NEDAs Economic and Social Report on North Luzon

Romulo L. Neri
Secretary of Socioeconomic Planning

Joint RDC-Cabinet Meeting 16 June 2006 Cauayan, Isabela

OUTLINE
Part I: Part II: Part III: General Description Socioeconomic Situationer Development Themes
1. Maximizing Proximity with Taiwan and China 2. Harnessing the Potentials of its Watersheds/Riverbasins 3. Gearing up as Food Basket of Luzon and Metro Manila through Agriculture and Mariculture Development 4. Pursuing Sustainable Minerals Development 5. Enhancing the Investment Climate 6. Addressing Basic Social Development Concerns 7. Strengthening Infrastructure Support

Part I: GENERAL DESCRIPTION

NORTH LUZON: GENERAL DESCRIPTION

Provinces: 17
Abra, Apayao, Aurora, Batanes, Benguet, Cagayan, Ifugao, Ilocos Norte, Ilocos Sur, Isabela, Kalinga, La Union, Mt. Province, Nueva Ecija, Nueva Vizcaya, Pangasinan, Quirino
BATANES Basco

ILOCOS NORTE

Laoag City

APAYAO Kabugao CAGAYAN

Cities: 18 Alaminos, Baguio, Cabanatuan, Calasiao, Candon, Cauayan, Dagupan, Gapan, Laoag, Munoz, Palayan, San Fernando, San Jose, Santiago, Tuguegarao, Urdaneta, Vigan, San Carlos Land Area North Luzon: 66,495 sq km. Philippines: 300,000 sq km. % North Luzon to Philippines: 22%

Bangued Vigan City

Tuguegarao City

ABRA ILOCOS SUR

Tabuk

KALINGA
Ilagan

MT. PROVINCE Bontoc ISABELA

IFUGAO Lagawe LA UNION San Fernando City BENGUET Cabarroguis

Bayombong

NUEVA VIZCAYA QUIRINO

Lingayen

R
Baler

NUEVA ECIJA Palayan City

PANGA SINAN

AURORA

Major Physical Features

BATANES Basco

Uplands
Laoag City

ILOCOS NORTE

APAY AO
Kabugao

Temperate climate suitable for agricultural production Vast potentials for mineral development Boasts of historical, cultural and ecotourism sites ideal for high-technology manufacturing activities

CAGAY AN

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KALINGA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

ISABELA IFUGAO LA UNION

San Fernando City Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA QUIRINO

Lingayen

R
Baler

PANGA SINAN
O

NUEVA ECIJA

Palayan City

Major Physical Features

BATANES Basco

Lowlands Suitable for cultivating traditional high value tropical crops River basins of Ilocos, Cagayan Valley, Nueva Ecija are major rice producing areas Aquamarine potentials in Batanes islands and coastal areas along the west

Laoag City

ILOCOS NORTE

APAY AO
Kabugao

CAGAY AN

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KALINGA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

ISABELA IFUGAO LA UNION

San Fernando City Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA QUIRINO

Lingayen

R
Baler

PANGA SINAN
O

NUEVA ECIJA

Palayan City

Part II: SOCIO-ECONOMIC SITUATIONER

Population, 1990-2000
Millions
12 10 8 6 4 2 0 Region I Region II CAR Aurora & NE 1990 3,550,642 2,340,454 1,146,191 1,452,253 1995 3803890 2356035 1254838 1665448 2000 4,200,478 2,813,159 1,365,220 1,833,680

North Luzon Philippines

8,489,480 (14%) 60,697,994

10,212,537 (13 %) 76,498,735

Incidence of Poor Population (2000)

North Luzon
Abra Apayao Benguet Ifugao Kalinga Mountain Province Ilocos Norte Ilocos Sur Pangasinan 57.6% La Union 34.1% Batanes 18.8% Cagayan 64.1% Isabela 45.7% Nueva Vizcaya 57.1% Quirino 22.8% Nueva Ecija 35.2% Aurora 37.0% 38.4% 18.1% 27.0% 34.6% 22.2% 38.2% 32.7% 33.6%

