REPORT OF THE STUDY COMMITTEE ON THE PROPOSED FEDERAL STATE OF PALAWAN INTRODUCTION A University Study Committee was created

on August 24, 2005, by President Teresita L. Salva through OFFICE ORDER No. 138, s.2005, tasked to make an ii-depth research on the establishment of a Unitary Federal State of Palawan. Its mandate was to consider the feasibility of Palawan as a Federal state of the proposed Federal- Parliamentary Government being launched by the National Government. An academic study, according to Dr. Jose Abueva, would be the best support for Palawans aim of becoming a state separate from the proposed Western Visayas-Palawan Federal State. There was urgency in doing the study since the Consultative Constitutional Commission was soon to meet. The main concern of the Committee was to construct the socio-economic profile of Palawan, with emphasis on its being support itself economically. The study had to be submitted to the Con-Com before it went around the country for consultation. To justify the capability to become a federal state, the following areas were studied. Legal/Political basis; Geologic-geographic/bio-physical basis; Historical basis; Socio-economic basis.

The committee first met on August 29, 2005. The original deadline to finish the work in two to three weeks had to be extended to more than a month due to the difficulty of getting sufficient data from various sources. At the same time, the ConCom was organized towards the end of September, giving the study committee a little more time to finish its work. After dividing the work, the committee met on September 14,21,28, October 5, reporting updates on specific assignment as fallows: Legal basis-Atty. Ustares; Political basis-Mr. Zambales Geologic-geographic basis- Dr. Socrates Bio-diversity- Flora and Fauna Dr. Docto Historical basis- Atty. Alisuag/Prof. Evangelista Socio- Economic basis- Mr. Ventura, Prof. Evangelista, Ms. Morante, Ms. Josol

We have emphasized the geologic-geographic, bio-physical, historical, and social uniqueness of Palawan and why it should be considered as a separate state. It is in the economic viability aspect that we met with difficult getting the data. In the first place, records of the Provincial Government and other agencies of the National Government had either incomplete data or no record at all on income and expenditure for 2004. Moreover, available data showed that these agencies did not have excess income in order for Palawan to be viable as an independent state.

Current statistical data on population is likewise not available, the last census having been taken in 2000. It is the economic potential that shows promise, given certain conditions which are discussed in the report. Yet, data collection in some areas is still being awaited. We therefore submit this report with some misgivings for circumstances beyond our control. All members of the study committee did their own work above and beyond their regular duties. We thank President Salva for her quick response to the need for the study committee, and for putting her trust on the membership of the committee. HISTORICAL BASIS PALAWAN: A HISTORY I. PRE-HISTORIC PERIOD The geographical position of Palawan, a long corridor between the Sulu and China Seas was important in the movement of peoples and cultures connecting it with the Asian mainland through Borneo. During the Pleistocene era, it served as a land bridge for flora, fauna and people. There are striking relationships between the plants and animals of Palawan and Borneo. Archaeological and ethno historical data also reveal cultural similarities with Sabah and Sarawak. When the land bridges were submerged Neolithic men likely sailed into what would be the Philippines via the east and west coasts of Palawan, taking refuge in times of big waves and monsoons. There are today numerous caves, collectively called Tabon Caves, which show traces of such prehistoric habitation along the limestone west coast near Lipuun Point and Bacuit Bay. These caves reveal a flake tool tradition dated to the Upper Pleistocene, about 50,000 to 9,000 years ago - an early post-Pleistocene site, 8,000 to 4,000 years ago; an advanced jar-burial complex of the late Neolithic, 3,500 years ago; and an advanced Metal Age, with stone and porcelain jars of the Sung and Yuan Dynasties in the twelfth to fourteenth centuries (Fox 1970; Kress 1977). This remarkable cultural chronology more than links Palawan to a wider Southeast Asian prehistory. The Tabon Caves marked the existence of the first man in the Philippines some 20,000 to 22,000 years ago, thus opening Philippine Prehistory, giving vent to Palawan being the Cradle of Philippine Civilization. (Robert Fox, Tabon Caves) During the period of the Three Kingdoms, "Little, dark people" living in Anwei Province in South China were driven south by the Ham People. Some settled in Thailand, others stayed in Malaysia, and still others went farther south to Indonesia, Sumatra, Borneo and the Philippines passing through land bridges between Palawan and Borneo. They were known as Aetas and Negritos from whom our Batak tribe descended.

II. PRE-SPANISH PERIOD Between the periods, 220 - 263 AD, Tsung-Tse-Yang-Kau, author of the book, "Chang Shik", mentioned 43 places in the Philippines. Among these were Camarines, Laoag, Corregidor, Luzon, Cavite, Iling, Antik, Cuyo, Dapitan, Balayan and Palawan In the early 9th Century, Chinese who traded with the natives of the coastal regions of Calamianes knew the place as "Palao-yu," meaning "Land of beautiful safe harbors." As early as the 9th Century, trade and cultural contact existed between the

Philippines and her Southeast Asian neighbors, as well as China, Japan India and the Arabian nations. In between the periods 1209 & 1214 & 1349 , the names "Kaimayen," "Palao-yu," and "Pakinung, meaning Calamian, Palawan and Busuanga, respectively, were mentioned in Chinese narratives as part of the dependencies of the Mai. Chao-Ju-Kua, in his book, "Chua Fan Chi" wrote the most vivid and detailed description of Palawan. He recorded that "San Su," (three islands) were "Kiamayan", "Palau-ye," and "Pakinung." The area contained many "lofty .ridges and ranges of cliffs that rise as steep as the walls of a house." This description fits exactly the cliffs of Calis Island in Coron. III. THE SULTANATE RULE No historical record exists to establish the period when the province became part of the Sultanate that was to include the Sulu archipelago, but it is fairly accepted that the province was being ruled from the island of Borneo, by the Sultan of Brunei. The royal genealogy of Brunei's sultans dates back nearly 600 years when in 1365, Awang Alak Betatar embraced Islam, married a Johore princess, and assumed the title Sultan Muhammad, according to early chronicles. A Persian missionary and direct descendant of the Prophet Muhammad, Sharif Ali, as Brunei's third sultan, further spread Islam, built mosques, and the first defense barriers at Kota Batu and across the Brunei River. The sultanate's golden age dawned with the reign of the fifth sultan, Nakhoda Ragam or the singing captain, Sultan Bolkiah, who was famous for many conquests. His voyages took him to Java, Malacca and the Philippines, where he seized Seludong (Manila). His rule extended over the Sultanates of Sambas, Pontianak, Banjarmasin, Pasi Kotei, Balongan, the Sulu Archipelago, and Islands of Balabac, Banggi, Balambangan and Palawan In the year 1400, it was estimated that Shareef Kabungsawan and Rajah Baginda. Kabungsawan introduced Islam in Mindanao and founded the Sultanate of Maguindanao. Baginda introduced Islam in Sulu. Later the Sultanate extended its influence over Palawan. IV. SPANISH PERIOD Ferdinand Magellan landed at Homonhon, Samar, on March 16, 1521 and was killed on April 27, 1521 in a battle with Lapu-Lapu in Mactan. .After Magellan's death, remnants of his fleet landed in Palawan where the bounty of the land saved them from starvation. Pigafetta, Magellan's chronicler named the place "Land of Promise. The Spaniards saw the people's cultivated fields and their weapons consisting of blowpipes, spears and bronze Lombard, and witnessed for the first time cock fighting and fist fighting. Pigafetta likewise discovered that the pre-Spanish Palawenos had their own system of writing consisting of 13 consonants and 3 vowels. They had a dialect of 18 syllables. He further wrote that in Palawan, the local king had 10 scribes who wrote down the King's dictations on leaves. Pigafetta further called the island "Pulian", a name closely similar to "Pulaon", according to Dr. Jose Rizal. Actually, before the entry of the Spaniards and continuing through almost the entire period of their occupation, the territories of the province were persistently under the influence of Islamized people from Borneo and the Sulu archipelago. Indeed, Manila or Luzon would themselves have become Muslim, had not the Spaniards come to establish the region as a strategic crossroads or passageway. Pigafetta and other chroniclers mentioned Muslim settlements along the coasts of Palawan island, tribute collection and proselytization in Cuyo and the Calamianes and trading activities with Borneo and other southern locales. A glimpse of Tagbanua,

Palawan and Molbog society and culture reveals Muslim dominance and influence in material culture and social organization, apparently a consequence of trading activities in south and central Palawan that persisted until the second half of the nineteenth century. From the year 1565, the Spaniards began their earnest colonization of the Philippine archipelago , starting from Cebu and then from Manila. By the 1570s, they were collecting tribute in the Calamianes and the Cuyo islands V. PALAWAN RESISTANCE TO SPANISH RULE Palawan was the scene of a protracted resistance against the colonization of the Spaniards. Contrary to biased historical accounts from Spanish writers and later on Spanish influenced Filipino writers, the indigenous people of the province who were part of the Sultanate, continuously rose in arms and harassed the outposts that the Spaniards were trying to establish in the province. In the year 1574, or fifty-three years after Magellan's landing in our country, there was a plot to drive the Spaniards away, but its uncovering led to the execution of its leaders including those from Calamianes who were very much involved in the plot. Another attempt in 1587 brought together in alliance the chiefs of Tondo, Pandacan, Polo, Catangalan, Castilla, Taguig, Candaba, Navotas, Maysilo, Bangos and Cuyo. The leaders were Magat Salamat, son of Lakandula, and Agustin de Legazpi, Lakandulas nephew. The chiefs solicited help from the Bornean rulers to whom they were related as well from a Japanese captain who was supposed to bring arms and soldiers to help them drive the Spaniards away. If successful, the chiefs would give one-half of the tribute customarily collected by the Spaniards to their Japanese allies. The plan remained a secret from the Spaniards for fifteen months, but before it could be put into operation, it was betrayed by another chief. Most of the chiefs involved were sentenced to death or exile and their property confiscated. (Renato Constantino. A Past Revisited, p. 87) The Augustinian Recollects, planted the cross" in Cuyo in 1622. They reported a warm welcome from the natives, excluding the babaylan (native priests), who would be disadvantaged with the coming of the friars and their policy of reduccion, the gathering of the natives into a town under the bells. The next year, the Spanish crossed the sea for Taytay in Northern Palawan island, known to the Spaniards as Paragua. His Excellency, Senor Don Pedro de Arce, Bishop of Cebu, in a decree, instructed the Agustinian Recollect Fathers to take charge of the Christianization of Palawan, including the Cuyo Islands. That same year, 1622, Cuyo and Taytay were "Christianized". Five Spanish Agustinian Recollect Missionaries from Cebu, led by Rev. Fr. Juan de Santo Tomas, arrived in Cuyo which he called Garden of Nature", because of its spectacular pleasantness and beauty. Fourteen years after the Spanish missionaries started their Evangelization Mission; the impact of Christianization began to be felt in majority of the pueblos in Palawan. This enraged the Muslims who considered this as an encroachment upon their territory, religion, independence and culture, such that in June 20, 1636, a powerful Muslim fleet headed by Datu Tagul, brother of Sultan Kudarat, attacked Cuyo, Agutaya, Culion and other places in Northern Palawan. On December 21, 1636 a Spanish naval flotilla of 6 vessels and 250 men under Capt. Nicolas Gonzales intercepted Tagul and his men with their loot and booty off Punta Flechas. In the naval battle, Tagul was slain and 300 of his followers were captured. The attempt of the Spaniards to establish a foothold in Mindanao, met with defeat from the resistance of the Moros. In the year 1718, The Spanish activity of this period was not directed against the seat of Moro power in Jolo. They turned rather to the neutral ground on the island of Palawan. A Spanish fort was erected at Labog, (now part of Brookes Point) in Palawan in 1718. Supplies were sent only

infrequently to the men of the garrison and the location of the fort itself was in a deadly malarial zone. Most of the garrison died without coming to grips with the Moros at all, and the fort was abandoned in 1720. Even the outposts established by the Spaniards in the Northern part of Palawan, met resistance from the Moros such that on July 1720 they attacked Linapacan, destroying the Spanish outpost and killing some Spaniards, in the year, 1721 Agutaya was attacked, catching the Spaniards by surprise, [P.L. Ruiz) and in 1730 they attacked the military base in Taytay. During this period, several noted battles were fought in Palawan between the Spaniards and the Moros involving hundreds of fighting men on both sides. The Spaniards were, however, still interested in securing a foothold on Palawan as it offered a course of least resistance with less possibility of Moro attacks. In 1730, Captain Antonio Fabeau, at a remuneration of $50 per month, was sent with troops to Palawan with orders to subdue the country. This announcement was equivalent to waving a red flag. The Moros, who had hitherto ignored Palawan, now descended in force upon the hapless garrison. The fort was repeatedly attacked, and hardly a member of the garrison survived the combination of rotting food and Moro kris. In 1735 a settlement was established at Taytay in Palawan, but this suffered the same fate as the fortress in Labog. The mood of the times was preserved by an account of the horrors of the Spanish outposts. Padre Crevas says in part: As far as Balabac (Palawan) is concerned, its history shows the colors of a sorrowful tragedy, where the death of its first Governor, Senor Garnier, appeared like a pre-announcement of the many victims this deadly soil was to devour. The position of this little isle between Palawan and Borneo is eminently strategical and thus very wisely the government decided upon its occupation and colonization. We find that not a few of the men maliciously make ulcers or conceal them until the moment of embarking for Balabac, a point which imposes respect upon the soldiers. It is certain that the lack of things most necessary to life have added sometimes its rigors to those of the climate, and when the Elcano arrived from Balabac we found to our sorrow that since the end of December the garrison lacked meat, oil and lard, and only sustained itself with a liter and an eighth of rice daily. Thus it is that the state of entries into hospital and deaths are horrible. I will content myself with saying that in a town composed of two companies of 80 men each, of 150 sailors, 15 artilleries and 50 prisoners, in one year 122 people died. The closeness with which the Moros confined the Spanish soldiers to the fort is shown by the lack of meat and lard in a country which abounded in deer, pigeons and wild boar. The Spaniards proved unequal to the development of the Island of Palawan. At the time of the evacuation of the Philippines by Spain in 1899, we find but two stations on the entire island. At one of these, Balabac, Spain retained a small naval station with a force of twenty-two marines. The other post on Palawan was a gunboat station at Puerto Princesa manned by two companies of infantry. Two small gunboats made periodic patrols of the island and the station was visited by a mail steamer every twenty-eight days. The post at Puerto Princesa was of modern date, being established only twenty years prior to American occupation of the islands. In the year 1858, the province, then known as Calamianes was divided into 2 provinces, "Castilla" and "Asturias." "Castilla," comprised the Calamianes, the

