2016 CALABARZON
Regional Development Report
Regional Development Council IV-A
i
2016 CALABARZON REGIONAL DEVELOPMENT REPORT
Foreword
HON. HERMILANDO I. MANDANAS RDC Chairperson
The 2016 Regional Development Report is an annual assessment of the socio- economic performance of the Region based on the targets of the Regional Development Plan 2011-2016. It highlights the performance of the key sectors namely macroeconomy, industry and services, agriculture and fisheries, infrastructure, financial, social, peace and security, governance and environment. It also includes challenges and prospects of each sector.
The RDC Secretariat, the National Economic and Development Authority Region IV-A, led the preparation of the 2016 RDR by coordinating with the regional line agencies (RLAs), local government units (LGUs), state colleges and universities (SUCs) and civil society organizations (CSOs). The RDR was reviewed and endorsed by the RDC sectoral committees.
The results of assessment and challenges and prospects in each sector will guide the planning and policy direction, and programming of projects in the region. The RLAs, LGUs, SUCs and development partners are encouraged to consider the RDR in their development planning initiatives for 2017-2022.
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TABLE OF CONTENTS
Page No. Foreword i
Table of Contents ii
List of Tables iii
List of Figures vii
List of Acronyms ix
Executive Summary xiii
Chapter I: Pursuit of Inclusive Growth 1
Chapter II: Macroeconomy 5
Chapter III: Competitive Industry and Services Sector 11
Chapter IV: Competitive and Sustainable Agriculture and Fisheries Sector 23
Chapter V: Accelerating Infrastructure Development 33
Chapter VI: Towards a Resilient and Inclusive Financial System 43
Chapter VII: Good Governance and Rule of Law 53
Chapter VIII: Social Development 57
Chapter IX: Peace and Security 73
Chapter X: Conservation, Protection and Rehabilitation of the Environment and 79 Natural Resources
Credit 90
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LIST OF TABLES
No. Title Page No.
1.1 Gross Regional Domestic Product Growth Rate, Calabarzon, 2011-2016, 1 (in percent) 1.2 Poverty Incidence Among Population by Province, Calabarzon, 2 2009-2015 (in percent) 1.3 Employment, Unemployment and Underemployment Rate, Calabarzon, 3 2011-2016 (in percent) 2.1 Gross Regional Domestic Product at constant 2000 prices, 5 Calabarzon, 2013-2016 (in PhP „000) 2.2 GRDP Growth Rate and Targets, Calabarzon, 2011-2016 (in percent) 6 2.3 Per Capita GRDP at constant 2000 prices, Philippines, NCR, and 6 Calabarzon, 2013-2016 (in PhP) 2.4 Labor Force Participation Rate, Calabarzon, 2015-2016 7 2.5 Employment, Unemployment and Underemployment Rate, 7 Calabarzon, 2015-2016 (in percent) 2.6 Labor Productivity by Sector, Calabarzon, 2013-2015 (in PhP) 8 3.1 Gross value added of the industry sector (at constant prices), 11 Calabarzon: 2015 to 2016 3.2 Gross value added in the services sector (at constant prices), Calabarzon: 12 2015 to 2016 3.3 Employment generated in industry and services sectors, Calabarzon; 13 2014 to 2016 3.4 Percent distribution of employed persons by sector and region, 2016 14 3.5 Public Employment Service and Labor Market Information Programs: 15 2015 to 2016 3.6 Employment generated from MSMEs‟ assisted by DTI and DOST: 2014 16 to 2016 3.7 Intellectual Property Rights applications and registrations, Calabarzon: 17 2013 to 2016 3.8 Business Name Registration by Province, Calabarzon: 2015 to 2016 17 3.9 Number of operating economic zones and industry locators by province, 18 Calabarzon: 2015 to 2016
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No. Title Page No. 3.10 Table 3.10. Merchandise Exports, Total Approved Investments and 19 Domestic Sales in Calabarzon: 2012 to 2016 3.11 Target and Actual Tourism Data, Calabarzon, 2015-2016 20 3.12 Protection of Consumer Welfare, Calabarzon: 2012 to 2016 21 4.1 Gross Regional Domestic Product in Agriculture, Hunting, Fishery and 23 Forestry Sector, Calabarzon: 2015 to 2016 (at constant 2000 prices) 4.2 Value of Production in Agriculture, Hunting, Fishery and Forestry 24 Sector, Calabarzon: 2015 to 2016 (at constant 2000 prices) 4.3 Rice Self-Sufficiency Ratio in Calabarzon (in percent), 2015 to 2016 24 4.4 Average Inflation Rates among basic commodities (in percent), 25 Calabarzon 4.5 Rice and Corn Volume of Production (in metric ton), Calabarzon: 2015 25 to 2016 4.6 Table 4.6. Rice and Corn Area Harvested (in hectare), Calabarzon: 2015 26 to 2016 4.7 Table 4.7. Rice and Corn Yield (in metric ton/hectare), Calabarzon: 2015 26 to 2016 4.8 High Value Crops Volume of Production (in metric ton), Calabarzon: 27 2015 to 2016 4.9 Area Planted/Harvested of High Value Crops (in hectare), Calabarzon: 28 2015 to 2016 4.10 Yield of Selected High Value Crops (in metric ton/hectare), 28 Calabarzon: 2015 to 2016 4.11 Volume of Livestock Production (in metric ton), Calabarzon: 2015 to 28 2016 4.12 Volume of Poultry Production (in metric ton), Calabarzon: 2015 to 2016 29 4.13 Volume of Fisheries Production (in metric ton), Calabarzon: 2015 to 30 2016 4.14 Number of Employed in Agriculture (in thousand persons), 30 Calabarzon: 2015 to 2016 4.15 Amount of Insurances Offered (in PhP Million), Calabarzon: 2015 to 31 2016 4.16 Number of Farmers who availed the Crop Insurance, Calabarzon: 2015 to 31 2016
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No. Title Page No. 5.1 Throughput of Batangas and Lucena Ports in 2015 and 2016 35 5.2 Status of Household Electrification Regionwide, 2015 and 2016 36 5.3 Status of Electrification by Province, 2015 and 2016 36 5.4 Status of Water Supply, 2016 37 5.5 Number of Government and Private Hospitals, Authorized Bed Capacity, 38 2015 5.6 Social Welfare Facilities, 2016 39 6.1 Number of Offices by Type of Bank, Calabarzon: 2012-2016 43 6.2 Number of Banks in Calabarzon by Type, by Province, 2014-2016 44 6.3 Bank Density Ratio in Calabarzon, 2014-2016 45 6.4 Number of ATMs, 2012-2016 46 6.5 Number of ATMs in Calabarzon by Type, by Province, 2014-2016 46 6.6 Loan Portfolio of Banks in Calabarzon by Province (in million pesos), 47 2014-2016 6.7 Deposit Liabilities of Banks in Calabarzon by Province (in million 48 pesos), 2014-2016 6.8 Number of Registered Cooperatives in Calabarzon, 2014-2016 49 6.9 Total Cooperative Assets, 2015-2016 49 6.10 Compliance to Mandatory Reports 50 6.11 Number of Microfinance-Oriented Banking Offices 2015-2016 50 6.12 Microfinance Statistics, 2015-2016 50 6.13 Revenue Type, Targets, Accomplishments (in million pesos), 2015-2016 51 7.1 Ranking of Calabarzon LGUs in the 2016 CMCI (included in Top 10) 53 8.1 Mortality Ratios in Calabarzon, 2015-2016 58 8.2 Health Manpower to Population Ratio in Calabarzon, 2015-2016 58 8.3 Net enrolment, Completion and Cohort Survival Rates for Basic 63 Education 8.4 COE Programs, COD Programs, and Number of Graduates in Higher 65 Education 9.1 Calabarzon Total Crime Volume, 2012-2016 76
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No. Title Page No. 10.1 Management o82f Forest Resources and Protected Areas in Calabarzon, 79 2012-2016 10.2 Secured Land85 Tenure in Agricultural A&D and Residential Lands, 80 2012-2016 10.3 Solid Waste Management in Calabarzon, 2012-2016 82 10.4 Hazardous Waste Management Monitoring in Calabarzon, 2015-2016 83 10.5 Water Quality and Management of Laguna de Bay, 2012-2016 84 10.6 Water Quality of Iyam-Dumacaan River, 2015-2016 85 10.7 Water Quality of Priority Rivers with BOD Level Not Within the Water 85 Criteria in Calabarzon, 2015-2016 10.8 Water Quality of Bathing Beaches in Calabarzon, 2013-2016 86 10.9 Air Quality With Potential to Pollute Air in Calabarzon, 2015-2016 88
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LIST OF FIGURES
No. Title Page No.
2.1 Inflation Rates, Philippines and Calabarzon, 2015-2016 8 2.2 Monthly inflation rates, Calabarzon, 2015-2016 9 3.1 Employment generated and growth rate in economic zones, 2012 to 2016 15 3.2 Consumer Price Index, Calabarzon: 2013 to 2016 18 5.1 Paved National Roads in Calabarzon, 2015 and 2016 33 5.2 Calabarzon National Road Condition, 2015 and 2016 34 6.1 Total Number of Banking Offices by Type of Bank, Calabarzon, 2016 44 6.2 Number of Banking Offices by Province, Calabarzon: 2014-2016 45 6.3 Number of ATMs in Calabarzon by Province, 2014-2016 46 6.4 Loan Portfolio of Banks in Calabarzon by Province (in Million Pesos), 47 2014-2016 6.5 Deposit Liabilities of Banks in Calabarzon by Province (in Millions) 2014- 48 2016 8.1 TB Case Detection and Success Rates in Calabarzon 59 8.2 Nutrition Data in Calabarzon, 2015-2016 60 8.3 Other Health and Nutrition Indicators in Calabarzon, 2015-2016 61 8.4 Contraceptive Prevalence Rate, Access to Safe Water and Sanitary Toilets 62 8.5 Net Enrolment Ratio (NER) of Kindergarten, Elementary and Secondary 62 SY 2014-2015 and SY 2015-2016 8.6 Number of Persons Assessed and Certified and Certification Rate 64 8.7 HHs covered by CCT 66 8.8 Youth provided with bridging employment assistance 67 8.9 Vulnerable workers provided with emergency employment 67 8.10 Workers in the informal sector provided with emergency employment 68 Workers in the informal sector provided with emergency employment 68 8.11 under BUB 8.12 Number of indeigent senior citizens covered by social pension 69 8.13 No. of hectares of land distributed under CARP 69
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No. Title Page No.
9.1 CPP-NPA-NDF Capability, Southern Luzon and Bicol Regions, 2012 to 73 2016 9.2 Number of Violent Incidents, Southern Luzon and Bicol Regions, 74 2012 to 2016 9.3 Calabarzon Total Crime Volume, 2012 to 2016 75 9.4 Calabarzon Index Crime Volume, 2012-2016 76 9.5 Calabarzon Crime Clearance Efficiency and Crime Solution Efficiency, 77 2012-2016
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LIST OF ACRONYMS
4Ps Pantawid Pamilyang Pilipino Program ACPP Accelerated Coconut Planting/Replanting Program AFF Agriculture, Fishery and Forestry AFP Armed Forces of the Philippines AHFF Agriculture, Hunting, Fishery and Forestry APIS Annual Poverty Indicators Survey ASEAN Association of South East Asian Nation ATM Automated Teller Machine BADAC Barangay Anti-Drug Abuse Council BLT Build-Lease-Transfer BOD Biochemical Oxygen Demand BPLS Business Permit and Licensing System BPO Business Process Outsourcing BSP Bangko Sentral ng Pilipinas BUB Bottom-Up-Budgeting CARP Comprehensive Agrarian Reform Program CCA Climate Change Adaptation CDF Controlled Disposal Facilities CFP Coconut Fertilization Project CLUP Comprehensive Land Use Plan CMCI Cities and Municipalities Competitiveness Index COD Center of Development COE Center of Excellence CPI Consumer Price Index CPP Communist Party of the Philippines CSFI Congressional Spouses Foundation Inc. CSO Civil Service Organization DAO DENR Administrative Order
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DRR Disaster Risk Reduction DRRM Disaster Risk Reduction and Management DRRMO Disaster Risk Reduction and Management Office EO Executive Order FOROC Field Office Resource Operation Center GAD Gender and Development GDP Gross Domestic Product GIDA Geographically Isolated and Disadvantaged Area GRDP Gross Regional Domestic Product GVA Gross Value Added HEI Higher Education Institutions HFEP Health Facilities Enhancement Program HIV Human Immunodeficiency Virus HVCC High Value Commercial Crops ICT Information Communication Technology IEC Information and Education Campaign IPs Indigenous Peoples IPG Investment Promotion Group IPR Intellectual Property Right IR Inflation Rate IT-BPM Information Technology and Business Process Management LCE Local Chief Executive LGU Local Government Unit MASA MASID Mamamayang Ayaw Sa Anomalya, Mamamayang Ayaw sa Ilegal na Droga MPN Most Probable Number MRF Materials Recovery Facility MSEZ Manufacturing Special Economic Zone MSME Micro, Small and Medium Enterprise
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MSR Manila South Road NC National Certificate NCI Non-Crop Insurance NCR National Capital Region NDF National Democratic Front NDRRMC National Disaster Risk Reduction and Management Council NER National Enrolment Ratio NGA National Government Agency NGO National Government Organization NGP National Greening Program NIPAS National Integrated Protected Areas System NPA New People‟s Army OD Open Dumpsite OF Overseas Filipino OFW Overseas Filipino Worker PA Protected Area PAMANA Payapa at Masaganang Pamayanan PAMB Protected Area Management Board PDPFP Provincial Development and Physical Framework Plan PGENRO Provincial Government Environment and Natural Resources Office PEZA Philippine Economic Zone Authority PNP Philippine National Police PPAN Philippine Plan of Action for Nutrition PPP Public-Private Partnership PSIP Public-Private Partnership School Infrastructure Project PWD People with Disabilities RDC Regional Development Council RDR Regional Development Report RLA Regional Line Agency
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ROLL-IT Roads Leveraging Linkages for Industry and Trade SDG Sustainable Development Goal SETUP Small Enterprise Technology Upgrading Program SGLG Seal of Good Local Governance SHS Senior High School SOLCOM Southern Luzon Command SPES Special Program for the Employment of Students SPMS Anti-Red Tape Act SUC State University and College SWM Solid Waste Management TB Tuberculosis TIP Term Insurance Packages TUPAD Tulong Panghanap Buhay sa Ating Disadvantaged/Displaced Workers TVET Technical Vocational Education and Training TVPL Tail Volcano Protected Landscape TWG Technical Working Group WQMA Water Quality Management Area WSP Water Service Providers
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EXECUTIVE SUMMARY
The Calabarzon Region‟s economy in 2016 recorded its lowest growth of GRDP at 4.8 percent during the entire planning period due to the substantial decline in the manufacturing sub-sector which accounts for more than 50 percent of the regional economy. Deceleration in the Region‟s GRDP growth started in 2013.
However, in spite of the slower growth, the poverty incidence in terms of population in 2015 was reduced to 9.1 percent, making the Region with the second lowest in poverty incidence among regions in the country.
Almost all of the provinces have shown improvement in poverty situation except for Cavite Province from 2012-2015. Cavite Province increased its poverty incidence from 3.4 percent to 6.8 percent due to the resettlement of informal settlers from other areas and lower income migrants. Batangas Province had the most reduction of poverty incidence from 19 percent to 9.3 percent.
The industry sector which comprises 61.4 percent of the regional economy slowed down its growth from 5.7 percent to 3.7 per cent in 2016. The slower growth was due to the decline in manufacturing, construction and mining sub-sectors. Among the industry sub-sectors, only the electricity, gas and water supply posted higher growth in 2016.
The services sector which comprises 33.2 percent of the regional economy, grew from 6.7 percent to 7.2 percent. Real estate, renting and business activities sub-sector which comprised 26.9 percent of the services sector contributed the biggest share.
The agriculture, hunting, fishery and forestry sector‟s 3.4 percent growth in Gross Value Added (GVA) was mainly driven by the agriculture and forestry sub-sectors.
The employment rate grew to 92.8 percent or an improvement of 0.8 percent from 2015 due to the growing services sector which absorbed local manpower. Both unemployment rate and underemployment rate declined by 0.8 percent and 2.7 percent, respectively.
With the continuous growth and development of Calabarzon as a major industrial region next to the National Capital Region and contributor to country‟s total output, the challenges in the industry particularly in the manufacturing sub-sector should be addressed in the succeeding Regional Development Plan 2017-2022 to improve its performance.
After six years, Calabarzon‟s economy from 2011 to 2016 attained an average growth rate of 5.23 percent driven primarily by the industry sector. However, the growth was not sustained as characterized by a decelerating trend in the last four years.
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C H A P T E R 1 IN PURSUIT OF INCLUS I V E G R O W T H
In pursuit of inclusive growth, three major plan outcomes were set out in the past Regional Development Plan 2011-2016 which were: 1) high, sustained, and inclusive economic growth; 2) provision of equal access to development opportunities; and 3) delivery of social safety nets. This chapter discusses Calabarzon‟s performance in the achievement of inclusive growth in 2016 as well as the Region‟s general performance in the previous medium-term.
Assessment
High, sustained, and inclusive economic growth
In the past medium-term1, the lowest GRDP growth at 4.8 percent was recorded in 2016 due to the decline in the manufacturing sub-sector which accounts for more than 50 percent of the regional economy.
Since 2012, the growth in the Region‟s economy has not been sustained, characterized by yearly fluctuations with some years with high and increased positive growth followed by lower growth in the succeeding years. While high GRDP growth was not consistent, other economic indicators targets on poverty and employment improved and some targets are met.
Table 1.1. Gross Regional Domestic Product Growth Rate, Calabarzon, 2011-2016, (in percent) 2011 2012 2013 2014 2015 2016 GRDP 1.7 7.3 6.7 5.1 5.8 4.8 AHFF 1.2 2.5 3.7 (1.2) 2.6 3.4 Industry 0.1 7.3 6.3 6.5 5.7 3.7 Services 4.9 8.1 7.9 3.8 6.7 7.2 Source: Philippine Statistics Authority (PSA)
Modest improvements in the economy resulted to moderate reduction in poverty2. According to the latest poverty data in 2015, poverty incidence among population declined by 1.8 percentage points from 10.9 percent in 2012 to 9.1 percent in 2015, making Calabarzon the second region with the lowest poverty incidence among regions and below the national average of 21.6. The Region was able to meet its end of plan target to reduce poverty by 10.5 percent (Table 1.2). The effects of economic growth in previous years may have contributed to reduction in poverty. Aside from being difficult to collect, poverty data is not collected annually since it may take more than a year for significant changes in poverty to happen. Thus, it may not be proper to associate the economic growth of an exact year to poverty reduction.
1 Excluding 2011 when structural and other economic reforms by the previous administration of Pres. Benigno Aquino were still newly implemented and were yet to have an effect.
2 PSA poverty data is every three years
Chapter 1: IN PURSUIT OF INCLUSIVE GROWTH 1
Despite the positive overall regional economic performance in 2015, poverty only declined by 30 percent from 2009 level and disparity of poverty between provinces exists. Quezon remains to have the highest poverty incidence at 22.7 percent while Cavite‟s poverty incidence worsened from 3.4 percent in 2012 to 6.8 percent in 2015 due to resettlement of informal settlers from nearby areas and low income migrants. Among provinces, Rizal and Laguna have the lowest poverty rate at 5.4 percent. Poverty in Batangas reduced significantly but remains high in island and remote areas in the province.
Taking a closer look, pro-poor growth remains to be elusive as shown by the data on subsistence or extreme poverty incidence among population which only reduced by 0.54 percentage points from 2.88 percent in 2009 to 2.34 percent in 2015 and severity of poverty among the poor which only reduced by a mere 0.1 percentage points in the past six years from 0.5 percent (2009) to 0.4 percent (2015). Likewise, income gap has not improved.
The small area estimates on poverty also show that poverty remains high and concentrated in certain areas in the province of Quezon and Batangas which are predominantly agriculture and fisheries based and are geographically isolated and disadvantaged areas (GIDAs) where employment and livelihood opportunities are limited and typically have less access to public services.
Table 1.2. Poverty Incidence Among Population by Province, Calabarzon, 2009-2015 (in percent) PROVINCE 2009 2012 2015 Among Population PHILIPPINES 26.3 25.2 21.6 Region IV-A 11.9 10.9 9.1 Target 13.9 12.4 (MDG) 10.5 Variance +2 +1.5 +1.4 Province Batangas 17.1 19.0 9.3 Cavite 3.2 3.4 6.8 Laguna 8.4 6.4 5.4 Quezon 29.8 27.5 22.7 Rizal 8.6 6.1 5.4 Source: PSA
The employment in the Region improved to 92.8 percent in 2016 from 92 percent in 2015, bringing down unemployment to 7.2 percent, the lowest in the past six years. Underemployment also decreased to 15.5 percent in 2016 from 18.2 in the previous year and is the lowest in the medium-term. (Table 1.3)
The improved employment rate can be attributed to expanded job opportunities in the fast growing services sector and the presence of many operating economic zones in the Region. Although the target on underemployment has been met, the Region was not able to meet its high target on reducing unemployment to 6.1 percent which can be attributed mainly to the continued increase of the working age population albeit slower job creation. The issues on employability of some of the labor force and mismatch contribute to the slow improvement on unemployment level.
Chapter 1: IN PURSUIT OF INCLUSIVE GROWTH 2
Table 1.3. Employment, Unemployment and Underemployment Rate, Calabarzon, 2011- 2016 (in percent) 2011 2012 2013 2014 2015 2016 Employment Target - - 93.9-94.1 93.9-94.1 93.9-94.1 93.9-94.1 Actual 90.3 91.1 90.8 92.0 92.0 92.8 Variance - - -3.1 -1.9 -1.9 -1.1 Unemployment Target 9.7 8.9 8.6-9.4 8.6-9.4 8.6-9.4 8.6-9.4 Actual 9.7 8.9 9.2 8.0 8.0 7.2 Variance - - -0.6 +0.6 +0.6 +1.4 Underemployment Target 17.9 17.9 <17.5 <17.5 <17.5 <17.5 Actual 17.9 17.9 17.9 18.7 18.2 15.5 Variance - - -0.4 -1.2 -0.7 +2 Source: PSA, Calabarzon Regional Development Plan (RDP) 2017-2022
Provision of equal access to development opportunities
On health, the Region still faces high maternal, infant, and child mortality due to poor service delivery networks, weak local implementation, and limited trained health manpower. There is also an increasing prevalence of underweight children and over nutrition among population which also indicates inequality and need for more accessible and quality health services, especially at the local level. For basic education (i.e., kindergarten, elementary, junior high school), the desired level of participation, in terms of net enrolment, was not met in 2016. The cost of education is one of top reasons cited on non attendance to school.
On a positive note, completion and cohort survival rates in all levels improved which was facilitated by government and non-government support on education materials, feeding programs and child protection policies.
Delivery of social safety nets
Social protection coverage in the Region also showed improvement in 2016. There was increase in the number of senior citizens with social pension, 100 percent health insurance coverage, and increase in youth and vulnerable workers provided with emergency and bridging employment.
Furthermore, the Pantawid Pamilyang Pilipino Program (4Ps) has started to show some positive outcomes in the Region as the number of poor households and others with children who graduated from college are no longer eligible. The challenge now is to provide transition programs to ensure that these families have the capability not to fall back to poverty.
Challenges and Opportunities
High poverty incidence in GIDAs and rural areas, and in the agriculture and fisheries sector remains as one of the major challenges in the Region. Since most of these families are engaged in small-scale and traditional farming and fishing, they continue to be among the poorest and most vulnerable sector to natural and economic shocks. Thus, to make growth inclusive, there is a need to build and sustain their knowledge and capacity to implement
Chapter 1: IN PURSUIT OF INCLUSIVE GROWTH 3 climate-proof agriculture practices, increase value-adding of agriculture products and to link ready small producers to larger market players.
