NEDAs Economic and Social Report on

Secretary of Socioeconomic Planning Joint RDC-Cabinet Meeting 08 July 2006

Romulo L. Neri

Outline of Presentation
Part I Part II : : Physical and Socioeconomic Situation Strategic Themes 1. Realizing Mindanao s agribusiness and aquaculture/mariculture potentials 2. Establishing an efficient food logistics system linking Mindanao to Manila 3. Improving image to attract more investments, trade and tourism 4. Pursuing responsible mineral development 5. Uplifting social development conditions 6. Catch-up plan for ARMM 7. Building on strong partnerships

Land Area 106,378 sq. km. or 35 % of Philippines Political Subdivisions

25 provinces 27 cities 411 municipalities 10,044 barangays

Population, 1990 and 2000

AREA Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Philippines 1990 000) 60,703 14,021 2,275 2,812 2,932 2,400 1,764 1,838 46,682 2000 000) 76,504 18,162 2,825 3,506 3,676 3,222 2,095 2,838 58,342 GROWTH RATE 2.4 2.6 2.3 2.2 2.3 3.0 1.7 4.4 2.2

Mindanao shares around 24 percent of the total population

Source: National Data from 2005 Philippine Yearbook, Regional Data from RPFPs

Land Use Map, 2002

Source: Mindanao Business Council, 2002

Growth Centers of Mindanao

Western and Southern Coast Fishery and Mariculture Center

Major Transshipment Hub

Caraga Agroforestry and mineral center

Agri-industrial Core

Davao Urban and AgriIndustrial Center

Part I Physical and Socioeconomic Situation

Comparative Frequency of Cyclones

Philippines Northeastern Mindanao Rest of Mindanao 15 per year 1 cyclone per year 1 cyclone in 12 years

Mindanao is largely a typhoon-free area.

GRDP, 2003 & 2004

Level and Growth Rate at Constant Prices (1985=100)

AREA Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Philippines
Source: NSCB

In Billion Pesos 2003 2004 1,081 1,146 194 206 29 30 53 56 49 53 39 41 15 15 10 10 887 940

Real Growth 6.0 6.0 4.7 6.0 6.9 6.3 5.5 5.3 6.0

Rest of the Phils 82%

Mindanao Share to GDP

Mindanao 18%

GRDP Sector Distribution, 2004

at Constant Prices (1985=100)
AREA Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Phils Percent Share Agriculture Industry Services 19 34 47 36 27 37 50 15 35 30 31 39 27 31 42 43 30 27 30 28 42 55 12 33 18 42 40

LFPR, Unemployment Rate and Underemployment Rate

January 2006
AREA Total Persons in the Labor Force Labor Force Participation Rate Unemployment Rate Underemployment Rate

Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Phils
Source: NSCB

35,224 8,514 1,307 1,861 1,791 1,591 1,025 939 26,711

63.8 65.4 62.8 72.2 66.2 65.5 66.3 55.9 63.3

8.1 5.4 3.7 5.1 7.4 5.9 6.1 3.3 8.9

21.3 26.0 25.0 36.5 21.5 29.7 23.8 11.8 19.7

Poverty Situation: Family

Poverty Incidence Among Families (%) 2000 PHILIPPINES Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Philippines
Source: NSCB

Magnitude of Poor Families (In Thousand) 2000 4,147 1,373 210 262 202 264 179 256 2,774 2003 4,023 1,420 258 279 231 227 196 229 2,603 Inc/ Dec (%) (3) 3.4 23.2 6.5 14.3 (14.1) 9.1 (10.5) (6.2)

AREA

2003 24.4 39.1 44 37.7 28.5 32.1 47.1 45.4 24.8

27.5 40.5 38.6 38 27.9 40.7 43.8 53.8 28.3

Human Development Index (HDI)

Mindanao Area, 2003
National Rank
PHILIPPINES Metro Manila 13 17 18 27 28 30 31 32 35 36 46 Misamis Oriental South Cotabato Davao del Sur Camiguin Bukidnon North Cotabato Davao del Norte Agusan del Norte Zamboanga del Sur Lanao del Norte Misamis Occidental

Province

HDI
0.72 0.78 0.65 0.64 0.63 0.58 0.57 0.57 0.56 0.56 0.56 0.56 0.54

National Rank
53 58 59 61 65 68 71 72 74 75 76 77

Province
Surigao del Norte Davao Oriental Sultan Kudarat Agusan del Sur Surigao del Sur Lanao del Sur Sarangani Zamboanga del Norte Basilan Tawi-Tawi Maguindanao Sulu

HDI
0.52 0.50 0.50 0.49 0.49 0.48 0.45 0.45 0.41 0.36 0.36 0.30

Note: The HDI is a summary measure of human development. It measures the average achievement in a country in three basic dimensions of human development, namely, Longevity as measured by life expectancy at birth; Knowledge, as measured by basic enrollment ratio; Standard of living, as measured by real income per capita (Philippine Human Development Report 2005, UNDP). Source: Human Development Report 2005 (UNDP-HDN)

Literacy, Participation and Cohort Survival Rates

AREA Philippines MINDANAO* Region IX Region X Region XI Region XII Caraga Region ARMM
Participation Rate

Literacy Rate (2003) Basic 93.4 86.8 88.9 91.8 90.3 87.3 92.1 70.2 Functional 84.1 76.2 74.8 83.7 77.8 77.1 81.0 62.9

