Caraga Today April-June 2018

4| NEDA opens PPP Knowledge Corner in Caraga 6|Caraga Regional Development Council endorses PhP225.06 B proposed budgets for fiscal year 2019 25|2017 Regional Economic Situationer 35|Q1 2018 Regional Project Monitoring Report

today caraga

April-June 2018 Vol. XXI, Issue 2

A Publication of the Caraga Regional Development Council

CENTERFOLD

What are PPPs? 

What type of PPP projects the government can undertake under the PPP scheme? 

Who owns the PPP Projects? 

What is the government’s legal basis for entering into PPPs? 

caraga today Volume XXI Issue 2

April-June 2018

On this issue

HIGHLIGHT Public-Private Partnership Center Logo.

The logo of the PPP Center reflects the vision of progress and development for the Philippines within the global context, as signified by the spreading rays of the sun, and the figure of a globe with the Philippine map at the center. The half-globe is further bound by a half-circle connected to the sun’s rays. The circle represents the private sector as the wheels of development. The color gold, often associated with prosperity, depicts progress. The use of color blue, on the other hand, gives the impression that such progress is achieved within a peaceful and stable environment.

NEWS opens PPP Knowledge Corner 4 NEDA in Caraga

RDC consults Siargao on 12 Caraga FAmE

RDC conducts Advisory 5 Caraga Committee Meeting

14 Peace and Development Zones gain

Regional Development 6 Caraga Council endorses PhP225.06B

of Energy conducts public 15 Department consultation on flagship programs

proposed budgets for fiscal year 2019

8 Caraga economy expands in 2017 Investment Alternatives to 10 Potential Mining research kicks off in Caraga on IP Concerns talks on 11 Committee Peace and Development Zone

towards energy efficiency People meet for first 16 Indigenous Regional Summit hosts information caravan for 19 Caraga RA 10931: #FreeEducationNa!

FEATURES

18 Ease of Doing Business Act of 2018 up for implementation poverty rate declines; more well-paying jobs and opportunities 24 Philippines’ needed

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Editor’s Note Melanie A. Maur

The second quarter begins with the Launching of the PublicPrivate Partnership (PPP) Knowledge Corner in Caraga. In this issue, we highlight the launching of the PPP Knowledge Corner. The PPP Center collaborates with the National Economic and Development Authority (NEDA) to bring PPPs closer to the local level. At the centerfold, you will get a general idea about PPP including the type of projects the government can embark using various PPP modalities.

We also feature the salient provisions of RA 10931 otherwise known as the “Universal Access to Quality Tertiary Education of 2017”and RA 11032 or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” The article gives you an overview of the benefits of these new laws to the public.

This issue likewise presents the first Indigenous Peoples (IP) Summit in the region that tackled IP issues and allowed the concerned government agencies to respond accordingly. The government reassures that IPs are given priority to preserve their unique culture, protect IP rights, and ensure inclusion in the development. As an offshoot, the Regional Development Council (RDC) reactivates its special Committee on IP Concerns (CIPC), hence, you will also get a glimpse of the CIPC meeting

which introduced Peace and Development Zone (PDZ) as a strategy in implementing the Caraga Roadmap for Peace (CRMP).

The World Bank’s recently released article is also included which highlights Mindanao’s development as major gateway to position Philippines out of the vicious cycle of poverty. Senior Economist at the World Bank’s Poverty and Equity Global Practice cited, “Making a difference in Mindanao makes a big difference to the Philippines.

Increasing public investment in Mindanao to boost development there would expand opportunities for conflict-affected communities, broaden access to services and create more and better jobs.”

You will also get a glimpse of the 2017 Annual Regional Economic Situationer and the

Regional Project Monitoring updates. Further, this issue incorporates the consultations on FAmE in Siargao and flagship programs towards energy efficiency.

This issue will also inform us about the agencies’ RDC endorsed budgets for fiscal year 2019 and the 2017 report on the economy of Caraga Region.

Finally, we outline the status of the Build Build Build Projects in Mindanao.

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NEDA opens PPP Knowledge Corner in Caraga

by Gladys C. Giberson, NEDA-Caraga

The National Economic and Development Authority (NEDA) in partnership with the PublicPrivate Partnership (PPP) Center launched the PPP Knowledge Corner (PPP-KC) at NEDACaraga last April 24, 2018.

This initiative forms part of the government’s strategy to engage more local implementing agencies in rolling-out bankable and viable PPP projects in the countryside as it builds on the Administration’s thrust to expand development in the regions and spread economic growth outside Metro Manila.

NEDA Undersecretary for Regional Development Office (RDO) Adoracion Navarro, NEDA-Caraga RD Mylah Faye Aurora Cariño, and PPP Center Director for Capacity Building and Knowledge Management Service Division Jomel Anthony Gutierrez spearheaded the ribbon cutting that formally opened the Knowledge Center.

The knowledge corner will serve as an information hub, where updates and facts on PPP can be accessed by local government units (LGUs), government implementing agencies, and other stakeholders through learning materials, sharing of knowledge, capacity building, and provision of technical assistance.

Together with various implementing agencies, the PPP

Knowledge Corner, in close coordination with the PPP Center, will provide technical advisory services in the entire life-cycle of the critical PPP infrastructure and development projects – from development, approval and procurement, to implementation and monitoring stages. This is to ensure that projects are wellstructured and highly beneficial to the public.

During the opening ceremony, Usec. Navarro emphasized the country’s current physical environment that is now progressively being characterized as having a balanced and strategic development of infrastructure while ensuring ecological integrity.

“As the current administration embarks on the Build Build Build Program, the period 2017-2022 will be branded as the “golden age of infrastructure” in the Philippines. With that, the government aims at greater complementation of different

modes of financing and looks at PPP as the financing mechanism that would not only provide additional sources of funding but also stimulate innovation and technology transfer for better delivery of public goods and services,” Usec. Navarro explained.

PPP is a contractual arrangement between the government and a private partner targeted towards financing, designing, constructing, operating and maintaining infrastructure facilities and services that is implemented through Republic Act (RA) No. 6957 otherwise known as Build-Operate-Transfer (BOT) Law, as amended by RA 7718.

Municipal mayors, local planning officers, and representatives from various water districts, chambers of commerce, and regional line agencies attended the launching.

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Caraga RDC conducts Advisory Committee Meeting

by Paul Edward B. Castillo, NEDA-Caraga

The Caraga Regional Development Council (RDC), with RDC Chairperson Sol F. Matugas presiding, conducted the Advisory Committee (AdCom) meeting last 8 March 2018 at Speaker Belmonte Hall, Southwing Annex, Batasang Pambansa, Batasan Hills, Quezon City.

The AdCom meeting sought to engender the support of the Congresspersons for the RDCendorsed budgets of Regional Line Agencies (RLAs) and State Universities and Colleges (SUCs) for FY 2019. During the meeting, the Committee encouraged the RLAs to “think big” and to propose bigger but rational increases in their budgets.

Furthermore, Congresspersons expressed their support for the proposed budgets of Caraga RLAs. Fourteen RLAs presented

their proposed budgets for FY 2019 and the Congresspersons were given time to comment and ask for clarifications on the proposed FY 2019 budgets for enhancement.

The AdCom meeting was personally attended by six Caraga Congresspersons while three sent their Chiefs of staff. NEDARegional Development Office Undersecretary Adoracion Navarro graced the meeting and delivered a short message to the guests and participants.

The Advisory Committee is composed of the Caraga RDC Executive Committee (ExeCom) and the Caraga Congresspersons.

One of the functions of the Committee is to advise RLAs and SUCs in the preparation and review of their annual budgets.

From left to right: NEDA Caraga Regional Director Mylah Faye Aurora Cariño, NEDA USec. Adoracion Navarro and the Caraga RDC Chairperson, Gov. Sol Matugas of Surigao del Norte

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Caraga Regional Development Council endorses PhP225.06B proposed budgets for fiscal year 2019

by Hazel O. Fuentes, NEDA-Caraga

The Caraga Regional Development Council (RDC) endorsed PhP225.06 billion proposed budgets for fiscal year 2019 during its 93rd Full Council Meeting at the Provincial Convention Center, Surigao City.

The said budget represents the 2019 proposed budgets of 31 regional line agencies (RLAs) and five state colleges and universities (SUCs) of the region. The proposed budgets adhere to the guidelines and priorities set in the National Budget Memorandum 129 and region-specific guidelines and priorities set in the Regional Budget Call for FY2019.

About 79% of the total endorsed budget came from the Infrastructure Sector amounting to PhP177.43 billion, of which PhP170.83 billion is proposed by the Department of Public Works and Highways and PhP 6.20 billion is proposed by the National Irrigation Administration.

The Social Sector has a proposed budget of PhP40.97 billion with the Department of Education posting the highest proposed budget of PhP24.79 billion, followed by the

Department of Social and Welfare Development with proposed budget of PhP6.47 billion and the Department of Health with proposed budget of PhP4.15 billion.

Meanwhile, the Economic Sector has a proposed budget of PhP5.52 billion with the Department of Environment and Natural Resources having the biggest proposed budget of PhP1.82 billion.

The Development Administration Sector has a budget of PhP1.14 billion with the Philippine National Police contributing the biggest share of 0.28 percent.

The endorsement came after a rigorous process of consultations with different stakeholders including civil society organizations (CSOs). Besides deliberations in the four sectoral committees, the Caraga RDC conducted a Budget Forum and a Budget Consultation with CSOs and the Private Sector on January 26 and February 7, 2018, respectively.

