THE PRESIDENT’S REPORT

TO THE PEOPLE
2016 - 2018

Transforming the Nation

Through Strong and Decisive Leadership:
Malasakit at Pagbabago
 THE PRESIDENT’S REPORT
TO THE PEOPLE
2016 - 2018

Transforming the Nation

Through Strong and Decisive Leadership:
Malasakit at Pagbabago
2018. All rights reserved.

Any part of this publication may be used and reproduced provided proper
acknowledgement is made. However, prior written approval of the publisher is
necessary for the commercial use of this publication or any part thereof.

The President’s Report to the People 2016-2018

Transforming the Nation Through Strong and Decisive Leadership:
Malasakit at Pagbabago

Published by the Office of the President - Presidential Management Staff

in collaboration with the national government departments and agencies.

PMS Building, Arlegui Street, San Miguel, Manila 1005 Philippines

Tel No.: 876-8450
E-mail Address: info@pms.gov.ph

Cover designed by the Presidential Management Staff

Printed by the Bureau of Communications Services
 F O R EWO R D

About two years ago, I solemnly took my oath as a worker of the national
government. I was as inspired to institute real changes for the greater
good of the Filipino, as I was greatly overwhelmed then by the daunting
challenges that laid ahead.

Two years after, my solid commitment to directly and decisively address

our nation’s collective challenges remains. It has not wavered. In truth,
it has even gotten stronger through adversity, and the desire to give the
people the most we can, within my term in this government.

I have always believed that no matter how well-intentioned a leader is, no

matter how well-conceived his mission may be, if he lacks the political
will to do what needs to be done, then he can only end up a failure and a
hopeless dreamer.

As a worker of government, I promised to do whatever it would take to

give all Filipinos a comfortable life, even if it meant fighting powerful
interests and making sacrifices. My obligation is to promote and uphold
the greatest good, for the greatest number, for the longest time.

My countrymen, I did not bore you with a litany of this administration’s

projects during my State of the Nation Address. I have instead caused
to be prepared this written report on what was and what will be in the
months and years to come.

Rodrigo Roa Duterte

President, Republic of the Philippines
State of the Nation Address
July 23, 2018
 TA B L E O F C O N T E N T S
iii Foreword

TOWARDS A CHAPTER 1 | SECURING THE NATION

SECURE AND 2 Combatting Terrorism and Extremism
PEACEFUL 9 Paving the Way for Meaningful Peace and Inclusivity
NATION 14 Upholding Law and Order
26 Way Forward: Further Eradicating Threats to Peace and Security

CHAPTER 2 | ADVANCING THE NATIONAL INTEREST IN THE

GLOBAL COMMUNITY
29 Spearheading Efforts in Regional Security and Development
32 Defending our National Patrimony
33 Maximizing Trade and Investment Relations
40 Promoting and Protecting the Interest of Filipino Migrant Workers and
Other Filipinos Overseas
45 Way Forward: National Development as the Corner Stone of Philippine
Foreign Policy

CHAPTER 3 | TOWARDS SAFE, ADAPTIVE, AND RESILIENT

COMMUNITIES
48 Disaster Risk Reduction
52 Disaster Preparedness and Response
56 Recovery and Building Forward Better

TOWARDS CHAPTER 4 | RIDDING THE GOVERNMENT OF CORRUPTION

RESTORING 63 Cleansing the Government of Corrupt Officials
FAITH AND 63 Strengthening Budget Transparency and Accountability
TRUST IN 65 Instituting Good Governance in the GOCCs
GOVERNMENT 65 Promoting Integrity in our Revenue Generating Agencies
67 Way Forward: Towards a Corrupt-Free Philippines

CHAPTER 5 | MAKING A PEOPLE-CENTRIC BUREAUCRACY
69 Addressing Public Concerns via the 8888 Citizens’ Complaint Hotline
71 Streamlining Government Frontline Services
78 Ensuring the Efficient Provision of Basic Social Services, Benefits, and
Assistance
79 Paving the Way for Freedom of Information
80 Way Forward: Further Improving Effective Delivery of Public Service

 TOWARDS CHAPTER 6 | FINANCING HUMAN DEVELOPMENT
UPLIFTING 83 Enhancing Revenue Collection
THE LIVING 86 Enhancing Efficiency in the Use of Resources
CONDITIONS 89 Way Forward: Modernizing Government Planning and Budgeting
OF THE
FILIPINO CHAPTER 7 | PROVIDING FOR THE PEOPLE’S BASIC NEEDS
PEOPLE 91 Provision of Clean Water, Decent Housing, and Sustainable Energy
103 Promoting Quality and Relevant Education and Training for All
107 Promoting an Enabling Environment for the Poor, Marginalized, and
Vulnerable
109 Fostering Secure and Meaningful Employment
118 Strengthening Agrarian Reform and Accelerating Agricultural
Development
124 Ensuring Better-Quality Health for All
128 Ensuring Financial Inclusion for All Filipinos

CHAPTER 8 | ENHANCING MOBILITY AND CONNECTIVITY

131 Development of Inter- and Intra-Island Connectivity
140 Decongesting Roads, Airports, and Ports
143 Boosting Information and Communications Connectivity and Access

149 Conclusion
150 Annex A : Salient Features of the “Bayanihan” Federalism
152 Annex B : Ongoing and Planned Infrastructure Projects
161 List of Acronyms
 L I S T O F F IG U R E S

3 Figure 1. Neutralized ISIS Leaders in Marawi

5 Figure 2. Marawi City Rehabilitation Efforts, as of July 18, 2018
9 Figure 3. Validated Rebel Surrenderers, Duterte Administration
10 Figure 4. Benefits Under the Enhanced Comprehensive Local Integration
17 Figure 5. Anti-Illegal Drug Accomplishments, as of June 30, 2018
19 Figure 6. Elected Officials Involved in Illegal Drug Activities
25 Figure 7. Drug-Cleared Provinces
25 Figure 8. Capacitation of BADAC
34 Figure 9. Total Trade 2016 and 2017 (Export And Import) Major Trading Partners in 2017
35 Figure 10. Export of Travel Goods to the US 2016-2017
37 Figure 11. BOI-Approved Investments, 2016 and 2017
37 Figure 12. FDI Net Inflows, 2016 and 2017
47 Figure 13. Framework for Disaster Resilience
48 Figure 14. Key Features of the Proposed Department
57 Figure 15. Fecal Coliform Levels in Bolabog Beach
58 Figure 16. Status of Efforts of the Boracay Inter-Agency Task Force, as of July 2018
60 Figure 17. Welfare Assistance to Mayon Evacuees
64 Figure 18. Budget Transparency Rank 2017
71 Figure 19. Bantay Korapsyon Program
71 Figure 20. LGU Compliance to the BPLS
80 Figure 21. Compliance with FOI
83 Figure 22. Non-Tax Revenues and Dividends
86 Figure 23. Share of Sectors in the Total 2016, 2017, and 2018 Budget
87 Figure 24. Increase in Annual Share of the National Budget, Per Island Group
113 Figure 25. Negosyo Center Established as of July 5, 2018
117 Figure 26. International Arrivals, January-June 2018
118 Figure 27. Philippine Agricultural Performance 2017
145 Figure 28. Tech4Ed Platform Segments
 L I ST O F TA B L E S

4 Table 1. Results of Marawi City operations (May 23 - October 23, 2017)

6 Table 2. Results of Internal Security operations, as of First Semester 2018
7 Table 3. Number of Loose Firearms Recovered, January 1-June 30, 2018
8 Table 4. Number of Surrenderers From Local Extremist Groups, Second Semester 2016-First Semester 2018
8 Table 5. Assistance Provided to Maute-ISIS Surrenderers
15 Table 6. Administrative Cases of PNP Personnel Positive/Involved in Illegal Drugs
15 Table 7. Disciplinary Action Given to Erring PNP personnel
16 Table 8. Anti-crime accomplishments
17 Table 9. Focus crimes
21 Table 10. Location of Treatment and Rehabilitation Centers, as of July 6, 2018
22 Table 11. Status of Pilot Community-Based Treatment Drug Abuse Recovery Facilities, as of May 2018
24 Table 12. Status of Community-Based Rehabilitation Program and After-Care
26 Table 13. Bangon Marawi Comprehensive Rehabilitation And Recovery Plans, Programs, Projects, and Activities
36 Table 14. Mechanisms with Non-Traditional Markets
39 Table 15. Repeal of Burdensome and Irrelevant Rules and Regulations
42 Table 16. Bilateral Labor Agreements
43 Table 17. Filipinos Repatriated
53 Table 18. Two-Pronged Strategy Towards an Earthquake-Resilient GMMA
56 Table 19. Completed Regional Evacuation Centers, as of May 7, 2018
65 Table 20. Top Ten GOCCs with Highest Dividends Remitted in 2017
66 Table 21. Disposition of Smuggled Vehicles, as of First Quarter 2018
69 Table 22. Agencies with the Most ARTA-Related Reports
70 Table 23. Public Concerns Reported in Hotline 8888
72 Table 24. BPLS Standards to Reduce Processing Time for Government Transactions
73 Table 25. LGUs with Initial Implementation of the BPLS
83 Table 26. Tax Revenues Collected
84 Table 27. Tax Monitoring and Enforcement Accomplishments
88 Table 28. Sample Projects Monitored by DIME
89 Table 29. Comparison of the Obligation-Based and Annual Cash-Based Budgeting
93 Table 30. Adjustments in the Financing Schemes of Socialized Housing Program
94 Table 31. Specification for Socialized Housing Units
94 Table 32. Comparative Specifications of the Old and New AFP/PNP Housing Program
96 Table 33. Household Electrification Level by Region, as of December 2017
 L I S T O F TA B L E S

98 Table 34. Philippines’ Dependable Capacity

98 Table 35. Electricity Generation Mix
99 Table 36. Committed Power Projects in the Philippines, 2018-2025, as of June 2018
99 Table 37. RE Projects Awarded, June 2016 to March 2018
103 Table 38. Teacher and Classroom to Learner Ratios
106 Table 39. Financial Assistance Provided in Academic Year 2017-2018
109 Table 40. Assistance to Youth Workers
115 Table 41. SET-UP Accomplishments
123 Table 42. Big-Ticket Irrigation Projects
126 Table 43. Annual HRH Deployment
134 Table 44. Completed Airport Improvement Projects
135 Table 45. Completed Public Works Projects, 2017-2018
 TOWARDS
A SECURE AND
PEACEFUL NATION

We owe it to our fallen

soldiers and police
officers in Marawi and
elsewhere to put an end
to the bloodshed and
seek the path of true
peace—a peace that will
last beyond this lifetime,
and whose dividends
our children will reap.

President Rodrigo Roa Duterte
State of the Nation Address
July 23, 2018

Photo Credit: PCOO

 2 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

Photo Credit: PCOO

SECURING THE NATION

1
CHAPTER

Securing our country is a tremendously daunting task. While

we have been making significant progress in weeding out
elements that threaten our national security, there is still a long
way to go to achieve genuine, inclusive, and lasting peace.

COMBATTING TERRORISM AND EXTREMISM

When I delivered my State of the Nation Address (SONA)
last year, we were in the middle of a complex and intense
urban warfare in Marawi City, a setback in our efforts to
achieve peace in Mindanao. Nevertheless, we successfully
defeated the ISIS terrorists that attempted to establish a
base in Southern Philippines. Today, we press on with our
quest for a more secure and peaceful nation, overcoming one
barrier after another through strong and decisive leadership.
 T H E P R E SI D E N T ’ S R E P O RT 3
TO THE PEOPLE
2016 - 2018

LIBERATING MARAWI CITY FROM TERRORISM.1 On
May 23, 2017, we launched a military operation to
neutralize Isnilon Hapilon, the appointed Emir of
the Islamic State in Southeast Asia, who was then
planning atrocities with the ISIS-inspired Maute
Group. The Maute Group and Hapilon, along with
foreign terrorists and local followers, wanted to
establish an ISIS wilayat (province) in Mindanao.
Well-prepared terrorists heavily resisted our
government troops in Marawi City. The enemy
stockpiled powerful weapons and a seemingly
endless supply of food and ammunitions, built
underground bunkers, rigged houses and
buildings with improvised explosive devices, and
positioned snipers in key strategic points.
The battle also revealed the viciousness of the
illegal drug trade. A web of personalities, some
involved in illegal drugs, participated in the
planning, provided funding, and even lent their
respective armed groups and other resources to
the terrorist fighters.
Through the bravery, relentlessness, and sacrifice
of our soldiers and police personnel, Marawi
City was liberated on October 17, 2017 after a
five-month battle. It was a feat highly lauded by
the international community. We showed to the
world that we would not cower to the ISIS.
I therefore make this commitment that as long as
I am President, the ISIS will never gain foothold in
any part of the Philippines. I will never allow our
beautiful country to suffer the fate of the countries in
the Middle East where ISIS wrought havoc for years.
Our successful liberation of Marawi City also led
to the neutralization of other high-value targets of
government including Isnilon Hapilon, Abdullah
Maute (the main planner of the Marawi siege),
Omarkhayam Maute (the ground commander in the
main battle area), and Romato Maute (the ground
commander in Marinaut, Marawi City). This also
led to the neutralization of 33 foreign terrorists in the
country and the collapse of the leadership chain of
the ISIS-inspired group in Mindanao.

FIGURE 1. NEUTRALIZED ISIS LEADERS IN MARAWI

33 NEUTRALIZED
FOREIGN TERRORIST FIGHTERS INCLUDING:

Qayyim Amin BACO

ABDULLAH @ABU JIHAD
Isnilon HAPILON Abdullah MAUTE @QAYYIM
Emir of Daulah Islamiyah Leader of Maute Group
AS S O C I AT E S
Dr MAHMUD
Abu JAMIL Bin Ahmad
@DOCTOR/
Abu Hanzalah

Muamar
Omarkhayam Abdul Azis R MAUTE Mohammad Gadaffi Bin Mohammad
MAUTE @MADIE Khayam R MAUTE Mohammad JORAIMEE
Vice Leader of Sub-leader of @OTTO SHAFAWI Bin Awang
Maute Group Maute Group Intel/SOG of Maute Group @ABU AHMAD Raimee

Source and Photo Credit: AFP

1 DND, July 20, 2018.

 4 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

TABLE 1. RESULTS OF MARAWI CITY OPERATIONS (MAY 23 - OCTOBER 23, 2017)

1,777 Civilians
rescued

920 Enemies
neutralized

2,000
Unexploded ordnance
and Improvised
Explosive Devices
(IEDs) recovered

855 Firearms
recovered
(769 High-Powered,
86 Low-Powered)

12kg Illegal drugs

seized
(Shabu)

Support to Marawi City Residents

Source and Photo Credit: AFP

Our troops also recovered from a stronghold
of the Maute Group in the city 12 kilograms of
shabu worth PhP110 million-PhP250 million,
the biggest haul from the Maute Group so far.
Through the bravery,
relentlessness, and
sacrifice of our soldiers
and police personnel,
Marawi City was
liberated on October
17, 2017 after
a five-month battle. had political will been lacking. A day after the
2 TFBM, July 18, 2018.
MARAWI CITY REHABILITATION.2 To ensure the
comprehensive rehabilitation of Marawi City, I
created Task Force Bangon Marawi (TFBM) on
June 28, 2017. Headed by the Chair of the Housing
and Urban Development Coordinating Council
(HUDCC), the TFBM is tasked to coordinate
and facilitate the recovery and rehabilitation
of Marawi City and ensure the restoration and
maintenance of peace and order in the area in
coordination with the Autonomous Region in
Muslim Mindanao (ARMM). As of July 9, 2018,
we have released PhP5.6 billion, which supported
various relief and rehabilitation efforts.
We would have not won the battle of Marawi
conflict broke out, I swiftly declared Martial
Law to quell the existing rebellion in Mindanao.
 T H E P R E SI D E N T ’ S R E P O RT 5
TO THE PEOPLE
2016 - 2018

FIGURE 2. MARAWI CITY REHABILITATION EFFORTS, AS OF JULY 18, 2018

TRANSITIONAL HOUSING
RELIEF ASSISTANCE Completed Awaiting land development

48,922 FAMILIES received

family food packs
Substantially completed/
Under construction
For construction by the
NHA starting Q2 2018

42,107 FAMILIES provided with

financial assistance
15 %
Of 942 completed units:
• 808 have been awarded
and 134 are for awarding 36%
942 units 2,300 units

75,517 water, mosquito nets, • 766 are occupied

and dignity kits provided
to affected families 2%
110 units
47%
3,000 units

77,170 FAMILIES provided with

Disaster Assistance
Family Access Card to
give them access to
DSWD services

59,565 PEOPLE provided with

cash for work amounting
to PhP119.3 million 6,352
80,514 medical consultations Transitional
conducted Housing Needs

1,125 health personnel

deployed

LIVELIHOOD AND EMPLOYMENT

2,234 workers provided with emergency
assistance under the Tulong Panghanap-buhay sa
Ating Disadvantaged/Displaced Workers Program
PhP19.6 million loans released to Internally
Displaced People (IDPs) under the Pondo Para sa
Pagbabago
LIFELINES 12,615 individuals awarded livelihood and skills
Iligan training scholarships under the Emergency Skills
100% road Training Program for Marawi Reconstruction
Communications networks
Command Center cleared as of Islamic microfinance launched to provide
established to January 2018 no-interest finance schemes and grants
link affected
communities with Sagonsongan 80 farmers granted loans worth PhP400,000
the government Deep Well under the Survival and Recovery Program
constructed,
98% of Marawi which can SECURITY, PEACE, AND ORDER
City and fill up a
surrounding areas 366 police personnel deployed in Marawi City
100,000-liter
energized tank in 10 1,667 bombs and IEDs disposed
hours
Source and Photo Credit: TFBM
 6 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

The implementation of Martial Law has provided
the people of Mindanao with enhanced security
because of the increased presence of government
forces, particularly in areas where the terrorist
and rebel threat had persisted. As the Martial
Law remains in effect and through intensified
military operations, many terrorists and lawless
elements have been apprehended.
CONTINUOUS CRACKDOWN ON TERRORISTS, REBEL
GROUPS, AND LAWLESS ELEMENTS.3 Our forces
are relentlessly implementing all-out offensives
against terror groups and lawless elements, and
conducting focused military operations against the
Communist Party of the Philippines (CPP)-New
People’s Army (NPA) terrorists (CNTs), targeting
those who commit atrocities against civilians.

TABLE 2. RESULTS OF INTERNAL SECURITY OPERATIONS,

AS OF FIRST SEMESTER 2018

PERIOD
Against the PARTICULARS TOTAL
FULL-YEAR
CNT 2ND SEM 2016
2017
1ST SEM 2018

OPERATIONS CONDUCTED 2,162 2,767 1,516 6,445

ENEMY KILLED 23 183 70 276
ENEMY APPREHENDED 16 181 79 276
FIREARMS RECOVERED 135 1,044 761 1,940

PERIOD
Against the PARTICULARS TOTAL
FULL-YEAR
Abu Sayyaf 2 SEM 2016 1ST SEM 2018
ND
2017

Group OPERATIONS CONDUCTED

ENEMY KILLED
1,200 163 236 1,599
124 159 50 333
ENEMY APPREHENDED 18 71 12 101
FIREARMS RECOVERED 54 181 116 351

Against the PERIOD

Bangsamoro PARTICULARS
2 SEM 2016
ND FULL-YEAR
2017
1ST SEM 2018
TOTAL

Islamic OPERATIONS CONDUCTED 249 227 135 611

Freedom ENEMY KILLED 54 193 58 305
Fighters ENEMY APPREHENDED
FIREARMS RECOVERED
2 15 4 21
3 47 54 104

Against the PERIOD

Dawlah PARTICULARS
2 SEM 2016
ND FULL-YEAR
2017
1ST SEM 2018
TOTAL

Islamiyah OPERATIONS CONDUCTED 249 668 369 1,286

ENEMY KILLED 152 954 20 1,126
ENEMY APPREHENDED 58 23 14 95
FIREARMS RECOVERED 55 869 67 991
Source: AFP

3 DND, op.cit.
 T H E P R E SI D E N T ’ S R E P O RT 7
TO THE PEOPLE
2016 - 2018

INTENSIFYING THE CAMPAIGN AGAINST LOOSE The implementation of

FIREARMS.4 Our military launched a disarmament Martial Law has provided
campaign to recover loose firearms under Martial the People of Mindanao with
Law. As a result of this campaign, several local enhanced security because
chief executives in Mindanao have turned over of the increased presence
firearms to the military beginning early 2018 as of government forces,
a manifestation of their trust and support to our particularly in areas where
peace and development agenda. the terrorist threat had
persisted.

TABLE 3.
NUMBER OF LOOSE FIREARMS
HIGH-POWERED LOW-POWERED
AREA TOTAL
FIREARMS FIREARMS “Sa lalawigan namin, when
Maguindanao 886 346 1,232 we hear Martial Law, nalipay
Lanao and (masaya) kami. We feel safe. We
Zamboanga 1,129 1,094 2,223 feel secure because we trust our
Provinces
AFP wholeheartedly.”
Zamboanga City 96 139 235
Rep. Mohamad Khalid Dimaporo
Basilan 18 0 18 1st District, Lanao del Norte
Sulu 572 4 576

4,284
Total Number of Firearms Recovered
“What I see is that, this is a big
leap for us here in Sulu. May this
surrender resolve the conflicts
because we also want peace and
2,701
High-Powered Firearms
1,583 serenity here in our province. We
hope that we can improve our
Low-Powered Firearms
partnership with the Army.”
Acting Vice Mayor Alliman Tan
Maimbung, Sulu

“We want to thank the President

for declaring Martial Law in
Mindanao because your campaign
effectively implemented the gun
control here in Sulu.”
Mayor Jusshin Muhammad
Omar, Sulu
Source: AFP-WESMINCOM

4 DND, op.cit.
 8 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

SURRENDER OF LOCAL EXTREMIST GROUPS.5 The TABLE 4. NUMBER OF SURRENDERERS

defeat of the ISIS in Marawi City, the intensified FROM LOCAL EXTREMIST GROUPS,
crackdown on terrorist elements, and the effective SECOND SEMESTER 2016-FIRST SEMESTER 2018
implementation of Martial Law in Mindanao 2ND
SEMESTER
FULL
YEAR
1ST
SEMESTER TOTAL
have convinced our sisters and brothers who 2016 2017 2018

have lost their way to abandon their extremist Abu Sayyaf 21 149 93 263
activities and return to the fold of the law. The Bangsamoro
Islamic
growing number of local extremist surrenderers Freedom - - 18 18
whom we have been welcoming into mainstream Fighters
society proves this. Dawlah
Islamiyah 1 - 46 47
Source: AFP

TABLE 5. ASSISTANCE PROVIDED

Livelihood Assistance TO MAUTE-ISIS SURRENDERERS
for Maute-ISIS Surrenderers6 Social Welfare Assistance
(DSWD)
As combatants from the Maute-ISIS group turned up in • Emergency Packages,
numbers to surrender to the government, we embarked which contain sleeping
kits, hygiene kits, and
on genuine efforts to help them return to the fold of the cooking kits
law and become part of mainstream society. As such, I • Financial Assistance
directed concerned government agencies to provide the worth PhP5,000
Maute-ISIS surrenderers with livelihood assistance that
will enable them to become productive citizens. Skills Training
(TESDA)
After the AFP profiled the 46 Maute-ISIS surrenderers, • Scholarship Programs
• Livelihood Training
the Technical Education and Skills Development Authority
(TESDA) led the many government agencies that provided Livelihood Programs
various assistance packages and interventions to the (DOLE and DTI)
surrenderers. On June 21, 2018, these agencies set up a • Emergency
One-Stop Shop for the 46 Maute-ISIS surrenderers at Camp Employment Program
Ranao in Marawi City, wherein the following assistance • Starter Kits Program
were provided: • Loan Services for
Small Businesses
Housing Programs
(Pag-IBIG and DAR)
• Future Homes Project
Agricultural Assistance
(Cooperative Development
Authority, DA, and DAR)
• Farm Inputs such
as fertilizers, palay,
vegetable seedlings,
and corn crops
• Farm Equipment
such as sprayers and
tractors
• Training on Creating
and Maintaining
Cooperatives
Health Services (DOH)
• Medical Assistance

DSWD provided emergency packages and DOH provided medical services to the A surrenderer consults the DTI’s booth in
financial assistance worth PhP5,000 each. surrenderers. the One-Stop Shop on livelihood assistance.

Sources and Photo Credits: TESDA, HUDCC

5 DND, op.cit.
6 TESDA, July 2, 2018.
 T H E P R E SI D E N T ’ S R E P O RT 9
TO THE PEOPLE
2016 - 2018

I welcome this phenomenon because the best
way to achieve lasting and meaningful peace
is to have the very people who spent their lives
fighting the government finally lay down their
arms and embrace the opportunity to live more
meaningful lives as productive citizens.
were enticed to join the insurgency the promise
of a good life. The ideology that promised a
government for the people, equality and justice,
only promoted extortion and harassment.
Because of this, we saw an increase in the number
of rebels who returned to the fold of the law.

Thus, I have directed government agencies, ENHANCING THE COMPREHENSIVE LOCAL

including the military, to look into ways to assist
these surrenderers to become advocates of peace
and productive members of their communities.
PAVING THE WAY FOR MEANINGFUL
PEACE AND INCLUSIVITY
INTEGRATION PROGRAM. In the months following
the termination of peace talks between the
CPP-NPA-National Democratic Front of the
Philippines (NDFP) in November 2017, we
implemented programs that extended social
assistance to surrendering rebels such as housing
and livelihood to support local peace efforts.

The mass surrender of local extremists and
threat groups is not confined to Mindanao alone.
This has been happening since the start of my
Administration.
The ideology that stoked the rebel movement for
nearly 50 years has led to impoverishment rather
than development, further depriving those who
I created on April 3, 2018, through
Administrative Order (AO) no. 10, Task Force
Balik-Loob to oversee the provision of social
assistance and the reintegration of surrendering
rebels into mainstream society. Composed of the
DND, DILG, Office of the Presidential Adviser
on the Peace Process (OPAPP), the National
Housing Authority (NHA), and the Office of

FIGURE 3. VALIDATED REBEL SURRENDERERS, DUTERTE ADMINISTRATION

TERMINATION OF PEACE TALKS

(NOVEMBER 2017) 955

541 540

256
182 192 207
158

3Q - 2016 4Q - 2016 1Q - 2017 2Q - 2017 3Q - 2017 4Q - 2017 1Q - 2018 2Q - 2018

Period (Quarter)
Notes: There are 3,031 validated communist rebels surrenderrers from July 2016 to June 2018.
Source: AFP-Peace and Development Office
 10 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

the President, the Task Force shall ensure the
integration of government agency efforts to
provide social interventions to the communist
surrenderers through intensified linkaging of
the Comprehensive Local Integration Program
(CLIP) of the DILG, the Payapa at Masaganang
Pamayanan (PAMANA) of the OPAPP, and other
programs of different government agencies for
former rebels under the Enhanced CLIP (E-CLIP).
I am glad that the activities of Task Force Balik-
Loob are going on full-steam, especially after the
Implementing Rules and Regulations (IRR) of
AO no. 10 came into effect on July 5, 2018. Under
the E-CLIP, former rebels who surrendered from
July 1, 2016 shall be provided with benefits and
assistance as shown in Figure 4.
Our government is also ensuring that the former
rebels are provided safety and security guarantees,
support for healing and reconciliation, legal
assistance for those with pending criminal cases,
and loan and market access for enterprising former
rebels. Through the PAMANA programs, we are
likewise providing support to the communities
hosting the former rebels. The DILG may also grant
PhP5 million to Local Government Units (LGUs)
for the establishment of halfway houses, which will
provide a conducive transition for the former rebels
as they reintegrate into mainstream society.
We have achieved the following under the
E-CLIP since its implementation in July 2018:
• The DILG has released livelihood, immediate

FIGURE 4. BENEFITS UNDER THE E-CLIP

CLIP ASSISTANCE

Reintegration Firearm Remuneration Immediate Assistance Livelihood Assistance

Assistance (PhP21,000) (PhP15,000) (PhP50,000)

ADDITIONAL ASSISTANCE UNDER E-CLIP

Legal Assistance Medical Assistance Psychosocial Assistance Loan & Market Access

Housing Access to Modified Conditional Alternative

Government Services Cash Transfer Learning System

Conditional College Tuition Payapa at Masaganang Livelihood Materials

Transitional Grant and Stipend Pamayanan Projects and Implements or
(PhP5,000) Employment Assistance
Source: DND
 T H E P R E SI D E N T ’ S R E P O RT 11
TO THE PEOPLE
2016 - 2018

assistance, and firearm remuneration to 163 • DOLE, through its Integrated Livelihood
former rebels (45 in Davao Oriental, 106 in Program, initially provided cash assistance for
Sultan Kudarat, and 12 in Sarangani).7 business starter kits to 241 former rebels in
Davao Oriental.9
• The NHA released Certificates of Entitlement
to 685 former rebels in Region XI. This includes
the shelter assistance for partners Ka Efren and Through the PAMANA
Ka Wendy, covering the cost of two lots and programs, we are likewise
the construction of their house. providing support to the
communities hosting the
• TESDA provided skills training to 363 former former rebels.
rebels (274 graduates and 89 ongoing training)
nationwide as of July 12, 2018.8

Ka Efren, former Deputy Secretary of the CPP Far South

Mindanao Region and Spokesman of the NPA Far South
Mindanao Regional Revolutionary Committee, and his
wife, Ka Wendy, who served as a medical staff of the
group, surrendered on January 15, 2018 to the 27th Infantry
Battalion in Koronadal City, South Cotabato.

During the visit of the former rebels to Malacañang, Ka

The President, with the officers of the Eastern
Efren said he and his family left the revolutionary life Mindanao Command and some members of his Cabinet,
because they were tired of the armed struggle, and the during the presentation of former rebels Ka Efren and
ideology of Marxism-Leninism-Maoism was no longer true Ka Wendy on January 20, 2018.
Photo Credit: PCOO
and relevant to society. He acknowledged that through
the E-CLIP, the former rebels are now seeing the importance given to them by the government, especially
the President. Ka Efren shared that since he surrendered with his family, the government has treated them
well, and has fulfilled its promises of giving them various assistance such as housing and livelihood. He
now appreciates having the chance to live free without the fear of being arrested or killed and spending
more quality time with his son.

Ka Efren believes that the President will continue to do more in his remaining four years in office. He also
expressed willingness to support the President in achieving peace and prosperity. He also encouraged
his fellow former rebels not to waste the opportunity given to them by the President to start anew. He
encouraged them to make the most of the benefits they have received as they cannot rely on the
government all their lives. To their comrades who are still active in the NPA, Ka Efren wished that they too
would surrender, leave the armed struggle for good, and reunite with the government. 10

7 It may be noted that from July 2016 to June 2018 (prior to the E-CLIP effectivity), the DILG assisted 866 former rebels under the CLIP. (Source: DND
and DILG, July 19, 2018.)
8 Prior to the implementation of the E-CLIP, TESDA had assisted 203 former rebels under its Skills Training for Special Clients.
9 DOLE, Update on the release of assistance to former rebels in Davao Oriental, July 12, 2018.
10 Ka Efren’s Speech during the Merienda with Former Rebels, March 6, 2018.
 12 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

As proof of my sincerity to end the conflict with the

communist rebels, I met with the former rebels on
various occasions. I also invited the 683 former rebels
I met on December 21, 2017 to visit Manila and the
Malacañan Palace. In three separate engagements,
I encouraged them to see the government as their
partner in realizing an equitable, just, and peaceful
nation as we offer a tangible chance for change,
rather than a promise bereft of truth.

However, for these efforts to be sustained,

national and local government agencies must
work together to continue and strengthen the
implementation of the E-CLIP, and to make the
necessary arrangements to ensure that all needed The President during the merienda with the former rebels in February 2018.
resources are available for this endeavor. Photo Credit: PCOO

Release of E-CLIP Assistance in Davao Oriental,

Sultan Kudarat, and Sarangani
Under the E-CLIP, the Task Force Balik-Loob awarded various assistance
packages to former rebels in Davao Oriental, Sultan Kudarat, and
Sarangani. Among those received were livelihood and immediate
assistance, and firearm remuneration from the DILG; cash assistance
for business starter kits from the DOLE; and completion certificates for
technical/vocational skills training from the TESDA.

In Davao Oriental, 241 former rebels received various assistance, i.e., CLIP
assistance, business starter kits, and TESDA completion certificates
on July 11, 2018. Former rebels are also being given psychosocial
intervention and moral recovery assistance in cooperation with the
religious sector. Davao Oriental is the only town in the country with an
operating halfway house for transitioning former rebels - the Happy
Home. This was established through the efforts of the local government
of Davao Oriental, OPAPP, civil society, and the community.

On July 11, 2018, 106 former rebels in Sultan Kudarat, mostly members
of Indigenous People’s communities, were also awarded immediate
and livelihood assistance by the DILG. Sultan Kudarat Governor Pax
Mangudadatu committed to provide further livelihood assistance to
former rebels through the provision of boats or hogs.

On July 12, 2018, 12 former rebels from Sarangani also received their
immediate and livelihood assistance. Sarangani is working on constructing
its own halfway house, funded by the local government and the DILG.
Source and Photo Credit: DND

UPHOLDING PEACE IN THE BANGSAMORO. The
ISIS failed in their objective of establishing their
wilayat in the country because of the sustained
support of our moderate Muslim brothers and
sisters to the government and the ongoing peace
process in the larger Bangsamoro.
I have always expressed my desire for both
houses of Congress to expedite the passage of
the Bangsamoro Organic Law. When I ran for
President, I made a commitment to the Filipino
people to bring peace to Mindanao. I have
continuously emphasized that now is the right
time for the government to pave the way for
the Bangsamoro people to have a fruitful and
productive future, which they have yearned for
hundreds of years since the Spanish colonization.
As a nation, we should provide hope to the Moro
people.
It is my dream for Mindanao to have lasting peace.
The threat of terrorism and violent extremism
in Mindanao will not be addressed unless the
Bangsamoro Organic Law is passed into law. It is
one of the durable solutions to thwart invitations
to another bloody episode as that of the Marawi
ConCom Chairman Reynato S. Puno handing over to the President a copy of the draft Constitution “Bayanihan Federalism” in Malacañan Palace on July 9, 2018.
Photo Credit: ConCom
T H E P R E SI D E N T ’ S R E P O RT 13
TO THE PEOPLE
2016 - 2018
City siege. It is for this reason that I expanded
the Bangsamoro Transition Commission (BTC),
which drafted the Bangsamoro Organic Law. I
certified its passage by Congress as urgent on
May 29, 2018.
On July 27, 2018, I signed Republic Act (RA)
no. 11054, or the Bangsamoro Organic Law, a
landmark legislation that embodies the aspirations
of my fellow Mindanaoans for recognition, and
the rectification of the social injustices they
have suffered for so long. I thank both Houses
of Congress for expediting the passage of the
Bangsamoro Organic Law. The next leg of our
journey is the holding of a plebiscite to ratify
this law and we need the support of all sectors
of society to realize greater opportunities for the
people of Mindanao.
FEDERALISM: FROM PEACE TO DEVELOPMENT.
The Bangsamoro Organic Law shall serve as a
strong indication of the nation’s openness and
resolve to sustain the gains of peace by rectifying
a politically flawed government system that
has perpetuated the underdevelopment of the
Bangsamoro. This level of political maturity is
 14 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

what we need to promote systemic changes in the

country and finally reap the dividends of peace.

Further along this path of rectifying our flawed

government system, I have set our forward
course towards the unchartered shift to a federal
government as our flagship agenda to attain
genuine change. This is partly due to my experience
as Mayor of Davao City for 23 years, when in times
of need, we had to heavily rely on the central
government in Manila for assistance. This, to me,
stunted the growth of the countryside, and stymied
the development initiatives of local governments.

Through the concerted efforts of the members of

the Consultative Committee (ConCom) to Review
the 1987 Constitution, led by former Chief Justice
Reynato S. Puno, I am glad to report that we have
drafted a federal constitution – the Bayanihan
Federalism – which my Administration presents
as a proposal to realize meaningful change in
the country.11 We thank all the members of
the Committee, especially those who came out
from their retirement, for their valuable services
in crafting this draft Federal Constitution. We
would like to extend our particular gratitude to
Former Chief Justice Reynato S. Puno and Former
Senate President Aquilino Q. Pimentel, Jr.12 (see
Annex A Salient Points of the ConCom Proposed
Constitution).
UPHOLDING LAW AND ORDER
The President at the PNP Chain of Command Ceremonies, April 19, 2018.
Photo Credit: PCOO
However, to be more effective, we need credible
law enforcement institutions whom our citizens
can trust. Thus, we embarked on reforming our
Philippine National Police (PNP), making it a
priority for our police force to regain the public’s
trust.
RESTORING TRUST IN THE POLICE FORCE. In the
past year, several incidents involving erring
police officers have stained the reputation of
our policemen. Notable among these is the
kidnapping and killing of a Korean national, Jee
Ick-Joo within the PNP Headquarters. The PNP
personnel involved in this case were charged
with kidnapping for ransom with homicide, and
kidnapping and serious illegal detention.

The foundation of a secure nation is law and
order. We cannot achieve peace without law and
order. We cannot reform our political systems
without law and order. As such, I have directed
all law enforcement agencies to seize and sustain
the gains of the fight against criminality and
continue the campaign against illegal drugs.
I vow to destroy the scalawags in uniform who
are using their posts to commit wrongdoings. I
take a strong stand against this and I will never
tolerate it. I cannot let our police force, the very
people we trust with our safety, be controlled by
those who have lost their integrity, passion, and
dedication to the service and the Filipino people.

11 ConCom, July 20, 2018

12 The other members of the ConCom who retired from public service are Former Associate Justices Antonio Eduardo Nachura and Bienvenido
Reyes, Retired Lt. Gen. Ferdinand Bocobo, and Retired Commodore Rex Robles.
 T H E P R E SI D E N T ’ S R E P O RT 15
TO THE PEOPLE
2016 - 2018

Thus, I directed the PNP to implement an the PNP Internal Cleansing Program has filed
institution-wide internal cleansing program administrative cases against 498 PNP personnel
to rid the organization of scalawags. To date, (see Table 6).13

TABLE 6. ADMINISTRATIVE CASES FILED AGAINST PNP PERSONNEL

POSITIVE/INVOLVED IN ILLEGAL DRUGS

498
Total Number POSITIVE IN ILLEGAL DRUGS
of PNP Personnel

261 3 2
Positive and
Involved in Illegal
Drug Activity

Dismissed Case Exonerated

2016 2017 2018 from the Service Dismissed

158 315 25 20 1 6 20 1 7 20 1 8
65 182 14
20 1 6 20 1 7 20 1 8
1 1 1
20 1 6 20 17 2 0 18
0 2 0

INVOLVED IN ILLEGAL DRUGS

92
Dismissed
9 23 18
Case
89 1
from the Service Demoted Suspended Dismissed Exonerated Reprimanded
2 01 6 2017 2018 2016 2017 2018 2 0 1 6 20 1 7 20 1 8 20 1 6 20 1 7 20 1 8 20 1 6 20 1 7 20 1 8 20 1 6 20 17 2 0 18
45 40 7 3 5 1 11 12 0 13 5 0 20 68 1 0 0 1
Source: PNP

I vow to destroy the

scalawags in uniform who • The PNP Internal Cleansing Program has
are using their posts to resulted in the dismissal from service of 1,828
commit wrongdoings. PNP Personnel (see Table 7).

TABLE 7. ACTIONS ON ERRING PNP PERSONNEL, JULY 2016 - JUNE 30, 2018

2016 2017 20 1 8 TOTAL 20 1 6 20 1 7 20 1 8 TOTAL

Dismissed from the Service 699 1,020 109 1,828
Demoted 158 194 10 362
Suspended 1,929 1,562 98 3,589
Forfeited Salary 74 71 2 147
Reprimanded 161 218 24 403
Restricted 14 15 0 29
Witholding of Privileges 12 31 0 43
Admonished/Warned 12 7 0 19
Cases Dismissed 730 629 65 1,424
Exonerated 1,325 1,297 120 2,742
Others14 37 31 0 68
Total 5,151 5,075 428 10,654

Source: PNP

13 PNP, July 13, 2018.

14 Refers to Restored, Reappointed, Reinstated, or Charged from Leave Credits.
 16 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

INCREASING CITIZEN ENGAGEMENT IN KEEPING

Citizen’s Call Lead to COMMUNITIES SAFE. The large-scale cleansing in
Arrest of Highway Patrol the PNP in the past year has not only restored
Group (HPG) Personnel 15 public trust and confidence in the organization
but also produced a citizenry that takes an
The 8888 hotline has been a useful tool active role in maintaining peace and order in
in the resolution of an extortion case
our communities. I have witnessed a dramatic
in Iligan City. Two (2) HPG personnel
and two (2) civilian auxiliaries were
increase in the calls and reports made through
caught flagging down motorists for the 911 and 8888 hotlines, some of which have
allegedly committing traffic violations. led to arrests and prevention of crime.
The complainant reported that the
personnel demanded PhP1,500 for From the start of its implementation on November 5,
non-issuance of citation ticket. In the 2017 to June 30, 2018, 4,667 cases were reported and
entrapment operation conducted, an referred to the PNP through the Hotline 8888.16 As
amount of PhP5,000 was found in the
for 911, we are seeing increased reports on cases of
office of the erring personnel. Through
citizen participation, this illegal activity
theft, physical injury, and public disturbances.
has come to an end and the responsible
personnel have been arrested. REDUCED INCIDENTS OF CRIME. The PNP reforms
and the increasing citizen engagement in peace
and order have resulted in a significant decrease in
the number of crimes in the country. The decrease
can primarily be observed in focus crimes, i.e.,
theft, robbery, carnapping of motor vehicles,

TABLE 8. ANTI-CRIME ACCOMPLISHMENTS17

Index Crimes Total Crime Volume Crime Clearance Efficiency Crime Solution Efficiency

-29.07% -16.82% 6.24

percentage points
6.75
percentage points
124,477 78.49
568,291 72.25
65.82
88,296 472,696 59.07

July 2016-June 2017 July 2017-June 2018 July 2016-June 2017 July 2017-June 2018 July 2016-June 2017 July 2017-June 2018 July 2016-June 2017 July 2017-June 2018

Source: PNP

15 PNP, op.cit.
16 Ibid.
17 Ibid.
 T H E P R E SI D E N T ’ S R E P O RT 17
TO THE PEOPLE
2016 - 2018

TABLE 9. FOCUS CRIMES18 In 2017, I directed the ICAD to intensify intelligence

and law enforcement efforts against big foreign
JULY 2016 - JUNE 2017 JU LY 2017 - J UNE 20 1 8 drug syndicates, local drug manufacturers, and
other source of illegal drugs. The steep increase
CRIME NUMBER OF INCIDENTS DECREASE
(IN PERCENT) in street prices of shabu per gram from around
Theft 41,175 PhP8,000 to PhP25,000 indicates that our supply-
33.52% side interventions have curbed the demand for
27,374
drugs. Let me note the following achievements:
18,071
Robbery
13,098
27.52% DISMANTLING OF THREE (3) CLANDESTINE
LABORATORIES AND A CHEMICAL WAREHOUSE IN
6,592
APRIL 2018. Joint elements of the Philippine Drug
Carnapping
of Motorcycles 21.86% Enforcement Agency (PDEA), PNP, and Armed
5,151
Forces of the Philippines (AFP) conducted a
Carnapping 586
series of operations from April 12-16, 2018 in
of Motor 30.55% Cavite City, Batangas, and Malabon City. This led
Vehicles 407 to the seizure of 481.1 grams of shabu and large
amounts of controlled precursors and essential
9,204
Rape 23.96% chemicals used in the production of Ecstasy, and
6,999
the arrest of Chinese chemists, Tian Baoquan,
34,230
Guo Zixing, and Yue Hailong; their supervisor,
Physical
Injury 26.37% Hong Dy; and handler, Xie Jiansheng. They are
25,202
members of the Dragon Wu drug ring.
Source: PNP

carnapping of motorcycles, rape, and physical

injury, which are the most frequent causes of FIGURE 5. ANTI-ILLEGAL DRUG
ACCOMPLISHMENTS,
peace and order disturbance in our communities. AS OF JUNE 30, 2018
SUSTAINING THE CAMPAIGN AGAINST ILLEGAL 102,630 1,161 147,802
DRUGS.19 The fight against illegal drugs remains Operations Minors Drug Personalities
Conducted Rescued Arrested
the focal point of my campaign to eradicate crime
and promote peace and order. The Inter-Agency 12 4 183 207
Committee on Anti-Illegal Drugs (ICAD)20 is Clandestine Chemical Drug Dens Marijuana
Laboratories Warehouse Dismantled Plantation Sites
sustaining the momentum to ensure that all facets Dismantled Dismantled Eradicated
of drug supply and use are addressed.
13,707
Ecstasy seized (pcs)
2,738.73 157.24
Shabu seized (kg) Cocaine seized (kg)
We are continuing our intensified crack down on

21.29
Total Value of
drug syndicates, drug lords, and drug pushers, Drugs Seized
and from July 1, 2016 to June 30, 2018, we (in Billion PhP)
achieved significant results (see Figure 5). Source: PDEA

18 PNP, op.cit.
19 PDEA, July 19, 2018.
20 ICAD was formed through EO no. 15 dated May 6, 2017 to ensure that each member agency shall implement and comply with all policies, laws and
issuances pertaining to the government’s anti-illegal drug campaign in an integrated and synchronized manner. It is chaired by the PDEA.
 18 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

DISMANTLING OF 56 DRUG DENS, which resulted

in the arrest of 357 drug personalities and seizure
of 1,579.95 grams of shabu, 7,303.12 grams of
marijuana, and 15 grams of cocaine.