Participation Rate (2003-2004) Elementary 80.3 81.1 82.7 82.5 79.4 76.9 76.1 89.1 Secondary 45.7 39.7 42.1 40.3 43.8 43.5 41.9 26.7

Cohort Survival Rate (2002-2003) Elementary 69.5 60.2 61.1 67.1 69.6 53.3 62.3 47.5 Secondary 63.9 61.7 62.3 56.9 56.9 61.9 65.5 66.6

the ration between the enrolment in the school-age range to the total population of that age range (NSO, 2004)

Basic Literacy - the ability to read and write with understanding simple message in any language or dialect (NSO, 2004) Functional Literacy - represents a significantly higher level literacy which includes not only reading and writing skills but also numeracy (NSO, 2004)
* Average of regional figures

Source of Data: Department of Education, MEDCO

Student-Teacher, Student-Room and Student-Seat Ratios

Teacher: Student Ratio
Elementary Secondary

Public Elementary and Secondary Schools, SY 2003-04

Room: Student Ratio
Elementary Secondary

AREA

Seat: Student Ratio

Elementary Secondary

PHILIPPINES Mindanao* Region IX Region X Region XI Region XII Caraga Region ARMM

1 : 36 1 : 37 1 : 34 1 : 36 1 : 38 1 : 39 1 : 34 1 : 40

1 : 42 1 : 44 1 : 40 1 : 43 1 : 42 1 : 45 1 : 44 1 : 53

1 : 38 1 : 39 1 : 36 1 : 37 1 : 39 1 : 41 1 : 34 1 : 48

1 : 61 1 : 62 1 : 59 1 : 62 1 : 67 1 : 64 1 : 60 1 : 60

1: 1.20 1 : 1.30 1 : 1.17 1 : 1.17 1 : 1.26 1 : 1.30 1 : 0.98 1 : 1.91

1 : 1.57 1 : 1.65 1 : 1.67 1 : 1.78 1 : 1.74 1 : 1.62 1 : 1.68 1 : 1.43

*average of regional figures Source: Department of Education

Student-Teacher Ratio

Public and Private Elementary and Secondary Schools SY 2001-2002

Both Public and Private Schools AREA Elementary Philippines Mindanao* Region IX Region X Region XI Region XII Caraga Region ARMM *average of regional figures
Planning Standard :

Public Only Schools Elementary 1 : 36 1 : 37 1 : 34 1 : 37 1 : 39 1 : 38 1 : 35 1 : 36 Secondary 1 : 40 1 : 41 1: 1: 1: 1: 1: 1: 38 40 41 42 42 42

Secondary 1 : 38 1 : 40 1: 1: 1: 1: 1: 1: 38 40 41 40 40 42

1 : 35 1 : 36 1: 1: 1: 1: 1: 1: 34 37 39 37 34 36
1 : 40

Teacher : Student

Source: Department of Education, Research and Statistics Division

Crude Birth and Death Rates, % HH with Sanitary Toilets, and % with Access to Safe Water, 2003
AREA Crude Birth Rate (CBR) Crude Death Rate (CDR) With W/ Sanitary Access to Toilet (%) Safe Water (%)

Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM

25.2 21.2 21.5 21.0 19.0 19.9 18.3 27.4

5.8 4.4 3.4 3.6 3.3 3.0 3.6 9.5

86.0* 71.9 76.5 79.1 74.8 75.4 79.6 45.8

80.0* 85.3 88.3 87.1 85.0 87.7 84.0 79.7

CBR Crude Birth Rate refers to the number of live births per 1,000 population in a given year. CDR Crude Death Rate refers to the number of deaths per 1,000 population. * Data on households with sanitary toilet and households with access to safe water supply is for year 2002 taken from the Second Philippines Progress Report on the MDGs. Source: Mindanao - Department of Health Central Office and Mindanao Health Development Office (Prepared by MEDCO Secretariat); Data for Phils NSCB Website, MDG report

Ratio of Medical Personnel to Population, 2003

AREA Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM
Planning standards Doctor Dentist Nurse Midwife

Doctors 1 : 26,317 1 : 39,165 1 : 33,838 1 : 29,232 1 : 69,681 1 : 33,164 1 : 24,973 1 : 32,734

Dentist 1 : 42,493 1 : 65,431 1 : 55,371 1 : 40,761 1 : 77,532 1 : 87,054 1 : 38,094 1 : 98,201

Nurses 1 : 16,844 1 : 20,534 1 : 15,538 1 : 15,312 1 : 34,191 1 : 17,631 1 : 19,210 1 : 22,814

Midwives 1 : 4,808 1 : 4,980 1 : 4,512 1 : 3,604 1 : 6,959 1 : 4,152 1 : 3,320 1 : 6,088

1 : 20,000 1 : 30,000 1 : 20,000 1: 5,000 (accessible area), 1: 3,000 (hard to reach area)

Source: Department of Health Website , NEDA Caraga Region

No. of Hospitals and Beds, Population-Hospital Bed Ratio, 2003

AREA Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM
Note : Planning standard for Population

No. of Hospitals 1,719 444 65 95 111 95 60 18

No. of Hospital Beds 84,761 15,005 2,568 3,611 3,474 3,007 1,722 623

Population Hospital Bed Ratio* 957:1 1,310:1 1,174:1 1,073:1 1,133:1 1,171:1 1,281:1 5,189:1

Hospital Bed Ratio

500 population : 1 hospital bed

* Computed by NEDA-X using projected regional population for 2003 Source Hospital and hospital bed data: Department of Health, Center for Health Development Data

