Good Governance Is Good Economics 2013 Feb

The Republic of the Philippines
Good Governance is Good Economics: Achieving Investment Grade
February 2013
Contents
I. Macroeconomic Performance and Outlook Real Sector ....................................... . Monetary, External and Financial . Fiscal Revenue Collection and Debt Management . Expenditure Management and Procurement Reforms Sectoral Performance and Outlook Trade, Industry and Investments .................................. .. Agriculture ... Tourism Infrastructure Energy Transport and Flood Management ........................... Airports, Seaports, and Mass Transport Systems ...................... Public-Private Partnership ...... Profiles of Speakers and Panel Discussants ..... Directory of Economic Agencies .. Investor Relations Office Brochure ..
3 19 32 46 62 79 96 107 119 138 147 157 175 177
II.
III. IV. V.
Real Sector
Secretary Arsenio M. Balisacan National Economic and Development Authority
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 8.0
7.8 6.6 6.2 5.0
6.0 4.0 2.0
1.2
0.0 -2.0 -4.0
2005
2006
2007
2008
2009
2010
2011
2012
China Philippines
Indonesia* Thailand
Viet Nam Singapore
Malaysia
Sources: ADB ARIC; official country websites *Indonesia: Reuters 2012 FY data for Thailand and Malaysia are not yet available
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 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 GDP growth rate Low-end target High-end target
*Phi l ippine Development Plan: 2011 2016 ta rgets
Philippines is commended for sound macroeconomic fundamentals

Low and stable inflation
9 8 7 % 6 5 4 3 2 % 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012
Favorable interest rates and sound banking system

20.0 15.0 % 10.0 5.0 0.0
NPL Ratio, LHS Real interest rates, LHS CAR, RHS
2005 2006 2007 2008 2009 2010 2011 2012

Headline Inflation Low Target High Target
Sustainable fiscal position

70.00 65.00 60.00 % 55.00 50.00 45.00 40.00 2005 2006 2007 2008 2009 2010 2011 2012 Q1-Q3 0.00 -0.50 -1.00 -1.50 -2.00 -2.50 -3.00 -3.50 -4.00 -4.50 -5.00 60.0 50.0 40.0 % 30.0 20.0 10.0 0.0
Strong external position

6.0 5.0 4.0 3.0 2.0 1.0 0.0 2005 2006 2007 2008 External Debt/GDP ratio, LHS * CA: Jan - Sept 2012; External Debt: as of Sept 2012 2009 2010 2011 2012* Current Account/GDP ratio, RHS %
NG Debt/GDP (LHS)
Fiscal Balance/GDP (RHS)
Improvement in governance and competitive indicators... ...with ratings moving in the right direction
WEF Competitiveness Rankings Philippines Credit Ratings
Source: Moodys, S&P and Fitch
Has growth been inclusive?

Self-rated poverty and severe hunger exhibit declining trend
Self-rated poverty
Hodrick-Prescott Filter (lambda=1600)
80 70 60 20 50 10 40 0 -10
Severe hunger
Hodrick-Prescott Filter (lambda=1600)
8
6 4 3 2 1 0 0 -1 -2 2
-20 10 20 30 POV 40 50 Trend 60 70 Cycle 80 90
-3 5 10 15 20 25 30 35 40 45 Cycle 50 55
S _HUNGER
Trend
Source: SWS Survey http://www.sws.org.ph/ind-pov.htm
Regional GDP, in % share to Philippine GDP (2009 2011)

But distribution of economic activity remains unequal
14.5%
14.1% 61.7% 12.5% 10.9%
14.1% 12.8% 62.4% 10.8%
12.6% 11.2%
62.5%
2009
2010
2011
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 for infrastructure and social spending
Revenue and Tax Efforts (% of GDP)
17.00 16.49 16.00 15.62 15.00 14.72 14.37 14.00 13.00 12.43 12.00 12.23 11.00 10.00 2005 2006 2007 2008 2009 2010 2011 2012 12.15 13.71 13.54 13.59 13.99 13.42 13.11 12.35 13.97 15.58
Revenue Effort*
*Q1 Q3 only
Tax Effort*
11
Ensure that no region is left behind

B A TA N ES
National Road Classification North-South Backbone

I LO C O S N O R T E A P AY A O C AG A Y AN
East-West Lateral Other Road of Strategic Importance

I SA B EL A Q U I RI N O
A B RA K A LI NG A I L OCOS S UR M T P RO V I N CE I F UG A O L A UN I O N B E NG U E T N U EV A VI Z CA Y A
Secondary National Road
PA N G A S I NAN A URORA 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 M A N I L A
RI Z AL
CAVI T E LA G U NA B AT A N G AS Q UEZ O N C A TA N D U AN E S C AM A R I N ES S U R C A MA R I N E S NO R T E
M A R I ND U Q UE AL BA Y M I N D O R O O R I E N T AL MI N D O R O O C C I DE N TA L S O RS O G O N
R O M B LO N M A SB A TE
NO R TH E R N S A M AR
S AM A R EA S T E RN S AM AR AK LA N C AP I Z B I LI RA N
A N T IQU E I L 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 OHO L PA L A W A 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 I N SURI G A O D EL S U R AG U S AN D E L N O R TE M I S AM I S O R I EN T AL AG U S A N DE L S U R
M I S A MIS OC C I D 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 LA N AO D E L S U R
ZA M B O A N G A S I B U G A Y ZA M B O A NG A D E L S UR 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 MA GU I N D A N AO
BA S I L AN
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 W I - TA W I
Source: DPWH
12
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 and employment (% )
37.0 36.0 13.5 13.0 10000.0 12.5 12.0 34.0 11.5 33.0 32.0 11.1 32.2 11.0 10.5 10.0 9.5 2005 2006 2007 2008 2009 2010 2011 2012 0.0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 4000.0 6000.0 Indonesia Malaysia Philippines Thailand Vietnam 31.0 2000.0 8000.0
Labour Productivity in Agriculture, Selected ASEAN Countries (1980-2011)

12000.0
35.0
30.0
Agri share in Employment by Sector, LHS employment, LHS
Agri share in GDP, RHS

Share to GDP, RHS
Source: FAOSTAT
14
Simplifying labor regulation and address skills mismatch
15
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
Transparency
17
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
Outline
I. II. III.
2012 Performance/Achievements 2013 Economic Outlook BSPs Policy Directions
20
Policy/reform milestone and their impact

Policy
Monetary Sector
Reduced policy interest rates by a cumulative of 100 basis points to 3.5 percent from 4.5 percent for the RRP (borrowing) rate and to 5.5 percent from 6.5 percent for the RP (lending) rate Implemented operational adjustments in reserve requirements (RR) policy and the Special Deposit Account (SDA) facility Maintained presence in foreign exchange market and built up GIR Sustained improvement of external debt management Adopted a number of macro prudential regulations, including the increase in capital charge for non-deliverable forwards (NDF) positions and prescribed a cap on NDF exposure of banks Further enhanced the governance standards of BSP-supervised financial institutions (FIs) through crafting regulations that would strengthen individual banking, as follows: Emphasized the need for FIs Boards of Directors to exercise objective judgments and ensure a stronger system of checks and balances; Instituted revisions to compliance programs of banks to better counter bank reputational risks that erode publics trust of the banks. Announced the adoption of Basel III capital adequacy rules for universal and commercial banks by 2014
Impact
Price stability and noninflationary growth
External Sector
Strong external position and stable exchange rate
Financial Sector
Efficient, sound, and competitive financial sector
21
Prudent monetary policy supported low inflation and robust output growth
Headline Inflation vs. Target Jan 2002 Dec 2012 2006=100, in percent
12 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Headline Lower Bound of Target Upper Bound of Target
Inflation environment continues to be favorable
Dec 2012 = 2.9% 2012 Ave = 3.2%
RRP Rate and Average Lending Rate Jan 2005 Dec 2012 RRP rate and Average lending rate in percent January 2005-Dec 2012, in percent
12 10 8 6
Dec12 = 5.7%
Low lending rate encourages investment and consumption
4 2 0 2005 2006 2007

RRP Rate
Dec12 = 3.5%
2008
2009
2010
2011
2012
Average Bank lending Rate
22
Strong external position despite the challenging external environment

Balance of Payments 2004 Dec 2012; in million US$
US$ million 10000 US$ million 20000
7.1b n
BOP position remains in surplus

15000 10000
5.8bn
8000 6000 4000 2000 0 2004 2005 2006 2007 2008 2009 2010 2011
Foreign exchange reserves continue to build-up External debt/GDP declines significantly

Total External Debt 2004 Q3 2012
5000 0 -5000
2012
CA (lhs)
BOP (rhs)
Gross International Reserves 2004 Dec 2012; in billion US$

US$ billion
90 80 70 60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011
months
83.8bn 12.0
US$ billion
14 12
65.0
%
80
61.7bn
60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 Q32012
10 60.0 8 655.0 4 2
50.0
25.6%
045.0 2012
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 Non-Performing Loans Coverage Ratio, 2002-Oct 2012
PHP bn
Quality of loan portfolio continues to improve
120 90 60 30 0 2002 2003 2004 2005 2006 2007 2008 2009 50.2 14.6 52.2 15.2 58.0 71.9 74.4 81.6 87.1 93.4
97.8
104.0
114.0
4500 3000 1500
13.4
10.8
7.8
5.0
4.1
3.7
3.6
2.8
2.6 0
2010 2011 Oct'12

NPL Coverage Ratio (LHS)
TLP, gross (RH S)
NPL Ratio ( LHS)
Capital Adequacy Ratio, Philippine Banking System, 2002-2011

20 %
Bank capitalization remains above regulatory standards and international norms
18 16 14 12 10 8 20 02 2 003 2004 2005 2006 2007 2008 2009 201 0

Tier 1
BSP Regulatory Requirement of 10% International Standard of 8%

2011 Mar '12
CAR, Solo
CAR, Consolidated
24
BSPs performance
2012 Actual 2012 Target/Forecast 3.0-5.0 percent
1. Prudent monetary policy 2. Robust external position
Inflation
3.2 percent
Balance of Payments (BOP) Gross International Reserves (GIR) External Debt-to-GDP ratio
US$9.2 billion (Jan-Dec 2012) US$83.8 billion (End-Dec 2012) 25.6 percent (Q3 2012) (End 2011: 26.9 percent) 18.0 percent (End-Mar 2012) (End 2011: 17.7 percent) 2.0 percent (End-Oct 2012) (End 2011: 2.4 percent)
US$6.8 billion
US$ 83.0 billion
Decreasing
3. Sound and stable financial system
Capital Adequacy Ratio (CAR), consolidated basis (UKBs) Non-Performing Loans (NPL) ratio (UKBs)
Increasing
Decreasing
25
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 BSPs 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 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.) 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. Worked toward a systematic collection of financial inclusion data for informed policymaking 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 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
Financial Education and Consumer Protection Data and Measurement
Financial Inclusion Advocacy
State of financial inclusion in the Philippines

Number of Banking Offices and ATMs, 2001-2011
Philippine banking systems 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 2011 Headline Inflation (%, 2006=100) Exports Growth (%) 1/ Imports Growth (%) 1/ OF Remittances 2/ Amount (US$ Bn) Growth Rate Current Account (US$ Bn) Balance of Payments (US$ Bn) GIR (US$ Bn)
a/ b/
Projections 2012 3.2 2013 3.0 5.0 a/ 10.0 a/ 12.0 a/ 22.2 b/ 5.0 b/ 4.9 b/ 3.0 b/ 86.0 b/
4.6 -6.4 2.1 20.1 7.2 7.0 10.2 75.3
7.9 (Jan-Sep) 2.2 (Jan-Sep) 19.4 (Jan-Nov) 6.0 7.2 (Jan-Sep) 9.2 (Jan-Dec) 83.8 r/
Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 28 November 2012 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 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
Explore further fine-tuning of monetary policy toolkit for the achievement of the BSPs mandate of maintaining price and financial stability Sharpen economic surveillance of shifts in the domestic and global inflation dynamics, including any brewing asset price pressures.
Financial sector
Continue to align local banking practices to international standards to make regulatory capital framework more risksensitive Strengthen further corporate governance framework and develop appropriate policies in support of improving bank operations and risk management Sustain its advocacies on microfinance, financial inclusion, consumer protection and financial education with greater vigor.
External sector
Maintain market-determined exchange rate Keep comfortable level of reserves Continue to promote external debt sustainability
31
Fiscal Sector : Revenue Collection and Debt Management
Secretary Cesar V. Purisima Department of Finance
32
Contents
I. National Government (NG) Fiscal Performance (January - November 2012)
II. Outlook for 2013 i. ii. NG Fiscal Program NG Financing Program
iii. NG Debt iv. General Government Debt v. Consolidated Public Sector Financial Position III. Policy Reforms and Plans/Projects for 2013
33
1st eleven months revenue collections at double digit growth