The Regional Development Council (RDC) Anti-Poverty Convergence Technical Working Group was created to facilitate convergence of public and private efforts to fast track poverty alleviation in 35 priority areas with the highest poverty incidence in the Region and in areas with indigenous people. A public investment forum was conducted with these municipalities wherein the specific needs and potentials of each were translated into projects submitted to national government agencies for consideration and funding.
There is also a need for better implementation and coordination, continuous capacity building of personnel, and convergence of public and private resources to improve the delivery of basic services particularly on health and livelihood for vulnerable populations and in remote or isolated areas.
Sustaining high employment level and keeping underemployment low is another major challenge of the Region given its large working age population and being a preferred destination for in-migration. To compete with external job seekers, graduates in the Region should be more prepared for skills requirements by industries in Calabarzon. Thus, stronger academe and industry partnerships are needed. In this regard, the RDC‟s Special Committee on Academe-Industry Linkages provides a venue for education institutions and industries to discuss and establish areas for collaboration to ensure an adequate supply of relevant and job- ready local graduates and to help address job-skills mismatch.
The role of government agencies and local governments in employment generation and facilitation is also important in keeping employment high. Strong and relevant K to 12 tracks, alternative learning for out of school youths, expansion and promotion of accessible skills upgrading, and an innovative and technology based environment are needed to ensure high employability of the labor force into in-demand industries.
Chapter 1: IN PURSUIT OF INCLUSIVE GROWTH 4
C H A P T E R 2 MACROECONOMY
This chapter discusses the economic output and growth, labor and employment, and inflation, in the region for 2016. This chapter also discusses the challenges and prospects for the region‟s overall economic performance.
Assessment
Gross Regional Domestic Product (GRDP)
Calabarzon‟s share to the gross domestic product (GDP) decreased from 17.1 percent in 2015 to 16.8 percent in 2016 because of slower growth compared to other top regions contributing to the GDP which are NCR and Central Luzon which grew at 7.5 percent and 9.5 percent, respectively. Nonetheless, the region remained to be the second biggest contributor to the national economy, next to NCR with 36.6 percent.
For 2016, Calabarzon‟s GRDP amounted to PhP1.36 trillion with the bulk coming from the industry sector with PhP837 billion, comprising 61 percent of the region‟s total output. Service and Agriculture, Fisheries, and Forestry (AFF) sectors contributed PhP 453 billion (33percent) and PhP 75 billion (6 percent), respectively (Table 2.1).
Table 2.1. Gross Regional Domestic Product at constant 2000 prices, Calabarzon, 2013- 2016 (in PhP „000) Indicators 2013 2014 2015 2016 GRDP 1,170,574,623 1,230,372,013 1,302,297,272 1,364,951,206 AFF 71,173,016 70,299,391 72,134,407 74,588,701 Industry 717,601,114 764,007,392 807,516,677 837,489,176 Services 381,800,493 396,065,230 422,646,188 452,873,329 Source: PSA
The GRDP in 2016 decelerated at 4.8 percent from 5.8 percent last year. While the Region‟s economy has been growing at an annual average of 5.9 percent from 2012 to 2016, the actual GRDP growth rate fell below the targeted growth rates since 2014. Actual growth rates of the services sector also fell short of targets since 2013 and the industry sector experienced a significant slowdown in 2015 (Table 2.2). High GRDP growth was not sustained due to heavy reliance on export and foreign markets and unfavourable weather and climate change that affected the industry, services, and agricultural output.
In the past six years, the lowest growth was recorded in 2016, lower than 2014 when the agriculture and fisheries sector contracted to 1.2 percent. Because the manufacturing sub- sector accounts for more than 50 percent of the regional economy, its slower growth had a large impact on the region‟s GDP.
On a positive note, the services and AFF sector posted higher growth rates at 7.2 percent and 3.4 percent, respectively (Table 2.2). The services sector benefitted from continued investments in the region which generated jobs and kept employment in the region within target. The “recovery” of the agriculture, fisheries and forestry sector was driven primarily by
Chapter 2: MACROECONOMY 5 the high growth in livestock and poultry catering to high demand, thus meeting its target growth rate for 2016. However, growth for crops and fisheries production remained slow. In particular, fisheries contracted to 0.6 percent in 2016, but lower than the 6.6 percent contraction in 2015.
Table 2.2. GRDP Growth Rate and Targets, Calabarzon, 2011-2016 (in percent) 2011 2012 2013 2014 2015 2016 GRDP Target - 7.0 5.5-6.5 5.7-6.7 6.2-7.2 6.6-7.6 Actual 1.7 7.3 6.7 5.1 5.8 4.8 AFF Target 1.2 2.5 2.7-3.7 2.9-3.9 3.0-4.0 3.2-4.2 Actual 1.2 2.5 3.7 -1.2 2.6 3.4 Industry Target 0.1 6.9 4.5-5.5 4.7-5.7 5.1-6.1 5.5-6.5 Actual 0.1 7.3 6.3 6.5 5.7 3.7 Services Target 4.9 8.0 8.0-9.0 8.2-9.2 8.7-9.7 9.0-10.0 Actual 4.9 8.1 7.9 3.8 6.7 7.2 Source: PSA, Calabarzon RDP 2017-2022
Per Capita GRDP
The Region‟s per capita GRDP amounted to PhP 94,826 in 2016, which is 20.5 percent higher than the national average. Among the regions, Calabarzon has the second highest per capita GRDP. The per capita GRDP has grown by 2.9 percent from 2015 to 2016 (Table 2.3). The Region‟s per capita GRDP grew at an average of 3.9 percent from 2013 to 2016, indicating that the growth rate for this year is lower than the average growth rate in the past three years.
Table 2.3. Per Capita GRDP at constant 2000 prices, Philippines, NCR, and Calabarzon, 2013-2016 (in PhP) Indicators 2013 2014 2015 2016 Philippines 68,746 71,741 74,833 78,712 NCR 195,013 202,904 18,987 232,836 Calabarzon 84,657 86,644 92,184 94,826 Source: PSA
Labor and Employment
Calabarzon has the largest labor force with 9,341,000, comprising 14 percent of the country‟s total labor force. However, the Region‟s labor force participation rate decreased from 64.5 percent in 2015 to 64.2 percent in 2016 (Table 2.4). The decrease can be attributed to the effects of the implementation of the K to 12 Program as more children ages 15 and up are still in high school and the increase in the number of individuals who can now go to college. This is evident in the increasing number of graduates from Higher Education Institutions (HEIs) (discussed in Chapter 8).
Chapter 2: MACROECONOMY 6
Table 2.4. Labor Force Participation Rate, Calabarzon, 2015-2016 Indicators 2015 2016 Population 15 years and above („000) 8,576 9,341 Labor force participation rate (%) 64.5 64.2 Source: PSA
Employment rate in the Region grew by 0.8 percentage points from 92 percent in 2015 while both unemployment and underemployment rates declined by 0.8 and 2.7 percentage points, respectively (Table 2.5). These figures indicate an improvement in the employment situation in the Region brought by the creation of more jobs as a result of the growing services sector which is able to absorb the local manpower. However, the Region‟s high target on employment was not met due to increasing number of graduates and in-migrants who have longer school to work or work to work transition.
Table 2.5. Employment, Unemployment and Underemployment Rate, Calabarzon, 2015-2016 (in percent) 2015 2016 Indicators Target Actual Target Actual Employment rate 93.9-94.1 92.0 93.9-94.1 92.8 Unemployment rate 8.6-9.4 8.0 8.6-9.4 7.2 Underemployment rate <17.5 18.2 <17.5 15.5 Source: PSA and Department of Labor and Employment
Labor Productivity
The workers in the industry sector remained to be the most productive with labor productivity at PhP 605,255 per person, followed by services sector and agriculture, forestry and fisheries at PhP 137,091, and PhP 111,143 per person, respectively (Table 2.6). Labor productivity in the industry sector is five times more than AFF, and more than quadruple the services sector.
Services employ 3.5 million people, followed by industry with 1.5 million, and AFF sector with only 728,000 in 2015. The AFF sector has always faced the challenge of low employment since agricultural-related jobs are not attractive particularly to the young population. On the contrary, services sector employed the bulk of the labor force since services are mostly labor-intensive.
The high labor productivity in industry is primarily due to its highly-mechanized and technologically advanced production. In addition, industry also produces high value products such as electronics, automotive, and chemicals. Although the services sector has the most employed persons, its productivity is lower than industry because most (19%) of its labor force are in the wholesale and retail trading, and repair of motor vehicles and motorcycles which are both labor-intensive and with less value compared to industry outputs.
The AFF sector has the lowest labor productivity as agricultural production is not mechanized, thus, requiring more manpower with little value of production. Moreover, agricultural products are less resilient to climate change and are more susceptible to losses.
Chapter 2: MACROECONOMY 7
Table 2.6. Labor Productivity by Sector, Calabarzon, 2013-2015 (in PhP)* Growth Rate Growth Rate Indicators 2013 2014 2015 13-14 14-15 Calabarzon 241,754 0.3 241,420 5.7 256,386 AFF 106,546 (7.9) 96,964 16.2 111,143 Industry 570,430 2.1 574,432 3.5 605,255 Services 130,933 (0.7) 130,294 4.9 137,091 Source: PSA *Note: Latest available data on labor productivity at the regional level
Inflation
Since 2015, the region has experienced stable inflation rate (IR) at 0.9 despite the average consumer price indices (CPI) increasing from last year at PhP 139.7 to PhP 140.9 in 2016. This was remarkably lower than the national inflation rate at 1.8 (Figure 1). Thus, prices were more stabilized in Calabarzon compared to other regions.
Figure 2.1. Inflation Rates, Philippines and Calabarzon, 2015-2016 2.0 1.8
1.5 1.4
1.0 Calabarzon 0.9 Philippines 0.9 0.5
0.0 2015 2016
Notably, IRs were higher for the second half of 2016, the same with CPIs (Figure 2). This was not observed in 2015 where higher IRs were established in the first half while CPIs remained almost the same all year. The second half of 2016 marks the transition of the government to a new administration which might have contributed to the weakened value of peso.
Chapter 2: MACROECONOMY 8
Figure 2.2. Monthly inflation rates, Calabarzon, 2015-2016 2.5
2.0
1.5
1.0 2015 0.5 2016
0.0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec -0.5
-1.0
Challenges and Prospects
The Region is expected to sustain its economic performance despite the deceleration in industry sector because of gradual acceleration of AFF sector and continued acceleration of the services sector. Investments are expected to increase particularly in infrastructures, and real estate and renting, as aligned with the current administration‟s “Build! Build! Build!” program and private sector investments to industry and AFF. Recommendations in the industry studies and the investment promotion group will call for more investments in the region. This will also generate more jobs and keep the employment rate within target.
The high population in the Region can be translated to more supply of manpower. In 2016, around 65 percent of the Region‟s population are those that are aged 15 years and above and this available and skilled manpower can attract more investments. Stabilized prices, as shown by low inflation rates, also propel consumer spending which attributed to the expansion of the GRDP.
In spite of economic growth, Calabarzon is still facing the challenge of inclusive growth, especially the AFF sector. The need to increase agricultural labor productivity and expand economic opportunities in this sector has to be addressed.
Chapter 2: MACROECONOMY 9
Chapter 2: MACROECONOMY 10
C H A P T E R 3 COMPETITIVE INDUSTRY A N D SERVICES SECTOR
This chapter highlights the 2016 performance of the industry and services sectors in support of the targets and strategies in the updated RDP 2011-2016.
Assessment
The industry and services sectors remained the dominant contributors to the Calabarzon economy. The industry sector comprised about 61.4 percent while the services sector comprised about 33.2 percent of the regional economy. Services sector‟s contribution in 2016 was higher by about one percent compared in 2015.
Competitive and Innovative Industry and Services Sectors
Growth
Industry sector further decelerated. The industry sector further decelerated in 2016 at 3.7 percent growth compared to 6.5 percent in 2014 and 5.7 percent in 2015. This can be attributed to slower growth of the manufacturing and construction subsectors and the contraction in the mining and quarrying subsector. Consequently, the regional target growth was not achieved. The industry sector contributed about PhP837.49 Billion to the GRDP.
While the manufacturing subsector grew by 3.6 percent in 2016, it was lower compared to 5.5 percent growth in 2015 and considerably lower compared to 7.1 percent growth in 2014. As the top contributor to the industry sector at 86.6 percent share, it affected the overall performance of the sector in 2016. The manufacturing subsector experienced slower growth in the 4th quarter of 2016 due to continuous depreciation of Philippine peso that increased input costs particularly for imported raw materials (Valencia, 2016). Similarly, construction subsector decelerated from 7.2 percent in 2015 to 3.6 percent in 2016 which can be the impact of election bans in 2016 resulting to limited construction activities especially for the public sector. On the other hand, mining and quarrying contracted from a positive growth of 17.9 percent in 2015 to negative 1.8 percent in 2016 due to lower production of non-metallic minerals. Among the industry subsectors, only the electricity, gas and water supply posted faster growth in 2016.
Table 3.1. Gross value added of the industry sector (at constant prices), Calabarzon: 2015 to 2016 GRDP (in ‘000) Growth rate (in %) Sub-sector 2015 2016 2014 2015 2016 Industry 807,516,677 837,489,176 6.5 5.7 3.7 Mining and Quarrying 2,696,475 2,648,823 8.9 17.9 (1.8) Manufacturing 700,331,220 725,607,545 7.1 5.5 3.6 Construction 61,850,848 63,409,009 2.1 7.2 2.5 Electricity, Gas and Water Supply 42,638,135 45,823,800 2.5 6.8 7.5 Source: PSA Region IV-A
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 11
Services sector continued to accelerate. The services sector further accelerated in 2016 at 7.2 percent compared to 3.7 percent growth in 2014 and 6.7 percent growth in 2015 due to faster growth of five subsectors. This resulted to the achievement of regional target of higher growth in 2016 relative to 2015. Its total contribution to the GRDP was about PhP452.87 Billion which is equivalent to 33.2 percent share.
Among the six subsectors, it was real estate, renting and business activities that contributed to the growth of the services sector. It comprised 26.9 percent of the services sector accelerated from 6.9 percent in 2015 to 7.2 percent in 2016. Business process outsourcing (BPO) which is highly concentrated in Rizal, Cavite and Laguna contributed to the acceleration of this subsector. Further expansion of new and existing BPO companies increased demand for office space while remittances from overseas Filipinos continued to fuel demand for residential space added to the stellar growth of real estate, renting and business activities .
Other services had the fastest growth at 9.6 percent in 2016 due to higher professional services registered. This subsector is comprised of education, health and social work, hotels and restaurants, sewage and refuse disposal sanitation and similar activities, and recreational, cultural and sporting activities.
Public administration and defense and compulsory social security grew by 7.5 percent due to the implementation of Executive Order 201 series of 2016 increasing the based pay of government employees and uniform and military personnel. Moreover, numerous positions were filled-up, upgraded and reclassified. On the other hand, financial intermediation accelerated at 8.3 percent due to sustained growth of bank lending especially for production activities.
Table 3.2. Gross value added in the services sector (at constant prices), Calabarzon: 2015 to 2016 Growth rate GRDP (in ‘000) Sub-sector (in %) 2015 2016 2014 2015 2016 Services 422,646,188 452,873,329 3.7 6.7 7.2 Transportation, Storage and 85,785,427 91,199,987 6.6 5.9 6.3 Communication Trade and Repair of Motor Vehicles, 97,792,624 103,374,841 1.0 6.9 5.7 Motorcycles, Personal and Household Goods Financial Intermediation 48,481,969 52,484,475 7.8 6.0 8.3 Real Estate, Renting and Business 113,590,706 121,776,273 3.2 6.7 7.2 Activities Public Administration and Defense; 15,320,766 16,465,693 4.0 0.8 7.5 Compulsory Social Security Other Services 61,674,696 67,572,061 2.2 9.7 9.6 Source: PSA Region IV-A
Employment Generated
Employment significantly increased. Employment in the industry and services sectors significantly increased in 2016 at 17.42 percent growth and 15.02 percent growth,
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 12 respectively, compared to 0.53 percent growth and 1.94 percent growth in 2015. Employment increase in the industry sector was due to the considerable employment growth in 2016 of mining and quarrying, and construction subsectors from a decline in 2015 and increased employment in manufacturing subsector which comprised 16.8 percent of the total employment. While the GVA of construction subsector decelerated in 2016 due to election bans on government projects, the said subsector still recorded a positive growth in 2016 that contributed to increase in employment. The last quarter of 2016 may have also contributed to the increase in employment through hiring of people for new constructions. The Philippine Statistics Agency considered people employed if the person do any work even for one hour during the reference period for pay or profit. On the other hand, employment on mining and quarrying increased due to start of operations of new approved mining tenements. Development stage of mining operations requires more labor.
Table 3.3. Employment generated in industry and services sectors, Calabarzon; 2014 to 2016 Actual (‘000) Growth Rate (%) Sector 2014 2015 2016 2014 2015 2016 Industry 1,330 1,337 1,565 5.64 0.53 17.42 Mining and Quarrying 5.10 5.09 6.50 5.37 (0.20) 27.70 Manufacturing 902.17 905.10 957.10 5.86 0.32 5.75 Construction 402.66 401.72 578.40 6.61 (0.23) 43.98 Electricity, Gas, Steam and Air 15.29 15.26 15.30 5.23 (0.20) 0.26 Conditioning Supply Water Supply, Sewerage, Waste 10.19 10.17 8.20 5.27 (0.20) (19.37) Management and Remediation Activities Services 3,043 3,102 3,568 4.39 1.94 15.02 Wholesale and Retail Trade; 968.43 971.24 1,168.30 3.10 0.29 20.29 Repair of Motor vehicles and Motorcycles Transportation and Storage 407.76 427.14 501.60 2.70 4.75 17.43 Accommodation and Food 310.92 300.02 332.20 8.84 (3.51) 10.73 Service Activities Information and Communication 56.07 71.19 72.60 (10.93) 26.97 1.98 Financial and Insurance Activities 86.65 81.36 87.00 27.82 (6.11) 6.93 Real Estate Activities 45.87 45.77 59.50 5.25 (0.22) 30.00 Professional, Scientific and 35.68 35.60 45.30 5.28 (0.22) 27.25 Technical Activities Administrative and Support 183.49 208.49 258.00 8.27 13.62 23.75 Service Activities Public Administration and 239.56 244.08 245.80 3.07 1.89 0.70 Defense; Compulsory Social Security Education 163.10 167.81 179.40 12.14 2.89 6.91 Human Health and Social Work 71.36 81.36 83.70 (1.75) 14.01 2.88 Activities Arts, Entertainment and 81.55 86.45 79.60 (0.92) 6.01 (7.92) Recreation Other Service Activities 331.30 350.87 455.00 2.60 (10.60) 29.68 Source: PSA Region IV-A
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 13
On the other hand, significant increase in the services sector can be attributed to its robust growth of the services sector in 2016. Majority of its subsectors significantly increased employment in 2016. Higher employment rate can also be attributed to the conduct of National and Local elections in May of 2016. On the other hand, employment on arts, entertainment and recreation subsector decline in 2016.
Among the regions in the country, Calabarzon remained on top in terms of employment in industry sector while it ranked second in terms of employment in the services sector. For the industry sector, majority of employed people were in manufacturing and construction subsectors while in services sector, majority were employed in the wholesale and retail trade, repair of motor vehicles and motorcycles and transportation and storage subsectors. The services sector employed the most number of people in the region followed by the industry sector.
Table 3.4. Percent distribution of employed persons by sector and region, 2016 2016 Regions Industry (‘000) Services (‘000) National Capital Region 1,011.05 4,201.37 Cordillera Administrative Region 108.65 321.35 Ilocos Region 51.68 1,071.29 Cagayan Valley 148.20 579.48 Central Luzon 990.59 2,735.07 Calabarzon 1,564.05 3,566.04 Mimaropa 170.22 535.69 Bicol Region 368.23 1,121.01 Western Visayas 417.00 1,687.23 Central Visayas 627.32 1,665.32 Eastern Visayas 248.84 850.34 Zamboanga Peninsula 172.45 683.62 Northern Mindanao 276.59 998.14 Davao Region 300.43 1,020.27 SOCCSKSARGEN 215.01 863.78 Caraga 166.22 523.64 ARMM 51.30 347.72 Source: PSA Region IV-A
Significant increase in the number of employed people in industry and services sectors can also be attributed to the increased number of qualified jobseekers referred for placement through Public Employment Service Office and institutions reached in Labor Market Information Program of the Department of Labor and Employment. Qualified jobseekers referred for placement increased by 5.95 percent in 2016 and with 36,255 difference from the 2016 target. While the individuals reached in Labor Market Program declined by 33.45 percent in 2016, the number of institutions reached significantly increased by 298.61 percent. Targets for both indicators, however, were achieved in 2016.
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 14
Table 3.5. Public Employment Service and Labor Market Information Programs: 2015 to 2016 Targets Accomplishments Growth Programs 2015 2016 2015 2016 Rate Public Employment Service Qualified jobseekers referred 276,459 276,459 295,151 312,714 5.95 for placement Labor Market Information Individuals reached 334,945 425,800 795,614 529,490 (33.45) Institutions reached 2,890 3,500 9,503 37,880 298.61 Source: DOLE Region IV-A
Employment in economic zones located in Calabarzon comprised 8.98 percent of the total employment in the region in 2016. It increased by 1.53 percent or an additional of 7,059 workers which can be attributed to the additional number of operational economic zones in 2016. However, the slowdown in generated employment can be attributed to the significant decline in total approved investments in Calabarzon economic zones. This is a significant decline in the rate of growth from a high of 10.72 percent in 2014 to 1.53 percent in 2016.
Figure 3.1. Employment generated and growth rate in economic zones, 2012 to 2016 500,000 12
400,000 10.72 10
9.92
8 300,000 8.21 6
200,000 Percent Number 4 100,000 3.10 2 0 1.53 0 2012 2013 2014 2015 2016 Year Actual Growth Rate
Source of data: Philippine Economic Zone Authority
Employment generated from micro, small and medium enterprises‟ (MSMEs) assisted by the Department of Trade and Industry (DTI) Region IV-A and Department of Science and Technology (DOST) Region IV-A increased by 8.76 percent and 17.48 percent in 2016, respectively. While rate of growth accelerated from DTI-assisted MSMEs, DOST-assisted MSMEs decelerated due to the number of graduated and terminated Small Enterprise Technology Upgrading Program (SETUP) projects. SETUP is one of DOST‟s flagship programs that aims to support and sustain the growth of MSMEs. In addition, technology interventions involved mechanization of some processes that will not require additional labor. Both DTI and DOST achieved its target number of employment generated from their assisted
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 15
MSMEs from 2013 to 2014 due to continued increase in the number of MSMEs assisted by both government agencies.
Table 3.6. Employment generated from MSMEs‟ assisted by DTI and DOST: 2014 to 2016 DTI DOST Year Growth Growth Target Actual Target Actual Rate Rate 2013 22,000 20,690 88 113 2014 22,647 26,460 27.89 89 1,016 799.12 2015 24,911 28,080 6.12 106 2,157 112.30 2016 28,000 30,540 8.76 2,500 2,534 17.48 Source: Department of Trade and Industry Region IV-A and Department of Science and Technology Region IV-A
Intellectual Property Rights
Intellectual Property Rights applications and registrations increased. Intellectual Property Rights is important to foster innovation and the latter is vital in achieving competitiveness and enhancing growth. Without this, businesses will not reap the full benefits of their unique ideas and inventions and thereby, will lose interest on research and development (International Trade Administration, 2016). While IPR protects businesses to reap the benefits of their inventions, it also protects consumers to safe and guaranteed products (US Chamber of Commerce, 2009).
The region has IPR applications for patents, utility model and industrial design. An industrial design is the ornamental or aesthetic aspect of an article. It may consist of three-dimensional design applied to a wide variety of products of industry and handicraft. A patent is an exclusive right granted in development or improvement of product or process. It gives the inventor the sole right to exclude others from making, using or selling the invention. On the other hand, a utility model is designed to protect innovations that are not sufficiently inventive to meet the inventive threshold required for standard patents application (IPOPHIL, n.d.).