Total Housing Needs, 2005

AREA Philippines Mindanao No. of Housing Units 597,362 136,250 % Share to Total 100.0 22.8 % Share to Mindanao Region IX Region X Region XI Region XII Caraga ARMM
Source: HUDCC

21,824 18,880 41,922 18,033 12,791 22,800

16.0 13.9 30.8 13.2 9.4 16.7

About 23% of the national housing backlog is in Mindanao

Status of Electrification
(As of 30 April 2006)
AREA Energized Barangays Unenergized Barangays Total Target Barangays % Energized

Philippines Mindanao Region IX Region X Region XI Region XII Caraga ARMM

33,579 8,149 1,562 1,722 839 938 1,260 1,828

2,451 1,409 303 119 55 93 50 789

36,030 9,558 1,865 1,841 894 1,031 1,310 2,617 37,427

93.2 85.3 83.8 93.5 93.8 91.0 96.2 69.9 67.9

Rest of the Phils 25,430 1,042 Source: National Electrification Administration

Legend Unenergized barangays

Source: National Electrification Administration Based on the NSCB Resolution No. 1 Series of 2005 on the "Adoption of Methodology Used in Generating the 2005 Census of Population and Housing-Based National Population Projections

Part II Strategic Themes

Make Mindanao the country s main agri-fishery export zone

For Agribusiness Fruit/vegetable production and processing zone Feed milling Animal production Meat processing Snack food production Coconut production and processing Ornamental horticulture Industrial tree plantation (oil palm, rubber) For Fisheries Aquaculture Fish processing/canning Crab production Prawn production Seaweed farming and processing

Source: MTPDP

Major Crops of Mindanao

2003 Production (In 000 MT)
Major Crops Rubber Cacao Pineapple Banana Coffee Cassava Corn Coconut % Share of Philippines Mindanao Mindanao 268.3 5.6 1,696.3 5,369.0 106.4 1,622.1 4,615.6 14,059.0 268.2 5.0 1,477.3 3,994.7 75.8 1,139.6 2,826.0 8,101.5 99.9 88.8 87.0 74.4 71.2 70.2 61.2 57.6 Top Performing Region per Crop (percentage indicates share to Philippines)
Region 9 (54.4%) Region 11 (67.4%) Region 10 (49.5%) Region 11(40.0%) Region 11(31.2%) ARMM (82.5%) Region 12 (18.8%) Region 11 (17.8%)

Source of Raw Data: Bureau of Agricultural Statistics (BAS)

Oil Palm and Rubber Plantations

Oil Palm (Agusan Del Sur) (Agusan del Sur)
Rubber Plantations (Zamboanga Plantations Sibugay) Oil Palm

Rubber (Zamboanga Del Sur)

Rubber Plantation (Isabela City)

Oil Palm (Lanao del Sur)

Rubber Plantation (Isabela, Basilan)

Oil Palm (Sultan Kudarat) Rubber Plantation (Cotabato Province)

Banana Plantations
AMS Farming Soriano Fruits Unifrutti

Davao Fruits Twin Rivers

Tagum Agri-Dev. Corp. Lapanday Dapco Stanfilco Hijo Plantations United Brand Marsman Estates Del Monte Diamond Fruits Guihing Nova Vista

Pineapple Plantations
Bukidnon: Dole Del Monte Lapanday Unifrutti

Dole (Polomoloc)

Exotic Fruits in Mindanao Lanzones Marang Mangosteen Durian Rambutan Pomelo

Major Agricultural Exports

(In Million $)
Product Coconut Oil, Crude/Refined Banana, Fresh/Chips Tuna, Fresh/Chilled Pineapple, Fresh/Preserved Pineapple Juice Concentrates Oil-Cake and other Residues Rubber, in Primary Form Dessicated Coconut
Source of Raw Data: National Statistics Office (NSO) Note: Value based on Freight on Board (FOB)

2003 373 344 132 112 43 33 24 20

2004 394 338 134 121 43 26 16 35

Growth Rate (%) 5.5 (1.7) 1.7 7.7 (1.7) (22.2) (35.9) 75.6

Jan - Jun 2005 403 227 27 59 20 20 10 24

Fishery Resources
Contributes 42 percent of the total fishery production Center of Tuna Industry Center of Sardines Industry Major producer of Carageenan

Volume of Fisheries Production, 2003

(In Thousand Metric tons)
AREA Philippines Mindanao Share of Mindanao to Phils Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Philippines
Source of Raw Data: Bureau of Agricultural Statistics

Total Production 3,619 1,509 41.7% 459 101 54 242 94 559 2,111

Commercial 1,110 527 47.5% 212 40 12 179 5 80 582

Municipal 1,055 371 35.2% 126 30 30 40 66 79 685

Aquaculture 1,455 610 42.0% 121 31 12 23 23 401 845

Aquaculture Production, 2003 (In Thousand Metric tons)

AREA Brackishwater Freshwater Marine Waters Mariculture Fishpond Fishcage Fishpen Fishpond Fishcage Fishpen Fishpond Fishcage Total Aquaculture Production

Philippines MINDANAO % share to Phils Region IX Region X Region XI Region XII Caraga Region ARMM Rest of the Philippines

