2015 SONA Technical Report

THE 2015 STATE OF THE NATION ADDRESS
TECHNICAL REPORT
Prepared by:
The Office of the President of the Philippines
TABLE OF CONTENTS
TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE
1. Institutionalized Public Accountability .............................................................. 1
2. Upheld Transparency and Citizen Engagement in Government .................... 11
RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH
1. Sustained Strong and Broad-Based Economic Growth ................................. 14
2. Increased Opportunities for Employment and Economic Activity .................. 24
POVERTY REDUCTION AND EMPOWERMENT OF THE POOR AND
VULNERABLE
1. Invested in the Filipino Workforce for Decent and Productive Work .............. 44
2. Sustained Equitable Access to Affordable and Quality Health Care .............. 50
3. Empowered the Poor and Marginalized towards Self-Reliance ..................... 56
JUST AND LASTING PEACE AND THE RULE OF LAW
1. Protected our National Territory and Boundaries........................................... 61
2. Ensured Public Order and Safety .................................................................. 64
3. Pursued Efforts for Peace and Development in Mindanao ............................ 68
4. Advanced and Protected Human Rights ........................................................ 71
5. Reformed the Justice Sector ......................................................................... 76
INTEGRITY OF THE ENVIRONMENT AND CLIMATE CHANGE ADAPTATION
AND MITIGATION
1. Ensured the Conservation and Protection of Natural Resources................... 77
2. Improved Adaptive Capacities of Communities ............................................. 79
3. Pursued Building Disaster Resilient Communities ......................................... 83
ANNEX: SELECT INFRASTRUCTURE PROJECTS UNDER THE AQUINO
ADMINISTRATION
A. Completed and Ongoing Long-Delayed Projects
B. High Standard Highway Network
C. Airport Development Projects
D. Sea Port Projects
E. Mass Transit Systems
F. Flood Control Projects
G. HFEP-Funded Health Facilities
H. Major Hospitals for Modernization
LIST OF TABLES
Table 1: Ranking per International Third Party Reports ............................................................................... 1
Table 2: Bottom-Up Budgeting (20132015) .............................................................................................. 11
Table 3: Household Consumption, Investment, and Manufacturing Growth and Share to GDP ................ 15
Table 4: Fiscal Performance ....................................................................................................................... 16
Table 5: IT-BPM Industry ............................................................................................................................ 22
Table 6: Infrastructure Budget as Percent of GDP ..................................................................................... 24
Table 7: Solicited PPP Projects per Administration .................................................................................... 25
Table 8: Select Tourism Road Projects ...................................................................................................... 30
Table 9: Selected Tourism Indicators ......................................................................................................... 31
Table 10: PH Tourism Accolades ............................................................................................................... 32
Table 11: Priority Irrigation Projects ............................................................................................................ 34
Table 12: Status of APTC Projects ............................................................................................................. 36
Table 13: Select Operational and Incoming Power Projects ...................................................................... 40
Table 14: Water Security Legacy Program Status ...................................................................................... 42
Table 15: Number of Out-of-School Children aged 515 in the Philippines ............................................... 46
Table 16: PhilHealth Benefit Packages ....................................................................................................... 52
Table 17: Final Findings of the 2014 Impact Evaluation of Pantawid Pamilya ........................................... 58
Table 18: Fund Releases for the AFPM/CUP ............................................................................................. 62
Table 19: Completed AFPM/CUP Projects (July 2010July 2015)............................................................. 63
Table 20: Ongoing AFPM/CUP Projects ..................................................................................................... 63
Table 21: Select Projects Under the PNP Capability Enhancement Program ............................................ 65
Table 22: National Crime Situation ............................................................................................................. 66
Table 23: Status of the AFP/PNP Housing Program .................................................................................. 67
Table 24: Infrastructure Funding for Mindanao ........................................................................................... 71
Table 25: Select Economic Indicators in ARMM ......................................................................................... 71
Table 26: Unemployment Rates (20102014) ............................................................................................ 74
Table 27: Other Assistance to OFs ............................................................................................................. 74
LIST OF FIGURES
Figure 1: Budget Distribution per Sector (20052015) ................................................................................. 2
Figure 2: Tax Effort (20102014) .................................................................................................................. 4
Figure 3: Dividend Contribution to Non-Tax Revenues (20012014) ........................................................... 7
Figure 4: Compliance by Government Agencies with Good Governance Conditions (20122014)............. 9
Figure 5: Economic Growth......................................................................................................................... 14
Figure 6: Year-on-Year Inflation .................................................................................................................. 15
Figure 7: Debt-to-GDP Ratio ....................................................................................................................... 17
Figure 8: Interest Payments and NG Total Debt Service as a Percentage of Expenditure ........................ 17
Figure 9: Credit Rating History .................................................................................................................... 18
Figure 10: PSEi Record Highs .................................................................................................................... 19
Figure 11: Net FDI ....................................................................................................................................... 20
Figure 12: Share of PEZA-approved Investments per Administration ........................................................ 21
Figure 13: Share of BOI-approved Investments per Administration ........................................................... 21
Figure 14: International Tourist Arrivals ...................................................................................................... 31
Figure 15: Annual Palay Production (20012014) ...................................................................................... 33
Figure 16: Social Services Budget (20102015) ........................................................................................ 43
Figure 17: Social Pension Beneficiaries and Pensions Released .............................................................. 59
Figure 18: Budget Allocation for ARMM (20082015) ................................................................................ 70
Figure 19: Decreasing Number of OFs (20102014) ................................................................................. 73
Figure 20: Area Reforested (19862015) ................................................................................................... 78
LIST OF ACRONYMS
5Rs
ACEL
ACR
ADB
ADMATEL
AEC
AFP
AFPM/CUP
ALS
APTC
ARBs
ARGs
ARMM
ASEAN
AWS
AY
BBL
BFAR
BFP
BHS
BIR
BJMP
BLGF
BOC
BOI
BOT
BPLS
BSP
BUB
BuCor
CAAP
CAB
CALAX
CARP
CARS Program
CBLA
CCAM
CCTV
CFW
CHED
CIRS
CLF
CNN
CNS/ATM
COA
COC
CRRP
CSC
CSE
CSO
DA
DAR
DBM
Right project, Right cost, Right quality, Right people, and Right-on-time project
implementation
Association of Carriers and Equipment Lessors
All Case Rates
Asian Development Bank
Advanced Device and Materials Testing Laboratory
ASEAN Economic Community
Armed Forces of the Philippines
AFP Modernization and Capability Upgrade Program
Alternative Learning System
Agri-Pinoy Trading Center
Agrarian Reform Beneficiaries
Automated Rain Gauges
Autonomous Region in Muslim Mindanao
Association of Southeast Asian Nations
Automated Weather Station
Academic Year
Bangsamoro Basic Law
Bureau of Fisheries and Aquatic Resources
Bureau of Fire Protection
Barangay Health Station
Bureau of Internal Revenue
Bureau of Jail Management and Penology
Bureau of Local Government Finance
Bureau of Customs
Board of Investments
Build-Operate-Transfer
Business Permits and Licensing System
Bangko Sentral ng Pilipinas
Bottom-Up Budgeting
Bureau of Corrections
Civil Aviation Authority of the Philippines
Comprehensive Agreement on the Bangsamoro
CaviteLaguna Expressway
Comprehensive Agrarian Reform Program
Comprehensive Automotive Resurgence Strategy Program
Cash for Building Livelihood Assets
Climate Change Adaptation and Mitigation
Closed Circuit Television
Cash-for-Work
Commission on Higher Education
Crime Incident Recording System
Contingent Liability Fund
CPPNPANDF /
Communist Party of the PhilippinesNew Peoples ArmyNational Democratic
Front
Communications, Navigation, Surveillance/Air Traffic Management
Commission on Audit
Code of Conduct in the South China Sea
Comprehensive Rehabilitation and Recovery Plan
Civil Service Commission
Crime Solution Efficiency
Civil Society Organization
Department of Agriculture
Department of Agrarian Reform
Department of Budget and Management
DENR
DepEd
DILG
DND
DOC
DOE
DOF
DOH
DOJ
DOLE
DOST
DOT
DOTC
DPWH
DRR
DRRM
DSWD
DTI
e-CAR
ECCT
EITI
EMSA
EO
ESA
EU
EU GSP+
FDI
FDP
FIR
FishR
FIU
FMR
FRIMP-CTI
FY
GAA
GAARD
GCG
GDP
GEC
GMMA
GOCC
GPH
GSIS
HEIs
HFEP
HOMA
HSH
IBPAP
ICAO
ILO
IMF
IRR
IT-BPM
IUUF
JHS
JSCC
Department of Environment and Natural Resources

Department of Education
Department of the Interior and Local Government
Department of National Defense
Declaration on the Conduct of Parties in the South China Sea
Department of Energy
Department of Finance
Department of Health
Department of Justice
Department of Labor and Employment
Department of Science and Technology
Department of Tourism
Department of Transportation and Communication
Department of Public Works and Highways
Disaster Risk Reduction
Disaster Risk Reduction and Management
Department of Social Welfare and Development
Department of Trade and Industry
Electronic Certificate Authorizing Registration
Expanded Conditional Cash Transfer
Extractive Industries Transparency Initiative
European Maritime Safety Agency
Executive Order
Emergency Shelter Assistance Program
European Union
European Union Generalised Scheme of Preferences Plus
Foreign Direct Investment
Full Disclosure Policy
Fiscal Incentives Rationalization
Fisherfolk Registration System
Fiscal Intelligence Unit
Farm-to-Market Road
Flood Risk Management Project for Cagayan River, Tagoloan River in Misamis
Oriental, and Imus Rive
Fiscal Year
General Appropriations Act
GAA-as-Release-Document
Governance Commission for GOCCs
Gross Domestic Product
General Education Curriculum
Greater Metro Manila Area
Government-Owned and/or Controlled Corporations
Government of the Philippines
Government Service Insurance System
Higher Education Institutions
Health Facilities Enhancement Program
Home Materials Assistance
High Standard Highway
Information Technology and Business Process Association of the Philippines
International Civil Aviation Organization
International Labour Organization
International Monetary Fund
Implementing Rules and Regulations
Information Technology-Business Process Management
Illegal, Unreported, and Unregulated Fishing
Junior High School
Justice Sector Coordinating Council
KAANIB
KALAHI-CIDSS
KEDP
LAD
LDRRMCs
LGU
LiDAR
LLEDP
LM
LPRAP
LRA
LRT
MARINA
MCP
MCX
MDG
MHEI
MICC
MILF
MLC
MLD
MMS
MNLF
MOA
MRAI
MRT
MSMEs
MT
MWPs
MWSS
NAIA
NBB
NBI
NCDDP
NCR
NDRRMC
NEA
NEDA
NGAs
NGOs
NGP
NHA
NHTS-PR
NIPAS
NLEX
NOAH
NPA
NPS
NQSS
NSRP
NTC
O&M
OCD
ODA
OFs
OFW
Kasaganaan sa Niyugan ay Kaunlaran ng Bayan

Kapit-Bisig Laban sa Kahirapan Program-Comprehensive and Integrated Delivery
of Social Services
KAANIB - Enterprise Development Project
Land Acquisition and Distribution
Local Disaster Risk Reduction and Management Councils
Local Government Unit
Light Detection and Ranging
Laguna Lakeshore Expressway-Dike Project
Lineal Meter
Local Poverty Reduction Action Plan
Land Registration Authority
Light Rail Transit
Maritime Industry Authority
Maternity Care Package
Muntinlupa-Cavite Expressway
Millennium Development Goals
Maritime Higher Education Institution
Mining Industry Coordinating Council
Moro Islamic Liberation Front
Management-Level Course
Million Liters per Day
Metro Manila Skyway
Moro National Liberation Front
Memorandum of Agreement
Minimum Required Annual Inspection
Metro Rail Transit
Micro, Small, and Medium Enterprises
Metric Tons
Most Wanted Persons
Metropolitan Waterworks and Sewerage System
Ninoy Aquino International Airport
No Balance Billing
National Bureau of Investigation
National Community-Driven Development Project
National Capital Region
National Disaster Risk Reduction and Management Council
National Electrification Administration
National Economic and Development Authority
National Government Agencies
Non-Governmental Organizations
National Greening Program
National Housing Authority
National Household Targeting System for Poverty Reduction
National Integrated Protected Areas System
North Luzon Expressway
Nationwide Operational Assessment of Hazards
New Peoples Army
National Payroll System
National Quality Standards System
NorthSouth Railway Project
National Telecommunications Commission
Operations and Maintenance
Office of Civil Defense
Official Development Assistance
Overseas Filipinos
Overseas Filipino Worker
OGP
OMB
OSYs
PA
PAF
PAGASA
Pag-IBIG (HDMF)
PAMANA Program
PBB
PBR
PCF
PCG
PCW
PD
PDAF
PDEA
PDRA
PEI
PES
PEZA
PHIC/PhilHealth
PhilGEPS
PHIVOLCS
PIDS
PN
PNP
POC
POEA
PPP
PQF
PSEi
PWDs
RA
RATE
RATS
RE
RHUs
RIPS
RS4LG
SEC
SEnA
SEP
SFDRR
SGH
SGLG
SGP-PA
SHS
SLEX
SLP
SMP
SSC
SSF
SSS
STAR
STAR Program
STCW
Open Government Partnership

Office of the Ombudsman
Out-of-School Youth
Philippine Army
Philippine Air Force
Philippine Atmospheric Geophysical and Astronomical Services Administration
Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno (Home
Development Mutual Fund)
Payapa at Masaganang Pamayanan Program
Performance-Based Bonus
Philippine Business Registry
Performance Challenge Fund
Philippine Coast Guard
Philippine Commission on Women
Peritoneal Dialysis
Priority Development Assistance Fund
Philippine Drug Enforcement Agency
Pre-Disaster Risk Assessment
Productivity Enhancement Incentive
Performance Evaluation System
Philippine Economic Zone Authority
Philippine Health Insurance Corporation
Philippine Government Electronic Procurement System
Philippine Institute of Volcanology and Seismology
Philippine Institute for Development Studies
Philippine Navy
Philippine National Police
Point of Care
Philippine Overseas Employment Administration
Public-Private Partnership
Philippine Qualifications Framework
Philippine Stock Exchange Composite Index
Persons with Disabilities
Republic Act
Run After Tax Evaders
Run After the Smugglers
Renewable Energy
Rural Health Units
Revenue Integrity Protection Service
Regulatory Simplification for Local Governments
Securities and Exchange Commission
Single Entry Approach
Sitio Electrification Program
Sendai Framework for Disaster Risk Reduction
Seal of Good Housekeeping
Seal of Good Local Governance
Students Grants-in-Aid Program for Poverty Alleviation
Senior High School
South Luzon Expressway
Sustainable Livelihood Program
Service Management Program
Significant Safety Concerns
Shared Service Facilities
Social Security System
Southern Tagalog Arterial Road
Store Training and Access to Resources Program
Standards of Training, Certification, and Watchkeeping
SUCs
SY
TB-DOTS
TESDA
TIP
TPLEX
TSeKaP
TVET
TWSP
UAE
UHC
UHCs
UN
UNICEF
UPRIIS
US
US-FAA
VOM Project
WEF
WELL
WHEC
WLMS
Z3R
State Universities and Colleges

School Year
Tuberculosis Directly Observed Treatment Short Course
Technical Education and Skills Development Authority
Trafficking in Persons
TarlacPangasinanLa Union Expressway
Tamang Serbisyo para sa Kalusugan ng Pamilya
Technical Vocational Education and Training
Training for Work Scholarship Program
United Arab Emirates
Universal Health Care
Urban Health Centers
United Nations
United Nations Children's Fund
Upper Pampanga River Integrated Irrigation Systems
United States
US Federal Aviation Administration
Valenzuela-Obando-Meycauayan Project
World Economic Forum
Welfare, Employment, Livelihood, and Legal
Weather High Endurance Cutter
Water Level Monitoring System
Zamboanga City Roadmap to Recovery and Reconstruction
THE AQUINO LEGACY OF GOOD GOVERNANCE

When we assumed office in 2010, the country had been beleaguered by massive
corruption that slowed down economic and social progress to the detriment of the people.
We were known as the Sick Man of Asia, where our government had become unreliable,
where economic growth was felt by a privileged few, where very few jobs were created,
and where Filipinos were forced to take their chances in other countries.
It is in this context that we forged a social contract with the Filipino people, a sixteen-point
agenda that lays down the vision of the Aquino Administration in five priority areas of
developmentgood governance, economic development, poverty reduction, peace and
security, and climate change adaptation. Guided by Daang Matuwid, we aspired to
transform our government from one that is self-serving to one that works for the welfare
of the nationthat through honest and effective governance, we will be able to achieve
inclusive growth, where Filipinos will be lifted from poverty and where no one will be left
behind. Kung walang corrupt, walang mahirap.
To this end, we put in place significant reforms in the bureaucracy that restored the
publics trust in our institutions and that created a climate of confidence and optimism.
Economic growth veered away from a boom-and-bust performance cycle, allowing us to
maximize the gains of our economic dividends. This allowed us to intensify our efforts to
empower the poor and marginalized, to promote equitable access to affordable and
quality health care, to capacitate our citizens to become a competent workforce, and to
enhance their access to decent and quality work.
We also took decisive steps toward attaining lasting peace and development in Mindanao
and ensuring our territorial integrity. We likewise recognized the need to protect the
environment and strengthen the resiliency of our people and communities from the effects
of climate change.
While we traveled far on the right path these past years and end this term with the country
better than we found it, leaving behind irreversible reforms that shall sustain the gains of
good governance, we recognize that we have only set the wheels of inclusive growth in
motion. We hope that, to truly cement a better future for generations to come, Filipinos
continue to demand nothing less but genuine public service from our future leaders who
shall continue our legacy of good governance.
TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE

To address longstanding problems in the bureaucracy and to regain the peoples trust in
government, the Aquino Administration institutionalized significant reforms in the
bureaucracy anchored on accountability, transparency, and participatory governance.
These helped to curb corruption, improve the delivery of public services, and enhance
the business and economic environment.
1. Institutionalized Public Accountability
In pursuit of its commitment to uphold the highest ethical standards in government
and its obligation to deliver genuine public service, the Administration instituted
reforms to strengthen accountability in the government by improving its processes
and mechanisms and by relentlessly pursuing those who betrayed public trust for
personal gain.
These efforts led to the countrys improved rankings in various international third
party reports.
Table 1: Ranking per International Third Party Reports
Third Party Report
2010
Transparency International Corruption Perceptions Index
134
World Bank Ease of Doing Business
144
World Economic Forum (WEF) Global Competitiveness Index
85
20142015
Basic Requirements Sub-Index
Pillar 1: Institutions
125
Pillar 2: Infrastructure
104
The Heritage Foundation Economic Freedom Index
109
Sub-Category
Freedom from Corruption
143
Sources: DBM, Transparency International, and The Heritage Foundation
Latest
85 (2014)
95 (2015)
52 (2014)
Change
+49
+49
+33
67
91
76 (2015)
+58
+13
+33
95 (2015)
+48
Reformed the Budget Process

By plugging budget process leakages and improving resource utilization, we
increased allocations for inclusive development programs. These programs focus on
social protection and services, economic expansion and job creation, and climate
change adaptation and mitigation.
The 2015 SONA Technical Report
Page 1 of 88
Figure 1: Budget Distribution per Sector (20052015)

37%
37%
26%
26%
27%
2013
2014
2015
36%
34%
32%
27%
27%
28%
28%
27%
29%
28%
28%
27%
26%
25%
23%
21%
18%
2005
2006
2007
2008
2009
Social Services
2010
2011
2012
Economic Services
Source: DBM
Through the Zero-Based Budgeting Approach, government programs and projects

were evaluated to ensure the efficient use of public funds. This resulted in the
termination of programs that are no longer delivering expected outcomes.
Beginning 2014, through the Performance-Informed Budgeting approach, the
National Budget has presented the goods and services each agency commits to
deliver alongside their budget. This ensures transparency and accountability in the
budget process, enabling the public to better appreciate and monitor government
agencies spending.
With the early budget call as part of budget reform, the government consistently
passed the National Budget for the fiscal years 2011 to 2015 on time, a marked
departure from delayed and reenacted budgets of the past. By avoiding budget reenactment, the government ensures transparency and limits the discretion of the
Executive in using public funds. Also, through the GAA-as-Release-Document
(GAARD) policy implemented since 2014, funds have been made available to
agencies at the start of the fiscal year. Thus, on the first day of 2014 and 2015, 62
percent (P1.408 trillion) and 78 percent (P2.037 trillion), respectively, of the National
Budget had been released.
Intensified the Fight against Graft and Corruption
The government ensured that erring government officials are held accountable by
pursuing plunder and graft cases against them, including a former president, as well
as three senators implicated in the alleged Priority Development Assistance Fund
(PDAF) misuse. A former Chief Justice was impeached by the House of
Representatives and convicted by the Senate for betrayal of public trust and culpable
violation of the Constitution, while a former Ombudsman resigned from her post after
the Congress voted to impeach her for alleged betrayal of public trust.
Page 2 of 88
Since July 2010, a total of 710 cases have been filed against tax evaders, smugglers,
and erring government officials and employees:
Under the Run After Tax Evaders (RATE), a total of 380 tax evasion cases were
filed before the DOJ and courts, with total tax liability of P68.52 billion. The cases
include those against a former Chief Justice and a former member of the House
of Representatives.
Under the Run After the Smugglers (RATS), a total of 201 smuggling cases were
filed before the courts, with total duties and taxes of P26.02 billion. Cases include
those filed against personalities for the smuggling of steel bars, sugar, various
medicine, and rice, among others.
Under the Revenue Integrity Protection Service (RIPS), a total of 84 cases were
filed before the Ombudsman against erring revenue personnel, while 41 cases
were filed before the Civil Service Commission, and 4 cases were endorsed to
the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) for the
filing of formal charges. A total of 383 personalities were investigated, 136 were
charged, 15 were dismissed from service, 2 had their benefits forfeited, 4 were
fined, 16 were suspended, 2 were reprimanded, 4 were criminally fined, and 1
was imprisoned.
Aside from pursuing corruption cases, the government is also pushing for a law to
curtail the perpetuation in public office of political families, which discourages more
Filipinos from taking part in political and economic processes. This is to help ensure
a level playing field where a culture of accountability and integrity flourishes in place
of nepotism and patronage.
The government also focused on reforming institutions that had long been considered
breeding grounds of corrupt public servants.
With the slogan Uproot Corruption, Reboot Customs, the BOC Reform Project aims
to jumpstart a virtuous cycle of integrity and genuine public service in the agency.
Aside from appointing new Deputy Customs Commissioners, the BOC issued a callto-mother-unit order so that personnel previously reassigned to other units for
dubious reasons return to their original work stations and perform functions according
to the stated duties and responsibilities of their positions. The post-entry audit
functions1 of the BOC were also transferred to the DOF Fiscal Intelligence Unit (FIU)
to provide a check in the transactions of the BOC. Thus far, the Commissioner of
Customs, upon the FIU's final audit reports and recommendations, has issued
collection notices to 23 importers of resins, iron, and steel, where estimated
deficiency duties and taxes to be levied amount to P2 billion. The Bureau also
published in its website the import duty reports to inform the public of the correct
Conduct of audit examination, inspection, verification or investigation in accordance with the set policies,
guidelines, manuals, and standard operating procedures of commodities that entered the ports
Page 3 of 88
duties and taxes they should pay, as well as the masterlist of regulated imports for
easy reference of appraisers, examiners, and import entities.
To help reduce customs fraud and smuggling, the BOC sped the inspection of
incoming cargo and facilitated the detection of erroneously labeled goods by installing
x-ray machines in key entry ports in the country (e.g., Ninoy Aquino International
Airport and the Manila International Container Port). For 2014, this initiative
generated P30.47 million in additional revenues from the proper payment of
undervalued goods, while for the period January to July 2015, it generated P32.86
million in additional revenues.
To further promote transparency, the DOF, with its attached bureaus, the BOC, the
BIR, and the Bureau of Local Government Finance (BLGF), launched the Tax Watch
campaign in 2012. Through this campaign, tax information on key products and tax
compliance of corporations and professionals were made public through television
commercials, newspaper advertisements, and the Pera ng Bayan website
(www.perangbayan.com). Other campaign programs are the Register, File, and Pay,2
Angat Pa, Pinas,3 and Customs ng Bayan (www.dof.gov.ph/customsngbayan).4
The anti-corruption and transparency efforts in revenue agencies contributed to an
improved tax effort,5 from 12.1 percent in 2010 to 13.6 percent in 2014, or a P156.6billion average annual increase in tax collections for the said period. This was
achieved without imposing new taxes, except the reforms in the Sin Tax Law.
Percent
Figure 2: Tax Effort (20102014)

16.0
15.0
14.0
13.0
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Tax Effort
BOC
BIR
Target, Tax Effort
2010
12.1
2.9
9.1
13.9
2011
12.4
2.7
9.5
13.1
2012
12.9
2.7
10.0
13.3
2013
13.3
2.6
10.5
13.5
2014
13.6
2.9
10.6
14.7
Source: DOF
A tax awareness campaign launched in 2014 with the theme, I Love the Philippines, I Pay my Taxes Right. Its
as Easy as Register, File & Pay.
Launched in February 2015, it calls for greater cooperation among Filipinos to pay their taxes as their contribution
to nation-building.
A web portal of data and information on customs importation, which also features regular updates on trade activity
in each of the 17 main collection districts of customs and reports on certain sensitive commodities, such as motor
vehicle and rice
The total tax collection as a percentage of GDP
Page 4 of 88
From its highest recorded revenue in the previous administration of P778.58 billion
in 2008, the BIR collected P1.058 trillion in 2012, the first time in history that the
agency breached the trillion-peso mark. Subsequent years collections were also
above P1 trillionP1.216 trillion in 2013 and P1.334 trillion in 2014. The target
collection for 2015 is P1.674 trillion. The BOC collection, meanwhile, was able to
grow by 21.1 percent year-on-year in 2014 versus 5.2 percent before the President's
Customs Reform Program was launched in late 2013.
To eliminate distortions in the countrys tax structure, which takes away billions of
pesos that could be used to improve the countrys fiscal position and fund social
services, the government is pursuing the passage of the Fiscal Incentives
Rationalization (FIR) Act. The bill, currently pending before Congress, aims to provide
a uniform and time-bound set of tax incentives to be offered by all investment
promotion agencies, and repeal special laws with provisions on tax incentives for
specific sectors or industries that are irrelevant.6 Moreover, no incentives shall be
automatically granted. Tax incentives cost the government at least 1.5 percent of
GDP in 2011, or around P144.301 billion. Noting this, the IMF deemed the current
Philippine incentives regime "very generous" and "unnecessarily complex."
Rationalizing and harmonizing major investment incentives laws will level the investor
playing field, create tighter tax administration, and promote competition based on
transparent and uniform tax regimes of investment promotion agencies.
Together with the FIR, the Tax Incentives Management and Transparency Act is also
pending before Congress and is being pursued to promote transparency and
accountability in granting tax incentives to business entities, private individuals, and
corporations.
Congruent with the governments goal to effectively deliver public service, the DPWH
continues to implement the 5Rs (right projects, right cost, right quality, right people,
and right-on-time project implementation) approach in identifying and procuring
projects. Through this approach, the number of bidding requirements was reduced
from 20 to 5 documents, collusion among bidders was curbed by removing the
requirement to submit a Letter of Intent, and the electronic bidding (e-bidding) system
was piloted in its Central Office.
Through these reforms, the government benefited from increased competition among
bidders. It enabled the DPWH to save P48.55 billion from July 2010 to May 2015,
which was used to fund additional roads, bridges, and flood control and disasterrelated rehabilitation projects.
The government also introduced sweeping reforms in the government corporate
sector to check past excesses and financial mismanagement. In 2011, the President
signed into law the GOCC Governance Act (RA 10149), which created the
Governance Commission for GOCCs (GCG), an oversight and policy-making body
for GOCCs.
Tax incentive positions refer to tax breaks given to qualified investment projects.
Page 5 of 88
Under the GCGs oversight, reforms were implemented toward professionalizing

board governance. In 2012, the GCG adopted the Fit and Proper Rule, which set the
standards of integrity, experience, and education, among others, to determine
whether an individual is qualified to be a Board Director and/or a Chief Executive
Officer.
GOCC boards also stopped granting allowances and bonuses without obtaining the
proper approval from the Office of the President. Compensation in GOCCs also
shifted toward promoting performance-driven organizations. In 2013, the GCG
started implementing the Performance Evaluation System, which uses Performance
Scorecards of every GOCC as basis for granting the Performance-Based Bonus to
officers and employees and the Performance-Based Incentives to appointive
directors.7
The GCG also rationalized the government corporate sector, reducing the number of
GOCCs from 140 in 2011 to 102 as of June 2015 through abolition, privatization, and
deactivation of poor- or non-performing GOCCs.
These efforts yielded concrete results. Total GOCC dividends remitted from July
2010 to June 2015 amounted to P131.86 billion, 8 higher than the P127.51 billion total
collections from 1995 (when RA 7656 or the Dividends Law was first implemented)
until June 2010.9 The overall profitability of the entire GOCC Sector (which includes
GOCCs that are prohibited from remitting dividends such as SSS and GSIS) has also
improved as its revenues increased from P641.46 billion in 2010 to P908.73 billion in
2014.10
Government efforts to reform the sector also resulted in the almost doubling of
dividend contribution to non-tax revenues, from an average of 7.57 percent during
the previous administration to 13.59 percent during this Administration.11 This allowed
the government corporate sector to significantly contribute to the overall government
revenue effort.
8
9
10
11
The GOCCs that garnered a score of 90 percent or more in the Performance Scorecard passed the GCGs
evaluation and were therefore authorized to receive the Performance-Based Bonus. Moreover, only the Boards
of the GOCCs that successfully passed the evaluation were eligible to apply for the Performance-Based
Incentives.
This is higher than the P84.18 billion collections from January 2001 to June 2010.
While RA 7656 was enacted in 1993, the IRR was issued in 1994 and took effect for 1994 net income (1995
dividend remittance). However, values included in the total collections cited here are from 1995 to June 2010,
since the 1994 remittance was still governed by EO No. 399, s. 1990 (Increasing the Rate of Cash Dividends to
be Declared by Government Owned or Controlled Corporations Subject to Certain Exceptions).
GCG adopted the formula to net out subsidies and unrealized gains/losses beginning CY 2012.
Data as of end-December 2014
Page 6 of 88
Figure 3: Dividend Contribution to Non-Tax Revenues (20012014)

20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Percentage to Non-Tax Revenue
Arroyo (average)
Aquino (average)
Source: DOF
Institutionalized Good Governance Practices

Good governance practices were institutionalized in the LGUs by incentivizing good
performance. In 2011, the DILG started the Seal of Good Housekeeping (SGH), an
innovation intended to reward LGUs with exemplary performance in their internal
housekeeping, particularly in fiscal management. In January 2014, the SGH was
expanded and renamed the Seal of Good Local Governance (SGLG), which added
business-friendliness, disaster preparedness, social protection, and effective peace
and order policies in the assessment criteria.
LGUs conferred with either the SGH or the SGLG are eligible to receive assistance
from the Performance Challenge Fund (PCF) for projects related to local economic
development, disaster risk reduction and management, ecological solid waste
management, and the Millennium Development Goals. Since 2010, the PCF has
released to qualified LGUs12 P2.56 billion, which funded a total of 2,13513 local
development projects, such as the construction of public markets, drainage systems,
and transport terminals.
The PCF assistance is indicative of how LGUs good governance practices can be
translated to local economic development. For instance, through PCF, the
Municipality of Anilao in Iloilo was able to construct a Shrimp Paste Processing
Center, which contributed to an increase in the LGUs average monthly income by
700 percent, from P102,000 in 2011 to P816,000 in 2012.
12
13
Composed of 77 provinces, 141 cities, and 1,389 municipalities

Of these projects, 1,749 have been completed, while 386 are either ongoing or complying with administrative
requirements.
Page 7 of 88
As part of the SGH and SGLG, LGUs started disclosing in 2010 their respective
financial transactions through the Full Disclosure Policy (FDP), which requires the
posting of financial documents14 in conspicuous places15 and in the FDP Portal
(fdpp.blgs.gov.ph). At least 93 percent of LGUs nationwide complied with the FDP
from 2010 to 2014.16
Professionalized and Motivated the Civil Service
To reinforce meritocracy in the public sector and to improve the delivery of its
services, the government started implementing the Performance-Based Incentive
System in 2012, under which agencies are rewarded with a top-up PerformanceBased Bonus (PBB). Agencies are recognized and rewarded with the PBB based on
their accomplishment of their overall commitments and targets, and their compliance
with the following good governance conditions:17
Disclosure of financial transactions, budget utilization, and project and program

implementation, among others, in their respective websites for public scrutiny
through the Transparency Seal, in contrast to discretionary disclosure prior to
2010;
Posting of the Citizens Charter, as mandated by the Anti-Red Tape Act (RA
9485), which lists down the details of frontline services offered by an agency, such
as step-by-step procedures, required documents, fees, processing time, and
person/s responsible to improve services; and
Posting of bidding in the Philippine Government Electronic Procurement System