Among the three IPR applications, industrial design has the most number of applications and grants in 2016 followed by utility model. Higher application and registration was recorded for utility model and industrial design in 2016 compared in 2015. The case was different for patent with fewer applications in 2016 compared in 2015 but with higher registrations. Patent registration doubled in 2016 despite fewer applications.
In terms of rate of success in approving grants and registrations, utility model has the highest rate at about 63.64 percent while patents has the lowest rate at 10.26 percent. This can be attributed to the difficulty in demonstrating an invention is patentable. To classify in a patent application, the invention should be a novelty, has an inventive step and has industrial applicability. Rate of success was higher to patents and utility model in 2016 while it was lower to industrial design. Patent application was 7.15 percent lower while industrial design application was 78 percent higher in 2016 compared to 2015. Increasing number of IPR applications and registrations shows the region‟s efforts in improving competitiveness through innovation and invention.
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 16
Table 3.7. Intellectual Property Rights applications and registrations, Calabarzon: 2013 to 2016 Applications Grants/Registrations Percent Registered Year Utility Industrial Utility Industrial Utility Industrial Patents Patents Patents Model Design Model Design Model Design 2013 39 48 126 6 37 68 15.38 77.08 53.97 2014 39 65 120 5 36 41 12.82 55.38 34.17 2015 42 48 50 2 30 48 4.76 62.50 96.00 2016 39 55 89 4 35 54 10.26 63.64 60.67 Source: Intellectual Property Office of the Philippines
Business Climate
Business climate improved. Business climate is a general economic environment that influences the enterprises to expand operations and to invest in a particular location. It is comprised of government‟s attitude towards businesses and their activities, public policies and inflation rate, among others.
Business registration is an indicator of business climate. Approved business names registered in Calabarzon increased by 7.25 percent in 2016. Among the Calabarzon provinces, Cavite has the most number of registered business names in 2016 while Quezon has the least number of name registrations. On the other hand, rate of growth in business name registration was highest in Batangas with 15.28 percent while lowest in Rizal with lesser name registrations in 2016 compared in 2015. However, it can be noted that the target number of business name registrations was achieved in all provinces including the regional level.
Increase in the number of business name registrations can be attributed to the establishment of Negosyo Centers across the region. A total of 23 negosyo centers were established in Calabarzon in 2016. Negosyo centers aim to facilitate ease of doing business and access to services of MSMEs. Establishment of negosyo centers can potentially increase not only the number of business names registered but the number of business registered as well.
Table 3.8. Business Name Registration by Province, Calabarzon: 2015 to 2016 2015 2016 Growth Area Target Actual Target Actual Rate (%) Batangas 13,576 11,179 11,000 12,887 15.28 Cavite 15,764 18,418 15,000 20,125 9.27 Laguna 16,331 15,725 17,000 17,167 9.17 Quezon 6,176 5,041 5,000 5,370 6.53 Rizal 13,795 12,645 12,000 12,024 (4.91) Calabarzon 65,642 63,008 60,000 67,573 7.25 Source: DTI Region IV-A
Consumer Price Index
The Consumer Price Index (CPI) is a measure of changes in the price level of a market basket of consumer goods and services purchased by an ordinary household. It is used to determine the inflation rate. CPI of key industry and services continued to increase from 2013 to 2016. Rate of increase in CPI of food products was notable compared to CPI of non-alcoholic
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 17 beverages. Based on 2016 Regional Economic Development Report of Bangko Sentral ng Pilipinas, increase in CPI of food products can be attributed to weather-related supply disruptions and seasonal demand (e.g. surge of demand during holiday seasons). Changes in CPI, in general, can be attributed to the volatility of oil prices.
Figure 3.2. Consumer Price Index, Calabarzon: 2013 to 2016 170.0 160.0 150.0 Food 140.0
CPI 130.0 Non-alcoholic beverages 120.0 All items 110.0 100.0 2013 2014 2015 2016 Year
Source of data: PSA Region IV-A
Regional Productivity
Number of operating economic zones increased. Economic zones significantly provide employment and growth in the region. From a total of 48 economic zones in the region, additional five economic zones operated in 2016. Three manufacturing special economic zones (MSEZ), one IT center and one IT park were established in 2016. Likewise, the number of industry locators increased from 1,794 in 2015 to 1,884 in 2016. MSEZ remained with the most number comprising 66 percent of the total economic zones located in Calabarzon. Majority of this are located in Laguna, Cavite and Batangas. Other types of economic zones operating in Calabarzon include medical tourism park, tourism economic zones and agro-industrial economic zones. Among the provinces, Laguna has the most number of operating economic zones with a total of 19 while Quezon has only one operating economic zone.
Table 3.9. Number of operating economic zones and industry locators by province, Calabarzon: 2015 to 2016 2015 2016 Province Operating Industry Operating Industry economic zones locators economic zones locators Batangas 14 273 15 305 Cavite 11 680 14 704 Laguna 19 837 19 870 Quezon 1 1 1 1 Rizal 3 3 4 4 TOTAL 48 1,794 53 1,884 Source: PEZA Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 18
While merchandise exports from economic zones significantly increased in 2016, total approved investments significantly declined. Merchandise exports increased by 3.96 percent in 2016 which was higher than its 0.44 percent growth in 2015. This can be attributed to the significant increase in merchandise exports of economic zones located in Laguna province. On the other hand, total approved investments declined considerably at 25.27 percent in 2016 which can be attributed to the significant decline in total approved investments of economic zones located in Batangas and Laguna. Investors were hesitant to expand and bring investments due to changes in priority policies, programs and projects of the new administration. Thus, the target for merchandise exports in 2016 was achieved while target for total approved investments was not.
Domestic sales from MSMEs also declined at 2.73 percent in 2016 compared to its growth of 8.69 percent in 2015. Consequently, target in 2016 was not achieved.
Table 3.10. Merchandise Exports, Total Approved Investments and Domestic Sales in Calabarzon: 2012 to 2016 Indicator 2012 2013 2014 2015 2016 TARGET Merchandise Exports (US$ M) Increasing Increasing Increasing Increasing Total Approved Investments Increasing Increasing Increasing Increasing (PhP M) Domestic Sales (PhP M) 811 915 1,000 1,100 VALUE Merchandise Exports (US$ M) 21,761.90 22,864.78 22,890.39 22,990.77 23,901.67 Total Approved Investments 120,371.84 80,900.14 103,849.50 106,326.89 79,460.77 (PhP M) Domestic Sales (PhP M) 719.34 850 978 1,063 1,034 GROWTH RATE Merchandise Exports (US$ M) (0.83) 5.07 0.11 0.44 3.96 Total Approved Investments 6.66 (32.79) 28.37 2.39 (25.27) (PhP M) Domestic Sales (PhP M) 8.72 18.16 15.06 8.69 (2.73) Source: PEZA and DTI Region IV-A
Tourism
Tourist arrivals increased. The Calabarzon region offers numerous options that tourists can definitely enjoy. These range from health and wellness, sun and beaches, ecotourism, sports tourism, cuisine, and history and culture, among others. Each province comprising the Calabarzon region boasts of unique and strong attributes as tourist destination.
Same day tourist arrivals increased by 20.49 percent in 2016 while overnight tourists increased by 17.98 percent in 2016. The increase in number of tourists in 2016 was due to social media exposure of new destinations and continuous improvement of facilities and services in the region, e.g. road improvements that made traveling easier and faster. It can also be attributed to increased submission of Statistical Data Report of tourism establishments and local government units. Targets for overall same day tourist arrivals and overnight tourists were met in 2016. Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 19
Foreign tourists comprised 1.79 percent of same day tourists and 5.05 percent of overnight tourists. Majority of foreign tourists came from Korea, Japan, China, USA and India. Foreign same day tourist arrivals and foreign overnight tourists declined by 0.94 percent and 39.75 percent, respectively, in 2016. Decline in overnight tourists particularly in Cavite and Batangas can be attributed to LGUs‟ and tourism establishments‟ incomplete submission of data and limited marketing strategies in tourism travel expos and selling missions. In addition, lower booking for company outings were observed. Consequently, targets on foreign same day arrivals and overnight tourists were not met in 2016.
Accredited tourism enterprises increased by 18.85 percent while DOT-accredited accommodation establishments increased by 20.67 percent. Likewise, employees in DOT- accredited establishments increased by 5.08 percent.
Table 3.11. Target and Actual Tourism Data, Calabarzon, 2015-2016 Growth 2015 2016 Indicator Rate Target Actual Target Actual 2016 Same day arrivals 21,613,300 21,829,430 26,042,637 20.49 Domestic 21,142,633 increasing 25,576,382 20.97 Foreign 470,667 increasing 466,255 (0.94) Overnight tourists increasing 4,318,625 4,350,000 5,095,059 17.98 Domestic increasing 3,888,788 increasing 4,835,870 24.35 Foreign increasing 426,833 increasing 257, 147 (39.75) Overseas Filipinos increasing 3,004 increasing 2,084 (30.63) Accredited tourism enterprises increasing 191 increasing 227 18.85 Rooms from DOT-accredited increasing 3,188 increasing 3,847 20.67 accommodation establishments Employees in DOT-accredited increasing 4,786 increasing 5,029 5.08 establishments Source: Department of Tourism Region IV-A
Protection of Consumer Welfare
Consumer welfare improved. Level of consumer awareness and satisfaction of quality goods and services declined in 2016 and fell short of the regional target. On the other hand, monitoring of adherence to Price Act was intensified. The number of monitored firms significantly increased from 1,502 in 2015 to 6,186 in 2016. Out of these monitored firms, six were found violating but all were properly penalized. Ninety-three percent of the consumer complaints were resolved within the prescribed time of mediation. This is 13 percent higher than the regional target.
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 20
Table 3.12. Protection of Consumer Welfare, Calabarzon: 2012 to 2016 2013 2014 2015 2016 Item Target Actual Target Actual Target Actual Target Actual Level of consumer awareness and 55% 56% 60% 57% 67% 62% 62% 61% satisfaction of quality goods and services Adherence to Price Act Number of firms 1300 1109 1300 1420 1300 1502 5200 6186 monitored Number of firms found none 0 none 0 none 0 none 6 violating Proportion of violating 100% n/a 100% n/a 100% n/a 100% 100% firms penalized Acts expeditiously on all kinds of consumer complaints Percentage of consumer complaints resolved 82% 81% 82% 85% 82% 82% 80% 93% within the prescribed time of mediation Source: DTI Region IV-A
Challenges and Prospects
Calabarzon‟s industry and services sector is expected to have faster growth in 2017 due to numerous infrastructure projects approved and started in 2016. The current administration‟s policy pronouncements and pursuit of better environment for business activities, business people will have the confidence to expand operations and investments.
The ASEAN economic community established in 2015 provides opportunities for numerous industries located in the region. The economic community will bring greater access to market through direct and indirect participation to the global value chain and improved export competitiveness through greater access to competitively priced inputs and new technologies. In addition, the peso depreciation in 2016 posed a challenge in the region‟s export oriented industries as it resulted to higher production costs. The region‟s MSMEs and local suppliers will play a significant role to address this challenge by taking advantage of the opportunities brought by the ASEAN economic community cooperation. Participation in the global value chain in terms of productivity and competitiveness among MSMEs in the ASEAN is important to achieve increase in production and sales.
The Investment Promotion Group (IPG) is the region‟s institutional mechanism that promotes investment, trade and cultural exchange. The implementation of the priority investment promotion activities will boost local and foreign investments that will contribute to accelerated regional growth.
In addition, the Philippine Economic Zone Authority‟s (PEZA) current thrust is to intensify countryside development through increase number of economic zones in the regions. PEZA aims to have at least two economic zones in every region and ultimately, one economic zone in every city. This could provide opportunities to fast track economic zone developments in
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 21 the province of Quezon and Batangas. However, continued disagreement on tax incentives between PEZA and local government units posed a challenge.
Information technology and business process management (IT-BPM) is one of the priority industries in the region. Four out of the ten identified next wave cities are in Calabarzon region as part of the next wave cities for IT-BPM industry. With the emerging subsectors of the IT-BPM industry, the region can take advantage of these opportunities by attracting these types of investments in the region.
However, the challenge is to provide the available human capital equipped with the necessary skills for IT-BPM. The IT-BPM has subsectors such as contact center and business process outsourcing, global in-house centers, IT services, healthcare information management, and animation and game development.
Tourism industry is expected to significantly grow due to increasing participation of tourism establishments and LGUs in travel and trade expos and selling missions locally and abroad, aggressive promotion and marketing, timely submission of tourism reports, strengthening partnership between tourism industry players and LGUs, and compliance to standards.
On the other hand, the implementation of the progress accreditation system, a new policy, and the ASEAN accreditation standards, there is a need to develop capacity to keep up with these changes and for tourism establishments to pass the standards.
Chapter 3: COMPETITIVE INDUSTRY AND SERVICES SECTOR 22
C H A P T E R 4 COMPETITIVE AND SUST A I N A B L E AGRICULTURE AND FISH ERIES SECTOR
The chapter presents the performance of the agriculture, hunting, fishery, and forestry (AHFF) sector in Calabarzon in 2016. The AHFF contributes about 5.5 percent of the regional economy. The sector remained competitive in 2016 posting a positive growth despite challenges brought by climatic changes. The livestock and poultry sub-sector remains the strength of the Region as the top producer of chicken egg and the second major producer of chicken and hog in the country.
Assessment
Gross Value Added in AHFF increased. The gross value added (GVA) in AHFF grew by 3.4 percent from PhP72.13 billion in 2015 to PhP74.59 billion in 2016. The growth performance enabled the sector to achieve the target of increasing the GVA by 0.8 percentage points. The growth in the AHFF sector was mainly driven by the agriculture and forestry sub-sectors (Table 4.1).
Table 4.1. Gross Regional Domestic Product in Agriculture, Hunting, Fishery and Forestry Sector, Calabarzon: 2015 to 2016 (at constant 2000 prices) Value (PhP billion) Growth Rate (%) Item 2015 2016 14-15 15-16 Agriculture, Hunting, Fishery and Forestry 72.13 74.59 2.6 3.4 a) Agriculture and Forestry 54.74 57.30 5.9 4.7 b) Fishing 17.39 17.29 (6.6) (0.6) Gross Regional Domestic Product 1,303.72 1364.95 5.8 4.8 Source: 2014-2016 Gross Regional Domestic Product and PSA
The high demand for livestock and poultry, and the favorable weather condition and expansion in areas planted for crops resulted to the positive growth. However, the hot weather condition affected the stocking density in freshwater pens and cages and resulted to lesser emergence of school of fish in commercial fishing grounds which contributed to the decline in performance of the fisheries sub-sector.
More than half of the value of production in AHFF or 58.68 percent is contributed by the livestock and poultry sub-sectors while 19.39 percent is contributed by the crops sub-sector. All three subsectors posted substantial growth resulting to positive performance of the AHFF sector in 2016 despite the decline in fisheries sub-sector (Table 4.2).
Chapter 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERIES SECTOR 23
Table 4.2. Value of Production in Agriculture, Hunting, Fishery and Forestry Sector, Calabarzon: 2015 to 2016 (at constant 2000 prices) Target Actual (PhP million) Growth Rate (%) Sub-sector 2016 2015 2016 `14-`15 `15-`16 Crops increasing 15,719.57 16,056.83 (0.8) 2.1 Livestock increasing 21,662.64 23,373.26 6.6 7.9 Poultry increasing 24,522.31 25,215.80 8.5 2.8 Fisheries increasing 18,239.95 18,161.05 (6.5) (0.4) Source: Regional Agricultural Production Accounts and PSA
Rice self-sufficiency slightly reduced. In 2016, the rice self-sufficiency ratio is down by 0.2 percentage points from 16.2 percent in 2015 to 16.0 percent in 2016. The ratio is 5.96 percentage points off from the 2016 target of maintaining its 2015 level at 22 percent (Table 4.3).
Rice self-sufficiency is reached when total regional production can meet the total regional requirements for rice as food, seeds, processing, feeds, and adequate buffer stock for at least 15 days. The Department of Agriculture (DA) computes for the estimated requirements or demand based on the population and the average per capita rice consumption of 119 kilograms per year.
The average annual population growth in Calabarzon from 2010 to 2015 is 1.7 percent while the average annual growth rate in palay production in Calabarzon from 2011 to 2016 is 0.8 percent. With the above-cited growth trends, population will continue to considerably outgrow palay production in Calabarzon.
Table 4.3. Rice Self-Sufficiency Ratio in Calabarzon (in percent), 2015 to 2016 Change Target Actual (in percentage Item points) 2015 2016 2015 2016 `15-`16 Rice Self-Sufficiency 22.0 22.0 16.2 16.0 (0.2) Ratio Source: Department of Agriculture Region IV-A
Inflation went down. Inflation rates of basic food commodities went down, except for corn, meat and vegetables which resulted from the tighter food supply caused by weather-related shortfalls and rising domestic pump prices triggered by increasing international oil prices (Bangko Sentral ng Pilipinas, 2016).
In terms of achieving the target inflation rate, meat and fish commodities remains closest but still short by 1.0 percentage points to the three to five percent target for 2016.
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Table 4.4. Average Inflation Rates among basic commodities (in percent), Calabarzon Target Actual Change (% points) Commodity 2015 2016 2015 2016 `15-`16 Rice 3-5 3-5 3.2 (1.3) (4.5) Corn 3-5 3-5 1.9 10.8 8.9 Meat 3-5 3-5 1.0 2.0 1.0 Fish 3-5 3-5 3.8 2.0 (1.8) Milk, cheese & eggs 3-5 3-5 3.1 0.3 (2.8) Fruits 3-5 3-5 11.8 1.4 (10.4) Vegetables 3-5 3-5 1.0 12.2 11.2 Source: PSA
Subsector Performance
Grains production increased. Palay production increased by 3.6 percent from 392,907 metric tons in 2015 to 407,124 metric tons in 2016 (Table 4.5) due to the increase in the harvested area by 3.3 percent from 113,066 hectares in 2015 to 116,768 hectares in 2016 (Table 4.6). The early onset of the rainy season resulted to a 12.4 percent increase in area harvested for rainfed palay in the Region from 27,972 hectares in 2015 to 31,435 hectares in 2016.
The average palay yield also contributed to increased production as yield increased from 3.48 metric tons per hectare in 2015 to 3.49 metric ton per hectare. However, the 0.3 percent from the 2015 level was still short by 23.0 percent from the 2016 target yield of 4.53 metric ton per hectare. The prolonged wet weather during the main crop harvest months of October to December resulted to the standing palay crops to reach the point when it could no longer support its own weight. Thus, rice stems eventually collapsed which delayed maturity and hindered further development of planted rice crops (National Food Authority, 2016).
For the Region‟s 2016 corn production, a notable 49.4 percent increase was observed (Table 4.5). Production of white corn increased by 21.5 percent while production of yellow corn increased by 67.3 percent. The increase in corn production is the result of increased harvested area due to sufficient water supply during planting season, availability of financial assistance from private financiers, use of hybrid seeds and increased fertilizer application. The increment in area harvested for corn is reflected by the 20.2 percent increase from 29,185 hectares in 2015 to 35,084 hectares in 2016 (Table 4.6). However, despite increased corn output in 2016, white corn yield and yellow corn yield are short of their 2016 targets by 16.4 percent and 26.4 percent, respectively (Table 4.7).
Table 4.5. Rice and Corn Volume of Production (in metric ton), Calabarzon: 2015 to 2016 Growth Rate (%) Commodity 2015 2016 `14-`15 `15-`16 Palay 392,907 407,124 (3.1) 3.6 Corn 64,823 96,821 (12.8) 49.4 White Corn 25,402 30,867 (17.9) 21.5 Yellow Corn 39,421 65,954 (9.2) 67.3 Source: CountrySTAT Philippines and PSA
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Table 4.6. Rice and Corn Area Harvested (in hectare), Calabarzon: 2015 to 2016 Commodity 2015 2016 Growth Rate (%) Palay 113,066 116,768 3.3 Irrigated Palay 85,094 85,333 0.3 Rainfed Palay 27,972 31,435 12.4 Corn 29,185 35,084 20.2 White Corn 15,956 17,744 11.2 Yellow Corn 13,229 17,340 31.1 Source: CountrySTAT Philippines and PSA
Table 4.7. Rice and Corn Yield (in metric ton/hectare), Calabarzon: 2015 to 2016 Target Actual Growth Rate (%) Commodity 2015 2016 2015 2016 `14-`15 `15-`16 Palay 4.48 4.53 3.48 3.49 - 10.1 White Corn 2.00 2.08 1.59 1.74 (5.4) 9.4 Yellow Corn 4.46 5.16 2.98 3.80 10.8 27.5 Source: PSA
High Value Crops
Banana Banana production in the Region was up by 16.0 percent. Despite the 1.0 percent decline in area planted from 27,375 hectares in 2015 to 27,095 hectares in 2016, the increase in yield was enough to increase production from 96,307 metric tons in 2015 to 111,736 metric tons in 2016. The average yield of bananas at 4.12 metric tons/hectare is 17.1 percent above 2015 level but remains 84.0 percent short of 2016 target yield of 25.83 metric tons/hectare.
Pineapple Pineapple production was up by 4.3 percent. Expansion in areas planted with pineapples increased by 3.1 percent from 3,953 hectares in 2015 to 4,075.8 hectares in 2016. The pineapple yield likewise increased by 1.2 percent from 22.43 metric tons/hectare in 2015 to 22.70 metric tons/hectare in 2016. However, the resulting yield is approximately half of the targeted 45.66 metric tons/hectare for 2016.
Mango Mango production declined by 14.5 percent as the effects of Typhoon Glenda are still felt. The frequent change in temperature also caused stress to mangoes resulting to decline in production. Similarly, there was a 0.2 percent drop in the areas planted for mango. The mango yield is 3.62 metric tons/hectare, 14.5 percent lower than the 4.23 metric tons/hectare in 2015. The resulting yield is 27.9 percent short of the targeted yield of 5.02 metric tons/hectare for 2016.
Sugarcane Sugarcane production was up by 17.4 percent due to favorable weather conditions. However, areas planted with sugarcane in the Region were reduced by 8.6 percent from 29,885 hectares in 2015 to 27,305 hectares in 2016. The sugarcane yield increased by 28.5 percent from 52.83 metric tons/hectare to 67.90 metric tons/hectare. However, it remains short by 4.6 percent of the targeted 71.2 metric tons/hectare for 2016.
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Coconut Coconut production was up by 10 percent. There was also an increase of 8.1 percent in the areas planted with coconut. The increase in production and area planted resulted to an average yield of 3.13 metric tons/hectare that is 1.9 percent higher from 3.07 metric tons/hectare in 2015. The resulting yield is 251.4 percent above its 2016 target yield of 0.89 metric tons/hectare.
The increase in coconut production is a result of the intensified programs of the Philippine Coconut Authority on the Accelerated Coconut Planting/Replanting Program (ACPP) and Coconut Fertilization Project (CFP). The ACPP includes participatory coconut planting, coconut seedling dispersal and modified participatory coconut planting while the CFP includes salt fertilization and application of coconut coir-based organic fertilizer.
Coffee Coffee production posted a positive growth of about 24.0 percent while areas planted also increased by 0.5 percent from 13,409 hectares in 2015 to 13,472 hectares in 2016. The coffee yield of 0.21 metric tons/hectare is 23.1 percent above the 2015 level but 76.2 percent short of targeted yield for 2016.
Cacao Cacao production increased by 23.4 percent with a 30.4 percent expansion in the areas planted with cacao from 336 hectares in 2015 to 438 hectares in 2016. The resulting average cacao yield is 0.04 metric tons/hectare that is short by 94.4 percent of the target yield of 0.70 metric tons/hectare for 2016.
The increase in both coffee and cacao production can be attributed to the massive promotion of cacao and coffee production in the Region by the DA and the Department of Trade and Industry.