245.0 52.6 21% 19.2 11.8 7.5 7.8 3.8 2.5 192.4

5.4 1.7 31% 0.0 0.0 0.0 0.0 1.7 0.0 3.7

4.4 0.0 0% 0.0 0.0 0.0 0.0 0.0 0.0 4.4

72.0 2.9 4% 0.1 0.6 0.6 1.3 0.2 0.2 69.1

52.8 5.9 11% 0.0 0.0 0.0 5.6 0.2 0.1 46.9

35.9 7.7 22% 0.0 0.0 0.0 7.7 0.0 0.0 28.2

12.1 1.9 16% 0.0 0.0 1.2 0.6 0.0 0.0 10.2

10.1 1.3 13% 0.0 0.0 1.2 0.0 0.0 0.0 8.8

1,016.9 536.2 53% 101.7 18.9 1.1 0.0 16.7 397.8 480.7

1,454.5 610.2 42% 121.0 31.4 11.6 23.0 22.6 400.6 844.3

Source of Raw Data: Bureau of Agricultural Statistics

Marine and Fishery Areas

Panguil Bay Butuan Bay Gingoog Bay Sibuguey Bay Illana Bay Sarangani Bay Lianga Bay Murciellagos Bay Sulu Sea Davao Gulf Moro Gulf Lake Lanao Lake Buluan Lake Mainit Lake Pinamaloy
Major sources of seaweeds Lanao del Norte, Sulu and Tawi-Tawi

Aquaculture Products with High Potentials

Marine Groupers (Lapu-lapu) Seabass (Apahap) Eels (Kasili) Mussels (Tahong) Oysters (Talaba)
Sea Urchin (Tuyom)

Aquaculture Milkfish (Bangus) Carp (Tilapia) Prawns (Sugpo) Crab (Alimango) Catfish (Hito) Aquarium fish

Fishery Development Interventions

Supply international demand for fish products Regulate fishing in traditional areas Enhance police and patrol in the Exclusive Economic Zone (EEZ) Improve facilities in existing regional and municipal ports Acquire modern equipment for local commercial fishing fleet to fish in far-flung, deep sea areas

Fishery Development Interventions

Establish multi-species hatchery (bangus, groupers, seabass) in Bongao Tawi-Tawi to supplement other hatcheries operating in the country Implement massive seeding of Lake Lanao with fingerlings Distribute fishing paraphernalia such as hook and line, and gill nets Form fishermen s cooperative and buy bigger and better boats

Mariculture Development Interventions Establish seaweed nurseries Establish post-harvest equipment such as smokehouse and seaweed solar dryers Maintain mariculture park in the Island Garden City of Samal Pursue market-driven export promotion for marine products

Livestock Production, 2003 and 2004

(in Thousand Metric Tons, Live Weight)

Livestock Phils Carabao Cattle Chicken Goat Hog

Source: BAS

2003 Mindanao 49.0 83.2 216.0 29.6 483.9 Phils

2004 Mindanao 45.4 71.4 221.7 24.5 477.1

% Share (2004) 32.9 27.9 18.0 32.8 27.7

132.4 258.5 1,188.7 73.8 1,733.1

138.0 256.0 1,231.8 74.6 1,722.0

Agri-business Development Interventions

Enhance agricultural productivity thru: Intercropping in coconut plantations Additional LGU investments in post harvest facilities Completion of major irrigation projects such as Malitubog-Maridagao Irrigation Project Promotion in the use of hybrid rice and corn R and D by SUCs
Mindanao State University (MSU) Naawan and Sulu for mariculture development Central Mindanao University (CMU) for rice, corn and fruits University of Southern Mindanao (USM) for rubber, corn, fruits Northern Mindanao State Institute of Science and Technology (NORMISIST) for tissue culture of abaca and banana

Recent Agribusiness Investments

Seaweeds Industry
4 Processing plants in Mindanao 160 ha seaweed plantation 80% food grade carrageenan 93,000 MT in 2003

Coco-based Industries Oleo Chemicals

5 billion expansion by Filipinas Kao

Virgin Coconut oil Halal Poultry

Target Market: Middle East 15,400 MT per year or 1,284 MT per month Mindanao s Production Capacity Total Chicken Production: 212,456 MT (Annual Average)

Palm Oil Industry

Potential Areas: 304,350 Hectares Total Areas Planted: 21,232 Hectares

Mindanao Road Network, 2005 City Surigao

Region Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM Total Length (KM) 31,830 7,764 1,068 1,604 1,439 1,301 1,357 995
ZAM BOAN GA DEL NORTE

SUR IGA O DEL N ORTE

S URIGAO DE L NOR TE

Roads network is vital to link key agricultural areas with markets.

Cagayan de Oro City
MIS AMIS OC CID ENTAL

SU RIGAO D EL NORTE SURIGA O D EL N ORTE

CA MIGU IN

AGUSAN DEL NORTE

Butuan City

A GU SAN DEL NORTESURIGAO D EL SUR

MISAMIS ORIENTA L

AGUSAN DEL SUR BU KIDN ON

LA NA O D EL N ORTE LANA O DEL SUR

ZA MBOA NGA SIBU GA Y ZA MBOANGA D EL SU R

D AVAO D EL N OR TE COMPOSTELA VALLEY

CotabatoOA NGA SIB UGAY City ZAMB

ZA MB OA NGA D EL SU R

MAGU IN DA NA O

C OTA BA TO

Davao City
DA VAO DEL NOR TE DA VAO OR IE NTAL

Total road length of Mindanao is 24% of national.

