REPORT ON THE PRIVATE SECTOR LEARNING ACTIVITY
Strengthening Urban Resilience for Growth with Equity (SURGE) Project
CONTRACT NO. AID-492-H-15-00001
SEPTEMBER 29, 2016
This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of the International City/County Management Association and do not necessarily reflect the views of USAID or the United States Government.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Documentation Report on Private Sector Learning Activity, September 2016
REPORT ON THE PRIVATE SECTOR LEARNING ACTIVITY
Strengthening Urban Resilience for Growth with Equity (SURGE) Project
CONTRACT NO. AID-492-H-15-00001
Program Title: USAID/SURGE Sponsoring USAID Office: USAID/Philippines Contract Number: AID-492-H-15-00001 Contractor: International City/County Management Association (ICMA) Date of Publication: September 29, 2016
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Documentation Report on Private Sector Learning Activity, September 2016 Contents
I. Introduction 4
II. Design of the Forum 5
III. Participants 5
IV. Implications on the Project 5
V. Next Steps 7
Tables
Table 1. Batangas City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 25 Table 2. Batangas City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 26 Table 3. Puerto Princesa City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 27 Table 4. Puerto Princesa City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 28 Table 5. Iloilo City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 31 Table 6. Iloilo City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 32 Table 7. Tagbilaran City Output of Workshop 1: Business Attraction and Expansion –Opportunities and Challenges 33 Table 8. Tagbilaran City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 33 Table 9. Cagayan de Oro City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 36 Table 10. Cagayan de Oro City Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 36 Table 11. Zamboanga City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges 37 Table 12. Zamboanga City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities 37
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Documentation Report on Private Sector Learning Activity, September 2016 Annexes
Annex 1. Highlights/ Proceedings 8 Annex 2. Output of Workshops 1 and 2 25 Annex 3. Program 39 Annex 4. List of Participants 42 Annex 5. Photo Documentation 44 Annex 6. Visual Aids/ Presentation 45 Annex 7. Summary of Evaluation/ Feedback 45
Acronyms
BOT Build-Operate-Transfer FDI Foreign Direct Investment CLUP Comprehensive Land Use Plan GDP Gross Domestic Product IPC Investment Promotion Center LEIPO Local Economic and Investment Promotion Office LGU Local Government Unit M&E Monitoring and Evaluation MSME Micro, Small and Medium Enterprise NCC National Competitiveness Council NGO Non-Government Organization PPP Public-Private Partnerships TESDA Technical Education and Skills Development Authority USAID United States Agency for International Development
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iii Documentation Report on Private Sector Learning Activity, September 2016 I. Introduction
The Strengthening Urban Resilience for Growth with Equity (SURGE) Project of the USAID aims to foster the development of conditions for broad-based, inclusive, and resilient economic growth for a critical mass of cities and surrounding areas outside of Metro Manila, Cebu, and Davao.
The objective of the program is to enable second‐tier cities to become economically thriving and resilient growth centers. As engines of growth, these cities will provide a better quality of life for residents and people in surrounding areas. By the end of SURGE, activities are expected to have contributed to higher levels of investment and employment for both the second‐tier cities and adjacent rural areas.
The Philippine economy posted solid growth in 2015. This growth is projected to pick up with higher investment and consumption. Sustaining strong growth will require policy continuity to develop infrastructure and human capital, improve the investment climate, and reform governance.
The private sector is an essential pillar for pushing and sustaining economic development: some 90% of all economic activity is created by the private sector, as are nine out of every ten jobs. However, businesses face many barriers that impede investment, business expansion, job creation and sustainable growth.
The learning activity brought together 25 private sector movers from the six CDI cities to explore ways to spark investments that will grow the economy of cities and surrounding areas. Participants came from various business organizations such as Chambers of Commerce and Industry, Business Clubs and other Business Support Organizations and discussed ways to attract, retain and grow investments with experts. Industry/business leaders conferred on issues and solutions to enable the private sector to contribute to the economic development of their cities and thus, the country.
This activity analyzed the current trends and prospects in economic development, globally and nationally, the essential role of the private sector, as well as the challenges and opportunities for economic growth.
Specifically, the objectives of this activity were:
(1) To discuss trends in global and national economic development; (2) To revisit the role of the private sector in the economic development of the city; (3) To identify issues on competitiveness that impact on the flow and retention of investments in the city and ways to address these; (4) To initiate a discussion on the impact of climate change and strategies to ensure a resilient local economy; and (5) To provide a venue for business support organizations to discuss organizational development issues and develop an Agenda for Action to contribute to a growing local economy.
This report addresses Component 2: Activity 2.4.1.1: Economic Growth Action Plan. It is also in support of Component 4, Activity D.3.2: Holding of Capacity Building Activities/Workshops.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 4 Documentation Report on Private Sector Learning Activity, September 2016
II. Design of the Forum
The three-day learning activity was held from June 27 to 29, 2016 at the Iloilo Convention Center. It had the following parts:
Part 1: Quick visit to Iloilo’s historical landmarks, cultural attractions and business development trends leading to a Welcome Dinner, Introductions/Lightning Talks.
Part 2: Two days of sessions on current trends and prospects on economic development, the essential role of the private sector, and the challenges and opportunities for economic growth.
Part 3: Two short workshops to identify opportunities and challenges for business attraction and expansion, and develop a private sector agenda for economic growth in the cities.
Slide presentations, workshop outputs, and photos have been compiled and are part of the documentation report as attachments.
III. Participants
There were 11 resource persons and 25 participants from the Chambers of Commerce, Business Clubs and other Business Support Organizations. Of the participants, 16 were male and 9 were female.
Overall, the group gave the two-day activity high marks. Participants were very pleased to have listened to a panel of experts. They were also grateful that USAID SURGE initiated this activity which allowed them to collaborate and learn from one another’s good practices. However, participants wanted more time for group discussions and open forum.
IV. Implications on the Project
The Private Sector learning activity highlighted the following issues and their implication to the SURGE Project.
Strengthen local business development and facilitate investments
The key to economic growth is Foreign Direct Investments (FDIs). Foreign investors consider the following criteria for investing: policies of the host country, proactive measures that countries adopt to promote and facilitate investment, and characteristics of their economies. To this end, businesses must define their focus, do capacity building, and promote investments.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 5 Documentation Report on Private Sector Learning Activity, September 2016
SURGE recognizes the private sector as the engine of growth. The Project will work with the private sector to identify the most promising key economic sectors and initiate discussions on the most strategic potential interventions to accelerate trade and investment acquisition in those sectors. The Project will also develop and implement appropriate capacity building interventions for the cities’ LEIPO and investment promotion centers, and provide niche assistance to Chambers, trade associations, and other business support organizations.
Strengthen the business enabling environment
The private sector must get involved and influence the business environment. Businesses need to continuously work with the government to ensure that objectives are complementary. Moreover, businesses must foster entrepreneurship and competitiveness. Business leaders must also learn from each other’s experience and pursue opportunities for inter-city collaboration. The National Competitiveness Council (NCC) has identified the top three indicators for cities to be competitive namely, economic dynamism, government efficiency, and infrastructure. As a result of NCC’s efforts, the LGUs have a primary database to further develop their capacity.
Using the assessment of the business climate in the cities, the CMCI results of the NCC and other studies, SURGE will work with the city government and the private sector to implement an action plan to improve the cities’ competitiveness. This could include advising LGUs on ways to strengthen their business enabling environment and to identify and accelerate investment opportunities including locally based public private partnership opportunities and assisting SURGE cities to create or strengthen One-Stop Shops (OSS) and/ or Investment Promotion Centers (IPC).
Revise infrastructure investment plans to reflect market and climate factors
Changing climate patterns mean that cities must prepare for a climate defined future. The cities must retrofit their infrastructure and draft responsive Comprehensive Land Use Plans (CLUPs) incorporating disaster management. Cities must also look at issues on food security, water production and consumption, and renewable energy.
To this end, SURGE will promote an efficient and effective land administration system in CDI Cities that promotes proper land use planning that takes into account climate change adaptation measures.
