Caraga Today April-June 2015

today caraga

A Publication of the Caraga Regional Development Council

April - June 2015 Vol. XVIII, Issue 2 PAGE 20

2014 Regional Economic Situationer PAGE 30

Q1 2015 Regional Project Monitoring Report

Caraga Regional Development Council to formulate regional research agenda PAGE 4

caraga today Volume XVIII Issue 2 April-June 2015

On this issue PAGE 4 Caraga Regional Development Council to formulate regional research agenda PAGE 5 Caraga Regional Development Council endorses PhP87.39B proposed budgets for fiscal year 2016 PAGE 6 Caraga Regional Development Council holds teambuilding, leadership training PAGE 7 DOST presents the road to Caraga’s development PAGE 8 PhP128M irrigation projects of Jabonga, Agusan del Norte gets Caraga Regional Development Council nod Caraga Regional Development Council endorses procurement of Rapidly Deployable Communications Equipment

FEATURE PAGE 10 On this issue, we feature the State of the Region Address of the Caraga Regional Development Council Chairperson Gov. Sol Matugas

CENTERFOLD The Race to Universal Coverage

HIGHLIGHTS PAGE 17 High Impact 5 PAGE 20 2014 Caraga Regional Economic Situationer PAGE 30 1st Quarter 2015 Regional Project Monitoring Report

PAGE 9 What is the Philippine Rural Development Program PAGE 36 DOST 12 invites public to its Halal Laboratory

PAGE 32 How the local government units are rated: The 2015 Cities and Municipalities Competitiveness Index PAGE 34 What has been done: The ASEAN Economic Community Integration

Published quarterly by the Caraga Regional Development Council with editorial office at the National Economic and Development Authority-Caraga, Nimfa Tiu Building I, JP Rosales Avenue, Butuan City.

For questions, comments, and suggestions email us at neda13caraga@yahoo.com or call (085) 341-4195.

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Editor’s Note Jazmin D. Berido

On this issue, we highlight the accomplishments of the Caraga Region in 2014 in the State of the Region Address delivered by the Chairperson of the Caraga Regional Development Council (RDC) Gov. Sol Matugas.

We report the projects endorsed by the Caraga RDC during the first quarter of 2015 as well as the proposed budgets for fiscal year 2016 of regional line agencies and state universities and colleges.

This year, the Caraga RDC will embark on an important endeavor and that is formulating the Caraga Regional Research Agenda.

For the attainment of the Millennium Development Goals, we feature the

Universal Health Care High Impact Five Strategy of the DOH which consists of the following: (1) Maternal care; (2) Infant care; (3) Under five vaccines and integrated management of childhood illnesses; (4) Diagnosis, treatment, and peer counseling for HIV-AIDS; and (5) Profiling, mapping and matching of recipients.

Further, at the centerfold is the achievement of the National Health Insurance Program in the region for the past twenty years.

This year is important for all cities and municipalities since they will be evaluated for the 2015 Cities and Municipalities Competitive Index. We feature here the

various indicators for rating our local government units primarily to encourage them to participate and provide guidance in gathering such data.

Relatedly, we feature the achievement of the ASEAN Economic Community for advocacy and continually provide inspiration to stakeholders in embracing this direction.

As a regular input, we feature the 2014 Caraga Regional Economic Situationer to provide overview of the region‟s economy to all stakeholders.

Finally, we feature the projects monitored in the region for the first quarter of 2015.

Editorial Board Editor-in-Chief Jazmin D. Berido Writers Sherwin E. Verdun Michelle P. Dela Calzada Mirasol P. Montenegro Shiela M. Bermoy Ann B. Jaquilmac Paris Raymond S. Gaballo Ian G. Miculob Design Editor Sherwin E. Verdun Advisers RD Mylah Faye Aurora B. Cariño ARD Roy B. Kantuna

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caraga today

The research process

Caraga Regional Development Council to formulate regional research agenda

by Sherwin E. Verdun, NEDA-Caraga

The Caraga Regional Development Council (RDC) will endeavor to formulate a unified regional research agenda to guide development efforts of the region.

The Caraga RDC recognizes the crucial role that research plays in the improvement of plan formulation, investment programming, budgeting, and monitoring and evaluation in the region and in attaining the goal of the region of becoming the FAME (fishery, agro-forestry, mineral, ecotourism) Center of the country. Further, the Caraga RDC recognizes the challenges that will result from ASEAN integration that may require research for informed decisionmaking.

The goal is to generate knowledge support needed to attain Caraga Region‟s goal of becoming the FAME Center of the Philippines.

The objectives of the endeavor are: provide a framework for developing research agenda; identify knowledge gaps; The strength of the research agenda is determine specific attributed to the academe’s optimism; research topics; identify the local government units’ creativity, the research consortia’s determination, research institutions, collaborators, and and the regional line agencies’ vigor.

funding institutions.

The research agenda will be organized as a framework of two broad streams as follows: FAME research agenda (broad research topics in fishery, agro-forestry, mineral, eco-tourism); and support research agenda (broad research topics that covers the macro-economy, good governance, human development, and peace and order).

To prepare the unified regional research agenda, all regional line agencies (including attached agencies and government owned and controlled corporations), academe (government and private higher education institutions), local government units (provincial and city), and research consortia in the region will formulate their research agenda. NEDA-Caraga, as Secretariat, will then integrate all research agenda into a publication available for consumption of all stakeholders.

The research agenda will cover broad scale research activities in the following areas:  Assessment of problems  Assessment of causes  Evaluation of solutions (programs)  Program or project review  Policy Review The research problems that will be identified must correspond to the goals of the RDP; can be addressed through government intervention; should be suitable for empirical analysis; and analysis should lead to potential policy initiatives.

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Caraga Regional Development Council endorses PhP87.39B proposed budgets for fiscal year 2016

by Sherwin E. Verdun, NEDA-Caraga

The Caraga Regional Development Council (RDC) endorsed PhP87.39 billion proposed budgets for fiscal year 2016, Thursday, March 26, 2015 during its 82nd Full Council Meeting at LJ Mega Convention Hall, Butuan City.

The said budget represents the 2016 proposed budgets of regional line agencies and state colleges and universities of the region.

The endorsement came after a rigorous process of consultations with different stakeholders including civil society organizations.

About 58.8% of the total endorsed budget came from the Infrastructure Sector amounting to PhP51.40 billion, of which PhP47.14 billion is proposed by the

Department of Public Works and Highways (DPWH).

The Social Sector has a proposed budget of PhP29.36 billion with the Department of Education (DepEd) posting the highest proposed budget of PhP19.43 billion.

Meanwhile, the Economic Sector has a proposed budget of PhP5.04 billion; while the Development Administration Sector has a budget of PhP1.59 billion.

Besides deliberations in the four sectoral committees, the Caraga RDC has conducted a Budget Forum and a Budget Consultation with Civil Society Organizations (CSOs) and the Private Sector on March 3 and 6, 2015, respectively.

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Caraga Regional Development Council holds teambuilding, leadership training

by Ann B. Jaquilmac, NEDA-Caraga

The Caraga Regional Development Council (RDC) in coordination with the Province of Surigao Del Norte conducted a teambuilding cum leadership training last April 6-7, 2015 at Parklane Hotel, Cebu City.

Caraga RDC Chairperson Gov. Sol Matugas led the activity along with the 22 members of the RDC. Also present were the department heads of Surigao Del Norte and the RDC Secretariat.

The activity was aimed at further strengthening the leadership capacities of the Caraga RDC members as well as fostering camaraderie between and among the members. Further, it also served as an avenue to learn from the good practices of other local government units particularly, Cebu City.

“The activity provides an opportunity to enjoy the success journey towards unlimited possibilities of unlocking new ideas that would lead to knowledge breakthroughs and insights related to the

burning issues of today that are seriously affecting our day to day lives,” said Governor Matugas during her inspirational message. She also shared John Maxwell‟s principles for personal growth encouraging the members to reflect on these to become better key players in the region.

Mr. Mennen Aracid, a managing consultant of the Center for Leadership and Change, Inc. was the resource person. He shared insights on leadership styles, sensory preferences, handling perceptions and mindsets, values and personality theories through lectures and workshops.

Mayor Michael Rama and Vice Mayor Edgardo Labella graciously hosted a dinner for the members of the Caraga RDC. As coordinated by the office of Mayor Rama, the members visited areas in Cebu City where good practices on governance, industry and tourism development are showcased.

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DOST presents the road to Caraga’s development

by Shiela M. Bermoy , NEDA-Caraga

Science Nation: Agham na Ramdam.

The theme is coined by the Department of Science and Technology (DOST) to highlight the advancement of science and technology as one of the important catalysts of inclusive growth and development for the entire country.

DOST together with the Caraga Regional Development Council spearheaded the Science and Technology Forum in Butuan City on May 27, 2015. The forum was attended by RDC members, the academe, regional agencies, and private sector of Caraga.

“This is the first Science and Technology Forum in this region,” declared RDC Chairperson and Surigao del Norte Gov. Sol Matugas. Thus, Caraga Region is grateful for the visit of DOST Sec. Mario Montejo.

Montejo delivered his keynote address emphasizing how science and technology could help alleviate poverty. “It is the buildup of our know-how and developing our capabilities to come up with innovative solution that directly address the concerns and problems of the community…There are many presentations in this forum and all of them will showcase how science and technology can contribute to inclusive growth,” he said.