During the consultations, the RLAs and SUCs presented their respective budgets to the CSOs and NGOs to generate comments

and recommendations.

Further, the FY 2019 RDCendorsed agency budget proposal was presented to the Caraga RDC Advisory Committee on May 8, 2018 to ensure alignment between the RDC priorities and the Congressional development agenda.

Caraga Region has an RDCendorsed budget for fiscal year 2019 of PhP225,058,905,730.

Eighteen percent of which is appropriated for social development, 79% for infrastructure development, 2.5% for economic development, and 0.5% for development administration.

The Department of Public Works and Highways has the biggest budget among agencies with 76% share followed by the Department of Education with 11% share, and the Department of Social Welfare and Development with 3% share.

The Bureau of Local Government Finance (BLGF) got the lowest proposed budget of PhP16.10 million.

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40.97B

1.14B

social development sector’s proposed budget

development administration sector’s proposed budget

5.52B

177.43B

economic development sector’s proposed budget

Agency

infrastructure development sector’s proposed budget

RDC Endorsed Budget

Agency

RDC Endorsed Budget

DPWH

170,834.935,720

DILG

189,339,990

DEPED

24,793,068,000

NHA

187, 311,000

DSWD

6,471,058,000

DOST

341,732,000

NIA

6,200,814,000

DOTC

328,277,000

DOH

4,153,632,000

DOLE

241,538,000

DENR DA CSU SSDSU SSCT ASSCAT

1,819,986,000 1,470,013,000 1,366,343,000 739,859,000 728,334,000 707,281,000

BJMP DTI EMB NCIP ATI POPCOM

196,977,780 192,423,000 179,611,060 95,152,000 93,907,250 86,469,000

PNU PNP

641,903,000 634,831,490

MGB MARINA

76,361,900 66,479,330

TESDA DAR CHED BFAR PCA

529,231,000 452,326,000 437,361,000 343,655,000 289,529,350

NEDA NCMF NAPOLCOM DOT BLGF

54,941,810 53,341,000 47,548,660 22,239,200 16,104,190

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Caraga economy expands in 2017 by the Philippine Statistics Authority Caraga

The Caraga Region’s economy expanded by 4.3 percent in 2017.

This is 2.5 percentage points higher than the growth recorded in 2016. This performance is just 0.2 percentage point short of the target stipulated in the Caraga Regional Development Plan 2017 -2022.

The Agriculture, Hunting, Forestry, and Fishing and Industry sectors recovered from their negative performance in 2016 while Services continued to expand in 2017.The AHFF sector slightly recovered from a negative 1.6 percent growth in 2016 to a positive 0.9 percent in 2017. Both Agriculture and Forestry, and Fishing posted growths of 1.0 percent and 0.3 percent, respectively. Several weather disturbances during the year such as TD Auring and TD Vinta in Surigao provinces, pest infestation, and occurrence of diseases may have impeded the further growth of the AFF sector.

Services remained to account

for the largest share in the region’s economy at 49.7 percent.

This is followed by Industry with 34.3 percent and Agriculture, Hunting, Forestry and Fishing with 16.0 percent.

Of the 4.3 percent growth of Caraga in 2017, Services contributed 3.5 percentage points.

Industry and Agriculture, Hunting, Forestry and Fishing contributed 0.6 percentage point and 0.2 percentage point, respectively.

The Industry Sector rebounded with a 1.8 percent growth in 2017 from a negative growth of 3.8 percent in 2016.

The growth is due to the expansion in Construction by 14.3 percent and Manufacturing by 5.0 percent. Mining and Quarrying (M&Q) and Electricity, Gas, and Water Supply both pulled down the growth of Industry with contractions of 4.3 percent and 6.1 percent, respectively.

Among the subsectors, M&Q accounts for the largest share to

GRDP at 18.5 percent.

However, M&Q’s performance persistently contracted; from a negative 8.5 percent growth in 2016, its growth in 2017 remains at negative -4.3 percent. Initial data from MGB as of 3rd quarter 2017 shows a decreasing production of nickel ore, gold, and silver (data for gold and silver from PMC only; no data from Greenstone Resources Corp yet). Moreover, prices of metals in the global market only started to improve in August 2017.

Despite the contracting performance, Caraga remains the main contributor of nickel all over the country as it accounts for 57 percent of the total metal production; and contributes about 82 percent of the total nickel production in the country.

Manufacturing continues to expand. However, its growth slightly slowed down in 2017.

From a 6.0 percent growth in 2016, it went down to 5.0 percent in 2017.The steady growth of the subsector can be attributed to the increase in number of wood processing plants in the region, and the sustained support provided by the government to micro, small and medium enterprises.

Construction continues to expand from a 2.5 percent growth in 2016 to 14.3 percent in 2017.

Although private construction

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slowed down in 2017, high spending in public construction resulted in remarkable growth of the subsector.

Service Sector continues to expand in 2017 with 7.2 percent growth. Although expanding, the subsector’s growth slowed down due to decreased performance of Financial Intermediation; from 14.7 percent growth in 2016, it went down to 8.1 percent in 2017.

This can be attributed to the decline in lending activities of microfinancing firms.

To sustain the growth of region, the following strategies will be pursued:  Diversify the region’s economy. With the AFF sector being prone to climaterelated hazards or weather disturbances, it is imperative to diversify the region’s economy particularly by promoting more value-adding and processing activities in agriculture and forestry, and the operationalization of the proposed special economic zones. Further, there is a need to explore the development of a knowledge-based economy in the region. Developing a knowledge-based economy

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requires investments in the education system, research and development and information technology.

Upgrade the skills of the region’s human resources.

Considering the high underemployment levels of the region, this strategy entails conducting initiatives to train and retrain the pool of workers. Continuous building of capacities will allow workers to shift to higher skill jobs that will eventually strengthen job matching in the region, thus improving Caraga’s employment structure.

Provide adequate infrastructure facilities. The region requires a more stable power supply, more concrete roads and bridges that will provide redundant access to key production areas and tourism sites, cold storage and post-harvest facilities, functional irrigation facilities, improved airports and seaports, digital infrastructure, social infrastructure including health facilities and solid waste management facilities.

Photo by: Department of Tourism-Surigao del Norte



Ensure public support for and enhance social assistance and livelihood programs. The social protection programs are essential interventions to improve the quality of lives of marginalized Caraganons. The region must ensure proper implementation of these programs in order to allow those living in extreme as well as moderate poverty to participate in and benefit from the developments of the region.

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Potential Investment Alternatives to Mining research kicks off in Caraga

by Sherwin E. Verdun, NEDA-Caraga

The PhP8 million 12-month research project Potential Investment Alternatives to Mining has kicked off with the Resources, Environment and Economics Center for Studies, Inc. (REECS) as Consultant.

The research will assess the social, economic, and environmental impacts of mining in Caraga. The project will also determine potential investment opportunities as alternatives to mining especially in the areas of agriculture, fishery, forestry and eco-tourism, and industries that will lead the region into a knowledge economy.

REECS will do the project in four parts. First, REECS will determine the extent of social, economic, and environmental impact of mining in Caraga Region. For social impact, REECS will study the effects of mining operations on the sociocultural aspects of the host and neighboring communities. For

economic impact, REECS will study the following: (1) effects of mining on the GRDP, (2) contributions of mining to local taxes and revenues and their utilization, (3) effects of mining on employment generation, (4) how mining affects per capita income, (5) influence of mining on economic activities, and (6) influence of mining on economic policies. For environmental impact, REECS will study the scale of mining operations and its effects on the environment. From the assessments, the Consultant will come up with Socioeconomic Impact and Environmental Impact Reports.

Second, REECS will determine potential investment opportunities as alternatives to mining using the following guide questions: (1) what available resources have investment potential, (2) where these resources are located, (3) how can these potential resources be

tapped, (4) what skills are needed to develop each investment potential, (5) what level of development is required in each investment potential, and (6) are there existing government or private interventions on these resources. The result will be translated into an Investment Portfolio for the region.

Third, REECS will develop a value chain analysis for each of the prioritized investment potential following these guide questions: (1) what products/ services can be manufactured/ produced from each potential investment, (2) what are the competitive advantages or disadvantages of each potential investment, (3) cost-benefit analysis of each investment potential relative to mining, (4) what technologies are needed, (5) how much employment can be generated for each potential investment, (6) what skills are needed in each value chain, and (7) what policy interventions are in place for each potential investment. The result of the analysis will comprise the Value Chain Analysis and Cost-benefit Analysis reports.

Finally, the Consultant together with NEDA-Caraga will conduct an Investment Congress in the fourth quarter of 2018.

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Committee on IP Concerns talks on Peace and Development Zone

by Hazel Fuentes, NEDA-Caraga

The Regional Development Council-Committee on Indigenous Peoples Concerns (RDC-CIPC) conducted its first meeting after three years on May 11, 2018 at the NEDA Conference Hall, Butuan City.

National Commission on Indigenous Peoples (NCIP) Regional Director Jose “Jake” Dumagan, Jr. chaired the meeting to discuss issues concerning the Indigenous Peoples (IP), and introduce the Peace and Development Zone (PDZ) as a strategy in implementing the Caraga Roadmap for Peace (CRMP).