Jan - Nov 2011 2012 Actual Actual 1,249.8 1,105.0 849.5 243.0 12.5 144.1 72.2 71.8 0.7 1,346.0 (96.3) 1,408.6 1,247.0 969.3 264.3 13.3 153.3 80.0 73.2 8.3 1,535.9 (127.3)
(in Billion Pesos) Total Revenues Tax Revenues BIR BOC Other Offices Non-Tax Revenues o.w. BTr Income Fees & Charges Privatization Expenditure Surplus/(Deficit)
FY 2012 Program 1,560.6 1,427.4 1,066.1 347.1 14.2 131.2 61.8 69.4 2.0 1,839.7 (279.1)
Variance 158.8 142.0 119.8 21.4 0.8 9.2 7.7 1.4 7.6 189.8 (31.0)
% Growth 12.7% 12.9% 14.1% 8.8% 6.7% 6.4% 10.7% 2.0% 1034.5% 14.1% 32.3%
34
2013 Fiscal Program in line with medium term fiscal objectives

In Billion Pesos
Total Revenues Tax Revenues BIR BOC Other Offices Non-Tax Revenues o.w. BTr Income Fees and Charges Privatization Expenditure Surplus/(Deficit) % of GDP
2011 Actual
1,359.9 1,202.1 924.1 265.1 12.8 156.9 75.2 81.5 0.9 1,557.7 (197.8) -2.0%
2012 Emerging
1,518.4 1,351.4 1,046.0 291.4 14.0 158.7 82.8 75.9 8.3 1,753.7 (235.3) -2.2%
2013 BESF1
1,780.1 1,651.3 1,238.6 397.3 15.4 126.9 53.2 73.6 2.0 2,021.1 (241.0) -2.0%
Growth Rate (2013/2012)

15.0% 19.0% 19.9% 16.7% 1.5% -14.3% -30.3% 3.1% -75.9% 13.9% 6.6%
Source: Budget Expenditures and Sources of Financing (BESF) 2013, DBM 1 Cash basis
35
Assumptions for the 2013 Fiscal Program
2011 Actual Nominal GDP Growth (%) Real GDP Growth (%) Inflation (%) Interest Rate (%) Exchange Rate (P/$) Imports (% growth) Exports (% growth) Dubai Oil Price ($/barrel)
Source: BESF 2013, DBM 1 Data as of Nov 2012
2012 Actual 8.6 6.6 3.2 2.11 42.23 1.01 7.01 108.93
2013 Program BESF 11.5 6.0 3.0 5.0 3.0 42.00 12.0 10.0 90.00
8.1 3.9 4.8 2.4 43.30 9.5 -6.9 106.20
36
NG Financing program will continue to focus on increasing domestic source of funds

National Government Financing Program
%
100 84 80 60 40 20 0 2009 2010
Domestic
75 66 56 44 34 35 25 16 65
2011
Jan-Nov 2012
Foreign
2013 Program 1
Source: 1 BESF 2013, DBM
37
NG Debt to GDP ratio will continue to improve

National Government Debt-to-GDP
P Billion % of GDP 5,779.0
54.8
6,000.0
60.0
5,500.0
52.4
50.9
5,358.8 5,213.1
49.5 50.5 48.0
55.0
5,000.0 4,396.6
4,951.2
4,718.2
50.0
4,500.0
45.0
4,000.0 2009 2010 2011 2012

Program
40.0 2012
Actual Jan-Sep Program 1
2013
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 GDP
80
68.5 61.4
60
59.2 51.6
53.9
54.7
54.8
52.4
50.9
50.5
NG Debt 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
100.0 0.0 -100.0 -200.0 -300.0 -400.0 -500.0 2009 2010 2011 2012 Prog 2013 Prog -3.1 -4.0
-1.8
% of GDP
1.0 (241.4) (355.8) (178.7) (213.9)
(158.3)
0.0 -1.0
-1.3 -2.0
-2.0 -3.0 -4.0 -5.0
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

Under the Aquino administration
(as of January 17, 2013)
Run After Tax Evaders (RATE)

140 Cases filed Estimated tax liability of taxpayers : P44.27 Billion
BIR
Run After The Smugglers (RATS)

120 Cases filed Estimated tax liability of taxpayers : P52.55 Billion
BOC
Lifestyle check under the Revenue Integrity Protection Service (RIPS)
55 Cases filed (59 respondents) under the new administration DOF 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 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) 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
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
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
46
Contents
I.
Fiscal and Disbursement Performance (January-November 2012)
II. Progress in the Pursuit of Budget Reforms III. Progress in Reforms of Good Governance and Anti-Corruption IV. Fiscal Outlook for 2013 V. Policy Thrusts and Other Plans/Projects for 2013 VI. 2013 Budget for Mindanao
47
Revenue and Disbursement Performance, Jan-Nov 2012
year-on-year
% of full-year program
Revenues
P1,408.6 Bn
12.7 %
90.3 %
Disbursements
P1,535.9 Bn
14.1 %
83.5 %
Deficit
P127.3 Bn
32.3 %
45.6 %
48
Jan-Nov 2012 Disbursement Performance

2011 vs. 2012 Increase/(Decrease) Amount (Php bn) 158.8 189.8 131.1 46.9 75.2 (11.7) (10.0) 30.8 (0.3) 46.8 67.4 (11.2) (1.4) (7.9) 12.0 (31.0) % 12.7 14.1 11.6 10.4 49.7 (31.3) (4.8) 12.3 (0.9) 23.2 57.0 (90.5) (2.2) (100.0) 70.5 32.3
Particulars
Jan-Nov 2011 Jan-Nov 2012 (Php bn) (Php bn)
% of FY Program
REVENUES DISBURSEMENTS Current Operating Exp. PS MOOE Subsidy Allotm ent to LGUs Interest Paym ents Tax Expenditures Capital Outlays Infra & Other CO Equity Capital Transfers to LGUs CARP-LO Com pensation Net Lending SURPLUS/(DEFICIT)
1,249.8 1,346.0 1,127.1 449.2 151.3 37.3 210.4 251.5 27.4 201.9 118.2 12.4 63.4 7.9 17.0 (96.3)
1,408.6 1,535.9 1,258.2 496.1 226.5 25.6 200.4 282.3 27.1 248.7 185.6 1.2 62.0 29.0 (127.3)
90.3 83.5 87.2 84.7 89.0 80.7 91.7 88.9 79.3 66.5 62.2 56.3 86.9 126.0 45.6
49
Progress in the Pursuit of Budget Reforms
Objectives of Public Expenditure Management
PUBLIC EXPENDITURE MANAGEMENT
FISCAL DISCIPLINE
ALLOCATIVE EFFICIENCY
OPERATIONAL EFFECTIVENESS
SPENDING WITHIN MEANS
SPENDING ON THE RIGHT PRIORITIES
SPENDING WITH MAXIMUM IMPACT
50

Tighter Alignment of the Budget with Priorities 2010: Sustained use of Zero-Based Budgeting to identify and eliminate inefficient and ineffective programs and projects 2011: Alignment of the Budget with the five Key Result Areas (KRA) of President Aquinos 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

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

Public Financial Management Reform Roadmap 2012-2016
Output s: Results-Based Budgeting
Major Strategies:
Treasury Single Account
Govt Integrated Financial Mgt Info System
Better Mgt of Contingent Liabilities
1. Build-Up Credibility of PFM
2. Review Fund Release Procedures
3. Capacity Building for Congress & CSOs
4. Improve Treasury Cash Mgt Operations
5. Develop and Implement 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 Corruption Plan Framework
54
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) PARTICULARS 2012 Adjusted Prog 1,464.5 593.5 266.6 19.7 218.6 333.1 33.0 328.3 252.4 2.1 71.3 2.5 23.0 1,816.0 2013 1,599.0 640.6 312.9 42.9 241.8 333.9 26.9 380.4 297.1 2.0 76.3 5.0 26.5 2,005.9 % Share 2013 79.7 31.9 15.6 2.1 12.1 16.6 1.3 19.0 14.8 0.1 3.8 0.2 1.3 100.0 Growth (%) 9.2 7.9 17.4 117.7 10.6 0.2 -18.5 15.9 17.7 -3.7 7.0 100.0 15.2 10.5
CURRENT OPERATING EXPENDITURES Personal Services MOOE Subsidy Allotment to LGUs Interest Payments Tax Expenditure Fund CAPITAL OUTLAYS Infra. and Other CO Equity Capital Transfers to LGUs CARP LO Compensation NET LENDING TOTAL
Source: General Appropriations Act 2013
56
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
87.2 4.8% 320.3 17.6%
2013 GAA
89.5 4.5% 347.3 17.3%
Social Services Econom ic Services

699.4 34.9%
613.4 33.8%
Debt Burden General Public Services Defense
356.1 19.6% 439.0 24.2%
360.4 18.0%
509.2 25.4%
58
Regional Per Capita Allocation, FY 2013

Allocation Per Capita, 2012 Allocation Per Capita, 2013
in Php
2013 Regionalized Budget In Php Billion Total NCR Luzon Visayas Mindanao 996.23 131.22 410.47 194.88 259.66
in Php
Allocation Per Capita Population Amount (in Php) 99,240,310 12,194,394 43,306,613 20,114,242 23,625,061 10,038 10,761 9,478 9,689 10,990 Rank
Particulars
2 3 2 1
59
Policy Thrusts and Other Plans/Projects for 2013
One-year validity of MOOE and CO appropriations to encourage agencies to plan ahead and to minimize the gap between fiscal program and the obligation budget. Allowance of pre-procurement activities immediately after submission of the budget to Congress to facilitate project implementation within the one-year validity period. Adoption of DPWH as principal infrastructure agency of government to accelerate completion of priority program targets in line with the Social Contract. Program Budgeting Approach in the creation of the budget, where the basic idea is that budget information and decision making should be structured according to the objectives of the government.
60
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
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 65th place in the WEF Global Competitiveness Report 2012-2013, one of the few countries that improved drastically. Climbed to 61st from 77th in the World Economic Freedom report released by Canadas Fraser Institute, ranking 2nd only to Singapore in the ASEAN. Improved to 97th from 107th in The Heritage Foundations 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)

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, PagIBIG Launched PBR Kiosk, allow ing SEC-registered companies to get SSS, PhilHealth and Pag-IBIG ERNs Reduced processing time from 4-5 days to 45 minutes Linked w ith BPLS of QC in Mar 2012. Connectivity of Valenzuela City LGU completed in Oct 2012, aw aiting Soft Launch. Other LGUs to follow Moving tow ards migrating PBR and BNRS in the cloud computing environment in 2013
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 Processing time to 10 days (new applications) and 5 days (renew als) No. of signatories to 5 or less To expand reforms to all 1,634 municipalities 823 LGUs have undergone BPLS process re-engineering as of December 2012 Conducted streamlining trainings to1,004 LGUs MOA signed by DTI, DILG and DOST tow ards BPLS Automation (eBPLS) to promote the use of ICT in business permitting processes
Business Name Registration System (BNRS)

329,390 registrations for 2012 Reduced BN registration processing time from 4-8 hours to 15 minutes
64
Enabling Business Environment for Global 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) Offices Special 301 Watch List of economies with weak intellectual property regimes that could 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 conformityassessment certificates 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 prepainted 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 out opportunities and promote the growth of forward & 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
PHs 2012 Merchandise Export Perform ance Among Top Performing : FY 2012 exports expected to surpass the US$48.3 B and US$51.5 B recorded in 2011 and 2010, respectively Contributed to 11.3% growth of Gross International Reserves of US$83.8 B in 2012 vis US$75.3 B in 2011 All Tim e High US$13 B Services Exports (Jan-Sep 2012) : Remarkable 14.8% grow th over Jan-Sep 2011 Net Exports: Main Contributor to 2012 GDP grow th Im proving Electronics w ith 13.33% y-o-y growth in November 2012 Robust growth of non-electronics exports continues, lessening dependence on electronics-based products Machinery and transport inc. shipbuilding 86.09%, Auto parts 32%, Fruits and vegetables 17.5%, Seafood 17% Products that exceeded US$2 B mark: food products w ith US$2.61 B and 10.6%; construction materials, 24.24% Coco Water sales 100.34% over the targeted exports sales reaching US$120.41 M Markets Shifting The shift is a result of the combined effects of increased consumer incomes in the larger populations of developing Asia economies w ith increasing middle income earners w ith evolving tastes and preferences, as well as changes in the general global supply chain propelled by Free Trade Agreements (FTAs).
Products and Markets Diversified

