TECHNICAL REPORT 2007

TECHNICAL REPORT 2007

BRINGING DEVELOPMENT BACK TO THE PEOPLE

EXECUTIVE SUMMARY

In her 2006 State of the Nation Address, President Gloria Macapagal-Arroyo unveiled the Super Regions, a development concept aimed at harnessing the natural competitive advantage/s of major areas of the country as well as that of knowledge and technology. Five (5) distinct sub-economic regions of the country were formed - - the North Luzon Agribusiness Quadrangle, the Luzon Urban Beltway, Central Philippines Super Region, Mindanao Super Region, and the Cyber Corridor. With these enlarged development areas, economic and market potentials are expected to be boosted beyond what each region can generate, with economies of scale, synergies and complementation serving as added attraction to investors, lenders and aid donors. Through the Super Regions, development is being brought back to the people at a faster rate in terms of physical infrastructure, development of human capital and peaceful communities. Billions of pesos are being invested in the Super Regions, a result of the country’s much improved fiscal situation and macroeconomic condition.

At the same time, the government is making headway in the social payback of economic reforms. The social payback of economic reforms is manifested in the government’s mantra to gain 8 blessings by the year 2008, or investing in people for 8 by '08. The eight blessings are: job creation; stable cost of living: strong peso; more investments; pro-poor education; pro-poor hunger mitigation; housing, and health; green Philippines; and strong anti-terror.

A. ACHIEVED SUSTAINED ECONOMIC GROWTH

We have strong macroeconomic fundamentals. Economic indicators show a resilient and robust economy.

• Gross domestic product (GDP) grew solidly at 6.9% in the first quarter of 2007, the highest growth achieved in 17 years, while Gross National Product (GNP) expanded by 6.6%.
• Interest rates, as of May 2007, are at an all time low at 2.996%, making credit more affordable.
• Increases in prices of goods and services have slowed down as inflation rate in the first semester of 2007 averaged at 2.6%, one of the lowest in recent years.
• Overseas remittances are at record high levels. In May 2007, OFW remittances reached US$1.2 billion, the 13^th straight month that remittances breached the US$1 billion mark. Strong inflows from abroad boosted the country’s gross international reserves (GIR) to another all-time high of US $26.4 billion.
• We have lowered the fiscal deficit.

• The 2006 fiscal deficit of P62.2 billion (1% of GDP) was the lowest in eight (8) years. It is almost half the 2006 program deficit of P124.9 billion and 42% lower than the P146.8 billion deficit posted in 2005. Government revenues of P978.7 billion in 2006 is 0.5% higher than its target of P974.1 billion and 19.9% higher than the 2005 collections of P816.2 billion. Expenditures in 2006, meantime, amounted to P1.0 trillion, P58.1 billion or 5.3% less than the programmed expenditures of P1.1 trillion

Revenue collections for the 1^st semester of 2007 reached P510.3 billion, an increase of approximately 8.3% compared to the first semester 2006 revenues of P471 billion. BIR collections reached P334.7 billion (5.1% higher than the P318.4 billion collected during the same period last year) while BOC reached P92.2 billion (2.7% lower than last year’s collection of P94.7 billion). However, BTr’s income amounted to P34.2 billion, 6.3% lower than 1^st semester 2006 P36.5 billion collection.

• The 1^st semester 2007 fiscal deficit reached P41 billion, about 30.1% or P9.5 billion higher than the P31.5 billion deficit incurred during the same period last year. It exceeded the programmed ceiling of P31.3 billion by P9.7 billion or 31%. Nonetheless, the National Government shall vigorously implement the tax administration program to enhance collection efficiency, generate additional revenues from accelerated privatization efforts and sustain efforts to curb corruption leakages through the Run After Tax Evaders (RATE), Run After the Smugglers (RATS) and Revenue Integrity Protection Service (RIPS) program in order to plug a looming fiscal deficit.

To further enhance government revenues, we are pursuing the privatization of government-owned assets, particularly power assets.

• In 2006, the government earned P5.8 billion in privatization receipts. This is more than double its P2.4 billion receipts registered in 2005. Among the big ticket items sold were the Philippine Telecommunications Investment Corp. shares, the PNOC-EDC IPO shares, and the International School property located in Taguig City.
• We privatized 11% of GenCo with eight (8) hydroelectric plants bidded out and turned over to private owners. Several medium and large plants are for bidding in 2007 including the 600-MW Masinloc coal-fired plant and the 600 MW Calaca coal-fired plant. The privatization targets are: 50% by 2007, 70% by 2008, and 100% by 2009.
• On TransCo, the next round of bidding for privatization is scheduled in November 2007. Meantime, we are reviewing the privatization process in terms of the generation and transmission asset disposal.

Government’s efforts to promote fiscal consolidation helped improve business confidence in the country that sustained export performance

• The Philippine Stock Exchange Index (PSEi) surpassed the 3,800 mark, a 27% increase from the 2,980 level at the start of 2007.
• Investments have been steadily flowing into the country.
• Total BOI-PEZA approved investments for 2006 amounted to P271 billion, 17% higher compared to 2005. For the first four months of 2007, BOI-PEZA approved 234 projects worth P73.33 billion in investments, 194% higher compared to the P24.9 billion approved during the same period last year
• Investments in infrastructure/industrial service facilities in 2006 reached P96.72 billion, accounting for 35.33% of total investments, and posting an increase of 1,685% compared to 2005. For the first four months of 2007, top investments came from the manufacturing sector accounting for 39% of total investments. January to April 2007 investments in the manufacturing sector posted a 68% increase or P15.73 billion from P9.37 billion over the same period last year. Electricity, gas and water supply sector came in second with P10.85 billion. Real estate, renting, and business activities sector posted an increase of 22% from P5.3 billion in the first four months of 2006 to P6.52 billion this year. Meanwhile, investments in the IT services sector posted an increase of 95% from P3.11 billion in January to April last year to P6.06 billion this year.
• Foreign direct investments (FDI) in 2006 recorded a net inflow of US $2.35 billion, up by US$491 million compared to the 2005 FDI net inflow of US$1.85 billion, and exceeding the projected inflows of US$2.00 billion for the year. FDI for the first three months of 2007 posted a net inflow of US $710 million, an 18.5% growth from the same period last year.
• The 2007 Investment Priorities Program (IPP) was approved on 13 June 2007 providing incentive guidelines for 11 priority investment areas: Agriculture/Agribusiness and Fishery, Information and Communications Technology, Electronics, Motor Vehicle Products, Energy, Infrastructure, Tourism, Shipbuilding/Shipping, Iron and Steel, and Research and Development (R&D)/Training Institutions. Existing investors considered as global players or engaged in strategic industries are likewise encouraged to participate in the retention, expansion or diversification (RED) program for their operations in the country.
• In 2006, exports grew by 14% from US$41.3 billion in 2005 to US$47 billion, exceeding government’s 10% growth target for last year. This is the highest growth rate achieved in eight years. Electronic products, which grew by 8.4%, topped the export market accounting for 62.9% of total exports. Semiconductors recorded a growth of 10.1%. Other electronic products, such as medical/industrial instrumentation, telecommunications, and office equipment registered remarkable growth of 171.2%.

For the first four months of 2007, export earnings grew by 8.1% from US$15.1 billion during the same period last year to US$16.3 billion due to substantial increases in the export of electronics (7.1%), forest products (100.4%), iron and steel (88.7%), mineral products (71.5%), cathodes and sections of cathodes (58.7), metal components (31.7%), and processed foods and beverages (27.2%).

• On 18 January 2007, the Export Promotion Fund (EPF) was established by the Export Development Council (EDC) to provide supplemental financing for the promotion and development of Philippine exports. Projects to be funded are focused on sustainability, capacity building, product design, market research and publication, country image building and other export support services directed towards enhancing the competitiveness of Philippine exporters consistent with the Philippine Export Development Plan (PEDP) and the Medium-Term Philippine Development Plan (MTPDP). Initial funding was contributed by DTI (P100M), DBM (P100M), BSP (P50M), NEDA (P20M) and the Philippine Exporters Confederation (P10M).
• Executive Order No. 589 was also issued on 8 December 2006 exempting exporters participating in international trade fairs, exhibitions, selling missions and trade negotiations from paying travel taxes.
• To address our exporters concerns on power, particularly energy security and cost, we have implemented reforms in the power sector.

• The customers of distribution utilities and electric cooperatives under contract with National Power Corporation (NPC) will enjoy a per kilowatthour (kWh) reduction in their billings (to be reflected in the billing cycle of June 26-July 25, 2007) of P0.4733 in Luzon, P0.1836 in the Visayas, and P0.2758 in Mindanao. The effective rates after the reduction will now be P4.4911/kWh in Luzon, P2.9056/kWh in the Visayas, and P2.4820/kWh in Mindanao. Further reductions are expected because of the positive performance of NPC since 2005.
• The Wholesale Electricity Spot Market (WESM) in the Luzon Grid, which give consumers the power to choose the cheapest and most reliable electricity suppliers, started full commercial operations on 26 June 2006 with nine (9) generators and 12 distribution utilities (DUs) participating. As of 30 March 2007, it has increased to 20 generators and 15 DUs.
• To promote alternative fuels that will lessen our dependence on imported fuel, we are now implementing the 1% biodiesel-blend mandate under the newly passed Biofuels Act of 2006 (Republic Act No. 6357), which became effective on 6 May 2007. Selected gasoline stations have already offered 10% bioethanol or E10 in Metro Manila and key cities in the country. It is available in 120 retail outlets of Seaoil and 31 retail outlets of Shell. Coconut methyl ester (CME) or coco biodiesel is now commercially available while ongoing initiatives and development for other possible biodiesel feedstocks (e.g. jatropha) are being pursued. We currently have a total of 22 auto-LPG conversion shops operating in the country and about 7,000 auto-LPG converted taxis operating nationwide. Fifty-two (52) auto-LPG retail outlets are also in place in Metro Manila while 35 garage-based are operating in major cities such as Cebu, Davao, Cagayan de Oro and Iloilo. Using Malampaya natural gas, we are pilot testing the Natural Gas Vehicle Program for Public Transport (NGVPPT) in the Batangas/Laguna-Manila routes. The commercial operation of the mother-daughter station will commence with the initial 22 CNG buses plying along the southern corridor of Metro Manila. Some 70 CNG buses are targeted to operate by the end of the year.

