Good Governance is Good Economics

The Republic of the Philippines The Republic of the Philippines

Good Governance is Good Economics Good Governance is Good Economics

September 2012

Agenda

Executive Summary 3Executive Summary 3

The Social Contract with the Filipino People 4

Economic and Fiscal Updates 8

Economic and Fiscal Outlook 21

Key Investment Areas 39

Profiles of Speakers 58Profiles of Speakers 58

Directory of Economic Agencies 72

Investor Relations Office Brochure 73Investor Relations Office Brochure 73

The Philippines: Pushing Forward on All Fronts

•Sustained growth momentum driven by strong domestic consumer base and increasing investments •Sustained growth momentum driven by strong domestic consumer base and increasing investments

•Prudent fiscal management focused on fiscal consolidation and medium-term debt sustainability

•Strong external payments position supported by large foreign exchange reserves, robust overseas •Strong external payments position supported by large foreign exchange reserves, robust overseas Filipino remittances and a net external creditor balance

•Effective monetary policy ensured price stability through its proactive stance and independent approach to policy implementation approach to policy implementation

•Sound banking system which is resilient to external shocks due to low NPLs, strong prudential ratios and stable domestic funding sources

•Reform-minded Administration with a growing track record of good governance, prudent fiscal and budgetary management and sustained popular support from the Filipino people

Growing third -party recognition with several credit rating upgrades over the past two years, Growing third -party recognition with several credit rating upgrades over the past two years, enhanced investor confidence, and improvements in governance and competitiveness rankings

3

The President’s Social Contract with the Filipino P eopleFive key result areas

*

• The delivery of social and economic services will not be effective without good governance

*

• The delivery of social and economic services will not be effective without good governance

• Poverty reduction initiatives should also be coupled with efforts to generate employment through economic growth

• A conducive context of peace and rule of law, and of environmental integrity is needed to support good governance, poverty reduction and growth

4

Source: Philippine Development Plan 2011-2016, Proposed 2013 Budget in Brief, Department of Budget and Management

governance, poverty reduction and growth

*There is no poverty If there is no corruption

The President’s Social Contract with the Filipino P eoplePhilippine Development Plan 2011-2016: In pursuit of inclusive economic growth

Critical Interventions to Achieve Inclusive Growth Medium-Term Targets

7.0-8.0% average GDP growth per year

22.0% investment-to-GDP by 2016

1 million employment generation per year

6.8% unemployment rate by 2016

16.6% poverty incidence by 2015

2.0% deficit-to-GDP by 2013 2.0% deficit-to-GDP by 2013

Upper 30% in global governance and competitiveness rankings by 2016

Investment grade sovereign credit ratings before 2016

5

Source: Philippine Development Plan 2011-2016 Results Matrices; 2013 Proposed Budget in Brief

Structural and Other Developmental Reforms and Prog rams Accelerating reforms to achieve inclusive growth

2005: Passage of

Expanded Value-Added Tax Law (EVAT)

1995:Liberalization of

telecommunications industry

2001:Liberalization of the power sector

(EPIRA)

2005:Passage of Securitization Act

1993: Creation of the Bangko

Sentral ng Pilipinas

1998:Deregulation of the oil

industry

2003:Passage of Special Purpose Vehicle Act

2007:Implementation of risk-based bank supervision

2009:Passage of Tourism Act

1993 1998 2003 2008

1997: Privatization of water

2002: Adoption of inflation 2004:

Passage of Government

2008: Passage of Renewable

1994:Liberalization of foreign bank

Privatization of water services

2000:Passage of General Banking Law

Adoption of inflation targeting framework

2004:Adoption of

Passage of Government Procurement Reform Act

Passage of Renewable Energy Act

Liberalization of foreign bank entity

Passage of General Banking Law and Phil. E-Commerce Act

Adoption of Basel 2

2006:Establishment of the Wholesale Electricity Spot Market (WESM)Electricity Spot Market (WESM)

66

Structural and Other Developmental Reforms and Prog rams Accelerating reforms to achieve inclusive growth

2010:Applied Zero Based Budgeting

Approach in preparing the 2011 Budget2011:

Passage of the Government-Owned-and-Controlled Corporations (GOCCs)

2012 and beyondFull implementation of the Government

Integrated Financial Management Information Systems (GIFMIS) in 2013

2010:Implementation by the Bureau of

Customs (BOC) of Electronic to Mobile System; Enhancement of the agency’s

post-entry audit capability

and-Controlled Corporations (GOCCs) Governance Act of 2011

2012: Issued EO 79 Institutionalizing and

Implementing Reforms in the Philippine Mining Sector Providing Policies and Guidelines to Ensure Environmental

Protection and Responsible Mining in

2010:Launched PPP Program

2011:Enhanced Business Name Registration

System 2012 and beyond: Sin Tax Bill and Rationalization

of Fiscal Incentives Bill

Protection and Responsible Mining in the Utilization of Mineral Resources

2011 20122010

2010:Reinvigorated implementation of

2011: Issued guidelines on the adoption of

of Fiscal Incentives Bill

2012: Reinvigorated implementation of programs against corrupt officials, tax

evaders and smugglers

2010:

Issued guidelines on the adoption of Philippine Financial Report Standards

(PFRS) 9: Adopted phased-immigration to Basel III

2012: Program Budgeting Approach

2012: Nationwide Launch of Philippine

Business Registry Facility2010:Simplified and shortened business

practices through web-based applications at the BIR

Business Registry Facility

2012: Passage of Amendments to the

Anti-Money Laundering Act of 2001

2011: Issued EO 29 on Open Skies Policy

2010:Set up the Debt Management Office at

the Department of Finance2011:

BOC National Single Window

2012: Launched Food Staples Sufficiency

Program77

The Philippines: Pushing Forward on All Fronts

Sustained Economic Growth

2011 2012

GDP 3.9%6.1% Sustained Economic Growth

Effective Monetary Policy

GDP 3.9%6.1% (S1)

Inflation 4.6%3.2%

(Jan-Aug)

Strong External Position GIR US$75.3bnUS$80.8bn(end-Aug)

Fiscal DeficitPhP197.8bn

(2.0% of PhP73.7bn

Prudent Fiscal Management

Sound Banking System

Fiscal Deficit (2.0% of GDP)

PhP73.7bn(Jan-Jul)

Nonperforming Loans1 2.9%

2.7%(end-Jun)Sound Banking System

Positive Investor Sentiment

Loans1 (end-Jun)

PSEI 4,371.96 pts5,322.5 pts (Sep 14)

Growing Third-Party Recognition Positive Credit Rating Actions

4a 2b

(end-July)

8

Source: Bangko Sentral ng Pilipinas, Department of Budget and Management 1 Banking system NPLa. 2 rating upgrades, 2 positive outlook from the three major credit rating agencies b. 1 rating upgrade; 1 positive outlook from the three major credit rating agencies

Philippines Sustains Robust GDP Growth Strong economic momentum continues despite external challenges

2012

The Philippines’ Economic Performance Continues to Beat Market Expectations

Q2 S1

Country

2012 GDP Growth (%)

Q1 Q2 S1

ITEM

Q2 S1

2011 2012 2012

Growth Rate (%) Share to GDP

(%) GNI 2.4 5.6 5.4

China 8.1 7.6 7.9

Indonesia 6.3 6.4 6.4

GNI 2.4 5.6 5.4Net Primary Income -1.1 4.5 3.1

GDP 3.6 5.9 6.1By Industrial Origin

Philippines 6.3 5.9 6.1

Malaysia 4.9 5.4 5.2

Agri, Fishery, Forestry and Hunting

8.3 0.7 0.8 10.9

Industry -1.4 4.6 4.9 32 Malaysia 4.9 5.4 5.2

Vietnam 4.0 4.4 4.2

Industry -1.4 4.6 4.9 32Services 5.6 7.6 7.8 57.1By Expenditure

Household Final Consump. Exp

5.6 5.7 5.4 68.8

South Korea 2.8 2.4 2.6

Thailand 0.4 4.2 2.3

Consump. Exp

Gov’t Final Consump. Exp

6 5.9 12.3 11.3

Capital Formation -10.1 2.3 -13.2 16.8

Source: National Statistical Coordination Board 9

Singapore 1.5 2.0 1.8

Capital Formation -10.1 2.3 -13.2 16.8

Exports 0.2 8.3 9.5 52.4Imports -1 4.4 0.6 -48.2

9

Philippines Sustains Robust GDP Growth Long-term investment and structural reforms provide foundation for higher and more stable growth

A Decade of Robust and Sustained Economic Growth i s Set to Continue

GDP Growth (%) Unemployment Rate (%)

13.0%

GDP Growth (%) Unemployment Rate (%)

7.68%

Average: 4.7%

11.111.4 11.4

11.811.3

11.0%

12.0%7.0

6.06.1

7.6

6.6

5.2

6.7

6%

7%

8%

8.0

9.0%

10.0%

3.94.2

5.24.85.0

3.6

2.9

4%

5%

8.0

7.3 7.4 7.57.3

7.0 7.26.9

6.0%

7.0%

8.0%

1.1

2.9

1%

2%

3%

5.0%

6.0%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1Q12

2Q12

0%

1%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1H12

2012

P

2013

P

1Q12

2Q12

Source: National Statistical Coordination Board Source: Bangko Sentral ng Pilipinas Selected Economic and Financial Indicators Note: Data are averages for January, April, July and October rounds of Labor Force Survey (LFS). Beginning April 2005, unemployment is based on the new definition. Please note that in 2005, old concept was reflected to capture the full year data since the new concept only covered Q2-Q4 data. 1010

Fiscal Consolidation on TrackGetting on a sustainable fiscal path with improving fiscal metrics

� Firm administrative measures (i.e. RATE, RATS, RIPS) have 5%1,800

Aquino Administration Assumed Office in end-June 2010

(i.e. RATE, RATS, RIPS) have resulted in higher tax revenues and lower deficits

� Tax revenue elasticity of BIR collections increased to 1.5 in

1,2081,360

1,522 1,558

3.7%

4%1,400

1,600

collections increased to 1.5 in 2011 from 0.8 in 2004, indicating effective tax administrative measures

� Jan- July 2012

884958

3.7%

3.5%

3%1,000

1,200

Php

bn

� Jan- July 2012

–Deficit of PhP73.73bn is 26.4%of P279.1bn 2012 program

–Revenues up 12.1% yoy

2.6%

2.0%

2%

400

600

800Php

bn

–Revenues up 12.1% yoy

–Expenditures up15.1% yoy1.0%

0.2%

0.9%0.7%*

0%

1%

0

200

400

0%0

2004 2005 2006 2007 2008 2009 2010 2011 Jan - Jul 2012

Revenues (LHS) Expenditures (LHS) Deficit/GDP (RHS)

11

Source: Bureau of the Treasury

* Jan-Jun 2012

11

Proactive Liability ManagementDebt ratios continue to decline

Philippine Fiscal Consolidation is a Reality

�� General government (GG) debt/GDP has declined to 42% in 2011 from a high of 68% in from a high of 68% in 2003

� GG debt/GDP in 2011 is 9 percentage points lower than national government debt/GDP

� Proactive liability �

management has enhanced the finance-ability of government debt by extending maturities, lowering servicing cost and shifting the debt denomination towards local currency

12Source: Department of Finance

12

Proactive Liability ManagementDomestic/foreign borrowing mix effectively managed

National Government Gross Financing

Prudent Strategies to Finance the Annual Funding Re quirement Minimize Foreign Exchange Risk and Increase Funding Self-Sufficiency

National Government Gross Financing

54.7% 65.8% 64.5% 56.6% 73.4% 85.8%

56.2% 65.6% 65.2% 79.5%

5.9% 9.8%

45.3% 34.2% 35.5% 43.4% 26.6% 14.2%

43.8% 28.5% 25.0% 20.5%

85.8% 65.6% 65.2% 79.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan-Jul 2012

The External Debt Component within the Overall Debt Mix has Been Gradually Declining Over the Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan-Jul 2012

Foreign Domestic Global-Peso Notes

Foreign DomesticSource: Bureau of the Treasury, Department of Finance

13

Proactive Liability ManagementImproving debt sustainability

The National Government Debt Portfolio Has Grown Lo nger Dated Over Time

Domestic Debt� Reduced rollover

risk and increased debt carrying capacity over the

27 2954

70 7660%

80%

100%

Domestic Debt

capacity over the past ten years

� New issue yields 29 30 19 10 8

44 41

2620 16

70 76

0%

20%

40%

60%

� New issue yields decreasing and foreign currency-denominated bonds are

10 80%

2003 2005 2010 2011 Jun-12Short-term-1 year or less Medium-term-Beyond 1 year but less than 10 years Long-term-Beyond 10 years

External Debtbonds are receiving a substantial bid from onshore investors

External Debt

investors

14Source: Bureau of the Treasury, Department of Finance

14

Sound and Stable Inflation Environment Promotes Inc lusive GrowthRefinements in the inflation targeting mechanism has allowed BSP to meet its inflation target consecutively for three years

The Republic has Achieved the Right Policy Balance between Containing Inflation and Supporting Economic Growth

� Jan –Aug 2012 headline inflation averaged 3.2%, well within the 3% - 5%

12%

14%Global inflationary cycle

Inflation Rate (%)well within the 3% - 5% target range for the year

� Price stability promotes inclusive growth

8%

10%

12%inclusive growth

oIncreases certainty in decision-making

oPromotes confidence in

Upper Bound 5%

Aug 2012: 3.8%

Lower Bound 3%4%

6%

oPromotes confidence in financial instruments as a form of savings

oPreserves purchasing power Lower Bound 3%

0%

2%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

power

o Promotes efficient allocation of resources

oHas positive effects on 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Headline Lower Bound of Target Upper Bound of Target

oHas positive effects on income redistribution

15

Source: Bangko Sentral ng Pilipinas

A Robust External ProfileA strong balance of payments promotes a stable currency environment and facilitates a healthy buildup of FX reserves

The Philippines Enjoys a Structurally Positive BOP Remittances Soar to a Record of USD20.1bn in 2011

Balance of Payments (USD bn) Overseas Filipinos’ Remittances (USD bn and % Growth)30

14

16

18

14.312.8

25

19.4

13.213.7

15

20

25

30

10

12

14

8.6

14.3

10.2 8.6 10.7 12.8 14.5 16.4 17.3 18.8 20.1

9.6 10.1

12.8

5.6

8.2 7.26.3 5.1

0

5

10

15

4

6

8

2.43.8

8.6

6.4

3.5

US

D b

n

02004 2005 2006 2007 2008 2009 2010 2011 Jun-

11Jun-12OF Remittances Growth Rate (lhs)

BPO revenues continue to grow rapidly

BPO Revenues (USD bn)

-2

0

2

-0.3

0.1

3.5

1.2

BPO Revenues (USD bn)

10.0

12.0

14.0

-4

2004 2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12

Capital and Financial Account Current Account Balance of Payments1.5 2.4 3.3

4.96.1 7.1

8.911.0

0.0

2.0

4.0

6.0

8.0

1.50.0

2004 2005 2006 2007 2008 2009 2010 2011


16

A Robust External ProfileThe Philippines is a net external creditor and its positive position continues to expand rapidly

� The build-up of FX reserves buffers the economy from external shocks

o End-Aug 2012 GIR reached USD80.8 bn

FX Reserves have Surged while External Debt Remaine d Stable

FX Reserves and External Debt (USD bn)75.3 76.180.0

o End-Aug 2012 GIR reached USD80.8 bn which can cover 11.9 months worth of imports

� Resilient remittance growth sustains current 62.4

75.3 76.1

57.6 60.0

61.7 62.9

60.0

70.0

� Resilient remittance growth sustains current account surpluses.

