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  • Philippines: Crossroads-strategic-geographic
  • Background: For more than 300 years, Mindanao has never been at peace. A paragon of negative perception, a historical stigma, an island region enveloped by fear, mistrust and suspicion In 1970’s, inter-tribal disputes/misunderstandings over land issues generated hostilities and violence that eventually transformed Mindanao into a war zone. Threats, torture and violence, brutalities, displacements and expulsions divided Mindanawnons. Divisive tensions lead to attitude of suspicions, mistrust, fear, hatred and anger which prevailed even until now.
  • In addition: CAUSES Personalistic political leadership Incoherent development planning Inconsistent policies Lack of permanent and strategic mechanism Insufficient budget Development disparity Economic inequity
  • Recent changes in the global market place have opened windows of opportunities for Mindanao’s economy. General Agreement on Tariffs and Trade (GATT) provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce. GATT’s success in reducing tariffs to such a low level, combined with a series of economic recessions in the 1970s and early 1980s, drove governments to devise other forms of protection for sectors facing increased foreign competition. The globalization of the world economy was underway, trade in services — not covered by GATT rules — was of major interest to more and more countries, and international investment had expanded. The endorsement of the GATT by some 120 countries including the Philippines has lead to the creation of the WTO. The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The agreements were negotiated and signed by governments. But their purpose is to help producers of goods and services, exporters, and importers conduct their business. The agreements were negotiated and signed by governments. But their purpose is to help producers of goods and services, exporters, and importers conduct their business. The ASEAN countries are also committed to accelerate tariff reduction through the CEPT. These new trade pacts have the overall effect of enlarging the potential markets for Mindanao’s goods and services, The participation of the island in the BIMP-EAGA will not only enhance its market outlets but will widen its possibilities for engaging in joint economic activities with its neighbors. Also, important developments in the peace front are about to take place such as nearing the signing of the 1996 Final Peace Agreement.
  • Mindanao is strategically located in Asia and President Arroyo in one of her speeches has called Mindanao the country’s gateway to the ASEAN and to the Brunei Darussalam-Indonesia-Malaysia-The Philippines East ASEAN Growth Area (BIMP-EAGA). The four member-countries saw it as a key strategy to accelerate development in the subregion by increasing trade, investments and tourism within the area by facilitating freer movement of people, goods and services; rationalizing the development of vital infrastructure; promoting joint business opportunities; and coordinating the management of ecosystems and common resources to ensure sustainable development.
  • Mindanao has strategic importance to ASEAN in terms of trade access and trade flows…particularly crude oil.
  • Mindanao sea and marine areas are major entry and exit point for sea-based trade in Southeast Asia.
  • Mindanao is part of the Coral Triangle. The Coral Triangle is a geographical term referring to the tropical marine waters of Indonesia , Malaysia , Papua New Guinea , Philippines , Solomon Islands and Timor-Leste that contain at least 500 species of reef-building corals in each ecoregion . The Coral Triangle is considered to be the global epicenter of marine biodiversity, and a global priority for conservation. BIMP-EAGA’s Sulu-Sulawesi Seas is the heart of the Coral Triangle which in turn is the heart of the world’s marine biodiversity. BIMP-EAGA, therefore, is the heart of the world’s terrestrial and marine biodiversity and BIMP-EAGA is taking serious steps to protect, conserve, and sustainably manage these natural resources. Two major environment management projects are currently being implemented by BIMP-EAGA. The more recent project is the Heart of Borneo Initiative which aims to establish a network of protected forest areas in Borneo Island. Meanwhile, the agreed action plans for the Sulu-Sulawesi Marine Ecoregion project is well underway.
  • Mindanao contributes a fairly big share of the country’s pie for agricultural output; 1/3 of our land area is devoted to agriculture; Agri sector is our biggest employer;51% of Mindanao’s labor force is engaged in agricultural activities; We contribute more than 1/3 of the country’s requirements for agricultural & fishery products.
  • The slide shows the existing industries in Mindanao, by region. A number of our banana plantations are mostly found in region XI i.e. Lapanday, Stanfilco, etc. Large pineapple plantations are found in Bukidnon and Polomolok (Del Monte; Dole Phils.; Marsman Drysdale) Heavy manufacturing industries are mostly found in Region X (NSC, Iligan Cement,Petronas) and Region XI (PJACC, DUCC) Tuna Capital – General Santos City in Region XII; we have more than 7 canneries in GSC Other large industries present in Mindanao – Nestle Phils; RFM Corp., Universal Robina Corp.,Asia Brewery, Cargill Phils; Coca-Cola; San Miguel, Hoechst, Vitarich
  • Here we see, Mindanao’s potentials: Mindanao’s strategic location in Asia Pacific makes it a potential hub for transport, business, and telecommunications, among others. Mindanao in BIMP-EAGA was dubbed as Asia’s playground in the 21st century due to our exquisite tourism assets, rich water resources and conducive climatic condition. Mindanao’s rich soil and typhoon-free climate allows us to produce bountiful agricultural and fishery products.
