Low Income Housing for Balik Probinsiya Beneficiaries piloted in Lanao del Norte

KAUSWAGAN, LANAO DEL NORTE —– The National Housing Authority and the local government unit of Kauswagan, Lanao del Norte launched Tuesday (November 24) the Balik Probinsiya Bagong Pag-asa (BP2) Program for ‘low income families’ who opt to move back to their province from the National Capital Region (NCR) and or other highly urbanized cities.

The model house of the Bagong Pag-asa Organic Village of the Balik Probinsiya Bagong Pag-asa (BP2) Program in Barangay Tacub, Kauswagan, Lanao del Norte. (Divina M. Suson)

The NHA has given financial assistance of P25 million for the construction of 87 units of quadruplex houses inside the 6.3-hectare land in Barangay Tacub donated by the GN Power Kauswagan, a coal-fired power plant company based in the same barangay.

Housing Secretary Eduardo Del Rosario said some 100 units are targeted to be constructed. The LGU will spend for the 13 other units.

Each housing unit will have an average floor area of 30 square meter and an average lot area of 80 square meters. These houses will be finished in 200 calendar days from the start of work.

The BP2 Program in Lanao del Norte is called Bagong Pag-asa Organic Village because it also includes an organic garden. Kauswagan LGU has been advocating organic farming.

The BP2 is a long-term program of the government to decongest Metro Manila of migrants especially informal settlers who were drawn there in their search for economic opportunities.

NHA General Manager Marcelino Escalda, who is the executive director of BP2 Program, said beneficiaries of the project are those who voluntarily decided to return to the province after losing their job or other income because of the pandemic and other circumstances.

The beneficiaries also are those who are currently living in an unsafe dwelling in other regions and those who have direct exposure to health and safety risks and other environmental hazards.

According to Escalada, Lanao del Norte is one of the many provinces in the country “that signified bravely” the intention of accepting the BP2 Program.

“We chose Lanao del Norte as the pilot area of this project because of its readinesss to accept their returning residents during the pandemic. We chose Kauswagan (town) because of its agricultural productivity. Food is everywhere, according to Mayor (Rommel) Arnado, for as long as one will work hard,” Escalada said.

Arnado said they have already received more than 100,000 applicants from all over the country and more than 9,000 applicants are returning residents of Kauswagan.

“We have not chosen the final beneficiaries yet. We are screening them. The beneficiaries are not only limited to residents of Kauswagan but residents of the province of Lanao del Norte,” Arnado said.

Mindanao Development Authority (MinDA) Secretary Emmanuel Piñol said the village is a microcosm of what they would like the Philippines to be, a well-organized people with one common objective and a target of reducing poverty and improving productivity.

“We will build here a community of about 200 families originally coming from urban centers living as informal settlers. They will come here, they will be provided with housing units, with one common livelihood activity,” he said.

Heavy equipment are prepositioned at the site to fast track the development of the Bagong Pag-asa Organic Village of the Balik Probinsiya Bagong Pag-asa (BP2) Program in Kauswagan, Lanao del Norte. (Divina M. Suson)

According to him, the project management office of the Bahay Pag-asa Organic Village has already forged a marketing agreement with a private company to buy the organic chicken and vegetables that will be produced by the village.  

Department of Labor and Employment (DOLE) undersecretary Benjo Santos said the agency is also providing beneficiaries income opportunities by giving them employment and or provide them businesses.

“We are not only building a community but we are also building lives here. The DOLE is giving a P20,000 grant to each individual as their start-up. If they apply as a group, the DOLE can give as much as P1 million,” Santos said in a press briefing after the launching ceremony. 

–end– 

Consumers can petition ERC to Review Power Supply Contracts of distribution utilities

Group urges consumers to act vs increasing power rates

Power consumers from Northern Mindanao can do something about the rising cost of electricity in the region.

A consumer group has advised organized consumer and  business groups to officially petition the Energy Regulatory Commission (ERC) to review the power supply contracts of electric cooperatives and private distribution utilities with coal fired power plants.

A recent update on the power situation in Mindanao has revealed that Cagayan de Oro and Northern Mindanao now has the highest power rates in the whole island.

According to a presentation made recently by the Mindanao Power Monitoring Committee (MPMC) to the Association of Mindanao Rural Electric Cooperative (AMRECO) and the National Electrification Administration (NEA) on 17 September 2020, Region X has the most expensive average power rates among private distribution utilities (DUs), and the most expensive average rate among electric cooperatives among the island’s six regions.

Region X has the most expensive average rate for its electric coops at P10.9915 per kilowatt hour as of March 2020.