Improve local revenue generation
The public-private partnerships (PPPs) are a viable option for local government units (LGUs) to help close the country’s huge infrastructure gap. The PPP Center is available to provide capacity building and expertise to assist the LGUs and businesses.
In facilitating the development of the city’s growth action plan, SURGE will continue to initiate or strengthen continuing dialogue and positive engagement on PPP for infrastructure and other development projects.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 6 Documentation Report on Private Sector Learning Activity, September 2016 V. Next Steps
All of the private sector representatives recognize that they must collaborate with their respective LGUs to come up with programs to pursue inclusive and resilient growth in each of their cities. They also expressed the need to continue collaborating and networking, and learn from the good practices of their fellow CDI Cities. Specific workshop recommendations are as follows:
Tagbilaran, Puerto Princesa, Zamboanga, and Batangas identified the establishment or strengthening of their investment and promotions council/board to support local economic growth. The Puerto Princesa Chamber of Commerce recognized the need to review and update the city investment code and re-organize the city investment board. The Bohol Chamber of Commerce and Industry (BCCI) has proposed a 10-point private sector agenda to the LGU. As part of investment promotion activities, it plans to set up a chamber-managed investment promotion center. Zamboanga is recommending fixed seats for the private sector as members of the Trade Investment Council. The Metro Batangas Business Club hopes to contribute to a focused business investment system by initiating dialogue with the local government on priority investment areas;
Tagbilaran and Iloilo recommended the need to incorporate disaster management and climate change in their respective business plans. The Bohol Chamber of Commerce and Industry proposed to formulate a business continuity plan that will adapt to climate change and disasters, and to build resilient infrastructure that will address sinkholes and other natural geo-hazards. Iloilo is prone to typhoons which impact business attraction and expansion;
The Cagayan de Oro Chamber of Commerce, for its part, proposed to create a unified business group in the city and peri-urban areas to promote synergy and inter-connectivity among the many business groups. It will continue to promote green business through the Oro Best with its 2016 theme, “Spearheading Inclusive Growth for Mindanao”. It will also scale up city competitiveness; and
Iloilo City identified high utility costs as a deterrent to attracting investments. The Iloilo Chamber of Commerce proposed to discuss this matter with the Mayor. The Chamber also identified the need for a baseline PPP study on Panay Electric Company.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 7 Documentation Report on Private Sector Learning Activity, September 2016 Annex 1. Highlights/ Proceedings
Day 1 – June 27, 2016
Day 1 included a study tour where participants had a quick drive through the important development areas in the city such as the Iloilo Business Park, a brownfield development - the area of the old airport which has been converted into a row of restaurants, cafes, and bars, condominium towers, call centers, two 5-star hotels, the iconic Iloilo Convention Center, and other mixed use areas.
The group also visited the old downtown area which has been restored to its old glory and other historical and cultural buildings such as the Molo and Jaro churches, and antique homes such as Balay Camiña. The tour went through university row and Iloilo’s famous Esplanade which is the country’s longest linear park. Participants were then treated to dinner at Tatoy’s Manokan.
Iloilo City Vice Mayor, Atty. Jose Espinosa III delivered the Welcome Remarks on behalf of Mayor Jed Patrick Mabilog. VM Espinosa shared stories on why Iloilo City is called the City of Love. He also shared how Iloilo City is trying to regain its lost glory through recent developments such as the growth of business hubs which are being developed by Ayala Land and Megaworld.
Dr. Stephen Andoseh, the Deputy Office Director of USAID’s Office of Economic Development and Governance, delivered a message on behalf of USAID. He discussed the rationale behind the VM Espinosa shares gathering and the good relationship of the how Iloilo is regaining Philippines and the United States for lost glory through the city’s many projects with almost a century. He also discussed the the country’s major SURGE Project and how it can help spur property developers. growth in the cities.
During dinner, representatives from each city delivered a series of “Lightning Talks” to showcase innovative business practices.
Dr. Andoseh delivers a message on behalf of USAID.
Atty. Bernardo Mayo Batangas City
Atty. Mayo shared how green business is being practiced in their city through energy conservation techniques and innovative engineering practices. He also discussed how they have developed the Metro Batangas Business Council where the private sector can lead and link with other LGUs.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 8 Documentation Report on Private Sector Learning Activity, September 2016 Mr. Ralph Paguio Cagayan de Oro City
Mr. Paguio spoke on how the city pioneered an e-payment system for its residents with the assistance of USAID’s INVEST Project. Bills may now be paid through 7/11 stores and through debit/ credit cards.
Typhoon Sendong left the city in shambles in 2013. The city government, in partnership with the Trade and Investment Promotions Council, started a rehabilitation process focused on disaster preparedness and management. Tree planting also became one of the city’s priority activities to prevent flooding.
Mr. Paguio emphasized that the cities need to work together to achieve their common objectives.
Ms. Donna Ratilla Iloilo City
Ms. Ratilla presented the achievement of the Iloilo Chamber of Commerce and how the organization has helped build a better business environment through network support and partnerships with national government agencies such as the Technical Education and Skills Development Authority (TESDA), the Department of Labor, and the city government.
She shared the chamber’s “big brother, small brother” strategy where established businesses/ businessmen provide coaching to business startups and small scale businesses.
Mr. Arjie Lim Puerto Princesa, Palawan
According to Mr. Lim, the Puerto Princesa Chamber of Commerce was established only two years ago. Notwithstanding this, the chamber has accomplished many things, including having a strong relationship with the city government. It has come up with innovative programs such as the Saturday Night Market which has become a tourist attraction and a business hub for local producers.
Mr. Lim also disclosed developing their Balayong Park in partnership with the city government. “Balayong” is a local tree that resembles the cherry blossoms of Japan.
Mr. Argeo Melisimo Tagbilaran City
Mr. Melisimo focused on how the partnership with the city government and the Chamber of Commerce in Tagbilaran City has improved the tourism industry in Bohol. He talked on how the privatization of the water and electricity company has helped the city. He mentioned that Bohol has the lowest water and electricity rates in the country because of PPP, even as the provincial government still has equity shares in the privatized company.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 9 Documentation Report on Private Sector Learning Activity, September 2016 Mr. Edwin To Zamboanga City
Mr. To shared the achievements of their organization, especially in developing the canning industry. Zamboanga is known for its sardines and tuna canning industries. The city, which has had its share of yearly typhoons, has initiated disaster preparedness and management activities, including efforts to ensure ample food supply. He also added that Zamboanga has a very low electricity cost at P7.00 which has helped attract more investors.
Hon. Lady Julie Grace Baronda Closing Message
Iloilo City Councilor Baronda delivered her message about shared responsibility in relation to city building. She emphasized the crucial role of the business sector in development and urged everyone to collaborate. She concluded by encouraging the participants to learn from one another and apply the learnings to their respective cities.
DAY 2 – June 28, 2016
Session 1: OVERVIEW OF THE SURGE PROJECT
Session Description: This session provided an overview of the SURGE Project and its goals. The session also covered workshop objectives, specifically coming up with detailed activities for the second year work plan.
Session Resource Person:
Mr. John Avila is the economic growth specialist of USAID’s office of economic development and governance.
Highlights:
Mr. John Avila explained why the private sector conference was conceptualized. He said that the private sector must define its role in urban development and how it can attract more trade and investments.
He said that one of the main goals of the Project is to assist second-tier cities to achieve inclusive and resilient growth. Resilient growth means taking stock of the impact of climate change and taking steps to address disaster preparedness. He said that the cities’ growth depends on its peripheral areas and explained why it’s important to reach out to the surrounding municipalities.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 10 Documentation Report on Private Sector Learning Activity, September 2016
He further explained that SURGE adopts a whole of mission approach that will leverage on other USAID complementary projects such as the Be Secure Project on water security. He explained that one of the workshop objectives is to identify detailed activities given that the SURGE Project is on its second year of project implementation.
