Local and Regional Economic Development in Leyte Province
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Local and Regional Economic Development in Leyte Province Local and Regional Economic Development in Leyte Province Document Transcript

  • Project No. 01.2467.7-001.00 Small and Medium Enterprise Development for Sustainable Employment Program (SMEDSEP)COOPERATIONRepublic of the Philippines Federal Republic of Germany Local and Regional Economic Development in Leyte Province: Report on the Second Rapid Appraisal Mission (Baybay, Palompon, Carigara) March 2005
  • Prepared/Written by:Rolf SpeitLRED ConsultantRolfSpeit@web.dePublished by:The Small and Medium Enterprise Development forSustainable Employment Program (SMEDSEP)A DTI-TESDA-GTZ Program10th Floor, German Development Center,PDCP Bank Centre Building, V.A. Rufino cor. L.P. Leviste Streets,Salcedo Village, Makati Citywww.smedsep.ph | smedsep@mozcom.comMs. Martina Vahlhaus, Program ManagerPrinted on:April 2005 - Makati City, Philippines
  • Small and Medium Enterprise Development for Sustainable Employment Program (SMEDSEP) German-Philippine Technical Cooperation Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) Local and Regional Economic Development in Leyte Province:Report on the Second Rapid Appraisal Mission (Baybay, Palompon, Carigara) March 2005 Rolf Speit
  • TABLE OF CONTENTSABBREVIATIONS II1 EXECUTIVE SUMMARY 32 INTRODUCTION 53 FINDINGS OF THE FOLLOW-UP VISIT TO ORMOC 74 FINDINGS OF THE APPRAISAL TO BAYBAY, PALOMPON AND CARIGARA 115 ACTION PLANS AND COOPERATION AMONG GTZ- PROGRAMS 156 LOGFRAME AND IMPACT MONITORING 18ANNEXES 21 I
  • ABBREVIATIONS BDS Business Development Services BSO Business Service Organizations CARP Comprehensive Agrarian Reform Program CIDA Canadian International Development Agency DA Department of Agriculture DAR Department of Agrarian Reform DENR Department of Natural Resources DST Department of Science and Technology DTI Department of Trade and Industry GTZ Deutsche Gesellschaft für Technische Zusammenarbeit LGU Local Government Unit LRED Local and Regional Economic Development LSU Leyte State University MW Mega Watts NGO Non-governmental Organization OCCI Ormoc Chamber of Commerce and Industry PACCI Palompon Community Multi-Purpose Coopera- tive PIT Palompon Institute of Technology SMEDSEP Small and Medium Enterprise Development for Sustainable Employment Program TESDA Technical Education and Skills Development Authority II
  • 1 EXECUTIVE SUMMARYThis report summarizes the results of a short-term consultancy conductedon behalf of the Small and Medium Enterprise Development for SustainableEmployment Program (SMEDSEP) between 22nd January and 16th Febru-ary 2005. The first purpose of the assignment was to do a brief follow-up onthe implementation of a LRED action plan defined as a result of a preced-ing mission to Ormoc in October 2004. The second purpose was to conducta series of rapid economic appraisals in the municipalities of Baybay,Palompon and Carigara and to draft economic action plans in each of theseareas. This was part of the extension of the LRED – approach within LeyteProvince.The findings are primarily based on semi-structured interviews with localresource persons and companies. The former included the Mayors of eachof the municipalities studied, representatives from the municipal administra-tions, local legislative (Sangguniang Bayan), business service organiza-tions and NGOs (co-operatives).The follow-up in Ormoc demonstrated, that action plan implementation lagsbehind expectations. Chapter three explores some of the possible reasonsfor this. Nevertheless, some achievements, such as the integration of theplan drafted in the LRED-workshop into a more comprehensive SMED-Council plan, the designation of the City Planning and Development Coor-dinator as point person for the LRED – initiative and the launching of awebsite for investment promotion purposes were noted. However, the gen-eral impression is that the process in Ormoc needs some inspiration fromSMEDSEP-LRED in order to be accelerated.With regard to the rapid appraisal of the economic potential of the munici-palities of Baybay, Palompon and Carigara (see chapter four), it can beconcluded that all of them provide potential for a successful application ofthe LRED – approach. Baybay is experiencing dynamic growth and Palom-pon as well as Carigara are recording moderate growth rates. All of themdispose of dynamic entrepreneurs in different fields of economic activity.There are still untapped natural resources and the example of Palomponshows that even coastal marine resources can be restored. The infrastruc-ture generally allows for an expansion of entrepreneurial activities. Thelocal administrations were active in creating an environment conducive forbusiness, with the LGU of Baybay being the most straightforward and pro-active among the three in this regard. Notwithstanding these efforts, unem-ployment is on the rise in all municipalities, exerting considerable pressuretowards more pronounced and systematic local economic planning andimplementation. In terms of interaction between LGU, entrepreneurs andother representatives of the civil society, all of them provide a fertile groundfor application of the LRED – approach.Based on these conclusions action plans were drafted by local stake-holders in the three local areas (see chapter five). Their fields of interven-tion are partly geared towards promoting business and investments directly(e.g. through developing tourism, diversifying use of coconuts and improv-ing conservation and packaging of delicacies) and partly towards improving 3
  • the institutional environment (e.g. systematic investment promotion andeconomic planning). The latter is expected to contribute to employment andincome generation too by making institutions work more effectively whenhandling economic affairs. These fields of intervention served as point ofdeparture for defining potentials for cooperation among GTZ – Programsand Projects with regard to LRED in Leyte. As a debriefing meeting held inManila on February 16th demonstrated, there is a lot of common groundbetween GTZ-LIP and SMEDSEP-LRED and therefore some broad lines ofjoint action were agreed upon.Finally, the logframe of the sub-component LRED in Leyte was revised (seechapter 6) taking into consideration the need to “harmonize” logframe andimpact monitoring terminology and to match some indicators with GTZ –requirements (esp. the use of baseline data). 4
  • 2 INTRODUCTIONThis report summarizes the results of a short-term consultancy conductedon behalf of the Small and Medium Enterprise Development for SustainableEmployment Program (SMEDSEP), which is jointly implemented by DTIand TESDA on the Philippine and GTZ and GFA-Management on the Ger-man side. The program comprises four components, namely enabling envi-ronment (component one), business development services/BDS (compo-nent two), financial services (component three) and demand-driven training(component four). This assignment was conducted under the auspices ofcomponent two and was closely coordinated with component one. The pro-gram is regionally based in three provinces of the Visayas, namely NegrosOccidental, Cebu and Leyte.Prior to this assignment, a mission was conducted in October 2004 in orderto inquire into the conduciveness of applying the local and regional eco-nomic development (LRED) approach in the Province of Leyte. Rapid ap-praisals including validation workshops with relevant stakeholders wereconducted in the two largest urban centres of the Province, namely Taclo-ban (the regional capital) and Ormoc. In economic terms, both cities pro-vided ample economic opportunities to pilot such an approach; in institu-tional terms, however, it was deemed more appropriate to commence withOrmoc and put activities in Tacloban on hold. In order to expand spatialcoverage of the approach and not depend exclusively on just a single localarea (Ormoc), it was decided to extend it to other, smaller municipalities inLeyte.Taking into account these considerations, the objectives of the assignment(see terms of reference in annex 1) consisted in follow-up visits to relevantstakeholders in Ormoc and the conduct of rapid economic appraisal mis-sions to the municipalities of Baybay, Palompon and Carigara. Their selec-tion was the result of a ranking done by 11 raters from DTI, NEDA andTESDA on a number of criteria such as the perceived dynamism of theLGU and their economic potential. Out of a long list of 20 municipalities DTIpresented a short list of six local areas, proposing the first three of them(Baybay, Palo, Bato) for inclusion in the appraisal mission. After a series ofconsultations with other interested parties (GTZ’s Leyte Island Program andthe author of this report), SMEDSEP finally chose the above mentionedareas. Their selection represents a compromise between the ranking (all ofthem were among the first six) and spatial (all of them represent differentdistricts) considerations. Apart from this, easy access from Ormoc wasanother criterion.In the week prior to the commencement of the assignment (17th to 21stJanuary 2005) DTI Provincial Director, Mr. Desidério Belas, and the newlyappointed LRED – Coordinator of SMEDSEP, Ms. Gloria Adapon, con-ducted a preparation mission in order to brief the LGUs on the upcomingrapid appraisal, its objectives and methodology. More specifically, theyasked the LGUs for support in scheduling a program for interviews withresource persons and entrepreneurs of their respective localities. 5
  • After a briefing with the SMEDSEP – team on the 22nd January, the interna-tional consultant and the LRED – Coordinator went to Ormoc for follow-upmeetings with stakeholders in the local LRED – process (24th January). Onthe same day, they proceeded to Baybay in order to conduct the rapid ap-praisal. Their field work lasted from 25th to 27th January, followed by a vali-dation and action planning workshop on the 28th January. Succeeding fieldtrips were undertaken to Palompon from 31st January to 3rd February and toCarigara from 4th to 8th February. The author of this report spent the 9thFebruary in Ormoc to discuss subsequent activities to this assignment withthe LRED – Coordinator and the 10th to 15th February in Cebu for finaliza-tion of the workshop documentations and report writing. On the 16th Febru-ary a debriefing at GTZ headquarters in Manila followed focusing primarilyon possibilities of cooperation with other GTZ – program within the LRED –initiative.The appraisal results are derived from discussions with the Hon. Mayor ofBaybay, Jose Carlos Cari, the Hon. Mayor of Palompon, Marcelo Oñateand the Hon. Mayor of Carigara, Anlie G. Apostol, members of the Sang-guniang Bayan, officers of the LGU and representatives with public educa-tion institutions such as the LSU and the PIT. On the private side, inter-views were conducted with owners and managers of micro, small and me-dium – sized companies, banks, micro-finance providers and multi-purposecooperatives (the latter often prioritizing financial intermediation). In Bay-bay, the team met with a total of 21 respondents, of which 11 representedthe public and 10 the private sector. The respective figures for Palomponare 22 (11/11) and for Carigara 17 (5/12). The number of participants in thevalidation and action planning workshops amounted to 26 in Baybay (14public/12 private sector), 17 in Palompon (5/12) and 25 in Carigara (11/14).The consultant would like to express his gratitude to the DTI – ProvincialOffice and the LRED – Coordinator for their very good preparation and ac-companiment, SMEDSEP’s component manager for his institutional guid-ance and his tireless efforts to turn LRED in Leyte into a success, the re-spondents for their time and effort spent during our discussions and theplanning officers for their excellent fellowship during the field trips. Manythanks to all of them! 6