(PhilGEPS)18 (philgeps.gov.ph) for government agencies requirements, such as
goods and consulting services to civil works, to ensure transparency in
government procurement, as well as quicker and more efficient delivery of public
goods and services.
The expanded coverage19 of and increased use20 of the PhilGEPS online portal
increased the governments cost savings from P29.93 million in 2010 to P65.17
million in 2014 on newspaper advertisements alone. From 2004 (a year after RA
9184 was passed) to June 2010, the annual average amount of awarded
14
15
16
17
18
19
20
Include annual budget report, annual procurement plan/list, statements of receipts and expenditures, quarterly
statement of cash flows, and the Internal Revenue Allotment utilization
In 2012, additional requirements for SGH were included, such as a) excellent or good performance rating in the
Anti-Red Tape Act Report Card Survey of the CSC; and b) compliance with RA 8551 (Government Procurement
Act).
ARMM FDP implementation only began in 2012; hence, the universe for FDP in 2010 and 2011 only totals 1,591,
while universe for FDP from 2012 to 2014 is 1,714.
In 2013, the Statement of Assets, Liabilities, and Net Worth (SALN) was included as among the good governance
conditions. However, for the 2015 PBB, the SALN will only be used as a basis if a personnel from a qualified
agency is eligible to receive the bonus.
As required by the 2003 Government Procurement Reform Act (RA 9184)
Including Virtual Store transactions and electronic functionalities (e.g., e-bidding, automatic bid notification,
electronic payment of fees and purchase of bid documents)
From an annual average of 152,684 notices posted from 2004 to June 2010, posting increased to an annual
average of 389,927 from July 2010 to June 2015.
Page 8 of 88
contracts that went through PhilGEPS was only P41.14 billion. It increased to an
annual average of P274.49 billion from July 2010 to June 2015.
Figure 4: Compliance by Government Agencies with Good Governance Conditions (20122014)
120%
100%
88%
94% 98%
98%
90%
87% 89%
95%
99%
94% 96%
79%
80%
60%
40%
20%
0%
Overall
Transparency Seal
2012 2013
Note: The Transparency Seal was only implemented in 2011.
PhilGEPS
ARTA (Citizen's Charter)
2014
Source: DBM
Aside from noting the high compliance with governance standards, a 2014 World
Bank study on the PBB implementation21 affirmed that it improved management
practices in government offices. The study showed that PBB encouraged managers
to foster teamwork, become more diligent in setting performance targets and in
monitoring accomplishments, and work on building trust within the unit.22
To further motivate employees to be more productive, on 15 May 2015, the President
approved23 the release of the Productivity Enhancement Incentive (PEI) to
government personnel of agencies that have exceeded financial and operational
targets for the year.24 The incentive was allotted a total of P30.6 billion from the
National Budget, of which P27.2 billion has been released to 59 agencies as of 09
July 2015.
Enhanced Frontline and Regulatory Processes
The government simplified start-up business processes to help ease doing business
in the country. Philippine Business Registry (PBR) kiosks or tellers were set up in 96
DTI regional and provincial offices and in 1025 other strategic locations, rendering
unnecessary the physical visits to different agencies to file business applications.
21
22
23
24
25
The study was conducted on 4,500 government officials in eight departments in FY 20132014.
World Bank, Philippines: Assessment of the Performance-Based Bonus Scheme, June 2014.
Through EO No. 181, otherwise known as the Implementation of the Provisions of the FY 2015
General Appropriations Act (GAA) on the Grant of the FY 2015 Productivity Enhancement Incentive (PEI) to
Government Employees
Incentive grant is from P5,000 or one month basic salary, subject to conditions, such as accomplishment of FY
2014 Performance Targets for at least one strategic Major Final Output and posting of the Transparency Seal
and Citizens Charter.
These are in: (1) Muntinlupa, (2) Batangas City, (3) Iloilo City, (4) Cagayan de Oro City, (5) Guimba, Nueva Ecija,
(6) Talavera, Nueva Ecija, (7) San Jose, Nueva Ecija, (8) Quezon City, (9) Valenzuela, and (10) Sta. Maria,
Bulacan.
Page 9 of 88
Processing of applications, which used to take four to five days, was reduced to 30
minutes. Since its inception in 2012, a total of 140,129 sole proprietors have benefited
from registration through the PBR.
In April 2015, the Securities and Exchange Commission (SEC) launched its ease of
doing business reforms, including the Integrated Business Registration System that
reduced the procedures from 16 to 6 steps, and shortened incorporation period from
34 to a maximum of 8 days. Incorporation at the SEC now includes registration with
Pag-IBIG, PhilHealth, and SSS in a single step. In May 2015 alone, the SEC was
able to process the application of 99.37 percent (1,572) of 1,582 corporations within
one business day. Of the 1,572 applications, 1,518 applications (96.56 percent) were
approved within eight hours, while 54 (3.44 percent) were approved within one
business day.
LGUs streamlined their Business Permits and Licensing Systems (BPLS) by
simplifying multiple forms for business application and renewal to one single form
with at most five approving signatories. This shortened the process from more than
ten steps to a maximum of five and reduced the processing time from one to three
months to one to three days. From June 2010 to March 2015, 83 percent or 1,363
(140 cities and 1,223 municipalities) out of the total 1,634 cities and municipalities
have streamlined their BPLS, while the remaining 271 target to complete streamlining
by December 2015.
To complement BPLS reform, the government launched the Regulatory Simplification
for Local Governments (RS4LG) Project. It provides standards not just for business
applications and renewals but also for costs/fees and processes for required
government applications across LGUs. From June 2013 to June 2015, 90 out of the
9326 targeted first class cities and municipalities nationwide have implemented the
RS4LG. Of these, 6527 (72 percent) completed their regulatory simplification work,
while 25 (28 percent) are in the process of completing the design of their reformed
business permit systems, targeted to be completed by December 2015.
To simplify the processes in registering a property, the BIR launched in May 2014 the
electronic certificate authorizing registration (e-CAR) to electronically issue and
validate certificates. The e-CAR initiative shortened the processing time from 14 days
to 5 to 10 days and addressed issues of under or lack of payment as well as forgery
of transfer certificates. In June 2015, the e-CAR system was linked with the Land
Registration Authority (LRA), enabling verification of all real property transfers with
BIR tax clearance certificates. As of July 2015, 271,787 e-CAR certificates have been
generated and uploaded in the LRA database for verification before the release of
titles.
26
27
The LGUs selected are among those with high business transactions registered and those first-class
municipalities that are capitals of their respective provinces.
Of these, 43 cities and municipalities have issued local executive orders to implement the reformed business
permitting system, while the remaining 22 are finalizing their respective local orders.
Page 10 of 88
2. Upheld Transparency and Citizen Engagement in Government

The Administration institutionalized transparency and citizen engagement in
government activities, making governance open, participatory, and responsive to
local needs.
Engaged the Public in Government Affairs
The government continued to involve civil society organizations (CSOs) in
determining needed services, particularly at the grassroots level, through the BottomUp Budgeting (BUB) Program, in place since 2013 to help pursue its poverty
alleviation agenda. A total of P49.34 billion has since been allotted for the Program
to implement 37,760 projects under the Local Poverty Reduction Action Plans of
LGUs developed through CSO consultations. For FY 2015, 14,300 identified projects
are being validated by various government agencies.28 Updates on BUB projects may
be accessed by the public through the BUB portal (www.openbub.gov.ph).
Table 2: Bottom-Up Budgeting (20132015)
No. of
No. of Participating
Year
Participating Cities
Municipalities
2013
56
539
2014
93
1,133
2015
136
1,454
Total
No. of Projects
6,062a
17,398b
14,300c
37,760c
Budget Allocation
(in P billion)
8.39
20.05
20.90
49.34
There was an increase in the number of projects in 2013 from 5,894 to 6,062 as, upon validation, some projects
were split.
b In 2014, there were 19,533 approved projects; however, after validation, the number decreased to 17,398
because some of the projects were merged or discontinued, or no validation reports were received from 230
Municipal Local Government Operation Offices.
Sources: DBM and DILG
In recognition of its efforts to deepen citizen involvement in the budget process, the
Philippines received the Gold Medal for the BUB during the inaugural Open
Government Partnership (OGP) Awards held on 24 September 2014 at the UN
Headquarters in New York City.
In addition, the government strengthened the Kapit-Bisig Laban sa KahirapanComprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) Project.
Poor communities are trained to design, implement, and manage local projects that
they themselves identified, strengthening their participation in local governance.29
From July 2010 to June 2015, 5,986 sub-projects30 (e.g., water systems, school
buildings, barangay health stations, access roads, drainage, and pre- and postharvest facilities) were completed, benefiting almost 1.3 million households.
28
29
30
Of the total 37,760 projects placed under the BUB Program since 2013, 5,731 have been completed, 3,788 are
ongoing, 8,670 are in the pipeline, and 19,571 are still under proposal.
Innovations for Poverty Action, Impact Evaluation of the KALAHI-CIDSS: Baseline Report, January 2014.
This comprises 5,098 completed out of 5,597 target sub-projects from July 2010 to 2014 and 888 completed out
of 7,623 target sub-projects for 2015.
Page 11 of 88
Based on the World Bank Impact Evaluation31 of the KALAHI-CIDSS, roadimprovement and livelihood projects reduced transportation and production costs,
and opened business and employment opportunities. As a result, per capita
consumption of poor households in KALAHI-CIDSS areas increased by about 12
percent. The study also showed that it had no impact on non-poor households,
indicating that KALAHI-CIDSS benefits are channeled to the poor and not captured
by the local elites.32
The success of KALAHI-CIDSS led to its expansion into the National CommunityDriven Development Project (NCDDP) in 2014, increasing community beneficiaries
from 48 poorest provinces to 58 provinces, comprising 847 municipalities,33 including
those affected by typhoon Yolanda. KALAHI-CIDSS NCDDP has a total allocation of
P43.9 billion from 2014 to 2019, of which P17.5 billion has been earmarked in 2015
to implement 13,415 sub-projects in 672 municipalities.
Enhanced Public Access to Government Information
The government further engaged the public in its programs and processes by
providing access to a wide range of documents and data via various government
websites. These websites only previously showed organizational objectives and
structure, regular reports and publications, now disclose the agencies approved
budgets, disbursements, and corresponding targetsa measure never undertaken
in past administrations.
The National Government Portal (www.gov.ph) is the online Official Gazette, which
is also the official journal of the Republic of the Philippines. It was launched in July
2010 as the premier platform for publishing official government documents,
statements, and public announcements, and as the institutional memory of the
Republic, in conjunction with the Presidential Museum and Library website
(www.malacanang.gov.ph).
The Open Data Portal (data.gov.ph), launched in January 2014, also provides access
to government information databases from various agencies, such as the National
Budget, government procurement, extractives and mining industries, and customs
collections. These can be viewed in simplified formats using infographics and other
applications.
Strengthened Control and Accountability in Government Operations
The establishment of the Treasury Single Account in 2013 enabled the government
to consolidate the bank accounts of NGAs and select GOCCs. This allowed the
government to better manage and monitor its funds and debt, facilitate more accurate
31
32
33
The study also noted concerns on sustaining empowerment and barangay governance impacts and effecting
improvements in municipal-level governance, among others.
World Bank 2013 Impact Evaluation of KALAHI-CIDSS using data collected in 2003, 2006, and 2010 in both
KALAHI-CIDSS and comparable non-KALAHI-CIDSS municipalities
Including 4th to 6th class municipalities with poverty incidence above the national average of 26.5 percent based
on the 2009 NSCB Small Area Estimates, and 1st to 3rd class municipalities with poverty incidence of 40 percent
and above. These do not include ARMM municipalities.
Page 12 of 88
accounting, and reduce transaction cost while increasing interest earned. It helped in
reducing borrowings caused by perceived cash shortages arising from holding
multiple government bank accounts and a fragmented system for handling receipts
and payments. The Account is being maintained at the Bangko Sentral ng Pilipinas.
In line with its efforts to increase transparency and reduce leakages, the government
piloted the Cashless Purchase Card System in the DBM and DND in 2014.34 The
scheme eliminated petty cash advances and payments during procurement and
recorded transactions in real-time on a secure web-based platform.
34
Phase I of the piloting in five AFP units concluded in October 2014, while the 2 nd and 3rd phase of the pilot-testing
in 2015 will include Major Services, Unified Commands, and Key Budgetary Units. The purchase cards are
currently being used in the DBM-Office of the Secretary and the Administrative Service in procuring goods, such
as office and construction supplies, and medicine.
Page 13 of 88
RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH

Sound macroeconomic policies combined with reforms in governance made the country
a viable investment destination. This resulted in the expansion of trade, increase in
investments, growth of industries, and creation of quality employment opportunities for
the people.
1. Sustained Strong and Broad-Based Economic Growth
Economic growth was sustained in the past five years, escaping the boom-and-bust
cycle that characterized it for decades. This is due to the Administrations prudent
fiscal and monetary policies anchored on sound management principles, along with
reforms in critical areas of governance.
The growth was not fueled by debt, as evidenced by the continuing decline in fiscal
deficit and debt as a percentage of GDP. It created more jobs as shown by the
improving employment figures and declining numbers of the unemployed. These
conditions led to an increased confidence from markets and businesses and
improvements in the countrys competitive rankings and credit ratings. These also led
to enhanced trade and increased investments, which will further sustain economic
growth.
Improved Growth Trajectory and Increased Market Confidence
Annual economic growth from 2010 to 2014 averaged 6.2 percent, the highest fiveyear average growth rate in nearly four decades. If GDP growth reaches at least 6.8
percent this year, average growth from 2010 to 2015 will be the highest six-year
average growth since 1958. The country was recognized as the second fastest
growing economy in 2015, next to China, out of the 57 countries surveyed by
Bloomberg.
Figure 5: Economic Growth
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q1
Q2
Q3
Q4
2001-2009 average
2010-2014 average
Source: PSA
Page 14 of 88
The countrys economic growth in the last five years transitioned from being
consumption-led to one that is increasingly driven by investments. Prior to 2010, the
economy relied on household consumption in driving growth, as investment growth
was close to zero. At present, with investor confidence restored, investments
emerged as a strong engine of growth, expanding by 12.7 percent on average over
the last five years. On the production side, the manufacturing sector is rapidly
catching up as a major driver of growth, next to the services sector.
Table 3: Household Consumption, Investment, and Manufacturing Growth and Share to GDP
Growth (in %)
Share to GDP (in %)
20052009
20102014
20052009
20102014
Household Consumption
3.8
5.3
72.3
69.7
Capital Formation (Investment)
0.4
12.7
18.0
20.8
Manufacturing
2.4
8.0
22.8
22.6
Source: NEDA
GDP per capita increased from P61,570 in 2010 to P71,726 in 2014, which shows
that on a per capita basis, income has increased as the economy grew faster.
Average annual inflation from 2010 to 2014 was 3.7 percent, within the target range
for each year during the period and lower than the 4.7 percent monthly average of
the previous Administration. In June 2015, inflation eased to 1.2 percent, the lowest
level in 20 years. A stable inflation environment makes it easier for investors to better
plan their investments and for households and businesses to make better-informed
decisions on their consumption, investment, savings, and production needs. It also
promotes income equality by preserving the purchasing power of the poor who often
do not have assets that allow them to hedge against inflation.
Figure 6: Year-on-Year Inflation (as of June 2015)
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Jan-10
Jan-11
Jan-12
Y-o-Y
Jan-13
Lower-End Target
Jan-14
Jan-15
Higher-End Target
Source: PSA
The country remains well positioned to deal with global uncertainties. Gross
international reserves, which serve as buffer against external shocks and risks,
increased by 65.6 percent from US$48.70 billion as of end-June 2010 to US$80.64
billion as of end-June 2015, enough to cover 10.6 months of imports of goods and
Page 15 of 88
payments of services and income.35 It is also equivalent to 6.1 times the countrys
short-term external debt based on original maturity.
The banking system supported the expansion of economic activity by providing
businesses with ample liquidity. The total loan portfolio of universal and commercial
banks was at P5 trillion in May 2015, almost double the P2.7 trillion in June 2010.
Moreover, the quality of lending improved as the non-performing loans36 ratio
declined to 1.9 percent as of end-May 2015 from 3.2 percent as of end-June 2010.
These developments resulted in the Philippines being recognized in the Moodys
Banking System Outlook as one of the only two countries, along with Spain, with a
positive overall banking system outlook out of 67 countries monitored,37 as of 23 July
2015. According to Moodys, the Philippines banking system is characterized by
improving operating environment, profitability, and efficiency; stable asset quality and
capital; and stable funding and liquidity.
The fiscal deficit was maintained under programmed ceilings despite governments
increased spending from 2010 to 2014.38 It declined from P314.5 billion or 3.5 percent
of GDP in 2010 to P73.1 billion or 0.6 percent of GDP in 2014.
Table 4: Fiscal Performance (in P billion)
2010
Programmed Deficit
325.0
Actual Deficit
314.5
Deficit as a percentage of GDP (%)
3.5
Expenditures
1,522.4
Revenues
1,207.9
BIR Tax Revenues
822.6
BOC Tax Revenues
259.2
Actual Obligations
1,473.0
GDP (nominal)
9,003.5
2011
300.0
197.8
2.0
1,557.7
1,359.9
924.1
265.1
1,580.0
9,708.3
2012
279.1
242.8
2.3
1,777.8
1,534.9
1,057.9
289.9
1,829.0
10,561.1
2013
238.0
164.1
1.4
1,880.2
1,716.1
1,216.7
304.9
1,998.4
11,542.3
2014
266.2
73.1
0.6
1,981.6
1,908.5
1,334.8
369.3
2,019.1
12,642.7
Note: Numbers may not add up due to rounding.
Source: BTr
As an illustration of prudent and effective management of liabilities, the government

was able to reduce the countrys national government debt-to-GDP ratio to its lowest
level of 45.4 percent in 2014 from 74.4 percent in 2004, the highest recorded debtto-GDP since 1986, indicating an improved capacity to pay its debt.
35
36
37
38
Based on the 2011 IMF paper on Assessing Reserve Adequacy, commonly used standards for estimating
optimal GIR include: 1) three months worth of imports of goods and payments of services and income and 2) 100
percent short-term debt for one year.
Refer to past due loan accounts where the principal and/or interest is unpaid for 30 days or more after due date.
Includes both developed (e.g., USA, UK, and Japan) and emerging (e.g., China, Indonesia, and Thailand) markets
Figures are based on actual spending.
Page 16 of 88
Interest Payments as % of Exp
16.2%
2014
13.1%
17.2%
2013
2016
17.6%
2012
14.1%
17.9%
19.3%
2010
2011
19.6%
2015
29.7%
31.1%
29.2%
23.3%
21.4%
2009
2008
2007
2006
2005
2004
27.0%
23.6%
2002
2003
24.5%
21.7%
18.0%
19.5%
16.6%
18.9%
20.8%
24.7%
2001
2000
1999
1998
1997
1996
1995
1994
27.1%
30.8%
1992
1993
30.3%
1991
32.6%
1990
29.1%
39.2%
29.7%
25.0%
28.6%
41.1%
46.4%
45.3%
43.8%
48.2%
53.4%
56.0%
49.2%
48.8%
45.4%
38.4%
35.1%
34.8%
32.1%
26.7%
40.2%
58.2%
52.3%
48.4%
42.2%
36.9%
31.5%
26.0%
33.7%
30.8%
31.8%
19.6%
1989
1988
1987
1986
70.5%
67.3%
81.8%
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
45.4%
45.4%
52.4%
54.8%
54.7%
53.9%
49.2%
51.5%
51.0%
58.2%
58.5%
58.6%
61.4%
61.3%
60.5%
57.6%
54.1%
50.7%
1998
1999
50.2%
48.0%
48.7%
54.9%
53.4%
50.3%
49.5%
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
68.5%
67.1%
68.9%
74.5%
73.8%
Figure 7: Debt-to-GDP Ratio
Sources: BTr and PSA
In 2014, the countrys interest payments as a share of expenditure was at 16.2

percent and is programmed to further decline to 13.1 percent in 2016, the lowest level
since 1986. In addition, total debt service (principal amortization plus interest
payments) as a percentage of government expenditure has been decreasing,
reaching 26 percent in 2014, the lowest level since 1986.
Figure 8: Interest Payments and NG Total Debt Service as a Percentage of Expenditure
Note: 2015 and 2016 figures based on Budget of Expenditures and Sources of Financing
Total Debt Service as % of Exp
Source: DOF
Page 17 of 88
The countrys strong economic growth, coupled with improved fiscal management
that led to moderate budget deficits and broadening fiscal revenue base, contributed
to the Philippines first-ever investment grade ratings from three major credit rating
agencies in 2013. In addition, in July 2015, the Japan Credit Rating Agency, Ltd.
raised the Philippines credit rating from BBB to BBB+, the highest rating the country
has ever achieved and just a notch away from the A category, making the country
at par with India and ahead of Indonesia, Russia, and Turkey. JP Morgan notably
cited the Philippines as the most-upgraded sovereign in the region in recent years.
These improved credit ratings allow the government and the private sector to borrow
at cheaper rates, lowering debt service and freeing up more resources that can be
channeled to building better and resilient infrastructure, providing more and better
social services, and creating jobs.
Figure 9: Credit Rating History
Baa1/BBB+
Baa2/BBB
Baa3/BBBBa1/BB+
Ba2/BB
Ba3/BBB1/B+
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Moody's
S&P
Fitch
JCRA
Investment Grade
Source: DOF
Aside from improved competitiveness rankings and investment grade ratings,

investor confidence is also reflected by the stellar performance of the Philippine Stock
Exchange Composite Index (PSEi). Coming from the 3,000 level in July 2010, the
PSEi breached the 8,000 level, closing at an all-time high of 8,127.48 points on 10
April 2015. The PSEi closed on an all-time high 119 times under this Administration.
It was also the fastest growing index among select Asian indices39 from 2010 to 2014,
based on the World Federation of Exchanges data. Notably, amid recent global
economic headwinds, the PSEi was the only one among the stock exchange indices
of ASEAN-5 member nations to post year-to-date gains, growing at 5.9 percent.40
39
40
These include the Nikkei 225 (Japan), Topix Index (Japan), SET Index (Thailand), Jakarta Composite Index
(Indonesia), NSE Nifty (India), BSE Sensex (India), Kuala Lumpur Composite Index (Malaysia), China SE
Shanghai Composite Index (China), VN Index (Vietnam), China SE Shenzhen Composite Index (China), Straits
Times Index (Singapore), Taiwan Taiex Index (Taiwan), Hang Seng Index (Hong Kong), and KOSPI Index
(Korea).
As of 24 July 2015, year-to-date growth for the Straits Times Index (Singapore) was at -0.3 percent, FTSE Bursa
Malaysia KLCI (Malaysia) at -2.3 percent, SET Index (Thailand) at -3.8 percent, and JSX Index (Indonesia) at 7.2 percent.
Page 18 of 88
Figure 10: PSEi Record Highs (as of 24 July 2015)

9000
8000
7000
6000
5000
4000
3000
2000
1000
0
July 2010
July 2011
July 2012
Record Highs
July 2013
Daily Close
July 2014
July 2015
Peak
Source: PSE
Enhanced Exports and Expanded Markets

Exports grew by 20.6 percent from US$51.50 billion in 2010 to US$62.10 billion in
2014. To sustain this and to reduce vulnerabilities, the government is promoting the
diversification of export products and markets. For instance, with the subdued
demand for electronics as a result of the global economic slowdown, the government
facilitated the diversification to non-electronic manufactures and agro-based and
mineral export products, increasing their share to total exports from 40.9 percent in
2000 to 58.1 percent in 2014.
The country also sought new markets for its exports. In 1998, the US was the top
export market and accounted for 34.2 percent of total exports for the year. In 2014,
Japan, the top export market that year, accounted for 22.4 percent of total exports
followed by the US (14.0 percent) and China (13.6 percent). Currently, no single
market holds a third of Philippine exports, shielding the economy from volatility. To
further sustain growth, the government expanded the countrys trade links with
developed and developing economies, and regional markets.
In December 2014, the Philippines was included in the European Union Generalised
Scheme of Preferences Plus (EU GSP+) List, a preferential tariff scheme granted to
qualified developing countries that are committed to sustainable development and
good governance. Currently the only ASEAN country to be included in the scheme,
the Philippines may now export more of its products to the EU at zero tariffs. This
presents an opportunity for the Philippines to serve as a manufacturing hub for firms
interested in the EU and the ASEAN markets through the ASEAN Economic
Community. This will yield, based on an initial study made by DTI, a projected
increase in exports to EU of EUR611.8 million (US$702.7 million41) in the next three
years and translate to 267,587 jobs in agriculture and manufacturing.
41
Converted using Jan-Feb 2015 average rate of EUR1=US$1.148550
Page 19 of 88
Increased Foreign and Domestic Investments

Significant increases in investments were registered under this Administration. From
US$1.07 billion in 2010, net foreign direct investments (FDI)42 reached US$6.20
billion in 2014, a 479-percent increase from 2010 and the highest ever recorded in
the countrys history.
Figure 11: Net FDI (in US$ billion)
7.00
6.00
6.20
5.00
4.00
3.74
3.00
2.71
2.00
3.22
2.92
2.06
1.00
1.66
1.34
2.01
1.07
0.00
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: BSP
As of June 2015, 46.8 percent or P1.38 trillion of P2.94 trillion of PEZA-approved

investments since 1995, and 31.7 percent or P1.77 trillion of P5.59 trillion of BOIapproved investments since 1992, came in during this Administration.
PEZA-approved investments during this Administration (July 2010 to May 2015)
produced 624,874 direct employment or 51.8 percent of the total 1.2 million created
by all PEZA-approved investments since February 1995. From July 2010 to June
2015, BOI-approved investments generated a total of 321,877 employment or 22.2
percent of the total 1.45 million generated by all BOI-approved investments since
June 1992.
42
Net FDI is the sum of net equity capital (i.e., placements less withdrawals), reinvestment of earnings, and net
intercompany borrowings.
Page 20 of 88
Figure 12: Share of PEZA-approved

Investments per Administration (in P billion)
Figure 13: Share of BOI-approved Investments

per Administration (in P billion)
326.0
11%
360.9
12%
1,774.2
32%
2,052.7
37%
1,377.9
47%
876.4
30%
1,465.0
26%
302.3
5%
Ramos (3 years and 4 months)
Ramos (6 years)
Estrada (2 years and 7 months)
Estrada (2 years and 7 months)
Arroyo (9 years and 5 months)
Arroyo (9 years and 5 months)
Aquino (5 years)
Aquino (5 years)
Source: DTI
Filipino investors confidence in the economy is remarkable, as shown by the

increase in the investment promotion agency-approved investments from Filipino
nationals in the first 18 quarters of this Administration (Q3 2010 to Q4 2014). Their
investments reached P2.09 trillion, significantly higher than the P1.24 trillion
approved during the 30 quarters of the previous administration (Q1 2003 to Q2 2010).
Domestic investments were first tracked in 2003.
Supported the Development of Key Industries and Enterprises
The government gave full support to the development of key sectors that create the
most number of jobs.
Among these is the Information Technology-Business Process Management (ITBPM) sector where the Philippines is highly competitive. In the 2015 Tholons Top
100 Outsourcing Destinations Report,43 Metro Manila (NCR) remained the second
top outsourcing destination behind Bangalore, India. Aside from Metro Manila, seven
other cities44 in the country are part of the top 100.
From 527,000 direct employees in 2010, the number of direct employees nearly
doubled to 1.07 million individuals in 2014, while revenues more than doubled in the
same period from US$8.9 billion to US$18.9 billion. By 2016, the industry is expected
to employ 1.3 million individuals and generate revenues of US$25 billion.
43
44
The Tholons Top 100 Outsourcing Destinations Report is acknowledged by industry stakeholders as the de facto
ranking of outsourcing cities around the world.
These are Cebu City (8th), Davao City (69th), Santa Rosa City (82nd), Bacolod City (86th), Iloilo City (91st), Baguio
City (95th), and Metro Clark (98th).
Page 21 of 88
Table 5: IT-BPM Industry
Revenues
(US$ billion)
Direct Employment
(000)
Sources: DTI and IBPAP
2010
8.9
527
Actual
2011
2012
11.0
13.2
640
777
2013
16.1
Estimate
2014
18.9
918
1,070
Target
2015
2016
21.3
25.0
1,190
1,345
Manufacturing is a key driver of employment, given its potential for innovation, value
adding, forward linkage with services, and backward linkage with agriculture. The
industry grew by 8 percent from 2010 to 2014, higher than the 3 percent from 2001
to 2009. Its contribution to the countrys GDP has also seen steady growth, from 22.2
percent in 2010 to 23.3 percent in 2014. In the first quarter of 2015, manufacturing
accounted for 24 percent of GDP. From a decline of 32,000 in 2009, employment in
the manufacturing sector increased annually by around 69,000 on average from 2010
to 2014.
Companies operating in the country produce high-value products. These companies
produce aircraft components (e.g., Moog Controls Corp, B/E Aerospace, and JAMCO
Philippines), electric tricycles (e.g., BEMAC Uzushio Electric Co., Ltd.), printers (e.g.,
Brother Industries, Canon, Epson, Funai), digital and media products such as
cameras and its parts (e.g., Ricoh Imaging Products [Philippines] Corporation), and
medical devices and equipment parts such as those used in in vitro diagnostics 45
(e.g., Arkray Industry, Inc.). In addition, several companies are putting up facilities for
the manufacturing of aortic catheters46 (i.e., Tokai Medical Products) and
hemodialysis treatment devices (i.e., JMS Co., Ltd.).
As part of the Manufacturing Resurgence Program, the President signed EO No. 182
on 29 May 2015 to implement the Comprehensive Automotive Resurgence Strategy
(CARS) Program to close the cost handicap47 that makes the Philippines
uncompetitive in car manufacturing in ASEAN. It will provide fiscal support for the
production and introduction of the enrolled models; manufacture of body shell
assembly and large plastic assemblies of the model; manufacture of common parts
and strategic parts not currently produced in the country; and establishment of
Shared Testing Facility for vehicles and/or parts. It will also implement non-fiscal
measures (e.g., government procurement, motor vehicle inspection system, and
stronger prohibition of second-hand vehicle imports) to stimulate demand for locallymanufactured vehicles. Further, foreign companies are allowed to participate in the
Program.48
45
46
47
48
These are tests that are usually performed in laboratories to detect diseases, conditions, or infections. These
include checking of blood and urine samples.
It is a long thin tube inserted in an artery or vein in ones groin, neck, or arm, and threaded through blood vessels
to the heart to diagnose or treat cardiovascular conditions.
Estimated at US$1,500 for small car to US$1,800 for an Asian Utility Vehicle
There are two companies, Toyota and Mitsubishi, which have shown strong interest in participating in the
program. In fact, Toyota, in its one-millionth sales celebration last 09 July 2015, has announced that they will
participate in the Program. However, the draft IRR is currently undergoing stakeholder consultation. The fiscal
incentive side of the Program is yet to be implemented because of the necessity to have an IRR for its
implementation.
Page 22 of 88
The Philippines is currently the fourth largest shipbuilding country in the world after
China, South Korea, and Japan, with a 2.3 percent market share, based on the
combined Gross Tonnage (GT)49 of ships ordered in 2014. The arrival of foreign
shipbuilders in the country, such as Hanjin, Keppel, and Tsuneishi, propelled the
growth of exports of Philippine-made ships. Philippine shipyards are now building
more ships of bigger tonnage capacities, such as bulk carriers, containers, and
tankers.
Micro, Small, and Medium Enterprises (MSMEs) comprise a very important sector of
the economy, accounting for 99.9 percent of total registered enterprises and
providing jobs to 63.7 percent of the total employed in 2013. MSMEs employed 4.77
million individuals in 2013, 35 percent higher than the 3.53 million individuals
employed in 2010. The government ensures that MSMEs have access to credit and
technology to spur their growth and to maximize their potential in generating
employment. Under the Magna Carta for MSMEs (RA 9501), banks are required to
allocate 10 percent50 of their loan portfolio. For 2014, P396.2 billion was lent or a
compliance ratio of 10.3 percent, P178.2 billion of which went to service the needs of
micro and small enterprises while P218.0 billion went to medium enterprises.51
To provide MSMEs access to the technology needed to improve their products and
services, the government launched the Shared Service Facilities (SSF) in 2012. As
of 30 June 2015, 1,102 SSFs nationwide have assisted 83,165 MSMEs and other
individual users. The DOST also established in 2012 the Advanced Device and
Materials Testing Laboratory (ADMATEL), which removes the need for
semiconductor and electronic enterprises to avail of testing services outside the
country. From January 2013 to June 2015, ADMATEL serviced 118 companies and
academic institutions and generated P9.2 million in revenues.
Institutionalized Reforms to Promote Competition
The government also opened up sectors to further entice investments. In 2014, RA
10641 (An Act Allowing the Full Entry of Foreign Banks in the Philippines, Amending
for the Purpose Republic Act No. 7721) was passed, further liberalizing the entry of
foreign banks.52 This will promote greater competition through the introduction of new
financial products and services, prepare the countrys banking system for the ASEAN
financial integration, and help attract more FDI. As of July 2015, the Monetary Board
has approved five license applications from foreign banks.53
For the aviation industry, the government implemented the Pocket Open Skies Policy
(EO No. 29, s. 2011) to allow foreign airlines unlimited54 take-off, landing, and
49
50
51
52
53
54
An index measuring a ships overall internal volume, including enclosed spaces.

