Mindanao Development Report Indeed, our emerging peace, governance and development landscapes paint a brighter picture for Mindanao albeit with shades of challenges that we as Mindanawons together with our local, national, international partners---agree on affirmative actions in this forum.

Clearly, Mindanao fared well over the last two years… Good Governance GPH-MILF and GPH-NDF Peace negotiations progressing ARMM Reforms Signing of the FAB Improved Peace Condition Increased Mindanao Budget Increased Private Investment Improved Investment Climate GRDP Growth Low inflation Exports-Imports Improved Macro-Economic Performance Clearly, Mindanao fared well over the last two years. And this trend has become more pronounced with newer long-term growth prospects in the coming years. These favorable socio-economic performance and positive outlook in Mindanao have been propelled by a number of factors including the following: Mindanao benefited from the country's positive environment of strong business confidence and brighter economic growth prospects. The major reforms instituted by the national government in policy, governance and institutional levels have signaled strong political will to set in place transparent governance, predictability of business environment and thereby tempering business speculations. So, by October of last year (2012), the Philippines earned the distinction of posting one of the fastest GDP growth in Asia outpacing the growth rates of Indonesia, Malaysai, Vietnam, Thailand and Singapore. And as we have all heard from Sec Balisacan, we achieved a 2012 year end growth of 6.6%. Here in Mindanao, we are seeing the same bullish environment. The Reform Agenda that was pushed in the ARMM, the significant milestones achieved in the peace process especially the signing of the Framework Agenda on the Bangsamoro… Budget and Fiscal Reforms, Infrastructure

35% of the total awardees of the Gawad Pamana ng Lahi are Mindanao LGUs REGION PROVINCE CITY MUNICIPALITY IX Zamboanga del Norte Zamboanga Labasaon, ZDN X Misamis Oriental Cagayan de Oro Opol, Misamis Oriental XI Compostella Valley Tagum San Vicente (Laak) XII Cotabato Kidapawan Surallah, South Cotabato Caraga Agusan del Norte Surigao Cagawait, Surigao del Sur ARMM Sultan Mastura, Maguindanao ….and lately, the good showing of our governance indicators wherein 35% of the total LGUs nationwide that are recipients of the Gawad Pamana ng Lahi Awards are from Mindanao. All these helped create a political and economic environment that people can trust. The Gawad Pamana ng Lahi Award is granted to LGUs with exemplary performance in local governance

BOI- Approved Investments in Mindanao Surged up to 663% in 2011… where 99% of the equity are Locally driven P91.43 Consequently, we saw how business interests in Mindanao soared to high levels in 2011 and preliminary data for 2012 also indicate a similar trend. These new investments, when fully on-stream are expected to provide an estimate 3,000 additional jobs. P11.98B 1% 99% 2010 2011 Source: BOI

94.88% of Mindanao’s Labor Force are employed Of the 20 people aged 15 to 64 in MINDANAO 19 of them are EMPLOYED At the moment, our employment data shows that 19 out of 20 Mindanawons aged 15-64 are employed, but 5 out of those 19 employed are underemployed---meaning: employed persons who expressed the desire to have additional hours of work in their present job or in an additional job, or to have a new job with longer working hours. And with the projected half million new graduates (based on CHED projections) that will join our job-seekers by March or April this year, we need to double time on our effort to grow more enterprising and business opportunities for our growing labor force But, of the 19, 5 of them are UNDEREMPLOYED Source: NSO

Our Goal… A dynamic, inclusive, and green economy Physical integration thru infrastructure development Climate resiliency and adaptability Human Development: A Mindanao where no one is deprived Peace once and for all A culture-sensitive, self-reliant, responsive and accountable governance That is why, our vision for the next twenty years…..our goal is to accelerate economic growth in Mindanao and help assure that as many Mindanawons as possible benefit from the economic growth and that the benefits are equitably distributed. Help bring about and consolidate peace in Mindanao.... But in the short to medium term, and in concrete terms, however, we need to work on the following