SEIZURE OF 88.53 KILOGRAMS OF SHABU, 1,006

PIECES OF ECSTASY TABLETS, AND 1,109.5 GRAMS
OF HIGH-GRADE MARIJUANA, all worth more
than PhP560 million, from mail and parcel
interdiction operations done from January to Chinese chemists, Tian Baoquan and Guo Zixing were arrested by
June 2018. This included 27 parcels originating joint elements of the PDEA and other law enforcement authorities in
Batangas on April 12, 2018.
from California, United States of America (USA). Photo Credit: PDEA
The PDEA noted the increase in the incidences of
smuggling of drugs into the Philippines through
courier services.

Our intensified law enforcement activities,

monitoring, and surveillance have restricted the
in-country production and distribution of drugs.
Thus, it is not surprising that in recent months,
we have witnessed several attempts to smuggle
illegal drugs into our shores. From January 1 to
May 31, 2018, seven (7) incidences of recovery
of cocaine smuggled through the seas were
recorded. A total of 89,636.94 grams of cocaine
and 12.75 liters of liquid cocaine, all worth
PhP412.80 million were intercepted, as follows:21
• On April 15, 2018, our fishermen found
around 27 kilograms of cocaine worth PhP162
million in a plastic container floating at sea off
Camarines Sur.
A medium-scale clandestine shabu laboratory located in Tinajeros,
Malabon City was dismantled by the PDEA, PA, and PNP on April 13, 2018.
Photo Credit: PDEA
Before July 2016, only three (3) international
drug syndicates were known to our authorities:
the African Drug Syndicate, the Chinese Drug
Syndicate, and the Mexican Drug Syndicate.
Due to the intensified intelligence, investigation,
and negation efforts of our law enforcement
authorities, specific drug groups were confirmed
to be operating in the country.

• On February 7, 2018, two speedboat operators
reported a blue plastic container floating in the
waters off Divilacan, Isabela. The container
contained eight packs or 18.84 kilograms of
cocaine worth PhP79.14 million.
Last year, the PDEA confirmed the presence and
extensive operations of three (3) transnational
drug trafficking organizations (DTO) in the
country, as follows: United Bamboo Gang Triad,
14K Triad, and the Sun Yee On Triad.

• On January 3, 2018, 33 kilograms of cocaine These DTOs can ship up to three (3) tons of
worth PhP142 million were seized in Matnog, shabu through shipside smuggling in the high
Sorsogon. seas and air and sea ports. Furthermore, the

21 PDEA, June 8, 2018.

 T H E P R E SI D E N T ’ S R E P O RT 19
TO THE PEOPLE
2016 - 2018

I cannot allow drug syndicates to continue

destroying the lives of our countrymen,
especially the Filipino youth. To restrict and
prevent the transit of illegal drugs in our waters,
the PDEA established seaport interdiction
units in their regional offices and enhanced
their cooperation with Philippine Coast Guard
(PCG) and Philippine Ports Authority (PPA).
Furthermore, the Maritime Industry Authority
(MARINA) agreed to deputize the PDEA to
inspect domestic and international vessels and
public and private ports nationwide.

Eleven packs of shabu with a total weight of 5.5 kilograms were
intercepted by the NAIA-Inter-Agency Drug Interdiction Task Group during
mail and parcel interdiction operation on December 4, 2017 at the NAIA.
Photo Credit: PDEA
Golden Triangle, a notorious drug-producing
region operating near the borders of Thailand,
Laos, and Myanmar, is involved in the large-
scale production of shabu for distribution to
the Asia Pacific region. Its presence in the
country was recently confirmed following the
abovementioned dismantling of clandestine
laboratories in Batangas and Malabon City in
April 2018.
Aside from the intensified anti-illegal drug
operations, I also zeroed in on the drug
distribution channels managed by local chief
executives, government officials, and law
enforcement personnel. These drug coddlers have
no place in my Administration. My anti-illegal
drug campaign is only as strong as the public’s
confidence in our leaders and institutions. This
is why I instructed the PDEA to leave no stone
unturned in enforcing the law against the illicit
drug activities of government officials and
personnel. Among the 6,552 drug personalities
listed by PDEA as of May 31, 2018, 335 were
elected officials with the following status:

FIGURE 6. ELECTED OFFICIALS INVOLVED IN ILLEGAL DRUG ACTIVITIES

335 56 5
Elected officials
are currently
being validated:
have been were
7 Congressman
2 Vice
Governor arrested suspended

2 63
3 20
Provincial
Board Member Mayor

13 Vice
Mayor 88 Barangay
Captain
have been are awaiting
112 Barangay
Kagawad 48 Former Elected
Officials
dismissed confirmation of
dismissal

Source and Photo Credit: PDEA

 20 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N
LAYING THE GROUNDWORK FOR A HOLISTIC
AND COMPREHENSIVE DEMAND AND HARM-
REDUCTION STRATEGY. Our supply-side
interventions will be meaningless if we do not
complement them with concrete, just, and
lasting solutions that encompass all facets of
drug supply and use. That said, the gains we
have achieved in our intensified law enforcement
operations must be met with equal force, depth,
and scope of cooperative efforts among and
between all government agencies, LGUs, and
the communities.
This is why we formed the ICAD in March
2017 and for the first time in the history of the
anti-illegal drug campaign in our country, key
officials from the security and justice, health
and education, social welfare, and governance
sectors came together on March 13, 2017 to
come up with a holistic approach to address the
ill effects of illegal drugs. The ICAD has four (4)
clusters: Enforcement, Justice, Advocacy, and
Rehabilitation and Reintegration. The latter two
(2) clusters highlight that demand-reduction,
treatment, and other facets of drug use are just
Our supply-side
interventions
will be meaningless
if we do not
complement them
with concrete,
just, and lasting
solutions that
encompass all
facets of drug
supply and use. crime and anti-illegal drug campaigns of
22 PDEA, op.cit.
23 DILG, July 10, 2018.
as important as supply-reduction strategies.
These reflect the reality that the drug problem
is cross-cutting and multi-faceted, affecting
people’s quality of life and consequently stymies
economic development. Based on this strategy, I
want to highlight the government’s efforts on the
following:
• Advocacy. The people are our partners for
change. As partners, I deem it our responsibility
to keep the public informed of the government’s
anti-illegal drug efforts and communicate the
ills of illegal drug use. On June 21, 2017, the
ICAD launched Rehabinasyon, a nationwide
information dissemination program, which
commits to provide a truthful picture of the
anti-illegal drug campaign. Since its launch,
Rehabinasyon has conducted seven (7) Town
Hall meetings in Iloilo, Tacloban, Dumaguete,
Zamboanga, General Santos, Cebu, and
Davao City. These meetings have become an
avenue for the national officials to interact
and converse with the Barangay Officials and
residents to resolve the drug problem in their
respective localities.
Furthermore, from 2017 to the present, the
ICAD, in partnership with other government
institutions and private entities, conducted
402,418 preventive education and community
involvement activities, which reached more than
62 million people from all sectors of society22,
effectively covering 5,275 target barangays and
capacitating community and social mobilizers
from 757 cities and municipalities.23
• Recovery, Reform, Rehabilitation, and
Reintegration Programs. The intensive anti-
government resulted in the unexpected and
massive influx of 1,274,148 surrenderers who
 T H E P R E SI D E N T ’ S R E P O RT 21
TO THE PEOPLE
2016 - 2018

wish to return to their healthy and normal lives

free from drugs. I could not turn my back on
these million hopefuls. It is my responsibility
to ensure that treatment and rehabilitation
facilities are accessible to those who wish to
avail of government or private services to lead
fruitful lives again. Last year, we embarked on
establishing in-patient drug abuse treatment and
rehabilitation centers (DATRC) nationwide. As
of end-June 2018, the DATRC Inter-Agency Task
Force supervised the donation negotiations and
construction of 18 Treatment and Rehabilitation A Rehabinasyon booth was set up during the National Information
Convention 2018 from February 19-21, 2018 at the SMX Convention
Centers (TRCs) (see Table 10). Center in SM Lanang, Davao City.
Photo Credit: PCOO

TABLE 10. LOCATION OF TREATMENT AND REHABILITATION CENTERS,

AS OF JULY 6, 2018

Existing MOA Drafting Stage Groundbreaking Completed24

1 Palayan, Nueva Ecija 9 Las Piñas, NCR 14 Trece Martires, Cavite
(Mega DATRC)
2 Samal Island MOA Signing Stage Inspection
3 Marawi, Lanao Del Sur 10 Cortes, Bohol 15 Bansud, Oriental
(temporarily used as a hospital Mindoro
for Marawi rehabilitation) Preparation Stage 16 Camarines Sur
11 Patikul, Sulu
Under Negotiation Completion Stage
4 Taguig, NCR Construction Ongoing 17 Malaybalay, Bukidnon
5 Sison, Pangasinan 12 Kawas, Sarangani 18 Malagos, Davao25
6 Pilar, Bataan 13 Alegria, Agusan Del Sur
7 San Ildefonso, Bulacan
8 San Fernando, Pampanga

Source and Photo Credit: DATRC PMO

24 The groundbreaking ceremony was held on July 19, 2018.

25 Security, Justice, and Peace Cluster, 2018 Pre-SONA Report, July 2018.
 22 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

Three (3) TRCs are now operational: Palayan,

Nueva Ecija, also known as the “Mega DATRC”;
Samal Island; and Marawi City, Lanao del Sur.
From January 1, 2017 to April 30, 2018, 1,575
outpatient, 1,903 inpatient, 106 readmission
cases, and 925 graduates were recorded.

We are also pursuing the following programs on

drug-treatment and rehabilitation.

`` Healthcare Financing for Medical

Detoxification.26 In 2016, we launched the
We embarked on establishing in-patient drug abuse treatment and
Philippine Health Insurance Corporation rehabilitation centers nationwide.
(PhilHealth) Medical Detoxification Package Photo Credit: DOH
to cover in-patient services for the first stage
of drug addiction treatment. With a benefit `` Community-Based Treatment Drug Abuse
rate of PhP10,000, the package may be availed Recovery Facilities.27 For illegal drug
of by an eligible PhilHealth beneficiary in any surrenderers who do not meet the severity
government hospital and DOH-licensed and criteria for compulsory confinement in
PhilHealth-accredited DATRC. DATRCs, we have put up pilot community-

TABLE 11. STATUS OF PILOT COMMUNITY-BASED TREATMENT

DRUG ABUSE RECOVERY FACILITIES, AS OF MAY 2018
FACILITY/LOCATION CONSTRUCTION STATUS ONGOING TREATMENT COMPLETED TREATMENT

Tarlac Recovery Clinic

(Tarlac City, Tarlac) Operational 29 20

Calapan Recovery Clinic

(Calapan City, Oriental Mindoro) Operational 635 346

Mandaue Recovery Clinic

(Mandaue City, Cebu) For construction - -

Compostela Valley Recovery Clinic

(Nabunturan, Compostela Valley) For construction - -

Ifugao Recovery Clinic

(Lagawe, Ifugao) For construction - -
Pasay City Recovery Clinic
(Pasay City) For construction - -

Source: DOH

26 PHIC, Tamang Sagot: PhilHealth Circular no. 2016-0030 (Medical Detoxification Package), https://www.philhealth.gov.ph/circulars/2016/TS_
circ2016-030.pdf.
27 DDB Board Resolution no. 4 (s. 2018) on the “Establishment and Operation of Pilot Community-Based Treatment Drug Abuse Recovery Facilities
(Recovery Clinics and Homes)”; and DOH, Status of Pilot Community-Based Treatment Drug Abuse Recovery Facilities, July 2018.
 T H E P R E SI D E N T ’ S R E P O RT 23
TO THE PEOPLE
2016 - 2018

Around 100 drug surrenderers participated in the Yakap Bayan Project or USAD (United Alliance Against Dangerous Drugs), which aims to rehabilitate
drug surrenderers by training them as disaster responders, on December 13, 2017 in Lucena City.
Photo Credit: DSWD

based facilities to serve as voluntary society organizations to provide medical,

pathways to accessible and affordable
treatment and rehabilitation services. These
facilities are being established with financial
and technical assistance from the DOH and
will be managed by their respective LGUs.
As of May 2018, two (2) of the six (6) facilities
targeted to be established in six (6) identified
areas in the country have been completed and
are operational. The remaining four (4) are for
construction.
`` Yakap Bayan Framework of Intervention.28 Of
the more than one million surrenderers, the
DOH estimates that 90 percent are low-risk.
This means that they have mild substance
use disorder, which can be treated through
general interventions and various community
support or treatment programs, without
needing closed medical interventions in a
TRC. The DSWD led an effort to integrate
available resources of government and civil
psycho-social, occupational, and spiritual
support to those undergoing rehabilitation.
As of March 2018, the DSWD has conducted
41 Yakap Bayan Orientations in different
LGUs in Luzon, Visayas, and Mindanao.
`` Other Social Services. Other services
provided by the DSWD in support to the
program include:
ƒƒ Immediate medical assistance through
the Expanded Assistance to Individuals in
Crisis Situations (EAICS);
ƒƒ Cash-for-Work and Food-for-Work;
ƒƒ Family Drug Abuse Prevention Program
(FDAPP);
ƒƒ Family Development Sessions
(for 4Ps Beneficiaries); and
ƒƒ Provision of Sustainable Livelihood
Program (SLP) for qualified recovering
drug personalities.

28 DSWD, July 6, 2018.

 24 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N
TABLE 12. STATUS OF COMMUNITY-BASED
REHABILITATION PROGRAM AND AFTER CARE
LGU NO. OF SURRENDERER
Ifugao 602
Santol, La Union 103
Lucban, Quezon 155
Tagudin, Ilocos Sur 608
Quezon Provincial Police Office 25,100
Total 26,568
Source: DSWD
At present, 522 surrenderers are undergoing
rehabilitation while 1,944 are being provided with
aftercare services under the Community-Based
Rehabilitation Program (CBRP).
This paradigm shift entails a whole-of-nation
approach in reducing the demand for illegal drugs
and the rehabilitation of drug addicts, that not
only involves the participation of relevant agencies
but also the cooperation of the local communities.
We have emphasized that we need everyone in the
community to embrace this role in ensuring that no
more lives will be wasted because of illegal drugs.
CAPACITATING OUR BARANGAYS AND ENGAGING
THE CITIZENS IN THE CAMPAIGN. Our police force
and law enforcement authorities can only do so
much in eliminating drug supply and bringing
to justice the criminals behind illegal drugs. To
genuinely effect change, we must ensure that our
supply-side interventions lead to tangible and
positive outcomes in our communities.
In the first semester of 2017, we piloted, for the
first time, a Barangay Drug Clearing Program
involving 52 barangays. These barangays were
declared drug-free in July 2017. This year, out of
the 13,661 identified drug-affected barangays, we
cleared 5,077 or 37 percent.
29 PNP, op.cit.
30 PDEA, op.cit.
UNDERGOING REHABILITATION UNDERGOING AFTERCARE
45 196
- 97
- 85
448 -
29 1,566
522 1,944
The barangay, as the basic political unit of the
country, is the heart of my campaign against
illegal drugs. The reinvigorated implementation
of the Barangay Anti-Drug Abuse Council
(BADAC) will enable our citizens to take part in
eliminating illegal drugs. Composed of barangay
officials and reputable citizens, the BADAC
identifies drug-affected areas within their
community and consolidates information to form
a drug watchlist for validation with the local PNP
unit. Hence, the BADAC assists the local PNP in
the arrests of identified drug pushers and users in
their respective barangays.
The BADAC validation process also fosters
accountability among police personnel as the
latter are not allowed to arrest a suspect whose
name does not appear in the BADAC drug
watchlist. Through this mechanism, there is
increased accountability among law enforcers to
avoid unlawful arrests.29
Since last year, we have declared drug-free three
(3) provinces, namely, Batanes, Romblon, and
Southern Leyte . These provinces have successfully
undergone drug-clearing operations through the
partnership of the people and government, borne
out of trust in our law enforcement authorities.30
 T H E P R E SI D E N T ’ S R E P O RT 25
TO THE PEOPLE
2016 - 2018

FIGURE 7. DRUG-CLEARED PROVINCES Aside from assisting in law enforcement and

illegal drug clearing operations at the barangay
level, equally important is the BADAC’s function
to integrate all government and non-government
efforts to come up with solutions to the illegal
drugs problem based on their barangay’s specific
needs. This program engages different sectors
Batanes of society to become partners in reforming our
barangays.

In involving the community, we recognize that all

of us has a stake in winning the war against drugs.
The illegal drug problem is unforgiving and
Romblon indiscriminating; it destroys lives and families,
and if left unaddressed, it can easily destroy the
Filipino nation. Strengthening the barangay and
coming together for our communities is the best
chance we have in combatting illegal drugs. It
is my hope that in time, every Filipino would
realize that the anti-illegal drug campaign is
Southern the bitter cure that we need to endure to address
Leyte
the ills of our society and enable our people to
optimize their potentials, live comfortably, and
take part in nation-building.
Source: PDEA

FIGURE 8. CAPACITATION OF THE BADAC

• Oversee implementation • Assist in the implementation

of plan of action of activities/interventions
• Approve funding • Monitor BADAC
Assist law enforcement
authorities
in anti-illegal drug
PLAN
OF ACTION

Provincial Anti-Drug City/Municipality Barangay Conduct anti-illegal

Abuse Council Anti-Drug Abuse Council Drug Abuse Council drug preventive
education campaigns
Refer individuals to TRCs • Submit reports
to CADAC
Establish one-stop shop facilities • Submit list of
for processing applications for individuals for
confinement of drug dependents referral to TRCs
Monitor individuals
• Submit reports and undergoing
accomplishments comunity-based
rehabilitation
Source: DILG
treatment
 26 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

WAY FORWARD: FURTHER Through the implementation of the Bangon

ERADICATING THREATS TO PEACE Marawi Comprehensive Rehabilitation and
AND SECURITY Recovery Plan (BMCRRP), we will make
Marawi City and surrounding communities
NEVER AGAIN MARAWI. We are committed to peaceful, vibrant, productive, and resilient to
addressing the immediate needs of our sisters and risks of conflict and other disasters. We have
brothers affected by the Marawi City conflict. The also integrated culture in the BMCRRP’s priority
Siege caused PhP11.62 billion worth of damages31 Programs, Projects, and Activities (PPAs), which
and PhP6.6 billion in losses32 in Marawi City, are targeted to be implemented until 2022 and
Butig and Piagapo in Lanao del Sur. with the corresponding budgetary requirement
totaling PhP46.50 billion (See Table 13).

TABLE 13. BANGON MARAWI COMPREHENSIVE REHABILITATION

AND RECOVERY PROPOSED PLANS, PROGRAMS, PROJECTS, AND ACTIVITIES
SECTOR
Physical Infrastructure
(Number of PPAs: 237)
Social Services
(Number of PPAs: 68)
BUDGETARY REQUIREMENT*
DESCRIPTION
(IN BILLION PHP)
Repair, rehabilitation, and reconstruction of facilities and services for
transportation, utilities, telecommunication facilities, community facilities, and
social infrastructures
21.67
Restoration of social services particularly education, health, and nutrition, and
5.12
provision of social welfare services for affected communities and vulnerable groups

10.16
Housing and Settlement Housing assistance programs on transitional shelters, permanent housing,** and
(Number of PPAs: 28) shelter finance
Livelihood and Business Employment generation, provision of agriculture and fishery production support
Development
(Number of PPAs: 267)
services, provision of financial and non-financial capital, skills development, and
capacity enhancement to rebuild sources of income and livelihood
7.50
0.71
Local Governance and Rebuilding and strengthening of local governance, social healing and peace
Peace Building building, and re-establishing security

1.40
Land Resource Land administration, debris and solid waste management, water quality assessment
Management and management, and resource management

* Identified funding sources include the National Disaster Risk Reduction and Management Fund (NDRRMF).
** The needed 3,500 permanent housing units shall be constructed for the totally displaced. Of the 3,500 units, 2,000 shall be constructed by
San Miguel Foundation, while the remaining 1,500 shall be constructed by the government and other partners, i.e., UN Habitat.
Source: HUDCC

A separate rehabilitation and recovery program We are prioritizing peace and development
will be implemented in the most affected area in the rehabilitation and recovery program to
of Marawi City, which covers 24 barangays. create livelihood and employment, improve the
The program is targeted for completion in delivery of social services, and strengthen local
2021 through a Joint Venture Agreement with capacities so that the people of Marawi can build
a private entity. back a peaceful and progressive Islamic city that
is resilient to violent extremism.

31 Refers to the destruction of physical assets in a disaster-affected area. It is measured in physical units and its monetary value expressed in terms
of replacement costs according to prices prevailing just before the event. (Source: NDRRMC, March 7, 2018).
32 Refers to the changes in economic flows arising from the disaster, such as decline in output of the productive sector, lower revenues, higher
operational costs in provision of services, unexpected expenditures to meet humanitarian needs; expressed in current values. (Source: Ibid).
 T H E P R E SI D E N T ’ S R E P O RT 27
TO THE PEOPLE
2016 - 2018

Transitory
Transitory site site
Transitory site
I made a pledge that the ISIS, or what is left of it, MARAWI Transitory
MARAWI BARANGAYS
BARANGAYS
site
Pantar
Pantar
will never gain foothold in our country. I shall MARAWI BARANGAYS
MARAWI Indirectly
BARANGAYS
Indirectly affected barangays
affected barangays
Pantar
Pantar
Indirectly
site affected barangays
see to it that that another Marawi siege will Transitory
Indirectly affected barangays
MARAWI Less
Less affected
affected barangays
barangays
never happen to us again in the future. Towards
BARANGAYS Pantar
Less affected barangays
Less affected
Indirectly barangays
affected barangays

this end, I directed our forces to continue the Most affected

Most
Most
Less
affected barangays
affected
affected
barangays
barangays
barangays
Most affected barangays
crackdown not only on terrorist groups but Most
Most
Most affected
affected
affected barangays/
barangays/
barangays
Most affected barangays/
also on narco-politicians and lawless elements no
no
Most return
return areas
areas
affected barangays/
Most affected barangays/
no return areas
no no return
return areas areas
to cripple terrorism’s support system.
Saguiaran
Complementing this are our efforts to further Saguiaran
Saguiaran
Saguiaran
MARAWI CITY MARAWI
MARAWI CITY
CITY
MARAWI CITY
Saguiaran MARAWI CITY
strengthen our forces. This year, we prioritized
increasing the basic pay of our military and
uniformed personnel, as a recognition of
their valuable contributions in protecting and
securing the nation. In the years to come, we
will continue to work doubly hard to modernize Lake Lanao

and improve the capability of our armed forces

Map of the affected areas in Marawi City. The red colored areas are the
towards a more credible defense force against most affected barangays. Lake
Lake Lan
Lan
internal and external threats. Photo Credits: UNOCHA Lake Lan
Lake Lan

ADDRESSING LINGERING AND EMERGING WORKING TOGETHER FOR A PEACEFUL AND

TRANSNATIONAL THREATS. Preventing terrorism
and transnational crimes is essential in achieving a
secure nation. The transborder nature of terrorist
activities necessitates stricter border controls to
regulate the movement of lawless individuals. It is
for this reason, that we seek to see the passage of a
new Philippine Immigration Act. The new law shall
capacitate and professionalize our immigration
agency to provide world-class immigration
service, and update the outdated provisions of the
Philippine Immigration Act of 1940 to cope with
new and emerging challenges.
MOVING PEACE FORWARD. I am enjoining local
governments to play an active role in effectively
ending the decades-long armed struggle of the
CPP-NPA-NDFP, and in accepting a new political
system that will make peace in the Bangsamoro.
As the government pursues localized peace talks
to halt the communist insurgency, it is also
ensuring that local governments in Mindanao
are exercising good local governance that will
hopefully pave the way for development in these
areas.
ORDERLY SOCIETY. It is my life’s mission to protect
the next generation of Filipinos from the threats of
crime and illegal drugs. That is why we continue to
fully equip and capacitate our law enforcers, while
at the same time weeding out those unfit to serve.
I will not allow scalawags in our law enforcement
agencies to endanger the people they vow to serve
and protect. We shall endeavor to instill more
stringent discipline within their ranks and ensure
that no rogue law enforcer will remain unpunished.
However, I also recognize that our law enforcers
can only do so much. They cannot completely
solve the crime and drug problem in our country
by themselves. While efforts at reforming,
rehabilitating, and reintegrating thousands of
drug-victims are now gaining ground, we need to
do something more beyond what our government
agencies can offer. I thus call on every Filipino
to be the government’s partner in finding and
implementing lasting solutions to the scourge of
illegal drugs and crimes. Now more than ever, we
need more citizen engagement in the anti-crime
and anti-illegal drug efforts in our communities.
 28 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

Photo Credit: PCOO

ADVANCING THE NATIONAL

INTEREST IN THE GLOBAL
2
CHAPTER

COMMUNITY

We have consistently pursued an independent foreign

policy. The Philippines is a friend to all and an enemy to
none. Putting our national development goals first, we seek
peace and stability by building bridges of friendship and
understanding, guided by the three (3) pillars of our foreign
policy, namely: the preservation and enhancement of national
security; promotion and attainment of economic security;
and protection of the rights and promotion of the welfare and
interest of Filipinos overseas.

In the past year, we elevated our foreign policy to new heights.

We led in steering the rudder of the Association of Southeast

Asian Nations (ASEAN) towards more beneficial
results for the region; deepened ties with close
allies; and improved relations with the rest of the
world.
Now, we are reaping the fruits of such endeavors.
We have not only consistently preserved our
territorial integrity and sovereignty, but also
promoted a stable environment for our country
to grow, ultimately paving the way for a promising
regional security architecture for the benefit of
our peoples and neighbors.
SPEARHEADING EFFORTS IN REGIONAL
SECURITY AND DEVELOPMENT33
STEERING THE ASEAN TOWARDS GREATER
HEIGHTS. In 2017, the Philippines assumed the
Chairmanship of the ASEAN, coinciding with
the 50th anniversary of the Association. With
the theme, “Partnering for Change, Engaging
the World,” our Chairmanship focused on six (6)
Leaders of the ten ASEAN Member States gathered in Manila in April 2017 for the 30th ASEAN Summit.
Photo Credit: PCOO
33 DFA, July 19, 2018.
T H E P R E SI D E N T ’ S R E P O RT 29
TO THE PEOPLE
2016 - 2018
thematic priorities, with highlights as follows:
• Engaging the World. We highlighted the
ASEAN’s importance to both the region
and the rest of the world. I emphasized that
ASEAN is committed to work with regional
and international partners to advance mutually
beneficial arrangements, and tackle traditional
and non-traditional issues affecting the peace,
stability and prosperity of our nation and the
entire region.
• Peace and Stability in the Region. As the thrust
of my Administration revolves mainly on
improving security and ensuring law and
order in the country to pave the way for peace
and development for our people, I deemed it
necessary to advance these goals in the bigger
regional stage, to share its benefits to our
neighbors and friends. Thus, as ASEAN Chair,
we espoused the upholding of peaceful co-
existence and deepening partnership among
ASEAN member states to address traditional
 30 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N
and non-traditional threats to regional peace
and security.
On September 20, 2017, we led the ASEAN
Ministers in issuing the Manila Declaration to
Counter the Rise of Radicalization and Violent
Extremism. It reaffirms the shared commitment
of the ASEAN member states to promote
peace and stability in the region. As a part
of the comprehensive measures on counter-
terrorism, the ASEAN Member States agreed
to place a strong emphasis on deradicalization,
particularly on rehabilitation and reintegration
programs. These measures aim to significantly
reduce, if not totally eradicate, the support
that terror groups receive from sympathetic
individuals.
• Maritime Security and Cooperation. To ensure
that we protect our seas and our fishermen
who depend on them for livelihood, we also
shepherded the adoption of the Declaration for
a Decade of Coastal and Marine Environmental
Protection in the South China Sea (SCS)
(2017-2027) during the 20th ASEAN-China
Summit in November 2017. This declaration
notes the importance of protecting the SCS
as a natural resource base for economic and
social development for the present and future
generations; recognizes the benefits that
would be gained from having the SCS as a sea
of peace, stability and prosperity; affirms the
commitment of ASEAN-China in undertaking
collective action to protect the marine
ecosystem and biodiversity in the SCS; and
emphasizes the need to promote responsible
fishing practices, environmentally-friendly
fishing methods, and combatting illegal,
unreported and unregulated fishing, to ensure
sustainable fishery resources and achieve food
security, among others.
• A People-oriented and People-centered ASEAN.
With the welfare of the people foremost in
my mind, we highlighted to the ASEAN
Community the promotion of citizens’ rights,
recognizing that their well-being is key to the
region’s progress.
In November 2017, during the 31st ASEAN
Summit, we led the ASEAN Leaders in signing
the ASEAN Consensus on the Protection and
Promotion of the Rights of Migrant Workers.
After ten years of negotiations, the ASEAN
finally reached a consensus on how to better
promote and protect the rights of migrant
workers. Through this landmark document,
we ensured that ASEAN will provide our
migrant workers with better social protection,
easier access to justice and health services,
more humane and fair treatment, among other
things.
FORTIFIED MEANINGFUL ARRANGEMENTS AND
AGREEMENTS WITH BILATERAL PARTNERS.
Parallel with our efforts in the regional
arena, we continue to bolster our relations
with bilateral partners, leading to concrete
milestones in existing arrangements; and
forging more agreements with various players.
• Trilateral Cooperation Arrangement (TCA)
with Indonesia and Malaysia. Signed on July
14, 2016, the TCA is a joint mechanism by the
three (3) countries aimed at addressing the
growing security challenges in the region, such
as armed robbery at sea, kidnapping, terrorism,
and other transnational crimes. Information
exchange and sharing about threat groups and
coordinated sea and air patrols within regional
borders under the TCA helped prevent the Abu
Sayyaf Group and other lawless elements from
conducting atrocities and criminal acts in our
common maritime areas.
The Trilateral Meeting on Security among
the three (3) countries was held in Manila
on June 22, 2017. Meanwhile, the Trilateral
Maritime Patrol and Trilateral Air Patrol were
launched in Tarakan, Indonesia on June 19,

DND Secretary Delfin N. Lorenzana with his Indonesian and Malaysian
counterparts for the Trilateral Cooperation Agreement.
Photo Credit: DND
2017 and Subang, Malaysia on October 12,
2017, respectively. Since the start of 2018, there
has been no seajacking or kidnapping incidents
within Philippine waters involving foreign
nationals.
• Increased engagement with China. Our efforts
at re-energizing relations with China paved the
way for the enhancement of multi-level and
multi-sectoral cooperation with the Chinese
government. An important milestone is the
forging of various agreements during my
bilateral meetings with President Xi Jinping and
Premier Li Keqiang, in Manila and in Beijing.
Among the notable results are as follows:
`` The Protocol on Cooperation between our
PDEA and China’s Narcotics Control Bureau
of the Ministry of Public Security signed on
October 20, 2016, which has allowed China to
assist us in our war on drugs.
Among the efforts undertaken by these
two drug enforcement agencies is the
conduct of joint intelligence, investigation,
and operations against the Dragon Wu
Syndicate. This started on September 3,
2017, when intelligence information from
T H E P R E SI D E N T ’ S R E P O RT 31
TO THE PEOPLE
2016 - 2018
China’s Office of the National Narcotics
Control Commission was passed on to the
International Cooperation and Foreign
Affairs Service, which coordinated with
the Intelligence and Investigation Service
of PDEA. Since then, we conducted round-
the-clock surveillance operations targeting
Chinese nationals believed to be shabu
laboratory chemists. The investigation led
to the dismantling of three (3) clandestine
laboratories in April 2018 (see Chapter 1,
Sustaining the campaign against illegal
drugs).
`` Three (3) agreements on China’s donation of
CNY102 million worth of military equipment
signed in 2017 among the DND and the
Chinese Ministry of National Defense. All
14 items under these agreements have been
delivered as of March 2018.
• Levelled-up Cooperation with Japan. The
latter part of 2017 and the early part of 2018
saw numerous agreements on infrastructure
projects being signed with Japan. These
agreements support the Build, Build, Build
program of my Administration, which will
provide the infrastructure and logistical
support for our country’s economic
development.
Another notable outcome from our
cooperation with Japan was the transfer of
three (3) trainer aircraft to the Philippine Navy
in March 2018; and the forging of maritime
cooperation between the PCG and Navy with
the Japanese Maritime Self-Defense Force in
January 2017.
• Active engagement with the USA. Due to our
government’s continued active engagement
on counter-terrorism with the USA, the
latter provided assistance totaling US$185.3
million in 2017. The US Government, through
the United States Agency for International

In celebration of the Philippine Independence Day, BRP Davao del Sur (LD602) ferried Philippine Navy divers and other stakeholders who planted the
national flag underwater as symbol of the country’s ownership of the Philippine Rise.
Photo Credit: Philippine Navy
conflict with theirs. Thus, being a friend to all
and enemy to none, we continue to peacefully
and diplomatically engage our neighbors
through dialogue. My priority is to make sure
that our fishermen and the rest of the coastal
communities are safe, secure, and stable as they
partake of the resources in the WPS.
REAFFIRMED OUR SOVEREIGNTY IN THE
PHILIPPINE (BENHAM) RISE. I have consistently
reiterated that the Philippines holds and
maintains sovereign rights over the Philippine
Rise. On May 16, 2017, I signed Executive Order
(EO) no. 25 renaming the Benham Rise to the
Philippine Rise, reaffirming our sovereignty
over this territory. I have also directed concerned
agencies to reiterate the Philippines’ sovereign
rights over the Philippine Rise, and instructed
the Philippine Air Force (PAF), Philippine Navy,
and PCG to conduct regular patrols up to the
farthest areas of the Philippine Rise.
In February of this year, I ordered a stop to all
marine exploration activities done by foreign
nationals in the Philippine Rise. On May
15, 2018, we sent off an all-Filipino maritime
research expedition team, composed of scientists
and divers, aboard the  BRP Davao del Sur  in
36 DTI, July 20, 2018.
T H E P R E SI D E N T ’ S R E P O RT 33
TO THE PEOPLE
2016 - 2018
Casiguran, Aurora to conduct research in the
Philippine Rise, and plant the Philippine flag on
the shallowest part of the area (see Chapter 7 for
further discussion on the Philippine Rise).
MAXIMIZING TRADE AND INVESTMENT
RELATIONS36
Trade is one of the backbones and drivers of
economic growth. In my foreign trips, I have
always called on our neighbors and foreign
partners to bring their investments into our
country, with the assurance that their investments
will be protected.
We are exploring and maximizing opportunities
not only with traditional partner economies but
also with non-traditional and high potential
trading partners. Our free trade agreements
(FTAs) with other countries allow consumers and
manufacturers to enjoy a variety of goods and
services at a cheaper price and benefit Filipino
exporters due to zero tariffs on most products.
The increased level of investments is a testament
that the missions, trade fairs, and market
diversification programs we are undertaking
 34 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

have gained traction in promoting our country’s
competitive products and services to the global
market. It is also a reflection of the confidence of
investors in our economy.
We will continue to focus on the integration
of our micro, small, and medium enterprises
(MSMEs) into the global value chain to enable
the marginalized, the women, and the youth to
participate in business and commercial activities.
INCREASED TRADE.37 Total trade in goods
improved in 2017 and in the first five months
of 2018. Our top trading partners in 2017 were
China, Japan, and the USA, with electronic
products as our top export and import. The
following are among our efforts to intensify trade
and investment relations with our traditional
and non-traditional partners:
• Ratification of the Philippines-European
Free Trade Association (EFTA) Free Trade
Agreement (PH-EFTA FTA). On March 5,
2018, the Senate ratified the PH-EFTA FTA,
our second bilateral FTA after the Philippines-
Japan Economic Partnership Agreement
(PJEPA). This agreement will give us greater
access to the European market and allow duty-
free access between the Philippines and EFTA
member states, i.e., Iceland, Lichtenstein,
Norway, and Switzerland, to trade products
and services.
We will gain tariff preferences on agricultural
products such as desiccated coconut, prepared
or preserved pineapples, and raw cane sugar;
and other products with high export interest
from EFTA member states and neighboring
European countries.
In return, we will grant EFTA member
states duty-free market access on most
industrial, fishery, and agricultural products.
The agreement will also welcome foreign
investments on renewable energy, computer
and related services (IT-BPM), construction,
environmental services, maritime transport,
and finance.
• Expansion of the US General System of
Preferences (GSP) to travel goods. We pushed for
the expansion of the US GSP to cover certain

FIGURE 9. TOTAL TRADE 2016 AND 2017

(EXPORT AND IMPORT) MAJOR TRADING PARTNERS IN 2017
( I N B ILLIO N US $ ) ( IN BILLIO N US $ )
Top 1 China
14.48 15.22
US$25.48 billion 164.81 MAY MAY
141.51
12.73
APRIL 14.10
Top 2 Japan 68.71 APRIL
57.41
US$21.76 billion EXPORT 16.50% EXPORT 14.11
MARCH
4.13% 13.73
MARCH
11.98 12.63
Top 3 USA 84.11 96.09 FEBRUARY FEBRUARY
US$17.44 billion IMPORT IMPORT 13.52 13.91
JANUARY JANUARY
2016 2017 2017 2018
Source: PSA JAN-MAY JAN-MAY
37 PSA, Foreign Trade Statistics 2016, July 10, 2017, and Final Foreign Trade Statistics: January to December 2017, April 11, 2018.

FIGURE 10. EXPORT OF TRAVEL GOODS TO THE US, 2016 AND 2017
(VALUE IN MILLION US$)
13.77
11.45
2 01 6
L E AT HE R T R UN KS, S U I TCASE S AND
E XE CU T I VE CASE S
Source: DTI
travel goods, which the United States Trade
Representative (USTR) approved in July 2017.
These travel goods include apparels, bags,
wallets, and backpacks. Previously, these goods
were subjected to six (6) to 20 percent tariff.
Now, they can enter the US market duty-free.
A marked improvement was seen in this
sector’s export performance, with our exports
of leather trunks, suitcases, executive cases;
and handbags of other materials increasing
significantly in 2017 (see Figure 10).
The US GSP provides duty-free treatment to
5,059 products, or 48 percent of the 10,600
total US tariff lines. Of these, 3,569 are
available to all beneficiary developing nations,
while least-developed countries can ship an
additional 1,490 products without duty. The
US GSP program, which expired in December
2017, has been extended until December 31,
2020, with the signing of the US Consolidated
Appropriations Act 2018 on March 23, 2018. In
2017, GSP exports accounted for 17.6 percent
of our exports to the US, valued at US$1.49
billion. Leading GSP exports include tires,
sugar, electronics, and fruit and vegetable
juices.
T H E P R E SI D E N T ’ S R E P O RT 35
TO THE PEOPLE
2016 - 2018
94.94
68.19
2 01 7
H ANDBAGS OF OT HE R M AT E RIALS
• Increase in exports to the European Union (EU)
through the Generalized Scheme of Preferences
Plus (GSP+). Since the successful application of
the Philippines to the GSP+ in 2014, we have
enjoyed greater market access to the EU that led
to a significant increase in exports. In 2017, the
EU became our second largest export market
after Japan. Our exports to the EU grew by
32.8 percent and amounted to around US$9.26
billion in 2017. Of this amount, exports under
the GSP+ constitute about US$2.2 billion or
around a quarter of our total exports to the EU.
Our GSP+ utilization has been increasing from
68 percent in 2015, to 70.87 percent in 2016,
and 73.3 percent in 2017. This indicates that
more and more stakeholders are availing and
benefitting from the scheme.
The increase in exports under the GSP+
continues to benefit the countryside, including
Davao, Cebu, Laguna, and Batangas, where
most of the exporters, many of whom are
MSMEs, are based.
• Revival of mechanisms with non-traditional
markets. We promoted the revival of various
mechanisms to strengthen our trade relations
with non-traditional markets (see Table 14).
36 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

TABLE 14. MECHANISMS WITH NON-TRADITIONAL MARKETS

COUNTRY DETAILS

• After a five-year hiatus, the Philippines and China convened the 28th Philippines-
China Joint Commission on Economic and Trade Cooperation, which resulted in
the signing of the Philippines-China Six-Year Development Program for Economic
and Trade Development (2017-2022).
China • The program covers measures to increase bilateral trade, improve market
access for agricultural products, and empower MSMEs, among others.

• During the 2nd Philippines-Vietnam Joint Trade Commission meeting, held on

April 24, 2017, the members agreed on initiatives to improve trade and
investment, and schemes to capitalize on the complementarities of our
countries in developing certain industries and/or sectors.
Vietnam • Vietnam committed to ensure exports of high quality rice to meet Philippine
demands.

• The inaugural meeting of the Philippines-Russia Joint Commission on Trade and

Economic Cooperation, which was held last April 27-28, 2017 in Manila, provided
the momentum for enhanced bilateral engagement.
• As a result of the meeting, agreements in areas such as trade and investment
Russia promotion, industry cooperation, and agriculture, were signed in Russia in May
2017.

• The first meeting of the Philippine-Turkey Joint Committee on Economic and

Technical Cooperation was held in Ankara on February 5-6, 2018.
• The Philippines and Turkey signed agreements on agricultural cooperation and
Turkey investment promotion to enhance bilateral trade and investments.

• The Philippines-Hungary Agreement on Economic Cooperation established a

Joint Economic Commission (JEC) to serve as a venue for the private sector of
both countries to be connected, and develop a beneficial partnership through
business to business meeting.
Hungary • Cooperation initiatives could be pursued in automotive, aerospace, agriculture,
and tourism.

• The Philippines-Czech Republic Agreement on Economic Cooperation established

the JEC to serve as a platform for government and the private sector to raise
issues on trade and investments, and seek technical and/or financial assistance.
Czech Republic • Possible areas of cooperation include aerospace, electronics, and transportation.

Source: DTI
 T H E P R E SI D E N T ’ S R E P O RT 37
TO THE PEOPLE
2016 - 2018

The sustained FDI

INCREASED INVESTMENT INFLOWS. The following inflows is a testament
are among our achievements that prove that to the strong
investor confidence in the Philippines remains investor confidence
strong: on our country.

• Recorded the highest Board of Investments

(BOI)-approved investments. The BOI recorded
in 2017, its highest investment approvals in
50 years. The investment projects that came
in, totaling 435 and amounting to PhP616.70
billion, will create economic activities,
generate employment, and promote inclusive
development outside Metro Manila.
The trend continued this year as approved
investments in the first semester of 2018, totaling
PhP238.90 billion, was 27 percent higher
compared to the PhP188.02 billion approved
investments in the same period in 2017.
• Increased Foreign Direct Investment (FDI) net
inflows.38 In 2017, FDI net inflows exceeded the
2016 inflows and the US$8 billion projection
for 2017 (see Figure 12). The growth of FDI
inflows is a testament to the strong investor
confidence in our country, which is founded on
the Philippine economy’s solid macroeconomic
fundamentals and growth prospects.
Our top sources of FDI in 2017 were
Singapore, Japan, the Netherlands, the USA,
and Luxembourg. Investments mainly went
into electricity, gas, steam and air-conditioning
supply; manufacturing; and real estate.
For the first quarter of 2018, FDI yielded net
inflows of US$2.18 billion, a 43.5 percent
increase from the US$1.52 billion recorded in
the same period last year. The large inflows of
FDIs will help our country achieve and sustain
our economic growth trajectory.