� ROP is a net creditor to the IMF on account of strong external position

44.2

51.4 52.0 53.8

57.6 55.0 54.4 53.9

55.5 54.3 54.9

50.0

60.0

of strong external position

– Contributed USD266 mn to the Financial Transaction Plan through a currency exchange arrangement as of Dec 2011 23.0

33.837.6

30.0

40.0

Dec 2011

– The ROP is the only sub-investment grade Emerging Market to participate as a creditor in the New Arrangements to Borrow, potentially making about

15.1 15.7 16.4 17.1 16.218.5

23.0

10.0

20.0

Borrow, potentially making about USD520 mn available

– Lent USD1.0 bn to the IMF in Q2 2012 to augment funds being lent to countries

0.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar-12

augment funds being lent to countries experiencing financial difficulties FX Reserves External Debt


17

Sound Banking System Efficiently Channels Funds to Productive Uses The banking system is in good health evidenced by low NPLs and strong prudential ratios

� The improved asset quality has minimized the risk of a potential banking-system led crisis

NPL Level Continued to Improve Even Through the Global Financial Crisis

Banking System Total Loan Portfolio and NPL Ratio

50.2% 52.2%58.0%

71.9% 74.4%81.6%

87.1%93.4%

97.8%104.0% 110.2%

60%70%80%90%

100%110%

Rat

io In

Per

cent

2500

3000

3500

4000

4500

Levels in PH

P bn

� The resilience demonstrated by the Philippine banking system is highlighted by the decrease in system-wide Non-Performing Loans (“NPL”) and Non-Performing Assets (“NPA”) levels even

Banking System Total Loan Portfolio and NPL Ratio

50.2%

2.714.6 15.2 13.4 10.8 7.8 5.0 4.1 3.7 3.6 2.8

0%10%20%30%40%50%60%

Rat

io In

Per

cent

0

500

1000

1500

2000

2500

Levels in PH

P bn

and Non-Performing Assets (“NPA”) levels even at the heart of the global financial crisis

� NPL coverage ratios have strengthened as 0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jun'12

0

TLP, gross (RHS) NPL Ratio (LHS) NPL Coverage Ratio (LHS)

Strong Capitalization Above International Standards

insurance against potential future asset deterioration, and underpin the conservative nature of the banking system

18

20

22

Rat

io in

Per

cent

Strong Capitalization Above International Standards

Banking System Capital Adequacy Ratio� Banks are adequately capitalized and well-positioned to meet higher capital standards under the Basel III 17.6%

10

12

14

16R

atio

in P

erce

nt

14.4%

16.7%

BSP Regulatory Requirement of 10%

International Standard of 8%8

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011CAR, Solo CAR, Consolidated Tier 1


International Standard of 8%

18

Strong Macroeconomic Fundamentals Boost Investor Co nfidence CDS spreads and record high PSE performance reflect positive investor sentiment for the Philippines

400 bps

450 bps

Philippines’ CDS Levels are Tighter than Some Highe r Rated Peers

CountryRatings

(Moody’s/S&P/Fitch)CDS level as of

13 Sep 2012

Brazil Baa2/BBB/BBB 109.6

250 bps

300 bps

350 bps

400 bps

Spre

ad (bps)

Brazil Baa2/BBB/BBB 109.6Peru Baa3/BBB/BBB 102.8India Baa3/BBB-/BBB- 369.1Indonesia Baa3/BB+/BBB- 166.7Philippines Ba2/BB+/BB+ 129.9Turkey Ba2/BB/BB+ 154.9

50 bps

100 bps

150 bps

200 bps

Spre

ad (bps)

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12

Philippine Stock Exchange Index Sustains its Bullis h Trend

Philippine Stock Exchange Index

3000

4000

5000

6000

5,322.47 pts14 Sep 2012

0

1000

2000

3000

6/3

0/0

7

9/3

0/0

7

12/3

0/0

7

3/3

0/0

8

6/3

0/0

8

9/3

0/0

8

12/3

0/0

8

3/3

0/0

9

6/3

0/0

9

9/3

0/0

9

12/3

0/0

9

3/3

0/1

0

6/3

0/1

0

9/3

0/1

0

12/3

0/1

0

3/3

0/1

1

6/3

0/1

1

9/3

0/1

1

12/3

0/1

1

3/3

0/1

2

6/3

0/1

2

14 Sep 2012

19

6/3

0/0

7

9/3

0/0

7

12/3

0/0

7

3/3

0/0

8

6/3

0/0

8

9/3

0/0

8

12/3

0/0

8

3/3

0/0

9

6/3

0/0

9

9/3

0/0

9

12/3

0/0

9

3/3

0/1

0

6/3

0/1

0

9/3

0/1

0

12/3

0/1

0

3/3

0/1

1

6/3

0/1

1

9/3

0/1

1

12/3

0/1

1

3/3

0/1

2

6/3

0/1

2

Source: BloombergNote: Bank of India used as a proxy for the Indian sovereign.

Focus on Good Governance Yielding ResultsThe Philippines shows improvements on several governance and competitiveness indicators

2009/2010 2010/2011¹ 2012/2013 Change*

Heritage Foundation – Index of Economic Freedom 115² 107³ n/a 8 places

Transparency International – Corruption Perceptions Index 139 134 129 5 placesTransparency International – Corruption Perceptions Index 139 134 129 5 places

World Bank Government Effectiveness Indicator 51 52 n/a 1 percentile

World Economic Forum (“WEF”) – Enabling Trade Index 92 72 n/a 20 places

WEF – Financial Development Index 50 44 n/a 6 placesWEF – Financial Development Index 50 44 n/a 6 places

WEF Competitiveness Rankings

Overall 85 75 65 10 places

Institutions 125 117 94 23 placesInstitutions 125 117 94 23 places

Macro environment 68 54 36 18 places

Higher Education and Training 73 71 64 7 places

Goods and Market Efficiency 97 88 86 2 places

Technological Readiness 95 83 79 4 places

Financial Market Development 75 71 58 13 places

Business Sophistication 60 57 49 8 places

Innovation 111 108 94 14 places

Environmental Performance Index 4 50 42 n/a 8 places

* 2012/2013 vs. 2010/2011 for indicators with 2012/2013 report data.Source: World Bank, Transparency International and World Economic Forum¹ World Bank Governance Indicators and Transparency International values are for the year 2010 / World Economic Forum Rankings values are from the 2011/2012 report data.² Heritage Foundation 2011 ranking.³ Heritage Foundation 2012 ranking. 4 Environmental Performance Index by Yale & Colombia Universities in collaboration w/ WEF and EC. 2012 report data.

2020

Macro Indicators: Moving From Strength to StrengthRobust economic outlook

Actual Projections

2008 2009 2010 2011 2012 2012 20132008 2009 2010 2011 2012 2012 2013

Real GDP Growth (%) 4.2 1.1 7.6 3.9 6.1 (1H) 5.0-6.01 6.0-7.01

Headline Inflation (%) 1 8.3 4.1 3.9 4.6 3.2 (Jan-Aug) 3.0-5.01 3.0-5.01

Exports Growth (%) 2 (2.5) (22.1) 34.0 (6.9) 7.7 (Jan-Jun) 10.01 12.01

Imports Growth (%) 2 5.6 (24.0) 27.5 9.5 0.4 (Jan-Jun) 12.01 14.01Imports Growth (%) 2 5.6 (24.0) 27.5 9.5 0.4 (Jan-Jun) 12.01 14.01

OF Remittances 3

Amount (USD bn)Growth Rate

16.413.7

17.35.6

18.88.2

20.17.2

10.1 (Jan-Jun)5.1 (Jan-Jun)

21.14

5.04

22.24

5.04

Current Account(USD bn)

3.6 9.4 8.9 7.1 0.9 (Jan-Mar) 4.64 3.14

Balance of Payments(USD bn)

0.1 6.4 14.3 10.2 4.5 (Jan-Jul) 2.64 2.74

(USD bn) 0.1 6.4 14.3 10.2 4.5 (Jan-Jul) 2.64 2.74

GIR (USD bn) 37.6 44.2 62.4 75.3 80.8 (Aug) 77.0-78.04 80.74

Source: Bangko Sentral ng Pilipinas, National Statistics Office

21

Source: Bangko Sentral ng Pilipinas, National Statistics Office1 Budget Expenditures and Sources of Financing 20132 Based on NSO data3 “Cash remittances” under the BOP6 definition.4 Based on BSP projections as approved by the Monetary Board on 15 June 2012.

Economy supported by broad-based growth driversRobust economic outlook

Growth Drivers - Production Growth Drivers - Expenditure

� Infrastructure development� Tourism� Food sector

� Better labor and employment prospects� Intensified public sector spending on

infrastructure� Food sector� Retail trade � Business process outsourcing � Electronics manufacturing

infrastructure� Strong remittance inflows � Exports of non-electronics, electronics and

services� Electronics manufacturing� Communications network

modernization

services� Investments and durable equipment

Source: National Economic and Development Authorit y22

Demographic Profile will Continue to Support GrowthThe Philippines is the last major economy in Asia to enter its demographic “sweet spot”

� The median age in the Philippines is only 22.2 years, well below other “young” countries in Asia, such as Malaysia (25), India (25.1), Indonesia (27.8) and Vietnam (28.2)

The Youngest Population in Asia Supports a Strong M edium-term Economic Growth Outlook

Indonesia (27.8) and Vietnam (28.2)

� According to United Nations’ population projections, in 2015 the Philippines will enter its Demographic Window, when the proportion of the population that is of working age is particularly prominent

� The Philippines is the last major Asian economy to benefit from this demographic dividend, which is typically associated withaccelerated economic growthaccelerated economic growth

� Extended periods of high GDP growth in Asia’s fastest-growing economies have coincided with countries entering their DemographicWindows*

� On average, growth over the 10-year period following the beginning of the Demographic Window has been 7.3%

10.39.010

12

� On average, growth over the 10-year period following the beginning of the Demographic Window has been 7.3%

Average GDP Growth, First 10 Years of Demographic W indow (%)Demographic Windows* in Asia

2015

1995

1980

1965

Hong Kong

Japan

9.08.2 8.1 7.8 7.4 7.0

6.25.4

3.34

6

8

10

2040

2030

2025

2020

2015

2005

1995

1990

1985

1980

Indonesia

Thailand

China

Korea

Singapore

0

2C

hina

Kor

ea

Indi

a

Japa

n

Sin

gapo

re

Hon

g K

ong

Vie

tnam

Indo

nesi

a

Mal

aysi

a

Tha

iland

**

2050

2050

2045

2040

2040

2015

2010

2010

2005

2005

Philippines

India

Malaysia

Vietnam

Indonesia

Chi

na

Kor

ea

Japa

n

Sin

gapo

re

Hon

g K

ong

Vie

tnam

Indo

nesi

a

Mal

aysi

a

Tha

iland

**

*Defined as the period when population under 15 years old drops below 30% and population over 65 years old is less than 15%.