SULU

Zamboanga City
B ASILAN

MAGUIN DA NA O

SULTAN KUDARAT D AVAO DEL S UR S OU TH COTAB ATO

SULU SULU
L e gen d

SAR ANGA NI

SAR AN GA NI

Gen. Santos City

North-South Backbone - covers interconnection of primary centers and road leading to growth corridors. East-West Laterals - interlink North-South in east-west orientation. Strategic Roads - includes circumferential and cross-island roads. Secondary National Roads all other roads not classified as arterial roads.

SULU

N at io n al R o a d N etw o rk N or th -S ou t h B a c k bo n e E a s t -W es t L a t er al

TAWI-TAWI

O t h er R o a d o f S t r a t e gi c I m p o rt a nc e S e c o n da ry N a t io n a l R o ad

Condition of Mindanao Roads

(National Roads, 2005)
Region Philippines Mindanao Region IX Region X Region XI Region XII Caraga ARMM
Source: DPWH
MI SA MI S OCC IDEN TA L A GUSA N DEL SUR S URI GA O DE L NORTE

Asphalt Concrete 25% 19% 28% 26% 16% 19% 5% 2% 45% 45% 45% 46% 45% 43% 45% 59%

Earth 0.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1%

Gravel 30% 37% 27% 28% 39% 38% 50% 38%

Total Length (KM) 31,830.5 6,769.1 1,068.2 1,604.0 1,439.1 1,300.9 1,356.9 994.6
C AM IG UI N

S UR IGA O DE L NOR TE

S U RIGAO DE L NORTE SURIG AO DE L NORTE

A GUSA N D EL N ORTE

AGUS AN DE L NORTE M IS AM IS ORI ENTA L

SUR IGA O DE L SUR

About 37 percent of the roads in Mindanao are gravel. Only 64 percent of roads are paved.

ZA MBOA NG A DE L NOR TE ZA MB OANGA S IB UGAY ZAM BOA NGA DEL SU R

LANA O DE L NORTE

BU K IDNON

LA NAO DEL SUR

D AV AO DEL NORTE

C OM POS TE LA VALLEY

M AGU I NDA N AO Z AM BOA N GA SI BUGA Y COTA BA TO ZAM BOA N GA DEL SUR

L eg en d :
D AV AO OR IE N TAL DAV AO D EL NO RT E PA V E M E N T

T YP E

MA GUINDANA O

C o nc r et e As p ha lt G ra ve l

B AS ILA N

S ULT AN KU DARA T D AV AO DEL SUR

Ea r th C O N D IT I O N ( IR I) G oo d F a ir

Road conditions affect mobility and prices of agricultural products.

S ULU SU LU

SO UT H COTA BA TO

S AR A NG AN I

SA RANGA NI

P oo r / B a d

2. Establishing an Efficient Food Logistics System Linking Mindanao to Luzon and Visayas

Mindanao as source of food for Visayas, Central Luzon, Metro Manila and CALABARZON due to loss of agricultural lands coupled with increasing population Feeder roads to link with food production areas.

CAVITE

LAGUNA

CAMARINES NORTE

BATANGAS
BATANGAS CITY PORT

QUEZON CAMARINES SUR

> !

CATANDUANES

CALAPAN PORT

! MINDORO ORIENTAL

Central Nautical Highway

MARINDUQUE ALBAY MASBATE > ! SORSOGON ROMBLON ROMBLON ROMBLON MASBATE

CATAINGAN PORT CATICLAN PORT

MINDORO OCCIDENTAL

SOUTHERN MINDORO !
ROXAS PORT

> MASBATE ! NORTHERN SAMAR

> ! > ! BILIRAN BILIRAN

NAVAL PORT

> !

SAMAR EASTERN SAMAR

AKLAN

LEGEND : PORT
ANTIQUE

CAPIZ

LEYTE ILOILO

RORO capable
Proposed construction of additional RORO facilities

> !

ILOILO CITY PORT > !BACOLOD CITY PORT

GUIMARAS > ! NEGROS OCCIDENTAL > ! CEBU SOUTHERN LEYTE

LILOAN PORT SURIGAO

DEL NORTE

A.7 GUINSILIBAN-MAMBAJAO (MAAC-CATAAN SECT) 2005 (LOCAL) B.10 BUTUAN CITY-MISAMIS OR. RD (2008 2010)

SOUTHERN LEYTE > ! BOHOL

SURIGAO CITY PORT

SURIGAO DEL NORTE

Not RORO capable RORO Route ROAD Improved On-Going Project Proposed Project

JAGNA PORT
NEGROS ORIENTAL > !

SURIGAO DEL NORTE SURIGAO DEL NORTE

MAMBAJAO PORT
SIQUIJOR CAMIGUIN AGUSAN DEL NORTE

GUINSILIBAN PORT
DIPOLOG CITY PORT

BALINGOAN PORT

AGUSAN DEL NORTE SURIGAO DEL SUR

MISAMIS ORIENTAL

MISAMIS OCCIDENTAL

AGUSAN DEL SUR BUKIDNON

ZAMBOANGA DEL NORTE

LANAO DEL NORTE LANAO DEL SUR

ZAMBOANGA SIBUGAY ZAMBOANGA DEL SUR

DAVAO DEL NORTE COMPOSTELA VALLEY MAGUINDANAO ZAMBOANGA SIBUGAY ZAMBOANGA DEL SUR MAGUINDANAO DAVAO DEL NORTE COTABATO DAVAO DEL SUR DAVAO ORIENTAL

Comparative Rates: RORO vs Containerized Cargo (PhP/Kilo)

