1. Investment Grade Philippines:
Seizing Opportunities to Achieve Inclusive Growth
September 2013
0

2. Table of Contents
I.
II.
III.
IV.
V.
VI.
Macroeconomic Performance and Outlook........................................
Real Sector...................................................................................
Monetary, External and Financial Sectors....................................
Fiscal Sector
• Revenue Collection and Debt Management...........................
• Expenditure Management.......................................................
Sectoral Performance and Outlook....................................................
Trade, Industry and Investments..................................................
Agriculture and Fisheries..............................................................
Tourism.........................................................................................
Infrastructure
• Energy.....................................................................................
• Road Transport and Flood Management................................
• Airports, Seaports and Mass Transport Systems....................
• Public-Private Partnership.......................................................
Philippines Sovereign Credit Ratings: Journey to Investment Grade.
Profiles of Speakers and Panel Discussants......................................
Directory of Economic Agencies.........................................................
Investor Relations Office Brochure.....................................................
2
3
17
29
42
54
55
73
89
110
127
138
144
153
166
187
190
1

3. I. Macroeconomic Performance and Outlook
2

4. Real Sector
Secretary Arsenio M. Balisacan
National Economic and Development Authority
3

5. The Philippine Economy Sustained Robust Growth in H1 2013
2012
H1 2013
6.8%
GDP Growth
H1 2012
6.4%
7.6%
Share to
GDP
Growth
Rate
Share
to GDP
Growth
Rate
Share to
GDP
Growth
Rate
Agri, Fishery, Forestry and Hunting
11.1
2.8
10.9
0.9
10.2
1.4
Industry
32.0
6.8
32.1
5.6
33.0
10.6
Of which: Manufacturing
22.1
5.4
22.1
5.1
22.6
9.9
Services
56.9
7.6
57.1
8.0
56.8
7.1
Household Final Consumption
70.4
6.6
69.1
6.7
67.7
5.3
Gov’t Final Consumption
10.3
12.2
11.5
13.2
12.3
15.3
Capital Formation
18.5
(3.2)
15.6
(15.7)
18.5
27.3
Of which:
20.3
10.4
19.8
5.6
20.8
12.7
1.8
29.8
1.9
50.2
2.4
36.2
Private Construction
6.4
11.5
5.6
(4.9)
6.2
17.4
Durable Equipment
10.0
8.0
10.2
6.2
10.2
7.9
(1.8)
(333.8)
(4.2)
(1583.0)
(2.3)
41.2
Exports
48.4
8.9
53.0
10.3
45.8
(7.0)
Imports
47.6
5.3
49.0
3.3
45.2
(0.7)
By Industrial Origin
By Expenditure
Fixed Capital
of which: Public Construction
Changes in Inventory
Source: National Statistical Coordination Board
4

6. Sound Macroeconomic Fundamentals Supported this
Remarkable Performance
Favorable Interest Rate and Sound Banking System
Low and Stable Inflation
(%)
9.0
10.0
8.3
8.0
Headline Inflation
Low-end Target
High-end Target
7.0
6.5
6.0
8.0
15.7
8.2
3.0
3.2
2.9
CAR, RHS
4.4
2.0
2008
2009
2010
2011
2012
2013*
4.8
3.7
3.0
3.5
3.6
2.8
2.0
2007
20.0
16.0
Real interest rates, RHS
4.0
3.8
16.9
15.8
18.4
17.6
NPL Ratio, LHS
4.6
4.2
2006
15.5
5.7
4.0
2005
(%)
17.5
6.0
5.5
5.0
17.6
2.9
4.2
0.2
*Jan - Aug 2013
Note: High and low-end targets are based on the BSP publication on Inflation Targeting dated
March 2013; Actual inflation figures are based on the 2006 CPI series.
2005
2006
2007
8.0
2.2
1.9
3.7
2008
2009
2010
4.0
3.5
2.1
0.0
12.0
0.0
2011
2012
Sustainable Fiscal and External Position
80.0
70.0
NG Debt to GDP (LHS)
68.5
60.0
50.0
-0.2
54.7
61.4
-0.9
54.8
53.9
-1.0
Fiscal Balance to GDP (RHS)
-0.9
52.4
50.9
40.0
30.0
0.0
51.0
49.5
-0.5
60.0
-1.0
50.0
-1.5
40.0
-2.0
-2.0
-2.3
-2.6
20.0
-2.5
-3.0
-3.7
20.0
-3.5
-3.5
0.0
2005
2006
2007
* As of June 2013
2008
2009
2010
2011
2012 2013*
52.7
44.1
4.4
37.1
5.6
31.3
4.5
32.6
30.1
5.3
3.2
27.0 24.1
2.922.8
2.1
1.9
6.0
5.0
4.8
30.0
4.0
3.0
2.0
10.0
-4.0
10.0
External Debt to GDP, lhs
Current Account to GDP, rhs
(%)
1.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012 2013*
* As of Q1 2013
5

7. Our Competitiveness also Increased
Global Competitiveness Index (GCI) Report
Country
2013-2014 2012-2013 2011-2012
GCI Ranking GCI Ranking GCI Ranking
Singapore
2
2
2
Malaysia
24
25
26
28
28
Thailand
37
38
39
Indonesia
38
50
46
Philippines
59
65
75
Vietnam
70
75
65
Cambodia
88
85
S&P's Upgraded
to BBB-(May 2,
2013)/Stable
21
Brunei
Moody's Upgraded to
Ba1(July 25,
2013)/Rating under
Review for Upgrade
97
Source: World Economic Forum
Fitch Upgraded to
BBB -(March 27,
2013)/ Stable
6

8. We are on Track with Respect to our Economic Targets;
the Present Challenge is to Improve Social Outcome Targets
Philippine Development Plan Targets by 2016
Poverty Incidence down to
7-8%
22%
6.8-7.2%
16.6%
Gross Domestic Product
Investment/GDP ratio
Unemployment Rate
(Millennium Development Goal: 2015)
Where are we now?
6.8% (2012)
7.6% (HI 2013)
Real GDP Growth
20.3% (2012)
20.8% (HI 2013)
Fixed Capital as ratio
to GDP
7.0% (2012)
7.3% (ave. of LFS’
2013 Jan, Apr & Jul
round)
Unemployment rate
27.9% (H1 2012)
28.6% (H1 2009)
Poverty Rate
7

9. Particularly Employment Generation
Ave 2010
Ave 2012
Ave 2012
(Jan, Apr & Jul)
Ave 2013
(Jan, Apr & Jul)
Labor Force Level (‘000)
38,893
40,426
40,424
40,972
Employment Level (‘000)
36,035
37,600
37,577
37,978
54.5
57.2
57.1
58.6
2,859
2,826
2,847
2,994
7.4
7.0
7.0
7.3
Underemployment Level (‘000)
6,762
7,514
7,632
7,509
Underemployment Rate (%)
18.8
20.0
20.3
19.8
Indicator
Wage and salary workers (%
share to total employment)
Unemployment Level (‘000)
Unemployment Rate (%)
Source: Labor Force Survey, National Statistics Office
8

10. And Poverty Reduction to Achieve Inclusive Growth
First Semester Poverty Incidence Among Population
Poverty Incidence Among Population by Region
(%)
2011
(%)
35
14.3
30
28.8
28.6
27.9
12.8
25
20
16.6
8.9
64.0
15
2012
10
14.4
5
14.3
NCR, Reg III and IV
12.7
0
S1 2006
S1 2009
S1 2012 12.8
FY 2015 *
Other Luzon
Visayas
8.9
64.0
8.8
64.1
Mindanao
*Philippine Development Plan Target
Source: National Statistical Coordination Board
9

11. For the Midterm Assessment of PDP 2011-2016, We are Taking
Stock of Lessons Learned in the past 3 years
Good governance has proven to be an effective platform upon which strategies
should be implemented
Macroeconomic (fiscal, financial, external) and political stability fuels positive
expectations that lead to growth
Economic growth is necessary but not sufficient for poverty reduction
Growth strategies need to have spatial and sectoral dimensions to ensure inclusivity
Disasters can negate the gains and even push back development
10

12. Thus, Positive Actions with Sectoral and Spatial Dimensions
will be Undertaken to Achieve Inclusive Growth
Infrastructure development focusing on connectivity between regions/provinces,
especially transport and power
New growth drivers outside NCR (agri/agribusiness, tourism, IT/BPM in next wave
cities, public housing, manufacturing, infra/logistics)
Investment in human capital to improve the competitiveness/ productivity of current
and future stock of the labor force
Provision of social protection against income and employment shocks for the most
vulnerable
Improved resilience to natural disasters
11

13. We also Have our Priority Sectors to Support Inclusive Growth
Philippine Development Plan 2011 - 2016
Midterm Assessment
PDP Midterm Update
Priority Sectors
Agribusiness/Agriculture
Manufacturing
Housing
Infrastructure/Logistics
Tourism
12

14. Given these Concrete Strategies, We are Confident that
Growth will Continue in 2013 and Beyond
2012
Actual
H1 2013
Actual
2013 Target
2014 Target
GDP
Growth (%)
6.8
7.6
6.0-7.0
6.5-7.5
Agriculture
Growth (%)
2.8
1.4
3.5-4.5
3.2-4.2
Industry
Growth (%)
6.8
10.6
6.4-7.5
7.4-8.5
Services
Growth (%)
7.6
7.1
6.3-7.3
6.7-7.6
Source: National Economic and Development Authority as approved by the Development Budget Coordinating Committee
13

15. Supported by the Following Growth Drivers
Production
Expenditures
Strong performance of agri-based manufacturing, and recovery of semiconductor and
electronics
Robust public and private construction projects
Buoyant domestic and local tourism
Continued strong growth of wholesale and retail trade
Real estate particularly housing as overseas Filipinos and BPOs continue to drive the property
sector
Greater productivity in agriculture and rebound of the fisheries subsector
Higher public construction and investments in power generation
Robust private investment in construction and durable equipment
Strong household consumption due to better employment opportunities, strong remittance
inflows, and low and stable inflation
Increased tourist arrivals and more demand for business process management
Improvement of external trade conditions
14

16. We also Remain Vigilant Against the Following Near-term Global
and Domestic Risks to Growth…
Weather disturbances (e.g., Typhoons, prolonged monsoon rains)
Delays in the implementation of infrastructure development projects, particularly
power
Excessive capital inflows/outflows
Uncertainty of economic recovery in the Euro area and Japan
Tapering of monetary stimulus in the US
Further economic slowdown in BRIC, particularly China
Possible spike in commodity prices (e.g., petroleum)
15

17. …while Taking Advantage of Opportunities
Improvement in the global economic environment
–
Sustained consumption growth in emerging markets
Demographic transition
–
Rising middle-income class, continued growth of working-age population
Increased economic integration of ASEAN member countries
–
Open flow of goods, services, labor, technology, finance
More financial resources available
–
Fiscal space
–
Investment credit-rating expected to reduce borrowing costs
16

18. Monetary, External and Financial Sectors
Governor Amando M. Tetangco, Jr.
Bangko Sentral ng Pilipinas
17

19. Policy/Reform Milestones and Their Impact
Policy
Monetary
Sector
Maintained the BSP's key policy interest rates at 3.5 percent for the
overnight borrowing or reverse repurchase (RRP) facility and 5.5 percent for
the overnight lending or repurchase (RP) facility.
Impact
Price stability and
non-inflationary
growth
Kept reserve requirement ratios steady.
Rationalized the Special Deposit Account (SDA) facility by reducing SDA
rates by a total of 150 basis points to 2.0 percent, imposed uniform rates
across all tenors and fine tuned access of banks and trust
department/entities to the SDA facility.
External
Sector
Further liberalized existing foreign exchange (FX) regulations; new rules
aim to further simplify FX transactions of the general public with banks.
Adopted a number of macro prudential regulations, including guidelines on
non-deliverable forwards (NDF) transactions involving the Philippine Peso.
Financial
Sector
Strengthened the capacity of the banking system to endure shocks through
the issuance of guidelines for the adoption of the Basel III capital adequacy
standards for universal and commercial banks.
Continued to take the lead in promoting financial inclusion with programs
and reforms aimed at fostering greater access to financial services.
Strong external
position and stable
foreign exchange
rate
Efficient, sound,
competitive and
inclusive financial
sector
Continued to champion financial learning and consumer protection.
18

20. Monetary Policy Settings Remain Supportive of
Non-Inflationary Growth
Prudent monetary policy has been effective
in safeguarding price stability
Previous rate cuts working their way through the economy
Headline Inflation vs. Target (%)
RRP Rate and Actual Lending Rate (%)
2002- Aug 2013
Jan 2009– Aug 2013
12
12
Headline
10
10
Lower bound of target
Upper bound of target
Aug’13:
YTD= 2.9%2.1%
8
8
Jul 2013:
5.9%
Jan-Aug ’13: 2.8%
July ‘13 = 2.5%
6
6
4
4
2
Aug 2013:
3.5%
RRP Rate
2
Average bank lending Rate
2009
2010
2011
2012
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
0
Jan
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
0
2013
19

