REPORT OF THE STUDY COMMITTEE ON THE PROPOSED FEDERAL STATE OF

PALAWAN

INTRODUCTION

A University Study Committee was created on August 24, 2005, by President Teresita L.
Salva through OFFICE ORDER No. 138, s.2005, tasked to make an ii-depth research on the
establishment of a Unitary Federal State of Palawan.

Its mandate was to consider the feasibility of Palawan as a Federal state of the proposed
Federal- Parliamentary Government being launched by the National Government. An academic
study, according to Dr. Jose Abueva, would be the best support for Palawan’s aim of becoming a
state separate from the proposed Western Visayas-Palawan Federal State. There was urgency in
doing the study since the Consultative Constitutional Commission was soon to meet. The main
concern of the Committee was to construct the socio-economic profile of Palawan, with emphasis
on its being support itself economically. The study had to be submitted to the Con-Com before it
went around the country for consultation.

To justify the capability to become a federal state, the following areas were studied.

 Legal/Political basis;
 Geologic-geographic/bio-physical basis;
 Historical basis;
 Socio-economic basis.

The committee first met on August 29, 2005. The original deadline to finish the work in
two to three weeks had to be extended to more than a month due to the difficulty of getting
sufficient data from various sources. At the same time, the Con-Com was organized towards the
end of September, giving the study committee a little more time to finish its work.

After dividing the work, the committee met on September 14,21,28, October 5, reporting
updates on specific assignment as fallows:

 Legal basis-Atty. Ustares;

 Political basis-Mr. Zambales
 Geologic-geographic basis- Dr. Socrates

 Bio-diversity- Flora and Fauna – Dr. Docto

 Historical basis- Atty. Alisuag/Prof. Evangelista
 Socio- Economic basis- Mr. Ventura, Prof. Evangelista, Ms. Morante, Ms. Josol

We have emphasized the geologic-geographic, bio-physical, historical, and social

uniqueness of Palawan and why it should be considered as a separate state. It is in the economic
viability aspect that we met with difficult getting the data. In the first place, records of the
Provincial Government and other agencies of the National Government had either incomplete
data or no record at all on income and expenditure for 2004. Moreover, available data showed
that these agencies did not have excess income in order for Palawan to be viable as an
independent state. Current statistical data on population is likewise not available, the last census
having been taken in 2000.

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 It is the economic potential that shows promise, given certain conditions which are
discussed in the report. Yet, data collection in some areas is still being awaited.

We therefore submit this report with some misgivings for circumstances beyond our
control. All members of the study committee did their own work above and beyond their regular
duties.

We thank President Salva for her quick response to the need for the study committee,
and for putting her trust on the membership of the committee.

HISTORICAL BASIS
PALAWAN: A HISTORY

I. PRE-HISTORIC PERIOD
The geographical position of Palawan, a long corridor between the Sulu and China Seas
was important in the movement of peoples and cultures connecting it with the Asian mainland
through Borneo. During the Pleistocene era, it served as a land bridge for flora, fauna and
people. There are striking relationships between the plants and animals of Palawan and Borneo.
Archaeological and ethno historical data also reveal cultural similarities with Sabah and Sarawak.
When the land bridges were submerged Neolithic men likely sailed into what would be the
Philippines via the east and west coasts of Palawan, taking refuge in times of big waves and
monsoons. There are today numerous caves, collectively called Tabon Caves, which show
traces of such prehistoric habitation along the limestone west coast near Lipuun Point and Bacuit
Bay. These caves reveal a flake tool tradition dated to the Upper Pleistocene, about 50,000
to 9,000 years ago- an early post-Pleistocene site, 8,000 to 4,000 years ago; an advanced
jar-burial complex of the late Neolithic, 3,500 years ago; and an advanced Metal Age, with
stone and porcelain jars of the Sung and Yuan Dynasties in the twelfth to fourteenth centuries
(Fox 1970; Kress 1977). This remarkable cultural chronology more than links Palawan to a wider
Southeast Asian prehistory. The Tabon Caves marked the existence of the first man in the
Philippines some 20,000 to 22,000 years ago, thus opening Philippine Prehistory, giving vent to
Palawan being the “Cradle of Philippine Civilization”. (Robert Fox, Tabon Caves)
During the period of the Three Kingdoms, "Little, dark people" living in Anwei Province in
South China were driven south by the Ham People. Some settled in Thailand, others stayed in
Malaysia, and still others went farther south to Indonesia, Sumatra, Borneo and the Philippines
passing through land bridges between Palawan and Borneo. They were known as Aetas and
Negritos from whom our Batak tribe descended.

II. PRE-SPANISH PERIOD

Between the periods, 220 - 263 AD, Tsung-Tse-Yang-Kau, author of the book, "Chang
Shik", mentioned 43 places in the Philippines. Among these were Camarines, Laoag, Corregidor,
Luzon, Cavite, Iling, Antik, Cuyo, Dapitan, Balayan and Palawan
In the early 9th Century, Chinese who traded with the natives of the coastal regions of
Calamianes knew the place as "Palao-yu," meaning "Land of beautiful safe harbors." As early as
the 9th Century, trade and cultural contact existed between the Philippines and her Southeast
Asian neighbors, as well as China, Japan India and the Arabian nations.
In between the periods 1209 & 1214 & 1349 , the names "Kaimayen," "Palao-yu,"
and "Pakinung, meaning Calamian, Palawan and Busuanga, respectively, were mentioned in
Chinese narratives as part of the dependencies of the Mai. Chao-Ju-Kua, in his book, "Chua Fan
Chi" wrote the most vivid and detailed description of Palawan. He recorded that "San Su," (three
islands) were "Kiamayan", "Palau-ye," and "Pakinung." The area contained many "lofty .ridges

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and ranges of cliffs that rise as steep as the walls of a house." This description fits exactly the
cliffs of Calis Island in Coron.

III. THE SULTANATE RULE

No historical record exists to establish the period when the province became part of the
Sultanate that was to include the Sulu archipelago, but it is fairly accepted that the province was
being ruled from the island of Borneo, by the Sultan of Brunei. The royal genealogy of Brunei's
sultans dates back nearly 600 years when in 1365, Awang Alak Betatar embraced Islam, married
a Johore princess, and assumed the title Sultan Muhammad, according to early chronicles.
 A Persian missionary and direct descendant of the Prophet Muhammad, Sharif Ali, as
Brunei's third sultan, further spread Islam, built mosques, and the first defense barriers at Kota
Batu and across the Brunei River. The sultanate's golden age dawned with the reign of the fifth
sultan, Nakhoda Ragam or the singing captain, Sultan Bolkiah, who was famous for many
conquests.
His voyages took him to Java, Malacca and the Philippines, where he seized Seludong
(Manila). His rule extended over the Sultanates of Sambas, Pontianak, Banjarmasin, Pasi Kotei,
Balongan, the Sulu Archipelago, and Islands of Balabac, Banggi, Balambangan and Palawan

In the year 1400, it was estimated that Shareef Kabungsawan and Rajah Baginda.
Kabungsawan introduced Islam in Mindanao and founded the Sultanate of Maguindanao.
Baginda introduced Islam in Sulu. Later the Sultanate extended its influence over Palawan.

IV. SPANISH PERIOD

Ferdinand Magellan landed at Homonhon, Samar, on March 16, 1521 and was killed on
April 27, 1521 in a battle with Lapu-Lapu in Mactan. .After Magellan's death, remnants of his fleet
landed in Palawan where the bounty of the land saved them from starvation. Pigafetta,
Magellan's chronicler named the place "Land of Promise.” The Spaniards saw the people's
cultivated fields and their weapons consisting of blowpipes, spears and bronze Lombard, and
witnessed for the first time cock fighting and fist fighting. Pigafetta likewise discovered that the
pre-Spanish Palawenos had their own system of writing consisting of 13 consonants and 3
vowels. They had a dialect of 18 syllables. He further wrote that in Palawan, the local king had
10 scribes who wrote down the King's dictations on leaves.
Pigafetta further called the island "Pulian", a name closely similar to "Pulaon", according
to Dr. Jose Rizal.
Actually, before the entry of the Spaniards and continuing through almost the entire
period of their occupation, the territories of the province were persistently under the influence of
Islamized people from Borneo and the Sulu archipelago. Indeed, Manila or Luzon would
themselves have become Muslim, had not the Spaniards come to establish the region as a
strategic crossroads or passageway. Pigafetta and other chroniclers mentioned Muslim
settlements along the coasts of Palawan island, tribute collection and proselytization in Cuyo and
the Calamianes and trading activities with Borneo and other southern locales. A glimpse of
Tagbanua, Palawan and Molbog society and culture reveals Muslim dominance and influence in
material culture and social organization, apparently a consequence of trading activities in south
and central Palawan that persisted until the second half of the nineteenth century.
From the year 1565, the Spaniards began their earnest colonization of the Philippine
archipelago , starting from Cebu and then from Manila. By the 1570s, they were collecting tribute
in the Calamianes and the Cuyo islands

V. PALAWAN RESISTANCE TO SPANISH RULE

Palawan was the scene of a protracted resistance against the colonization of the
Spaniards. Contrary to biased historical accounts from Spanish writers and later on Spanish
influenced Filipino writers, the indigenous people of the province who were part of the Sultanate,

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continuously rose in arms and harassed the outposts that the Spaniards were trying to establish
in the province.
In the year 1574, or fifty-three years after Magellan's landing in our country, there was a
plot to drive the Spaniards away, but its uncovering led to the execution of its leaders including
those from Calamianes who were very much involved in the plot.
Another attempt in 1587 brought together in alliance the chiefs of Tondo, Pandacan,
Polo, Catangalan, Castilla, Taguig, Candaba, Navotas, Maysilo, Bangos and Cuyo. The leaders
were Magat Salamat, son of Lakandula, and Agustin de Legazpi, Lakandula’s nephew. The chiefs
solicited help from the Bornean rulers to whom they were related as well from a Japanese
captain who was supposed to bring arms and soldiers to help them drive the Spaniards away. If
successful, the chiefs would give one-half of the tribute customarily collected by the Spaniards to
their Japanese allies. The plan remained a secret from the Spaniards for fifteen months, but
before it could be put into operation, it was betrayed by another chief. Most of the chiefs
involved were sentenced to death or exile and their property confiscated. (Renato Constantino. A
Past Revisited, p. 87)
The Augustinian Recollects, planted the cross" in Cuyo in 1622. They reported a warm
welcome from the natives, excluding the babaylan (native priests), who would be disadvantaged
with the coming of the friars and their policy of reduccion, the gathering of the natives into a
town under the bells. The next year, the Spanish crossed the sea for Taytay in Northern Palawan
island, known to the Spaniards as Paragua.
His Excellency, Senor Don Pedro de Arce, Bishop of Cebu, in a decree, instructed the
Agustinian Recollect Fathers to take charge of the Christianization of Palawan, including the Cuyo
Islands. That same year, 1622, Cuyo and Taytay were "Christianized". Five Spanish Agustinian
Recollect Missionaries from Cebu, led by Rev. Fr. Juan de Santo Tomas, arrived in Cuyo which he
called “Garden of Nature", because of its spectacular pleasantness and beauty.
Fourteen years after the Spanish missionaries started their Evangelization Mission; the
impact of Christianization began to be felt in majority of the pueblos in Palawan. This enraged
the Muslims who considered this as an encroachment upon their territory, religion, independence
and culture, such that in June 20, 1636, a powerful Muslim fleet headed by Datu Tagul,
brother of Sultan Kudarat, attacked Cuyo, Agutaya, Culion and other places in Northern Palawan.
On December 21, 1636 a Spanish naval flotilla of 6 vessels and 250 men under Capt. Nicolas
Gonzales intercepted Tagul and his men with their loot and booty off Punta Flechas. In the naval
battle, Tagul was slain and 300 of his followers were captured.
The attempt of the Spaniards to establish a foothold in Mindanao, met with defeat from
the resistance of the Moros. In the year 1718, The Spanish activity of this period was not
directed against the seat of Moro power in Jolo. They turned rather to the neutral ground on the
island of Palawan. A Spanish fort was erected at Labog, (now part of Brooke’s Point) in Palawan
in 1718. Supplies were sent only infrequently to the men of the garrison and the location of the
fort itself was in a deadly malarial zone. Most of the garrison died without coming to grips with
the Moros at all, and the fort was abandoned in 1720.
Even the outposts established by the Spaniards in the Northern part of Palawan, met
resistance from the Moros such that on July 1720 they attacked Linapacan, destroying the
Spanish outpost and killing some Spaniards, in the year, 1721 Agutaya was attacked, catching
the Spaniards by surprise, [P.L. Ruiz) and in 1730 they attacked the military base in Taytay.
During this period, several noted battles were fought in Palawan between the Spaniards and the
Moros involving hundreds of fighting men on both sides.
The Spaniards were, however, still interested in securing a foothold on Palawan as it
offered a course of least resistance with less possibility of Moro attacks. In 1730, Captain Antonio
Fabeau, at a remuneration of $50 per month, was sent with troops to Palawan with orders to
subdue the country. This announcement was equivalent to waving a red flag. The Moros, who
had hitherto ignored Palawan, now descended in force upon the hapless garrison. The fort was
repeatedly attacked, and hardly a member of the garrison survived the combination of rotting
food and Moro kris.

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 In 1735 a settlement was established at Taytay in Palawan, but this suffered the same
fate as the fortress in Labog. The mood of the times was preserved by an account of the horrors
of the Spanish outposts. Padre Crevas says in part:

As far as Balabac (Palawan) is concerned, its history shows the colors of a

sorrowful tragedy, where the death of its first Governor, Senor Garnier,
appeared like a pre-announcement of the many victims this deadly soil was to
devour. The position of this little isle between Palawan and Borneo is eminently
strategical and thus very wisely the government decided upon its occupation and
colonization. We find that not a few of the men maliciously make ulcers or
conceal them until the moment of embarking for Balabac, a point which imposes
respect upon the soldiers. It is certain that the lack of things most necessary to
life have added sometimes its rigors to those of the climate, and when the
Elcano arrived from Balabac we found to our sorrow that since the end of
December the garrison lacked meat, oil and lard, and only sustained itself with a
liter and an eighth of rice daily. Thus it is that the state of entries into hospital
and deaths are horrible. I will content myself with saying that in a town
composed of two companies of 80 men each, of 150 sailors, 15 artilleries and 50
prisoners, in one year 122 people died.