RDC Vice Chairperson and NEDA Regional Director Mylah Faye Aurora Cariño presented the mandates and membership of RDC-CIPC, which was formed through RDC Resolution No. 33 Series of 2012 entitled, “Creating a Special Committee on Indigenous Peoples’ Concerns as

an Affiliate Committee of the Caraga Regional Development Council”, passed on 03 October 2012 during the 72nd Regional Development Council Meeting in Prosperidad, Agusan del Sur. The RDC-CIPC acts as oversight committee on IP issues and concerns in Caraga to ensure that these issues are provided preferential treatment and appropriate solutions; and that the same concerns are integrated in the local and regional development plans.

RDC-CIPC Chairperson Dumagan also presented the NCIP Mandate, and the Indigenous Peoples Rights Act (IPRA) provisions. Further, he gave updates on the long-standing issues related to delineation, titling, and preparation of Ancestral Domain Sustainable Development and Protection Plan (ADSDPP).

Mila Garcia of the

Department of Environment and Natural Resources (DENR) provided updates on the operationalization of the Joint Administrative Order No. 01 Series of 2012, “Clarifying, Restating and Interfacing the Respective Jurisdictions, Policies, Programs and Projects of the Department of Agrarian Reform (DAR), Department of Environment and Natural Resources (DENR), Land Registration Authority (LRA), and the National Commission on Indigenous Peoples (NCIP) in Order to Address Jurisdictional and Operational Issues Between and Among the Agencies.”

The presentation on the PDZs by Department of the Interior and Local GovernmentButuan City Director Ms. Charissa Guerta highlighted the initiatives of the Regional Peace and Order Council (RPOC) in addressing the identified major conflicts in the region. Ms. Guerta emphasized that PDZs will be implemented in the identified priority areas through the promotion of peace building process where reconciliation, institution building, political and economic transformation will be attained. She cited that the success of the PDZs require concerted effort of the Local Development Councils and the Local Peace and Order Councils.

The PDZs are hoped to contribute to the attainment of the RPOC’s vision, of “A Peaceful and Progressive Caraga with diverse, empowered and culturally sensitive communities living in a sustainable environment and enjoying equal rights and opportunities.”

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Caraga Regional Development Council consults Siargao on FAmE

by Sherwin E. Verdun, NEDA-Caraga

The Caraga Regional Development Council (RDC) headed by Gov. Sol Matugas of Surigao del Norte consulted the Siargao stakeholders on the region’s goal to become the Fishery, Agro-forestry, mineral, and Ecotourism (FAmE) center of the country on April 13, 2018 at Kapitolyo Nan Siargao, Dapa, Surigao del Norte.

During the consultation, FAmE-related agencies presented their programs and projects for Siargao. These agencies include: the Bureau of Fisheries and Aquatic Resources (BFAR), Department of Agriculture (DA), Department of Environment and Natural Resources (DENR), Mines and Geosciences Bureau (MGB), and Department of Tourism (DOT). Meanwhile, some support agencies were also

present, namely: Environmental Management Bureau (EMB), Department of Trade and Industry (DTI), Department of Science and Technology (DOST), and Department of Health (DOH).

Some of the issues raised during the consultation are on land conversion; rising prices of basic commodities; environmental preservation; fishery development; tourism development; trade and industry;

science and technology; and health.

On land conversion, it was agreed that local government units (LGUs) must ensure that the required Environmental Compliance Certificate (ECC) and Certificate of Land Use Conversion from the Department of Agrarian Reform are complied with before issuance of business permits. In relation to this, the RDC will lead a two-day orientation on Comprehensive Land Use Plan (CLUP) formulation, ECC processing, and land use conversion procedure, among other issues.

On observed increase in

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prices of commodities, LGUs are encouraged to organize or activate their Local Price Coordinating Councils in coordination with DTI. On environment-related concerns, the DENR was tasked to prepare a Wetland Development Plan. Also, the DENR and LGUs have to first secure clearance from Department of Public Works and Highways before planting trees along the roads.The participants also agreed that same species of tree will be planted in every area for aesthetics purposes. Further, LGUs are encouraged to explore the sea forest approach.

Furthermore, DENR commits to act on the concerns raised on the alleged tenurial instruments issued covering small islets and mangrove areas in Siargao Islands.

On fishery-development concerns, LGUs are encouraged to: consider declaring close season for fishing; and regulate shipping-out of fishery products to ensure that there is adequate

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food supply for locals.

On tourism-development related concerns, LGUs are encouraged to prioritize hiring of local tourism staff. DENR is also requested to look into the request of Dapa to identify areas suitable for farm tourism. DOT and LGUs are tasked to craft a 3-year Siargao Islands Tourism Development Plan; diversify tourism attractions and packages to include spiritual and farm tourism; and to professionalize tour guiding and strengthen home stay as alternative to resorts.

On environmental regulations, EMB is tasked to report the resorts and/or establishments operating without ECC or with ECC but have failed to comply with the conditionalities and its recommendations. EMB is also strongly urged to implement measures or sanctions for noncompliant establishments.

On health services, DOH is requested to study, if not assess, the viability of existing district hospitals even if there is a plan to establish a Cuban Model

Polyclinic and a tertiary level hospital in Dapa, Siargao Islands.

On Science, Technology and Innovation related concerns, DOT is requested to adopt the Food Inspection and Safety Standard in the accreditation of tourismrelated establishments.

The consultation was attended

by Rep. Francisco Jose Matugas II (1st District of Surigao del Norte), SP Elizabeth Matugas (1st District of Surigao del Norte), Mayor Emmanuel Arcena of Burgos, SB Peter Jade Ruaya of Dapa, Mayor Alfredo Corro II of Del Carmen, Vice Mayor Veronico Soroso of General Luna, Mayor Maria Liza Resurreccion of Pilar, and Mayor Lamberto DomiĂąos of San Isidro.

Assisting Governor Matugas were NEDA-Caraga Regional Director Mylah Faye Aurora CariĂąo, ARD Roy Kantuna, and technical staffs from NEDACaraga and concerned regional line agencies.

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RPOC, RDC orient local governments on Peace and Development Zones

by Gemeniano B. Crisante, Jr., NEDA-Caraga

The Regional Peace and Order Council (RPOC) and the Regional Development Council (RDC) jointly conducted the Peace and Development Zones (PDZ) Project orientations on separate but similar occasions last April 25, 2018 at the Prosperidad Municipal Hall and Bayugan City Hall in Agusan del Sur, and May 2, 2018 at the Sibagat Municipal Hall.

The PDZ is a cross-cutting and overarching approach initiated by both Councils in achieving peace and development in Caraga. It is a strategy to implement the Roadmap for Peace through the promotion of peace building process where reconciliation, institution building, political and economic transformation are aspired.

The PDZ concept treats barangays as direct partners in resolving socio-economic and developmental issues unique to the community. The PDZ requires barangay leaders to analyze and determine their local needs and issues which in turn will be addressed by the community itself with assistance from the regional line agencies (RLAs).

As a highlight of the orientation sessions, the concerned municipal, city, and barangay leaders expressed

support and commitment to the PDZ. Prosperidad Municipal Mayor Albin Magdamit and the concerned barangay captains expressed their support while Bayugan City Councilor Kirk Asis manifested the local government’s support on behalf of City Mayor Kim Lope Asis. Likewise, Sibagat Mayor Thelma Lamanilao and the concerned barangay captains also committed to the goals of the project.

Mediatrix Foundation, as external partner, will organize and facilitate the groundwork activities in the following pilot barangays: Magsaysay and San Lorenzo in Prosperidad, ADS; Villa Ondayon in Bayugan City, ADS; Tag-oyango and Kioya in Sibagat, ADS; and Lasicam in Gigaquit, SDN. These locations were selected due to the presence of 3-4 conflict lines, strong presence of NPAs, and where interventions to address insurgency are believed to be strategic.

The RPOC, through the Department of the Interior and Local Government (DILG), emphasized that PDZ will not treat the pilot barangays as beneficiaries but as partners. This means that partner RLAs will not

enter the sites with ready projects in hand but will partner with the barangay in establishing specific interventions. In turn, relevant government agencies will be tapped to act as enablers to meet these barangay-identified issues and needs.

The next phase of the PDZ project will be the roll-out of operational planning activities which will be participated by RPOC, RDC, Mediatrix, together with the local government stakeholders scheduled this June 2018.

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Department of Energy conducts public consultation on flagship programs towards energy efficiency

by Marx Rev Buenavidez, NEDA-Caraga

In a bid to improve energy efficiency in Mindanao, the Department of Energy (DOE) conducted a public consultation on its flagship programs to various stakeholders on April 5-6, 2018 in Davao City.

DOE Undersecretary Felix William Fuentebella presented the policy on the establishment of Independent Market Operator (IMO) facility while Assistant Secretary Redentor Delola discussed the Causer Pays Mechanism (CPM), and updates on Wholesale Electricity Spot Market (WESM). Usec.

Fuentebella cited that the IMO is a new and independent body separate from the Philippine Electricity Market Corporation that is tasked to ensure compliance of the generation companies with WESM rules and its market manuals, called the Market Operations Performance Standards. The IMO also ensures transfer of market information and data required by the DOE and Energy Regulation Commission.

The CPM aims to improve efficient utilization of ancillary services specifically by charging current cost recovery to customers across all types of reserves and not only the household consumers. Under CPM, forced outages will have bigger repercussions for the event

causer. Still, the DOE needs further consultation with stakeholders to harmonize relevant issues and achieve efficient implementation of CPM. On WESM, Asec. Delola highlighted that the operation of WESM-Mindanao will commence in October 2018.

