WESTERN VISAYAS: THE COUNTRY’S FRONT-RUNNER IN

BIO-FUELS AND RENEWABLE ENERGY MIX

WESTERN VISAYAS REGIONAL DEVELOPMENT AGENDA

2010-2020

TABLE OF CONTENTS Page

No. Message of Secretary Ralph G. Recto i Foreword ii Preface iii Table of Contents iv List of Tables and Figures v Acronyms vi PART I. REGIONAL DEVELOPMENT AGENDA 1

A. ECONOMIC AGENDA 2

1. Gearing towards Bio-Fuels and Renewable Energy Development 2 2. Contributing to the Country’s Food Supply 4 3. Advancing Other Major Tourism Destinations 5 4. Producing Globally-Competitive Micro and SME Goods 6

B. OTHER PRIORITY AGENDA 7 1. Social Development Agenda 7 2. Environmental Agenda 8 3. Infrastructure and Utilities Agenda 9

C. STRENGTHENING INSTITUTIONS THRU PUBLIC-PRIVATE PARTNERSHIPS 10

D. CRITICAL ROLE OF PROVINCES AND HIGHLY URBANIZED CITIES 10

E. PREPARING FOR THE DECADE’S CHALLENGES 11

Page No.

PART II. TECHNICAL NOTES 13 A. ANALYSIS OF THE PLANNING ENVIRONMENT 13

1. Population 13 2. Physical Resources 14 3. Economic Activity 17 4. Social Services 22 5. Infrastructure and Utilities 25 6. Governance and Security 29

B. DESIRED SCENARIO 31

C. STRATEGIC INTERVENTIONS 32 1. Entice More Investments in Biofuels and Renewable Energy Mix 32 2. Enhance Agricultural Productivity and Support the Growth of Agri-Industries 34 3. Revive the Sugar Industry 34 4. Strengthen Backward and Forward Linkages of Major Agri-Industries 34 5. Enhance the Growth of the Tourism Industry 35 6. Provide Facilities and Infrastructure Support to Agriculture Production 35 7. Improve the Intermodal Transport Network 35 8. Support the Development and Expansion of SMEs 36 9. Develop Iloilo, Negros and Guimaras as the Next BPO Hubs 36 10. Improve Access to Foreign Markets and other National Destinations 36 11. Strengthen the Flood Control Systems 36 12. Improve the Delivery of Basic Social Services 37

LIST OF TABLES Table No. Title Page No.

1 Population, Density and Growth by Region, Province and Highly Urbanized City: Population Censuses 1995, 2000 and 2007

13

2 Production of Major Agricultural Crops, 1998-2009 (in MT) 19 3 Production of Livestock and Poultry, 2000-2008 20 4 Fisheries Production, 1998-2008 (in MT) 20 5 Private Investment for Region VI, 2001 to 2008 21 6 Selected Health Services Indicators, 2004-2008 22 7 PhilHealth Membership by Program, 2007-2009 24 8 Selected Education Indicators, SY 2004-2008 24 9 Power Situationer For Negros and Panay Grips, 2000-2008 25 10 Number of Barangays Energized, 2000-2009 26 11 Irrigation Development, 2000-2008 26 12 Existing National Road Length, by Surface Type, 2000-2009 27 13 Length of National Bridges by Type, (in Lineal Meters), 2000-2009 27 14 Passenger and Cargo Traffic, 2000-2009 28

LIST OF FIGURES

Figure

No. Title Page No.

1 GRDP Percent Share, by Industrial Origin, Region VI, 1998 and 2008 17 2 GRDP, by Region, 2008 18 3 Sugarcane Production, 1998-2006 19 4 DTI-VI Assisted MSMEs, 2005-2008 21 5 Visitor Arrivals and Tourist Receipts, 1998-2008 21 6 Registered Vehicles, 2000-2008 26 7 Aircraft, Passenger and Cargo Traffic, 2004-2008 26 8 Tax Collection Growth Rate, 2001-2009 27 9 Distribution of LGUs Income Source, CY 2004 – CY 2008 28 10 Distribution of LGU Expenditure for CY 2004-2008 28

ACRONYMS ARMM Autonomous Region for Muslim Mindanao BPO Business Process Outsourcing CALABARZON Cavite, Laguna, Batangas, Rizal and Quezon CAPELCO Capiz Electric Company CAR Cordillera Autonomous Region CENECO Central Negros Electric Company CHED Commission of Higher Education CMTS Cellular Mobile Telephone Service CPU-ANEC Central Philippine University- CSR Cohort Survival Rate DA Department of Agriculture DepEd Department of Education DOST Department of Science and Technology DPWH Department of Public Works and Highways DTI Department of Trade and Industry FS Feasibility Study GDP Gross Domestic Product GRDP Gross Regional Domestic Product HDMF Home Development Mutual Fund HUDCC Housing and Urban Development Coordinating Council JICA Japan International Cooperation Agency LEC Local Exchange Carrier LGU Local Government Unit LPG Liquified Petroleum Gas MCM Microgram per Cubic Meter MDG Millennium Development Goal MIMAROPA Mindoro-Marinduque-Romblon-Palawan MSME Micro Small and Medium Enterprise MT Metric Ton NCR National Capital Region NEDA National Economic and Development Authority NGO Non-Government Organization NHA National Housing Authority PNOC Philippine National Oil Company PNP Philippine National Police PUJ Public Utility Jeepney RDC Regional Development Council SMEDSEP Small and Medium Enterprise Development for Sustainable Employment Program TESDA Technical Educational Skills and Development Authority USA United States of America

Regional Development Agenda: “Western Visayas, the Country’s Front-Runner in Bio-

Fuels and Renewable Energy Mix” 2010-2020

Western Visayas or Region VI is

strategically located at the very heart of the nation, providing the critical link through the Western Philippines Nautical Highway that allows easy access to and from established markets of Metro Manila and Luzon, the thriving cities of the Visayas, and the promising markets of Mindanao.

With fertile plains, rich inland and

marine resources, plus scenic natural attractions throughout the region, Western Visayas is known as the country’s major food provider and leading tourist destination. The regional economy in the next 10 years will be anchored on a modernized and more diverse agriculture and fisheries sector, a dynamic tourism industry, and a vibrant array of micro- and home-based enterprises with globally competitive products.

The vast sugarcane plantations in Panay and Negros Occidental and the steadily increasing

areas planted with jatropha provides enormous opportunities for biofuel production. “Biofuel” basically refers to organically-derived materials where solid, liquid or gaseous materials can be produced for either bio-ethanol or bio-diesel. Bio-ethanol and bio-diesel can be used in their pure forms but are currently blended with gasoline and petroleum diesel, respectively. Current ratios are 1% for diesel and 5 to 20% for gasoline. However, car manufacturers have begun developing vehicles that can run solely on biofuels.

This year, the country’s first bio-ethanol plant with a 40 million liter annual capacity was

inaugurated in San Carlos City (Negros Occidental) and is expected to provide 10% of the country’s ethanol requirements. This P3 billion facility marks a critical technological advancement for the sugar industry in the region. It aims to support the local agricultural community, generate employment in the countryside, decrease dependence on foreign-supplied fuels, and contribute to national renewable energy goals to sustain the country’s environment.

In recent years, the country’s vulnerability to fluctuations in fuel prices challenged the

region to look for alternative sources of fuel and power. With a more aggressive push at the

Western Visayas: Vital link of the Nautical Highway

regional and local levels culminating with the Renewable Energy Summit in 2008, private sector investors expressed their firm commitment to venture into renewable and eco-friendly power-generating projects. Already, the Department of Energy has declared Western Visayas as the country’s laboratory on renewable energy, pointing to up-coming projects that will draw power from wind, solar, bio-mass, recycled water, sea currents, and hybrid power configurations.

Thus, Region VI will be the front-runner in bio-fuels and renewable energy mix which will

result in significant reductions in oil importation and fuel costs for the country. Western Visayas’ governors already committed to lead the region toward a 100% renewable energy target.

A. ECONOMIC AGENDA

1. Gearing towards Bio-Fuels and Renewable Energy Development The region is poised to provide full support for investors on bio-fuel and renewable energy

projects. Joint ventures with existing sugar mills are already inked and will continually be promoted to reduce costs and take advantage of the proximity of raw materials and facilities.

Research on the most suitable crops to be planted will be intensified by the DA and DOST,

as well as, research arms of higher education institutions to guide farmers and contract growers. Extension support will be in the form of trainings, provision of planting materials, tissue culture laboratories, and market information on prices to ensure profitable returns for planters. Farm areas currently planted with rice and corn will not be compromised in order to protect the supply of these staples for human consumption and, in the case of corn, to sustain feeds production for the region’s growing livestock and poultry industries.

A network for collecting agriculture wastes like rice and corn stalks, rice husks, wood chips,

bagasse, coconut husks, among many others, will be set up starting at the barangay leading to a central consolidator. Existing rural cooperatives will be strengthened and utilized in this endeavor to provide additional income to their members.

Among the on-going and completed power generating projects in the region are the

following: Hydro Power Sunwest Water & Electric Company, Inc. (SUWECO)

8MW Villasiga Hydro 2.1MW Guiamon-San Ramon Hydro

Bugasong, Antique Laua-an, Antique

on-going on-going

National Irrigation Administration (NIA)

Jalaur River Multi-Purpose Project to generate 14MW of power

Calinog & Lambunao, Iloilo

2nd level scoping finished

Conal Holdings / Alto Power Mngt Corp.

40MW Bago River Hydro (P4B investment which will build 3 hydro power plants along the Bago River in San Carlos, Don Salvador Benedicto and Murcia) 9-15MW Carol-an Hydro

DS Benedicto, Neg. Occ. Kabankalan City, Neg. Occidental

MOA for hydro power exploration inked between Conal/Alto, Negros Province & LGU-Kabankalan

CPU-ANEC/JICA 15kW Igpatuyao Micro Hydro

Sebaste, Antique on-going

Preferred Energy, Inc

40kW Canauilan-Barasalon Micro Janiuay, Iloilo completed

Japan Fund Poverty Reduction

32kW Balea Micro Hydro 32kW Vergra-Magtuod Micro Hydro 21kW Baclao Micro Hydro

Calatrava, Neg Occ. Toboso, Neg Occ. Cauayan, Neg Occ.

completed completed completed

Wind Power Trans-Asia Oil Renewable Energy Corp. (TAREC)

54MW San Lorenzo Wind Farm (US$100-million investment)

San Lorenzo, Guimaras

FS completed

Biomass Power Central Azucarera de San Antonio

15MW Passi Co-Gen Power Plant

Passi, Iloilo

operational

Green Power Panay Phils, Inc.

15MW Cabalabaguan Biomass

Mina, Iloilo on-going site prep

Asea One Power Corp.

