Report on the INVEST Support on the Launching of the Cities Development Initiative in INVEST Partner Cities: , de Oro and

Investment Enabling Environment (INVEST) Project

Submitted to

U.S. Agency for International Development/ Office of Economic Development and Governance under Contract No. AID-492-C-11-00005

November 15, 2012

By Orient Integrated Development Consultants, Inc. (OIDCI) FSS Building, 89 Scout Castor Street, City, Philippines Tel No.: 374.0757; Fax. No. 413.232 Table of Contents

List of Acronyms ………..……………………………………………………………….. iii

I. Introduction ……………………………………………………….……………………… 1 II. Launching of the Cities Development Initiative...... 2 A. ...... ………………………………………..………………… 2 B. ...... …………….…………………………………….. 3 C. City ……………………………………………………………..... 4

LIST OF TABLES

Table 1. Profile of Participants in the CDI Launch in Iloilo City...... 2 Table 2. Profile of Participants in the CDI Launch in Batangas City ………………… 3 Table 3. Profile of Participants in the CDI Launch in Cagayan de Oro City ……….. 4

ANNEXES

Annex A. Program of the CDI Launch in Partner Cities …………………………….. 5 Annex B. Pictures of the CDI Launch in Partner Cities ...…………………………….. 8 Annex C. Scene-Setters Prepared for the CDI Launch ………..……….…..………... 11

ii

List of Acronyms

ADB Asian Development Bank BOSS Business One-Stop Shop BPLO Business Permit and Licensing Office BPLS Business Permit and Licensing Systems CDI Cities Development Initiative CDO Cagayan de Oro COR Contracting Officer‟s Representative CTO City Treasurer‟s Office DILG Department of the Interior and Local Government DTI Department of Trade and Industry FSIC Fire Safety Inspection Certificate IBC Iloilo Business Club INVEST Investment Enabling Environment Project LEIPO Local Economic and Investment Promotion Officer MOU Memorandum of Understanding NEDA National Economic and Development Authority NGA National Government Agency OroChamber Oro Chamber of Commerce and Industry US USAID United States Agency for International Development

iii I. Introduction

The Investment Enabling Environment Project (INVEST) is a United States Agency for International Development (USAID)-supported two-year initiative that aims to assist the Philippine government to: (A) lower the transaction cost in doing business at the local level particularly involving business permits and licensing systems (BPLS), and (B) increase the flow of private investments and the number of business start-ups in the Philippines.

As part of its Year 1 Work Plan, INVEST assisted the USAID in launching the Cities Development Initiaitive (CDI), a new USAID program that aims to partly address the disparity in economic growth across geographical locations by assisting first class cities to act on the binding constraints to local economic development. It employs a holistic approach in delivering USAID assistance in the areas of economic growth and investment, education, health, and environment. The implementation of the CDI shall start in cities identified by USAID for the INVEST.

The CDI Launch in the three partner cities of INVEST – Batangas, Iloilo and Cagayan de Oro – formally unveils and introduces the new and more integrated set of USAID assistance to Philippine cities. The CDI Launch was capped by the signing of a Memorandum of Understanding (MOU) between the USAID and the concerned city governments.

This report presents the highlights and other relevant information on the CDI Launch in the three partner cities of INVEST. It records Deliverable No. 1 - Assistance to USAID in the Selection of Target Cities under Component 3 of the INVEST Project‟s Work Plan.

1 II. INVEST Support to the Launching of the Cities Development Initiative

A. Iloilo City

The CDI was first launched in Iloilo City on March 2, 2012 to coincide with the US Embassy‟s major event entitled: “America in 3D Program - Diplomacy, Development and Defense“1 which was held at the SM City Iloilo City from March 2 to 4, 2012. The USAID, through the COR, organized the CDI Launch, while the INVEST provided financial support.

1. The Program

The original plan to have the US Ambassador as the guest of honor during the event did not materialize due to unforeseen circumstances. Hence, the United States Deputy Chief of Mission, Ms. Leslie A. Bassett, signed the MOU on behalf of the US Government and delivered the “Expression of Support” for the Project. The Philippine Government, on the other hand, was represented by Senator and Department of the Interior and Local Government (DILG) Undersecretary Austere A. Panadero. The President of the Iloilo Business Club (IBC), Mr. Antonio Jon, gave the closing remarks. The Program for the event is found in Annex A while selected pictures taken during the event are presented in Annex B.