The closeness with which the Moros confined the Spanish soldiers to the fort is
shown by the lack of meat and lard in a country which abounded in deer,
pigeons and wild boar.

The Spaniards proved unequal to the development of the Island of Palawan. At the time
of the evacuation of the Philippines by Spain in 1899, we find but two stations on the entire
island. At one of these, Balabac, Spain retained a small naval station with a force of twenty-two
marines. The other post on Palawan was a gunboat station at Puerto Princesa manned by two
companies of infantry. Two small gunboats made periodic patrols of the island and the station
was visited by a mail steamer every twenty-eight days. The post at Puerto Princesa was of
modern date, being established only twenty years prior to American occupation of the islands.
In the year 1858, the province, then known as Calamianes was divided into 2 provinces,
"Castilla" and "Asturias." "Castilla," comprised the Calamianes, the adjacent islands and the
northern portion of Paragua. Its capital was Taytay. "Asturias" included the rest of Paragua
together with the island of Balabac, which early that year was made into a politico-military
province with the name of Puerto Principe Alfonso.

VI. THE ESTABLISHMENT OF PUERTO PRINCESA

In the year 1872, the Spaniards decided to establish a foothold in the main island of
Paragua, with plan of making it the capital of the province. They also had in mind the
establishment of a place to exile political dissenters. A colonia penitenciaria it would be as well,
just in time for the Cavite mutineers of February. The capital was to be founded on "a place with
a good harbor, with good water supply, where there are some groups of docile Tagbanuas." The
site selected was called Iwahig by the natives and christened Puerto Asuncion and later Puerto
Princesa by the Spaniards. The natives were to be befriended and given tools, seeds and other
materials, while the nucleus of a future Christian poblacion would be founded by 50 or 100 poor
families from Cuyo.
The expedition consisted of the politico-military governor, a chaplain, and a missionary
leading a compania disiplinaria with 22 officials, 183 soldiers engineers, an administrator, a medic
and a coadjutor. Together with 27 women deportees and 20 civilians, laden with instruments for
felling timber and materials for construction and masonry, the expedition left Manila on 22
February 1872 after a grand parade and pealing of the bells, invoking the Hispanic glory of a
300-year history. They passed Cuyo en route to load additional provisions. At noon of 4 March

5
1872, they dropped anchor at the Puerto Princesa harbor and saluted each other. An account of
the event states:

“There was a scramble through the mangrove thickets to the highest point,
where the Spanish flag was planted with the accompanying cheers and rifle fires,
followed by the signing of the Acta at three o'clock. A temporary headquarters
was established along the seashore, and then efforts at clearing turned inland,
toward what would become the poblacion. Then followed a series of "firsts,"
significant from the Christianization perspective. The first mass on 10 March, in a
makeshift chapel with cover of wind sun and water," the first baptism, 24 March,
of Celia Marcelo born November 1871, daughter of Mr. and Mrs. Alberto Marcelo
of Cuyo the first wedding 8 June, of Tranquilino Asuncion of Pasig and Isidora
San Jose of San Juan del Monte Manila; and the first internment, 4 April, of
Justo de la Cruz son of Eugenio de la Cruz and Maria Roja of Santa Cruz, Manila”

The earliest inhabitants of Puerto Princesa were convicts or deportees from Luzon, in the
same manner that the earlier non-native population of Cuyo were deportees from Spain
convicted of political and common crimes. Puerto Princesa was not exactly in the mold of a
reduccion; absent are accounts of a sizable native population being gathered and herded or
resisting and fleeing was more of transplantation. As to what kind, we initially get an idea from
the traveling French naturalist Marche. He visited the place a decade later, in 1883, and
bequeathed us an impression that would later become a stereotype beclouding the image of the
province up to the present.
“The inhabitants of Puerto Princesa are deportees: almost everybody is either a
convict, a murderer, a thief, etc. There are only two Spanish merchants, a
butcher and a grocer, some Chinese and a few inhabitants of the islands of
Calamianes who compose the surplus population of the new Spanish colony" [
Marche, 1970, 206 209].

Despite such impression, Puerto Princesa eventually showed up to its promise as the
center of the province's development effort. In 1894, Puerto Princesa received the distinction of
being "one of the most beautiful towns (uno de losmas bellos) in the country because of orderly
distribution of streets, buildings and houses, and its cleanliness."

VII. THE PACIFICATION OF THE PROVINCE

In the year 1873, the capital of the province was transferred from Taytay to Cuyo.
[Fernandez and Fernandez, The History and Culture of Cuyo ], but the attacks from the Moros
persisted such that in 1876, they attacked the towns of Linapacan and Busuanga. They burned
Linapacan and its church. [ Cedulario, 1717 to 1722;' Folio 114 to 164) and in 1876, Bacuit
town and neighboring islands were attacked. Farther north, Linapacan was pillaged, Culion taken
hostage, and Busuanga defended valiantly. Twenty times between Caruray and Apurauan on the
western coast, raiders carted four "big slave cargoes" from Tagbanua settlements.
The south of Palawan was under the jurisdiction of the Sultan of Sulu. Harun ar-Rashid
(Alon Narrasib, Jaron, Surutan Alun), Sultan of Sulu from 1886 to 1894, who resided in BonBon,
South Palawan. It was said that Surutan Alun picked the first Tagbanua masikampu in Apurauan.
The Muslims continued to have control of the gathering of slaves and forest products for
domestic and trade purposes, instilling fear and submission.

The Muslims eventually yielded to a vigorous southern campaign of the Spaniards in the
latter part of the century. The pueblos moros became vulnerable to attack and occupation by a
strengthened Spanish naval force. The occupation, albeit token and threatening at best, was
formalized with the signing by the representatives of Sultan Harun of a document recognizing the
power of the King of Spain in Puerto Princesa on 19 November 1886.

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VIII. PARTICIPATION OF THE PROVINCE IN THE REVOLUTION
The revolutionary movement, led by the Katipunan, started in Manila and the
surrounding Tagalog provinces, but eventually took hold in places north and south. Captured
revolutionaries or suspected filihusteros and insurrectos increased the ranks of the deportees.
About 200 of them were said to be exiled to Balabac. The ship Alava disgorged 53 deportees in
Puerto Princesa on 23 September 1896. From them would come revolutionary action. Initial
reports assured them of control and vigilance, but Spanish suspicions grew as the new arrivals
teamed up with the old deportees. By November "a vast conspiracy" was discovered. 235
deportees and 50 native soldiers of Regiment 68, were to kill the Spaniards in the colony, attack
the fort in the poblacion, and take the mail ship when it next arrived. The Spanish governor was
aghast that "in a town of 2,000 inhabitants, there was no one loyal to Spain to reveal anything
about the conspiracy." A mestizo deportee, Damaso Ponce and a fellow Bulakeno, Ceferino
Aldaba, headed the uprising. The Spaniards quickly attacked the regiment's quarters, detained 40
men and rounded up the rest. Five leaders—Ponce and Aldaba, two soldiers of Regiment 68 and
one soldier of the provincial force—were sentenced to die, and thirty others were meted lighter
penalties. The five were shot at dawn of 26 November 1896
The next year, 20 November 1897, the native detachment of Balabac arose and freed the
deportees. In a whirlwind attack planned together with some Muslims, they overwhelmed the
Church; killed the Spaniards including the governor; destroyed the water tank; and burned
government buildings. Puerto Princesa and Balabac thus did their part in the movement that
severed the colonial ties, making the Revolution more than just the regional act it is often said to
be.
On November 8, 1898, a force led by Sgt. Vicente Reynoso freed the prisoners at Puerto
Princesa which was then the dumping ground for all the prisoners in the province. The liberated
prisoners fought the Spaniards who later escaped to North Borneo where they had a garrison
On December 1898, the " Govierno de Revolucion Dictatorial in Lucbuan, Cuyo Island,
was declared by Don Casiano Padon. Popularly known as "Lucbuan Republic", this government
was short-lived. It was an offshoot of the Philippine Revolution and the only one of its kind in the
entire country.

IX. THE REVOLUTIONARY GOVERNMENT OF PALAWAN

By 1898, the Spaniards withdrew their forces throughout the country, the result of the
renewed siege by the Filipinos as well as the entry of the American naval forces in Manila Bay.
The Philippine Republic was established in 1899 in Malolos, and representatives were appointed
by President Emilio Aguinaldo to facilitate integration of areas such as Palawan into the new
government, this amidst the threat of impending occupation of the country by the Americans.

The representatives' efforts to organize a new government apparently showed that they
made no distinction between national and individual interests, ensuring that "nothing has
changed, it was just like the old regime." President Emilio Aguinaldo's representative in the
Calamianes landed in Taytay in 1898 as Chief of the Revolutionary Army, but by the next year he
was committing abuses against the natives in the Cuyo islands. Hermogenes Constantino,
Aguinaldo's commissioner in Paragua in 1899, a Tagalog from Bulacan, presented revolutionary
credentials, was active in setting up local governments, and exhorted the people towards greater
involvement. Unfortunately, as it later turned out, these efforts were largely for his own personal
well-being. Successive events showed how men of the times succumbed to the temptations of
power. A replacement commissioner, Rufo Sandoval of Culion, sought to rectify the situation and
maintain the dignity of the office.

In May 14, 1899, the officials of the Revolutionary Government of Palawan gathered in
front of the Municipal Hall of Puerto Princesa where they took their oath from the Revolutionary
Governor Hermogenes Constantino, and swore to defend the newly proclaimed Philippine

7
Republic. The following officials were elected, with Constantino having been elected by
acclamation as Governor.

Council President : Licerio Patricio

Councilors : Victoriano Ledesma
Ceferino Muyot
Regino Austria

Alternates : Vicente Reynoso

Eduardo de la Cruz
Laureano Vigan

Earlier on May 9, 1899, Constantino gathered the leading citizens of Puerto Princesa, and
after making them swear allegiance to the new republic, presided over the election of their
leaders. The following were elected:

President : Teodoro Agarao

Vice-President : Eugenio Morales
Deputy for Finance : Mariano Ponce de Leon
Deputy for Justice : Manuel Venturillo
Deputy for Police : Agustin Mendoza

Barrio Presidents
Calero : Victor Francisco
Cuyito : Anacleto Baculi
Tagburos : Nicomedes Borromeo
Yrauan : Patricio Cababao
Canigaran : Macario Sueno
Yhuajig : Agustin Magno

In September 1, 1900, Rufo Sandoval, the former Gobernadorcillo of Culion, was

appointed by Gen. Baldomero Aguinaldo, Secretary of Interior of the Philippine republic, to
replace Hermogenes Constantino who has been accused of corruption and other despicable acts.
Constantino was arrested by the revolutionary government on October 4, 1900 in Araceli.
On the way to Culion, to check reports of American incursions, a flotilla of boats headed
by Gov. Rufo Sandoval encountered the American gunship Samar, on May 24, 1901 near
Maytiguid and after a brief encounter the group of Gov. Sandoval fled inland leaving their boats.
The Americans destroyed the boats and confiscated documents of the revolutionary government.
That was the last sighting of Sandoval who reportedly died not long after due to sickness. On
May 29, the gunboat Samar joined up with Aelus under Major George LeRoy Brown and the
U.S.S. Vicksburg under Cap. E.B. Barry and prepared to attack Puerto Princesa which was then
still being held by the Filipino revolutionary troops. Puerto Princesa surrendered without a fight
to the Americans on the same day.

X. AMERICAN REGIME
After the Filipino-American War, the Americans established the Civil Government of
Paragua with Major John Brown as the First Appointed Governor. Paragua then included
practically the same territory as the former province of 'Castilla"or Calamianes, the Cuyo and
Calamianes Island groups and Dumaran Island. Cuyo was the capital. (Philippine Commission Act
422, enacted June 23, 1902).
The province was organized under the administration of the Americans on 23 June 1902
by Act 422 of the Philippine Commission. The organization was little hampered, and the occupiers
were heartened by their enthusiastic welcome in Cuyo. Act 747 extended the province to include

8
southern Palawan and the Cagayan islands. Act 1363, in 1905, again renamed the province
Palawan instead of Paragua

The Provincial boundaries were further revised to include all the Paragua of Palawan,
together with essentially all of the other islands and territory it has today. (Philippine Commission
Act 747, enacted May 14,1903).
Culion Leper Colny
In the year 1904, a new American Governor, Luke Wright was appointed. His most
important achievement was the transfer of jurisdiction and control of Culion from the Municipality
of Coron and reserving the same as a leper colony and a government stock farm.
This year also marked the arrival of some Thomasites, the American teachers who came
on board the US Transport Thomas, in Palawan. Seven were assigned in Cuyo. They were:
1. IrahD.Cobb
2. William B.Dawson
3. Nellie E. Knapp
4. W.C.Spencer
5. ChasH. Stone
6. Horace E. Morrow
7. Charles D. Hart
Others came earlier aboard the transport Lawton and Sheridan.
Iwahig Penal Colony
In November 1904, sixty prisoners were sent to Palawan to inaugurate a penal colony on
the Iwahig River, opposite the town of Puerto Princesa. The object was to establish a settlement
where long-term prisoners soon to be released could receive "a training for the duties and
responsibilities of good citizenship" while relieving congestion at Bilibid Prisons in Manila. The
establishment of the colony with the clearing of the forest and the erection of buildings and
dwellings took a heavy toll in the first year, with "much sickness and many deaths" and
numerous escape attempts, even as it also displaced indigenous Tagbanua. Succeeding reports
mentioned improvement of living conditions and fulfillment of goals. Later many an observer
would describe Iwahig Penal Colony as a "unique institution
In 1909 January 1 the Paragua Province was renamed Palawan. The Capital was
transferred from Cuyo to Puerto Princesa, the third capital. ( Philippine Commission Act 1363,
enacted June 28,1905).
Governor Edward Y. Miller succeeded Gov. Wright. Miller and served from 1911tol913. He
conducted an extensive study of the needs of the province and set up a policy of attraction. His
interest in the minorities resulted in the establishment of the farm school in Aborlan and the
construction of schools through out the province.
Gov. John F. Evans served as Governor. He hunted pirates and criminals and promoted
agricultural development. Health centers started to spring up during his term. It is to be noted
that during the terms of office of the American Governors great emphasis was laid on education.
Because of these policies, the Americans succeeded in enforcing their will on the people.
Gov. Herbert Dittricks was the last American Governor- General.
In 1914, when World War I broke out., Ambrosio Pablo was appointed Governor, the first
Filipino appointed as such by the Americans.
In 1919, the first popular election for Governor was held. Vicente Sandoval from Coron
was elected First Palawan Governor. He devoted most of his term laying the groundwork for a
long-range development program of Palawan.
From 1922 to 1925, Anastacio Manalo served as Governor. His most notable
achievements were the construction of the present wharf in Puerto Princesa, the north and the
south roads leading to the Iwahig Penal Colony and the capitol building near the wharf.
In 1934, Palawan, under Governor Higinio Mendoza, filed a petition of secession
from the Philippines and decided to attach itself permanently as a dominion of the United
States. The resolution was an expression of the popular sentiment against the Philippine