12 MW Agbanawan Biomass Plant 18 MW Biomass Power Plant to serve

Banga, Aklan Iloilo, Antique, Guimaras

site acquired on-going site acquisition

First Farmers Holding Corp.

21MW FFHC Co-Gen Power Plant Talisay City, Neg. Occ.

commissioned; 5MW-Power supply agreement inked between CENECO & FFHC from 2008-2010 to be approved by ERC. Power is meanwhile exported to Cebu.

Bioethanol

Bronzeoak

San Carlos Bioenergy – The 1st sugarcane based ethanol (125,000 liters daily capacity) and cogeneration plant (8MW) in Asia

San Carlos City, Neg. Occ.

operational; inaugurated last Sept 4, 2009

Roxol Bioenergy Corp.

Bioethanol Plant with 100,000 liters-daily production capacity

La Carlota City, Neg. Occ.

53% complete as of June 2009 (P1.5B investment)

Biofuels International Philippines, Inc.

Co-generation plant capable of producing 19 MW at 45 million Liters of alcohol

Murcia, Negros Occidental

Site acquisition

Geothermal

Energy Dev’t. Corp.

10MW-Northern Negros Geothermal Project 30MW- Northern Negros Steam Augmentation Project

Bago City & Murcia, Neg. Occ. Buffer Zone of Mt. Kanla-on Natural Park, Neg. Occ.

recommissioned last May 2009 on-going civil works

A techno-economic study of the Ethanol Alliance disclosed in 2007 shows that Negros

Island has the potential to host seven to nine biofuel production facilities and each can produce an average of 100,000 liters to 150,000 liters of ethanol a day. Meanwhile, the Northern Negros Bio Fuel Corp. has signed a memorandum of agreement with the Philippine National Oil Corporation (PNOC) Alternative Fuel Corp. for the planting of jatropha curcas on about 5,000 hectares in Cadiz City in one to three years.

Solar projects in far-flung areas will be used to power schools, health centers and even

residences. In major urban centers, Local Government Units will advance the use of E-jeepneys with solar panels to replace fuel-dependent PUJs.

The distribution of power will be facilitated with the completion of the Northern and

Southern Panay Backbone Transmission Projects by 2010 and 2011, respectively. These will essentially serve as the electricity highway for the provinces of Aklan, Antique, Capiz and Iloilo. The underwater cables interconnecting Panay, Guimaras and Negros will be uprated to allow for high capacity power sharing within Region VI and among the Visayas regions.

The establishment of reliable and cheaper sources of energy will pave the way for

modernizing the agriculture and fisheries sectors, attracting more investors for big-ticket manufacturing ventures and, ultimately, improving the quality of life of the region’s households.

2. Contributing to the Country’s Food Supply

Western Visayas will remain as the country’s major producer of rice, fish and sugar. Efforts are now being made to further diversify its farm products to take advantage of its large tracts of land suitable for growing various crops. In the coming years, increased production of corn, high-value vegetables, fruits, improved coconut varieties, and rootcrops will be targeted through an effective extension program delivered by regional agencies, state universities and colleges, and local government units.

Focus will be on the provision of better seed varieties, modern farm equipment, technical

trainings on efficient and sustainable farm practices, utilization of farm wastes for added income, and production of organic fertilizers and pesticides. Technical support will be provided for livestock and poultry growers, especially in the improvement of breeds, and in the installation of a system of security and protection of stocks from harmful diseases.

Major irrigation projects in the following priority areas will be implemented to increase the

effective crop harvest areas and production:

Aklan-Panukuyan River Irrigation System (Aklan, P56.2M)

Dalanas River Irrigation Project (Antique, P188M)

Jalaur Proper and Sibalom-Tigbauan River Irrigation Systems (Antique, P19.5M)

Cabano Reservoir Irrigation Project (Guimaras, P585)

Jalaur Multi-Purpose Project Stage II (Iloilo, P10.8B)

Asue River Basin Agriculture Development Project (Iloilo, P9B)

Malogo Irrigation Project (Negros Occidental, P650M)

Binalbagan River Irrigation Project (Negros Occidental, P270M) Custom-built drying facilities will be designed to ensure higher buying prices for palay.

While private investors will be enticed to set up rice mills, warehouses, and other post-harvest facilities, farmers’ cooperatives will be strengthened through capability-building trainings on entrepreneurship, marketing, financial management, etc. to empower them to stand up on their own, decide on their future plans, and increase their capacities to solve problems and issues besetting their organizations and members.

Among other regions in the country, Western Visayas ranks 2nd in municipal fisheries

production, 3rd in commercial/marine fisheries, and 5th in aquaculture. As such, the sector will further be boosted with support along modern production and harvesting techniques, marketing, proper packaging, branding, and preservation procedures. A more efficient information and feedback mechanism on fish and aquaculture products in demand and their prices will be put in

Bago River Irrigation System in Negros Occidental.

place. Because of the very perishable nature of fish and fishery products, blast-freezing facilities will be established to ensure that products reach the markets in good condition. Good post-harvest practices will be emphasized in trainings, particularly among exporters, to meet international standards and stringent requirements of importing countries.

Brackish and freshwater aquaculture will be promoted to develop marginal marshlands in

support of the increasing demand for milkfish, tilapia, catfish, seaweeds, mussels, crabs, shrimps, and oysters. A rehabilitation plan will be formulated to take action on degraded marine ecosystems due to illegal fishing activities; downstream siltation as a result of forest degradation; and water pollution caused by agriculture and domestic wastes.

Farm, fishpond, and grazing areas will undergo a facelift to include eco-friendly and

appropriate landscaping, drainage, improvement in facilities, operational systems, among others, to transform these into agri-tourism areas, consistent with the overall tourism development of Western Visayas, as well as, to provide prospects for other businesses in these areas.

3. Advancing Other Major Tourism Destinations

From its idyllic beaches to its rugged mountains, Region VI offers a wealth of adventure

options and a variety of experiences. Its world-famous, distinct, colorful festivals throughout the year have been catalyzing the growth of micro-enterprises catering to a variety of interesting souvenir items and sought-after services.

Travel itineraries to natural, man-made, historical, religious, economic, cultural, and

culinary attractions are already being arranged to accommodate emerging preferences of local and foreign visitors. Tourism circuits will be promoted among LGU alliances to market interregional tourism through the integration of itineraries and packages. A stronger regional tourism network will be established, composed of local tourism boards and representatives of private tourism-related establishments and organizations in the areas that will link with international tourism organizations.

Tourism development will be based on

sound management of resources and will be sensitive to local customs and traditions. Development standards will be included in local zoning ordinances and other land regulatory measur es to maintain the environmental integrity within and around the site during and, especially, after the construction of tourism facilities.

Greater emphasis will be placed on

upgrading the skills and specialized services in tourism-related establishments to raise the quality of manpower in hotels, restaurants, entertainment, spa, and other outfits to world-class standards.

The role of LGUs will be crucial in ensuring a tourist-friendly environment in their areas of jurisdiction. Tourism information centers will be established in strategic entry points to guide travelers to their destinations and to assist them in their needs. Appropriate signs will be installed to provide directions, while drivers of public utility vehicles will be trained to welcome and guide visitors. Cleanliness and orderliness will prevail especially in cities and poblacions. Urban planners and architects will be tapped to help LGUs improve their landscape and focus will be given to sustainable and eco-friendly design concepts.

Tourism is expected to translate to opportunities for jobs, livelihood, and allied services,

just as it has catalyzed the growth within and around Boracay Island (Malay, Aklan), the Mt. Kanlaon National Park (Negros Occidental), Bugang River (Pandan, Antique), Mambukal Hot Springs (Murcia, Negros Occidental), the diving and sightseeing spots in Southern and Northern Negros Occidental, Bulabog Putian National Park (Dingle, Iloilo), and Guimaras Island, among others.

In the coming years, more visitors are expected to include the islands in Northern Iloilo,

Madia-as National Park (Antique), Pangilatan Falls (Capiz), Jawili Eco-Tourism Park (Tangalan, Aklan), and the highlands of Don Salvador Benedicto (Negros Occidental), among others, in their itineraries, to also experience the beauty and splendor of nature in these areas.

The Western Visayas Regional Historical and Cultural Council will be tapped to oversee the

strengthening of counterpart local bodies to secure, protect and promote heritage sites and attractions. Technical workshops will be conducted for the academe, building contractors, museum curators, architects, planners, etc. to provide them the skills and know-how in preserving valuable artifacts, antiques, and early structures. The region will ensure that relics will be kept intact to always remind us of our past and our history.

4. Producing Globally-Competitive Micro and SME Goods

The region takes pride of the over two thousand home-based, micro-enterprises that have

made a name for themselves because of the consistent quality of their products. These are broadly classified into processed food, fabrics, jewelry, metal/bamboo/wood/shell crafts, furniture, and other gift items.

Government support for these enterprises will include expediting laboratory tests,

technological researches, promotion and marketing, packaging, proper labeling, and further improvement in value-adding, especially for raw materials that are accessed within the region. Designs for crafts, jewelry, furniture, and gift items will be demand-driven drawing from local and international trade fairs. Competitions for innovative and promising products will be conducted in tandem with the year-round festivals in the region’s provinces/cities to continually motivate producers to come up with better quality and highly saleable items.

The fabrics of Western Visayas are distinct and classic. The world-renowned jusi, piña,

abaca, sinamay, silk, and even banana fabrics are used solely, or blended with one another, to create the best combination for durability, texture, and pattern. Almost all products from these

fabrics are handmade and command excellent prices for their detail and design from skilled workers. Hablon is a woven cloth unique to Panay and is also sought after for patadyong, blankets, handkerchiefs, table runners, and scarves. The region will provide incentives to ensure the continuity of these traditional skills and talents as part of the region’s heritage. Yearly fashion events will be held among prominent designers to provide the venue to parade their creations and increase their national exposure.

Display centers will be established in cities and capital towns, where there are none, to

provide a one-stop souvenir shop for visitors and local buyers. Annual features of specific commodities, e.g. mango, pineapple, sugarcane, coconut, banana, cashew will be encouraged to draw ideas on value-adding and to continually improve on existing products.

The increasing local and foreign demand for cutflowers and foliage will usher continuous

growth and development of the region’s producers and exporters. From the lowland areas of Capiz to the cool upland farms of Iloilo, Antique, and Negros Occidental cutflowers and foliage production will be expanded and diversified through technical trainings, input support, and marketing assistance by line agencies, LGUs and SUCs.

B. OTHER PRIORITY AGENDA

1. Social Development Agenda Poverty remains to be a major concern of the region. The growth of the region’s economy

is expected to translate into more jobs, more livelihood opportunities, and prospects for more investments. However, government will have to consciously and pro-actively ensure that the benefits of development will be experienced and enjoyed by all.