B. BRINGING BACK DEVELOPMENT TO THE PEOPLE

With improved economic conditions, an energized investment climate, a strong peso, and improved fiscal scenario, the government is now able to invest in programs and projects that will bring back the fruits of economic development to the people.

Specifically, the government is investing in three areas:

1. Infrastructure, the backbone of a modern economy.
2. Social programs to ensure that the people get their rightful share in development.
3. Peace to ensure that development shall be long lasting and felt by all people.

These programs and projects shall be implemented under the Super Region Strategy.

In terms of project implementation, government can achieve more by investing in infrastructure projects that traverses provinces and regions as it spreads development across the country and to more people. Further, investing in the natural competitive advantage of the sub-economic regions will ensure that development shall be sustainable and fast because the basic ingredients for economic development, e.g., rich land, tourist attractions, and competitive and skilled human resource, are already present. The government need only invest in infrastructure projects that will further enhance the natural competitive advantages of each Super Region.

To formalize the formation of the Super Regions, the President issued on 19 August 2006 Executive Order Number 561, which restructured the Philippine economy into five Super Regions to bolster the natural advantages of the five distinct sub-economies of the country – North Luzon Agribusiness Quadrangle, whose development thrust shall be agribusiness; Luzon Urban Beltway, which shall be a globally competitive industrial and service center; Central Philippines, whose thrust will be tourism; Agribusiness Mindanao, which like NLAQ is naturally competitive in agribusiness; and the Cyber Corridor, whose development goal shall be information and communication technology and the knowledge economy.

Since its conception in 2006, the government has gone a long way in pursuing and realizing the development thrusts of each Super Region. Through social and physical infrastructures, government has brought development direct to the people.

The North Luzon Agribusiness Quadrangle (NLAQ) is composed of the Cordillera Administrative Region (CAR), Regions I, II, and portions of Region III, particularly north of Baler, Aurora, north of Tarlac City in Tarlac, north of Cabanatuan City, Nueva Ecija, and North of Subic, Zambales.

With agribusiness as the competitive advantage of NLAQ, the government with the support of local government units and the private sector have invested in five (5) airports, three (3) seaports, two (2) roads, three (3) major irrigation projects, two (2) cold chain facilities and two (2) major power infrastructures. A total of P34.65 billion will be allotted for the development and completion of these major infrastructure projects in NLAQ up to 2010. Together, these infrastructure projects shall boost agricultural production, hasten the delivery of agricultural produce from the farms to the markets, reduce transport costs, cut travel time, and increase farmers’ incomes.

Irrigation Projects. The construction and rehabilitation of three (3) major irrigation projects and small irrigation systems amounting to P18.641 billion will provide irrigation water to 125,614 hectares (has.) of land in NLAQ and contribute a total of 1.4 million metric tons (MT) to the annual rice production.

• The P7.86-billion Agno River Irrigation Project, expected to be completed in June 2010, will provide year-round irrigation to 34,450 has. of land benefiting 28,000 farm families in 17 municipalities and cities of Pangasinan. It is expected to contribute an additional 110,000 metric tons (MT) to the country’s annual rice production. This project is 3.12% complete. There are substantial accomplishments in the relocation of affected families (99.24% complete), construction of main and lateral canals (26.79% and 20.64% complete, respectively). Institutional development, which includes the training of farm leaders, is on-going.
• The Banaoang Pump Irrigation Project, costing P2.58 billion shall provide irrigation to 6,312 has. of land in eight (8) municipalities in the 1st district of Ilocos Sur. It is expected to produce an additional 72,900 metric tons (MT) of rice annually, thus, benefiting 5,334 farm-households. The project is 51.20% and is expected to be completed by December 2009.
• The Casecnan Multi-Purpose Irrigation and Power Project is a P5.8-billion irrigation project, which will generate a total service area of 82,020 has., benefiting 49,130 farmer families. Once completed, the project is expected to contribute an additional 1.2 million MT of rice. The project shall also supply 604 Gigawatt-hours (GWh) of electric power per year to the Luzon grid. This project is 85.78% complete and shall be completed by December 2008. A total of 6,000 hectares will be irrigated by the end of 2007.
• On small irrigation projects, a total of P1.47 billion was released in 2006 and 2007 for NLAQ. A total of 64 national/communal irrigation systems were restored, repaired and rehabilitated for 2006 and from January to June 2007. The 64 irrigation systems restored in CY 2006 -2007 are able to service 2,832 has., which yielded 17,841 MT of rice, benefiting 2,286 farm families.

Major Road Projects. The implementation of major trunkline projects would concretize 185.34 kilometers of roads in NLAQ. These road projects are envisioned to strengthen economic linkages between Region II and CAR, promote development, and help farmers, like the vegetable farmers of Benguet, transport their produce to Metro Manila and other urban areas faster and safer.

• The improvement of the Mount Data-Bontoc-Banaue sections of the Halsema Highway, costing P1.78 billion shall be completed by 2009. To date, a total of 15.24 kilometers of intermittent sections of the 89.5-kilometer Mount Data–Bontoc section up to Banaue section has already been rehabilitated and improved. The improvement of the road, which shall be completed in September 2009, will decrease travel time from Baguio to Bontoc from 6 hours and 30 minutes to 3 hours.
• The Bontoc-Tabuk-Tugeugarao Road is undergoing upgrading and concreting. To date, a total of 5 kilometers of intermittent sections of the 95.84-kilometer Bontoc-Tabuk road has been completed. This road is expected to be completed by October 2009 and will reduce travel time from Bontoc to Tuguegarao from 5 hours and 30 minutes to 3 hours.

Farm to Market Roads. Farm to Market Roads (FMRs) are being constructed to help farmers transport their produce from the farm to these major roads to the market. We are building 600 kilometers of farm to market roads in NLAQ this year, of which 200 kilometers have been completed. This is North Luzon’s share of the 3,000 kilometers targeted for the whole country with a total allocation of P3.30 billion.

Post Harvest Facilities. The P13-million worth of post harvest facilities are envisioned to improve and preserve the quality of the farmers’ vegetables as these are brought to the trading post. The installation of the pre-cooling facilities in these production areas would help ensure stable prices of vegetables particularly during the rainy season.

• The La Trinidad Fruit and Vegetable Minimal Processing and Packaging Plant and the Buguias Pre-Cooling and Packaging Plant are both more than half complete (75%) and shall be completed in August 2007. Both projects aim to increase the shelf-life and marketability of Benguet’s highland vegetables, increase the productivity and income of farmers, as well as reduce their post harvest losses.

Airports and Seaports. To speed up and lower the cost of transporting agriculture products and exports and promote tourism, five (5) airports and three (3) seaports are now being constructed in NLAQ.

• The Bagabag Airport in Nueva Vizcaya is undergoing survey works onsite for the preparation of the Program of Works (POW). This P73-million project will provide facilities that will enhance the safety of aircraft operation as well as meet the expected increase in air travel demand, conservatively estimated at 1,393 tourists by 2010 from the 1,266 tourist arrivals in 2004 and shall be completed in March 2008.
• The P471.40-million upgrading of the airport in Poro Point in San Fernando, La Union to international standards started last 1 June 2007 and shall be completed by December 2011. The Poro Point International Airport will make accessibility to and from San Fernando, La Union easier from Southeast Asian countries and the rest of the country.
• The two airports in Batanes, the Basco and Itbayat airports shall be constructed by the DOTC. Construction for both projects will commence in August 2007. The Basco Airport and the Itbayat Airport, costing P74.14 million and P81 million, respectively, will harness the cultural and tourism potentials of the province and develop the fishing industry in the Northern part of Luzon. Both airports are expected to be completed by April 2008.
• The P15-million construction of the Casiguran Airport airstrip is 19.6% complete. The rehabilitation of the project will provide an easier, faster, safer means of transportation to and from Manila to Casiguran.
• The development of the P47.74-million Dingalan Port in Aurora is 85% complete and shall be finished in September 2007. The construction of the P49.77-million Passenger Terminal Building started last 14 June 2007 and is expected to be completed in February 2008. Once completed, the port will serve as an alternative mode for land transportation in case obstruction is posed by mudslides from the nearby mountains.
• The construction of the breakwater of Port Irene in Sta. Ana, Cagayan is already 88% complete and is expected to be completed by October 2007 while detailed engineering for the rehabilitation of Port Irene has already been completed. The whole project shall be completed by 2010. The rehabilitation and development of the port will enhance regional development. It will likewise develop the tobacco industry and will provide access by sea instead of coursing imports and exports to and from Metro Manila.
• The feasibility study for the P5.5-billion Salomague seaport in Ilocos Sur will start in October 2007. It is envisioned as the transshipment and alternative port to congested Manila ports. Once completed in 2011, it would serve as the shipping and cargo handling requirements of the provinces of Ilocos Norte, Ilocos Sur, La Union, Abra, Pangasinan and Baguio City.

Energy Reliability. Harnessing NLAQ’s alternative energy resource, such as wind power, will not only help promote the country’s energy program but would also help save the country dollar reserves and promote clean air.

• The Batanes Wind Diesel Hybrid System in Mt. Humhao, Mahatao, Batan Island, Batanes has been operating since August 2004. The wind project is generating a total of 2.771 MW annually.
• The P780-million, 33-MW Bangui Bay Wind Project Phase II in Ilocos Norte is expected to provide an estimated annual power production of 24.60 GWh. Phase I has been completed and commissioned in June 2005. The additional 5 x 1.65-MW wind turbine units comprising Phase II will be open for commercial operation by June 2008.

Environment Projects. The following are projects that are implemented to ensure the sustainable development of NLAQ.