Historical Average System Rates of Electric Cooperative in Northern Mindanao (Peso per kilowatt hour)

In comparison, the BARMM has the lowest rate at P7.61 (-31%), Region XI P8.9743 (-18.4%), Region XII P9.04 (-17.8%), and Caraga P9.53(-13.3%).

In addition, the P10.9915 average rate of all power coops was also 16%  more expensive that the P9.2180 average rate for all coops in all regions in Mindanao, and 18.8% more expensive than the P8.9287 average rate for all DUs in Mindanao.

Why power rates are up

“The causes of the excessive prices paid by many electric cooperatives in Mindanao for their power supply from coal power plants (which causes can be verified by a study of the various power supply contracts between the electric cooperatives and the coal generating companies) include not using public bidding to secure least-cost electricity, disadvantageous terms like take-or-pay, over-contracting beyond their power requirements and mismanagement of their contracts,” said Engr. David A. Tauli, president and spokesperson of the Mindanao Coalition of Power Consumers (MCPC) in a webinar of the Philippine Movement for Climate Justice (PMCJ) held on September 4, 2020.

MCPC Chairman Engr. David A. Tauli stressing a point during the March 6, 2014 consultation meeting with the House Energy Committee held at MUST (now USTP).

Tauli said  many electric cooperatives in Mindanao, including most of the electric cooperatives in Northern Mindanao, did not carry out public bidding in contracting for power supply from coal power plants. Consequently, these electric cooperatives contracted for coal power supply at a price of P5.40 per kilowatt-hour at a time when prices of P4.20 pesos per kWh or lower were being offered by other coal generating companies.

“The power supply contracts of the electric cooperatives with coal power plants have a Take-or-Pay provision that, combined with over-contracting for baseload power supply, results in the electric cooperative paying for electricity that is not delivered by the coal plant to the electric cooperative,” Tauli noted. “This payment of unused electricity is passed on to power consumers who are forced to pay for electricity that they do not consume, thereby increasing the rates for electric power supply.”

Not the least, Tauli said while most of electric cooperatives contracted for baseload power supply from coal power plants, they do not have enough separate contracts for intermediate-load and peak-load power supply.

Consequently, the power supply from coal plants are being used by these electric cooperatives to supply their intermediate load and peak load requirements. Using baseload power plants for intermediate loads or peak loads result in prices that are two to three times higher than the base-load price.

“For example, if a baseload power supply that is priced at 5.00 pesos per kWh is used for intermediate load or peak load, the price for power supply would range from P10.00 to P15.00 per kWh or even higher.”

The shift to coal power

On the macro level, Tauli described how the increase in the price of electricity in Mindanao comes mainly (90+ percent) from the increase in the proportion of coal generation in the energy mix supplied to power consumers in Mindanao.

Generation Component of Rates (pesos per KwH) for all electric cooperatives in the Philippines

Data from the EPIRA reports of the DOE show how the average generation component of power coops in the Mindanao Grid from 2014 to 2018 increased at almost four times that of the Luzon Grid (37.6% vs. 10.8%) and three times to those in the Visayas Grid (37.6% vs. 12.5%).

“It can be seen in the tabulation that the greatest increase in the generation component of rates occurred in Mindanao for both the absolute amount of the increase and the percentage increase,” Tauli noted.

He further explained how the increase in generation rates in Mindanao was caused by the increased proportion of energy supplied by coal plants, compared with energy from hydro plants.

“Before 2015, the generation mix in Mindanao was around 70 percent from hydro and geothermal power plants and 30 percent from fossil-fueled power plants (coal and oil). At present, the generation mix has been reversed, with 30% coming from renewable energy and 70 percent from coal and oil,” Tauli said.

Effect of change in generation mix on rate mix

As a consequence, while the average of the generation component of rates for all electric cooperatives in Mindanao is around P5.10 per kWh, the actual rates for individual electric cooperatives ranges from around P4.50 per kilowatt-hour to over P8.50 pesos per kWh.

“The variations in the prices paid by electric cooperatives for their power supply from coal power plants are caused by the differences in their individual manner of contracting for power supply and by the differences in the terms of their respective power supply contracts with the coal generation companies,” Tauli explained.

What Consumers Can Do

However, Tauli said local government units, consumer and business groups have recourse with the Energy Regulatory Commission (ERC) in case they decide to bring down electricity rates in their respective areas.

First, they can petition the ERC to review the power supply contracts of Mindanao electric cooperatives with coal generating companies priced at P5.00 per kWh or higher to determine whether these electric cooperatives have carried out public bidding or other forms of least-cost acquisition as required by the EPIRA.

