Republic of the Philippines

REGIONALDEVELOPMENTCOUNCIL
National Economic and Development Authority
Region Ill, Central Luzon
2/F Hyatt Garden Building, Dolores,
City of San Fernando, Pampanga 2000
Telefax. Nos. (045) 963-6772 to 73, 961-3902
e-mail: neda@pldtdsl.net
(Excerpts from the Minutes of the 13th Regional Development Council III (RDC) Meeting held 25
February 2011 at Mimosa Convention Center, Clark Freeport, Pampanga)
RDC Resolution No. 03~1-2011
APPROVING AND ADOPTING THE CENTRAL LUZON MEDIUM TERM REGIONAL DEVELOPMENT PLAN
(CL-MTRDP), 2011-2016
AND THE MEDIUM TERM REGIONAL INVESTMENT PROGRAM (MTRIP),
2011-2016
WHEREAS,

the President directed the formulation of Central Luzon Regional Development Plans
for 2011-2016 for incorporation in the Medium Term Philippine Development Plan,
2011-2016;

WHEREAS,

the formulation of the CL-MTRDP 2011-2016 emphasized the production of a good

document on the region's direction and priorities for the next six years and the
process to be observed to maximize people's participation;

WHEREAS,

the Central
2016;

WHEREAS,

the formulation of the CL-MTRIP is in consonance with EO 325 that gives the RDCs
the mandate to review, prioritize and endorse the investments programs and annual
budgets of national government agencies; and,

WHEREAS,

the CL-MTRIP contains the list of public sector programs and projects necessary to
realize the development objectives of the region.

Luzon CL-MTRIP is a companion

document

of the CL-MTRDP, 2011-

NOW, THEREFORE, ON MOTION DULY SECONDED, BE IT

RESOLVED, AS IT IS HEREBY RESOLVED, That the RDC III approves and adopts the framework
Central Luzon Medium Term Regional Development Plan, 2011-2016;

of

RESOLVED FURTHER, That the RDC III requests all concerned to submit to the secretariat their
proposed priority programs, projects or activities for 2011-2016
consistent with the adopted
framework.

RESOLVED FINALLY, that a copy of this resolution be furnished to all concerned.

Done in Clark Freeport, Parnpanga this 25th day of February in the year of our Lord two thousand
eleven.
Certified Correct by:

N~/LYNNETIE Y. BAUTISTA
Secretary, RDC III
(Assistant Director, NEDA Ill)

Approved by:

C<={ .--A'

. ~

EMIGIO A. MER~O
Presiding Officer, RDC III
(Regional Director, NEDA Ill)

and



Message

I commend the NEDA Regional Development Councils and

all stakeholders in the 17 regions for coming together to
formulate your respective Regional Development Plans.
May this partnership among regional and local institutions,
the private sector, and civil society ensure the continued
success of these programs and the distribution of their
benefits throughout the country.
Along with the Philippine Development Plan, the RDPs will
guide our development efforts in the next five years, and
will act as a common roadmap for our countrys development and for the establishment of
the necessary infrastructure that will help us achieve our goal of increasing economic and
social opportunities for our people. Guided by our commitment to the UN Millennium
Development Goals, our concerted efforts will not only help accelerate economic growth, but
will also give our provinces improved access to quality education, health, and social services.
We came to government with a mandate to eradicate poverty and create a better future for
our nation. As we carry out key reforms in the bureaucracy, we also strive to set in place an
environment of sustainable and equitable progress in the coming years. Together, let us
fulfill the potential of our great nation.

BENIGNO S. AQUINO III

President
Republic of the Philippines

MANILA
May 2011

Message

The Regional Development Plans (RDPs) represent the
aspirations of Filipinos in different areas of the country. As
accompanying documents of the Philippine Development
Plan (PDP) 2011-2016, the RDPs also provide the spatial
dimension to the national plan by identifying the regions
contributions to our goal of a high, sustained and broadbased growth.
This inclusive growth involves rapid
economic expansion that must reach population groups
throughout the country through the provision of productive
employment opportunities, thereby reducing poverty.

The attainment of our goals requires massive investments in infrast

infrastructure,
ructure, social services and
other productive activities. The PDP, along with the RDPs are the key instruments that will guide
the proper and equitable allocation of resources to ensure improvements in the welfare of our
people. Likewise, our plans shall direct our efforts in protecting the environment, reducing
climate and disaster risks, promoting good governance and ensuring peace and stability.
The RDPs provide the framework for local development. We thus enjoin the local government
units to align their local plans and programs with the RDPs. We likewise seek the support of
regional institutions and the private institutions in the realization of the plans which many of
them have helped prepare. We need to strengthen our multistakeholder cooperation particularly
as we promote public-private partnership to improve the provision of services for our people.
I thank the Regional Development Councils (RDCs) for spearheading the preparation of the RDPs
and we count on their continued leadership in coordinating development efforts in the regions.

CAYETANO W. PADERANGA, JR.

Secretary of Socioeconomic Planning and
NEDA Director-General



Message

Greetings!

Being a gateway to the world, the role of Central Luzon in national

development can never be left to chance. With the advancement
in communications and the close inter-connectivity of economies,
incidents in the outside world impact the poorest households in
far-flung barangays, who all have the human right to equal
Development entities like the
opportunities for progress.
Regional Development Council (RDC) III as the primary
coordinator and integrator of all development initiatives in the
region play a crucial role to balance all the varying interests on hand.
Against an accurate assessment of the current situation obtaining in the region, the Central LuzonRegional Development Plan (CL-RDP), 2011-2016 squarely addresses critical development
challenges that will push growth and spread its benefits to everyone. This has been the ardent
crusade of no less than our President Noynoy: growth and development while elevating the
economic conditions of the disadvantaged. The Government should have mechanisms for redistributing opportunities to the underprivileged.
The past six years have been relatively better-off but also challenging for the region. With a strong
Regional Development Council (RDC) we can continuously strive for improvement because the best
is on hand for Central Luzon.

OSCAR S. RODRIGUEZ
RDC III Chairman
Mayor, City of San Fernando, Pampanga

Foreword
From 2004-2009, Central Luzon maintained its niche as the third
largest contributor to national output. However, from a high of
8.64 percent in 2004, its annual share slid down to 8.1 percent
in 2009. With this as background, the stakeholders in the region
put their minds together and diagnosed the causes holding down
the region from soaring above its accustomed place in national
income generation given its vast potentials and the wide array of
opportunities that the special economic and free port zones offer.
The Central Luzon Regional Development Plan (CL-RDP), 20112016, resulted from the aforesaid multi-sectoral collaboration. Under the Plan the potentials of the
network of economic and free port zones shall be unleashed through infrastructure and skill upgrade
within the zones and host-Local Government Units (LGUs) so that the needed synergy for a higher
leap to growth may be realized. Through the process, technology upgrade and investment
diversification and expansion shall fortify the regions human and physical capital for a more
sustained growth.

The Plan as crafted epitomizes responsiveness, efficiency and straightforward analysis and
presentation. Costs from natural disasters are minimized and benefits from development optimized
by integrating Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA) in the analysis of
the Planning Environment, identification of Development Challenges and Strategy formulation.
Human Rights principles were likewise used. Labor is treated not only as one of the productive
inputs equated with land and capital but as human person, endowed with dignity, who must be
treated with utmost respect in public policies. Expectedly, employment generation and incomeenhancing strategies, legal and physical access to productive assets and basic social services
particularly of the farming communities assumed high importance in the Plan.

The report is organized following a one-page summary that presents the linkages of the proposed
solutions to the priority development problems.
A brief yet substantive introduction provides a background for the succeeding Development
Challenges. The more detailed report on the analysis of the Planning Environment is appended to
make the main document brief and uncluttered without excessive details.
The priority Programs and Projects were deduced from the Strategies. Thus, these are well-knit and
reflect their substantive contribution to higher and sustained growth.
On the whole the CL-RDP mirrors the oneness of the Region III stakeholders to pursue sustainable
and inclusive development.

REMIGIO A. MERCADO
NEDA III - Regional Director
RDC III Vice-Chairman

TABLEOFCONTENTS
Regional Development Council Resolution No. 03-01-2011
Message of President Benigno S. Aquino III
Message of NEDA Secretary Cayetano W. Paderanga Jr.
Message of RDC Chairman Oscar S. Rodriguez
Foreword of NEDA Regional Director Remigio A. Mercado

Chapter 1


Chapter 2


Chapter 3


Chapter 4


Chapter 5


Annex 1

Introduction

1 - 3

Development Challenges

4 - 22

Our Desired Future

23 - 35

Priority Programs and Projects

36 - 48

Monitoring Plan Implementation

49 - 50

The Planning Environment

51 - 84

ListofTables

Table1.

Table2.

Table3.

Table4.
Table5.
Table6.
Table7.
Table8.
Table9
Table10.
Table11.
Table12.
Table13.

CL-RDPIndicators

50

GRDP/GVAActualGrowthRatesvsPlanTargets,CentralLuzonRegion,2004- 55
2009

InflationRatebyMajorCommodityGroup,CentralLuzonRegion,2004-2009 56
HouseholdPopulation15YearsOldandOverby,EmploymentStatus:Central
Luzon:2006-2009

ProfileofLocalandOverseasFilipinoDomesticWorkers,

NumberofEmployedbyIndustryCentralLuzon:2008-2009

HumanDevelopmentIndexbyProvince:PhilippinesandCentralLuzon1994,
1997and2000

BasicandFunctionalLiteracyRates:CentralLuzon1989,1994,2003

NationalAchievementTestResults(%):CentralLuzon

VulnerableSectorsinCentralLuzon,2009

RoadDensity,PhilippinesandCentralLuzon,AsofEnd2008

ListofAirport,RegionIIIasofend2009

ExistingPowerPlantsinCentralLuzon































57
57
58
59
60
61
63
68
70
71

ListofFigures




Figure1.
Figure2.
Figure3.
Figure4.
Figure5.
Figure6.
Figure7.
Figure8
Figure9.

20

ExistingFloodForecasting&WarningSystem(FFWS) 

26

EnhancedWCorridor

51

SatelliteimageofCentralLuzon

52

IncidenceofPoorPopulation(%):CentralLuzon

53

GRDP:GrowthRates(%)CentralLuzon,1985=100

66

RoadDevelopmentinAurora,2009 

66

SectionofManilaNorthRoadImprovement,2009

72

GovernanceandPolicyInfrastructureFramework

75

IRAIndependencyRatio,byregionYear2004to2007

Figure10 IRAIndependencyRatio,byprovinceYear2004to2007
Figure11.

76

77

CapitalFormationbudgetratio,byregionYear2004to2007

Figure12. CapitalFormationBudgetRatio,byprovince Year2004to2007

Figure13. RisktoProjectedRainfallChange

Figure14. RisktoTyphoons

Figure15. Impactsofglobalwarmingonsealevelrises

Figure16. HighRiskstoTyphoons

78
80
80
81
82

Chapter1:Introduction
To realize P-Noy's Social Contract with the People of Central Luzon (CL), the formulation of the
Regional Development Plan (RDP), 2011-2016 emphasized the production of a good document on
the regions direction and priorities for the next six years and the process to be observed to maximize
peoples participation. This is intended to ensure that the growth strategies will be realistic in
sustaining growth and relevant in making effective poverty reduction strategies in the region.
Substantive inputs from the Provinces and the Program/Project beneficiaries were drawn and made
part of the Plan.

I.

RegionalDevelopmentAgenda

The Central Luzon 20/20 Vision for 2025 and the Regional Development Agenda (RDA) served as
the basic framework in Plan preparation. As crafted, the Vision Statement in the RDA: Central
Luzon: A Sustainable
Sustainable and Caring Global Gateway through PublicPublic-PrivatePrivate-Partnership and Growth for
All provided the development directions of the RDP. The Regions 2025 Vision presupposes that
improving the quality of lives of the people of Central Luzon requires concerted efforts among all
stakeholders government (national and local), business sector and civil society in harnessing the
regions potentials for economic growth.
The following are the Basic Descriptors of the Vision Statement:
1.

A Sustainable and Caring Global Gateway.

Gateway To be sustainable, the share of the Central
Luzon in the Gross Domestic Product (GDP) as measured in its Gross Regional Domestic
Product (GRDP) cannot afford to experience a boom-bust cycle, much less a consistent
downward trend. From 9.5 percent in 1991-2000, the average share of Region III in the
GDP went down to 8.8 percent. Its GRDPs contribution to growth was on a consistent
decline, from 12.3 percent in 1981-1990 to 7.9 percent in 1991-2000, it dove further to
6.7 percent in 2001-2006. The RDP must identify the determinants and their interrelations
that slow down its growth and pull down Region IIIs share in the national output. It will
determine the most critical and ease them to boost performance and unleash the regions
potentials for the better. To sustain consistent output increase, measures to reduce the
adverse effects of disasters and enable the region to adapt to climate change shall be
consciously pursued.
On the other hand, a Caring Global Gateway means that the marginalized and the
vulnerable will be accorded access to adequate social protection and safety nets amidst the
opening of the region to world commerce because of the presence of the airport and
seaport facilities in the special economic and free port zones and their connectivity to the
regions improved road network system.

2.

PublicPublic-Private-Partnership (PPP) is the principal means to

Public-PrivatePrivate-Partnership.
Partnership
facilitate attainment of the Sustainable and Caring Global Gateway. The region shall
harness the benefits of the very high trust rating for P-Noy from all sectors of society
particularly the business community. Legislation is the primary instrument to exploit this
opportunity. However, the regions strong relationship and the synergy it developed with the
business community and civil society organizations shall be continuously adopted as a
cross-cutting strategy in the pursuit of regional growth.

Public-Private-Partnership shall be aggressively promoted in areas where the current fiscal

situation will not warrant national government funding support.
Investments in
infrastructures particularly transport and electric power shall be promoted as top priority for
the contractual arrangements.
3.

Growth for All.

All The directions that will guide and the interventions that will implement the
RDP must be crafted in such a manner that no one shall be left behind. While a high
private investment level is expected to boost opportunities for productive employment and
income growth, it does not however guarantee income equality among population groups.
Thus, specific interventions to address inequality of access to health, education and other
social services and to productive assets will form part of the Plans poverty reduction
strategies.
Gains from income growth, improved capital investments and poverty reduction programs
will all be negated unless governance concerns are addressed. Hence, measures to
address corruption, weak rule of law and public institutions and deficient policies shall take
a dominant position in the Plan.

II.

ScheduleofRDPPreparation

To enable local development planning efforts to catch up with the Medium-Term Philippine
Development Plan (MTPDP) preparation, a work schedule for the preparation of the RDP was
adopted and followed. This helped ensure that priority regional and local needs are reflected in the
national plan.

III.

PrioritySectoral/Sub-SectoralIssueMatrix

In addition to the consultations that were conducted with National Government Agencies
(NGAs) and the private sector partners to draw inputs to RDP preparation, a Priority Sectoral/SubSectoral Issue Matrix (P-SIM) was prepared, disseminated and consolidated by NEDA-3 to facilitate
input generation from various stakeholders (see attached Annex A). The P-SIM consisted of five
columns to be filled by development partners, as follows:
1. Sectoral/SubSectoral/Sub-Sectoral Issue/Concern.
Issue/Concern. Identifies the problem being addressed by the
agency as part of its legal mandate as shown by comparison of statistics/ benchmarking of
indicators, surveys, insights from in-depth case studies and analysis.
2. Brief Description of the Issue/Concern.
Issue/Concern. Discusses why the issue or concern is a problem to
include its determinants or factors that make up as causes. It may also include the location
where such problem is being observed or experienced.
3. Existing Agency Program or Project.
Project. The title of the Program or Project implemented by the
concerned agency to address the issue or concern.
4. Assessment of Effect or Impact.
Impact Effect refers to the rate to be given which in this case is in
a scale of Low, Medium or High depending on the benefits immediately generated for the
target beneficiaries such as number, areas covered, problems solved, other projects
enhanced, etc. Impact refers to the long-term change as evidenced by Outcome Indicators.
5. Implementation Problems.
Problems. Advances reasons why the pre-identified objectives of the
Program or Project have not been attained to include factors within and outside the control
of the implementing agency such as policy/legislation gaps.

IV.

ReportStructure

The main report of CL-RDP 2011-2016 consists of five chapters and several annexes. The
first chapter sets out the rationale, process and inputs generated in crafting the substantive content.
The second chapter summarizes the development issues and concerns and challenges that impinge
the socio-economic development of the region. It likewise introduces the possible implications of
these challenges and issues on the overall development pace while identifying key factors that can
facilitate the search for answers to the former.
The third chapter outlines the priority development directions through a discussion of the
horizontal linkages of the proposed major projects to the development objectives, strategies and
goals. The chapter opens up with a description of the preferred long term scenario for the region
followed by its implication or translation on the physical conditions through the long term spatial
strategy.
The fourth chapter translates the development objectives into more operational terms
through development programs and projects which shall be funded through the regular budgeting
process of the national government and its instrumentalities complemented by local government
financing.
The last chapter discusses the main implementation mechanisms including proposed
policies and procedures for investment prioritization and fund sourcing approaches. It also presents
a monitoring plan that provides the instruments and processes for information gathering processing
and decision-making.

Chapter2: DevelopmentChallenges
I.

Introduction

A diagnosis of the current situation of the population, economy, physical resources of CL and its
contribution to the national output has surfaced critical development challenges that constrained
the regions otherwise stronger potentials and more promising opportunities for faster growth.
Determinants of the constraints were identified through consultations with different
stakeholders. The detailed analysis of the planning environment is presented in Annex 1.

II. DevelopmentChallenges
A. High and Sustained Growth.
Growth. From 1993 to 2009, while Central Luzon maintained its
position as the number three largest contributor to the national output, its contribution was
notably on a consistent decline, from a high of 9.94 percent to a low of 8.1 percent.
Sustaining and increasing growth is crucially important as a challenge for the region in view
of the need for the national economy to be elevated to a higher growth plane to catch up with
its Southeast and East Asian neighbors.
B. Inclusive Growth
Growth as a key philosophy of the Philippine Development Plan (PDP) implies
Non-Discrimination which is a core principle of Human Rights. Non-discrimination denotes
equalization of social and economic forces so that those who are economically deprived may
at least be given opportunities to grow. For purposes of regional development planning and
policy reform, this means that those who are left behind must be given opportunities to be
drawn back to the development cycle by hauling them out of the financial difficulty. This
situation continually impairs and nullifies their capacity to contribute to long-term investment
intended to address disparity in infrastructures sought after by prospective investors and
accord easy access to basic social services and safeguards for the most at risks of having
their human rights violated amidst a tight local fiscal situation. A glaring challenge that faces
the regions development stakeholders to achieve inclusive growth is how to mainstream
the numerous indigenous peoples residing in the region, from the mountain areas of
Zambales, Aurora, Tarlac, Bulacan and Pampanga to the coasts of Zambales and Aurora. Our
rural agricultural and fishing families are also sectors that need to be considered in our
search for inclusive growth.
C. Improving IntraIntra- and InterInter-Regional Circulation and the land transportation access to the
east and west coasts of the region.
region In the midst of the accomplishments on transportation
infrastructures mentioned in Annex 1 there is still much work to be done. The region still
needs to pursue the implementation of capital investment projects strategic and critical to
stimulate, accelerate and sustain economic growth. Projects will address blockades along
national highways, roads and bridges that lead to major tourist destinations and
underdeveloped areas, flood control and drainage facilities that will mitigate flooding
including improvement of conflict-affected areas that promote development and resolve
peace and order problems.
The North Luzon Expressway (NLEX) has become the fastest link of the different industrial
estates in Bulacan for their supply and export requirements. The locators of the different
ecozones and industrial estates in Bataan, in addition to their own port facilities, may also
4

access the facilities in Clark and Subic through the Roman Highway. All other industrial
estates in Central Luzon may benefit once the key arterial road networks of the region are
improved, expanded, or rehabilitated.
The region supports the integrated management of the port facilities of Subic and airport in
Clark.
The region shall also endeavor to provide cheaper alternative land routes by improving the
levels of service of existing road sections running parallel to the North Luzon Expressway or
operation of railway services.
Physically connecting the eastern coasts and western coasts to the central corridor shall be
given emphasis. This includes opening and construction of new road sections along the
east-west corridor especially the Zambales-Tarlac and Nueva Ecija-Aurora connections.
Rehabilitation and improvement of existing road sections shall precede new construction
especially in areas adjacent to the central corridor. Rehabilitation and improvement of farmto-market roads and improvement of rural-urban road connections are expected to support
or catalyze productivity improvements in the agriculture sector through lesser production
costs.
In the same manner, improving the levels of services of inter-regional roads shall strengthen
the regions role of being a catchment area of raw materials where processing activities can
be economically located.
The regions port system shall be improved in accordance with the national government
priorities in Strong Republic Nautical Highway. An exemption shall be the conscious effort
to develop Dingalan as an International Port of Entry.
The establishment of a reliable network of airports between key tourist destinations
(Zambales and Aurora) with Clark Airport as regional hub shall be pursued.
It must be emphasized that the development of all the transport modes in the region shall be
consistently guided by the principle of seamlessness, all development interventions shall
consider inter-modal connections.
Eight percent or 181 of the total 2,169 kilometers of national roads in Region 3 remain
unpaved. Eight national bridges are still bailey or timber waiting to be made permanent. Of
the 534 cases of road traffic accidents reported in the region, 71 or a little more than 13
percent are attributed to road defects.
D. Strengthening MSMEs.
SMEs From a largely agri-based economy, Central Luzon has evolved over
the years to a region now anchored on services and industry. Influencing this transformation
is the conversion of the former U.S. military bases located in the region to Special Economic
Zones that had as a result inducing industrial and urban growth, and the regions proximity to
Metro Manila which had the region serving as spill over catchment to Metro Manilas
population. Subsequent to these developments, Central Luzon emerged as one of the
countrys major economic contributors, ranking third to NCR and CALABARZON in share to
the national output.
Central Luzon still has a lot of room to grow, what with existing available space in the
ecozones dotting the region and the ample supply of trainable labor. But as the same
5

condition may be said of other regions here and abroad, this makes it imperative for the
region to continuously endeavour to make itself a cut above the rest or enhance its
competitive edge. This calls for the region to rise up to the following challenges and address
these in order that it may continue to move forward and allow its people to enjoy the fruits of
a thriving economy. This includes strengthening the regions Micro, Small and Medium
Enterprises (MSMEs) which form bulk of the regions industry and service sectors base.
Difficulties in accessing financial assistance packages resulting from high interest rates and
stringent collateral requirements deter the rapid development of our MSMEs. This is
compounded by inadequacies in product design, development and packaging efforts, high
cost of doing business due to corruption and red tape, unreliable and expensive power
supply, and freight costs. The Information and Communication Technology (ICT) sub-sector
specifically is faced with inadequate supply of English-proficient manpower. Raising the level
of competitiveness of Central Luzon MSMEs especially on the quality of MSME products is a
must. Products must conform to international standards so that focus should not only be on
the domestic market but on penetrating the export market.
Other concerns hounding the MSMEs in the region are summarized below:
1. Lingering mismatch of labor supply and demand. The skills and level of proficiency of
available labor do not meet the standards or requirement of industries. Priority attention
should therefore be given to capability building or human resource development in these
areas especially for targeted industries.
2. Streamlining of business permit and licensing procedure and harmonizing documentary
requirements. One-Stop-Shops have been established in some areas and the processing
time for business permit and license (BPL) applications were cut substantially. The long
list of requirements for BPL applications remains, however, a concern among investors,
and therefore ways of improving this must continue to be an objective for facilitating
investment.
3. Promotion of backward and forward linkages of industries. This is to ensure
sustainability of industries in the production chain by linking the sources of inputs to
output markets. Such linkage at the moment is deemed needing more bridging effort or
assistance.
4. Reducing the cost of doing business to increase competitiveness of industries.
5. Harmonizing policies and defining incentives for promoting investments in the region.
LGUs do not have investment codes that would guide investment promotion and regulate
the conduct of business.
6. Consolidating or coordinating support services for business promotion. There is need to
coordinate assistance dispersed to the various agencies to facilitate provision of these
especially to industry winners and help push for their growth.
7. Entry of cheap imported goods erodes MSMEs business confidence level especially of
start-ups.
6

E. Incre
Increasing
asing Agriculture Productivity and Farming Family Incomes and Attaining Rice
Sufficiency and Food Security. As a major producer of food items especially rice, fishes,
fruits, vegetables, poultry and swine, Central Luzon enjoys a comparative advantage that is
further boosted by its proximity to large domestic markets and easy access to international
markets. Thus, it is incumbent on the region to produce these food items at higher
efficiencies and qualities to be able to compete both in the domestic market against
imported primary products and in the international market against local products and other
imported items.
In the domestic front, priority shall be accorded to untangling obstacles to make food cheap
and plentiful. This is especially true for rice whereby increasing production is imperative to
keep at pace with the increasing local demand due to increasing population amidst
decreasing production areas due to conversion to other uses.
The region faces declining productivity or below national average productivity for some of its
agricultural products where it plays a major role. Palay productivity is well above the national
average but is shown to decline from 2007. Where the threat of conversion is palpable, not
to mention low farm income, improving and sustaining a high level of productivity is critical to
ensuring food security and sufficiency, competitiveness of agricultural products and
enhancing farm income.
The extent of prime lands available for agricultural production is slowly decreasing due to
pressures of conversion into other higher value activities such as urban or industrial
development. The pressure is even higher in the central plains where the infrastructures are
developed. Landowners and farmer-beneficiaries alike succumb to tempting offers of real
estate developers to acquire the formers properties for conversion. The extent of laharaffected areas that remains unused almost 20 years after Mt. Pinatubos eruption adds to
the sectors dilemma.
The sector still reels from high cost of production and low farm prices because of poor or lack
of access to markets. The challenge thus is on reducing the cost of production, strengthening
farmers organizations and improving marketing efficiency and access, for farmers to get the
optimum possible return from their investment. Demand is still high for support
infrastructure to agriculture such as farm-to-market roads, post-harvest and storage facilities,
irrigation facilities, transportation, and food terminals. Among the needed post-harvest
facilities are dryers, warehouses, cold storages and world-class sanitary abattoirs.
Post-harvest practices and facilities continue to be inadequate contributing to high losses in
handling and processing. Although Central Luzon is the rice bowl of the country, there is still
widespread practice of sun-drying on concrete pavements and roads resulting in low quality
milled rice and spillage losses. For high value fruits and vegetables, the diversification
program has been constrained by the inability of packaging and handling technologies to
keep pace with market demands. Mangoes, for example, are still transported in traditional
bamboo or reed baskets (kaings) which result to in-transit damages like fruit skin bruising.
The Department of Science and Technology (DOST) has been very active in adapting
packaging technologies especially for mangoes but this has yet to receive popular support
because of the additional investment it requires.

