Investment Grade Philippines: Seizing Opportunities to Achieve Inclusive Growth

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

1
Table of Contents
I. Macroeconomic Performance and Outlook........................................
Real Sector...................................................................................
Monetary, External and Financial Sectors....................................
Fiscal Sector
• Revenue Collection and Debt Management...........................
• Expenditure Management.......................................................
II. 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.......................................................
III. Philippines Sovereign Credit Ratings: Journey to Investment Grade.
IV. Profiles of Speakers and Panel Discussants......................................
V. Directory of Economic Agencies.........................................................
VI. Investor Relations Office Brochure.....................................................
2
3
17
29
42
54
55
73
89
110
127
138
144
153
166
187
190

2
I. Macroeconomic Performance and Outlook

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

4
2012 H1 2012 H1 2013
GDP Growth 6.8% 6.4% 7.6%
By Industrial Origin
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
By Expenditure
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: Fixed Capital 20.3 10.4 19.8 5.6 20.8 12.7
of which: Public Construction 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
Changes in Inventory (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)
Source: National Statistical Coordination Board
The Philippine Economy Sustained Robust Growth in H1 2013

5
Low and Stable Inflation
(%)
Sound Macroeconomic Fundamentals Supported this
Remarkable Performance
8.2
5.7
4.4
3.5 3.0 2.9
2.2 1.93.6
3.7 4.8
0.2
4.2 3.7
2.1
3.5
17.6 17.5
15.7 15.5 15.8
16.9
17.6 18.4
0.0
4.0
8.0
12.0
16.0
20.0
0.0
2.0
4.0
6.0
8.0
10.0
2005 2006 2007 2008 2009 2010 2011 2012
NPL Ratio, LHS
Real interest rates, RHS
CAR, RHS
Sustainable Fiscal and External Position
(%)
* As of June 2013 * As of Q1 2013
68.5
61.4
53.9
54.7
54.8 52.4 50.9 51.0 49.5
-2.6
-1.0
-0.2
-0.9
-3.7
-3.5
-2.0
-2.3
-0.9
-4.0
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2005 2006 2007 2008 2009 2010 2011 2012 2013*
NG Debt to GDP (LHS)
Fiscal Balance to GDP (RHS)
Favorable Interest Rate and Sound Banking System
(%)
52.7
44.1
37.1
31.3 32.6 30.1 27.0 24.1
22.8
1.9
4.4
4.8
2.1
5.6
4.5
3.2
2.9
5.3
-
1.0
2.0
3.0
4.0
5.0
6.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2005 2006 2007 2008 2009 2010 2011 2012 2013*
External Debt to GDP, lhs
Current Account to GDP, rhs
6.5
5.5
2.9
8.3
4.2
3.8
4.6
3.2
2.8
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2005 2006 2007 2008 2009 2010 2011 2012 2013*
Headline Inflation
Low-end Target
High-end Target
*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.

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

7
6.8-7.2%
Unemployment Rate
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
Where are we now?
Philippine Development Plan Targets by 2016
7-8%
Gross Domestic Product
22%
Investment/GDP ratio
Poverty Incidence down to
16.6%
(Millennium Development Goal: 2015)
We are on Track with Respect to our Economic Targets;
the Present Challenge is to Improve Social Outcome Targets

8
Source: Labor Force Survey, National Statistics Office
Particularly Employment Generation
Indicator 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
Wage and salary workers (%
share to total employment)
54.5 57.2 57.1 58.6
Unemployment Level (‘000) 2,859 2,826 2,847 2,994
Unemployment Rate (%) 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

9
64.08.9
12.8
14.3
NCR, Reg III and IV
Other Luzon
Visayas
Mindanao
2011
2012
And Poverty Reduction to Achieve Inclusive Growth
First Semester Poverty Incidence Among Population
(%)
*Philippine Development Plan Target
28.8 28.6 27.9
16.6
0
5
10
15
20
25
30
35
S1 2006 S1 2009 S1 2012 FY 2015
64.08.9
12.8
14.3
64.18.8
12.7
14.4
Poverty Incidence Among Population by Region
(%)
*

10
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
For the Midterm Assessment of PDP 2011-2016, We are Taking
Stock of Lessons Learned in the past 3 years