WESM facilitates a transparent electricity market across Mindanao energy sources or power plants to trade power supply. It will provide consumers options of choosing lower-priced electricity. The Luzon and Visayas grids have already implemented the program in 2006 and 2010, respectively.

On the other hand, Engr. Nilo

Geroche of DOE-Mindanao Field Office proudly announced that Mindanao has achieved sufficiency in power supply in 2017. However, under the Power Development Plan 2040, Mindanao still needs 10,200 MW of additional energy capacity.

The different national line agencies, private groups led by generation companies, local government units across Mindanao, non-government organizations, and the academe sector participated in the consultation.

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Indigenous Peoples converge for first Regional Summit

by Shiela M. Bermoy, NEDA-Caraga

The Regional Peace and Order Council (RPOC) chaired by Agusan del Norte Governor Maria Angelica Rosedell AmanteMatba in partnership with the National Commission on Indigenous People (NCIP) and the Department of the Interior and

Local Government (DILG) spearheaded the Indigenous Peoples (IPs) Summit on March 25 to 26, 2018 at Oazis Hotel, Butuan City. The IP Summit dubbed “Lumadnong Panaglambigitay Alang sa Kalinaw og Kalambuan sa

Caraga� was a region-wide convergence among Caraga stakeholders aimed at addressing peace and development issues and challenges confronting IPs. Around 1,000 participants attended the Summit. More than 400 of these participants were IP

members and leaders. Among the dignitaries were Chairperson Leonor Oralde-Quintayo of NCIP and Secretary Jesus Dureza of the Office of the Presidential Adviser on Peace Process (OPAPP). Local Chief Executives and heads of the different Regional Line Agencies were also present to respond to issues raised during the Summit.

Several IP issues and concerns were tackled and grouped into ten (10) thematic areas, namely: 1) IPs Education; 2) Local Governance Concerns; 3) Welfare, Skills, and Livelihood;

4) Economic Concerns; 5) Issues on Land and Ancestral Domain; 6) Peace and Security; 7) IP Organization (IPO) Registration; 8) Health Services; 9) Infrastructure; and 10) Autonomy. Actions taken in response to issues raised were also presented.

Questions regarding issuance of Certificate of Ancestral Domain Title (CADT) also emerged. A participant asked as to why there was only one (1) CADT awarded in the province of Surigao del Sur.

NCIP was requested to fast track the release of CADTs. The NCIP clarified that there are already 21 approved CADTs in the region, of which three (3) are already registered with the Land Registration Authority (LRA) and the remaining 18 have yet to be registered. Out of the three (3) registered CADTs, only one (1) CADT (No. R13-LAN-1102-002) was awarded to the province of Surigao del Sur covering a total area of 11,811.6247 hectares and located in portions of Tandag City and the municipalities of Lanuza,

Vol. XXI

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17

San Miguel, and Tago all in Surigao del Sur. NCIP still needs to secure the Certificates of Non-Overlap from DENR and DAR for the 18 unregistered CADTs. Research and segregation are required, thus the NCIP requested OPAPP for budget support in 2019 to fund said activities.

The IPs also raised concerns on the need for a learning center. The Technical Education Skills and Development Authority (TESDA) was requested to consider the establishment of a Learning

Center in Jabonga, Agusan del Norte to cater to IPs or Indigenous Cultural Communities (ICCs) in the adjacent municipalities of Kitcharao and Santiago. The LGU of Jabonga expressed willingness to donate a lot for the TESDA Learning Center while TESDA committed to consider the said request. For the meantime, TESDA will conduct Mobile Trainings in the said areas. The Tribal Groups of said municipalities are requested to provide the list of the trainees.

The Department of Environment and Natural Resources (DENR) was also requested to consider the lifting of Executive Order No. 23 “Declaring a Moratorium on the Cutting and Harvesting of Timber in the Natural and Residual Forests and Creating the AntiIllegal Logging Task Force.” IP communities lamented that said EO has been disadvantageous to legitimate forest agreement holders that adopt and practice sustainable forest management approaches.

The National Economic and Development Authority (NEDA) informed the IPs that the Regional Development Council (RDC) through the Regional Land Use Committee (RLUC) is also looking into the possibility of requesting DENR to lift EO No. 23. This is because the Region’s production forests have long been unproductive as a result of the stringent policy of the government. The number of operating Wood Processing Plants (WPPs) in the region declined from 119 in 2010 to only 27 WPP

in 2017. The RDC has recommended measures to help expedite the processing of WPPs permits and accelerate the growth of the wood industry in the region.

The IPs also requested for a housing program. The National Housing Authority (NHA) was requested to consider an expansion of their housing program for the IPs/ICCs in Jabonga and Buenavista, Agusan del Norte. NEDA commits to inform NHA about the said concern through the RDC-Social

Development Committee (SDC) since it was not represented during the event.

Progress on the actions taken addressing the issues and concerns discussed during the IP Summit was agreed to be regularly updated through the Committee on Indigenous Peoples’ Concerns of the RDC.

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Ease of Doing Business Act of 2018 up for implementation

by Hazel Fuentes, NEDA-Caraga

Pres. Rodrigo Roa Duterte recently signed into law Republic Act No. 11032 or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” on May 28, 2018. The new law is an amendment of Republic Act 9485, known as the “Anti-Red Tape Act of 2007,” which makes the process of starting and operating a business easier, and more efficient.

According to Lawmakers, RA 11032 helps to attract more foreign investments by simplifying requirements and streamlining procedures. The new law aims to enhance business competitiveness, correct the perennial problem of bureaucracy in government institutions, and reduce opportunities for corruption.

The Department of Trade and Industry (DTI) said this law “is one of the interventions of the government to make doing business in the Philippines easier.”

One of the most important features of this law is the standardized deadline for government transactions. Under this law, simple transactions with government should be processed within 3 days, 7 days for more substantial/complex transactions, and 20 days for highly technical transactions. The said law also recognized electronic signatures and limits to a maximum of three required signatories in applications for licenses, clearances, permits, certifications, and authorizations.

Section 11 of the law states that a single or unified business application form shall be used by

various local government departments in processing new application or business permits and business renewals which consolidates all the information of the applicant or requesting party.

The following are some of the salient features of the law: Business One-Stop Shop (BOSS) - To put up a business, one needs only to visit one facility. The law orders local governments to put up a "onestop-shop" or a facility that puts zoning offices, business permit and licensing offices, the Bureau of Fire Protection, and treasury offices in one location. Local governments are also required to set up the one-stop business facilitation services and use online unified business application forms.

Automated, electronic system local governments are also mandated to automate their business permit and licensing systems. They should also put up an electronic business one-stop shop within 3 years of the law's enactment.

Zero-contact policy - A new feature is a provision in the law that states that, save for the "preliminary assessment" of the

business application and submitted requirements, "no government officer or employee shall have any contact, in any manner, unless strictly necessary with any applicant or requesting party concerning an application or request." The provision is designed to eliminate corruption in agencies that process business applications.

Central business portal and Philippine Business Databank - The Department of Information and Communications Technology (DICT) will establish a central business portal that will receive all business applications. A Philippine Business Databank, meanwhile, will serve as a repository of information on all registered businesses in the country that government agencies and LGUs may use as a resource for verification purposes.

The law covers businessrelated transactions (and other transactions specified by the Act) from all government offices and agencies including LGUs, government-owned or controlled corporations and other government instrumentalities, whether located in the Philippines or abroad. This law is in line with the administration’s commitment to increase competitiveness and ease of doing business.

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19

Caraga hosts information caravan for RA 10931: #FreeEducationNa!

by Rolyna Trugillo, CHED-Caraga

The Unified Student Financial Assistance System for Tertiary Education (UniFAST) Team in coordination with the Commission on Higher Education (CHED) – Caraga Region conducted the Nationwide Information Caravan for Republic Act 10931 - “Universal Access to Quality Tertiary Education of 2017” in Caraga Region on April 20, 2018.

The Caraga leg of the nationwide advocacy on #FreeEducationNa was conducted at Balanghai Hotel and Convention Center, Butuan City.

The caravan primarily focused on disseminating important provisions of RA 10931, the implementing rules and regulations to all stakeholders, and answering concerns raised by the stakeholders.

President Rodrigo Roa Duterte signed into law Republic Act No. 10931, otherwise known as the “Universal Access to

Quality Tertiary Education Act” (UAQTEA), on August 3, 2017, which mandated the Unified Student Financial Assistance System for Tertiary Education (UniFAST), a body created under Republic Act No. 10687, to implement all the identified programs in RA No. 10931.

The event was attended by 1,054 participants from public and private schools and Higher Education Institutions (HEIs), and Technical Vocational Institutions (TVIs); national line agencies; local government units; civic and society organizations; representatives of Caraga congressional districts; students and scholars; and parent representatives.

In her welcome remarks, CHED-Caraga Regional Director Dr. Maricar R. Casquejo, emphasized that the public serves as the UniFAST partner. She urged the participants to be

“partners in spreading the good news that there is a government that truly cares in providing free education,” hence, poverty is no longer a reason for not being able to go to school.

The keynote speaker, Atty.