  • Mindanao registered a 4.0 percent GRDP Growth in 2008, a little bit higher than the national average of 3.8%. Philippine economy grows by 3.8 percent The Philippine economy managed to grow by 3.8 percent in 2008 amidst the early inroads made by the global financial meltdown, the onslaught of several typhoons that hit the country during the year and the peace and order problems in Mindanao. The 3.8 percent growth was a deceleration from the 7.1 percent achieved during the high growth period of 2007. Major contributors to growth were manufacturing, agriculture and fishery, TCS, and private services. All of the major sectors decelerated in 2008 relative to 2007. Agriculture, fishery and forestry (AFF) slowed down from 4.8 percent in 2007 to 3.2 percent in 2008. Industry posted a deceleration from 6.8 percent in 2007 to 5.0 percent in 2008 while the service sector significantly slowed down from 8.1 percent to 3.3 percent. Economic Performance by Major Island Among the island groups, Luzon contributes the largest share to the country’s GDP Slower growth of Western and Central Visayas weaken Visayas’ economy The economic growth of the Mindanao island group decelerated from a 7.0 percent growth rate in 2007 to a 4.0 percent growth in 2008 as the economy of all its six regions slowed down. Northern Mindanao posted the highest growth rate at 5.3 percent while ARMM registered the lowest at 1.9 percent in 2008.
  • The slide showed the Gross Regional Domestic Product and their growth rates of the various regions in Mindanao. Economic Performance of the Regions: Zamboanga Peninsula’s economy registered a decelerated growth of 2.2 percent in 2008 from 7.2 percent in 2007. This was largely due to the substantial slowdown of AFF Northern Mindanao’s economy posted the fastest growth rate among the country’s 17 regions at 5.3 percent in 2008, albeit a slowdown from its 7.7 percent growth in 2007. The listless performance of the industry and service sectors, which outweighed the robust performance of the AFF sector, brought about the slowdown in the region’s economic performance. Davao Region’s economy decelerates from a 6.6 percent growth in 2007 to 3.7 percent in 2008. The slowdown was brought about by slower growth in industry and service sectors. The economy of SOCCSKSARGEN Region grew at a slower pace by registering a 4.6 percent growth in 2008 from a robust performance of 6.7 percent in 2007. The deceleration was contributed by the slowdown in all three major sectors. Caraga’s economy decelerated by 4.5 pecentage points from 7.7 percent growth in 2007 to a 3.2 percent growth in 2008 due to the slowdown in the industryand service sectors and a contraction in the agriculture, fishery and forestry sector. ARMM’s economic performance decelerated to 1.9 percent in 2008 from a 5.4 percent growth in 2007 brought mainly by the slump in agriculture and fishery.
  • In the past decade, there was an observed increase in the share of Mindanao’s industry and services sectors.
  • Mindanao’s export earnings reached US$2.6 billion in 2007, the highest in the last 14 years. Mindanao is likewise a consistent net exporter from 1994 to 2007. Factors affecting exports include the Asian Financial Crisis in 1997, the drought and floods brought about by the El Nino and La Nino phenomenon in 1997-1998 since Mindanao’s exports are agricultural products. Top exporters were Region XI and X with Region X outranking Region XI in 2006.
  • Mindanao’s total export earnings as of September 2009 decrease by 33.12% with a value of US$1.63 billion from US$2.43 billion during the same period in 2008. Likewise, Mindanao’s total imports registered a decrease of 28.77% from US$1.39 billion to US$993.17 million as of September 2009. As of September 2009, Mindanao’s total trade posted a decrease of 31.53% which registered at US$2.62 billion (FOB value) as compared to US$3.82 billion in the same period last year. The decreases in export performance can be attributed to the effects of the global financial crisis. As reported by UNCTAD, world trade began to slow down in 2007 and has been shrinking at a fast rate since November 2008 in both volume and value as a result of the economic recession that began in the United States. Trade volume growth decelerated first in the United States and other developed countries1. Moreover, the export cargo was adversely affected by the global downturn, losing as much as 6.90 MMT or 20.66% during the year while import cargo slipped by about 2.05 MMT or 4.14%. The lower demand for prime export commodities such as mineral ores, nickel ores, lime, cold rolled coils and coco oil, etc. was evident in the sharp decline of foreign cargo throughput at the following gateway ports of Mindanao: Cagayan de Oro - 4.03 MMT; Surigao - 4.14 MMT; and Nasipit - 0.61 MMT1. _______________________ 1 Presented by Mr. Raul T. Santos, Asst. to the GM for Corporate Affairs and Special Projects during the Mindanao Shippers’ Conference held in Cagayan de Oro City, November 26, 2009.
  • SLIDE SHOWS MINDANAO’s TOP EXPORTS AND IMPORTS EXPORT PERFORMANCE Coconut (copra), palm kernel or babasu oil is Mindanao’s top export commodity for 2009 with18.29% share of its total export revenue Coconut (copra), palm kernel or babasu Oil (both crude and refined) ranked as the top export earner which has an 18.29% share of Mindanao’s aggregate export revenue. It registered a value of US$297.32 million as of September 2009, a 56.48% decrease from US$683.24 million during the same period in 2008. Fresh Banana ranked second top earner with a share of 17.23% and an aggregate receipt of US$279.98 million which registered a decreased of 15.91% as compared to US$332.96 million during the same period in 2008.   Tunas, prepared or preserved , ranked third with total export revenue of US$193.44 million reflecting a 11.33% decrease from US$218.15 million in 2008. Other top earners as of September 2009 were preserved pineapple : US$104.88 million; Nickel Ores and concentrates : US$91.05 million; Iron or agglomerates (sinters) : US$64.22 million, Fruit & vegetable juices : US$62.64 million, Frozen Tuna : US$45.90 million, Organic Chemicals : US$44.94 million and Pineapple (fresh) : US$40.24 million. Among the top 20 export commodities, food products as well as non-food products were not spared from the economic crunch except for fruit and vegetable juices, molasses, activated carbon and gold which registered positive increases at 16.55%, 94.08%, 22.55% and 5.97%, respectively. Non-food products registered highest decline for the period January to September 2009 as compared to the same period in 2008: Organic Chemicals registered (-59.87%), Portland Cement (-59.77%), Coconut, palm kernel or babasu oil (-56.48%) and Natural Rubber (-47.68%). Food products such as banana, tuna, pineapple and desiccated coconut were among the food items that registered negative in terms of growth rate. IMPORT PERFORMANCE Rice remains to be our top import commodity in Mindanao which registered at US$189.36 million or a decrease of 53.41% as compared to the same period in 2008 which registered at US$406.40 million. Non-food items such as Semi-finished products of iron or non-alloy steel declined by 85.22% followed by Copra at 77.50% and Polymers of ethylene, in primary forms registered at 75.14%, among others. Moreover, food items such as Rice, Milk and Cream and Coffee also registered decreases at 53.41%, 45.97% and 14.74%, respectively.