Mr. Avila highlighted four aspects of the learning activity: to do an environmental assessment; to provide a venue for business support organizations to discuss opportunities and challenges; to develop an agenda for the next four years; and to create a common agenda and contribute USAID’s support to that agenda. USAID’s John Avila discusses the SURGE Project and how it can work He also promoted the International Conference on Urban Development with the private sector better on July 12 and 13, 2016, and asked the participants to think about the in year two. following issues:
How to ensure sustainable delivery of public goods. He said there is a need to take a look at infrastructure planning and public goods which can be as simple as open spaces; How to overcome coordination failures and collective action problems by determining where these problems are, and how to create institutions to address these problems; How to ensure a level playing field for all stakeholders; How to share development risk and financial obligation especially when politicians have a three-year term. He explained the need to promote PPP projects at the LGU level even as financing will take at least 25 years in terms of return on investment (ROI); and How to foster entrepreneurial and innovative development with the private and public sectors.
After Mr. Avila’s remarks, participants asked some questions. Mr. Avila’s response is summarized below. On whether the change in leadership in the Philippines and the US will affect USAID projects, Mr. Avila explained that he does not think that the economic agenda of the new administration will affect current activities. He said that there is a strong buy-in on these projects and there are existing relationships with career government officials. On how the initial six cities were chosen for the project and how this will affect the next batch of cities, Mr. Avila answered that USAID is closely working with the league of cities using a set of criteria. For example, Cagayan de Oro, has the highest growth rate at one point, an excellent airport, and is very close to Bukidnon. In Iloilo, there was momentum and USAID wants to be part of the solution to problems associated with its growth. Batangas was chosen because it is very near Metro Manila and has good connectivity. Zamboanga was chosen because of its strategic role in Mindanao.
SESSION 2: TRENDS IN GLOBAL AND NATIONAL ECONOMIC DEVELOPMENT: IMPLICATIONS ON BUSINESS AND THE PRIVATE SECTOR
Session Description: This session highlighted current trends in the global and national landscape, specifically the recently concluded national elections, and its impact to business.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 11 Documentation Report on Private Sector Learning Activity, September 2016 Session Resource Person:
Mr. Edser Trinidad is the head of equity of Philam Life.
Highlights:
Mr. Trinidad started his presentation by assessing the recently concluded presidential elections. He pointed out the following: There was a high voter turn-out and relatively peaceful elections. The political environment is becoming more mature. The market had a big drop prior to the elections. Mayor Duterte was relatively unknown which led to a sell down in foreign funds. There was a rebound in the equities market following Mr. Trinidad gives an economic briefing the elections. following the recent presidential elections.
He said that the Duterte administration will most likely continue the economic policies set by the previous administration. His initial cabinet appointees are mostly experienced officials and used to work for previous government administrations. The business community also welcomed the consultative conference initiated by the new president.
Mr. Trinidad pointed out that the Gross Domestic Product (GDP) should be a concern for the Duterte administration given that infrastructure spending is only 2% of GDP when most of the Philippines’ neighbors are spending 6 to 7% of their GDP.
As to whether or not the stock market will continue its uptrend, Mr. Trinidad shared that the equities market tends to perform well with every new administration. Analysts continue to be optimistic that the market will move upward, especially if the new president can implement his economic agenda.
Mr. Trinidad further shared that the Philippines remains an expensive country for investors. It is also small compared to other economies in terms of value turn-over and there are few publicly listed companies to choose from.
Several questions were raised on the future of the Philippine economy. Mr. Trinidad’s answers are summarized below:
The Philippines is not yet prepared to compete globally and won’t be ready for the ASEAN economic integration. More than 50% of the Philippines’ population are in the working age bracket. The country must harness and use this to its advantage. Iloilo is a rich city but most of its businessmen are not into stocks and prefer keeping their money in banks. Therefore, there is a need to educate local businessmen on equities investments. On the issue of land reform in Bohol, Mr. Trinidad shared President Duterte’s admission that the Comprehensive Agrarian Reform Program was a failure. After the land was given to the
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 12 Documentation Report on Private Sector Learning Activity, September 2016 farmers, there were no follow up support or educational initiatives to help farmers develop their land.
SESSION 3: TRADE AND INVESTMENT PROMOTION AND FACILITATION
Session Description: This session identified good practices on promoting trade and investment activities in the cities.
Session Resource Person:
Mr. Joel Yu is a former undersecretary of the Department of Trade and Industry.
Highlights:
Mr. Yu started his presentation by sharing the vision of Singapore’s former minister for trade and industry, Mr. George Yeo. He said Mr. Yeo’s vision completely turned around the Singaporean economy in the past two decades.
Citing lessons from the Singapore experience which were applied in Cebu, Mr. Yu reiterated that the key to economic growth is Foreign Direct Investments (FDIs).
Currently, FDIs in Cebu are employing 300,000 Mr. Yu emphasizes the importance of FDIs Cebuanos, earning an average of Php30,000 a month. in spurring economic activity and growth. He pointed three areas for seeking investments: within the province/region through the support of SMEs; through big corporations; and through FDIs.
Mr. Yu then proceeded to help participants understand FDIs to address unemployment in the shortest possible time. He said that in business, there must be “capability before opportunity”. This means that entrepreneurs must build their capacity first before promoting their business. He also mentioned the importance of an investment promotions unit. He said the economic future of a place cannot be left to happenstance.
Foreign investors consider the following criteria for investing: policies of the host countries; proactive measures that countries adopt to promote and facilitate investment; and characteristics of their economies.
Finally, Mr. Yu also gave three must-do activities in investment promotions: (1) planning to define focus, (2) capability building, and (3) actual investment promotion.
Reaction from Mr. Jack Barton Duff
Mr. Duff is the executive vice president of the Puerto Princesa Chamber of Commerce. He was tasked to give a reaction to Mr. Yu’s presentation.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 13 Documentation Report on Private Sector Learning Activity, September 2016 He said that the Philippines is an easy place is to spend money but a difficult place to earn it. There is uncertainty on investment contracts in the country due to constitutional issues, law and order, corruption, and the complexity of doing business due to red tape.
Mr. Duff said the development of the promotions and investment center is good because it combines the support of government and private institutions. However, every LGU should have a comprehensive development plan. He also pointed out the need for the cities to promote themselves locally and internationally. Mr. Duff recognizes the importance of having a strong partnership between the In addition, he suggested the use of development growth government and the private sector. (instead of economic growth), and law and order (instead of peace and order).
SESSION 4: PUBLIC-PRIVATE PARTNERSHIP – HARNESSING THE PRIVATE SECTOR FOR ECONOMIC GROWTH
Session Description: The session discussed PPP as a viable option for local governments to finance their many infrastructure projects. The session also shared the services being offered by the PPP Center.
Session Resource Person:
Atty. Andre Palacios is the executive director of the PPP Center of the Philippines.
Highlights:
According to Atty. Palacios, two main types of PPPs are being implemented in the Philippines– the Build, Operate, Transfer (BOT), and the Joint Venture.
There are a lot of successful national PPP programs in the country such as the North Luzon and Southern Luzon Expressway. The PPP Center is currently working on 53 national government projects, mostly in transportation. Because of strong political support at the national level, there has been accelerated annual infrastructure spending, which were Atty. Palacios promotes PPPs as a financing alternative done through PPP projects. However, there is to fund LGU projects with the private sector. promote a need to amend the BOT law because of problems in the project implementation phase of some projects.
Atty. Palacios reiterated that PPPs can be a viable option for LGUs to help close the country’s huge infrastructure gap. He further encouraged the LGUs to pass a PPP ordinance. He concluded
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 14 Documentation Report on Private Sector Learning Activity, September 2016 by promoting the PPP Center as a resource to assist LGUs interested in doing small and mid-size infrastructure projects.
SESSION 5: PUBLIC-PRIVATE PARTNERSHIP: THE ILOILO EXPERIENCE
Session Description: This session was meant to share the successful conduct of the Dinagyang Festival in Iloilo City through PPP.
Session Resource Person:
Mr. Ramon Cua Locsin is the president of the Iloilo Dinagyang Foundation.
Highlights:
Mr. Locsin presented the famous Iloilo Dinagyang Festival as an example of a successful PPP in the city. The festival used to be handled by the city government until it was turned over to the Iloilo Business Club in 2000. The private organization tirelessly promoted it locally and abroad. Since then, the Dinagyang has gained a lot of recognition and won many times as a Champion of the Aliwan Fiesta organized by the Manila Broadcasting Company and the Cultural Center of the Philippines. Mr. Locsin talks about the Iloilo Dinagyang Festival, a successful PPP project.
