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Moving as
One Nation Towards the 21st Century Philippines |
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29 March 2008, Pasay City |
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Presidential Adviser on National Security Secretary Norberto Gonzales; Senator Juan Miguel Zubiri; Interim National President Atty. Arecio R. Rendor, Jr.; Interim National Chairman Councilor Michael B. Fernandez; members of the Philippine Councilors’ League; ladies and gentlemen, good morning. It is my honor to provide you an update on the Super Regions and the development thrusts of the government. Vision of a modernized society Allow me to start by first walking you through the president’s vision and roadmap for the country. President Arroyo, in her 2007 State of the Nation Address envisioned the Philippines as a modernized society in 20 years. This is the central theme of the Medium-Term Philippine Development Plan (MTPDP) and the Medium-Term Public Investment Program (MTPIP). What have we done so far? Since the start of her administration, the president has embarked on a mission to strengthen the country’s economy, which will empower it to fuel its development plan. Over the past six years, government efforts to strengthen the economy have already borne fruit. The Philippines has moved to a markedly higher growth plane. Inflation has moderated and job creation has surged. According to NEDA, from 2001-2007, the Philippines had the fastest yearly economic growth, the smallest increase in prices, and the highest increase in employment in the last 20 years. Through our fiscal reform measures, government has earmarked more funds for government infrastructure and social programs, allowing many of the ten poorest provinces in 2003 to escape the clutches of poverty in 2006. Self rated poverty declined to 56.38% under the arroyo administration as compared to that of the previous administrations. Last year, the Philippine economy posted remarkable accomplishments. The economy grew by 7.3%, the highest economic growth in 31 years. We kept inflation rate at 2.8% in 2007, the lowest in 21 years. We experienced the lowest budget deficit in 10 years at p9.4 billion through the implementation of the reformed value added tax (RVAT) and other tax reforms. The windfall profits from our fiscal reforms we immediately invested in social projects, beginning with education. • The target of 1:50 classroom to student ratio has also been achieved as compared to 1:60 in the previous administration. A total of 14,665 classrooms were built as of December 31, 2007 and 10,556 classroom units were repaired/rehabilitated, exceeding the 6,000 annual target. • The desired 1:1 textbook to pupil ratio has been achieved in elementary for the 5 priority subjects from 1:5 in 2000. • 74% or over 5,000 of the 6,832 public high schools now have computers and 1,149 of them have internet access. • Assistance to private schools was also provided in the form of increased study subsidies to deserving students who wish to enroll in private high schools. For 2007, some 607,085 students directly benefited from the P3 billion government assistance to students and teachers in private education (GASTPE) program from only 383,482 in 2006, a hefty 58% increase. To provide more jobs to our people, specifically the poorest of the poor, the government supported micro and small and medium enterprises (MSMES). For the period 2004 to 2007, MSMES generated more than 2.1 million new jobs through the release of P203.61 billion loans to more than 3.65 million clients. P86.89 billion was released to 3.6 million active microfinance clients and SME accounts, generating 1.56 million new jobs; while P116.72 billion was released to 57,505 SME accounts under the SULONG Program, supporting 540,000 new jobs. Majority of the microfinance beneficiaries are farmers (33%), workers in the informal sector (27%) and fisherfolk (23%). Other beneficiaries include the urban poor, indigenous people, and the youth. Government made housing more affordable by lowering the interest rates on pag-ibig’s housing loan packages. Interest rates on P300,000 packages and below were lowered from 9% to 6%. And packages from P300,000 to P750,000 were lowered from 10% to 7%. Meantime, P50 billion will be used for socialized housing from 2008 to 2010. To battle hunger and ensure that the poor have access to affordable basic commodities, the Tindahan Natin program and the Barangay Food Terminal (BFT) were launched. The Tindahan Natin program, which provides affordable basic food commodities at a discount, provided some 8 million poor households in Metro Manila and in many depressed areas and far flung barangays of the country with rice at P18.25 per kilo and P4.25 per pack for instant noodles through 7,964 tindahan natin outlets. The BFTs were also opened in NCR, Regions 1, 2, 3, 5, 6, 7, 8, 11 and 12 reaching 101.3% or 6,000 more than the target number of beneficiaries. These BFTs also sell fresh and more affordable vegetable, meat, fish and fruits. For those who cannot access the Tindahan Natin and BFTs, government also implemented the Food For School Program. Providing rice to families suffering from severe hunger through their school children, the program as of December 2007, distributed 793,630 bags of rice to 2.6 million severely hungry children in the 10 food poorest provinces, the NCR, and the 4th, 5th and 6th class municipalities of the 44 poorest provinces in the country. Meanwhile, through a 21% increase in the appropriation for health insurance from P2.9 billion in 2006 to P3.5 billion in 2007, we were able to expand health insurance coverage under Philhealth. This year, total appropriation for health insurance stands at P4.5 billion. Under the sponsored program of Philhealth, 3 million indigent families are now enrolled, a five-fold increase from the 619,014 indigent families enrolled in 2001. The fight against graft and corruption has become one of the flagship projects of the government. Strict administrative measures, legislative action, and greater people participation were employed in pursuit of good governance and fighting corruption. Lifestyle checks, procedural reforms aimed at cutting red tape in