With the exception of the swine industry, agriculture output is realized from the sale of raw
and primary products. This leaves the farmers vulnerable to depressed prices during surplus
production events (bumper harvests). A zero-waste approach to agriculture that involves
processing into secondary and final consumer products could provide alternative income
streams and provide off-farm employment opportunities.
The need to increase value-adding for agricultural products through processing and
upgrading from micro-level production to commercial scale has been felt for quite a time. The
latter is to seize opportunity for export and increasing income. For example, although Aurora
is a net palay exporter, milled rice is relatively more expensive since post harvest facilities
are wanting in the province. They have to buy milled rice from outside the province. The
mango producers of Zambales and Bataan easily fall prey to traders especially during
production gluts due to the absence of post-harvest processing activities in the area and the
non-availability of technology to lengthen mango shelf life. The same is true for the onion
growers in Nueva Ecija, who have limited access to storage facilities. Compounding the
problem of onion growers is smuggling and importation of onions at a time when Nueva Ecija
farmers are harvesting their onions, and unavailability of locally produced onion seeds.
Most farming families experience a dearth in sources of additional income generating
activities especially after planting. For coconut farmers in Aurora and mango producers of
Zambales and Bataan, onion growers of Nueva Ecija, rice farmers and fishpond operators of
Bulacan and Pampanga, the long idle periods between harvests can be used for other more
productive activities but they need technical, marketing and financial assistance.
Enhancing the quality of our agricultural products to meet export-quality standards remains a
standing challenge. The regions mango industry for instance requires packing houses and
Extended Water Treatment Facility which are needed for prolonging product shelf-life and
ensuring that products conform to phytosanitary standards as required for export products.
The opportunities offered by the international demand for higher value-added fishery
products have not been exploited by Central Luzons fish farmers. Most of them produce fish
to meet local demands yet fall prey to low farm gate prices especially during production gluts.
The profitability of going into production for the international market and other high-end
users was proven time and again by a very few producers. For instance, although the region
is a major producer of tilapia, the product is unable to meet the size requirements of hotels
and restaurants. Thus, the Philippines is a net importer of fish fillet although the quality and
taste of tilapia can easily surpass those of the imported fillets. Productivity improvements in
the fishery subsector may be achieved by extending assistance to our small and medium
fish-farmers in improving their production processes and increasing their access to
processing centers for their products to be globally competitive.
In contrast, the forestry subsector is hounded by low value adding activities among the major
players in the logging industry. There are very limited value-adding activities performed
within the region for logs harvested especially from the Sierra Madres. On the other hand,
our wood-based furniture industry has gained national and international acknowledgement
for superior craftsmanship. The latter, however, is being faced with problems on availability
of raw materials to sustain their production. In contrast, the big logging companies are
continuously harvesting logs and exporting (outside the region) lumber and other low valueadded products.

With globalization just around the corner, CLs agricultural production systems have yet to
reach efficiency levels that may be comparable to neighboring countries. Costs of production
per unit of output need to be competitive in order to sustain production and provide
livelihood to the rural households. Cheaper substitute imports can easily replace major
commodities and, therefore, threaten inefficient systems.
Through the identification and delineation of Strategic Agriculture and Fishery Development
Zones (SAFDZ), it was hoped that farmers shall be encouraged to shift to more globally
competitive crop production systems. Efforts by the Department of Agriculture (DA) through
the Bureau of Soils and Water Management (BSWM), crop suitability information have
become available for some years now. However, internal resources and constraints posed by
the devolution of the agricultural extension function limit its capabilities to make this
information readily and directly available to farmers. Information borne out of researches by
State Universities and Colleges (SUCs) and other research institutions in the region need to
reach and benefit the farmers.
The extensive land resources of Central Luzon that are highly suitable for high value crops
have yet to be fully harnessed. It is sad to note that farmers in the region stick to their timetested production systems. Only a select few (especially those who are within the radius of
influence of research centers) dare venture into new systems that recognize the regions
comparative advantages that can be used to respond to the demands of emerging domestic
and international markets. For example, the regions corn production is a measly 143,000
metric tons, way below the requirement of the poultry and livestock industry. Yet the Bureau
of Soils and Water Management (BSWM) shows that there are extensive areas in the region,
especially in the western and eastern parts, that are technically and financially viable for corn
production but are presently planted to other low value traditional crops.
The need to increase production areas for corn to support the regions livestock and poultry
industry cannot be overemphasized. Though the region is the center of swine and poultry
production and maintains a good concentration of feed mills, bulk of the corn requirement of
the said industries are imported from other regions and sources outside the country. This
situation had thus led these industries to suffer from high production cost.
Growing demand for small ruminants (goat and sheep) meat and other derivative products
has been noted. Though the Central Luzon State University(CLSUs) Small Ruminant Center
has developed and perfected technologies for the production of goat, supply has remain
limited and unable to meet expanding demand for goat meat.
Disease control is critical to the livestock and poultry sector in so much as the region
provides for a significant share of the countrys meat and poultry supply. DA reports the
region is now Foot-and-Mouth-Disease (FMD)-free but with vaccination. Despite this positive
development, the region continues to contend with other disease outbreaks. This hence calls
for efforts at intensifying disease control and ensuring that we meet and keep up to
standards, to sustain growth of the sector and the regions meat processing industry, as well
as expand our market reach.
Industrial and urban crawl is slowly eroding the areas for livestock and poultry production.
Sustaining the growth of these sectors and maintaining the position of the region as a major

producer hence requires that the industry is allotted adequate land and protected from
encroachment from human settlement and industries.
Pollution of our water bodies, deterioration of coastal and marine ecosystems and poor
management of fishing operations are threatening to undercut fish production. Rehabilitation
of the regions coastal and inland water bodies, pollution control and increased monitoring
and extension to promote better management are deemed therefore crucial and must be
given focus if the region were to see the sustainability of its fish industry.
With increasing variation in climate pattern and the regions high vulnerability to weather
disturbances, Research and Development (R&D) on Climate Change Adaptation (CCA) is
crucial to enabling the region cope with or mitigate the impact of climate change. This is
particularly important especially as the region shares the largest in the countrys staple and
therefore is critical in ensuring the stability of the countrys rice production.
Saline water intrusion in certain rice production areas in the region, such as in Pampanga,
Bulacan and Bataan, covering about seven thousand hectares is undermining rice farming
and productivity in these areas. The challenge is in converting these areas to alternative
productive uses. One alternative according to the Bureau of Fisheries and Aquatic Resources
(BFAR) is the conversion of these once productive rice lands to fishponds for growing saline
tilapia.
Small volumes of production of each of so many farmers limit their access to external
markets even with price information provided by the DA. Economies of scale and the
perishable nature of agricultural commodities dictate a need to consolidate them at the least
time. Facilitating the consolidation through common service facilities and a more efficient
market exchange system shall contribute to improved productivities. One way to effect
consolidation is strengthening farmers organizations and encouraging farmers to work

collectively to seize opportunities for reducing production cost and increasing access
to markets. Backward and forward linkages are better promoted when farmers are
organized and work collectively. Integration increases productivity and maximizes
return to investment in agricultural production. Farm diversification cushions small
farmers from price fluctuations and economic shocks particularly those brought
about by extreme weather and temperature changes.
Other issues that have been repeatedly raised as causes of agricultural underdevelopment of
Central Luzon include: (1) poor management of water resources; (2) poor access to
technologies; (3) high transport costs; (4) supply inadequacies of certified and good seeds;
and, (5) unexplored alternative products and opportunities.
F. Attracting more Tourists. Central Luzon enjoys certain advantages that present opportunities
for developing tourism. For one, Region III is the gateway to Northern Luzon, a more popular
tourist destination. As a gateway, people pass through the region, giving way to people-region
encounter and the opportunity for raising awareness and interest on what the region has to
offer. The natural or geographic make-up of the region, characterized by a mix of coastal,
lowland and upland, favors diversity of attractions and, therefore, a variety of tourism
markets. The regions proximity to Metro Manila is also a plus factor as it offers a convenient
reprieve for a huge local market seeking short-duration rest and recreation. Add to these

10

pluses are the regions infrastructure such as airports, sea port, and road network. With
these existing, the region has a lot more opportunity to attract or invite tourists.
Yet, the same advantages would not matter much if there are no attractions of the right
quality and quantity to speak of. The region, in this case, would continue to be just a stopover or a jump-off point to other destinations. Such appears to be the case as the region,
though showing uptrend in visitor arrival, still lags in the list of favored destinations in the
country. This means that the region is unable to capture the potential market size or value
that the said elements mentioned for attracting tourists could generate.
Several factors, according to industry stakeholders, are locking up the opportunities that
could push industry growth further up. The challenges as listed below range from institutional
gaps, underinvestment in tourism, weak marketing, to lack of a sense of tourism culture and
synergy in tourism promotion and development:
1. Fragmented or disjointed tourism promotion, activities and attractions. Theres no
program that would tie up the various destinations or attractions. Efforts at attracting
visitors/tourists are localized or location or LGU- specific. This tends to limit the choices
of tourists in terms of places to visit or attractions to enjoy.
2. Lack of packaged tourism attractions resulting in tourism operators focusing on
outbound market promotion.
3. Preserving integrity of the environment or environmental quality not integral to tourism
development. Efforts at tourism promotion weakly involve enhancing the adjoining or
surrounding environment. Again, focus is on attraction-specific development than on
holistic management.
4. Increasing capacity to meet demand for large conventions. The facilities in the region,
even at Clark and Subic, prevent the region from accommodating large conventions,
which is showing good demand.
5. Outside of Clark and Subic, in recent years, investments in beach resorts have increased
along the China Sea coastline (from Bataan to Iba) and in the Pacific coastline (Dingalan,
Baler and Dinalungan of Aurora) but a considerable number of the facilities that have
been put up are below tourist standards. The owners have expressed their need for
financial assistance packages to improve their facilities. Tourist spots are either
inadequate or in poor condition. The latter manages to attract only the local market.
6. Inadequate transport system or services designed for tourists and high transport cost.
Where there are vehicles, transport fares are not standard and are exorbitant.
7. Lack of a definitive market position or brand with which to identify Central Luzon
tourism. Industry stakeholders posit that it would help the region better promote itself if it
carries a brand that would project a good image of the region.
8. Limited air seat capacity of international flights at the Diosdado Macapagal International
Airport (DMIA).
11

9. The region, Clark in particular, as just a jump off point, indicates the need to enhance
the overall look and impression of Central Luzon that will elevate it from being just a
gateway to an inviting tourism destination.
10. Need for visitor information and assistance centers in tourism areas to help guide/assist
tourists in moving around the region.
11. Need to enhance quality of attractions and security in destinations.
12. Inculcating the culture of tourism that would have all stakeholders participating and
contributing to promoting tourism in the region.
13. Weak local government capacity for tourism promotion and development thus rendering
local tourism potentials largely untapped.
G. In
Increasing
creasing Housing Units. The Housing and Urban Development Coordinating Council
(HUDCC) estimated that almost half a million (461,368) housing units are needed to fill in
the cumulated shortage of decent housing in the region from 2005-2010. The problem is
made more urgent by the location of a sizeable chunk of these families along easement of
river banks and other waterways and on the mountain slopes constantly at risk of being
wiped away by flood water and buried by massive soil downpour from landslides.
H. The assessment of the Governance, Policy and Institution highlighted the following
development challenges that hold off the capacity of the region to move and accelerate
growth and translate beneficiaries of social services and programs as active participants of
regional development: 1) Lack of Growth-Stimulating and Efficient Operating Activities; 2)
Lack of Substantive Insights from the Mandated Review of the Local Government Code
(LGC); 3)Weak Support of Regional Line Agencies (RLAs) to RDC-Identified Priority PPAs; 4)
Lack of Formal Mechanism at the Regional Level on How Financially Incapable LGUs can
address resource constraints in the implementation of their Priority Programs/Projects; 5)
Absence of Administrative Sanctions for non-compliance with R.A. 9184; 6) Small Value
attached to the Code of Ethical Standards for Government Employees; 7) Lack of a common
regional standard for business permit processing; and, 8) Lack of unified regional crime
prevention.
1. Lack of Growth-Stimulating and Efficient Operating Activities. It may be gleaned from the
foregoing that although degrees vary, areas with high Internal Revenue Allotment (IRA)
Independency ratios have relatively higher budget that they can mobilize for capital
investment projects. For Region III, to have more funds available for capital formation
and create longer reach for the vulnerable, a review of the current operating processes
must be conducted to make regional operations more efficient.
An interface of IRA Independency Ratios and investible funds for capital formation will
indicate that while Regions CAR, 2 and 7 had lower IRA Independency Ratios in 2004,
they got higher percentage ratios for their budget available for capital investment. In
2005, Bicol Region was added to the other three regions which while having lower IRA
Independency Ratios had higher investible fund for capital formation. Eight other regions
followed suit in 2006. This number was reduced to five in 2007.

12

Using Region III as benchmark, the number of regions having higher IRA Independency
Ratios namely Regions I, III, NCR and IV did not change. This means that the gap
between IRA and Own-Source-Revenues (OSRs) is so wide that in four years their number
and composition did not change altogether. Despite this phenomenon, the number of
provinces having financial capacity to invest in capital formation changed. This means
that as far as having more funds for capital investment, improved operational efficiency
highly matters. The inability to come out from IRA dependence is noticeable also across
the region. Using Region III IRA Independency Ratio of 32.49 percent as reference, five
out of the seven provinces of Central Luzon fell short of the standard mark for the period
2004-2007. Thus, if assistance is not forthcoming as in the case of Auroras relatively
inability to fund its capital investment projects, the general observation nationwide and
regionwide for regions and provinces to graduate from IRA dependency appeared even
more difficult.
Hence, bail-out measures need to be adopted and implemented in this regard. To effect,
sustain and accelerate growth, economic activities must be deliberately pursued to
ensure not only efficiency in operations but also higher investments for capital formation.
2. Lack of Substantive Insights from the Mandated Review of the LGC. Entitlement to IRA
and their amounts are provided for under the LGC. Their entitlement cannot be
challenged even by executive fiat because by law their releases are deemed automatic.
But while the share of the LGUs in the national wealth is facilitative of local development
efforts in this respect, its relevance must be subject of continuing review.
Used as criteria in IRA determination under the LGC are population level, land area and
equal sharing. The formula falls short of considering other factors which could serve as
vital inputs to making IRA responsive and relevant to changing local development
requirements after twenty years from implementation of LGC such as the impact of the
unique geographic characteristics of an area, the dynamics of the population primarily
their attitude and capacity to change, the values of local government officials such as
their appreciation of geographically inter-locking growth and development concerns
which could have been vital inputs to the mandatory review of the LGC. Section 521 of
the LGC clearly provides for its mandatory review every five years as minimum.
3. Weak Support of Regional Line Agencies (RLAs) to RDC-Identified Priority PPAs. The
Regional Development Council (RDC) is supposedly the forum whereby the Regional
Development Plan (RDP) is coordinated, harmonized, synchronized and integrated.
Ideally, the RDP must be a reflection of various interests, the implementation process of
which a full-proof measure at ensuring the realization by the claimholders of their
entitlements to public goods, resources and institutions necessary for a life of dignity.
Past
experiences
and
the
prevailing
practice
at
RDC III are symptomatic not only of the lack of transparency as to how region-based
priority programs and projects, their identification and targeting are being undertaken at
the national level and their ultimate translation into agency budgets. The continuing
lack of transparency in the system is constantly subjecting the most vulnerable persons
and geographic areas to being left out. This is not in harmony with the right to
information principle being espoused by the P-Noy Administration. It is not consistent
with the non-discriminatory quality of the inclusive growth of the MTPDP.

13

Anecdotal incidents point to LGU priority programs and projects being passed on to
legislators for chance funding. After almost two decades of decentralization, regional
counterparts of national government agencies continue to function more as extensions
of their central offices and less as representatives of LGUs trying to reach out to central
government through the RDC for budgetary support.
Worse, craving for budgetary support from elsewhere has actually been perpetuating a
history of institutional dysfunctionalism and myopia towards local governance concerns
and an attitude of indifference towards the more organized and systemic development
planning. In view of the lack of attribution on the difference that development planning
could make on peoples lives, what should have been an effective window for making
people and communities realize as a critical factor for effective local leadership is
continuously being wasted and rendered meaningless. A clear opportunity for making
one vital criterion in the selection of good local leaders is being lost.
4. Lack of Formal Mechanism at the Regional Level on How Financially Incapable LGUs
can address resource constraints in the implementation of their Priority
Programs/Projects. Totally leaving the impediments to growth to the relatively financially
incapable LGUs and those with relatively poor geographic conditions starts with nonrecognition of their incapacity to fend for themselves. Continuing disregard of this
problem practically leaves them at the mercy of national government agencies and
legislators for budgetary support.
Loans are not a viable option not only because of the stringent requirements for
eligibility but also the high social costs should they become unable to repay. Sovereign
guarantees are an indispensable requirement for Official Development Assistance
(ODA). LGUs that will likely benefit from these guarantees are those financially capable.
Build-Operate-Transfer (BOT) is likewise not a viable option because private investors
would naturally look for good infrastructure, reliable market, and predictable tax policies
the implementation of which would again have irreversible cost to local constituencies.
Past attempts at vertical haul-out has been questioned because of the perceived
potential risks from serving as disincentive to better economic performers. The high
cost to poor economic performers is manifested in slow growth and increasing incidence
of poverty, which undoubtedly has wide-ranging implications on the country as a whole.
5. Absence of Administrative Sanctions for non-compliance with R.A. 9184 Government
Procurement Return Act. In addition to the reported collusion in the qualification of
winning bidders, which by its nature is hard if not impossible to prove, anecdotal
incidents of leakages in the procurement of supplies, contractors and consultants time
and again surface. Transparent processes abound in the law. However, noncompliance therewith entails no administrative sanctions to parties to the transactions,
hence better judgment would be to just ignore and be beyond its scope.
6. Small Value attached to the Code of Ethical Standards for Government Employees.
Republic Act No. 6713 provides for the obligation of every permanent employee of
government to submit his/her Statement of Assets, Liabilities and Net Worth (SALN)
every year. It is an efficient way of noting wide variations in Net Worth of those working
in government. Unexplained disproportionate increases in Net Worth are good subjects
of criminal investigation. Accomplishing SALNS has ceased being a solemn and formal
duty attached to the public office. Its value sometimes is reduced to a mechanical act
14

subject for experts to work on ingeniously for the purpose of evading possible
investigation.
While accusations at manipulating SALN would subject the accuser to stigma and
social humiliation, there is no body or entity in the region to whom to go to for recourse
should reports at remedying the numbers being placed at the SALN are known.
Although the prevailing rule is that the burden of proof lies on the government officials
who accomplish and execute the SALN, the opposite appears to be what is happening.
This norm leaves those guilty of wrong doing literally untouched. This continuing
mockery of the Human Rights Principle of Rule of Law is still prevalent despite the
enactment of a related law, Republic Act No. 1379 or the Law on Forfeiture of Ill-Gotten
Wealth.
7. Lack of a common regional standard for business permit processing. The fiscal
autonomy accorded to LGUs is manifested even in areas where uniformity should be
observed if the region is to be promoted as a common investor destination area.
Variations in business processing caused by the dichotomized performance of the
respective mandates of LGUs and NGAs are observed at the local level.
8. Lack of unified regional crime prevention. Crime statistics of the region are suggestive
of the wide differences as to how Local Chief Executives (LCEs) in Central Luzon
address peace and order, and security concerns. The differences of appreciation and
the relative values attached to peace and security as a factor in investment promotion
and development by LCEs continue to pose as a challenge to the region. The nature of
linkage and coordination between the different national law-enforcement agencies
such as the Philippine National Police (PNP), Armed Forces of the Philippines (AFP),
and the National Bureau of Investigation (NBI) and the LGUs impacts on the real nature
of this development challenge.
I. Complementation of Ecozones and MSMEs for Investment Expansion and Job Creation.
The region is host to an extensive network of special economic zones and Freeport areas yet
large tracts of lands within the proclaimed areas remain unoccupied and unproductive. The
marching challenge is how to make these employment generators live up to their
expectations of being major attractions to investments and job creation. As of 2009, there
are 354,000 jobless persons in Central Luzon. Despite the growing importance of
remittances from Overseas Filipino Workers (OFWs) a size percentage of whom come from
Region III, owing to the negative non-economic externalities that overseas employment
brings to the individual household, focus shall be given to domestic employment.
Constituting the bulk of those domestically employed at almost 60 percent, the Service
Sector is expected to play crucial role. Comparing 2008 and 2009, except for Electricity, Gas
and Water Supply, and Construction, the Service Sector considerably led the increase in the
number of employed persons. MSMEs and the Economic and Freeport Zones must work in
tandem for the domestic employment in-filling. This would require integration and
complementation of Economic and Freeport Zones and local MSMEs for skills re-tooling,
technology upgrading and investment expansion and diversification.
J. Stable Investment Showing in the Economic and Freeport Zones. While continuing, the
dwindling share and erratic behavior of investment inflows within the Subic and the Clark
Special Economic and Freeport Zones are making hard or slowing down the development of
15

the zones into logistics and transshipment hub. This suggests that competition of logistic and
transshipment service facilities around the globe are continually posing stiff competition
coupled with the complete recovery that the world still needs to go through after the
setbacks it suffered from the financial crunch it experienced more than two years ago.
K. Producing Globally Competitive Human Resources and Achieving the Regions Millennium
Development Goals. Realizing Central Luzons Millennium Development Goals (MDGs) on
education and environmental sustainability by 2015 is a continuing challenge since it is
forecast that the targets for universal primary education especially in the elementary
education completion rates and environmental sustainability target indicators for Central
Luzon may be difficult to attain.
The development of a globally competitive human resource base requires preparing and
sustaining the fitness of the economically productive population. Such should be founded on
improved basic education, improved access to health services, world-oriented higher
education and ensuring that their mental baggage is minimal especially those relating to
their dependents.
Basic education is continuously hounded by low enrolment of school age population and low
performance of students in achievement tests. About 90 out of 100 children 6-11 years old
and 66 out of 100 children 12-15 years old were enrolled in government elementary and
secondary schools respectively. This is compounded by the weak holding power of schools
as about 73 out of 100 pupils and 61 out of 100 students completed elementary and
secondary levels respectively in SY 2008-2009. The low performance of students in
achievement tests is an offshoot of inadequate classrooms with the attendant facilities like
desks and tables, computers which are absent in almost all schools, shortage of teachers
and textbooks and poor preparation of teacher-graduates. For SY 2010-2011, a total of
1,435 classrooms in the elementary level and 4,190 in the secondary are needed to meet
the standard ratio of one classroom for every 45 students. The present classroom student
ratio reached as high as 1:166 in one of the elementary schools and 1:293 in one of the
secondary schools. Attendant problems are limited school site and ownership problems that
are required in the provision of classrooms.
Textbook to student ratio ranging from 1:2 to 1:4 in the elementary level and 1:2 to 1:5 at
the secondary level was far from ideal. Teacher to student ratio was below the standard
reaching as low as 1:405
in one of the elementary schools and 1:368 in one of the
secondary schools. The requirement for additional teachers number 692 at the elementary
level and 1,461 at the secondary level for SY 2010-2011. Increasing cost of educationrelated expenses, lack of personal interest and inability to cope with schoolwork are said to
be the main causes of children not attending school or dropping-out of school.
For higher education, the persistent mismatch of school curriculum with the requirements of
industry particularly in Information Technology, Business and Medicine is continually causing
the production of potential unemployed. Graduates who fail to meet labor market placement
standards because of the mismatch symptomatic of a continuing wastage in precious
investment resources and results to foregone income from being unproductive.
The overall health status of the population may be gleaned from some basic health statistics
such as infant deaths, prevalence of malnutrition and incidence of water-borne and
preventable diseases. A total of seven out of 1,000 live births died before reaching the first