  • 3 FINDINGS OF THE FOLLOW-UP VISIT TO ORMOCThe principal task of the follow-up visit to Ormoc consisted in an update ofthe action plan implementation with major stakeholders of the local LRED –initiative (LGU, AFFIRE and OCCI). As the following table suggests, only afew activities have actually been carried out. One of these is the integrationof the LRED action plan into a more comprehensive plan of activities of thelocal SMED Council. The LRED action plan is now “legitimized” and hasbecome official part of the local community’s efforts towards promotion ofthe local economy.The reasons for slow action plan implementation are most probably thefollowing: ! There was a certain over-optimism on part of the participants and fa- cilitators of the workshop in October 2004 with regard to the “doability” of the activities. ! Some stakeholders changed their minds with regard to certain issues. For instance, AFFIRE does momentarily not prioritize the introduction of warehousing and cold storage facilities anymore but has ventured into low-cost pharmacy instead. ! The institutional set-up of the LRED – initiative in Ormoc was not clear enough. Until recently, there was no one officially designated as “point person” on part of the LGU and also no permanent liaison person on SMEDSEP’s side, which resulted in a rather diffuse distribution of re- sponsibilities. ! The fact that the action planning in October 2004 did not involve any LGU representative may also have contributed to the relatively slow start in Ormoc.In the meantime, some actions were taken to put the LRED – initiative inOrmoc on more solid ground: In January 2005 SMEDSEP contracted alocal coordinator based in Ormoc and the LGU appointed the City Planningand Development Coordinator as point person for the LRED – initiative.Furthermore, some of the activities finally happened to be implemented.From the point of view of the author of this report, it is necessary to accel-erate action plan implementation in order to build confidence among localstakeholders in the LRED - approach. Most likely, in these still earlystages, speeding up the process requires an active involvement ofSMEDSEP. Activities to start with could be the facilitation of a focus groupdiscussion on the economic viability of the introduction of cold storage fa-cilities (proposed by AFFIRE), funding capacity building workshops forOCCI either directly or by linking the chamber to CIDA’s Pearl 2 projectand supporting DTI in the preparation of information material on powerpricing. However, balancing the need for faster implementation with thelow-key and demand oriented nature of the LRED approach continues tobe the major challenge in Ormoc. 7
  • LRED Action Plan Ormoc Field of interven- Who? When? Status as per mid Feb-tion/steps for implemen- ruary 2005 tation1. Introduction of cold " AFFIRE has put itsstorage/ warehousing activities with regardfacilities to warehousing on hold. One reason1.1 Project proposal AFFIRE By Nov. 2004 for this is that they1.2 Presentation of project Ormoc Nov. to Dec. ventured into theproposal to SMED - council Chamber of 2004 pharmacy business Commerce, (low cost generica DTI, drugs), a project AFFIRE, supported by GTZ market ven- and KfW. dors, pro- They are proposing ducers to conduct a focus group discussion in1.3 Business plan prepara- AFFIRE, Dec. to Jan. order to collect in-tion DTI, CASO 2005 formation on the1.4 Presentation of busi- AFFIRE, Jan. during economic feasibilityness plan to SMED – DTI, CASO, council meet- of warehousing/coldCouncil, LGU SMEDSEP- ing storage. LRED1.5 Project implementation AFFIRE, February 05 DTI, CASO, to Dec. 05 SMEDSEP- LRED2. Initiate integrated ef- + The action plan re-fort to address Ormoc’s sulting from theeconomic problems LRED – workshop conducted on 22nd2.1 Levelling off- seminar/ Ormoc Nov. 2004 October 2004 gotworkshop on Ormoc’s eco- Chamber of fully integrated intonomic problems and ef- Commerce, the SMED Council’sforts. DTI, LGU, more comprehen- AFFIRE, sive plan of action. SMEDSEP- LRED " According to stake- holders, the facilita-2.2 Output presentation to Ormoc Jan. 2005 tion of SMED Coun-SMED - council Chamber of cil workshop did not Commerce, meet expectations. DTI, LGU, AFFIRE, SMEDSEP- LRED3. Strengthen private " No activity in thissector associations and field carried out sochambers far. 8
  • LRED Action Plan Ormoc Field of interven- Who? When? Status as per mid Feb-tion/steps for implemen- ruary 2005 tation3.1 Identification of stake- Ormoc Nov. 2004holders (output of the Chamber ofseminar/workshop) Commerce, DTI, LGU, AFFIRE, SMEDSEP- LRED3.2 Workshop on SWOT/ Ormoc Dec.balanced scorecard on the Chamber of 2004/Jan.above stakeholders Commerce, 2005 DTI, LGU, AFFIRE, SMEDSEP- LRED3.3 Implementation of ac- Ormoc Feb. 2005tion plan of the above Chamber ofworkshop on Commerce,SWOT/balanced scorecard DTI, LGU, AFFIRE, SMEDSEP- LRED4. Gathering of informa- " No activity carriedtion on power price fixa- out so far. OCCItion and lobbying for seems less enthusi-lower power prices astic to address this issue.4.1 Access the study of RPOC for OngoingRPOC to include royalties Region 8enjoyed by Ormoc andKananga to be extended toLeyte Province and Region84.2 Telephone survey on DTI - Ormoc Last weekpower rates October4.3 Ask LEYECO to ex- Ormoc Nov. 2004plain power bills Chamber of Commerce and Industry (OCCI)4.4 Disseminate informa- OCCI Nov. 2004tion to OCCI4.5 If deemed necessary, OCCI From 1st.lobby for lower power quarter 2005prices with LGU and onwardsLEYECO5. Information exchange No activity in this fieldon possibilities of pro- carried out so far.moting high-potentialagro-industries 9
  • LRED Action Plan Ormoc Field of interven- Who? When? Status as per mid Feb-tion/steps for implemen- ruary 2005 tation5.1 Designate investment SMED 1st. quarterpromotion officer Council 20055.2 Assign the task of or- City LGU 1st. quarterganizing an investment 2005promotion seminar to theofficer5.3 Conduct investment DTI, LGU 1st. quarteropportunities seminar to 2005match investment poten-tials, resources availableand potential investors.Several sub-activities fol-low which are not pre-sented in this report.6. Marketing of Ormoc asa location for business6.1 Creation and estab- Ormoc LGU 4th. quarter + According to thelishment of Ormoc website 2004 – 4th. City Developmentas a location for business.1 quarter 2005 Planning Coordina- tor, the website is to be launched early February 2005.6.2 Lobby for the revival of NGO, OCCI 4th. quarter " Steps 6.2 to 6.4 notthe Provincial Industrial and produc- 2004 – 1st. carried out so far.Center and support from ers quarter 2005city LGU.6.3 Join outbound invest- Leyte Prov’l within 2005ment missions. Gov’t. and LGU Ormoc.6.4 Identify the competitive City Tourism 4th. quarteradvantage of Ormoc as Council 2004tourism destination.1 During the discussion, other investment promotion tools beside a website came up, such as a flyer or CD, brochures, video clip. 10
  • 4 FINDINGS OF THE APPRAISAL TO BAYBAY, PALOMPON AND CARIGARAThe detailed findings are presented in annexes 3, 4 and 5. They are reflect-ing the information and impressions obtained during the interviews andvalidated in the workshops. They do not claim to be accurate in all detailsbut rather depict the broad picture of the regional economies of Baybay,Palompon and Carigara. The summaries of the interviews are presented inannexes 6, 7 and 8. This chapter is highlighting the findings by fields ofanalysis:Enabling environmentThe enabling environment2 is found to be quite positive in all three of thestudied local areas: The visions for economic development appeared to bequite realistic. The Mayor in Baybay stressed the need to base the evolu-tion of the local economy on local resources, Palompon is geared towardspreservation natural resources as a prerequisite for LRED and the Mayor ofCarigara emphasized the necessity of sustainable initiatives (“no-flash-in-the-pan activities”). Respondents from the private sector unanimously saidthat they have never experienced any form of “under-the-table” paymentwith local administrations. Local taxes were reported to be moderate.Palompon pioneered in the development of alternative sources of local in-come (proceeds from the Tabuk Marine Park), thereby increasing the shareof local income of the total budget from 15% in 1995 to 23% in 2003, with-out stifling business development. In Baybay and Carigara local incomereaches a mere 12% and 8% respectively. In all three cases there is scopeof improvement with regard to the introduction of one-stop-shops for busi-ness licensing in the literal sense of the word. Local business people stillhave to approach up to 10 different desks, though mostly located in thesame building or in the nearby area. According to them, they on averageneed two to three days to get their business license renewed. Although thisdoes not constitute an overly heavy burden on entrepreneurs, streamliningthe process would give a clear indication of the LGUs willingness to providefertile ground for business development.Micro, small and medium enterprises, farmersThere are indications for economic growth in all of the three municipalitiesas evidenced by a number of start-up businesses located locally. Baybayappeared to be the most dynamic among them and even managed to at-tract medium-sized companies to start operations recently in the baranguayHilapnitan. It is the only one where a considerable degree of processing ofagricultural commodities is taking place (coconut oil milling and abaca pulpmanufacturing). Cooperatives are active in all three local areas, with some2 For the purposes of this appraisal the international consultant defines enabling environment as activities related to visioning, local taxes and business licens- ing. Other more service related tasks of the local administration such as invest- ment promotion and education fall under the category of “support organiza- tions”. 11
  • of them, such as the Palompon Community Multi-Purpose Cooperative(PACCI) and the Kangara Multi-Purpose Cooperative in Carigara, beingconsidered as “local World Bank”. It is also noteworthy that the fisher folk inPalompon, with the support of the LGU, developed boneless danggit fishingand processing into a thriving industry, whereas elsewhere in Leyte fisher-men are affected negatively by shrinking marine resources.Notwithstanding these positive trends, there is still a lot to be done in orderto accelerate economic development and generate more employment andincome opportunities. For instance, farmers use coconut nearly exclusivelyfor copra extraction and very few of them have ventured into alternativeuses such as the production of virgin coconut oil, wine, milk, vinegar,brooms, activated carbon, charcoal bricks, and the use of coco coir andshell. In addition to this, only a very small number of coconut planters isengaged into undercropping and making more effective use of their land.Apart from this, the potential for local and recreational tourism appears tobe largely untapped. In Carigara, the local rice industry is jeopardized bylow productivity and declining soil quality, especially in the upland areas.Although businesswomen in Carigara find a ready market for their nativedelicacies, some production constraints still impede expansion of theirtrade.Support organizationsPositive and not so positive aspects with regard to support organizationswere identified in all three municipalities. The LGU in Baybay has an out-standing reputation for its capacity to attract investors from outside itsboundaries. “They rolled out the red carpet for us”, a representative of oneof the investors responded. Local education providers such as the LSU inBaybay, the Palompon Institute of Technology (PIT) and the Holy CrossCollege (HCC) in Carigara provide active support to the local economy in anumber of ways, be it as active partner in containing the spread of abacadiseases (LSU) or as a provider of good quality and demand driven educa-tion (PIT: training of seamen/cadets for the international labour market incooperation with a Dutch organization; HCC: computer science and tech-nology as a new course to be offered in Carigara). A striking feature is theexpansion of the supply of micro-credit partly through cooperatives (suchas PACCI and the Kangara Coop.) and partly through micro-banks (such asthe Green Bank in Baybay). Some of them appear to have an excellentportfolio quality and are geared towards performing at world class stan-dards. Their existence is an important contribution towards liberating localbusiness people from the iron grip of loan sharks and enhancing their fi-nancial assets for productive purposes.One common feature of the three areas is that they have not yet engagedin investment promotion in a systematic way through promotion materialsand participation in fairs and outbound missions. This holds true even forBaybay, the champion in this field among the three. In Palompon, the ap-praisal team also felt some reservations on part of the local LGU towardsinviting “outsiders” to do business locally. Some scope for improvementsalso exists with regard to economic planning: There are either very com-prehensive and ambitious plans of which only a very small fraction getsactually implemented (such as the Municipal Enterprise Development Plan 12