11
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
Thus, Positive Actions with Sectoral and Spatial Dimensions
will be Undertaken to Achieve Inclusive Growth

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

13
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
Given these Concrete Strategies, We are Confident that
Growth will Continue in 2013 and Beyond

14
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
Production
Expenditures
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
Supported by the Following Growth Drivers

15
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)
We also Remain Vigilant Against the Following Near-term Global
and Domestic Risks to Growth…

16
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
…while Taking Advantage of Opportunities

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

18
Policy Impact
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.
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.
Price stability and
non-inflationary
growth
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.
Strong external
position and stable
foreign exchange
rate
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.
Continued to champion financial learning and consumer protection.
Efficient, sound,
competitive and
inclusive financial
sector
Policy/Reform Milestones and Their Impact

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

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

21
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.
2012: 17.3
2012: 18.4
13
14
15
16
17
18
19
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.
Sound and Stable Banking System
1,822
4,19217.1
2.5
0
2
4
6
8
10
12
14
16
18
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total Loans Portfolio (LHS) 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
Quality of loan portfolio continues to improve
Total Loans Portfolio (Php Million) and Non-performing Loans
Ratio (%)
(Philippine Banking System)
Bank capitalization remains above regulatory standards
and international norms
Capital Adequacy Ratio
(Philippine Banking System)*

22
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Mar'13
No. of banking offices
No. of ATMs
State of Financial Inclusion in the Philippines
Improving overall physical network of Philippine banks
Number of Banking Offices and ATMs
2001 – March 2013
Expanding number of branches and ATMs
from 2009 to March 2013, especially in MIMAROPA and
selected regions in Mindanao
Regional Growth Rates (%) in the Number of
Banking Offices and ATMs,
2009 – March 2013
-40
-20
0
20
40
60
80
100
120
140
NCR
IlocosRegion
CagayanValley
CentralLuzon
CALABARZON
MIMAROPA
Bicol
WesternVisayas
CentralVisayas
EasternVisayas
ZamboangaPeninsula
NorthernMindanao
DavaoRegion
SOCOSKSARGEN
Caraga
CAR
ARMM
Growthrate(%)
Growth in the number of banks
Growth in the number of ATMs

23
1. Prudent monetary
policy
Inflation 3.2 percent 2.8 percent
(Jan-Aug)
4 ± 1 percent
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
3. Sound and stable
financial system
Capital Adequacy Ratio
(CAR), consolidated
basis (U/KBs)
18.4 percent
(End-2012)
n.a. Increasing
Non-Performing Loans
(NPL) ratio (banking
system)
2.5 percent
(End-2012)
n.a. Decreasing
ACTUAL
TARGET/
FORECAST
2012 2013 2013
BSP’s Performance

24
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

25Section 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.)
Policy, Regulation and
Supervision
Financial Education and
Consumer Protection
Data and Measurement
Financial Inclusion
Advocacy
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
Intensifying Efforts toward Financial Inclusion

26
a/ Based on projections adopted by the Development Budget Coordinating Committee (DBCC) on 3 July 2013
b/ Based on BSP projections presented during the Monetary Board meeting on 16 May 2013
1/ Cash remittances coursed through banks
p/ revised
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/
Macroeconomic Outlook for 2013

27
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

28
Monetary sector External sector Financial 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
Maintain market-
determined exchange rate
Keep comfortable level of
reserves
Continue to promote
external debt sustainability
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
BSP Policy Directions

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

30
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
In Php Bn
2011 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%
Non-Tax Revenues 157.9 131.2 165.5 5.5%
BTr Income 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%
% of GDP -2.0% -2.6% -2.3%
Source: Bureau of the Treasury

31
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
(2013/2012)Actual Program Actual
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%
Other Offices 6.9 7.2 7.5 8.8%
Non-Tax Revenues 89.4 69.7 93.1 4.2%
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%

32
Improved Fiscal Position
…through a combination of improved tax effort, reduction in interest cost and more efficient expenditure
2009
Actual
2012
Actual
2013
Adjusted
Tax effort (% of GDP) 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%

33
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
Excise Tax Collections
Based on Actual Payments Jan - Jun Growth Rate
(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%
The significant increase in collections came even with an equally significant drop in
the volume of cigarettes and alcohol produced in the market.
Source: Department of Finance
*Numbers may not add up due to rounding off
Sin tax law was implemented starting January 2013