Reaction from Mr. James Cesar Makasiar
Mr. Makasiar is the vice president for external affairs of the Zamboanga City Chamber of Commerce & Industry Foundation.
Mr. Makasiar said that Zamboanga also has its own festival but it’s not as big as Dinagyang. He added that their city would like to learn from the best practices of Iloilo City.
SESSION 6: IMPROVING THE BUSINESS CLIMATE: THE ROLE OF THE PRIVATE SECTOR Mr. Makasiar shares Zamboanga City’s festivities. Session Description: The session highlighted the role of the private sector in fostering a positive environment for doing business.
Session Resource Person:
Mr. Ryan Evangelista is the executive director of the Australia-New Zealand Chamber of Commerce.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 15 Documentation Report on Private Sector Learning Activity, September 2016
Highlights:
Mr. Evangelista emphasized that private sector dynamism, not a “regulatory business environment”, is key to having a stable business climate. The private sector’s role, therefore, is crucial in fostering a business climate that’s hinged on competitiveness.
According to the Philippine Institute for Development Studies data, 99.6% of businesses in the country are MSMEs. Seventy percent (70%) of the jobs are generated by these MSMEs which are Mr. Evangelista encourages the private sector predominantly in agriculture. participants to expand their scope of influence and become more involved. Mr. Evangelista presented some reasons on why the private sector needs to get more involved:
There is asymmetric information between businesses and government; hence, there is a need to collaborate to ensure that the objectives of the government and the private sector are aligned and complementary. There is a need to ensure an economic environment that will foster the growth of entrepreneurship and investment.
Mr. Evangelista concluded his presentation by encouraging the private sector to understand the legal framework of private sector participation. He said that the private sector must continue to cultivate good relations and build alliances.
Reaction from Ms. Donna Ratilla
Ms. Donna Ratilla is the president of the Iloilo Chamber of Commerce and Industry.
Ms. Ratilla offered her observations about the business climate in Iloilo City. She said that there is a strong relationship between the local government and the private sector. Although the city lacks good policy support and business organizations need to help lay out the policy directions. She also mentioned the need to support and reinforce the investment and environment codes of the city.
There were also reactions from the other participants, as summarized below:
In Puerto Princesa, there are many tour associations but some are not recognized. The city is geographically big with a small population; hence, having multiple groups creates a precarious situation. Mr. Evangelista said that the role of the bigger organization is to ensure cooperation, if not mediation. Further, he said that it’s good to have a champion to bring all the groups together.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 16 Documentation Report on Private Sector Learning Activity, September 2016 Zamboanga Chamber asked Mr. Evangelista’s assistance on how it could do business with the European Union (EU) as 6,000 Philippine products are already accredited and the EU tariff is at 0%. Mr. Evangelista assured the group that he will connect them with his contacts in the New Zealand Chamber of Commerce.
SESSION 7: INVESTING IN HUMAN CAPITAL: MATCHING EDUCATION WITH THE NEEDS OF INDUSTRY
Session Description: This session put forth issues in developing human capital, particularly in matching efforts by the academe to match industry needs.
Session Resource Persons:
Dr. Nehemia Misola is the vice president for administration and finance at the Iloilo Science and Technology University. Dr. Misola represented the government-industry-academe consortium in Iloilo City. She was also a regional coordinator of the German International Cooperation.
Allen Son Tan is the president of Dream Believe Connect and a member of the Iloilo Business Club.
Highlights:
Dr. Misola emphasized the importance of human capital in economic growth. She said the government-industry-academe consortium was created based on the gaps discovered by university researchers. Businesses generated by the private sector and projects implemented by the government were not in sync with courses offered by academic institutions.
She shared the results of the value chain analysis conducted for Iloilo City which highlighted the need for competency skills in the banking industry and job USAID’s Jay de Quiros presents Dr. Misola a certificate of appreciation after her discussion on mismatch. matching education with industry needs.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 17 Documentation Report on Private Sector Learning Activity, September 2016
Mr. Tan’s presentation, an e-community where the academe and industry can connect, complemented Dr. Misola’s earlier presentation.
The Dream, Believe, Connect concept was crafted to help with three things: the academe does not have data for top ranking courses needed by industry; there is job skills mismatch because parents and their children have inadequate information; and placement offices have a hard time monitoring their graduates. The project monitors the percentage of university graduates who were employed six months after graduation. It also constantly updates the status of DBC president Tan explains maximizing technology to connect the academe and business. graduates from partner universities and matches their courses to their current jobs.
Reaction from Atty. Bernardo Mayo
Atty. Mayo is the president of the Metro Batangas Business Council and a board of director of the University of Batangas.
Atty. Mayo said that the academe must do a forecast of industry needs to avoid what happened to the nursing bubble. In Batangas, there is an exodus of teachers from private to government schools due to higher salaries. Moreover, very few students want to become teachers. He is concerned about the government’s direction on TESDA and whether it will reduce the number of college years because of the skills developed in Grades 11 and 12. He shared his frustration that private schools cannot handle Grade 11. He also talked about “outcomes-based education” where teachers should be practicing experts in their respective fields. He asked whether industries were willing to lend their experts to the universities.
There were several reactions from the participants, summarized as follows: Mr. Oculam mentioned that a student’s choice of course is still influenced by his parents. Thus, there is a need for closer collaboration between the academe and the industry in coming up with better career trends. Dr. Misola added that skilled workers abroad (carpenters) are being required a TESDA Certificate. But since most workers learn from experience, she suggested an expanded tertiary education program where graduates can get certified based on skills. Ms. Gasatan shared that, in Bohol, some of the teachers of the tourism industry immersed themselves in the resorts to learn the business first hand. Mr. Arnuco expressed that a large percentage of agricultural workers cannot afford college. He said that there is a need to strengthen higher education by focusing on research and development. He added that there is no program for the “entrepreneurial poor” or the sons of farmers and fisher folk who get to study only up to Grade 4. Ms. Urbanek said that the current educational system produces graduates with an employee mentality but there is a need to train more entrepreneurs.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 18 Documentation Report on Private Sector Learning Activity, September 2016
SESSION 8: CITY COMPETITIVENESS: LESSONS FROM CMCI ON CREATING A CONDUCIVE ENVIRONMENT FOR BUSINESS
Session Description: This session highlighted the results from the study of the National Competitiveness Council and lessons for finding the competitive edge of cities.
Session Resource Person:
Dr. Alvin Ang is a consultant for the National Competitiveness Council.
Highlights:
Dr. Ang presented the elements of competitiveness at the local level and the top three indicators based on a study by the National Competitiveness Council. These are economic dynamism, government efficiency and infrastructure. Data collection and a primary database to help LGUs manage their cities is one of the major accomplishments of the study. He said that more cities are joining the study in order for their LGUs to be recognized as well. He said that there will be additional indicators to measure sustainability such as governance and social capital. Five out of the six CDI cities were assessed, NCC consultant Dr. Ang presents the elements to improve a except for Tagbilaran City. city’s competitiveness standing.
Reaction from Mr. Ralph Paguio
Mr. Paguio is the past president of the Cagayan de Oro Chamber of Commerce.
Mr. Paguio said local governments do not want to be measured because it will affect their political plans but admitted to the high level of participation among the LGUs. He also suggested that the indicators be further simplified.
Mr. John Avila wrapped up the day’s session by asking the participants to use their data to analyze their cities’ strengths and weaknesses. He said that the cities should use the data in crafting better and more responsive action plans for the long term.
Day 3 – June 29, 2016
SESSION 9: BUILDING A RESILIENT ECONOMY: THE ROLE OF BUSINESS
Session Description: This session highlighted lessons on climate change and the need for businesses to adapt to a new normal.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 19 Documentation Report on Private Sector Learning Activity, September 2016
Session Resource Person:
Moncini Hinay is the program manager of WWF Philippines.