“Contracts found to have violated the EPIRA requirements for least-cost acquisition of power supply should be declared by the ERC as null and void ab initio,” Tauli said.

Second, petitioners can similarly ask the ERC to review the power supply contracts of electric cooperatives believed to have over-contracted for their baseload power supplies.

“Electric cooperatives with excessive contracts for baseload power supply should be directed to renegotiate their power supply contracts so power consumers will not be forced to pay for electricity that they do not consume,” he added.

Not the least, Tauli advised petitioners to conduct public campaigns urging their distribution utility companies to carry out Competitive Selection Processes for lower-priced, long-term power supply for intermediate loads from renewable energy power plants. The generation from renewable energy resources would displace the high-priced generation from coal power supply that is now being used by distribution utilities to supply intermediate load requirements of consumers.  

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Cagayan de Oro, Region X has highest power rates in Mindanao

Average Power Rate in CDO up 71.6% since 2016

It is ironic that despite demand for electricity heading south, power rates in Region X are heading north.

A recent update on the power situation in Mindanao has revealed that Cagayan de Oro and Northern Mindanao now has the highest power rates in the whole island.

According to a presentation made recently by the Mindanao Power Monitoring Committee (MPMC) to the Association of Mindanao Rural Electric Cooperative (AMRECO) and the National Electrification Administration (NEA) on 17 September 2020, Region X has the most expensive average power rates among private distribution utilities (DUs), and the most expensive average rate among electric cooperatives among the island’s six regions.

MinDA Sec. Emmanuel Piñol (far right) speaks during an online meeting with Mindanao electric cooperative heads in Kidapawan City on Sept. 17, 2020. (Photo courtesy of Cotelco-Matalam)

The MPMC data revealed that the Cagayan Electric Power Co. Inc. (Cepalco) has the most expensive power rate among Mindanao’s private DUs at P10.8528 per kilowatt hour as of March 2020.

In contrast, the Cotabato Power and Light Co. has the lowest at P7.1717 (-33.9%) and Iligan Power and Light Co. which has the next highest rate at P9.3375 is still 14% cheaper compared to Cepalco.

Historical Average System Rates of Private Distribution Utilities in Mindanao (Peso per kilowatt hour)

Cepalco power rates from 2016 to March 2020 also registered the highest increase at P4.5289 per kilowatt hour or 71.6% over the period.

Meantime, none of the three other private DUs in Mindanao registered a double digit rate increase for the period: ILPI has the next highest rate increase for the same period at 7.4% followed by CLPC with 1.5%, and DLPC, which has an even bigger franchise area than Cepalco, even managing to reduce its average rate by -3.3% from P7.4420 in 2016 to only P7.1961 by March 2020.

Largely because of Cepalco’s tremendous power rate increase, the average power rate among Mindanao’s four private DUs increased by P1.2577 or 17% to P8.6395 despite the single digit increments of CLPC and ILPI and DLPCs -3.3% rate reduction.

Minergy Coal Power Plant in Balingasag, Misamis Oriental (Elex photo)

An industry insider who prefers to remain anonymous said the tremendous increase in electricity rates in Cagayan de Oro is a result of Cepalco sourcing up to 85 percent of its electricity from the Minergy Power Corp coal plant in Balingasag, Misamis Oriental and other affiliate generating companies.

Thus, the rise in power rates within the Cepalco franchise area could be attributed primarily to the rise in generation rates as a result of the shift to the MPC coal plant and not to the transmission and distribution aspects of the franchise operations. It is also true of other distribution utility companies in Mindanao that the increase in rates is in the generation component.

Region X power coop rates most expensive

Similarly, it was revealed that Region X also has the most expensive average rate for its electric coops at P10.9915 per kilowatt hour as of March 2020.

Historical Average System Rates of Electric Cooperative in Northern Mindanao (Peso per kilowatt hour)

In comparison, the BARMM has the lowest rate at P7.61 (-31%), Region XI P8.9743 (-18.4%), Region XII P9.04 (-17.8%), and Caraga P9.53(-13.3%).

In addition, the P10.9915 average rate of all power coops was also 16%  more expensive that the P9.2180 average rate for all coops in all regions in Mindanao, and 18.8% more expensive than the P8.9287 average rate for all DUs in Mindanao.

Mindanao Power Situation

When queried about the rising power rates in Northern Mindanao, particularly in the Cepalco franchise area, Assistant Secretary Romeo M. Montenegro, Deputy Executive Director and Head of Investments Promotion of the Mindanao Development Authority’s (MinDA) International Relations and Public Affairs Office said power rates in Mindanao are dependent on the contracting portfolio of ECs and DUs.