Sources: UN World Population to 2300, UN World Population Prospects (2010 Revision), IMF World Economic Outlook, Japan Cabinet Office

20502015

1960 1980 2000 2020 2040 2060

Philippines

**Thailand is an exception, as its Demographic Window began in 1995, and thus its high-growth period was interrupted by the Asia Financial Crisis of 1997-98

Demographic Profile will Continue to Support Growt h The Philippines is the last major economy in Asia to enter its demographic “sweet spot”

Projected Median Age, 2030Share of Population, Ages 15 to 64

2012 2030

China

CambodiaMyanmar

Malaysia

70%

65%

PhilippinesIndonesia

South Korea

Japan

60%

Japan

20302012

55%

24

20302012

Source: Bloomberg Business week, United Nations

Challenges to Pursuit of Inclusive Growth The Philippines is well-placed to weather external headwinds

Challenging Global Environment in 2012

� Slower growth of global output or income and

Bright Spots

� Faster growth in emerging markets than in � Slower growth of global output or income and consumption

– Debt crisis and deleveraging in Europe

– Uncertain labor market and fiscal cliff in the US

� Faster growth in emerging markets than in advanced economies

� Sustained growth in ASEAN-5 and Middle East

� Sufficient fiscal space – Uncertain labor market and fiscal cliff in the US

– Slowdown in major emerging Asian economies e.g., China , India

� Weak growth of industrial production

� Sufficient fiscal space

� Stable commodity prices

–Slower external demand growth� Weak growth of industrial production

– Inventory drawdown

� Rise in trade protectionismReinforcing Indicators

� Improving governance & competitiveness indicators

� Credit rating upgrades

Reinforcing Indicators

� Credit rating upgrades� Historically-high stock market indices � Upbeat private sector

Sources: National Economic and Development Authority , Bangko Sentral ng Pilipinas, IMF WEO, World Bank, UN,

25

Funding the Social Contract Governance reforms are at the core of economic policy making and budget allocation

� Proposed 2013 budget Zero-

Instituting a Results-driven Budget in 2013 to Mini mize Waste and Genuinely Address Poverty and Inequal ity

� Proposed 2013 budget

– PhP2.006 tr; 10.5% higher than the PhP1.816 tr 2012 budget

– Equivalent to 16.8% of GDP

Zero-Based

Budgeting Approach

– Equivalent to 16.8% of GDP

� Greater stakeholder participation in budget preparation and execution for stronger transparency 2.7%

6.1%transparency

� Well defined key component programs per Key Result Area, intended outputs and outcomes

2.7%6.1%

2.1%9.0%

15.4%

ProgramBudgetingApproach

outcomes

� Adopts key strategies to accelerate the delivery of results, e. g., assigning DPWH as the principal infrastructure agencyas the principal infrastructure agency

Growth Rate

26

Rate

Source: 2013 Proposed Budget in Brief, Department of Budget and Management Note: Actual figures apply for 2009 – 2011; GAA figures for 2012 and proposed National Expenditures Program figures for 2013

26

Funding the Social Contract Advancing the national development agenda through the budget

Results-Focused Budget of 2012, by Sector Proposed Empowerment Budget of 2013, by Sector

� Social Services sector receives bulk of the budget allocation at 31.3% of the total budget

� Administration accelerates infrastructure

� Bulk of the proposed 2013 budget once again devoted to Social Services in line with focused campaign on poverty alleviation� Administration accelerates infrastructure

development with capital outlays allocation up by 24.3% over 2011

� Specific allocation to infrastructure expenditure up

campaign on poverty alleviation

� Capital outlays up 15.7% to PhP380 bn to boost momentum in the transport, tourism and agriculture sectors

27

� Specific allocation to infrastructure expenditure up 40.6% over 2011

Source: Department of Budget and Management Note: Other current operating expenditures include allotment to LGUs, subsidies and interest payments

sectors

� Debt service allocation continues to decline

27

Funding the Social Contract Advancing the national development agenda through the budget

The 2013 Proposed Budget by Expense Class

ParticularsLevels (PhP Bn) Share (%) Growth

(%)

• Allocation for infrastructure and other capital proposed to (%)

2012 2013 2012 2013

Current Operating Expenditures

1,464.7 1,599.5 80.7 79.7 9.2

Personal Services 593.5 641.3 32.7 32.0 8.0

increase by 17.5% in support of government’s focus on making long term investments in infrastructure

Personal Services 593.5 641.3 32.7 32.0 8.0

MOOE 266.6 313.3 14.7 15.6 17.5

Subsidy to GOCCs 19.7 42.3 1.1 2.1 114.3

Allotment to LGUs 218.6 241.8 12.0 12.1 10.6

• The 2013 proposed budget will support the full year implementation of the Salary

Allotment to LGUs 218.6 241.8 12.0 12.1 10.6

Interest Payments 333.1 333.9 18.3 16.6 0.2

Tax Expenditure Fund 33.0 26.9 1.8 1.3 (18.6)

Capital Outlays 328.3 380.0 18.1 18.9 15.7

Standardization Law III and the hiring of teachers, nurses, airport and security personnel, policemen and other needed public servants Capital Outlays 328.3 380.0 18.1 18.9 15.7

Infra and Other CO 252.4 296.7 13.9 14.8 17.5

Equity to GOCCs 2.1 2.0 0.1 0.1 (2.7)

public servants

• Share of Local Government Units to increase due to improved revenue collections Capital Transfers to

LGUs71.3 76.3 3.9 3.8 6.9

CARP LO Compensation

2.5 5.0 0.1 0.2 100.0

improved revenue collections in 2010, the base year for the 2013 Internal Revenue Allotment computation

28

Compensation

Net Lending 23.0 26.5 1.3 1.3 15.2

TOTAL 1,816.0 2,006.0 100.0 100.0 10.5

Source:: Budget of Expenditures and Sources of Financing 2013

Funding the Social ContractAdvancing the national development agenda through the budget

The 2013 Proposed Budget , Top 10 Departments

2012 Program 2013 Program� Strong commitment to Department NotesLevel

(PhP Bn )Rank

Level (PhP Bn)

Rank

Education 238.8 1 292.7 1 1,2

Public Works and

� Strong commitment to

– Increase allocation for priority sectors to meet the Millennium Development Goals targets and bring the spending Public Works and

Highways126.4 2 152.9 2 3,4,5

National Defense 108.1 3 121.6 3 1,6

Interior Local 99.8 4 121.1 4 1,6

Goals targets and bring the spending levels for infrastructure, education and health to more respectable levels

– Transform higher education system Government99.8 4 121.1 4 1,6

Agriculture 61.4 5 74.1 5 4,5

Health 45.8 7 56.8 6 1,4.5

– Transform higher education system and technical vocational education programs to ensure a competent, well-trained and globally competitive labor force Social Work and

Development48.8 6 56.2 7

Transportation and Communications

34.7 8 37.1 8 1,4,5,6

force

Communications

Finance 23.6 9 33.2 9 1,4

Environment and Natural 17.5 10 23.7 10 1,6

Notes:

1/ Includes allocations from the Miscellaneous Personnel Benefits Fund2/ Gross of School Building Program transferred to DPWH3/ Net of School Building Program transferred from DepEd

29

Natural Resources

17.5 10 23.7 10 1,63/ Net of School Building Program transferred from DepEd4/ Includes allocations from Budgetary Support to Government Corps5/ Includes allocations from Priority Social and Economic Projects Funds6/ Includes allocations from the Pension and Gratuity Fund


Funding the Social ContractAdvancing the national development agenda through the budget

Allocation by Region (PhP Bn)

Particulars 2012 2013 Growth

Regionalized Budget 770.5 990.3 28.5Regionalized Budget 770.5 990.3 28.5

% of Total 42.4 49.4

NCR 71.1 129.4 82.0

RO I 42.5 49.7 16.9

• The regional budgetary allocations

– Up 28.5 % to PhP990.3 bn in CAR 24.9 31.7 27.3

RO II 36.6 44.8 22.4

RO III 64.9 88.9 37.0

RO IV 107.8 130.2 20.8

– Up 28.5 % to PhP990.3 bn in 2013

– Constitutes 49.4% of the proposed 2013 budget RO IV 107.8 130.2 20.8

RO V 51.7 63.2 22.2

RO VI 60.8 74.4 22.4

RO VII 51.6 63.0 22.1

proposed 2013 budget

– Allocations for Visayas and Mindanao grew by 21.8 % and 22.1% respectively

RO VIII 46.7 56.5 21.0 RO IX 33.5 42.1 25.7 RO X 41.1 48.1 17.0 RO XI 35.2 46.3 31.5 RO XII 35.2 43.5 23.6 RO CARAGA 29.2 34.7 18.8 ARMM 37.7 43.8 16.2

Non-regionalized 1,045.5 1,015.6 (2.9)

30

Nationwide 491.6 524.2 6.6 Central Office 553.9 491.4 (11.3)

TOTAL 1,816.0 2,006.0 10.5


The President’s Social Contract with the Filipino P eopleStrategic programs in support of the five key result areas

Key Result Area Amount Program

Anti-Corruption and Transparent, Accountable and Participatory Governance

PhP 238 mn

PhP 6.5 bn

Digitization of financial processes, e.g. National Payroll System, Cash and Treasury Management System, Government Integrated Financial Management Information System

Implementation of an integrated tax compliance and enforcement program and Governance PhP 6.5 bn Implementation of an integrated tax compliance and enforcement program and enhancement of revenue collections

Poverty Reduction PhP 44.3 bn Pantawid Pamilyang Pilipino Program (4Ps) to benefit 3.8mn poor householdsPoverty Reduction and Empowerment of the Poor and Vulnerable

PhP 44.3 bn

PhP 26.3bn

Pantawid Pamilyang Pilipino Program (4Ps) to benefit 3.8mn poor households

Basic Educational Facilities and School Building Program to construct and rehabilitate 30,789 classrooms

PhP 12.6bn

rehabilitate 30,789 classrooms

Annual premium subsidy of 5.2mn indigent families

PhP 10.1bn Special housing programs for the resettlement of 20,000 informal settler families living in danger zones in Metro Manila

31

Source: The President’s Budget Message Fiscal Year 2013

The President’s Social Contract with the Filipino P eopleStrategic programs of five key result areas


Rapid, Inclusive and Sustained Economic

PhP 106.5bn Preservation of existing road network, preventive maintenance of 1,611km road, rehabilitation of 1,018km road, cementing of 1,175km road, reconstruction and upgrade Sustained Economic

Growth

PhP 2.0bn

rehabilitation of 1,018km road, cementing of 1,175km road, reconstruction and upgrade of temporary bridges to permanent structures

Allocation for LRT Line 2 East Extension project (Santolan to Masinag), P3.3bn for LRT Line 1 South Extension (Baclaran to Cavite) to improve public transport system and decongest roads

PhP 12.0 bn

PhP 3.5 bn

decongest roads

Construction, improvement and rehabilitation of access roads to 164 strategic tourism destinations

Construction, rehabilitation of 15 airports and 9 ports and wharvesPhP 3.5 bn Construction, rehabilitation of 15 airports and 9 ports and wharves

PhP 15.3 bn Agricultural banner programs to help farmers produce 20mn metric tons (MT) of rice in 2013, 8.4mn MT of corn, 5.4mn MT of fishery products and 3.13mn MT of coconut-based products

PhP 6.3bn

PhP 37.1bn

Electrification projects under the Sitio-Electrification Program and Barangay line Enhancement program to benefit at least 128,280 households

Budget for State Universities and Colleges (SUCs) to improve the capabilities and skills of graduatesPhP 37.1bn of graduates

32

Source: The President’s Budget Message Fiscal Year 2013

The President’s Social Contract with the Filipino P eopleStrategic programs of five key result areas


Just and Lasting Peace and the Rule of

PhP 13.4bn ARMM Investment Plan with interventions in health, education and infrastructurePeace and the Rule of Law PhP 5.0 bn

PhP 47.2bn

PhP 2.1bn

AFP Modernization Program to provide the best equipment, seacraft and aircraft

Internal security

Territorial defensePhP 2.1bn

PhP 91.7 bn

PhP 17.8 bn

Territorial defense

Strengthening the capability of PNP to enforce laws to prevent, suppress and investigate crimes

Earmarked for the Judiciary to clear docket and ensure that the 309,721 cases under PhP 17.8 bn Earmarked for the Judiciary to clear docket and ensure that the 309,721 cases under trial at the Supreme Court and the Lower Courts are resolved and for faster resolution of cases at the Court of Appeals and Court of Tax Appeals

Integrity of the Environment and

PhP 1.5 bn Implementation of the Unified mapping project targeting 18 major river basins to support the production of topographic maps covering 5.4mn hectares as inputs for simulations of Environment and

Climate Change Adaptation and Mitigation PhP 7.5bn

PhP18.2bn

the production of topographic maps covering 5.4mn hectares as inputs for simulations of hazards such as landslides and floods

Calamity Fund

Flood control projects, including the construction of 20,043 lineal meters (lms) of dikes PhP18.2bn Flood control projects, including the construction of 20,043 lineal meters (lms) of dikes and seawalls, 16.671 lms of revetment and slope protection and flood control structures covering 4,233 cubic meters of waterways and creeks

33

Source: The President’s Budget Message Fiscal Year 2013 33

Fiscal Program: Consolidation Efforts on Track Creating a sustainable fiscal revenue and spending path

Levels (PhP Bn) Percent of GDP Growth Rate (%)

National Government Fiscal Program

• Keeping the deficit within manageable levels is a

ParticularsRate (%)

2012-2013

2012Program

2013Proposed

2012Program

2013Proposed

Revenues 1,560.6 1,780.1 14.5 14.9 14.1

manageable levels is a fundamental goal of the government

• The National Government Bureau of Internal Revenue

1,066.1 1,238.6 9.9 10.4 16.2

Bureau of Customs 347.1 397.3 3.2 3.3 14.5

Privatization 2.0 2.0 0.0 0.0 -

• The National Government budget is designed to keep the ROP on track to achieve a deficit of 2.0% of GDP by 2013

Privatization 2.0 2.0 0.0 0.0 -

Others 145.4 142.2 1.4 1.2 (2.2)

Disbursements 1,839.7 2,021.1 17.1 16.9 9.9

of GDP by 2013

• Tax collection effort in 2013 is expected to reach 13.8% of GDP

Current Operating Expenditures

1,442.6 1,585.0 13.4 13.3 9.9

o..w. Interest Payments

317.7 333.9 3.0 2.8 5.1

Capital Outlays 374.1 409.6 3.5 3.4 9.5

Net Lending 23.0 26.5 0.2 0.2 15.2

Surplus/(Deficit) (279.1) (241.0) (2.6) (2.0) (13.7)

34Source:: Budget Expenditures and Sources of Financing 2013

Surplus/(Deficit) (279.1) (241.0) (2.6) (2.0) (13.7)

Memo Item: GDP 10,734.2 11,951.9

Financing Program: Domestic/Foreign Mix Effectively Managed Increasing reliance on domestic financing sources