Highlights:
Mr. Hinay’s report focused on several climate and economic indicators such as climate exposure, socio-economic sensitivity, adaptive capacity and future scenarios. He presented climate change patterns in key cities in the Philippines and data on rainfall, flooding, temperature rise, and sea level rise, among others. He said that the country is trying to catch up on data gathering efforts in the last 20 years.
He indicated that rainfall do not have specific patterns, citing Baguio City with the most rainfall and General Santos City with the lowest rainfall along with Puerto Princesa and Zamboanga City. He encouraged cities to find the means to harvest rainwater. He said that 13 out of the 16 cities studied have increasing rain volumes.
On flood zones, he emphasized the need for integrated river basin management in cities within the delta. The 1993-2003 trend shows that the Philippines is experiencing thermal expansion, retreating coastlines, and an increasing threat of saltwater intrusion.
On socio-economic sensitivity, Mr. Hinay explained that the country’s geographic make up and location make economic growth and development challenging. The country also has a booming population, with Baguio City being the highest in population density, and CALABARZON with the highest population.
He mentioned the importance of drafting responsive comprehensive land use plans incorporating disaster management and climate change adaptation measures.
Education, health and housing are also major factors in development. He said that extreme weather events repel while housing units attract development. Data show that cities with the most housing units are those with high registered businesses as well.
Mr. Hinay also gave significant data on the relation of food security and adaptive capacity. He said that most cities are trade dependent and do not produce their own food. Water production and consumption is increasing and the country will experience water shortage in the next 25 years unless something is done. Cities cited in the study also have high carbon zones and air pollution.
Finally, he highlighted the need to invest in renewable energy. Cities need to retrofit seaports, airports, economic and housing zones to adapt to climate change.
Reaction from Mr. Norris Oculam
Mr. Oculam is the executive vice president of the Bohol of Chamber of Commerce and Industry. He opened with a quote, “It is not the strongest nor the smartest of species that survive but the most adaptive and responsive to change.”
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 20 Documentation Report on Private Sector Learning Activity, September 2016 He said that climate change mitigation must be everyone’s business. He emphasized the need for everyone to adhere to environmental laws, practice waste segregation, and plan for the future by factoring in the demographic data presented. He challenged everyone to come up with a master plan for climate change and a development plan in the next few years (e.g. CLUP).
Mr. Oculam proposes to address environmental concerns.
SESSION 10: VALUE CHAIN: A STRATEGIC TOOL IN BUSINESS DEVELOPMENT AND HOW CITIES CAN PARTICIPATE
Session Description: The session explained how the value chain is an important tool and how the cities can use it to further business development.
Session Resource Person:
Engr. Miriam Bacalso is the senior regional coordinator of the German Technical Cooperation.
Highlights:
Engr. Bacalso presented the value chain approach and explained why they are promoting it as a tool for business development.
She started by explaining the concept of “value adding”, and how value must be understood from the consumers’ perspective. Consumers nowadays are in a hurry, have become more demanding, and want value for money. Therefore, businesses need to offer more since Engr. Bacalso explains VCAs and its consumers are willing to pay for better quality products or importance as a business development tool. a “value adding experience”. From a business perspective, adding value is an opportunity and a motivation to be competitive.
She proceeded to explain the value chain as a sequence of related activities from input provision up to the final sale. She said that value chains must be competitive. It is, therefore, imperative to understand the components of the business value chain, the needs of the market, and the actors in it, such as MSMEs.
Finally, she cited the role of cities in business and economic development: improving local economic competitiveness requires the active participation of LGUs, which are critical to the expansion and creation of jobs in the private sector; local governments need to create an environment conducive to businesses; and
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 21 Documentation Report on Private Sector Learning Activity, September 2016 local governments are best positioned to create realistic economic development strategies grounded on the specific strengths of the community, and to mobilize resources for implementation.
SESSION 11: GROWING THE ECONOMY THROUGH INDUSTRY CLUSTERS
Session Description: This session provided examples on the work of industry clusters and how this has helped grow the economy.
Session Resource Person:
Jerry T. Clavesillas is a director of the Bureau of Small and Medium Enterprise Development in the Department of Trade and Industry.
Highlights:
Mr. Clavesillas shared that the farmers who are the primary processors and growers are the weakest link in the value chain. Because of rapid migration from rural to urban areas, farmers do not see their role in the economy.
He believes that the value chain approach will work as long as the cities apply the results in creating economic clusters like the one town-one product concept. Clustering creates a stronger stand in every aspect of business such as in marketing, selling and even trading.
He explained the need to make farmers sustainable suppliers through the clustering approach. If the DTI Director Clavesillas promotes the processors and traders earn 10%, the farmers must also development of more economic clusters to benefit the farmers who are the weakest link in earn 10%. He said that the mark-up or value added must the value chain. be the same across the cluster.
He emphasized how trust is crucial and how it will be difficult to progress if there is no trust among the stakeholders in the cluster. Members of the cluster are also expected to learn how to build trust among the stakeholders.
Mr. Clavesillas presented the following benefits of clustering: Linkage with the market Linkage with suppliers Linkage of support agencies Linkage with Firms Increased sales Easy financial intervention New and innovative products
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 22 Documentation Report on Private Sector Learning Activity, September 2016 Lastly, he explained that the LGUs must organize their business sectors into clusters and provide the necessary interventions that are required by each cluster.
WORKSHOP PROPER
Dr. Susan Brems, mission director of USAID Philippines, had a lunch meeting with the participants. This was followed by two workshops in the afternoon session geared towards action planning for the next four years. Atty. Evelyn Jiz, component II lead, presented the workshop mechanics.
In both workshops, the city program coordinators acted as facilitators. After the workshop, reporters were chosen from each city. (Attached with this report are the presentations of each city.)
A summary of the workshop presentations follows:
Workshop 1: Business Attraction and Expansion: Opportunities and Challenges
Most of the cities discussed the weak link between the private sector and the local government. CDO and Zamboanga Chamber members The private sector is not involved in the exchange ideas during the workshop. planning process such as the development of the CLUP, the investment plan, and the business permitting system. Two out of six cities cited the outdated mission and vision of their city. Two cities also mentioned problems with utility costs.
Workshop 2. Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities Almost all of the cities consider strategic planning and dialogue necessary so that both the local government and the private sector can address “inclusive and resilient growth”. Tagbilaran, Puerto Princesa, Zamboanga, and Batangas identified the establishment/strengthening of their Investment Promotions Council to support local economic growth. Tagbilaran, Iloilo and Zamboanga further recommended the need to discuss disaster management and climate change in their respective business plans.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 23 Documentation Report on Private Sector Learning Activity, September 2016 CLOSING PROGRAM
To close the program, Dr. Irene Floro from Cagayan de Oro gave an insightful reflection. She focused on the concerns of the local government and the private sector and recognized the need for complementation rather than competition among the cities. She said that they came to Iloilo City as elementary students or empty vessels and that their greatest learning was to introduce their brilliant ideas using gentle persuasion. She ended her reflection by stating that being good is good business.
Mr. Felix Tiu of Iloilo City gave the Closing Remarks. He gave a summary on what transpired in the past three days. His quote, “ask not what USAID can do for you, but what you can do for your city”, was well applauded.