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
11 24
12 24
13 27
14 27
17 30
19 31
21 29
16 22
20 31 25 24 27 21
Electronics (U S$B)
Non-Electronics (US$B)
Top Export Markets, 2002 and 2012 (Jan Nov)

PH Export Markets TOTAL PH 1. Japan 2. USA 3. China 4. Singapore 5. Hong Kong 6. South Korea 7. Thailand 8. Germany 9. Taiwan 10. Netherlands Jan-Nov 2012 (US$M) 48,026 9,168 6,893 5,743 4,524 4,395 2,602 2,258 1,838 1,757 1,440 % Share 100.00 19.09 14.35 11.96 9.42 9.15 5.42 4.70 3.83 3.66 3.00 FY 2002 35,208 5,295 8,683 1,356 2,472 2,359 1,339 1,083 1,386 2,485 3,055 % Share 100.00 15.04 24.66 3.85 7.02 6.70 3.80 3.08 3.94 7.06 8.86
66

Aggressive Export Promotion
Enhanced Market Access Jumped to 72nd from 92nd (out of 132) in World Economic Forums 2012 Enabling Trade Report. PH ranks 14th under Market Access. Spreading the benefits of FTAs through 116 Doing Business in Free Trade Areas (DBFTA) Sessions in 2012 Wider opportunities for 11,169 local business persons due to knowledge of preferential trading arrangements made available by Free Trade Agreements (FTAs). PH utilization rate of ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) up 76.1% in 2011 from 64.2% in 2010 and higher than that of the other ASEAN economies. PH has existing FTAs with the ASEAN, Japan, Korea, China, India, Australia and New Zealand. FTAs give manufacturers of PH goods ready access and preferential tariff rates in the markets of the countrys trading partners. Focused Strategic Promotional Activities resulted to over US$241 M incremental export sales in 2012.
2012 Export Promotion Activ ities Type of Activity Number of Activities 2 18 12 15 47 Export Sales (US$M) 49.87 134.72 49.00 8.10 241.69 Companies Assisted 570 174 189 350 1,283 Trade Inquiries/ Buyers 7,503 7,360 945 400 16,208
Signature Event (Manila FAME) Overseas Trade Fair Outbound Business Matching Inbound Business Matching Total
In 2012, Philippine Trade and Investment Centers (PTICs) overseas secured 1,069 new importers for PH products, served 2,729 export opportunities, assisted 10,853 PH exporters and businesses and sent 919 buyers to the PH. 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 Continue to grow from 2008-2012
BOI-PEZA Approved Investments (in PhP Billion)
2012 Performance Total BOI-PEZA approved investments amounted to PhP672.3 billion (US$15.9 billion), which is 2.3% higher than 2011. 134,489 jobs to be generated Top 5 Sectors: Manufacturing; Electricity, Gas, Steam & Air Conditioning Supply; Real Estate Activities; Transportation & Storage; and Accommodation & Food Service Activities Top 5 Foreign Sources: Netherlands, Japan, US, Singapore and Korea Big ticket projects from: Masinloc Power Partners Co., Ltd.; Shell Gas and Energy Philippines Corporation; Therma Visayas, Inc.; Southwest Luzon Power Generation Corporation; Philippine Long Distance Telephone Company, Inc.; Semirara Mining Corporation; South Luzon Thermal Energy Corporation; SM Prime Holdings, Inc.; Palm Concepcion Power Corporation; and Toledo Power Company
Project Cost
672.3
657.3 506.5 443.1 299.5
2008
2009
2010
2011
2012
68
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 the Rural Microenterprise Promotion Program (RuMEPP) bringing the total number of MEs served to 12,454 or 83% of the targeted 15,000 for 2007-2013. The Program also generated 7,373 jobs in 2012 increasing the cumulative accomplishment to 58,960 jobs. The Access of Small Enterprises to Sound Lending Opportunities (ASENSO), formerly known as the SME Unified Lending Opportunities for National Growth (SULONG) released PhP271.55 billion to MSMEs translating to 3.87 million jobs since its inception in 2004. For the period Jan-Dec 2012 (preliminary), the program released PhP29.34 billion to MSMEs and supported 388,067 jobs Conducted 78 SME Caravans (training nationwide benefitting 18,749 participants Assisted 193 enterprises readiness stage sessions)
MSME Sector Accomplishments 2012

Targets a. No. of SMEs assisted b. Jobs generated c. Sales Domestic Exports d. Financing ASENSO Micro-Enterprise Lending e. Investments Generated PhP 29.34 B (prelim) PhP 27.7 B PhP 97.301 B PhP 13.958 B US$582.14 M PhP 16.037 B US$ 694.69 M 70,073 508,975 Actual 74,910 577,553
graduating to the market
Developed 937 new MSMEs for 11,237 farmer beneficiaries through the DTI-Comprehensive Agrarian Reform Program (DTI-CARP) (Jan-Dec) Assisted 799 Agrarian Reform Communities and 171 other communities, generating PhP1,127 million total investments, PhP2,409 million sales and 68,498 jobs
PhP 83.466 B
Source: DTI Regional Operations and Development Group
70

Created 1,427 new MSMEs and assisted 3,740 existing MSMEs through the Nationwide Industry Cluster Capacity Enhancement Program (NICCEP) since its launch in May 2012. These new MSMEs invested PhP4.760 billion, created 97,243 jobs and generated PhP5.499 billion domestic sales and US$1.051 billion worth of export sales. NICCEP aims to enhance the capacity of selected industry clusters throughout the country to plan, implement, facilitate service delivery, evaluate projects, and improve industry competitiveness and improvement in the business environment. - (Industry clusters: abaca, bamboo, banana, cacao, coconut/coco coir, coffee, dairy, fine 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)
Performance of NICCEP, 2012

Investments Jobs created Domestic Sales Exports Sales MSMEs Crea ted MSMEs As s isted No. of Tra i nings Conducted No. of Beneficiaries Trained Amount of Loans Facilitated
Source: DTI Regional Operations and Developm ent Group
PhP 4.760 B 97,243 PhP 5.499 B US$ 1.051 B 1,427 3,740 479 10,777 PhP 167 M
71

Policy Thrusts and Plans/Projects for 2013 Big Push for SMEs Adoption of a 3-year program to promote and develop industry clusters to make SMEs in the industryand service sectors globallycompetitive. Components: - Product Development & Market Promotion - Equitable Financing/Credit Assistance - Shared Service Facilities - Micro-enterprise Development Shared Service Facilities (SSF) Project 2013 Targets: - 1,000 Shared services facilities established - 12,000 jobs (direct) - 10,000 MSMEs assisted IndustryClusters SME Roving Academy Diskwento Caravan OTOP Store Marketplace Philippine Traceability for Revitalized Agricultural Competitiveness Enhancement (P-TRACE) Program
MSME Sector Performance vs. PDP Targets

PDP Targets by 2016 a . Merchandise Exports b. Services Exports c. Approved Investments d. Jobs Generated SMEs 2M 577,553 US$ 91.5B US$ 28.9B US$ 3,796.47B US$ 694.69 M PhP 97.301 B (Investments Generated) MSME Sector Accomplishments 2012
Source: DTI Regional Operations and Developm ent Group
Industry Cluster Development Targets, 2013 Generate investments amounting to PhP6.792 billion Create about 203,666 jobs Generate domestic sales of PhP6.840 billion Earn exports of US$448.0 million Create about 1,794 MSMEs and assist 6,349 MSMEs Conduct 572 trainings benefitting around 5,969 MSMEs/individuals 72
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 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

Export Targets and Outlook
Actual 2011 Value (US$B) Total Merchandis e Total Services TOTAL EXPORTS 48.30 15.45 63.75 Growth Rate (%) -6.2 9.6 -1.69 2012 US$B 48.03
(Jan-Nov)
Targets 2012 GR 7.0 14.8 9.5 US$B 53.13 17.77 70.90 GR 10 15 11 2013 US$B 61.10 20.43 81.53 GR 15 15 15 2014 US$B 70.26 22.48 92.74 GR 15 10 14 2015 US$B 80.80 24.72 105.52 GR 15 10 14 2016 US$B 92.92 27.20 120.12 GR 15 10 14
13.04
(Jan-Sep)
61.06
(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 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 investors money.
76
Harnessing the Potentials of Mindanao

A Viable Investment Proposition
Development and promotion of industry clusters, such as:
Banana - Davao regions banana industry contributes about 75% of the total exports of the region comprising. Mango - Fast grow ing industry in the Davao region w ith massive expansion of mango farms and exports fresh and processed mangoes Coconut - The Cluster is diversifying coconut products to include food and non-food dow nstream products, thereby strengthening the regions position as the top coconut producer in the country. Seaw eed - Expansion of seaw eed farms in potential areas in the region targeting small fisherfolks in the coastal areas Wood - The w ood industry involves the production of plantation species for processing of construction materials, furniture and furnishings, woodw orks, pallets and boxes, and handicrafts for domestic and export markets. Mining - Davao region has large amount of mineral deposits particularly gold, silver and copper. Palm Oil - A sunrise industry in the CARAGA region w ith big companies and individual grow ers now into oil palm production. Rubber - The region also boasts of its Rubber Industry w hich produces and exports natural rubber in Asia. It envisions the country as one of the top 5 natural rubber producers in Asia by expanding domestic and export market share by 25% in 5 years. Tuna - The industry aims not only to parade fresh and frozen tuna to the local and foreign markets but hopes to maximize business opportunities by adding more tuna value-added enterprises 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. Tourism - The Cluster promotes economically viable, socially acceptable, culturally sensitive and environmental-friendly tourism projects. - Mindanaos w inding coastlines and its lush and verdant forests could open the gates for ecotourism in the area, thereby contributing to the countrys tourist arrivals. ICT - The industry is primarily driven by the grow th in the electronic services or business process outsourcing which include software development, animation, contact centers and transcription.
77
Harnessing the Potentials of Mindanao

A Viable Investment Proposition
Other Plans, Policies and Thrusts
Strengthen direct trade and investment link EAGA Sub-Regional Cooperation) (e.g., BIMP-
Improve agricultural marketing-logistics system in Mindanao (e.g., establishment of a Davao Food Terminal; Davao-Gensan Export Corridor Strategy) Prom ote 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 ) Prom ote & strengthen the existing 6 Agri-industrial Econom ic Zones (PEZA) in Mindanao and develop 3 others in Bukidnon, Davao & South Cotabato to attract investments Intensify prom otion of Mindanao as Food Basket Recommend policies for the development of Mindanao (e.g., EOs on the creation of industry development councils for banana, rubber, cococoir, etc.)
Community-based Enterprise Development to be purposively pursued in the rural areas and barangays in collaboration with LGUs, DSWD, DOLE, DA and the LGUs. 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
Contents
I.
Agriculture and Fisheries Performance
II. Assessment of the Sectors 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 (A&F) sector posted a 2.74% GVA growth for 2012.
Gross Value Added in Agriculture and Fisheries, 2011-2012
Value (million PhP)
Crops Subsector
4.26%
Palay: Corn: Pineapple: Rubber : Coconut : Dairy: Hog: Chicken: Duck Eggs:
8.05% 6.27% 7.06% 4.60% 3.89% 12.16% 1.71% 4.61% 5.52%
Livestock Subsector*
0.68% 1.1% 4.59%
Poultry Subsector*
Chicken Eggs: 4.37% Aquaculture 2.85%
Fisheries Subsector*
Crops
Livestock
Poultry
Fisheries
*output growths
Source: NSCB, January 2013
81
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 AccomplishIndicators 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 of 4.3-5.3%; Fisheries subsector has experienced a decline due to rising cost of fuel and implementation of conservation policies that drove down fish catch The Food Staples Self-Sufficiency Program is on track, with the country producing record harvests of palay (unmilled rice) at 18.03 million metric tons Inflation rates on 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
Major Final Outputs (MFO)/Indicators MFO 1.1 PRODUCTION SUPPORT SERVICES Beneficiaries provided with production support services (e.g. seeds, planting materials, animals, fingerlings, etc) Individuals Groups MFO 1.2 MARKET DEVELOPMENT SERVICES Marketing agreements consummated MFO 1.3 CREDIT FACILITATION SERVICES Individuals or groups assisted to access either credit, insurance, or guarantee Individuals Groups 32,981 202 31,103 186 94.31 92.08 FY 2012 Targets CY 2012 Accomplishments Percentage
1,984,848 2,814 247
2,545,179 7,724 304
128.23 274.48 123.08
83
Major Final Outputs (MFO)/Indicators MFO 1.4 IRRIGATION DEVELOPMENT SERVICES SSIPs installed and/or constructed MFO 1.6 EXTENSION SUPPORT, EDUCATION, AND TRAINING SERVICES Training and training-related events conducted MFO 2.0 REGULATIONS, DEVELOPED, IMPLEMENTED, MONITORED, AND ENFORCED Regulatory documents issued Incidence of avian influenza and foot & mouth diseases Regulatory documents (national single window system) issued at the prescribed time 2,199,638 0% 80% 2,596,494 0% 100% 118.04 100.00 125.00 53,401 57,752 108.15 FY 2012 Targets 831 CY 2012 Percentage Accomplishments 859 103.37
84
Major Final Outputs (MFO)/Indicators FY 2012 Targets CY 2012 Accomplishments Percentage
MFO 3.0 PLANS AND POLICIES DEVELOPED, MONITORED, AND EVALUATED Programs, and projects endorsed/approved Plans distributed (e.g. FSSP and AFMP) Agri and fishery policies issued 183 164 388 168 159 454 91.80 96.95 117.01
85
PDP Targets for 2013
Raise farmers and fishers incomes by 2% to 4% from 2012 level Achieve 100% rice self sufficiency by 2013 Increase agriculture and fisheries GVA growth by 4.3% - 5.3% from 2012 level Increase the total value of agriculture exports by 10% from 2012 level
86
Pursuing the Goals of the Philippine Development Plan (PDP) 2011-2016