National Government Financing Program 2012 - 2013

• Proposed foreign-to-domestic borrowing mix maintained at

Program Proposedborrowing mix maintained at 25:75 in 2013

• Prudent strategies to finance the annual funding

Program Proposed

PhP Mn 2012 2013

Total Net Financing Requirement 279,106 241,000the annual funding requirement minimize foreign exchange risk and increase funding self-sufficiency

Gross Foreign Borrowings 181,435 189,761

Net Foreign Borrowings 118,150 80,845• Adequate liquidity in the

domestic financial market allows increased reliance on local funding sources

Gross Domestic Borrowings 535,074 567,958

Net Domestic Borrowings 215,190 227,530

Net Financing 333,340 308,375

Change in Cash 5,768 10,248

Financing Mix (%)

Foreign 25 25

35Source:: Budget Expenditures and Sources of Financing 2013

Domestic 75 75

Trade and Investments: Latest DevelopmentsImproving the business environment to increase investments

� 2012 Investments Priorities Plan (IPP) was approved in June 2012 with the theme “A New Day for Investments: Coherent, Consistent, Creative”

Actual (In PhP Bn)

Jan-Jun

2009 – 2012 (Jan-Jun) Performance

Creative”• Agriculture/Agribusiness and Fishery • Creative Industries/Knowledge-Based Services • Shipbuilding• Mass Housing

Outcome 2009 2010 2011Jan-Jun

2012

BOI-PEZA total approved investments

299.54 506.49 657.27 238.73

• Iron and Steel • Energy• Infrastructure• Research and Development • Green Projects

investments

• 7 outbound investment promotion missions conducted in Asia; several companies expressed interest to develop projects in areas such as hydropower energy, solar energy, e-• Green Projects

• Motor Vehicles • Strategic Projects• Hospital/Medical Services• Disaster Prevention, Mitigation and Recovery Projects

� 34 investment projects worth PhP141.3 bn previously approved by

projects in areas such as hydropower energy, solar energy, e-vehicle, BPO, cornstarch and corn syrup production, shipbuilding

• Implemented the rollout of the DTI-DILG Joint Memorandum Circular on the formulation of the Local Investments and Incentives Code (LIIC) through the crafting of guidelines and

� 34 investment projects worth PhP141.3 bn previously approved by BOI were realized during S1 2012 and expected to generate some 13,712 jobs

� 322 companies visited the Philippines through inbound missions (85 individual company visits; and 23 multi-company delegations

Incentives Code (LIIC) through the crafting of guidelines and conduct of training programs for LGUs

• Streamlined BOI registration process, reducing 20 working days process of application for registration to just 5 days.

• Conducted Industry Development Forum to jumpstart the industry development programindividual company visits; and 23 multi-company delegations

composed of 237 individual companies/organizations) with interest in IT/BPO, R&D, Green Energy, Manufacturing, Infrastructure and Aerospace

industry development program• Reduced processing time of business name registration to 15

minutes from an average of 4-8 hours. From Jan-Jul 2012, 197,180 business names were registered, 87% were new and 13% were renewalsand 13% were renewals

Source: Board of Investments, Department of Trade and Industry36

Trade and Investments: Latest Developments Ensuring sustainable employment through enterprise development and strong private sector partnership

2011 - 2013 Targets

Actual Targets• ASENSO (formerly known as SULONG) released Actual Targets

Year 2011 Jan-Jun 2012

2012 2013

MSMEs 64,931 33,884 70,804 77,884

• ASENSO (formerly known as SULONG) released PhP 254.37 bn to SMEs and supported an estimated 3.65 million jobs since its inception in 2004. For the period Jan-Jun 2012, the program released PhP 12.16 bn to SMEs and supported 162,719 jobs. MSMEs

assisted64,931 33,884 70,804 77,884

Jobs created 535,494 321,994 523,600 575,960

bn to SMEs and supported 162,719 jobs.

• Assisted 4,619 microenterprises in S1 2012 through the Rural Microenterprise Promotion Program (RuMEPP). (RuMEPP).

• Provided 334 MSMEs and 194 non-MSMEs with design services and technical assistance in S1 2012design services and technical assistance in S1 2012

• Conducted SME caravans attended by 19,319 participants in 26 provinces (2011-Jul 2012)


Trade and Investments: Latest Developments Double Exports: Move up the value chain

• Conducted 163 briefing sessions on Doing Business in Free Trade Areas in Jan-Aug 2012

2012 - 2014 Targets and Goals2012

• Generated USD118.30 million sales in Jan-May 2012 through trade promotion activities

OutcomeActual Targets

2011 2012 2013 2014May 2012 through trade promotion activities

• Developed 490 new importers for Philippine products, served 1,279 export opportunities, assisted 5,318 exporters and

Merchandise exports increased

Value (USD Bn)

48.3 53.1 61.1 70.3

Growth (%)

-6.2 10.0 15.0 15.0

opportunities, assisted 5,318 exporters and businesses and sent 292 buyers to the country

• Programs and Strategies:

(%)

Service exports increased

Value (USD Bn)

15.5 17.8 20.4 22.5

Growth (%)

9.6 15.0 15.0 10.0

• Develop linkages for natural, organic, and certification-enabled products in tourism services

• Widen the base of Philippine exports or

(%)

Total Exports Value (USD Bn)

63.8 70.9 81.5 92.7

Growth -1.7 11.0 15.0 14.0• Widen the base of Philippine exports or diversify their products to conform to market requirements

• Doing Business in Real Time

Growth (%)

-1.7 11.0 15.0 14.0


Five Priority Areas for Economic Development and Jo b GenerationHarnessing the industry sector’s potentials as engine of growth

39Source: Department of Budget and Management, 2013 Proposed Budget in Brief

Semiconductor and Electronics Manufacturing Recent Performance/Accomplishments, Goals and Targets, Market Opportunities and Strategies and Programs

Recent Performance/

• The Philippine electronics industry remains to be a major contributor to the economy. For Jan-Jun 2012, electronics exports reached US$12.45 billion or 45.40% of total merchandise exportsPerformance/

Accomplishmentselectronics exports reached US$12.45 billion or 45.40% of total merchandise exports

• For the year 2011, direct employment in the industry is recorded at 516,000 registering a 3.2% growth and investments in the industry reached its highest value ever at USD2.45 bn

Goals and Targets • Target of 10 to 15 percent growth in 2012 to reach US$50 billion by 2016; Can potentially employ 1.1 million workforce by 2016workforce by 2016

• Additional revenues expected from high value chain export (Integrated Circuit design)

Market Opportunities

• The replenishment of inventory and continuing development of killer apps are expected to drive demand in the electronic industry

• Automotive electronics is on an upward trend as people buy cars because of their electronics features (safety, • Automotive electronics is on an upward trend as people buy cars because of their electronics features (safety, etc.); expected to grow by 25% onwards

• High Definition Digital business is also expected to go up• The current worldwide trend of rising personal consumption expenditure indices due to elections in many

countries is expected to have a spill over effect on electronics• The rising cost of labor in China and 2011 floods in Thailand have made the Philippines an ideal relocation site • The rising cost of labor in China and 2011 floods in Thailand have made the Philippines an ideal relocation site

due to its highly educated and competent English-speaking labor; excellence in customer service and communications skills; and highly skilled manpower pool

Strategies and Programs

• Provide consistent policy agenda to enforce incentives laws and regulations• Continue TESDA industry training program on unified competency developmentPrograms • Continue TESDA industry training program on unified competency development• Continue the implementation of the IC Design Training Program (PH-Taiwan Collaboration) with ERDT

university participants to develop pool of IC designers in the Philippines• Collaborate with industry key players and other stakeholders in the supply chain analysis of the industry

towards its development• Integrated government-industry strategy for market growth in the promotion of the sector

40

• Integrated government-industry strategy for market growth in the promotion of the sector• Manufacturing Excellence Drive; Best practice sharing• People productivity programs• Power/water conservation and cost reduction

Source: Bureau of Export Trade Promotion, Department of Trade and Industry

Agriculture and Fisheries: Thrusts, Priorities, and Strategies for FY 2013Investing in the future, securing the food of the Filipino people

Key Result Area Strategies

Food Staples Sufficiency • Five-in-two program: 5 croppings in 2 yearsFood Staples Sufficiency Program (FSSP)

• Five-in-two program: 5 croppings in 2 years• Frontload investments in irrigation, postharvest facilities and mechanization• Focus on longer-term investments• Engage farmers associations/irrigators associations, LGUs and the private sector proactively• Encourage the production and consumption of other food staples• Implement NFA reforms• Implement NFA reforms

Livestock and Poultry • Conserve and improve genetic materials• Prevent, control, and eradicate diseases • Establish postharvest facilities• Explore and promote alternative nutrition technologies• Explore and promote alternative nutrition technologies• Pursue possible export opportunities

Corn • Promote the production of white corn and cassava to ease the demand on rice• Encourage clustering approach to improve productivity• Promote cost-reducing technologies for yellow corn• Promote quality planting materials for cassava as food, fuel, and fuel substitutes

High-Value Crops • Establish production facilities• Establish postharvest and processing facilities• Conduct R & D activities• Participate in implementing the National Greening Program (NGP)• Participate in implementing the National Greening Program (NGP)

Fisheries • Regenerate marine resources through coastal resource management and aqua-silviculture projects• Protect marine resources through effective enforcement of fishery laws• Increase production through mariculture parks, hatcheries, and nurseries• Conduct R & D activities along stages of the value chain

41

• Conduct R & D activities along stages of the value chain• Enhance food safety and product quality monitoring

Source: Department of Agriculture

Agriculture and Fisheries: Thrusts, Priorities, and Strategies for FY 2013Investing in the future, securing the food of the Filipino people


Core Public • Irrigation – activities shall include generation of new areas; rehabilitation, repairs/restoration, maintenance of Core Public Investments

• Irrigation – activities shall include generation of new areas; rehabilitation, repairs/restoration, maintenance of existing systems; and the installation/construction of small scale irrigation systems;

• More durable market access infrastructure like farm-to-market roads, fishports, postharvest facilities and equipment

• Strategically located market infrastructure such as the multi-commodity farm and fish trading centers that enable small producers to capture their just share of profits, as well as result in cheaper prices for consumersenable small producers to capture their just share of profits, as well as result in cheaper prices for consumers

• Increase support to an integrated research & development and extension program by upgrading our regional integrated agricultural research centers (RIARCs) and other DA research centers, in collaboration with SUCs and LGUs

• Sharpen regulatory competence through technical and legal training, alongside improvements in laboratories and equipmentand equipment

• Wider promotion of high quality genetic materials like high-yielding variety seeds, planting materials, fingerlings, and livestock

• Strengthen the crop, livestock, and fisheries protection and disease prevention programs (e.g. integrated pest management, including bio-control)management, including bio-control)

• Strengthen soil and water conservation and management program (e.g. erosion control measures, soil fertility mapping, land degradation assessment)

Investments in • Empower farmers/producers with technological information and advice that will provide them options, from Agriculture and Fisheries Human Resources

conventional to organic, and allow them to intelligently choose the system of production that suits them• Improve farmers’ and fishers’ access to credit through institutional strengthening and suitable financing

mechanisms • Implement new farmers and fishers program to broaden the successor generation• Capacitate the farmers and fishers to do higher value-adding activities by providing adequate marketing

42

• Capacitate the farmers and fishers to do higher value-adding activities by providing adequate marketing support through access to market information and trading centers and strengthening of food terminals

Source: Department of Agriculture

Agriculture and Fisheries: Thrusts, Priorities, and Strategies for FY 2013Investment in the future, securing the food of the Filipino people

Key Result Area

Strategies

Climate Change

• Build capacities in risk assessment and disaster management utilizing Remote Sensing, GIS, and GPS technologies and establish the Climate Risk Information System of the DepartmentChange

Initiativesestablish the Climate Risk Information System of the Department

• Invest in climate-resilient equipment and infrastructures, with improved design standards and construction protocols• Invest in technology development and extension, e.g. the development of climate-resilient crops, livestock, poultry and

fisheries, use of biotechnology, soil and water conservation practices, including early warning systems and evacuation protocolsprotocols

• Provide access to loans and develop risk transfer mechanisms such as weather based insurance, and even expand insurance coverage from crops to livestock and aquaculture

• Strengthen and modernize data collection to have the ability to track and conduct quick and effective surveys on a national basis

• Intensify Climate Change information, education and communication (IEC) efforts • Intensify Climate Change information, education and communication (IEC) efforts

Enhanced Policy Environment and

• Harmonize DA’s support services at the field level with that of: • DAR and DENR to eliminate wasteful duplication, resulting in better quality of service and wider coverage;• DPWH on flood control and water impounding for irrigation; and • DSWD on cash-for-work in paddy construction, irrigation canal desilting and coconut replanting and salt-making for and

Governance• DSWD on cash-for-work in paddy construction, irrigation canal desilting and coconut replanting and salt-making for

coconut fertilization• Support passage of the priority legislatures and policy instruments, to wit:

• National Land Use Law• NFA Reforms• Rationalization of the functions, structure and mandate of the 3 rural development agencies (DA, DAR, DENR)• Rationalization of the functions, structure and mandate of the 3 rural development agencies (DA, DAR, DENR)• Accelerated Irrigation Act• Food Safety and Food Labelling Law

43Source: Department of Agriculture

Tourism IndustryLatest Achievements

2012 Target 2012 Target • Visitor arrivals in S1 2012 grew 11.68% to 2,143,506

Latest Achievements

2012 Target 2012 Target 4.1 4.1 MnMn

Foreign VisitorsForeign Visitors

• The biggest volume of arrivals was registered in Jan 2012 at 411,064 and the highest growth rate of 17.54%.