Several DOST key projects and programs were highlighted to promote knowledge and awareness to the public about their critical role in Caraga‟s pursuit of inclusive and sustainable development. Dr. Andrei Coronel of Ateneo de Manila University showed the usefulness of the eHealth TABLET (Technology-Assisted Boards for LGU Efficiency and Transparency) for Informed Decision-making of local government units (LGU) or eHATID for LGU, a tablet-based electronic medical record system. Aside from managing medical records, the eHATID serves as decision-making tool for local government units by allowing them to access summarized medical data and identify their community‟s medical situations.

Dr. Rowena Varela of Caraga State

University presented the Responsible Mining Program in Mindanao, a research and development initiative aimed at assessing the mining industry and providing policy options to ensure responsible mining. CSU Project Leaders Engr. Meriam Santillan and Engr.

Michelle Japitana presented Phil-LiDAR Project- Flood Modelling and Resource Mapping.

Caraga State University is one of the few SUCs across the country that implements Light Detection and Ranging (LiDAR) Programs, which means another technological edge for Caraga.

Further, the region‟s science and technology sector is made more innovative as DOST launches the Eastern Mindanao Industry, Energy, and Emerging Technologies Research Alliance for Development (EMIEERALD). EMIEERALD is a partnership among regional line agencies, academe, and private institutions in the region which aims to provide solutions to issues and development challenges through research and development activities relating to industry, energy, and emerging technologies.

The event further strengthened partnerships and commitment among stakeholders, specifically the Caraga Food Safety Team Members during Commitment Signing and the Governors and Mayors during MOA Signing for the installation of Early Warning Devices.

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PhP128M irrigation projects of Jabonga, Agusan del Norte gets Caraga Regional Development Council nod

by Sherwin E. Verdun, NEDA-Caraga

Two irrigation projects amounting to PhP128 million in Jabonga, Agusan del Norte were endorsed by the Caraga Regional Development Council (RDC) through RDC Resolution No. 11, series of 2015 last March 26, 2015.

The Puyo Small River Irrigation Project will irrigate 380 hectares costing PhP120 million while the Cuyago Small River Irrigation Project will irrigate 30 hectares and costs PhP8 million.

These irrigation projects are expected to stimulate the agriculture sector of Agusan del Norte by expanding the existing irrigated area for agricultural production.

The projects are consistent with the goals and objectives of the Caraga Regional Development Plan 2013-2016 to improve rice productivity and ensure food security in the region.

The Provincial Development Council of Agusan del Norte through Resolution No. 1, series of 2015 endorsed the abovementioned projects to the Caraga RDCInfrastructure Development Committee (IDC). Likewise, the Caraga RDC-IDC endorsed the projects to the Caraga RDC through Caraga RDC-IDC Resolution No. 7, series of 2015 during its first quarter meeting on March 19, 2015.

Caraga Regional Development Council endorses procurement of Rapidly Deployable Communications Equipment

by Sherwin E. Verdun, NEDA-Caraga

In recent years, Caraga experienced several disasters that resulted in deaths and destruction of properties.

The timely sharing of information has been identified to minimize or lessen the adverse impact of calamities. However, the immediate reestablishment of a fast and reliable communications network during disasters is a challenge.

The National Telecommunications Commission-Caraga has identified the establishment of a Rapidly Deployable Communications Equipment as crucial in providing vital information to decisionmakers, emergency service responders and other stakeholders especially in the aftermath of disasters.

On March 26, 2015, the Caraga

Regional Development Council endorsed the procurement of Rapidly Deployable Communications Equipment through Resolution No. 12, series 2015.

The Rapidly Deployable Communications Equipment includes various radio communications equipment and accessories amounting to PhP2 million.

The project aims to provide an immediate, 24/7 reliable, stand-alone, allweather communications network that will link ground zero to the rest of the world; and to assist various emergency responders during emergencies.

A project monitoring team will be created to ensure the successful project implementation.

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What is the Philippine Rural Development Program

by Sherwin E. Verdun, NEDA-Caraga

The Philippine Rural Development Program (PRDP) is a six-year program (2013-2018) designed to establish the government platform for a modern, climate -smart, and market-oriented agri-fishery sector. It focuses on expanding market access and improving competitiveness while introducing reforms in the internal operations of the Department of Agriculture.

The program contributes to inclusive growth by unleashing the economic potential of rural producers by investing in targeted, climate resilient agri-fishery infrastructure and by upgrading value to agri-based enterprises identified in groundvalidated Provincial Commodity Investment Plans linked to national commodity road maps.

The program‟s development objectives include the following: 1. at least 5% increase in annual real household incomes of farmer beneficiaries; 2. 7% increase in value of annual marketed output; and 3. 20% increase in number of farmers and fishers with improved access to DA services.

Moreover, the PRDP is designed to complement the programs of other national agencies, notably: 1. DAR – by seeking the participation of agrarian reform communities in identified priority commodity value chains and by ensuring complementation in the bridge program using the DA‟s geotagging tool that maps various rural infrastructure facilities; 2. DPWH – by tapping its technical assistance and by complementing its national road network; 3. DSWD – by providing agri-fishery enterprise opportunities for farm

families and landless rural poor graduating from the conditional cash transfer program; and 4. DTI – by tying up with its OTOP (one town, one product) program in the localities and by accessing its enterprise training packages and value chain studies.

The program has the following components: 1. Investments in Agriculture and Fisheries Modernization Program Planning at the Local and National Levels; 2. Intensified Building up of Infrastructure and Logistics for Development (I-BUILD); 3. Investments in Rural Enterprises and Agriculture and Fisheries Productivity (I-REAP), and 4. Implementation Support to PRDP (ISUPPORT).

PRDP has a total cost of PhP 27.5 billion, of which 92% is designed to deliver goods and services directly to the people through I-BUILD and I-REAP. It is funded by the World Bank (75%), National Government (13%), local government units (11%) and a grant from Global Environment Facility (1%).

PRDP employs geo-tagging and geomapping to enhance transparency and supervision of development projects. The said tools are used for strategic planning for agricultural development intervention, informing project implementation, effectively communicating gaps and overlaps and engaging beneficiaries for citizen‟s feedback.

Likewise, it employs vulnerability and suitability analysis in ranking of municipalities for PRDP prioritization while mapping and spatial analysis is used to inform and target PRDP project allocations and funds.

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Twenty years ago, Republic Act 7901 created the Caraga Region. Since then, various developments have taken place that changed the region’s social, economic, and even political landscapes. Today, as we celebrate its 20 years of founding, we ask ourselves what have we attained and what have we become as a region that deserves celebration? As your RDC Chairperson, it is my privilege and duty to apprise you on the region’s performance in the past year.

State of the Region Address

by Gov. Sol Matugas, Caraga Regional Development Council Chairperson

Macroeconomy The region exhibited strong economic performance for the last four years because of our unwavering commitment and concerted efforts. Caraga‟s Gross Regional Domestic Product (GRDP) continues to be one of the top five fastest growing economies in the country for four successive years.

In 2013, Caraga‟s economy amounted to PhP83.55 billion posting a growth of 7.8% – the 4th fastest growing region for the said year. It is higher than the country‟s GDP growth of only 7.2%. In 2012, the region grew by 10.7%, which was the second highest among all regions for that particular year. For two consecutive years, the region‟s growth performance was higher than the neighboring regions of Regions X and XI. The Service sector constituted the biggest share in the region‟s economy at 44.8% in 2013. It was followed by the Industry sector, which accounted for 34.4%, while Agriculture, Hunting, Fishery, and Forestry (AHHF) contributed 20.8%.

Trade, Industry and Services The Service sector contributed most to the region‟s economic growth in 2013 with 3.3 percentage points, while the Industry sector chipped in 2.9 percentage points. Industry decelerated from 18.2% in 2012 to 8.5% in 2013. Mining and Quarrying, the largest contributor of the region‟s economy, slowed down from 20.5% in 2012 to 8.8% in 2013 due to the decrease in the value of metallic mineral products caused by a decline in the world market prices.

Mineral exports were valued at PhP29.84 billion in 2013, which represents a 9.98% decline from 2012 figure. The Mines and Geosciences Bureau (MGB) XIII recorded 618 shipments reflecting a 1.64% growth from 2012 shipment.

Mining and quarrying generated PhP596.88 million in excise tax and PhP1.2 billion in royalties. Both excise tax and royalty tax decreased by 10% and 11%, respectively compared to the previous year‟s figures because of the decline of the gross value of metals exported.

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One notable accomplishment in the mining sector is the start of the full production of mixed sulfides of the Taganito High Pressure Acid Leaching (THPAL) Nickel Corporation Mineral Processing Plant (MPP) in Claver, Surigao del Norte in October 2013. The plant produced 8,000 MT of mixed sulfides, with a total gross value of US$48,025,628.28 equivalent to PhP 2,092,324,065.04.

In 2013, the Department of Trade and Industry (DTI) XIII recorded total domestic sales of PhP 458.86 million, which is 8.25% or PhP41.26 million lower than the 2012 sales of PhP500.12 million.

DTI also recorded 6,095 new business names registered in 2013. This represents an increase of 5.67% or 327 new business registrations from 2012. Agusan del Norte contributed the biggest share of 40.25%, followed by Surigao del Norte with 26.33%.