8 percent for micro and small enterprises and 2 percent for medium enterprises
Data available as of September 2014
RA 10641 allowed foreign banks to operate in the country through any of the three modes of entry: 1) purchase
up to 100 percent of the voting stock of an existing domestic bank; 2) invest in up to 100 percent of a new banking
subsidiary incorporated under Philippine laws; and 3) establish branches with full banking authority.
These are Sumitomo Mitsui Banking Corporation (Japan); Shinhan Bank and Industrial Bank of Korea (Korea);
and Cathay United Bank and Yuanta Bank (Taiwan).
Unlimited may refer to flight frequency, flight capacity, or aircraft type.
Page 23 of 88
passenger conveyance rights to the countrys airports, except NAIA. The policy
contributed to the increase in the number of foreign airlines operating in the country,
from 43 in 2010 to 52 in 2014, providing passengers more choices and bringing in
more seats for incoming tourists. New entrants include All Nippon Airways, Turkish
Airlines, Xiamen Airlines, and Oman Air.
The Philippine Competition Act (RA 10667) was signed into law on 21 July 2015, two
decades after being stalled in Congress, to level the playing field among firms,
prevent economic concentration that control production, distribution, trade, or
industry, and penalize all forms of unfair trade, anti-competitive conduct, and
combinations in restraint of trade. It also establishes the Philippine Competition
Commission55 as a central office that will ensure that competition laws are effectively
enforced.
RA 10668,56 which amended pertinent laws relative to domestic cabotage, was
enacted on 21 July 2015. It allows foreign shippers for the first time to engage in the
transport of cargo intended for import or export to/from domestic ports. This will
enable the country to benefit from lower prices and greater efficiency brought about
by open competition. For instance, with cabotage amendments, an exporter from
Cagayan de Oro shipping cargo to Hong Kong will only need to pay a total of US$500
compared to US$1,264 at present.
2. Increased Opportunities for Employment and Economic Activity
To connect the countrys islands, bring produce to markets, reduce the cost of doing
business and the prices of consumer commodities, and provide access to livelihood
opportunities and social services, the government invested heavily on infrastructure.
Intensified Investments in Infrastructure
The government more than tripled the infrastructure budget, from P165 billion in 2010
to P569.90 billion in 2015 or around 4 percent of GDP.57 For 2016, the proposed
infrastructure spending is 5 percent of GDP or around P766.50 billion.58
Table 6: Infrastructure Budget as Percent of GDP
2010
2011
2012
GDP (in P billion)
9,003.48
9,708.33 10,567.34
Infrastructure Budget
165.00
175.40
215.70
(in P billion)
%GDP
1.83
1.81
2.04
Source: DBM
55
56
57
58
2013
11,548.19
306.90
2014
12,634.10
442.30
2015
13,919.10
569.90
2.66
3.50
4.10
The current Office for Competition Policy under the DOJ shall be modified to only conduct preliminary investigation
and undertake prosecution of all criminal offenses arising under the act and other competition-related laws.
An Act Allowing Foreign Vessels to Transport And Co-Load Foreign Cargoes for Domestic Transshipment and
for Other Purposes
Based on low 2015 GDP assumption of P13,919.10 billion
Based on low 2016 GDP assumption of P15,743.78 billion
Page 24 of 88
To further accelerate infrastructure development, the government invited private

sector participation through Public-Private Partnerships (PPP), particularly in the
design, planning, implementation, and maintenance of projects. To facilitate and
monitor the implementation of the PPP program, the PPP Center was created in
2010. The Center has since been recognized as the Best Central Government PPP
Promoter by the UK-based publication Partnerships Bulletin in 2014, the first of such
recognition given to the Philippines and to a country in Southeast Asia.
From December 2011 to June 2015, the government awarded 10 solicited 59 PPP
projects worth P189.02 billion60 to private sector partners, more than the 6 solicited
projects awarded during the past three Administrations. As of 22 July 2015, there are
13 projects under bidding and 27 in the pipeline. In sum, the government has
developed 50 solicited PPP projects with estimated investment requirements of
almost P997 billion.
The government is also undertaking two projects under unsolicited (i.e., MRT Line 7
and NLEX-SLEX Connector Road) and joint venture (i.e., Metro Manila Skyway
Stage 3) modes.
Table 7: Solicited PPP Projects per Administration
Administration
Awarded Projects
Fidel V. Ramos
1. Database Infrastructure and Information Technology System
(19921998)
2. Southern Tagalog Arterial Road (STAR)
Joseph E. Estrada
1. Civil Registry System
(19982001)
2. Land Tilting Computerization
3. Clark Water Supply and Sewerage
Gloria M. Arroyo
1. Tarlac-Pangasinan-La Union Expressway
(20012010)
Benigno S. Aquino III
1. Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway) Project
(2010present)
(Premium to the government: P925.01 milliona)
2. NAIA Expressway (Phase II) Project (Premium to the government: P11
billion)
3. PPP for School Infrastructure Project Phase I
4. PPP for School Infrastructure Project Phase II
5. Modernization of the Philippine Orthopedic Center Project
6. Automatic Fare Collection System Project (Premium to the
government: P1.09 billion)
7. Mactan-Cebu International Airport Passenger Terminal Building
Project (Premium to the government: P14.4 billion)
8. LRT Line 1 Cavite Extension Operation and Maintenance (O&M)
Project (Premium to the government: P9.35 billion)
9. Southwest Integrated Transport System Project
10. Cavite Laguna Expressway Project (Premium to the government:
P27.30 billion)
a
This includes P406.53 million paid to Alabang-Sto. Tomas Development, Inc. (ASDI) in April 2012 for advance
works.
Source: PPP Center
59
60
As provided by RA 7718 (BOT Law) and its IRR, solicited projects refer to projects identified by an Agency or
LGU as part of the list of priority projects.
This includes the P3 billion five-year O&M Cash Support for the Modernization of the Philippine Orthopedic
Center.
Page 25 of 88
On 24 July 2015, the Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway)

Project, the first awarded PPP project under this Administration, was opened to the
public. The Project will reduce travel time between Cavite and Makati from 90 minutes
to 45 minutes, benefiting 25,000 motorists per day.
Moreover, for the first time in Philippine history, private sector proponents now
provide the government premium payments to bag contracts, unlike in the past when
the government provided subsidies and guarantees to entice private sector
participation in build-operate-transfer (BOT) projects. Premium payments have so far
amounted to P64.07 billion.
In support of PPP, the government granted fiscal incentives to projects costing more
than P1 billion and created the Contingent Liability Fund (CLF), 61 from which funds
will be drawn in case of government breach of its obligations under PPP contracts,
thereby lessening regulatory risk for potential PPP investors. It also extended the
Bangko Sentral ng Pilipinas Circular on Single Borrowers Limit for PPP projects from
December 2013 to December 2016 to allow any person, partnership or corporation
involved in PPP to apply for loans of up to 25 percent of the net worth of lending
institutions.62 The government is also working with Congress to amend the BOT Law
to further enhance the legal and regulatory framework and to encourage more
investments.
In its April 2014 report, the Economist Intelligence Unit recognized the Philippines as
the most improved country in the Asia-Pacific for PPP readiness as a result of
significant regulatory reform in recent years, new biddings and selection procedures,
and better dispute resolution mechanisms. As a result, the country is now deemed
part of the developed PPP markets group, which includes the Republic of Korea,
Japan, and India.
The success of the Philippine PPP Program attests to investor confidence in the
government as a reliable, competent, and trustworthy partner in the development of
infrastructure projects.
Improved Road Quality and Connectivity
Starting 2011, the DPWH increased the standard thickness of concrete pavement
from 230 millimeters (mm) to 280 mm or 300 mm, for the same cost, for all national
roads constructed. This will extend the service life of roads, reduce maintenance cost,
and make the quality of the countrys national roads at par with international
standards. As a result of this, the countrys ranking in the WEFs Global
Competitiveness Report on the quality of roads jumped from 114th in 20102011 to
87th in 20142015.
61
62
An amount of P30 billion has been included in the 2015 GAA for this purpose. The CLF is proposed to be
institutionalized in the proposed amendments to the BOT Law.
This is separate from the Single Borrowers Limit for non-PPP transactions, which is also up to 25 percent of the
net worth of lending institutions.
Page 26 of 88
The government is also pursuing the establishment of a High Standard Highway

(HSH) Network, which allows the conveyance of high-traffic volumes at high speeds,
in Metro Manila and within its 200-km radius, as well as in Metro Cebu and Metro
Davao.
Projects under the HSH include the Metro Manila Skyway (MMS) Stage 3, NLEXSLEX Connector, and the C6 Expressway Phase 1. The MMS 3 will reduce travel
time from Buendia, Makati City to Balintawak, Quezon City from 2 hours to 1520
minutes. The NLEX-SLEX Connector will cut travel time between Clark, Pampanga
and Calamba, Laguna from approximately 3 hours to 1 hour and 40 minutes. The C6
Expressway Phase 1 will provide an alternate route for motorists traveling between
Paraaque and Quezon City without passing through EDSA or C5. Once the MMS 3
and NLEX-SLEX Connector are completed, motorists will have a high-speed direct
route from the North and South Luzon Expressways without passing through Metro
Manilas thoroughfares.
For other parts of the country, the HSH includes the Tarlac-Pangasinan-La Union
Expressway (TPLEX) and the Cavite-Laguna Expressway (CALAX), and the Laguna
Lakeshore Expressway Dike (LLED). The TPLEX, when fully completed, will reduce
travel time between Tarlac City and Rosario, La Union from 3.5 hours to 1 hour and
will benefit around 20,000 travelers per day. The CALAX will reduce average travel
time between CAVITEX and SLEX from 1 hour and 30 minutes to 45 minutes. The
LLED, which will connect Bicutan, Paraaque, and Los Baos, Laguna, will reduce
average time from 90 minutes to 35 minutes.
The government also completed various long-delayed road and bridge projects.
These include the following:
The Aluling Bridge (conceptualized in 1978 and completed in March 2013), which
reduced travel time between Cervantes, Ilocos Sur and Tadian, Mountain
Province from 1 hour to 30 minutes;
The Ternate-Nasugbu Road (conceptualized in 1994 and completed in January
2014), which reduced travel time between Manila and Nasugbu, Batangas via
Tagaytay City from 4 hours and 30 minutes to 3 hours;
The New Lullutan Bridge (destroyed during typhoon Rosing in 1995 and
completed in January 2015), which reduced travel time between Brgy. Calamagui
1st and Brgy. Lullutan in Isabela from 1.52 hours to 5 minutes; and
The Candelaria Bypass Road (conceptualized in 1998 and completed in 2012),
which decongested traffic along the Maharlika Highway by 40 percent.
In addition, the Basilan Circumferential Road, whose construction started in 2000, is
targeted to be completed in December 2015. Once the remaining works, including
the 1.16 km approach road section and construction of the three new bridges (i.e.,
Bacung, Guiong, and Limbo Candis Bridges, which are 91 percent accomplished)
are completed, the Project will reduce travel time around Basilan from 3 hours and
45 minutes to 2 hours.
Page 27 of 88
Road and bridge projects were also completed ahead of target, which include the C3 Road/Quezon Avenue Interchange (completed in September 2012; initial target:
December 2012), the Plaridel Bypass Road Contract Package II-Phase 1 (completed
in November 2012; initial target: February 2013), and the Tagumbao Bridge in Tarlac
(completed in May 2014; initial target: June 2014).
Other major road projects that are expected to be completed before the end of the
Administration include:
The Lake Lanao Circumferential Road, which will connect Marawi City and 18
other municipalities63, will reduce average travel time between municipalities
around Lake Lanao from 3 hours to 1 hour and 45 minutes, benefiting around
608,000 commuters. It is targeted to be completed in February 2016;
The Cotabato City East Diversion Road-Phase I, which will connect eight
barangays and the municipalities of Datu Odin Sinsuat and Sultan Kudarat in
Maguindanao and will cut average travel time going to and from Cotabato City
from 50 minutes to 25 minutes, is targeted to be completed by April 2016; and
The Millennium Challenge Corporation-Assisted Samar Road Rehabilitation
Project, which is targeted to be completed in April 2016, will link rural and urban
areas in Samar and Eastern Samar provinces.
Enhanced Connectivity Infrastructure
Investments in connectivity infrastructure enable the creation of gateways that
improve access to tourist destinations. These include the Laguindingan Airport, which
was opened as a Visual Flight Rules-only64 airport in June 2013, while its air
navigation facilities were fully installed in November 2014. Nine other new airports
are being constructed, including the Bohol and Bicol International airports. A total of
63 airports are being upgraded/rehabilitated, of which 17 are undergoing major
works65 (e.g., NAIA Terminal 1, Mactan Cebu, Puerto Princesa, and Davao
International Airports) while 46 are undergoing minor works. 66 Equipment are being
installed to allow take-off and landing operations at night in 7 provincial airports; and
ports connected to 18 tourist spots are being developed/improved.
To ensure safe air travel, the government, through the Civil Aviation Authority of the
Philippines (CAAP), instituted reforms to make the country compliant with
international air safety standards. These include the May 2011 installation of the Civil
Aviation Safety Oversight Reporting and Tracking System as CAAPs database
management system;67 continuing personnel development training; stricter regular
63
64
65
66
67
Ditsaan-Ramain, Bubong, Buadi-Puso, Molundo, Taraka, Tamparan, Masiu, Lumbayanague, Lumbatan, Bayang,
Binidayan, Pualas, Ganassi, Madamba, Madalum, Bacolod Kalawi, Balindong, and Marantao.
VFR is a flight wherein pilots must be able to fly the aircraft by looking outside the windows using visual references
(see other aircraft, terrain and obstacles). This is only permitted by air traffic controllers when there is adequate
visibility.
Major works refer to those that will increase the capacity and capability of an airport and its operations (e.g.,
construction of new runways and passenger terminals).
Minor works refer to maintenance works on the airport and its existing facilities (e.g., rehabilitation of passenger
terminal and runway asphalt overlays).
A collection of programs that enables users to store, modify, and extract information from a database
Page 28 of 88
implementation of the Minimum Required Annual Inspection (MRAI) 68 of all air

operators since June 2011; and regular revalidation (every two years) of the Air
Operators Certificate of airline operators.
These reforms resulted in the resolution of the International Civil Aviation
Organizations (ICAO) Significant Safety Concerns (SSC) on the countrys civil
aviation industry in March 2013.69 Following this, the US Federal Aviation
Administration (US-FAA) reinstated the countrys Category 1 status in April 2014,70
and the EU lifted its ban71 on all Philippine air carriers in June 201572 (EU lifted the
ban on PAL in July 2013 and Cebu Pacific in April 2014), allowing Philippine air
carriers to expand flights to the US and operate flights to Europe. The EU delegation
to the country noted that this was the first time that the entire aviation sector of one
country was removed from the European Air Safety List.
To enhance the safety, reliability, and efficiency of air traffic control systems, the
government is also investing in the P10-billion Communications, Navigation,
Surveillance/Air Traffic Management (CNS/ATM) System Project, which involves the
installation of a satellite-based air traffic control system. The Project is expected to
be completed by May 2016.
To further enhance connectivity, the government also implemented, through DPWH
and DOT, a Tourism Convergence Program. It invested a total of P60.4873 billion from
2011 to 2015 for 463 road projects, which is 338 percent or P46.69 billion higher than
the P13.79 billion allocated from 2006 to 2010. An additional P24 billion is proposed
for FY 2016.
As of 30 June 2015, 1,549.59 km of tourism roads have been completed, 846.00 km
are ongoing, 106.75 km are under detailed engineering/procurement stage, and an
additional 1,200 km are proposed in 2016.
68
69
70
71
72
73
All air operators are required to undergo the MRAI before their licenses to operate (e.g., AOC) are renewed by
CAAP.
The ICAO noted SSC on Philippine civil aviation in 2009.
The US-FAA downgraded Philippine civil aviation to Category 2 (non-compliant) in 2008.
There are 21 countries with air carriers listed in the EUs Air Safety List (e.g., Indonesia, Afghanistan, Kazakhstan,
and Nepal). Of these, there is a total ban (all air carriers certified by the country are banned from operating within
the EU) for 17 countries (e.g., Afghanistan, Republic of Congo, Eritrea) while four countries have some air carriers
which could operate in the EU (i.e., Indonesia, Angola, Republic of Gabon, Kazakhstan).
The EU banned Philippine air carriers from flying into its airspace in 2010.
P47.58 billion was funded under the DOT-DPWH Convergence Program, while the remaining P12.91 billion was
released from other DPWH programs from 2011 to 2015 (e.g., preventive maintenance, access to tourist
destination).
Page 29 of 88
Table 8: Select Tourism Road Projects

Project Name and Description
1. Island Garden City of Samal Circumferential Road,
Phase I, Davao del Norte (P1.03 billion)
Construction, opening, and upgrading of the 31.9-km
priority sections out of the total 96.30-km length of the
provincial road in Samal, Davao del Norte
Tourism sites that will benefit: Pearl Farm Beach Resort,
Tridacna Culture, and Samal Botanical Garden
2. Access Roads to Donsol, Sorsogon
Pioduran-Donsol-Sta. Cruz Road (P985.70 million):
Concreting of 26.5-km road section and construction of
three bridges
Guinobatan-Jovellar-Donsol Road (P700.00 million):
Construction/concreting of 24.90-km road
Tourism attraction that will benefit: Butanding Interaction
Program
3. Ambangeg Junction National Road to Mount Pulag,
Benguet (P165.00 million)
Concreting of 8.1-km section along the GurelBokod
KabayanBuguiasAbatan national road
Will reduce average travel time between Ambangeg
Junction National Road and Rangers Station from 1 hour
to 30 minutes
Tourism sites that will benefit: Mt. Pulag and Kabayan
Caves
4. Access Roads to the Underground River, Palawan
Bahile Macarascas Sabang Road (P79.75 million):
Rehabilitation of 3.75-km road;
Salvacion Sabang Stretch Tapul Bahile Road (P40.57
million): Concreting of 1.85-km road
Tourism sites benefiting: Underground River, Mangrove
Forest Tour, Sabang Zipline, and Ugong Rock Mountain
5. Panglao Island Circumferential Road, Bohol
(P1.03 billion)
Improvement/Concreting of 41.61 km of existing road
Travel time was reduced from 1 hour and 30 minutes to 1
hour
Tourism site benefiting: Panglao Island
6. Taytay-El Nido Road, Palawan (P1.13 billion)
Improvement/concreting of 44.60 km of road
Travel time from Taytay to El Nido will be reduced from 2
hours to 1 hour
Tourism site that will benefit: El Nido Island
Source: DPWH
Status/Timelines
66.04% complete as of June 2015; for
completion in 2016

completion in 2016
completion in 2016
completion within 2015
Completed in November 2013

Completed in June 2012
Completed in 2014
95.78% complete as of June 2015, for

completion in 2016
Due to the governments investments in infrastructure and aggressive marketing of

tourist destinations under the tourism branding campaign Its More Fun in the
Philippines, tourism activity greatly increased during this Administration. The country
surpassed its initial 2016 target of 35.5 million domestic travelers five years ahead of
schedule, with 37.5 million travelers in 2011 alone. This prompted the DOT to revise
the 2016 domestic arrivals target to 56.1 million. In 2014, the recorded number of
domestic travelers reached 54.6 million, already exceeding the 51.7 million target for
2015.
Page 30 of 88
At the same time, international tourist arrivals grew at an average annual rate of 8.3
percent74 from 2010 to 2014, higher than the 6.7 percent75 from 2001 to 2009. Tourist
arrivals from a single market (i.e., South Korea) reached a million for the first time in
2012.76 Average length of stay per visit also increased from 8 nights in 2010 to almost
11 nights in 2014, with average tourist spending per visit increasing from US$67277
in 2010 to US$1,10178 in 2014. Also, in 2014, average daily expenditure amounted
to US$103.55, higher than the US$93 in 2012. The tourists spent most on
accommodation, which accounted for around one-third of their expenditure.
Figure 14: International Tourist Arrivals (in millions)
5.00
4.00
3.00
2.00
1.00
1.80
1.93
1.91
2001
2002
2003
2.29
2.62
2.84
2005
2006
3.52
3.09
3.14
3.02
2007
2008
2009
3.92
4.27
4.68
4.83
2013
2014
0.00
2004
2010
2011
2012
Sources: NSCB and DOT
Direct employment in tourism-related activities increased from 4.13 million individuals

in 2010 to 4.76 million individuals in 2014.79
Table 9: Selected Tourism Indicators
Gross Value
Added
(in P billion)
Share to GDP (%)
Direct
Employment
(in million)
Total Receipts
(in P billion)
International
Domestic
Source: DOT
2010
573.0
2011
678.4
Actual
2012
764.9
2013
861.7
2014
982.4
Targets
2015
2016
974.0
1,147.9
6.4
4.1
7.0
4.3
7.2
4.6
7.5
4.7
7.8
4.8
7.8
6.3
8.7
7.4
849.3
1,081.3
1,235.6
1,410.0
1,743.6
1,957.5
2,307.1
135.5
713.8
158.5
922.8
195.2
1,040.4
225.3
1,184.7
274.6
1,469.0
350.4
1,607.1
455.0
1,852.1
These efforts to support tourism development earned numerous citations for the
country from various international organizations.
74
75
76
77
78
79
Computed using the formula for Compounded Annual Growth Rate (CAGR)
Computed using the formula for CAGR
Tourist arrivals from South Korea in 2012 reached 1.03 million.
Average length of stay (8.01 nights) x average daily expenditure (US$83.93)
Average length of stay (10.63 nights) x average daily expenditure (US$103.55)
This is based on preliminary estimates.
Page 31 of 88
Table 10: PH Tourism Accolades

Year
Issuing Organization
Accolade
2015
WEF
74th Place in the Travel & Tourism Competitiveness Index (from
94th Place in 2011)
2015
Trip Advisor
Top 25 Beaches in Asia, 2015 Travelers Choice (White Beach
and Yapak Beach in Boracay as 1st and 5th respectively, and
Secret Lagoon Beach in Palawan as 16th)
Cond Nast Travelera
2014
Top 30 Islands in the World (Palawan as 1st and Boracay as 12th)
2014
2014
2014
2014
2014
2014
a
b
c
d
TTG Asia Medias Travel

Trade Publishing Group
Warc 100b
Rough Guidesc
Lonely Planetd
Forbes
New7Wonders
Foundation
Destination of the Year

3rd among the worlds best marketing campaigns (Its more fun in
the Philippines)
One of the top 10 destinations
One of the top 10 countries to visit in 2015
Dumaguete as the 5th Best Place to Retire Around the World
Vigan as one of the New7Wonders Cities
An international travel magazine

A global annual ranking of marketing campaigns based on performance, effectiveness, and strategy
A British travel guidebook and reference publisher
Publisher of travel books and producer of magazines, website, and travel products and applications
Source: DOT
Developed Mass Transit Systems for Public Transportation

To facilitate faster passenger movement and decongest traffic in highly urbanized
areas such as Metro Manila and Metro Cebu, the government has been undertaking
the development of rail and road transport projects.
Within Metro Manila, the government is undertaking the Metro Rail Transit (MRT)
Line 3 Capacity Expansion Project, which includes the procurement of 48 Light Rail
Vehicles for completion by January 2017 (delivery of prototype by August 2015 and
batches of three to four trains scheduled to arrive monthly starting January 2016);
upgrading of ancillary systems (e.g., power supply) by December 2016; upgrading of
the signaling system for completion by February 2016; replacement of rails for
completion by March 2016; and rehabilitation of conveyance facilities for completion
by the second quarter of 2017 (rehabilitation of initial 12 escalators by December
2015, with the remaining 32 elevators and 34 escalators by the second quarter of
2017).
North of Metro Manila, projects to be undertaken include the North-South Railway
Project (NSRP) North Line from Malolos, Bulacan to Tutuban, Manila and the MRT
Line 7 from San Jose Del Monte, Bulacan to North Avenue, Quezon City. South of
Metro Manila, rail projects include the LRT Line 1 South Extension from Baclaran,
Pasay to Bacoor, Cavite, the NSRP South Line from Tutuban, Manila to Matnog,
Sorsogon, and the South and Southwest Terminals of the Integrated Transport
System, which will serve buses plying Laguna/Batangas and Cavite routes,
respectively. East of Metro Manila, the LRT Line 2 East Extension project from
Santolan, Pasig City to Masinag, Antipolo is also being undertaken.
Page 32 of 88
For Metro Cebu, the government is undertaking the Cebu Bus Rapid Transit Project,
which shall establish a transport system of around 176 buses that will run through
dedicated and exclusive bus-ways from Bulacao to Talamban in Cebu City, with a
link to Cebus South Road Property.
The government is also pursuing the installation of the Automatic Fare Collection
System for the LRT and MRT systems, which will replace the current magnetic stripe
tickets with a contactless and integrated card for both single journey and stored value
tickets. The system shall be fully operational by December 2015.
Continued Development of Agriculture
To spur rural development and create opportunities to increase farmers income, the
government invested in strategic agriculture infrastructure and modern equipment,
implemented value-adding interventions for crops, and improved and created market
access for agricultural products.
Investments in irrigation yielded a total of 164,230 hectares (ha) of new service areas
generated in just four years (20112014), surpassing the 144,016 ha generated from
2001 to 2010. This allowed farmers to increase the number of cropping from once a
year under a rain-fed system to at most five times every two years, contributing to the
achievement in 2014 of the highest recorded palay production in the countrys history
and increasing average annual palay production by 20.8 percent from 14.92 million
metric tons (MT) from 2001 to 2010 to 18.03 million MT from 2011 to 2014.
Figure 15: Annual Palay Production (20012014)
18.97
18.03 18.44
in million metric tons (MT)
20
18
16
14
12.95
13.27 13.50
14.50 14.60
15.33
16.24
16.82 16.27
16.68
15.77
12
10
8
6
4
2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: PSA-BAS, Volume of Crop Production
To sustain increases in palay production, nine priority irrigation projects that will
service major rice producing provinces are being undertaken. Among these are the
long-delayed Balog-Balog Multipurpose ProjectPhase II in Tarlac, the Jalaur River
Multi-Purpose ProjectStage II in Iloilo, and the Malitubog-Maridagao Irrigation
ProjectStage II in Cotabato and Maguindanao. When completed, these projects will
result in a projected aggregate increase of 880,720 MT, bringing the total annual rice
Page 33 of 88
production from these areas to 1.8 million MT. This increase is equivalent to almost
25 days of national consumption.80
Table 11: Priority Irrigation Projects
1. Balog-Balog Multipurpose Project Phase II, Tarlac
(P13.37 billion)
Will provide year-round irrigation to 34,410 ha in nine municipalities and
in Tarlac City
Expected to increase annual rice production in the coverage area by
177.5% from 126,480 MT to 350,980 MT
The Project was conceptualized in 1988 and funded through a soft loan
from the Italian government. However, implementation was delayed
due to natural disasters and to a change in priorities of the lender.
Project benefits include flood control and mitigation, inland fish
production, and power generation through a proposed hydropower
component. With a 50-year economic life spana and 641-year reservoir
life,b it is expected to generate 73,000 jobs during construction and
30,000 jobs upon operation.
2. Jalaur River Multi-Purpose Project Stage II, Iloilo
(P11.21 billionc)
Will provide year-round irrigation to 31,840 ha (9,500 ha of new areas
and 22,340 ha of existing service areas) in Iloilo
Expected to double annual rice production in the coverage area from
141,945 MT to 287,958 MT and increase annual sugarcane production
by 33.6% from 112,250 MT to 150,000 MT
The Project was conceptualized in 1960 with the enactment of RA 2651
(An Act Providing for the Construction of the Jalaur Multi-Purpose
Project in the Province of Iloilo and Governing its Operation after its
Completion). Construction of Stage I started in 1977 and was
completed in 1982. Pre-construction of Stage II was originally
programmed to start in 1987 but was deferred due to lack of funds.
3. Casecnan Multi-Purpose Irrigation and Power Project Irrigation
Component, Phase II, Nueva Ecija and Nueva Vizcaya (P5.44
billion)
Will service 19,341 ha of new areas in Nueva Ecija, 980 ha of new
areas in Tarlac, and 40,000 ha of rehabilitated areas in the Upper
Pampanga River Integrated Irrigation Systems (UPRIIS)
53.2% from 390,957 MT to 599,066 MT
4. Malitubog-Maridagao (Mal-Mar) Irrigation Project, Stage 2,
Cotabato and Maguindanao, (P4.94 billion)
Will service 9,784 ha of new areas in the municipalities of Pikit and
Aleosan in North Cotabato, and Pagalungan and Datu Montawal in
Maguindanao
Expected to significantly increase annual rice production in the
coverage area by 415.0% from 19,568 MT to 100,775 MT
5.
80
National Irrigation Sector Rehabilitation and Improvement Project

(P4.01 billiond)
Will restore and rehabilitate irrigation service to 10,606 ha and 23,727
ha, respectively, in Ilocos Norte, Pangasinan, Pampanga, Quezon,
Palawan, Iloilo, Bukidnon, Davao del Sur, Sultan Kudarat, and Agusan
del Sur
64.0% from 164,374 MT to 269,602 MT
Implementation Period
20152018
20122018
20122016
20112016
20122017
Based on the 35,650 MT national daily rice requirement
Page 34 of 88
Table 11: Priority Irrigation Projects

6. Agno River Irrigation System Extension Project, Pangasinan (P2.63
billion)
Will restore and rehabilitate the Agno River Irrigation System and
Ambayaoan-Dipalo River System
Will increase total service area to 12,894 ha from 3,936 ha
66.7% from 77,364 MT to 128,940 MT
7. Umayam River Irrigation Project, Agusan del Sur (P1.40 billion)
Will service 6,729 ha of new areas in the municipalities of Loreto and
La Paz in Agusan del Sur
coverage area by 2,248.6% from 1,790MT to 42,041 MT
8. Pasa Small Reservoir Irrigation Project, Isabela
(P1.03 billione)
Will irrigate 900 ha of new areas and rehabilitate service to 80 ha, which
will benefit 685 farmers households in the municipality of Ilagan
coverage area by 1,701.1% from 361 MT to 6,497 MT
9. Malinao Dam Improvement Project, Bohol
(P651.46 million)
Will increase impounding capacity of the existing dam by 3.11 million
cubic meters, sufficiently providing irrigation service to 740 ha of
unserved areas in Bohol
65.7% from 26,932 MT to 44,632 MT
a
b
c
d
e
Implementation Period
20152017
20122016
20132016
20112016
It will take 50 years to recover investment and for the dams dead storage level to be filled with sediments, which
will reduce water discharge to the service areas. The design life of the dam structure is more than 100 years.
It will take 641 years for the reservoir to be fully filled with sediments.
ODA: P8.95 billion loan from the Korean Export-Import Bank
ODA: P3.42 billion loan from JICA
ODA: P936.0 million grant from the ROK Government through KOICA
Source: OPAFSAM
To modernize agricultural production and post-production processes, the

government
provided
21,943
units
(P2.38
billion)
of
production
machineries/equipment to approximately 13,746 farmers groups and 32,393 units
(P1.44 billion) of postharvest machineries/equipment to 6,193 farmers groups from
2011 to 2014. A total of 5,770 (P6.6 billion) post-production facilities were constructed
and are now being used by 5,770 farmers groups. These helped reduce losses from
manual harvestingpost-harvest losses were reduced from 4 percent to only about
2 percent with the use of rice combine harvesters,81 and milling recovery was
improved by 5 to 8 percent through multi-pass rice mills.82
To improve the productivity of the coconut industry, the government implemented
various intercropping and product diversification projects (e.g., village-level coconut
processing) under the Kasaganaan sa Niyugan ay Kaunlaran ng Bayan (KAANIB)
Enterprise Development Project (KEDP). From 2011 to 2014, 28,000 farmers were
covered by 799 KEDP sites (i.e., 16,670 ha) established and intercropped with cacao,
coffee, banana, pineapple, vegetables, and other fruit-bearing trees. In addition, more
81
82
A machine that combines the basic harvesting operations of cutting, threshing, and cleaning.
A system that combines a number of milling operations (e.g., husk removing, polishing, grain separation), which
produce higher quality and higher yields of white rice.
Page 35 of 88
than 16,000 farmers are recipients of the 316 community- and household-based
processing facilities, which produce diversified, value-added coco products such as
coco sugar and coir. These provide additional income to the coconut farmers. For
instance, the annual income of farmers who intercropped with banana increased by
an average of P52,855 per hectare from the P20,000 average annual income from
traditional copra farming.
To complement efforts in the production side, the government invested in better
quality infrastructure. From 2011 to June 2015, the DA and DPWH constructed 83 a
total of 1,985.81 km of concrete, climate-resilient farm-to-market roads (FMRs),
which are not easily damaged by typhoons and flooding compared to the gravel
FMRs constructed in the past. These projects connected 3,252 barangays to main
road networks and markets, benefiting more than 630,000 farmers.
In addition, the DA, in coordination with LGUs, established seven Agri-Pinoy Trading
Centers (APTCs) that serve as direct marketing hubs for farmers and fisherfolk,
thereby eliminating the middleman and resulting in a projected 15 to 25 percent
increase in income. These completed projects are now operational and accessible to
more than 7,000 farmers. There are currently 14 more APTC projects (P1.23 billion)
at various stages of development in strategic areas of the country.
Table 12: Status of APTC Projects
Completed and Operational
1. Isabela Multi-Commodity APTC
(P121.30 million )
2. Nueva Vizcaya Expansion of
Agricultural Terminal
(P55.40 million)
3. Camarines Norte APTC
(P44.23 million)
4. Quezon Corn Trading and
Processing Center
(P28.19 million)
5. Pangasinan APTC
(P26.90 million)
6. Dalaguete APTC, Cebu
(P18.00 million)
7. Regional Organic Trading Center,
Nueva Vizcaya
(P18.00 million)
Ongoing
1. Benguet APTC (P656.00 million)
2. Batangas Agri-Pinoy Livestock
and Trading Area
(P187.00 million)
3. Nueva Ecija APTC
(P77.00 million)
4. Siargao Islands APTC
(P29.63 million)
5. Bohol APTC and Integrated
Auction Market and
Slaughterhouse (P23.00 million)
Preconstruction/Planning Phase
1. Davao City APTC
(P70.00 million)
2. Pangasinan - Region I Corn
Silage Processing and Trading
Center (P45.10 million)
3. Northeastern Leyte APTC
(P32.50 million)
4. Palawan APTC (P30.00 million)
5. Pagadian City Slaughterhouse
Rehabilitation and Trading Center
(P19.21 million)
6. Tabaco City APTC for Marine
Products, Albay (P18.40 million)
7. Sta. Ana APTC for Marine
Products, Cagayan
(P18.00 million)
8. Candon City Slaughterhouse and
Trading Center (STC), Ilocos Sur
(P13.50 million)
9. Tayug Municipal STC,
Pangasinan (P13.40 million)
Source: DA
To increase farmers income, the government is facilitating product diversification and

the opening of new markets for agri-based products by strictly enforcing food safety
regulations, investing in animal health through vaccinations and disease surveillance,
and upgrading the quality of export facilities. These led to the lifting of a US
restriction84 on the importation of Philippine mangoes sourced from various provinces
83
84
Projects are identified by LGUs, evaluated by DA, and implemented by DPWH.