TRANSPORT-LOGISTICS ACTIVITIES Trucking from farm to consolidator in CDO Trucking from consolidator to CDO pier Freight Handling (CDO & MNL) Wharfage (CDO & MNL) Trucking from MNL North Harbor to Navotas Terminal Fee Losses (spoilage) TOTAL TRANSPORT-LOGISTICS COST CONTAINER 0.40 0.05 1.75 0.10 0.01 0.50 0.00 1.31 4.12 RORO 0.40 0.05 1.68 0.00 0.00 0.50 0.05 0.09 2.77

% of Transport Logistics Cost to Retail Price (Manila = PhP25/kilo)

16.5%

11%
(July 2005)

Source: NEDA-UNDP Study, From SEED to SHELF: A Logistical Evaluation of the Philippine Agriculture

Impact
Travel time from Mindanao through Visayas to Luzon reduced by 10 hours Reduction in transport cost of People by 40 percent Cargo by 30 percent

Challenges
Transport costs may increase due to Collection of taxes/fees and implementation of cash points by LGUs
Legalized through municipal ordinances (e.g., Balingoan, Misamis Oriental and Mahinog, Camiguin Taxing powers of LGUs in LGC should not cover goods carried in or out of, or passing through the LGU

Imposition of double charges when port of destination is operated and ran by independent port authorities (e.g. ARMM and Cebu)

Interventions for the logistics system

Concerned LGUs to lift additional taxes/fees PPA to resolve double charging Conduct a study on the extent of problem on LGU collection of taxes/fees including an inventory of LGUs imposing said fees LGUs to provide signages, rest rooms, access roads LGU and private sector to invest in RORO ports and facilities Further reduce cost of goods by transporting them in frozen form rather than live Investments in cold storage facilities

High Priority Routes

Nautical Highway System
SRNH/ Western Nautical Highway Oroquieta City-Dapitan City-Dipolog City Road Dapitan City-Dumaguete City RORO Central Nautical Highway Calinan, Davao-Buda, BukidnonMisamis Oriental Road Butuan City-Agusan del NorteMisamis Oriental Road
Source: MTPDP

Estimated Investment Requirement (in Million PhP)

558.00 Not Available

Not Available 216.00

High Priority Routes (cont d)

Nautical Highway System Central Nautical Highway Balingoan, Misamis OrientalGuinsiliban, Camiguin RORO Guinsiliban-Mambajao Road, Camiguin Mambajao, Camiguin-Jagna, Bohol RORO - Jagna, Bohol RORO
Source: MTPDP

Estimated Investment Requirement (in Million PhP)

26.80
Not Available

54.87

High Priority Routes (cont d)

Nautical Highway System
Eastern Nautical Highway Davao-Compostela Valley-(Alegria Santiago, Bayugan-San Francisco-TrentoMonkayo)-Agusan-Surigao Road - Alegria-Santiago segment - San Francisco-Trento segment - Trento-Monkayo segment Surigao City-Liloan, Southern Leyte RORO ESTIMATED PARTIAL INVESTMENT REQUIREMENT
Source: MTPDP

Estimated Investment Requirement (in Million PhP)

234.41 1,382.90 57.778 202.90 PhP 2,803.65

Value of DTI-Monitored Investments, 2004

(In Billion Pesos)

AREA Mindanao Region IX Region X Region XI Region XII Caraga Region ARMM
Source of data: DTI Regional Offices

2004 28.7 2.1 14.0 6.4 2.8 2.0 1.4

% Share 100.0 7.3 48.8 22.3 9.8 7.0 4.9

Exports and Imports

(In million U.S. dollars)
AREA
Philippines Mindanao Region IX Region X Region XI Region XII Caraga Region

2003 2004 Growth Rates Exports Imports Exports Imports Exports Imports
36,231 1,407 99 293 857 136 22 37,497 699 19 269 345 58 8 39,681 1,318 75 282 794 146 21 44,039 716 26 249 338 97 6 9.5 (6.3) (24.2) (3.8) (7.4) 7.4 (4.5) 17.4 2.4 36.8 (7.4) (2.0) 67.2 (25.0)

Mindanao has 4% share of Exports and 2% of Imports

Source: PSY, 2005/NSCB

Tourist Arrivals, 2004

AREA

Philippines Mindanao % share to Phils Region IX Region X Region XI Region XII Caraga Region Rest of the Phils
Source: DOT

Total Travelers 10,169,282 1,699,420 16.7 289,046 495,438 521,162 446,087 236,733 8,469,862

Domestic 8,799,403 1,601,049 18.2 271,617 474,782 459,453 440,246 226,568 6,587,347

Foreign 1,272,662 74,631 5.9 8,312 19,243 44,386 2,770 8,232 1,157,762

Note: The source does not reflect a separate data for ARMM

Eco-tourism Destinations
Tourism Circuits/Destinations Cebu-Bohol- Camiguin Cagayan de Oro Zamboanga-Dipolog-Dapitan Davao-Samal Island Nature Adventure/Tours Canopy walk/mountain climbing/trekking (e.g. Mt. Kitanglad, Mt. Malindang, Mt. Apo, Lake Sebu, Claveria) Aqua adventures (e.g. white water rafting, scuba diving, surfing)

Seaports in Mindanao
LEGEND: Base Seaport Secondary ports & other Government ports