Philippines: 33.0%

Human Development Index 2000

North Luzon
Abra Apayao Benguet Ifugao Kalinga Mt.Province Ilocos Norte Ilocos Sur Pangasinan 0.636 La Union 0.545 Batanes 0.646 Cagayan 0.461 Isabela 0.553 Nueva Vizcaya 0.570 Quirino 0.684 Nueva Ecija 0.638 Aurora 0.633 0.648 0.717 0.586 0.649 0.621 0.580 0.635 0.623

In the HDI Ranking,

Batanes ranked 5th, Ilocos Norte, 7th and Isabela, and 10th. Ifugao is in the bottom 10; ranked 74th of 79 provinces

Philippine HDI for 2000 is 0.656

Department of Education BASIC EDUCATION INFORMATION SYSTEM (Elementary Education) Selected Indicators (Elementary) SY 2002-2003
Cohort P a rti ci pa ti on Survival Rate Rate Completion Rate

Provinces
Abra Apayao Aurora Batanes Benguet Cagayan Ifugao Ilocos Norte Ilocos Sur Isabela Kalinga La Union M t . P rovinc e Nueva Ecija Nueva Vizcaya Pangasinan I, Lingayen Pangasinan II, Binalonan Quirino 87.31% 70.05% 89.71% 58.73% 78.90% 79.94% 91.34% 94.40% 79.20% 67.75% 84.16% 79.18% 82.98% 65.59% 85.90% 82.54% 84.16% 82.86% 84.73% 81.43% 87.70% 74.47% 80.06% 79.14% 83.88% 69.93% 85.34% 84.09% 77.95% 70.49% 88.34% 106.60% 81.10% 79.96% 82.67% 53.40% 69.36% 56.23% 78.13% 94.19% 67.45% 78.30% 60.77% 82.18% 81.62% 80.27% 72.76% 77.75% 68.67% 77.49% 69.06% 96.82% 78.14% 50.47%

Philippines
q q q

82.72%

62.0%

Participation Rate is the ratio between the enrolment in the school-age range to the total population of that age range. Cohort Survival Rate is the proportion of enrollees at the beginning grade or year who remain in the final grade or year at the end of the required number of years of study. Completion rate is the percentage of new entrants in a level of education who complete/finish the level in accordance with the required number of years of study.

Department of Education BASIC EDUCATION INFORMATION SYSTEM Selected Indicators (Elementary) SY 2002-2003

Cohort Completion Participation Survival Rate Rate Rate

Cities
Baguio City Dagupan City Laoag City San Carlos City Urdaneta City Tuguegarao City 76.12% 79.47% 68.29% 90.45% 84.02% 78.17% 75.36% 80.20% 84.68% 75.45% 75.45% 86.01% 68.97% 77.86% 84.38% 73.89% 82.35% 83.92%

q Batanes, in spite of its isolation, registered a high Participation Rate, Cohort Survival Rate and Completion Rate. q Participation Rate for elementary at the national level was at a high 82.72%. However, the Completion Rate for that school year was only 62%. Almost all cities and provinces surpassed the national Completion Rate.

Department of Education BASIC EDUCATION INFORMATION SYSTEM Selected Indicators (Secondary) SY 2002-2003
Cohort P a rti ci pa ti on Survival Rate Rate Completion Rate