9
Government's indecision, apathy and inaction to help the Palawenos. Then Secretary of Interior
Elpidio Quirino stopped the move on time.
In 1936, Sofronio T. Espanola was elected Provincial Governor. The asphalting of Puerto
Princesa roads and the construction of other roads; north and south, and the improvement of
trade and commerce were attributed to his administration

From March 22 to 23, 1940, then of Commonwealth President Manuel L. Quezon went
to Puerto Princesa and Cuyo. It was the first time a Philippine President came to Palawan.
XI. JAPANESE OCCUPATION, RESISTANCE MOVEMENT
In 1941, Espanola resigned as governor and ran for Congressman. Gaudencio E. Abordo
was appointed governor and served the unfinished term of Espanola until the outbreak of World
War II
On December 8, 1941 the Pacific War broke out. Many gallant Palaweños joined the
USAFFE and saw action in Bataan, Corregidor and other battlefronts in the country, until the
surrender of Bataan and Corregidor on April 9 and May 6,1942, respectively.
On March 12, 1942 General Douglas McArthur and party took refuge at Tagawayan
Island, Magsaysay Municipality in the Cuyo Island Group, during their escape from Corregidor to
Mindanao. From there they proceeded to Australia by submarine, evading the tight Japanese
cordon. Their mission was to reorganize and prepare adequately the American Liberation Forces
in their return to the Philippines. It must be recalled that Bataan fell on April 9, while Corregidor,
on May 6
On May 18, 1942 the Japanese Imperial Forces occupied Palawan 12 days after the Fall
of Corregidor. (From: "The History of Palawan," by Diokno Manlavi). After the occupation of
Palawan on May 18 by the Japanese Imperial Army, a civil government was established. Called
Free Palawan, this Commonwealth Government was never surrendered to the Japanese by the
intrepid Governor Gaudencio E. Abordo. It functioned while simultaneously supporting the
Palawan Special Battalion until the end of the Second World War. It was easily and immediately
reorganized and normally restored during the early days of the liberation. Palawan was one of
the few local governments that had this distinction,
On October 2, 1942 the infamous Patonga (Alcoba) Massacre was perpetrated. The
Japanese brutally shot twenty innocent male inhabitants of this island for being suspected as
guerillas. Two luckily escaped death to tell the gruesome tale.
In the month of September, 1943 the Palawan Special Battalion composed of 1,154
officers and men was formed. The battalion was organized by Major Pablo P. Muyco, pursuant
to a directive of Colonel Macario Peralta, dated August 13, 1943
On January 24, 1944 of Dr. and Capt. Higinio Mendoza, gallant Palaweños Guerilla
Leader, was executed for his vehement refusal to support and cooperate with the Japanese
Imperial Forces. His death was as glorious and heroic as that of Justice Jose Abad Santos in
1942, for the same principle. While Abad Santos is the country's hero of World War II, Dr.
Mendoza is the Palawan Hero. Both are martyrs for a truly noble and patriotic cause.
On December 15, 1944, one hundred fifty four (154) American Prisoners of War were
burned alive inside a tunnel below the PC. Headquarters in Puerto Princesa. The Japanese poured
gasoline and set the pit on fire. Twelve were known to have survived the macabre massacre, the
worst and most inhuman, in Palawan history during the Japanese Occupation.
On December 23, 1944, the battle of Araceli, the biggest raid of the entire guerilla
campaign in Palawan was fought. The casualty lists as follows: 46 Japanese killed; 36 wounded.
Guerilla losses: 3dead; 5 wounded. The brilliant strategy of attack in this area was planned by Lt.
Andres Baaco. The incessant raids were launched by Company "B" under Capt. Tomas
Timbancaya.
On February 2 8, 1945 he 41st Division of the US 8 th Army landed simultaneously in
Canigaran and Puerto Princesa Bay. Three guerilla guides, Lt. Antonio Palanca, Sgts. Pascual dela
Cruz and Vicente Aizo were with the American Liberation Forces. The liberation of Palawan took
place 1,177 days after the bombing of Pearl Harbor.

10
 In the month of March, 1945 the Provincial Commonwealth Government of Palawan
under war-time Governor Gaudencio Abordo was re-established. It operated at Iwahig where
most of the high ranking Filipino Officials who served in the Japanese Government were sent by
the Americans as prisoners.
XII. LIBERATION AND POST LIBERATION
In 1946, Ramiro Castro was appointed Acting Governor to fill the vacancy left by
Govemor Abordo who lost against Sofronio T. Espanola in the 1946 Congressional Election.
In 1947 , Alfredo M. Abueg, Sr., became Provincial Governor. He was besieged by
numerous concerns. The Province lay prostrate. Issues of war damage, rehabilitation, settlement
of guerilla indebtedness, commerce, industry, public works and education faced his
administration.
After the war, migrants from all over the country continued to arrive in Palawan. A
24,000-hectare land settlement area in south central Palawan (what would become the town of
Narra) was specifically established to accommodate settlers from Central Luzon displaced by the
Huk insurgency or leaving other thickly populated areas of the country. Sponsored resettlement
at Narra and voluntary resettlement throughout the island "has had initial effect on the coastal
occupants, the Cuyonon, Agutaya, Cagayanon and Muslims who have staked permanent land
development claims, but has had drastic displacing effects on the tribal population who have
been pushed further up the mountain slopes, most of which areas are marginal for long-term
settlement and sustained agricultural production."
In 1949, the election for Congressman was a rematch between Abordo and Espanola.
This time Abordo made it, but his election was contested by Espanola who after three years, was
proclaimed Congressman-Elect.
In 1956 Alfredo M. Abueg, Sr. sought re-election, won and served until 1960 as
Governor.
In 1960 Telesforo Paredes was elected Governor, the first Palaweño Governor to be re-
elected consecutively. In the year 1962, a team of anthropologists from the National Museum led
by Dr. Robert Fox unearthed fossils that were classified as those of "Homo Sapiens" at Tabon
caves. Carbon dating established the find to be 22,000 to 24,000 years old.
In the election of 1965 Ramon V. Mitra, Jr. was elected Congressman. He took active
participation in National affairs and projected the image of Palawan in the right perspective. He
was credited a number of important legislations for funding these is his legislation which made
Palawan a first class province increasing its income.
In 1967, Salvador P. Socrates became Provincial Governor, succeeding Governor
Telesforo Paredes. He initiated steps never before undertaken by any governor. He-appointed
deputy governors for every municipality and created several provincial government positions.
He organized the PEDC, Palawan Economic Development Council, an agency to undertake the
study, funding and implementing plans and projects designed to develop economic development
in the province.

GEOLOGICAL – GEOGRAPHIC BASIS

THE UNIQUENESS OF PALAWAN'S GEOLOGY

The Philippine archipelago of 7,107 islands, 1,700 of which are in Palawan, lies in a
triangular area of the West Pacific Ocean where three great tectonic plates of the Earth's crust
meet. These are the Eurasian Plate, the Pacific plate and the Indo Australian Plate. The Philippine
archipelago is divided into two major structural units: a stable region and a mobile belt. The
southwestern part of the archipelago which embrace mainly Palawan and the Sulu
Sea is the stable region. The rest of the archipelago is the mobile belt.

Based on both inland and submarine morphology, the Philippine Archipelago is divided
into four Physiographic Provinces, namely:

11
 1) Eastern Physiographic Province
2) Central Physiographic Province
3) Western Physiographic Province
4) Palawan Physiographic Province

Thus, geology, Palawan is distinct from the rest of the Philippines. Furthermore, the
Eastern, Central and Western physiographic provinces of the Philippines altogether constitute an
elongated region bounded on both sides by deep trenches. They are composed of a series of
ridges and troughs running generally parallel to the trenches. The Palawan Physiographic
Province is separated from the three other provinces by a channel connecting the Sulu
and Manila Trenches. The NE-SE trend of ridges and troughs in the Palawan Province is almost at
right angles to the NS to NW-SE trends in the three other provinces. Thus, geology, Palawan is
also a region of its own int he Philippine archipelago.

The Eastern Physiographic Province is a belt limited on the east by the Philippine Trench
and its northern extension, the East Luzon Trench. On the west, it is bounded the western limits
of mountain ranges including Sierra Madre, Western Bicol Ranges, Samar Highlands and Diwata
Range. The belt is divided into three subprovinces: Northern Sierra Madre, Bicol and Samar-
Davao.

The Central Physiographic Province is bounded on both sides by mountain ranges. It is

composed of cordilleras, lowlands, troughs and small offshore basins. It is subdivided into the
following subprovinces - Babuyan, Cagayan-Corbello, Central Luzon, Bondoc-Sarangani, Central
Visayas and Cotabato.

The Western Physiographic Province is composed of ridges and troughs, which

collectively comprise the Western Segment of the Philippine Mobile Belt. The northern part is
parallel to the Manila Trench, the southern part to Sulu Trench. The province is divided into three
subprovinces: Zambales Subprovince, Antique Subprovince and Zamboanga-Sulu Subprovince.

The Palawan Physiographic Province is composed of ranges, shelves, ridges and offshore
basins forming the south western part of the Philippine Archipelago. It is divided into four
subprovinces which are disposed parallel to each other along a NE-SW trend: The Palawan
Subprovince, The Cuyo Shelf Subprovince, The Northern Sulu Sa Basin Subprovince and the
Cagayan de Sulu Ridge Subprovince.

Mainland Palawan Island is geologically divided into Northern and Southern Palawan by
the Sabang Thrust which is a sinuous, low angle thrust intersecting the central part of the island.
Carboniferous to Permain metamorphic units of quartz sericite schist, some graphite schist and
greenschist facies and cretaceous to Eocene quartzofeldspathic sandstones, Shale and
carbonaceous mudstone of turbiditic affinity underlies the northern fraction of Palawan. In the
South fraction, cretaceous chert-spillite formations serves as the basal lithology for turbidite
aprons and the ophiolite nappes. These basal formations of both fractions comprise up to the
Reed Bank, the eastern protruding portion of a drifted marginal fragment of the proto-mainland
China on the South Western edge of the Eurasian Plate. Unique in the Philippine
Archipelago, Palawan is thus a microcontinent derived from the Eurasian continent.
Rifting of the Southwestern edge of the Eurasian Continent began around 33 million years ago,
then for the next 17 million years the rifted fragment that was to become Palawan drifted
southwestward, to collide with the rest of the Philippine Archipelago.

THE PALAWAN PHYSIOGRAPHIC PROVINCE OF THE PHILIPPINE ARCHIPELAGO

Palawan Subprovince: Palawan Subprovince includes the Busuanga Island Group, Palawan

12
mainland, and the Balabac Island Group.

The Busuanga Island Group which comprise the northern part of this sub-province
includes the islands of Busuanga, Coron and Culion. These islands are generally mountainous
with elevation rising over 650 meters. Ridges and valleys are generally oriented northwest with
north-south kinks reflecting the complexly folded nature of the underlying Paleozoic sedimentary
rocks. The drainage pattern is trellis and consequent to structures. Coron Island, which is entirely
covered with massive limestone, exhibits a distinct karst topography. The nearby islets have
generally the same topography as the major islands; notches in limestone up to five meters high
are common, indicative of the magnitude of Pleistocene sea level changes.

Palawan Island, which is the fifth largest in the Philippines, is mountainous along its
entire length. Slopes on the west are shorter and steeper than those on the east. The larger bays
are Ulugan and Malanut along the western coast and Island and Honda along the eastern coast.
Two N-S lineaments, expressed as valleys and lowlands, one connecting Ulugan and Honda bays,
the other, Malanut & Island bays, cut across the island. These lineaments make possible the
division of the mainland into three segments.

North Palawan is rugged with high mountain ridges. Among the prominent peaks are
Cleopatra's Needle (1593 m), Pagdanan Range (663 m) and Mt. Kapoas (1021 m). The coastline
is indented especially in the northern part, the most conspicuous being Malampaya Sound.

Central Palawan, which extends about 130 km between Ulugan and Malanut bays, is also
rugged and mountainous. Victoria Peak, the highest, is 1727 meters. A broad coastal plain, about
80 km long is on the east. Northward, this plain is cut off from the lowlands of Puerto Princesa by
hill spurs; southward, it connects with the lowlands fronting Island Bay. On the west, drainage is
by numerous short streams flowing to the northwest; on the east, rivers cut deep ravines and
gorges and widenas they approach the coastal lowland.

South Palawan consists of two mountainous areas. The larger area on the north which
occupies nearly its full width, comprises Mantalingajan and Pulute ranges which are both very
rugged. These ranges culminate in Mt. mantalingajan(2054 m), the highest peak in Palawan. The
southern mountainous are is of lower relief. Highest elevation is over 1000 meters. The coastal
plain on the southeast is widest south of San Antonio Bay where it extends inland for about 17
kilometers. It is made up of elevated coral reefs.