  • In spite of the global recession, the Board of Investments (BOI) registered a total of 31 investment projects in Mindanao for 2009 with a total investment value of PHP 4.701 billion. Investments in the various sector has provided 2,909 opportunities for employment spread among the different regions in Mindanao .
  • Largest bulk of investments in 2009 is on Property Development (Mass Housing)-48% or around 1.9 Billion of investments Then followed by Mining investments in Isulan, Sultan Kudarat – 1.1 Billion worth of investments in gold processing Various agri-agribusiness projects in various regions with 14% share or around 560 Million peso investments Then followed by power generation, ship repair, tourism (Deca Wakeboarding in Davao City) and also investment in export/trade related activities
  • Ten years ago, the total visitor arrivals in Mindanao posted at 1.92 million which composed of domestic visitors and foreign visitors at 1.78 million and 146,172 visitors, respectively. Its average growth rate since 1998 posted at 11.08%. As 2007, it posted an increase of 61.73% growth as compared to the previous year. Domestic and foreign visitors also increased by 61.30% and 69.42% respectively.
  • Copper, gold 2008 Apex Mining Corporation located in Maco, Compostela Valley, Philippine Mining Development Corporation 2007 Oriental Synergy Mining Corporation in Dinagat Island- Chromite Philippine Japan Active Carbon Sultan Energy Philippines Corporation in Lake Sebu, Cotabato City – Coal-Mining MG Mining and Energy Corporation- Bislig Corporation, Surigao Del Sur TVI – Siocon, Zamboanga Data showed that nickel reserves in Mindanao has a value of $215 billion, copper reserves with $6.49 billion, and $2.01 billion for gold. Mindanao, too, accounts 48 percent of the country’s gold reserves and 83 percent for nickel .
  • Specific Recomms: Develop Mindanao to be a focal part of the Philippine Cyber Services Corridor Attract investments in BPO, contact center, animation, software development & medical transcription
  • The Mindanao Transport sector composed of roads and bridges, airports and base ports. There are 3 alternate international airports in Mindanao which includes Davao, Zamboanga and General Santos airports. 12 Major ports in Mindanao includes: Zamboanga, Ozamis, Iligan, Cotabato, Cagayan de Oro, Davao, General Santos, Surigao, Nasipit, Polloc, Bongao and Jolo. The Strong Republic Nautical Highway (SRNH) of the National Government, offers an efficient and shorter way to travel to the Visayas and Mindanao regions. Transport cost from Mindanao through the Visayas to Luzon shall be reduced. It has reduced travel time by 10 hours, and reduced cost by 40% for passengers and 30% for cargo. The National Highway System shall be completed through these highly priority routes. About 62% of the roads in Mindanao were paved and only 38% remained unpaved.
  • As of December 31, 2008, 63.84% of National road network in Mindanao is paved. Real Drivers of economic development: facilitates mobility and enhances transportationof goods , people, commodities; encourages productivity.
  • Total No. of Bridges in Mindanao is 1,580. Breakdown as follows: Concrete = 1224 Steel = 150 Bailey = 151 Timber = 177
  • FS of the Mindanao Railway System is ongoing. Reinforces highways, expressways, bridges and railways development of logistics hub:
  • 8 provinces will be affected; 35% of Mindanao’s LGUs located in coastal areas
  • Earthquake Zone Mindanao lies in the The Pacific Ring of Fire (or sometimes just the Ring of fire) The “Ring of Fire” is an area where large numbers of earthquakes and volcanic eruptions occur in the basin of the Pacific Ocean. In a 40,000 km horseshoe shape, it is associated with a nearly continuous series of oceanic trenches, volcanic arcs, and volcanic belts and/or plate movements. The Ring of Fire has 452 volcanoes and is home to over 75% of the world's active and dormant volcanoes. It is sometimes called the circum-Pacific belt or the circum-Pacific seismic belt.