Carmelita Yadao-Sison, UniFAST OIC Executive Director emphasized that the vision of UniFAST is to “create generations of Filipinos with equitable access to Tertiary Education that enhances competencies, enabling them to have better quality of lives and be of greater service to the country.”

Towards this vision, UniFAST governing board shall uphold R.A. 10687 in complementation with other relevant laws, to ensure the highest standard of policy formulation with the widest public consultation.

Atty. Sison discussed the salient points of RA 10931 and the four components of law, see page 23

In brief

Types of Public-Private Partnership (PPP

CONC

PRIVATE

The government envisions to implement infrastructure projects to generate significant employment opportunities and boost economic activities to attain inclusive growth.

by priva revenue risks wit

Design-build-operate/

RELATIVE RISK

output-focused. involve significa projects involving significant refu BOT public sector grantor grants for a certain period (the "Project Duration: 20-30 years

LEASE CONTRACT

Private sector fully responsible for providing services and Ownership remains with public sector Risk profile: revenu sector, some by private sector Duration: 10–30 years app

MANAGEMENT CONTRACT

Facility and/or operational management; Ownership remains with public sector Risk profile: private sector receives fee, linked to performance; limited capital inve Duration: 5–15 years approx.

SERVICE CONTRACT Maintenance of assets and/or equipment; Ownership remains with public sector Risk profile: private sector receives fee for services Duration: 1–5 years approx.

PUBLIC

OWNERSHIP/CAPITAL INVE

PPPs are contractual arrangements entered into by the government with the private sector. Under a PPP scheme, the private sect Ownership of PPP projects remains with the government. Republic Act (RA) 6957 as amended by RA 7718 (known as the Build-O into PPP.

P)

CESSION Investment into new or existing infrastructure by private sector; full system operation

ate sector; Ownership with private sector for duration of contract Risk profile: Budget-based e with government Revenue-based revenue risk with private sector; technical, financial, operational th private sector Duration: 15–50 years

/Build-operate-transfer (DBO/BOT) Projects that are

nt design and construction as well as long term operations, for new build or urbishment and extension s to a private company the right to develop and operate a facility or system Period"), in what would otherwise be a public sector project;

d operational investments; ue risk with private sector; major investments by public prox.

estment by private sector

PRIVATE

ESTMENT

tor can build, operate and maintain public infrastructure facilities and provide services traditionally delivered by government.

Operate-Transfer or BOT Law) and its Implementing Rules and Regulations (IRR) is the legal framework when government enters

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COMPONENT

FREE TUITION 2017

UNIVERSAL ACCESS TO QUALITY TERTIARY EDUCATION ACT (RA 10931) FREE HIGHER EDUCATION

FREE TVET

TES AY 2018-2019 onwards

STUDEN LOAN PROGRAM

DATE OF IMPLEMENTATION

AY June 2017March 2018 and AY August 2017May 2018 only

AY 2018-2019 onwards

July 2018

Short term-AY 2018 to 2019 onwards Long term-AY 2019 to 2020

BENEFITS

FREE TUITION Only

Free Higher Education in SUCs and Local Universities and Colleges (LUCs):  Free tuition for all courses/subjects/ classes;  Free miscellaneous, other school fees

Free training and training-related expenses: living allowance, starter toolkit, cost of accreditation

TES1: Tuition and other fees Loan proceeds for educational for private HEIs purposes TES2: Other educational expenses TES3: Special expenses (e.g cost of obtaining professional credentials, allowance for expenses related to disability)

COVERAGE

Filipino undergraduates, subject to: Admission/ retention policies of institutions; Availability of funds; Prioritization for poor students and those with government STuFAPs P15,000 and below

Filipino undergraduates, subject to admission and retention policies of institutions and future qualification policies mandated by the UniFAST board

Learners enrolled in a TESDA-registered TVET program, subject to admission/ retention policies of the institution and any future qualification policies mandated by the UniFAST Board Learners who are not holding NC3 or higher

Students from the beneficiary households of the government’s 4Ps program Students included in the most recently updated Listahanan Students residing and studying in places with no existing SUC or LUC campus that are included in the Registry Students ranked based to their per capita income based on document (s) of proof of income

PROVIDERS

State Universities and Colleges

SUCs and CHEDrecognized LUCs

TTIs, SUCs, LUCs, SUCs, LUCs, private HEIs LGU-run TVET centers included in the Registry of Quality Assured Programs and Institutions

All tertiary-level Filipino students qualified/enrolled in programs/ institutions in the Registry

UniFAST, together with its implementation partners

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Issue 2

namely: (1) Free Higher Education at State Universities and Colleges (SUCs) and recognized Local Universities and Colleges (LUCs); (2) Free Technical and Vocational Education and Training (TVET) at State TVIs ; (3) Tertiary Education Subsidy; and (4) Student Loan Program. Atty.

Sison announced that free higher education will be available at the existing SUCs in Caraga, and at Hinatuan Southern College (HSC), the only recognized local college in the Region.

Ms. Marife Lou Bacate, Technical Assistant for MacroHRD presented the implementing rules and regulations (IRR) of RA 10931. Ms. Bacate emphasized quality standards that the students and educational and training institutions should adhere to. She explained the mechanism of the Tertiary Education Subsidy in the public or private institution.

Issues and concerns regarding the #FreeEducationNa were all clarified during the open forum by the panel composed of Atty.

Sison; Dr. Maricar Casquejo; TESDA - Caraga Regional Director, Dr. Florencio Sunico, Jr., and Ms. Bacate.

While the cultural presentations at the Malvar Hall were on-going, the Press Conference was also conducted at the Resto Bar of the Balanghai Hotel. Thirteen representatives from the Media group participated in the Press Conference.

During the press conference, the following key points were emphasized: (1) The period of

23

implementation of Free Tuition is AY 2017- 2018 while the Free Tertiary Education under RA 10931 will commence in AY 2018-2019; (2) Benefits include free tuition for all courses or subjects, free miscellaneous, and other school fees as defined by law, free training and training related expenses; and (3) Eligibility qualifications of the beneficiary that includes all Filipino undergraduates who will still undergo the admission and retention policies of institutions and future qualifications mandated by UniFAST board; learners who are non-NCIII holders or higher in case of students enrolled in TESDA-registered TVET programs; students from the beneficiary households of the government’s 4Ps program; students residing and studying in cities and municipalities with no existing SUC or LUC; and all tertiary level students qualified and enrolled in programs of institutions in the Registry.

Effective Academic Year 2018-2019, the government will assume the tuition and other fees of students enrolled in 112 State Universities and Colleges (SUCs), 78 Local Universities and Colleges (LUCs), and State Technical-Vocational Institutions (STVIs) under the Technical Education and Skills Development Authority (TESDA) nationwide.

Dr. Casquejo disclosed that around 37,000 Senior High School graduates are expected to seek admission in the four SUCs

and one local college in the Region. This is the assumption that almost all of these graduates want to avail of free education.

CHED and TESDA, as implementers of RA 10931, commit to play greater role in the development of human capital in Caraga Region, in line with the Philippine Development Plan 2017-2022, towards attaining Ambisyon Natin 2040.

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Philippines’ poverty rate declines; more well-paying jobs and opportunities needed The World Bank, 2018

With solid economic fundamentals, the Philippines is well-placed to speed up poverty reduction. The challenge is to provide more economic opportunities, which would help many more people earn higher and stable incomes.

These are among the key findings of the report titled Making Growth Work for the Poor: A Poverty Assessment for the Philippines released today by the World Bank.

From 2006 to 2015, the latest available data, the report says that robust economic growth helped the poverty rate in the Philippines to fall by 5 percentage points. Poverty declined from 26.6 percent in 2006 to 21.6 percent in 2015, due to factors like the expansion of jobs outside agriculture, government transfers, in particular to qualified poor Filipinos through the Pantawid Pamilyang Pilipino Program, and remittances.

“This experience gives us hope that the Philippines can overcome poverty,” said Mara Warwick, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand. “W ith a strong economy, the country is well-placed to end the vicious cycles of unequal opportunity that trap people in poverty, set in place measures to improve service delivery, and boost job opportunities.”

In 2015, some 22 million Filipinos—more than one-fifth of the population—still live below the

national poverty line.

Constraints to achieving faster poverty reduction, according to the report, include the less pro-poor pattern of growth; high inequality of income and opportunities; and the adverse impacts of natural disasters and conflict.

Most poor Filipinos have low levels of education and live in large households headed by individuals who are self-employed or work in agriculture as laborers or smallholder producers. The poorest households are those dependent on agriculture as their main source of income and most of them live in the countryside, in areas prone to disasters or in the conflict-affected areas of Mindanao.

“Making a difference in Mindanao makes a big difference to the Philippines. Increasing public investment in Mindanao to boost development there would expand opportunities for conflict-affected communities, broaden access to services and create more and better jobs,” said Xubei Luo, Senior Economist at the World Bank’s Poverty and Equity Global Practice.

Inequitable investment in human capital and insufficient well-paying job opportunities trap the poor in poverty across generations, the report explains. High concentrations of wealth constrain equal opportunities and access to services,

which are necessary for inclusive growth. Natural disasters disproportionately and repeatedly batter the poorest regions of the country, miring them in higher levels of poverty.

The government has prepared strategic plans focused on reducing poverty, specifically AmBisyon 2040, a long-term vision to bring down poverty and improve the lives of the poorest segments of the population, and the Philippine Development Plan 2017–2022.

These plans target reducing poverty to 13 to 15 percent by 2022.