Balabac Island is south of Palawan mainland. The northern part, which is of lower relief
than the southern, is composed chiefly of lowlands reaching a maximum elevation of about 190
meters. The southern half is rugged, characterized by steep slopes and small narrow stream
valleys. Highest elevation is 569 meters.

Cuyo Shelf Subprovince Cuyo Shelf is the region enclosed by northern Palawan,
Mindoro and Panay islands. The shelf includes the Cuyo Island Group. It was a peneplain
subsequently covered by a mantle of sedimentary rocks. Water depths range from 55 to 110
meters.

Northwest Sulu Sea Basin Subprovince This subprovince corresponds to the

Northwest Sulu Sea Basin, a submarine depression along the eastern side of Palawan mailand. It
is about 400 km long and 120 km wide. The depth of the sea floor reaches to more than 2000
meters. The northern half, with rolling submarine terrain, is shallower than the flat, southern
part. The wide abyssal plain on the south which is about 2000 m deep is filled with a thick
section of sedimentary rocks that is folded towards the middle of the basin.

13
 Cagayan de Sulu Ridge Subprovince Cagayan de Sulu Ridge separates the
Northwest and Southeast Sulu Sea basins. It is about 500 km long and 30 km wide and connects
the small reef islands of Tubbataha, Arena, Cavili and Cagayan de Sulu Island.

MINERAL DEPOSITS OF PALAWAN

Mineralization in Palawan is represented by the following five types of deposits:

1) Orthomagmatic
2) Hydrothermal vein type
3) Bedded manganese deposits
4) Cyprus-type massive sulfide deposits
5) Laterite deposits

Orthomamatic chromite deposits in the Philippines are exclusively associated with Alpine-type
peridotite-dunite-gabbro complexes in ophiolite terranes. Cretaceous to Eocene ultramafic
complexes which are extensively distributed throughout Palawan host chromite and nickel
deposits of varying grades and quantities.

Hydrothermal vein deposits in Central and Northern Palawan yield mercury and antimony as the
main products. The hydrothermal solutions responsible for the deposition of these are bodies
could have migrated upwards through the post-collision tension fracture systems opened in the
area during the Quaternary.

Bedded manganese deposits occurring in Palawan is stratigraphically controlled and associated

with pelagic chert units. The manganese is interbedded and apparently syngenetic with chert,
some basaltic breccias and phyllitic mudstone deposits.

Cyprus type massive sulfide deposits in Balabac Island and Brooke's Point are the major base
metal mineralization essentially of copper in Palawan. The ore is confined in both the spillitic
lavas and the associated pelagic units.

Nickel laterite deposits in Palawan are the result of weathering of large ultramafic complexes
thrust over the continental crustal basement.

PETROLEUM DEPOSITS OF PALAWAN

Petroleum occurs in tertiary sedimentary basins and the Philippine archipelago hosts 13
such structures of varying oil and/or gas potentials and hydrocarbon types. These are: Cagayan,
Ilocos, Central Luzon, West Luzon, Bicol Shelf-Lamon Bay, Southeast Luzon, Iloilo-West Masbate,
Visayan, Agusan-Davao, Cotabato, Sulu Sea, South Palawan-Mindoro; basins. The productive
and most promising of these are predominantly in Palawan:

THE NORTH PALAWAN-MINDORO BASIN is where Malampaya/Camago is and the largest

sedimentary basin in the country. It is a broad platform in west central Philippines which covers
an area of 13,000 square kilometers, 95% of which is offshore. The late mesozoic and Tertiary
marine clastic-carbonate section of this basin's sedimentary formation has a thickness of over ten
kilometers of which the tertiary fill probably attains as much as 4 to 5 kilometers. The basin is
part of the Kalayaan-Calamian Microplate which rifted from the South China Continental margin.
Four major structural or sedimentary provinces are recognized: Northwest Palawan Shelf, Cuyo
platform, South Mindoro Basin and East Mindoro Depression.

THE SULU SEA BASIN - this offshore basin consist of three troughs (or sub-basins)

14
separated by northeast-striking ridges. It has an area of 60,000 sq. km. and includes part of the
continental shelf and slope of Northeast Borneo (Malaysia). The south western edge of the basin
lies partly in Malaysian territory. The Balabac and Bancauan sub-basins which contain mostly
Paleogene to Neogene shallow to deep marine clastics of over 5 km and 3 km thichness
respectively. The Sandakan Sub-basin contains over 9 km-thickness of mostly Neogene fluvio-
deltaic clastics with minor reefal limestones, superimposed on backarc-deposited, deep marine
sediments of Paleogeneage.

THE SOUTH PALAWAN SHELF-REED BANK BASIN - This area includes the Reed Bank,
Southwest Palawan Shelf (southwest of the Ulugan Bay Fault) and the Dangerous Grounds Area
(in the Spratlys). The basin covers an area of 100,000 sq km, 90% of which lies in the South
China Sea. A large portion of the basin is part of the Kalayaan-Camalian Microplate which drifted
from the South China continental margin. Basin fill is composed of Upper Mesozoic to Quaternary
marine clastic-carbonate sequences. Clastic sections include quartzose and arkosic sandstones.
Deformation is dominated by extensional block faulting and tilting. In the Reed bank area,
northeast-southwest trending rifted fault blocks generally tilt to the southeast. Neogene
compressional features (thrust and strike-slip fault) overprint to offshore southwest Palawan
area. This basin is considered a rift basin modified by collision or compressional tectonics.

BIOLOGICAL BASIS
(Flora and Fauna of Palawan)

The province of Palawan is one of the 15 Biogeographic Zones of the Philippines

identified by the Department of Environment and Natural Resources (DENR) and the United
Nation Environmental Program (UNEP) with unique flora and fauna (DENR-UNEP, 1997). Palawan
together with the Calamian Islands, Balabac, and neighboring smaller islands, collectively
comprise the “Palawan Faunal Region”. The region constitutes the easternmost extremity of
Sunda Shelf and is separated from the rest of the Philippines by deep-water channels i.e. the
Wallace line. This is the reason why Palawan has a lot of endemic species of both flora and
fauna.

The Philippine stated policy on biodiversity is to protect and conserve it (flora and fauna)
ex situ and in situ, and promote its equitable use. This means keeping bioresources intact where
found or place them in special facilities if it is necessary to ensure their protection. (Malayang,
1999). For Palawan where a number of endemic species are found, it has to be preserved and to
be conserved in order to maintain a healthy ecosystem.

FLORAL COMPOSITION

In terms of flora composition, Palawan is considered as a tropical paradise. It is one of

the most diverse and rich islands in the Philippines, with an estimated 3,000 – 3,500 flowering
plant species, mostly endemic to Palawan. This relatively high number of plant species and a
proportionately high endemism can be attributed to the geological, climatic, adaphic and
biological features of the island (Madulid, 2002).

Palawan harbors several kinds of vegetation and these occupy specific niches in the
island. These are: mangrove, beach vegetation, limestone, forest over ultramafic soil, lowland
evergreen rainforest, lowland semi-deciduous forest, and submontane forest.

FAUNAL COMPOSITION

15
 Considering as one of the last frontiers of the tropical rainforest not only in the Southeast
Asia but also in the world, Palawan has faunal composition both in the mainland and its
surrounding islands which are either rare, unique or endangered, most of which are not found in
other areas in the Philippines nor anywhere else in the world. In fact, Palawan faunae had
contributed much to the list of mammalian fauna of the Philippines which otherwise would have
been a short one (Diokno, 1983). Palawan has a distinct and much richer fauna than those of the
other islands put together.

It is theorized that such faunistic composition in Palawan is attributed to the migration of

terrestrial mammals from the Indo-Malaysian Peninsula and Asia Mainland via the land-link
between Borneo and Palawan. This phenomenon explains why many of the animals in Palawan
like the pangolin, the mouse deer, the porcupine, the stink badger and the small-clawed otter are
likewise found in the Himalayas, Indonesia and Malaysia, the latter two being situated in the
Sunda Shelf. It is, moreover, believed that in spite of the wide variety of wildlife species that
reached Palawan, very few are able to progress further to the other islands.

PALAWAN’S BIODIVERSITY

A. Palawan is globally recognized and the UNESCO has bestowed upon Palawan three
distinct honors:
1. Declared the whole island of Palawan as a “Man and Biosphere Reserve” in
1990.
2. Declared as World Heritage Sites
 St. Paul’s Subterranean River which has one of the longest
underground river in the world.
 Tubbataha Reef National Marine Park for the highly diverse collection
of fishes and other marine life.
B. Philippine government declared the whole province of Palawan as “Fish and
Wildlife Sanctuary” in 1967.

C. Palawan is one of the seven Endemic Bird Area in the Philippines.

D. The Tabon Caves is called the “cradle of Philippine civilization” by Dr. Fox, an
anthropologist who discovered the 22,000 year old fossils believed to be the ancestors of
the present indigenous peoples of Palawan.

E. And just recently, in 2002, the Philippine Biodiversity Conservation Priority-setting

Program categorized Palawan as a Conservation Priority Area.

F. It is categorized as a zone with the second highest biodiversity in the Philippines. In

terms of the quality of the ecosystem, Palawan has the best quality of biodiversity
because almost half of its area is of high biodiversity according to a Parks And Wildlife
Bureau (PAWB} report of 1998.

G. The whole region was declared Fauna and Flora Watershed Reserve. This includes a
variety of protected areas, national parks, wilderness areas, experimental forests
reserves, game refuge, wildlife sanctuaries, research sites, tourist zones and marine
reserves.

THE BIODIVERSITY OF PALAWAN

16
Informant Gap. - Anyone interested in the conservation of biodiversity is faced with the problem
of accurate and current information about wildlife, the forests and ecosystems and the
environment in general.
1. There is a sore lack of important basic knowledge particularly about the biology and
ecology of Palawan wildlife species.
2. When available, some information is over a hundred years old. Information on
Palawan biodiversity is limited, incomplete and scattered among various institutions
and individuals.
3. Existing information is outdated and the status of previously recorded species needs
updating in terms of their biology, distribution, and abundance.
4. Only by continuing inventory work will the “empty forest syndrome” be monitored.
5. At present the best available reference is the Philippine Biodiversity Conservation
Priority-setting Program. Handbook and the Surublien: Strategies to Conserve
Palawan’s Biodiversity of the Conservation International Philippines. We
acknowledge use of these references in the discussion on biodiversity conservation
of the Philippines and of Palawan.

PHILIPPINE POLICIES ON BIODIVERSITY

The Philippine government’ stated policy on biodiversity is clear: it seeks to protect, conserve and
promote its equitable use (DENR-UNEP 1997; NIPAS act 1992). This means (1) keeping living
resources intact where they are found or taking them to appropriate facilities if it becomes
necessary to protect them, (2) sustainable utilizing the country’s bioresources, and (3) equitable
sharing the benefits of biodiversity among all Filipinos, now and into the future. The purpose of
the policy is to get the maximum public good from biodiversity.

However, Philippines biodiversity, as stated, is caught in three complication.

1. With the country’s policy on adhering to trade liberation which is putting pressure on
agriculture and domestic industry to deploy all means and technology to made them
competitive. The policy has increased domestic demand for imports including of plants,
planting materials and animal and animal products. It is also raising the pressure on local
farmers and manufacturers to develop and deploy biotechnology to improve their
competitiveness. The policy is raising the exposure of local biodiversity to new varieties,
strains and other biological materials from outside Palawan and outside the country,
which may cause them to lose some of their qualities, and open local bioresources to
being modified for narrow economic gains.

2. With the policy on devolution that shifts environmental governance away fro central
government, instead, reposes it on local governments, civil society, and communities.
The policy has brought about two effects on biodiversity: (1) it is proliferating the
decision centers on its conservation and management, and (2) it is spreading decisions
making across different levels of political and economic governance mechanisms in the
country. While these are consistent with the democratization strategies laid out in
Philippine agenda 21, these have, as well, made biodiversity decision making prone to
become confusing (Sajise, 1997). It is likewise opens the issues on biodiversity to getting
mixed up with the fights of traditional opposing environmental and economic interests up
and down the different centers of governance in the country (from national, regional to
local).

3. With the pressure on government for fiscal discipline. The government has been
persistently hard pressed on its budget. It has taken measures to curb spending in the

17
 long term. Among these is mandatory reduction of the bureaucracy. Attrition and
retirement have not been replaced in the last 7 years. This has curtailed the
government’s ability to deploy a sufficient level of personnel to carry out biodiversity
protection and conservation (Malayang, 2000)

The first relates to threats to biological and ecosystems’ quality in the country. The
second is about the cohesiveness of the governance of biodiversity. The third relates the threats
to the capability of the present government to protect and conserve biodiversity.

PALAWAN’S DISTINCTION AS AN ECOLOGICAL PROVINCE

Palawan has been called “the last frontier” because of its preserved ecological and bio-
diversity attractions: bountiful forests, mineral and marine resources. There are 7 protected
areas: ecologically fragile terrestrial, aquatic, and marine areas needing special protection: (1)
the Ursula Island game refuge and bird sanctuary; (2) the Malampaya Sound protected land and
seascape; (3) the El Nido-Taytay resource managed area; (4) the Calauit game preserve; (5) the
Palawan flora, fauna, and watershed reserve; and the two UNESCO World Heritage Sites: (6) the
Puerto Princesa subterranean river national park; (7) the Tubbataha reefs national park. In the
last two decades provincial and city officials have meticulously safeguarded and preserved these
resources.

The Strategic Environment Plan for Palawan (Republic Act 7611), was promulgated
in 1983 with the following declaration of policy:

o To “assist and support the implementation of plans, programs, and projects formulated
to preserve and enhance the environment and at the same time to pursue the socio-
economic goals of the country”;
o To “support and promote the sustainable development goals of the province”;
o To “promote and encourage the involvement of all sectors of society… in resource
management, conservation, and protection.