Based on the 2014 Cities and Municipalities Competitiveness Index, among the 136 cities and 399 municipalities, 2 cities and 3 municipalities in Caraga figured in the top 50. Butuan City ranks 16th overall while seven Caraga municipalities are among the top 25% of the 399 municipalities covered in the index and 15 municipalities are in the top 50%.

Tourism has sustained its growth with 861,767 tourist arrivals in 2013 or an increase of 15.73% compared to the 2012 tourist arrivals. Among the provinces, Surigao del Norte recorded the most number of tourists.

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Agriculture, Fishery and Forestry The overall performance of our agriculture sector showed a slight drop in its output because of the decrease in the production of the livestock and fishery sub-sectors. On the other hand, forestry sub-sector performed better in 2013 by the increase in private land‟s timber production.

From a 4.13% growth in 2012, the growth was slower the following year, registering only a meager 3.48% increase.

The crops subsector, which contributed the bulk of the region‟s agriculture production, grew only by 3.99%. The growth figure was lower than the 4.82% registered in 2012. On the other hand, livestock, which already had a dismal performance in the previous year, continued to contract by 1.38%. Among the subsectors, fisheries had the biggest drop at 6.11% although it only had about 1% share to the production for the year. The poultry subsector had an impressive performance. It offset its negative growth of 7% in 2012 with a 20.85% expansion the following year.

Total agricultural production was estimated at about 1.976 million metric tons, which is higher by 3.48% from the previous year‟s production. In terms of value, the production was pegged at about PhP31.461 billion pesos at current price. This is 5.21% higher than the 2012 gross value of PhP29.903 billion.

The Department of Agriculture reported that Caraga Region is already self-sufficient for rice. It is attributed to the production of

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Agusan del Sur with 305,171 metric tons which is equivalent to 52.7% of the total palay production of Caraga.

Overall, crops posted an increase of 7.87% in terms of production value. In 2013, the gross value was about PhP18.211 billion, which is way better than the gross value of PhP16.882 billion in 2012. Cereals‟ gross value posted an increase of 27.71% because of the combined strong growth of palay and corn at 28.65% and 21.40%, respectively.

The performance of the fisheries subsector continue to decline in 2013.

Volume of production contracted by 6.11%, which is equivalent to a drop of 5,725.81 metric tons. Municipal fisheries posted the highest decrease of 7.21% followed by aquaculture. Commercial fisheries had a slight drop of 0.65%. One of the factors affecting fishery productivity was the occurrence of typhoons/tropical cyclones in 2013 that reduced the number of fishing days in the region‟s fishing grounds. The decline in the seaweeds production was affected by the „ice-ice‟ disease notably in Surigao del Sur, which is the biggest aquaculture contributor.

In terms of value, fisheries subsector showed an increase of 2.26% based on the data of the Philippine Statistical Authority. In 2012, gross value of fisheries production was at PhP5.393 billion and grew to PhP5.515 billion in 2013. Aquaculture proved to be the driver of growth for this sector with its 11.78% climb in 2013, the highest among the three subsectors. In 2013, several Bottom-Up

Budgeting Projects in fisheries amounting to PhP39.467 million were implemented.

Log production‟s growth rebounded in 2013. From its 37.19% drop in 2012, it recorded an increase of 112.81%. On a threeyear period, the region produced an average of 431.704 million metric tons of logs. The growth in 2013 was due to the Private Tree Plantation Ownership Certificates (PTPOC) production, which increased by 115.04% or 306,306.34 m3. The PTPOC accounted for 98.06% of the 2013 total log production.

Access, Logistic and Other Infrastructure Services Through the years, we have continuously improved our road networks. The region‟s national road network is 80% concrete in surfacing or 1,183.55 km out of the total length of 1,477.925. Among all provinces in the region, the Province of Dinagat Islands has only 26% of paved national road and will require a total investment of PhP991 million to be implemented until 2016 on road concreting and construction of 17 bridges.

Meanwhile, the proportion of paved roads in the Province of Agusan del Sur stands only at 69%, which is the lowest in mainland Caraga. DPWH commits that a total of PhP 6.89 Billion will be invested in Agusan del Sur until 2016 for road preventive maintenance, concreting of eastwest lateral roads, circumferential road, and roads leading to major tourist destinations.

Of the 790.56 kilometers national arterial roads, only 26.29 km. remains unpaved.

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DPWH implemented a number of multimillion national arterial road projects improving the percentage of paved arterial road from 93.71% in 2012 to 97% in 2013.

The national secondary road development stands at 61% – an impressive accomplishment when compared to the 51.70% secondary road development in 2012.

With regards to improving our connectivity and accessibility through air, our three operating airports, had a total number of 6,484 flights in 2013. Total incoming passengers reached 322,371, signifying an increase of 1.93%. Total outgoing passengers reached 333,781 indicating an increase of 4.49% from last year‟s 319,441 passengers. Butuan airport became the preferred airport of passengers from some areas of Misamis Oriental due to the relocation of the Cagayan airport to Laguindingan, Misamis Oriental.

Good Governance How did we fare when it comes to regional development finance?

The Region targeted a 10% annual increase in the collection of different types of taxes for 2013 until 2016. Data from the Bureau of Internal Revenue (BIR) XIII for the period 2012-2013 shows that among the types of taxes, only value-added tax and other taxes achieved the Region‟s target of 10% annual increase. The percentage tax also performed above the target but only by 2.43%. While the aggregate collection for the Region in 2013 surpassed the collection in 2012, the

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increase did not reach the Region‟s target with an increase of only 5.35%. There is also a large decline in the collection of excise tax at (83.33%). This is because many of the big taxpayers within the region‟s coverage were transferred to the jurisdiction of the Large Taxpayer Service hence their tax payments were credited to the said service.

Our local government units remained to be dependent on the Internal Revenue Allotment (IRA). Among the provinces and cities in the Region, Butuan City has the lowest IRA dependency with 67% followed

by Surigao City with 74%. The most IRA dependent among the provinces are Surigao del Sur and Dinagat Islands, while among the cities, it is Bayugan City with 93%.

The Region‟s annual growth target for Real Property Tax (RPT) is 10% for the next three years. Among the cities, Bislig City and Cabadbaran City surpassed the target with 66.67% and 13.04% increases in collection, respectively. It should be noted that all the cities posted increases in their RPT collection from 2012-2013. Among the Provinces, Agusan del Norte and Agusan del Sur had the biggest increases in RPT collection with 46.15% and 47.38%, respectively.

Moreover, the LGUs have been effective in collecting business tax as the region significantly surpassed the annual increase of 10% in 2013.

It also noteworthy that the provinces and cities spending on health, nutrition and population management is above the regional target of 5% – 15% except for Tandag City and Province of Dinagat Islands.

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Peace and Order Caraga‟s peace and order situation remains relatively stable, contributing to the achievement of high economic growth in the region for the past years.

From 2012 to 2013, while the crime volume surged at a rate of 103.74% it is only due to better recording of the PNP, with the inclusion of women and children protection cases, traffic accidents and barangay cases which were previously not included in the crime volume count.

As a banner program to strengthen peace building and development in conflictaffected areas, the Payapa at Masaganang Pamayanan (PAMANA) was implemented.

In 2013, PhP223.30 million worth of PAMANA projects were implemented. This is 41.33% more than the previous year‟s. Of the PAMANA projects implemented in 2013, 99.87% or PhP223 million were allocated for the construction and rehabilitation of farm-to -market roads.

The entry of the German International Cooperation (GIZ) in the region with the implementation of the Conflict Sensitive Resource and Asset Management (COSERAM) is a significant development.

COSERAM aims at reducing the number of violent conflicts over land/land use. The program is indeed successful, as resourcebased violent conflicts in Butuan City and Agusan Del Norte were reduced by 41%.

Further, there was also a 60% reduction of violent conflicts involving Ancestral Domain

Titling in Agusan del Sur and Surigao del Sur. Millennium Development Goals The attainment of the Millennium Development Goals (MDGs) is a priority of the region. We have made progress in our commitment to eradicate extreme poverty as the region‟s economic growth rate was accompanied by a massive reduction of poverty incidence in the region. Based on the latest poverty statistics as of year 2012, Caraga is no longer the poorest region in the country. It has improved by six notches and now ranks 11th out of 17 regions in terms of poverty incidence. It is among the least poor regions in Mindanao, along with Region XI. Caraga Region dramatically reduced its poverty incidence among families from 46.0% in 2009 to 31.9% in 2012. Likewise, its poverty incidence among population reduced from 54.4% in 2009 to 40.3% in 2012.

However, despite this remarkable progress, the probability of achieving our target of halving extreme poverty is very low. Nevertheless, we can applaud ourselves as we have exceeded our target of reducing malnutrition among 0-5 years old children.

In terms of achieving universal primary education, we have high probability of attaining a 100% elementary participation rate. However, the challenge is how to keep children in school. As our elementary cohort survival rate stood at 71.99% in 2013, there is a medium probability of attaining our

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target.

Our performance in terms of reducing child mortality is commendable. We are positive that we will attain our under-five mortality rate and infant mortality rate targets as 2013 figures stood at 7 and 4.76 per 1,000 livebirths, respectively. On the other hand, we need to double or even triple our efforts in curbing maternal deaths, as maternal mortality ratio in the region remains high at 1.35 per 1,000 livebirths. Making contraceptives more accessible and acceptable is also a challenge, as our contraceptive prevalence rate only stood at 56.14%.