Western Visayas will pursue its priority social agenda that will include interventions to

resolve some of the region’s prevailing concerns along health, education, housing and welfare. These include the following:

provision of potable water in remaining unserved barangays expansion of feeding program/communal gardens for HHs with malnourished children decongestion of tertiary hospitals thru the upgrading of provincial/district hospitals and

improvement of rural health units acquisition of health equipment for provincial/district hospitals and rural health units retraining of health and medical personnel and rural health workers and volunteers reduction of classroom, desks, and textbook backlogs especially in rural areas implementation of dual training systems, multi-skills development, community-based

training program and skills training conducted in TESDA-supervised schools retraining of teachers specially along effective methods of teaching and computer skills grant of housing assistance to informal settlers and families affected by infra projects livelihood assistance to poor individuals graduating from entrepreneurship programs special programs for indigenous people, persons with disabilities, victims of abuse, the

youth and the elderly continuous advocacy on responsible parenting empowerment of peoples organizations. In order to reach out to as many target families as possible, the following strategies will be

adopted by local government units concerned: 1) partnering with NGOs whose programs align with the priority agenda of the region; 2) enlisting major businesses and companies as part of their corporate social responsibility; and 3) tapping civic organizations, professional groups, fellowship clubs to pursue barangay and community-level outreach projects.

Local government units will continue to play the lead role in providing basic social services

to their constituents. Regional line agencies, government corporations, state universities and colleges will support their plans and provide the needed technical assistance. Efforts will be made to improve on data-gathering and storage of social development statistics, including sex-disaggregated data, for better analysis of local plans, programs/projects and their impact on the populace. These information will be used to support requests for more funding support from local sanggunians, the private sector, and even official development assistance.

2. Environmental Agenda

Western Visayas has a high biodiversity level with its natural parks, marine and forest

reserves, and wildlife sanctuary serving as habitats of rare flora and fauna. These include Mt. Kanlaon Natural Park in Negros Occidental, the Sibalom Natural Park in Antique, and the Northwest Panay Peninsula encompassing Antique and Aklan. The latter is the only remaining low-elevation forestland in the region with an intact old growth forest. The Samponong Bolo Bird Sanctuary in Sara, Iloilo is where the migratory Purple Heron and Rufuos Night Heron nest and provide an incredible spectacle for nature lovers.

The region will exert its efforts in preserving these environmentally critical areas, including

its watersheds, mangrove areas, coastal resources and river basins. Already, a number of LGUs have banded into alliances to ensure a comprehensive approach in safeguarding, regulating, and sustaining these areas. Among the priority watershed basins of Region VI are the following:

Aklan Watershed Basin Mau-it Tipuluan Watershed Basin (Antique) Dalanas Watershed Basin (Antique) Panay Watershed Basin (Capiz) Maasin Watershed Basin (Iloilo) Jalaur Watershed Basin (Iloilo) Sibunag Watershed Basin Bago Watershed Basin (Negros Occidental)

Himogaan Watershed Basin (Negros Occidental) Ilog Hilabangan and Kabankalan Watershed Basin (Negros Occidental) Sipalay Watershed Basin (Negros Occidental) Disaster risk areas will be identified and closely monitored to avoid unnecessary loss of

lives and property. Mitigation measures will be introduced especially in landslide- and flood-prone sections with the support of local government units. Because of increasing incidence of flooding especially in the region’s settlement areas, the following priority flood control projects will be pushed for immediate funding and implementation: Iloilo Flood Control & Environmental Infrastructure Project, Stage 2; Panay River Basin Flood Control Project; Bacolod Flood Control Project; and Ilog Hilabangan Flood Control Project.

In compliance with the Solid Waste Management Act, sanitary landfills and material

recovery facilities will be installed in major cities and municipalities. Proper disposal of garbage will be emphasized, starting at the household level and supervised by Punong Barangays. Schools, churches, and civic organizations will be tapped to disseminate information and assure compliance.

3. Infrastructure and Utilities Agenda

Located in the central part of the Philippines, Western Visayas serves as a vital connection

and jump-off point to other regions in the country. The existing nautical highway carrying goods and passengers from Luzon via Roxas, Mindoro in Region IV-B passes through the Caticlan Jetty Port in Aklan to gain access to Panay and Negros islands, reaching Dipolog City in Mindanao via Dumaguete City in Negros Oriental. Over 80 public and private ports are scattered throughout the region making Western Visayas one of the more accessible regions by sea.

The Iloilo Commercial Port Complex is one of the 10 identified international ports of the

country and is the principal port of entry of the region. The Bacolod Reclamation Development Company, on the other hand, already accommodates international vessels. The modernization and improvement of logistics support in these ports and the upgrading of equipment and facilities will support the region’s domestic and international trade that is expected to impact on its agriculture, industry and commerce.

The newly completed Iloilo Airport in

Cabatuan, Iloilo, the Bacolod-Silay Airport in Silay City, and the expanded Kalibo Airport in Aklan already meet international aviation standards. More domestic routes and frequent flights have been established to cater to the demands of domestic passengers. Negotiations with the Civil Aeronautics Authority of the Philippines and international airlines are on-going to establish international flights to and from neighbors such as China, Japan, and

Korea to directly bring in foreign tourists eager to experience the distinct heritage, culture and natural attractions of the region. Accessing world-famous Boracay will be easier with the improvement and expansion of the Caticlan Airport, to be implemented via a build-operate-transfer scheme. Plans for a green and eco-friendly design with facilities that will ensure ease and comfort for travelers have already been finalized.

Meantime, going around the islands of Panay, Guimaras, and Negros by road will be very

convenient with the concreting of all national highways, especially roads leading to tourist destinations. The presence of a complete maintenance depot of a major bus liner in Negros Occidental assures passengers of safe and modern buses plying within and outside Region VI.

The growing traffic in the region’s highly urbanized cities of Iloilo and Bacolod, as well as,

the growing and congested cities of Roxas, Kalibo, and Silay needs to be attended to in the coming years. To systematize the entry of public utility vehicles in cities, jeep and bus terminals will be upgraded and modernized, starting with the improvement of their physical operations layout, setting-up of clean and sanitary restrooms and, more importantly, the training of terminal operators and personnel for a more client-friendly service. Public-private partnership schemes will be explored to ensure efficiency and profitability of the terminals.

C. STRENGTHENING INSTITUTIONS THRU PUBLIC-PRIVATE PARTNERSHIPS

The private sector will spearhead the growth and progress of the region while government will provide the necessary support, streamline regulatory systems, and initiate appropriate policies that will attract more investments into Western Visayas rather than elsewhere. The Regional Development Council will play a crucial role in harnessing the support of agencies and local government units, in partnership with the private sector, to actively pursue the region’s development agenda by laying the groundwork in achieving its economic and social goals.

Public-private partnership schemes will be advanced so that the corporate sector, civic and

professional groups and other non-government organizations will engage in projects, including those traditionally implemented by government. Mobilizing private sector resources will free local government funds that can then be used for poverty-alleviating measures designed to benefit the disadvantaged, the deprived and the underserved.

While the RDC will take the lead in securing funding support for big-ticket programs and

projects that cut across two or more provinces, it will continue to assist LGUs, regional agencies, SUCs and government owned and controlled corporations in accessing funds to support their own priorities.

A list of projects to be undertaken jointly with the private sector will be prepared. Local

Development Councils will select partners who possess the expertise, experience and track record in projects to be pursued. Priority projects to be promoted for public-private partnerships include:

reforestation projects post-harvest facilities solid waste management tourism projects school buildings day care centers public markets communal water facilities

coastal resource management materials recovery centers beautification and cleanliness programs skills and livelihood training programs rural and barangay health/nutrition centers low-cost housing public utilities terminals small infrastructure projects.

The Regional Development Council will conduct market and investment forums with business groups to follow-up on commitments set in last year’s Renewable Energy Summit. As an incentive, bilateral partners (China, Japan, Korea, Australia, New Zealand, Spain) will be invited to explore the possibility of supporting upcoming and committed projects.

The Provincial/City/Municipal Project Monitoring Committees will continually be

strengthened and supervised by the Regional Project Monitoring Committee thru trainings, exposure trips, and attendance to regular quarterly meetings to see to it that problems being encountered in major on-going programs/projects will immediately be attended to. Private sector representatives who are members of the monitoring committees are expected to undertake their own validation of the monitoring reports and submit their project exception reports, if necessary.

D. CRITICAL ROLE OF PROVINCES AND HIGHLY URBANIZED CITIES

The provinces will lead local government units in realizing the development agenda adopted

by the region. They are expected to enjoin the cities and municipalities under their jurisdiction to prepare their areas and streamline their operations to be ready for investors and tourists. Iloilo City, the regional capital, and Bacolod City, the secondary growth center of Western Visayas, will be the hub of commercial, financial and trade transactions where businesses will impact on outlaying suburbs through forward and backward linkages.

Aklan will take advantage of the attraction of Boracay to lure visitors to other destination

areas in the province. Kalibo Airport serves direct flights to and from Incheon and Taipei, South Korea through international flights of Asian Spirit, Mandarin Airlines and Pacific Pearl Airways. More air links will soon be offered with direct flights to and from Singapore, Hong Kong, Shanghai and Beijing establishing and cementing Kalibo's reputation as the international gateway to the Western Visayas region.

Antique got its tagline “where the mountains meet the sea” because of the relatively short

distance between its mountains and its coastal areas which lies parallel to it. The Antiqueños are noted for their industry and renowned weavers. Household enterprises will continue to flourish providing income to its residents. Investment opportunities with bright prospects in the province include: muscovado sugar industry, seaweed processing, marble processing, gemstone and semi-precious stone processing, fiber extraction/processing/weaving.

Capiz, the seafood capital of the Philippines, boasts of its 80-kilometer coastline and wide

expanse of swampy lands that can easily be converted into fishponds. Its rich fishing grounds and aquamarine industry provides harvests that include prawns, milkfish, blue marlin, squid,

oysters, shrimps, seaweeds, and angel wings supplying high-end hotels and restaurants of the country.

Guimaras is an exotic island known for the famous and the best export-quality mangoes .

It has a thriving agri- and marine-based economy producing kalamansi and cashew nuts, fresh fish, shellfish, and lobsters and home-based handicraft enterprises, aside from its lime industry, mining industry, fruit processing industry, and coconut industry .

Iloilo’s rich heritage is showcased in multifarious festivals celebrated in the city and various

towns of the province. Dubbed as the “Province of Festivals,” Iloilo is proud of its internationally acclaimed Dinagyang Festival, together with smaller but similarly riveting festivities of its municipalities throughout the year. Iloilo takes pride in being the food basket and rice granary of the region owing to its fertile flat lands and seas that yield plentiful harvests.