2. Profile of the Participants

A total of 41 participants attended the CDI Launch in Iloilo City, mostly composed of city officials, representatives from national government agencies, and the private sector (Table 1). There were more male than female participants to the event.

Table 1. Profile of Participants in the CDI Launch in Iloilo City Type of Institution Female Male Total City Officials 0 6 6 Other National Government 2 3 5 Agencies Private Sector 8 13 21 Business Sector 5 6 11 Academe 3 7 10 Media 1 4 5 USAID 2 0 2 INVEST 2 0 2 TOTAL 15 26 41

1 The event featured the following: (a) musical performances from various artists, (b) presentation of American culture, (c) free seminar on visa application, (d) briefing on how to study in the US, (e) free sports clinic, and (f) dance lessons.

2

3. Expenses Incurred for the Launch

A total of P59,274.96 was expended for the CDI Launch in Iloilo City.

B. Batangas City

1. The Program

The CDI Launch in Batangas City, which was held on March 3, 2012, was planned to coincide with the visit of Mr. Donald Steinberg, USAID Deputy Administrator, to the Philippines to attend the annual meeting of the Asian Development Bank (ADB). A ceremonial signing of an MOU between USAID and the city government capped the event. Expressions of support were delivered by Undersecretary Merly Cruz of the Department of Trade and Industry (DTI), who represented the National Government, and Mr. Faustino Caedo who represented the private sector in Batangas City. The Program of the Launch is presented in Annex A while pictures of the event are found in Annex B.

2. Profile of Partiicipants

Fifty-nine (59) participants attended the event, mainly composed of representatives from the business sector, officials from national government agencies (NGAs) whose subnational offices are located in Batangas, and city officials (Table 2). Unlike the CDI Launch in iloilo City, there were more female than male participants in the Batangas City CDI Launch.

Table 2. Profile of Participants in the CDI Launch in Batangas City Type of Institution Female Male Total City Officials 5 6 11 Other National Government Agency 7 5 12 Private Sector 14 14 28 Business Sector 5 8 13 CSO 2 3 5 Academe 7 3 10 USAID 2 1 3 INVEST Project 3 2 5 TOTAL 31 28 59

3. Expenses Incurred for the Launch

A total of P74,980.17 was expended for the CDI Launch in Batangas City.

3 C. Cagayan De Oro City

1. The Program

Cagayan de Oro (CDO) was the last of the INVEST partner cities where the CDI was launched. No less than His Excellency Harry K. Thomas, US Ambassador to the Philippines, graced the event. Similar to the first two CDI events, an MOU was signed between USAID and the city government. The National Governemnt was represented by Undersecretary Austere Panadero of the DILG and Undersecretary Zenaida Magalaya of DTI who both delivered expressions of support to the CDI. Congressman of the Second of CDO and Ms. Ma. Teresa Alegreo, the current President of the Oro Chamber of Commerce and Industry (OroChamber) expressed their appreciation to the USAID for the assistance it was extending to the city and articulated their support to ensure the success of the CDI in CDO. The Program for the Launch is presented in Annex A while some of the pictures taken during the event are displayed in Annex B.

2. Profile of Partiicipants

A total of 130 participants attended the CDI Launch in CDO. Most of the participants came from the city government (28%) with all members of the local Sanggunian (legislative assembly) present. The other participants were representatives of the private sector (24%), NGAs (17%) and local media (38%). There were notably more males than females who attended the event.

Table 3. Profile of Participants in the CDI Launch in Cagayan de Oro City Type of Institution Female Male Total City Officials 12 25 37 Other National Government Agency 12 10 22 Private Sector 11 20 31 Business Sector 7 19 26 Academe 4 1 5 Media 8 17 25 USAID 1 3 4 INVEST Project 4 2 6 Others 2 3 5 TOTAL 50 80 130

3. Expenses Incurred for the Launch

A total of P166,628.42 was expended for the CDI Launch in Cagayan de Oro City.