Mr. Jay de Quiros gave a message on behalf of USAID. He stated that USAID turns to the participants who are the experts and can advise on what needs to be done in the partner cities.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 24 Documentation Report on Private Sector Learning Activity, September 2016 Annex 2. Output of Workshops 1 and 2
Table 1. Batangas City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges
Areas of Involvement Issues Impact/ Effects Contribute to increase in city’s Land use, zoning and competitiveness referring to classification conflicts (e.g. Cities and Municipalities between industrial and Competitiveness Index (CMCI) residential) dimensions Actively participate in Access to information (fact infrastructure and land use sheets) planning processes (e.g. redundant structures, walkable city) Contribute to a focused Lack of institutionalized private Lack of ownership of business investment system sector involvement development process (e.g. business specific approach Need for increased Limited benefits (lack of that involves various businesses representation of various inclusiveness) and develop necessary organizations in the city information for investors) development process Need for an inter-LGU Missed opportunities for growth coordination to resolve trans- boundary issues Parochial planning approach
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 25 Documentation Report on Private Sector Learning Activity, September 2016
Table 2. Batangas City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities
Areas for Interventions Technical Other Resource Needed Involvement (Projects/ Assistance Activities) Needed Own External
Contribute to Open discussions Analysis and Venue and Food, materials increase city’ with concerned presentation of invitations and resource competitiveness stakeholders (e.g. city’s persons referring to CMCI government and competitiveness dimensions private) to solicit and indicators inputs for enhancing competitiveness (status, targets vs. gaps)
Periodic self- Train the team on Team Trainer and monitoring and using the CMCI Monitoring and evaluation of targets indicators Evaluation using the CMCI (M&E) system indicators
Actively participate Open dialogue/ Orientation on LGU Venue and in infrastructure and meeting with the planning and invitation of land use planning City Planning and budgeting process LGU officials processes (e.g. Development Office redundant on land use structures, walkable planning and city) development processes (Department of Public Works and Highways-roads; Countrywide Development Fund - infrastructure/ development projects)
Contribute to a Open dialogue on Capacitate the focused business priority investment Local Economic and investment system areas and strategies Investments (e.g. business Promotion Office specific approach and develop that involves various networks with businesses and interested investors develop the necessary Roadshow and Linking business information for study tours (e.g. forum organizers investors participate in business forum)
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 26 Documentation Report on Private Sector Learning Activity, September 2016 Areas for Interventions Technical Other Resource Needed Involvement (Projects/ Assistance Activities) Needed Own External
Contribute to the Organize small Organizational Venue and Food, materials establishment of a networks of development expert invitations and resource trade center/ exhibitors persons showroom of Batangas products
Host a location/ Packaging, Training and space for the marketing and packaging showroom product expert development
Table 3. Puerto Princesa City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges
Areas for Involvement Issues Impact/ Effects Investment Promotion Inadequate information re: PPC Lack of diversity in investment resources on investment opportunity – slow movement of opportunities investment in other sectors Absence of a functional and efficient besides tourism city investment promotion office Cumbersome business permitting Duplication of business system opportunities Lack of incentive program for investors High unemployment and Lack of economic zones underemployment rate Lack of consultation-Comprehensive Land Use Plan (CLUP) preparation Barangay Micro Enterprise Law not implemented Lack of support infrastructure facilities Lack of skilled workers and expert consultants for industries Business Expansion Traffic problem Lower productivity; low Zoning limitation – land use, height employment; higher cost of limit of building, settlement problems products and services; High cost and unreliable power presence of monopoly; supply hoarding; “price war intensified Lack of incentives for companies by cut throat competition” doing business expansion Lack of supply and high cost of raw materials High cost of “green technology”
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 27 Documentation Report on Private Sector Learning Activity, September 2016 Areas for Involvement Issues Impact/ Effects Policy Advocacy Conflicting policies Delay in the implementation of Non-compliance with environmental programs and projects; high policy cost of implementation of Lack of public consultation – policy projects; projects not formulation implemented according to Lack of non-partisan decision making standards process – unqualified personnel in key policy decision making processes
Table 4. Puerto Princesa City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities
Areas for Interventions Technical Other Resource Needed Involvement (Projects/ Assistance Activities) Needed Own External
Set and work with Technical Venue and Cost of hiring a the city assistance meals Technical Expert – USAID SURGE government in development with Cost of Investment setting up the city City Governor to participation Promotion City govt.-other cost of investment office define the TOR meeting of the office
Develop and Technical Venue and Cost of hiring a strengthen the guidance and meals Technical Expert – structure and capacity building USAID SURGE Cost of system for the city participation City govt.- other cost of investment office meeting (with database)
Review and update Technical Venue and Cost of hiring a city investment guidance meals Technical Expert – USAID SURGE code and re- Cost of organize city participation City govt.- other cost of investment board meeting
Set and work with Technical Venue and Cost of hiring a the city govt. in assistance meals Technical Expert – setting up the city SURGE USAID Development of Cost of investment office an agreement participation City govt.- other cost of with city meeting government to define TOR of the office
Develop and Technical Venue and Cost of hiring a strengthen the advisement and meals Technical Expert – structure and capacity building SURGE USAID Cost of system for the city participation City govt.- other cost of investment office meeting
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 28 Documentation Report on Private Sector Learning Activity, September 2016 Areas for Interventions Technical Other Resources Needed Involvement (Projects/ Assistance Activities) Needed
Investment Review and update Technical Venue and Cost of hiring a Promotion city investment advisement meals Technical Expert – code and re- USAID SURGE Cost of organization of city participation City govt.- other cost of investment board meeting
Invite Mindanao Facilitation Venue and Cost of hiring a Development meals Technical Expert – USAID SURGE Authority (MinDA) Cost of and Zamboanga participation City govt.- other cost of Ecozone Rep – to meeting join a forum on ecozone establishment
Advocate for Facilitation Venue and Facilitation- USAID establishment of meals SURGE an enhanced Cost of City govt.- other cost of electronic business participation meeting permitting system
Participation in the Facilitation Venue and Facilitation- USAID development of an meals SURGE electronic business Cost of City govt.- other cost of permitting system participation meeting Technical inputs- other cost of meeting Stakeholders-IT providers
Information, Facilitation Venue and Facilitation- USAID education and meals SURGE communication Cost of City govt.- other cost of campaign and participation meeting capacity building for implementing an electronic business permitting system
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 29 Documentation Report on Private Sector Learning Activity, September 2016 Areas for Interventions Technical Other Resource Needed Involvement Assistance (Projects/ Needed Own External Activities)
Business Conduct meetings Facilitation Venue and Facilitation- USAID Expansion and and dialogue with meals SURGE Policy Advocacy national, provincial, Cost of City govt.- other cost of city govt. to participation meeting address issues and concerns on National, Province, City business and Government – expansion Other cost of meeting
Active participation None Participation National, Province, City in the provincial and Government – and city Other cost of meeting development councils
Invite provincial Facilitation Venue and Facilitation- USAID and city meals SURGE government Cost of City govt.- other cost of officials to participation meeting Chamber and Council meetings National, Province, City and Government – Other cost of meeting
Policy Advocacy Conduct Facilitation Venue and Facilitation- USAID consultation with meals Surge Energy Regulatory Cost of City govt.- other cost of Commission participation meeting (ERC), Department of Energy, National, Province, City PALECO, and and Government – other independent Other cost of meeting providers
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 30 Documentation Report on Private Sector Learning Activity, September 2016 Table 5. Iloilo City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges
Areas for Involvement Issues Impact/ Effects Networking Full automation of business Still slow business processing permitting system (there is still human interaction) Data banking Investors have a dilemma on where to get information
Slow information gathering Information technology Slow internet connection
Connection is not available in some parts of the city
Online business transaction cannot be promoted Geographic information system No basis for disaster risk maps of entire city reduction, economic strategic placements
Maps are not being shared with the business sector and not fully utilized. Utilities Price (electricity) Higher price are a turn off to investors Water (quality and supply) Lack of promotion regarding rainwater harvesting and water demand management Tourism No proper tourism plan Slow business Lack of tourism opportunities Minimal revenue from tourism No constant coordination Low exposure of Iloilo City to between the city and regional international market Department of Tourism Poor branding Lack of information and Lack of proper promotion promotion: re: accreditation of (promotion is more focused on tour companies Dinagyang Festival only). Very few tourism destinations Typhoon prone
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 31 Documentation Report on Private Sector Learning Activity, September 2016 Table 6. Iloilo City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth Areas for Interventions Technical Other Resource Needed Involvement (Projects/ Assistance Own External Activities) Needed
Networking Meeting with the IT expert Mayor to discuss concerns
Meeting with the Records Investment Management Board on Specialist determining data needed to be gathered (business trends, industries needed)
Utilities Meeting with the Mayor to discuss concerns
Gather status Financial Research & information from support Development Panay Electric through Company academe (PECO), Metro Iloilo Water District, power suppliers
Lobby with Baseline study Congressman Trenas on the PPP concept for Panay Electric Company(PECO)
Tourism Meeting with the Mayor to discuss concerns