Negros Occidental is known as the “sugar bowl of the Philippines” producing more than

half of the country’s requirements from its 15 centrals. It remains to be one of the most progressive and largely developed Philippine provinces, in large, due to the profits from the sugar industry but also due to diversification to other fields. Negros Occidental will spearhead Western Visayas’ bid as the country’s front runner in biofuels and biodiesel production.

E. PREPARING FOR THE DECADE’S CHALLENGES The realization of the regional development agenda in the next decade will be coordinated

and monitored by the Regional Development Council. As its secretariat, the NEDA regional office will continue enhancing the capabilities of local government officials and staffs along planning, investment programming, resource mobilizing, and monitoring to institutionalize these processes at the local levels.

The Provincial Development and Physical Framework Plans will capture the region’s

development directions in its own local strategies, as well as, in the identification of priority programs and projects to ensure the realization of end goals. A conscious effort on the part of government will be placed in mobilizing private sector participation in all its endeavors to bring about synergy and cooperation among all partner stakeholders. Detailed timetables and activities will be discussed in special meetings among relevant partners to bring to fruition the foregoing agenda.

TECHNICAL NOTES

A. ANALYSIS OF THE PLANNING ENVIRONMENT 1. Population

Regional and National Context

Western Visayas is the fourth most populated region in the country estimated at 6,843,643

as of 2007 or 7.7% of the Philippines’ 88,574,614. It follows CALABARZON, NCR, and Central Luzon, in that order. The annual population growth rate of the region is 1.35% (2000-2007), which is way below the country’s annual growth rate of 2.04 percent.

Compared with the other regions, it ranked 5th from the bottom, with Ilocos Region

recording the lowest growth rate of 1.10 %. The growth rate is lower than the 1.56 % registered between censal years 1995 to 2000 but relatively higher than the 1.30 % between censal years 1990 to 1995. The region’s population growth rate has been consistently below that of the country. If the current growth rate continous, the region is expected to double its population in 51 years or in 2060. In 2020, the region will have an additional population of 1,303,327.

The region’s total land area is 20,794.2 km2, the 7th largest in the country, constituting 6% of

the country’s total. ARMM has the largest land area with 33,511.4 km2 while the NCR has the smallest, with 619.5 km2 which is actually a bit larger than the Province of Guimaras. The NCR is the most densely population region with 18,648 persons/km2 followed by CALABARZON with 696 persons/km2. Western Visayas ranked 6th from the top with 329 persons/km2. The least densely populated regions with populations below 100 persons/km2 are CAR and MIMAROPA with 78 and 86 persons/km2, respectively. Regional and Provincial Context

Among the provinces of the region, Negros Occidental is the most populated (2,370,269)

and has the largest land area with 7,809.2 km2, while Guimaras is the least populated (151,238) has a land area of 604.6 km2.

2. Physical Resources

Topography and Slope

The islands comprising the region exhibit similar physical features characterized by

relatively wide stretches of rivers and coastal lowlands that spread inland and series of rugged hills and mountains in the interior areas. The region is surrounded by bays and coves that serve as good harbor and fishing grounds.

The slope characteristic of the region is a mix of level to nearly-level and rolling to

moderate steep slopes. About 50% of the region’s 2,022,311 hectares are of the relatively developable range of 0-18% slope and about 20% are within rolling to moderately steep slopes.

The remaining 30% are in the steep and protection-oriented slope range of 30 % and above.

Table 1. Population, Density and Growth Rates by Province and Highly Urbanized City: Population Censuses 1995, 2000 and 2007

Provinces/ Cities 2007 (Aug 1)

2000 (May 1)

APGR (2000-2007)

Land Area (Km2) Density

Provinces Negros Occidental 2,370,269 2,136,647 1.44 7,809.2 299 Iloilo 1,691,878 1,559,182 1.13 5,023.2 333 Capiz 701,664 654,156 0.97 2,594.6 270 Antique 515,265 472,822 1.19 2,729.2 189 Aklan 495,122 451,314 1.29 1,821.4 272 Guimaras 151,238 141,450 0.93 604.6 250 Highly Urbanized Cities Iloilo City 418,710 366,391 1.86 56 7,477 Bacolod City 499,497 429,076 2.12 156 3,202 REGION VI 6,843,643 6,211,038 1.35 20,794.2 338 PHILIPPINES 88,574,614 76,506,928 2.04 343,282 258

Source: National Statistics Office, Regional Social and Economic Trends, 2008

In terms of elevation, more than half of the region’s land area are within low elevation areas or below 100 meters elevation. These are areas where most food crops are grown and economic activities take place. On the other hand, about 36% of the region’s land resources are within the middle catchments (110-500 meters elevation) where temperatures vary widely and soil crusting, due to warm temperatures, could cause soil erosion.

Water Resources

The region has several river basins and water divides scattered throughout the islands of

Panay and Negros that can adequately supply the region’s requirements for agricultural, industrial and domestic use. Its three major river basins: Jalaur and Panay Rivers in Panay Island and Ilog-Hilabangan River in Negros Occidental, have a combined drainage area of more than 1,400 km2 and a combined run-off of more than 3,500 MCM. Other major rivers are Aklan, Sibalom-Guimbal and Bago-Binalbagan, with drainage areas ranging from 852 to 1,945 km2. It has also 36 minor rivers, with Negros Occidental having the most number of rivers at 16 and the largest watershed areas at 4,757 km2.

Water resources development is mainly oriented for domestic water supply, irrigation and

hydropower. Little attention is given to proper utilization and scientific management. Climate and Weather

The region has two types of climate: Type I has two pronounced seasons – dry from

November to April and wet during the rest of the year; Type III where the seasons are not very pronounced – when it is relatively dry from November to April and wet during the rest of the year. The region has a peak rainfall occurrence in September and has the lowest in March to April. Average annual rainfall ranges from 2,267 mm to 3,328 mm. Like the rest of the country, it has high temperatures because of its tropical maritime setting and warm air currents. Mean

temperatures range from 26°C to 28°C which considerably fit the requirements for crop production particularly cereals, rootcrops, legumes and perennials.

Land Use Potentials and Constraints

About 68% of the region’s land area of 20,213 km2 is classified as alienable and disposable

and 32%, as forestlands. Of the total A & D lands, about 63% is suitable for growing crops while 42% of forestlands is considered as protection forests, where 24% is watershed forest reserves.

In terms of land utilization, 82% of total land area is utilized for production and only 14%,

for protection. Built-up areas occupy only about 4% of the total land area. Disaster-prone Risk Areas

The region, like most parts of the country, is greatly affected by several natural hazards that

constrain the development of its resources due to its unique geographic and geological settings. These hazards are impossible to prevent but their adverse impact can be mitigated by preventive measures. Among the hazards affecting the region and specific areas at risk are shown below:

Earthquake-prone areas Western Visayas is bounded by 3 major fault lines; Tablas

Fault, Philippine Fault, and Negros Trench. The towns of Culasi, Antique and Libacao, Aklan are subject to seismic hazards due to the presence of Banglid, Dalanas and Timbaban minor faults. Buruanga Peninsula is directly affected by Tablas Fault while Himamaylan and Hinoba-an, Negros Occidental are affected by two parallel faults.

Tsunami-prone areas Areas near the San Joaquin-Miagao area in southern Iloilo and Kabankalan-Cauayan-Sipalay area in southern Negros

Landslide-prone areas Most areas found in Antique, the mountainous boundaries of the four provinces in Pana, and the highland areas of Negros Occidental

Areas prone to volcanic eruption, lava flows and fallouts

Three inactive and one active volcanoes are located in Negros island. Kanlaon Volcano is one of the 6 most active volcanoes of the country. Other volcanoes in Negros include Mt. Silay, Mt. Mandalagan and Cuernos de Negros. Areas directly affected by volcanic eruption fallouts, etc. are the municipalities of Moises Padilla, La Castellana and La Carlota City.

Liquefaction-prone areas Iloilo City; Kalibo, Aklan; Roxas City, Pan-ay, Pontevedra , in Capiz; reclaimed areas in Bacolod City

Areas prone to tropical cyclones and storms

The whole of Region VI is most often affected by storm surges every time a typhoon hits the Visayas

Flood-prone areas In Aklan, the flood plain has an approx. area of 169 sq km covering the towns of Kalibo, Banga, Libacao, Madalag, Balete, Numancia, Lezo, New Washington, Tangalan and Makato. In Capiz, the Panay River Basin flood plains cover the towns of Pan-ay, Pontevedra, Panit-an, Dao, Dumalag, Cuartero, Dumarao, Maayon, Ivisan, mambusao, Pilar, Pres. Roxas, Altavas, Sigma and Roxas City. In Iloilo, the Jalaur River flood plains cover the municipalities of Leganes, Zarraga, Dumangas, Barotac Nuevo, Pototan, Dingle, Duenas, Passi and Calinog. Iloilo City is affected by overflows from Jaro River. In Negros Occidental, the flood plain of Ilog-Hilabangan River covers the municipality of Ilog and Kabangkalan.

Areas prone to salt water intrusion

Seashores from Iloilo City to Oton in Panay; and in Negros Occidental, from the towns of Binalbagan to Ilog and from Sagay to Escalante.

Drought-prone areas Usually affected are the alluvial plains due to the occurrence of El Nino phenomenon

Mineral Resources

The region is rich in metallic and non-metallic resources. Mineral ore reserves, which

include primary copper, manganese and pyrite, are found practically in all provinces of the region. Estimated reserve for primary copper in Negros Occidental ranges from 85 to 505 million MT. Non-metallic minerals consisting of clay, cement raw materials, limestone for agricultural and industrial uses, silica, rock phosphate and guano, feldspar, sand and gravel are, likewise, abundant. Estimated reserve for limestone in Guimaras and Capiz ranges from 30 to 40 million MT. However, there is a need for a long-term mineral exploration and development program to assess the mineral potentials of the region’s mountains and other areas believed to contain significant primary and secondary mineral deposits.

In 2001, the region was the second biggest contributor in terms of gross value added in

mining and quarrying sector in the country. However, mining operations at the moment are limited to small-scale mining and quarrying because of the suspension of operation of the two biggest mining companies in Negros Occidental in 2002. Presently, there are indications that these companies will resume operation.

Major Tourist Attractions (Landscape/Seascape)

Western Visayas is known for its colorful history and diverse culture with the presence of

its distinct and fabulous landscapes, natural resources which include rugged mountains, breath-taking tropical coastlines and islands with panoramic view, along with other beautiful land formations that were developed into tourist areas. The attractiveness, accessibility, number of festivals and activities of Region VI are superior than most regions and are comparable to many in the world.