• For 2007, we will be planting 6.08 million seedlings in NLAQ. Part of these seedlings will be fruit trees in support of NLAQ’s agri-business thrust and to provide jobs and income in the uplands.
• The Super Region now has twenty-two (22) Protected Areas with a total of 1,082,862 has. We proclaimed eight (8) additional protected areas since 2001, which includes the two phases of the Quirino Protected Landscape in February 2004 and February 2005 and the Peñablanca Protected Landscape and Seascape in 2003.
• For the first time, the water quality in our major beaches most frequented by tourists, is now being monitored. Starting 2004, we are monitoring 14 beaches in North Luzon, such as the Hundred Islands, Lingayen beach, and Currimao beach.
• Geo-hazard mapping will determine areas that are prone to landslides and forewarn people of danger areas, especially during typhoons. Ninety-nine (99) out of the 310 cities and municipalities or 32% of the Super Region have undergone geo-hazard mapping. We have completed 71% of the municipalities in Apayao, 50% in Quirino, 46% in Cagayan, 20% in Nueva Vizcaya, among others. By 2010, we shall complete geo-hazard mapping for the whole Super Region.

Luzon Urban Beltway

The Luzon Urban Beltway (LUB), which covers the whole NCR, Region IV-A, Provinces of Marinduque, Oriental Mindoro, Occidental Mindoro, Pampanga, Bulacan, Bataan and the southern portions of Tarlac, Aurora, Zambales, and Nueva Ecija, is home to almost 27 million people or 35.21% of the whole country’s population. The Super Region accounts for 55.7% of the country’s total GDP. Metro Manila remains the trade and commercial center of the country while other areas in the Super Region are burgeoning industrial zones. Already being the forerunner in industrial and commercial activities among the Super Region throughout the Philippines, LUB can be developed, coordinated and unified, to become a globally competitive urban, industrial, and services center.

To achieve this, the government is implementing various infrastructure projects that are aimed at speeding up transport and lowering cost to make the super region more competitive. These projects include:

Roads. Seven (7) roads totaling P51.13 billion to interconnect the industrial, commercial, and transport hubs of the Super Region are being constructed.

• The P20.97-billion Subic-Clark-Tarlac Expressway Project is a 93.77-kilometer four-lane expressway that will connect the major development areas of Central Luzon. Once completed in January 2008, travel time from Manila to Subic will be reduced from 2 ½ hours to 1 ½ hours and Manila to Tarlac from 2-3 hours to 1 ½ hours. The whole project is currently 83.45% complete.
• The Marikina-Infanta Road to the Port of Real begins at the junction of Sumulong Highway to Masinag, Antipolo, traversing the Sierra Madre, and ending at the intersection of Sinaloan-Famy-Real-Infanta Road. Of its 99.40-km length, about 18.84 kms. have been completed. This P1.55-billion project will be finished by December 2009.
• The C5 Expressway (NLEX-SLEX) Project is a P12.77-billion road that will connect the North Luzon Expressway (NLEX) to the South Luzon Expressway Link (SLEX) via the C5. There are ongoing preparations for the right-of-way acquisition, survey, parcellary plans, and detailed engineering. Civil works will start in 2008.
• The SLEX Extension involves the rehabilitation, upgrading, expansion of the Alabang Viaduct and the toll road from Alabang to Calamba, and the construction of a toll road connecting SLEX to the Southern Tagalog Arterial Road (STAR). This P8.21 billion-project will be completed by March 2009. The widening of the Alabang Viaduct is almost 14% complete while the construction in the TR2-A section is more than 17% complete. The other sections are undergoing pre-construction preparations.
• The P2.52-billion STAR Project involves the construction of a 19.74-kilometer road from Sto. Tomas, Batangas to Batangas City. The project, which is due to be completed by December 2007, will cut travel time from Sto. Tomas to Batangas City by 40 minutes. Currently, the project is 41.27% complete.
• The Manila-Cavite Toll Expressway Project (R-1 Expressway Extension), which amounts to P4.30 billion, is an expressway from Kawit, Cavite to Zapote. To be completed in November 2008, the project is currently 15.45% complete, with the construction works in the Zapote Interchange Bridge 24.14% complete.
• The P807.70-million Tarlac-Nueva Ecija-Aurora-Dingalan Port Road will connect the Subic-Clark-Tarlac Expressway to the Dingalan Port in Aurora by 2009. This 125-km road is 20.35% complete, with substantial accomplishments in the Dingalan Port-Dingalan Section (38.16%) and Sta. Rosa Jct.-Fort Magsaysay (28.82%). Pre-construction activities are ongoing for the other road sections.

Ports. Ports amounting to P7.91 billion to speed up and promote cheaper and faster transport of goods are being constructed.

• The Subic Bay Port Development Project is a P6.91-billion modernization project of the Subic Port involving the rehabilitation of existing facilities (e.g., container terminal), construction of a new terminal, and the installation of gantry cranes. The project is currently 96.62% complete. Container Terminal 1 will be inaugurated on 19 July 2007 while Container Terminal 2 and other remaining works shall be completed by September 2007.
• The Lucena Port Project involves the construction of a passenger terminal building and the concrete paving of a back-up area costing P65.37 million. The passenger terminal building has already been completed while the concreting of the back-up area is 36.92% complete and shall be finished by December 2007.
• The P32.86-million reconstruction of the Cawit Port in Boac, Marinduque will strengthen Ro-Ro links to Marinduque. The reconstruction of the port is more than half complete with the construction of the RoRo ramp, the rock causeway pier and wharf having started on 12 February 2007. The whole project shall be completed by December 2007.
• Once the P898.33-million Batangas Port Development Project is completed, the port will be able to accommodate Panamax and post-Panamax size vessels and an estimated cargo volume of approximately 3 million tons annually. The passenger boarding bridges are already complete. The access road and flyover to the port are now 74.44% complete and are expected to be opened by 30 October 2007. The cranes to carry the containers of Batangas Port will arrive in October 2007 and be operational by January 2008.

Airports. Two airports to boost LUB’s accessibility to foreign travelers and cargo are being constructed.

• The improvement of the Diosdado Macapagal International Airport (DMIA), costing P59.06 billion, aims to transform the airport into the best international logistics and services center in the Asia-Pacific Region. The Terminal Radar Approach Control is complete with the radar equipment officially activated by the President on 4 April 2007. The mobilization for the construction of the passenger terminal building commenced on 6 July 2007. The construction is expected to be completed in January 2008. The detailed feasibility study of the DMIA Master Plan is expected to be completed by October 2007 and fully implemented by December 2011.
• The NAIA International Passenger Terminal 3, worth US$500 million involves the completion and operation of a new international passenger terminal on the 63.5-hectare site of the Villamor Air Base with a capacity of 13 million passengers per year. The opening up of the NAIA Terminal 3 had suffered setbacks due to the need for remedial works. The conduct of additional material tests for use in the preparation of the Detailed Engineering Design for the remediation of the structurally defective portions of the facility is in the contract preparation stage.

Railways. There are P86.28-billion worth of investments in railways that will not only speed up travel but will also connect North and South Luzon and close the LRT and MRT loop.

• The P61.91-billion Northrail Project is a transit system, which involves the construction of an 80.2-km rail track that will cut travel time from Caloocan to Malolos, Bulacan by 42 minutes and from Malolos to Clark, Pampanga by 1 hour and 7 minutes. It will also reduce travel cost from Caloocan to Clark by P60 by the time it is completed on May 2010. The review of the project design for the Caloocan to Malolos Phase is ongoing while the NorthRail Management and DBP are working on the loan for the Malolos to Clark Section.
• The P10.99-billion Southrail Project Phase 1A, which will be completed by December 2009, will rehabilitate the railway line from Calamba, Laguna to Lucena, Quezon. This will shorten travel time from Calamba to Lucena from 3 hours and 21 minutes to 1 hour and 41 minutes and reduce fare cost from the current P80 bus fare to P32. The government is undertaking negotiations with the China Eximbank for the project’s funding.
• The Northrail-Southrail Linkage Project Phase 1 involves the rehabilitation of the 34-km railway from Caloocan to Alabang while Phase 2 covers the upgrading of the 27 km railway from Alabang to Calamba, Laguna. This P6.98-billion project, which will shorten travel time from Caloocan to Calamba from 2 hours and 38 minutes to 1 hour and 20 minutes and cheaper by P38 from the current bus fare of P70, will be completed by December 2010. On 1 June 2007, we had the groundbreaking of the Caloocan-Alabang section while relocation is ongoing in the Alabang-Calamba section.
• The P6.4-billion LRT Line 1 North Extension, is a 5.4-km elevated line seamless from the Monumento Station of LRT Line 1 to the North Avenue Station of MRT 3. The transit system, which is capable of carrying 530,000 passengers per day, will reduce travel time from Monumento to North EDSA from 21 minutes to seven minutes. The project’s feasibility study is currently being prepared by the project’s consultants. The project will be finished by May 2010.

Energy Reliability. The current dependable power capacity in Luzon will not be able to meet the projected power demand and required reserve starting 2010. An additional capacity amounting to about 150 megawatts (MW) is needed. To meet these system requirements, capacity additions are in the works.

• Tokyo Electric and Marubeni through TeaM Energy Corporation announced a $350 million expansion of the Pagbilao Coal-Fired Power Plant by 350 MW by 2010-2011.
• Sumitomo and J. Power are currently undertaking a feasibility study for a 360-MW expansion of the Caliraya-Botocan-Kalayaan Power Plant for 2010-2011.

Environment Projects. To ensure the sustainability of LUB’s development, the government shall implement projects to ensure environmental protection, promote continuous water supply, and prevent flood control.