FIGURE 11. BOI-APPROVED FIGURE 12. FDI NET

INVESTMENTS, 2016 AND 2017 INFLOWS, 2016 AND 2017
(VALUE IN BILLION PHP) (VALUE IN BILLION US$)
616.7
10.05
8.28
442

39.53% 21.4%

2 01 6 2 01 7 2 01 6 2 01 7

Source: DTI Source: BSP

38 DOF, July 19, 2018.

 38 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

As a reflection of investor confidence, the US • Instituted reforms to improve ease of doing

News and World Report named the Philippines
as the Best Country to Invest In in its 2018
Best Countries39 report. The Philippines was
ranked ahead of Indonesia, Poland, Malaysia,
and Singapore.
Top ratings agencies of the world like Moody’s40
and Standard & Poor’s41 (S&P) accorded us
an “investment grade” rating since 2014,
which means that we can meet our financial
commitments.
Fitch upgraded our Long-Term Foreign-
Currency Issuer Default Rating from BBB-,
the minimum investment grade, to BBB in
December 2017. The upgrade to stable outlook,
which means there are no pressing factors
that could trigger an adjustment within the
near term, is due to our strong and consistent
macroeconomic performance and fiscal
policies. Fitch affirmed this rating in July 2018.
Meanwhile, S&P upgraded our credit rating
outlook from “stable” to “positive” in April 2018
due to improvements in our policy-making,
which could support more sustainable public
finances and balanced growth over the next 24
months.
The credit rating upgrade will allow our
country to access cheaper credit, lowering our
borrowing costs and allowing us to spend more
on social services such as better education and
health care. This also means affordable loans for
major purchases. With the upgrade, our country
is expected to have a more robust investment
environment and remain as one of the fastest
growing economies in the Asia Pacific.
business. We have also accomplished a set of
reforms to improve the ase of doing business
in the country, which include the following:
`` Passage of the Ease of Doing Business and
Efficient Government Service Delivery Law
or Republic Act (RA) no. 11032.42 I thank
Congress for its swift passage, which is a
significant step in our fight against corruption
and our drive to improve service delivery.
The law mandates all government offices
and agencies, including LGUs, Government
Owned or Controlled Corporations
(GOCCs), and other government
instrumentalities that provide business and
non-business related transactions, to process
transactions within three (3) working days for
simple transactions, seven (7) working days
for complex transactions, and 20 working
days for highly-technical applications.
The law also created an Anti-Red Tape
Authority, which shall be directly supervised
by the Office of the President, to implement
and oversee a national policy on reducing red
tape and promoting ease of doing business.
It shall also implement reforms to improve
our worldwide ranking, among others.
A long and complicated business registration
process can result in potential investors’
reluctance to invest in or start businesses
in the Philippines. The law supports my
0+10-point Socio-Economic Agenda,
particularly in improving competitiveness
and ease of doing business in the Philippines
by addressing bottlenecks in the national

39 Best Countries is a rankings, news, and analysis project created to capture how countries are perceived on a global scale. The rankings evaluate
80 countries across 24 categories drawn from a survey of more than 21,000 global citizens, measuring 75 dimensions that have the potential to
drive trade, travel, and investment and directly affect national economies.
40 Obligations are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.
41 Obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more
likely to weaken the obligor’s capacity to meet its financial commitments.
42 An Act Promoting Ease of Doing Business and Efficient Delivery of Government Services, amending for the Purpose RA no. 9485, otherwise known
as the Anti-Red Tape Act of 2007 and for Other Purposes.
 T H E P R E SI D E N T ’ S R E P O RT 39
TO THE PEOPLE
2016 - 2018

The President signs the Ease of Doing Business and Efficient Government Service Delivery Act or RA no. 11032 on May 28, 2018.
Photo Credit: PCOO

and local business permitting process.The TABLE 15. REPEAL OF

law will make doing business easier, thus BURDENSOME AND IRRELEVANT
promote investor confidence. RULES AND REGULATIONS
TOTAL
`` Holding of the Repeal Day. This aims to 3RD REPEAL DAY 1ST, 2ND AND 3RD
REPEAL DAY
revoke or repeal rules and regulations
deemed burdensome and irrelevant. Since Reviewed 976 5,850
it started in March 2016, we have organized
three (3) repeal days. The 3rd Repeal Day, Repealed 46 1,921
held on December 12, 2017, resulted in the
revocation, amendment, or consolidation of Consolidated 11 67
976 issuances bringing the total number of Amended 19 57
reviewed issuances to 5,850.
Delisted 708 3,346
To raise the Philippines’ level of
competitiveness, and foster higher economic Retained 192 459
growth in the ASEAN, I issued Memorandum Source: DTI
Order (MO) no. 16 on November 21, 2017,
directing the NEDA Board and its member
 40 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

agencies to exert utmost efforts to lift or ease
restrictions on certain investment areas or
activities with limited foreign partnership
including private recruitment for local and
overseas employment, practice of particular
professions, and construction and repair of
locally-funded public works.
In response to MO no. 16, the 11th Revised
Foreign Investment Negative List is being
reviewed with the goal of easing restrictions on
certain foreign investments43 to attract more
investments, promote more competition, and
increase trade in the country.44
PROMOTING AND PROTECTING THE
INTEREST OF FILIPINO MIGRANT
WORKERS AND OTHER FILIPINOS
OVERSEAS
As we strive to create decent jobs with decent pay
here at home, we are also prioritizing the protection
and promotion of the welfare and interest of
overseas Filipino workers (OFW) at every stage
of the migration cycle, from recruitment, to
deployment, return, and reintegration.
STREAMLINING FRONTLINE SERVICES TO MAKE
THEM RESPONSIVE TO THE OFWS’ NEEDS 45

Other government initiatives that aim to We established 18 One-Stop Service Centers

encourage investments include streamlining for OFWs (OSSCOs), integrating in one
processes, providing support to targeted centralized location all frontline services of the
sectors, and intensifying the fight against BIR, DFA, Philippine Overseas Employment
illegal drugs, corruption, and criminality. Administration (POEA), Overseas Workers
Welfare Administration (OWWA), TESDA,
Professional Regulation Commission (PRC),
MARINA, Home Development Mutual Fund
(Pag-IBIG), PhilHealth, Social Security System
(SSS), Philippine Statistics Authority (PSA),
As we strive to create Bureau of Immigration (BI), National Bureau
decent jobs with decent of Investigation (NBI), Commission on Higher
pay here at home, we Education (CHED), Tourism Infrastructure and
are also prioritizing the Enterprise Zone Authority (TIEZA), and the
protection and promotion PNP.
of the welfare and interest
of overseas Filipino The OSSCO was pioneered in the POEA Main
workers (OFW) at every Office in Mandaluyong City and can now be
stage of the migration found in the regions. It aims to spare OFWs from
cycle, from recruitment, shuttling from one office to another and shorten
to deployment, return, and the processing time for their documents.
reintegration.
From July 2016 to June 2018, we served 2.66
million clients through our OSSCOs nationwide.

43 This includes professions, which foreigners are allowed to practice subject to reciprocity, teaching at higher education level not requiring
the passing of appropriate government board or bar examination, and short-term higher level skills development that do not form part of the
hierarchical structure of the formal educational system.
44 NEDA, July 11, 2018.
45 DOLE, July 16, 2018.

The President meeting with OFWs.
Photo Credit: PCOO
In February 2018, we established, through
the DOLE, a 24/7 OFW Command Center to
serve as the central referral action hub for all
OFW concerns needing immediate action and
assistance. The Center is open to all walk-in,
email, text, and telephone requests for assistance,
and is also accessible through social media and
online messaging platforms. Since its creation,
the Center has addressed 738 of the 6,322
requests for assistance it received.46
ESTABLISHED THE OVERSEAS FILIPINO BANK
(OFBANK). 47 In January 2018, we launched
the OFBank, which is dedicated to providing
financial products and services tailored to the
requirements of all Filipinos abroad.
46 Resolution of the remaining 5,584 cases is ongoing.
47 LANDBANK, July 19, 2018.
48 Through the payment services, OFs may pay from abroad their SSS, OWWA, and PhilHealth dues; insurance premiums; credit cards, telephone and
water bills; housing and business loan payments; and tuition fees of their beneficiaries directly to the payees in the Philippines.
T H E P R E SI D E N T ’ S R E P O RT 41
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2016 - 2018
A wholly-owned Savings Bank subsidiary of the
Land Bank of the Philippines (LANDBANK), the
OFBank is seen to strengthen the government’s
presence in the remittance market and eventually
influence the market to lower bank remittance
fees. It will also offer a wide range of other
banking products that match the needs of
OFs, from deposits, loans and investments, to
payment services,48 making it superior to other
banks, which only offer remittance services. We
have also launched the OFBank mobile banking
application to make accessing banking services
more convenient for OFs and their families.
Since its launch, 2,351 accounts amounting to PhP15
million have been opened by OFs and their families.
 42 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

By the third quarter of 2018, we plan to launch
the OFBank Overseas Financial Advisory Desk
at the Philippine Embassy in Abu Dhabi and
the Philippine Consular Offices in Dubai and
Bahrain.
PROTECTING THE FILIPINO MIGRANT WORKERS.49
Our duty of protecting the Filipino workers does
not end when they reach foreign soil. With greater
resolve, we doubled our efforts in ensuring their
well-being, recognizing the risks of living in an
unfamiliar land.
We continue to implement strong measures
against illegal recruitment. As a protective
measure, we remain aggressive in ensuring that
all deployed OFWs are properly documented. To
this end, the POEA has processed 6.526 million
contracts covering both land-based and sea-based
workers from July 2016 to June 2018.
To further ensure the promotion and protection
of the rights and welfare of OFWs, we undertook
the following:

TABLE 16. BILATERAL LABOR AGREEMENTS

COUNTRY AGREEMENT OBJECTIVE

Memorandum of Agreement
Promote cooperation in protecting the rights
(MOA) concerning Cooperation
and welfare of both countries’ migrant workers,
in the Field of Labor and
and technical sharing in the area of skills
Employment
Cambodia development and labor productivity
(Date signed: December 14, 2016)

Agreement on Labor
Cooperation for General
Workers Recruitment and
Employment
KSA (Date signed: April 11, 2017)
Enhance cooperation on the recruitment and
employment of general workers and provide
more protection for Filipino workers

Memorandum of
Understanding (MOU) on Labor
Cooperation and Protocol on
Domestic Workers
UAE (Date signed: September 12, 2017)
Strengthen friendly relations through
cooperative undertakings that promote mutual
benefit and provide adequate protection for
OFWs

Ensure the rights of Filipino domestic workers

Agreement on Employment of in accordance with the provisions of the
Domestic Workers Kuwaiti laws relating to domestic workers
(Date signed: May 11, 2018) and in compliance with the Philippine laws on
Kuwait recruitment and deployment of Filipino workers

Source: DOLE

49 DOLE, op.cit.
 T H E P R E SI D E N T ’ S R E P O RT 43
TO THE PEOPLE
2016 - 2018

• Forged Bilateral Labor Agreements (BLA) with TABLE 17. FILIPINOS REPATRIATED
Other Countries. We signed BLAs with the
Kingdom of Saudi Arabia (KSA), Kuwait, and NUMBER OF
United Arab Emirates (UAE), which are three COUNTRY YEAR FILIPINOS
REPATRIATED
(3) of the top 10 destinations of OFWs (1st, 2nd,
and 6th respectively). KSA 2017 10,011

We also forged a BLA with Cambodia to Malaysia 2017 1,300

strengthen the protection of Filipinos working
there. Kuwait 2018 5,248

Source: DOLE
We consider the signing of the agreement with
Kuwait as a significant step towards affording
protection to Filipino household service
workers abroad as it will serve as a model
agreement that we will pursue with other
countries hosting Filipino migrant workers. We
thank the State of Kuwait for working with us
in forging this one-of-a kind agreement.

The agreement with Kuwait provides for the

following:

`` Ensuring that the employer shall provide the

worker with food, housing, clothing, and Taken during the meeting with Ms. Alagasi in Davao City on
April 14, 2018, a day after she arrived from the KSA.
health insurance; Photo Credit: PCOO

`` Ensuring that the employer is not allowed to

keep in his/her possession any of the worker’s
personal identity documents, such as the
passport; and
`` Allowing the worker to have and use cellular
phones and other means of communication
with their families and government,
prohibiting the employer from confiscating
them.
• Repatriated Filipino Migrant Workers in
Distress. We repatriated Filipinos who signified
interest to avail of the amnesty programs of
the KSA, Malaysia, and Kuwait.
We also repatriated 5,123 Filipinos under our
Operation Bring Them Home Program in 2016.
After almost four (4) years, we were able to bring
home in April 2018 Ms. Pahima Palacasi Alagasi,
a household service worker in the KSA, who
suffered severe burns caused by her employer
in 2014. She filed a case against her employer
but lost. To make matters worse, her employer
filed retaliatory cases, which held back her
repatriation.
I brought up her case during my meeting with
Saudi Prince and Minister of Interior Abdulaziz
bin Saud bin Naif in March 2018 at the Malacañan
Palace.
Weeks after our meeting, we were informed that
Ms. Alagasi’s case has been resolved through the
intercession of the Saudi Prince.
 44 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N
The President meeting with OFWs.
Photo Credit: PCOO
We dispatched an inter-agency team to assist
those who lost their jobs and got stranded in the
KSA after several big companies experienced
financial difficulties due to the slumping oil
prices. We facilitated with their employers
the processing of the unpaid wages, end-of-
service benefits, and other claims. Moreover,
we extended PhP547.769 million worth of
assistance50 to the OFWs and their families.
• Ensured the Productive Reintegration of OFWs
into the Local Economy. In line with our
commitment to facilitate the productive return
of OFWs to their families and communities
upon their completion of overseas employment,
we made available to them a package of
interventions and mechanisms.
50 Includes provision of food and hygiene kits, on-site counselling and stress debriefing, financial assistance, medical and psychosocial assistance,
legal and counselling assistance, employment and livelihood assistance, educational assistance
They may access these to help them mitigate the
social cost of migration or cushion the impact
of forced repatriation due to unexpected
events.
Services include options for productive
investment, knowledge transfer, credit-facility,
training, and livelihood and entrepreneurship
development. It also includes other services such
as psycho-social counselling, stress debriefing,
values formation and financial literacy.
From July 2016 to June 2018, 51,691 OFW-
returnees and their families were provided with
training assistance, while 53,176 OFW-returnees
were provided with livelihood assistance.
 T H E P R E SI D E N T ’ S R E P O RT 45
TO THE PEOPLE
2016 - 2018

WAY FORWARD: NATIONAL

DEVELOPMENT AS THE CORNER
STONE OF PHILIPPINE FOREIGN
POLICY

FORTIFYING REGIONAL SECURITY. By being

a friend to all and an enemy to none, we shall We shall fortify
continue openly engaging both traditional and our efforts in
new allies in various bilateral and multilateral encouraging and
settings. We shall focus on our bigger goal involving our Asian
of realizing a more stable regional security neighbors and
environment while involving our Asian friends to more
neighbors and friends to more actively work actively work
together towards long-term security and stability together towards
for the entire Asia-Pacific region. We endeavor to long-term security
replicate the trilateral cooperation agreement we and stability for the
have with our ASEAN brothers and champion entire Asia-Pacific
it with other stakeholders in the region, as a region.
means to jumpstart heightened regional efforts
at counter-terrorism and anti-piracy, and the
effective deterrence of other non-traditional
threats.

SAFEGUARDING OUR TERRITORIAL INTEGRITY PROTECTING FILIPINOS OVERSEAS. More

AT ALL TIMES. Our national sovereignty is non- aggressive efforts will be undertaken to ensure
negotiable. In the midst of competing claims and the safety and well-being of the more than ten
territorial disputes, we are commited to protecting million Filipinos living and working abroad. It is
and defending every inch of out territory. We will high time for them to feel that the government
continue patrolling our territorial waters and our looks after them as they toil in foreign lands
exclusive economic zones. We shall fast-track and seas to support their families at home and
our military’s modernization and capability contribute to Philippine development. More
enhancement programs to fully equip our forces programs are also underway for returning
to effectively safeguard our territories. migrant workers to assist them and their families
reintegrate into the domestic economy and their
ENHANCING TRADE AND INVESTMENT respective local communities.
RELATIONS. We shall increase trade and entice
more investments by enhancing Philippine
competitiveness in terms of quality exports and
as an investment hub. Much needed boost will
be given to industries where our country retains
comparative advantage, and more sound policies
will be implemented to make the Philippines a
better place to invest in.
 46 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

Photo Credit: DENR

TOWARDS SAFE,
ADAPTIVE, AND RESILIENT
3
CHAPTER

COMMUNITIES

According to the World Risk Report 2017, the vulnerabilities

of countries worldwide to extreme natural events have
declined, with people better prepared than they were five
(5) years ago. The Philippines, however, remains the third
most disaster-vulnerable country in the world, same as its
ranking in 2016 and next to Vanuatu (1st) and Tonga (2nd).
Described as having limited protective measures during
natural disasters and insufficient capacities to boost disaster
preparedness, the Philippines is included in the global
 T H E P R E SI D E N T ’ S R E P O RT 47
TO THE PEOPLE
2016 - 2018

hotspots for disaster risk with very high danger-
exposure levels to natural disasters, which are
aggravated by global warming and climate change.51
From the second half of 2017 to early 2018, the
Philippines faced a number of climate-related
events and calamities. Twenty-one typhoons52
entered the Philippine Area of Responsibility
(PAR) during the period, which affected around
3.30 million people; and left 242 persons dead,
224 missing, and 105 injured. The corresponding
losses in agriculture and damages to
infrastructure were PhP4.95 billion and PhP2.07
billion, respectively. In January 2018, the Mayon
Volcano erupted, affecting 23,605 families in 61
barangays in Albay and causing PhP166 million
worth of losses in agriculture.
Moreover, in April 2018, the government declared
a state of calamity in Boracay Island, regarded as
having one of the most beautiful beaches in the
world, due to heavy pollution brought about by
unabated and uncontrolled development.53
I am fully cognizant that the country is vulnerable
to disasters and the effects of climate change pose
real threats to life, property, and our developmental
gains. This and the painful lessons from past
disasters such as super typhoon Yolanda, have
been the most compelling reasons why I called
on both houses of Congress during my SONA in
2017 to expeditiously craft a law establishing a new
authority or department empowered to deliver an
enhanced and quick disaster response.
On July 9, 2018, we in the Cabinet approved for
immediate endorsement to Congress an inter-
agency crafted high priority legislative measure,
which seeks to create a truly empowered
department mandated to ensure safe, adaptive,
and resilient communities. Its framework
is anchored on three pillars (see Figure 13).
To be empowered to respond to 21st century
conditions, the department shall have unity of
command, full-time focus on natural hazards
and climate change, adherence to science- and
ICT-based approach, and the wherewithal in
terms of authority and resources to prepare for
and address the impacts of natural hazards and
climate change, including disaster recovery
and rehabilitation. I urge Congress to pass this
measure with utmost urgency.

F IGUR E 1 3. FRAMEWORK FOR DISASTER RESILIENCE

DISASTER RESILIENCE

Disaster Preparedness Recovery and Building

Disaster Risk Reduction
and Response Forward Better

Source: PMS

51 World Risk Index Report Analysis and Prospects 2017; and DENR (Chair of the CCAM-DRR Cabinet Cluster), July 19, 2018.
52 (1) Emong, (2) Fabian, (3) Gorio, (4) Huaning, (5) Isang, (6) Jolina, (7) Kiko, (8) Lannie, (9) Maring, (10) Nando, (11) Odette, (12) Paolo, (13) Quedan, (14) Ramil,
(15) Salome, (16) Tino, (17) Urduja, (18) Vinta, (19) Agaton, (20) Basyang, and (21) Domeng.
53 DENR, July 19, 2018.
 48 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

F IGUR E 1 4. KEY FEATURES OF THE PROPOSED DEPARTMENT

UNITY OF COMMAND SCIENCE AND ICT-BASED APPROACH

FULL-TIME FOCUS ON NATURAL RATIONALIZED FUND USE

HAZARDS AND CLIMATE CHANGE
DISASTER
RESILIENCE
HIGHLY-SKILLED AND PROFESSIONAL
FAST & RESPONSIVE PROCUREMENT PERSONNEL

INSTITUTIONAL PARTNERSHIPS WITH

TAKE-OVER CAPACITY LGUS, NGOS, AND ACADEMIA

Source: PMS

DISASTER RISK REDUCTION

SUSTAINING THE IMPLEMENTATION OF THE

NATIONAL GREENING PROGRAM (NGP).54 We are
sustaining the implementation of the NGP. From
2017 to 2022, we are targeting to rehabilitate
1.2 million hectares out of the remaining 7.42
million hectares of unproductive, denuded, and
degraded forest lands. From July 2017 to June
2018, we have covered 195,937 hectares.55 The
NGP also added 5,208 hectares of mangrove and
beach forests, which serve as natural protective
barriers to storm surges and tsunamis. Of the
total additional mangrove and beach forests,
3,694 hectares are in Super Typhoon Yolanda-
affected communities.

To complement the NGP, we also intensified anti-

illegal logging campaigns wherein 1.90 million Mangrove planting in Boracay Island
board feet of forest products were confiscated. Photo Credit: DENR

54 DENR, op.cit.
55 Since the start of program implementation in 2011, NGP has covered a total of 1.87 million hectares.
 T H E P R E SI D E N T ’ S R E P O RT 49
TO THE PEOPLE
2016 - 2018

PURSUING RESPONSIBLE MINING.56 In

the Mines, Inc. in Palawan, and (iii) Bagacay
utilization of the country’s mineral resources, Mines in Hinabangan, Samar. Rehabilitation
the Administration prioritizes environmental efforts include the stabilization of landslide
protection and the equitable distribution of its areas and revegetation or reforestation through
benefits to all Filipinos. technological and engineering interventions to
further prevent deterioration of the sites.
Consistent with this, the DENR issued AO no.
2017-10, which banned the open pit method of I warn the mining industry and its patrons not
mining copper, gold, silver, and complex ores in to destroy the environment nor compromise the
the country, to prevent further environmental country’s resources. I expect you to repair what
degradation and the disasters arising from the use you have mismanaged and perform your part in
of the method. In addition to the ban, we have ensuring the nation’s sustainable development.
issued 145 Cease and Desist Orders and filed 83
cases with the Provincial or City Prosecutor’s Office I also exhort all concerned government agencies
against illegal mining operations nationwide. and LGUs to uphold the concept of inter-
generational responsibility in the exploration and
Through the DENR, we created the National utilization of the country’s mineral wealth, and
Task Force on Mining Challenge (NTFMC)57 in the protection and preservation of biodiversity,
January 2018 to ensure strict implementation anchored on the right to a balanced and healthy
of existing mining policies and regulations, and ecology.
other related environmental laws. In February
2018, we launched the NTFMC in Baguio CLEARING OF LAGUNA DE BAY.58 Consistent with
City, noting that the Cordillera Administrative my 2016 SONA directive to transform Laguna
Region hosts numerous mining operations. The de Bay into a vibrant economic zone, the Laguna
Task Force cracked down on illegal small-scale
mining activities within the vicinities of the
Philippine Military Academy; Barangay Kias in
Baguio City; and Camp 4 in Benguet. This led
to the closure of several adits or entrance to
underground mines and confiscation of mineral
products, chemicals, and several equipment
used by small-scale miners. To ensure that these
mining operations will not resurface, the Task
Force destroyed the entry points of five illegal
small-scale mines, which have been operating in
the past 10-12 years.

To rehabilitate areas that have been completely

mined, we implemented the Mine Environmental
Management Plans for (i) Black Mountain,
Inc. in Tuba, Benguet, (ii) Palawan Quicksilver
Laguna De Bay clearing operation
Photo Credit: DENR
56 DENR, op.cit.
57 DENR Special Order no. 2018-53.
58 DENR, op.cit.
 50 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N
Lake Development Authority (LLDA) issued
Board Resolution (BR) no. 518, s. 2017, which
declared a one-year moratorium on the operation
of all fish pens, fish cages, and other aquaculture
structures within Laguna de Bay starting February
1, 2017. Under LLDA BR no. 518, the LLDA
shall hold the issuance of permits and clearances
for any aquaculture activities and demolish the
aquaculture structures within Laguna de Bay
by March 31, 2017, otherwise the same shall be
done by the government. LLDA BR no. 518 was
later modified, allowing fishpen operators to
voluntarily reduce their area of operation from the
allowed 50 hectares to 25 hectares.
From July 2017 to March 2018, we demolished 90
illegal aquaculture structures covering an aggregate
area of 2,305.78 hectares. For the rest of 2018,
668.05 hectares of fish pen and cage structures
shall be dismantled to conform with the carrying
capacity of Laguna Lake, which is 9,200 hectares
or 10 percent of the lake’s total surface area. To
ensure that local fisherfolks are prioritized in the
allocation of areas for fish pen or cage structures,
LLDA BR no. 540, s. 201859 was issued to allocate
60 percent of the 9,200 hectare-carrying capacity
of the lake to local fisherfolks, and 40 percent to
private corporations and individuals.
Alongside ensuring the health and equitable
distribution of the lake’s resources, we also planted
in 2017, 103,574 planting materials of various
species of bamboo, fruit-bearing, and forest trees,
covering an aggregate area of 92.72 hectares in
critical areas of the watershed near the lake. We
also enforced Cease and Desist Orders to eight (8)
companies with water pollution cases and operating
without discharge permits and issued 17 Cease and
Desist Orders for illegal reclamation of shorelands.
59 Revised Fishery Zoning and Management Plan
60 DENR, op.cit.
61 Waste diversion refers to activities which reduce or eliminate the amount of solid waste from waste disposal facilities.
62 DPWH, July 18, 2018.
INTENSIFYING SOLID WASTE MANAGEMENT
EFFORTS.60 Pursuant to the Ecological Solid
Waste Management Act of 2000, we intensified
our efforts in addressing irresponsible solid waste
disposal. From July 2017 to April 2018, we closed
51 illegal dumpsites, and operationalized 14 new
sanitary landfills and 31 Materials Recovery
Facilities nationwide to ensure proper solid waste
management. In 2017, we also reached 52 percent
waste diversion rate61 in NCR, and 62 percent
outside NCR through the conduct of reuse,
recycling, and composting, and other resource
recovery activities.
PURSUING THE CONSTRUCTION OF
INFRASTRUCTURE FOR DISASTER RISK REDUCTION
AND CLIMATE CHANGE ADAPTATION.62 We are
pursuing the construction and strengthening
of public infrastructure in a resilient manner to
help mitigate the impact of disasters and climate
change.
We have completed the retrofitting and
strengthening of 624 bridges (29,260 meters [m]),
and replaced 204 bridges (8,305 m) nationwide
from July 2016 to June 2018. Among our notable
accomplishments are the replacement of the Lisap
Bridge along Calapan South Road Bongabong,
Oriental Mindoro, which connects Barangay
Lisap and Barangay Hagan, and the Replacement
of the Lucban Bridge along the Manila North
Road in Abulug, Cagayan in November 2016.
This traverses the Lucban River and connects the
Daang Maharlika in the east and Manila North
Road in the west;
In addition, we completed the Mandaluyong
Main Drainage in August 2016. This protects 10
barangays and four (4) major roads from flooding.

The 365-m Lisap Bridge provided a more structurally stable bridge, benefitting 7,517 motorists every day.
Photo Credit: DPWH
Moving forward, we are pursuing the completion
of the following projects:
• The Metro Manila Priority Bridges Seismic
Improvement Project, which involves the
retrofitting and reinforcement of the Guadalupe
Bridge and Lambingan Bridge, is scheduled
to start in 2019 and targeted for completion
by 2021. This will ensure the safety of about
365,000 motorists who use the Guadalupe
Bridge and about 30,257 motorists who pass by
the Lambingan Bridge every day;
• The updated Flood Control and Drainage
Master Plans, and Feasibility Studies of the 18
Major River Basins and other critical principal
rivers, which include cities and urban areas
that are highly vulnerable to flooding. As of
July 2018, 11 major river basins are with master
plans and flood control plans, while the master
plans and feasibility studies of the remaining
six (6) river basins63 will be updated;
• The Metro Manila Flood Management Project,
Phase I, which will reduce risks in flood-
prone areas, benefitting approximately two (2)
million people, once completed;
63 Abra, Abulug, Tagum-Libuganon, Buayan-Malungun, Jalaur, and Agus River Basins
T H E P R E SI D E N T ’ S R E P O RT 51
TO THE PEOPLE
2016 - 2018
• The Flood Risk Management Project (FRIMP)
for Cagayan, Tagoloan, and Imus Rivers, which
will address serious bank erosion that results
in loss of valuable lands in Cagayan;
• The Integrated Disaster Risk Reduction and
Climate Change Adaptation Measures in the
Low-Lying Areas of Pampanga Bay, which will
reduce flood depth from 1.4-2.9 m to 0.6-1.4 m
and shorten flood duration from 66 days to 17
days after its completion in January 2020;
• The FRIMP for the Cagayan de Oro River,
which will protect 290 hectares and 18,100
structures in the area after its completion in
April 2022. It will reduce the number of people
affected by flooding from 281,740 (Tropical
Storm Sendong) in 2011 to 31,873 based on a
25-year flood return period; and
• The Cavite Industrial Area Flood Management
Project, which will mitigate the flood damages
caused by the overflow of the San Juan
River and the poor drainage system of the
Maalimango Creek. After its completion in
2024, it will protect about 7,000 houses in an
area of 556 hectares from flooding.
 52 T OWA R D S A SE C U R E
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DISASTER PREPAREDNESS AND
RESPONSE
BOLSTERING PREPARATIONS FOR A MAJOR
EARTHQUAKE IN THE GREATER METRO MANILA
AREA (GMMA) AND OTHER AREAS NATIONWIDE.
Almost 63 percent of the country’s total Gross
Domestic Product (GDP) is generated in the
GMMA, which is composed of the NCR and
Regions III and IV-A. That is why, we need
Greater Metro Manila Area Seismic Map
Photo Credit: DOST-PHIVOLCS
to enhance the resilience of these areas to the
devastating impact of a magnitude 7.2 earthquake.
I have issued EO no. 52, s. 2018, which created
the Program Management Office for Earthquake
Resiliency of the GMMA (PMO-ERG) that will
be responsible for integrating and fast-tracking
all government efforts to enhance the earthquake
resiliency of the GMMA. Complementing
our existing institutional mechanisms for
 T H E P R E SI D E N T ’ S R E P O RT 53
TO THE PEOPLE
2016 - 2018

disasters, the PMO-ERG shall spearhead the
implementation of our Two-Pronged Strategy
towards an Earthquake-Resilient GMMA. This
strategy involves reducing risks and enhancing
the resiliency of the GMMA to minimize
casualties and damages to property caused by
earthquakes through various actions at the
national, community, and household levels.64
earthquake. We have also strengthened critical
water facilities, which will ensure adequate water
supply, e.g., strengthening of the Angat Dam
and Dike, retrofitting of the La Mesa and Balara
Treatment facilities, and rehabilitation of the
Umiray-Angat Transbasin Tunnel. In addition,
main water lines and pipes in areas such as
Montalban and Nagtahan are being rehabilitated.65

As part of our initial actions, we are assessing
alternative roads leading to the South Luzon
Expressway (SLEX) and the North Luzon
Expressway (NLEX) to ensure the unhampered
mobility of people and relief items after the
The development of the New Clark City as an
alternative government center is also ongoing. Its
200-hectare national government administrative
center will provide an integrated operations center
for disaster risk recovery and back-up offices

TA BL E 18. TWO-PRONGED STRATEGY TOWARDS

AN EARTHQUAKE-RESILIENT GMMA
R ES IL IENCY
MULTI-LEVEL PREPARATION TEN FOCUS POINTS
NATIONAL Water
• Massive Retrofitting
`` Public Infrastructure
Food
`` Private Infrastructure
• Government and Business Continuity
• Training and Awareness Raising Shelter
`` Community disaster response system
Power
COMMUNITY
• Community Advocacy and Mobilization Medical, Health, and Psychosocial Services
`` Responders/logistics, etc.
`` Emergency Medical Technicians Command, Control, and Communications
`` Contingency Plans
`` Equipment Prepositioning Search, Rescue, and Management of the Dead
`` Volunteer Groups
Fire Protection
HOUSEHOLD
• Individual/Family Preparedness Law and Order
`` Water and Food
`` Renewable Energy, e.g., solar
Transport and Mobility
`` Emergency bags

Source: PMS/Inter-Agency Resiliency Team

64 DENR, op.cit.
65 MWSS, July 19, 2018.

67 DENR, op.cit.
 54 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

of government agencies to ensure continuous

operation and services in times of national
calamities. It is targeted for completion by 2022.66

We have undertaken monitoring to ensure that

accurate and timely earthquake information
in other parts of the country is gathered. We
established four (4) new seismic stations in
Negros Occidental, Negros Oriental, Dinagat
Island, and Lanao del Sur, bringing the total
stations nationwide to 98. We also established strong
motion stations in Leyte, Cebu, and Zamboanga del
Norte and installed intensity meters in Bulacan and
Cebu. These stations and instruments will improve
the detectability of earthquakes and determine its
causes, which are critical considerations in detailed
hazard assessments for disaster risk reduction and
management planning. As earthquakes can cause
tsunamis, we have likewise established Sea Level
or Tsunami Stations in Sultan Kudarat, Negros
Oriental, Eastern Samar, and Batanes, bringing the
total stations nationwide to 18. These will promptly
detect the occurrence of tsunamis in the vicinity of
these areas.67
IMPROVING DISASTER RISK IDENTIFICATION,
MANAGEMENT AND RESPONSE. We have sustained
improvements in the country’s early warning and
hazard mapping capabilities. We installed three
(3) Flood Forecasting and Warning Systems
(FFWS) that include a Flood Forecasting and
Warning Center and Hydrometeorological
Monitoring Facilities in three (3) major river
basins, namely Jalaur, Tagum-Libuagon, and
Cagayan de Oro City, in addition to the existing
five (5) FFWS. FFWS provide flood forecasts that
allow early preparations to avert or minimize
possible destruction to properties or loss of lives.
Shake Drill
Photo Credit: DepEd
(IFSAR), we pursued the implementation of the
Unified Mapping Program, which has generated
reliable and accurate geospatial information
of the country that is critical for planning
and decision making. Under the program, we
generated maps that identify areas susceptible to
various geologic hazards and floods in the 257
priority river basins, among others.
To further enhance our disaster resilience, we
shall provide advisories and warning before the
on-set of an emergency or disaster and provide
better response and coordination with local
emergency service providers.68
We are improving the capacity of LGU personnel,
the country’s first disaster responders. As of June
8, 2018, we provided Basic Life Support and
First Aid Training at the barangay level covering
9,129 personnel nationwide who are dedicated to
providing immediate response to communities.69

Using cutting-edge technologies such as the We are switching to Digital Terrestrial Television
Interferometric Synthetic Aperture Radar Broadcasting (DTTB), which has an Emergency

66 BCDA, July 19, 2018.

67 DENR, op.cit.
68 DICT, May 25, 2018.
69 DILG, May 28, 2018.

Warning Broadcast System (EWBS), a system
which shall be activated to alert and guide the
public of an impending or ongoing emergency
situation by delivering warning information. The
broadcast pilot of EWBS was held on March 7,
2018 in Davao City.
We shall acquire Mobile Operations Vehicle for
Emergency (MOVE) Hub and Dispatch, which
are customized integrated communications
vehicles that will provide warning and resource
information to affected communities; gather
information on spatial data and distressed area
conditions to be used by the National Disaster
Risk Reduction and Management Council
(NDRRMC) or its regional/provincial equivalent;
and serve as network/communication link
between disaster/emergency responders.
We shall develop a Disaster Response
Management Information System (DRMIS), a
software based integrated data application system
that will analyze collected data from different
agencies involved in emergency response. This
will automate the current operation center
processes of the NDRRMC.
BRP Cape San Agustin
Photo Credit: DOTr
70 DOTr, July 17, 2018.
T H E P R E SI D E N T ’ S R E P O RT 55
TO THE PEOPLE
2016 - 2018
To protect our vast and unquantified marine
resources, we shall continue to strengthen our
maritime capability to address the challenges that
confront us in this area.70
Under the Maritime Safety Capability
Improvement Project Phase I, we are acquiring
10 44-meter Multi-Role Response Vessel for the
PCG. These vessels are intended to significantly
improve the PCG’s response to maritime search
and rescue, disaster relief operations, maritime
safety and maritime security. At present, nine (9)
vessels have been delivered while the 10th vessel is
set to be delivered in August 2018.
To extend the country’s presence in the high seas
particularly in our Exclusive Economic Zone
(EEZ) where there is a need to complement
other government agencies, we will acquire two
(2) 94-meter Multi-Role Response Vessels under
the Maritime Safety Capability Improvement
Project Phase II. These vessels can respond to
maritime incidents extending up to the country’s
EEZ. Once acquired, these vessels, together with
the earlier vessel acquisitions, would enhance the
country’s maritime security and capability.
In addition to these maritime assets, which were
procured or are being procured from Japan
through the Japan International Cooperation
Agency (JICA), four (4) 24-meter fast patrol
boats and one (1) 82-meter offshore patrol
vessel are being obtained from France. The first
24-meter boat is due to arrive in the country in
August 2018, and the remaining boats will arrive
later in 2018 and early 2019. The 82-meter vessel
will be delivered in September 2019.
Furthermore, we are planning to procure seven
(7) maritime disaster response helicopters
to elevate our modest capability to a more
respectable level of response to emergencies, and
to protect our maritime domain.
 56 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

CONSTRUCTION OF REGIONAL EVACUATION

CENTERS. We are ensuring that in times of
disaster, we can provide shelter to our people
and lessen disruption in the education of our
children as schools are often used as evacuation
centers. As of May 2018, we are constructing 98
evacuation centers, and completed the following:

TA BL E 1 9. COMPLETED REGIONAL
EVACUATION CENTERS, AS OF MAY
2018 Boracay wetland before rehabilitation efforts
Photo Credit: DENR
CONTRACT
LOCATION REGION AMOUNT
(IN MILLION
PHP)

Brgy. Mudiit, Dolores, Abra CAR 34.7

Brgy. Agtipal, Bacnotan, I 34.4

La Union

Poblacion East, Calasiao, I 34.1

Pangasinan
Brgy. Callaguip, Paoay, I 34.5
Ilocos Norte
Boracay wetland after rehabilitation efforts
San Roque, Mexico, Photo Credit: DENR
Pampanga
III 68.5 RECOVERY AND BUILDING FORWARD
Santa Catalina, Lubao, BETTER
Pampanga
REHABILITATING BORACAY ISLAND AS A
Brgy. Turno, Dipolog City,
Zamboanga Del Norte IX 34.1 SUSTAINABLE TOURISM DESTINATION. In
fulfillment of my Constitutional mandate to
Brgy. San Fernando, X 33.5 protect and promote the people’s right to a balanced
Bukidnon and healthful ecology, I directed the DENR, DILG,
and the DOT to evaluate the environmental
Poblacion, El Salvador City, X 33.7 state of Boracay Island and investigate possible
Misamis Oriental
violations of our environmental and health laws,
Provincial Compound, Brgy. rules, and regulations.
Cabidianan, Nabunturan, XI 34.3
Compostela Valley
The agencies’ investigation found that the waters of
Source: DPWH the Island were severely polluted with a very high
concentration of fecal coliform at the Bolabog Beach,71
which was attributed to insufficient sewer lines and

71 From March 6 to 10, 2018, the fecal coliform level at the Bolabog Beach was 18,000 most probable number (MPN)/100 milliliter (ml), which significantly
exceeded DENR’s standard of 400 MPN/100ml.
 T H E P R E SI D E N T ’ S R E P O RT 57
TO THE PEOPLE
2016 - 2018

the illegal discharge of untreated waste water into

the beach. Other findings include problems on solid
waste management and presence of illegal structures
in the island’s wetlands and forestlands.

It is our moral obligation to ensure that Boracay

Island remains clean, hygienic, and safe. It is, after
all, the crown jewel of Philippine tourism.72 Thus,
upon the recommendation of the NDRRMC, I
issued Presidential Proclamation no. 475, s. 2018.
(Before) Taken on April 27, 2018 showing green algae.
Under this Proclamation, we declared a state Photo Credit: PMS
of calamity in Boracay Island and enforced its
temporary closure from tourists for six (6) months
starting April 26 to October 25, 2018. This will
pave the way for the uninterrupted rehabilitation
of Boracay Island and its restoration as one of the
world’s most beautiful beaches, thereby making
it a sustainable tourism destination.

Our rehabilitation efforts adhere to a framework

consisting of seven (7) Key Result Areas
(KRAs)73 that served as guide for the six-month
(After) Taken on June 19, 2018 showing absence of green algae.
closure period. To provide for the institutional Photo Credit: PMS

F IGUR E 1 5. FECAL COLIFORM LEVELS IN BOLABOG BEACH

20 ,000
19, 000
18,000 18,000
17,000
16, 000
15,000 Monthly Fecal Coliform Levels
14,000
13,000
12,000 Standard Fecal Coliform Level (400 MPN/00ml)
11 ,000
10 ,000
9,00 0
8,00 0
7,00 0
6,00 0 4,140
5,000
4,00 0 3,090 2,640
3,00 0
2,00 0
1,00 0
0
March April May June

Source: DENR

72 DOT, July 18, 2018.

73 (1) Providing social safety nets through employment, livelihood, and training assistance; (2) Ensuring the health and sanitation of Boracay Island;
(3) Decongesting Boracay Island; (4) Easing Traffic Flow; (5) Enforcing the rule of law in the management of Boracay Island; (6) Engaging the public
through an effective domestic and global communications strategy; and (7) Crafting a Medium-Term Comprehensive Ecosystem Rehabilitation and
Recovery Program
 58 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

F IGUR E 1 6. STATUS OF EFFORTS OF THE BORACAY INTER-AGENCY TASK FORCE,

AS OF JULY 19, 2018

KRA 1: PROVISION OF SOCIAL SAFETY NETS KRA 2: HEALTH AND SANITATION

persons assisted under the

2,960 Tulong Panghanapbuhay sa ating

Disadvantaged/Displaced Workers
Program

beneficiaries enrolled under the

Special Training for Employment
1,630 Program, of which 809 already
graduated and 821 are still undergoing • 21 pipes illegally connected to the drainage have been cut
preventing the discharge of waste water into the sea
trainings
• Ordered the hotels and other establishments in the island to
construct their own sewerage treatment plants

39 provided to Aklan farmer’s, and • Five of nine Boracay wetlands will undergo rehabilitation in
PhP fisherfolk’s cooperatives under the coordination with the private sector, i.e., JG Summit, Cebu
MILLION Production Loan Easy Access Pacific, Aboitiz, BTSI, and San Miguel Corporation.

KRA 3: DECONGESTING BORACAY

beneficiaries provided with financial

15,960
assistance of PhP38.55 million
through the Aid to Individuals in
Crisis Situations Updated the study
on the island’s
carrying capacity
KRA 4: EASING OF TRAFFIC FLOW

• 496 structures demolished within the 12-meter Road Right of

Way
• 94% of Cagban Jetty Port - Rotunda Road is ready for the
relocation of electric posts and lines for its widening, 8 electric
posts were already installed.
KRA 6: EFFECTIVE COMMUNICATIONS STRATEGY
KRA 5: ENFORCING THE RULE OF LAW
• Filed charges against 17 officials of the Aklan LGU before
the Office of the Ombudsman for neglect of duty that led to
Boracay Island’s environmental crisis
• Of the 2,269 identified establishments inspected, 95 were
compliant and 561 were not inspected because these were
closed. It can be noted that 1,613 establishments were found to
have one or more violations, as follows:
hh 392 lacked ECCs;
hh 615 had no building permits;
hh 447 had no Fire Safety Evaluation Clearances;
hh 135 had no fire Safety Inspection Certificates;
hh 1,086 were operating with no Mayor’s permits;
hh 706 had no sanitary permits; and
hh 553 lacked discharge permit and sewage connection.
• 188 out of 234 illegal occupants of shoreline easement were
issued with show-cause orders.

• Disseminated travel advisories on the Boracay closure
• Commenced Advocacy and Promotion Campaign on
Boracay Rehabilitation through information, education, and
communication materials, television plugs, and printed
advertisment
KRA 7: BORACAY ACTION PLAN
• Ongoing coordination for the drafting of the Plan, which is
targeted to be finished by second week of August

Sources and Photo Credits: Boracay Inter-Agency Task Force, DOLE, DPWH
 T H E P R E SI D E N T ’ S R E P O RT 59
TO THE PEOPLE
2016 - 2018

mechanism to implement our rehabilitation generation deserves no less. Sustainable tourism

efforts, I issued EO no. 53, s. 2018, creating the
Boracay Inter-agency Task Force headed by
the DENR with the DILG, DOT, DOJ, DPWH,
DSWD, DTI, TIEZA, PNP, the Provincial
Government of Aklan, and the Municipal
Government of Malay as members.
is our legacy to the future.75
I urge the LGUs to proactively implement our
laws and not wait for the National Government
to swoop down on your areas just to make you
do your work.

With a PhP1.18 billion budget released as of
July 2018, our rehabilitation efforts have gained
significant momentum as manifested in the
significant decline of the fecal coliform level
in Bolabog Beach from 18,000 Most Probable
Number (MPN)/100 milliliter (ml) recorded in
March 2018 to 2,640 MPN/100ml as of end-June
2018 (see Figure 15).
To support these efforts, I have called on the
Senate to pass the National Land Use Act,
which will pave the way for a national land use
policy to institutionalize rational, holistic, and
just allocation, utilization, management, and
development of our lands. It will also address our
competing land requirements for food, housing,
business, and environmental conservation.

