2010 2020 Regional Development Agenda by NEDA Region VI

WESTERN VISAYAS REGIONAL DEVELOPMENT AGENDA 2010-2020

Message

Our country has once again shown its resiliency, posting positive growth â&#x20AC;&#x201C; though modest in the past year despite the global economic crisis and the threat of worldwide AH1N1 pandemic which have affected even the biggest economies in the past year. Millions of jobs and livelihood were lost worldwide, creating uncertainty in our own economy. Our strong macroeconomic fundamentals, however, have proven beneficial in helping the country weather the storm. These recent developments call for urgent responses to take advantage of the global economic rebound and prepare the regions for new challenges. The Regional Development Agenda (RDA) can thus be the roadmap of the regions for development in the next ten years. I commend the NEDA Regional Offices, with the able guidance of the NEDA Regional Development Office-Central Office, for preparing the RDAs. The RDA serves as NEDAâ&#x20AC;&#x2122;s contribution to the next administration as it prepares the development platform for the regions. I hope that the HEARTS concept which I have shared with NEDA and have been advocating to my fellow economic managers, would be able to provide a sound basis for future programs that would encourage social stability and economic advancement of the regions. Let us all work together to attain this common goal towards a stronger economy. Mabuhay tayong lahat!

RALPH G. RECTO Secretary of Socioeconomic Planning 10 August 2009

Message

The Regional Development Agenda of Western Visayas presents to the reader an overview of where the region’s economy is likely to proceed in the next decade, taking in consideration the area’s performance in the recent past and the potentials of its natural resources and present economy. It differs from the Medium-Term Regional Development Plan in that it is from the perspective of the management and technical staff of the NEDA regional office. The regional team could have easily taken the usual path of rooting for agriculture and tourism development which are the two most important sectors of the region. But the push for bio-fuels and renewable energy is borne out of the need for Western Visayas to be self-reliant in its power requirements, be gradually weaned out from its enormous dependence on the Visayas grid and, in the process, contribute towards reducing the country’s reliance on fossil fuel. Moving towards this direction will improve the region’s competitiveness in attracting more investors to set up business in Region VI, instead of elsewhere. The next 10 years bodes well for Western Visayas. Major infrastructure projects are ongoing and in the pipeline, home-grown entrepreneurs are more discerning and have better business sense; and local leaders are more aware of their responsibilities in meeting the basic needs of their constituents, as well as, in creating an environment conducive to investments. The immediate task is to get the attention and interest of our strategic partners from regional agencies, local government units, the academe, the business sector, and other NGOs for them to appreciate the ideas spelled out in the Regional Development Agenda and secure their full support in its realization. The Regional Development Council will play a huge role in providing the venue for discussing action areas and follow-through activities. As the Technical Secretariat of the RDC-VI, the NEDAVI team will do its share in pursuing what needs to be done at the Committee, Council, and even the Advisory level. We call on all our strategic partners and stakeholders to join us in realizing the Regional Development Agenda, which is quite ambitious but certainly attainable, if we are bent in pursuing the best for our economy and the best for our people.

RO-ANN A. BACAL, CESO III Regional Director

Foreword

The preparation of the Regional Development Agenda (RDA) 2010-2020 is among the legacies of Secretary Ralph G. Recto as carried out by the NEDA Regional Development Office. This departs from the usual consultative process adopted in the formulation of the Medium-Term Regional Development Plan (MTRDP), as the RDA is purely a NEDA output. This document aims to provide the succeeding Administration with a starting document to guide the formulation of the Successor Regional Development Plans. Guided by principles of sustainable development, economic integration, decentralization, public-private partnership, interplay of market forces, social equity and justice, and cultural diversity, the RDAs takes off from existing planning documents such as the National Framework for Regional Development, the National Framework for Physical Planning, the Regional Development Plans, and Regional Physical Framework Plans. The RDA articulates the regionâ&#x20AC;&#x2122;s highest priorities based on an intersectoral and interarea analysis of the region and guided by the desired development scenario. The essential ingredients which include the development strategies, challenges and preconditions to achieve the regional development agenda are highlighted. Technical Notes are appended to the RDA, containing the detailed analysis of the planning environment and the issues at hand. Secretary Rectoâ&#x20AC;&#x2122;s HEARTS concept (Health, Education, Agriculture and Environment, Roads/Bridges/Railroads, Trade and Investment/Tourism/Technology, Security) served as inspiration for the identification of regional development themes. Each region was given the flexibility to incorporate the HEARTS in relevant sections of their respective RDA. We encourage all partners in government, the private sector and civil society to use the RDA as their guide for future development policies, programs and projects in the regions.

AUGUSTO B. SANTOS Deputy Director - General Regional Development Office National Economic and Development Authority 10 August 2009 iii

TABLE OF CONTENTS Message of the NEDA Director-General Message of the Regional Director, NEDA-VI Foreword by the Deputy Director-General, NEDA-Regional Development Office Table of Contents List of Tables and Figures Acronyms PART I. REGIONAL DEVELOPMENT AGENDA

Page i ii iii iv vi vii

A. ECONOMIC AGENDA 1. Gearing towards Bio-Fuels and Renewable Energy Development 2. Contributing to the Country’s Food Supply 3. Advancing Other Major Tourism Destinations 4. Producing Globally-Competitive Micro and SME Goods B. OTHER PRIORITY AGENDA 1. Social Development Agenda 2. Environmental Agenda 3. Infrastructure Agenda C. STRENGTHENING INSTITUTIONS THRU PUBLIC-PRIVATE PARTNERSHIPS

2 4 6 7 8 9 10 11

D. CRITICAL ROLE OF PROVINCES AND HIGHLY URBANIZED CITIES E. PREPARING FOR THE DECADE’S CHALLENGES

12 13

PART II. TECHNICAL NOTES A. ANALYSIS OF THE PLANNING ENVIRONMENT 1. Population 2. Physical Resources 3. Economic Activity 4. Social Services 5. Infrastructure 6. Governance and Security B. C.

15 15 19 25 27 31 33

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

34 36 36 37 37 37 37 38 38 39

LIST OF TABLES Table No. 1

Title 16

2 3 4 5 6 7

Population, Density and Growth by Region, Province and Highly Urbanized City: Population Censuses 1995, 2000 and 2007 Production of Major Agricultural Crops, 1998-2009 (in MT) Production of Livestock and Poultry, 2000-2008 Fisheries Production, 1998-2008 (in MT) Private Investment for Region VI, 2001 to 2008 Selected Health Services Indicators, 2004-2008 PhilHealth Membership by Program, 2007-2009

8 9 10 11 12 13 14

Selected Education Indicators, SY 2004-2009 Power Situationer For Negros and Panay Grips, 2000-2008 Number of Barangays Energized, 2000-2009 Irrigation Development, 2000-2009 Existing National Road Length, by Surface Type, 2000-2009 Length of National Bridges by Type, (in Lineal Meters), 2000-2009 Passenger and Cargo Traffic, 2004-2008

27 27 28 28 29 29 30

21 22 23 23 25 26

LIST OF FIGURES Figure No. 1 2 3 4 5 6 7 8 9 10

Title

GRDP Percent Share, by Industrial Origin, Region VI, 1998 and 2008 GRDP, by Region, 2008 Sugarcane Production, 1998-2006 DTI-VI Assisted MSMEs, 2005-2008 Visitor Arrivals and Tourist Receipts, 1998-2008 Registered Vehicles, 2000-2009 Aircraft, Passenger and Cargo Traffic, 2004-2008 Tax Collection Growth Rate, 2001-2009 Distribution of LGUs Income Source, CY 2004 â&#x20AC;&#x201C; CY 2008 Distribution of LGU Expenditure for CY 2004-2008 vi

20 20 22 24 24 29 30 31 32 32

ACRONYMS ARMM BPO CALABARZON CAPELCO CAR CENECO CHED CMTS CPU-ANEC CSR DA DepEd DOST DPWH DTI FS GDP GRDP HDMF HUDCC JICA LEC LGU LPG MCM MDG MIMAROPA MSME MT NCR NEDA NGO NHA PNOC PNP PUJ RDC SMEDSEP TESDA USA