• We are regularly monitoring the water quality of eight beaches in the LUB. These beaches are White Rock in Subic; Baloy Beach in Olongapo; Montemar Beach and Bagac Coastal Area in Bataan; Puerto Azul and Caylabne in Cavite; Sigayan Bay in Batangas; and Puerto Galera in Oriental Mindoro.
• The 300-million liters per day Treated Bulk Water Supply Project amounting to $100 million shall benefit 2.25 million people living in the areas of Muntinlupa, Parañaque, Las Piñas, Pasay, Bacoor, and Imus. This project is set to be finished by April 2009. The MWSS is currently working on a solicited scheme.
• The P4.7-billion Pinatubo Hazard Urgent Mitigation Project (PHUMP), Phase 3 will benefit the towns of Sismuan, Guagua, Lubao and San Fernando City in Pampanga. With this project, the flood level in these areas are expected to decrease and flood damages to lessen. The project, which is set for implementation shall be completed in March 2010.
• The P5.18 billion-KAMANAVA Area Flood Control and Drainage System Improvement Project will relieve flooding in the Caloocan, Malabon, and Navotas areas through flood control and drainage improvement works. One spine pumping station has been completed in August 2006 and started its operation in February 2007. Three more pumps are expected to be completed by the end of 2007.
• Before 2001, the region had 18 protected areas covering 140,462 has. Since then, another four protected areas with an area of 43,367 has. were added. The President issued a Proclamation establishing a critical habitat and eco-tourism area within the 175-hectare coastal lagoon of Las Piñas and Parañaque, which serves as a wintering ground of endangered migratory birds.
• A total of 11,086 has. of land has been reforested since 2000 in the LUB. For this year, an additional 1.04 million seedlings shall be planted, many of which will be planted in urban areas.
• We have completed the geo-hazard mapping for 95 of the 195 cities and municipalities in the Luzon Urban Beltway. We have completed the mapping for Marinduque and Oriental Mindoro while at least 70% of Occidental Mindoro and Quezon have been mapped. By 2010, we shall complete the geo-hazard mapping in the Super Region.
• The government has been implementing programs to promote clean air, resulting in the decline in the level of total suspended particulates since 2003 in nine out of the 10 monitoring stations in Metro Manila by an average of 4.3% every year. The biggest improvement has been recorded in Valenzuela, EDSA-East Avenue, San Lazaro, and Pasay City Hall area. We are targeting to bring down total suspended particulates to the tolerable standard of 90 micrograms per normal cubic meter by 2010.

The Central Philippines Super Region is composed of the entire Bicol Region, Western, Central, and Eastern Visayas, the provinces of Romblon, Palawan, and Camiguin, and the islands of Siargao. These areas combined attracted 29% of the country’s foreign tourists in 2006. The Super Region’s competitive advantage lies in its unique and lush natural wonders, as well as warm and friendly people. The Central Philippines is therefore envisioned to be the premier tourist destination of the country.

The Super Region’s tourism potentials shall be enhanced by increasing infrastructure investments that will make intra-regional and extra-regional travel faster and more comfortable. In addition, social and environmental projects are being implemented to ensure sustainable development in these tourist areas. All these projects will help increase tourism arrivals, tap the development potentials of even the smaller islands, and spur micro, medium, and small enterprises, agribusiness, and other job-generating activities.

Airports. Sixteen (16) of the 31 priority airport projects throughout the country are located in Central Philippines. These airports shall be part of the intra-regional and extra-regional transport system that will make key tourist destinations in Central Philippines more accessible.

• The P8.76-billion New Iloilo Airport Development Project in Cabatuan and Sta. Barbara, Iloilo was completed on 18 March 2007 and inaugurated on 13 June 2007. It started its operations on 14 June 2007, replacing the old airport in Manduriao. This airport can service 1.2 million passengers and 11,500 metric tons of cargo annually. It can also accommodate large aircrafts with seating capacities of 276 passengers. There were 2,600 jobs generated during its construction and 500 when the airport started its operations.
• The P6.38-billion New Bacolod-Silay Airport located in Silay City, Negros Occidental, was completed on 10 July 2007. The new 188-hectare airport complex can accommodate 1.2 million passengers and 19,000 metric tons of cargo. The airport project generated approximately 1,000 jobs during construction.
• The development of the P105-million Kalibo Airport in Aklan shall make travel to Boracay more convenient. The airport’s airfield lighting system has already been installed and the glideslope is for calibration and shall be given a permanent shelter once site acquisition, which is 80% complete, is finished. The entire project, which also includes the construction of a passenger terminal building, is targeted to be completed in December 2007.
• On the P142-million Guiuan Airport in Eastern Samar, the apron has already been finished and the concreting of the apron and taxiway is 65% complete. The rehabilitation of the terminal building and the upgrading of the access road are in the bidding stage. This airport, which shall be completed in January 2009, shall promote tourism in Eastern Samar and improve the socio-economic climate in the area.
• The Siargao Airport project in Surigao del Norte costing P58 million aims to serve the tourists visiting the well-renowned surfing waves of Siargao. It is targeted to be completed in December 2007. Currently, the upgrading of the existing apron and taxiway is 47.85% complete, while the extension of the apron and taxiway and the construction of the parking area and fence are in the bidding stage.
• In Palawan, there are four (4) airports being developed to increase tourism in the island:

• The P303-million San Vicente Airport Development Project in Northern Palawan started in February 2007 and shall be completed in January 2008. The airstrip construction is almost one-third complete, while the continuing construction activities of the runway and the upgrading of the apron and the taxiway are in the bidding stage. Land acquisition is also ongoing.
• On the P1.25-billion Busuanga Airport Project in Coron Island, Palawan, the concreting of the apron and runway is 94.50% complete and is targeted to be finished by August 2007. The improvement of the passenger terminal building, vehicular parking area, apron, and drainage system started in April 2007 and is expected to be completed by December 2008. For Phase 2, the contract for the FS Master Plan was awarded in June 2007. Civil works based on the Master Plan shall be completed by June 2010.
• The Notice of Award for the P3.25-billion Puerto Princesa Airport was issued last 23 May 2007, with activities scheduled to commence by end-July 2007 to February 2008. Phase 2 of the project shall be finished by October 2010.
• The P303-million new Balabac Airport in Southern Palawan is in the feasibility study stage. Construction activities are targeted to start in October 2007. The airport is targeted to be completed in December 2009.

• The P1.12-billion Tacloban Airport Redevelopment Project involves the asphalt overlaying of the existing airport runway as well other redevelopment activities to bring Leyte into the country’s tourism circuit. Redevelopment activities shall start in August 2007 and shall be finished by October 2010.
• The access road and perimeter fence of the P290-million Dumaguete Airport in Oriental Negros was completed on 16 March 2007, while the runway widening and asphalt overlay and the improvement of the passenger terminal building are in the bidding stage. The detailed engineering for the installation of the airfield lighting system is already complete. Once the airport is complete in April 2008, it shall attract electronics and semi-conductor companies to locate in Valencia, Oriental Negros and boost tourism.
• The Kabankalan City Government shall construct the new P303-million Kabankalan Airport in Negros Occidental to provide travelers and tourists faster and easier access to beaches of Sipalay. Earthworks and right-of-way acquisition have been ongoing since 2006 and shall be finished by the first quarter of 2008. Construction activities shall start once the earthworks are completed. The project shall be finished in 2009.
• The P2.87-billion Panglao International Airport in Bohol shall replace the existing Tagbilaran Airport. Construction of a new airport of international standard shall support the projected increase in tourist arrivals in the area. Feasibility study of the project started in April 2007 and is 64% complete as of 20 June 2007 while right-of-way acquisition is one-fourth complete. Construction is expected to commence in November 2008 and end in April 2010.
• The P3.44-billion Bicol International Airport in Daraga, Albay shall serve tourists who wish to see the famous Mount Mayon. As of 30 June 2007, the detailed engineering is in the bidding stage and land acquisition is ongoing. Construction is scheduled to commence in May 2008 to December 2010.
• The Bulan Airport in Sorsogon is a P15-million project that will provide tourists better access to the famous Butanding or whale sharks. The parcellary survey is already complete, while the runway upgrading is in the bidding stage and right-of-way acquisition is ongoing. Target completion date of the whole project is in 2008.
• The new P303-million San Jose Airport in Romblon shall be developed by the Euro Asia and Group Co., Ltd. in the Carabao Island. The feasibility study and land acquisition activities are ongoing. The timetable of the project shall be determined once the detailed design is completed. The project shall be completed by 2010 and will help make the Carabao Island another tourist destination in the country.

RoRo Ports. To further enhance the tourism potential of the Central Philippines, the President has expanded the country’s nautical highways. Seventeen (17) priority Roll-On-Roll-Off (RoRo) ports are under construction, rehabilitation, and expansion.

• Construction of the P92.46-million Sibunag Port Development Project in Guimaras is ongoing since April 2007 and is set to be completed in April 2008. Port development activities include the construction of a RoRo ramp, rock causeway, breasting dolphin, and port lighting system. The Sibunag Port is connected to the existing Jordan Wharf through the Sibunag-Jordan road.
• The Cebu Port is linked to Bohol through the existing Tubigon Port and onto the Ubay Port and Jagna Port through the Bohol Circumferential Road, which was inaugurated last May 2007. The widening of the causeway and reclamation of the backup area of the Ubay Port started on 8 March 2007 and are half-way complete. The port improvement project costs P43.74 million and is targeted to be completed in September 2007.
• The Jagna Port Development Project in Bohol, amounting to P59.76 million was completed on 4 April 2007 and inaugurated on 9 May 2007. The Jagna Port connects Bohol to Camiguin through the Mambajao Port.
• The extension of the RoRo ramp of the Mambajao Port in Camiguin started on 1 April 2007 and is more than 25% complete. Civil works for the reclamation of backup area is one-third complete, while the Notice of Award for the passenger terminal building was issued to the winning contractor on 4 June 2007. The entire project amounts to P77.59 million and shall be completed in November 2007. The Mambajao Port is connected to the existing Guinsiliban Port through the Guinsiliban-Mambajao Road, whose slope protector and guard rails installation was completed on 25 June 2007. The Guinsiliban Port serves as the gateway to Mindanao.
• Aside from the Jagna Port link, the Ubay Port is also connected to Southern Leyte through the Maasin Port. The P99.92-million Maasin Port was completed on 8 October 2006 and inaugurated in February 2007. The port connects the RoRo system to the Limasawa Port for diving in the marine sanctuaries of Limasawa.
• On the P17.6-million Limasawa Port Project in Southern Leyte, the pier and RoRo ramp is 67% complete and shall be completed by September 2007. The construction of the passenger terminal building started in June 2007 and shall be completed in October 2007.
• For the Eastern Nautical Highway, the Bogo Port in Cebu will be provided with a RoRo ramp estimated to cost P23.6 million. Construction started on 18 June 2007 and shall be completed on 22 December 2007. This port shall connect Cebu to Biliran through either the Naval or Maripipi Ports. It will also connect the RoRo system to Masbate through Esperanza Port.
• The P52.82-million-Naval Port Development Project in Biliran involves the construction of a passenger terminal building, currently 60% complete, construction of a RoRo ramp, and rehabilitation of the port’s deck. Civil works on the RoRo Ramp and deck started in March 2007 and shall be completed in December 2007.
• Construction of the P49.10-million Maripipi Port in Biliran, which involves the construction of a RoRo ramp, passenger terminal building, and backup area, has been ongoing since 15 March 2007. The project is now 22.37% complete and shall be finished by February 2008.
• The Esperanza Port in Masbate is a P134.34-million project that shall connect to Aroroy Port through the Esperanza-Aroroy Road. It involves the construction of a RoRo ramp, platform, rock causeway, backup area, and passenger terminal building. Civil works were temporarily suspended on 10 May 2007 due to site acquisition problems, which the local government committed to fast-track. Currently, construction activities are 0.05% complete and are expected to be finished in May 2008.
• The P96.47-million Aroroy Port Development Project involves the construction of a RoRo ramp and a backup area. As of 30 June 2007, the project is 32.05% complete and is targeted to be completed in January 2008. The Aroroy Port is connected to the Claveria Port in Burias Island, Masbate.
• The P125.39-million Claveria Port in Burias Island, Masbate started in April 2007 and shall be finished in April 2008. This port is linked to the Pasacao Port in Camarines Sur, which has been operational since 2002.
• The San Pascual Port worth P42.84 million is another RoRo port in Burias Island that will link Masbate to the Eastern Nautical Highway. The contract for the civil works is under review and the project’s target completion date is in September 2008.
• On the P117.15-million Pantao Port in Libon, Albay, the construction of the rock bulkhead, retaining wall, fendering and mooring systems is close to 75% complete. The target date of completion for the whole project is on 19 October 2007.