4 Annex A. Program of the CDI Launch in Partner Cities

1. Iloilo City

Signing of Memorandum of Understanding between USAID/Philippines and the City Government of Iloilo to Launch the

Cities Development Initiative (CDI)

Friday, March 2, 2012, 3:30pm Rio Function Room, Hotel del Rio, Iloilo City

Program

3:30 – 4:00pm Registration

4:00 – 4:15pm Opening Remarks and Introduction of Guest of Honor

Hon. Gloria D. Steele USAID/Philippines Mission Director

4:15 – 4:25pm Messages

Hon. Leslie A. Bassett United States Chief of Mission

Hon. Jed Patrick E. Mabilog , Iloilo City

4:25 – 4:35pm Signing of the Memorandum of Understanding

4:35 – 4:45pm Expressions of Support

Senator Franklin M. Drilon Senate of the Philippines

Hon. Austere A. Panadero Undersecretary, Department of the Interior and Local Government

4:45 – 5:00pm Press Conference 2. Batangas City

5

Signing of Memorandum of Understanding between USAID/Philippines and the City Government of Batangas to Launch the

Cities Development Initiative (CDI)

Thursday, May 3, 2012, 12:30pm Mabini Hall, Pontefino Hotel, Batangas City

Program

12:30 – 01:10pm Registration

01:10 – 01:15 Opening Remarks and Introduction of Guest of Honor

Hon. Gloria D. Steele USAID/Philippines Mission Director

01:15 – 01:25 Messages

Hon. Donald Steinberg USAID Deputy Administrator

Hon. Vilma Abaya Dimacuha Mayor, Batangas City

01:25 – 01:35 Signing of the Memorandum of Understanding

01:35 – 01:45 Expressions of Support

Hon. Merly Cruz Undersecretary, Department of Trade and Industry

Mr. Faustino Caedo President, Batangas Province Chamber of Commerce and Industry

01:45 – 02:00 Press Conference

Master of Ceremonies: Mr. John Avila Program Management Specialist, USAID Philippines

3. Cagayan de Oro

6

Signing of Memorandum of Understanding between USAID/Philippines and the City Government of Cagayan de Oro to Launch the

Cities Development Initiative (CDI)

Friday, 29, 2012, 10:30am Platinum, The Malberry Suites Business Hotel, Cagayan De Oro City

Program

09:30 –10:00am Registration 10:30 – 10:35 Opening Remarks and Introduction of Guest of Honor

Hon. Gloria D. Steele USAID/Philippines Mission Director 10:35 – 10:45 Messages

His Excellency, Hon. Harry K. Thomas, Jr. US Ambassador to the Philippines

Hon. Vicente Y. Emano Mayor, Cagayan de Oro City

10:45 – 11:00 Signing of the Memorandum of Understanding

11:00 – 11:30 Expressions of Support

Hon. Rufus Rodriguez Representative, 2nd District, Cagayan de Oro City

Hon. Zenaida Maglaya Undersecretary, Department of Trade and Industry

Hon. Austere A. Panadero Undersecretary, Department of the Interior and Local Government

Ms. Ma. Teresa Alegrio President, Oro Chamber of Commerce and Industry

11:30 – 12:00nn Press Conference

Master of Ceremonies: Mr. John Avila Program Management Specialist, USAID Philippines

7 Annex B. Pictures of the CDI Launch in Partner Cities

1. Iloilo City

8 2. Batangas City

9 3. Cagayan de Oro City

10 Annex C. Scene-Setters Prepared for the CDI Launch

1. Batangas City

Event Briefing Memorandum

Event Cities Development Initiative (CDI) Launching in Batangas City

Date and Time Thursday, 3 May 2012, 12:30 P.M. to 13:30 P.M.

Venue Hotel Pontefino or Batangas City Convention Center

Participants United States Government: Donald Steinberg, Deputy Administrator, USAID Gloria Steele, Mission Director, USAID Philippines Reed Aeschliman, Deputy Mission Director Thomas Rojas, Economist, USAID Philippines John Avila, Program Management Specialist, USAID/Philippines

GPH Counterparts: Secretary ,Department of the Interior and Local Government Secretary Gregory Domingo, Department of Trade and Industry Hon. Vilma A. Dimacuha, City Mayor of Batangas City

City Department Heads/Officials Atty. Victor Reginald Dimacuha, Secretary to the Mayor Mr. Felipe Baroja, City Administrator Eng‟r. Januario Godoy – City Planning and Development Coordinator Mr. Erick Anthony Sanohan - Local Economic and Investment Promotion Officer Mrs. Teresa Geron – City Treasurer Eng‟r. Adela Hernandez – City Engineer Dr. Rosanna Carmelita Barrion – City Health Officer Mrs. Ditas Rivera – City Business and Licensing Permit Officer Mr. Oliver Gonzales – City Environmental Officer Mr. Rod dela Roca - Disaster Risk Reduction Officer

Regional Line Agencies Dr. Edgardo Gonzaga, Region IV-A, DOH-CHD Ms. Agnes M. Espinas, OIC- Regional Director, Region IV-A, National Economic and Development Authority

