Commission on Information and Communications Technology Erwin Alampay Maria Teresa M. Camba Philip Varilla ADB/ITU Final International Workshop on Rural ICT Development 30 June – 2 July 2011 Krabi, Thailand PHILIPPINE COUNTRY REPORT

CICT Part 3 Funding Mechanism

CICT 3. Funding Mechanism The Philippines has long recognized the vital role of communication and information in nation-building. (Philippine Constitution, Article 2, Sec. 24). It considers telecommunications as essential to the countrys economic development, integrity and security, and as such it shall be developed and administered as to safeguard, enrich and strengthen the economic, cultural, social and political fabric of the (Philippines Republic Act 7925, Article 2, Sec. 4). This has been echoed and restated in various medium term development plans and sectoral plans over the years.

CICT 3. Funding Mechanism 1980s – RTDP/NTP : Funded through ODAs and Government Appropriations NetworkProjectFunding Northern LuzonRTDP Japanese official development assistance (ODA), with yearly government appropriations. Already privatised, the facilities left with TELOF cost US$19M. Southern LuzonNTP I-1 Japanese ODA, with yearly government appropriations. Already privatised, the facilities left for TELOF to operate are estimated to cost US$6M. VisayasNTP –I-2 French ODA, with yearly government appropriations. It amounted to a total of US$54M MindanaoNTP-I-3Italian ODA, with yearly government appropriations It amounted to a total of US$68M.

CICT 3. Funding Mechanism Early to mid-1990s – – PPP in the implementation of the Municipal Act of 1989 – Private Sector given the first option to deploy telecom systems in provinces they selected – Govt will install telecom systems in provinces not selected with ODA funding support – The National Telecommunications Development Plan ( ) sought to divest the state of its role in the delivery of telecommunications services through privatization and to encourage growth through more competition. – Private sector led: Competition/Liberalization – EO 59 required mandatory interconnection among telecommunication providers Service Obligations: Ex. Service Area Scheme – EO 109 introduced service obligations

CICT 3. Funding Mechanism 2000s – Still primarily private sector dependent – In most cases, projects have involved a combination of state-funded mandates and investments, together with obligations and incentives for private operators More recent initiatives have focused on rural telecenters, and broadband infrastructure and related resources. – The country has not adopted a Universal Service Fund – Provides for an E-Government Fund

CICT 3. Funding Mechanism E-Government Fund Was created as an alternative funding source for mission- critical, high-impact, and cross-agency ICT projects: 1.To Institutionalize a facility and mechanism that would provide full funding support for mission-critical government ICT projects; 2.To ensure successful completion of high-impact ICT projects that would jumpstart the development and implementation of eGovernment throughout the country; and 3.To facilitate the professional evaluation, selection and monitoring of ICT projects that would lead to more effective and/or efficient cross-agency interfaces. Examples of ICT projects funded include the e-LGU project and Community e-Centers (CECs)

CICT End of Presentation Thank you! End of Presentation Thank you!