MinDA Asst. Sec. Romeo M. Montenegro chairs a past meeting of the Mindanao Power Monitoring Committee in Cagayan de Oro (file photo)

“With most ECs and DUs in Mindanao now heavily contracted to more expensive technology to meet its long term demand, then the cost of electricity moved along the same upward direction” Montenegro stressed.

“As Chair of the Mindanao Power Monitoring Committee (MPMC), MinDA had reached out to various partners and stakeholders to convey the present Mindanao power situation and proposed measures to DOE, House Committee on Mindanao Affairs, AMRECO, NGCP, consumer advocate groups, renewable energy advocates, and other key players,” he added.

Also ongoing is a study supported by USAID on the impact of COVID-19 to the Mindanao power sector particularly the electric cooperatives that is set to be presented by December.

Not the least, Montenegro disclosed these other MPMC initiatives aimed at improving the power situation in Mindanao:

1. Request ERC to consider postponing plan to reduce system loss threshold to 5% from current 6% to deal with the current system loss problem;

2. Requesting NGCP to prioritize certain long overdue Mindanao transmission upgrading;

3. Urging ECs and DUs to implement measures to improve collection efficiency;,

4. Requesting power generating companies to waive Minimum Energy Offtake (MEOT) or set on negotiated settlement;

5. Requesting NEA to propose/implement innovative financing window for severely affected ECs;

6. Urging the House Mindanao Affairs Committee to secure increased allocation from DBM to support Mindanao rural electrification targets; and

7. Studying the proposed establishment of a Local Power Development Advisory mechanism for better coordination between the ECs, LGUs and key local stakeholders in addressing power related problems, which include, among others, right of way issues, line tripping due to vegetation and refusal of landowners to cooperate, and non-payment of electric bills. 

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DA-10, LGU to compensate affected hog raisers in Iligan City

ILIGAN CITY —– The Department of Agriculture Regional Field Office 10 (DA-RFO-10) assured on Wednesday, November 18, that hog raisers in Iligan City whose will be culled because of the African Swine Fever (ASF) will be compensated. 

Iligan City’s Lechon Industry is expected to take a hit following the discovery of African Swine Flu infected hogs in the city recently.
(Divina M. Suson)

During the latest Talakayan sa PIA press briefing, DA-RFO 10 Executive Director Carlene Collado, said the Northern Mindanao Hog Raisers (NorMinHog) will pay the affected hog farmers P2,000 while the DA will pay P5,00 per culled hog.

The city government of Iligan had also allocated P1.5 million to support the affected farmers, according to city information officer Jose Pantoja.

“The P5,000 from the DA will be released upon submission of complete documents to the DA Central Office,” Collado said.

The DA confirmed on Wednesday that the serum specimen samples taken from hogs from four sitios in Barangay Pugaan  tested positive for the ASF viral DNA.

Collado said coordination and ground activities to contain the disease are being conducted with the Regional ASF Task Force and the local government of Iligan isolating the affected area, eliminating the infected animals and compensating the affected farmers.

Some 664 hogs owned by 149 backyard swine farmers have been culled as of November 18.

City Veterinarian Dr. Dahlia Valera said the owners first reported on November 12 that hogs were observed exhibiting the ASF symptoms of apparent weakness and chills.

“As preventive measure, we immediately depopulated the hogs and buried in an area in Barangay Pugaan,” Valera said.

Amy Lastimoso, team leader of OroVet, an association of hog raisers and feed suppliers in Northern Mindanao, said they were deployed since November 13 to contain the entire Barangay Pugaan to ensure no live hogs, pork or pork products were brought inside or outside the barangay.

A veterinary quarantine checkpoint in Iligan City.
(Divina M. Suson)

“Pito ka mga entry and exit points sa Pugaan among gibantayan. Inspection sa mga sakyanan nga mosulod og mogawas. Kung dunay dalang karne, bisan balon, basta karneng baboy, ikumpiska namo. That’s the instruction given to us,” Lastimoso said. (There are seven entry and exit points in Pugaan that we establish checkpoints. We inspect all the vehicles and confiscate all the pork meats and or pork products. That was instruction given to us.)

Maricar Surban, owner of a small carenderia inside Pugaan market, said the effect of the ASF is a big blow to her since she is still recovering from the pandemic.

“Nalipay na unta ko nga makabalik nami og pamaligya human sa pandemic pero naa napud ni nga problema,” Surban said. (I was happy that we were allowed again to open but there is this problem again.)

Before the reported ASF, she was able to realize a daily income of P500 but has had none since  news of the ASF breakout came out.

Engr. Teod Gayo, a lechon dealer and owner of three food courts in two malls in Iligan City, said  two clients already cancelled their lechon (grilled pig) orders for a party.