Only mangoes from Guimaras, which are considered free from mango pests, were previously allowed to be
exported to the US.
Page 36 of 88
(e.g., Zambales, Cebu, and Davao) and the opening of Continental US, Hawaii,
Guam, and the Northern Marianas Islands market for Philippine bananas, making the
country the first in Asia to export bananas to Continental US. Other new export
products and markets opened include chicken products (Kuwait, Qatar, South
Korea); high-value fruits (UAE and Oman); and tuna loins and tiger shrimps (UAE).
Further, trade opportunities for coconut expanded with the development of diversified
coco-based products such as coco water. From less than 500,000 liters exported in
2009, coco water exported in 2014 reached more than 27.20 million liters. Volume
and value of coco water exports grew by an average of 274 percent and 265 percent,
respectively, from 2010 to 2014.
Strengthened the Fisheries Sector
The government improved market access of fisheries products, with fisheries exports
growing at an annual average of 20.5 percent for 2010 to 2013, higher than the 5.1
percent annual average growth from 2001 to 2009. To sustain the sectors
competitiveness and to comply with international standards and obligations, the
following were undertaken, among others:
Ensuring that controls and traceability measures (e.g., catch certification) are
implemented throughout the supply chain;
Completion of the registration of close to 1.6 million municipal fisherfolk under
BFAR's national Municipal Fisherfolk Registration System (FishR);85
Implementation of a joint mobile registration and licensing system, which
synchronized vessel registration and licensing activities of the BFAR, MARINA,
PCG, and National Telecommunications Commission (NTC) for all commercial
fishing vessels;
Enactment of RA 10654,86 which amended the Fisheries Code of 1998, increasing
sanctions for illegal, unreported, and unregulated fishing (IUUF) activities, among
others; and
Implementation of the Vessel Monitoring System to track the activities of fishing
vessels and detect illegal fishing activities.
These resulted in the lifting in April 2015 of the EU yellow card, which was issued in
June 2014 to serve as a formal warning on the Philippines violation of the EU
Regulation to prevent, deter, and eliminate IUUF.87 Said lifting, recognized as one of
the fastest among yellow-tagged countries, prevented the blacklisting of Philippine
fish product exports to the EU, thus helping the country maximize its zero tariff
85
86
87
The implementation of FishR in 2014 provided LGUs with a standard system for fisherfolk registration and a
centralized database. This database is now being cross matched with DSWDs National Household Targeting
System for Poverty Reduction, the Registry System on Basic Sectors in Agriculture (RSBSA), and PhilHealths
database to ensure that the poorest fisherfolk will be provided social benefits.
An Act to Prevent, Deter and Eliminate IUUF, Amending RA 8550, otherwise known as the Philippine Fisheries
Code of 1998, and for other purposes
The said Regulation provides that only marine fish products validated as legal (i.e., those caught and underwent
processing in compliance with national, regional, or international fisheries conservation or management legislation
or measures) can be imported to or exported from the EU. Access of any country or fishing vessel to the EU
market is dependent on its individual record on addressing IUUF.
Page 37 of 88
benefits under the EU GSP+. In 2013, the country exported EUR171.08 million
(US$227.23 million88) worth of fishery products to the EU.
Sustained Agrarian Reform
The government recognizes that land tenure stability is one of the cornerstones of a
strong agricultural policy. It is thus committed to ensure that lands covered by
agrarian reform are distributed to qualified beneficiaries.
When this Administration took over in 2010, more than 75 percent or 3.2 million of
4.2 million ha of distributed lands were non-private agricultural lands (e.g., settlement
areas, Landed Estates, and Government-Owned Lands) or private lands distributed
through voluntary modes of acquisition.89
What was left for distribution were private lands covering around 1.2 million ha, mostly
for compulsory acquisition, which are harder and more contentious to distribute. Of
these, the DAR acquired 566,25290 ha from July 2010 to December 2014, and was
able to distribute 506,512 ha to 305,484 agrarian reform beneficiaries (ARBs). The
remaining 694,784 ha are still left for processing,91 of which 431,520 are subject to
compulsory acquisition based on DARs Comprehensive Agrarian Reform Program
(CARP)-covered landholdings.
The authority of the DAR to initiate the acquisition and distribution of private
agricultural land92 ended on 30 June 2014. Prior to this, bills93 were filed in Congress
to allow the DAR to continue issuing Notices of Coverage and accepting Voluntary
Offers to Sell after 30 June 2014.
In compliance with the Supreme Court decision on the Hacienda Luisita, DAR was
able to distribute all the 4,100 ha of CARPable lands to 6,081 ARBs94 and acquired
400 ha for their common areas, such as firebreaks, which will also serve as access
roads to the farm lots of the beneficiaries, fishponds, canals, and roads, among
others. In 2014, ARBs of Hacienda Luisita organized themselves into ten barangay88
89
90
91
92
93
94
Converted using the 2013 average exchange rate of EUR1=US$1.3282

Voluntary modes of acquisition are: Voluntary Land Transfer (VLT) and Voluntary Offer to Sell (VOS).
This is equivalent to 43,935 landholdings processed by DAR. The difference of 59,740 ha are the non-CARPable
portions consisting of those retained by landowners, or portions rejected by the Land Bank of the Philippines due
to their being above 18 percent slope, undeveloped; rivers, creeks, roads, or portions found to be within
timberland. They are part of the total area that has been documented and processed but cannot be distributed to
farmer beneficiaries.
Processing entails the identification of beneficiaries; the conduct of ground survey to segregate areas not
coverable and the retention area of the landowner from those that are to be distributed, and to subdivide
distributable lands among the identified beneficiaries; and the resolution of any protests from coverage.
Through the issuance of a Notice of Coverage for lands under Compulsory Acquisition and acceptance of a
landowners offer under the Voluntary Offer to Sell scheme.
House Bill No. 4296 (An Act Mandating The Completion of The Land Acquisition and Distribution [LAD]
Component of the Comprehensive Agrarian Reform Program [CARP] Pursuant to Republic Act No. 6657,
Otherwise Known as The Comprehensive Agrarian Reform Law, As Amended), Senate Bill No. 2278 (An Act
Mandating the Completion of the Land Acquisition and Distribution [LAD] Component of the Comprehensive
Agrarian Reform Program [CARP] By June 30, 2016 Pursuant to Republic Act No. 6657, Otherwise Known as
the Comprehensive Agrarian Reform Law, As Amended)
The DAR received an appeal from 14 ARBs to be included in the list of beneficiaries after they failed to comply
with the requirements within the deadline. The case will be resolved within the next two months.
Page 38 of 88
based organizations to which the DAR can effectively channel support services, like
agri-extension and business development services. These organizations, along with
others nationwide, were recently granted farm equipment that will aid in strengthening
their organizations and increase productivity. The DA has conducted water and crop
suitability testing and provided training for the production of various crops. The Sugar
Regulatory Administration is lining up sugar block farm projects for those who wish
to continue with sugarcane production.
Improved Land Administration
The government pursued improvements in land administration and management to
support programs on good governance, social equity, and environmental protection.
The Cadastral Survey delineates the boundaries of various political units, identifies
individual claims of all land owners and claimants, and serves as basis for issuance
of titles and patents. From the passage of Commonwealth Act No. 2259 or Cadastral
Act in 191395 up to 2009, only 753 cities and municipalities (46 percent) were
surveyed due to lack of political will and insufficient funding.
To address land title issues, the government earmarked P5.70 billion to speed up the
Cadastral Survey. From 2010 to July 2015, the DENR surveyed 881 cities and
municipalities (54 percent), completing the cadastral survey of all 1,634 cities and
municipalities nationwide within this Administration.
The Land Registration Authority is close to completing its Land Titling
Computerization Program that will ensure efficiency and ease in the registration
system, as well as accuracy in land record. As of April 2015, a total of 152 or 95
percent of Registries of Deeds nationwide have been implementing the Program; and
99 percent of the 24 million titles have been digitized.
Ensuring Energy Sufficiency
Energy sufficiency is needed to sustain the countrys growing economy. To achieve
this, the government works on encouraging the private sector96 to increase the
number and capacity of power plants, and to diversify energy source, particularly
renewable energy (RE). From July 2010 to June 2015, a total of 43 commissioned
95
96
The Cadastral Act mandated the then Bureau of Lands to survey lands and compulsorily register land titles. In
compliance with the decentralization as mandated by the Local Government Code of 1991, DENR issued DAO
No. 30, series of 1992 to devolve the functions to conduct Cadastral Survey and lot survey, among others to
LGUs. However, not a single municipality had completed its Cadastral Survey due to lack of manpower and
financial resources. This prompted DENR, through DAO No. 2001-23, to get back from LGUs the devolved
function to execute, supervise, and manage land surveys.
Section 2 (d,i) of RA 9136, or the 2001 Electric Power Industry Reform Act, provides that it is the policy of the
state to enhance the inflow of private capital and broaden the ownership base of the power generation,
transmission and distribution sectors in order to minimize the financial risk exposure of the national government.
and to provide for an orderly and transparent privatization of the assets and liabilities of the National Power
Corporation.
Page 39 of 88
power projects,97 with an aggregate installed capacity98 of 1,554.20 MW, were added,
bringing the countrys energy supply to 15,878 MW in installed capacity, sufficient to
meet the 2015 peak demand of 11,975 MW.
The projected additional capacity needed from 2016 to 2020 is 871 MW for Luzon,
and 859 MW for Visayas. During the same period, Mindanao is projected to have an
excess capacity of 780 MW.99 To meet this, a total of 66 incoming committed power
projects100 nationwide with 5,069.75 MW of new capacities have been lined up.
These incoming projects are expected to be commissioned from now until 2019.
Table 13: Select Operational and Incoming Power Projects
Installed
Power Project
Capacity
Energy Source
(in MW)
Operational (Commissioned)
Mapalad, Iligan
103
Diesel
Caparispisan, Ilocos Norte
81
Wind
Burgos Wind Power, Ilocos Norte
150
Wind
Therma Marine Inc., Navotas
242
Diesel
South Luzon Thermal Energy Corp.
135
Coal
Puting Bato Phase I, Batangas
Incoming (Committed)
Concepcion Coal II, Iloilo
135
Coal
San Gabriel, Batangas
450
Natural Gas
Pagbilao III, Quezon
420
Coal
GN Power Kauswagan, Lanao del
540
Coal
Norte
San Buenaventura Power, Quezon
460
Coal
Source: DOE
Year of Commercial
Operation
2013
2014
2014
2014
2015
2016
2016
2017
2017
2019
In sum, the Administrations commissioned and incoming committed power projects

from 2010 to 2019 would total to 6,624 MW from 109 projects. These are much higher
than the previous administrations 1,667 MW from 21 commissioned power projects.
Of the 43 commissioned power projects, 23 are RE, while 36 out of the 66 incoming
committed power projects will likewise be sourced from RE.
97
98
99
100
Refer to private sector-initiated power plants that are in commercial operation. Committed power projects are
those which are ongoing, with physical construction, and/or have attained financial closure as reported by the
private sector proponents to the DOE.
Refers to the capacity of a plant, as indicated in its engine or by its manufacturer (rated capacity). On the other
hand, dependable capacity pertains to the reliable capacity of a power plant when factors such as ambient
temperature and site conditions, among others, are considered.
The required capacity additions were done on a per grid basis for a higher accuracy. The figures are based on
projected peak demand requirements, existing available capacity, committed power project capacity, less the
required reserve levels.
Refer to committed projects, which are expected to be commissioned in periods stated/agreed upon
Page 40 of 88
The government is also partnering with electric cooperatives to provide wider access
to electricity. As of 30 June 2011, only 71,048 (69 percent) of the 103,489 sitios101
had been energized, leaving 32,441 sitios as unenergized. The government pursued
the Sitio Electrification Program (SEP) to energize all 32,441 on-grid and off-grid
sitios.
From July 2011 to June 2015, a total of 25,257 sitios or 77.86 percent of the 32,441
target sitios were energized.102 Overall, the countrys sitio electrification level
increased from 69 percent in June 2011 to 93 percent as of June 2015, with a total of
96,305 energized out of the 103,489 sitios. The electrification of the remaining 7,184
sitios shall be completed before this Administration ends.
Ensuring Stable Water Supply
Alongside efforts to ensure energy sufficiency, the government sought to guarantee
a stable water supply. The Water Security Legacy Program was implemented starting
in July 2011 to promote collaboration among MWSS, its concessionaires, and other
stakeholders in developing plans and strategies that will address key issues on water
infrastructure development, resource management protection, and water distribution
efficiency, among others.
101
102
A sitio is composed of at least 10-30 households. It is considered energized if a) the households within it are
receiving power; b) infrastructure for the distribution system is in place; c) its respective electric cooperative is
processing the sitios requirements (e.g., membership, approved electrical plan, building permits) for household
connection; and d) household consumers are working on their LGU requirements (e.g., electrical plan, proof of
ownership, among others).
An average of P580,000.00 was spent per sitio, lower than the average cost of P870,000.00 in 2008. The more
cost-effective expense was pursued by NEA through the practice of transparency in procurement, and imposition
of standard prices for materials.
Page 41 of 88
Table 14: Water Security Legacy Program Status

1. Angat Water Utilization and Aqueduct Improvement
Project (Phase II), Quezon City
(P5.7 billion)
Optimizes raw water conveyance from Angat Dam to the
La Mesa Dam and the La Mesa Portal through the
construction of a new 9.9-km aqueduct and the
rehabilitation of another
Recovers 350 million liters per day (MLD) of water
2. Angat Dam and Dike Strengthening Project, Bulacan
(P1.63 billion)
Strengthens the dam, dike, and spillway to withstand
potential risk posed by possible seismic activity
associated with the West Valley Fault
Includes flood protection works and installation of flood
forecasting and warning systems to benefit downstream
towns and cities
3. Bulacan Bulk Water Supply Project, Bulacan
(P24.44 billion; PPP)
Provides clean and affordable treated water to 21
municipalities and three cities in Bulacan
Provides infrastructure and utilities for treatment and
conveyance of treated bulk water to water districts
4. New Centennial Water Source-Kaliwa Dam Project,
Rizal (P18.72 billion; PPP)
Provides a 600 MLD of raw water
Includes the construction a 27.7-km water conveyance
tunnel with 2,400 MLD capacity of raw water
Will reduce Metro Manilas heavy dependence on the
Angat Dama reservoir
5. Angat Water Transmission Improvement Project,
Bulacan (P5.78 billion)
Construction of a 6.3-km additional tunnel to allow the
necessary rehabilitation of the system without interrupting
the transmission of water
a
Status
Inaugurated in July 2012 (eight months
ahead of the contract period of March
2013)
Groundbreaking: July 2015

Target completion: 2017
Target bid submission: September

2015
Target bid submission: January 2016
Target bid submission: September

2015
The Angat Dam currently provides approximately 97% of potable water supply to Metro Manila, and parts of the
provinces of Rizal, Bulacan, and Cavite. Minor sources of water for Metro Manila are deep wells (1%) and
the Laguna Lake bulk water being filtered at the Putatan Water Treatment Plant in Muntinlupa, Metro Manila
(2%).
Source: MWSS
Page 42 of 88
POVERTY REDUCTION AND EMPOWERMENT OF THE POOR AND

VULNERABLE
Focusing on improving the overall quality of life of the Filipino, the government translated
the gains of economic growth into direct, immediate, and substantial benefits.
Sustained growth during this Administration contributed to a marked increase in
employment, with over 4 million individuals103 added to the number of employed from
2010 to 2014. Unemployment rate declined from 7.4 percent in 2010 to 6.8 percent in
2014, which was the lowest since 2005. For April 2015, unemployment rate was 6.4
percent.104
In a 2014 Gallup poll on local job opportunities in 145 countries, 66 percent of
respondents in the Philippines said that it was a good time to find a job in the country,
making the Philippines the most optimistic about finding a job among 22 Asia Pacific
countries and second globally, next only to Turkmenistan.
Complementing these improvements in employment are the governments efforts toward
social development that will enable the poor to take advantage of economic
opportunities, and social protection that will prevent them from falling deeper into
poverty. These include programs to capacitate its workforce towards decent and
productive work, promote access to affordable and quality health care, and empower the
poor and marginalized to enhance their access to basic needs and opportunities.
The priority accorded by the government on the welfare of the poor and the marginalized
is seen in its consistent allotment of the biggest share of the National Budget every year
to social services, increasing its allocation more than two-fold from 2010 to 2015.
Figure 16: Social Services Budget (20102015)
40%
35%
2500.0
30%
2000.0
25%
1500.0
20%
15%
1000.0
10%
500.0
0.0
Social Services Budget
National Budget
% Share in the National Budget
5%
2010
415.8
2011
544.9
2012
592.2
2013
712.1
2014
841.8
2015
952.7
1,473.0
1,580.0
1,829.0
2,005.9
2,264.6
2,606.0
28%
34%
32%
36%
37%
37%
% Share in the national budget
Amount (in P billion)
3000.0
0%
Note: 20102013 (Actual); 2014 (GAA); and 2015 (GAA)
Source: DBM
103
104
From 2010 to 2014, there were an average of over 800,000 new entrants in the labor force.
Note that 2014 data exclude Region VIII and April 2015 data exclude Leyte.
Page 43 of 88
The governments effort to put primacy in social services contributed to the decrease in
poverty incidence from 27.9 percent in the first semester of 2012 to 25.8 percent in the
first semester of 2014. This is equivalent to around 504,408 individuals getting out of
poverty.
1. Invested in the Filipino Workforce for Decent and Productive Work
Investing in human capital is critical in sustaining the gains of good governance and
economic growth. The government's central strategy to pursue this, and to also
reduce poverty and build national competitiveness, is through cohesive education
and training programs that seek to produce a workforce equipped with industryrelevant skills and competencies. To this end, the government allocated increasing
funds for education, reaching P453 billion by 2015, from P225.1 billion in 2010, or a
101.2 percent increase.105
The most critical measures taken include the institutionalization of the Philippine
Qualifications Framework, implementation of the K to 12 Basic Education Program,
provision of industry-responsive skills training, pursuit of reforms in higher education,
and implementation of targeted employment facilitation services.
Institutionalized a National Qualifications Framework
To match the countrys education and training outcomes with industry competency
requirements, the Philippine Qualifications Framework (PQF) was institutionalized
through the signing of EO No. 83 in October 2012. It harmonizes the countrys
education system by establishing national standards for the competencies and
outcomes required at each educational levelbasic education, technical vocational
education and training, and higher education. It further allows for greater career and
occupational mobility by providing more options on when to enter and exit the
educational ladder and the job market, thus encouraging lifelong learning.
By 2018, the PQF will have been fully referenced against the ASEAN Qualifications
Reference Framework to ensure regional comparability of the education and training
received by the countrys graduates, allowing their greater mobility across the region.
Enhanced the Quality of Basic Education
The government, recognizing the need to reform basic education to enhance its
graduates capabilities and access to opportunities, worked with Congress to pass
the Kindergarten Education Act (RA 10157) in January 2012 and the Enhanced Basic
Education Act (RA 10533) in May 2013. Reforms in the K to 12 Basic Education
Program ensure that every graduate is ready for employment, entrepreneurship, or
further education. Its salient features include:
105
Using 2010 actual and 2015 GAA figures
Page 44 of 88
Extension of the basic education cycle from 10 to 12 years,106 to allow sufficient

time for the mastery of concepts and skills and placing the Philippine basic
education curriculum at par with international standards;107
Adoption of the enhanced curricula covering one year of kindergarten, six years
of elementary, four years of junior high school (JHS), and two years of senior high
school (SHS);
Implementation of the SHS Core Curriculum, which was developed based on
CHEDs College Readiness Standards,108 to ensure that all basic education
graduates are prepared for higher education; and
Introduction of SHS Applied and Specialized Subjects to provide training and
preparation for specific career options under the Academic, Technical-VocationalLivelihood, Sports, and Arts and Design Tracks.
DepEd is focusing its efforts and resources for full K to 12 implementation, which
started with the introduction of universal Kindergarten in SY 20112012 and will be
completed with the nationwide introduction of Grade 12 in SY 20172018. These
efforts include the identification of schools that will implement SHS109 and the release
of the SHS Voucher Program policy to provide qualified JHS completers a P22,500
maximum grant per year110 to enroll in SHS.111 Various measures are also being
implemented by DepEd, CHED, TESDA, and DOLE to mitigate the impact of SHS on
higher education institutions (HEIs) and its personnel, which will have a significantly
reduced enrollment from 2016 to 2020.112
In support of improving education outcomes and K to 12 implementation, the
government provides basic education inputs to address both the 2010 backlog and
incremental and estimated needs. Specifically to address the 2010 backlogs, the
government procured and delivered 2.5 million school seats and 61.7 million
textbooks in 2012, as well as constructed 66,800 classrooms and hired 145,827
teachers in 2013.113
106
107
108
109
110
111
112
113
A 12-year program is found to be the adequate period for learning under basic education. It is also the globallyrecognized standard for students and professionals.
Prior to the enactment of RA 10533, the Philippines was the last country in Asia and one of only three countries
worldwide with a 10-year pre-university cycle, with Angola and Djibouti being the other two.
The Core Curriculum covers learning areas in Communication, Language, Mathematics, Natural Science,
Philosophy, and Social Sciences. CHEDs College Readiness Standards defines the expected entry
competencies for basic education graduates entering higher education after the K to 12 cycle.
As of July 2015, DepEd has identified/approved the following schools to offer Grade 11 in SY 20162017: 5,661
existing DepEd high schools, 227 proposed stand-alone DepEd schools (i.e., public schools that will exclusively
offer SHS), and 2,953 non-DepEd schools (i.e., private high schools and public and private colleges and
universities).
The voucher value that a beneficiary will receive is primarily dependent on: (i) the location of the SHS where the
student will enroll; (ii) whether the student finished Grade 10 from a public or private high school; and (iii) whether
the student will enroll in a private or public institution for Grades 11 and 12. The full voucher value per year for
students who finished Grade 10 in a public school and who will enroll in a private school for SHS is P22,500 in
Metro Manila; P20,000 in highly-urbanized cities outside Metro Manila such as Baguio, Cebu, Davao, Iloilo,
Lucena, Puerto Princesa, and Zamboanga; and P17,500 for all other cities and municipalities.
Covering private high schools, private universities or colleges, state or local universities or colleges, or technicalvocational schools
This is due to the lack of full cohort to enroll in college during the covered years, where there will still be a limited
number of basic education graduates from K to 12-compliant schools.
The 145,827 teacher backlog was addressed by end-2013 with the creation of 102,623 teacher items from 2010
to 2013 combined with about 43,000 Kinder volunteer and LGU-hired teachers.
Page 45 of 88
The government is also ensuring that there are sufficient basic education inputs for
the estimated 4.7 million additional students, which cover the 2.5 million increase in
student population for SYs 20102011 to 20162017 and the 2.2 million SHS
enrollees for SYs 20162017 to 20172018. This will require an estimated 118,000
classrooms. Of these, 33,608 have been constructed or are ongoing construction as
of February 2015, 41,000 are programmed for construction in 2015, and 43,000 are
under the proposed 2016 budget. For the estimated 130,000 teacher need, 114 29,444
were hired in 2014, 39,000 are targeted to be hired in 2015, and 60,000 are under
the proposed 2016 budget.
An additional 73.9 million textbooks and 1.6 million school seats have been procured
and delivered as of March and June 2015, respectively, and 88.7 million more
textbooks and 1.6 million more school seats will be procured and delivered by end2015. The procurement and delivery of 103.2 million textbooks and 4.4 million school
seats are under the proposed 2016 budget.
The gains in basic education were acknowledged in a May 2015 Philippine Institute
for Development Studies (PIDS)-UNICEF study, which highlighted the decrease in
out-of-school children in the country. From 11.7 percent of children aged 515 in
2008, it was reduced to less than half by 2013 to 5.2 percent. This is roughly
equivalent to 1.7 million children who would have been out-of-school children but are
now in school.
Table 15: Number of Out-of-School Children aged 515 in the Philippines
Indicator
2008
2013
School-age population aged 515
25.1
23
(in millions)
Out-of-school children aged 515
2.9
1.2
11.7
5.2
(in millions)
Share of out-of-school children aged 515

to school-age population
(in %)
Source: NEDA
It noted that this may be largely attributed to reforms and investments in basic
education, specifically the passage and implementation of the Kindergarten
Education Act and the Enhanced Basic Education Act, as well as the increase in
DepEd budget that allowed for significant accomplishments in providing basic
education inputs. The increased household coverage of the Pantawid Pamilyang
Pilipino Program, where family-beneficiaries must comply with education-related
conditionalities to receive cash grants, may have also contributed to said decrease.
114
DepEd provision involves the creation of about 130,000 new teaching positions to address incremental K to 10
enrolment and estimated SHS enrolment needs, as well as to provide plantilla positions to qualified Kinder
volunteer and LGU-hired teachers, taking into consideration the subject specializations required to teach at higher
grade levels.
Page 46 of 88
Implemented Industry-Responsive Training Programs

The government, through TESDA, oversees technical vocational education and
training (TVET) provided by technical vocational institutions and other companies and
communities. From July 2010 to May 2015, TVET programs equipped 7.8 million
graduates with skills relevant in various industries.
Based on TESDAs 2014 Study on the Employability of TVET Graduates, 115 58.9
percent of 2013 TVET graduates were 15 to 24 years old; 55.1 percent were high
school graduates; and 53.9 percent underwent TVET to improve employment
opportunities. It further recorded a 65.4 percent employment rate among the 2013
graduates, higher than most of those recorded in previous years.116
To assist those who decide to pursue TVET, the Training for Work Scholarship
Program (TWSP) provides scholarships to train beneficiaries in skills needed by
industries (e.g., IT-BPM, semiconductor and electronics, construction, tourism). This
is implemented in coordination with private sector partners, such as the Information
Technology and Business Process Association of the Philippines (IBPAP),
Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI), 117 and the
Association of Carriers and Equipment Lessors (ACEL) Inc., who work with the
government in identifying the skills, developing training standards, and actual training
of beneficiaries. TWSP benefited 821,962 graduates from July 2010 to May 2015, or
10.47 percent of total TVET graduates. Based on the 2014 Study on the Employability
of TVET Graduates, 71.9 percent of 2013 TWSP graduates found employment, which
is a marked improvement over the 28.5 percent employment rate of TESDA scholars
from 2006 to 2008.
In recognition of TESDAs efficiency in delivering its services, it was awarded
nationwide ISO 9001:2008 certification in February 2015. The certification covers its
program registration, competency assessment and certification, and development of
training regulations and competency assessment tools. It includes its Central Office,
17 Regional Offices, and 81 Provincial Offices, including TESDA-ARMM, which is the
first and only government agency in ARMM with an ISO certification.
Pursued Reforms in Higher Education
The government undertakes various reforms and initiatives with the end goal of
improving the quality, employability, and competitiveness of higher education
graduates. To achieve this, CHED adopted tactical reform strategies that focus on
enhancing the competencies of students and developing excellence in colleges and
universities.
Curricular re-engineering and upgrading are being undertaken to ensure the
alignment of the skills and competencies of higher education graduates with the K to
12 Basic Education Program, industry requirements, and international benchmarks.
115
116
117
Approved by the National Statistical Coordination Board (now Philippine Statistical Authority)
55.1 (2006); 60.9 (2009); 65.9 (2010); 62 (2011); and 65.3 (2012)
Graduates of TESDA-SEIPI trainings recorded an employment rate of 91.26 percent.
Page 47 of 88
CHED targets to align the Policies, Standards, and Guidelines of the existing 106
academic programs by 2016, 87 of which are in various stages of finalization as of
July 2015.
Specifically to align with K to 12, CHED, in collaboration with DepEd, also revised the
General Education Curriculum (GEC) in June 2013 to, among others, provide greater
flexibility through the use of an interdisciplinary approach118 and the transfer of
remedial courses in subjects such as language and mathematics to the Grades 11
and 12 curricula. The new GEC will take effect in AY 20182019, when the first
nationwide cohort who finished SHS enters college.
CHED also engages industry partners119 to develop and deliver programs in highdemand and/or emerging fields. To this end, specialization tracks in fields such as
Service Management and Business Analytics were developed to ensure that their
graduates are equipped with the necessary skills for careers in these fields. The
Service Management Program (SMP), which was introduced in three State
Universities and Colleges (SUCs)120 in AY 20132014 to equip graduates with
competencies demanded in the IT-BPM industry, has an estimated enrollment of
8,000 across eight implementing SUCs as of June 2015. The first batch of 727
students with specializations under the SMP graduated in March 2015. As part of the
preparations for the rollout of the Business Analytics track, CHED will provide
financial support to more than 4,000 faculty to undergo a special training program
starting AY 20152016 to further equip them with the skills and knowledge to teach
undergraduate and graduate courses in Business Analytics.
CHED also adopted a two-pronged strategy by rationalizing program offerings and
by providing support to deserving programs. It closed/phased out 686 substandard
or noncompliant programs121 from June 2010 to May 2015 and also provided P910.6
million to 421 deserving public and private HEIs122 from 2010 to 2015 for facilities
improvement and faculty development, among others.
In recognition of the countrys efforts to ensure the global competitiveness of its
higher education graduates through its compliance with international standards, the
Philippines attained provisional membership to the Washington Accord in June 2013
and Seoul Accord in June 2015, which are the international mutual recognition
agreements for engineering and IT disciplines, respectively. Specifically for the Seoul
Accord, the Philippines is the first ASEAN country to have achieved such status.
118
119
120
121
122
Through core courses which include Readings in Philippine History, Purposive Communication, and Ethics
Such as the IBPAP and IBM Philippines
Polytechnic University of the Philippines, Negros Oriental State University, and Laguna State Polytechnic
University
CHED orders the closure/phase-out of substandard or non-compliant programs in both public and private HEIs
when they fail to follow the program's minimum Policies, Standards, and Guidelines and show poor performance
in national licensure examinations.
Covering 301 Centers of Excellence (COEs) and Centers of Development (CODs) and 28 Research and
Development Centers, among others. COEs and CODs offer academic programs that have been benchmarked
against international practices and are recognized for their capacity to produce globally-competitive graduates
and cutting-edge research outputs. Research and Development Centers are composed of HEIs that conduct R&D
activities responsive to the needs of the region and their known field of excellence; initiate collaborative R&D with
foreign, regional, and/or area partners; and promote technology transfer and extension, among others.
Page 48 of 88
The countrys provisional membership to these Accords shows that the Philippines
gained significant ground towards developing an internationally-comparable
recognition/accreditation system in the fields of engineering and IT, as it is only
granted when the applicant has demonstrated that its system is conceptually similar
to those of full members. The government provided financial support through CHED,
which allowed the formulation of guidelines for an outcomes-based accreditation
system and the training of accreditors/evaluators for said disciplines, among others.
Full membership to these Accords will result in the international recognition of Filipino
engineering and IT professionals who graduated from accredited programs.
Provided Targeted Interventions to Improve Access to Opportunities
Based on a study released by the Asian Development Bank (ADB) in 2010, Filipino
students who entered but did not finish high school or college have limited access to
economic opportunities. The government, recognizing the challenges they face,
seeks to address this problem through, among others, the Abot-Alam Program.
Specifically for out-of-school youth (OSYs),123 the Program is the first initiative to map
OSYs nationwide and provide them appropriate interventions in education, skills
training, or entrepreneurship. Launched on 30 September 2014, it is a convergence
among various government agencies,124 non-government organizations, and other
institutions.
Out of the 2.67 million OSYs mapped by the government as of March 2015, a total of
776,532 have been matched and enrolled in appropriate program interventions. Of
these, 610,548 entered either DepEds Alternative Learning System (ALS)125 or
pursued higher education, 88,182 were provided opportunities for
entrepreneurship,126 and 77,802 underwent skills training for employment.
Ensured Compliance with Labor Laws
In 2012, the President approved the creation of 372 plantilla positions for Labor Law
Compliance Officers to achieve the ideal ratio of 1 labor inspector for every 120
establishments. The filling of these positions in 2014 increased the number of
establishments covered from 35,391 in 2010 to 76,880 establishments in 2014. Of
this number, 67,906 establishments have been assessed, of which 44,041
establishments were found compliant with labor laws. The latter employed 2.5 million
workers who received P357 billion in wages, service incentive leave pay, and the
mandatory 13th month pay.
123
124
125
126
Persons aged 15 to 30 years old who have not completed basic/higher education or are unemployed
Including DepEd, TESDA, CHED, DTI, and DOLE
A parallel learning system that responds to the need for a systematic and flexible approach in reaching all types
of learners outside the formal school system
Through the provision business-related trainings/seminars, seed capital, and/or startup equipment, among others
Page 49 of 88
Compliance with General Labor Standards127 also increased from 68.13 percent in
2010 to 84.57 percent in 2014.
Promoted Harmonious Employer-Employee Relations
Institutionalized in 2013 through RA 10396,128 the Single Entry Approach (SEnA)
mandates concerned DOLE offices to facilitate the settlement of employer-worker
disputes within 30 days, significantly reducing litigation processes, which took a year
on average.
From October 2010 to May 2015, 114,880 requests for assistance were processed,
and 91,926 (80 percent) of these were settled in an average of 17 days. SEnA further
facilitated the payment of P4.03 billion monetary benefits covering backwages,
separation pay, and other benefits to 132,331 workers. The Program helped maintain
the number of strikes at a single-digit level annually during this Administration, with
2013 registering a single strike, the lowest in DOLE history.129 A total of 15 strikes
were recorded from July 2010 to May 2015, while 199 were recorded from 2001 to
June 2010.
For its outstanding work, the DOLE-SEnA Team received the Presidential Lingkod
Bayan Award in 2013, which is given by the Civil Service Commission to individuals
or groups who have contributed significantly to public interest, security, and
patrimony.
In recognition of the reforms in the labor justice system, the Philippines' ranking in
the WEF Global Competitiveness Index for labor market efficiency improved from
111th in 2010 to 91st in 2014. For the sub-indicator on cooperation between labor and
management, the country's ranking likewise improved from 56th in 2010 to 29th in
2014.
2. Sustained Equitable Access to Affordable and Quality Health Care
The government furthers its investments in its people, especially the disadvantaged,
by providing equitable access to affordable and quality health care through the
Universal Health Care (UHC), also known as Kalusugang Pangkalahatan. To fully
realize the goals of UHC, the government consistently increased the annual budget
allocation for the DOH, from P28.7 billion in 2010 to P87.6 billion in 2015equivalent
to a 205.2 percent increase.
127
128
129
These refer to the minimum requirements that an employer should provide to the workers, such as wages, hours
of work, and other non-monetary benefits, as well as general occupational safety and health standards.
An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases,
Amending for this Purpose Article 228 of Presidential Decree No. 442, as Amended, Otherwise Known as the
Labor Code Of The Philippines
Strikes have been at a single-digit level since 2007: 6 in 2007; 5 in 2008; 4 in 2009; 8 in 2010; 2 in 2011; 3 in
2012; 1 in 2013; and 2 in 2014.
Page 50 of 88
Financial Risk Protection through the Expansion of the National Health Insurance
Program (PhilHealth) Coverage and Benefit Delivery
By 2016, the national government targets to expand PhilHealth coverage 130 to 95
percent of the countrys population.131
As of June 2015, PhilHealth coverage at the national level is 89.42 million or 88
percent of the 101.45 million 2015 projected population. This is almost double the
2010 coverage of 47.07 million or 51 percent of the 92.34 million 2010 population.
Contributing to this increase is the national governments initiative to sponsor families
belonging to the lowest quintile of the population (or the poorest of the poor) by fully
subsidizing their PhilHealth premiums132 starting 2012.133 This was later expanded to
benefit families belonging to the next quintile of the population starting 2014.134 Thus,
from 4.6 million135 in 2012, the number of national government-sponsored families
has consistently increased over the years, reaching 15.29 million136 as of the first
quarter of 2015 or 100 percent of the families that comprise the households137
identified as poor through the National Household Targeting System for Poverty
Reduction (NHTS-PR).138 The heads of these families139 and their qualified
dependents are entitled to avail of free in-patient and out-patient services from
government health facilities.
The national governments sponsorship of vulnerable sectors was further expanded
with the passage of RA 10645 or the Expanded Senior Citizens Act in November
2014, which made the PhilHealth coverage of all Filipino senior citizens mandatory.
130
131
132
133
134
135
136
137
138
139
Coverage refers to the entitlement of enrolled members and their dependents to PhilHealth benefits as regular
paying members; enrollment refers to enlistment/registration of individuals as PhilHealth members or dependents.
In 2013, PHIC shifted its accomplishments reporting from enrollment to coverage because the latter is reflective
of the number of Filipinos who can actually avail of PhilHealth benefits.
The target is to achieve 100 percent coverage by 2020.
Amounting to P2,400 annually per principal member (which represents a family)
Prior to the passage of RA 10606 (National Health Insurance Act of 2013), the PhilHealth premium of an indigent
was shared equally by the local and national government, except in the case of the 4 th to 6th class municipalities,
where the national government provided up to ninety percent of the subsidy until such time that these
municipalities have been upgraded to 1st, 2nd, or 3rd class.
Quintile 1 refers to the poorest segment of the population, while quintile 5 refers to the richest.
Composed of 20.43 million individuals, categorized as either a principal member or a qualified dependent of the
principal member (e.g., legitimate spouse; legitimate, acknowledged, or adopted children below 21 years old;
parents 60 years old and above; and children or parents with disability regardless of age). They comprised the
21 percent of the countrys 2012 projected population of 95.88 million.
Composed of 45.41 million individuals, categorized as either a principal member or a qualified dependent of the
principal member. They comprise 45 percent of the countrys 101.45 million 2015 projected population. The
sponsorship of individuals within NHTS-PR households that do not qualify as dependents of principal members,
as well as the sponsorship of families and individuals from the lower income group not in the NHTS-PR, explains
why the percentage of those sponsored by the national government against the total population exceeds 40
percent.
A household may be composed of more than one family. As more than one principal member may be registered
in a household, PhilHealth uses family or principal member (which sometimes represent a family) instead of
household in reporting accomplishments.
The list came from the households assessment conducted by the DSWD. RA 10606 provides that premium
contributions for indigent members as identified by the DSWD through a means test or any other statistical method
shall be fully subsidized by the national government.
Also referred to as PhilHealth principal members
Page 51 of 88
As a result, more than 4.8 million senior citizens have been enlisted by PhilHealth as
of June 2015. These senior citizens will also be entitled to benefits like other
government-sponsored members.140
Meanwhile, patients who are non-PhilHealth members but qualify as poor may be
enrolled and covered in PhilHealth through the Point of Care (POC) Enrollment
Program. Under this Program, which started in April 2013, the government hospital
will pay for the patients PhilHealth premium for the first year to immediately cover
hospitalization expenses.141 As of December 2014, a total of 157,022 indigent
patients have been enrolled in the Program through the 263 participating hospitals
(i.e., 59 DOH-retained, 202 LGU-owned, and 2 State University-owned)
nationwide.142
To better serve all its members and their dependents, PhilHealth also introduced the
following benefit packages that help reduce out-of-pocket expenses:
Table 16: PhilHealth Benefit Packages
Benefit Package
Description
1. Tamang Serbisyo para
Launched in February 2015, it is an outpatient benefit package that
sa Kalusugan ng
includes laboratory tests and maintenance for lifestyle-related diseases,
Pamilya (TSeKaP)
treatment for most common diseases (e.g., diarrhea, asthma, pneumonia,
urinary tract infection [UTI], hypertension, diabetes, high cholesterol, and
ischemic heart disease), and screening for cancers and other diseases.
It is an expansion of the Primary Care Benefit 1 (PCB1) launched in 2012,
which only covered services, diagnostics, and in-facility medications for
asthma, upper respiratory tract infection, UTI, and diarrhea.
2. Animal Bite Package
Launched in 2012, it aims to defray the cost of anti-rabies treatment to
patients.
The fixed rate is P3,000 per case, which covers rabies vaccine, wound
care, and antibiotics, among others.
From 2012 to 2014, a total of 31,106 patients benefited from the package,
with PhilHealth paying P92.85 million for these patients claims.
3. PhilHealth Outpatient
Launched in 2003 and enhanced in 2014, it covers new and retreatment
Anti-Tuberculosis
cases of drug-sensitive TB for both children and adults. Prior to its
Directly Observed
enhancement, only patients with new cases of TB can avail of the package.
Treatment Short
The fixed case payment for the course is P4,000, which covers diagnostic
Course (TB-DOTS)
examinations, consultation services, health education, and counseling.
140
141
142
Funds used to cover them are the incremental revenues from the excise tax collections on alcohol and tobacco
products, as mandated by RA 10351 or the 2012 Sin Tax Reform Act.
A POC-implementing hospitals social welfare officer evaluates and determines a patients eligibility to the
sponsored program using DSWDs enumeration tools.
To ensure continuity of coverage, the names of patients enlisted through the POC are turned over by PHIC to
DSWD for review and possible inclusion in the NHTS-PR list.
Page 52 of 88
Table 16: PhilHealth Benefit Packages