adjacent islands and the northern portion of Paragua. Its capital was Taytay. "Asturias" included the rest of Paragua together with the island of Balabac, which early that year was made into a politico-military province with the name of Puerto Principe Alfonso. VI. THE ESTABLISHMENT OF PUERTO PRINCESA In the year 1872, the Spaniards decided to establish a foothold in the main island of Paragua, with plan of making it the capital of the province. They also had in mind the establishment of a place to exile political dissenters. A colonia penitenciaria it would be as well, just in time for the Cavite mutineers of February. The capital was to be founded on "a place with a good harbor, with good water supply, where there are some groups of docile Tagbanuas." The site selected was called Iwahig by the natives and christened Puerto Asuncion and later Puerto Princesa by the Spaniards. The natives were to be befriended and given tools, seeds and other materials, while the nucleus of a future Christian poblacion would be founded by 50 or 100 poor families from Cuyo. The expedition consisted of the politico-military governor, a chaplain, and a missionary leading a compania disiplinaria with 22 officials, 183 soldiers engineers, an administrator, a medic and a coadjutor. Together with 27 women deportees and 20 civilians, laden with instruments for felling timber and materials for construction and masonry, the expedition left Manila on 22 February 1872 after a grand parade and pealing of the bells, invoking the Hispanic glory of a 300-year history. They passed Cuyo en route to load additional provisions. At noon of 4 March 1872, they dropped anchor at the Puerto Princesa harbor and saluted each other. An account of the event states: There was a scramble through the mangrove thickets to the highest point, where the Spanish flag was planted with the accompanying cheers and rifle fires, followed by the signing of the Acta at three o'clock. A temporary headquarters was established along the seashore, and then efforts at clearing turned inland, toward what would become the poblacion. Then followed a series of "firsts," significant from the Christianization perspective. The first mass on 10 March, in a makeshift chapel with cover of wind sun and water," the first baptism, 24 March, of Celia Marcelo born November 1871, daughter of Mr. and Mrs. Alberto Marcelo of Cuyo the first wedding 8 June, of Tranquilino Asuncion of Pasig and Isidora San Jose of San Juan del Monte Manila; and the first internment, 4 April, of Justo de la Cruz son of Eugenio de la Cruz and Maria Roja of Santa Cruz, Manila The earliest inhabitants of Puerto Princesa were convicts or deportees from Luzon, in the same manner that the earlier non-native population of Cuyo were deportees from Spain convicted of political and common crimes. Puerto Princesa was not exactly in the mold of a reduccion; absent are accounts of a sizable native population being gathered and herded or resisting and fleeing was more of transplantation. As to what kind, we initially get an idea from the traveling French naturalist Marche. He visited the place a decade later, in 1883, and bequeathed us an impression that would later become a stereotype beclouding the image of the province up to the present. The inhabitants of Puerto Princesa are deportees: almost everybody is either a convict, a murderer, a thief, etc. There are only two Spanish merchants, a butcher and a grocer, some Chinese and a few inhabitants of the islands of Calamianes who compose the surplus population of the new Spanish colony" [ Marche, 1970, 206 209].

Despite such impression, Puerto Princesa eventually showed up to its promise as the center of the province's development effort. In 1894, Puerto Princesa received the distinction of being "one of the most beautiful towns (uno de losmas bellos) in the country because of orderly distribution of streets, buildings and houses, and its cleanliness." VII. THE PACIFICATION OF THE PROVINCE In the year 1873, the capital of the province was transferred from Taytay to Cuyo. [Fernandez and Fernandez, The History and Culture of Cuyo ], but the attacks from the Moros persisted such that in 1876, they attacked the towns of Linapacan and Busuanga. They burned Linapacan and its church. [ Cedulario, 1717 to 1722;' Folio 114 to 164) and in 1876, Bacuit town and neighboring islands were attacked. Farther north, Linapacan was pillaged, Culion taken hostage, and Busuanga defended valiantly. Twenty times between Caruray and Apurauan on the western coast, raiders carted four "big slave cargoes" from Tagbanua settlements. The south of Palawan was under the jurisdiction of the Sultan of Sulu. Harun ar-Rashid (Alon Narrasib, Jaron, Surutan Alun), Sultan of Sulu from 1886 to 1894, who resided in BonBon, South Palawan. It was said that Surutan Alun picked the first Tagbanua masikampu in Apurauan. The Muslims continued to have control of the gathering of slaves and forest products for domestic and trade purposes, instilling fear and submission. The Muslims eventually yielded to a vigorous southern campaign of the Spaniards in the latter part of the century. The pueblos moros became vulnerable to attack and occupation by a strengthened Spanish naval force. The occupation, albeit token and threatening at best, was formalized with the signing by the representatives of Sultan Harun of a document recognizing the power of the King of Spain in Puerto Princesa on 19 November 1886. VIII. PARTICIPATION OF THE PROVINCE IN THE REVOLUTION The revolutionary movement, led by the Katipunan, started in Manila and the surrounding Tagalog provinces, but eventually took hold in places north and south. Captured revolutionaries or suspected filihusteros and insurrectos increased the ranks of the deportees. About 200 of them were said to be exiled to Balabac. The ship Alava disgorged 53 deportees in Puerto Princesa on 23 September 1896. From them would come revolutionary action. Initial reports assured them of control and vigilance, but Spanish suspicions grew as the new arrivals teamed up with the old deportees. By November "a vast conspiracy" was discovered. 235 deportees and 50 native soldiers of Regiment 68, were to kill the Spaniards in the colony, attack the fort in the poblacion, and take the mail ship when it next arrived. The Spanish governor was aghast that "in a town of 2,000 inhabitants, there was no one loyal to Spain to reveal anything about the conspiracy." A mestizo deportee, Damaso Ponce and a fellow Bulakeno, Ceferino Aldaba, headed the uprising. The Spaniards quickly attacked the regiment's quarters, detained 40 men and rounded up the rest. Five leadersPonce and Aldaba, two soldiers of Regiment 68 and one soldier of the provincial forcewere sentenced to die, and thirty others were meted lighter penalties. The five were shot at dawn of 26 November 1896 The next year, 20 November 1897, the native detachment of Balabac arose and freed the deportees. In a whirlwind attack planned together with some Muslims, they overwhelmed the Church; killed the Spaniards including the governor; destroyed the water tank; and burned government buildings. Puerto Princesa and Balabac thus did their part in the movement that severed the colonial ties, making the Revolution more than just the regional act it is often said to be. On November 8, 1898, a force led by Sgt. Vicente Reynoso freed the prisoners at Puerto Princesa which was then the dumping ground for all the prisoners in the

province. The liberated prisoners fought the Spaniards who later escaped to North Borneo where they had a garrison On December 1898, the "Govierno de Revolucion Dictatorial in Lucbuan, Cuyo Island, was declared by Don Casiano Padon. Popularly known as "Lucbuan Republic", this government was short-lived. It was an offshoot of the Philippine Revolution and the only one of its kind in the entire country. IX. THE REVOLUTIONARY GOVERNMENT OF PALAWAN By 1898, the Spaniards withdrew their forces throughout the country, the result of the renewed siege by the Filipinos as well as the entry of the American naval forces in Manila Bay. The Philippine Republic was established in 1899 in Malolos, and representatives were appointed by President Emilio Aguinaldo to facilitate integration of areas such as Palawan into the new government, this amidst the threat of impending occupation of the country by the Americans. The representatives' efforts to organize a new government apparently showed that they made no distinction between national and individual interests, ensuring that "nothing has changed, it was just like the old regime." President Emilio Aguinaldo's representative in the Calamianes landed in Taytay in 1898 as Chief of the Revolutionary Army, but by the next year he was committing abuses against the natives in the Cuyo islands. Hermogenes Constantino, Aguinaldo's commissioner in Paragua in 1899, a Tagalog from Bulacan, presented revolutionary credentials, was active in setting up local governments, and exhorted the people towards greater involvement. Unfortunately, as it later turned out, these efforts were largely for his own personal well-being. Successive events showed how men of the times succumbed to the temptations of power. A replacement commissioner, Rufo Sandoval of Culion, sought to rectify the situation and maintain the dignity of the office. In May 14, 1899, the officials of the Revolutionary Government of Palawan gathered in front of the Municipal Hall of Puerto Princesa where they took their oath from the Revolutionary Governor Hermogenes Constantino, and swore to defend the newly proclaimed Philippine Republic. The following officials were elected, with Constantino having been elected by acclamation as Governor. Council President Councilors : : Licerio Patricio Victoriano Ledesma Ceferino Muyot Regino Austria Vicente Reynoso Eduardo de la Cruz Laureano Vigan

Alternates

Earlier on May 9, 1899, Constantino gathered the leading citizens of Puerto Princesa, and after making them swear allegiance to the new republic, presided over the election of their leaders. The following were elected: President Vice-President: Deputy for Finance : Deputy for Justice : Deputy for Police Barrio Presidents : Teodoro Agarao Eugenio Morales Mariano Ponce de Leon Manuel Venturillo : Agustin Mendoza

Calero : Cuyito : Tagburos Yrauan: Canigaran Yhuajig

Victor Francisco Anacleto Baculi : Nicomedes Borromeo Patricio Cababao : Macario Sueno : Agustin Magno

In September 1, 1900, Rufo Sandoval, the former Gobernadorcillo of Culion, was appointed by Gen. Baldomero Aguinaldo, Secretary of Interior of the Philippine republic, to replace Hermogenes Constantino who has been accused of corruption and other despicable acts. Constantino was arrested by the revolutionary government on October 4, 1900 in Araceli. On the way to Culion, to check reports of American incursions, a flotilla of boats headed by Gov. Rufo Sandoval encountered the American gunship Samar, on May 24, 1901 near Maytiguid and after a brief encounter the group of Gov. Sandoval fled inland leaving their boats. The Americans destroyed the boats and confiscated documents of the revolutionary government. That was the last sighting of Sandoval who reportedly died not long after due to sickness. On May 29, the gunboat Samar joined up with Aelus under Major George LeRoy Brown and the U.S.S. Vicksburg under Cap. E.B. Barry and prepared to attack Puerto Princesa which was then still being held by the Filipino revolutionary troops. Puerto Princesa surrendered without a fight to the Americans on the same day. X. AMERICAN REGIME After the Filipino-American War, the Americans established the Civil Government of Paragua with Major John Brown as the First Appointed Governor. Paragua then included practically the same territory as the former province of 'Castilla"or Calamianes, the Cuyo and Calamianes Island groups and Dumaran Island. Cuyo was the capital. (Philippine Commission Act 422, enacted June 23, 1902). The province was organized under the administration of the Americans on 23 June 1902 by Act 422 of the Philippine Commission. The organization was little hampered, and the occupiers were heartened by their enthusiastic welcome in Cuyo. Act 747 extended the province to include southern Palawan and the Cagayan islands. Act 1363, in 1905, again renamed the province Palawan instead of Paragua The Provincial boundaries were further revised to include all the Paragua of Palawan, together with essentially all of the other islands and territory it has today. (Philippine Commission Act 747, enacted May 14,1903). Culion Leper Colny In the year 1904, a new American Governor, Luke Wright was appointed. His most important achievement was the transfer of jurisdiction and control of Culion from the Municipality of Coron and reserving the same as a leper colony and a government stock farm. This year also marked the arrival of some Thomasites, the American teachers who came on board the US Transport Thomas, in Palawan. Seven were assigned in Cuyo. They were: 1. IrahD.Cobb 2. William B.Dawson 3. Nellie E. Knapp 4. W.C.Spencer 5. ChasH. Stone 6. Horace E. Morrow 7. Charles D. Hart Others came earlier aboard the transport Lawton and Sheridan. Iwahig Penal Colony