Towards a Competitive and Sustainable Agriculture and Fisheries Sector
1. Improved food security and increased rural incomes; 2. Increased sector resilience to climate change impacts; and 3. Enhanced policy environment and governance.
87
Goal 1: Food security improved and incomes increased

Philippine Food Staples Sufficiency Program (FSSP) is geared towards the attainment of 100% rice self-sufficiency by end of 2013.
Strategies: Frontload investments in irrigation, postharvest facilities and mechanization Focus on longer-term investments Engage farmers associations/irrigators associations, LGUs and the private sector proactively Increase cropping intensity Ensure accessibility and affordability of other food staples to encourage the production and consumption of rice alternatives (demand management) Access to affordable working capital (hybrid and certified) and improved production technology Increase NFA procurement as incentive to farmers
88

Strategies: Corn
Promote the production of white corn and cassava to ease the demand on rice Development of the yellow corn industry for animal feed and potential export markets Encourage clustering approach to improve productivity
Livestock and Poultry

Conservation and improvement of genetic materials Disease prevention, control, and eradication Establishment of postharvest facilities Explore and promote alternative nutrition technologies Pursue possible export opportunities
89

Strategies: High-Value Crops
Revitalize our traditional export commodities (e.g. coconut, sugar, abaca, banana, pineapple) Open new markets for fruits and vegetables including organic produce Establish production, postharvest and processing facilities Conduct R & D activities
Fisheries
Regenerate marine resources through Coastal Resource Management and Aqua-silviculture projects Protect marine resources through effective enforcement of fishery laws Increase production through mariculture parks, hatcheries, and nurseries Conduct R & D activities along stages of the value chain Enhance food safety and product quality monitoring and management
90
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 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 the ground that should result in elimination of wasteful duplication, better quality of services and wider coverage.
DA-DAR-DENR
DA-DPWH
DA-DSWD
flood control and water impounding for irrigation
cash-for-work in paddy construction, irrigation canal desilting and coconut replanting and salt-making for coconut fertilization
93
Core Public Investments

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 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
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 PH Top 12 Hottest Destinations in 2013 PH One of the 15 Hottest Travel Destinations of 2013 PH One of the 10 Best Regions to Travel in 2013 PH One of the Travel Destinations in 2013 Boracay Top Destination for Relaxation Boracay 2012 Best Island in the World Boracay Top Best Beach in Asia Tubbataha CNN Travels 50 Best Dive Sites Palawan No. 4 Holiday Destination in Asia PH Best Diving Destination Gold Award for Creative Theme Development PH - Best Outbound Tourist Destinations in China Organization Conde Nast Traveller Travel+Leisure Lonely Planet Buceadores (Spanish Magazine) Agoda.com Travel+Leisure Trip Advisor CNN World Smart Travel Asia Marine Diving Fair Tokyo Expo 2012 Yeosu, Korea Oriental Morning Post (Consumer Poll)
98
International Visitor Arrivals

Visitor Arrivals Growth Ra te Arrivals by Year
4.3M 3.9M 3.5M
Korea USA Japan China Taiwan Australia Singapore Canada Hong Kong Malaysia UK Germany 0 500 2012 1,000 2011
11.5% 4.5% 9.9% 3.1% 19.1% 12.0% 7.6%

2010
2011
2012
Projected Arrivals
10.0M
5.3% 5.9% 23.8% 8.4% 9.5%

4.3M 3.5M 5.5M 8.2M 6.8M
1,500
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$)
893.6 629.4 668.9 672.3 738.7
10,774.6
74.9 75.8
2009
83.9
2010
91.9
2011
93.0
2012
8,297.7
2008
6,391.4
CAGR = 5.2%
2,994.0 2,428.7 2,236.0 2,490.2 3,817.8
4,864.0
Average Daily Expenditure
Tourist Per Capita
Average Length of Stay (In Nights)
9.4 8.8 8.0 8.0
9.6
20 08
2009
2010
2011
20 12
2013
2014 2015
2016
2008 2009 2010 2011 2012
CAGR = cumulative average growth rate
100
Domestic Travellers
Top Overnight Destinations Domestic Travelers by Year
Total (in Mn) Mn ) 974.4 702.8 613.3 396.3 359.3 339.0 290.8 281.2 200.1 184.4 171.8 152.4 151.5 150.1 % of total 19.6% 14.1% 12.3% 8.0% 7.2% 6.8% 5.9% 5.7% 4.0% 3.7% 3.5% 3.1% 3.0% 3.0%
37.5M 44.7M 40.7M
(Partial as of June 2012) Metro Manila Boracay Island Cebu City Lapu La pu City Puerto Princesa City Baguio City Albay Batangas Cagayan de Oro City Davao City Boho l Ilo ilo City Clark Negros Oriental 0 Domestic Travellers 175 350 525 700
CAGR = 6.1%
40.7M 37.5M
30.3M 23.4M 25.0M
2008
* Estimate
2009
2010
2011
2012
Projected Domestic Travelers

56.1M
CAGR = 10.6%
47.1M
51.7M
Foreign Tra vellers
2011
2012
2013
2014
2015
2016
101
Room Capacity, 2012

Destinations Northern PH NCR Central Luzon Other Regions Central PH Western Visayas Central Visayas Other Regions Southern PH Northern Mindanao Southern Mindanao Other Regions Total PH Available Room 71,804 31,790 15,024 24,990 61,978 15,200 27,447 19,331 28,922 8,113 9,613 11,196 162,704 Number of Establishments 2,248 320 489 1,439 3,220 635 1,306 1,279 1,405 380 404 621 6,873 New Accommodation Facilities in 2012 Name Fairmont Hotel and Raffles Suites Quest Hotels & Conference Ctr Cebu Calyx Center Cebu Bellevue Resort - Bohol Tunes Hotel Cebu Luxent Hotel Quezon City Dohera Hotel Cebu Microtel Accropolis Quezon City Rooms 549 427 221 159 150 116 100 84
Hotel Expansion Program in Select Destinations Name Aklan (Boracay Island) Bohol (Panglao Island) Metro Manila Cebu/ Lapu Lapu/ Mandaue Additional Rooms 1,599 1,250 1,123 646
102
DOT Marketing Initiatives for 2012
Participated in over 50 major travel fairs around the world including Asia-Pacific, Europe, North America and India and introduced Its More Fun in the Philippines Organized over 70 familiarization tours for travel agents and media to help generate a higher level of awareness on the country Tapped new source markets such as Indonesia and Thailand Organized Philippine Tourism Sales Missions to provide a platform for business meetings between Philippine delegates and their foreign counterparts
103
Highlights of 2012 Accomplishments
Issuance of 14-day visa-free entry for Indian Nationals holding American, Japanese, Australian, Canadian, Singapore, Schengen, and British (AJACSSUK) visa Approval by Congress of the bill eliminating the Common Carriers Tax Designation of the following tourism enterprise zones which will generate investments and employment: Ciudad de Victoria (Bulacan), Resorts World Manila Queens Castle Implementation of the media plan for the Philippine Tourism Branding Its 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 10,000 8,000 6,000 4,000 2,000 0 2011 2012 2013 1,390 7,920 12,000
P12 billion programmed for construction, improvement, rehabilitation, widening of local roads leading to tourist destinations
105
Tourism Targets
2013 International Visitors (Million) Inbound Receipts (Billionl Pesos) Domestic Travelers (Million) Domestic Receipts (Billion Pesos) Total Visitor Receipts (Bilion Pesos) % Share to GDP Tourism Employment (Million) % Share to National Employment 5.5 205.4 44.1 1,298.6 1,504.0 6.7 4.9 13.0
2014 6.8 269.6 47.7 1,409.2 1,679.1 7.0 5.4 14.2
2015 8.2 350.4 51.7 1,607.1 1,957.5 7.8 6.3 16.2
2016 10.0 455.0 56.1 1,852.1 2,307.1 8.7 7.4 18.8
106
Energy Sector
Secretary Carlos Jericho L. Petilla Department of Energy
107
Contents
I.
2012 Accomplishments
II. 2013 Policy Thrusts III. 2013 Outlook IV. Plans and Programs for Mindanao
108
Primary Energy Supply Mix

2011
Biofuels Wind Solar 1% 0% 0% Biomass 12% Geotherm al 22% Oil 31%
2012 *
Natural Gas 7% Biofuels 1% Hydro 6% Solar/Wind 0% Oil 31%
Biom ass 12%
Hydro 6%
Natural Gas 8% Coal 20%
Geothermal 21%
Coal 22%
Consumed 40 million tons of oil equivalent (MTOE) with: o 60% energy self-sufficiency o 41% share of renewable energy (RE) o 49% green energy (RE and natural gas)
* preliminary
Consumed 42 million tons of oil equivalent (MTOE) with: o 57% energy self-sufficiency o 39% share of renewable energy (RE) o 47% green energy (RE and natural gas)
109
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: A sitio is comprised of 30 households on the average
110
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 Biomass Geothermal Hydropower Solar Wind TOTAL Awarded Contracts in 2012 7 8 53 27 6 101 Capacity (in MW) 44.26 1,176.68 1,002.740 272.26 70.00 2,565.94
112
Target Number of Vehicles on Alternative Fuels

Promoted the Use of Alternative Fuels for Public Transport 2012 Number of Vehicles CNG Bus Auto LPG E-Vehicles Biofuels Blending Ethanol CME 10% 2% 61 19,052 650
113
Energy Resource Development
Oil and Gas Fifteen (15) prospective areas were offered in the 4th 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 4th PECR Received 69 proposals for 27 target areas offered
114
2013 Policy Thrusts

Maintain 60% energy self-sufficiency Climate proof the energy system o o o o Vulnerability assessment Expand energy labeling program and move towards standardization Roll out of electric vehicles (EVs) 30% by 2030 (alternative fuels) Promote low-carbon future
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 to go online o o o Luzon Visayas Mindanao 737.7-MW 8.0-MW 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 2014 2015 2016 53,285.7 280,733.7 257,820.7 182,098.4
116
Note: * Using matured RE technologies such as PV SHS, PV streetlights and micro-hydro systems
Plans and Programs for Mindanao

Establish Interim Mindanao Electricity Market (IMEM) Promote energy development o exploration and
Oil and Gas (areas in Mindanao offered include those in Sulu Sea and Cotabato) Coal (areas in Mindanao offered include 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)
CEPALCOs 1-MW solar power plant in Cagayan de Oro City
Agus and Pulangi hydropower plants (Lanao del Sur, Lanao del Norte, Iligan City and Bukidnon)
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 - 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
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 Social Weather Stations (SWS)
Office of the President
2005 2006 2007 2008 2009 2012 + 80
Department of Public Works and Highways

2005 2006 2007 2008 2009 2012
- 21 + 10 -3
- 15 - 27 - 37 - 66 - 66 - 55 - 63 - 65
121
Survey of Enterprises on Sincerity in Fighting or Preventing Corruption in the Philippine Public Sector
by Social Weather Stations (SWS)
All Areas NCR ANG CLB ILO CEB DAV CDO-I
-8 - 20 - 24 - 30 - 32 - 36 - 30
- 21
- 52 - 56 - 65 - 71 - 71 - 70
122
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
Legend Road Classification National Arterial National Secondary
Basic Mandate Plan, Design, Construct and Maintain National Roads and Bridges and Flood Control Systems in Major and Principal Rivers
215,088 kms 31,598 kms 0.72 km/sq. km 0.26 km/sq. km 0.27 0.80
Total Overall Road Network Total National Road Length Road Density Paved Road Density Overall Paved Road Ratio Paved Road Ratio for Natl. Roads
124
DPWH Strategic Policies and Programs