Benefit Package
Description
4. Maternity Care Package Launched in 2003 and last enhanced in 2014, it covers the essential health
(MCP)
care services (antenatal, intrapartum, and immediate post-partum) for
pregnant women. Enhancements are:
MCP can now be availed of in both hospitals and non-hospital health
facilities. Prior to this, the package can only be availed in birthing
homes.
A referral fee of P650 will be paid to birthing homes that referred
complicated cases/deliveries.
Health facilities that provided antenatal health services can still get a
reimbursement of P1,500 even if the mother delivered at another health
facility.
Most importantly, it ensures that every woman about to give birth shall
have financial access to health services by making sure that they are
enrolled to and covered by PhilHealth either through POC or other
mechanisms.
The amount of support ranges from P6,500 to P8,000.
5. Z-Benefit Package*
Launched in 2012, it covers catastrophic diseases such as breast cancer,
childhood acute lymphoblastic leukemia, prostate cancer, and kidney
transplant.
6. Expanded Z-Benefit
Launched in 2013, it covers additional catastrophic diseases such as
Package*
coronary artery bypass graft surgery (bara sa ugat ng puso), total
correction of tetralogy of fallot (butas at maling posisyon ng malalaking
ugat sa puso), closure of ventricular septal defect (malalaking butas sa
puso), and cervical cancer (kanser sa kwelyo ng matres).
7. Z-Morph Benefit
Launched in 2013, it is the first PhilHealth benefit package for persons with
Package**
disabilities (PWDs).
It covers the initial fitting of the lower limb prosthesis below the knee with
a package rate of P15,000 per limb prosthesis.
8. PD First Z-Benefit
Launched in 2014 in line with the efforts to strengthen peritoneal dialysis
Package**
(PD) as the initial line of treatment for patients requiring renal replacement
therapy.
The total package is worth P270,000 annually.
9. Z-Benefit for Selected
Launched in 2014, it covers hip prosthesis and selected implants or hip
Orthopedic Implants**
fixation and femoral shaft fracture, among others.
* From 2012 to May 2015, a total of 1,368 patients benefited from the Z-Benefit Packages, with PhilHealth paying
P467 million worth of claims.
** No claims have been filed yet for the Z-Morph Benefit Package, but there are already pending claims for the PD
First Z-Benefit Package and Z-Benefit for Selected Orthopedic Implants.
Source: PHIC
To ensure that the poor are able to avail of PhilHealth benefit packages without undue
financial hardships, the No Balance Billing (NBB) Policy was adopted in 2011. It
provides that no expenses should be shouldered by the national governmentsponsored members or their dependents confined in government health facilities. 143
The All Case Rates (ACR) was launched in 2014 to ensure that there is a fixed rate
for each treated case across all PhilHealth-accredited facilities. An expansion from
143
RA 10351 provides the funding for the coverage of the sponsored poor or the list of NHTS-PR assessed poor of
the DSWD. The law provides that 80 percent of the remaining balance of the incremental revenue derived from
excise tax collections, as mandated by this law, shall be allocated for the universal health care under the National
Health Insurance Program.
Page 53 of 88
the initial 23 medical and surgical conditions covered by the 23 Case Rates Package
adopted in 2011, the ACR covers a total of 4,699 medical and 4,335 surgical
conditions. It helps discourage healthcare providers from charging excessive fees,
thus enabling all members and their dependents to know exactly how much
PhilHealth will shoulder.
In terms of benefit payments, PhilHealth disbursement increased by 156 percent from
P30.51 billion in 2010 to P78.18 billion in 2014, with the average PhilHealth weekly
spending also increasing from P530 million in 2010 to P1.5 billion in 2014. The
average value per claim is P10,465 in 2014, an increase from the P7,930 in 2010.
Improved Access to Quality Government Health Facilities
To make PhilHealth coverage and benefit delivery expansion meaningful, the national
government enhanced the capacity of government health facilities in order to comply
with DOH licensing and PhilHealth accreditation requirements. Through this, people
can take full advantage of the benefits they are entitled to and are assured of
receiving accessible quality health care.
From 2010 to 2014, under the Health Facilities Enhancement Program (HFEP), a
total of 2,862 barangay health stations (BHSs), 2,626 rural health units (RHUs)/urban
health centers (UHCs),144 685 LGU hospitals, 70 DOH hospitals, and 14 hospitals of
other NGAs (e.g., military, police, and SUCs) nationwide were upgraded in terms of
infrastructure and equipment to improve access to quality primary, secondary, and
tertiary care services, especially by those living in areas far from town centers.
From 2015 to 2016, the HFEP will focus on making primary health care facilities ready
for accreditation as providers of PhilHealths TSeKaP, TB-DOTS, and MCP:
A total of 18,337 existing BHSs145 will be accredited as PhilHealth-TSeKaP

centers,146 which will provide access to an estimated 92 million individuals.147 Of
this total, 3,886 will be upgraded into birthing facilities to meet the MCP
accreditation requirements. This will provide access to MCP services to an
estimated 620,000 pregnant women.148
In addition, starting the third quarter of 2015, the national government will
construct an additional 6,400 school-based149 BHSs to fill the gap of clustered
barangays without existing BHSs. Half of the target is expected to be completed
by December 2015 and the other half by June 2016. These school-based BHSs
will also be accredited as PhilHealth-TSeKaP centers, and will be complemented
with one nurse per BHS under the Nurse Deployment Project.
144
145
146
147
148
149
Composed of 1,719 RHUs and 907 UHCs

Includes the 2,862 BHSs upgraded through HFEP
17,541 BHSs are for upgrading to TSeKaP by December 2015 and 796 BHSs by June 2016.
1 BHS : 5,000 population
Computation was based on the assumption that 3.5 percent of the 5,000 population per 1 BHS are pregnant
women
These BHSs will also serve as school clinics.
Page 54 of 88
A total of 2,617 existing RHUs and UHCs and an additional 6 RHUs and UHCs
for construction in 2016 will be accredited with three PhilHealth packages,
namely: TSeKaP, MCP, and TB-DOTS. This will result in a total of 2,623 RHUs
and UHCs accredited as providers of TSeKaP services to an estimated 52.5
million individuals;150 MCP services to an estimated 1.8 million pregnant
women;151 and TB-DOTS services to an estimated 230,000 TB patients.152
The government is also pursuing the modernization of major hospitals under the PPP,
such as the Philippine Orthopedic Center (Quezon City), Dr. Jose Fabella Memorial
Hospital (Manila), and Cagayan Valley Medical Center (Tuguegarao City).
In recognition of their quality and efficient health service delivery, 41 out of 70 DOHretained hospitals were ISO-certified in 2015. This is in addition to the ISO
certification of three DOH-attached agencies (i.e., Food and Drug Administration in
2013, PhilHealth in 2014, and National Nutrition Council in 2015), as well as all DOH
regional and central offices in 2013, which made the DOH the first executive
government agency to have a department-wide Quality Management System (QMS)
certified to ISO 9001:2008.
Fielding Health Human Resources to Communities
With the deployment of health human resources nationwide, the need for health
professionals in the countrys geographically isolated and disadvantaged areas is
augmented. Thus, previously unserved or underserved communities are now able to
benefit from the countrys public health programs. As of the second quarter of 2015,
the government has deployed 448 doctors153 and 12,237 midwives who annually
served an average of 1.7 million and 10.2 million individuals, respectively since 2010;
77,131 nurses154 who annually served an average of 38 million individuals since
2011; and 214 dentists starting 2015 who are each expected to serve an estimated
467,000 individuals.
Advanced Reproductive Health Care
The President signed the Responsible Parenthood and Reproductive Health Act (RA
10354)155 in 2012, after it languished in Congress for more than a decade, reflecting
the governments commitment to guarantee the exercise of the universal basic
150
151
152
153
154
155
1 RHU/UHC : 20,000 population

Computation was based on the assumption that 3.5 percent of the 20,000 population per 1 RHU are pregnant
women
Computation was based on the TB prevalence rate of 438/100,000 population and an assumption of 1 RHU :
20,000 population
Under the Doctors to the Barrios (DTTB) Program, where doctors are deployed to doctorless municipalities for a
period of two years. The 448 doctors account only for the aggregate of the newly deployed doctors since 2010
and do not reflect the actual number of doctors deployed annually under the program.
Under the Registered Nurses for Health Enhancement and Local Service (RN Heals) from 2011 to 2013, and the
NDP from 2014 to present
An Act Providing for a National Policy on Responsible Parenthood and Reproductive Health, signed on 21
December 2014
Page 55 of 88
human right to reproductive health and the promotion of gender equality and equity
through informed choices on reproductive health.
3. Empowered the Poor and Marginalized towards Self-Reliance
Recognizing the need to provide focused and purposive interventions for the poor
and the marginalized to enable them to participate in the countrys development, the
government intensified its social protection programs and improved avenues that will
enhance their access to basic needs and opportunities.
Updating the National Household Targeting System for Poverty Reduction
The NHTS-PR or Listahanan is an information management system that identifies
who and where the poor are nationwide through family assessments. The
government allotted P1.94 billion156 for the mandated updating of the NHTS-PR 2009
database,157 which started in March 2015 and is expected to be finished in January
2016.
The updating of said database involves the second round of assessment of the
targeted 15.3 million households nationwide that will eventually identify the bottom
40 percent of the population,158 determine the poor, near-poor,159 and non-poor, and
help the government provide interventions that suit each groups needs.
To address possible inclusion and exclusion errors,160 the enhanced Proxy Means
Test161 model will be used, a component of which is the Second Stage Screener that
requires the posting in conspicuous places of the initial lists of poor families for
validation of the communities where they live. 162
Expanded the Pantawid Pamilyang Pilipino Program (Pantawid Pamilya)
Pantawid Pamilya is the governments primary poverty alleviation program that
provides conditional cash grants of at most P2,000 per month 163 to the poorest
156
157
158
159
160
161
162
163
An Act Appropriating the Sum of P22,467,608,000.00 as Supplemental Appropriations for FY 2014 and for Other
Purposes (RA 10652) signed on 23 December 2014.
Per EO No. 867, s. 2010, the NHTS-PR should be updated every four years.
Using Family Income and Expenditure Survey and Labor Force Survey non-income variable predictors
Identification of the near-poor is a measure to prevent them from sliding down the poverty line in case of shocks
(e.g., sickness in the family, natural disasters, loss of job).
Inclusion error is when a non-poor family was classified as poor using the Proxy Means Test, while exclusion
error is when a poor family was classified as non-poor using the Proxy Means Test.
A statistical tool wherein a model is developed to determine the poverty status of households without using
reported income as reference. It is used to approximate the family income based on household information of the
families to be surveyed such as family assets, occupation/livelihood, educational attainment, type and condition
of house, and access to basic services.
This enables the community to transparently review the accuracy of the initial list of poor, near poor, and nonpoor. Families who were not visited during the first enumeration are also given the chance to apply for
assessment. Local Validation Committees are organized to resolve all complaints during the validation period.
The health grant is P500 per household per month, while education grant, which covers 10 months a year
(excluding April and May), is P300 per child in elementary school and P500 per child in high school at a maximum
of three children per household. The amount of grants depends on the monthly compliance of the eligible
members (pregnant mothers and maximum of three children) enrolled in the Program.
Page 56 of 88
households, subject to fulfilling their responsibility164 of keeping their children healthy

and in school, thus investing in their future. This gives them the opportunity to break
away from the cycle of intergenerational poverty, while providing them much-needed
immediate financial support. The government increased the budget for the Program
to more than P62 billion in 2015, six times that of the P10 billion in 2010.
Toward fulfilling its target to cover all 5.2 million eligible poor households listed in the
NHTS-PR 2009 database, Pantawid Pamilya increased its coverage annually from
786,523 poor households as of 30 June 2010 to 4.4 million165 poor and indigenous
households and street families with 0 to 18 years old children as of 24 June 2015.
Mindful of the importance of the fast delivery of cash grants to beneficiaries, the
government expanded access to these. From the over-the-counter and cash card
transactions in LANDBANK before this Administration, beneficiaries can now also get
their grants through rural banks, cooperatives, and remittance and money transfer
shops (i.e., Globes cash pick-up service GCASH REMIT outlets, M Lhuillier, and LBC
Express, Inc.).
The gains from the Program are reflected in the 2014 Impact Evaluation results,
which showed significant differences between the status of Pantawid Pamilya and
non-Pantawid Pamilya beneficiaries in health and education.166
164
165
166
Where a) pregnant mothers must avail of pre- and post-natal care and delivery services of skilled health
professionals; b) children 0 to 14 years old must avail of immunization, weight monitoring, nutrition counseling,
and childhood diseases management services, and receive deworming pills; c) children 3 to 18 years old must
be enrolled in and regularly attend day care/pre-, elementary, and high school; and d) parents or guardians must
attend Family Development Sessions and participate in community activities
Equivalent to 4,391,768 households and street families
Conducted by a research team led by Dr. Aniceto Orbeta, Jr., the study covered a nationally representative
sample of 5,041 households from 30 municipalities (10 each in Luzon, Visayas, and Mindanao) in 26 provinces,
which were registered in the Program between 2008 and 2011 and have thus been exposed to the Program for
two to four years at the time of data collection from October to December 2013. The study compared poor (eligible)
and near poor (not eligible) households, which are considered to have similar characteristics.
Page 57 of 88
Table 17: Final Findings of the 2014 Impact Evaluation of Pantawid Pamilya
Gains and Related Indicators
Pantawid Pamilya
Non-Pantawid Pamilya
Improved childrens access to selected key health care services
Children under 6 years old receiving
35%
23%
iron supplements; and
86%
74%
Vitamin A tablets
Children undergoing weight monitoring
19%
12%
regular monthly (02 y/o)
49%
25%
regular bi-monthly (35 y/o)
Children 614 y/o receiving deworming pills at least
78%
69%
once a year
Kept older children in school
Enrollment of children 1215 y/o
95%
89%
Attendance of 3-5 y/o children
94%
55%
(85% of school time)
Prioritized spending for education
Education expenditure (per school-aged child in preP458.42
P251.82
school and elementary per year)
Steered parents to aspire for a better future for their children
Parents think their child will finish college
74%
68%
Parents think their child will have a better future
87%
81%
compared to them
Source: Pantawid Pamilya Second Wave Impact Evaluation Results, 20 November 2014
Furthermore, starting in June 2014, the Expanded Conditional Cash Transfer (ECCT)
was implemented, extending the age coverage from 014 to 018 years old (taking
into account the K to 12 Basic Education Program) and increased the education grant
for children in high school from P300 to P500. These increased the opportunity for
children of covered households to complete secondary education. In SY 20142015,
there were 1.844 million167 1218 year-old children in high school, 333,673 of which
were the first batch to graduate in 2015. This batch is 99 percent of the total 337,685
Pantawid Pamilya senior high school in SY 20142015.168 Notably, 13,469 of the
graduates received academic and non-academic awards.169 As of 23 July 2015,
78,994 of the graduates have signified interest to go to college, and another 5,960
are interested to pursue technical-vocational courses, while 20,820 prefer to
immediately look for job or livelihood opportunities.170 For SY 20152016, the number
of beneficiaries in high school increased to 1.845 million as of June 2015.171
The expansion of age coverage of Pantawid Pamilya was based on a PIDS study172
conducted in 2013, which pointed to the importance of helping children beneficiaries
finish high school. It revealed that an elementary graduate can earn 10 percent higher
167
168
169
170
171
172
Based on Pantawid Pamilya March 2015 compliance data

The remaining 4,012 students were not able to graduate due to either of the following: (i) financial problems that
compelled them to work or stay at home to take care of their younger siblings; or (ii) armed conflicts and disasters
that had an effect on their school attendance.
A total of 1,312 are valedictorians and 1,024 are salutatorians.
The figures mentioned constitute graduates profiled based on partial submissions from 10 regions (i.e., Regions
I, II, III, IV-A, IV-B, V, VIII, IX, XII, and NCR). The DSWD awaits for the reports of the remaining seven regions
(i.e., CAR, VI, VII, X, XI, CARAGA, and ARMM).
Based on May and June compliance data
PIDS Policy Note No. 2013-02 (February 2013), Pantawid Pamilyang Pilipino: Why deepening matters in
achieving its human capital objectives, Celia M. Reyes and Aubrey D. Tabuga.
Page 58 of 88
than an elementary undergraduate, and that a high school graduate, on average,

could earn 40 percent higher than that of an elementary undergraduate.
Implemented Social Pension for Indigent Senior Citizens
Pursuant to RA 9994 or the 2010 Expanded Senior Citizens Act, 173 the Social
Pension for Indigent Senior Citizens was first implemented in March 2011 to augment
the daily subsistence and medical needs of indigent senior citizens with a P500monthly pension. Eligible beneficiaries are those 65 years old and above 174 poor who
are either identified through the NHTS-PR or by the LGUs and are validated by the
Office of Senior Citizens Affairs, particularly those who have no regular source of
income, pension, insurance, or any other financial support from their family or
relatives. From 2011 to May 2015, Social Pension served 937,556 senior citizens.
For 2015, 939,609 senior citizens are eligible to receive pension.
Figure 17: Social Pension Beneficiaries and Pensions Released
1,000,000
7,000.00
6,000.00
800,000
5,000.00
700,000
600,000
4,000.00
500,000
3,000.00
400,000
300,000
2,000.00
Amount in P million
No. of Pensioners
900,000
200,000
1,000.00
100,000
0
Target Beneficiaries
2011
138,960
2012
185,194
2013
232,868
2014
485,174
30-Jun-15
939,609
Pensioners
138,960
211,657
255,763
485,174
398,760
Program Budget
871.00
1,227.46
1,532.95
3,108.91
5,962.63
Cash grants released
833.76
1,115.48
1,382.03
2,098.18
605.42
0.00
Notes:
The other portion of the budget not released as cash grants is allocated for administrative costs.
As of 30 June 2015, a total of 360,970 pensioners or 74.4 percent of the 2014 target received their pensions
covering all months of 2014. Pay-out for the remaining 124,204 is ongoing and will be completed by August 2015.
Meanwhile, 398,760 pensioners or 42.4 percent of the 2015 target have received their pension for the first quarter
of 2015. A total of 793,143 or 84 percent of the 2015 target have been included in the payroll.
Source: DSWD
173
174
An Act Granting Additional Benefits and Privileges to Senior Citizens, Further Amending Republic Act No. 7432,
as Amended, Otherwise Known as "An Act to Maximize the Contribution of Senior Citizens to Nation Building,
Grant Benefits and Special Privileges and for Other Purposes" signed on 15 February 2010
The Program originally covered only those 77 years old and above from 2011 to 2014 due to budget limitations.
A significant increase in budget allocation for the Program in 2015 enabled the expansion of age coverage to
those at least 65 years old poor, qualified social pensioners.
Page 59 of 88
Promoted Gender Equality and Development in the Philippines

The government, with the Philippine Commission on Women as lead, worked to
promote equal gender opportunity and women empowerment in its policies and
programs.
To provide women with equal access to employment opportunities, RA 10151 175 was
signed into law on 21 June 2011, repealing the provisions of the Labor Code that
prohibit night work for women. In addition, the law further expands provisions on
health, maternity, and wellness benefits for the adequate protection of night workers.
The enactment on 15 July 2014 of RA 10644 or the Go Negosyo Act intensified
entrepreneurship in the country, as LGUs and other government agencies further
boosted the assistance to MSMEs for them to grow and flourish. Considering that 95
percent of microenterprises involve women, accelerating support to microenterprises mostly owned by women facilitated the provision of jobs to a significant
segment of the labor force.
The TESDA also collaborated with Coca-Cola Philippines, LGUs, NGOs, and
microfinance institutions to implement the Sari-Sari Store Training and Access to
Resources (STAR) Program, which aims to provide beneficiaries with access to
trainings on gender-based values and entrepreneurship skills, business planning and
managing (including bookkeeping and managing income and expenses), among
others. It is part of Coca-Colas 5by20 Program, which aims to economically empower
five million women within its value chain worldwide by 2020. In the Philippines, it aims
to benefit 200,000 women retailers. From December 2011 to June 2015, the STAR
program benefited 34,414 beneficiaries, of whom 33,315 have graduated from the
identified trainings.
The Philippines ranked 9th in the WEFs 2014 Global Gender Gap Index, which
measures how well countries divide resources and opportunities among their male
and female population, particularly in four areas: economic participation and
opportunity, educational attainment, political empowerment, and health and survival.
It is the only Asian country in the top ten of the said index.
In recognition of these efforts, the President as one of the ten world leaders invited
by the UN Women, will serve as a Champion World Leader in its HeForShe
Campaign, which encourages men and boys to speak out and take action against
inequalities faced by women and girls.
175
An Act Allowing the Employment of Night Workers, thereby Repealing Articles 130 And 131 of Presidential Decree
Number Four Hundred Forty-Two, as Amended, Otherwise Known as the Labor Code of the Philippines
Page 60 of 88
JUST AND LASTING PEACE AND THE RULE OF LAW

Peace and security are essential to sustain national development and improve the
collective welfare of the people. Towards this, the government focused its efforts on
ensuring the attainment of a just, comprehensive, and lasting peace, by preserving
national sovereignty, promoting public order and safety, protecting human rights, and
strengthening the rule of law.
1. Protected our National Territory and Boundaries
To protect our national territory, the government remained steadfast in upholding its
rights to its territories and in its commitment to strengthen and capacitate our armed
forces.
Upheld the Rule of Law in Resolving Maritime Disputes
The Philippines resolute stance on the West Philippine Sea issueone that is rulesbased and anchored on the concept of a peaceful settlement of disputes in
accordance with international lawcast international spotlight on the disputes in the
South China Sea and its impact on the peace and stability of the region.
In the face of persistent provocative actions, the Philippines has honored its
commitment to uphold the rule of law by resorting to international arbitration and
adhering to the principle of self-restraint embodied in the 2002 ASEAN-China
Declaration on the Conduct of Parties in the South China Sea (DOC). Initiated in
January 2013, the Philippines arbitral case is expected to receive a decision from
the Arbitral Tribunal by the first half of 2016.
The Philippines position has been instrumental in shaping global opinion on the
issue, with various nations joining the countrys call for freedom of navigation and
overflight, respect for international law, peaceful resolution of the disputes in
accordance with the 1982 UN Convention on the Law of the Sea, and the expeditious
conclusion of a Code of Conduct in the South China Sea (COC).
176
In a joint press conference in April 2015, Japan and the US issued statements
supporting the Philippines stance. Japanese Prime Minister Shinzo Abe
expressed resoluteness in opposing unilateral attempts to change the status quo
in whatever form, while US President Barack Obama reiterated the US
commitment to freedom of navigation, respect for international law and the
peaceful resolution of disputes. Both leaders also denounced the use of
coercion or intimidation.
Similarly, in June 2015, the G7 Leaders176 addressed in its Summit Declaration

the tensions in the South China Sea, underscoring their commitment to a rules-
G7 is an informal bloc of industrialized democraciesFrance, Germany, Italy, the United Kingdom, Japan, the
United States, and Canadathat meets annually to discuss issues of common interest like global economic
governance, international security, and energy policy.
Page 61 of 88
based order in the maritime domain based on the principles of international law
and the importance of peaceful dispute settlement as well as free and unimpeded
lawful use of the worlds oceans. They also expressed strong opposition to the
use of intimidation, coercion or force, as well as any unilateral actions that seek
to change the status quo, such as large scale land reclamation.
Others who are supportive of the Philippines call for the peaceful resolution of
disputes include the ASEAN, the EU, Australia, and New Zealand. Both the
ASEAN and the EU have consistently called for the full and effective
implementation of the DOC and the expeditious conclusion of the COC.
Enhanced the Defense Capabilities of Our Security Forces

The government prioritized the capability enhancement of the AFP through the AFP
Modernization and Capability Upgrade Program (AFPM/CUP) with the enactment of
the Revised AFP Modernization Program Act (RA 10349) in December 2012. The
law extended the implementation of the AFPM/CUP under the AFP Modernization
Program Act of 1995 (RA 7898) to complete the requirements of the previous
program and to develop the AFP with shifting capability to address Humanitarian
Assistance and Disaster Response, internal security, and external threats.
Under this Administration, P50.73 billion177 was released for the AFPM/CUP from
July 2010 to June 2015, exceeding by a wide margin the releases of previous
administrations.
Table 18: Fund Releases for the AFPM/CUP
Administration
Aquino (2010June 2015)
Arroyo (20012010)
Estrada (19982001)
Ramos (19951998)
a
Amount
(in P billion)
50.73
26.22
5.53
0a
The Old AFP Modernization Act (RA 7898) was enacted on 23 February
1995 and Congress issued Joint Resolution No. 28 (JR 28) on 19 December
1996, which embodies the 15-year implementation period of the
AFPM/CUP, along with the approval of the fund requirements to implement
it. However, no releases were made from 1997 to 1999 due to the Asian
financial crisis, the 1998 National Elections, and the eruption of hostilities in
Mindanao.
Source: DND
177
This amount includes the P19.09 billion released for the AFPM/CUP projects under RA 10349.
Page 62 of 88
During this Administration, a total of 56 projects were completed compared to the 45

projects completed during previous administrations. Most of the big military hardware
completed include:
Table 19: Completed AFPM/CUP Projects (July 2010July 2015)
Project
Recipient
Date Completed
Weather High Endurance Cutter (WHEC):
PN
December 2011 and November 2013
BRP Gregorio del Pilar & BRP Ramon
Alcaraz
Landing Craft Utility: BRP Tagbanua, the
PN
22 November 2011
first locally-built landing craft utility
8 Sokol Combat Utility Helicopters
PAF
11 March 2013
5 AW-109 Naval Helicopters
PN
3 units on 16 December 2013 and
2 units on 21 July 2015
18 Basic Trainer Aircraft
PAF
28 June 2011
60 Field Ambulances
PA
28 January 2013
347 1 ton Troop Carrier Trucks
327 units for PA
137 units on 30 November 2010,
20 units for PN
20 units on 10 November 2011, and
190 units on 3 July 2013
270 2 ton Troop Carrier Trucks
250 units for PA
250 units on 7 February 2011 and
20 units for PN
20 units on 10 November 2011
Source: DND
Under RA 7898, the AFP is procuring various equipment and air and naval assets
aimed at further enhancing its capability in the performance of multiple roles, from
combat operations to humanitarian assistance and disaster response. In addition,
under RA 10349, the government is implementing 30 projects worth P83.92 billion to
develop our armed forces core capabilities, particularly in both maritime and air
domain awareness. The ongoing projects under the two laws include the following:
Table 20: Ongoing AFPM/CUP Projects
Project
Recipient
142 Armored Personnel Carriers
PA
49,135 Force Protection Equipment
41,560 units for

PA
Target Date of Completion

6 units delivered;
Remaining 136 units within 2015
44,080 units within 2015,
1,575 units within 2016, and
3,480 units for procurement
6,000 units for the

Philippine Marine
Corps
2,884 40 mm Grenade Launchers

74,251 Assault Rifles
1,575 units for the

General
Headquarters
PA
66,439 units for
PA
8 AW-109 Attack Helicopters
7,812 units for

Philippine Marine
Corps
PAF
2 C-212 Light Lift Aircraft

3 C-295 Medium Lift Aircraft
PAF
PAF
Within 2016
50,629 units delivered;
12,657 units within (Q4) 2015, and
10,965 units within 2016
2 units delivered;
Within 2015
1 unit delivered;
Page 63 of 88
Table 20: Ongoing AFPM/CUP Projects

Project
Recipient
2 Strategic Sealift Vessels
PN
5 Landing Craft Heavy
PN
12 FA-50 Aircraft
PAF
8 Bell-412 Combat Utility Helicopters
PAF
2 Frigates
2 Long Range Patrol Aircraft
6 Close Air Support Aircraft
2 C-130 Aircraft
PN
PAF
PAF
PAF
Target Date of Completion

1 unit in May 2016 and
the other unit in May 2017
2 units to arrive on 08 August 2015a;
Remaining units for procurement
2 units to be delivered in December
2015 while the remaining units shall be
delivered in batches of 2 until 2017
6 units delivered;
2018
2017
2017
(Q3) 2016
The two Landing Craft Heavy came from Australia, who also provided spare parts and brand new generators.
Source: DND
The AFP also conducted the repair and recovery of existing assets, which include
two C-130 aircraft in 2012 and one landing craft utility (BRP Manobo) in 2011, among
others. One of the two C-130 aircraft was completely repaired and recovered in the
country by the 410th Maintenance Wing of the Philippine Air Force, while the other
one was repaired in the US. BRP Manobo is the former BU-297 commissioned on 23
June 1988, which was repaired and reactivated in March 2011.
2. Ensured Public Order and Safety
To sustain its efforts in ensuring peaceful and safe communities, the government
strengthened and enhanced the capability of its security forces while also ensuring
their welfare.
Arrested High-Value Targets
From 2010 to 2015, government authorities178 neutralized 129179 high-value targets,
arrested 162,988 wanted persons,180 neutralized 1,096 criminal gangs, and
recovered 29,294 loose firearms. Among the high-value targets and wanted persons
neutralized are terrorists Zulkifli bin Hir aka Marwan, Abdul Basit Usman, former BIFF
Vice Chairman Mohammad Ali Tambako, BIFF leader Abdulgani Esmael Pagao, the
CPP Acting Chair Benito Tiamzon, CPP Secretary-General Wilma Tiamzon, and NPA
Commander Leoncio Kumander Parago Pitao, Ruben Saluta, and Emmanuel
Bacarra.
Pursued the Normalization of CPP-NPA-NDF181 (CNN)-Affected Communities
Forty-six (46) out of the 76 CNN-affected provinces182 have begun the normalization
process, whereby the AFP, PNP, the Provincial Government, and other stakeholders
178
179
180
181
182
Either through AFP operations, PNP operations or AFP-PNP Joint Operations.