“I have 15 orders for this month but two of them already cancelled. I communicated with the other clients but they did not cancel. Maybe they know that ASF does not affect to humans,” Gayo said.

He feared if the disease will continue to affect the community his business will be affected too.

“It is a domino effect. I have two suppliers from Barangay Pugaan. They have stopped supplying me live hogs. We have to buy more expensive ones from outside Iligan. Orders may lower and I may again have to lay off some employees,” Gayo said.

When the pandemic broke out in March, he had to permanently close his food court inside Gaisano Mall and temporarily close another inside the Robinsons mall.

Nine of his 18 employees were laid off because of the negative cash flow he said.

The Iligan City boundary is festooned with tarps warning against the transport of pork and pork products in the city.
(Divina M. Suson)

“Kung magpadyaon ning problema sa ASF, mapugos kog paundang napud aning ubang mga trabahante nako. Sila ang mas makalolooy kay naa paman koy laing negosyo nga magpadayon but I can’t hire them there kay construction man to, dili sila qualified didto,” Gayo said.

(When the ASF problem will continue, I will be forced to lay them off. They are in the difficult situation. I have no problem because I still have other business but I cannot hire them there because it is a construction business, they are not qualified to be there.)

With the compensation the government was given to the hog raisers, Gayo also wished suppliers like him would also be considered.

Collado assured that the Regional ASF Task Force, concerned LGUs, hog industry, and other stakeholders are doing their best to isolate, eliminate and compensate, as well as manage, contain, and control the viral disease.

He called for support in disseminating to the public that ASF is a deadly viral disease to hogs with no vaccine and could greatly affect the swine industry of Region 10 if not contained.

“We are appealing to the public to respect and step on the footbath at the Animal Quarantine Stations and to refrain from bringing in from ASF affected areas any pork and its by-products,” Collado further said.

He also urged online sellers of siomai, kekiam, longganisa and other pork by-products to ensure the origin of their products and secure business permits from their LGUs. Backyard raisers and all concerned are also advised to refrain from swill feeding.

Earlier, Iligan City Mayor Celso G. Regencia ordered the City Veterinarian’s Office and the Iligan City Police Office to restrict animal movement in all parts of the city, especially in Pugaan, including entry to Barangay Mandulog, Pala-o, Abuno, and Tipanoy. He also ordered stricter surveillance and monitoring of the transport of live pigs as well as pork products entering the city.

-end-

Region X has highest per capita GRDP in Mindanao for 2019

The growth rate for Northern Mindanao regional economy may have slackened to 5.9 percent in 2019 compared to 7.1 percent in 2018, but it still attained the highest per capita for the period among Mindanao’s six regions.

During the 2019 Economic Performance of Northern Mindanao Dissemination Forum held virtually on November 20 via zoom and FB Live, the Philippine Statistics Authority Regional Statistical Services Office for Region X (PSA RSSO-X) said per capita GRDP in Region X increased by 4.5 percent to P175,373 in 2019.

The value of the economic output accounted for each person in the region is described by per capita GRDP.
Northern Mindanao also ranked fifth among the country’s 17 regions in terms of real per capita GRDP in 2019.

Per Capita GRDP by Region, 2017-2019
In pesos, At Constant 2018 Prices

The Gross Regional Domestic Product (GRDP) is one of the measures being released by the Philippine Statistics Authority every year. The GRDP measures economic performance from the perspective of the producers of goods and services. It covers the value of goods and services produced in the region during the reference period.

Region 10 vis-à-vis Other Regions

Region 10 was the ninth fastest growing regional economy in the Philippines in 2019.
Its 5.9 percent growth rate was marginally lower than the national growth rate of 6.0 percent.

Gross Regional Domestic Product by Region
Growth Rates 2018-2019, At Constant 2018 Prices

In terms of the percentage share to the Philippine economy, Northern Mindanao had the seventh biggest share to the Philippine economy at 4.5 percent. Moreover, Region X contributed 0.3 percentage point to the Philippine economic growth of 6.0 percent in 2019, making it the seventh biggest contributor to the GDP growth.

Share of Regions to Philippine GDP, 2019
Percent Distribution, At Constant 2018 Prices

Region X was also one of the 16 regions whose economies are Services-based, i.e. driven by service industries.   

Services-based Regional Economies, 2019
At Constant 2018 Prices 

Region X Economy Expands at a Slower Rate by 5.9% in 2019

The economy of Region X grew by 5.9 percent in 2019, slower compared to the 7.1 percent growth recorded in 2018.