Autonomous Region for Muslim Mindanao Business Process Outsourcing Cavite, Laguna, Batangas, Rizal and Quezon Capiz Electric Company Cordillera Autonomous Region Central Negros Electric Company Commission on Higher Education Cellular Mobile Telephone Service Central Philippine University-Affiliated Non-Conventional Energy Center Cohort Survival Rate Department of Agriculture Department of Education Department of Science and Technology Department of Public Works and Highways Department of Trade and Industry Feasibility Study Gross Domestic Product Gross Regional Domestic Product Home Development Mutual Fund Housing and Urban Development Coordinating Council Japan International Cooperation Agency Local Exchange Carrier Local Government Unit Liquefied Petroleum Gas Microgram per Cubic Meter Millennium Development Goal Mindoro-Marinduque-Romblon-Palawan Micro Small and Medium Enterprise Metric Ton National Capital Region National Economic and Development Authority Non-Government Organization National Housing Authority Philippine National Oil Company Philippine National Police Public Utility Jeepney Regional Development Council Small and Medium Enterprise Development for Sustainable Employment Program Technical Educational Skills and Development Authority United States of America

vii

Regional Development Agenda CY 2010-2020

Western Visayas

The Country’s Front-Runner in Bio-Fuels and Renewable Energy Mix 2010-2020 Western Visayas or Region VI is strategically located at the very heart of the nation, providing the critical link through the Western Philippines Nautical Highway that allows easy access to and from established markets of Metro Manila and Luzon, the thriving cities of the Visayas, and the promising markets of Mindanao. With fertile plains, rich inland and marine resources, plus scenic natural attractions throughout the region, Western Visayas is known as the country’s major food provider and leading tourist destination. The regional economy in the next 10 years will be anchored on a modernized Western Visayas: Vital Link of the Nautical Highway and more diverse agriculture and fisheries sector, a dynamic tourism industry, and a vibrant array of micro- and home-based enterprises with globally competitive products. In recent years, the country’s vulnerability to fluctuations in fuel prices challenged the region to look for alternative sources of fuel and power. With a more aggressive push at the regional and local levels culminating with the Renewable Energy Summit in 2008, private sector investors expressed their firm commitment to venture into renewable and eco-friendly power-generating projects. Already, the Department of Energy has declared Western Visayas as the country’s laboratory for renewable energy, pointing to up-coming projects that will draw power from wind, solar, bio-mass, recycled water, sea currents, and hybrid power configurations. The vast sugarcane plantations in Panay and Negros Occidental and the steadily increasing areas planted with jatropha provides enormous opportunities for biofuel production. “Biofuel” basically refers to organically-derived materials where solid, liquid or gaseous materials can be produced for either bio-ethanol or bio-diesel. Bio-ethanol and bio-diesel can be used in their pure forms but are currently blended with gasoline and petroleum diesel, respectively. Current ratios are 1% for diesel and 5 to 20% for gasoline. However, car manufacturers have begun developing vehicles that can run solely on biofuels. This year, the country’s first bio-ethanol plant with a 40 million liter annual capacity was inaugurated in San Carlos City (Negros Occidental) and is expected to provide 10% of the country’s ethanol requirements. This P3 billion facility marks a critical technological advancement for the sugar industry in the region. It aims to support the local agricultural community, generate employment in the countryside, decrease dependence on foreign-supplied fuels, and contribute to national renewable energy goals to sustain the country’s environment. 1

Regional Development Agenda CY 2010-2020

Thus, Region VI will be the front-runner in bio-fuels and renewable energy mix which will result in significant reductions in oil importation and fuel costs for the country. Western Visayas’ governors already committed to lead the region toward a 100% renewable energy target.

A. ECONOMIC AGENDA 1.

Gearing towards Bio-Fuels and Renewable Energy Development

The region is poised to provide full support for investors on bio-fuel and renewable energy projects. Joint ventures with existing sugar mills are already inked and will continually be promoted to reduce costs and take advantage of the proximity of raw materials and facilities. Research on the most suitable crops to be planted will be intensified by the DA and DOST, as well as, research arms of higher education institutions to guide farmers and contract growers. Extension support will be in the form of trainings, provision of planting materials, tissue culture laboratories, and market information on prices to ensure profitable returns for planters. Farm areas currently planted with rice and corn will not be compromised in order to protect the supply of these staples for human consumption and, in the case of corn, to sustain feeds production for the region’s growing livestock and poultry industries. A network for collecting agriculture wastes like rice and corn stalks, rice husks, wood chips, bagasse, coconut husks, among many others, will be set up starting at the barangay leading to a central consolidator. Existing rural cooperatives will be strengthened and utilized in this endeavor to provide additional income to their members. Among the on-going and completed power generating projects in the region are the Hydro Power Sunwest Water & Electric Company, Inc. (SUWECO) National Irrigation Administration (NIA) Conal Holdings / Alto Power Mngt Corp.

8MW Villasiga Hydro Bugasong, Antique 2.1MW Guiamon-San Ramon Hydro Laua-an, Antique

on-going on-going

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

Calinog & Lambunao, 2nd level scoping Iloilo finished

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

DS Benedicto, Neg. Occ.

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

Regional Development Agenda CY 2010-2020

CPU-ANEC/JICA 15kW Igpatuyao Micro Hydro

Sebaste, Antique

on-going

Preferred Energy, Inc Japan Fund for Poverty Reduction

40kW Canauilan-Barasalon Micro

Janiuay, Iloilo

completed

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

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

completed completed completed

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

San Lorenzo, Guimaras

on-going

Central Azucarera 15MW Passi Co-Gen Power Plant de San Antonio

Passi, Iloilo

operational

Green Power Panay Phils, Inc.

15MW Cabalabaguan Biomass

Mina, Iloilo

on-going site prep

Asea One Power Corp.

12 MW Agbanawan Biomass Plant 18 MW Biomass Power Plant

Banga, Aklan Iloilo, Antique, Guimaras

on-going

First Farmers Holding Corp.

21MW FFHC Co-Gen Power Plant

Talisay City, Neg. Occ.

commissioned; 5MWPower supply agreement inked between CENECO & FFHC from 20082010 to be approved by ERC. Power is meanwhile exported to Cebu.

Bronzeoak

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

San Carlos City, Neg. Occ.

Roxol Bioenergy Corp.

Bioethanol Plant with 100,000 liters- La Carlota City, daily production capacity Neg. Occ.

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

Bioethanol

on-going site acquisition

operational; inaugurated last Sept 4, 2009 on-going (P1.5B investment)

Regional Development Agenda CY 2010-2020

Biofuels International Philippines, Inc.

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

Murcia, Negros Occidental

Site acquisition

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

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

recommissioned last May 2009 on-going civil works

Geothermal Energy Dev’t. Corp.

following: A techno-economic study of the Ethanol Alliance disclosed in 2007 shows that Negros Island has the potential to host seven to nine biofuel production facilities and each can produce an average of 100,000 liters to 150,000 liters of ethanol a day. Meanwhile, the Northern Negros Bio Fuel Corp. signed a memorandum of agreement with the Philippine National Oil Corporation (PNOC) Alternative Fuel Corp. for the planting of jatropha curcas on about 5,000 hectares in Cadiz City in one to three years. Solar projects in far-flung areas will be used to power schools, health centers and even residences. In major urban centers, Local Government Units will advance the use of E-jeepneys with solar panels to replace fuel-dependent PUJs. The distribution of power will be facilitated with the completion of the Northern and Southern Panay Backbone Transmission Projects by 2010 and 2011, respectively. These will essentially serve as the electricity highway for the provinces of Aklan, Antique, Capiz and Iloilo. The underwater cables interconnecting Panay, Guimaras and Negros will be uprated to allow for high capacity power sharing within Region VI and among the Visayas regions. The establishment of reliable and cheaper sources of energy will pave the way for modernizing the agriculture and fisheries sectors, attracting more investors for big-ticket manufacturing ventures and, ultimately, improving the quality of life of the region’s households.

2. Contributing to the Country’s Food Supply Western Visayas will remain as the country’s major producer of rice, marine products and sugar. Efforts are now being made to further diversify its farm products to take advantage of its large tracts of land suitable for growing various crops. In the coming years, increased production of corn, high-value vegetables, fruits, improved coconut varieties, and rootcrops will be targeted through an effective extension program delivered by regional agencies, state universities and colleges, and local government units. Focus will be on the provision of better seed varieties, modern farm equipment, technical trainings on efficient and sustainable farm practices, utilization of farm wastes for added income, and production of organic fertilizers and pesticides. Technical support will be provided for livestock and poultry growers, especially in the improvement of breeds, and in the installation of a system 4

Regional Development Agenda CY 2010-2020

of security and protection of stocks from harmful diseases. Major irrigation projects in the following priority areas will be implemented to increase the effective crop harvest areas and production: • Aklan-Panukuyan River Irrigation System (Aklan, P56.2M) • Dalanas River Irrigation Project (Antique, P188M) • Jalaur Proper and Sibalom-Tigbauan River Irrigation Systems (Antique, P19.5M) • Cabano Reservoir Irrigation Project (Guimaras, P585) • Jalaur Multi-Purpose Project Stage II (Iloilo, P10.8B) • Asue River Basin Agriculture Development Project (Iloilo, P9B) • Malogo Irrigation Project (Negros Occidental, P650M) • Binalbagan River Irrigation Project (Negros Occidental, P270M) Custom-built drying facilities will be designed to ensure higher buying prices for palay. While private investors will be enticed to set up rice mills, warehouses, and other post-harvest facilities, farmers’ cooperatives will be strengthened through capability-building trainings on entrepreneurship, marketing, financial management, etc. to empower them to stand up on their own, decide on their future plans, and increase their capacities to solve problems and issues besetting their organizations and members. Among other regions in the country, Western Visayas ranks 2nd in municipal fisheries production, 3rd in commercial/marine fisheries, and 5th in aquaculture. As such, the sector will further be boosted with support along modern production and harvesting techniques, marketing, proper packaging, branding, and preservation procedures. A more efficient information and feedback mechanism on fish and aquaculture products-in-demand and their prices will be put in place. Because of the very perishable nature of fish and fishery products, blast-freezing facilities will be established to ensure that products reach the markets in good condition. Good post-harvest practices will be emphasized in trainings, particularly among exporters, to meet international standards and stringent requirements of importing countries. Brackish and freshwater aquaculture will be promoted to develop marginal marshlands in support of the increasing demand for milkfish, tilapia, catfish, seaweeds, abalone, mussels, crabs, shrimps, and oysters. A rehabilitation plan will be formulated to take action on degraded marine ecosystems due to illegal fishing activities; downstream siltation as a result of forest degradation; and water pollution caused by agriculture and domestic wastes. Farm, fishpond, and grazing areas will undergo a facelift to include eco-friendly and appropriate landscaping, drainage, improvement in facilities, operational systems, among others, to transform these into agri-tourism areas, consistent with the overall tourism development of Western Visayas, 5

Regional Development Agenda CY 2010-2020

as well as, to provide prospects for other businesses in these areas.