Surigao

Nasipit

Cagayan de Oro

Ozamiz

Iligan

Cotabato Zamboanga Davao

Gen Santos

Source: PPA and RPFPs

3. Industrial estates and ecozones ready for occupancy Industrial Estates

PHIVIDEC - largest IE in the country with an area of 3,000 hectares Zamboanga Free Port Zone First Industrial Park 729.38 hectares Second Industrial Park (Highlands) 15.391 hectares

Ecozones in Mindanao
Region IX Ayala de Zamboanga Industrial Park Region X First Cagayan de Oro Business Park Jasaan Misamis Oriental Ecozone Pueblo de Oro IT Park Global Ispat Industrial Park NSC Special Economic Zone` Region XI Region XII CIIF Agro-Industrial Park Filinvest Technology Park General Santos General Santos Special Economic Zone Sarangani Economic Development Zone Caraga Region Nasipit Agusan del Norte Industrial Estate Philnico Industrial Estate Shannalyne Technological and Environmental Park Tubay Agro-Processing Center

Apo Estates Special Economic Zone First Oriental Business & Industrial Park ARMM Samal Casino Resort SRC Calumpang Economic Development Zone Maguindanao Ecocity Tiger Valley Industrial Estate

Source: PEZA Website

4. Relatively low minimum wage rates

(As of June 2006)
PHILIPPINES Mindanao Regions Region IX Region X Region XI Region XII Caraga Region $3.82 $ 4.07 $ 3.99 4.20 4.03 $2.10 - 6.26

$ 4.10 $ 3.85

$ 3.28 ARMM Neighboring Countries (Effective July 2006) Malaysia $ 4.43 12.54 Thailand $ 3.63 4.57 Taiwan $ 16.28 South Korea $ 25.84 Singapore $ 14.74 46.32
Source: DOLE-NWPC

5. Electricity retail rates

Average Electricity Retail Rates (P/kWh) (As of December 2005)
Grid
Philippines Luzon Visayas Mindanao Electric Cooperatives Private Distribution Utilities

Residential
6.94 7.52 5.56 4.44 4.42 4.50

Commercial
7.17 7.46 5.68 4.74 4.70 4.86

Industry
6.27 6.65 5.24 4.62 4.60 4.64

Source: DOE-Electric Power Industry and Management Bureau

(As of December 2005)

PLANT TYPE Coal Hydroelectric Diesel Natural Gas Gas Turbine Geothermal Oil Thermal Renewable TOTAL
Source: DOE

Existing Power Plant Capacity in Mindanao,

CAPACITY (MW) Mindanao Installed Capacity 998 591 Dependable Capacity 901 491 Philippines Installed Capacity 3,967 3,222 2,058 2,763 955 108 1 1,698 100 1 1,493 1,978 650 26 15,619 Dependable Capacity 3,432 2,723 1,703 2,703 690 1,683 650 10 13,595

Comparative Electricity Rates, 2005

ASEAN Member Countries (P/kWh)
Country Cambodia Malaysia Myanmar Philippines Singapore Thailand Residential 8.41 5.40 3.29 3.45 15.62 8.73 11.20 7.56

Commercial 14.41 2.57 3.84 4.71 2.97 15.62 10.27 10.31 7.64 7.56

Industry 11.53 2.57 3.50 4.44 2.97 14.42 10.27 11.34 7.12 7.21

7.32 9.82

7.32

7.32

Source: Asean Center for Energy (Figures as of December 2005)

Development Interventions
Promote sustained peace and development through the peace process
GRP-MILF Peace panel progress during the 12th round of exploratory talks, particularly in joint advocacy initiatives on the peace process

Promote positive media coverages Undertake aggressive promotion of Mindanao as an investment/tourist destination Expand tourism police in Mindanao

Development Interventions Improve air access

Liberalize airline industry Facilitate and organize charter flights Rationalize charges/fees imposed on international carriers

4. Pursuing Responsible Mineral Development

Mineral Resources
Mindanao is rich in mineral resources
Gold, nickel, copper, iron, ore, lead, zinc, chromite and magnetite Accounts for nearly half of the country s gold reserves Accounts for 83% of nickel reserves in the country

Nickel deposit is the largest in Asia Mindanao produces mineral products amounting to PhP 13.5 billion in 2004, or about 25.5% of national output

Mineral Production, 2002

Metallic AREA Philippines Mindanao Rest of the Phils
Source: Philippine Yearbook 2005

% Share 100.0 11.2 88.8

Non-Metallic
(In Million Pesos)

% Share 100.0 24.7 75.3

(In Million Pesos) 6,636 743 5,894

14,255 3,516 10,739

Mineral Reservations
ZAMBOANGA (COAL) (1,016.8457 has.)

SURIGAO (NICKEL-IRON & CHROMITE) (201,487.5 has.)

DIWALWAL (GOLD) (8,100 has.)

Major Mining Exploration

Iligan Cement Corp. (limestone) Mindanao Portland Cement Corp. (limestone) Holcim Cement Corp. (limestone) TVI Canatuan Au Project (gold)

Pacific Cement Corp. (limestone)

King-king Mining Corp. (copper)

Mase Metals Mining Corp. Masara Au (gold)

Small Scale Mining Permittees (gold) Sagittarius Mining Inc. (copper)

Davao Union Cement Corp. (limestone) boli Au Project (gold)

At least 11 major mining projects and corporations are undertaking development/exploration in Mindanao.

