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12-19-14 Assessment of Prospective Cities for USAID Assistance Under Assessment of Prospective Cities for USAID Assistance under the Cities Development Initiative Investment Enabling Environment (INVEST) Project Submitted to: Mr. John Avila, Contracting Officer’s Representative Office of Economic Development and Governance U.S. Agency for International Development/Philippines Office of Economic Development and Governance under Contract No. AID-492-C-11-00005 (Output No. 1.4, Deliverable 1, Component 3) December 19, 2014 By Orient Integrated Development Consultants, Inc. (OIDCI) FSS Building, 89 Scout Castor Street, Quezon City, Philippines Tel No. 374.0757; Fax. No. 413.232 TABLE OF CONTENTS Acronyms………………………………………………………..……………............... i. I. Introduction………………………………………………………..…………………… 1 II. Key Activities……………………………………………………..……………………. 2 III. Findings and Results of the Assessment…………………………………………. 4 A. Zamboanga City………………………………………………..………………... 4 1. Brief Economic Profile………………………………………………..……….. 4 2. Significant Constraints to Economic Development………………………… 5 3. Other Issues for Consideration……………………………………………….. 8 4. Promising Industries (Nascent and Potential for Development)………….. 8 5. Significant ODA Projects………………………………………………..…….. 9 6. City Priorities………………………………………………..………………….. 10 7. Potential USAID Assistance Under the CDI………………………………... 11 B. Tagbilaran City………………………………………………..…………………. 18 1. Brief Economic Profile………………………………………………..……….. 18 2. Significant Constraints to Economic Development………………………… 19 3. Other Issues for Consideration……………………………………………….. 22 4. Promising Industries (Nascent and Potential for Development)………….. 22 5. Significant ODA Projects………………………………………………..…….. 23 6. City Priorities………………………………………………..………………….. 25 7. Potential USAID Assistance Under the CDI………………………………... 25 C. Puerto Princesa City………………………………………………..…………... 34 1. Brief Economic Profile………………………………………………..……….. 34 2. Significant Constraints to Economic Development………………………… 35 3. Promising Industries (Nascent and Potential for Development)………….. 37 4. Significant ODA Projects………………………………………………..…….. 38 5. City Priorities………………………………………………..………………….. 39 6. Potential USAID Assistance Under the CDI………………………………... 40 D. Tacloban City………………………………………………..…………………… 48 1. Brief Economic Profile………………………………………………..……….. 48 2. Significant Constraints to Economic Development………………………… 49 3. Promising Industries (Nascent and Potential for Development)………….. 50 4. Significant ODA Projects………………………………………………..…….. 51 5. City Priorities………………………………………………..………………….. 53 6. Potential USAID Assistance Under the CDI………………………………... 54 List of Tables Table 1 Possible USAID Support to Zamboanga City under the Cities Development Initiative…………………………………………………….. 12 Table 2 Possible USAID Support to Tagbilaran City under the Cities Development Initiative…………………………………………………….. 26 Table 3 Possible USAID Support to Puerto Princesa City under the Cities Development Initiative…………………………………………………….. 41 Table 4 Possible USAID Support to Tacloban City under the Cities Development Initiative…………………………………………………….. 55 List of Figures Figure 1 United Nations-Supported Projects in Zamboanga City………………. 10 Figure 2 Tacloban City Recovery and Rehabilitation Plan Program…………… 53 Annexes Annex 1 Stakeholders Consultation During Scoping Missions (October to November 2014……………………………………………………………. 62 Annex 2 Workshop Highlights-Towards realizing Zamboanga City’s Potential as an Economic Engine in Mindanao and the Philippines: Needs Assessment Workshop……………………………………………………. 66 Annex 3 Workshop Highlights-Towards realizing Tagbilaran City’s Potential as an Economic Engine in the Visayas and the Philippines: Needs Assessment Workshop……………………………………………………. 96 Annex 4 Workshop Highlights-Towards realizing Puerto Princesa City’s Potential as an Economic Engine: Needs Assessment Workshop…………………………………………………………………… 143 ! ! ! ! ! ! ! ! ! ! ! ACRONYMS AIM Asian Institute of Management ASEAN Association of Southeast Asian Nations AusAID Australian Agency for International Development B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project BaSulTa Basilan-Sulu-Tawi-Tawi BE-SECURE Water Security for Resilient Economic Growth and Stability BIMP-EAGA Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area BBL Bangsamoro Basic Law BFP Bureau of Fire Protection BOSS Business One-Stop-Shop BPLO Business Permit and Licensing Office BPLS Business Permit and Licensing System CDC City Development Council CDCS Country Development Cooperation Strategy CDI Cities Development Initiative CIDA Canadian International Development Agency CLUP Comprehensive Land Use Plan CMCI Cities and Municipalities Competitiveness Index COMELEC Commission on Elections COMPETE Advancing Philippine Competitiveness