Mindanao Review Volume 1 Issue 2

Inside pages...

Mindanao cacao summit aims for industry growth

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MinDA, DOE launch Mindanao web portal for RE project applications

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International trade fair and conference clinch more than P10 billion in sales and deals

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Local executives endorse Mindanao development corridors program

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M

indanao

Review

The official publication of the Mindanao Development Authority

March 2015

Volume 1, Issue No. 01

EAGA adopts socio-cultural and educ pillar

SOCIO-CULTURAL TIES MinDA Chair and Philippine Signing Minister for BIMP-EAGA Secretary Luwalhati Antonino shares a light moment with H.E. Rizal Lukman, Indonesian Deputy Minister for Coordinating Ministry for Economic Affairs during a working lunch at the 18th BIMP-EAGA Ministerial Meeting held at the International Convention Center in Bandar Seri Begawan, Brunei Darussalam.

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n recognizing the crucial roles of sociocultural links and education in the promotion of greater understanding among diverse communities, the signing ministers of BIMP-EAGA recently agreed to explore socio-cultural and education as one of the strategic pillars of the ASEAN sub-region.

During the 18th BIMP-EAGA Ministerial Meeting held in November last year in Bandar Seri Begawan, Brunei Darussalam, signing ministers from the sub-region stressed that socio-cultural activities can contribute to building strong foundation for greater understanding, good neighborliness, and a shared sense of responsibility.

BIMP-EAGA stands for Brunei Darussalam Indonesia Malaysia the Philippines East ASEAN Growth Area. The initiative was launched in 1994 as a key strategy to accelerate social and economic development of less developed areas in participating countries.

“Recognizing the important role

Photo by Leoncio Rodaje

of education in contributing to the establishment of an ASEAN Community that is people-centered and socially responsible, we agree to explore and promote cooperation among the higher learning institutions in developing academic and professional human resource in the sub-region,” the ministers said in a joint statement that was released after the meeting.

The proposed socio-cultural and education pillar will become the fifth pillar of BIMP-EAGA with tourism, agribusiness, connectivity, and environment being the other four pillars of the sub-region. The Philippine delegation, headed by MinDA Chair Luwalhati Antonino proposed for the inclusion of the new pillar during the 18th Ministerial Meeting.

“This pillar is founded on the fact that BIMP-EAGA is a sub-regional family kept cohesive and firmly bonded by historical ties and geographic closeness,” said Antonino while adding “the crosscutting facets of socio-

Mindanao in Figures:

cultural sharing forms the core for greater understanding.”

She said that the inclusion of education in this pillar underscores the important of promoting knowledge sharing among students, young professionals, and faculty, as well skills improvement of workers within the sub-region.

A presentation of the top priorities of the new pillar will be done in April this year during the proposed BIMP-EAGA Leaders’ Summit in Malaysia.

Malaysian Minister of Foreign Affairs Pehin Orang Kaya Pekerma Dewa Dato Seri Setia Lim Jock Seng said the move to create the new pillar puts great emphasis on the human aspect of the sub-regional grouping.

“This is in line with the ASEAN’s goal to become more people-centered, and demonstrates how BIMP-EAGA can look into cooperation that involves the youth,” he added.

Turn to page 7

In 2013, the United States was Mindanao’s top export market with a share of 26 percent, followed by China with 22 percent and Japan with a share of 21 percent. The Netherlands and Korea ranked third and fourth with 8 and 7 percent shares respectively. Fresh or dried banana (including plantain), was Mindanao’s largest export with a total value of more than US$911 million.

Mindanao cacao summit aims for industry growth

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MINDANAO CHOCOLATE A worker attends to a cacao solar drying facility at Casco Commodity Inc., a Davaobased enterprise that trades dried cacao beans from Mindanao to the international markets. The cacao beans are dried for five to six days to produce high-quality chocolates.

that we have to plant more than 41 million trees by 2018, and I am more than happy to announce that we have already started our massive campaign for the planting of cacao trees,” she said.

A production and trading agreement between Marihatag, Surigao del Sur and Kennemer Foods International that will initiate the massive planting of four million cacao trees in the town’s 5,000 hectare pilot site was sealed in July last year.

Other initiatives that strategically complement efforts to push for cacao industry development are also being implemented in the island-region.

A public-private sector collaboration

aimed to ensure that farming communities become integral components in the agriindustry supply chain has identified cacao as one of its priority crops in addition to coconut and coffee.

Dubbed as the Mindanao Inclusive Agribusiness Program (MIAP), it is designed to allow low income groups to participate in the production and supply chain, enabling them to benefit from long-term employment and sustained socio-economic development.