34
Achieved Investment Grade from Major International Rating Agencies
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 Ba1/“Rating Under Review for Upgrade” (July 25, 2013)
R&I
JCRA
BBB-/Positive from BBB-/Stable (August 2, 2013): INVESTMENT GRADE
Upgraded to BBB/Stable from BBB-/Positive (May 7, 2013): INVESTMENT GRADE
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

35
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
50
75
100
125
150
175
200
225
250
275
300
8/6/2012 10/6/2012 12/6/2012 2/6/2013 4/6/2013 6/6/2013
Indonesia
Philippines
Thailand
Fitch Upgrade
S&P Upgrade
Bernanke
Statement
*Rating Under Review
Source: S&P, Fitch, Moody’s
Credit Rating S&P Fitch Moody’s
Philippines BBB- BBB- Ba1/RUR*
Thailand BBB+ BBB+ Baa1
Indonesia BB+ BBB- Baa3

36
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
US$1.8Bn
from offshore markets
Php48.5Bn
from domestic markets
Php48.5Bn
from domestic markets
Benefits to certain corporations:
Globe Megaworld & SMC
• 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)
• 10-year dollar bonds for
coupons lower than 5%
(4.25% & 4.875%,
respectively) issued in April
2013

37
2013 Outlook
Deficit to go down to 2.0% of GDP in line with the fiscal sustainability program
In Php Bn
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 18.1%
% of GDP 12.9% 13.5%
BIR 1,057.9 1,253.7 18.5%
BOC 289.9 340.0 17.3%
Other Offices 13.3 14.2 6.8%
Non-Tax Revenues 165.5 136.0 (17.8%)
BTr Income 84.1 57.7 (31.3%)
Privatization 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%

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

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

40
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
(241.4) (355.8) (175.1) (163.3) (158.3) (83.5) (100.8)
-3.1
-4.0
-1.8
-1.5
-1.3
-0.7 -0.8
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
100.0
2009 2010 2011 2012 2013 BESF 2013
Revised
2014 BESF
%ofGDP
PhpBillion
GFI – Government Financial Institution
LGU – Local Government Unit

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

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

43
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 %)
2.1
12.2
15.3
-39.5
29.8
36.2
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
2011 2012 2013 S1
GFCE Public Construction GDP
*GFCE – Government’s Final Consumption Expenditure

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

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

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

47
Major Government Spending Initiatives
Key investments for poverty reduction and equitable access to basic social services
K-12 Program
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)
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
Conditional Cash Transfer
Program
Universal Health Care
Program
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
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
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

48
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

49
Expenditure Management Reforms
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
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
Faster Budget Execution
Performance Budgeting
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
Transparency and
Participation
in the Budget Process
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
Significant expenditure management reforms have been initiated to implement the government’s
commitment towards a strong and healthy fiscal position over the medium-term

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

51
Inclusive Development and Employment Generation
Promoting a New Business Model
Government Support to Enterprise
Development for 2014
Driven by Communities and Small Entrepreneurs
Enabled by Micro Finance and NGOs
Businesses Enlightened by Shared Value
Promotion and Development of Small and Medium
Industries – Php750Mn
Shared Service Facilities – Php770Mn
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
The government, through the budget, seeks to promote a new business model

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

53
Aquino’s Legacy: Ensuring the Irreversibility of Reforms
Institutionalization Deeply embed reforms in the policies, systems and processes of government
(including legislation and leveraging technology)
Reform
Constituency
Build a strong constituency – CSOs, communities, private sector, etc. – to provide constant
support and demand for reforms
Concrete
Dividends
Ensure that reforms lead to concrete benefits to people, so that the reversal of beneficial reforms
will be politically and economically costly
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:

54
II. Sectoral Performance and Outlook

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

56
Improved Business Environment Attracted More Investments
BOI – PEZA Approved Investments (Php Bn)
Agency 2011 2012
Jan-Jun
2012 2013 % Growth
BOI 368.93 360.35 165.51 201.90 22.0
PEZA 288.34 311.95 43.61 83.69 91.9
TOTAL 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