One of the major tourism zone in Region VI is the Boracay Island in the Municipality of

Malay, Aklan. It is considered as one of the most beautiful islands in the Philippines, famous for its fine white sands, coral reefs and rare shells. The region’s natural attractions that need to be preserved and protected for the future generations are as follows:

Aklan

Malay Boracay Island Banga Tig-ayon Hill Tangalan Jawili Falls and Campo Verde Altavas & Batan Tinagong Dagat Kalibo Bougainvilla Beach

Antique Culasi Mararison Island San Jose Camp Autajay (Pina Beach) Palma, Barbaza Hatay-hatay Resort Sebaste Igpasungaw Falls Pandan & Libertad Marble Mountain

Capiz Dumalag Suhot Cave Roxas City Baybay Beach Roxas City Olatuyan Islands Mambusao Quipot Cave Maayon Igang-Maayon

Guimaras Sibunag Nagarao Island Jordan Puting Balas Jordan Tatlong Pulo

Iloilo San Joaquin Tiolas Carles Sicogon Island Concepcion Pan De Azucar

Negros Occidental Murcia Mambucal Mountain Resort Escalante Isla Puti Sagay Suyoc Island

Hinigaran Enchanted Lake Linao Cauayan Bulata Island

3. Economic Activity

Comparative Economic Structure

Region VI is the 4th largest regional economy in the country, the biggest outside of Luzon. In 2008, the Services sector contributed 48% of the region’s GRDP, followed by the Industry sector which contributed 27%, while the Agriculture sector accounted for 25%. From 1998 to 2008, the region’s Industry sector increased its GRDP share by 8% while Agriculture decreased its share by 12% indicating a transformation in the region’s source of economic growth.

While the shift from agriculture to industry over the span of 10 years has been relatively

slow, the diversification from an agriculture-dependent economy was manifested in the past decade. An indicator of this structural shift is employment, where jobs in non-agriculture steadily increased from 49% in 1998 to 57% in 2006, brought about by opportunities in the Industry and Services sectors.

Figure 1. GRDP Percent Share, by Industrial Origin, 1998 & 2008

Economic Growth

The regional economy grew relatively faster than the national economy. The average economic growth of Region VI was 7.7% during the period 2006-2007 compared with the 7.1% GDP growth during the same period. The following year (2007-2008), the regional economy expanded by 4.4%, higher than the 3.8% GDP growth. During these two periods, the Industry sector grew by 13.2% and 8.9%, much higher than the national. While the country suffered a slowdown in its economy in 2008, the region’s Manufacturing, Construction and Electricity and Water sectors, grew by 9%. Regional Economy vis-à-vis the Country’s Economy

The region’s economy accounts for 7.3% of GDP. The biggest share is from the NCR

which accounts for 33% of GDP, followed by Region IV-A (11.5%) and Region III (8.3%).

1998

25%

47%28%

Agriculture Industry Services LEGEND:

2008

27%48%

25%

Source: National Statistical Coordination Board, Region VI

The region continues to be a major growth player in Poverty

The benefits of the region’s robust

economic growth significantly helped reduce poverty in Western Visayas. Poverty incidence in Region VI went down from 39.2% in 2003 to 38.6% in 2006. The improvement is due to the focused-targeting of beneficiaries in its anti-poverty programs that are now put in place. Agricultural Production

Western Visayas is still an agriculture-based economy. Even industrial activities are closely

related with agricultural production. The total land area of the region identified as Strategic Agricultural and Fisheries Development Zones is 1,310,481 ha with around 825,603 ha or 63 percent used for agricultural production.

The three leading crops in terms of area cultivated are rice (319,899 ha; 39%), coconut

(123,478 ha; 15%) and sugarcane (111,401 ha; 13%). About 40% of rice lands are located in Iloilo while 80% of sugarcane lands are located in Negros Occidental.

From 1998 to 2008, there were significant increases in the production of major agricultural

crops such as rice, banana, corn and coconut due to the provision of adequate support and extension services. For CY 2008, rice production reached 2.1 million MT, more than double compared to CY 1998 with only 1.04 million MT. Western Visayas contributed 12.6% of the country’s total palay production in CY 2008, placing second to Region II.

Table 2. Production of Major Agricultural Crops, 1998-2008 (in MT)

Region VI 2008

Commodity 2000 2005 Region VI Philippines % Share Region VI Rank

Palay 1,608,337 1,800,820 2,117,598 16,815,548 12.60 2nd Corn 80,340 193,736 350,259 6,928,225 5.06 5th Banana 254,501 286,637 328,171 8,687,623.7 3.78 6th Mango 42,147 61,023 46,421 884,011.25 5.25 7th Coconut 400,903 500,013 482,735 15,319,526.7 3.15 11th Sugarcane 11,465,136 13,072,225 13,770,504 26,601,383.81 51.76 1st

Source: Bureau of Agricultural Statistics Corn production increased significantly in CY 1998-2008 due to intensive promotion of

high yielding varieties as an alternative cash crop for palay. Corn growers also increased due to demands from livestock and food processing industries. Region VI ranks 5th in corn production among all regions in the country.

Figure 2. GRDP, by Region, 2008

Source: National Statistical Coordination Board, Region VI

3 3. 0 1

2. 9 11. 9 5

8. 3 0

1 1. 8 6

2. 7 4 2. 8 0

7. 2 8 7. 1 4

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Region

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hare

Mango is one of the major agricultural crops of the region that is being exported. In CY 2008, Region VI placed 7th in mango production among all regions. Mango production is largely prone to weather conditions affecting the flowering stage of fruit trees. That explains the erratic fluctuation of mango production in the region. On the other hand, banana production has had an increasing trend in CY 1998-2008 placing Region VI sixth among regions in the country.

Region VI is the largest sugarcane

producer and sugar exporter of the country. Over the last ten years, annual sugarcane production ranged between 10-14 million MT. Sugarcane production remained flat during the past decade due primarily to the fluctuation in the price of sugar in the world market. Planters were generally hesitant to expand production due to uncertainties in the demand for sugar and related products in the world ma rket as influenced by World Trade Organization policies and targets.

The increasing interest in biofuels is expected to invigorate the sugar industry and, once

again, return it to its pre-eminent status just like in the ‘50s. Better production machines, processes and the promotion of muscovado (raw sugar) as one of the region’s major export products are expected to rejuvenate the sugar industry. There is a noticeable decrease in livestock production during the past 10 years, except in carabao. Cattle, goat and duck production showed continuing decline in recent years. The decline in cattle production can be attributed to the entry of cheaper beef from other regions and abroad. Demand for goat has also been declining due to taste preferences.

Table 3. Production of Livestock and Poultry, 2000-2008

Region VI 2008 Commodity 2000 2005 Region VI Philippines % Share

Region VI Rank

Carabao 10,882 17,282 19,923 140,423 14.18 1st Cattle 20,263 22,475 18,257 239,156 7.63 5th Goat 8,911 7,655 7,892 78,009 10.11 3rd Swine 121,044 149,091 167,755 1,855,726 9.04 3rd Chicken 79,164 69,677 74,588 1,281,344 5.82 5th Duck 6,550 3,693 2,892 39,206 7.38 4th

Source: Bureau of Agricultural Statistics Swine production steadily increased over a period of 10 years while chicken production

declined. The increase in swine production can be attributed to the increasing demand for pork in the local market. On one hand, the demand for chicken steadily declined due to rising prices of chicken in the local market and the entry of cheap chicken from other regions and from

Figure 3. Sugarcane Production, 1998-2006

Source: Bureau of Agriculture Statistics

02468

10121416

1998 1999 2000 2001 2002 2003 2004 2005 2006

in M

illio

n M

etric

Ton

s

abroad.

Table 4. Fisheries Production, 1998-2008 (in MT)

Region VI 2008 Commodity 1998 2000 2005 Region VI Philippines % Share

Region VI Rank

Commercial 112,824 130,486 114,831 111,313.62 1,226,204.88 9.08 3rd Municipal 125,620 132,838 135,158 139,612.33 1,151,308.73 12.13 2nd Aquaculture 60,115 89,866 132,770 142,066.42 2,407,697.92 5.90 5th Source: Bureau of Agricultural Statistics

There was a noticeable decline in commercial fisheries production the past 10 years. On the

other hand, aquaculture production and municipal fisheries production slowly increased during the same period. It should be noted that aquaculture production has the biggest share in the total production output with an average annual increase of 9 percent for the past 10 years. The decline in commercial production could be attributed to the declining fish catch in traditional fishing grounds in the region, as a result of overexploitation, over-fishing and illegal fishing.

Investments

Based on the DTI Business Name Registration reports, a total of 9,963 firms were registered

in Western Visayas in 2008 compared to only 6,582 firms in 2001. An average growth of 6.6% annually was noted for the past 8 years. Most establishments were registered in the province of Iloilo and Negros Occidental, and were mostly involved in wholesale and retail trading.

Total investment generated by the priority sectors and other assisted sectors in Region VI

amounted to P 56.43 Billion while SEC registered firms recorded investments worth P2.66 Billion.

Table 5. Private Investment for Region VI, 2001 to 2008

2001 2002 2003 2004 2005 2006 2007 2008 Business Name

Registration

Investment (P M) 2,473.6 6,446.5 4,912.6 6,795.9 9,248.1 11,706.8 7,999.8 6,847 No. of Firms 6,582 6,777 8,097 8,639 9,575 8,268 9,170 9,963

SEC Registration

Investment (PM) 140.16 84.79 236.52 223.26 495.21 168.8 294.91 1,021

No. of Firms 811 510 1055 828 898 833 951 483 Source: Department of Trade and Industry and Securities and Exchange Commission, Region VI Small and Medium Enterprises

The past 5 years showed a significant increase in the number of MSMEs in the region. From 2005 to mid-2009, MSMEs grew almost threefold from 700 enterprises to 2,027 enterprises. The bulk of SMEs in the region are agriculture-based.

These include loom weaving, bamboo furniture and furnishings, aquaculture processing,

fruits processing, cut foliage and horticulture. The increase in MSMEs may be attributed to the DTI’s One-Town-One-Product program.

Figure 4. DTI-Assisted MSME 2005-2009

Imports and Exports

The region’s leading exports in 2008 were coal in bulk ($15.26 million), raw cane sugar ($10.8 million), crabmeat (($1.76 million), cane molasses ($655,200) and assorted frozen marine products ($129,951). Aside from coal, the region’s major exports were mostly agriculture products.

On the other hand, imports for the region included wheat, fertilizer, LPG, ethyl alcohol,

second hand cars/boat, medical equipment, and assorted furniture. Visitor Arrivals and Tourist Receipts

Significant increases in

visitor arrivals and tourist receipts were noted from 1998 to 2007. The rapid increase in domestic and foreign visitors could be attributed to the popularity of Boracay Island in Aklan and the increasing access of residents from Metro Manila to Boracay as a result of the Western Nautical Highway and the improvement of the Kalibo and Caticlan airports. Over the same period, tourism activities also significantly increased in Guimaras, Southern Negros and Northern Iloilo.