Of this number, 16 were killed, 100 were arrested, and 13 surrendered.
Some of the high-value targets of the AFP also belong to the wanted persons of the PNP.
Communist Party of the Philippines New Peoples Army National Democratic Front (CNN)
The AFP includes Davao City, a chartered city, in this count.
Page 64 of 88
declare a province as peaceful and where conflict is manageable, which will then
pave the way for the implementation of projects that can contribute to economic
growth, tourism promotion, and other developments in the area.
Enhanced Logistical Requirements for the Public Safety Corps
To ensure that the uniformed personnel are adequately equipped to perform their
duties, the government is procuring the following:
Table 21: Select Projects Under the PNP Capability Enhancement Program
Distributed
Items
Target Date of Distribution of Remaining Units
(as of 23 July 2015)
2,523 Patrol Jeeps
302
577 Utility Vehicles
179
5,736 Motorcycles
884
621 Firetrucks
130 Prisoner Vans
30,136 Long Firearms
29,266 Handheld Radios
76
65
12,399
3,328 Investigative Kits

523 CCTV Systems
a
315a
1,168 units will be distributed by October 2015.

The remaining 1,053 units are currently under various
stages of procurement.
The remaining 398 units are currently under various
stages of procurement
The remaining 545 units will be distributed within 2016
The remaining 65 units will be distributed within 2016
Still subject for procurement
Still subject for procurement
The remaining 208 units will be installed within 2015
In January 2015, the PNP installed 172 CCTV cameras in five PNP District Offices and 38 police stations to
ensure transparency and deportment of police personnel in police stations. Moreover, under the Project SAFE
KAm, which was launched in May 2015, the PNP installed 143 of the targeted 351 CCTV cameras in various
crime-prone locations in NCR. The installation started in May 2015 and is on-going. The CCTV cameras were
installed in various identified crime-prone areas in Pasig, Pasay, Makati, Quezon City, Manila, Mandaluyong, and
Caloocan.
Source: PNP
Moreover, under the proposed 2016 PNP Capability Enhancement Program, the
government will also procure 10,000 9mm pistols, 25 vans for the PNP Crime
Laboratory, handheld radios, and investigative equipment, such as Automated
Fingerprint Identification System and DNA machine.
Notably, the PNP, for the first time, achieved a 1:1 police-to-pistol ratio for its
personnel in 2013, with the procurement of additional 74,879 units of Glock 17 9mm
pistol. Likewise, the BJMP, for the first time since its establishment, achieved a 1:1
jail officer-to-pistol ratio for its jail officers in 2014, with the procurement of additional
5,414 units of Taurus 9mm pistol.
Traditionally, the PNP relied only on police blotters in accounting for crime data.
Starting 2013, it adopted the Crime Incident Recording System (CIRS), wherein
barangay blotters and crime incident reports183 from other law enforcement agencies,
such as PDEA, BFAR, DENR, DSWD, and NBI, were also used in determining crime
volume. Through the new system, the PNP is able to keep track of the types and
frequency of crimes committed in various areas, and thus respond appropriately.
183
The two added parameters combined represent 48 percent, which is almost half of the overall total crime volume.
Page 65 of 88
Table 22: National Crime Situation
Total Crime Volumeb

Crime Solution
Efficiency (CSE) Rated
a
b
2010
2011
2012
2013a
2014
319,441
18.64%
241,988
28.87%
217,812
36.67%
1,238,817c
1,161,188
41.72%
38.49%
Jan-June
2015
509,924
50.14%
Figures for the 2013 TCV and CSE Rate was updated through the validation conducted by the PNP.
Figures include all crimes recorded by the police precincts and exclude crimes reported to National Support Units
(NSUs) to avoid duplication, since crimes are likely reported to police precincts first before being elevated to
NSUs. The exclusion of NSUs in the computation of the TCV and CSE only started around end-2012. However,
2010 and 2011 figures were also adjusted for comparison purposes.
The 2013 figure increased due to PNPs adoption of the CIRS. While the TCV comprises PNP blotters, barangay
blotters, and reports from other law enforcement agencies, the CSE rate only measures the CSE for the PNP
blotters.
CSE Rate is the percentage of solved cases out of the total number of crime incidents handled by the PNP for a
given period of time. A case shall be considered solved when all of the following elements concur: a) the offender
has been identified; b) there is sufficient evidence to charge him/her; c) the offender has been taken into custody;
and d) the offender has been charged before the prosecutors office or court of appropriate jurisdiction. A case
shall also be considered solved when some elements beyond police control prevent the arrest of the offender,
such as: a) when the victim refuses to prosecute after the offender is identified; or b) the offender dies or
absconds.
Source: PNP
Based on the crime statistics and analysis generated through the CIRS, the PNP
launched the Oplan Lambat-Sibat Program in 2014 to address criminality in Metro
Manila. The Program is a fusion of two PNP programs: 1) Operation Lambat, a
campaign launched in June 2014 against unregistered motorcycles and firearms
through the implementation of checkpoints, the issuance of warrants of arrest, the
surprise inspection in communities to check documents of motorcycles, the conduct
of visits to identified holders of firearm licenses for checking of validity, and the
frisking of suspicious persons for weapons; and 2) Oplan Sibat, a program launched
in August 2014 that aims to track down the most wanted persons identified by the
NCR Police Office and stations.
Since its launching, the Oplan Lambat-Sibat in NCR has accomplished the following:
Reduced the average of murder/homicide cases from 37 per week (January to
June 2014) to 23 per week by end of June 2015;
Reduced the number of robbery, theft, and carnapping of four-wheeled vehicles
and motorcycles from an average of 919 cases per week (January to June 2014)
to 444 cases per week by end of June 2015;
Arrested 448 of the 603 Most Wanted Persons (MWPs)184 in NCR; and
Arrested 302 out of 466 criminal gang members.185
One of the reasons to which the PNP attributes the decrease in crime volume is the
arrest of the MWPs, particularly through the Oplan Lambat-Sibat. Among the MWPs
arrested through the said program186 is Dexter Balane, leader of the Balane Group,
which is linked to the Martilyo Gang operating in Metro Manila and Mindanao. The
groups were allegedly involved in the robbery incidents in several malls in Metro
184
185
186
Refer to notorious persons whose arrest is prioritized and most sought as this will provide relief and comfort to
the community
Refer to persons who have common identifying signs or symbols and engage or have engaged in a pattern of
criminal activity, creating an atmosphere of fear and intimidation within the community or a specific area
The leader was arrested on 20 July 2015 in Iloilo thorough a joint PNP-AFP operation.
Page 66 of 88
Manila in 2013, using hammers, wrenches, and crowbars to smash glass display
cases of jewelries and other valuable items.
Given the success of Oplan Lambat-Sibat in Metro Manila, the Program is currently
being rolled out in Regions 3 and IV-A.
Promoted the Welfare of Uniformed Personnel
Aside from providing additional manpower and enhancing logistical capabilities, the
government also addressed the long-standing housing needs of low-income
personnel of the AFP and PNP, as well as other uniformed personnel (BFP, BJMP,
and BuCor). Under the Housing Programs 30-year amortization schedule, personnel
will pay P200 monthly for the first four years, up to P1,330 for the 30th year. As of 25
June 2015, a total of 57,328 housing units have been completed.
Table 23: Status of the AFP/PNP Housing Program as of 25 June 2015
Indicator
Budget
Timelinea
Housing Units
to be Built
AFP
PNP
BFP
BJMP
BuCor
No. of Sites and
Locations
Status
Housing Units
Awarded to
Program
Beneficiaries
(Responsibility of
the Housing
Boards)
a
b
c
Phase 1
P5.1 billion
May 2011
March 2012
24,298
Phase 2
P8.5 billion
March 2012
June 2015
31,200
Phase 2A
P1.6 billion
July 2014
December 2015
5,863
Phase 3
P5.46 billion
June 2014
April 2016
20,000
Phase 4
P0.1 billion
December 2016
10,900
10,900
1,498
1,000
15 sites in
Luzonb
14,040
14,040
1,560
936
624
31 sites in 14
regions
nationwide
Completed
30,841 units
(99%)
Initial movein/occupancy of
AFP, PNP,
BJMP, and BFP
is ongoingc
2,638
2,638
293
176
118
14 sites in 9
regions
nationwide
Completed
1,474 units
(25%)
N/A
9,000
9,000
1,000
600
400
26 sites in 10
regions
nationwide
Completed 715
units (4%)
153
153
17
11
7
1 site in
Mindanao
N/A
N/A
Completed
24,298 units
(100%)
All units turned
over by NHA to
the AFP and
PNP Housing
Boards as of
March 2013
341
N/A
Timelines have been adjusted due to delays encountered involving right of way and land registration issues, as
well as difficulties in land acquisition and documentary works, among others.
Located in Bulacan, Cavite, Laguna, and Rizal
NHA is waiting for the final assignment/allocation of housing units from BuCor.
Source: NHA
To further ensure the promotion of our soldiers welfare, the President issued EO No.
15, which grants AFP personnel who actually engage in combat operations a monthly
combat allowance of P260 in addition to their existing P240 combat duty pay. On 27
March 2015, the President also approved the increase in subsistence allowance187
of all uniformed personnel from P90 per day to P150 per day effective January 2015.
Payment for the January to April differential was made in April 2015.
187
A regular type of allowance given to all uniformed personnel to defray the cost of their daily regular meals.
Page 67 of 88
The government is committed to instituting economically viable reforms in the

pension system of the uniformed personnel to balance current needs with past
obligations and make it fiscally sound and sustainable. If the present system
continues, the pension appropriated out of the national budget will, in time, overtake
the salary paid to active servicemen. A bill addressing these concerns will be filed in
Congress.
3. Pursued Efforts for Peace and Development in Mindanao
As part of its commitment to achieve inclusive growth where no one is left behind, the
government took decisive steps toward attaining lasting peace and development in
Mindanaoa breakthrough in the decades-long quest for the cessation of hostilities
in the region.
Pursued Efforts for Just and Lasting Peace
After 17 years of negotiations, the government and the Moro Islamic Liberation Front
(MILF) signed on 27 March 2014 the Comprehensive Agreement on the Bangsamoro
(CAB), the fruit of the government efforts to pursue a sincere, inclusive, and
transparent peace process. The CAB contains important provisions on: a) delineation
of powers between the national government and the Bangsamoro government; b)
revenue generation and wealth-sharing; c) transition process; and d) normalization
process, which includes the turnover of weapons and the rehabilitation of conflictaffected areas.
In February 2013, four months after the signing of the Framework Agreement on the
Bangsamoro, the government launched the Sajahatra Bangsamoro Program to
implement quick-gestation, high-impact socio-economic projects focusing on
education, health, and livelihood for MILF-identified communities.
As of 30 June 2015, the status of these projects are as follows:
On education, 639 beneficiaries were enrolled under the College Study Grants
Program for AY 20142015, while 1,000 were provided technical and vocational
training. Forty-four (44) Madaris188 received grants and 3 day care centers189 are
being constructed.
On health, 11,000 beneficiaries were enrolled and covered under PhilHealth in
2014 and 2015, and 3,092 children benefit from the feeding program. Three (3)
BHSs190 were also completed.
On livelihood, 11,000 individuals benefited from cash-for-work. Six
communities191 were provided development assistance, such as farm inputs that
include equipment and working animals. Small-scale infrastructure projects, such
as FMRs192 are in various stages of construction.
188
189
190
191
192
Madaris are Islamic schools for children that focus on reading, writing, and arithmetic.
Basilan, Davao Oriental, and Lanao del Norte
Davao Oriental, Lanao del Sur, and South Cotabato
Davao Oriental, Lanao del Norte, Maguindanao, North Cotabato, South Cotabato, and Zamboanga Sibugay
Basilan, Lanao del Norte, South Cotabato, Sulu, Tawi-Tawi, and Zamboanga Sibugay
Page 68 of 88
The Bangsamoro Basic Law (BBL) filed in Congress in September 2014 shall
establish the new Bangsamoro political entity and shall enforce the agreements
reached in the CAB. On 27 March 2015, the President announced the creation of a
Peace Council, composed of civil society leaders193 to objectively evaluate the draft
BBL with the end in view of helping the general public understand the said draft. In
its report on 27 April 2015, the Peace Council recommended its passage, offering
recommendations on some provisions that require refinement. It likewise stressed the
need to a) acknowledge that the 2014 CAB and the BBL were built on the gains made
during the GPH-Moro National Liberation Front (MNLF) peace process; and b)
communicate the continuity between these two peace processes.
Alongside MILF-MNLF peace processes convergence efforts is the normalization
process, which aims to rehabilitate conflict-affected areas and transform these Fronts
into socio-economic groups following the turnover of their firearms in exchange for
social packages.
On 16 June 2015, the MILF initially turned over 75 crew-served194 and high-powered
weapons and decommissioned 145 combatants, which jumpstarts the
decommissioning of weapons and combatants as part of the normalization
process.195
Implemented ARMM Reforms as Groundwork for Inclusive Peace and Development
According to the Internal Displacement Monitoring Centre, since 2000, the conflict in
the ARMM has resulted in tens of thousands of deaths and has displaced more than
3.5 million people.196 In a 2011 study conducted by the World Bank on the impact of
conflict in Mindanao, displaced families were driven to long-term development
problems, such as poor access to social services, reduced income, and lack of trust
in institutions.197 This contributed to the ARMMs high poverty incidence and also
weakened government institutions, which made them susceptible to manipulation.
The COA Special Audit Report 2010-01 revealed that from January 2008 to
September 2009, government transactions amounting to P1.003 billion were
expended against COA rules.
193
194
195
196
197
The Peace Council was composed of Manila Archbishop Luis Antonio Cardinal Tagle, former Chief Justice Hilario
Davide Jr., businessman Jaime Augusto Zobel de Ayala, former Philippine Ambassador to the Holy See and
Malta Howard Dee, and founder of Teach Peace, Build Peace Movement Bai Rohaniza Sumndad-Usman.
These are weapons designed for use by two or more persons serving as crews (e.g., 60 mm mortar, 81 mm
mortar, RPG-2, and RPG-7).
To be done in four phases, it is the process of putting the weapons of the MILF beyond use and the process of
allowing a smooth transition for MILF combatants to productive civilian life.
Internal Displacement Monitoring Centre, Philippines: Internal displacement in brief, as of December 2013,
http://www.internal-displacement.org/south-and-south-east-asia/philippines/summary#.
Internal Displacement Monitoring Centre, Can Mindanaos new peace agreement help end displacement? 02
April 2014, http://www.internal-displacement.org/blog/2014/can-mindanaos-new-peace-agreement-help-enddisplacement; World Bank, Violent Conflicts in Mindanao and Displacement in Central Mindanao, published in
December 2011, http://www-wds.worldbank.org).
Page 69 of 88
Given these problems, the government saw the need to institutionalize reforms. To
pave the way for these, the President signed into law RA 10153198 in 2011,
synchronizing the ARMM elections with the national and local elections. In line with
this, interim regional officials were appointed to ensure that the reforms will be
executed and sustained.
All ARMM regional line agencies now disclose their funds and projects in compliance
with the Transparency Seal. All bids notices are also published in the PhilGEPS
website, making bidding for government projects transparent and competitive. The
submission and publication of government personnels SALN is also being strictly
enforced, while cash advances, which comprised 80 percent of the unliquidated
disbursements in the past, have been disallowed beginning 2012.
The ARMM passed the Regional Assembly Public Works Act199 in 2012, which
required the publishing of bid invitations online and in newspapers, removed lump
sum appropriations, and prohibited the re-gravelling200 of roads. These reforms
generated savings totaling P250.28 million from 2011 to June 2014, which were used
to fund the renovation and repair of ARMM government structures, and the
acquisition of heavy equipment and vehicles needed for infrastructure development
in the region.
In support of the initiatives of the ARMM Regional Government, the national
government consistently increased the budget allocation for ARMM from 2011 to
2015, most of which were allocated for economic and social services in areas
previously not reached by the government.
Amount (in P billion)
Figure 18: Budget Allocation for ARMM (20082015)

30
25.23
25
20.52
20
15
10
10.4
11.85
12.46
8.77
9.99
2008
2009
2010
2011
2012
14.05
5
0
2013
2014
2015
Source: DBM
198
199
200
An Act Providing for the Synchronization of the Elections in the Autonomous Region in Muslim Mindanao (ARMM)
with the National and Local Elections and for other purposes.
This Act was carried on to succeeding Regional Assembly Public Works Act. According to Article VI, Section 20
of The Organic Act for the ARMM (RA 9054), The annual budget of the Regional Government shall be enacted
by the Regional Assembly. Funds for infrastructure in the autonomous region allocated by the central government
or national government shall be appropriated through a Regional Assembly Public Works Act. Unless approved
by the Regional Assembly, no public works funds allocated by the central government or national government for
the Regional Government or allocated by the Regional Government from its own revenues may be disbursed,
distributed, realigned, or used in any manner.
Re-gravelling of roads was prohibited as it was seen as an ineffective means of road improvement, leaving the
roads easily eroded during the rainy season. It is also prone to corruption as its hasty and incomplete
implementation can be easily justified.
Page 70 of 88
From 2011 to 2015, the DPWH allocated P164.82 billion for roads, bridges, and other
infrastructure projects in Mindanao. Of this amount, P13.74 billion was allotted for
ARMM projects. From July 2010 to March 2015, the DPWH constructed, improved,
and rehabilitated a total of 5,545 km of roads and 24,224 lm of bridges in Mindanao.
Table 24: Infrastructure Funding for Mindanao
Region
2011
2012
Regions IX-XIII
12.97
18.44
ARMM
1.02
1.52
Total Mindanao
13.99
19.96
Source: DPWH
2013
25.19
2.40
27.59
2014
34.35
3.23
37.58
2015
60.14
5.57
65.70
Total
151.09
13.74
164.82
In 2014, for the first time in the ARMM, an international business conference was
held in Tawi-Tawi that was attended by more than 400 businessmen from Malaysia,
Brunei, Indonesia, and Japan. This resulted in investment pledges with combined
amount of P974 million for various industries, such as palm oil, power generation,
and seaweeds trading. This also gave rise to exploratory discussions on investment
ventures on the importation of grains, coffee, and coconut products, among others.
The event manifests increasing investor interest and confidence in the region, and
illustrates the potentials for growth in the ARMM brought about by peace and good
governance in the region.
Table 25: Select Economic Indicators in ARMM
2010
Investments registered
0.482
(in P billion)
Taxes collected (in P billion)
0.77
Jobs generated
4,139
Source: ARMM-ORG
2011
0.421
2012
1.075
2013
1.95
2014
4.407
0.74
4,092
0.85
4,288
1.25
4,913
1.45
7,402
4. Advanced and Protected Human Rights

To complement its efforts in ensuring peaceful and safe communities, the
government implemented programs and enforced measures toward the
advancement and protection of human rights.
Promoted a Culture of Respect for Human Rights
Demonstrating its commitment to resolve cases of extra-legal killings, enforced
disappearances, and torture and promote a culture of respect for human rights, the
government created in 2012 a high-level inter-agency committee201 that introduced
innovations in case resolution, such as the institution of a cooperative mechanism
between prosecutors and law enforcers, where designated prosecutors would lead
special teams that investigate,202 prosecute, and monitor new, existing, and unsolved
cases.
201
202
IAC is composed of the heads of DOJ, DILG, DND, OPAPP, OPA, NBI, PNP, AFP, and the PHRC, to address
extra-legal killings and other grave human rights violations. The DOJ chairs the IAC.
Including the collection and preservation of evidence, documentation, and identification of suspects
Page 71 of 88
The enactment of landmark legislation also paved the way for addressing human
rights violations. The 2012 Anti-Enforced or Involuntary Disappearance Act (RA
10353), the first of its kind in Asia, institutes preventive measures for enforced
disappearances, and provides a mechanism for reparation and redress. The 2013
Human Rights Victims Reparation and Recognition Act (RA 10368) recognizes the
heroism and sacrifices of victims of human rights violations committed during the
Marcos regime and acknowledges the States obligation to provide reparation to them
and/or their families.
Complementary to these, the government undertook critical efforts to improve
institutional responses to human trafficking through the Inter-Agency Council Against
Trafficking headed by the DOJ. The 2012 Expanded Anti-Trafficking in Persons (TIP)
Act (RA 10364) further strengthened the governments hand as it expanded the
definition of TIP, criminalized cases of attempted TIP, and removed the confidentiality
protection previously extended to the accused, among others.
From 2005 to March 2015, a total of 187 human trafficking convictions involving 209
perpetrators were handed down; 158 or 84 percent of these convictions involving 179
perpetrators were secured under this Administration. Twelve (12) of these 179
perpetrators were successfully prosecuted by the State for the crime of attempted
TIPa clear indication that the expanded anti-TIP law has indeed given more teeth
to the Philippines campaign against human trafficking.
Within a year from the start of the Administration, the US raised the countrys
scorecard on TIP to Tier 2 status203 in the 2011 TIP Report from the Tier 2 Watch
List204 in 2009 and 2010, indicating that more traffickers were prosecuted and more
convictions were secured.
The Walk Free Foundation, an Australia-based global human rights organization,
also ranked the Philippines as number one in Asia, number three in the Asia-Pacific,
and number 29 globally, out of 167 countries, in terms of government efforts and
programs to combat TIP in its 2014 Global Slavery Index.205 The first edition of the
report released in 2013 also cited the countrys innovative approach to combat TIP
and other forms of exploitation.
203
204
205
The US State Department classifies countries according to Tiers. Placed under Tier 2 are countries whose
governments do not fully comply with the Trafficking Victims Protection Acts (TVPA) minimum standards, but are
making significant efforts to bring themselves into compliance with those standards.
Countries placed under Tier 2 Watch List are those whose government do not fully comply with the TVPA
minimum standards, but are making significant efforts to bring themselves into compliance with those standards.
However: a) The absolute number of victims of severe forms of trafficking is very significant or is significantly
increasing; b) There is a failure to provide evidence of increasing efforts to combat severe forms of trafficking in
persons from the previous year; or c) The determination that a country is making significant efforts to bring itself
into compliance with minimum standards was based on commitments by the country to take additional future
steps over the next year.
The Global Slavery Index provides an analysis of the prevalence of modern slavery in terms of percentage of
national population and the number of people living in modern slavery. It also includes an analysis of what
governments are doing to eradicate modern slavery and looks at the contextual factors that make people
vulnerable to modern slavery.
Page 72 of 88
Ensuring the Welfare of Filipinos Abroad

The government continues to promote and protect the welfare of Filipinos abroad. It
concluded 40 labor and other related agreements, which regulated their deployment
and employment, provided them access to education and training resources on their
rights and well-being, and upheld their social security rights and benefits, among
others.
In July 2010, the government amended the 1995 Migrant Workers and Overseas
Filipinos Act (RA 8042) through RA 10022206 to facilitate the deployment of Filipino
workers only to countries with protective laws for migrant workers, that are signatories
to international conventions on the protection of migrant workers, or with bilateral
labor agreements with the Philippines.
On the basis of certifications issued by the Philippine Foreign Service Posts, the
POEA Governing Board declared 194 out of 206 receiving countries as having
sufficient laws or multilateral instruments that guarantee the protection of migrant
workers rights, including the Kingdom of Saudi Arabia, Jordan, and Lebanon, with
which the Philippines entered into bilateral agreements for the protection of overseas
Filipino domestic workers.
In 2012, the Philippines became the second country to ratify the ILO Convention No.
189 on Decent Work for Domestic Workersthe first international instrument
recognizing domestic workers as having human and employment rights entitled to
protection under the law.
As of December 2014, the number of OFs207 has decreased by more than 441,000
compared to the number of OFs in 2011.
Figure 19: Decreasing Number of OFs (20102014)
9,512,150
9,600,000
9,400,000
9,200,000
9,156,259
9,092,679
9,070,429
2013
2014
9,000,000
8,770,395
8,800,000
8,600,000
8,400,000
8,200,000
2010
2011
2012
Source: DFA
206
207
An Act Amending RA 8042. Salient protective measures of this law include: a) emphasis on stronger bilateral and
multilateral relations with receiving countries; b) clarification of the process of certification of host countries and
processing of workers documents; c) institutionalization of the role of LGUs and increase in the capability of
POEA lawyers, among others, in anti-illegal recruitment programs; and d) additional required personnel for
Overseas Filipino Resource Centers.
DFA takes into account all categories of Filipinos overseas including permanent residents (not foreign citizens),
family members, and workers.
Page 73 of 88
According to DFA, the reasons for the decline in the numbers include: a) stringent
immigration policies imposed by the host governments, b) political situations affecting
the safety of OFs, and c) repatriation efforts of the government in crisis-stricken
countries.
Despite the increased number of OFs who returned during the Aquino Administration,
unemployment rate in the country continues to decline. This means that the economy
was able to absorb these returning OFs as they were able to find employment in the
country.
Table 26: Unemployment Rates (20102014)
Year
Unemployment Rate
2010
7.4
2011
7.0
2012
7.0
2013
7.1
2014
6.8a
a
The annual estimate for 2014 is preliminary and excludes Region VIII.
Source: NEDA
From 2010 to June 2015, political upheavals in some countries in the Middle East led
to the mass repatriation of OFs.208 From July 2010 to June 2015, 22,161 OFs were
repatriated to ensure their safety.
Table 27: Other Assistance to OFs
Program
Description
Assistance to Nationals
Provision of funds for the repatriation of OFs
Fund
in distressa
Anti-Trafficking in
Assistance to victims through endorsement of
Persons
their cases to law enforcement agencies of
the Philippines and the OFs receiving
countries
Assistance to OFs with
Provision of legal assistance and welfare
Death Penalty Cases
assistanceb
Assistance to OFs with
Drug Smuggling Cases
a
b
Number of Assisted OFs

58,165
(September 2010 to June 2015)
4,104
(July 2010 to June 2015)
70
1,513
Excluding the mandatory repatriation of OFs from high-risk countries

Welfare assistance extended includes: a) jail visitation; b) provision of personal needs (such as winter clothing
and phone cards); and c) provision of airfare and visa facilitation for immediate family members.
Source: DFA
Aside from these, the government also provides returning OFWs, especially those
who are repatriated, with various forms of assistance to facilitate their reintegration
into the country and help provide a sense of well-being and security. Under the
DOLEs Assist WELL (Welfare, Employment, Livelihood, and Legal) Program, 6,563
208
The government had raised Alert Level 4 (Mandatory Repatriation) for the following countries: Egypt (2011 and
2013), Iraq (2014), Libya (2011 and 2014), Syria (2011), and Yemen (2011 and February 2015). Mandatory
repatriation of OFs in Iraq, Libya, Syria, and Yemen is still ongoing. The other three alert levels that the
government adopts are the following: Alert Level 1 (Precautionary Phase), which advises the OFs to take
necessary precautions; Alert Level 2 (Restriction Phase), which advises the OFs to restrict non-essential
movements, avoid public places, and take extra precaution; and Alert Level 3 (Voluntary Repatriation), which
entails the voluntary repatriation of OFs.
Page 74 of 88
returning OFWs who sought assistance209 were provided with assistance such as
temporary shelter, transportation services, legal assistance, job placement or access
to livelihood capital from the start of implementation in July 2014 to 03 July 2015.
The government also took decisive measures to address the concerns of the
European Maritime Safety Agency (EMSA) on the Philippines compliance with the
1978 Standards of Training, Certification, and Watchkeeping (STCW) Convention for
Seafarers. In particular, EMSA expressed concerns on the compliance of Maritime
Higher Education Institutions (MHEIs) with the National Quality Standards System
(NQSS) and the implementation of Management-Level Courses (MLCs). These
concerns have been identified in EMSAs audits since 2006, but the previous
administration did not exert serious efforts to address them.
If the country fails to address EMSAs concerns, the EU may revoke its recognition
of Philippine-issued STCW certificates for officers. This may lead to the loss of
employment of approximately 15,000 Filipino seafarer officers on EU-flagged
vessels; and the loss of confidence in the countrys STCW system, possibly triggering
audits by other major ship-owning states and putting at risk not only the 80,000
Filipino seafarers in EU-flagged vessels (both officers and non-officers) but all the
401,826 Filipino seafarers deployed worldwide in 2014.
Recognizing the importance of preventing the withdrawal of EU recognition, this
Administration designated MARINA as the single maritime administration responsible
for the implementation and enforcement of the STCW Convention through the
issuance of EO No. 75, series of 2012 while working with Congress, which passed
RA 10635210 in March 2014. The law consolidated STCW functions under MARINA,
improving policy coordination, formulation, and enforcement, as close to a dozen
agencies were handling STCW functions prior to the passage of the law. The situation
in the past made it difficult to effectively monitor compliance of MHEIs with the NQSS
and ensure the quality of MLC implementation, leading to EMSAs concern.
In addition, MHEIs and maritime training institutions were closely monitored. A list of
institutions compliant with the NQSS was published and a cadre of full-time
inspectors was appointed to monitor and audit the quality of schools. MARINAs
STCW office also earned ISO certification from Bureau Veritas211 in July 2015,
merchant marine officers were appointed as full-time MARINA employees, and the
12-month on-board training of officers required by the STCW convention is strictly
monitored and tracked.
EMSA will deploy another Audit Team anytime from October 2015 to February 2016
to verify the countrys compliance.
209
210
211
Of which 6,200 were from Libya and 363 were from Yemen
An Act Establishing MARINA as the Single Maritime Administration Responsible for the Implementation and
Enforcement of the 1978 International Convention on Standards of Training, Certification and Watchkeeping for
Seafarers
A global company in testing, inspection and certification services
Page 75 of 88
5. Reformed the Justice Sector

