ASSESSMENT OF IMPEDIMENTS TO URBAN-RURAL CONNECTIVITY IN CDI CITIES Strengthening Urban Resilience for Growth with Equity (SURGE) Project CONTRACT NO. AID-492-H-15-00001 JANUARY 27, 2017 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 (ICMA) and do not necessarily reflect the view of USAID or the United States Agency for International Development USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Pre-Feasibility Study for the Upgrading of the Tagbilaran City Slaughterhouse ASSESSMENT OF IMPEDIMENTS TO URBAN-RURAL CONNECTIVITY IN CDI CITIES 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: January 27, 2017 USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Assessment of Impediments to Urban-Rural Connectivity in CDI Cities Contents I. Executive Summary 1 II. Introduction 7 II. Methodology 9 A. Research Methods 9 B. Diagnostic Tool to Assess Urban-Rural Connectivity 9 III. City Assessments and Recommendations 14 A. Batangas City 14 B. Puerto Princesa City 26 C. Iloilo City 40 D. Tagbilaran City 50 E. Cagayan de Oro City 66 F. Zamboanga City 79 Tables Table 1. Schedule of Assessments Conducted in CDI Cities 9 Table 2. Cargo Throughput at the Batangas Seaport, in metric tons (2015 data) 15 Table 3. Motor Vehicle Registration in the Batangas Land Transportation Office Regional Office, 2007 -2012 24 Table 4. Air Transport Traffic Volume at the Puerto Princesa Airport 27 Table 5. Motor Vehicle Registration, Puerto Princesa LTO District Office, 2007 -2012 36 Table 6. Motor Vehicle Registration, Iloilo LTO Regional Office, 2007 -2015 48 Table 7. Motor Vehicle Registration, Tagbilaran LTO District Office, 2007-2012 64 Table 8. Motor Vehicle Registration, Cagayan de Oro LTO Regional Office, 2007 -2012 78 Table 9. Motor Vehicle Registration, Zamboanga LTO Regional Office, 2007-2012 89 Annexes Annex 1. Diagnostic Tool for Assessing Urban-Rural Connectivity 91 USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Assessment of Impediments to Urban-Rural Connectivity in CDI Cities Acronyms ARMM Autonomous Region in Muslim Mindanao ASUD Achieving Sustainable Urban Development AusAID Australian Agency for International Development BAHRR Bohol Association of Hotels, Resorts, and Restaurants BASULTA Basilan, Sulu, Tawi-Tawi BIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area BIR Bureau of Internal Revenue BUB Bottom-up budgeting CAAP Civil Aviation Authority of the Philippines CAGR Compounded annual growth rate CALABARZON Cavite, Laguna, Batangas, Rizal, Quezon CBD Central business district CBU Completely built units CCTV Closed-circuit television CDI Cities Development Initiative CIC Cagayan-Iligan corridor CIIP Comprehensive Infrastructure Investment Plan CLUP Comprehensive Land Use Plan CRID Coordinating Roads for Investment and Development DA Department of Agriculture DBM Department of Budget and Management DENR Department of Environment and Natural Resources DICT Department of Information and Communication Technology DILG Department of the Interior and Local Government DND Department of National Defense DOT Department of Tourism DOTC Department of Transportation and Communications DOTr Department of Transportation DPWH Department of Public Works and Highways DTI Department of Trade and Industry ECC Environmental Clearance Certificate GIFT Guimaras-Iloilo Ferry Terminal IBC Iloilo Business Club ICAO International Civil Aviation Organization ICC Investment Coordination Committee ICMA International City/County Management Association INVEST Investment Enabling Environment JICA Japan International Cooperation Agency KOICA Korean International Cooperation Agency LGU Local government unit LTFRB Land Transportation Franchising and Regulatory Board LTO Land Transportation Office MARINA Maritime Industry Authority MCT Mindanao Container Terminal MICE Meetings, incentives, conventions, exhibitions/events MICTSI Mindanao International Container Terminal Services, Incorporated MIGEDC Metro Iloilo-Guimaras Economic Development Council MIMAROPA Mindoro (Oriental and Occidental), Marinduque, Romblon, Palawan MinDA Mindanao Development Authority USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iii Assessment of Impediments to Urban-Rural Connectivity in CDI Cities MMT Multi-Partite Monitoring Team MTPIP Medium-Term Public Investment Program MOA Memorandum of Agreement NAIA Ninoy Aquino International Airport NDC National Development Corporation NEDA National Economic and Development Authority NGO Non-governmental