To help achieve these targets, the Poverty Assessment recommends the following policy directions: • Create more and better jobs; • Improve productivity in all sectors, especially agriculture; • Equip Filipinos with skills needed for the 21st century economy; • Invest in health and nutrition; • Focus poverty reduction efforts on Mindanao; and • Manage disaster risks and protect the vulnerable.

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25

Issue 2

2017 Regional Economic Situationer Macroeconomic Performance Inflation and Consumer Price Index Caraga Region’s inflation rate exhibited a manageable but fluctuating trend in 2017 at an average of 2.4 percent. This represents a 0.50 percentage point reduction from 1.9 in 2016.

Agusan del Norte registered a steep climb of 161.54 percent to reach an inflation of 2.83 percent in 2017. Agusan del Sur and Surigao del Norte followed with 2.56 percent and 2.79 inflation rate, respectively. However, Surigao del Sur experienced a drop of 0.97 percent.

In 2017, prices of basic commodities and services in the region generally increased with the Consumer Price Index (CPI) averaging at PhP166.50. This is 2.37 percent higher than the CPI in 2016 which registered at PhP162.60.

Among the provinces, Surigao del Sur registered the highest average CPI at PhP187.65 followed by Agusan del Sur (PhP162.13), Agusan del Norte (PhP156.28), and then Surigao del Norte (PhP153.36).

Consequently, the Purchasing Power of Peso (PPP) in the region weakened by 2.30 percent with an average of 0.60 in 2017 compared to 0.62 in 2016. Relative to the high CPI in Surigao del Sur, the province recorded the lowest peso value of 0.53. Surigao del Norte exhibited the highest value at 0.65. With the deteriorating PPP,

Inflation rate decreases

Consumer price index increases

Purchasing power of peso decreases

Source: Philippine Statistics Authority

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Employment rate maintains Key Labor Statistics, Caraga

2016

2017

Percent Change

Difference

Labor Force (in thousands)

1,802

1,853

2.83

51

Labor Force Participation Rate

1,802

1,853

2.83

51

Employment Rate

63.23

62.10

(1.78)

(1.12)

Unemployment Rate

94.85

94.85

0

0.00

5.15

5.15

0

0.00

27.83

23.00

(17.34)

(4.83)

Underemployment Rate

Source: Philippine Statistics Authority

goods and services purchased by Caraganons become more expensive and limited.

Labor and Employment Caraga’s labor force increased by 2.83 percent. From 1.802 million in 2016 it went up to 1.853 million in 2017. However, labor force participation rate (LFPR) experienced a setback as it shrunk by 1.78 percentage points. From 63.23 percent in 2016 it dropped to 62.10 percent in 2017.

Employment rate registered an average of 94.85 percent in 2017. This is the same rate recorded in in 2016. However, underemployment rate declined from 27.83 percent to 23 percent in 2017.

Agriculture, Forestry and Fishery Palay Palay production in 2017 reached 482,675.00 metric tons (MT) posing a growth rate of 4.43 percent from the 462,182.00 MT harvested in 2016. The improvement in production is attributed to the increase in area planted from a total of 150,076 in

2016 to 155,203 hectares in 2017.

The increase in yield is attributed to the increase in the utilization of inbred and good seeds, and irrigated farms.

Agusan del Sur is the biggest producer of palay contributing 51.25 percent to the region’s total production. Surigao del Sur followed with a 19.63 percent share. Agusan del Norte contributed 16.77 percent while Surigao del Norte has10.89 percent share. Output of Dinagat Islands stands at 1.46 percent of the region’s total production.

Corn Total corn production of 119,980 MT in year 2017 is 16.99 percent lower than the production of 144,529 MT in 2016.

The 23.87 percent decrease in area planted with corn from a total of 44,705 in year 2016 to 34,034 hectares in 2017 greatly contributed to the decrease in total production.

The province of Agusan del Sur is the top corn producer of the region, with a 73.77 percent share to total corn production in 2017.

Its production decreased by 19.22 percent.

Similarly, Agusan del Norte

and Surigao del Norte which contributed 16.07 and 0.75 percent share to total output, dropped by 22.45 and 8.95 percent, respectively.

On the other hand, Surigao del Sur’s output increased by 23.42 percent and contributed 19.17 percent to the region’s total output. The province of Dinagat Islands increased by 38.60 percent and contributed 0.25 percent to the total corn output.

Fruits Total fruit production improved by 4.99 percent reaching an aggregate output of 327,009.56 MT in 2017 compared to 311,474.01 MT in 2016. The growth in fruit production was prompted by the improved performance of banana with 5.41 percent growth contributing 89.62 percent of the total output. From a total volume of 278,014.99 MT in 2016 banana went up to 293,055.64 MT in 2017.

Most of the region’s total fruit production is attributed to the output of major fruits (banana, calamansi, mango and pineapple) with 97.79 percent share. Priority fruit group (balimbing, durian, lanzones, mangosteen, papaya,

Vol. XXI

Issue 2

rambutan, tamarind, watermelon, mandarin and orange) followed contributing 2.15 percent in 2017.

Other types of fruits accounted for the remaining 0.06 percent of the total production.

Vegetables Vegetable production improved its performance in 2017. Total output reached 96,558.77 MT from an output of 91,135.89 MT in 2016 posting a 5.95 percent increase. The growth is largely attributed to the improved production of camote, tomato, cabbage, peanut and mongo.

Major vegetables still account for the biggest share with 68.49 percent contribution to the total output. Priority vegetables followed with 29.02 percent share while other types of vegetables contributed 2.49 percent.

Non-Food and Industrial Crops Total output of Non-Food and Industrial Crops (NFIC) reached an aggregate of 972,844.78 MT in 2017. This represents a 0.31 percent increase from the 969,880.28 MT output in 2016.

Major NFIC measly improved by 0.89 percent while priority NFIC and other types of NFIC reduced by 2.41 percent and 0.96 percent, respectively compared to their performance in 2016.

Although coconut increased its production by only 0.79 percent in 2017, it remained as the top contributor with 80.34 percent share to the total NFIC output.

Rubber recorded 10.49 percent increase in 2017 compared to its performance in year 2016 with a 1.46 percent share of the total NFIC output.

27

Livestock and Poultry Livestock production posted a slight decline of 0.96 percent in 2017. From 47,625 MT in 2016 production went down to 47,167 in 2017. The minor decrease is attributed to the decline in production of all commodities such as carabao, catttle, hog, and goat. However, despite decreased hog production, output accounted for 89.44 percent of the total produce.

Agusan del Sur contributed the bulk of production of carabao, hogs, and goat while Agusan del Norte topped the production of cattle.

Poultry production also grew by 4.05 percent; from 19,402 MT in 2016, it went up to 20,187 MT in 2017. The growth is attributed to chicken meat production, which improved by 5.24 percent.

Chicken meat contributed 72.28 percent to total output.

Chicken and duck egg production also increased by 1.60 and 3.36 percent, respectively which contributed 23.95 and 3.05 percent, respectively to the total produce. However, duck meat dropped by 20.65 percent which contributed 23.95 percent to the total production.

Agusan del Norte was the top producer of chicken while Agusan del Sur emerged as main producer for chicken eggs, duck, and duck eggs.

Fishery Total fishery production decreased by 2.26 percent in 2017. From 76,245 MT in 2016 it went down to 74,518 MT in 2017.

The municipal fishery which contributed the bulk of the total

fishery production at 71 percent, declined by 6 percent.

Seaweed continues to be the main driver of the region’s fishery production. It accounts for the biggest share in aquaculture production contributing 65 percent to the total aquaculture output and 13.19 percent to total fishery production. However, the seaweed production continues to decline with 4.73 percent decrease in 2017. Area harvested for seaweed decreased due to unavailability of planting materials and occurrence of iceice disease.

Surigao del Norte continues to be the top producer of both commercial and municipal fisheries. For aquaculture, Surigao del Sur accounted for the bulk of production.

Forestry Log production in 2017 slightly increased by 0.14 percent. From a total of 491,833 cubic meters produced in 2016, it went up to 492,525 cubic meters in 2017.

Though this is a minor increase, still it is a significant change considering a contracting trend for log production in Caraga for the past years. The increase can be attributed to the harvested logs in 2017 from the falcatta planting activity in 2011 under the National Greening Program.

There was an increased in volume of produce from Agusan del Norte, Surigao del Norte, and Surigao del Sur. Agusan del Sur contributed 70-80 percent of the region’s total production.

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Trade and Industry Trade In 2017, Caraga’s total domestic sales reached 705.12 million showing a 6.75 percent decline from 756.20 million posted in 2016. Around 51.21 percent or 361.12 million of the total domestic sales in the region came from Agusan del Norte. Agusan del Sur followed with 29.74 percent share (PhP209.69 million); Surigao del Norte has 8.98 percent share (PhP63.33 million); Surigao del Sur charted a 5.58 percent share (Php39.36 million); while Dinagat Islands covered 4.48 percent share (PhP31.62 million).

In terms of growth, domestic sales in Agusan del Norte improved by 53.73 percent or 126.09 Million more than the sales in 2016. However, total domestic sales of the four provinces dropped with Agusan del Sur having the lowest decline by 14.15 percent.

On registration of new business names (BN), DTICaraga recorded an aggregate of 10,861 in 2017. This represents 35.95 percent growth or 2,872 new business names registered with DTI. The increase of BN Registrants in 2017 was due to the intensified BN monitoring in the LGUs, and improved access to BN registration through the establishment of Negosyo centers around the region.