3. Advancing Other Major Tourism Destinations

From its idyllic beaches to its rugged mountains, Region VI offers a wealth of adventure options and a variety of experiences. Its world-famous, distinct, colorful festivals throughout the year have been catalyzing the growth of micro-enterprises catering to a variety of interesting souvenir items and sought-after services. Travel itineraries to natural, man-made, historical, religious, economic, cultural, and culinary attractions are already being arranged to accommodate emerging preferences of local and foreign visitors. Tourism circuits will be promoted among LGU alliances to market interregional tourism through the integration of itineraries and packages. A stronger regional tourism network will be established, composed of local tourism boards and representatives of private tourismrelated establishments and organizations in the areas that will link with international tourism organizations. Tourism development will be based on sound management of resources and will be sensitive to local customs and traditions. Development standards will be included in local zoning ordinances and other land regulatory measures to maintain the environmental integrity within and around the site during and, especially, after the construction of tourism facilities. Greater emphasis will be placed on upgrading the skills and specialized services in tourismrelated establishments to raise the quality of manpower in hotels, restaurants, entertainment, spa, and other outfits to world-class standards. The role of LGUs will be crucial in ensuring a tourist-friendly environment in their areas of jurisdiction. Tourism information centers will be established in strategic entry points to guide travelers to their destinations and to assist them in their needs. Appropriate signs will be installed to provide directions, while drivers of public utility vehicles will be trained to welcome and guide visitors. Cleanliness and orderliness will prevail especially in cities and poblacions. Urban planners and architects will be tapped to help LGUs improve their landscape and focus will be given to sustainable and eco-friendly design concepts. Tourism is expected to translate to opportunities for jobs, livelihood, and allied services, just as it has catalyzed the growth within and around Boracay Island (Malay, Aklan), the Mt. Kanlaon National Park (Negros Occidental), Bugang River (Pandan, Antique), Mambukal Hot Springs (Murcia, Negros Occidental), the diving and sightseeing spots in Southern and Northern Negros Occidental, Bulabog Putian National Park (Dingle, Iloilo), and Guimaras Island, among others. 6

Regional Development Agenda CY 2010-2020

In the coming years, more visitors are expected to include the islands in Northern Iloilo, Madia-as National Park (Antique), Pangilatan Falls (Capiz), Jawili Eco-Tourism Park (Tangalan, Aklan), and the highlands of Don Salvador Benedicto (Negros Occidental), among others, in their itineraries, to also experience the beauty and splendor of nature in these areas. The Western Visayas Historical and Cultural Council will be tapped to oversee the strengthening of counterpart local bodies to secure, protect and promote heritage sites and attractions. Technical workshops will be conducted for the academe, building contractors, museum curators, architects, planners, etc. to provide them the skills and know-how in preserving valuable artifacts, antiques, and early structures. The region will ensure that relics will be kept intact to always remind us of our past and our history.

4. Producing Globally-Competitive Micro and SME Goods The region takes pride of the over two thousand home-based, micro-enterprises that have made a name for themselves because of the consistent quality of their products. These are broadly classified into processed food, fabrics, jewelry, metal/bamboo/wood/shell crafts, furniture, and other gift items. Government support for these enterprises will include expediting laboratory tests, technological researches, promotion and marketing, packaging, proper labeling, and further improvement in value-adding, especially for raw materials that are accessed within the region. Designs for crafts, jewelry, furniture, and gift items will be demand-driven drawing from local and international trade fairs. Competitions for innovative and promising products will be conducted in tandem with the year-round festivals in the regionâ&#x20AC;&#x2122;s provinces/cities to continually motivate producers to come up with better quality and highly saleable items. The fabrics of Western Visayas are distinct and classic. The world-renowned jusi, piĂąa, abaca, sinamay, silk, and even banana fabrics are used solely, or blended with one another, to create the best combination for durability, texture, and pattern. Almost all products from these fabrics are handmade and command excellent prices for their detail and design from skilled workers. Hablon is a woven cloth unique to Panay and is also sought after for patadyong, blankets, handkerchiefs, table runners, and scarves. The region will provide incentives to ensure the continuity of these traditional skills and talents as part of the regionâ&#x20AC;&#x2122;s heritage. Yearly fashion events will be held among prominent designers to provide the venue to parade their creations and increase their national exposure. Display centers will be established in cities and capital towns, where there are none, to provide a one-stop souvenir shop for visitors and local buyers. Annual features of specific commodities, e.g. mango, pineapple, sugarcane, coconut, banana, cashew will be encouraged to draw ideas on value-adding and to continually improve on existing products. 7

Regional Development Agenda CY 2010-2020

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

OTHER PRIORITY AGENDA

Social Development Agenda

Poverty remains to be a major concern of the region. The growth of the region’s economy is expected to translate into more jobs, more livelihood opportunities, and prospects for more investments. However, government will have to consciously and pro-actively ensure that the benefits of development will be experienced and enjoyed by all. Western Visayas will pursue its priority social agenda that will include interventions to resolve some of the region’s prevailing concerns along health, education, housing and welfare. These include the following: • provision of potable water in remaining unserved barangays • expansion of feeding program/communal gardens for HHs with malnourished children • decongestion of tertiary hospitals thru the upgrading of provincial/district hospitals and improvement of rural health units • acquisition of health equipment for provincial/district hospitals and rural health units • retraining of health and medical personnel and rural health workers and volunteers • reduction of classroom, desks, and textbook backlogs especially in rural areas • implementation of dual training systems, multi-skills development, community-based training program and skills training conducted in TESDA-supervised schools • retraining of teachers specially along effective methods of teaching and computer skills • grant of housing assistance to informal settlers and families affected by infra projects • livelihood assistance to poor individuals graduating from entrepreneurship programs • special programs for indigenous people, persons with disabilities, victims of abuse, the youth and the elderly • continuous advocacy on responsible parenting • empowerment of peoples organizations. In order to reach out to as many target families as possible, the following strategies will be adopted by local government units concerned: 1) partnering with NGOs whose programs align with the priority agenda of the region; 2) enlisting major businesses and companies as part of their corporate social responsibility; and 3) tapping civic organizations, professional groups, fellowship clubs to pursue barangay and community-level outreach projects. Local government units will continue to play the lead role in providing basic social services to their constituents. Regional line agencies, government corporations, state universities and 8

Regional Development Agenda CY 2010-2020

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

2. Environmental Agenda Western Visayas has a high biodiversity level with its natural parks, marine and forest reserves, and wildlife sanctuary serving as habitats of rare flora and fauna. These include Mt. Kanlaon Natural Park in Negros Occidental, the Sibalom Natural Park in Antique, and the Northwest Panay Peninsula encompassing Antique and Aklan. The latter is the only remaining low-elevation forestland in the region with an intact old growth forest. The Samponong Bolo Bird Sanctuary in Sara, Iloilo is where the migratory Purple Heron and Rufuos Night Heron nest and provide an incredible spectacle for nature lovers. The region will exert its efforts in preserving these environmentally critical areas, including its watersheds, mangrove areas, coastal resources and river basins. Already, a number of LGUs have banded into alliances to ensure a comprehensive approach in safeguarding, regulating, and sustaining these areas. Among the priority watershed basins of Region VI are the following: • • • • • • • • • • •

Aklan Watershed Basin Mau-it Tipuluan Watershed Basin (Antique) Dalanas Watershed Basin (Antique) Panay Watershed Basin (Capiz) Maasin Watershed Basin (Iloilo) Jalaur Watershed Basin (Iloilo) Sibunag Watershed Basin Bago Watershed Basin (Negros Occidental) Himogaan Watershed Basin (Negros Occidental) Ilog Hilabangan and Kabankalan Watershed Basin (Negros Occidental) Sipalay Watershed Basin (Negros Occidental)

Disaster risk areas will be identified and closely monitored to avoid unnecessary loss of lives and property. Mitigation measures will be introduced especially in landslide- and floodprone sections with the support of local government units. Because of increasing incidence of flooding especially in the region’s settlement areas, the following priority flood control projects will be pushed for immediate funding and implementation: Iloilo Flood Control & Environmental Infrastructure Project, Stage 2; Panay River Basin Flood Control Project; Bacolod Flood Control Project; and Ilog Hilabangan Flood Control Project. In compliance with the Solid Waste Management Act, sanitary landfills and material recovery facilities will be installed in major cities and municipalities. Proper disposal of garbage will be emphasized, starting at the household level and supervised by Punong Barangays. Schools, churches, and civic organizations will be tapped to disseminate information and assure compliance. 9