Strategic Programs Good Governance Reform and AntiCorruption Program Better Quality and Safer National Roads and Bridges Programs Effective Flood Control Program Key Reforms
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 Adopted new standards for concrete pavement thickness Outsourced project inspection and quality assurance Developed new construction design standards and specifications 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 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 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
Strategic Convergence Program Public Private Partnership Program
125
Key Results and Outcomes

Plaridel By-Pass Project, Phase I (JICA PH-P236) Contract Package 1
Date of Bidding ABC Total Am ount as Bid Unit Cost Length of Road Original Im plem entation Schedule: Actual Im plem entation Schedule: 2008 P1.447 Billion P 1.571 Billion (+)8.5% of ABC P85.8 Million/Km 7.93 Kms January 2009-May 2011 January 2009-Nov. 2011 July 2010 P 706.5 Million P 543.3 Million (-)23.1% of ABC, Savings: P163.2 M illion P46.4 Million/Km 7.53 kms. May 2011-February 2013 May 2011-Nov. 2012 (3 months ahead of schedule)
Contract Package 2
C-3 Road, G. Araneta Avenue/Quezon Avenue Interchange Project, Quezon City Contractual Data
Date of Bidding ABC Total Am ount as Bid Scope of Work/Length: Original Im plem entation Schedule: Actual Im plem entation Schedule: November 2010 P 534.6 Million P 430.0 Million (-)19.6% of ABC Savings: P 104.6 M illion (against ABC), P264 M illion (against the Allocation) Depressed roadw ay (underpass) - of 440 lineal meters (lm), 330 lm - approaches June 2011-December 2012 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.)
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
Regional Breakdown (in Billion Pesos)
2011-2016 Tourism Infrastructure Program

(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 : 92.15 KM
Project Nam e Tarlac-Pangasinan-La Union Expressw ay Daang Hari-SLEx Link Length (km) 88.15 4.00 Proj. Cost P 12.73 B P 2.01 B
PROPOSED (PRIORITY): 235.72 KM

Project Nam e NAIA Expressw ay NLEx-SLEx Connector Road (MPTDC) CALA Expressw ay (Cavite and Laguna Side) Central Luzon Link Expressway (CLLEx), Phase I Southern Tagalog Arterial Road (STAR), Lipa City Batangas City, Phase II C-6 Expressw ay and Global Link (South Section) C-6 Extension (Flood Control Dike Expressw ay) Calam ba-Los Baos Expressw ay Length (km) 7.15 13.53 47.00 30.70 19.74 59.50 42.60 15.50 Proj. Cost P 15.52 B P 25.56 B P 35.58 B P 14.94 B P 1.96 B P 44.59 B P 42.38 B P 10.38 B
129
Proposed HSH Network in Metro Cebu

Highly Urbanized Area: Extension of Cebu Coastal Road up to Liloan Construction of Cebu Hillside Road and its 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 Mactan Island: Improvement of Mactan Circumferential Road Widening of First Mandaue-Mactan Bridge and its Approach Roads Construction of 3rd 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 DavaoTagum 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 AvenueR. 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 River Basin and Laguna Lake Basin. Total area: 4,354 km2
635 km2
19 km2 169 km2 69 km2
Total Population: 17.1 M
72 km2 15 km2 95 km2
Boundary of Study Area and the River Basins

3280 km2
132
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 with Road
Option-2: Image of Raising Lakeshore Land with Road and Future Developments
134
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
2005 - 2013
(in Billion Pesos)
FY 2012 vs. FY 2013 Budgets

(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 Control 11%, P15.85 B FS/PDE 1%, P1.68 B ROW, Contractual Obligations 3%, P3.80 B PPP 2%, P3.00 B Highways 70%, P100.93 B *
P 144.34 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 and Communication
138
Contents
I. Actual Performance vs. Target (2012)
II. Performance in Other Key Areas III. Performance vs. Philippine Development Plan Targets IV. Outlook for 2013 V. Policy Thrusts and Other Plans/Projects for 2013 VI. Mindanao: Plans, Policy and Thrusts
139
I. Actual Performance vs. Target (2012)

Major Final Output
Policy/Plan Formulation 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 Maritime Industry Authority 87% (actual) v. 85% (target) 84% (actual) v. 70% (target) 100% (actual) v. 100% (target) 45 actual v. 41 planned
Result
Compliance with safety and security standards (Philippine Coast Guard and Toll Regulatory Board) Operations and Management (MRT-3) Reduce passenger unloading incidents due to train failure Number of round trips for the year not to go below 80,000 Percentage increase in fareboxrevenues Infrastructure Development Percentage of projects awarded within scheduled time Percentage of savings derived from Approved Budget for Contract (ABC) over program amount 86% (actual) vs. 80.6% target 6.46% (actual) v. 5% target 292 (actual) v. 366 (target) incidents 81,052 roundtrips 12.24% (actual) v. 2.5% (target)
140
II. Performance in Other Key Areas

New Measures Implemented Air Passenger Bill of Rights (DOTC/DTI Joint Administrative Order No. 1, s. 2012) Protects the rights of passengers by outlining the responsibilities of airlines to passengers: Right to be provided with accurate information before purchase Right to receive full value of the service purchased Right to compensation in cases of flight delay or cancellation, lost, delayed or damaged baggage
Helmet Law (R.A. No. 10054, s. 2011)
Mandates the use of protective helmets for motorcycle riders for their safety. Starting January 1, 2013, motorcycle drivers without helmets bearing the ICC seal will be apprehended and penalized.
141
III. 2012 Performance vs. Philippine Devt. Plan Targets

PDP Target
1. Establish an integrated and coordinated transport network for passengers and cargo Interconnect mass transport systems Keep mass transport convenient
Supporting Projects
Project Planning for the Integrated Transport System (Intermodal Bus Terminal Facility) Scoping activities for the Integrated Luzon Railways (Luzon-wide Railway Project) Published for bidding the interoperable Automatic Fare Collection System for transport systems Puerto Princesa Airport concept design ongoing Laguindingan Airport in final stages of construction Airport Improvement projects published for bidding (Butuan Airport, Cotabato Airport, Dipolog Airport, Pagadian Airport, Tacloban Airport) PPP Projects published for bidding (LRT1 Extension, Mactan-Cebu Airport, interoperable Contactless Automatic Fare Collection System for LRT and MRT)
2. Bolster tourism targets through the construction and reinforcement of transport infrastructure Develop airports Promote PPPs
142
IV. Outlook for 2013

CY 2013 Infrastructure Proposal Locally-Funded Projects
Airports and Navigational Facilities Bicol International Airport Development Project Ports LRT Line 2 East Extension (to Masinag) DOTC Road Transport IT Infrastructure Project MRT 3 Operation and Maintenance (EDSA LRT III) Subsidy for Mass Transport (MRT 3) Transport Studies Fund DOTC - Executive Management Information Systems Project Development Funds for Public-Private Partnership Transport Infrastructure Projects Mactan Cebu Airport Expansion Northern Integrated Bus Terminal System Southern Integrated Bus Terminal System (2 terminals) RORO Project Davao Sasa Port Project
143
IV. Outlook for 2013
CY 2013 Infrastructure Proposal Foreign Assisted Projects

Puerto Princesa Airport Development Project New Bohol (Panglao) Airport Development Project Bus Rapid Transit (BRT) System for Cebu City Maritime Disaster Response Helicopter Acquisition Project Multi-Role Response Vessel Acquisition Project LRT Line 1 Cavite Extension
144
V. 2013 Policy Thrusts and Other Plans/Projects

2013 Policy Thrusts and Other Plans/Projects 1. Establish an integrated and coordinated transport network for passengers and cargo Make mass transport available from origin to destination Interconnect mass transport systems Keep mass transport convenient and cheap Coordinate transport planning with land use and urban planning Push for approval of the National Transport Policy 2. Bolster tourism targets through the construction and reinforcement of transport infrastructure Develop airports Open secondary airports to international traffic Improve access to airports Promote PPPs Supporting Projects Additional commuter rail lines (e.g., LRT 1 Cavite Extension, LRT 2 Masinag Extension, MRT 7) Integrated Transport System (ITS) North and South terminals Bus Rapid Transit (BRT) lines (e.g., Cebu, Ortigas, Makati) Pasig Ferry System Improvement of PNR commuter service
Night-rating of 8 airports (Tuguegarao, Busuanga, Roxas, Dumaguete, Dipolog, Ozamiz, Cotabato, and Butuan) Airports than can accommodate more passengers (including international) and larger aircraft (e.g., Laguindingan, Mactan Cebu, New Bohol) Privatization of operations and maintenance of airports (e.g., Mactan-Cebu, New Bohol)
145
VI. Mindanao: Plans, Policy and Thrusts
Mindanao: Plans, Policy and Thrusts

1. Improve transportation within and from Mindanao to support growth of tourism, agriculture and fishery sectors Improve port connections with other islands Provide infrastructure and logistics support Support domestic market access and connectivity Airport build out and modernization
Action Plan
Complete studies for the improvement of cargo movement and logistics (e.g., Davao Sasa Wharf) Revise regulatory and administrative requirements to lower logistics costs
146
Public-Private Partnership Program
Executive Director Cosette V. Canilao Public-Private Partnership Center
147
Contents
I.
Actual Performance vs. Target
II. Performance/ Accomplishments in Other Key Result Areas III. Outlook for 2013 IV. Policy Thrusts and Other Plans/ Projects for 2013 V. Projects in Mindanao
148
PPP Targets vs. Actual Performance

Eight Projects Targeted and Successfully Rolled-out in 2012
PROJECT PPP for School Infrastructure Project Phase I NAIA Expressway Phase II LRT Line 1 Cavite Extension and O&M Modernization of Philippine Orthopedic Center Rehabilitation, O&M of Angat Hydro-Electric Powerplant Auxilliary Turbines 4 & 5 Automatic Fare Collection System PPP for School Infrastructure Project Phase II Mactan Cebu International Airport Passenger Terminal Building EST. COST (USD) 389M PPP STRUCTURE Build-Lease-Transfer (BLT) Build-TransferOperate (BTO) Contract-Add-Operate (CAO) Build-OperateTransfer (BOT) Rehabilitate-OperateTransfer (ROT) Build-Own-Operate (BOO) Build-Lease-Transfer (BLT) Build-RehabilitateOperate-Transfer STATUS Awarded to Private Sector Partners; Indicative Start of Construction on February 2013 Bid submission on 26-Feb 2013; Indicative Start of Construction on December 2013 Bid submission on 27-May 2013; Indicative Start of Construction by mid 2014 Bid submission on 26-March 2013; Indicative Start of Construction on November 2013 Submission of Prequalification (PQ) documents set on 4-March 2013; Indicative Start of Construction on December 2013 PQ submission on 14-Feb 2013; Indicative Start of Installation on 4th quarter of 2013 PQ submission on 12-Feb 2013; Indicative Start of Construction on November 2013 PQ submission on 27-Feb 2013; Indicative Start of Construction on 2nd quarter 2014
368.84M
1.38B
132.56M
26.86M
41.86M
312.86M
239M
149
PPP Performance in Other Key Result Areas

Capacity Development and Enhanced Legal and Regulatory Framework
Capacity Building for Implementing Agencies and Local Government Units Capacity Building Program composed of PPP Core Courses, Knowledge Sharing Series and Learning Series capacitated Implementing Agencies PPP Project Cycle and Processes Launched PPP Manual for local government units (LGUs) From 2011 todate, over 350 national agencies and local government units trained on basic PPP concepts and project preparation
Enhanced Legal and Regulatory Framework Amended Implementing Rules and Regulations of the BOT Law (Revised BOT Law IRR) Issuance of Executive Order No. 78, or the Alternative Dispute Resolution Extension of the BSP Circular No. 700 on Single Borrower's Limit Policy Guidelines on Project Identification, Selection, and Prioritization
150
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 momentumsystematic and coordinated pipeline development Maintaining PPP Centers balanced approach in project facilitation, and policy/regulatory framework monitoring and improvement Launching of the Knowledge Management (KM) Portal Ensuring PPP Centers 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 Enhancements Amendments to the BOT Law (PPP Law) Amendments to Executive Order No. 8 o Creation of the PPP Governing Board o PDMF to ensure effective monitoring of PPP project implementation Policy Guidelines on Monitoring and Evaluation of PPP Projects, and Contract Management Sector Guidelines for DepEd, DOH, and DOTC PPP Projects Policy Briefs on Value for Money, and Optimizing PPP Center Interface with Departments PPP Units
Improving Capacities PPP Manual for national implementing agencies, including government-owned and controlled corporations Strengthen PPP enabling frameworks Institutionalize PPP best practices Establish long-term financing and risk guarantee mechanisms
152
Policy Thrusts and Other Projects for 2013