• Top 5 markets: • Korea : 22.15% share of total inbound traffic; 474,685 arrivals

Foreign VisitorsForeign Visitors• Korea : 22.15% share of total inbound traffic; 474,685 arrivals • U.S. : 16.53%; 354,259 arrivals• Japan: 9.12%; 195,504 arrivals • China : 7.03%; 150,749 arrivals• Taiwan: 5.33%; 114,269 arrivals

• Other major contributors:• Australia : 92,648 arrivals• Singapore : 73,015 arrivals• Canada : 65,503 arrivals • Canada : 65,503 arrivals • Hong Kong : 57,790 arrivals • UK : 57,181 arrivals.

• High growth markets include Russia with 42.92% growth in arrivals, Saudi Arabia with 18.94%, Germany with 12.61% and Malaysia with Saudi Arabia with 18.94%, Germany with 12.61% and Malaysia with 11.96%

• Arrivals of Filipinos permanently residing abroad reached 110,703, comprising 5.16% of the total

Source: www.tourism.gov.ph ; Department of Tourism

National Tourism Development PlanStrategic Directions and Action PlansStrategic Directions and Action Plans


Improve market access and connectivity

• Expand capacity of secondary international airports• Expand connectivity to key growth markets• Implement strategic access infrastructure between secondary airports and tourist destinationsconnectivity • Implement strategic access infrastructure between secondary airports and tourist destinations

Develop and market competitive tourist destinations and

• Implement destination infrastructure program• Develop diversified products• Implement mandatory accreditationdestinations and

products• Implement mandatory accreditation• Safeguard natural environmental and vulnerable groups• Implement market strategy

Improve tourism • Institutionalize roles of Department of Tourism and Local Government UnitsImprove tourism institutions, governance and human resources

• Institutionalize roles of Department of Tourism and Local Government Units• Develop the competence of tourism workforce• Improve safety and security measures for tourists

Source: Department of Tourism

InfrastructureGood governance reform and anti-corruption program

Key Result Area StrategiesKey Result Area Strategies

Right Projects • Objective programming criteria based on planning applications (i.e. PMS-HDM 4)• Project Status available on the DPWH Website• Public consultation and disclosure on public expenditure (eNGAS) and project identification up to • Public consultation and disclosure on public expenditure (eNGAS) and project identification up to

project completion

Right Cost • Detailed Design, Program of Work and Detailed Cost/Estimates prepared/evaluated based on restructured Indirect/Direct Costsrestructured Indirect/Direct Costs

• Open, Transparent and Competitive Bidding which resulted in savings

Right Quality • 24/7 DPWH Call Center (165-02) to address queries and complaints• Outsourced project inspection and quality assurance• Outsourced project inspection and quality assurance• Developing ISO Standards of DPWH Offices

Right on Time • Accredited 47 Civil Society Organizations (CSOs) partners for monitoring• Bantay Lansangan Road Sector Report Card Rating• Bantay Lansangan Road Sector Report Card Rating• Close monitoring of project implementation

Right People • Professionalize DPWH Employees

Source: Department of Public Works and Highways

BETTER QUALITY AND SAFER NATIONAL ROADS AND BRIDGES PROGRAMInfrastructureBetter quality and safer national roads and bridges program

Key Result Area StrategiesKey Result Area Strategies

Upgrade Quality • Adopted new standards for concrete pavement thickness from 230mm to 280mm

• Outsourced project inspection and quality assurance• Outsourced project inspection and quality assurance• Developed new construction design standards and

specifications – upgrade drainage specifications, slope protection & soil erosion control, widening of national roads

• Strengthening/retrofitting of national bridges to comply with • Strengthening/retrofitting of national bridges to comply with international seismic standards

Safety • SAFER ROADS PROGRAM• Construct loading and unloading bays for road safety• Construct loading and unloading bays for road safety• Improve road safety using Traffic Accident Recording and

Analysis System (TARAS) and International Road Assessment Program (iRAP)

• Enforce anti-overloading provision of the law• Enforce anti-overloading provision of the law• Upgrading of temporary bridges to permanent structures


BETTER QUALITY AND SAFER NATIONAL ROADS AND BRIDGES PROGRAMInfrastructureStrategic Convergence Program

Strategic Partner Convergence ProgramStrategic Partner Convergence Program

DOT TOURISM CONVERGENCE PROGRAM:• Support to designated strategic Tourism Destinations is included

in the DPWH Budget;in the DPWH Budget;• Memorandum of Agreement (MOA) between DPWH and DOT

signed• Selection of projects based on Tourism Road Infrastructure

Project Prioritization Criteria

DA/NIADAR

WATER CONVERGENCE PROGRAM:• Coordinate development of Flood Control, Small Water

Impounding Projects (SWIPs) & Watershed Protection for more effective use of water resources and flood managementDAR

DENReffective use of water resources and flood management

• Integrated River Basin Management Plan

DOTC INTEGRATED TRANSPORT SYSTEM:• Support for access to major airports and RORO ports is included

in the DPWH Budget


BETTER QUALITY AND SAFER NATIONAL ROADS AND BRIDGES PROGRAMInfrastructureStrategic Convergence Program

Strategic Partner Convergence Program

MMDA FLOOD MANAGEMENT PROGRAM:• Coordinate flood control measures and needed infrastructure in

flood prone areas of Metro Manila

DSWD COMMUNITY BASED EMPLOYMENT PROGRAM:• Prioritize CCT Beneficiaries for Labor Employment on DPWH

projectsprojects• Establish small micro-enterprises for road maintenance works

DNDAFP

PEACE AND PROSPERITY PROGRAM:• Peace and Prosperity Program in Mindanao and other Conflict-AFP • Peace and Prosperity Program in Mindanao and other Conflict-

Affected Areas• Support for infrastructure development in Mindanao is included in

the DPWH Budget

DepED SCHOOL BUILDING PROGRAM:• Assist DepEd in developing PPP School Building Program• Assist DepED in Regular school building program


DPWH Infrastructure AccomplishmentsFY 2012, 2011, 2010 and Prior Years BudgetJuly 2010 – May 2012

Completed Bridge Projects

Length (Meters)

July 2010 – May 2012

National Bridges Local Bridges Total

Made Permanent 2,297 419 2,716

Rehabilitated/Strengthened 6,458 1,839 8,297Rehabilitated/Strengthened 6,458 1,839 8,297

Constructed 7,495 2,340 9,835

Total: 16,250 4,599 20,849Baganga Bridge, Davao

Davao CityTotal: 16,250 4,599 20,849

Completed Road Projects

Length (Kilometers)Projects

National Roads Local Roads Total

Paved 1,535 827 2,362

Rehabilitated/Maintained 2,863 311 3,174

Widened 318 127 445

Constructed 252 272 524El Nido-Taytay-Roxas

50

Constructed 252 272 524

Total: 4,968 1,537 6,505


DPWH FY 2012 Fund Utilization (Disbursements)Target vs. Actual as of July 31, 2012

147160

147

106120

140

H1 2011: PhP 26 Bn H1 2012: PhP 65 Bn Increase: PhP 39 Bn (150%)

78

106

80

100

Bill

ion

Pes

os

Increase: PhP 39 Bn (150%)

3846

37

26

44

27

53

40

60

InB

illio

n P

esos

2621

131016

27

0

20

Total (Full Year) Q1 Q2 Q3 Q4Total (Full Year) Q1 Q2 Q3 Q4

FY 2012 (Target) FY 2012 (Actual) FY 2011 (Actual

51


DPWH FY 2012 Fund UtilizationAbsorptive Capacity as of July 31, 2012

Obligations vs. Allotments 68%

160

180167.67

52.12

Obligations vs. Allotments 68%Disbursement vs. Obligations 69%

120

140

113.63

52.12

(Extended/Cont.)

42.44

In B

illio

n P

esos

60

80

100 78.37

115.55 (Current)

71.19

42.44

(Extended/Cont.)

In B

illio

n P

esos

20

40

60 71.19

(Current)

0

Allotments Obligations Disbursements

NCA/LDDAP/WA/TRA

52


Department of Public Works and HighwaysFY 2013 Infrastructure Priorities and Strategies

On Road Network, Prioritize:

• National Road Upgrading; • Preventive Maintenance of National Roads; • Rehabilitation/Reconstruction of Damaged Pavements; • National Bridges; • Basic Education Facilities; • Access to tourism destinations; • Traffic decongestion in urban centers; • PPP projects based on feasibility studies and master plan; and • PPP projects based on feasibility studies and master plan; and • Access to airports and RORO ports, and food production areas and economic zones

On Flood Control, Prioritize:

• Flood Control and Water Impounding Structures within 20 Major River Basins and 376 Principal River Basins;

• Drainage/Protection Works along National Roads and Bridges

53Source: Department of Public Works and Highways

Pipeline of PPP ProjectsAccelerating the provision of safe, efficient, reliable, cost-effective, and sustainable infrastructure

LGU PROJECTS2 projects | USD 6.28 mn

TRANSPORTATION 8 projects | USD 1.88 bn

2 projects | USD 6.28 mn

AGRICULTURE

EDUCATION1 project | USD 233 mn

AGRICULTURE 2 projects | USD 186.9 mn

HEALTH SECTOR2 projects | USD 126 mn

ROAD NETWORK

WATER SECTOR3 projects | USD 1.08 bn

ROAD NETWORK4 projects | USD 1.29 bn

TOTAL PROJECT COST: approx. USD 4.80 bn*

*Project Costs of O&M of LRT-2, O&M of Puerto Princesa, ITS, Bulacan Bulk Water, El Nido Solid and Liquid Waste Management Project= TBD

TOTAL PROJECT COST: approx. USD 4.80 bn*

5454Source: PPP Center 54

Status of PPP ProjectsAccelerating the provision of safe, efficient, reliable, cost-effective, and sustainable infrastructure

PROJECTINDICATIVE COST (USD)

STATUS

As of 05 September 2012

COST (USD)

PPP for School Infrastructure Project Phase I*The project will involve the design, financing and construction of about 9,300 one storey and two-storey classrooms, including furniture and fixtures, in various sites in Regions I, III, & IV-A. The project aims to supplement the current program of the Department of Education in

239.0 mn Awarded to consortiums of Citicore Holdings Investment, Inc. – Megawide Construction Corp., Inc. and BF Corp. –Riverbanks Development Corp.

A. The project aims to supplement the current program of the Department of Education in reducing classroom backlog. Riverbanks Development Corp.

LRT Line 1 Cavite Extension and O&MThe proposed alignment for the LRT 1 South Extension has an approximate length of 11.7 km from its tie in point at the terminus of LRT Line 1 at the Baclaran Terminal, to the Niyog Station at Bacoor, Cavite, of which approximately 10.5 km will be elevated and 1.2 km will

1.4 bn Bidder due diligence ongoing

Station at Bacoor, Cavite, of which approximately 10.5 km will be elevated and 1.2 km will be at-grade. The total length of the integrated LRT Line 1 will be approximately 32.4 km.

NAIA Expressway Phase IIThe proposed elevated expressway starts at the existing Skyway then generally follows the existing road alignment over Sales Avenue, Andrews Avenue, Domestic Road and NAIA Road and has entry/exit ramps at Roxas Boulevard, Macapagal Boulevard and PAGCOR

377.6 mn Bidder due diligence ongoing

Road and has entry/exit ramps at Roxas Boulevard, Macapagal Boulevard and PAGCOR City. The project provides access to NAIA Terminals I, II, and III and links two existing expressways namely the Skyway and Manila-Cavite Toll Expressway.

NLEx-SLEx ConnectorConstruction of a 13.4 km. 4-lane elevated expressway over the Philippine National Railway (PNR) right of way which starts at Caloocan City and ends in Buendia, Makati City. The

480.5 mn For Submission to ICC

(PNR) right of way which starts at Caloocan City and ends in Buendia, Makati City. The project will connect North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX) to decongest traffic in Metro Manila.

Modernization of Philippine Orthopedic Center*This project involves the construction of a 700-bed capacity super-specialty tertiary

128.3 mn In the process of securing Government approvals

*Approved PDMF Support

This project involves the construction of a 700-bed capacity super-specialty tertiary orthopedic hospital to be located within the National Kidney and Transplant Institute (NKTI) Compound along East Avenue, Quezon City.

approvals

55

Source: PPP Center 55



STATUS


Vaccine Self-Sufficiency Project Phase II*The project is envisioned to accelerate progress in vaccine production in the Philippines, and ensure vaccine sufficiency in the country. VSSP II is expected to reduce overall vaccine procurement costs of finished vaccines through local refilling, labeling, and packaging of the following vaccines: Pentavalent (DPT-HepB-Hib, Diptheria, Pertussis,


packaging of the following vaccines: Pentavalent (DPT-HepB-Hib, Diptheria, Pertussis, Tetanus-Hepatitis B and Hemphylus Influenza B), Tetanus Toxoid (TT), Single HepB.

Cavite-Laguna ExpresswayInvolves the construction of two expressways. One is on the Cavite Side which is a 27.5km, 4-lane highway from the terminus of R-1 Expressway in Kawit, Cavite to Aguinaldo Highway at Silang, Cavite. For the Laguna Side, this will involve the


Aguinaldo Highway at Silang, Cavite. For the Laguna Side, this will involve the construction of a 14.3km, 4-lane at-grade expressway. The CALA Expressway will be connected to SLEX near Sta. Rosa, Laguna.

O&M of Angat Hydro-Electric Powerplant Turbines 4&5*The project involves the repair and privatization of the operation & maintenance of the

38.1 mn On-going ICC Project ReviewThe project involves the repair and privatization of the operation & maintenance of the existing auxiliary turbines owned by MWSS which are installed in the AHEPP. These auxiliary turbines contribute 28 megawatts to the Luzon Grid (10 MW from AN-4 & 18 MW from AN-5). The proposed project also entails procurement, installation, operation and maintenance of the second turbine for the Macua mini-hydro power plant.

