Good Governance is Good Economics 2013 Feb

7/28/2019 Good Governance is Good Economics 2013 Feb

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The Republic of the Philippines

Good Governance is Good Economics:

Achieving Investment Grade

February 2013



Contents

I. Macroeconomic Performance and Outlook Real Sector ......................................…………………………………. . Monetary, External and Financial ………………………………………. Fiscal

• Revenue Collection and Debt Management …………………….

• Expenditure Management and Procurement Reforms …………II. Sectoral Performance and Outlook

Trade, Industry and Investments .................................. …………….. Agriculture ……...…………………………………………………………

Tourism …………………………………………………………………… Infrastructure

• Energy ………………………………………………………………• Transport and Flood Management ……………...........................• Airports, Seaports, and Mass Transport Systems ......................• Public-Private Partnership ….…………...………………………..

III. Profiles of Speakers and Panel Discussants ..……………………………...IV. Directory of Economic Agencies ……………………………………………..V. Investor Relations Office Brochure …………………………………………..

2

319

3246

6279

96

107119138147

157175177



Secretary Arsenio M. Balisacan

National Economic and Development Authority

Real Sector

3



Comparative GDP growth shows Philippines performingbetter in recent years...

Sources: ADB ARIC; official country websites

*Indonesia: Reuters

2012 FY data for Thailand and Malaysia are not yet available

GDP Growth: Philippines vs. Other Asian Countries

%

7.8

6.2

5.0

6.6

1.2

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2005 2006 2007 2008 2009 2010 2011 2012

China Indonesia* Viet Nam Malaysia

Philippines Thailand Singapore

4



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

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GDP growth rate Low-end target High-end target

*Phi l ippine Development Plan: 2011 – 2016 ta rgets

GDP Growth Rate vs. Official Target

%

5



Philippines is commended for sound macroeconomic

fundamentals

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009 2010 2011 2012

Headline Inflation Low Target High Target

Low and stable inflation Favorable interest rates andsound banking system

Sustainable fiscal position Strong external position

% %%

%

-5.00-4.50-4.00-3.50-3.00-2.50-2.00-1.50-1.00-0.500.00

40.00

45.00

50.00

55.00

60.00

65.00

70.00

2005 2006 2007 2008 2009 2010 2011 2012

NG Debt/GDP (LHS) Fiscal Balance/GDP (RHS)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2005 2006 2007 2008 2009 2010 2011 2012*External Debt/GDP ratio, LHS Current Account/GDP ratio, RHS

% %

%

* CA: Jan - Sept 2012;

External Debt: as of Sept 2012

0.0

5.0

10.0

15.0

20.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2005 2006 2007 2008 2009 2010 2011 2012

NPL Ratio, LHS

Real interest rates, LHS

CAR, RHS

6

Q1-Q3



Improvement in governance and competitive indicators...

...with ratings moving in the right direction

WEF Competitiveness Rankings Philippines Credit Ratings

Source: Moody’s, S&P and Fitch

7



-20

-10

0

10

20

40

50

60

70

80

10 20 30 40 50 60 70 80 90

POV Trend Cycle

Hodrick-Prescott Filter (lambda=1600)

Self-rated poverty

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

-3

-2

-1

0

1

2

3

0

2

4

6

8

5 10 15 20 25 30 35 40 45 50 55

S_HUNGER Trend Cycle

Hodrick-Prescott Filter (lambda=1600)

Has growth been inclusive?

Self-rated poverty and severe hunger exhibit declining trend

Severe hunger

8



61.7%

11.2%

12.6%

14.5%

2009

62.5%

10.9%

12.5%

14.1%

2010

62.4%

10.8%

12.8%

14.1%

2011

Regional GDP, in % share to Philippine GDP (2009 – 2011)But distribution of economic activity remains unequal

9



Addressing constraints to growth

Accelerate infrastructure development

Provide adequate and efficient power supply

Enhance administrative efficiencies

10



Improve revenue and tax efforts to increase resources for

infrastructure and social spending

Revenue and Tax Efforts (%of GDP)

*Q1 – Q3 only

14.37

15.62

16.49

15.58

13.99

13.42

13.97

14.72

12.43

13.71 13.5413.59

12.2312.15

12.35

13.11

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

2005 2006 2007 2008 2009 2010 2011 2012

Revenue Effort* Tax Effort*

11



Ensure that no region is left behind…

I S A B E L A

PA L A W A N

L EYT E

QUEZ ON

B U K I D N O N

C A G A Y A N

C E B U

S A M A R

A B RA

IL O I L O

C O T A B A T O

B O H OL

A P A Y A O

AG U S A N DE L S UR

C A P I Z

N U E V A E C I JA

PA N G A S INA N

T A R L A C

Q U I R I N O

I F U G A O

NE G RO S O C C I D E N T A L

D A V A OD E L S U R

A U R O R A

K A L I N G A

Z A M B A L E S

AL BAY

M A S B A T E

M A G U IN D A N A O

C A MA R I N E S S U R

B A T A N G A S

B U L A C A N

A N T I Q U E

D A V A O O R I E N T A L

A K L A N

N E G R O S O R I E N T A L

B E N G U E T

N U E V A V I Z C A Y A

S U L T AN K U D A R A T

Z A M B O A NG A D E L N O R TE

S U R IG A O D E L S UR

L A N AO D E L S U R

MIN D O R O O C C I DE N T A L

E A S T E RN S A M A R

S O U T H C O TA B A T O

I L O C O S N O R T E

S A R A N G A N I

RIZAL

M IN D O R OO R I E N T A L

C O M P OS T E L A V A L L EY

L AGUNA

IL O C O S S U R

C A V IT E

S O R S O G O N

M I S A M I S O R I EN T A L

Z A M B O A NG A D E L S UR

NO R T H E R N S A M A R

P A M P A N G A

B A T A A N

S U L U

L A N A O D E L N O R T E

L A UN I O N

A G U S A N D E L N O R T E

D A V A ODE L N O R T E

B A S IL AN

M T P R O V I N CE

ZA M B O A N G A S IB U G A Y

C A M A R IN E S N O R T E

C A T A N D U A N E S

M IS A M I S O C C ID E N T A L

S O U T H E R N L E Y T E

R O M B L O N

M A R I N D U Q UE

B I L I RA N

S U R I G AO D E L N O R T E

T AWI - T AWI

G U I M A R A S

M E T R O M A N IL A

S I Q UI JO R CA M I G U IN

B A T A N E S

National Road Classification

North-South Backbone

East-West Lateral

Other Road of Strategic Importance

Secondary National Road

Source: DPWH12



High priority given to health and education

Conditional Cash Transfer Program

K+12 program Competence in Math, Science and English

Firm commitment to meet the Millennium DevelopmentGoals

13



0.0

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

1 9 8 0

1 9 8 2

1 9 8 4

1 9 8 6

1 9 8 8

1 9 9 0

1 9 9 2

1 9 9 4

1 9 9 6

1 9 9 8

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6

2 0 0 8

2 0 1 0

Indonesia

Malaysia

Philippines

Thailand

Vietnam

32.2

11.1

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

30.0

31.0

32.0

33.0

34.0

35.0

36.0

37.0

2005 2006 2007 2008 2009 2010 2011 2012

Employment by Sector, LHS Share to GDP, RHSAgri share in

employment, LHS

Agri share in GDP, RHS

Source: FAOSTAT

Labour Productivity in Agriculture,

Selected ASEAN Countries (1980-2011)

Importance of Agriculture in GDP

and employment (%)

Agriculture will remain a priority sector

14



Simplifying labor regulation and address skills mismatch

15



Climate Change Adaptation &Disaster Risk Reduction Management

CCA & DRRM

• Climate change-resilient infrastructure• Disaster preparedness

• Use of technology

16



Transparency

Accountability

Addressinefficiency Minimize

corruption

Good governance will continue to be the platform of publicadministration

17



Consistencyof Policies

Alignment ofplans andpolicies

Efficiency ofregulation

Institutional ReformsWith focus on enhancing responsiveness and reducing inefficiencies

18



Monetary, External and Financial Sectors

Governor Amando M. Tetangco, Jr.

Bangko Sentral ng Pilipinas

1919



Outline

I. 2012 Performance/Achievements

II. 2013 Economic Outlook

III. BSP’s Policy Directions

20



Policy/reform milestone and their impact

Policy Impact

MonetarySector

Reduced policy interest rates by a cumulative of 100 bas is pointsto 3.5 percent from 4.5 percent for the RRP (borrowing) rate andto 5.5 percent from 6.5 percent for the RP (lending) rate

Implemented operational adjustments in reserve requirements(RR) policy and the Special Depos it Account (SDA) facility

Price stabil ity and non-inflationary growth

ExternalSector

Maintained presence in foreign exchange market and built up GIR

Sustained improvement of external debt management

Adopted a number of macro prudential regulations, including the

increase in capital charge for non-deliverable forwards (NDF)

pos itions and prescribed a cap on NDF exposure of banks

Strong external position andstable exchange rate

FinancialSector

Further enhanced the governance standards of BSP-supervisedfinancial institutions (FIs) through crafting regulations that wouldstrengthen individual banking, as follows:

Emphas ized the need for FIs’ Boards of Directors to exerciseobjective judgments and ensure a stronger system of checks and

balances; Instituted revisions to compliance programs of banks to better

counter bank reputational risks that erode public’s trust of the

banks.

Announced the adoption of Basel III capital adequacy rules foruniversal and commercial banks by 2014

Efficient, sound, andcompetitive financial sector

21



Prudent monetary policy supported low inflation and

robust output growthHeadline Inflation vs. Target

Jan 2002 – Dec 20122006=100, in percent Inflation environment continues

to be favorable

Low lending rate encouragesinvestment and consumption

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Headline Lower Bound of Target Upper Bound of Target

Dec 2012 = 2.9%

2012 Ave = 3.2%

0

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010 2011 2012

RRP rate and Average lending rateJanuary 2005-Dec 2012, in percent

RRP Rate Average Bank lending Rate

RRP Rate and Average Lending Rate

Jan 2005 – Dec 2012in percent

Dec’12 = 5.7%

Dec’12 = 3.5%

22



Strong external position despite the challengingexternal environment

83.8bn

12.0

0

2

4

6

8

10

12

14

0

10

20

3040

50

60

70

80

90

2004 2005 2006 2007 2008 2009 2010 2011 2012

GIR (lhs) Import Cover (rhs)

Total External Debt2004 – Q3 2012

45.0

50.0

55.0

60.0

65.0

2004 2005 2006 2007 2008 2009 2010 2011 Q32012

0

20

40

60

80

External debt in US$ bill ion (lhs) External debt as % of GDP (rhs)

%US$ billion

BOP position remains in surplus

Foreign exchange reserves continue

to build-up

External debt/GDP declinessignificantly

US$ billion months

Balance of Payments2004 – Dec 2012; in million US$

7.1bn

5.8bn

-5000

0

500010000

15000

20000

0

2000

40006000

8000

10000

2004 2005 2006 2007 2008 2009 2010 2011 2012CA (lhs) BOP (rhs)

US$ million US$ million

Gross International Reserves2004 – Dec 2012; in billion US$

23

61.7bn

25.6%



14.6 15.2 13.4 10.8 7.8 5.0 4.1 3.7 3.6 2.8 2.6

50.2 52.258.0

71.9 74.4 81.687.1

93.4 97.8 104.0114.0

0

1500

3000

4500

0

30

60

90

120

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Oct'12

PHP bn

TLP, gross (RH S) NPL Ratio ( LHS) NPL Coverage Ratio (LHS)

Sound and stable banking system intermediated fundsto productive ends

Quality of loan portfolio

continues to improve

Total Loans, Non-Performing Loans Ratio andNon-Performing Loans Coverage Ratio, 2002-Oct 2012

Bank capitalization remainsabove regulatory standardsand international norms

8

10

12

14

16

18

20

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar'12

%

CAR, Solo CAR, Consolidated Tier 1

BSP Regulatory Requirement of 10%

International Standard of 8%

24

Capital Adequacy Ratio, Philippine Banking System,2002-2011



BSP’s performance

1. Prudent monetarypolicy

Inflation 3.2 percent 3.0-5.0 percent

2. Robust externalposition

Balance of Payments(BOP)

US$9.2 billion(Jan-Dec 2012) US$6.8 billion

Gross InternationalReserves (GIR)

US$83.8 billion(End-Dec 2012) US$ 83.0 billion

External Debt-to-GDP ratio 25.6 percent(Q3 2012)

(End 2011: 26.9 percent)Decreasing

3. Sound and stablefinancial system

Capital Adequacy Ratio(CAR), consolidated basis(UKBs)

18.0 percent(End-Mar 2012)

(End 2011: 17.7 percent)

Increasing

Non-Performing Loans(NPL) ratio (UKBs)

2.0 percent(End-Oct 2012)

(End 2011: 2.4 percent)Decreasing

2012 Actual 2012 Target/Forecast

25



BSP continues to enhancecorporate governance

Revised existing regulations on corporate governance in line with international best

practices such as the “Principles for Enhancing Corporate Governance” issued bythe Basel Committee on Banking Supervision

Approved the amendments to the guidelines strengthening BSP’s governancestandards to rationalize the definition/qualifications of an independent director andthe composition of the members of board-level committees

Approved the amendment to the regulations on the confirmation of theelection/appointment of directors/officers of banks with a rank of senior vicepresident (SVP) and above to simplify the confirmation procedures

26



BSP actively pursues policies for inclusive finance

Policy, Regulation andSupervision

No. 1 in the world in microfinance regulatory environment (2009-2012)

Implemented the enhanced rules on true and transparent lending

Updated Anti-Money Laundering Rules and Regulations, Outsourcing Rules

Widened range of products (i.e., microdepos its, microenterprise loan, housingmicrofinance, microinsurance, etc.)

Financial Education andConsumer Protection

Established Economic and Financial Learning Centers (EFLC) in 23 branches

Institutionalized the Financial Consumers Affairs Group (FCAG) to provide avenue forcomplaints resolution and redress.

Data and Measurement Worked toward a systematic collection of financial inclusion data for informed policy-making

Mapped out financial service access points:

o Banking offices went up by 19% to 9,015 in 2011 from 7,585 in 2011o ATM network accelerated by 175% to 10,658 in 2011 from 3,882 in 2001

o Alternative access points (i.e., money changers, remittances agents, etc) increased to

over 26,000

Financial InclusionAdvocacy

Sustained leadership in global financial inclusion initiatives

Continued work on sharing knowledge and experience in financial inclusion withinternational peers

Spearheaded the implementation of the Credit Surety Fund (CSF)

- As of 2012, 26 CSFs in various provinces have been organized

Ensured the smooth inflow of remittances through the use of PhilPass REMIT System

- As of 2012, the total number of transactions reached 380,150 with corresponding

value of US$373.6 mill ion since its implementation on 4 May 2010

27



State of financial inclusion in the Philippines

Philippine banking system’s overallphysical network improved

Regional Growth in the number ofBanking Offices and ATMs, 2009-2011

The growth rate in the number ofbranches and ATMs from 2009 to

2011 is noteworthy, especially insome regions in Mindanao.

Number of Banking Offices andATMs, 2001-2011

28



2013 Economic Outlook

ActualActual ProjectionsProjections

20112011 20122012 20132013

Headline Inflation (%, 2006=100) 4.6 3.2 3.0 – 5.0 a/

Exports Growth (%) 1/ -6.4 7.9 (Jan-Sep) 10.0 a/

Imports Growth (%) 1/ 2.1 2.2 (Jan-Sep) 12.0 a/

OF Remittances 2/ Amount (US$ Bn)

Growth Rate20.1

7.2

19.4 (Jan-Nov)

6.0

22.2 b/

5.0 b/

Current Account(US$ Bn) 7.0 7.2 (Jan-Sep) 4.9 b/

Balance of Payments(US$ Bn) 10.2 9.2 (Jan-Dec) 3.0 b/

GIR (US$ Bn) 75.3 83.8 r/ 86.0 b/ a/ Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 28 November 2012b/ Based on BSP projections as of 15 November 20121/ Based on Balance of Payments (BOP) concept.2/ Remittances coursed through banksr/revised

29



Key risks to inflation

Downside risk:

Weak global economic prospects

Sustained stability of the peso against the US dollar

Upside risks:

Pass-through of electricity rate hikes Higher international food prices due to adverse weather conditions in major

producing countries

30



BSP Policy Directions

Monetary sector Financial sector External sector

Explore further fine-tuning ofmonetary policy toolkit for the

achievement of the BSP’smandate of maintaining priceand financial stability

Sharpen economicsurveillance of shifts in the

domestic and global inflationdynamics, including anybrewing asset pricepressures.

Continue to align local bankingpractices to international

standards to make regulatorycapital framework more risk-sensitive

Strengthen further corporategovernance framework and

develop appropriate policies insupport of improving bankoperations and risk management

Sustain its advocacies onmicrofinance, financial inclusion,

consumer protection andfinancial education with greatervigor.