New business name registration improved in all provinces surpassing their annual targets. Dinagat Islands recorded the highest increase by 177.94%.

Among the provinces, 38.49 percent of the new BN registrants

Agriculture Production Palay production improves Palay production improved by 4.43% Agusan del Norte: -7.28% Agusan del Sur: 11.21% Dinagat Islands: 19.64% Surigao del Norte: 5.95% Surigao del Sur: -2.26%

Corn production drops Corn production dropped by 16.99% Agusan del Norte: -22.45% Agusan del Sur: -19.22% Dinagat Islands: 38.60 Surigao del Norte: -8.95% Surigao del Sur: 23.42%

Source: Philippine Statistics Authority-Caraga

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29

Agriculture Production 2017 2016

2017 2016

2017 2016

271.76

74,518.09

37,028.23

2,555

22,145.73

▲

▼

▲

▼

▼

241.41

76,244.86

33,283.70

2,624

24,719.87

Mongo

Fish

Camote

Carabao

Cassava

1,568

856

5,946.45

▼

▼

▼

1,677

936

5,984.62

Cattle

Goat

Eggplant

14,591

42,188

781,615.38

293,055.64

▲

▼

▲

▲

13,864

42,388

775,472.67

278,014.99

Chicken

Hog

Coconut

Banana

Source: Philippine Statistics Authority-Caraga

Log Production (in Metric Tons) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -

493,000 492,500

492,000 491,500

Agusan Agusan Surigao Surigao del Norte del Sur del Norte del Sur

491,000 2016

2017

Source: Department of Environment and Natural Resources-Caraga

2016

2017

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are from Agusan del Norte.

Agusan del Sur followed with 18.31 percentage contribution.

Surigao del Norte has 17.77 percent share contribution.

Surigao del Sur contributed 14.76 percent to total registrants and Dinagat Islands has a 10.67 percent share.

Total jobs generated by MSMEs dropped by 29.13% in 2017. Employment created by the sector contracted in all provinces at an average of 34% except for Dinagat Islands which slightly improved by 3.21%.

Foreign Export and Import Total exports in 2017 was valued at US$964.276 Million. It grew by 310.04 percent or US$235.167 Million higher than the 2016 figure. This is attributed to the upsurge in the volume of exported products by 484.26 percent; from 4,457.514 million kilos it drastically went up to 26.043 billion kilos.

Total import value of the region dropped by 13.63 percent reaching US$43.502 million in 2017. Imported goods primarily originated from China, Japan, Taiwan, Hong Kong, Korea, Australia, UAE, Singapore, and USA. Manufacturing Manufactured forest products improved by 0.64 percent; from the 224,138 total output in 2016 it went up to a total of 225,571 cubic meters in 2017.

Although the performance of Agusan del Sur and Surigao del Sur contracted by 43.06 percent and 63.47 percent, respectively, the region managed to outdo the

Trade and Industry Domestic sales drops Domestic sales dropped by 6.75%

780 760

Agusan del Norte: 53.73% Agusan del Sur: -14.15% Dinagat Islands: -14.54% Surigao del Norte: -50.37% Surigao del Sur: -64.99%

740 720 700 680 660 Caraga 2016

2017

Business name registration increases Business name registration increased by 35.95% Agusan del Norte: 48.91% Agusan del Sur: 28.32% Dinagat Islands: 177.94% Surigao del Norte: 1.69% Surigao del Sur: 21.72%

12,000 10,000 8,000 6,000 4,000 2,000

Caraga

2016

2017

Source: Department of Trade and Industry-Caraga

Manufactured forest products increases Manufactured forest products increased by 0.64% Agusan del Sur: -43.06% Surigao del Sur: -63.47% Agusan del Norte: 32.65%

226,000 225,500 225,000 224,500 224,000 223,500 223,000 2016

2017

Source: Department of Environment and Natural Resources-Caraga

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previous year’s performance due to the significant increase of outputs in Agusan del Norte, which accounts for almost 80% of Caraga’s total output.

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Services Tourist arrivals increases

Services Financial Services Total bank deposits in the region continuously grew at an average rate of 18% in the last 5 years. As of December 2017, BSP recorded a sum of PhP78.59 billion.

Deposit liabilities in Universal and Commercial Banks (UCB) accounts for more than 90% (PhP71.51 billion) of the total deposits.

A total of 215 BSP supervised/regulated banks are operating in the region with Rural and Cooperative Banks accounting for about 48%, followed by UCB with 30.70% share, and Thrift Banks with 21.40% share.

Among the provinces, Agusan del Norte has the highest number of operating banks (61) followed by Surigao del Sur (57).

Dinagat Islands has the least number of banks (7).

Tourism Tourist arrivals in Caraga Region increased by 18.12 percent from 1,138,855 in 2016 to 1,345,241 in 2017 due to aggressive marketing and promotions by the Local Government Units and the Department of Tourism.

The declaration of Martial Law in May 2018 resulted in the issuance of travel advisories of several foreign countries warning their citizens to avoid nonessential travels to Mindanao.

Source: Department of Tourism-Caraga

Number of flights increases

Source: CAAP Butuan, Surigao, Siargao. Tandag

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Services Volume of air cargoes drops

Foreign import and export drops 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 -

2016 2017 Foreign Import 1,069,551.00 1,160,883.00 Foreign Export 33,749,171.0 32,719,175.6

Source: CAAP Butuan, Surigao, Siargao. Tandag

Number of shipcalls decreases

Registered motor vehicle increases

30,000

140,000

25,000

120,000

20,000

100,000 80,000

15,000

60,000

10,000

40,000

5,000 Domestic Foreign

20,000 2016

2017

28,178.00

26,146.00

783.00

733.00

Source: PPA PMO Nasipit, PPA PMO Surigao

Domestic cargo increases 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 Inbound

Outbound

2016

2017

2,177,153.26

2,433,889.00

903,728.45

684,883.00

Renewal New

2016 98,588 41,156

2017 115,042 69,812

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Issue 2

This consequently led to the drop of foreign arrivals in the region by 1.23 percent.

Local/domestic tourists still comprised 95.14 percent or 1,279,873 of the region’s total tourists arrival.

Financial Services Air Transport Flights in the region in 2017 reached a total of 5,698, which is 48.70 percent higher than the flights in 2016. Both incoming and outgoing flights registered growths of 67.33 percent and 30.06 percent, respectively.

Total incoming passengers reached 96,673 exhibiting an increase of 21.36 percent from the 79,656 total in 2016. On the other hand, overall number of outgoing passengers reached 92,218 representing an increase of 15.61 percent from the figure in 2016.

Total cargoes significantly decreased by 89.25 percent in 2017 with a total of 12,170 kilos compared to the recorded 113,227 kilos in 2016.

Land Transport Motor vehicle registered increased by 32.38 percent; from a total of 139,744 in 2016 it went up to 184,854 in 2017. This is attributed to the increase in the registration of all class or types of motor vehicles. Private vehicles, which comprised 90.10 percent of the total registered vehicles, improved by 14.27 percent.

According to the Department of Transportation (DOTr), new vehicle registrations increased significantly with a total of 69,812 in 2017. This shows an

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uptick of 69.93 percent from the 41,156 new vehicles registered in 2016. Likewise, Renewal presented a rise of 16.69 percent in 2017 with a total of 115,042 from 98,588 in 2016.

Shipping and Cargoes Ship calls decreased by 7.19 percent in 2017 which recorded a total of 26,879 compared to 28,961 in 2016. This is attributed to the decrease in both domestic and foreign shipcalls for the year.

Domestic shipcalls decreased by 7.21 percent which accounted for the biggest share of 97.27 percent to the total shipcalls.

Although there were new vessels operating at the baseport of Surigao City, ensuing an increase in number of shipcalls, the total domestic output still declined due to inclement weather (low pressure and typhoon) experienced in Nasipit baseport resulting in suspension of vessel voyages.

Foreign shipcalls likewise, shrank by 6.39 percent in 2017 which accounts for the remaining 2.73 percent. From a total of 783 of shipcalls in 2016 it went down to 733 in 2017.

Generally, inbound domestic cargo throughput is higher than outbound. Domestic inbound and outbound cargo throughput gained by 1.23 percent; from a total of 3,080,881.71 MT in 2016 it improved to 3,118,772 MT in 2017. Inbound increased by 11.79 percent or 256,735.74 MT. On the other hand, domestic outbound cargo throughput declined by 24.22 percent; from 903,728.45 MT in 2016 to 684,883 MT in 2017.

Total foreign import and export dropped by 2.7 percent in 2017 with an aggregate of 33,880,058.69 MT as compared to the 34,818,722 MT in 2016.

Foreign Import throughput of 1,160,883 MT in 2017 exhibited an increase of 8.54 percent from 1,069,551 MT in 2016 due to high importation of sulfuric acid, Sulphur flakes, slake lime, and coal by Taganito HPAL Nickel Corporation and increase of cement importation at the baseport.

Foreign export throughput however, which contributed 96.57 percent of the total aggregates reached only 32,719,175.69 MT in 2017 posting a negative growth of 3.05 percent due to fewer stocks of nickel ore experienced at Taganito Mining Corporation and low demand of nickel ore in China.

Peace and Security Total Crime Volume in Caraga Region declined by 18.55 percent.