  • Landslide prone areas
  • Implications to the Philipines and Mindanao
  • Investment security
  • - Linked to the NUC recommendations, as shown by both the USAID and AusAID Studies done in 2003 and 2008, respectively
  • Mindanao

    1. 1. MINDANAO
    2. 2. Presentation Outline <ul><li>Mindanao in the Past </li></ul><ul><li>Mindanao Today </li></ul><ul><li>Mindanao’s Continuing Challenges </li></ul><ul><li>Mindanao 2020 Peace and Development Agenda </li></ul><ul><li>Mindanao Development Authority </li></ul>
    3. 3. Philippines and the rest of the World Philippines
    4. 4. Mindanao Sarangani Sultan Kudarat North Cotabato Zamboanga del Norte Zamboanga Sibugay Zamboanga del Sur Zamboanga City Isabela City Lanao del Norte Bukidnon Missamis Oriental Missamis Occidental Camiguin Davao del Sur Samal Is. Digos City Davao City Surigao del Sur Agusan del Norte Basilan Sulu Lanao del Sur Maguindanao South Cotabato Agusan del Sur Compostela Valley Davao del Norte Tagum City ARMM Region IX Region X Region XI Region XII Region XIII Gen. Santos City Mindanao Land Area: 133,656 sq. km Composition as of June 2009 6 Regions, 26 Provinces, 27 Cities, 425 Municipalities, 10, 065 Barangays
    5. 5. Mindanao in the Past
    6. 6. Mindanao in the Past <ul><li>Erratic and Intermittent Development </li></ul><ul><li>Sluggish and fragmented economy, growing at an average rate of 1.9% from the mid seventies to the early nineties </li></ul><ul><li>No coherence in planning, no consistency in policy support and no continuity in project implementation </li></ul><ul><li>Limited employment opportunities and falling incomes </li></ul><ul><li>Widespread and chronic poverty </li></ul>
    7. 7. <ul><li>* Backwater role of Mindanao as food and raw material supplier for Metro Manila and Cebu </li></ul><ul><li>Enclave nature of Mindanao’s predominantly agricultural economy </li></ul><ul><li>Intra and interregional trade within the island hardly occurred as regions were not physically connected to one another </li></ul><ul><li>Unstable peace and order situation </li></ul>Factors behind this vicious cycle of underdevelopment
    8. 8. <ul><li>Physically integrate Mindanao’s economy </li></ul><ul><li>Increase global competitiveness of Mindanao’s products </li></ul><ul><li>Ensure broad-based and people centered development </li></ul><ul><li>Put in place safeguards for the judicious use and management of resources </li></ul><ul><li>Strengthen Mindanao-wide institutions </li></ul>Recommendations in the Mindanao 2000 Devt Framework Plan (Sectoral)
    9. 9. <ul><li>A sustained growth rate of 7% </li></ul><ul><li>A shift from mere raw material production to agri-industrialization (indicated by a decrease in GVA for Agri by 11% as GVA for Industry increase by 13%) </li></ul><ul><li>An increase in per capita income in 1985 prices to PhP 20,028 by 2010 </li></ul><ul><li>An increase in number of employed persons from 5.9M to 8.3M (95%) </li></ul><ul><li>A reduction in poverty incidence (down to 15%) </li></ul>MINDANAO 2000 Development Targets
    10. 10. Mindanao Today
    11. 11. BIMP-EAGA GOAL TRADE, TOURISM, and, INVESTMENTS Mindanao and Palawan are included in the BIMP-EAGA focus areas. (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area ) POPULATION : 57.5 million LAND AREA : 1.6 million sq. km Strategically located in Asia
    12. 12. Mindanao, Gateway to ASEAN: Crude Oil Trade Flow (Sea-Lanes) Mindanao
    13. 13. Mindanao A Major Entry and Exit Point for Sea-based Trade Mindanao, Gateway to ASEAN:
    14. 14. Mindanao Mindanao, Gateway to ASEAN: A Major Entry and Exit Point for Sea-based Trade
    15. 15. Mindanao is within the Coral Triangle
    16. 16. Source of Raw Data: NSCB/GVA per sector Processed by: MEDCo Secretariat Mindanao is an Agri-based Economy Major Regional Agri Products oil palm <ul><li>One-third of Mindanao’s land area is devoted to agriculture </li></ul><ul><li>One-third of the labor force is employed in the agriculture, fishery and forestry sectors. </li></ul><ul><li>Contributes more than 30% of the national food requirements </li></ul>pineapple canned sardines seaweed banana tuna
    17. 17. Region 13 Banana, Palm Oil, Coffee, Fish/Fish products, Citronella Oil, Wood & Wood Products Region 9 Processed fish products, Rubber, Seaweeds, Bottled Sardines, Ceramics, Shellcrafts SOURCE: DTI Major Industries Region 10 Pineapple, High-value crops&vegetables, Aqua-marine, Tourism, Fiber-base (silk, abaca) Region 11 Banana, Coconut, Processed fruits, Processed food products, Wood Industry, Housewares Region 12 Rubber, Palm Oil, Pineapple, Processed Fruits, Fish/Fish Products ARMM Seaweeds, Fish/fish products
    18. 18. <ul><ul><li>world-class vacation destinations </li></ul></ul><ul><ul><li>cultural attractions </li></ul></ul><ul><ul><li>colorful festivals </li></ul></ul><ul><ul><li>pristine beaches </li></ul></ul><ul><ul><li>excellent diving </li></ul></ul>Mindanao’s exquisite tourism assets