Regional Development Agenda CY 2010-2020

3. Infrastructure Agenda Located in the central part of the Philippines, Western Visayas serves as a vital connection and jump-off point to other regions in the country. The existing nautical highway allows bus and cargo trucks carrying goods and passengers from Luzon via Roxas, Mindoro in Region IV-B to pass through the Caticlan Jetty Port in Aklan to gain access to Panay and Negros islands, reaching Dipolog City in Mindanao via Dumaguete City in Negros Oriental. Over 80 public and private ports are scattered throughout the region making Western Visayas one of the more accessible regions by sea. The Iloilo Commercial Port Complex is one of the 10 identified international ports of the country and is the principal port of entry of the region. The Bacolod Reclamation Development Company, on the other hand, already accommodates international vessels. The modernization and improvement of logistics support in these ports and the upgrading of equipment and facilities will support the regionâ&#x20AC;&#x2122;s domestic and international trade that is expected to impact on its agriculture, industry and commerce. The newly completed Iloilo Airport in Cabatuan, Iloilo, the Bacolod-Silay Airport in Silay City, and the expanded Kalibo Airport in Aklan already meet international aviation standards. More domestic routes and frequent flights have been established to cater to the demands of domestic passengers. Negotiations with the Civil Aeronautics Authority of the Philippines and international airlines are on-going to establish international flights to and from neighbors such as China, Japan, and Korea to directly bring in foreign tourists eager to experience the distinct heritage, culture and natural attractions of the region. Accessing world-famous Boracay will be easier with the improvement and expansion of the Caticlan Airport, to be implemented via a build-operate-transfer scheme. Plans for a green and eco-friendly design with facilities that will ensure ease and comfort for travelers have already been finalized. Meantime, going around the islands of Panay, Guimaras, and Negros by road will be very convenient with the concreting of all national highways, especially roads leading to tourist destinations. The presence of a complete maintenance depot of a major bus liner in Negros Occidental assures passengers of safe and modern buses plying within and outside Region VI. The growing traffic in the regionâ&#x20AC;&#x2122;s highly urbanized cities of Iloilo and Bacolod, as well as, the growing and congested cities of Roxas, Kalibo, and Silay needs to be attended to in the coming years. To systematize the entry of public utility vehicles in cities, jeep and bus terminals will be upgraded and modernized, starting with the improvement of their physical operations layout, setting-up of clean and sanitary restrooms and, more importantly, the training of terminal operators and personnel for a more client-friendly service. Public-private partnership schemes will be explored to ensure efficiency and profitability of the terminals. 10

Regional Development Agenda CY 2010-2020

C. STRENGTHENING INSTITUTIONS THRU PUBLIC-PRIVATE PARTNERSHIPS The private sector will spearhead the growth and progress of the region while government will provide the necessary support, streamline regulatory systems, and initiate appropriate policies that will attract more investments into Western Visayas rather than elsewhere. The Regional Development Council will play a crucial role in harnessing the support of agencies and local government units, in partnership with the private sector, to actively pursue the region’s development agenda by laying the groundwork in achieving its economic and social goals. Public-private partnership schemes will be advanced so that the corporate sector, civic and professional groups and other non-government organizations will engage in projects, including those traditionally implemented by government. Mobilizing private sector resources will free local government funds that can then be used for poverty-alleviating measures designed to benefit the disadvantaged, the deprived and the underserved. While the RDC will take the lead in securing funding support for big-ticket programs and projects that cut across two or more provinces, it will continue to assist LGUs, regional agencies, SUCs and government owned and controlled corporations in accessing funds to support their own priorities. A list of projects to be undertaken jointly with the private sector will be prepared. Local Development Councils will select partners who possess the expertise, experience and track record in projects to be pursued. Priority projects to be promoted for public-private partnerships include: • reforestation projects • post-harvest facilities • solid waste management • tourism projects • school buildings • day care centers • public markets • communal water facilities

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

The Regional Development Council will conduct market and investment forums with business groups to follow-up on commitments set in last year’s Renewable Energy Summit. As an incentive, bilateral partners (China, Japan, Korea, Australia, New Zealand, Spain) will be invited to explore the possibility of supporting upcoming and committed projects. The Provincial/City/Municipal Project Monitoring Committees will continually be strengthened and supervised by the Regional Project Monitoring Committee thru trainings, exposure trips, and attendance to regular quarterly meetings to see to it that problems being encountered in major on-going programs/projects will immediately be attended to. Private sector representatives who are members of the monitoring committees are expected to undertake their own validation of the monitoring reports and submit their project exception reports, if necessary.

Regional Development Agenda CY 2010-2020

D. CRITICAL ROLE OF PROVINCES AND HIGHLY URBANIZED CITIES The provinces will lead local government units in realizing the development agenda adopted by the region. They are expected to enjoin the cities and municipalities under their jurisdiction to prepare their areas and streamline their operations to be ready for investors and tourists. Iloilo City, the regional capital, and Bacolod City, the secondary growth center of Western Visayas, will be the hub of commercial, financial and trade transactions where businesses will impact on outlaying suburbs through forward and backward linkages. Aklan will take advantage of the attraction of Boracay to lure visitors to other destination areas in the province. Kalibo Airport serves direct flights to and from Incheon and Taipei, South Korea through international flights of Asian Spirit, Mandarin Airlines and Pacific Pearl Airways. More air links will soon be offered with direct flights to and from Singapore, Hong Kong, Shanghai and Beijing establishing and cementing Kalibo’s reputation as the international gateway to the Western Visayas region. Antique got its tagline “where the mountains meet the sea” because of the relatively short distance between its mountains and its coastal areas which lies parallel to it. The Antiqueños are noted for their industry and renowned weavers. Household enterprises will continue to flourish providing income to its residents. Investment opportunities with bright prospects in the province include: muscovado sugar industry, seaweed processing, marble processing, gemstone and semiprecious stone processing, fiber extraction/processing/weaving. Capiz, the seafood capital of the Philippines, boasts of its 80-kilometer coastline and wide expanse of swampy lands that can easily be converted into fishponds. Its rich fishing grounds and aquamarine industry provides harvests that include prawns, milkfish, blue marlin, squid, oysters, shrimps, seaweeds, and angel wings supplying high-end hotels and restaurants of the country. Guimaras is an exotic island known for the famous and the best export-quality mangoes . It has a thriving agri- and marine-based economy producing kalamansi and cashew nuts, fresh fish, shellfish, and lobsters and home-based handicraft enterprises, aside from its lime industry, mining industry, fruit processing industry, and coconut industry . Iloilo’s rich heritage is showcased in multifarious festivals celebrated in the city and various towns of the province. Dubbed as the “Province of Festivals,” Iloilo is proud of its internationally acclaimed Dinagyang Festival, together with smaller but similarly riveting festivities of its municipalities throughout the year. Iloilo takes pride in being the food basket and rice granary of the region owing to its fertile flat lands and seas that yield plentiful harvests. Negros Occidental is known as the “sugar bowl of the Philippines” producing more than half of the country’s requirements from its 15 centrals. It remains to be one of the most progressive and largely developed Philippine provinces, in large, due to the profits from the sugar industry but also due to diversification to other fields. Negros Occidental will spearhead Western Visayas’ bid as the country’s front runner in biofuels and biodiesel production.

Regional Development Agenda CY 2010-2020

E. PREPARING FOR THE DECADEâ&#x20AC;&#x2122;S CHALLENGES The realization of the regional development agenda in the next decade will be coordinated and monitored by the Regional Development Council. As its secretariat, the NEDA regional office will continue enhancing the capabilities of local government officials and staffs along planning, investment programming, resource mobilizing, and monitoring to institutionalize these processes at the local levels. The Provincial Development and Physical Framework Plans will capture the regionâ&#x20AC;&#x2122;s development directions in its own local strategies, as well as, in the identification of priority programs and projects to ensure the realization of end goals. A conscious effort on the part of government will be placed in mobilizing private sector participation in all its endeavors to bring about synergy and cooperation among all partner stakeholders. Detailed timetables and activities will be discussed in special meetings among relevant partners to bring to fruition the foregoing agenda.

Regional Development Agenda CY 2010-2020

TECHNICAL NOTES A. ANALYSIS OF THE PLANNING ENVIRONMENT 1. Population Western Visayas is the fourth most populated region in the country estimated at 6,843,643 as of 2007 or 7.7% of the Philippines’ 88,574,614. It follows CALABARZON, NCR, and Central Luzon, in that order. The annual population growth rate of the region is 1.35% (2000-2007), which is way below the country’s annual growth rate of 2.04 percent. Compared with the other regions, it ranked 5th from the bottom, with Ilocos Region recording the lowest growth rate of 1.10 %. The growth rate is lower than the 1.56 % registered between censal years 1995 to 2000 but relatively higher than the 1.30 % between censal years 1990 to 1995. The region’s population growth rate has been consistently below that of the country. If the current growth rate continous, the region is expected to double its population in 51 years or in 2060. In 2020, the region will have an additional population of 1,303,327. The region’s total land area is 20,794.2 km2, the 7th largest in the country, constituting 6% of the country’s total. ARMM has the largest land area with 33,511.4 km2 while the NCR has the smallest, with 619.5 km2 which is actually a bit larger than the Province of Guimaras. The NCR is the most densely population region with 18,648 persons/km2 followed by CALABARZON with 696 persons/km2. Western Visayas ranked 6th from the top with 329 persons/km2. The least densely populated regions with populations below 100 persons/km2 are CAR and MIMAROPA with 78 and 86 persons/km2, respectively. Among the provinces of the region, Negros Occidental is the most populated (2,370,269) and has the largest land area with 7,809.2 km2, while Guimaras is the least populated (151,238) has a land area of 604.6 km2.