In October last year, MIAP aligned with its goals and objectives with the Mindanao Development Corridors to advance inclusive agribusiness models in the island-region. (please see full story in page 7)

CACAO SUMMIT Key players from Mindanao’s cacao industry participate in a 3-day summit in Davao City aimed to facilitate industry discussion and the creation of alliances that will help strengthen the region’s cacao sector.

Mindanao Review | 2 Photo by Kathy Mateo

Photo by Kathy Mateo

ith the common goal of making Mindanao’s cacao globally competitive, industry leaders convened for a three-day summit aimed to discuss industry issues and strengthen strategic alliances that will help boost the region’s cacao sector.

Dubbed as Mindanao Cacao Summit and Inter-agency Convergence, the event, held at the Waterfront Insular Hotel in Davao City was spearheaded by the Cacao Industry Development Association of Mindanao Inc. (CIDAMi). The Department of Agriculture, Department of Trade and Industry, and MinDA provided support to the event.

“I see this convergence as our initial step in ensuring a brighter future for the region’s cacao industry, as we aim to develop a distinct brand for the cacao and cacao-based products from Mindanao,” said MinDA Chair Luwalhati Antonino.

Antonino, a known advocate of cacao products from Mindanao urged the industry leaders to utilize the summit as an opportunity to craft strategic steps in helping Mindanao cope with the increasing international demand for chocolate.

In her opening speech, she reported that the global supply deficit for cacao currently stands at 160,000 metric tons (MT).

Mindanao aims to produce at least 80,000 to 100,000 MT of cacao beans targeted for the increasing domestic and global markets.

The Philippines’ share to world production is less than 1 percent or only about 4,800 metric tons in 2012. Mindanao contributes 90 percent of the country’s total production.

“The challenge is huge and the road ahead for this target is not easy. This means

MinDA, DOE launch Mindanao web portal for RE project applications

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n online web portal designed to track and monitor renewable energy (RE) projects in Mindanao was launched at the Diamond Hotel, in October last year, in line with the goal to achieve a balanced mix of fossil-fueled and RE sources across the island-region.

MinDA, the Department of Energy (DoE) and the US Agency for International Development (USAID) through the Mindanao Power Monitoring Committee (MPMC) have officially launched the One-Stop Facilitation and Monitoring (OSFM) Web Portal, pushing forward the move to streamline application process for the region’s RE projects.

Speaking before partner agencies and other guests from the power sector, MinDA Chair, Sec. Luwalhati Antonino emphasized the importance of ensuring that the entry of additional capacities to be introduced in the island region should put a specific focus on the accelerated deployment of RE sources.

Committed capacities have provided excess net reserves for the island region since 2009, however, most of these projects are centered on fossil-fueled power sources – particularly coal-fired power plants.

“While we welcome a regime of reliable power supply in Mindanao with the

installation of baseload plants, it behooves upon us to also undertake deliberate and purposive efforts to accelerate the deployment of RE capacities,” said Antonino.

The OSFM web portal is established to allow fast-track processing of RE power project applications through a monitoring system that includes facilitative tracking and real-time status updates for partner government agencies and project stakeholders.

Antonino further stressed that the development of RE sources in the island-region is imperative in the thrust of substantial investment and trade opportunities for Mindanao.

“This is in line with the Mindanao Development Corridors, one of MinDA’s flagship programs which is concentrated on the expansion of logistical, infrastructural, and connectivity endeavors within the islandregion,” she said.

Antonino added that reliable, affordable, and sustainable power through RE projects is essential in the full realization of the said strategy.

“It is important to stress that RE development plays a huge part in aggressive and effective investment programming and

Photos by Fritz Flores

promotions for us to achieve a balanced and inclusive growth among our regions in Mindanao,” she said.

During the web portal’s launch, a ceremonial turnover of computer certificates took place, while stakeholders were shown a demonstration of how the facility can be used in tracking and monitoring ongoing RE project applications.

Romeo Montenegro, MinDA’s director for Investment Promotions and Public Affairs Office and the head of the MPMC’s technical working group stressed that the OSFM web portal is just an initial phase in the vision of the MPMC towards RE development, which is also in line with the Mindanao 2020 development strategy.

“The One-Stop web portal is but a first step towards achieving the goal of a streamlined application process for RE development, which is also consistent with the Mindanao 2020 strategy on the diversification of energy mix for the island region,” said Montenegro.

Established through Executive Order No. 81, MPMC plays an active part in spearheading and coordinating efforts to address and improve the overall power situation in Mindanao.