16

year of life in 2003. Moreover, there were still 2,626 births (1.49 %) that were attended by
untrained hilots in 2000.
About 10.71 percent of total births or 18,831 had weights below the standard of 2.5 kilos.
About 10.95 percent of children 0-5 years old had weights below the normal range
(underweight) and 3.24 percent had weights above the normal range (overweight). This is
the most important stage in the development of children and interventions along this are
imperative. The above situation was worse among school children where almost one-fifth
(19.69 %) of them were underweight. The spatial distribution of malnutrition among preschool children by municipality indicates that the problem is more pronounced in the eastern
and western parts of the region.
Water borne and preventable disease patterns such as diarrhea afflicted 85,477 persons or
990 per 100,000 population and has been the second leading cause of morbidity for years.
This is due to the accessibility of potable water to only 87.27 percent of households and
sanitary toilet facilities to 86.37 percent. Fully immunized children accounted for only 85
percent of all infants.
The continuing violation of the Ecological Solid Wastes Management Act of 2003 leads to air
pollution, water pollution and the clogging of local canals aggravating the flooding problem
and its attendant social concerns especially in the urban area.
L. Optimizing Benefits from Mineral Resources. The Philippines is believed to be mineral-rich
with an estimated potential mining wealth of US$840 billion. Reports have it that the country
ranks among the top ten countries of the world in terms of gold, copper, nickel and chromite.
Thus said, the government is driving efforts to push for the development of the countrys
mineral resources to tap this vast potential wealth and gain as much as it could in terms of
investments and revenues to add to resources necessary for the countrys development.
Yet the value of mining is not only in its direct investments and revenues but also in its
indirect economic spin off. Mining is said to have a multiplier effect on upstream and
downstream industries, which when put together is estimated to have a potential valueadded of P300 billion annually.
Central Luzon is endowed with both metallic and non-metallic mineral resources that when
tapped in accordance with the provisions of the countrys mining laws could bring about
economic growth. Mining, however, does not only impact the national economy but lends
also to local development as the laws provide for the sharing of the gains from the economic
activity with the host communities , as it also promotes local employment.
To jumpstart investments in the industry, the government identified priority mineral
development and exploration projects of which three are in Central Luzon. The latter are
Acoje PGE Nickel Project in Sta. Cruz, Candelaria, Zambales, Akle Cement Project in San
Ildefonso, Bulacan, and Sta. Cruz Nickel Project also in Sta. Cruz, Zambales. In addition to
these three projects, 36 Mineral Production Sharing Agreement (MPSAs) and 15 industrial
permits have also been approved and registered in the region.
While it is widely recognized that the development of the industry will create opportunities
including jobs, transfer of technology and skills, concerns on environmental damage,
benefits not reaching the poor and destruction of aesthetic attractions in mined areas deter
full-swing development. Already mining issues involving institutional jurisdiction, process
17

flaws and violation of environmental regulations are felt around the region, and these it must
address if mining were to be sustained as a viable industry and for the full benefit of mining
to redound to the regions development. The region must ensure that as much as the
potential contribution of mining to the regions economy is significant, it shall nonetheless
pose no cost to life and the environment.
The following specific issues and concerns have been identified by the Mines and Geosciences Bureau (MGB) and other industry stakeholders as besetting the sector and
constraining or threatening to undermine its growth:
1. Conflict in the issuance of small scale mining permits (SSMP) of LGUs that include:
a. issuance of SSMP within Mineral Reservation areas, which is under the
jurisdiction of Department of Environment and Natural Resources (DENR)MGB, protected areas, Community-Based Forest Management (CBFM) areas
and other forest lands without securing the necessary permit from the DENR
b. issuance of SSMP within existing nationally approved mining rights that have
resulted in overlapping claims and therefore conflict between large-scale
and small-scale permitees
c. issuance of SSMP without the proper Provincial Mining Regulatory Board
(PMRB) review and endorsement
d. issuance of permits that are not in accordance with prescribed mining
rights: 30-day special mining rights or one year permit to quarry
e. issuance of SSMP without the appropriate Environmental Compliance
Certificate (ECC) issued by the DENR-Environmental Management Bureau
(EMB) and Environmental and Rehabilitation Program as well Social
Development and Management Program (SDMP)
2. Issuance of ECC by the LGU
3. Allowing the transport of mineral ores without the appropriate ore transport permit
(OTP) or issuance of the OTP beyond the maximum allowable volume tonnage limit
4. Use of heavy equipment in SSMP operations, which is not only contrary to law but may
be adverse to the environment
5. Collection of inappropriate taxes and fees (e.g. environmental tax, scholarship fees,
regulatory fees, extraction fees)
6. Non-payment of national taxes particularly excise tax and royalty payments to
indigenous peoples
RA 7942 Philippine Mining Act of 1995 is clear on the pursuit of responsible and
sustainable mining as an avenue for attaining sustainable economic development. But if the
industrys stakeholders do not so much as to comply or remain true to their tasks as
18

provided, then mining would continue to be seen as destructive to humans and the
environment rather than as a medium for economic growth. The main challenge is in
harmonizing the functions of the concerned national authorities and that of the LGUs even as
they play distinct roles. How the stakeholders coordinate may be the key to untangling the
shackles that hold down rather than enable the region to enjoy the maximum benefit from
mining.
M. Climate Change and Disaster Risks Management remain a big challenge for the sustainable
economic development of Central Luzon. The large impacts of natural disasters are not
only related to the geography of the country and its high exposure to natural hazards, but
also to its vulnerability, which is closely linked to poverty and environmental management.
In urban areas, poverty drives many poor families to live in high-risk areas. In the rural areas,
disasters throw poor families back into poverty who are forced to rely on coping mechanisms
that reduce their long-term chances for improving their lives.
The risks posed by global climate change will severely affect key pillars of socio-economic
development that include natural resources, agriculture, infrastructure, water resources and
human health. While there is uncertainty on the likely conditions and changes in some
climate variables resulting from global warming, there are predictors of possible climate
change impacts in the country. Amidst the dearth of prediction models that reduce
uncertainties for climate change impacts at the sub-national and sub-regional levels, it is
certain that surface temperature is rising and more warm days and lesser cool ones have
been recorded. These temperature variations have already increased the risks to the country
and local level socio-economic development.
Although uncertainties continue to cloud the possible impacts of climate change at the local
levels, it is certain that increases in average temperatures that result in natural disasters are
already taking their toll on the socio-economic development of Central Luzon. This is due not
only to the natural hazards to which the region is exposed but also because of its
vulnerabilities that are exacerbated by poverty and environmental degradation. The most
likely to be affected sector of the economy is the agriculture sector upon which a
considerable number of the regions poor depend for their livelihood.
Being in the central plains of Luzon Island with three extensive river basins (Pampanga River,
Agno River and Angat River) and having low-lying urban and economic activity centers, the
regions fundamental priority is to ensure that past and future socio-economic investments
shall not be wiped out in a wink of an eye due to the occurrences of natural hazards. The
urgency of more effective disaster risk management is further emphasized by the
occurrences of climate change indications in recent months and years.
The outdated disaster management policy framework of the Philippines has recently been
addressed with the enactment of the National Disaster Risk Reduction and Management
Law (Republic Act No. 10121). The law emphasizes the need to understand the
development-disaster nexus from local to national government and even within the private
sector and the inclusion of disaster risk management issues in development financing
decisions. This requires strengthening of capabilities of decision-makers in incorporating
climate-change issues in public investment decisions. Aside from physical interventions to
minimize risks to natural hazards such as flood control structures and drainage works, there
is an urgency of improving disaster forecasting and early detection capacities as prerequisites to disaster preparedness.

19

Related to disaster preparedness capacities are capacities of LGUs to respond to emergency

requirements. These include stockpiling of ready-to-eat and easy-to-open stuff and basic
necessities of victims of natural disasters such as floods, landslides and mudflows.
Most LGUs need to be capacitated on disaster risk management and on improving disaster
risk reduction considerations in their respective Comprehensive Land Use Plans (CLUPs).
However, national government technical agencies also need to step up their database on
natural hazards threatening specific areas in the region and make these available to
planners and decision makers for them to arrive at informed decisions.
Typhoons, earthquakes, volcanic eruptions and unusual climatic occurrences pose threats
and hazards to humans, infrastructures, properties and economic activities. These raise the
cost of development or draw funds and investments away from development.
An average of 20 typhoons visits the country each year. About 15 of these affect Central
Luzon. Typhoons combine with monsoons discharge a high rate of precipitation in the
region. And because many of the regions areas are low-lying (e.g. Pampanga Delta, Poponto
and Central Tarlac), flooding usually accompanies typhoons and monsoons. The two most
extensive river basin areas that are usually affected by flooding are the Agno River Basin and
the Pampanga Delta shown in Figure 1. The DPWH has put in place flood forecasting and
early warning systems in these two areas. The national government has likewise invested in
programs and projects to alleviate the flooding problem in these areas. Local governments
(such as Tarlac and San Fernando Cities) have also invested in improving the drainage
systems in their respective urban areas.

Figure 1

20

Although much has been spent in infrastructures and other engineering interventions,
unusual rainfall events still submerge extensive areas in the region. Tarlac, Nueva Ecija,
Bulacan and Pampanga are usually worst affected. In the case of the Pampanga Delta area,
the implementation of Phase II of the Pampanga River Irrigation and Flood Control Project did
not push through due to some social acceptability issues. The river systems in the
Pampanga River Network experienced decreases in capacities due to siltation and lahar
deposition. Several Mt. Pinatubo rehabilitation projects were implemented to increase the
conveyance capacities of these rivers. However, the magnitude and extent of the lahar
affected areas and the limited resources of government have left some areas to depend on
reactive solutions to the flooding problems.
The most controversial is the Pampanga Delta Flood Control Project. Phase I was fully
completed in 2002 after two loan extensions and 11 years of implementation. About 1.5
kilometers was deleted from the original project design not only because of price escalation
but more especially due to strong opposition from the non-government organizations (NGOs)
and families to be displaced in Barangay Candelaria, Macabebe, Pampanga up to Barangay
Meyto, Calumpit Bulacan. Implementation of Phase II may not proceed unless consensus
among stakeholders is realized. Relocation has become a very sensitive issue that local
politicians have either shied away or used the controversy to pursue their political ends.
Another major contributor to flooding in some areas in the region is the discharge of
unusually high volumes of impounded surface run-off in the regions hydroelectric and
irrigation dams (Angat and Pantabangan). Operators of these two dams are forced to release
water since the dam capacities have decreased due to siltation and the high rates of run-off
accumulation. These have been blamed on the denudation of their respective watersheds.
Indeed, the forest cover in several critical watersheds throughout the region diminished
through time, blamed primarily on illegal logging, kaingin and encroachment. It was also
determined that limited and overlapping mandates in the management of forest resources
(watersheds included) weaken the implementation of otherwise resource conservation
programs in these areas.
N. Ensuring Sustainable Groundwater Yields and Balancing Competing Demands among
industries, domestic and agricultural uses is a challenge that needs to be addressed
considering that water is an essential commodity for all these three uses. This would
necessitate identifying and protecting aquifer recharge areas, protection of existing
proclaimed critical watersheds and identification of new critical watersheds for protection. A
related challenge is how to mobilize multi-sector support for this activity.
O. Environmental Protection and Waste Management The environment and the natural
resources around us tell so much of the life we live. They form the core of what determine
and shape human survival and human development.
Air, water and land provide the basics of what humans need to survive. Their availability
ensures that we live and fulfill our human task. But to live and enjoy life, man needs to have
these basics in quality and quantity that would allow for sustainable living. To have them
differently would be to limit life and limit living it meaningfully and to the fullest.
The challenge remains for Central Luzon to protect resources that are presently in good state
or from further degradation; to rehabilitate and restore those that can still be redeemed and

21

be of productive use; and to enhance the quality of its environment to levels beneficial to
people and the economy.
Attention is needed in the following environmental responses:

Maintaining and preserving the regions protected areas and biodiversity;

Protecting the regions forest lands and watersheds from degradation;
Reforestation and rehabilitation of degraded upland and mangrove areas;
Rehabilitation and restoration of Manila Bay and the regions other coastal and
marine resources;
Urban greening and sanitation;
Regular air and water quality monitoring;
Waste water treatment and solid and liquid waste disposal management.

22

Chapter3:OurDesiredFuture
I.

Introduction

The chapter describes the future desired physical, socio-economic and institutional conditions that
shall prevail in Central Luzon in the long run. It summarizes the aspirations and dreams of the
people as gathered from existing planning documents and personal accounts superimposed with an
appreciation of the regions intrinsic features and characteristics. The Regions vision statement
presented in the succeeding section has been deliberately made simple to make it easily understood
and more effective in rallying stakeholders towards a common future.
In summary, Central Luzons development directions and priority interventions may be seen in the
chart next page.

23

DEVELOPMENT DIRECTIONS
VISION

GOALS
High, Sustained and
Inclusive Growth

Central
Luzon: A
Sustainable

and Caring
Global
Gateway
through
PublicPublic
Partnership

and
Growth for
All

DEVELOPMENT INTERVENTIONS

OBJECTIVES
High GRDP per capita
High Employment and Family Income Level
Equality in Income Distribution and Poverty
Reduction

Globally Competitive,
Progressive and
Resilient Citizenry

Minimized Natural Disaster Casualties and

Economic Losses
Cheap and Plentiful Food
Improved Access to Health Services
World- Oriented HEIs
Improved Basic Education Achievement Rates

World Class
passenger mobility
and cargo distribution
network

Highly Employable Technical and Voc. Skills

Improved Land Transport Access from Urban
Core to East and West Coasts
Increased Level of Services of Strategic Roads
and North- South Links

STRATEGIES
MSME- Focused Regional
Investment and Employment Code
Efficient Financial Intermediation
for MSMEs
Population Management
Mainstreamed DRR in Local
Development Planning/ Land Use
Planning and Governance
National Budget Support to Regionally Prioritized Tourist Destinations

LGU Capital- Forming Capability

PPP as Preferred Mode of Funding
Tourism , Infrastructures and Value
Adding Process Technology

Integrated Land, Air, and Sea Transport Modes

Sustainable Land
Using Activities

Socially Responsible
Property Rights

Effective, Responsive
and Transparent
Governance

Improved Profitability and Sustainability of MSMEs

Developed Clark Subic Regional Tourism Hub
Green Upland Area

Clean Coastal Zone

Healthy Urban Area

Environment Friendly Mining

Productive LaharUpgraded Tourism

Covered Areas
Establishments
Increased Rural
Security Over Property
Farmer and Fisher
Rights
Folk Income
Accountable government personnel
performance tracking
Transparent public
Greater private
finance
sector participation

Multi-stream and integrated Delivery of

Support Services to Farmers and Farming
Communities
Modified Property Ownership as Means to
Boost Agricultural Production Efficiency and
Productivity
Seamless Business Permit Processing
Public Access to Production Processes and
Factor Product Market Interaction
Focused and Targeted Peace and Security as
Banner Program in Regional Investment /
Tourism Promotions
Access to Product Design, Packaging and
Handling Technologies for MSMEs
Equal Access to Product Design, Packaging
and Handling Technologies for MSMEs

Off- School English Proficiency

Focused Investment in High Priority
Skills

Greater Access to Development

Opportunities through Equity Regional
Budget for Infrastructures and Social
Services

Strict Implementation of Existing Laws

and Mainstreaming Disaster Risk
Reduction in Local Planning and Policy
Implementation
Continue Upgrading of Services and
Facilities within the Economic Zones

Technical Support for Greater Access to

Product Design Packaging and Handling
Technologies for MSMEs and AgriProcessors

PROGRAMS
PROJECTS
ACTIVITIES

24

II.

VisionStatementandItsElements
Central Luzon: A Sustainable and Caring Global Gateway
through PrivatePrivate-Public Partnership
and Growth for All
This statement underscores adherence to sustainable development principles as
underpinnings of the regions preferred development path without compromising future
abilities to provide the needs of successor generations. It presupposes that improving the
quality of lives of the present and the next generation of Central Luzon requires concerted
efforts among all stakeholders -- government (national and local), on one hand, and business
sector and civil society, on the other, to harness the regions potentials for economic
production and inclusive growth.
Underlying assumptions include: (1) that when people from all sectors in the region converge
and engage in productive activities, the regions wealth shall increase; (2) that economic
growth shall be driven by resource-based activities resulting to inclusive improvements in the
general welfare; (3) that when the regions natural resources are put to sustainable use,
inclusive economic growth shall also be sustained; (4) that the participation of government,
business sector and civil society to economic growth must be clear to all; (5) that sustained
economic growth of the region can be enhanced by considering the external environment
market and technological opportunities; (6) that local governments are in the forefront of the
economic development process with national government providing the necessary backstop.
In the long term or by 2025, the people of Central Luzon shall be globally-competitive in skills
and knowledge that form the foundation of a highly productive human resource base. All
families, irrespective of location or race are able to provide for their basic needs and are
satisfied with the general living conditions in their own localities. Gone will be sites of
informal dwellers, of children unable to go to school, of mendicants roaming the streets, of
insurgents rising in arms against the government, of congested penal institutions, of labor
unions staging strikes and lock-outs, and of crimes to life and property perpetrated by
lawless elements. These shall be replaced by a picture of people from all walks of life
happily going about their productive economic activities.
The regions agricultural areas shall be showcases of productivity, profit and resiliency. We
can see efficient post-harvest handling and processing facilities operating at full capacities,
marketing networks that do not undermine the producers, farmers searching on-line in their
barangays or houses for better prices of their commodities or for state-of-the-art production
and processing technologies.
On sloping areas and uplands, we shall observe not only soil and water conservation
measures supporting crop production, the vibrant green cover of critical watersheds and
biodiversity in other protected areas but also forest production activities that consider the
carrying capacity of the resource base and environment-friendly technologies. In some
areas, we shall come in contact with resource extracting miners who care for the
environment they are working on. We shall also find mined-out areas that have blossomed
into productive communities.
One can go to either the east or west coast and frolic in the waters or one can go swimming
in the regions numerous river systems. In the urban areas, the unsightly mounds of
uncollected garbage, traffic congestion, smog and flooding shall be things of the past. In the
25

few instances when natural hazards strike, there shall be no losses in lives and disruptions in
economic activities shall be short-lived as there shall be minimal destruction of safelylocated critical infrastructures.
As a favored international convention center and inter-regional tourism hub, Central Luzon
shall be exhibiting efficient tourist-friendly services and facilities. Regular international
flights for passengers shall be landing on the runways of Clark and Subic with connecting
domestic flights to key tourist destinations in other parts of the region and the country. An
array of tourism activities and sites shall be offered in the seven provinces. Visitors shall
have no fear in going around the region. They can easily find their way around because of
international standard road signages, information centers, and accommodating population.
Once a tourist visits any place in the region, he or she shall be induced to stay longer and
explore the rest of the region.
By that time also, investors shall be confident of their investments in the region. Industries
and higher value-adding activities catering to both domestic and international market
demands shall mushroom in our developed industrial estates. There shall be streams of
highly productive labor supply that have gained knowledge and skills that are comparable to
any other in the world. A Silicon Valley-like industrial enclave shall be a banner area of the
region.
In addition to supporting the transport requirements of locators in industrial estates, Clark
and Subics air and sea assets shall have developed into competitive logistics and
transshipment hubs in the Asia-Pacific Region. A transshipment hub in Dingalan, Aurora
shall complement them. This east-west multi-nodal physical connection shall form the
backbone of the regions drive towards becoming a global gateway between Asia and the rest
of the world.
While the private sector and civil society are doing their contributions to wealth creation,
local governments are providing social services and operating facilities that are accessible to
all people and at creditable levels of efficiency and effectiveness. Both national government
agencies and Local Government Units (LGUs) are maintaining a regulatory environment
conducive to economic growth. Thus, business permitting processes and systems shall be
transparent and predictable. Complementation between national government and LGUs
shall be expected in their endeavors.

III.

SpatialStrategy
To attain the vision, Central Luzon shall
continue to adopt the Enhanced W
Growth Corridor spatial strategy. Although
maintaining the original W, the enhanced
version recognizes the potentials and
opportunities of Aurora. It is enhanced in
the sense that the spatial strategy
indicates the importance of an effective
urban-rural link as a vehicle for inclusive
growth. This is shown in Figure 2. through
the emergence of an ear looping towards
Baler and Dingalan then extending up to
the western side of the region to Iba,
Zambales crossing the original legs of the
W thereby effectively providing an

Figure 2
ENHANCED

CORRIDOR

26

alternate connection between and among them.

The growth corridors will continue to maximize the comparative advantages and
development roles of the provinces and development areas in the region. The first leg of the
W (blue strip) or western portion of the region is designated as the tourism corridor. It starts
from the northernmost town of Sta. Cruz and Masinloc in Zambales up to Subic Bay
Metropolitan Authority (SBMA) area. The inner leg or Central portion (orange strip) will
constitute the industrial heartland. The eastern portion (dark green corridor) will showcase
agricultural areas devoted to high value crops and agro-forestry. It runs along the fertile
westerm part of Bulacan and through the areas of Nueva Ecija. The ear part and the lateral
leg (light green) will be a combination of tourism and agriculture development.

IV.

DevelopmentGoalsandObjectives

Below are the six long-term development Goals that directly support the attainment of the Vision.
They are translated into medium-term development objectives which compose a six-year success
slice under each stated Goal.
GOAL 1:

High Sustained and Inclusive Growth

The continuous decline of the regional contribution to the national output shall be arrested and
reversed.
A. High GRDP per capita
The Gross Regional Domestic Product (GRDP) per capita of the region shall be
increased to equalize that of the country. From a -3.35 percent GRDP per capita
growth rate between 2008 and 2009, Central Luzons GRDP per capita shall be
increased from 3-5 percent at constant price for the coming six years.
B. High Employment and Family Income Level
The employment rate of the region between 2008 and 2009 remained at 90.8
percent. As this was a global recessionary regime, this means that the
governments fiscal expenditure expansionary policy proved effective. With the
global and national economy preparing for onward march to recovery,
employment rate for the coming six years shall be raised by 2-3 percent or
around 200,000 to 300,000 jobs generated. Employment generation is the
most pervasive anti-poverty measure, the sustainably high level of which would
translate to high future human capital productivity and cost-effectiveness in
governments pro-poor programs. Central Luzon shall maintain its position as the
region across the country with the third highest annual average family income
from 2003-2009. Between 2003 and 2006, the region experienced 1.88
percent increase in annual average family income, and between 2006 and 2009,
it posted a hefty rise of 35.58 percent. For the coming six years, the region is
expected to maintain a 36 percent upswing in the growth rate of annual average
family income.
C. Equality in Income Distribution
Gini coefficient shall be reduced from the 2006s .3994 to around .3222 in six
years with corresponding reduction in poverty and subsistence incidence.
27

GOAL 2:

Globally-Competitive, Progressive, and Resilient Citizenry

By 2016, the region shall be inhabited by people whose skills are of world-class standard and
caliber. Access to state-of-the-art technical skills shall be facilitated by a synergy from an EcozoneHost LGU economic integration. Heavy presence of foreigners in retail trade shall dictate the types of
skills that would be preferred by industries. A dynamic industry-academe linkage shall ensure
employability of graduates. Investment expansion from MSMEs and responsive poverty reduction
strategies shall push hard employment generation and access to development opportunities down to
the most vulnerable and marginalized.
High and sustained investment expansion from private sector and relevant social programs shall
make ripe opportunities for progress to everyone. Growth and development and the benefits they
generate in the process shall be protected and sustained by making a disaster-consciousness
populace. Regional and local development planning shall integrate climate change adaptation and
disaster risk reduction as permanent planning frameworks, hence bringing anticipated socioeconomic dislocation and growth-suspending disasters to a minimum, set the tone for a speedy
recovery and rehabilitation, and institutionalize the culture of resiliency for the citizens.
A. Minimize natural disaster casualties and economic losses
Identification and characterization of various natural hazards and the location of
exposed population shall equip policy decision-makers with the correct information
and enable them to institute the necessary measures to ensure their own personal
safety and their property. With DRR/CCA as framework, land use planning and proper
implementation of zoning ordinances shall be utilized to the fullest. Focus shall be
given to the agricultural sector where a considerable number of poor depend for their
livelihood.
B. Make food cheap and plentiful
Food items such as rice, fish, fruits, vegetables, poultry and swine shall be produced
at higher efficiencies, moved at lower transport cost from the farm to the market and
offered for sale in bulk at relatively low prices. Organizing of farmers/fisher folks,
farm diversification, post-harvest processing, packaging and handling shall give more
power and value to the producers and their products, strict implementation of antismuggling laws will enhance their income and their pesos purchasing power.
Adequate storage support shall save the farmers/fisher folks from the seasonality of
price fluctuations and create an atmosphere of stable price for the farmer/fisher
folks produce.
C. Improve basic education achievement rates
Provision of adequate teachers, classrooms, desks, tables, and computers is
expected to result in higher participation rates, completion rates and National
Achievement Tests (NAT) results.
D. Improve access to health services
A healthy citizenry is a requisite to sustained and high level of productivity. Private
appropriations for personal health and medical care and access of the deprived to
government-provided services are geared to maintain a state of healthy physical and
mental well-being for the citizens. Interventions in this regard shall create a stock of
human capital of world-class standard.