The administrative machinery for the governance, implementation and policy direction of
SEP is the Palawan Council for Sustainable Development (PCSD). A regular professional support
staff was created under section 20 of RA 7611, the Palawan Council for Sustainable Development
Staff (PCSDS).

The SEP Act and PCSD sets Palawan apart from other provinces and emphasizes their
role in guarding and preserving the ecological uniqueness of Palawan. The SEP Act provides for
the rules, while the PCSD implements the rules.

CONCLUSION

In recognition of its important wildlife floral and faunal resources, the entire province of
Palawan with 1,474,576 hectares was proclaimed as a game refuge and bird sanctuary under
Presidential Proclamation No. 219 on July 2, 1967. But the question remains: How does a game
refuge/bird sanctuary or wildlife reserve, for that matter, best fulfill its role?

Palawan’s flora and fauna faces many threats. They are matters that can be addressed
by good science and good technical management of ecological conditions. Often overlooked are
the potential problems that await to put biodiversity resources at risk due to policy
inconsistencies and tensions. They endanger biodiversity by curtailing the ability of society over
their interest that opposes biodiversity protection and conservation.

18
 This paper outlines only some of the possible debilitations of Philippine biodiversity
policy, which a cursory examination may immediately reveal as obvious. What the writer hopes to
achieve, ultimately, is to arouse some interest for a more comprehensive assessment of
Palawan’s biodiversity policy to identify what might be done about it now to prevent serious risks
to Palawan and Philippine biodiversity in the future.

LEGAL BASIS

NATIONAL LAWS

The establishment of a Federal State of Palawan is replete with legal basis, which, if
taken in totality justifies the initiative that Palawan form itself into a Federal State.

It is common knowledge among us that our 1987 Constitution provides in Section 25,
Article II (Declaration of Principles and State Policies) that:

“The State shall ensure the autonomy of local governments.”

Consistent with the above provision, the 1987 Constitution in Section 2, Article X (Local
Government) has declared that”

“The territorial and political subdivisions shall enjoy local

autonomy.”

Section 3 of the same Article mandates that:

“The Congress shall enact a local government code which shall

provide for a more responsive and accountable local government
structure instituted through a system of decentralization x x x.”

The Constitution has likewise granted local governments the power to create its own
sources of revenues and to levy taxes, fees and charges which shall accrue exclusively to the
local government concerned (Section 5, Article X).

It is also worth mentioning that our Constitution has prescribed the creation and
procedure for creating autonomous regions in Muslim Mindanao and in the Cordilleras (Section
15, Article X).

The above provisions in the Constitution clearly show that the autonomy of local
governments as well as decentralization have been recognized by the State itself and that this
idea is no longer new to us.

Pursuant to Section 3 of Article X of the Constitution, the Congress enacted the 1991
Local Government Code which has many innovations demanded by decentralization.

Among the general features of the Local Government Code are the following:

1) Local Autonomy- transformed LGU’s into self-reliant communities thru a more

responsive and accountable local government structure instituted thru a system of
decentralization.

19
 2) Decentralization- grants more powers, authority, responsibilities and resources.

3) Decentralization program- transfer of responsibility for the provision of basic

services and facilities;
-transfer of regulatory functions;
-improved national government-local government relations.

4) Basic services and facilities devolved to LGU’s.

It can be said then, that the enactment of the Local Government Code in 1991 is a
prelude to federalization.

Jose N. Nolledo, a prominent Palaweño, in a Speech addressed to the Constitutional

Commission which drafted the 1987 Constitution made the following observations that show the
merits of authentic decentralization:

“If the wealth of the nation must be equitably diffused, so must political
power be shared and dispersed. A shared responsibility in a decentralized
government heightens access of the people to decision and policy-making
process and enables the people to end their passivity, thus making them truly
self-reliant as well as enabling them to achieve maximum freedom, peace and
order. Decentralization encourages the people to unleash their creative energies.
It destroys the capital city syndrome as it overcomes the psychological
dependency of local areas upon the center of government. Thus, it can be well
said that centralization which emphasizes the unjust maintenance of the status
quo is an idea merely of order while decentralization which promotes
entrepreneurship and innovation is truly a concept of freedom.”

Other Bases:

1) Republic Act No. 5185 (Decentralization Act of 1967)

2) Republic Act No. 2264 (Local Autonomy Act) –1959

The right of the people to self-governance is not without international basis.

INTERNATIONAL LAW

Article I of the United Nations Charter states the Purposes and Principles or common
ends of the Charter to which the member states subscribe. It is expressed in paragraph 2 thereof
that one of its purposes is as follows:

20
 “To develop friendly relations among nations based on respect for the
principle of equal rights and self-determination of peoples, and to take
other appropriate measures to strengthen universal peace.”

The above raison d’ etre of the United Nations manifests recognition of the right of
peoples to self-determination. Such right is considered as an effective means of fostering
freedom, peace and development. If peoples are allowed to make decisions for themselves, we
are promoting and encouraging respect for human rights and for fundamental freedoms.

The establishment therefore of an independent Palawan State is in keeping with

upholding the Palaweños’ right to self-determination- a principle of international law adhered to
by members of the United Nations.

Corollary to the right to self-determination is the fundamental right of a state to

sovereignty and independence. As a sovereign state, a state has “the supreme power to
command and enforce obedience, the power to which, legally speaking, all interests are
practically subject and all wills subordinate” (Garner, Introduction to Political Science, 238).

In international law, it is “the attribute that enables the state to make its own decisions
vis-à-vis other states and vests it with competence to enter into relations and agreements with
them” (Isagani Cruz, International Law, 100).

On the other hand, independence means the right of national self government, the
freedom of a state from control by another state, or the right of a state to direct both its internal
and external affairs without dictation or interference from others.

In Article 2, paragraph 4 of the Charter, it is provided that “ all members shall refrain in
their international relations from the threat or use of force against the territorial integrity or
political independence of any state .” This is an express recognition of the right to independence
of a state.
Moreover, in the Declaration Regarding Non-Self-Governing Territories in Chapter XI, the
members of the United Nations assume in these territories the obligation “ to develop self-
government, to take due account of the political aspirations of the peoples, and to assist them in
the progressive development of their free political institutions, according to the particular
circumstances of each territory and its peoples and their varying stages of advancement ”. (Article
73)

The right to independence being a natural aspiration of peoples and a necessary

consequence of the right to self-determination, gained international recognition and support. It is
by adhering to the peoples’ right to independence and self-determination that freedom is won.
Thus, the Charter of the United Nations even encourages movements toward independence.

On the national level, the initiative to establish Federal State of Palawan finds support in
the provisions of our 1987 Constitution which empowers the House of Representatives to adopt
and propose amendments thereto subject to the ratification by the people. (Article 17, 1987
Philippine Constitution)

Thus, it can be said that the creation of a Federal State of Palawan is backed by legal
basis.

POLITICAL BASIS

21
 The enactment of RA 7160 or the Local Government Code of 1991 was in accordance to
a declared constitutional policy that the “state shall ensure the autonomy of local governments”.
The Code decentralized governance in the Philippines. Together with other historical records, the
Local Government of 1991 sets the precondition for the adoption of Federalism in lieu of the
existing unitary system in the country.

In the year 2000, a series of regional conference on Federalism were held in various
parts of the country. It was launched by Sen. Aquilino Pimentel, the principal author of the Code.

In the proposed federal Philippines, Palawan is included in Western Visayas region, one
of the eleven states proposed by the Movement for Federal-Parliamentary Philippines by the year
2010.

Recently, in her SONA, President Arroyo expressed determination to effect amendment to

our present Charter. Moreover, it appears that she is in favor of the adoption of a federal
parliamentary government vice our unitary-presidential system at present.

President Arroyo signed E.O. No. 429 providing for the transfer of Palawan from
MIMAROPA region for Western Visayas region. If closely examined, such act is geared towards
the laying of the ground for a federal Philippines. Initially, local leaders and concerned Palawenos
were surprised. Nonetheless, they manifested opposition to E.O. No. 429. Given such
predicament, Pres. Arroyo deferred its implementation. This aroused the sentiment of the
Palaweno leaders and gave them the opportunity to have a united stand holding that if the
Philippines is federalized, Palawan would be better off as a federal state.

For its part, the provincial board passed an ordinance calling for the creation of Palawan
Statehood Movement but opposed to the proposed division of Palawan into several provinces. If
made a federal state, the provincial board contends that there is no need for such divisions.

However, the proposal to divide Palawan into at least 4 provinces or districts is not only
realistic but it is also in accord with the tenor of federalism. Historical records show that the
province was divided into two provinces during the Spanish period, purposely to improve
governance in the province which was hindered by poor and inadequate transportation and
communication due to its archipelagic nature. In the 11 th Congress, the representatives of the
province also proposed the division of Palawan also to improve governance, owing to its
geographic nature.

Given its total land area of nearly 1.5 million hectares, and as an archipelago by itself,
composed of 1,768 islands and islets, the division of Palawan into provinces/districts once it
becomes a federal state is inevitable.

We concur with the proposal to divide the province into four districts/provinces; namely
1) Island Palawan; 2) Northern Palawan; 3) Southern Palawan; and 4) Puerto Princesa City. In
addition to these a special economic zone for Kalayaan must also be created to secure our
rightful share over resources and minerals in the area.

If by Political basis, we mean political will on the part of local political leadership and
participation or willingness of the Palawenos to make Palawan a Federal state, We believe this
important ingredient has been satisfied. Since its inception, there have been multi-sectoral
participation in the dissemination of information about Palawan statehood. Concerted efforts
have been done by the provincial government, institution of higher learning, local media, a group
of concerned citizens and other civil society groups to inform Palawenos of the proposed

22
constitutional amendment or Charter Change and its implications to their opportunities of
maximum progress and development under a Federal-Parliamentary Philippines.

SOCIO – ECONOMIC BASIS

MIGRATION PATTERN

Contemporary Palawan is a migrant province. It is the basic proposition in discussing the

socio-cultural profile of the province. Its early inhabitants, the Bataks, Palawan, Tagbanua,
Agutaynon, were later followed by the Muslim settlers (Molbogs and Jama Mapun from Mindanao,
Sulu and Borneo) who occupied the southern portion of the island of Palawan. They were the
first migrants. The katutubos were eventually pushed upland, but with inter-actions with the
Muslim settlers.

Settlers from Madia-as came next. Cuyo because of its proximity to Panay, was supposed
to have been inhabited by one of the mythical ten Bornean Datus.

With the coming of the Spaniards, the Calamianes was the first area to be under its
influence, Cuyo gaining prominence when the Agustinian Recollects started the “Christianization”
of Palawan in 1644. Eventually exiles and deportees came in, again with Cuyo being favored
because of its abundance in food and security from Muslim raids. It became the temporary home
of self-exiles from Spain in fear of being decimated by the tumultuous conditions in Europe. From
their forbears came the Ponce de Leon family linking their ancestry to a Duke in Spain, the
Reynosos, the Rodriguezes, the Fernandez’, etc. A number of these families are now the politico-
economic, and social elites of Palawan.

Chinese merchants were addition to the growing trade in the area. Filipino-Chinese
business men now have a major share in the private business of Puerto Princesa. They are into
construction, hardware, drugstore, food, hotels, resort, and a “mall”.

During the American period, migrants from Luzon and the Visayas started coming in even
with the scourge of Malaria, and the negative image of Palawan being the home of prisoners
(colono) in Iwahig and lepers (leproso) in Culion.

After World War II, more settlers came in, preferably those who migrated to Narra under
the Magsaysay plan of giving land to farmers in Luzon. The entry of Visayans were lured by the
bountiful fishing industry in Palawan. In the 1980’s expats from Europe and the United States
became permanent residents, married Filipinas, and added to the migrant population of Palawan.

The short history of migration has a number of lasting consequences: (1) population
growth steadily increased through the years; (2) adaptability to the environment has been easy
with the absence of entrenched indigenous groups; (3) culture has not been dominated by one
group despite the apparent ascendancy of Cuyunon culture.

A. POPULATION GROWTH

The increase in population of Palawan has been dramatic. From 35,000 inhabitants in
1903 the population increased to 56,360 in 1948, to 192,540 persons in 1960 (Eder, 2004,633).
The Human Development Report of the Province of Palawan for the year 2000 showed a rising
trend of the population between 1975 and 2000. Where in 1975, the population was 300,065, it
increased to 528,287 in 1990. It reached 640,486 in 1995. By 2000, the number rose to 755,412.
At present, the province has a population of 834,685 (projected).

23
 Population growth has, however, had an effect in changing the landscape of Palawan
from lush forests to an expanding agricultural area. In-migration from one municipality to
another, with Puerto Princesa as convergent point, has increased the level of poverty in the
Province. The National Statistical Coordination Board (NSCB) Resolution No. 1. Series of 2003
issued by the NSCB Executive Board approved the Official Poverty Estimation Methodology for
the computation of poverty statistics on January 15, 2003. The study was jointly done by the
NSCB and World Bank.

It was shown that a person in Palawan needed a monthly income of at least P654 in
2003 to satisfy his/ her basic food requirements. This was P3 higher than in year 2000.
Comparable to national level, a person needs a monthly income of at least P678 in 2003 to
satisfy his/her basic food requirements. The monthly per capita food threshold in Palawan is just
P24 lower than the national level.

A person in Palawan needed to earn a monthly income of at least P967 in 2003 to satisfy
his/her basic food and non-food requirements. A person in the national level, meanwhile, needs
at least P1, 022 in 2003 to satisfy both food and non – food requirements. The monthly per
capita poverty threshold in Palawan is P55 lower than the national poverty threshold.

When we talk about subsistence incidence, 19.5% families in Palawan were food poor in
2003 or did not earn enough to satisfy the minimum cost of basic food needs. This was 7%
higher than in 2000.

The poverty incidence in Palawan in 2003 was 43.1% which is 18.7% higher compared
to 2000 figures. Almost half of the population of Palawan is poor or did not earn enough to
satisfy the minimum cost of basic necessities.