Roads. Road networks are being constructed and rehabilitated throughout the Super Region to ensure that travel from the various entry points to the tourist destinations are fast, safe, and reliable.

• The P40.68-million Iloilo City-Sta. Barbara Road is an initial section of the Iloilo-Aklan Road that will help spread Boracay tourists to other destinations in Panay. It will also function as the main access road leading to the New Iloilo Airport. Civil works of the 3.89 km-road project started on 29 March 2007 and is 18.07% complete. Its target date of completion is in 2009.
• The 2.28-km Metro Iloilo Radial Road in Jaro, Iloilo City is being constructed to reduce traffic congestion in Iloilo City and the Leganes and Zarraga town propers. This P34.04-million project, whose construction started on 29 March 2007, shall be finished by 2009.
• The P417.59-million Aklan-Libertad-Pandan Road in Antique is undergoing prequalification by the Japan Bank for International Cooperation (JBIC). This road, which shall allow tourists in Boracay to spill over to destinations in Antique, shall be completed in December 2009.
• The Panay Island Road Network Project shall improve the roads throughout Panay. The total project cost is P2.08 billion and shall be completed by 2010.
• The construction of the 9.45-km Cebu North Coastal Road, which stretches through the coastal areas of Mandaue City, and the towns of Liloan and Consolacion, costs P2.31 billion and shall connect Cebu City to the Bogo Port. Construction of the Casanga Bride and two (2) road approaches with a total length of 1.39 km, started on 19 June 2007 while the construction of an 8.06 km road, including the Suba Bridge, one (1) pedestrian overpass, and the Tayud underpass, shall start upon release of funds. The whole project is expected to be completed by 2010.
• The 450-km El Nido-Bataraza-Rio Tuba Road, costing P3.21 billion, shall serve as the road backbone of Palawan. The road improvement project involves five (5) sections, two (2) of which have already been completed. The Puerto Princesa-Taytay Section was inaugurated on 31 March 2006 and the El-Nido Taytay Section was completed on 28 March 2007. The remaining three (3) sections shall be completed in September 2009.
• The P2.40-billion Bohol Circumferential Road, which shall link the Jagna, Tubigon, and Ubay RoRo Ports, was inaugurated on 09 May 2007.

Railway. The Southrail shall be constructed from Calamba, Laguna to Matnog, Sorsogon to make travel from Manila to Bicol faster, cheaper, and more comfortable. Updating of the feasibility study and the housing inventory of Phase 1B and Phase 2 of the P50.88-billion Southrail Project is ongoing. Civil works shall start upon completion of Southrail Phase 1A, which stretches from Calamba to Lucena. Phase 1B shall stretch from Lucena, Quezon to Legazpi Albay while Phase 2 shall stretch from Comun, Albay to Matnog, Sorsogon.

• By 2009, the projected power demand in the Visayas Grid is expected to exceed the existing dependable capacity of about 200 MW. To temporarily address this problem, two (2) power plants shall be constructed, namely, the 20-MW Nasulo Geothermal Power in Negros (to be constructed by PNOC-EDC) and the 200-MW Coal-Fired Power Plant in Cebu (to be constructed by KEPCO). Both projects will be commissioned in 2009-2010. The long-term solution to the power gap is privatization of the geothermal power plants in Oriental Negros, Southern Leyte, Albay, and Sorsogon "as is where is". This will allow the private investors to expand their energy capacity before 2009.
• An ethanol corridor in the island of Negros shall be created from San Carlos City in the north to Tamlang Valley in the south.

• Site development activities or ground works for the P1.78 billion San Carlos Bioenergy project in Negros Occidental is 18% complete. The erection of major facilities is expected to commence in January 2008 and commercial operation is targeted to start in October 2009.
• On the Tamlang Valley in Oriental Negros, the DENR turned over 24,178 has. of land to the Philippine Forest Corporation (PFC) on 22 June 2006 for conversion to a biofuel plantation. On 22 June 2007, the PFC and the Herminio Teves and Co. forged a Memorandum of Agreement for the bioethanol project. Survey works of the area to delineate boundaries will start in August 2007.
• More than 59% of Masbate has been energized since May 2007. By December 2007, 70% of the province shall be energized and by 2008 100% of Masbate and all barangays in the Philippines shall be fully energized. In addition, a new 13-MW clean coal power plant will be operational in Masbate by 2008. This will increase customer coverage from 125,000 to 500,000 customers on a 24- hour service.

Environment Projects. Aside from the major infrastructure projects, environmental programs are being implemented in the Central Philippines to ensure sustainable development in the Super Region alongside increased tourism activities.

• A total of 49,680 hectares have been reforested in Central Philippines since 2000, the biggest share among all the Super Regions. Reforestation was mostly concentrated in Regions VII and VIII. For 2007, 5.7 million seedlings, including magroves and fruit-bearing trees will be planted.
• Since 2001, eight (8) Protected Areas in the Central Philippines with land coverage of 564,135 has. were added to the 22 existing Protected Areas, equivalent to 473,442 has. This increased the area for protection in the Super Region by more than 100%. The eight (8) Protected Areas are the Tubbataha Reef and Rasa Island in Palawan, Mt. Isarog in Bicol, Northern Negros, North West Panay Peninsula in Antique, Panglao Island in Bohol, Samar Island, and Central Cebu.
• The DENR has been monitoring water quality in 17 major beaches in the Central Philippines to ensure that tourists swim in clean water. Some of these beaches are Boracay, El Nido, Club Paradise, Sogod Beach, Cebu Beach Club, Maribago, White Sands, Coco Grove, and Olot Beach. Under this program, the local governments and resort owners are adviced to improve their waste disposal system, which would consequently improve water quality of the beaches.
• The government has completed the geo-hazard mapping of one-third of Central Philippines. Of the 493 cities and municipalities in the Super Region, 165 cities and municipalities have geo-hazard maps. This includes the entire Camarines Norte, Biliran, and Southern Leyte while at least 70% of Albay, Leyte, and Romblon have already been mapped. The government is prioritizing the geo-hazard mapping of the eastern seaboard of the Philippines facing the Pacific Ocean, where most typhoons originate. Geo-hazard mapping in the Central Philippines shall be completed by 2010.

Mindanao Super Region

The Mindanao Super Region, which is composed of Regions IX, X except Camiguin, XI, XII, Caraga except Siargao, and the Autonomous Region of Muslim Mindanao, has a competitive edge in agribusiness, especially in high value crops, which can be further harnessed by major infrastructure support. Mindanao accounts for over 40% of the country’s food requirements and contributes more than 30% to the national food trade. However, despite its competitive advantage in agribusiness, Mindanao has the poorest regions and provinces in the country. The development strategy for the Super Region therefore shall ensure that efforts to address Mindanao’s development imperatives are accelerated.

Roads. The major road projects in Mindanao are mainly intended to bring farm produce to the market faster and at least cost and to cut travel time for travelers. These projects, which will be constructed until 2010, are being built for a total cost of P12.868 billion.