Meeting with the Training for Technical City Tourism tourism front assistance (TA) Council liners and from Tourism officers Council
Tourism Awareness Campaign, Roadshows
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 32 Documentation Report on Private Sector Learning Activity, September 2016
Table 7. Tagbilaran City Output of Workshop 1: Business Attraction and Expansion – Opportunities and Challenges
Areas for Involvement Issues Impact/ Effects Policy Advocacy Good governance and Lack of levelling off between Fragmented urban development transparency LGU and business sector Lack of continuity of city plans Strategic directions – setting Lack of continuity in city and projects land use & urban planning, leadership spatial development Weak strategic directions Outdated city vision and mission Environmental management and not in tune with current Prone to hazards, businesses urban realities not disaster-ready and climate Traffic management, change adaptive infrastructure and transport Businesses not aware of geo- systems hazards, structures, and buildings not resilient/ disaster ready Business Development and Investment Promotion Investment promotion No city staff/ office in charge of Less investment flow investment promotion Weak investment focus in terms of services, priority areas MSME development and No intervention on the growth of MSMEs less capacitated to be strengthening MSMEs in the city dynamic sectors in the local economy Provision of business development services
Table 8. Tagbilaran City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities
Areas for Involvement Interventions Technical Other Resources (Projects/ Activities)* Assistance Needed Needed Set up periodic and Policy Advocacy Facilitator Own External regular dialogues and (lack of leveling off with sharing and Meeting Meeting LGU) consultation with city costs costs Initiate the formation of Policy Advocacy Facilitator Meeting From other a LEADERSHIP costs private (lack of continuity in COLLECTIVE – a TA for good groups – leadership) private sector led city governance and community building Venue advocacy group for meeting economic and Secretariat costs
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 33 Documentation Report on Private Sector Learning Activity, September 2016 Interventions Areas for Involvement Technical Other Resources (Projects/Activities) Assistance Needed Needed governance reforms in
the city Actively participate in Policy Advocacy Facilitator Own External the formulation of (outdated city vision, updated Vision and governance) Mission statements Time spent Meeting incorporated in the costs Comprehensive Development Plan Venue (CDP) Engage business sector Policy Advocacy Climate Change Meeting USAID to formulate and adopt Specialists with costs/ Time SURGE/ (not aware of geo- a climate change and business orientation spent/ LGU hazards & other CC- disaster-ready business like World Wildlife Secretariat/ defined risks) risk adaptation, Fund (WWF)/ accommo- resiliency and business Business Continuity dation continuity plan Planner
Specialists on Promote and adopt “greening the green businesses business” Formulate a climate Policy Advocacy (not Resilient Meeting USAID change and disaster- aware of geo-hazards infrastructure costs/ Time SURGE/ & other CC-defined ready, resilient planner spent/ LGU risks) business infrastructure Secretariat/ that addresses the accommod sinkholes in the city and ation other natural/ geo- hazards Engage the business Policy Advocacy Technical Own Others (Traffic and community and LGU in assistance for the the conceptualization of Private Transportation) feasibility of a mass a framework plan and sector can transport system for USAID pre-feasibility study for shoulder SURGE connectivity and meeting a mass transport and LGU access costs, system i.e. monorail for support Tagbilaran, connecting secretariat the city to the rest of and Bohol for greater documen- access and tation connectivity; a study which can be readily marketable to national agencies or private investors
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 34 Documentation Report on Private Sector Learning Activity, September 2016 Interventions Areas for Involvement Technical Other Resources (Projects/Activities) Assistance Needed Needed
Orientation of Facilitator Provision of staff on accommo- investment dation promotion Documenter facilities, Physical Design of investment- Vehicle friendly IPC support TA for IPC operationalizati on start-up Learning exposure and exchange to selected city IPCs Preparation of IPC Operations Manual and promotion collaterals Advocate for the Business development Facilitator Own External (BD) and Investment strengthening of City
Promotion MSME Development Council. Meeting Meeting (MSME & Provision of costs costs BDs) Provide support for Business Development Facilitator Own External building business and Investment TA on setting up Promotion capacities of MSMEs & BDS Center through the Chamber Meeting Meeting (MSME & Provision of organized and Curriculum Design costs costs BDs) academe supported Specialist business development services (BDS) center Module Design and Setting up the Publication BDs Center Preparation of training modules Marketing and promotion *Private Sector’s 10 point agenda
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 35 Documentation Report on Private Sector Learning Activity, September 2016 Table 9. Cagayan de Oro City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges Areas for Involvement Issues Impact/ Effects Creation of a confederated Uncoordinated business groups Synergy and interconnectivity business group in the among business groups metropolitan area: CDO and peri-urban areas (towns in Misamis Oriental and Bukidnon); also involving existing foreign investors
Formulation of common Lack of integration and “one voice” in area promotion aspiration/ vision document prioritization of concerns
Table 10. Cagayan de Oro City Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities
Areas for Interventions Other Resources Needed Involvement (Projects/ Activities) Technical Assistance Needed Own Others
Advocacy/ unifying 1. Brainstorming Facilitator Secretariat session with area business groups business leaders in the metropolitan area 2. Area Strategic Planning (vision, strategic actions)
Activity Support
Scaling up city Creation of TWG Economic data competitiveness action agenda
Promotion of green ORO Best 2016 Experts (USAID Secretariat business theme; Spearheading B-LEADERS Inclusive Growth for 1 support) Mindanao
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 36 Documentation Report on Private Sector Learning Activity, September 2016 Table 11. Zamboanga City Output of Workshop 1: Business Attraction and Expansion Opportunities and Challenges
Areas for Involvement Issues Impact/ Effects
Constant engagement with and Inadequate infrastructure Decongesting city center with strengthening private sector’s (airport, seaport & container well-designed communities in participation in local governance yard) the east and west coast such as:
Proposal on Interruptible Load
Program (ILP) to encourage local players to avail of off-grid electricity incentive
Policy advocacy such as: Expensive and inadequate Avoid blackouts Implementation of fishing ban to energy Availability of more power for preserve long-term raw material small business supply
Initiate new businesses in the east Inadequate technology & and west side outside of the city connectivity center
Table 12. Zamboanga City Output of Workshop 2: Private Sector Agenda for Inclusive and Resilient Economic Growth in Cities
Areas for Interventions Technical Assistance Other Resources Involvement (Projects/ Activities) Needed Needed (Own & External) Constant engagement Fixed seats for private Provide capacity USAID SURGE with and strengthening sector as members of building for private private sector’s the Trade Investment organizations such as: participation in local Council advocacy, membership governance covering & relationship building energy and trade such Proper representation with other stakeholders as: in the ZAMCELCO board with five board Proposal on seats Interruptible Load
Program (ILP) to encourage local players to avail of off- grid electricity incentive
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 37 Documentation Report on Private Sector Learning Activity, September 2016 Areas for Interventions Technical Assistance Other Resources Involvement (Projects/ Activities) Needed Needed (Own & External) Constant engagement Proactive role in Provide capacity USAID SURGE with and strengthening protecting the business building for private private sector’s community via the organizations such as: participation in local Peace & Order Council advocacy, membership governance covering & relationship building energy and trade such Regular engagement with other stakeholders as: with other stakeholders of the city Proposal on Interruptible Load Revisit and validate City Master Program (ILP) to Development Plan encourage local players to avail of off- grid electricity incentive Policy advocacy such Technical study of fish- Industry experts Bureau of Fisheries as: breeding (scientists) and Aquatic Resources USAID Implementation of fishing ban to preserve long-term raw material supply Initiate new businesses Identify which growth Foreign blueprints for Infrastructure in the east & west side areas need to be community Waterways outside of the city developed development Utilities center Proposed incentives for the private sector
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 38 Documentation Report on Private Sector Learning Activity, September 2016 Annex 3. Program
Building Cities Towards Inclusive and Resilient Economic Growth Iloilo Convention Center, Iloilo Business Park, Iloilo City June 27-29, 2016
Time Activity Resource Person Day 1 | June 27, 2016 3:30 PM Glimpses of Iloilo’s History & Development Iloilo City Tourism Office 6:30 - 9:00 PM Welcome Dinner Tatoy’s Manokan Convention Hall, Villa de Arevalo, Iloilo City Opening Program Hon. Jose Espinosa III Welcome Remarks Vice Mayor, Iloilo City
Stephen Andoseh, PhD Message from USAID Deputy Office Director Office of Economic Development and Governance
Introductions/Lightning Talks (5-7 mins. per Representative from each city City) on PS successful project on economic growth by itself or in collaboration with City Government. Day 2 | June 28, 2016 8:30 - 8:45 AM Topic 1: Overview of the SURGE Project John Avila, USAID Economic Growth Specialist 8:45 - 9:45 AM Topic 2: Trends in Global and National Mr. Edser Trinidad, Head of Equity, Economic Development: Implications on Philam Life Business and the Private Sector
Open Forum 9:45 - 10:45 AM Topic 3: Trade and Investment Promotion Mr. Joel Yu, and Facilitation Former Undersecretary, Department of Trade and Industry
Mr. Jack Barton Duff Reaction Puerto Princesa Chamber of Commerce 10:45 - 11:00 AM Coffee Break 11:00 - 12:00 NN Topic 4: Public-Private Partnership - Atty. Andre Palacios, Executive Harnessing the Private Sector for Director, PPP Center of the Economic Growth Philippines
Topic 5: Public Private Partnership: The Mr. Ramon Cua Locsin Iloilo Experience President, Iloilo Dinagyang Foundation
Reaction Mr. James Cesar Makasiar VP –External Zamboanga City Chamber of Commerce & Industry Foundation
Open Forum
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 39 Documentation Report on Private Sector Learning Activity, September 2016 Time Activity Resource Person 12:00 - 1:30 PM Networking Lunch 1:30 - 2:30 PM Topic 6: Improving the Business Climate: Mr. Ryan Evangelista, Executive The Role of the Private Sector Director, Australia-New Zealand Chamber of Commerce
Reaction Ms. Donna Ratilla President, Iloilo Chamber of Commerce & Industry 3:00 - 3:15 PM Coffee Break 3:15 - 4:15 PM Topic 7: Investing in Human Capital: Dr. Nehema Misola, Chair, Iloilo Matching Education with the Needs of Government-Industry-Academe Industry Council
Allen Son Tan, President, Dream Believe Connect Inc.