In terms of halting the incidence of malaria and other diseases, our malaria and TB morbidity rates have been dramatically reduced, thus attaining our targets would be easy. However, the rising incidence of HIV/ AIDs is a cause for alarm. As of 2013, DOH has reported that there are 31 HIV cases in the region with Butuan City registering the most number of cases.

In terms of providing basic amenities, we have already attained our target relative to making safe drinking water accessible.

Environment and Sustainable Development Our efforts to ensure sustainable development continues. Parallel to the issuance of EO 23 series of 2010, declaring a moratorium in the harvesting of natural grown forest, the President issued EO No. 26 institutionalizing the National Greening

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Program (NGP). From 2012 to 2013, a total of 28,091 hectares were planted through NGP. The region performed well in the implementation of the said program in 2013 by exceeding its target by 43.87%.

Exemplary performances were noted in Agusan del Sur, Agusan del Norte and Surigao del Norte.

The declaration of Taguibo River as Water Quality Management Area is a milestone in our watershed management efforts. We have established a critical habitat for the conservation of the Philippine Eagle in Surigao Del Sur. We also invested on strengthening local capacities and promoting sustainable management of natural resources through:  Updating of CLUPs by mainstreaming biodiversity concerns through the Biodiversity Partnership Project (BPP);  Piloting of Caimpugan Peat in San Francisco, Agusan del Sur under the ASEAN Peatland Forest Project; and  Institutionalization of conflict transformation through the Conflict Sensitive Resource and Asset Management (COSERAM) Program funded by GIZ. To comply with Republic Act No. 9003 or the “Ecological Solid Waste Management (ESWM) Act of 2000,” waste segregation has already started in the region with a waste diversion rate of 35% in 2013. While this is low considering that the ESWM Act was enacted 13 years ago, it increased significantly by 10 percentage points from

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the 2012 figure of 25%. A number of LGUs have been recognized for their ESWM best practices including the municipalities of Esperaza, Veruela and Trento in Agusan del Sur; Hinatuan and Carrascal in Surigao del Sur; Las Nieves in Agusan del Norte; and Socorro in Surigao del Norte.

Given the region‟s exposure to different types of hazards, we have implemented initiatives to ensure the resiliency and adaptability of the region‟s population against disasters. The Regional Disaster Risk Reduction and Management Council (DRRM) launched on February 28, 2013 the Caraga Regional Disaster Risk Reduction and Management (DRRM) Plan 2013-2017.

In partnership with different stakeholders, the RDRRMC approved the Regional Alert Level System; facilitated the updating of the Regional Contingency/Cluster Plan; conducted drills and simulation exercise at the local level; and facilitated the formulation/updating of local DRRM plans of some municipalities in Agusan del Norte, Agusan del Sur and Province of Dinagat Islands.

Our Path Forward We achieved these milestones because we toiled hard, we worked together, and we were one. We conquered because we are committed to our vision of One Caraga: One Vision, One Mission. And I thank all of you, public servants and servant leaders of Caraga, for your hard work, passion and dedication to bring Caraga to greater heights.

While the region has performed well, we should not be contented. There is still much to do for us to attain our goal of making the region the Fishery Agri-forestry, Mineral and Ecotourism (FAME) Center of the country and in making development inclusive.

Thus, the Caraga RDC affirms its commitment to bring a rapid and sustained growth that benefits everyone. We stand by our commitment to bring forth inclusive growth. We shall continue to create productive employment, increase our human capital, curb poverty and ensure sustainable development.

Our priorities and strategies to attain these commitments have been laid out in the Revised Caraga Regional Development Plan 2013-2016. As your RDC Chairperson, I assure you of my unfaltering commitment to implement the RDP, our roadmap for development. We will implement the programs and projects laid out in the RDIP and deliver results.

Let us bear in mind that we are entrusted with the mandate and responsibility of bringing into fruition a development that is high and sustainable, generates mass employment that draws the majority of our people into the economic and social mainstream and facilitates the reduction of poverty. To us servant leaders of this region, let us make Caraga‟s development agenda our personal mission and commitment.

Together let us rise up to the challenge of surpassing our current gains and paving the way for a greater Caraga Region.

Vol. XVIII

Issue 2

17

The Race to Universal Coverage The National Health Insurance Program was created and the Philippine Health Insurance Corporation was established through RA 7875 on February 14, 1995 and amended by RA 9241 on February 10, 2004 and RA 10606 on October 6, 2014 to provide health insurance coverage and ensure affordable, acceptable, available, and accessible health care services for all Filipinos.

RA 7875

RA 9241

RA 10606

February 14, 1995

February 10, 2004

October 6, 2014

PhilHealth-Caraga has achieved the following in 2014:

946,358

1,616,511

2,644,590

96%

members

dependents

beneficiaries

coverage

Visi Bawat Pilipin Bawat Miyemb Kalusugan Na

1999 Established the unified benefits for all on December 1

1997 1995 Pres. Fidel V. Ramos signed RA 7875 on February 14

Implemented the Indigent Program on October 1 Turned-over the Medicare Programs to PhilHealth from GSIS on October 1

1998

Established the first Regional Health Insurance Office in Iloilo City signaling the start of decentralization of 2001 frontline services to the Opened the PhilHealth locals on March 8 Memberâ€&#x;s Assistance Center (PMAC) on July 2 Implemented the Individually Paying Program on October 1

2002

2004

Turned-over the Medicare Introduced the Out-Patient Institutionalized the NonPrograms to PhilHealth Benefit Package (OPB) for Paying Program (NPM) on from SSS on April 16 indigent families enrolled February 14 under the regular sponsored program and the first outpatient diagnostic package in Laguna and Provider Capitation Scheme on July 19

2000

Pres. Gloria MacapagalArroyo signed RA 9241 (amending RA 7875) on February 10

2013 Launch the first Nationwide Simultaneous Run on February 17

ion no, Miyembro bro, Protektado atin, Segurado

Pres. Benigno S. Aquino III signed RA 10606 (further amending RA 7875) on June 19 Launched the all case rates and Z morph on October 31

2005

2011

Turned-over the Medicare Programs to PhilHealth from OWWA on March 1

Implemented the 23 case rates and the No Balance Billing (NBB) on September 1

2008

2010

Expansion of Maternity Introduction of the Malaria Care Package for 3rd NSD Package on December 1 on October 1

2006

Introduction of the HIV Package October 1

Newborn Care Package on December 1

2012

Introduced the Point of Care Enrollment Program (POC) on November 29 Enrolled 14.7 million indigent families

2014

Launched the race to Launched the Alaga Ka on Universal Health Care on March 25 February 15 Covered DSWDâ€&#x;s 4Ps beneficiaries on November 6 PhilHealth introduced MOVES, CARES, SHINES, Expo Express on August 28

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20

2014 Caraga Regional Economic Situationer Overview of the Economy Key Labor Statistics, Caraga, 2013-2014 Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Rate Source: PSA-NSO

2013 66.50 93.93 6.08 27.13

The Bangko Sentral ng Pilipinas (BSP) noted the continuing growth of Butuan City. BSP recognizes the growing business establishments, new malls, real-estate companies and the construction of many subdivisions all over the city and other parts of the region.

Inflation rate is at 5.31%. Food and nonalcoholic beverages exhibited the biggest price increases followed by housing, water, electricity, gas and other fuels.

Labor force increased by 1.47% while labor force participation contracted by 1.02% in 2014.

Employment rate grew by 0.27%. Subsequently unemployment decreased by 4.12%. Underemployment rate declined by 6.82%.

In terms of outputs, agriculture, forestry and fishery productions presented varied trends.

Corn, fruit and vegetable productions increased by 16.68%, 14.77%and 3.34% respectively; while palay

2014 65.83 94.18 5.83 25.28

production declined by 1.60% due to insufficient rain water and lesser area planted. Increased timber production by private plantation contributed significantly to the 17.99% growth of log production.

On the other hand, livestock declined by 1.86%; while poultry and poultry products increased by 14.05%and 72.25% respectively. Fish sub-sector posed a 33% decrease.

On trade, regional domestic sales improved by 33.35% in 2014 with a value of PhP611.86 million. New business also increased by 6.19%.

Mining and quarrying continue to be the main source of export posting an increase of 166.20% or PhP79.44 billion. Gold bullion reached a total volume of 87,920.97 oz. representing a 30.64% increase from 2013â€&#x;s figure.

On the other hand, silver production contracted by 58.10%. MGB noted a 22.82% increase in shipment. Mining activities remitted PhP1.59 billion

excise tax and PhP 2.70 billion royalties. Foreign export throughput grew by 9.29%for a total of 36,575,040.92 MT. Moreover, manufactured forest products dropped by 36.28%.

On services, both total assets and total operating income of the region declined by 6.58% and 54.93%, respectively.

Nevertheless, tourist arrivals increased by 41.66% for a total of 2,440,635. Total flights also posed an upturn of 7.68% for a total of 6,982.

The considerable increase in crimes committed in Butuan City and Agusan del Sur contributed to the increased crime incidence in the region by 24.50%. Both index and non-index crimes were recorded highest in Butuan City and observed to be most rampant during the 1st quarter of 2014. Crime clearance and crime solution presented lower efficiencies as well.