MinDA Chair Sec. Luwalhati Antonino (top left) meets the media during the web portal launch held at the Diamond Hotel in Manila in October last year that was also attended by (top right) MinDA Director Romeo Montenegro, DOE Undersecretary Raul Aguilos, USAID’s B-Leader Project Chief of Party Divina Chingcuanco, Association of Mindanao Rural Electric Cooperatives President Sergio Dagooc, and USAID’s B-Leaders Senior Adviser Michael Pitlock. The web portal is designed to streamline application process for Mindanao’s renewable energy projects (lower left and right photos).

3 | Mindanao Review

International trade fair and conference clinch more than P10 billion in sales and deals Considered as the largest sub-regional trade fair and business gathering in 2014, the five-day event, held at SM Premier’s SMX Convention Center in Davao City also featured simultaneous side events designed to attract foreign investments and promote regional cooperation within ASEAN and the Pacific region.

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op business players from two regional sub-groupings in ASEAN sold more than P4.5 billion worth of products during an international trade fair and conference held in Davao City last year.

A total of P6 billion worth of possible investments and business leads were also cornered during the business-matching sessions of the 2nd BIMP-EAGA and IMT-GT Trade Fair and Business Leaders’ Conference, which gathered more than 1,500 participants mainly from Brunei Darussalam, Indonesia, Malaysia, Philippines, and Thailand.

Among the products that caught the attention of the buyers included raw and processed food, textile, clothing, furniture and kitchenware. Service products from agribased companies and tourism also fared well during the event.

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Some of the big ticket investments sealed during the business-matching sessions included the proposed coffee plantation in Sultan Kudarat and the oil palm plantation in North Cotabato amounting to P1.5 billion each, an oil depot in the Autonomous Region in Muslim Mindanao worth P440 million, and a corn processing facility in South Cotabato amounting to P350 million.

The five-day trade fair gathered more than 25,000 local and international visitors and attracted the participation of buyers and business representatives from Canada, Japan, Mexico, Netherlands, Singapore, South Korea, Taiwan, UK and the USA. “Although these figures are indicative, but these illustrate a re-invigorated interest on the two sub-regional groupings, which offer a wide-range of investment potentials,” said Sec. Luwalhati Antonino, chair of the

Mindanao Development Authority.

She added that potential investments will provide more than 127,000 employment opportunities for the people of Mindanao.

“What we have achieved so far only proves that international gatherings such as these can transcend beyond social and cultural affairs and can provide tangible results that can be translated into actual investments and trading,” added Antonino.

Considered as the largest sub-regional trade fair and business gathering in 2014, the five-day event, featured simultaneous side events that included an ICT summit, exporters’ forum, food festival, a golf tournament, and a film screening - all designed to attract foreign investments and promote regional cooperation within ASEAN and the Pacific region.

The Indonesian Batik takes a modern form (left page photo) during a fashion show at the BIMP-EAGA trade fair held in October last year in Davao City’s SMX Convention Center. ASEAN business leaders (top) participate in the Business Leaders’ Conference held simultaneously during the fair’s opening which featured high-end ASEAN products and gathered top producers and exporters from the region, as well as attracted key personalities that included former Philippine President Fidel Ramos (left photos). Members of Songspell (above), an internationally-acclaimed children’s choir perform pop songs during the BIMP-EAGA welcome dinner.

(Photos by Raymond Esperat and Fritz Flores)

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TreeVolution: Mindanao, Philippines bags Guinness World Record

Top photos by Fritz Flores and Raymond Esperat; bottom photo by Martin Fernando Ebarle Bernard Jr.

MinDA Undersecretary Janet Lopoz, (photos from left to bottom) MinDA staff, student volunteers, and MinDA Chair Sec. Luwalhati Antonino participate in planting seedlings at a site in Marilog District, Davao City during the Mindanao-wide TreeVolution:Greening MindaNOW! on September 26, 2014. More than 9,000 volunteers participated in the event in Marilog.

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he official verdict is out: TreeVolution: Greening MindaNOW holds the world record for “most trees planted simultaneously (multiple locations).

“We are happy to announce that Mindanao, Philippines has officially set a new Guinness World Record for the most trees planted simultaneously at multiple locations through TreeVolution: Greening MindaNOW held on September 26, 2014,” Secretary Luwalhati Antonino, chair of the Mindanao Development Authority, announced in a statement Monday.

Antonino said, the new world record set by the TreeVolution is 2,294,629 trees, carried out by 122,168 volunteers at 29 locations across Mindanao.