Reaction Atty. Bernardo Mayo President, Metro Batangas Business Council Open Forum 4:15 - 5:00 PM Topic 8: City Competitiveness: Lessons Dr. Alvin Ang from CMCI on creating a conducive Consultant, National environment for business Competitiveness Council
Reaction Mr. Ralph Paguio Cagayan de Oro Chamber of Commerce
Day 3 | June 29, 2016 8:00 - 9:00 AM Topic 9: Building a Resilient Economy: The Mr. Moncini Hinay, Program Role of Business Manager, WWF Philippines
Reaction Mr. Norris Oculam Executive Vice President Bohol Chamber of Commerce & Industry
Open Forum 9:00 - 10:00 AM Topic 10: Value Chain: A Strategic Tool in Engr. Miriam Bacalso Business Development and How cities can Senior Regional Coordinator, participate German Technical Cooperation
Open Forum Topic 11: Growing the Economy Through Jerry T. Clavecillas, Director, Industry Clusters Bureau of Small and Medium Enterprise Development, Department of Trade and Industry
Open Forum 10:00 - 10:15 AM Coffee Break 10:15 - 10:30 AM Workshop Mechanics Atty. Evelyn C. Jiz
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 40 Documentation Report on Private Sector Learning Activity, September 2016 Time Activity Resource Person Lead, SURGE Component 2- Promoting Low-Emission Local Economic Development Strategies 10:30 - 11:30 AM Workshop 1: Business Attraction and Facilitators: City Program Expansion: Opportunities and Challenges Coordinators 11:45 - 1:30 PM Luncheon Conversations with the private Dr. Susan Brems sector Mission Director, USAID Philippines 1:30 - 2:30 PM Workshop 2: Developing a Private Sector Facilitators: City Program Agenda for Inclusive & Resilient Economic Coordinators Growth in Cities 2:30 - 3:45 PM Presentation of Workshop Outputs City Representatives 3:45 - 4:00 PM Closing Program Reflections Representatives from 2 cities
Mr. Felix Tiu Closing Remarks Iloilo City Investment Promotion Board
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 41 Documentation Report on Private Sector Learning Activity, September 2016 Annex 4. List of Participants
MEMBERS FROM THE PRIVATE SECTOR
Batangas 1. Vicente Bernardo Mayo 2. Erlan Antonio Olavere 3. Edgardo Dimaano 4. Carmela Nieto CDO 1. Irene Floro 2. Jaime Rafael Paguio 3. Roberto Ansaldo 4. Anna Marie Medes Iloilo 1. Donna Ratilla 2. Felix Tiu 3. Fullbert Woo 4. Prudencio Recano Puerto Princesa 1. Arjennel Lim 2. Jack Barton Duff 3. Jane Urbanek 4. Richard Arambulo 5. Deborah Tan 6. Mary Grace Abdon Tagbilaran 1. Albert Uy 2. Argeo Melisimo 3. Marietta Gasatan 4. Norris Oculam Zamboanga 1. James Cesar Makasiar 2. Edwin To 3. Angela Monette Natividad 4. Christopher Lawrence Arnuco USAID 1. Susan Brems 2. Stephen Andoseh 3. John Avila 4. Emil Francis de Quiros SURGE HQ TEAM 1. Sergio Andal Jr. 2. Evelyn Jiz
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 42 Documentation Report on Private Sector Learning Activity, September 2016 3. Pedcris Orencio 4. Rojessa Saceda 5. Ma. Gichelle Cruz 6. Annabella Simbulan 7. Ma. Vanessa Pascual 8. Jay Lowell Payuyo 9. Nathania Vida Abigail Guiang SURGE CPCs 1. Ninfa Albania 2. Deanna Lijauco 3. Gemma Borreros 4. Rosalinda Paredes 5. Annabelle Cajita Support Staff 1. Ritchelle Gavan 2. Ma. Lourdes Garque 3. April Joy Gregorio 4. Switzerlyn Detorio
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 43 Documentation Report on Private Sector Learning Activity, September 2016 Annex 5. Photo Documentation
In photos (from left to right): 1. Dr. Stephen Andoseh, deputy director OEDG of USAID Philippines, giving the message from USAID during the Welcome Dinner on June 27. 2. Bohol Chamber of Commerce and Industry with SURGE city project coordinator of Tagbilaran discussing their economic growth plan during the workshop. 3. Dr. Susan Brems, USAID mission director to the Philippines, conversing with members of the private sector. On her right are PCCI president Mr. Arjennel Lim and MBBC chairman Atty. Bernardo Mayo.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 44 Documentation Report on Private Sector Learning Activity, September 2016 4. Dr. Brems meeting the SURGE city program coordinators 5. Group photo of participants taken on the first day of the conference 6. USAID economic growth specialist Mr. John Avila and program management specialist Jay de Quiros
Annex 6. Visual Aids/ Presentation
Refer to the electronic copies of the presentations sent with this report.
Annex 7. Summary of Evaluation/ Feedback
The participants were asked to answer a post-assessment tool to rate the PS conference at the end of each day. The tool was meant to measure each topic’s relevance, and applicability to their business/work. Participants were also asked to provide insights. On the first day, the most favored topics and speakers were: “Trade and Investment Promotion and Facilitation” by Mr. Joel Mari Yu; “Investing in Human Capital: Matching Education with the Needs of the Industry” by Mr. Allen Son Tan; and “City Competitiveness: Lessons from CMCI on Creating a Conducive Environment for Business” by Dr. Alvin Ang. On the second day, the topic that stood out for participants was “Building a Resilient Economy: The Role of Business” by Mr. Moncini Hinay. This topic received the highest rating in terms of its relevance and applicability. Overall, the group gave the two-day conference high marks. They were very pleased to have listened to a panel of experts. They were also grateful that USAID SURGE initiated this activity which allowed them to collaborate and learn from one another’s good practices. However, participants wanted more time for group discussions and open forum.
USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 45 Documentation Report on Private Sector Learning Activity, September 2016