2. Physical Resources Topography and Slope The islands comprising the region exhibit similar physical features characterized by relatively wide stretches of rivers and coastal lowlands that spread inland and series of rugged hills and mountains in the interior areas. The region is surrounded by bays and coves that serve as good harbor and fishing grounds. The slope characteristic of the region is a mix of level to nearly-level and rolling to moderate steep slopes. About 50% of the region’s 2,022,311 hectares are of the relatively developable range of 0-18% slope and about 20% are within rolling to moderately steep slopes. The remaining 30% are in the steep and protection-oriented slope range of 30 % and above.

Regional Development Agenda CY 2010-2020

Table 1. Population, Density and Growth Rates by Province and Highly Urbanized City: Population Censuses 1995, 2000 and 2007 Provinces/ Cities Provinces Negros Occidental Iloilo Capiz Antique Aklan Guimaras Highly Urbanized Cities Iloilo City Bacolod City REGION VI PHILIPPINES

2007 (Aug 1) 2,370,269 1,691,878 701,664 515,265 495,122 151,238 418,710 499,497 6,843,643 88,574,614

2000 (May 1) 2,136,647 1,559,182 654,156 472,822 451,314 141,450 366,391 429,076 6,211,038 76,506,928

APGR (2000-2007) 1.44 1.13 0.97 1.19 1.29 0.93 1.86 2.12 1.35 2.04

Land Area (Km2) 7,809.2 5,023.2 2,594.6 2,729.2 1,821.4 604.6 56 156 20,794.2 343,282

Density 299 333 270 189 272 250 7,477 3,202 338 258

In terms of elevation, more than half of the region’s land area are within low elevation areas or below 100 meters elevation. These are areas where most food crops are grown and economic activities take place. On the other hand, about 36% of the region’s land resources are within the middle catchments (110-500 meters elevation) where temperatures vary widely and soil crusting, due to warm temperatures, could cause soil erosion. Water Resources The region has several river basins and water divides scattered throughout the islands of Panay and Negros that can adequately supply the region’s requirements for agricultural, industrial and domestic use. Its three major river basins: Jalaur and Panay Rivers in Panay Island and Ilog-Hilabangan River in Negros Occidental, have a combined drainage area of more than 1,400 km2 and a combined run-off of more than 3,500 MCM. Other major rivers are Aklan, SibalomGuimbal and Bago-Binalbagan, with drainage areas ranging from 852 to 1,945 km2. It has also 36 minor rivers, with Negros Occidental having the most number of rivers at 16 and the largest watershed areas at 4,757 km2. Water resources development is mainly oriented for domestic water supply, irrigation and hydropower. Little attention is given to proper utilization and scientific management. Climate and Weather The region has two types of climate: Type I has two pronounced seasons – dry from November to April and wet during the rest of the year; Type III where the seasons are not very pronounced – when it is relatively dry from November to April and wet during the rest of the year. The region has a peak rainfall occurrence in September and has the lowest in March to April. Average annual rainfall ranges from 2,267 mm to 3,328 mm. Like the rest of the country, it has high temperatures because of its tropical maritime setting and warm air currents. Mean temperatures range from 16

Regional Development Agenda CY 2010-2020

26°C to 28°C which considerably fit the requirements for crop production particularly cereals, rootcrops, legumes and perennials. Land Use Potentials and Constraints About 68% of the region’s land area of 20,213 km2 is classified as alienable and disposable and 32%, as forestlands. Of the total A & D lands, about 63% is suitable for growing crops while 42% of forestlands is considered as protection forests, where 24% is watershed forest reserves. In terms of land utilization, 82% of total land area is utilized for production and only 14%, for protection. Built-up areas occupy only about 4% of the total land area. Disaster-prone Risk Areas The region, like most parts of the country, is greatly affected by several natural hazards that constrain the development of its resources due to its unique geographic and geological settings. These hazards are impossible to prevent but their adverse impact can be mitigated by preventive measures. Among the hazards affecting the region and specific areas at risk are shown below: Earthquake-prone areas

Western Visayas is bounded by 3 major fault lines; Tablas Fault, Philippine Fault, and Negros Trench. The towns of Culasi, Antique and Libacao, Aklan are subject to seismic hazards due to the presence of Banglid, Dalanas and Timbaban minor faults. Buruanga Peninsula is directly affected by Tablas Fault while Himamaylan and Hinoba-an, Negros Occidental are affected by two parallel faults.

Tsunami-prone areas

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

Landslide-prone areas

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

Areas prone to volcanic eruption, lava flows and fallouts

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

Liquefaction-prone areas

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

Areas prone to tropical cyclones and storms

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

Regional Development Agenda CY 2010-2020

Flood-prone areas

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

Areas prone to salt water intrusion

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

Drought-prone areas

Usually affected are the alluvial plains due to the occurrence of El Nino phenomenon.

Mineral Resources The region is rich in metallic and non-metallic resources. Mineral ore reserves, which include primary copper, manganese and pyrite, are found practically in all provinces of the region. Estimated reserve for primary copper in Negros Occidental ranges from 85 to 505 million MT. Non-metallic minerals consisting of clay, cement raw materials, limestone for agricultural and industrial uses, silica, rock phosphate and guano, feldspar, sand and gravel are, likewise, abundant. Estimated reserve for limestone in Guimaras and Capiz ranges from 30 to 40 million MT. However, there is a need for a long-term mineral exploration and development program to assess the mineral potentials of the regionâ&#x20AC;&#x2122;s mountains and other areas believed to contain significant primary and secondary mineral deposits. In 2001, the region was the second biggest contributor in terms of gross value added in mining and quarrying sector in the country. However, mining operations at the moment are limited to small-scale mining and quarrying because of the suspension of operation of the two biggest mining companies in Negros Occidental in 2002. Presently, there are indications that these companies will resume operation. Major Tourist Attractions (Landscape/Seascape) Western Visayas is known for its colorful history and diverse culture with the presence of its distinct and fabulous landscapes, natural resources which include rugged mountains, breath-taking tropical coastlines and islands with panoramic view, along with other beautiful land formations that were developed into tourist areas. The attractiveness, accessibility, number of festivals and activities of Region VI are superior than most regions and are comparable to many in the world. 18

Regional Development Agenda CY 2010-2020

One of the major tourism zone in Region VI is the Boracay Island in the Municipality of Malay, Aklan. It is considered as one of the most beautiful islands in the Philippines, famous for its fine white sands, coral reefs and rare shells. The regionâ&#x20AC;&#x2122;s natural attractions that need to be preserved and protected for the future generations are as follows: Aklan Malay Banga Tangalan Altavas & Batan Kalibo

Boracay Island Tig-ayon Hill Jawili Falls and Campo Verde Tinagong Dagat Bougainvilla Beach

Antique Culasi San Jose Palma, Barbaza Sebaste Pandan & Libertad

Mararison Island Camp Autajay (Pina Beach) Hatay-hatay Resort Igpasungaw Falls Marble Mountain

Capiz Dumalag Roxas City Roxas City Mambusao Maayon

Suhot Cave Baybay Beach Olatuyan Islands Quipot Cave Igang-Maayon

Guimaras Sibunag Jordan Jordan

Nagarao Island Puting Balas Tatlong Pulo

Iloilo San Joaquin Carles Concepcion

Tiolas Sicogon Island Pan De Azucar

Negros Occidental Murcia Escalante Sagay Hinigaran Cauayan

Mambucal Mountain Resort Isla Puti Suyoc Island Enchanted Lake Linao Bulata Island

3. Economic Activity Comparative Economic Structure Region VI is the 4th largest regional economy in the country, the biggest outside of Luzon. In 2008, the Services sector contributed 48% of the regionâ&#x20AC;&#x2122;s GRDP, followed by the Industry sector 19

Regional Development Agenda CY 2010-2020

which contributed 27%, while the Agriculture sector accounted for 25%. From 1998 to 2008, the region’s Industry sector increased its GRDP share by 8% while Agriculture decreased its share by 12% indicating a transformation in the region’s source of economic growth. While the shift from agriculture to industry over the span of 10 years has been relatively slow, the diversification from an agriculture-dependent economy was manifested in the past decade. An indicator of this structural shift is employment, where jobs in non-agriculture steadily increased from 49% in 1998 to 57% in 2006, brought about by opportunities in the Industry and Services sectors. Figure 1. GRDP Percent Share, by Industrial Origin, 1998 & 2008

LEGEND:

Agricultural

Industry

Services

Source: National Statistical Coordination Board, Region VI

Economic Growth The regional economy grew relatively faster than the national economy. The average economic growth of Region VI was 7.7% during the period 2006-2007 compared with the 7.1% GDP growth during the same period. The following year (2007-2008), the regional economy expanded by 4.4%, higher than the 3.8% GDP growth. During these two periods, the Industry sector grew by 13.2% and 8.9%, much higher than the national. While the country suffered a slowdown in its economy in 2008, the region’s Manufacturing, Construction and Electricity and Water sectors, grew by 9%. Regional Economy vis-à-vis the Country’s Economy The region’s economy accounts for 7.3% of GDP. The biggest share is from the NCR which accounts for 33% of GDP, followed by Region IV-A (11.5%) and Region III (8.3%). The region continues to be a major growth player in the country’s economy, significantly contributing to the production of major agricultural crops and buoyed by its distinction as a prime tourist destination. 20