To ensure coherent and effective sectoral approach to the administration of justice,
the government institutionalized212 the Justice Sector Coordinating Council (JSCC)
composed of the Supreme Court, the DOJ, and the DILG. In November 2014, the
JSCC launched the Justice Zone to address delays and inefficiencies in the justice
system through closer coordination among law enforcement officers, prosecutors,
judges, and public defenders, from case build-up to post-judgment.
A key reform project in the Justice Zone is the eSubpoena, which is a web-based
information system that facilitates the issuance and expedites the transmittal of
subpoenas from the courts to concerned police officers.
Complementary to these efforts, the Judiciary also implements the following:
Hustisyeah, a case decongestion program launched in 2013, aims to reduce

overall case dockets nationwide by 20 percent up to 2016, by concentrating on
175 heavily congested courts throughout the country. In 2014, the Program
registered a 30 percent reduction of caseload for Quezon City, where it was
piloted.
The eCourts, an automated case management system launched in 2013, involve

the electronic capture, storage, management, and retrieval of essential case data
to enhance efficiency and productivity through digitizationreducing paperwork,
shortening the processing time, enabling electronic assessment of court fees, and
allowing electronic raffling of cases to judges.
As of May 2015, there are already 73 operational eCourts covering all the courts
in Quezon City, Angeles City, and Lapu-Lapu City. By 20162017, it is envisioned
that eCourts will be in 287 trial courts handling about 30 percent of the total
caseload of the Philippine court system.
A high-impact component of the eCourts, the Automated Hearing System
captures every activity213 electronically during trial and allows for the immediate
release of the orders and subpoenas to the parties present in court, saving at
least one month in waiting time if the service is done via snail mail. As of July
2015, the system is being implemented in 58 Quezon City trial courts and all 15
Angeles City and Lapu-Lapu City courts.
212
213
Assisting courts program aims to address the disproportionate allocation of courts

in various parts of the country by having less congested courts help overburdened
courts from nearby jurisdictions.
While the JSCC was established in April 2010 under a Joint Declaration by the Supreme Court, DOJ, and DILG,
it was only in February 2011 that the Council first convened. Recognizing the importance of strengthening the
rule of law in carrying out the governments responsibilities and obligations, the Administration included the
institutionalization of the JSCC in the Philippine Development Plan 20112016.
This includes orders issued by the judge, minutes of the hearing conducted, judges notes on testimony taken,
markings of evidence, issuance of writs and other court processes.
Page 76 of 88
INTEGRITY OF THE ENVIRONMENT

ADAPTATION AND MITIGATION
AND
CLIMATE
CHANGE
Alongside its efforts to achieve sustained economic growth and to improve the quality of
life of all Filipinos, the Administration also recognized the urgency of preserving the gains
of national development for future generations. In line with this, initiatives toward
environment protection and climate change adaptation and mitigation were undertaken.
1. Ensured the Conservation and Protection of Natural Resources
The government showed strong commitment to ensure that present and future
generations benefit from the countrys natural resources and live in a healthy
environment.
Protected Forest Resources
In 2011, the government implemented a massive anti-illegal logging campaign to
allow the natural regeneration of forests and protect threatened habitats and
sanctuaries of endangered and rare species. The campaign reduced the number of
cities/municipalities considered as illegal logging hotspots214 by 88 percent, from 197
at the start of the campaign to 23 as of 20 July 2015. It also led to the confiscation of
30.71 million board-feet of illegally cut and processed logs and forest products
nationwide. From these, 146,471 school arm chairs and furniture were donated to
DepEd, and 388 school buildings were repaired.
The government launched the National Greening Program (NGP), which aims to
plant 1.5 billion trees215 in 1.5 million ha216 from 2011 to 2016. After more than four
years of reforestation, some 637.80 million seedlings were planted in 1.1 million ha,
increasing forest cover from 6.8 million ha to 7.86 million ha. The NGP generated 2.4
million jobs, benefiting 342,045 individuals as of 20 July 2015.
214
215
216
Refer to areas in the country where illegal logging is rampant

The NGP targets to plant more than 350 million seedlings in 350,000 ha in 2015 and the remaining 560 million
seedlings in 330,648 ha for 2016. This will be accomplished in partnership with the Community-Based Forest
Management Peoples Organizations through the use of mechanized seeders to be strategically located in various
provinces such as Camarines Sur, Surigao del Sur, and Negros Oriental.
Since 2011, NGP has exceeded its targeted land area due to the inclusion of timber, mangrove, and beach forest
varieties, which require larger planting areas (in addition to high value crops like coffee, cacao, and rubber). NGP
has covered 128,558 ha of the 100,000 ha target in 2011; 221,763 ha of the 200,000 ha target in 2012; 333,160
ha of the 300,000 ha target in 2013; and 334,302 ha of the 300,000 ha target in 2014.
Page 77 of 88
Figure 20: Area Reforested (in ha) (19862015)

1,200,000
1,098,163
1,000,000
800,000
600,000
553,098
400,000
286,921
211,005
143,611
200,000
0
C. Aquino
Ramos
Estrada
Arroyo
B. Aquino
Source: DENR
To support the preservation and protection of forest lands in national and local land
use planning and management, the DENR completed the Forestland Boundary
Delineation of 81 provinces, covering 88,666 km. This provides proper zoning to
determine areas for protection and promote socio-economic development (e.g.,
farming, wood plantation) outside the forest limits.
Enforced Responsible Mining
The Mining Industry Coordinating Council (MICC) was established through EO No.
79, s. 2012217 to promote responsible mining, institute a more equitable revenue
sharing scheme to better support national and local growth, and make the industry
more transparent and accountable.
In 2014, the MICC completed the Go and No-Go Zone maps to delineate mining
areas from those where mining is prohibited, such as prime agricultural lands, tourism
development areas, Strategic Agricultural and Fisheries Development Zones, and
those under the 1992 NIPAS Act (RA 7586).218 Accessible to the public through the
website of the DENR-Mines and Geosciences Bureau, these maps serve as guide in
all planning and decision-making processes of concerned government agencies.
Through the MICCs efforts, the Philippines was admitted as a candidate country by
the Extractive Industries Transparency Initiative (EITI)219 International Board on 22
May 2013 at its Global Conference in Sydney, Australia. In December 2014, the PHEITI submitted its first country report, disclosing payments from 30 mining companies
and six oil and gas companies for 2012, covering total revenues of P52.7 billion. The
217
218
219
Institutionalizing and Implementing Reforms in the Philippine Mining Sector Providing Policies and Guidelines to
Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources
An Act Providing for the Establishment and Management of National Integrated Protected Areas System, Defining
Its Scope and Coverage, and for Other Purposes
The EITI is a global standard that promotes an open and accountable management of natural resources. It aims
to provide a level playing field that requires companies to disclose all information and makes them benefit from
an improved and more stable investment climate.
Page 78 of 88
PH-EITIs first cycle of implementation was cited as best global practice by the EITI
international secretariat due to the level of engagement of all the sectors.
2. Improved Adaptive Capacities of Communities
To address the countrys vulnerabilities to the effects of climate change, the
government took a proactive and holistic approach to disaster risk reduction and
management (DRRM) and climate change adaptation and mitigation (CCAM), in
order to build a culture of safety and awareness.
Mainstreamed DRRM and CCAM in Governance
The government put in place the policy framework and implementing mechanisms for
DRRM and CCAM. The National DRRM Plan was formulated to provide a
comprehensive, all-hazards, multi-sectoral, inter-agency, and community-based
approach to DRRM. Likewise, the National Climate Change Action Plan was
formulated to build the adaptive capacity and increase the resilience of natural
ecosystems. In line with these, LGUs were mandated to ensure that DRRM and
CCAM initiatives are integrated into their development plans, programs, and
budgets.220
For FY 2015, a total of P128.8 billion was allocated to address climate change, about
98 percent of which was for adaptation projects such as flood control and
management.
Enhanced Disaster Risk Identification and Assessment
Recognizing the vulnerabilities of the country to climate change, the government
focused on improving its weather forecasting capability. It more than quadrupled
PAGASAs budget from P766 million in 2010 to P3.44 billion in 2015, the bulk of
which was used to modernize and upgrade its equipment. This resulted in notable
improvement in its performance, particularly for the past six tropical cyclones221 from
January to July 2015. It recorded an average forecast track error of 97.4 kmbetter
than the 120-km error threshold of the World Meteorological Organization.
PAGASA is also able to generate accurate data (i.e., wind speed and rainfall amount)
of an approaching tropical cyclone through the 12 operating Doppler radars, 222 the
220
221
222
As of 31 March 2015, a total of 1,373 LGUs (74 provinces, 138 cities, and 1,161 municipalities) of the total 1,592
LGUs (excluding ARMM) have organized their DRRM Councils. On the other hand, 1,248 LGUs (68 provinces,
135 cities, and 1,045 municipalities) have formulated their DRRM plans.
These are tropical cyclones Amang (Mekkhala), Betty (Bavi), Chedeng (Maysak), Dodong (Noul), Egay (Linfa),
and Falcon (Chan-hom).
Including the Doppler radar in Jaro, Iloilo, the operation of which was postponed due to delayed release of funds.
The following radars will be installed and/or made operational: a) radar in Guiuan, Eastern Samar totally damaged
by typhoon Yolanda (Haiyan) will be operational in December 2015; b) three radars (one radar each in Busuanga,
Palawan; Zamboanga City, Zamboanga; and Daet, Camarines Norte) will be operational by end-2016; and c) four
radars in areas that are currently being reviewed.
Page 79 of 88
use of satellite images, and an X-Band Mobile Weather Radar,223 which covers areas
outside the range of operational radars.
The P6.10 billion Nationwide Operational Assessment of Hazards Project (Project
NOAH)224 launched in 2012 provided for a more accurate, integrated, and responsive
disaster prevention and mitigation system, especially in high-risk areas throughout
the Philippines. Under the Project, various hydrometeorological devices have been
installed nationwide, including 853 Automated Rain Gauges (ARGs), 479 Water
Level Monitoring Stations (WLMS), and 86 Automated Weather Stations (AWS) as of
June 2015. These devices measure rainfall, temperature, humidity, pressure, and
wind direction and speed. Through this Project, a six-hour lead time warning against
impending floods is now possible. This enabled Marikina City to record zero casualty
during typhoon Maring in 2012 and the series of monsoon rains or Habagat in 2013
a far cry from the 181 casualties225 recorded during typhoon Ondoy in 2009.
Maps containing more detailed information on hazards and risks were generated.
These include the Enhanced Landslide Hazard Maps for all 81 provinces, Metro
Manila, and Zamboanga City;226 the Multi-Hazard Maps of the 28227 most disasterprone provinces;228 the 1:10,000 Scale Geohazard Maps for all 1,634 cities and
municipalities;229 and the Light Detection and Ranging (LiDAR) Maps of the
floodplains of the 18 major river systems and four critical areas.230 In addition, Storm
Surge Maps have been generated for all 66 vulnerable provinces 231 and Metro Manila
as of February 2015, while the Multi-Hazard Maps of the Greater Metro Manila Area
(GMMA)232 will be completed by December 2015.
223
224
225
226
227
228
229
230
231
232
Intended for Luzon but currently stationed in Guiuan, Eastern Samar. This will be redeployed when the Doppler
radar in Guiuan is already functional. Two more X-Band radars for Visayas and Mindanao are expected to be
delivered within the second quarter of 2016.
Project NOAH also provides information on landslides and storm surges, among others. The Projects
international commendations include: Most Advanced E-Governance Disaster Risk Reduction Tool by the UN
during the E-Governance and Disaster Risk Reduction Summit held in South Korea in March 2015; and the 2014
Geospatial World Excellence in Policy Implementation Award by the Geospatial World Forum in Switzerland in
May 2014.
With 73 dead and 108 injured
A separate map was produced for Zamboanga City based on its historical data of susceptibility to landslides.
Abra, Agusan del Sur, Antique, Aurora, Benguet, Bohol, Cagayan, Catanduanes, Cavite, Dinagat Islands, Eastern
Samar, Ilocos Norte, Ilocos Sur, Iloilo, Isabela, Laguna, Leyte, Northern Samar, Nueva Vizcaya, Pampanga,
Quirino, Rizal, Southern Leyte, Surigao del Norte, Surigao del Sur, Zambales, Zamboanga del Sur, and
Zamboanga Sibugay
Completed in 2012
The geographic features and attributes in the 1:10,000 maps not reflected in the previously completed 1:50,000
geohazard maps (20062010) include identification of landslide debris, accumulation zones, soil erosion, flood
depth, and flow direction. These maps provide information on the various susceptibilities of communities to
flooding and landslides up to the barangay and sitio or purok level.
Under Project NOAHs Disaster Risk Exposure and Assessment for Mitigation-Light Detection and Ranging
(DREAM-LiDAR) Program, the 18 major river systems were prioritized as flooding in these river systems from
1981 to 2006 accounted for a total of P5.6 billion in damage, which translated to about 70 percent of the total
damages from flooding and affected 6.2 million Filipinos. The four critical sites (i.e., Infanta, Lucena, Bohol, and
Boracay) were requested by their respective LGUs due to their history and propensity for flooding in recent years.
Shariff Kabunsuan, which was reverted to Maguindanao in 2008, is the remaining area that has yet to be storm
surge-mapped due to security reasons.
To include the provinces of Laguna, Cavite, Bulacan, and Rizal. Multi-hazard maps of the provinces of Laguna,
Cavite, and Rizal generated in 2012 were enhanced by integrating major flooding events (e.g., tropical storm
Cosme [Halong] and typhoon Feria [Nangka] in 2008 and 2009, respectively), which happened in these areas.
Page 80 of 88
Investing in Flood Management

To mitigate flooding in highly urbanized and flood-prone cities and areas, the
government shall implement structural mitigation measures worth P351.72 billion
under its Flood Management Master Plan (20122035) for the entire Metro Manila
and its surrounding areas, particularly Rizal, Laguna, and parts of Bulacan.
In keeping with the Plan, P31.07 billion was allocated from 2011 to 2015 for various
flood control projects, which include:
The completed Pasig-Marikina River Channel Improvement Project Phase II,
which relieves 170,000 population from flood and lessens damages on
infrastructures and facilities by 37 percent;
The ongoing Pasig-Marikina River Channel Improvement Project Phase III, which,
when fully completed by June 2017, is estimated to reduce: flood areas by 18
percent or equivalent to 750 ha (i.e., from 4,200 ha to 3,450 ha of flooded areas);
annual flood damages by P14.3 billion (i.e., from P80.6 billion to P66.3 billion),
and affected population by 200,000 (i.e., from 1.2 million to 1 million);
The ongoing Blumentritt Interceptor Catchment Area, to be completed in March
2016; and
P5-billion high-impact projects, for completion in November 2015, which include
the Valenzuela-Obando-Meycauayan (VOM) Project in NCR, the San FernandoSto. Tomas-Minalin Tail Dike Project in Region III, and the Sta. Maria-Mabitac
River Project in Region IV-A.
Other major flood management projects include the Pinatubo Hazard Urgent
Mitigation Project Phase III, which is expected to lower flood levels and shorten flood
duration in the city of San Fernando and municipalities of Guagua, Sasmuan,
Bacolor, and Lubao in Pampanga. The Project is targeted to be completed in October
2015.
The Flood Risk Management Project for Cagayan River, Tagoloan River in Misamis
Oriental, and Imus River (FRIMP-CTI) in Cavite will also be implemented from March
2016 to February 2019. The Cagayan River sub-project will address bank erosion
that leads to loss of economically high-value lands in Tuguegarao City and parts of
Cagayan Province. Under the Tagoloan River sub-project, the completion of the dike
system in the lower Tagoloan River Basin will reduce flooding. The Imus River subproject will reduce the flood flow in the area through the construction of two off-site
retarding basins.
Improved Disaster Preparedness and Response
The improved risk identification and assessment tools enabled the government to
establish proactive and pioneering measures to anticipate, prepare, and cope with
disasters. In particular, the Pre-Disaster Risk Assessment (PDRA), institutionalized
in 2014, strengthened coordination channels between and among agencies and
LGUs as they manage approaching disasters. Based on DOSTs forecasts, the
Page 81 of 88
PDRA core group233 identifies hazard-specific, area-focused, and time-bound

interventions. Among these are the prepositioning of resources and conduct of preemptive evacuations by the concerned government agencies and LGUs, in
partnership with private organizations.
Improved disaster preparedness and response resulted in zero casualty during
typhoon Chedeng (Maysak)234 and the recent severe tropical storm Egay (Linfa).235
Further, the country earned commendations from international organizations (e.g.,
UN Development Programme and the UN Humanitarian Country Team) for its
preparedness and disaster management measures during typhoon Ruby (Hagupit)236
wherein casualties and damage to private and public properties, and the economy
were minimal compared to typhoon Yolanda (Haiyan), which is relatively similar in
terms of track and strength.
The PDRA concept was incorporated in the Sendai Framework for Disaster Risk
Reduction (DRR) 20152030, which was adopted during the Third UN World
Conference on DRR held in Sendai, Japan in March 2015. The Sendai Framework,
successor to the Hyogo Framework for Action 20052015, aims to guide nations,
communities, and other actors in managing risks and preventing the creation of new
risks through investments in DRR initiatives, among others.
As a component of PDRA, Oplan Listo was launched in 2014 to further strengthen
the capacity and level of preparedness of LGUs. Under this initiative, Listo Teams 237
were created in each municipality/city, and LGU Disaster Preparedness Manuals
were developed (i.e., Checklist of Early Preparations for Mayors, Checklist of Critical
Operations for Mayors, and Checklist for Municipal Local Government Operations
Officers, Chiefs of Police and Fire Marshalls). Oplan Listo contributed to the improved
government response to typhoon Chedeng.
The government pursued efforts to heighten public awareness and cooperation in
preparing for disasters. Through timely and intensified dissemination of hazard
warnings and advisories, in particular, the government made available rainfall
forecasts covering 165 major cities and municipalities238 at the NOAH website
(www.noah.dost.gov.ph) and mobile application (Android and iOS) and ClimateX
database (climateX.ph) since 22 July 2013 to help disseminate flood warnings. The
new version of the NOAH website (NOAH 2.0) provides accessible real-time disasterrelated information such as color coded rainfall warnings and flood scenario for
233
234
235
236
237
238
Composed of representatives of the NDRRMC Vice-Chairs namely the DOST Secretary as the Vice-Chair for
Disaster Prevention and Mitigation, the DILG Secretary for Disaster Preparedness, the DSWD Secretary for
Disaster Response, and the NEDA Director General for Disaster Rehabilitation and Recovery
Which hit the country in April 2015
Which hit the country in July 2015
Which hit the country in December 2014
Composed of the Local Chief Executive, Local DRRM Officer, Chief of Police, Fire Marshall, and Municipal/City
Local Government Operation Officer
These are the 144 cities and 21 municipalities supplemented/covered by the existing radars and sensors and
have the ability to receive data transmitted by said devices.
Page 82 of 88
specific locations239 as well as hazard maps for landslides, floods, and storm surges
nationwide.
To better prepare for events similar to typhoon Yolanda, PAGASA modified its
tropical cyclone warning system starting May 2015 by adopting five typhoon signals,
including a Super Typhoon (signal no. 5) category for very strong typhoons with 220
km/hr or stronger winds.
The government also launched in May 2015 the Valley Fault System Atlas in
preparation for a possible 7.2 magnitude earthquake in the GMMA, which could
cause loss of lives and damage amounting to P2.3 trillion in Metro Manila. The Atlas,
which includes 33 map sheets in various scales,240 identifies in detail the areas
traversed by an active fault system in the GMMA. A digital copy of the Atlas is
accessible on the websites of the PHIVOLCS and NDRRMC.
3. Pursued Building Disaster Resilient Communities
The rehabilitation and recovery efforts of the Administration are guided by the Build
Back Better principle that focuses on long-term, sustainable efforts to restore
normalcy in the lives of affected people, strengthen their adaptive capacities, and
reduce their vulnerabilities to future hazards.
Typhoon Yolanda (Haiyan)
In November 2013, typhoon Yolanda, considered as the strongest tropical cyclone to
ever make landfall in recorded history, severely affected about 1.47 million families
in 171 municipalities and cities in 14 provinces241 of six regions242 resulting in
damages amounting to P89.6 billion.
Through well-coordinated government-led efforts, the country successfully
transitioned from relief to rehabilitation phase in eight monthsa feat internationally
recognized as faster than most countries that experienced similar disasters. Three
days after Yolandas landfall, all affected airports and sea ports resumed
operations.243 Within a week, power was fully restored in Romblon, Negros Oriental,
Oriental Mindoro, and Siquijor. In less than two weeks, more than 100 stores
reopened in Leyte, Southern Leyte, Samar, Eastern Samar, and Northern Samar.
Within the same period, banking services also started to resume in Tacloban City.
239
240
241
242
243
Red rainfall advisory means evacuation is necessary as serious flooding is expected in low-lying areas; Orange
rainfall advisory means that evacuation is possible as flooding may occur; and Yellow rainfall advisory means
monitoring of weather is necessary as flooding is possible.
Metro Manila: 1:5,000 scale with 22 map sheets; Laguna and Cavite: 1:10,000 with 10 map sheets; and Bulacan
and Rizal: 1:50,000 with 1 map sheet
Palawan, Masbate, Aklan, Antique, Capiz, Iloilo, Negros Occidental, Cebu, Biliran, Eastern Samar, Leyte,
Western Samar, Southern Leyte, and Dinagat Islands
Regions IV-B, V, VI, VII, VIII and CARAGA
Excluding Estancia Port
Page 83 of 88
Yolanda-affected areas have shown significant progress towards rehabilitation and

recovery through the holistic, focused, and sustainable interventions implemented
under the four thematic areas of the Yolanda Comprehensive Rehabilitation and
Recovery Plan (CRRP). As of 30 June 2015, the government has released P88.96
billion to fund various programs, projects and activities for social services,
resettlement and housing, livelihood, and infrastructure.
A total of 5,080 classrooms in various provinces244 or 31.8 percent of the targeted
15,984245 were repaired or rebuilt in accordance with the governments disasterresilient building designs. More than three million learning materials/textbooks or 58.4
percent of the targeted 6.47 million246 have also been distributed benefiting almost 2
million students. Likewise, a total of 269 health facilities247 or 44.8 percent of the
targeted 600 facilities248 were repaired to ensure that preventive and life-saving
interventions are available, particularly in hard-to-reach and underserved
communities.
Mindful of the immense hazards of disasters to life and property, the government
continues to ensure the long-term safety of affected families through housing and
resettlement assistance. More than 1 million families in safe zones will have their
houses repaired through the Emergency Shelter Assistance (ESA)249 within 2015.250
Further, 205,128 permanent houses that adhere to structural standards and are
located in safe zones will be constructed. As of June 2015, 6,165 houses in ten
provinces251 have been completed while another 67,277 will be completed within
2015.252
The government also provided affected individuals with employment opportunities.
DOLEs Emergency Employment Program provided 35,558 beneficiaries with wages
ranging from P2,600 to P8,460 for 10 to 30 days.253 Opportunities for sustainable
sources of income were also provided to a total of 74,203 individuals through training
and support interventions for small businesses.254 These beneficiaries are now
employed or self-employed, some of whom are earning average daily income
244
245
246
247
248
249
250
251
252
253
254
Completed classrooms are located in the provinces of Occidental Mindoro, Palawan, Romblon, Aklan, Antique,
Capiz, Iloilo, Negros Occidental, Cebu, Biliran, Eastern Samar, Samar, Leyte and Dinagat Islands.
All the remaining classrooms (6,561 being rebuilt/repaired, 10 under procurement, and 4,333 not yet started) will
be completed by end-2015.
A total of 2.69 million learning materials/textbooks are being distributed and to be completed within 2015.
Composed of 199 BHSs, 53 RHUs, 14 LGU hospitals, and 3 DOH facilities located in Eastern Samar, Western
Samar, Leyte, Southern Leyte, Iloilo, Capiz, Aklan, and Palawan.
Another 122 health facilities (89 BHSs, 23 RHUs, 5 LGU hospitals, and 5 DOH facilities) are being repaired and
209 facilities (166 BHSs, 19 RHUs, 23 LGU Hospitals, and 1 DOH facility) are for procurement. These will be
completed by end-2016.
Provision of either materials or financial assistance
As of 15 June 2015, a total of 303,715 families have received ESA, with the assistance for the remaining 762,114
to be provided by end-2015.
Antique, Aklan, Capiz, Iloilo, Negros Oriental, Cebu, Leyte, Samar, Biliran and Eastern Samar
The remaining 115,596 houses and 16,090 houses are programmed for 2016 and 2017, respectively.
Wage depends on the prevailing minimum wage in the area.
Another 66,775 will be covered by the second quarter of 2016, of which 49,014 will be within 2015. These are
under DOLEs Integrated Livelihood Program, TESDAs trainings on livelihood and construction, and DTIs
Livelihood Seeding Program.
Page 84 of 88
reaching P1,134.255 Further, more than 700,000 farmers and fisherfolk benefited from
various government farming and fishing interventions such as boat
replacement/repair, and provision of marine engines, and distribution of palay seeds,
corn seeds, fertilizers, and farm tools.
Local economic activities also picked up with the restoration of key and major
connectivity infrastructures such as the 52.74 km of the targeted 107.24 km national
roads,256 730.09 lm of the targeted 1,852.53 lm of national bridges, 257 22 of the
targeted 56 seaport facilities,258 and 36 of the targeted 40 airport facilities.259
Bohol Earthquake
Bohol suffered the most on account of the 7.2 magnitude earthquake that shook some
areas in Western and Central Visayas Regions in October 2013. Deaths in the
province was more than 200 while damages amounted to almost P1.4 billion.
Through holistic interventions implemented by the government and other
stakeholders, the province is on the way to long-term recovery and rehabilitation.
A total of 64,725 families (100 percent of target) repaired their houses through the
provision of housing materials or financial assistance under the P388 million Home
Materials Assistance (HOMA) (38,801 families) and P259.24 million ESA (25,924
families) programs, respectively.
As of 25 June 2015, out of 8,083 families, a total of 1,637 are now living in permanent
houses.260 The houses261 for the remaining 6,446 families will be completed and
turned over within 2015.262
As part of immediate relief and rehabilitation, the government implemented the Cashfor-Work (CFW) Program, wherein 42,610 individuals263 earned an average of P269
per day for a 10-day work in the construction and repair of houses and community
facilities, among others. In addition, temporary employment was provided to 9,520
255
256
257
258
259
260
261
262
263
These are the beneficiaries engaged in ornamental plants/cut-flowers who were covered by DTIs Livelihood
Seeding Program.
Another 21.94 km will be repaired/reconstructed within 2015, 31.91 km by first quarter of 2016, and 0.65 km are
for funding.
Another 482.64 lm will be repaired/reconstructed within 2015 and the remaining 639.8 lm by the second quarter
of 2016.
One facility to be completed by August 2015, 21 are under procurement to be completed by June 2016, and the
remaining 12 are for funding.
Two facilities to be fully restored by January 2016 and the remaining two are for funding.
Located in Antequera, Balilihan, Buenavista, Calape, Carmen, Catigbian, Clarin, Corella, Cortes, Danao, Loon,
Maribojoc, Sagbayan, San Isidro, Sevilla, and Tubigon.
Including houses in Inabanga
The delay in the completion of the houses is due to, among others, tropical storm Seniang (Jangmi) in December
2014, which affected the transport of construction materials and actual construction. The provision of permanent
houses is undertaken in partnership with Habitat for Humanity Philippines Foundation, Inc.
Based on actual local needs.
Page 85 of 88
families, enabling them to earn 75 percent of the prevailing regional wage rate from
community-based projects under the Cash for Building Livelihood Assets (CBLA).264
Opportunities for sustainable and long-term employment were also created through
initiatives such as the Skills Training and Emergency Employment towards Recovery
in Bohol Program,265 which produced 795 graduates who constructed 32 houses with
their enhanced skills in carpentry, masonry, plumbing, and electrical installation and
maintenance. At present, the beneficiaries daily earnings range from P250 to P400
through special projects of DSWD, Habitat for Humanities, and other private
individuals.
Further, SSFs, such as the Bohol Fabrication Laboratory (FabLab)266 and the
Tubigon Raffia Loom Weaving Facility both launched in May 2014, spurred local
entrepreneurship, enabled innovation and collaboration, and improved the
competitiveness of Bohols creative sector. Bohol FabLab, the countrys first
fabrication laboratory SSF, provided capability building activities, training, and
product development, benefiting almost 300 individuals and more than 900 SMEs.
The beneficiaries of these two SSFs are earning P250 to P375 per day.
Economic activities were restored through the repair/reconstruction of damaged
critical connectivity infrastructures. The repair of the Tagbilaran Airport was
completed in 2014. In addition, 11 sea ports in Bohol (e.g., Tagbilaran, Tubigon,
Catagbacan, and Talibon) are in various stages of repair, all to be completed by the
third quarter of 2016.
Likewise, to preserve national heritage, the government completed in 2014 the
inventory and recovery of salvaged materials of the 16267 damaged heritage sites or
structures in Bohol.268 A restoration master plan and site-specific plans are currently
being formulated to be completed by October 2015. These will guide the actual
reconstruction/restoration that will commence in December 2015.
Typhoon Pablo (Bopha)
Typhoon Pablo was the strongest tropical cyclone that made landfall in the country
in 2012. It resulted in more than 1,000 deaths and more than P43 billion in damages,
with the provinces of Compostela Valley and Davao Oriental bearing its brunt.
264
265
266
267
268
Such as coconut seedling and seaweed planting, and agri-infrastructure rehabilitation

A convergent effort among TESDA, DOLE, DSWD, UNDP and LGUs
A platform for grassroots communities to translate their design ideas into physical forms with the help of
computers. It allows local manufacturers to make prototypes and products such as equipment, machinery, and
electronic gadgets; create scale models; illustrate graphic designs; and mass-produce products, among others
Baclayon Church Complex, Loboc Church Complex, Dauis Church Complex and Watchtower, Maribojoc Church
Complex, Loon Church Complex, Loay Church Complex, Dimiao Church Complex, Cortes Church Complex,
Panglao Watchtower, Panglao Church Complex, Alburquerque Church Complex, Bohol Provincial Capitol,
Balilihan Watchtower, Punta Cruz Watchtower, Pamilacan Island Watchtower, and Loay Watchtower
Heritage sites or structures are also being reconstructed/restored in Cebu (Sto. Nio de Cebu Basilica Complex,
Cebu Metropolitan Cathedral Complex, Magellans Cross Pavilion, Dalaguete Church Complex, Carcar Church
Complex, Sibonga Church Complex, Museo Sugbu Complex, and Fort San Pedro) and Eastern Samar (Guiuan
Church Complex, which was damaged by typhoon Yolanda).
Page 86 of 88
After almost three years, both provinces have regained their physical and economic
foothold and even strengthened resilience against future disasters. The rehabilitation
and recovery efforts for said provinces are guided by the Pablo Rehabilitation Plan
and supported by the P13.16 billion released by the government as of 31 March 2015.
A total of 47,179 families (100 percent of target) in safe zones have repaired their
houses, through the P344.96 million worth of financial assistance or construction
materials released under ESA.
As of May 2015, out of the targeted 59,580 houses, a total of 23,638 permanent
houses (39.7 percent of target)269 in safe zones are now occupied by family
beneficiaries. The remaining houses will be completed by end-2015 and turned over
by 2016. Further, students have been provided with a conducive learning
environment with the construction or repair of 1,606 classrooms (93.2 percent of
target). The remaining 117 classrooms are targeted to be completed by November
2015.
Economic activities are also in high gear through livelihood interventions that
provided sustainable sources of income to affected persons. The most notable
economic intervention is the Hot Pablo Chili Project,270 which generated domestic
sales from chili products amounting to more than P10 million. It also assisted 51
SMEs, trained 389 farmers, and generated 3,950 jobs.
A total of 1,429 families have also been enabled to start or expand their businesses
through capital seed funding271 amounting to almost P14 million. In addition, 41,552
families were provided with training272 on microenterprise management.
Typhoon Sendong (Washi)
Typhoon Sendong, which hit the country in December 2011, resulted in more than
1,000 deaths and damages amounting to P5.4 billion, with the cities of Cagayan de
Oro (CDO) and Iligan as the most severely affected areas.
A total of 10,405 families had their damaged houses repaired. Likewise, a total of
6,205 families (68.3 percent of the targeted 9,079) now live in disaster resilient
permanent houses located in the cities of CDO and Iligan, and Bukidnon while 2,874
families will be provided the same by end-2015.273
The government provided affected families with livelihood opportunities, through
among others, the Sustainable Livelihood Program, which provided 4,152 families
with capital assistance amounting to P22.61 million to enhance or develop their
microenterprises. Likewise, through the SSF Program, the Differently-Abled
269
270
271
272
273
The construction was hampered by, among others, tropical depression Agaton (Lingling) in January 2014, which
destroyed bridges and delayed the delivery of construction materials, and harassment of NPA elements (i.e.,
burning of construction equipment).
A total of P976,272.40 was disbursed for the Project by DTI.
Under the DSWDs Sustainable Livelihood Program
Conducted by public and private training institutions
The delay in the construction of the houses was due to the unavailability of relocation sites.
Page 87 of 88
Womens Network was granted assistance in the form of equipment like sewing
machines. The group earns an average monthly sales of P7,000.
Zamboanga City Crisis
The government also applied the Build Back Better principle in recovery efforts for
man-made disasters. To support 23,794 families affected and displaced by armed
conflict in Zamboanga City in 2013, the national government released P518.58 million
to DSWD as an immediate response.
Together with the UP Planning and Development Research Foundation, the
government crafted the Zamboanga City Roadmap to Recovery and Reconstruction
(Z3R). The Z3R, with an estimated total budget of P3.74 billion, focuses on the
redevelopment of the six crisis-affected barangays. As of July 2015, a total of P3.25
billion out of the P3.74 billion budget has been released to the NHA, DPWH, DSWD,
Local Water Utilities Administration, NEA, and DepEd, while the remaining P491.15
million is under review and ground validation. The P3.25 billion was used for the
following:
274
275
P1.98 billion for shelter assistance to 8,161 families under the following modes:
home material assistance (HOMA) and permanent shelter assistance to those
whose houses were directly affected. Of these, 1,661 families have been provided
HOMA as of June 2015. The remaining 6,500 families shall have permanent
shelter assistance, of which 1,550 permanent shelters have been completed and
provided to affected families. Another 1,650 permanent shelters are being
constructed, 2,093 shelters are under site development, while 1,207 units
(additional units programmed as buffer)274 are under procurement. The DPWH
and NHA target to complete the 3,743 units this 2015, while the additional 1,207
units will be completed by March 2016.
P878.16 million for land acquisition and development, particularly for
road/drainage right-of-way (ROW) and the construction, rehabilitation, and
widening of 8.37-km major and interior roads. Of these road projects, 1.34 km
have been completed as of July 2015. Completion of the major road works is
targeted in October 2015;275
P58.66 million were transferred to DSWD for cash assistance to affected families;
and
P335.28 million for OCD Region IX for the construction of access roads
(completed in August 2014), development of the Tulungatung resettlement site
(completed in December 2014), and power connections (35 percent complete as
of July 2015), among others.
In July 2014, additional units were programmed as buffer due to the difficulty in having the exact number of
families that needs assistance.
The delay of the Project is due to ROW issues.
Page 88 of 88
ANNEX
SELECT INFRASTRUCTURE PROJECTS
UNDER THE AQUINO ADMINISTRATION
A. COMPLETED AND ONGOING LONG-DELAYED PROJECTS

Basilan Circumferential Road, Basilan (P1.75 billion)
Upgrading/improvement of the 49.87 km section and
construction of four bridges (i.e., Gubawan, Bacung,
Guiong, and Limbo Candis Bridges) of the 131.90-km
circumferential road
Will reduce travel time around Basilan from 3 hours and 45
minutes to 2 hours and will benefit 450,000 residents
Started in 2000 but was delayed due to peace and order
problems, among others1
2. Aluling Bridge (P191.37 million)
180-lm bridge across the Abra River
Connects Cervantes, Ilocos Sur and Tadian, Mountain
Province and reduces travel time from 1 hour to 30 minutes
Conceptualized in 1978; work accomplished was damaged
in 1990 due to flooding
Reduced travel time from 1 hour to 30 minutes
3. Ternate-Nasugbu Road (P902.21 million)
6.05-km tourism road
Conceptualized in 1994
Connects Ternate, Cavite and Nasugbu, Batangas to
Metro Manila
Reduced average travel time between Manila and
Nasugbu, Batangas via Tagaytay City from 4 hours and 30
minutes to 3 hours
4. Candelaria Bypass Road Project, Quezon (P557.50
million)
7.29-km concrete road with three bridges (176 lm) and a
box culvert (60 lm) in Candelaria, Quezon
Conceptualized in 1998
Decongested traffic along the Maharlika Highway by 40%
11,645 of the 29,113 motorists daily diverted to the bypass
road
5. New Lullutan Bridge, Isabela (P772.92 million)
500.6-lm bridge across the Cagayan River, which replaced
a spillway bridge that was destroyed by typhoon Rosing in
1995
Connects Brgy. Calamagui 1st (East of the Cagayan River)
to Brgy. Lullutan (West of the Cagayan River, in the same
side as Ilagan City), located along the Ilagan-Delfin
Albano-Mallig Road in Ilagan City, Isabela.
Reduced travel time between Brgy. Calamagui 1st and
Brgy. Lullutan from 1.5 to 2 hours, to 5 minutes
Source: DPWH
1.
2
3
Status/Timelines
Implementation period:2 January 2012
December 2015
97.60% complete as of 24 July 2015; for
completion in December 2015
Ongoing works include the 1.16 km
approaches and three bridges (i.e.,
Bacung, Guiong and Limbo Candis
Bridges), which are 91% complete.
Reconstruction started in 1999 and
completed in March 2013
Phase I 1999 to 2003
Phase II to V 2005 to 2010
Phase VI 2011 to 2013
Construction started in January 2009

and completed in January 2014
Construction started in August 2008 and

completed in June 2012
Construction started in June 20113 and

completed in January 2015
Opened to traffic on 19 February 2015
Implementation delays were attributed mostly to the pull-out of AFP personnel securing the area for combat
operations.
Implementation period refers to the projects construction/systems development period.
The Project was originally planned for implementation under Contract Package II-A of the Urgent Bridges
Construction Project for Rural Development funded by the Japan International Cooperation Agency. However, due
to delays in procurement and the impending loan expiration, the construction of the New Lullutan Bridge was
undertaken using the national government funds.
B. HIGH STANDARD HIGHWAY NETWORK

1.
2.
3.
4.