Maintain market-determinedexchange rate

Keep comfortable level ofreserves

Continue to promote externaldebt sustainability

31



Fiscal Sector :

Revenue Collection and Debt Management

Secretary Cesar V. Purisima

Department of Finance

32



Contents

I. National Government (NG) Fiscal Performance (January - November 2012)

II. Outlook for 2013

i. NG Fiscal Program

ii. NG Financing Program

iii. NG Debt

iv. General Government Debt

v. Consolidated Public Sector Financial Position

III. Policy Reforms and Plans/Projects for 2013

33



(in Billion Pesos)

Jan - Nov

FY 2012 2011 2012 %GrowthProgram Actual Actual Variance

Total Revenues 1,560.6 1,249.8 1,408.6 158.8 12.7%

Tax Revenues 1,427.4 1,105.0 1,247.0 142.0 12.9%

BIR 1,066.1 849.5 969.3 119.8 14.1%

BOC 347.1 243.0 264.3 21.4 8.8%

Other Offices 14.2 12.5 13.3 0.8 6.7%

Non-Tax Revenues 131.2 144.1 153.3 9.2 6.4%

o.w. BTr Income 61.8 72.2 80.0 7.7 10.7%

Fees & Charges 69.4 71.8 73.2 1.4 2.0%

Privatization 2.0 0.7 8.3 7.6 1034.5%

Expenditure 1,839.7 1,346.0 1,535.9 189.8 14.1%

Surplus/(Deficit) (279.1) (96.3) (127.3) (31.0) 32.3%

1st eleven months revenue collections at double digit growth

34



2011 2012 2013 Growth Rate

In Billion Pesos Actual Emerging BESF1 (2013/2012)

Total Revenues 1,359.9 1,518.4 1,780.1 15.0%

Tax Revenues 1,202.1 1,351.4 1,651.3 19.0%

BIR 924.1 1,046.0 1,238.6 19.9%

BOC 265.1 291.4 397.3 16.7%

Other Offices 12.8 14.0 15.4 1.5%

Non-Tax Revenues 156.9 158.7 126.9 -14.3%

o.w. BTr Income 75.2 82.8 53.2 -30.3%

Fees and Charges 81.5 75.9 73.6 3.1%

Privatization 0.9 8.3 2.0 -75.9%

Expenditure 1,557.7 1,753.7 2,021.1 13.9%

Surplus/(Deficit) (197.8) (235.3) (241.0) 6.6%

% of GDP -2.0% -2.2% -2.0%

2013 Fiscal Program in line with medium term fiscalobjectives

Source: Budget Expenditures and Sources of Financing (BESF) 2013, DBM1 Cash basis

35



20112011ActualActual

20122012ActualActual

20132013ProgramProgramBESFBESF

Nominal GDP Growth (%) 8.1 8.6 11.5

Real GDP Growth (%) 3.9 6.6 6.0

Inflation (%) 4.8 3.2 3.0 – 5.0

Interest Rate (%) 2.4 2.11 3.0

Exchange Rate (P/$) 43.30 42.23 42.00

Imports (% growth) 9.5 1.01 12.0

Exports (% growth) -6.9 7.01

10.0

Dubai Oil Price ($/barrel) 106.20 108.93 90.00

Assumptions for the 2013 Fiscal Program

Source: BESF 2013, DBM1 Data as of Nov 2012

36



56

66 65

8475

4434 35

1625

0

20

40

60

80

100

2009 2010 2011 Jan-Nov 2012 2013 Program

Domestic Foreign

NG Financing program will continue to focus onincreasing domestic source of funds

Source: 1 BESF 2013, DBM

1

National Government Financing Program

%

37



4,396.6

4,718.2

5,358.85,213.1

54.8

52.4

40.0

45.0

50.0

55.0

60.0

4,000.0

4,500.0

5,000.0

5,500.0

6,000.0

2009 2010 2011 2012 2012 2013

P Billion % of GDP

Program 1

4,951.2

50.9

48.0

Program

49.5

NG Debt to GDP ratio will continue to improve

50.5

ActualJan-Sep

5,779.0

Source: 1 BESF 2013, DBM

National Government Debt-to-GDP

38



68.5

61.4

53.9 54.7 54.852.4 50.9 50.559.2

51.6

44.2 44.2 44.3 43.5 41.9 40.9

0

20

40

60

80

2005 2006 2007 2008 2009 2010 2011 Q3 2012

% to GDP

NG Debt

GG Debt

GG Debt/GDP lower than NG Debt/GDP ratio

General Government Debt/GDP vs. National Government Debt/GDP

39



(241.4) (355.8) (178.7) (213.9)

-3.1

-4.0

-2.0

-1.3

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

-500.0

-400.0

-300.0

-200.0

-100.0

0.0

100.0

2009 2010 2011 2012 Prog 2013 Prog

% of GDP P Billion

-1.8

(158.3)

Consolidated Public Sector Financial Deficit tofurther decline

Consolidated Public Sector Deficit as of end Sep 2012 declined to 0.7% of GDPor P54.7 billion

Consolidated Public Sector Deficit

40



Status of RATE, RATS & RIPS (as of January 17, 2013)

Run After Tax Evaders (RATE)

140 Cases filed

Estimated tax liability of taxpayers : P44.27 BillionBIR BIR

Under the Aquino administration

Run After The Smugglers (RATS)

120 Cases filed

Estimated tax liability of taxpayers : P52.55 Billion

BOCBOC

Lifestyle check under the Revenue Integrity Protection Service

(RIPS)

55 Cases filed (59 respondents) under the new administration A total of 129 Cases (172 respondents) from 2003 to Dec. 31, 2012

62 personnel suspended from office; 21dismissed from service

DOFDOF

41



Fiscal Incentives Rationalization (FIR)

– Intended to remove redundant incentives to reduce the fiscalcosts and ensure that incentives will be given only to those who

need them.

– Status: Ongoing discussion (DOF, DTI, BOI) to come up with aconsensus bill.

Policy Reforms

Review of the fiscal regime of the mining sector

– As provided for under Section 4 of EO 79, new mineralagreements is suspended until a legislation rationalizing existingrevenue sharing schemes and mechanisms shall have taken

effect.

– Status: The Mining Industry Coordinating Council (MICC) isstudying options for mining fiscal regime and revenue sharing.

42



Invigorated Run After Tax Evaders (RATE)

Oplan Kandado Re-engineering of other Business Processes Electronic Official Registry Book (eORB) Implementation of Internal Revenue Stamps Integrated System (IRSIS)

on the use of Secured Stamps for Cigarettes

Electronic Letter of Authority Monitoring System (eLAMS) Electronic Certificate Authorizing Registration (eCAR) Accounts Receivable Management System (ARMS) Collection Reconciliation System On-line System for Transfer Tax Transactions (eOSSTTT)

Geographic Information System (Metro Manila Zonal Values and eSales) Electronic Tax Information Systems (eTIS) Project

Major Plans and Programs for 2013

Bureau of Internal Revenue

43



Enhancement of eAccReg and eSales

Expansion of ISO Certification to other districts Re-registration of Taxpayers thru Taxpayer Registration InformationUpdate (TRIU) Project

Asset Information Management (AIM-P) – TPI Matching of AmnestyReturns

Interactive Forms Centralization of Data Processing to the Regional Offices

Increase in Taxpayer Database Exchange of Information (EOI) Program Tax Ruling and Case Management System (TRCMS)

Mobile Revenue Collection Officers System (MRCOS) Organizational and Management DevelopmentProgram/Rationalization Plan (RATPLAN)

Procurement, Payment, Inventory and Distribution Monitoring System


Bureau of Internal Revenue

44



Integrate National Single Window (NSW) with Electronic to Mobile

System (E2M) and Other Government Agencies automatedpermit/licensing systems

Strengthen the selectivity system

Rationalize the assignment of discretionary functions and tightencorresponding accountabilities

Implement automated raw materials liquidation and bond management

Empower internal controls


Bureau of Customs

45



Fiscal Sector:Expenditure Management and Procurement Reforms

Secretary Florencio B. Abad

Department of Budget and Management

46

C t t



Contents

I. Fiscal and Disbursement Performance (January-November 2012)

II. Progress in the Pursuit of Budget Reforms

III. Progress in Reforms of Good Governance and Anti-Corruption

IV. Fiscal Outlook for 2013

V. Policy Thrusts and Other Plans/Projects for 2013

VI. 2013 Budget for Mindanao

47



Revenue and Disbursement Performance, Jan-Nov 2012

year-on-year % of full-year program

P1,408.6 Bn 12.7 %

14.1 %

90.3 %

83.5 %

P127.3 Bn 45.6 %32.3 %Deficit

Revenues

Disbursements P1,535.9 Bn

48



Amount

(Php bn)%

REVENUES 1,249.8 1,408.6 158.8 12.7 90.3 DISBURSEMENTS 1,346.0 1,535.9 189.8 14.1 83.5

Current Operating Exp. 1,127.1 1,258.2 131.1 11.6 87.2

PS 449.2 496.1 46.9 10.4 84.7

MOOE 151.3 226.5 75.2 49.7 89.0

Subsidy 37.3 25.6 (11.7) (31.3) 80.7

Allotment to LGUs 210.4 200.4 (10.0) (4.8) 91.7 Interest Payments 251.5 282.3 30.8 12.3 88.9

Tax Expenditures 27.4 27.1 (0.3) (0.9) 79.3

Capital Outlays 201.9 248.7 46.8 23.2 66.5

Infra & Other CO 118.2 185.6 67.4 57.0 62.2

Equity 12.4 1.2 (11.2) (90.5) 56.3

Capital Transfers to LGU 63.4 62.0 (1.4) (2.2) 86.9

CARP-LO Compensation 7.9 - (7.9) (100.0) -

Net Lending 17.0 29.0 12.0 70.5 126.0

SURPLUS/(DEFICIT) (96.3) (127.3) (31.0) 32.3 45.6

% of FY

ProgramParticulars

Jan-Nov 2011

(Php bn)

Jan-Nov 2012

(Php bn)

2011 vs. 2012

Increase/(Decrease)

Jan-Nov 2012 Disbursement Performance

49

P i th P it f B d t R f



FISCAL DISCIPLINEFISCAL DISCIPLINEALLOCATIVEEFFICIENCYALLOCATIVEEFFICIENCY

OPERATIONALEFFECTIVENESSOPERATIONAL

EFFECTIVENESS

“SPENDING WITHINMEANS”

“SPENDING ON THERIGHT PRIORITIES”

“SPENDINGWITH MAXIMUM

IMPACT”

PUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE MANAGEMENT

Objectives of Public Expenditure Management

Progress in the Pursuit of Budget Reforms

50

Progress in the P rs it of B dget Reforms



Tighter Alignment of the Budget with Priorities

– 2010: Sustained use of Zero-Based Budgeting to identify and eliminate inefficient andineffective programs and projects

– 2011: Alignment of the Budget with the five Key Result Areas (KRA) of President

Aquino’s Social Contract with the Filipino People – 2012: Introduction of Program Budgeting Approach to focus the Budget on identified

priority programs per Social Contract KRA

– 2013: Budget Prioritization Framework

Fast and Efficient Implementation of the Budget

– 2010: Disaggregation of Lump-Sum Funds into specific programs and projects tomake budget execution faster and more transparent

– 2011: Early Bidding of Projects, stopping short of award, before enactment of NationalBudget to fast-track procurement

– 2011: Expansion of the Philippine Government Electronic Procurement Portal(PhilGEPS) to establish a Virtual Store with an Online Payment Facility

– 2012: Creation of Account Management Teams at the DBM

– 2013: Introduced policy for One-Year Validity of Appropriations to enhance fundingpredictability


51




Strengthening Performance Budgeting

– 2011: Reviewed the Organizational Performance Indicator Framework to ensure thatagency outcomes and major final outputs are aligned with the Social Contract

– 2011: Started harmonizing all government performance management systems into a

single Results-Based Performance Management System (RBPMS) – 2012: Introduction of Performance-Based Incentive System to promote meritocracy

and good public service delivery

Transparency & Participation in the Budget

– 2010: Formulation of government-Civil Service Organization (CSO) principle ofconstructive engagement

– 2011: Introduction and enforcement of Budget provision on the mandatory disclosureby agencies of their respective budget information (Transparency Seal)

– 2011 : Start of Departments and GOCCs implementing Agency-CSO BudgetPartnerships in budget preparation

– 2011: Use of technology to promote transparency: Priority Development AssistanceFund (PDAF) webpage, budgetngbayan.com

– Piloting of Bottom-Up Budgeting Approach in 595 municipalities which resulted in P8.4billion in community-developed programs and projects


52




Output

s:

Major

Strategies:

1. Build-UpCredibility of

PFM

1. Build-UpCredibility of

PFM

Results-BasedBudgeting

Treasury SingleAccount

Gov’t IntegratedFinancial MgtInfo System

Public Financial Management Reform Roadmap 2012-2016Public Financial Management Reform Roadmap 2012-2016

Better Mgtof Contingent

Liabilities

2. ReviewFund

ReleaseProcedures

2. ReviewFund

ReleaseProcedures

3. CapacityBuilding forCongress &

CSOs

3. CapacityBuilding forCongress &

CSOs

4. ImproveTreasuryCash Mgt

Operations

4. ImproveTreasuryCash Mgt

Operations

5. Developand

ImplementGIFMIS

5. Developand

ImplementGIFMIS


PFM – Public Financial ManagementCSO – Civil Society OrganizationGIFMIS – Government Integrated Financial Management Information System

53

DBM as Secretariat to the Cabinet Cluster of Good



Governance and Anti-Corruption

Good Governance and Anti Corruption Plan Framework

54

Select Transparency, Accountability, and Citizens’



Full Disclosure Policy for LGUs, DILG

Participatory Audit, COA

Empowerment Fund, DILG

Streamline Business Permits and Licensing System, DTI/DILG

Strengthening Internal Control Systems in Government, DBM

National Justice Information System, DOJ

Registry System of Basic Sectors in Agriculture, DBM

Revenue Integrity Protection Service (RIPS), Run After Tax Evaders (RATE) and RunAfter the Smugglers (RATS), DOF

Engagement Initiatives

55



2012 Adjusted Prog 2013

CURRENT OPERATING EXPENDITURE 1,464.5 1,599.0 79.7 9.2

Personal Services 593.5 640.6 31.9 7.9

MOOE 266.6 312.9 15.6 17.4Subsidy 19.7 42.9 2.1 117.7

Allotment to LGUs 218.6 241.8 12.1 10.6

Interest Payments 333.1 333.9 16.6 0.2

Tax Expenditure Fund 33.0 26.9 1.3 -18.5

CAPITAL OUTLAYS 328.3 380.4 19.0 15.9

Infra. and Other CO 252.4 297.1 14.8 17.7

Equity 2.1 2.0 0.1 -3.7

Capital Transfers to LGUs 71.3 76.3 3.8 7.0

CARP LO Compensation 2.5 5.0 0.2 100.0

NET LENDING 23.0 26.5 1.3 15.2

TOTAL 1,816.0 2,005.9 100.0 10.5

PARTICULARS% Share

2013

Levels (Php Billion)Growth

(%)

2013 Disbursement Program (Obligation Basis)

Source: General Appropriations Act 2013

56

Fiscal Outlook for 2013



Revenue outlook at 14.7% of GDP, Disbursements at 16.7% of GDP, Debt at 48% of GDP

Government consumption to register double digit growth due to expansion of theConditional Cash Transfer (CCT) program, routine maintenance of public infrastructure,implementation of PAMANA, as well as the Expanded Government Internship Program.

– Pantawid Pamilyang Pilipino Program of DSWD – Priority projects in health sector geared to attain the Millenium Development Goals

(MDGs), such as doctors to the barrios, expanded immunization, TB control programs

– Creation of teaching positions to close the teacher gap

– Peace building and development in conflict-affected areas

Growth in capital outlays of 35.7% to P413.2 billion (cash basis), or 3.5% of GDP, whichtranslates to increased allocations for:

– DPWH infra projects

– DA-NIA irrigation facilities

– Farm-to-market roads

– Infrastructure support to tourism, education (Basic Education Facilities Fund), andhealth (Health Facilities Enhancement Program)

Fiscal Outlook for 2013

57

Sectoral Allocation of National Government Expenditures



699.434.9%

509.225.4%

360.418.0%

347.317.3%

89.54.5%

2013 GAA

Social Services

Economic Services

Debt Burden

General Public Services

Defense

Sectoral Allocation of National Government Expenditures

613.4

33.8%

439.024.2%

356.119.6%

320.317.6%

87.24.8%

2012 GAA

General Appropriations Act

(in Php billion)

58

Regional Per Capita Allocation, FY 2013



Regional Per Capita Allocation, FY 2013

Particulars

2013

Regionalized

Budget Population

In Php BillionAmount

(in Php)Rank

Total 996.23 99,240,310 10,038

NCR 131.22 12,194,394 10,761 2

Luzon 410.47 43,306,613 9,478 3

Visayas 194.88 20,114,242 9,689 2

Mindanao 259.66 23,625,061 10,990 1

Allocation Per Capita

Allocation Per Capita, 2012 Allocation Per Capita, 2013

in Php in Php

59

Policy Thrusts and Other Plans/Projects for 2013



y j

One-year validity of MOOE and CO appropriations to encourage agencies to planahead and to minimize the gap between fiscal program and the obligation budget.

Allowance of pre-procurement activities immediately after submission of the budget toCongress to facilitate project implementation within the one-year validity period.

Adoption of DPWH as principal infrastructure agency of government to acceleratecompletion of priority program targets in line with the Social Contract.