Provinces
Abra Apayao Aurora Batanes Benguet Cagayan Ifugao Iloc os Nort e Iloc os S ur Isabela Kalinga La Union Mt . P rovinc e Nueva Ecija Nueva Vizcaya Pangasinan I, Lingayen Pangasinan II, Binalonan Quirino 40.73% 36.85% 46.31% 62.12% 34.67% 44.73% 31.45% 50.47% 46.41% 48.31% 34.74% 48.94% 43.91% 54.49% 39.18% 61.43% 58.45% 41.81% 55.54% 74.39% 62.35% 83.64% 67.64% 70.60% 62.82% 70.89% 69.24% 56.57% 65.92% 73.01% 58.05% 63.40% 54.24% 82.87% 73.77% 75.88% 51.77% 70.34% 57.46% 82.30% 64.82% 67.84% 58.36% 69.63% 65.34% 53.51% 60.21% 66.57% 53.93% 55.53% 50.39% 72.81% 69.93% 71.00%

q Participation Rate for education at the secondary level tends to be lower relative to the elementary level. q Participation Rates for distant and remote areas such as the Ifugao, Kalinga, and Mountain Province are relatively lower.

Department of Education BASIC EDUCATION INFORMATION SYSTEM Selected Indicators (Secondary) SY 2002-2003

Cohort Participation Survival Rate Rate

Completion Rate

Cities
Baguio City Dagupan City San Carlos City Urdaneta City Tuguegarao City Laoag City 60.52% 47.57% 52.13% 71.44% 68.27% 69.47% 374.47% 75.95% 68.10% 76.91% 81.70% 75.55% 347.02% 57.52% 64.32% 76.15% 76.34% 72.58%

q Participation Rate for education at the secondary level is higher in cities than it is in provinces. Baguio City, the education capital of the North, registered a very high Cohort Survival rate and Completion Rate. q Participation Rate for secondary education at the national level was a low 47.03%. The national Completion Rate for that school year settled at 56.07

Infant Mortality Rate By Region

(Infants under one year of age per 1,000 live births)

Region CAR 1 2 Philippines

1990 63 56 62 57

1992 60 52 58 54

1994 57 48 55 50

1998 43 42 37 36

2003 14 29 28 30

Housing Needs 2005

Housing Need Philippines North Luzon 195,133 49,246* 25% % Share

*does not include Nueva Ecija and Aurora

NORTH LUZON ESTIMATED GDP AND SECTORAL SHARES

2003 AND 2004 (At Constant 1985 Prices)

2003
21%

2004
22%

17%

62%

18%

60%

GDP: 99 bilion

GDP: 104 billion

AFF Industry Services

NORTH LUZON ESTIMATED GDP

2003 AND 2004 (At Constant 1985 Prices) Unit: In Thousand Pesos

1200000000 1000000000 800000000 600000000 400000000 200000000 0 2003 North Luzon Philippines 2004

9.26% share

9.20% share

GRDP Gr. Rate 2003-2004

North Luzon: 5.31% Philippines : 6.10%

NORTH LUZON ESTIMATED GVA IN AGRICULTURE, FISHERY AND FORESTRY

2003 AND 2004 (At Constant 1985 Prices) Unit: In Thousand Pesos

250000000 200000000 150000000 100000000 50000000 0 2003 North Luzon Philippines 2004

17.90% share

18.32% share

GVA AFF Gr. Rate 2003-2004

North Luzon: 7.60% Philippines : 5.10%

NORTH LUZON ESTIMATED GVA IN INDUSTRY

2003 AND 2004 (At Constant 1985 Prices) Unit: In Thousand Pesos

400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 2003 North Luzon Philippines 2004

7.74% share

7.65% share

GVA Industry Gr. Rate 2003-2004

North Luzon: 3.94% Philippines : 5.20%

NORTH LUZON ESTIMATED GVA IN SERVICES

2003 AND 2004 (At Constant 1985 Prices) Unit: In Thousand Pesos

600000000 500000000 400000000 300000000 200000000 100000000 0 2003 North Luzon Philippines 2004

6.93% share

6.82% share

GVA Service Gr. Rate 2003-2004

North Luzon: 5.43% Philippines : 7.10%

Part III: DEVELOPMENT THEMES

Maximize Proximity to China and Taiwan

Strategically located Easy access through the Laoag International Airport

Maximize Proximity to China and Taiwan

Tourist Destinations
Basco

BATANES

North Luzon
Pagudpud-Bangui Eco-Tourism Complex Laoag-Paoay Tourism Circuit
Laoag City