Mindanao a major source of globally competitive agri-based products pineapple canned sardines seaweed banana tuna oil palm 1) Create more jobs and increase rural income. Encourage the growth of agribusiness and food processing/manufacturing firms to increase demand for our farmers' produce and promote value-adding services for our agri products especially for coconut, rubber, seaweeds, coffee where we still have very huge potentials.The drive for more value-adding thru manufacturing is really to enable industry provide jobs for those who are currently in the farms. Experience has shown that many manufacturing jobs actually do not need high-level graduates, such as those who are in the rural areas. For instance, we account for more than one-half (58%) of the country's coconut production and our top 5 major coconut producers in Mindanao are Davao Oriental, …..and... there is huge potentials and growing demand for coconut by-products such as ----. So we may need to look into how we can help our coconut industry increase its take advantage of this growing market demand in ways that will directly increase farmers income considering that coconut farmers are one of the poorest segments of the basic sectors. Targeting an Integrated Coconut Industry Development intervention to raise rural income, therefore, can be a potential inclusive growth strategy. Source of Raw Data: NSCB Processed by: MinDA

Strong demand for coco products… Baled Coco Coir Coco Fiber Nets of Coir Coco Mattress Coco Peat

Completing Major Transport Highways Proposed Road Project Existing Primary National Road Lake Mainit Circumferential Road Status: Need for funding On-going National Road Project Misamis Oriental-Bukidnon (Phividec-Alae) Road. Cost -Php100.0 million Cabanglasan-Loreto Road Status: Need for funding Iligan-San Fernando-Sta. Josefa-Trento Status: Need for funding Sibuco-Sirawai-Siocon-Baliguian-Gutalac Road Status: Some sections are on-going with allocation from CY 2013 of Php 200 M, DPWH IX to allocate additional funding for its targeted concreting in 2016 2) Increase competitiveness of our local industries by lowering the cost of doing business such as completing major transport highways in Mindanao, upgrading strategic ports and airports…. Sulu Trancentral Road Status: Need for funding Kalamansig-Palimbang-Maitum Road Status: DPWH XII to allocate additional funding for its targeted completion in 2016 Allocation for 2012:Php 200 M, on-going Funding: Total Estimated Cost to concretize the entire stretch (Php 2B) Sarangani- Davao Sur Coastal Road (Don Marcelino-Jose Abad Santos-Glan) Status: Need for funding (Php 900M) Tawi-tawi Road Status: USAID and DPWH project road upgrading completed. Need for funding for concreting of the entire stretch

Proposed Priority Airports and Seaport in Minanao CAGAYAN DE ORO PORT Construction of RORO berthing Facilities & Breasting Dolphin Estimated Cost:50.0Million SURIGAO PORT DEVELOPMENT Construction of New perimeter fence, covered walkway and gate lighting Estimated Cost: 30.0 Million SURIGAO AIRPORT-Rehab of admin bldg, inc. 5,000 gal of elevated water tank water T Estimated Cost: 5.0 Million ILIGAN PORT Construction off one story PTB Estimated Cost: 40.0Million SURIGAO AIRPORT-Improvement of Passenger Terminal Building including 10,000 gal of water Tank Estimated Cost: 7.5 Million ILIGAN PORT Construction of Emilia Khu road extension/Construction of alternate port access road Estimated Cost: 49.0M OZAMIS AIRPORT- Concreting of Access VPA Road Estimated Cost: 2.5 Million PAGADIAN AIRPORT Construction of 10,000 gal overhead water tank Estimated Cost: 3.0 Million STA.ANA PORT Construction of Passenger Terminal Building Estimated Cost: 40.0 Million NEW ZAMBOANGA INTERNATIONAL AIRPORT DEV’T Estimated Cost: 2.964 billion COTABATON AIRPORT – Expansion of runway extension by 35m at runway 28 and Expansion/Rehabilitation of Passenger Terminal Building Estimated Cost:650.0 Million BABAK PORT – IGACOS Construction of Public Terminal Building Estimated Cost: 20.0 Million JOLO AIRPORT- Construction of overhead water tank Estimated Cost: 2.50 Million KALAMANSIG PORT Construction of Terminal Management Office Estimated Cost: 4.0 Million GENERAL SANTOS AIRPORT Construction of PTB gate complex/Completion of Perimeter Fence Estimated Cost:118.0 Million Note: Proposed project s are based on the PPA and CAAP proposed infra project as of 2012