28

E. Support the development of world-oriented higher education institutions

The regions exposure to state-of-the-art technology through the network of economic
zones, the adaptability of the export industry to the requirements of international
partners, and the liberalized retail trade environment are open windows to the
knowledge and skill requirements of the global economy. Addressing mismatch in
industry requirements and the types of quality of graduates shall position the regions
by Higher Education Institutions (HEIs) and technical-vocational institutions into a
state of continuing relevance to existing, new and emerging industry requirements.
F. Highly employable technical and vocational skills
Employment of the regions middle-level manpower trained formally through the
government-initiated Technical-Vocational Education and Training (TVET) Programs
will immediately help improve regional output, alleviate poverty situation, optimize
results from the government development interventions in TVET and socially market,
locally and abroad, the skills honed and acquired through formal trainings. For the
coming six years, the regions TVET Programs shall increase the regional TVET
graduates employment average by almost 10 percent that is from the current 36.54
percent to 45 percent.
GOAL 3:

World-Class passenger mobility and cargo distribution network

A. Improve land transport access from the urban core to the east and west coasts
Physical connectivity of the regions urban core to the agricultural areas shall ensure
efficiency of production and consumption processes, integrate factor and product
markets, and produce the necessary skill requirements in the process. Efficient road
networks shall facilitate access to development opportunities to mainstream the
economically deprived to the productive sector.
B. Increase the level of service of strategic roads and north-south arterial links
The strategic connection accorded by the regions road network systems, being the
transit point from the urban metropolis and the resource-rich agricultural areas to the
north, while providing the needed economic impetus to grow has been constantly
putting a strain on the regions infrastructures. The region shall adapt to the growing
requirements of the commodity exchange to capture the vast economic opportunities
that the process offers. Timely adaptability in terms of physical expansion and
quality upgrade of the north-south arterial links is of crucial importance.
C. Integrate the three modes of transportation (land, air and sea)
Air and sea transport serves an equally important role in passenger and goods
movement within and outside of the region and the country. While the distinct role
each (to include land transport) plays is recognized, integration of the three transport
modes (land, air and sea) shall create the needed synergy.

GOAL 4:

Sustainable Land-Using Activities

A. Ensure that mining operations are environment-friendly
Historically, left-out mined-out areas are a rich source of anecdotes of sad
experiences of host communities who were made more economically deprived and
29

whose future was at high risk owing to a damaged environment.

Strict
implementation of the Philippine Mining Act in the regions mining concession areas
shall ensure that mining operations are not only cognizant of the fragile nature of
mining areas but accord the host communities the lifetime privilege and opportunity
of getting economically better-off after mine pull-out.
GOAL 5:

Socially-Responsible Property Rights

A. Security over property rights
The region shall take full advantage of the term-extension of the Comprehensive
Agrarian Reform Program (CARP) by strictly tracking the pace of individual titling
(evidentiary of absolute ownership) of agricultural lots physically segregated for and
actually appropriated by farmer-beneficiaries. While the Certificate of Land
Ownership Award (CLOA) has accorded them some degree of tenurial security over
their realty, it has not provided them absolute security as to motivate them toward
economic growth and financial stability.
B. Improve the profitability and sustainability of MSMEs
Being massive job generators, MSMEs are the primary anti-poverty instruments by
private sector partners, they are primary movers for widening the middle class base,
an explicitly pronounced target by the President himself during his term. To make
their influence felt in the regions economic growth in the long-run, appropriate
technical, marketing, financial and policy support shall be provided.
C. Increase rural farming and fisher folk family incomes
Various forms of support (financial, technical, market) to the farming and fishing
families are all geared towards improving their productivity and enhancing their
income. Specific direct anti-poverty programs aimed at ensuring their access to
development opportunities are intended to improve their peso purchasing power.

GOAL 6:

Effective, Responsive and Transparent Governance

Effective, responsive and transparent governance starts with a working institutional
arrangement between various Local Government Units (LGUs) and the national
government agencies in the region. Clear delineation of roles shall attach
responsibility. The objectives of programs and projects, and the intention of policies
must find translation in real terms for their effect. Public transactions and their
documentation shall be made public as an obligation. Avenues for redress of
grievance must made known to all citizens.
A. Upgrade tourism establishments
The natural or geographic tourist attractions with the ancillary services shall be
positioned by developing them in their right quality and quantity. National
government-LGU collaboration shall be aggressively pursued so that tourism
promotion shall be conducted in an efficient and coherent manner.
B. Develop Clark-Subic regional tourism hub
Efforts at making Clark-Subic a regional tourism hub are being intensified through
upgrading of airport and seaport facilities, increasing air seat capacities of
30

international flights, tightened security within the Clark Special Economic and
Freeport Zone and its vicinity, private sectors establishment of hotels and
restaurants, close collaboration between and among the Regional Development
Council (RDC) III, Subic-Clark Alliance for Development Council (SCADC) and host
LGUs in tourism planning.
C. Recover lahar-covered areas for productive uses
While the sand being extracted from the vast lahar-laden areas is a glaring source of
regular local revenues for quite a time, technical and market studies, and advocacies
on alternative contractual arrangements will help convert massive lahar-laden areas
to optimal productive uses.

V. DevelopmentStrategies
An analysis of the planning environment yielded the Development Challenges (see Chapter 3)
which are given focus and emphasis in the Plan. The analysis extracted development opportunities
which if unlocked would enable the region reach its full potential towards accelerated, sustainable
growth for all.
Below are the cross-sectoral strategies considered in the conceptualization and initial design
of Programs and Projects to ensure that they are responsive and effective means to attain the
medium-term objectives and the long-term goals and vision of Central Luzon.
A. Multi-Stream and Integrated Delivery of Support Services to Farmers and Farming
Communities
The strategy is intended to be both an employment and direct anti-poverty strategy. It
involves a direct response to addressing poverty as a multidimensional rural phenomenon.
Integrated services shall include legal guarantee to tenurial security over farmlands, equal
access to agricultural support services, key infrastructures for health and education services,
income-enhancing production processes and technologies, microfinance among others.
Organize Information Technology-based networking among farmers especially on the pricing
of their products shall be given emphasis. State University and College (SUC)-LGU
collaboration in agricultural extension shall be intensively pursued with support from the
local leagues and SUC development consortia as lead.
B. Modified Property Ownership for Individual Farm Lands to Promote Agricultural Production
Efficiency and Productivity
The value and utility of information on factor integration, technology utilization and market
diversification have either remained unappreciated as income-enhancing opportunities or
government support services fall short of the level required to capacitate farmers and fisher
folks to invest and take risks. To optimize the value of individual farm landholdings, the
government shall devise investment in income-enhancing production module packages that
will be made available for free to farmers and fisher folks. An open contractual arrangement

31

between government and farmers/fisher folks shall be promoted as marketable

opportunities for large private investments.
C. Continuous Upgrading of Services and Facilities within the Special Zones
Owing to the tightly competitive regime among special economic and free ports zones around
the globe, continuous upscaling of infrastructures such as road, electric power and
telecommunications within the special economic and free port zones and in the host-LGUs
shall be aggressively pursued. This would require the creation of a robust common policy
framework among all development players particularly the zone authorities and the
concerned NGAs and LGUs.
D. Seamless Business Processing
National government agencies and LGUs are governed by different laws. Hence, in interagency undertaking such as business permit processing and issuances, irritants arose from
unsynchronized work and time schedules. Whether from national or LGU, the public to
include existing and prospective investors are disadvantaged through the process. A
continuing dialogue between concerned NGAs and LGUs must be conducted to address
specific concerns to establishing a seamless business processing system.
E. Equal Access to Information on Production Processes and Factor-Product Market Integration
Information on productive inputs and products, their sources, and prices shall form part of
the data base of every LGU as an investment promotion measure. Possible gaps in forward
and backward linkaging in production processes shall create an open system to investment
opportunities, technology access and upgrading and market diversification. The information
shall provide opportunities for small investors to establish strategic business alliances as an
income-enhancing strategy.
F. Regionwide Focused and Targeted Peace and Security Program as Banner in Regional
Investment and Tourism Development Plans
The inability to formulate a coherent peace and security for the region arises out of the
exercise of local autonomy by various LGUs in the region. This problem persists despite the
obvious advantages from the point of view of investment promotion. The lack of
commitment resulting from independent actions and responses shall be addressed through
continuing dialogue between and among the different players. This will be inputted as a
singular promotional measure in the Investment and Tourism Development Plans.
G. Technical Support for Greater Access to Product Design, Packaging and Handling
Technologies for MSMEs and Agri-Processors
Hard work in the farms and individual skills and unique craftsmanship in micro- and small
non-farm enterprises are strengths of the region. However, lack of access or wrong
32

appreciation on the benefits of marketable product design and packaging and standardized
product handling continually work against product competitiveness and dominance. A review
on the current efforts on this must be done so that concerned agencies are able to reposition their support services.
H. Greater Access to Development Opportunities through an Equity Regional Budget for
Infrastructures and Welfare Services
Spatial variations across the region on the relative physical access to welfare services by
provinces continually serve as binding constraint to sustainable and equitable growth and
ultimately to poverty reduction efforts. Using equal access to development opportunities as
framework, the region shall identify priority areas for intervention to address the
fragmentation of welfare service delivery arising of lack of physical access. To complement
physical integration, fragmented delivery of health services resulting from the independent
administrative delineation of responsibilities shall be resolved.
I.

Optimize Public-Private-Partnership as Dominant Mode for Funding Priority Tourism Facilities,

Critical Infrastructures and Investments in Value-Adding Technology for Provinces Principal
Agricultural Products
Inter-provincial Production and Technology Centers focused on the provinces comparative
agricultural product advantage shall be established in strategic areas in the region. The
strategy shall be an income-enhancing measure for farming and foresting communities
through adoption of value-adding technologies. Along with priority tourism facilities and
networks, P-P-P shall be pushed as the most preferred mode of implementing this strategy.

J.

Address Weaknesses in English Proficiency as Competitive Edge in Employment through

Alternative Learning Modes
Despite our perceived advantage over the use of the English language, the ICT sector in the
region is experiencing shortage of English-proficient workers. This indicates the lack or
incorrect usage of the English language in schools. Other Asians are continuously exerting
efforts to penetrate this exclusive realm. Concerned education agencies in the region shall
look into the causes of the low level of English-proficiency of students and graduates.
Alternative modes of improving current proficiency levels shall be adopted.

K. Strengthen LGU Capital-Forming Capabilities through Decentralization Policy Reforms

Data show that the spatial disparity in capital-forming capability of Central Luzon provinces is
real. This is translated to present deprivation by the poor of opportunities for physical
survival and clear opportunities for future growth. RDC III must be given authority to
eliminate the obvious geographic variations among provinces by conferring it with some
authority to determine budgetary allocation of selected RLAs for priority Programs and
Projects it will identify.

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L. National Government Budget Prioritization of Regionally-Identified Tourist Destinations

Tourism is dependent on quality infrastructure and stable peace and security structure. It is
continuously beset by dichotomized organizational set-up and processes in the development
of tourism facilities and investment and tourism promotion. A nationally-determined budget
focused on regionally-identified strategic tourist destinations shall create a responsive
budget harmonize current efforts by various actors.
M. Efficient Financial Intermediation for MSMEs through Unification of Banks and Non-Bank
Institutions
Banks and other financial institutions in the region shall treat MSMEs as a special assistance
area. Barriers in terms of loan access and slim chances for survival, growth and
sustainability shall be eliminated by packaging their services in terms of greater flexibility in
loan extension and other support services intended to ensure their profitability. Policy
flexibility on loans and minimum indicators on the extent technical and marketing support to
be extended shall constitute the minimum Terms of Reference (TOR) in their strategic
alliances.
N. Regional Omnibus Investment and Employment Code focused on MSME productivity, growth
and employment
RDC III shall initiate the completion and harmonization of local investment promotion and
incentives programs, plans or codes. It shall work on the formulation of a Regional
Investment and Employment Code (RIEC) focused on MSME growth, productivity and
employment capacity. The strategy is intended to sustain the enduring and more stable
character of MSMEs as massive employer of local human capital.
O. Population Management
For greater effectiveness of anti-poverty measures, population growth of special groups shall
be directly and consciously managed. The strategy is intended to ease the pressure on
government resources and optimize the benefits from its investment. It will facilitate the
haul-out process from the vicious cycle and permanently mainstream them into the
productive sectors.
P. Strict Implementation of Existing Laws and Mainstreaming Disaster Risk Reduction in Local
Planning and Policy Implementation.
The massive costs of disasters to development pace and investments are recognized.
Suspended growth because of disaster occurrences shall be avoided by mainstreaming DRR
into the usual planning cycle so that development interventions, being disaster-reductionbased may serve as more stable basis for long-term growth scenario. The national directive
and regional development strategy is already being downloaded to the provincial level
through the standardized mainstreaming guidelines.
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Good governance in DRR involves the strict implementation of existing laws particularly the
Forestry, Mining, Clean Air Act, Ecological Solid Waste Management Act, the National Building
Code, the Water Code and local Zoning Ordinances. The conduct of constant dialogue
between the Forest Management Bureau (FMB), Mines and Geo-Sciences Bureau (MGB) and
the Environmental Management Bureau (EMB) of the Department of Environment and
Natural Resources (DENR) and clear delineation of the roles between and among the DENR
and its attached bureaus and the LGUs exercising jurisdictional authority over the subject
areas. Encouraged and aggressive civil society participation in policy implementation is
imperative.
Social safety nets shall be provided to the extremely deprived and potential victims of
disasters in order to mitigate their sufferings and facilitate their mainstreaming into the
productive sectors. Social protection shall be given to those who graduated by poverty but
owing to the onslaught of disasters shall relegate them again to a state of extreme
deprivation.
Q. Focus Investment in High Priority Skills
The continuing mismatch in skill and industry requirements need to be narrowed down or
closed. This is manifested by the disparity in the TVET graduates and those employed in the
discipline they were formally trained. The Key Employment Generators (KEGs) of the country
and the region, those emerging locally and those sourced from opportunities that the global
market offer shall find their place in the TVET curricular offerings, the timing of their offering,
and the packaging of training design and instructional materials preparation.
Alignment with high priority skills, timing and relevance of program offerings shall immediately
result to efficiency in program implementation and high employability of acquired skills.
Variants of government scholarships shall be designed to minimize losses from risks of long
unemployment and maximize outcome from skills immediately employed. Results-based
monitoring of graduates employability shall be a permanent feature of governments TVET
programs so that the Technical Education and Skills Development Authority (TESDA) shall not
only be imparting quality knowledge to program takers but transforming manpower potentials
to actual skills-users and skills-developers in the regions productive sectors.

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Chapter4: PriorityProgramsandProjects
I. Introduction
Development objectives are translated into more operational terms through development programs
and projects which shall be funded through the regular budgeting process of the national
government and its instrumentalities complemented by local government financing. Some of the
projects or activities that are beyond the capacity of either national or local governments to finance
shall be packaged to tap other financing sources or proposed for innovative financing arrangements
especially through Public-Private-Partnership.

II. PriorityPrograms,ProjectsandPolicies
The Programs and Projects identified under each stated Development Objective are as
follows:

A. MinimizedNaturalDisasterCasualtiesandEconomicLosses
1.

Luzon. The first phase of

Landslide and Flashflood Hazard and Risk Mapping in Central Luzon
this project shall cover the provinces within the Sierra Madre Mountain Range while the
second phase shall cover areas in Mariveles and Zambales mountains. The project aims
to generate hazard and risk maps that may serve as guides in urban and regional
planning and in formulating and designing mitigation measures and in giving proper
warnings to people at risk. The study involves analyses of topographic maps, air photos
and satellite imageries to map geomorphologic features relevant to landslide and
flashflood susceptibility. Initial interpretation shall be verified by aerial and ground-based
surveys. The data shall be processed, integrated and analyzed using Geographic
Information System (GIS). In general, the project shall: (1) identify and characterize
slopes prone to landslides; (2) identify and characterize river morphological features
critical for flashflood generation, such as river constrictions, alluvial fans and deltas; (3)
identify and map areas where water can be temporarily impounded by natural dams,
which can be breached suddenly to release water as flashfloods; and (4) identify and
map population centers and vital infrastructures at risk.

2. Urgent Rehabilitation and Improvement of Agno River Flood Control Project

Project. The project
involves river training works, dike construction, and channel excavation at the
downstream of Agno River at Lingayen Gulf. A temporary retarding basin at Poponto
swamp in Moncada and Paniqui, Tarlac to regulate the flow of floodwater downstream is
currently being established. The dike system of Tarlac River, also silted with lahar and a
tributary of Agno River, will also be improved.
3. Pinatubo Hazard Urgent Mitigation Project V (PHUMP).
(PHUMP) This project is designed to
rehabilitate areas in Zambales, Pampanga and Tarlac devastated by the eruption of Mt.
Pinatubo and the subsequent lahar flows. The completion of PHUMP (Phases I, II, III, IV,
& V) is envisioned to fully address lahar and flooding problem in Tarlac, Zambales, and
36

Pampanga.
Japan International Cooperation Agency (JICA) has committed to provide
funding assistance for the completion of PHUMP and provided funds for the completion
of Phases I to IV. A detailed study has been commissioned for the implementation of
Phase V involves the river basin affected by Mt. Pinatubo eruption in Zambales. These
are the Bucao-Balin Baquero, and Sto. Tomas- Marella rivers. The study once completed
may be proposed for possible JICA funding.
4. Pampanga Delta Development Program Flood Control Component.
Component This project is one
of the most celebrated flood control projects implemented in Region III. Like the Agno
River, the Pampanga River has a huge watershed encompassing Central Luzon that
extends to Cagayan Valley. The huge volume of water it carries during rainy season floods
significant portion of Pampanga and Bulacan provinces. The project essentially involved
the improvement of Pampanga River mouth to 15.5 km upstream by dredging the low
water channel with provision of parallel dikes and construction of related structures.
The loan became effective on the 2nd quarter of 1990. After two loan extensions and 11
years of implementation, Phase I of the project was completed in 2002. The main cause
of delay was Right of Way (ROW) acquisition attributed to low property valuation coupled
by strong opposition by the local community including the Municipality of Calumpit,
Bulacan. This resulted in downsizing of project scope. The government has spent almost
P1 billion for ROW acquisition alone. A total of 70 hectares were provided to resettle
about 1,800 families.
Below are the major components proposed under Phase II:
a) Continuation of the dike system - the low and high water channel completed under
Phase I will be extended up to the Candaba swamp passing through the Municipality
of Calumpit, Bulacan;
b) Expansion and improvement of Labangan Floodway - The existing Labangan
floodway which collects flood water from Candaba Swamp (Southern Part) and Angat
river, passes through Calumpit, Hagonoy, and Paombong in Bulacan before emptying
in Manila Bay. Under the 20-year flood discharge, Labangan channel will be
expanded from 80 meters to a width of 750 meters.
c) Resettlement area/Base mound Around 198 hectares of resettlement lands will be
established to accommodate some 6,700 families who would be dislocated once the
Labangan floodway is widened and deepened.
5. Pasig Potrero River Diking System (FVR Mega Dike) Development Program.
Program. The project
is part of the overall lahar mitigation intervention in the Pasig - Potrero river system
implemented to contain the spread of lahar. The proximity of this river system with the
regions center of trade and economic activities
made it the most potentially
destructive. The situation was further aggravated by the shifting of lahar materials
(piracy) at source upstream in 1992 and 1994 which shifted the flow of pyroclastic
material from the Abacan and Sacobia-Bamban river system to the Pasig-Potrero river
system.
The system (a.k.a. FVR Mega Dike) is a network of dikes with reinforced concrete (facing
riverside), enclosing the headwaters of the Pasig-Potrero river in the municipality of Porac
down to the lower reaches of the river just before the Gapan-San-Fernando-Olongapo
(GSO) road. The structure is more than 37 kilometers in length with an average height of
37

10 meters, and is designed to accommodate 70 million cubic meters of lahar deposits.

Some of its weak portion were breached in the past but were readily repaired and
fortified.
There is a need to implement regular dredging maintenance works and ensure that
quarrying operations do not compromise the integrity of the diking system and bridge
structures within the mega dike and Pasig-Potrero river system.
6. ValenzuelaValenzuela-ObandoObando-Meycauyan
Meycauyan Drainage Improvement and Related Works Project.
Project The
project aims to address flooding problem in Valenzuela, Obando and Meycauyan,
Bulacan Areas. Project components are as follows: i) raising and strengthening of
existing masonry walls on the left bank of Meycauayan river, ii) raising of existing riprap
dike on the left bank of Meycauyan river, iii) channeling, construction of dike, and
establishment of regulation pond, iii) raising of Obando-Bulacan Road, iv) establishment
of pumping stations and flood control gate structures, among others. The project is in
project feasibility preparation stage.
7.

GapanGapan-San FernandoFernando-Olongapo (GSO)Road Development Program (Phase I & II).

II) GSO I
& II are basically roads and bridges upgrading and/or widening undertaking with
dredging component. It is located in the Mt. Pinatubo-affected area in the Province of
Pampanga. The main beneficiaries are the municipalities of Bacolor, Lubao, Sta. Rita
and Guagua in Pampanga and Dinalupihan in Bataan and the City of San Fernando. Its
main component involves the raising or reconstruction of Sta. Cruz Bridge and the
widening from two to four lanes, the section from Sta. Barbara Bridge to Sta. Cruz. GSO II
involves the construction of the Lubao Bypass and the widening of the GSO section from
Sta. Cruz, Lubao to Layac, Dinalupihan, Bataan.
To complete the rehabilitation of the entire stretch of GSO, DPWH may prioritize for road
expansion, heightening or even realignment , the flood-prone Mexico- Arayat- Cabiao
section.

8. Community
Community--Based Forest Management (CBFM). The program will mainly establish tree
plantations, develop agro-forestry, and implement livelihood projects for beneficiaries.
The program will also include management of coastal marine resources thru
maintenance of CBFM mangrove areas.
9. Forestry Sector program (Phase II). This nationwide project aims to restore inherent
multiple functions of watershed and to improve the living standards of upland dwellers by
utilization of natural resource in a sustainable manner. The project covers some 36,600
hectares of forestland in the watersheds of Upper Pampanga River located in the
province of Nueva Ecija. This represents around forty seven percent of the whole
forestland within the watershed. Component activities include community organization
and mobilization, rural infrastructure improvement, institutional strengthening and site
development.
10. Sierra Madre Reforestation Program. The project aims to improve the forest cover of
denuded areas on the slopes of Sierra Madre within the region that are not presently
covered by special reforestation projects of the DENR or concerned LGUs. Initial focus
shall be areas that are identified critical watersheds but have not yet been included
under the National Integrated Protected Area System. An initial activity shall be an
assessment of all forest resources of the region and determining the actual tenure
arrangements with the view of determining present open access areas.

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11. Arayat National Park Development Project.

Project The project aims to effectively protect,
conserve and manage Arayat national park in order to maintain ecological biodiversity
and promote sustainable development. Under the project, degraded areas within
proclaimed protection zones shall be restored. The project shall also strengthen linkages
with NGOs, LGUs, POs, NGAs in the biodiversity conservation, management and
development of the park. Provision of livelihood opportunities to local residents shall
also be undertaken.
12. Watershed Community Development Program.
Program The project contains a comprehensive
program to directly benefit communities located in watershed areas in the province of
Aurora. It has the following components: (1) environmental literacy and awareness
activities; (2) strengthening of municipal watershed management committees; (3)
implementation of environment enhancing projects; and, (4) establishment of pilot
watershed community development centers.