“This is a huge feat for all Mindanawons, especially the volunteers and partners, particularly the Department of Environment and Natural Resources (DENR) who showed overwhelming support in successful conduct of TreeVolution.

“We express our heartfelt gratitude to all those who participated in the event. Their involvement has made this historic event

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even more meaningful,” she said.

Although over 4 million trees were planted during the event in September last

year, only 2,294,692 trees were officially tallied due to the strict verification process of the Guinness committee. The number, however, was enough to break the record

previously held by India.

India’s record was 1,945,535 trees planted by 340,200 people in 408 sites. It was set in August 2011.

More important than setting the record, Antonino emphasized, “this official number from Guinness does not in any way reduce the long-term impacts of the actual 4 million trees planted in over 7,800 hectares of land all over Mindanao.”

“The 4 million seedlings planted add 1 percent to Mindanao’s target forest cover by 2016. These trees, once fully mature can supply oxygen to around 16 million people daily, or 75 percent of the total Mindanao population.”

There’s also no doubt on how the seedlings we planted could eventually minimize the impacts of climate change,” she said.

Antonino added that the TreeVolution was also a proof that Mindanawons could bond together.

“TreeVolution has showed one overwhelming reaffirmation – that Mindanawons can unite for a common good, and that, we, Mindanawons, can truly become one for the environment,” she said.

(DEDoguiles-PIA 12)

Inclusive growth initiative in Mindanao adopts development corridors program

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n inclusive growth initiative in Mindanao has aligned its goals and objectives with the Mindanao Development Corridors program in efforts to reduce poverty and accelerate private sector investments that will increase employment and spur livelihood opportunities in the island-region.

The Inclusive Business in Mindanao (IBIM), a public-private partnership between the Philippine Business for Social Progress (PBSP) and the Mindanao Development Authority (MinDA), will adopt the Mindanao Development Corridors program to advance inclusive agribusiness models in the islandregion in line with the Aquino administration’s pivotal thrust of inclusive growth.

At the launch of the Mindanao Inclusive Agribusiness Program (MIAP) a component of IBIM, held in Davao City in October last year, PBSP Executive Director Rafael Lopa said that to achieve its goals, the program shall align its targets and activities with the Mindanao 2020 Peace and Development Framework Plan and the Mindanao Development Corridors program especially where the plan directly helps in poverty reduction and private sector investments to open up employment and livelihood opportunities.

“To help achieve the goals of IBIM, we are advocating the inclusive agribusiness concept of applying business strategies which bring about cost-efficiencies, resource stability and consistency in standards throughout the value chains, and ultimately enlarge the total market,” he said.

Lopa added that MIAP calls for agribased investments that will allow low income groups to participate in the production and supply chain, enabling them to benefit from Mindanao Review

Mindanao Review is the Official Publication of MinDA

Publisher Sec. Luwalhati Antonino Editorial Board Usec. Janet M. Lopoz, CESO I Dir Reyzaldy B. Tan Dir. Romeo M. Montenegro Editor-in-Chief Leoncio M. Rodaje Editorial Staff Raymond D. Esperat Fritz E. Flores Kathy Mar S. Mateo Mary Ann C. Quisido Iris Mae F. Quizo 4th Floor, SSS Building, JP Laurel Ave. Bajada, Davao City (082) 221-7195 | www.minda.gov.ph

long-term employment and sustained socioeconomic development.

“It is gratifying that even as we speak, inclusive business models are already on the rise,” he said while adding “for some companies, it was a pleasant realization that many of them – and perhaps many more out there – have already been engaged in inclusive business without realizing it.”

President Benigno Aquino III who keynoted the program launch expressed delight on the increasing interest to push Mindanao’s inclusive business agenda.

“I am glad to see that the government is not alone through this endeavor. Through the MIAP you are able to build the capacities of Mindanao’s small farming communities,” the President said.

As a support mechanism to the national government’s thrust of inclusive growth, MinDA is promoting a scaled-up investment facilitation that is directed by an inclusive business agenda that focus on the facilitation of private investments, which incorporate communities with high incidence of poverty and low human development index.

“The complementation of the IBIM and the Mindanao Development Corridors program forms part in our integrated approach of promoting economic growth that is broad-based and must cut across societal spectrums to become largely inclusive,” said MinDA Chair Luwalhati Antonino.

She added that part of the objectives of the PBPSP-MinDA partnership is to ensure that private companies include the marginalized sector in their value chain either as suppliers, distributors, or employees to achieve shared goals of inclusive growth and poverty alleviation.

EAGA adopts...

The new pillar also aims to explore and promote cooperation among higher learning institutions in developing academic and professional human resource in the subregion.