Laguna Lakeshore Expressway-Dike Project, Laguna
(P122.8 billion)
47-km, four-lane expressway dike
Will connect Bicutan and Los Baos
Will reduce average travel time between Bicutan and Los
Baos from 1 hour and 30 minutes to 35 minutes
Will create 700 hectares of land asset
An annual average of P8.1 billion flood damages and
800,000 people experiencing flooding will be prevented
Cavite-Laguna Expressway (CALAX)
(P35.43 billion)
44.63-km, four-lane paved toll road and 12,207-lm bridges
Will connect CAVITEX in Kawit, Cavite and SLEXMamplasan interchange in Bian, Laguna
Will reduce average travel time between CAVITEX and
SLEX from 1 hour and 30 minutes to 45 minutes
North Luzon Expressway-South Luzon Expressway
(NLEX-SLEX) Connector Road (P17.8 billion)
8-km, four-lane expressway from C3 Road in Caloocan
City to PUP, Sta. Mesa, Manila and will connect to the
common alignment of Skyway Stage 3
Will reduce travel time between SLEX and NLEX from 1
hour and 30 minutes to 2 hours, to 15-20 minutes
Will reduce average travel time between Clark and
Calamba from 3 hours to 1 hour and 40 minutes
Will benefit 35,000 motorists/vehicles per day
Ninoy Aquino International Airport (NAIA) Expressway
Phase II (P15.86 billion)
7.15-km, four-lane elevated expressway from Sales
Avenue going to Andrews Ave., Domestic Road, MIA
Road, and ends at Macapagal Blvd./PAGCOR
Entertainment City
Will reduce average travel time between Skyway/SLEX
and NAIA Terminal 1 from approximately 24 minutes to 8
minutes and will benefit 80,000 travelers per day
Tarlac-Pangasinan-La Union Expressway (TPLEX)
(P21.38 billion)
88.85-km expressway from Tarlac to La Union, connecting
10 municipalities4
Will reduce average travel time between Tarlac City and
Rosario, La Union from 3.5 hours to 1 hour and will benefit
around 20,000 travelers per day
Status/Timelines
Approved by the NEDA Board in October
2014
Implementation period:
March 2016March 2023
Approved by the NEDA Board in

November 2013
Implementation period: July 2016July
2020

February 2015
Implementation
period:
November
2016November 2020
Approved by the NEDA Board in May

2012
Implementation period: January 2014
April 2016
Accelerated completion date for Phase
II-A (Macapagal Blvd.-MIA Road/NAIA
Terminals 1 and 2) is in October 2015
Ongoing, 40.11% as of June 2015
Approved by the NEDA Board in January

2010
Implementation period: July 2010
December 2016
Section 1 Tarlac City to Rosales,
Pangasinan (49.30 km) opened to traffic
in April 2014; section 2 Rosales to
Urdaneta City (13.72 km) opened to
traffic in February 2015; and section 3
Urdaneta to La Union (25.83 km) 7-km
section is ongoing
6. Central Luzon Link Expressway, Phase I (P14.94 billion) Approved by the NEDA Board in
30-km, four-lane, expressway from Tarlac City to
November 2011
Cabanatuan City
Implementation
period:
November
Will connect Tarlac City, La Paz, Zaragoza, Aliaga, and
2015 April 2019
Cabanatuan City, Nueva Ecija
5.
These are Tarlac City, Victoria, Gerona, Paniqui, Moncada, and San Manuel in Tarlac; Rosales, Urdaneta City,
and Pozzorubio in Pangasinan; and Rosario in La Union.

Status/Timelines
Will reduce average travel time between Tarlac City and
Cabanatuan City from 69 minutes to 20 minutes and will
benefit 11,200 motorists per day
7. Arterial Road Bypass Project, Bulacan (Plaridel Bypass
Road)
Phase I (P3.72 billion)
Started in January 2009 and completed
17.05-km road and eight bridges (301 lm)
in November 2012
Phase II (P3.34 billion)
9.96-km bypass road, four new bridges, drainage
November 2011
facilities, and slope stabilization works
Implementation period: July 2014
January 2018
Traverses the municipalities of Balagtas, Guiguinto,
Plaridel, Bustos, and San Rafael in Bulacan; and
connected the NLEX in Balagtas, Bulacan with the
Maharlika Highway in San Rafael, Bulacan
Will reduce average travel time between Burol, Balagtas
and Maasim, San Rafael in Bulacan from 69 minutes to 24
minutes and will benefit 15,132 motorists per day
8. Southern Tagalog Arterial Road (STAR), Phase II, Started in May 2013 and completed in
Batangas (P2.32 billion)
May 2015
Construction of additional two lanes of 19.74-km Portland
Cement Concrete Pavement, including asphalt overlay of
22.16-km, 4-lane North and Southbound lanes of Sto.
Tomas to Lipa City Section (Stage 1)
Connected Sto. Tomas, Tanauan, Malvar, Lipa, and Ibaan
municipalities in Batangas and reduced average travel
time between Sto. Tomas and Batangas City from 55
minutes to 30 minutes
9. Muntinlupa-Cavite Expressway (MCX) Project (Daang Approved by the NEDA Board in July
Hari-SLEX Link Road) (P2.01 billion)
2011
4-km, four-lane paved toll road
Implementation period: April 2012July
Will connect Bacoor, Cavite to SLEX
2015
Will reduce travel time between Cavite and Makati from 90 Opened on 24 July 2015
minutes to 45 minutes and will benefit 25,000 motorists per
day
10. C-6 Phase I (Southeast Metro Manila Expressway) Implementation period: October 2015
(P31.32 billion)
July 2019
34-km, six-lane expressway from Skyway FTI, Paranaque
City to Batasan, Quezon City
The entire C6 project is envisioned to extend from FTI in
Paraaque City to San Jose Del Monte, Bulacan
It will decongest EDSA, C5, and other major arteries of
Metro Manila by providing an alternate route between
Paranaque and Quezon City
11. Metro Manila Skyway (MMS) Stage 3 (P37.43 billion)
14.8-km, six-lane expressway
January 2018
Will connect Balintawak, Quezon City to Buendia, Makati
The MMS3, along with the C6 and NLEX-SLEX Connector
form part of the Metro Manila Expressway envisioned
under Presidential Decree 18945 issued in 1983
Will decongest EDSA and other major roads in Metro
Manila (e.g., Quezon Avenue, Araneta Avenue, Nagtahan)
by as much as 55,000 vehicles daily and reduce travel time
Amending the franchise of the Philippine National Construction Corporation to construct, maintain, and operate toll
facilities in the North Luzon and South Luzon Expressways, to include the Metro Manila Expressway to serve as
an additional artery in the transportation of trade and commerce in the Metro Manila area.

from Buendia to Balintawak from 2 hours to 15 to 20
minutes
12. NLEx Harbor Link Project Segment 8.2 (P6.50 billion)
7.5-km, four-lane divided expressway
Will connect Mindanao Avenue to Commonwealth Avenue
in Quezon City
Will reduce travel time from Mindanao Avenue to
Commonwealth Avenue from 45 minutes to 10 minutes
13. NLEx Harbor Link Project Segment 9 (P1.15 billion)
2.42-km, four-lane expressway
Connects NLEX Mindanao Avenue Link (Segment 8.1) at
the Smart Connect Interchange to McArthur Highway in
Valenzuela City
Reduced travel time from Mindanao Avenue to MacArthur
Highway from 30 minutes to 5 minutes
14. NLEx Harbor Link Project Segment 10 (P9.00 billion)
5.65-km, four-lane elevated expressway
Will connect McArthur Highway in Valenzuela City and C3 in Caloocan City
Will decongest Metro Manila traffic by providing access to
NLEX without passing through EDSA or the Balintawak
Toll Plaza and improve movement of cargo between NLEX
and the Radial Road 10
15. South Luzon Expressway (SLEX) Toll Road 4 (TR4)
(P13.1 billion)
58-km, four-lane expressway extension
Will connect Sto. Tomas (Batangas), Macban (Laguna),
San Pablo (Laguna), Tiaong (Quezon), Candelaria
(Quezon), and Lucena (Quezon)
Mandated under Presidential Decree 1894
Will facilitate faster and safer travel to Laguna, Batangas,
Quezon, and the Bicol region and reduce travel time from
Sto. Tomas, Batangas to Lucena, Quezon from 4 hours to
1 hour and benefit an estimated 17,000 travellers per day
16. Davao City Bypass Road Construction Project
(P16.82 billion)
44.58-km road including a tunnel and a bridge
Will connect 12 barangays starting from Barangay
Sirawan, Toril, Davao City to Barangay JP Laurel, Panabo
City, Davao del Norte
Sources: DPWH, DOTC, and PPP Center
Status/Timelines
Implementation period: first
2017-fourth quarter 2019
quarter
Started in 2013 and completed in March

2015
Implementation period: 20142017

(15.47% complete as of June 2015)

December 2020

2015
Implementation period: 20182021
C. AIRPORT DEVELOPMENT PROJECTS

Status/Timelines
Mactan Cebu International Airport New Passenger Approved by the NEDA Board in
Terminal, Cebu (P17.52 billion)
November 2013
Construction of a new passenger terminal building (PTB) Winning
concessionaire
(GMR
to increase the airports capacity from 4.5 million to 15
Megawide) assumed airport O&M in
million passengers per year; and handover of airports
November 2014
Operations and Maintenance (O&M) to a concessionaire
Implementation period: June 2015June
2019
2. Puerto Princesa Airport Development Project, Palawan Approved by the NEDA Board in
(P4.46 billion)
September 2012
Construction of new facilities such as a PTB, cargo Implementation period: August 2014
terminal building, apron, connecting taxiways, and other
January 2017 (30% complete as of 22
support facilities to increase the airports capacity from
June 2015)
350,000 to 2 million passengers per annum
3. Laguindingan Airport Development Project, Misamis Approved by the NEDA Board in
Oriental (P22.32 billion)
December 2010
Construction of a new airport to replace the Lumbia and Opened as visual flight rules only airport6
Baloi Airports in Cagayan de Oro and Iligan cities, which
in June 2013; air navigation facilities fully
have terrain and weather restrictions (P7.70 billion)
installed in November 2014
Expansion of airport and handover of O&M to private
concessionaire (P14.62 billion)
Can accommodate 1.6 million passengers per annum
4. New Bohol International Airport, Bohol (P11.71 billion)
Approved by the NEDA Board in June
Construction of a new airport in Panglao Island, Bohol to
2014
replace the Tagbilaran Airport due to its limited capacity for Implementation period: June 2015expansion and operational safety concerns (P7.14 billion)
December 2017
Turnover of O&M to private concessionaire and future
expansion of the airport (P4.57 billion)
Can accommodate 1.7 million passengers per annum
5. Bicol International Airport, Albay (P4.80 billion)
Construction of a new airport in Daraga, Albay to replace
September 2012
the Legaspi Airport, which has terrain and weather Implementation period: December 2013restrictions
June 2018
Can accommodate approximately 2 million passengers per Airside works (e.g., runway and
annum
taxiways) 65% complete as of 24 July
2015
6. NAIA Terminal 1 Rehabilitation (P2.64 billion)
Implementation period: January 2014 Rehabilitation of the NAIA Terminal 1 (e.g., renovation of
September 2015
facilities)
Source: DOTC
1.
VFR is a flight wherein pilots must be able to fly the aircraft by looking outside the windows using visual references,
(see other aircraft, terrain, and obstacles). This is only permitted when there is adequate visibility.
D. SEA PORT PROJECTS

1.

Status/Timelines
Puerto Princesa Port, Palawan (P850.90 million)
Implementation period: February 2012
Five projects involving various works such as the
Q3 2017
construction of back-up areas and reinforced concrete
wharves, expansion of PTB, and installation of port lighting
systems
2. Iloilo Port and River Wharf, Iloilo City

Implementation period: July 2011Q3
(P756.76 million)
2016
Six projects involving various works such as paving of
container yard and backup area, construction of wharf,
passenger terminal, and other berthing facilities
3. General Santos Port, General Santos City
Implementation
period:
December
(P328.04 million)
2014Q3 2018
Seven projects involving various works such as
rehabilitation of reinforced concrete wharves and Roll-On
Roll-Off ramp, construction of port operations building,
PTB, and gates
4. Currimao Port, Ilocos Norte (P124.51 million)
Implementation
period:
December
Rehabilitation and extension of the reinforced concrete pier
2013July 2015 (98.23% complete as of
06 July 2015)
Sources: DOTC and PPA
E. MASS TRANSIT SYSTEMS

Status/Timelines

February 2015
Implementation period: Q3 2017Q3
2020
Operations targeted by the first quarter
of 2021
February 2015
Implementation period: Q3 2017Q3
2020
Operations targeted by the first quarter
of 2021
November 2013
Implementation: Q2 2016-Q1 2020
Full operations of the extension targeted
by Q1 2020
1.
North-South Railway Project North Line

(P117.30 billion)
Construction of a rail line from Malolos, Bulacan to
Tutuban, Manila
2.
North-South Railway Project South Line

(P170.70 billion)
Construction of a rail line from Tutuban, Manila to Legazpi,
Albay, with possible extension to Matnog, Sorsogon and a
spur from Calamba, Laguna to Batangas
3.
Light Rail Transit (LRT) Line 1 South Extension Project

(P64.90 billion)
Extension of the LRT from Baclaran to Bacoor, Cavite and
privatization of the O&M of the system (existing and
extension).
Will increase ridership from 470,000 passengers per day
to 790,000 passengers per day
Metro Rail Transit (MRT) Line 3 Projects (P9.97 billion)
September 2012
Implementation period: February 2014January 2017
Procurement of 48 new Light Rail Vehicles and upgrading Delivery of LRV prototype will be in
of ancillary systems (e.g., power supply) (P4.60 billion)
August 2015, after which, 3-4 LRVs will
be delivered per month starting January
2016 until all 48 LRVs have been
Procurement of maintenance providers (i.e., interim/6
delivered.
months and 3-year providers) (P4.54 billion)
Interim maintenance contracts for the
Rehabilitation of rail, traction motors, signaling systems,
rails and tracks; power and overhead
and conveyance systems, among others (P834 million)
catenary systems; communications;
building and depot facilities; automatic
fare collection system; and rolling stocks
are ongoing while maintenance contract
for the conveyance facilities is pending
issuance of Notice to Proceed. Contract
period is from July to December 2015
Rail replacement targeted from March
2015 to March 2016
Rehabilitation of 12 escalators targeted
for completion by December 2015; while
rehabilitation of 32 elevators and 34
Will increase passenger capacity and reduce waiting time
escalators is targeted by Q2 2017
for trains.
Signaling system upgrade targeted from
August 2015 to February 2016
Cebu Bus Rapid Transit (P10.60 billion)
Establishment of a transport system with around 176
2014
buses that will run through dedicated and exclusive bus- Ongoing Detailed Engineering Design
ways from Bulacao to Talamban in Cebu City, with a link
(DED)
to Cebus South Road Property
Implementation period: July 2016-July
Entails the installation of 33 bus stations along the 23-km
2018
corridor in Cebu City
4.
5.
Status/Timelines
Metro Manila Integrated Transport System

South and Southwest Terminals
(P6 billion)
approved by the NEDA Board in May
Establishment of integrated transport terminals to service
2014
the estimated 9,000 provincial buses plying Metro Manilas Southwest Terminal implementation
roads. It is composed of three terminals:
period: December 2015-June 2017; full
Southwest (SW)Terminal (Cavite routes)
operation by July 2017
South Terminal (Laguna and Batangas routes)
South Terminal implementation period:
North Terminal (Northern Luzon routes), with location
June
2016-December
2017;
full
and cost to be determined by DOTC
operation by January 2018
North Terminal: feasibility study ongoing
7. Automatic Fare Collection System (P1.72 billion)
Development and implementation of a single contactless
November 2012
automatic fare collection system in LRT Lines 1 and 2 and Full system operation by December
the MRT Line 3 to replace the existing magnetic stripe
2015
collection technology and allow the use of a card for all
three lines
Source: DOTC
6.
F. FLOOD CONTROL PROJECTS

Flood Management Master Plan (P28.7 billion)
1. Pasig-Marikina River Channel Improvement Project, Phase II
(P5.54 billion)
Channel improvement works consisting of revetments7 (7.64 km),
river walls (7.65 km), and appurtenant drainage improvement works
(123 outlets) at priority critical sections of Pasig River
Reduced frequency of bank overflow and mitigated annual flood
damages of P1.19 billion for assets in 255 ha
Relieves 170,000 people and 37,954 various infrastructures and
facilities from flood
2. Pasig-Marikina River Channel Improvement Project, Phase III
(P7.54 billion)
Channel improvement works consisting of revetments (7.92 km),
river walls (5.52 km), and dredging works (889,100 cu. m) at
remaining sections of Pasig River and priority critical sections of
Lower Marikina River
Will decrease flood inundation by 18% equivalent to 750 hectares
(ha) from 4,200 ha to 3,450 ha
Will reduce annual flood damages by P14.3 billion from P80.6 billion
to P66.3 billion
Will reduce affected population by 200,000 from 1.2 million to 1
million
3. Mandaluyong Main Drainage Projects (P609.14 million)
Improvement of drainage system in Maysilo Area and its immediate
vicinity
4. Blumentritt Interceptor Catchment Area (P600 million)
Construction/Rehabilitation of Drainage System from Estero De
Sunog Apog to Piy Margal in Sampaloc, Manila
5. High-impact flood control projects (P5 billion)
Includes the Valenzuela-Obando-Meycauayan (VOM) Project in
NCR, the San Fernando-Sto. Tomas-Minalin Tail Dike Project in
Region III, and the Sta. Maria-Mabitac River Project in Region IV-A
Other Major Flood Control Projects
6. Pinatubo Hazard Urgent Mitigation Project Phase III (P5.75 billion)
Will reduce flood and damages in the city of San Fernando and
municipalities of Guagua, Sasmuan, Bacolor and Lubao in
Pampanga
7. Flood Management Risk Project (P5.59 billion)
Cagayan River in Cagayan Valley
Works include revetments (3.3 km), excavation, and
backfill/embankment
Will address bank erosion that leads to loss of economically highvalue lands in Tuguegarao City and parts of Cagayan Province
Tagoloan River in Misamis Oriental
Construction of the remaining section of the dike system in the
lower Tagoloan River Basin, which will reduce flooding and
contribute to the continuous development of the area
Imus River in Cavite
Construction of two off-site retarding basins along Imus River and
Bacoor River, which will reduce flood flow in the area
8. Flood Management Project for Cagayan de Oro (P8.55 billion)
Implementation of structural measures (e.g., construction of new
dike/retaining wall, retarding basin, and new road/raising of existing
road) and non-structural measures (e.g., flood hazard map,
evacuation planning)
Status/Timelines
Completed in May 2013
Ongoing, 26.97% as of 30 June

2015; for completion in June 2017
Ongoing, 64.28% as of June 2015;

for completion in May 2016
2015; for completion in March 2016
2015; for completion in November
2015
2015; for completion in October 2015
March 2016February 2019
July 2017July 2021
Source: DPWH
7
Refer to concrete structures that are built to act as barriers against waves, preventing areas from being eroded.
G. HEALTH FACILITIES ENHANCEMENT PROGRAM (HFEP)-FUNDED HEALTH

FACILITIES
Health Facility
Funding
Description
Select Upgraded Hospitals Within and Outside Metro Manila
1. Region 1 Medical
P124.3 million
Its upgrading, which involves among others the renovation
Center
of its outpatient department and construction of an
(2010, 2013, and
(Pangasinan)
emergency room, came as a big convenience to patients in
2014 HFEP)
its catchment areas who now have a choice of not traveling
to Metro Manila for treatment.
2. East Avenue
P857 million
Various renovations increased the number of private and
Medical Center
PhilHealth rooms by 33%, from 120 to 160.
(Quezon City)
(2013 and 2014 The Emergency Room and Trauma Center upgrade
HFEP)
resulted in an improved response to emergency cases and
increased capacity load to more than 350 patients/day from
150 patients/day before its development.
The expansion and provision of three additional dental
chairs led to a 10% increase in patients served.
The overall impact resulted in an increase in daily census of
patients from 750 to 900.
3. Philippine Heart
P100 million
Expansion and addition of 100 beds (80 beds for charity
Center
patients and 20 for dialysis patients) will benefit an
(Quezon City)
(2013 HFEP)
estimated 500 to 1,000 additional service patient
beneficiaries with cardiovascular problems.
4. Dr. Jose N.
P455 million
Currently serves as the principal referral hospital for leprosy
Rodriguez
patients and the premier training and research center for
Memorial Hospital
(2010, 2011,
leprosy care and management in the country
(Caloocan City)
2013, and 2014 Now offers minor and major surgery and obstetrics and
HFEP)
gynecology services; before, only medicine, pediatrics, and
laboratory services were available.
5. Bicol Regional
P170.5 million
With the renovation of its old buildings, construction of a new
Training and
building, and upgrading of hospital equipment, it operates
Teaching Hospital
(2010, 2013, and
as a modern hospital that delivers the quality services to all
(Albay)
2014)
Bicolanos and nearby provinces through expanded
PhilHealth services, and DOH programs and accreditations.
6. Vicente Sotto
P145 million
The number of heart surgeries and diagnostic procedures
Memorial Medical
performed increased by 55% or 157 successful
Center Heart-Lung(2010 and 2013
surgeries/procedures for each year in 2012 and 2013
Kidney Center
HFEP)
compared to 101 in 2010.
(Cebu)
Eight successful kidney transplant procedures have been
performed since 2012.
7. Corazon
Locsin
P440 million
With an ultra-modern infrastructure with the construction of
Montelibano
its six-story West Tower and upgrading of its old structures,
Memorial Regional (2010 and 2013
the hospitals capacity was enhanced to manage
Hospital
HFEP)
specialized cases (e.g., cancer treatment and renal
(Negros Occidental)
transplant operation).
The number of patients served increased by 55% from
40,280 in 2013 to 62,586 in the first semester of 2014 and
is expected to reach 300% by the end-2015.
8. Northern Mindanao
P185 million
Its capacity has been continuously upgraded and enhanced
Medical Center
in handling complicated heart, lung, and kidney operations
(Misamis Oriental)
(2013 HFEP)
and procedures. Heart surgeries and kidney transplants
were made available to patients who could not go to Manila
due to financial constraints.
Since March 2013, successful open heart surgeries in
sixteen patients have been conducted. In addition, thirteen
kidney transplant procedures have been done since
September 2012, with all kidney transplant patients doing
well.
9.
Health Facility
Davao Regional
Hospital Cancer
Center for
Mindanao
(Davao Del Norte)
Funding
P157.4 million
(2010 HFEP)
Select Upgraded District Hospitals

P11.25 million
10. Concepcion District

Hospital
(Concepcion,
Tarlac)
11. Porac District
Hospital
(San Fernando,
Pampanga)
12. Vicente Gustilo
District Hospital
(Escalante City,
Negros Occidental)
13. Cadiz District

Hospital
(Cadiz City, Negros
Occidental)
14. Lorenzo D. Zayco
Memorial District
Hospital
(Kabanlakan City,
Negros Occidental)
15. Ignacio L. Arroyo

Memorial District
Hospital
(Isabela, Negros
Occidental)
(2011 and 2012

HFEP)
P16.0 million
(2012 and 2013
HFEP)
P13.4 million
(2011, 2012, and
2014)
P20.35 million
(2012 and 2014
HFEP)
P27.93 million
(2012 and 2014
HFEP)
P21.3 million
(2011, 2012,
2013, and 2014
HFEP)
Description
Involves the construction and procurement of equipment for
the Cancer Center
Equipped with a state-of-the-art Linear Accelerator
Machine, which delivers high-energy beams to the region of
the patients tumor, and through which, cancer cells are
destroyed while sparing the surrounding normal tissue,
contrary to the usual radiation therapy using Cobalt
Machine.
The number of facility-based deliveries increased by 10%,
from 1,685 in 2011 to 1,854 in 2014.
from 1,578 in 2011 to 1,828 in 2014.
The number of patients served increased by 56%, from
6,541 patients in 2010 to 10,202 patients in 2014.
The number of surgical operations and deliveries with
complicated cases increased by 84%, from 45 in 2010 to 83
in 2014.
Revenues coming from PhilHealth and other sources
increased by 425% from P11 million in 2010 to P57.8 million
in 2014.
2,421 in 2010 to 4,995 in 2014.
complicated cases increased by 1,285%, from 20 in 2010 to
277 in 2014.
The number of patients served increased by 31.6%, from
6,577 in 2010 to 8,656 in 2014.
complicated cases increased from 0 in 2010 to 528 patients
in 2014.
increased by 447%, from P10.3 million in 2010 to P56.3
million in 2014.
4,174 patients in 2010 to 5,511 in 2014.
The number of deliveries increased by 73%, from 387 in
2010 to 669 in 2014.
increased by 369%, from P5.1 million in 2010 to P23.9
million in 2014.
Select Upgraded Barangay Health Stations

from 12,268 in 2011 to 17,324 in 2012.
16. Nabuklod BHS

(Floridablanca,
Pampanga)
17. Capas Birthing
Facility
(Capas, Tarlac)
Source: DOH
Facility-based deliveries increased by 43%, from 14,821 in

2010 to 21,178 in 2013.
H. MAJOR HOSPITALS FOR MODERNIZATION

Health Facility
Philippine
Orthopedic
Center
(Quezon City)
Funding
Total Cost Requirement: P5.69
billion (infrastructure and
equipment)
Available Funding and Source:
P5.69 billion / PPP
2.
Dr. Jose Fabella

Memorial
Hospital
(Manila)
Total Cost Requirement: P1.6

billion (infrastructure)
P1.59 billion / 2013 and 2014
HFEP
3.
Cagayan Valley
Medical Center
(Tuguegarao City)
Total Cost Requirement:

P281.63 million (infrastructure)
P281.63 million
(infrastructure) / PPP
Strategic Support Fund
2012
P50 million (equipment) /
2015 HFEP
1.
Source: DOH
Description
Envisioned to be the Center for Bone and
Joint Diseases, Trauma, and Rehabilitation
Medicine, it will be transformed into a
modern orthopedic center with the capacity
to provide high-quality orthopedic care,
complemented
by
state-of-the
art
diagnostic and surgical facilities.
Involves the construction of a 700-bed
capacity super-specialty orthopedic hospital
within the National Kidney and Transplant
Institute compound in Quezon City
Construction will commence in 2016
Target completion is in 2018
Involves the construction of a nine-story
hospital that will increase bed capacity from
477 to 800 and the upgrading of its health
facilities to improve maternal health
outcomes
Construction commenced in April 2015
Target completion is in June 2017
Involves the construction of a five-story
hospital building that will increase bed
capacity from 300 to 600 to improve
accessibility to quality hospital care,
especially for the indigent patients in the
Cagayan Valley Region
Construction commenced in June 2014
Target completion is in December 2015

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THE 2015 STATE OF THE NATION ADDRESS

Department of Environment and Natural Resources

Kasaganaan sa Niyugan ay Kaunlaran ng Bayan

Open Government Partnership

State Universities and Colleges

THE AQUINO LEGACY OF GOOD GOVERNANCE

TRANSPARENT, ACCOUNTABLE, AND PARTICIPATORY GOVERNANCE

Reformed the Budget Process

The 2015 SONA Technical Report

Figure 1: Budget Distribution per Sector (20052015)

Through the Zero-Based Budgeting Approach, government programs and projects

The 2015 SONA Technical Report

The 2015 SONA Technical Report

Figure 2: Tax Effort (20102014)

The 2015 SONA Technical Report

The 2015 SONA Technical Report

Under the GCGs oversight, reforms were implemented toward professionalizing

The 2015 SONA Technical Report

Figure 3: Dividend Contribution to Non-Tax Revenues (20012014)

Percentage to Non-Tax Revenue

Institutionalized Good Governance Practices

Composed of 77 provinces, 141 cities, and 1,389 municipalities

The 2015 SONA Technical Report

Disclosure of financial transactions, budget utilization, and project and program

Posting of bidding in the Philippine Government Electronic Procurement System

The 2015 SONA Technical Report

ARTA (Citizen's Charter)

The 2015 SONA Technical Report

The 2015 SONA Technical Report

2. Upheld Transparency and Citizen Engagement in Government

Sources: DBM and DILG

The 2015 SONA Technical Report

The 2015 SONA Technical Report

The 2015 SONA Technical Report

RAPID, INCLUSIVE, AND SUSTAINED ECONOMIC GROWTH

The 2015 SONA Technical Report

Note: Numbers may not add up due to rounding.

As an illustration of prudent and effective management of liabilities, the government

The 2015 SONA Technical Report

The 2015 SONA Technical Report

Interest Payments as % of Exp

Figure 7: Debt-to-GDP Ratio

Sources: BTr and PSA

In 2014, the countrys interest payments as a share of expenditure was at 16.2

Figure 8: Interest Payments and NG Total Debt Service as a Percentage of Expenditure

Total Debt Service as % of Exp

Aside from improved competitiveness rankings and investment grade ratings,

The 2015 SONA Technical Report

Figure 10: PSEi Record Highs (as of 24 July 2015)

Enhanced Exports and Expanded Markets

Converted using Jan-Feb 2015 average rate of EUR1=US$1.148550

The 2015 SONA Technical Report

Increased Foreign and Domestic Investments

As of June 2015, 46.8 percent or P1.38 trillion of P2.94 trillion of PEZA-approved

The 2015 SONA Technical Report

Figure 12: Share of PEZA-approved

Figure 13: Share of BOI-approved Investments

Ramos (3 years and 4 months)

Estrada (2 years and 7 months)

Estrada (2 years and 7 months)

Arroyo (9 years and 5 months)

Arroyo (9 years and 5 months)

Filipino investors confidence in the economy is remarkable, as shown by the

The 2015 SONA Technical Report