B. Improved Land Transport Access from the Urban Core to the East
andWestCoasts
1. North Rail Project. The Philippine National Railways (PNR) operates the North line,
South Line, and the Metro Rail Commuter. The North and South Lines run through an
aggregate of 1,296-kilometer route. The North Line caters to the provinces of Bulacan,
Pampanga, Tarlac, Pangasinan, Nueva Ecija, La Union, and Ilocos, until its closure
sometime in 1989. Railway is adjudged as an important mass transport system as it
provides a fast and convenient way of moving people and goods.
Since its closure, the Philippine National Railways (PNR) has been trying to revive the
mainline North. The PNR together with the Bases Conversion Development Authority
(BCDA) and other parties formed a consortium, which established the North Rail
Corporation. The objective is to modernize the North Line through the development of
Manila-Clark Rapid Railway System (MCRRS). The project will link Bonifacio Global City
and Clark Freeport Zone (CFZ). Based on the study, MCRRS can become independently
viable if initially operated between Malolos, Bulacan and Caloocan City. However, if the
entire stretch is constructed linking Clark and Bonifacio Global City, MCRRS needs full
operation of DMIA as source of ridership.
North Rail is one of the projects ordered by the President to have its contract renewed.
2. Iba
Iba--TarlacTarlac-Sta.Rosa Road. The completion of the Tarlac-Iba Section may not yet be
realized in the medium-term considering that a BOT taker is yet to be secured due to
limited traffic demand. However, there is a need to increase the reliability of the Tarlac
City to Sta. Rosa section most especially in La Paz, Tarlac where perennial flooding is
observed during the rainy season. This condition forces small and light vehicles to use
longer alternative routes and even heavy vehicles to do the same during the height of
flooding. As such, addressing this situation should be given priority by the DPWH.
3. Dinalupihan
Dinalupihan--Angeles Road (DAR) Widening and Upgrading. This is one of the many
roads in the region that was severely affected by the eruption of Mt. Pinatubo. The
bridges crossing Pasig-Potrero and Porac-Gumain Rivers were already completed. It is to
be noted that this road is parallel to the SCTEX. It serves as an alternate or service route.
4. North Luzon Expressway Extension Project (Tarlac(Tarlac-PangasinanPangasinan-La Union Expressway
Expressway or
TPLEx) . The project proposes to extend the North Luzon Expressway from Sta. Ines up
39

to Rosario, La Union in order to shorten travel time to the industrial estates in Central
Luzon and the main entry and exit points of products and people in Limay, Mariveles,
Subic and Clark.

C. Increased Level of Service of Strategic Roads and North-South

ArterialLinks
1. Manila North Road (MNR) Widening and Upgrading. The expected completion and
operation of the newly upgraded NLE may divert traffic to MNR considering the
magnitude of the increase in toll fees. Obviously, it is not possible to operate two (2)
parallel expressways in order to induce competition. However, motorists and the riding
public may be given choice by upgrading and widening MNR. Currently, the said section is
congested and prone to flooding specially during the rainy season. Widened MNR,
coupled by coordinated traffic management schemes initiated by local government units
(LGUs) concerned is a strong boost to the logistics and transshipment hub agenda of the
region. Meycauayan-Tarlac Section, Phases 1 and 2 were already completed.

2. Cagayan Valley Road (CVR) Widening and Upgrading.

Upgrading. The CVR together with the MNR
are the main north-south arterial connection of Central Luzon to the rest of the Northern
Luzon Regions. The congestion of CVR is particularly evident in i) Plaridel-Baliuag, ii)
Cabanatuan City and, iii) San Jose City sections. Under the Upgrading of Pan-Philippine
Highway Project, the entire stretch will be rehabilitated and bypasses on critically
congested sections will be constructed. Detailed engineering started in 2001.
Construction is completed in most part of Region 3.

D. IntegratedLand,AirandSeaTransportModes
1. Dingalan International Port. The construction and operation of an international port of
entry in Dingalan shall pave the way for improved access to the Pacific side not only for
Central Luzon but for Metro Manila as well. The project involves: (1) delineation and
proclamation of the proposed port zone; (2) preparation of feasibility studies and detailed
engineering plans for the port; (3) Gabaldon-Dingalan Road Improvement; and (4)
Dingalan-Umiray Road improvement.
2. Global Gateways Program.
Program The program aims to strengthen the linkage between Subic,
Clark and Tarlacs industrial estates by advocating for the unification of the port and air
assets of the former two under a single management in order to increase efficiency and
accessibility to locators. The Subic-Clark Alliance for Development Council (SCADC) in
charge of the program.
3.

Feeder Airports Development (Baler and Iba). The project involves the required set of
interventions that shall lead to the operation of feeder airports in Iba, Zambales and
Baler, Aurora. Runway widening and extension complemented by road access
improvements, fencing and facilities development form the core of activities under this
project.

4. Aurora Pacific Economic Zone (APECO) Facilities Development

Development. The project includes the
construction of port and airport facilities and corporate center buildings within the
proclaimed APECO area.

40

5.

Freeport Area of Bataan (FAB) Port Development Program.

Program The project entails the
improvement of port facilities in the Freeport Area of Bataan including berthing,
anchorage, cargo handling and holding.

6. Conversion of the Roman Highway to a toll expressway.

expressway Roman Expressway was
constructed as a faster alternate route from the North Luzon Expressway to the Bataan
Peninsula, particularly to the industrial areas in the southern coast such as the Limay
Petrochemical complex and the Freeport Area of Bataan. The highway is regularly
traversed by heavy laden cargo trucks and fuel containers resulting to regular decrease
of the pavement and surface quality. Thus, the maintenance of the whole stretch has
always posed a problem in mobilizing funds for its maintenance as a high capacity
highway. With its conversion to a toll expressway through private sector participation
may unburden the national government of its regular maintenance.

E. UpgradedTourismEstablishments
1. Rehabilitation of Tourism Facilities.
The region has several tourist destinations.
Facilities
However, these are inadequate and below standard. The region, by encouraging the
private sector, shall invest in the rehabilitation and upgrading of existing tourism
facilities, such as those in Biak-na-Bato in Bulacan, Mt. Arayat and Mt. Samat in
Pampanga and Bataan respectively.
Furthermore, the infrastructure sector will be
tapped to put in place support infrastructure, such as access roads to tourism areas.
2.

Tourism Information Development Project

Project.
This project includes the operation or
strengthening of existing tourist information centers or visitor information desks in key
areas in all provinces. A component activity shall be the enhancement of Central Luzons
regional tourism website and the preparation and uploading of linked provincial tourism
websites.

This project involves a capability building

3. Strengthening of Local Tourism Offices.
Offices
program for local tourism officials and employees in planning, programming,
implementation and monitoring of tourism development projects. It shall also include
assistance in developing and operating local systems and procedures in accrediting
tourist establishments. Through the project, some LGUs may be assisted in formulating
their local tourism codes.

F. DevelopedClark-SubicRegionalTourismHub
1.

SubicSubic-Clark InterInter-Regional Tourism Hub.

Hub Under this project, intra-provincial, interprovincial and inter-regional tourism circuits shall be identified with the Clark-Subic area
serving as the hub. A major activity shall be the preparation or updating of the Central
Luzon Tourism Master Plan, strengthening of the association of tourism establishments
in the region and the local government tourism offices, promotion and conduct of a
series of tourism festivals, promotion and preparation of collaterals.

2.

Improvement Of Physical Access To Tourist Destinations.

Destinations The Department of Public
Works and Highways and Local Government Units shall jointly identify sections of the
regions road network that lead to key tourist destinations and prioritize the same for
rehabilitation, repair, reconstruction or improvement. At the same time, road directional
41

signage shall be improved to be at par with international standards. Initially, the

replacement of road signage shall be done in major roads and along other roads leading
to the identified key tourist destinations.
Other components of this program shall include: the development of a fast craft ferry
route through Manila-Corregidor-Bataan; opening of Clark-Baler and Clark-Iba air routes
for passengers. Public-Private-Partnership shall be the main engine to keep this program
running.

G. ImprovedProfitabilityandSustainabilityofMSMEs
1. Small and Medium Enterprises (SME) Development. The Regional SME Team intends to
provide SMEs several services such as giving assistance on marketing and product
design, thru the establishment of a regional design and packaging center. The Team
intends to intensify information and education campaign on available government loan
guarantee programs. Recommendations to financial institutions for financing programs
that will rationalize collateral requirements of SMEs will also be made. The local
government units and government agencies will be enjoined to fully implement the antired tape act (ARTA). To further assist SMEs reduce the cost of doing business, DTI shall
continuously follow through the consistent reduction in the processing time for
government transactions.
2. Establishment of a Regional Packaging
Packaging and Design Center. The center, to be operated
jointly by the DTI and DOST, shall house experts on product design and packaging who
can be tapped to assist SMEs or local governments in improving their products to make
them globally-competitive. Also, trainings and seminars on packaging and product
design shall be regularly conducted by the center for prospective and active
entrepreneurs in the region.
3. Establishment of a peace and security information network. The concept of watch your
neighborhood will be encouraged from the smallest unit like the subdivision, sitio,
barangay, municipality, city, province, region. Information and reporting will be treated
with confidentiality to encourage the reporting to security agencies. Information through
landline and mobile phone hotlines may assuage fear of retribution. A Peace and Order
Communication System complete with the necessary Infrastructure (equipment, system),
marketing and an integrated information dissemination system and Information
Education Communication (IEC) materials to generate greater security consciousness
and support from the citizenry.
4.

Strengthening of Barangay Peace and Order Councils. Barangay Peace and Order
Councils will be strengthened through training and logistical support. Priority will be
given to the capability building for Barangay Tanods in mediation, peace keeping and law
enforcement.

5. Business Permits and Licensing System (BPLS).

The project seeks to establish
(BPLS)
computer-based permitting and business license processing and issuance in all local
government units throughout the region through the assistance of the Department of the
Interior and Local Government.
42

H. Environment-FriendlyMiningOperations
1. Mining Industry Revitalization .
The Mines and Geo-Sciences Bureau (MGB), the
Environment Management Bureau (EMB) and host LGUs shall work hand in hand to
proactively promote preferred environment-friendly mining and quarrying operators in
mineral and non-mineralized resource-rich areas. While the industry shall be revitalized
through operating new mines or quarries, or reopening idle or abandoned mines,
standardized appropriate environment-protective measures must be required before
mining permits and concessions are granted. The MGB intends to operate a One-StopShop (OSS) and Mineral Information Action Center (MIAC) for the judicious and fast
granting of mining permits.

I. CheapandPlentifulFood
1. Bulacan North Food Terminal Complex
Complex.
omplex. This project of the Provincial Government of
Bulacan, will contribute to the regions vision of agricultural modernization, countryside
development and food security. Specifically, it will promote proper handling, packaging,
processing of agricultural products, which will result into lower post-harvest losses,
product quality and better prices. Ground-breaking ceremonies for the construction of the
project were held in December 2008. The rites signaled the start of construction of a
two-storey building that will house some 760 trading stalls.
2. Establishment of Online Trading and Commodity Exchange Network.
Network This project directly
supports the operation of the proposed Bulacan North Food Terminal. An initial step of
this project is the identification and registration of commodity trading groups in
collaboration with the existing business-to-business initiatives of the Land Bank of the
Philippines. Business centers shall be established in key municipalities while the hub
shall be located in the North Food Terminal. Online computer terminals shall also be
established in barangays to provide farmers with easy access to market information.
3. Agricultural Extension Intensification.
Intensification The Department of Agriculture, Bureau of Fisheries
and Aquatic Resources, PhilRice, state colleges and universities (SCUs), and local
government units (LGUs) will consolidate efforts to identify technological interventions
both in farming and fisheries, and to disseminate such knowledge to farmers and fisher
folks. The project also involves the mobilization and re-tooling of devolved agricultural
extension personnel and strengthening of the network of farmers training centers.
4. Freshwater Fishes (Tilapia
(Tilapia and Pangasius) Development Program. This collaborative
undertaking among the private sector, local governments and the Department of
Agriculture seeks to expand the production of one-piece-a-kilo tilapia for fillet. Through
the project, small tilapia growers shall be organized to consolidate their fishponds into
minimum of 80-hectare production farms and extended assistance (technology,
financing and marketing). The project also entails assistance to the production of
pangasius fish and the establishment of cold storage facilities in the regions fishpond
areas. It also involves assistance in establishing fish processing activities and facilities.
5. Mango Development Program.
Program This involves the establishment of a mango research and
training center and the conduct of scientific researches on the pests and diseases
43

affecting the industry. It shall also include post harvest processing research and
technology generation and dissemination.
6. Agricultural Research Development Program.
Program This entails strengthening the research
capabilities of SCUs and other research institutions in the region focusing on
commodities where the region enjoys comparative advantages.
This involves
establishment of research centers on onion, tilapia, mango and forest products in Nueva
Ecija University of Science and Technology, Pampanga Agricultural Colleges, Ramon
Magsaysay Technological University and Aurora State College of Technology, respectively.
7. Quality Fish Brood Stock/Fingerling Production.
Production The Bureau of Fisheries and Aquatic
Resources (BFAR) thru its Regional Fish Production Centers shall maintain and produce
and disperse quality brood stock and fingerlings of freshwater, brackish water and
marine fish species.

J. IncreasedRuralFarmingandFisherFolkFamilyIncomes
1. Establishment of A Cold Storage Chain in The Region. This private sector-driven project
is a means to consolidate small farmer productions and increase their capabilities to
respond to market changes. Through the project, farmers vulnerability to depressed
prices during bumper harvests shall be lessened. Both onion and mango growers shall
benefit from this project.
2. Promotion of Contract Growing Arrangements Between Farmers And Processors
Processors. The
main activity under this project involves establishment and maintenance of a databank
of agri-processors and producers within and outside the region. This databank shall be
available to the regions producers. A support activity shall be the holding of regular
conferences and dialogues between industry players and producers before the onset of
the planting season.
3. Agricultural Production Support Program.
Program The project involves the dissemination of
soil/crop suitability maps to farmers and farmer organizations by the Department of
Agriculture through the local agriculture offices. It also involves the conduct of capability
training programs for local agricultural technicians to keep them abreast with production
technologies. Logistical assistance shall also be included.
4. Common PostPost-Harvest Processing, Handling and Storage Facilities and Service Centers.
Centers
Under this project, the Department of Agriculture, in close coordination with local
government units, shall cause the establishment of common service facilities for the
regions major crops in strategic areas. The operation of the centers shall be turned over
to cooperatives that shall also be provided capability building programs.
5. Feasibility Study on the Establishment of Nueva EcijaEcija-Aurora AgriAgri-Processing Center.
Center The
study shall determine the feasibility of establishing a central processing point for Nueva
Ecija and Aurora raw agri- and forest products for value-adding purposes and technical
capability upgrading of farmers and farm workers. The center is planned to serve as
technology transfer facilitation and productivity-upgrade mechanism. The nature of
linkage that must be established with APECO for optimality shall be highlighted.
6. Establishment of Digital Villages.
Villages This project shall involve the establishment of online
workstations in Barangay kiosks where farmers can access online information on
44

agriculture and related areas. The project shall also include a training component to
benefit farmers and key local leaders on the use and maintenance of their facility.
7. Land acquisition, distribution and support services.
services The intervention shall complete the
land distribution aspect of agrarian reform. To ensure the viability and sustainability of
the distributed farm lots, adequate support facilities shall be provided. These facilities to
be provided in Agrarian Reform Communities (ARCs) include farm-to-market roads,
irrigation, power supply, among others. Non-infrastructure support namely, capabilitybuilding and community organization shall likewise be provided.

K. Lahar-CoveredAreasRestoredtoProductiveUse
1. Rehabilitation of Existing Irrigation Systems.
Systems The National Irrigation Administration (NIA)
shall embark on an assistance program to LGUs that are maintaining communal
irrigation systems requiring rehabilitation and improvements. Special attention shall be
given to lahar-affected areas which for two decades have remained barren and idle.
Large tracts of land in these areas can more than offset the losses in area coverage for
agricultural production resulting from uncontrolled agricultural land conversion.
2. Recovery of LaharLahar-covered Agricultural Production areas Project. The project involves
assistance to owners of agricultural lands covered by lahar around Mt. Pinatubo.
3. Bamboo Development Project. Bamboo is a fast-growing grass ideal for re-vegetation
and known for its tenacity to resist typhoons and strong ground-holding character in the
midst of floods. Propagation has started but supply level needs to be sustained for lack
of enough space for nurseries.

L. ImprovedBasicEducationAchievementRates
1. Provision of educational facilities that include classrooms with the attendant facilities,
textbooks, computer sets at the elementary and secondary levels.
levels The intervention
involves the construction of school classrooms and provision of equipment, supplies and
materials which are indispensable to improving access to and ensuring quality basic
education. The construction of 2,564 (709 elementary and 1,855 secondary)
classrooms shall result in the attainment of the standard 1:45 classroom-pupil ration.
Provision of textbooks will help realize the standard 1:1 pupil-textbook ratio. The
construction of computer laboratories with 50 sets of computers to 341 secondary
schools and the provision of 20 computer sets to 2,422 established laboratory schools
shall ensure the transfer of necessary computer literacy skills.
2.

Skills Training cum Classroom Construction

Construction. A combination of infrastructure and
capacity-building, the intervention is intended to speed up the provision of classrooms
through the innovative scheme of classroom construction and parallel technology
transfer. It has the two-pronged objective of increasing the regional stock of elementary
and high school classrooms through the construction of new classrooms and the
provision of employable technical skills.

3. Financial assistance and scholarship to deserving poor students. The financial inability
of poor families to send their children to school despite their exceptional intelligence
45

renders them helpless. The program is intended to reverse this state of affairs by
making the cost of education affordable for them through the provision of financial
support in the form of subsidy, the grant of special privileges, and other alternative
schemes resulting in exemption from payment of school fees and/or the provision of
stipends or allowances.
4. Early childhood care and development. The pre-elementary needs of children ages 3-6
years in terms of proper nutrition and favorable learning environment has lifelong effects
on the childs learning capability and emotional and psychological disposition as human
person. The program is characterized by integrated developmental approach in
addressing the inadequacy and irrelevance of support mechanisms to the childs
development by providing equipment, supplies, materials to children-beneficiaries and
capacity-building interventions to parents and service providers.
5.

Elementary Science and Math Centers Project.

Project The Department of Education and the
concerned provincial government shall partner in establishing mathematics centers in
strategic elementary schools in every congressional district in the region. The project
also involves the establishment of similar science centers. These centers shall serve as
models for basic education provision on Mathematics and science for elementary pupils,
and shall also serve as training centers for elementary school teachers on the subject.

M. World-OrientedHigherEducationInstitutions
1.

Capacity building of service providers.

providers The program is intended to raise the skills
competency levels of providers of health, educational and social welfare services to
optimize the impact of social service interventions and improve quality of education.

2. Training Program on Production Processes in Economic and Freeport Zones.

Zones. Economic
and Freeport Zones shall be declared as centers of technology transfer. Due
accreditation of programs and certification of competencies shall be given by Technical
Education and Skills Development Authority (TESDA).
3. Program for AcademeAcademe-Industry Linkage.
Linkage. This will include a review of the existing
curricula and a continuing review and assessment of the teaching capability of courses
where licensed graduates clog the unemployment market. Commission on Higher
Education (CHEDs) regulatory powers shall be used in terms of curricular offering; its
scholarship programs shall provide the carrot policy for courses forecast to be highly
employable.
4. Academic Research on the State of the English Language as Competitive Edge in
Employment. The study is intended to diagnose the real state of English language for
college graduates and recommend measures to arrest its further degradation as a
medium of instruction in schools and as medium in communication in work places.
Filipinos competency and skill in the use of English over other Asians serves as
competitive edge in employment. The study will arrest the inroad of other Asians in the
realm which has been dominated by Filipinos.

46

N. Relevant Technical-Vocational Education and Training Programs

(TVET)

1. Intensified Social Marketing and Advocacy Program of TVET at the enterprise and
community level
2. Strict implementation of the TESDA Quality Monitoring System
3. Re-design of TVET scholarship programs for efficiency and relevance
4. Development of practical and relevant training modules for more effective results based
on TVET graduates employability
5. Annual tracking of TVET Program graduates and evaluation for its continuing relevance
and flexibility in the local and global labor market

O. ImprovedAccesstoHealthServices
1. Establishment of Botica ng Barangay and expansion of the service outlets of Gamot na
Mabisa at AbotAbot-Kaya (GMA 50).
50) High cost of medicines does not only make the poor
susceptible to diseases, they also fall prey to unscrupulous counterfeit and fraudulent
drug dealers. Both the Botica ng Barangay (BnB) and Gamot na Mabisa at Abot-kaya
(GMA) 50 are programs intended to make affordable and available commonly-dispensed
effective medicines. Under the BnB, drugs are dispensed to barangay residents with the
aid of qualified service providers. GMA 50 is provided through service outlets in the
Unified Local Health System (ULHS) hospitals.
2. Monitoring and Testing of Water Potability.
Potability Regular monitoring and testing of water
quality is aimed at preventing and minimizing the incidence of water-borne diseases. It
involves technical assistance in the detection of unsafe water and advocacy on the
hazards it may cause to end-users.

P. SecurityoverPropertyRightsfortheVulnerableandMarginalized
1. Implementation of the De Soto Property Rights Program in the Region. This is a national
project to improve access by urban poor residing in government lands to capital by
providing them rights over the lands where their houses are built. The rights can be used
as collateral for loan transactions by the concerned families.
2. Delineation, titling of ancestral domains/lands.
domains/lands Determination of land areas owned by
Indigenous Peoples (IPs) under the concept of native title as well as their categorization
into Certificate of Ancestral Domain Claims (CADCs) and Certificate of Ancestral Domain
Titles (CADTs) has to be undertaken for the promotion of their development as distinct
sector of society. Delineation of seven (7) CADC areas in the region is targeted for
completion.

47

3.

Q.

Ancestral Domain Development Program. The project aims to fast-track the delineation
and processing of ancestral domain titles of indigenous communities and assist them in
fully harnessing the benefits that may be generated in their domains. The project shall
also include the establishment of an IP cultural center in each of the provinces where
studies of past cultural practices shall be encouraged.

ExecutiveandLegislativeAgenda
1. Establishment of a Regional Budget Allocation Fund (RBAF) in which the Regional
Development Council (RDC) III shall be given authority to allocate funds for provinces
infrastructure and other projects for the socially-disadvantaged under the existing
budgeting processes.
2. Creation of a special court to specifically and strictly monitor the enforcement or nonenforcement of the participation provisions of the Local Government Code in the
preparation of Comprehensive Land Use Plans (CLUPs) and Comprehensive Development
Plans (CDPs). Consolidation of local plans and investment programs shall be tracked to
ensure coherence of development challenge definition, objective and target-setting and
project identification and relevance of intervention for linkage and relevance of plans and
for greater effective results.
3. Institutionalization
Institutionalization of a Public Reporting System for Revenue Collection and Public Fund
Spending down to the community level.
4. Creation of a Regional Ombudsman to track performance and conduct of public officials
and employees.