21. Robust External Position Despite Lingering Global
Economic and Financial Uncertainties
BOP Position and Current Account remain in surplus
Balance of Payments, (US$ Million)
15000
Capital & Fin'l Account
13000
Current Account
11000
Balance of Payments
9000
External debt-to-GDP ratio declines significantly
7000
Current Account:
3.4
5000
External Debt (US$ Billion) and External Debt/GDP (%)
64
3000
1000
60.2
62
-1000
-3000
2004 2005 2006 2007 2008 2009 2010 2011 2012
70
External debt in US$ billion (lhs)
60
External debt as % of GDP (rhs)
60
Q1
Q1
2012 2013
59
58
50
40
Foreign exchange reserves continue to build up
56
Gross International Reserves, (US$ Billion)
90
83.2
80
24.1
22.8
14
30
12
70
GIR (lhs)
Import Cover (rhs)
12.0
60
54
20
10
52
10
50
0
50
8
40
6
30
4
20
2004 2005 2006 2007 2008 2009 2010 2011 2012
Q1
Q1
2012 2013
2
10
0
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
EndAug'13
20

22. Sound and Stable Banking System
Bank capitalization remains above regulatory standards
and international norms
Quality of loan portfolio continues to improve
Capital Adequacy Ratio
Total Loans Portfolio (Php Million) and Non-performing Loans
Ratio (%)
(Philippine Banking System)*
(Philippine Banking System)
4500
4,192
17.1
18
4000
16
3500
14
3000
12
2500
10
2000
1,822
19
2012: 18.4
18
17
16
2012: 17.3
8
1500
6
2.5
1000
4
500
0
14
2
0
15
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total Loans Portfolio (LHS)
NOTE:
• Starting January 2013, TLP and NPL
of banks are computed as prescribed
under BSP Circular No. 772. Gross
NPL represents the actual level of NPL
without any adjustment for loans
treated as “loss” and fully provisioned.
• Under the new computation, latest data
available is for U/KBs only.
NPL Ratio (RHS)
May-12 May-13
TLP (Php Bn)
3,282 3,685
Gross NPL Ratio (%) 3.2
2.8
Net NPL Ratio (%)
0.5
0.4
13
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CAR solo
CAR consolidated
* 2001-2011 data is on the Philippine Banking System; available
data for 2012 is on U/KBs.
21

23. State of Financial Inclusion in the Philippines
Expanding number of branches and ATMs
from 2009 to March 2013, especially in MIMAROPA and
selected regions in Mindanao
Improving overall physical network of Philippine banks
Regional Growth Rates (%) in the Number of
Banking Offices and ATMs,
2009 – March 2013
Number of Banking Offices and ATMs
2001 – March 2013
14,000
140
12,000
120
10,000
100
Growth in the number of banks
Growth in the number of ATMs
Growth rate (%)
8,000
6,000
No. of banking offices
4,000
No. of ATMs
2,000
80
60
40
20
ARMM
CAR
Caraga
SOCOSKSARGEN
Davao Region
Northern Mindanao
Zamboanga Peninsula
Eastern Visayas
Central Visayas
Western Visayas
Bicol
MIMAROPA
CALABARZON
Central Luzon
-40
Cagayan Valley
-20
Ilocos Region
Mar'13
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
NCR
0
22

24. BSP’s Performance
TARGET/
FORECAST
ACTUAL
2012
2013
2013
3.2 percent
2.8 percent
(Jan-Aug)
4 ± 1 percent
1. Prudent monetary
policy
Inflation
2. Robust external
position
Balance of Payments
(BOP)
US$9.2Bn
(Jan-Dec 2012)
US$3.7Bn
(Jan-Jul 2013)
US$4.4Bn
Gross International
Reserves (GIR)
US$83.8Bn
(End-Dec 2012)
US$83.2Bn
(End-Aug)
US$87.0Bn
External Debt-to-GDP
ratio
24.1 percent
(End-Dec 2012)
(End-2011: 26.9 percent)
22.8 percent
(Q1 2013)
Decreasing
Capital Adequacy Ratio
(CAR), consolidated
basis (U/KBs)
18.4 percent
(End-2012)
(End-2011: 17.7 percent)
n.a.
Increasing
Non-Performing Loans
(NPL) ratio (banking
system)
2.5 percent
(End-2012)
(End-2011: 2.9 percent)
n.a.
Decreasing
3. Sound and stable
financial system
23

25. Enhancing Corporate Governance
Revised existing regulations on corporate governance in line with international best practices
such as the “Principles for Enhancing Corporate Governance” issued by the Basel Committee
on Banking Supervision
Amended the guidelines strengthening BSP’s governance standards to rationalize the
definition/qualifications of an independent director and the composition of the members of
board-level committees
Amended the regulations on the confirmation of the election/appointment of directors/officers
of banks with a rank of senior vice president (SVP) and above to simplify the confirmation
procedures
Amended the Manual of Regulations for Banks (MORB) and the Manual of Regulations for
Non-Bank Financial Institutions (MORNBFI) on the familial restrictions applicable to an
independent director to align the said restrictions with the existing provisions of the Securities
Regulation Code
24

26. Intensifying Efforts toward Financial Inclusion
Policy, Regulation and
Supervision
Financial Education and
Consumer Protection
Data and Measurement
Financial Inclusion
Advocacy
Section Title
No. 1 in the world in microfinance regulatory environment (2009-2012)
Implemented the enhanced rules on true and transparent lending practices
Updated Anti-Money Laundering Rules and Regulations
Widened range of products (i.e., micro-agri loans, housing microfinance loans, micro-deposits
and microinsurance, etc.)
Established Economic and Financial Learning Centers (EFLC) in 21 BSP regional branches
Institutionalized the Financial Consumers Affairs Group (FCAG) to provide avenue for complaints
resolution and redress.
Worked toward a systematic collection of financial inclusion data for informed policy-making
Mapped out financial service access points:
– Banking offices went up by 25 percent to 9,442 as of March 2013 from 7,585 in 2001
– ATM network accelerated by 227 percent to 12,700 as of March 2013 from 3,882 in 2001
Sustained leadership in global financial inclusion initiatives
Continued work on sharing knowledge and experience in financial inclusion with international
peers
Spearheaded the implementation of the Credit Surety Fund (CSF)
– As of 7 August 2013, 27 CSFs in various provinces have been organized
Ensured the smooth flow of remittances through the use of PhilPass REMIT System
– Since its implementation in 2010 (up to June 2013), the PhilPaSS- REMIT System has
processed 1,006,773 transactions with a corresponding value of Php39.18Bn
25

27. Macroeconomic Outlook for 2013
Actual
Projections
2012
2013
2013
GDP Growth (%, 2000=100)
6.8
7.6 (H1)
6.0 – 7.0 a/
Headline Inflation (%, 2006=100)
3.2
2.8 (Jan-Aug)
3.0 – 5.0 a/
Exports Growth (%)
Based on the BPM6 concept
Based on NSO data
20.9
7.9
7.9 (Q1)
-3.4 (Jan-Jul)
11.0 a/
Imports Growth (%)
Based on the BPM6 concept
Based on NSO data
11.3
2.7
-8.2 (Q1)
-3.8 (Jan-Jun)
13.0 a/
OF Remittances 1/
Amount (US$ Bn)
Growth Rate
21.4
6.3
10.7(Jan-Jun)
5.6
22.5b/
5.0 b/
Current Account
(US$ Bn)
7.1
3.4 (Q1)
7.0 b/
Balance of Payments
(US$ Bn)
9.2
3.7 (Jan-Jul)
4.4b/
GIR (US$ Bn)
83.8
83.2 (end-Aug)
87.0 p/
a/
Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 3 July 2013
Based on BSP projections presented during the Monetary Board meeting on 16 May 2013
1/ Cash remittances coursed through banks
p/ revised
b/
26

28. Key Risks to Inflation
Downsize risks:
Uncertainty over the strength of the global economy and its impact on international commodity
prices
Upside risks:
Likelihood of higher electricity rates
Continued strong liquidity growth
27

29. BSP Policy Directions
Monetary sector
Sustain an appropriate
monetary policy stance
consistent with the BSP’s
primary mandate of
promoting price stability
conducive to sustained
economic growth
Continue to carefully scan
the operating environment
with a forward-looking
perspective to move in a
pre-emptive fashion to
address risks to price
stability
External sector
Maintain marketdetermined exchange rate
Keep comfortable level of
reserves
Continue to promote
external debt sustainability
Financial sector
Continue to undertake steps to
strengthen the domestic financial
system and help manage financial
stability risks
Sustain advocacies on
microfinance, financial inclusion,
consumer protection and
economic and financial education
28

30. Revenue Collection and Debt Management
Secretary Cesar V. Purisima
Department of Finance
29

31. Revenues Grew Faster than Nominal GDP
While nominal GDP grew 8.9% in 2012, total revenues and tax revenues rose faster at 12.9% and
13.2%, respectively
2011
In Php Bn
2012
Growth Rate
Actual
Program
Actual
(2012/2011)
Total Revenues
1,359.9
1,560.6
1,534.9
12.9%
Tax Revenues
1,202.1
1,427.4
1,361.1
13.2%
BIR
924.1
1,066.1
1,057.9
14.5%
BOC
265.1
347.1
289.9
9.3%
157.9
131.2
165.5
5.5%
75.2
61.8
84.1
11.8%
Expenditure
1,557.7
1,839.7
1,777.8
14.1%
Surplus / (Deficit)
(197.8)
(279.1)
(242.8)
22.8%
-2.0%
-2.6%
-2.3%
Non-Tax Revenues
BTr Income
% of GDP
Source: Bureau of the Treasury
30

32. Lower than Programmed Deficit for H1 2013
Revenues were boosted by the implementation of the Sin Tax Law
In Php Bn
2012
Jan-Jun
2013
Jan-Jun
Growth Rate
Actual
Program
Actual
(2013/2012)
Total Revenues
760.9
861.0
839.5
10.3%
Tax Revenues
671.5
791.4
746.3
11.1%
BIR
521.2
620.3
593.7
13.9%
BOC
143.4
163.9
145.1
1.2%
6.9
7.2
7.5
8.8%
89.4
69.7
93.1
4.2%
Other Offices
Non-Tax Revenues
BTr Income
50.2
31.6
49.5
-1.4%
Expenditure
795.4
945.7
890.8
12.0%
Surplus/(Deficit)
(34.4)
(84.7)
(51.3)
49.2%
Source: Bureau of the Treasury
31

33. Improved Fiscal Position
…through a combination of improved tax effort, reduction in interest cost and more efficient expenditure
2009
Actual
2012
Actual
2013
Adjusted
12.2%
12.9%
13.5%
BIR effort
9.3%
10.0%
10.5%
BOC effort
2.7%
2.7%
2.9%
Others
0.1%
0.1%
0.1%
Expenditure (% of GDP)
17.7%
16.8%
16.7%
Deficit (% of GDP)
-3.7%
-2.3%
-2.0%
Interest payments (% of GDP)
3.5%
3.0%
2.8%
Interest payments (% of Expenditure)
19.6%
17.6%
16.8%
Tax effort (% of GDP)
Source: Bureau of the Treasury
32

34. Impact of the Sin Tax Law Implementation
Excise tax revenue collections from alcohol and tobacco increased by 46.1% in the first half of 2013
The significant increase in collections came even with an equally significant drop in
the volume of cigarettes and alcohol produced in the market.
Excise Tax Collections
Based on Actual Payments
Growth Rate
Jan - Jun
(In Php Bn)
2012
2013
(2013/2012)
TOBACCO
14.6
22.4
53.1%
ALCOHOL
11.8
16.2
37.3%
TOTAL
26.4
38.5
46.1%
*Numbers may not add up due to rounding off
Sin tax law was implemented starting January 2013
Source: Department of Finance
33

35. Achieved Investment Grade from Major International Rating Agencies
The improvement in the fiscal health of the economy is one of the reasons cited by major credit
rating agencies in upgrading the Philippines’ sovereign credit rating to Investment Grade
S&P
Upgraded to BBB-/Stable from BB+ (May 2, 2013): INVESTMENT GRADE
Fitch
Upgraded to BBB-/Stable from BB+ (March 27, 2013): INVESTMENT GRADE
Moody’s
R&I
JCRA
Ba1/“Rating Under Review for Upgrade” (July 25, 2013)
BBB-/Positive from BBB-/Stable (August 2, 2013): INVESTMENT GRADE
Upgraded to BBB/Stable from BBB-/Positive (May 7, 2013): INVESTMENT GRADE
34

