A four percent decrease in the strength of the Communist New Peoples Army and a 10.92 decline in that of the Abu Sayyaf Group highlighted the achievements of the Department of National Defense in 2004.

In its Yearend Accomplishment Report submitted to Malacanang, the DND also cited its gains in other internal security concerns involving the Civilian Armed Forces Geographical Units (CAFGU), the integration program with the Moro National Liberation Front (MNLF), the Indigenous People (IP) and the Cordillera People Liberation Army (CPLA), and the territorial defense of the Kalayaan Island Group and Scarborough as well as the protection of the country’s exclusive economic zone (EEZ).

As the lead agency in disasters, calamities and civilian population protection, the DND facilitated the release of financial assistance from the national Calamity Fund amounting to P6.187 billion in 581 incidents of major disasters. It also received donations worth P113.11 billion, which were in turn given to victims of typhoons in the form of cash, checks, equipment and goods through various civilian agencies.

The DND likewise continued its participation in various nation-building efforts of the government like civil infrastructure projects including the completion of 220 school buildings in support to President Gloria Macapagal-Arroyo’s commitment in her State of the Nation Address (SONA).

In the year just past, the DND helped uplift the living conditions of marginalized groups through its subsidiary units.

The AFP conducted 861 disaster, relief and rescue operations, with 43, 677 beneficiaries in the different calamity-stricken areas of the country.

In addition, the Philippine Veterans Administration Office marked 2004 with reforms aimed at further advancing the welfare of Filipino veterans and their dependents.

The DND also implemented several reform measures in human resource development through the holding of local and foreign courses and seminars. It has streamlined procurement procedures and modernization process through consultations with stakeholders.

A Defense Planning Guide 2004 was approved to provide a framework for translating government direction and presidential policy into doable, efficient and effective programs that would deliver affordable, sustainable and credible national defense and security services to the nation.

Other major accomplishment of the DND in 2004:

• Completed the integration of 5,530 officers and enlisted personnel (EP) in compliance to the Final Peace Agreement with the MNLF. The MNLF integrees have been assigned as regular and organic personnel of the 1^st, 4^th and 6^th Infantry Divisions, 53^rd and 54^th Engineer Brigades, all in Mindanao.

A total of 23 projects amounting to P53.2 million that had earlier earned the nod of the Investment Coordination Committee (ICC) have been approved by the National Economic and Development Authority in 2004, including various policy recommendations of the Committee on Tariff and Related matters (CTRM).

In its Yearend Accomplishment Report submitted to Malacanang, the NEDA board likewise approved 10 projects involving request for time or loan validity extension.

Through the CTRM’s recommendation and confirmation by the NEDA board, President Gloria Macapagal-Arroyo issued, among others, the following executive orders to lower domestic prices and cost of production:

• EO 299 reducing the in-quota tariff rate from 30 percent to 10 percent on 10,000 metric tons of pork to be imported not later than last June 7, 2004;

• EO 300 reducing the duty from 3 percent to zero on soya bean meal, pre-mixes, feed supplements and additives and lysine in 2004

• EO 313 implementing the grant of zero and 1 percent duty on importation of machinery and equipment, spare parts and accessories thereof by new and expanding export and domestic oriented enterprises registered with the Board of Investments;

• EO 295 modifying the nomenclature and tariffs on sugar products;

• EO 312 expanding the coverage of the Automotive Export Program;

• EO 375 increasing the duty on hot rolled coils (HRC) and cold rolled (CRC) from 3 percent to 7 percent once the HRC and CRC lines of Global Steel Works International Inc. are in commercial operation as determined by the CTRM.

Of the ICC-approved projects, 18 are funded by Official Development Assistance (ODA), 15 of which are loan assisted (P65.01 million) and three grant-assisted (P2.47 million).

Seven projects amounting to P4.55 million are to be financed through other sources.

The ICC likewise approved five projects involving private sector participation (P71.58 million), namely, the Mass Rail Transit (MRT) Line 7 Unsolicited Proposal (21 km MRT line and 17 km road) and the Metropolitan Waterworks and Sewerage System (MWSS) treated bulk water project.

The NEDA Secretariat also coordinated the formulation of the Medium Term Philippine Development Plan (MTPDP) 2004-2010, which included the assessment of the MTPDP 2001-2004, and drafting of the memorandum circular and planning guidelines.

To promote the anti-poverty thrusts of the Macapagal-Arroyo administration, NEDA worked closely with the National Anti-Poverty Commission (NAPC) and the Department of Social Welfare and Development (DSWD) by providing technical assistance in drafting policies and programs to implement Kapit-Bisig Laban sa Kahirapan (KALAHI) Program

As NAPC’s partner agency, NEDA continued to serve as the lead agency for the NAPC-NGO Sectoral Council and also participated actively in various NAPC inter-agency bodies.