Program Budgeting Approach in the creation of the budget, where the basic idea is

that budget information and decision making should be structured according to theobjectives of the government.

60

Policy Thrusts and Other Plans/Projects for 2013



Implementation of the Results-Based Performance Management System (RBPMS)and the Performance-Based Bonus (PBB) to push for better planning, programmingand execution capacities in the agencies.

Rolling out technological innovations to speed up budget release and procurementtransaction, improve information flows and strengthen transparency andaccountability:

– PhilGEPS ePayment facility

– Electronic payment through ATM of monthly pension of retired uniformedpersonnel

– Cashless Purchase Card

– National Payroll System

– Electronic and mobile banking for CCT beneficiaries

– Single Treasury Account

y j

61



Trade, Industry and Investments

Secretary Gregory L. Domingo

Department of Trade and Industry

62

Contents



Contents

I. Enabling Business Environment for Global Competitiveness

Improving PH Competitiveness

Philippine Business Registry (PBR)

Nationwide Streamlining of Business Permits and Licensing Systems

(BPLS) Program in the PH

Conformance to International Standards

Industry Development and Promotion

II. Improving Productivity

Double Exports: Move Up the Value Chain

Better Business Environment to Increase Investments

Sustainable Employment through MSME Development

III. Ensuring Consumer Welfare and Protection

IV. Outlook for 2013

V. Policy Thrusts and Other Plans for 2013

VI. Harnessing the Potential of Mindanao as a Viable Investment Proposition

63

Enabling Business Environment for Global Competitiveness



DTI and DILG set a unified form for permit and licensing in all cities &municipalities and reduced the follow ing:

− Steps to 5 or less

− Processing time to 10 days (new applications) and 5 days(renew als)

− No. of signatories to 5 or less

To expand reforms to all 1,634 municipalities

823 LGUs have undergone BPLS process re-engineering as ofDecember 2012

Conducted streamlining trainings to1,004 LGUs

MOA signed by DTI, DILG and DOST tow ards BPLS Automation (e-BPLS) to promote the useof ICT in business permitting processes

Launchedon 27 Jan 2012, w ithPresident Aquino as

guest of honor

21,571 ow ners/clients registered in2012

Enables online registration of business names (DTI);allow s issuance/validation of BIR TIN, and Employer

Registration Nos. (ERN) w ith SSS, PhilHealth, Pag-IBIG

Launched PBR Kiosk, allow ing SEC-reg isteredcompanies to get SSS, PhilHealth and Pag-IBIG ERNs

Reduced processing time from4-5 days to 45 minutes

Linked w ith BPLS of QC in Mar 2012. Connectivity ofValenzuela City LGU completed in Oct 2012, aw aitingSoft Launch. Other LGUs to follow

Moving tow ards migrating PBR and BNRS in the cloudcomputing environment in 2013

g p

Improving Philippine Competitiveness

Jumped 10 notches to 65th place in the WEF GlobalCompetit iveness Report 2012-2013, one of the fewcountries that improved drastically.

Climbed to 61st from 77th in the World Economic Freedomreport released by Canada’s Fraser Institute, ranking 2nd only to

Singapore in the ASEAN. Improved to 97th from 107th in The Heritage Foundation’s 2013 Index of Economic Freedom due to improvements on investment

freedomand freedom from corruption and legislative reforms that enhance entrepreneurial development.

Business Permits & Licensing Systems (BPLS)Philippine Business Registry (PBR)

Business Name Registration System (BNRS)

329,390 registrations for 2012

Reduced BN registrationprocessing time from 4-8 hours to 15 minutes

64

Enabling Business Environment for Global Competitiveness



PH Delisted from the list of Notorious Markets in December 2012 after 6 years of being listed, putting the PH closer tobeing removed from the US Trade Representative (USTR) Office’s Special 301 Watch List of economies with weakintellectual property regimes thatcould face US trade sanctions.

Accreditation of Conformity Assessment Bodies. Accreditation is the independent evaluation of conformityassessment

bodies against recognized standards. In 2012, the Philippine Accreditation Office (PAO) accredited 23 testing andcalibration laboratories against ISO/IEC17025, conducted 101 surveillance visits to ensure corrective actions have beenimplemented on nonconformities, held 63 special assessments, and conducted 5 office-based assessments and 31 witnessaudits to ensureconfidence in the conformityassessmentcertificates issuedbycertification bodies.

Trade Remedy Measures and Trade Defense that impose safeguard measures to allow local industries to adjust tocompetition. In 2012, DTI, through the Bureau of Import Services (BIS), investigated 8 trade remedy cases (for products

like steel angle bars, testliner boards, clear float glass, tinted float glass, newsprint, wheat flour, galvanized iron and pre-

painted galvanized iron) and monitored 9 trade defense cases of PH exporters facing trade remedy cases in foreignmarkets.

Conformance to International Standards

Crafted 17 Industry Roadmaps in 2012 in line with the formulation of a comprehensive national industrial policy that shallspell outopportunities and promote the growth of forward & backward linkages in priorityand high-potential growth sectors

2012 Investment Priorities Plan. 13 preferred economic activities: Agriculture/Agribusiness and Fishery, CreativeIndustries/Knowledge-based Services, Disaster Prevention, Mitigation & Recovery, Energy, Green Projects, Hospital and

Medical Services Projects, Infrastructure and PPP Projects, Iron & Steel, Mass Housing, Motor Vehicles, R&D, Shipbuildingand Strategic Projects

Industry Development and Promotion

65


Resilient Strong and Effectively Diversified Exports



Resilient, Strong and Effectively Diversified Exports

24 24 27 27 30 3129 22 31

2421

11 12 13 14 17 1921 16 20

2527

0%

10%

20%30%

40%

50%

60%

70%

80%90%

100%

Electronics (US$B) Non-Electronics (US$B)

PH’s 2012 Merchandise Expor t Performance Among TopPerforming :− FY 2012 exports expected to surpass the US$48.3 B and

US$51.5 B recorded in 2011 and 2010, respectively− Contributed to 11.3% growth of Gross International Reserves of

US$83.8 B in 2012 vis US$75.3 B in 2011

All Time High US$13 B Services Exports (Jan-Sep 2012) :− Remarkable 14.8% grow th over Jan-Sep2011

Net Exports: Main Contributor to 2012GDP growth

Improving Electronics with 13.33% y-o-y growth in November2012

Robust growth of non-electronics exports continues, lessening

dependence on electronics-based products− Machinery and transport inc. shipbuilding ↑86.09%, Auto parts

↑32%,Fruits and vegetables ↑17.5%, Seafood ↑17%

− Products that exceeded US$2 B mark: f ood products w ithUS$2.61 B and ↑10.6%; construction materials, ↑24.24%

− Coco Water sales 100.34% over the targeted exports salesreaching US$120.41 M

Markets Shifting− The shift is a result of the combined effects of increased

consumer incomes in the larger populations of developing Asiaeconomies w ith increasing middle income earners w ith evolvingtastes and preferences, as well as changes in the general global

supply chain propelled by Free Trade Agreements (FTAs).

PH ExportMarkets Jan-Nov 2012(US$M) % Share FY2002 % Share

TOTAL PH 48,026 100.00 35,208 100.00

1. Japan 9,168 19.09 5,295 15.04

2. USA 6,893 14.35 8,683 24.66

3. China 5,743 11.96 1,356 3.85

4. Singapore 4,524 9.42 2,472 7.02

5. Hong Kong 4,395 9.15 2,359 6.70

6. South Korea 2,602 5.42 1,339 3.80

7. Thailand 2,258 4.70 1,083 3.08

8. Germany 1,838 3.83 1,386 3.94

9. Taiwan 1,757 3.66 2,485 7.06

10. Netherlands 1,440 3.00 3,055 8.86

Products and Markets Diversified

Top Export Markets, 2002 and 2012 (Jan – Nov)

66


Aggressive Export Promotion



Aggressive Export Promotion

Enhanced MarketAccess− Jumped to 72nd from 92nd (out of 132) in World

Economic Forum’s 2012 Enabling Trade

Report. PH ranks 14th under Market Access .

Spreading the benefits of FTAs through 116

Doing Business in Free Trade Areas (DBFTA)Sessions in 2012

− Wider opportunities for 11,169 local businesspersons due to knowledge of preferential

trading arrangements made available by FreeTrade Agreements (FTAs).

− PH utilization rate of ASEAN-Australia-New

Zealand Free Trade Agreement (AANZFTA) up76.1% in 2011 from 64.2% in 2010 and higher

than that of the otherASEAN economies.− PH has existing FTAs with the

ASEAN, Japan, Korea, China, India, Australia

and New Zealand. FTAs give manufacturers ofPH goods ready access and preferential tariff

rates in the markets of the country’s tradingpartners.

2012 Export Promotion Activ ities

Type of Activity Numberof

Activities

ExportSales

(US$M)

CompaniesAssisted

TradeInquiries/

Buyers

Signature Event(Manil a FAME)

2 49.87 570 7,503

Overseas Trade Fair 18 134.72 174 7,360

Outbound BusinessMatching

12 49.00 189 945

Inbound Business

Matching

15 8.10 350 400

Total 47 241.69 1,283 16,208

In 2012, Philippine Trade and Investment Centers (PTICs)overseas secured 1,069 new importers for PH products,served 2,729 export opportunities, assisted 10,853 PH

exporters andbusinesses andsent 919 buyers to the PH.

303 new export suppliers nationwide have beenidentified through 20 hand holding sessions under theRegional Interactive Platform for Philippine Exporters

(RIPPLES).

Focused Strategic Promotional Activities resulted toover US$241 M incremental exportsales in 2012.

67

Better Business Environment to Increase InvestmentsIncreasing BOI-PEZA Approved Investments



Increasing BOI PEZA Approved Investments

BOI-PEZA Approved Investments (in PhP Billion)

443.1

299.5

506.5

657.3 672.3

2008 20 09 2010 2011 20 12

Total BOI-PEZA approved investmentsamounted to PhP672.3 billion (US$15.9billion), which is 2.3% higher than 2011.

134,489 jobs to be generated

Top 5 Sectors: Manufacturing;Electricity, Gas, Steam & Air ConditioningSupply; Real Estate Activities; Transportation &Storage; and Accommodation & Food ServiceActivities

Top 5 Foreign Sources:Netherlands, Japan, US, Singapore and Korea

Big ticket projects from: Masinloc PowerPartners Co., Ltd.; Shell Gas and EnergyPhilippines Corporation; Therma Visayas, Inc.;

Southwest Luzon Power GenerationCorporation; Philippine Long Distance TelephoneCompany, Inc.; Semirara Mining Corporation;South Luzon Thermal Energy Corporation; SMPrime Holdings, Inc.; Palm Concepcion PowerCorporation; and Toledo Power Company

Project Cost

2012 PerformanceBOI-PEZA Approved InvestmentsContinue to grow from 2008-2012

68

Growing Investments



All-time High Record of Inbound Investment Missions in 2012 Influx of foreign investor visits to PH manifesting strong confidence on the domestic business climate DTI through BOI, facilitated the inbound missions of 509 companies/organizations, which is 64% higher than 2011. Notable

is the 106% increase in the number of business delegations (multi-company) that visited the country (33 delegations from16 in 2011).

Interest coming from non-traditional markets in Europe (i.e., Russia and Turkey); Middle East (i.e., Oman, Iran, Qatar,

Kuwait, Abu Dhabi); and Africa (i.e., Nigeria) is a pos itive development. Many companies from various countries, such as Sweden, Hong Kong, Israel, Turkey have expressed interest in investing

in the country, covering various sectors such as telecommunications, BPO, manufacturing, agribusiness, aircraft,electronics, among others.

Company-Directed Outbound Investment Missions to Strategic Markets Resulted in meeting many companies that conducted subsequent inbound visits to the PH.

Conducted 15 company-directed outbound missions to the following countries: Singapore (3); Taiwan (2); Korea (2); Japan

(1); Hongkong (1); China (1); Malaysia (1); Australia (1); Italy (1); Middle East (1); and Cambodia (1).

PH as Preferred Investment Site PH's improving cost competitiveness has made the country a preferred investment site.

Ten (10) foreign firms, with a combined estimate of PhP16.7 billion (US$0.40 billion) worth of investments, havemigrated to the country from neighboring Asian countries. Half of these new investments came from Japanese

investors. The migrant companies that have established operations in the country are:

1) Murata Manufacturing Co., Ltd. 6) New Kinpo/Cal-Comp Electronics2) Luen Thai 7) Superi

3) Canon Busines s Machine (Phils.) Inc. 8) Fashion Focus4) Charoen Pokphand Foods Philippines 9) Leader Electronics

5) Molex Integrated Products Philippines 10) Shang-hai Zephyr International

69




Assisted 5,894 microenterprises (MEs) in 2012 throughthe Rural Microenterprise Promotion Program (RuMEPP)bringing the total number of MEs served to 12,454 or 83%

of the targeted 15,000 for 2007-2013. The Program alsogenerated 7,373 jobs in 2012 increasing the cumulative

accomplishment to 58,960 jobs.

The Access of Small Enterprises to Sound LendingOpportunities (ASENSO), formerly known as the SME

Unified Lending Opportunities for National Growth(SULONG) released PhP271.55 billion to MSMEs

translating to 3.87 million jobs since its inception in 2004.For the period Jan-Dec 2012 (preliminary), the programreleased PhP29.34 billion to MSMEs and supported

388,067 jobs Conducted 78 SME Caravans (training s essions )

nationwide benefitting 18,749 participants

Assis ted 193 enterprises graduating to the marketreadinessstage

Developed 937 new MSMEs for 11,237 farmer

beneficiaries through the DTI-Comprehensive AgrarianReform Program (DTI-CARP) (Jan-Dec)

Ass isted 799 Agrarian Reform Communities and 171 othercommunities, generating PhP1,127 million total

investments, PhP2,409 million sales and 68,498 jobs

Targets Actual

a. No. of SMEsassisted

70,073 74,910

b. Jobs generated 508,975 577,553

c. Sales

• Domestic PhP 13.958 B PhP 16.037 B

• Exports US$582.14 M US$ 694.69 M

d. Financing

• ASENSO -PhP 29.34 B

(prelim)

• Micro-EnterpriseLending

- PhP 27.7 B

e. InvestmentsGenerated

PhP 83.466 B PhP97.301 B

Source: DTI – Regional Operations and Development Group

MSME Sector Accomplishments 2012

70




Created 1,427 new MSMEs and assisted 3,740existing MSMEs through the Nationwide IndustryCluster Capacity Enhancement Program(NICCEP) since its launch in May 2012. Thesenew MSMEs invested PhP4.760 billion, created

97,243 jobs and generated PhP5.499 billiondomestic sales and US$1.051 billion worth ofexport sales.

NICCEP aims to enhance the capacity of selectedindustry clusters throughout the country toplan, implement, facilitate service delivery, evaluate

projects, and improve industry competitiveness andimprovement in the business environment.

- (Industry clusters:

abaca, bamboo, banana, cacao, coconut/coco

coir, coffee, dairy, fine

jewelry, GDH, calamansi, meat (fresh and

processed), metals &metalworks, milkfish, muscovado, organic

fertilizer, pangasius, pineapple, processed

food, renewable energy, seaweed, veggie

noodles, wearables & homestyles and wood)

Investments PhP 4.760 B

Jobs created 97,243

Domestic Sales PhP 5.499 B

Exports Sales US$ 1.051 B

MSMEs Created 1,427

MSMEs Ass isted 3,740

No. of Tra inings Conducted 479

No. of Beneficiaries Trained 10,777

Amount of Loans Facilitated PhP 167 M


Performance of NICCEP, 2012

71




Policy Thrusts and Plans/Projects for 2013

Big Push for SMEs

Adoption of a 3-year program to promote anddevelop industry clusters to make SMEs in theindustryand service sectors globallycompetitive.

Components:- Product Development & Market Promotion

- Equitable Financing/Credit Assistance- Shared Service Facilities- Micro-enterprise Development

Shared Service Facilities (SSF) Project2013 Targets:

- 1,000 Shared services facilities established- 12,000 jobs (direct)- 10,000 MSMEs assisted

IndustryClusters

SME Roving Academy

Diskwento Caravan

OTOP Store Marketplace

Philippine Traceability for Revitalized Agricultural

Competitiveness Enhancement (P-TRACE)Program

PDP Targets by

2016

MSME Sector

Accomplishments2012

a . Merchandise Exports US$ 91.5B

US$ 694.69 Mb. Services Exports US$ 28.9B

c. Approved Investments US$ 3,796.47B

PhP 97.301 B

(InvestmentsGenerated)

d. Jo bs Generated

• SMEs 2 M 577,553

Industry Cluster Development Targets, 2013

Generate investments amounting to PhP6.792 billion

Create about203,666 jobs

Generate domestic sales ofPhP6.840 billion

Earn exports of US$448.0 million

Create about1,794 MSMEs and assist 6,349 MSMEs

Conduct 572 trainings benefitting around 5,969MSMEs/individuals


MSME Sector Performance vs. PDP Targets

72

Ensure Consumer Welfare and Protection

Strengthened Enforcement Activities and Consumer Responsiveness



DTI and DOTC signed Joint Administrative Order No. 1, Series of 2012 that enforces the AirPassenger Bill of Rights to educate airline passengers on their rights, and provide a level playingfield among airline companies.