Establish Food, Agribusiness and Logistics corridors Norther Mindanao Economic Zone Strategy:NMEZ Economic Role: Business Center, Industrial and Food Cooridor, Minerals Development Industry Focus: Coconut, Cassava, Aquaculture, Livestock/Poultry Tourism Development:SP-1, SP-3, SP-7 Environment:ARB, Bukidnon-Headwater, Lake Lanao Source of Hydro Power Power: Mini-Hydro, Hydro Regions: Region X, ARMM Mainland, CARAGA-Northern Western Mindanao Economic Zone MDG: MDG Spatial Development Strategy:WMEZ Economic Role: Processing Center, Business Center, Agri-Industrial Center, Trading Hub in BIMP-EAGA Industry Focus: Coconut, Seaweeds, Rubber, Mariculture Tourism Development:SP-4, SP-7 Environment: Power: Mini-Hydro, Power Barge Regions: Zamboanga Peninsula and ARMM-Island Provinces NMEZ WMEZ SMEZ Southern Mindanao Economic Zone MDG: Poverty Incidence:28.1 Spatial Development Strategy:SMEZ Economic Role:Food Corridor, Agri-Industrial Center, Minerals Dev’t. Business Center Industry Focus: Banana, Rubber, Sugarcane, Pineapple, Mango, Cassava, Aquaculture Tourism Development:SP-6 Environment:MRB, DRB, ARB, Agusan Marsjh Power:Geothermal, Hydropower Regions: Region XI, Region XII, CARAGA-Southern …. establishing Food, Agribusiness and Logistics corridors where we can consolidate products and achieve economies of scale, establishing R&D Centers to boost value adding industry activities… Legends: Primary Growth Center Secondary Growth

COMMITTED POWER PROJECTS INDICATIVE POWER PROJECTS 2012 2013 2014 2015 2016 2017 2018 Additional Power Sources COMMITTED POWER PROJECTS Coal : 500 MW Oil-based : 30 MW Hydro 8 MW Geothermal : 50 MW Total : 588 MW Mindanao Grid 150 MW Therma South Coal-fired Phase 2 100 MW Sarangani Coal-fired Phase 1 50 MW Mt Apo Geo PP 2012 2013 2014 2015 2016 2017 2018 2019 15 MW Mapalad Diesel PP 15 EEI HFO Peaking Plant 150 MW Therma South Coal-fired Phase 1 100 MW Sarangani Coal-fired Phase 2 35 MW Bukidnon Biomass 200 MW STEAG Coal-fired 100 MW PNOC Coal-fired PP 20 MW Tagoloan Hydro PP 12 MW Tamugan HEP PP …and ensure testing laboratories and additional power sources. 35 MW Darong Solar PV 5 MW camiguin Wind Farm 100 MW San Ramon Coal-fired 20 MW FDC Coal INDICATIVE POWER PROJECTS Coal : 420 MW Hydro : 32 MW Biomass : 35 MW Wind : 5 MW Solar : 35 MW Total : 527 MW DOE List of Power Projects as of 05 November 2012

Ridge to Reef Erosion Backflow Siltation Flooding 3) Climate resiliency and adaptability. Our Sendong and Pablo experience taught us a lot of costly lessons. We have seen how communities and industries that have been built over the years can easily be wiped out in a matter of minutes and hours of typhoons and flooding. Natural occurrences such as these are bound to happen and are beyond our control. So let us work on what is within our capacity to control. Flooding

