Commission onInformation and CommunicationsTechnology

Erwin AlampayMaria Teresa M. Camba

Philip Varilla

ADB/ITU Final International Workshop on Rural ICT Development 30 June – 2 July 2011 Krabi, Thailand

PHILIPPINE COUNTRY REPORT

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Part 3

Funding Mechanism

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3. Funding Mechanism

• The Philippines has long recognized “the vital role of communication and information in nation-building.” (Philippine Constitution, Article 2, Sec. 24).

• It considers telecommunications as essential to the country’s economic development, integrity and security, and as such it “shall be developed and administered as to safeguard, enrich and strengthen the economic, cultural, social and political fabric of the (Philippines Republic Act 7925, Article 2, Sec. 4).

• This has been echoed and restated in various medium term development plans and sectoral plans over the years.

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3. Funding Mechanism

• 1980s – RTDP/NTP : Funded through ODAs and Government Appropriations

Network Project Funding

Northern Luzon RTDP Japanese official development assistance (ODA),

with yearly government appropriations. Already

privatised, the facilities left with TELOF cost

US$19M.

Southern Luzon NTP I-1 Japanese ODA, with yearly government

appropriations.

Already privatised, the facilities left for TELOF to

operate are estimated to cost US$6M.

Visayas NTP –I-2 French ODA, with yearly government appropriations.

It amounted to a total of US$54M

Mindanao NTP-I-3 Italian ODA, with yearly government appropriations

It amounted to a total of US$68M.

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3. Funding Mechanism

• Early to mid-1990s – – PPP in the implementation of the Municipal Act of

1989– Private Sector given the first option to deploy telecom

systems in provinces they selected– Gov’t will install telecom systems in provinces not

selected with ODA funding support– The National Telecommunications Development

Plan (1990-2010) sought to divest the state of its role in the delivery of telecommunications services through privatization and to encourage growth through more competition.

– Private sector led: • Competition/Liberalization

– EO 59 required mandatory interconnection among telecommunication providers

• Service Obligations: Ex. Service Area Scheme– EO 109 introduced service obligations

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3. Funding Mechanism

• 2000s– Still primarily private sector

dependent– In most cases, projects have

involved a combination of state-funded mandates and investments, together with obligations and incentives for private operators

• More recent initiatives have focused on rural telecenters, and broadband infrastructure and related resources.

– The country has not adopted a Universal Service Fund

– Provides for an E-Government Fund

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3. Funding Mechanism

E-Government Fund

• Was created as an alternative funding source for mission-critical, high-impact, and cross-agency ICT projects:– To Institutionalize a facility and mechanism that would

provide full funding support for mission-critical government ICT projects;

– To ensure successful completion of high-impact ICT projects that would jumpstart the development and implementation of eGovernment throughout the country; and

– To facilitate the professional evaluation, selection and monitoring of ICT projects that would lead to more effective and/or efficient cross-agency interfaces.

Examples of ICT projects funded include the e-LGU project and Community e-Centers (CECs)

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End of PresentationThank you!End of PresentationThank you!

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