11 Ms. Marilou Quinco-Toledo, Region IV-A Director, Department of Trade and Industry Mr. Ruel Gonzales, Provicial Director of Batangas, Department of Trade and Industry Mr. Ariel O. Iglesia, Assistant Regional Director, Region IV-A, Department of the Interior and Local Government Ms. Victoria Amor M. San Gabriel, Batangas City Director, Department of the Interior and Local Government

Batangas City Private Sector Mr. Faustino Caedo – President, Batangas Province Chamber of Commerce and Industry Mr. Andrew Tan – President, Batangas Filipino-Chinese Chamber of Commerce and Industry Mr. Nonoy Ebora, President, Batangas Bankers‟ Association Dr. Angelito Bagui, Chairman, Soro-Soro Ibaba Development Cooperative

Academic Community Dr. Nora L. Magnaye, President, Batangas State University Mr. Peter Laurel, President, Lyceum of the Philippines University Dr. Hernando B. Perez, President, Mr. Wilfredo G. Jacinto, President, Golden Gate College Dr. Arlene D. Castor – President, Westmead International College Sr. Mary Lydia Ebora, R.G.S., President, St. Bridget‟s College Atty. Teodulfo A. Deguito, Acting Administrator, Colegio ng Lungsod ng Batangas

Civil Society Organizations Mr. Rene Lopez – Kalusugan, Karunungan, Kabuhayan, Kalikasan (KAAKBAY) Ms. Aileen Grace Montalbo – JCI Batangas Caballero Mr. Johnny Aldover – Batangas Lions Club Mr. Edwin Reyes – Shell Foundation Mr. Teddy Bolivar – Malampaya Foundation Representative of Rotary Club of Batangas

Local Media People‟s Courier Dyaryo Veritas Headlines Ang Dyaryo Natin Batangas POST Southern HERALD BALIKAS Star PANTAS People‟s Courier Public Forum Tribune Post Batangas City Public Information Officer

12 INVEST Project Ms. Ofelia Templo, Chief of Party, INVEST Project Mr. Nicasio Angelo Agustin, Investment Strategist, INVEST Project Mr. Jedel Ervin Tabamo, City Program Adviser, INVEST Project

Purpose The launching of the Cities Development Initiative (CDI project will trigger USAID assistance to Batangas City, one of three cities under the project, which will be formalized through the signing of a Memorandum of Understanding (MOU) between the Mayor of Batangas City and USAID”s DA.

Background Batangas City has been recognized as an Urban Growth Corridor, the logistics hub of the South and a gateway to other regions in the country, particularly Region IV-B (MIMAROPA) and Region VI. The significant role of the city in fostering growth in Region IV-A influenced the development of the Port of Batangas as an alternative port to Manila, which was constructed through Official Development Assistance (ODA) from the Japanese International Cooperation Agency (JICA). Infrastructure support to the city was also accelerated thru the development of the Southern Tagalog Arterial Road (STAR) leading to the Port of Batangas

However, the potential growth of the city has yet to be realized. The utilization of the port has been estimated at 30 percent. The development of industries in the city has been constrained by inappropriate policies both at the national and local levels and lack of effective plans that would stimulate private investments in the city. There are regulatory and governance issues that need to be addressed to make the city more competitive and to attain its potential as a „Port City‟ of the Region.

The CDI provides a holistic approach for providing assistance to the City, combining the economic and investment-related interventions with the social, environmental, and governance assistance that would enable to city to attain inclusive growth. USAID assistance is summarized in the Memorandum of Understanding (MOU) which will be signed between the City Government and the USAID. Preliminary discussions on the CDI have been conducted, with the USAID fielding an Assessment Team, headed by Mr. Reed Aeschliman on April 19-20. Various meetings were conducted with the City Officials, Business Groups, Universities and Colleges, Civil Society Organizations, and Regional Line Agencies.