Mindanao 8 Major River Basins Tagoloan River Basin Cagayan De Oro River Basin Area Families Affected Davao City 5,165 Davao Oriental 4,404 Davao del Norte 1,662 Surigao Del Norte 800 Compostella Valley 178 Agusan River Basin Agus River Basin Tagum-Libuganon River Basin For instance, we will have to organize community-based Watersheds and Riverbasin Organizations who can help jumpstart our long term efforts for integrated water resource management through our MindaNOW Nurturing Our Waters Program. We will have to reforest and integrate our efforts to achieve our targets for Mindanao under the National Greening Program. And jointly with the Climate Change Commission, our academe and private industry associations, we may have to define policy guidelines that will ensure adaptive and sustainable industry practices. Davao River Basin Mindanao River Basin Buayan-Malungan River Basin

The poverty incidence (PI) of all Mindanao regions is higher than the national average. Almost half of the population in Regions 9, 13 and ARMM are poor. 26.5% National Average CARAGA 47.8% ARMM 45.9% Zamboanga Peninsula 43.1% Northern Mindanao 39.6% SOCCSKSARGEN 35.7% 4) Human Development. We have seen slight improvements in the poverty levels of Mindanao provinc-es and municipalities. However, the attainment of the Millennium Development Goals remains to be a challenge especially for regions Caraga, ARMM, and Region 9. We need to implement a Catch up strategy on MDGs in Mindanao which has low prospects of attainment including households in geo-graphically isolated areas and indigenous communities. Davao Region 35.7% Philippines 26.5%

Supporting basic socio-economic development Link to Industries Communities Track 4 Institutional Development 5. Investments for Peace. The signing of the Framework Agreement has bolstered not just Mindanao's peace but also our economic growth prospects. While both panels from the GoP and the MILF are still fine tuning the details of the Framework Annexes, it is imperative at this stage that our Bangsamoro communities in the ARMM already feel the peace dividends of the peace process. Therefore, it is imperative at this stage that we scale up coordination and convergence of development support for these areas. Secretary Ging Deles and our GoP Panel Chair Miriam Coronel-Ferrer are both here with us today, they will elaborate more on this during their presentation. Area Development Track 3 Community-Based Assistance Track 1 & 2 Track 1 Source of map: OPAPP—www.gov.ph

Seal of Good Housekeeping ARMM Reforms Seal of Good Housekeeping Resumption of Peace Talks Pres. Noynoy Aquino and MILF chair Al Haj Murad Ibrahim , August 2011 6) Governance. In terms of governance, we are seeing two parallel yet equally important tracks. One is scaling up our initial effort to enhance governance capacities and setting in place governance transparency and accountability systems at all levels of the governance structure while at the same time, supporting and helping nurture the anticipated new political structure that will soon be set up in the Bangsamoro areas.

Our 2011 and 2012 were characterized by… Major reforms Economic resilience despite global challenges and despite the successive natural disasters that struck us, and 3) Breakthroughs in our peace-building journey. These and more concrete action steps that will be deliberated during the break out sessions this afternoon will help us define our little steps towards our larger agenda of peace and development in Mindanao. These targets and our prospects for long term growth can be easily derailed if not guarded and consistebntly supported. We need to consolidate contributions from all stakeholders (private sector, academe, media, civil society organizations, donor community, etc) in unclogging deterrents to our achievement of these potentials and together watch for warning signs, of spoilers, who can derail our efforts.   Conclusion Finally, let me attempt to summarize where we are right now in a few notes. Our 2011 and 2012 were characterized by 1)major reforms, 2)economic resilience despite global challenges and despite the successive natural disasters that struck us, and 3) breakthroughs in our peace-building journey. The governance, economic and peace landscape of Mindanao is positively changing. But we have also seen that even these positive developments can be threatened by our changing climate and natural environment. So I guess in 2013, we need everyone's help in consolidating these positive gains amidst the context of changing natural environment as well as a changing global developments.

M2020 Banner Programs Mindanao Nurturing Our Waters (MindaNOW); Mindanao Integrated Coconut Industry Development; Mindanao Multi-Modal Transport and Logistics Program; Mindanao Sustainable Power Development and Upgrading Program; and Support to Basic Socio-Economic Development. 

Good day!