Supported launch of Harinang Pinoy, a flour to be used specifically for the production of Pinoy tastyand Pinoy pan de sal. Use of Harinang Pinoy makes Pinoy Tasty P1/450gm cheaper than regularbrand, and Pinoy pan de sal P0.50/10 packs cheaper

170,765 consumers benefitted from 240 Diskwento Caravans nationwide in 2012, generatingPhP97.411M sales.

Intensified weekly price monitoring of basic necessities and prime commodities

Resolved 85% of consumer complaints in 2012 within the prescribed time of 7 working days forcomplaints resolved through mediation and 20 working days for complaints resolved througharbitration

Monitored 133,269 establishments for compliance to Fair Trade Laws in Jan-Nov 2012. Ofthis, 431 were found not complying and 175 were penalized. Imposed fines accumulated toPhP1,658,217.

DTI through the Philippine Shippers Bureau (PSB) revoked accreditation of an erring sea freightforwarding company and issued public advisory against unaccredited freight forwarding companies.

4 LPG dealers received DoE- DTI Bagwis Award in March 2012

73

Ensure Consumer Welfare and Protection

Strengthened Enforcement Activities and Consumer Responsiveness



Issued 65 new PS license/certificates issued and 1,600 Import Commodity Clearance (ICC)certificates for critical consumer products, e.g., electronics, motorcycle helmets as of December 2012.(preliminary report)

Regulation of Importation of Used Motor Vehicles. Issued 2,384 Certificates of Authority to Import

covering 15,751 units in 2012

Accredited 13 truck rebuilding centers in 2012

Launched Manual for the Investigation and Prosecution of Intellectual Property Cases

DTI Direct Call Center attended to 53,381 calls in 2012, the bulk of which or 46% were about businessname and 33% on consumer welfare concerns

DTI Public Assistance Desk (PAD) attended to 12,707 clients in 2012, 81% of which were aboutbusiness name and 10% on consumer welfare matters

57.25% ave. consumer welfare index in the Pulse Asia Survey 2012 showing high level of consumerawareness towards basic consumer rights

74


Export Targets and Outlook



Actual Targets

2011 2012 2012 2013 2014 2015 2016

Value(US$B)

Growth Rate (%)

US$B GR US$B GR US$B GR US$B GR US$B GR US$B GR

TotalMerchandise

48.30 -6.2 48.03(Jan-Nov)

7.0 53.13 10 61.10 15 70.26 15 80.80 15 92.92 15

TotalServices

15.45 9.6 13.04(Jan-Sep)

14.8 17.77 15 20.43 15 22.48 10 24.72 10 27.20 10

TOTALEXPORTS

63.75 -1.69 61.06(Jan-Sep)

9.5 70.90 11 81.53 15 92.74 14 105.52 14 120.12 14

OUTLOOK FOR 2013 Bright prospects for electronics exports as new investments and expansions will operate in 2013

Exports to be boosted by investment-driven projects

Strengthening of the peso compels industries to improve competiveness in non-price dimensions suchas innovation and differentiation, branding and positioning, production processes and value-enhancedafter-sales service

Wider access of higher-valued Philippine products and services to high growth economies such asEast Asia, Brazil, Russia, India, Middle East, Turkey and South Africa

75

Investment Outlook for 2013



• Very positive outlook for 2013. The realization of investment projects of many foreign investorsapproved in 2012 is highly expected. These include projects in sectors such as manufacturing andIT/BPO/Creative industries that thrive on the utilization of our skilled Filipino labor.

• Numerous investor queries and requests for assistance in the conduct of due diligence visits thisearly part of the year are expected to increase the number of inbound missions. Foreign posts arevigorously pursuing the conduct of inbound visits this year.

• To sustain growing investors’ confidence, promotion efforts to traditional markets (Japan, Korea,

Taiwan, China and US) will be intensified while strategically reaching out to developmentalmarkets with strong potential for outward investments (Russia, Brazil Middle East, among others).

• Implementation of the industry roadmaps will result in the conduct of more focused investmentpromotion campaigns that will identify investment areas to complete the supply chain.

• Successful governance reforms will result in an investment climate that will provide a level playingfield and best value for the investor’s money.

76

Harnessing the Potentials of MindanaoA Viable Investment Proposition



Banana- Davao region’s banana industry contributes about 75% of the total

exports of the region comprising.

Mango- Fast grow ing industry in the Davao region w ith massive expansion

of mango farms and exports fresh and processed mangoes

Coconut- The Cluster is diversifying coconut products to include food and

non-food dow nstream products, thereby strengthening theregion’s position as the top coconutproducer in the country.

Seaweed- Expansion of seaweed farms in potential areas in the region

targeting small fisherfolks in the coastal areas

Wood- The w ood industry involves the production of plantation species

for processing of construction materials, furniture and furnishings,woodw orks, pallets and boxes, and handicrafts for domestic andexport markets.

Mining- Davao region has large amount of mineral deposits particularly

gold, silver and copper. Palm Oil- A sunrise industry in the CARAGA region w ith big companies and

individual grow ers now into oil palm production.

Rubber- The region also boasts of its Rubber Industry w hich produces

and exports natural rubber in Asia. It envisions the country asone of the top 5 natural rubber producers in Asia by expandingdomestic and export market share by 25% in 5 years.

Tuna- The industry aims not only to parade fresh and frozen tuna to

the local and foreign markets but hopes to maximizebusiness opportunities by adding more tuna value-addedenterprises in the region.

- With a revived access to the pockets of seas in the w esternand central Pacific Ocean, stakeholders could deliver moreresults to investment, employment and trade.

Tourism- The Cluster promotes economically viable, socially acceptable,

culturally sensitive and environmental-friendly tourism projects.- Mindanao’s w inding coastlines and its lush and verdant forests

could open the gates for ecotourism in the area, therebycontributing to the country’s tourist arrivals.

ICT

- The industry is primarily driven by the grow th in the electronic

services or bus iness process outsourcing which includesof tware development, an imation, contact centers andtranscription.

Development and promotion of industry clusters, such as :

77

Harnessing the Potentials of MindanaoA Viable Investment Proposition



Other Plans, Policies and Thrusts

Strengthen direct trade and investment link (e.g., BIMP- EAGA Sub-Regional Cooperation)

Improve agricultural marketing-logistics system in Mindanao

(e.g., establishment of a Davao Food Terminal; Davao-Gensan Export Corridor Strategy)

Promote business/enterprise development through IndustryCluster & Value Chain Strategies w ith the objective of enhancingthe competitiveness of the priority industry clusters in Mindanao

Provide Shared Service Facilities (includes provision of the key technology, skil ls and critical equipmentand facili ties )

Prom ote & strengthen the existing 6 Agri-industrialEconomic Zones (PEZA) in Mindanao and develop 3 others inBukidnon, Davao & South Cotabato to attract investments

Intensify promotion of Mindanao asFood Basket

Recommend policies for the development of Mindanao (e.g.,

EOs on the creation of industry development councils for banana,rubber, cococoir,etc.)

Community-based Enterpr ise Development to be purposively pursued in the rural areas and barangays in collaboration withLGUs, DSWD, DOLE, DA and the LGUs.

Credit guarantee to faci li tate and ensure SMEs’ access to

commercial sources of finance and capital;

Propose the creation of Mindanao Development Fund forpriority projects (off-grid mini hydro, etc.)

78



Agriculture Sector

Secretary Proceso J. Alcala

Department of Agriculture

79

Contents



I. Agriculture and Fisheries Performance

II. Assessment of the Sector’s Performance vis-a-visthe Philippine Development Plan Targets

III. FY 2012 DA Accomplishments

IV. Prospects for the Agriculture and Fisheries Sector in2013

V. FY 2013 DA Thrust and Priorities

VI. DA Thrust and Priorities for the Mindanao Region

80

Agriculture and Fisheries PerformanceJanuary to December 2012, at constant 2000 prices



The agriculture and fisheries (A&F) sector posted a 2.74% GVA growth for 2012.

Value(million PhP)

↑↑↑↑ 4.26%

Crops Livestock Poultry Fisheries

↑↑↑↑ 1.1%↑↑↑↑ 4.59%

↓↓↓↓ 0.68%

Source: NSCB, January 2013

Crops Subsector

• Palay: ↑ 8.05%

• Corn: ↑ 6.27%

• Pineapple: ↑ 7.06%

• Rubber : ↑ 4.60%

• Coconut : ↑ 3.89%

Livestock Subsector*

• Dairy: ↑ 12.16%

• Hog: ↑ 1.71%

Poultry Subsector*

• Chicken: ↑ 4.61%

• Duck Eggs: ↑ 5.52%

• Chicken Eggs: ↑ 4.37%

Fisheries Subsector*

• Aquaculture ↑ 2.85%

*output growths

Gross Value Added in Agriculture and Fisheries, 2011-2012

81

2012 A&F Sector Performance



IndicatorsFY 2012Targets

Accomplish-ments

1. GVA increased (in %, at 2000 constant prices)

Agri & Fisheries SectorCropsLivestockPoultryFisheries

4.3-5.34.9-5.91.6-2.64.2-5.2

2.744.261.14.6

-.0.72. Rice Self-Sufficiency Ratio (%) 91..87 93.9*

3. Stable Average Inflation Rates among Basic FoodCommodities (%)

3.0-5.0 2.2

The sector has registered a positive growth for the past two years. However, growths are below the plan

target of4.3-5.3%;

Fisheries subsector has experienced a decline due to rising cost of fuel and implementation of

conservation policies that drove down fish catch The Food Staples Self-Sufficiency Program is on track, with the country producing record harvests of palay

(unmilled rice) at 18.03 million metric tons

Inflation rateson food for 2012 is down to 2.2%, with rates ranging only from 1.2% to 3.6%

*2011 Self-Sufficiency Ratio (SSR). 2012 SSR is yet to be released by BAS

The A&F sector has managed to sustain modest growths for the past two years

PDP Chapter 4: 2012 Targets and Accomplishments

82

FY 2012 DA Accomplishments



Major Final Outputs (MFO)/IndicatorsFY 2012Targets

CY 2012Accomplishments

Percentage

MFO 1.1 PRODUCTION SUPPORT SERVICES

Beneficiaries provided with production support services (e.g. seeds, planting materials, animals,

fingerlings, etc)Individuals 1,984,848 2,545,179 128.23

Groups 2,814 7,724 274.48

MFO 1.2 MARKET DEVELOPMENT SERVICES

Marketing agreements consummated 247 304 123.08

MFO 1.3 CREDIT FACILITATION SERVICES

Individuals or groups assisted to access either

credit, insurance, or guarantee

Individuals 32,981 31,103 94.31

Groups 202 186 92.08

DA Accomplishments for 2012

83






Percentage

MFO 1.4 IRRIGATION DEVELOPMENT SERVICESSSIPs installed and/or constructed 831 859 103.37

MFO 1.6 EXTENSION SUPPORT, EDUCATION, ANDTRAINING SERVICES

Training and training-related events conducted 53,401 57,752 108.15

MFO 2.0 REGULATIONS, DEVELOPED,IMPLEMENTED, MONITORED, AND ENFORCED

Regulatory documents issued 2,199,638 2,596,494 118.04

Incidence of avian influenza and foot & mouth

diseases 0% 0% 100.00

Regulatory documents (national single window

system) issued at the prescribed time 80% 100% 125.00


84






Percentage

MFO 3.0 PLANS AND POLICIES DEVELOPED,MONITORED, AND EVALUATED

Programs, and projects endorsed/approved 183 168 91.80

Plans distributed (e.g. FSSP and AFMP) 164 159 96.95

Agri and fishery policies issued 388 454 117.01


85

PDP Targets for 2013



Raise farmers and fishers incomes by 2% to 4% from 2012 level

Achieve 100% rice self sufficiency by 2013

Increase agriculture and fisheries GVA growth by 4.3% - 5.3% from 2012 level

Increase the total value of agriculture exports by 10% from 2012 level

86

Pursuing the Goals of thePhilippine Development Plan (PDP) 2011-2016



Towards a Competitive and Sustainable

Agriculture and Fisheries Sector

1. Improved food security and increased rural incomes;

2. Increased sector resilience to climate change impacts; and

3. Enhanced policy environment and governance.

87

Goal 1: Food security improved and incomes increased



Philippine Food StaplesSufficiency Program (FSSP) isgeared towards the attainment of100% rice self-sufficiency by end of2013.

Strategies: Frontload investments in irrigation, postharvest facilities and

mechanization

Focus on longer-term investments

Engage farmers associations/irrigators associations, LGUsand the private sector proactively

Increase cropping intensity

Ensure accessibility and affordability of other food staples toencourage the production and consumption of rice alternatives(demand management)

Access to affordable working capital (hybrid and certified) andimproved production technology

Increase NFA procurement as incentive to farmers

88




Promote the production of white corn and

cassava to ease the demand on rice Development of the yellow corn industry

for animal feed and potential exportmarkets

Encourage clustering approach to improve

productivity

Strategies:

Corn Livestock and Poultry

Conservation and improvement of genetic

materials Disease prevention, control, and eradication

Establishment of postharvest facilities

Explore and promote alternative nutritiontechnologies

Pursue possible export opportunities

89




Revitalize our traditional export

commodities (e.g. coconut, sugar, abaca,

banana, pineapple)

Open new markets for fruits andvegetables including organic produce

Establish production, postharvest and

processing facilities

Conduct R & D activities

Strategies:

High-Value Crops Fisheries

Regenerate marine resources through CoastalResource Management and Aqua-silviculture

projects

Protect marine resources through effectiveenforcement of fishery laws

Increase production through mariculture parks,hatcheries, and nurseries

Conduct R & D activities along stages of thevalue chain

Enhance food safety and product qualitymonitoring and management

90

Goal 2: Increased sector resilience to climate change impacts



Full integration of climate change (CC) adaptation measures across all functions,agencies, programs, plans of the DA.

Strategic Objectives:

1. To increase the adaptive capacity and productivity

potentials of agriculture and fisheries livelihood by modifyingcommodity combinations to better meet weather issues andnatural resource endowments;

2. To redefine or remap the Strategic Agriculture and Fisheries Development Zones (SAFDZ) by including climate changevulnerabilities as part of mapping variables;

3. To redefine the agriculture development planning framework as a basis of agriculture development planning byincluding key factors/variables associated with climate change;

4. To develop a new framework and plan for the provision of “new” government agriculture services towards theaccelerated development of climate smart agriculture andfisheries industries.

91

Goal 2: Increased sector resilience to climate change impacts



DA Systems-Wide Climate Change Programs:

Mainstreaming climate change adaptation andmitigation initiatives in agriculture (AMIA)

Climate Information System

Philippine Adaptation and Mitigation inAgriculture Knowledge Toolbox

Climate-Smart Agriculture Infrastructure

Financing and Risk Transfer Instruments inClimate Change

Climate-Smart Agriculture and FisheriesRegulations

Climate-Smart Agriculture Extension System

92

Goal 3: Enhanced policy environment and governance



National Convergence Initiatives

Harmonization of support services on the ground that should result in elimination of wasteful duplication,

better quality of services and wider coverage.

Strategies:

DA-DAR-DENR DA-DSWDDA-DPWH

flood control and water

impounding for

irrigation

cash-for-work in paddy

construction, irrigation canal

desilting and coconut

replanting and salt-making for

coconut fertilization

93

Core Public Investments



Irrigation

Farm-to-market roads, fish ports, postharvest facilitiesand equipment

Trading Centers

Research and development

Regulatory and quarantine services

High-quality genetic materials

Crop, livestock and fisheries protection and disease

prevention programs

Avian-flu free and FMD-free without vaccination status

Soil and water conservation and management program

Through good governance and political will , we shall continue to rationalize

government support and investments on the followingpriorities:

94

DA Thrusts and Priorities for the Mindanao Region



A&F Sector Goal:

… A dynamic and sustainable agriculture and agribusiness

sector with world-class, socially and environmentally responsible farms bringing about a progressive and

food-secure Mindanao…

In line with this, the DA will pursue interventions insupport to the Mindanao 2020 Strategies:

Improve and adopt farming and processingtechnologies for high value commercial crops, and aimfor more sustainable fishing industries

Further develop and promote the Halal industry

Improve investments in research, development, and

extensionIntensify promotion of agriculture and fisheriescourses

Mindanao 2020:

95



Department of Tourism

Secretary Ramon Jimenez, Jr.