  • Carigara 1999 – 2005) or there are no holistic plans at all. Systematic moni-toring also appeared to be lacking.Human and natural resourcesThe interview partners were, in general, optimistic with regard to the avail-ability of unskilled labour. Wages are also low since most entrepreneurs arenot adhering to minimum wage legislation. Many were also saying that theirquality in terms of “trainability” and work ethics is good. However, with re-gard to this aspect, especially respondents representing larger companiesclaim that quite some training and education needs to be done in order ad-just them to the requirements of the job. Whether inadequate preparation ofthe work force or a certain type of recruitment practices on part of the em-ployers (e.g. six-month contracts in order to avoid social costs) is the prin-cipal reason for these difficulties could not be finally explored. Skilled labourwas also reported to be available locally, although some exceptions werealso noted (e.g. machine operators in Baybay). In Carigara, skilled peoplecan also be sourced in the regional capital Tacloban, just one hour driveaway from the town. In general, labour appears to be of no major headachefor the business communities. This is partly due to the existence of highereducation institutions within the local area and partly due to the relativelylow level of technology in use.In terms of natural resources, the three municipalities are gifted with goodwater supply, fertile land, forests and some tourist attractions. Land is dis-tributed quite equally, shielding the areas from the negative aspects of theComprehensive Agrarian Reform Program (CARP). Coconut and rice arethe dominant crops. Rice from Carigara is known for its premium quality.Within Baybay and its neighbouring municipalities abaca is another impor-tant crop. The major problems are the exclusive use of coconut for copraextraction, lack of undercropping of coconut plantations as well as soil deg-radation and erosion.Coastal marine resources in Baybay and Carigara appear to be jeopardizedby illegal fishing practices, overfishing and pollution. However, the LGU ofPalompon managed to reverse this trend and set up a strict and largelysuccessful coastal marine management program. Its components are gen-eration of alternative sources of income for the local fisher folk (livelihood),information, education and enforcement. The program already produced anumber of tangible economic benefits for the local economy: The fishingpopulation is thriving on the marketing of dried boneless danggit fish andthe LGU increased local income considerably due to proceeds from educa-tional tourism it is promoting in the Tabuk Marine Park.InfrastructureThe results of this second appraisal mission largely confirm those obtainedduring the first one: Communication infrastructure is considered almost ex-cellent, with cell phone coverage nearly reaching even remote baranguaysin the municipalities studied. The only exception to this general rule is thebaranguay Hilapnitan, Baybay’s industrial zone, where investors wereforced to establish their own satellite phone system and operate an office inBaybay town, as this area is not connected to the communication system. 13
  • Apart from this, the road system was improved in all three of the municipali-ties, with the large majority of baranguays getting linked to farm-to-marketroads. In Carigara, a considerable share of feeder roads is even cemented(one lane). In Baybay and Palompon, the municipalities’ administration up-graded the towns’ market facilities, an effort not yet fully concluded in Bay-bay and still awaiting commencement in Carigara. Price of real estate in thecommercial centres of the municipalities went up notably, with Baybay evenmatching Cebu prices. Although this may be an indication of a healthy eco-nomic development, it may be considered a competitive disadvantage bypotential investors. However, prices of real estate outside town proper aremuch lower. Our respondents unanimously claimed that prices of electricityare too high taking proximity to the power sources into account. Most ofthem were especially apprehensive of the extra charges billed by LEYECO.Two industrial consumers of electricity in Baybay, though, enjoy lowerprices due to directly sourcing power from NAPOCOR. Reliability of powersupplies was regarded good in general; however, consumers in Carigaraexperienced many brownouts during January and February 2005. Ware-housing facilities were reported missing in Carigara, a factor contributing tolocal rice farmers selling their produce immediately after harvest at a lowprice.Conclusions:In economic terms, all municipalities provide potential for a successful ap-plication of the LRED – approach. Baybay is experiencing dynamic growthand Palompon as well as Carigara are recording moderate growth rates. Allof them dispose of dynamic entrepreneurs in different fields of economicactivity. There are still untapped natural resources and the example ofPalompon shows that even coastal marine resources can be restored. Theinfrastructure generally allows for an expansion of entrepreneurial activities.The local administrations were active in creating an environment conducivefor business, with the LGU of Baybay being the most straightforward andproactive among the three in this regard. Notwithstanding these efforts,unemployment is on the rise in all municipalities, exerting considerablepressure towards more pronounced and systematic local economic plan-ning and implementation. In terms of interaction between LGU, entrepre-neurs and other representatives of the civil society, the three municipalitiesprovide a fertile ground for application of the LRED – approach. 14
  • 5 ACTION PLANS AND COOPERATION AMONG GTZ-PROGRAMSSince the economic and political environment is, in general, favouring work-ing with the LRED – approach in the three appraisal areas, the consultantrecommended to engage into action planning during the validation work-shops. This recommendation was accepted by LGUs and entrepreneursalike. Based on the rapid appraisal, he proposed several lines of interven-tion for each municipality (see table 1). Their number depended on the per-ceived capacity of the respective LGU to venture into such an approachand on the number of participants present in the workshop. The detailedaction plans are found in annexes 9, 10 and 11. Table 1: Fields of intervention of action plans Baybay Palompon Carigara1. Address investment 1. Improve employ- 1. Improving conserva- promotion more sys- ment/ income gen- tion/ packaging of tematically eration through tour- delicacies ism2. Initiate the develop- 2. Diversify use of co- 2. Exchange of experi- ment of local tourism conut ences in coastal ma- rine management3. Organize the busi- 3. Address investment 3. Negotiate with com- ness community promotion mercial (universal) banks to locate in Carigara4. Develop comprehen- 4. Promote use of or- sive economic plan ganic fertilizer in rice farming5. Provide information 5. Address investment on the prospects of promotion virgin coconut oil productionAs the table reveals, the fields of intervention are partly geared towardspromoting business and investments directly (e.g. through developing tour-ism, diversifying use of coconuts and improving conservation and packag-ing of delicacies) and partly towards improving the institutional environment(e.g. systematic investment promotion and economic planning). The latteris expected to contribute to employment and income generation too by ma-king institutions work more effectively when handling economic affairs.In the debriefing meeting held at GTZ headquarters in Manila on February16th, potential areas of cooperation were discussed between SMEDSEPand GTZ-LIP. One of the guiding questions was how GTZ can improvesupport to action plan implementation by creating synergies among its dif-ferent programs and projects. The other question was, what SMEDSEP-LRED can offer other programs. The discussion was based on a proposalby the international consultant (see table 2). 15
  • Table 2: Cooperation Potentials among GTZ regarding LRED in Leyte Location Field of Intervention Potential input from other GTZ - Programs/ProjectsOrmoc Collect information on power Decentralization project to provide price fixation information on institutional set-up of power supply and tariff structureBaybay Provide information on the Provide information on the techni- prospects of virgin coconut cal features of virgin coconut oil oil production production (GTZ-LIP)Baybay, Diversify use of coconut Provide information on the techni-Palompon, cal features and economic feasi-Carigara bility of alternative uses of coconut (GTZ-LIP)Carigara Promote use of organic fertil- Provide case studies of successful izer in rice farming uses of organic fertilizer in rice farming (GTZ-LIP) Location Field of Intervention Potential input from SMEDSEP – LREDLeyte Prov- Training of LRED-facilitators Offer training in LRED – method-ince ology to staff of GTZ-projects and their partner organizationsThe following points were finally agreed: ! GTZ-LIP will support SMEDSEP-LRED with information regarding technical and economic aspects of diversifying the use of coconut. This includes virgin coconut oil production. However, the way of how this transfer of information may occur (e.g. provision of studies and/or active involvement in the conduct of workshops and seminars) will still have to be sorted out. Mr. Peter Keller, Coordinator of the LIP, will dis- cuss the topic with his team and feed the results back to SMEDSEP. ! GTZ-LIP is also open to cooperation with regard to the use of organic fertilizer in rice production (a field of intervention in Carigara). How- ever, the extent to which GTZ-LIP will be able to provide a substantial input in this field will still have to be examined in more detail. Mr. Kel- ler will give feedback on this issue after consulting his team. ! Whether and to what extent the Decentralization Project will be in a position to provide assistance on the issue of power price fixation could not be explored due to the absence of a representative of this project in the meeting. ! SMEDSEP will provide opportunities to other programs conducted with GTZ – involvement to participate in a training course on ap- proaches of LRED in the second half of this year. It was pointed out that the training will target at practitioners and will focus on practical tools such as conducting rapid economic appraisals and using facilita- tion techniques. GTZ-LIP announced interest in sending either staff of its partner agencies or own personnel to the training. 16
  • Concluding this chapter, one may emphasize that the quality of the actionplan improved considerably between phase I (Ormoc) and phase II (Bay-bay, Palompon and Carigara) of the LRED – appraisal missions. This re-flects the fact that the mission team placed more emphasis on more de-tailed and realistic planning. However, at the same time marked differ-ences between the plans produced in phase II are remaining. In terms ofscope, technical quality and commitment of local stakeholders, the Cari-gara plan appears to be the most advanced in this respect. The fact thatSMEDSEP and GTZ-LIP agreed upon broad lines of cooperation may fur-ther the prospects of getting the plans implemented. 17
  • 6 LOGFRAME AND IMPACT MONITORINGDuring his preceding mission in October/November 2004, the internationalconsultant drafted a proposal for a logframe defining the logic of interven-tion, indicators, means of verification and assumptions of SMEDSEP’sLRED sub-component. The following pages present a revised form of thelogframe.Two major changes as compared to the draft version occurred. The firstrelates to the intervention logic. There were two kinds of intervention logicbefore, one following the logframe and another following the impact as-sessment terminology. Now, the terminology has become unified. For in-stance, “purpose” (logframe terminology) is now congruent with “directbenefit” (impact assessment methodology) and “overall objective” with “indi-rect benefit I”.The second modification relates to the indicators. The draft version of thelogframe did not contain any baseline information that could serve as yard-stick for measuring advances in local economic development. In the pre-sent version, some of the information gathered during the appraisal missionis used as baseline. This refers to positive or negative trends in the turn-over and number of employees of the companies interviewed during thetwo missions. It should be noted, that the interviews were not conductedwith the purpose of producing material for a baseline study. The informationis by no means statistically representative. However, dealing with financialconstraints on the one hand, which did not allow for a comprehensive andexpensive baseline study, and facing the necessity to have some point ofdeparture for performance measurement on the other hand, the consultantopted for this pragmatic solution. 18
  • Logframe LRED – Leyte 11/2004 – 08/2006 Impact chain/Intervention Indicators Sources of verification Assumptions logicIndirect benefits II/ Overall employment of those com- Survey of those companies that had Macro-economic environments re-Long-term development goals: panies interviewed during the ap- been interviewed during appraisal in mains relatively business friendly.Competitiveness of SMEs is in- praisal mission has gone up by 2% Ormoc, Baybay, Palompon andcreased and employment and in- between end 2004/beg. 2005 and Carigara. “Summary companycome generation of SMEs has ac- 2nd quarter of 2006 questionnaires” serve as baseline.celeratedIndirect benefits I/Overall objec- ! The number of companies in- ! Survey of those companies that There are no major externaltive: terviewed during the appraisal had been interviewed during “shocks” impacting negatively onThe local environment of selected missions stating that their turn- appraisal in Ormoc, Baybay, the local economic environment.cities and municipalities in Leyte over is increasing, has gone up Palompon and Carigara.has become more conducive for by 5% between end 2004/beg. “Summary company question-economic growth 2005 and 2nd quarter of 2006 naires” serve as baseline. ! By 2nd quarter 2006, local ! Focus group discussion in each stakeholders are able to men- of municipalities participating in tion at least four specific ar- LRED. No baseline available. eas/examples where local envi- ronment was improved as a re- sult of applying LRED - ap- proachDirect benefit/Purpose: ! At least 60% of the activities ! Quarterly monitoring reports of The local political and administrativeThe LRED – approach has become defined in the action plans are environment remains receptive to 19