48

Chapter5: MonitoringPlan
Implementation
Rationale.
Rationale Monitoring the implementation of the 2011-2016 Central Luzon Regional
Development Plan shall focus on answering on a regular or annual basis the following
questions:
1. What are the indicators that can measure the attainment of each development
objective?
2. What projects identified in the investment program have been funded?
3. Of the funded projects, what projects were completed within the year?
4. What are the development objectives being addressed by each implemented project and
what are the indicators that measure the attainment of the objectives?
5. Are there changes in the development indicators before the planning period up to latest
available data sets?
6. What is the status of each unfunded project? What is the implication to the overall plan
objective if such projects are not funded and implemented?
Clearly these questions cannot be answered from the existing Regional project Monitoring
System alone although the reports generated from the RPMES can be valuable inputs to
determining the plans implementation status.
It should be noted that in any monitoring systems, there is a need to determine the baseline
conditions using an indicator system that should be able to measure in the future whether
the development objectives are being met or not. This set of indicators shall be different
from project-based implementation performance indicators. The succeeding section
presents the indicator system that shall adopted for the monitoring of the 2011-2016 CLRDP.
20112011-2016 CLCL-RDP . The following indicator system is an attempt to measure the
attainment of the adopted development objectives using existing secondary datasets that
are readily available in national government agencies, statistics generating offices and local
government units. It does not propose any indicator that shall require primary data
gathering.
There are two sets of indicators: the first set being those pertaining to the attainment of the
long term vision and its elements; while the second set tries to capture performance on the
medium term development objectives. Thus, each objective has a corresponding set of
indicators. The proposed indicator system is summarized in the following Table of Indicators:

49

Table 1: CLCL-RDP Indicators

Plan component
Vision and Elements
Central Luzon: A Sustainable
and Caring Global Gateway
through Private-Public
Partnership and Growth for All

Development Objectives
1.Minimize natural disaster
casualties and economic losses
2.Improve land transport access
from the urban core to the east
and west coasts
3. Increase the level of service of
strategic roads
4. Integrate the three modes of
transportation (land, air and
sea)
5. Upgrade tourism
establishments
6. Develop a regional tourism hub
in the Clark-Subic area
7. Improve the profitability and
sustainability of MSMEs
8. Ensure that mining operations
are environment-friendly
9. Make food cheap and plentiful
10.
Increase rural farming
and fisherfolk family incomes
11.
Recover lahar-covered
areas for productive uses
12. Improve basic education
achievement rates
13. Improve access to health
services
14. Support the development of
world-oriented higher
education institutions

Proposed Indicator

Source

Frequency

Poverty Incidence
% of low income families
Foreign Direct Investments
Per Capita GRDP
PhP spending per hectare of
critical watershed
GRDP Growth Rates and GVA
Shares

FIES, NSO
FIES
BSP
NSCB, NSO
DENR/DBM

Every 3 years
Every 3 years
Annual
Annual
Annual

NSCB National
Income Accounts

Annual

Disaster impacts

RDRRMC

Annual

Ratio of length of paved road

to total road length

DPWH

Annual

Average travel time in

strategic routes

DPWH

Annual

Tourists arrivals
Tourism receipts
Share of CL to national tourist
arrivals and receipts
Jobs generated

DOT

Annual

DOT

Annual

DTI, SMEDCouncil

Annual

Value of mineral production

MGB Reports

Annual

Share of food expenses to tot

al expenses
Agri production data
Farming Family income
Fishing family incomes
Hectares of agricultural
production area in Pinatubo
affected areas
Achievement Rates
Elementary or Secondary
participation rates, cohort
survival rates
Health status indicators

FIES

Three years

FIES

Three years

Census of
Agriculture

Three years

DepEd

Annual

DOH

Annual

CHED/PRC

Annual

Passing rates in PRC Exams

50

Annex1

ThePlanningEnvironment

I. Location,LandAreaandTopography
Central Luzon is found immediately north of the National Capital Region and has recently
distinguished itself as the only region that has east (Pacific Ocean) and west (China Sea)
coasts.

CARABALLO
SIERRA MADRE

Pacific Ocean
ZAMBALES MOUNTAINS

China Sea
Manila Bay

Figure 3.
3. Satellite image of Central Luzon

(downloaded from google.com)

With the inclusion of the Province of Aurora in 2002 through Executive Order No. 103, it is
now composed of seven provinces and two highly urbanized cities with a total land area of
2,147,036 hectares or about 7 percent of the countrys total land area. Forty five percent of
this is classified forest lands while the rest are certified alienable and disposable lands. The
largest province is Nueva Ecija (528,433 has), while the smallest is Bataan (137,296 has).
Its topography is marked by an extensive central plain surrounded by three (3) mountain
ranges (Sierra Madre on the east, Caraballo on the north and Zambales mountains on the
west) and the Manila Bay on the southwest. At the middle of the plains lies the majestic Mt.
Arayat.

51

The region has a long coastline and only the provinces of Tarlac and Nueva Ecija are
landlocked. Several municipalities in the province of Bulacan and Pampanga with coasts
along Manila Bay experience regular tidal flooding that are often exacerbated by high
intensity, short duration rainfall occurrences. The same areas contribute to freshwater fish
production of the region and of the country since extensive fishponds are operating here.
This is also true in low-lying and flood-prone areas in other provinces where mangrove and
nipa areas are used for the construction of fishponds.

II. Population
Central Luzons population as of 2010 is estimated at 10, 159,300. By 2015 the population
is projected to increase to 11,124,400, accounting for 11 percent of the total population of
the Philippines and one of the most populous regions.
The annual population growth rate between the years 2000 and 2007 was 2.36 percent
which is slower than the 3.2 percent annual increase registered between 1995 and 2000.
The population is relatively young with those aged 15 years and below comprising more than
one-third or 35.3percent of the population in 2000.
Central Luzon is rapidly urbanizing. In 2000, about 4.86 million or 60.5 percent of the
population were living in barangays classified as urban, a marked increase from 41.8
percent urbanization recorded in 1980. Such high urban growth, poses strains in the
availability of quality critical basic services and resources such as water, electricity,
sanitation, waste management, public health, services, education and environment.

III. FamilyIncomeandPovertyIncidence
Fig. 4 . Incidence of Poor Population (%) in Central Luzon
40
35
30
25
20
15
10
5
0

35.5
29.2
16.8

1991

1994

1997

Incidence

21.4

2000

20.7

17.5

2003

2006

17.75

MDG Target

2015

Source: National Statistics Office

On the average incomes of families have risen, but income distribution deteriorated between
2003 and 2006 with the Gini coefficient rising from 0.3515 to 0.3994.
52

The share of income of families in the highest decile was more than thirteen times the share
of those in the poorest decile.
On the whole, significant progress has been made in the fight against poverty in the region.
The proportion of the population classified as poor decreased from 35.5 percent in 1991 to
15.3 percent in 2009 (NSCB). With the exception of the years 2000 and 2006 the incidence
of poor population steadily declined. In 2006, NSCB estimated that 26.6 percent of children,
16.5 percent of youth, 18.9 percent of women, 20.2 percent of farmers, 23.9 percent of
fishermen are living in poverty.
The Millennium Development Goal (MDG) target of halving the incidence of poor population
by 2015 or lowering the incidence to 17.75 percent has a very high probability of being
achieved.
Compared to the other regions, Central Luzon has the second lowest incidence of poor
population. Bataan, Pampanga, and Bulacan belong to the top seven provinces with the
least incidences of poor. However, the absolute number of poor remains sizeable at
1,914,590 persons as of 2006 belonging to 320,109 families.
Gains are uneven within the region. More than 70 percent of the poor live in Nueva Ecija,
Bulacan and Tarlac.

IV. GrossRegionalDomesticProduct
From 2004-2009 Central Luzons economic output grew from P381.4 to P 576.6 billion. In
real terms, GRDP expanded by 16.2 percent with an annual average growth of 2.9 percent.
The main contributor was the services sector, which grew annually at an average of 4.7
percent. All sub-sectors of services expanded led by transportation, communication and
storage (TCS), finance and the ownership of dwellings and real estate (ODRE) industries.
These three sub-sectors expanded more than six percent during the period. Growth in the
TCS can be attributed to the growth of land transportation and mobile phone industries.
Figure 5. GRDP Growth Rate (%) : Central Luzon, 1985 = 100
10
5.9

5
2

2.7

3.8

'03-'04

'04-'05

'05-'06

'06-'07

'07-'08

-1.4
'07-'08

-5
Source: National Statistics Office

53

The expansion of ODRE in particular, and the services sector as a whole may also be
attributed to spending of families with OFW relatives. Based on the National Statistics Office
survey, the number Overseas Filipino Workers from Central Luzon has more than doubled
since 2003. As of 2009, it was estimated that 14.7 percent of countrys Overseas Filipino
Workers were from the region. This could explain the rise in the number of banks and levels
of bank deposits.
Industry sector accounted for 35.6 percent of GRDP but its roller-coaster performance
resulted in only 1.1 percent average annual growth during the period. The manufacturing
sector is the largest industry with a share of 23% of Central Luzons total GDP in 2009.
Mostly micro and small scale establishments, manufacturing is dominated by food
processing; electrical and electronic components and equipment; furniture; and garments.
The manufacturing industry is highly vulnerable to external shocks hence its performance is
inconstant. Construction and electricity gas and water sectors posted modest growths but
these were not enough to offset the slump in manufacturing and mining sub- sectors. Mining
and quarrying industry contribution to the regions economy remains minuscule despite the
regions rich mineral deposits. Since 2004, industry sector has been overtaken by services in
its share to regional GDP.
Agriculture managed a 2.8 percent GVA increase despite the onslaught of several typhoons
and unabated conversion of agricultural lands to other uses. Palay production consistently
increased as a result of increasing use of high yielding varieties and offsetting decreases in
livestock and fishery production. The region continued to top other regions in the production
of onion, hog and poultry.
In 2009 Central Luzon contributed 8.1 percent to the total GDP of the country, enough to
maintain its rank as the third largest contributor among the regions. However the regions
contribution has slipped from 8.6 percent in 2004 due to contracting contributions of
industry and services sector. This occurred despite the presence of a network of special
economic zones and Freeport zones in the region composed of Subic Bay Freeport Zone,
Clark Freeport Zone, the recently converted Freeport Area of Bataan (from the Bataan
Economic Zone), Luisita Industrial Park, Hermosa Industrial Estate, Bataan Petrochemical
Complex, the Limay Military Industrial Special Economic Zone and a host of smaller private
industrial estates in Bulacan and Pampanga. The Aurora Pacific Economic Zone (APECO) is a
recent addition to this network. Years have passed since the establishment of most of these
economic zones and although some have attracted locators that opened up thousands of
jobs, there remains large tracts of lands within the proclaimed areas that remain unoccupied
and undeveloped.
Overall, the region did not reach the growth targets due to the lackluster performance of the
industry sector and lesser than expected growth of the services sector. Table 2 summarizes
the target and actual growth rates in GRDP and Gross Value Added (GVA) in the three major
industry groups, Agriculture, Fishery and Forestry (AFF), Industry and Services and reasons
for attainment/non-attainment of plan targets.

54

Table 2. GRDP/GVA Actual Growth Rates vs Plan Targets

Central Luzon Region, 20042004-2009.
2009
Gross Value Added (GVA)
GRDP

Agriculture,
Fishery and
Forestry

Growth Target (%)

4.8

Actual Growth (%)

2.0

P er io d

2003-2004

2004-2005

Reasons for
Deviations

Services

3.7

5.0

5.4

1.1

-0.8

5.5

Political instability pulls down investments.

Typhoons Violeta, Winnie and Yoyong swept though the region during the latter part of
the year and adversely affected the livestock sector, particularty pulling down by
carabao, cattle and hog production.
Growth of TCS, trade and finance

Growth Target (%)

5.1

4.0

5.4

5.8

Actual Growth (%)

2.7

3.8

0.1

4.7

Reasons for
Deviations

Slower growth for rice and decreases in the livestock and commercial fishery sectors
offset the gains made in the other subsectors causing the agriculture sector to achieve
a lower than expected growth for the year.
Political instability continue to pull down investments

Growth Target (%)

6.0

4.1

6.8

6.4

Actual Growth (%)

4.4

4.8

2.8

5.8

Reasons for
Deviations

On going construction of SCTEX, Casecnan, and Subic Bay Port pushep up

construction.
The DA attributes the better-than expected growth to better weather conditions that had
growths in the regions major products palay, swine, and poultry and aquaculturepushed up ahead of the previous years level.
Lower than previous year investment yields results in low GVA for manufacturing.

2005-2006

Growth Target (%)

6.5

4.3

7.6

6.9

Actual Growth (%)

5.9

6.6

3.4

7.8

Reasons for
Deviations

Area expansion in the grains subsector because of better weather condition, better
consumer demand and government interventions in the livestock and fishery
subsectors helped sector growth exceed target.
On-going construction of SCTEX, Casecnan, and Subic Bay Port contributed to the
growth of the construction sector.
Further decrease in investment dampens manufacturing.

2006-2007
Growth Target (%)

6.1

4.6

4.5

6.9

Actual Growth (%)

3.7

2.9

5.1

3.1

Reasons for
Deviation

Palay production for 2008 posted a growth of 3,014,347 MT, 2.46 percent increase from
the previous years 2,942,113 MT. The overall corn production of the region for the
year 2008 posted 13.76 percent from 198.590 MT to 225,915 MT. Total fish production
for 2008 increased by 6 percent.
The number of approved building permits issued in the region increased by 60.5 % in
2008 compared to 2007. Housing loans availed though PAGIBIG likewise increased
significantly between 2007 and 2008 by 177.2 percent.
Construction of SCTEX, Casecnan, and Subic Bay Port

2007-2008

Growth Target (%)

2008-2009

Industry

Actual Growth (%)

Reasons for
Deviation

6.5

5.2

4.7

7.5

-1.4

-2.1

-3.8

1.1

The region took hit from the weather disturbances -- particularly from typhoons Ondoy
and Pepeng -- that occurred during the year and the global recession that has the
Philippines trading partners cutting on their demand for our export products.

Source: NSCB

55

V. Inflation
From 2004 to 2010, the single-digit annual average inflation targets were attained except in
2008 when inflation reached 11.09 percent mainly due to rapid rise in the price of rice and
fuel. The price of regular milled rice started rising in April 2008 and by June it rose by 150
percent due to lack of supply. Faster price increases of commodities under housing and
repairs and fuel, light and water groups contributed to the inflation for 2008 reaching double
digit. The price of rice started to go down in September of 2008 and stabilized thereafter.
Aside from overall price stability, easing oil prices contributed to the inflation rate dropping to
3.8 percent in 2009.
Table 3 : Inflation Rate by Major Commodity Group: Central Luzon, 20042004-2009







COMMODITY
GROUP

2004

2005

2006

2007

2008

2009

All Commodity

6.6

6.8

2.8

2.6

11.09

3.8

Food, beverage and

Tobacco

6.8

6.4

5.6

2.8

12.6

5.9

Clothing

2.1

4.2

2.5

1.6

3.1

2.8

Housing and Repairs

2.8

1.8

3.4

3.4

16.5

2.8

Fuel Light and Water

9.0

12.3

10.8

1.8

8.5

-7.7

Services

11.2

11.4

8.1

2.8

8.3

4.3

Miscellaneous

2.2

3.3

2.9

1.1

3.5

2.9

Source: National Statistics Office

VI. EmploymentandLaborMigration
According to the National Statistics Office in 2009, of the estimated 6.53 million population
15 years and over, 3.96 million were in the labor force. This places the labor force
participation rate at 60.6 percent, a little higher than the 2008s 60.3 percent. Males with a
participation rate of about 77 percent comprise the bulk (63 %) of the labor force. The
participation rate of females was about 44 percent.
Of the 3.96 million persons in the labor force in Central Luzon in 2009, about 90.8 percent
were employed, corresponding to 107,000 new jobs or 3 percent increase from the previous
year. Over half or 59 percent of employed were in the service sector, 22 percent in the
agricultural sector and 19 percent, and 15 percent in the industry sector. Jobs provided by
the services sector seemed to favor females. Female employment rate was higher at 91.5
percent compared to 90.1 percent for males.
56

Table 4 . Household Population 15 Years Old and Over by Employment Status: Central Luzon:
2006 - 2009
Indicator
2006
2007
2008
2009
HH Population 15 years old and over
Labor Force Participation Rate (%)
Labor Force
Employed (%)
Employed (No.)
Unemployed (%)
Unemployed (No.)
Underemployed (%)
Underemployed (No.)

6,091
60.5
3687
89.4
3298
11.6
389
10.5
370

6,227
60.8
3788
90.0
3410
10.0
379
10.3
350

6,368
60.3
3,840
90.8
3,485
9.2
355
8.7
303

6,531
60.6
3,956
90.8
3,592
9.2
364
7.8
281

Souce: National Statistics Office

Data from 2006 show that unemployment rate is on a decreasing trend even in 2008 and
2009, when the effects of the global financial crisis hit the country. Nevertheless,
unemployment remains a very serious problem because the 9.2 percent unemployment rate
in 2009 converted to actual number was 354,000 jobless persons in Central Luzon. At the
same time, it should be noted that the employment creation program of the government that
was part of the Economic Resiliency Plan could partly explain the growth in employment
particularly in 2009. Thus, was not largely due to new investments, which provide more
sustainable employment.
Underemployment both in terms of proportion and magnitude maintained its declining trend
suggesting improving utilization of labor.
Domestic and international migration is usually resorted to in response to difficulties in
finding employment in the home communities. Most parts of Central Luzon are domestic
migration destinations while at the same time a source of international migrants (Table 5).
Crude estimates show that using the rate of natural increase registered between 2000 and
2005 of 19 for every thousand population, the natural increase of Central Luzons population
would have been 550,000 less than the population count in 2007. More than half of the
migration went into the province of Bulacan (about 300,000 persons).
Table 5. Profile of Local and Overseas Filipino Domestic Workers
Item

Age
Education level
Work experience
Originating region

Local Domestic Workers

1524
Elementary school graduates
Little prior work experience
Visayas, Bicol, Southern Tagalog

Overseas Domestic Workers

2534
High school and college graduates
Broad range of work experience
NCR, Southern Tagalog, Ilocos,
Cagayan Valley, Central Luzon,
Socsargen, Western Visayas

NCR = national capital region.

Source: Sayre, 2005.

57

Several studies have shown that the extensive domestic and international migration from the
Philippines has consequences for the migrants and their families, as well as for the economy
at large. Migrants pay a high personal price because they do not get to see their children,
spouses and families. Long periods of absence may spur infidelities and separation (Edillon:
2007:32) and also contribute to the spread of sexually transmitted infections. Children are
deprived of their parents and tend to perform worse at school, particularly in the absence of
their mothers (Batistella and Conaco, 1996).

Table 6 . Number of Employed by Industry

Central Luzon: 2008 2009
2008
SECTOR/ INDUSTRY

2009

3,485

3592

737
55

720
54

6
411
16
246

6
401
21
258

771

812

131
379
38
94
150
113
46
119
171
1

134
398
40
102
152
122
468
128
185
1

ALL INDUSTRIES

AGRICULTURE, FISHERY AND FORESTRY

Agriculture, Hunting and Forestry
Fishing
INDUSTRY
Mining and Quarrying
Manufacturing
Electricity, Gas and Water Supply
Construction
SERVICES
Wholesale and Retail Trade, Repair of Motor Vehicles, Motor
Cycles and Personal and HH Goods
Hotels and Restaurants
Transport, Storage and Communications
Financial Intermediation
Real Estate, Renting and Business Activities
Public Administration and Defense, Compulsory Social Security
Education
Health and Social Work
Other Community, Social and Personal Service Activities
Private Households with Employed Persons
Extra-Territorial Organizations and Bodies
Source: National Statistics Office

Overseas migration has likewise implications to society as a whole. The Philippine

economys growth and ability to withstand external shocks have been partly attributed to
transfers from abroad that represent about 10 % of gross domestic product (in 2007).
However, a risk of brain drain and care drain resulting from migration of educated health
professionals exacerbates existing problems of the health system in the Philippines. This in
turn may compromise the quality of human capital needed to sustain economic development
that may be compounded by the poor academic performance resulting from parents
absence thereby weakening the future human capital of the country.
Some studies stress the multiplier effect, as international remittances increase demand for
goods and services (ADB, 2004), but others find that remittances have little impact on
improving poverty levels because they are spent mainly on consumption rather than in
income generating activities (Opiniano, 2004). There are also studies that claim that
58

extensive international remittances may present moral hazard to the economy, as the
incentive for remittance dependent families to participate in the economy goes down (Chami,
et.al. in Opiniano, 2004).

VII. HumanDevelopment
By and large Central Luzons state of
human development has advanced
reasonably. As Table 9 shows, the Human
Development Index (HDI) in all the seven
provinces improved. Between 1994 and
2000, the average rise in under the Human
Development in the region registered
higher than the national average
suggesting that human development is
faster in the region compared to other
regions.
However, while Central Luzon advanced
fairly well in some indicators, in others,
movements were almost negligible or even
backwards. At the same time, a number of
statistics available at lower disaggregation
reflect wide disparities of growth within the
region.

Table 7.
7. Human Development
Index,1994,1997,2000

Province

1994

1997

2000

0.627

0.629

0.656

Aurora

0.567

0.591

0.623

Bataan

0.653

0.727

0.746

Bulacan

0.727

0.702

0.760

Nueva Ecija

0.626

0.605

0.635

Pampanga

0.664

0.648

0.665

Tarlac

0.581

0.608

0.605

Zambales

0.586

0.601

0.622

Philippines
Central Luzon

Source: NSCB

A. HealthandNutrition
Infant and Child Mortality Rates have declined significantly. Infant Mortality Rate (IMR) was
reduced from 45 per 1000 live births in 1990 to 24 in 2008. Mortality rate among children
below five years old (U-5 MR)was also reduced from 61 per 1000 children aged les than 5
years old to 29 in 2008. The trend suggests the region will very likely attain the Millennium
Development Goal (MDG) target of reducing mortality rate to 20 deaths per 1000 under-5
children.
Meanwhile, Maternal Mortality Rate (MMR) based on the administrative records of the
Department of Health (DOH) regional office from 1990 to 2009 is on a declining trend albeit
at a very much slower pace than IMR and U-5 Mortality rates. In addition, MMR is highly
variable over short periods such as five years. From 2005 to 2009, for instance, MMR rose
from 11 in 2005 to 53 in 2008 and down to 10 in 2009. The figures may be attributed to
data deficiencies but may also reflect that only a little over half (56%) of births are delivered
in health facilities (2008 National Demographic and Health Survey (NDHS) and about one in
four pregnant women is nutritionally at-risk. Given the current slow rate of MMR decline the
MDG target for MMR is unlikely to be reached.

59

The ten most frequent causes of deaths include both non-communicable and communicable
diseases such as diseases of the heart, cancer, and pneumonia. Over the years, deaths due
to communicable diseases have lessened as a result of the expansive immunization and
other programs of the DOH. Even so, pulmonary tuberculosis, which remains a major cause
of death, is still a serious concern.
The ten leading causes of morbidity reported (2003-2008) included both communicable and
non-communicable diseases. On top are Acute Respiratory Infection (ARI), diarrhea,
hypertension, bronchitis or bronchiolitis. The high incidence of dengue cases in the region is
still a major challenge. More than 6,000 cases of dengue were reported from January to
October 2010. This is doubly higher than the same period in 2009.
The 2008 Food and Nutrition Research Institute (FNRI) National Nutrition Survey results
revealed that among children, 0-5 years old, 20.2 % are underweight and 18.9 % are
underheight. Central Luzon had the lowest percentage of underheight and second with
lowest underweight among the 17 regions. Prevalence of underweight and underheight
children 0-5 was lower in Central Luzon than the national averages at 26.2% and 27.9%
respectively.
Comparing the provinces, Aurora, has twice as much percentage of underweight children
than Pampanga. Also, Aurora and Nueva Ecijas proportion of underweight and underheight
are higher than the regional average. Significantly, for both indicators, the 2008 levels are
higher than the 2005 levels suggesting worsening nutritional status.
The differences in nutritional status among the provinces are even more evident among 6-10
year old children. In Aurora, close to half are underweight while there are less than twenty
percent in Bulacan, Bataan, Nueva Ecija, Pampanga, and Tarlac.
Underweight lactating mothers and nutritionally at-risk pregnant women are common. In
2008, 17.6 percent of lactating mothers are underweight whilst 24.4 percent of pregnant
women are nutritionally at-risk.

B. BasicEducation
Based on the 2003 Functional Literacy,
Education and Mass Media Survey
(FLEMMS), Central Luzons basic and
functional literacy rate stood at 96.9 and
86.9 percent respectively. At both levels of
literacy, the region exceeded the national
average and is higher than most regions.
Females surpass males for both simple
and functional literacy.

Table 8.
8. Basic and Functional Literacy Rates:
Central Luzon, 1989, 1994, 2003
Year

Basic Literacy

Functional
Literacy

1989

93.7

84.1

1994
96.3
87.3
The second MDG of achieving universal
2003
96.9
86.9
primary education will not be attained if
the current trend in Participation Rate Source: FLEMMS 1989,1994,2003
reported by the Department of Education
(DepEd ) will not be reversed right away. Elementary Participation Rate in SY 2008-2009
60

stood at 89.53 percent the lowest since SY 1990-1991. Also in 2008-2009, Cohort Survival
Rate was 72.94 percent, which means that out of 100 Grade 1 students, only 73 reach
Grade 6. At the Secondary level, participation rate in SY 2008 2009 was alarmingly low at
65.52 percent while the Cohort Survival Rate was 64.95%. Both indicators are below their
levels in SY 2000- 2001.
Despite the policy on free education, increasing cost of education related expenses and lack
of personal interest, inability to cope with schoolwork, are said to be the main causes of
children not attending school or dropping-out of school. The Department of Social Welfare
and Development (DSWD) estimated that as much as 20 percent of households have
working children ages 5-17 years old in order to augment family income. Many of these
children are not only deprived of education and proper nutrition but are exposed to abuses
and hazards.
The
various
programs
aimed at improving learning
competencies have not
raised the competency
scores of students at
acceptable levels.
Table 8 shows the National
Achievement Test (NAT)
results of Grade VI and
Fourth Year High School
students in the region in
Math, English and Science.
At both levels, scores
obtained by students were
way below the cut-off score
of 75 percent which means
that students are not
acquiring the necessary
competencies for Math,
English and Science.