Vol. XVIII

Issue 2

21

caraga today

22 Inflation Rate, 2013-2014 (%)

Macroeconomic Performance Labor and Employment The region‟s labor force increased by 1.47% from 1,733,000 in 2013 to 1,759,000 in 2014. However, the labor force participation rate slightly shrunk by 1.02 % from 66.50% in 2013 to 65.83% in 2014.

Employment rate increased by 0.27 percentage point from 93.93% in 2013 to 94.18% in 2014. DOLE said that this growth was attributed to new mall openings. Consequently, unemployment rate decreased by 4.12% from 6.048% in 2013 to 5.86% in 2014.

Underemployment rate decreased in 2014 by 6.82% from 27.13% in 2013 to 25.28% in 2014.

Inflation and Consumer Price Indices Inflation rate inched up by 39.08% from 3.82% in 2013 to 5.31% in 2014.

Prices of basic commodities and services generally increased in 2014.

The average Consumer Price Index (CPI) grew by 5.30% from an average of 147.86 in 2013 it increased to an average of 155.69 in 2014.

Surigao del Sur has the highest CPI level among the

Consumer Price Index, 2013-2014 (PhP)

provinces in 2014.

With the constant spike in the prices of basic commodities and services in 2014, the purchasing power of peso (PPP) in all provinces of Caraga consequently declined, reducing money value by 4.93%, which indicates that goods and services have become more expensive.

Agriculture, Forestry, and Fishery Palay Palay production decreased in 2014 by 1.60% from 583,838 MT in 2013 to 574,499 metric tons (MT) in 2014.

This is attributed to lesser harvest area which contracted by 1.35% (2,389 ha) from 176,559 ha in 2013 to 174,170 ha in 2014. More areas were not harvested in the third to fourth quarters due to insufficient rainwater.

Lesser rains during vegetative to reproductive stages, Malayan Black Bug, Stemborer and rats also contributed to the overall decline in productivity of palay particularly in the second semester of 2014.

Agusan del Sur remained as the top producer of palay contributing 50.83% of the overall output in 2014 or a total of 292,019 metric tons

followed by Surigao del Sur with 19.58% contribution or 112,493 metric tons. Agusan del Norte, on the other hand, has produced a total of 99,786 metric tons while Surigao del Norte and Dinagat Islands produced 63,694 metric tons and 6,507 metric tons, respectively.

Despite the damages on crops and other agricultural products brought about by tropical depressions “Agaton” in January 2014, and “Senyang” towards the end of December, Caraga attained rice self-sufficiency at 107.16% based on 2014 projected population and 2008-2009 Survey on Food Demand and Consumption.

Although the region was reported to have produced enough rice for local consumption, the National Food Authority (NFA) recorded 339,499 bags of imported rice that were used as buffer stocks in cases of calamities and other emergencies to ensure food security for the year with consideration on rice requirement for the 1st quarter of 2015.

About 38.45% of the imported rice (130,534 bags) were distributed to accredited retailers and government agencies such as DSWD and LGUs with Memorandum of

Vol. XVIII

Agreement on Credit Sales with NFA. Corn Corn production increased by 16.68% from 107,476 MT in 2013 to 125,406 MT in 2014 making Caraga one of the five regions in the country that hit their target for the year.

The increase is due to increases in yield and area harvested with 41,957 hectares in 2014 compared to 38,017 hectares in 2013 as farmers opted to plant corn instead of rice in anticipation of the onset of El Niño phenomenon. This favors corn production under Caraga condition and the appropriate farming technologies and facilities that were established for the commodity.

Agusan del Sur contributed 78.04% to the total regional yield with a total production of 97,864 MT in 2014. Agusan del Norte followed with 15,153 MT. Fruits Fruit production increased by 14.77% from 243,509.92 MT in 2013 it increased to 279,475.29 MT in 2014.

Banana contributed 87.23% of the total fruit production as it grew by

Issue 2

17.014% from 208,303.19 MT in 2013 to 243,791.92 MT in 2014. This growth is attributed to expansion of harvested area for Cavendish

by DOLE and Sumifru.

Vegetables Vegetable production increased by 3.34% from 79,164.11 MT in 2013 to 81,811.85 MT in 2014 despite decreases in production of soybeans, jackfruit young, camote tops, pao galiang and green papaya. The growth is attributed to expansion of harvest areas for camote, eggplant, squash, okra, pechay and gourd.

Camote contributed 39.18% followed by cassava with a 21.00% share. In terms of production by groups, major vegetables contributed 65.72% share followed by priority vegetables with 26.45% share while other types of vegetables had a 7.86% share.

Non-Food and Industrial Crops Non-food and industrial crops declined by 0.88% with a total production of 983,427.98 MT compared to 992,188.68 MT in 2013. This lower yield is largely due to the decrease in production of coconut, lesser nuts harvested

23

per bearing tree and the decrease in coffee production brought about by lesser berries developed due to prolonged hot weather. On the other hand, an increase in production of oil palm was recorded due to continued recovery from Typhoon “Pablo.”

Although coconut production decreased by 1.61% in 2014, it remained as the top contributor with 83.54% share. Palm fruit, which presented a 3.00% increase in 2014 compared to previous year‟s output, followed with a 14.28% share.

Despite production decline, major non-food crops, contributed the highest with 85.36% share or 839,460.02 MT. It is followed by priority non-food crops contributing 14.49%.

Livestock and Poultry Livestock production contracted by 1.89% from 46,065 MT in 2013 to 45,196 MT in 2014.

Swine production, which contributed 88.12% of the total livestock production in 2014, decreased by 1.22% compared to 2013‟s total output.

On the other hand, poultry production increased by 14.05% reaching

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18,221.00 MT in 2014 compared with 15,976.00 MT in 2013.

Further, all poultry products increased led by chicken with a total contribution of 72.25%.

Caragaâ€&#x;s total chicken production contributed 0.84% to the total volume of the countryâ€&#x;s production placing the region at the bottom four.

In 2014, the inflow of dressed chicken shipped in Caraga increased by 58.90% with a total of 732,424 heads due to the increase of demand by commercial establishments.

The largest volume of dressed chicken outflow was recorded in the period of September 2014 at 179,780.8 kg. No records of dressed chicken outflow were reported in the months of April and December.

Fishery Fish production declined by 3.33% or 2,927.83 MT less than the recorded total of 88,040.65 MT in 2013. The decrease was attributed to the lesser production of commercial and aquaculture sub-sectors by 5.65% and 12.05% respectively.

Municipal fisheries contributed 67.56% to toral production while aquaculture shared 26.58% of the total

fish harvest in 2014.

In 2014, BFAR recorded more harvest of milkfish in brackish water fishpond and marine cage, better yield of tilapia in freshwater cages and more appearances of Skipjack and yellow fin tuna.

On the other hand, seaweed production decreased particularly in the 2nd quarter of 2014 brought about by iceice disease and stunted growth in silted areas of Barobo and Lianga. Further, lesser area harvested for Tiger Prawn in brackish water fishpond and fewer transient commercial fishing vessels were noted during the year.

To produce quality tilapia and carp fingerlings and disperse the same to fishpond and fish cage/pen operators in the five provinces of the region, BFAR Caraga continue to support the Caraga Fisheries Research and Development Station for Freshwater Development at Anibongan, Kitcharao, Agusan del Norte. A total of 10.177 million pieces of tilapia and carp fingerlings were produced in 2014 and distributed 2.579 million pieces to 1,429 deserving fish farmers region-wide.

There were also 3.85 million fingerlings of carp and tilapia stocked in 30

communal bodies of water.

The stock served 142 LGUs including 67 academic institutions. Such activity was conducted in an effort to guarantee sufficient supply of fish in worn-out areas.

To augment fisher folk income as well as boost fisheries production in the region, inputs such as bangus/tilapia fingerlings, prawn fry and lobster juveniles were distributed to small fishpond and fish-cage/ pen operators in 2014. A total of 970,000 pieces of bangus fingerlings were dispersed in the Provinces Dinagat Islands, Agusan del Norte, Surigao del Norte and Surigao del Sur benefitting 313 fish-farmers. Further, 10,000 pieces prawn fry were distributed to 45 fishpond operators in the Province of Agusan del Norte. A special request for 38,000 pieces of tilapia fingerlings was also provided.

In addition, 200 seaweed growers in the Provinces of Surigao del Norte, Surigao del Sur and Dinagat Islands were provided seaweed propagules and seaweed farm implements.

Through the formation of the Fisheries Post-Harvest and Marketing Division in 2014, marketing activities were strengthened. Around

Vol. XVIII

56 market matching activities were conducted.

Furthermore, this division of BFAR intensified the promotion of developed fishery products of the region.

Forestry Estimated log production in 2014 demonstrates a growth of 16.17 % with a total of 688,904.25 cubic meters (cu.m.) compared to 2013‟s production of 593,031.98 cubic meters. A substantial portion of the growth was contributed by increased Private Tree Plantation Ownership Certificates (PTPOC) production.

Pursuant to Executive Order 26 issued by President Benigno S. Aquino III, the implementation of the National Greening Program (NGP) was declared as a government priority program which strategically addresses the interrelated concerns on food security, biodiversity and climate change mitigation and adaptation.