  • Logframe LRED – Leyte 11/2004 – 08/2006 Impact chain/Intervention Indicators Sources of verification Assumptions logican integral part of the planning and successfully carried out until the LRED – Coordinator. the LRED – approach.implementation procedures of se- 03/2006lected cities/municipalities of LeyteProvince ! As a result of successful plan ! New plans and workshop re- implementation 3 out of 4 mu- ports. nicipalities did a replanning in the 2nd quarter of 2006Use of service or product/Result LRED action plans defined in at Action plans and workshop docu- There is a critical mass of local1: least 4 municipalities of Leyte until mentations stakeholders interested in the LREDLRED action plans jointly developed 3/2005 by private and public sector - approach.by private and public sectorUse of service or product/Result 20 staff members of provincial and Training report and attendance Decision-makers in local and pro-2: local administrations, BDS- sheet vincial administrations, BDS-LRED facilitation capacities are providers and business service providers and business servicelocally available organizations from the Province of organizations are receptive to the Leyte participated in a training idea of training their staff in the course on LRED and facilitation LRED - approach. techniques until 12/05 20
  • ANNEXESAnnex 1: Terms of referenceAnnex 2: List of persons metAnnex 3: Findings LRED BaybayAnnex 4: Findings LRED PalomponAnnex 5: Findings LRED CarigaraAnnex 6: Summary company interviews BaybayAnnex 7: Summary company interviews PalomponAnnex 8: Summary company interviews CarigaraAnnex 9: Action plan BaybayAnnex 10: Action plan PalomponAnnex 11: Action plan CarigaraAnnex 12: Report writing format for LRED-Coordinator
  • ANNEX 1
  • Terms of Reference Short term mission to the Small and Medium Enterprise Development for Sustainable Employment Programme (SMEDSEP) on Local Economic Development (LED)Time: The mission to the Philippines is expected to start end of January 2005 with a durationof approximately 4 weeks.Table of Content1. Background/Rationale2. Objectives of the Mission3. Scope of Work4. Expected Output5. Budget1. Background/RationaleThe SMEDSEP Program is an integrated approach for the development of the private sectorin the Philippines with a regional focus on the Visayas. Its over-all objective is: “State-runand private institutions create general business conditions in the Philippines, particularly inthe Visayas, to harness entrepreneurial potential and encourage competition”. The Programcomprises of four (4) components, namely:1.) SME Policy/Enabling Environment for SMEs,2.) Business Development Services (BDS) for SMEs,3.) Access to Financial Services for SMEs,4.) Demand-driven training programs for the workforce.Component 2 and 3 are subcontracted for implementation to GFA-Management. Focus ofthe planned mission is component 2 which develops and implements a Local EconomicDevelopment (LED) approach for the Province of Leyte, regarding the scope of services ofthe 3 other components.2. Objectives of the MissionThe objectives of the mission are: ! LRED process in Ormoc (in collaboration with local consultant) is further facilitated. ! The LRED – process with participation of the major stakeholders is initiated in 3 other municipalities in Leyte.3. Scope of WorkThe consultant shall study all the required documents of the project and the availableeconomic data and information of Leyte Province. He shall meet related stakeholders (GTZ,esp. LIP Project, Regional and Local Government, DTI, TESDA, NEDA, Associations,Entrepreneurs, BDS and HRD providers). More specifically, the consultant shall: ! Assess the progress of LRED process in Ormoc and develop with the local consultant an activity plan for the local consultant. 1
  • ! Validate the selection of 3 additional municipalities for a rapid economic appraisal. ! Carry out rapid economic appraisal in 3 additional municipalities ! Make recommendations on municipalities to be included in the LRED strategy Leyte ! Prepare an action plan with the stakeholders from recommended municipalitiesThe consultant shall draw a detailed work plan addressing the steps to be taken and the timeneeded to achieve the objectives prior to commencement of the consultancy. Uponagreement of the work plan by the Senior Adviser BDS, it will become integrative part of thecontract. The work plan will be fined-tuned upon arrival of the consultant.4. Expected OutputTwo weeks after completion of the mission to the Philippines, a draft report will be sent to theSenior Adviser BDS. The draft report shall comprise the activities as stated under point 3,and results/ recommendations thereof.The findings of the appraisal mission shall be documented to be forwarded to thestakeholders contacted in the mission.One week after receiving the comments, the final version of the report will be submitted.5. BudgetThe mission is expected to last up to one person month, including preparation and reportwriting.Proposed expert: Rolf Speit, who implemented already the first mission with regard to theLRED approach in Leyte. His CV was part of the original GFA proposal.Cebu City, 16th day of December, 2004Markus EhmannSenior Adviser BDSSMEDSEP 2
  • ANNEX 2
  • List of persons met/interviewedPersons met/interviewed Institution Function DateMarkus Ehmann SMEDSEP/GFA Senior Advisor 22/01/05Rita Pilarca SMEDSEP/GFA Advisor 22/01/05Gloria M. Adapon SMEDSEP/GTZ LRED-Coordinator 22/01/05Raul Cam LGU Ormoc City Planning&Development 24/01/05 CoordinatorMaylyn Villamor AFFIRE Ormoc Chief Operating Officer 24/01/05Vivencio Sumaylo AFFIRE Ormoc General ManagerAtty. Roy Fiel Ormoc Chamber of C&I President 24/01/05Florante Cayunda LGU Baybay Vice-Mayor 25/01/05Vicente Veloso Sangguniang B. Baybay Head of Committees on Co- operatives; Labor; Trade and InvestmentJuanito Modina Sangguniang B. Baybay Environmental CommitteeErnesto Butanan Sangguniang B. Baybay Committee Laws & RulesDeogracias Pertinez Sangguniang B. Baybay Agricultural CommitteeJose Carlos Cari LGU Baybay Local Chief Executive 25/01/05Cedrick Chan LGU Baybay DILG Officer 25/01/05Patrick Postero LGU Baybay Municipal Planning & 25/01/05 Development CoordinatorJosie Duterte LGU Baybay Planning StaffIvor A. E. Mojado ISBS Pangkor Owner/Manager 25/01/05Linda Odicta Municipal Employees Coop. Vice-Chairman 26/01/05Noel Sosmeña CIABU Primary Multi- Chairman of Board of 26/01/05 Purpose Cooperative DirectorsVictor B. Parillas Specialty Pulp Manu- Plant Manager 26/01/05 facturing Inc. (SPMI)Rey Polito Visayan Oil Mill Plant Manager 26/01/05Dr. Jose Alkuino, Jr. Leyte State University Vice-President Administra- 26/01/05 tion & FinanceDr. Wolfreda Alesna Leyte State University Research & Extension 26/01/05 DirectorVirginia R. Danas Dañas Rice & Corn Trading Owner/Manager 27/01/05Roel Salasayo Anistar Trading & Brokerage Plant Manager 27/01/05Gabriel Israel PNB - Bank Operations Officer 27/01/05Cheryl Bongcaros Green Bank Officer-in-Charge 27/01/05
  • List of persons met/interviewedEddy Abas EI - Enterprises Owner/Manager 27/01/05Marcelo C. Oñate LGU Palompon Local Chief Executive 31/01/05Ledinila A. Bregaudit Sangguniang B. Palompon SB memberHarvey Felpiñon Sangguniang B. Palompon SB memberJesus L. Sanchez Sangguniang B. Palompon SB memberLaureto Nuñez Sangguniang B. Palompon SB memberManuel Bertulfo Sangguniang B. Palompon SB memberFrancisco Janico Jr. LGU Palompon Municipal AgriculturalistRaoul T. Bacalla LGU Palompon Tourism & Environment OfficerRomy Cartalla LGU Palompon Municipal Planning & Development CoordinatorJerlito Letrondo LGU Palompon Municipal AdministratorGilbert Manongsong Northern Leyte College Director 31/01/05José Pajaron Multi Circuit Electronics Owner/manager 31/01/05César Acis Jolita Farm Owner/manager 01/02/05Doroteo Yap Doroteo L. Yap Stores Owner/manager 01/02/05Ramon Oñate Lourd Agrivet Supply Owner/manager 01/02/05Elisabeth Ragas Liberty Farmers Multi- Chairman 01/02/05 Purpose CooperativePedro Omega Palompon Institute of Vice-President 01/02/05 TechnologyMaria-Teresa R. Fisherfolk Community Owner/manager 02/02/05Contenidas Baranguay PlaridelRoy Domael Rosh Cellphone Owner/manager 02/02/05Loy Acido Philippine National Bank Sales & Services 02/02/05 ManagerEulogio Tupa PACCI Manager 02/02/05Dorothy L. Roble DLR Enterprises Owner/manager 02/02/05Gil Lloren Sangguniang B. Carigara Trade & Industry Committee 04/02/05Nick Javines LGU Carigara Municipal Planning & 04/02/05 Development CoordinatorMs. Anlie G. Apostol LGU Carigara Local Chief Executive 04/02/05Lilian D. Estorninos Eastern Visayas State Campus Director 04/02/05 UniversitySarah Caballes Kangara Multi-Purpose Chairman 04/02/05
  • List of persons met/interviewed CooperativeBlani Macayan Taytay sa Kauswagan Coop Manager 04/02/05Olímpia Arminal Rice Retailers Association President 05/02/05Arnulfo Alberca Fish Vendors Association President 05/02/05Felicisimo Sotomayor Carigara Tricycle Drivers President 05/02/05 AssociationRoque Bimboy Aguilar RAQ - Farms Sales Manager 05/02/05Corazon T. Lauron CTI Enterprises Owner/manager 07/02/05Sis. Anthony Kuizon Holy Cross College College Directress 07/02/05Samuel Tabada Blacksmith SG Liwanag President 07/02/05Romeo Esmiro LGU Carigara Municipal Agricultural 07/02/05 OfficerManuel Camposano Jr. Camposano Rice Mill Owner/manager 07/02/05Vivencio Lim Shoppers Budget Owner/manager 07/02/05Felomina G. Enero Lomens Pastillas Owner/manager 07/02/05
  • ANNEX 3
  • LRED: Results of the Rapid Appraisal of the Municipality of Baybay Strengths Weaknesses/Points for improvementEnabling ! The Mayor is having a realistic vision of local and regional ! LGU is still heavily dependent on the IRAenvironment economic development (local resource based) ! The business licensing process seems to be largely ! For business start-ups, the one-stop-shop is not yet fully corruption free implemented (no permanent local office of national agencies like Phil Health, SSS etc. – mostly situated in Ormoc City) ! Moderate local taxes ! For business renewals, the one-stop-shop is practically implemented ! LGU is providing incentives to investorsSmall and medium ! Entrepreneurial-spirited local environment ! No existing local business yet engaged in producing virginenterprises, farmers coconut oil ! New companies were established and existing companies ! The expansion of rice production appears to be hampered expanded or diversified (abaca pulp mill, coconut oil mill, by a variety of factors largely determined on national level restaurant) indicating a dynamic local/regional economy. (e.g. agrarian reform, trade policy) ! There are negotiations underway to attract foreign ! Lack of low cost irrigation system for rice cultivation companies to Baybay (e.g. Shenyang Furniture Corp.) ! There are ongoing initiatives on producing virgin cocnut oil ! There are cooperatives with management problems esp. in (LSU and GTZ-LIP) the field of micro-finance ! Micro-finance institution(s) providing professional services ! Some economic activities appear government-driven and to the poorer sections of society may not be sustainable (micro-finance coop. + tourism initiative)
  • LRED: Results of the Rapid Appraisal of the Municipality of Baybay Strengths Weaknesses/Points for improvement ! There are ideas of developing local tourism ! Lack of technical assistance on making project proposals and fund sourcing ! Reportedly, there is a considerable number of active ! Lack of knowledge on technology for commercial food cooperatives in the local area processing and packaging ! Initiatives to promote backyard aquaculture (tilapia)Support ! The LGU has successfully facilitated the attraction of ! There is no comprehensive plan of addressing the localorganizations investors from outside Leyte economic problems systematically ! Considerable number of training/education providers (LSU, ! The local business chamber does not play an active role in FCIC, Baybay Institute of Technology) advocacy and entrepreneurship building. ! LGU, LSU, FIDA and Provincial Gvt. are cooperating well ! Investment promotion needs improvement (e.g. updating of in fighting the bunchy top disease which is badly affecting promo materials, participation in outbound missions) abaca industry ! Since other LGUs are less active in fighting the bunchy top disease, the whole abaca industry remains vulnerable ! Stronger cooperation between LGU and LSU needed in other areas (e.g. undercropping of coconut plantations)Human resources/ ! Unskilled human resources are in abundance and ! Some companies report inadequate attitudes of unskillednatural resources relatively cheap people ! For a town like Baybay, the local supply of skilled labour is ! Some skills (e.g. machine operators) are not available quite good locally ! Good endowment with natural resources (water, fertile ! So far, the potential of coconut as raw material for textiles, land, forests) furniture has not yet been fully utilized