Regional Development Agenda CY 2010-2020

Poverty The benefits of the regionâ&#x20AC;&#x2122;s robust economic growth significantly helped reduce poverty in Western Visayas. Poverty incidence in Region VI went down from 39.2% in 2003 to 38.6% in 2006. The improvement is due to the focused-targeting of beneficiaries in its anti-poverty programs that are now put in place. Agricultural Production Western Visayas is still an agriculture-based economy. Even industrial activities are closely related with agricultural production. The total land area of the region identified as Strategic Agricultural and Fisheries Development Zones is 1,310,481 ha with around 825,603 ha or 63 percent used for agricultural production. The three leading crops in terms of area cultivated are rice (319,899 ha; 39%), coconut (123,478 ha; 15%) and sugarcane (111,401 ha; 13%). About 40% of rice lands are located in Iloilo while 80% of sugarcane lands are located in Negros Occidental. From 1998 to 2008, there were significant increases in the production of major agricultural crops such as rice, banana, corn and coconut due to the provision of adequate support and extension services. For CY 2008, rice production reached 2.1 million MT, more than double compared to CY 1998 with only 1.04 million MT. Western Visayas contributed 12.6% of the countryâ&#x20AC;&#x2122;s total palay production in CY 2008, placing second to Region II. Table 2. Production of Major Agricultural Crops, 1998-2008 (in MT)

Corn production increased significantly in CY 1998-2008 due to intensive promotion of high yielding varieties as an alternative cash crop for palay. Corn growers also increased due to demands from livestock and food processing industries. Region VI ranks 5th in corn production among all regions in the country. Mango is one of the major agricultural crops of the region that is being exported. In CY 2008, Region VI placed 7th in mango production among all regions. Mango production is largely prone to weather conditions affecting the flowering stage of fruit trees. That explains the erratic 21

Regional Development Agenda CY 2010-2020

fluctuation of mango production in the region. On the other hand, banana production has had an increasing trend in CY 1998-2008 placing Region VI sixth among regions in the country. Region VI is the largest sugarcane producer and sugar exporter of the country. Over the last ten years, annual sugarcane production ranged between 10-14 million MT. Sugarcane production remained flat during the past decade due primarily to the fluctuation in the price of sugar in the world market. Planters were generally hesitant to expand production due to uncertainties in the demand for sugar and related products in the world market as influenced by World Trade Organization policies and targets. The increasing interest in biofuels is expected to invigorate the sugar industry and, once again, return it to its pre-eminent status just like in the â&#x20AC;&#x2DC;50s. Better production machines, processes and the promotion of muscovado (raw sugar) as one of the regionâ&#x20AC;&#x2122;s major export products are expected to rejuvenate the sugar industry. There is a noticeable decrease in livestock production during the past 10 years, except in carabao. Cattle, goat and duck production showed continuing decline in recent years. The decline in cattle production can be attributed to the entry of cheaper beef from other regions and abroad. Demand for goat has also been declining due to taste preferences. Table 3. Production of Livestock and Poultry, 2000-2008

Swine production steadily increased over a period of 10 years while chicken production declined. The increase in swine production can be attributed to the increasing demand for pork in the local market. On one hand, the demand for chicken steadily declined due to rising prices of chicken in the local market and the entry of cheap chicken from other regions and from abroad. 22

Regional Development Agenda CY 2010-2020

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

There was a noticeable decline in commercial fisheries production the past 10 years. On the other hand, aquaculture production and municipal fisheries production slowly increased during the same period. It should be noted that aquaculture production has the biggest share in the total production output with an average annual increase of 9 percent for the past 10 years. The decline in commercial production could be attributed to the declining fish catch in traditional fishing grounds in the region, as a result of overexploitation, over-fishing and illegal fishing. Investments Based on the DTI Business Name Registration reports, a total of 9,963 firms were registered in Western Visayas in 2008 compared to only 6,582 firms in 2001. An average growth of 6.6% annually was noted for the past 8 years. Most establishments were registered in the province of Iloilo and Negros Occidental, and were mostly involved in wholesale and retail trading. Total investment generated by priority sectors and other assisted sectors in Region VI amounted to P 56.43 B while SEC registered firms recorded investments worth P2.66 B. Table 5. Private Investment for Region VI, 2001 - 2008

Regional Development Agenda CY 2010-2020

Small and Medium Enterprises The past 5 years showed a significant increase in the number of MSMEs in the region. From 2005 to mid-2009, MSMEs grew almost threefold from 700 enterprises to 2,027 enterprises. The bulk of SMEs in the region are agriculture-based. These include loom weaving, bamboo furniture and furnishings, aquaculture processing, fruits processing, cut foliage and horticulture. The increase in MSMEs may be attributed to the DTI’s One-Town-One-Product program. Figure 4. DTI-Assisted MSME 2005-2009

Source: Department of Trade and Industry, Region VI

Imports and Exports The region’s leading exports in 2008 were coal in bulk ($15.26 million), raw cane sugar ($10.8 million), crabmeat (($1.76 million), cane molasses ($655,200) and assorted frozen marine products ($129,951). Aside from coal, the region’s major exports were mostly agriculture products. On the other hand, imports for the region included wheat, fertilizer, LPG, ethyl alcohol, second hand cars/boat, medical equipment, and assorted furniture. Visitor Arrivals and Tourist Receipts Significant increases in visitor arrivals and tourist receipts were noted from 1998 to 2007. The rapid increase in domestic and foreign visitors could be attributed to the popularity of Boracay Island in Aklan and the increasing access of residents from Metro Manila to Boracay as a result of the Western Nautical Highway and the improvement of the Kalibo and Caticlan airports. Over the same

Source: Department of Tourism, Region VI

Regional Development Agenda CY 2010-2020

period, tourism activities also significantly increased in Guimaras, Southern Negros and Northern Iloilo. However, due to the world financial crisis, tourism industry suffered a setback in 2008. The situation is now slowly improving as the global economy is getting over the recession.

4. Social Services Health Inaccessibility to basic health services and facilities by poor families living in far flung areas, brought about by inadequate support for devolved health services, are among the factors that contributed to the unstable health status of the people in Region VI. From 2004 to 2008, the indicators on crude births, crude deaths, infant mortality and maternal mortality showed fluctuations and minimal improvements. Table 6. Selected Health Services Indicators, 2004-2008

The leading causes of sickness and death in the region continued to be almost the same for the part five years. Upper respiratory tract infection has been the leading cause of morbidity since 2003, followed by acute lower respiratory tract infection and pneumonia. Ten Leading Causes of Morbidity Ten Leading Causes of Mortality 1. Upper Respiratory Tract Infection 1. Hypertension and Cardio-Vascular Disease 2. Acute Lower Respiratory Tract Infection & 2. Pneumonia Pneumonia 3. Malignant Neoplasm (Cancer) 3. Hypertension 4. Injuries / Accidents 4. Acute Watery Diarrhea 5. T B Pulmonary 5. Influenza 6. Kidney Diseases 6. Bronchitis 7. Septicemia 7. Injuries 8. Cerebro Vascular Accident 8. Urinary Tract Infection 9. Diabetes 9. Pulmonary Tuberculosis 10. Chronic Obstructive 10. Parasitism 25

Regional Development Agenda CY 2010-2020

Health Insurance Coverage Membership under the Philippine Health Insurance showed an increasing trend from 2007 to 2009. This achievement brings PhilHealth closer to fulfilling its mandate of achieving universal coverage. The gains in 2009 were from all categories of membership: sponsored, 37%; voluntary/ IPP, 13%; government, 10%; private 32%; lifetime members or non-paying members, 32%; and overseas workers, 6%. The Sponsored Program is a realization of Philhealthâ&#x20AC;&#x2122;s goal of institutionalizing an integrated health care financing and delivery mechanism that will ensure accessible, affordable and quality healthcare to all Filipinos, especially the less privileged. Table 7. PhilHealth Membership by Program, 2007 â&#x20AC;&#x201C;2009

Source: Philippine Health Insurance Corporation, Region VI

Education The regionâ&#x20AC;&#x2122;s net enrollment ratios at the elementary and secondary levels have been decreasing for the past 5 years. For the same period, drop-out rates at the elementary and secondary levels have not significantly improved. Correspondingly, cohort survival rates (CSR), both at the elementary and secondary levels have also been decreasing. The decrease in enrollment rates at the elementary and secondary levels and the high dropout rates at the secondary level may be attributed to the practice of children, especially in the countryside, to assist in farms or do seasonal jobs to augment family income.

Regional Development Agenda CY 2010-2020

Table 8. Selected Education Indicators, SY 2004-2009

Housing The provision of housing to poor families showed an upward trend from 2001 to 2008. Beneficiaries of low-cost housing increased by 35 percent in 2008 while, the socialized housing program benefited 10,548 beneficiaries or an increase of 277 percent from the 2001 figure. The marked improvement of the housing program in the region could be attributed to the collaborated efforts of the housing agencies like, NHA, HDMF and HUDCC.