The main drivers for growth in 2019 were Wholesale and retail trade, repair of motor vehicles and motorcycles (contribution of 1.9 percentage points), Construction (contribution of 0.7 percentage point), and Education with a contribution of 0.6 percentage point. (Table 1)

IndustryGrowth Rate2018-2019Contribution to Growth2018-2019
(in %)(in percentage points)
Agriculture, forestry, and fishing1.50.4
Industry3.80.9
01. Mining and quarrying-12.2-0.1
02. Manufacturing1.50.2
03. Electricity, steam, water and waste             Management2.40.1
04. Construction8.40.7
Services8.54.6
01. Wholesale and retail trade; repair
              of motor vehicles and motorcycles		7.31.9
02. Transportation and storage6.50.2
03. Accommodation and food service activities7.70.2
04. Information and communication3.80.1
05. Financial and insurance activities8.40.3
06. Real estate and ownership of dwellings6.90.3
07. Professional and business services5.70.1
08. Public administration and defense;
             compulsory social activities		19.20.5
09. Education18.70.6
10. Human health and social work activities6.10.1
11. Other services13.70.1
Gross Regional Domestic Product5.95.9
   
Table 1. Gross Regional Domestic Product of Northern Mindanao by Industry
Growth Rate 2018-2019 (in percent) and Contribution to Growth 2018-2019 (in percentage point), At Constant 2018 Prices

Services recorded the fastest growth of 8.5 percent among the major industries. Public administration and defense; compulsory social activities had the fastest increase of 19.2 percent, followed by Education with an increase of 18.7 percent and Other Services with 13.7 percent. (Table 1)

Industry also grew by 3.8 percent with Construction as the fastest growing sub-industry with a recorded growth of 8.4 percent. On the other hand, Mining and Quarrying suffered a contraction of 12.2 percent. (Table 1)

Agriculture, forestry, and fishing also grew by 1.5 percent. (Table 1)

Gross Regional Domestic Product100.0100.0100.0

Among the sub-industries, the three biggest sub-industries in 2019 were the following: Wholesale and retail trade; repair of motor vehicles and motorcycles with a share of 27.0 percent, followed by Agriculture, forestry, and fishing accounting for 20.3 percent, and Manufacturing with a share of 11.0 percent. (Table 2)

Per Capita GRDP

The value of the economic output accounted for each person in the region is described by per capita GRDP. Per capita GRDP in Region X increased by 4.5 percent recording a value of PhP 175,373 in 2019.

Region 10 vis-à-vis Other Regions

Region 10 was the ninth fastest growing regional economy in the Philippines in 2019.

It was one of the eleven regional economies which posted a growth rate lower than the national growth rate of 6.0 percent. (Figure 1)

Figure 1. Gross Regional Domestic Product by Region

Growth Rates 2018-2019, At Constant 2018 Prices

By sub-industry, the region recorded the highest increase in Public administration and defense; compulsory social activities among the 17 regions. Likewise, the region ranked first in terms of growth rate in Professional and Business Services. Moreover, the region recorded the second highest increase in Real Estate and Ownership of Dwellings, and third in Education. (Table 3)

IndustryGrowth Rate2018-20192019 National Ranking 
 (in %)
Agriculture, forestry, and fishing1.58th
Industry3.88th
01. Mining and quarrying-12.215th
02. Manufacturing1.511th
03. Electricity, steam, water and waste             management2.415th
04. Construction8.45th
 
Services8.58th
01. Wholesale and retail trade; repair
              of motor vehicles and motorcycles		7.311th
02. Transportation and storage6.58th
03. Accommodation and food service activities7.78th
04. Information and communication3.815th
05. Financial and insurance activities8.417th
06. Real estate and ownership of dwellings6.92nd
07. Professional and business services5.71st
08. Public administration and defense;
             compulsory social activities		19.21st
09. Education18.73rd
10. Human health and social work activities6.19th
11. Other services13.78th
 
Gross Regional Domestic Product5.99th
   
Table 3. Gross Regional Domestic Product of Northern Mindanao by Industry
Growth Rates 2018-2019 (in percent) and National Ranking
At Constant 2018 Prices

In terms of the percentage share to the Philippine economy, Northern Mindanao had the seventh biggest share to the Philippine economy at 4.5 percent. (Figure 2) Moreover, Region X contributed 0.3 percentage point to the Philippine economic growth of 6.0 percent in 2019, making it the seventh biggest contributor to the GDP growth.