Table 4.8. High Value Crops Volume of Production (in metric ton), Calabarzon: 2015 to 2016 Growth Rate (%) Commodity 2015 2016 `14-`15 `15-`16 Banana 96,307 111,736 (7.7) 16.0 Mango 59,041 50,465 (0.7) (14.5) Pineapple 88,660 92,514 3.8 4.3 Coconut 1,379,298 1,517,414 (0.1) 10.0 Coffee 2,272 2,818 (51.6) 24.0 Cacao 14 17 (32.0) 23.4 Sugarcanea 1,578,731 1,854,037 17.4 Source: a Sugar Regulatory Administration CountrySTAT Philippines and PSA
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Table 4.9. Area Planted/Harvested of High Value Crops (in hectare), Calabarzon: 2015 to 2016 Commodity 2015 2016 Growth Rate (%) Banana 27,375 27,095 (1.0) Mango 13,972 13,950 (0.2) Pineapple 3,953 4,076 3.1 Coconut 448,905 485,208 8.1 Coffee 13,409 13,472 0.5 Cacao 336 438 30.4 Sugarcane 29,885 27,305 (8.6) Source: CountrySTAT Philippines and PSA
Table 4.10. Yield of Selected High Value Crops (in metric ton/hectare), Calabarzon: 2015 to 2016* Target Actual Growth Rate (%) Commodity 2015 2016 2015 2016 `14-`15 `15-`16 Banana 25.11 25.83 3.52 4.12 (3.3) 17.1 Mango 4.88 5.02 4.23 3.62 1.0 (14.5) Pineapple 44.38 45.66 22.43 22.70 (1.0) 1.2 Coconut 0.86 0.89 3.07 3.13 0.3 1.9 Coffee 0.87 0.88 0.17 0.21 (51.4) 23.1 Cacao 0.62 0.70 0.04 0.04 (33.3) (2.4) Sugarcane 66.90 71.20 52.83 67.90 28.5 *derived by dividing the production with area planted/harvested
Livestock and Poultry grew. The livestock industry was able to achieve its target of increasing production in 2016 except for carabao production which declined by 2.9 percent from 7,491 metric tons in 2015 to 7,277 metric tons in 2016. This was due to lesser disposition because of the lack of replacement brought by low birth rate and lower beginning inventory.
Hog production is the top performer with an increase of 8.5 percent from its 2015 level (Table 4.11). The increase in production is attributed to high demand during the election campaign and higher prices offered by traders which encouraged raisers to dispose more stocks.
Table 4.11. Volume of Livestock Production (in metric ton), Calabarzon: 2015 to 2016 Growth Rate (%) Commodity 2015 2016 `14-`15 `15-`16 Hog 336,349 365,056 6.6 8.5 Carabao 7,491 7,277 6.8 (2.9) Cattle 28,051 28,655 7.3 2.2 Goat 3,671 3,797 3.0 3.4 Source: CountrySTAT Philippines and PSA
Cattle and goat production grew by 2.2 percent and 3.4 percent, respectively. The increase in both cattle and goat output is due to election-related activities and Ramadan festivities (Padin,
Chapter 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERIES SECTOR 28
2016). The Region is the second largest contributor in cattle production accounting for 10.6 percent of the country‟s total cattle production.
The poultry industry was able to achieve its target of increasing production except for duck production which declined by 3.0 percent from 602 metric tons in 2015 to 584 metric tons in 2016. Fewer disposals due to building up of stocks in backyard farms for egg production and decline in hatched birds due to extreme hot weather during the first semester contributed to the decline in duck production.
Duck egg production increased by 11.9 percent due to sustained demand from processors of salted eggs. Similarly, chicken and chicken egg production increased by 2.1 and 4.7 percent, respectively (Table 4.12). The positive performance is brought about by producers upgrading poultry houses from conventional to tunnel ventilated farms resulting to improved farm performance. Sustained vaccination programs of the government also contributed to the better performance in poultry production.
The Region is the top producer of chicken egg in the country and accounts for 30.4 percent of the country‟s total egg production. It is also the second largest chicken producer accounting for 19.6 percent of the country‟s total chicken production.
Table 4.12. Volume of Poultry Production (in metric ton), Calabarzon: 2015 to 2016 Growth Rate (%) Commodity 2015 2016 `14-`15 `15-`16 Chicken 321,670 328,430 7.7 2.1 Chicken Egg 133,962 140,274 11 4.7 Duck 602 584 (9.5) (3.0) Duck Egg 2,099 2,349 (0.1) 11.9 Source: CountrySTAT Philippines and PSA
Fisheries production declined. Fisheries production declined with the municipal fishery posting the biggest drop at 23.8 percent from 138,034 metric tons in 2015 to 105,216 metric tons in 2016 (Table 4.13). The decline on municipal fisheries is attributed to less fishing activities due to prolonged hot weather conditions, rough seas and typhoons experienced in the coastal areas toward the end of 2016. Also, the incidence of knife fish infestation in the Laguna de Bay contributed to the decline in fish production. In response, the Laguna Lake Development Authority (LLDA) is procuring knife fish from the different municipalities around the Laguna de Bay region. In 2016, the LLDA has already procured a total of 33,598 metric tons of knife fish amounting to PhP611,960.
Commercial fisheries also declined by 20.1 percent as affected by the hot sea water temperature brought by the El Niño phenomenon experienced during the first semester of 2016 resulting to less species caught.
Aquaculture fisheries experienced high mortality and slow growth of species due to dry spell experienced during the second quarter to fourth quarter of 2016. This resulted to a decline of 0.6 percent from 174,132 metric tons in 2015 to 173,029 metric tons in 2016. Seaweed farms were affected by ice-ice disease and epiphytes resulting to scarcity of planting materials. In addition, Typhoon Karen on the last quarter washed out most seaweed farms. The low buying price offered by seaweed traders all year round likewise resulted to less aquafarms in operations. Chapter 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERIES SECTOR 29
Table 4.13. Volume of Fisheries Production (in metric ton), Calabarzon: 2015 to 2016 Growth Rate (%) Commodity 2015 2016 `14-`15 `15-`16 Commercial 66,357 52,995 (3.0) (20.1) Municipal 138,034 105,216 (5.1) (23.8) Aquaculture 174,132 173,029 (2.0) (0.6) Source: CountrySTAT Philippines and PSA
Employment decreased. The employment in AHFF sector declined by 14.3 percent from 646,000 in 2015 to 554,000 in 2016 (Table 4.14). The decline is attributed to the El Niño phenomena which persisted until the first semester of 2016. Moreover, the 2016 election could have encouraged agricultural workers to engage in election-related jobs (Caraballo, 2017).
Table 4.14. Number of Employed in Agriculture (in thousand persons), Calabarzon: 2015 to 2016 Growth Rate (%) Item 2015 2016 `14-`15 `15-`16 Total Employment 5,085 5,687 (0.2) 11.8 Employment in Agriculture 646 554 (10.8) (14.3) Source: CountrySTAT Philippines and PSA
Insurance availment increased. The total amount of crop insurance offered in 2016 was PhP97.70 million or 12.2 percent more than the 2015 level (Table 4.15). However, the amount remains short by about 94.2 percent of the target PhP1,689.26 million. The insurance covers palay, corn, high value crops, livestock, fisheries, non-crop and life term packages.
Similarly, the total number of beneficiary farmers increased by 3.98 percent from 43,640 in 2015 to 45,378 in 2016 or 28.0 percent more than the targeted number of 35,440 famers (Table 4.16). The continued coordination of the Philippine Crop Insurance Corporation with partner farmer organizations and implementing agencies such as DA, Department of Agrarian Reform and Philippine Coconut Authority contributed to the increase in number of farmer beneficiaries.
Rice, corn and high value crops insurance covers the cost of production inputs and an additional amount to cover portion of the value of the expected yield of standing crops planted in the farmland described in the insurance. Livestock insurance package covers death due to accidents, and/or diseases, and/or other covered risks affecting cattle, carabao, horse, swine, goat, sheep, poultry, and game fowls and animals. The cost of production inputs for fisheries, the value of the fish farmer/fisherfolk/grower‟s own labor and those of the members of his own household, including the value of labor of hired workers are covered under the fisheries insurance program.
Agricultural assets such as machineries, equipment, transportation facilities and other related infrastructures directly or indirectly used in the pursuit of agricultural activities including production and processing, marketing, storage and distribution of goods and services are also covered under the Non-crop Agricultural Asset Insurance. Also, there are several credit and
Chapter 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERIES SECTOR 30 life term insurance that covers death or dismemberment or disablement of agricultural producers, fisherfolk and other stakeholders due to accident.
Table 4.15. Amount of Insurances Offered (in PhP Million), Calabarzon: 2015 to 2016 Target Actual Growth Rate (%) Item 2016 2015 2016 `15-`16 Palay 720.95 23.58 29.79 26.35 Corn 83.17 5.55 4.29 (22.70) HVCC 38.04 34.25 39.06 14.04 Livestock 39.72 19.45 21.74 11.77 Non-crop insurance (NCI) 260.15 0.94 1.25 32.98 Term insurance packages (TIP) 540.67 0.14 0.16 14.29 Fisheries 6.58 3.20 1.41 (55.88) TOTAL 1,689.28 87.11 97.70 12.16 Source: Philippine Crop Insurance Corporation Region IV
Table 4.16. Number of Farmers who availed the Crop Insurance, Calabarzon: 2015 to 2016 Target Actual Growth Rate (%) Item 2016 2015 2016 `15-`16 Palay 21,419 8,381 10,732 28.05 Corn 1,553 1,757 1,025 (41.66) HVCC 888 19,111 18,526 (3.06) Livestock 823 10,293 11,659 13.27 Non-crop insurance (NCI) 888 1,573 1,814 15.32 Term insurance packages 9,267 2,248 1,302 (42.08) (TIP) Fisheries 602 277 320 15.52 TOTAL 35,440 43,640 45,378 3.98 Source: PCIC Region IV
Challenges and Prospects
The AHFF sector in the Region is mainly driven by the livestock and poultry sub-sector. As such, the sector will remain competitive as the Region remains a major producer of livestock and poultry products in the country.
However, the vulnerability of the sector to climatic conditions discourages investment and engagement of producers. Productivity in the AHFF has been adversely affected by severe weather and the periodic occurrence of the El Niño and La Niña phenomena brought about by climate change. Long term changes in the patterns of temperature and precipitation, that are part of climate change, shifts production seasons, pest and disease patterns, and modify the set of feasible crops affecting production, prices, incomes and ultimately, livelihoods and lives (Rudinas, 2013). Relatedly, employment in the AHFF sector continues to decline from 2011 to 2016 at an annual average of 5.4 percent in the number of persons employed in the sector.
Hence, to sustain growth and productivity in the AHFF sector, development interventions should be focused on value adding, processing of agricultural output and marketing system.
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Special attention should be given to linking and promoting local agricultural and fishery products and encouraging producers, especially the youth, to think of agricultural farming as a profitable job.
It is also essential for the AHFF sector to embrace technology to sustainably use resources and adapt to climate change. Solar-powered irrigation, water harvesting and bio-gas are some of the technologies that can be utilized in agricultural production. Utilizing technology that will convert water and heat from the sun into more effective input in production will contribute to food production and environmental protection. Farmers and fisherfolks should utilize climate change adaptation technologies such as planting of new crop varieties developed to withstand certain adverse effects of climate change (e.g. drought-tolerant, submergence-tolerant, early-maturing crops).
Providing our farmers and fisherfolks easy access to credit and financing, with a minimal interest, will allow them to keep up with technology and move out of the traditional subsistence farming. Credit and other risk management tools include insurance and government subsidies so farmers can be motivated to pursue innovations that have potentials to set off modernization and industrialization of agricultural initiatives (Dar, 2017).
Lastly, in line with the ASEAN integration, forming cooperatives will strengthen farmers and fisherfolks as they will have one singular voice. Promoting cooperativism among farmers and fisherfolk will boost cooperation to improve farm productivity and marketing of agricultural products. More so, financial assistance and credit without collateral are easily tapped through a cooperative.
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C H A P T E R 5
INFRASTRUCTURE DEVEL OPMENT
This chapter discusses the infrastructure development in terms of its quality, adequacy and accessibility of infrastructure facilities and services. It highlights the performance of the transportation, water resources, energy and social infrastructure sub-sectors.
Assessment
Land Transport
Roads
For 2016, the total length of roads increased by 9.90 kilometers. The total length of national roads as of December 2016 was 2,517.66 kilometers. Existing roads were improved and rehabilitated resulting to an increase in the paved roads ratio from 94 percent to 97 percent of the total national road network (Figure 5.1). The remaining 3 percent of unpaved roads are located in Quezon Province with a length of 87.66 kilometers.
Figure 5.1. Paved National Roads in Calabarzon, 2015 and 2016
Paved Road, 2015 Paved Road, 2016 Paved Unpaved Paved Unpaved 3%
6%
94% 97%
Source of data: Department of Public Works and Highways Region IV-A
National roads in good condition increased from 42.75 percent (1,072.05 kms.) to 50.03 percent (1,259.69kms) of the total road length (Figure 5.2)
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Figure 5.2 Calabarzon National Road Condition, 2015 and 2016
2015 2016
5.60% Good 4.53% 5.23% 8.03% Fair 11.78% 13.17% 42.75% Poor
50.03%
Bad 28.01% 30.82% No assessment
Source of data: DPWH Region IV-A
New road projects were completed in 2016, such as, the tourism roads funded under the DOT-DPWH Convergence Program. The projects completed under the program were the following: a) concreting of Maragondon-Alfonso Road in Cavite; b) construction of Atimonan-Mauban Road Real Section; and c) opening of the San Nicolas-Sta. Teresita- Alitagtag, Batangas Section of the Taal Circumferential Road. Continuing projects include Lobo-Malabrigo-San Juan Road and Taal Circumferential Road. Road widening projects along primary roads, construction of bypasses, diversion roads and underpass were implemented to alleviate traffic congestion. The underpass along the Manila South Road (MSR) underpass at Lucena-Tayabas intersection and construction of missing gaps to connect Cavite and Batangas via General Aguinaldo-Magallanes-Nasugbu, Lopez Bypass Road and Gumaca Bypass Road are ongoing. Bridges
The total length of permanent bridges has increased from 18,275.17 lineal meters in 2015 to 18,494.80 lineal meters in 2016. The additional bridge length of 219.63 lineal meters surpassed the targeted bridge length of 17,611 lineal meters. The number of permanent bridges increased from 646 to 649.
Water Transport
Water transport links the island municipalities and other regions to Calabarzon. It is a vital mode of transport that enables tourism and exchange of goods in the region.
The two major ports in Calabarzon are the Batangas Port and the Lucena Port. The Batangas Port is a major gateway for shipment of goods and agricultural products to the nearby islands of Mindoro, Romblon in MIMAROPA Region and Caticlan in Western Visayas Region. It also operates as a domestic passenger sea travel port and international container terminal port. Meanwhile, Lucena Port serves passengers and cargos to Marinduque, and Romblon Provinces in MIMAROPA Region and Masbate Province in Bicol Region.
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The overall throughput performance of Batangas Port in terms of passenger traffic and cargo increased in 2016 compared from the previous year (Table 5.1). Passenger traffic for inbound (disembarked) and outbound (embarked) increased by 12.6 percent and 6.9 percent, respectively. Cargo traffic in break-bulk (MT) also increased by 55.9 percent, while rolling cargo (units) increased by 10.3 percent. This is a manifestation of continuous reliance of the sea-travelling public on ro-ro vessels, fast craft, and motorized bancas as primary modes of transport for inter-island connectivity. However, number of shipcalls declined by 15.8 percent as a result of cancellation of trips due to strong southwest monsoon winds, strong undercurrent water conditions, gale warnings and shift from small to large vessels due to increasing number of passengers.
Lucena Port has maintained its upward momentum posting significant increase in inbound and outbound passenger traffic, shipcalls and both break-bulk and rolling cargos. The surge is mainly due to increased shipment of commodities and the result of the government's eco- tourism programs encouraging leisure inter-island travel to tourist destinations.
Table 5.1. Throughput of Batangas and Lucena Ports in 2015 and 2016 Batangas Lucena Particulars Change Change 2015 2016 2015 2016 (%) (%) Passenger Embarked 3,041,272 3,251,808 6.9 227,497 327,552 44.0 Disembarked 3,321,186 3,739,319 12.6 325,861 421,861 29.5 Shipcalls 39,994 33,681 -15.8 4,606 6,007 54.1 Cargo Break-bulk (MT) 95,443 1,239,811 55.9 207,974 249,257 19.9 Rolling (Units) 515,730 568,608 10.3 66,497 82,236 23.7 Source: Philippine Ports Authority Project Management Office Batangas and MarQuez
Aside from the two major ports, there are still 26 ports in the region that support the economic activities in the island municipalities of Quezon and Batangas. Five ports are under the Philippine Ports Authority port system located in the province of Batangas (Ports of Bauan, Lobo, San Juan, Calatagan and Nasugbu). The remaining 21 ports (Ports of Atimonan, Alabat, Bordeos, Calauag, Cotta, General Luna, Gumaca, Jomalig, Mabini, Mauban, Mulanay, Padre Burgos, Panukalan, Patnanungan, Perez, Polillo, Real, San Andres, Tingloy, Unisan) are under the administration of the local government units.
Electrification
The number of energized households in the Region increased from 95.40 percent in 2015 to 96.67 percent in 2016. This can be attributed to the government‟s commitment to continuously improve the reliability, availability and resiliency of energy infrastructure and facilities in the aim to alleviate poverty issues.
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 35
Table 5.2. Status of Household Electrification Regionwide, 2015 and 2016 Item 2015 2016 HH Population Projected 3,432,898 3,509,353 Served 3,274,849 3,392,611 Unserved 158,049 116,742 HH Electrification Level 95.40% 96.67% Source: Department of Energy
Among the provinces, Batangas registered the highest electrification level in 2016 at 98.14 percent followed by Cavite and Laguna at 97.81 percent and 96.59 percent, respectively. Rizal had the lowest electrification level at 94.80 percent but nonetheless, all provinces maintained an upward trend in electrification. Table 5.3 shows the status of household electrification by province in 2015 to 2016.
Table 5.3. Status of Electrification by Province, 2015 and 2016 HH HH Population Served Unserved Electrification
Province Level (%) 2015 2016 2015 2016 2015 2016 2015 2016 Cavite 879,074 898,782 856,950 879,123 22,124 19,659 97.48 97.81 Rizal 693,894 707,081 651,344 670,311 42,550 36,770 93.87 94.80
Laguna 767,077 783,706 737,816 756,974 29,261 26,732 96.19 96.59
Batangas 620,913 641,161 586,687 629,264 34,226 11,897 94.49 98.14
Quezon 471,940 478,623 442,052 456,939 29,888 21,684 93.67 95.47 Source: DOE
Irrigation
The total irrigated area in the region increased from 57,306 to 60,926 hectares. The target area of 60,566 hectares was surpassed primarily due to the ratoon3 area exceeding the target, the irrigation sector developed by 0.82 percent from 56.54 percent to 57.36 percent with Quezon province having the highest area developed with 67.82 percent or 968 ha. Development is still focused in Quezon as the 3rd and 4th districts of the province have high potential for agriculture. The Lopez Small Reservoir Irrigation Project being implemented in Lopez, Quezon has a potential area of 1,500 hectares.
Under the 2016 program of NIA, a total of 211 hectares were newly irrigated, 322 hectares was restored; 0.45 km. canal was constructed, 17.14 km. of canal lining for irrigation was opened and 44 irrigation structures were constructed.
Palay yield in the region was able to reach its target of 4.50 mt/ha. and it was expected that the palay yield for 2016 would be higher than 0.04 mt/ha as most of the previous irrigation projects were expected to be completed by 2016.
3 Ratoon is a sprout or shoot from the root of the crop which leaves the roots and lower parts of the plants uncut to give the ratoon or the stubble crop. www.dictionary.com
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 36
Water Supply
The water supply in the Region currently comes from three different types of sources: 5 from surface water; 65 from springs and 1,048 from wells. The Region has a total of 733,367 service connections to these water sources. Cavite Province has the highest service connections amounting to 239,122 as it has several urban centers and a tourist destinations. Related to this, Cavite Province has also the highest average production per month at 5,755,495 m3/month sufficiently supplementing its service connections
Table 5.4. Status of Water Supply, 2016 Ave. Ave. Service Province Surface Wells Springs Production Consumption Conn. m3/month m3/month Batangas - 487 2 5,596,943 181,212 22.64 Cavite - 326 8 5,755,495 239,132 18.47 Laguna - 135 6 5,392,992 191,245 20.9 Quezon 5 67 49 2,304,798 83,273 20.78 Rizal - 33 1,206,916 38,505 21.43 Total 5 1,048 65 20,257,144 733,367 104.22 Source: Local Water Utilities Administration Water Data Bank
Batangas Province has the highest average consumption per month at 22.64 m3/month. This can be attributed to the various industries located in the province as well as the numerous tourist destinations.
The amendment of the 1976 Water Code of the Philippines makes it more responsive to the changing needs of the country. The amendment is currently being reviewed by the Office of the Senate President. The NWRB was also able to pursue initial works for a groundwater management plan for Cavite and to construct three monitoring wells in Bacoor, Cavite.
Social Infrastructure
To ensure the delivery of basic social services to the public, the government continued to pour in huge investments on education, health and social protection facilities. Various social infrastructure assets were constructed in 2015 and 2016 and these included the construction of school buildings/classrooms, day care centers, senior citizen centers, rural/barangay health units and government hospitals.
School Buildings
The number of school buildings in the region increased with the completion of the Public- Private Partnership (PPP) School Infrastructure Project (PSIP) Phase 1 in 2016. The PSIP Phase 1 is a PhP 16.28 Billion project which involved the design, construction, maintenance and financing of 9,300 classrooms in one and two-story buildings in Regions I,III and IV-A under Build-Lease-and Transfer (BLT) scheme.
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 37
In 2015, a total of 4,217 PSIP classrooms were constructed. Though the project was expected to be completed in 2015, unforeseen factors such as weather disturbance, logistical issues, underperforming subcontractors and security concerns, moved project completion to 2016. A total of 4,255 classrooms were built in Calabarzon. Quezon had the highest share with 1,598 classrooms, followed by Laguna (902), Cavite (728), Batangas (701) and Rizal (326).
The full implementation of the K to 12 program started a significant reform in the educational system as the Program covers kindergarten and 12 years of basic education. In 2015, a total of 1,946 SHS buildings were constructed. This further increased to 2,313 SHS buildings in 2015. The increased number of SHS buildings were primarily attributable to the ongoing implementation of the K to 12 program. The construction of additional school buildings will continue to meet the demands of the additional two years in senior high school (SHS).
Health Facilities
As of 2015, there were 264 DOH registered hospitals in the region comprised of 67 government and 197 private hospitals. The province of Batangas has the highest number of hospitals and biggest number of bed capacity. In terms of services offered, these hospitals are categorized as first level and primary care hospitals.
The Regional Hospital of Calabarzon is located in Batangas City while the Provincial Hospital of Cavite, Laguna, Batangas, Rizal and Quezon are situated in the municipalities/cities of Trece Martirez, Sta Cruz, Lemery, Morong and Lucena, respectively. Other health facilities available are Drug Rehabilitation Center and Women Children Crisis Center both located in Laguna.
Table 5.5. Number of Government and Private Hospitals, Authorized Bed Capacity, 2015 Government Private Provinces Level of Services No. Bed Capacity No. Bed Capacity Cavite 13 314 41 817 Primary Care/ Level 1 Laguna 15 512 41 722 Primary Care/ Level 1 Batangas 12 120 55 2,213 Primary Care/ Level 1 Rizal 10 294 29 714 Primary Care/ Level 1 Quezon 17 420 21 952 Primary Care/ Level 1 CALABARZON 67 1,660 197 5,418 Source: Department of Health- Center for Health Development Region IV-A
The Health Facilities Enhancement Program (HFEP) include construction, repair, rehabilitation and renovation of rural health units and barangay health stations. The region has a total of 24 projects in 2015 and 45 projects in 2016. The total projects costs of HFEP Projects in 2015 and 2016 amounted to P218 millions and P251 millions, respectively. A number of hospital equipment were provided s eparately. In 2016, a budget of P379 millions was allocated for the hospital equipment alone to make the completed HFEP projects operational.