In 2014, DENR-Caraga achieved 101% % of its NGP annual target under the Regional Office-Based fund covering 16,292 hectares of land with 8,883,839 seedlings of various species of timber, rubber, cacao, coffee, mangrove and indigenous

Issue 2

tree species. Agusan del Sur accounted for 80 % of the said total area. Under its Central Office-Based Funds, DENR accomplished 100% of its target with a total of 130 hectares covered.

According to DENR, NGP aims to plant 1.5 billion seedlings in a total of 1.5 million hectares of land all over the country from 20112016. As of 2014, the department exceeded its target by 11.6 %. In the entire country, a total of 1,005,013 hectares were already developed out of the actual target of 900,000 hectares from 2011 to 2014.

The implementation of Executive Order No. 23 provided clear directives to DENR on intensifying campaign against illegal logging operations to safeguard the remaining natural and residual forests while encouraging the establishment of industrial tree plantation. To complement the said order and to express Caraga‟s full commitment in protecting the remaining forest against illegal activities, the Regional Multi-Sectoral Forest Protection Committee was institutionalized in the DENR system pursuant to DAO No. 95-17. The initiative was strengthened though RDC

25

Resolution No. 14 Series of 2012 recognizing the committee as part of the RDC working committees.

Per record of DENRCaraga, the protection of some 391,806 has. untenured forest resulted in the confiscation of 3,715.73 cu.m. and 8 paraphernalia and conveyances with an estimated value of PhP32.05 million. This amount compensated for the PhP15.7 million invested by the government on forest protection activities.

Morever, based on the report submmited by different ENR Offices, Caraga Region had collected a total of PhP 3.75 Million for 2014 in which PhP 2.12 Million was collected from forest charges and PhP 1.63 Million from other fees and charges.

Trade and Industry In 2014, Caraga‟s total domestic sale reached 611.86 million showing a 33.35% growth from 458.85 million posted in 2013. Around 30.30% of the total domestic sale in the region or PhP185.37 million was attributed to the sales of Agusan del Sur. It was followed by Agusan del Norte with 22.62% (PhP138.40 million); Surigao

caraga today

26

del Norte and Surigao del Sur followed with 19.86% (PhP121.50 million) and 19.51% (PhP119.40 million) respectively; the Province of Dinagat Islands covered 7.71% or PhP47.19 million.

In terms of growth, Agusan del Sur led the provinces with a 54.08% increase in 2014 compared to previous year‟s figure.

Agusan del Norte followed with a 38.16% growth.

Surigao del Sur posted a 4.32% increase while Surigao del Norte‟s domestic sale contracted by 1.95%.

On registration of new business names, DTI-Caraga recorded an aggregate of 6,472 in 2014. This represents a 6.19% growth or 377 new business names registered in DTI from 6,095 in 2013. Agusan del Norte contributed the biggest share with 41.92%, followed by Surigao del Norte with 23.78%. Accordingly, the highest increase of new business name registration in 2014 was in Agusan del Norte with 10.60 , closely followed by Agusan del Sur with 10.19%.

Mining and Quarrying Twenty-five mining companies were involved in mineral production in the entire region. Twenty-two of

these firms hold Mineral Production Sharing Agreements (MPSA), one with Mineral Processing Permit (MPP) and two with Joint Operating Agreement (JO).

Nine of the MPSA companies are located in the Province of Dinagat Islands (PDI), seven in Surigao del Norte, three in Surigao del Sur, two in Agusan del Norte and one in Agusan del Sur. On the other hand, 28 mining companies conducted exploration activities. Twelve of these are under MPSA while 16 are with Exploration Permits (EP).

Mineral exports in the region increased by 166.20%; from PhP29.84 billion in 2013 it increased to PhP79.44 billion in 2014. This growth is attributed to increase in nickel ore volume by 33.58% representing an aggregate of 43.21M wet metric tons (WMT). As for Gold Bullion, 87,920.97 oz. representing a 30.64% increase from 2013‟s figure was recorded. Around 99.94% of the uptick is on the 17 shipments of Philsaga Mining Corporation to Hong Kong; and the remaining 0.06% or 50.46 oz. to Greenstone Resources Corporation‟s sole shipment to Switzerland.

On the other hand, silver, dropped by 58.10% from 55,440.83 oz. in 2013 to 23,230.61 oz. in 2014.

Subsequently, this reduced silver‟s total value of exports by 66.36%. Shipments of silver were recorded to have been dominated by Philsaga Mining Corporation with 17 shipments to Hong Kong.

About 46,767.35 WMT of mixed sulfides (nickel and cobalt) worth PhP346.85 million was shipped to Japan

by Taganito HPAL Nickel Corporation. Moreover, Krominco, Inc. exported 5,289.56 oz. of chromite.

MGB-Caraga recorded 759 shipments reflecting a growth of 22.82% from 2013 performance. The shipments generated PhP1.59 billion in excise tax and PhP2.70 billion in royalties representing 166.39% and 125.00% growth from 2013 figures, respectively.

Mining and quarrying industry provided 22,296 employment, a 9.49% increase compared to 2013 figures. In addition, 94% of those employed in 2014 are males.

Manufacturing Manufactured forest products considerably dropped compared to 2013‟s output.

Manufactured products in

Vol. XVIII

2014 (493,049.84 m3) is 36.28% lower than 2013‟s production of 773,742.74 m3.

Major manufactured products include veneer, plywood, lumber and blockboard owing 36% to veneer production followed by plywood at 26%.

Services Financial Services Total Assets of the region decreased by 6.58% in 2014 of a total of PhP34,324.73 million compared to previous year‟s sum of PhP36,740.72 million. Of the total assets, Universal and Commercial Banks comprised the biggest share with 77.69%. It was followed by Rural Banks and Thrift Banks with 13.61% and 8.70% shares respectively. In terms of provincial distribution, Agusan del Norte contributed 42.32% of the total assets followed by Surigao del Norte with 24.73 percent share.

Total Operating Income decreased significantly by 54.93% from PhP2,144.93 million in 2013 to an aggregate of PhP966.65 million in 2014. All bank types posted a declining operating income with Universal/Commercial Banks exhibiting the greatest drop

Issue 2

of 59.11%, followed closely

by Rural Banks with 54.38% and Thrift Banks with a 50.43% decrease.

Tourism Tourist arrival increased by 19.90% in 2014. It peaked during the fourth quarter covering 41.66% of the total number of tourists which reached a total of 2,440,635.

Among the provinces, tourist arrivals were highest in Surigao del Norte where the famous Surfing Capital of the country is located, the Siargao Islands. Both foreign and local tourists crowded the islands all year-round and peaked in the summer season and during the International Surfing Cup and International Game Fishing Tournament. It was followed closely by the Province of Agusan del Sur. Among cities, Butuan City had the highest tourist arrivals contributing 25.21% share to the region‟s total tourist arrivals followed closely by Surigao City with 24.76% share.

Surigao del Sur tourist sites were most visited in 2014 including Tinuy-an Falls (Bislig City), Enchanted River (Hinatuan) and Britania Islands (San Agustin).

Siargao Islands and Bucas Grande in Socorro were among the most visited in

27

Surigao del Norte.

Local tourists also considered Lake Bababu in the Province of Dinagat Islands and Sarnimian Inland Resort in Rosario Agusan del Sur. Nature lovers and adventurers opted for Agusan Marsh; while tourists who preferred history and culture visited the Church Ruins in Banza, Butuan National Museum and Balanghai Shrine in Butuan City, Agusan del Norte.

Air Transportation Flights reached a total of 6,982 in 2014, which is 7.68% higher than the flights in 2013. The increase is attributed to the reopening of Tandag City Airport in the third quarter of the year and the development of additional evening flights by Cebu Pacific Air at Butuan City Airport.

Total incoming passengers reached 343,978, which is a 6.70% increase from 322,371 in 2013. On the other hand, overall number of outgoing passengers reached 357,226, which is a 7.02% increase from the figure in 2013.

Butuan airport was the preferred airport of passengers from several areas in Misamis Oriental because Laguindingan International

caraga today

28

Airport is an hour away from Cagayan de Oro City proper.

Butuan City Airport hold the record of most number of flights in 2014 with a total of 4,328 with an aggregate of 550,899 passengers for both incoming and outgoing flights. Surigao City Airport follows with figures two or three folds lower than that of Butuan. Moreover, a slight increase of 0.15% in the 2014 total incoming cargoes of 3,739,104 kilograms was noted; while total outgoing cargoes of 2,547,923 kilograms registered a drop of 2.22% from its 2013 figure.

Shipping and Cargoes Ship calls increased by 105.89% in 2014 which reached a total of 20,085 compared to 9,755 in 2013.

Domestic ship calls contributed 95.97% to this growth because it increased from 9,059 in 2013 to 19,276 in 2014 or an increment of 112.78%. This increase was the result of MV Seaborne Cargo‟s and MV Super Shuttle RoRo 8‟s entry at Nasipit Baseport and increase in vessels at Masao for shipment of sand and gravel.

On the other hand, foreign ship calls also increased by 16.24% from 696 in 2013 to 809 ship calls

in 2014 because of the entry of Agata Mining Ventures, Inc. (AMVI).