36. Tightening of Credit Default Swap (CDS) Levels
Investor confidence in Philippine obligations is now ranked closer to Thailand than Indonesia
Marked decline in average CDS spreads after upgrade: 127.9
94.5
Even as CDS began to track upwards after Bernanke’s May 22 Statement
300
Fitch Upgrade
275
S&P Upgrade
250
225
Bernanke
Statement
200
175
Indonesia
150
125
Philippines
100
Thailand
75
50
8/6/2012
10/6/2012
12/6/2012
2/6/2013
4/6/2013
6/6/2013
Source: Bureau of the Treasury
Credit Rating
S&P
Fitch
Moody’s
Philippines
BBB-
BBB-
Ba1/RUR*
Thailand
BBB+
BBB+
Baa1
Indonesia
BB+
BBB-
Baa3
*Rating Under Review
Source: S&P, Fitch, Moody’s
35

37. Impact of Investment Grade Rating on Private Sector
Access to cheaper borrowings to finance expansion
For the first 7 months of 2013, nine (9) local corporations already
raised a total of:
US$1.8Bn
from offshore markets
Php48.5Bn
from domestic markets
Benefits to certain corporations:
Globe
• 7-year peso bond for a
4.8875% coupon issued on
July 17, 2013 (down from
6.000% issued on a 7-year
bond in June 2012)
Megaworld & SMC
• 10-year dollar bonds for
coupons lower than 5%
(4.25% & 4.875%,
respectively) issued in April
2013
36

38. 2013 Outlook
Deficit to go down to 2.0% of GDP in line with the fiscal sustainability program
2012
2013
Growth Rate
Actual
Adjusted
(2013/2012)
Total Revenues
1,534.9
1,745.9
13.7%
% of GDP
14.5%
14.7%
Tax Revenues
1,361.1
1,607.9
% of GDP
12.9%
13.5%
1,057.9
1,253.7
18.5%
289.9
340.0
17.3%
13.3
14.2
6.8%
165.5
136.0
(17.8%)
84.1
57.7
(31.3%)
8.3
2.0
(76.0%)
Expenditure
1,777.8
1,983.9
11.6%
Surplus/(Deficit)
(242.8)
(238.0)
(2.0%)
% of GDP
-2.3%
-2.0%
In Php Bn
BIR
BOC
Other Offices
Non-Tax Revenues
BTr Income
Privatization
18.1%
Source: Department of Finance
37

39. 2014 Fiscal Program
The new budget is in line with the medium-term fiscal deficit program of 2.0% of GDP in 2014
In Php Bn
Total Revenues
% of GDP
Tax Revenues
BIR
BOC
Other Offices
Non-Tax Revenues
BTr Income
Privatization
Expenditure
% of GDP
Surplus/(Deficit)
% of GDP
2013
2014
Growth Rate
Adjusted
Proposed
(2014/2013)
1,745.9
2,018.1
15.6%
14.7
15.1
1,607.9
1,879.9
16.9%
1,253.7
1,456.3
16.2%
340.0
408.1
20.0%
14.2
15.5
9.2%
136.0
136.1
0.1%
57.7
56.2
-2.6%
2.0
2.0
0.0%
1,983.9
2,284.3
15.1%
16.7
17.1
(238.0)
(266.2)
-2.0
-2.0
11.8%
Source: Department of Finance
38

40. Prudent Liability Management
Increasing reliance on domestic financing sources and improved debt sustainability
NG Financing Program
GG Debt/GDP
…focused on increasing domestic source of funds
...lower than NG Debt/GDP ratio
share (in %)
60
100%
80%
% to GDP
44
16
34
11
52.4
35
50.9
51.5
50
60%
40%
20%
54.8
13
56
84
66
2011
44.3
43.5
87
65
2010
89
41.4
40
40.6
0%
2009
Foreign
2012
2013
2014
Emerging Program
Domestic
For 2014, we are planning a Php1.0Bn issuance offshore to reprice ROP credit after investment grade rating.
Source: Bureau of the Treasury, Department of Finance
30
2009
2010
NG Debt
2011
2012
GG Debt
The country ’ s improving debt profile is even more
pronounced using the international debt indicator of general
government (GG) debt/GDP ratio.
Source: Bureau of the Treasury, Department of Finance
39

41. Consolidated Public Sector Deficit
…to remain low at 0.8% of GDP in 2014 due to lower NG deficit and improved GFI and LGU performance
100.0
(241.4)
(355.8)
(175.1)
(163.3)
(158.3)
Php Billion
-100.0
(83.5)
-0.7
-1.5
-200.0
(100.8)
-0.8
0.0
-1.0
-1.3
-2.0
-1.8
-300.0
% of GDP
0.0
1.0
-3.0
-3.1
-400.0
-4.0
-4.0
-500.0
-5.0
2009
2010
2011
2012
2013 BESF
2013
Revised
2014 BESF
GFI – Government Financial Institution
LGU – Local Government Unit
Source: Department of Finance
40

42. Revenue Enhancement Measures
Focus to ensure that positive momentum in government fiscal finances continue
Full implementation of RA 10351 (Sin Tax Law)
Measures in Place
Existence of Fiscal Intelligence Unit
Heightened collections from:
Self-employed
Estate Taxes
Other Initiatives
DOF Legislative
Agenda
Anti-smuggling strategies:
Port accreditation
Import Mapping
Audit of oil companies
Trade statistics reconciliation
Rolling import plan
BIR
BOC
Fiscal Incentive Rationalization
Tax Incentive Management and Transparency Act (TIMTA)
Customs Modernization Act
Valuation Reform Act
Fiscal Regime for Mining Industry
41

43. Expenditure Management
Secretary Florencio B. Abad
Department of Budget and Management
42

44. Assessment of the Latest Economic Performance
Resurgence in public spending has contributed to the growth of our domestic economy
GFCE Growth, Public Construction Growth and GDP Growth (in %)
36.2
40.0%
29.8
30.0%
20.0%
10.0%
12.2
10.0%
8.0%
15.3
6.0%
4.0%
2.1
2.0%
0.0%
0.0%
-10.0%
-2.0%
-20.0%
-4.0%
-30.0%
-40.0%
-6.0%
-39.5
GFCE
Public Construction
GDP
-50.0%
-8.0%
-10.0%
2011
2012
2013 S1
*GFCE – Government’s Final Consumption Expenditure
43

45. NG Disbursement Performance, January to June 2013
PARTICULARS
Levels (Php Bn)
H1 2012
H1 2013
Actual
Actual
2012 vs. 2013
Increase/(Decrease)
Amount
Percent
As % of
Full-Year
Program
REVENUES
760.9
839.5
78.5
10.3
48.1
DISBURSEMENTS
795.3
890.8
95.4
12.0
44.9
CURRENT OPERATING EXPENDITURES
659.5
730.5
70.9
10.8
46.0
Personnel Services
Maintenance and Other Operating Exp.
Subsidy
Allotment to LGUs
Interest Payments
Tax Expenditures
255.3
114.9
12.8
109.3
150.0
17.3
282.9
145.0
11.1
120.9
157.1
13.5
27.6
30.1
(1.7)
11.6
7.1
(3.8)
10.8
26.2
(13.2)
10.6
4.8
(22.0)
45.3
45.6
24.6
50.0
47.3
50.0
124.1
163.7
39.6
31.9
43.0
88.3
0.9
35.0
125.5
0.3
37.9
37.2
(0.6)
2.9
42.2
(63.1)
8.4
41.4
25.3
49.7
(3.4)
(15.1)
(129.6)
(51.3)
(16.9)
CAPITAL OUTLAYS
Infrastructure/Other Capital Outlays
Equity
Capital Transfers to LGUs
NET LENDING
11.6
SURPLUS/DEFICIT
(34.4)
49.2
(23.7)
21.5
*Numbers may not add up due to rounding
44

46. NG Fiscal Outlook, FY 2013
Stronger bias towards more productive expenditures (MOOE and CO)
Particulars
Levels (Php Bn)
2012
2013
Actual
Adjusted
Percent of GDP
2012
2013
Actual
Adjusted
Growth
Rate
REVENUES
1,534.9
1,745.9
14.5
14.7
13.7
DISBURSEMENTS
1,777.8
1,983.9
16.8
16.7
11.6
1,411.0
542.6
256.7
42.1
218.6
312.8
38.1
1,588.4
624.4
317.9
45.0
241.8
332.2
26.9
13.4
5.1
2.4
0.4
2.1
3.0
0.4
13.3
5.2
2.7
0.4
2.0
2.8
0.2
12.6
15.1
23.8
6.8
10.6
6.2
(29.4)
339.3
250.8
21.3
67.2
381.0
303.4
1.3
76.3
3.2
2.4
0.2
0.6
3.2
2.6
0.0
0.6
12.3
21.0
(93.8)
13.5
27.4
14.5
0.3
0.1
(47.1)
(242.8)
(238.0)
(2.3)
(2.0)
(2.0)
CURRENT OPERATING EXPENDITURES
PS
MOOE
Subsidy
Allotment to LGUs
Interest Payments
Tax Expenditures
CAPITAL OUTLAYS
Infra & Other CO
Equity
Capital Transfers to LGUs
NET LENDING
SURPLUS/(DEFICIT)
*Numbers may not add up due to rounding
45

47. Major Government Spending Initiatives
Ramped-up investments for public infrastructures
Levels (Php Mn)
Particulars
Roads and Bridges
Basic Educational Facilities*
Flood Control/Seawalls
Housing
National Irrigation
Farm-to-Market Roads
Health Facilities Enhancement Program
Electrification
Airports/Air Navigational Facilities
Other Public Works
Water Supply
Preliminary and Detailed Engineering
Land Transportation/Railways
Ports and Lighthouses
Quick Response Fund
Others
Total Infrastructure Outlays
2012
Actual
2013
GAA
2014
Proposed
84,218
11,012
11,331
10,518
24,193
4,868
5,078
4,941
802
15,120
1,583
780
116
679
1,383
39,113
108,097
26,268
16,536
23,203
22,212
5,657
13,558
6,374
5,195
1,321
3,335
1,724
6,661
2,373
1,150
51,043
144,443
45,626
34,069
16,317
16,172
12,603
9,037
9,679
9,014
5,092
4,503
3,026
1,642
1,377
1,305
85,529
215,735
294,708
399,432
Growth Rate (% )
2012-2013
28.4
138.5
45.9
120.6
(8.2)
16.2
167.0
29.0
547.8
(91.3)
110.7
121.0
5,633.5
249.6
(16.8)
30.5
36.6
2013-2014
33.6
73.7
106.0
(29.7)
(27.2)
122.8
(33.3)
51.8
73.5
285.4
35.0
75.5
(75.3)
(42.0)
13.5
67.6
35.5
Source: Department of Budget and Management
* Inclusive of School Building Program
46

48. Major Government Spending Initiatives
Key investments for poverty reduction and equitable access to basic social services
Conditional Cash Transfer
Program
K-12 Program
Universal Health Care
Program
Expansion of household beneficiaries in 2013 from 3.1Mn to 3.8Mn
Further expansion to cover 4.4Mn households in 2014 to include street families and indigenous
peoples
Passed into law on May 15, 2013
Increase DepED Budget from Php238.8Bn in 2012 to Php293.4Bn in 2013 to cover the
construction /rehabilitation of classrooms (21,488) and teachers (61,510)
Sin Tax Law passed to provide Php23.97Bn in 2013 and Php29.78Bn in 2014
Ongoing formulation of IRR by DOH, DOF and DBM
Tertiary Education
CHED implemented the Students’ Grants-in-Aid Program for Poverty Alleviation (SGP-PA) to
increase the number of higher education graduates from poor households
For academic year 2012-2013, 4,041 students have benefited under the SGP-PA
Prioritize approval of course/program offerings driven by the requirements of the market such as
the BPOs and Tourism Industry
Technical Vocational
Education
The Php1.4Bn proposed budget for the Training for Work Scholarship Program for 2014 is twice
the Php700Mn provided in 2013. The proposed budget is intended to subsidize 163,300
enrollees
47

49. Budget by Sector, FY 2003-2014
Continued significant increase in resources committed to Social and Economic Services
along with a significant decline in Debt Service
Percent Share of Total Budget
48

50. Expenditure Management Reforms
Significant expenditure management reforms have been initiated to implement the government’s
commitment towards a strong and healthy fiscal position over the medium-term
Faster Budget Execution
2010: Disaggregation of Lump Sum Funds
2011: Procurement Innovations (Early Procurement & Expansion of Philippine Government
Electronic Procurement System (PhilGEPS)
2012: Account Management Teams
2013: One-Year Validity of Appropriations
2014: The Budget as Release Document
Tighter Alignment
with Priorities
2010: Zero-Based Budgeting & Evaluation of Major Programs
2011: Alignment of Budget with 5 Social Contract KRAs
2012: Program Budgeting Approach & Groups of Agencies Working on Common Objectives
2013: Budget Prioritization Framework
Performance Budgeting
Transparency and
Participation
in the Budget Process
2011: Review of OPIF to Refine Outputs, Performance Indicators and Budget
2011: Started Results-Based Performance Management System
2012: Performance-Based Incentive System and Grant of Bonuses according to Contribution to
Organizational Targets
2013: Performance-Informed Budgeting
2010: Government-CSO Principles of Constructive Engagement
2011: Mandatory Disclosure Provisions (2012: Transparency Seal)
2011: National Government Agencies-Civil Service Organization (NGA-CSO) Budget Partnerships
2011: Use of Technology for Transparency (PDAF webpage, BudgetNgBayan.Com, etc.)
2012: Bottom-Up Budgeting
49