Automatic Fare Collection System* 42.9 mn For submission to NEDAAutomatic Fare Collection System*Decommissioning of the old magnetic-based ticketing system and replacing the same with contactless-based smart card technology on LRT Lines 1 and 2 and MRT 3, with the introduction of a centralized back office that will perform apportionment of revenues.

42.9 mn For submission to NEDA

Mactan Cebu International Airport Passenger Terminal Building*Construction of a new world-class passenger terminal building in Mactan, Cebu

241.7 mn For submission to NEDA


Construction of a new world-class passenger terminal building in Mactan, Cebu International Airport with a capacity of about 8 million passengers/year.




STATUS


Enhanced O&M Panglao Airport* Operation and Maintenance of the New Bohol (Panglao) Airport.

190.5 mn Finalization of Project Structure On-going

O&M of Laguindingan Airport*Operation and maintenance of the newly constructed international-standard airport in 42.9 mn Finalization of Project Structure On-goingOperation and maintenance of the newly constructed international-standard airport in Laguindingan, Misamis Oriental.

42.9 mn Finalization of Project Structure On-going

Grains Central ProjectThe project will establish grains bulk handling systems with corn grains processing centers and transshipment stations in major corn producing areas and selected sea ports by upgrading, expanding and enhancing the existing operations in at least fifteen (15)

29.8 mn Ongoing Preparation of Feasibility Studyby upgrading, expanding and enhancing the existing operations in at least fifteen (15)

corn postharvest processing and trading centers.

Establishment of Cold Chain Systems*Construction and operationalization of Cold Chain Centers to be located in major production and consolidation areas of agri-fishery products. The Centers will be equipped with the required facilities and machineries for minimal processing of livestock, fisheries

121.2 mn Ongoing Preparation of Feasibility Studywith the required facilities and machineries for minimal processing of livestock, fisheries and high value crops.

O&M of LRT Line 2Operation and Maintenance of the existing LRT Line 2 and the proposed 4 km extension from Santolan, Pasig to Masinag, Antipolo. The existing 13.8 km Line 2 runs along the TBD Ongoing Preparation of Feasibility Studyfrom Santolan, Pasig to Masinag, Antipolo. The existing 13.8 km Line 2 runs along the Recto Station in Manila to the Santolan Station in Pasig, along Recto Avenue, Magsaysay Boulevard and Marcos Highway.

TBD Ongoing Preparation of Feasibility Study

O&M of Puerto Princesa AirportThe project involves the privatization of the operation and maintenance of the airport. The existing Puerto Princesa Airport will be upgraded/ improved into an international

TBD Ongoing Preparation of Feasibility Study


existing Puerto Princesa Airport will be upgraded/ improved into an international gateway meeting standards of the International Civil Aviation Organization (ICAO).




STATUS

Talisay City Plaza Complex Heritage Restoration and Redevelopment


Talisay City Plaza Complex Heritage Restoration and Redevelopment Project Involves the restoration and redevelopment of the Talisay City Plaza Complex, including the conversion of the Talisay City Central Public Market and the Old Talisay City Hall into mixed-use facilities.

6.28 mnOngoing Preparation of Feasibility Study

Integrated Transport System*Integrated Transport System*The project will establish three (3) mass intermodal terminals at the outskirts of Metro Manila –one in the north (of EDSA) serving passengers to and from northern Luzon, and two in the south serving passengers to and from Laguna/ Batangas side and those to and from the Cavite side. The terminals will connect passengers from the province to other urban transport systems–railway, city bus, taxi, PUV-serving inner Metro Manila.

TBDFor procurement of Transaction Advisor

New Centennial Water Supply*The project will involve the construction of a dam, a water treatment plan and an associated main pipeline to deliver water from the project location to Metro Manila. This project will provide water supply security in the metropolis.

595.2 mnFor procurement of Transaction Advisor

Bulacan Bulk Water Supply Project*Bulacan Bulk Water Supply Project*The project aims to address the water supply requirements of the municipalities of the Province of Bulacan. The project involves the construction of the following: treated water transmission mains, including appurtenances, from the WTPs to the agreed delivery points of the municipalities; water treated plants and ancillary facilities; treated water reservoirs; and pumping stations. This also includes installation of flow metering devices after the WTPs pumping stations, transmission branch points, and at the agreed delivery/ interconnection points; and installation of appropriate pressure monitoring stations.


installation of appropriate pressure monitoring stations.

Rehabilitation of Quirino Highway Project*The proposed project entails the improvement/rehabilitation and operation and maintenance of Quirino Highway, a 93.45 km., 2-lane national road that traverses three (3) provinces, namely Quezon, Camarines Norte and Camarines Sur. It starts at the junction of the Pan-Philippine Highway in Tabugon, Sta. Elena, Camarines Norte and ends at the junction of the Pan-Philippine



Highway in Tabugon, Sta. Elena, Camarines Norte and ends at the junction of the Pan-Philippine Highway in Sipocot, Camarines Sur.

El Nido Solid and Liquid Waste Management Facility* TBDFor procurement of Transaction Advisor 58

Government of the Philippines

Amando M. Tetangco, Jr.BSP Governor and Chairman of the Monetary BoardBangko Sentral ng Pilipinas

Mr. Amando M. Tetangco, Jr. is the Governor of the Bangko Sentral ng Pilipinas (BSP). He has been reappointed for a second termcommencing 4 July 2011. As BSP Governor, he serves as Chairman of the Monetary Board, the BSP’s principal monetary policy-making body. He is also the Chairman of the Anti-Money Laundering Council (AMLC).making body. He is also the Chairman of the Anti-Money Laundering Council (AMLC).

A career central banker, Governor Tetangco has been in the service of the BSP for more than three decades. Prior to his firstappointment as Governor in July 2005, he was Deputy Governor in-charge of the Banking Services Sector, Economic Research andTreasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington, D.C. fromTreasury of the BSP. He also served as Alternate Executive Director of the International Monetary Fund in Washington, D.C. from1992 to 1994.

Governor Tetangco is involved in various organizations in the Philippines and overseas. Domestically, he is, among other positionsheld, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture Credit Policy Council,held, Chairman of the Philippine International Convention Center (PICC), Vice-Chairman of the Agriculture Credit Policy Council,member of the Capital Markets Development Council (CMDC) and the Export Development Council (EDC). Overseas, he representsthe country in ASEAN Central Bank Forum, Executive Meeting of East Asia and Pacific (EMEAP) Central Banks, South East AsiaCentral Banks (SEACEN), South East Asia, New Zealand and Australia (SEANZA), and Center for Latin American Monetary Studies(CEMLA). In addition, he is the Governor for the Philippines in the International Monetary Fund (IMF) and the Alternate Governor inthe World Bank (WB) and in the Asian Development Bank (ADB).the World Bank (WB) and in the Asian Development Bank (ADB).

Governor Tetangco studied economics and business administration at the Ateneo de Manila University. He finished his MA in PublicPolicy and Administration with a concentration in Development Economics at the University of Wisconsin-Madison in the UnitedStates. He has attended various training programs at different institutions including the Harvard Business School.States. He has attended various training programs at different institutions including the Harvard Business School.

59


Cesar V. PurisimaSecretaryDepartment of FinanceDepartment of Finance

Mr. Cesar V. Purisima was appointed as Finance Secretary by President Benigno Aquino III in July 2010. He also briefly served asFinance Secretary in 2005 and as Trade and Industry Secretary in 2004 for the previous administration. Recently, SecretaryPurisima won the 2011 Emerging Markets Finance Minister of the Year Award for Asia for his strong policy track record andsteadfast commitment to maintaining economic stability over the past 12 months. He was also the Chairman of the Board ofGovernors during the 45th ADB Annual Meeting held in Manila in 2012.

His government service experience include serving as Chair and Member of the Board of various government companies amongthem, the National Power Corporation, Land Bank of the Philippines and the Monetary Board (Bangko Sentral ng Pilipinas) in 2005.them, the National Power Corporation, Land Bank of the Philippines and the Monetary Board (Bangko Sentral ng Pilipinas) in 2005.In July 13, 2010 he was appointed as government representative to the Monetary Board for the second time.

Secretary Purisima has extensive work experience in public accounting both here and abroad. He was Area Managing Partner ashead of the Asia Pacific Assurance Practice of Andersen Worldwide from 2001-2002 and was Regional Managing Partner as head ofhead of the Asia Pacific Assurance Practice of Andersen Worldwide from 2001-2002 and was Regional Managing Partner as head ofthe ASEAN operation from 2000-2001. He was member of the Global Board of Andersen Worldwide from 1999-2002 and the GlobalExecutive Board of Ernst & Young from 2002-2004.

He was also Chairman and Managing Partner of SGV & Co until January 2004. Likewise, he has been a member of variousbusiness organizations including the Management Association of the Philippines, Philippine Institute of Certified Publicbusiness organizations including the Management Association of the Philippines, Philippine Institute of Certified PublicAccountants, Philippine-France Business Council, Philippine-Thailand Business Council and the Makati Business Club, amongothers.

Secretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial InstitutionsSecretary Purisima obtained his Bachelor of Science in Commerce, Major in Accounting and Management of Financial Institutionsfrom De La Salle University (1979) and his MBA from JL Kellogg Graduate School of Management, Northwestern University inChicago, Illinois (1983). In 1979, he was among the top placers in the Philippine Board Examinations for Certified PublicAccountants.

60


Proceso J. AlcalaSecretaryDepartment of AgricultureDepartment of Agriculture

A civil engineer by profession, Mr. Proceso J. Alcala was appointed as Secretary of the Department of Agriculture (DA) by PresidentBenigno S. Aquino III in June 30, 2010. Prior to his appointment, he served as a Representative of the 2nd District of QuezonProvince for two three-year terms (2004-07, 2007-10).

As a lawmaker, Mr. Alcala authored the Organic Agricultural Act of 2010 (RA 10068), Mounts Banahaw-San Cristobal ProtectedLandscape Act (RA 2718), and co-authored the Climate Change Act (RA 9729) and the Expanded Senior Citizens Act (RA 9994).Among other projects, he led and supported the establishment of the Sentrong Pamilihan ng Produktong Agrikultura sa Quezon—atrading center in Sariaya town that allowed farmers to sell their produce directly to wholesale buyers resulting in increased incomestrading center in Sariaya town that allowed farmers to sell their produce directly to wholesale buyers resulting in increased incomesfor the producer families. This trading center now serves as a model throughout the country.

At the DA, Secretary Alcala laid the Agrikulturang Pilipino or Agri-Pinoy framework as guide to the plans and goals of theDepartment for a progressive, sustainable and competitive national agriculture and fisheries sector. Through his leadership andmanagement by going around, he enjoined all stakeholders to put the farmers and fishers at the center of all programs and helpmanagement by going around, he enjoined all stakeholders to put the farmers and fishers at the center of all programs and helprestore trust in government. Over two years, he has visited all 80 provinces in all 16 regions of the country, meeting and feeling thepulse of small farmers, fisherfolk and local officials and returned to office with field-based methods to deliver improved, effective anddirect assistance of the Aquino Government.

Under his stewardship, the Philippines is no longer the number one rice importer in the world. He aims to achieve national sufficiencyin rice by end of 2013 through the Food Staples Sufficiency Program. The substantial increase in the DA’s 2012 budget by more than60 percent to over P60 billion signals the support that Secretary Alcala and the new DA have gained under the Aquino administration.The Secretary is currently gearing up the Regional Field Units (RFUs) of the DA to achieve an internal synergy that will allow theDepartment to advance agri-fishery modernization.Department to advance agri-fishery modernization.

Secretary Alcala obtained his B.S. Civil Engineering from the Luzonian University Foundation in 1978 and is a lifetime member of thePhilippine Institute of Civil Engineers. 61


Rogelio L. SingsonSecretaryDepartment of Public Works and Highways

Mr. Rogelio L. Singson, in leading the State's engineering and construction arm as its 42nd head, advocates transformation andinnovation in governance through transparency and accountability, doing the right project, for the right price and the rightinnovation in governance through transparency and accountability, doing the right project, for the right price and the rightquality, and undertaking more public-private partnership (PPP) projects.

Secretary Singson has extensive experience in both government and private sector in the field of privatization and public-privatepartnership, management of tollroads and expressways, water and power utilities privatization, airports, seaports and resorts. Hepartnership, management of tollroads and expressways, water and power utilities privatization, airports, seaports and resorts. Hewas President and Chief Executive Officer of Maynilad Water Services, Inc. after its re-privatization from July 1, 2007 to June30, 2010 under new owners, the DMCI-Metro Pacific Consortium. He also served in various executive positions such as SeniorVice President for Business Development, Citadel Holdings, Inc. from July 2002 to May 2007; Chairman & President of BasesConversion & Development Authority; and Chairman of the Board of John Hay Poro Point Development Corporation.

His other past involvements in the public sector includes serving as Executive Director of the Coordinating Council of thePhilippine Assistance Program which coordinate and monitor the official development assistance project and programs from May1991 to November 1992; and Assistant Cabinet Secretary under the Office of the President Corazon C. Aquino from July 1987 toMay 1991.

Secretary Singson obtained his Bachelor of Science Degree in Industrial Engineering from the University of the Philippines in 1971and attended a Master's Program in Public & Business Management at the De La Salle University. He also attended varioustrainings abroad on PPP, privatization and Build Operate Transfer (BOT) Schemes.

62


Gregory L. DomingoGregory L. DomingoSecretaryDepartment of Trade and Industry

Mr. Gregory L. Domingo was appointed as Trade and Industry Secretary by President Benigno Aquino III in July 2010. Hepreviously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and Investments Group (IIG) andpreviously served as Department of Trade and Industry (DTI) Undersecretary for the Industry and Investments Group (IIG) andManaging Head of the Board of Investments (BOI) from May 2001 to April 2004.