AMVI is a joint venture company with TVI Resources Development (Phils.) Inc. (TVIRD), the Philippine unit of Canada‟s TVI Pacific Inc., holding 60% interest in AMVI; the remaining interest being held by Mindoro Resources Ltd. TVI currently has a 30.66% interest in TVIRD as well as a 14.4% equity interest in Mindoro, and thereby has a 24.2% indirect ownership interest in AMVI. AMVI is authorized to develop, extract and trade iron, nickel and other associated minerals. With a clearance to establish port facility, AMVI has conducted direct shipping ore operations of high-iron laterite resources at the Agata Project.

Generally, inbound domestic cargo throughput is higher than outbound. In 2014, inbound increased by 19.30% or 313,983.12 MT due to an increase in shipment of iron and steel, general cargoes and equipment transport.

Outbound likewise demonstrated a 6.31% increase or 48,187.84 MT from the 2013 figure. This upturn is attributed to the increase in the shipment of

crude palm oil, sand and gravel, grains, fruit and vegetables, bottled goods and other general cargoes.

Foreign import throughput increased by 173.30% from 356,867.00 MT in 2013 to 975,313.64 MT in 2014. Foreign export throughput reached 36,575,040.92 MT in 2014 posing a growth of 9.29%.

Land Transport Motor vehicle increased by 2.69% from 116,735 in 2013 to 119,880 in 2014. The increase was attributed to the upturn of private motor vehicles registration during the year comprising 89% of the total registered vehicles.

Agusan del Norte posted the most number of motor vehicle registration which comprised 58.19% of the total registration.

Development Prospects Transport Services With the influx of 6,000 foreign and local tourists visiting Tinuy-an falls in 2014, the city is becoming a promising place for the Philippine Airlines‟ (PAL‟s) business venture. On this note, PAL plans to establish flights from Bislig City to Cebu City or Manila utilizing a 77-seater turbo prop planes.

Vol. XVIII

The planned direct flights to Bislig City will make the city more accessible and would open new doors for job creation for the residents, boosting the economy of the city.

Agricultural Development Caraga Region recognizes soybeans as one of the food sources used by local government units in fighting malnutrition. To support the endeavour, the Department of Agriculture (DA) Caraga will spearhead the updating of the regionâ€&#x;s Soybean Roadmap and organize soybean producers in order to establish an aggressive marketing linkage to big buyers or processors.

Furthere, DA envisions an expansion of areas to be planted with soybeans mostly in San Miguel and Tago, Surigao del Sur and in Trento, Agusan del Sur. On its 2nd year of implementation, the Philippine Cold Chain Project (PCCP) will continue to establish and upgrade two ice plants with cold storage facilities in the Provinces of Dinagat and Surigao del Sur as well as the establishment of a Regional Integrated Marketing Center in Agusan del Norte.

Issue 2

Mining Industry The Philippine unit of Canadaâ€&#x;s TVI Pacific Inc. pronounces a continued increase in Agata Mining Ventures Inc. (AMVI) direct shipment of nickel ore with a goal of 2.5 million WMT in 2015. In order to achieve this goal, AMVI expects to increase its shipment schedule to four shipments of limonite ore per month and at least one to two shipments of saprolite ore per month once causeway expansion and stockpile area development work is completed.

In February 2015, AMVI completed a shipment of 55,400 wet metric tons (WMT) of nickel limonite ore with an estimated worth of 30.6 million pesos. In addition, AMVI plans to ship nickel saprolite ore of higher grade to secure higher selling prices.

Forestry The Department of Environment and Natural Resources Caraga targets to plant 11,948,600 seedlings in a total of 16,591 hectares of land in the five provinces of Caraga under the National Greening Program for 2015.

Agusan del Norte is set to plant 2,229,900 seedlings in a total of 2,998 hectares of land while Agusan del Sur aims to

29

plant 5,190,000 seedlings in a total of 7,705 hectares. On the other hand, Surigao del Sur committed 2,809,400 seedlings to be planted in a total of 4,274 hectares and Surigao del Norte targets a total of 782,200 seedlings for 1,341 hectares land area.

Dinagat Province targets to plant 136,500 seedlings in a total of 273 hectares of land.

Tourism According to the Department of Public Works and Highways, Agusan del Norte can expect a boost in tourism with the newly completed road improvement project.

The PhP133-million project funded by 2014 Department of Tourism-DPWH Convergence Program involves the upgrading of 6.8 kilometers of the NRJ Tagcatong-Vinapor Road in Carmen town. This allows better access to tourists heading to Jurassic Beach Resort, Bollihon Beach and the unspoiled Diwata Cave.

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1st Quarter 2015 Regional Project Monitoring Report The Regional Project Monitoring Committee conducted its 1st Quarter 2015 project monitoring on March 11-13, 2015 in the four provinces of the region. A total of 20 projects were monitored of which ten were in Agusan del Norte, five in Surigao del Sur, four in Agusan del Sur and one in Surigao del Norte. These projects include roads, irrigation, airport, public market, wharf and school buildings.

Average slippage for these projects is 48.54, which unduly delays the completion

Name of Project

Agusan del Norte Road Upgrading (Gravel to Concrete) of Buenavista-Bunaguit Road NEDA/RDC Building Rehabilitation of Baleguian Communcal System in Baleguian, Package 1 (main canal)

Butuan City PianingTandag Road Butuan Airport Development Project Construction of Butuan City South Market Rehabilitation of Baleguian Communcal System in Baleguian, Package 2 (Diversion Dam) Construction of Drainage System along Surigao Wharf Road Improvement/Widening of Daang Maharlika

of the projects. The figure indicates that project implementation were delayed by almost half of the period indicated for completion which is measured in number of calendar days. The highest slippage was registered by the rehabilitation project of Baleguian Communal System in Baleguian in Agusan del Norte. Some of the causes of slippage include contract termination, security issues, equipment failure and onset of typhoon.

Physical Accomplishment in % (as of February 28, 2015)

Implementing Agency

Cost in Million (PhP)

DPWH RO

128.612

100

100

-

48.206

80

80.49

0.49

Ongoing

10.518

38.16

76.21

38.05

Butuan DPWH RO 139.107 City Butuan DOTC Central 33.149 City Office Butuan Butuan City 49.792 City LGU Jabonga DAR/NIA 18.679

45.13

75

29.87

100

100

-

Delayed due to security issues, unfavorable weather condition and financial capacity of the contractor Ongoing and ahead of schedule Completed

100

99.58

'(0.42)

For completion

16.32

100

(83.68)

Contract terminated; continued under Force Account Work

Project ongoing but delayed due to RROW Project ongoing but delayed due to RROW

Location

Buenavista

Butuan NEDA Caraga City Jabonga DAR/NIA

Status

Planned Slippage Actual (%) (%) (%)

Surigao City

DPWH 1st DEO

16.302

100

93.75

(6.25)

Surigao City

DPWH SDN 1st DEO

46.200

97.38

92.37

(5.01)

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Issue 2

Name of Project

Location

Implementing Agency

Expansion of Surigao Airport Existing Passenger Terminal Building

Surigao City

DOTC Central Office

Agusan del Sur Umayam River Irrigation La Paz & Project (URIP) Loreto Construction of Diversion Dam and its Appurtenant Structures Road Upgrading (Gravel Bayugan to Concrete) of NRJ City Bayugan-Calaitan-Tandag Road Rehabilitation/Major Bayugan Repair of Sta. Irene City Bridge along NRJ Bayugan-Calaitan-Tandag Road Construction of 2-Storey, La Paz 10-Classroom Doǹa Adela ADS Central Elementary School Surigao del Sur Rehab./Improv't of NRJ Barobo Dughan-Javier, FMR (PCCP) with Bridge, D'San Javier ARC Tago-Lapaz Bridge along Tago Surigao-Davao Coastal Road (Alternate Road) Construction of Additional one (1) Span Hubo Bridge and Bank Protection along Surigao-Davao Coastal Road Aras-asan Port Improvement Project

Road Upgrading (Gravel to Concrete) of SurigaoDavao Coastal Road (Boundary SDNCarrascal, SDS) Surigao del Norte Construction/Improvement of Access Roads Leading to Tourism Destination, Circumferential Road Leading to Lake Mainit

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Cost in Million (PhP) 23.758

Physical Accomplishment in % (as of February 28, 2015)

Status Planned Slippage Actual (%) (%) (%) 100 100 Completed

NIA-URIP PMO

173.036

26.6

19.52

(7.08)

DPWH RO

66.69

100

100

-

DPWH ADS 1st DEO

11.000

DPWH ADS 2nd DEO

11.944

DPWH RO

41.218

75.14

65.42

(9.72)

DPWH SDS 1st DEO

60

100

100

-

San Agustin

DPWH SDS 1st DEO

81.091

59.5

54.61

(4.89)

Cagwait

PPA Head Office

71.554

no data

no data

Carrascal

DPWH RO

100.239

100

100

Mainit

DPWH SDN 1st DEO

45.838

Ongoing but delayed

Project completed

Notice to Proceed just issued on Some portions need March 3, 2015 repair; PE to submit a variation order regarding proposed repair 100 100 Completed

98.56

98.66

Delayed due to equipment failure

Substantially completed Slightly delayed due to washed out detour staructure caused by TS Seniang

no data Ongoing; no PPA personnel was present in the project site Project is completed 31.05% ahead of schedule

0.10 Ongoing for completion

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How the local government units are rated:

The 2015 Cities and Municipalities Competitiveness Index

Source: www.competitive.org.ph

by Sherwin E. Verdun, NEDA-Caraga

A more competitive Philippines.