5. Infrastructure Power Although the dependable capacities of the Negros and Panay Grids from 2000 to 2009 appear to be generally stable, a progressive power deficit situation is observed in both grids during the period. With the passage of the Renewable Energy Bill, several private power companies have started putting up clean-energy plants in the region, addressing to a certain degree the need for more power generating plants in the region. Since the region, particularly, Panay Island, is at the tail end of the Visayas Grid (CebuNegros-Panay-Bohol-Leyte Grid), the region will continue to explore and develop other indigenous and renewable power sources and encourage the development of more power generating plants to ensure reliable power supply. Table 9. Power Situationer For Negros and Panay Grids, 2000-2009

Regional Development Agenda CY 2010-2020

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

Water Resources The percentage of households with access to potable water or level III water supply facilities rose from 68 percent in 2000 to 93 percent in 2009. In 2008, the MDG target was even exceeded by 43%. Irrigation development in Region VI made constant progress from 2000 to 2009 with total service area increasing from 109,969 hectares to 117,845 hectares and percentage of irrigated areas to irrigable areas growing from 38.24 percent to 51.16 percent. While Negros has the largest irrigable lands, Iloilo remains to have the largest irrigated areas. Transportation The ratio of paved roads to the total national road length in Western Visayas increased from 59.09% in 2000 to 77.84% in 2008. Improvements in the regionâ&#x20AC;&#x2122;s arterial road system during the last ten years were focused on increasing the regionâ&#x20AC;&#x2122;s road length and upgrading road conditions. It should be noted, however, that the national road system of the region declined by 118.39 kilometers during the same period because some road sections were abandoned by DPWH from its national road system. These road sections have very low utilization and have become unpassable.

Regional Development Agenda CY 2010-2020

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

The percentage of permanent bridges to the total length of national bridges in the region, likewise, increased from 82.56 percent in 2000 to 92.04 percent in 2009. However, following the declining trend in the total national road length, the total length of national bridges also dropped by 258.13 lineal meters. Some bridges were also abandoned by DPWH from its bridge system while other bridges were merged into one. Table 13. Length of National Bridges by Type, (in Lineal Meters), 2000-2009

The number of motor vehicles registered in the region showed a considerable increase during the period from 200,020 vehicles in 2000 to 333,442 vehicles in 2009. Better economic situation of people working here and abroad, and the continuing improvement of the road and bridge network account for this. 29

Regional Development Agenda CY 2010-2020

Aircraft movement in Western Visayas increased by 57.52% from 2004 to 2008. Similarly, passenger traffic grew by 57.83% during the period. Cargo traffic, however, rose by only 1.12%. Figure 7. Aircraft, Passenger and Cargo Traffic, 2004-2008

Two airports of international standards classified as principal airports/ class 1 are now operating in the region: the New Iloilo Airport in Sta. Barbara-Cabatuan, Iloilo and the New Bacolod Airport in Silay City. The Kalibo Airport in Aklan was recently classified as an international airport. There are two more principal airports: Roxas Airport in Capiz (Class 1) and the Godofredo Ramos (Caticlan) Airport in Malay, Aklan (Class 2). In Antique, a community airport, the Evelio Javier Airport, is serving the province. Sea passenger traffic, on the other hand, dropped by 13.07% while sea cargo traffic significantly grew by 65.09% during the period. The decline in sea passenger traffic may be attributed to more people availing of cheaper airfares brought about by the stiff competition of airline companies. Communication

Source: Philippine Ports Authority- Iloilo and Pulupandan

Access to information technology was made possible with the increase in the number of local exchange carriers (LECs) providing services to the different cities and municipalities in the region from 115 LECs in 2004 to 151 LECs in 2009. Telephone load density in the region showed an erratic trend during the period and a general decline from 2.5 per 100 population in 2000 to 1.8 in 2009. This may be explained by the growth of wireless and broadband technologies, resulting to more people availing of the Cellular Mobile Telephone Services (CMTS). To date, there are 887 CMTS stations in the region.

Regional Development Agenda CY 2010-2020

6. Governance and Security Tax Collection Performance The actual tax collection performance of the region from CY2001-CY2009 posted an annual average growth rate of 7.43%. Among the types of taxes, the highest percentage share is registered by the Value Added Tax with an average of 12.1% while income tax contributed an average 5.5%. The actual tax collection in 2008-2009 dropped at the negative level because of the damages wrought by natural calamities like Typhoon Frank which lowered the production of companies, considered as the top taxpayers of the region. Also, there were a considerable number of small businesses that closed because of the opening of big establishments, which remits their taxes not in the region, but in Metro Manila. Figure 8. Tax Collection Growth Rate, 2001-2009

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

Regional Development Agenda CY 2010-2020

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

There was an increase in expenditures of LGUs from CY2004 to CY2008. In terms of distribution, about 43 percent of expenditures went to general public services. Aside from other purposes (18%), expenses were incurred in economic services (17%), followed by health, nutrition and population control (10%) and education, culture and sports (6%). This reflects LGUâ&#x20AC;&#x2122;s priority on implementing programs and projects in their locality. With this distribution, it showed that lesser attention was given to sectors such as social services and welfare (3%), housing and community development (1%). Least priority was given to labor and employment which only account for less than 1 percent of LGUâ&#x20AC;&#x2122;s expenditure. Figure 10. Distribution of LGU Expenditure for CY 2004-2008

Regional Development Agenda CY 2010-2020

Crime Solution Efficiency The region strives to become a business and investment friendly region by 2010. Thus, peace and order situation needs to be improved. Crime volume averaged 3,443 from 2001 to 2008 with a crime solution efficiency of 94.97% during the same period. This might be attributed to the improvement in the police to population ratio from 1:1,047 in 2001 to 1:939 in 2008. This also improved police visibility from 84.8% in 2003 to 96.2% in 2008. The distribution of PNP personnel was based on the 90%-10% policy where 90% shall be in the field while 10% do office work.

B. DESIRED SCENARIO The increasing trend in the use of renewable energy due to growing concerns on global warming augurs well for the regionâ&#x20AC;&#x2122;s sugar industry. The increasing demand for ethanol and other biofuels is expected to enhance productivity among sugar planters, primarily in the provinces of Negros Occidental, Iloilo and Capiz. The resurgence of the sugar industry in these three provinces will significantly boost their local economies. The regionâ&#x20AC;&#x2122;s development will remain focused on its major strategic thrusts in agri-industrial development and tourism development. In agri-industrial development, priority will be given to the production of major agricultural crops such as rice, sugarcane, mango, corn, coconut and cashew, while support to the transformation of these products into processed goods for domestic and export markets will be given priority. Over time, footloose industries will emerge and small and medium enterprises will flourish and thrive. The tourism industry will remain vibrant and dynamic in the next decade, given the Super Region Development Strategy of the national government which identifies tourism as the major thrust of Central Philippines. Aside from Boracay Island in Malay, Aklan, other major tourism destinations will be promoted. These include the eco-tourism and diving sites in Southern Negros, southern part of Guimaras, northern part of Iloilo, western side of Antique and the eastern seaboard of Capiz. The white sand beaches and alluring natural attractions of these areas will be promoted. Cultural and religious tourism will also be intensified with the promotion of cultural and religious sites in Northern and Central Negros, Bacolod City, Iloilo City, Roxas City and Southern Iloilo. Annual festivals such as the Dinagyang in Iloilo City, Ati-Atihan in Aklan, Masskara in Bacolod City and Pintados in Passi City, Iloilo will be promoted and marketed to other countries. Parallel with the growth of the agri-industry and tourism sectors will be the growth and expansion of the business process outsourcing and information technology sectors. Business outsourcing jobs will grow by leaps and bounds in the major urban areas of the region, particularly in Bacolod and Iloilo cities. Iloilo and Guimaras will become the next BPO hubs in the country. Knowledge-based jobs will expand exponentially while ICT industries will increase.

Regional Development Agenda CY 2010-2020

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

1. Entice More Investments in Biofuels and Renewable Energy Mix The government will enhance its supportive role to the private sector in power generation and distribution. Among the major projects being proposed to augment the power needs of the region include Timbaban Hydro Electric Project in Aklan (P4.8 Billion), Igbolo Mini-Hydro Project in Iloilo, and the Negros-Panay Interconnection Uprating Project (P3.34 Billion). Currently, the region is experiencing a frenzy in the submission of proposals for the construction of biofuel and renewable energy projects. Among the proposals include the following: Wind Power Trans-Asia Oil Renewable Energy Corp. (TAREC)

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

San Lorenzo, Guimaras Aklan Aklan Antique Iloilo Iloilo Iloilo Ioilo Neg. Occ. Neg. Occ.

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

30MW San Carlos Wind Farm

San Carlos City Neg. Occidental

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

Sunwest Water & Electric Company, Inc. (SUWECO)

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

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

Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed

Oriental Energy & Power Generation Company

18MW Madalag Hydro Power

Madalag, Aklan

Proposed (P2.5Binvestment)

Hydro Power

Regional Development Agenda CY 2010-2020

JBIC STEP/ Japan External Trade Organization

23.5MW Timbaban Hydro Power

Madalag, Aklan

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

Petroxy Corp

80MW Aklan River Hydro

Libacao, Aklan

Proposed; Talks with LGU-Libacao had started

Alcantara and Sons 70MW Bago River Hydro and California Energy

Neg. Occ.

Shown serious interest

Sagay Water District

100kW Minapasuk Micro Hydro

Neg. Occ.

Proposed

ADB Grant

142kW Mambukal Micro Hydro Hiyang-Hiyang Micro Hydro

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

Asea One Power Corp.

6MW Biomass Plant in N. Antique

Antique

Asea One Power Corp. Green Power Panay Phils, Inc.