The Batangas City officials, the local business chambers, the academic community and the civil society organizations welcome the proposed partnership between the local government with the Government of the United States of America

Sequence of Events/Scene Setter You will arrive at the Hotel Pontefino at approximately 12:20 P.M. You will be greeted by USAID Deputy Mission Director Reed Aeschliman and Site Officer Thomas Rojas (Office of Economic Development and Governance, USAID/Philippines). You will be escorted into the meeting room where the CDI Launching will take place. [Where will Mr. Stenberg eat lunch? He can come at 11:45, lunch will be served and program can start at 12:20]

13 Suggested Sequence of Events

12:20 PM Arrival at Hotel Pontefino 12:30 PM Opening Remarks and Introduction by Gloria Steele 12:35 PM Message by D. Steinberg Message by Secretary Jesse Robredo, Department of the Interior and Local 12:40 PM Government [to be invited] Message by Secretary Gregory Domingo, Department of Trade and Industry [to 12:45 PM be invited] Signing of the Memorandum of Understanding (USAID and Batangas City) 13:00 PM Photo opportunity 13:10 PM Message by Mayor Vilma Dimacuha Expression of Support 13:15 PM Mr. Faustino Caedo, Batangas Province Chamber of Commerce and Industry Expression of Support 13:20 PM Mr. Andrew Tan, Batangas Philippine- Chinese Chamber of Commerce and industry 13:25 PM Culmination of Program

Suggested Remarks

Gloria Steele Secretary Jesse Robredo of the Department of the Interior and Local Government, Secretary Gregory Domingo of the Department of Trade and Industry, Honorable Vilma Abaya-Dimacuha – City Mayor of Batangas City, city officials, the Presidents and Officials of the Batangas Province Chamber of Commerce and Industry and Batangas Province Chinese Chamber of Commerce and Industry, Presidents of Universities and Colleges, representatives from the banking sector and cooperative, and officials of the regional offices of the DILG, DTI and NEDA, ladies and gentlemen, good afternoon.

Thank you for joining us to mark this important occasion. The launching of the Cities Development Initiative in Batangas City recognizes the potential of the city as a growth center in Region IV-A. We are privileged to have with us by Mr. Donald Steinberg, the Deputy Administrator at the United States Agency for International Development (USAID) to witness the partnership between the Batangas City government and USAID. D. Steinberg Secretary Robredo of the DILG, Secretary Domingo of the DTI, Honorable Vilma Abaya-Dimacuha and city officials, the Presidents and Officials of the Batangas Province Chamber of Commerce and Industry and Batangas City Chinese Chamber of Commerce and Industry, Presidents of Universities and Colleges, representatives from the banking sector and cooperative, and officials of the regional offices of the DILG, DTI and National Economic and Development Authority, ladies and gentlemen, good afternoon.

14 Today marks a momentous occasion between the United States of America and Batangas City as it formalizes the implementation of the Cities Development Initiative (CDI). The CDI is the initiative of the USA through the USAID to localize the attainment of inclusive broad- base economic development as contained in the agreement between the government of the Philippines and USA under the Partnership for Growth which was signed last November 2011 by no less than the US Secretary of State Hillary Clinton.

As Batangas City partners with the US government, it strives to overcome key challenges and constraints which hinder attainment of its economic potential being a port city.

Through the CDI, we hope to contribute in generating more investment in Batangas City by creating an enabling environment that aims to reduce regulatory capture and by capacitating the city to promote investments thru stronger links with the private sector. To complement the investment-related assistance, USAID is providing a holistic approach that will address other growth and sectoral concerns such as education and health and the environment,. Thru USAID assistance, we look forward to a more effective governance that would lead to a greater contribution of the city to national growth and development.

Much has been done by the City Government in addressing its key issues and constraints that hinder economic growth. With the aid of the US government, we hope that we will be able to better facilitate processes and introduce technologies and systems that will help lead to a sustainable and competitive Batangas City.

I commend City Mayor Vilma Dimacuha for enjoining us in this initiative. Indeed, this agreement strengthens the partnership of the city with the US government in ensuring that the City realize its potential as an economic hub for the region.

I am confident that after our five-year engagement with you, the city will be able to generate the needed investments and increased economic activity that will enable it to realize its potential as a premier port city of Southern !

Maraming salamat po!

15 2. Cagayan de Oro City

Event Briefing Memorandum

Event Briefing Memorandum

Event Cities Development Initiative (CDI) Launching in Cagayan de Oro City

Date and Time Friday, June 29, 2012, 12:30 pm to 2:30 pm

Venue Platinum Room, Mallberry Suites, Cagayan de Oro City

Participants United States Government: HE Harry Thomas, Jr., US Ambassador to the Philippines Gloria Steele, Mission Director, USAID/Philippines Thomas Rojas, Economist, USAID/Philippines John Avila, Program Management Specialist, USAID/Philippines

GPH Counterparts: Secretary Jesse Robredo,Department of the Interior and Local Government Secretary Gregory Domingo, Department of Trade and Industry