  • LRED: Results of the Rapid Appraisal of the Municipality of Baybay Strengths Weaknesses/Points for improvement ! Potential for agricultural production (e.g. undercropping of coconut plantations) is not fully utilized ! Fishing resources are becoming depleted by inadequate fishing practices and population pressuresInfrastructure ! Generally good road network and nearly all Brgys. have ! No communication coverage in Brgy. Hilapnitan (location of access to farm-to-market roads. industrial activity) ! Communication (cellphone, fixed lines, internet) is ! Lack of air transport Ormoc – Manila causes extra generally considered good. costs/time for companies based in Manila ! The city administration has upgraded the town’s ! Real estate in Baybay commercial center is reported to be infrastructure (public market, bus terminal). quite expensive. ! Port facilities in Baybay proper and Brgy. Hilapnitan ! Power prices are generally considered high existing and being improved ! There are still, though few, brownouts ! Major industrial users of power are supplied directly by ! No regular bus transport at night NAPOCOR and avail of the electricity at a lower price ! Real estate outside commercial center quite cheap ! Better services of the regular ferry service to Cebu needed ! Shallow port in Baybay poses limits to the kinds of vessels that can come in
  • ANNEX 4
  • LRED: Results of the Rapid Appraisal of the Municipality of Palompon Strengths Weaknesses/Points for improvementEnabling ! The municipality is dedicated towards developing a ! There is a need to adjust vision and mission statement inenvironment sustainable eco-system (vision and mission statement) order to make it clear that the LGU is not exclusively focusing on trade ! The business licensing process seems to be largely ! Queueing for business permits renewal is allegedly a corruption free hassle ! The LGU has increased the share of local income of the total municipal budget from 15% in 1995 to 23% in 2004 without overburdening local business people ! One-stop-shop is practically implemented in PalomponSmall and medium ! There are positive indications of a moderate economic ! There are very few industrial/processing activities going onenterprises, farmers growth in the area in the area ! There are active and dynamic business people in the area ! The potential for recreational tourism is not yet fully utilized/developed ! Several fishing communities have successfully ventured ! The potential of OFWs investing in business ventures into boneless danggit production and marketing locally is largely untapped ! There is a thriving eco- and educational tourism in the Tabuk Marine Park generating some income for the LGU; high demand for tourism packages ! Reportedly, there is a considerable number of active cooperatives in the local area (20+) specifically serving women; well organized umbrella organization (PACCI) ! The LGU has assisted in the development of aquaculture
  • LRED: Results of the Rapid Appraisal of the Municipality of Palompon Strengths Weaknesses/Points for improvement in the local areaSupport ! Considerable number of training/education providers ! There is no comprehensive plan of addressing the localorganizations (Northern Leyte College, Palompon Institute of economic problems systematically Technology) ! The PIT is successfully training seamen for the ! No systematic way of investment promotion (e.g. through international labour market (in cooperation with Dutch promo materials, participation in outbound missions) partner organization) ! There are initiatives to promote local self-employment (Pot- ! There is no active business chamber to voice the concerns Pot drivers, trainings provided by PIT) of the business community ! Strong partnership between PACCI and LGU re: economic ! Existing veterinary services do not always cope with the development demands of the local animal farmers ! Garbage collection in the market area has reportedly ! Some businesspeople report lack of access to finance ! improved collateral is a problemHuman resources/ ! Unskilled human resources are in abundance and ! Some companies report inadequate attitudes of unskillednatural resources relatively cheap people ! For a town like Palompon, the local supply of skilled labour ! So far, the potential of coconut as raw material for textiles, is quite good furniture has not yet been fully utilized ! Remittances of OFW have improved the local economy ! Know-how of improved post-harvest techniques is lacking (e.g. drying of copra) ! Local people are peace and order - loving ! Potential for undercropping of coconut trees is by far not utilized
  • LRED: Results of the Rapid Appraisal of the Municipality of Palompon Strengths Weaknesses/Points for improvement ! Good endowment with natural resources (water, fertile land, marine resources) ! Relatively equal distribution of land – few hacienderos ! Variety and volume of fish appears to have improved as a result of strict coastal marine managementInfrastructure ! Road network in the municipality improved (connection of ! Some farm-to-market roads are not of good quality and baranguays to road network) maintenance appears not to be adequate (e.g. after landslides) ! Availability of agricultural land near town proper, at a lower ! Cost of real estate in Palompon town is reported to be cost rising ! Power connections from two different power lines ! Power: There are still, though few, brownouts ! Regular bus services to Tacloban and Ormoc ! Power prices are generally considered high, esp. regarding the extra charges demanded by LEYECO ! Communication (cellphone, fixed lines, internet) is generally considered good. ! The city administration has upgraded the town’s infrastructure (public market, shop stalls, cementation of roads within town proper). ! Existence of deep water and newly upgraded port ! Regular ferry service to Cebu
  • ANNEX 5
  • LRED: Results of the Rapid Appraisal of the Municipality of Carigara Strengths Weaknesses/Points for improvementEnabling ! The mayor’s vision is towards developing sustainable ! Local budget depends heavily on IRA (around 92% IRA)environment income-generating activities, no “flash-in-the-pan” ventures ! The business licensing process seems to be largely ! So far, no LGU-initiative to develop alternative sources of corruption free income apart from increasing taxes ! Local taxes are considered affordable by business ! One-stop-shop is not fully implemented in Carigara communitySmall and medium ! There are positive indications of a moderate economic ! There are few industrial/processing activities going on inenterprises, farmers growth in the area (bakeshop, pawnshops, hardware and the area drug store, RAQ-farms, rice-mill) ! Local farmers produce high-quality commercial rice ! There are very few initiatives to develop the tourism industry (exception: RAQ – farm restaurant) ! Most of the rice farms are irrigated ! Reportedly, productivity in rice farming is quite low ! Carigara is well known for its delicacies outside its ! Reportedly, some of the irrigation schemes are in need of boundaries improvement and repair ! The price of copra has gone up considerably during the ! Many micro – business people still resort to private money last years lenders (easy access) instead of using the micro-finance coops. ! There is some event-driven tourism ! Some locally produced commodities face marketing problems (e.g. vegetables, pastries products) ! Blacksmithing appears to be a sunset industrySupport ! The LGU has a very comprehensive Municipal Enterprise ! Only few of the activities suggested in the MEDP wereorganizations Development Plan (MEDP) actually implemented
  • LRED: Results of the Rapid Appraisal of the Municipality of Carigara Strengths Weaknesses/Points for improvement ! There are several business associations (fish vendors, rice ! No systematic way of investment promotion (e.g. through retailers, tricycle drivers, farmers) promo materials, participation in outbound missions) ! There are active and dynamic community leaders in the ! Problems of Eastern Visayas State University: Scarcity of area engaged in improving the local economy funds, training facilities and offer of courses not conducive to demand of labour market, not sufficiently skills-oriented ! The Holy Cross College is offering high-quality education ! There is no commercial bank in the area to locals and is adjusting its course structure to market demands ! TESDA is reported to be quite responsive regarding the delivery of short technical courses in the area ! There are several micro-finance providers (cooperatives) which broadened the supply of capital at lower cost esp. for farmers and micro and women-headed businesses (e.g. Kangara Multi-Purpose Coop., Taytay sa Kauswagan, OCCI) ! Strong presence and participation of Kangara Multipurpose Coop. in improving the local economy ! There is an LGU-driven initiative to promote seaweed cultivation ! There is an initiative to promote improved techniques of vegetable production (plastic mulching)Human resources/ ! Unskilled human resources are in abundance and ! So far, the potential of coconut as raw material for textiles,natural resources relatively cheap furniture has not yet been fully utilized
  • LRED: Results of the Rapid Appraisal of the Municipality of Carigara Strengths Weaknesses/Points for improvement ! Skilled labour can be sourced regionally ! Potential for undercropping of coconut trees is by far not fully utilized ! Good endowment with natural resources (water, fertile ! Illegal fishing is rampant reducing the marine resources land) and potential tourist attractions and undermining the survival of the fishing communities ! Relatively equal distribution of land – few quarrels between ! Soil quality is reported to have declined due to erosion and landowners and tenants use of inorganic fertilizer esp. in uphill areas ! Illegal logging activities are harming local rice industry by reducing the capacity of the forest to store waterInfrastructure ! Road network in the municipality improved (connection of ! Port is shallow and upgrading works were interrupted baranguays to road network); most roads are cemented although funds had been secured (DPWH) ! Regular bus services to Tacloban and Ormoc ! Lately (2005), there were many power brownouts ! Communication (cellphone, fixed lines, internet) is ! Power prices are generally considered high, esp. regarding generally considered good; cellphone coverage up to the the extra charges demanded by LEYECO remotest baranguay ! The city administration has established a new ! Cost of real estate in Carigara town is reported to be rising slaughterhouse ! Cost of real estate in Baranguays of Carigara Municipality ! There are no adequate accommodation facilities in the local is low area ! The local market is in need of improvement ! Few local warehousing and cold storage facilities available
  • ANNEX 6
  • Summary Company Questionnaires : Baybay, Leyte Part 1: Basic information on the companies interviewed 1.1 – 1.6 Basic information on companiesSector/Sub-sector Tendency Investments Future in- Purchase Purchase Target markets turn over during last vestments raw mate- pre- five years rial fabricated inputsAbaca Pulp Increasing (new plant) local interna- International: tional EuropeCrude Coconut Increasing Expansion of Increase ca- local local International:Oil/Refine Coconut capacity in- pacity Europe, USOil stalledMicro fi- stagnating Ventured to local Localnance/lending (multi other eco-purpose coopera- nomic activi-tive) tiesAgri: Rice and corn Increasing Replacement Local +milling, retailing, of machinery Other region -wholesaling; poultry Cebufeed distributionCommercial banking Increasing Upgrading of Local facilitiesRural banking/Micro Increasing LocalfinanceCharcoal production Increasing Local, CebuConstruction (sub- Increasing Upgrad- Additional PCs Localcontract- ing/expansioning)/franchising- of premisesgaming businessRestaurant Increasing Upgrad- Venture into local ing/expansion internet cafe of premisesCopra buying/trading Increasing Expansion of Venture into local Local, Reg 8, capacity in- franchising other regions in stalled (fast food Visaya industry)Fishing industry falling Venture into local backyard fishpond busi- ness: Summary Company Questionnaires Baybay 1