Policy Enhancements, Improving Capacities and PPP Projects for 2013
PPP Projects in the Pipeline
NLEX-SLEX Connector Road Cavite-Laguna Expressway Civil Registration System Information Technology Project Phase II Vaccine Self-Sufficiency Project Phase II Talisay City Plaza Complex Heritage Restoration and Redevelopment Project Enhanced O&M Panglao Airport O&M of Laguindingan Airport Establishment of Cold Chain Systems Grains Central Project O&M of LRT Line 2 O&M of Puerto Princesa Airport New Centennial Water Supply Rehabilitation of Quirino Highway Project Integrated Transport System Project Bulacan Bulk Water Supply Project El Nido Water Supply and Sanitation System Project Regional Prison Facilities through PPP
Projects under development

Plaridel Bypass Toll Road Makati- Manila CCP Complex- Manila Bay City Area Mass Transit System Batangas-Manila (BatMan) 1 Natural Gas Pipeline Project PhilHealth Information Technology Project Tamugan Water Development Project Bus Rapid Transit (BRT) Ortigas Avenue Extension Bus Rapid Transit Quezon Avenue Espana C-6 Extension (Laguna de Bay Flood Control Dike Expressway Calamba Los Banos Toll Expressway Project Metro Cebu Expressway Project Tagum-Davao-General Santos High Standard Highway Central Luzon Link Expressway (CLLEX), Phase 2: Cabanatuan-San Jose Section Global City Mass Transit (Monorail System) Project Improvement/Modernization of Kennon Road Modernization of Region 1 Medical Center Project Socialized Housing Project Bayabas Small Reservoir Irrigation Project Operation and Maintenance of Clark Airport Manila Bay-Pasig River-Laguna Lake Ferry System C-6 Expressway (South-East, East, and North Sections) Manila Urban Renewal Project
Other Projects Being Monitored by PPP Center

Skyway Stage 3 MRT Line 7
153
6 2 5
7
Awarded Projects | Live Bidding (1) Daang Hari-SLEX Link Road Project (awarded) (2) PPP For School Infrastructure Project Phase I (3) LRT Line 1 South Extension (4) NAIA Expressway Phase II (5) Modernization of the Philippine Orthopedic Center (6) Rehabilitation, O&M of Angat Hydro-Electric Powerplant AuxilliaryTurbines 4 & 5 (7) Automated Fare Collection System (8) Mactan-Cebu Intl. Airport New Passenger Terminal Building (9) PPP for School Infrastructure Project Phase II
3 4
154
14 4
PPP Projects in the Pipeline 1. NLEX-SLEX Connector Road 2. Cavite-Laguna Expressway 3. Civil Registration System Information Technology Project Phase II 4. Vaccine Self-Sufficiency Project Phase II 5. Talisay City Plaza Complex Heritage Restoration and Redevelopment Project 6. Enhanced O&M Panglao Airport 7. O&M of Laguindingan Airport 8. Estab lishment of Cold Chain Systems 9. Grains Central Project 10.O&M of LRT Line 2 11.O&M of Puerto Princesa Airport 12.New Centennial Water Supply 13.Rehab ilitation of Quirino Highway Project 14.Integrated Transport System Project 15.Bulacan Bulk Water Supply Project 16.El Nido Water Supply and Sanitation System Project 17.Regional Prison Facilities through PPP
8 2
12
10 13 1 15 5
16
6 6
11
9 17
7
155
Projects covering areas in Mindanao
PPP for School Infrastructure Project (PSIP Phase II)

The PSIP Phase II involves the designing, financing, and constructing of around 10,679 one-storey and two-storey classrooms, including furniture, fixtures and toilets, in 5,033 public schools in 14 regions nationwide.
Operation and Maintenance of the Laguindingan Airport

Operation and maintenance of the newly constructed international-standard airport in Laguindingan, Misamis Oriental.
Grains Central Project

The project will establish grains bulk handling systems with corn grains processing centers and transshipment stations in major corn producing areas and selected sea ports by upgrading, expanding and enhancing the existing operations in at least fifteen (15) corn postharvest processing and trading centers.
156
Profiles of Speakers and Panel Discussants
157
Government of the Philippines

Amando M. Tetangco, Jr. BSP Governor and Chairman of the Monetary Board Bangko Sentral ng Pilipinas
Mr. Amando M. Tetangco, Jr. is the Governor of the Bangko Sentral ng Pilipinas (BSP). He was reappointed for a second term commencing 4 July 2011. As BSP Governor, he serves as Chairman of the Monetary Board, the BSPs principal monetary policy-making body. He is also the Chairman of the Anti-MoneyLaundering Council (AMLC). A career central banker, Governor Tetangco has been in the service of the BSP for more than three decades. Prior to his first appointment as Governor in July 2005, he was Deputy Governor in-charge of the Banking Services Sector, Economic Research and Treasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington, D.C. from 1992 to 1994. Governor Tetangco is involved in various organizations in the Philippines and overseas. Domestically, he is, among other positions held, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture Credit Policy Council, member of the Capital Markets Development Council (CMDC) and the Export Development Council (EDC). Overseas, he represents the country in ASEAN Central Bank Forum, Executive Meeting of East Asia and Pacific (EMEAP) Central Banks, South East Asia Central Banks (SEACEN), South East Asia, New Zealand and Australia (SEANZA), and Center for Latin American Monetary Studies (CEMLA). In addition, he is the Governor for the Philippines in the International Monetary Fund (IMF) and the Alternate Governor in the World Bank (WB) and in the Asian Development Bank (ADB). Governor Tetangco studied economics and business administration at the Ateneo de Manila University. He finished his MA in Public Policy and Administration with a concentration in Development Economics at the University of Wisconsin-Madison in the United States. He has attended various training programs at different institutions including the Harvard Business School. 158

Cesar V. Purisima Secretary Department of Finance
Mr. Cesar V. Purisima was appointed Finance Secretary by President Benigno S. Aquino III in June 2010. He als o briefly served as Finance Secretary in 2005 and as Trade and Industry Secretary in 2004. In October 2012, Secretary Purisima was named Finance Minister of the Year by Euromoney Magazine for his careful and successful stewardship of the local economy. In 2011, he was also recognized by Emerging Markets Magazine as the Finance Minister of the Year for Asia for his strong policy track record and steadfast commitment to maintaining economic stability. In addition, he w as Chairman of the Board of Governors for the 45th ADB Annual Meeting held in Manila last May 2012. His government servic e experience include serving as Chair of the Board of various government entities among them, the Land Bank of the Philippines, National Pow er Corporation, and Philippine Deposit Insurance Corporation; and as Member of the Monetary Board of Bangko Sentral ng Pilipinas. Secretary Purisima has had extensive work experience in public accounting both here and abroad. He was Area Managing Partner as head of the Asia Pacific Assurance Practic e of Andersen Worldw ide from 2001-2002, and was Regional Managing Partner as head of the ASEAN operation from 2000-2001. He was member of the Global Board of Andersen Worldw ide from 1999-2002 and the Global Executive Board of Ernst & Young from2002-2004. He w as als o Chairman and Managing Partner of SGV & Co until January 2004. Likew is e, he has been a member of various business organizations including the Management Association of the Philippines, Philippine Institute of Certif ied Public Accountants, Philippine-France Business Council, Philippine-Thailand Business Council and the Makati Business Club, among others. Secretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial Institutions from De La Salle University (1979) and his MBA from JL Kellogg Graduate School of Management, Northwestern University in Chicago, Illinois (1983). In 1979, he w as among the top placers in the Philippine Board Examinations for Certified Public Accountants.
159

Arsenio M. Balisacan Secretary National Economic and Development Authority
Dr. Arsenio M. Balisacan is Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority (NEDA). Prior to his appointment in NEDA, he was Dean and Professor of the University of the Philippines (UP) School of Economics and Executive Director of the Philippine Center for Economic Development. He has taught Development Economics, Agricultural and Resource Economics, and Economics of Poverty and Inequality. An Academician of the National Academy of Science and Technology and Adjunct Professor of the Australian National University, Secretary Balisacan is now on secondment from UP. He also served as Director-Chief Executive of the Southeast Asian Regional Centre for Graduate Study and Research in Agriculture (SEARCA), an intergovernmental organization, for six years (2003-2009) wherein he led SEARCA gain stature in the academic world and become a regional center of excellence for agriculture and rural development in Southeast Asia. In 2000-2001 and 2003, he was Undersecretary for Policy, Planning and Research of the Department of Agriculture (DA). As Undersecretary of DA, he was the countrys chief negotiator in the Agriculture Negotiations of the World Trade Organization (WTO) and in various bilateral agriculture negotiations. Before joining the UP faculty in 1987, he wasa Research Fellow at the East West Center in Honolulu and Economist at the World Bank in Washington, D.C. A recognized expert in Asia on poverty, food security, agricultural and rural development, human development, impact asse ssment, and governance issues, he served as adviser to public chief executives and legislators, non-government organizations, and multilateral development institutions such as the World bank (WB), Asian Development Bank (ADB), various United Nations (UN) agencies and the Australian Centre for International Agricultural Research (ACIAR). He has led leadership positions in professional associations. He served as President of the Philippine Economic Society in 2006, President of the Human Development Network in 2003-2009, Founding Secretary-General of the Asia-Pacific Agricultural Policy Forum in 2003-2006, and Executive Secretary of the Southeast Asian University Consortium for Graduate Education in Agriculture and Natural Resources in 2003-2009. Currently, he is President of the Asian Society of Agricultural Economists. Dr. Balisacan holds a PhD in Economics from the University of Hawaii, an MS degree in Agricultural Economics from the University of the Philippines Los Baosand a BS degree in Agriculture (magna cumlaude) from Mariano Marcos State University.
160
Florencio B. Abad Secretary Department of Budget and Management
Mr. Florencio B. Abad was appointed by President Benigno Aquino III as Secretary of Budget and Management in July 2010. He also served as Secretary of Agrarian Reform during the late President Corazon Aquinos administration and served as Secretary of Education under the Arroyo administration. He was elected member of the House of Representatives in 1987 representing the Lone District of Batanes. He was subsequently re-elected in 1995, 1998 and 2001. He became president of the Liberal Party of the Philippines from 1999 to 2004 and is currently the Vice President for Policy and Platforms. Secretary Abad finished his Bachelor of Science in Business Management, and Bachelor of Laws at the Ateneo de Manila University and passed the Bar Examination in 1985. A fellow of the Edward Mason Program in Public Policy and Management at the Kennedy School of Go vernment in Harvard University in Cambridge, Massachusetts, he also holds a Masters in Public Administration degree. Previously, Secretary Abad was a union organizer/trainer, research director of the Ateneo Center for Social Policy and Public Affairs, and a legal and management consultant to different local and foreign foundations.
161
Gregory L. Domingo Secretary Department of Trade and Industry
Mr. Gregory L. Domingo was appointed as Trade and Industry Secretary by President Benigno Aquino III in July 2010. He previously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and In vestments Group (IIG) and Managing Head of the Board of Investments (BOI) from May 2001 to April 2004. Prior to his stints with the government, he was President of Carmelray-JTCI Corp. (CJC) from July 1997 to November 2000. He worked for Chase-Manhattan Bank in various capacities from July 1989 July 1997 and with a number of financial institutions in the United States (First Boston, Drexel Burnham Lambert and Mellon Bank) from 1982 to 1989. Secretary Domingo also served as Vice Chairman of Belle Corporation and director for SM In vestments Corp., BDO Private Bank, PASUDECO, Manila Electric Corp., Pico de Loro Beach and Country Club, Wharton-Penn Club, and Foreign Exchange Association of the Philippines. He was also a member of the Open Market Committee of the Bankers Association of the Philippines (BAP). Secretary Domingo obtained his Masters of Science in Operations Research at the Wharton School-University of Pennsylvania in 1982, finished his MBA with distinction at the Asian Institute of Management in 1980, and graduated with a bachelors degree in Management Engineering at the Ateneo de Manila University in 1976.
162
Rogelio L. Singson Secretary Department of Public Works and Highways
Mr. Rogelio L. Singson, in leading the State's engineering and construction arm as its 42nd head, advocates transformation and innovation in governance through transparency and accountability, doing the right project, for the right price and the right quality, and undertaking more public-private partnership (PPP) projects. Secretary Singson has extensive experience in both government and private sector in the field of privatization and public-private partnership, management of tollroads and expressways, water and power utilities privatization, airports, seaports and resorts. He was President and Chief Executi ve Officer of Maynilad Water Services, Inc. after its reprivatization from July 1, 2007 to June 30, 2010 under new owners, the DMCI-Metro Pacific Consortium. He also served in various executive positions both in government and private entities to include the position of Chairman and President of Bases Conversion and Development Authority His other past involvements in the public sector includes serving as Executive Director of the Coordinating Council of the Philippine Assistance Program which coordinate and monitor the official development assistance project and programs from May 1991 to November 1992; and Assistant Cabinet Secretary under the Office of the President Corazon C. Aquino from July 1987 to May 1991. Secretary Singson obtained his Bachelor of Science Degree in Industrial Engineering from the University of the Philippines in 1971 and attended a Master's Program in Public & Business Management at the De La Salle University. He also attended various trainings abroad on PPP, privatization and Build Operate Transfer (BOT) Schemes.
163
Joseph Emilio Aguinaldo Abaya Secretary Department of Transportation and Communications
Mr. Joseph Emilio Aguinaldo Abaya was appointed as Transportation and Communications Secretary by President Benigno S. Aquino III on October 18, 2012, making him the 17th head of the department. Upon his assumption to office, Secretary Abaya was ordered by the President to continue intensifying the buildup of transportation infrastructure in the country, in line with DOTCs objective of providing the people with convenient, affordable, reliable, efficient and safe transport systems on land, sea and air. Prior to his appointment, Secretary Aba ya was a member of the House of Representatives, representing the 1st District of Cavite for three consecutive terms beginning 2004. He chaired the Committee of Appropriations in the 15th Congress. Before joining public service, he was a Lieutenant Commander in the Philippine Navy, having earned this rank over the course of 20 years on active duty. He started out as a naval officer aboard different vessels and was eventually assigned to the presidential yacht, BRP Ang Pangulo. Notably, he served as aide-de-camp of former President Corazon Aquino, over two decades before her son would appoint him to his own official family. Secretary Abaya obtained his Electrical Engineering degree from the University of the Philippines-Diliman and received citations as a University and College Scholar. After a year in UP, he then entered the Philippine Military Academy (PMA) and later on was sent to the US Naval Academy (USNA) in Annapolis, Maryland, where he earned his Bachelor's Degree in Mathematics. He also obtained his Master of Arts Degree in Electrical Engineering at Cornell University in Ithaca, New York. He received his Juris Doctorate from the Ateneo de Manila University School of Law in 2005 and was admitted to the Philippine Bar in 2007. 164
Carlos Jericho L. Petilla Secretary Department of Energy