City Officials and Department Heads City Mayor Vicente Y. Emano, Cagayan de Oro City (not sure) Vice-Mayor Ceasar Ian Acenas, Cagayan de Oro Congressman Jose Benjamin Benaldo, First District, Cagayan de Oro City Congressman Rufus Rodriguez, Second District, Cagayan de Oro City Annie Daba, Councilor, First District, Cagayan de Oro City Alden Bacal, Councilor, First District, Cagayan de Oro City Simeon Licayan, Councilor, First District, Cagayan de Oro City Jose Pepe Abbu, Councilor, First District, Cagayan de Oro City Adrian Barba, Councilor, First District, Cagayan de Oro City Roger Abaday, Councilor, First District, Cagayan de Oro City Dante Pajo, Councilor, First District, Cagayan de Oro City Alvin Calingin, Councilor, First District, Cagayan de Oro City Nadya Elipe, Councilor, Second District, Cagayan de Oro City President Elipe, Councilor, Second District, Cagayan de Oro City Ian Mark Nacaya, Councilor, Second District, Cagayan de Oro City Juan Sia, Councilor, Second District, Cagayan de Oro City Ramon Tabor, Councilor, Second District, Cagayan de Oro City Alexander Dacer, Councilor, Second District, Cagayan de Oro City Edgar Cabanlas, Councilor, Second District, Cagayan de Oro City Emmanuel Abejuela, Councilor, Second District, Cagayan de Oro City Kreena Vi Poquita, President, SK Federation, Cagayan de Oro City

16 Dometilo Acenas, Jr., President, Association of Captains, Cagayan de Oro City Atty. Leon M. Gan, Jr., City Administrator, Cagayan de Oro City Atinodoro Aserquia, City Assessor, Cagayan de Oro City Isidro Obligada, City Building Official, Cagayan de Oro City C/Insp. Ciriaco A. Talines, City Fire Marshall, Cagayan de Oro City Ierie Calingasa, City Health Officer, Cagayan de Oro City Emilio Rana, City Interior and Local Government Officer, Cagayan de Oro Maryanne Enteria, City Legal Officer, Cagayan de Oro City Isidro Borja, City Planning and Development Coordinator, Cagayan de Oro Juliet Glenda Valmorida, City Treasurer, Cagayan de Oro City Estrella Sagaral, Consultant for Development Planning and Local Economic and Investment Promotion Officer, Cagayan de Oro City

Regional Line Agencies Leon Dacanay, Jr., Regional Director, National Economic and Development Authority, Region X Nilo Castenares, Regional Director, Department of the Interior and Local Government Alfonso Alamban, Regional Director, Department of Science and Technology, Region X Linda Boniao, OIC-Regional Director, Department of Trade and Industry, Region X Eliza Pabillore, Provincial Director, Department of Trade and Industry, Oriental

City Private Sector Ma. Teresa Alegrio, President, Oro Chamber Jeffrey Ang, VP-Services Sector, Oro Chamber Antonio Uy, VP-Trade and Commerce, Oro Chamber Cerael Donggay, Corporate Secretary, Oro Chamber Ruben Vegafria, Past President and Trustee, Oro Chamber; Chairperson, Promote CDO Foundation Leoncio Ang, President, Cagayan de Oro Chamber of Industries Shirley Serate, President, OROBANKERS Club, Inc. Stephanie Caragos, President, CDO ICT Business Council

Academic Community Fr. Roberto C. Yap, SJ, Xavier University Atty. Casimiro B. Juarez, Jr., President, Capitol University Dr. Ricardo E. Rotoras, President, University of Science and Technology Dr. Mariano M. Letin, President, Liceo de Cagayan University

INVEST Project Ms. Ofelia Templo, Chief of Party, INVEST Project Mr. Nicasio Angelo Agustin, Investment Strategist, INVEST Project Mr. Ninfa Albania, City Program Adviser, INVEST Project

17 Purpose The launching of the Cities Development Initiative (CDI) Project will trigger USAID assistance to Cagayan de Oro City, one of three cities under the project. It will be formalized through the signing of a Memorandum of Understanding (MOU) between the Mayor of Cagayan de Oro City and the US Ambassador.

Background Cagayan de Oro City is the provincial capital city of . It lies along the northern coastline of the island of Mindanao in the country's southern portion.

Cagayan de Oro is known as the "City of Golden Friendship” and is considered the melting pot of Mindanao because of its accessibility, business growth, and tourist attractions. It is also a business hub of the region, which is considered as one of the most progressive and competitive cities in the country.