1st World Fintech Festival: Philippines as Asia’s next big tech hub Marks digital footprint across the globe

The Philippines is set to showcase its best financial technology (fintech) practices to an international audience and cement its global digital footprint in the five-day virtual World Fintech Festival (WFF) on December 7-11. Previously presented as the Singapore Fintech Festival (SFF) in past years, this year’s WFF shall spotlight key executives and decision-makers from different Asian nations as they discuss how they pilot fintech to produce societal impacts.  Global tech legends like Bill Gates, Google CEO Sundar Pichai, and Microsoft CEO Satya Nadella will broadcast their talks to WFF participants in ten free sessions through YouTube and Facebook. 

The WFF-Philippines, co-presented by leading telecommunications company Globe, is also intended to galvanize Philippine industries to accelerate their own adoption of fintech, be open to innovation, and invest in their workforce’s digital upskilling. It is designed to bring together the public and private sector to help build inclusive digital economies.

During the virtual presser on November 18, Sopnendu Mohanty, Chief Fintech Officer of the Monetary Authority of Singapore (MAS), remarked on the readiness of the nation’s fintech industry. He said, “The Philippines is the country that I will never ignore. You have a remarkable GDP and a fairly young demographic. The true test of a company’s strength comes from a crisis—and the businesses in the Philippines have truly demonstrated this.”

A first in the country, the WFF – Philippines is organized by GeiserMaclang Marketing Communications, Inc. (GMCI) in partnership with MAS and SingEx. It is expected to draw in the same crowds who attend the SFF, including business leaders and CEOs from 140 countries. 

Industry leaders who will headline the WFF-Philippines were present during the virtual presser: Melchor Plabasan, Director, Bangko Sentral ng Pilipinas; Martha Sazon, President and CEO of Mynt and Chairman of the EMoney Association of the Philippines Inc.; Dr. Justo Ortiz, Chairman, UnionBank of the Philippines and President of the Fintech Philippines Association; Noel Bonoan, KPMG Vice Chairman and COO; and Atty. Mark Gorriceta, Managing Partner of Gorriceta Africa Cauton & Saavedra.

WFF-Philippines Convenor and GMCI’s Co-founder Amor Maclang, who moderated the panel discussion, says the event can amplify the Philippines as a tech hub attractive to global investors. “We are championing the Philippines, following the footsteps of Singapore, as an incubator for technology and fintech. At the same time, tech is here to serve the underserved, the underbanked, and the undersheltered. Fintech has created opportunities for people on the spot,” said Maclang, citing the sari-sari stores and online entrepreneurial shops as examples of fintech’s inclusivity.

Bangko Sentral ng Pilipinas (BSP) has also paved the way for the country to be more open when it comes to seamless and contactless payment behaviors. Its data shows a surge in the use of internet banking, mobile apps, and services like Instapay and PesoNet during the pandemic.  BSP Director Melchor Plabasan revealed some initiatives, saying, “More than four million accounts were opened during the first two months of the lockdown. We recently crafted a three-year roadmap which aims to develop an efficient, safe, and secure digital-payment ecosystem. We aim to shift 50% of retail payments to online, and ensure that 70% of adult Filipinos will have access to digital accounts.”

Martha Sazon, President and CEO of Mynt, which manages the country’s leading mobile wallet app GCash among its innovations, revealed one of the trends observed during the lockdown:  “It is the younger generation who is most aware of their financial stability within this time. These things have pushed us to provide savings, credit, and insurance, all within GCash. To date, we have gained 26 million GCash customers, which is ten times higher than our monthly users in 2017.”

Ms. Sazon, who is also Chairman of the EMoney Association of the Philippines, estimated that one trillion transactions will be made through GCash by the end of December. 

Meanwhile, UnionBank of the Philippines, which pioneered digital banking, was able to accommodate the large spikes of consumer demand when the clamor for online transactions soared during the first few months of the COVID-19 crisis. Dr. Justo Ortiz, UnionBank Chairman, pointed out the future of money movements:  “Financial transactions, embedded in actual live transactions people do day to day, are the ultimate end game. Whatever you do, whether you buy food, take a trip—we will embed it in financial transactions across the board.”

Auditing firm KPMG has leveraged on tech to redefine its business operations, services, and client management system. Its Vice Chairman and COO, Noel Bonoan, explained, “We assist our clients on automation, artificial intelligence, and cybersecurity. You cannot properly assist them if your organization cannot practice what you preach.” 

Atty. Mark Gorriceta, Managing Partner of law firm Gorriceta Africa Cauton & Saavedra, affirmed that speedy, accountable action holds the keys to digital transformation. He said, “We help our clients navigate and understand its intricacies. In aiming for responsible fintech, we closely work together with the BSP, the Insurance Commission, and the Securities and Exchange Commission.” 