Potential Mineral Reserves

Value of potential mineral reserves: Copper : $ 6.49 B Gold* : $ 2.00 B to $3.00 B Nickel** : $ 2 trillion
Based on a 60% recovery, mineable category reserve classification and the latest price of metals (as of June 2006).
* Gold recovery rate is 60% if flotation process uses mercury; 90% if flotation process uses cyanide. ** For Surigao del Norte alone, based on estimates of province. Potential mineral reserves is estimated at 109.7 million MT valued at $19,925/ton June 2006 price of nickel.
Source of Basic Data: MGB

Probable Gas and Oil Deposits

Sulu-Tawi-tawi Shelf

Cotabato Basin Agusan-Davao Basin

Development Interventions
Simplify procedures in acquisition of mining agreements and/or exploration permits Rehabilitate mined-out areas in accordance with Environmental Protection and Enhancement Program and Post-mining Land Use Plan Generate reliable and updated data on geo-scientific information and map on mineral resources Undertake detailed exploration work to guide prospective investors Enforce existing laws and regulations such as the Philippine Mining Act and People s Small Mining Act

5. Uplifting Social Development Conditions

Development Interventions
Food and nutrition program - food in every household
- promote household and community food production (with DA providing the seedlings and BFAR for fingerlings for the G4 Gardens and fishponds) - training mothers on preparing nutritious food (G4 harvests) - food for work (construction of feeder roads, school buildings) - rice-for-school feeding program

Skills training
-

retooling unskilled workers and OFWs technical/vocational training for out-of-school youth entrepreneurship program home-based livelihood program

Development Interventions
Access to education - promote distance teaching/learning as an alternative mode of schooling - school in every barangay - adoption of schools as zones of peace, promoting peace education and educational innovations - expand scholarship program to poor but deserving students - strengthen Madrasah and IP Education

Development Interventions
Health and sanitation - Remaining 28% of HHs provided sanitary toilets - Remaining 12% of HHs provided safe water

Development Interventions
Preferential access to social assistance, social protection and safety nets to IPs - poor families, esp. IPs enrolled in the National Health Insurance Program - promote backyard herbal gardens as source of inexpensive medicines

Source: MTPDP

6. Catch-up Program for ARMM

Development Interventions
Community-initiated peace zones and traditional conflict settlement intensified Barangay-based rehabilitation/development of conflict-affected areas (e.g., Camp Abubakar and Buliok towns) fast-tracked Culturally-responsive programs intensified to raise HDI (health, education, income) as ARMM strategy for health improvement and overall family welfare Wider coverage of Madrasah education program thru curriculum development and training of more madaris teachers

Development Interventions
Interconnect ARMM areas thru food-for-work and more extensive community-built feeder roads connecting Lanao del Sur-Lanao del Norte-Zamboanga, Maguindanao and Sultan Kudarat Massive agricultural production enhanced and productivity improved ARMM established as Halal food production and processing center Mariculture, crop and livestock production centers linked to markets through massive feeder road-bridge systems Irrigable areas provided with major irrigation and small water impounding projects

Development Interventions
ARMM Regional Economic Zone Authority provided adequate support to entice locator firms Trade relations between Sulu and Tawi-Tawi, and Sabah enhanced thru existing barter trade and other laws Legalization of Filipino Muslim workers in Sabah and Malaysia facilitated in coordination with concerned government agencies

Major ODA Funded Projects

Mindanao Road Improvement Project (MRIP)
Project Cost: PhP 2.2 Billion (GOP and Saudi Development Fund)

Mindanao Second Road Improvement Project

Project Cost: PhP 414.50 M (Kuwait Government)

ARMM Social Fund Project

Project Cost: US$ 33.6 M (World Bank), US$ 26.3 M (JBIC)

Local Government Support Programme for ARMM (LGSPA)

Project Cost: CAD$ 18.0 M

Mindanao Trust Fund contingent to signing of final peace agreement with MILF Action for Conflict Transformation (ACT) for Peace Programme

Other Peace and Development Projects in ARMM

Project ARMM Social Fund Autonomous Region in Muslim Mindanao (ARMM) 69 kV Sub-transmission Line Project (MINTA component) Autonomous Region of Muslim Mindanao (ARMM) Voltage Profile Improvement Project Agrarian Reform Integrated Development Project (ARIDSP) for ARCs/non ARCs Agricultural Cooperatives Production Enhancement program Advocacy on Civil Society Organizations' Participation in Local Governance ARMM Empowerment Program ARMM Human Resource Development Project Barangay Justice Service System Phase VI Community Sala'am (Peace) Corps Project II
Source: MEDCO

Scope ARMM ARMM ARMM ARMM ARMM ARMM ARMM ARMM ARMM Mindanaowide

Status Ongoing Proposed Completed Proposed Proposed Proposed Proposed Ongoing Ongoing Ongoing

Implementing Agency ASF-PMO TransCo TRANSCO DAR-ARMM with other Economic Agencies CDA DILG ARMM Development Academy/ ORG ARG-ARMM Gerry Roxas Foundation DOLE

Donor Agency WB

JICA USAID ILO

7. Building on Strong Partnerships

Among NGAs, RDCs, MEDCo, SUCs for convergence and complementation in initiatives Mindanao Working Group under the Philippine Development Forum NG-LGUs in the delivery of key public services LGU-private sector e.g., Mindanao Business Council, Chambers of Commerce and Industry for joint ventures and models for economic enterprise management

NG- NGO - business sector peace initiatives such as Tabang Mindanao, Gaston Ortigas NG foreign partnerships such as those in relation to
ODA programs and projects Implementation/ forging of peace agreements

Tri-people (IPs, Muslims, Christians) for sustaining peace, image building

End