The study has shown that the main city does have a good standard of living, but getting
the average of all the municipalities, figures in Puerto Princesa City has been pulled down. Other
municipalities do have high poverty incidence due to the presence of indigenous people and
migrants. Indigenous people are said to have a different standard of living because of their
simple lifestyle, thus having a minimal necessity. Migrants, moreover, are suspected to have
contributed much to the poverty incidence since most of those people who migrated here belong
to the poor families who were looking for better life.

B. ADAPTABILITY TO THE ENVIRONMENT

The settling in of Palawan’s frontier was a long, and complex process interconnected to
the filling in of other frontier territories in the Philippines. Migrants from Cuyo to the big island led
other ethnic groups in the early 20th century, but by mid century, a large group from Luzon and
the Visayas immigrated to Palawan. While there is a tendency to brand migrants as “dayu”, no
class distinctions are involved in becoming Palawenos between the “older” residents and the new
immigrants.

The Community Based Monitoring System (CBMS) migration survey of origin between
1995 to 2000 had 37.17% coming from one municipality to another; 28.99% from the Visayas;
22.97% from Luzon; and 10.74% from Mindanao. These figures tell us the heterogeneity of the
population of Palawan, with ethnic groupings easily discernible. However, no one ethnic group
has been dominant over the other, making it easy to first mix socially with the same ethnic
group, i.e., the Ilocanos, Bicolanos, Ilonggos, Cebuanos, etc., and later to be a Palawenyo. That
tagalong has been widely spoken among all groups since the 60’s, is one uniting factor for all
Palawenyos despite fifty two languages and dialects spoken. A lot of intermingling has occurred

24
in the process of settling down. Palawan had no “long established, culturally homogenous
lowland population” (Eder, 2004,633)

Even in the political scene, leaders with Cuyunon background are popular, but the
political mix is quite varied.

C. HEALTH AND NUTRITION

Recent development in the health sector call for new strategies toward a better and more
sustainable health care delivery system.

RA 8549 places the Ospital ng Palawan under the administrative and technical
supervision of the Department of Health.

With the renationalization of the PPC Provincial Hospital, the Provincial Government has
new options in the horizon. Under the New Generation of Hospitals and Clinics of Palawan
Programme, the provincial government plans to embark on the establishment of a new medical
center in Puerto Princesa City and a North Provincial and South Provincial Hospitals of Palawan.

After seven years of operation, the Alay sa Kalusugan ng Palawan has finally come to a
close. A special program created in July, 1993 by the former Gov. Salvador P. Socrates, Alayka
has successfully laid the foundations for a community-based health program. Its achievements
include the establishment of 101 functional Barangay Health Committees and fourteen (14)
Executive Barangay Health Committee. It has helped communities plan and implement
community-initiated projects such as oplan linis, toilet bowl-making and construction, drainage,
compost pits and others. It has equipped Palaweños with skills to engage in income-generating
projects such as basket weaving, goat raising, dressmaking and swine dispersal. Alayka has also
conducted massive IECs on health care and management using simple but effective tools of
communication.

Among its best practices are the Community-Based Malaria Control Program in Barangay
Mangingisda in Puerto Princesa City which has become a model for other barangays who want to
undertake similar programs in their communities. In fact, most of the activities undertaken by the
Kilusan Ligtas Malaria, the provincewide community-based malaria control program, was
patterned after the successes attained by this small community.

The non-formal education program for the indigenous peoples in 1996 in Barangay
Malihud, Bataraza has responded to the basic and functional literacy needs of the natives. It has
increased awareness of indigenous peoples on proper health care and sanitation and empowered
them to solve family, tribal and community problems and needs. About 165 indigenous peoples
benefited from the program which won for Alayka Palawan the HAMIS (Health and Management
Information System) silver award in recognition of its outstanding achievement in health care
management through innovative schemes that exemplify efficiency, effectiveness and equity. Mr.
Anastacio A. Villapa, who spearheaded the project, won the Most Outstanding Non-Formal
Education Worker in the 1999 National Literacy Awards.

Alayka Palawan has also provided communities with professional health workers through
the Stepladder Program which was adopted in Palo, Leyte. Identified students who are willing to
become health workers in their respective communities are given the opportunity to become
licensed midwives, nurses and even doctors.

25
 Recognizing the gains and achievements of Alayka Palawan, the Sangguniang
Panlalawigan passed resolution 4625-01 supporting and endorsing the integration of the
Community-Based Health Program into the health care delivery system of Palawan. Corollarily,
thirteen Rural Health Units have also expressed support to the integration of CBHP activities into
the RHU program.

A Provincial Malaria Control Program is now being established to effect the integration of
the Kilusan Ligtas Malaria and other malaria-control programs into the mainstream of the health
service delivery system.

KLM was launched in 1999 as the provincial government’s response to eradicate the
disease that has long been a scourge to Palaweños. Assistance from the Japan International
Cooperation Agency and Shell Philippines Exploration, B.V. was used for the procurement of
equipment and supplies such as microscopes and training of microscopists while the provincial
government allocated an annual counterpart fund.

In a period of two years, KLM carried out its mission through an intensive information,
education and communication campaign; organization of community-based malaria control plans
in every Barangay and the creation of technical working groups tasked to assist in the
implementation of malaria control activities. It distributed 324 microscope provincewide and
trained 344 barangay microscopists for the effective identification of malaria patients through
blood smear and adequate treatment of all malaria parasite-carriers. These efforts have
contributed to the decrease in malaria incidence from 1999 to 2001.

Devolution has enabled the Provincial Health Office to strengthen public health services
i.e., immunization of infants and young children against leading diseases and the administration
of vitamins and micronutrients to deal with deficiencies among children and women. A referral
system has been put in place to meet the needs of clients from the Barangay Health Station to
the Rural Health Unit to the District Hospitals and Provincial Hospital.

The foreign-assisted Integrated Community Health Services Project also provides benefits
such as health care financing, hospital regulation and renovation of facilities. Meanwhile, the
Pangkalusugang Kooperatiba ng Palawan assists in the procurement of medicines and medical
supplies, acquisition of additional hospital equipment, and upgrading the salaries of medical
personnel. For its efforts, the provincial government received the Gems and Jewels for Devolution
award from the DOH in 1996.

The mobilization of 525 community volunteers known as the Barangay Environment,

Agriculture and Nutrition Scholars recognizes the inter-relatedness of improved nutritional status
with food security and a well-preserved environment. Through its campaign and livelihood
projects, the Provincial Nutrition Action Office and these volunteers have successfully reduced the
malnutrition prevalent rate in Palawan form 6.15 percent in 1999 to 5.03 per cent in 2001. The
municipalities with lowest MPR are San Vicente – 1.72%; Taytay – 2.45% and Quezon, 2.82%.

D. CULTURE

Is there a distinct Palawan culture? We argued earlier that there is the seeming
ascendancy of Cuyonon culture because the Cuyonon language is still used among the senior
members of Palawan society. A study made by Dr. James Eder, perhaps the foremost
anthropologist on Palawan culture, seeking to find out who the Cuyonen are in relation to ethnic
identity provides the clue to an aspect of Palawan culture through a study of the Cuyonon
language.

26
 Eder claims that the Cuyonon language is the main distinction between Cuyonen and
other ethnic groups. Eder’s study showed that economic position and social distinction were
factors in the use of Cuyonon language to their children. While the Cuyonon language was widely
spoken in the household in the rural areas and in fishing communities during early times, today
this has changed Rural dwelling Cuyonon speak Tagalog to their children, while the more well off
urbanites speak English to their children, with a few prominent families speaking Cuyonon to
their children for “cultural survival” since Tagalog can be learned in the streets and English in
schools. There is thus an attempt to preserve Cuyonon culture through ethnic markers or culinary
tradition. Sunday Mass in Cuyonon, or the music of Sinica are attempts to promote Cuyonon
culture. Keeping with Cuyonon-ness is considered in the same level as being Palawenyos opens
the door for other cultural traditions to set in.

The layers of a Palawan culture are the katutubo, the Islamic, the Cuyonon, and the
contributions from other migrants, inter-acting with the “conquerors” and shaping up a
contemporary Palawan culture. The ascendancy of Tagalog and Visayan cultural influences in the
1960’s marked the beginning of the growth of an emerging popular culture, still growing to date.
Cuyonon culture, however, serves as foundation of that emerging Palawan culture. Cuyunon
culture establishes the continuity of cultural growth but opens the way of growth.

FINANCIAL PROFILE

Once Palawan is considered to be a federal state, all national agencies will be solely
supported by the state itself. It means that all revenues will go the state but it has to shoulder its
expenses as well. Table 1 presents the national agencies’ revenues and expenditures.

Table 1. Revenues and expenditures of the national agencies in Palawan

Agencies Revenues Expenditures

PPA 38,869,836.03 40,181,466.86
DENR 2,787,386.42 75,569193.68
BIR 450,388,356.76 N/a
Bureau of Customs 3,230,381.00 1,345,706.21
ATO 8,969,762.55 23,141,211.63
BFAR 1,330,881.00 N/a
DTI 712,103.75 1,854,844.00
DOH 6,932,833.18 24,683,633.00
DAR 615452.20 38696916.00
City Tourism N/a 3,700,000.00
Note: 2004 figures
N/a – Not available

Given the above figures, assuming the BIR and BFAR do have high expenditures, only 1 out of 10
national agencies can sustain itself from its revenues. The Bureau of Customs is the only national
agency that earns revenues higher than its expenditures. National agencies cannot provide
adequate income for its expenses, unless the government provides for them. If Palawan becomes
a state, it should have sources of income that will sustain them.

ECONOMIC POTENTIALS

27
PART 1: SHARE FROM NATIONAL WEALTH

Background:

The 1987 Constitution provides full autonomy for Local Government Units to govern
independently as well the right to share from the proceeds of its own natural resources more
known as the national wealth.

However, such mandate is on paper only. Imperial Manila still controls its governance
and not only regulates but holds back whatever share from the proceeds in all national wealth as
mandated by the 1987 Constitution and exiting laws.

This kind of environment does not exist today without any relief in sights unless a
straightforward reform or true changes in the system will be put in place. The province of
Palawan has been deprived of its shares from the proceeds for its natural resources not only in
oil and gas but also in mining operations and marine resources

We will present a blue print for the economic potentials that can generate revenues for
Palawan even at present system and can be the biggest source of revenue for Palawan as a
unitary Federal State.

EXISTING LAWS PROVIDING FOR PALAWAN’S SHARE FROM NATIONAL WEALTH:

1) Section 7, Article 10 of the 1987 Constitution provides that “the local government units
shall be entitled to an equitable share in the proceeds of utilization and development of
national wealth within their respective areas, in the manner to be provided by law,
including sharing the same with the inhabitants by way of direct benefits.”

2) Section 289 of R.A. 7160 or the Local Government Code provides that “LGU’s shall have
an equitable share in the proceeds derived from the utilization and development of the
national wealth within their respective areas, including sharing the same with the
inhabitants by way of direct benefit.”

3) Section 290 of R.A. 7160 provides that “LGU’s shall, in addition to the internal revenue
allotment, have a share of forty percent (40 %) of the gross collection derived by the
national government from the preceding fiscal year from mining taxes, royalties, forestry
and fishery charges, and such other taxes, fees, or charges, including related surcharges,
interest, or fines, and from its share in any co-production, joint venture or production
sharing agreement in the utilization and development of the national wealth within their
territorial jurisdiction.”

4) Art. 390 (b) of the Local Gov’t Code states that: “The allotment representing the share of
each LGU shall be released without need of any further action, directly to the provincial,
city, municipal, or Barangay treasurers, as the case may be, on a quarterly basis within
five (5) days after the end of each quarter, and which shall not be subject to nay lien or
holdback that may be imposed by the National Government.

OIL AND GAS PROJECT:

In the present environment, the province of Palawan has not enjoyed its share from the
proceeds of the operation of existing oil and gas production located off shore of Northeast

28
 Palawan. The contention of denying Palawan its share that there are no specific provisions under
any existing laws that defines the territorial boundary of a province except that there is only a 15
kms. Municipal boundary as specified under the local government code. While offshore oil and
gas fields are more than 45 kms off shore of the nearest island or islet of Palawan.

To solve this issue is either another law to be passed by the current congress or through
the charter change which is now being pushed of which a federal – parliamentary system is
proposed to replace the existing system.