From a total of 10,029 crime incidences in 2016, crimes in the region decreased to 8,169 in 2017. All provinces reflected a drop. Of the total crime volume for 2017, 23.15 percent are index crimes, while 76.85 percent are non-index crimes.

This development was attributed to the responsive adjustments made by the lower units in the implementation of strategic police interventions and crime prevention programs through Managing Police Operations that resulted in significant gains in law enforcement. Furthermore, the PRO 13 intensified its campaign

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against illegal drugs and criminality, which resulted in reduced crime rates region-wide.

As to the disaggregation by LGU, Surigao del Sur PPO registered the highest crime volume with 1,906 incidents followed by Butuan City PO with 1,879 incidents; Surigao del Norte PPO with 1,625 incidents; Agusan del Sur PPO with 1,556 incidents; Agusan del Norte PPO with 953 incidents; and Dinagat Islands PPO registered 250 incidents. More significantly, index crimes for the period dropped by 27.10 percent.

Occurrences of index crimes decreased significantly during the period as compared to 2016 except for homicide and motor vehicle carnapping.

Thirty-one percent of the total index crimes in 2017 are physical injuries, 20 percent on theft, 18 percent on murder, 13 percent on robbery, 11 percent on rape, 4 percent on carnapping; while homicide and castle rustling constitute 3 percent and 0.16 percent of the index crimes respectively.

Crime Solution Efficiency improved during the period by 1.82 percent compared to the previous period. Out of the 8,169 crimes reported, 4,589 were solved thus, registering a Crime Solution Efficiency of 56 percent.

Compared to 2016, Caraga generally presented higher Crime Clearance Efficiency in 2017 registering 66 percent, or an increase of 4.76 percent from the last period. Out of the total Crime Volume recorded in 2017, 5,358 are Cleared Cases.

Peace and Security Index and non-index crimes drops Crime volume drops by 18.55% Butuan City: -19.43% Agusan del Norte: -7.83% Agusan del Sur: -9.53% Dinagat Islands: -49.29% Surigao del Norte: -24.24% Surigao del Sur: -17.31%

Distribution of crime index

Source: Philippine National Police-Caraga

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1st Quarter 2018 Regional Project Monitoring Name of Project Construction of Evacuation Center

Location Pagtignian, Bitoon,Hinatuan, Surigao Del Sur

Repair/ Rehab & Expansion Loreto Loreto, Agusan RHU& Reproductive Health Center del Sur

Fund Utilization (%)

Physical Status (%) as of March 2018 Planned Actual Slippage (%) (%) (%)

100

100

57

0

0.13

80.23

73

-7.23

0.86

76

-10

Status completed

Recommended for termination.

Solibao Br. (B00899MN) along Daang Maharlika (Agusan-Davao Sect)

Rosario, Agusan Del Sur

Bunawan Br. (B00927MN) along Daang Maharlika (Agusan-Davao Sect)

Bunawan Agusan del Sur

0.05

0.84

0.70

-0.14

DoĂąa Carmen Small Irrigation Project

Tagbina, Surigao Del Sur

0.19

0.45

0.45

0

Hawilian Small Irrigation Project

Esperanza, Agusan del Sur

106

Lianga District Hospital Construction Lianga, Surigao of Isolation Building (17NH0095) del Sur

100

100

71

-29

100

100

100

0

28

29.42

+1.53

Tago-La Paz By-Pass Road Quezon, Tandag, (Section 1), Surigao Del Sur 1st LD Surigao del Sur 17N00064

0.67

0.44

-0.22

Proposed Time Extension No.1 of 60 Calendar Days due to unfavorable weather condition (August to January) is on process

Tandag Bridge (B00695MN) along Tandag, Surigao Surigao-Davao Coastal Road Del Sur, 1st 17N00063 District

34

30

-0.04

Revised CPM on process, if approved, planned accomplishment is 29.54% with slippage of (+) 0.11% ; Delayed project implementation

Delayed project implementation

On going /with request for second progress billing inspection.

The project is ongoing but delayed.

57

Delayed project implementation

Construction / Opening of Road, KM Marihatag, 9 Cagwait - San Isidro Road, Surigao Del Sur Surigao del Sur 1st LD 17N00070 Libas Sud Communal Irrigation System

San Miguel, Surigao del sur

Land development of NHA - San Miguel Pag-asa Village

Brgy. Tina, San Miguel, Surigao del Sur

Completed

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Name of Project

Location

Construction/Maintenance of Bridges Along National Roads, Replacement of Permanent Weak Bridge, Mina-ano Bridge Along Daang Maharlika

RTR, Agusan del Norte

Hybrid Long Term Performance Based Maintenance Contract, PBM4, Maharlika Highway Surigao (Lipata) – Boundary Agusan del Norte Section (K1113+500 to K1237+000) Asset Preservation Contract – Preventive Maintenance (APC-PM) Component, JICA L/A No. PH-P247

Provinces of Agusan del Norte and Surigao del Norte

Construction of 2-units 2-storey 6classrooms Lipata National High School Loreto Port Development Project

Brgy. Lipata, Surigao City

Fund Utilization (%)

Physical Status (%) as of March 2018 Planned (%)

Status

Actual Slippage (%) (%)

85.94

55.66

-30.28 The project incurred high negative slippage due to scarcity of pre-cast RC piles in the market.

67.18

67.54

72.49

+4.95

100

100

100

0

25.23

16.53

-8.7

Loreto, Dinagat Islands

ongoing

completed

Construction of Sewage Treatment Loreto, Dinagat Plant Loreto District Hospital Islands

89.84

100

100

0

The project was delayed due to inclement weather condition and delayed delivery/driving of concrete piles. completed

Construction of Libjo Evacuation Center

96.38

100

100

0

completed

Bolod-bolod/Communal Irrigation Albor, Dinagat Project – Construction of Diversion Islands Dam, Canal Structures and Canalization Dinagat (Escolta) Port Development Brgy. Escolta, Dinagat

39.37

100

62.13

-37.87 Subject for termination

24.75

14.87

-9.88

Delayed project due to Right of Way issues involving three (3) houses

Dinagat District Hospital Construction of ISO Building and Completion of Hospital

Brgy. Don Ruben, Dinagat

45.61

100

51

-49

Recommended for termination

Completion of Rural Health Unit in San Jose

San Jose, Province of Dinagat Islands

100

57.51

-42.49

ongoing

100

100

0

completed

89.91

85.02

-4.89

Brgy. Bayanihan, Libjo, Dinagat Islands

Construction of Evacuation Cenber Wilson, San Jose, Dinagat Islands Sta. Cruz – Wilson Farm to Market San Jose, Road Dinagat Islands

100

Project has been suspended

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Issue 2

Hawilian Small Irrigation Project

37

Mina-ano Bridge Along Daang Maharlika

Maharlika Highway Surigao – Boundary Agusan del Norte Section

Tago-La Paz By-Pass Road

Bolod-bolod Communal Irrigation Project

Loreto Port Development

Libjo Evacuation Center

Widening Solibao Bridge

Widening of Bunawan Bridge

Dinagat District Hospital

Sta. Cruz – Wilson Farm to Market Road

Surigao Communal Irrigation System

38

caraga today

Vol. XXI

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Colophon Edition Caraga Today Volume XXI Issue 2 April-June 2018 Publisher Caraga Regional Development Council

Address NEDA-Caraga Building J.A. Rosales Avenue, Butuan City 8600 Telephone 085 342-5774 085 815-0308 Email caraga.neda@gmail.com Online Versions issuu.com/nedacaraga slideshare.net/NEDACaraga13 Editor-in-Chief Melanie A. Maur Managing & Lay-out Editor Hazel Fuentes Writers Sherwin E. Verdun Marx Rev A. Buenavidez Shiela M. Bermoy Paul Edward B. Castillo Gladys C. Giberson Shirley C. Torotoro Gemeniano B. Crisante, Jr. Hazel O. Fuentes Contributors Rolyna Trugillo, CHED-Caraga Philippine Statistics Authority-Caraga Graphics designed by Freepik and distributed by Flaticon, Entrepreneur.com.ph Advisers RD Mylah Faye Aurora B. CariĂąo ARD Roy B. Kantuna

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Project Name

Implementing Agency

Sector

Location

Budget

Status

Mindanao Railway: Tagum-Davao City-Digos (TDD) Segment

DOTr

Railways Tagum, Davao del Norte, Davao City, Digos, Davao del Sur

Night Rating of Dipolog Airport

DOTr

Airports

Zamboanga P253,020,000 del Norte

Project Development

Panguil Bay Bridge

DPWH

Roads and Bridges

Misamis Occidental

Project Implementation 2016/09/01 to 2020/12/31

Mindanao Logistics Infrastructure Network

DPWH

Roads and Bridges

Davao

P80,410,000,000 Project Development

Davao City By-pass Road

DPWH

Roads and Bridges

Davao

P19,810,000,000 Project Implementation 2017/06/09 to 2020/06/30

Zamboanga City DPWH By-Pass Road

Roads and bridges

Zamboanga P2,230,000,000 City

Laguindingan DOTr Airport Operations, Maintenance and Development Project Modernization of DOTr RORO Transport System in the Philippines

Airports

Seaport

P31,544,407,000 Project Development

Project Implementation 2017/02/12 to 2018/05/07

P14,615,400,000 Project Procurement

Nationwide

P5,700,550,000 Project Development