In November 1904, sixty prisoners were sent to Palawan to inaugurate a penal colony on the Iwahig River, opposite the town of Puerto Princesa. The object was to establish a settlement where long-term prisoners soon to be released could receive "a training for the duties and responsibilities of good citizenship" while relieving congestion at Bilibid Prisons in Manila. The establishment of the colony with the clearing of the forest and the erection of buildings and dwellings took a heavy toll in the first year, with "much sickness and many deaths" and numerous escape attempts, even as it also displaced indigenous Tagbanua. Succeeding reports mentioned improvement of living conditions and fulfillment of goals. Later many an observer would describe Iwahig Penal Colony as a "unique institution In 1909 January 1 the Paragua Province was renamed Palawan. The Capital was transferred from Cuyo to Puerto Princesa, the third capital. ( Philippine Commission Act 1363, enacted June 28,1905). Governor Edward Y. Miller succeeded Gov. Wright. Miller and served from 1911tol913. He conducted an extensive study of the needs of the province and set up a policy of attraction. His interest in the minorities resulted in the establishment of the farm school in Aborlan and the construction of schools through out the province. Gov. John F. Evans served as Governor. He hunted pirates and criminals and promoted agricultural development. Health centers started to spring up during his term. It is to be noted that during the terms of office of the American Governors great emphasis was laid on education. Because of these policies, the Americans succeeded in enforcing their will on the people. Gov. Herbert Dittricks was the last American Governor- General. In 1914, when World War I broke out., Ambrosio Pablo was appointed Governor, the first Filipino appointed as such by the Americans. In 1919, the first popular election for Governor was held. Vicente Sandoval from Coron was elected First Palawan Governor. He devoted most of his term laying the groundwork for a long-range development program of Palawan. From 1922 to 1925, Anastacio Manalo served as Governor. His most notable achievements were the construction of the present wharf in Puerto Princesa, the north and the south roads leading to the Iwahig Penal Colony and the capitol building near the wharf. In 1934, Palawan, under Governor Higinio Mendoza, filed a petition of secession from the Philippines and decided to attach itself permanently as a dominion of the United States. The resolution was an expression of the popular sentiment against the Philippine Government's indecision, apathy and inaction to help the Palawenos. Then Secretary of Interior Elpidio Quirino stopped the move on time. In 1936, Sofronio T. Espanola was elected Provincial Governor. The asphalting of Puerto Princesa roads and the construction of other roads; north and south, and the improvement of trade and commerce were attributed to his administration From March 22 to 23, 1940, then of Commonwealth President Manuel L. Quezon went to Puerto Princesa and Cuyo. It was the first time a Philippine President came to Palawan. XI. JAPANESE OCCUPATION, RESISTANCE MOVEMENT In 1941, Espanola resigned as governor and ran for Congressman. Gaudencio E. Abordo was appointed governor and served the unfinished term of Espanola until the outbreak of World War II On December 8, 1941 the Pacific War broke out. Many gallant Palaweos joined the USAFFE and saw action in Bataan, Corregidor and other battlefronts in the country, until the surrender of Bataan and Corregidor on April 9 and May 6,1942, respectively. On March 12, 1942 General Douglas McArthur and party took refuge at

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Tagawayan Island, Magsaysay Municipality in the Cuyo Island Group, during their escape from Corregidor to Mindanao. From there they proceeded to Australia by submarine, evading the tight Japanese cordon. Their mission was to reorganize and prepare adequately the American Liberation Forces in their return to the Philippines. It must be recalled that Bataan fell on April 9, while Corregidor, on May 6 On May 18, 1942 the Japanese Imperial Forces occupied Palawan 12 days after the Fall of Corregidor. (From: "The History of Palawan," by Diokno Manlavi). After the occupation of Palawan on May 18 by the Japanese Imperial Army, a civil government was established. Called Free Palawan, this Commonwealth Government was never surrendered to the Japanese by the intrepid Governor Gaudencio E. Abordo. It functioned while simultaneously supporting the Palawan Special Battalion until the end of the Second World War. It was easily and immediately reorganized and normally restored during the early days of the liberation. Palawan was one of the few local governments that had this distinction, On October 2, 1942 the infamous Patonga (Alcoba) Massacre was perpetrated. The Japanese brutally shot twenty innocent male inhabitants of this island for being suspected as guerillas. Two luckily escaped death to tell the gruesome tale. In the month of September, 1943 the Palawan Special Battalion composed of 1,154 officers and men was formed. The battalion was organized by Major Pablo P. Muyco, pursuant to a directive of Colonel Macario Peralta, dated August 13, 1943 On January 24, 1944 of Dr. and Capt. Higinio Mendoza, gallant Palaweos Guerilla Leader, was executed for his vehement refusal to support and cooperate with the Japanese Imperial Forces. His death was as glorious and heroic as that of Justice Jose Abad Santos in 1942, for the same principle. While Abad Santos is the country's hero of World War II, Dr. Mendoza is the Palawan Hero. Both are martyrs for a truly noble and patriotic cause. On December 15, 1944, one hundred fifty four (154) American Prisoners of War were burned alive inside a tunnel below the PC. Headquarters in Puerto Princesa. The Japanese poured gasoline and set the pit on fire. Twelve were known to have survived the macabre massacre, the worst and most inhuman, in Palawan history during the Japanese Occupation. On December 23, 1944, the battle of Araceli, the biggest raid of the entire guerilla campaign in Palawan was fought. The casualty lists as follows: 46 Japanese killed; 36 wounded. Guerilla losses: 3dead; 5 wounded. The brilliant strategy of attack in this area was planned by Lt. Andres Baaco. The incessant raids were launched by Company "B" under Capt. Tomas Timbancaya. On February 2 8, 1945 he 41st Division of the US 8 th Army landed simultaneously in Canigaran and Puerto Princesa Bay. Three guerilla guides, Lt. Antonio Palanca, Sgts. Pascual dela Cruz and Vicente Aizo were with the American Liberation Forces. The liberation of Palawan took place 1,177 days after the bombing of Pearl Harbor. In the month of March, 1945 the Provincial Commonwealth Government of Palawan under war-time Governor Gaudencio Abordo was re-established. It operated at Iwahig where most of the high ranking Filipino Officials who served in the Japanese Government were sent by the Americans as prisoners. XII. LIBERATION AND POST LIBERATION In 1946, Ramiro Castro was appointed Acting Governor to fill the vacancy left by Govemor Abordo who lost against Sofronio T. Espanola in the 1946 Congressional Election. In 1947 , Alfredo M. Abueg, Sr., became Provincial Governor. He was besieged by numerous concerns. The Province lay prostrate. Issues of war damage, rehabilitation, settlement of guerilla indebtedness, commerce, industry, public works and education faced his administration. After the war, migrants from all over the country continued to arrive in Palawan. A 24,000-hectare land settlement area in south central Palawan (what

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would become the town of Narra) was specifically established to accommodate settlers from Central Luzon displaced by the Huk insurgency or leaving other thickly populated areas of the country. Sponsored resettlement at Narra and voluntary resettlement throughout the island "has had initial effect on the coastal occupants, the Cuyonon, Agutaya, Cagayanon and Muslims who have staked permanent land development claims, but has had drastic displacing effects on the tribal population who have been pushed further up the mountain slopes, most of which areas are marginal for long-term settlement and sustained agricultural production." In 1949, the election for Congressman was a rematch between Abordo and Espanola. This time Abordo made it, but his election was contested by Espanola who after three years, was proclaimed Congressman-Elect. In 1956 Alfredo M. Abueg, Sr. sought re-election, won and served until 1960 as Governor. In 1960 Telesforo Paredes was elected Governor, the first Palaweo Governor to be re-elected consecutively. In the year 1962, a team of anthropologists from the National Museum led by Dr. Robert Fox unearthed fossils that were classified as those of "Homo Sapiens" at Tabon caves. Carbon dating established the find to be 22,000 to 24,000 years old. In the election of 1965 Ramon V. Mitra, Jr. was elected Congressman. He took active participation in National affairs and projected the image of Palawan in the right perspective. He was credited a number of important legislations for funding these is his legislation which made Palawan a first class province increasing its income. In 1967, Salvador P. Socrates became Provincial Governor, succeeding Governor Telesforo Paredes. He initiated steps never before undertaken by any governor. He-appointed deputy governors for every municipality and created several provincial government positions. He organized the PEDC, Palawan Economic Development Council, an agency to undertake the study, funding and implementing plans and projects designed to develop economic development in the province. GEOLOGICAL GEOGRAPHIC BASIS THE UNIQUENESS OF PALAWAN'S GEOLOGY The Philippine archipelago of 7,107 islands, 1,700 of which are in Palawan, lies in a triangular area of the West Pacific Ocean where three great tectonic plates of the Earth's crust meet. These are the Eurasian Plate, the Pacific plate and the Indo Australian Plate. The Philippine archipelago is divided into two major structural units: a stable region and a mobile belt. The southwestern part of the archipelago which embrace mainly Palawan and the Sulu Sea is the stable region. The rest of the archipelago is the mobile belt. Based on both inland and submarine morphology, the Philippine Archipelago is divided into four Physiographic Provinces, namely: 1) 2) 3) 4) Eastern Physiographic Province Central Physiographic Province Western Physiographic Province Palawan Physiographic Province

Thus, geology, Palawan is distinct from the rest of the Philippines . Furthermore, the Eastern, Central and Western physiographic provinces of the Philippines altogether constitute an elongated region bounded on both sides by deep trenches. They are composed of a series of ridges and troughs running generally parallel to the trenches. The Palawan Physiographic Province is separated from the three other provinces by a channel connecting the Sulu and Manila Trenches. The NE-SE trend of ridges and troughs in the Palawan Province is almost at

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right angles to the NS to NW-SE trends in the three other provinces. Thus, geology, Palawan is also a region of its own int he Philippine archipelago . The Eastern Physiographic Province is a belt limited on the east by the Philippine Trench and its northern extension, the East Luzon Trench. On the west, it is bounded the western limits of mountain ranges including Sierra Madre, Western Bicol Ranges, Samar Highlands and Diwata Range. The belt is divided into three subprovinces: Northern Sierra Madre, Bicol and Samar-Davao. The Central Physiographic Province is bounded on both sides by mountain ranges. It is composed of cordilleras, lowlands, troughs and small offshore basins. It is subdivided into the following subprovinces - Babuyan, Cagayan-Corbello, Central Luzon, Bondoc-Sarangani, Central Visayas and Cotabato. The Western Physiographic Province is composed of ridges and troughs, which collectively comprise the Western Segment of the Philippine Mobile Belt. The northern part is parallel to the Manila Trench, the southern part to Sulu Trench. The province is divided into three subprovinces: Zambales Subprovince, Antique Subprovince and Zamboanga-Sulu Subprovince. The Palawan Physiographic Province is composed of ranges, shelves, ridges and offshore basins forming the south western part of the Philippine Archipelago. It is divided into four subprovinces which are disposed parallel to each other along a NESW trend: The Palawan Subprovince, The Cuyo Shelf Subprovince, The Northern Sulu Sa Basin Subprovince and the Cagayan de Sulu Ridge Subprovince. Mainland Palawan Island is geologically divided into Northern and Southern Palawan by the Sabang Thrust which is a sinuous, low angle thrust intersecting the central part of the island. Carboniferous to Permain metamorphic units of quartz sericite schist, some graphite schist and greenschist facies and cretaceous to Eocene quartzofeldspathic sandstones, Shale and carbonaceous mudstone of turbiditic affinity underlies the northern fraction of Palawan. In the South fraction, cretaceous chert-spillite formations serves as the basal lithology for turbidite aprons and the ophiolite nappes. These basal formations of both fractions comprise up to the Reed Bank, the eastern protruding portion of a drifted marginal fragment of the protomainland China on the South Western edge of the Eurasian Plate. Unique in the Philippine Archipelago, Palawan is thus a microcontinent derived from the Eurasian continent. Rifting of the Southwestern edge of the Eurasian Continent began around 33 million years ago, then for the next 17 million years the rifted fragment that was to become Palawan drifted southwestward, to collide with the rest of the Philippine Archipelago. THE PALAWAN ARCHIPELAGO PHYSIOGRAPHIC PROVINCE OF THE PHILIPPINE

Palawan Subprovince: Palawan Subprovince includes the Busuanga Island Group, Palawan mainland, and the Balabac Island Group. The Busuanga Island Group which comprise the northern part of this subprovince includes the islands of Busuanga, Coron and Culion. These islands are generally mountainous with elevation rising over 650 meters. Ridges and valleys are generally oriented northwest with north-south kinks reflecting the complexly folded nature of the underlying Paleozoic sedimentary rocks. The drainage pattern is trellis and consequent to structures. Coron Island, which is entirely covered with massive limestone, exhibits a distinct karst topography. The nearby islets have generally the

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same topography as the major islands; notches in limestone up to five meters high are common, indicative of the magnitude of Pleistocene sea level changes. Palawan Island, which is the fifth largest in the Philippines, is mountainous along its entire length. Slopes on the west are shorter and steeper than those on the east. The larger bays are Ulugan and Malanut along the western coast and Island and Honda along the eastern coast. Two N-S lineaments, expressed as valleys and lowlands, one connecting Ulugan and Honda bays, the other, Malanut & Island bays, cut across the island. These lineaments make possible the division of the mainland into three segments. North Palawan is rugged with high mountain ridges. Among the prominent peaks are Cleopatra's Needle (1593 m), Pagdanan Range (663 m) and Mt. Kapoas (1021 m). The coastline is indented especially in the northern part, the most conspicuous being Malampaya Sound. Central Palawan, which extends about 130 km between Ulugan and Malanut bays, is also rugged and mountainous. Victoria Peak, the highest, is 1727 meters. A broad coastal plain, about 80 km long is on the east. Northward, this plain is cut off from the lowlands of Puerto Princesa by hill spurs; southward, it connects with the lowlands fronting Island Bay. On the west, drainage is by numerous short streams flowing to the northwest; on the east, rivers cut deep ravines and gorges and widenas they approach the coastal lowland. South Palawan consists of two mountainous areas. The larger area on the north which occupies nearly its full width, comprises Mantalingajan and Pulute ranges which are both very rugged. These ranges culminate in Mt. mantalingajan(2054 m), the highest peak in Palawan. The southern mountainous are is of lower relief. Highest elevation is over 1000 meters. The coastal plain on the southeast is widest south of San Antonio Bay where it extends inland for about 17 kilometers. It is made up of elevated coral reefs. Balabac Island is south of Palawan mainland. The northern part, which is of lower relief than the southern, is composed chiefly of lowlands reaching a maximum elevation of about 190 meters. The southern half is rugged, characterized by steep slopes and small narrow stream valleys. Highest elevation is 569 meters. Cuyo Shelf Subprovince Cuyo Shelf is the region enclosed by northern Palawan, Mindoro and Panay islands. The shelf includes the Cuyo Island Group. It was a peneplain subsequently covered by a mantle of sedimentary rocks. Water depths range from 55 to 110 meters. Northwest Sulu Sea Basin Subprovince This subprovince corresponds to the Northwest Sulu Sea Basin, a submarine depression along the eastern side of Palawan mailand. It is about 400 km long and 120 km wide. The depth of the sea floor reaches to more than 2000 meters. The northern half, with rolling submarine terrain, is shallower than the flat, southern part. The wide abyssal plain on the south which is about 2000 m deep is filled with a thick section of sedimentary rocks that is folded towards the middle of the basin. Cagayan de Sulu Ridge Subprovince Cagayan de Sulu Ridge separates the Northwest and Southeast Sulu Sea basins. It is about 500 km long and 30 km wide and connects the small reef islands of Tubbataha, Arena, Cavili and Cagayan de Sulu Island.