The decline in fecal coliform level has also been RESPONDING TO THE EFFECTS OF THE MAYON
confirmed by the notable decrease in the presence VOLCANO ERUPTION. On January 13, 2018, Mayon
of algae along the Island’s beaches. Volcano entered a heightened period of unrest,
that led the Philippine Institute of Volcanology
Moving forward, the DOT will take the lead and Seismology (PHIVOLCS) to raise its alert
in promoting sustainable tourism. Under its level status, initially to Alert Level 2 (increasing
new and young leadership, it will work with all unrest) on January 14, and consequently to Alert
tourism stakeholders, both in government and
the private sector, to develop policies that not
only take into consideration the growing needs of
visitors and the industry but also take full account
of the economic, social, and ecological impact
on host communities and their environment. It
will be long-term in mindset and strive to create
sustainable benefits.74

All stakeholders in key destinations around

the country should preserve and protect our
environment. Everyone has to follow the laws
and be compliant to the building code and beach
and foreshore easements. This is not just talk, we
will enforce. We cannot allow what happened
to Boracay Island to happen to Siargao, Coron,
Mayon Volcano eruption
El Nido, Panglao, Mactan, Oslob, or any other Photo Credit: DOST-PHIVOLCS
tourist destination in the country. The next

74 DOT, op.cit.
75 Ibid.
 60 T OWA R D S A SE C U R E
A N D P E AC E F U L NAT IO N

Level 3 (increased tendency toward eruption) F IGUR E 1 7. WELFARE ASSISTANCE

on the same day. On January 22, 2018, Mayon TO MAYON EVACUEES
Volcano’s activities signified an increase in mass

PhP90.91
eruption rate, prompting the PHIVOLCS to further
raise its alert level status to Alert Level 4 (hazardous
eruption imminent). MILLION
worth of food and
non-food items
Mayon’s volcanic eruptions have affected close

PhP61.97
to 24,000 families or about 91,000 people in 61
barangays in the cities of Tabaco, Ligao, and
Legazpi, and the municipalities of Bacacay, Camalig,
Guinobatan, Daraga, Malilipot, and Sto. Domingo
MILLION
for cash-for-work
in the province of Albay. More than 15,700

PhP30.20
families or about 60,400 people have taken refuge
in government evacuation centers, while the rest
stayed with families or friends. The eruption has MILLION
resulted in PhP166.30 million worth of damages to for the construction of
354 units of temporary
the agriculture sector. learning spaces

Despite the destructive nature of the eruptions, we construction of

achieved zero casualty through the various proactive
measures and the cooperation of the affected
citizens. Anticipating the potential harm of the
336
temporary toilets and
evacuation centers
eruptions to the people of Albay, we conducted, as
early as January 15, 2018, a pre-emptive evacuation
of about 17,000 families in Camalig, Guinobatan, provision of
Ligao City, Daraga, Malilipot, Tabaco City, Legazpi
City, and Sto. Domingo. 33,582 hygiene kits

We released PhP472.11 million worth of assistance

to those residing in evacuation centers and with
families or friends, including: 76
9,273
medical consultations
and

PhP22.08
MILLION
worth of farm equipment,
supplies, and materials.

Source: NDRRMC

76 DND-OCD, March 21, 2018.

 TOWARDS RESTORING
FAITH AND TRUST
IN GOVERNMENT

Our people deserve

efficient, effective, and
responsive government
services. They deserve
nothing less.

President Rodrigo Roa Duterte
State of the Nation Address
July 23, 2018

Photo Credits: PCOO

 62 T OWA R D S R E ST O R I N G
FA I T H A N D T RU ST
I N G OV E R N M E N T

Photo Credit: PCOO

RIDDING THE GOVERNMENT

OF CORRUPTION
4
CHAPTER

We all have a stake in the fight against corruption. I have

been serving the public for almost forty years. I know
what corruption can do. Corruption impedes economic
development, steals money from those who need it the
most, weakens governance and the rule of law, breeds crime,
and squanders resources. It is a leech that takes away the
opportunity of development from people, communities, and
countries. Armed with these reasons, rooting out corruption
in the government will continue to be my utmost priority.
 T H E P R E SI D E N T ’ S R E P O RT 63
TO THE PEOPLE
2016 - 2018

CLEANSING THE GOVERNMENT OF in the AFP and PNP, and other public officers
CORRUPT OFFICIALS allegedly involved in graft and corrupt practices.78

From the moment I took the challenge of being
President, I have been firm in taking a zero-
tolerance attitude towards corruption. In my SONA
last year, I vowed that officials will be removed on a
mere “whiff of corruption.” While it is unfortunate
that even those who convinced me to run and
supported my candidacy are involved in corruption,
I have nonetheless spared no one. In just a span of
two (2) years, I have removed more than a hundred
high-ranking officials and government personnel
who were linked to graft and corrupt practices,
including my own appointees. Those who I have
not removed were ordered to resign.
Let me be very clear: use public funds honestly
and efficiently and I am on your side. Corrupt the
people’s hard-earned money and I am your enemy.
There will be no let up as I continue to fulfill my
promise to restore the faith and trust of the Filipino
people in the government. To all public servants,
myself included, let us resist any temptation that
will taint our honor and reputation as public
servants. Public service must be corruption-free.
ESTABLISHMENT OF THE PRESIDENTIAL ANTI-
CORRUPTION COMMISSION. To demonstrate my
resolve in fighting corruption, on October 4, 2017,
I signed EO no. 4377 creating the Presidential
Anti-Corruption Commission (PACC) to directly
assist me in investigating, hearing, and conducting
lifestyle checks and fact-finding inquiries on
all presidential appointees with ranks of at least
Assistant Regional Director, including appointees
On March 6, 2018, I directed the PACC officials to
spare no one in the campaign against corruption.
Since then, the PACC has submitted their
recommendations, including the uncovering
of a jewelry smuggling syndicate at the Ninoy
Aquino International Airport (NAIA) Terminal
3.79 As of March 2018, the PACC had reviewed
327 cases of corruption.
STRENGTHENING BUDGET
TRANSPARENCY AND
ACCOUNTABILITY
To deter corrupt officials from misusing and
pocketing public funds, and to empower our
citizens to monitor and scrutinize public
spending, we made great strides in disclosing the
country’s budget information.
The Open Budget Survey of the International
Budget Partnership80 recognized our efforts and in
2017, the Philippines ranked first in Asia in terms of
budget transparency (see Figure 17). We are one of
only four (4) countries to achieve a moderate score
in the category, sharing this distinction with New
Zealand, Australia, and the United Kingdom.81
Countries covered by the Open Budget Survey
were given a score between 0 to 100 in three (3)
categories: Transparency, Public Participation,
and Budget Oversight. The Philippines received
a score of 41 in public participation, 67 in
transparency, and 65 in budget oversight.

77 Creating the Presidential Anti-Corruption Commission and Providing for its Powers, Duties and Functions, and for Other Purposes
78 PACC, July 18, 2018.
79 As early as December 2017, the PACC had been monitoring the involvement of high-ranking officials from various government agencies in the jewelry
smuggling syndicate at the NAIA. The PACC claimed that this smuggling has links to fund raising activities for terrorists and insurgent groups. The
PACC is closely monitoring eight (8) more syndicates with the same modus operandi.
80 A biennial survey, which uses internationally-accepted criteria developed by multilateral organizations such as the International Monetary Fund, the
Organisation for Economic Co-operation and Development, the International Organisation of Supreme Audit Institutions, and the Global Initiative for
Fiscal Transparency to assess budget transparency.
81 DBM, July 17, 2018.
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FIGURE 18. BUDGET TRANSPARENCY RANK 2017

PHILIPPINES RANK FIRST IN ASIA FOR BUDGET TRANSPARENCY,

ACCORDING TO THE OPEN BUDGET SURVEY1

Source: DBM
 T H E P R E SI D E N T ’ S R E P O RT 65
TO THE PEOPLE
2016 - 2018

INSTITUTING GOOD GOVERNANCE IN PROMOTING INTEGRITY IN OUR

THE GOCCS82 REVENUE GENERATING AGENCIES87

To further correct the corrupt practices in ANTI-CORRUPTION EFFORTS IN REVENUE

government and review all irregular, unnecessary,
excessive, extravagant, and unconscionable
allowances, incentives, benefits, and/or bonuses
in the government corporate sector, I signed EO
no. 36 83 on July 28, 2017 to revise and reevaluate
the Compensation and Position Classification
System (CPCS) of GOCCs and set an interim
measure for the compensation framework of
GOCCs covered by RA no. 10149, i.e., adoption
of modified salary schedule, provided under EO
no. 201, s. 2016 84 and the benefits provided under
Congressional Joint Resolution no. 4.85
We approved the application of 52 GOCCs to adopt
the modified salary scheme as of July 13, 2018.
Further, through good governance, transparency,
and fiscal discipline, we were able to collect PhP30.46
billion in dividends from 53 GOCCs in 2017, with
the following86 remitting the highest dividends:
AGENCIES. We continued to accelerate the
implementation of anti-corruption programs
in revenue generating agencies. Under my
Administration, we have raised the integrity of
our revenue generating agencies through the
DOF’s Revenue Integrity Protection Service
(RIPS) and BIR’s Run After Tax Evaders (RATE)
Programs. We also initiated the Bureau of
Customs’ (BOC) Action Team Against Smugglers
(BATAS) to be responsive to the intensified anti-
smuggling thrusts of the government.
I instructed the BOC and the different freeport
zones of the country to simultaneously destroy
all smuggled luxury vehicles. As a result, we have
condemned and destroyed 53 smuggled vehicles
in the first quarter of 2018, sending a strong
message that we are serious in our fight against
corruption and do not tolerate smuggling.

TABLE 20. TOP TEN GOCCS WITH HIGHEST DIVIDENDS REMITTED IN 2017
(IN MILLION PHP)
RANK RANK

1 Philippine Deposit Insurance

Corporation (PDIC) 7,641.22 6
Bangko Sentral ng
Pilipinas (BSP) 1,842.50
2 Civil Aviation Authority of
the Philippines (CAAP) 5,393.88 7 National Power Corporation
(NAPOCOR) 1,398.94
3 Development Bank of the
Philippines (DBP) 2,516.16 8 Gaming Corporation (PAGCOR) 1,182.62
Philippine Amusement and

4 Manila International
Airport Authority (MIAA) 2,226.52 9 Subic Bay Metropolitan
Authority (SBMA) 923.60
5
Philippine Ports Authority
(PPA) 1,956.43 10 Philippine Economic Zone
Authority (PEZA) 622.91
Source: DOF
82 GCG, July 19, 2018.
83 Suspending the Compensation and Position Classification System under EO no. 203, s. 2016, providing for interim compensation adjustments, and
for other purposes
84 Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for Both Civilian and Military and
Uniformed Personnel. This means that once approved by the GCG, the GOCC can apply the rates set in EO no. 201, s. 2016.
85 Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel
and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for other Purposes
86 The LANDBANK was exempted from remitting its PhP6.00-billion dividends to allow it to recapitalize and better serve the development needs of the
country. (Source: https://www.dof.gov.ph/index.php/gocc-collections-hit-p30-45-b-in-2017/)
87 DOF, July 18, 2018.
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TABLE 21. DISPOSITION OF SMUGGLED VEHICLES, AS OF FIRST QUARTER 2018

Smuggled Vehicles
NUMBER OF
AGENCY SMUGGLED VEHICLES

BOC88
30
SBMA89
9
Cagayan Economic Zone
Authority (CEZA) 14
TOTAL
53
Source: BOC, CEZA
Photo Credit: PCOO

On top of these, the BOC condemned more

than 100 vehicles in Manila and Cebu on May
30, 2018.90 In addition, more than 70 smuggled
vehicles were destroyed on July 30, 2018. This
is part of the more than 800 alleged smuggled
vehicles from CEZA which will also be destroyed.

FILING OF TAX EVASION AND OTHER RELATED

CASES. Through strong and decisive leadership,
we implemented the rule of law and collected
the right amount of taxes and other liabilities.
Exposing these cases will deter those who will
try to commit the same crime. The settlement
of taxes by these entities and their other
obligations to the government contributed to
the increase in government revenues, which can
be used for various programs directly benefiting
the Filipino people.
Smuggled luxury vehicles were destroyed on February 6, 2018 at the BOC
Central Office in the Port Area, Manila
Photo Credit: PCOO • Mighty Corporation. In October 2017, we
collected PhP30 billion in taxes from the

88 Smuggled vehicles from the Port of Manila, Manila International Container Port, Port of Cebu, and Port of Davao.
89 Vehicles condemned in Manila during the BOC anniversary on February 6, 2018
90 BOC, May 29, 2018.

settlement of Mighty Corporation of its tax
liabilities. This has been one of the largest tax
settlement in the history of the Philippines.
With Japan Tobacco Inc.’s acquisition of the
assets of Mighty Corporation, excise tax
collection in the first two months since the
transaction has tripled.
• Philippine Airlines (PAL). In November 2017,
we received checks from PAL amounting to
PhP5.68 billion and PhP258.59 million, as
payment for its unpaid navigational fees and
other charges amounting to PhP6 billion,
which were incurred since the 1970’s up to July
30, 2017. PAL’s settlement of its government
debt within 10 days from demand was a
manifestation of the company’s trust and
confidence in my Administration.91
• Mile Long Property. After a series of legal battles
and with our strong resolve, Sunvar Realty
Development Corporation (Sunvar) vacated
in August 2017 the Mile Long Property owned
by the national government and NAPOCOR.
Based on our computations, Sunvar has to
pay PhP2.14 billion in unpaid rent to the
government. The case is now pending before
the Court of Appeals. We are optimistic that it
will be resolved in favor of the government to
generate additional revenues for our programs
and projects.
Mile Long Property in Makati City
Photo Credit: PTV-4
91 DOTr, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 67
TO THE PEOPLE
2016 - 2018
In my fight against
corruption,
my friendships
end where my
duty to my country
begins.
WAY FORWARD: TOWARDS A
CORRUPT-FREE PHILIPPINES
Addressing corruption is not the sole
responsibility of any sector but a joint
commitment by all stakeholders. Neither is it a
problem that can be resolved overnight. Thus,
we continue to work on improving our policies
so leakages in the government coffers are
plugged and abusive officials are removed from
their posts. We will also pursue innovations
in governance that will eliminate avenues for
corruption. I also reiterate my call to pass an
amendment to the procurement law to ensure
that the goods and services we procure are of
good quality and are responsive to the needs of
the people.
I value friendship, make no mistake about it. But
it has its limits. In the fight against corruption,
my friendships end where my duty to my country
begins. This is a lonely place I am hemmed in.
Do not make it lonelier by forcing me to end our
friendship because you gave me the reason to
end it. It pains me to end friendships. That is why
I appeal to you to help me in my cause so that our
friendship will endure.
I enjoin the public to demand even more
accountability from us, your public servants.
Hold us, both appointive and elective officials,
responsible for our actions. Exert more pressure
on public officials, continue reporting corrupt
officials, and let us win this fight together.
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Photo Credit: PCSO

MAKING A PEOPLE-CENTRIC
BUREAUCRACY
5
CHAPTER

Corruption destroys those who succumb to its temptation

and eventually it is the innocent who will suffer and bear its
horrible consequences. While we run after those who steal
the people’s money, we are also enhancing the government’s
delivery of frontline services. We have passed RA no. 11032
or the Ease of Doing Business Act of 2018 in May. This is
a significant legislation in our fight against corruption and
improving service delivery. However, we need to sustain
our momentum. I direct all local government units and
government agencies to faithfully implement this law and
simplify their process.
 T H E P R E SI D E N T ’ S R E P O RT 69
TO THE PEOPLE
2016 - 2018

I particularly call the attention of the agencies
with the most number of red tape-related
reports from the public to make your services
truly customer-friendly. Our people, who pay
for your salaries, deserve efficient, effective, and
responsive government services, and not a lousy
and corrupt bureaucracy. They deserve nothing
less.
ADDRESSING PUBLIC CONCERNS
VIA CITIZENS’ COMPLAINT HOTLINES
The public reports incidents of graft and corrupt
practices to the Contact Center ng Bayan 16565 and
the Hotline 8888. Reports through these hotlines
enabled us to address unfriendly and ineffective
service delivery and investigate cases against
abusive or non-performing government workers.
The Civil Service Commission (CSC) receives
reports from the public related to violations of
the Anti-Red Tape Act (ARTA) via the Contact
Center ng Bayan 16565. This includes complaints
on slow processing of requests, unclear
procedures, unattended hotline, discourtesy, and
failure to act on request.92
In the case of the GSIS, the agency was ranked in
2016 as one of the agencies with most number of
ARTA-related reports specifically for slow process,
unclear procedures, and unattended hotline
number. In response, the GSIS undertook reforms
and streamlined their processes to make it more

TA BL E 2 2 . AGENCIES WITH THE MOST ARTA-RELATED REPORTS

AUGUST 2016 TO NOVEMBER 2017 RANKING93 NOVEMBER 2017 TO JUNE 2018 RANKING94
RANK RANK

Land Land Philippine

Social Security
1 System 6 Registration 1 Transportation 6 Statistics
Authority Office Authority

Land Government Home National

2 Transportation 7 Service Insurance 2 Development 7 Bureau of
Office System Mutual Fund Investigation

Home Philippine Social Security Department of

3 Development 8 National Police 3 System 8 Foreign Affairs
Mutual Fund

Philippine
Bureau of Philippine Bureau of Health
4 Internal 9 Statistics 4 Internal 9 Insurance
Revenue Authority Revenue Corporation

Land
Transportation Land Professional
Department of
5 Foreign Affairs 10 Franchising 5 Registration 10 Regulation
Regulatory Board Authority Commission

Source: CSC Contact Center ng Bayan

92 CSC, July 19, 2018.

93 Rating for the period August 1, 2016 to November 3, 2017.
94 Rating for the period November 4, 2017 to May 15, 2018. For the same period, the CSC reported that the top five agencies with the highest resolution rate of ARTA-
related complaints were the Professional Regulation Commission (100%); LANDBANK (100%); BIR (98.17%); PhilHealth (97.83%); and SSS (96.7%)
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responsive, member-friendly, and accessible,
which include the reduction of processing time
for loan application from five (5) days to three
(3) days. It also reduced the processing time for
retirement claims, separation and life insurance
benefits from 75 days to 30 days.95
Meanwhile, from November 2017 to July 8, 2018,
concerned government agencies acted upon 26,124
complaints against government services and
personnel received by the 8888 Citizens’ Complaint
Center (8888 CCC) or Hotline 8888.96
The DILG also received complaints against offices
of LGUs. To address public concerns, the DILG
designated the Public Assistance and Complaint
Center to receive and process complaints, including
those coming from the CSC and the OCS.
Complaints received by the Public Assistance and
Complaint Center are either resolved or referred to
concerned offices in the LGUs.
The DILG further issued Memorandum Circular
no. 2017-109 on August 23, 2017 to sustain and
ensure the effectivity of its efforts to address public
concerns. The Circular directed all Provincial
Governors, City and Municipal Mayors, DILG-
Regional Directors and the Regional Director
of ARMM to designate a Permanent Action
Team (PAT) to answer all queries, concerns
and complaints of their respective constituents
received through the Citizens’ Complaint Hotline
8888.97
Likewise, through the DILG’s Bantay Kaagapay,
Bantay Korapsyon program, the DILG will
monitor the accomplishments of LGUs, and
their management of their resources in support

TA BL E 2 3. PUBLIC CONCERNS REPORTED IN HOTLINE 8888

AGENCIES WITH THE MOST NUMBER OF COMPLAINTS AGENCIES WITH THE MOST NUMBER OF COMPLAINTS
RECEIVED AGAINST THEIR OFFICIALS AND EMPLOYEES RECEIVED AGAINST THEIR SERVICES
AS OF JULY 8, 2018 AS OF JULY 9, 2018
NUMBER OF REPORTS RECEIVED NUMBER OF REPORTS RECEIVED

1 DILG 2,518 6 LTO 183 1 DILG 3,384 6 DepEd 1,168

DILG
2 PNP 939 7 Region
VII
182 2 Pag-IBIG 3,132 7 BIR 1,161

3 DepEd 451 8 BIR 175 3 SSS 2,534 8 DOTr 988

4 DILG NCR 341 9

LGU
Manila 159 4 LTO 1,764 9 PSA 760

5 COMELEC 298 10 DENR 154 5 DFA 1,562 10 PNP 737

Source: OCS

95 OCS, Streamlining of Services Reported in the Cabinet Assistance System Meeting, May 15, 2018; GSIS, August 29, 2017.
96 OCS, July 21, 2018.
97 DILG, Response to Hotline 8888 Concerns, April 24, 2018.
 T H E P R E SI D E N T ’ S R E P O RT 71
TO THE PEOPLE
2016 - 2018

F IGUR E 1 9. BANTAY KORAPSYON May 4, 2018, directing all government agencies

PROGRAM and instrumentalities under the Executive
Branch, including GOCCs, to respond to public
Addressing corruption, exacting accountability, and
promoting good governance requests and concerns involving applications
for any right, privilege, permit, license, reward,
EDUCATE PREVENT DETER
concession, or any modifications thereat
Info drive and • Streamlined LGU • Acting on within 15 days. While there needs to be more
awareness- processes and complaints improvement in making government service
building on systems received (Hotline customer friendly, government offices have
anti-corruption • Strict monitoring 8888, Office of undertaken measures to make effective their
laws and policies of LGU projects the President)
respective delivery of public service.
and compliance • Fact-finding and
with laws case referrals
ENHANCING BUSINESS PERMITS AND
LICENSING SYSTEM (BPLS). To realize increased
Source: DILG
competitiveness and ease of doing business
to our campaign against illegal drugs and through automation, the DILG, DTI, and DICT
criminality. issued Joint Memorandum Circular no. 2016-01
that introduced the new BPLS standards to reduce
Through this, we will be able to ensure that local processing time of all government transactions
executives champion our priority agenda and operate in all cities and municipalities.
effectively absent of any form of corruption.98
Of the 1,516 cities and municipalities (except
those in the ARMM), 910 LGUs (60.03 percent)
STREAMLINING GOVERNMENT are fully compliant with the new standards of
SERVICES the BPLS for both new and renewal of business
applications as of June 2018 (see Figure 20).99
Building a transparent, responsive, and people-
centric bureaucracy has always been one of F IGUR E 2 0. LGU COMPLIANCE
my advocacies, and my Administration is TO THE BPLS
continuously improving all frontline services to As of June 28, 2018
achieve this. I am committed to ensure that the
Filipinos’ needs are immediately catered to, bereft 955 LGUs compliant with all the standard
of any form of corruption and inconvenience, (63%) reforms for new business applications
during my term and hereafter. We are moving
on from the long, inefficient, and leakage-laden
LGUs compliant with all the standard
processes that forced our countrymen to wait 990 reforms for renewal of business
in long queues and even pay grease money just (65%) applications
to avail of basic government services that they
should be enjoying in the first place.

Even before the enactment of RA no. 11032, I

910
(60.03%)
LGUs fully compliant with the new
standards of the BPLS for both new
and renewal of business application
signed Memorandum Circular (MC) no. 44 on
Universe: 1,516 cities and municipalities (except those in ARMM)

98 DILG, Pre-SONA Presentation, July 11, 2018. Source: DILG

99 DILG, June 28, 2018.
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TABLE 24. BPLS STANDARDS TO REDUCE PROCESSING TIME

FOR GOVERNMENT TRANSACTIONS
OLD STANDARD NEW STANDARD

Processing of new • 5 to 10 days • 1 to 2 days

business registration • 5 steps for new business registration • 3 steps for new business registration

• 5 days or less • 1 day or less

Processing of business
• 5 steps for renewal of business • 3 steps for renewal of business
registration renewal
registration registration

Adoption of a unified print and electronic

form that consolidates all information
Unified form Adoption of a unified form
needed by various local government
departments

Maximum of 2 signatories
At least 2 signatories
(Mayor and the Treasurer/BPLO with
Signatories (Mayor and the Treasurer/Business Permits
alternatives) using electronic or digital
and Licensing Officer [BPLO])
signature
Source: DILG

On July 18, 2017, the DICT launched the
Electronic Business Permits and Licensing
System or eBPLS, a cloud-based software that
enables LGUs to process application for new and
renewal of business permits electronically.
effort to simplify government processes, we
launched on October 2, 2017 the blue-colored
multipurpose NBI clearance with a fixed rate of
PhP130.00. As of May 2018, the NBI had issued
4,915,680 multipurpose clearances.101

Through the eBPLS, the LGUs are able to process
and issue the business permits online within 10
minutes or less. Three (3) LGUs, namely Baler,
Aurora; Paete, Laguna; and Taal, Batangas are
fully implementing the eBPLS, while 34 LGUs
(see Table 25) are in the initial implementation
stage for database build-up and testing. To date,
the DICT provides free access and use of its
cloud-based eBPLS to 157 LGUs.100
LAUNCHING OF THE MULTIPURPOSE NBI
CLEARANCE. Previously, there were various types
of NBI clearance issued for specific purposes, e.g.,
for employment, travel abroad, gun license, and
visa application. In line with my Administration’s
100 DICT, July 18, 2018.
101 NBI, July 20, 2018.
102 Ibid.
We also brought NBI clearance-processing
services even closer to the people. From 90
processing sites last year, 116 sites are now
stationed nationwide to cater to the growing
demand for clearances. The NBI has also been
an active partner of One-Stop Shop Centers
for OFWs. In the first quarter of 2018, 47,976
OFWs were assisted with their respective NBI
clearances. This is a remarkable increase from
the 28,389 OFWs that were assisted in 2016.102
To lessen long queues in the NBI main office
and satellite offices, the NBI entered into a
Memorandum of Agreement with Philippine
Postal Corp. (PHLPost) for the Manila Central
 T H E P R E SI D E N T ’ S R E P O RT 73
TO THE PEOPLE
2016 - 2018

TABLE 25. LGUs WITH INITIAL

IMPLEMENTATION OF THE eBPLS We have also established 20 Zip Lanes nationwide,
1 Gamu, Isabela which are one-stop shops for government
2 Guiguinto, Bulacan
frontline services, e.g., issuance of NBI clearance,
3 Alubijid, Misamis Oriental
in PHLPost offices nationwide.103
4 Baggao, Cagayan
5 Tayabas City, Quezon
6 Mina, Iloilo
IMPROVING THE PASSPORT SYSTEM.104 We
7 Catbalogan City, Samar witnessed an influx of passport applicants due
8 San Guillermo, Isabela to the increasing number of Filipinos wanting
9 Diffun, Quirino to travel abroad because of rising incomes and
10 Castillejos, Zambales affordable flights. We also saw a surge in passport
11 Pozorrubio, Pangasinan
demand when we amended the 1996 Passport
12 Maddela, Quirino
Law in August 2017105,which extended the
13 Jasaan, Misamis Oriental
14 Dasol, Pangasinan
validity of Philippine passports from five (5) to
15 Catarman, Northern Samar
10 years.
16 Banna, Ilocos Norte
17 Maydolong, Eastern Samar From July 2016 to June 2018, the DFA issued
18 Angadanan, Isabela 7,412,146 passports, higher by 21 percent from
19 Iriga City, Camarines Sur 6,110,904 passports issued from July 2014 to
20 Trento, Agusan del Sur
June 2016.
21 Cagwait, Surigao del Sur
22 Lemery, Batangas
23 Laoac, Pangasinan
In 2017, the daily production of passports in the
24 San Esteban, Ilocos Sur
Philippines averaged 10,592106, 1,592 higher than
25 Bautista, Pangasinan the average 9,000 weekday appointment slots in
26 Dipaculao, Aurora consular offices nationwide. In the first half of
27 Talavera, Nueva Ecija 2018 alone, the DFA has issued 57.9 percent of
28 Macabebe, Pampanga the total target passport set for the year.
29 San Antonio, Zambales
30 Siniloan, Laguna
We acknowledge that passport application slots
31 Coron, Palawan
32 Talisay, Camarines Norte
have become scarce because of the high demand.
33 Makato, Aklan
To efficiently address this, we have increased the
34 Lope De Vega, Northern Samar daily processing capacity of the DFA-ASEANA
from 1,900 to 3,300 applications, and removed
Source: DICT
more than 50,000 bogus online appointments,
Post Office to serve as a complementary NBI and appointment slots previously reserved for
processing site. The Post Office opens five (5) travel agencies. We overbooked appointments
counters dedicated to processing NBI clearances in different Consular Offices to optimize daily
daily. PHLPost was able to issue 28,695 clearances slots lost because of no-show applicants in their
during the first quarter of 2018, a significant appointments. Aside from these, we undertook
improvement compared to 4,602 clearances in 2017. the following measures:

103 OPAEAITC, May 22, 2018.

104 DFA, July 21, 2018.
105 RA no. 10928, An Act Extending the validity of Philippine Passports, Amending for the Purpose Section 10 of RA no. 8239, Otherwise known as the
“Philippine Passport Act of 1996”, and for other Purposes.
106 This was computed using 23 working days per month.
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Inaguration of the new Consular Office in San Nicolas, Ilocos Norte.

Photo Credit: DFA

• Inaugurated new consular offices in San

Nicolas, Ilocos Norte and Santiago City, Isabela.
We are preparing to open six (6) more consular
offices107 in 2018, and we plan to establish nine
(9) more in 2019;108

• Opened DFA-ASEANA and other mall-based

Consular Offices every Saturdays;

• Conducted Mobile Passporting Services in 88

key locations nationwide that served 53,884
passport applicants in 2017;

• Deployed eight (8) Passport on Wheels

beginning January 15, 2018 in Metro Manila,
each with a processing capacity of 500 passport
applications daily. Together with the APO
Production Unit, Inc., the DFA will be adding
two (2) more vans by July 2018, which will
increase the passport processing capacity by
1,000 applications daily; Passport on Wheels van.
Photo Credit: DFA

107 Identified sites are Bulacan, Rizal, Laguna, Cavite, Davao del Norte, and Misamis Occidental.
108 Identified sites are Cebu, Caloocan City, Zambales, Aklan, Camarines Sur, Agusan del Sur, Pagadian, Mindoro, and Tarlac.

• Streamlined passport processing by reducing
requirements from seven (7) documents to only
four (4), i.e., confirmed appointment schedule;
duly accomplished passport application form;
PSA-authenticated birth certificate, and one
(1) valid government-issued ID to make
processing faster and convenient;
• Launched the passport ePayment Portal on
June 14, 2018 to help increase its capacity to
receive and process passport applications. The
system is expected to reduce the incidence of
no-shows in consular offices. By pre-paying,
applicants are encouraged to show up; and
• Improved the Online Appointment System
by providing instant applicants information
regarding walk-in eligibility, the nearest possible
consular or field office, and a color-coded
availability of appointment dates, allowing the
DFA to speed up the processing of passports
and serve its clientele more efficiently.
The DFA also launched the First Time OFW Portal
on January 19, 2018. It provides first-time OFWs
passport appointment slots that can be accessed
by licensed recruitment agencies accredited by the
POEA or registered with the DFA.
These efforts enabled the DFA to increase its
daily capacity from 9,000 passports in May 2017
to 17,000 passports in June 2018. By the end of
2018, we are projecting that the DFA will be able
to issue 26,000 passports daily.
A feedback mechanism was also established in
October 2017 to gauge public sentiments about
the DFA’s services. As of December 31, 2017, 97
percent of the Filipinos assisted rated the DFA’s
assistance as “good” or “better”.109
109 DFA, July 21, 2018.
110 DOLE, July 21, 2018.
111 1800-8888-1349 for domestic and 800-8888-1349 for international.
112 As defined in Rule 1020 or Registry of Establishment, every employer shall register his business with the Regional Labor Office or authorized
representative having jurisdiction thereof to form part of a databank of all covered establishments.
T H E P R E SI D E N T ’ S R E P O RT 75
TO THE PEOPLE
2016 - 2018
ENSURING ACCESSIBILITY OF LABOR-RELATED
SERVICES.110 Everyone who contributes her or
his talents to nation-building deserves nothing
less than a share of the fruits of such hard work.
We instituted the following measures to assist
Filipino workers in availing of frontline services
more efficiently:
• Improved the response time of key frontline
services covered by the 72-hour policy, such as
the registration of workers association, collective
bargaining agreement, union registration and
issuance of permits, licenses, and certificates of
registration from the previous five (5) days to
two (2) weeks to the present six (6) to 72 hours.
This reduced the process cycle time by 25 to 70
percent. As of June 2018, 8.530 million clients
have been served, of which 6.680 million or 81
percent were served in less than 24 hours; and
• Provided online access to the checklist of
requirements and required forms, ensured
the operation of a 24/7 hotline service, and
enhanced online systems and processes.
Workers can also call the DOLE’s Hotline 1349
anytime to raise their respective issues and
concerns111, such as night shift differential and
13th month pay computation; registration of
establishment under Rule 1020112; matters related
to collective bargaining agreement; availment
of benefits, among others. From September
2016 to June 2018, the hotline has attended to
182,330 labor and employment-related concerns
emanating from 141,641 calls received.
PROMOTING EFFICIENCY IN THE TRANSPORTATION
SECTOR. We focused our efforts on addressing
pressing public concerns on transport services.
 76 T OWA R D S R E ST O R I N G
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• Extended the Validity of the Driver’s License

and Implemented Reforms in the Land
Transportation Office (LTO). As early as 2016,
I gave instructions to the LTO, through the
DOTr, to extend the validity of the driver’s
licenses from three (3) to five (5) years because
I do not want to burden Filipino drivers in
frequently renewing their licenses, especially
the deserving drivers who abide by traffic laws,
rules and regulations.

In October 2016, the LTO started the issuance of

driver’s licenses with a five-year validity period.
This initiative was later adopted by Congress
when I signed into law RA no. 10930,113 which
extended the validity of professional and non-
professional driver’s license from three (3) to
Driver’s licenses validity was extended from threee (3) years to five (5) years.
five (5) years. In fact, under this law, license Photo Credit: DOTr
holders may renew their licenses even up to 10
more years if they did not commit any violation.

We experienced backlogs in the issuance of
license cards in 2016 because of the writ of
injunction issued by the Manila Regional Trial
Court in October 2015 to the supplier due to
a questionable contract. The total backlog in
the delivery of license cards with three-year
validity reached two (2) million by June 2016.
To address this, we procured three (3) million
license cards in November 2016 through direct
contracting from the exclusive distributor and
started printing licenses in almost all LTO
licensing centers nationwide.
• Addressed the License Plate Backlog. One of the
To address the two-million backlog of five-year
validity driver’s license cards, the LTO procured
six (6) million driver’s license cards amounting
to PhP929.67 million. On August 29, 2017,
the LTO started printing cards with five-year
validity in the NCR.
To prevent future license issuance delays,
we extended the operating hours of the LTO
licensing centers until 9:00 PM on weekdays
and opened off-site printing centers from
8:00 AM to 5:00 PM on weekends. We
complemented this effort by activating Driver’s
License Renewal Offices in various malls in
Metro Manila and other parts of the country.
most pressing challenges that I inherited from
the past administrations was the three-million
backlog in driver’s license plates that need to be
distributed.114

113 An Act Rationalizing and Strengthening the Policy Regarding Driver’s License by Extending the Validity Period of Driver’s Licenses, and Penalizing
Acts in Violation of its issuance and Application. Amending for those Purposes Section 23 of RA no. 4136, as Amended by Batas Pambansa blg. 398
and EO no. 1011, otherwise known as the Land Transportation and Traffic Code.
114 This was a result of a Commission on Audit (COA) Notice of Disallowance on the PhP3.8 billion procurement of Driver’s License Plates contract
issued in 2015 for allegedly being inconsistent with the procedures of RA no. 9184 or the Procurement Reform Act, and the June 2016 Supreme Court
temporary restraining order (TRO) on the release of around 293,415 pairs of license plates for motor vehicles and 378,222 plates for motorcycles.
On January 23, 2018, the Supreme Court ordered the lifting of the TRO. While the more than 671,000 plates under the TRO have been distributed to
owners as ordered by the Supreme Court, the bulk of the plates under the contract are still under the disallowance. The LTO has to wait for the COA
decision before it can proceed.

To address the backlog in license plates,
we targeted to simplify the process of plate
production by procuring plate making
machines to be operated by locally-employed
personnel, instead of producing them offshore.
On December 1, 2017, we awarded the contract
to a local company in the amount of PhP978.8
million for the production of 775,000 pairs of
motor vehicle plates and 1.7 million motorcycle
plates. However, we deferred the production of
the motorcycle plates pending the passage of
a bill that will require larger-sized motorcycle
plates that will be easy to read from a distance,
which would help curb motorcycle-related
crimes.
On April 24, 2018, we inaugurated our own
Plate Making Plant, which will enable the
government to manufacture vehicle plates in a
manner that is fast and efficient. The Plant is
addressing the backlog of license plates from
July 2016 onwards. The plant houses seven
(7) Manual Embossing Machines, which, at
full production and with two (2) eight-hour
shifts, can produce up to 22,000 plates per
day. These machines have been calibrated and
are operational. An additional Automated
Embossing Machine will be arriving in
New License Plates
Photo Credit: DOTr
T H E P R E SI D E N T ’ S R E P O RT 77
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2016 - 2018
October 2018 and will be made operational by
November 2018.
On July 5, 2018, we started releasing nationwide
the plates for motor vehicles registered from
July 2016 onwards.
• Provided Discounts for Senior Citizens and
PWDs for Online Domestic Airline Ticket
Transactions. Senior citizens and PWDs may
now avail of a 20 percent discount when booking
a domestic flight online, as compared to the
past when discounts were only applied through
face-to-face or over-the -counter transactions.
On July 13, 2017, the Civil Aeronautics Board
(CAB) approved the resolution requiring local
airlines to give a 20 percent discount on tickets
purchased via the carrier’s website or a mobile
application.
• Addressed the Pilferage of Baggage in Airports.
On January 18, 2018, I met with the Clark
International Airport (CRK) and NAIA airport
officials and reminded them to carry out more
decisive actions to put an end on pilferage of
baggages. This is in view of the involvement of
six (6) employees of the MIASCOR Aviation
Services in the baggage pilferage of an OFW
 78 T OWA R D S R E ST O R I N G
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and his companion in December 2017. After

the incident, the MIASCOR compensated the
victims.

Upon my directive, the CRK management

terminated the erring employees, and together
with the NAIA management, has discontinued
the services of MIASCOR and terminated their
contract effective April 21, 2018.

Majority of the good-performing MIASCOR

employees have been absorbed by existing
ground-handling agencies (GHAs) in MIAA
while airlines have signed new agreements with
other GHAs.

To prevent similar events from happening

again in the future, we issued new guidelines
for personnel in charge of baggage handling
such as prohibition of wearing uniforms with
pockets, loose boots and shoes, jewelry, and
the use of cellphones while on duty. Moreover,
we ordered baggage handlers to wear body
cameras and airport officials to produce an
initial 100 cameras, while security companies
were also directed to buy their own.
Services of the PCSO were made faster and more efficient.
Photo Credit: PCSO
and 21 days for chemotherapy cases. This was
not acceptable as every minute counts for people
with life-threatening illness. We addressed this
inefficiency through the following:

• Reestablishment of the signing authorities

ENSURING THE EFFICIENT PROVISION
OF BASIC SOCIAL SERVICES,
BENEFITS, AND ASSISTANCE
PHILIPPINE CHARITY SWEEPSTAKES OFFICE
(PCSO) ASSISTANCE. We have also urged the
PCSO to act on every request for medical and
financial assistance under the Individual Medical
Assistance Program (IMAP)115 more efficiently. In
2014, Guarantee Letters (GL) were released within
four (4) days for requests below PhP100,000.00,
five (5) days for requests above PhP100,000.00,
for GL based on the amount of request;
establishment of the Enrollment System for
Dialysis and Chemotherapy Cases (ESDC),
which utilizes a one-time interview mechanism
and processing of assistance; and extension of
the IMAP work hours;
• Use of the Charity Service Information System
(CSIS), an internet-based module for the
preparation and electronic approval of GLs.
Through this module, the physical presence
of the signing authority is no longer required,

115 The IMAP is the flagship program of the PCSO institutionalized in 1995 to provide timely and responsive financial assistance to individuals with
health-related problems through provision of guarantee letters to health facilities.

expediting the release of the same to patients
with urgent need. GLs are now released within
the day for hospital discharge cases amounting
to PhP200,000.00, three (3) days for regular
requests, such as assistance for chemotherapy,
dialysis, implant, medical devices and
assistive devices, among others, amounting to
PhP200,000.00, and four (4) days for requests
above PhP200,000.00;116 and
• Expansion of the PCSO At Source and Processing
or ASAP Desk to expedite the processing of
requests in partner hospitals making assistance
more timely and responsive. In 2017, the agency
widened the coverage through the approval of
additional 26 applications for partnerships with
various hospitals in NCR and the provinces.
With all these developments, the IMAP assisted
415,465 individuals in 2017, which is 30.2 percent
higher than the 319,091 individuals assisted in
2016.117
PHILHEALTH MEMBERSHIP. We also streamlined
processes in our PhilHealth frontline units.
PhilHealth Express and local health insurance
offices can now process basic frontline services,
such as issuance of PhilHealth Identification
Number, generation of Member Data Record, and
premium collection, within five (5) to 30 minutes.
Registration procedures for Electronic Premium
Remittance System (EPRS) for employers may
now be completed in three (3) working days,
an improvement from five (5) working days
previously. We were also able to streamline
enrollment procedures for members of the
government and private agencies with six (6)
to 200 membership forms from 10 to three (3)
116 PCSO, July 19, 2018.
117 Ibid.
118 PhilHealth, August 21, 2018.
119 Operationalizing in the Executive Branch the People’s Constitutional Right to Information and the State Policies of Full Public Disclosure and
Transparency in the Public Service and Providing Guidelines Therefor.
120 PCOO, July 20, 2018.
T H E P R E SI D E N T ’ S R E P O RT 79
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2016 - 2018
working days. For bulk or complex transactions
with 201 more than 400 membership forms, we
reduced processing time from 10 working days to
only five (5) to 10 working days.118
PAVING THE WAY TO FREEDOM OF
INFORMATION (FOI)
One of my very first acts as President was the signing
of EO no. 2 on July 23, 2016119, implementing the
Freedom of Information (FOI) in the Executive
Branch to fulfill the citizens’ constitutional
right to information. We are revolutionizing
the mechanism by which government discloses
information to the citizens and ensuring that
government agencies respond to citizen concerns
and provide the information they need within 15
to 35 working days.
Two (2) years into its implementation, I am pleased
that 100 percent of national government agencies
(NGAs) have produced, approved, and published
their FOI manuals on their respective websites.
Even agencies outside the Executive Branch have
participated and submitted their own People’s
Manuals, e.g., the Commission on Audit, Office of
the Ombudsman, and Local Water Districts. The
manuals are published in print format to guide
ordinary citizens who do not have internet access,
and in digital format for the public who wish to
request without physically going to a government
office.120
Today, the public is provided with a variety of
means to access information. They can lodge their
FOI request face-to-face through standard paper-
based forms, postal and electronic mail, and
social media platforms, as long as they provide all
necessary information.
 80 T OWA R D S R E ST O R I N G
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We have also developed an online platform FIGURE 21. COMPLIANCE WITH FOI
where the public and government agencies can
facilitate FOI requests, www.foi.gov.ph. From SUBMISSION OF FOI MANUAL
as of May 22, 2018
14 participating agencies in December 2016, the
electronic FOI portal has 283 agencies onboard
as of July 20, 2018. A total of 5,375 online 100%
NGAs
requests for information from the public have
been lodged, of which 1,874 were granted.121 190 out of 190

WAY FORWARD: FURTHER IMPROVING

EFFECTIVE DELIVERY OF PUBLIC 84%
GOCCs
SERVICE 99 out of 118

We shall continue to improve government

services by making it truly customer-friendly.
We will fine-tune our systems that will eventually 89%
SUCs
render a complaint hotline unnecessary by 101 out of 113
taking on the lessons that can help better the
government agencies’ delivery of their respective Non-executive Agencies
services.

However, more still needs to be done to ensure that

the Filipino’s constitutional right to information
is fully realized. The FOI bill remains a priority
legislative agenda under my Administration and
we will continue working with Congress on the 34%
Local Water Districts
passage of this legislation. From here on, we will 172 out of 508
even be more relentless in improving the public’s
awareness of the FOI program and encouraging
Source: PCOO
more Filipinos to exercise their right and to
ask information from the government through
stronger information dissemination, faster
processing of requests, and tougher monitoring
of agency compliance.

From here on, we will even be more relentless in improving

the public’s awareness of the FOI program...

121 Of the total number of requests, 3,973 were considered resolvable. Of the 3,973, 1,398 are pending requests. The remaining 701 were denied. (Source:
PCOO, July 20, 2018)
 TOWARDS UPLIFTING
THE LIVING CONDITIONS
OF THE FILIPINO PEOPLE

Human rights to me means

giving Filipinos, especially
those at the society’s
fringes, a decent and
dignified future through
the social and physical
infrastructures necessary
to better their lives.

President Rodrigo Roa Duterte

State of the Nation Address
July 23, 2018

Photo Credits: PCOO

 82 TT OWA RDS UPLIFTING
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OF THE FILIPINO PEOPLE

Photo Credit: PCOO

FINANCING

6
CHAPTER
HUMAN DEVELOPMENT 122

My Administration has always espoused inclusive growth

where every Filipino has broader access to education,
employment, healthcare and other basic social services.