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

58
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)
BOI-PEZA Approved Investments
An Upward Trend in the Number of Registered Regional
Operating Headquarters (ROHQ)/Regional Headquarters (RHQ)
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
2011 657.27 218.91 33.31%
2012 672.30 282.45 42.01% 29.03%
H1 2012 209.13 38.49 18.40%
H1 2013 285.59 91.91 32.18% 138.79%
Year Number of Registered
ROHQs/RHQs
% Growth
2010 20
2011 25 25%
2012 37 48%
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
Notable Foreign Investments in 2012 and 2013

59
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.
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.
Strong Investor
Confidence on Domestic
Business Climate
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.
Sustained Investor Confidence
BOI-Facilitated
Investment Inbound
Missions

60
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$15.5Bn and growth of 7.6%.
Top Markets
– Japan remained the PH’s top export market, with
exports up by 8.8%.
– Other export markets that also posted positive growth
for the first half of the year were Malaysia (44.5%) and
Korea (34.5%).
Top Export Markets H1 2013
In US$ billion
H1 2013 Exports
In US$ billion
4.0 3.7
4.3
4.0
4.9
4.5
1.5 1.5 1.8
1.6
1.7
2.0
2.5
2.3
2.6
2.4
3.2
2.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Jan Feb Mar Apr May Jun
Total Exports Electronics Non-Electronics

61
Current Bright Spots in Exports
*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
Export Outlook for 2013
ACTUAL** TARGETS
2011 2012 2013 2014 2015 2016
Value
(in US$ Bn)
Growth
Value
(in US$ Bn)
Growth
Value
(in US$ Bn)
Growth
Value
(in US$ Bn)
Growth
Value
(in US$ Bn)
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
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 best-
selling 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.
Export Targets: 2013 -2016*

62
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.

63
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)

64
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.
Doing Business in Free
Trade Areas (DBFTA)
Regional Interactive
Platform for Philippine
Exporters (RIPPLES)
Successful Trade
Missions
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).
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.
More Aggressive Export Promotion

65
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)
Industry Development
Program
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.
Policy Thrusts for 2013 and 2014

66
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
Philippine Business
Registry (PBR) and
Business Name
Registration System
(BNRS)
Business Permits and
Licensing Systems
(BPLS)
National Economic
Research and Business
Assistance Center
(NERBAC)
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.
Enabling Business Environment for Global Competitiveness

67
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:
– 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
Conformance to
International Standards
Enabling Business Environment for Global Competitiveness

68
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
Source: Department of Trade and Industry-Regional Operations and Development Group
Achieving Inclusive Growth through MSME Development
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

69
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.
Performance of Pilot Industry Clusters
2012 - H1 2013
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
TOTAL
(2012 – H1 2013)
Investments Php9,375.38Mn
Domestic Sales Php18,193.05Mn
Exports Sales US$7,681.06Mn
Jobs created 152,796
MSMEs Created 2,283
MSMEs Assisted 7,658
Trainings Conducted 561
Beneficiaries Trained 17,021
Nationwide Industry Cluster Capacity Enhancement
Program (NICCE)
Priority Industry Clusters

70
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 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
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.
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.
Shared Service Facilities (SSFs) SME Roving Academy

71
Fair Trade Law Compliance (January to April 2013)
*National Committee on Intellectual Property Rights
Source: Department of Trade and Industry’s First Semester 2013 Accomplishment Report
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.
Empowering Consumers
Total Number of DTI-Monitored Firms 45,553
Resolution Rate 78%
Amount of fines collected Php821,250

72
Consumer Complaints Resolution (January to March 2013)
Source: Department of Trade and Industry’s First Semester 2013
Accomplishment Report
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.
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.
Empowering Consumers
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
TOTAL 1,410 100.0 19,644 100.0

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

74
Midterm Milestones
Agriculture and Fisheries Sector
Achieved significant reduction in rice imports
Average annual
decline in rice
importation since
2010.
↓↓↓↓ 53.9%
Estimated forex
savings due to
decrease in
imports
US$1.4 Bn
6.9 %
Posted record harvests in rice
Average annual growth since 2010
18.0MMT
volume of production in 2012
Average,
2001-2010
2010/2011 2011/2012
Average,
2011-2012
Production
Growth
2.5% 5.8% 8.1% 6.9%
palay productiongrew by 8.1% in 2012, the highest recordsince 2000
in achieving 100% self
Improved rice self-sufficiency levels
94.4% 2012 rice self -
sufficiency
On-track
-
sufficiency by the end of
2013.
Tapped international niche market for rice
1
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 -04-17-09-
30-59/4169 -da-exceeds -100-mt-rice-export -target