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MINERAL DEPOSITS OF PALAWAN Mineralization in Palawan is represented by the following five types of deposits: 1) Orthomagmatic 2) Hydrothermal vein type 3) Bedded manganese deposits 4) Cyprus-type massive sulfide deposits 5) Laterite deposits Orthomamatic chromite deposits in the Philippines are exclusively associated with Alpine-type peridotite-dunite-gabbro complexes in ophiolite terranes. Cretaceous to Eocene ultramafic complexes which are extensively distributed throughout Palawan host chromite and nickel deposits of varying grades and quantities. Hydrothermal vein deposits in Central and Northern Palawan yield mercury and antimony as the main products. The hydrothermal solutions responsible for the deposition of these are bodies could have migrated upwards through the postcollision tension fracture systems opened in the area during the Quaternary. Bedded manganese deposits occurring in Palawan is stratigraphically controlled and associated with pelagic chert units. The manganese is interbedded and apparently syngenetic with chert, some basaltic breccias and phyllitic mudstone deposits. Cyprus type massive sulfide deposits in Balabac Island and Brooke's Point are the major base metal mineralization essentially of copper in Palawan. The ore is confined in both the spillitic lavas and the associated pelagic units. Nickel laterite deposits in Palawan are the result of weathering of large ultramafic complexes thrust over the continental crustal basement. PETROLEUM DEPOSITS OF PALAWAN Petroleum occurs in tertiary sedimentary basins and the Philippine archipelago hosts 13 such structures of varying oil and/or gas potentials and hydrocarbon types. These are: Cagayan, Ilocos, Central Luzon, West Luzon, Bicol Shelf-Lamon Bay, Southeast Luzon, Iloilo-West Masbate, Visayan, Agusan-Davao, Cotabato, Sulu Sea, South Palawan-Mindoro; basins. The productive and most promising of these are predominantly in Palawan : THE NORTH PALAWAN-MINDORO BASIN is where Malampaya/Camago is and the largest sedimentary basin in the country. It is a broad platform in west central Philippines which covers an area of 13,000 square kilometers, 95% of which is offshore. The late mesozoic and Tertiary marine clastic-carbonate section of this basin's sedimentary formation has a thickness of over ten kilometers of which the tertiary fill probably attains as much as 4 to 5 kilometers. The basin is part of the Kalayaan-Calamian Microplate which rifted from the South China Continental margin. Four major structural or sedimentary provinces are recognized: Northwest Palawan Shelf, Cuyo platform, South Mindoro Basin and East Mindoro Depression. THE SULU SEA BASIN - this offshore basin consist of three troughs (or subbasins) separated by northeast-striking ridges. It has an area of 60,000 sq. km. and includes part of the continental shelf and slope of Northeast Borneo (Malaysia). The south western edge of the basin lies partly in Malaysian territory. The Balabac and Bancauan sub-basins which contain mostly Paleogene to Neogene shallow to deep

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marine clastics of over 5 km and 3 km thichness respectively. The Sandakan Subbasin contains over 9 km-thickness of mostly Neogene fluvio-deltaic clastics with minor reefal limestones, superimposed on backarc-deposited, deep marine sediments of Paleogeneage. THE SOUTH PALAWAN SHELF-REED BANK BASIN - This area includes the Reed Bank, Southwest Palawan Shelf (southwest of the Ulugan Bay Fault) and the Dangerous Grounds Area (in the Spratlys). The basin covers an area of 100,000 sq km, 90% of which lies in the South China Sea. A large portion of the basin is part of the Kalayaan-Camalian Microplate which drifted from the South China continental margin. Basin fill is composed of Upper Mesozoic to Quaternary marine clasticcarbonate sequences. Clastic sections include quartzose and arkosic sandstones. Deformation is dominated by extensional block faulting and tilting. In the Reed bank area, northeast-southwest trending rifted fault blocks generally tilt to the southeast. Neogene compressional features (thrust and strike-slip fault) overprint to offshore southwest Palawan area. This basin is considered a rift basin modified by collision or compressional tectonics. BIOLOGICAL BASIS (Flora and Fauna of Palawan) The province of Palawan is one of the 15 Biogeographic Zones of the Philippines identified by the Department of Environment and Natural Resources (DENR) and the United Nation Environmental Program (UNEP) with unique flora and fauna (DENR-UNEP, 1997). Palawan together with the Calamian Islands, Balabac, and neighboring smaller islands, collectively comprise the Palawan Faunal Region. The region constitutes the easternmost extremity of Sunda Shelf and is separated from the rest of the Philippines by deep-water channels i.e. the Wallace line. This is the reason why Palawan has a lot of endemic species of both flora and fauna. The Philippine stated policy on biodiversity is to protect and conserve it (flora and fauna) ex situ and in situ, and promote its equitable use. This means keeping bioresources intact where found or place them in special facilities if it is necessary to ensure their protection. (Malayang, 1999). For Palawan where a number of endemic species are found, it has to be preserved and to be conserved in order to maintain a healthy ecosystem. FLORAL COMPOSITION In terms of flora composition, Palawan is considered as a tropical paradise. It is one of the most diverse and rich islands in the Philippines, with an estimated 3,000 3,500 flowering plant species, mostly endemic to Palawan. This relatively high number of plant species and a proportionately high endemism can be attributed to the geological, climatic, adaphic and biological features of the island (Madulid, 2002). Palawan harbors several kinds of vegetation and these occupy specific niches in the island. These are: mangrove, beach vegetation, limestone, forest over ultramafic soil, lowland evergreen rainforest, lowland semi-deciduous forest, and submontane forest. FAUNAL COMPOSITION Considering as one of the last frontiers of the tropical rainforest not only in the Southeast Asia but also in the world, Palawan has faunal composition both in the

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mainland and its surrounding islands which are either rare, unique or endangered, most of which are not found in other areas in the Philippines nor anywhere else in the world. In fact, Palawan faunae had contributed much to the list of mammalian fauna of the Philippines which otherwise would have been a short one (Diokno, 1983). Palawan has a distinct and much richer fauna than those of the other islands put together. It is theorized that such faunistic composition in Palawan is attributed to the migration of terrestrial mammals from the Indo-Malaysian Peninsula and Asia Mainland via the land-link between Borneo and Palawan. This phenomenon explains why many of the animals in Palawan like the pangolin, the mouse deer, the porcupine, the stink badger and the small-clawed otter are likewise found in the Himalayas, Indonesia and Malaysia, the latter two being situated in the Sunda Shelf. It is, moreover, believed that in spite of the wide variety of wildlife species that reached Palawan, very few are able to progress further to the other islands. PALAWANS BIODIVERSITY A. Palawan is globally recognized and the UNESCO has bestowed upon Palawan three distinct honors: 1. Declared the whole island of Palawan as a Man and Biosphere Reserve in 1990. 2. Declared as World Heritage Sites St. Pauls Subterranean River which has one of the longest underground river in the world. Tubbataha Reef National Marine Park for the highly diverse collection of fishes and other marine life. B. Philippine government declared the whole province of Palawan as Fish and Wildlife Sanctuary in 1967. C. Palawan is one of the seven Endemic Bird Area in the Philippines. D. The Tabon Caves is called the cradle of Philippine civilization by Dr. Fox, an anthropologist who discovered the 22,000 year old fossils believed to be the ancestors of the present indigenous peoples of Palawan. E. And just recently, in 2002, the Philippine Biodiversity Conservation Prioritysetting Program categorized Palawan as a Conservation Priority Area. F. It is categorized as a zone with the second highest biodiversity in the Philippines. In terms of the quality of the ecosystem, Palawan has the best quality of biodiversity because almost half of its area is of high biodiversity according to a Parks And Wildlife Bureau (PAWB} report of 1998. G. The whole region was declared Fauna and Flora Watershed Reserve. This includes a variety of protected areas, national parks, wilderness areas, experimental forests reserves, game refuge, wildlife sanctuaries, research sites, tourist zones and marine reserves. THE BIODIVERSITY OF PALAWAN Informant Gap. - Anyone interested in the conservation of biodiversity is faced with the problem of accurate and current information about wildlife, the forests and ecosystems and the environment in general.

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1. 2. 3. 4. 5.

There is a sore lack of important basic knowledge particularly about the biology and ecology of Palawan wildlife species. When available, some information is over a hundred years old. Information on Palawan biodiversity is limited, incomplete and scattered among various institutions and individuals. Existing information is outdated and the status of previously recorded species needs updating in terms of their biology, distribution, and abundance. Only by continuing inventory work will the empty forest syndrome be monitored. At present the best available reference is the Philippine Biodiversity Conservation Priority-setting Program. Handbook and the Surublien: Strategies to Conserve Palawans Biodiversity of the Conservation International Philippines. We acknowledge use of these references in the discussion on biodiversity conservation of the Philippines and of Palawan.

PHILIPPINE POLICIES ON BIODIVERSITY The Philippine government stated policy on biodiversity is clear: it seeks to protect, conserve and promote its equitable use (DENR-UNEP 1997; NIPAS act 1992). This means (1) keeping living resources intact where they are found or taking them to appropriate facilities if it becomes necessary to protect them, (2) sustainable utilizing the countrys bioresources, and (3) equitable sharing the benefits of biodiversity among all Filipinos, now and into the future. The purpose of the policy is to get the maximum public good from biodiversity. However, Philippines biodiversity, as stated, is caught in three complication. 1. With the countrys policy on adhering to trade liberation which is putting pressure on agriculture and domestic industry to deploy all means and technology to made them competitive. The policy has increased domestic demand for imports including of plants, planting materials and animal and animal products. It is also raising the pressure on local farmers and manufacturers to develop and deploy biotechnology to improve their competitiveness. The policy is raising the exposure of local biodiversity to new varieties, strains and other biological materials from outside Palawan and outside the country, which may cause them to lose some of their qualities, and open local bioresources to being modified for narrow economic gains. 2. With the policy on devolution that shifts environmental governance away fro central government, instead, reposes it on local governments, civil society, and communities. The policy has brought about two effects on biodiversity: (1) it is proliferating the decision centers on its conservation and management, and (2) it is spreading decisions making across different levels of political and economic governance mechanisms in the country. While these are consistent with the democratization strategies laid out in Philippine agenda 21, these have, as well, made biodiversity decision making prone to become confusing (Sajise, 1997). It is likewise opens the issues on biodiversity to getting mixed up with the fights of traditional opposing environmental and economic interests up and down the different centers of governance in the country (from national, regional to local). 3. With the pressure on government for fiscal discipline. The government has been persistently hard pressed on its budget. It has taken measures to curb

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spending in the long term. Among these is mandatory reduction of the bureaucracy. Attrition and retirement have not been replaced in the last 7 years. This has curtailed the governments ability to deploy a sufficient level of personnel to carry out biodiversity protection and conservation (Malayang, 2000) The first relates to threats to biological and ecosystems quality in the country. The second is about the cohesiveness of the governance of biodiversity. The third relates the threats to the capability of the present government to protect and conserve biodiversity. PALAWANS DISTINCTION AS AN ECOLOGICAL PROVINCE Palawan has been called the last frontier because of its preserved ecological and bio-diversity attractions: bountiful forests, mineral and marine resources. There are 7 protected areas: ecologically fragile terrestrial, aquatic, and marine areas needing special protection: (1) the Ursula Island game refuge and bird sanctuary; (2) the Malampaya Sound protected land and seascape; (3) the El NidoTaytay resource managed area; (4) the Calauit game preserve; (5) the Palawan flora, fauna, and watershed reserve; and the two UNESCO World Heritage Sites: (6) the Puerto Princesa subterranean river national park; (7) the Tubbataha reefs national park. In the last two decades provincial and city officials have meticulously safeguarded and preserved these resources. The Strategic Environment Plan for Palawan (Republic Act 7611), was promulgated in 1983 with the following declaration of policy: o o o To assist and support the implementation of plans, programs, and projects formulated to preserve and enhance the environment and at the same time to pursue the socio-economic goals of the country; To support and promote the sustainable development goals of the province; To promote and encourage the involvement of all sectors of society in resource management, conservation, and protection.