51. Moving Towards Performance-Informed Budgeting
With the Performance Informed Budget or PIB, each peso is presented alongside
the outcomes and outputs that we spend for
Outcomes
Program Priorities
Department Outputs
Performance
Indicators
Inputs (PAPs)*
Enabled by Organizational Performance Indicator Framework (OPIF)
Consistent with Results-Based Performance Management System
Empowers Performance Delivery via Office of the Cabinet Secretary
*PAPs – Programs, Activities, Projects
50

52. Inclusive Development and Employment Generation
The government, through the budget, seeks to promote a new business model
Promoting a New Business Model
Government Support to Enterprise
Development for 2014
Driven by Communities and Small Entrepreneurs
Promotion and Development of Small and Medium
Industries – Php750Mn
Enabled by Micro Finance and NGOs
Shared Service Facilities – Php770Mn
Businesses Enlightened by Shared Value
Coconut Industry Development such as the
Smallholder Oil Palm Plantation Development
Project and Agro-Industrial Hubs Project –
Php2.0Bn
Supply of Services, Infrastructure Facilities and
Equipment for Fishery Industry –Php2.3Bn
51

53. Medium-Term Fiscal Program, FY 2012-2016
Infrastructure spending to grow from 2.5% of GDP in 2013 to 5.0% in 2016
Particulars
Levels (PHP Bn)
REVENUES
2012
Actual
2013
Adjusted
2014
Proposed
2015
Projection
1/
2016
Projection 1/
1,534.9
2,814.0
16.1
18.4
16.9
17.8
1,983.9
2,284.3
2,685.4
3,146.1
16.7
11.6
17.1
15.1
18.1
17.6
18.9
17.2
1,393.0
1,558.5
1,736.5
1,895.6
2,060.1
312.8
332.2
352.7
383.6
421.1
357.3
Current Operating Expenditures
2,388.4
15.1
15.6
16.8
14.1
% of GDP
Growth Rate
2,018.1
14.7
13.7
1,777.8
DISBURSEMENTS
1,745.9
14.5
12.9
% of GDP
Growth Rate
410.9
522.9
766.5
1,062.7
237.3
299.4
418.2
601.5
834.5
2.2
23.4
2.5
26.1
3.1
39.7
4.0
43.8
5.0
38.7
27.4
14.5
25.0
23.3
23.3
Of which:
Interest Payments
Capital Outlays
Of which:
Infrastructure Outlays
% of GDP
Growth Rate
Net Lending
DEFICIT
% of GDP
2/
(242.8)
(238.0)
(266.2)
(297.0)
(332.1)
(2.3)
(2.0)
(2.0)
(2.0)
(2.0)
1/ Subject to revision based on changes in macroeconomic assumptions and other factors
2/ Includes NG Infrastructure Outlays, GOCCs Infra Subsidy and LGU Infra T ransfer. T he LGU Infra Transfer estimates w ere
computed by using the average increase of LGU Land and Land Improvements, Buildings, Public Infrastructure and Construct ion in
Progress
Source: Department of Finance, Department of Budget and Management, National Economic and Development Authority
52

54. Aquino’s Legacy: Ensuring the Irreversibility of Reforms
By the time its term ends in 2016, the Aquino Administration seeks to leave
behind a legacy of sustained good governance. Here are the strategies being
employed to ensure the irreversibility of reforms:
Institutionalization
Reform
Constituency
Concrete
Dividends
Deeply embed reforms in the policies, systems and processes of government
(including legislation and leveraging technology)
Build a strong constituency – CSOs, communities, private sector, etc. – to provide constant
support and demand for reforms
Ensure that reforms lead to concrete benefits to people, so that the reversal of beneficial reforms
will be politically and economically costly
53

55. II. Sectoral Performance and Outlook
54

56. Trade, Industry and Investments
Secretary Gregory L. Domingo
Department of Trade and Industry
55

57. Improved Business Environment Attracted More Investments
BOI – PEZA Approved Investments (Php Bn)
Jan-Jun
Agency
2011
2012
BOI
368.93
PEZA
TOTAL
2012
2013
% Growth
360.35
165.51
201.90
22.0
288.34
311.95
43.61
83.69
91.9
657.27
672.30
209.13
285.59
36.6
Total BOI-PEZA approved investments increased by 36.6% in H1 2013
70,936 jobs to be generated
79.0% or Php159.5Bn of BOI-registered investments (Php201.9Bn) is in the energy sector to help
build the country’s capability to supply the much needed power requirements of domestic
enterprises
44.6% or Php37.3Bn of PEZA’s Php83.7Bn approvals is in the real estate sector, followed by
accommodation and food service (26.3% or Php22.0Bn), and manufacturing (19.8% or Php16.6Bn).
Big ticket projects: MCE Leisure (Philipines) Corporation; Petron Corporation; Bac-man
Geothermal, Inc.; Robinsons Land Corporation; Megaworld Corporation; SM Prime Holdings, Inc.;
Boracay Seascapes Resort, Inc.; Travellers International Hotel Group, Inc.; Hedcor Sabangan, Inc.;
Cebu Air, Inc.
Source: Board of Investments
56

58. Improved Business Environment Attracted More Investments
Robust Performance in H1 2013
BOI-PEZA Approved Investments by Industry
BOI-PEZA Approved Investments by Source
Share in %
Value in Php billion
Administrative
Support Service
Activities, 2.2% Others, 3.6%
50.0
45.0
Manufacturing,
7.0%
43.6
40.0
35.0
Accommodation
& Food Service
Activities, 9.2%
30.0
25.0
Electricity, Gas,
Steam & Air
Conditioning
Supply, 55.9%
Real Estate
Activities,
22.2%
20.6
20.0
15.0
10.0
9.3
7.1
6.0
5.0
2.2
1.5
1.5
0.0
Source: Board of Investments
Source: Board of Investments
57

59. Continued Increase in Foreign Investments into the PH
Continued Increase in Foreign Investment Inflows into the PH
based on BOI-PEZA Approved Projects from 2011-2013 (SH)
An Upward Trend in the Number of Registered Regional
Operating Headquarters (ROHQ)/Regional Headquarters (RHQ)
BOI-PEZA Approved Investments
No. of Registered ROHQs/RHQs and its Growth (%)
Year
Value
(Php
Bn)
Amount of
Approved
Foreign
Investments
% Share of
Foreign
Investments
% Growth
in Foreign
Investments
218.91
2012
672.30
282.45
42.01%
H1 2012
209.13
38.49
285.59
91.91
32.18%
% Growth
25
25%
37
48%
18.40%
H1 2013
2011
33.31%
20
2012
657.27
Number of Registered
ROHQs/RHQs
2010
2011
Year
29.03%
138.79%
Notable Foreign Investments in 2012 and 2013
Del Monte Corporation's (USA) US$60Mn in Maguindanao for its 3,000-hectare banana plantation that will employ
4,500 workers
Holcim's (Switzerland) additional investment of US$400-US$450Mn for a new cement plant
Fomento Económico Mexicano Sociedad Anónima's (FEMSA) (Mexico) acquisition of Coca Cola Bottling Corporation
Philippines in the amount of US$688.5Mn representing 51% of the company's total value of US$1.35Bn
Itochu's (Japan) buy-out of Dole Food Company in the amount of US$1.685Bn
Source: Board of Investments
58

60. Sustained Investor Confidence
Strong Investor
Confidence on Domestic
Business Climate
BOI-PEZA facilitated the inbound missions of 567 companies/organizations (225 individual
company/ agency visits; 198 multi-company/delegations, representing 342
companies/organizations), accounting for 78% of total IPA-facilitated investment missions of 731
(preliminary data) for H1 2013.
BOI-Facilitated
Investment Inbound
Missions
Realized Projects
– From the inbound visits, 6 projects amounting to US$87.2Mn have already been realized
estimated to create 1,500 jobs. Three (3) projects are positive leads.
Main Sectors of Interest of Firms
– Main Sectors: information technology and business process management (IT–BPM),
manufacturing, energy, construction, automotive, mining
– Other Sectors: garments, electronics, tourism, oil and gas, shipbuilding and aerospace
Countries of Origin
– Interest coming from European countries and sustained interest from the USA, topped the
country of origins of the visits in PH in H1 2013, followed by Japan, India, Australia, and
Malaysia.
Stronger Inflow of
Inbound Delegation and
Company Visits
Proactive support of our Philippine Embassies and Foreign Trade Posts
The continued positive perception and sustained business confidence of the global business
community on the present administration and the economy
The prevailing economic crisis in US & Europe which paved the way for investors to look at other
regions, particularly Asia as the next hot destination for business opportunities.
59

61. Merchandise Exports Gradually Recovering
Philippine Export Performance (January to June 2013)
PH’s merchandise exports heading towards a gradual
recovery
– PH merchandise exports amounted to US$25.59Bn in the first
semester of 2013.
– A gradual recovery can be gleaned from the reduced level of
contraction at 4.5% in the year-to-date (YTD) exports, aided
substantially by the 15.6% month-on-month (MOM) growth of
electronics exports in June 2013.
Top Exports
– Electronics remained PH’s top export at US$10.1Bn and
comprised 39.42% of total PH exports.
– Non-electronic exports contributed 55.3% of PH’s total
merchandise exports, posting US$15.5Bn and growth of 7.6%.
H1 2013 Exports
In US$ billion
6.0
4.9
5.0
4.0
4.0
3.0
2.5
4.3
3.7
4.0
3.2
2.6
2.5
2.4
2.3
2.0
1.0
1.5
1.5
1.8
Feb
Mar
1.6
Top Export Markets H1 2013
In US$ billion
4.5
1.7
2.0
0.0
Jan
Total Exports
Apr
Electronics
May
Jun
Non-Electronics
Top Markets
– Japan remained the PH’s top export market, with
exports up by 8.8%.
– Other export markets that also posted positive growth
for the first half of the year were Malaysia (44.5%) and
Korea (34.5%).
Source: Board of Investments
60

62. Export Outlook for 2013
Export Targets: 2013 -2016*
ACTUAL**
2011
Value
(in US$ Bn)
TARGETS
2012
Growth
Value
(in US$ Bn)
2013
Growth
Value
(in US$ Bn)
2014
Growth
Value
(in US$ Bn)
2015
Growth
Value
(in US$ Bn)
2016
Growth
Value
(in US$ Bn)
Growth
Total
Merchandise
48.3
-6.2
52.1
7.9
60
15
69
15
79
15
91
15
Total Services
17.9
26.7
18.6
4.2
21
15
23
10
26
10
29
10
TOTAL
EXPORTS
66.2
0.9
70.7
6.9
81
15
92
14
105
14
120
14
*Adjusted as of 18 July 2013. Growth targets as approved by Export Development Council in September 2012 are unchanged; details may not add up to totals due to rounding off.
** Actual export data as adjusted by the National Statistics Office and Bangko Sentral ng Pilipinas
Current Bright Spots in Exports
Agricultural Crops (e.g., banana, pineapple, mango), which are exported either as fresh or processed into foods and
beverages, are doing well internationally (more than 30% growth in January-May 2013).
Seaweed Products are gaining more foothold in China, despite competition from Indonesia, as seaweed derivatives now
have wider application in manufacturing industries like supplements, binding, stabilizers, and coagulants.
Coconuts are no longer limited to being used for conventional products as new products have evolved and are bestselling in the US, Europe and Asia, such as: coconut flour, milk substitutes, virgin coconut oil (VCO), coco water drinks and
coco water concentrates, and coconut oils.
Wood-Based Products (e.g., creative basketwork, wickerwork and natural fibers) continue to be noticed internationally
given the wider market access for vegetable plaiting materials and accents.
61