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

Negros

Proposed

17MW Biomass Plant embedded in CAPELCO

Capiz

on-going site prep

SCBI & other investors

12-15MW Biomass Plant

Conal Holdings/Alto Power Mngt. Corp.

9-15MW Carol-an Hydro

San Carlos City Eco- Proposed Zone (1.5B-investment) Kabankalan City, Neg. Occidental

Bio-Ethanol JG Summit Holdings Bioethanol Plant (30million liters of bioethanol annual capacity) Negros Green Resources Inc.

Bioethanol Plant with 120,000 liters-daily production capacity

Kabankalan City, Neg. Occ. Neg. Occ.

Proposed (P0.8B) Proposed (P0.98B investment)

Canlaon Alcogreen Bioethanol Plant with 60,000 liters-daily Neg. Occ. Inc. production capacity JG Summit Holdings Bioethanol Plant with 100,000 litersdaily production capacity Biodiesel

Proposed (P0.75B investment)

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

Proposed (P0.742B investment)

Regional Development Agenda CY 2010-2020

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

Enhance Agricultural Productivity and Support the Growth of Agri-Industries

The region’s priority economic activity will remain focused on agri-industries. Export winning industries such as crabmeat, frozen marine products and sugar products and by-products will be supported. Consistent with the government’s thrusts on food security, rice production will be increased and irrigated and irrigable lands will be protected from conversion to other uses. Given the rich fertile soil and good climatic conditions of the region, rice production will be expanded. Sugarcane production will be more vibrant with the increasing demand for “green fuel” in the local and foreign markets. Ethanol production will be supported and given impetus. The region shall remain as the leading sugar producer and also emerge as the leading ethanol producer in the country. DOST’s interventions to upgrade the technology in muscovado production among existing mills and promoting market-driven quality production for new mills, coupled with product packaging will further invigorate the region’s sugar industry.

3. Strengthen Backward and Forward Linkages of Major Agri-industries Corn production will be fully supported to cater to the growing swine industry in the region. Production areas will be expanded for food and feed production through inputs and marketing programs of the Department of Agriculture and Department of Agrarian Reform. Other agricultural crops, especially fruits, vegetables and fiber (abaca and piña) that can be processed into high-value goods will also be supported through the One-Town, One Product strategy and assisted under the DTI-SMEDSEP. Product quality and packaging improvements will be undertaken through tripartite cooperation among the NGOs, the LGU and the Department of Science and Technology. Agricultural crops with potentials for bio-fuels and livestock feeds production will also be promoted and provided adequate technical support. These include: cassava, coconut, sorghum, or even algae culture in the region’s vast farms. The provision of post-harvest facilities for rice and other major crops will be supported. Facilities and utilities catering to agri-industries will be strategically located in areas with known high levels of production and productivity. Likewise, expansion and rehabilitation of irrigation facilities will be implemented to boost rice production and productivity. The Bago River Irrigation System will be rehabilitated and improved while the Southern Philippines Irrigation Sector project: Magballo-Balicotoc-Canlamay Integrated Irrigation Sub-Project will be implemented.

Regional Development Agenda CY 2010-2020

4. Enhance the Growth of the Tourism Industry Parallel with the development of agri-industries will be the growth and expansion of the tourism industry. Indirectly, tourism activities affect land use activities in a locality, particularly in the demand for housing and infrastructure support and utilities. It impacts on protection areas like forest, mangroves and others. Site development will be sensitive to other land use need of local governments. Existing and potential tourism areas will be identified and delineated in local plans and their current economic performance vis-Ă -vis social and environmental impacts will be assessed. This is to determine areas where tourism development can be pursued further or discouraged, and to provide infrastructure support such as rest areas, accommodation facilities along tourism corridors, and other recreation amenities.

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

6. Develop Iloilo, Negros and Guimaras as the Next BPO Hubs Business process outsourcing (BPO) companies will be promoted in major urban hubs and in the Province of Guimaras. The regionâ&#x20AC;&#x2122;s high literacy and excellent proficiency in foreign languages augurs well for these types of businesses. In the next 10 years, critical infrastructure support for the digital network will be encouraged and appropriate incentives will be provided by local governments to ensure that these companies will thrive in the region. Private sector initiatives in communications industry will also be supported in view of expanding IT and business process outsourcing and off-shoring industries. These industries will not thrive unless critical public infrastructures and social delivery services are in place. Over the next 10 years, the government will focus on providing sufficient public infrastructure to encourage the development and expansion of these emerging industries.

7. Improve Access to Foreign Markets and other National Destinations With the construction of two airports of international standards in Iloilo and Kalibo, Aklan, the upgrading of existing airports in terms of navigational facilities will be given priority. Additional airports being proposed include the San Carlos City Community Airport (P100 Million) and the Kabankalan Airport (P757 Million), both in Negros Occidental, as well as, the Caticlan Airport (P2.5 Billion) in Aklan.

Regional Development Agenda CY 2010-2020

8. Improve the Intermodal Transport Network To promote more diversified tourism itineraries and ensure accessibility to tourism sites, integrated inter-modal transport systems will be developed. Key road links along the Western Nautical Highway will be improved to support inter and intra-regional linkages. These include: • San Enrique-Vallehermoso Road (La Castellana-Canlaon Section) in Negros Occidental – P368 M • Kabankalan-Basay Road (Hinobaan-Basay Section) in Negros Occidental – P175.35 M • Rehabilitation of San Jose-Patnongon Road in Antique – P140 M • Iloilo East-West Road (Concepcion-Sara for PCCP) • Roxas City Circumferential Road in Capiz – P350 M • Maayon-Cuartero Junction Iloilo-Capiz Road – P362 M • Various urgent bridge construction projects in Iloilo, Antique and Negros Occidental • Isabela-Sikatuna (Boundary) Road Improvement & Construction in Negros Occidental – P397 M • Concreting of the Access Road leading to Sibunag Port • Bridges for Prosperity Acceleration Projects in Antique, Aklan, Capiz, Iloilo & Negros Occidental • Panay East-West Link Road Project in Iloilo to Antique – P2.042 B. Likewise, expansion and upgrading of port facilities especially roll on-roll off (RORO) will continuously be pursued in areas along the Western Nautical Highway, especially the IloiloGuimaras-Negros routes. This will include the improvement of Barangay Ortiz Wharf in Iloilo; the Parola Pump Boat Terminal (Rotary Park-Iloilo-Guimaras Wharf) in Iloilo City; and JordanBuenavista Integrated Port System in Guimaras. Intermodal transport networks connecting production areas with processing centers, and processing centers with markets, will be identified and implemented to reduce transport costs of agricultural and industrial products. Currently being proposed is the rehabilitation of Panay Railway System from Iloilo to Capiz in the amount of P31 Billion. Aside from agri-industries and tourism, the region will also provide support to small and medium enterprises, business process outsourcing companies, IT industries, among others.

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

Regional Development Agenda CY 2010-2020

10. Improve the Delivery of Basic Social Services Two sanitary landfills in Iloilo City and Bacolod City will be implemented. Material recovery facilities (MRFs) will be installed in all barangays of the region. Local environmental monitoring bodies will be strengthened to monitor compliance with environmental laws. Education and health facilities and services will also be improved vis-Ă -vis domestic and industrial demands. Curricular adjustments in the formal education sector under DepED and CHED will be linked with industry-led thrusts in technical-vocational courses under TESDA and DOLE. Hospital facilities and services will be improved to meet first world standards. Medical tourism will be supported and given incentives to encourage foreign tourists to visit the region. Greater effort will also be made on improving health systems under the FOURmula ONE program of DOH to firmly address health and nutrition problems especially among poor households.

Regional Development Agenda CY 2010-2020

NEDA REGIONAL OFFICE VI OFFICE OF THE REGIONAL DIRECTOR RD Ro-Ann A. Bacal OIC-ARD Nicholas B. Rivas, Jr. Nelly P. Sustiguer Mary Ann L. Brotarlo PLAN AND POLICY FORMULATION DIVISION Atty. Raul S. Anlocotan Ma. Lourdes B. Miado Manuel Luis D. Dionio Ma. Leah L. Letrero Elizabeth J. Bugna Christinne Anne P. Gaitana PROJECT DEVELOPMENT, INVESTMENT PROGRAMMING AND BUDGETING DIVISION Engr. Gilberto A. Altura Ma. Teresa G. Guadalupe Melinda T. Jamelo Melvin V. Madriguera Yvette G. Batacandolo Ma. Solita O. Lequillo PROJECT MONITORING AND EVALUATION DIVISION Erlinda B. Chiu Alexis C. Prieto Othelo E. Derecho Alexander O. Aquio Danilo B. Molato KNOWLEDGE MANAGEMENT DIVISION Estela F. Paredes Cynthia C. Lumampao Rene A. Ledesma Ma. Isabel B. Blancia Joyalita B. Tigres August Melody A. Andong OPERATIONS DIVISION Ingrid L. Magno Anthony A. Borbon Ma. Gina A. Silloren Reynaldo C. Deopido Antonio C. Villanueva Melinda F. Narvaez Sandra D. Serguino Ronie A. Demonteverde Erwin L. Francisco

Gregorio E. Sierra Francis John C. Palabrica Romeo P. Cabayao Ismael A. Dacula, Jr. Larry P. Jalando-on Gary T. Quilantang Rodney A. Gucana Joselito S. Gatuteo

Regional Development Agenda CY 2010-2020