government transactions, aggressive prosecution of officials suspected of having enriched themselves through illegal means, and networking with civil society stakeholders were set in place. As a result, a total of 512 “big fish” cases have been filed in the Sandiganbayan. Meantime, the budget of the ombudsman was doubled from 2002 to 2007, which allowed it to hire an additional 200 investigators and 43 prosecutors that led to a remarkable ten-fold increase in its conviction rate from 6% in 2002 to 60% in 2007. The P2 billion anti-graft fund of concerned agencies, the biggest funding ever for anti-corruption in the country, is expected to yield even more remarkable results. To address the leakages resulting from previous procurement processes and long before the present controversy, government passed the Government Procurement Reform Act (RA 9184) in 2003, which institutionalized the Government Electronic Procurement System (GEPS), established under E.O. 40 in 2001. GEPS offers enhanced functionalities to support a more efficient, convenient, and transparent procurement process. The savings generated from the use of the GEPS from 2001 to 2006 was estimated at P414 million. The president also created the Pro-Performance System in 2006 through E.O. 564 and 564-A to closely monitor the priority infrastructure projects using the three core indicators of physical development performance and quality, financial performance, and timeliness. Also emphasized is transparency in project implementation. The Procurement Transparency Group was also created in 2007 under E.O. 662 and 662-A, to promote greater transparency and accountability in government procurement by organizing and increasing the presence of civil society organizations in procurement activities of the government. To date, the PTG has established partnerships with 25 bids and awards committees (BACs) of implementing agencies, and an additional 50 BACs in 24 national government agencies and LGUs. They are currently monitoring 32 priority projects. In the revenue collection front, government instituted several programs designed to cut tax leakages. Flashed are some of the programs implemented by the BIR, Bureau Of Customs, and Department Of Finance to intensify their campaign against tax evaders, smugglers and erring revenue officials. Last Tuesday, the president announced the creation of two more bodies to promote government and civil society partnership in monitoring collection efforts, gather lifestyle and corruption information, and follow-up major evasion or smuggling cases. These are the PORTAL or Ports Transparency Alliance of the BOC and the PARTNER or Partnership And Efficient Revenue Service of the BIR. Under portal, the BOC shall build institutional linkages with trade partners, businessmen, church, and civil society groups through partnerships defined by a Framework Of Cooperation To Undermine Smuggling or FOCUS. PORTAL shall monitor particular smuggling-prone commodity like oil (Oilwatch) and foodstuffs (Agriwatch). PARTNER shall form collaboration between the BIR and the taxpayers. Super regional development Increased revenues, the stable economic outlook, and strong investor confidence in the country also allowed government to pursue an ambitious infrastructure development program. Implemented through the Super Regions development strategy, this groups selected regions and provinces by their economic strengths and provides for massive infrastructure investments to stimulate economic growth, spread development away from an inequitable concentration in metro manila, and set the country in step with its Asian neighbors. The following super regions were formed with their respective development themes: Ø The North Luzon Agribusiness Quadrangle (NLAQ), which covers the Ilocos and Cordillera regions and the northern part of Central Luzon, shall focus on agribusiness development; Ø The Luzon Urban Beltway (LUB) shall serve as a globally competitive logistics and services hub spanning from Central Luzon to the CALABARZON down to the provinces of Occidental Mindoro, Oriental Mindoro, and Marinduque; Ø The Central Philippines, with its central theme of tourism development, is composed of the entire Bicol region, the Visayas, as well as the provinces of Palawan, Romblon, and the islands of Camiguin, and Siargao; Ø The Mindanao Agribusiness Super Region, which covers the whole of Mindanao and the Autonomous Region Of Muslim Mindanao (ARMM), shall also focus on agribusiness development; and Ø The Cyber Corridor, which spans from Baguio to Davao, shall promote information and communications technology and the knowledge economy. Each super region’s development thrust shall be realized through the implementation of infrastructure and social projects. The president, in close consultation with the business community, local government units, and civil society, identified 149 priority infrastructure projects to be completed by 2010. Super region projects In the North Luzon Agribusiness Quadrangle, the government, with the support of local government units and the private sector, shall invest in a total of 23 priority infrastructure projects designed to promote agribusiness, improve the delivery of agricultural produce from farms to markets, and increase farmers’ incomes. Of the 23 priority projects, the Dingalan Port and the La Trinidad Processing Plant have been completed. We expect the completion of the Casecnan irrigation project, which will irrigate 81,920 hectares of farmland and serve 26,920 farmers, this December. In addition, by June 2008, under the nationwide small irrigation program, 96 small irrigation projects will be completed, which will irrigate 13,497 hectares of farmland. For the Luzon Urban Beltway (LUB), we are implementing 38 priority infrastructure projects to promote a globally competitive logistics and services center, improve and integrate the transport infrastructure system, and enhance the delivery of goods and services. As of end-February this year, four (4) projects in the lub have been completed, namely, the Cawit port in Boac, Marinduque; the Lucena port in Quezon; the Batangas port in Batangas City; and the Subic port in Zambales; while the Subic-Clark-Tarlac expressway, Southern Tagalog Arterial