Pr ior to his appointment as the Secretary of Energy in November 2012, Mr. Carlos Jer icho L. Petilla served as Governor of the Province of Leyte, Philippines since 2004. As Governor, he focused on the provision of basic services by instituting various improvements in the provinces health care, education, and development infrastructures. His experience in information technology (IT) benefited Leyte through the improvement in government processes for better, more transparent and efficient public service. These measures earned aw ards for Leyte, such as, The Seal of Good Housekeeping (October 2011) and the Gaw ad Pamana ng Lahi Aw ard (October 2011) from the Department of Interior and Local Government; Most Business Friendly LGU Aw ard (2011, 2010, 2008) from the Philippine Chamber of Commerce and Industry; and the Hall of Fame - The Hospital Enhancement for Leytes Progress (HELP) Project (2011) and Hall of Fame - Presidential Aw ard for Outstanding Leadership in Pr oviding Quality Health Service to his Constituents from 2006-2010 (2010) from the Philippine Hospital Association. Secretary Petilla previously headed the Regional Development Council (RDC) and the Regional Peace and Order Council ( RPOC) of Eastern Visayas. These regional councils are responsible for setting economic and social targets and directions as w ell as ensuring peace, order and public safety in the w hole region. Outside politics, Secretary Petilla has been involved in the IT industry for more than tw o decades. He w as President and CEO of International Data Conversion Solution, Inc., and Accudata, Inc. w hich provides onshore and offshore business processing solutions abroad. He is also a part-ow ner and consultant of DirectData Capture w ith business offices in the United Kingdom and United States. Secretary Petilla w as previously an educator for a number of years at the Ateneo de Manila University and consultant for various firms.
165
Proceso J. Alcala Secretary Department of Agriculture

A civil engineer by profession, Mr. Proceso J. Alcala was appointed as Secretary of the Department of Agriculture (DA) by President Benigno S. Aquino III in June 30, 2010. Prior to his appointment, he served as a representativ e of the 2nd Distric t of Quezon Province for two threeyear terms (2004-2007 and 2007-2010). As a law maker, Mr. Alcala authored the Organic Agricultural Act of 2010 (RA 10068). Mounts Banahaw-San Cris tobal Protected Landscape Act (RA 2718), and co-authored the Climate Change Act (RA 9729) and the Expanded Senior Citizens Act (RA 9994). Among other projects, he led the establishment of the Sentrong Pamilihan ng Produktong Agrikultura sa Quezon a trading center in Sariaya town that allowed farmers to sell their produce directly to wholesale buyers. This has resulted in increased incomes for their families. This trading center now serves as a model throughout the country. At the DA, Secretary Alc ala laid the Agrikulturang Pilipino or Agri-Pinoy framework as the guide for the plans and goals of the Department for a progressive, sustainable and competitive national agriculture and fis heries sector. Through his leadership and hands-on management style, he enjoined all stakeholders to put the farmers and fishers at the center of all programs, and helped restore trust in government. With this in mind, he has visited all 80 provinces of the country, meeting and feeling the puls e of small farmers, fis herfolk and local offic ials. This has resulted in field-based methods to deliver improved, effectiv e and direct assistance to farmers, fis hers and agric ultural entrepreneurs. With farmers hard work and support from the local government units and the private sector, the Philippines relinquished its status as the biggest rice importer in the world. Instead, efforts have been intensified so that the country can be self-sufficient in rice by end of 2013 through the Food Staples Sufficiency Program. Secretary Alcala obtained his B.S. Civil Engineering degree from the Luzonian University Foundation in 1978 and is a lifetime member of the Philippine Institute of Civil Engineers.
166

Ramon R. Jimenez, Jr. Secretary Department of Tourism
What trulymakes the Philippines a unique, amazing, and special place to see? For the Department of Tourism, it has found the simplest, most direct answer to the fundamental question of every traveler through its tourism campaign, Its more fun in the Philippines. The new expression is a powerful, compelling idea that draws strength from the fact that it is a fundamental truth about the Philippinesthe Philippines is not just a place to see, it is a place to be. The man behind this tagline that became a top trending topic on social media sites is a writer, mentor, former instructor, marketing communications expert, and one of the pillars of Philippine advertising the Honorable Ramon R. Jimenez, Jr., Secretaryof the Department of Tourism. Today with over 75,000 memes of the tagline contributed by people from all walks of life, the campaign has certainly built a new sense of excitement around the tourism brand and elicited renewed enthusiasm for the countrys tourism industry. In keeping with his promise to make tourism the peoples business, Secretary Jimenez aims to transform the department into a primary selling unit with the ultimate goal of not only improving statistics, but also ensuring that every endeavor would be fulfilling and profitable for Filipinos. Under his leadership, the DOT has joined convergence projects with government agencies and the private sector, and activelyespoused policyreforms. Secretary Jimenez hopes to build enough energy around tourism to give the Philippines the global attention it deserves. Brimming with confidence, he looks forward to meeting the target of 10 million foreign tourist arrivals by 2016, and seeing tourism finallytake its place as a keydriver of socio-economic progress in the country, to make it more fun for all. 167
Kim S. Jacinto-Henares Commissioner Bureau of Internal Revenue (BIR) Ms. Kim S. Jacinto-Henares was appointed as Commissioner of the Bureau of Internal Revenue on July 2010. Prior to her appointment, Commissioner Henares was Senior Private Sector Development Specialist at the Worldbank Group where she co-convened for and in behalf of the International Finance Corporation (IFC), the Growth and Investment Climate Working Group of the Philippine Development Forum to establish the national strategy for increasing growth and improving the investment climate in the Philippines. She was also in charge of the Worldbanks National Program Supporting Tax Administration Reform (NPSTAR) a US$11 Million loan to the Bureau of Internal Revenue to implement reforms in tax administration. Commissioner Henares was the Deputy Commissioner for the Special Concerns Group of the BIR from August 2003 November 2005 and was a consultant to the Commissioner from January 2003 August 5, 2003. As consultant at the International Development and Legal Consultant, she served as trade expert to the EU funded ASEAN Single Window Project, a pilot implementation of ASEAN Single Window between the Philippine Bureau of Customs and the Royal Thailand Customs; International Law Expert for the development of a Philippine National Strategy of Accession to the Revised Kyoto Convention; among others. She has also previously held various positions in government such as Director of the National Power Corporation and Power Sector Assets & Liabilities Management Corp., Chairman of Cagayan Economic Zone Authority, Governor of Board of Investments and Representative of the Investment Coordinating Committee. Commissioner Henares obtained her Master of Laws major in International and Comparative Law from Georgetown University in Washington D.C., U.S.A. She earned her Bachelor of Laws degree from Ateneo de Manila University and Bachelor of Science in Commerce major in Accounting from De La Salle University. 168
Rozzano Rufino B. Biazon Commissioner Bureau of Customs
Mr. Ruffy Biazon was appointed by President Benigno S. Aquino III as the Commissioner of Customs on September 16, 2011. He is a former member of the Philippine House of Representatives, serving in the 12th, 13th and 14th Congress from 2001 to 2010. He represented the Lone Congressional District of Muntinlupa City. In Congress, he served as Chairman of the Committee on Metro Manila Development, Vice Chairman of the Committee on National Defense and Security, Vice Chairman of the Committee on Information and Communications Technology, Vice Chairman of the Committee on Appropriations and member of the Congressional Oversight Committee on Visiting Forces Agreement. His three terms as legislator was marked by very significant achievements. He was principal author of 8 Republic Acts and co-author of 36 others. In his last term in Congress, he filed a total of 81 bills and resolutions, most of which are national in scope. For his exemplary performance as House Representative, Commissioner Biazon was cited by the Philippine Daily Inquirer as one of the most prolific legislators. The Philippine Graphic Magazine also included him as one of the Top 100 Young Leaders of the country and the Philippines Free Press Magazine as an Outstanding Congressman.
169