In 2017, we increased our revenues through efficient tax

monitoring, collection, and enforcement. While we achieved
momentum in providing for the needs of our people, we
still need to generate resources to finance our development
efforts. Thus, we passed the Tax Reform for Acceleration and
Inclusion (TRAIN) law. Its implementation is essential to
fund our Build, Build, Build program; continue the provision

122 DOF, op.cit. and DBM, op.cit.

 T H E P R E SI D E N T ’ S R E P O RT
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2016 - 2018

of free tertiary education; rebuild Marawi Our non-tax revenues also increased in 2017.
City; and implement the health, education, These include collections from the income of
social protection and other programs as I have the Bureau of Treasury (BTr), GOCCs, and other
promised in my Administration’s 0+10-Point non-tax revenues, e.g., Malampaya royalties. In
Socioeconomic Agenda. addition, we collected dividends from GOCCs
and Government Financial Institutions (GFIs),
Towards this end, we have taken steps to which also rose in 2017.126
increase our revenue collection to achieve our
developmental goals. In addition to non-tax revenues, our privatization
of government assets yielded a collection of
PhP831.94 million in 2017, a more than 26 percent
ENHANCING REVENUE COLLECTION increase from PhP 657.62 million in 2016. We
privatized real properties formerly owned by the
Our tax effort123 in 2017 at 14.25 percent was the Al Amanah Islamic Bank and Luzon Aggregates
highest in 20 years. This was mainly due to effective Corporation. We likewise disposed of some of
tax administration by the following agencies: the country’s intangible assets such as shares in

TABLE 26. TAX REVENUES COLLECTED124

(VALUE IN BILLION PHP)
AGENCY 2016 2017 GROWTH (IN PERCENT)

BIR 1,567.21 1,772.32 13.09

BOC 396.37 458.18 15.60
Other Offices 125 16.81 20.17 20.00
TOTAL 1,980.39 2,250.68 13.65
Tax Effort (%) 13.68 14.25
Sources: DOF, BTr

FIGURE 22. NON-TAX REVENUES AND DIVIDENDS

NON-TAX REVENUES DIVIDENDS

( I N BI L L I O N P HP ) ( IN BILLIO N P HP )
221.6 31.2

214.9
3.1% 28.9
8.0%

2 01 6 2 01 7 2 01 6 2 01 7
Sources: DOF, BTr

123 Percent of Tax Revenue to GDP

124 Based on National Government Cash Operations Report published by the Bureau of the Treasury. Tax revenuesare government incomes from
taxation.
125 Other Tax collected from DENR, BFP, BI, LTO, CHED, and NCCA
126 CAAP’s remittance of PhP5.39 billion from PAL’s settlement was a significant contributing factor in the increase in dividend collections in 2017.
 84 TT OWA RDS UPLIFTING
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OF THE FILIPINO PEOPLE
the ASEAN Finance Corporation. Part of the
proceeds also came from rental income for leasing
government properties slated for privatization,
interest income, dividends, and remittances from
the retained fund of the Swiss deposits.
PACKAGE 1A OF THE COMPREHENSIVE TAX REFORM
PROGRAM (CTRP) OR TRAIN LAW (RA NO. 10963).
I applaud Congress for the timely passage of the
TRAIN Law, which has made funds available to
build better roads and bridges, improve health and
education, and strengthen our safety and security.
Some have incorrectly blamed our efforts toward
a fairer tax system for all the price increases in the
past months and some irresponsibly suggest to stop
TRAIN’s implementation. We cannot and should
not. We need this for the sustainable growth that
leaves no Filipino left behind.
The enactment of the TRAIN law in December
2017 was the first time that we passed a tax reform
not because of a financial crisis nor to reduce
the budget deficit, but to reduce poverty and
inequality. The BIR’s collection in the first quarter
of 2018 exceeded its target mainly due to reforms
and better tax compliance.
Some of its key features include:
• Increase of take home pay of 99 percent of
taxpayers from the exemption of the first
TABLE 27. TAX MONITORING AND ENFORCEMENT ACCOMPLISHMENTS
2016
PROGRAM
NO. OF
ESTABLISHMENTS
Oplan Kandado 50
Tax Mapping Operations/
Tax Compliance 186,404
Verification Drive
PhP250,000 annual income of Filipinos from
personal income tax;
• Staggered increase of excise tax on dirty fuel to
help improve the condition of the environment;
• Introduction of a tax on sugar-sweetened
beverages to promote a healthier lifestyle; and
• Introduction and update of taxes on cosmetic
procedures, coal, mining, and tobacco.
TRAIN is also helping poor families and senior
citizens cope with rising prices. We have
distributed unconditional cash transfer grants
to four million people, and we will help six
million more this year. Following the one-peso
discount per liter in gas stations, we have also
started releasing fuel vouchers to public utility
jeeps and other valid franchises. Further, we
have fast-tracked the distribution of NFA rice to
provide affordable rice for all. We are also giving
PhP149.6 billion worth of subsidies to the poor
and vulnerable in 2018. This will be increased to
PhP169 billion in 2019.
INTENSIFIED TAX MONITORING AND
ENFORCEMENT. We accelerated the
implementation of programs to make business
operations and establishments compliant with tax
measures. Under the Oplan Kandado program,
2017
REVENUES COLLECTED NO. OF REVENUES COLLECTED
(IN MILLION PHP) ESTABLISHMENTS (IN MILLION PHP)
141.23 125 285.42
124.98 374,663 430.56

business operations of non-compliant taxpayers
will be suspended, and their establishments
temporarily closed. We have collected PhP285.42
million from 125 establishments in 2017, more
than double the PhP141.23 million collected from
50 establishments in 2016.
Meanwhile, under the Tax Compliance Verification
Drive, the BIR inspects business establishments
across the country to verify their compliance
with registration, invoicing and bookkeeping
requirements provided under existing internal
revenue laws, rules and regulations. We have more
than tripled our collections from non-compliant
establishments in 2017, from PhP124.98 million in
2016 to PhP430.56 million in 2017.
PROVIDING FOR A COMFORTABLE LIFE FOR
FILIPINOS THROUGH TAX REFORM. When I ran
for the Presidency, I promised to do whatever it
takes to give all Filipinos a comfortable life, even if
it meant fighting against powerful interests. I am
committed to a comprehensive tax reform and I
ask Congress to continue the job.
The Package 1B of the CTRP, which consists of the
proposed tax amnesty program, adjustments in the
Motor Vehicle Users Charge, and amendments to
the Bank Secrecy Law, is being discussed in both
houses of Congress.
Package 2 will lower corporate income taxes,
especially for our small businesses. Lower taxes
mean they will have more money to invest and
create jobs. More than 99 percent of our businesses
are MSMEs which employ around 65 percent of
our workers. The enactment of Package 2 is what
stands between today and millions of jobs in the
near future.
We should continue to grant incentives, for a
reasonable amount of time, to those who create
good jobs, especially in the countryside, introduce
innovation and technology, and propel our
industries to the future.
T H E P R E SI D E N T ’ S R E P O RT
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85
2016 - 2018
When you take risks to do good things for the
country, the government will support you. When
you run a small business without incentives, the
government should not charge you the highest tax
rate in the ASEAN region. We are asking some big
businesses to share the hundreds of billions they
have received in special tax incentives – estimated
at more than PhP300 billion per year – so that
we can give a better deal to the Aling Nena’s and
Mang Pedro’s who can grow their livelihood and
hire more workers.
The passage of the CTRP Package 2 shall
complement the recently enacted RA no. 11032
or the Ease of Doing Business and Efficient
Government Service Delivery Act of 2018. The
House version of Package 2 was filed on March 21,
2018 as House Bill (HB) no. 7458 and is currently
being deliberated in the House of Representatives.
We shall also submit to Congress other packages,
as follows:
• Package 2+, which proposes to increase excise
tax on tobacco and alcohol products, increase
government share from mining, and remove the
value-added tax exemption on domestic coal
and casinos;
• Package 3, which aims to rationalize property
valuation; and
• Package 4, which proposes to rationalize capital
income taxation.
I hope to sign Package 2 before the year ends.
I urge Congress to pass it in a form and substance
that satisfy our goals and serve the interests of the
many, not just the wealthy few.
By the end of July 2018, all five packages of my tax
reform would have been submitted to Congress,
which include the mining, alcohol, and tobacco
tax increase, reform in property valuation, reform
 86 TT OWA RDS UPLIFTING
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OF THE FILIPINO PEOPLE

in capital income and financial taxes, and an infrastructure development, education, health,
amnesty program. and social protection.

I urge Congress to take them seriously and pass
them in succession, for there is no chance that
we can deliver our promises without an equitable
tax system.
ENHANCING EFFICIENCY IN THE USE
OF RESOURCES127
TIMELY AND EFFECTIVE ALLOCATION OF FUNDS.
I signed, together with the TRAIN law, the
Fiscal Year (FY) 2018 General Appropriations
Act (GAA) to ensure that funds are properly
allocated to our priority programs such as
The National Budget in FY 2018 amounted to
PhP3.767 trillion, with social and economic affairs
having the biggest share of the budget. Similar to
the FY 2017 budget, we gave the Education sector
the biggest slice of our budget followed by the
DPWH and the DILG (see Figure 23).
More than PhP2.75 trillion or about 73.1 percent
of the FY 2018 National Budget was allocated
directly to the regions to ensure that growth will
be felt especially in the rural areas. This is 37.7
percent higher than the PhP2.0 trillion allocation
for 2017. Mindanao’s share significantly increased

FIGURE 23. SHARE OF SECTORS IN THE TOTAL 2016, 2017, AND 2018 BUDGET
(VALUE IN BILLION PHP)
419.3
1,119.8 834
2016
Debt Burden
Social Services Economic Services

PhP 3,002

498 130.7
General Public Services Defense

1,351.5 922.9 351.6

2017
Social Services Economic Services Debt Burden

PhP 3,350

575.4 148.7
General Public Services Defense

1,425.7 1,153.6 370.8

2018 Social Services Economic Services Debt Burden

PhP 3,767

655.4 161.5
Source: DBM

General Public Services Defense

127 DBM, op.cit.
 T H E P R E SI D E N T ’ S R E P O RT
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2016 - 2018

FIGURE 24. INCREASE IN ANNUAL SHARE OF THE NATIONAL BUDGET,

PER ISLAND GROUP

39.04%
16.82% 47.66%
1,744.35
27.27%
1,254.60

1,074
10.19% 4.94%
IN PHP BILLION

615.02
418.35 416.5
328.7 396.9
298.3

2 01 6 2 01 7 2 01 8 2 01 6 2 01 7 2 01 8 2 01 6 2 01 7 2018
L U ZON V IS AYAS MINDAN AO

Source: DBM

from a 4.94 percent growth in 2017, to 47.66
percent growth in 2018 (see Figure 24).
INCREASED GOVERNMENT SPENDING. We
adopted an expansionary policy to allow more
spending for infrastructure and social services,
enabling disbursements to grow from 17.6
percent of GDP in 2016 to 17.8 percent in 2017.
By 2018, we expect disbursements to grow to
18.9 percent of GDP.
For the first five (5) months of 2018, government
spending amounted to PhP1.33 trillion, PhP265
billion or 25 percent more than the disbursements
recorded in the same period last year. On the
status of Allotment Releases, 88.5 percent or
PhP3.33 trillion of the PhP3.767 trillion National
Budget has been released as of May 2018. This
is an improvement from our performance in the
same period in 2017, wherein only 82.1 percent
of the PhP3.350 trillion budget was released.
The following are some of the measures being
implemented to further accelerate government
spending for priority programs and projects, and
promote transparency and accountability in the
use of funds:
• One-year Validity of Appropriations. For the FY
2018 budget, Congress approved the one-year
validity of appropriations. This means that
all funds available for release and obligations
incurred are valid only within the fiscal year.
This will urge agencies to complete their
projects and activities within the fiscal year and
improve their planning and risk management.
• Program Expenditure Classification System
(PREXC). In 2018, we implemented the PREXC
system, which provides better performance
 88 TT OWA RDS UPLIFTING
H E L I V I N G C O N D I T IO N S

OF THE FILIPINO PEOPLE

information and costs at the program level
instead of the previous agency level, allowing
for efficiency and effectiveness of agency
operations and its budget utilization. This
gives a more concrete picture of the short- to
medium-term benefits of agency programs and
promotes greater accountability for each peso
spent on programs. Through the PREXC, our
citizens and the civil society organizations can
better monitor the performance of government
programs and make evidence-based evaluation
reports.
of sample projects, including the DENR’s
National Greening Program, the National
Irrigation Administration’s (NIA) National/
Communal Irrigation Systems, and the DOH’s
Health Facilities Enhancement Program. With
various technologies on data acquisition used
in DIME, we are able to collate information on
the implementation and status of the selected
programs and projects, focusing on those
with sizable allocation, which would serve as
basis in assessing the viability of continuing or
discontinuing the funding of a project.

• Project DIME (Digital Imaging for Monitoring

and Evaluation). In March 2018, we launched
Project DIME, which aims to monitor
selected high value government projects by
comparing fund utilization vis-à-vis physical
accomplishment, through the use of various
Digital Data Imaging Technologies. In 2017, the
DBM and DOST began an initial monitoring

TA B L E 2 8. SAMPLE PROJECTS MONITORED BY DIME

BUREAU PROGRAMS/PROJECTS

National Greening Program

DEPARTMENT OF
ENVIRONMENT AND
NATURAL RESOURCES
(DENR)

National/Communal Irrigation Systems

NATIONAL
IRRIGATION
ADMINISTRATION
(NIA)

Source: DBM
Photo Credit: DENR and NIA

WAY FORWARD: MODERNIZING
GOVERNMENT PLANNING AND
BUDGETING
We are pushing for the enactment of the Budget
Modernization Bill128 to further ensure sound
and efficient government spending. This was
approved on March 20, 2018 by the House of
Representatives. Once the Bill is approved by
the Senate and passed into law, government
spending and delivery of services to the people
will improve through the institutionalization
of the shift from multi-year obligation-based
budgeting to annual cash-based budgeting.
Annual cash-based budgeting requires agencies
TABLE 29. COMPARISON OF THE OBLIGATION-BASED AND ANNUAL CASH-BASED
BUDGETING
OBLIGATION-BASED
BUDGETING
• Contracts awarded within the • Contracts intended to be implemented
fiscal year can be delivered even
after the end of the year.
• Payment is done within and
beyond the end of the fiscal year.
Source : DBM
128 Also known as the Budget Reform Bill.
T H E P R E SI D E N T ’ S R E P O RT
TO THE PEOPLE
89
2016 - 2018
to intensify their annual planning and budgeting
system, which will in turn lead to more effective
and efficient program implementation.
In addition, its passage will further enhance fiscal
management by adopting an integrated financial
management information system, which will
serve as a single portal for all financial transactions
of the government. This will provide real-time
information on the country’s budget and finances.
With the Budget Modernization measure in the
works, we shall continue moving toward our
goal of achieving a transparent and participatory
budget for the Filipino people.
ANNUAL CASH-BASED
BUDGETING
for the fiscal year should be fully
delivered, inspected, and accepted by
the end of the fiscal year.
• Payment is done within the fiscal
year up to a three-month Extended
Payment Period (EPP) after the fiscal
year for goods and services accepted
by December 31 of the fiscal year.
 90 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE

Photo Credit: DepEd

PROVIDING FOR THE

PEOPLE’S BASIC NEEDS
7
CHAPTER

Our people are our greatest assets and we shall continue

to invest in their future. We are working harder to achieve
our vision of making government services accessible and
responsive in order to meet our people’s basic needs. We
have rolled out programs and initiatives to make health
care universal; quality and relevant education and trainings
accessible; clean and potable water; decent and affordable
housing available; households’ energized; employment
provided; and sufficient food available in every table
especially for the poor, marginalized, and vulnerable.

PROVISION OF CLEAN WATER,
DECENT HOUSING, AND SUSTAINABLE
ENERGY
ENSURING THE PROVISION OF POTABLE WATER
BY IMPROVING WATER SUPPLY. We continue to
enhance economic opportunities to the Filipino
people by providing them clean and potable
water. Below are some of the accomplishments to
ensure safe supply of water:
• From July 2016 to June 2018, we have provided
PhP818 million in financial assistance for the
improvement of water supply in 186 Water
Districts (WDs);
• The coverage of existing water supply systems
of all WDs expanded by an additional 448,539
households or about 2 million additional
persons served from July 2016 to June 2018; and
The Bulacan Bulk Water Supply Project
Photo Credit: MWSS
T H E P R E SI D E N T ’ S R E P O RT 91
TO THE PEOPLE
2016 - 2018
• Of the estimated 105 million population, 22
million persons or 21 percent were provided
direct access to safe water supply as of
June 2018. We target to reach 43 percent
population coverage by 2022.
• In 2017, the Manila Water and Maynilad
installed 83,071 new domestic water service
connections in Metro Manila, which
exceeded the 76,752 new domestic water
service connections target for 2017, making
potable water more accessible to the people
in the metropolis.
• To ensure that cleaner water is discharged
to surface waters, rivers, and tributaries,
the concessionaires installed 190,792 new
domestic sewer connections in 2017.
 92 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

We are also investing in ongoing and new

projects to ensure potable water supply for
future generations. These include the following:

• Bulacan Bulk Water Supply Project (BBWSP).

The Bulacan Bulk Water Supply Project will increase access of households in
Bulacan to safe drinking water, reducing incidence of water-borne diseases.
Photo Credit: MWSS
We are constructing water treatment facilities
and a conveyance system to supply treated
bulk water to the entire province of Bulacan
through its WDs. As of June 4, 2018, nearly 80
percent of the construction works of the water
treatment facilities has been accomplished,
and 64.52 percent of the conveyance system
has been done. The BBWSP will start its
operations in October 2018, covering Balagtas,
Bocaue, Marilao, Meycauayan, Obando, and
San Jose del Monte. In April 2019, it will
cover Bulacan, Calumpit, Guiginto, Malolos
(including portions of Paombong), Plaridel,
and Sta. Maria. It will be fully completed by
2023;129

• New Centennial Water Source-Kaliwa Dam

Project. The project aims to ensure water
security and increase raw water supply
to meet future water demand and reduce
The site of the dam and the conveyance tunnel for the dependence on the Angat Dam. It will
New Centennial Water Source-Kaliwa Dam Project. involve the construction of a dam with a
Photo Credit: MWSS
supply capacity of 600 million liters per day
(MLD) and a 27.70-km raw water conveyance
tunnel with a design capacity of 2,400 MLD.
The dam is targeted to benefit about 500,000
households upon its completion on 2023; and

• Angat Water Transmission Project (AWTIP).

We are constructing a 6.4-km tunnel that can
withstand and guarantee water supply even
in the event of a major seismic activity, e.g.,
Magnitude 7.2 earthquake in the West Valley
Fault. As of June 2018, 40 percent of the
physical construction has been accomplished.
Part of the 6.4km AWTIP Tunnel
Photo Credit: MWSS

129 This will cover Angat, Baliwag, Bustos, Doña Remedios Trinidad, Hagonoy, Norzagaray, Pulilan, San Ildefonso, San Miguel, and San Rafael.
 T H E P R E SI D E N T ’ S R E P O RT 93
TO THE PEOPLE
2016 - 2018

PROVIDING DECENT HOUSING.130 Shelter is a

basic human necessity and owning a house is
a dream for all Filipino families. Under the
Building Adequate, Livable, Affordable and
Inclusive Filipino Communities or the BALAI
Filipino program, we have provided Filipinos,
particularly the homeless and underprivileged,
improved access to decent, affordable, and
climate-resilient housing through the following:
• Provision of housing for the poor. From
July 2016 to February 2018, we provided
399,644 low-income Filipino families with
houses, representing 26.64 percent of the
Administration’s target of 1.5 million Filipino
families provided with decent housing by
end-2022;
• Developent of Affordable Home Financing
Schemes. We have undertaken adjustments to
our socialized housing programs to improve
its affordability and suit the needs of the poor
and marginalized; (see Table 30)

TABLE 30. ADJUSTMENTS IN THE FINANCING SCHEMES OF SOCIALIZED HOUSING PROGRAMS

PA RT ICU L A R S PRE V I OU S C U RRENT

Interest rate for socialized

housing under Affordable
Housing Program for minimum
wage earners
4.5% 3%
Interest rate for horizontal
socialized or subdivision
housing units 6% 3%
Interest rate on vertical
socialized for condominium
housing units 4.5% 3%
NATIONAL HOUSING Repayment period for the
AUTHORITY affordable housing loans under
the Community Mortgage 25 years 30 years
Program (CMP)

Maximum loanable
amount for socialized
housing
PhP250,000 PhP400,000
Source: HUDCC

130 HUDCC, July 11, 2018.

 94 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

• Improvement of the Specifications for Socialized
Housing. The small living space or area, i.e.,
18 sqm, of existing socialized housing units
has been a concern among the beneficiaries
and has resulted in very low acceptance of the
socialized housing units. Thus, we increased
the minimum floor area per unit of socialized
horizontal or subdivision housing units and
vertical or condominium housing units, as
follows:

TABLE 31. SPECIFICATIONS FOR SOCIALIZED HOUSING UNITS

HORIZONTAL VERTICAL
PREVIOUS CURRENT FLOOR AREA PREVIOUS CURRENT FLOOR AREA
FLOOR AREA FLOOR AREA Metro Manila* 22 sqm
22 sqm with a loft of at least 50% PRICE CEILING: PhP700,000.00
18 sqm. of the base structure, or 24 sqm 18 sqm.
PRICE CEILING: PhP480,000.00 Metro Manila 24 sqm
PRICE CEILING: PhP750,000.00
24 sqm with a loft of at least 50%
of the base structure, or 28 sqm Other Areas 22 sqm
PRICE CEILING: PhP530,000.00 PRICE CEILING: PhP600,000.00
28 sqm with a loft of at least 50% Other Areas 24 sqm
of the base structure, or 32 sqm PRICE CEILING: PhP650,000.00
PRICE CEILING: PhP580,000.00

*Includes San Jose Del Monte, Bulacan; Cainta and Antipolo, Rizal; San Pedro City, Laguna; Carmona and the cities of Imus and Bacoor, Cavite
Source: HUDCC

• Enhancement of the AFP/PNP Housing We shall construct 9,077 housing units

Program. We responded to the housing using the enhanced specifications in
needs of low-salaried members of the AFP several areas131 nationwide. As of May
and PNP by providing them with houses 2018, 1,640 units are under various stages
that conform to their needs. In May 2017, we of construction, 2,000 are under land
launched the new and improved AFP/PNP development, and 5,437 are under survey
housing designs and modalities in Davao City. works and awaiting groundbreaking.

TABLE 32. COMPARATIVE SPECIFICATIONS OF

THE OLD AND NEW AFP/PNP HOUSING PROGRAM

PREVIOUS SPECIFICATIONS NEW SPECIFICATIONS

• 36 sqm lot area and 22 sqm floor area • 80 sqm lot area and 44 sqm floor area
• 40 sqm lot area and 18 sqm floor area • 150 sqm lot area and 60 sqm floor area
(optional construction of loft within the unit) (in San Miguel, Bulacan)
• 40 sqm lot area and 20 sqm floor area (optional • 80 sqm lot area and 60 sqm floor area
construction of loft within the unit) (For other areas)
• 42 sqm and 36 sqm (For Low-Rise Buildings)

Source: HUDCC

131 Bulacan, Tarlac, Baguio, La Union, Negros Occidental, Zamboanga del Sur, Lanao del Norte, Davao Oriental, Davao del Norte, and Davao del Sur
 T H E P R E SI D E N T ’ S R E P O RT 95
TO THE PEOPLE
2016 - 2018

Top left photo: AFP/PNP Housing in Scout Rangerville, Bulacan; Top right photo: Perspective for the housing units in Christine Villas, Lanao del Norte;
Bottom left photo: Perspective for the housing units in Madayaw Residences, Davao City; Bottom right photo: Perspective for the housing units in Vista
Alegre Homes, Negros Occidental
Photo Credit: NHA

I also found that the occupancy rate of
housing units constructed using the old
specifications under the program is very
low. As of end-July 2017, only 14 percent
or 8,837 units out of the 63,836 completed
housing units were occupied. Given this, I
approved Joint Resolution no. 02, s. 2018 of
Congress132, which authorized the NHA to
redistribute the unoccupied housing units
to other beneficiaries including families of
former rebels and LGU employees.
PURSUING INSTITUTIONAL REFORMS IN THE
HOUSING SECTOR. To consolidate and improve
our efforts to provide every Filipino with decent
and affordable shelter, we need a dedicated
department, which shall be the sole and main
planning and policy making, regulatory, program
coordination, and performance monitoring
entity for all housing, human settlement, and
urban development concerns. The department
shall ensure alignment of the policies, programs,
and projects of all its attached agencies towards
achieving this objective.

132 As the funding for the AFP/PNP Housing Program was specifically provided under the General Appropriations Act, redistribution by the NHA of
unoccupied housing units to other beneficiaries can only be done through a law. A Joint Resolution of Congress has the force and effect of a law.
 96 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

ENSURING ADEQUATE AND RELIABLE FUEL AND
POWER. Our energy supply is both stable and
reliable. However, much needs to be done to cater
to the energy requirements of the underserved
and unserved areas of the country to promote
inclusive growth. Hence, we are undertaking the
following initiatives:
• Household Electrification. To expand electricity
coverage to unserved households in the country,
we energized 20.94133 million households
out of the potential 23.70 million unserved
households134 as of December 2017. In 2016, there
were 19.99 million households with electricity
out of the potential 22.31 million households.135

TABLE 33. HOUSEHOLD ELECTRIFICATION LEVEL BY REGION, AS OF DECEMBER 2017*

REGION TOTAL HOUSEHOLDS SERVED HOUSEHOLDS UNSERVED HOUSEHOLDS ELECTRIFICATION LEVEL (%)
CAR 409,100 365,999 43,101 89.5
I 1,179,133 1,141,887 37,246 96.8
II 795,800 762,314 33,486 95.8
III 2,793,456 2,748,334 45,122 98.4
IV-A 3,718,758 3,572,657 146,101 96.1
IV-B 708,077 566,065 142,012 79.9
V 1,197,558 957,954 239,604 80.0
NCR 3,233,605 3,189,357 44,248 98.6
LUZON 14,035,487 13,304,567 730,920 94.8
VI 1,019,375 908,244 111,131 89.1
VII 1,426,286 1,391,344 34,942 97.6
VIII 1,003,543 831,235 172,308 82.8
NIR 136
1,016,400 806,494 209,906 79.3
VISAYAS 4,465,604 3,937,317 528,287 88.2
IX 754,300 505,444 248,856 67.0
X 1,004,722 927,878 76,844 92.4
XI 1,177,596 803,588 374,008 68.2
XII 1,026,019 672,999 353,020 65.6
CARAGA 633,700 615,515 18,185 97.1
ARMM 618,600 169,190 449,410 27.4
MINDANAO 5,214,937 3,694,614 1,520,323 70.8
PHILIPPINES 23,716,028 20,936,498 2,779,530 88.3
* Initial estimates only
* Based on cumulative figures reported by the distribution utilities since the inception of the Expanded Rural Electrification Program in 2003
Source: DOE

133 Figures have been updated using the Distribution Development Plan of the Distribution Utilities, which is more updated than the Census of Population.
134 Based on the Distribution Development Plan of the Distribution Utilities
135 Based on 2010 Census of Population.
136 The region was dissolved in August 2017 with the issuance of EO no. 183. Negros Occidental and the City of Bacolod were placed under Region VI while
Negros Oriental under Region VII.
 T H E P R E SI D E N T ’ S R E P O RT 97
TO THE PEOPLE
2016 - 2018

HOUSEHOLD
ELECTRIFICATION R EG I O N I

LEVEL BY
ISLAND GROUP CA R

R EG I O N I I
As of December 2017*

L UZO N
PHI LI PPINES 94.8%
88.3 %
R EG I O N I I I
ELECTRIFICATION
LEVEL
NCR
R EG I O N I V-A
ELECTRIFICATION
LEVEL

R EG I O N V
R EG I O N I V-B

VISAYAS
88.2
R EG ION VIII
%
ELECTRIFICATION R EG I O N V I
LEVEL

R EG I O N VI I

CA R AGA

MI NDANAO R EG I O N X

70.8%
ELECTRIFICATION
R EG I O N I X R EG ION X I

LEVEL
ARMM

R EG I O N X I I
 98 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

• Increased Power Generation.137 Our installed138 end-2016 to 20,515 MW as of end-2017 (see

generating capacity has increased from 21,423
megawatts (MW) in 2016 to 22,728139 MW in
2017, enough to meet the 13,789 MW demand
in 2017. Meanwhile, our dependable140 capacity
continues to increase from 19,097 MW as of
Table 34). Moreover, 2,665 MW of newly
operational power generation capacities were
delivered to the grid in 2016. In 2017 alone, 19
power plants went into commercial operation,
adding 1,418 MW to the grid.

TABLE 34. PHILIPPINES’ DEPENDABLE CAPACITY

LUZON VISAYAS MINDANAO

2015 2015 2 01 5

12,179
MEGAWATTS
2,228
MEGAWATTS
2,025
MEGAWATTS

2016 2016 2 01 6

13,600
MEGAWATTS
2,813
MEGAWATTS
2,684
MEGAWATTS

2017 2017 2 01 7

14,430
MEGAWATTS
3,002
MEGAWATTS
3,083
MEGAWATTS

TOTAL DEPENDABLE 2015 2 01 6 2 01 7

CAPACITY PER YEAR
(IN MW) 16,432 19,097 20,515
Source: DOE

Coal remains to be the primary energy source for TABLE 35. ELECTRICITY GENERATION
electricity generation, accounting for 50 percent MIX (PERCENT SHARE)
of the electricity generation mix. Coal-fired power Coal Oil-Based Natural Gas
plants remain the most stable and cheapest baseload.
2 01 6 2 01 7 2 01 6 2 01 7 2 01 6 2 01 7
However, we recognize the impact of coal-fired and
diesel-fired power plants on our environment. 48% 50% 6% 4% 22% 22%
Thus, we continue to promote and support the
Others
development of renewable energy sources to supply Geothermal Hydro (e.g., biomass, solar, wind)

our electricity requirements. Renewable energy, 2 01 6 2 01 7 2 01 6 2 01 7 2 01 6 2 01 7

e.g., geothermal, hydro, solar, wind and biomass,
accounted for 24 percent of electricity generation.
12% 11% 9% 10% 3% 3%
(See Table 35) Source: DOE 2017 Power Demand and Supply Highlights

137 DOE, July 22, 2018.

138 This refers to the production capacity of a power plant based either on its rated capacity or actual (practically predetermined) capacity.
139 Includes capacity from off-grid generators
140 This refers to the reliable capacity of a power plant that depends upon the available energy, the demand for that energy, the capability of the system
to deliver that energy at a given moment, and the facilities available to handle increased capacity should the need arise.
 T H E P R E SI D E N T ’ S R E P O RT 99
TO THE PEOPLE
2016 - 2018

We continue to line up power projects In addition to the 92 power

nationwide to ensure adequate energy supply in projects, we have awarded
the country. To date, there are 92 power projects 227 Renewable Energy (RE)
in Luzon, Visayas, and Mindanao, with a total service contracts from
installed capacity of 8,618 MW targeted to start June 30, 2016 to March 2018,
commercial operation from 2018 to 2025 (see with a potential capacity of
Table 36). This is enough to meet the expected 9,840.93 MW.
increase in peak demand of 7,595 MW by 2025.

TABLE 36. COMMITTED141 POWER TABLE 37. RE PROJECTS AWARDED,

PROJECTS IN THE PHILIPPINES, JUNE 2016 TO MARCH 2018
2018-2025, AS OF JUNE 2018
SOLAR
LUZON

46
104
PROJECTS
3,722.52
POTENTIAL CAPACITY VALUE IN MW
PROJECTS
VISAYAS
6,511 18 HYDROPOWER

5,480.72
INSTALLED

89
CAPACITY (IN MW) PROJECTS

775 PROJECTS POTENTIAL CAPACITY VALUE IN MW

INSTALLED
CAPACITY (IN MW)

BIOMASS

18
PROJECTS
186.69
POTENTIAL CAPACITY VALUE IN MW

WIND
MINDANAO

28
13
PROJECTS
371.00
POTENTIAL CAPACITY VALUE IN MW
PROJECTS

1,332 GEOTHERMAL

80.00
INSTALLED
CAPACITY (IN MW)
3
PROJECTS POTENTIAL CAPACITY VALUE IN MW
TOTAL NUMBER TOTAL INSTALLED
OF PROJECTS CAPACITY (IN MW)

92 8,618 227
TOTAL NUMBER OF PROJECTS
9,840.93
TOTAL POTENTIAL CAPACITY

Source: DOE Source: DOE

141 Those that have secured financial closing and/or started the construction of their project.
 100 T OWA R D S UPLIFTING
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Photo Credit: DOE

• Empowering Energy Consumers. To empower

our consumers to use energy wisely and
protect them from disasters and other adverse
situations, we have undertaken the following:

`` Adopted an Energy Resiliency Policy to

strengthen the capacity, promote disaster
preparedness, and improve response
mechanisms of the energy sector. It
provides strategic interventions such
as the strengthening of existing energy
infrastructure facilities, improvement of
operational and maintenance practices,
restoration of damaged infrastructures, and
the development of resiliency standards for
the construction of future energy facilities.

Photo Credit: DOE


`` Promulgated revised rules and regulations
governing the business of retailing liquid
fuels to address the safety and quality
concerns. We introduced the Technology-
Solution Retail Outlet that uses emerging
technologies and materials manufactured
in accordance with the standards of product
safety certifying bodies such as the United
Laboratories, other equivalent Nationally
Recognized Testing Laboratories, and the
Conformitè Europèene (CE).
`` Managed the Impact of the TRAIN Law
Implementation. We implemented initiatives
to mitigate the adverse impact of the Tax
Reform Law, as follows:
ƒƒ Retention of Exempt Status for Certain
Vehicles. Before the implementation of the
TRAIN Law, buses, trucks, cargo vans,
jeepneys/jeepney substitutes, single-cab
chassis, special purpose vehicles,142 and
automobiles used exclusively within the
Freeport zone were exempt from excise
tax. The TRAIN Law retained the exempt
status of these vehicles and included purely
electric vehicles and pickup trucks in the list
of exempted automobiles. The TRAIN Law
also introduced a reduced excise tax rate or
a 50 percent discount for hybrid vehicles.143
ƒƒ Provision of Timely Advisories. We
provided timely advisories and undertook
monitoring, random inspections, data
gathering, review of inventory levels, and
issuance of show-cause orders to retailers
who raised prices before January 15,
2018. These regulating activities helped
save consumers around PhP2.64 billion
142 Motor vehicles designed for specific applications such as cement mixer, fire truck, boom truck, ambulance and/or medical unit, and off-road
vehicles for heavy industries (not for recreational activities)
143 Refer to motor vehicles powered by electric energy (with or without provision for off-vehicle charging) in combination with gasoline, diesel or any
other motive power.
144 DOTr, July 20, 2018.
145 Administrative Order no. 110, s. 2004, Directing the Institutionalization of a Government Energy Management Program (GEMP)
T H E P R E SI D E N T ’ S R E P O RT 101
TO THE PEOPLE
2016 - 2018
for gasoline, diesel, and kerosene and
PhP58.4 million for LPG. We also directed
all distribution utilities to require their
power suppliers to explain any additional
charges that may arise as a result of the
TRAIN Law’s implementation.
ƒƒ Provision of Fuel Discounts and Subsidies.
A Memorandum of Agreement among
the DOE, Petron, Shell, and Phoenix
was signed in March 2018 to provide fuel
discounts of PhP1.00/liter on liquid fuels,
among others, to PUV drivers. This will
help avert transport fare increases.
We have started distributing Pantawid
Pasada Cards to legitimate Public Utility
Jeepney (PUJ) franchise holders in July
2018. Beneficiaries received their cards
containing PhP5,000 as fuel subsidy.144
WORLD ENERGY TRILEMMA INDEX (WETI)
For the third consecutive year, we ranked first in
the energy environmental sustainability dimension
of the World Energy Council’s (WEC) WETI
2017 for having the best energy environmental
sustainability among 125 countries.
This is a recognition of our advocacy on energy
efficiency and energy conservation as a way of
life for all Filipinos as we continued to implement
the Government Energy Management Program.145
Under the GEMP, government agencies are
required to adopt and implement energy efficiency
and conservation programs, e.g., utilizing
efficient lighting systems, turning off lights during
breaks, to reduce monthly electricity and fuel
consumption by at least 10 percent.
 102 T OWA R D S UPLIFTING
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ENSURING STABLE AND AVAILABLE POWER. We
shall implement the following:
• Wholesale Electricity Spot Market (WESM). To
promote transparency in electricity pricing,
provide an avenue for competition among power
providers, and reduce electricity cost, we launched
the WESM146 in Mindanao in June 2017.
WESM will facilitate a transparent electricity
market through which Mindanao power
generators will have an avenue to trade un-
contracted power supply capacities. This will
provide consumers more sources of electricity
to choose from, while increasing their
opportunities of lower-priced energy.
Currently undergoing trial operations, its
commercial operation shall commence upon
compliance with regulatory and infrastructure
requirements and once readiness of
participating stakeholders has been achieved.
After more than 11 years, we finally made
an important milestone in our transition
towards an independent market operator
as we relinquished our chairmanship of the
Philippine Electricity Market (PEM) Board of
the Philippine Electricity Market Corporation
(PEMC). The PEMC, which has been the
market operator of the WESM, is now in its
final stages of transition towards becoming an
IMO. In line with this development, the newly
incorporated Independent Electricity Market
Operator of the Philippines (IEMOP) shall
assume the trading, registration, billing and
settlement related functions of the WESM147;
• One Grid PH. To fully realize the One Grid
Philippines vision by 2020, we shall pursue the
Visayas-Mindanao Interconnection Project to
146 A centralized venue for trading electricity as a commodity.
147 The DOE issued Circular No. DC2018-01-002, which is pursuant to Section 20 of RA 9136 or the Electric Industry Reform Act of 2001 and to attain
the objectives of the WESM to establish a competitive, efficient, transparent and reliable market where a level playing field exists and prices are
governed by market forces.
allow power generating facilities in Mindanao
to sell power to Visayas and Luzon, and vice-
versa. The Energy Regulatory Commission
(ERC) has granted in 2017 provisional
authority to the National Grid Corporation
of the Philippines (NGCP) to implement the
project by using the Cebu-Zamboanga route.
Once fully operational, the Philippines’ unified
power grid will help mitigate power shortages
and ensure power reliability among the three
(3) major island groups;
• Developing LNG. We issued the Philippine
Downstream Natural Gas Regulations
(PDNGR) to spur investments and develop the
Liquefied Natural Gas (LNG) infrastructure
in anticipation of Malampaya depletion in
2024. The PDNGR provides the framework
for the development of the LNG value
chain. Anticipated under the PDNGR are
integrated LNG projects that will cover LNG
supply, storage units, re-gasification plants,
distribution facilities, and a modular mid-size
power plant facility; and
• Streamlining Regulatory Procedures for Energy
Projects. We issued EO no. 30, s. 2017, which
created the Energy Investment Coordinating
Council (EICC) to streamline the regulatory
procedures affecting energy projects. Through
this EO, the approval of energy projects shall be
expedited by reducing the five-year approval
process to a maximum of three (3) years. By
2022, approval of energy projects should
be expedited through a 30-day time-bound
permitting process. The EICC has issued
a Certificate of Energy Project of National
Significance for the Mindanao-Visayas
Interconnection Project. This will pave the way
for expediting the permitting and licensing
requirements for the project.
 T H E P R E SI D E N T ’ S R E P O RT 103
TO THE PEOPLE
2016 - 2018

development of learners. To this end, from July

2016 to June 2018, we constructed various basic
education facilities, including 22,133 classrooms
and 1,309 technical vocational laboratories, and
hired 114,019 teachers.

These efforts have resulted in improved teacher

and classroom to learner ratios:

TABLE 38. TEACHER AND

CLASSROOM TO LEARNER RATIOS

TEACHER CLASSROOM
TO LEARNER RATIO TO LEARNER RATIO

ELEMENTARY ELEMENTARY
2 01 6 2 01 7 2 01 6 2017

1:32 1:31 1:35 1:33

The government hired 114,019 teachers from July 2016 to June 2018. SECONDARY SECONDARY
Photo Credit: DepEd
2 01 6 2 01 7 2 01 6 2017

1:26 1:25 1:43 1:36

PROMOTING QUALITY AND RELEVANT Source: DepEd
EDUCATION AND TRAINING FOR ALL

We are committed to make quality education

and training accessible to all Filipinos. Education
and training will equip our people with relevant Education and
skills and knowledge that will empower them training will equip our
to not only attain their personal goals, but also people with relevant
contribute to national development. skills and knowledge
that will empower
PROVIDING A CONDUCIVE LEARNING them to not only
ENVIRONMENT AND MAKING BASIC EDUCATION attain their personal
INCLUSIVE.148 Through the DepEd, we continue goals, but also
to ensure the equitable allocation of crucial contribute to national
basic education resources with the end goal of development.
attaining an environment that will support the

148 DepEd, July 16, 2018.

 104 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE

We sustain the provision of basic education resources to help create a conducive learning environment.
Photo Credit: DepEd

Our continued investments in basic education,

including the sustained implementation of the
K to 12 Basic Education Program, contributed
to the high interest of Junior High School (JHS)
completers to pursue Senior High School (SHS).
This can be seen in the transition rate of 93 percent
from Grade 10 to Grade 11 since the start of SHS
implementation in School Year (SY) 2016-2017.
Seat and Textbook
to Learner Ratio Our gains in SHS is just one of the outcomes of
We have also completed the our continuing efforts to make basic education
delivery of 41,668 sets of school inclusive and responsive to the country’s needs
seats and printed and delivered and aspirations. This year, our first batch of more
136.29 million textbooks and than 1.2 million SHS learners have graduated.
instructional materials. While SHS graduates who opt to immediately seek
we have achieved an aggregate employment have better prospects than our
of 1:1 ratio at the national previous high school graduates due to work
average on these areas, we
immersion, which is a key feature of the K to 12
are continuously addressing
imbalances in certain schools. curriculum. SHS graduates had the opportunity
to obtain workplace exposure in establishments
or institutions related to their tracks and

specializations. In addition, SHS graduates
who opted the technical-vocational-livelihood
track and acquired national certification from
the TESDA-accredited assessment have better
employment opportunities.
In pursuit of our goal to reduce inequality, we
improved the access of vulnerable Filipinos
to quality education through the DepEd’s
Alternative Learning System (ALS) program,
which provided non-formal education to
641,584 out-of-school youth in 2017. We are
further improving the program by piloting the
ALS-Education and Skills Training Program
(ALS-EST) that systematically integrates skills
training with academic instruction.
We are also complementing these by awarding
subsidies to qualified grantees to enroll in private
JHS and SHS. For SY 2017-2018, we provided
subsidies to 977,318 JHS grantees and to 1.29
million SHS grantees through the Education
Service Contracting and SHS Voucher Programs.
REALIZING UNIVERSAL ACCESS TO QUALITY
TERTIARY EDUCATION.149 Further emphasizing
the inalienable right of every Juana and Juan dela
Cruz to gain access to quality education, I have
signed into law the Universal Access to Quality
Tertiary Education Act or RA no. 10931 on
August 3, 2017. The law empowers all qualified
Filipinos to have access to free quality higher
education and technical-vocational education
and training (TVET), and opportunities for
tertiary education subsidy and student loan
programs. With the signing of its Implementing
Rules and Regulations on March 26, 2018, the
Universal Access to Quality Tertiary Education
Act, with a total budget of around PhP40 billion
in 2018, will be implemented for higher education
starting AY 2018-2019, while free TVET will be
implemented starting July 2018.
149 CHED, July 16, 2018.
150 TESDA, July 16, 2018.
T H E P R E SI D E N T ’ S R E P O RT 105
TO THE PEOPLE
2016 - 2018
We continue to ensure the
equitable allocation of
crucial basic education
resources with the end
goal of attaining an
environment that will
support the development
of learners.
The law entitles 1.3 million students from 112
state universities and colleges (SUCs) and 78
CHED-recognized local universities and colleges
(LUCs) to free tuition and miscellaneous fees,
and other benefits starting AY 2018-2019. It
also ensures the access of 101,325 Filipinos to
free TVET in 332 Post-Secondary State-run
Technical-Vocational Institutions (TVIs), which
will enhance their employability.
To further promote competitiveness, job-
readiness, and social equity, we launched in
February 2018, the Train to Build, Build, Build
Program, which seeks to complement the
government’s big infrastructure projects by
providing TVET to 100,000 construction workers.
For 2018, 40,446 individuals have enrolled in
construction-related training programs, and
26,007 students have completed their training.
Upon completion of the training, the beneficiaries
will be hired by the government to take part in its
various infrastructure projects.150
We are also complementing the provision of
formal school-based education and training with
efforts to make learning even more inclusive
for marginalized sectors. We have provided free
skills training to 24,386 indigenous peoples,
20,550 drug surrenderers, 858 rebel returnees,
23,330 inmates, and 4,423 calamity-affected
communities as of June 2018.