Antonino said the past several and ongoing BIMP-EAGA socio-cultural activities range from sports competitions, food festivals, student exchanges and Boy Scouts jamboree are all aimed to strengthen the growth area’s historical and cultural ties.

During the recently-concluded 2nd BIMPEAGA and IMT-GT Trade Fair and Business Leaders’ Conference held in Davao City, a side event on technical vocational education and training was conducted to intensify exchange

PHOT

synthesis

MinDA staff and other government officials (top to bottom) honor the remains of the late Senator Vicente T. Paterno in solemn ceremonies at the MinDA office. A memorial service was held at the Davao City Sangguniang Panglungsod Building, followed by a necrological service at Shrine Hills.

One of the wishes of the late Senator was to bring his remains in Mindanao, which he considered as his second home. (Photos by Fritz Flores and Raymond Esperat)

of skills and human resources between Mindanao and its counterparts in the subregion.

A partnership was also forged between the Palawan State University (PSU) - Philippines and Jesselton College - Kota Kinabalo in July last year to facilitate workplace industry placement and education programme exchanges between the neighboring states.

“We pushed for this pillar as our resolve to work towards people-oriented goals, and to form a socially-responsible EAGA community that will harness the human dimension of the sub-region,” said Antonino.

7 | Mindanao Review

Local executives endorse Mindanao development corridors program

Photos by Fritz Flores

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he Confederation of Provincial Governors, City Mayors and Municipal Mayors’ Leagues Presidents of Mindanao (Confed-Mindanao) recently reconvened and endorsed the Mindanao Development Corridors program as a key strategy that will help the island-region achieve connectivity and enhance its global competitiveness.

At the recent membership meeting, newly-elected Confed President Surigao del Sur Governor Johnny Pimentel led the promulgation of a resolution supporting the Mindanao Development Corridors, saying that “it is crucial for Local Government Units (LGUs) to adopt the corridors program as a means to ensure that localities are ready to assimilate inanticipation for the ASEAN integration in 2015.”

He added that it is high time for Confed members to start re-evaluating plans, programs, and projects to ensure that these are geared towards preparing Mindanao for the imminent integration in the ASEAN Economic Community (AEC).

MinDA, through the Mindanao Peace and Development Framework Plan or the Mindanao 2020, adopts the Mindanao

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Undersecretary Janet Lopoz, MinDA’s executive director presents to members of Confed-Mindanao the Mindanao Development Corridors (inset, left photo), as a spatial strategy that will position the region as a single and integrated economy.

Secretary Luwalhati Antonino explains the crucial roles of Local Government Units in the full implementation of the strategy (upper left photo) while former Confed-Mindanao President Gov. Rodolfo del Rosario (right) congratulates Current President Johnny Pimentel following the organization’s general elections.

Development Corridors as a key spatial strategy aimed to improve infrastructure, establish connectivity, and spur the development of growth clusters within the island-region, allowing it to achieve balanced and inclusive growth among its regions.

“This strategy will transcend regional boundaries in terms of commodity transfer which will make regions in Mindanao commercially viable,” MinDA Chair Luwalhati Antonino told Mindanao local chief executives at the meeting.

She added that the initiative also aims to position Mindanao as a single, integrated economy that is able to leverage and fully participate in economic groupings such as the BIMP-EAGA, ASEAN, and the rest of the global economic communities.

“Since our last meeting in 2012, we have moved ever closer to ASEAN economic integration. That is why we are rolling out the Mindanao Development Corridors to help us maximize Mindanao’s potentials into this economic cooperation,” said Antonino.

She stressed that Confed-Mindanao’s cooperation is crucial to achieving the Mindanao 2020’s goals and objectives, particularly in pushing for meaningful

governance strategies.

“Our LGUs know their territory better, which make them among our strongest allies in Mindanao’s development planning and in integrating the corridors initiative,” said Antonino.

Pimentel said that members of ConfedMindanao will exert all efforts needed to assume the role as ‘Mindanao’s voice’ particularly in terms of infrastructure development and national budget allocation.

Established in 1990, Confed-Mindanao is an advocacy group of Mindanao local chief executives which pursues peace and development, nation-building, and other initiatives that promote the Mindanao agenda.

The organization has been instrumental in creating major progresses in the islandregion, specifically in the areas of power and infrastructure, connectivity, disaster risk and reduction, and in increasing Mindanao’s share in the national budget.

Pimentel is the first Confed-Mindanao president who hailed from CARAGA region.

Outgoing President Davao del Norte Governor Rodolfo del Rosario sits as one of the confederation’s Board of Directors.