The administrative machinery for the governance, implementation and policy direction of SEP is the Palawan Council for Sustainable Development (PCSD). A regular professional support staff was created under section 20 of RA 7611, the Palawan Council for Sustainable Development Staff (PCSDS). The SEP Act and PCSD sets Palawan apart from other provinces and emphasizes their role in guarding and preserving the ecological uniqueness of Palawan. The SEP Act provides for the rules, while the PCSD implements the rules. CONCLUSION In recognition of its important wildlife floral and faunal resources, the entire province of Palawan with 1,474,576 hectares was proclaimed as a game refuge and bird sanctuary under Presidential Proclamation No. 219 on July 2, 1967. But the question remains: How does a game refuge/bird sanctuary or wildlife reserve, for that matter, best fulfill its role? Palawans flora and fauna faces many threats. They are matters that can be addressed by good science and good technical management of ecological conditions. Often overlooked are the potential problems that await to put biodiversity resources at risk due to policy inconsistencies and tensions. They endanger biodiversity by

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curtailing the ability of society over their interest that opposes biodiversity protection and conservation. This paper outlines only some of the possible debilitations of Philippine biodiversity policy, which a cursory examination may immediately reveal as obvious. What the writer hopes to achieve, ultimately, is to arouse some interest for a more comprehensive assessment of Palawans biodiversity policy to identify what might be done about it now to prevent serious risks to Palawan and Philippine biodiversity in the future. LEGAL BASIS NATIONAL LAWS The establishment of a Federal State of Palawan is replete with legal basis, which, if taken in totality justifies the initiative that Palawan form itself into a Federal State. It is common knowledge among us that our 1987 Constitution provides in Section 25, Article II (Declaration of Principles and State Policies) that: The State governments. shall ensure the autonomy of local

Consistent with the above provision, the 1987 Constitution in Section 2, Article X (Local Government) has declared that The territorial and political subdivisions shall enjoy local autonomy. Section 3 of the same Article mandates that: The Congress shall enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization x x x. The Constitution has likewise granted local governments the power to create its own sources of revenues and to levy taxes, fees and charges which shall accrue exclusively to the local government concerned (Section 5, Article X). It is also worth mentioning that our Constitution has prescribed the creation and procedure for creating autonomous regions in Muslim Mindanao and in the Cordilleras (Section 15, Article X). The above provisions in the Constitution clearly show that the autonomy of local governments as well as decentralization have been recognized by the State itself and that this idea is no longer new to us. Pursuant to Section 3 of Article X of the Constitution, the Congress enacted the 1991 Local Government Code which has many innovations demanded by decentralization.

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Among the general features of the Local Government Code are the following: 1) Local Autonomy- transformed LGUs into self-reliant communities thru a more responsive and accountable local government structure instituted thru a system of decentralization. 2) Decentralization- grants more powers, authority, responsibilities and resources. 3) Decentralization program- transfer of responsibility for the provision of basic services and facilities; -transfer of regulatory functions; -improved national government-local government relations. 4) Basic services and facilities devolved to LGUs. It can be said then, that the enactment of the Local Government Code in 1991 is a prelude to federalization. Jose N. Nolledo, a prominent Palaweo, in a Speech addressed to the Constitutional Commission which drafted the 1987 Constitution made the following observations that show the merits of authentic decentralization: If the wealth of the nation must be equitably diffused, so must political power be shared and dispersed. A shared responsibility in a decentralized government heightens access of the people to decision and policy-making process and enables the people to end their passivity, thus making them truly self-reliant as well as enabling them to achieve maximum freedom, peace and order. Decentralization encourages the people to unleash their creative energies. It destroys the capital city syndrome as it overcomes the psychological dependency of local areas upon the center of government. Thus, it can be well said that centralization which emphasizes the unjust maintenance of the status quo is an idea merely of order while decentralization which promotes entrepreneurship and innovation is truly a concept of freedom.

Other Bases: 1) Republic Act No. 5185 (Decentralization Act of 1967) 2) Republic Act No. 2264 (Local Autonomy Act) 1959 The right of the people to self-governance is not without international basis. INTERNATIONAL LAW

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Article I of the United Nations Charter states the Purposes and Principles or common ends of the Charter to which the member states subscribe. It is expressed in paragraph 2 thereof that one of its purposes is as follows: To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace. The above raison d etre of the United Nations manifests recognition of the right of peoples to self-determination. Such right is considered as an effective means of fostering freedom, peace and development. If peoples are allowed to make decisions for themselves, we are promoting and encouraging respect for human rights and for fundamental freedoms. The establishment therefore of an independent Palawan State is in keeping with upholding the Palaweos right to self-determination- a principle of international law adhered to by members of the United Nations. Corollary to the right to self-determination is the fundamental right of a state to sovereignty and independence. As a sovereign state, a state has the supreme power to command and enforce obedience, the power to which, legally speaking, all interests are practically subject and all wills subordinate (Garner, Introduction to Political Science, 238). In international law, it is the attribute that enables the state to make its own decisions vis--vis other states and vests it with competence to enter into relations and agreements with them (Isagani Cruz, International Law, 100). On the other hand, independence means the right of national self government, the freedom of a state from control by another state, or the right of a state to direct both its internal and external affairs without dictation or interference from others. In Article 2, paragraph 4 of the Charter, it is provided that all members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state . This is an express recognition of the right to independence of a state. Moreover, in the Declaration Regarding Non-Self-Governing Territories in Chapter XI, the members of the United Nations assume in these territories the obligation to develop self-government, to take due account of the political aspirations of the peoples, and to assist them in the progressive development of their free political institutions, according to the particular circumstances of each territory and its peoples and their varying stages of advancement . (Article 73) The right to independence being a natural aspiration of peoples and a necessary consequence of the right to self-determination, gained international recognition and support. It is by adhering to the peoples right to independence and self-determination that freedom is won. Thus, the Charter of the United Nations even encourages movements toward independence. On the national level, the initiative to establish Federal State of Palawan finds support in the provisions of our 1987 Constitution which empowers the House of

22

Representatives to adopt and propose amendments thereto subject to the ratification by the people. (Article 17, 1987 Philippine Constitution) Thus, it can be said that the creation of a Federal State of Palawan is backed by legal basis. POLITICAL BASIS The enactment of RA 7160 or the Local Government Code of 1991 was in accordance to a declared constitutional policy that the state shall ensure the autonomy of local governments. The Code decentralized governance in the Philippines. Together with other historical records, the Local Government of 1991 sets the precondition for the adoption of Federalism in lieu of the existing unitary system in the country. In the year 2000, a series of regional conference on Federalism were held in various parts of the country. It was launched by Sen. Aquilino Pimentel, the principal author of the Code. In the proposed federal Philippines, Palawan is included in Western Visayas region, one of the eleven states proposed by the Movement for FederalParliamentary Philippines by the year 2010. Recently, in her SONA, President Arroyo expressed determination to effect amendment to our present Charter. Moreover, it appears that she is in favor of the adoption of a federal parliamentary government vice our unitary-presidential system at present. President Arroyo signed E.O. No. 429 providing for the transfer of Palawan from MIMAROPA region for Western Visayas region. If closely examined, such act is geared towards the laying of the ground for a federal Philippines. Initially, local leaders and concerned Palawenos were surprised. Nonetheless, they manifested opposition to E.O. No. 429. Given such predicament, Pres. Arroyo deferred its implementation. This aroused the sentiment of the Palaweno leaders and gave them the opportunity to have a united stand holding that if the Philippines is federalized, Palawan would be better off as a federal state. For its part, the provincial board passed an ordinance calling for the creation of Palawan Statehood Movement but opposed to the proposed division of Palawan into several provinces. If made a federal state, the provincial board contends that there is no need for such divisions. However, the proposal to divide Palawan into at least 4 provinces or districts is not only realistic but it is also in accord with the tenor of federalism. Historical records show that the province was divided into two provinces during the Spanish period, purposely to improve governance in the province which was hindered by poor and inadequate transportation and communication due to its archipelagic nature. In the 11th Congress, the representatives of the province also proposed the division of Palawan also to improve governance, owing to its geographic nature. Given its total land area of nearly 1.5 million hectares, and as an archipelago by itself, composed of 1,768 islands and islets, the division of Palawan into provinces/districts once it becomes a federal state is inevitable.

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We concur with the proposal to divide the province into four districts/provinces; namely 1) Island Palawan; 2) Northern Palawan; 3) Southern Palawan; and 4) Puerto Princesa City. In addition to these a special economic zone for Kalayaan must also be created to secure our rightful share over resources and minerals in the area. If by Political basis, we mean political will on the part of local political leadership and participation or willingness of the Palawenos to make Palawan a Federal state, We believe this important ingredient has been satisfied. Since its inception, there have been multi-sectoral participation in the dissemination of information about Palawan statehood. Concerted efforts have been done by the provincial government, institution of higher learning, local media, a group of concerned citizens and other civil society groups to inform Palawenos of the proposed constitutional amendment or Charter Change and its implications to their opportunities of maximum progress and development under a Federal-Parliamentary Philippines. SOCIO ECONOMIC BASIS MIGRATION PATTERN Contemporary Palawan is a migrant province. It is the basic proposition in discussing the socio-cultural profile of the province. Its early inhabitants, the Bataks, Palawan, Tagbanua, Agutaynon, were later followed by the Muslim settlers (Molbogs and Jama Mapun from Mindanao, Sulu and Borneo) who occupied the southern portion of the island of Palawan. They were the first migrants. The katutubos were eventually pushed upland, but with inter-actions with the Muslim settlers. Settlers from Madia-as came next. Cuyo because of its proximity to Panay, was supposed to have been inhabited by one of the mythical ten Bornean Datus. With the coming of the Spaniards, the Calamianes was the first area to be under its influence, Cuyo gaining prominence when the Agustinian Recollects started the Christianization of Palawan in 1644. Eventually exiles and deportees came in, again with Cuyo being favored because of its abundance in food and security from Muslim raids. It became the temporary home of self-exiles from Spain in fear of being decimated by the tumultuous conditions in Europe. From their forbears came the Ponce de Leon family linking their ancestry to a Duke in Spain, the Reynosos, the Rodriguezes, the Fernandez, etc. A number of these families are now the politicoeconomic, and social elites of Palawan. Chinese merchants were addition to the growing trade in the area. FilipinoChinese business men now have a major share in the private business of Puerto Princesa. They are into construction, hardware, drugstore, food, hotels, resort, and a mall. During the American period, migrants from Luzon and the Visayas started coming in even with the scourge of Malaria, and the negative image of Palawan being the home of prisoners (colono) in Iwahig and lepers (leproso) in Culion. After World War II, more settlers came in, preferably those who migrated to Narra under the Magsaysay plan of giving land to farmers in Luzon. The entry of Visayans were lured by the bountiful fishing industry in Palawan. In the 1980s expats

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from Europe and the United States became permanent residents, married Filipinas, and added to the migrant population of Palawan. The short history of migration has a number of lasting consequences: (1) population growth steadily increased through the years; (2) adaptability to the environment has been easy with the absence of entrenched indigenous groups; (3) culture has not been dominated by one group despite the apparent ascendancy of Cuyunon culture. A. POPULATION GROWTH The increase in population of Palawan has been dramatic. From 35,000 inhabitants in 1903 the population increased to 56,360 in 1948, to 192,540 persons in 1960 (Eder, 2004,633). The Human Development Report of the Province of Palawan for the year 2000 showed a rising trend of the population between 1975 and 2000. Where in 1975, the population was 300,065, it increased to 528,287 in 1990. It reached 640,486 in 1995. By 2000, the number rose to 755,412. At present, the province has a population of 834,685 (projected). Population growth has, however, had an effect in changing the landscape of Palawan from lush forests to an expanding agricultural area. In-migration from one municipality to another, with Puerto Princesa as convergent point, has increased the level of poverty in the Province. The National Statistical Coordination Board (NSCB) Resolution No. 1. Series of 2003 issued by the NSCB Executive Board approved the Official Poverty Estimation Methodology for the computation of poverty statistics on January 15, 2003. The study was jointly done by the NSCB and World Bank. It was shown that a person in Palawan needed a monthly income of at least P654 in 2003 to satisfy his/ her basic food requirements. This was P3 higher than in year 2000. Comparable to national level, a person needs a monthly income of at least P678 in 2003 to satisfy his/her basic food requirements. The monthly per capita food threshold in Palawan is just P24 lower than the national level. A person in Palawan needed to earn a monthly income of at least P967 in 2003 to satisfy his/her basic food and non-food requirements. A person in the national level, meanwhile, needs at least P1, 022 in 2003 to satisfy both food and non food requirements. The monthly per capita poverty threshold in Palawan is P55 lower than the national poverty threshold. When we talk about subsistence incidence, 19.5% families in Palawan were food poor in 2003 or did not earn enough to satisfy the minimum cost of basic food needs. This was 7% higher than in 2000. The poverty incidence in Palawan in 2003 was 43.1% which is 18.7% higher compared to 2000 figures. Almost half of the population of Palawan is poor or did not earn enough to satisfy the minimum cost of basic necessities. The study has shown that the main city does have a good standard of living, but getting the average of all the municipalities, figures in Puerto Princesa City has been pulled down. Other municipalities do have high poverty incidence due to the presence of indigenous people and migrants. Indigenous people are said to have a different standard of living because of their simple lifestyle, thus having a minimal necessity. Migrants, moreover, are suspected to have contributed much to the poverty incidence since most of those people who migrated here belong to the poor families who were looking for better life.