Project CPDC City Planning and Development Coordinator CPDO City Planning and Development Office CPH Census of Population and Housing DENR Department of Environment and Natural Resources DILG Department of the Interior and Local Government DOE Department of Energy DOST Department of Science and Technology DPWH Department of Public Works and Highways DRRM Disaster Risk Reduction Management DTI Department of Trade and Industry DOST Department of Science and Technology E-TRACS Enhanced Tax Revenue Assessment and Collection System ECC Environmental Compliance Certificate ECOFISH Ecosystems Improved for Sustainable Fisheries Project ENGAGE Enhancing Governance, Accountability and Engagement Project EO Executive Order EU European Union EVRGC Eastern Visayas Regional Growth Center FSIC Fire Safety Inspection Certificate GEM Growth with Equity in Mindanao GIZ German Agency for International Cooperation GOLD Governance and Local Democracy GRP Government of the Republic of the Philippines HEPP Higher Education and Productivity Project IATA International Air Transport Association ICAO International Civil Aviation Organization ICT Information and Communications Technology ! i! IDP Internally Displaced Person IFC International Finance Corporation IRA Internal Revenue Allotment INVEST Investment Enabling Environment Project JEDAG Joint Energy Development Advisory Group JICA Japan International Cooperation Agency JIT Joint Inspection Team JMC Joint Memorandum Circular KOICA Korean International Cooperation Agency LCDC Liveable Cities Design Challenge LEIPO Local Economic and Investments Promotion Officer LGPMS Local Governance Performance Management System LGU Local Government Unit LIIC Local Investment Incentives Code LP Liberal Party LRED Local and Regional Economic Development MC Memorandum Circular MILF Moro Islamic Liberation Front MNLF Moro National Liberation Front MoA Memorandum of Agreement MoU Memorandum of Understanding MYDev Mindanao Youth for Development NCC National Competitiveness Council NCIP National Commission on Indigenous Peoples NEDA National Economic and Development Authority NGA National Government Agency NGO Non-Government Organization NSO National Statistics Office OEDG Office of Economic Development and Governance OFW Overseas Filipino Worker PALECO Palawan Electric Company PCSD Palawan Council for Sustainable Development PfG Partnership for Growth PLDT Philippine Long Distance Telephone Company PPA Philippine Ports Authority PPP Public-Private Partnership PRISM Private Sector Mobilization for Family Health Project ProGED Promotion of Green Economic Development PWRF Philippines Water Revolving Fund SHE Security-Health-Education STRIDE Science, Technology, Research and Innovation for Development Project TA Technical Assistance TRRP Tacloban Recovery and Rehabilitation Plan UN United Nations UN-HABITAT United Nations Human Settlements Programme UN-WTO United Nations-World Tourism Organization USAID United States Agency for International Development WB World Bank Z3R Zamboanga City Roadmap to Recovery and Reconstruction program ZAMCELCO Zamboanga City Electric Cooperative ZCWD Zamboanga City Water District ! ii! ! I. INTRODUCTION In support of the Partnership for Growth (PfG) forged by the United States Government and the Philippines in 2011 to “transform the country by addressing its most serious constraints to development and growth,” the current five-year assistance of the United States Agency for International Development (USAID) in the Philippines, as indicated in the Country Development Cooperation Strategy (2012-2016) (CDCS), aims to create a more stable, prosperous, well-governed nation through (1) accelerated and sustained broad-based and inclusive growth; (2) improved peace and stability in conflict affected areas in Mindanao; and (3) improved environmental resilience1. Within this framework, the USAID launched the Cities Development Initiative (CDI) as its strategy for localizing the aforementioned development objectives with the overall goal of “strengthening the development of secondary cities as engines of growth and areas of improved quality of life.2” The CDI is envisaged as a multi-faceted package of support in target cities, covering various sectors, including investment generation, health, governance, education, and environment. Since 2012, CDI has covered one city for each island grouping, namely Batangas City in Luzon, Iloilo City in Visayas, and Cagayan de Oro in Mindanao. These three cities have served as pilot areas for the localization strategy of the CDCS and the PfG. With the rich experience and lessons learned from the implementation of the CDI in the three cities in the past two years, USAID’s intensive support to secondary cities in the country is ready to be expanded to other areas
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