63. Export Outlook for 2013
Industry leaders maintain a positive outlook for the rest of the year with year-end export growth projections up to 11%.
Foreseen recovery in volume for electronics, pricing in mineral products, substantive digit growth in machinery and
transport equipment exports, and sustained double-digit positive performance of agro-based products are the primary
factors.
The final tale-of-the-tape will depend also on anticipated economic recovery in advanced economies and the continued
growth of emerging market economies. Reuters’ recent poll of 250 economic analysts showed that U.S. recovery will pick
up some momentum in the second half of the year, just as the euro zone economy steadies itself after more than a year in
recession. After a year and a half of recession, Europe’s battered economy could finally be showing signs of life later this
year, e.g., the German index of business confidence rose for the third month in a row while surveys of purchasing
managers in the euro area indicate manufacturing activity edged back into growth territory in July for the first time in 18
months.
As far as electronics is concerned, our local companies and PEZA locators need to continue to shift products from being
intermediate inputs into more assembled international consumer brands and strengthen domestic brands in smartphones
and tablets.
Progress in achieving the free movement of goods aspect of the ASEAN Economic Community (AEC) 2015 has been
largely achieved. Attention is now focused on non-tariff barriers and trade facilitation measures. At the same time, we
continue to maximize trade opportunities offered by our ASEAN dialogue partners.
Improved productivity is essential for the Philippines to compete with low-cost neighbouring economies, and additional
steps are needed to promote more competition, improve human capital, eliminate limitations on foreign investment, reduce
incentives, and reform state-owned institutions. With the Government's public-private partnerships underway, new
investments in major infrastructure projects to lessen costs on inter-island transportation are encouraged.
62

64. Policy Interventions to Support Exports
Creation of the Networking Committee (NC) on ASEAN Economic Community (AEC) 2015
–
The Export Development Council (EDC) created the NC on AEC 2015 that aims to prepare exporters to take full advantage
of the opportunities offered by AEC while addressing the competitive challenges of integrating into the regional and global
economies.
Pushing for the Amendment of the Cabotage Law
–
–
EDC, for the past three Congresses now, has been working for the amendment of the Cabotage Law, identified as one of the
root causes of high shipping cost, a barrier to domestic and foreign trade, especially for Philippine micro, small and medium
exporters.
President Aquino, in his 2013 State of the Nation Address, pronounced his support to the amendment of certain sections of
the Tariff and Customs Code of the Philippines and the Domestic Shipping Development Act of 2004 as filed by Cagayan de
Oro Representative Rufus Rodriguez through House Bill 1789.
Continue Streamlining Processes for Permits, including Reducing Fees of Key Regulatory Agencies such as
Food and Drug Administration (FDA)
–
The increase in fees in FDA, ranging from 900% to 4,000%, heavily burdens the already struggling food, cosmetics and drug
industries, based on EDC’s analysis. This renders PH products uncompetitive not only in the world market, but also on the
domestic front, especially in the face of the coming ASEAN Economic Integration in 2015. It is also seen to negatively affect
the Philippines’ competitiveness ranking due to the high cost and longer time in the processing of permits and licenses. EDC
recommends the conduct of a public hearing where all stakeholders, especially SMEs, will be able to air their side and for
FDA to explicate the increase in fees and respond to other issues that need to be addressed.
Harmonize the guidelines on the Gross Vehicle Weight (GVW) and the axle existing load policy.
– EDC-NC on Transport and Logistics sees the adverse effect of implementing the policy primarily on the increase in cost and
delay/inefficiency in the delivery of export goods.
Opening and Expanding market Access for Philippine exports
– Engage actively in the negotiations for SEAN Regional Economic Partnership (RCEP)
– Negotiate FTA with the European Union
– Prepare to negotiate entry into the Trans-Pacific partnership Agreement (TPP)
Apply for European Union Generalized Scheme of Preferences (GSP+) Program for Preferential Tariff
Actively advocate for renewal of United States Generalized Scheme of Preferences (GSP)
63

65. More Aggressive Export Promotion
Doing Business in Free
Trade Areas (DBFTA)
Regional Interactive
Platform for Philippine
Exporters (RIPPLES)
60 DBFTA sessions were conducted and attended by 6,522 participants representing 3,134 companies.
These sessions, which focused on exporting to FTA partners of the Philippines, were held in the National
Capital Region (NCR), Region I, III, IV-A, VI, X and ARMM.
From January to July 2013, 33 sessions/activities on Food, Gifts/Décor/Houseware, and Information
Technology-Business Process Management (IT-BPM) were conducted.
Through the Philippine Trade Trading Center (PTTC), private sector experts in food technology and
sanitation, creative design, IT certification, web design and merchandising, have been tapped for sessions,
interventions and clinics
The overseas missions in the Middle East in March 2013 have generated about US$45.4Mn in sales, which
were largely on fresh and manufactured food exports.
The Guangzhou Shenghao Import-Export Company (with US$3.0Bn global business as of 2012) recently
visited the Philippines, looking for suppliers of metal ores and scraps, notably copper, nickel and iron. It has
expressed interest to purchase or enter into venture agreements with five (5) major Philippine mineral
production companies (e.g., Atlas Mining Development Corporation, First Stronghouse Mining Corporation,
Apex Mining Company, TVI Resource Development, and, Ore Asia Mining and Development Corporation).
Successful Trade
Missions
Japan’s importation of foodstuff from the Philippines is expected to increase with the participation of 22 PH
companies in the 38th International Food and Beverage Exhibition (FOODEX) on 5-8 March 2013 in Tokyo.
Exportation of consumer non-durable products to Japan is also expected to pick up as a result of continuing
negotiations derived from the 6-8 February 2013 participation of the Philippines at the Tokyo International
Gift Show. Ten Philippine company participants projected actual on-site purchases amounting to
US$145,000. Buyers from Japan also attended the March 2013 Manila FAME.
In July 2013, 182 members of the Korea Importers Association – the only private organization exclusively
dedicated to facilitating imports into Korea – went to the Philippines; and out of them, 103 Korean
businessmen representing 81 companies met with 189 Filipino businessmen for business matching
sessions on industrial products, food, and services.
64

66. Policy Thrusts for 2013 and 2014
Industry Development
Program
To help ensure sustainable economic growth, the government partnered with industry and
academe to formulate and implement Industry roadmaps.
Revive the Industry Development Council (IDC)
Implement the Manufacturing Revival Program for 2014-2016
To address the horizontal issues of the different industries, the DTI has secured the commitment
and cooperation of the lead agencies (i.e., DPWH for infrastructure; DOE for power and energy;
DOST for research and development; DepEd, CHED, DOLE and TESDA for human resource
development; DILG and NCC for local government regulations; and DTI as lead for international
marketing and promotions and the amendment of cabotage-related laws & regulations)
Investment Priorities Plan
(IPP)
2013 IPP
– Emphasis put on job generating sectors of the economy
– Priority areas: Agriculture/Agribusiness and Fishery, Creative Industries/Knowledge-based
services, Shipbuilding, Mass Housing, Iron and Steel, Energy, Infrastructure, Research and
Development, Green Projects, Motor Vehicles, Strategic Projects, Hospital, Medical Services,
Disaster Prevention, Mitigation and Recovery Projects
2014 IPP
– Strategies and action plans identified in industry roadmaps will form part of the agency’s policy
thrusts, plans, and programs.
– Specific priority areas composed of investment gaps identified in the roadmaps.
65

67. Enabling Business Environment for Global Competitiveness
Philippine Business
Registry (PBR) and
Business Name
Registration System
(BNRS)
Business Permits and
Licensing Systems
(BPLS)
National Economic
Research and Business
Assistance Center
(NERBAC)
The BNRS and PBR successfully migrated to the cloud environment on 17 January and 4
February 2013, respectively, to address the numerous problems arising from hardware
issues, thus delivering better service.
Reduced average registration processing time of DTI, BIR (TIN-validation),SSS,
PhilHealth, and Pag-IBIG to 45 minutes from 4 to 5 days.
12,090 registration for PBR for the period January-April 2013
On enhanced BNRS, average processing time for business name transaction was further
reduced to 10 from 15 minutes. Business name registration used to take 4-8 hours.
177,488 registration for BNRS for H1 2013
A joint project of DTI and DILG to simplify permits and licensing systems in all cities and
municipalities, reducing the following:
– Steps to 5 or less
– Processing time to 10 days (new applications) and 5 days (renewals)
– Number of signatories to 5 or less
As of 31 March 2013, 926 LGUs have undergone process reengineering. (Source: LGA,
DILG)
As a one-stop business center that provides assistance to start-up enterprises in:
– business registration and licensing;
– knowledge management; and
– investment promotion and facilitation.
Established 15 regional centers and 78 provincial centers nationwide.
66

68. Enabling Business Environment for Global Competitiveness
Accreditation of Conformity Assessment Bodies. Accreditation is the independent
evaluation of conformity assessment bodies against recognized standards. In H1 2013,
the Philippine Accreditation Office (PAO) accredited the following:
Conformance to
International Standards
–
6 Certification Bodies accredited to ISO 17021
–
1 Certification Body accredited to ISO Guide 65
–
208 laboratories (182 testing; 26 calibration) accredited to ISO/IEC 17025
–
5 Medical Laboratories accredited to ISO 15189
–
2 Inspection Bodies accredited to ISO 17020
67

69. Achieving Inclusive Growth through MSME Development
Big Push for MSMEs
Provides access to market and finance, programs
for productivity and efficiency, creates conducive
business enabling environment, and builds
alliance with relevant agencies and institutions in
developing competitive and innovative MSMEs.
Implementation of MSME projects:
– National
Industry
Cluster
Capacity
Enhancement Project (NICCEP)
– Shared Service Facilities (SSF) Project
– SME Roving Academy
– Other SME projects (e.g., Rural Micro
Enterprise
Promotion
Programme
(RuMEPP), Access of Small Entrepreneurs to
Sound Lending Opportunities (ASENSO),
Tindahang Pinoy).
MSME Sector Targets and Accomplishments for 2013
Targets
Accomplished
(Jan-Jun)
%
a. MSMEs assisted
67,547
35,330
52.3
b. Jobs generated
259,189
141,272
54.5
c. Domestic sales
Php12,087.41Mn
Php5,791.73Mn
47.9
Source: Department of Trade and Industry-Regional Operations and Development Group
68

70. Achieving Inclusive Growth through MSME Development
Nationwide Industry Cluster Capacity Enhancement
Program (NICCE)
NICCEP aims to enhance the capacity of selected
industry clusters throughout the country to plan,
implement, facilitate service delivery, evaluate projects,
and improve industry competitiveness and business
environment.
Priority Industry Clusters
Abaca
Bamboo
Wood
Banana
Cacao
Mango
Coconut/coco coir
Coffee
Dairy
Fine jewelry
Rubber
Gifts, decors,
housewares
Calamansi
ICT
Meat (fresh
and
processed)
Poultry
Metals and
metal works
Mining
Milkfish
Muscovado
Organic
fertilizer
Pangasius
Pineapple
Processed food
Renewable
energy
Palm oil
Seaweed
Veggie noodles
Wearables and
homestyles
Performance of Pilot Industry Clusters
2012 - H1 2013
Investments
Domestic Sales
Exports Sales
Jobs created
MSMEs Created
MSMEs Assisted
Trainings Conducted
Beneficiaries Trained
TOTAL
(2012 – H1 2013)
Php9,375.38Mn
Php18,193.05Mn
US$7,681.06Mn
152,796
2,283
7,658
561
17,021
Source: Department of Trade and Industry-Regional Operations and Development Group
69

71. Achieving Inclusive Growth through MSME Development
Shared Service Facilities (SSFs)
SME Roving Academy
The Shared Service Facilities, a Public-Private
Partnership project to assist community-based MSMEs
nationwide through the provision of lacking machineries
and equipment for common use to increase their
productivity and efficiency.
The SME Roving Academy (formerly known as SME
Caravans) is a nationwide continuous learning program for
the development of MSMEs to help them become more
competitive in the domestic and international markets.
The type of equipment include packaging machines,
retort, kiln driers, dye vats, slicers, thickness planner
and handlooms, among others.
Php700Mn worth of technical support has been allotted
for 2013.
As of 31 July 2013, 121 SSFs with total cost of
Php43Mn have been launched, which benefitted
around 16,000 MSMEs and created approximately
5,000 additional employment.
Source: Department of Trade and Industry-Regional Operations and
Development Group, Department of Trade and Industry-Bureau of Micro,
Small and Medium Enterprise Development
Already launched in 12 regions, entrepreneurs are equipped
with the right entrepreneurial attitude and mind-set,
enhanced managerial capabilities, appropriate knowledge on
marketing preference, technology and lifestyles to help them
establish and grow their businesses.
Php17.3Mn budget allocated for 2013, to assist 10,000
MSMEs.
As of 31 July 2013, the SME Roving Academy has
capacitated a total of 957 SMEs and 704 would-be
entrepreneurs.
Source: Department of Trade and Industry-Regional Operations and Development Group
70