Table 9.
9. National Achievement Test Results (%): Central
Central
Luzon,
Luzon, SY 2005 -2006 to SY 2008 - 2009
LEVEL/
SUBJECT

20042005

20052006

20062007

20072008

20082009

Math

53.84

50.96

63.28

66.99

71.91

English

50.77

52.67

63.31

65.05

64.6

Science

55.25

45.57

55.93

63.30

65.67

Math

48.19

45.32

40.86

English

49.70

45.30

50.81

Grade 6

4th Year H.S.

Science
37.64
35.94
42.91
The poor performance of
the students may be
attributed to persistent Source: Department of Education 3
shortages of classrooms,
furniture, teachers and textbooks in many public schools. Although not reflected in regional
averages, wide disparities at the school levels are common. In addition to shortages, a large
number of Grade I enrolees did not have early childhood education. Being ill-prepared to
absorb their lessons, they are consequently left behind. Such is carried through over the
years that could explain why the scores at the secondary level are noticeably lower than the
elementary level.

Through the management of the Technical Education and Skills Development Authority
(TESDA), Central Luzon realized significant gains in the provision of technical and vocational
education.
61

C.

TechnicalVocationalEducationandTraining

The region achieved modest accomplishments in the last five years in improving the access
and quality of technical vocational education and training.
Total TVET enrollment from 2006 2007 reached 684,673 while graduates reached
534,521. Community-based (ComB) training represents 41.0 percent of the total graduates
or a total of 219,297 graduates. Community based training graduates dropped by half in
2008 due to the upgraded standard set by the TESDA region 3 for the program to have
technology content (at least one core competency) in order to respond to the needs of the
priority industries. The program is gradually recovering with graduates numbering 41,495 in
2010, seventy-nine (79.0 %) of the 2007 total graduates. Enterprise-based training (EBT)
programs meanwhile accounted for only 5.1 percent of the total graduates. There is a need
to intensify efforts at convincing industries in the region to support this program. As of 2010,
only 39 firms out of more or less 3,600 industries across the Region are actively participating
in the EBT.
The number of registered Technical Vocational Institutions (TVIs) has considerably increased,
from only 89 in 2004 to 477 as of 2010. Of the total, 454 are private TVIs located mosly in
Bulacan and Pampanga. Aurora province has the least number with only six TVIs.
Around 41 percent (217,215) of the 534,521 graduates took competency assessment with
an average certification rate of 73 percent. The figure is 11 percent below the national
TESDA target of 100 percent of all graduates of registered programs undergoing competency
assessment.
To assess employability of TVET students, graduates are monitored by the TESDA. Based on
graduates from 2008 2010, the regions employment averaged 38.2 percent. The figure is
almost 17 percent below the national target of 55 percent. To improve employability of
graduates and ensure that trainings remain relevant, TESDA made an inventory of highly indemand skills in the region.

D. Housing
The Housing and Urban Development Coordinating Council (HUDCC) estimated the regions
housing need from 2005 to 2010 at 461,368 units.
Many of the families living in substandard houses are also those located in areas vulnerable
to flooding, landslides and other hazards, hence the need to have decent housing is more
urgent. Moreover, substantial resources and time of the DSWD, Local Government Units
(LGUs), Non-Government Organizations (NGOs) and Peoples Organizations (POs) are taken
up from year to year by the task of relief and rehabilitation of families of victims of disasters.
62

E. VulnerableSectors
Central Luzons state of human development has certainly gain notable advancement, yet
there are indisputably still many people being left behind. For the next six years, programs,
projects and activities shall deliberately be designed such that the poorest and the most
vulnerable groups are benefited.

Table 10:
10: Vulnerable Sectors in Central Luzon
Sector/Group
Sector/Group
Poor
Unemployed
Families at risk to
disaster
Working children
Indigenous Peoples

Others groups

Estimated Number
320,109 poor families involving 1,914590 persons
65,746 subsistence or food poor families involving
422,438 individuals
(2006, NSCB)
9.0% or 369,000 individuals in January 2010 (NSO)
322,144 families in 1,277 barangays from 102
municipalities (DSWD)
262,009 children 5-17 years old
35,919 families or 195,867 individuals (2009,
NCIP)
undernourished children and youth, out-of-school
youth, persons with disabilities, senior citizens,
women with poor maternal health, persons with
disabilities, OFW s

VIII.Agriculture
Central Luzon continues to be one of the countrys agricultural pillars, ranking second
following Cavite-Laguna-Batangas-Rizal-Quezon (CALABARZON) in contribution to the Gross
Value Added (GVA) in Agriculture, Fishery and Forestry (AFF) with share of 10 percent.
Said contribution is made more significant by the fact that the region ranks among the top
producers of the country for many of its agricultural and fishery products.
The region in fact leads in the production of its staple, i.e. rice, and in onion and okra
production. The latter is now also being exported apart from it being sold locally.
Central Luzon has the biggest area devoted to rice production and accounts for about 21
percent of the national irrigated palay output. Farm productivity or yield per hectare while
above national average [4.22 metric tons (MT) for the region as against 3.59 national
average in 2009] has shown decline from the 2007 level. The province of Nueva Ecija
contributes nearly half (48%) of the regions palay output.
Onion production in the region tops all other regional production with share of the national
output at 57 percent. The latter amounts to about 73,000 MT in 2009 produced from an
area of about 8,000 hectares mainly in Nueva Ecija. Although yield per hectare of onion is
above national average, this has shown decline in the 2005-2009 period.

63

Of the other priority vegetables, okra production with share of 36 percent of the national
output takes the lead in Central Luzon. Tarlac Province is exporting okra to Japan.
Central Luzon has the largest area among regions planted to carabao mango at about
25,000 hectares and the biggest number of bearing trees. This makes the region the third
largest producer of the fruit in the country with production volume accounting for about eight
percent of the national output. Nevertheless, production would have been higher had yield
per hectare not been declining. The region in fact has one of the lowest yields per bearing
tree among regions.
Aside from the abovementioned, Region 3 is also a major producer being in the top five or
ten among regions of tomato, garlic, eggplant, peanut, mongo and camote (sweet potato).
The region plays a major role in fish supply as it ranks fourth in aquaculture production and
fifth in inland municipal fishing. Pampanga shares bulk of the regions aquaculture produce
with about 67 percent generated in the province.
In livestock and poultry, Central Luzon is a dominant player as it leads in chicken with a 34
percent share of the national output, second in hog with share of 15 percent, third in duck
with a 29 percent share, second in chicken egg supply with 19 percent and the largest share
in duck egg supply with 24 percent.

IX. IndustryandServices
Export is marked by negative growth from 2005-2009 from a high of 43 growth rate in 2004,
though said negative growth has been on the decline.
Investments bounced back in 2009 as the region registered positive growth during the year
following two consecutive negative growth from 2006-2007. The sluggish and poor showing
of both investments and exports is a result of the financial crunch and other crises the world
market went through in the last five years.
Pampanga and Zambales account for bulk of exports and investments in the region. Export
winners are electronics, machinery and transport equipment and garments/textile.
Region 3 ranks third in share of Micro- Small and Medium-Enterprises (MSMEs) in the entire
country. The sector accounts for 99 percent of the total number of establishments in the
region, with bulk of MSME establishments in the trading and services business.
Services account for bulk of Central Luzons economy with 40.9 percent share in 2009.
Industry follows this sector with share in 2009 of 34.7 percent. Relative to the national
economy, Central Luzon ranks third in the country in terms of contribution to the Gross Value
Added (GVA) in the industry sector while fifth in the services sector following National Capital
Region (NCR), Cavite-Laguna-Batangas-Rizal-Quezon (CALABARZON), Central Visayas and
Western Visayas.
64

In the services sector, the region is in the top three among regions in the Transportation,
Communication and Storage (TCS), Owners Dwelling and Real Estate (ODRE) and
government services sub-sectors. In terms, nonetheless, of share to the regions GVA in
services, the top three sub-sectors are Trade, TCS, and Private Services in that order.

X. Tourism
Visitor arrival has been increasing at an average annual rate of 8.5 percent over the last 10
years. The bulk of the regional visitors converge in Zambales and Pampanga (59% and 23%
in 2009, respectively). Domestic or local tourists make up for a significant share (73%) of
the regions visitors.


XI. Mining
Mining areas or those covered with mining tenements cover 44, 235 hectares or just two
percent of the regions total land area. The province of Zambales accounts for the largest
area 59 percent of total area with approved mining tenements currently mined in the
region. One of the priority projects in fact already in operation is in Zambales: the Acoje
Nickel Project of Crau-Fil Asian Mining/Rusina.
Mining contributes about 0.1 percent to the annual GVA in industry in the last decade.
Employment share is 0.2 percent. Notwithstanding this share, Region 3, particularly
Zambales, has been identified as one of 12 areas exhibiting strong mineral potential.
As of August 2009, there were 54 approved mining applications distributed as follows:
Mineral Production Sharing Agreement (MPSA) 36, exploration permit three, and
industrial permit 15. Small scale mining is also carried out in all provinces covering about
one thousand hectares, with the biggest slice accounted for by Nueva Ecija. Small scale
mining primarily involves quarrying of sand and gravel.
While nickel production shows fluctuation as it follows demand in the world market,
production of non-metallic minerals (e.g. sand and gravel, salt, limestone) is on the uptrend
with growth in value averaging 10 percent.

XII.LandTransportationandCirculation
Circulation of goods and people within and outside the region is facilitated by a combination
of roads, airports and seaports. The construction of a railway system from Clark to and from
the National Capital Region is in its initial stage of implementation. The rehabilitation of the
Northrail is a necessity in view of the fast urbanization of southwestern Central Luzon
65

practically merging the National Capital Region and Central Luzon. The operation of the
Northrail is significant at the national level in view of the very active trans-national exchanges
unfolding before these two regions.
The most important north-south road connection between NCR and all regions north are the
Manila North Road (MNR) or MacArthur Highway and the Cagayan Valley Road (CVR) or the
Daang Maharlika. These two serve as the backbone of the road network of Luzon. MNR
originates from NCR, traverses
Figure 6.
6. Road Development in Aurora, 2009
the western half of Bulacan,
passes through Pampanga and
Tarlac, all the way to the
provinces of Pangasinan, Ilocos
Sur and Ilocos Norte in Region I.
On the other hand, CVR
originates
from
MNR
in
Guiguinto, Bulacan, then runs
through the western half of this
province, cutting through Nueva
Ecija before traversing the
length of Cagayan Valley
Region. These road links
contribute to the primacy of
Manila.
Source: DPWH Annual Report 2009
These two are supplemented by expressways that provide fast, continuous and reliable
north-south travel. The first expressway that was established in the Philippines is the North
Luzon Expressway (NLEX) in the 70s. It provided an alternative shorter and lesser travel time
between NCR and Central Luzon. The Bataan Expressway was constructed traversing the
length of Bataan Peninsula to
Figure 7.
7. Section of Manila North Road Improvement
support the operations of the
2009
then Bataan Export Processing
Zone, the countrys first. In
March 2005, the NLEx was
rehabilitated in view of the
corridor-type of development
generated along the whole
stretch of the MNR (McArthur
Highway).
The NLEx was
supplemented
by
the
construction of the Subic-ClarkTarlac Expressway (SCTEx) that
provides a faster link by land
between and among Clark
Freeport Zone, Subic Bay
Freeport Zone and Luisita
Source: DPWH Annual Report 2009
Industrial Park.
The NLEx
rehabilitation and the construction of the SCTEx are viewed by regional tourism officials as a
major factor that contributes to the rise in the number of tourists and prospective investors
that visit Central Luzon. Another ongoing project at the terminus of SCTEX in Tarlac City is
the Tarlac-Pangasinan-La Union Expressway (TPLEx) This project is expected to be
66

completed in 2013. In December 2010, the Investment Coordination Committee-Technical

Board (ICC-TB) approved the Central Luzon Link Expressway (CLLEx) project of DPWH. This
toll way will also start at the terminus of SCTEx in Tarlac City, pass through Cabanatuan City
and end in San Jose City. The full implementation of the project requires an implementation
period of 10 years. Other expressways being proposed to be constructed include Sierra
Madre Marginal Highway, Manila Bataan Coastal Road, and portion of the TarlacIba Road.
However, current traffic demand is not yet sufficient to support viable operation.
The East-West arterial lateral connection provides access perpendicular or cutting through
the north-south backbones completely connecting the eastern and western seaboards of
Central Luzon. The major east-west link of the region is presently provided by three (3) road
sections, namely TarlacIba, Tarlac-Sta. Rosa, and the Cabanatuan-Pantabangan-Baler
roads. These roads bisect the region and facilitate access to both China Sea and Pacific
Ocean. This link, however, is incomplete as the Zambales side of the Tarlac-Iba Road is not
yet open making Zambales still inaccessible via Tarlac and vice-versa. The alternative access
routes to and from Zambales are through Sta-Cruz-Pangasinan-Camiling Tarlac, the SCTExSubic-Iba or through the Gapan-Olongapo-Subic-Iba routes.
The recent cut-off of Botolan has made ingress and egress to Iba and resource-rich part of
Zambales costly and difficult. This situation is not conducive to prospective investors
because of the added transport costs it would entail resulting from the re-routing through
Pangasinan Province. The recent experience, however, is providential because it depicted in
no uncertain terms the value of completing an east-west lateral connection through Tarlac
City. To accommodate increased economic interaction between Zambales and Pangasinan,
the Mangatarem-Sta. Cruz Highway is expected to assume a more important role in interregional connection. Likewise, a considerable length in Aurora is yet to be paved completely.
Only the sections in Tarlac are in good condition, Nueva Ecija and Auroras sides still require
improvement.
It must be emphasized that current access to and from Zambales is limited to two points, the
Sta Cruz side and Subic side. Most of the current traffic going to and from Zambales uses
the route via Subic. The alignment of the SCTEx provides an opportunity to shorten travel
time to the province through the interchange in Porac, Pampanga that may directly connect
to the municipality of San Marcelino bypassing the high traffic road between Olongapo and
Subic.
Strategic Roads are those roads cutting through areas not covered by, or in support of, the
north-south arterial backbones and the east-west laterals. Considered as one of the most
important strategic roads in the region is the one connecting and passing through Gapan
City, San Fernando City, and Olongapo City now known as Jose Abad Santos Avenue (JASA).
Although it does not technically provide a connection between the east and west coast, it
functions as such by the extent and magnitude of the traffic it handles to and from the
different urban centers in the Region.
Much has been achieved in improving the land transportation and circulation network of the
region in the past six years. Several new roads were built and many have been rehabilitated
or upgraded including bridges which were converted from temporary to permanent. Major
efforts were extended in different areas of the region damaged and destroyed by calamities.
Most implementation targets of various projects have been attained. The Department of
Public Works and Highways (DPWH) 3 which is the governments main implementing agency
for infrastructure projects in the region has focused its efforts and resources to implement
67

programs and projects that best support the regional development agenda with
consideration to the various programs of the national government like for instance the Luzon
Urban Beltway of the Super Regions, 10-Point Economic Agenda and Presidents Bridge
Program, among others.
Last year alone the DPWH reports that it was able to implement a total of 2,409 projects,
foremost are the following: Improvement of Tarlac-Nueva Ecija-Aurora Dingalan Port Road;
Baler-Casiguran Road; and Widening of Manila North Road. The Tarlac-Nueva Ecija-Dingalan
Port Road is among the projects under the Luzon Urban Beltway of Super Regions envisioned
to spread development in the countryside. It facilitates agricultural, industrial and tourism
growth development to the three provinces. It complements the roll on-roll off transport
system in the country particularly the operation of Dingalan Port in Aurora as it will not only
assure mobility of transport and services it will also guarantee road users savings through
the reduction of vehicle operating costs and lower vehicle maintenance costs. Envisioned to
be the connecting point of two
Table 11.
11. Road Density, Philippines and Central
major economic zones from the
Luzon, as of end 2008
East for Aurora and the west for
Area
Road
Land Area
Road
Zambales, through the SCTEX,
Length
(in
ha.)
Density
the road is expected to boost
(in kms.)
production in its influence areas
Philippines
29,650
33,867,795 1.69
in Aurora, Nueva Ecija, Tarlac
Central Luzon 2,075
2,201,463
1.41
and
Zambales.
The Baler-Casiguran Road on
the
other
hand
further
stimulates economic growth in
the northern towns of Aurora.
Nineteen modern bridges were
constructed as part of the
highway including the 735 linear
meters long Dibutunan (bridge)
in Dipaculao town.

Aurora
Bataan
Bulacan
Nueva Ecija
Pampanga
Tarlac

258
280
280
502
286
277

314,732
137,298
279,610
575,133
206,247
305,360

3.17
2.96
1.00
1.52
1.34
1.43

Zambales

192

383,083

1.15

Source: DPWH 2008 Annual Report

The Manila North Road also known as MacArthur Highway is considered the oldest highway
in the country, hence its improvement and widening remains one of the most visible legacies
of the past administration. For the past several years, the MNR has been accommodating
around 40,000 vehicles daily. With the interconnection of two major expressways namely the
North Luzon Expressway (NLEX) and the Subic-Clark-Tarlac Expressway (SCTEX), the widened
MNR parallel to NLEX will enhance its support role in providing transport services to freight
and passengers from Metro Manila, Bulacan, Pampanga and Tarlac. There were also
projects started and are set to be completed within 2010 e.g., Flood Control Works for the
Third River, Opening of Lubao By-Pass Road to Jose Abad Santos Avenue (JASA) and
Construction of Access Road to Floridablanca Interchange all in Pampanga and Construction
of the North Food Exchange Interchange in Bulacan.
In 2008 priority was focused on road capacity improvement and traffic management to
address the worsening traffic congestion in major urban centers. Road management reached
greater heights through the establishment of computerized road information and
management support system (RIMSS) in almost all regions of the country including Central
68

Luzon. This program is aimed at improving the quality and delivery of services through the
provision and management of national roads.
The Pan Philippine Highway was completed in most parts of Region 3. During this year, the
road density of the region was registered at 1.41km. per sq. km. Major flood control projects
in large river basins were also implemented such as the Pampanga Delta Development
Project and the Tarlac section of the Agno River Flood Control Project.
Again, the DPWH continued fast-tracking critical projects for the region and has proven its
commitment in driving development through progressive public works in 2007. The
Meycauayan-Tarlac Section, Phase II of the MNR was completed. More water supply facilities
were made available to the public through the Rural Water Supply and Sanitation Sector
Project of the agency.
Below are some of the projects undertaken in the region from 2004 to 2006:
o
o
o
o
o
o
o
o
o
o
o
o

Widening and improvement of Manila North Road, Meycauayan-Tarlac City Section,

Phase I - PhP467.5 million
North Luzon Expressway, Plaridel Bypass - PhP50 million
Tarlac-Nueva Ecija-Aurora-Dingalan Port Road, 15 kms. - PhP460 Million
Pinatubo Hazard Urgent Mitigation Project, PhP3.3 billion
Four bridges under the ADB Sixth Road Project-Bridge Component in Bulacan, PhP164.1
million
Two bridges under the ADB Sixth Road Project-Bridge Component in Zambales and
Tarlac, PhP111.6 million
275.3 kms. of national roads and 10,004 linear mts. of national bridges with a total
value of PhP1.36 billion;
229 flood control projects the completed portions of which have a value of PhP237.3
million;
293 classrooms, 2 buildings, 590 other infrastructure projects which completed portions
have a value of PhP365.2 million;
6.4 kilometers of farm-to-market roads and 358 projects with a total cost of PhP110.3
million under the budget of Department of Agriculture;
42.9 kilometers of farm-to-market road with a total cost of PhP121.3 million under the
Agrarian Reform Infrastructure Support Projects; and,
673 classrooms and 6 buildings with a cost of PhP7.1 million under the budget of the
Department of Education.

XIII.AirandSeaTransport
Airports are as important as seaports in connecting islands. In terms of status, airports are
classified either as operational or non-operational. Operational airports include those with
temporary permits and those with extended contracts. On the other hand, non-operational
airports are those with expired contracts and temporarily closed. Airports are further
classified as public or private, based on their function or purpose. Private airports are those
which are intended for personal and commercial use. Public airports are those which are
operated and maintained by the government through the Air Transportation Office (ATO).

69

Public airports are subdivided as international, alternate international, trunkline, secondary

and feeder. International airports serve international gateways with regular international
flights while alternate international serves irregular international flights. Trunkline airports
serve principal commercial centers of the country with regular commercial flights having high
traffic density. On the other
Table 12.
12. Airports, Region III, as of end 2009
hand, feeder airports are
Aerodrome
Location
Classification
Status
those found in towns and
Operation
rural
communities
and
Baler
Aurora
Feeder
al
accommodate
general
Castillejos
Zambales
Feeder
-doaviation
operations.
Clark
Pampanga
International
-doSecondary airports serve
towns and cities with
Dilasag Pateco
Aurora
Private
-docommercial flights but have
Iba
Zambales
Feeder
-doless density of traffic.
Omni Aviation
Corp.
Plaridel
Poon Coto
Samal

Pampanga

Private

-do-

As of end 2009, there are

Bulacan
Feeder
-do11 airports in the region. In
Zambales
Private
-doterms of utility, six are public
Bataan
Private
-doand five are private. There
Subic
Zambales
International -doare
two
alternate
international airports, the
Voice of America Tarlac
Private
-doDiosdado
Macapagal
Source: DPWH
International Airport (DMIA)
in Clark Field, Pampanga and the Subic Bay International Airport (SBIA) in Olongapo City,
Zambales. Of late many projects were implemented for the advancement of the DMIA,
namely: terminal expansion program worth PhP130 million to accommodate more than two
million passengers annually; construction of a world-class aircraft hangar facility capable of
housing various aircrafts such as Boeing 747-8 and Airbus A380 worth PhP1 billion; and,
granting by the Japan International Cooperation Agency (JICA) of at least $5 million (PhP225
million) for a transition study that would make the DMIA the countrys premiere
international airport. The study is expected to be finished by the fourth quarter of 2010.
In the case of the Subic Bay International Airport (SBIA), Federal Express (FedEx), its no.1
client, left Subic as its Asia Pacific hub in February 2009 and moved to China. There are
reports that the airport may be converted into a logistics hub. Authorities are studying the
idea of making Subic a subsidiary airport to Clark. The utility of Baler and Iba airports are not
maximized due to limited traffic.
Region III is fortunate to have a seaport - the Subic Port, which at present is considered one
of the most developed and busiest not only in the country but also in South East Asia. It is
operated and managed by the Subic Bay Metropolitan Authority or SBMA. The port has a
natural harbor of up to 13.7 meters covering a total area of 41 hectares. Only recently a new
container terminal with two berths was constructed with a total capacity of 300,000 TwentyFoot Equivalent Units (TEUs) each, enough to accommodate all types of sea vessels- from
small crafts, commercial yachts, ferryboats to container vessels, cargo ships, oil tankers and
aircraft carriers.


70

XIV.PowerandElectrification

Region III is host to
Table 13.
13. Existing Power Plants in Central Luzon
several base and
Capacity (MW)
Plant
Location
Type
Installed Dependable
peak load power
plants
that
Masinloc I
Zamb.
Coal
315.00
312.00
contribute
Masinloc II
-do-do315.00
310.00
electricity to the
Luzon Grid. The
APEC
-do-do50.00
42.00
Luzon Grid covers
Angeles Calibu DPP
Pamp.
Diesel
30.00
30.00
the regions of
Central
Luzon,
Angeles Petersville
-do-do9.60
9.60
Cordillera
DPP
Administrative
FCVC DPP
N.Ecija
-do25.60
23.70
Region,
Ilocos,
Cagayan
Valley,
Tarlac Electric Power Tar.
-do18.90
12.60
National
Capital
Trans Asia Power
Bul.
-do52.00
50.00
Region, Southern
Tagalog,
Bicol
Limay CCGT
Bat.
Gas Turbine
620.00
600.00
Region, the islands
of
Mindoro,
Angat
Bul.
Hydroelectric 246.00
205.24
Masbate,
PantabanagnMarinduque, and
N.Ecija
-do112.00
102.00
Masiway
Catanduanes.
Their total installed
Casecnan
N.Ecija
-do165.00
150.00
and
dependable
Total
1,959.10 1,847.14
capacities
were
computed
at
Source: DOE
1,959.10
megawatts (mw) and 1,847.14 mw respectively.
There are a total 18 electricity distribution utilities in Central Luzon, 13 cooperatives and five
private companies. The goal of providing electric service to all barangays in the region was
achieved. Records of the National Electrification Administration (NEA) show that all the 3,102
barangays are already energized as of September 2010, serving a total of 1,057,824
consumer connections (92%) from the potential 1,152,100.