  • 1.7 Number of permanently employed staff1 Six years ago Three years ago Actual number 95 16 14 3 9 9 9 5 14 7 12 10 20 45Total 9 47 212Growth ratePart 2: Information on business environment and major constraints2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage) 2.1.1 Access to supplies 4.1 66% - good 10%- excellent 10%- fairSMEs 2.1.2 Consumer demand 5.0 60%- excellent 40%- good 2.1.3 Quality of products 4.5 63%- excellent 25%-good 12%-fair1 Only those companies which had already existed in 1998 are included here.Summary Company Questionnaires Baybay 2
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on supply situation: ! Abaca pulp: supply sometimes not possible to cater big volume of demand; de- pends on the consumer demand as well (there are many different grades in abaca), supply is versatile in nature; Good supply of water is a big consideration in setting up a plant in Baybay ! Abaca: (LSU) production is good; able to address the problem on the disease af- fecting the supply of abaca ! Equipment use in the plant are mostly from other countries ! Coconut oil/refine oil producer: supply is good; the location of the plant in Baybay is an advantage (Leyte-being one of the biggest producer of coconut) ! Copra trading : supply is very good in Leyte but competition among buyers has increased ! Good supply of water (for plants operating in Baybay) ! Charcoal production: supply is good, competition among buyers is increasing ! Micro-finance: increasing number of micro finance players in Baybay ! Agri/Rice retailing: Importation of rice in the country has affected the price of lo- cal price; over supply resulted to low prices of rice; also rice supply from neighbouring towns; Importation of rice in the Phils is not the solution to over- come rice shortage in the Phils ! Irrigation is the no.1 problem for farmers in Baybay ! Fishing industry: fish is getting scarce in Baybay; few banca for operations is also affecting the supply of fish ! Restaurant/Catering: access to supply is goodComments on demand situation: ! Rice retailing: not as profitable as before due to importation of rice from Thailand ! Presence of many micro finance players (rural banks in particular) in Baybay af- fected the demand for services of multi purpose cooperatives ! Increasing demand for charcoal in Baybay ! Gaming business: demand is increasing ! Charcoal: there is a growing demand in Baybay ! Copra trading: demand is okay but there is a growing competition; sales price of copra is quite low though due to pal oil competition ! Virgin coconut oil has a big potential ! Crude/Refine oil: demand is excellent, big potential for international market ! Rice retailing: buyers are from neighbouring towns, Cebu- is the biggest market; low price of rice from Iloilo with good quality is also affecting the demand for local rice ! Abaca: demand is good, but developing the market/customer is time consuming; end product depends on the consumer demand as there are many grades of abaca; abaca’s demand is high as it is being used for tea bags in UK ! Demand for abaca-fibre is high in Europe; replacement for fibre glass (automak- ing industry- Europe ! Commercial Bank: there is an increasing number of commercial banks in Baybay but the number of customer is likewise increasing ! Rural bank (micro finance) : demand for micro finance in Baybay is excellentSummary Company Questionnaires Baybay 3
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on quality of products: ! Multi purpose cooperative: services are affected by the high rate of delinquency, weak financial management; “loan shopping” – overburdened with loans ! Rice retailing: good quality but prices of competitors from outside Baybay is af- fecting the demand; imported rice from Thailand with the same good quality of rice produce in Baybay is affecting the sale ! Commercial bank: old equipment being used in the operations is affecting the quality of service provided to clients; upgrading of equipment is needed for better quality of service ! Rural bank: extended services to clients helps increase the demand for micro fi- nance ! Abaca Pulp: difficult to assess quality because the company has started only re- cently. ! Copra/Crude/Refine Oil: quality is excellent; quality is meeting its standards ! Gaming business: installation of “up to date” equipment is essential to meet standards 2.1.4 Transport infrastructure 4.3 62%- good 38%- excellent 2.1.5 Cost and reliability of power 4.0 62%- goodInfrastructure supplies 10%- excellent 25%- fair 2.1.6 Availability and cost of real es- 3.3 30%- good tate 20%- fair 10%-not so good 2.1.7 Cost and reliability of communi- 4.4 62%- good cation 38%- excellentComments on transport infrastructure: ! Transport infrastructure has improved since the last 2-3 years: roads are generally good; Baybay-Ormoc-improved 6 years ago ! Port is okay but can be improved for bigger vessels to enter the port; only one boat going to Cebu; Port is shallow and can be improved ! Limited number of trucks available for transferring goods ! Transport in Baybay meets standards, however transport to Tacloban needs repair ! Land travel to other LGUs after 7pm is difficult (no more public transport after 5 or 6 pm) ! It will be excellent to have an airport in Ormoc (which is close to Baybay), so people don’t have to go to Cebu via Supercat to fly to Manila or elsewhere ! Having own ship to transfer goods/products is an advantage, but having a better port will be excellent ! Port of Baybay is generally good because it is not congested ! Farm to market roads are generally good; only 2-3 barangays need to be completely cemented and be connected ! Market facilities have improved but resulted to higher rental feesSummary Company Questionnaires Baybay 4
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on electricity: ! No long brownouts but the cost is high due to additional charges from LEYECO ! Linking/direct connection to NAPOCOR is a big advantage, cheaper power costs during hot peak hours (“time of use” system) and better reliability of power supply ! Power rates are high due to additional charges ! Reliability of power supplies is excellent except the cost which are too high ! Share of power costs in the total operations cost is low ! Power supply has improved in the last 3 yearsComments on real estate: ! Acquiring property/getting real estate is not a big problem, with available land at low cost close to downtown ! Cost of real estate in the downtown Baybay is getting higher ! Copra trading & Oil Mill: LGU facilitates well (assist possible investors) the acquisition of estate in the commercial area ! Abaca Pulp: Took couple of years of negotiation but its alright ! Gaming business( franchising): Not so easy to find location meeting PAGCOR’s requirements ! LGU assists well in the acquisition of real estate as the municipality believes its one way of promoting business friendly environmentComments on communication: ! Communication system is very good ! Prices for communication went down due to competition among the two tele- communication companies ! Access to mobile and landline services are quite good, except for some ar- eas that still have no mobile and landline coverageComments on other 2.1.8 Cost and quality of unskilled 4.3 60%- good labour 30%-excellentHuman Resou. 10%-fair 2.1.9 Cost and quality of skilled labour 3.9 25%- excellent 50%-good 10%-fair 10%-not so goodSummary Company Questionnaires Baybay 5
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on labour: ! Abaca Pulp: 60% in the production are from Baybay; although not so easy to get skilled labour ! People have some attitude problems towards work (tend to be lazy and want fast cash); but also depends on the manager as to how he/she motivates his/her people ! Low cost of labour, easy to train ! Easy to get unskilled labour; though skilled labour for machine operation are outsourced ! Skilled workers are mostly from Baybay ! Easy to deal with Baybay staff, and are easy to train ! Quality of skilled labour is good ! Not so easy to get well trained people ! Easily trainable but hope to help the unemployed ! Some have migrated to other area: Bohol, Camotes Island for employment 2.1.10 Access to training institutions 3.4 80%- fair 10%- not so good 2.1.11 Access to technical/ scientific (less than 3 re- (less than 3 re- support institutions sponses; average: sponses; rating: n.a) n.a) 2.1.12 Access to consulting services (less than 3 re- less than 3 responses; sponses; average: rating: n.a)BDS n.a) 2.1.13 Access to finance 3.2 70%-fair 10%-good 2.1.14 Performance of business asso- 2.4 20%-good ciations 20%- fair 40%- not so good 20%-negativeComments on training institutions ! Abaca Pulp/Oil Mill: Trainings are mostly “in house”/ on site ! Commercial bank: Training of staff are often done in Manila or Cebu ! Leyte State University(LSU) : trainings/seminar to farmers are accommo- dated upon request ! Access to vocational training school in Southern Leyte is okay ! Training are done “in house: - only those with basic technical knowledge on operations ! Training done outside BaybayComments on support institutions: ! LSU- is mandated to deal directly with LGUs, institutions not directly with the farmersComments on consulting services: ! Abaca Pulp: with good excellent partnership with foreign/int’l consultants ! Visayan Oil Mill: no consultants involved in the operations of the plant ! Gaming business: Consultants from Manila (PAGCOR)Summary Company Questionnaires Baybay 6
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on finance: ! Difficulties in getting capital because of the required collateral (4x) ! Commercial: It is difficult due to requirements; high interest ! Land bank: operating like a commercial bank; high interest also ! Some entrepreneurs/businessmen are afraid to avail of commercial loans due to high interest ! Micro finance: increasing number of micro finance players; increase in number of people availing loans (lower interest than in commercial banks) ! Many cooperatives in the area ! Some who are into micro finance services have weak financial management ! Access to capital is not relatively easyComments on business associations: ! No active business chambers/associations in the area ! JAYCEES- organized group but more on civic work ! Chinese business association- have strong cooperation among themselvesComments –other (performance of city government, officials): ! LGU is very supportive and cooperative with business sector ! Business climate is good; with initiatives in improving the business licensing process ! Mayor is supportive of Cooperatives ! LGU has maintained a good working relationship with LSU ! Not heard of rampant issue on “bribery”/under the table form of corruption ! LGU has some initiatives in attracting investors ! There is a cooperation between the Mayor and its SB MembersSummary Company Questionnaires Baybay 7
  • ANNEX 7
  • Summary Company Questionnaires : Palompon, Leyte Part 1: Basic information on the companies interviewed 1.1 – 1.6 Basic information on companiesSector/Sub-sector Tendency Investments Future in- Purchase Purchase Target markets turn over during last vestments raw mate- pre- five years rial fabricated inputsMicrofinance/lending Increasing Expansion/ Broaden Borrowers Local ventured into scope of mostly(multi purpose co- different eco- lending prod- localoperative) nomic activi- ucts ties: transpor- tation, hotel business, school, etcEducation in IT field Stagnating Procurement Add/offer other n.a Local; other of computers courses: elec- areas in the tri- Region cal/automobileEducation: maritime, Falling Origin of Local; National-IT students: up to Mindanao (in terms of local, na- enrolees) tionalElectronics Increasing Additional Venture into Products Local, Isabel, computers; internet café + from Cebu etc(retailing, trading) minor renova- additional tion of prem- store for elec- ises tronics“Danggit”/Dried fish Increasing Equipment for Local Local, Cebu,production & market- drying fish (if Manilaing with enough capi- tal/partnership with busi- nessman push through)Multi Purpose coop- Increasing Ventured into Local Localerative/lending various eco- nomic activi- ties: swine production, consumer store, water- melon produc- tionTrading Varies (de- pends)(copra, coca cola,San Miguel Prod-ucts)Agricultural supplies Increasing Expand hog local Local+ Cebu+ production Manila International: Summary Company Questionnaires Palompon 1
  • TaiwanTrading Falling Poultry Cebu Local productionPiggery Falling Upgrading of Restocking of Cebu Local, nearbybussiness/meat premises animals LGUsproductionCommercial banking Increasing Replacement Local; other of equipment LGUs in the RegionMobile/School Sup- Increasing Renovation of Expansion of Ormoc, Local, nearbyplies area premises Cebu, towns Manila Summary Company Questionnaires Palompon 2
  • 1.7 Number of permanently employed staff1 Six years ago Three years ago Actual number 20 25 42 n.a n.a 16 3 9 9 2 10 20 2 2 2 110 2 9 2 6Total 24 49 219Growth rate 79.6% 55%Part 2: Information on business environment and major constraints2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage) 2.1.1 Access to supplies 3.8 25%- excellent 25%-good 50%-fair 2.1.2 Consumer demand 4.5 25%- excellentSMEs 60%-good 15%-fair 2.1.3 Quality of products 4.0 10%- excellent 75%-good 10%- fair1 Only those companies which had already existed in 1998 are included here.Summary Company Questionnaires Palompon 3