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

76
Midterm Milestones
Maintained stable food prices
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
Further developed rural infrastructure
839.4 km better quality, concreted
FMRs constructed/rehabilitated
Farm-to-Market Roads
101,698 ha new areas generated
Irrigation Systems
89,275 ha areas restored
from 2011 to June 2013:
Maintained stable food prices
5.4
2.4
1.8
2011 2012 2013 (as of Aug)
Inflation Rates, Food and Non - Alcoholic Beverages
(2006=100)
Below the annual
PDP Target of
3% to 5%
Source: National Statistics Office (July 2013)

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

78
Agriculture and Fisheries Performance
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 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%
Source: Bureau of Agricultural Statistics 2013

79
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
Irrigation Network
Services
Farm-to-Market
Roads
Development
Agricultural and
Fishery
Equipment and
Facilities Support
Services
Constructed 28kms of concrete farm-to-market roads
Rehabilitated more than 150kms of existing farm-to-market roads
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
Department of Agriculture Accomplishments
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
Production
Support Services

80
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.
Department of Agriculture Accomplishments
Research and
Development
Funded/conducted about 1,800 research and development activities
Funded/established, upgraded, and maintained a total of 145 research facilities
Credit Facilitation
Services
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
Marketing Support
Services
Facilitated establishment of 5 trading post/ centers
Established 57 food terminals
Facilitated 33 Livestock Auction Markets (LAMs)
Regulatory
Services
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
Policy and
Planning Services

81
Sector Targets
2013 and Beyond
Attain and Sustain Self-Sufficiency in Rice
100%
by the end of 2013
Growth in Agriculture and Fisheries
Gross Value Added (GVA)
2013 2014 2015 2016
AF GVA
increased (%)
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
Maintain Stable Food Prices
Increase Agriculture Exports
3.5% to 4.5%
(or lower)
inflation rate of basic food commodities
10% or higher
Increase the total value of agriculture exports
Source: Philippine Development Plan – Results Matrix

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

84
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.
● 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
Key Strategies:
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
Commitments:

85
Establish Enabling Environment for Enhanced
Agriculture and Fisheries Competitiveness
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 majorcommodities
− 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
Commitments:

86
Increase Agriculture and Fisheries
Climate Resiliency
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.
Invest in climate-resilient irrigation infrastructures with improved
design standards and construction protocols Construct farm-to-
market 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
Commitments:

87
Focus Agro-Industries for Inclusive Growth
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
Establish coconut agro-industrial hubs

88
Focus Agro-Industries for Inclusive Growth
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
Develop fishery-based agro-industries

89
Tourism
Secretary Ramon R. Jimenez
Department of Tourism

90
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

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

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

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

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

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

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

97
DOT-DPWH Road Infrastructure Program
2. Improve market access, connectivity and
destination infrastructure
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

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

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

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

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

102
resources
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
Programs

103
resources
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
Programs

104
Highlights of Major Accomplishments (January - June 2013)
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.
Develop and market competitive tourist products and destinations

105
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.

106
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 “One-
Step 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.

107
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
Average Daily Expenditure (Php) 4,914.0 5,431.0 5, 939.0 6,470.0
Visitor Receipts (Php Bn) 205.4 269.9 350.4 455.0
Domestic Tourists
Domestic Travellers (Mn) 44.1 47.7 51.7 56.1
Domestic Trips (Mn) 176.2 191.0 206.9 224.2
Length of Stay (nights) 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
Targets, 2013 - 2016

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

110
Energy
Secretary Carlos Jericho L. Petilla
Department of Energy

111
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
“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
Promote Transparency
Initiatives, Implementation and Information
Energy Reform Agenda (ERA)

112
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

113
Luzon Supply-Demand Outlook 2013-2020Megawatts
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.
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.
On Available Capacity:
Apr-May 2015:
Projected Deficit of
184MW
Mar-Jul 2016:
240MW to 635MW
On Available Capacity +
Committed*:
Apr-Jun 2017:
200 to 450MW
Mar-Dec 2018:
270 to 940MW