Tourism Sector

96

Contents



I. Awards and Citations

II. Actual Performance vs. Target

III. Marketing Initiatives for 2012

IV. Highlights of Accomplishments

V. Tourism Road Infrastructure Program

VI. Tourism Targets

97

Awards and Citations, 2012

Citations and Awards Organization



Citations and Awards Organization

PH – Top 12 Hottest Destinations in 2013 Conde Nast Traveller

PH – One of the 15 Hottest Travel Destinations of 2013 Travel+Leisure

PH – One of the 10 Best Regions to Travel in 2013 Lonely Planet

PH – One of the Travel Destinations in 2013 Buceadores (Spanish Magazine)

Boracay – Top Destination for Relaxation Agoda.com

Boracay – 2012 Best Island in the World Travel+Leisure

Boracay – Top Best Beach in Asia Trip Advisor

Tubbataha – CNN Travel’s 50 Best Dive Sites CNN World

Palawan – No. 4 Holiday Destination in Asia Smart Travel Asia

PH – Best Diving Destination Marine Diving Fair – Tokyo

Gold Award for Creative Theme Development Expo 2012 – Yeosu, Korea

PH - Best Outbound Tourist Destinations in ChinaOriental Morning Pos t(Consumer Poll)

98

International Visitor Arrivals

Visitor Arrivals Arrivals by Year



0 500 1,000 1,500

Germany

UK

Malaysia

Hong Kong

Canada

Singapore

Australia

Taiwan

China

Japan

USA

Korea

2012 2011Visitor arrivals In thousands

Growth

Rate

11.5%

4.5%

9.9%

3.1%

19.1%

12.0%

7.6%

5.3%

5.9%

23.8%

8.4%

9.5%

3.5M

3.9M

4.3M

2010 2011 2012

3.5M4.3M

5.5M

6.8M

8.2M

10.0M

2011 2012 2013 2014 2015 2016

Visitor Arrivals Arrivals by Year

Projected Arrivals

Actual Projected

99

International Visitor Receipts

Visitor Receipts (In US$ Million) Visitor Expenditure (In US$)



2,428.72,236.0

2,490.22,994.0

3,817.84,864.0

6,391.4

8,297.7

10,774.6

2008 2009 2010 2011 2012 2013 2014 2015 2016

74.9 75.8 83.9 91.9 93.0

629.4 668.9 672.3738.7

893.6

2008 2009 2010 2011 2012

Average Daily Expenditure Tourist Per Capita

9.4

8.8

8.0 8.0

9.6

2008 2009 2010 2011 2012

CAGR = 5.2%CAGR = 5.2%Average Length of Stay (In Nights)

CAGR = cumulative average growth rate

100

Domestic Travellers

Top Overnight Destinations Domestic Travelers by Year



0 175 350 525 700

Negros Oriental

Clark

Iloilo City

Bohol

Davao City

Cagayan de Oro Ci ty

Batangas

Albay

Baguio City

Puerto Princesa City

Lapu La pu City

Cebu City

Boracay Island

Metro Manila

(Partial as of June 2012)

Domestic Travellers Foreign Tra vellers

23.4M 25.0M

30.3M

37.5M40.7M

2008 2009 2010 2011 2012

37.5M

40.7M

44.7M47.1M

51.7M

56.1M

2011 2012 2013 2014 2015 2016

CAGR = 6.1%

CAGR = 10.6%

* Estimate* Estimate

TotalTotal(in(in MnMn))

%%of totalof total

974.4974.4 19.6%19.6%

702.8702.8 14.1%14.1%

613.3613.3 12.3%12.3%

396.3396.3 8.0%8.0%

359.3359.3 7.2%7.2%

339.0339.0 6.8%6.8%

290.8290.8 5.9%5.9%

281.2281.2 5.7%5.7%

200.1200.1 4.0%4.0%

184.4184.4 3.7%3.7%

171.8171.8 3.5%3.5%

152.4152.4 3.1%3.1%

151.5151.5 3.0%3.0%

150.1150.1 3.0%3.0%

Projected Domestic Travelers

101

Room Capacity, 2012

DestinationsAvailable

RNumber of

E t bli h t

New Accommodation Facilities in 2012

N R



DestinationsRoom Establishments

Northern PH 71,804 2,248

NCR 31,790 320

Central Luzon 15,024 489Other Regions 24,990 1,439

Central PH 61,978 3,220

Western Visayas 15,200 635

Central Visayas 27,447 1,306

Other Regions 19,331 1,279

Southern PH 28,922 1,405

Northern Mindanao 8,113 380

Southern Mindanao 9,613 404

Other Regions 11,196 621

Total PH 162,704 6,873

Name Rooms

Fairmont Hotel and Raffles Suites 549

Quest Hotels & Conference Ctr Cebu 427

Calyx Center – Cebu 221

Bellevue Resort - Bohol 159

Tunes Hotel – Cebu 150

Luxent Hotel – Quezon City 116

Dohera Hotel – Cebu 100

Microtel Accropolis – Quezon City 84

Hotel Expansion Program in Select Destinations

NameAdditional

Rooms

Aklan (Boracay Island) 1,599

Bohol (Panglao Island) 1,250

Metro Manila 1,123

Cebu/ Lapu Lapu/ Mandaue 646

102

DOT Marketing Initiatives for 2012



Participated in over 50 major travel fairs around the world including Asia-Pacific, Europe, NorthAmerica and India and introduced “It’s More Fun in the Philippines”

Organized over 70 familiarization tours for travel agents and media to help generate a higher levelof awareness on the country

Tapped new source markets such as Indonesia and Thailand

Organized Philippine Tourism Sales Missions to provide a platform for business meetings between

Philippine delegates and their foreign counterparts

103

Highlights of 2012 Accomplishments

Issuance of 14-day visa-free entry for Indian Nationals holding American Japanese Australian



Issuance of 14-day visa-free entry for Indian Nationals holding American, Japanese, Australian,Canadian, Singapore, Schengen, and British (AJACSSUK) visa

Approval by Congress of the bill eliminating the Common Carriers Tax

Designation of the following tourism enterprise zones which will generate investments andemployment: Ciudad de Victoria (Bulacan), Resorts World Manila Queen’s Castle

Implementation of the media plan for the Philippine Tourism Branding “It’s More Fun in thePhilippines”

Signing of convergence programwith the Department of Public Works and Highways

104

Tourism Road Infrastructure ProgramDOT-DPWH Convergence Program

In Million Pesos



1,390

7,920

12,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013

In Million Pesos

P12 billion programmed for construction, improvement, rehabilitation,widening of local roads leading to tourist destinations

105

2013 2014 2015 2016

Tourism Targets



2013 2014 2015 2016

International Visitors(Million)

5.5 6.8 8.2 10.0

Inbound Receipts

(Billionl Pesos)205.4 269.6 350.4 455.0

Domestic Travelers(Million)

44.1 47.7 51.7 56.1

Domestic Receipts(Billion Pesos)

1,298.6 1,409.2 1,607.1 1,852.1

Total Visitor Receipts(Bilion Pesos) 1,504.0 1,679.1 1,957.5 2,307.1

% Share to GDP 6.7 7.0 7.8 8.7

Tourism Employment(Million)

4.9 5.4 6.3 7.4

% Share to NationalEmployment

13.0 14.2 16.2 18.8

106



Energy Sector

Secretary Carlos Jericho L. Petilla

Department of Energy

107

Contents



I. 2012 Accomplishments

II. 2013 Policy Thrusts

III. 2013 Outlook

IV. Plans and Programs for Mindanao

108

Primary Energy Supply Mix

2012 *2011



109

2012

Consumed 40 million tons of oil equivalent

(MTOE) with:o 60% energy self-sufficiencyo 41% share of renewable energy (RE)o 49% green energy (RE and natural gas)

Oil31%

Natural Gas

8%

Coal

20%

Hydro6%

Geothermal22%

Biomass

12%

Wind

0%

Solar

0%

Biofue ls

1%

* preliminary

Consumed 42 million tons of oil equivalent(MTOE) with:o 57% energy self-sufficiencyo 39% share of renewable energy (RE)o 47% green energy (RE and natural gas)

Oil31%

Coal

22%

Geothermal21%

Biomass12%

Natural Gas7% Hydro

6%

Biofuels1%

Solar/Wind0%

Household Electrification

Provided 3 450 households (target beneficiaries) with electricity access under



110

Provided 3,450 households (target beneficiaries) with electricity access underHousehold Electrification Program (HEP)

Extended access to electricity to 6,257 sitios* (187,710 households) out of thetargeted 6,007 thru Sitio Electrification Program (SEP) .

Note: A sitio is comprised of 30 households on the average

Power Industry Reforms

ImplementationofTargeted Power Industry Reforms



111

Launched the Retail Competition and Open Access (RCOA) for competitivemarkets

• Transition period (26 December 2012 to 25 June 2013)

• Full commercial operation (26 June 2013)

Prepared Energy Roadmap for Mindanao• Included the implementation of Interim Mindanao Electricity Market (IMEM)

NEDABoard approved Agus and Pulangi Rehabilitation Project

Renewable Energy (RE)

Promoted the Use of Renewable Energy Resources



RE Resource Awarded Contractsin 2012

Capacity(in MW)

Biomass 7 44.26

Geothermal 8 1,176.68

Hydropower 53 1,002.740

Solar 27 272.26

Wind 6 70.00TOTAL 101 2,565.94

112

Target Number of Vehicles on Alternative Fuels

Promoted the Use of Alternative Fuels for Public Transport



113

2012

Number of Vehicles

CNG Bus 61

Auto LPG 19,052

E-Vehicles 650

Biofuels Blending

Ethanol 10%

CME 2%

Energy Resource Development

Oil and Gas



114

Fifteen (15) prospective areas were offered in the4th Philippine Energy Contracting Round (PECR) foroiland gas

Twenty (20) bid proposals were received for 11target areas offered from local and internationalplayers

There are existing 26 active service contracts (SCs)of which 22 are operated by 18 foreign companies

Coal

Thirty-eight (38) prospective areas were offered inthe 4th PECR

Received 69 proposals for 27 target areas offered

2013 Policy Thrusts

Maintain 60% energy self-sufficiency



115

Climate proof the energy system

o Vulnerability assessment

Promote low-carbon future

o Expand energy labeling program and move towards standardization

o Roll out of electric vehicles (EVs)

o 30% by 2030 (alternative fuels)

Promote and adopt smart technologies

Facilitate implementation of strategic infrastructure

Formulate Geographic Energy Plans

Outlook for 2013

Energize 9,860 households* through the HEP and 4,982 sitiosunder SEP



116

783.7 MW to go online

o Luzon - 737.7-MW

o

Visayas - 8.0-MWo Mindanao - 38.0-MW

Deploy 20,000 electric tricycles (E-trikes) from 2013-2014

Deploy 200 Compressed Natural Gas (CNG) buses

Need a minimum of PhP 49 Billion investment for infrastructure

Note: * Usingmatured RE technologiessuchasPV SHS, PV streetlights andmicro-hydro systems

Required Investment in the Energy Sector(in Php Million)

2013 53,285.7

2014 280,733.7

2015 257,820.7

2016 182,098.4

Plans and Programs for Mindanao

Establish Interim Mindanao ElectricityMarket (IMEM)



117

Promote energy exploration anddevelopment

o Oil and Gas (areas in Mindanao offered

include those in Sulu Sea andCotabato)

o Coal (areas in Mindanao offered includeAgusan del Norte, MisamisOriental, Agusan del Sur, Surigao del

Sur, Compostela Valley, DavaoOriental, Lanao del Sur, Lanao delNorte, South Cotabato, SultanKudarat, Saranggani, Zamboanga delNorte and Zamboanga Sibugay)

Completion of the Mindanao Energy Plan(MEP) by third quarter of 2013

CEPALCO’s 1-MW s olar power plant inCagayan de Oro City

Mindanao I and II power plants in Mt.Apo, North Cotabato

Agus and Pulangi hydropower plants(Lanao del Sur, Lanao del Norte, Iligan

City and Bukidnon)

Promote and develop RE potentialso Geothermal 290 MW

Plans and Programs for Mindanao



118

o Geothermal - 290-MWo Hydropower - 1,412.54-MWo Solar - 22-MWo Ocean - 24-MW

Explore opportunities for Liquefied Natural Gas (LNG)o World Bank (WB) study for a floating storage regasification unit (FSRU) in

Macajalar Bay, PHIVIDEC Industrial Authority in Tagoloan, Misamis Orientalo Petroleum National Brunei and PNOC forged an agreement for joint

implementation in Mindanao

Private Sector Initiated Power Projectso Committed additional capacity for Mindanao - 615.5-MWo Indicative additional capacity for Mindanao - 527.0-MW



Transport and Flood Management Infrastructure

Secretary Rogelio L. SingsonDepartment of Public Works and Highways

119

Contents

I. Strategic Policies and Programs



II. 2010-2016 Target Outcomes

III. Public Private Partnership Program

IV. 2012 Performance Report

V. 2013 Budget/ Infrastructure Program

120

Survey of Enterprises on Sincerity in Fighting or PreventingCorruption in the Philippine Public Sectorby Social Weather Stations (SWS)

2005 2006 2007 2008 2009 20122005 2006 2007 2008 2009 2012

Office of the President Department of Public Works and Highways



- 21

- 65 - 63

- 55

- 66 - 66

+ 80

- 37

- 27

- 3

- 15

+ 10

2005 2006 2007 2008 2009 20122005 2006 2007 2008 2009 2012

121

by Social Weather Stations (SWS)

All Areas NCR ANG CLB ILO CEB DAV CDO-I

Department of Public Works and Highways

Survey of Enterprises on Sincerity in Fighting or PreventingCorruption in the Philippine Public Sector



- 65

- 71 - 71 - 70

- 56

- 52

- 21

- 8

- 30

- 20

- 32 - 36

- 24

- 30

122

The Global Competitiveness Report

by World Economic Forum

Ranking of the Philippines significantly improved from no 114 (2010 2011) to no 87 (2012 2013)

Quality of Roads

2010-2013



Ranking of the Philippines significantly improved from no. 114 (2010-2011) to no. 87 (2012-2013)

Legend: 1 = extremely underdeveloped; 7 = extensive and efficient by international standards (Based on 144 Countries)

123

Condition of Philippine Road Network

Based on 2012 Road Condition Data

Legend

Road Classification

National ArterialPlan, Design, Construct and Maintain National Roads and Bridges

d Fl d C t l S t i M j d P i i l Ri

Department of Public Works and HighwaysBasic Mandate



National Arterial

National Secondaryand Flood Control Systems in Major and Principal Rivers

215,088 kms Total Overall Road Network

31,598 kms Total National Road Length

0.72 km/sq. km Road Density

0.26 km/sq. km Paved Road Density

0.27 Overall Paved Road Ratio

0.80 Paved Road Ratio for Nat’l. Roads

124

DPWH Strategic Policies and Programs

Strategic Programs Key Reforms

Good Governance Reform and Anti-

Reforms in public works processes promoting right project, right cost, right quality,and right-on-time implementationC i i d biddi h l d i P 2 Billi i



Corruption Program Competitive and transparent bidding have resulted in P12 Billion savings . Promotional examination for Asst District Engineers & up

Better Quality and Safer National Roads

and Bridges Programs

Adopted new standards for concrete pavement thickness Outsourced project inspection and quality assurance Developed new construction design standards and specifications

Effective Flood Control Program

River Basin Approach to Flood Management and Water Resource Utilization Integrated Water Resource Management Approach in Coordination with DA, NIA,

DENR Implement the Flood Management Master Plan for Metro Manila and surrounding

Areas

Strategic Convergence Program

Support to designated Tourism Destinations based on the Tourism Master Plan Support for access to major airports, seaports and RORO ports. Prioritized CCT Beneficiaries for Labor Employment on DPWH Projects

Public Private

Partnership Program

Implement the High Standard Highway Master Plan for Metro Manila and 200kmradius which identified priority expressways and high standard highways

Develop long term road maintenance program for national roads and bridges Implement PPP Bridge Program Assist DepEd in developing PPP School Building Program

125

Key Results and Outcomes

Contract Package 1 Contract Package 2

Date of Bidding 2008 July 2010

Plaridel By-Pass Project, Phase I (JICA PH-P236)



g y

ABC P1.447 Billion P 706.5 Million

Total Amount as Bid P 1.571 Billion (+)8.5% ofABC

P 543.3 Million (-)23.1% of ABC, Savings: P163.2 M il lion

Unit Cost P85.8 Million/Km P46.4 Million/Km

Length of Road 7.93 Kms 7.53 kms.

Original Implementation Schedule: January 2009-May 2011 May 2011-February 2013

Actual Implem entation Schedule: January 2009-Nov. 2011 May 2011-Nov. 2012 (3 months ahead of schedule)

C-3 Road, G. Araneta Avenue/Quezon Avenue Interchange Project, Quezon City

Contractual Data

Date of Bidding November 2010

ABC P 534.6 Million

Total Amount as Bid P 430.0 Million (-)19.6% of ABCSavings: P 104.6 M illion (against ABC), P264 Million (against the Allocation)

Scope of Work/Length: Depressed roadw ay (underpass) - of 440 lineal meters (lm), 330 lm - approaches

Original Implementation Schedule: June 2011-December 2012

Actual Implem entation Schedule: June 2011-September 2012 (3 months ahead of schedule)

126

DPWH 2010-2016 Target OutcomesRoad Upgrading/Gravel to Paved, Km.

National Arterial and Secondary Road (31,242 Km.)Nationwide



NATIONAL ROAD 100% PAVED BY 2016

NATIONAL ROAD 100% PAVED BY 2016

* Excludes the on-going upgrading road projects.