72. Empowering Consumers
Fair Trade Law Compliance (January to April 2013)
Total Number of DTI-Monitored Firms
Resolution Rate
Amount of fines collected
45,553
78%
Php821,250
The DTI unceasingly monitors and enforces the compliance of retailers and sellers to Fair Trade
Laws (FTLs) to protect the interest of consumers and to generate business.
During the first four months of 2013, a total of 45,553 establishments were monitored nationwide,
59 firms of which, or 0.1%, were found not complying with FTLs and 46 firms were penalized and
imposed a total of P821,250 in fines. Out of the 59 cases filed, 46 or 78% were resolved.
For the period January to May 2013, combined operations of the NCIPR* member agencies
resulted in seizures of 3,495,264 units of counterfeit and pirated goods with an estimated value of
Php1.57Bn.
*National Committee on Intellectual Property Rights
Source: Department of Trade and Industry’s First Semester 2013 Accomplishment Report
71

73. Empowering Consumers
Consumer Complaints Resolution (January to March 2013)
Performance
DTI
Business
Establishment
Number % to Total Number % to Total
Resolved
1,167
82.8
19,422
98.9
Pending
209
14.8
208
1.1
Referred / Endorsed
27
1.9
14
0.0
Dismissed
7
0.5
0
0.0
1,410
100.0
19,644
For Q1 2013, a total of 21,054 consumer
complaints were reported at Consumer
Welfare Desks (CWDs).
Of this number, 93% or 19,644 were
reported at business establishments
(BEs) while 1,410 or 7% were at DTI.
100.0
TOTAL
Resolved about 98% of total complaints
reported.
Remaining 2% was endorsed to other
concerned government agencies, still on
the process of resolution within DTI, or
was dismissed.
Source: Department of Trade and Industry’s First Semester 2013
Accomplishment Report
72

74. Agriculture and Fisheries
Secretary Proceso J. Alcala
Department of Agriculture
73

75. Midterm Milestones
Agriculture and Fisheries Sector
Posted record harvests in rice
Achieved significant reduction in rice imports
↓ 53.9%
6.9 %
Average annual
decline in rice
importation since
2010.
Average annual growth since 2010
18.0 MMT
US$1.4 Bn
volume of production in 2012
Average,
2001 -2010
Production
Growth
2010/2011
2011/2012
Average,
2011 -2012
2.5%
5.8%
8.1%
Estimated forex
savings due to
decrease in
imports
6.9%
palay production grew by 8.1% in 2012, the highest record since 2000
Improved rice self-sufficiency levels
94.4%
On-track
1
Tapped international niche market for rice
2012 rice self sufficiency
in achieving 100% self sufficiency by the end of
2013.
The Philippines exported premium and organic black rice varieties
(first time in 40 years to export in commercial volume) to Singapore
45 MT ; Dubai 35 MT ; Kuwait and HK 15 MT ; and Germany , HK,
Macau, Canada, Netherlands 11.55 MT
We aim to export to Russia, Italy, Middle East , USA about 97 MT
until year -end
1 more
info on http://www.da.gov.ph/index.php/2012 -03-27-12-04-15/2012 -04-17-0930-59/4169 -da-exceeds -100-mt-rice-export -target
74

76. Midterm Milestones
Agriculture and Fisheries Sector
Posted record harvests in corn
Average fish catch of a
commercial purse seiner:
7.8 %
Average annual growth since 2010
7.4 MMT
volume of production in 2012
Average,
2001-2010
Production
Growth
Regenerated fishery resources
2010/2011
2011/2012
Average,
2011-2012
3.9%
9.3%
6.2%
7.8%
Corn production posted a record growth of 11.4% in the 2013 Q1
Before closed
season:
<1 MT
After closed
season:
5 MT
Based on results of the 3-month closed season in
East Sulu Sea, Basilan Strait, and Sibuguey Bay.
For every 1 kg of sardines left to spawn,
be gained after the closed season .
27 kilos would
Source: Bureau of Agricultural Statistics, National Economic and Development Authority (2013)
Improved productivity in major commodities
Yield (mt/ha)
of various
commodities,
2010-2012
Baseline,
2010
Ave., 2011 2012
Rice
3.62
3.76
White Corn
1.62
1.67
Yellow Corn
3.63
3.96
Coconut
0.80
0.84
Pineapple
37.37
39.75
Banana
20.19
20.36
Sugarcane
49.85
Maintained disease-free status
62.94
Commodity
FMD-free
without vaccination
certified by the Office International des
Epizooties - World Animal Health Organization in
May 2011
Avian flu-free
75

77. Midterm Milestones
Agriculture and Fisheries Sector
Maintained stable food prices
Maintained stable food prices
Inflation Rates, Food and Non - Alcoholic Beverages
(2006=100)
5.4
Further developed rural infrastructure
from 2011 to June 2013:
Below the annual
PDP Target of
2.4
1.8
2011
2012
3% to 5%
Farm-to-Market Roads
839.4 km
better quality, concreted
FMRs constructed/rehabilitated
2013 (as of Aug)
Source: National Statistics Office (July 2013)
Expansion and opening of new export markets
Coco water Coco Sugar
Muscovado Sugar Organic
Coffee Fruit Juices
(Calamansi ) Processed
Peanut Fresh bananas
Cavendish chips Bagoong
Livestock and Poultry
Irrigation Systems
101,698 ha
89,275 ha
new areas generated
areas restored
76

78. Agriculture and Fisheries Performance
First Semester of 2013
The agriculture and fisheries sector
GVA grew by 1.3% for H1 2013 1
Gross Value Added in Agriculture and Fisheries
Value
(million Php)
Highlights
H1 2013, at constant 2000 prices
The A&F sector accounts
for
10 .2% of the Philippine economy
( H1 2013, NSCB )
200,000
180,000
↓ 0.5%
It employs 30 .4 % of the total
labor force,
or about 11.6Mn
workers ( January 2013 round, BAS )
160,000
Its
total
agricultural
exports
revenue
amounted
to around
$1.6B, higher by 41 .5% the same
period in 2010 ( Q1 2013 , BAS )
140,000
120,000
Top Industry Performers in terms
of 2013 H1 GVA growth are as
follows :
100,000
80,000
Mango
60,000
2.1%
40,000
20,000
0
H1 2013
Crops
Livestock
Poultry
4.2%
Pineapple
H1 2012
4.6%
Poultry
4.2%
6.6%
Fisheries
4.6%
3.6%
Livestock
2.1%
Fisheries subsector rebounded to
4.6%, up from -3.1% 2 the same
period in 2012 ( H1 2013, NSCB )
Fisheries
Source: National Statistical Coordination Board
1
2
up from the 0.8% growth the same period in 2012
due to improved production and prices which led to increase in gross receipts of major fish species
77

79. Agriculture and Fisheries Performance
First Semester of 2013
The sector posted modest farm output growth of 1.4% for H1 2013
Commodities with Notable
Increases in Output:
Fisheries Subsector
Skipjack
30.28%
Roundscad
24.46%
Yellowfin Tuna
13.98%
Crops Subsector
Tobacco
Source: Bureau of Agricultural Statistics 2013
11.18%
Onion
8.53%
Mango
6.70%
Poultry Subsector
Chicken
5.05%
Duck Eggs
4.60%
Livestock Subsector
Hog
2.36%
Dairy
2.35%
78

80. Department of Agriculture Accomplishments
First Semester of 2013
Irrigation Network
Services
Farm-to-Market
Roads
Development
Generated some 79,800 hectares of irrigated areas: about 9,100 from construction of
new systems, some 62,800 from rehabilitation and approximately 7,900 from
restoration of existing irrigation systems
Installed/constructed around 2,300 small-scale irrigation projects
Serviced some 52,600 individual beneficiaries
Constructed 28kms of concrete farm-to-market roads
Rehabilitated more than 150kms of existing farm-to-market roads
Agricultural and
Fishery
Equipment and
Facilities Support
Services
Distributed around 88,600 units of postharvest equipment and machineries such as
dryers, threshers, milling equipment, and postharvest equipment and machineries for
fisheries
Constructed 396 postharvest facilities for drying, storage, and processing
Constructed around 110 linear meters of foot bridges/ foot paths
Maintained 65 mariculture parks and constructed 3 new municipal fishports
Serviced some 1,300 individual and 170 group beneficiaries
Production
Support Services
Established some 2,700 production facilities including nurseries, greenhouses,
hatcheries, bio-mixing plants, and sea cages
Distributed around 70,900 production equipment and machineries including tractors,
tillers, cultivators, transplanters, sprayers, mist blowers, harvesters, reapers, and
fishery equipment
Upgraded 30 and maintained about 790 production-related facilities
Serviced some 155,400 individual and about 1,400 group beneficiaries
79

81. Department of Agriculture Accomplishments
First Semester of 2013
Marketing Support
Services
Facilitated establishment of 5 trading post/ centers
Established 57 food terminals
Facilitated 33 Livestock Auction Markets (LAMs)
Extension
Support,
Education and
Training Services
Conducted about 37,300 training and training-related events for some 63,200 participants
Provided scholarship grants to a total of 485 scholars, both for degree and non-degree
courses
Disseminated more than 660,000 copies of information, education and communication
(IEC) materials including print and audio-visuals.
Research and
Development
Credit Facilitation
Services
Regulatory
Services
Policy and
Planning Services
Funded/conducted about 1,800 research and development activities
Funded/established, upgraded, and maintained a total of 145 research facilities
Assisted some 10,800 individuals to grant or access loans and insurance
Made available a total Php306Mn for credit, loans, insurance for farmers and fisherfolk
Maintained disease-free status on Foot and Mouth Disease (without vaccination) and
Avian Influenza, and strengthen disease prevention activities across all commodities
Issued about 1.3Mn regulatory documents including certificates, clearances, permits,
licenses, and registrations
Implemented 361 Coastal Resource Management projects (i.e. fish sanctuaries, artificial
reefs, propagules planting)
Conducted about 1,600 stakeholders consultations
Conducted 43 evaluation studies
80

82. Sector Targets
2013 and Beyond
Growth in Agriculture and Fisheries
Gross Value Added (GVA)
Attain and Sustain Self-Sufficiency in Rice
100%
by the end of 2013
Maintain Stable Food Prices
3.5% to 4.5%
2013
2014
2015
2016
3.5-4.5
3.2-4.2
3.3-4.3
3.5-4.5
Crops
4.5-5.5
4.0-5.0
3.8-4.8
4.0-5.0
Livestock
1.2-2.2
1.2-2.5
1.5-3.0
1.6-3.5
Poultry
4.2-5.2
4.2-5.2
4.2-5.2
4.2-5.2
Fisheries
1.5-3.0
1.5-2.5
2.3-3.0
3.8-2.5
(or lower)
AF GVA
increased (%)
inflation rate of basic food commodities
Increase Agriculture Exports
10% or higher
Increase the total value of agriculture exports
Source: Philippine Development Plan – Results Matrix
81

83. Way Forward: Sector Priorities and Directions
2013 and Beyond
1 Attain and Sustain Food Security
2 Establish Enabling Environment for
Enhanced Agriculture and Fisheries
Competitiveness
3 Increase Agriculture and Fisheries
Climate Resiliency
4 Develop Focus Agro-Industries for
Inclusive Growth
82

84. 83

85. Attain and Sustain Food Security
Sector Priorities and Directions
The Philippine Food Staples Sufficiency Program (FSSP) is geared towards the
attainment of 100% rice self-sufficiency by end of 2013.
Key Strategies:
● Raise farm productivity and competitiveness
Accelerate investments in irrigation, post harvest facilities and mechanization
Encourage use of suitable high-quality seeds, fertilizers, and other ICM
Sustain research and development (R&D) in new varieties and crop management
Enhance delivery and effectiveness of extension services
Boost yield and overall productivity growth in rainfed lowland rice areas
Harness the potential of high-elevation and upland rice ecosystems
● Enhance economic incentives and enabling mechanisms
Implement NFA reforms (i.e. price support and procurement)
Strengthen credit provision to small farmers
Expand coverage of crop insurance.
● Manage food staples consumption
Encourage consumption of unpolished rice (brown rice or pinawa)
Promote production and consumption of other food staples (e.g. white corn, kamote, saba)
Reduce food wastage
Commitments:
Increase volume of
production of palay,
white corn and cassava
No importation beyond
international
commitments
Exportation of
premium rice to
balance the Minimum
Access Volume
commitment
Reduce the cost of
production to levels
competitive with the
border
84

86. Establish Enabling Environment for Enhanced
Agriculture and Fisheries Competitiveness
Sector Priorities and Directions
Commitments:
Increase efficiency in investments in agriculture and fisheries
−
Fully utilize allocated funds for natural infrastructure (e.g., mangroves, watershed, soil and
water, coral cover) and hard infrastructure (e.g. irrigation, FMRs, postharvest, trading
centers)
Raise productivity and production of major commodities
−
Increase yield of major crops
(e.g. rice, corn, high value crops, coconut)
−
Increase in volume of production of livestock and
fisheries
Strengthen regulatory capacity
−
Ensure compliance with international standards
(or equivalence)
−
Maintain FMD-free and Avian Flu-free status and
protect the borders from the entry of pests and
diseases
Intensify market development efforts
−
Develop new export commodities and new export
markets; Establish market-related infrastructure
85