The NEDA also served as member of both the steering committee of the World Bank (WB)-assisted KALAHI-Comprehensive and Integrated Delivery of Social Services (CIDSS) project of the Department of Social Welfare and Development (DSWD).

The KALAHI-CIDSS is the most comprehensive community driven development project focused on the 40 poorest provinces and targets 5,000 poorest barangays in these provinces.

We must maintain the sense of urgency of our efforts to put our fiscal house in order.

The advent of the New Year is a good start for us to sustain the momentum we gained during the last quarter of 2004 and translate it into a full-blown executive-legislative partnership for urgent change.

Malacanang today announced that President Gloria Macapagal-Arroyo will attend an emergency summit in Jakarta that would discuss urgent measures to address the gargantuan problems brought about by the tsunami that hit 11 nations in South Asia and Africa last December 26 and killed tens of thousands of people.

In a statement she read at the Ceremonial Hall in Malacanang, the President said that the holding of a tsunami summit in Jakarta "is urgent and significant not only to step up the international humanitarian response to the multi-nation disaster, but to enhance regional disaster-preparedness through consolidated information sharing and early warning system."

The President said that the country’s modernization plan for its own forecasting system must be aligned with the regional effort under the theme "all for one and one for all."

She said that the Philippines has seen and even experienced the high cost of being caught unaware of devastating calamities, referring to the killer landslide that recently hit the provinces of Quezon, Aurora, Nueva Ecija and the Bicol Region.

"Disaster mitigation must now be everyone’s and every nation’s business. Once more, each nation must act locally but think globally," the President said.

Press Secretary and Presidential Spokesman Ignacio R. Bunye said that the President is expected to leave on Wednesday, January 5.

Bunye said that the summit, to be attended by some world leaders, including heads of the Association of Southeast Asian Nations (ASEAN), will be held on January 6.

Reports said that the emergency summit, to be hosted by Indonesian President Susilo Bambang Yudhoyono, will be attended by United Nations Secretary General Kofi Annan, US Secretary of State Colin Powell, Japanese Prime Minister Junichiro Koizumi, and New Zealand Prime Minister Helen Clark.

President Gloria Macapagal-Arroyo today declared Friday, January 7, as a National Day of Prayer and Mourning for the thousands of victims of the deadly tsunami that struck neighboring countries last December 26, 2004.

In a press conference held this morning at the Ceremonial Hall in Malacanang, the President said she will lead the national prayer and mourning a day after she returns to the country from attending the emergency summit on tsunami in Jakarta. The summit is set on January 6.

"I’d like to announce that we’re going to have a National Day of Prayer and Mourning for those who perished in the tsunami on Friday," the President said.

The President said she believes that it is appropriate to hold the day of prayer and mourning on Friday, the same day that Christians will be observing the first Friday mass, so that our Muslim brothers can also offer their prayers to the victims of tsunami.

But prior to the day of prayer, the President has requested evangelical groups to lead the nation in offering prayers tomorrow for the same intention.

President Gloria Macapagal-Arroyo today said that there would be no changes in the Cabinet "right now" but stressed that it is her "prerogative" to reorganize her official family as she sees fit.

"I have a continuing authority and prerogative to do Cabinet changes as I see it fit. … The end of the year is always a time for assessing performance targets, picking the best people for the right position, so it’s a continuing thing. But I have nothing to announce right now," the President said in a press conference in Malacanang.

Press Secretary and Presidential Spokesman Ignacio R. Bunye today said that Filipinos could hope and look forward to a better 2005.

In a radio interview, Secretary Bunye said that his forecast is based on many developments that happened during the last three months that could give momentum to the country’s progress.

According to Bunye, one of these developments was the Supreme Court’s decision to declare the Mining Act as constitutional. He explained that SC’s decision will greatly benefit Filipinos since the country is ranked fifth in the list of nations having huge mineral deposits.

Bunye added that the National Economic and Development Authority (NEDA) has estimated that these mineral deposits are worth a lot bigger compared to the country’s external debt.

" Kaya kung made-develop itong mineral resources ay kayang-kaya nating mabayaran ang ating external debt (That’s why if we will develop these mineral resources, we can use these to pay the country’s external debt)," Bunye stressed.

Bunye also said that President Gloria Macapagal-Arroyo’s decision for the government to take over the Ninoy Aquino International Airport (NAIA) Terminal 3 was a wise move and is being recognized not only inside but also outside of the country as a strong act of political will.