127

DOT-DPWH Tourism Infrastructure Program

2011-2013 Tourism Infrastructure Program

Regional Breakdown (in Billion Pesos)

2011-2016 Tourism Infrastructure Program

(in Billion Pesos)



* Includes the P5 Billion addit ional released for 2012

*

128

Proposed High Standard Highway (HSH) Networkin Metro Manila and its 200km Sphere

Project Name Length (km) Proj. Cost

Tarlac-Pangasinan-La Union Expre ssw ay 88.15 P 12.73 B

ON-GOING CONSTRUCTION : 92.15 KMKM



Daang Hari-SLEx Link 4.00 P 2.01 B

Project Name Length (km) Proj. Cost

NAIA Expressway 7.15 P 15.52 B

NLEx-SLEx Connector Road (MPTDC) 13.53 P 25.56 B

CALA Expressway (Cavite and LagunaSide)

47.00 P 35.58 B

Central Luzon Link Expressway (CLLEx),Phase I

30.70 P 14.94 B

Southern Tagalog Arterial Road (STAR),Lipa City – Batangas City, Phase II

19.74 P 1.96 B

C-6 Expressway and Global Link (SouthSection)

59.50 P 44.59 B

C-6 Extension (Flood Control DikeExpressway)

42.60 P 42.38 B

Calamba-Los Baňos Expressway 15.50 P 10.38 B

PROPOSED (PRIORITY): 235.72 KM

129

Proposed HSH Network in Metro Cebu

Highly Urbanized Area:

Extension of Cebu Coastal Road up to Liloan

Construction of Cebu Hillside Road and its ConnectorRoads



Roads

Flyover construction along Cebu North Road, CebuSouth Roads and Coastal Road

Mactan Island:

Improvement of Mactan Circumferential Road

Widening of First Mandaue-Mactan Bridge and its

ApproachRoads

Construction of 3rd Bridge and its Approach Road

Northern Area:

Widening of Cebu North Road

Construction of Cebu North Parallel Road

Southern Area:

Widening of Cebu South Road from Naga to Carcar

Construction of Cebu South Parallel Road

130

Proposed HSH Network in Tagum-Davao-Gen. Santos Corridor

Inter-City Transport Axes

Davao-Tagum Transport Axis together withDavao-Tagum Parallel Transport Axis is formed



Davao-Digos-General Santos Transport Axistogether with Davao-General Santos ParallelTransport Axis

Davao-Cagayan De Oro Transport Axis

Inter-City Transport Axes

Davao City Diversion Road

Second Diversion Road to be formed

Mac Arthur Highway-E. Quirino Avenue

Quimpo Blvd.-Quezon Blvd.-Leon Garcia Avenue-R. Castillo Avenue

C.M. Recto Avenue-J.P. Laurel Avenue

Ma-a Road

D. Quinones Road-Dacudao Avenue

General Santos City Circumferential Road

131

Based on river basins:Pasig-Marikina River

Basin and Laguna LakeBasin.

69 km2169 km2

19 km2

Master Plan for Flood Management in Metro Manila and Surrounding Areas



Boundary ofStudy Area andthe River Basins

Total area: 4,354 km2

Total Population: 17.1

M635 km2

72 km2

3280 km2

95 km2

15 km2

132

(1) Huge volume of watercoming from SierraMadre

(2) Drainage capacityconstraints in core area

Three M ajor FloodingOccurrence:



constraints in core areaof Metro Manila

(3) Low lying communities

around Manila Bay &Laguna Lake

133

Options for the Lakeshore Area from Taguig to Muntinlupa



Option-1: Image of Lakeshore Dike

with Road

Option-2: Image of Raising Lakeshore Land

with Road and Future Developments

134

DPWH Performance ReportAs of December 31, 2012

FY 2011 vs. FY 2012 Fund Utilization

(in Billion Pesos)



135

DPWH Capital Outlays (Projects)Based on GAA

FY 2012 vs. FY 2013 Budgets

(in Billion Pesos)

2005 - 2013

(in Billion Pesos)



+45%

Note: DPWH 2009 & 2010 Budget included P23 B & P26 B“Pork Barrel”, respectively.

136

FS/PDE – 1%, P1.68 B

DPWH FY 2013 Capital Outlays (Projects)Based on GAA (In Billion Pesos)

Flood Control – 11%, P15.85 B P 144.34 B

By Expenditure Type



ROW, Contractual Obl igations – 3%, P3.80 B

PPP – 2%, P3.00 B

Regional Allocation

Highways – 70%,P100.93 B *

Water Supply/VIILP/Disaster Related/Others- 2%, P2.18 B

Basic Education Faci lities – 10%, P14.11 B

Health Facilities – 2 %, P2.79 B

* The P100.9 Billion allocated for Highways includes the P11.95

Billion for Tourism Infrastructure

Projects

137



Transport Infrastructure:Airports, Seaports and Mass Transport Systems

Sec. Joseph Emilio Aguinaldo Abaya

Department of Transportation and Communication

138

Contents

I. Actual Performance vs. Target (2012)

II. Performance in Other Key Areas



III. Performance vs. Philippine Development Plan Targets


V. Policy Thrusts and Other Plans/Projects for 2013

VI. Mindanao: Plans, Policy and Thrusts

139

I. Actual Performance vs. Target (2012)

Major Final Output ResultPolicy/Plan Formulation

Transport policies/plans formulated and implemented to ensure safe,reliable, responsive and viable transport services

45 actual v. 41 planned



Regulatory and Enforcement

Percentage of transport conveyances regis tered within the prescribed

standard processing time

• Land Transportation Office

• Maritime Industry Authority

Compliance with safety and security standards

(Philippine Coast Guard and Toll Regulatory Board)

87% (actual) v. 85% (target)



Operations and Management (MRT-3)

Reduce passenger unloading incidents due to train failure

Number of round trips for the year not to go below 80,000

Percentage increase in fareboxrevenues

292 (actual) v. 366 (target) incidents

81,052 roundtrips

12.24% (actual) v. 2.5% (target)

Infrastructure Development

• Percentage of projects awarded within scheduled time• Percentage of savings derived from Approved Budget for Contract (ABC)

over program amount

86% (actual) vs. 80.6% target6.46% (actual) v. 5% target

140

II. Performance in Other Key Areas

New Measures Implemented

Air Passenger Bill ofRights (DOTC/DTI JointAdministrative Order

Protects the rights of passengers by outlining theresponsibilities of airlines to passengers:



Administrative OrderNo. 1, s. 2012)

• Right to be provided with accurate information beforepurchase

• Right to receive full value of the service purchased

• Right to compensation in cases of flight delay orcancellation, lost, delayed or damaged baggage

Helmet Law (R.A. No.10054, s. 2011)

Mandates the use of protective helmets for motorcycleriders for their safety. Starting January 1, 2013, motorcycledrivers without helmets bearing the ICC seal will beapprehended and penalized.

141

III. 2012 Performance vs. Philippine Devt. Plan Targets

PDP Target Supporting Projects1. Establish an integrated and coordinated transport

network for passengers and cargo

Project Planning for the Integrated Transport System

(Intermodal Bus Terminal Facility)

Scoping activities for the Integrated Luzon Railways Interconnect mass transport systems



(Luzon-wide Railway Project)

Published for bidding the interoperable Automatic

Fare Collection System for transport systems

Interconnect mass transport systems

Keep mass transport convenient

2. Bolster tourism targets through the construction and

reinforcement of transport infrastructure

Puerto Princesa Airport concept design ongoing

Laguindingan Airport in final stages of construction

Airport Improvement projects published for bidding

(Butuan Airport, Cotabato Airport, Dipolog Airport,Pagadian Airport, Tacloban Airport)

PPP Projects published for bidding (LRT1 Extension,

Mactan-Cebu Airport, interoperable Contactless

Automatic Fare Collection System for LRT and MRT)

Develop airports

Promote PPPs

142


CY 2013 Infrastructure Proposal

Locally-Funded

Projects

Airports and Navigational Facilities

Bicol International Airport Development Project

P t



Ports

LRT Line 2 East Extension (to Masinag)

DOTC Road Transport IT Infrastructure Project

MRT 3 Operation and Maintenance (EDSA LRT III)

Subsidy for Mass Transport (MRT 3)

Transport Studies Fund

DOTC - Executive Management Information Systems

Project Development Funds for Public-Private Partnership Transport Infrastructure

Projects

• MactanCebu Airport Expansion

• Northern Integrated Bus Terminal System

• Southern Integrated Bus Terminal System (2 terminals)

• RORO Project

•Davao Sasa Port Project

143


CY 2013 Infrastructure Proposal

Foreign AssistedProjects

Puerto Princesa Airport Development Project

New Bohol (Panglao) Airport Development Project



j Bus Rapid Transit (BRT) System for Cebu City

Maritime Disaster Response Helicopter Acquisition Project Multi-Role Response Vessel Acquisition Project

LRT Line 1 Cavite Extension

144

V. 2013 Policy Thrusts and Other Plans/Projects

2013 Policy Thrusts and Other Plans/Projects Supporting Projects1. Establish an integrated and coordinated transport

network for passengers and cargo

Additional commuter rail lines (e.g., LRT 1 Cavite

Extension, LRT 2 Masinag Extension, MRT 7)

Integrated Transport System (ITS) North and South

terminals Make mass transport available from origin to

destination



terminals

Bus Rapid Transit (BRT) lines (e.g., Cebu, Ortigas,

Makati)

Pasig Ferry System

Improvement of PNR commuter service

destination

Interconnect mass transport systems

Keep mass transport convenient and cheap

Coordinate transport planning with land use and

urban planning

Push for approval of the National Transport Policy

2. Bolster tourism targets through the constructionand reinforcement of transport infrastructure

Night-rating of 8 airports (Tuguegarao, Busuanga, Roxas,Dumaguete, Dipolog, Ozamiz, Cotabato, and Butuan)

Airports than can accommodate more passengers

(including international) and larger aircraft (e.g.,

Laguindingan, Mactan Cebu, New Bohol)

Privatization of operations and maintenance of airports

(e.g., Mactan-Cebu, New Bohol)

Develop airports

Open secondary airports to international traffic

Improve access to airports

Promote PPPs

145

VI. Mindanao: Plans, Policy and Thrusts

Mindanao: Plans, Policy and Thrusts Action Plan

1. Improve transportation within and from

Mindanao to support growth of tourism,



agriculture and fishery sectors

Improve port connections with other islands

Provide infrastructure and logistics support

Support domestic market access and

connectivity

Airport build out and modernization

Complete studies for the improvement of cargomovement and logistics (e.g., Davao Sasa Wharf)

Revise regulatory and administrative requirementsto lower logistics costs

146



Public-Private Partnership Program

Executive Director Cosette V. Canilao

Public-Private Partnership Center

147

Contents

I. Actual Performance vs. Target

II. Performance/ Accomplishments in Other Key Result Areas



III. Outlook for 2013

IV. Policy Thrusts and Other Plans/ Projects for 2013

V. Projects in Mindanao

148

PPP Targets vs. Actual Performance

Eight Projects Targeted and Successfully Rolled-out in 2012

PROJECT EST. COST(USD) PPP STRUCTURE STATUS

PPP for School Infrastructure

Project Phase I389M

Build-Lease-Transfer(BLT)

Awarded to Private Sector Partners; Indicative Start ofCons truction on February 2013

NAIA Expressway Phase II 368 84MBuild-Transfer- Bid submission on 26-Feb 2013; Indicative Start of



NAIA Expressway Phase II 368.84MOperate (BTO) Construction on December 2013

LRT Line 1 Cavite Extension

and O&M1.38B

Contract-Add-Operate(CAO)

Bid submission on 27-May 2013;Indicative Start of Construction by mid 2014

Modernization of Philippine

Orthopedic Center132.56M

Build-Operate-Transfer (BOT)

Bid submission on 26-March 2013; Indicative Start ofConstruction on November 2013

Rehabilitation, O&M of Angat

Hydro-Electric PowerplantAuxilliary Turbines 4 & 5

26.86MRehabilitate-Operate-Transfer (ROT)

Submission of Prequalification (PQ) documents set on

4-March 2013; Indicative Start of Construction onDecember 2013

Automatic Fare Collection

System41.86M

Build-Own-Operate(BOO)

PQ submission on 14-Feb 2013; Indicative Start ofInstallation on 4thquarter of 2013

PPP for School Infrastructure

Project Phase II312.86M

Build-Lease-Transfer(BLT)

PQ submission on 12-Feb 2013;Indicative Start of Construction on November 2013

Mactan Cebu International

Airport Passenger Terminal

Building

239MBuild-Rehabilitate-Operate-Transfer

PQ submission on 27-Feb 2013; Indicative Start ofConstruction on 2ndquarter 2014

149

Capacity Building Program composed of PPPCore Courses Knowledge Sharing Series and

PPP Performance in Other Key Result Areas

Capacity Development and Enhanced Legal and Regulatory Framework

Amended Implementing Rules andR l ti f th BOT L (R i d

Capacity Building for Implementing Agenciesand Local Government Units

Enhanced Legal and Regulatory Framework



Core Courses, Knowledge Sharing Series andLearning Series – capacitated ImplementingAgencies PPP Project Cycle and Processes

Launched PPP Manual for local governmentunits (LGUs)

From 2011 todate, over 350 national agencies

and local government units trained on basicPPP concepts and project preparation

Regulations of the BOT Law (Revised

BOT Law IRR)

Issuance of Executive Order No. 78, or theAlternative Dispute Resolution

Extension of the BSP Circular No. 700 onSingle Borrower's Limit

Policy Guidelines on ProjectIdentification, Selection, and Prioritization

150

Outlook for 2013

Seven projects on-going bidding and more projects in the pipeline to be awarded this year(e.g. NAIA Expressway Phase II, LRT Line 1 South Extension, Modernization of the

PPP Outlook for 2013



(e.g. NAIA Expressway Phase II, LRT Line 1 South Extension, Modernization of the

Philippine Orthopedic Center, Rehabilitation, O&M of Angat Hydro-Electric PowerplantAuxilliary Turbines 4 & 5, Automated Fare Collection System, PPP for School Infrastructure

Project Phase II, Mactan-Cebu Intl. Airport New Passenger Terminal Building)

Sustaining the PPP momentum—systematic and coordinated pipeline development

Maintaining PPP Center ’s balanced approach in project facilitation, and policy/regulatoryframework monitoring and improvement

Launching of the Knowledge Management (KM) Portal

Ensuring PPP Center ’s staff sustainability

Efficient management of contingent liabilities with a growing PPP portfolio

Adequate monitoring and management of projects during development and delivery

151

Policy Thrusts and Other Projects for 2013

Policy Enhancements, Improving Capacities and PPP Projects for 2013

Amendments to the BOT Law (PPPLaw)

PPP Manual for national implementingagencies including government owned

Policy Enhancements Improving Capacities



Law)

Amendments to Executive Order No. 8o Creation of the PPP Governing Boardo PDMF to ensure effective monitoring

of PPP project implementation

Policy Guidelines on Monitoring and

Evaluation of PPP Projects, andContract Management

Sector Guidelines for DepEd, DOH, andDOTC PPP Projects

Policy Briefs on Value for Money, andOptimizing PPP Center Interface withDepartments’ PPP Units

agencies, including government-owned

and controlled corporations

Strengthen PPP enabling frameworks

Institutionalize PPP best practices

Establish long-term financing and risk

guarantee mechanisms

152

NLEX-SLEX Connector Road

Cavite-Laguna Expressway

Civil Registration System – Information Technology

Project Phase II

Vaccine Self-Sufficiency Project Phase II

Policy Thrusts and Other Projects for 2013

Policy Enhancements, Improving Capacities and PPP Projects for 2013

Plaridel Bypass Toll Road

Makati- Manila CCP Complex- Manila Bay City Area Mass

Transit System

Batangas-Manila (BatMan) 1 Natural Gas Pipeline Project

PhilHealth Information Technology Project

PPP Projects in the Pipeline Projects under development



y j

Talisay City Plaza Complex Heri tage Restoration and

Redevelopment Project Enhanced O&M Panglao Airport

O&M of Laguindingan Airport

Establishment of Cold Chain Systems

Grains Central Project

O&M of LRT Line 2

O&M of Puerto Princesa Airport

New Centennial Water Supply

Rehabil itation of Quirino Highway Project

Integrated Transport System Project

Bulacan Bulk Water Supply Project

El Nido Water Supply and Sanitation System Project

Regional Prison Facili ties through PPP

Skyway Stage 3

MRT Line 7

gy j

Tamugan Water Development Project

Bus Rapid Transit (BRT) – Ortigas Avenue Extension Bus Rapid Transit – Quezon Avenue –Espana

C-6 Extension (Laguna de Bay Flood Control Dike

Expressway

Calamba – Los Banos Toll Expressway Project

Metro Cebu Expressway Project

Tagum-Davao-General Santos High Standard Highway

Central Luzon Link Expressway (CLLEX), Phase 2: Cabanatuan-San Jose Section

Global City Mass Transit (Monorail System) Project

Improvement/Modernization of Kennon Road

Modernization of Region 1 Medical Center Project

Socialized Housing Project

Bayabas Small Reservoir Irrigation Project

Operation and Maintenance of Clark Airport

Manila Bay-Pasig River-Laguna Lake Ferry System

C-6 Expressway (South-East, East, and North Sections)

Manila Urban Renewal Project

Other Projects Being Monitored by PPP Center

153

Awarded Projects | Live Bidding

(1) Daang Hari-SLEX Link Road Project (awarded)

22

33

55

77

66



( ) g j ( )

(2) PPP For School Infrastructure Project – Phase I

(3) LRT Line 1 South Extension(4) NAIA Expressway Phase II

(5) Modernization of the Philippine Orthopedic Center

(6) Rehabilitation, O&M of Angat Hydro-ElectricPowerplantAuxilliaryTurbines 4 & 5

(7) Automated Fare Collection System

(8) Mactan-Cebu Intl. Airport New Passenger Terminal

Building(9) PPP for School Infrastructure Project Phase II

11

44

88

99

154

PPP Projects in the Pipeline

1. NLEX-SLEX Connector Road

2. Cavite-Laguna Expressway

3 Civil Registration System – Information

22

44

33

88

1212

1414



3. Civil Registration System Information

Technology Project Phase II 4. Vaccine Self-Sufficiency Project Phase II

5. Talisay City Plaza Complex Heritage

Restoration and Redevelopment Project

6. Enhanced O&M PanglaoAirport

7. O&M of Laguindingan Airport

8. Establishment of Cold Chain Systems

9. Grains Central Project 10.O&M of LRT Line 2

11.O&M of Puerto Princesa Airport

12.New Centennial Water Supply

13.Rehab ilitation of Quirino Highway Project

14.Integrated Transport System Project

15.Bulacan Bulk Water Supply Project

16.El Nido Water Supply and Sanitation System Project

17.Regional Prison Facilities through PPP

11

55

66

7799

1010

1111

1313

1515

1616

1717

66

155

Projects covering areas in Mindanao

The PSIP Phase II involves the des igning, financing, andconstructing of around 10,679 one-s torey and two-storeyclassrooms, including furniture, fixtures and toilets, in 5,033

public schools in 14 regions nationwide.