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on supply situation: ! Mobile business: availability of stocks is sometimes difficult, specifically on parts ! Electronics: limited supply due to problems on working capital/limited resources ! “Danggit” production: supply is not a problem there is enough fish in Palompon, only the working capital is the problem ! Copra trading: few coconut; not having too many fruits ! Agrivet business: there is enough supply and with easy access ! Trading: Suppliers of corn and rice are at credit, that makes it more convenient ! Piggery, cow business: Abundant supply, supply is generally goodComments on demand situation: ! Mobile business: High demand for repair of cell phone, auto load service (big number for OFWs) ! Electronics: Demand is generally good, but could not cope with demand due to limited working capital ! Danngit production: very high demand since market is not limited to Palompon but to Cebu, Manila and other areas ! Commercial bank: increase in number of depositors ; many OFWs in Palompon; influx of dollar remittances, growing economy resulted to increase in number of clients ! Maritime education/courses: High demand but limited students can be accepted; Dutch company arrangement ! Agri supplies: Demand is not so good, affected by the national financial crisis ! Trading (copra, coke products, San Miguel products): Demand for San Miguel products is good; Copra: is just okay but not excellent ! Education (technology): Demand is not that good, need to improve facilities and better marketing strategy for the school to increase number of enrolees ! Multi-purpose cooperative: demand for micro finance lending is generally good in Palompon and in other areasComments on quality of products: ! Commercial bank: lending/deposits-products are basically developed by the Re- gional/national office; but upgrading facilities is needed for better quality of ser- vice ! Maritime education: quality of courses offered & graduates meets standards; ad- vantage of having a Dutch company as a partner ! Trading: quality meets standards ! Agri supplies: Quality is good ! Trading (copra): Good quality of copra in palompon ! Danggit production: quality of fish in Palompon is good, meets standards of cus- tomers ! Electronics: Quality of goods is good, mostly from Manila ! Technology college: Facilities need to be improved, for better quality of service ! PACCI: quality of service is good; operates like a commercial bank (with depos- its) ! Mobile business/Schools supplies: Quality is good, as products are mostly from Cebu, Manila, Ormoc CitySummary Company Questionnaires Palompon 4
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage) 2.1.4 Transport infrastructure 3.5 60%- good 25%- fair 10%- not so good 2.1.5 Cost and reliability of power 4.0 10%- excellent supplies 75%-goodInfrastructure 10%-fair 5%- not so good 2.1.6 Availability and cost of real es- 3.5 10%-excellent tate 25%-good 50%-fair 2.1.7 Cost and reliability of communi- 4.7 55%- excellent cation 40%-good 5%- fairComments on transport infrastructure: ! Port: deep water and newly upgraded ! Compared to years ago, roads have already been improved ! Farm to market road: most of the barangays are already connected ! Regular bus services to Tacloban and Ormoc ! Regular ferry service to Cebu ! Newly upgraded port ! Roads in barangays still need improvement ! Road to Plaridel is good ! Road to Matag-ob needs improvement ! Maintenance of roads is an issue ! Public market and stalls have improvedComments on electricity: ! Power rates are high due to additional charges ! Reliability of power supplies is excellent except the cost which are too high ! Share of power costs in the total operations cost is low ! Power supply has improved in the last 3 years ! Power connections from two different power lines ! Brownouts: manageable level ! Power cost is high; therefore not using aircon for operations (cost cutting measures implemented) ! There were recent power outages in PalomponComments on real estate: ! Acquiring property/getting real estate is not a big problem, with available land at low cost close to downtown ! Cost of real estate in the downtown Palompon is increasing ! 5 kms away from town proper- still high due to many OFWs buying land ! Costs: P500- 1000/hectare ! There are available estate but cost is becoming very expensive ! Obtaining residential land is becoming more difficultSummary Company Questionnaires Palompon 5
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on communication: ! Communication system is excellent ! Access to mobile and landline services are quite good, except for some ar- eas that still have no mobile coverage ! Communication is excellent; all Barangay Captains have mobile phones ! Mobile business: excellent signal, and makes auto load/e-load business profitable ! Communication is not a problem in Palompon; easy access within the Prov- ince and can even call overseasComments on other 2.1.8 Cost and quality of unskilled 4.3 40%- excellent labour 40%-goodHuman Re- 20%-fair 2.1.9 Cost and quality of skilled labour 4.0 10%- excellent 80%-goodsou. 10%-fairComments on labour: ! Unskilled labour are in abundance and cheap ! Enough skilled/ with available skilled workers ! Attitude is good and can be easily trained ! Given the limited industry; some people tend to go to other places for em- ployment ! Mobile repair services: Not difficult to find technical people, but finding hon- est ones is not easy ! Many graduates from Technology School; however not easily get hired ! Danggit production: fishermen wants fast cash; and tend to be lazy some- times ! Most unskilled labour are easy to train ! Skilled labour is not a problem in Palompon ! A lot of seamen in Palompon; mostly of those who own nice houses are OFWs ! People from Palompon are hardworking and easy to train 2.1.10 Access to training institutions 4.0 80%- good 10%- fair 2.1.11 Access to technical/ scientific - - support institutions 2.1.12 Access to consulting services - -BDS 2.1.13 Access to finance 3.5 40%-good 30%- fair 2.1.14 Performance of business asso- 1.2 17%- not so good ciations 83%- negativeSummary Company Questionnaires Palompon 6
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on training institutions ! Palompon Institute is successfully training seamen for the international market ! TESDA is active and supportive of SMEs in Palompon ! Commercial bank: trainings are done usually in Tacloban or Manila/Cebu ! Good access to training: (private and TESDA) ! Trainings at PIT prove to be helpful in business/for employment ! Trainings are not done by government agenciesComments on support institutions/organizations: ! PACCI:very active and cooperates with LGU in improving the local econ- omyComments on consulting services: ! Maritime education: partnership with dutch company/consultants ! No need of consultantsComments on finance: ! Considerable number of active cooperatives; increasing number of micro finance players ! Access to loans: problem is the collateral requirement ! Afraid to take risk and avail of bank loans: high interest and many requirements ! Difficulties in getting capital because of the required collateral (4x) ! Commercial: It is difficult due to requirements; high interest ! Access to capital is not relatively easy ! Interest rate is okay; except the requirementsComments on business associations: ! Fil- Chinese business association is not so active nowadays ! No active business associations/chambers in the areaComments –other (performance of city government, officials): ! LGU has done considerable improvements: infrastructure in the past ! Mayor is supportive of Cooperatives ! Not heard of rampant issue on “bribery”/under the table form of corruption ! LGU has actively implemented sustainable eco-system; but still growing con- cerns from fishermen ! The implementation of “One Stop Shop” can still be improved ! LGU assists well those who are starting business in the town proper/stallsSummary Company Questionnaires Palompon 7
  • ANNEX 8
  • Summary Company Questionnaires : Carigara, Leyte Part 1: Basic information on the companies interviewed 1.1 – 1.6 Basic information on companiesSector/Sub-sector Tendency Investments Future in- Purchase Purchase Target markets turn over during last vestments raw mate- pre- five years rial fabricated inputsMicro-finance/multi Increasing Extension of Source of Localpurpose cooperative site/hall depos- its/capital: localRice retailing Stagnating - - - - LocalRestaurant/Catering Increasing Upgrading of - Local - Localbusiness premisesPoultry business Increasing Upgrading of - Local Local premisesKnife making indus- Stagnating - - Local; Localtry/Blacksmith nationalTricycle business Increasing Replacement - Local (slowly) of unitsCommercial busi- Depends: Renova- Replacement Local; Local, nearbyness: pharmacy, sometimes, tion/Extension of machinery. Region 8 townsphotocopy center; increasing, of premises Acquisition ofbusiness center sometimes latest photo- fluctuating copierRice Milling Increasing Drier Local LocalDelicacies Increasing Big Oven for Processing Local Local, national candy produc- area tionFish selling Stagnating Extension of Local Local; national areaRetailing business Increasing Machine - Local, Reg Local; nearby (cashiers) 8 townsEducation: Courses: - Local; otherFisheries areas in Region 8Education: Man- Increasing Upgrading of Expansion of Local, Reg Local; Reg 8agement, IT Field premises premises; 8 additional hallCooperative/micro Stagnating - - Locallending(People’sorg) Summary Company Questionnaires Carigara 1
  • 1.7 Number of permanently employed staff1 Six years ago Three years ago Actual number 10 11 1 2 2 23 23 7 48 60 20 25 10 18 3 4 8 9 3Total 73 43 171Growth rate -41% 60%Part 2: Information on business environment and major constraints2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage) 2.1.1 Access to supplies 4.0 88%- good 12%-fair 2.1.2 Consumer demand 3.5 30%-excellentSMEs 55%-good 10%-fair 2.1.3 Quality of products 4.1 10%- excellent 55%-good 30%-fairComments on supply situation: ! Delicacies:Supply of carabao milk is sometimes short ! Grocery store: Supply comes mainly from Tacloban; with regular salesmen offer- ing products ! Commercial /business center: Equipment are mainly from Tacloban ! Poultry: there is an oversupply sometimes ! Knife making/Blacksmith: materials we get locally;sometimes from manila ! Supply of water in Carigara is excellent1 Only those companies which had already existed in 1998 are included here.Summary Company Questionnaires Carigara 2
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on demand situation: ! Delicacies: very high demand ! Rice milling: no problem in demand; working capital is the problem for rice farm- ers ! Commercial/business center : there is a local demand for other services like col- oured photocopying, digital photos, etc ! Restaurant/Meat/Poultry: good demand; most lucrative business ! Tricycle Drivers association: there is a good demand; but fuel prices are increas- ing ! Microfinance: demand is very high; low delinquency rate ! Eastern Visayas University: no. of enrolees have decreased ! Rice: there is an excellent demand for local rice ! Knife making/blacksmith: there is a demand from nearby LGUsComments on quality of products: ! Delicacies: quality is good; meeting standards ! Rice milling: quality of rice in Carigara is good ! Microfinance/Multi Purpose Coop: service to members is good ! Restaurant business: quality of our service is good ! Local farmers produce high quality of rice ! Holy Cross College: we offer high quality education to meet market demand; in- creasing number of enrolees from local and nearby LGUs 2.1.4 Transport infrastructure 4.0 100%- good 2.1.5 Cost and reliability of power 3.0 50%- good supplies 25%-fairInfrastructure 25%- not so good 2.1.6 Availability and cost of real es- 4.1 30%-excellent tate 50%-good 15%- fair 2.1.7 Cost and reliability of communi- 4.4 40%- excellent cation 60%-goodComments on transport infrastructure: ! Local market should be improved ! Port can still be improved ! Roads: 2nd lane is missing ! Port is shallow; limited vessels can enter ! Roads have improved ! Regular bus services to Tacloban and Ormoc City ! Most roads are cemented ! Roads are generally good in Carigara ! Poor market facilities; can still be improved ! Roads to barangays are generally goodSummary Company Questionnaires Carigara 3