ILOCOS NORTE

APAY AO
Kabugao

Callao Caves Tourism Zone

CAGAY AN

Sagada Mummies Ifugao Rice Terraces

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KALINGA

Vigan Heritage Village

ILOCOS SUR LA UNION
San Fernando City

MT. PROVINCE
Bontoc

Ilagan

ISABELA IFUGAO
Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

Camp John Hay

Lingayen

NUEVA VIZCAYA
A

QUIRINO
R
Baler

Kasibu & Alayan Caves Tourism Cone Dalton Pass Tourism Dev't Complex

PANGA SINAN
O

NUEVA ECIJA

Palayan City

Hundred Islands National Park

Maximize Proximity to China and Taiwan

BATANES
Basco

Industrial Locations
North Luzon
Ilocos Norte Provincial Agri-Industrial Center
Laoag City

Cagayan Special Economic and Freeport Zone

ILOCOS NORTE

APAY AO
Kabugao

Proposed Salomague SEZ

Vigan City Bangued

CAGAY AN

Tuguegarao City Tabuk

ABRA KALINGA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

ISABELA

Cauayan Regional AgriIndustrial Growth Center

Poro Point SEZ Baguio Export Processing Zone

Lingayen

IFUGAO LA UNION
San Fernando City Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA
A
R
Baler

QUIRINO

PANGA SINAN

Proposed Sual Industrial Estate Development

NUEVA ECIJA
Palayan City

Harnessing the Potentials of its Watersheds/Riverbasins

Laoag City

Bulu River Watershed

ILOCOS NORTE A PA Y A O
Kabugao

C A GA YA N

Apayao-abulog Watershed Chico Watershed Siffu-Mallig Watershed Magat Watershed

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA K A LIN GA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

Baroro River Watershed Aringay Watershed

Lingayen

ISAB ELA IFUGAO LA UNION

San Fernando Cit y Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA
A

QUIRINO
R
Baler

Casecnan Watershed Amburayan Watershed Bued Watershed

PANGA SINAN

Balincaguin River Watershed Toboy-Tacnen River Watershed

NUEVA ECIJA

Palayan City

Harnessing the Potentials of its Watersheds/Riverbasins Premier watershed cradle of the Philippines Watersheds constitute 31 percent of the total drainage area of major riverbasins Potential for hydroelectric power and irrigation Challenges
Deforestation Siltation Flooding

Harnessing the Potentials of its Watersheds/Riverbasins

Key Programs/Activities
Flood Mitigation in Cagayan Valley Strengthening Conservation Efforts and Land Use on the Northern Sierra Madre Corridor through the Regional Geographic information Network (RGIN) Comprehensive Forest Protection and Fire Management Establishment of Hydrometeorological station for the Evaluation of Soil and Water Conservation Rehabilitation of Mt. Sto. Tomas Rain Basin

Gearing up as Food Basket of Luzon and Metro Manila through Agribusiness, Agriculture and Mariculture Development
4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

North Luzon

Average Annual Agricultural Production

CAR Region 1 Region 2 Aurora and Nueva Ecija

Palay

Corn

Livestock and Poultry

Fishery

North Luzon Palay Corn Livestock and Poultry Fishery 3,752,922 MT 1,150,265 369,099 105,487

% Share to Phil. 33% 26% 12% 4%

Gearing up as Food Basket of Luzon and Metro Manila through Agriculture and Mariculture Development

Challenges Inadequate post-harvest facilities for rice and corn particularly in Region II lack of flood control structures in flood prone areas along the Cagayan River and its tributaries Lack of processing facilities, high price of production inputs, and low price of corn during post harvest season. Entry of imported vegetables and cutflowers

Gearing up as Food Basket of Luzon and Metro Manila through Agriculture and Mariculture Development

Proposed Interventions LGU investments in post harvest facilities Crop diversification

Gearing up as Food Basket of Luzon and Metro Manila through Agriculture and Mariculture Development

Marine and aquaculture Wide expanse of marine and fishery area Vast potentials for mariculture, particularly for oyster, mussels and seaweeds Mariculture zones are located in Badoc and Pagudpud (Ilocos Norte); Balaoan and Sto. Tomas (La Union); and Dasol and Anda (Pangasinan).