The DOST also offers Science, Technology,
Engineering and Mathematics (STEM)
scholarship to the needy but bright incoming
freshmen students. The number of scholars
increased from 5,000 in 2016 to 9,000 in
2018, with their monthly stipends raised
from PhP5,000 to PhP7,000. Moreover, the
DOST has reached 97 percent of the country’s
municipalities and congressional districts with
at least one DOST- Science Education Institute
(SEI) scholar, following the provision of RA no.
7687153 or Science and Technology Act of 1994.
PROMOTING AN ENABLING
ENVIRONMENT FOR THE POOR,
MARGINALIZED, AND VULNERABLE
We continue to provide social protection and
opportunities for growth, especially to the poor,
marginalized, and vulnerable to empower them
and build their socioeconomic resilience.
SUSTAINING THE PANTAWID PAMILYANG PILIPINO
PROGRAM (4Ps).154 We are committed to continue
implementing the 4Ps, sustaining the budget
increases from PhP62.67 billion in 2016 to
PhP78.19 billion in 2017 and PhP89.41 billion in
2018. These increases made possible the provision
of rice allowance, on top of the cash grants to
all active 4Ps households and families who are
compliant with health, education, and family
development conditionalities. The rice allowance
enables them to have rice to eat every day, which is
among my commitments during my first SONA.
As of June 2018, there were 4.39 million active 4Ps
households and families, 4.28 million of which
have been provided with cash grants and rice
allowance amounting to PhP22.026 billion.155
153 Provides scholarships to talented and deserving students whose families’ socio-economic status do not exceed the set cut-off values of certain
indicators.
154 DSWD, July 18, 2018.
155 Payout is ongoing.
156 DSWD, op.cit.
157 As provided by DSWD Memorandum Circular No. 03, s. 2018, which provides guidelines for UCT implementation, a Social Pension beneficiary shall still
be entitled to a separate UCT cash grant even if they belong to a 4Ps or NHTS-PR household/family.
T H E P R E SI D E N T ’ S R E P O RT 107
TO THE PEOPLE
2016 - 2018
Institutionalization of the
National Feeding Program
It is our duty to promote and protect the well-being
of our children and the youth, whose roles are vital
in nation-building. Therefore, on June 20, 2018, I
signed RA no. 11037 or the Masustansyang Pagkain
para sa Batang Pilipino Act to institutionalize
the National Feeding Program in public daycare,
kindergarten, and elementary schools to combat
hunger and undernutrition among our Filipino
children. The DSWD and DepEd shall be the lead
agencies in the implementation of the Program.
INTRODUCING THE UNCONDITIONAL CASH
TRANSFER (UCT) PROGRAM.156 To help mitigate
the adverse economic effect of the TRAIN law
(RA no. 10963), especially on the poor, the same
law also provided for the implementation of
the UCT Program to grant unconditional cash
subsidies to 10 million poor households, families,
or individuals for a period of three (3) years. This
target consists of 4.4 million households and
families who are 4Ps beneficiaries, 3.0 million
indigent senior citizens who are Social Pension
beneficiaries, and another 2.6 million non-4Ps
households who were also identified under
the National Household Targeting System for
Poverty Reduction (NHTS-PR).157
Qualified beneficiaries are each entitled to
monthly grants of PhP200.00 for 2018 and
PhP300.00 for 2019 and 2020, which shall be
provided one time per year. As of June 2018, the
DSWD, in coordination with the LANDBANK
has released the PhP2,400.00 UCT cash grant for
2018 to around 4.277 million beneficiaries.
 108 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
Qualified benficiaries receive their UCT grants.
Photo Credit: DOF
IMPROVING THE BENEFITS FOR THE WELFARE
AND DEVELOPMENT NEEDS OF VULNERABLE
PENSIONERS. On May 8, 2018, I signed EO no. 54,
entitled “Increasing Employees’ Compensation
Benefits in the Private Sector and Carer’s
Allowance in the Public Sector,” which provides
for, among others:
• A PhP1,150.00 across the board increase in
the monthly disability pension of Employees’
Compensation (EC) permanent disability
pensioners in the private sector and qualified
beneficiaries in the public sector;
• The continuous implementation of the
SSS’ minimum EC Monthly Disability and
Survivorship pension of PhP2,000.00 in the
private sector;
• An increase from PhP575.00 to PhP1,000.00
per month of the carers’ allowance granted
to EC permanent disability pensioners in the
public and private sectors; and
158 DSWD, op.cit.
• An increase from a minimum daily income
benefit of PhP10.00 to PhP110.00, and from a
maximum daily income benefit of PhP200.00
to PhP480.00 under the Temporary Total
Disability Benefits for the private sector.
We are also increasing the target and budget
allocation for the PhP500.00 monthly pension of
indigent senior citizens who are frail, sickly, or
with disability; and those who do not have any
pension from other government agencies nor
have a permanent source of income or source of
financial assistance or compensation to provide
for their basic needs. For 2018, we target to
provide social pension to 3.0 million indigent
senior citizens with a budget of PhP19.28 billion,
which is higher than our 2017 target of 2.81
million indigent senior citizens with a budget of
PhP17.11 billion.
As of June 2018, 2.906 million or 96.87 percent of
the 3.0 million indigent senior citizens have been
given their cash grants.158

FOSTERING A SECURE
AND MEANINGFUL EMPLOYMENT
We recognize that our labor force is the
main driver behind our country’s growth
and development. Thus, we shall ensure the
promotion and protection of the rights and
welfare of our Filipino workers.
PROVIDING FOR SAFE, DECENT, HUMANE, AND
IMPROVED WORKING CONDITIONS AND ENVIRONMENT
FOR FILIPINOS EMPLOYED LOCALLY159
Through the various initiatives, we continue
to enhance our worker’s employability and
competitiveness; strengthen the social protection
of vulnerable workers; enforced labor laws; and
pursue the resolution of labor disputes.
• Enhancing Workers’ Employability and
Competitiveness. We engendered a competent
and productive workforce by:
`` Providing relevant training and work
experiences to 435,185 youth workers from
July 2016 to June 2018 through various
programs (see Table 40);
TABLE 40. ASSISTANCE TO YOUTH WORKERS
PROGRAM ACCOMPLISHMENT (FROM JULY 2016 TO JUNE 2018)
Special Program for the 388,046
Employment of Students poor students and
out-of-school youth
Government Internship
Program
35,752
youth
JobStart Program 11,387
youth
Source: DOLE
159 DOLE, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 109
TO THE PEOPLE
2016 - 2018
`` Intensifying our employment facilitation
services to make the labor market highly
accessible through the:
ƒƒ Public Employment Service Offices
(PESO), which provide employment
services, e.g., job search assistance,
career guidance, timely labor market
information, job matching, referral, at
the local level. Maintained largely by
LGUs, non-government and community-
based organizations, and SUCs, PESOs
are linked to the DOLE for coordination
and technical supervision, as part of the
national employment service network;
From July 2016 to June 2018, 4.721 million
qualified jobseekers were referred for
placement through the PESOs, of which 84
percent or 3.957 million were hired; and
ƒƒ Nationwide conduct of job fairs where
207,457 out of 1.214 million registered
applicants were hired on-the-spot during
the 3,298 job fairs conducted from July
2016 to June 2018.
provided with temporary employment to augment their
financial capacity to continue / pursue their education
gained government work experience as interns for six
months
provided with life skills and technical trainings, and
full-cycle employment facilitation services, of which
5,917 youth were employed
 1 10 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE

• Strengthening social protection for vulnerable (TUPAD) Program,161 582,536 beneficiaries

workers
`` Raised daily minimum wages. From July
2016 to June 2018, we issued 22 wage orders
providing wage increases ranging from
PhP9.00 to PhP56.00 in 17 regions.
`` Provided livelihood and emergency
employment assistance. From July 2016 to June
2018, we provided assistance to vulnerable
workers as immediate relief against income
loss arising out of crisis, shocks, or disasters.
These include the following:
ƒƒ Under the Kabuhayan Program,160 219,038
beneficiaries nationwide were provided
with assistance in starting new livelihood
projects, or expanding, restoring, or re-
establishing existing livelihood projects
destroyed due to natural or man-made
disasters; and
ƒƒ Under the Tulong Panghanapbuhay sa
ating Disadvantaged / Displaced Workers
nationwide were provided with emergency
employment, and received minimum wage
and social insurance for added protection.
• Ensuring the strict enforcement of labor laws
and standards. I committed to the Filipino
people to end illegal forms of contracting
arrangements. Towards this end, the DOLE
intensified its regular inspection of private
establishments to ensure their compliance
with labor laws and standards. From July 2016
to June 2018, the DOLE inspected 114,252
private establishments with 8.306 million
workers nationwide.
Our efforts resulted in the regularization of
316,880 workers as of July 9, 2018. We target to
regularize 500,000 workers by end-2018.
In recognition of the need to engage our social
partners, the DOLE has trained and authorized
156 labor and employer organizations
representatives to assist in the conduct of
DOLE inspections until December 2018.

During the 116th Labor Day Celebration on May 1, 2018 in Cebu City, I signed EO
no. 51, entitled “Implementing Article 106 of the Labor Code of the Philippines,
as Amended, to Protect the Right to Security of Tenure of All Workers Based
on Social Justice in the 1987 Philippine Constitution,” providing for the strict
implementation of labor laws.
I remain firm in my commitment to put an end to “endo” and illegal
contractualization. However, I believe that in order to implement an effective
and lasting solution to the problems brought about by contractualization,
Congress needs to enact a law amending the Labor Code.
A mere EO is not enough. To this end, I have certified as urgent the passage
of the bill on security of tenure to once and for all address the issue and
provide long-term solutions that would further strengthen the workers’ right
Photo Credit: PCOO
to security of tenure.

160 A program under the DOLE Integrated Livelihood and Emergency Employment Program (DILEEP), it is a grant assistance for capacity-building on
livelihood for the poor, vulnerable, and marginalized workers.
161 Also under the DILEEP, it is a community-based (municipality or barangay) package of assistance that provides emergency employment for displaced
workers, underemployed, and unemployed poor, for 10 to 30 days.

• Ensuring Just, Simplified, and Expeditious
Resolution of All Labor Disputes. We promote
conciliation-mediation as an effective alternative
dispute resolution mechanism to provide labor
justice in a speedy and impartial approach.
From July 2016 to June 2018, we accomplished
the following:
`` 136,438 workers were awarded with
PhP6.741 billion in monetary awards as a
result of 83,341 settled cases and/or Requests
For Assistance (RFAs) through labor dispute
resolution mechanisms;
`` 1,152 workers were awarded with PhP2.033
billion with the settlement of 22 actual
strike/lockouts handled; and
`` 239,548 workers received PhP16.614 billion
monetary benefits with the disposition of
80,515 cases under the Speedy and Efficient
Delivery of Labor Justice (SpeED).
SUSTAINING EMPLOYMENT CREATION. In
December 2016, the DOLE and the DTI adopted
the Trabaho, Negosyo at Kabuhayan (TNK):
A Blueprint for Decent Employment and
Entrepreneurship 2017-2022. We will aim to
TNK in Zamboanga Peninsula.
Photo Credit: DTI
162 Includes food processing
163 DTI, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 111
TO THE PEOPLE
2016 - 2018
Resolved Labor Dispute Cases
In 2017, after 22 years, we enforced the
decision on the Rubberworld Philippines,
Incorporated case amounting to PhP28 million,
benefitting 718 workers. Another case highlight
is the KEPCO case, in which PhP17.67 million in
monetary benefits were awarded to 54 workers.
address unemployment by creating 7.5 million
jobs, mainly in key employment generating
sectors, e.g., manufacturing,162 construction,
tourism, IT-Business Process Management,
transportation and logistics, and retail trade.
ENHANCING THE COMPETITIVENESS OF MSMEs
TO CREATE MORE LIVELIHOOD OPPORTUNITIES.163
Considering that Philippine MSMEs account
for 99.57 percent of all established businesses
and employ more than 63 percent of our
country’s workforce, we made available to
existing and potential MSMEs more programs
to promote entrepreneurship, increase their
access to markets, and sustain and expand their
operations, allowing them the opportunity to
create more jobs and help uplift the lives of the
Filipino people.
 1 12 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE

The President visits the New Hope Village Housing Project, Brgy Sta Elena, Tacloban City, January 25, 2017
Photo Credits: DTI

To achieve our vision of a more globally
competitive, regionally integrated, nationally
resilient, highly sustainable, and productive,
innovative, and dynamic MSME sector by 2022,
we:
• Established Negosyo Centers (NCs) to Assist
• Provided an Alternative Source of Financing
for Microenterprises through the Pondo sa
Pagbabago at Pag-Asenso (P3). Through P3,
small enterprises including market vendors,
small growers of crops and livestock, and
members of cooperatives can borrow at 2.5
percent interest rate per month instead of 20
percent per month. The P3 Fund is now at
PhP2 billion, almost PhP1 billion of which has
been released to micro-enterprises through
more than 200 lending conduits in 72 provinces
nationwide;
Entrepreneurs. A total of 892 NCs were
established nationwide as of July 5, 2018.
Of which, 645 were established during my
Administration. NCs serve as one-stop shop
facilities that help expedite the processing of
requirements of MSMEs and provide assistance
on product development and promotion,
among others;

“Nung una umuutang kami sa 5-6, nagbago lang ang takbo ng

pangungutang nung sugurin ako ni Ramon Lopez.
Nakaluwag ako sa panggastos sa materyales, dahil noon hinihintay
ko pang tubusin [ang mga sapatos] bago ako makabili sa pang
susunod ko. Nang ako’y makakuha [sa P3], ibinili ko na agad nung
gagawin pa lang [na mga sapatos]. Nung matapos ko iyan [bayaran
ang utang ko sa P3], nakaulit pa uli ako, isang daan [libo] na.
Maluwag na maluwag talaga yung dalawang libo naitatabi ko
[panghulog]. Di kapares ng [5-6], obligado ka r’yan, sa meron at sa
wala, babayaran mo.
Ang laking luwag ko nang ako’y makautang [sa P3].”
Source and Photo Credit: DTI

- Tatay Oly, the President’s shoemaker

 T H E P R E SI D E N T ’ S R E P O RT 1 13
TO THE PEOPLE
2016 - 2018

The NCs also facilitated 5,510 loan applications We aim to establish 150 additional NCs in 2018,
to partner financial institutions and government which will provide support to an additional
financial institutions with 2,620 MSMEs availing 45,000 MSMEs.
of loans with a value estimated at PhP174 million.

F I G U R E 24 . NEGOSYO CENTER ESTABLISHED, AS OF JULY 5, 2018

2014 5 LUZON 49 Full-service 41 DTI

451
2015 145 217 Advanced 393 LGU
185 Basic 6 Academe
2016 297 4 NGO
NEGOSYO CENTERS 7 Mall
2017 341
2018 104
VISAYAS

892
20 Full-service 12 DTI

212
162 Advanced 198 LGU
30 Basic 2 Academe
- NGO
NEGOSYO CENTERS - Mall
NEG O SYO C E N TE R S
MINDANAO 54 Full-service 22 DTI

229
DUTERTE 105 Advanced 203 LGU
ADMINISTRATION 70 Basic 4 Academe
2016 - 200 - NGO
2017 - 341 NEGOSYO CENTERS - Mall
2018 - 104

645 BY T YPE

128
Component 95/100
Independent Component 4/5
Highly Urbanized 29/33
CITY LEGAL
CLASSIFICATION
90% of the 143 Cities are covered

Special 2/2 4th Class 24/26 484 123 285

128
CITY INCOME
1st Class
2nd Class
3rd Class
49/53
13/16
28/32
5th Class 9/10
6th Class 3/4
Advanced Full-service Basic

CLASSIFICATION BY LO CAT IO N
90% of the 143 Cities are covered
75
DTI
794
LGU
12 NGO
ACADEME
4 7
MALL
720
1st Class 242/320 4th Class 151/358
2nd Class 116/170 5th Class 78/252
3rd Class 130/254 6th Class 3/19
MUNICIPALITY
INCOME 52% of the 1,373 Municipalities
CLASSIFICATION are covered

Source: DTI
 1 14 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
• Provided MSMEs with Access to Facilities Through
the Shared Service Facilities (SSF) Project. Under
my Administration, we have established 225
SSFs nationwide worth PhP169.50 million
benefitting 142,783 Filipinos. To date, there are
2,236 SSFs worth PhP1.20 billion with 241,813
beneficiaries, generating 122,135 jobs. The
SSF Project provides MSMEs with technology,
machinery, equipment, tools, systems, skills,
and knowledge under a shared system. We hope
to set up 83 additional SSFs in 2018 to assist
more MSMEs.
Oriental Mindoro
Calamansi SSF Success Story
Calamansi or Philippine Lemon is considered as a
major and high-value crop. The MIMAROPA region is
known to be the top producer of calamansi, producing
half of the national production. Among the five (5)
provinces in MIMAROPA, Oriental Mindoro contributes
99 percent of the supply from a 5,886-hectare land,
earning the title the ‘Calamansi King’ of the country.
During the peak season, farmers face oversupply
and unsold marketable surplus of fresh produce,
which results in heavy losses, lower prices, and
smaller income. This is being attributed to the lack
of institutional and marketing activities.
In 2014, three (3) SSF Projects for Calamansi Processing
were established in Oriental Mindoro. Since their
full operation in 2014, these three (3) Calamansi SSF
Projects have generated a total of PhP19.29 million
additional sales from the PhP1.38 million baseline in
2014. Jobs increased four (4) times from 205 direct
and indirect jobs to 1,185 direct and indirect jobs.
Source: DTI
TATA COSTALES DE LA CALZADA
Owner, A.T.E. by Tatah
KMME Batch 1 Graduate
“Seventeen months after I
graduated from the [KMME]
program, we tripled the number
of manpower in our business,
from nine (9) we are now 27
and we are hiring 10 more...
27 households... benefitting from
this business.”
Source: DTI
• Provided Weekly Coaching and Mentoring on
Different Areas of Entrepreneurship through the
Kapatid Mentor ME (KMME) Program. One
of my marching orders is to enhance the local
business environment, hence, the KMME was
born. KMME aims to provide assistance to
micro enterprises in improving their business’
productivity, market reach, and sales, resulting
in more jobs.
In 2017, 5,799 attendees consisting of 2,663
MSMEs graduated in 121 sessions of the
program. For 2018, we intend to mentor 5,000
MSMEs. At present, there are about 476 mentors
under the program. We also conducted 6,963
trainings with 266,237 beneficiaries through
the SME Roving Academy.
• Encouraged large commercial enterprises and malls
to provide market spaces to sell quality MSME
products through “Go Lokal!”. Initiated by the
DTI, in collaboration with select retail partners
such as Rustan’s, SM, and Robinsons, Go Lokal!
A Go Lokal! Store in Robinson’s Place Manila showcasing
innovative and high-quality Philippine products
Photo Credits: DTI
 T H E P R E SI D E N T ’ S R E P O RT 1 15
TO THE PEOPLE
2016 - 2018

is a marketing platform provided to MSMEs

for mainstream market access, incubation, Go Lokal! is an
and branding. It is an excellent opportunity for excellent opportunity
MSMEs to go mainstream without incurring the for MSMEs to go
high cost of operating a retail outlet. Since they mainstream without
opened in December 2016, 58 Go Lokal! stores incurring the high cost
nationwide with 332 MSME-registered suppliers of operating a retail
were able to generate sales amounting to over outlet.
PhP33 million as of May 2018; and

• Imparted innovation system support and

technological interventions to MSMEs.164 The
Small Enterprise Technology Upgrading SUPPORTED THE GROWTH OF THE
Program (SETUP) aims to empower MSMEs MANUFACTURING SECTOR TO PROVIDE SECURE
through the provision of technology JOBS TO OUR PEOPLE. We formulated a new
intervention packages, which could help industrial policy, known as the Inclusive
them apply innovation in their firms, move Innovation Industrial Strategy (i3S), to revive
up the technology scale, and become more the manufacturing sector and link it with the
competitive thereby improving productivity, agriculture and services sectors. Central to the
substantially generating value-added and i3S is the implementation of the Manufacturing
employment to increase the country’s overall Industry Roadmap (MIR), which called for
manufacturing growth. increasing manufacturing contribution to total
output and employment.
TABLE 41.
SET-UP ACCOMPLISHMENTS The first phase of the MIR (2014-2017) is
Number of firms/entities Number of
focused on the development of the auto and auto
provided with S&T assistance employed persons parts industry through the Comprehensive Auto
2016 2017 2016 2 01 7 Resurgence Strategy (CARS) Program, aerospace
7,357 8,017 32,354 59,912 parts, electronics, garments, chemicals, furniture,
tool and die, and shipbuilding. Some sectoral
Number of technology Total funded projects
inventions (in Million PhP)
highlights are as follows:
2016 2017 2016 2 01 7
• Automotive. With a production cost handicap
6,665 5,600 824 774 estimated at PhP67,500 to PhP81,000 per
Average productivity vehicle vis-à-vis Thailand and Indonesia,
Number of projects improvement
(in percent) the Philippine automotive industry is unable
2016 2017 2016 2 01 7 to compete with completely built-up units
722 769 31 44 imported from ASEAN. In this situation,
carmakers in the country have little choice but
Gross sales
(in Million PhP) to import parts, thereby incurring significant
2016 2017 logistics costs. It also results in higher local

Source: DOST
8,900 7,300 unit production costs on both the carmakers
and parts makers. To address this, the CARS
Program’s core strategy is to raise the industry’s
164 DOST, July 20, 2018. production level to a competitive scale.
 1 16 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
We formulated a new industrial
policy, known as the Inclusive
Innovation Industrial Strategy,
to revive the manufacturing
sector and link it with the
agriculture and services sector.
The Program has registered two (2) participating
car makers, Toyota and Mitsubishi, which will
produce a total of 430,000 units up to 2024.
Together with their 10 participating parts
makers, the participants have invested PhP11
billion in plant equipment and tooling assets for
the production of parts as of June 2018.
Mitsubishi has successfully rolled-off its
Mirage/G4 enrolled model last February 2018
while Toyota just recently launched its new
Vios FMC. These two (2) models account
for 40 percent of the total passenger cars
segment. Upon reaching full implementation,
the program is expected to generate 67,000
factory and ancillary jobs. This will increase
employment in the local manufacturers of
automotive parts such as body shell assembly
and large plastics assemblies, and common
parts and strategic parts.
• Aerospace parts. The Philippines positions
itself to be a recognized partner in aerospace
manufacturing and aircraft maintenance,
repair and overhaul in the Asia-Pacific
region. Our aerospace industry is among the
fastest growing industries in the region, with
exports growing by 42 percent annually from
2012-2016. This led to a significant 30-place
increase in the Philippines’ rank in the
PWC (PriceWaterhouseCoopers) Aerospace
Manufacturing Attractiveness Index from 67
in 2015 to 37 in 2017. With some of the world’s
165 World Shipbuilding Statistics, December 2017
166 Includes brake fluid, helmet, blender, Christmas lights, wires and cables, and electric fan
largest providers present in the country, we are
positioned to be a key player in the region.
• Shipbuilding. In 2017, our country ranked as the
fourth largest player in the global shipbuilding
industry after China, Korea, and Japan based on
combined gross tonnage165 of ships and vessels
manufactured. Philippine ship and vessel
exports increased by 62 percent from US$1.04
billion in 2016 to US$1.68 billion in 2017. To
further expand the export-oriented segment,
our country is inviting new players from other
countries to set up shipyards in the Philippines.
CONSUMER PROTECTION. To protect consumers
from unfair trade practices, we intensified our
monitoring of firms’ compliance with Fair Trade
Laws (FTLs). From July 2017 to June 2018, we
monitored 18,734 firms in the NCR on their
compliance with FTLs, more than double the
9,028 firms monitored from July 2016 to June
2017. As a result of our strengthened monitoring,
we confiscated 318,343 violative products166
amounting to PhP40.13 million.
Moreover, to strictly ensure that cement
products meet the specified safety and/or quality
requirements, we have issued new rules and
regulations on the mandatory certification of
portland cement and blended hydraulic cement
with pozzolan. The DTI issued Department
Administrative Order (DAO) no. 17-06, s. 2017,
which mandates that only cement sourced from
cement manufacturing plant holding a Philippine
Standard (PS) license shall be permitted to be
distributed in our country.
Through the implementation of the Mandatory
Product Certification Schemes, we issued 7,991
Import Commodity Clearance certificates,
while 780 PS Quality and/or Safety Certification
Mark Licenses were either issued, renewed, or

monitored. This ensures that regulated products
commonly used by the Filipino household
conform to the particular standards before
distribution in the local market.
Other initiatives to ensure consumer protection
and fair business competition are the following:
• The DTI signed on August 1, 2017, the
Memoranda of Agreement with the PNP, NBI,
and National Intelligence Coordinating Agency
to protect consumers against fraudulent,
deceptive, and manipulative schemes in buying
products or services in the market;
• The DTI collaborated with the Direct Selling
Association of the Philippines in February
2018 to protect consumers from Multi-Level
Marketing scams;
• The DTI increased the stores it monitors in
the NCR from 400 to 600 and plans to expand
the number of monitoring teams to cover 500
more stores outside NCR; and
• The Philippine Competition Commission
(PCC), from July 2016 to June 30, 2018,
completed the review of and decided on 78
merger and acquisition notifications worth
PhP1.35 trillion in transaction value within
the prescribed timeline. This ensures that
these deals do not prevent, lessen, or restrict
competition in Philippine markets, thereby
protecting consumer welfare.167
The PCC investigated possible anti-
competitive behavior in various industries to
ensure a level-playing field for businesses and
enhance consumer welfare.
167 PCC, July 16, 2018.
168 DOT, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 1 17
TO THE PEOPLE
2016 - 2018
HARNESSING THE TOURISM INDUSTRY TO
GENERATE LIVELIHOOD.168 Visitor arrivals to the
Philippines for the first semester of 2018 reached
an all-time high of 3.71 million, a double-digit
growth of 10.40 percent from the 3.36 million
arrivals in the same period in 2017. This is a
clear manifestation that the target of 7.4 million
tourist arrivals by the end of 2018, as cited in the
National Tourism Development Plan for 2016-
2022, is achievable.
For the month of June alone, visitor arrivals totaled
528,747, posing an 11.35 percent increase from the
474,854 arrivals of the same month in 2017.
The influx of visitor arrivals may be attributed
to the government’s continuous marketing
promotions; aggressive actions to create new air
routes and develop new tourism products; travel
facilitation; and confidence in tourism investments.
Consolidated efforts of tourism stakeholders
both in the government and private sector also
sustained the upward trajectory of visitor arrivals,
which helps create jobs, generate income for people
involved in the tourism sector, and encourage
entrepreneurship in the tourism industry.
FIGURE 26. INTERNATIONAL ARRIVALS,
JANUARY-JUNE 2018
10.40%
3.71
3.36
no. of arrivals (in million)
January to June 2017 January to June 2018
Source: DOT
 1 18 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
STRENGTHENING AGRARIAN REFORM
AND ACCELERATING AGRICULTURAL
DEVELOPMENT
I envision making food available and affordable
to every Filipino through the empowerment of
our farmers and fisherfolk. I am also committed
to upholding land tenure security for our farmers
and ensuring food security for every Filipino.
Recovering from a decline in 2016, our
agriculture sector grew by 3.95 percent in
2017, with agricultural production gross value
increasing from PhP778.65 billion in 2016 to
PhP809.38 billion in 2017. The growth in 2017
was the highest in five years.169
REVITALIZING AGRARIAN REFORM. My
Administration aims to implement genuine
agrarian reform in the country through strong
and decisive governance. It is my duty to uphold
the rights of tillers to own, control, secure,
FIGURE 27. PHILIPPINE AGRICULTURAL PERFORMANCE 2017
VALUE OF AGRICULTURAL PRODUCTION
(IN BILLION PHP)
787.84 789.71
0.24%
777.01
-1.40%
1.39%
2013 2014 2015
Source: Philippine Statistics Authority
169 DA, July 19, 2018.
170 DAR, June 22, 2018; and July 16 and 18, 2018.
cultivate, and enhance their agricultural lands
and improve their quality of life. Below are some
of my Administration’s efforts to achieve social
equity, peace, and development:
• Fast-tracked land acquisition and distribution.
From July 2016 to June 2018, 27,830 agrarian
reform beneficiaries (ARBs) received their
Certificates of Land Ownership Award
(CLOAs) covering 41,324 hectares. The
CLOAs would enable our farmers to become
full owners of the land they till and provide
them an opportunity to improve their quality
of life and achieve social equity, peace, and
development in their area; and
• Advocated the Rights and Welfare of Farmers and
170
Farm Workers. We resolved more than 55,800
agrarian law implementation cases from July 2016
to June 2018. We ensured the speedy resolution
of agrarian cases so that our ARBs need not go
through a tedious and expensive process.
PERCENTAGE DISTRIBUTION OF VALUES
OF PRODUCTION IN 2017 (PER SUB-SECTOR)
POULTRY FISHERIES
809.38 15.96% 15.97%
17.30%
CROPS
50.76%
LIVESTOCK
778.65 3.95
%
4.97%
GROWTH RATE IN AVERAGE
FARMGATE PRICES 3.40% 2017
2016 2017 2016

The President led the distribution of CLOAs to ARBs in Isulan, Sultan Kudarat on April 2, 2018.
Photo Credits: PCOO
ENSURING RICE SECURITY.171 Rice is the staple
food on every Filipino’s table. My Administration
is committed to ensuring the adequate supply of
rice in the country. I have directed the DA to
increase the National Food Authority (NFA)’s
rice buffer stock to ensure that rice is available
throughout the year. In addition, the delivery of
the 250,000 metric tons (MT) of rice imported
by the NFA through government-to-government
scheme is now almost complete. As of July 10,
2018, almost 200,000 MT of rice have been
shipped into the country.172
The rice traders are also our partners. Through
a program called Tulong sa Bayan caravan, rice
millers and traders from Ilocos Region, Cagayan
Valley, Central Luzon, Bicol Region, Western
Visayas, and Davao Region delivered 47,076 bags
of rice (50kg per bag) to further ensure adequate
rice supply. These were sold from PhP38.00
to PhP39.00 to help ensure the affordability of
rice in the market. The deliveries were part of
the 100,000 bags committed by our rice traders
during our meeting in April 2018.
171 DA, op.cit.
172 NFA, July 20, 2018.
T H E P R E SI D E N T ’ S R E P O RT 1 19
TO THE PEOPLE
2016 - 2018
To modernize rice farming in the country, we
developed the Rice Crop Manager (RCM), which
is a web-based tool providing personalized advice
to farmers on crop and location-specific nutrient
management. Our RCM extension workers use a
computer or smart phone to provide farmers with
crop management recommendations matching
their field condition. Following recommendations
from the RCM, there was an average yield
increase of 400 kg per hectare, which translates
to an average increase in income of PhP4,831 per
hectare per season. As of December 2017, 49,113
farmers have registered using the RCM.
To help stabilize rice prices, we also need to
address the issue of artificial rice shortage. I ask all
the rice hoarders, cartels, and their protectors to
stop messing with the Filipino people. Consider
yourselves warned; mend your ways now or the
full force of the State shall be brought to bear
upon you. I am directing all intelligence agencies
to unmask the perpetrators of this economic
sabotage and our law enforcement agencies to
bring them to justice.
 120 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
TienDA at the Ayala South Park
Photo Credit: DA
PROMOTING AGRICULTURAL DEVELOPMENT.173
Our farmers and fisherfolk play a pivotal role in
nation building. Although they face challenges
such as disasters, price fluctuation, and financial
resource shortages, they continue to supply food
to the country. Thus, it is my priority to Filipino
farmers and fisherfolk to ensure the availability
and affordability of food for every Filipino
family. We assisted our farmers and fisherfolk
through the following initiatives:
• Provided Free Irrigation to Farmers. In February
2018, I signed the Free Irrigation Act (RA no.
10969), which gives free irrigation to farmers
who own lands not larger than eight (8) hectares
and allows condonation of unpaid irrigation
fees and writing-off of loans of farmers who
own the same size of land. Since its enactment,
more than 1.05 million farmers out of the 1.12
million estimated total farmers nationwide
have benefitted from free irrigation, increasing
their dry cropping season production from
3.95 tons per hectare in 2017 to 4.43 tons per
hectare in 2018;
173 DA, op.cit.
Launching of the DA Partnership with Ayala Malls in Davao City,
November 18, 2018
Photo Credit: DA
TienDA at the Bureau of Plant Industries
Photo Credit: DA
• Linked farmers and fisherfolk to markets to
optimize profit. To effectively link our farmers
and fisherfolk to the markets and help increase
their incomes, we launched in 2017, the TienDA
Farmers and Fisherfolk’s Outlets, which aim to
provide them with a venue to sell their produce
directly to the consumers at farmgate prices.
It also seeks to eliminate unnecessary layers of
middlemen, thereby allowing our farmers and
fisherfolk to command fair and reasonable prices
for their produce. This program also benefits
our consumers as they are able to buy fresh and
cheaper agri-fishery produce. From January to
May 2018, we conducted 28 TienDA food fairs
nationwide, generating more than PhP80.87
million in total sales for farmers and fisherfolk,
and benefitting 433 farmers and farmer groups.
We have also conducted TienDA Para sa
mga Bayani in military camps including
the Bonifacio Naval Station, Taguig; AFP
Headquarters in Quezon City; Camp Manuel
T. Yan, Sr. in Compostela Valley; and Camp
Gen. Adriano Hernandez in Iloilo to provide

a safer and more accessible marketplace for the
AFP thereby protecting them from potential
ambush while going to the market;
• Strengthened the fisheries sector. To revitalize
and develop the fisheries sector, we undertook
the following:
`` Awarded 7,128 units of motorized fiber-
glass reinforced plastic (FRP) boats to
fisherfolk beneficiaries from 2017 to March
2018. These FRP boats are environment-
friendly and sturdier and can withstand the
harsh marine environment compared to its
wooden counterparts;
`` Lauded outstanding coastal or LGU
communities through the Malinis at
Masaganang Karagatan (MMK) program,
which aims to promote fisheries resource
protection and conservation among the
The Philippine Continental Shelf in the Philippine Rise region
Photo Credit: DENR
174 Resource reserve is an extensive and relatively isolated and uninhabited area designated with difficult access to protect natural resources and
biodiversity of the area for future use, and prevent development activities that could affect the resource pending the establishment of objectives,
which are based upon appropriate knowledge and planning.
T H E P R E SI D E N T ’ S R E P O RT 121
TO THE PEOPLE
2016 - 2018
fisherfolk and other stakeholders in coastal
municipalities. Since its launching in
August 2016, the MMK awarded a total of
PhP766 million worth of fisheries livelihood
interventions to 97 outstanding coastal
communities based on the absence of illegal
fishing; observance of closed fishing season;
establishment of protected marine sanctuary;
and absence of domestic and industrial
wastes in the coastal waters, among others;
`` Operationalized 89 out of the 322 completed
Community Fish Landing Centers (CFLC)
from 2016 to May 2018. The CFLC Project
aims to improve local buyers’ and/or
consumers’ access to safe and quality fish
and fishery products. Apart from being
the center of fish trade, the facility is also a
hub for economic activities (fish landing
and auction); a venue for skills training,
community organizing and information
Protecting the Philippine Rise
The Philippine Rise is the habitat for several aquatic
resources, which are beneficial in the fields of medicine,
cosmetics, and nutritional products.
To protect and conserve the ecological, biological,
scenic, scientific, and educational features of the
Philippine Rise, I declared the classification of more
than 352,000 hectares of the area under the resource
reserve174 category of RA no. 7586 or the National
Integrated Protected Areas System (NIPAS) Act of 1992.
Out of the resource reserve area, 49,684 hectares have
been classified as Strict Protection Zone and restricted
only for scientific studies and religious use by indigenous
cultural communities/indigenous peoples, while the
remaining 302,706 hectares have been designated as
Special Fisheries Management Area.
 122 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
The President led the commissioning of BRP Lapu-Lapu and BRP Francisco Dagohoy at the Sasa Wharf in Davao City on December 21, 2017.
Photo Credit: PCOO
sharing; and a facility for monitoring of fish
catch and stocks assessment, among others;
`` Constructed or rehabilitated 29 fish ports
nationwide from July 2016 to March 2018,
which reduced transport costs incurred by
fishermen by 50 percent and post-harvest
losses by 10 percent; and
`` Continued the monitoring and controlling
of illegal, unreported, and unregulated
(IUU) fishing activities. We are committed
to curb these illegal activities for the benefit
of future generations. From 2017 to April
2018, we collected PhP21.7 million in fines
and penalties for various fishing violations.
In relation to this, we commissioned
government ships BRP Lapu-Lapu and BRP
Francisco Dagohoy in 2017 to help strengthen
our country’s ability to combat IUU fishing
and immediately respond to disasters.
• Protected the Local Industry and Consumers from
Bird Flu Virus Outbreaks. To ensure the safety
of our food, we contained the avian influenza
(AI), which struck Pampanga and Nueva Ecija in
175 PLLO, July 19, 2018.
2017, in less than a month after the declaration
of confirmed AI cases in the country. We
culled and disposed thousands of chickens
in Pampanga and Nueva Ecija to prevent the
outbreak from reaching other areas. The DA
strengthened its awareness drives, informing the
public and poultry raisers nationwide on AI and
ways to mitigate the virus to avoid speculation,
which could lead to public scare and confusion.
To ensure that no one will be left behind in this
outbreak, the DA awarded indemnification
checks worth PhP29 million to assist our affected
poultry raisers in Pampanga and Nueva Ecija.
PROSPECTS TO EMPOWER THE AGRICULTURE
SECTOR. We are working tirelessly to continue
uplifting the lives of our farmers. We are
committed to further develop the coconut
industry through the urgent utilization of the
Coconut Levy Fund. The bills (House Bill 5745
and Senate Bill 1233) have been passed by both
Houses and are awaiting bicameral committee
discussion.175 I urge Congress to take the historic
step of speedily passing the bill establishing the
Coconut Levy Trust Fund and help rectify the
injustices committed against our small coconut
farmers.

I approved private sector rice importation
through auction, which will be open to all
importers, including small farmers. Our small
farmers shall be offered an exclusive window176
to make importation affordable for them. This
would allow our small farmers to win from 20
MT to 25 MT of rice in an auction. The private
sector importation through auction scheme shall
also remove discretion of government officials in
choosing entities such as companies or farmer
cooperatives that will import rice, thereby
preventing graft and corruption.177
To give our farmers a level playing field and
prevent economic sabotage, we shall not tolerate
any vicious activities such as alleged re-bagging of
NFA rice, mislabeling of NFA rice as commercial
rice, or mixing NFA rice with commercial rice
for bigger profits. We are intensifying our market
monitoring and enjoining the public to be more
involved as watchdog over government rice
through our hotlines 8888 and 0927-8715921.178
We are working on long-term solutions. On top
of this agenda is to lower the price of rice. We
need to switch from the current quota system
in importing rice to a tariff system where rice
can be imported more freely. This will give us
additional resources for our farmers, reduce the
price by up to PhP7 per kilo, and lower inflation
significantly. I ask Congress to prioritize this
crucial reform which I have certified as urgent.179
We relaunched the construction of big ticket
irrigation projects, some of which have been
delayed for more than 30 years. These projects
include the Balog-Balog Multipurpose Project
in Tarlac (initial target construction in 1998);
Chico River Pump Irrigation Project in Cagayan
176 For the auction, interested importers will be bidding on the service fee. Service fee refers to the amount that the importers are willing to pay to
participate in the auction and take a specific number of lots. Those who give the highest bids will get minimum access volume allocation.
177 DA, op.cit.
178 NFA, op.cit.
179 DOF, op.cit.
180 DA, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 123
TO THE PEOPLE
2016 - 2018
and Kalinga (delayed for 10 years); and the Jalaur
River Multipurpose Project Phase II (JRMP II)
in Iloilo (initial target construction in 2009).
Furthermore, the Ilocos Norte Irrigation Project
Phase II in Ilocos Norte, which was supposed to
start in 1978, will start construction in 2019.180
The status of these big-ticket irrigation projects
is presented below:
TABLE 42. BIG-TICKET
IRRIGATION PROJECTS
PROJECT: JRMP II
Involves the construction of dams and irrigation
facilities in Iloilo. It will provide irrigation to around
22,340 hectares of existing irrigated systems and
9,500 hectares of new irrigation area covering Iloilo
City and various municipalities in the province. It
also has the capacity to generate 6.6 megawatts
hydro-electric power and potable water for
domestic use of nearby municipalities.
AMOUNT: PHP11.21 BILLION
UPDATES: Issued the notice of award to Daewoo
Engineering and Construction Co., Ltd. Contract
signing is targeted within the third quarter of 2018.
PROJECT: MALITUBOG-MARIDAGAO
IRRIGATION PROJECT STAGE II
Involves the construction of three (3) major service
areas. It will irrigate more than 10,000 hectares
of agricultural fields and benefit more than 50
barangays in North Cotabato and Maguindanao
AMOUNT: PHP5.44 BILLION
UPDATES: As of December 31, 2017, we irrigated
5,523.72 hectares of agricultural lands in North
Cotabato and Maguindanao
 124 T OWA R D S UPLIFTING
T H E L I V I N G C O N D I T IO N S
OF THE FILIPINO PEOPLE
I have made it one of
my priorities to help the
sick among the poor in
getting the medicines and
treatment they need. in government facilities who are not included in
ENSURING BETTER-QUALITY HEALTH
FOR ALL
Investments in health have increased over the
years but improvements in health outcomes
and financial protection leading to Universal
Health Care have been hampered by policy and
operational bottlenecks.
In this view, I certified as urgent the Universal
Health Care Bill, which seeks to guarantee equitable
access to quality and affordable health services by:
a) pooling all funds for individual-based health
services under PhilHealth; b) institutionalizing
primary care as a prerequisite to access higher
level of healthcare; and c) supplementing human
resource gaps of the LGUs through a National
Health Workforce Support System, among others.
CONTINUOUS EXPANSION OF HEALTH INSURANCE
COVERAGE AND BENEFITS.181 As of March 2018,
PhilHealth covered 98.24 million Filipinos or 92
percent of the country’s 106.27 million projected
population for 2018. This includes 32.7 million
indigents and 8.7 million senior citizens who are
sponsored by the government.
PhilHealth benefit utilization has increased over
time, particularly among the indigent, sponsored,
lifetime, and senior citizen members. As of March
31, 2018, PhilHealth paid out PhP29.54 billion in
181 DOH, July 21, 2018.
182 The Listahanan or the NHTS-PR is an information management system that identifies who and where the poor are in the country. The system makes
available to NGAs and other social protection stakeholders a database of poor families as reference in identifying potential beneficiaries of social
protection programs.
183 DOH, op.cit.
184 DSWD, op.cit.
benefit payments, an increase over the PhP28.2
billion we paid out as of March 31, 2017.
The Point of Care Enrolment (POC) Program is
a transitory solution to ensure that poor patients
the Listahanan182 will be enrolled and covered
by PhilHealth. From January 2017 to May 2018,
489,065 Filipinos were enrolled and covered
through the POC.
REDUCING OUT-OF-POCKET SPENDING OF
FILIPINO PATIENTS.183 I have made it one of my
priorities to help the sick among the poor in
getting the medicines and treatment they need.
We are implementing the following to reduce
their out-of-pocket spending:
• Medical Assistance for Indigents Program
(MAIP). Through the DOH’s MAIP, we
provide indigent patients financial assistance
for the diagnostics, medicines, and medical
supplies and services they need. Implemented
in around 400 hospitals nationwide, we assisted
1.64 million patients through the MAIP from
July 2016 to December 2017;
• Libreng Gamot para sa Masa (LINGAP)
Program.184 We launched LINGAP in March
2017 in six (6) hospitals nationwide to provide
indigents free access to prescription medicines.
In October 2017, the DSWD expanded the
original program into Lingap at Gabay Para
sa May Sakit (Lingap sa Masa) to also cover,
aside from free medicines, funds for free
medical services and other related needs, e.g.,
laboratory services and assistive devices. The
DSWD also entered into an agreement with
the City Government of Manila to cover six
(6) more public hospitals under the Program,

bringing the total number of LINGAP-
implementing hospitals to 29 nationwide.
As of June 2018, Lingap sa Masa has served
64,779 indigent patients in various participating
government hospitals nationwide since its
introduction in March 2017;
• Medicine Access Program.185 In 2017, we
provided more than five (5) million beneficiaries
with free medicines for breast cancer, childhood
cancer, Kawasaki disease, mental health, stroke,
diabetes, and hypertension, accessible through
identified government health facilities and
other access sites; and
• Endowment Fund Program. The PCSO also
provides funding support to government
hospitals to augment the medical needs of
patients admitted in the charity section/ward.
As of the first quarter of 2018, we had allocated
PhP157 million for 53 government hospitals
nationwide.
In line with our goal to streamline the indigent
patients’ access to the government’s various
medical assistance funds, the PhilHealth, DOH,
DSWD, and PCSO issued a Joint Administrative
Order (JAO) to provide the operational guidelines
in the virtual pooling of medical funds.
All the medical funds enumerated in the JAO will
be accessible to qualified individuals right at the
vicinity of the health service provider through
the Malasakit Center, which we have initially
put up in the Vicente Sotto Memorial Medical
Center in Cebu City, Eastern Visayas Regional
Medical Center in Tacloban City, Western
Visayas Medical Center in Iloilo City, and Jose R.
Reyes Memorial Medical Center in Manila.185
185 DOH, July 23, 2018.
186 DOH, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 125
TO THE PEOPLE
2016 - 2018
Strengthened the
Anti-Hospital Deposit Law
To complement programs that reduce out-
of-pocket spending of Filipino patients, I
signed on August 03, 2017 RA no. 10932 to
strengthen the Anti-Hospital Deposit Law
by increasing the penalties for the refusal of
hospitals and medical clinics to administer
appropriate initial medical treatment and
support in emergency or serious cases.
It amended Batas Pambansa 702 (signed on
April 5, 1984), as amended by RA no. 8344
(signed on August 25, 1997).
The one-stop-shop Malasakit Center will be
institutionalized in all government and private
health services to assist qualified individuals in
availing all possible medical assistance covered
by the JAO.
IMPROVING HEALTH SERVICE DELIVERY.186
We are enhancing the capacity of our public
health facilities and reinforcing the manpower
complement of LGUs by deploying health
professionals nationwide through the following:
• Health Facilities Enhancement Program
(HFEP). Improving the health service delivery
network (SDN) nationwide is one of the key
drivers to the achievement of our mission
of guaranteeing equitable, sustainable, and
quality healthcare for all Filipinos, especially
the poor. Having a functional SDN will require
capital investments to enhance health facilities.
However, for decades, the infrastructure
budget of the DOH has been scarce. Thus,
health facilities have deteriorated and were not
able to catch-up with the needs of the times.
 126 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

Improving the health In 2017, 164 barangay health stations, 28 rural

service delivery network health units, 113 LGU hospitals, and 43 DOH
(SDN) nationwide is one hospitals were provided with various medical
of the key drivers to equipment to improve their service capacities.
the achievement of our
mission of guaranteeing • Human Resource for Health (HRH) Deployment
equitable, sustainable, Program. The HRH in the country is unevenly
and quality healthcare distributed, leaving many rural and remote areas
for all Filipinos, underserved. To address this, we are deploying
especially the poor. different cadres of health professionals,
including doctors, nurses, medical technologists,
midwives, pharmacists, dentists, universal
health care (UHC) implementers, and public
health associates throughout the country. The
Primary health facilities were left unimproved main goal is to improve access to quality health
leading to congestion in tertiary healthcare services for the marginalized, vulnerable, and
facilities. disadvantaged population of the country and
augment the LGU health workforce.
The HFEP aims to address this gap by serving
as the national government’s guide and major As of May 2018, we had deployed 25,991
strategy in providing assistance to government- health professionals in our public health
owned healthcare facilities for the improvement facilities, with around 75 percent of barangays
of infrastructure, provision of up-to-date medical in the Philippines having at least one dedicated
equipment and medical transport, and acquisition health worker providing or navigating primary
of land for healthcare facilities expansion. health care services.