However, due to the world financial crisis, tourism industry suffered a setback in 2008. The

situation is now slowly improving as the global economy is getting over the recession.

Source: Department of Trade & Industry, Region VI

2,027

985

1,633

964700

0

600

1200

1800

2400

2005 2006 2007 2008 August2009

Nu

mb

er

0500,000

1,000,000

1,500,0002,000,0002,500,000

2001 2002 2003 2004 2005 2006 2007 20080

10

20

30

40

Total Tourist Arrivals Receipts (Billion Pesos)

Figure 5. Visitor Arrivals and Tourist Receipts, 1998-2008

Source: Department of Tourism, Region VI

4. Social Services

Health

Inaccessibility to basic health services and facilities by poor families living in far flung

areas, brought about by inadequate support for devolved health services, are among the factors that contributed to the unstable health status of the people in Region VI.

From 2004 to 2008, the indicators on crude births, crude deaths, infant mortality and

maternal mortality showed fluctuations and minimal improvements.

Table 6. Selected Health Services Indicators, 2004-2008

Indicators 2004 2005 2006 2007 2008 Crude Birth Rate (000 population) 20.16 19.86 18.86 20.15 20.97

Crude Death Rate (000 population) 5.3 5.75 5.78 5.57 5.98

Infant Mortality Rate (000 livebirths) 11.5 11.18 11.18 10.7 10.8

Maternal Mortality Rate (000,000 livebirths) 110.42 77.35 88.67 71.17 73.54

Source: Department of Health, Philippine Statistical Year Book

The leading causes of sickness and death in the region continued to be almost the same for the part five years. Upper respiratory tract infection has been the leading cause of morbidity since 2003, followed by acute lower respiratory tract infection and pneumonia.

Ten Leading Causes of Morbidity Ten Leading Causes of Mortality

1. Upper Respiratory Tract Infection 2. Acute Lower Respiratory Tract Infection &

Pneumonia 3. Hypertension 4. Acute Watery Diarrhea 5. Influenza 6. Bronchitis 7. Injuries 8. Urinary Tract Infection 9. Pulmonary Tuberculosis 10. Parasitism

1. Hypertension and Cardio-Vascular Disease 2. Pneumonia 3. Malignant Neoplasm (Cancer) 4. Injuries / Accidents 5. T B Pulmonary 6. Kidney Diseases 7. Septicemia 8. Cerebro Vascular Accident 9. Diabetes 10. Chronic Obstructive

Health Insurance Coverage

Membership under the Philippine Health Insurance showed an increasing trend from 2007 to 2009. This achievement brings PhilHealth closer to fulfilling its mandate of achieving universal coverage.

The gains in 2009 were from all categories of membership: sponsored, 37%; voluntary/IPP,

13%; government, 10%; private 32%; lifetime members or non-paying members, 32%; and overseas workers, 6%.

The Sponsored Program is a realization of Philhealth’s goal of institutionalizing an

integrated health care financing and delivery mechanism that will ensure accessible, affordable and quality healthcare to all Filipinos, especially the less privileged.

Table 9. PhilHealth Membership by Program, 2007 -2009

2007 2008 2009

Program Number % share

to Total Number % share to Total Number % share

to Total

Sponsored Program 289,856 28% 309,768 26% 559,200 37% Individually Paying Program 141,673 13% 165,836 14% 192,535 13% Employed - Government 142,998 14% 149,976 13% 154,102 10% Employed - Private 382,034 36% 433,457 37% 479,450 32% Non-Paying Member 31,902 3% 36,657 3% 40,620 3% Overseas Filipino Workers 63,302 6% 74,307 6% 83,943 6% TOTAL 1,051,765 100% 1,170,001 100% 1,509,850 100% Increase from 2007 to 2009 458,085 44%

Source: Philippine Health Insurance Corporation, Region VI

Education

The region’s net enrollment ratios at the elementary and secondary levels have been decreasing for the past 5 years. For the same period, drop-out rates at the elementary and secondary levels have not significantly improved. Correspondingly, cohort survival rates (CSR), both at the elementary and secondary levels have also been decreasing.

The decrease in enrollment rates at the elementary and secondary levels and the high drop-

out rates at the secondary level may be attributed to the practice of children, especially in the countryside, to assist in farms or do seasonal jobs to augment family income.

Table 8. Selected Education Indicators, SY 2004-2009

Indicators SY 04-05 SY 06-07 SY 07-08 SY 08-09 Elementary

Net Enrollment Ratio 76.93 71.68 69.76 69.11 Drop out Rate 2.53 2.68 2.43 2.36 Cohort Survival Rate 59.75 62.61 64.72 75.32 Secondary Net Enrollment Ratio 45.59 45.21 44.63 44.52 Drop out Rate 6.67 7.04 6.63 6.91 Cohort Survival Rate 61.97 60.61 62.69 67.9

Source: Department of Education, Western Visayas in Figures

Housing

The provision of housing to poor families showed an upward trend from 2001 to 2008.

Beneficiaries of low-cost housing increased by 35 percent in 2008 while, the socialized housing program benefited 10,548 beneficiaries or an increase of 277 percent from the 2001 figure.

The marked improvement of the housing program in the region could be attributed to the

collaborated efforts of the housing agencies like, NHA, HDMF and HUDCC.

5. Infrastructure and Utilities Power

Although the dependable capacities of the Negros and Panay Grids from 2000 to 2008

appear to be generally stable, a progressive power deficit situation is observed in both grids during the period. With the passage of the Renewable Energy Bill, several private power companies have started putting up clean-energy plants in the region, addressing to a certain degree the need for more power generating plants in the region.

Since the region, particularly, Panay Island, is at the tail end of the Visayas Grid (Cebu-

Negros-Panay-Bohol-Leyte Grid), the region will continue to explore and develop other indigenous and renewable power sources and encourage the development of more power generating plants to ensure reliable power supply.

Table 9. Power Situationer For Negros and Panay Grids, 2000-2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Negros Grid

Dependable Capacity 180.0 - - 143.8 174.8 172.4 180.0 - - 193.0

Demand 135.0 160.0 - 180.0 195.0 191.0 135.0 160.0 - 230.8 Reserve/Deficit 45.0 - - -36.2 -20.2 -18.6 45.0 - - -37.8

Panay Grid Dependable Capacity 39.0 47.8 64.5 98.0 93.0 39.0 - 47.8 179.1

Demand 91.0 145.0 105.2 116.0 111.0 116.0 91.0 145.0 105.2 223.4 Reserve/Deficit -52.0 -57.2 -51.5 -13.0 -23.0 -52.0 - -57.2 -44.3 Source: National Power Corporation, Department of Energy

All the municipalities in the region have been covered by the Rural Electrification Program with the number of energized barangays in the region growing from 3,028 barangays in 2000 to 3,810 barangays in 2009, bringing the barangay energization rate from 79.16% to 99.06%.

Water Resources

The percentage of households with access to potable water or level III water supply facilities rose from 68 percent in 2000 to 93 percent in 2009. In 2008, the MDG target was even exceeded by 43%.

Irrigation development in Region VI made

constant progress from 2000 to 2009 with total service area increasing from 109,969 hectares to 117,845 hectares and percentage of irrigated areas to irrigable areas growing from 38.24 percent to 51.16 percent. While Negros has the largest irrigable lands, Iloilo remains to have the largest irrigated areas. Transportation

The ratio of paved roads to the total national road length in Western Visayas increased from

59.09% in 2000 to 77.84% in 2008. Improvements in the region’s arterial road system during

Table 13. Number of Barangays Energized, 2000-2009

Year No. of Barangays Energized

% of Barangays Energized

2000 3,028 79.16 2001 3,148 81.42 2002 3,314 85.66 2004 3,562 92.07 2005 3,782 98.00 2006 3,758 98.00 2008 3,794 98.42 2009 3,810 99.06

Note: no data for 2003 and 2007 Source: National Electrification Administration

Table 14. Irrigation Development, 2000-2008

Year Coverage (hectares) 2000 109,969 2001 111,394 2002 112,234 2003 114,105 2004 114,768 2005 115,496 2006 115,552 2007 116,570 2008 117,845 2009 117,845

Source: National Irrigation Administration

the last ten years were focused on increasing the region’s road length and upgrading road conditions.

It should be noted, however, that the national road system of the region declined by 118.39

kilometers during the same period because some road sections were abandoned by DPWH from its national road system. These road sections have very low utilization and have become unpassable.

Table 12. Existing National Road Length, by Surface Type, 2000-2009

Year Total Unpaved Bituminous Concrete % of Paved Roads to Total Road Length

2000 2,900.29 1,186.48 964.14 749.67 59.09% 2001 2,934.04 1,082.02 1,005.81 846.21 63.12% 2002 2,935.16 968.60 1,027.31 939.25 67.00% 2003 2,936.70 869.26 2,096.80 71.40% 2004 2,937.07 790.77 1,014.09 1,132.21 73.08% 2006 2,880.10 726.80 955.40 1,197.90 74.76% 2009 2,863.65 598.19 924.80 1,340.56 79.11%

Source: Department of Public Works and Highways

The percentage of permanent bridges to the total length of national bridges in the region, likewise, increased from 82.56 percent in 2000 to 92.04 percent in 2009. However, following the declining trend in the total national road length, the total length of national bridges also dropped by 258.13 lineal meters. Some bridges were also abandoned by DPWH from its bridge system while other bridges were merged into one.

Table 13. Length of National Bridges by Type, (in Lineal Meters), 2000-2009

Year Total Concrete Steel Bailey Timber % of Permanent

Bridges 2000 29,091.15 19,402.97 4,613.72 4,210.76 128.70 82.56% 2001 28,291.87 19,838.28 4,443.92 3,918.87 90.80 85.83% 2002 27,930.05 20,388.94 4,468.81 3,072.31 0.00 89.00% 2003 28,897.00 21,094.81 4,334.55 3,467.64 0.00 88.00% 2004 29,729.50 21,207.06 4,264.07 3,331.45 80.80 85.68% 2006 23,810.10 18,646.80 3,191.40 1,883.90 88.00 91.72% 2009 28,713.34 22,336.54 4,436.04 1,860.76 80.00 93.24%

Source: Department of Public Works and Highways

The number of motor vehicles registered in the region showed a considerable increase during the period from 200,020 vehicles in 2000 to 333,442 vehicles in 2009.

Better economic situation of people working here and abroad, and the continuing

improvement of the road and bridge network account for this.

Aircraft movement in Western Visayas increased by 57.52% from 2004 to 2008. Similarly,

passenger traffic grew by 57.83% during the period. Cargo traffic, however, rose by only 1.12%.