Project implementation delays were encountered due to the following factors: a) difficulty in acquiring permits and licenses from the LGUs and other concerned agencies; b) compliance to construction specifications and standards; and c) delayed release of budget for the project.
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 38
Social Services Facilities
There were five existing social welfare facilities in the Region operated by the Department of Social Welfare and Development (Table 5.6). Among the five facilities, the Field Office Resource Operation Center (FOROC) serves as warehouse of food packs for families affected by disaster. However, the facility is located in the vicinity of the west valley fault. The DSWD IV-A plans to transfer the FOROC from its existing location to Dasmariñas, Cavite.
Table 5.6. Social Welfare Facilities, 2016 Name of Description Facilities/Location Bahay Tuluyan ng mga A residential institution established to provide care, protection and Bata (Home for Girls rehabilitation to girls ages 5 to 17 years old who are victims of sexual Bagong Bayan, abuse (rape, incest, acts of lasciviousness, sexual exploitation, Dasmariñas, Cavite abandonment, negligence and physical abuse and maltreatment) The Regional Heaven An alternative form of family care providing 24 hour group living on Agriculture Compound, temporary basis to disadvantaged abused women and their qualified Rosario, Batangas dependent whose needs cannot be adequately met by their own families and relative over a period of time. It was established in 1997 with the partnership with the Congressional Spouses Foundation Inc. (CSFI) National Training Provides protection and parental care to CICL. To enable the CICLs Schools for Boys who cannot undergo rehabilitation in the community to benefit from an Barangay Sampaloc, intensive treatment of their deviant behavior and anti-social attitudes in Tanay, Rizal a residential setting and prepare him for successful adjustment with his family and community after discharge. Haven for the Elderly A residential facility that provides care to senior citizens ages 60 years Barangay Sampaloc, old and above, both male and female who are abandoned, neglected Tanay, Rizal and needy. It has a bed capacity of 300 and was established September 30, 1969. Field Office Resource This serves as the resource operation center of DSWD - Operations Center CALABARZON during disaster and has 30,000 family food packs as Barangay San Jose, stockpile at any given time . GMA, Cavite
The DSWD has also implemented their so called “need-responsive sub-projects”. Most of the projects that are identified by the community are farm-to-market roads, school building, health centers and water systems. The participation of the LGUs and concern agencies is very significant to make the project sustainable.
Challenges and Prospects
Roads
The region has to address the worsening traffic congestion in major roads and urban centers. The implementation of the railway projects such as the PNR South Rail (commuter and long haul), SLEX TR4, CALA Expressway, traffic management, road widening, bypasses and diversion roads projects in the region will help address traffic problems. The LGUs will be capacitated in traffic management through the assistance of concerned regional agencies.
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 39
Safety concerns along the highways still need to be addressed such as the following: a) immediate removal of obstructive utility posts and trees along road right-of-way; b) installation of road signs and lighting; c) provision of proper drainage system to prevent flooding; d) and preservation of structural integrity of roads and bridges.
To address the safety concerns, upgraded highway design will be applied by incorporating all features such as paved shoulders, drainage, sidewalks, and bike lanes if feasible. Safety features will be provided particularly on the identified block spots. Construction of slope protection will be done along primary roads with medium to very high level of risk to typhoons and geophysical disasters.
It is expected to intensify the expansion and improvement of access to tourism sites, industrial and ecozones, and remote areas through the implementation of the DOT-DPWH Convergence Program, DTI-DPWH ROLL-IT Program and farm-to-market road projects of various regional line agencies.
Water Transport
The challenges in water transport particularly Batangas Port are sustainability of container productivity and increase in number of ship calls especially on container vessels. Land acquisition for the Batangas Port Phase III is ongoing.
Energy
To fuel rapid industrialization and agricultural development, the government continuously explore and develop alternative energy resources, particularly the use of indigenous sources of energy like renewable energy, fossil fuels and alternative fuels while at the same time take steps to lessen carbon footprint and behold environmental responsibility.
On the challenges of natural and man-made disasters, the government is also planning to make our energy facilities and infrastructures designed to adapt to the effects of climate change, specifically on its resiliency to disasters.
Irrigation
The difficulties in right-of-way and permit acquisitions led to the delayed completion of irrigation projects. Another issue that may affect irrigation in the future is the quarrying activities in the river beds that could damage the existing irrigation facilities in the region.
In 2017, it is expected that two of the major irrigation projects will be completed in the region. These projects are the Quipot (69 percent completed) and Macalelon (78.8 percent completed). The small reservoir irrigation projects will also help increase irrigated area coverage, yield performance of palay and income levels of farmers. The projects are expected to greatly benefit Quezon province which has the highest potential of agricultural land for irrigation.
Water Supply
The Listahang Tubig or Water Register Project by the NWRB will help in facilitating improvement in water regulation and water service delivery through access to information of
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 40 participating water service providers (WSP). Once the WSPs are re-oriented, full functionality of the project will be achieved.
Social Infrastructure
The perennial challenge under the social infrastructures is its limited presence in rural and GIDA communities. Infant and maternal mortality rates and low literacy rates are evident due to lack of health and educational facilities in the remote communities. Other issues include limited access to health services, limited pool of qualified teachers and poor sanitary condition of the underprivileged.
Since the devolution of power to LGUs, priority of the LCEs is a determining factor to support the construction of social infrastructures especially during change in administration Issues on fund appropriation and non-compliance to the enabling laws, standards and practices seemed to have continued to beset the region.
Likewise, the challenge for the social infrastructure is to be able to provide enough infrastructure facilities to service the continuously growing population in Calabarzon. The proper interventions for the relocation sites should also be addressed considering that the region is now experiencing an alarming trend of in-migration where the receiving LGUs see it as a challenge to properly allocate and manage their funds to ensure the delivery of basic social services to the relocatees.
In the coming years, the demand for social infrastructure will continue to increase due to the continued implementation of the various priority projects of the government. The continuing implementation of the K to 12 Program would entail additional school buildings/classrooms to meet the demand for the added years of education. The ongoing implementation of HFEP will continue to further serve the target stakeholders and provide them the best social services possible.
Also, the government is becoming more and more proactive to collaborate with NGOs, civic societies and the private sectors. With this collaboration, additional support and investments are generated from them to provide quality social infrastructure facilities.
Convergence efforts should be pursued among government agencies to ensure efficient implementation of government services including social protection programs. More specifically, convergence on social infrastructure programs of the DepEd, DOH, DPWH, DSWD and other agencies and stakeholders must be strengthened to ensure that the target beneficiaries get full benefits of these programs especially those who belong to the marginalized sector, the IPs, people with disabilities (PWDs).
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 41
Chapter 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 42
C H A P T E R 6 TOWARDS RESILIENT AN D INCLUSIVE FINANCIAL SYSTEM
This chapter presents Calabarzon‟s 2016 performance in the banking system, microfinance services and cooperatives development. It also presents the local government‟s efforts in resource mobilization.
Assessment
Banking System
Financial inclusion is the delivery of financial services at affordable costs to all sectors of society especially the disadvantaged and marginalized group. These financial services must meet the specific needs of users without discrimination and must be readily available.
Calabarzon continues to show significant improvements in its banking system as shown by statistics on the number of banks, bank density ratio, number of automated teller machines (ATMs), amount of deposit liabilities and loan portfolio of banks.
As of 2016, Calabarzon had a total of 1,665 banks consisting of 682 universal and commercial banks, 467 thrift banks, and 516 rural and cooperative banks (Table 6.1). Forty- four new banking offices started their operations in 2016 of which 23 are universal and commercial banks and 31 are thrift banks.
Table 6.1. Number of Offices by Type of Bank, Calabarzon: 2012-2016 2016 Percentage Area/Type of Bank 2012 2013 2014 2015 2016 Share (%) Calabarzon 1,406 1,509 1,566 1,621 1,665 100 Universal and Commercial Banks 553 584 627 659 682 41 Thrift Banks 317 382 395 436 467 28 Rural and Cooperative Banks 536 543 544 526 516 31 Source: Supervisory Data Center, Supervision and Examination Sector
Universal and commercial banks account for 41 percent of the banks, followed by rural and cooperative banks with 31 percent and thrift banks with 28 percent (Figure 6.1). The continuous increase in the number of banks could be attributed to the high population, rapid urbanization and increasing number of manufacturing and other industries in the Region. On the other hand, the decline in the number of rural and cooperative banks could be the result of mergers and consolidation of banks to sustain operations.
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 43
Figure 6.1. Total Number of Banking Offices by Type of Bank, Calabarzon, 2016
Number of Banking Offices by type of Bank
Universal & Commercial Banks 31% 41% Thrift Banks
Rural & Cooperative Banks 28%
From 2015 to 2016, the province of Quezon had the highest percentage increase (6 percent) in the total number of banks followed by Batangas (4 percent) and Rizal (4 percent). The increase could be attributed to increase in population density, and increase in highly urbanized and viable hubs for business. Network expansion in these areas is indicative of banks‟ initiatives to support inclusive growth by providing access to finance for all Filipinos, regardless of their socio-economic status.
Table 6.2. Number of Banks in Calabarzon by Type, by Province, 2014-2016 Number of Number of Rural Number of Thrift `15-`16 Universal & & Cooperative Total Province Banks Change Commercial Banks Banks (%) 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 Batangas 126 134 141 104 115 135 121 121 107 351 370 383 4 Cavite 174 178 187 112 123 118 57 53 51 343 354 356 1 Laguna 179 188 188 95 104 107 159 157 160 433 449 455 1 Quezon 51 53 54 23 26 38 135 132 132 209 211 224 6 Rizal 97 106 112 61 68 69 72 63 66 230 237 247 4 Regional 627 659 682 395 436 467 544 526 516 1,566 1,621 1,665 3 Total Source: Supervisory Data Center, Supervision and Examination Sector
All five provinces in the Region continue to register increases in the number of banking offices from 2014 to 2016 (Figure 6.2). In 2016, Laguna had the most number of banks with 455 banks followed by Batangas with 383 banks and Cavite with 356 banks.
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 44
Figure 6.2. Number of Banking Offices by Province, Calabarzon: 2014-2016
500
450 400
350
300 2014 250 2015 200 2016 150
100 50
0 Batangas Cavite Laguna Quezon Rizal
Bank density ratio refers to the number of banks per city/municipality. In 2016, Calabarzon‟s bank density ratio increased to 12 as compared to 2014 and 2015 (Table 6.3). This means that there are 12 banks servicing each city/municipality in Calabarzon. The increase in bank density ratio means easier access to banking services. Rizal had the highest bank density ratio with 18 banks servicing each city/municipality while Quezon had the least bank density ratio of 5 banks servicing each city/municipality.
Table 6.3. Bank Density Ratio in Calabarzon, 2014-2016 Number of Number of Banks Bank Density Ratio Province Cities & 2014 2015 2016 2014 2015 2016 Municipalities Cavite 23 343 354 356 15 15 15 Laguna 30 433 449 455 14 15 15 Batangas 34 351 370 383 10 11 11 Rizal 14 230 237 247 16 17 18 Quezon 41 209 211 224 5 5 5 Calabarzon 142 1,566 1,621 1,665 11 11 12 Source: Supervisory Data Center, Bangko Sentral ng Pilipinas
Banks focused on expanding their market reach through the establishment of branches and the use of financial technology to boost deposit-taking and lending activities. Automated teller machines (ATMs) were installed to make banking services more accessible and available for the clients to withdraw cash, pay bills, transfer funds and do other banking transactions any day and any time.
In 2016, 282 additional ATMs were installed in the Region which brings the total number of ATMs to 2,848 as compared to 2,566 ATMs in 2015 (Table 6.4). This represents an 11 percent increase in the total number of ATMs from 2015 to 2016.
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 45
Table 6.4. Number of ATMs, 2012-2016 `15-`16 Type of Bank 2012 2013 2014 2015 2016 Change (%) Calabarzon 1,748 2,107 2,254 2,566 2,848 11 Onsite 938 1,113 1,192 1,301 1,421 9 Universal and 734 860 913 978 1076 10 Commercial Banks Thrift Banks 167 194 207 248 269 8 Rural and Cooperative 37 59 72 75 76 1 Banks Offsite 810 994 1,062 1,265 1,427 13 Universal and 720 878 936 1,099 1,250 14 Commercial Banks Thrift Banks 89 115 125 161 167 4 Rural and Cooperative 1 1 1 5 10 100 Banks Source: Supervisory Data Center, Supervision and Examination Sector
The provinces of Laguna, Cavite and Batangas recorded the most number of ATMs in the Region (Table 6.5). These provinces also register the highest percentage increase in the number of ATMs from 2015 to 2016: Batangas (13%), Cavite (13%) and Laguna (10%) and Rizal (10%).
Table 6.5. Number of ATMs in Calabarzon by Type, by Province, 2014-2016 Number of ATMs Number of ATMs `15-`16 Total Province on-site off-site Change 2014 2015 2016 2014 2015 2016 2014 2015 2016 (%) Batangas 231 257 275 166 193 233 397 450 508 13 Cavite 311 332 360 316 394 457 627 726 817 13 Laguna 347 378 416 354 414 454 701 792 870 10 Quezon 105 112 119 54 62 69 159 174 188 8 Rizal 198 222 251 172 202 214 370 424 465 10 Regional 1,192 1,301 1,421 1,062 1,265 1,427 2,254 2,566 2,848 11 Total Source: Supervisory Data Center, Supervision and Examination Sector
Figure 6.3. Number of ATMs in Calabarzon by Province, 2014-2016 1000 900 800 700 600 2014 500 2015 400 2016 300 200 100 0 Batangas Cavite Laguna Quezon Rizal
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 46
The financial industry also displayed strong support to the funding needs of their clients by extending loans. From 2015 to 2016, Calabarzon posted a 22 percent increase in bank loans and receivables amounting to PhP 25.816 billion (Table 6.6). All provinces recorded more than 10 percent increase in bank loans and receivables with Rizal Province topping all provinces with 40% increase in loans.
Table 6.6. Loan Portfolio of Banks in Calabarzon by Province (in million pesos), 2014-2016 Loans and Receivables `15-`16 `15-`16 Province Amount of 2014 2015 2016 Change (%) Increase Batangas 24,031.734 27,641.003 32,116.925 4,475.922 16 Cavite 20,462.871 23,598.259 28,397.469 4,799.210 20 Laguna 32,226.333 34,772.251 42,157.073 7,384.822 21 Quezon 13,207.566 14,932.286 17,461.789 2,529.503 17 Rizal 17,547.193 16,749.478 23,376.862 6,627.384 40 Regional 107,475.697 117,693.277 143,510.118 25,816.841 22 Total Source: Supervisory Data Center, Supervision and Examination Sector
Figure 6.4. Loan Portfolio of Banks in Calabarzon by Province (in Million Pesos), 2014-2016 45,000.000 40,000.000 35,000.000 30,000.000 25,000.000 2014 20,000.000 2015 15,000.000 2016 10,000.000 5,000.000 0.000 Batangas Cavite Laguna Quezon Rizal
Deposit liabilities are the money that the people and companies put in banks. Banks in turn put these deposits in more profitable investments to earn more. Banks continued to be a major source of fund for the production sectors which in turn generate jobs. Calabarzon posted an 18 percent increase in deposit liabilities amounting to PhP 110.337 billion from 2015 to 2016.
Cavite had the highest deposits in 2016 with PhP 216.262 billion and the highest increase in deposit liabilities at 28 percent or PhP 47,689.607 million. The increase in deposit liabilities indicates that the people trust the banking system. It also means that banks‟ marketing strategies are effective in attracting people to deposit their money in banks.
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 47
Table 6.7. Deposit Liabilities of Banks in Calabarzon by Province (in million pesos), 2014-2016 Deposit Liabilities `15-`16 `15-`16 Province Amount of 2014 2015 2016 Change (%) Increase Batangas 104,208.243 123,900.901 136,720.262 12,819.361 10 Cavite 144,383.003 168,572.396 216,262.003 47,689.607 28 Laguna 152,842.262 174,745.560 198,693.758 23,948.198 14 Quezon 46,464.554 54,312.197 62,117.787 7,805.59 14 Rizal 87,286.031 99,387.830 117,462.974 18,075.144 18 Regional 535,184.094 620,918.883 731,256.783 110,337.90 18 Total Source: Supervisory Data Center, Supervision and Examination Sector
Figure 6.5. Deposit Liabilities of Banks in Calabarzon by Province (in Millions) 2014- 2016 250,000.000
200,000.000
150,000.000 2014 2015 100,000.000 2016
50,000.000
0.000 Batangas Cavite Laguna Quezon Rizal
Microfinance Services and Cooperatives
Microfinance institutions and cooperatives offer affordable alternative financial services to low income groups who that afford the services provided by the formal lending institutions.
As of December 31, 2016, there were 2,219 cooperatives in the region of which 2,192 are primary cooperatives and 27 are secondary cooperatives. Majority of the registered primary cooperatives are under the multipurpose type of cooperatives, while the secondary are under federation type of cooperatives. Laguna is the province with the highest number of registered cooperatives followed by Batangas.
The number of registered cooperatives declined by 15.05 percent in 2016 due to the difficulties in attaining Certificate of Tax Exemption as there are requirements needed to be submitted by cooperatives to the Bureau of Internal Revenue. In addition, some cooperatives did not have enough funds to sustain their operation. Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 48
Table 6.8. Number of Registered Cooperatives in Calabarzon, 2014-2016 Type 2014 2015 2016 Primary Cooperatives Advocacy 0 0 3 Agrarian 1 1 1 Agriculture 0 0 7 Consumers 15 20 18 Credit 23 18 18 Dairy 0 1 0 Fishermen 0 0 0 Housing 0 0 0 Health Service 0 0 0 Labor Service 3 2 0 Marketing 1 12 9 Multipurpose 34 15 0 Producers 12 15 11 Service 0 0 0 Transport 14 6 7 Water Service 1 1 1 Workers 0 1 2 Sub-total 104 92 77
Secondary Cooperative Bank 0 0 0 Federation 0 0 2 Union 0 1 0 Sub-total 0 1 2
Grand Total 104 93 79 Source: Cooperative Development Authority-Calamba Extension Office
Cooperative assets grew by 5.42 percent from 2015 to 2016 (Table 6.9). The increase in assets was the result of good governance and management being implemented in the cooperatives.
Table 6.9. Total Cooperative Assets, 2015-2016 Cooperative Assets Based on 2015 2016 Partially Submitted and Encoded Audited Financial Statements 10,544,724,899.74 11,117,265,719.27 (Calabarzon only) Source: CDA-Calamba Extension Office
Compliance of cooperatives to mandatory reports increased but still did not meet the 2016 target. Despite the series of compliance review trainings conducted by CDA, there were still some cooperatives that were not able to comply with the mandatory reports. CDA is still in the process of reviewing the reasons for non-compliance.
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 49
Table 6.10. Compliance to Mandatory Reports Monitoring of 2014 2015 2016 compliance of cooperatives to 1,118 1,063 1,142 mandatory reports Source: CDA-Calamba Extension Office
Microfinance-oriented banks increased from 249 in 2015 to 278 in 2016 (Table 6.11). The province of Cavite had the most number of microfinance banks followed by Rizal. This shows that financial institutions are taking appropriate actions to address the concern on accessibility to financial options.
A total of PhP7.889 billion and PhP9.846 billion loans were extended to more than one million borrowers in 2015 and 2016, respectively (Table 6.12). Outstanding loans increased in 2016 which can be attributed to increase in expenditures. Despite the increase in expenditures, the savings component still increased in 2016.
Table 6.11. Number of Microfinance-Oriented Banking Offices 2015-2016 Number of Microfinance Oriented Change Item Banking Offices (%) 2015 2016 Calabarzon 249 278 11.6 Cavite 68 70 2.9 Laguna 47 51 8.5 Batangas 59 66 11.9 Rizal 56 68 21.4 Quezon 19 23 21.1 Source: BSP
Table 6.12. Microfinance Statistics, 2015-2016 Item 2015 2016 Amount of loans outstanding (in million pesos) 7,889.08 9,846.56 Number of borrowers 1,070,179 1,288,983 Savings Component (in million pesos) 3,291.29 4,342.69 Source: BSP
Local Government Resource Mobilization
LGUs continuously enhance and strengthen their resource mobilization to generate more revenue channels aside from Internal Revenue Allotment. Resource mobilization is critical to finance LGU initiated development programs and projects.
Majority of the income of the LGUs come from real property tax. Total real property tax collected in 2016 amounted to PhP12.813 billion followed by business tax amounting to PhP10.402 billion (Table 6.13).
Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 50
Table 6.13. Revenue Type, Targets, Accomplishments (in million pesos), 2015-2016 2015 2016 Revenue Type Target Actual Target Actual % attained Real Property Tax 12,397.8 12,462.8 15,276.37 12,813.3 83.88 Business Tax 9,289.2 9,674 10,453.67 10,402.2 99.51 Fees and Charges 3,077.3 3,300.3 3,243.89 3,655.1 112.68 Economic Enterprises 1,976.1 2,020 2,115.1 2,062.2 97.50 Source: Bureau of Local Government Finance
Although revenues have increased, the targets for real property tax, business tax and economic enterprises were not achieved. Real property tax increased by 2.81 percent, business tax by 7.53 percent, fees and charges by 10.75 percent and economic enterprises by 2.09 percent. The increase can be traced from the continuous improvement of business processes and tax collection.
Challenges and Prospects Although Calabarzon‟s financial system in 2016 has improved, financial inclusiveness has still so much room for improvement. The following concerns still need to be addressed: a) limitation on access points and increasing concentration in urban centers which discourage capital market participation and access to business financing among the marginalized sectors and rural communities; b) stringent requirements by banks which discourage micro, small and medium enterprises and the informal sector in availing financial services; and c) need to improve mobilization of financial resources into viable investment and savings mechanisms.
Efficient mobilization of financial resources and improvement of financial inclusion mechanism will help microfinance institutions to continuously provide affordable and sufficient financial services to low income population. The following should be undertaken: 1) intensification of micro-insurance and micro lending services; 2) provision of incentives like tax exemption to attract investors and increase fund source; and 3) enhancing the role of cooperatives as providers of investment packages.
Enhancing and strengthening LGU resource mobilization, on the other hand, will give opportunity for more development programs and projects in the region. Resource mobilization can be enhanced through: 1) improving government processes and transactions to reduce cost of doing business; 2) updating of local revenue code; 3) using modern technology to facilitate business transactions; and 4) implementing capacity building efforts and technical assistance to enable LGUs to find other channels of revenue.
The BSP through its sound leadership will continue its advocacies on financial inclusion, financial literacy as well as consumer education and protection. To expand access points for financial services, innovative channels are continuously being explored. The private sector is encouraged to provide financial products and services that are responsive to the needs of the underserved and unbanked areas of the country.
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Chapter 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 52
C H A P T E R 7 GOOD GOVERNANCE AND RULE OF LAW
This chapter assesses the performance of government agencies in improving the delivery of public services towards reaching the targets indicated in the Plan.
Assessment
Cities and Municipalities Competitiveness Index
In 2016, all LGUs in Calabarzon participated in the Cities and Municipalities Competitiveness Index (CMCI). From its initial implementation in 2013, the LGUs participating in the CMCI increased from 26 in 2013, 61 in 2014, 100 in 2015 and 147 or all in 20164. More LGUs participated in the CMCI through the years because the CMCI provided LGUs additional ways to showcase their capabilities in initiating a business-friendly environment.
Table 7.1 shows the most competitive LGUs in Calabarzon in 2016. The most competitive LGUs are assumed to be more attractive to future investors, as they demonstrate a more vibrant economy and offer more job opportunities.