    19. 19. Mindanao: A food producing Agri-based Economy Source: Bureau of Agricultural Statistics (BAS) Prepared by: MEDCo Secretariat Commodity 2007 Volume of Production (in MT) 2006 Volume of Production (in MT) Growth Rate (%) % Share to Philippine Total Rubber 404,052 351,280 15.02 100.00% Pineapple 1,758,437 1,587,459 10.77 87.20% Banana 5,891,658 5,261,698 11.97 78.72% Coffee 73,173 77,666 -5.79 74.76% Cassava 1,416,661 1,315,897 7.66 73.30% Commodity 1 st Sem 2009 Volume of Production (in MT) 2008 Volume of Production (in MT) 2007 Volume of Production (in MT) Growth Rate (%) % Share to Philippine Total Palay 1,710,681 3,835,275 3,741,141 2.52 22.81% Corn 1,378,406 3,669,073 3,766,915 -2.60 52.97% Fish 252,200.4 2,154,858 2,021,956 6.57 43.39% Livestock 140,935.96 689,793 670,316 2.91 29.83% Poultry 55,438 259,523 251,942 3.01 19.65%
    20. 20. * at constant 1985 prices GRDP Growth Rate, Min vs. Phil (1995-2008) Mindanao’s GRDP average annual growth : 1995-2008: 4.41% Source: National Statistical Coordination Board (NSCB)
    21. 21. Regional Share to GRDP Year 2008 vs 2007 (in thousand pesos) Source: NSCB * Using constant prices REGION 2008 GRDP 2007 GRDP Growth Rate (%) Percentage Share to Mindanao Total IX 35,805,948 35,041,838 2.2 14.24 X 71,169,547 67,557,449 5.3 28.30 XI 63,986,599 61,675,857 3.7 25.44 XII 49,938,891 47,721,516 4.6 19.86 Caraga 18,486,991 17,921,043 3.2 7.35 ARMM 12,129,430 11,903,558 1.9 4.82
    22. 22. Sectoral Share to the Mindanao Economy (at constant prices) Source: National Statistical Coordination Board (NSCB), GRDP as of July 2009 36% 36% 28% 2008 GVA 33% 42% 25% 1994 GVA
    23. 23. Increased Trade Source of Raw Data: NSO Processed by: MEDCo Secretariat Average Annual Growth Rate (2001 - 2008): Exports: 15.94% Imports: 19.24%
    24. 24. Mindanao Trade Performance Q1-Q3,2009 vs 2008 (in Billion US Dollars FOB Value) Source: National Statistics Office (NSO) - Central Prepared by: MEDCo Secretariat Note: BOT-G –Balance of Trade in goods, FOB- Freight on Board FOB Value (in Billion US Dollars) Global recession effect : Mindanao exports decreased by 33% and imports by 29%.
    25. 25. Source of basic data: NSO Processed by: MEDCo Secretariat TRADE: Mindanao’s Major Commodities … January to September 2009 Top 20 Export Commodities Share to Mindanao Total (%) FOOD Bananas, including plantains, fresh 17.23 Tunas , prepared or preserved 11.90 Pineapples, prepared or preserved 6.45 Fruit and vegetable juices, unfermented 3.85 Tunas, frozen 2.82 Pineapples, fresh 2.48 Desiccated Coconut 1.90 NON-FOOD Coconut (copra), palm kernel or babassu oil , both crude and refined 18.29 Nickel ores and concentrates 5.60 Iron or agglomerates (sinters) 3.95 Organic Chemicals (lauryl alcohol,cetyl alcohol and stearyl alcohol) 2.77 Organic surface-active agents (other than soap) 2.24 Oil-cake and other solid residues, of coconut or copra 1.53 Activated carbon 1.19 Pulps of fibres from Abaca 1.17 Natural rubber 1.01 Top 20 Imported Commodities Share to Mindanao Total (%) FOOD Rice 19.07 Wheat and Meslin 9.14 Fish, frozen, excluding fish fillets and other fish meat 4.23 Milk and cream 2.83 Coffee, whether or not roasted or decaffeinated 2.24 Maize (corn) 1.82 NON-FOOD Petroleum oils and oils obtained from bituminous minerals, other than crude 4.88 Uncoated kraft paper and paperboard 4.88 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products 3.12 Urea 2.94 Other uncoated paper and paperboard 2.64 Oil-cake and other solid residues, resulting from the extraction of soya bean oil 2.34 Liquefied Petroleum Gas 2.03 Copra 1.55 Semi-finished products of iron or non-alloy steel 1.55 Coal 1.41
    26. 26. BOI-Registered Investments for 2009 *preliminary figures 4.7 Billion worth of investments in 2009 generating 2,909 jobs No. of Projects Project Cost* In Million Pesos Employment Generated* REGION IX 1 1.5 8 REGION X 11 1,353.2 1,381 REGION XI 11 1,397.4 811 REGION XII 5 1,770.8 465 CARAGA 3 179.0 244 TOTAL 31 4,701.9 2,909
    27. 27. 2009 BOI-Registered Investments Sector Distribution 2009 TOP 3 INVESTMENTS *property dev’t *mining *agriculture/ agri-business ventures
    28. 28. TOURIST Arrivals from 2001-2008 (in millions) Source of raw data: DOT Regional Offices Prepared by: MEDCo Secretariat Average AnnualGrowth Rate (2001 - 2008): 10.8%
    29. 29. More flights, cheaper fares Available Routes To and From Cebu City Available Routes To and from Manila Butuan City Cagayan de Oro City Cotabato City Davao City Dipolog General Santos City Zamboanga City Pagadian City Butuan City Cagayan de Oro City Cotabato City Davao City Dipolog General Santos City Ozamis Siargao Surigao Zamboanga City Pagadian City Available Routes To and From Zamboanga City Jolo, Sulu Tawi-tawi
    30. 30. <ul><li>The country is anticipating the operation of several mining firms this year and the infusion of about US$15 Billion investment until 2013 which would create new jobs for engineers, mining laborers and other related workers. </li></ul>Source: DOLE Mining: Potential for Growth