Figure 7. Aircraft, Passenger and Cargo Traffic, 2004-2008

Two airports of international standards classified as principal airports/ class 1 are now operating in the region: the New Iloilo Airport in Sta. Barbara-Cabatuan, Iloilo and the New Bacolod Airport in Silay City. The Kalibo Airport in Aklan was recently classified as an international airport. There are two more principal airports: Roxas Airport in Capiz (Class 1) and the Godofredo Ramos (Caticlan) Airport in Malay, Aklan (Class 2). In Antique, a community airport, the Evelio Javier Airport, is serving the province.

Sea passenger traffic, on the other

hand, dropped by 13.07% while sea cargo traffic significantly grew by 65.09% during the period. The decline in sea passenger traffic may be attributed to more people availing of cheaper airfares brought about by the stiff competition of airline companies.

Communication

Access to information technology was made possible with the increase in the number of local exchange carriers (LECs) providing services to the different cities and municipalities in the region from 115 LECs in 2004 to 151 LECs in 2009.

Telephone load density in the region showed an erratic trend during the period and a general

decline from 2.5 per 100 population in 2000 to 1.8 in 2009. This may be explained by the growth of wireless and broadband technologies, resulting to more people availing of the Cellular Mobile Telephone Services (CMTS). To date, there are 887 CMTS stations in the region.

6. Governance and Security

Tax Collection Performance

2,025,725 2,136,508 2,511,218 2,938,268 3,197,154

26,442,309 25,880,424 26,046,343 26,915,843 26,737,413

33,26437,487

30,173

43,666

52,398

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2004 2005 2006 2007 20080

10,000

20,000

30,000

40,000

50,000

60,000

Passenger Cargo (in kilos) Aircarft

Source: Civil Aviation Authority of the Philippines

Table 17. Passenger and Cargo Traffic, 2000-2009

Source: PPA- Iloilo and Pulupandan

Year Passenger Cargo (MT) 2004 6,077,482 6,743,816 2005 6,084,623 8,036,688 2006 7,032,821 9,329,592 2007 - - 2008 5,283,354 11,133,468

The actual tax collection performance of the region from CY2001-CY2009 posted an annual average growth rate of 7.43%. Among the types of taxes, the highest percentage share is registered by the Value Added Tax with an average of 12.1% while income tax contributed an average 5.5%.

The actual tax collection in 2008-2009 dropped at the negative level because of the damages

wrought by natural calamities like Typhoon Frank which lowered the production of companies, considered as the top taxpayers of the region.

Also, there were a considerable number of small businesses that closed because of the

opening of big establishments, which remits their taxes not in the region, but in Metro Manila.

Figure 8. Tax Collection Growth Rate, 2001-2009

LGU Income and Expenditures

Based on the distribution of LGUs income source from CY2004 to CY2008, there is a need for LGUs to improve their locally-sourced income in view of the big difference in the share of locally-sourced income with that from external sources. Although locally-sourced incomes showed an increasing trend, it still showed the continuous dependency of the LGUs on external sources, especially on the internal revenue allotment. However, there have been considerable programs implemented by the LGUs in intensifying tax collection, including computerization of their finance departments and in codification of their taxes.

Figure 9. Distribution of LGUs Income Source, CY 2004-CY 2008

Source: Bureau of Internal Revenue, Region No. 11-Iloilo City

-140.00-120.00-100.00-80.00-60.00-40.00-20.00

0.0020.0040.0060.00

Perc

enta

ge

Actua l Co lle c tio n: 9.10 2.84 13.85 12.58 4.14 13.64 14.20 -10.88 7.43

Inco me Tax 10.44 0.10 10.41 12.95 0.59 11.09 6.23 -7.95 5.48

Value Adde d Ta x 6.19 13.17 18.18 7.19 19.52 16.61 17.71 -1.63 12.12

P erce ntage Tax -14.95 16.99 20.56 17.20 -24.03 0.01 5.95 6.05 3.47

Exc is e -74.75 -5.76 9.48 -23.68

Others 20.10 -28.51 24.38 26.23 -26.26 30.05 46.75 -118.35 -3.20

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Ave

There was an increase in expenditures of LGUs from CY2004 to CY2008. In terms of

distribution, about 43 percent of expenditures went to general public services. Aside from other purposes (18%), expenses were incurred in economic services (17%), followed by health, nutrition and population control (10%) and education, culture and sports (6%).

This reflects LGU’s priority on implementing programs and projects in their locality. With

this distribution, it showed that lesser attention was given to sectors such as social services and welfare (3%), housing and community development (1%). Least priority was given to labor and employment which only account for less than 1 percent of LGU’s expenditure.

Figure 10. Distribution of LGU Expenditure for CY 2004-2008

Crime Solution Efficiency

The region strives to become a business and investment friendly region by 2010. Thus, peace and order situation needs to be improved. Crime volume averaged 3,443 from 2001 to 2008 with a crime solution efficiency of 94.97% during the same period. This might be attributed to the improvement in the police to population ratio from 1:1,047 in 2001 to 1:939 in 2008. This also improved police visibility from 84.8% in 2003 to 96.2% in 2008. The

-

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

External Sources 10,625,017.42 12,310,778.70 13,038,295.58 13,621,101.64 14,712,145.31

Local Sources 2,085,109.28 2,266,296.29 2,449,552.46 2,672,603.74 3,937,027.53

2004 2005 2006 2007 2008

Amount

Source: Bureau of Local Government Finance, Region VI

Gene ra l P ublic Se rvices

43%

Educa tio n, Culture and

Spo rts / Manpo wer

Deve lo pment6%

Health, Nutritio n and P o pula tio n

Co ntro l10%

Labo r & Emplo yment

0%

Ho us ing & Co mmunity

Deve lo pment1%

So c ia l Security/So c ia l

Se rvices & Welfare

3%

Eco no mic Se rvice s

17%

Debt Se rvic ing2%

Other P urpo s es18%

Source: Bureau of Local Government Finance, Region VI

distribution of PNP personnel was based on the 90%-10% policy where 90% shall be in the field while 10% do office work.

B. DESIRED SCENARIO The increasing trend in the use of renewable energy due to growing concerns on global

warming augurs well for the region’s on the sugar industry. The increasing demand for ethanol and other biofuels is expected to enhance productivity in the sugar industry, primarily in the provinces of Negros Occidental, Iloilo and Capiz. The resurgence of the sugar industry in these three provinces will significantly boost their local economy.

The region’s development will remain focused on its major strategic thrusts in agri-

industrial development and tourism development. In agri-industrial development, priority will be given to the production of major agricultural crops such as rice, sugarcane, mango, corn, coconut and cashew, while support to the transformation of these products into processed goods for domestic and export markets will be given priority. Over time, footloose industries will emerge and small and medium enterprises will flourish and thrive.

The tourism industry will remain vibrant and dynamic in the next decade, given the Super

Region Development Strategy of the national government which identifies tourism as the major thrust of Central Philippines. Aside from Boracay Island in Malay, Aklan, other major tourism destinations will be promoted. These include the eco-tourism and diving sites in Southern Negros, southern part of Guimaras, northern part of Iloilo, western side of Antique and the eastern seaboard of Capiz. The white sand beaches and alluring natural attractions of these areas will be promoted. Cultural and religious tourism will also be intensified with the promotion of cultural and religious sites in Northern and Central Negros, Bacolod City, Iloilo City, Roxas City and Southern Iloilo. Annual festivals such as the Dinagyang in Iloilo City, Ati-Atihan in Aklan, Masskara in Bacolod City and Pintados in Passi City, Iloilo will be promoted and marketed to other countries.

Parallel with the growth of the agri-industry and tourism sectors will be the growth and

expansion of the business process outsourcing and information technology sectors. Business outsourcing jobs will grow by leaps and bounds in the major urban areas of the region, particularly in Bacolod and Iloilo cities. Iloilo and Guimaras will become the next BPO hubs in the country. Knowledge-based jobs will expand exponentially while ICT industries will increase.

C. STRATEGIC INTERVENTIONS

The region’s strategic focus will be towards realizing its role as front runner in biofuels and renewable energy mix in support of the development of agri-industries and tourism. Strategic interventions are as follows:

1. Entice More Investments in Biofuels and Renewable Energy Mix

The government will enhance its supportive role to the private sector in power generation

and distribution. Among the major projects being proposed to augment the power needs of the region include Timbaban Hydro Electric Project in Aklan (P4.8 Billion), Igbolo Mini-Hydro Project in Iloilo, and the Negros-Panay Interconnection Uprating Project (P3.34 Billion).

Currently, the region is experiencing a frenzy in the submission of proposals for the

construction of biofuel and renewable energy projects. Among the proposals include the following:

Wind Power

Trans-Asia Oil Renewable Energy Corp. (TAREC)

54MW San Lorenzo Wind Farm (US$100-million investment) Other sites applied by TAREC with DOE: 10MW Ibajay Wind Farm 10MW Malay Wind Farm 7MW Anini-y Wind Farm 12MW Btac. Nuevo Wind Farm 10MW Dumangas Wind Farm 9MW San Joaquin Wind Farm 8MW Dingle Wind Farm 17MW Cauayan Wind Farm 6MW-EB Magalona Wind Farm

San Lorenzo, Guimaras

Aklan Aklan Antique Iloilo Iloilo Iloilo Ioilo Neg. Occ. Neg. Occ.

FS completed; Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed

Smith Bell Group of Companies and Global Renewable Energy Partners of Denmark/ San Carlos Wind Power Corp.

30MW San Carlos Wind Farm San Carlos City Neg. Occidental

Proposed

Hydro Power

Sunwest Water & Electric Company, Inc. (SUWECO)

15MW Timbaban River 8MW Dumalaylay River 8MW Maninila River 4MW Dalanas River 3MW Tibiao River 6.5MW Panay River 4MW Igbolo River 3MW Tarao River 10MW Malogo River

Madalag, Aklan Libacao, Aklan Sibalom, Antique Barbasa, Antique Tibiao, Antique Tapaz, Capiz Igbaras, Iloilo Igbaras, Iloilo Silay City, Neg Occ

Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed

Oriental Energy & Power Generation Company

18MW Madalag Hydro Power Madalag, Aklan Proposed (P2.5B-investment)

JBIC STEP/ Japan External Trade Organization

23.5MW Timbaban Hydro Power

Madalag, Aklan Not Yet Started; House Bill 3679 passed on 3rd reading which authorizes the establishment of the Timbaban hydropower project within the Aklan River Watershed Forest Reserve

Petroxy Corp 80MW Aklan River Hydro Libacao, Aklan Proposed; Talks with LGU-Libacao had started

Alcantara and Sons and California Energy

70MW Bago River Hydro Neg. Occ. Shown serious interest

Sagay Water District

100kW Minapasuk Micro Hydro

Neg. Occ. Proposed

ADB Grant 142kW Mambukal Micro Hydro Hiyang-Hiyang Micro Hydro

Murcia, Neg. Occ. Cadiz City, Neg. Occ.