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B. ADAPTABILITY TO THE ENVIRONMENT The settling in of Palawans frontier was a long, and complex process interconnected to the filling in of other frontier territories in the Philippines. Migrants from Cuyo to the big island led other ethnic groups in the early 20 th century, but by mid century, a large group from Luzon and the Visayas immigrated to Palawan. While there is a tendency to brand migrants as dayu, no class distinctions are involved in becoming Palawenos between the older residents and the new immigrants. The Community Based Monitoring System (CBMS) migration survey of origin between 1995 to 2000 had 37.17% coming from one municipality to another; 28.99% from the Visayas; 22.97% from Luzon; and 10.74% from Mindanao. These figures tell us the heterogeneity of the population of Palawan, with ethnic groupings easily discernible. However, no one ethnic group has been dominant over the other, making it easy to first mix socially with the same ethnic group, i.e., the Ilocanos, Bicolanos, Ilonggos, Cebuanos, etc., and later to be a Palawenyo. That tagalong has been widely spoken among all groups since the 60s, is one uniting factor for all Palawenyos despite fifty two languages and dialects spoken. A lot of intermingling has occurred in the process of settling down. Palawan had no long established, culturally homogenous lowland population (Eder, 2004,633) Even in the political scene, leaders with Cuyunon background are popular, but the political mix is quite varied. C. HEALTH AND NUTRITION Recent development in the health sector call for new strategies toward a better and more sustainable health care delivery system. RA 8549 places the Ospital ng Palawan under the administrative and technical supervision of the Department of Health. With the renationalization of the PPC Provincial Hospital, the Provincial Government has new options in the horizon. Under the New Generation of Hospitals and Clinics of Palawan Programme, the provincial government plans to embark on the establishment of a new medical center in Puerto Princesa City and a North Provincial and South Provincial Hospitals of Palawan. After seven years of operation, the Alay sa Kalusugan ng Palawan has finally come to a close. A special program created in July, 1993 by the former Gov. Salvador P. Socrates, Alayka has successfully laid the foundations for a community-based health program. Its achievements include the establishment of 101 functional Barangay Health Committees and fourteen (14) Executive Barangay Health Committee. It has helped communities plan and implement community-initiated projects such as oplan linis, toilet bowl-making and construction, drainage, compost pits and others. It has equipped Palaweos with skills to engage in income-generating projects such as basket weaving, goat raising, dressmaking and swine dispersal. Alayka has also conducted massive IECs on health care and management using simple but effective tools of communication. Among its best practices are the Community-Based Malaria Control Program in Barangay Mangingisda in Puerto Princesa City which has become a model for other

26

barangays who want to undertake similar programs in their communities. In fact, most of the activities undertaken by the Kilusan Ligtas Malaria, the provincewide community-based malaria control program, was patterned after the successes attained by this small community. The non-formal education program for the indigenous peoples in 1996 in Barangay Malihud, Bataraza has responded to the basic and functional literacy needs of the natives. It has increased awareness of indigenous peoples on proper health care and sanitation and empowered them to solve family, tribal and community problems and needs. About 165 indigenous peoples benefited from the program which won for Alayka Palawan the HAMIS (Health and Management Information System) silver award in recognition of its outstanding achievement in health care management through innovative schemes that exemplify efficiency, effectiveness and equity. Mr. Anastacio A. Villapa, who spearheaded the project, won the Most Outstanding Non-Formal Education Worker in the 1999 National Literacy Awards. Alayka Palawan has also provided communities with professional health workers through the Stepladder Program which was adopted in Palo, Leyte. Identified students who are willing to become health workers in their respective communities are given the opportunity to become licensed midwives, nurses and even doctors. Recognizing the gains and achievements of Alayka Palawan, the Sangguniang Panlalawigan passed resolution 4625-01 supporting and endorsing the integration of the Community-Based Health Program into the health care delivery system of Palawan. Corollarily, thirteen Rural Health Units have also expressed support to the integration of CBHP activities into the RHU program. A Provincial Malaria Control Program is now being established to effect the integration of the Kilusan Ligtas Malaria and other malaria-control programs into the mainstream of the health service delivery system. KLM was launched in 1999 as the provincial governments response to eradicate the disease that has long been a scourge to Palaweos. Assistance from the Japan International Cooperation Agency and Shell Philippines Exploration, B.V. was used for the procurement of equipment and supplies such as microscopes and training of microscopists while the provincial government allocated an annual counterpart fund. In a period of two years, KLM carried out its mission through an intensive information, education and communication campaign; organization of communitybased malaria control plans in every Barangay and the creation of technical working groups tasked to assist in the implementation of malaria control activities. It distributed 324 microscope provincewide and trained 344 barangay microscopists for the effective identification of malaria patients through blood smear and adequate treatment of all malaria parasite-carriers. These efforts have contributed to the decrease in malaria incidence from 1999 to 2001. Devolution has enabled the Provincial Health Office to strengthen public health services i.e., immunization of infants and young children against leading diseases and the administration of vitamins and micronutrients to deal with deficiencies among children and women. A referral system has been put in place to meet the needs of clients from the Barangay Health Station to the Rural Health Unit to the District Hospitals and Provincial Hospital.

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The foreign-assisted Integrated Community Health Services Project also provides benefits such as health care financing, hospital regulation and renovation of facilities. Meanwhile, the Pangkalusugang Kooperatiba ng Palawan assists in the procurement of medicines and medical supplies, acquisition of additional hospital equipment, and upgrading the salaries of medical personnel. For its efforts, the provincial government received the Gems and Jewels for Devolution award from the DOH in 1996. The mobilization of 525 community volunteers known as the Barangay Environment, Agriculture and Nutrition Scholars recognizes the inter-relatedness of improved nutritional status with food security and a well-preserved environment. Through its campaign and livelihood projects, the Provincial Nutrition Action Office and these volunteers have successfully reduced the malnutrition prevalent rate in Palawan form 6.15 percent in 1999 to 5.03 per cent in 2001. The municipalities with lowest MPR are San Vicente 1.72%; Taytay 2.45% and Quezon, 2.82%. D. CULTURE Is there a distinct Palawan culture? We argued earlier that there is the seeming ascendancy of Cuyonon culture because the Cuyonon language is still used among the senior members of Palawan society. A study made by Dr. James Eder, perhaps the foremost anthropologist on Palawan culture, seeking to find out who the Cuyonen are in relation to ethnic identity provides the clue to an aspect of Palawan culture through a study of the Cuyonon language. Eder claims that the Cuyonon language is the main distinction between Cuyonen and other ethnic groups. Eders study showed that economic position and social distinction were factors in the use of Cuyonon language to their children. While the Cuyonon language was widely spoken in the household in the rural areas and in fishing communities during early times, today this has changed Rural dwelling Cuyonon speak Tagalog to their children, while the more well off urbanites speak English to their children, with a few prominent families speaking Cuyonon to their children for cultural survival since Tagalog can be learned in the streets and English in schools. There is thus an attempt to preserve Cuyonon culture through ethnic markers or culinary tradition. Sunday Mass in Cuyonon, or the music of Sinica are attempts to promote Cuyonon culture. Keeping with Cuyonon-ness is considered in the same level as being Palawenyos opens the door for other cultural traditions to set in. The layers of a Palawan culture are the katutubo, the Islamic, the Cuyonon, and the contributions from other migrants, inter-acting with the conquerors and shaping up a contemporary Palawan culture. The ascendancy of Tagalog and Visayan cultural influences in the 1960s marked the beginning of the growth of an emerging popular culture, still growing to date. Cuyonon culture, however, serves as foundation of that emerging Palawan culture. Cuyunon culture establishes the continuity of cultural growth but opens the way of growth.

FINANCIAL PROFILE Once Palawan is considered to be a federal state, all national agencies will be solely supported by the state itself. It means that all revenues will go the state but it

28

has to shoulder its expenses as well. Table 1 presents the national agencies revenues and expenditures. Table 1. Revenues and expenditures of the national agencies in Palawan Agencies Revenues PPA 38,869,836.03 DENR 2,787,386.42 BIR 450,388,356.76 Bureau of Customs 3,230,381.00 ATO 8,969,762.55 BFAR 1,330,881.00 DTI 712,103.75 DOH 6,932,833.18 DAR 615452.20 City Tourism N/a Note: 2004 figures N/a Not available Expenditures 40,181,466.86 75,569193.68 N/a 1,345,706.21 23,141,211.63 N/a 1,854,844.00 24,683,633.00 38696916.00 3,700,000.00

Given the above figures, assuming the BIR and BFAR do have high expenditures, only 1 out of 10 national agencies can sustain itself from its revenues. The Bureau of Customs is the only national agency that earns revenues higher than its expenditures. National agencies cannot provide adequate income for its expenses, unless the government provides for them. If Palawan becomes a state, it should have sources of income that will sustain them. ECONOMIC POTENTIALS PART 1: SHARE FROM NATIONAL WEALTH Background: The 1987 Constitution provides full autonomy for Local Government Units to govern independently as well the right to share from the proceeds of its own natural resources more known as the national wealth. However, such mandate is on paper only. Imperial Manila still controls its governance and not only regulates but holds back whatever share from the proceeds in all national wealth as mandated by the 1987 Constitution and exiting laws. This kind of environment does not exist today without any relief in sights unless a straightforward reform or true changes in the system will be put in place. The province of Palawan has been deprived of its shares from the proceeds for its natural resources not only in oil and gas but also in mining operations and marine resources We will present a blue print for the economic potentials that can generate revenues for Palawan even at present system and can be the biggest source of revenue for Palawan as a unitary Federal State. EXISTING LAWS PROVIDING FOR PALAWANS SHARE FROM NATIONAL WEALTH:

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1) Section 7, Article 10 of the 1987 Constitution provides that the local government units shall be entitled to an equitable share in the proceeds of utilization and development of national wealth within their respective areas, in the manner to be provided by law, including sharing the same with the inhabitants by way of direct benefits. 2) Section 289 of R.A. 7160 or the Local Government Code provides that LGUs shall have an equitable share in the proceeds derived from the utilization and development of the national wealth within their respective areas, including sharing the same with the inhabitants by way of direct benefit. 3) Section 290 of R.A. 7160 provides that LGUs shall, in addition to the internal revenue allotment, have a share of forty percent (40 %) of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interest, or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction. 4) Art. 390 (b) of the Local Govt Code states that: The allotment representing the share of each LGU shall be released without need of any further action, directly to the provincial, city, municipal, or Barangay treasurers, as the case may be, on a quarterly basis within five (5) days after the end of each quarter, and which shall not be subject to nay lien or holdback that may be imposed by the National Government. OIL AND GAS PROJECT: In the present environment, the province of Palawan has not enjoyed its share from the proceeds of the operation of existing oil and gas production located off shore of Northeast Palawan. The contention of denying Palawan its share that there are no specific provisions under any existing laws that defines the territorial boundary of a province except that there is only a 15 kms. Municipal boundary as specified under the local government code. While offshore oil and gas fields are more than 45 kms off shore of the nearest island or islet of Palawan. To solve this issue is either another law to be passed by the current congress or through the charter change which is now being pushed of which a federal parliamentary system is proposed to replace the existing system.

PROVEN OIL AND GAS RESERVES: FIELD RESERVES PRODUCTION

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S C 14 14 37 38 38 NIDO MATNILOC SAN ANTONIO MALAMPAYA MALAMPAYA CONDENSAT E TOTAL (Oil) TOTAL (Gas) TATAL (Condensate )

INPLACE

RECOVERABLE

PRESEN T DAILY RATE 384 BPD 330 BPD 1 MMSCF 307 MMSCF 15 MB

HIGHEST DAILY RATE 40,000 BOPD 10,600 BOPD 1.2 MMSCF 307 MMSCF 15 MB

TOTAL TO DATE 18 MMBO 12 MMBO 3 BCF 249 BCF 13 MMB

START PRODUCTIO N 1979 1982 1994 2001 2001

57 MMBO 35 MMBO 4 BCF 4 TCF 169 MMB 92 MMB 4 TCF 169 MMB

17 MMBO 11 MMBO 3 BCF 3 TCF 118 MMB

28 MMB 3 TCF 118 MMB

30 MMB 252 BCF 13 MMB

SERVICE CONTRACTS WITH PREVIOUS PRODUCTION AND PLANNED FOR REOPENING RESERVES S C FIELD IN-PLACE (MMBO) 39 MMBO 472 MMBO 115 MMBO 311 MMBO 937 MMBO 1029 MMBO 4 TCF RECOVERAB LE (MMBO) 12 MMBO 142 MMBO 35 MMBO 27 MMBO 216 MMBO 244 MMBO 3 TCF PRESEN T DAILY RATE PRODUCTION HIGHEST DAILY RATE 2,630 BOPD 6,000 BOPD 2,500 BOPD TOTAL TO DATE 11.2 MMBO 8.5 MMBO 0.4 MMBO 1.9 MMBO 22.0 MMBO 52 MMBO 252 BCF START PRODUCTIO N 1991 1996 1988

6 A 14 14 38

CADLAO WEST LINAPACAN GALOC MALAMPAYA OIL TOTAL GRAND TOTAL (Oil) GRAND TOTAL (Gas)