    31. 31. <ul><li>As of 2008, the Philippines generated a total of US$ 4.5 billion+ in BPO revenues </li></ul><ul><li>Global demand will reach US$ 180 billion in 2010. </li></ul>Business Process Outsourcing Source of raw data: BPAP, 2006 <ul><li>Philippines is forecasted to earn US$ 11 billion and employ 900,000 people by 2010 </li></ul><ul><li>Mindanao will draw more investments in the next few years as the island’s operating costs are relatively lower than the other island groups. </li></ul>
    32. 32. Sarangani Zamboanga del Norte Zamboanga Sibugay Lanao del Norte Misamis Oriental Misamis Occidental Camiguin Davao Oriental Davao del Sur Surigao del Sur Surigao del Norte Basilan Sulu Tawi-Tawi South Cotabato Zamboanga City Cotabato City Davao del Norte Cagayan de Oro City North Cotabato Zamboanga del Sur Compostela Valley Agusan del Norte Agusan del Sur Ipil Pagadian City • • • • Dipolog City Ozamis City Iligan City Butuan City Surigao City • • • • • • Maramag Kabacan Gen. Santos City • • • Tacurong Koronadal • • • Palimbang Maitum • Mati Lanao del Sur • • • • Tagum City Davao City Existing Paved Road On-going Road Project LEGEND: Source of Basic Data: DPWH, CAAP, PPA International Airport Base Seaport DIPOLOG- DUMAGUETE RORO MAMBAJAO-JAGNA RORO SURIGAO CITY-LILOAN RORO Zamboanga-Lamitan RORO Zamboanga-Siasi RORO Zamboanga-Bongao RORO Zamboanga-Sta. Maria RORO Western Nautical Highway Eastern Nautical Highway Central Nautical Highway Bukidnon Sultan Kudarat Integrated transport network system now in place CORTES-TANDAG-MARIHATAG MARIHATAG-HINATUAN-BISLIG SECTION Road Project for Funding
    34. 34. National Roads Development (As of December 31, 2008) Source: DPWH Processed by: MEDCo Note: ARMM Data not included since its not under DPWH Mandate As of 2008, 63.84% of National Roads in Mindanao is paved Area Paved (Km) Unpaved (Km) % of Roads Unpaved Luzon 11,191.46 5,619.66 36.87 Visayas 5,939.11 1,339.73 19.73 Mindanao 4,545.96 2,575.05 36.16 Region IX 859.40 359.40 29.49 Region X 1,178.55 537.25 31.31 Region XI 942.20 505.29 34.91 Region XII 846.72 536.65 38.79 Caraga 719.09 636.46 46.95
    35. 35. Bridges Inventory (As of December 31, 2008) Source: DPWH Processed by: MEDCo Note: ARMM Data not included since its not under DPWH Mandate Total No. of Bridges in Mindanao is 1,580 . Breakdown as follows: Concrete(1224), Steel(150), Bailey(151), Timber(177) Area Total No. of Bridges Luzon 4,051 Visayas 2,127 Mindanao 1,580 Region IX 237 Region X 360 Region XI 252 Region XII 284 Caraga 447
    36. 36. Mindanao Railway The Mindanao Railway System Feasibility Study is ongoing.
    37. 37. Source of Raw Data: NIA Processed By: MEDCo Secretariat Status of Irrigation Development As of December 31, 2008 As of December 31, 2008, Mindanao Irrigation Development is at 37% Island Potential Irrig. Area (‘000ha.) Service Area (‘000ha.) Irrigation Dev’t. (%) Luzon 1,834,950 1,005,363 54.79% Visayas 332,370 164,235 49.41% Mindanao 959,020 350,344 36.53% PHILIPPINES 3,126,340 1,519,942 48.62%
    38. 38. Access to Electricity has improved Source of Raw Data: NEA Processed by: MEDCo Secretariat Note: Brgy. Access Levels include on and off grid % of households connected in 1994 based on the Mindanao 2000 Plan estimates na – no available data Status of Barangay Electrification (as of Feb 2010) Region Potential Brgys. Brgys. With access Brgys. Without access Brgy Electrification Level (%) (as of Jan 2010) IX 1,904 1,901 3 99.84% X 2,020 1,955 65 96.78% XI 1,160 1,160 0 100% XII 1,194 1,191 3 99.75% ARMM 2,459 2,426 33 98.66% Caraga 1,310 1,309 1 99.92% Mindanao 10,047 9,942 105 98.95%
    39. 39. MINDANAO POWER SITUATION 2007 Grid Capacity and Generation Capacity Mix Generation Mix INSTALLED CAPACITY: 1933 MW 7800 GWh Note: excluding SPUG generation
    40. 40. Mindanao’s Continuing Challenges
    41. 41. Source of Raw Data: NSCB Processed by: MEDCo Secretariat Note: … not yet created Poverty remains to be one of Mindanao’s daunting challenges Poverty Incidence Among Families (%) Areas 1994 2003 2006 Percentage Point Change Philippines 35.5 24.4 26.9 2.5 Mindanao 47.6 37.7 38.8 1.1 Region IX 44.7 44.0 40.2 (3.8) Region X 49.2 37.7 36.1 (1.6) Region XI 40.3 28.5 30.6 2.1 Region XII 54.7 32.1 33.8 1.7 Caraga … 47.1 45.5 (1.6) ARMM 60.0 45.4 55.3 9.9
    42. 42. * HDI= Long and healthy life (life expectancy), Knowledge (Simple Literacy, Combined enrollment ratios), Decent standard of living (adjusted per capita income) An index that is closer to 1, the better the standards of living, closer to 0 means a lower standard of living Source of Raw Data: 2005 Philippine Human Development Report, HDN Processed by: MEDCo Secretariat Relatively slight improvements in the quality of life in Mindanao HUMAN DEVELOPMENT INDEX (HDI)* AREAS 1994 2003 % Change Philippines 0.739 0.758 2.57 Mindanao 0.480 0.510 6.25 Region IX 0.482 0.502 4.15 Region X 0.511 0.580 13.50 Region XI 0.498 0.567 13.86 Region XII 0.512 0.537 4.88 Caraga 0.502 0.514 2.39 ARMM 0.394 0.383 (2.79)
    43. 43. Environmental and Sustainability Issues <ul><li>Climate Change / Global Warming Impact </li></ul><ul><li>Disaster Preparedness And Risk Management </li></ul>
    44. 44. Environmental Issues Flood Prone Areas in Mindanao
    45. 45. Environmental Issues Tsunami Risk Areas in Mindanao
    46. 46. Environmental Issues Mindanao lies in the Pacific Ring of Fire Mindanao