Teresita J. Herbosa Chairperson Securities and Exchange Commission
Ms. Teresita J. Herbosa was appointed as the Chairperson of the Securities and Exchange Commission in May 2011. Since her appointment, SECs operations have gone through complete computerization. She has embarked on an extensive capacity building of SEC personnel through training, recruitment and adoption of a performance-based evaluation system. Chairperson Herbosa having specialized in litigation for more than 30 years, has directed the SEC departments concerned to step up investigations and enforcement actions through the imposition of administrative sanctions and filing of criminal cases against persons who commit securities law violations. Apart from her job at the SEC, by law, Chairperson Herbosa is a member of the Anti-Money Laundering Council (AMLC), heads the Business and Economic Sector of the Office for Competition under the DOJ, and is Chairperson of the Credit Information Corporation which is the central credit bureau of the country. Prior to the SEC, she was a senior partner and the first female co-managing partner of the Angara Abello Concepcion Regala & Cruz Law Office (ACCRALaw). She has also received numerous citations for her legal excellence from the International Financial Law Review in its publication Guide to the Worlds Leading International Business Law Firms 2001 Edition, the Asia Pacific Legal 500 (The Guide to Asias Commercial Law Firms), and the International Whos Who of Regulatory Communications Lawyers, and other publications. Chairperson Herbosa obtained her Master of Comparative Law degree from the University of Michigan Law School in Ann Arbor, Michigan. She graduated with the degrees of Bachelor of Arts cum laude and Bachelor of Laws cum laude from the University of the Philippines.
170
Cosette V. Canilao Executive Director Public-Private Partnership (PPP) Center
Ms. Cosette V. Canilao is the Executive Director of the Public-Private Partnership (PPP) Center. Prior to joining the PPP Center, she was a Director of Standard Bank where she established and headed its distressed debt servicing business in the Philippines. Ms. Canilao was also the President and CEO of the banks various SPV companies. She is also a former partner of PricewaterhouseCoopers where she headed the Crisis Management Practice and Financial Services (FS) Industry consulting. She started her career in program lending and corporate banking. Ms. Canilao holds a Master of Science in Finance degree from the University of the Philippines. She has attended numerous trainings in the course of her career including an executive program at Harvard Business School.
171
Private Sector
Guillermo M. Luz Private Sector Co-Chairman National Competitiveness Council
Mr. Guillermo M. Luz is the Private Sector Co-Chairman of the National Competitiveness Council, a public-private sector body dedicated to developing a strategy for the long-term competitiveness of the Philippines through policy reforms, project implementation, institution-building, and performance monitoring. He was Executive Vice President and Chief Operating Officer of Ayala Foundation from December 2006 to May 2011, a foundation which manages projects in education, environment, entrepreneurship, arts and culture, and community development. He concurrentlyserved as Director of Ayala Museum from January2010 to May 2011 He was Executive Director of the Makati Business Club from 1987 to 2006, after joining its staff in 1983. While at MBC, he concurrently served as Executive Director of the Philippines-United States Business Council, Philippine-British Business Council, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-Malaysia Business Council. Mr. Luz was the Secretary-General of NAMFREL from 1992 to 2006, overseeing preparations for its Operation Quick Count and pollwatching in the 1992, 1995, 1998, 2001, and 2004 elections.
172
Private Sector
Erramon I. Aboitiz President and Chief Executive Officer Aboitiz Equity Ventures
Mr. Erramon I. Aboitiz is the President and CEO of Aboitiz Equity Ventures, Aboitiz Power Corporation, and Aboitiz & CompanyInc. He also occupies various positions in other companies. He is the Chairman of Aboitiz Renewables, Inc., Therma Power, Inc., SN Aboitiz Power, Davao Light & Power Co., Cotabato Light & Power Co., Subic EnerZone Corp., City Savings Bank, San Fernando Electric Light and Power Co., and Aboitiz Foundation, Inc. He is the Director of Union Bank of the Philippines, Pilmico Foods Corp., AboitizLand, Inc., and Family Business Development Center (Ateneo de Manila University). Mr. Aboitiz obtained his Bachelor of Science degree in Business Administration major in Accounting and Finance from Gonzaga University, Spokane, USA.
173
Private Sector
Francisco (Paco) S. Sandejas, Ph.D. Managing Partner Narra Venture Capital
Dr. Paco Sandejas is the Founder and Managing Partner of Narra Venture Capital ("NarraVC") which invests in hightechnology companies in the fields of semiconductors, communications, computing, internet, software, and alternative energy. Based in the Philippines, Dr. Sandejas invests in Silicon Valley, the Philippines and other technology hubs of the United States and Asia. He assists NarraVC's investment companies and clients with early stage financing, marketing, business development, and strategic advice. NarraVC's management group in the Philippines also provides high-technology management and consulting services. Some of NarraVC's successful past investments are SiRF (now CSR), Inphi Corporation, and Sandbridge Technologies. Dr. Sandejas is also on the boards of Quintic Holdings, Astute Networks, Stratpoint Technologies, PSI Technologies, Xepto Computing, Credit Information Corporation (Philippines), and Philippine Development Foundation. Dr. Sandejas has Ph.D. and M.S. degrees in Electrical Engineering from Stanford University where he co-invented the Grating Light Valve. He holds six US and international patents. He completed his B.S. Applied Physics degree from the University of the Philippines as its first summa cum laude and was awarded one of the Ten Outstanding Students of the Philippines in 1989 by the Philippine President. He has worked as a research consultant for two start-ups in optical nanotechnology, as a Product Manager at Applied Materials, and as Vice-President at H&Q Asia Pacific.
174
Directory
Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. A. Mabini St. cor. P. Ocampo St., Malate Manila Telephone Number: (632) 708-7206 Fax Number: (632) 708-7209 Department of Agriculture Secretary Proceso J. Alcala 4/F, DA Annex Bldg. Diliman, Quezon City Telephone Number: (632) 920-3986 / 920-2223 Fax Number: (632) 926-6426 Department of Budget and Management Secretary Florencio B. Abad General Solano Street, San Miguel, Manila Telephone Number: (632) 735-4926 / 735-4929 Fax Number: (632) 735-1955 Department of Energy Secretary Carlos Jericho L. Petilla Energy Center, Merritt Road, Fort Bonifacio, Taguig City Telephone Number: (632) 840-2008 Fax Number: (632) 812-6194 175 Department of Finance Secretary Cesar V. Purisima 6/F, Department of Finance Building, Roxas Boulevard, Manila Telephone Number: (632) 523-9215 / 523-9219 Fax Number: (632) 526-8474 Bureau of Customs Commissioner Rozzano Rufino B. Biazon BOC Bldg., South Harbor, Port Area, Manila Telephone Number: (632) 527-4537 / 527-4573 Fax Number: (632) 527-4573 Bureau of Internal Revenue Commissioner Kim S. Jacinto-Henares National Office Bldg, Agham Road, Diliman, Quezon City Telephone Number: (632) 921-0430 / 924-2915 Fax Number: (632) 925-1789 Securities and Exchange Commission Chairperson Teresita J. Herbosa SEC Bldg., EDSA, Greenhills Telephone Number: (632) 584-5343 / 584-5767 Fax Number: (632) 584-5498
Directory
Department of Public Works and Highways Secretary Rogelio L. Singson Bonifacio Drive, Port Area, Manila Telephone Number: (632) 304-3300 Fax Number: (632) 304-3020 Department of Tourism Secretary Ramon R. Jimenez, Jr. Department of Tourism Bldg., T.M. Kalaw Street, Manila Telephone Number: (632) 523-8411 Fax Number: (632) 521-7374 Department of Trade and Industry Secretary Gregory L. Domingo Industry and Investments Bldg., Senator Gil Puyat Ave., Makati City Telephone Number: (632) 890-9333 / 896-1166 Fax Number: (632) 899-5518 Department of Transportation and Communications Secretary Joseph Emilio Abaya The Columbia Tower, Brgy. Wack-Wack Ortigas Ave., Mandaluyong City Telephone Number: (632) 727-7109 Fax Number: (632) 726-7104 176 National Economic and Development Authority Secretary Arsenio M. Balisacan 12 Jose Maria Blessed Escriva Drive, Ortigas Center, Pasig City Telephone Number: (632) 631-3716 / 3747 Fax Number: (632) 631-3747 Public-Private Partnership Center Executive Director Cosette V. Canilao NEDA sa QC, EDSA, Diliman, 1103 Quezon City Telephone Number: (632) 929-4968 / 929-5187 Fax Number: (632) 929-8593
Investor Relations Office

Promoting Excellence in Investor Relations. Enhancing Sovereign Value
Eleven Years of Commitment to the Investor Community The effective implementation of the Governments economic program and its success depends on regular two-way dialogue between economic policy makers and the investment community. The Investor Relations Offic e (IRO) was established in July 2001 to strengthen the countrys relations w ith investors and other stakeholders by promoting activ e channels of information flow and dialogue between economic policy makers and investors. Based in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP), the IRO has a dedicated staff comprised of trained economists and communication specialists who work with colleagues in the BSP and the economic agencies to implement a w ide-ranging programof investor relations activities. As the Government has implemented its economic reform program over the last ten years, the IROs program of investor outreach has helped to ensure that investor decisions benefit from a comprehensive understanding of the progress in reforms and w hat they mean for the economic fundamentals of the Philippines. In turn, the Governments economic reform program has made the economy relatively more resilient amid the global financial and economic crisis . With stable macroeconomic fundamentals, the Philippines remains as one of the most viable economies for investments in the emerging market. The IRO is proud to have played a role in communicating the successes of the Governments reform program in the last eleven years and is committed to continuing its efforts to promote the Philippine economy. Serving Our Stakeholders in the Philippines and Internationally The IRO provides services to a wide range of stakeholders the Governments economic agencies, financial institutions, credit rating agencies, bilateral and multilateral organizations, domestic and foreign investors, the diplomatic corps, business people, the media and the general public. All servic es to its stakeholders are underpinned by a set of fundamental principles: transparency, accessibility, timeliness, consistency and feedback. The IRO adopts a multi-pronged approach to serving its stakeholders through: Dissemination of key economic and financial information about economic policy objectives and performance Seeking market feedback on current and proposed policy measures Providing feedback to economic policy-makers about investor sentiment Facilitating candid and constructive dialogue between policy-makers and investors
177
Investor Relations Office

Promoting Excellence in Investor Relations. Enhancing Sovereign Value
The IRO undertakes a range of initiatives to build aw areness among domestic and international investment audiences around the Governments economic reform program, promote specif ic investment opportunities in the Philippines and facilitate information exchange and dialogue betw een key economic policy decision-makers in the Government and domestic/international investors. These initiatives include: Regular Economic Briefings to update the business community, media and industry organizations on the countrys economic performance Investor Roadshows to bring the Governments resilient economic performance record, commitment to sound economic management and responsible reformto members of the international financial community Media Briefings to raise aw areness of the Governments progress in economic reforms and plans for ongoing reforms Government Policy Roadshows to increase the business communitys understanding of government policy measures to generate support for the policy implementation process Publications to inform policy-makers about market developments and sentiment E-mail service to keep investors and other investors abreast of data releases on a regular basis An English Language website, www.iro.ph, to provide a w ide range of easily accessible information about the Philippines economic performance and the governments economic policies. The website serves as a warehouse of valuable information such as economic briefing presentations, press releases and economic and statistical data.
Contact Information
For further information about the Investor Relations Office, or about the Philippine economy, please contact: Claro P. Fernandez Investor Relations Office Bangko Sentral ng Pilipinas A. Mabini St. cor. P. Ocampo St. Malate Manila, Philippines 1004 Tel: (632) 708-7487 / (632) 336-7124 Email: FernandezCP@bsp.gov.ph Fax: (632) 708-7489 Website: www.iro.ph
178

Good Governance Is Good Economics 2013 Feb

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Good Governance Is Good Economics 2013 Feb

Caricato da

Copyright:

Formati disponibili

The Republic of the Philippines

Good Governance is Good Economics: Achieving Investment Grade

3 19 32 46 62 79 96 107 119 138 147 157 175 177

Comparative GDP growth shows Philippines performing better in recent years...

6.0 4.0 2.0

0.0 -2.0 -4.0

Viet Nam Singapore

The 2012 growth brings us closer to 7-8% target

GDP Growth Rate vs. Official Target

*Phi l ippine Development Plan: 2011 2016 ta rgets

Philippines is commended for sound macroeconomic fundamentals

Favorable interest rates and sound banking system

NPL Ratio, LHS Real interest rates, LHS CAR, RHS

2005 2006 2007 2008 2009 2010 2011 2012

Sustainable fiscal position

Strong external position

Fiscal Balance/GDP (RHS)

Source: Moodys, S&P and Fitch

Has growth been inclusive?

-20 10 20 30 POV 40 50 Trend 60 70 Cycle 80 90

Source: SWS Survey http://www.sws.org.ph/ind-pov.htm

Regional GDP, in % share to Philippine GDP (2009 2011)

14.1% 61.7% 12.5% 10.9%

14.1% 12.8% 62.4% 10.8%

Addressing constraints to growth

Ensure that no region is left behind

National Road Classification North-South Backbone

East-West Lateral Other Road of Strategic Importance

Secondary National Road

Firm commitment to meet the Millennium Development Goals

Agriculture will remain a priority sector

Labour Productivity in Agriculture, Selected ASEAN Countries (1980-2011)

Agri share in Employment by Sector, LHS employment, LHS

Agri share in GDP, RHS

Simplifying labor regulation and address skills mismatch

Climate Change Adaptation & Disaster Risk Reduction Management

CCA & DRRM

Good governance will continue to be the platform of public administration

Alignment of plans and policies

Monetary, External and Financial Sectors

Governor Amando M. Tetangco, Jr. Bangko Sentral ng Pilipinas

2012 Performance/Achievements 2013 Economic Outlook BSPs Policy Directions

Policy/reform milestone and their impact

Strong external position and stable exchange rate

Efficient, sound, and competitive financial sector

Inflation environment continues to be favorable

Dec 2012 = 2.9% 2012 Ave = 3.2%

Low lending rate encourages investment and consumption

4 2 0 2005 2006 2007

Average Bank lending Rate

Strong external position despite the challenging external environment

BOP position remains in surplus

Foreign exchange reserves continue to build-up External debt/GDP declines significantly

Gross International Reserves 2004 Dec 2012; in billion US$

Import Cover (rhs)

External debt in US$ billion (lhs)

External debt as % of GDP (rhs)

Sound and stable banking system intermediated funds to productive ends

Quality of loan portfolio continues to improve

4500 3000 1500

2010 2011 Oct'12

TLP, gross (RH S)

NPL Ratio ( LHS)