The City's economy is largely dependent on industry, commerce, trade, services and , which are the major sources of revenue of the City.

Concentrix and Arriba Telecontact are among the few call centers that have recently opened offices in the city. With the ongoing construction of the International Airport located in the Municipality of Laguindingan, business analysts predict the entry of more foreign and local investments as well as an increase in tourism activity, making Cagayan de Oro one of the chief cities in the southern part of the Philippines.

Other than the airport, Cagayan de Oro is a favorite destination among businessmen because of its stable peace and order, urban amenities (e.g. malls, telecommunications), the active private business sector, good banking system and credit facilities. The City is also strategically located in Mindanao in relation to international to domestic markets as well as transportation.

The development of Cagayan de Oro City suffered a setback with the onslaught of tropical storm Sendong on December 16, 2011, which caused widespread flash floods in Northern Mindanao. The total death toll in Northern Mindanao (including City and nearby regions) is estimated to be at least 500, as people failed to heed government warnings to evacuate vulnerable areas. At least 20,000 people stayed for an extended period in 10 evacuation centers in Cagayan de Oro. Development of permanent relocation sites is on-going while some families have already been relocated into their permanent dwelling places away from hazard and danger.

The CDI is envisioned to assist Cagayan de Oro recover from the economic backslide caused by Sendong. Its holistic approach of combining economic and investment-related interventions with social, environmental, and governance measures will be critical in assisting the City attain inclusive growth. USAID and the city government‟s partnership for under the CDI will be forged with the signing of a Memorandum of Understanding (MOU) on June 28, 2012. The event is the culmination of several preliminary discussions and assessments initiated by USAID with the city government and various stakeholders in the city since the start of the year.

Sequence of Events/Scene Setter The USAID delegation will arrive at the Cagayan de Oro Lumbia Airport at around 11:00 am. A team from the city will meet them at the airport. From the airport, the delegation will be brought directly to The Mallberry Hotel.

18 Upon arrival at the Hotel which is estimated at around11:30 a.m., lunch will be served at the Platinum Function Room of The Mallberry Business Suites Hotel, where the CDI Launch will also be held. By 12:30 pm, the program for the CDI Launching and MOU signing will commence.

Suggested Sequence of Events

10:30 - 11:30 am Arrival of CDI Launch Guests from the city

11:30 – 12:30 pm Lunch (upon the arrival of the Ambassador)

12:30 - 12:40 pm Opening Remarks and Introduction of Guest of Honor

Hon. Gloria D. Steele USAID/Philippines Mission Director

12:40- 1:00 pm Messages

His Excellency, Hon. Harry Thomas, Jr. US Ambassador to the Philippines

Hon. Vicente Y. Emano Mayor, Cagayan de Oro City

1:00 – 1:20 pm Signing of the Memorandum of Understanding

1:20 - 1:50 pm Expressions of Support

Hon. Jose Benjamin Benaldo Congressman, First District, Cagayan de Oro City

Hon. Rufus Rodriguez Congressman. Second District, Cagayan de Oro City

Hon. Gregory L. Domingo Secretary, Department of Trade and Industry

Hon. Jesse M. Robredo Secretary, Department of the Interior and Local Government

Ms. Ma. Teresa Alegrio President, Cagayan de Oro Chamber of Commerce and Industry

1:50 – 2:30 pm Press Conference

Master of Ceremonies: Mr. John Avila Program Management Specialist, USAID/Philippines

19 Suggested Remarks

Gloria Steele Acknowledgements (For revision based on confirmations):

Secretary Jesse Robredo of the Department of the Interior and Local Government; Secretary Gregory Domingo of the Department of Trade and Industry; Honorable Vicente Emano – City Mayor of Cagayan de Oro City; Congressman Jose Benjamin Benaldo of the First District of Cagayan de Oro City; Congressman Rufus Rodriguez of the Second District of Cagayan de Oro City; city officials and department heads; the officials of the Oro Chamber and the Promote CDO Foundation as well as other business groups; presidents and administrators of universities and colleges, representatives from the banking sector, cooperatives and civil society organizations; officials of the regional offices of the DILG, DTI and NEDA, ladies and gentlemen, good afternoon.