XV.GovernanceandPolicyInfrastructureFramework
After the effectivity of the Local Government Code (LGC) of 1991, regional governance turned
to a different twist. Fiscal autonomy is enjoyed by the Local Government Units (LGUs) at
various levels but they are required by the LGC to submit their plans to the Regional
Development Council (RDC) for integration into the Regional Development Plan (RDP)
(Section 114, LGC). The intention was to vertically link lower level plans from the barangay
through the regional up to the national level.

71

But while plan integration has been lodged with the RDC, Regional Line Agencies (RLAs) have
consistently prepared their respective agency plans and budgets in accordance with their
central agency thrusts, guidance, and direction. The absence of a transparent process by
National Government Agencies (NGAs) to capture local development needs and priorities
other than the public consultations being conducted in the preparation of the Medium-Term
Philippine Development Plan (MTPDP) leaves the appreciation of loc
local
al development needs
and priorities from the perspective
of central government offices. The Fig 8.
extent in which people participate
in plan formulation falls short of
reflecting, integrating and defining
peoples aspirations, interests and
sentiments into the national
development plan.
Intended to provide the link
between the national and local
level plans, RDC III manages to
capture local needs, aspirations,
and development objectives in the
Regional Development Plan (RDP).
However, non-reflection of the link
between the national and the local
in terms of budgetary support
despite
the
issuance
of
Memorandum Circular No. 54 in
2004 practically leaves priority local development programs and projects without institutional
connection to the central government. While this current arrangement may be viewed as a
development challenge to LGUs, having been endowed with fiscal autonomy under the LGC,
the current financial capacities of most LGUs in the Central Luzon region is indicative of their
anticipated slow future growth paces, suppressive of the regions otherwise optimal
contribution to national growth and what should have been an ideal levelled playing field as
far as access to development opportunities for the most vulnerable and make economic
gains shared by all under the guiding principle of inclusive growth in the MTPDP, 20102016.
Governance is a process by which decisions are arrived at, implemented or not implemented.
Policies are the tools by which these decisions are given stable, sustainable and legal
framework within which to operate on a relatively permanent basis. North (1990) defined
institutions as the rules of the game in a society or the human devised constraints that
shape human interaction. Being of human nature, institutions are inev
inevitably
itably influenced by
personal values, beliefs, and tradition.
Studies would show that apart from political instability, corruption occupies the highest
position as far as the ranking of local business environment factors that influence private
investment decision-making. While national political processes and decisions have greater
influence on political instability, common crimes such as those against persons and property
are more relevant subjects for regional planning.

72

Governance impacts heavily on decisions of investors to part with their money for capital
formation purposes (foregone present consumption) and production of goods and services
for future consumption. Increased investment means higher economic growth and more
business activities which will eventually result to higher income, broader tax base, and more
relaxed fiscal space. A favourable fiscal position will enable government to funnel its
resources to growth-based initiatives and those that directly address poverty. Reduced cost
of doing business is a matter of policy innovation in view of the complexity of delivering the
expected outputs and because of the many players involved, i.e., the national government,
LGUs and the private sector and the different frameworks that influence their respective
positions.
For 2006, 2009 and 2010, geographic disparity of crime statistics among the various
provinces and highly-urbanized cities of the region is noticeable. This suggests lack of unison
in the way the region is addressing peace and security. While the relatively peaceful and
secure Aurora and Olongapo City may be more inviting for private investors and necessary
government support for their promotion as investment destination, the regions relatively
efficient transport mobility and communication system accord criminal elements to easily
shift commission of crime across provinces and cities. This situation necessitates the
crafting of a unified and coherent peace and security strategy at the regional level.
As far as addressing the more challenging peace and security problems minimal variations
and almost perfect consistency were observed across geographic locations for certain areas.
For 2006, Bulacan topped the other provinces as far as the number of crimes against
persons such as Murder and Homicide. This was not a problem for Pampanga for that year
but the latter ranked number one as far as the most number of crimes against property,
which are Robbery and Theft.
For 2009, Nueva Ecija assumed the topmost position as far as Murder, and Bulacan retained
its previous place as far as Homicide. In addition, it registered the most of number of cases
for Crimes against Property. This trend continued until August 2010.
Across crimes, Physical Injury consistently occupied the topmost rung in the ladder. Physical
injury does not involve loss of life and may be described as moderate as far as the gravity of
criminal offenses.
Based on investment surveys, corruption assumes the second most important factor before
an investor would decide for or against investing in an area. To boost investment and in
compliance with the human rights obligation to respect, a national strategy to eradicate
corruption in public life must be vigorously pursued. In Region III however, the dearth of
documents and data is preventing an accurate assessment on how regional governance has
been responding to this particular concern.
True to its nature, corruption is committed clandestinely. Coupled with the evolved culture
after a century-long bureaucratic practice especially among revenue-generating agencies,
this situation is making very difficult for prosecutorial agencies of government to seriously
initiate, pursue investigations and legal actions for purposes of exacting accountability.
Corruption in Region III may be described as petty not because of the amount of money
involved in unlawful transactions but more of the positions by those in the administrative
hierarchy. Regional offices would usually require backers or patrons at the top echelon in
73

order to perpetuate their illegal acts. Since the results expected of them can be easily
measured, the regularity of processes can easily be counter-checked, if there is a will.
Corruption at the regional level is relatively easily tractable. However, the lack of a formal
regional structure and recourse mechanisms for claimholders of public goods and services is
making the identification of such unlawful acts hard to document and systematize and could
hardly be given any weight in any adjudicatory proceedings.
The absence of real power on the part of the RDC to decide on fund allocation, in view of the
centralized administrative set-up we have, is making it hard for LGU-members to have the
realization of the human rights of their claimholders as far as budget prioritization. As a
matter of policy, growth-stimulating investments needing budgetary support still require
national level decision. This is an apparent weakness in the regional governance process.
While priority interventions are identified at the regional level, fully considering the unique
political and economic situations of Region III, the absence of a formal mechanism especially
intended to concretize such interventions is making inefficient and even meaningless what
should have been a more relevant, cost-effective and devolution-responsive budgeting
process.
The need to obtain central agencies approval of regionally-determined development
priorities is making hard for RDC III to be more forward-looking and pro-active in its stance,
sometimes its role being relegated to a mere commentator of an annual agency budget
proposal prepared without its active participation. Despite the clear legal requirement, one
critical reason why LGU-RDC members lack the conscientiousness to submit their
development plans for consolidation by RDC III is the anticipated lack of budgetary support
for their priority development interventions at the regional level. This is also one area where
even well-meaning private sector partners and civil society organizations in the region is
found wanting as an agendum for reform.
The awkward position by which government might be put in public view in the light of noncompliance by LGUs with Section 114 of the LGC and the corresponding action to be taken
by RDC has been preventing RDC III to press hard for the compliance with the law.
Unavoidably, this practice has its high cost too primarily the non-integration, non-reflection
and the utter disregard of important national government policy directions particularly those
on disaster risk reduction-climate change adoption and human rights norms, standards and
principles. Despite the value of the integration of these important planning frameworks, the
lack of linkage between local level budgeting and regional level budgeting has inevitably
resulted to their exclusion.
Inclusive Growth as a key philosophy of the MTPDP implies Non-Discrimination which is a
core principle of Human Rights. Non-discrimination denotes equalization of social and
economic forces so that those who are economically deprived may at least be given
opportunities to grow. For purposes of regional development planning and policy reform, this
means that those who are left behind must be given opportunities to be drawn back to the
development cycle by hauling them out of the financial difficulty. This situation which
continually impairs and nullifies their capacity to contribute to long-term investment is
intended to address disparity in infrastructures sought after by prospective investors and
accord easy access to basic social services and safeguards for the most at risks of having
their human rights violated amidst a tight local fiscal situation.
74

IRA Independency Ratio is an indication of the extent of support the national government
extends to LGUs and the degree to which such support is needed. After almost 20 years of
devolution, below is the picture for Region III compared with other regions (inter-regional
disparity) and the situation of the seven provinces of Central Luzon compared to one another
(intra-regional disparity).
InterInter-Regional IRA Independency Disparity. For 2004-2007, Local Governments in Central
Luzon can be grouped with those of the National Capital Region and Regions 1 and 4 which
have relatively high IRA Independency Ratios. Occupying the fourth and last place in the
group and trailing behind Region 1, Region 3 managed to climb up to the third place
outdoing Region 1 in 2006 and 2007. From 2004-2007, NCR and Region 4 consistently
occupied the first and second places respectively.
Figure 9 .

Source: Commission on Audit (COA)

Inter-regional disparity in terms of income levels of various LGUs (Provinces, Cities and
Municipalities) is indicative of poor policy implementation in terms of investment promotion,
income generation and economic growth. Although the formula as far as Internal Revenue
Allotment (IRA) allocation among LGUs is concerned is provided for by law, every LGU is
conferred with local autonomy on the utilization of its revenues and other receipts and the
generation of the same from various sources.
IntraIntra-Regional Disparities on IRA Independency. Within Central Luzon, the glaring disparity
between the IRA Independency Ratios of Aurora, Nueva Ecija, Pampanga, Tarlac and
Zambales for the period 2004-2007 as against Bulacan and Bataan indicates the relatively
low capacity of the five provinces to stimulate investments and boost economic activities in
their areas.

75

Figure 10.
10.

Source: Commission on Audit (COA)

Exercising revenue-raising powers under the LGC, LGU can derive their income internally
(Own-Source Resources) and externally principally from their share in National Government
coffers through the IRA. By providing for their corporate and broad taxing powers and
innovative means for revenue generation, the clear intent of the LGC was primarily to
stimulate local growth and eventually graduate from too much dependence on the national
government for support to self-sufficiency. Aggregated local growth means national growth.
Strong local economies would mean greater access to quality basic social services.

After almost two decades, such intent however still has to produce the expected results for
various reasons. Producing results is not only a matter of simply re-grouping provinces under
a new regional administrative set-up. A good example is Aurora which although managed to
climb up to an independency ratio of 7.88 percent in 2007 experienced a sharp drop in
2006 down to 5.25 percent. Aurora was transferred from Region IV to Region III in 2002 by
virtue of Executive Order No. 103.
Local political leadership has been clamouring for changes in this respect. But while
legislation has been considered as a viable option, if experience at past efforts would be the
gauge, the same is not expected to be forthcoming soon. An administrative reform at the
level of the RDC is more realistic, the same being immediately executable being within the
ambit of the ordinance powers of the President.

Data would show that the Office of the President actually controls more than 80 percent of
the national budget, and to put P-Noys Social Contract with the Filipino People into action
necessitates subjecting the current processes to re-thinking to ensure that a substantive
portion of the national budget gives special attention to the more vulnerable LGUs, enhance
76

their wealth-generating potentials and improve their capacity to provide access to basic
social services by the marginalized, the excluded, and the neglected.

The basic rationale underlying the administrative delineation of regions was to enable them
to move with greater speed and efficiency as a more manageable administrative unit. To be
translated with greater speed, efficiency and effectiveness, the sound management principle
of span of control dictates that the content of the budget, its execution and its monitoring
must be placed under the authority of the Regional Development Council (RDC) III. Such
measure is intended to re-create a relevant and proactive RDC and a responsive regional
administrative governance set-up.
Local Financial Capacity for Capital Formation
Formation.. Data would show that generally around 45-55
percent of the local budget is spent on Personal Services (PS). If expenses for maintenance
Figure 11.
11.

Source: Commission on Audit (COA)

and operation are added then what is left for LGUs developm
development
ent projects is only a miniscule
slice of their general budget. If tales will be given probative weight, despite COA Guidelines
on what can be considered as within the scope of the Development Fund (DF), LGUs have
developed the habit of wanting to put mor
more
e projects within the scope of DF.
It is the National Government that usually provides for long-term huge capital investments.
But if this is to be fully relied on, greater amount of evidence is still needed to prove the
consistency of government pronouncements with its actuations.
In 2004, Region III bested the other nine regions as far as the financial capacity to invest in
capital formation, which except for Bicol Region were all from the Visayas and Mindanao.
However, it had the lowest budget for capital investment as shown by its 23.34 percent ratio;
77

NCR had the highest budget for capital-forming investment at 36.04 percent. In absolute
terms, the difference is even larger.
Sharply dropping to a measly .01 percentage points in 2005, Central Luz
Luzon
on outdid additional
two other regions, namely Region 7 and CAR in terms of capacity to invest in capital-forming
activities. At 23.03 percent ratio in 2006, however, it was the lowest among the relatively
better performing 12 regions, outcompeting only R
Regions
egions 5, 11, 12 and the ARMM which
obtained the lowest at 7.91 percent. For 2007, Region III bounced back and has outdone 7
other regions. But at 21.14 percent ratio it appeared the most sluggish in the cohort of the
better performers.
From 2004-2007, the region has had more or less subdued behaviour as far as available
finances for capital investment projects. Across provinces, for 2005 and 2006, the two
provinces of Aurora and Pampanga had relatively small amount of available money for
investment in capital formation. In 2007, Pampanga posted a sharp rise to 36.55 percent of
its budget for capital investment almost doubling its 2006 level of 18.39 percent and
surpassing the regional level of 21.14 percent. This leaves out only the province of Aurora
which even experienced a drastic drop to 1.5 percent of its budge
budgett that may be considered
free for capital investment. The extent of deprivation by the province is a lot greater than that
of the Autonomous Region in Muslim Mindanao (ARMM) in 2007 which posted the lowest
rate of 7.98 among all the regions nationwide. Tra
Translated
nslated in absolute terms, this is
equivalent to P4,816,010, a negligible amount for long-term capital investment.

Figure 12.
12.

Source: Commission on Audit (COA)

Being mountainous, the unique topography of Aurora has even exacerbated the problem.
Low investment in capital-forming projects does not only jeopardize the future well-being of
the people of the province but also the realization of their normative entitl
entitlements
ements to various
human rights particularly their physical access to education, health, other social services,
productive assets, and development opportunities to improve the quality of their lives.
Relatively lower PS and MOOE in 2007 was responsible ffor
or the almost double budget for
capital investment in the case of Pampanga, from 18.39 percent in 2006 to 36.55 percent
in 2007.
Government Transactions. Working within the framework of reduced cost of doing business
and implicit in addressing corruptio
corruption,
n, businesses must be assured of transparent and
78

efficient government processes because this would enable them to attribute responsibility in
case of non-performance. Time means money for the business such that any delay in
completing transactions with government in the exercise of its regulatory powers is an
unnecessary expense. Simple and transparent processes of dealing with government will,
therefore be, inviting to prospective investors and an incentive to existing investors. It is also
a measure to eliminate potential source of corruption.
If Region III is to be promoted as one and common destination for investors, geographic
disparity among its LGUs must be eliminated. From the regular monitoring reports received
by the Department of Trade and Industry, Region III, as of the 2nd Quarter of 2010, the
following were the observations made:

There is no time difference between new and business applications for

renewal. The implication is this would serve as disincentive being generally
viewed as a plausible lack government support to performing private
businesses.

Shorter processing time for less urbanized municipalities within the same
province. As a result, expected benefits in terms of increased investments
because of low transaction costs are not optimized.

Longer processing time for business application renewals. This serves as an

unnecessary burden for performing businesses.

Almost nil processing time for new applications, which suggests low level of
value attached to the difference on what business process streamlining can
do for the local economy.

Geographic disparity between and among municipalities in the same province is indicative of
the weak supervision by the province in promoting it as a common target area for private
investments.
The following observations were noted from all the municipalities/cities of the provinces of
Bataan, Pampanga, Tarlac and Nueva Ecija, six municipalities of Aurora, eight municipalities
of Bulacan, and one city and one municipality from Zambales.
From monitoring reports as of March 31, 2010, the upgrading initiated by the Department of
Trade and Industry in January 2010 generally resulted in shorter processing time for the
eight pilot cities of Central Luzon, namely: Balanga, Malolos, Cabanatuan, Gapan, Angeles,
San Fernando, Tarlac and Olongapo.

XVI.ClimatechangeandNaturalDisasterRisks
The study conducted by the Manila Observatory and commissioned by the Department of
Environment and Natural Resources in 2007 although done on a national level, provides a
view of the changing climatic conditions in the country across regions and provinces.

79

Fig. 13.
13.

The results of the study indicate: (1) surface

temperature increases that are consistent with
the global and national trends; (2) local
variations in rainfall distribution; (3)
acceleration of sea level rise; and (4) typhoon
occurrences.
The increases in regional land and sea surface
temperatures in the past 40 years observed by
Manton, et.al. (2001) led the Manila
Observatory (2007) to predict more hot days
and warm nights with fewer cold days and

Fig. 14

nights in the coming years. Central Luzon

is predicted to have low risk in terms of
projected temperature increases except
for the province of Pampanga which has
medium risk .
Predictions of local variations in rainfall
over the country have been limited by
research and technical capabilities and
utilize extrapolation of past rainfall trends
into the future although global models
predict increases in rainfall amount over
this part of subtropical Asia. Using the Manton, et.al. (2001) study, the Manila Observatory
predicts that Central Luzons provinces shall be subjected to high and very high risks to
projected rainfall changes (Figure 13).
Villarin, et.al (2008) advance that accelerated sea level rise resulting from expansion of
oceans due to warming and the melting of mountain glaciers and polar ice is a phenomenon
that shall affect and threaten the Philippine archipelago. In the same report, the authors cite
evidence provided in the results of a study conducted by the UK Climate Research Unit in
Manila and Legaspi that show an increase in sea level rise that started in the 1970s.
Rodolfo and Siringan (2006) in Villarin, et.al. (2008) advance that ground subsidence due to
over-extraction of groundwater compounds the impacts of sea level rise in urban centers. It
may be worth noting that settlements in the Philippines started to develop along coasts and
80

river deltas. This phenomenon did not spare Central Luzon as its northern coastline abuts
Manila Bay, considered a threatened sea body. Figure 14 shows the extent of the areas in
Central Luzon that are susceptible to a seven- meter sea level rise. Pampanga, Bulacan and
Bataan coastal communities are most susceptible although in Pampanga, the area to be
affected can go as far as the boundary with Nueva Ecija.
Fig. 15

There is no definitive statement on the perceived increase in intensity of typhoons that

occurred over the Philippines. However, the observed shifts in climate patterns lead to
projections of frequency and geographical occurrences in the country. The Manila
Observatory (2007) projects fewer typhoons in January to March but will increase in July to
November. The increase in frequency is most pronounced over the Visayas area and these
trends will continue throughout the present century. Central Luzon is predicted to be
subjected to high risks to typhoons (Figure 15).
The present array of natural disasters that hit Central Luzon points to its susceptibility to
climate-related hazards such as high volume or long duration rainfall regimes. The extensive
central plains and the low-lying coastal communities are regularly inundated with flood
waters from surface run-off or in combination with tidal flood waters. The mountain ranges
that surround the plains are themselves susceptible to rain-induced landslides.
There are two major river systems located and passing through Central Luzon the
Pampanga River and Agno River. The Pampanga River has tributaries originating as far as
the Sierra Madre areas. Its meandering route traverses Nueva Ecija, cuts through Pampanga
where it is met by Rio Chico River, passes through Bulacan where it is joined by Angat River,
then finally exits to the Manila Bay. The Agno river, on the other hand, originates as far as
Ilocos and Cordillera before it passes through Pangasinan, enters Tarlac where it is met by
Tarlac River, then re-enters Pangasinan, and finally drains at Lingayen Gulf.
81

Fig. 16

The structure of the regions economy shows that it is susceptible to the occurrence of
natural disasters. Agriculture output continues to be a significant contributor to economic
output. Rice and freshwater fisheries are major products and their production areas are
found along the low- lying areas especially for fisheries and in flat to gently sloping areas for
rice. These areas are very susceptible to flooding and increases or decreases in rainfall
volumes shall have implications on the production levels. The vulnerability of the people in
these areas is compounded by the high incidence of poverty in the same areas. The same
may be construed for people living in sloping areas that are susceptible to landslides.
Industry sector is anchored on the large industrial estates in the region. Freeport Area of
Bataan is the first export processing zone in the country and located along the coasts of
Mariveles in the Bataan Peninsula. Clark and Subic Economic and Freeport Zones, Hacienda
Luisita in Tarlac and smaller private industrial estates in Bulacan and Pampanga house
manufacturing industries that rely on continuous power supply, efficient telecommunications
services, transportation facilities and housing for their operations. These requirements are
all susceptible to typhoons and their operations grind to a halt in times of intense weather
disturbances. Power and telecommunication lines are usually felled by intense typhoons and
their workers are unable to report to work due to cuts in transport systems. Flooding usually
is experienced in urban areas where most of their workers live.
Central Luzons economy has recently been resuscitated from the effects of the eruption of
Mt. Pinatubo in 1991 and the earthquake of 1990. Although these were geological events,
the impacts were exacerbated by climatic hazards as our experience with lahar has shown
when these were mobilized by heavy rainfall. And though the lahar deposits have since
stabilized, the uncertainties surrounding rainfall regimes resulting from climate change may
remobilize these deposits and threaten anew settlements in the low-lying areas.
In 2009 the PAGASA put up the Pampanga Flood Forecasting and Warning Communication
system (PRBFFWC). It is equipped with a network of monitoring facilities consisting of rainfall,
water level, combined rainfall and water level and three repeater stations, a central station
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and monitoring stations. The PRBFFWC is tasked to monitor hydrological situation, forecast
and provide flood warnings to the flood-prone areas within the Pampanga river basin.
Residents living in low-lying and flood prone areas in the provinces of Pampanga, Bulacan
and Nueva Ecija are assured of early, concise and up-to-date reports on weather, rainfall and
the water level of the Pampanga River. The project was built at a cost of PhP460 million
sourced through a grant from the Japan International Cooperation Agency (JICA).
In Central Luzon there are three active faults i.e., the Philippine Fault which passes along
Nueva Ecija province, the extension of the Marikina Valley Fault System at Angat, Bulacan
and active faults east and south of the Zambales Range. Earthquake generators on the other
hand are the Casiguran Fault located offshore of Casiguran in Aurora, Philippine Fault
extension north of the region and the Lubang Fault near Lubang Island and Mindoro Island.
The large impacts of natural disasters are not only related to the geography of the country
and its high exposure to natural hazards, but also to its vulnerability, which is closely linked
to poverty and environmental management. In urban areas, poverty drives many poor
families to live in high-risk areas. In the rural areas, disasters throw poor families back into
poverty who are forced to rely on coping mechanisms that reduce their long-term chances for
improving their lives.
The risks posed by global climate change will severely affect key pillars of socio-economic
development, that include natural resources, agriculture, infrastructure, water resources and
human health. While there is uncertainty on the likely conditions and changes in some
climate variables resulting from global warming, there are predictors of possible climate
change impacts in the country. Amidst the dearth of prediction models that reduce
uncertainties for climate change impacts at the sub-national and sub-regional levels, it is
certain that surface temperature is rising and more warm days and lesser cool ones have
been recorded. These temperature variations have already increased the risks to the country
and local level socio-economic development.
Although uncertainties continue to cloud the possible impacts of climate change at the local
levels, it is certain that increases in average temperatures that result in natural disasters are
already taking their toll on the socio-economic development of Central Luzon. This is due not
only to the natural hazards to which the region is exposed but also because of its
vulnerabilities that are exacerbated by poverty and environmental degradation. The most
likely to be affected sector of the economy is the agriculture sector upon which a
considerable number of the regions poor depends for their livelihood.

XVII.TerrorismandArmedThreats
To date, the main organized armed threat to internal security stems from the operations of
the Central Luzon Regional Committee (CLRC) which is an organ of the Communist Party of
the Philippines/New Peoples Army/National Democratic Front (CPP/NPA/NDF). Communist
Terrorist guerrilla fronts are operating in Pampanga, Bulacan and Nueva Ecija. In 2006 and
2007, the Internal Security Operations (ISO) of the Armed Forces of the Philippines (AFP)
effected the neutralization of Communist-Terrorist (CT) leaders, regular members and
functional staff. Sectoral front organizations remain active and aggressive in Central Luzon
and sustained their activities and roles in the urban areas through the exploitation of human
security issues and through extra-judicial killings.
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As of late last year, the AFP and the PNP are still confronted with the existence of two warring
factions, the pro-Sison and the anti-Sison groups. Per their assessment, the Marxist-Leninist
Party of the Philippines/Rebolusyonaryong Hukbong Bayan (MLPP/RHB) still conducts party
and mass base building. On the other hand, the rejectionist faction continues its extortion
activities in order to survive. They are conducting limited Ideological, Political and
Organizational (IPO) activities to avoid being branded as ordinary criminals.
At least 632 members of two communist rebel groups operating in Central Luzon
surrendered to government authorities last year. The Armys 7ID pronounced that 20 other
communist guerrillas operating within the divisions area of operations have also been
classified as neutralized. From the total 652 rebels who yielded, 147 had their firearms
given up by the end of 2008. The AFP has reported that the number of NPA guerrilla fronts
had been cut down from 87 in 2007 to 62 at the end of 2008, a good indication it is right on
target of crushing the communist insurgency.

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