PROVEN OIL AND GAS RESERVES:

RESERVES PRODUCTION
PRESENT START
SC FIELD HIGHEST TOTAL TO
INPLACE RECOVERABLE DAILY PRODUCTION
DAILY RATE DATE
RATE

14 NIDO 57 MMBO 17 MMBO 384 BPD 40,000 BOPD 18 MMBO 1979

14 MATNILOC 35 MMBO 11 MMBO 330 BPD 10,600 BOPD 12 MMBO 1982
37 SAN ANTONIO 4 BCF 3 BCF 1 MMSCF 1.2 MMSCF 3 BCF 1994
38 MALAMPAYA 4 TCF 3 TCF 307 307 MMSCF 249 BCF 2001
MMSCF
38 MALAMPAYA 169 MMB 118 MMB 15 MB 15 MB 13 MMB 2001
CONDENSATE
TOTAL (Oil) 92 MMB 28 MMB 30 MMB
TOTAL (Gas) 4 TCF 3 TCF 252 BCF
TATAL 169 MMB 118 MMB 13 MMB
(Condensate)

SERVICE CONTRACTS WITH PREVIOUS PRODUCTION AND PLANNED FOR REOPENING

RESERVES PRODUCTION
PRESEN
START
SC FIELD IN-PLACE RECOVERABLE T HIGHEST TOTAL TO
PRODUCTION
(MMBO) (MMBO) DAILY DAILY RATE DATE
RATE

6A CADLAO 39 MMBO 12 MMBO - 2,630 BOPD 11.2 1991

MMBO
14 WEST 472 MMBO 142 MMBO - 6,000 BOPD 8.5 MMBO 1996
LINAPACAN
14 GALOC 115 MMBO 35 MMBO - 2,500 BOPD 0.4 MMBO 1988

29
38 MALAMPAYA 311 MMBO 27 MMBO 1.9 MMBO
OIL
TOTAL 937 MMBO 216 MMBO 22.0
MMBO
GRAND 1029 MMBO 244 MMBO 52 MMBO
TOTAL (Oil)
GRAND 4 TCF 3 TCF 252 BCF
TOTAL (Gas)

Case Study for Malampaya Gas Project:

The table below shows that sharing of revenues under Service Contract 38 and
Administrative Order 381 of former President Ramos in consonance with the provisions of the
Local Government Code:

Malampaya Estimated World Market Based on R.A. DOE Under the

Gas Project Reserves Price 1998 7160 Computation proposed
US $ US $ as per A.O. Federal State
381 US$ US $
Natural Gas 2.5 TCF 0.072/cu.ft 18 Billion
Sharing Percentage Amount US $
Scheme per Sharing
A.O. 381
Gross 100.0% 18.00 B
Proceeds
Less: Cost 70.0% 4.50 B
Recovery
(70% of
Gross
Proceeds or
actual
expenses
whichever is
lower)
NET 30.0% 13.50 B
PROCEEDS
Less: SPEX’s 12.0% 5.40 B
Share (40%)
Government 18.0% 8.10 B 8.10 B
Share (60%)
Less: Income 2.5 % - 1.11B
Tax
Government 15.5% 8.10 B 6.96 B
Share after
Taxes
Net Nat’l 9.3% 4.86 B 4.89 B
Gov’t Share
Palawan 6.2 % $3.24 B* $ 2.07 B*
Share (40%)

30
Annual Share $ 162.0 M*
from 2001 –
2006 (SPEX
to Recover
Investment)
Annual Share $ 240.0 M
from 2007 –
2021 Nat’l
Gov’t Share
US$ 600
Annual 40% P 13.4 B
Share of
Palawan from
2007 – 2021
in Peso

The issuance of Administrative Order No. 381 by former President Ramos was in
consonance with Section 289 and 290 of R.A 7160. These provisions provide 40% share for LGU
including all taxes being paid by contractor or company. However, the computation of DOE, does
not actually confirmed with the Local Gov’t Code provisions. Palawan should be entitled to a total
share of US$ 3.24 Billion inclusive of the income tax. The annual share should be US$162 Million
or PhP 9.07 Billion a year. From the operation of 2002 to 2005, the National Gov’t had so far
released only P600 M in 2004 to Palawan. This is far beyond what shall be taken from 2002 to
2004 operation of a total share of P27 Billion but the national government contends that
Malampaya Gas Project is not part of the province of Palawan.

In a recent issue of The Manila Times (October 8, 2005). Mr. Facundo Roco, the external
affairs manager of SPEX, had released a statement that by 2006, 80% of the entire US$ 2 Billion
investment may be recovered, so the 70% Cost recovery will be completed on its fifth year. Mr.
Roco explained that the government can earn as much as 60% of the project’s revenues which
will go to the government while the remaining 40% will be divided among consortium members.
The Malampaya’s revenue is seen to hit at least $1 Billion a year. Again, Palawan is entitled to its
40% share from the $600 Million which is $240 million a year. By 2007, the 40% share will be
PhP 13.4 billion that is supposed to be due to Palawan annually to start in 2007.

There is no way that Palawan can claim its rightful share under the present dispensation.
The solution will be for Palawan to become a Federal State and the delineation of the state
territory shall include the off shore area surrounding Palawan seas.

EXISTING OIL OPERATION:

In the oil sector, Palawan had produced 54 Million barrels of oil from the five (5) oil fields
since 1979. Presently, three (3) oil fields still producing oil and these are the Cadlao Oil Field,
Matinloc Oil Field and Nido Oil Field, all are in the northeast coast offshore Palawan. Based on the
DOE data, the combined in – placed reserve (can be extracted in the future by new technology)
is 1,029 MMB and the recoverable reserve (can be extracted by current technology) is 224 MMB
from the results of the oil fields already explored.

Galoc Oil Field:

The Galoc Oil Field with a recoverable reserve of 35 MMB is to be re – opened. Vitol
Company joined the consortium lead by the joint venture firm – Galoc Productin company and
has earmarket US$ 45 Million for the development program and expected to start its production

31
in 2006. Palawan is expected to gain another P 1 Billion based on the provision of the Local
Government Code.

Oil from Malampaya Rim

While the oil from the Malampaya Oil Rim is now being offered by DOE and PNOC for
other contractor to extract its oil, Malampaya oil has a recoverable reserve of 27 MMB. Under the
current technology, the cost of production is about US$700 Million and at current prices of $60 to
$70 a barrel, the oil reserve is worth around $1.5 billion to $1.9 billion and Palawan can at least
have a share of US$ 192 Million or P10.7 Billion.

Octon Oil Field:

Under the Service Contract 6A, Octon Oil Field has estimated to contain up to 12 MMB of
oil and 23 billion cubic feet of natural gas. The Geneva – based Vitol Company is opting to invest
US$40 Million under a consortium with Philodrill Corp., the operator of SC ^A.

Philippine Contracting Round II (PCR II)

Philippine Contracting Round II (PCR II) – the Department of Energy had offered to Oil
Investor to participate in bidding out about 30 Blocks of prospective oil and gas deposits
surrounding the province of Palawan with potential deposits of 5 Billion barrels of oil and 15 TCF
of natural gas. This potential can be commercially produced in about 20 years to 50 years from
now.

Kalayaan Islands Group Oil Prospect:

Kalayaan Island Group (KIG) – the Philippine government entered into a tripartite
agreement with China and Vietnam for the exploratory and seismic survey of the KIG believed to
have big deposits of oil and gas.

ISSUES:
There are two bones of contention in the adoption of a provision on how to treat off
shore national wealth particularly oil and gas;

a) If the Federal Constitution of America will be adopted for the offshore provision, Oil and
Gas located offshore are owned by the Federal Republic and not by the State. This will
deny us our sovereignty and at worst, not get any share. The minimum the state can get
is a proportionate sharing among all the states and the best share is a proportion of
share between the Federal Republic and the State, similar to the Local Gov’t Code of
40%-60% sharing.

b) If the constitution of Borneo is to be adopted, the state owns all offshore national wealth
and the state remitting the share of the Federal Republic. The worst scenario is a
proportion of 40%-60% in favor of the Federal Republic and the best scenario is a
proportion of 60%-40% in favor of the State.

CONCLUSION:

32
 Palawan is expected to depend mostly on oil and gas revenue to finance the operation of
the Federal State of Palawan. From its current production from Malampaya Gas Project, the
three (3) existing oil field and the scheduled re- opening of Galoc Oil Field and Octon Oil
Fields, Palawan may realize a total of P20 Billion Pesos annually for the next 15 years.
Beyond 15 years PCR II and the potential oil and gas deposits in Kalayaan Island Group will
start its productions that will sustain the operation of Palawan in another 50 years. We can
conclude that Palawan is economically viable to stand itself as a Federal State from oil and
gas resources alone.

MINERAL RESOURCES:

After oil and gas resources, the next biggest taxes that Palawan has a 40% share is in
mineral resources. There is neither debate nor issue in regard to the legitimate claims by the
Palawan of its ownership. It is within the territory of the province of Palawan and
municipality and its barangay. Therefore wherever the location of this mineral resources, the
law is very explicit, sharing the same with the inhabitants by way of direct benefits. But
again, similar to oil and gas share, National government denied Palawan, its municipalities
and barangay their respective rightful shares.

The Philippine Mining Act of 1995 and its Revised Implementing Rules and Regulations
(RIRR) is considered in the industry today as one of the most socially and environmentally –
sensitive legislations in its class. It has specific provisions that take into consideration;

 Local government empowerment;

 Respect and concern for the indigenous cultural communities;
 Equitable sharing of benefits of natural wealth;
 Economic demands of present generation while providing the necessary
foundation for future generations;

The IRR highlights the role of local government units (LGUs) in mining projects, both as
beneficiaries and as active participants in mineral resources management, in consonance
with the Constitution and government policies on local autonomy and empowerment. As
such, the Mining Act provides the following:

 In consonance with the Local Government Code of 1992 (LGC), LGUs have a
share of forty percent (40%) of the gross collection derived by the National
Government from mining taxes, royalties and other such taxes, fees or charges
from mining operations in addition to the occupational fees (30% to the Province
and 70% to the Municipalities concerned.)

KNOWN RESERVES AND DEPOSITS OF MINERAL ORE:

1) NICKEL ORE:

LOCATION TONS GRADE

Brgy. Buenavista, Pto. Princesa 10,794,650 1.60%

Lont Pt. & Iborsom Pt. Beron, Quezon 204,100,000 1.35%
Rio Tuba, Bataraza 9,607,200 2.30%

33
 Pulot, Narra 2,631,168 2.04%
Bato-Bato, Narra 3,670,712 2.03%
Calategas, Narra 1,752,457 2.03%
Ipilan, Brooke’s Point 6,149,457 1.75%
Quezon and Aborlan 172,982,380 1.33%
Ipilan, Brookes Point 2,513,000 2.20%

TOTAL POSITIVE DEPOSITS 414,201,024

CHROMITE ORE:

LOCATION TONS GRADE

Brgy. Bacungan, PPC 1,741,290 14.0%

Brgy. Irawan, PPC 1,397,000 41.0%
Brgy. Irawan, PPC 24,000 38.0%
Aborlan 8,000 46.14%
Bgry. Teresa, Narra 2,615,860 44.29%
TOTAL RESERVES 6,086,150

IRON ORE:

LOCATION Contractor Hectares

Brooke’s Pt Mondo Exploration Company 256 has

Brooke’s Pt Atlantic City Mining 640 has
Bataraza RTN Corp 342 has
Bataraza Rodolfo Jamir 1,086 has
Bataraza Lourdes Balage 108 has
Bataraza Iluminada Martinez 648 has
Bataraza Melencio Villanueva 108 has
Aborlan Atlas Consolidated 6,006 has
Aborlan Atlas Consolidated 810 has
Pto. Princesa Benguet Corporation 2,126 has

TOTAL 12,180 hectares

Case study: PALAWAN HPP PROJECT, Rio Tuba, Bataraza

The Palawan HPP Project at Rio Tuba, Bataraza, is included in the Ten-Point Legacy of
President Gloria Macapagal Arroyo (2004-2010). Based on data from the Department of
Environment and Natural Resources (DENR), the investment profile presented by the Mines and
Geosciences Bureau Medium to Large Scale Mineral Resources Dev’t, Palawan HPP Project’s
investment portfolio is US$180,000,000.00 and expected income is US$318,000,000.00 and the
Annual Excise Tax to the National Gov’t is US$6,360,000.00 or Php 356,000,000.00 (Exchange
rate of US$ 1.00 – Php 56.00)

34
 By extrapolating the share of the Local Gov’t Unit in accordance with the provisions of
the Local Government Code and Mining Act, the distribution of annual share to the LGU’s follows;

Annual Excise Tax Php 356,000,000.00

Section 290, R.A. 7160 40%
Share to LGU’s 142,400,000.00
Distribution of Share
Prov’l Gov’t of Palawan (20%) 28,480,000.00
Mun. of Bataraza (45%) 64,080,000.00
Brgy. Rio Tuba (35%) 49,840,000.00

The above computation covers only the Excise Tax. Under the Mining Act 1995, the
following taxes are due to the mining companies:

 Corporate Income Tax

 Excise Tax on Minerals
 Customs Duties
 Value Added Tax
 Royalties on Minerals Extracted from Mineral Reservation
 Documentary Stamp Tax
 Capital Gains Tax

For the computation of the Corporate Income Tax based on the DENR projection, the
expected income tax is US$318,000,000 for the whole life operation of Palawan HPP Project. The
expected life of the project is 20 years. The 40% share for Palawan is $127.2 million and the
annual projected share from Corporate Income Tax is $6.36 million or PhP 356 million a year.

The next highest tax that Palawan is entitled to is from the Value Added Tax computed
based on the gross sales. While we do not have an ideal data to serve as basis of the Gross Sales
that is subject to VAT, we ca make an extrapolation by assuming that the income tax represent
30% of the gross sales. If the 100% gross sales is $1.06 billion then we san safely assumed as
4% the average VAT charges that would mean the annual VAT is $42.4 million and the share of
Palawan (40%) is $16.46 million a year or PhP 921.7 million a year.

The undetermined taxes that can not be computed are the Custom Duties, Documentary
Stamp Tax, Capital Gains Tax and Royalties.

And there are payments to Local government such as follows:

 Business Tax
 Real Property Tax
 Registration Fees
 Occupation Fees (30% Province; 70% Municipalities)
 Community Tax
 Other Local Taxes

The local of transparency from the national government to provide necessary input to
determine the ideal projection on revenues that can be derived from Palawan HPP Project had
keep the province in the dark and denied whatever share supposed to be due to the Provincial
government of Palawan, the municipality of Bataraza and as well as Barangay Rio Tuba where
the mining site is located.

35
 While this presentation may be disputed by DENR and other National agencies, the
summary of taxes projected for the three (3) taxes with projected computation, the total
revenues is PhP 1.420 billion a year excluding taxes that computation where not made for lack of
basis. An example is that there is no available data that we could obtain from Rio Tuba Nickel
Mining Corporation and the Coral Bay Mining Corporation who had operating quite a long period
of time.

If Palawan HPP Project will provide an annual revenue of PhP .4 Billion to Palawan from
the semi processing of secondary grade Nickel Ore from the stock file which was mined from
the .6 million tons deposit in Barangay Rio Tuba, imagine the 204 million tons deposit in Berong,
Quezon, if this will be operated in the future, how much revenues Palawan will earn? The total
nickel ore deposit in Palawan is 44 million tons. What about the Chromite Ore and the Iron Ore
deposits awaiting also to be mined?

Economic potential on mineral resources:

Under a federal state, the discretion to adopt law-governing taxation shall be now the
prerogative of the state. All taxes being imposed by the national government will now be defined
and regulated by the state and considered another biggest potential revenue source of the state.
Palawan will get a minimum of PhP .5 billion a year from mining taxes.