PPP for School Infrastructure Project (PSIP Phase II)



Operation and maintenance of the newly constructedinternational-standard airport in Laguindingan, MisamisOriental.

The project will establish grains bulk handling systems withcorn grains processing centers and transshipment stations inmajor corn producing areas and s elected sea ports by

upgrading, expanding and enhancing the existing operations inat leas t fifteen (15) corn postharvest processing and trading

centers.

Operation and Maintenance of the Laguindingan Airport

Grains Central Project

156



157

Profiles of Speakers and Panel Discussants

Government of the Philippines

Amando M. Tetangco, Jr.BSP Governor and Chairman of the Monetary Board

BangkoSentral ng Pilipinas

Mr. Amando M. Tetangco, Jr. is the Governor of the Bangko Sentral ng Pilipinas (BSP). He was reappointed for a second term

commencing 4 July 2011 As BSP Governor he serves as Chairman of the Monetary Board the BSP’s principal monetary



commencing 4 July 2011. As BSP Governor, he serves as Chairman of the Monetary Board, the BSPs principal monetary

policy-makingbody. He is alsothe Chairman of the Anti-MoneyLaundering Council (AMLC).

A career central banker, Governor Tetangco has been in the service of the BSP for more than three decades. Prior to his firstappointment as Governor in July 2005, he was DeputyGovernor in-charge of the Banking Services Sector, Economic Research

and Treasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington,D.C.from 1992 to 1994.

Governor Tetangco is involved in various organizations in the Philippines and overseas. Domestically, he is, among otherpositions held, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture CreditPolicy Council, member of the Capital Markets Development Council (CMDC) and the Export Development Council (EDC).

Overseas, he represents the country in ASEAN Central Bank Forum, Executive Meeting of East Asia and Pacific (EMEAP)Central Banks, South East Asia Central Banks (SEACEN), South East Asia, New Zealand and Australia (SEANZA), and Center

for Latin American Monetary Studies (CEMLA). In addition, he is the Governor for the Philippines in the International MonetaryFund (IMF)and the Alternate Governor in the World Bank(WB)and in the Asian Development Bank(ADB).

Governor Tetangco studied economics and business administration at the Ateneo de Manila University. He finished his MA inPublic Policy and Administration with a concentration in Development Economics at the University of Wisconsin-Madison in the

United States. He has attendedvarious training programsat different institutions including the HarvardBusiness School.

158

Cesar V. PurisimaSecretary

DepartmentofFinance

Mr. Cesar V. Purisima was appointed Finance Secretary by President Benigno S. Aquino III in June 2010. He also briefly served as FinanceSecretary in 2005 and as Trade and Industry Secretary in 2004. In October 2012, Secretary Purisima was named Finance Minister of the Yearb E M i f hi “ f l d f l t d hi ” f th l l




by Euromoney Magazine for his “carefulandsuccessfulstewardship” of the localeconomy.

In 2011, hew as also recognized by Emerging Markets Magazine as the Finance Minister of the Year for Asia for his strong policy track recordand steadfast commitment to maintaining economic stability. In addition, hew as Chairman of the Board of Governors for the 45th ADB AnnualMeetingheld in Manila last May 2012.

His government service experience include serving as Chair of the Board of various government entities among them, the Land Bank of thePhilippines, National Power Corporation, and Philippine Deposit Insurance Corporation; and as Member of the Monetary Board of BangkoSentral ng Pilipinas.

Secretary Purisima has had extensive work experience in public accounting both here and abroad. He was Area Managing Partner as head ofthe Asia Pacific Assurance Practice of Andersen Worldw ide from 2001-2002, and was Regional Managing Partner as head of the ASEANoperation from 2000-2001. He was member of the Global Board of Andersen Worldw ide from 1999-2002 and the Global Executive Board ofErnst & Young from2002-2004.

He w as also Chairman and Managing Partner of SGV & Co until January 2004. Likew ise, he has been a member of various businessorganizations including the Management Association of the Philippines, Philippine Institute of Certified Public Accountants, Philippine-FranceBusiness Council,Philippine-Thailand Business Counciland theMakati Business Club, among others.

Secretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial Institutions from De LaSalle University (1979) and his MBA from JL Kellogg Graduate School of Management, Northwestern University in Chicago, Illinois (1983). In1979,hew as among thetop placers inthe Philippine BoardExaminations for CertifiedPublic Accountants.

159

Arsenio M. Balisacan

SecretaryNational Economic and Development Authority

Dr. Arsenio M. Balisacan is Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority (NEDA). Prior tohis appointment in NEDA, he was Dean and Professor of the University of the Phil ippines (UP) School of Economics and Executive Director of thePhilippine Center for Economic Development. He has taught Development Economics, Agricultural and Resource Economics, and Economics of Povertyand Inequality.




q y

An Academician of the National Academy of Science and Technology and Adjunct Professor of the Australian National University, Secretary Balisacan isnow on secondment from UP. He also served as Director-Chief Executive of the Southeast Asian Regional Centre for Graduate Study and Research inAgriculture (SEARCA), an intergovernmental organization, for six years (2003-2009) wherein he led SEARCA gain stature in the academic world andbecome a regional center of excellence for agriculture and rural development in Southeast Asia.

In 2000-2001 and 2003, he was Undersecretary for Policy, Planning and Research of the Department of Agriculture (DA). As Undersecretary of DA, he wasthe country’s chief negotiatori n the Agriculture Negotiations of the World Trade Organization (WTO) and in various bilateral agriculture negotiations. Before joining the UP faculty in 1987,he wasa Research Fel low at the East West Center in Honolulu and Economist at the World Bank in Washington, D.C.

A recognized expert in Asia on poverty, food security, agricultural and rural development, human development, impact asse ssment, and governanceissues, he served as adviser to public chief executives and legislators, non-government organizations, and multilateral development institutions such as theWorld bank (WB), Asian Development Bank (ADB), variousUnited Nations (UN) agenciesand the Australian Centre for International Agricultural Research(ACIAR).

He has led leadership positions in professional associations. He served as President of the Philippine Economic Society in 2006, President of the HumanDevelopment Network in 2003-2009, Founding Secretary-General of the Asia-Pacific Agricultural Policy Forum in 2003-2006, and Executive Secretary ofthe Southeast Asian University Consortium for Graduate Education in Agriculture and Natural Resources in 2003-2009. Currently, he is President of the

Asian Society of Agricultural Economists.

Dr. Balisacan holds a PhD in Economics from the University of Hawaii, an MS degree in Agricultural Economics from the University of the Philippines LosBañosand a BS degree in Agriculture (magna cumlaude) from Mariano MarcosState University.

160

Florencio B. Abad

Secretary

Department ofBudgetand Management

Mr. Florencio B. Abad was appointed by President Benigno Aquino III as Secretary of Budget and Management in JulyH l d S f A i R f d i h l P id C A i ’ d i i i d




2010. He also served as Secretary of Agrarian Reform during the late President Corazon Aquino’s administration and

served as Secretary of Education under the Arroyo administration.

He was elected member of the House of Representatives in 1987 representing the Lone District of Batanes. He was

subsequently re-elected in 1995, 1998 and 2001. He became president of the Liberal Party of the Philippines from 1999to 2004 and is currently the Vice Presidentfor Policy and Platforms.

Secretary Abad finished his Bachelor of Science in Business Management, and Bachelor of Laws at the Ateneo deManila University and passed the Bar Examination in 1985. A fellow of the Edward Mason Program in Public Policy and

Management at the KennedySchool of Government in Harvard University in Cambridge, Massachusetts, he also holds aMasters in PublicAdministration degree.

Previously, Secretary Abad was a union organizer/trainer, research director of the Ateneo Center for Social Policy andPublicAffairs, and a legal and management consultantto different local and foreign foundations.

161

Gregory L. Domingo

Secretary

Department ofTrade and Industry

Mr Gregory L Domingo was appointed as Trade and Industry Secretary by President Benigno Aquino III in July 2010




Mr. Gregory L. Domingo was appointed as Trade and Industry Secretary by President Benigno Aquino III in July 2010.

He previously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and InvestmentsGroup (IIG) and Managing Head of the Board of Investments (BOI) from May 2001 to April 2004.

Prior to his stints with the government, he was President of Carmelray-JTCI Corp. (CJC) from July 1997 to November

2000. He worked for Chase-Manhattan Bank in various capacities from July 1989 – July 1997 and with a number offinancial institutions in the United States (First Boston, Drexel Burnham Lambert and Mellon Bank) from 1982 to 1989.

Secretary Domingo also served as Vice Chairman of Belle Corporation and director for SM Investments Corp., BDO

Private Bank, PASUDECO, Manila Electric Corp., Pico de Loro Beach and Country Club, Wharton-Penn Club, andForeign Exchange Association of the Philippines. He was also a member of the Open Market Committee of the Bankers

Association of the Philippines (BAP).

Secretary Domingo obtained his Masters of Science in Operations Research at the Wharton School-University of

Pennsylvania in 1982, finished his MBA with distinction at the Asian Institute of Management in 1980, and graduatedwith a bachelor’s degree in ManagementEngineering at the Ateneo de Manila University in 1976.

162

Rogelio L. SingsonSecretary

Department ofPublicWorks and Highways

Mr. Rogelio L. Singson, in leading the State's engineering and construction arm as its 42nd head, advocatestransformation and innovation in governance through transparency and accountability doing the right project for the




transformation and innovation in governance through transparency and accountability, doing the right project, for the

right price and the right quality, and undertaking more public-private partnership (PPP) projects.

Secretary Singson has extensive experience in both government and private sector in the field of privatization and

public-private partnership, management of tollroads and expressways, water and power utilities privatization, airports,seaports and resorts. He was President and Chief Executive Officer of Maynilad Water Services, Inc. after its re-

privatization from July1, 2007 to June 30, 2010 under new owners, the DMCI-Metro Pacific Consortium. He also servedin various executive positions both in government and private entities to include the position of Chairman and President

ofBases Conversion and Development Authority

His other past involvements in the public sector includes serving as Executive Director of the Coordinating Council ofthe Phil ippine Assistance Program which coordinate and monitor the official development assistance project and

programs from May 1991 to November 1992; and Assistant Cabinet Secretary under the Office of the PresidentCorazon C.Aquino from July 1987 to May 1991.

Secretary Singson obtained his Bachelor of Science Degree in Industrial Engineering from the University of thePhilippines in 1971 and attended a Master's Program in Public & Business Management at the De La Salle University.

He also attended various trainings abroad on PPP,privatization and Build Operate Transfer (BOT) Schemes.

163

JosephEmilio Aguinaldo AbayaSecretaryDepartmentofTransportation and Communications

Mr. Joseph Emilio Aguinaldo Abaya was appointed as Transportation and Communications Secretary by PresidentBenigno S. Aquino III on October 18, 2012, making him the 17th head of the department. Upon his assumption tooffice Secretary Abaya was ordered by the President to continue intensifying the buildup of transportation




office, Secretary Abaya was ordered by the President to continue intensifying the buildup of transportation

infrastructure in the country, in line with DOTC’s objective of providing the people with convenient, affordable, reliable,efficient and safe transport systems on land,sea and air.

Prior to his appointment, Secretary Abaya was a member of the House of Representatives, representing the 1st

District of Cavite for three consecutive terms beginning 2004. He chaired the Committee of Appropriations in the 15th

Congress.

Before joining public service, he was a Lieutenant Commander in the Philippine Navy, having earned this rank overthe course of 20 years on active duty. He started out as a naval officer aboard different vessels and was eventuallyassigned to the presidential yacht, BRP Ang Pangulo . Notably, he served as aide-de-camp of former President

Corazon Aquino,over two decades before her son would appointhim to his own official family.

Secretary Abaya obtained his Electrical Engineering degree from the University of the Philippines-Diliman andreceived citations as a University and College Scholar. After a year in UP, he then entered the Phil ippine MilitaryAcademy (PMA) and later on was sent to the US Naval Academy (USNA) in Annapolis, Maryland, where he earned

his Bachelor's Degree in Mathematics. He also obtained his Master of Arts Degree in Electrical Engineering at CornellUniversity in Ithaca, New York. He received his Juris Doctorate from the Ateneo de Manila University School of Law

in 2005 and was admitted to the Philippine Barin 2007.

164

Carlos Jericho L. PetillaSecretaryDepartmentofEnergy

Pr ior to his appointment as the Secretary of Energy in November 2012, Mr. Carlos Jericho L. Petilla served as Governor of the Provinceof Leyte, Philippines since2004.




As Governor, hefocused on the provision of basic services by instituting various improvements in the province’s health care, education,and development infrastructures. His experience in information technology (IT) benefited Leyte through the improvement in governmentprocesses for better, more transparent and efficient public service. These measures earned aw ards for Leyte, such as, “The Seal ofGood Housekeeping” (October 2011) and the “Gaw ad Pamana ng Lahi Aw ard” (October 2011) from the Department of Interior and

Local Government; “Most Business Friendly LGU Aw ard” (2011, 2010, 2008) from the Philippine Chamber of Commerce and Industry;and the “Hall of Fame - The Hospital Enhancement for Leyte’s Progress (HELP) Project” (2011) and “Hall of Fame - Presidential Aw ardfor Outstanding Leadership in Providing Quality Health Service to his Constituents from 2006-2010” (2010) from the Philippine HospitalAssociation.

Secretary Petilla previously headed the Regional Development Council (RDC) and the Regional Peace and Order Council (RPOC) ofEastern Visayas. These regional councils are responsible for setting economic and social targets and directions as w ell as ensuringpeace, order and public safety in the w hole region.

Outside politics, Secretary Peti lla has been involved in the IT industry for more than tw o decades. He w as President and CEO of

International Data Conversion Solution, Inc., and Accudata, Inc. w hich provides onshore and offshore business processing solutionsabroad. He is also a part-ow ner and consultant of DirectData Capture w ithbusiness offices in the United Kingdom and United States.

Secretary Petilla w as previously an educator for a number of years at the Ateneo de Manila University and consultant for various firms.

165

Proceso J. AlcalaSecretaryDepartment of Agriculture

A civil engineer by profession, Mr. Proceso J. Alcala was appointed as Secretary of the Department of Agriculture (DA) by President BenignoS. Aquino III in June 30, 2010. Prior to his appointment, he served as a representative of the 2nd District of Quezon Province for two three-year terms (2004-2007and 2007-2010).




As a law maker, Mr. Alcala authored the Organic Agricultural Act of 2010 (RA 10068). Mounts Banahaw-San Cristobal Protected LandscapeAct (RA 2718), and co-authored the Climate Change Act (RA 9729) and the Expanded Senior Citizens Act (RA 9994). Among other projects,he led the establishment of the Sentrong Pamilihan ng Produktong Agrikultura sa Quezon – a trading center in Sariaya town that allowedfarmers to sell their produce directly to wholesale buyers. This has resulted in increased incomes for their families. This trading center nowserves as a model throughout thecountry.

At the DA, Secretary Alcala laid the Agrikulturang Pilipino or Agri-Pinoy framework as the guidefor the plans and goals of the Department fora progressive, sustainable and competitive national agriculture and fisheries sector. Through his leadership and hands-on managementstyle,heenjoined all stakeholders toput the farmers and fishers at the center of all programs, and helped restore trust in government.

With this in mind, he has visited all 80 provinces of the country, meeting and feeling the pulse of small farmers, fisherfolk and local officials.This has resulted in field-based methods to deliver improved, effective and direct assistance to farmers, fishers and agriculturalentrepreneurs.

With farmers’ hard work and support from the local government units and the private sector, the Philippines relinquished its status as thebiggest rice importer in the world. Instead, efforts have been intensified so that the country can beself-sufficient in rice by end of 2013 through

theFoodStaples Suff iciency Program.