Table 7.1. Ranking of Calabarzon LGUs in the 2016 CMCI (included in Top 10) LGU Rank Provinces Rizal 1st Cavite 2nd Laguna 4th Batangas 9th Quezon 34th Component Cities Bacoor City, Cavite 4th Antipolo City, Rizal 6th Imus City, Cavite 8th San Pedro City, Laguna 10th 1st and 2nd Class Municipalities Cainta, Rizal 1st Taytay, Rizal 2nd General Trias, Cavite 3rd Angono, Rizal 6th Rodriguez, Rizal 9th 3rd to 6th Class Municipalities Infanta, Quezon 1st Pagsanjan, Laguna 4th
In 2015, many Calabarzon LGUs landed in the top 10 in either the Economic Dynamism Pillar, Infrastructure Pillar or both. In addition, two 1st to 2nd class municipalities landed in
4 CMCI 2016 LGU Rankings: http://www.competitive.org.ph/cmcindex/pages/rankings/index.PhP.
Chapter 7: GOOD GOVERNANCE AND RULE OF LAW 53 the top 10 for all pillars. These are the municipalities of Cainta and Taytay both in the province of Rizal.
Top ranking LGUs reported that investments have increased in their areas as a result of the CMCI. An example is the City of Gen. Trias wherein Purefoods will expand its processing plant worth PhP 8 billion, Robinsons availed of its tax holiday, and Unilever will soon to follow. Likewise, Taytay, Rizal have reported increased visitors from nearby areas, new investments in infrastructures, expansion of business establishments, housing facilities, construction of warehouses for its garment industry, and recipient of numerous awards (i.e. Galing Pook, GAD Best Implementer, Seal of Good Local Governance, etc.). In addition, Infanta, Quezon boosted its tourism industry and investment for the development of commercial port.
Streamlined Business Permit and Licensing System
The number of LGUs with streamlined Business Permit and Licensing System has increased from 123 in 2015 to 138 in 2016. All LGUs were using the unified form. However, most of the LGUs were non-compliant in terms of number of steps, number of signatories and processing time (for renewal). The LGUs were set to undergo orientation and trainings to capacitate them in formulating action plans/strategies for streamlining BPLS.
Seal of Good Local Governance Award
The Seal of Good Local Governance (SGLG) encourages and challenges all LGUs to improve their performances and service deliveries on Financial Administration, Disaster Preparedness and Social Protection, among others. For 2016, 17 LGUs in Calabarzon were conferred with the SGLG awards. The three Provinces of Batangas, Laguna and Rizal, the Cities of Bacoor and Imus in Cavite, San Pedro in Laguna, and Batangas City, and the municipalities of Malvar, San Jose and Taal in Batangas; Carmona and Ternate in Cavite; Los Baños in Laguna; Gumaca and San Antonio in Quezon; and Angono and Tanay in Rizal were given the Seal of Good Local Governance.
With the more extensive requirements for the SGLG, there are fewer LGUs awarded with the Seal compared to 26 LGUs in 2015. This presents the high standard of the SGLG and connotes that LGUs awarded with the SGLG are very competent.
The LGUs conferred with the SGLG were awarded with the Performance Challenge Fund.
Full Disclosure Policy Portal Posting
The number of LGUs that are fully compliant with the Full Disclosure Policy Portal Posting have been increasing from 89 percent in 2013, 93 percent in 2014, and 96 percent in 2015. However, the rate declined to 88 percent in 2016 due to a system failure that led to the accidental deletion of uploaded documents during the last quarter of 2016. The DILG - Bureau of Local Government Supervision has now installed a mechanism to store the data uploaded. The posting of documents in the Portal is one of the requirements in order to avail of loans and to be conferred of the SGLG.
Chapter 7: GOOD GOVERNANCE AND RULE OF LAW 54
Strategic Performance Management System
For 2016, all regional line agencies (RLAs) were compliant with the Strategic Performance Management System (SPMS). This is a seven percent increase compared to the previous year. Likewise, agencies with functional SPMS increased to 94 percent this year from 89 percent in 2015, as a result of the effective advocacies and monitoring activities of the Civil Service Commission. The SPMS is a tool in ensuring that the employees‟ performances are aligned to the objectives and priorities of the organizations.
Anti-Red Tape Act
In 2015 compliance of RLAs to the Anti Red Tape Act (ARTA) showed that 24 RLAs got excellent rating, 68 good, 7 acceptable, 1 failed, and 0 outstanding. In 2016, the CSC shifted its target to LGUs, local water districts, state universities, and some branches of Landbank. Out of the total 128 agencies surveyed, 2 received excellent ratings, 1 outstanding, 91 good, and 4 acceptable. Thirty agencies were subjected to intervention such as the Service Delivery Excellence Program to ensure delivery of excellent service to the public. The CSC continues to advocate for the compliance of the RLAs to the ARTA to ensure better public service.
Plan Formulation
All the provinces in the Region have duly-endorsed Sanguniang Panlalawigan Disaster Risk Reduction and Climate Change Adaptation - Enhanced Provincial Development and Physical Framework Plans (DRR/CCA-PDPFP) since 2016. These PDPFPs outline the long-term plans of the provinces towards achieving the desired development, sustainability and resiliency.
On the other hand, reports show that in 2016, only 34 LGUs have approved Comprehensive Land Use Plan (CLUPs), while 7 have are for approval by the Sanggunian, 15 are for deliberation, and 4 for public hearing. Twenty LGUs need assistance in their CLUP preparation and 48 LGUs are for monitoring.
Likewise, there were only 9 cities and 23 municipalities with Comprehensive Development Plans.
Mainstreaming Gender and Development
For the last three years, the Region has been pursuing the mainstreaming of Gender and Development (GAD). From 2014 to 2016, all Calabarzon LGUs have submitted their GAD Plans and Budgets including their GAD accomplishment reports for 20165. This simply shows the compliance of the LGUs to the implementation of the Magna Carta of Women.
Same as last year, all LGUs have designated GAD Focal Point System. Moreover, 58 percent or a total of 86 of the Calabarzon LGUs have formulated GAD Codes in 2016. These include 5 Provinces, 13 cities, and 68 municipalities.
5 Department of the Interior and Local Government (DILG) Region IV-A Annual Report 2016. Chapter 7: GOOD GOVERNANCE AND RULE OF LAW 55
Lupon Tagapamayapa Incentives and Awards
The Lupon Tagapamayapa Incentives and Awards recognizes the barangays with exemplary performance in settling disputes at the grassroots level6. Each winner receives PhP 50,000.00 cash prize that will be utilized for development projects of the barangays relative to the implementation of the Katarungang Pambarangay. The following were the 2016 winners for the four categories:
• Barangay Marketview, Lucena City - Highly Urbanized City • Barangay Mamatid, Cabuyao City, Laguna - Component City • Barangay Cagsiay 1, Mauban, Quezon - 1st to 3rd Class Municipality • Barangay Bataan, Sampaloc, Quezon - 4th to 6th Class Municipality
Drug Rehabilitation Interventions
The number of the rehabilitation interventions increased from 19,096 in 2015 to 29,536 in 2016. Likewise, the number of compliant clients under supervision, increased from 2,387 in 2015 to 2,769 in 2016. The increase was attributed to influx of referrals from the courts and the Board of Pardons and Parole. The continuous interventions for the rehabilitation of clients were extended by the dedicated and conscientious probation officers that despite lack of officers, they continuously went out of their way to help these clients become productive and law abiding citizens of the community.
However, the jail population increased from 14,545 in 2015 to 18,947 in 2016. The number of drug-related inmates likewise increased from 8,107 in 2015 to 12,318 in 2016. This increase is attributed to the Oplan double barrel and Operation Tokhang by the law enforcement agencies.
Challenges and Prospects
The continuous improvement of the competitiveness ranking of the LGUs in Calabarzon boosts the business-friendly environment in the Region. This attracts more investments and businesses to locate and establish their enterprises that will eventually generate employment opportunities. The rewards and incentives program of the government encourages the LGUs to improve their services. Implementation of the Business Processing and Licensing System will also improve efficiency and reduce cost of doing business.
However, improving the ranking and performance of the lagging LGUs, especially for GIDAs, has to be pursued. Infrastructure and ICT connectivity must be put in place. Likewise, advocacies and monitoring of anti-corruption efforts must be intensified. Implementation of efforts which promotes transparency, accountability and efficiency up to the barangay level should be improved. In addition, the implementation of anti-drug campaign of the government congests the jail facilities as well as other peace and order issues in the region must be addressed to facilitate a safe environment for the whole region and its economy. It should be implemented in all provinces of Calabarzon.
6 Ibid.
Chapter 7: GOOD GOVERNANCE AND RULE OF LAW 56
C H A P T E R 8 SOCIAL DEVELOPMENT
This chapter shows the social development accomplishments of the Region vis-à-vis its targets from 2015 to 2016 on the following three sub-sectors: a) Health and Nutrition; b) Education and Training; and c) Social Protection and Welfare. The facilitating and hindering factors in the achievement of the regional targets were also discussed.
Assessment
Health and Nutrition
The Region achieved the targets on the following indicators: a) births attended by health professionals; b) births delivered in health facilities; c) infant mortality ratio; d) under five mortality ratio; e) tuberculosis (TB) case detection; f) TB success rate; g) malaria mortality; h) malaria morbidity; i) regional health insurance coverage; and j) percentage of household with access to safe water. The positive performance can be attributed to the improvement in health facilities, implementation of new health programs, improvement in the service delivery of basic health services, intensified health and nutrition advocacy campaigns, capacity development for front liners, and increase in budget for TB control and vector-borne diseases.
Despite the positive performance of the Region in 10 out of 18 health targets, the Region fell short on many of its targets particularly on the following indicators: a) maternal mortality ratio; b) medical doctors to population ratio; c) nurses to population ratio; d) midwives to population ratio; e) Human Immunodeficiency Virus (HIV) prevalence rate; f) contraceptive prevalence rate; g) percent of one year old fully immunized children; and h) percentage of households with sanitary toilets. The primary reasons for the non-attainment of targets were due to insufficient health manpower, proximity of the Region to Metro Manila where HIV cases are high, lack of counsellors on family planning, low availment of health and nutrition interventions, limited knowledge on proper health and nutrition among mothers during pregnancy, and lack of indispensable nutrition specific programs and projects, and limited fund allocations.
Maternal and Child Mortality
Maternal mortality ratio slightly improved in 2016 at 63 deaths per 100,000 live births (Table 8.1). However, the Region is still far behind its target of 52 deaths per 100,000 live births. Non-achievement of the target on maternal mortality can be attributed to weak coordination among program implementers, poor service delivery networks and limited trained manpower. At the local level, the low prioritization and lack of policies addressing maternal mortality also contributed to the poor performance.
In terms of births attended by health professionals and proportion of births delivered in health facilities, the Region posted positive performance with an increase of 3 percentage points from 88 percent in 2015 to 91 percent in 2016 and 4 percentage points from 84 percent in 2015 and 88 percent in 2016 (Table 8.1). The positive performance can be attributed to increase in advocacy activities for clients, conduct of pregnancy tracking, implementation of Basic Emergency Maternal Obstetrics and Newborn Care Program in health facilities, and improvement of health facilities through Health Facility Enhancement Program.
Chapter 8: SOCIAL DEVELOPMENT 57
Infant mortality rate increased from 9 infant deaths per 1,000 live births in 2015 to 10 infant deaths in 2016. Despite a slight increase, the Region met its end of plan target on infant mortality rate which is 22 infant deaths per 1,000 live births in 2016. On under-five mortality rate, the Region recorded 13 deaths per 1,000 live births both in 2015 and 2016 and achieved its end of plan target (Table 8.1). The attainment of the target on infant mortality and under- five mortality can be attributed to improved service delivery of basic health services and its intensified advocacy campaign.
Table 8.1. Mortality Ratios in Calabarzon, 2015-2016 2015 2016 Item Target Actual Target Actual Maternal Mortality Ratio 30 76 52 63 (per 100,000 live births) Infant Mortality Ratio 25 9 22 10 (per 1,000 live births) Under Five Mortality Ratio 25 13 25 13 (per 1,000 live births) Source: DOH Region IV-A
Health Manpower
The provision of quality health services can be attributed to the increasing number of health manpower in the Region. Although the end of plan targets for health manpower to population were not attained, health manpower to population ratio significantly improved from 2015 to 2016. There have been significant increases in the number of medical doctors to population such that the ratio decreased from 1:84,624 in 2015 to 1:56,052 in 2016 and the nurses to population ratio also increased significantly and almost achieved its target ratio of 1:20,000. The midwives to population ratio also improved from 1:12,542 in 2015 to 1:8,042 in 2016 (Table 8.2). However, challenges in hiring still arise such as low takers for doctor positions, restrictions on the number of hired local LGU personnel as mandated by law, and limited budget.
Table 8.2. Health Manpower to Population Ratio in Calabarzon, 2015-2016 2015 2016 Item Target Actual Target Actual Medical Doctors 1:20,000 1:84,624 1:20,000 1:56,052 Nurses 1:20,000 1:32,867 1:20,000 1:20,206 Midwife 1:5,000 1:12,542 1:5,000 1:8,042 Source: DOH Region IV-A
Chapter 8: SOCIAL DEVELOPMENT 58
Communicable and Non-communicable Diseases
In terms of communicable diseases, the Region posted increases on HIV and TB cases. The number of HIV cases in the Region increased from 1,267 cases in 2015 to 1,426 cases in 2016 (Figure 8.1). The increase in cases can be attributed to the region‟s proximity to Metro Manila, and the existence of ports that is associated with HIV cases. In 2016, the Region achieved a TB case detection rate of 97 percent, exceeding the target of 90 percent. The Region also attained the end of plan target of 90 percent on TB success rate in 2016 (Figure 8.1).
DOH Region IV-A attributes the increase in reported incidence as a positive result of increased awareness on HIV testing. As compared to previous years, there was lower awareness and advocacy regarding the existence of HIV testing facilities and clinics in nearby areas and also inadequate equipment for testing.
Among the factors that contributed to the success rate of TB cases include intensified case finding activities especially in vulnerable population, capability building for front liners on TB control and prevention, shortened and enhanced treatment course regimen, increased funding for TB control including purchase of TB drugs and partnerships with other organizations in prevention and control.
Figure 8.1. TB Case Detection and Success Rates in Calabarzon 98% 97% 96% 96%
94%
92% 91% 90% 90% 90% 90% 90% 90%
88%
86% 2015 TB case 2016 TB case 2015 TB success rate 2016 TB success rate detection detection Target Actual
Source of data: DOH Region IV-A
Calabarzon has no reported cases on malaria mortality and malaria morbidity. According to DOH Region IV-A, Cavite and Batangas provinces are declared Malaria-free. The success was due to increase in the budget allocated for prevention and control of vector-borne diseases, strengthened surveillance for both human cases and vectors of the disease and partnerships with private medical providers. Meanwhile, sustained efforts are needed to ensure the elimination of Malaria in Laguna, Quezon and Rizal provinces in the next five years to be declared Malaria-free.
Chapter 8: SOCIAL DEVELOPMENT 59
Nutrition
The Region posted a slight decrease in the prevalence of underweight and severely underweight preschool children from 5.12 percent in 2015 to 4.90 percent in 2016. However, the Region did not achieve its target on decreasing underweight and severely underweight children (Figure 8.2). According to the FNRI-DOST Updating Survey in 2015, the hindering factors include low knowledge on proper health and nutrition among mothers during pregnancy, poor caring capacity of mothers as manifested by poor infant and young child feeding practice and poor implementation and low availment of health and nutrition interventions for women during pregnancy.
On the other hand, there is an increasing prevalence of over-nutrition in the Region. There was an increase of 2.14 percent from 2.16 percent prevalence in 2015 to 4.30 percent prevalence in 2016 . Thus, the end of plan target of 1 percent over-nutrition was not attained (Figure 8.2). Based on the FNRI-DOST Updating Survey (2015), over-nutrition in the Region resulted from the high prevalence of bottle-feeding (55.2 percent) among infants, unhealthy lifestyles due to rapid rise of fast food chains and convenience stores and physical inactivity of people in the region.
In Calabarzon, the proportion of households with per capita intake below 100 percent dietary energy intake is at 31 percent. This can be attributed to the lack of indispensable nutrition specific programs including key projects that are capable of delivering planned nutrition outcomes as stipulated in the Philippine Plan of Action for Nutrition (PPAN). Other contributing factors include poverty, disaster vulnerability of some areas and high percentage of food insecure households in the Region.
Figure 8.2. Nutrition Data in Calabarzon, 2015-2016 6.00% 5.12% 4.90% 5.00% 4.48% 4.30% 4.11% 4.00%
3.00% 2.16% 1.60% 2.00% 1.00%
1.00%
0.00% 2015 Underweight 2016 Underweight 2015 Prevalence of 2016 Prevalence of and severely and severely over-nutrition over-nutrition underweight underweight Target Actual
Source of data: National Nutrition Council Region IV-A
Chapter 8: SOCIAL DEVELOPMENT 60
Other health and nutrition concerns
The Region did not meet its universal target on one year old fully immunized children and the number of fully immunized children decreased from 65 percent in 2015 to 62 percent in 2016 (Figure 8.3). The late delivery of supplies and materials was cited as the primary reason for lower coverage.
On the other hand, the Region was able to attain its 100 percent target on health insurance coverage due to increase in funding allotted for health insurance of indigents.
Figure 8.3. Other Health and Nutrition Indicators in Calabarzon, 2015-2016 120.00% 100% 100% 100% 95% 100% 100.00% 62%
80.00% 65% 61% 60.00%
40.00%
20.00%
0.00% 2015 Health Insurance2016 Health Insurance 2015 Percent of 1yr 2016 Percent of 1yr Program Coverage Program Coverage old fully immunized old fully immunized Target Actual
Source of data: DOH Region IV-A
The contraceptive prevalence rate increased from 25 percent in 2015 to 28 percent in 2016. Despite an increase of 3 percentage points, the Region failed to reach its end of plan target of 36.10 percent (Figure 8.4). Failure to meet the target was due to inadequate number of counsellors on family planning, delayed delivery of family planning commodities resulting to stock-outs in the health centers, and problems on recording and reporting of the target client list in health centers.
Households with sanitary toilets increased from 2015 to 2016 by 11 percentage points and exceeded the end of plan target (Figure 8.4). Meanwhile, the number of households with access to safe water increased from 60 percent in 2015 to 97 percent in 2016. Despite the improvements, there is a still a need to improve data recording and reporting to validate the results of environmental health indicators.
Chapter 8: SOCIAL DEVELOPMENT 61
Figure 8.4. Contraceptive Prevalence Rate, Access to Safe Water and Sanitary Toilets 120.00% 97% 100.00% 90% 90% 90% 90%
80.00% 60% 66% 55% 60.00% 34% 36% 40.00% 25% 25%
20.00%
0.00% 2015 2016 2015 HH with 2016 HH with 2015 HH with 2016 HH with Contraceptive Contraceptive acces to safe acces to safe sanitary toilets sanitary toilets Prevalence Prevalence water water
Target Actual
Source of data: DOH Region IV-A
Education and Training Services
Basic Education
The completion and cohort survival rates in all levels improved and exceeded the targets which indicate better retention and reduced drop-out rates. However, enrolment data for SY 2015-2016, showed that the desired level of participation rate was not met.
Figure 8.5. Net Enrolment Ratio (NER) of Kindergarten, Elementary and Secondary SY 2014-2015 and SY 2015-2016 100.00% 100.00% 100.00% 98.10% 100.00% 93.90% 95.00% 91.91% 90.00% 87.70% 85.00% 80.00% 76.96% 77.83% 75.00% 70.68% 70.00% 68.33% 65.00% 60.00% 55.20% 55.00% 50.00% Kinder 15-16 Elem 14-15 15-16 Secon 15-16 SY 14-15 14-15 Actual Target
Source of data: Department of Education Region IV-A
The basic education fell short of its target for the SY 2015-2016 in terms of net enrolment. The secondary level recorded the highest deficit at 32.5 percent while the elementary showed
Chapter 8: SOCIAL DEVELOPMENT 62 the lowest at 20.27 percent. Despite posting the highest (Net Enrolment Ratio) NER, the biggest NER decline from SY 2014 to 2015 to SY 2015 to 2016 was recorded in elementary at 14.08 percent. In Kindergarten, the ratio only decreased by 6.28 percentage points.
According to the 2016 Annual Poverty Indicators Survey (APIS), the top reason for children not attending school in the Philippines among population 6-24 years old is early marriage and family matters (42.3 percent). Such finding may require more effective teaching of Values and Sex Education in the basic curriculum as well as strengthened guidance counseling support for students with family problems. Other reasons cited were high cost of education (20.2 percent) and lack of personal interest (19.7 percent). Families also migrate to other location in search for jobs resulting to incomplete schooling of their children.
With the issues in school attendance cited in the 2016 APIS, some interventions were implemented to augment the gap in the basic education sector and address the causes of non- attendance to school. Among the prominent programs are the Alternative Learning System for the out of school youth which aims to bring back the school drop-outs to school and the conditional cash transfers or Pantawid Pamilyang Pilipino Program (4Ps) that is intended to support education expenses of families. The possible effect of the 4Ps on the improved completion rates for elementary and secondary levels in SY 2015-2016 by 12.53 and 4.59 percent, respectively, needs to be verified.
Table 8.3. Net enrolment, Completion and Cohort Survival Rates for Basic Education SY 2014-2015 SY 2015-2016 Indicators Accomplishment Target Accomplishment Target Net enrolment rate in 76.96% 100.00% 70.68% increasing kindergarten increased Net enrolment rate in 91.91% 98.10% 77.83% 100.00% elementary increased Net enrolment rate in 68.33% 87.70% 55.20% 93.30% secondary increased Completion rate in 82.25% 81.10% 94.78% 82.50% elementary increased Completion rate in secondary 80.20% 75.30% 84.79% 75.50% increased Cohort survival rate in 84.79% 84.70% 95.26% 86.80% elementary increased Cohort survival rate in 82.67% 83.00% 86.35% 83.90% secondary increased Source: DepEd Region IV-A
Cohort survival rate in elementary surpassed its target by 8.46 percentage points and improved by 10.47 percentage points during the same period. The secondary level, on the other hand, also showed an increase of 3.68 percentage points from SY 2014-2015. The improvement in student retention and completion can be attributed to existing DepEd Special Curricular Programs and child protection policies including the Anti-Bullying Act of 2013, feeding programs in partnership with LGUs and NGOs, and distribution of school supplies and materials.
Chapter 8: SOCIAL DEVELOPMENT 63
Technical Vocational Education and Training
The Region performed well in terms of Technical Vocational Education and Training (TVET) as it exceeded its targets on enrolment, graduates, persons assessed, persons certified, and certification rate.
In 2016, TVET enrolment and graduation rate surpassed its target by 16.27 percentage points and 27.96 percent points, respectively. Compared to 2015, the enrolment and graduation rates improved by 8,457 and 22,552. The increase in the number of enrollees and graduates was attributed to the effective implementation of programs and projects providing student assistance and scholarships such as Private Education Student Financial Assistance, Training for Work Scholarship, and Special Training for Employment Program, among others.
Figure 8.6. Number of Persons Assessed and Certified and Certification Rate 250000.00 100%
98%
200000.00 96%
94% 150000.00 92% Persons Assessed
90% Persons Certified 100000.00 Certifcation Rate 88%
50000.00 86% 84%
0.00 82% 2015 2016
Source of data: Technical Education and Skills Development Authority Region IV-A
The number of persons assessed under TVET also exceeded its 2016 target by 20 percentage points and showed improvement compared to 2015 with an increase of 35,047 assessed persons. The increase in the number of persons assessed indicates the growing recognition and need of public and the industries on the importance of skilled workers‟ competence. Various industries provide premium to employees and applicants who undertake TVET assessment and certification. TESDA also imposed a mandatory assessment for all TechVoc providers, contributing to the increase in the number of persons assessed.