Proposed

Asea One Power Corp.

6MW Biomass Plant in N. Antique

Antique

Asea One Power Corp.

Five other similar plants in Negros (50 MW installed capacity)

Negros Proposed

Green Power Panay Phils, Inc.

17MW Biomass Plant embedded in CAPELCO

Capiz on-going site prep

SCBI & other investors

12-15MW Biomass Plant San Carlos City Eco-Zone

Proposed (1.5B-investment)

Bio-Ethanol

JG Summit Holdings Bioethanol Plant (30million liters of bioethanol annual capacity)

Kabankalan City, Neg. Occ.

Proposed (P0.8B)

Negros Green Resources Inc.

Bioethanol Plant with 120,000 liters-daily production capacity

Neg. Occ. Proposed (P0.98B investment)

Canlaon Alcogreen Inc.

Bioethanol Plant with 60,000 liters-daily production capacity

Neg. Occ. Proposed (P0.75B investment)

JG Summit Holdings Bioethanol Plant with 100,000 liters-daily production capacity

Proposed (P0.742B investment)

Biodiesel

BizMinded Concepts $55 million refinery plant for bio-diesel production

Panay

On the other hand, potable water supply systems will be installed in urbanizing areas of the region. Adequate water supply will be assured to meet the growing demands of the increasing domestic and commercial users.

2. Enhance Agricultural Productivity and Support the Growth of Agri-Industries

The region’s priority economic activity will remain focused on agri-industries. Export

winning industries such as crabmeat, frozen marine products and sugar products and by-products will be supported.

Consistent with the government’s thrusts on food security, rice production will be increased

and irrigated and irrigable lands will be protected from conversion to other uses. Given the rich fertile soil and good climatic conditions of the region, rice production will be expanded.

3. Revive the Sugar Industry

Sugarcane production will be more vibrant with the increasing demand for “green fuel” in

the local and foreign markets. Ethanol production will be supported and given impetus. The region shall remain as the leading sugar producer and also emerge as the leading ethanol producer in the country. DOST’s interventions to upgrade the technology in muscovado production among existing mills and promoting market-driven quality production for new mills, coupled with product packaging will further invigorate the region’s sugar industry.

4. Strengthen Backward and Forward Linkages of Major Agri-industries

Corn production will be fully supported to cater to the growing swine industry in the region.

Production areas will be expanded for food and feed production through inputs and marketing programs of the Department of Agriculture and Department of Agrarian Reform.

Other agricultural crops, especially fruits, vegetables and fiber (abaca and piña) that can be

processed into high-value goods will also be supported through the One-Town, One Product strategy and assisted under the DTI-SMEDSEP.

Product quality and packaging improvements will be undertaken through tripartite

cooperation among the NGOs, the LGU and the Department of Science and Technology. Agricultural crops with potentials for bio-fuels and livestock feeds production will also be

promoted and provided adequate technical support. These include: cassava, coconut, sorghum, or even algae culture in the region’s vast farms.

5. Enhance the Growth of the Tourism Industry

Parallel with the development of agri-industries will be the growth and expansion of the

tourism industry. Indirectly, tourism activities affect land use activities in a locality, particularly in the demand for housing and infrastructure support and utilities. It impacts on protection areas like forest, mangroves and others. Site development will be sensitive to other land use need of

local governments. Existing and potential tourism areas will be identified and delineated in local plans and their current economic performance vis-à-vis social and environmental impacts will be assessed. This is to determine areas where tourism development can be pursued further or discouraged, and to provide infrastructure support such as rest areas, accommodation facilities along tourism corridors, and other recreation amenities.

6. Provide Facilities and Infrastructure Support to Agriculture Production

The provision of post-harvest facilities for rice and other major crops will be supported.

Facilities and utilities catering to agri-industries will be strategically located in areas with known high levels of production and productivity.

Likewise, expansion and rehabilitation of irrigation facilities will be implemented to boost rice production and productivity. The Bago River Irrigation System will be rehabilitated and improved while the Southern Philippines Irrigation Sector project: Magballo-Balicotoc-Canlamay Integrated Irrigation Sub-Project will be implemented. 7. Improve the Intermodal Transport Network

To promote more diversified tourism itineraries and ensure accessibility to tourism sites,

integrated inter-modal transport systems will be developed. Key road links along the Western Nautical Highway will be improved to support inter and intra-regional linkages. These include:

San Enrique-Vallehermoso Road (La Castellana-Canlaon Section) in Negros Occidental – P368 M Kabankalan-Basay Road (Hinobaan-Basay Section) in Negros Occidental – P175.35 M Rehabilitation of San Jose-Patnongon Road in Antique – P140 M Iloilo East-West Road (Concepcion-Sara for PCCP) Roxas City Circumferential Road in Capiz – P350 M Maayon-Cuartero Junction Iloilo-Capiz Road – P362 M Various urgent bridge construction projects in Iloilo, Antique and Negros Occidental Isabela-Sikatuna (Boundary) Road Improvement & Construction in Negros Occidental – P397 M Concreting of the Access Road leading to Sibunag Port Bridges for Prosperity Acceleration Projects in Antique, Aklan, Capiz, Iloilo & Negros Occidental Panay East-West Link Road Project in Iloilo to Antique – P2.042 B. Likewise, expansion and upgrading of port facilities especially roll on-roll off (RORO) will

continuously be pursued in areas along the Western Nautical Highway, especially the Iloilo-Guimaras-Negros routes. This will include the improvement of Barangay Ortiz Wharf in Iloilo; the Parola Pump Boat Terminal (Rotary Park-Iloilo-Guimaras Wharf) in Iloilo City; and Jordan-Buenavista Integrated Port System in Guimaras.

Intermodal transport networks connecting production areas with processing centers, and

processing centers with markets, will be identified and implemented to reduce transport costs of agricultural and industrial products. Currently being proposed is the rehabilitation of Panay Railway System from Iloilo to Capiz in the amount of P31 Billion. Aside from agri-industries and tourism, the region will also provide support to small and medium enterprises, business process outsourcing companies, IT industries, among others.

7. Support the Development and Expansion of SMEs

SME development in the region will give more focus on export winners such as loomwoven products, bamboo furniture and furnishings, giftwares and holiday décors, aquaculture and processed foods. Other export industries being supported are muscovado, horticulture, mango and cut foliage. The region has developed niches for cut foliage in Japan, Taiwan and Australia; fresh mangoes in the USA, and processed mangoes and aquaculture products in many other countries.

9. Develop Iloilo, Negros and Guimaras as the Next BPO Hubs

Business process outsourcing (BPO) companies will be promoted in major urban hubs and

in the Province of Guimaras. The region’s high literacy and excellent proficiency in foreign languages augurs well for these types of businesses. In the next 10 years, critical infrastructure support for the digital network will be encouraged and appropriate incentives will be provided by local governments to ensure that these companies will thrive in the region.

Private sector initiatives in communications industry will also be supported in view of

expanding IT and business process outsourcing and off-shoring industries. These industries will not thrive unless critical public infrastructures and social delivery services are in place. Over the next 10 years, the government will focus on providing sufficient public infrastructure to encourage the development and expansion of these emerging industries.

10. Improve Access to Foreign Markets and other National Destinations

With the construction of two airports of international standards in Iloilo and Kalibo, Aklan,

the upgrading of existing airports in terms of navigational facilities will be given priority. Additional airports being proposed include the San Carlos City Community Airport (P100 Million) and the Kabankalan Airport (P757 Million), both in Negros Occidental, as well as, the Caticlan Airport (P2.5 Billion) in Aklan.

11. Strengthen the Flood Control Systems

During the next decade, significant major flood control development projects will be

vigorously pursued. Flood control facilities that will be supported are the Iloilo City Flood Control and Environmental Infrastructure Project (Stage 2) in Iloilo City (P1.325 Billion) and the Panay River Basin Flood Control Project in Capiz (P4.5 Billion). In Negros Occidental, there are two flood control projects that will be pursued: Bacolod Flood Control Project and Ilog-Hilabangan Flood Control Project.

12. Improve the Delivery of Basic Social Services

Two sanitary landfills in Iloilo City and Bacolod City will be implemented. Material

recovery facilities (MRFs) will be installed in all barangays of the region. Local environmental monitoring bodies will be strengthened to monitor compliance with environmental laws.

Education and health facilities and services will also be improved vis-à-vis domestic and industrial demands. Curricular adjustments in the formal education sector under DepED and CHED will be linked with industry-led thrusts in technical-vocational courses under TESDA and DOLE. Hospital facilities and services will be improved to meet first world standards. Medical tourism will be supported and given incentives to encourage foreign tourists to visit the region. Greater effort will also be made on improving health systems under the FOURmula ONE program of DOH to firmly address health and nutrition problems especially among poor households.

NEDA REGION VI OFFICE OF THE REGIONAL DIRECTOR

RD Ro-Ann A. Bacal OIC-ARD Nicholas B. Rivas, Jr. Nelly P. Sustiguer Mary Ann L. Brotarlo

PLAN AND POLICY FORMULATION DIVISION

Atty. Raul S. Anlocotan Ma. Lourdes B. Miado Manuel Luis D. Dionio Ma. Leah L. Letrero Elizabeth J. Bugna Chrstinne Anne P. Gaitana

PROJECT DEVELOPMENT, INVESTIMENT PROGRAMMING AND BUDGETING DIVISION

Engr. Gilbero A. Altura Ma. Teresa G. Guadalupe Melinda T. Jamelo Melvin V. Madriguera Yvette G. Batacandolo Ma. Solita O. Lequillo

PROJECT MONITORING AND EVALUATION DIVISION

Erlinda B. Chiu Alexis C. Prieto Othelo E. Derecho Alexander O. Aquio Danilo B. Molato

KNOWLEDGE MANAGEMENT DIVISION

Estela F. Paredes Cynthia C. Lumampao Rene A. Ledesma Ma. Isabel B. Blancia Joyalita B. Tigres August Melody Andong

OPERATIONS DIVISION

Ingrid L. Magno Anthony A. Borbon Gina A. Sillorin Reynaldo C. Deopido Antonio C. Villanueva Melinda F. Narvaez Sandra D. Serguino Ronie A. Demonteverde Erwin L. Francisco Gregorio E. Sierra Francis John C. Palabrica Romeo C. Cabayao Ismael A. Dacula, Jr. Larry P. Jalando-on Gary T. Quilantang Rodney A. Gucana Joselito S. Gatuteo