Prior to his stints with the government, Secretary Domingo was President of Carmelray-JTCI Corp. (CJC) from July 1997 toNovember 2000. He worked for Chase-Manhattan Bank in various capacities from July 1989 – July 1997 and with a number ofNovember 2000. He worked for Chase-Manhattan Bank in various capacities from July 1989 – July 1997 and with a number offinancial institutions in the United States (First Boston, Drexel Burnham Lambert and Mellon Bank) from 1982 to 1989. SecretaryDomingo also served as Vice Chairman of Belle Corporation and director for SM Investments Corp., BDO Private Bank,PASUDECO, Manila Electric Corp., Pico de Loro Beach and Country Club, Wharton-Penn Club, and Foreign Exchange Associationof the Philippines. He was also a member of the Open Market Committee of the Bankers Association of the Philippines (BAP).

Secretary Domingo obtained his Masters of Science in Operations Research at the Wharton School- University of Pennsylvania in1982, finished his MBA with distinction at the Asian Institute of Management in 1980, and graduated with a bachelor’s degree inManagement Engineering at the Ateneo de Manila University in 1976.

63


Ramon R. Jimenez, Jr.SecretaryDepartment of Tourism

What truly makes the Philippines a unique, amazing, and special place to see?

For the Department of Tourism (DOT), it has found the simplest, most direct answer to the fundamental question of every travelerthrough its latest tourism campaign, It’s more fun in the Philippines. The new expression is a powerful, compelling idea that drawsstrength from the fact that it is a fundamental truth about the Philippines—the Philippines is not just a place to see, it is a place tobe.

The man behind this now very popular tagline that became a top trending topic worldwide in just a matter of hours on the day it waslaunched is a writer, mentor, former instructor, marketing communications expert, and one of the pillars of Philippine advertising –launched is a writer, mentor, former instructor, marketing communications expert, and one of the pillars of Philippine advertising –Mr. Ramon R. Jimenez, Jr., Secretary of the Department of Tourism.

In keeping with his promise to make tourism the “people’s business,” Secretary Jimenez aims to transform the DOT into a primaryselling unit with the ultimate goal of not only improving statistics, but also ensuring that every endeavor would be fulfilling andprofitable for Filipinos. Under his leadership, the DOT has embarked on convergence projects with government agencies and theprivate sector, and actively espoused policy reforms.

With his marketing communications experience, Secretary Jimenez hopes to build enough energy around tourism to give thePhilippines a positive image. Brimming with confidence, he looks forward to meeting our target of 10 million tourist arrivals by 2016Philippines a positive image. Brimming with confidence, he looks forward to meeting our target of 10 million tourist arrivals by 2016and seeing tourism finally take its place as a key driver of socio-economic progress in the country, to make it “more fun” for all.

64


Florencio B. AbadSecretarySecretaryDepartment of Budget and Management

Mr. Florencio B. Abad was appointed by President Benigno Aquino III as Secretary of Budget and Management in July 2010. Healso served as Secretary of Agrarian Reform during the late President Corazon Aquino’s administration and served as Secretary ofalso served as Secretary of Agrarian Reform during the late President Corazon Aquino’s administration and served as Secretary ofEducation under the Arroyo administration.

He was elected member of the House of Representatives in 1987 representing the Lone District of Batanes. He was subsequentlyre-elected in 1995, 1998 and 2001. He became president of the Liberal Party of the Philippines from 1999 to 2004 and is currentlythe Vice President for Policy and Platforms.the Vice President for Policy and Platforms.

Secretary Abad finished his Bachelor of Science in Business Management, and Bachelor of Laws at the Ateneo de ManilaUniversity and passed the Bar Examination in 1985. A fellow of the Edward Mason Program in Public Policy and Management atthe Kennedy School of Government in Harvard University in Cambridge, Massachusetts, he also holds a Masters in Publicthe Kennedy School of Government in Harvard University in Cambridge, Massachusetts, he also holds a Masters in PublicAdministration degree.

Previously, Secretary Abad was a union organizer/trainer, research director of the Ateneo Center for Social Policy and PublicAffairs, and a legal and management consultant to different local and foreign foundations.

65


Jose Rene D. AlmendrasSecretaryDepartment of EnergyDepartment of Energy

Mr. Jose Rene D. Almendras is the Secretary of the Department of Energy (DOE). Under his leadership, the DOE was ranked bythe Management Association of the Philippines as one of the Top 10 Performers, out of 50 government agencies, in a survey ongovernment performance specifically on ensuring integrity in public service.

He also became co-chair of the high level discussion on Long Term Strategy for the International Renewable Energy Agency(IRENA) held in Abu Dhabi in 2011. It was also on the same year that the Philippines became a rotating member of the ExecutiveBoard of the International Energy Forum (IEF) at the 4th Asian Energy Ministerial Roundtable on “Sustainable Growth and EnergyIndependence” held in Kuwait.Independence” held in Kuwait.

Secretary Almendras assumed significant leadership roles in the top corporations in the country. He was previously President ofManila Water Company where he was instrumental in the expansion and growth of the company including the recognition it earnedhere and abroad; to name a few - Best Managed Companies in Asia, the Best in Corporate Governance, one of the GreenestCompanies in the Philippines and most recently, hailed as the world’s Most Efficient Water Company.Companies in the Philippines and most recently, hailed as the world’s Most Efficient Water Company.

He started his corporate career at Citytrust Trust Banking Corporation and later moved to Citibank as Account Management GroupHead in the Visayas in 1985. He became the Treasurer of Aboitiz Group for both the Aboitiz Company and Aboitiz Equity Ventures.He has also served as President of City Savings Bank, and was appointed CEO of Cebu Holdings Inc. and Cebu PropertyHe has also served as President of City Savings Bank, and was appointed CEO of Cebu Holdings Inc. and Cebu PropertyVentures and Development Corporation and later assumed the role of Business Group Head for VISMIN (Ayala Land) andconcurrently Operations Transformation Group Head of Ayala Land.

Mr. Almendras is an acknowledged international resource person on Sustainable Development and leadership as evidenced by thelong list of international speaking engagements in Asia, Europe, and the US. He is a staunch sustainability advocate and a leaderlong list of international speaking engagements in Asia, Europe, and the US. He is a staunch sustainability advocate and a leaderin doing business at the base of the pyramid, as well as ensuring the triple bottom line of financial profits, social impact, andenvironmental protection.

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Arsenio M. BalisacanSecretaryNational Economic and Development AuthorityNational Economic and Development Authority

Dr. Arsenio M. Balisacan is Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority(NEDA). Prior to his appointment in NEDA, he was Dean and Professor of the University of the Philippines (UP) School of Economics andExecutive Director of the Philippine Center for Economic Development. He has taught Development Economics, Agricultural and ResourceEconomics, and Economics of Poverty and Inequality.Economics, and Economics of Poverty and Inequality.

An Academician of the National Academy of Science and Technology and Adjunct Professor of the Australian National University, SecretaryBalisacan is now on secondment from UP. He also served as Director-Chief Executive of the Southeast Asian Regional Centre for GraduateStudy and Research in Agriculture (SEARCA), an intergovernmental organization, for six years (2003-2009) wherein he led SEARCA gainstature in the academic world and become a regional center of excellence for agriculture and rural development in Southeast Asia.stature in the academic world and become a regional center of excellence for agriculture and rural development in Southeast Asia.

In 2000-2001 and 2003, he was Undersecretary for Policy, Planning and Research of the Department of Agriculture (DA). As Undersecretary ofDA, he was the country’s chief negotiator in the Agriculture Negotiations of the World Trade Organization (WTO) and in various bilateralagriculture negotiations. Before joining the UP faculty in 1987, he was a Research Fellow at the East West Center in Honolulu and Economist atthe World Bank in Washington, D.C.

A recognized expert in Asia on poverty, food security, agricultural and rural development, human development, impact assessment, andgovernance issues, he served as adviser to public chief executives and legislators, non-government organizations, and multilateral developmentinstitutions such as the World bank (WB), Asian Development Bank (ADB), various United Nations (UN) agencies and the Australian Centre forinstitutions such as the World bank (WB), Asian Development Bank (ADB), various United Nations (UN) agencies and the Australian Centre forInternational Agricultural Research (ACIAR).

He has led leadership positions in professional associations. He served as President of the Philippine Economic Society in 2006, President ofthe Human Development Network in 2003-2009, Founding Secretary-General of the Asia-Pacific Agricultural Policy Forum in 2003-2006, andExecutive Secretary of the Southeast Asian University Consortium for Graduate Education in Agriculture and Natural Resources in 2003-2009.Executive Secretary of the Southeast Asian University Consortium for Graduate Education in Agriculture and Natural Resources in 2003-2009.Currently, he is President of the Asian Society of Agricultural Economics.

Dr. Balisacan holds a PhD in Economics from the University of Hawaii, an MS degree in Agricultural Economics from the University of thePhilippines Los Baños and a BS degree in Agriculture (magna cum laude) from Mariano Marcos State University. 67


Joseph Emilio AbayaIncoming SecretaryIncoming SecretaryDepartment of Transportation and Communications

Mr. Joseph Emilio "Jun" Aguinaldo Abaya was appointed by President Benigno Aquino III on August 31, 2012 as the new DOTCSecretary. A member of the Liberal Party, he has been elected to two terms as a Member of the House of Representatives of theSecretary. A member of the Liberal Party, he has been elected to two terms as a Member of the House of Representatives of thePhilippines, representing the 1st District of Cavite. He first won election to Congress in 2004, and was re-elected in 2007.

Prior to representing the 1st district, Cavite to the House of Representatives in 2004, he first served in the Armed Forces of thePhilippines as a Cadet (1984-1988) and as a Naval officer of the Philippine Navy (1988-2004). He ran for congressman in 2004 andrepresented the 1st District of Cavite to the 13th Congress of the Philippines. He was re-elected in the 2007 elections. During therepresented the 1st District of Cavite to the 13th Congress of the Philippines. He was re-elected in the 2007 elections. During the14th Congress, He was Chairman of the House Committee on Science and Technology. He was also Co-Chairman, with SenatorEduardo Angara, of the Joint Congressional Committee on Science and Technology and Engineering. During the 15th Congress(2010) and on his last term, he served as the Chairman of House Committee on Appropriations.

Secretary Abaya finished his elementary education from De La Salle University in 1979. During his secondary school years, he wasa consistent honor student at the Philippine Science High School. He became a University and College scholar of the University ofthe Philippines where he took his engineering studies. While in UP, he took and topped the entrance examination for the PhilippineMilitary Academy that he was sent by the government to the US Naval Academy (USNA) in Annapolis, Maryland, USA where heearned his Bachelor of Science degree in Mathematics (1988) with distinction of being a consistent Dean's Lister in all theearned his Bachelor of Science degree in Mathematics (1988) with distinction of being a consistent Dean's Lister in all thesemesters he was there. He then proceeded to Cornell University in Ithaca, New York, USA and completed Master's degree inElectrical Engineering (1989 - he was also a fellowship awardee.

He thought it fit to prepare himself further as a lawmaker that he studied law. He received his Juris Doctor degree from the AteneoHe thought it fit to prepare himself further as a lawmaker that he studied law. He received his Juris Doctor degree from the Ateneode Manila University, School of Law in April 2005. He was admitted to the Philippine Bar in 2007.


Rene K. LimcaocoRene K. LimcaocoUndersecretaryDepartment of Transportation and Communications

Mr. Rene K. Limcaoco was appointed Undersecretary of Planning and Infrastructure Projects of the Department of Transportationand Communications (DOTC) in 2011. He is also professor at the Ateneo de Manila Law School where he teaches EconomicAnalysis of Law and The Economics of Antitrust Law.

Prior to his stint in government, he was President of Lica AutoNation Inc. Automotive Group from 1997-2011. He also previouslyworked as Senior Legal Manager at the Price Waterhouse, Office of Government Services from 1995-1997. Undersecretaryworked as Senior Legal Manager at the Price Waterhouse, Office of Government Services from 1995-1997. UndersecretaryLimcaoco also served as Senior Associate of Hadiputranto Hadinoto Dermawan Law Office in Jakarta, Indonesia and specialized infinancial products and Quisumbing Torres & Evangelista Law Office (Baker & McKenzie Manila) specializing in banking and financelaw. He has also worked as Economic Analyst at SKR Managers and Advisors, Inc. Manila.

Undersecretary Limcaoco obtained his Bachelor of Laws with distinction in 1990 at the Ateneo de Manila Law School where he wasEditor-in-Chief of the Ateneo Law Journal and Bulletin. He finished his bachelor’s degree in Economics with concentration onDevelopmental Economics at Stanford University in 1986.

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Claro P. FernandezExecutive DirectorExecutive DirectorInvestor Relations Office

Mr. Claro P. Fernandez became Executive Director of the Investor Relations Office in February 2009, bringing a wealth of Mr. Claro P. Fernandez became Executive Director of the Investor Relations Office in February 2009, bringing a wealth of experience as a communications professional with years of work in broadcast and print media reporting on business/financial news and recent jobs in the Office of the President, a major Philippine universal bank and a California-based startup BPO.

Mr. Fernandez started out as a business reporter and had stints with the Manila Chronicle, Business Day, Financial Post and Daily Express from 1985 to 1991. He shifted to broadcast media in 1991 to 1996 where he moved on to become News Daily Express from 1985 to 1991. He shifted to broadcast media in 1991 to 1996 where he moved on to become News Director and Associate Producer at GMA 7’s news and public affairs programs. Later on, Mr. Fernandez joined the banking industry as Vice-President of the Corporate Affairs and Investor Relations Office (CAIRO) of Philippine National Bank (PNB) in 1997. He transferred to and worked in the Information Technology Group (ITG) of PNB from 1999 to 2001.

In 2002, he began his career in government service as Press Undersecretary and later on served as the Deputy In 2002, he began his career in government service as Press Undersecretary and later on served as the Deputy Communications Director with the rank of Undersecretary at the Office of the President from 2004 to 2005. As Press Undersecretary, he oversaw the functional operations of the offices and agencies that handle the administration’s public information and news and information dissemination.