MARINE RESOURCES

The area of Palawan waters is 397,000 sq. kilometers, the biggest in the Philippines that
is why 60% of the total marine products requirements of Metro Manila came from Palawan
water. However, since the implementation of the Local Government Code of 2, no clear cut
guideline on the Fishery Code on how the local government unit cal also avail of its share from
taxes derived from marine resources. This has to be studied well in the proposed Federal State
Constitution and adoption of law that pertain to Fishery Code.

Potential Marine Resources:

a) Deep Sea Fishing Industry – this is beyond the 7 seven kilometers from the shoreline
of any 1,700 islands or islets of the province of Palawan. Fishing operators are using
big fleets of fishing boats composed of Fish Finder, Trawler, Fish carrier, Processing
Vessel and other supporting boats. Most of their catch are transported to Manila, etc.
Annual fish cash is placed at tons of different type of fish. Tuna and mackerel are
one big source of the Sardines Industry

36
Figure 11. Fish Production (In Metric Tons)

Palaw an
Zamboanga del Sur
Sulu
Top 10 Provinces

Taw i - Taw i
South Cotabato
Quezon
Iloilo
Zamboanga del Norte
Bohol
Negros Occidental

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
Fish Production (in metric tons)

Palawan has the largest fish production among all provinces in the country with 432,088 metric
tons in 2003. Moreover, there has been a 33% increase in the fish production from 2002 to 2003.

b) Aqua Culturing – consist of shrimps, milk fish, fattening of crabs, and other similar
culturing through the use of fishpond or inland water catch basin. Total hectares is
____ and an annual production of ________.

Figure 12. Aquaculture Fish Production

Palaw an

Taw i - Taw i

Sulu

Bohol
Top 10 Provinces

Pampanga

Zamboanga del Sur

Bulacan

Antique

Quezon

Panagasinan

0 50,000 100,000 150,000 200,000 250,000 300,000

Aquaculture Fish Production (in metric tons)

Palawan is even the topmost aquaculture fish – producing province in the country with
260,684 metric tons in 2003. There has been a 38% increase in the production from
2002 to 2003.

37
c) Sea farming – another method of growing and fattening of marine resources such as
the green grouper, carageena, and other marine life. Green Grouper grower are
mostly located in the Northern Palawan areas of Malampaya Sound, San Vicente,
east coast of Taytay, and the Calamianes Island. Agutaya has a 1,500 hectares of
Seaweed Plantation with an annual production of 2,400 tons (underestimated).
Dumaran has 110 hectartes planted of seaweeds.

d) Pearl Farming- The uniqueness of the Palawan sea water with the quality of its
salinity, clean and protected from weather is best suited for pearl farming. Pearl
culturing is a 5 years period harvesting. One hectare will produce ___ pcs of pearl of
a high grade class. This is a big commercial business and believed profitable because
of high yield return due to its classification as a precious commodities. A 1,000
hectares of pearl farming in a 5 years cycle means harvesting of pearl is done from
about 200 hectares annually.

The municipality of San Vicente earned revenue from Port Barton Development
Corporation which for 2005 paid an amount of P117,213.62 for licenses, P19,719.00
for Mayor’s Permit. The reported gross sales production is P21,311,562.45 from the
50,000 hectares at Queens Bay, Bgy. Port Barton, San Vicente, Palawan.

A total of 75,000 hectares had been granted permit by municipalities for Pearl
Farm operator as areas for Pearl culturing. A benefit for operators in Pearl industry
but detrimental to the livelihood of small marginal fishermen denying them to catch
fish in this area. This is a sample of the rich becoming richer while the poor
becoming poorer. The worst is that taxes derived from Pearl Farm industry is so
small not commensurate to offset the lost of livelihood of the affected small marginal
fishermen.

Pearl culturing can be considered as a Fishery Product and taxes to be derived

shall also be subject to the 40% share under the National Wealth Sharing. The
operator of Pearl Farm choose Palawan water as suitable for Pearl Culturing. Pearl
Farming cannot be viable in all parts of the Philippine water, it must be cleaned,
lower salinity, and protected from strong current, this is the true nature of Palawan
water, and therefore, it is a natural resources of Palawan.

Reviewing the taxes that can be imposed on Pearl farming, similar to excise tax
can be imposed, income taxes, royalties and value added tax which may give
Palawan hundreds of million a year.

Data below show where the Pearl Farm operators applied permit:

Municipality of Busuanga
Sumapi 3,789 has
Ecofarm 2,164 has
Marily 1,408 has
Municipality of Linapacan
Hikari 3,224 has
Municipality of Coron
Ecofarm System and Resources 1,219 has
Hikari SSP Corp.
Bintuan 134 has

38
 Bulalacao 475 has
La Reine de Mer Inc.
Borac/Marcilla 414 has
Bulalacao 500 has
Municipality of Culion
Hikari SSP Corp 2,257 has
Sommaco 931 has
Municipality of Taytay
Salvamar Corp 3,676 has
Teramar Bay Farm 5,450 has
Municipality of San Vicente
Port Barton Dev’t Corp 50,000 has
Municipality of Dumaran
Chindonan Pearl Farm 4,951 has
Naglayan Pearl Farm 5,000 has
Municipality of Balabac
Total area 85,592 has

e) Municipal Waters – Fishing industry under this category are mostly small marginal
fisherman using the hook and line method and their catch is supplied to local
markets but almost first to third class are sold to buyers (both local and foreign
companies) that exports this to Manila and outside of the Philippines. One
controversial issue is the method of catching live fish which is the most lucrative
business that commands high prices in the world market. BFAR had a revenue of
P1,330,881 for 2004. There are about more than 10 live fish buyers in Palawan using
chartered plane and commercial passenger plane with a daily shipment of 5 to 10
tons.

AGRICULTURE
Figure 1. Palay Production of Palawan

250,000
Palay Production (in metric tons)

200,000

150,000

100,000

50,000

0
1997 1998 1999 2000 2001 2002 2003
Year

Palawan has produced 216, 214 metric tons of Palay last 2003. There was an average increase of
19% in Palay production from 1999 to 2003.

39
Figure 2. Corn Production of Palawan

50,000
Corn Production (in metric tons)

45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1997 1998 1999 2000 2001 2002 2003
Year

Corn production in Palawan is increasing yearly. The latest figure was in 2003 with 27, 998 metric
tons. There was an average increase of 13% in the corn production from 2000.

Figure 3. Mango production in Palawan

6,600
Mango Production (in metric tons)

6,400
6,200
6,000
5,800
5,600
5,400
5,200
5,000
4,800
1999 2000 2001 2002 2003
Year

There has been a sudden decrease of 9% in the production of mangoes in the province from
2001 to 2002. Almost 6,000 metric tons of mangoes were produced in 2002 and was just
maintained in 2003.

Figure 4. Banana Production

40
 Coconut Production (in metric
140,000,000
139,000,000
138,000,000
tons)
137,000,000
136,000,000
135,000,000
134,000,000
1999 2000 2001 2002 2003
Year

needs to be checked

Figure 5. Hog inventory

125,000

120,000
Hog Inventory

115,000

110,000

105,000

100,000
1997 1998 1999 2000 2001 2002 2003
Year

Starting year 2000, there has been an increasing hog inventory in the province. There has been a
5% increase in the year 2003. Hog inventory in 2003 was about 120,000.

Figure 6. Goat Inventory

41
 45,000
40,000
35,000
Goat inventory

30,000
25,000
20,000
15,000
10,000
5,000
0
1997 1998 1999 2000 2001 2002 2003
Year

There has been a considerable decrease in the production of goat from 1997 to 2003 for about
50%. The province has been producing about 20,000 goats in 2002 and maintained production in
2003.

Figure 7. Cattle Inventory

30,000

25,000
Cattle Inventory

20,000

15,000

10,000

5,000

0
1997 1998 1999 2000 2001 2002 2003
Year

There has been a decrease in the cattle inventory from 1997 to year 2000. From 2000, the
province has started to increase its production with an annual increase of 3%.

Figure 8. Carabao Inventory

42
 40,000
Carabao Inventory 35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1997 1998 1999 2000 2001 2002 2003
Year

Palawan has an increasing carabao inventory for the previous years, though there has been a .
1% decrease from 2002 to 2003.

Figure 9. Duck Inventory

35,000
30,000
Duck Production

25,000
20,000
15,000
10,000
5,000
0
1997 1998 1999 2000 2001 2002 2003
Year

There had been fluctuations in the duck inventory in the province. The latest inventory was in
year 2003 with 14, 306 ducks. This was 44% lower than in year 2002.

Figure 10. Chicken inventory

43
 900,000
800,000
Chicken Production

700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
1997 1998 1999 2000 2001 2002 2003
Year

There has been an increasing chicken production in the province. There has been a 44% increase
from 1997 to 2003.

TOURISM INDUSTRY:

In the Human Resource Development Plan of Oliver Hillel, it was stated that the Special
Assistance for Project Formation (SAPROF) reported that the total international arrival growth for
the province of Palawan is 25% for the years 1994 to 1998 from 34,000 in 1994 to 98,000 in
1997 and 83,000 in 1998. …

It was noted that among the places frequented by tourist in the Philippines, Palawan is
still a relatively limited destination. Data from the Provincial Tourism Office showed that in 2003
and 2004, it had significantly less than 5% of total international arrivals in the country. Although
the reach of current tourism statistics is still limited, some trends can be discerned. Tourism
began picking up in the province in 1992 when over 42,000 visitors came. It grew steep rates of
close to 50% between 1993 and 2000 when it peaked at 128,000. it however began to decrease
in May 2000, notably with the kidnapping even at Dos Palmas and the terrorist attacks in the US
in 2001. in 2002, arrivals still fell to 113,000, about 5% down from 117,000 in 2001, which was
already down by 9% in relation to 2000. Arrivals in November to December 2001 were even
worse. It fell by no less than 46% (11,378) as compared to the same period in 2000 (21,029). In
2003, recovery was steep with 142,238 arrivals, an increase of 26%.

Major international markets in 2003 and 2004 were Koreans (22% on international
arrivals in 2002 and 30% in 2004); Japanese (7% in 2002, 11% in 2004) and Americans (7% in
2002 and 4.5% in 2004). Other significant markets were Germans (3% in 2003 and 2.6% in
2004), French, UK citizens and Australians (2% each in 2003, UK and Australia down to 1.6% in
2004). See Figure below.

44
 Foreign Tourist Arrivals

35%
30%
25%
20% 2002
15% 2004
10%
5%
0%
Koreans Japanese Americans

MEDICAL SPA PROJECT:

The Department of Energy is financing the establishment of a medical spa project in the
hot spring area of Puerto Princesa to cater to foreign clients

KALAYAAN ISLAND GROUP

Another economic potential for Palawan is the Kalayaan Island Group (KIG), within the
Spratly’s and the 23rd municipality of Palawan. Kalayaan, with its vast marine territory, has one of
the richest fishing grounds in the province, and a potential of becoming the country’s leading
supplier of fish and other marine resources. Dr. John McManus of the International Center for
Living Aquatic Resources Management calls KIG a “ savings bank” that provides the constant flow
of fish larvae to more depleted areas of the sea. This testifies to the abundance of fish in the
area. Its many coral reefs inhabited by various species of fish have been frequented by foreign
fishermen from Hainan, China, and local fishermen from as far as Batangas. Giant sea cucumber
and giant clams also abound within the territory. The South China Sea is one of the most
productive commercial fishing areas in the world. A survey done in 1984 has reported the
following data: (1) there are 314 species in the South China Sea, 66 of which are commercially
important, (2) around 5 million or 8% of the world’s annual catch of 70 million tons, come from
this territory. In 1996, the University of the Philippines Marine Science Institute claimed that the
reefs at KIG had an annual fishery yield of 78 – 105 metric tons per square kilometers. Computed
at one dollar per kilogram, the estimated annual yield of the KIG amounts to US $78,000 -
$105,000 per square kilometer. Pelagic fishing (Tuna and Mackerel) will add to this another 47 -
105 M US dollars of estimated income. The Spratly’s straddle the migration path of Yellow Fin
Tuna, and with more than 600 coral reefs and associated structures. The figures presented may
be far more conservative than the actual. From 1992 – 1995, the Bureau of Agricultural Statistics
reported a 20% contribution of Kalayaan’s Fishing ground to the annual commercial yield, which
was the highest from a single statistical fishing ground. The catch taken from the area reached p
to 180,000 metric tons. This attests to the richness of Kalayaan’s fishery resources (Kalayaan
Frontier, pp34 – 36).

Kalayaan’s economic potential is not limited to its marine resources. It is believed to be

sitting on top of what could be the largest oil and natural gas deposits ever explored, being

45
located between the oilfields of Brunei and Borneo in the South and Linapacan and Malampaya
oilfields in the North China, which leads all claimant countries in terms of exploratory efforts in
the South China Sea, reported the following:
(1) the continental shelf of the South China Sea has geological structures that could trap oil in
large quantities; (2) the South China Sea holds one of the world’s four largest hydrocarbon
concentrations; and (3) the Spratlys could generate 17.1 billion of oil (Kuwait has 13 billion)
according to China’s Ministry of Geology and Mineral Resources (Kalayaan Frontier, p.36)

The richness of marine life in the province is vouched for by the record from the Bureau
of Agricultural Statistics. The Palawan Operation Center of fishery production recorded a total of
20, 807 metric tons in 2003 and a total of 140, 216 metric tons of marine municipal production in
the same year. A record from the Bureau of Fisheries and Aquatic Resources Provincial Fisheries
Office also show the revenues generated from the fishery industry in Palawan, which includes
fishpond rentals, commercial fishing boat licenses, and other fees, amounted to 304,646.20
pesos in 2003 and 743, 231.00 pesos from January to June 2004. Chinese and Vietnamese
poachers were even caught and jailed for the intrusion into Philippine territory by fishing within
the jurisdiction of Palawan.

REFERENCES

Blair and Robertson, The Philippine Islands.

Fernandez and Fernandez, Chronology of Events in Palawan History.
__________________________, Local Heroes of Cuyo Islands.
__________________________, Some Palaweno Personalities,vol.1.
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