    47. 47. Environmental Issues Soil Erosion
    48. 48. Continuing Effects of Global Recession <ul><li>Weak global demand </li></ul><ul><li>Slowdown in investments particularly FDIs (foreign direct investments) </li></ul>
    49. 49. Intermittent Peace and Order Problems
    50. 50. Conflict Lines in Mindanao <ul><li>Armed conflict between Moro forces seeking greater autonomy or a separate state and the GOP defending state sovereignty and territorial integrity </li></ul><ul><li>A long-standing communist insurgency (splintered into different factions) which is national in scope </li></ul><ul><li>An assortment of typically localized conflicts caused by elite political and economic rivalries </li></ul><ul><li>Local, often community level conflicts, over access, control and use of land and natural resources </li></ul><ul><li>Conflicts related to criminal activities including drug trafficking, kidnapping for ransom, illegal logging, smuggling and gambling. </li></ul>USAID, 2003; AusAID 2008
    51. 51. Prevalence of armed actors Areas affected by Muslim Separatist Conflict
    52. 52. Power Supply Demand Forecast and Deficit (2010-2012) Source: National Grid Corporation of the Philippines
    53. 53. Power Problem: Immediate measures <ul><li>Facilitate the immediate operation of the Iligan Diesel Power Plant </li></ul><ul><li>Embedded generators to augment supply . </li></ul><ul><li>Modular Generating Sets </li></ul><ul><li>Southern Philippines Power Corp-NPC Additional Contract </li></ul><ul><li>Expeditious upgrading of the generating facilities of NPC/PSALM </li></ul><ul><li>Invoke Section 71 of the EPIRA to address the power supply situation in Mindanao </li></ul>
    54. 54. Power Problem: Medium to Long Term Measures <ul><li>Pursue implementation of additional capacities such as: </li></ul><ul><ul><li>100MW Zamboanga Coal fired Power Plant </li></ul></ul><ul><ul><li>200MW Sarangani Coal Fired Power Plant </li></ul></ul><ul><ul><li>8MW Cabulig Hydro </li></ul></ul><ul><ul><li>7MW Bubunawan Hydro </li></ul></ul><ul><ul><li>68MW Tagoloan Hydro </li></ul></ul><ul><ul><li>50MW expansion of Mt. Apo geothermal </li></ul></ul><ul><ul><li>100MW expansion of STEAG Mindanao Coal fired Power Plant among others. </li></ul></ul><ul><li>Completion of strategic power transmission line projects such as: </li></ul><ul><ul><li>Abaga-Kirahon-Maramag-Bunawan 230 KV Mindanao Backbone Transmission Project (MBTP), </li></ul></ul><ul><ul><li>Sangali-Pitogo 138 KV Line in Zamboanga City </li></ul></ul><ul><ul><li>Gen San-Tacurong 138 KV Line </li></ul></ul><ul><ul><li>Zamboanga City Area 138 KV Line, among others. </li></ul></ul>
    55. 55. <ul><li>Mindanao has gradually transformed into a more integrated and balanced economy </li></ul><ul><li>High incidence of poverty and lingering conflict remain to be Mindanao’s major challenges </li></ul><ul><li>Emerging issues within and outside Mindanao call for a re-thinking of strategies & approaches </li></ul>General Assessment
    56. 56. Mindanao 2020: An Agenda for Peace and Development
    57. 57. What is Mindanao 2020? <ul><li>Sequel to Min 2000 Development Framework Plan </li></ul><ul><li>20 -Year Peace and Development Plan for Mindanao (up to year 2030) </li></ul><ul><li>For completion in July 2010 (to be promulgated by new administration) </li></ul><ul><li>Crafted by Mindanawons </li></ul>
    58. 58. How are we involving Mindanawons? <ul><li>Min2020 </li></ul><ul><ul><li>Quick Survey: about 320 respondents to date </li></ul></ul><ul><ul><li>KII: about 20 now (e.g. Pres. FVR, Nur Misuari) </li></ul></ul><ul><ul><li>FGD: 11 to date incl. RDC ExCom12 & 13, MWG, PCCI, PDAL , IP, and other stakeholders </li></ul></ul><ul><li>Konsult Mindanaw Results </li></ul><ul><ul><li>more than 310 FGDs covering about 5000 people </li></ul></ul><ul><li>Past and forthcoming consultative forums , e.g. Investment Forum; IP Conference; Communicators Summit; Logistics Conference; etc. </li></ul><ul><li>Scenario Building </li></ul><ul><ul><li>November 19, 2009 </li></ul></ul>
    59. 59. <ul><li>Happy and contented people: </li></ul><ul><li>Smile on children’s faces </li></ul><ul><li>Live without fear </li></ul><ul><li>Food on the table at all times </li></ul><ul><li>Roof over one’s head </li></ul><ul><li>Sincere & honest leaders who listen to and serve the people </li></ul><ul><li>Ample opportunities to earn </li></ul><ul><li>No one is looked down upon </li></ul><ul><li>Environment is respected </li></ul><ul><li>Quality education is widely available </li></ul><ul><li>Unity across faiths and cultures </li></ul>Peace & Development Emerging Shared Vision:
    60. 60. Preliminary Agenda for Mindanao <ul><li>Provide a possible guide/basis to Presidentiables and other candidates </li></ul><ul><li>Serve as framework for the formulation of Min2020 </li></ul><ul><li>Develop a tool to widen direct participation of Mindanawons in crafting Min 2020 </li></ul>
    61. 61. Draft Vision Statement In 20 years, Mindanawons of all cultures and socio-economic backgrounds will be enjoying the fruits of peace, progress and prosperity.