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage)Comments on electricity: ! Power rates are high due to additional charges ! There were many brownouts recently ! Production depend on good supply of power; recent brownouts are becom- ing disturbing ! Brownouts are becoming more frequent compared to the last 2 months ! 20% of operational cost goes to power & electricity ! Additional charges are burden to users; higher cost compared to Cebu and ManilaComments on real estate: ! Acquisition and access to estate is not a problem in Carigara; relatively cheap outside Carigara proper ! Cost of real estate in barangays is low ! Cost of estate in downtown Carigara is increasingComments on communication: ! Communication system is excellent ! Access to mobile and landline services is good ! Communication is not a problem in Carigara; easy access within the Prov- ince and can even call overseas ! Getting a good signal in most places in Carigara ! With 2 towers of 2 mobile giant service providers – good signalComments on other 2.1.8 Cost and quality of unskilled 4.4 40%- excellentHuman Re- labour 60%- good 2.1.9 Cost and quality of skilled labour 4.2 25%- excellent 60%-goodsou. 15%- fairComments on labour: ! Unskilled labour are available; not a problem in Carigara ! Unskilled labour are cheap ! Enough skilled/ with available skilled workers ! Attitude is good and can be easily trained ! Skilled labour are available ! People of Carigara has good attitude towards work ! Fishermen need training to upgrade their skills 2.1.10 Access to training institutions 4.3 60%-good 40%-fairBDS 2.1.11 Access to technical/ scientific Less than 3 responses n.a support institutions 2.1.12 Access to consulting services Less than 3 responses n.aSummary Company Questionnaires Carigara 4
  • 2.1 How do you assess the following items with regard to your company? Item Average assessment by interviewees; 5 = excellent, 4 = good, 3 = fair, 2 = not so good, 1 = negative (Average Assessment/no. of interview- ees/percentage) 2.1.13 Access to finance 3.2 10% excellent 45%- good 25%- fair 20%- not so good 2.1.14 Performance of business asso- Less than 3 responses n.a ciationsComments on training institutions ! TESDA has been actively providing trainings/technical courses ! EVSU: Limited facilities; latest technology ! Funds is also a problem for operations of training institutionsComments on support institutions/organizations: ! Problem in Carigara is school of Fisheries; no practical learning opportuni- tiesComments on finance: ! Many active cooperatives in the area ! No commercial bank in the area ! Cooperatives are active and responsive to farmers’ needs ! Working capital is a problem ! Many people tend to get shark loan; which is high interest but fast cash ! Access to finance is not easy, do not have enough capitalComments on business associations: ! Tricycle drivers and fish vendors associations are active in Carigara ! Farmers association is quite active in CarigaraComments –other (performance of city government, officials): ! The new mayor is supportive of the cooperatives ! Focus of present administration is not into infrastructure ! Not heard of any issue on bribery ! New mayor, early to assess the performance ! Local taxes are affordable; but have increased this year ! Implementation of “One Stop Shop” is not fully implemented but processing of business license is only 2 days if with complete requirementsSummary Company Questionnaires Carigara 5
  • ANNEX 9
  • Plan of LRED – activities in Baybay: Documentation of group 1 Fields of Steps for Who? When? intervention implementationAddress 1. Establish one-stop- Mayor/VGV By Feb./Mar. 2005investment shoppromotion more 2. Establish LGU – Office Mayor/VGV By Feb./Mar. 2005systematically for Investment Promotion 3. Legislate investment VGV By Feb./Mar. 2005 for SMEs 4. Identify/define Group/VGV Mar. To June 2005 investment areas with proposals for every area 5. Update brochure Baybay Office for June to Sep. 2005 Investment Promotion 6. Make a business Baybay Office for June to Sep. 2005 directory Investment PromotionInitiate the 1. Organize Ad-hoc Mayor/VGV By Feb./Mar. 2005development of Tourism Committeelocal tourism (transport, food, entertainment, hotel) 2. Identify tourist areas Tourism Committee Mar. to May 2005 (historial, mountains, sports, island tour, ecopark) and consult with concerned agencies 3. Develop tour packages Tourism Committee May to July 2005 4. Organize travel Tourism Committee July to Sep. 2005 agencies 5. Promote packages Tourism Committee July to Sep. 2005 6. Train tour guides Tourism Committee July 2005 to Jan. (food, hotel workers, 2006 transport workers)
  • Plan of LRED – activities in Baybay: Documentation of group 2 Fields of Steps for implementation Who? When? interventionOrganize the 1. Make an inventory of LCE ! MTO By Feb./Mar.business businesses/ business 2005community establishments classified into commercial/industrial - wholesaler - retailer - support services 2. Call for a meeting in order LCE ! MPDC By end Mar. to organize the business 2005 community a) Encourage active participation in order to strengthen both civic and economic program b) Encourage them to participate in the Municipal Dev’t Council as NGO once organized c) Contribute to the dev’t of this town on the economic growth 3. Institutionalize/legalize the P.O. (People By end June existence of the business Organization) 2005 community (POs, NGOs)Develop 1. Creation of Economic Dev’t Local Dev’t Council By end Apr.comprehensive Plan Committee to be (LDC) 2005economic plan represented by various sectors of the community & gov’t. agencies 2. Making the development Economic Dev’t Plan May – Dec. plan: Committee (EDPC) 2005 a) Prepare agendy + send invitations re: meeting b) Conduct meetings using the Rapid Appraisal as reference c) Prepare & finalize the Econ. Development Plan
  • d) Presentation of the Econ.Development Plan to theLGU/LCE for approval andfundinge) Implementation
  • Plan of LRED – activities in Baybay: Documentation of group 3 Fields of Steps for implementation Who? When? interventionProvide 1. Data gathering on coconut OME is lead agency. Feb 1 – 8 2005information on the area and production PCA Jaime Nunez c/oprospects of Elena Sidqui + Ilesvirgin coconut oil Cernaproduction 2. Assess existing producers PCA & RCRC, Dr. Feb 8 – 28 2005 of VCO, market and Guarte technology 3. Identify the kinds of PCA & RCRC, Dr. Feb 8 – 28 2005 equipment/materials needed Guarte for virgin oil production and where to source them 4. Provide information to the GTZ-LIP, Dr. Guarte, Feb 5 – end of public on the usage features Roberto for funding yr. of virgin coconut oil 5. Provide LSU – NCRC & other Feb ’05 – ‘06 workshops/trainings to target multimedia material clientel 6. Identify linkage with funding Coco levy & financial Mar ’05 – Jan. institutions institutions ‘06 7. Encourage Visayan Oil Mill PCA with ccordination Last qtr. of 2005 to venture in virgin coconut oil of OMA production
  • ANNEX 10
  • Documentation LRED – workshop Palompon, 03.02.2005, page 1 Plan of LRED – activities in Palompon: Documentation of group 1 Fields of Steps for implementation Who? When? interventionImprove 1. Package plan for tourism MENRO, Raoul Bacalla Feb. 2005employment/ 2. Preparation of promotion LGU (MENRO), PACCI April 2005income generation materialsthrough tourism 3. Dissemination of LGU, Public Information July 2005 all year information thru print & Officer; William Merin round broadcast mediaDiversify use of 1. Collection of information Yoli, PACCI Feb. 2005coconut on coconut diversification from various agencies (PCA – LIP – LSU) 2. Crafting of terms of Yoli, PACCI April 2005 reference/project proposal on the conduct of seminar – workshop on coco diversification 3. Arrange with the LGU through DA July 2005 agencies re: sem inar workshop 4. Conduct of seminar/ LGU + Yoli Sep. 2005 workshop on coco diversification
  • Documentation LRED – workshop Palompon, 03.02.2005, page 2 Plan of LRED – activities in Palompon: Documentation of group 2 Fields of Steps for implementation Who? When? interventionAddress investment 1. Visit to existing SMED – Municipal Feb. 15 – 28,promotion Councils within Leyte (look at Administrator, 2005 structure, functions, members Councillor Jek Sanchez, etc.) MPDC R. Cartalla 2. Based on visits/findings Councillor Sanchez, March 1 - 30 creation of SMED Palompon Mun. Adm. Council a) Enabling legislation Councillor Sanchez, March 10 - membership/composition: Mun. Adm. - SB members (2) - Private sector (2) - NGO (2) - Academe (2) Chairman: LCE, Exe. Off.: Jerry b) Approval of SMED - Council Mun. Administrator April 1 - 15 (lead person) in consultation with LCE c) Identification of investment HRMO – Head, April 15 - 30 personnel as a support group Treasury, (adm. & technical) Assessor’s Office 3. Identify fields of investment (output group 1) 4. Conceptualize investment Department Heads and b.o. May promotion brochure employees of departments of Engineering, MENRO, MPDC 5. Put up a brochure on the MPDC + MA; Raoul b.o. June investment potential for Bacalla to write Palompon 6. Validation/editing of brochure MPDC b.o. July through DTI 7. Dissemination of brochure Chairman Tourism From August Council SB 2005 onwards
  • ANNEX 11
  • Plan of LRED – activities in Carigara: Documentation of group 1 Fields of Steps for Who? When? intervention implementationImproving 1. Organize the Lomen, Joel, MPDO 1st. week of April (9)conservation/ producers of nativepackaging of delicaciesdelicacies 2. Make/ prepare an Lomen, Yaning 4th. week of April inventory/ listing of native (30) delicacies in Carigara that would include the list of ingredients & life span of each 3. Request assistance Lomen, Betty, MPDO May 19th from DTI/DoST for the labelling/ enhancing of life span of the native delicacies 4. Conduct orientation/ Joel, Betty, Lomen, July 27th – 29th seminar on product MSWO packaging and product development 5. Choose which Lomen, producers’ Sept. 16th products (one or two) will group be submitted to DoST for “shelf life”
  • Plan of LRED – activities in Carigara: Documentation of group 2 Fields of Steps for implementation Who? When? interventionExchange of 1. Exposure visits to the Dir. Ed Belas e.o. March/ beg.experiences in following locations: (resource person) Aprilcoastal marinemanagement ! Samar (Basey): Hon. Baby - fish cage Hon. Gil - fish sanctuary Ronnie - seaweed farming EVSU Representative Nick (MPDO) ! Palompon: Pablo etc. - fish sanctuary - enforcement - alternative livelihood - mangrove protection - coral reef rehabilitation ! Bato: - seaweed farming - coral reef preservation 2. Reporting to a) the group, Hon. Baby April 15 - 30 b) the SB and c) the LCE a) Finding/analysis (What has been done? What made them successful? Comparative analysis) b) Recommendations 3. Decision making: LCE/SB e.o. June necessity, beneficiality and practicalityNegotiate with 1. Info/data gathering/ MPDO e.o. Februarycommercial compilation(universal) banks a) Profile of Carigara andto locate in neighbouring townsCarigara b) Compile the no. and type of financial institutions present 2. Make a list of banking MPDO Beg. March institutions a) Landbank b) Union Bank c) Other commercial banks 3. Conduct presentation to LCE Beg. April selected banks
  • Plan of LRED – activities in Carigara: Documentation of group 3 Fields of Steps for implementation Who? When? interventionPromote use of 1. Purchase organically MAO, Mr. Romy E. Marchorganic fertilizer tested fertilizer (gatheringin rice farming of info on tested fertilizer 2. Identification of pilot MAO March/April baranguay 3. Conduct briefing/ Kangara Mulitpurpose April consultation meeting with Coop. (KMPC), Ms. farmer leaders (suppliers) Sarah 4. Establish techno demo MAO May farm 5. Monitoring and evaluation MAO & KMPC June – Sept. of results 6. Info dissemination of MAO Oct. – Nov. results on techno demo farm: a) Production of info materials (simple literature) b) Consultation on specific issues re: organic fertilizerPromote 1. Identify alternative use of MAO with PCA Marchalternative use of coconut: (Thelma Remedio)coconut Expls: Virgin coconut oil, coco shell, wine, milk, vinegar, broom, activated carbon, charcoal bricks, coir 2. Link with other PCA (Thelma April government agencies for Remedio) technology 3. Participate in trade fairs KMPC (Sarah C.) June to October 4. Organize trade fairs in SB member Gil Lloren June to July Carigara 5. Link with Carigara KMPC (Sarah C.) Ongoing Livelihood Center to promote coco products
  • ANNEX 12
  • Reporting Format LRED: Visits to Municipalities AgendaName(s): Location Schedule:Objectives:!!!!!!Conclusions:!!!!!!Next steps:!!!!!!Other:!!!!!
  • PROGRAM MANAGEMENT Martina Vahlhaus, Program Manager H 10th Floor, German Development Center, PDCP Bank Centre Building, V.A. Rufino corner L.P. Leviste Streets, Salcedo Village, Makati City ( +63 2 8123165 (local 46) * SMEDSEP c/o GTZ-Office Manila, P.O. Box 2218 MCPO Makati City, Philippines 8 smedsep@mozcom.com Training Services Christian Widmann H 4th Floor, TESDA Central Office, East Service Road, Taguig, Metro Manila ( +63 2 8938297, 8405035, 8179095 (fax) 8 tesdagtz@mozcom.com Business and Financial Services Markus Ehmann, Business Development Services Harald Neimeier, Financial Services H 38 Acacia Street, Lahug, Cebu City, 6000 ( +63 32 4122256, 2344494 (telefax) 8 masmedsep@globelines.com.ph Deutsche Gesellschaft für Technical Education and Department of Trade GFA ManagementTechnische Zusammenarbeit Skills Development and Industry (GTZ) GmbH Authority