Case Study for Malampaya Gas Project: The table below shows that sharing of revenues under Service Contract 38 and Administrative Order 381 of former President Ramos in consonance with the provisions of the Local Government Code:

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Malampaya Gas Project

Estimated Reserves

World Market Price 1998 US $ 0.072/cu.ft Percentage Sharing 100.0% 70.0%

Based on R.A. 7160 US $ 18 Billion Amount US $ 18.00 B 4.50 B

DOE Computatio n as per A.O. 381 US$

Under the proposed Federal State US $

Natural Gas Sharing Scheme per A.O. 381 Gross Proceeds Less: Cost Recovery (70% of Gross Proceeds or actual expenses whichever is lower) NET PROCEEDS Less: SPEXs Share (40%) Government Share (60%) Less: Income Tax Government Share after Taxes Net Natl Govt Share Palawan Share (40%) Annual Share from 2001 2006 (SPEX to Recover Investment) Annual Share from 2007 2021 Natl Govt Share US$ 600 Annual 40% Share of Palawan from 2007 2021 in Peso

2.5 TCF

30.0% 12.0% 18.0% 2.5 % 15.5% 9.3% 6.2 %

13.50 B 5.40 B 8.10 B 8.10 B 4.86 B $3.24 B* 8.10 B 1.11B 6.96 B 4.89 B $ 2.07 B* $ 162.0 M*

$ 240.0 M

P 13.4 B

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The issuance of Administrative Order No. 381 by former President Ramos was in consonance with Section 289 and 290 of R.A 7160. These provisions provide 40% share for LGU including all taxes being paid by contractor or company. However, the computation of DOE, does not actually confirmed with the Local Govt Code provisions. Palawan should be entitled to a total share of US$ 3.24 Billion inclusive of the income tax. The annual share should be US$162 Million or PhP 9.07 Billion a year. From the operation of 2002 to 2005, the National Govt had so far released only P600 M in 2004 to Palawan. This is far beyond what shall be taken from 2002 to 2004 operation of a total share of P27 Billion but the national government contends that Malampaya Gas Project is not part of the province of Palawan. In a recent issue of The Manila Times (October 8, 2005). Mr. Facundo Roco, the external affairs manager of SPEX, had released a statement that by 2006, 80% of the entire US$ 2 Billion investment may be recovered, so the 70% Cost recovery will be completed on its fifth year. Mr. Roco explained that the government can earn as much as 60% of the projects revenues which will go to the government while the remaining 40% will be divided among consortium members. The Malampayas revenue is seen to hit at least $1 Billion a year. Again, Palawan is entitled to its 40% share from the $600 Million which is $240 million a year. By 2007, the 40% share will be PhP 13.4 billion that is supposed to be due to Palawan annually to start in 2007. There is no way that Palawan can claim its rightful share under the present dispensation. The solution will be for Palawan to become a Federal State and the delineation of the state territory shall include the off shore area surrounding Palawan seas. EXISTING OIL OPERATION: In the oil sector, Palawan had produced 54 Million barrels of oil from the five (5) oil fields since 1979. Presently, three (3) oil fields still producing oil and these are the Cadlao Oil Field, Matinloc Oil Field and Nido Oil Field, all are in the northeast coast offshore Palawan. Based on the DOE data, the combined in placed reserve (can be extracted in the future by new technology) is 1,029 MMB and the recoverable reserve (can be extracted by current technology) is 224 MMB from the results of the oil fields already explored. Galoc Oil Field: The Galoc Oil Field with a recoverable reserve of 35 MMB is to be re opened. Vitol Company joined the consortium lead by the joint venture firm Galoc Productin company and has earmarket US$ 45 Million for the development program and expected to start its production in 2006. Palawan is expected to gain another P 1 Billion based on the provision of the Local Government Code. Oil from Malampaya Rim While the oil from the Malampaya Oil Rim is now being offered by DOE and PNOC for other contractor to extract its oil, Malampaya oil has a recoverable reserve of 27 MMB. Under the current technology, the cost of production is about US$700 Million and at current prices of $60 to $70 a barrel, the oil reserve is worth around $1.5 billion to $1.9 billion and Palawan can at least have a share of US$ 192 Million or P10.7 Billion. Octon Oil Field:

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Under the Service Contract 6A, Octon Oil Field has estimated to contain up to 12 MMB of oil and 23 billion cubic feet of natural gas. The Geneva based Vitol Company is opting to invest US$40 Million under a consortium with Philodrill Corp., the operator of SC ^A.

Philippine Contracting Round II (PCR II) Philippine Contracting Round II (PCR II) the Department of Energy had offered to Oil Investor to participate in bidding out about 30 Blocks of prospective oil and gas deposits surrounding the province of Palawan with potential deposits of 5 Billion barrels of oil and 15 TCF of natural gas. This potential can be commercially produced in about 20 years to 50 years from now. Kalayaan Islands Group Oil Prospect: Kalayaan Island Group (KIG) the Philippine government entered into a tripartite agreement with China and Vietnam for the exploratory and seismic survey of the KIG believed to have big deposits of oil and gas. ISSUES: There are two bones of contention in the adoption of a provision on how to treat off shore national wealth particularly oil and gas; a) If the Federal Constitution of America will be adopted for the offshore provision, Oil and Gas located offshore are owned by the Federal Republic and not by the State. This will deny us our sovereignty and at worst, not get any share. The minimum the state can get is a proportionate sharing among all the states and the best share is a proportion of share between the Federal Republic and the State, similar to the Local Govt Code of 40%-60% sharing. b) If the constitution of Borneo is to be adopted, the state owns all offshore national wealth and the state remitting the share of the Federal Republic. The worst scenario is a proportion of 40%-60% in favor of the Federal Republic and the best scenario is a proportion of 60%-40% in favor of the State. CONCLUSION: Palawan is expected to depend mostly on oil and gas revenue to finance the operation of the Federal State of Palawan. From its current production from Malampaya Gas Project, the three (3) existing oil field and the scheduled reopening of Galoc Oil Field and Octon Oil Fields, Palawan may realize a total of P20 Billion Pesos annually for the next 15 years. Beyond 15 years PCR II and the potential oil and gas deposits in Kalayaan Island Group will start its productions that will sustain the operation of Palawan in another 50 years. We can conclude that Palawan is economically viable to stand itself as a Federal State from oil and gas resources alone. MINERAL RESOURCES: After oil and gas resources, the next biggest taxes that Palawan has a 40% share is in mineral resources. There is neither debate nor issue in regard to the

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legitimate claims by the Palawan of its ownership. It is within the territory of the province of Palawan and municipality and its barangay. Therefore wherever the location of this mineral resources, the law is very explicit, sharing the same with the inhabitants by way of direct benefits. But again, similar to oil and gas share, National government denied Palawan, its municipalities and barangay their respective rightful shares. The Philippine Mining Act of 1995 and its Revised Implementing Rules and Regulations (RIRR) is considered in the industry today as one of the most socially and environmentally sensitive legislations in its class. It has specific provisions that take into consideration; Local government empowerment; Respect and concern for the indigenous cultural communities; Equitable sharing of benefits of natural wealth; Economic demands of present generation while providing the necessary foundation for future generations;

The IRR highlights the role of local government units (LGUs) in mining projects, both as beneficiaries and as active participants in mineral resources management, in consonance with the Constitution and government policies on local autonomy and empowerment. As such, the Mining Act provides the following: In consonance with the Local Government Code of 1992 (LGC), LGUs have a share of forty percent (40%) of the gross collection derived by the National Government from mining taxes, royalties and other such taxes, fees or charges from mining operations in addition to the occupational fees (30% to the Province and 70% to the Municipalities concerned.)

KNOWN RESERVES AND DEPOSITS OF MINERAL ORE: 1) NICKEL ORE: LOCATION Brgy. Buenavista, Pto. Princesa Lont Pt. & Iborsom Pt. Beron, Quezon Rio Tuba, Bataraza Pulot, Narra Bato-Bato, Narra Calategas, Narra Ipilan, Brookes Point Quezon and Aborlan Ipilan, Brookes Point TOTAL POSITIVE DEPOSITS CHROMITE ORE: TONS 10,794,650 204,100,000 9,607,200 2,631,168 3,670,712 1,752,457 6,149,457 172,982,380 2,513,000 414,201,024 GRADE 1.60% 1.35% 2.30% 2.04% 2.03% 2.03% 1.75% 1.33% 2.20%

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LOCATION Brgy. Bacungan, PPC Brgy. Irawan, PPC Brgy. Irawan, PPC Aborlan Bgry. Teresa, Narra TOTAL RESERVES IRON ORE: LOCATION Brookes Pt Brookes Pt Bataraza Bataraza Bataraza Bataraza Bataraza Aborlan Aborlan Pto. Princesa Contractor

TONS 1,741,290 1,397,000 24,000 8,000 2,615,860 6,086,150

GRADE 14.0% 41.0% 38.0% 46.14% 44.29%

Hectares 256 has 640 has 342 has 1,086 has 108 has 648 has 108 has 6,006 has 810 has 2,126 has 12,180 hectares

Mondo Exploration Company Atlantic City Mining RTN Corp Rodolfo Jamir Lourdes Balage Iluminada Martinez Melencio Villanueva Atlas Consolidated Atlas Consolidated Benguet Corporation TOTAL

Case study: PALAWAN HPP PROJECT, Rio Tuba, Bataraza The Palawan HPP Project at Rio Tuba, Bataraza, is included in the Ten-Point Legacy of President Gloria Macapagal Arroyo (2004-2010). Based on data from the Department of Environment and Natural Resources (DENR), the investment profile presented by the Mines and Geosciences Bureau Medium to Large Scale Mineral Resources Devt, Palawan HPP Projects investment portfolio is US$180,000,000.00 and expected income is US$318,000,000.00 and the Annual Excise Tax to the National Govt is US$6,360,000.00 or Php 356,000,000.00 (Exchange rate of US$ 1.00 Php 56.00)

By extrapolating the share of the Local Govt Unit in accordance with the provisions of the Local Government Code and Mining Act, the distribution of annual share to the LGUs follows; Annual Excise Tax Section 290, R.A. 7160 Share to LGUs Distribution of Share Provl Govt of Palawan (20%) Mun. of Bataraza (45%) Brgy. Rio Tuba (35%) Php 356,000,000.00 40% 142,400,000.00 28,480,000.00 64,080,000.00 49,840,000.00

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The above computation covers only the Excise Tax. Under the Mining Act 1995, the following taxes are due to the mining companies: Corporate Income Tax Excise Tax on Minerals Customs Duties Value Added Tax Royalties on Minerals Extracted from Mineral Reservation Documentary Stamp Tax Capital Gains Tax

For the computation of the Corporate Income Tax based on the DENR projection, the expected income tax is US$318,000,000 for the whole life operation of Palawan HPP Project. The expected life of the project is 20 years. The 40% share for Palawan is $127.2 million and the annual projected share from Corporate Income Tax is $6.36 million or PhP 356 million a year. The next highest tax that Palawan is entitled to is from the Value Added Tax computed based on the gross sales. While we do not have an ideal data to serve as basis of the Gross Sales that is subject to VAT, we ca make an extrapolation by assuming that the income tax represent 30% of the gross sales. If the 100% gross sales is $1.06 billion then we san safely assumed as 4% the average VAT charges that would mean the annual VAT is $42.4 million and the share of Palawan (40%) is $16.46 million a year or PhP 921.7 million a year. The undetermined taxes that can not be computed are the Custom Duties, Documentary Stamp Tax, Capital Gains Tax and Royalties. And there are payments to Local government such as follows: Business Tax Real Property Tax Registration Fees Occupation Fees (30% Province; 70% Municipalities) Community Tax Other Local Taxes

The local of transparency from the national government to provide necessary input to determine the ideal projection on revenues that can be derived from Palawan HPP Project had keep the province in the dark and denied whatever share supposed to be due to the Provincial government of Palawan, the municipality of Bataraza and as well as Barangay Rio Tuba where the mining site is located. While this presentation may be disputed by DENR and other National agencies, the summary of taxes projected for the three (3) taxes with projected computation, the total revenues is PhP 1.420 billion a year excluding taxes that computation where not made for lack of basis. An example is that there is no available data that we could obtain from Rio Tuba Nickel Mining Corporation and the Coral Bay Mining Corporation who had operating quite a long period of time. If Palawan HPP Project will provide an annual revenue of PhP .4 Billion to Palawan from the semi processing of secondary grade Nickel Ore from the stock file which was mined from the .6 million tons deposit in Barangay Rio Tuba, imagine the

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204 million tons deposit in Berong, Quezon, if this will be operated in the future, how much revenues Palawan will earn? The total nickel ore deposit in Palawan is 44 million tons. What about the Chromite Ore and the Iron Ore deposits awaiting also to be mined? Economic potential on mineral resources: Under a federal state, the discretion to adopt law-governing taxation shall be now the prerogative of the state. All taxes being imposed by the national government will now be defined and regulated by the state and considered another biggest potential revenue source of the state. Palawan will get a minimum of PhP .5 billion a year from mining taxes.