Road, Porac Interchange, and KAMANAVA flood control projects are due for completion this year. Stating the obvious, Central Philippines’ competitive advantage lies in its unique and lush greenery, bio-diverse ecosystem, beaches, and other natural wonders. The government’s thrust is to invest in its natural competitive edge through 53 priority infrastructure projects, such as railway, roads, ports, airports, power and flood control projects. Thus far, ten (10) priority projects have been completed, namely the New Iloilo and New Bacolod-Silay airports, the Bohol Circumferential Road, and the ports of Jagna, Maasin, Tubigon, Ubay, Pantao, Siquijor, and Limasawa. This year, we expect the completion of 16 more projects, which includes the access road to the Bacolod-Silay Airport, nine (9) other ports, four (4) airports, and two (2) power projects. Rightfully named as the food-basket of the Philippines, Mindanao accounts for 40% of the country’s food requirements and contributes more than 30% to the national food trade. It is only rational that the Mindanao Super Region’s central development theme be agribusiness development. The government is investing in 27 major priority infrastructure projects including airports, ports, roads, power, and major and small irrigation projects, which will not only support agribusiness development, but also provide greater access to Mindanao. To date, three (3) of these projects have been completed, namely the Diosdado Macapagal Bridge in Butuan, the 210-Mega Watt Clean Coal Plant in PHIVIDEC, and the 950-Kilo Volt Photovoltaic Power Plant in Cagayan De Oro. We expect some seven (7) more projects to be completed this year. This includes the Dinagat Island Road and the airports in Zamboanga City, Butuan, Pagadian, Dipolog City, Ozamis City, Cotabato City, and Laguindingan. The government shall also complete 271 small irrigation projects, which will provide water to 11,191 hectares of farmland and 33 farm-to-market roads worth P252.59 million in Mindanao. In the Cyber Corridor, the government is prioritizing two (2) major infrastructure projects. These are the BIR Revenue Dash Board and the Cyber Education Project. In addition to these, the government is also developing ICT hubs across the country. The National Broadband Network (NBN) project, which provides for a computer and telecom network that will link national government agencies, state corporations, financial institutions, and local governments, was initially a project under the cyber corridor until it was cancelled on October 2, 2007 due to allegations of bribery. Not one cent was spent on the project. Had it been implemented, the NBN project would have cut government telecom costs, allowed information services to be brought to far-flung villages not served by private networks, and allowed information services to reach all municipalities through 300 base stations and nearly 26,000 connections. Pro-performance system To accelerate the implementation of these infrastructure projects and to ensure that they are completed on time and in the most cost-effective and transparent manner, the president created the Pro-Performance System or PPS. The president further mandated the PPS to “be merciless in ripping through undue obstacles in the way of overdue priority infrastructure projects.” A Steering Committee implements the PPS. Composed of representatives from the business sector and civil society organizations, namely: · The CEO and Chairman of the Philippine Chamber Of Commerce and Industry Ambassador Donald Dee, representing the business sector; · Kapisanan ng mga Brodkasters ng Pilipinas (KBP) Vice Chairman Ruperto “Jun” Nicdao Jr., representing the media; · Ambassador Marita Magpili-Jimenez, representing the international development organizations; · Jose Rizal University President Dr. Vincent Fabella, for the NGOs; · National Youth Commission Chairman Richard Nalupta, for the youth sector; · Caritas Manila Executive Director Rev. Father Anton Pascual, for the religious sector; and · Binalonan Mayor And Union of Local Authorities of the Philippines (ULAP) President Ramon Guico, for the local government units. The PPS is committed to helping ensure the full and transparent implementation of the government’s priority infrastructure projects so that our people can fully partake of the fruits of national development. We have all witnessed the efforts of the president in empowering our society and in bringing development closer to people but the national government cannot do it alone. What we have achieved so far could not have been possible without the support and cooperation of the local government units as a whole. In behalf of the national government, we thank you. We hope that the Philippine councilors’ league, as members of ULAP, represented in the pro-performance system, will continuously support us in monitoring these projects especially those in your jurisdiction; in addressing project bottlenecks, such as right-of-way issues; and in promoting transparency and good governance in their implementation. We also need your support in promoting MSMEs. You can partner with us in government to come up with programs to provide training and assistance to micro and small entrepreneurs. You can also help by sharing with your constituents the good news about government’s MSME program. Many are still not aware of the microfinance and SULONG programs of the government making them prey to loan sharks. My dear friends, ladies and gentlemen, we are facing greater challenges ahead. Climate change and global economic challenges are now threatening our economy and food security. These global forces are putting more strain on our poor as prices of commodities like rice and fuel increase. More than ever, we need to unite as a nation and come up with solutions to our most pressing problems. More than ever, we need sobriety and an open mind to discern truth from hype. At this juncture, we need each and everyone to do his or her share to preserve and sustain our development achievements. Together, let us continue to work as a team as we build the foundations of a strong republic. Let us move as one nation towards the 21st century Philippines. Thank you. |
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