114
Visayas Supply-Demand Outlook 2013-2020Megawatts
Notes
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
Nov-Dec 2014:
Projected Deficit of 30
to 90MW
Apr-Dec 2015:
80MW to max 220MW
Committed:
Dec 2015: Projected
Deficit of 60MW
Apr-Jun 2016:
Projected Deficit of 70
to 100MW
Dec 2017-Dec 2018:
120 to 305MW

115
Mindanao Supply-Demand Outlook 2013-2020Megawatts
Notes
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
2013: Projected Deficit
of 50 to 110MW
of 50 to 190MW
of 120 to 280MW

116
Mindanao Supply-Demand Outlook 2013-2020Megawatts
Notes
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.
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
Committed:
Nov-Dec 2017:
20 to 50MW
2018: Projected
Deficit of 50 to
200MW

117
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

118
Interventions on the Mindanao Supply Situation
Recommendations Status
Privatization of Power Barge 101-104 Indicative bidding is by Q3 2013
Balo-I Flood Control Project 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

119
Indigenous Fossil Fuel Development
Unit
Production
No. of Contracts
Supervised/Monitored
2011 2012 H1 2013
Gas Bn Cubic Feet 140.4 137.77 67.92
26
Condensate Mn Barrels 5.1 4.75 2.32
Coal
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

120
Enhanced Renewable Energy Development
Resource
For Conversion
With Certificate of Confirmation of
Commerciality
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 11 160 3 80
Biomass 10 76.7 1 1.1
Total 81 1,289.4 15 468.2
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
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
FIT Monitoring Board Summary (as of July 2013)

121
Promoted Energy Efficiency and Conservation (EE&C)
National EE&C Programs
Actual Savings (in MMBFOE)
2010 2011 2012
Information, Education and
Communication Campaign
3.45 4.56 4.16
Voluntary Agreements 3.60 3.24 3.41
Energy Standards and Labeling 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
MMBFOE – Million Barrels of Fuel Oil Equivalent

122
Household Electrification Program (HEP)
Year Luzon Visayas Mindanao Total
2010 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
HEP is an ongoing program providing electricity to households

123
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

124
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

125
High Impact Solar Projects
Scheme:
DOE to bid out for the installation, operation and maintenance
Commercial Cost of Electricity – must be lower than the prevailing consumer price
by Php2.00/kWh
Type of Private Schools* Number of Schools Capacity (MW)*
College/University 587 59
High School 5,299 530
Elementary 10,170 1,017
Total 10,056 1,606
* Maximum capacity for distributed generation is 100 kWp/installation

126
High Impact Hydro Projects
No. of Electric Cooperatives Potential Cost (Php Bn)
78 2,066MW 310
Scheme:
DOE to validate potential hydropower sites and match with supply requirement
of Rural Electric Cooperatives (RECs).
PNOC-Renewables Corporation (PNOC-RC) to do the Feasibility Study and
Detailed Engineering Design while development, construction and installation
will be a partnership among PNOC-RC, Electric Cooperatives and private
sector.
– Joint Venture Agreement (JVA) = 50% Rural Electric Cooperative
→ Up to 10% PNOC-RC
→ Up to 40% Private Investment
Secured Power Sales Agreement /Electricity Sales Agreement between RECs
and JVA

127
Road Transport and Flood Management
Department of Public Works and Highways
Secretary Rogelio L. Singson

128
Status of Philippine Road Network
Improved Road Condition
Legend
Road Classification
National Arterial
National Secondary
215,088 kms Total Overall Road Network
31,598 kms Total National Road Length
0.72 km/sq. km Road Density
0.26 km/sq. km Paved Road Density
0.27 Overall Paved Road Ratio
0.80 Paved Road Ratio for Nat’l. Roads

129
Better Infrastructure is Improving Country’s Competitiveness
Better quality roads are being noticed
Quality of Roads
1 = extremely underdeveloped; 7 = extensive and efficient by international standards
Ranking of the Philippines significantly improved from no. 114 (2010-2011) to no. 87 (2013-2014) in the quality of roads indicator in the WEF Global
Competitiveness Index
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Malaysia Thailand Indonesia Vietnam Philippines
2010-2011 2011-2012 2012-2013 2013-2014

Investment Grade Philippines: Seizing Opportunities to Achieve Inclusive Growth

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