TABLE 43. ANNUAL HRH DEPLOYMENT

2014 2015 2016 2017 2018

(AS OF MAY)
Doctors 320 348 537 516 443
Nurses 11,292 13,371 16,703 17,538 16,181
Midwives 2,700 3,020 4,205 4,549 4,574
Dentists n/a 218 267 272 243
Medical Technologists n/a 165 441 569 559
Public Health Associates n/a 834 1,681 2,771 2,514
Pharmacists n/a n/a n/a n/a 253
UHC implementers,
Nutritionists, Dieticians n/a n/a n/a 1,477 1,224
Total 14,312 17,956 23,834 27,692 25,991
Source: DOH

PhilHealth Quitline Campaign Banner
Photo Credit: DOH
COMBATTING NON-COMMUNICABLE DISEASES.187
According to a United Nations report, one
(1) out of three (3) Filipinos die from a non-
communicable disease before the age of 70.
Hence, we are undertaking measures to lessen the
exposure of Filipinos to these risks by promoting:
• Measures on Tobacco Control. On May 16, 2017,
I signed EO no. 26,188 prohibiting smoking in
enclosed public spaces and conveyances; and
the sale, distribution, and purchase of tobacco
products to and from minors, and by anyone
within 100 m from the perimeter of facilities
for minors.
To provide a more supportive environment
for those who are attempting to quit tobacco
use, the DOH has implemented the Tobacco
Cessation Program. As of June 30, 2018, 877
out of the 3,782 registrants to the program
succeeded in tobacco cessation; and
• Mental Health. We are committed in promoting
the well-being of our people by ensuring
that mental health is valued, promoted, and
protected, thereby eliminating the stigma
against mental illnesses.
187 DOH, op.cit.
188 Entitled: “Providing for the Establishment of Smoke-Free Environments in Public and Enclosed Places”
189 DOH, op.cit.
190 Entitled: “Providing for the Regulation and Control of the Use of Firecrackers and Other Pyrotechnic Devices”
191 DOH,op.cit.
192 All medical expenses will be shouldered by PhilHealth and the DOH
T H E P R E SI D E N T ’ S R E P O RT 127
TO THE PEOPLE
2016 - 2018
In September 2016, we launched HOPELINE,
a 24/7 phone-based counselling service
for individuals who suffer from crisis and
depression. To further strengthen our
commitment, I signed on June 20, 2018
Republic Act no. 11036 or the “Mental Health
Act,” which establishes a national mental health
policy to enhance the delivery of integrated
mental health services and promote and protect
the rights of persons utilizing psychiatric,
neurologic, and psychosocial health services.
ENSURING PUBLIC SAFETY BY REGULATING
FIRECRACKER USE.189 Since I signed EO no. 28190
on June 20, 2017, we have seen a decrease in
firecracker-related injuries. From December 21,
2017 to January 1, 2018, the DOH recorded 445
firecracker-related injuries, a decrease from the
604 reported injuries in the period December 21,
2016 to January 1, 2017.
Dengue Immunization Program191
When Sanofi issued on November 29, 2017 a medical
advisory regarding the safety and efficacy of Dengvaxia,
we immediately suspended on December 1, 2017 both our
School and Community-based Dengue Immunization
Programs, and thereafter suspended the Certificate of
Product Registration of Dengvaxia.
To assist Dengvaxia recipients and their families, we
heightened surveillance and patient care by setting up
a 24/7 hotline for Dengue concerns. We also adopted a
MOA with Philippine hospital associations providing for
the establishment of Dengue fast lanes in hospitals,
and the implementation of the No Balance Billing
policy for Dengvaxia recipients.192 Other government
interventions include the provision of Dengue kits and
psychosocial counselling to parents and children.
 128 T OWA R D S UPLIFTING
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ENSURING FINANCIAL INCLUSION FOR
ALL FILIPINOS
Our people, especially the marginalized, should
be able to borrow capital, get insured, or save
money in financial institutions such as banks to
enable them to make productive investments.
To achieve financial inclusion in the country,
wherein Filipino households and businesses can
access a wide range of financial products and
services, we undertook the following:
INCREASED ACCESS TO FINANCIAL INSTITUTIONS
AND USAGE OF FINANCIAL PRODUCTS AND
SERVICES.193 Our countrymen enjoyed increased
access to banks in 2017. The number of banks
increased by 5.5 percent, from 11,129 banks in
the fourth quarter of 2016 to 11,744 banks in the
fourth quarter of 2017. The increase was due to the
opening of more banks in regions where they are
needed such as Ilocos, Bicol, and Central Visayas.
The number of deposit accounts has also increased
by 6.8 percent, from 53.5 million deposit accounts
worth PhP10.5 trillion in the fourth quarter of
2016 to 57.1 million deposit accounts worth
PhP11.7 trillion in the fourth quarter of 2017.
With the increase in the number of automated
teller machines (ATMs) nationwide, Filipinos
have better access to their deposited money.
The number of ATMs grew by 6.3 percent, from
19,081 ATMs in the fourth quarter of 2016 to
20,276 ATMs in the fourth quarter of 2017. The
increase was due to the installation of ATMs in
the countryside, particularly in Ilocos Region,
Cagayan Valley, and Eastern Visayas.
On top of this, we also saw an increase in the use
of e-money accounts such as GCash and Smart
Money, which was up by 21.4 percent from 9.4
million users in 2015 to 11.4 million users in 2016.
This has enabled Filipinos to use technology in
193 BSP, July 11, 2018.
ensuring that their financial transactions are
easy, smooth, and reliable.
To address financial inclusion across the
countryside, we have enabled 162 banks with
microfinance operation to serve 1.96 million
micro-entrepreneurs with deposit, insurance, and
credit facilities. Non-financial service providers
such as pawnshops, microfinance institutions, and
transfer companies are able to provide services in
areas where banks are lacking. With their presence,
only eight (8) percent of cities and municipalities
remain unserved.
TIGHTENED POLICY INITIATIVES TO CREATE
AN ENABLING ENVIRONMENT FOR FINANCIAL
INCLUSION. To ensure accessibility, affordability,
and fitness of financial products in the market,
the Bangko Sentral ng Pilipinas (BSP) laid down,
among others, the following initiatives:
• Enhanced our existing regulations on proper
supervision over money transfer operators,
which include remittance agents, remittance
platform providers, and e-money issuers, to
help ensure that our people will have safer and
more efficient remittance or foreign exchange
transactions;
• Subjected virtual currency exchange entities
such as Bitcoin operators to comply with BSP
regulations and ensure effective compliance
with the anti-money laundering rules and risk
management guidelines to combat terrorism
financing and ensure consumer protection,
among others;
• Issued a framework for basic deposit account,
which has a low opening amount (capped
at PhP100), no maintaining balance, no
dormancy charges, and simplified documentary
requirements to address cost and documentation

factors that discourage or prevent our low-
income Filipinos from opening a bank account;
and
• Operationalized the National Retail Payment
System, which promotes safe, convenient,
fast, and more affordable means of making
payments through electronic account-to-
account fund transfers.
PROVIDED MSMEs, FARMERS, AND FISHERFOLK
ACCESS TO FINANCE. We believe that fast,
convenient, and affordable financing for
MSMEs, farmers, and fisherfolk will boost their
productivity. To achieve this, we undertook the
following:
• Released PhP4.32 billion in loans to 17,169
beneficiaries as of 2017 under the Credit Surety
Fund (CSF) Program. This program, which
started in 2008 and institutionalized into law in
2016, serves as an alternative source of financing
for our capital-short entrepreneurs, who are
experiencing difficulty in obtaining loans from
banks due to lack of acceptable collaterals, credit
knowledge, and credit track record;
• Provided loans to our farmers and fisherfolk
through the following:194
`` Production Loan Easy Access (PLEA) Program
provides fast, convenient, and affordable
credit to our small farmers and fisherfolk in
the poorest provinces and indigenous areas
unserved by formal lending institutions.
For the period July 2017 to May 2018,
the government had released PhP618.91
million in loans to 19,751 small farmers and
fisherfolk nationwide. These loans provided
the necessary capital for their production.
For 2018, we approved a PhP1.05 billion
credit fund for the expansion of the PLEA
194 DA, op.cit.
T H E P R E SI D E N T ’ S R E P O RT 129
TO THE PEOPLE
2016 - 2018
Program to increase the area coverage
(targeted to increase to 60 provinces) and
provide additional loan windows;
`` Survival and Recovery (SURE) Assistance
Program is a quick-response, post disaster
emergency and recovery loan assistance
to support the immediate rehabilitation of
agricultural and livelihood activities of small
farmers and fisherfolk affected by natural
calamities and other crisis. For the period
July 2017 to May 2018, we have released
PhP83.40 million in loans to 7,429 small
farmers and fisherfolk, who were affected
by natural calamities, disease outbreaks, and
armed conflicts; and
`` Insurance indemnity worth PhP3.263 billion
was provided to 434,643 claimants affected
by natural calamities, pests, and diseases
through the Philippine Crop Insurance
Corporation (PCIC) from July 2016 to
March 2018. The PCIC also provided
agricultural insurance protection to more
than 2.86 million farmers and fisherfolk in
the same period.
Our people, especially
the marginalized, should
be able to borrow
capital, get insured, or
save money in financial
institutions such as
banks to enable them
to make productive
investments.
 130 T OWA R D S UPLIFTING
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OF THE FILIPINO PEOPLE

Photo Credit: DICT

ENHANCING MOBILITY
AND CONNECTIVITY
8
CHAPTER

Accelerating infrastructure development is key to our

economic growth and wealth redistribution. Building and
linking our islands and communities through a good and
reliable transportation system will enable us to distribute
wealth, expand local businesses, create more jobs, and uplift
the lives of Filipinos.

Consistent with this priority, I vowed to make the next few

years the “Golden Age of Infrastructure” in the Philippines.
We shall pursue the Build, Build, Build program to enhance
our mobility and connectivity, thus spurring development
equitably in the country.
 T H E P R E SI D E N T ’ S R E P O RT 131
TO THE PEOPLE
2016 - 2018

To date, we have increased infrastructure

spending from PhP858.1 billion in 2017 or 5.4
percent of GDP to PhP1,068.4 billion in 2018 or
Davao
General

6.1 percent of GDP.195

Philippines Santos
Manila

MNL to DVO/GSC
5 Days Tahuna

Aside from working doubly hard to complete

various infrastructure projects such as roads,
Manado
Davao
General

bridges, airports, and ports, we are also building Bitung to MNL Santos

5 Weeks DVO/GSC to Bitung

Tahuna
3 Days

new ones to fulfill the needs of our growing Malaysia

Manado

economy. We have identified 75 game-changing

flagship projects for prioritization, approval, and Surabaya to DVO/GSC
roll-out within the current Administration, 32 of Jakarta
7 Days
Indonesia

which are in various stages of implementation.196

Surabaya

Among the 75 projects are the Malolos-Clark

International Airport-Green City Rail Project, Davao/General Santos-Bitung (D/GB) Shipping route map
Photo Credit: DOTr
New Centennial Water Source Project, Chico
River Pump Irrigation Project, Phase 1 of the
Mindanao Railway, the New Cebu International
Container Port, and the Davao, Laguindingan, DEVELOPMENT OF INTER AND
Bacolod, and Iloilo Airports. INTRA-ISLAND CONNECTIVITY197

I have also committed to enhance information PROMOTION OF INCREASED SEA CONNECTIVITY

and communications technology (ICT) in the
country, particularly our mobile and internet
services, to help every citizen improve his/her life
through ICT. To promote competition in the ICT
industry, I made good on my promise to make
way for the entry of a third telecommunications
player. I have also approved the Free Internet
Access in Public Places Act and other initiatives
to improve the ICT sector.
Aside from working doubly hard to
complete various infrastructure
projects such as roads, bridges,
airports, and ports, we are also
building new ones to fulfill the
needs of our growing economy.
AND INTERNATIONAL CONNECTIVITY. On April
30, 2017, we opened a new trade route, the
Davao/General Santos-Bitung (D/GB) Shipping
route, connecting Davao and General Santos
City, Philippines, and Bitung, Indonesia. This has
reduced shipping time from an average of three
(3) to five (5) weeks to just two (2) to three (3)
days. As a result, operational costs were reduced
from US$2,200.00 to US$700.00 per twenty-foot
equivalent unit (TEU), a 214 percent reduction
that is equivalent to US$1,500.00 of savings.
We are also targeting to launch within 2018 a roll-
on roll-off (Ro-Ro) route between Palawan and
Sabah. This route will boost tourism, commerce,
education, and cultural exchange, and facilitate
interconnectivity in the region.

195 DBM, July 19, 2018.

196 Budgeting and financing, detailed engineering design and procurement, and construction.
197 DOTr, op.cit.
 132 T OWA R D S UPLIFTING
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MRT-3
Photo Credit: DOTr
IMPROVEMENT OF RAIL CONNECTIVITY. We are
fast-tracking the improvement of the Metro
Rail Transit (MRT)-3 railway system to ease
the daily suffering of our commuting public in
Metro Manila. We are also building more railway
projects to truly enhance connectivity and spur
development in the country. To make commuting
more comfortable for the Filipino people:
• We are continuously improving the MRT-3. On
April 2, 2018, we rolled out 15 train sets with
three (3) coaches each to manage daily ridership.
On May 9, 2018, we successfully fielded our
18th train set, exceeding our target of 15 train
sets.We engaged a Japanese partner to maintain
and rehabilitate the MRT-3, returning it to its
original design capacity of 20 trains with three
(3) coaches (20x3) by restoring trains that are in
severe condition; and
• We have significantly improved the Philippine
National Railways (PNR) running train
service from the 28 trips/day and 30,000
passengers/day in 2016 to service 50 trips/day
with approximately 50,000 passengers/day in
2017. There are currently two (2) operational
commuter routes, Tutuban-Alabang-Calamba
and Naga-Sipocot in Camarines Sur. The
Caloocan-Dela Rosa service will open and the
Bicol commuter will extend to Pili, Camarines
Sur within July 2018. We also maximized
the availability of trains to serve the whole
southern corridor and decongest road traffic.
We shall continue to improve MRT-3 by
pursuing an unsolicited proposal for its 30-year
operation and maintenance and increasing
the number of trains to accommodate more
passengers.
By 2022, our new commuter PNR trains are
targeted to serve 150,000 passengers/day in the
southern corridor. Parcel cargo service will also
be operational between Legazpi and Manila,
while also accommodating container cargo
between the Port of Manila and the nearby
inland ports.
We are also pursuing other train projects such as
the MRT Line 7, Metro Manila Subway, PNR South
Long Haul, and the Mindanao Railway System (see
Annex B for ongoing and planned rail projects).

PROMOTION OF GREATER AIR CONNECTIVITY.
We are fast-tracking the development of air
transportation in the country by upgrading new
airports and providing convenience to passengers to
promote tourism and economic activities across the
country.
In NAIA, we implemented reforms to reduce
flight delays such as: prioritization of commercial
flights over general aviation; imposition of the
five-minute rule wherein pilots who declare
their readiness to take off must depart within the
prescribed time; and construction of Rapid Exit
Taxiways to allow an aircraft to leave the runway
at higher speed and increase flight movements.
NAIA now ranks 10th among the Most Improved
Airports in the World as announced during
the Skytrax World Airport Awards 2018 in
Stockholm, Sweden in March 2018.
Due to our policy changes and strict
implementation of existing regulations, the
Official Aviation Guide (OAG) gave star ratings
to 10 Philippine airports in 2017. This is due to
The New Terminal Building at the Mactan-Cebu International Airport will accommodate 13 million passengers a year.
Photo Credit: DOTr
T H E P R E SI D E N T ’ S R E P O RT 133
TO THE PEOPLE
2016 - 2018
the reduction in flight delays, which improved
over-all passenger experience. These are the
Iloilo International Airport, Clark International
Airport, Ninoy Aquino International Airport,
Bacolod-Silay Airport, Francisco Bangoy
International Airport (Davao), Mactan-Cebu
International Airport, Daniel Z. Romuladez
Airport (Tacloban), Laguindingan Airport
(CDO), Kalibo International Airport, and Puerto
Princesa International Airport.
We are also improving our airspace security.
We have achieved 100 percent coverage of the
Philippine airspace through the implementation
of the new Communications Navigation
Surveillance / Air Traffic Management (CNS/
ATM) system, which was inaugurated on January
16, 2018. It established an additional 10 satellite-
based CNS/ATM systems. This is an increase
from the three (3) air traffic radars covering only
30 percent of the Philippine airspace in 2016.
Started in 2009, it was originally targeted for
completion by 2016. However, it was only during
my Administration that the implementation of
the project was fast-tracked.
 134 T OWA R D S UPLIFTING
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Further, we completed the following airport
improvement projects:
TA BL E 4 4. COMPLETED AIRPORT IMPROVEMENT PROJECTS
TUGUEGARAO AIRPORT DEVELOPMENT
PROJECT
• Phase 1 includes the expansion and
rehabilitation of its passenger terminal building
(PTB) and widening of the runway
• Phase 2, which shall commence in 2018,
includes the expansion of the existing airport
pre-departure and check-in areas and the
development of its second floor for additional
check-in counters
• Timeline and Status: The expanded and
rehabilitated PTB was inaugurated on March 14,
2018. The airport airfield lighting system project
for night-rating was completed in March 2018
SAN VICENTE AIRPORT (PALAWAN)
• Will accommodate bigger aircraft, e.g., Turbo
Prop Aircraft
• Its PTB can accommodate up to 150 passengers
at any given time, bigger than the average
capacity of community airports that can cater
to only 50 passengers
• Will allow easy access to the country’s “Flagship
Tourism Enterprise Zone” and the “Long Beach”,
which stretches 14.7 km, the longest white sand
beach in the Philippines
• Timeline and Status: Inaugurated on May 10,
2018
Source: DOTr
Other ongoing airport construction and
improvement projects are the New Terminal
Building of the Clark International Airport,
IMPROVED PASSENGER TERMINAL BUILDING
AT THE DANIEL Z. ROMUALDEZ AIRPORT
(TACLOBAN CITY AIRPORT)
• Will address the growing demand for airport
space for Tacloban City
• Expansion of the PTB total floor area from
2,250 sqm to 3,350 sqm (an additional 1,100
sqm) and increase in the number of seats in the
departure area from 360 to 635 seats
• Timeline and Status: Inaugurated on March 16,
2018
REHABILITATED PASSENGER TERMINAL AT
VIRAC AIRPORT
• Will increase Virac Airport’s capacity from
100 to 300 passengers
• Expansion of the ground and second floor
pre-departure areas, and the rehabilitation of
the arrival area
• Timeline and Status: Inaugurated on
June 1, 2018
NEW TERMINAL BUILDING OF THE MACTAN-
CEBU INTERNATIONAL AIRPORT
• Dubbed as the world’s first and friendliest
resort airport, which entails construction
of a passenger terminal building that has
world-class facilities
• Timeline and Status: Inaugurated on
June 7, 2018. Started handling commercial
operations on July 01, 2018
Bicol International Airport, New Bohol Panglao
Airport and the Catbalogan-Buri Airport (see
Annex B for ongoing and planned airport projects).

ENHANCING LAND CONNECTIVITY.198 As we
accelerate infrastructure development, we are
striving to complete more roads that will make
the countryside more accessible and connected
TA BL E 4 5. COMPLETED PUBLIC WORKS PROJECTS, 2017-2018
9.87-KM DAPA PORT – CONSUELO-CORAZON
– STA. CRUZ – STA. FE – LIBERTAD –
CABITOONAN – CATANGAN – GEN. LUNA
ROAD IN SURIGAO DEL NORTE
• Date Completed: January 2017
• Benefits: Enhances the accessibility of
Surigao del Norte as the Surfing Capital
WIDENING OF THE 650-M GOVERNOR
MIRANDA BRIDGE II ALONG THE DAANG
MAHARLIKA, DAVAO DEL NORTE
• Date Completed: April 2017
• Benefits: Reduced travel time from Davao
City to Tagum from 90 minutes to 70 minutes
14.85-KM NAIA EXPRESSWAY PHASE II
FROM NAIA EXPRESSWAY PHASE I TO
PAGCOR ENTERTAINMENT CITY
• Date Completed: April 2017
• Benefits: Reduced travel time between
Skyway and NAIA Terminal 1 from 24 minutes
to eight (8) minutes
Source: DPWH
Widening of the Governor Miranda Bridge II
Photo Credit: DPWH
198 DPWH, July 20, 2018.
T H E P R E SI D E N T ’ S R E P O RT 135
TO THE PEOPLE
2016 - 2018
to markets and services. From 2017 to 2018,
we have completed the following public works
projects:
WIDENING OF A 4.75-KM SECTION OF
RADIAL ROAD 10
• Date Completed: June 2017
• Benefits: Reduced travel time between
Manila and Navotas City from one (1) hour to
30 minutes
140-M DAVAO RIVER BRIDGE (MA-A BRIDGE)
ALONG THE DAVAO CITY DIVERSION ROAD
• Date Completed: April 2018
• Benefits: Reduced travel time between Brgy.
Ulas and Brgy. Buhangin from 80 minutes to
30 minutes
360-M ANDUYAN BRIDGE IN TUBAO, LA
UNION
• Date Completed: May 2018
• Benefits: Connects the Anduyan-Rizal-San
Pascual-Nangalesan and Asin Roads leading
to the Asin Hot Spring in Tuba, Benguet and
Baguio City
 136 T OWA R D S UPLIFTING
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Luzon Spine Expressway Network map
Photo Credit: DPWH
We also enhanced road network capacity
and safety. From July 2016 to June 2018, the
government completed the widening of 1,908 km
of roads and 511 bridges (23,929 m) nationwide.
In addition, we aim to construct more roads
and bridges for a seamless transport system, as
follows:
• Luzon Spine Expressway Network. We are
targeting to construct high standard highways
and expressways in Luzon with a total length
of 834.72 kms, which is about twice the
382.26 kms of existing expressways. Once
completed, travel time from Metro Manila
to San Fernando, La Union will be reduced
from six (6) hours and 55 minutes to three (3)
hours and 10 minutes. Moreover, travel time
from Ilocos to Bicol will be reduced from 19
hours and 40 minutes to eight (8) hours and
15 minutes. (Please see Annex B for the projects
under the Luzon Spine Expressway Network).
• Laguna Lake Highway. We shall also widen
the 10.69-km Laguna Lake Highway with bike
lanes. This will reduce travel time from Taytay
via C-5 to Bicutan from one (1) hour to 30
minutes once completed in 2019. To date, a
9.3-km section has been opened to traffic.
• Metro Manila Logistics Network. In addition
to the 30 existing bridges crossing the Pasig
and Marikina Rivers and the Manggahan
Floodway, which cater to about 1.30 million
vehicles daily, we will construct 12 new bridges
to provide alternative linkages between major
thoroughfares and increase the number of
usable roadways that would decongest traffic in
EDSA and other major roads in Metro Manila.
The following are some of the new bridges to
be constructed across the Pasig and Marikina
Rivers, and the Manggahan Floodway:

`` The Bonifacio Global City-Ortigas Center Link
Road Project involves the construction of the
613.77-lineal meter (lm) Sta. Monica-Lawton
Bridge, which will cross the Pasig River. It
will stretch from Lawton Avenue in Makati
City to Sta. Monica Street in Pasig City. It will
also involve the construction of the 347.66-lm
Lawton Avenue-Global City Viaduct, which
will traverse Lawton Avenue onwards to the
entrance of the Bonifacio Global City. This
will decongest traffic along EDSA and C-5,
particularly along the section of the Guadalupe
and Bagong Ilog Bridges. As of June 2018, 13.79
percent of the project has been accomplished,
and is targeted to be completed in June 2020.
`` The Binondo-Intramuros Bridge is a 734-lm
Steel Arch Bridge connecting Intramuros and
Binondo. Construction started in July 2018 and
is targeted to be completed within 30 months.
Metro Manila Logistics Network
Photo Credit: DPWH
T H E P R E SI D E N T ’ S R E P O RT 137
TO THE PEOPLE
2016 - 2018
We will also rehabilitate and strengthen the
following bridges across the Pasig River:
`` The existing Estrella-Pantaleon Bridge, which
will be replaced by a 506-lm three-span V-shape
rigid frame box girder bridge connecting Estrella
Street at the Makati side to Barangka Drive at
Mandaluyong side. Construction started in July
2018 and is targeted for completion within 23
months; and
`` The Guadalupe and Lambingan Bridges, which
is targeted to start in 2019, will ensure the safety
of about 365,000 motorists who pass by the
Guadalupe Bridge and about 30,257 motorists
traveling by Lambingan Bridge every day.
(For the other bridges under the Metro Manila
Logistics Network to be constructed in 2019,
please see Annex B)
 138 T OWA R D S UPLIFTING
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Inter-Island Linkage Project map
Photo Credit: DPWH
• Increasing Regional Connectivity. Inefficient
transport conditions are adversely affecting
regional development, thereby affecting
our country’s economic growth and global
competitiveness. My Administration aims
to develop programs and projects that will
spur regional economic development and
competitiveness.
`` The Inter-Island Linkage Projects is a series
of short and long-span bridges linking island
provinces to eventually connect Mindanao
and Visayas to Luzon via land travel.
`` The 3.77-km Panguil Bay Bridge that will
connect the City of Tangub in Misamis
Occidental to the Municipality of Tubod in
Lanao del Norte will commence construction
in October 2018. Once completed in 2021,
it will only take 10 minutes to reach Tangub
City from Tubod using the bridge compared
to the 2.5 hours it would take using the 102-
km route via the Tubod-Kapatagan-Molave-
Tangub road. Travel time between Ozamiz
City, Misamis Occidental and Mukas,
Kolambugan, Lanao Del Norte will be reduced
from 2.5 hours using Ro-Ro operations to 20
minutes using the Panguil Bay Bridge.
The Mindanao Road Development Network
(MRDN) Program involves the construction
and improvement of a 2,600.67-km road
network in the Zamboanga Peninsula,
Northern Mindanao, Southern Mindanao,
Central Mindanao, and CARAGA regions. This
will enhance the agribusiness competitiveness
in Mindanao by developing an intermodal
logistics system that will address the constraints
caused by high cost of transport and inadequate
logistics infrastructure, among others.
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• Construction of Bypass and/or Diversion Roads
and Alternate Routes in Highly Congested Areas.
From July 2016 to June 2018, we completed
328 km of bypass and/or diversion roads and
connected 393 km of gaps. Other bypass roads
to be constructed include the Urdaneta City
Bypass Road, Tacloban City Bypass Road, and
the Davao City Coastal Road (see Annex B for
the details on the bypass roads).
• Roads for Trade and Tourism. We are
implementing the Roads Leveraging Linkages
for Industry and Trade (ROLL IT) Program
to further fuel the high growth of domestic
investments and the surge in foreign direct
investments in the country. It also aims to
facilitate balanced development, disperse
industries away from the urban towards the
rural areas, and create more job and income
opportunities for more Filipinos. As of 2018,
PhP12.6 billion has been appropriated for
the construction and upgrading of about 436
km access roads leading to manufacturing,
industries, and trade corridors.
A total of PhP65.8 billion was allocated
from 2016 to 2018 for the construction,
rehabilitation, and upgrading of about 2,721
km of roads leading to declared destinations.
As of June 2018, the government completed
1,312 km access roads leading to declared
tourist destinations; and
comfortably. It will involve, among others,
route rationalization to be responsive to the
demands of commuters; modernization of
PUVs to comply with emission standards; and
provision of training and support programs
for stakeholders who will be affected by the
program.
For instance, transport cooperatives and
corporations can avail of financial assistance,
on top of a government subsidy, to upgrade
their fleet into low-carbon emitting, safe, and
efficient units through the Development Bank
of the Philippine’s (DBP) Program Assistance
to Support Alternative Driving Approaches
(PASADA) Program. We have also set up,
through the Landbank of the Philippines
(LBP), a PhP1 billion financing window for
public utility jeepneys’ driver-operators via the
Special Program for Environment-Friendly
and Efficiently Driven (SPEED) Jeepney
Program. We shall partner with different
private financing institutions in the coming
months to push for the PUVMP’s successful
implementation.

• Modernizing Transportation.199 To complement

these road projects, we launched on June 19,
2017 the Public Utility Vehicle Modernization
Program (PUVMP). It aims to bring about a
modern, well-managed, and environmentally
sustainable transport sector; provide drivers
and operators a stable, sufficient, and
dignified livelihood; and allow commuters to
get to their destinations quickly, safely, and

E-Jeepneys
Photo Credit: DOTr
199 DOTr, op.cit.
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In support of the program, local car To address passengers’ inconvenience during

manufacturers, transport cooperatives, and
transport groups signed an agreement on
February 15, 2018 that would enable transport
groups to enroll their members to cooperatives
for effective fleet consolidation. Manufacturers
also committed to roll out 3,000 modern
jeepneys within the next three (3) months for
the initial implementation of the program.
MRT Line 3 glitches, we increased the number of
routes of the Premium Point-to-Point (P2P) Bus
Transport Service from two (2), namely Makati-
North Avenue and Ortigas-North Avenue, to 20
routes, which now include Laguna, Cavite, Clark,
Antipolo, Pampanga, Zambales, and Pangasinan.
As of July 2018, we have 231 units with special
permits issued by the LTFRB to ply these routes.

Last July 20, 2018, we started the deployment
of about 150 modern PUVs for dispatch to
operators with franchises validated by the
LTFRB. The modern jeepney conforms with
existing environmental and product standards.
It has a higher carrying capacity, provision
for differently-abled passengers, an electric-
powered motor that will generate reduced or
no pollution, and other facilities such as WiFi,
GPS, CCTVs, dash camera, speed limiter, and
automatic fare collection system.
The MMDA has 441 signalized intersections,
268 of which are controlled with a Fiber Optic
Communication System. This links the 268
field facilities to the MMDA Command and
Communications Center, which centrally
operates, controls, and monitors the operation
of the system. Moreover, we installed the
system in 50 additional intersections, which
will be completed within 2018. The signalized
intersection, among others, provide real time
traffic information, reliable traffic service, and

DECONGESTING ROADS, AIRPORTS,

AND PORTS200

We shall continue to prioritize solutions to

address road, airport, and port congestion
through the following initiatives:

ADDRESSING ROAD TRAFFIC CONGESTION.

We created in August 2016 the Inter-Agency
Council for Traffic (i-ACT)201 to ensure unity in
command, control, and coordination in effective
traffic management.

From July to April 2018, the i-ACT has

impounded 1,436 colorum vehicles, issued
53,310 tickets on traffic violations, towed 8,887
illegally parked vehicles, and removed 29,801 P2P Bus operations
illegal vendors along roads and streets. Photo Credit: DOTr

200 DOTr, op.cit; and MMDA, July 17, 2018.

201 Composed of the DOTr (i-ACT chairman), the Metropolitan Manila Development Authority (MMDA) (i-ACT vice-chairman), PCG, PNP-Highway Patrol
Group (HPG), LTO, Land Transportation Franchising and Regulatory Board (LTFRB), AFP, and the Metro Manila Council (MMC).

Proposed Parañaque Integrated Terminal Exchange
Photo Credit: DOTr
systematic management of transportation and
traffic demand.
The Taguig Integrated Terminal Exchange (Taguig
ITX) in FTI-Taguig, formerly known as the South
Integrated Transport System Project, had its
groundbreaking ceremony on January 17, 2018. It
was stalled briefly due to the demand of the ARCA
South Integrated Terminal Inc. (AyalaLand Inc.),
which will build the terminal, for the government
to pay PhP277 million annually for 35 years as
stipulated in the contract. After we convinced them
that they will also benefit from the project, ARCA
finally waived the fees, saving the government
around PhP9.7 billion.
The Taguig ITX aims to establish an intermodal
terminal for provincial buses for a safe and
convenient transfer facility for passengers to and
from Laguna and Batangas, while maximizing
road usage within Metro Manila. Its construction
shall commence in August 2018 and is targeted
for completion by the first semester of 2020. The
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Taguig ITX shall house around 4,000 buses and
accommodate 160,000 passengers daily.
The construction of the 2.9-hectare Parañaque
ITX is finally on track. It will allow road usage
maximization through the reduction of vehicle
volumes, efficient interconnection between
different transport modes and services, and
hassle-free travel experience for the commuting
public. It is 94.80 percent accomplished as of July
2018 and is targeted for completion by August
2018.
ADDRESSING AIRPORT TRAFFIC CONGESTION.
The government is solving airport congestion
through the following measures:
• Increase in flights from the Clark International
Airport (CRK) to decongest NAIA. In 2017,
the airport registered an all-time high of more
than 1.5 million passengers. As of April 2018,
the Airport has been sustaining 332 domestic
and 158 international flights weekly with a daily
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average of 8,000 passengers, making it one of
the busiest airports in the country. For the first
four months of 2018, the airport registered
841,036 passengers; and
• Upgrading of five (5) airports with night-
landing capabilities since 2016. This includes
the Legazpi, Roxas, Dumaguete, Caticlan,
and Tuguegarao Airports. This increased the
number of commercial airports with night-
landing capabilities to 20. By 2022, we target
to night-rate all 42 commercial airports
in the country. This means that domestic
flights departing from NAIA do not have to
be crammed during day time, which would
further reduce flight delays.
The New CNS/ATM Systems have modernized the aging and inadequate
CNS systems.
Photo Credit: CAAP
ADDRESSING PORT TRAFFIC CONGESTION.
Our government continues to improve and
modernize ports nationwide. These port projects
include the:
• Construction of 69,622.99 sqm of back-up area
to hold additional cargo volumes of 3,974,212
MT; installation of additional Ro-Ro ramps
nationwide to accommodate 15,067 Ro-Ro
vessels; and completion of an additional
1,568.70 lm of berth to service 22,769 non-Ro-
Ro vehicles;
• Construction of the Cavite Gateway Terminal in
Tanza, Cavite, which will be the first container
Ro-Ro barge terminal in the country. It is
nearing completion and will be inaugurated
in the third quarter of 2018 to allow the trans-
shipment of cargo from our international ports
in Manila to Cavite via barges. The project,
which has a capacity of 115,000 TEUs, will
reduce the number of trucks plying Metro
Manila roads or approximately 140,000 fewer
truck trips annually. Road traffic will be
reduced by approximately two (2) kilometers
of trucks when the terminal starts operations.
Further, plans are also underway to include
passenger ferry operations from this port to
Manila to lessen the passenger road traffic;
• Construction of the 500-meter berth length
New Cebu International Container Port in
Consolacion, Cebu. Once completed in 2022,
the project will address congestion in the
existing Cebu International Port and reduce
vessels’ waiting time; and
• Implementation of the San Fernando Port
Development Project, which will supplement
the Central Spine Ro-Ro network in the Visayas
Region (Luzon-Mindanao via Mindoro,
Panay, Negros, Cebu, Bohol, and Camiguin).
It involves the construction of the proposed

The Cavite Gateway Terminal will reduce road traffic.
Photo Credit: DOTr
Ro-Ro port in San Fernando in Northern
Cebu. Once completed in 2022, it will reduce
travel time from Luzon to Mindanao and will
establish a direct Ro-Ro route from Batangas to
Cagayan de Oro passing through the province
of Cebu and Panay Island.
(For our other port projects in Cebu, please see
Annex B)
True to my promise of ushering in the golden
age of infrastructure in the country, we shall
continue to embark on massive government
spending on infrastructure, increasing spending
from 5.4 percent of GDP in 2017 to as much as
7.3 percent in 2022, amounting to PhP8 trillion to
PhP9 trillion or about US$160 billion to US$180
billion in infrastructure projects.202
202 NEDA, July 20, 2018.
203 DICT, July 17, 2018.
204 PoPs are slated to serve as the backbone and distribution hubs for internet connectivity for the 967 municipalities connected under the project.
These are in the following areas: Legazpi City; Dagupan City; Tuguegarao City; Mabalacat City; Batangas City; Puerto Princesa City; Cagayan de Oro
City; Davao City; Zamboanga City; Pagadian; Iloilo City; Cebu City; Tacloban City; Calbayog City; Lipa City; Cauayan City; Cotabato City; and Butuan
City.
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BOOSTING INFORMATION AND
COMMUNICATIONS CONNECTIVITY
AND ACCESS203
In a fast-paced and modernized world
where almost everything is digitized, it is
of equal importance to invest in the ICT
and telecommunications sector to increase
productivity and strengthen connectivity in the
country.
The internet has become a part of every
Filipino’s daily life. It has made the exchange of
information easier and allowed a wide means
of communication. Thus, on August 3, 2017,
we enacted into law RA no. 10929 or the Free
Internet Access in Public Places Act, which aims
to provide free access to internet service in all
public places throughout the country. This will
enhance internet accessibility and institutionalize
the provision of internet connectivity in all
public spaces, such as hospitals, train stations,
and airports. Also dubbed as Pipol Konek, it is
the first of its kind in South East Asia in terms
of scope as it is nationwide in coverage, with 18
points of presence (PoP)204 across the Philippines.
As of June 2018, 1,396 live sites, which cover 17
regions, 59 provinces, and 417 municipalities,
were established. A total of 2.54 million unique
devices/users accessed the free Wi-Fi service.
An additional 5,308 sites are expected to be
operational by the first quarter of 2019.
IMPROVING COMPETITIVENESS IN THE INDUSTRY.
In January 2018, we acquired the Connectivity
Unlimited Resources Enterprise (CURE) frequencies
from PLDT at no cost to government. The CURE
was established in 2001 by the Ongpin group and
was granted a 25-year congressional franchise, but
 144 T OWA R D S UPLIFTING
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The National Government Portal home page
only became active in 2006 when the NTC awarded
it with one of the four 3G licenses for free.
In 2008, the PLDT wireless unit, Smart
Communications Incorporated, bought CURE
and used it to launch a mobile service known as
Red Mobile. The PLDT divestment of CURE was
done on the condition that it shall be entitled to
recover a reasonable cost of its investments and
the amount was pegged at PhP3 billion.
However, I totally disagreed with the idea of
government paying PLDT for the return of CURE
frequencies. The PLDT then returned the frequencies
without any cost or condition to the government.
With the CURE frequencies now in government
possession, we can now give it to a potential third
player in the telecommunications industry.
PROMOTING E-GOVERNANCE. Our country has
embraced the importance of e-government
through initiatives to streamline current systems,
thereby helping to ensure effective and efficient
delivery of government services to citizens and
businesses and promote public participation.
These include the following:
• The National Government Portal (NGP),
under which Juan and Juana dela Cruz can
now access 140 published online forms and
156 government services such as applying for
a driver’s license, filing taxes, and renewing
passport by just going to the portal;
• The Government Network (GovNet), which
shall interconnect all government offices
to streamline coordination and increase
efficiency in the delivery of services. Before my
Administration, GovNet connected 160 NGAs
located in the National Capital Region (NCR),
and 14 agencies in Cebu City. In 2017, we have
expanded GovNet to the regions with Regional
GovNet Phase I, covering 319 agencies in seven
(7) regions. The Regional GovNet Phase II will
involve the installation of Fiber Optic Cables
(FOC) and deployment of Virtual Local Area
Network (VLAN) in the following areas:

`` Marawi, Cotabato, Zamboanga, and La Union,
which will be completed by August 2018; and
`` Davao, Cagayan de Oro, Batangas, and Cebu,
which are currently under the pre-bidding stage.
• The Philippine Government’s Cloud First
Policy, which will encourage government offices
to adopt cloud computing as the preferred ICT-
deployment strategy for administrative use and
delivery of online services, thereby optimizing
government ICT resources; and
• The National Government Data Center
(NGDC), which provides centralized servers,
storage facilities, and other infrastructures to
interconnect government agencies, making data
exchange and collaboration among agencies
faster.
JOBS CREATION AND HUMAN CAPITAL
DEVELOPMENT USING ICT. To effectively cater to
the needs of the people, especially those who do not
have access to ICT in our highly digitized society,
we are continuously working on the following:
• Rural Impact Sourcing (RIS) Program (Kapag May
WiFi, May Hanapbuhay). This program capacitates
people in the countryside to do online freelancing
as a means of livelihood using the internet platform.
In 2017, the RIS program produced 534 Online
Filipino Workers; and assisted 381 MSMEs to have
online presence. To date, we have more than 1.5
million Filipino online workers generating at least
PhP3.5 billion in income;
• Next Wave Cities Program. We created more
than 300,000 Information Technology/Business
Process Outsourcing (IT/BPO) jobs in the
countryside through the Next Wave Cities
Program, which develops ICT hubs to serve as
alternative investment destinations; and
• Technology for Education, Employment,
Entrepreneurs, and Economic Development
T H E P R E SI D E N T ’ S R E P O RT 145
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F IGUR E 2 8. TECH4ED PLATFORM
SEGMENTS
e-EduSkills
Delivers learning and provides skills to address the
e-EduSkills
education divide.
e-Assist
Provides learning and continuous skills
development towards digital inclusion for special
e-Assist
secors such as women, PWDs, senior citizens,
OFWs, career shifters, and teachers.
e-Marketplace
Provides greater market reach beyond the
entrepreneurs’ community for exponential
e-MarketPlace economic growth and opportunities.
e-GovServ
Provides direct government services to rural
e-GovServ
communities and other services.
e-Agri
Provides contents and services on agriculture
technologies for farmers and fisher folks.
e-Agri
e-Health
Provides access to basic health information and
Philippine -based health related online resources.
e-Health
Rural Impact Sourcing
Contains modules on foundation of online freelancing,
client management, and online marketing, which are
Rural Impact designed to empower online freelancers.
Sourcing
Gender and Development
Provides contents on women empowerment and
policies for protection of women as well as skills
Gender & Dev’t enhancement for women entrepreneurs, among
others.
Source: DICT
(Tech4ED) Project. The Tech4ED Project aims
to serve as a delivery channel for relevant ICT-
enabled services and content. It shall help promote
the socio-economic development and improve
the quality of life of the unserved and underserved
communities.
A Tech4ED Center is a self-sustaining, shared
facility, which serves as a conduit for the efficient
 146 T OWA R D S UPLIFTING
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delivery of government and other services. Each

Tech4ED Center is provided with access to the
Tech4ED Platform, which has various content
and learning materials classified into eight (8)
segments (see Figure 30).