MARINE RESOURCES The area of Palawan waters is 397,000 sq. kilometers, the biggest in the Philippines that is why 60% of the total marine products requirements of Metro Manila came from Palawan water. However, since the implementation of the Local Government Code of 2, no clear cut guideline on the Fishery Code on how the local government unit cal also avail of its share from taxes derived from marine resources. This has to be studied well in the proposed Federal State Constitution and adoption of law that pertain to Fishery Code. Potential Marine Resources: a) Deep Sea Fishing Industry this is beyond the 7 seven kilometers from the shoreline of any 1,700 islands or islets of the province of Palawan. Fishing operators are using big fleets of fishing boats composed of Fish Finder, Trawler, Fish carrier, Processing Vessel and other supporting boats. Most of their catch are transported to Manila, etc. Annual fish cash is placed at tons of different type of fish. Tuna and mackerel are one big source of the Sardines Industry

Figure 11. Fish Production (In Metric Tons)

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Palaw an Zamboanga del Sur Sulu Top 10 Provinces Taw i - Taw i South Cotabato Quezon Iloilo

Zamboanga del Norte Bohol Negros Occidental 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Fish Production (in m etric tons)

Palawan has the largest fish production among all provinces in the country with 432,088 metric tons in 2003. Moreover, there has been a 33% increase in the fish production from 2002 to 2003. b) Aqua Culturing consist of shrimps, milk fish, fattening of crabs, and other similar culturing through the use of fishpond or inland water catch basin. Total hectares is ____ and an annual production of ________. Figure 12. Aquaculture Fish Production

Palaw an Taw i - Taw i Sulu Top 10 Provinces Bohol Pampanga Zamboanga del Sur Bulacan Antique Quezon Panagasinan 0 50,000 100,000 150,000 200,000 250,000 300,000

Aquaculture Fish Production (in m etric tons)

Palawan is even the topmost aquaculture fish producing province in the country with 260,684 metric tons in 2003. There has been a 38% increase in the production from 2002 to 2003.

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c) Sea farming another method of growing and fattening of marine resources such as the green grouper, carageena, and other marine life. Green Grouper grower are mostly located in the Northern Palawan areas of Malampaya Sound, San Vicente, east coast of Taytay, and the Calamianes Island. Agutaya has a 1,500 hectares of Seaweed Plantation with an annual production of 2,400 tons (underestimated). Dumaran has 110 hectartes planted of seaweeds. d) Pearl Farming- The uniqueness of the Palawan sea water with the quality of its salinity, clean and protected from weather is best suited for pearl farming. Pearl culturing is a 5 years period harvesting. One hectare will produce ___ pcs of pearl of a high grade class. This is a big commercial business and believed profitable because of high yield return due to its classification as a precious commodities. A 1,000 hectares of pearl farming in a 5 years cycle means harvesting of pearl is done from about 200 hectares annually. The municipality of San Vicente earned revenue from Port Barton Development Corporation which for 2005 paid an amount of P117,213.62 for licenses, P19,719.00 for Mayors Permit. The reported gross sales production is P21,311,562.45 from the 50,000 hectares at Queens Bay, Bgy. Port Barton, San Vicente, Palawan. A total of 75,000 hectares had been granted permit by municipalities for Pearl Farm operator as areas for Pearl culturing. A benefit for operators in Pearl industry but detrimental to the livelihood of small marginal fishermen denying them to catch fish in this area. This is a sample of the rich becoming richer while the poor becoming poorer. The worst is that taxes derived from Pearl Farm industry is so small not commensurate to offset the lost of livelihood of the affected small marginal fishermen. Pearl culturing can be considered as a Fishery Product and taxes to be derived shall also be subject to the 40% share under the National Wealth Sharing. The operator of Pearl Farm choose Palawan water as suitable for Pearl Culturing. Pearl Farming cannot be viable in all parts of the Philippine water, it must be cleaned, lower salinity, and protected from strong current, this is the true nature of Palawan water, and therefore, it is a natural resources of Palawan. Reviewing the taxes that can be imposed on Pearl farming, similar to excise tax can be imposed, income taxes, royalties and value added tax which may give Palawan hundreds of million a year. Data below show where the Pearl Farm operators applied permit: Municipality of Busuanga Sumapi Ecofarm Marily Municipality of Linapacan Hikari Municipality of Coron Ecofarm System and Resources 3,789 has 2,164 has 1,408 has 3,224 has 1,219 has

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Hikari SSP Corp. Bintuan Bulalacao La Reine de Mer Inc. Borac/Marcilla Bulalacao Municipality of Culion Hikari SSP Corp Sommaco Municipality of Taytay Salvamar Corp Teramar Bay Farm Municipality of San Vicente Port Barton Devt Corp Municipality of Dumaran Chindonan Pearl Farm Naglayan Pearl Farm Municipality of Balabac Total area

134 has 475 has 414 has 500 has 2,257 has 931 has 3,676 has 5,450 has 50,000 has 4,951 has 5,000 has 85,592 has

e) Municipal Waters Fishing industry under this category are mostly small marginal fisherman using the hook and line method and their catch is supplied to local markets but almost first to third class are sold to buyers (both local and foreign companies) that exports this to Manila and outside of the Philippines. One controversial issue is the method of catching live fish which is the most lucrative business that commands high prices in the world market. BFAR had a revenue of P1,330,881 for 2004. There are about more than 10 live fish buyers in Palawan using chartered plane and commercial passenger plane with a daily shipment of 5 to 10 tons. AGRICULTURE Figure 1. Palay Production of Palawan

Palay Production (in metric tons)

250,000 200,000 150,000 100,000 50,000 0 1997 1998 1999 2000 Year 2001 2002 2003

Palawan has produced 216, 214 metric tons of Palay last 2003. There was an average increase of 19% in Palay production from 1999 to 2003.

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Figure 2. Corn Production of Palawan

Corn Production (in metric tons)

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 Year 2001 2002 2003

Corn production in Palawan is increasing yearly. The latest figure was in 2003 with 27, 998 metric tons. There was an average increase of 13% in the corn production from 2000. Figure 3. Mango production in Palawan
Mango Production (in metric tons)

6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 5,000 4,800 1999 2000 2001 Year 2002 2003

There has been a sudden decrease of 9% in the production of mangoes in the province from 2001 to 2002. Almost 6,000 metric tons of mangoes were produced in 2002 and was just maintained in 2003. Figure 4. Banana Production

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Coconut Production (in metric tons)

140,000,000 139,000,000 138,000,000 137,000,000 136,000,000 135,000,000 134,000,000 1999 2000 2001 Year 2002 2003

needs to be checked Figure 5. Hog inventory

125,000 120,000 Hog Inventory 115,000 110,000 105,000 100,000 1997 1998 1999 2000 Year 2001 2002 2003

Starting year 2000, there has been an increasing hog inventory in the province. There has been a 5% increase in the year 2003. Hog inventory in 2003 was about 120,000.

Figure 6. Goat Inventory

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45,000 40,000 35,000 Goat inventory 30,000 25,000 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 Year 2001 2002 2003

There has been a considerable decrease in the production of goat from 1997 to 2003 for about 50%. The province has been producing about 20,000 goats in 2002 and maintained production in 2003. Figure 7. Cattle Inventory

30,000 25,000 Cattle Inventory 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 Year 2001 2002 2003

There has been a decrease in the cattle inventory from 1997 to year 2000. From 2000, the province has started to increase its production with an annual increase of 3%.

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Figure 8. Carabao Inventory

40,000 35,000 Carabao Inventory 30,000 25,000 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 Year 2001 2002 2003

Palawan has an increasing carabao inventory for the previous years, though there has been a .1% decrease from 2002 to 2003. Figure 9. Duck Inventory

35,000 30,000 Duck Production 25,000 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 Year 2001 2002 2003

There had been fluctuations in the duck inventory in the province. The latest inventory was in year 2003 with 14, 306 ducks. This was 44% lower than in year 2002.

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Figure 10. Chicken inventory

900,000 800,000 Chicken Production 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1997 1998 1999 2000 Year 2001 2002 2003

There has been an increasing chicken production in the province. There has been a 44% increase from 1997 to 2003. TOURISM INDUSTRY: In the Human Resource Development Plan of Oliver Hillel, it was stated that the Special Assistance for Project Formation (SAPROF) reported that the total international arrival growth for the province of Palawan is 25% for the years 1994 to 1998 from 34,000 in 1994 to 98,000 in 1997 and 83,000 in 1998. It was noted that among the places frequented by tourist in the Philippines, Palawan is still a relatively limited destination. Data from the Provincial Tourism Office showed that in 2003 and 2004, it had significantly less than 5% of total international arrivals in the country. Although the reach of current tourism statistics is still limited, some trends can be discerned. Tourism began picking up in the province in 1992 when over 42,000 visitors came. It grew steep rates of close to 50% between 1993 and 2000 when it peaked at 128,000. it however began to decrease in May 2000, notably with the kidnapping even at Dos Palmas and the terrorist attacks in the US in 2001. in 2002, arrivals still fell to 113,000, about 5% down from 117,000 in 2001, which was already down by 9% in relation to 2000. Arrivals in November to December 2001 were even worse. It fell by no less than 46% (11,378) as compared to the same period in 2000 (21,029). In 2003, recovery was steep with 142,238 arrivals, an increase of 26%. Major international markets in 2003 and 2004 were Koreans (22% on international arrivals in 2002 and 30% in 2004); Japanese (7% in 2002, 11% in 2004) and Americans (7% in 2002 and 4.5% in 2004). Other significant markets were Germans (3% in 2003 and 2.6% in 2004), French, UK citizens and Australians (2% each in 2003, UK and Australia down to 1.6% in 2004). See Figure below.

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Foreign Tourist Arrivals

35% 30% 25% 20% 15% 10% 5% 0% Koreans Japanese Americans 2002 2004

MEDICAL SPA PROJECT: The Department of Energy is financing the establishment of a medical spa project in the hot spring area of Puerto Princesa to cater to foreign clients KALAYAAN ISLAND GROUP Another economic potential for Palawan is the Kalayaan Island Group (KIG), within the Spratlys and the 23rd municipality of Palawan. Kalayaan, with its vast marine territory, has one of the richest fishing grounds in the province, and a potential of becoming the countrys leading supplier of fish and other marine resources. Dr. John McManus of the International Center for Living Aquatic Resources Management calls KIG a savings bank that provides the constant flow of fish larvae to more depleted areas of the sea. This testifies to the abundance of fish in the area. Its many coral reefs inhabited by various species of fish have been frequented by foreign fishermen from Hainan, China, and local fishermen from as far as Batangas. Giant sea cucumber and giant clams also abound within the territory. The South China Sea is one of the most productive commercial fishing areas in the world. A survey done in 1984 has reported the following data: (1) there are 314 species in the South China Sea, 66 of which are commercially important, (2) around 5 million or 8% of the worlds annual catch of 70 million tons, come from this territory. In 1996, the University of the Philippines Marine Science Institute claimed that the reefs at KIG had an annual fishery yield of 78 105 metric tons per square kilometers. Computed at one dollar per kilogram, the estimated annual yield of the KIG amounts to US $78,000 - $105,000 per square kilometer. Pelagic fishing (Tuna and Mackerel) will add to this another 47 - 105 M US dollars of estimated income. The Spratlys straddle the migration path of Yellow Fin Tuna, and with more than 600 coral reefs and associated structures. The figures presented may be far more conservative than the actual. From 1992 1995, the Bureau of Agricultural Statistics reported a 20% contribution of Kalayaans Fishing ground to the annual commercial yield, which was the highest from a single statistical fishing ground. The catch taken from the area reached p to 180,000 metric tons. This attests to the richness of Kalayaans fishery resources (Kalayaan Frontier, pp34 36).

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Kalayaans economic potential is not limited to its marine resources. It is believed to be sitting on top of what could be the largest oil and natural gas deposits ever explored, being located between the oilfields of Brunei and Borneo in the South and Linapacan and Malampaya oilfields in the North China, which leads all claimant countries in terms of exploratory efforts in the South China Sea, reported the following: (1) the continental shelf of the South China Sea has geological structures that could trap oil in large quantities; (2) the South China Sea holds one of the worlds four largest hydrocarbon concentrations; and (3) the Spratlys could generate 17.1 billion of oil (Kuwait has 13 billion) according to Chinas Ministry of Geology and Mineral Resources (Kalayaan Frontier, p.36) The richness of marine life in the province is vouched for by the record from the Bureau of Agricultural Statistics. The Palawan Operation Center of fishery production recorded a total of 20, 807 metric tons in 2003 and a total of 140, 216 metric tons of marine municipal production in the same year. A record from the Bureau of Fisheries and Aquatic Resources Provincial Fisheries Office also show the revenues generated from the fishery industry in Palawan, which includes fishpond rentals, commercial fishing boat licenses, and other fees, amounted to 304,646.20 pesos in 2003 and 743, 231.00 pesos from January to June 2004. Chinese and Vietnamese poachers were even caught and jailed for the intrusion into Philippine territory by fishing within the jurisdiction of Palawan. REFERENCES Blair and Robertson, The Philippine Islands. Fernandez and Fernandez, Chronology of Events in Palawan History. __________________________, Local Heroes of Cuyo Islands. __________________________, Some Palaweno Personalities,vol.1. __________________________, The History and Culture of Cuyo. 100 Years of Puerto Princesa. A Special Centennial Anniversary Issue, 1872-1972. Loviny, Christopher, The Pearl Road. Manlavi, Diokno, History of Palawan,Part I. ________________, Palawans Fighting One Thousand. ________________, Palawans Politics. Ocampo, Nilo, Katutubo, Muslim at Kristiyano, 1621-1901. _____________,History of Palawan, jn Eder and Fernandez, Palawan at the Crossroads. Rodriguez, Eulogio, Early Names of the Archipelago. Rosa, dela, Fr. Federico, Palawan: A Historical Sketch.

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