• The Dakak-Dapitan Road Project involves the widening of 10 kilometers of road in Dapitan City leading to Dakak. This P210-million project will provide a more reliable, efficient, and safer transport infrastructure, which will further enhance the tourism potentials of Dapitan City and Dakak. It is expected to be completed by August 2009.
• The Dinagat Island Road Network involves the improvement and rehabilitation of 15 kilometers of road that shall connect the municipalities of Cagdianao and Loreto, Dinagat, San Jose, Basilisa, Libjo, and Tubajon in the newly created province of Dinagat Island. At a cost of P100 million, the project is divided into nine (9) sections. Construction started in April 2007 and the project shall be completed by January 2008.
• The P90-million Hawilian-Salug-Sinakungan Barangay Road involves the opening and upgrading of 35.8 kilometers of barangay roads in Esperanza, Agusan del Sur. The project proposal has been endorsed by the Department of Agriculture (DA) to the Department of Budget and Management (DBM) for funding.
• The Lebak-Maguindanao Road, costing P1.952 billion and also known as the Awang-Upi-Lebak Road, is an 88-km project that traverses the provinces of Maguindanao and Sultan Kudarat. It shall provide access to the centers of agricultural, industrial, fishing, commercial and tourism activities in Mindanao. Pre-qualification for the three contract packages of the project are under preparation. The whole project will be completed by October 2009.
• The Sibuco-Siraway-Siocon-Baliguian-Gutalac Coastal Road in Zamboanga del Norte will serve as a backbone link connecting seven (7) coastal towns and two (2) major cities in Region IX, the Zambaoanga Peninsula—Zamboanga City in the south and Dipolog City in the north. The project shall be completed in October 2009 at a cost of P1.326 billion. Construction works in the Siraway-Siocon and Sibuco-Siraway sections are ongoing, while detailed engineering for the Siocon-Jct.Baliguian and Jct.Baliguian-Gutalac sections are ongoing.
• The Surigao-Davao Road Project involves the rehabilitation and improvement of 448 kilometers of road at a cost of P6.52 billion. Straddling the provinces of Surigao Del Norte, Surigao del Sur, and Davao Oriental, it is divided into five (5) Sections: a) Bacuag-Claver, b) Marihatag-Hinatuan-Bislig, c) Manay-Mati, d) Cortez-Tandang-Marihatag, and e) Bislig-Manay. Currently, the Manay-Mati Section in Davao Oriental is three-fourths complete. The rest of the other sections are under different stages of project implementation. The project is expected to be completed by May 2010.
• The Panguil Bay Bridge is a 2.36-km bridge linking Tubod, Lanao del Norte and Tangub City, Misamis Occidental. This project will facilitate the unimpeded flow of goods and services between Lanao del Norte and Misamis Occidental. A total of P121 million out of its total cost of P2.67 billion is being allocated in the FY 2007 budget. The implementation arrangement of the project is being finalized with the assistance of the World Bank-International Finance Corporation. DPWH is considering the proposal to include the LGUs in the implementation of the project.

Airports. The seven (7) airport projects in Mindanao, aside from providing a faster mode of transport of people, are also meant to provide an efficient means of transporting produce from Mindanao to the Luzon Urban Beltway. These seven airports cost a total of P6.24 million.

• The Butuan Airport in Agusan del Norte is a P250-million project involving the extension of the runway and improvement of the air navigation system. Runway extension was bid out on 29 May 2007 while detailed engineering (DE) for the improvement of the air navigation system is still ongoing. The airport shall be completed in May 2008.
• The rehabilitation of the Cotabato Airport is expected to be completed in 2007, at a cost of P85 million. The asphalt overlay of a portion of the runway is almost complete. Procurement is on-going for the continuation of the asphalt overlay.
• The Dipolog Airport in Zamboanga del Norte involves shore protection, asphalt overlay, and widening of the runway at a cost of P115 million. Shore protection covering 132 meters out of its 2,146-meter length is complete and 13 more meters are expected to be completed on 21 August 2007. Asphalt overlay and widening of the runway is 100% complete while the continuation of runway widening and shore protection of the balance of 2,001 meters is in the bidding stage.
• The P5.39-billion Laguindingan Airport Project involves the construction of a new airport in Misamis Oriental, including new runway, taxiway, apron and other airside facilities; new buildings such as passenger terminal building (PTB), cargo facilities; supply and installation of air navigation and support facilities and other airport equipment and vehicles. Procurement of contractor for the construction of the airport is currently ongoing. The airport is expected to be completed by May 2011. Construction of the access road started on 11 July 2007 and will be completed by April 2008.
• The Ozamis Airport Project involves the rehabilitation of the terminal building, vehicle parking area, and expansion of apron at a total cost of P86 million. Civil works for the runway markings and obstruction removal is in the procurement stage but construction of riverbank protection and concreting of runway is almost 40% complete.
• The Pagadian Airport in Zamboanga del Sur is a P515.76-million project divided into two phases. For Phase I, the initial asphalt overlay of the runway is 95.40% complete while bidding for the asphalt overlay of the rest of the runway was held on 14 June 2007. Civil works for Phase II is expected to start in June 2008 and end in September 2009.
• The P257-million rehabilitation of Zamboanga Airport in Zamboanga del Sur will enhance the operations of the Zamboanga Airport and make travel safer and more comfortable. The initial asphalt overlay of the runway is 100% complete, while the rest of the immediate improvement, such as the construction of elevated water tank and powerhouse, and rehabilitation of the passenger terminal building (PTB), is 99.5% complete.

Ports. There are two major (2) port projects in Mindanao, costing P970.32 million, that are expected to contribute to the enhancement of the Super Region’s competitive edge in agribusiness.

• The P574.23-million Port of Cagayan de Oro in Misamis Oriental involves the upgrading and rehabilitation of the existing back-up area and the construction of a back-up area for the newly constructed wharf. The upgrading and rehabilitation of the existing back-up area is 95.93% complete while the construction of a back-up area for the newly constructed wharf is 40.10% complete. The port shall be completed in January 2009.
• The Davao Port in Sasa, Davao City is under rehabilitation and port expansion at a cost of P396.09 million. The rehabilitation of the quay was completed on 16 April 2007 while port expansion is 48% complete. The port expansion is expected to be finished in March 2008.

Energy Reliability. The completion of the 210-MW Mindanao Coal-Fired power plant by the National Power Corporation in 2006 increased the aggregate dependable capacity to about 1,706 MW, resulting in adequate power in Mindanao until 2008. However, by 2009, Mindanao shall need an additional capacity (demand plus reserves) of 100 MW to ensure sufficient supply of power. In 2010, another 100-MW baseload plant will be needed and from 2011 to 2013, a 150-MW baseload plant shall be needed each year. In 2014, a 200-MW baseload plant shall be required. The total required capacity from 2009 to 2014 is 850 MW. To address these power gaps, the government has outlined the following programs:

• On Generation

• Optimization of Agus II Hydroelectric Power Plant by 60 MW in 2008;
• Completion of the 70-MW Run-of-River Hydro in 2009;
• 50-MW Mt. Apo 3 Geothermal Power Project; and
• 100-MW potential expansion of Mindanao Coal.

• On Transmission

• By 2009, the P8-billion Abaga-Kirahon-Maramag-Bunawon Transmission Project will establish the backbone transmission system from Northern Mindanao, where majority of the cheap and environment-friendly hydro plants are located, to Southern Mindanao, where bulk of the major industrial and commercial customers are located.

Environment Protection. The government shall ensure that while Mindanao develops its ecosystem shall be protected.

• Since 2006, the DENR has reforested a total of 48,460 has. in Mindanao. Most of these reforested areas are in the Davao and CARAGA Regions. For 2007, the government will be planting an additional 11.17 million seedlings, including fruit trees.
• Since 2001, six (6) Protected Areas with an aggregate area of 53,944 has. were added to the Mindanao Super Region’s 25 Protected Areas, bringing the total to 31 and increasing the area for protection by 5.6%, or 1 million has. The new Protected Areas are the Mt. Malindang Natural Park, Initao-Libertad Protected Landscape and Seascape, Timpoong and Hibok-Hibok Natural Monument, Mt. Balatukan Range Natural Park, Mt. Hamiguitan Range Wildlife Sanctuary, and Mati Protected Landscape.
• The DENR monitors the water quality (levels of coliform) in 10 major beaches in Mindanao, including Dakak, La Vista, Samal Island, and Cabadbaran. The DENR informs the local governments and the resort owners of the results of its monitoring so they can improve their waste disposal system and water quality to attract more tourists.
• The DENR has mapped and identified landslide-prone areas in 42% of the Mindanao Super Region or 122 out of the 293 cities and municipalities. In particular, it has completed the geo-hazard mapping of Davao Oriental, Agusan del Norte, Agusan del Sur, and the provinces in the eastern seaboard of Mindanao while 75% of CARAGA and 50% of Region XI have been mapped. The DENR expects to complete the geo-hazard mapping of the whole Mindanao by 2010.
• To promote alternative fuels that are good for the environment, the DENR will create a biofuels corridor along the Pagadian-Zamboanga Road where it can grow varied feedstocks like cassava, sweet sorghum and Jatropha.

According to AT Kearney, a top Netherland-based consulting firm, the Philippine Cyber Corridor ranks 8^th in the 2007 survey of preferred Information and Communications Technology (ICT) destinations in the world. For 2006, the ICT industry has brought in P3.6 billion, employing 244,000 ICT-skilled workers nationwide. In 2007, the sector expects to generate revenue of P5.2 billion and employ 403,400 ICT workers. This target will be aided with the expansion of the Cyber Corridor by identifying potential locations outside Metro Manila for ICT investors. The Cyber Corridor continues its objective of boosting telecommunications, technology, and education by implementing its priority ICT projects that shall enhance interconnectivity and research and development initiatives. Projects identified and prioritized for implementation until 2010, which are included in the 2007-2010 Comprehensive and Integrated Infrastructure Program (CIIP) are the following:

• The Cyber Education Project is a P26.48-billion program that aims to improve the delivery of and access to quality basic education services. The Alternative Learning System (ALS) programs nationwide will allow majority of the public schools and out-of-school youths access to live and interactive broadcast instruction using satellite-based technology.
• On the People’s Television Network, Inc. (PTNI) Immediate Rehabilitation Project, the US EXIM Bank has already issued a Final Commitment on the loan for the PTNI Immediate Rehabilitation Project. Funding arrangements between the US EXIM Bank and the PTNI and DOF are for finalization. This P510- million project shall rehabilitate the existing broadcast facilities of PTNI, address disruptions in broadcasting services, and boost the transmitting power of the main transmitter at Quezon City.
• Feasibility Study of the Expansion and Upgrading of the People’s Television Network, Inc. is under review by the NEDA Secretariat. This project is in compliance with the draft National Telecommunications Center (NTC) regulations requiring broadcast companies to upgrade their broadcasting network from analogue to digital transmission. The P3.21-billion project is expected to be complete by 2008.
• The Improvement of the Philippine Postal Corporation’s Financial and Operational State through Information and Communications Technology (ICT)/ E-Commerce Opportunities is a P3.21 billion-project that will be undertaken through a Build-Lease-Transfer scheme. It shall enhance the delivery of postal communication services through the modernization and improvement of postal operations through Voice Over Internet Protocol (VOiP).
• The Philippine Administrative Network Project Expansion, Phase II (PANP II) is scheduled for Loan Agreement signing in July 2007. This P3.38-billion project shall complete the PANP digital satellite IP-based broadband network and allow better broadcasting services from Batanes to Tawi-Tawi. It also aims to establish linkages between the Government Mass Media Group (GMMG) and the Philippine Information Agency (PIA) and other selected government agencies.
• On the Science and Engineering Masters and PhD Scholarship Program, the Commission on Higher Education (CHED) allocated P90 million for the program offered to all members of the faculty of public and private schools. The PGMASES supports 225 scholarships, consisting of 149 slots for Masters Degree Program and 66 slots for Doctorate Degree Program in various fields of science and engineering. The Masters Degree Program benefits 149 faculty member scholars with 93 Non-Thesis Masters, 56 Masters with Thesis and 10 Thesis Assistance while the Doctorate Degree Program has 41 PhD Local scholars, 56 Dissertation Grants and 10 Thesis Grants.