This is the vision of the National Competitiveness Council (NCC) created in 2006 to promote and develop national competitiveness strategies and push for the implementation of the competitiveness agenda and link this to the Philippine Development Plan (PDP).

To be a competitive country, the cities and municipalities have to be competitive as well to attract investors and create employment. Thus, raising regional standards.

NCC aims to improve the Philippinesâ€&#x; standing in international competitiveness rankings and move the country from the bottom third to the top third tier by 2016.

The Cities and Municipalities Competitiveness Index (CMCI), which is designed by NCC will measure competitiveness of a city or municipality using 28 indicators grouped into three equallyweighted pillars: Economic Dynamism, Government Efficiency, and Infrastructure.

Scores on each pillar are combined to form the overall rating used to rank cities and municipalities.

Economic dynamism refers to "activities that create stable expansion of businesses and industries and higher employment" and is measured by the following eight indicators: 1. Size of the local economy (as measured through business

registrations, capital, revenue, and permits); 2. Growth of the local economy (as measured through business registrations, capital, revenue, and permits); 3. Capacity to generate employment; 4. Cost of living; 5. Cost of doing business; 6. Financial deepening; 7. Productivity; and 8. Presence of business and professional organizations Government efficiency refers to "the quality and reliability of government services and support for effective and sustainable productive expansion" and is measured by the following ten indicators: 1. Transparency score in Local Governance Performance Management System; 2. Economic governance score in Local Governance Performance Management System; 3. Ratio of LGU-collected tax to LGU revenues; 4. LGU competition-related awards; 5. Business registration efficiency; 6. Investment promotion; 7. Compliance to national directives for LGUs; 8. Security;

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Issue 2

9. Health; and 10. Education Infrastructure refers to "the physical building blocks that connect, expand, and sustain a locality and its surroundings to enable the provision of goods and services" and is measured by the following ten indicators: 1. Existing road network; 2. Distance from city/municipality center to major ports; 3. DOT-accredited accommodations; 4. Health infrastructure; 5. Education infrastructure; 6. Availability of basic utilities; 7. Annual investments in infrastructure; 8. Connection of ICT; 9. Number of ATMs; and 10. Number of public transportation vehicles For 2015, the CMCI Assessment will cover 1,000 local government units (LGUs), doubling last year‟s coverage of 535 LGUs. This year‟s search will have four different categories, namely: highly urbanized cities; component cities; 1st and 2nd class municipalities; and 3rd to 6th class municipalities.

The CMCI will also introduce a new ranking methodology for provinces and will give away 39 awards to the best performing local government units. Evaluation has started last February and will end May 2015.

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2014 Ranking City Butuan City Surigao City Cabadbaran City Bislig City Bayugan City Tandag City Municipality Prosperidad San Francisco Buenavista Sibagat Claver Esperanza Talacogon Bunawan Nasipit Cantilan San Miguel Barobo San Jose Loreto La Paz Trento San Luis

Source: www.competitive.org.ph

The Philippines‟ rankings in major international competitiveness reports.

Source: www.competitive.org.ph/rankings/

Score Rank 40.34 16 36.05 29 31.73 62 30.34 77 30.30 78 30.20 80 Score Rank 34.25 32 33.75 41 33.65 42 31.47 76 31.21 82 30.98 87 30.35 99 29.20 119 29.02 122 29.00 123 28.52 139 26.84 172 26.49 178 25.80 196 25.71 199 24.55 215 12.70 366

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What has been done: The ASEAN Economic Community Integration

by Sherwin E. Verdun, NEDA-Caraga

This report sourced from the ASEAN Secretariat shows by far the accomplishment of the ASEAN in creating the ASEAN Economic Community (AEC) by 2015 which is characterized by free movement of goods, services, investment, skilled labor, and freer flow of capital.

By integrating ASEAN economies, the AEC will become a single market and production base as such, ASEAN would become more dynamic and competitive.

There are four pillars to the AEC: 1) Single Market and Production Base; 2) Competitive Economic Region; 3) Equitable Economic Development; and 4) ASEAN‟s Integration into the Global Economy.

ASEAN has made significant progress in each of these pillars that opened up new opportunities for both investors and ASEAN nationals.

Pillar 1: Single Market and Production Base The first AEC pillar has five core elements, namely, free flow of goods; free flow of services; free flow if investment; freer flow of capital; and free flow of skilled labor.  





Tariffs already near zero.

The ASEAN Trade in Goods Agreement created a legal framework to realize the free flow of goods within the AEC. The ASEAN Framework Agreement on Services eases restrictions on crossborder trade in at least 80 subsectors.

The ASEAN Comprehensive Investment Agreement liberalizes, protects cross-border investment activities, and embraces international best practices in the treatment of











foreign investors.

Pilot program for the ASEAN SelfCertification System for exporters launched.

Member States testing preliminary exchange of trade data and information through the ASEAN Single Window Gateway.

Mutual Recognition Arrangements (MRAs) in place on testing standards in many areas.

Stock exchanges from ASEAN-5 and Viet Nam have collaborated to form ASEAN Exchanges.

MRAs concluded in eight professions to facilitate the movement of ASEAN professionals in these areas through recognition of their qualifications.

Pillar 2: Competitive Economic Region  AEC seeks to foster a culture of fair competition, including institutions and laws that underpin the effort, including protection for consumers and guarantees for intellectual property rights.  ASEAN Member States intensifying their efforts to introduce competition policy and law by 2015.  Outreach activities underway to educate the public on the importance of competition policy.  The ASEAN Highway Network is physically connecting key roadways, including the priority Transit Transport Routes, a vital infrastructure and logistics component.  Six (out of planned 16) cross-border connections of the ASEAN Power Grid already in operation. The TransASEAN Gas Pipeline will connect ASEAN‟s gas pipeline infrastructure.  The agreements and protocols under

Vol. XVIII



Issue 2

the ASEAN Open Skies Policy have been concluded and implemented.

Telecommunication infrastructure is also undergoing continuous enhancement.

Pillar 3: Equitable Economic Development  There are thirty business incubators and innovation centers under the ASEAN Business Incubator Network to promote business matching and development.  The ASEAN SME Guidebook towards the AEC 2015 has been developed.  The Initiative for ASEAN Integration has developed new approaches so that the benefits of the AEC are evenly shared between all Member States.  The ASEAN Framework for Equitable Economic Development was introduced in 2011.

Pillar 4: Integration into the Global Economy  “ASEAN+1” Free Trade Agreements (FTAs) with the People‟s Republic of China, Japan, the Republic of Korea, Australia, New Zealand and India position ASEAN at the centre of global

35







supply chains.

ASEAN is negotiating the Regional Comprehensive Economic Partnership (RCEP), a regional agreement involving ASEAN and its six FTA partners. RCEP will represent a combined GDP of about US$21.2 trillion, which is about 30% of global GDP, and a market of 3.4 billion people (48% of the world‟s population).

A survey conducted by the US Chamber of Commerce revealed that 54% of American companies had an ASEAN strategy in place.

The ASEAN Business Advisory Council (ABAC) report noted that in the 2013 ABAC Survey on Competitiveness, almost half of the businesses surveyed (48% of respondents) said they take into account the attractiveness of the ASEAN region as a whole when planning investment strategies.

According to this report, business interest in the AEC will continue to rise and start to develop ASEAN strategies as part of their corporate policies.

caraga today

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DOST 12 invites public to its Halal Laboratory

by Sherwin E. Verdun, NEDA-Caraga

The Halal Industry is emerging as a lucrative global market force with the growing demand for Halal certified products, both in Muslim and non-Muslim countries.

The Department of Science and Technology-12 (DOST-12) through the Caraga Regional Development Council (RDC) is inviting manufacturing firms, food exporting entities, and Halal accreditation and certifying bodies to utilize its Halal Laboratory to ensure Halal integrity in food and non-food products.

The Regional Development Council-12 supported DOST-12 in promoting its Halal Laboratory and Science Center by issuing Resolution No. 150, series of 2014, “Endorsing the Institutionalization of the Philippine National Halal Laboratory and

Science Center” during the 36th RDC-12 Regular Meeting last December 7, 2014.

Located in Koronadal City, the Halal Laboratory and Science Center envisions to serve as the country‟s clearing house for all Halal products manufactured and processed for domestic and international consumption, as well as the country‟s accrediting body for laboratories and as certifying body of all Halal products in terms of their scientific and technical aspects.

One of DOST‟s thrusts is to achieve innovative, cost-effective and appropriate technologies that enable micro, small and medium enterprises (MSMEs) to develop and produce competitive products that meet world-class standards.

The Global Forum on Research and Innovation for Health 2015 Film Festival August 24-27, 2015 Manila, Philippines Qualified Genres Short Film - minimum of 5 minutes, maximum of 20 minutes Documentary - minimum of 5 minutes, maximum of 20 minutes Animation - minimum of 5 minutes, maximum of 20 minutes Awards (Short Film, Documentary and Animation) 5 shortlisted entries in each genres will win PhP 15,000 and 1 winner of PhP 100,000.

Start of Submission and Deadline of Entries Open for submission May 18, 2015 – July 15, 2015.

Visit the website for details: http:// filmfest.forum2015.org/