Project
Multi-Role Response Vessel Acquisition Project
LRT Line 1 Cavite Extension
144
V. 2013 Policy Thrusts and Other Plans/Projects 2013 Policy Thrusts and Other Plans/Projects Supporting Projects 1.
V. 2013 Policy Thrusts and Other Plans/Projects
2013 Policy Thrusts and Other Plans/Projects
Supporting Projects
1. Establish an integrated and coordinated transport
Additional commuter rail lines (e.g., LRT 1 Cavite
network for passengers and cargo
Extension, LRT 2 Masinag Extension, MRT 7)
Integrated Transport System (ITS) North and South
Make mass transport available from origin to
terminals
destination
Bus Rapid Transit (BRT) lines (e.g., Cebu, Ortigas,
Interconnect mass transport systems
Makati)
Keep mass transport convenient and cheap
Pasig Ferry System
Coordinate transport planning with land use and
Improvement of PNR commuter service
urban planning
Push for approval of the National Transport Policy
2. Bolster tourism targets through the construction
Night-rating of 8 airports (Tuguegarao, Busuanga, Roxas,
and reinforcement of transport infrastructure
Dumaguete, Dipolog, Ozamiz, Cotabato, and Butuan)
Airports than can accommodate more passengers
Develop airports
(including international) and larger aircraft (e.g.,
Laguindingan, Mactan Cebu, New Bohol)
Open secondary airports to international traffic
Privatization of operations and maintenance of airports
Improve access to airports
(e.g., Mactan-Cebu, New Bohol)
Promote PPPs
145
VI. Mindanao: Plans, Policy and Thrusts Mindanao: Plans, Policy and Thrusts Action Plan 1. Improve transportation
VI. Mindanao: Plans, Policy and Thrusts
Mindanao: Plans, Policy and Thrusts
Action Plan
1.
Improve transportation within and from
Mindanao to support growth of tourism,
agriculture and fishery sectors
Improve port connections with other islands
Complete studies for the improvement of cargo
movement and logistics (e.g., Davao Sasa Wharf)
Provide infrastructure and logistics support
Support domestic market access and
Revise regulatory and administrative requirements
to lower logistics costs
connectivity
Airport build out and modernization
146
Public-Private Partnership Program Executive Director Cosette V. Canilao Public-Private Partnership Center 147
Public-Private Partnership Program
Executive Director Cosette V. Canilao
Public-Private Partnership Center
147
Contents I. Actual Performance vs. Target II. Performance/ Accomplishments in Other Key Result Areas III. Outlook
Contents
I.
Actual Performance vs. Target
II.
Performance/ Accomplishments in Other Key Result Areas
III.
Outlook for 2013
IV. Policy Thrusts and Other Plans/ Projects for 2013
V.
Projects in Mindanao
148
PPP Targets vs. Actual Performance Eight Projects Targeted and Successfully Rolled-out in 2012 EST. COST PROJECT
PPP Targets vs. Actual Performance
Eight Projects Targeted and Successfully Rolled-out in 2012
EST. COST
PROJECT
PPP STRUCTURE
STATUS
(USD)
PPP for School Infrastructure
Build-Lease-Transfer
Awarded to Private Sector Partners; Indicative Start of
389M
Project Phase I
(BLT)
Construction on February 2013
Build-Transfer-
Bid submission on 26-Feb 2013; Indicative Start of
NAIA Expressway Phase II 368.84M
Operate (BTO)
Construction on December 2013
LRT Line 1 Cavite Extension
Contract-Add-Operate
Bid submission on 27-May 2013;
1.38B
and O&M
(CAO)
Indicative Start of Construction by mid 2014
Modernization of Philippine
Build-Operate-
Bid submission on 26-March 2013; Indicative Start of
132.56M
Orthopedic Center
Transfer (BOT)
Construction on November 2013
Rehabilitation, O&M of Angat
Submission of Prequalification (PQ) documents set on
Rehabilitate-Operate-
Hydro-Electric Powerplant
26.86M
4-March 2013; Indicative Start of Construction on
Transfer (ROT)
December 2013
Auxilliary Turbines 4 & 5
Automatic Fare Collection
Build-Own-Operate
PQ submission on 14-Feb 2013; Indicative Start of
41.86M
System
(BOO)
Installation on 4 th quarter of 2013
PPP for School Infrastructure
Build-Lease-Transfer
PQ submission on 12-Feb 2013;
312.86M
Project Phase II
(BLT)
Indicative Start of Construction on November 2013
Mactan Cebu International
Build-Rehabilitate-
PQ submission on 27-Feb 2013; Indicative Start of
Airport Passenger Terminal
239M
Operate-Transfer
Construction on 2 nd quarter 2014
Building
149
PPP Performance in Other Key Result Areas Capacity Development and Enhanced Legal and Regulatory Framework Capacity
PPP Performance in Other Key Result Areas
Capacity Development and Enhanced Legal and Regulatory Framework
Capacity Building for Implementing Agencies
Enhanced Legal and Regulatory Framework
and Local Government Units
Capacity Building Program composed of PPP
Amended Implementing Rules and
Core Courses, Knowledge Sharing Series and
Regulations of the BOT Law (Revised
Learning Series – capacitated Implementing
BOT Law IRR)
Agencies PPP Project Cycle and Processes
Issuance of Executive Order No. 78, or the
Launched PPP Manual for local government
Alternative Dispute Resolution
units (LGUs)
Extension of the BSP Circular No. 700 on
From 2011 todate, over 350 national agencies
Single Borrower's Limit
and local government units trained on basic
PPP concepts and project preparation
Policy Guidelines on Project
Identification, Selection, and Prioritization
150
Outlook for 2013 PPP Outlook for 2013 Seven projects on-going bidding and more projects in the
Outlook for 2013
PPP Outlook for 2013
Seven projects on-going bidding and more projects in the pipeline to be awarded this year
(e.g. NAIA Expressway Phase II, LRT Line 1 South Extension, Modernization of the
Philippine Orthopedic Center, Rehabilitation, O&M of Angat Hydro-Electric Powerplant
Auxilliary Turbines 4 & 5, Automated Fare Collection System, PPP for School Infrastructure
Project Phase II, Mactan-Cebu Intl. Airport New Passenger Terminal Building)
Sustaining the PPP momentum—systematic and coordinated pipeline development
Maintaining PPP Center’s balanced approach in project facilitation, and policy/regulatory
framework monitoring and improvement
Launching of the Knowledge Management (KM) Portal
Ensuring PPP Center’s staff sustainability
Efficient management of contingent liabilities with a growing PPP portfolio
Adequate monitoring and management of projects during development and delivery
151
Policy Thrusts and Other Projects for 2013 Policy Enhancements, Improving Capacities and PPP Projects for 2013
Policy Thrusts and Other Projects for 2013
Policy Enhancements, Improving Capacities and PPP Projects for 2013
Policy Enhancements
Improving Capacities
Amendments to the BOT Law (PPP
PPP Manual for national implementing
Law)
agencies, including government-owned
and controlled corporations
Amendments to Executive Order No. 8
o
Creation of the PPP Governing Board
Strengthen PPP enabling frameworks
o
PDMF to ensure effective monitoring
of PPP project implementation
Institutionalize PPP best practices
Policy Guidelines on Monitoring and
Establish long-term financing and risk
Evaluation of PPP Projects, and
guarantee mechanisms
Contract Management
Sector Guidelines for DepEd, DOH, and
DOTC PPP Projects
Policy Briefs on Value for Money, and
Optimizing PPP Center Interface with
Departments’ PPP Units
152