Dr. Ortiz reiterated that in all great journeys of impact, making the difference at scale requires great effort and investment in human capital which is “the challenge of our generation. As the speed of innovation is accelerating, we need to double-time and intensify our efforts so nobody will be left behind,” he emphasized. “Learning, unlearning, and relearning will be a consistent process in our digital journey to become a robust and competitive digital society.”

The World Fintech Festival-Philippines agenda of speakers will span the length of the five-day global program which will run from December 7-11. For more information and to register for the event, click here: https://www.fintechfestival.sg/register-now. 

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Marawi Bio Testing Laboratory opens

MARAWI CITY —– The local government unit of Marawi City opened Wednesday (November 18) a P28-million bio molecular testing laboratory located inside the old building of Amai Pakpak Medical Center (AMPC) this city.

The opening delayed for two-months since several documents and requirements from the Department of health (DOH) needed to be complied with first, chief of hospital Dr. Shalimar Rakiin said.

The P 28-million biomolecular testing laboratory inside the Amai Pakpak Medical Center in Marawi City opened Wednesday, November 18. (Divina M. Suson)

The four staff assigned to man the facility also had to undergo a series of trainings in Davao City and pass an examination before a license to operate (LTO) was issued.

The LTO was only received Tuesday morning (November 17) and APMC management immediately opened the laboratory since there were still many collected specimens that need to be analyzed.

Rakiin said the establishment of the laboratory is a big help to the responses made by the provincial government of Lanao del Sur and the city government of Marawi that contributed funds from their Bayanihan Grant Funds to construct the facility.

A staff member of the  biomolecular testing laboratory at the Amai Pakpak Medical Center in Marawi City tours reporters inside the facility following its ceremonial launching Wednesday, November 18. Behind her is the polymerase chain reaction (PCR) machine that runs the specimen samples and the biosafety cabinet that stores the samples. (Divina M. Suson)

Previously, it would take four to five days before the APMC or the Integrated Provincial Health Office (IPHO) received the result of those swabbed for the reverse transcript polymerase chain reaction (RT-PCR) test.

“Because we have to first gather specimen samples here (at APMC), then after two days we send them to NMMC (Northern Mindanao Medical Center) in Cagayan de Oro City then wait for another two to three days to get the result,” Rakiin said.

With the opening of the facility, pregnant mothers who would undergo caesarean operations and patients who need surgery would minimize their waiting time and resources waiting for their COVID test results.

“One of the required procedures in the medical management of patients scheduled for caesarean procedure or surgery, is to undergo a RT-PCR test,” Rakiin said.

A staff of the newly-opened biomolecular testing laboratory inside the Amai Pakpak Medical Center in Marawi City checks on the first batch of specimen samples to be tested and analyzed by the brand new polymerase chain reaction (PCR) machine on Wednesday, November 18. (Divina M. Suson)

Mayor Majul Gandamra, who graced the opening, said the establishment of the biomolecular testing laboratory in Marawi City showcased the collaborative efforts of the city and the provincial governments in responding to the pandemic.

“The challenge of fighting the virus while simultaneously rebuilding our city from ruins is not an easy task to achieve. Thus, we are thankful for the efforts of all our frontliners from the local government to the health workers in APMC, the City Health Office (CHO) and the IPHO,” Gandamra said.

In June, Lanao del Sur Governor Mamintal Adiong, Jr., turned-over P10 million while Gandamra turned-over P2-million from the Bayanihan Grant Fund the national government downloaded for the local government’s response against COVID-19.

In May, LGU Marawi received P58.7 million as Bayanihan Grant for Cities and Municipalities (BGCM) fund, equivalent to one month internal revenue allotment (IRA) share while Lanao del Sur received P117 million Bayanihan Grant for Provinces fund equivalent to half a month IRA share.

This is in accordance with Republic Act (RA) 11469 or the Bayanihan Heal as One Act to allow LGUs to quickly respond to the public health crisis.

The BGCM is intended to “boost the LGU’s capacity in immediately responding to the COVID-19 emergency” while the BGP is to used “as augmentation to the funding requirements for the operation of provincial, district and other local hospitals operated by the provincial government and maintenance of duly established provincial checkpoints related to COVID-19, in support of the on-going efforts of the government to respond to the crisis brought about by the COVID-19 pendemic.”

As of November 14, Lanao del Sur logged in 30 confirmed cases with 971 recoveries for a total of 1,041 infections since the start of the pandemic in March. There are 40 reported deaths due to COVID-19 in the province, including Marawi City.

Eight of the 30 active cases are from Marawi as of November 16. The city has recorded 581 confirmed cases since the start of the pandemic. Twenty one (21) of the 40 reported mortalities are from Marawi City. 

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