The Department of Science and Technology (DOST) is implementing the Accelerated Science and Technology Human Resource Development Program (ASTHRDP), which was offered to qualified public and private academe members. As of June 2007, 229 scholarships were awarded for the Academic Year 2007-2008. The program has catered to 213 scholars in the Masters Degree and 16 for the PhD Program in various science and engineering fields. An initial amount of P27.6 million was released to DOST-SEI for the month May 2007. Preparations are ongoing for the dissemination of the 2^nd batch of graduate scholarships for AY 2007-2008.

The government, vowing to bring the fruits of our growing economy direct to the people, increased public investment for a stronger and wider social safety net through greater access to cheaper medicine, better education, livelihood opportunities, among others:

• The cost of medicines commonly bought by the poor was reduced to half of their 2001 prices and these were made available nationwide through the Botika ng Barangay and Botika ng Bayan.

- Botika ng Barangay (BnB) was established in 2003 to ensure accessibility of low priced generic over-the-counter drugs and five prescription drugs recommended by the National Formulary Committee. About 9,623 BnB outlets have already been established nationwide including DOH Centers for Health Development, Botika Binhi funded by the members of the Peso for Health with counterpart from the local government unit, Health Plus and Botika sa Parokya. Based on a spot survey conducted in June 2007, the BnBs were able to effect a 64% price reduction in the drugs they carry.

- Botika ng Bayan Project was launched in December 2004 to make low-priced medicines more accessible to a greater number of people. The Botika ng Bayan is a nationwide network of privately-owned and operated accredited pharmacies that sell low-price drugs in competition with commercially priced medicines in the market. At least 1,200 BNB outlets have since been opened to serve the general public’s need for affordable medicines.

• Parallel Drug Importation was promoted to address the urgent need to make available quality low-priced medicines to the public immediately through the importation of similar branded drug products that are cheaper in other countries to be distributed to the local market. Fifteen (15) essential drugs are being imported and sold through 72 DOH retained hospitals and 3 LGU hospitals. In the 4-year service of the Parallel Drug Importation, it has been observed that some drugs are slowly reducing its prices from 14% to 82% reduction.

• Created a regulatory environment that ensures a level playing field and fair competition among various players in the pharmaceutical industry through the issuance of guidelines on the essential drug price monitoring, patent and trade secrets rights in connection with pharmaceutical products registration, and other issuances.

• The implementation of the National Health Insurance Program provided health insurance to about 3.5 million indigent families or about 17 million poor Filipinos.

• Released P500 M for the upgrading of 35 hospitals (22 LGU hospitals, 5 military hospitals and 8 DOH Hospitals) of which 31 hospitals will be upgraded from primary to secondary and 4 hospitals from secondary to tertiary. Upgrading of 14 LGU hospitals and 4 military hospitals are expected to be completed in 2007.

The Hunger Mitigation Program (HMP) was implemented to reduce the incidence of hunger. The HMP components are Food for School Program, Tindahan Natin Program and "Programang Gulayan ng Masa".

• Food for School Program provides rice to families who suffer from severe hunger through their children in Grade I, pre-schools and day care centers. As of June 30, 2007, a total of 611,570 severely hungry families in the 10 food poorest provinces, the national capital region and in the 4^th, 5^th and 6^th class municipalities of the 44 poorest provinces in the country, were provided rice, enabling their children to continue attending their classes and improving their nutrition status, as well.
• Tindahan Natin Program provides affordable basic food commodities at a discount. A total of 6,672,000 poor households in Metro Manila and in many depressed and far flung barangays of the country were able to buy basic food commodities at P18 per kilo of rice and P4.25/pack of instant noodles from 6,672 Tindahan Natin outlets. Fresh vegetables, meat, fish and fruits were brought directly from farms to 39 barangay food terminals strategically located in depressed barangays of Metro Manila, eliminating traders and making these commodities affordable to 718,075 poor households.
• The "Programang Gulayan ng Masa" aims to reduce urban and rural hunger and malnutrition through the adoption of integrated backyard gardening. As of May 15, 2007, about 494,844 households were benefited in the 31 priority 1 and 2 provinces as well as NCR, with a total budget expenditure of P86 million out of the total budget allocation of P91 million.

The Administration committed to increase access to quality basic education especially by the poor and the marginalized sectors, and improve the teaching-learning conditions in the public schools by providing adequate educational resources. It also provided training and skills development programs for better job opportunities.

• Ensured the smooth operation of the public school system by providing adequate educational resources such as classrooms, teaching and teaching-related positions, and textbooks.

• Constructed 15,000 new classrooms in 2006, twice exceeding the annual target of 6,000 classrooms, closing the gap at 1:50 double shift basis as of December 2006.
• Created a total of 36,692 new teacher positions/items from 2002 to 2006 to address the annual enrolment increase in public schools.
• Procured a total of 12,042,476 textbooks and teachers’ manuals as of 15 May 2007 to benefit 37,581 elementary and 6,301 secondary schools. The desired 1:1 textbook-to-pupil ratio has been achieved in elementary for the 5 priority subject areas (English, Filipino, Science, Mathematics and Social Studies).
• Improved the quality of teachers in the public school system through various forms of training and development activities, particularly English, Science and Math. Some 200,000 teachers and administrators in elementary and secondary education levels benefited from the re-tooling program in 2006.
• Improved the quality of and strengthened elementary education through Early Childhood Education/Pre-school Program and Every Child a Reader Program
• Organized a total of 2,200 classes which accommodates some 55,000 5-year olds in 2006-2007 for Early Childhood Education program. In addition, some 2,980 day care workers, new pre-school teachers, social worker supervisors in pilot areas (30 provinces, 91 municipalities in 11 Regions) were trained on the standard Curriculum and Instructional materials.
• Ensured that all children are able to read effectively at their level by Grade 3 under the Every Child a Reader program by developing the pupil’s reading and communication skills.
• Upgraded and integrated Madrasah Education through the full implementation of the Standard Madrasah Curriculum for Elementary in public school in 12 Regions. The remaining 5 Regions will implement the standard curriculum starting this school year 2007-2008. In addition, over 50 private Madaris have adopted the said Curriculum starting Grade I level and some 459 public elementary schools nationwide (excluding ARMM) which now offers Arabic language and Islamic Value Education (ALIVE) classes.

• Expanded access to secondary education by harnessing partnership with the private sector (Education Service Contracting and Education Voucher under the Government Assistance to Student and Teachers in Private Education (GASTPE) Program.
• Supported some 195,857 new students (131,809 students in 2006 for tuition subsidies and 64,048 students for education vouchers) under the GASTPE program. This is three times the yearly commitment of 50,000 slots.
• Provided scholarship under Private Education Student Financial Assistance (PESFA) scholarships to 11,254 students in SY 2006-2007 and will provide slots for 11,670 students in SY 2007-2008.
• Provided computer access to about 87% or 4,170 of the 4,769 public high schools nationwide, 40% or 1,930 of which have internet access and 15% or 513 have network Personal Computers.

• Opened the 9^th Philippine Science High School Campus in Argao, Cebu servicing the Central Philippines Super Region. The law allows for a PSHS Campus in each of the 16 regions of the country.

• Offered a total of 300 ladderized courses from 516 Higher Education Institutions/State Universities and Colleges (HEIs/SUCs) from July 2006-April 2007.
• Granted around 46,000 scholarships under the PESFA and PGMA Training for Work Scholarship Project (PGMA-TWSP). with Technical Vocational Education Training (TVET). Around 33,000 of these scholars already graduated in 2006

• Trained apprentices under the Kasanayan at Hanapbuhay or KASH Apprenticeship Program. From January 2005 to March 2007, 187,668 apprentices were trained in occupations officially approved for apprenticeship by TESDA (e.g., electric repairman, furniture maker, mechanic). There are 1,048 registered programs and 766 registered companies from January 2005 to March 2006. The said Program was re-launched in September 2004 to provide opportunities for beginners to earn while on training and to facilitate the absorption of apprentices into the regular workforce.

In line with the President’s program to provide housing to poor families and relative to her 10-point agenda to decongest Metro Manila by developing government and housing centers in Luzon, Visayas and Mindanao, the government pursued various projects aimed at providing security of tenure and housing assistance to the poor and to the low-income workers.

• Issued 100 Presidential Proclamations since 2001 covering 26,367 hectares which provided security of tenure to 195,475 families.
• Pursued the most massive resettlement program for families displaced from danger areas and sites earmarked for priority infrastructure projects, such as railways. As of 30 June 2007, 22,874 families affected by the Northrail Project and 12,349 families along the Southline have been relocated.
• Implemented the Community Mortgage Program (CMP) which enabled 42,150 families to own the land they occupy in 329 sites by providing almost P2.2 billion in mortgage financing from 2004 to 2006. From January to June 2007, a total of 5,924 beneficiaries of 70 projects were assisted by the government through the Social Housing Finance Corporation (SHFC) by providing P299.8 million in loans.
• Provided end-user and institutional financing from the HDMF and other government finance institutions to 195,128 families from 2004 to 2006, a 52% increase over the 128,175 availments for the period 2001-2004. For the first half of 2007, HDMF released a total of P11.8 billion to 17,735 borrowers for their housing loans.
• Reduced the interest rates for housing amortization provided by Home Development Mutual Fund (HDMF) or the Pag-IBIG Fund down to 6% from 9% for loans P300,000 and below in November 2006 and from 10% to 7% for loans above P300,000 to P750,000 in June 2007 to make them more affordable to low-income members. Moreover, the HDMF extended its repayment period to thirty years.
• Reduced documentary requirements for housing loans from 19 to 12 documents, and fast tracked processing time to an average of 7 working days. HDMF likewise lowered equity requirements for its housing loans.
• Enrolled 85,842 housing units in HGC housing guaranties from 2004 to 2006. For the first quarter of 2007, housing guaranties were provided for 670 units.