Of the 204,289 individuals assessed, 88.4 percent passed the certification. While the 2016 certified individuals exceeded its target for the year of 85 percent, this is slightly lower than the 2015 figure of 88.8 percent which can be due in part to the higher number of persons assessed.
Higher Education
From the target of 55,660, the Region was able to achieve a total of 72,480 graduates; thus exceeding its targets. This is also 10,607 higher than the graduates of the previous year.
Chapter 8: SOCIAL DEVELOPMENT 64
Majority of the graduates are from the fields of business administration, education science and technology, and information technology-related discipline. On the other hand, few graduated from fine and applied arts, and law and jurisprudence.
The Region improved its performance in higher education in terms of program certification, masteral (MA) and doctoral graduates (PhD). Program accreditation, a quality assurance mechanism to ensure that HEIs continuously improve, exceeded its target by 18 percent. In 2016, a total of 637 programs were accredited which increased by 26.4 percent from 469 programs in 2015. Moreover, Center of Excellence programs and Center of Development programs also surpassed the 2016 target and showed an increase of 4 and 7 programs from 2015, respectively.
Table 8.4. COE Programs, COD Programs, and Number of Graduates in Higher Education 2015 2016 Indicators Accomplishment Target Accomplishment Target Center of Excellence (COE) 14 5 18 11 Programs Center of Development (COD) 12 5 19 10 Programs Higher education faculty with MA 2,211 2,211 7,748 7,586 Higher education faculty with 1,958 1,958 2,223 1,983 PhD Higher education graduates 61,873 54,660 72,480 55,660 increased Source: Commission on Higher Education Region IV-A
The grants included in the K to 12 Transition Program and other financial assistance offered by CHED to HEIs may have contributed to the increase of the HEIs‟ accredited programs. An increasing number of HEIs also included enhancement and accreditation of their programs in their strategic plans and budget, recognizing the competitive and internationalization trends in higher education.
The substantial rise in the number of MA graduates of 5,537 in 2016 was facilitated by various graduate scholarships and other forms of assistance offered. Progress in faculty development in terms of PhD attainment also increased by 12 percent to 2,223 in 2016 from 1,958 in 2015. This was encouraged by inclusion of post-graduate achievements in the development programs of various academic institutions.
Social Protection and Welfare
Social protection expanded
The Region‟s poverty incidence declined from 11.9 percent in 2009 to 9.1 percent in 2015. The decline in poverty incidence maybe attributed to the improvement in the overall economic performance of the Region wherein the „transient poor‟ households or the households that live just below the poverty threshold were able to cross the poverty line because some household members might be able to find jobs or engage in business activities.
Chapter 8: SOCIAL DEVELOPMENT 65
Improvement in the living conditions particularly of the poorest households in the Region because of the implementation of various social protection programs are yet to be ascertained. Some programs that are expected to contribute in improving the living conditions of the poor are: Pantawid Pamilyang Pilipino Program (4Ps) which provides conditional cash grants to poor households, Special Program for the Employment of Students (SPES) under the Bridging Employment Assistance Program for the Youth, assistance to child laborers, Overseas Filipino Workers (OFW) and vulnerable workers, and social pension for poor senior citizens.
In 2016, the target areas covered by 4Ps remained at 100 percent. However the number of poor households covered by 4Ps decreased slightly by 3.7 percent from 328,256 in 2015 to 316,033 in 2016 (Figure 8.7) since some of the former beneficiaries of the program are now classified as non-poor and some families were no longer eligible as their children have finished college. The slight decline is also due to the DSWD moratorium on the approval of encoded registration which means that no additional beneficiaries were included. Furthermore, 100 percent of 4Ps beneficiaries were covered by the Philippine Health Insurance Corporation.
Figure 8.7 HHs covered by CCT 340,000
335,000 333,795
330,000 328,256
325,000 323,765
320,000 Targets Number 316,033 Actual 315,000
310,000
305,000 2015 2016 Year
Source of data: Department of Social Welfare and Development Region IV-A
Only 55 child laborers were assisted in 2016, which is relatively low compared to 1,636 child laborers assisted in 2015. This may be attributed to the implementation of Child Labor Program.
Overseas Filipinos (OFs) are among the most vulnerable since they are exposed to exploitation. Thus, it is important that they are socially secured. However, in 2016, the number of OFs covered by social security decreased from 100 percent in 2015 to 94 percent, as some OFs became in-active or have stop paying membership contribution. Despite the decrease in membership contribution, OWWA continues to provide social protection services to both active and non-active members. The number of distressed OFs assisted decreased
Chapter 8: SOCIAL DEVELOPMENT 66 from 303 in 2015 to 41 in 2016 which may be due to poor information dissemination of OFWs services at the local level, vigilance and better preparedness of OFs.
The youth beneficiary of Special Program for Employment of Students (SPES) decreased slightly from 13,525 in 2015 to 13,221 in 2016, but is still above the target (Figure 8.8). There was also an increase in fund allocation of local government units.
Figure 8.8. Youth provided with bridging employment assistance 13,800 13,600 13,525 13,400 13,221 13,200 13,000 12,874 12,800 Targets
Number 12,600 12,481 12,400 Actual 12,200 12,000 11,800 2015 2016 Year
Source of data: DOLE IV-A
The number of vulnerable workers provided with emergency employment surpassed targets and more than tripled from 8,801 in 2015 to 31,261 in 2016 (Figure 8.9). The same is true for workers enrolled in various social protection programs which increased significantly from 4,489 to 38,232. This may be attributed to the on-time submission of concerned LGUs of the requirements for Tulong Panghanap Buhay sa Ating Disadvantaged/Displaced Workers or TUPAD.
Figure 8.9. Vulnerable workers provided with emergency employment
35,000 31,261 30,000
25,000 21,478
20,000
15,000 Targets Number 10,000 8,801 Actual 5,000 2,402 - 2015 2016 Year
Source of data: DOLE IV-A
Chapter 8: SOCIAL DEVELOPMENT 67
On the other hand, the number of workers in the informal sector provided with emergency employment or livelihood assistance also increased from 5,992 to 6,971 (Figure 8.10) due strengthened advocacy of the LGUs, Civil Society Organizations, and government agencies.
Figure 8.10. Workers in the informal sector provided with emergency employment 8,000 6,918 6,971 7,000 5,992 6,000
5,000 4,457 4,000 Targets Number 3,000 Actual 2,000 1,000 - 2015 2016 Year
Source of data: DOLE IV-A
In contrast, the number of workers in the informal sector provided with emergency employment and/or income augmentation under Bottom-Up-Budgeting (BUB) decreased from 4,147 to 1,894 and the target was not met (Figure 8.11), due to the poor compliance of the concerned LGUs on some of the requirements under the BUB. The Region failed to utilize 100 percent of the BUB funds mostly due to political and environmental issues, internal conflicts, and unliquidated grants.
Figure 8.11. Workers in the informal sector provided with emergency employment under BUB 4500 4072 4147 4000 3500
3000
2500 2232 1894
2000 Targets Number 1500 Actual 1000 500 0 2015 2016 Year
Source of data: DOLE IV-A
Chapter 8: SOCIAL DEVELOPMENT 68
The number of indigent senior citizens covered by social pension increased by 14.4 percent from 72,285 in 2015 to 82,661 in 2016 (Figure 8.12) due to strengthened partnership and better coordination with the LGUs. Despite the increase in the number of beneficiary senior citizens, there are still issues related to out-of-date payrolls such as presence of deceased beneficiaries, misspelled names, and lack of address of beneficiaries that needs to be addressed to make the system for efficient.
Figure 8.12. Number of indeigent senior citizens covered by social pension 90,000.0 82,661 80,000.0 72,285 70,000.0 60,938 60,000.0 52,500 50,000.0
40,000.0 Targets Number 30,000.0 Actual 20,000.0 10,000.0 - 2015 2016 Year
Source of data: DSWD IV-A
Access to Asset Reform
The number of hectares of land distributed under the Comprehensive Agrarian Reform Program continuous to increase but not in a desirable pace. The Region was not able to meet the target number of hectares to be distributed in 2016 having able to distribute only 2,116 hectares out of its total target of 4,799 hectares (Figure 8.13).
Figure 8.13. No. of hectares of land distributed under CARP 7,000 6,209 6,000 4,799
5,000
4,000 3,566 3,000 Targets Number 2,116 2,000 Actual 1,000 - 2015 2016 Year
Source of data: Department of Agrarian Reform Region IV-A
Chapter 8: SOCIAL DEVELOPMENT 69
The land distribution process remains to be a hindrance in the achievement of targets. The process of land distribution goes through four milestones, specifically: 1) claim preparation and documentation; 2) survey; 3) valuation; and 4) Emancipation Patents and Certificate of Land Ownership distribution.
Challenges and Prospects
Poor maternal and child health continue to be major development challenges of the Region. Meeting the targets calls for more effective and innovative ways such that quality, reliable and affordable health services are readily available for vulnerable populations and in remote or isolated areas. There is also a need to identify mechanisms and strategies to improve national, subnational, and local program implementation to maximize the increased budget for health. The prevalence of under-nutrition, over-nutrition and HIV cases also needs to be addressed before it worsens.
There are several prospects for improvement of health and nutrition status in the Region which include increasing national health budget, intensive hiring and training of health manpower, local government initiatives on first 1000 days program, implementation of Executive Order (EO) No. 12 on Zero Unmet Needs for Family Planning, implementation of the PPAN 2017-2022, active involvement of the private sector in addressing development gaps, and established coordination between LGUs and government agencies.
To ensure that Calabarzon will achieve the sustainable development goals on health and nutrition, the capability of front line officers in the delivery of health and nutrition services needs to be continuously enhanced. There is also a need for sufficient fund allocations by the national and local governments for the implementation of various health and nutrition programs and projects. Since health is a devolved function to local governments, strong political will is crucial in the improvement of health and nutrition services through the formulation of ordinances regarding the implementation, monitoring and evaluation of national and local health programs and projects. Furthermore, proper identification of gender issues on health and nutrition can help in the provision of appropriate interventions towards reducing inequalities.
Despite the negative performance of some of the health and nutrition indicators from 2015 to 2016, Calabarzon is not far from attaining the targets of the sustainable development goals (SDGs) numbers 2 and 3 (i.e., maternal mortality, infant mortality, under-five mortality, regional health coverage and ending the epidemics of HIV, TB, Malaria and other neglected tropical diseases) since the Region‟s actual accomplishments in 2016 are within the targets set in the SDGs. The challenge therefore is on how to sustain these accomplishments.
Aside from ALS and government subsidies, the declining level of access in basic education highlights the need to guide parents and the importance of livelihood support especially to poor rural families. The Region‟s 40 percent average passing rate in licensure exams for the last three years also point out the need to improve the quality of education through enhancing teaching methodologies, stringent monitoring of educational institutions, and strengthened quality assurance mechanism.
The signing of the Free Higher Education Act will improve access to tertiary education in SUCs. Higher education will also continue to benefit from the CHED K to 12 Transition Program through its institutional grants and scholarships that can result to more accredited
Chapter 8: SOCIAL DEVELOPMENT 70
HEI programs and increase the number of post-graduate graduates in the priority fields of Science, Technology, Engineering, Agriculture and Fisheries, and Mathematics. Furthermore, the growing recognition of industries and academic institutions of the National Certificate (NC), will further boost the demand and graduates of TVET.
In addition to the cash grant, the provision of rice subsidy to 4Ps beneficiaries will help strengthen the delivery of social services in the Region. However, the presence of armed conflict areas remains to be one of the challenges to the implementation of social protection. Other identified challenges are the poor implementation, monitoring and liquidation of projects at the local level.
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C H A P T E R 9 PEACE AND SECURITY
This chapter presents the peace and security situation in Calabarzon Region in 2016 and compares it with the previous years.
Assessment
Calabarzon‟s peace and security situation remained stable in 2016. Insurgency related problems and crime incidents were addressed by the proper authorities. The Armed Forces of the Philippines (AFP) reported a decrease in the number of barangays affected by insurgency and a decline in the capability of rebel groups in terms of manpower and firearms. The incidents of theft, robbery and carnapping decreased contributing to the significant drop of index crime volume in 2016 as reported by the Calabarzon Philippine National Police (PNP). The current administration‟s campaign against criminality and the convergence efforts of all stakeholders to promote peace and security has resulted to a safer environment conducive to growth and development.
Armed Conflict
Calabarzon is still faced by insurgencies. The Region‟s mountains are favorable in concealing rebel group activities. The Quezon-Bicol Zone has rugged terrain and thick vegetated areas which can conceal insurgents during combat operations.
The Southern Luzon Command (SOLCOM) of the AFP is responsible in securing Calabarzon. The Communist Party of the Philippines-New People‟s Army-National Democratic Front (CPP-NPA-NDF or CNN) still is the main threat group.
The SOLCOM reported a decreasing trend in the CPP-NPA-NDF or CNN capability from 2012 to 2016, in terms of manpower, firearms, and affected barangays. This is due to the continuous efforts of the government in addressing insurgency. The SOLCOM‟s operational approaches include: a) sustained military operations; b) support to the peace process; c) support to nation-building; and d) support to law enforcement.
Figure 9.1. CPP-NPA-NDF Capability, Southern Luzon and Bicol Regions, 2012 to 2016 800 700 600 500 MANPOWER 400 FIREARMS 300 AFFECTED BRGYS 200 100 0 2012 2013 2014 2015 2016
Source of data: Southern Luzon Command Chapter 9: PEACE AND SECURITY 73
All provinces of the Region were declared as Conflict Manageable and Ready for Further Development. This was achieved through full collaboration and cooperation of LGUs and law enforcement and security agencies. Quezon province was declared as such on 8 September 2016 through a memorandum of undertaking signed by the Provincial Government of Quezon, AFP and PNP. This is a major accomplishment that would promote peace and development in Quezon which has long been troubled by insurgencies.
Likewise, the number of violent incidents from 2012 to 2016 generally decreased. The mutually agreed ceasefires by the government and rebel groups contributed to the decline in rebel group activities. The government and the communist rebel groups agreed indefinite ceasefires in August 2016. There were 34 rebel group activities recorded in Luzon area prior to ceasefire which decreased to four during the implementation of nationwide ceasefire.
Figure 9.2. Number of Violent Incidents, Southern Luzon and Bicol Regions, 2012 to 2016 140
120 85 100 79 76 80 74 47 BRPC 60 STRPC
40 35 37 20 19 15 14 0 2012 2013 2014 2015 2016
Source: Southern Luzon Command
The identified factors contributing to the existence of insurgency are issues in agrarian reform, land conversion, ancestral domain, and coco levy. The insurgents capitalize on poor infrastructures in rural areas, persistence of illiteracy in the countryside, incidences of injustice, and absence or poor delivery of government basic services to advance their gains.
Vast agricultural lands in Quezon-Bicol Zone are still owned by landlords. This is being exploited by rebel groups to gain support from local farmers. Insurgents grab agricultural land from land owners and give it to its tenants, through this, “Utang na Loob” system is established between insurgents and locals in the area. The Region showed progress on Comprehensive Agrarian Reform Program (CARP) but was not able to meet its target on land distribution with 88 percent already distributed to agrarian reform beneficiaries as of 2015. Institutional barriers were identified as the main obstacle to the timely distribution of land.
Conflict affected areas in the Region are contiguous municipalities at the southern tip of Quezon province which have poverty incidence greater than 20 percent. Delivery of government services in conflict affected areas is not enough due to poor road network
Chapter 9: PEACE AND SECURITY 74 conditions and security issues. Bureaucratic related issues also hamper the effective delivery of basic social services. Procurement issues such as lack of LGU counterpart fund is one of the challenges encountered by DSWD in providing access to improved safe water supply to more households.
Internal Stability
Crime volume increased from 2012 to 2016. A significant increase could be seen from 19,894 in 2012 to 35,878 in 2013 when traffic related incidents were included in crime volume statistics in 2013.
Figure 9.3. Calabarzon Total Crime Volume, 2012 to 2016
Total Crime Volume
CY 2012 CY 2013 CY 2014 CY 2015 CY 2016
48,558 46,848 44,625
35,878
19,894
Source: Philippine National Police
Theft, robbery and carnapping decreased from 2013 to 2016. Index crimes decreased from 15,074 in 2015 to 12,920 in 2016. Non-index crimes increased in the same period as PNP intensified their anti-crime operations and launched their campaign against illegal drugs. However, murder increased in the same period from 1,445 in 2015 to 1,533 in 2016 due to incidents related to illegal drugs.
On crimes against persons the Region recorded an average of 6,394 incidents per year from 2014 to 2016. On prevalent crimes, physical injuries recorded the highest with 10,045 or 23 percent of the total index crime in 2014 to 2016. On crimes against property, there were 7,226 robberies and 12,648 thefts or 28.94 percent of the total index crime, respectively.
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Table 9.1. Calabarzon Total Crime Volume, 2012-2016 Types of Crime CY 2014 CY 2015 CY 2016 Total Crime Against Person 6,589 6,612 5,981 19,182 Murder 1,415 1,445 1,533 4,393 Homicide 241 283 232 756 Physical Injury 3,543 3,490 3,012 10,045 Rape 1,390 1,394 1,204 3,988 Crimes Against Property 9,116 8,462 6,939 24,517 Robbery 2,778 2,518 1,930 7,226 Theft 4,493 4,298 3,857 12,648 Carnapping 1,824 1,619 1,152 4,595 Cattle Rustling 21 27 0 48 Index Crime Volume 15,705 15,074 12,920 43,699 Violation of Special Laws 12,109 13,279 14,040 39,428 Traffic Incidents 12,250 13,741 16,084 42,075 Other Non-Index Crimes 4,561 4,754 4,474 13,789 Non-Index Crimes 28,920 31,774 35,638 96,332 Total Crime Volume 44,625 46,848 48,558 140,031 Source: Philippine National Police
Cavite province had the highest index crime volume from 2012 to 2016 followed by the province of Laguna. In 2016 there was a drop on index crime in all the provinces of the Region. Most of the crime statistics were recorded from city police stations of the Region.
Figure 9.4. Calabarzon Index Crime Volume, 2012-2016 INDEX CRIME 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Batangas Cavite Laguna Quezon Rizal 2012 2013 2014 2015 2016
Source: Philippine National Police
The Region‟s crime clearance efficiency rose to 67.38 percent in 2016 and there is an upward trend in crime solution efficiency since 2013.
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Figure 9.5. Calabarzon Crime Clearance Efficiency and Crime Solution Efficiency, 2012-2016 80.00% 67.38% 70.00% 66.22%
60.00% 54.34% 55.77% 50.26% 48.01% 50.00% 44.47% 39.94% 40.00% 34.15% CCE 31.37% CSE 30.00%
20.00%
10.00%
0.00% CY 2012 CY 2013 CY 2014 CY 2015 CY 2016
Source: Philippine National Police
Drugs Infiltration
The current administration‟s campaign against illegal drugs aims to create a safe environment for the people. PDEA Region IV-A certified six towns in Calabarzon as being “drug- cleared” as of November 2016. These are: San Luis in Batangas; Luisiana, Cavinti, and Magdalena in Laguna; and Plaridel and Pitogo in Quezon. This certification means that municipalities have complied with the requirements of the Dangerous Drugs Board Regulations No. 2 Series of 2007 on the parameters for declaring Drug-cleared barangays including the revitalization and activation of the Barangay Action Plan and Barangay Anti- Drug Abuse Council.
PDEA Region IV-A also arrested 237 drug-personalities in 2016 exceeding its target of 156. There were 169 high value targets which exceeded its target of 81. These were accomplished despite the challenge of lack of funds and limited personnel.
Despite the accomplishments against illegal drugs, there were issues on lack of rehabilitation centers, different approaches and understanding on community-based rehabilitation and lack of coordination among concerned agencies.
To address these issues, the Calabarzon Regional Development Council created the Regional Taskforce on Drug Rehabilitation and the Technical Working Group (TWG) on Anti-Illegal Drug Campaign. The Taskforce formulated a convergence mechanism to be used by the regional agencies and the local government units. On the other hand, the TWG, chaired by PDEA Region IV-A and composed of various agencies, formulated an action plan that will minimize drug related influences in barangays, promote drug-free workplace in government and private establishments and restrict movement of illegal drugs among provinces and adjacent regions. The TWG on Anti-Illegal Drugs Campaign was reorganized into an oversight committee on drugs to be consistent with Executive Order No. 15, series of 2017.
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DILG Region IV-A also launched on November 10, 2016 the Mamamayang Ayaw Sa Anomalya, Mamamayang Ayaw sa Ilegal na Droga or the MASA MASID, a barangay-based anti-criminality, anti-corruption, and anti-illegal drugs program which encourages multi- sectoral partnership to intensify the spirit of volunteerism at the community level. The barangays and law enforcement agencies pledged their support to reactivate the BADAC and promote close linkages among each other.
Challenges and Prospects
The peace and security situation in the Region is seen to continually improve in the coming years. The current administration‟s tough stance against criminality in addition to its support to the peace process has created a more productive business climate and an environment conducive to development and progress.
The civilian and military officials in the region are closely working together to support the national government in attaining just and lasting peace and accelerating development. It will continue to pursue peace agreements with the CPP/NPA/NDF and other rebel groups and address root causes of insecurity by protecting and developing areas affected by conflict. Some of the strategies identified to address root causes of insecurity are as follows:
Fast track land distribution through CARP Enhance delivery of basic services by involving stakeholders from public and private sector through PAyapa at MAsaganang PamanayaNAn (PAMANA). The PAMANA is a program for peacebuilding offered to conflict-affected areas to improve the quality of life in these areas Construct farm to market roads, bridges, and infrastructures connecting adjacent regions to enhance economic activity in conflict-affected areas Mainstream peace and public safety education and building a constituency supportive of the peace process with the Communists Collaboration of efforts between the civilian and military Convergence of efforts in accelerating development.
To support law enforcement, recruitment of police officers will be intensified and collaborations among stakeholders in the war against illegal drugs will be further strengthened. Calabarzon will also take advantage of current technologies such as installation of closed-circuit televisions to curb crime and aid in crime investigations.
The Region already started adopting measures to strengthen its cyber security. Hostile groups use social media to spread their propaganda. Hacking and similar activities also pose as threat to data and information in the internet. Technology and safety procedures among others will be implemented to block and prevent cyber security threats.
The Region will also address the issue on jail congestion and incorporate programs to rehabilitate convicts and prevent repeat offenders. The Yakap Bayan for drug surrenders is recommended for implementation in all provinces in Calabarzon. Moreover, recognizing the value of human rights, it will be integrated into law enforcement such as by sustaining human rights officer in law enforcement agencies.
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C H A P T E R 1 0 CONSERVATION, PROTEC T I O N A N D REHABILITATION OF TH E ENVIRONMENT AND NATU R A L RESOURCES
This chapter discusses the elements of the environment in the region, such as forest, land and water bodies. The prospects of environment and natural resources in the region are discussed at the end of the chapter.
Assessment
Forest Cover
Calabarzon forest cover has increased by 95,406 hectares or 26.13 percent from 269,656 hectares in 2012 to 365,062 hectares in 2016 through the National Greening Program7. The Region had rehabilitated and reforested 21,130 hectares forest land area in 2016 due to the provision of timely adequate financial and human resources support. A total of 25,359,557 seedlings have been planted in the NGP areas with expected 85 percent survival rate.