Tap SUCs and Colleges in Promoting Agricultural Development and Productivity

Research and development (e.g., highland vegetable farming and forest plantation in Benguet State University; aquaculture and fisheries in development Central Luzon State University; silkworm culture in Don Mariano Marcos State University;) Establishment of demonstration farms (giant bamboo and mushroom production center in Isabela) Facilitate the dissemination and adoption of technology (livestock development for sheep, carabao, poultry and small ruminants in Region II)

Pursuing Responsible Minerals Development

19.6%

Northern Luzon Philippines

80.4%

Pursuing Responsible Minerals Development

BATANES
Basco

Lepanto Consolidated (gold) Bacnotan Cement Corp. (limestone) Philex Mines Sto. Tomas (copper)

Laoag City

ILOCOS NORTE

A PA YAO
Kabugao

C A GA YA N

Climax Arimco Corp. (copper)

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KALINGA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

ISAB ELA IFUGAO LA UNION

San Fernando City Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA
A

QUIRINO
Lingayen

R
Baler

P A N GA SIN A N

NUEVA ECIJA

Palayan City

Source: NFPP 2001-2030

A

Pursuing Responsible Minerals Development

Mining Issues/Gaps Abandoned and unrehabilitated mining sites Applications in conflict with other land uses and land classification

Pursuing Responsible Minerals Development

Mining Programs/Projects Promotion of sustainable large and small scale mining Minerals industry development Rehabilitation of degraded mining areas Enforce existing relevant laws and regulations

Enhancing the Investment Climate

Increasing Productivity Reducing Costs Minimizing Risks

Enhancing the Investment Climate

Increasing Productivity Improving Access to Information and Communication Facilities Promote investments that support the provision of physical infrastructure for high speed connectivity, high capacity, and secured network services at low cost Provide additional telecom infrastructure to support business communications Promote VOIP or internet telephony

Enhancing the Investment Climate

Increasing Productivity Rationalization of North Luzons Digital Infrastructure Convergence of telecommunication, IP technology, broadcast media, cable TV, and other technologies to realize the full potential of ICT as a tool for knowledge creation and diffusion Use ICT to locate market and suppliers, business partners, and access technologies

Enhancing the Investment Climate

Reducing Costs Reducing cost of transporting goods Streamline and simplify frontline services through one-stop shops in LGUs and national government agencies

Enhancing the Investment Climate

Minimizing Risks Promotion of Peace and Order

Addressing Basic Social Development Concerns

Address declining participation rates in high school education, particularly in remote areas such as Mt. Province, Ifugao, Kalinga. Address housing backlog through affordable loan packages Continue to provide adequate health care through affordable medicines and assistance in the prevention of diseases Mobilize local resources, networks to facilitate implementation of national government projects

7
Strengthening Infrastructure Support

Existing Inter-regional Roads

Existing Inter-regional Roads

Cabugao-Calanasan-Claveria Road Cabugao-Pudtol-Luna Abulog Road Ilocos Norte-Kalinga-Apayao Road Ilocos Norte-Abra-Ilocos Sur Road Narvacan-Bangued-Balbatan-Lubuagan-TabukTuguegarao Road Tagudin-Cervantes-Manacayan-Abatan Road Sta. Fe-San Nicolas Road Ilocos Norte-Abra-Ilocos Sur Road Baguio-Aritao Road Tagudin-Cervantes-Suyo-Manacayan Road