As of March 2018, 2,161 Tech4ED Centers

are operational, with 103,295 registered users
enjoying access to the contents and services
from the Tech4ED Platform.

IMPROVING CONNECTIVITY AND

TELECOMMUNICATIONS SERVICES. We have
affirmed the following critical roadmaps and
masterplans that set the policy direction towards
the development of the ICT sector:

• National Broadband Plan (NBP). The NBP aims to

improve the overall internet speed, affordability,
and accessibility all over the country.

In support of the NBP, we are building the

Luzon Bypass Infrastructure, an ultra-high-
speed information highway, which involves the
construction of two (2) international cable landing
stations in Poro Point, La Union and in Baler,
Aurora, and a 250-km duct way connecting the two
(2) stations. Facebook will construct a submarine
cable system that will land in these stations.
By end of 2019, the project will provide us with
two (2) terabits per second or two (2) million
megabits per second of aggregate capacity,
connecting the Philippines to global internet
hubs in the United States and mainland
Asia and expanding the capacity for the
government’s connectivity programs. We are
inviting telecommunications operators and
international submarine cable owners to land
new fiber through these government-built
cable landing stations and further improve and
expand our international connectivity.
We are also developing a national fiber
backbone using fiber optic cables owned
We are working on programs to cater to the needs of the people, especially
those who do not have access to ICT in our highly digitized society
Photo Credit: DICT
by the National Transmission Corporation
(TransCo) and managed by the National
Grid Corporation of the Philippines (NGCP).
This fiber backbone will serve as the data
superhighway from Luzon to Mindanao to
deliver internet in government offices, schools,
hospitals, and other public places.
To jumpstart this initiative, a tripartite
agreement among the DICT, TransCo, and
NGCP was signed on June 8, 2018; and
• Digital Terrestrial Television Broadcasting
(DTTB). The Framework of the DTTB Migration
Plan guides the country’s migration from analog
to digital broadcasting. The plan targets the
analog switch off (ASO) in four (4) to six (6)
years (2023) when the household penetration of
DTTB reaches 95 percent in each service area.

The switch to digital transmission aims to
provide a better television viewing experience
for Filipinos and allow more efficient and richer
information dissemination, particularly in
times of disasters and calamities. TV viewers
started to have a better and clearer reception of
the People’s Television Network (PTV4) after its
switch on to the DTTB on February 14, 2018.
PROTECTING CONSUMER RIGHTS AND WELFARE. To
ensure that Juana and Juan will enjoy the benefits of
the use of ICT, we have exerted the following efforts:
• Extended the Prepaid Load Validity. We
implemented a Joint Memorandum Circular
(JMC) on December 20, 2017 that extended
the expiration of unused prepaid credits of
mobile users, regardless of amount, to one (1)
year from date of top-up. Previously, prepaid
loads worth PhP300.00 and below were valid
from three (3) to 75 days while loads of more
than PhP300.00 were valid for 120 days; and
• Lowered Interconnection Charge. To make
voice and short message service (SMS) more
affordable to the public, we signed on July 19,
2018 a Memorandum Circular reducing the
interconnection charges for voice service and
SMS. From PhP2.50 per minute for voice calls,
it will be reduced to PhP0.50, and from PhP0.15
per SMS, it will be reduced to PhP0.05. This will
benefit landline subscribers and users of basic 2G
mobile phones nationwide, majority of whom are
from the marginalized sectors of our society.205
Moving forward, we remain firm in our resolve
to ensure that our telecommunications services
become more reliable, inexpensive and secure.
In November 2017, I ordered the selection of
a third telecommunications player as soon as
possible. For this purpose, I created an oversight
205 Memorandum Circular 05-07-2018, July 19, 2018; NTC, July 21, 2018.
206 Administrative Order no. 11, s. 2018.
T H E P R E SI D E N T ’ S R E P O RT 147
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2016 - 2018
committee for the entry of a new major player
in the public telecommunications market.206
As of July 20, 2018, the oversight committee
had approved the Highest Committed Level of
Service (HCLoS) as the mode for selection of
the third player, and by next week, the DICT
and National Telecommunications Commission
(NTC) will finalize the Terms of Reference
(TOR). The terms will be fair, reasonable, and
comprehensive. It will be inclusive, hence open
to all interested private parties, both foreign and
local. We will not ask the third telco for upfront
payment for the frequency to be awarded.
Instead the third telco shall be selected using
HCLoS based on speed and coverage of internet
connection, and their financial investment. The
chosen entity must provide the best possible
services at reasonably accessible prices. To date,
five (5) telco companies have expressed interest
to become the next major telco player.
However, our efforts to usher in a new major
player will be rendered futile if we do not improve
its odds of success in an industry long dominated
by a well-entrenched duopoly.
Hence, we shall lower interconnection rates
among industry players to lessen the cost to the
consumers as it will also lower the incoming
player’s cost of accessing the existing networks.
It will then create a market environment that is
more conducive to competition, which is crucial
to ensuring a meaningful and lasting solution to
our telecommunication problems.
Moving forward, we
remain firm in our
resolve to ensure that
our telecommunications
services become more
reliable, inexpensive and
secure.
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We are finalizing the draft for the Common With the National
Tower Policy, which will tap tower companies Cybersecurity Plan
for the construction of about 25,000 2022, we will ensure the
telecommunication towers to serve as cell sites. continuous operations
The telecommunication companies shall lease of our nation’s critical
these towers, thereby freeing them from the infrastructure, and public
expenses for building, operating, and maintaining and military networks;
cell sites. This will lower the cost of their services implement cyber resiliency
for our people. Apart from this, the setting up of measures to enhance
common towers will lead to greater competition our ability to respond to
in the industry because big and small operators threats before, during,
will be able to easily locate and use the towers and after attacks; ensure
alike. effective coordination
with law, enforcement
We are taking steps to enable Filipinos to agencies; and promote a
maximize the use of ICT and protect them from cyber-educated society.
possible risks such as cyberattacks and identity
theft, which can deter them from enjoying the
benefits of ICT. With the National Cybersecurity
Plan (NCSP) 2022, we will ensure the continuous
operations of our nation’s critical infrastructure,
and public and military networks; implement
cyber resiliency measures to enhance our ability
to respond to threats before, during, and after
attacks; ensure effective coordination with law,
enforcement agencies; and promote a cyber-
educated society.

We are taking steps to enable Filipinos to maximize the use of ICT

Photo Credit: DICT
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2016 - 2018

C O N C LU SIO N

In ending, may I share with you a quote from Abraham Lincoln, a

great statesman of the old:

“If I were to try to read, much less answer, all the attacks made on me,
this shop [the Presidency] might as well be closed for any other business.
I do the very best I know how – the very best I can; and I mean to keep
doing so until the end. If the end brings me out all right, what’s said
against me won’t amount to anything. If the end brings me out wrong,
ten angels of God swearing I was right would make no difference.”

Daghang salamat ka ninyong tanan!

 150 A N N E X A
SALIENT FEATURES OF THE “BAYANIHAN” FEDERALISM
• STRONG STATE FOUNDATION
`` Establishment of a federal-presidential form
of government;
`` Preamble recognizing a Federal Republic
that is permanent, indissoluble and
perpetual, and prevents secession by any
constituent part;
`` More clearly and comprehensively defined
territory that distinguishes sovereignty from
sovereign rights over areas; and recognizes
sovereign rights over maritime expanse
under international law and extended
continental shelf (Philippine Rise); and
`` Leveling of the political playing field to
guarantee greater citizen participation
by outlawing political dynasties through
self-executory provisions that prohibit
political dynasties up to the second degree
of consanguinity and affinity; dynastic
succession to any elective office at the
national, regional and local levels; relatives
from running for more than one (1) position
except one (1) national and one (1) regional/
local; and prohibiting party-switching
during the term of an elected official and
two years before and after an election.
• STRONG EXECUTIVE BRANCH
`` President and the Vice President elected
nationwide as a team for a four-year term
with one (1) reelection for both, synchronized
with the terms of the members of Congress;
`` Fiscal and economic powers of the President,
and appointment power preserved,
with certain appointments no longer
requiring Commission of Appointments
confirmation;
`` Commander-in-chief and emergency
powers enhanced to deal with new and
emerging threats;
`` The power to declare a state of war no longer
exclusive to Congress, as the President is given
the power to do so in the event Congress is
unable to convene in time of war;
`` “Step-in” powers of the President over the
federated regions when necessary; and
`` All reserved powers lodged in the President.
• MORE RESPONSIVE LEGISLATIVE BRANCH
`` Bicameral Congress retained, with two (2)
senators elected per federated region;
`` 40 percent of seats reserved for party
representatives (20 percent) and party-
list representatives (20 percent) of the
marginalized sectors (farmers, fisherfolks,
labor, urban poor and indigenous peoples);
`` Party-list system reformed to ensure
representation of marginalized sectors;
`` Term of office of four (4) years, with one
reelection;
`` Law-making powers of Congress preserved;
`` Laws of regional and local application only
shall be the sole domain of the legislative
assemblies in the federated regions;
`` Contempt power is checked; detained
resource persons can seek relief from
appropriate courts;
`` Senate and House Electoral Tribunals
abolished, and electoral contests transferred to
the jurisdiction of the Federal Electoral Court;
`` Impeachment power transferred to the
Constitutional High Court created under
the Judicial Branch; and
`` Tax exemption extended to Muslim places
of worship (masajid) and educational
institutions (madaris).
• JUDICIAL BRANCH ABLE TO DELIVER JUSTICE
ON TIME
`` Four (4) High Courts created to unclog the
Supreme Court and speed up resolution of
appeal cases:

ƒƒ Supreme Court for criminal, civil and
other cases;
ƒƒ Constitutional High Court for issues of
constitutionality, involving candidates
for the President and Vice President, and
impeachment;
ƒƒ Administrative High Court as appellate
court for decisions of agencies with quasi-
judicial powers, including impeachment of
members of the Constitutional High Court;
and
ƒƒ Electoral Court for elections-related
disputes involving candidates for the
President, the Vice President, members of
Congress, and other cases relative to the
conduct of the elections.
`` The Judicial and Bar Council reorganized to
be the Judicial Appointments and Disciplinary
Council, to include representatives from
the four (4) High Courts, Congress, Civil
Service Commission, Commission on Audit,
Department of Justice and the private sector;
and
`` Introduced Judicial Counsel, which allows
the Executive and Legislative branches to
seek the advisory opinion on matters of
transcendental national importance.
• ECONOMICALLY VIABLE FEDERATED REGIONS
`` Asymmetric design for the Bangsamoro and
the Cordillera to meet their identity-based
demand, while other federated regions will
have symmetrical design and structure; and
`` Creation and structure of the federated
regions are economically viable and
sustainable.
• POWER SHARING
`` Federal Government given exclusive
powers over national defense and security,
national police, foreign affairs, foreign
trade, determination of national economic
policies (including ensuring anti-monopoly/
oligarchy and fair competition);
T H E P R E SI D E N T ’ S R E P O RT 151
TO THE PEOPLE
2016 - 2018
`` Powers relating to promotion of regional
economies and government service delivery
shared, with taxation shared to a limited
extent;
`` Limited exclusive powers given to federated
regions; and
`` Supremacy of federal powers upheld using
“reserved” and “step-in” executive powers
when necessary.
• LEVELLING OF ECONOMIC PLAYING FIELD
`` Self-executory provisions that:
ƒƒ Prohibit economic monopolies, oligopolies,
cartels, and anti-competitive market
structures;
ƒƒ Prohibit the grant of any undue advantage
to any enterprise;
ƒƒ Ensure fair and free competition;
ƒƒ Mandate the State to establish equal legal
conditions for all enterprises and entities;
ƒƒ Create a constitutional Federal competition
commission with enough powers to go
after monopolies, oligopolies, and cartels,
to ensure competition;
ƒƒ Accelerate economic growth through
flexible economic liberalization by leaving
the determination to Congress; and
ƒƒ Disallow foreign ownership of land but
allow 25-year leases for business.
`` Socio-economic empowerment of the poor
through :
ƒƒ Expansion of the Bill of Rights to include
socioeconomic rights and environmental
rights;
ƒƒ Continuation of the Agrarian reform
program at the federal level; and
ƒƒ Participation in the political process
assured through the reformed party-list
system and proportional representation.
Source: Consultative Committee to Review the 1987 Constitution
 152 A N N E X B

ONGOING AND PLANNED INFRASTRUCTURE PROJECTS

R A I LWAY S

PROJECT DESCRIPTION TIMELINE AND STATUS

MRT Line 7 ƒƒ Construction of a 22-km line that will connect North ƒƒ Project schedule: 2016-
Avenue in Quezon City to the City of San Jose Del Monte, 2020
Bulacan.
ƒƒ 30.72% physical
ƒƒ Shall have 14 stations and will service 300,000-800,000 accomplishment as of May
passengers in Metro Manila, Bulacan, and Rizal. 2018.

LRT-2 East ƒƒ Construction of a 4-km extension of the existing ƒƒ Project schedule: 1st
Extension LRT-2 System from Santolan, Pasig City to Masinag in quarter of 2015-4th quarter
Antipolo, Rizal by building two (2) additional stations, of 2019
the Emerald station, in Cainta, Rizal, and Masinag
station, in Antipolo City.
ƒƒ Once completed, commuting time from Masinag in
Antipolo to Claro M. Recto in the city of Manila will be
significantly cut by 30 to 40 minutes from an average of
three (3) hours of driving on the road.
ƒƒ Is expected to accommodate 80,000 passengers/day.

Common Station ƒƒ Will connect the four (4) main lines in Metro Manila: ƒƒ Groundbreaking was on
MRT-3, LRT-1, MRT-7, and the Metro Manila Subway September 29, 2017 and
construction started in
ƒƒ Divided into three (3) parts: (1) Area A – Additional one (1) 2018.
Station for LRT-1 and MRT-3, (2) Area B – Atrium which
will connect Area A and Area C, (3) Area C – Terminal ƒƒ Targeted for completion in
Station of MRT-7. 2019.
ƒƒ Was finally set into motion after eight (8) years of
deadlock.
ƒƒ The 13,700-square meter (sqm) project will have a
spacious concourse area that will facilitate seamless
transfer of passengers from one line to another,
benefiting a greater number of commuters.
ƒƒ To be built between SM North EDSA and Trinoma, a
location agreed upon by concerned parties.
 T H E P R E SI D E N T ’ S R E P O RT 153
TO THE PEOPLE
2016 - 2018

PROJECT DESCRIPTION TIMELINE AND STATUS

LRT-1 Cavite ƒƒ Construction of an 11.7-km extension that will connect ƒƒ Project schedule: 2018-2022
Extension the current LRT-1 from Baclaran to the Niog area in ƒƒ Contract for the acquisition
Bacoor. of 120 new LRVs for the
ƒƒ Will reduce travel time from Bacoor to Manila from over LRT-1 South Extension
two (2) hours to about 20 minutes. Project has been signed
and production is ongoing
ƒƒ Pre-construction activities,
which include Road Right-
of-Way Acquisition (RROW)
acquisition, relocation, and
procurement for the depot
works is ongoing

Metro Manila ƒƒ Construction of a 35-km subway with 16 stations (from ƒƒ Project schedule: 4th
Subway Quirino Highway corner Mindanao Avenue to NAIA) that quarter of 2018-full
will connect the north and south portions of Manila. operation by 2025 (with
partial operability by 2022)
ƒƒ Will reduce travel time from Quezon City to Taguig from
one (1) hour and 50 minutes to 35 minutes.

Mindanao Railway ƒƒ Its Phase 1 involves the construction of a 102.28-km ƒƒ Project schedule: 3rd
System line, which will have eight (8) stations connecting quarter 2018-2nd quarter
Tagum, Davao, and Digos cities. 2021 (Phase 1)
ƒƒ Will reduce travel time from Davao del Norte to Davao ƒƒ The Appropriations
del Sur from 3.5 hours to 1.3 hours. Committee of the House
of Representatives has
ƒƒ Part of the entire 1,530-km circumferential and spur rail earmarked an initial
lines that will connect Davao Region, Surigao and Iligan. amount of PhP6.58 billion
to jumpstart the project.
ƒƒ First rail system outside Luzon that will allow the
cheap, reliable, and fast movement of goods that would
increase incomes and value of products in Mindanao.

PNR North ƒƒ Phase 1 (Tutuban-Malolos) is a 37.6-km segment with 10 ƒƒ Project schedule: 1st
(Manila-Clark) stations that can accommodate 340,000 passengers in quarter 2018-1st quarter
its opening year. 2022
ƒƒ Phase 2 (Malolos-Clark) is a 70-km segment with seven ƒƒ Pre-construction activities
(7) stations. for Phase 1 are ongoing
ƒƒ Expected benefits: ƒƒ Actual construction will
start in November 2018
ƒƒ Phase 1 – will allow commuters from Tutuban to reach
Malolos in 35 minutes compared to approximately two
(2) hours by bus or car via McArthur Highway.
ƒƒ Phase 2 - will allow commuters to reach the Clark
International Airport from Metro Manila in 55 minutes
compared to two (2) hours by private vehicle via
expressway.
 154 A N N E X B

PROJECT DESCRIPTION TIMELINE AND STATUS

PNR South ƒƒ 56-km railway project that will link Metro Manila and ƒƒ Construction will start in
Commuter Laguna with a mass transportation railway system, 2019 and will be completed
which can service 460,000 riders daily. in 2022.
(Manila -
ƒƒ Will cut travel time from three (3) to one (1) hour. ƒƒ Ongoing resettlement
Calamba) activities and Detailed
Engineering Design (DED).

PNR South Long ƒƒ Construction of a 639-km long-haul passenger and ƒƒ Project Schedule:
Haul freight rail from Manila to Batangas, Albay, and 2019-2023 with partial
Sorsogon, which can service 100,000 passengers daily. operations starting 2022
(Manila-Bicol)
ƒƒ Will cut travel time from Manila to Bicol from twelve (12) ƒƒ Ongoing resettlement
a.k.a PNR Bicol hours via car to just six (6) hours. activities and preparation
of bidding documents for
the project management
consultant.
Source: DOTr

AIRPORTS

PROJECT DESCRIPTION TIMELINE AND STATUS

New Terminal ƒƒ Entails the construction of a 101,977-sqm New Terminal ƒƒ Groundbreaking and
Building of Building, which marks the start of finally expanding and capsule-laying was held on
the Clark developing Asia’s next premier gateway. December 20, 2017.
International ƒƒ Spanning around 101,977 sqm, it is designed to ƒƒ Targeted for completion by
Airport (CIA)1 accommodate an additional eight (8) million passengers the 2nd quarter of 2020.
every year, increasing operational capacity of the CRK
to 12.2 million passengers per year.
ƒƒ Expected to decongest the Ninoy Aquino International
Airport.

Operation and ƒƒ Tender process for the selection of the concessionaire ƒƒ Target date of award is in
Maintenance for the CIA O&M is ongoing with nine (9) bidders September 2018.
(O&M) of the CIA2 participating.

New Bohol ƒƒ Designed to be the country’s first eco-airport and ƒƒ Commercial operations will
(Panglao) Airport “Green Gateway to the World,” and shall serve as the start by August 2018.
premiere gateway to Panglao Island.
ƒƒ 80% complete as of March
ƒƒ Its PTB is expected to accommodate two (2) million 2018.
passengers per year compared to the 800,000
passengers currently being accommodated by the
Tagbilaran Airport.
195 BCDA, July 17, 2018.
196 BCDA, op.cit.
 T H E P R E SI D E N T ’ S R E P O RT 155
TO THE PEOPLE
2016 - 2018

PROJECT DESCRIPTION TIMELINE AND STATUS

Bicol ƒƒ Construction of a 148-hectare airport in Daraga, Albay ƒƒ Will start commercial

International and will have a 2,500-meter runway strip with a scenic operations in 2022.
Airport view of Mount Mayon.
ƒƒ 50% actual
ƒƒ Will replace the Legazpi Airport. accomplishment as of
June 2018.

Catbalogan-Buri ƒƒ Completion of air safety, civil, and other improvement ƒƒ DBM has approved DOTr’s
Airport works (e.g., construction of perimeter fence, strip grade request of an additional
correction) on the airport. PhP150 million to complete
the required PhP450 million
for the project, to be
included in the proposed
2019 DOTr budget.

ƒƒ Improvement of facilities
is under procurement, with
implementation to start in
August 2018.

ƒƒ Target for completion by

2020.
Source: DOTr and BCDA

L U Z O N S P I N E E X P R E S S WAY N E T W O R K

PROJECT DESCRIPTION TIMELINE AND STATUS

Tarlac- ƒƒ 89.31-km expressway from Tarlac City to Rosario, La ƒƒ The 10.10-km Binalonan
Pangasinan- Union. to Pozorrubio section
La Union was opened to traffic in
ƒƒ Will reduce travel time between the two (2) areas from December 2017.
Expressway 3.5 hours to one (1) hour, benefitting 20,000 travelers
(TPLEX) per day. ƒƒ The last segment, the
10.92-km Pozzorubio,
Pangasinan to Rosario, La
Union section, is targeted
to be opened in June 2019.

Central Luzon ƒƒ 30-km, four-lane expressway from Tarlac City to ƒƒ Construction started in May
Link Expressway, Cabanatuan City, Nueva Ecija. 2016.
Phase I ƒƒ Will decongest traffic along the Daang Maharlika by ƒƒ Targeted to be completed
about 48 percent, reduce travel time from 70 minutes to in July 2020.
20 minutes, and benefit 11,200 motorists per day.
 156 A N N E X B

PROJECT DESCRIPTION TIMELINE AND STATUS

Arterial Road ƒƒ A 24.61 km, two-lane road. ƒƒ 14.65 km was completed in

(Plaridel) Bypass November 2012.
ƒƒ Travel time between Burol, Balagtas and Maasim, San
Project Rafael in Bulacan was reduced from 69 minutes to 24 ƒƒ The remaining 9.96 km was
minutes, benefiting 15,132 travelers per day. completed in May 2018.
ƒƒ To cope with the future
traffic demand in the area,
the government will widen
the bypass road from two
(2) lanes to four (4) lanes.

Southeast ƒƒ 34-km expressway from Skyway FTI, Parañaque City to ƒƒ Pre-construction activities
Metro Manila Batasan, Quezon City. including Right-of-Way
Expressway, C-6 (ROW) acquisition are now
ƒƒ Will reduce travel time from Bicutan to Batasan from ongoing.
(Phase I) one (1) hour and 50 minutes to 26 minutes and will
benefit 42,477 to 88,338 motorists per day. ƒƒ For completion in 2022.

North Luzon ƒƒ 8.0-km, four-lane expressway from C3 Road in Caloocan ƒƒ Targeted for completion in
Expressway- City to Sta. Mesa, Manila. April 2021.
South Luzon ƒƒ Will connect to a common alignment with the Skyway
Expressway Stage 3.
(NLEX-SLEX)
Connector Road ƒƒ Will reduce travel time between SLEX and NLEX from
1.5 to two (2) hours to only 15 to 20 minutes, benefitting
35,000 travelers per day.

NLEX Harbor ƒƒ 5.58-km, six-lane elevated road connecting McArthur ƒƒ As of April 30, 2018, nearly
Link, Segment 10 Highway and C3. half of the project has been
accomplished.
ƒƒ Will decongest Metro Manila by providing access to
NLEX without passing through EDSA or the Balintawak ƒƒ Expected to be completed
Toll Plaza. by January 2019.
ƒƒ Travel time from Valenzuela City to C3 Caloocan City
from more than one (1) hour to only five (5) minutes,
benefitting 20,000 motorists per day.

NLEX Harbor ƒƒ Will provide direct access between the port area and ƒƒ Construction started in
Link, R-10 Exit the northern provinces of Luzon. March 2018 and is targeted
Ramp for completion in June
ƒƒ Will shorten travel time from the port area to NLEX from
2019.
one (1) to one (1) hour and 30 minutes to only 10 minutes.

NLEX Harbor ƒƒ 8.35-km link which will reduce travel time from ƒƒ Targeted for completion in
Link, Segment Mindanao Avenue to Commonwealth Avenue from 45 2022.
8.2 minutes to 10 minutes, benefitting 45,000 motorists per
day.
 T H E P R E SI D E N T ’ S R E P O RT 157
TO THE PEOPLE
2016 - 2018

PROJECT DESCRIPTION TIMELINE AND STATUS

Metro Manila ƒƒ 14.8-km road that will connect Balintawak, Quezon City ƒƒ Targeted for completion in
Skyway Stage 3 to Buendia, Makati, decongesting EDSA and other major 2020.
roads in Metro Manila, e.g., Quezon Avenue, Araneta
Avenue, Nagtahan, and Quirino Avenue, by as much as
55,000 vehicles daily.

ƒƒ Will reduce travel time from Buendia to Balintawak from

two (2) hours to 15 to 20 minutes.

Manila Cavite ƒƒ 7.74-km expressway that will reduce travel time from ƒƒ Targeted for completion in
Toll Expressway R-1 Expressway to SLEX/C5 from 40 minutes to 10 March 2020.
Project (MCTEP), minutes.
C-5 South Link
Expressway
Project,

Cavite Laguna ƒƒ 45.29-km expressway, which will connect Cavitex in ƒƒ Started in July 2017 and is
Expressway Kawit, Cavite and the SLEX-Mamplasan Interchange in targeted for completion in
Biñan, Laguna. July 2020.
ƒƒ Will reduce travel time between Cavitex and SLEX from
1.5 hours to 45 minutes.

South Luzon ƒƒ 56.87-km expressway extension from Sto. Tomas, ƒƒ Targeted for completion
Expressway Batangas to Tayabas/Lucena, Quezon in 2021.
(SLEX) Toll Road ƒƒ Will facilitate faster and safer travel to Laguna,
4 Batangas, Quezon, and the Bicol Region, reducing travel
time from four (4) hours to one (1) hour.
ƒƒ Will benefit 17,000 travelers per day.

Quezon-Bicol ƒƒ 180-km Quezon-Bicol Expressway, and the 16-km

Expressway and
Camarines Sur
Camarines Sur Expressway that will reduce travel time
from Quezon Province to Camarines Sur from five (5) –
Expressway hours to two (2) hours.

Source: DPWH
 158 A N N E X B

BRIDGE PROJECTS TO
EASE TRAFFIC CONGESTION IN METRO MANIL A
PROJECT DESCRIPTION

Pasig River and Manggahan Floodway Bridges Construction Project

North and South Harbor Bridge 2,026-lm bridge, which will connect the North Harbor and the South Har-
bor.

Palanca-Villegas Bridge 438.1-lm bridge, which will link A. Villegas St. and Carlos Palanca St.

Beata-Manalo Bridge 637-lm bridge, which will connect Beata St. and Padre Jacinto Zamora
St. and Felix Manalo St. along the Pasig River.

Blumentritt-Antipolo Bridge 364-lm bridge, which will link Antipolo St., Makati City and Coronado St.,
Mandaluyong City.

Eastbank-Westbank 200-lm bridge along the Manggahan Floodway, which will connect East-
bank Dike Road and Westbank Dike Road in Pasig City.
Bridge 1

Marikina River and Manggahan Floodway Bridges Construction Project

J.P. Rizal-Lopez Jaena Bridge 594.2-lm bridge, which will connect J.P. Rizal Street and Lopez Jaena
Street in Marikina City.

J.P. Rizal-St. Mary Bridge 2,178.2-lm bridge, which will connect J.P. Rizal Street and A. Bonifacio
Avenue in Marikina City.

Marikina-Vista Real Bridge 414.9-lm bridge, which will link Kabayani Road and Stockholm and Delhi
Streets along the Marikina River.

Mercury-Evangelista Bridge 527.8-lm bridge, which will connect Mercury Avenue in Quezon City and
Evangelista Avenue in Pasig City.

Eastbank-Westbank Bridge 2 929.8-lm bridge along the Manggahan Floodway, which will link Eastbank
Dike Road and Westbank Dike Road in Cainta, Rizal.
Source: DPWH
 T H E P R E SI D E N T ’ S R E P O RT 159
TO THE PEOPLE
2016 - 2018

BYPASS AND/OR DIVERSION ROADS

PROJECT DESCRIPTION TIMELINE

Urdaneta City ƒƒ 7.17-km road will allow faster and safer ƒƒ Targeted for completion in 2019.
Bypass road movement of people, goods, and products
between Region I and Region III, and will
support livelihood and tourism in Urdaneta
City.
ƒƒ Travel time from Villasis town proper to
Binalonan will be reduced from 1 hour to 30
minutes.

Tacloban City ƒƒ 6.98-km from Brgy. Diit-Tula to Brgy. Caibaan, ƒƒ Targeted for completion in 2019
Bypass Road Tacloban City will reduce travel time from
.
Tacloban City to Palo, Leyte from 1 hour and 30
minutes to 30 minutes.

Cagayan de Oro ƒƒ 12.77-km road will help decongest traffic ƒƒ Targeted for completion in 2019.
Coastal Road condition of the existing city roads.
ƒƒ Travel time between Gusa, Cagayan de Oro City
and Igpit, Misamis Oriental will be reduced from
48 minutes to 23 minutes.

Bacolod Negros ƒƒ 21.8-km will serve as an alternate road ƒƒ Targeted for completion in 2022.
Occidental bypassing the busy Bacolod City Central
Economic Business District.
Highway ƒƒ Will decongest traffic along the Bacolod South
Road, reducing travel time from the boundary
of Bacolod City at Barangay Sum-Ag to the
Bacolod-Silay Airport Access Road from one (1)
hour and 15 minutes to 25 minutes .

Metro Cebu ƒƒ 73.75-km expressway will reduce travel time ƒƒ Targeted for completion in 2022.
Expressway from Danao City to Naga City from 3 hours to
one (1) hour and 10 minutes.

Davao City ƒƒ Construction, opening, and asphalt paving ƒƒ Targeted for completion in 2021.
Coastal Road of 18.21-km road (with bike lanes) and
construction of seven (7) bridges.
ƒƒ Will serve as an alternative route to the
currently congested Davao-Cotabato Road en
route to the Davao City center.
 160 A N N E X B

PROJECT DESCRIPTION TIMELINE

Davao City ƒƒ Construction of a 44.6-km bypass road with ƒƒ Targeted for completion in 2022.
Bypass 2.3-km tunnel.
Construction ƒƒ Will reduce travel time from one (1) hour and
Project Phase I 44 minutes via Pan-Philippine Highway and
Diversion Road to only 49 minutes via the
Davao City Bypass road.

Samar Pacific ƒƒ 11.6-km road from Junction Simora to Junction ƒƒ Started in April 2018.
Coastal Road Palapag segment of Samar Pacific Coastal
Road in Palapag, Northern Samar. ƒƒ Targeted for completion in March
Project 2020.
ƒƒ Will complete the circumferential road of
Samar Island, benefiting motorists from the
so-called “Pacific Coastal” towns heading to
the provincial business center of the capital
town of Catarman and vice versa. 

Source: DPWH

TA B L E 6 . C E B U P O R T P R O JE CTS
PROJECT STATUS

Construction of Pier 4, Cebu ƒƒ Completed on November 03, 2017 and turned over to the Cebu Port Authority
Baseport port operations for use since December 2017. It accommodates the
domestic containerized cargo from other Visayas and Mindanao ports.
ƒƒ A new Pier 5 project located in Berth 2 of the CIP is projected to start in
2018. Its contract is scheduled to be awarded in July 2018. Targeted to
be completed in 2019, it shall expand the CIP by an additional area of 1.2
hectare, thereby allowing the CIP to have an additional capacity of 4,000
TEUs. The project shall accommodate two (2) additional foreign vessels.

Expansion of Back-Up Area ƒƒ Phase 1 expansion commenced on August 31, 2017.

at Berth 7, Cebu Baseport ƒƒ Phase 2 of the project shall begin once Phase 1 is completed.

Construction of additional ƒƒ Involves four (4) locations:

Ro-Ro ramps
`` Danao and Hagnaya are due for bidding;
`` Toledo is under detailed engineering; and
`` Tabogon is 35% complete as of February 2018.
Source: DOTr

L I ST OF AC RON YM S
4PS Pantawid Pamilyang Pilipino
Program
8888 CCC 8888 Citizens’ Complaint
Center
AFP Armed Forces of the
Philippines
AI Avian Influenza
ALS Alternative Learning System
ALS-EST ALS-Education and Skills
Training Program
AO Administrative Order
ARBS Agrarian Reform Beneficiaries
ARMM Autonomous Region in
Muslim Mindanao
ARTA Anti-Red Tape Act
ASAP At Source and Processing
ASEAN Association of Southeast
Asian Nations
ASO Analog Switch Off
ATMS Automated Teller Machines
AWTIP Angat Water Transmission
Project
AY Academic Year
BADAC Barangay Anti-Drug Abuse
Council
BALAI Building Adequate, Livable,
Affordable, and Inclusive
Filipino Communities
BATAS Bureau of Customs’ (BOC)
Action Team Against
Smugglers
BBWSP Bulacan Bulk Water Supply
Project
BCDA Bases Conversion and
Development Authority
BCM Bilateral Consultation
Mechanism
T H E P R E SI D E N T ’ S R E P O RT 161
TO THE PEOPLE
2016 - 2018
BFP Bureau of Fire Protection
BI Bureau of Immigration
BIFF Bangsamoro Islamic Freedom
Fighters
BIR Bureau of Internal Revenue
BLA Bilateral Labor Agreements
BMCRRP Bangon Marawi
Comprehensive
Rehabilitation and Recovery
Plan
BOI Board of Investments
BPLO Business Permits and
Licensing Office
BPLS Business Permits and
Licensing System
BR Board Resolution
BSP Bangko Sentral ng Pilipinas
BTC Bangsamoro Transition
Commission
BTR Bureau of Treasury
CAAP Civil Aviation Authority of
the Philippines
CAB Civil Aeronautics Board
CADAC City Anti-Drug Abuse
Council
CAR Cordillera Administrative
Region
CARS Comprehensive Auto
Resurgence Strategy
CBRP Community-Based
Rehabilitation Program
CCAM-DRR Climate Change Adaptation,
Mitigation, and Disaster Risk
Reduction Cabinet Cluster
CCTVS Closed-Circuit Television
CDO Cagayan de Oro
 162 L I ST OF AC RON YM S
CEZA Cagayan Economic Zone
Authority
CFLC Community Fish Landing
Centers
CGMS-SUCS Cash Grant to Medical
Students in SUCs
CHED Commission on Higher
Education
CIP Cebu International Port
CLIP Comprehensive Local
Integration Program
CLOAS Certificates of Land
Ownership Award
CMP Community Mortgage
Program
CNS/ATM Communications Navigation
Surveillance / Air Traffic
Management
CNTS Communist Party of the
Philippines (CPP)-New
People’s Army (NPA)
terrorists
CNY Chinese Yuan
COA Commission on Audit
COC Code of Conduct in the SCS
COMELEC Commission on Elections
CONCOM Consultative Committee
to Review the 1987
Constitution
CPCS Compensation and Position
Classification System
CPP-NPA-NDFP Communist Party of the
Philippines-New People’s
Army-National Democratic
Front of the Philippines
CRK Clark International Airport
CSC Civil Service Commission
CSF Credit Surety Fund
CSIS Charity Service Information
System
CTRP Comprehensive Tax Reform
Program
CURE Connectivity Unlimited
Resources Enterprise
CY Calendar Year
DA Department of Agriculture
DAO Department Administrative
Order
DAR Department of Agrarian
Reform
DATRC Drug Abuse Treatment and
Rehabilitation Centers
DATRC-PMO Drug Abuse Treatment and
Rehabilitation Centers –
Project Management Office
DBM Department of Budget and
Management
DBP Development Bank of the
Philippines
DDB Dangerous Drugs Board
DENR Department of Environment
and Natural Resources
DEPED Department of Education
DFA Department of Foreign
Affairs
D/GB Davao/General Santos-Bitung
DICT Department of Information
and Communications
Technology
DILEEP DOLE Integrated Livelihood
and Emergency Employment
Program
DILG Department of the Interior
and Local Government
DIME Digital Imaging for
Monitoring and Evaluation

DND Department of National
Defense
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOJ Department of Justice
DOLE Department of Labor and
Employment
DOST Department of Science and
Technology
DOT Department of Tourism
DOTR Department of
Transportation
DPWH Department of Public Works
and Highways
DRMIS Disaster Response
Management Information
System
DSWD Department of Social
Welfare and Development
DTI Department of Trade and
Industry
DTO Drug trafficking organization
DTTB Digital Terrestrial Television
Broadcasting
EAICS Expanded Assistance
to Individuals in Crisis
Situations
EBPLS Electronic Business Permits
and Licensing System
ECCS Environmental Compliance
Certificates
E-CLIP Enhanced CLIP
EC Employees’ Compensation
EDSA Epifanio de los Santos
Avenue
EEZ Exclusive Economic Zone
T H E P R E SI D E N T ’ S R E P O RT 163
TO THE PEOPLE
2016 - 2018
EFTA European Free Trade
Association
EICC Energy Investment
Coordinating Council
EPP Extended Payment Period
EPRS Electronic Premium
Remittance System
ERC Energy Regulatory
Commission
EU European Union
EWBS Emergency Warning
Broadcast System
EO Executive Order
FDAPP Family Drug Abuse
Prevention Program
FDI Foreign Direct Investment
FFWS Flood Forecasting and
Warning Systems
FOC Fiber Optic Cables
FOI Freedom of Information
FRIMP Flood Risk Management
Project
FRP Fiberglass Reinforced Plastic
FSIC Fire Safety Inspection
Certificates
FTAS Free Trade Agreements
FTI Food Terminal Incorporated 
FTLS Fair Trade Laws
FY Fiscal Year
GAA General Appropriations Act
GCG Governance Commission for
GOCCs
GDP Gross Domestic Product
GEMP Government Energy
Management Program
GFIS Government Financial
Institutions
 164 L I ST OF AC RON YM S
GHAS Ground-handling agencies
GL Guarantee Letters
GMMA Greater Metro Manila Area
GOCCS Government-Owned and-
Controlled Corporations
GPS Global Positioning System
GOVNET Government Network
GSIS Government Service
Insurance System
GSP General System of
Preferences
GSP+ Generalized Scheme of
Preferences Plus
HB House Bill
HCLOS Highest Committed Level of
Service
HFEP Health Facilities
Enhancement Program
HPG Highway Patrol Group
HRH Human Resource for Health
HUDCC Housing and Urban
Development Coordinating
Council
I-ACT Inter-Agency Council for
Traffic
ICAD Inter-Agency Committee on
Anti-Illegal Drugs
ICT Information and
Communications
Technology
IDPS Internally Displaced People
IEDS Improvised Explosive
Devices
IEMOP Independent Electricity
Market Operator of the
Philippines
IFSAR Interferometric Synthetic
Aperture Radar
IMAP Individual Medical Assistance
Program
IMO Independent Market
Operator
IRR Implementing Rules and
Regulations
ISIS Islamic State in Iraq and Syria
IT-BPM Information Technology-
Business Process
Management
IT/BPO Information Technology/
Business Process Outsourcing
I3S Inclusive Innovation
Industrial Strategy
IUU Illegal, Unreported, and
Unregulated
ITX Taguig Integrated Terminal
Exchange
JAO Joint Administrative Order
JEC Joint Economic Commission
JHS Junior High School
JICA Japan International
Cooperation Agency
JMC Joint Memorandum Circular
JRMP II Jalaur River Multipurpose
Project Phase II
KEPCO Korea Electric Power
Corporation
KMME Kapatid Mentor ME
KM Kilometers
KRAS Key Result Areas
KSA Kingdom of Saudi Arabia
LANDBANK Landbank of the Philippines
LGUS Local Government Units
LINGAP Libreng Gamot para sa Masa
LINGAP SA MASA Lingap at Gabay Para sa May
Sakit

LLDA Laguna Lake Development
Authority
LM Lineal Meter
LNG Liquefied Natural Gas
LTFRB Land Transportation and
Regulatory Board
LTO Land Transportation Office
LUCS Local Universities and
Colleges
M Meters
MADAC Municipality Anti-Drug
Abuse Council
MAIP Medical Assistance for
Indigents Program
MARINA Maritime Industry Authority
MC Memorandum Circular
MIAA Manila International Airport
Authority
MIMAROPA Mindoro, Marinduque,
Romblon, and Palawan
MIR Manufacturing Industry
Roadmap
MLD Million Liters per Day
MMC Metro Manila Council
MMDA Metropolitan Manila
Development Authority
MMK Malinis at Masaganang
Karagatan
MO Memorandum Order
MOA Memorandum of Agreement
MOU Memorandum of
Understanding
MOVE Mobile Operations Vehicle
for Emergency
MPN Most Probable Number
MRDN Mindanao Road
Development Network
MRT-3 Metro Rail Transit Line 3
T H E P R E SI D E N T ’ S R E P O RT 165
TO THE PEOPLE
2016 - 2018
MSMES Micro, Small, and Medium
Enterprises
MT Metric Tons
MW Megawatts
MWSS Metropolitan Waterworks and
Sewerage System
NAIA Ninoy Aquino International
Airport
NAPOCOR National Power Corporation
NBI National Bureau of
Investigation
NBP National Broadband Plan
NCCA National Commission for
Culture and the Arts
NCR National Capital Region
NCS Negosyo Centers
NCSP National Cybersecurity Plan
NDRRMC National Disaster Risk
Reduction and Management
Council
NDRRMF National Disaster Risk
Reduction and Management
Fund
NEDA National Economic and
Development Authority
NFA National Food Authority
NGAS National Government
Agencies
NGCP National Grid Corporation of
the Philippines
NGDC National Government Data
Center
NGP National Greening Program
NGP National Government Portal
NHA National Housing Authority
NHTS-PR National Household Targeting
System for Poverty Reduction
 166 L I ST OF AC RON YM S
NIA National Irrigation
Administration
NIPAS National Integrated
Protected Areas System
NIR Negros Island Region
NLEX North Luzon Expressway
NSA National Security Adviser
NTC National
Telecommunications
Commission
NTFMC National Task Force on
Mining Challenge
OAG Official Aviation Guide
OBI Open Budget Index
OCD Office of Civil Defense
OCS Office of the Cabinet
Secretary
OFBANK Overseas Filipino Bank
OFS Overseas Filipinos
OFWS Overseas Filipino Workers
OPAPP Office of the Presidential
Adviser on the Peace Process
OSSCOS One-Stop Service Centers for
OFWs
OWWA Overseas Workers Welfare
Administration
PA Philippine Army
PACC Presidential Anti-Corruption
Commission
PACC Public Assistance and
Complaint Center
PAF Philippine Air Force
PAGCOR Philippine Amusement and
Gaming Corporation
PAG-IBIG Home Development Mutual
Fund  Volcanology and Seismology
PAL Philippine Airlines
PAMANA Payapa at Masaganang
Pamayanan
PAR Philippine Area of
Responsibility
PASADA Program Assistance to
Support Alternative Driving
Approaches Program
PASUC Philippine Association
of State Universities and
Colleges
PAT Permanent Action Team
PCC Philippine Competition
Commission
PCG Philippine Coast Guard
PCIC Philippine Crop Insurance
Corporation
PCOO Presidential Communications
Operations Office
PCSO Philippine Charity
Sweepstakes Office
PDEA Philippine Drug Enforcement
Agency
PDIC Philippine Deposit Insurance
Corporation
PDNGR Philippine Downstream
Natural Gas Regulations
PEM Philippine Electricity Market
PEMC Philippine Electricity Market
Corporation
PESO Public Employment Service
Offices
PEZA Philippine Economic Zone
Authority
PHILHEALTH Philippine Health Insurance
Corporation
PHIVOLCS Philippine Institute of
PHLPOST Philippine Postal Corp.
 168 L I ST OF AC RON YM S

SSF Shared Service Facilities Displaced Workers

SSS Social Security System TVET Technical-Vocational
Education and Training
STEM Science, Technology,
Engineering, and TVIS Technical-Vocational
Mathematics Institution
STUFAPS Student Financial Assistance UAE United Arab Emirates
Programs UHC Universal Health Care
SUCS State Universities and US United States
Colleges
USA United States of America
SURE Survival and Recovery
USAD United Alliance Against
SY School Year Dangerous Drugs
TCA Trilateral Cooperation USAID United States Agency for
Arrangement International Development
TECH4ED Technology for Education, USTR United States Trade
Employment, Entrepreneurs, Representative
and Economic Development
WDS Water Districts
Project
WEC World Energy Council
TESDA Technical Education
and Skills Development WESM Wholesale Electricity Spot
Authority Market
TEU Twenty-foot Equivalent Unit WETI World Energy Trilemma
Index
TFBM Task Force Bangon Marawi
VLAN Virtual Local Area Network
TIEZA Tourism Infrastructure and
Enterprise Zone Authority WPS West Philippine Sea
TOR Terms of Reference WESMINCOM Western Mindanao
Command
TRAIN Tax Reform for Acceleration
and Inclusion
TRANSCO National Transmission
Corporation
TNK Trabaho, Negosyo at
Kabuhayan
TRC Treatment and Rehabilitation
Centers
TRO Temporary Restraining
Order
UCT Unconditional Cash Transfer
TUPAD Tulong Panghanapbuhay
sa ating Disadvantaged /