Table 10.1. Management of Forest Resources and Protected Areas in Calabarzon, 2012-2016 Indicators 2012 2013 2014 2015 2016 Open and denuded forest land area 10,700 29,087 23,180 22,009 21,130 reforested reduced (ha) Forestland with forest cover increased (ha) 269,656 298,743 321,923 343,932 365,062 Timber poaching hotspots 6 6 0 0 0 Mangrove area rehabilitated (ha) - 1,000 823 2,741 420 Number of coastal area with - 11 14 62 58 biodiversity conserved Terrestrial Protected Areas (PAs) 100% 100% 100% 100% 100% Marine PAs (LGU designated) 4% 2% 2% 2% 4% Percentage of critical habitats - 0 0 36% 42% effectively and equitably managed by LGUs Area of degraded coral reefs in - 2,724 2,724 8,000 2,724 NIPAs marine PA rehabilitated
(ha) Percentage of classified caves - - 43% 36% 42% effectively managed by LGUs
7 EO 26 known as “National Greening Program” by former President Benigno Aquino was ended in 2016 that seeks to reforest 102,560 hectares of open, denuded and unproductive forestlands in development of new plantations and sustainable management of established plantations, as well as protection of existing forest plantations. Hence, by virtue of EO 193 and DENR Administrative Order No. 2016-20, the coverage of NGP expanded to cover the remaining unproductive open and denuded forestlands, extending up to 2028.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 79 AND NATURAL RESOURCES
The Province of Quezon has planted the highest number with 17,876,830 seedlings in 16,356 hectares while the Province of Cavite has only planted 883,000 seedlings in 590 hectares as it has the least available plantable open and denuded areas.
The total mangrove area rehabilitated significantly decreased from 2,741 hectares in 2015 to 420 hectares in 2016 due to lack of plantable area. The Region has achieved 132.34 percent of its target reforested mangrove area of 3,766 hectares in 2016.
A total of 116,586 hectares have been reforested which is 113.67 percent of the targeted 102,560 hectares to be reforested by the end of 2016 as more participants from the NGOs, LGUs and CSOs were encouraged to participate in the NGP. Although forest cover has been increasing in the past years, ensuring the growth and survival of planted seedlings remains to be a challenge.
The Region maintained 100 percent of its terrestrial protected areas while the marine protected areas increased by 2 percent in 2015. Although, the 12 percent target of marine protected areas was not achieved, partnerships among the stakeholders implementing coastal management activities such as the DENR, DA, NCIP and LGUs were established. The LGUs also recognized their role in environment and natural resources management through formulation of local policies and provision of budget for projects that will support effective management of coastal and marine protected areas.
Land Tenure
In 2016, 1,532 beneficiaries were given land titles in public alienable and disposal agricultural lands while 2,969 beneficiaries were given land titles in residential areas. The number of beneficiaries has been decreasing from 2012 to 2016 as the Region nears the completion of distribution by 2015. Achievement of the target was made possible with the harmonization of land administration, distribution and management related policies. Adequate financial and institutional support were also provided particularly in development of Sustainable Land Management projects within land degradation hotspots.
Table 10.2. Secured Land Tenure in Agricultural A&D and Residential Lands, 2012-2016 2012 2013 2014 2015 2016 Indicators Baseline Target Target Actual Target Actual Target Actual Number of beneficiaries with secured land tenure in 6,906 6,389 5,683 5,812 3,980 5,803 1,500 1,532 public agricultural A&D lands completed by 2015 Number of beneficiaries with 6,257 2,747 3,909 3,980 2,883 secured land tenure in 3,911 4,097 2,969 residential lands zoned as residential areas Source: Department of Environment and Natural Resources Region IV-A
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 80 AND NATURAL RESOURCES
Disaster Risk Reduction Management
In December 2016, Typhoon Nina with an international name Nock-Ten, entered the Philippine Area of Responsibility and made landfall over the Philippines eight times of which four is in Calabarzon specifically in San Andres, Quezon, Verde Island, Batangas, Tingloy, Batangas and Calatagan, Batangas. A total of 202,847 people in seven cities and 69 municipalities were affected with 4 dead, 4 injured and 18 missing recorded casualties. The total damages and losses were estimated at PhP 1.287 billion with 62 percent in the Province of Quezon and 37 percent in the Province of Batangas. Damages and losses are mainly on infrastructure facilities and agricultural and livelihood activities amounting to PhP 681 million and PhP 606 million, respectively.
The Rehabilitation and Recovery Plan for Typhoon Nina was endorsed to the NDRRMC and agency central offices for funding on 07 March 2017. The estimated total investment requirement is PhP 2.572 billion for rehabilitation and recovery. About 45 percent or PhP 1.176 billion will be used to improve DRR-CCA resiliency of damaged public infrastructure and utilities while PhP 961 million will be used in the provision of seedlings, farm equipment, fingerlings, boats, and emergency employment, among others, PhP 302 million will be for housing rehabilitation and PhP 133 million will be for provision of social services.
As the Region is vulnerable to geological and hydro meteorological hazards, capacity building for LGUs, RLAs and other stakeholders were conducted specifically on contingency plan formulation, incident command system ladderized courses, collapsed structure search and rescue training and community based DRRM including PWDs, media practitioners, and private sector. A quarterly earthquake drill was also conducted to minimize future damages and losses and establish disaster preparedness.
Waste Management
The Region consistently decreased the volume of garbage disposed in landfills from 2012- 2016. In Table 10.4, the solid waste diversion rate increased to 60 percent in 2016 from the diversion rate of 33 percent in 2012. Moreover, the number of LGUs compliance to RA 9003 “Ecological Solid Waste Management Act” consistently increased from 2012 to 2016. Out of 142 LGUs, 92.96 percent LGUs have a 10-year Solid Waste Management (SWM) Plan. The LGUs were able to prioritize strategies that will help reduce waste and improve solid waste management by strictly implementing the RA 9003.
Although the number of LGUs with SWM Plans increased from 28 LGUs in 2015 to 132 LGUs in 2016, only 51 LGUs have approved SWM Plan as Waste Analysis and Characterization Study should be finished prior to SWM Plan formulation.
In terms of closure and rehabilitation of open dumpsites/controlled dump facilities, the Region still has 8 open dumpsites (OD) including controlled disposal facilities (CDF) and 23 sanitary landfills in 2016. Though, the Region‟s only target is to close and rehabilitate 5 open dumpsites/controlled dump facilities per year, a decreasing trend from 2015 to 2016 of monitored OD and CDF signifies improvement and closeness to the goal of the Region to close all ODs and CDFs by 2022. However, achievement of this goal still depends on the implementation of the concerned LGUs.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 81 AND NATURAL RESOURCES
Furthermore, increased in the MRF being monitored signifies achievement of continues reduction of waste in the Region of which the DENR-EMB monitored 54 MRF in 2016 from 30 MRF in 2013. Increase in MRFs is important as it is where recyclables and other items that have resale potential are delivered and sorted, ready for conversion into new products. MRFs lessen the amount of garbage being brought to landfills.
Despite the improvement in waste reduction, reduction of household wastes is a major challenge due to fast urbanization, increasing population and insufficient implementation of wastes segregation.
Table 10.3. Solid Waste Management in Calabarzon, 2012-2016 Indicators 2012 2013 2014 2015 2016
Reduced volume of garbage disposed in decreasing decreasing decreasing decreasing decreasing landfills
Waste generation reduced decreasing decreasing decreasing decreasing decreasing
Solid Waste Diversion 33% 40% 43% 50% 60% Rate Number of LGUs increasing increasing increasing increasing 23 compliance to RA 9003 132 LGUs Solid Waste Management submitted but 1 2 6 28 Plan only 51 were approved Closure and rehabilitation of open 5 5 5 32 15 dumpsites/controlled dump facilities LGUs with approved 10- 1 2 6 28 132 year SWM Plan Monitoring of Materials Recovery Facilities - 59 64 - 54 (MRF) increased Open Dumpsite (OD) 38 39 41 monitored Controlled Dump 46* 8* Facilities (CDF) 45 49 43 monitored SLF Monitored 16 16 19 20 23 Monitoring of MRF - 43 increasing increasing 46 composting increased Source: DENR-EMB Region IV-A *includes OD and CDF
On hazardous waste monitoring, the Region has exceeded its target of monitored industries under chemical control order, generators and transporters of hazardous waste, treatment storage disposal facilities and healthcare wastes generators in 2016. This reflects that
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 82 AND NATURAL RESOURCES industry wastes are regulated in the Region as implementing agencies intensify monitoring of industries.
Table 10.4. Hazardous Waste Management Monitoring in Calabarzon, 2015-2016 2015 2016 Indicators Target Actual Target Actual Industries monitored under chemicals control order (CCO) for mercury, cyanide, asbestos, 10 10 10 212 PCBs, lead Generators with hazardous waste monitored 150 240 200 1,794 Treatment storage disposal (TSD) facilities 30 30 30 44 monitored Transporters of hazardous waste monitored 20 20 20 53 Healthcare waste generators monitored 50 50 50 345 Source: DENR-EMB Region IV-A
Water Bodies
The Calabarzon Region is home to numerous lakes and rivers, including the largest lake in the country. It is also surrounded by bodies of water in the east, west and southern area. Protection and conservation of water resources are monitored to ensure water resources are in acceptable levels to support the production of industries and meet the demand of households in the region.
Laguna de Bay
Laguna de Bay is classified as Class C or fit for aquaculture operators, but not for contact recreation such as swimming (Class B) based on its biochemical oxygen demand (BOD) level. The average BOD of the lake was recorded at 2 mg/L which is within the target of less than 7 mg/L.
As part of the River Rehabilitation Program, 12 clean-up activities were conducted in 2016 for the improvement of the water quality of the Laguna de Bay Basin. Although it decreased from 19 clean-up activities in 2015, the LLDA still exceeded its target to conduct 3 clean-up activities for 2016. A total of 140.52 tons of solid wastes was collected from several clean- ups conducted in partnership with different stakeholders such as LGUs and private sectors. LLDA partnership with the manila Water and Laguna Water in the construction of septage and sewerage treatment facilities also helped to address the water pollution originating from the domestic sources.
While the waterways can be cleared from solid wastes, there is a need to address the root cause of water pollution from domestic sources.
On the other hand, under the Adopt-a-River Program, the targeted five rivers per year was achieved in 2016 as the City of Muntinlupa and the Municipalities of San Pedro, Siniloan, Bay and Los Baños, Laguna signified their intentions through a Memorandum of Agreement to co-manage the water systems. However, sustainability of the project remains as an issue as
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 83 AND NATURAL RESOURCES funding by the partner LGUs and industries which must be regarded since LLDA could only provide technical assistance and monitor the program.
The Region has 36 water quality monitoring stations in the Lake and its tributaries of which 9 are specifically in the lake and 27 are in the tributary rivers.
Table 10.5. Water Quality and Management of Laguna de Bay, 2012-2016 2012 2013 2014 2015 2016 Indicators Baseline Target Target Actual Target Actual Target Actual Sustain average BOD level of Laguna Lake 1.67 2 3 4.67 <7 2 within standard of >7mg/L No. of Monitoring - 636 613 853 664 469 Conducted Number of structures 2 63 114 98 125 65 demolished Area demolished 100 1,302 119 192 750 236.56 increased (ha) Number of river adopted under the 5 0 1 0 5 5 Adopt-a-River Program
Number of Clean-up 5 14 15 19 3 12
Source: DENR-EMB Region IV-A
On the number of structures demolished, a decrease of 60 aqua structures in 2016 reflects decreased hectare / area in the Laguna Lake with illegal fishpen and fishcages. Thus, signifies improvement on the regulation and implementation of government policies.
Taal Lake
The Taal Lake is no longer part of the monitoring of the DENR-EMB Region IV-A effective 2015 as it is already a protected area with its own governing management. It is now under the Taal Volcano Protected Landscape-Protected Area Management Board (TVPL-PAMB). The DENR-EMB Region IV-A is now monitoring the Iyam–Dumacaan River in Lucena City.
Iyam-Dumaan River
The Iyam-Dumaan River is classified as Class C per water quality data collected in 2015 and 2016 which is intended beneficial for fishery water propagation and growth of fish and other aquatic resources and agriculture, irrigation and livestock watering.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 84 AND NATURAL RESOURCES
Table 10.6. Water Quality of Iyam-Dumacaan River, 2015-2016 Total Fecal Year BOD Chlorides DO pH Phosphate TSS Coliform Coliform 2015 6.00 - 6.93 7.03 0.43 12.58 124959.01 59994.92 2016 18.72 606.25 4.98 7.84 0.53 18.54 485241.18 171376.88 DENR 5,000 Class C Min. 5 200 <7mg/L 350 6.5-9.0 0.05 mg/L 80mg/L MPN/100 water mg/L MPN/10mL mL criteria Source: DENR-EMB Region IV-A
For 2015 and 2016, the DENR-EMB conducted water quality sampling only in which in Table 10.7, its water quality deteriorated in 2016 as its BOD increased to 18.72 mg/L from 6.00 mg/L in 2015 which exceeds the standard for Class C water of <7mg/L.
Rivers and Watershed
The water quality of major rivers in the Region improved in 2016 in terms of BOD levels (Table 10.8) as a result of extensive conduct of information education campaign, multi- sectoral clean-up activities, adapt-an-estero program, regular monitoring of industries and operationalization of LGUs Water Quality Management Area (WQMA)8. All these resulted to increased awareness and participation in protecting the environment.
Table 10.7. Water Quality of Priority Rivers with BOD Level Not Within the Water Criteria in Calabarzon, 2015-2016 2015 2016 Indicators Target Actual Target Actual
Imus River (8 sampling stations) 9.29 11.98 8.82 7.125 Ylang-Ylang River (5 sampling 92.08 119.31 87.48 117.3 stations) 5% BOD 5% BOD Rio Grande (5 sampling stations) 7.436 5.5 reduced reduced Cañas River (6 sampling stations 5% BOD 5% BOD 6.214 3.16 reduced reduced Source: DENR-EMB Region IV-A
The Calabarzon Environmental Summit in June 2016 showcased LGUs breakthroughs and innovations in environmental protection and it is a testimony to the Region‟s efforts on solid wastes, water and air quality management. Recognizing the efforts of the LGUs and industries in implementing good practices in solid waste management and environmental protection provides motivation to raise environmental consciousness and solicit support and participation among the stakeholders.
8 Water Quality Management Area (WQMA) aims to rehabilitate, protect and preserve the water quality of the rivers to sustain their economic and public health benefits through stakeholder collaboration.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 85 AND NATURAL RESOURCES
Table 10.8. Water Quality of Bathing Beaches in Calabarzon, 2013-2016 Variance 2013 2014 2015 2016 2013 & 2016 Indicators Fecal Total Fecal Total Fecal Total Total Coliform Fecal Coliform Total Coliform Fecal Coliform Coliform Coliform Coliform Coliform Coliform Coliform Cavite
Bacoor Beach 26,113 15,493 50,638 28,851 112,446 57,259 16,971 7,251 9,142 8,242
Lido Beach 3,242 1,212 2,696 1,382 2,090 1,362 4,549 1,184 -1,307 28
Villamar Beach 5,672 1,326 1,183 500 1,908 903 5,125 697 547 629
San Isidro 18,017 4,030 14,304 6,240 58,348 37,354 56,897 15,854 -38,880 -11,824 Celebrity 13,911 4,144 27,780 14,670 83,766 67,528 46,749 27,425 -32,838 -23,281
Garden Coast 1,112 408 3,086 1,426 1,616 1,038 2,895 871 -1,783 -463
Costa Eugenia 3,491 1,226 3,800 1,224 2,336 1,611 7,164 3,667 -3,673 -2,442
Villa Criselda 2,238 1,269 2,113 597 2,988 1,715 5,800 3,938 -3,562 -2,669
Antonio‟s 843 389 503 307 312 193 887 583 -44 -194 Hideaway
Daloroy‟s Beach 381 156 789 233 210 111 505 176 -124 -20 Resort Batangas Laiya Beach
Laiya Coco 1,701 921 400 152 158 32 43 15 1,658 906
Grove Beach 86
Variance 2013 2014 2015 2016 2013 & 2016 Indicators Fecal Total Fecal Total Fecal Total Total Coliform Fecal Coliform Total Coliform Fecal Coliform Coliform Coliform Coliform Coliform Coliform Coliform
Kabayan Beach 19,256 11,546 730 152 346 53 76 32 19,180 11,514 Resort
Eastern Beach 2,682 1,427 1,496 501 20 5 59 24 2,622 1,403 Resort
Virgin Beach 371 293 207 38 19 5 32 8 339 285 Resort
Blue Coral Beach Resort 1,822 543 614 437 83 37 58 20 1,763 523
La Luz Beach 261 165 478 310 85 21 74 28 186 137 Resort
Lemery Beach Labrisa 18,550 5,150 10,906 2,863 255 74 529 221 18,021 4,929 Leonor 3,674 920 16,176 8,696 387 80 630 207 3,043 713 CLM 7,638 3,738 17,800 2,108 112 30 332 157 7,305 3,580 Nasugbu Beach
Bucana 35,630 28,930 36,150 27,990 1,691 1,058 1,476 536 34,154 28,394 Johndell Beach 22,006 12,518 27,304 21,054 1,367 220 2,455 866 19,551 11,652 Vito Suns 45,753 16,050 22,342 13,032 1,225 369 6,526 3,226 39,227 12,824 Source: DENR-EMB Region IV-A
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However, maintenance of the water quality of the Priority Rivers are still at risk due to solid waste from informal settlers and other establishments such as backyard piggeries. Informal settlements, without proper septage tanks or sewage system are the main sources of pollution of rivers. Resettlement plans by the LGUs, supported by adequate financing and strict implementation is crucial to move settlements away from the river side to reduce pollution and clear the river systems from domestic waste.
In terms of Maintenance of water quality of bathing beaches in Calabarzon particularly in the Provinces of Cavite and Batangas, the DENR-EMB follows the DAO No. 34 (Class SB) standards of which the Total Coliform should be at 1000 MPN/100mL while the Fecal Coliform should be at 200 MPN/100mL.
Though, the water quality of the bathing beaches in Calabarzon failed to meet the Class SB standards, the water qualities of most bathing beaches especially in the Province of Batangas improved in 2016 compared from 2013 due to continuous coordination of EMB to the resort owners. With this, the resort owners made their own initiatives to improve the water quality of the beaches.
Air Quality
Air pollution comes from methane emitted from open dumpsites, exhaust gas from vehicles and waste from industries.
In order to improve air quality, the 2,185 industries with potential to pollute the air were monitored in 2016.
Table 10.9. Air Quality With Potential to Pollute Air in Calabarzon, 2015-2016 Baseline 2015 2016 Indicators Year Value Target Actual Target Actual Industries monitored 2012 900 1,300 1,336 1,400 2,185 increased Number of private emission 2012 38 38 49 38 60 testing centers monitored Inventory conducted on 2012 1 1 1 1 1 greenhouse gases (GHG) emission sources Source: DENR-EMB Region IV-A
Challenges and Prospects
The major environmental issues facing the region are ensuring the growth and survival of planted seedlings, reduction of wastes, particularly on domestic or household wastes, maintenance of water quality within standards and disaster risk reduction. Strategic interventions are identified to address each of the challenges.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 88 AND NATURAL RESOURCES
Challenge on Ensuring the Growth and Survival of Planted Seedlings
Sustainability of active participation of partners and maintaining at least 85 percent survival rate of planted seedlings should be monitored by expanding and strengthening the partnerships with the NGAs, LGUs, SUCs, and CSOs through convergence approach and adoption of ridge to reef approach.
Challenge on Reduction of Wastes
Though the industry wastes are regulated, the Region has difficulty in the reduction of household wastes. Thus, could be mitigated through: intensifying IEC and coordination to LGU encouraging LGUs to strictly enforce local ordinances on wastes segregation achieve 100% SWM Plan Approval by and implementation by the LGUs through: o coordinating with PGENRO and conduct of trainings on Wastes Analysis and Characterization Study o provision of assistance on preparation of 10 Year SWM Plan have additional sanitary landfills and MRFs promote waste to energy project as an alternative technology
Challenge on Maintenance of Water Quality Within Standards
Maintenance of water quality within the Class Standards remains an immense challenge to the Region as it affects the health of the people and their livelihood. The strategies are: resolve massive fish kills in Laguna Lake due to insufficiency in oxygen which is the effect of overcrowding and decreasing bathymetry of the lake by: o dredging the lake to increase its depth o delineation of fishpen to a strategic location o reduction of fishpen areas to avoid overcrowding and enable poor fisherfolk to utilize open spaces of the lake for their livelihood sustain efforts in the implementation programs such as clean-up activities and adopt- a-river program strengthen IEC to develop environmental awareness culture and discipline sustain strict implementation of WQMA action plans penalize non-compliance of industries
Challenge on Disaster Risk Reduction
Disaster risk reduction should have zero casualty target by institutionalizing DRRMOs in all municipalities and cities, strengthening close coordination with LCEs to encourage them to include DRRM in their priorities, conduct capacity building for LCEs, hiring of personnel in DRRMOs, training and provision of equipment.
Chapter 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT 89 AND NATURAL RESOURCES
Credits
BatStateU Batangas State University BFAR Bureau of Fisheries and Aquatic Resources BLGF Bureau of Local Government and Finance BJMP Bureau of Jail Management and Penology BSP Bangko Sentral ng Pilipinas CDA Cooperative Development Authority CHED Commission on Higher Education COA Commission on Audit CSC Civil Service Commission CvSU Cavite State University DA Department of Agriculture DAR Department of Agrarian Reform DBM Department of Budget and Management DBP Development Bank of the Philippines DENR Department of Environment and Natural Resources DENR-EMB Environment Management Bureau DepEd Department of Education DILG Department of Interior and Local Government DOE Department of Energy DOH Department of Health DOH-CHD Center for Health Development DOJ-PPA Department of Justice – Parole and Probation Administration DOLE Department of Labor and Employment DOST Department of Science and Technology DOT Department of Tourism DPWH Department of Public Works and Highways DSWD Department of Social Welfare and Development
2016 Regional Development Report 90
DTI Department of Trade and Industry IBPAP IT and Business Process Association of the Philippines LBP Landbank of the Philippines LLDA Laguna Lake Development Authority LSPU Laguna State Polytechnic University LWUA Local Water Utilities Administration NEDA National Economic and Development Authority NIA National Irrigation Administration NWRB National Water Resource Board OCD Office of Civil Defense OPAPP Office of the Presidential Adviser on the Peace Process OWWA Overseas Workers Welfare Administration PCA Philippine Coconut Authority PDEA Philippine Drug Enforcement Agency PEZA Philippine Economic Zone Authority PNP Philippine National Police PPA Philippine Ports Authority (Batangas and Marquez) PSA Philippine Statistics Authority SLSU Southern Luzon State University TESDA Technical Education and Skills Development Authority URS University of Rizal System
2016 Regional Development Report 91
Writers
In Pursuit of Inclusive Growth Theresa Jane G. Cajarte
Macroeconomy Aprille M. Suyat
Competitive Industry and Services Sectors Jennylyn P. Jucutan Elisa I. Pandela
Competitive and Sustainable Agriculture and Revy Ann Grace Z. Jolongbayan Fisheries Sector Nelson J. Aman, Jr.
Accelerating Infrastructure Development Engr. Josephine D. Hapil Richard P. Engasa Ray Michael Kevin H. Abuso Haze Berlene P. Puno
Towards a Resilient and Inclusive Financial System Luningning D. Llames Armina O. Espiritu
Good Governance and the Rule of Law Alvin Caezar V. Olanday Benjamin Jose G. Bautista
Social Development Donna Riza P. Ronquillo Jamie Angeli A. Gutierrez Angela R. Llamas
Peace and Security Marlon T. Natividad
Conservation, Protection and Rehabilitation of the Laurece Francia R. Tanyag Environment and Natural Resources Engr. Alan T. Del Socorro
SECTOR COORDINATORS Donald James D. Gawe Marcelo Cesar R. Palacio Agnes D. Daantos
EDITORS Engr. Josephine D. Hapil Jennylyn P. Jucutan
ADMINISTRATIVE SUPPORT Arlita E. Lopez Marilyn G. Cantor Fria Shiela M. Bugarin
OVERALL COORDINATOR Valter L. Morada
MANAGEMENT RD Luis G. Banua ARD Gina T. Gacusan
2016 Regional Development Report 92
NEDA Regional Office IV-A (CALABARZON) 2560 4/F Marcelita Building, Barangay Real Calamba City, Laguna (049) 545-7756/(049) 576-0148 [email protected] http://calabarzon.neda.gov.ph/