BATANES
Basco

Basco Airport

Existing Air Transport

Laoag Intl Airport
Laoag City

Sta. Ana Airport

A PA YAO
Kabugao

ILOCOS NORTE

C AGAYAN

Vigan Airport
Vigan City Bangued

Tuguegarao Airport
Tuguegarao City Tabuk

ABRA KALINGA
Ilagan

ILOCOS SUR

MT. PROVINCE
Bontoc

ISAB ELA IFUGAO LA UNION

San Fernando City Lagawe

Caoayan Airport

BENGUET
La Trinidad

Bagabag Airport
Bayombong Cabarroguis

San Fernando, Airport

NUEVA VIZCAYA

Lingayen Airport
Lingayen

R
Baler

PA N GA SINA N
O

Baler Airport

NUEVA ECIJA

Palayan City

QUIRINO

BATANES

Existing Sea Transport

Abulug Port Claveria Port Ballesteros

Basco

Aparri Seaport Buguey Port Port Irene

Currimao Port

Laoag City

ILOCOS NORTE

APAYAO
Kabugao

Salomague Port

CAGAYAN

Vigan City

Bangued

Tuguegarao City

ABRA
Tabuk

Divilacan Seaport
K A LIN GA
Ilagan

Palanan Seaport

ILOCOS SUR

MT. PROVINCE
Bontoc

ISABELA IFUGAO

San Fernando Seaport

LA UNION
San Fernando City

Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

Sual Seaport

Dinapigue Seaport

NUEVA VIZCAYA
A

QUIRINO
Lingayen

R
Baler

PANGA SINAN
O

NUEVA ECIJA

Palayan City

BATANES
Basco

Power and Energy

Bangui Wind Power Farm
Laoag City

ILOCOS NORTE

APA YAO
Kabugao

C AGAYA N

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KALINGA

Ambuklao Hydro Electric Plant

ILOCOS SUR MT. PROVINCE
Bontoc

Ilagan

Bakun Hydro Electric Plant

IFUGAO
Lagawe

ISA B EL A LA UNION
San Fernando City

Binga Hydro Electric Power Plant

BENGUET
La Trinidad Bayombong Cabarroguis

Bauang Power Plant Corporation

NUEVA VIZCAYA
A

QUIRINO
Lingayen

R
Baler

PA NGA SIN AN

Sual Coal Plant

NUEVA ECIJA
R

San Roque Multi-purpose Dam

Palayan City

Magat Hydro Electric Plant

U
A

BATANES
Basco

Existing Irrigation Projects

Laoag City

Chico River Pump Irrigation Project

ILOCOS NORTE

APAYAO
Kabugao

C A G A YA N

Baggao Irrigation System

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA KA LINGA
Ilagan

Tumauini River Irrigation Project

ILOCOS SUR

MT. PROVINCE
Bontoc

ISABELA IFUGAO LA UNION

San Fernando City Lagawe

Addalam River Irrigation Project

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA
A

Magat River Irrigation Project

QUIRINO
Lingayen

R
Baler

PA NGA SIN AN
O

Matuno River Irrigation Project

NUEVA ECIJA

Palayan City

Flood Control
Laoag City Urban Drainage System Improvement Project

BATANES
Basco

Sabo Flood Control Project in the Laoag River Basin

Laoag City

ILOCOS NORTE

A PA YAO
Kabugao

Cagayan River Flood Control Project

Abra Ilocos Sur River Basin Flood Control Project

C AGAYAN

Vigan City

Bangued

Tuguegarao City Tabuk

ABRA

Sewerage and Drainage systems projects for metro Dagupan, La Union and Vigan Area

KALINGA
Ilagan

SRMP Component Region I

ILOCOS SUR

MT. PROVINCE
Bontoc

ISAB ELA IFUGAO LA UNION

San Fernando City Lagawe

BENGUET
La Trinidad Bayombong Cabarroguis

NUEVA VIZCAYA
A

QUIRINO
Lingayen

R
Baler

PA N GA SINA N

Sinukalan River Improvement Works

NUEVA ECIJA
R

Agno and Allied Rivers Flood Control

Palayan City