The government remains on track in terms of its goal of creating six to ten million jobs by 2010 through intervention in priority programs, as set out in the President’s 10-Point Agenda.

• Reports from various government agencies involved in the jobs generation program yielded 7.05 million jobs in two and a half years from 2005 to 2007, 117.5% of the six million minimum target and 70.1% of the 10 million high end target.

JOB GENERATION PROGRAM
Summary of Accomplishments for January 2005 to May 2007
As of 15 June 2007

• The government implemented a nationwide strategy to encourage and assist farmers, entrepreneurs and other clients to adopt technological innovations to boost their productivity and competitiveness and create job opportunities.

• Assistance in the technology upgrading of 10,420 SMEs all over the country through the Small Enterprises Technology Upgrading Program (SET-UP) in 2006: 5,278 in Central Philippines, 2,235 in Mindanao, 1,488 in Metro Luzon, and 1,419 in Northern Luzon Quadrangle. The program enables firms to address their technical problems through technology transfer and technological interventions and to improve productivity through better product quality, human resource development, cost minimization, waste management and other operation related activities.
• Setting-up of 63 Farmers’ Information Technology Services (FITS)/Techno Pinoy Centers for farmers and fishermen in 30 provinces in 2006 bringing the total to 204 existing centers nationwide: 80 in Northern Luzon Quadrangle, 57 in Mindanao, 55 in Central Philippines and 12 in Metro Luzon. These centers provided fast access to information and technologies in forms appropriate to the clients’ needs.

a. Labor Force Survey

• The April 2007 Labor Force Survey (LFS) posted an employment rate of 92.6%. Almost half or 49.3% of the total employed in this period were in the services sector; about the same percentage recorded in April 2006 (49.5%). The percentage of employed workers in the agriculture sector in April 2007 was 35.2%, while that for the industry sector was 15.6%.

• Out of the estimated 56.4 million population 15 years and over in April 2007, approximately 36.4 million were in the labor force placing the labor force participation rate at 64.5%

April 2007 Labor Force Survey

b) Employment Gains

• Facilitated the placement of 935,091 jobseekers in 2006 through the network of almost 1,500 Public Employment Service Offices (PESOs) nationwide, the Private Recruitment and Placement Agencies (PRPAs), and the conduct of jobs fairs where 101,194 jobseekers were hired.
• Facilitated the deployment of 1.06 million overseas Filipino workers to more than 190 destinations worldwide in 2006. This translated into real economic gains for the country as families of OFWs received a total of US$12.76 billion in remittances. Of the total number of deployed Filipinos in land-based occupations, 60 percent belong to the technical and high-end/high value skills category. This reflects a gradual shift in the bulk of OFW deployment from low-end to high-end occupations.

• Posted a record lowest annual average of labor cases resulting in strikes within the last 20 years, with only 12 in 2006. This translates to a total of P498,836,079 worth of productive man-days saved in 2006. For the 1^st semester of 2007, only one (1) strike was posted which translates to a total of P253,344,000 worth of productive man-days saved.

• In 2006, a P500 million scholarship fund assistance under the PGMA Training for Work and Scholarship Project benefited the unemployed and out-of-school youth. From January 2006 to March 2007, a total 217,925 jobseekers have been awarded scholarship certificates, including 2,090 OFWs pardoned by the King of Saudi Arabia and 77 OFWs from Lebanon. These certificates will enable the grantees to avail of relevant/appropriate training programs that will enhance their employability in hard-to-fill and in-demand skills in emerging industries, such as business-process-outsourcing (BPOs) and call centers.
• The Ladderized Education System uplifts technical-vocational education by helping trainees gain academic credits in pursuit of college courses. To date, a total of 516 ladderized degree programs and 1,192 TVET Qualifications are being offered by 300 educational institutions all over the country.
• Provided skills and entrepreneurial trainings and other capability building interventions and access to livelihood opportunities/ entrepreneurship development to 91,203 informal and other specific sector workers.
• Addressed the job-skills mismatch that causes structural unemployment by holding consultation-workshops with industry partners of the 9 Key Employment Generators (KEGS) identified in the MTPDP.

d) Enhanced Protection for OFWs

• Launched the national re-integration program for OFWs to address 3 strategic areas: individual re-integration, economic re-integration and community re-integration. A National Reintegration Center for OFW has been established to deliver reintegration services and to facilitate the mainstreaming of OFWs into the society.
• Intensified campaign against illegal recruiters through the conduct of 843 Pre-Employment Seminars (PEOS) and multi-media awareness campaign benefiting 65,873 participants.
• Conducted surveillance operations on suspected illegal recruiters in partnership with NBI and PNP-CILD which resulted to the closure of 12 establishments, arrest of 50 suspected illegal recruiters and filing for preliminary investigation of 316 illegal recruitments cases involving 694 victims

e) Enhanced Social Security for Informal Sector Workers

• As of December 2006, a total of 133,461 informal sector workers were covered with social security. The number of workers in the informal sector who availed of social security benefits increased tremendously to 81,141 in 2006 from 1,819 in 2002.

• As of April 2007, 39,994 out of the 41,945 barangays nationwide are energized attaining 95.35% barangay-level electrification. It is expected that an additional 1,155 barangays will be provided electricity services by end of 2007 and the remaining 880 barangays by end of 2008. Status of electrification in the four (4) super-regions is as follows: Northern Luzon Agribusiness Quadrangle, 98.14% energized; Luzon Urban Beltway, 99.01%; Central Philippines, 95.67%; and Mindanao, 89.49%.

The government has relentlessly conducted a campaign against terrorism, organized crimes, and illegal drugs. Various initiatives aimed at improving the operational effectiveness of law enforcement agencies were undertaken and global support were harnessed to address national security threats.

• Enacted Anti-Terror Law. On 6 March 2007, Republic Act No. 9372 or the Human Security Act was signed into law. RA 9372 will be fully enforced in July 2007. The law makes human rights protection a fundamental and integral component of RA 9372, which ensures the protection of human rights with equal fervor.
• Neutralized communist-terrorists and Abu Sayyaf Group. 840 Communist terrorists, including 17 top ranking communist personalities and 107 ASG bandits have been neutralized and 372 high-powered firearms were recovered. ASG personalities neutralized included Khadaffy Janjalani, Tajalul Ampul, Al-Sharie Amiruddin, Abu Hubaida, Jumdam Jamalul, Binang Sali Andang and Jainal Antel Sali.

• GRP-MILF peace process. The AFP and OPAPP formulated in March 2007 the Reminders and Additional Guidelines on the Primacy of the GRP-MILF Peace Process. The guidelines have been disseminated to major service and field commanders.
• GRP-MNLF peace process. The quota for MNLF integration into the AFP – 5,750 officers and enlisted personnel - has been filled up. Of these, 5,191 have been fully integrated. The remaining issues in connection with the implementation of the 1996 GRP-MNLF Peace Agreement are expected to be resolved during the scheduled 17-19 July meeting in Jeddah, Saudi Arabia.
• GRP-NDF peace process. The GRP proposed the resumption of formal peace talks with the NDF which have been suspended since 2004. However, the CPP through its spokesperson Gregorio (Ka Roger) Rosal rejected the government proposal stating that the NDF would declare a ceasefire first before the resumption of the peace talks.
• Involved military in socio-economic development activities. The Kalayaan Barangay Program was initiated by the AFP-DND to enhance convergence between the civilian agencies and the military in cleared conflict-affected barangays. The program includes basic infrastructures such as school buildings, water systems, farm-to-market roads, electrification and health center. To date, AFP Engineers have completed 87 school building projects and 39 water supply projects and begun work on two farm-to-market road.
• Implemented Programs for Returning Rebels. The implementation of the Balik Baril Project (BBP) was pursued under the government’s National Program for Unification and Development (NPUD). The program entices rebels to return to the fold of the law. Some 323 rebel elements were received and processed in 2006, with 229 assorted types of firearms and nine (9) various kinds of explosives turned in.

• Reduced the incidence of street crimes by 9% or 3,227 in the first quarter of 2007 compared to 2,953 during the same period in 2006. Of this, 2,604 crimes were resolved registering a street crime solution efficiency rate of 88.18%.
• Cut the supply of illegal drugs. Confiscated illegal drugs worth P1.74 billion and arrested 9,761 pushers and users in 8,604 anti-illegal drugs operations. A total of 7,107 drug related cases were filed in court.
• Beefed-up the capability of the police forces by recruiting 3,000 new PNP personnel and another 3,000 this July 2007, and procurement of needed materiel.

The President’s legacy to the people shall be a balanced budget, massive infrastructure development, and social safety nets.

Infrastructure development will be the principal legacy of the President.

While focusing its resources on the development of the Super Regions through the building of massive physical infrastructures, the Government shall continue to bring back development to the people by enhancing social infrastructure through investments in vital social needs to alleviate poverty.

In the next three years, government will secure and ensure funding for: 1) physical, intellectual, legal and security infrastructure to increase business confidence that will generate more and better paying jobs; 2) a stronger and wider social safety net through greater access to cheaper medicine, more affordable housing, better schools, better teachers, quality textbooks, more scholarships for gifted students, and better English language training to ensure English proficiency; and 3) bringing peace to Mindanao; crushing terrorism; and ending human rights abuses.

A brighter future awaits the Philippines. By 2010, the Philippines shall be well on its way to achieving the hallmarks of a modern country, where freedom is enhanced by civic responsibility and where institutions are strong.

Yet, much remains to be done. The government shall continue to pursue reforms to sustain the gains achieved, weed out corruption, strengthen the justice system and unite all segments of society to work hand-in-hand to attain the vision of the Philippines on the threshold of first-world status in 20 years.

[TOP]