Mr. Fernandez received his entire education from the University of the Philippines from grade school to college. He graduatedwith a BA Communications degree in 1985.

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Private Sector

Benedict C. HernandezPresident and CEOPresident and CEOBusiness Processing Association of the Philippines

Benedict C. Hernandez became President and Chief Executive Officer (CEO) of the Business Processing Association of the Philippines (BPAP) onJanuary 2, 2012. He leads the association in pursuing its Road Map 2016 vision to create 1.3 million direct jobs and more than double the revenues ofJanuary 2, 2012. He leads the association in pursuing its Road Map 2016 vision to create 1.3 million direct jobs and more than double the revenues ofthe information technology (IT) and business process (BPO) industry to $25 billion by 2016. To achieve this, BPAP drives key initiatives in talent poolexpansion, country promotion, and maintaining a favorable business environment.

Concurrently, Benedict will continue to be Accenture BPO Services Delivery Operations Lead in the Philippines and president of the Contact CenterAssociation of the Philippines (CCAP). He is also a founding director of CCAP which celebrated its 10th anniversary in 2011. As CCAP president, heAssociation of the Philippines (CCAP). He is also a founding director of CCAP which celebrated its 10th anniversary in 2011. As CCAP president, hewas a member of the BPAP board of trustees from 2007 to 2009 and in 2011.

Benedict is a recognized pioneering leader of the Philippine IT-BPO industry. In 2000, Benedict was appointed general manager of industry pioneereTelecare. During his almost 10 years as eTelecare’s country head, the pioneer contact center grew to over 10,000 employees, successfully listed inNASDAQ, expanded its operations to US and LATAM, and gained a record number of international awards, including five times as Best Outsourcer atNASDAQ, expanded its operations to US and LATAM, and gained a record number of international awards, including five times as Best Outsourcer atICCM, the world’s largest contact center expo. eTelecare also has the distinction of being the only IT/BPO company in the Philippines to have beenchosen Best Employer by the People Management Association of the Philippines (PMAP) in 2007.

Benedict was honored as one of the Ten Outstanding Young Men (TOYM) in the Philippines in 2006 given his business leadership role in promotingthe development of the contact center industry. As Accenture’s BPO Lead, Benedict oversees a diversity of BPO offerings including finance &the development of the contact center industry. As Accenture’s BPO Lead, Benedict oversees a diversity of BPO offerings including finance &accounting, health administration, network services, and other industry-specific BPO. With over 25,000 employees delivering technology and businessprocess outsourcing services, multi-awarded Accenture is the largest IT and BPO company in the Philippines.

Prior to outsourcing, Benedict was in the telecommunications industry during its hyper-growth years in the ’90s. He was a pioneer employee at SmartCommunications where he was head of customer care training, quality and research, and, later, at Nextel Communications where he served as VP forCommunications where he was head of customer care training, quality and research, and, later, at Nextel Communications where he served as VP forcustomer operations.

He is a psychology graduate and later served as faculty member of the University of the Philippines from 1990 to 1993. Benedict’s primary advocacy isto help develop and promote the Filipino talent as best-in-class in the global knowledge economy. 71

Private Sector

Aurelio R. Montinola, IIIAurelio R. Montinola, IIIPresident and CEOBank of the Philippine Islands

Aurelio R. Montinola, III, 61, Filipino, is the President and CEO of Bank of the Philippine Islands.

His other affiliations among others, include: Vice Chairman, Mastercard Asia/Pacific Regional Advisory Board; Director, Ayala LandInc; Vice Chairman and President, BPI Foundation; Vice Chairman, Far Eastern University; Vice Chairman, Republic CementCorporation; and Director, Makati Business Club.

He graduated with BS Management Engineering at Ateneo de Manila University in 1973 where he also studied high school andgrade school. He received his MBA at Harvard Business School in 1977.

He was awarded the 2005 and 2009 Asian Banker Leadership Award for the Philippines and the 2006 CEO Excel Award forHe was awarded the 2005 and 2009 Asian Banker Leadership Award for the Philippines and the 2006 CEO Excel Award forCommunication Excellence in Banking and Finance.

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Private Sector

Jesse AngResident Representative, PhilippinesInternational Finance CorporationInternational Finance Corporation

Mr. Jesse Ang is Resident Representative for the Philippine office of the International Finance Corporation. He has strong financialsector expertise and a solid track record in putting together investment deals in infrastructure, including power, water andtelecommunications. He is the first Filipino to become the head of the IFC Philippine office.telecommunications. He is the first Filipino to become the head of the IFC Philippine office.

He joined IFC in February 2000 as the Principal Investment Officer primarily responsible for business development. Prior to joiningIFC, he was the Chief Financial Officer and Treasurer of the Philippine International Air Terminals Company based in Manila. Heworked in New York City for several years in various capacities, such as Director of the Global Structured Finance department inworked in New York City for several years in various capacities, such as Director of the Global Structured Finance department inANZ Investment Bank, Vice President of the Trade and Commodity Finance department in Generale Bank and Assistant VicePresident in Irving Trust Company. His work experience involved significant travel to Latin American countries such asMexico, Chile, Colombia, Venezuela, Brazil and Argentina and East Asian countries including Korea, Taiwan, Hong Kong and thePhilippines.

He earned his masters degree in Business Administration from the Wharton Graduate School of Business and a BS IndustrialEngineering degree from the University of the Philippines.

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Private Sector

Guillermo M. LuzPrivate Sector Co-ChairmanPrivate Sector Co-ChairmanNational Competitiveness Council

Guillermo M. Luz is the Private Sector Co-Chairman of the National Competitiveness Council, a public-private sector body dedicatedto developing a strategy for the long-term competitiveness of the Philippines through policy reforms, projectto developing a strategy for the long-term competitiveness of the Philippines through policy reforms, projectimplementation, institution-building, and performance monitoring.

He was Executive Vice President and Chief Operating Officer of Ayala Foundation from December 2006 to May 2011, a foundationwhich manages projects in education, environment, entrepreneurship, arts and culture, and community development. Heconcurrently served as Director of Ayala Museum from January 2010 to May 2011concurrently served as Director of Ayala Museum from January 2010 to May 2011

He was Executive Director of the Makati Business Club from 1987 to 2006, after joining its staff in 1983. While at MBC, heconcurrently served as executive director of Philippines-United States Business Council, Philippine-British BusinessCouncil, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-Malaysia Business Council.Council, Philippines-France Business Council, Philippines-Singapore Business Council, and Philippines-Malaysia Business Council.

Mr. Luz was the Secretary-General of NAMFREL from 1992 to 2006, overseeing preparations for its Operation Quick Count andpollwatching in the 1992, 1995, 1998, 2001, and 2004 elections.

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Directory

Bangko Sentral ng PilipinasGovernor Amando M. Tetangco, Jr.A. Mabini St. cor. P. Ocampo St., Malate Manila

Department of Energy Secretary Jose Rene D. AlmendrasEnergy Center, Merritt Road, Fort Bonifacio, Taguig City

Telephone Number: (632) 708-7206 Fax Number: (632) 708-7209

Department of FinanceSecretary Cesar V. Purisima6th Floor, Department of Finance Building, Roxas Boulevard, Manila

Energy Center, Merritt Road, Fort Bonifacio, Taguig CityTelephone Number: (632) 840-2008 Fax Number: (632) 812-6194

Department of Agriculture Secretary Proceso J. Alcala 4/F, DA Annex Bldg. Diliman, Quezon City 6th Floor, Department of Finance Building, Roxas Boulevard, Manila

Telephone Number: (632) 523-9215 / 523-9219 Fax Number: (632) 526-8474

National Economic and Development AuthorityDirector-General Arsenio M. Balisacan 12 Jose Maria Blessed Escriva Drive, Ortigas Center, Pasig City

4/F, DA Annex Bldg. Diliman, Quezon City Telephone Number: (632) 920-3986 / 920-2223 Fax Number: (632) 926-6426

Department of Tourism 12 Jose Maria Blessed Escriva Drive, Ortigas Center, Pasig CityTelephone Number: (632) 631-3716 / 3747 Fax Number: (632) 631-3747

Department of Budget and ManagementSecretary Florencio B. Abad

Department of Tourism Secretary Ramon R. Jimenez, Jr. Department of Tourism Building, T.M. Kalaw Street, Manila Telephone Number: (632) 523-8411 Fax Number: (632) 521-7374

Department of Transportation and Communications Secretary Florencio B. Abad General Solano Street, San Miguel, Manila Telephone Number: (632) 735-4926 / 735-4929 Fax Number: (632) 735-1955

Department of Trade and Industry Secretary Gregory L. Domingo

Department of Transportation and Communications Secretary Joseph Emilio Abaya The Columbia Tower, Barangay Wack-Wack Ortigas Ave.,Mandaluyong City Telephone Number: (632) 727-7109 Fax Number: (632) 726-7104

Secretary Gregory L. Domingo Industry and Investments Bldg., Senator Gil Puyat Ave., Makati CityTelephone Number: (632) 890-9333 / 896-1166 Fax Number: (632) 899-5518

Department of Public Works and Highways


Public-Private Partnership CenterExecutive Director Cosette V. Canilao NEDA sa QC, EDSA, Diliman, 1103 Quezon City Telephone Number: (632) 929-4968 Fax Number: (632) 929-8593

Department of Public Works and HighwaysSecretary Rogelio L. SingsonBonifacio Drive, Port Area, ManilaTelephone Number: (632) 304-3300 Fax Number: (632) 304-3020

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Investor Relations OfficePromoting Excellence in Investor Relations. Enhancing Sovereign Value

Eleven Years of Commitment to the Investor Communit y

The effective implementation of the Government’s economic program and its

Serving Our Stakeholders in the Philippines and Int ernationally

The IRO provides services to a wide range of stakeholders – theThe effective implementation of the Government’s economic program and itssuccess depends on regular two-way dialogue between economic policymakers and the investment community.

The Investor Relations Office (IRO) was established in July 2001 tostrengthen the country’s relations with investors and other stakeholders by

The IRO provides services to a wide range of stakeholders – theGovernment’s economic agencies, financial institutions, credit ratingagencies, bilateral and multilateral organizations, domestic andforeign investors, the diplomatic corps, business people, the mediaand the general public. All services to its stakeholders areunderpinned by a set of fundamental principles: transparency,strengthen the country’s relations with investors and other stakeholders by

promoting active channels of information flow and dialogue betweeneconomic policy makers and investors.

Based in the Philippine central bank, the Bangko Sentral ng Pilipinas (BSP),the IRO has a dedicated staff comprised of trained economists and

underpinned by a set of fundamental principles: transparency,accessibility, timeliness, consistency and feedback.

The IRO adopts a multi-pronged approach to serving its stakeholdersthrough:� Dissemination of key economic and financial information aboutthe IRO has a dedicated staff comprised of trained economists and

communication specialists who work with colleagues in the BSP and theeconomic agencies to implement a wide-ranging program of investor relationsactivities.

As the Government has implemented its economic reform program over the

� Dissemination of key economic and financial information abouteconomic policy objectives and performance

� Seeking market feedback on current and proposed policymeasures

� Providing feedback to economic policy-makers about investorsentimentAs the Government has implemented its economic reform program over the

last ten years, the IRO’s program of investor outreach has helped to ensurethat investor decisions benefit from a comprehensive understanding of theprogress in reforms and what they mean for the economic fundamentals ofthe Philippines.

sentiment� Facilitating candid and constructive dialogue between policy-

makers and investors

In turn, the Government’s economic reform program has made the economyrelatively more resilient amid the global financial and economic crisis. Withstable macroeconomic fundamentals, the Philippines remains as one of themost viable economies for investments in the emerging market.

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The IRO is proud to have played a role in communicating the successes ofthe Government’s reform program in the last eleven years and is committedto continuing its efforts to promote the Philippine economy.

Investor Relations OfficePromoting Excellence in Investor Relations. Enhancing Sovereign Value

The IRO undertakes a range of initiatives to build awareness among domestic and international investment audiences around the Government’seconomic reform program, promote specific investment opportunities in the Philippines and facilitate information exchange and dialogue between keyeconomic reform program, promote specific investment opportunities in the Philippines and facilitate information exchange and dialogue between keyeconomic policy decision-makers in the Government and domestic/international investors. These initiatives include:� Regular Economic Briefings to update the business community, media and industry organizations on the country’s economic performance� Investor Roadshows to bring the Government’s resilient economic performance record, commitment to sound economic management and

responsible reform to members of the international financial community� Media Briefings to raise awareness of the Government’s progress in economic reforms and plans for ongoing reforms� Media Briefings to raise awareness of the Government’s progress in economic reforms and plans for ongoing reforms� Government Policy Roadshows to increase the business community’s understanding of government policy measures to generate support for the

policy implementation process� Publications to inform policy-makers about market developments and sentiment� E-mail service to keep investors and other investors abreast of data releases on a regular basis� An English Language website, www.iro.ph, to provide a wide range of easily accessible information about the Philippines’ economic� An English Language website, www.iro.ph, to provide a wide range of easily accessible information about the Philippines’ economic

performance and the government’s economic policies. The website serves as a warehouse of valuable information such as economic briefingpresentations, press releases and economic and statistical data.

Contact InformationFor further information about the Investor Relations Office, or about the Philippine economy, please contact:contact:Claro P. FernandezInvestor Relations Office Bangko Sentral ng PilipinasA. Mabini St. cor. P. Ocampo St.Malate Manila, Philippines 1004Malate Manila, Philippines 1004Tel: (632) 708-7487 / (632) 336-7124Email: [email protected]: (632) 708-7489Website: www.iro.ph 77

The Republic of the Philippines The Republic of the Philippines

Good Governance is Good Economics Good Governance is Good Economics

September 2012

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Good Governance is Good Economics