Significance of the Launching:

Thank you for joining us to mark the launching of the Cities Development Initiative in Cagayan de Oro City. The CDI is a program that manifests the continuing commitment of the government of the United States of America to the Philippine government‟s efforts to achieve sustainable and inclusive development that will ensure a secure, prosperous, and honorable future for all . The CDI‟s Launch today in Cagayan de Oro recognizes our belief in the city‟s potential as a growth center in Region X and in the whole island of Mindanao.

Introduction of the US Ambassador to the Philippines:.

The US government attaches great importance to this partnership with the city of Cagayan de Oro. Ladies and gentlemen, we are privileged to have with us His Excellency, the Honorable Harry Thomas, Jr., US Ambassador to the Philippines.

Harry Thomas, Jr. Acknowledgements (for revision based on confirmation)

Secretary Jesse Robredo of the Department of the Interior and Local Government; Secretary Gregory Domingo of the Department of Trade and Industry; Honorable Vicente Emano – City Mayor of Cagayan de Oro City; Congressman Jose Benjamin Benaldo of the First District of Cagayan de Oro City; Congressman Rufus Rodriguez of the Second District of Cagayan de Oro City; city officials and department heads; officials the Oro Chamber and the Promote CDO Foundation as well as other business groups; presidents and administrators of universities and colleges, representatives from the banking sector, cooperatives and civil society organizations; officials of the regional offices of the DILG, DTI and NEDA, Colleagues from USAID headed by Ms. Gloria Steele, the Mission Director of USAID Philippines ladies and gentlemen, good afternoon.

20 Key Messages:

The CDI Launch: USAID‟s Implementation of the Partnership for Growth

Today marks a momentous occasion for the United States of America and Cagayan de Oro City government. We are launching the Cities Development Initiative or the CDI program, paving the way for a five-year partnership for the attainment of peace, development and good governance in the city. The CDI is the contribution of the United States, through USAID, to your country‟s efforts to localize the attainment of inclusive broad-based economic development – a goal enshrined in the agreement between the governments of the Philippines and USA under the latter‟s Partnership for Growth Program. This agreement was signed last November 2011 for the US government by no less than the US Secretary of State Hillary Clinton. The Philippines is one of only four countries globally where the United States government will bring its 15 federal agencies to jointly give a whole package of assistance to advance economic development in the country. Through mutual responsibility and collaboration in the areas of health, education, environment and economic and investment promotion, the CDI hopes to unleash the development potentials of the three cities in the Philippines – Iloilo, Batangas and Cagayan de Oro.

CDI: Program to Accelerate CDO Recovery and Unleash Its Potential as Economic Hub in Region 10

Cagayan de Oro was chosen as one of the partner cities of CDI because of its economic potential to generate jobs and stimulate development not only in Misamis Oriental but also in the region. Dubbed as the "City of Golden Friendship”, it is considered the melting pot of Mindanao because of its accessibility, business growth, and tourist attractions. It is also a business hub of the Northern Mindanao region, which is considered as one of the most progressive and competitive cities in the country.

The development of Cagayan de Oro city however suffered a setback with the onslaught of tropical storm Sendong on December 16, 2011, which caused widespread flash floods and numerous deaths in Northern Mindanao. We are aware of the tremendous efforts for rehabilitation and reconstruction that your city needs to undertake to recover from the disaster. The CDI is our government‟s contribution in assisting your city in unleashing its potential for growth but in a sustainable and competitive manner. USAID – under the CDI - is providing assistance that will address growth and sectoral concerns such as those in the fields of education and health, energy, power and environment, economic and governance, and investments. More specifically, we offer technologies and systems that had been tested and proven effective, both here and in other

21 countries. We can provide technical and managerial expertise in the areas which the city government will need. We also make available logistical support relevant to the project.

We have started work in promoting an investment-friendly business environment in the city through the Investment Enabling Environment (or INVEST) project of USAID. We hope to assist your city in streamlining business registration processes, improve your capacity to promote investments through improved partnerships with stakeholders and your standing in competitiveness surveys.

Enjoin CDO Government to Participate in the Program

I commend Mayor Vicente Emano and the people of Cagayan de Oro City for the progress they have achieved in addressing key issues and constraints that hinder economic growth in the city. With CDI, we look forward to being a significant partner in your efforts. Together, we will move forward faster, and with greater efficacy toward attaining a sustainable and competitive Cagayan de Oro City, one whose contribution to national development and progress equals, if not exceeds, its potentials

I am confident that after our five-year engagement, the city will be able to generate the needed investments and increased economic activity that will enable it to realize its potential as a premier city in the whole country!

For inviting us to be partners in such a challenging endeavor, Maraming salamat po!

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