organization PAL Philippine Airlines PCBSI Prudential Customs Brokerage Services, Incorporated PCC Philippine Competition Commission PCE Planned City Extension PCSD Palawan Council for Sustainable Development PFG Partnership for Growth PIA PHIVIDEC Industrial Authority PITEC Panglao Island-Tagbilaran Executive Council PMAC Port Management Advisory Council PMMAC Port and Maritime Management Advisory Council PMO Port Management Office PNP Philippine National Police PPA Philippine Ports Authority PPP Public-private partnership PRDP Philippine Rural Development Program PUJ Public utility jeepney PUV Public utility vehicle PWD Persons with disabilities RDC Regional Development Council Ropax RoRo ship for cargo and passengers RoRo Roll-on-roll-of SLEX Southern Luzon Expressway STAR Southern Tagalog Arterial Road SURGE Strengthening Urban Resilience for Growth with Equity SUV Sport utility vehicle TDRO Traffic Development and Regulatory Office TEU Twenty-Foot Equivalent Unit TIEZA Tourism Infrastructure and Enterprise Zone Authority TRB Tollway Regulatory Board TRO Temporary Restraining Order USAID United States Agency for International Development VMS Variable message signs VO Variation order ZEA Zamboanga Ecozone Authority USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iv Assessment of Impediments to Urban-Rural Connectivity in CDI Cities I. Executive Summary Access and connectivity between urban and rural areas are key drivers of economic growth and opportunities. As stated in the SURGE Year 1 work plan, increased connectivity spurs value adding activities in cities that will lead to greater scale. At the rural areas, accessibility of services provided at the urban centers facilitates the exchange of goods and services that can accelerate rural development, reduce income inequality and eventually lower poverty levels. Connectivity between urban and rural areas could be in terms of transportation infrastructure and services such as roads, airport and seaport and through communications and digital linkages such as telephone, internet, television and radio. The project assessed the logistics infrastructure and services in six USAID/Philippines Cities Development Initiative (CDI) cities of Zamboanga, Iloilo, Cagayan de Oro, Puerto Princesa, Tagbilaran and Batangas from April 13 to July 23. This report summarizes the findings and recommendations of the analysis conducted by the project in the following areas - air, sea, land and communication and digital services. A. Assessment Air Transportation Connectivity Except for Batangas City, each CDI city is well served by airport facilities and services that are conveniently accessible to the city and to neighboring cities, municipalities and provinces. Key officials and the stakeholders raised the following issues and concerns regarding the airports in these cities. Cagayan de Oro City, Iloilo City and Tagbilaran City: The airports in these cities are part of five bundled regional airports which the Department of Transportation (DOTr) intends to offer for public-private partnership (PPP) implementation. The city governments and stakeholders in the respective cities lack information on the scope, timing and status of these bundled airport projects, making planning difficult. Puerto Princesa City: In relation to the airport expansion project which is due for completion during the first quarter of 2017, the following concerns were raised: (1) exclusion of four units or air bridges (passenger tubes); (2) the airport access road should match the elevation and geometric transition with the existing national highway; (3) transparency in the bidding and award of concessionaires at the new passenger terminal. Zamboanga City: The DOTr has not acted on the proposed new Zamboanga Airport Development Project’s new site which has been delayed despite its updated project feasibility study and master plan. Since DOTr has neither staff nor local presence in the city, the city government needs to be advised on DOTr’s plans in expediting the execution of activities related to the airport. The plans for a new airport has also fueled speculative increases in land prices, which stakeholders in the city would like the city government to quell. Sea Transportation Connectivity Seaport facilities and services are conveniently accessible to the city and to neighboring cities, municipalities and provinces. Of the CDI city seaports, Batangas Port has the most number of USAID Strengthening Urban Resilience