Secretary Alcala obtained his B.S. Civil Engineering degree from the Luzonian University Foundation in 1978 and is a lifetime member of thePhilippine Instituteof Civil Engineers.

166

Ramon R. Jimenez, Jr.

Secretary

DepartmentofTourism

What trulymakes the Philippines a unique, amazing, and special placeto see?

For the Department of Tourism, it has found the simplest, most direct answer to the fundamental question of every traveler




through its tourism campaign, It’s more fun in the Philippines. The new expression is a powerful, compelling idea that drawsstrength from the fact that it is a fundamental truth about the Philippines—the Philippines is not just a place to see, it is a place tobe.

The man behind this tagline that became a top trending topic on social media sites is a writer, mentor, former instructor,marketing communications expert, and one of the pillars of Philippine advertising – the Honorable Ramon R. Jimenez, Jr.,Secretaryof the Department of Tourism.

Today with over 75,000 memes of the tagline contributed by people from all walks of life, the campaign has certainly built a newsense of excitementaround the tourismbrand and elicited renewed enthusiasmfor the country’s tourism industry.

In keeping with his promise to make tourism the “people’s business,” SecretaryJimenez aims to transform the department into aprimary selling unit with the ultimate goal of not only improving statistics, but also ensuring that everyendeavor would be fulfillingand profitable for Filipinos. Under his leadership, the DOT has joined convergence projects with government agencies and theprivate sector,and activelyespoused policyreforms.

Secretary Jimenez hopes to build enough energy around tourism to give the Philippines the global attention it deserves.Brimming with confidence, he looks forward to meeting the target of 10 million foreign tourist arrivals by 2016, and seeing tourismfinallytake its place as a keydriver ofsocio-economic progress in the country, to make it “more fun” for all.

167

Kim S. Jacinto-HenaresCommissionerBureau of Internal Revenue (BIR)

Ms. Kim S. Jacinto-Henares was appointed as Commissioner of the Bureau of Internal Revenue on July 2010. Prior to herappointment, Commissioner Henares was Senior Private Sector Development Specialist at the Worldbank Group where sheco-convened for and in behalf of the International Finance Corporation (IFC), the Growth and Investment Climate Working




Group of the Philippine Development Forum to establish the national strategy for increasing growth and improving theinvestment climate in the Phil ippines. She was also in charge of the Worldbank’s National Program Supporting TaxAdministration Reform (NPSTAR) – a US$11 Million loan to the Bureau of Internal Revenue to implement reforms in taxadministration.

Commissioner Henares was the Deputy Commissioner for the Special Concerns Group of the BIR from August 2003 – November 2005 and was a consultant to the Commissioner from January 2003 – August 5, 2003. As consultant at theInternational Development and Legal Consultant, she served as trade expert to the EU funded ASEAN Single WindowProject, a pilot implementation of ASEAN Single Window between the Philippine Bureau of Customs and the Royal ThailandCustoms; International Law Expert for the development of a Philippine National Strategy of Accession to the Revised KyotoConvention; among others.

She has also previouslyheld various positions in government such as Director of the National Power Corporation and PowerSector Assets & Liabilities Management Corp., Chairman of Cagayan Economic Zone Authority, Governor of Board ofInvestments and Representative of the InvestmentCoordinatingCommittee.

Commissioner Henares obtained her Master of Laws major in International and Comparative Law from GeorgetownUniversity in Washington D.C., U.S.A. She earned her Bachelor of Laws degree from Ateneo de Manila University andBachelor ofSciencein Commerce major in Accountingfrom DeLa Salle University.

168

Rozzano Rufino B. BiazonCommissionerBureau ofCustoms

Mr. Ruffy Biazon was appointed by President Benigno S. Aquino III as the Commissioner of Customs on September 16,2011. He is a former member of the Philippine House of Representatives, serving in the 12th, 13th and 14th Congress from




2001 to 2010. He represented the Lone Congressional Districtof Muntinlupa City.

In Congress, he served as Chairman of the Committee on Metro Manila Development, Vice Chairman of the Committee

on National Defense and Security, Vice Chairman of the Committee on Information and Communications Technology, ViceChairman of the Committee on Appropriations and member of the Congressional Oversight Committee on Visiting ForcesAgreement.

His three terms as legislator was marked byvery significant achievements. He was principal author of 8 Republic Acts andco-author of 36 others. In his last term in Congress, he filed a total of 81 bills and resolutions, most of which are national inscope.

For his exemplary performance as House Representative, Commissioner Biazon was cited by the Philippine Daily Inquireras “one of the most prolific legislators”. The Philippine Graphic Magazine also included him as one of the Top 100 Young

Leaders of the country and the Philippines Free Press Magazine as an Outstanding Congressman.

169

Teresita J. Herbosa

Chairperson

Securities and Exchange Commission

Ms. Teresita J. Herbosa was appointed as the Chairperson of the Securities and Exchange Commission in May 2011.

Since her appointment, SEC’s operations have gone through complete computerization. She has embarked on anextensive capacity building of SEC personnel through training, recruitment and adoption of a performance-based




evaluation system. Chairperson Herbosa having specialized in litigation for more than 30 years, has directed the SEC

departments concerned to step up investigations and enforcement actions through the imposition of administrativesanctions and filing ofcriminal cases against persons who commits ecurities law violations.

Apart from her job at the SEC, by law, Chairperson Herbosa is a member of the Anti-Money Laundering Council(AMLC), heads the Business and Economic Sector of the Office for Competition under the DOJ, and is Chairperson of

the CreditInformation Corporation which is the central creditbureau of the country.

Prior to the SEC, she was a senior partner and the first female co-managing partner of the Angara Abello ConcepcionRegala & Cruz Law Office (ACCRALaw). She has also received numerous citations for her legal excellence from theInternational Financial Law Review in its publication “Guide to the World’s Leading International Business Law Firms

2001 Edition ”, the Asia Pacific Legal 500 (The Guide to Asia’s Commercial Law Firms), and the International Who’s Who ofRegulatoryCommunicationsLawyers,and other publications.

Chairperson Herbosa obtained her Master of Comparative Law degree from the University of Michigan Law School inAnn Arbor, Michigan. She graduated with the degrees of Bachelor of Arts cum laude and Bachelor of Laws cum laude

from the Universityof the Philippines.

170

Cosette V. CanilaoExecutive DirectorPublic-Private Partnership (PPP) Center

Ms. Cosette V. Canilao is the Executive Director of the Public-Private Partnership (PPP) Center. Prior to joining thePPP Center, she was a Director of Standard Bank where she established and headed its distressed debt servicingb i i h Phili i M C il l h P id d CEO f h b k’ i SPV i Sh




business in the Philippines. Ms. Canilao was also the President and CEO of the bank’s various SPV companies. She

is also a former partner of PricewaterhouseCoopers where she headed the Crisis Management Practice and FinancialServices (FS) Industryconsulting.She started hercareer in program lending and corporate banking.

Ms. Canilao holds a Master of Science in Finance degree from the University of the Philippines. She has attendednumerous trainings in the course ofhercareer including an executive program atHarvard Business School.

171

Guillermo M. LuzPrivate Sector Co-Chairman

National Competitiveness Council

Mr. Guillermo M. Luz is the Private Sector Co-Chairman of the National Competitiveness Council, a public-private sectorbody dedicated to developing a strategy for the long-term competitiveness of the Philippines through policy reforms,

j t i l t ti i tit ti b ildi d f it i

Private Sector



project implementation, institution-building, and performance monitoring.

He was Executive Vice President and Chief Operating Officer of Ayala Foundation from December 2006 to May 2011, a

foundation which manages projects in education, environment, entrepreneurship, arts and culture, and communitydevelopment. He concurrentlyserved as Director ofAyala Museum from January2010 to May 2011

He was Executive Director of the Makati Business Club from 1987 to 2006, after joining its staff in 1983. While at MBC, he

concurrently served as Executive Director of the Philippines-United States Business Council, Philippine-British BusinessCouncil, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-MalaysiaBusiness Council.

Mr. Luz was the Secretary-General of NAMFREL from 1992 to 2006, overseeing preparations for its Operation QuickCountand pollwatching in the 1992, 1995, 1998, 2001,and 2004 elections.

172

Erramon I. AboitizPresident and ChiefExecutive OfficerAboitizEquity Ventures

Mr. Erramon I. Aboitiz is the President and CEO of AboitizEquity Ventures, AboitizPower Corporation, and Aboitiz

&CompanyInc

Private Sector



&CompanyInc.

He also occupies various positions in other companies. He is the Chairman of Aboitiz Renewables, Inc., ThermaPower, Inc., SN AboitizPower, Davao Light & Power Co., Cotabato Light & Power Co., Subic EnerZone Corp., City

Savings Bank, San Fernando Electric Light and Power Co., and AboitizFoundation, Inc. He is the Director of UnionBank of the Philippines, Pilmico Foods Corp., AboitizLand, Inc., and Family Business Development Center (Ateneode Manila University).

Mr. Aboitiz obtained his Bachelor of Science degree in Business Administration major in Accounting and Financefrom Gonzaga University, Spokane,USA.

173

Francisco (Paco) S. Sandejas, Ph.D.Managing PartnerNarra Venture Capital

Dr. Paco Sandejas is the Founder and Managing Partner of Narra Venture Capital ("NarraVC") which invests in high-

technology companies in the fields of semiconductors, communications, computing, internet, software, and alternative

energy Based in the Philippines Dr Sandejas invests in Silicon Valley the Philippines and other technology hubs of the

Private Sector



energy. Based in the Philippines, Dr. Sandejas invests in Silicon Valley, the Philippines and other technology hubs of theUnited States and Asia. He assists NarraVC's investment companies and clients with early stage financing, marketing,business development, and strategic advice. NarraVC's management group in the Philippines also provides high-technologymanagement and consulting services. Some of NarraVC's successful past investments are SiRF (now CSR), Inphi

Corporation, and Sandbridge Technologies.

Dr. Sandejas is also on the boards of Quintic Holdings, Astute Networks, Stratpoint Technologies, PSI Technologies, XeptoComputing,Credit Information Corporation (Philippines),and Philippine Development Foundation.

Dr. Sandejas has Ph.D. and M.S. degrees in Electrical Engineering from Stanford University where he co-invented theGrating Light Valve. He holds six US and international patents. He completed his B.S. Applied Physics degree from the

University of the Phil ippines as its first summa cum laude and was awarded one of the Ten Outstanding Students of thePhilippines in 1989 by the Philippine President. He has worked as a research consultant for two start-ups in opticalnanotechnology,as a Product Manager at Applied Materials, and as Vice-PresidentatH&Q Asia Pacific.

174

Directory

Bangko Sentral ng Pilipinas

Governor Amando M. Tetangco, Jr.A. Mabini St. cor. P. Ocampo St., Malate Manila

Telephone Number: (632) 708-7206

Fax Number: (632) 708-7209

Department of Agriculture

Secretary Proceso J Alcala Q C

Department of Finance

Secretary Cesar V. Purisima6/F, Department of Finance Building, Roxas Boulevard, Manila

Telephone Number: (632) 523-9215 / 523-9219Fax Number: (632) 526-8474

Bureau of CustomsCommissioner Rozzano Rufino B. BiazonBOC Bldg., South Harbor, Port Area, Manila

Telephone Number:(632) 527-4537 /527-4573



Secretary Proceso J. Alcala4/F, DA Annex Bldg. Diliman, Quezon City

Telephone Number: (632) 920-3986 / 920-2223

Fax Number: (632) 926-6426

Department of Budget and Management

Secretary Florencio B. Abad

General Solano Street, San Miguel, Manila


Fax Number: (632) 735-1955

Department of Energy

Secretary Carlos Jericho L. Petilla

Energy Center, Merritt Road, Fort Bonifacio, Taguig CityTelephone Number: (632) 840-2008

Fax Number: (632) 812-6194


Bureau of Internal RevenueCommissioner Kim S. Jacinto-HenaresNational Office Bldg, Agham Road, Diliman, Quezon City


Fax Number: (632) 925-1789

Securities and Exchange CommissionChairperson Teresita J. HerbosaSEC Bldg., EDSA, Greenhills


175

National Economic and Development Authority

Secretary Arsenio M. Balisacan12 Jose Maria Blessed Escriva Drive, Ortigas Center, Pasig City

Telephone Number: (632) 631-3716 / 3747Fax Number: (632) 631-3747

Public-Private Partnership Center

Executive Director Cosette V. Canilao

NEDAsa QC EDSA Diliman 1103 Quezon City

Department of Public Works and Highways

Secretary Rogelio L. SingsonBonifacio Drive, Port Area, Manila

Telephone Number: (632) 304-3300Fax Number: (632) 304-3020

Department of Tourism

Secretary Ramon R. Jimenez, Jr.

Department of Tourism Bldg TM Kalaw Street Manila

Directory



NEDA sa QC, EDSA, Diliman, 1103 Quezon CityTelephone Number: (632) 929-4968 / 929-5187

Fax Number: (632) 929-8593

Department of Tourism Bldg., T.M. Kalaw Street, ManilaTelephone Number: (632) 523-8411

Fax Number: (632) 521-7374

Department of Trade and IndustrySecretary Gregory L. Domingo

Industry and Investments Bldg., Senator Gil Puyat Ave.,

Makati CityTelephone Number: (632) 890-9333 / 896-1166

Fax Number: (632) 899-5518

Department of Transportation and Communications

Secretary Joseph Emilio Abaya

The Columbia Tower, Brgy. Wack-Wack Ortigas Ave.,

Mandaluyong City

Telephone Number: (632) 727-7109

Fax Number: (632) 726-7104

176

Eleven Years of Commitment to the Investor Community

The effective implementation of the Government’s economic program and itssuccess depends on regular two-way dialogue between economic policy makersand the investment community.

The Investor Relations Office (IRO) was established in July 2001 to strengthenthe country’s relations w ith investors and other stakeholders by promoting activechannels of information flow and dialogue between economic policy makers andinvestors.

Based in the Philippine central bank the Bangko Sentral ng Pilipinas (BSP) the

Serving Our Stakeholders in the Philippines andInternationally

The IRO provides services to a wide range of stakeholders – the Government’s economic agencies, financial institutions,credit rating agencies, bilateral and multilateralorganizations, domestic and foreign investors, the diplomaticcorps, business people, the media and the general public.All services to its stakeholders are underpinned by a set offundamental principles: transparency, accessibility,

timeliness, consistency andfeedback.

Investor Relations OfficePromoting Excellence in Investor Relations. Enhancing Sovereign Value



177

Based in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP), theIRO has a dedicated staff comprised of trained economists and communicationspecialists who work with colleagues in the BSP and the economic agencies toimplement a w ide-ranging programof investorrelations activities.

As the Government has implemented its economic reform program over the lastten years, the IRO’s program of investor outreach has helped to ensure thatinvestor decisions benefit from a comprehensive understanding of the progressin reforms and w hatthey mean for the economic fundamentals of thePhilippines.

In turn, the Government’s economic reform program has made the economyrelatively more resilient amid the global financial and economic crisis. Withstablemacroeconomic fundamentals, the Philippines remains as one of the most viableeconomies for investments intheemerging market.

The IRO is proud to have played a role in communicating the successes of the

Government’s reform program in the last eleven years and is committed tocontinuing its efforts to promotethePhilippine economy.

t e ess, co s ste cy a d eedbac

The IRO adopts a multi-pronged approach to serving itsstakeholders through: Dissemination of key economic and financial information

about economic policy objectives andperformance Seeking market feedback oncurrentand proposed policy

measures Providing feedback to economic policy-makers about

investor sentiment Facilitating candid and constructive dialogue between

policy-makers and investors

The IRO undertakes a range of initiatives to build aw areness among domestic and international investment audiences around the

Government’s economic reformprogram, promote specific investment opportunities in the Philippines andfacilitate information exchange anddialoguebetw eenkey economic policy decision-makers in theGovernmentanddomestic/internationalinvestors. These initiatives include: Regular Economic Briefings to update the business community, media and industry organizations on the country’s economic

performance Investor Roadshows to bring the Government’s resilient economic performance record,commitment to sound economic management

andresponsible reformto members of the internationalf inancialcommunity Media Briefings to raise aw areness of the Government’s progress in economic reforms and plans for ongoing reforms Government Policy Roadshows to increase the business community’s understanding of government policy measures to generate

support for thepolicy implementation process

Publications to inform policy-makers about market developments andsentiment

Investor Relations OfficePromoting Excellence in Investor Relations. Enhancing Sovereign Value



p y p E-mail service tokeep investors and other investorsabreast of data releases ona regular basis An English Languagewebsite, www.iro.ph, to provide a w ide range of easily accessible information about the Philippines’ economic

performance and the government’s economic policies. Thewebsite serves as a warehouse of valuable information such as economicbriefing presentations, press releasesandeconomic andstatisticaldata.

Contact InformationFor further information about the Investor

Relations Office, or about the Philippineeconomy, please contact:Claro P. Fe rnandez

Investor Relations OfficeBangko Sentral ng Pilipinas

A. Mabini St. cor. P. Ocampo St.

Malate Manila, Philippines 1004Tel: (632) 708-7487 / (632) 336-7124

Email: [email protected]

Fax: (632) 708-7489Website: www.iro.ph

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