87. Increase Agriculture and Fisheries
Climate Resiliency
Sector Priorities and Directions
In 2012, the Philippines adopted the APEC-initiated “Adaptation and Mitigation
Initiative in Agriculture” (AMIA) as the DA’s system-wide program on climate
change.
Commitments:
Invest in climate-resilient irrigation infrastructures with improved
design standards and construction protocols Construct farm-tomarket roads that are permanently surfaced and with proper
drainage
Invest in the development and improvement of agriculture and
fisheries technologies adaptive to climate change and extension
Facilitate credit access, develop risk transfer mechanisms (e.g.
weather-based insurance), and expand insurance coverage to
other commodities (e.g. fisheries, livestock)
Strengthen and modernize data collection
Intensify of climate change-related information, education and
communication (IEC) efforts
Strengthen soil and water conservation and management
program
86

88. Focus Agro-Industries for Inclusive Growth
Sector Priorities and Directions
Establish coconut agro-industrial hubs
Engage a majority of the three million
coconut farmers and households in activities
and enterprises
Develop emerging coconut-based products
(e.g. coco water, coco sugar, virgin coconut oil,
coco coir, coco nets, cooking oil, coconut milk
and coco diesel blend) with higher value than
the traditional copra-based enterprises
Ensure farmers participation in enterprises
from supplying raw materials to employment in
processing plants
Link social protection to small coconut
farmers’ participation in industry
development
87

89. Focus Agro-Industries for Inclusive Growth
Sector Priorities and Directions
Develop fishery-based agro-industries
Regenerate, protect, and promote responsible extraction
of resources
Establish payaos in the eastern seaboard and west of the
Philippine Sea to encourage the commercial fishers to leave
the municipal waters to the municipal fishers; set up small
payaos within municipal waters (15 km. from the shoreline) so
small fishers can easily return home during inclement weather
Provide appropriate infrastructure and facilities to
increase value of small farmers’ fish catch
Develop enterprises (e.g. seaweed growing and processing,
salt making, fish processing) that would provide income
opportunities to fishing households
Implement a mangrove restoration and multi-specie
hatchery program that will allow fisher families to raise blue
crabs, soft shell crabs and others in designated rehabilitated
mangrove areas
Secure home lots and land-based livelihoods for fishing
households
88

90. Tourism
Secretary Ramon R. Jimenez
Department of Tourism
89

91. Mandate of DOT
As provided by the Tourism Act of 2009 (RA 9593)
Planning and regulatory agency in the development and promotion of the
tourism industry, both domestic and international, in coordination with its
attached agencies and other government instrumentalities
Instill in Filipinos the tourism industry’s fundamental importance in the
generation of employment, investment and foreign exchange
90

92. International Visitor Arrivals
RANK
COUNTRY
1
KOREA
2
USA
3
JAPAN
4
CHINA
5
AUSTRALIA
6
TAIWAN
7
SINGAPORE
8
CANADA
9
HONGKONG
10
UNITED KINGDOM
11
MALAYSIA
12
GERMANY
13
OTHERS
GRAND TOTAL INCLUDING
OTHERS
JAN - JUNE
2012
474,685
354,259
195,504
150,749
92,648
114,269
73,015
65,503
57,790
57,181
49,788
34,189
423,926
2,143,506
JAN - JUNE
2013
585,282
364,506
209,812
199,157
103,286
86,076
86,290
68,430
65,696
60,234
54,154
37,025
460,645
2,380,593
GROWTH
RATE
23.30%
2.89%
7.32%
32.11%
11.48%
-24.67%
18.18%
4.47%
13.68%
5.34%
8.77%
8.30%
8.66%
11.06%
Source: Arrival/Departure Cards and Shipping Manifests
91

93. International Visitor Arrivals 2013 per Month
500,000
18.0%
15.5%
436,079
450,000
418,108
411,064
2013
Percentage Change, RHS
417,392
12.5%
361,925
400,000
2012
377,879
375,083
369,073
362,062
349,779
350,000
14.0%
323,725
321,930
16.0%
14.0%
12.0%
300,000
11.3%
10.0%
250,000
8.0%
200,000
8.0%
6.1%
6.0%
150,000
4.0%
100,000
2.0%
50,000
-
0.0%
Jan
Feb
Mar
Apr
May
Jun
92

94. Visitor Receipts (in US$ Million)
12,000.0
10,774.6
CAGR = 29.6%
10,000.0
8,297.7
8,000.0
6,391.4
CAGR = 5.2%
6,000.0
4,864.0
3,817.8
4,000.0
2,994.0
2,428.7
2,236.0
2,490.2
2008
2009
2010
2,000.0
0.0
ACTUAL
2011
2012
2013
2014
2015
2016
PROJECTED
*CAGR – cumulative average growth rate
93

95. Strategic Directions
National Tourism Development Plan (NTDP) 2011 - 2016
1. Develop and market competitive tourist products
and destinations
2. Improve market access, connectivity and
destination infrastructure
3. Improve institutional governance and human
resources
94

96. 1. Develop and market competitive tourist products
and destinations
(NTDP 2011 – 2016 Strategic Directions)
Product Portfolio
Nature
Tourism
Cultural Tourism
Sun and Beach
Tourism
Leisure and
Entertainment
Tourism
MICE & Events Tourism
Health,Wellness, and
Retirement Tourism
Cruise and Nautical
Tourism
Diving & Marine Sports
Tourism
Education Tourism
95

97. 1. Develop and market competitive tourist products
and destinations
(NTDP 2011 – 2016 Strategic Directions)
PRODUCT – MARKET STRATEGIES
PRESENT
MARKETS
PRESENT
Market Penetration
NEW
Product Development
Aggressive promotion strategies
Quality improvement strategies
targeted to Japan, South Korea,
that seek to increase daily tourist
USA, China to increase the number
expenditure through higher quality
of overnight visitors.
tourist products and services.
Main Strategy
NEW
Market Development
Diversification
Aggressive promotion strategies
targeted to Australia, Singapore,
Malaysia, Canada markets to
increase the number of overnight
visitors. Niche Strategy
Product development and
diversification strategies to
increase the average tourist length
of stay.
Secondary Strategy
96

98. 2. Improve market access, connectivity and
destination infrastructure
(NTDP 2011 – 2016 Strategic Directions)
DOT-DPWH Road Infrastructure Program
In Php Million
Developed the Tourism
Road Infrastructure Project
(TRIP) Prioritization Criteria
Endorsed for approval by
the Tourism Coordinating
Council 167 road projects
with total of 598kms worth
Php12.0Bn for FY 2013
Budget
Organized capacity building
for CTWG and RTWGs
97

99. Air Seat Entitlements and Utilization 2012
MARKETS
Korea
Japan
China
Taiwan
Australia
Singapore
Hong Kong
Canada
Malaysia
United Kingdom
Germany
India
Indonesia
Thailand
Vietnam
TOTAL
SEAT ENTITLEMENTS
PH
FOREIGN
1,482,000
1,482,000
1,856,400
1,856,400
702,000
702,000
522,600
522,600
312,000
208,000
2,280,044
2,280,044
1,367,600
1,367,600
109,200
109,200
354,640
354,640
218,400
218,400
109,200
109,200
109,200
109,200
156,000
156,000
355,680
355,680
312,000
312,000
PH
1,177,800
533,624
617,760
239,358
250,068
882,544
958,880
109,200
355,680
0
0
99,112
147,368
313,976
122,304
10,246,964 10,042,964
5,807,674
ENTITLEMENT UTILIZATION
%
FOREIGN
79.47%
1,339,624
28.75%
247,520
88.00%
182,936
45.80%
178,204
80.15%
95,368
38.71%
721,136
70.11%
897,468
100.00%
0
100.29%
346,840
0.00%
0
0.00%
0
90.76%
0
94.47%
0
88.27%
158,600
39.20%
0
56.68%
4,167,696
%
90.39%
13.33%
26.06%
34.10%
45.85%
31.63%
65.62%
0.00%
97.80%
0.00%
0.00%
0.00%
0.00%
44.59%
0.00%
41.50%
98

100. Volume of Flights, Passengers and Visitors per International Airport
January – June (2012 – 2013)
2012
International
Airports
Manila
Kalibo
Cebu
Clark
Davao
Iloilo
2013
% Share of
% Share of
Total
Visitors from
Total
Total Number Visitors from
Total
Number of
of
Total
Number of Total Number
Passengers Passengers
Flights
of Passengers Passengers Flights
18,945
3,498,656
45.60%
20,839
3,683,137
46.60%
864
127,162
99.50%
1,083
158,740
99.80%
2,392
376,577
79.10%
2,789
429,126
81.30%
1,913
208,690
46.70%
2,590
289,749
44.10%
76
12,014
35.10%
54
7,879
46.20%
4
377
100.00%
131
14,681
12.70%
International
Airports
Manila
Kalibo
Cebu
Clark
Davao
Iloilo
Flights %
Difference
2012 - 2013
10.00%
25.30%
16.60%
35.40%
-28.90%
3175.00%
Passengers %
Difference
2012 - 2013
5.30%
24.80%
14.00%
38.80%
-34.40%
3794.20%
99

101. Room Capacity 2012
Destinations
Northern PH
Available
Room
Number of
Establishments
New Major Accommodation Facilities in 2012
Fairmont Hotel and Raffles Suites
71,804
2,248
NCR
31,790
320
Central Luzon
15,024
489
Other Regions
24,990
1,439
61,978
3,220
Western Visayas
15,200
635
Central Visayas
27,447
1,306
Dohera Hotel – Cebu
Other Regions
19,331
1,279
Microtel Accropolis – Quezon City
28,922
1,405
Northern Mindanao
8,113
380
Southern Mindanao
9,613
404
11,196
621
162,704
6,873
Central PH
Southern PH
Other Regions
Total PH
Quest Hotels & Conference Ctr Cebu
Calyx Center – Cebu
Bellevue Resort – Bohol
Tunes Hotel – Cebu
Luxent Hotel – Quezon City
100

102. Room Projection from 2013 to 2016
Destination
Clusters
Island
Grouping
Room Supply
(Available + Pipeline)
Available in
2012
In the
Pipeline
Room Gap
In Critical
Destination
Clusters
Northern PH
71,804
8,206
16,025
Central PH
61,978
5,129
20,757
Southern PH
28,922
1,686
570
162,704
15,021
37,352
Total PH
Critical Cluster
Destinations
Room
Demand
Available
Room
In the
Pipeline
Room
Gap
Metro Manila &
CALABARZON
54,818
37,311
7,330
41,402
27,447
2,124
15,804
8,549
130
7,125
9,851
6,855
106
Current accommodation
development in the
pipeline covers only 40%
of room requirement
11,831
Bicol
Key demand cities
outside of Manila are:
Cebu, Panglao, Bicol,
Cordillera
10,177
Central Visayas
Manila will still need the
most rooms between
now and 2016
2,890
Cordillera
101

103. 3. Improve institutional governance and human
resources
(NTDP 2011 – 2016 Strategic Directions)
Programs
Regulatory Impact Assessment (RIA)
–
Assist pilot LGUs to design and implement a RIA of their local ordinances
affecting tourism
Hotel and Resort Quality Assurance and Accreditation System (HRQAAS)
–
Strengthen institutional arrangement for implementation of new standards,
rating system and mandatory accreditation
Tourism Industry Skills Development Program (TISDP)
–
Develop a human resources plan/ strategy for tourism
102

104. 3. Improve institutional governance and human
resources
(NTDP 2011 – 2016 Strategic Directions)
Programs
Improve the Philippines ranking in the World Economic Forum (WEF) Travel and
Tourism Competitive Index
Reduce business cost and improve compliance
Implement the new standards and accreditation system
Train 5,000 tourism workers
Certify 500 tourism professionals under the ASEAN MRA
103

105. Highlights of Major Accomplishments (January - June 2013)
Develop and market competitive tourist products and destinations
As of June 2013, 88 local development plans were
evaluated, monitored or updated.
Signed a “Statement of Intent on SMART Visa” during
the Travel and Tourism High Level Meeting in the
22nd WEF on East Asia.
Spearheaded the development of 89 tourism products
in the various regional destinations for January – June
2013
Signed an Agreement with the Department of
Environment and Natural Resources (DENR) under the
Biodiversity Partnerships Project (BPP), a project
funded by the Global Environment Fund.
104

106. Highlights of Major Accomplishments (January - June 2013)
Improve market access, connectivity and destination infrastructure
Signed convergence program with the
Department of Public Works and Highways with
a total budget of Php12Bn for 2013 and
Php14.4Bn for 2014.
– 167 Road projects, totalling to 598km of
roads leading to major and secondary
destinations.
Facilitated the lifting of the EU ban on PAL flying
to European destinations.
105