    62. 62. <ul><li>Focus on agriculture and services as propellers for economic growth </li></ul><ul><li>Engage in massive SME development </li></ul><ul><li>Deliberately link Mindanao economy under a value-chain approach </li></ul><ul><li>Develop Mindanao as the next Logistics and trade hub of Southeast Asia </li></ul><ul><li>Foster and implement schemes for Payments for Environmental Services </li></ul><ul><li>Reconcile/harmonize laws and regulations (e.g., Mining Law and IPRA) </li></ul>Economy & Environment
    63. 63. Peace & Security <ul><li>Achieve consolidated peace agreement and political settlement with all groups </li></ul><ul><li>Honor the 1996 Final Peace Agreement </li></ul><ul><li>Demobilize and re-integrate all combatants and achieve complete disarmament </li></ul><ul><li>Dismantle infrastructure for illicit trade in weapons and ammunition </li></ul>
    64. 64. Human Development & Social Cohesion <ul><li>Promote people’s participation in pursuing the MDGs </li></ul><ul><li>Rectify discriminatory tendencies in education & popular communication </li></ul><ul><li>Strengthen role of religious leaders and institutions in promoting social cohesion </li></ul><ul><li>Rehabilitate conflict affected areas and address economic and psychological needs of IDPs </li></ul>
    65. 65. Enabling Environment <ul><li>Establish world-class infrastructure system </li></ul><ul><li>Widen LGU and community leeway in utilization of NGA budgets </li></ul><ul><li>Capacitate LGUs, PS & CSOs to mobilize and manage resources </li></ul><ul><li>Strengthen S&T and R&D infrastructure to support Mindanao development planning and decision-making </li></ul><ul><li>Pursue deliberate information, education and communication program </li></ul>
    66. 66. Politics, Governance & Institutions <ul><li>Establish participatory and culture-sensitive governance and political framework that asserts self reliance and self-determination </li></ul><ul><li>Strengthen the electoral system and process </li></ul><ul><li>Fully implement IPRA and strengthen and de-politicize the NCIP </li></ul><ul><li>Strengthen mandate of OPAPP </li></ul>
    67. 67. <ul><li>Facilitate mainstreaming of MILF, MNLF and CPP-NPA as active development partners </li></ul><ul><li>Capacitate and empower LGUs </li></ul><ul><li>Affirm and strengthen community-based planning, program/project identification and implementation </li></ul>Politics, Governance & Institutions
    68. 68. Mindanao Development Authority (MinDA)
    69. 69. RATIONALE <ul><li>Mindanao needs an agency that integrates Mindanao’s agenda and effectively articulates these agenda to national government priorities. </li></ul><ul><li>need for an agency that looks beyond regional concerns and integrates and harmonizes efforts at a Mindanao-wide perspective. </li></ul>
    70. 70. RATIONALE <ul><li>There is a need for an agency that will strengthen the participation of Philippines focus areas (Mindanao and Palawan) in the BIMP-EAGA. </li></ul><ul><li>There should be a lead agency that will provide strategic direction for Mindanao. </li></ul>
    71. 71. SALIENT FEATURES <ul><li>Shall be headed by a Chairman </li></ul><ul><li>to be appointed by the President </li></ul><ul><li>Shall have a cabinet rank </li></ul><ul><li>Shall serve for six (6) years </li></ul><ul><li>Shall act as the Philippine Senior Official for BIMP-EAGA. </li></ul><ul><li>Shall sit as an ex-officio member in the National Economic Development Authority (NEDA) Board and Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Board. </li></ul>
    72. 72. SALIENT FEATURES <ul><li>Functions: </li></ul><ul><ul><li>Formulate an integrated development framework for Mindanao </li></ul></ul><ul><ul><li>Integrate Mindanao-wide peace and development programs and projects </li></ul></ul><ul><ul><li>Provide strategic direction for Mindanao </li></ul></ul><ul><ul><li>Act as the Philippine Coordinating Office for BIMP-EAGA (PCOBE) </li></ul></ul>
    73. 73. SALIENT FEATURES <ul><li>Shall be based in Maramag, Bukidnon – center of Mindanao </li></ul><ul><li>The Chairman shall be assisted by the EXECUTIVE DIRECTOR who shall also act as the Secretary of the Board </li></ul><ul><li>The directions and thrusts of the Authority shall be guided by MinDA Board of Directors and BIMP-EAGA Advisory Board. </li></ul><ul><li>Has an Executive Committee </li></ul>
    74. 74. http://www.medco.gov.ph [email_address]
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