107. Highlights of Major Accomplishments (January - June 2013)
Improve institutional governance and human resources
As of June 2013, 110 capacity building programs for
local government units in the areas of planning,
product development, statistics, policy and
governance, as well as for industry workers to enhance
skills and competencies has already been done
Accredited 1,357 various tourism establishments as of
June 2013
Signed a Memorandum of Understanding with DSWD
and the USAID for the Implementation of the “OneStep Project”
Adopted a New Rating System based on international
standards for the Philippine hotel industry.
Signed a Memorandum of Agreement (MOA) with
media conglomerate ABS-CBN to launch Bantay
Kalikasan’s Green Initiative, a joint program involving
the government, media and academe.
106

108. Targets, 2013 - 2016
INDICATORS
2013
2014
2015
2016
International Tourists
Visitor Arrivals (Mn)
5.5
6.8
8.2
10.0
Length of Stay (nights)
8.0
8.0
8.0
8.0
4,914.0
5,431.0
5, 939.0
6,470.0
205.4
269.9
350.4
455.0
44.1
47.7
51.7
56.1
176.2
191.0
206.9
224.2
4.7
4.7
4.7
4.7
Average Daily Expenditure (Php)
2,580.0
2,593.0
2,739
2,922
Domestic Receipts (Php Bn)
1,298.6
1,409.2
1,607.1
1,852.1
Average Daily Expenditure (Php)
Visitor Receipts (Php Bn)
Domestic Tourists
Domestic Travellers (Mn)
Domestic Trips (Mn)
Length of Stay (nights)
107

109. Economic Impact Projection 2013 - 2016
INDICATORS
2013
2014
2015
2016
Gross Domestic Product
Total Visitor Receipts
(Php Bn)
Tourism GVA (Php Bn)
Share to GDP (%)
1,504.0
1,679.1
1,957.5
2,307.1
748.3
835.4
974.0
1,147.9
6.7
7.0
7.8
8.7
4.9
5.4
6.3
7.4
13.0
14.2
16.2
18.8
Employment
Tourism Employment (Mn)
Share to National
Employment (%)
108

110. 109

111. Energy
Secretary Carlos Jericho L. Petilla
Department of Energy
110

112. Energy Reform Agenda (ERA)
“Energy Access for More”
A key priority of government to mainstream access of
the greater majority to reliable energy services and fuel,
most importantly, local productivity and countryside
development
Good Governance thru stakeholder participation,
multi-sectoral partnership and use of information and communications technology (ICT)
Ensure
Energy Security
Achieve Optimal
Energy Pricing
Develop a
Sustainable
Energy System
Promote Transparency
Initiatives, Implementation and Information
111

113. Power Sector Reform
Issued implementing rules and regulations for National Electrification Administration
(NEA) Reform Act of 2013
Launched Retail Competition and Open Access on 26 June 2013 (RCOA)
Operationalized policy support for the Interim Mindanao Electricity Market (IMEM)
Reformed ailing electric cooperatives through implementation of strict compliance
mechanism including power generation companies
Continued oversight in the Operation and Governance of the Wholesale Electricity
Spot Market (WESM) Rules
112

114. Luzon Supply-Demand Outlook 2013-2020
Megawatts
On Available Capacity:
Apr-May 2015:
Projected Deficit of
184MW
Mar-Jul 2016:
Projected Deficit of
240MW to 635MW
On Available Capacity +
Committed*:
Apr-Jun 2017:
Projected Deficit of
200 to 450MW
Mar-Dec 2018:
Projected Deficit of
270 to 940MW
Notes
Demand curve as plotted includes total of peak demand and required Reserve Margin (RM) i.e. 4% regulating reserve and contingency and
dispatchable reserve requirement
4.2% peak demand growth rate resulted from observed 0.6 elasticity ratio of demand for electric power with national economic growth
applied to 7% GDP growth rate (GR) target for 2013-2015.
4.8% peak demand growth rate resulted from observed 0.6 elasticity ratio of demand for electric power with national economic growth
applied to 8% GDP growth rate (GR) target for 2016-2020.
Assumed 6.6% average forced outage of the total dependable capacity
* Committed projects are those which are in various stages of construction and have complied with all permitting / licensing requirements from all concerned agencies and
local government units; also, they are those which have achieved financial closure.
113

115. Megawatts
Visayas Supply-Demand Outlook 2013-2020
On Available Capacity:
Nov-Dec 2014:
Projected Deficit of 30
to 90MW
Apr-Dec 2015:
Projected Deficit of
80MW to max 220MW
On Available Capacity +
Committed:
Dec 2015: Projected
Deficit of 60MW
Apr-Jun 2016:
Projected Deficit of 70
to 100MW
Dec 2017-Dec 2018:
Projected Deficit of
120 to 305MW
Notes
Demand curve as plotted includes total of peak demand and required Reserve Margin (RM) i.e. 4% regulating reserve and contingency and
dispatchable reserve requirement
7 % peak demand growth rate resulted from observed 1 elasticity ratio of demand for electric power with national economic growth applied
to 7% GDP growth rate (GR) target for 2013-2015.
8 % peak demand growth rate resulted from observed 1 elasticity ratio of demand for electric power with national economic growth applied
to 8% GDP growth rate (GR) target for 2016-2020.
Assumed 7% average forced outage of the total dependable capacity
114

116. Mindanao Supply-Demand Outlook 2013-2020
Megawatts
On Available Capacity:
2013: Projected Deficit
of 50 to 110MW
2014: Projected Deficit
of 50 to 190MW
2015: Projected Deficit
of 120 to 280MW
Notes
Demand curve as plotted includes total of peak demand and required Reserve Margin (RM) i.e. 4% regulating reserve and contingency and
dispatchable reserve requirement
5.6% peak demand growth rate resulted from observed 0.8 elasticity ratio of demand for electric power with national economic growth
applied to 7%GDP growth rate (GR) target for 2013-2015.
12.8 % peak demand growth rate resulted from observed 1.6 elasticity ratio of demand for electric power with national economic growth
applied to 8%GDP growth rate (GR) target for 2016
8% peak demand growth rate resulted from observed 1 elasticity ratio of demand for electric power with national economic growth applied to
8% GDP growth rate (GR) target for 2017-2020
Assumed 3.41% average forced outage of the total dependable capacity
115

117. Megawatts
Mindanao Supply-Demand Outlook 2013-2020
On Available Capacity +
Committed:
Nov-Dec 2017:
Projected Deficit of
20 to 50MW
2018: Projected
Deficit of 50 to
200MW
Notes
Demand curve as plotted includes total of peak demand and required Reserve Margin (RM) i.e. 4% regulating reserve and contingency and
dispatchable reserve requirement
5.6 % peak demand growth rate resulted from observed 0.8 elasticity ratio of demand for electric power with national economic growth
applied to 7%GDP growth rate (GR) target for 2013-2015.
12.8% peak demand growth rate resulted from observed 1.6 elasticity ratio of demand for electric power with national economic growth
applied to 8% GDP growth rate (GR) target for 2016
8% peak demand growth rate resulted from observed 1 elasticity ratio of demand for electric power with national economic growth applied to
8% GDP growth rate (GR) target for 2017-2020
Assumed 3.41% average forced outage of the total dependable capacity
116

118. Interventions on the Mindanao Supply Situation
Recommendations
Status
Operate Illigan Diesel Power Plant
(IDPP)
Currently running at 60MW and scheduled to be in full operations by October
2013 at 98MW
Interruptible Load Program (ILP)
Mechanism which allows for the compensation of customers of a distribution
utility (DU) for voluntarily taking itself off the grid during peak demand. With
Energy Regulatory Commission (ERC) approving the new rates based on
Davao Light’s petition, large customers will be encouraged to join.
Interim Mindanao Electricity Market
(IMEM)
Issuance of Department Circular (DC) 2013-01-001 dated 9 January 2013
which directed PEMC to develop and implement an IMEM
Target commercial operations by 26 September 2013
Modular Genset Scheme
Fastest way of deploying the needed generating capacity in the island
DOE has directed NEA to expediently implement the program
Will provide supply until new capacities come online by 2015
EO 137, “The Mindanao Modular Generator Sets Program”, promulgated
and its IRR already signed
Creation of One-Stop Shop
Appointed Investment Officers to facilitate the processing of applications,
permits and licenses of energy investors.
Develop Mindanao Energy Plan (MEP)
Proposed conduct of consultations is by September 2013
117

119. Interventions on the Mindanao Supply Situation
Recommendations
Privatization of Power Barge 101-104
Balo-I Flood Control Project
Status
Indicative bidding is by Q3 2013
DPWH will re-file to NEDA-ICC for the approval of the project
This will maximize the output of Agus 1 and 2 Hydroelectric Plants and
address flooding in Balo-I Plain
Agus 6 Unit 1 & 2 Uprating Project
PSALM Board has approved and confirmed the project implementation
including the realignment of budget from National Power Corp.- Operations and
Management Agreement – Maintenance and Other Operating Expenditures
(NPC-MOA MOOE) to PSALM. Indicative bidding is by Q3 while awarding is by
Q4 2013.
Reservoir Management of Pulangi IV
NPC is flushing bottom sluice gates to minimize water spillage during rainy
season and to address sediment buildup
Privatization of Agus-Pulangi Complexes
Under discussion of Joint Congressional Power Committee (JCPC)
Visayas-Mindanao Interconnection
Project
Feasibility Study was completed in March 2013. The target project completion
is by 2018
118

120. Indigenous Fossil Fuel Development
Production
Unit
2011
Gas
Bn Cubic Feet
2012
H1 2013
140.4
137.77
No. of Contracts
Supervised/Monitored
67.92
26
Condensate
Coal
Mn Barrels
5.1
4.75
2.32
Mn Metric Tons
(@10,000 BTU/lb)
6.9
7.4
2.9
71
11 Coal Operating Contracts awarded
3 Petroleum Service Contracts awarded and 1 endorsed to the Office of the President
119

121. Enhanced Renewable Energy Development
Feed-in-Tariff (FIT) System Highlights
–
FIT Rules approved by ERC on 12 July 2010 and took effect on 12 August 2010
–
ERC approved the FIT Rates on 27 July 2012
–
Issuance of Department Circular 2013-05-009 prescribing DOE Guidelines for the Selection Process of Renewable
Energy (RE) Projects Under FIT System and the Award of Certificate for FIT Eligibility
FIT Monitoring Board Summary (as of July 2013)
With Certificate of Confirmation of
Commerciality
For Conversion
Resource
No. of Projects
Capacity (MW)
No. of Projects
Capacity (MW)
Hydro
51
504.2
6
47.6
Wind
9
548.5
5
339.5
Solar
Biomass
11
10
160
76.7
3
1
80
1.1
81
1,289.4
15
468.2
Total
Note:
Department Circular No. 2009-07-0011 entitled “Guidelines governing a transparent and competitive system of awarding
renewable energy service/operating contracts and providing for the registration process or RE developers” is currently being
revisited to facilitate the processing of RE Applications.
Target date of completion of 249 pending RE applications is on November 2013
120

122. Promoted Energy Efficiency and Conservation (EE&C)
Actual Savings (in MMBFOE)
National EE&C Programs
2010
2011
2012
Information, Education and
Communication Campaign
3.45
4.56
4.16
Voluntary Agreements
3.60
3.24
3.41
14.27
15.3
18.37
Government Energy Management
Program (GEMP)
0.22
0.28
0.26
Energy Management Program
3.26
3.80
3.43
Phil. Energy Efficiency Project
-
0.29
0.50
Total Savings
24.80
27.48
30.13
Deferred Capacity Addition (MW)
1,104
1,222
1,341
Energy Standards and Labeling
MMBFOE – Million Barrels of Fuel Oil Equivalent
121

123. Household Electrification Program (HEP)
HEP is an ongoing program providing electricity to households
Year
2010
Luzon
Visayas
Mindanao
Total
648
167
1,935
2,750
2012 (1st Batch)
2,308
1,864
2,288
6,460
2012 (2nd Batch)
750
435
2,215
3,400
2013 (1st Half)
2,136
1,702
3,062
6,900
Total
5,842
4,168
9,500
19,510
122

124. Good Governance
Operationalized
www.kuryente.org.ph providing
public information on electricity
rates and generation capacity
Operationalized
www.wattmatters.org.ph providing
public information on energy
consumption wattage rating and
energy efficiency performance of
different household electrical
appliances
123

125. 2013 Onwards: Nurturing Sustainable Growth
Continuing Activities
– Household and Sitio Electrification
– Biofuels blending (E10 and B5 Mandate)
– Energy Supply Demand Outlook
– Energy efficiency and conservation through Standards and Labeling Program
– Renewable energy installation
– E-Trike (developmental and scale-up)
– Clean energy technologies (Euro 4)
– Web based availability of energy information
– Accelerated development of indigenous resources (Philippine Energy
Contracting Round 5)
Special Activities
– Mindanao power supply initiatives (Modular Genset)
– Improved grid reliability
124